Monte Sereno City Council
June 4, 2024

AGENDA
City of Monte Sereno
Tuesday, June 4, 2024
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.

ANNOUNCEMENTS

PRESENTATIONS

1. Santa Clara County Fire Safe Council
Presentation
6 - 10

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.

2. Approve the Minutes of the May 7, 2024 and May 21, 2024 Regular City Council Meeting
Staff recommends approval of the Minutes of the May 7, 2024 and May 21, 2024 Regular City Council Meeting.

Staff Report -SR-22-148 - Pdf
11 - 20

3. Approve Warrant List Dated June 4, 2024 in the amount $135,125.44 Staff recommends the City Council approve the Warrant List Staff Report - SR-24-109 - Pdf
21 - 22

4. Consideration of the Approval of an Updated Fee Schedule for User and Regulatory Fees
Staff recommends that the City Council adopt the draft resolution to update the fee schedule for user and regulatory fees.

Staff Report - SR-24-099 - Pdf
23 - 96

5. Review and Accept Biennial Review of the City of Monte Sereno's 97 - 105

Conflict of Interest Code
Staff recommends that the City Council accept staff's review identifying no changes in the City's Conflict of Interest Code and adopt a resolution of the City Council of the City of Monte Sereno acting as the code reviewing body for the Conflict of Interest Code approving the Conflict of Interest Code of City of Monte Sereno.

Staff Report - SR-23-258 - Pdf

6. Adopt a Resolution to Adopt to a List of Projects for Fiscal Year 2024/25 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) 2024/25 by SB 1: the Road Repair and Accountability Act of 2017.

Staff Report - SR-24-107 - Pdf
106 - 110

PUBLIC HEARINGS

UNFINISHED BUSINESS

7. Study Session #2 - Fiscal Year 2024 to 2026 Proposed Budget Staff recommends that the Council conduct a second Study Session to review and discuss the proposed FY 2024 - 2026 Budget.

Staff Report - SR-24-110 - Pdf
111 - 129

NEW BUSINESS

8. Consider and Appoint Members to the 2024-2025 Monte Sereno Youth Commission
Staff recommends that the City Council consider applications for the 2024-2025 Monte Sereno Youth Commission and appoint the five applicants to the Youth Commission.

Staff Report - SR-24-103 - Pdf
130 - 139

9. Consider and Confirm the 2024 Monte Sereno Social Justice Award Winner Selected by the Monte Sereno Youth Commission
Staff recommends the City Council confirm the selection of the 2024 Monte Sereno Social Justice award winner selected by the Monte Sereno Youth Commission at their May 28, 2024 Special meeting.

Staff Report - SR-24-106 - Pdf
140 - 144

10. Consider and Accept the Fiscal Year 2022-2023 Audit Report Staff recommends that the City Council consider and accept the Fiscal Year 2022-2023 Audit Report.

Staff Report - SR-24-112 - Pdf
145 - 225

11. Consider Resolution Setting Appropriation Limits for Fiscal Year 2024- 226 - 228

25 Staff recommends the City Council consider adopt a resolution setting the Appropriations Limit for Fiscal Year 2024-2025 based upon the Price Factor and Population data provided by the State of California Department of Finance.

Staff Report - SR-24-111 - Pdf

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

Craig
Monte Sereno Youth Commission
Santa Clara County Library JPA
Ellahie
Cities Association – Board of Directors
Cities Association – Legislative Action Committee
Cities Association - Cities Selection Committee
Turner
West Valley Sanitation District

Wolsheimer
Silicon Valley Animal Control Authority
Santa Clara Valley Water District Commission
Association of Bay Area Governments
League of California Cities Peninsula Division
West Valley Mayors & Managers
Mayors of Santa Clara County
Mekechuk
Valley Transportation Authority Policy Advisory Committee West Valley Clean Water Authority
West Valley Solid Waste Management Authority
Silicon Valley Clean Energy Authority

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.

RECESS TO CLOSED SESSION

12. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Government Code Section 54956.9
Case Name: Padgett v. Curtis Wright, et al.- United States District Court, Northern District of California- San Jose Division
Case No.: 5:04-cv-03946
Staff Present: City Attorney, City Manager

13. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Government Code Section 54957
Title: City Manager
Staff Present: City Manager, City Attorney

RECONVENE TO OPEN SESSION

CLOSED SESSION REPORT

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]

6/3/2024
1 Santa Clara County FireSafe Council
How we serve the Counties Wildfire Resiliency Needs &
How we can server Monte Sereno
Seth Schalet
FireSafe Council CEO
Amanda Brenner Cannon,
FireSafe Council Program Director
Mobilizing the people of Santa Clara County to
protect their homes, communities, and
environment from wildfires.
https://sccfiresafe.org/
Our Mission

6/3/2024
2 What we do
Project Management
• Community Wildfire Protection Plan
• Forest Health
• Evacuation routes
• Strategic fuel breaks
What we do
Programs
• Home Ignition Zone (HIZ) Assessments
• Annual Community Chipping program
• Fuels reduction cost-share
‣ Neighbor to Neighbor
‣ Special Needs Assistance
• Saratoga Dead Tree Rebate
• Community education
‣ Presentations
‣ Workshops
‣ Tabling events

6/3/2024
3 What we do
Collaboration
• County Fire
• Saratoga Fire District
• City of Saratoga
• Lost Altos Hills County Fire District
• Palo Alto
• San Jose Water Company
• Midpeninsula Open Space Authority
• Santa Clara County Parks
• Santa Clara County Open Space Authority
• And more…
How we can Serve Monte Sereno
Project Priorities

1. Assess evacuation routes for excess fuels due to fallen trees from public and private property

2. Increase awareness of the fire/wind danger related to poorly maintained vegetation

6/3/2024
4 How the FireSafe Council
can Support Monte Sereno

1. Assess evacuation routes for excess fuels due to
fallen trees from public and private property
FireSafe Council services:
• Project scoping/assessment
‣ $5,000 +
• Grant writing/fundraising
‣ $5,000 +
• Project implementation
‣ $15,000 - $300,000

2. Increase awareness of the fire/wind danger related to poorly maintained vegetation FireSafe Council programs:
• Home Ignition Zone Assessments
‣ $25,000 (up to 50 homes)
• Community Chipping program
‣ Covered by County Fire contract
• Workshop
‣ $2,000 - $10,000
How the FireSafe Council can Support

6/3/2024
5 The FireSafe Council offers many services and programs through grants and contracts throughout Santa Clara County
• We currently have contracts with:
‣ County Fire
‣ The City of Saratoga
‣ The Saratoga Fire District
‣ Los Altos Hills County Fire District
• Work the FireSafe Council is currently doing with Monte Sereno:
‣ Planning a new hazardous tree removal rebate program for residents ‣ Assisting with the update of the Monte Sereno Annex in the countywide CWPP • A few suggested future services to support priorities are:
‣ HIZ assessments and workshops
‣ Fuel load assessment and project scoping to reduce fuels along critical evacuation routes ‣ Grant writing and project management to implement fuels reduction projects Wrapping up
Thank You
Seth Schalet
FireSafe Council CEO
[email protected]
Amanda Brenner Cannon,
FireSafe Council Program Director
[email protected]
https://sccfiresafe.org/

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Approve the Minutes of the May 7, 2024 and May 21, 2024 Regular City Council Meeting
Recommendation(s):

Staff recommends approval of the Minutes of the May 7, 2024 and May 21, 2024 Regular City Council Meeting.

Fiscal Impact:

There are no unbudgeted fiscal impacts with this agenda item.

Public Noticing:

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

Attachments:
05-07-24 Regular Meeting Minutes DRAFT
05-21-24 Regular Meeting Minutes DRAFT

MONTE SERENO CITY COUNCIL MEETING MINUTES

REGULAR MEETING
7:00 p.m.

May 7, 2024

MEETING CALLED TO ORDER
At approximately 7:02 p.m., Mayor Wolsheimer called the meeting to order.

PLEDGE OF ALLEGIANCE
Monte Sereno Staff Member Thomas lead the Pledge of Allegiance.

ROLL CALL
Present – Chambers: Councilmember Turner, Councilmember Ellahie, Councilmember Mekechuk, Vice Mayor Craig and Mayor Wolsheimer
Present – Remote: None

Absent: None
Staff: City Engineer/Public Works Director Jordan, City Planner Perkins, City Clerk Gonzalez-Langarica, City Manager Leonardis, City Attorney Powell
Staff – Remote: None

ORDERS OF THE DAY
Councilmember Mekechuk suggested that Item #6 under Public Hearings go right after tonight’s presentation in consideration of the public members attending this evening’s meeting for that item.

The Council agreed.

UNFINISHED BUSINESS
Mayor Wolsheimer recused himself, as he lives within a 500 ft radius of Item #3.

Vice Mayor Craig lead the meeting in the recusal of Mayor Wolsheimer.

3. Consideration of Daves Avenue “S” Curve Safety Measures City Engineer/Public Works Director Jordan provided a staff report and answered questions from the Council.

Discussion ensued.

Vice Mayor Craig opened the item for Public Comment.

Public Comment
• Resident E. Wolsheimer
• Resident Sheridan
• Resident N. Wolsheimer
• Resident Jackson (Remote)
• Resident Medefesser
• Resident Wood
• Resident Spitzer
• Resident Charles
• Resident C. Call
• Resident E. Sliva
• Resident B. Call
• Resident Inlegal
• Resident Berstein
• Resident L. Sliva
With no one else wishing to speak, Vice Mayor Craig closed Public Comment.

Vice Mayor Craig reopened Public Comment.

Public Comment
• Former Mayor Lawler
With no one else wishing to speak, Vice Mayor Craig closed Public Comment.

MOTION: Motion by Councilmember Mekechuk to install (2) speed tables, a sidewalk and reflectors on lane line. Seconded by Councilmember Ellahie.

VOTE: Motion failed. (2-2-1 Absent: Wolsheimer)
MOTION: Motion by Councilmember Mekechuk to install (2) speed tables and a sidewalk. Seconded by Councilmember Ellahie.

VOTE: Motion passed. (4-0-1 Absent: Wolsheimer)
Vice Mayor Craig requested a short (5 minute) recess before proceeding with the meeting.

The Council agreed.

ANNOUNCEMENTS
None.

PRESENTATIONS
None.

PUBLIC HEARINGS
None.

ORAL COMMUNICATIONS
None.

WRITTEN COMMUNICATIONS
None.

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

1. Approve Warrant List Dated May 7, 2024 in the amount $186,504.38

2. Approve the Minutes of the April 16, 2024 Regular City Council Meeting Councilmember Turner requested to pull Item #2.

Mayor Wolsheimer opened the Consent Calendar for Public Comment. With no one wishing to speak, Mayor Wolsheimer closed Public Comment.

MOTION: Motion by Vice Mayor Craig to approve Item #1 on the Consent Calendar.

Seconded by Councilmember Turner.

VOTE: Motion passed. (4-0-1- Abstain: Mekechuk)
MOTION: Motion by Vice Mayor Craig to approve Item #2 (with an amendment to reflect what happened at the meeting) on the Consent Calendar. Seconded by Vice Mayor Craig.

VOTE: Motion passed. (4-1-0 Noes: Ellahie)

PUBLIC HEARING

8. Adopt a Resolution to Amend the General Plan by Adopting the 2023-2031 Housing Element (CEQA: Exempt, Guidelines sections 15303, 15332, 15061) City Planner Perkins provided a staff report and answered questions from the Council.

Discussion ensued.

Mayor Wolsheimer opened the item for Public Hearing. With no one wishing to speak, Mayor Wolsheimer closed the Public Hearing.

MOTION: Motion by Councilmember Mekechuk to Adopt Resolution to Amend the General Plan by Adopting the 2023-2031 Housing Element. Seconded by Vice Mayor Craig.

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

NEW BUSINESS

9. Consider Adoption of a Resolution Declaring Hazardous Vegetation (Brush) a Public Nuisance City Attorney Powell provided a staff report on behalf of the City Clerk and answered questions from the Council.

Discussion ensued.

Mayor Wolsheimer opened the item for Public Comment.

Public Comment
• Resident Shannon
With no one else wishing to speak, Mayor Wolsheimer closed Public Comment.

MOTION: Motion by Councilmember Mekechuk to Adopt a Resolution Declaring Hazardous Vegetation (brush) a Public Nuisance and providing for Abatement. Seconded by Councilmember Turner.

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

COMMITTEE/COMMISSION REPORTS
Vice Mayor Craig shared that the first annual “Keep Our City Pretty” event was a success. The Vice Mayor thanked staff and volunteers for coming out and getting involved. Vice Mayor Craig shared that at the last Youth Commission meeting, ways were discussed as to how to help enhance the vitality of the Youth Commission for the upcoming year. Vice Mayor Craig shared that the Chief Financial Officer Chuck is retiring from the Santa Clara County Library JPA after 24 years of public service.

Councilmember Ellahie shared seeing The Fall Guy movie and recommends it.

Councilmember Turner stated nothing to report.

Mayor Wolsheimer reported that the Town of Los Gatos has voted to join the Silicon Valley Animal Control Authority. The Town of Los Gatos was under contract with the City of San Jose before.

Mayor Wolsheimer shared the Wesst Valley Mayors and Managers met a couple of weeks ago; the meeting was a failure because it was held in a noisy public restaurant. The meeting has been rescheduled for next week at Cisco Systems.

Councilmember Mekechuk shared he will be out next week traveling internationally.

Councilmember Mekechuk reported that the Valley Transportation Authority Policy Advisory Committee will be meeting this Thursday. The West Valley Clean Water Authority is considering a name change. West Valley Solid Waste Management Authority is meeting on the fourth week in May for consideration on a budget and approval of new rates. The Silicon Valley Clean Energy Authority’s executive committee met last week in anticipation of the board meeting that will be held tomorrow.

COUNCILMEMBER COMMENTS
None.

CITY MANAGER’S REPORT
City Manager Leonardis reported that this year’s Picnic will be held at a different site location to accommodate an increased number of guests.

FUTURE AGENDA ITEMS
Councilmember Turner would like information on the pros and cons of the City converting to a charter city.

Mayor Wolsheimer 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 9:46 p.m.

RECESS TO CLOSED SESSION

11. CONFERENCE WITH LEGAL COUNSEL- EXISTING LITIGATION
Government Code Section 54956.9
Case Name: Padgett v. Curtis Wright, et al.- United States District Court, Northern District of California- San Jose Division
Case No.: 5:04-cv-03946
Staff Present: City Attorney Powell, City Manager Leonardis

RECONVENE TO OPEN SESSION
The City Council reconvened to Open Session at approximately 10:20 p.m. with Mayor Wolsheimer, Vice Mayor Craig, Councilmember Mekechuk, Councilmember Ellahie and Councilmember Turner present.

CLOSED SESSION REPORT
Mayor Wolsheimer stated that there were no reportable actions.

ADJOURN
Mayor Wolsheimer adjourned the meeting at approximately 10:20 p.m.

Evert Wolsheimer, Mayor
ATTEST:
____________________________________
Gloisy Gonzalez-Langarica, City Clerk

MONTE SERENO CITY COUNCIL MEETING MINUTES

REGULAR MEETING
7:00 p.m.

May 21, 2024

MEETING CALLED TO ORDER
At approximately 7:02 p.m., Mayor Wolsheimer called the meeting to order.

PLEDGE OF ALLEGIANCE
Youth Commissioner Swanson lead the Pledge of Allegiance.

ROLL CALL
Present – Chambers: Councilmember Turner, Councilmember Ellahie, Councilmember Mekechuk, Vice Mayor Craig and Mayor Wolsheimer
Present – Remote: None

Absent: None
Staff: City Engineer/Public Works Director Jordan, City Clerk GonzalezLangarica, City Manager Leonardis, City Attorney Powell Staff – Remote: Finance Officer Samoranos

ORDERS OF THE DAY
None.

ANNOUNCEMENTS
None.

PRESENTATIONS
None.

ORAL COMMUNICATIONS
None.

WRITTEN COMMUNICATIONS

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

1. Approve Warrant List Dated May 21, 2024 in the amount $78,378.78

2. Accept the Treasurer's Report for the Period Ending March 31, 2024

3. Authorize City Manager to Enter into Authorization Agreement with the West Valley Solid Waste Management Authority Authorizing the Authority to Represent the City in the Santa Clara County Edible Food Program

4. 2023 Annual Pavement Improvement Project Acceptance
Mayor Wolsheimer opened the Consent Calendar for Public Comment. With no one wishing to speak, Mayor Wolsheimer closed Public Comment.

MOTION: Motion by Councilmember Mekechuk to approve Items #3 and #4 on the Consent Calendar. Seconded by Councilmember Ellahie.

VOTE: Motion passed. (5-0-0)
MOTION: Motion by Vice Mayor Craig to approve Item #1 and Item #2 on the Consent Calendar. Seconded by Councilmember Turner.

VOTE: Motion passed. (4-0-1- Abstain: Mekechuk)

PUBLIC HEARING
None.

UNFINISHED BUSINESS
None.

NEW BUSINESS

5. Evaluate, Consider, and Accept Community (CBO) Grant Application Submittals City Manager Leonardis provided a staff report on behalf of the City Clerk and answered questions from the Council.

Vice Mayor Craig recused himself, as he had a conflict of interest with one of the applicants.

Discussion ensued.

Mayor Wolsheimer opened the item for Public Comment.

Public Comment
• Folake Phillips (AWO)
• Jim Barrett (Los Gatos Lion ’s Club)
• Phil Knopf (Youth Park)
• Melissa Torren (KCAT)
• Kevin Hayashi (Los Gatos Community Concert Association) • Michelle Kinman (Art Docents of Los Gatos)
With no one else wishing to speak, Mayor Wolsheimer closed Public Comment.

MOTION: Motion by Councilmember Mekechuk to award the CBO Grants as follows:

Art Docents of Los Gatos $4,500

Los Gatos Community Concert Association $4,000
Los Gatos Youth Park $5,000
Los Gatos Lion’s Charities $1,500
Los Gatos Public Media – KCAT TV $5,000
West Valley Community Services $5,000. Seconded by Councilmember Ellahie.

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

6. Study Session - Fiscal Year 2024 to 2026 Proposed Budget Finance Officer Samoranos provided a staff report and answered questions from the Council.

Discussion was held on the proposed Fiscal Year 2024-2026 Budget.

Mayor Wolsheimer opened the item for Public Comment.

Public Comment
• Resident Shannon
With no one else wishing to speak, Mayor Wolsheimer closed Public Comment.

COMMITTEE/COMMISSION REPORTS
Vice Mayor Craig stated nothing to report.

Councilmember Ellahie reported he attended a meeting with the Cities Association. He shared there is support for general legislation that tries to bring about a proper way of reducing crime.

Councilmember Turner stated nothing to report.

Councilmember Mekechuk reported that the Silicon Valley Transportation Authority Policy Advisory Committee met about two weeks ago, and he shared being amazed with the amount of funds available for street improvements. West Valley Clean Water has a meeting coming up. West Valley Solid Waste Management Authority is meeting tomorrow at the Monte Sereno Chambers. Silicon Valley Clean Energy Authority has an executive committee meeting this week.

Mayor Wolsheimer shared there weren’t any meetings on the committees that he serves on. Mayor Wolsheimer shared he has a busy schedule with a meeting with Silicon Valley Animal Control, then with League of California Cities, and lastly, West Valley Mayors and Managers, all tomorrow.

COUNCILMEMBER COMMENTS
Councilmember Turner shared that she attended a Los Gatos-Monte Sereno Police Department event. She shared that there are difficulties with recruitment for the police force.

CITY MANAGER’S REPORT
City Manager Leonardis thanked the Youth Commission for putting on the Ice Cream Social and thanked those who attended. City Manager Leonardis shared that the City is working on clearing weeds and will be working with the Fuel Crew of Santa Clara County Fire in the fall.

FUTURE AGENDA ITEMS
Mayor Wolsheimer would like to see a study session on grant writing in the near future.

ADJOURN
Mayor Wolsheimer adjourned the meeting at approximately 8:55 p.m.

Evert Wolsheimer, Mayor
ATTEST:
____________________________________
Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: CONSENT CALENDAR
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Approve Warrant List Dated June 4, 2024 in the amount $135,125.44 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 this agenda and this report appear on the City's website.

Attachments:
2024 06 04 Warrants List

CITY OF MONTE SERENO

REGISTER OF ACCOUNTS PAYABLE
AS OF THESE DATES:

June 4, 2024
CHECK
NO. TO FOR AMOUNT ACCOUNT
NO.
20860 Alana Consulting, LLC Hourly Services for 05-06-2024 to 05-31-2024 ($7,073) and ePermit Development ($6785) 13,857.50 01-765 20861 BMI Imaging Systems Web Hosting 225.00 01-715
20862 Daryl Jordan Reimbursement for BPELSG, California State License Renewal 180.00 01-745 20863 Maze & Associates Audit for FY 2023 - Basic Financial Statements and Memorandum on Internal Control 29,100.00 01-470
20864 Pacific Gas & Electric
Electricity Services for City Hall ($582); Electricity for Annex Building ($11); Monte Sereno Street and Highway Lighting ($220) and Loma Serena Lighting District ($200).
1,012.71
01-705
05-890
40-935
20865 RICOH USA, INC. Copier rental for City Hall 480.23 01-715 20866 Town of Los Gatos
Finance Department Police services 89,270.00 03-545
20867 Virtual Project Manager Capital Improvement cloud based software system management 1,000.00 12-845 TOTAL WARRANT LIST $135,125.44

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 22 of 228

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: CONSENT CALENDAR
Staff Contact: Diana Perkins, City Planner
Department: City Planner
Title: Consideration of the Approval of an Updated Fee Schedule for User and Regulatory Fees
Recommendation(s):

Staff recommends that the City Council adopt the draft resolution to update the fee schedule for user and regulatory fees.

Background Information:

On May 1, 2018, City Council adopted Resolution 3682, which included an updated schedule of fees for building, engineering, and planning permits. The adjustments followed a comprehensive user and regulatory fee analysis completed by ClearSource Financial Consulting that evaluated the City’s cost of providing fee-related services for the Building Department, Engineering Department, and Planning Department costs to provide plan review, permit approval, and inspection services for construction permitting applications. The adjusted fees approved at that time were designed to cover 77% of the City’s total cost of providing the permitting services. California Government Code section 66014(a) requires that these types of user fees shall not exceed the cost of providing the service.

The fee study completed by ClearSource Financial Consulting (Attachment 1) also recommended that annual fee adjustments be made based on the Consumer Price Index, San Francisco Bay Area (CPI), which was formerly titled the Consumer Price Index for San Francisco-Oakland-Hayward Area.

The City Council adopted Resolution No. 22-3863 on September 6, 2022 to increase user and regulatory fees by inflation for the years 2019, 2020, and 2021 as inflationary fee adjustment has not be made since the 2018 adoption of the ClearSource Financial Consulting fee study.

At that time, the City Council also directed staff to provide an updated fee schedule, based on inflationary increases, for consideration by the City Council annually. The City Council approved the last inflationary fee increase on June 20, 2023 with Resolution 23-3885.

Analysis:

Building, Planning, and Engineering Fees

Much of the City’s staffing costs are related to services provided for construction and renovation activities in the City (e.g., planning and permitting). The City has nine full-time equivalent personnel, of which four are involved in services directly related to construction and renovation activities. The fee charged for these services cannot exceed the cost of providing such services.

Building permits serve a number of important objectives, one of which is building safety.

Issuing a building permit requires submitting a plan for that work, structural calculations, site protection plans, and building efficiency calculations. Those plans are reviewed and compliance with building codes and other regulations are checked prior to issuing a building permit. Progress during construction is verified by inspections, the cost of which is included in the building permit. Final inspections are required prior to issuing a certificate of occupancy.

Construction and renovation activities that are completed under building permits issued by the City are reviewed and inspected to verify conformance with the minimum building code requirements for fire safety, health safety and seismic safety. Construction and renovation activities that require a building permit but where the owners have not received a permit may not meet the fire, health and seismic safety requirements and, accordingly, are not in the public interest.

Inflationary Increase
The CPI increased by 2.6% in 2023. This information is available on the U.S. Bureau of Labor Statistics web page at:
https://www.bls.gov/regions/west/news-release/consumerpriceindex_sanfrancisco.htm Attachment 2 includes the draft resolution with the revised fees schedule that shows the proposed fees based on the 2.6% increase in CPI for 2023.

Staff is not recommending that City Council increase fees for Planning Appeals, Significant Tree Removal permits, or Use Permit Review for Animals, based on prior direction from City Council that directed these fees not be altered in 2018.

The proposed fee increase is only applied to land use permitting fees that may be set by City Council and will not be applied to the Construction Tax, which is a voter approved tax that cannot be increased without voter approval, or to other fees that are collected as paid to the State of California, such as the Strong Motion Fee and the SB 1473 fee, as these are based on State legislation that sets a specific fee amount.

The 50% building permit and plan check fee reduction that has been approved by City Council for building permits that create a new Accessory Dwelling Unit (ADU) will remain unchanged.

The 225 property owners who completed a written intention to create an ADU will still receive the fee reduction on their building permit if issued by December 31, 2029.

Proposed New Fee for SB9 Urban Lot Split

The proposed updated fee schedule in Attachment 2 also includes a new fee for SB9 Urban Lot Split applications. This is a new application type resulting from the State law which requires local jurisdiction to allow single-family lots to be subdivided into two lots. The SB9 Urban Lot Split requires only one application to be submitted to the City which differs from other parcel map applications which required one submittal to the Planning Department (review for compliance with zoning standards, public noticing, and public hearing) and a second submittal to the Engineering Department (technical review for compliance with engineering standards).

Staff has tracked the staff time and consulting time needed to review the SB9 applications that have been completed to date and the average cost of the review is $4,977. The proposed fee schedule includes a fee of $4,975 for SB9 Urban Lot Split Reviews. Attachment 3 includes an analysis of how this fee amount was determined.

Increased Cost of City Services
The proposed fee increase will not exceed the City’s costs of providing services based on the 2018 Fee Study, as the City’s costs of providing services have increased since the 2018 Fee Study was completed.

Staff estimates that the fiscal year 2024-2025 budget will include an increase of approximately 4% or $52,000 in total staffing costs due to the 4% cost of living increase allocated by the MOU with the Association of City Employees (ACE). This includes the increased cost of salaries and benefits from the last fiscal year budget.

Using the last fiscal year permitting activity, the proposed inflationary fee adjustment would result in approximately $18,000. Additionally, the 2018 Fee Study may be under-inclusive of the City’s actual costs of providing service as it does not appear to include costs that staff incur for consultation with the City Attorney for these types of development permits.

