Monte Sereno City Council
June 16, 2026

AGENDA
City of Monte Sereno
Tuesday, June 16, 2026
City Council
7:00 PM
Monte Sereno City Council Chambers - 18041 Saratoga -
Los Gatos Road, Monte Sereno, Ca 95030

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Any member of the public who needs accommodations should email or call the City Manager who will use their best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests. In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Manager at 408-498-5285 or [email protected]. If requested of the City Manager, agendas and documents in the agenda packet can be made available in appropriate alternative formats to persons with a disability Page

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

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

ANNOUNCEMENTS

PRESENTATIONS

1. Presentation by San Jose Water

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 18, 2026 Special City Council Meeting and the May 19, 2026 and June 2, 2026 Regular City Council Meetings Staff recommends approval of the Minutes of the May 18, 2026 Special City Council Meeting and the May 19, 2026 and June 2, 2026 Regular City Council Meetings
Staff Report -SR-22-148 - Pdf
6 - 17

3. Approve Warrant List Dated June 16, 2026 in the Amount of $129,925.37 and Authorize the City Manager to Issue Certain Payments in July 2026
Staff recommends the City Council approve the Warrant List and authorize the City Manager to issue certain payments in July 2026.

Staff Report - SR-26-102 - Pdf
18 - 26

4. Adoption of a Resolution Establishing and Fixing the Amount of Special Real Property Tax Levy for Police Protection Purposes for the Fiscal Year 2026-2027
Staff recommends that the Council adopt the resolution establishing and fixing the amount of special real property tax levy for police protection purposes for Fiscal Year 2026-2027.
27 - 37

Staff Report - SR-26-089 - Pdf

5. Adoption of a Resolution Calling A Municipal Election To Be Held On Tuesday, November 3, 2026, And Requesting Consolidation And Performance Of Services From The County Of Santa Clara Registrar Of Voters
Staff recommends that the City Council adopt a resolution ordering and calling a General Municipal Election to be held in the City of Monte Sereno on November 3, 2026 and requesting the consolidation and performance of services from the County of Santa Clara Registrar of Voters.

Staff Report - SR-26-090 - Pdf
38 - 41

6. Adoption of a Resolution to Update the Fee Schedule for User and Regulatory Fees to Increase fees by 3% for an Annual Inflationary Increase
Staff recommends that the City Council adopt the draft resolution to update the fee schedule for user and regulatory fees increase fees by 3% for an inflationary increase.

Staff Report - SR-26-084 - Pdf
42 - 112

7. Adoption of a Resolution Setting the Appropriations Limit for Fiscal Year 2026-27.

Staff recommends the City Council adopt a resolution setting the appropriations limit for Fiscal Year 2026-27 based upon the price factor and population data provided by the State of California Department of Finance.

Staff Report - SR-26-098 - Pdf
113 - 116

8. Adoption of a Resolution to Terminate the Monte Sereno City Council Potential Police Service Parcel Tax Ad Hoc Committee
Staff recommends the City Council adopt a resolution to terminate the Potential Police Service Parcel Tax Ad Hoc Committee.

Staff Report - SR-26-097 - Pdf
117 - 122

9. Adoption of a Resolution to Adopt a List of Projects for Fiscal Year 2026/27 Funded by SB1: 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 2026/27 by SB1: The Road Repair and Accountability Act of 2017.

Staff Report - SR-26-104 - Pdf
123 - 128

10. Authorize the City Manager to Execute a Professional Services Agreement with Eide Bailly for Annual Financial Audit Services Staff recommends that the City Council authorize the City Manager to 129 - 166

execute the Professional Services Agreement with Eide Bailly for annual financial audit services.

Staff Report - SR-26-071 - Pdf

PUBLIC HEARINGS

11. Adoption of the Fiscal Year 2026/2027 City Manager’s Proposed Budget Staff recommends that the City Council adopt the Fiscal Year 2026/2027 City Manager’s proposed budget.