Fiscal Impact:

The fiscal impact of the proposed fee changes will be determined based on the volume of construction permitting applications received. Using the last fiscal year permitting activity, the proposed inflationary fee adjustment would result in approximately $18,000 of additional revenue annually.

If approved, the updated fee schedule will be effective 60 days after this hearing as required by the California Government Code section 66017(a).

Public Noticing:

In accordance with Government Code sections 66016(a) and 66019(c), notice of this meeting and potential fee increases was provided to one interest party who filed a written request to be notified of new or increased fees or services charges. Additionally, the staff report was published on May 24, 2024, at least ten days prior to the meeting.

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

Attachments:

1. ClearSource Financial Consulting User and Regulatory Fee Study, April 2018

2. Draft Resolution - Adoption of Fee Schedule

3. Analysis of Proposed SB9 Urban Lot Split Fee

User and Regulatory Fee Study
- April 2018 -
[Updated to reflect City Council direction received during the May 1, 2018 Public Hearing to consider fee updates]

Table of Contents
Executive Summary ....................................................................................................................................... 1 Legislative Guidance ..................................................................................................................................... 6 Study Methodology and Data Sources.......................................................................................................... 8 Overview of Findings and Recommendations ............................................................................................ 10 Planning Fees .......................................................................................................................................... 10 Public Works/Engineering Fees .............................................................................................................. 11 Building Fees ........................................................................................................................................... 12 Community Planning Fee ........................................................................................................................ 13 Adoption of Fees and Ongoing Fee Management ...................................................................................... 14 Appendices .................................................................................................................................................. 15 Appendix A Proposed Fee Schedule
Appendix B Illustration of Current Fees, Maximum Fees, and Proposed Fees Appendix C New Fees Proposed
Appendix D Fees Proposed to Be Removed from Schedule
Appendix E Cost of Service Analysis and Audit for Reasonableness of Outcomes

1 Executive Summary
[On May 1, 2018 the City Council held a Public Hearing to consider adoption of an updated schedule of The proposed fee for appeals was $1,000, the City Council elected to leave the fee unchanged from the current amount of $360. This report and the adopted fee schedule have been updated to reflect a proposed fee of $360. No other changes have been made].

User and Regulatory Fees
The City derives its annual revenue from a number of sources. These include, but are not limited to, property taxes, and user and regulatory fees. User and regulatory fees are intended to cover all, or a portion of, the costs incurred by the City for providing fee-related services and activities that are not otherwise provided to those not paying the fee. California law provides guidance regarding the amounts the City may charge for fee-related services and activities. Specifically, in order to avoid being considered taxes, the fees charged shall not exceed the estimated reasonable cost of providing the services, activities, or materials for which fees are charged.

Recovering the Costs of Providing FeeThe services for which the City imposes a user or regulatory fee typically derive from an individual nt in the individual action, a fee for
service ensures that the individual bears most, if not all, of the cost incurred by the City to provide that cost. When a fee targets less than full cost recovery, another City revenue source in most cases, the General Fund subsidizes the individualized activity.

Fairly allocating costs to the services provided and recovering some, or all, of these costs from service recipients creates value and predictability for City customers and reimburses the City for services provided to a single party, as compared to the public at large.

Scope of Work and Purpose for Conducting the Fee Study
The scope of work for the study can be summarized as follows:

Calculate the costs of providing fee-related services
Remodel current fee schedules to correlate to prevailing services and practices Assist with cost recovery policy development and planning for ongoing maintenance of fees Estimate revenue impacts of fee modifications where possible with available data Prepare an updated schedule of fees for City review

2 The City initiated the fee study in 2017. This effort is intended to provide multiple benefits, including:

Increase the availability of General Fund revenues to be used for services and activities available to all residents and businesses, such as public works and public safety services.

Help meet the service level expectations of the community by collecting revenues to fund the services provided by each department.

Fee Categories that Were Examined in this Study
Planning Fees, such as entitlement review and review for compliance with the zoning code Public Works Fees, such as engineering, encroachment, and excavation review and inspection Building Fees, such as construction permit processing, plan check, and inspection Summary of Findings and Recommendations
Table 1 Current Estimated Cost Recovery for Fee Services General
Fee Category Revenue Fee-Related Expenses
Cost Recovery
for Fee Services
General
Fund Subsidy
Planning $65,000 $167,000 39% $102,000
Public Works $55,000 $169,000 33% $114,000
Building $313,000 $378,000 83% $65,000
Community Planning $0 $66,000 0% $66,000
Total $433,000 $780,000 56% $347,000
Options for Ongoing Fee Management - related services. Moving forward, the City has several options:

Limited changes to current practices
o For services where the City recovers up to, or less than full cost recovery, fees may remain unchanged and the City can continue its current practice. Any fees that currently recover more than the cost of service should be adjusted downward. o This would result in the continued aggregate under-recovery of fees.

Move to full cost recovery, where practical and implement annual adjustments tied to cost inflation index
o The City could immediately recalibrate fees to target full cost recovery, except in those instances where fees are limited by another agency, or full cost recovery is impractical.

Use a phase-in approach to increase cost recovery levels and implement a pattern of ongoing annual adjustments. The pattern may be pre-determined or tied to a cost inflation index o This approach would avoid attempting to recover the entire amount of under-collection in a single year. Instead it would recognize the subsidy being provided for services and

3 consider increases over a multi-year period to reach targeted cost recovery levels which, in some cases, may be less than 100%.
o This approach also allows the City to easily identify service areas targeted for long-term subsidy and set specific cost recovery levels for individual services rather than an acrossthe-board targeting of full cost recovery.

Any Additional Revenue from Fees is Intended to Offset the Cost of Existing Services It is important to note that while adjusting fees will provide a fiscal impact in the form of additional revenue, the revenue is not intended to be used to fund new services, rather the revenue is intended to offset the costs of providing existing services that are recoverable from fees. Consequently, while fees may rise annually, typically labor costs (the primary driver of fee-related costs) also rise annually.

Recalibration of these fees simply provides an offset of existing expenditures/needs rather than a source of funding for expanded service levels.

Implementing a Policy of Pro-Active Fee Management
Continued evaluation of these fees would provide benefits, including:

Avoid fee spikes that are more likely to occur when fees are left unchanged for several years.

Provide fee payers, City staff, and City policymakers with a pattern of consistency that provides information for forecasting and decision-making purposes.

Encourage generational equity among fee payers by avoiding long-term stagnation of fees followed by significant fee increases.

Fiscal Impact of Proposed Fee Changes
The fiscal impact of proposed fee changes will be determined based on the level of cost recovery targeted from fees. This will be determined by the City Council at the conclusion of a public hearing to consider any modifications to fees. For illustrative purposes only, the revenue impact of a potential cost recovery scenario is presented in the following table. A summary of the proposed cost recovery scenario is also provided.

Table 2 Fiscal Impact of Recalibrating Fees to the Proposed Cost Recovery Scenario General
Fee Category Current Revenue
Revenue After Fee
Changes Total Fiscal Impact
Planning $65,000 $93,000 $28,000
Public Works $55,000 $113,000 $58,000
Building $313,000 $358,000 $45,000
Community Planning $0 $33,000 $33,000
Total $433,000 $597,000 $164,000

4 Table 3 Cost Recovery Impact of Proposed Fee Changes
General
Fee Category
Revenue Before
Fee Adjustments
Revenue After
Adjustments
Fee-Related
Expenses
Cost Recovery
before Adjustment
Cost Recovery
after Adjustment
Planning $65,000 $93,000 $167,000 39% 56%
Public Works $55,000 $113,000 $169,000 33% 67%
Building $313,000 $358,000 $378,000 83% 95%
Community Planning $0 $33,000 $66,000 0% 50%
Total $433,000 $597,000 $780,000 56% 77%
Summary of Cost Recovery Strategy and/or Significant Changes Included in the Proposed Fee Schedule Planning Fees
permits. Less than full cost recovery is targeted for both of these services. o Planning review of building permits target cost recovery = 50% o Tree removal permit target cost recovery = 10%
cost of service.

Establish a community
maintaining and updating the plans, documents, and guidelines required to approve development/construction within the City.
o Target cost recovery = 50%
Public Works Engineering / Private Land Development Fees established final map review fee.

Restructure NPDES fees for ease of fee calculation and administration.

Proposed cost recovery ranges between 50% and 100% depending on fee category.

Building Fees
o The proposed minimum permit fee represents roughly 45 minutes of total staff time associated with permit processing, plan review, and inspection.

Increase electrical, plumbing, and mechanical permit fees from $62 to $159 per permit.

Leave building permit and plan review fees unchanged.
o The City currently recovers the full cost of building permit and plan review, no downward or upward adjustment is required

5 Begin collecting fees for solar permits
o The City currently waives fees for solar permits. The proposed fee is $159. The proposed fee is less than solar contractors will expect to pay in most jurisdictions.

Additionally the proposed fee is set to match the City's minimum permit fee and is well under maximum amounts established by the State.

6 Legislative Guidance
The objectives of the study, the methodologies used to complete the study, and the proposed schedule of fees were significantly influenced by Article 13C of the California Constitution and Section 66014 of the California Government Code.

Article 13C states that the local government bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor's burdens on, or benefits received from, the governmental activity. Additionally, Article 13C identifies the following as items that are not defined as taxes:
1) A charge imposed for a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege. 2) A charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product. 3) A charge imposed for the reasonable regulatory costs to a local government for issuing licenses and permits, performing investigations, inspections, and audits, enforcing agricultural marketing orders, and the administrative enforcement and adjudication thereof. 4) A charge imposed for entrance to or use of local government property, or the purchase, rental, or lease of local government property.
5) A fine, penalty, or other monetary charge imposed by the judicial branch of government or a local government, as a result of a violation of law.
6) A charge imposed as a condition of property development. 7) Assessments and property-related fees imposed in accordance with the provisions of Article XIII D.

Section Notwithstanding any other
provision of law, when a local agency charges fees for zoning variances; zoning changes; use permits; building inspections; building permits; the processing of maps under the provisions of the Subdivision Map Act ; or planning services ; those fees may not exceed the estimated reasonable cost of providing the service for which the fee is charged, unless a question regarding the amount of the fee charged in excess of the estimated reasonable cost of providing the services or materials is submitted to, and approved by, a popular vote of two-thirds of those electors voting on the issue.

7 The outcomes and recommendations of the study are intended to comply with applicable federal, state, and local laws including providing confirmation that the propose result of this study are not taxes as defined in Article 13C of the California Constitution and that the services addressed in the fees. Additionally, this report is intended to show that the manner in which the costs are allocated to a payor
benefits received from the activities and services provided by the City.

8 Study Methodology and Data Sources
This study calculated the estimated reasonable cost of providing various fee-related services across the City organization. Generally, the estimated reasonable cost of providing the fee-related services and activities examined in this study can be calculated as the product of the composite fully-burdened hourly labor rate of the division responsible for providing services and the estimated labor time required to process a typical request for service (see illustration below).

The composite fully-burdened hourly rates calculated in this study are based on the estimated annual hours spent providing fee related services, and estimated labor, services and supplies, and citywide overhead expenditures:

Estimated annual hours spent providing fee related services were developed based on responses received from multiple interviews and targeted questionnaires.

Labor expenditures for in-house personnel were based on forecasts of Fiscal Year 2017/18 salary and benefits expenditures.

All other services and supplies expenditures were based on Fiscal Year 2017/18 budgeted expenditures.

Estimated citywide overhead expenditures were based on ost allocation plan.

Estimated labor times were developed based on responses received from multiple interviews and targeted questionnaires of the staff primarily responsible for the provision of services examined in the study. Commonly used industry data also aided in the development of time estimates and proposed fee structures.

Once cost of service levels are identified, the City may use this information to inform targeted cost recovery from fees. Fees set at the cost of service target full cost recovery. Fees set at any amount less than the cost of service targets less than full cost recovery.

Hourly rate * Labor hours = Cost of service
Proposed fee ÷ Cost of service = Targeted Cost Recovery

9 Summary of methodology used to calculate estimated costs of service and cost recovery levels Step One Identify annual hours spent providing
fee services for each division
This information is developed and tested using a
combination of interviews, questionnaires, historical
project information, and historical revenue information.

Step Two
Identify annual cost of providing fee
services for each division
This information is developed and tested using a
budget, expenditure history, and the overhead cost plan.

Step Three
Calculate the estimated hourly rate
using information from Steps 1 and 2
Annual cost ÷ Annual hours = Hourly rate
Step Four
Estimate labor time required to
process individual request for service
This information is developed and tested using a
combination of interviews, questionnaires, commonlyused measures, and information developed in Step 1.

Step Five
Calculate estimated cost of service
using information from Steps 3 and 4
Hourly rate * Labor hours = Cost of service
Step Six Calculate current cost recovery level
for a specific service
Current fee ÷ Cost of service = Current
Cost recovery
Step Seven Use laws, industry standards, goals
and policies, and historical trends to
determine targeted cost recovery
Proposed fee ÷ Cost of service = Targeted
Cost Recovery
Step Eight Test to confirm forecast revenue from
fees will not exceed program costs
Use historical permit volume and proposed fees to
forecast anticipated revenue from fees. Forecast
revenues should not exceed program costs.

10 Overview of Findings and Recommendations
Planning Fees
The Planning Division maintains and implements the and prepares other specialized planning documents. The department reviews development requests for conformance with the City's planning policies and standards. Department advance planning efforts. The costs of providing fee-related services are proposed to be recovered in part, or in full, from fees. Costs associated with non-fee related services are proposed to be pai General Fund revenues.

Planning Fees: Study Outcomes and Recommendations
# Finding / Recommendation Description
1 Current fees recover less than the
full cost of providing services
The Division collects only a fraction ( 39%) of fee-related costs of service.
2 Begin collecting fee for planning
review of building permits
The planning division reviews more than 100 building
permits per year to ensure compliance with City zoning
requirements (e.g. setbacks). The City does not currently recover a fee for this service. The proposed fee would
3 Consider enhanced cost recovery
for more complex review projects
The proposed fees for complex reviews such as review of site development plans involving new structures or significant additions have been recalibrated to target between 80% and 100% cost recovery.
4 Target less than full cost recovery
for minor permits or permits with
high community benefits
Less than full cost recovery is proposed for planning review of building permits; issuance of tree removal permits; site development permits for minor items such as fences,
reasonable accommodation reviews, animal-related use
permits, and appeals.
5 Adopt community planning fee Over time the City incurs significant costs associated with maintaining and updating the plans, guidelines, and Codes that are used to inform and approve development and
construction within the City. The proposed fee will allow the City to recover a portion of these costs.

11 Public Works/Engineering Fees
The Public Works Department regulates activities impacting public facilities, infrastructure, and the right of way. The department reviews development, construction, and other requests for conformance with the City's policies and standards. It also works closely with other departments to review applications and activities. The costs of providing services generated by individualized action, such as encroachments and grading, are proposed to be recovered in full, or in part, from fees. Costs associated with non-fee related services will be paid from other sources, typically General Fund revenues.

Public Works Fees: Study Outcomes and Recommendations
# Finding / Recommendation Description
1 Adjust fees to improve cost
recovery
least 50% cost recovery and in some cases 100% cost
recovery.
2 Formally establish a final map
review fee
The department is required to review and approve final
maps. A fee for this service has been added to the proposed fee schedule.
3 Restructure NPDES fees for ease of
fee estimation and administration
The number of fee categories has been significantly reduced.

12 Building Fees
The Building Department provides permitting, plan check, and inspection services for all new construction, alterations, and additions throughout the City, enforcing the provisions of the California Building Standards Code. Additionally the department serves as a primary building code resource to contractors, architects, engineers, developers, and property owners. Only the costs of providing feerelated services are proposed to be recovered from fees. Costs associated with non-fee related services Building Fees: Study Outcomes and Recommendations
# Finding / Recommendation Description
1 Current fees recover roughly 83% of
the cost of service
Communities throughout the State typically target full cost recovery (100%) for building fee-related services.
2 Recalibrate minimum permit fee
and mechanical, electrical, and
plumbing permit fees to correct
under-recovery - recovery.
3 Leave building permit and plan
review fees unchanged
xisting building permit and plan review fees
recover the costs of service. No downward or upward
adjustment is required.
4 Begin collecting minimum permit
fee for solar permits
The City currently waives permit fees for solar installations.

The proposed fee is $159. The proposed fee is less
than solar contractors will expect to pay in most
jurisdictions. Additionally the proposed fee is set to
match the City's minimum permit fee and is well under
maximum amounts established by the State.

13 Community Planning Fee
may include the
costs reasonably necessary to prepare and revise the plans and policies that a local agency is required to adopt before it can make any necessary findings and determinations.

California often attempt to recover portions of the costs of updating and maintaining these plans and policies through fees collected on various development projects.

Community Planning Fee: Study Outcomes and Recommendations # Finding / Recommendation Description
1 Adopting a community planning fee
will allow for segregation of
revenues and reduce reliance on
General Fund reserves for funding
of periodic projects
Clearly identifying this fee will provide enhanced revenue tracking information to allow for efficient identification of amounts collected for specific purposes.

The City may use these revenues to offset all or portions of the cost of in-house planning or contract planning services for preparation and revision of the plans and policies that a local agency is required to adopt before it can make any necessary findings and determinations. These include, but are not limited to, General Plan, Zoning Ordinance, and Housing Element updates.

The proposed fee revenues would recover $30,000 per year.

For administrative efficiency the fee will be collected as part of the building permit fee. The vast majority of planning feerelated services, and engineering fee-related services are associated with active building permit applications or will ultimately lead to building permit applications. Permit valuation is a readily available metric that provides a reasonable correlation to cost on a repeatable basis (i.e. more complex projects have higher valuations, and typically rely more heavily on community planning documents for
approval.

The Appendix contains a detailed listing of current fees, maximum fees, and proposed fees.

14 Adoption of Fees and Ongoing Fee Management
The fees included as part of this study are set at the direction of the City Council. Consequently, the City Council may adopt fees and modify them at a future date as costs of service change, city policies or goals change, project volumes change, service recipient feedback is received, and annual revenue impact of fees is confirmed.

If the City decides to adopt modified fees it should:

Include the fee revisions as part of all official fee schedules.

Ensure that City staff begin fee collections using updated fee schedules once the adopted fees are effective.

Periodically Review and Adjust Fees and Calculation Methodologies If fees for services are unintentionally omitted from the adopted fee schedule, they should be added to the fee schedule as part of a future update. In between updates, the City may bill hourly for fee-related services inadvertently excluded from the schedule.

Monitor feedback and permit statistics - Monitor permit and application volume and applicant feedback to determine if fee modifications are resulting in any unanticipated changes in project frequency and to increase the level of detail available for revenue forecasting.

Adjust fees on an annual basis using a predetermined pattern or inflationary index - In order to generally maintain pace with regional cost inflation , the City should adjust its fees on an annual basis.

Conduct future fee studies on regular basis The City should conduct future fee studies periodically to confirm that fee levels remain at, or below, legal limits.

15 Appendices
The appendices provides detailed analytical findings from the study, including the amount of cost, or estimated cost, required to provide the services for which the fee or service charge is levied and the revenue sources anticipated to provide the service, including General Fund revenues. For any fees targeted to recover less than 100% of the estimated reasonable cost of service, it is anticipated that General Fund revenues of the City will fund the difference between the targeted recovery level and 100% recovery of the estimated cost of service. These amounts are identified in the schedule of feebased activities included in the appendices.

Appendix A Proposed Fee Schedule
Appendix B Illustration of Current Fees, Maximum Fees, and Proposed Fees Appendix C New Fees Proposed
Appendix D Fees Proposed to Be Removed from Schedule
Appendix E Cost of Service Analysis and Audit for Reasonableness of Outcomes

Appendix A Proposed Fee Schedule

Services / Activities / Subject Matter Effective Date Page Planning Fees July 1, 2018 1 - 2
Public Works Fees July 1, 2018 3 - 4
Building Fees July 1, 2018 5 - 6
Administrative Services July 1, 2018 7
City of Monte Sereno

MASTER FEE SCHEDULE
App A - TOC Page 45 of 228
City of Monte Sereno

MASTER FEE SCHEDULE - PLANNING FEES
Note Fee
1 Planning Review of Building Permit $150
2 Community Planning Fee (per $1 of valuation) [a] $0.0018 3 Significant Tree Removal (referred to Site and Architecture Commission) $100 4 Site Development/Planned Development Permit:
a) New Houses/Demo Rebuild/Remodel/Addition 50% or more of existing SF $2,800 b) Remodel/Addition less than 50% of existing SF $1,900 c) Accessory Building/Fence Height $500
e) Hillside Development (avg. slope of 10% of greater) $3,100 f) Site Development Permit Amendment $1,300
5 Administrative Building Site Approval $2,800
6 Address/Street Name Change $350
7 Environmental Review
a) Exemption $350
b) Environmental Clearance
i) Reuse of Previous Environmental Clearance $350
ii) Initial Study and Negative Declaration / Mitigated Negative Declaration $3,400 iii) Initial Study and Negative Declaration / Mitigated Negative Declaration (prepared by consultant)
pass-through of actual cost plus 10%
administrative fee
iv) EIR (prepared by consultant) pass-through of actual cost plus 10% administrative fee
8 General Plan Amendment $2,800
9 Zoning Map Amendment $2,800
10 Planned Development Zoning Map Amendment $5,000
11 Annexation (excluding LAFCO Fees) $3,800
12 Reasonable Accommodation Application $360
13 Subdivision:
a) Lot Line Adjustment $1,500
b) Tentative Map Application:
i) 4 Lots or Fewer: (Tentative Parcel Map) $3,000
ii) 5 Lots or More: (Tentative Subdivision Map) $10,000 14 Use Permits:
a) General $2,800
b) Animals $500
c) Special Land Use Permit (Historic Resource) $2,800
15 Satellite Dish
a) Administrative Review $250
b) Public Hearing $500
16 Variance $2,800
17 Appeal $360
18 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $194 19 Excess Plan Review Fee (per hour - 1 hour minimum) [b] $194 Activity Description
App A - 1 Page 46 of 228
City of Monte Sereno

MASTER FEE SCHEDULE - PLANNING FEES
Activity Description Note Fee
20 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) [b] $194 21 Work Commenced without a Permit [c] 1x Base Permit Fee Notes:
[c] Amount in addition to base fee (i.e. double fees).
* The fees listed in this schedule do not include the costs of external reports required to be prepared and submitted by the applicant (e.g. arborist report, geotech report). Applicant is responsible for the preparation costs of any external reports required. Additionally, the fees in this schedule do not include any outside agency fees or costs that may apply to applicant project (e.g. County recording fees, Department of Fish and Wildlife fees, newspaper noticing fees, consulting services, attorney services). Applicant is responsible for payment of any outside agency/service provider fees that may apply to applicant project. [b] Base fees include up to three plan reviews and any typically required inspections and first re-inspections. Excess plan review fees apply beginning with the fourth plan review. Excess inspection fees apply beginning with second re-inspection. [a] Fee paid at time of building permit issuance.

App A - 2 Page 47 of 228
City of Monte Sereno

MASTER FEE SCHEDULE - PUBLIC WORKS FEES
Note Fee
1 Certificate of Compliance $1,050
2 Encroachment Permit (Administrative) $350
3 Construction Encroachment Permit Fee
a) First $50,000 of value, or any fraction thereof 5% of value b) Value Exceeding $50,000 3% of value
4 Storm Drain Fees
a) Per Lot Zoned: R-1-44 $2,450
b) Per Lot Zoned: R-1-20 $1,640
c) Per Lot Zoned: R-1-8 $810
5 Final Map
a) Parcel Map $3,000
b) Tract Map $9,000
6 Grading Plan Check Fees Bill hourly/T&M
7 Grading Permit Fees
a) Less than 50 cubic yards $265
b) 51 to 100 cubic yards $530
c) 101 to 1,000 cubic yards
i) For first 100 cubic yards or fraction thereof $530
ii) For each add'l 100 cubic yards or fraction thereof up to 1,000 cubic yards $29 d) 1,001 to 10,000 cubic yards
i) For first 1,000 cubic yards or fraction thereof $795 ii) For each add'l 1,000 cubic yards or fraction thereof up to 10,000 cubic yards $59 e) 10,001 to 100,000 cubic yards
i) For first 10,000 cubic yards or fraction thereof $1,988 ii) For each add'l 1,000 cubic yards or fraction thereof up to 100,000 cubic yards $31 f) 100,001 cubic yards or more
i) For first 100,000 cubic yards or fraction thereof $6,360 ii) For each add'l 1,000 cubic yards or fraction thereof $31 8 NPDES Compliance
a) Plan Check
i) Less than 1 Acre $350
ii) Greater than or Equal to 1 Acre $1,050
b) Site Inspection
i) Less than 1 Acre $530
ii) Greater than or Equal to 1 Acre Bill hourly/T&M with $1,000 initial deposit 9 Oversize Load Permit
a) One Day $16
b) Annual $90
10 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $265 11 Excess Plan Review Fee (per hour - 1 hour minimum) [a] $265 Activity Description
App A - 3 Page 48 of 228
City of Monte Sereno

MASTER FEE SCHEDULE - PUBLIC WORKS FEES
Activity Description Note Fee
12 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) [a] $265 13 Work Commenced without a Permit [b] 1x Base Permit Fee Notes:
[b] Amount in addition to base fee (i.e. double fees).
[a] Base fees include up to three plan reviews and any typically required inspections and first re-inspections. Excess plan review fees apply beginning with the fourth plan review. Excess inspection fees apply beginning with second re-inspection.

App A - 4 Page 49 of 228
City of Monte Sereno

MASTER FEE SCHEDULE - BUILDING FEES
Note Fee
1 Construction Tax $0.51
2 Electrical, Plumbing or Mechanical Permits:
a) Fee per Square Foot $0.11
b) Minimum fee $159
3 Solar $159
4 Demolition Permit $159
5 Building Permit: [a]
a) Valuation: $1 to $500 $23.50
b) Valuation: $501 to $2,000
i) Fee for first $500 $23.50
ii) Fee for each additional $100, or fraction thereof, to and including $2,000 $3.05 c) Valuation: $2,001 to $25,000
i) Fee for first $2,000 $69.25
ii) Fee for each additional $1,000, or fraction thereof, to and including $25,000 $14.00 d) Valuation: $25,001 to $50,000
i) Fee for first $25,000 $391.25
ii) Fee for each additional $1,000, or fraction thereof, to and including $50,000 $10.10 e) Valuation $50,001 to $100,000
i) Fee for first $50,000 $643.75
ii) Fee for each additional $1,000, or fraction thereof, to and including $100,000 $7.00 f) Valuation $100,001 to $500,000
i) Fee for first $100,000 $993.75
ii) Fee for each additional $1,000, or fraction thereof, to and including $500,000 $5.60 g) Valuation: $501,000 to $1,000,000
i) Fee for first $500,000 $3,233.75
ii) Fee for each additional $1,000, or fraction thereof, to and including $1,000,000 $4.75 h) Valuation: $1,000,001 and up
i) Fee for first $1,000,000 $5,608.75
ii) Fee for each additional $1,000, or fraction thereof $3.15 6 Plan Review Fees (In addition to building permit fees) a) Plan Review Fee (% of Building Permit Fee) 65%
b) Structural Plan Review Fee (% of Plan Review Fee) 65% c) Energy Conservation Plan Review Fee (% of Plan Review Fee) 5% d) Green Building Code Plan Review Fee (% of Plan Review Fee) 5% 7 Micro-filming / Imaging Fee (per page, in addition to building permit fees) $5 8 Strong Motion Fees:
a) Residential (per $1 of valuation) $0.00013
b) Commercial (per $1 of valuation) $0.00028
9 SB 1473 (per $25,000 of valuation) $1
10 Road Impact Fee (per $100 of valuation of permitted work) $0.49 Activity Description
App A - 5 Page 50 of 228
City of Monte Sereno

MASTER FEE SCHEDULE - BUILDING FEES
Activity Description Note Fee
11 Other Fees
a) Excess Inspection/Excess Re-inspection/Missed Inspection Fee (per inspection) $106 b) Work Commenced without a Permit [b] 1x Base Fees
c) Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1/2 hour min.) $213 d) Fee for Additional Services Required Due to Changes, Modifications, Additions, etc. [c] Actual Costs / T&M Notes:
[b] Amount in addition to base fee (i.e. double fees).
[c] In the event additional map checking, plan checking, or inspection services by the City are required by reason of changes, modifications, additions, errors, omissions, or discrepancies occasioned by the applicant or his agents or representatives, the applicant shall pay an additional fee equal to the actual cost to the City of performing the additional services.
[a] The Building Official shall establish the valuation of said improvements, and fees will be assessed according to the following fee schedule.

App A - 6 Page 51 of 228
City of Monte Sereno

MASTER FEE SCHEDULE - ADMINISTRATIVE FEES
Note Fee
1 Business License Fees
a) General Contractor $105
b) Solicitors (for profits) $105
c) Others (including subcontractors/specialty contractors) $55 2 Printed Materials and Maps
a) Photo copies/Scanned/Digital Images (per page) $0.25 b) Zoning Map $5
c) City History "Peaceful Mountain" $31
d) Design Guidelines $8
3 Alarm Soundings, within a 12-month period
a) First, Second, and Third Soundings No Charge
b) Fourth $200
c) Fifth $300
d) Subsequent Alarms $300
4 Returned Check Processing Fee
a) First Check [a] $25
b) Each Additional Check [a] $35
5 Preparation of Materials Requiring Formatting, Programming, Development, etc. 100% of Actual Cost (billed per hour; 15 minute increments)
6 City Administration Fee Added to Vendor Service Costs, if applicable (e.g. outside printing of materials)
15%
Notes:
[a] Fee set by State.

Activity Description
App A - 7 Page 52 of 228
Appendix B Illustration of Current Fees, Maximum Fees, and Proposed Fees

Services / Activities / Subject Matter Effective Date Planning Fees July 1, 2018 Public Works Fees July 1, 2018 Building Fees July 1, 2018 City of Monte Sereno ILLUSTRATION OF CURRENT FEES, MAXIMUM FEES, AND PROPOSED FEES App B - 1

City of Monte Sereno WORKING DRAFT MASTER FEE SCHEDULE - PLANNING FEES Note Current Fee Maximum Fee (2018 Fee Study) Proposed Fee 1 Planning Review of Building Permit $0 $291 $150 2 Community Planning Fee (per $1 of valuation) [a] $0.0000 $0.0036 $0.0018 3 Significant Tree Removal (referred to Site and Architecture Commission) $100 $970 $100 4 Site Development/Planned Development Permit: a) New Houses/Demo Rebuild/Remodel/Addition 50% or more of existing SF $2,450 $3,104 $2,800 b) Remodel/Addition less than 50% of existing SF $1,500 $2,328 $1,900 c) Accessory Building/Fence Height $360 $1,552 $500 e) Hillside Development (avg. slope of 10% of greater) $2,750 $3,492 $3,100 f) Site Development Permit Amendment $1,250 $1,552 $1,300 5 Administrative Building Site Approval $2,450 $3,104 $2,800 6 Address/Street Name Change $250 $388 $350 7 Environmental Review a) Exemption varies $388 $350 b) Environmental Clearance i) Reuse of Previous Environmental Clearance varies $388 $350 ii) Initial Study and Negative Declaration / Mitigated Negative Declaration varies $3,492 $3,400 iii) Initial Study and Negative Declaration / Mitigated Negative Declaration (prepared by consultant) varies varies pass-through of actual cost plus 10% administrative fee iv) EIR (prepared by consultant) varies varies pass-through of actual cost plus 10% administrative fee 8 General Plan Amendment $2,530 $3,104 $2,800 9 Zoning Map Amendment $2,530 $3,104 $2,800 10 Planned Development Zoning Map Amendment $2,530 $5,432 $5,000 11 Annexation (excluding LAFCO Fees) $2,530 $3,880 $3,800 12 Reasonable Accommodation Application $360 $1,164 $360 13 Subdivision: a) Lot Line Adjustment $1,500 $1,552 $1,500 b) Tentative Map Application: i) 4 Lots or Fewer: (Tentative Parcel Map) $2,550 + $1,360/lot $3,104 $3,000 ii) 5 Lots or More: (Tentative Subdivision Map) $3,060 + $1,360/lot $10,088 $10,000 14 Use Permits: a) General $2,450 $3,104 $2,800 b) Animals $360 $1,552 $500 Activity Description App B - 2

City of Monte Sereno WORKING DRAFT MASTER FEE SCHEDULE - PLANNING FEES Note Current Fee Maximum Fee (2018 Fee Study) Proposed Fee Activity Description c) Special Land Use Permit (Historic Resource) $2,450 $3,104 $2,800 15 Satellite Dish a) Administrative Review $55 $485 $250 b) Public Hearing $55 $970 $500 16 Variance $2,450 $3,104 $2,800 17 Appeal $360 $1,940 $360 18 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $194 $194 19 Excess Plan Review Fee (per hour - 1 hour minimum) [b] $194 $194 20 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) [b] $194 $194 21 Work Commenced without a Permit [c] 1x Base Permit Fee Notes: * The fees listed in this schedule do not include the costs of external reports required to be prepared and submitted by the applicant (e.g. arborist report, geotech report). Applicant is responsible for the preparation costs of any external reports required. Additionally, the fees in this schedule do not include any outside agency fees or costs that may apply to applicant project (e.g. County recording fees, Department of Fish and Wildlife fees, newspaper noticing fees, consulting services, attorney services). Applicant is responsible for payment of any outside agency/service provider fees that may apply to applicant project. [a] Fee paid at time of building permit issuance. [a] Base fees include up to three plan reviews and any typically required inspections and first re-inspections. Excess plan review fees apply beginning with the fourth plan review. Excess inspection fees apply beginning with second re-inspection. [b] Amount in addition to base fee (i.e. double fees). App B - 3

City of Monte Sereno WORKING DRAFT MASTER FEE SCHEDULE - PUBLIC WORKS FEES Note Current Fee Maximum Fee (2018 Fee Study) Proposed Fee 1 Certificate of Compliance $360 $2,120 $1,050 2 Encroachment Permit (Administrative) $175 $398 $350 3 Construction Encroachment Permit Fee a) First $50,000 of value, or any fraction thereof 5% of value 5% of value b) Value Exceeding $50,000 2% - 3% of value 3% of value 4 Storm Drain Fees * a) Per Lot Zoned: R-1-44 * $2,450 $2,450 b) Per Lot Zoned: R-1-20 * $1,640 $1,640 c) Per Lot Zoned: R-1-8 * $810 $810 5 Final Map a) Parcel Map n/a $3,180 $3,000 b) Tract Map n/a $9,540 $9,000 6 Grading Plan Check Fees Actual + admin varies Bill hourly/T&M 7 Grading Permit Fees a) Less than 50 cubic yards $105 $530 $265 b) 51 to 100 cubic yards $160 $1,060 $530 c) 101 to 1,000 cubic yards i) For first 100 cubic yards or fraction thereof $160 $1,060 $530 ii) For each add'l 100 cubic yards or fraction thereof up to 1,000 cubic yards $30 $59 $29 d) 1,001 to 10,000 cubic yards i) For first 1,000 cubic yards or fraction thereof $460 $1,590 $795 ii) For each add'l 1,000 cubic yards or fraction thereof up to 10,000 cubic yards $30 $118 $59 e) 10,001 to 100,000 cubic yards $0 i) For first 10,000 cubic yards or fraction thereof $760 $2,650 $1,988 ii) For each add'l 1,000 cubic yards or fraction thereof up to 100,000 cubic yards $30 $41 $31 f) 100,001 cubic yards or more i) For first 100,000 cubic yards or fraction thereof $3,460 $6,360 $6,360 ii) For each add'l 1,000 cubic yards or fraction thereof $30 $31 $31 8 NPDES Compliance a) Plan Check i) Less than 1 Acre $398 $350 ii) Greater than or Equal to 1 Acre $2,120 $1,050 Activity Description App B - 4

City of Monte Sereno WORKING DRAFT MASTER FEE SCHEDULE - PUBLIC WORKS FEES Note Current Fee Maximum Fee (2018 Fee Study) Proposed Fee Activity Description b) Site Inspection i) Less than 1 Acre $1,060 $530 ii) Greater than or Equal to 1 Acre varies Bill hourly/T&M with $1,000 initial deposit 9 Oversize Load Permit a) One Day $16 b) Annual $90 10 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) varies $265 $265 11 Excess Plan Review Fee (per hour - 1 hour minimum) n/a $265 $265 12 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) n/a $265 $265 13 Work Commenced without a Permit [a] n/a 1x Base Permit Fee Notes: [a] Amount in addition to base fee (i.e. double fees). * Not included in this study. No changes proposed. Not intended to be part of the public hearing process. Only included to avoid inadvertently excluding from schedule. App B - 5

City of Monte Sereno WORKING DRAFT MASTER FEE SCHEDULE - BUILDING FEES Note Current Fee Maximum Fee (2018 Fee Study) Proposed Fee 1 Construction Tax * $0.51 n/a $0.51 2 Electrical, Plumbing or Mechanical Permits: a) Fee per Square Foot $0.06 $0.11 $0.11 b) Minimum fee $62 $160 $159 3 Solar $0 $320 $159 4 Demolition Permit $62 $160 $159 5 Building Permit: [a] a) Valuation: $1 to $500 $23.50 $23.50 $23.50 b) Valuation: $501 to $2,000 i) Fee for first $500 $23.50 $23.50 $23.50 ii) Fee for each additional $100, or fraction thereof, to and including $2,000 $3.05 $3.05 $3.05 c) Valuation: $2,001 to $25,000 i) Fee for first $2,000 $69.25 $69.25 $69.25 ii) Fee for each additional $1,000, or fraction thereof, to and including $25,000 $14.00 $14.00 $14.00 d) Valuation: $25,001 to $50,000 i) Fee for first $25,000 $391.25 $391.25 $391.25 ii) Fee for each additional $1,000, or fraction thereof, to and including $50,000 $10.10 $10.10 $10.10 e) Valuation $50,001 to $100,000 i) Fee for first $50,000 $643.75 $643.75 $643.75 ii) Fee for each additional $1,000, or fraction thereof, to and including $100,000 $7.00 $7.00 $7.00 f) Valuation $100,001 to $500,000 i) Fee for first $100,000 $993.75 $993.75 $993.75 ii) Fee for each additional $1,000, or fraction thereof, to and including $500,000 $5.60 $5.60 $5.60 g) Valuation: $501,000 to $1,000,000 i) Fee for first $500,000 $3,233.75 $3,233.75 $3,233.75 ii) Fee for each additional $1,000, or fraction thereof, to and including $1,000,000 $4.75 $4.75 $4.75 h) Valuation: $1,000,001 and up i) Fee for first $1,000,000 $5,608.75 $5,608.75 $5,608.75 ii) Fee for each additional $1,000, or fraction thereof $3.15 $3.15 $3.15 6 Plan Review Fees (In addition to building permit fees) a) Plan Review Fee (% of Building Permit Fee) 65% 65% 65% b) Structural Plan Review Fee (% of Plan Review Fee) 65% 65% 65% Activity Description App B - 6

City of Monte Sereno WORKING DRAFT MASTER FEE SCHEDULE - BUILDING FEES Note Current Fee Maximum Fee (2018 Fee Study) Proposed Fee Activity Description c) Energy Conservation Plan Review Fee (% of Plan Review Fee) 5% 5% 5% d) Green Building Code Plan Review Fee (% of Plan Review Fee) 5% 5% 5% 7 Micro-filming / Imaging Fee (per page, in addition to building permit fees) $5 $5 $5 8 Strong Motion Fees: a) Residential (per $1 of valuation) $0.00013 n/a $0.00013 b) Commercial (per $1 of valuation) $0.00028 n/a $0.00028 9 SB 1473 (per $25,000 of valuation) $1 n/a $1 10 Road Impact Fee (per $100 of valuation of permitted work) * $0.49 n/a $0.49 11 Other Fees a) Excess Inspection/Excess Re-inspection/Missed Inspection Fee (per inspection) n/a $107 $106 b) Work Commenced without a Permit [b] n/a 1x Base Fees c) Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1/2 hour min.) n/a $213 $213 d) Fee for Additional Services Required Due to Changes, Modifications, Additions, etc. [c] Actual Costs Actual Costs / T&M Actual Costs / T&M Notes: [a] The Building Official shall establish the valuation of said improvements, and fees will be assessed according to the following fee schedule. [b] Amount in addition to base fee (i.e. double fees). [c] In the event additional map checking, plan checking, or inspection services by the City are required by reason of changes, modifications, additions, errors, omissions, or discrepancies occasioned by the applicant or his agents or representatives, the applicant shall pay an additional fee equal to the actual cost to the City of performing the additional services. * Not included in this study. No changes proposed. Not intended to be part of the public hearing process. Only included to avoid inadvertently excluding from schedule. App B - 7

Appendix C New Fees Proposed

City of Monte Sereno FEES PROPOSED TO BE ADDED TO FEE SCHEDULEProposed Fee Reason for Addition 1 Planning Review of Building Permit $150 Planning staff review certain building permits for compliance with setback requirements, previously approved plans, etc. This fee would allow staff to recover a portion of the City's review cost. Proposed fee targets 50% cost recovery. 2 Solar Permits $159 The City does not currently charge for solar permits. As solar has become more common, most communities collect solar permit fees. The proposed fees are less than solar contractors will expect to pay in most jurisdictions. Additionally the proposed fees are set to match the City's minimum permit fee and are well under maximum amounts established by the State. 3 Final Map Review a) Parcel Map $3,000 Existing fee schedule does not include a final map review fee b) Tract Map $9,000 Existing fee schedule does not include a final map review fee 4 Community Planning Fee (per $1 of valuation) $0.0018 Fee will allow the City to recover a portion of the cost of updating the plans, guidelines, and zoning documents that are used to authorize and approve development and construction within the City. Activity Description App C - 1

Appendix D Fees Proposed to Be Removed from Schedule

City of Monte Sereno FEES CATEGORIES PROPOSED TO BE REMOVED FROM SCHEDULE Reason for Removal 1 Planning Review of Secondary Dwelling Units Review no longer required. Planning will continue to review building permits for compliance with setback requirements, etc. 2 Road Impact Deposit Deposit structure is no longer used. 3 Preliminary Map Fees Service not provided by the City. Fees are collected for tentative and final map review only. 4 Real Estate Consultation Fee Fee has not been collected in the past. Staff will continue to provide general information without charge. For services requiring significant research or pre-application assistance, the fee schedule includes an hourly rate for staff services, upon request. 5 Parking Fines See Los Gatos PD. Fines are not considered user and regulatory fees. They are typically identified via a schedule of fines/penalties/bail amounts. Any parking fine amounts will by recovered via Los Gatos PD and remitted to the City. 6 Animal Control Fees See Silicon Valley Animal Control Authority. 7 Fire Protection Fees See Santa Clara County Fire. Activity Description App D - 1

Appendix E Cost of Service Analysis and Audit for Reasonableness of Outcomes

User and Regulatory Fees Fee-Related Cost of Service Analysis App E - 1

Services / Activities / Subject Matter Page Planning Fees App E: 3 - 7 Public Works Fees App E: 8 - 12 Building Fees App E: 13 - 17 Community Planning Fee App E: 18 City of Monte Sereno COST OF SERVICE ANALYSIS App E - 2

City of Monte Sereno User and Regulatory Fee Study Allocation of Annual Labor Effort - Planning Position City Planner Note Assumptions Regarding Labor Hours Annual Paid Hours Per FTE 1,820 [a] Est. Annual Leave Hours Per FTE 224 [b] Est. Productive Hours Per FTE 1,596 [c] Specific Employee Information Total FTE (or FTE Equivalent/Contractor) 1.00 Annual Salary 100,449 $ Annual Benefits 31,103 $ Contract Svcs - $ Total Annual Labor Costs 131,552 $ Salary and Wage Rate Per Paid Hour 55 $ Benefit Rate Per Paid Hour 17 $ Contract Svcs Rate Per Paid Hour - $ Total Labor Hourly Rate Per Paid Hour 72 $ Divisional Assignment Share Assigned to this Division 100% [d] Est. FTE Assigned to this Division 1.00 Annual Salary Assigned to this Division 100,449 $ Annual Benefits Assigned to this Division 31,103 $ Annual Contract Svcs Assigned to this Division - $ Total Annual Labor Costs 131,552 $ Est. Annual Hours Assigned to this Division 1,820 Est. Annual Leave Assigned to this Division 224 Est. Productive Hours Assigned to this Division 1,596 Labor Rate Per Productive Hour 82 $ App E - 3

City of Monte Sereno User and Regulatory Fee Study Allocation of Annual Labor Effort - Planning Position City Planner Note Allocation of Productive Hrs to this Division (%) Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 12% Certification and Training 2% Public Information and Assistance 21% [e] Total Indirect Activities and Svcs 35% Direct Activities and Services Code Enforcement/Compliance (Punitive) 1% Long Range Planning 5% Current Planning 39% [e] Bldg Permit Plan Review 15% Support to Other City Departments 5% Total Direct Activities and Services 65% Total 100% Allocation of Productive Hours (Hours) Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 192 Certification and Training 32 Public Information and Assistance 335 [e] Total Indirect Activities and Svcs 559 Direct Activities and Services Code Enforcement/Compliance (Punitive) 16 Long Range Planning 80 Current Planning 622 [e] Bldg Permit Plan Review 239 Support to Other Departments 80 Total Direct Activities and Services 1,037 Total 1,596 [a] Assumes 35 hours per week, 52 weeks per year (35*52 = 2,080). [b] Conservative estimate for purposes of this analysis. Actual amounts will vary by employee. Assumes 12 holidays/personal holidays, 15 vacation days, 5 sick days. [c] Productive hours represent hours available for work after accounting for annual leave. [d] Based on interviews with City staff. [e] Based on feedback from City Planner, City policies result in significant time spent providing public information and assistance prior to application submittal in order to improve submittal completeness and allow for 3-week or less turnaround time from the date of formal submittal. This effort has been assigned to current planning and estimated service times include this level of support. This results in a more conservative hourly rate outcome (i.e. lower hourly rate) and a more accurate estimate of total direct service hours associated with application processing (i.e. pre and post submittal hours). App E - 4

City of Monte Sereno User and Regulatory Fee Study Fully-Burdened Hourly Rate Calculation and Cost Recovery Analysis - Planning Labor Expenditures Description Total Notes Salaries 100,449 $ [a] Benefits 31,103 $ [a] Contract Services - $ [a] Total - Labor Expenditures 131,552 $ Share of Recurring Services/Supplies and Citywide Overhead Expenditures Description % of Direct Costs Allocation Notes Share of Svcs & Supplies and Citywide Overhead 53% 69,723 $ [b] Total Allocable ExpendituresDescription Amount % of Total Notes Labor 131,552 $ 65% Share of Recurring Services/Supplies and C'wide Overhead Exp. 69,723 $ 35% Total 201,275 $ 100% Calculation of Fully-Burdened Hourly Rate Description Annual Allocation [a] Labor Svcs/Supplies & Citywide OH Total Targeted Recovery from Fees Amount Recoverable from Fees Targeted Hourly Rate Notes Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 12% 15,786 $ 8,367 $ 24,153 $ 83% 20,066 $ 23 $ Certification and Training 2% 2,631 $ 1,394 $ 4,025 $ 83% 3,344 $ 4 $ Public Information and Assistance 21% 27,626 $ 14,642 $ 42,268 $ 83% 35,115 $ 41 $ Total Indirect Activities and Svcs 35% 46,043 $ 24,403 $ 70,446 $ 58,524 $ 68 $ Direct Activities and Services Code Enforcement/Compliance (Punitive) 1% 1,316 $ 697 $ 2,013 $ 0% - $ - $ Long Range Planning 5% 6,578 $ 3,486 $ 10,064 $ 0% - $ - $ Current Planning 39% 51,305 $ 27,192 $ 78,497 $ 100% 78,497 $ 91 $ Bldg Permit Plan Review 15% 19,733 $ 10,458 $ 30,191 $ 100% 30,191 $ 35 $ Support to Other City Departments 5% 6,578 $ 3,486 $ 10,064 $ 0% - $ - $ Total Direct Activities and Services 65% 85,509 $ 45,320 $ 130,828 $ 83% 108,688 $ 126 $ Total 100% 131,552 $ 69,723 $ 201,275 $ 83% 167,213 $ 194 $ < Hourly Rate Direct Hours 862 [a] Fee-Related Cost Recovery Analysis Direct Fee-Related Activity Hourly Rate Est. Annual Direct Hours Total Annual Costs Fee Revenue Aggregate Cost Recovery General Fund Support Req'd Notes Current Planning 194 $ 622 120,753 $ 65,282 $ 54% 55,471 $ [c] Planning Review of Building Permits 194 $ 239 46,448 $ - $ 0% 46,448 $ [c] Total 862 167,201 $ 65,282 $ 39% 101,919 $ [a] See worksheet labeled "Allocation of Annual Labor Effort - Planning". [b] Source: Indirect cost rate analysis developed as part of this study. [c] Source: Zoning Fees. App E - 5

City of Monte Sereno User and Regulatory Fee Study Planning Cost of Service Analysis and Reasonableness Audit Fee Description Est. Labor Time Hourly Rate Cost of Svc Current Fee Current Est. Cost Recovery Targeted Cost Recovery Proposed Fee Note 1 Planning Review of Building Permit 1.5 x $194 = 291 $ $0 0% 52% $150 2 Community Planning Fee (per $1 of valuation) Separate wrksht $0.0036 $0.0000 0% 50% $0.0018 3 Significant Tree Removal (referred to Site and Architecture Commission) 5.0 x $194 = 970 $ $100 10% 10% $100 4 Site Development/Planned Development Permit: a) New Houses/Demo Rebuild/Remodel/Addition 50% or more of existing SF 16.0 x $194 = 3,104 $ $2,450 79% 90% $2,800 b) Remodel/Addition less than 50% of existing SF 12.0 x $194 = 2,328 $ $1,500 64% 82% $1,900 c) Accessory Building/Fence Height 8.0 x $194 = 1,552 $ $360 23% 32% $500 e) Hillside Development (avg. slope of 10% of greater) 18.0 x $194 = 3,492 $ $2,750 79% 89% $3,100 f) Site Development Permit Amendment 8.0 x $194 = 1,552 $ $1,250 81% 84% $1,300 5 Administrative Building Site Approval 16.0 x $194 = 3,104 $ $2,450 79% 90% $2,800 6 Address/Street Name Change 2.0 x $194 = 388 $ $250 64% 90% $350 7 Environmental Review a) Exemption 2.0 x $194 = 388 $ varies varies 90% $350 b) Environmental Clearance i) Reuse of Previous Environmental Clearance 2.0 x $194 = 388 $ varies varies 90% $350 ii) Initial Study and Negative Declaration / Mitigated Negative Declaration 18.0 x $194 = 3,492 $ varies varies 97% $3,400 iii) Initial Study and Negative Declaration / Mitigated Negative Declaration (prepared by consultant) varies varies varies 100% pass-through of actual cost plus 10% administrative fee iv) EIR (prepared by consultant) varies varies varies 100% pass-through of actual cost plus 10% administrative fee 8 General Plan Amendment 16.0 x $194 = 3,104 $ $2,530 82% 90% $2,800 9 Zoning Map Amendment 16.0 x $194 = 3,104 $ $2,530 82% 90% $2,800 10 Planned Development Zoning Map Amendment 28.0 x $194 = 5,432 $ $2,530 47% 92% $5,000 11 Annexation (excluding LAFCO Fees) 20.0 x $194 = 3,880 $ $2,530 65% 98% $3,800 12 Reasonable Accommodation Application 6.0 x $194 = 1,164 $ $360 31% 31% $360 13 Subdivision: a) Lot Line Adjustment 8.0 x $194 = 1,552 $ $1,500 97% 97% $1,500 b) Tentative Map Application: i) 4 Lots or Fewer: (Tentative Parcel Map) 16.0 x $194 = 3,104 $ $2,550 + $1,360/lot varies 97% $3,000 ii) 5 Lots or More: (Tentative Subdivision Map) 52.0 x $194 = 10,088 $ $3,060 + $1,360/lot varies 99% $10,000 14 Use Permits: a) General 16.0 x $194 = 3,104 $ $2,450 79% 90% $2,800 b) Animals 8.0 x $194 = 1,552 $ $360 23% 32% $500 c) Special Land Use Permit (Historic Resource) 16.0 x $194 = 3,104 $ $2,450 79% 90% $2,800 15 Satellite Dish a) Administrative Review 2.5 x $194 = 485 $ $55 11% 52% $250 b) Public Hearing 5.0 x $194 = 970 $ $55 6% 52% $500 16 Variance 16.0 x $194 = 3,104 $ $2,450 79% 90% $2,800 17 Appeal 10.0 x $194 = 1,940 $ $360 19% 19% $360 18 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) 1.0 x $194 = 194 $ 100% $194 19 Excess Plan Review Fee (per hour - 1 hour minimum) 1.0 x $194 = 194 $ 100% $194 20 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) 1.0 x $194 = 194 $ 100% $194 21 Work Commenced without a Permit 1x Base Permit Fee App E - 6