Staff Report - SR-26-093 - Pdf
167 - 178

UNFINISHED BUSINESS

12. Consider Adoption of a Resolution to Amend the City of Monte Sereno Regulations and Guidelines for the Conduct of Public Meetings Staff recommends that the City Council consider adoption of a Resolution to Amend the City of Monte Sereno Regulations and Guidelines for the Conduct of Public Meetings
Staff Report - SR-26-100 - Pdf
SB707 Update Presentation
179 - 229

NEW BUSINESS

13. Consideration and Appointment of a Resident as a Monte Sereno Representative on the Valley Transportation Authority Bicycle and Pedestrian Advisory Committee
Staff recommends that the City Council consider and appoint a resident as a Monte Sereno representative on the Valley Transportation Authority Bicycle and Pedestrian Advisory Committee.

Staff Report - SR-26-099 - Pdf
230 - 232

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.

Toren
Silicon Valley Animal Control Authority
Cities Association – Board of Directors
Cities Association – Legislative Action Committee
Valley Transportation Authority Policy Advisory Committee

Mekechuk
West Valley Stormwater Authority
West Valley Solid Waste Management Authority Board
Silicon Valley Clean Energy Authority
Santa Clara County Recycling and Waste Reduction Commission

Craig
Monte Sereno Youth Commission
Santa Clara County Library JPA
Shannon
Santa Clara Valley Water Commission
West Valley Sanitation District Board
Cities Association - Cities Selection Committee
Allan
Association of Bay Area Governments
League of California Cities Peninsula Division
West Valley Mayors & Managers
Mayors of Santa Clara County
Santa Clara County Mayors Group

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.

14. Council Tentative Council Meeting Calendar 2026 233 - 239

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

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

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Approve the Minutes of the May 18, 2026 Special City Council Meeting and the May 19, 2026 and June 2, 2026 Regular City Council Meetings Recommendation(s):

Staff recommends approval of the Minutes of the May 18, 2026 Special City Council Meeting and the May 19, 2026 and June 2, 2026 Regular City Council Meetings 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:
05-18-26 Special Meeting Minutes DRAFT
05-19-26 Regular Meeting Minutes DRAFTv2
06-02-26 Regular Meeting Minutes DRAFT

MONTE SERENO CITY COUNCIL

MEETING MINUTES

SPECIAL MEETING
2:00 p.m.

May 18, 2026

MEETING CALLED TO ORDER
At 2:02 p.m., Vice Mayor Shannon called the meeting to order.

ROLL CALL
Present – Chambers: Councilmember Toren, Councilmember Mekechuk, Councilmember Craig and Vice Mayor Shannon
Present – Remote: None

Absent: Mayor Allan
Staff: City Clerk Gonzalez-Langarica, City Attorney Powell, City Manager Perkins
Staff – Remote: None

UNFINISHED BUSINESS

1. Receive an Informational Update on the Potential Police Services Parcel Tax and Provide Direction to Staff
City Manager Perkins provided a staff report and was available to assist with answering questions from the Council.

Laura Crotty and Bonnie Moss with Clifford Moss provided a report and answered questions from the Council.

Vice Mayor Shannon opened the Item for Public Comment.

Public Comment:
• Resident Levine – Spoke in favor with the recommendation given by Clifford Moss.

With no one else wishing to speak, Vice Mayor Shannon closed Public Comment.

Discussion ensued.

Direction was given to staff to have this item placed on the future City Council agenda in December.

ADJOURN
The meeting of the Special City Council Meeting adjourned at approximately 3:21 p.m.

Lionel M. Allan, Mayor
ATTEST:

Gloisy Gonzalez-Langarica, City Clerk

MONTE SERENO CITY COUNCIL MEETING MINUTES

REGULAR MEETING
7:00 p.m.

May 19, 2026

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

PLEDGE OF ALLEGIANCE
Council lead the Pledge of Allegiance.

ROLL CALL
Present – Chambers: Councilmember Toren, Councilmember Craig, Councilmember Mekechuk and Vice Mayor Shannon
Present – Remote: None

Absent: Mayor Allan
Staff: City Clerk Gonzalez-Langarica, City Attorney Powell, City Manager Perkins
Staff – Remote: None

ORDERS OF THE DAY
City Manager requested Item #4 be removed from the Consent Calendar and to be placed at a future meeting.

ANNOUNCEMENTS
None.

PRESENTATIONS
None.

ORAL COMMUNICATIONS
None.

WRITTEN COMMUNICATIONS
None.