City of Monte Sereno User and Regulatory Fee Study Planning Cost of Service Analysis and Reasonableness Audit Fee Description 1 Planning Review of Building Permit 2 Community Planning Fee (per $1 of valuation) 3 Significant Tree Removal (referred to Site and Architecture Commission) 4 Site Development/Planned Development Permit: a) New Houses/Demo Rebuild/Remodel/Addition 50% or more of existing SF b) Remodel/Addition less than 50% of existing SF c) Accessory Building/Fence Height e) Hillside Development (avg. slope of 10% of greater) f) Site Development Permit Amendment 5 Administrative Building Site Approval 6 Address/Street Name Change 7 Environmental Review a) Exemption b) Environmental Clearance i) Reuse of Previous Environmental Clearance ii) Initial Study and Negative Declaration / Mitigated Negative Declaration iii) Initial Study and Negative Declaration / Mitigated Negative Declaration (prepared by consultant) iv) EIR (prepared by consultant) 8 General Plan Amendment 9 Zoning Map Amendment 10 Planned Development Zoning Map Amendment 11 Annexation (excluding LAFCO Fees) 12 Reasonable Accommodation Application 13 Subdivision: a) Lot Line Adjustment b) Tentative Map Application: i) 4 Lots or Fewer: (Tentative Parcel Map) ii) 5 Lots or More: (Tentative Subdivision Map) 14 Use Permits: a) General b) Animals c) Special Land Use Permit (Historic Resource) 15 Satellite Dish a) Administrative Review b) Public Hearing 16 Variance 17 Appeal 18 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) 19 Excess Plan Review Fee (per hour - 1 hour minimum) 20 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) 21 Work Commenced without a Permit Target Annual Volume Est Annual Hours Revenue Analysis at Current Fees Revenue Analysis at Full Cost Recovery Revenue Analysis at Proposed Fees 125 188 - $ 36,375 $ 18,750 $ 33 165 3,300 $ 32,010 $ 3,300 $ 10 160 24,500 $ 31,040 $ 28,000 $ 6 72 9,000 $ 13,968 $ 11,400 $ 6 48 2,160 $ 9,312 $ 3,000 $ 3 54 8,250 $ 10,476 $ 9,300 $ 1 8 1,250 $ 1,552 $ 1,300 $ 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 1 18 2,530 $ 3,492 $ 3,400 $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 1 16 2,530 $ 3,104 $ 2,800 $ 1 16 2,530 $ 3,104 $ 2,800 $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 2 16 3,000 $ 3,104 $ 3,000 $ 1 16 2,550 $ 3,104 $ 3,000 $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 1 16 2,450 $ 3,104 $ 2,800 $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 793 64,050 $ 153,745 $ 92,850 $ Reasonable >>> Yes Yes Yes Yes Support Note >>> see hrly rate see actual rev see hrly rate < 100% target App E - 7

City of Monte Sereno User and Regulatory Fee Study Allocation of Annual Labor Effort - Public Works Engineering/Private Land Development/Encroachments Position Principal Engineer Note Assumptions Regarding Labor Hours Annual Paid Hours Per FTE 1,820 [a],[d] Est. Annual Leave Hours Per FTE 224 [b],[d] Est. Productive Hours Per FTE 1,596 [c],[d] Specific Employee Information Total FTE (or FTE Equivalent/Contractor) 1.00 Annual Salary 151,426 $ [e] Annual Benefits 69,834 $ [e] Contract Svcs - $ Total Annual Labor Costs 221,260 $ Salary and Wage Rate Per Paid Hour 83 $ Benefit Rate Per Paid Hour 38 $ Contract Svcs Rate Per Paid Hour - $ Total Labor Hourly Rate Per Paid Hour 122 $ Divisional Assignment Share Assigned to this Division 100% Est. FTE Assigned to this Division 1.00 Annual Salary Assigned to this Division 151,426 $ Annual Benefits Assigned to this Division 69,834 $ Annual Contract Svcs Assigned to this Division - $ Total Annual Labor Costs 221,260 $ Est. Annual Hours Assigned to this Division 1,820 Est. Annual Leave Assigned to this Division 224 Est. Productive Hours Assigned to this Division 1,596 Labor Rate Per Productive Hour 139 $ App E - 8

City of Monte Sereno User and Regulatory Fee Study Allocation of Annual Labor Effort - Public Works Engineering/Private Land Development/Encroachments Position Principal Engineer Note Allocation of Productive Hrs to this Division (%) Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 12% Certification and Training 2% Public Information and Assistance 6% [f] Total Indirect Activities and Svcs 20% Direct Activities and Services Public Projects 40% [f] Private Land Development / Encroachments 40% [f] Total Direct Activities and Services 80% Total 100% Allocation of Productive Hours (Hours) Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 192 Certification and Training 32 Public Information and Assistance 96 [e] Total Indirect Activities and Svcs 319 Direct Activities and Services Public Projects 638 Private Land Development / Encroachments 638 Total Direct Activities and Services 1,277 Total 1,596 [a] Assumes 35 hours per week, 52 weeks per year (35*52 = 2,080). [b] Conservative estimate for purposes of this analysis. Actual amounts will vary by employee. Assumes 12 holidays/personal holidays, 15 vacation days, 5 sick days. [c] Productive hours represent hours available for work after accounting for annual leave. [d] The City currently uses a contract service provider for Engineering services. Beginning FY 18/19 the City anticipates transitioning to in-house staff. This analysis assumes in-house staff. [e] Estimated labor costs are set to match the City's Building Official. [f] Based on feedback from City existing contract engineering service providers. App E - 9

City of Monte Sereno User and Regulatory Fee Study Fully-Burdened Hourly Rate Calculation and Cost Recovery Analysis - Public Works Engineering/Private Land Development/Encroachments Labor Expenditures Description Total Notes Salaries 151,426 $ [a] Benefits 69,834 $ [a] Contract Services - $ [a] Total - Labor Expenditures 221,260 $ Share of Recurring Services/Supplies and Citywide Overhead Expenditures Description % of Direct Costs Allocation Notes Share of Svcs & Supplies and Citywide Overhead 53% 117,268 $ [b] Total Allocable ExpendituresDescription Amount % of Total Notes Labor 221,260 $ 65% Share of Recurring Services/Supplies and C'wide Overhead Exp. 117,268 $ 35% Total 338,528 $ 100% Calculation of Fully-Burdened Hourly Rate Description Annual Allocation [a] Labor Svcs/Supplies & Citywide OH Total Targeted Recovery from Fees Amount Recoverable from Fees Targeted Hourly Rate Notes Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 12% 26,551 $ 14,072 $ 40,623 $ 50% 20,312 $ 32 $ Certification and Training 2% 4,425 $ 2,345 $ 6,771 $ 50% 3,385 $ 5 $ Public Information and Assistance 6% 13,276 $ 7,036 $ 20,312 $ 50% 10,156 $ 16 $ Total Indirect Activities and Svcs 20% 44,252 $ 23,454 $ 67,706 $ 33,853 $ 53 $ Direct Activities and Services Public Projects 40% 88,504 $ 46,907 $ 135,411 $ 0% - $ - $ Private Land Development / Encroachments 40% 88,504 $ 46,907 $ 135,411 $ 100% 135,411 $ 212 $ Total Direct Activities and Services 80% 177,008 $ 93,814 $ 270,822 $ 50% 135,411 $ 212 $ Total 100% 221,260 $ 117,268 $ 338,528 $ 50% 169,264 $ 265 $ < Hourly Rate Direct Hours 638 [a] Fee-Related Cost Recovery Analysis Direct Fee-Related Activity Hourly Rate Est. Annual Direct Hours Total Annual Costs Fee Revenue Aggregate Cost Recovery General Fund Support Req'd Notes Private Land Development/Encroachments 265 $ 638 169,176 $ 55,297 $ 33% 113,879 $ [c] [a] See worksheet labeled "Allocation of Annual Labor Effort - Planning". [b] Source: Indirect cost rate analysis developed as part of this study. [c] Source: Grading permits; encroachments. App E - 10

City of Monte Sereno User and Regulatory Fee Study Private Land Development/Encroachments Cost of Service Analysis and Reasonableness Audit Fee Description Est. Labor Time Hourly Rate Cost of Svc Current Fee Current Est. Cost Recovery Targeted Cost Recovery Proposed Fee Note 1 Certificate of Compliance 8.0 $265 = 2,120 $ $360 17% 50% $1,050 2 Encroachment Permit (Administrative) 1.5 x $265 = 398 $ $175 44% 88% $350 3 Construction Encroachment Permit Fee a) First $50,000 of value, or any fraction thereof varies: x $265 = varies: 5% of value varies: 5% of value b) Value Exceeding $50,000 varies: x $265 = varies: 2% - 3% of value varies: 3% of value 4 Storm Drain Fees [a] a) Per Lot Zoned: R-1-44 $2,450 $2,450 [a] b) Per Lot Zoned: R-1-20 $1,640 $1,640 [a] c) Per Lot Zoned: R-1-8 $810 $810 [a] 5 Final Map a) Parcel Map 12.0 x $265 = 3,180 $ n/a 94% $3,000 b) Tract Map 36.0 x $265 = 9,540 $ n/a 94% $9,000 6 Grading Plan Check Fees varies x $265 = varies Actual + admin varies 100% Bill hourly/T&M 7 Grading Permit Fees a) Less than 50 cubic yards 2.0 x $265 = 530 $ $105 20% 50% $265 b) 51 to 100 cubic yards 4.0 x $265 = 1,060 $ $160 15% 50% $530 c) 101 to 1,000 cubic yards i) For first 100 cubic yards or fraction thereof 4.0 x $265 = 1,060 $ $160 15% 50% $530 ii) For each add'l 100 cubic yards or fraction 0.22 x $265 = 59 $ $30 51% 50% $29 d) 1,001 to 10,000 cubic yards i) For first 1,000 cubic yards or fraction thereof 6.0 x $265 = 1,590 $ $460 29% 50% $795 ii) For each add'l 1,000 cubic yards or fraction 0.4 x $265 = 118 $ $30 25% 50% $59 e) 10,001 to 100,000 cubic yards i) For first 10,000 cubic yards or fraction thereof 10.0 x $265 = 2,650 $ $760 29% 75% $1,988 ii) For each add'l 1,000 cubic yards or fraction 0.16 x $265 = 41 $ $30 73% 75% $31 f) 100,001 cubic yards or more i) For first 100,000 cubic yards or fraction thereof 24.0 x $265 = 6,360 $ $3,460 54% 100% $6,360 ii) For each add'l 1,000 cubic yards or fraction 0.12 x $265 = 31 $ $30 97% 100% $31 8 NPDES Compliance a) Plan Check i) Less than 1 Acre 1.5 x $265 = 398 $ varies 58% 88% $350 ii) Greater than or Equal to 1 Acre 8.0 x $265 = 2,120 $ varies 11% 50% $1,050 b) Site Inspection i) Less than 1 Acre 4.0 x $265 = 1,060 $ varies 37% 50% $530 ii) Greater than or Equal to 1 Acre varies x $265 = varies varies varies 100% Bill hourly/T&M with $1,000 initial deposit 9 Oversize Load Permit a) One Day $16 [b] b) Annual $90 [b] 10 Hourly Rate for Services Not Listed in this Fee Schedule (per 1.0 x $265 = 265 $ varies 100% $265 11 Excess Plan Review Fee (per hour - 1 hour minimum) 1.0 x $265 = 265 $ n/a 100% $265 12 Excess Inspection/Re-inspection/Missed Inspection Fee (per 1.0 x $265 = 265 $ n/a 100% $265 13 Work Commenced without a Permit n/a 100% 1x Base Permit Fee Notes: [a] Not included in this study. No changes proposed. [b] Fees set to match CalTrans. App E - 11

City of Monte Sereno User and Regulatory Fee Study Private Land Development/Encroachments Cost of Service Analysis and Reasonableness Audit Fee Description 1 Certificate of Compliance 2 Encroachment Permit (Administrative) 3 Construction Encroachment Permit Fee a) First $50,000 of value, or any fraction thereof b) Value Exceeding $50,000 4 Storm Drain Fees a) Per Lot Zoned: R-1-44 b) Per Lot Zoned: R-1-20 c) Per Lot Zoned: R-1-8 5 Final Map a) Parcel Map b) Tract Map 6 Grading Plan Check Fees 7 Grading Permit Fees a) Less than 50 cubic yards b) 51 to 100 cubic yards c) 101 to 1,000 cubic yards i) For first 100 cubic yards or fraction thereof ii) For each add'l 100 cubic yards or fraction d) 1,001 to 10,000 cubic yards i) For first 1,000 cubic yards or fraction thereof ii) For each add'l 1,000 cubic yards or fraction e) 10,001 to 100,000 cubic yards i) For first 10,000 cubic yards or fraction thereof ii) For each add'l 1,000 cubic yards or fraction f) 100,001 cubic yards or more i) For first 100,000 cubic yards or fraction thereof ii) For each add'l 1,000 cubic yards or fraction 8 NPDES Compliance a) Plan Check i) Less than 1 Acre ii) Greater than or Equal to 1 Acre b) Site Inspection i) Less than 1 Acre ii) Greater than or Equal to 1 Acre 9 Oversize Load Permit a) One Day b) Annual 10 Hourly Rate for Services Not Listed in this Fee Schedule (per 11 Excess Plan Review Fee (per hour - 1 hour minimum) 12 Excess Inspection/Re-inspection/Missed Inspection Fee (per 13 Work Commenced without a Permit Notes: [a] Not included in this study. No changes proposed. [b] Fees set to match CalTrans. Target Annual Volume Est Annual Hours Revenue Analysis at Current Fees Revenue Analysis at Full Cost Recovery Revenue Analysis at Proposed Fees 2 16 720 $ 4,240 $ 2,100 $ 26 39 4,550 $ 10,335 $ 9,100 $ 24 72 6,000 $ 19,080 $ 6,000 $ 2 16 3,000 $ 4,240 $ 3,000 $ 2 16 6,360 $ 4,240 $ - $ - $ 36 108 9,000 $ 28,620 $ 28,620 $ 0 0 - $ - $ - $ 11 43 1,728 $ 11,448 $ 5,724 $ 11 43 1,728 $ 11,448 $ 5,724 $ 11 2 324 $ 636 $ 318 $ 7 43 3,312 $ 11,448 $ 5,724 $ 7 3 216 $ 848 $ 424 $ 7 72 5,472 $ 19,080 $ 14,310 $ 7 1 216 $ 297 $ 223 $ 0 0 - $ - $ - $ 0 0 - $ - $ - $ 24 36 5,568 $ 9,540 $ 8,400 $ 2 16 464 $ 4,240 $ 2,100 $ 24 96 9,384 $ 25,440 $ 12,720 $ 2 16 782 $ 4,240 $ 4,240 $ 639 52,464 $ 171,540 $ 112,967 $ Reasonable >>> Yes Yes Yes Yes Support Note >>> see hrly rate see actual rev see hrly rate < 100% target App E - 12

City of Monte Sereno User and Regulatory Fee Study Allocation of Annual Labor Effort - Building Position Building Official Admin Clerk Contract PC Svcs Total Note Assumptions Regarding Labor Hours Annual Paid Hours Per FTE 1,820 1,820 311 3,951 [a] Est. Annual Leave Hours Per FTE 224 224 - 448 [b] Est. Productive Hours Per FTE 1,596 1,596 311 3,503 [c] Specific Employee Information Total FTE (or FTE Equivalent/Contractor) 1.00 1.00 1.00 Annual Salary 151,426 $ 69,834 $ - $ 221,260 $ Annual Benefits 69,834 $ 25,247 $ - $ 95,081 $ Contract Svcs - $ - $ 42,000 $ 42,000 $ Total Annual Labor Costs 221,260 $ 95,081 $ 42,000 $ 358,341 $ Salary and Wage Rate Per Paid Hour 83 $ 38 $ - $ Benefit Rate Per Paid Hour 38 $ 14 $ - $ Contract Svcs Rate Per Paid Hour - $ - $ 135 $ Total Labor Hourly Rate Per Paid Hour 122 $ 52 $ 135 $ Divisional Assignment Share Assigned to this Division 100% 33% 100% [d] Est. FTE Assigned to this Division 1.00 0.33 1.00 Annual Salary Assigned to this Division 151,426 $ 23,045 $ - $ 174,471 $ Annual Benefits Assigned to this Division 69,834 $ 8,332 $ - $ 78,166 $ Annual Contract Svcs Assigned to this Division - $ - $ 42,000 $ 42,000 $ Total Annual Labor Costs 221,260 $ 31,377 $ 42,000 $ 294,637 $ Est. Annual Hours Assigned to this Division 1,820 601 311 2,732 Est. Annual Leave Assigned to this Division 224 74 - 298 Est. Productive Hours Assigned to this Division 1,596 527 311 2,434 Labor Rate Per Productive Hour 139 $ 60 $ 135 $ 121 $ App E - 13

City of Monte Sereno User and Regulatory Fee Study Allocation of Annual Labor Effort - Building Position Building Official Admin Clerk Contract PC Svcs Total Note Allocation of Productive Hrs to this Division (%) Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 8% 0% 0% 6% Certification and Training 1% 0% 0% 1% Public Information and Assistance 22% 25% 0% 19% Total Indirect Activities and Svcs 31% 25% 0% 26% Direct Activities and Services Code Enforcement/Compliance (Punitive) 2% 0% 0% 2% Bldg Permit Processing/Plan Check/Review 67% 75% 100% 73% Total Direct Activities and Services 69% 75% 100% 74% Total 100% 100% 100% 100% Allocation of Productive Hours (Hours) Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 128 - - 128 Certification and Training 16 - - 16 Public Information and Assistance 351 132 - 483 Total Indirect Activities and Svcs 495 132 - 626 Direct Activities and Services Code Enforcement/Compliance (Punitive) 32 - - 32 Bldg Permit Processing/Plan Check/Review 1,069 395 311 1,775 Total Direct Activities and Services 1,101 395 311 1,807 Total 1,596 527 311 2,434 [a] Assumes 35 hours per week, 52 weeks per year (35*52 = 2,080). [b] Conservative estimate for purposes of this analysis. Actual amounts will vary by employee. Assumes 12 holidays/personal holidays, 15 vacation days, 5 sick days. [c] Productive hours represent hours available for work after accounting for annual leave. [d] Source: FY 17/18 budgeted payroll. App E - 14

City of Monte Sereno User and Regulatory Fee Study Fully-Burdened Hourly Rate Calculation and Cost Recovery Analysis - Building Labor Expenditures Description Total Notes Salaries 174,471 $ [a] Benefits 78,166 $ [a] Contract Services 42,000 $ [a] Total - Labor Expenditures 252,637 $ Share of Recurring Services/Supplies and Citywide Overhead Expenditures Description % of Direct Costs Allocation Notes Share of Svcs & Supplies and Citywide Overhead 53% 133,897 $ [b] Total Allocable ExpendituresDescription Amount % of Total Notes Labor 252,637 $ 65% Share of Recurring Services/Supplies and C'wide Overhead Exp. 133,897 $ 35% Total 386,534 $ 100% Calculation of Fully-Burdened Hourly Rate Description Annual Allocation [a] Labor Svcs/Supplies & Citywide OH Total Targeted Recovery from Fees Amount Recoverable from Fees Targeted Hourly Rate Notes Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 6% 15,178 $ 8,044 $ 23,222 $ 98% 22,751 $ 13 $ Certification and Training 1% 1,897 $ 1,006 $ 2,903 $ 98% 2,844 $ 2 $ Public Information and Assistance 19% 48,464 $ 25,686 $ 74,150 $ 98% 72,647 $ 41 $ Total Indirect Activities and Svcs 26% 65,539 $ 34,736 $ 100,275 $ 98,241 $ 55 $ Direct Activities and Services Code Enforcement/Compliance (Punitive) 2% 3,794 $ 2,011 $ 5,805 $ 0% - $ - $ Bldg Permit Processing/Plan Check/Review 73% 183,303 $ 97,151 $ 280,454 $ 100% 280,454 $ 158 $ Total Direct Activities and Services 74% 187,098 $ 99,162 $ 286,259 $ 98% 280,454 $ 158 $ Total 100% 252,637 $ 133,897 $ 386,534 $ 98% 378,695 $ 213 $ < Hourly Rate Direct Hours 1,775 [a] Fee-Related Cost Recovery Analysis Direct Fee-Related Activity Hourly Rate Est. Annual Direct Hours Total Annual Costs Fee Revenue Aggregate Cost Recovery General Fund Support Req'd Notes Building Division Permitting, Plan Check, Inspection 213 $ 1,775 378,145 $ 312,555 $ 83% 65,590 $ [c] [a] See worksheet labeled "Allocation of Annual Labor Effort - Building". [b] Source: Indirect cost rate analysis developed as part of this study. [c] Source: Construction permits. App E - 15

City of Monte Sereno User and Regulatory Fee Study Building Cost of Service Analysis and Reasonableness Audit Fee Description Est. Labor Time Hourly Rate Cost of Svc Current Fee Current Est. Cost Recovery Targeted Cost Recovery Proposed Fee Note 1 Electrical Plumbing or Mechanical Permits a) Per Permit 0.75 x $213 = 160 $ $62 39% 100% $159 b) Per Square Foot 0.001 x $213 = 0.11 $ $0.06 56% 100% $0.11 2 Solar 1.50 x $213 = 320 $ $0 0% 100% $159 3 Demolition Permit 0.75 x $213 = 160 $ $62 39% 100% $159 4 Building Permits and Plan Check Fees [see table below for add'l details] 1,140 x $213 = 242,820 $ $243,366 100% 100% $242,820 5 Microfilm = 5 $ $5 100% 100% $5 Fee Description Est. Labor Time (Bldg Permit and PC Only) Hourly Rate Cost of Svc 6 Sample Building Permit and Plan Review Categories a) Valuation Less than $5,000 0.50 x $213 = 107 $ b) Valuation $5,000 to $15,000 (e.g. repair and bathroom remodels) 1.5 - 2.5 hours x $213 = 426 $ c) Valuation $15,000 to $50,000 (e.g. remodel bathroom ; pool; kitchen) 2.5 - 5 hours x $213 = 852 $ d) Valuation $75,000 or greater (e.g. additions ; add/remod; new structures) 8+ hours x $213 = 3,408 $ Reasonable >>> Yes Support Note Reasonable >>> Notes: [a] Source: FY 16/17 actual permits issued. Current fees capture these costs; hours increase as complexity increases; consistent fees for similar projects; total hours do not exceed available annual hours. See building permit history sheet. App E - 16

City of Monte Sereno User and Regulatory Fee Study Building Cost of Service Analysis and Reasonableness Audit Fee Description 1 Electrical Plumbing or Mechanical Permits a) Per Permit b) Per Square Foot 2 Solar 3 Demolition Permit 4 Building Permits and Plan Check Fees [see table below for add'l details] 5 Microfilm Fee Description 6 Sample Building Permit and Plan Review Categories a) Valuation Less than $5,000 b) Valuation $5,000 to $15,000 (e.g. repair and bathroom remodels) c) Valuation $15,000 to $50,000 (e.g. remodel bathroom ; pool; kitchen) d) Valuation $75,000 or greater (e.g. additions ; add/remod; new structures) Notes: [a] Source: FY 16/17 actual permits issued. Target Annual Volume Est Annual Hours Revenue Analysis at Current Fees Revenue Analysis at Full Cost Recovery Revenue Analysis at Proposed Fees Note 437 328 27,094 $ 69,811 $ 69,483 $ [a] 0 0 - $ - $ - $ [a] 20 30 - $ 6,390 $ 3,180 $ [a] 4 3 248 $ 639 $ 636 $ [a] 132 1,140 243,366 $ 242,820 $ 242,820 $ [a] 1,133 0 5,665 $ 5,665 $ 5,665 $ 1,501 276,373 $ 325,325 $ 321,784 $ Reasonable >>> Yes Yes Yes Yes Support Note >>> see hrly rate see actual rev see hrly rate 100% recovery target Support Clarification >>> Actual revenue = $312K, actual hours = 1,775. Pro-rating both amounts results in full cost recovery (i.e. adjust minimum permit fee and trade permit fees but leave building permit fees unchanged). App E - 17

City of Monte Sereno User and Regulatory Fee Study Community Planning Fee Cost of Service Analysis Description Total Amortization / Update Frequency Annual Cost Notes Estimated In-House Annual Labor Costs 10,064 $ 1 10,064 $ [a] Housing Update 50,000 $ 8 6,250 $ [b] General Plan Update 750,000 $ 15 50,000 $ [b] Total 66,314 $ Calculation of Fee at Full Cost Recovery Description Total Notes Annual Revenue Requirement 66,314 $ Est. Annual Construction Valuation 18,593,667 $ [c][d] Community Planning Fee as a % of Construction Valuation 0.36% Cost Recovery Analysis Description Current Fee Fee at Full Cost Recovery Current Cost Recovery Proposed Cost Recovery Proposed Fee Community Planning Fee 0.00% 0.36% 0% 50% 0.18% [a] See Planning Hourly Rate Calculation and Annual Allocation of Labor Time worksheets. [b] Conservative estimates of Housing Update and General Plan Update Costs. Actual amounts will likely be higher than amounts shown. [c] Source: FY 16/17 construction permit valuation. Amounts will vary annually. [d] For administrative efficiency the fee will be collected as part of the building permit fee. The vast majority of planning fee-related services, and engineering fee-related services are associated with active building permit applications or will ultimately lead to building permit applications. Permit valuation is a readily available metric that provides a reasonable correlation to cost on a repeatable basis (i.e. more complex projects have higher valuations, and typically rely more heavily on community planning documents for approval (e.g. drainage standards, zoning code, General Plan elements). App E - 18

RESOLUTION NO.

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

ADOPTING AN UPDATED SCHEDULE OF USER AND REGULATORY FEES WHEREAS, the City Council established user and regulatory fees to offset costs of providing various services that are of benefit to applicants or service recipients, and WHEREAS, a comprehensive user and regulatory fee study and supporting documentation was prepared in 2018 which provides adequate evidence to conclude that City fees and charges, as adopted by Resolution 3682, do not exceed the cost to provide the services for which the fees are charged; and WHEREAS, the City Council has raised such fees and charges to reflect increased costs of service based on inflation, as adopted in September 2022 by Resolution No. 22-3863 and in June 2023 by Resolution No. 23-3885; and WHEREAS, based on the recommendation of staff, City Council desires to increase such fees based on the Consumer Price Index, San Francisco Area rate of

2.6% for 2023, due to the increases to the City of providing the services set forth in the schedule of fees; and
WHEREAS, based on the analysis provided by staff, the City Council determines that the fees proposed will not exceed the estimated cost of providing service; and WHEREAS, this hearing to set fees was duly noticed pursuant to Government Code Section 66016.

NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MONTE SERENO AS FOLLOWS:

Section 1. Each recital above is hereby adopted as a specific finding of this City Council.

Section 2. The City Council hereby adopts the schedule of fees as set forth in attached Exhibit "A" and incorporated by this reference.

REGULARLY APPROVED this 4th day of June 2024 by the following roll call vote:

Ayes:

Noes:

Abstain:

Absent:
______________________________
BY: Evert Wolsheimer, Mayor
ATTEST:

______________________________
Gloisy Gonzalez-Langarica, City Clerk

EXHIBIT A

Services / Activities / Subject Matter Effective Date Page Planning Fees August 5, 2024 1 - 2
Public Works Fees August 5, 2024 3 - 4
Building Fees August 5, 2024 5 - 6
Administrative Services August 5, 2024 7
City of Monte Sereno

MASTER FEE SCHEDULE

City of Monte Sereno
MASTER FEE SCHEDULE - PLANNING FEES - EFFECTIVE AUGUST 5, 2024* Note Current Fee Proposed Fee
1 Planning Review of Building Permit $168 $187
2 Community Planning Fee (per $1 of valuation) [a] $0.0020 $0.0023 3 Significant Tree Removal (referred to Site and Architecture Commission) $100 $117 4 Site Development/Planned Development Permit:
a) New Houses/Demo Rebuild/Remodel/Addition 50% or more of existing SF $3,185 $3,557 b) Remodel/Addition less than 50% of existing SF $2,160 $2,410 c) Accessory Building/Fence Height $565 $632
e) Hillside Development (avg. slope of 10% of greater) $3,535 $3,942 f) Site Development Permit Amendment $1,475 $1,650
5 Administrative Building Site Approval $3,185 $3,557
6 Address/Street Name Change $395 $445
7 Environmental Review
a) Exemption $395 $445
b) Environmental Clearance
i) Reuse of Previous Environmental Clearance $3,440 $3,837 ii) Initial Study and Negative Declaration / Mitigated Negative Declaration $3,871 $4,317 iii) Initial Study and Negative Declaration / Mitigated Negative Declaration (prepared by consultant)
pass-through of actual
cost plus 10%
pass-through of actual
cost plus 10%
iv) EIR (prepared by consultant) pass-through of actual cost plus 10%
pass-through of actual
cost plus 10%
8 General Plan Amendment $3,185 $3,557
9 Zoning Map Amendment $3,185 $3,557
10 Planned Development Zoning Map Amendment $5,695 $6,353 11 Annexation (excluding LAFCO Fees) $4,330 $4,832
12 Reasonable Accommodation Application $405 $456
13 Subdivision:
a) Lot Line Adjustment $1,710 $1,907
b) Tentative Map Application:
i) 4 Lots or Fewer: (Tentative Parcel Map) $3,420 $3,814 ii) 5 Lots or More: (Tentative Subdivision Map) $11,400 $12,717 c) SB9 Urban Lot Split N/A $4,975
14 Use Permits:
a) General $3,285 $3,557
b) Animals $500 $585
c) Special Land Use Permit (Historic Resource) $3,185 $3,557 15 Satellite Dish
a) Administrative Review $280 $316
b) Public Hearing $565 $632
16 Variance $3,185 $3,557
17 Appeal $360 $421
18 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $221 $247 19 Excess Plan Review Fee (per hour - 1 hour minimum) [b] $221 $247 20 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) [b] $221 $247 21 Work Commenced without a Permit [c] 1x Base Permit Fee 1x Base Permit Fee Activity Description

City of Monte Sereno
MASTER FEE SCHEDULE - PLANNING FEES - EFFECTIVE AUGUST 5, 2024* Activity Description Note Current Fee Proposed Fee
Notes:
[c] Amount in addition to base fee (i.e. double fees).
* The fees listed in this schedule are rounded off and do not include the costs of external reports required to be prepared and submitted by the applicant (e.g. arborist report, geotech report). Applicant is responsible for the preparation costs of any external reports required. Additionally, the fees in this schedule do not include any outside agency fees or costs that may apply to applicant project (e.g. County recording fees, Department of Fish and Wildlife fees, newspaper noticing fees, consulting services, attorney [b] Base fees include up to three plan reviews and any typically required inspections and first re-inspections. Excess plan review fees apply beginning with the fourth plan review. Excess inspection fees apply beginning with second re-inspection. [a] Fee paid at time of building permit issuance.

City of Monte Sereno
MASTER FEE SCHEDULE - PUBLIC WORKS FEES - EFFECTIVE AUGUST 5, 2024* Note Current Fee Proposed Fee
1 Certificate of Compliance $1,195 $1,228
2 Encroachment Permit (Administrative) $395 $409
3 Construction Encroachment Permit Fee
a) First $50,000 of value, or any fraction thereof 5% of value 5% of value b) Value Exceeding $50,000 3% of value 3% of value
4 Storm Drain Fees
a) Per Lot Zoned: R-1-44 $2,790 $2,866
b) Per Lot Zoned: R-1-20 $1,865 $1,919
c) Per Lot Zoned: R-1-8 $920 $948
5 Final Map
a) Parcel Map $3,420 $3,510
b) Tract Map $10,255 $10,529
6 Grading Plan Check Fees Bill hourly/T&M Bill hourly/T&M 7 Grading Permit Fees
a) Less than 50 cubic yards $300 $310
b) 51 to 100 cubic yards $600 $620
c) 101 to 1,000 cubic yards
i) For first 100 cubic yards or fraction thereof $600 $620 ii) For each add'l 100 cubic yards or fraction thereof up to 1,000 cubic yards $34 $34 d) 1,001 to 10,000 cubic yards
i) For first 1,000 cubic yards or fraction thereof $906 $930 ii) For each add'l 1,000 cubic yards or fraction thereof up to 10,000 cubic yards $67 $155 e) 10,001 to 100,000 cubic yards
i) For first 10,000 cubic yards or fraction thereof $1,509 $2,325 ii) For each add'l 1,000 cubic yards or fraction thereof up to 100,000 cubic yards $36 $568 f) 100,001 cubic yards or more
i) For first 100,000 cubic yards or fraction thereof $4,749 $7,441 ii) For each add'l 1,000 cubic yards or fraction thereof $36 $36 8 NPDES Compliance
a) Plan Check
i) Less than 1 Acre $395 $409
ii) Greater than or Equal to 1 Acre $1,195 $1,228
b) Site Inspection
i) Less than 1 Acre $595 $620
ii) Greater than or Equal to 1 Acre Bill hourly/T&M with $1,000 initial deposit
Bill hourly/T&M with
$1,000 initial deposit
9 Oversize Load Permit
a) One Day $16 $19
b) Annual $90 $105
10 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $302 $310 11 Excess Plan Review Fee (per hour - 1 hour minimum) [a] $302 $310 12 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) [a] $302 $310 Activity Description

City of Monte Sereno
MASTER FEE SCHEDULE - PUBLIC WORKS FEES - EFFECTIVE AUGUST 5, 2024* Activity Description Note Current Fee Proposed Fee
13 Work Commenced without a Permit [b] 1x Base Permit Fee 1x Base Permit Fee Notes:
* The fees listed in this schedule are rounded off.
[b] Amount in addition to base fee (i.e. double fees).
[a] Base fees include up to three plan reviews and any typically required inspections and first re-inspections. Excess plan review fees apply beginning with the fourth plan review. Excess inspection fees apply beginning with second re-inspection.

City of Monte Sereno
MASTER FEE SCHEDULE - BUILDING FEES - EFFECTIVE AUGUST 5, 2024* Note Current Fee Proposed Fee
1 Construction Tax $0.51 $0.51
2 Electrical, Plumbing or Mechanical Permits:
a) Fee per Square Foot $0.11 $0.13
b) Minimum fee $180 $186
3 Solar $180 $186
4 Demolition Permit $180 $186
5 Building Permit: [a]
a) Valuation: $1 to $500 $26.79 $27.49
b) Valuation: $501 to $2,000
i) Fee for first $500 $26.79 $27.49
ii) Fee for each additional $100, or fraction thereof, to and including $2,000 $3.47 $3.57 c) Valuation: $2,001 to $25,000
i) Fee for first $2,000 $79.84 $81.02
ii) Fee for each additional $1,000, or fraction thereof, to and including $25,000 $15.93 $16.38 d) Valuation: $25,001 to $50,000
i) Fee for first $25,000 $446.23 $457.73
ii) Fee for each additional $1,000, or fraction thereof, to and including $50,000 $11.51 $11.82 e) Valuation $50,001 to $100,000
i) Fee for first $50,000 $733.98 $753.13
ii) Fee for each additional $1,000, or fraction thereof, to and including $100,000 $7.98 $8.19 f) Valuation $100,001 to $500,000
i) Fee for first $100,000 $1,132.98 $1,162.60
ii) Fee for each additional $1,000, or fraction thereof, to and including $500,000 $6.38 $6.55 g) Valuation: $501,000 to $1,000,000
i) Fee for first $500,000 $3,684.98 $3,783.20
ii) Fee for each additional $1,000, or fraction thereof, to and including $1,000,000 $5.42 $5.56 h) Valuation: $1,000,001 and up
i) Fee for first $1,000,000 $6,395.45 $6,561.73
ii) Fee for each additional $1,000, or fraction thereof $3.58 $3.67 6 Plan Review Fees (In addition to building permit fees) a) Plan Review Fee (% of Building Permit Fee) 65% 65%
b) Structural Plan Review Fee (% of Plan Review Fee) 65% 65% c) Energy Conservation Plan Review Fee (% of Plan Review Fee) 5% 5% d) Green Building Code Plan Review Fee (% of Plan Review Fee) 5% 5% 7 Micro-filming / Imaging Fee (per page, in addition to building permit fees) $5 $5 8 Strong Motion Fees:
a) Residential (per $1 of valuation) $0.00013 $0.00013
b) Commercial (per $1 of valuation) $0.00028 $0.00028
9 SB 1473 (per $25,000 of valuation) $1 $1
10 Road Impact Fee (per $100 of valuation of permitted work) $0.49 $0.49 11 Other Fees
a) Excess Inspection/Excess Re-inspection/Missed Inspection Fee (per inspection) $120 $124 b) Work Commenced without a Permit [b] 1x Base Fees 1x Base Fees Activity Description

City of Monte Sereno
MASTER FEE SCHEDULE - BUILDING FEES - EFFECTIVE AUGUST 5, 2024* Activity Description Note Current Fee Proposed Fee
c) Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1/2 hour min.) $243 $249 d) Fee for Additional Services Required Due to Changes, Modifications, Additions, etc. [c] Actual Costs / T&M Actual Costs / T&M Notes:
* The fees listed in this schedule are rounded off.
[b] Amount in addition to base fee (i.e. double fees).
[c] In the event additional map checking, plan checking, or inspection services by the City are required by reason of changes, modifications, additions, errors, omissions, or discrepancies occasioned by the applicant or his agents or representatives, the applicant shall pay an additional fee equal to the actual cost to the City of performing the additional services. [a] The Building Official shall establish the valuation of said improvements, and fees will be assessed according to the following fee

City of Monte Sereno
MASTER FEE SCHEDULE - ADMINISTRATIVE FEES*
Note Current Fee Proposed Fee
(No change)
1 Business License Fees
a) General Contractor $105 $105
b) Solicitors (for profits) $105 $105
c) Others (including subcontractors/specialty contractors) $55 $55 2 Printed Materials and Maps
a) Photo copies/Scanned/Digital Images (per page) $0.25 $0.26 b) Zoning Map $5 $5
c) City History "Peaceful Mountain" $31 $32
d) Design Guidelines $8 $8
3 Alarm Soundings, within a 12-month period
a) First, Second, and Third Soundings No Charge No Charge b) Fourth $200 $205
c) Fifth $300 $308
d) Subsequent Alarms $300 $308
4 Returned Check Processing Fee
a) First Check [a] $25 $25
b) Each Additional Check [a] $35 $35
5 Preparation of Materials Requiring Formatting, Programming, Development, etc. 100% of Actual Cost (billed per hour; 15
minute increments)
100% of Actual Cost
(billed per hour; 15
minute increments)
6 City Administration Fee Added to Vendor Service Costs, if applicable (e.g. outside printing of materials)
15% 15%
Notes:
* The fees listed in this schedule are rounded off.
[a] Fee set by California Civil Code section 1719.

Activity Description

SB9 Application Review Costs for Completed Projects
Application
Number Address
Consultant
Costs Staff Costs Total Costs
2023-3035 17795 Vineland Av 5,995 1,224 7,219
2023-0379 16101 Greenwood Rd 1,710 1,024 2,734
Average Total Cost 4,977

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Review and Accept Biennial Review of the City of Monte Sereno's Conflict of Interest Code
Recommendation(s):

Staff recommends that the City Council accept staff's review identifying no changes in the City's Conflict of Interest Code and adopt a resolution of the City Council of the City of Monte Sereno acting as the code reviewing body for the Conflict of Interest Code approving the Conflict of Interest Code of City of Monte Sereno.

Background Information:

California Government Code Section 87300 requires the City to adopt and promulgate a Conflict of Interest Code containing certain provisions for the disclosure by elected and appointed officials, designated staff, certain contract employees, and consultants of reportable investments, business positions, interest in real property, and income in accordance with the disclosure categories outlined in Government Code Section 87302. In addition, California Government Code Section 87306 requires that no later than July 1 of each even-numbered year, the code reviewing body (City Council) shall direct every local agency which has adopted a Conflict of Interest Code and, if a change in its Conflict of Code is necessary by changed circumstances, submit an amended Conflict of Interest Code in accordance with subdivision (a) of Section 87302 and Section 87303 to the code reviewing body. Staff completed its review and found no changes in the City's Conflict of Interest Code.

Fiscal Impact:

There are no unbudgeted fiscal impacts with this staff report.

Attachments:

Drafted Resolution
Exhibit A - 20-3798 - Conflict of Interest Code dated 12-01-2020 Local Agency Biennial Notice
Local Agency Biennil Notice Instructions

RESOLUTION NO. 24-XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO ACTING AS THE

CODE REVIEWING BODY FOR THE CONFLICT OF INTEREST CODE AND APPROVING THE

CONFLICT OF INTEREST CODE OF THE CITY OF MONTE SERENO
WHEREAS, the Political Reform Act (Government Code section 81000 et seq.) requires every local government agency to review its conflict of interest code biennially; and WHEREAS, pursuant to Government Code Section 87306.5, the City Clerk’s Office for the City of Monte Sereno reviewed the City’s conflict of interest code and determined no changes were needed; and
WHEREAS, the City Clerk submitted a report identifying no changes in its Conflict of Interest Code for review and approval by the City Council.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City Of Monte Sereno that there are no amendments to the Conflict of Interest Code for City of Monte Sereno dated December 1, 2020, copies of which are attached as Exhibit A and also kept on file in the office of the City Clerk.

This resolution was passed and adopted by the City Council of the City of Monte Sereno at a regularly scheduled meeting held on the 4th day of June, 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
______________________________
Evert Wolsheimer, Mayor
ATTEST:
___________________________
Gloisy Gonzalez-Langarica, City Clerk

www.fppc.ca.gov
FPPC Advice: [email protected] (866.275.3772)

2024 Local Agency Biennial Notice
Name of Agency:

Mailing Address:

Contact Person: Phone No.

Email: Alternate Email:

Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency’s code includes disclosure by those agency officials who make or participate in making governmental decisions.

This agency has reviewed its conflict of interest code and has determined that (check one BOX):
 An amendment is required. The following amendments are necessary:
(Check all that apply.)
 Include new positions
 Revise disclosure categories
 Revise the titles of existing positions
 Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions
 Other (describe)
 The code is currently under review by the code reviewing body.  No amendment is required. (If your code is over five years old, amendments may be necessary.)
Verification (to be completed if no amendment is required) This agency’s code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302.
__________________________________________ _________________________ Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 1, 2024, or by the date specified by your agency, if earlier, to:
(PLACE RETURN ADDRESS OF CODE REVIEWING BODY HERE)
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.

[email protected] 1.866.275.3772 or 916.322.5660
www.fppc.ca.gov FPPC • 076-04.2024 • Page 1 of 1

FAIR POLITICAL PRACTICES COMMISSION
2024 Conflict of Interest Code
Biennial Notice Instructions for Local Agencies
The Political Reform Act requires every local government agency to review its conflict of interest code biennially. A conflict of interest code tells public officials, governmental employees, and consultants what financial interests they must disclose on their Statement of Economic Interests (Form 700).

By July 1, 2024: The code reviewing body must notify agencies and special districts within its jurisdiction to review their conflict of interest codes.

By October 1, 2024: The biennial notice must be filed with the agency’s code reviewing body.

The FPPC has prepared a 2024 Local Agency Biennial Notice form for local agencies to complete or send to agencies within its jurisdiction to complete before submitting to the code reviewing body. The City Council is the code reviewing body for city agencies. The County Board of Supervisors is the code reviewing body for county agencies and any other local government agency whose jurisdiction is determined to be solely within the county (e.g., school districts, including certain charter schools). The FPPC is the code reviewing body for any agency with jurisdiction in more than one county and will contact them.

The Local Agency Biennial Notice is not forwarded to the FPPC.

If amendments to an agency’s conflict of interest code are necessary, the amended code must be forwarded to the code reviewing body for approval within 90 days. An agency’s amended code is not effective until it has been approved by the code reviewing body.

If you answer yes, to any of the questions below, your agency’s code probably needs to be amended.
• Is the current code more than five years old?
• Have there been any substantial changes to the agency’s organizational structure since the last code was approved?
• Have any positions been eliminated or re-named since the last code was approved? • Have any new positions been added since the last code was approved? • Have there been any substantial changes in duties or responsibilities for any positions since the last code was approved?
If you have any questions or are still not sure if you should amend your agency’s conflict of interest code, please contact the FPPC. Additional information including an online webinar regarding how to amend a conflict of interest code is available on FPPC’s website.

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: CONSENT CALENDAR
Staff Contact: Daryl Jordan, City Engineer
Department: City Engineer
Title: Adopt a Resolution to Adopt to a List of Projects for Fiscal Year 2024/25 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) 2024/25 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, 2024 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
$90,060 in FY 2024/25. As part of the proposed FY 2024/25 annual Pavement Management Program, staff recommends the maintenance of following streets be funded with RMRA funds:

Street name Begin Location End Location PCI

TWIN CREEKS
ROAD

AQUINAS CRK
BRIDGE VIA CABALLERO 47
WEST

ELLENWOOD
AVENUE

ELLENWOOD
AVENUE END NORTH 30

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 utility and development projects.

The project list submitted to the CTC does not limit flexible 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 $90,060 in FY 2024/25 SB 1 funds will be applied directly towards the annual Pavement Improvement Program. This funding is in addition to the annual Highway Users Tax Account (or Gas Tax) funds the City receives (estimated at $101,547 for FY 2024/25).

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:

Draft Resolution

RESOLUTION NO._______
RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2024-25 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 $90,060 in RMRA funding in Fiscal Year 2024- 2025 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, 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 2024-2025 Road Maintenance and Rehabilitation Account revenues:

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

Street Name Limits PCI
Twin Creeks
Road
Aquinas Creek
Bridge to Tamson
Ct.
61 Twin Creeks
Road
Tamson Cr. To Via
Caballero
56 West
Ellenwood
Avenue
Ellenwood Avenue
to End North
30 FY24-25 Annual Pavement
Management Program
(August 2022-
October 2022)
Prepare by grinding
2” old pavement,
repair of failed
pavement, and
repair/replacement
of curbs & gutters.

Placement of
overlay to
rehabilitate
pavement surface.
10-15
Years
PASSED AND ADOPTED by the City Council of the City of Monte Sereno, State of California this 4th day of June 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_____________________________
Evert Wolsheimer, Mayor

ATTEST:
______________________________
Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: UNFINISHED BUSINESS
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Study Session #2 - Fiscal Year 2024 to 2026 Proposed Budget Recommendation(s):

Staff recommends that the Council conduct a second Study Session to review and discuss the proposed FY 2024 - 2026 Budget.

Background Information:

From the first Study Session on May 21, 2024, staff made necessary changes to the FY 2024- 2026 Proposed Budget based on City Council comments and recommendations.

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:
000 FY 2024-2026 Proposed Budget Study Session 2 (Final 06-04-2024) REVISED

1 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 Executive Summary
FY 2024-2026 Proposed Budget
Study Session #2
Revenue
Total FY 2024-25 Proposed Budget Revenue $5.8 Million versus $5.8 Million in the FY 2024 Mid-Year Budget. Operating General Revenues $4.8 Million versus $4.7 Million in the FY 2024 Mid-Year Budget, $0.1 Million or +2.6% higher versus last year. This increase was primarily driven by higher property taxes.

Expenditures
Total FY 2024-25 Proposed Budget Expenditures $7.2 Million versus $6.2 Million in the FY 2024 Mid-Year Budget. Operating General Expenditures $4.7 million versus $4.5 million in the FY 2024 Mid-Year Budget, $0.3 million increase or +6%. This increase was driven by higher staff salary and benefits +$155k and Administration +$155k.

Structural Surplus
Structural Surplus was $87k (General Fund Revenue $4.8 million minus General Fund Expenditures $4.7 million).

THE CITY OF MONTE SERENO
FY 2024 to FY 2026 Two-Year Budget (Proposal #2)
Study Session #2
June 4, 2025

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

A B C D E F G H I J
FY 2022-23 YTD
ACTUAL
FY 2023-24
Mid-Year Budget
General Fund
FY 2023-24
Mid-Year Budget
Non-Recurring
Projects CIP
FY 2023-24
Mid-Year Budget
Total
FY 2024-25
Proposed #2
Budget General
Fund
FY 2024-25
Total GP, PMP and
CIP Projects
Total Proposed #2
FY 2024-25
Budget
Change FY 2025
Proposed Budget vs. FY
2024 Mid-Year Budget
(General Fund) (E minus
B)
% Change
Budget July 1, 2025 to
June 30, 2026
(Proposed)
2,771,990 2,849,146 0 2,849,146 2,990,600 0 2,990,600 141,454 5.0% 3,080,400 808,078 737,300 0 737,300 786,550 0 786,550 49,250 6.7% 791,950 362,830 442,800 0 442,800 476,000 0 476,000 33,200 7.5% 490,200 203,012 153,100 122,066 275,166 108,700 71,700 180,400 (44,400) -29.0% 195,266 211,911 198,600 65,082 263,682 153,000 0 153,000 (45,600) -23.0% 153,000 159,504 0 192,800 192,800 0 191,547 191,547 0 NA 200,000 118,090 215,600 0 215,600 206,000 0 206,000 (9,600) -4.5% 212,200 81,869 83,100 0 83,100 76,900 0 76,900 (6,200) -7.5% 79,200 13,967 7,500 0 7,500 8,500 0 8,500 1,000 13.3% 8,800
409,905 0 738,000 738,000 0 695,952 695,952 0 NA 0
1,704 5,100 0 5,100 6,600 0 6,600 1,500 29.4% 6,800
5,142,860 4,692,246 1,117,948 5,810,194 4,812,850 959,199 5,772,049 120,604 2.6% 5,217,816 Page: 1 of 15 File: FY 2024 to 2026 Proposed #2 (ver 06-04-2024 Final) REV 5-30-2024 928pm

2 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 FY 2024-26 Proposed Budget
Vs. FY 2023-24 Mid-Year Budget Narrative
Revenues – General Fund

SIGNIFICANT FULL-YEAR VARIANCES TO THE MID-YEAR BUDGET NARRATIVE • Revenues $4.8 Million (+$120k higher versus FY 2023-24 Mid-Year Budget) ➢ Property Tax $3.0 Million, $141.5k higher versus FY 2023-24 Mid-Year Budget - Secured property, Unsecured, Homeowners’ Exemption and supplemental taxes per Santa Clara County Assessor’s Estimate of FY 2024 property taxes. FY 2025 Proposed Budget include potential property tax growth of 5.0%
- Police Special Tax Assessment reduced to $89k per Assessor’s report May 5, 2023. ➢ Licenses and Permits $786.6k, $737k higher versus FY 2023-24 Mid-Year Budget:
- Permit activity slowed as higher interest rates and concerns over the economy. The Proposed FY 2025 budget is $49k lower versus the FY 2024 Mid-Year Budget, lower by $21.5k versus FY 2023 Actuals. ➢ Franchise Fees $476k, $33.2k higher versus FY 2023-24 Mid-Year Budget:
- Gas franchise fees are projected to be flat versus FY 2024. Cable/internet, Water and Electricity providers expect slight increase due to higher rates.
➢ Intergovernmental $108.7k, $43.4k lower versus FY 2023-24 Mid-Year Budget:
- FY 2025 Proposed Budget for COPS ELEAS pass-thru Grant reduced by $50k to $100k. ➢ Other Revenues $153k, -$45.6k lower versus FY 2023-24 Mid-Year Budget:
- Expect lower Road Impact Fees to $125k; Storm drain development fees to $15k. - Already received LEAP Grant reimbursement ($65k) in FY 2024. ➢ Real Property Tax $76.9k, $6.2k lower versus FY 2023-24 Mid-Year Budget:
- Real property transfer tax $6k lower based on March 2024 YTD run rate. ➢ Sales and Use Tax $9k, $1k higher versus FY 2023-24 Mid-Year Budget:
- Lower sales tax estimate based on March 2024 YTD run rate. ➢ Investment Income/Interest $206k, $10k lower versus FY 2023-24 Mid-Year Budget:
- Investing $4.1M average balance reserves in a laddered T-Bill strategy at 5%.