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

1. Approve the Minutes of the May 5 2026 Special and Regular City Council Meeting

2. Approve Warrant List Dated May 19, 2026 in the Amount of $59,213.33

3. Consider Adoption of a Resolution Declaring Hazardous Vegetation (Brush) a Public Nuisance Vice Mayor Shannon opened the Consent Calendar for Public Comment. With no one wishing to speak, Vice Mayor Shannon closed Public Comment.

MOTION: Motion by Councilmember Craig to approve the Consent Calendar.

Seconded by Councilmember Mekechuk.

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

PUBLIC HEARING
None.

UNFINISHED BUSINESS
None.

NEW BUSINESS

5. Receive an Update from the Two Monte Sereno Residents Who Participated in the 2025-2026 Leadership Los Gatos Program
City Manager Perkins provided a staff report and answered questions from the Council.

Sponsored resident Zeidler spoke on her experience with the program.

Discussion ensued.

Vice Mayor Shannon opened the Item for Public Comment. With no one wishing to speak, Vice Mayor Shannon closed Public Comment.

No action needed.

6. Review of the Fiscal Year 2026/2027 City Manager’s Proposed Budget and Provide Direction to Staff
City Manager Perkins provided a staff report and answered questions from the Council.

Finance Consultant Carol Atwood was available to assist with questions from the Council.

Discussion ensued.

Vice Mayor Shannon opened the Item for Public Comment. With no one wishing to speak, Vice Mayor Shannon closed Public Comment.

Staff were given directions.

COMMITTEE/COMMISSION REPORTS
Councilmember Toren thanked Vice Mayor Shannon for attending the Cities Association meeting in his absence. Councilmember Toren reported there was no meeting for the Silicon Valley Animal Control Authority. The Valley Transportation Authority Policy Advisory Committee met and had several items of discussion. Many of the action items on the agenda, one of the items of discussion was a congestion management program.

Councilmember Mekechuk reported Silicon Valley Clean Energy Board of Directors had a closed

session last week on Friday, of which there was nothing to report. The next board meeting is scheduled for Wednesday, June 10, 2026. The Executive Committee is scheduled to meet this Friday morning. The Finance Committee is scheduled to meet on May 28th. The Santa Clara County Recycling and Waste Reduction Commission is scheduled to meet on June 24th. The West Valley Solid Waste Management Authority Board met Thursday, May 7th and approved the budget and work plan. The next meeting is scheduled in September. West Valley Stormwater Authority is also scheduled for September, right after the West Valley Solid Waste Management Authority.

Councilmember Mekechuk shared the new collection rate, starting July 1,st is increasing for Monte Sereno by 3.9%.

Councilmember Craig shared he attended the grand reopening of the Campbell Library where there were about 2,000 attendees. Overall turnout was good and the library has now been modernized.

Vice Mayor Shannon reported she attended the Cities Association meeting on behalf of Councilmember Toren last Thursday. Vice Mayor Shannon explained that the focus this year is on emergency response and cities being prepared for emergencies. There was also a presentation by the Gilroy Office of Emergency Management and the Palo Alto Office of Emergency Services about what cities are doing to stay prepared.

COUNCILMEMBER COMMENTS
Councilmember Toren shared that he recently met with both the Mayor of Saratoga Chuck Page and Councilmember of Town of Los Gatos Matthew Hudes and discussed the structure of the West Valley Wildfire Council. Councilmember Toren also shared he met with Monica Faria from PG&E and discussed how PG&E is doing incredible things to stay involved with emergency preparedness.

Lastly, he shared he and his wife went on the Wimberly Walkway and expressed the area needs some maintenance. Councilmember Toren suggested there should be a citizen group that could maintain it on a regular basis, as it is a valuable point of interest in the community.

Councilmember Craig commented on a post on Nextdoor and suggested Council keep up with any potential comments posted on this site by residents. Councilmember Craig also shared a resident expressed having difficulties finding the police contract online and would like to see the City’s website have a better search engine.

Councilmember Mekechuk shared he attended the Octoberfest kickoff and expressed it was very good to meet other people in the community. He shared this year it is scheduled for September and asks that residents and Council do their best to attend.