THE CITY OF MONTE SERENO
FY 2024 to FY 2026 Two-Year Budget (Proposal #2)
Study Session #2
June 4, 2025

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)

A B C D E F G H I J
FY 2022-23 YTD
ACTUAL
FY 2023-24
Mid-Year Budget
General Fund
FY 2023-24
Mid-Year Budget
Non-Recurring
Projects CIP
FY 2023-24
Mid-Year Budget
Total
FY 2024-25
Proposed #2
Budget General
Fund
FY 2024-25
Total GP, PMP and
CIP Projects
Total Proposed #2
FY 2024-25
Budget
Change FY 2025
Proposed Budget vs. FY
2024 Mid-Year Budget
(General Fund) (E minus
B)
% Change
Budget July 1, 2025 to
June 30, 2026
(Proposed)
1,290,870 1,760,600 0 1,760,600 1,916,373 541,137 2,457,510 155,773 8.8% 1,977,158 1,175,875 1,242,665 0 1,242,665 1,235,514 0 1,235,514 (7,151) -0.6% 1,269,600 45,025 1,900 63,000 64,900 20,000 60,000 80,000 18,100 952.6% 20,000 402,592 477,657 0 477,657 440,782 112,500 553,282 (36,875) -7.7% 531,650 611,471 233,200 331,700 564,900 222,500 400,000 622,500 (10,700) -4.6% 647,500 732,852 458,600 200 458,800 613,600 0 613,600 155,000 33.8% 618,400 108,016 90,000 35,100 125,100 100,000 0 100,000 10,000 11.1% 103,000 52,308 48,100 0 48,100 31,000 25,000 56,000 (17,100) -35.6% 91,000 75,259 69,694 43,306 113,000 75,000 50,000 125,000 5,306 7.6% 77,100 28,732 0 1,277,750 1,277,750 0 1,325,000 1,325,000 0 0.0% 0 39,596 59,650 8,000 67,650 52,900 0 52,900 (6,750) -11.3% 54,300 11,247 11,940 0 11,940 15,000 0 15,000 3,060 25.6% 15,000 2,125 2,800 0 2,800 2,800 0 2,800 0 0.0% 3,150
0 0
4,575,967 4,456,806 1,759,056 6,215,862 4,725,469 2,513,637 7,239,106 268,663 6.0% 5,407,858 566,893 235,440 (641,108) (405,668) 87,381 (1,554,438) (1,467,057) (148,060) -62.9% (190,042) Page: 7 of 15 File: FY 2024 to 2026 Proposed #2 (ver 06-04-2024 Final) REV 5-30-2024 928pm

3 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 FY 2024-26 Proposed Budget
Vs. FY 2023-24 Mid-Year Budget Narrative
Expenditures

SIGNIFICANT FULL-YEAR VARIANCES TO THE MID-YEAR BUDGET NARRATIVE • Expenditures $4.7 Million, $0.3M higher versus FY 2023-24 Mid-Year Budget ➢ Personnel $1.9 Million, $155.8k higher versus FY 2023-24 Mid-Year Budget - FY 2025 and FY 2026 Salaries and Benefits follows the MOU adopted on July 1, 2023. Includes salary increase FY 2025 & FY 2026 4% COLA. 9 Full-time Staff and 1 Part-time Staff.

FTE 8 (FY 2024) 9 (FY 2025 and FY 2026)
Part-Time 2 (FY 2024) 1 (fY 2025 and FY 2026)
➢ Law Enforcement $1.2 Million, $7.2k lower versus FY 2023-24 Mid-Year Budget:
> Construction $20 Thousand, $18k higher versus FY 2023-24 Mid-Year Budget:
- Added in FY 2025 Traffic Safety project ($5k) and Bike Safety project ($15k). ➢ General Government $440.7 Thousand, $36.9k lower versus FY 2023-24 Mid-Year Budget:
- FY 2025 Proposed Budget Lower by $38k vs FY 2024 Mid-Year Budget – Lower professional services -$36k, Support Low Income & Homeless Housing -$30k offset by Election 2024 +$15k and higher liability insurance premiums +$34k.
➢ Maintenance $222.5 Thousand, $10.7 lower versus FY 2023-24 Mid-Year Budget:
- General routine street maintenance higher in FY 2024 due to major storm in Monte Sereno.

4 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 ➢ Administration $614 Thousand, $155k higher versus FY 2023-24 Mid-Year Budget:
- FY 2025 Proposed Budget increase primarily driven by Engineering/Public Works Consultants (+$120k and Plan Check Building Official (+$24k)
➢ City Attorney $100 Thousand, $10k higher versus FY 2023-24 Mid-Year Budget:
- City Attorney contracted rate $90k/yr. plus extra billable hours $10k. ➢ Building Maintenance $31 Thousand, $17k lower versus FY 2023-24 Mid-Year Budget:
- In FY 2024 performed tree trimming $6k and City Hall maintenance projects $9k. ➢ Equipment / Improvements $75 Thousand, $5k higher versus FY 2023-24 Mid-Year Budget:
‘ Provisions for higher software licensing costs and City Truck maintenance costs.

THE CITY OF MONTE SERENO
FY 2024 to FY 2026 Two-Year Budget (Proposal #2)
Study Session #2
June 4, 2025

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

E F K L M N O P Q R S T U V W
FY 2024-25
Proposed #2
Budget General
Fund
FY 2024-25
Total GP, PMP and
CIP Projects
Capital
Improvement
Project
Total Proposed
#2 FY 2024-25
Budget
Budget July 1, 2025 to
June 30, 2026
(Proposed)
General Fund Total GP, PMP and
CIP Projects
Finance &
Accounting
Systems
Improvement
Flock Cameras
City Hall
Maintenance Project -
Exterior Paint ($25k)
Unfunded Accrued
Liabilities (UAL) -
Classic ($499k) &
PEPRA ($43k)
General Plan
Revised
Community Center
Building
Green Stormwater
Infrastructure
Project
PMP-2025-A PMP-2025-B
Daves Avenue
Safety
Improvement
Total Proposed
FY 2024-25
Budget
GF GEN-2025-A GEN-2025-B Gen-2025-C Gen-2025-D Gen-2025-E Gen-2025-F GEN-2022-B GEN-2024-A PMP-2025-A PMP-2025-B CIP-2024-C 2,990,600 0 0 0 0 0 0 0 0 0 0 0 0 2,990,600 3,080,400
786,550 0 0 0 0 0 0 0 0 0 0 0 0 786,550 791,950
476,000 0 0 0 0 0 0 0 0 0 0 0 0 476,000 490,200
108,700 71,700 0 0 0 0 0 0 0 0 46,700 0 25,000 180,400 195,266 153,000 0 0 0 0 0 0 0 0 0 0 0 0 153,000 153,000
0 191,547 0 0 0 0 0 0 0 0 191,547 0 0 191,547 200,000
206,000 0 0 0 0 0 0 0 0 0 0 0 0 206,000 212,200
76,900 0 0 0 0 0 0 0 0 0 0 0 0 76,900 79,200
8,500 0 0 0 0 0 0 0 0 0 0 0 0 8,500 8,800
0 695,952 0 0 0 0 0 0 695,952 0 0 0 0 695,952 0
6,600 0 0 0 0 0 0 0 0 0 0 0 0 6,600 6,800
4,812,850 959,199 0 0 0 0 0 0 695,952 0 238,247 0 25,000 5,772,049 5,217,816 General Project Annual Pavement Management
Program (PMP)
Page: 1 of 1 File: FY 2024 to 2026 Proposed #2 (ver 06-04-2024 Final) REV 5-30-2024 928pm

THE CITY OF MONTE SERENO
FY 2024 to FY 2026 Two-Year Budget (Proposal #2)
Study Session #2
June 4, 2025

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)

E F K L M N O P Q R S T U V W
FY 2024-25
Proposed #2
Budget General
Fund
FY 2024-25
Total GP, PMP and
CIP Projects
Capital
Improvement
Project
Total Proposed
#2 FY 2024-25
Budget
Budget July 1, 2025 to
June 30, 2026
(Proposed)
General Fund Total GP, PMP and
CIP Projects
Finance &
Accounting
Systems
Improvement
Flock Cameras
City Hall
Maintenance Project -
Exterior Paint ($25k)
Unfunded Accrued
Liabilities (UAL) -
Classic ($499k) &
PEPRA ($43k)
General Plan
Revised
Community Center
Building
Green Stormwater
Infrastructure
Project
PMP-2025-A PMP-2025-B
Daves Avenue
Safety
Improvement
Total Proposed
FY 2024-25
Budget
General Project Annual Pavement Management
Program (PMP)
1,916,373 541,137 0 0 0 0 541,137 0 0 0 0 0 0 2,457,510 1,977,158 1,235,514 0 0 0 0 0 0 0 0 0 0 0 0 1,235,514 1,269,600
20,000 60,000 0 0 0 0 0 0 0 0 0 0 60,000 80,000 20,000
440,782 112,500 25,000 0 0 0 0 87,500 0 0 0 0 0 553,282 531,650 222,500 400,000 0 0 0 0 0 0 0 0 400,000 0 0 622,500 647,500 613,600 0 0 0 0 0 0 0 0 0 0 0 0 613,600 618,400
100,000 0 0 0 0 0 0 0 0 0 0 0 0 100,000 103,000
31,000 25,000 0 0 25,000 0 0 0 0 0 0 0 0 56,000 91,000
75,000 50,000 0 50,000 0 0 0 0 0 0 0 0 0 125,000 77,100 0 1,325,000 0 0 0 0 0 0 1,200,000 125,000 0 0 0 1,325,000 0 52,900 0 0 0 0 0 0 0 0 0 0 0 0 52,900 54,300
15,000 0 0 0 0 0 0 0 0 0 0 0 0 15,000 15,000
2,800 0 0 0 0 0 0 0 0 0 0 0 0 2,800 3,150
4,725,469 2,513,637 25,000 50,000 25,000 0 541,137 87,500 1,200,000 125,000 400,000 0 60,000 7,239,106 5,407,858 87,381 (1,554,438) (25,000) (50,000) (25,000) 0 (541,137) (87,500) (504,048) (125,000) (161,753) 0 (35,000) (1,467,057) (190,042) Page: 1 of 1 File: FY 2024 to 2026 Proposed #2 (ver 06-04-2024 Final) REV 5-30-2024 928pm

5 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 FY 2024-26 Proposed Budget
Vs. FY 2023-24 Mid-Year Budget
Narrative
General Projects / PMP / CIP
Net Cost $1.6 Million
1) Finance & Accounting Systems Improvement
$25,000 – Draw on general fund
2) Flock Cameras
$50,000 – Draw on general fund
3) City Hall Maintenance Project – Exterior Painting
$25,000 – Draw on general fund

6 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 4) Unfunded Accrued Liabilities (UAL) – Classic ($499k) & PEPRA ($43k) $498,579 – Classic UAL – Draw on general fund
$42,558 – PEPRA UAL – Draw on general fund

7 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 Unfunded Accrued Liabilities – Classic

8 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 Unfunded Accrued Liabilities - PEPRA
5) General Plan Revised
$87,500 – Draw on general fund

9 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 6) Community Center Building
Revenue Sources
a) $18,000 – Silicon Valley Clean Energy Secured if used for solar panel/battery b) $177,962 – Prop 68 Per Capita Program Grant performance period July 1, 2018 to June 30, 2028
c) $500,000 – Silicon Valley Clean Energy Decarbonization Grant Program if used by December 31, 202x
Expenditures
a) $1,200,000 – Community Center Costs excluding furniture and fixtures $504,038 – Draw on general fund
7) Green Stormwater Infrastructure Project
$125,000 – Draw on general fund
8) Annual Pavement Management Program
Revenue Sources
a) $10,000 - Ped Education and Encouragement Allocation b) $36,700 – Measure B Santa Clara Valley Transportation c) $101,547 – Gas Tax revenue
d) $90,000 – Gas Tax SB-1
Expenditures
a) $400,000 – Cost of Pavement Management Program
$161,753 – Draw on 12-Fund Street Improvement Projects
9) Daves Avenue Safety Improvement
Revenue Sources
a) $25,000 – TDA
Expenditures
a) $60,000 – Daves Avenue Safety Improvement
$35,000 – Draw on 05-Fund Traffic Safety Fund

THE CITY OF MONTE SERENO
FY 2024 to FY 2026 Two-Year Budget (Proposal #2)
Study Session #2
June 4, 2025

TOTAL FUND RESERVES

WARRANT CHECKING ACCOUNT
01-010 TOTAL WARRANT CHECKING

SAVINGS ACCOUNT
01-015 General
01-015a Economic Fluctuation Reserve
01-015b Capital Improvement Program Reserve
01-015c Property Improvement Reserve
01-015d Other Post Emplpoyment Benefits (OPEB)
03-015 Law Enforcement
05-015 Traffic Safety
07-015 Community Center Capital Campaign
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
01-025 Undesignated Reserve
01-025a Economic Fluctuation Reserve
01-025b Capital Improvement Program Reserve
01-025c Property Improvement Reserve
01-025d 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
Wells Fargo Advisors Account
01-035 Undesignated Reserves
01-035a Economic Fluctuation Reserve
01-035b Capital Improvement Program Reserve
01-035c Property Improvement Reserve
01-035d Other Post Emplpoyment Benefits (OPEB)
12-035 Gas Tax Account
Wells Fargo Advisors Account

TOTAL ALL FUNDS

E F K L M N O P Q R S T U V
FY 2024-25
Proposed #2
Budget General
Fund
FY 2024-25
Total GP, PMP and
CIP Projects
Capital
Improvement
Project
Total Proposed #2
FY 2024-25
Budget
General Fund Total GP, PMP and
CIP Projects
Finance &
Accounting
Systems
Improvement
Flock Cameras
City Hall
Maintenance Project -
Exterior Paint ($25k)
Unfunded Accrued
Liabilities (UAL) -
Classic ($499k) &
PEPRA ($43k)
General Plan
Revised
Community Center
Building
Green Stormwater
Infrastructure
Project
PMP-2025-A PMP-2025-B
Daves Avenue
Safety
Improvement
Total Proposed
FY 2024-25
Budget
General Project Annual Pavement Management
Program (PMP)
1,623,895 (1,357,685) (25,000) (50,000) (25,000) 0 (541,137) (87,500) (504,048) (125,000) 0 0 0 463,616 193,496 0 (0)
0 0
0 0
0 0
0 0
(527,764) 0 (0)
(35,000) (35,000) 29,424
0 5,000
(381,297) (161,753) (161,753) (0)
0 69,524
0 73
0 7,332
0 39
(715,565) (196,753) 0 0 0 0 0 0 0 0 (161,753) 0 (35,000) 111,391 908,330 (1,554,438) 575,007
(99,033) 0 0
0 0
0 0
0 0
0 0
(99,033) 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0
0 1,102
0 21,000
0 27,043
0 6751
0 0 0 0 0 0 0 0 0 0 0 0 0 55,896
(99,033) 0 0 0 0 0 0 0 0 0 0 0 0 55,896
(321,916) 0 0
0 3,500,000
(200,000) 0 300,000
(200,000) 0 0
0 0
0 142,722
(721,916) 0 0 0 0 0 0 0 0 0 0 0 0 3,942,722
87,381 (1,554,438) (25,000) (50,000) (25,000) 0 (541,137) (87,500) (504,048) (125,000) (161,753) 0 (35,000) 4,573,625 Page: 1 of 1 File: FY 2024 to 2026 Proposed #2 (ver 06-04-2024 Final) REV 5-30-2024 928pm

10 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 $4,725,469 Total FY 2024-25 Proposed General Fund Expenditures $4,263,616 Total Proposed NET FY 2025 Reserve Balance – June 30, 2025 $ 461,853 9.7 months reserves
$4,263,616 divided by $4,725,469, times 12 months equals 10.8 months reserves

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: NEW BUSINESS
Staff Contact: Reynold Samoranos
Department: Finance
Title: Setting Fiscal Year 2024-25 Appropriations Limit Recommendation(s):

Staff recommends the City Council adopt a resolution setting the Appropriations Limit for Fiscal Year 2024-2025 based upon the Price Factor and Population data provided by the State of California Department of Finance.

Background Information:

Article XIII B of the California Constitution requires the City Council to annually set an “appropriations limit” by resolution. The appropriations limitation imposed by Propositions 4 and 111 creates a restriction on the amount of tax proceeds which can be appropriated in any fiscal year. This limit does not apply to the entire City budget. Certain expenditures of tax proceeds do not count toward this limit, including voter approved debt, regulatory and user fees, qualified capital outlays, and costs of complying with legal mandates. The limit is based on actual appropriations during the base year (FY 1986-87) and is increased each year using growth of population and inflation factors. Proposition 111, which was approved by the voters in June 1990, amended the factors used in the calculation of each year's limit. The factors to be used now are:

a. Price Factor - At the City's option, either the change in California per capita income or increase in non-residential assessed valuation due to new local nonresidential construction.

b. Population Factor – At the City's option, either the annual change in City or County population.

Attached is the calculation for the FY 2024-2025 appropriations limit, which is $8,928,528. (Attachment 2). The proposed budget for Fiscal Year 2023-2024 is $7,239,106 and is below the appropriation limit set for the upcoming fiscal year.

Public Noticing:

The City Council’s agenda was posted at City Hall and the agenda, and this report appear on the City’s website. While the law does not require a public hearing, a Notice of Intent to Adopt

11 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2 GANN Calculation
FY 2024-25 Proposed Budget

12 | P a g e
FY 2024-26 Proposed Budget vs. FY 2023-24 Mid-Year Budget Narrative – Study Session #2

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: NEW BUSINESS
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Consider and Appoint Members to the 2024-2025 Monte Sereno Youth Commission
Recommendation(s):

Staff recommends that the City Council consider applications for the 2024-2025 Monte Sereno Youth Commission and appoint the five applicants to the Youth Commission.

Background Information:

The Youth Commission ordinance calls for appointments of Youth Commission annually and allows for up to fifteen (15) Youth Commissioners. City Council can appoint are at-large the recieved applicantions. This year, the City received applications from the following five Monte Sereno youth:
 Johann Jacob*
 Jaxon Charnaw*
 Jaz Charnaw*
 Hamilton Duflock*
 Audrey Hampton
The asterisk (*) denotes applicants who served on the 2023-2024 Youth Commission and are re-applying for another one-year term.

The appointed applicants will be required to fill out and sign the Monte Sereno Youth Volunteer Waiver and Release of Liability form.

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:

Monte Sereno Youth Volunteer Waiver and Release of Liability Form Youth Commission Applications

OAK #4827-3493-4715 v1

CITY OF MONTE SERENO YOUTH VOLUNTEER

WAIVER AND RELEASE OF LIABILITY FORM
In consideration of being allowed to participate in a City of Monte Sereno commission or volunteer program, I acknowledge and agree that:

1. My child (or I) is volunteering my services for the City of Monte Sereno on a voluntary basis without anticipation of payment of any kind.

2. I acknowledge that the City of Monte Sereno may extend its workman's compensation coverage to authorized volunteers and I agree to accept that coverage.

3. My child (or I) will perform tasks that are within his/her (or my) physical capability to the best of his/her (or my) ability, and my child (or I) will not undertake tasks that are beyond his/her (or my) ability. I certify to the best of my knowledge, that my child's (or my) current physical condition is satisfactory for participation in this activity, and that he/she (or I) am free of any health problem that would affect his/her (or my) ability to participate.

4. I agree to inform my child (or I agree) not to use any equipment or tools with which my child (or I) am unfamiliar or do not know how to operate safely.

5. I agree to inform my child (or I agree) to perform only those tasks assigned, observe all safety rules, and use care in the performance of assignments.

6. I agree that my child (or I) may be photographed, videotaped or recorded and that said photographs, videos or recordings may be used for promotional materials by the City. I understand that my child (or I) will not receive compensation for the use of these and that my child (or I) will not be given notice of when these materials are used.

7. I acknowledge that the City will defend and indemnify my child (or myself) in any claim or action arising from my child's (or my) acts that are within the scope of my child's (or my) duties as a volunteer, but only to the extent that such indemnification or defense is expressly required by law. I further acknowledge that the City is not required to indemnify my child (or me) against a claim for punitive damages except as authorized by the City Council pursuant to Government Code Section 825 (b). I agree, however, to defend and indemnify the City in any claim or action arising from my child's (or my) acts that are outside the scope of my child's (or my) volunteer duties.

8. In the event that my child (or I) use a personal vehicle in order to participate in any City-related commission or volunteer activity, I agree to maintain my own automobile liability insurance for bodily injury and property damage, which shall be the primary insurance coverage, and that any insurance or self-insurance maintained by the City shall be considered excess of such insurance and shall not contribute with it. I hereby also grant a waiver of any right of subrogation which any such insurer may acquire against the City by virtue of the payment of any loss.

9. I acknowledge that loss or damage to my child's (or my) personal property used while providing volunteer services may not be reimbursable under City regulations.

10. I hereby authorize and give my consent for medical care to be given in an emergency situation to the below named child (or to me) while volunteering.

11. THIS AGREEMENT IS BINDING ON MY HEIRS, PERSONAL REPRESENTATIVES, NEXT OF KIN, SPOUSE AND ASSIGNS.

Volunteer's Name (print) ___________________________________________ Date of birth ____/____/____
Address __________________________________________________________ City ___________________________ Zip _______-_____ Phone # ( )_______________ Emergency Phone #'s ( )______________________/ ( )______________________ Volunteer's Signature (if participant is 18 years or older) ________________________ Date Signed ____/____/____
Parent/Legal Guardian signature required if volunteer is 17 years of age or younger.

This is to certify that as a parent/legal guardian of this volunteer, I do consent to his/her waiver and release as set forth above. My child has my permission to volunteer. I realize that participation in this program is voluntary.

Parent/Guardian Name (print) _______________________________ Relationship______________________ Parent/Guardian Signature __________________________________________ Date Signed ____/____/____

City of Monte Sereno
Commission Application
Date Received: May 6, 2024
Applying for: Youth Commission
Name: Audrey Hampton
Previously Held Elected or
Appointed Governmental
Positions:

Please include organization name, position/office held, and dates.

Civic or Charitable Organizations
You Have Belonged To:

Please include organization name, position/office held, and dates.

Education: Rising 12th grader
Why do you want to be on the
selected Commission?:

I want to be on the selected commission because I would like to be involved in the community I live in.

Tell us about your skills,
experience, or interests that
relate to the Commission that
you feel would assist us in
considering your application:

I am the editor-in-chief of my school's yearbook and therefore have obtained leadership, organizational skills, and time management. I have also been on my school's varsity tennis team for three years and I work well with others and am a great team player. I have also worked at Los Gatos Swim and Racket club for the last two summers teaching young kids how to play tennis and I have great skills working with kids younger than me.

Please list your current
commitments:
-School's varsity tennis team, in the fall
-Summer job at Los Gatos Swim and Racket Club
What strengths do you possess
that you believe will make you a
successful commissioner?:

I am very driven which allows me to get things done effectively. I am a strong communicator, and can communicate with people of different ages.

What do you see as the
important issues in Monte
Sereno?:

1. On Daves avenue, which Daves elementary school is on, many cars do not stop at the stop signs and exceed the speed limit.

2. There are many young children on electric bikes and they endanger themselves by not wearing helmets, having multiple riders on the bikes, and not informing cars when they will turn or merge lanes.

What strengths do you possess
that you believe will make you a
successful commissioner?:

I am very driven which allows me to get things done effectively. I am a strong communicator, and can communicate with people of different ages.

What, if any, career interests do
you have currently?:

I am planning on studying economics and business in college, and from there I will decide which field I would want to go into.

City of Monte Sereno
Commission Application
Date Received: May 8, 2024
Applying for: Youth Commission
Name: Hamilton Duflock
Previously Held Elected or
Appointed Governmental
Positions:
2023-2024 Monte Sereno Youth Commission
Civic or Charitable Organizations
You Have Belonged To:

Boys Team Charity, Monte Sereno Youth Commission, Bellarmine Christian Service Program.

Education: Bellarmine College Preparatory 9th to 11th grade.

Why do you want to be on the
selected Commission?:

I want to be on the Commission because I was on the Commission previously and enjoyed the experience and I also felt like I learned a lot through being a part of the group. I also want to continue to impact and change my community by taking part in this Commission because I believe that if the team continues to work hard, we will continue to make a bigger and better difference in the lives of those that live in Monte Sereno. I also believe that learning about how local and State institutions function as well as learning about how they work with people in the community to promote change.

Tell us about your skills,
experience, or interests that
relate to the Commission that
you feel would assist us in
considering your application:

I am very organized and work well with a group to accomplish tasks I am interested in identifying new areas for involvement in the community and being involved with them in general. I also believe that I am very committed to the program and that since I previously served that being able to serve consecutively will help me implement myself better within the group and engage in more meaningful activities with the Commission. I am also very passionate about finding ways to improve my community and continue to help it grow further.

Please list your current
commitments:

Jui Jitsu, Piano, Arrupe Ambassadors (school year only), Boys Team Charity, Theatre Tech (school year only).

What strengths do you possess
that you believe will make you a
successful commissioner?:

I am compassionate, innovative, work well with others, and committed What do you see as the
important issues in Monte
Sereno?:

I believe that right now the main issue is the amount of trash on the side of the roads, as I saw during the Keep Our City Pretty event, there was a lot more trash than I previously believed since me and other commissioners actually took the time to walk down and pick up trash.

What strengths do you possess
that you believe will make you a
successful commissioner?:

I am compassionate, innovative, work well with others, and committed

What, if any, career interests do
you have currently?:

Engineering, Architecture, Physics.

City of Monte Sereno
Commission Application
Date Received: May 27, 2024
Applying for: Youth Commission
Name: Jaxon Charnaw
Previously Held Elected or
Appointed Governmental
Positions:

Youth Commission member
Civic or Charitable Organizations
You Have Belonged To:

Los Gatos High School Leadership
Education: Los Gatos High School
Why do you want to be on the
selected Commission?:

I enjoyed my last term very much. I think I contributed positively towards the commission this term.

Tell us about your skills,
experience, or interests that
relate to the Commission that
you feel would assist us in
considering your application:

I was previously on the commission, I am also apart of LGHS leadership.

Please list your current
commitments:

LGHS leadership, JCC camp counselor, Tennis, Monte Sereno Youth Commission.

What strengths do you possess
that you believe will make you a
successful commissioner?:

I am a great listener, and I think before adding my input. I do not act spontaneously, and if I have a question, I always ask it.

What strengths do you possess
that you believe will make you a
successful commissioner?:

I am a great listener, and I think before adding my input. I do not act spontaneously, and if I have a question, I always ask it.

What, if any, career interests do
you have currently?:

I want to go into business. I think I am an analytical person and I feel like that would be a good fit for me.

City of Monte Sereno
Commission Application
Date Received: May 4, 2024
Applying for: Youth Commission
Name: Jaz Charnaw
Previously Held Elected or
Appointed Governmental
Positions:

I have been on the youth commission.

Civic or Charitable Organizations
You Have Belonged To:

Youth Comission
Green Team Club
Girls on the Run
Education: I am learning at Los Gatos High School
Why do you want to be on the
selected Commission?:

I think being on the youth commision has been a great learning experience so far, I really like being able to share my opinion with others on how to make a change in our city.

Tell us about your skills,
experience, or interests that
relate to the Commission that
you feel would assist us in
considering your application:

I love thinking outside of the box.

My brother and I have ideas that the Youth Commission can help being to life.

I am able to brainstorm with a team and come with a good solution.

Please list your current
commitments:

Water Polo
Piano/Drums
What strengths do you possess
that you believe will make you a
successful commissioner?:

I have a interest to help make new ideas for the city of Monte Sereno. I am able to build off of other people's ideas. Also can put a lot of effort.