CITY MANAGER’S REPORT
City Manager Perkins shared that the City Council authorized an agreement with the Town of Los Gatos to participate in a joint evacuation and emergency plan, and the kickoff meeting was held today. This 18-month project is underway. Lastly, she shared Monte Sereno is short-staffed this week and there are notices up on the front doors, as well as on the City website, about some reduced office hours.

FUTURE AGENDA ITEMS

7. Council Tentative Council Meeting Calendar 2026
Councilmember Toren shared he has some ideas on communication for the public, that he would like to share on a future agenda.

Councilmember Mekechuk expressed interest in having a report on the creation of an ad hoc committee for a Climate Resilience District on a future agenda.

ADJOURN
Vice Mayor Shannon adjourned the meeting at approximately 8:41 p.m.

Lionel M. Allan, Mayor
ATTEST:
____________________________________
Gloisy Gonzalez-Langarica, City Clerk

MONTE SERENO CITY COUNCIL MEETING MINUTES

REGULAR MEETING
7:00 p.m.

Remote Participation:

Washington Hilton
1919 Connecticut Avenue
NW Washington DC, 20009
June 2, 2026

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

PLEDGE OF ALLEGIANCE
Council lead the Pledge of Allegiance.

ROLL CALL
Present – Chambers: Councilmember Mekechuk, Vice Mayor Shannon and Mayor Allan Present – Remote: Councilmember Craig and Councilmember Toren

Absent: None
Staff: City Clerk Gonzalez-Langarica, City Attorney Powell, City Manager Perkins
Staff – Remote: None

ORDERS OF THE DAY
None.

ANNOUNCEMENTS
None.

PRESENTATIONS

1. Assistant General Manager Greg Richardson with Santa Clara Valley Transportation Authority Government Affairs gave a presentation on VTA’s draft local investment plan.

ORDERS OF THE DAY
Mayor Allan requested to move Item #4 under New Business to go after the Presentation.

NEW BUSINESS

4. Consider and Appoint Members to the 2026-2027 Monte Sereno Youth Commission City Clerk Gonzalez-Langarica provided a staff report and answered questions from the Council.

Applicants that addressed Council
• Jeremias Stauch
• Aradhita Singh
• Stella Zeidler
• Corinne Chou
• Makayla Murphy
• Ray He
• Regina Hernandez-Gazal
• Victor Zhang
• Sherlyn Jung
• Sheeva Heidari
Discussion ensued.

Mayor Allan opened the Item for Public Comment. With no one wishing to speak, Mayor Allan closed Public Comment.

MOTION: Motion by Councilmember Mekechuk to appoint the five (5) returning Commissioners Jeremias Stauch, Aradhita Singh, Stella Zeidler, Corinne Chou and Louis Chen from last year for this 2026-27 term and direct staff to return with a resolution establishing a nonvoting class for the remaining eight (8) applicants Makayla Murphy, Ray He, Regina Hernandez-Gazal, Victor Zhang, Jay Gemmel, Matteo Gemmel, Sherlyn Jung and Sheeva Heidari. Seconded by Councilmember Toren.

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

ORAL COMMUNICATIONS
Resident Stephanie expressed concerns about traffic safety near Daves Elementary school and suggested having a bicycle and pedestrian infrastructure put in place for safety.

WRITTEN COMMUNICATIONS
None.

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

2. Approve Warrant List Dated June 2, 2026 in the Amount of $160,344.36

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

MOTION: Motion by Vice Mayor Shannon to approve the Consent Calendar.

Seconded by Councilmember Mekechuk.

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

PUBLIC HEARING

3. Accept a Report on the Status of the City’s Vacancies, Recruitment, and Retention Efforts Pursuant to Assembly Bill 2561
City Manager Perkins provided a staff report and answered questions from the Council.

Discussion ensued.

Mayor Allan opened the Item for Public Hearing. With no one wishing to speak, Mayor Allan closed Public Hearing.

No action required.

UNFINISHED BUSINESS
None.

NEW BUSINESS

5. Discuss a Potential Friendship City Agreement
City Manager Perkins provided a staff report and answered questions from the Council.

Councilmember Mekechuk provided information on establishing a friendship city with a municipality of Japan.

Discussion ensued.

Mayor Allan opened the Item for Public Comment. With no one wishing to speak, Mayor Allan closed Public Comment.