What do you see as the
important issues in Monte
Sereno?:

A lot of speed limit signs in Monte Sereno are covered by branches.

What strengths do you possess
that you believe will make you a
successful commissioner?:

I have a interest to help make new ideas for the city of Monte Sereno. I am able to build off of other people's ideas. Also can put a lot of effort.

What, if any, career interests do
you have currently?:

I like advertising and prompting but I also love cooking. I also have a lot of fun playing instruments for others.

City of Monte Sereno
Commission Application
Date Received: May 15, 2024
Applying for: Youth Commission
Name: Johann Jacob
Length of Residency: 10 years
Previously Held Elected or
Appointed Governmental
Positions:

Youth Commissioner 2022-2023, 2023-2024
Civic or Charitable Organizations
You Have Belonged To:

Boy Scouts Troop 2 Los Gatos (February 2019 - Present):
- Serving as Senior Patrol Leader (highest leadership position). Previously Assistant Senior Patrol Leader, Patrol Leader, and Webmaster. - Took weeklong National Youth Leadership Training and several Troop level leadership trainings
Member of Iron Claw Robotics Team at LGHS (2022 - Present) Education: Fisher Middle School (2019 - 2022)
Los Gatos High School (2022 - Present); currently a 10th grade student Why do you want to be on the
selected Commission?:

I want to continue being on the Youth Commission because it has been a good learning experience for me. I have developed good working relationships with the City Manager and found opportunities to contribute to City projects. I would like to also take on a leadership role in the Youth Commission.

Tell us about your skills,
experience, or interests that
relate to the Commission that
you feel would assist us in
considering your application:

I have a lot of leadership experience in Boy Scouts. As Senior Patrol Leader, I am in charge of managing my entire troop. As Assistant Senior Patrol Leader. I provided leadership to the whole troop and helped plan events. As patrol leader, I managed and ran my patrol (smaller group within troop). I am also on Iron Claw robotics team 972 in Los Gatos High School, where I write software for our robot.

Last summer (2023), I also implemented a survey for the City Residents on the upcoming Monte Sereno Community Center.

Please list your current
commitments:

I am in Boy Scouts and robotics, but I can find time for Youth Commission Meetings and activities.

What strengths do you possess
that you believe will make you a
successful commissioner?:

I have served on the Youth Commissioner already for 2 years. This year, I believe I was present for every meeting and activity. I also have a lot of leadership experience from Boy Scouts.

What do you see as the
important issues in Monte
Sereno?:

Important issues for the youth of Monte Sereno are mental wellbeing, outlets to channel energy into interests, recreational activities, and motivating youth towards community service activities.

What strengths do you possess
that you believe will make you a
successful commissioner?:

I have served on the Youth Commissioner already for 2 years. This year, I believe I was present for every meeting and activity. I also have a lot of leadership experience from Boy Scouts.

What, if any, career interests do
you have currently?:

I am interested in computer science, software development, robotics, engineering, and leadership.

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: NEW BUSINESS
Staff Contact: Steve Leonardis,
Department: City Manager
Title: Consider and Confirm the 2024 Monte Sereno Social Justice Award Winner Selected by the Monte Sereno Youth Commission
Recommendation(s):

Staff recommends the City Council confirm the selection of the 2024 Monte Sereno Social Justice award winner selected by the Monte Sereno Youth Commission at their May 28, 2024 Special meeting.

Background Information:

The Monte Sereno City Council in collaboration with the Monte Sereno Youth Commission created the Monte Sereno Social Justice Award program to establish an ongoing message for positive change regarding social justice matters in the greater City of Monte Sereno community. Submissions by local high school Juniors and Seniors are reviewed annually in May by the Monte Sereno Youth The Monte Sereno Social Justice Award winner is selected by the Monte Sereno Youth Commission and recognized at a Monte Sereno City Council meeting.

The winner is awarded a letter of recognition and a check for $1,000 payable to a non-profit charitable organization selected by the awardee.

This year, the City received one nomination for the award. At its May 28, 2024 Special Meeting, the Youth Commission unanimously selected Jane Wilde's submission for Opportunities to the Underprivileged (attached).

Fiscal Impact:

The City of Monte Sereno will issue a check to a charity chosen by the winner for $1,000. This year's recipient is Amor Ministries Inc. chosen by Jane Wilde. This award has been allocated in the City's FY2024-25 budget.

Public Noticing:

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

Attachments:

Social Justice Scholarship Award 2024
Monte Sereno Youth Commission Submission by Jane Wilde

Monte Sereno Social Justice Award
Summary:

The Monte Sereno City Council in collaboration with the Monte Sereno Youth Commission created the Monte Sereno Social Justice Award program to establish an ongoing message for positive change regarding social justice matters in the greater City of Monte Sereno community. Submissions by local high school Juniors and Seniors will be reviewed annually in the month of May by the Monte Sereno Youth Commission.

The winner of the Monte Sereno Social Justice Award will be selected by the Monte Sereno Youth Commission and subsequently recognized at a Monte Sereno City Council meeting. One recipient will be chosen annually for the award. The City of Monte Sereno will issue a letter of recognition and a check for $1,000 payable to a non-profit charitable organization selected by the awardee.

Vision Statement:
“The purpose of the Monte Sereno Social Justice Award Program is to establish an ongoing message for positive change regarding social justice in the greater Monte Sereno community by acknowledging students’ efforts in creating a more equal and inclusive community.” Eligibility:

The Monte Sereno Social Justice Award is available to local high school students in the greater City of Monte Sereno area. Examples include Saratoga High School, Los Gatos High School, Westmont High School, Mitty High School, Presentation High School, or others where residents of Monte Sereno attend high school presently or may attend high school in the future. To apply for award submission, applicants must maintain a 3.0 or higher GPA. Applicants must demonstrate a commitment to equality and social justice through active participation or leadership.

Next Steps:

To be considered for the Monte Sereno Social Justice Award, please complete the application below and submit to [email protected] by May 2, 2024. For general submission inquiries, please contact Gloisy Gonzalez-Langarica at (408) 354-7635. 18041 Saratoga-Los Gatos Road
Monte Sereno, California 95030-4299
Telephone: 408.354.7635
Fax: 408.395.7653
www.cityofmontesereno.org

Name*
Address*
Email*
Phone*
Writing or Rendering*
In 500 words or less, please explain what social justice means to you, and what you have accomplished to create positive change or make your community more inclusive (in lieu of a 500- word writing, applicants may submit an original rendering or artwork presenting a positive influence on social justice or inclusivity in the community). Please attach additional sheets if needed.

Organization of Choice*
Please include the name, address, phone number, and email address of the organization you would like to recognize with the $1,000 award, assuming you are selected the Monte Sereno Social Justice Award recipient. Please explain your affiliation with the organization and what the organization means to you, or why you selected the organization.

From: Jane Wilde
To: Gloisy Gonzalez-Langarica
Subject: Social Justice application-Jane Wilde
Date: Saturday, May 4, 2024 7:48:42 PM
Hello!
I hope all is well with you. I tried to apply for the Social Justice award a few days ago but my email somehow bounced. I thought I would send you my application directly this time. My application below:

To me, social justice is far beyond simply ensuring fairness and equality. Social justice is about making the world a better, overall more inclusive place and giving opportunities to the underprivileged. Over spring break, I was lucky enough to go with Saratoga Federated to Tijuana, Mexico, and build houses for the homeless people there. With the assistance of Amor Ministries, a non-profit group that lives, works, and hires locals in the community, we spent four days completing two separate houses. Our group donates supplies, money, and our time to build houses, while Amor works with the family before and after our visit, tackling the issue of homelessness at its root. Going on the trip gave me the opportunity to adopt a new-found sense of gratitude for my circumstances living in Los Gatos and allowed me to gain a deeper awareness of the significance of social justice. I left the experience with an overwhelming sense of fulfillment because I felt that we made a substantial difference in people’s lives. Not only was my experience with Amor immensely rewarding, but it also allowed me to make a much-needed positive impact on the world. If I were to win the Social Justice Scholarship I would donate it to Amor to support their mission to eradicate homelessness in the community. It would be incredibly meaningful to me to be able to contribute to an organization that has made such a significant impact, both on those it serves and on myself.

Los Gatos High School, Email: [email protected],
Organization I'd like to donate to: Amor Ministries Inc.:
3911 Cleveland Ave #3279, San Diego, CA 92163
619-662-1200
[email protected]

STAFF REPORT
Meeting: City Council - Jun 04 2024
Agenda Heading: NEW BUSINESS
Staff Contact: Reynold Samoranos,
Department: Finance Manager
Title: Consider and Accept the Fiscal Year 2022-2023 Audit Report Recommendation(s):

Staff recommends that the City Council consider and accept the Fiscal Year 2022-2023 Audit 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:
(1) City of Monte Sereno 2023 RC Final
(2) City of Monte Sereno 2023 MOIC Final
(3) City of Monte Sereno 2023 BFS Final

CITY OF MONTE SERENO

REQUIRED COMMUNICATIONS

FOR THE YEAR ENDED
JUNE 30, 2023

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CITY OF MONTE SERENO

REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2023
Table of Contents
Page
Required Communications .................................................................................................................. 1 Significant Audit Matters:

Qualitative Aspects of Accounting Practices ..................................................................... 1 Difficulties Encountered in Performing the Audit ............................................................. 2 Corrected and Uncorrected Misstatements ........................................................................ 2 Disagreements with Management ...................................................................................... 2 Management Representations .............................................................................................. 2 Management Consultations with Other Independent Accountants ................................... 2 Other Audit Findings or Issues ............................................................................................ 2 Other Matters .............................................................................................................................. 3

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REQUIRED COMMUNICATIONS
To the City Council of
the City of Monte Sereno, California
We have audited the basic financial statements of the City of Monte Sereno (City), California, for the year ended June 30, 2023. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing, as well as certain information related to the planned scope and timing of our audit. We have communicated such information orally during our discussion with the Mayor on September 6 2023. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies - Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted, and the application of existing policies was not changed during the year.

Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were:

Estimated Net Pension Liabilities and Pension-Related Deferred Outflows and Inflows of Resources: Management’s estimate of the net pension liabilities and deferred outflows/inflows of resources are disclosed in Note 6 to the financial statements and are based on accounting valuations determined by the California Public Employees Retirement System, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole.

Estimated Net OPEB Liabilities and OPEB–Related Deferred Outflows and Inflows of Resources:

Management’s estimate of the net OPEB liabilities and deferred outflows/inflows of resources are disclosed in Note 7 to the financial statements and are based on actuarial studies determined by a consultant, which are based on the experience of the City. We evaluated the key factors and assumptions used to develop the estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.
1

Estimate of Depreciation: Management’s estimate of the depreciation is based on useful lives determined by management. These lives have been determined by management based on the expected useful life of assets as disclosed in Note 2 to the financial statements. We evaluated the key factors and assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to the basic financial statements taken as a whole.

Disclosures - The financial statement disclosures are neutral, consistent, and clear.

Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole.

Professional standards require us to accumulate all known and likely uncorrected misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We have no such misstatements to report to the City Council.

Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations
We have requested certain representations from management that are included in a management representation letter dated May 20, 2024.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants.

Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.
2

Other Matters
We applied certain limited procedures to the required supplementary information that accompanies and supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the required supplementary information and do not express an opinion or provide any assurance on the required supplementary information.

We were engaged to report on the supplementary information that accompanies the financial statements, but is not required supplementary information. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.
******
This information is intended solely for the use of City Council and management and is not intended to be, and should not be, used by anyone other than these specified parties.

Pleasant Hill, California
May 20, 2024
3

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CITY OF MONTE SERENO

MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED JUNE 30, 2023

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CITY OF MONTE SERENO

MEMORANDUM ON INTERNAL CONTROL
FOR THE YEAR ENDED JUNE 30, 2023
Table of Contents
Page
Memorandum on Internal Control ................................................................................................................... 1 Schedule of Material Weakness ............................................................................................................... 3 Schedule of Other Matters ....................................................................................................................... 5 Current Status of Prior Year Material Weakness .................................................................................... 9

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MEMORANDUM ON INTERNAL CONTROL
To the City Council of
the City of Monte Sereno, California
In planning and performing our audit of the basic financial statements of the City of Monte Sereno (City) as of and for the year ended June 30, 2023, in accordance with auditing standards generally accepted in the United States of America, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and, therefore material weaknesses or significant deficiencies may exist that were not identified. In addition, because of inherent limitations in internal control, including the possibility of management override of controls, misstatements due to error or fraud may occur and not be detected by such controls. However, as discussed below, we identified certain deficiencies in internal control that we consider to be a material weakness.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency in internal control included on the Schedule of Material Weakness to be a material weakness.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe are opportunities for strengthening internal controls and operating efficiency.

Government Auditing Standards require the auditor to perform limited procedures on the City’s response to the findings identified in our audit and described in the accompanying Schedules and Current Status of Prior Year Material Weaknesses. The City’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response. 1

This communication is intended solely for the information and use of management, City Council, others within the organization, and agencies and pass-through entities requiring compliance with Government Auditing Standards, and is not intended to be and should not be used by anyone other than these specified parties.

Pleasant Hill, California
May 20, 2024
2

CITY OF MONTE SERENO

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF MATERIAL WEAKNESSES
2023-01: Treasurer’s Report to City Council
Criteria: The Treasurer’s Report is an important element of the City’s internal control structure. In order to be an effective control, reconciliations should be completed as soon as reasonably possible after each month-end, usually within 30-45 days of receipt of statements, and subsequently reviewed for accuracy.

Errors and un-reconciled differences should be researched, understood and corrected immediately, so as to prevent additional errors and a decrease in efficiency.

Condition: During our audit we noted that the January 2023 Treasurer’s Report was not submitted to the City Council until April 2023. The June 30, 2023 Treasurer’s Report was not submitted to the City Council until October 2023.

Cause: The City is behind on submitting the Treasurer’s Report.

Effect: Without timely completion of the Treasurer’s Report, the City Council is not made aware of the current investment position of the City.

Recommendation: The City should consider performing investment account reconciliations on a more frequent basis.
2023-02: Bank Reconciliation Timely Preparation
Criteria: Bank reconciliations are an important element of the Town’s internal control structure. In order to have an effective control, the Town should complete bank reconciliations as soon as possible after each month-end, usually within thirty days of receipt of statements, and subsequently reviewed for accuracy.

Both preparer and reviewer should sign and date as audit evidence. Errors and un-reconciled differences should be researched, understood and corrected immediately, so as to prevent additional errors and a decrease in efficiency.

Condition: June 2023 Bank Reconciliation did not have evidence of preparer and reviewer such as signatures and dates.

Cause: City staff is unaware that they need to add audit evidence such as signatures and dates after preparing and reviewing bank reconciliation
Effect: It is unclear whether the bank reconciliation was prepared and reviewed timely.

Recommendation: The City should add audit evidence when preparing and reviewing all bank reconciliations.
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CITY OF MONTE SERENO

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
2023:03: NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE The following comment represents new pronouncements taking affect in the next few years. We have cited them here to keep you informed of developments:

EFFECTIVE FISCAL YEAR 2023/24:

GASB 100 – Accounting for Changes and Error Corrections The primary objective of this Statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.

This Statement defines accounting changes as changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting entity and describes the transactions or other events that constitute those changes. As part of those descriptions, for (1) certain changes in accounting principles and (2) certain changes in accounting estimates that result from a change in measurement methodology, a new principle or methodology should be justified on the basis that it is preferable to the principle or methodology used before the change. That preferability should be based on the qualitative characteristics of financial reporting—understandability, reliability, relevance, timeliness, consistency, and comparability. This Statement also addresses corrections of errors in previously issued financial statements.

This Statement prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires that (a) changes in accounting principles and error corrections be reported retroactively by restating prior periods, (b) changes to or within the financial reporting entity be reported by adjusting beginning balances of the current period, and (c) changes in accounting estimates be reported prospectively by recognizing the change in the current period. The requirements of this Statement for changes in accounting principles apply to the implementation of a new pronouncement in absence of specific transition provisions in the new pronouncement. This Statement also requires that the aggregate amount of adjustments to and restatements of beginning net position, fund balance, or fund net position, as applicable, be displayed by reporting unit in the financial statements.

This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections, such as their nature. In addition, information about the quantitative effects on beginning balances of each accounting change and error correction should be disclosed by reporting unit in a tabular format to reconcile beginning balances as previously reported to beginning balances as restated.

Furthermore, this Statement addresses how information that is affected by a change in accounting principle or error correction should be presented in required supplementary information (RSI) and supplementary information (SI). For periods that are earlier than those included in the basic financial statements, information presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting principles.

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CITY OF MONTE SERENO

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
EFFECTIVE FISCAL YEAR 2024/25:

GASB 101 – Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability should be recognized for leave that has not been used if (a) the leave is attributable to services already rendered, (b) the leave accumulates, and (c) the leave is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. Leave is attributable to services already rendered when an employee has performed the services required to earn the leave. Leave that accumulates is carried forward from the reporting period in which it is earned to a future reporting period during which it may be used for time off or otherwise paid or settled. In estimating the leave that is more likely than not to be used or otherwise paid or settled, a government should consider relevant factors such as employment policies related to compensated absences and historical information about the use or payment of compensated absences. However, leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in a liability for compensated absences.

This Statement requires that a liability for certain types of compensated absences—including parental leave, military leave, and jury duty leave—not be recognized until the leave commences. This Statement also requires that a liability for specific types of compensated absences not be recognized until the leave is used.

This Statement also establishes guidance for measuring a liability for leave that has not been used, generally using an employee’s pay rate as of the date of the financial statements. A liability for leave that has been used but not yet paid or settled should be measured at the amount of the cash payment or noncash settlement to be made. Certain salary-related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities.

With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources.

Notes To Financial Statements
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as they identify it as a net change). In addition, governments are no longer required to disclose which governmental funds typically have been used to liquidate the liability for compensated absences.

6

CITY OF MONTE SERENO

MEMORANDUM ON INTERNAL CONTROL

SCHEDULE OF OTHER MATTERS
GASB 101 – Compensated Absences (Continued)
How the Changes in this Statement Will Improve Financial Reporting The unified recognition and measurement model in this Statement will result in a liability for compensated absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence and will eliminate potential comparability issues between governments that offer different types of leave.

The model also will result in a more robust estimate of the amount of compensated absences that a government will pay or settle, which will enhance the relevance and reliability of information about the liability for compensated absences.
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CITY OF MONTE SERENO

MEMORANDUM ON INTERNAL CONTROL

CURRENT STATUS OF PRIOR YEAR MATERIAL WEAKNESSES
2022-01: Capital Asset Detail
Criteria: Well-managed organizations should maintain records for all capital assets and the associated depreciation to ensure that they are reported properly in the entity-wide financial statements.

Condition: During the audit, we were informed that the City relies on the detail maintained by the auditor to report the capital assets are reporting in the entity-wide financial statements.

Cause: City staff has relied on the auditor to maintain and update the capital assets detail.

Effect: Without the City updating and maintain the capital assets detail, they are not taking ownership of those amounts and ensure they are accurate.

Recommendation: We recommend that the City staff maintain and update the capital asset details to ensure accuracy.

Current Status: The District has developed and maintained a detail of the capital assets of the City. The City also has adopted a formal capital asset policy.
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Financial Statements
June 30, 2023
City of Monte Sereno

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City of Monte Sereno
Table of Contents
June 30, 2023
Independent Auditor’s Report ..................................................................................................................... 1 Management’s Discussion and Analysis ..................................................................................................... 4 Basic Financial Statements
Statement of Net Position ............................................................................................................................... 12 Statement of Activities .................................................................................................................................... 13 Governmental Funds – Balance Sheet ............................................................................................................ 14 Reconciliation of the Governmental Funds Balance Sheet
with the Statement of Net Position ................................................................................................................. 15 Statement of Revenues, Expenditures and Changes in Fund Balances........................................................... 16 Reconciliation of the Net Change in Fund Balances –
Total Governmental Funds with the Statement of Activities .......................................................................... 17 Notes to Financial Statements ......................................................................................................................... 19 Required Supplementary Information
Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – General Fund ................................................................................................................. 40 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Law Enforcement Fund ................................................................................................. 41 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual – Gas Tax Fund ................................................................................................................ 42 Miscellaneous Plan – Cost-Sharing Multiple-Employer Defined Pension Plan – Schedule of the Proportionate Share of the Net Pension Liability/(Asset) ..................................................... 43 Miscellaneous Plan – Cost-Sharing Multiple-Employer Defined Pension Plan – Schedule of Pension Contributions ................................................................................................................. 44 Schedule of Changes in Total Other Post-Employment Benefits Liability and Related Ratios ............................................................................................................................ 45 Note to Budgetary Information ....................................................................................................................... 47 Supplementary Information
Non-Major Governmental Funds – Combining Balance Sheet ...................................................................... 50 Non-Major Governmental Funds – Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................................................................................................. 51 Independent Auditor’s Report on Internal Controls Over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .......................................................................................................................................... 53

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3 INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Monte Sereno, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Monte Sereno (City), California, as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

1

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Emphasis of a Matter
During the year ended June 30, 2023, it was noted that a correction was needed for beginning fund balances as noted in Note 9. As a result, beginning net position and fund balances at July 1, 2022, were both increased by $20,179.
2

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis and other required supplementary information as listed in the Table of Contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Supplementary Information, as listed in the Table of Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.

The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 20, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Pleasant Hill, California
May 20, 2024
3

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City of Monte Sereno
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
The following provides a narrative overview and analysis of the fiscal operations during the fiscal year ended June 30, 2023 for the City of Monte Sereno. The Management Discussion and Analysis is to be read in conjunction with the Basic Financial Statements.

FISCAL YEAR 2022-2023 FINANCIAL HIGHLIGHTS
• The City’s total net position was $4,819,476, which decreased by $819,196 from the prior year’s net position of $5,638,672.
• Total City total revenues were $5,142,039, while total expenses were $5,961,235. Total revenues in the prior year were $5,176,569 and total expenses were $4,952,311. The increase in revenues was due to increase in property taxes. • The City’s Unrestricted Net Position is $3,764,483, which is available for ongoing operations as well as other capital needs.

OVERVIEW OF THE ANNUAL FINANCIAL REPORT
This Annual Financial Report is in four parts:

1. Management’s Discussion and Analysis.

2. The Basic Financial Statements, which include the government-wide and fund financial statements, along with the notes to the financial statements.

3. Required supplementary information.

4. Combining statements for non-major governmental funds.

The Basic Financial Statements
The Basic Financial Statements are comprised of Government-Wide Financial Statements and Fund Financial Statements. These two sets of financial statements provide the reader two different viewpoints of the City’s financial activities and financial position.

The Government-Wide Financial Statements provide a long-term view of the City’s activities as a whole and comprise the Statement of Net Position and Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all of its capital assets and long-term liabilities on a full accrual basis, similar to the “basis” used by private corporations. The Statement of Activities provides information about the City’s revenues and expenses, also on a full accrual basis, with the emphasis on measuring net revenues and/or expenses for each of the City’s activities. The Statement of Activities explains in detail the change in Net Position for the fiscal year.

All of the City’s activities are required to be grouped into government activities and business-type activities. The entire amount in the Statement of Net Position and Statement of Activities is also required to be separated into governmental activities or business-type activities in order to provide a summary of these two activities as a whole. In the case of the City of Monte Sereno, there are no business-type activities as of June 30, 2023.

5

City of Monte Sereno
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
The Fund Financial Statements report the City’s operations in more detail than the government-wide statements and focus primarily on the short-term activities of the City’s general fund and other major funds. The Fund Financial Statements measure only current revenues and expenditures and fund balance; they exclude capital assets, long-term debt, and other long-term amounts from the balance sheets. Major funds account for the major financial activities of the City and are presented individually, while the activities of non-major funds are presented in summary, with supplementary schedules (i.e. combining statements) presenting the detail for each of these funds. Major funds are explained later in Management’s Discussion and Analysis.

The Government-Wide Financial Statements
The Statement of Net Position and the Statement of Activities present information about the following:

Governmental activities – All of the City’s basic services are considered to be governmental activities, including general government, community development, public safety, transportation, and cultural and leisure. These services are supported by general City revenues such as taxes, and by specific program revenues such as developer fees.

Government-wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole.

Fund Financial Statements
Fund financial statements provide detailed information about each of the City’s most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, is established by generally accepted accounting principles. Each major fund is presented individually, with all non-major funds summarized and presented in a single column. Subordinate schedules present the detail of these non-major funds. Major funds present the major activities of the City for the fiscal year, and may change from year to year as a result of changes in the pattern of the City’s activities.

Governmental fund financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Capital assets and other long-lived assets, along with long-term liabilities, are not presented in the governmental fund financial statements balance sheets.

Unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, and on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City’s near-term financing requirements.

Notes to the Financial Statement
Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes can be found immediately following the fund financial statements.
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City of Monte Sereno
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Required Supplementary Information
The Required Supplementary Information (RSI) follows the basic financial statements and includes a budgetary comparison schedule that includes reconciliation between the statutory fund balance for budgetary purposes and the fund balance for the General Fund and all major special revenue funds, as presented in the governmental fund financial statements, where applicable. RSI also includes the pension schedules and retiree health benefits schedules benefits.

Combining and Individual Fund Statements and Schedules
Combining and individual fund statements and schedules provide information for non-major governmental funds.

Government-Wide Analysis
Net position may serve over time as a useful indicator of a government’s financial position. The City’s largest assets include investments and capital assets.

Cash and investments increased by $672,308 from $5,791,988 in the prior year to $6,464,296 in the current year.

Receivables remained unchanged at $160,701. The outstanding receivable is due to a SB-2 Planning Grants Program received.

The City’s pension liabilities increased to a net balance of $188,003. The current year change is due to the pension plan net balance and a change in the actuarial assumptions.

Total OPEB liabilities increased by $137,053 to $842,950. Prior year was $705,897 due to changes in the actuarial assumptions.
$281,033 or 5.8% of the City’s net investment in capital assets is invested in capital assets compared to $291,048 or 5.2% in the prior year (e.g., land, buildings, general government infrastructure, equipment, etc.). There were no major capital asset additions in the current year and the decrease was related to depreciation.
$3,3764,483 or 78.1% of the City’s net position is unrestricted compared to $4,812,674 or 85.7% in the prior year. The unrestricted net position may be used to fulfill ongoing obligations to the City residents and creditors.
$773,960 or 16.1% of the City’s net position is subject to external restriction on how they may be used compared to $512,771 or 9.1% in the prior year. These restricted assets will be used primarily for capital projects and public safety improvements.
7

City of Monte Sereno
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
The following table shows a condensed statement of net position for the City for the current and the prior year.

Governmental Activities
2023 2022
ASSETS
Cash and investments $6,464,296 $5,791,988
Receivables
Taxes 196 196
Other 160,505 160,505
Net pension asset 867,343
Capital assets
Land and construction in progress 119,888 119,888
Depreciable capital assets, net 161,145 171,160
Total assets 6,906,030 7,111,080

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to OPEB 154,228 139,227 Deferred outflows of resources related to pensions 1,020,452 528,200 Total deferred outflows of resources 1,174,680 667,427

LIABILITIES
Accounts payable and accrued liabilities 1,310,962 1,240,250 Compensated absences payable - current 72,352 34,294
Total other postemployment benefits liability 842,950 705,897 Net pension liabilities 188,003
Total liabilities 2,414,267 1,980,441

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to OPEB 443,829 550,783 Deferred inflows of resources related to pensions 403,138 (369,210) Total deferred inflows of resources 846,967 181,573
NET POSITION (Note 8)
Net investment in capital assets 281,033 291,048
Restricted for:

Capital projects 683,436 422,247
Road and streetlight projects 90,524 90,524
Total restricted net position 773,960 512,771
Unrestricted net position 3,764,483 4,812,674
Total net position $4,819,476 $5,616,493
Statement of Net Position
Table 1
8

City of Monte Sereno
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
The City's charges for services decreased by $154,680 to $860,123. Prior year was $1,014,803. The current year decreased due mainly to a softening of planning fee and license and permit fee activities.

Property taxes increased by $252,909 to $2,771,991. Prior year was $2,519,082. The current year increase was due to an increase in the assessed valuation for properties within the City.

Total expenditures in FY 2023 was $5,961,235, $1,008,924 higher versus prior year. General government expenses increased by $2,592,449 to $4,503,191; Public Safety decreased by $1,217,917 to $1,244,694, Public Works decreased $355,719 to $185,750 and Community Development decreased by $9,889 to $27,600.

Governmental Activities
2023 2022
Revenues
Program revenues
Charges for services $860,123 $1,014,803
Operating contributions and grants 582,754 579,424
General revenues
Property taxes 2,771,991 2,519,082
Other taxes 618,170 689,375
Other 309,001 373,885
Total revenues 5,142,039 5,176,569
Expenses
General government 4,503,191 1,910,742
Public safety 1,244,694 2,462,611
Public works 185,750 541,469
Community development 27,600 37,489
Total expenses 5,961,235 4,952,311
Changes in Net Position (819,196) 224,258
Net Position - Beginning as Restated (Note 9) 5,638,672 5,370,055 Net Position - Ending $4,819,476 $5,594,313
Statement of Net Position
Table 2

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City of Monte Sereno
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Major Funds General Fund
General Fund Revenues - Revenues for the year ended June 30, 2023, increased by $116,820 or 3.3% to $3,699,162 from the prior fiscal year $3,582,342.
• Property taxes increased $252,909 or 10.0% from the previous fiscal year to $2,771,991. • Other Taxes decreased $71,25 or -10.3% from the previous fiscal to $618,170. • Other decreased $64,884 or -17.4% from the previous fiscal to $39,001.

General Fund Expenditures – General governmental expenditures including transfers out for the year ended June 30, 2023 increased $2,592,449 or 135.7% compared to the prior fiscal year to $4,503,191.

Law Enforcement Fund
Law Enforcement Fund Revenues, including transfers in for the year ended June 30, 2023, were $150,214, higher to $391,605 compared to the prior year. The transfer of $165.3k Law Enforcement Funds will be made in FY 2024.

Law Enforcement Fund Expenditures, for the year ended June 30, 2023, were comparable to the prior year and in line with the annual budget figures as expected.

Gas Tax Fund
Gas Tax Fund Revenues, including transfers in for the year ended June 30, 2023, were higher by $4,688 compared to the prior year primarily related to higher SB-1 Gas Tax by $4,372.

Gas Tax Fund Expenditures for the year ended June 30, 2023 has decreased by $5,366 to $135,989 compared to the prior fiscal year $141,355.

General Fund Budgetary Highlights
A comparison of the final budget to actual revenues and expenditures for the General Fund is presented in the required supplementary information section of this report.

Actual revenues were below the budgeted amounts by $60,242 or -1.2% to $5,142,039. The large variance was mainly in the property taxes ($382,159 surplus over the estimate), interest ($106,890 higher versus the estimate and the licenses and permits ($106,022 lower versus the estimate), not using a secured Grants for Annex Building Project ($362,195) and REAP Grant ($65,000) Capital Assets
The City’s investment in capital assets, net of accumulated depreciation, as of June 30, 2023, amounts to $281,523. This figure does not include City infrastructure such as roads and bridges. These figures may be included in future year’s financial statements. There were no significant additions to capital assets in the current fiscal year.

Additional information on capital assets can be found in footnote #5 to these financial statements.

10

City of Monte Sereno
Management’s Discussion and Analysis
For the Year Ended June 30, 2023
Long - Term Liabilities
The City’s long-term liabilities consist solely of compensated absences and employee benefits liabilities.

The compensated absences in the amount of $72,352 higher by $38,058 to prior year. The other postemployment benefits liabilities and net pension liabilities in the amount of $1,030,953 have increased by $325,056 or 46.0% compared to the prior year. The increase is mainly attributed to the increase in pension liabilities.

Economic Factors
The past few years the City has experienced limited but stable growth to property taxes. The City continues to be cautiously optimistic that the limited growth trend will continue over the next few years. License and permit fees activities has decreased in FY 2023 due mainly to higher interest rates.

The City Council of Monte Sereno hosted their annual goal setting session on June 2022. Council reaffirmed the adopted five goals that were developed for FY 2021 -2022. Those five adopted goals were captured by artist Melinda Walker in this artistic rendition of the meeting minutes. • Quality Public Service
• Community Character
• Enhanced Mobility
• Community Safety
• Environmental Sustainability

REQUEST FOR FINANCIAL INFORMATION
This financial report is designed to provide a general overview of the City of Monte Sereno’s finances for all of Monte Sereno’s residents, taxpayers, and customers. This financial report seeks to demonstrate the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of Monte Sereno, 18041 Saratoga-Los Gatos Road, Monte Sereno, California 95030. 11

CITY OF MONTE SERENO

STATEMENT OF NET POSITION
JUNE 30, 2023
Primary Government
Governmental
Activities
ASSETS
Cash and investments $6,464,296
Receivables
Taxes 196
Other 160,505
Capital assets
Land 119,888
Depreciable capital assets, net 161,145
Total assets 6,906,030

DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows of resources related to OPEB 154,228
Deferred outflows of resources related to pensions 1,020,452 Total deferred outflows of resources 1,174,680

LIABILITIES
Accounts payable and accrued liabilities 1,310,962
Compensated absences payable - current 72,352
Noncurrent Liabilities:

Net pension liability 188,003
Total other postemployment benefits liability 842,950
Total liabilities 2,414,267

DEFERRED INFLOWS OF RESOURCES
Deferred inflows of resources related to OPEB 443,829
Deferred inflows of resources related to pensions 403,138 Total deferred inflows of resources 846,967
NET POSITION (Note 9)
Net investment in capital assets 281,033
Restricted for:

Capital projects 683,436
Road and streetlight projects 90,524
Total restricted net position 773,960
Unrestricted net position 3,764,483
Total net position $4,819,476
See accompanying notes to financial statements
12

CITY OF MONTE SERENO

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Net (Expense)
Revenue and
Changes in
in Net Position
Program Revenues Primary Government
Operating
Charges for Grants and Governmental
Functions/Programs Expenses Services Contributions Activities Primary Government:

Governmental Activities:

General Government $4,503,191 $740,706 ($3,762,485)
Public safety 1,244,694 119,417 (1,125,277)
Public works 185,750 $582,754 397,004
Community development 27,600 (27,600)
Total Governmental Activities $5,961,235 $860,123 $582,754 (4,518,358) General revenues:

Taxes:

Property tax 2,771,991
Sales tax 13,967
Gas tax 159,503
Franchise tax 362,831
Real property transfer tax 81,869
Other revenue 309,001
Total general revenues 3,699,162
Change in Net Position (819,196)
Net Position - Beginning as Restated (Note 9) 5,638,672 Net Position - Ending $4,819,476
See accompanying notes to financial statements
13

GOVERNMENTAL FUNDS

BALANCE SHEET
JUNE 30, 2023
Law Gas Other Total
Enforcement Tax Governmental Governmental
General Fund Fund Funds Funds
ASSETS
Cash and investments $5,429,330 $391,605 $540,547 $102,814 $6,464,296 Receivables
Taxes 196 196
Other 160,000 500 5 160,505
Total Assets $5,589,526 $391,605 $541,047 $102,819 $6,624,997

LIABILITIES
Accounts payable and accrued liabilities $312,590 $223,141 $38,370 $574,101 Total Liabilities 312,590 223,141 38,370 574,101

FUND BALANCES
Fund balance (Note 9):

Restricted 168,464 $502,677 102,819 773,960
Unassigned 5,276,936 5,276,936
TOTAL FUND BALANCES 5,276,936 168,464 502,677 102,819 6,050,896 Total Liabilities, Deferred Inflows of Resources
and Fund Balances $5,589,526 $391,605 $541,047 $102,819 $6,624,997 See accompanying notes to financial statements

CITY OF MONTE SERENO
14

CITY OF MONTE SERENO
Reconciliation of the

GOVERNMENTAL FUNDS BALANCE SHEET
with the

STATEMENT OF NET POSITION
JUNE 30, 2023
Fund Balance - Total Governmental Funds $6,050,896
Amounts reported for Governmental Activities in the Statement of Net Position are different from those reported in the Governmental Funds because of the following:

CAPITAL ASSETS TRANSACTIONS
Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental funds. 281,033

LONG TERM ASSETS, LIABILITIES AND DEFERRED OUTFLOWS/INFLOWS OF RESOURCES The assets, deferred outflows of resources, liabilities and deferred inflows of resources below are not due and payable in the current period and therefore are not reported in the Funds:

Compensated absences (72,352)
Accounts payable and accrued liabilities (736,861)
Net pension liability (188,003)
Total other post employment liability (842,950)
Deferred outflows of resources related to pensions 1,020,452 Deferred outflows of resources related to OPEB 154,228
Deferred inflows of resources related to pensions (403,138) Deferred inflows of resources related to OPEB (443,829) NET POSITION OF GOVERNMENTAL ACTIVITIES $4,819,476
See accompanying notes to financial statements
15

CITY OF MONTE SERENO

GOVERNMENTAL FUNDS

STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED JUNE 30, 2023
Law Gas Other Total
Enforcement Tax Governmental Governmental
General Fund Fund Funds Funds

REVENUES
Property tax $2,577,879 $191,417 $2,695 $2,771,991
Sales tax 13,967 13,967
Gas Tax $159,503 159,503
Franchise fee 362,831 362,831
Real property transfer tax 81,869 81,869
Licenses and permits 739,502 739,502
Fines and penalities 1,204 1,204
Investment earnings 112,154 7,263 119,417
Intergovernmental/ other agencies 417,483 165,271 582,754 Other revenue 298,965 10,036 309,001
Total Revenues 4,605,854 356,688 166,766 12,731 5,142,039

EXPENDITURES
Current:

General government 3,114,803 2,996 3,117,799
Public safety 68,819 1,175,875 1,244,694
Public works 75,766 57,933 52,051 185,750
Community development 27,600 27,600
Capital outlay
Total Expenditures 3,286,988 1,175,875 60,929 52,051 4,575,843

EXCESS OF REVENUES
OVER (UNDER) EXPENDITURES 1,318,866 (819,187) 105,837 (39,320) 566,196

OTHER FINANCING SOURCES (USES)
Transfers in 855,260 133,380 11,790 1,000,430
Transfers out (1,000,430) (1,000,430)
Total Other Financing Sources (Uses) (1,000,430) 855,260 133,380 11,790 NET CHANGE IN FUND BALANCES 318,436 36,073 239,217 (27,530) 566,196

FUND BALANCES AT BEGINNING OF PERIOD
AS PREVIOUSLY STATED 4,949,750 38,544 374,280 99,947 5,462,521 PRIOR PERIOD ADJUSTMENT (Note 9) 8,750 93,847 (110,820) 30,402 22,179

FUND BALANCES AT BEGINNING OF PERIOD
AS RESTATED 4,958,500 132,391 263,460 130,349 5,484,700 FUND BALANCES AT END OF PERIOD $5,276,936 $168,464 $502,677 $102,819 $6,050,896 See accompanying notes to financial statements
16

CITY OF MONTE SERENO
Reconciliation of the

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
with the

STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis.

NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $566,196 Amounts reported for governmental activities in the Statement of Activities are different because of the following:

CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay and improvement expenditures are added back to fund balance Depreciation expense is deducted from fund balance (10,015) Retirements are deducted from the fund balance

NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change):

Compensated absences (38,058)
Accounts payable and accrued liabilities 13,221
Net pension liability and deferred outflows/inflows of resources related to pensions (1,335,442) Net OPEB liability and deferred outflows/inflows of resources related to OPEB (15,098) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES ($819,196) See accompanying notes to financial statements
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City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 1 – GENERAL
The City of Monte Sereno (the City) was incorporated in 1957, under the provisions of the State of California. The City operates under a Council-Manager form of government and provides the following services: streets, public improvement, planning and zoning, and general administration.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governments. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for governmental accounting and financial reporting principles.

Reporting Entity
A reporting entity is comprised of the primary government, component units, and other organizations that are included to ensure the financial statements are not misleading. The primary government of the City consists of all funds, departments, boards, and agencies that are not legally separate from the City.

Basis of Presentation
Government Wide Financial Statements
While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements.

Fund Financial Statements
The fund financial statements provide information about the City’s funds. The emphasis of fund financial statements is on major governmental funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. Major individual governmental funds are reported as separate columns in the fund financial statements.

The City reports the following major governmental funds:

The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those accounted for in another fund.

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

The Gas Tax Special Revenue Fund accounts for tax rate per gallon levied by the State of California on all gasoline purchases are allocated to cities throughout the State. These funds are restricted to expenditure for transit and street-related purposes.

19

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued During the course of operations, the City has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds included in governmental activities (i.e., the governmental funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column.

Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column.

Measurement Focus and Basis of Accounting
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available generally if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences, and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long- term debt and acquisitions under capital leases are reported as other financing sources.

Property taxes, sales taxes, transient occupancy taxes, utility user taxes, property transfer taxes, charges for services and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Fines, licenses, use of property, and permit revenues are not susceptible to accrual because they generally are not measurable until received in cash. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year-end). All other revenue items are considered to be measurable and available only when cash is received by the City.
20

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Capital Assets
Capital assets, which include property, plant and equipment, are stated at cost. Donated assets are recorded at their estimated acquisition value at the date of donation. The City defines capital assets as assets with an initial cost of more than $1,000 and an estimated useful life greater than one year.

Additions, improvements, and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred.

Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives:

Buildings 50 Years
Vehicles 4-10 Years
Furniture, fixtures, and equipment 5-50 Years
Deferred Inflows/Outflows of Resources
In addition to assets, the statement of net position will report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense) until then. In addition to liabilities, the statement of net position or balance sheet will report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position or fund balance that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

Interfund Transactions
With City Manager approval, resources may be transferred from one City fund to another. Transfers (1) are used to move revenues from the fund that statute or budget requires collecting them to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

Property Taxes
The County of Santa Clara assesses all properties; and it bills, collects, and distributes property taxes and special assessments as follows:

Secured/Unsecured
Lien dates January 1
Levy dates July 1
Due dates 50% on November 1 and February 1
Delinquent as of December 10 and April 10

21

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued The term “unsecured” refers to taxes on personal property other than real estate, land and buildings. These taxes are secured by liens on the property being taxed. Property tax revenue is recognized in accordance with applicable GASB pronouncements, that is in the fiscal year for which the taxes have been levied, provided they become available. Available means (a) due, or (b) past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter (not to exceed 60 days) to be used to pay liabilities in the current period. The County of Santa Clara remits the entire amount of the tax levy to the City (net of County administrative fees), and handles all delinquencies, retaining any interest and penalties.

Compensated Absences
Compensated absences include vacation pay. The City recognizes the liability for its compensated absences at year-end.

Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents
For financial statement reporting purposes, the City considers cash and cash equivalents as short-term highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates.

Because the only investment held by the funds is the Local Agency Investment Fund (LAIF), which meets the definition of a cash equivalent, the entire pooled balance is reported as “cash and investments.” Fund Balance Classification
The governmental fund financial statements present fund balances based on classifications that comprise a hierarchy that is based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the respective governmental funds can be spent. The classifications used in the governmental fund financial statements are as follows:

Nonspendable: This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) are legally or contractually required to be maintained intact. The City did not have any nonspendable resources as of June 30, 2023.

22

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued Restricted: This classification includes amounts for which constraints have been placed on the use of the resources either (a) externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of other governments, or (b) imposed by law through constitutional provisions or enabling legislation. The City has classified traffic safety fines and grants as being restricted because their use is restricted by the terms of the grant and state statute for traffic safety expenditures. Gas taxes are restricted by state statute for use on road and street repair and maintenance projects. Loma Serena Street Lighting District and Rose Andrews Street Lighting District funds are classified as restricted because the use of these funds are restricted for operations and maintenance of the respective light districts, as imposed by the municipal code. Finally, storm drainage has been classified as restricted because these funds are collected from developers and set aside for capacity purposes, as mandated by state statute.

Committed: This classification includes amounts that can be used only for specific purposes pursuant to constraints imposed by formal action of the City Council. These amounts cannot be used for any other purpose unless the City Council removes or changes the specified use by taking the same type of action (ordinance or resolution) that was employed when the funds were initially committed. This classification also includes contractual obligations to the extent that existing resources have been specifically committed for use in satisfying those contractual requirements. The City did not have any committed resources as of June 30, 2023.

Assigned: This classification includes amounts that are constrained by the City’s intent to be used for a specific purpose but are neither restricted nor committed. This intent can be expressed by the City Council or the City manager, to whom this authority has been formally delegated by the City council.

This classification also includes the remaining positive fund balance for all governmental funds except for the General Fund.

Unassigned: This classification includes the residual fund balance for the General Fund. The Unassigned classification may also include negative residual fund balance of any other governmental fund that cannot be eliminated by offsetting of Assigned fund balance amounts. However, the City did not have any negative residual fund balances in any other governmental funds.

Use of Restricted Resources
The City would typically use restricted fund balances first, followed by committed resources, and then assigned resources, as appropriate opportunities arise, but reserves the right to selectively spend unassigned resources first to defer the use of these other classified funds.

Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The City categorizes its fair value measurements within the fair value hierarchy established by GAAP. The fair value hierarchy categorizes the inputs to valuation techniques used to measure fair value into three levels based on the extent to which inputs used in measuring fair value are observable in the market.

23

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 inputs are inputs - other than quoted prices included within level 1 - that are observable for an asset or liability, either directly or indirectly. • Level 3 inputs are unobservable inputs for an asset or liability.

If the fair value of an asset or liability is measured using inputs from more than one level of the fair value hierarchy, the measurement is considered to be based on the lowest priority level input that is significant to the entire measurement.

NOTE 3 – CASH AND INVESTMENTS
The City’s dependence on property tax receipts requires it to maintain significant cash reserves to finance operations during certain portions of the year. The City pools cash from all sources so that it can safely invest at maximum yields, while individual funds can make expenditures at any time. All investments are carried at fair value.

Summary of Deposits and Investments
Cash and Cash equivalents as of June 30, 2023, consist of the following at fair value:

Policies and Practices
The City is authorized under California Government Code and the City’s investment policy to make direct investments in U.S. Treasury instruments and securities of the U.S. Government, the Local Agency Investment Fund (LAIF), and federally insured deposits in commercial banks and savings and loan associations in the local area.

The City’s investments were in compliance with the above provisions as of and for the year ended June 30, 2023.

General Authorizations
The table below identifies the investment types that are authorized for the City by the California Government Code. Limitations as they relate to interest rate risk and concentration of credit risk are indicated in the schedules below:

Cash on hand $120
Cash with financial institutions 6,310,788
State Investment Pool 153,388
Total deposits and investments $6,464,296
24

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 3 – CASH AND INVESTMENTS - Continued
Authorized Investment Type
Maximum
Remaining
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Local Agency Investment Fund (LAIF) N/A None $75 Million Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City manages its exposure to interest rate risk by purchasing only short- term investments as necessary to provide the cash flow and liquidity needed for operations.

As of June 30, 2023, the City had the following investments. All investments are in the State’s investment pool.

Concentration of Credit Risk
The City’s investment policy contains no limitations on the amount that can be invested in any one issuer beyond the amount stipulated by the California Government Code.

Custodial Credit Risk - Deposits
This is the risk that, in the event of a bank failure, the City's deposits may not be returned. The City’s policy, as well as the California Government Code, requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105% of the secured deposits.

As of June 30, 2023, the City's bank balance of $6,310,788 is either insured or collateralized with securities held by the pledging financial institution's trust department or agent, but not in the City’s name.

Custodial Credit Risk - Investments
This is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. Neither the California Government Code nor the City’s investment policy contains legal or policy requirements that would limit the exposure to custodial risk.

Fair Average
Value Maturity
State Investment Pool $153,388 260
25

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 3 – CASH AND INVESTMENTS - Continued
Investment in the State Investment Pool
The City is a voluntary participant in the LAIF that is regulated by California government code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in the pool is reported in the accompanying financial statement at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, and is recorded on the amortized cost basis. The pool is not registered with the Securities and Exchange Commission (SEC) and is not rated.

The City recognizes the fair value measurement of its investments on a recurring basis, based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. Investments in the Local Agency Investment Funds/State Investment Pool are not measured using the input levels above because the City's transactions are based on a stable net asset value per share. All contributions and redemptions are transacted at $1.00 net asset value per share.

NOTE 4 – INTERFUND TRANSFERS
With Council approval, resources may be transferred from one City fund to another. Transfers (1) are used to move revenues from the fund that statute or budget requires to be collected to the fund that statute or budget requires to expend them, and (2) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

Transfers In Transfers Out
General Fund $1,000,430
Special Revenue Funds:

Law Enforcement Fund $855,260
Gas Tax Fund 133,380
Nonmajor Funds 11,790
Total $1,000,430 $1,000,430

26

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 5 – CAPITAL ASSETS
The City reports all capital assets, in the Government-Wide Statement of Net Position. The City reports infrastructure using the basic approach.

The following table presents the capital assets activity for the year ended June 30, 2023.

Balance at Balance at
June 30, 2022 Additions June 30, 2023
Capital assets, not being depreciated:

Land $119,888 $119,888
Total capital assets not being depreciated 119,888 - $119,888 Capital assets being depreciated:

Buildings Improvements 409,663 409,663
Computer Equipment 46,395 46,395
Office Equipment 39,563 39,563
Total capital assets being depreciated 495,621 - 495,621 Less accumulated depreciation for:

Buildings Improvements 247,162 $8,125 255,287
Computer Equipment 45,401 994 46,395
Office Equipment 31,898 896 32,794
Total accumulated depreciation 324,461 10,015 334,476
Net capital assets being depreciated 171,160 10,015 161,145 Total capital assets, net $291,048 $10,015 $281,033
Depreciation expense was charged to the general government function.

27

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 6 – PENSION PLAN
General Information about the Pension Plans
Plan Description – All qualified permanent employees are eligible to participate in the City’s Miscellaneous Employee Pension Plan, cost-sharing multiple employer defined benefit pension plan administered by the California Public Employees Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and may be amended by City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. www.calpers.ca.gov.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 to 52 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the California Public Employees’ Retirement Law.

The Plans’ provisions and benefits in effect at June 30, 2023, are summarized as follows:

Hire date Prior to January 1, 2013 Starting January 1, 2013 Formula 2.0% @ 55 2.0% @ 62
Benefit vesting schedule 5 years of service 5 years of service Benefit payments Monthly for life Monthly for life
Minimum retirement age 50 52
Required employee contribution rates 7.00% 6.75%
Required employer contribution rates 10.32% 7.47%
Miscellaneous
Contributions – Section 20814(c) of the California Public Employees’ Retirement law requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in rate. Funding contributions for both Plans are determined annual on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rates of employees.

For the year ended June 30, 2023, the contributions to the Plan were $78,418.

28

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 6 – PENSION PLAN – Continued
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2023, the City’s reported net pension liability for its proportionate share of the pension liability of the Plan is as follows:

Miscellaneous
Proportionate Share of Net Pension Liability $188,003
The City’s net pension liability for the Plan is measured as the proportionate share of the collective net pension liability. The net pension liability of the Plan is measured as of June 30, 2022, and the total pension liability for the Plan used to calculated the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 using standard actuarial update procedures.

The City’s proportion of the collective net pension liability was based on a projection of the City’s longterm share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined.

The City’s proportionate share of the net pension liability for each Miscellaneous Plans as of June 30, 2022 is as follows:

Miscellaneous Plans
Proportion - June 30, 2021 0.04568%
Proportion - June 30, 2022 0.00402%
Change - Increase (Decrease) -0.04166%
In the current fiscal year, the City recognized pension expense of $1,335,442. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Deferred
Outflows Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $78,418 Differences between actual and expected experience 3,775 ($2,529) Changes in assumptions 19,265
Difference between proportional and actual contributions 250,528 (224,150) Adjustment due to differences in proportions 634,029 (176,459) Net differences between projected and actual earnings on plan investments 34,437
Total $1,020,452 ($403,138)

29

City of Monte Sereno
Notes to Financial Statements
June 30, 2023
NOTE 6 – PENSION PLAN – Continued
The amount of $78,418 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

Years Ending June 30
2024 $209,524
2025 194,972
2026 113,338
2027 21,062
$538,896
Actuarial Assumptions – The total pension liabilities in the June 30, 2021, actuarial valuations were determined using the following actuarial assumptions.

Valuation Date
Measurement Date
Actuarial Cost Method
Actuarial Assumptions:

Discount Rate
Inflation
Projected Salary Increase
Investment Rate of Return (1)
Mortality (2)
(1) Net of pension plan investment expenses; includes inflation. (2) The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of Mortality improvements using the Society of Actuaries Scale 80% of scale MP 2020. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 2001 to 2019) that can be found on the CalPERS website.

2.30%
Varies by Entry Age and Service

6.90%
Derived using CalPERS Membership Data for all Fund
June 30, 2021
June 30, 2022
Entry-Age Normal Cost Method

6.90%
Discount Rate – The discount rate used to measure the total pension liability was 7.15%. The projection of cash flows used to determine the discount rate for each Plan assumed contributions from all plan members in the Public Employees Retirement Fund (PERF) will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. 30