MOTION: Motion by Mayor Allan that Council ask Councilmember Mekechuk to do further research and report back at a future meeting. Seconded by Vice Mayor Shannon.

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

6. Consideration of a Letter of Opposition to SB 866 (Blakespear) Homeless Housing, Assistance, and Prevention Program: Housing Element
City Manager Perkins provided a staff report and answered questions from Council.

Discussion ensued.

Mayor Allan opened the Item for Public Comment. With no one wishing to speak, Mayor Allan closed Public Comment.

MOTION: Motion by Councilmember Craig to support drafting a letter to oppose SB 866 and include the letter of information specific to the City of Monte Sereno. Seconded by Councilmember Mekechuk.

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

COMMITTEE/COMMISSION REPORTS
Councilmember Toren reported on the Silicon Valley Animal Control Authority’s next meeting is scheduled for some time in July. The Cities Association is scheduled to meet June 11, 2026, where the focus will be on emergency preparation response and recovery. The next meeting for Valley Transportation Authority Policy Advisory Committee is scheduled for August 13, 2026.

Councilmember Mekechuk reported that the Finance Committee of Silicon Valley Clean Energy Authority met last week and they have a board meeting scheduled for next week. Councilmember Mekechuk shared that Silicon Valley Clean Energy increased their rebate demand amount for heat pump water heaters.

Councilmember Craig stated he had nothing to report.

Vice Mayor Shannon stated she had nothing to report.

Mayor Allan shared he had nothing to report.

COUNCILMEMBER COMMENTS
Councilmember Mekechuk commented that the recently added art piece placed in the back of the Council Chamers brightens up the room. Lastly, he wished Councilmember Craig to get well soon.

Vice Mayor Shannon commented that both she and Mayor Allan will be attending the Cities Associations Summer Membership event next week.

Mayor Allan commented he is pleased to see how much the youth want to get involved in government from today’s Youth Commission applicants.

CITY MANAGER’S REPORT
City Manager Perkins shared that a seat on the Site and Architectural Commission has opened.

Notice of recruitment has been posted. Applications will be consideration at the first meeting in August.

FUTURE AGENDA ITEMS

7. Council Tentative Council Meeting Calendar 2026
Councilmember Toren expressed interest in having an item on communication with the community more effectively as councilmembers. He would also like an item on ideas of committees as part of community engagement and discussion on how to use volunteers in the community. He would also like an item on climate resiliency districts. Lastly, he would like an item on the traffic safety near Daves Elementary School.

ADJOURN
Mayor Allan adjourned the meeting at approximately 9:21 p.m.

Loin Allan, Mayor

ATTEST:
____________________________________
Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: CONSENT CALENDAR
Staff Contact: Diana Perkins, City Manager
Department: City Manager
Title: Approve Warrant List Dated June 16, 2026 in the Amount of $129,925.37 and Authorize the City Manager to Issue Certain Payments in July 2026 Recommendation(s):

Staff recommends the City Council approve the Warrant List and authorize the City Manager to issue certain payments in July 2026.

Analysis:

The Warrant List includes payments to be made to vendors for goods and services procured by the City. The attached report lists each payment to be made by vendor, amount, and by accounting fund. Also, attached to the Warrant List is a listing the automatic payments made through electronic bank transfers as well as a detailed break down of the charges to the City’s credit card.

Community Based Grants
At the March 17, 2026 City Council meeting, the Council approved the following Community Based Grants to be awarded in Fiscal Year 2026-2027:

Organization Purpose Amount
Art Docents of Los Gatos Provide art education to the
students of the Los Gatos Union
School District $2,000
West Valley Community
Services
Van to provide mobile services to
unhoused people in the West
Valley $5,000
Sustainable Waze Los Gatos Music in the Park $2,000
Los Gatos Youth Park Improve the building/facilities $1,500 Los Gatos Community
Concert Association
Upcoming concert season
$1,500
KCAT-TV Oktoberfest Community Event $5,000
Total Grant Funding
Awarded
$17,000

As the City Council will not meet again until August 4, 2026, staff recommends that the Council authorize the City Manager to issue these payments in July 2026.

Other Payments Due in July 2025
The City Council traditionally takes a summer recess in July and no Council meetings are scheduled. The next City Council meeting is scheduled for August 4, 2026, which will be seven weeks from the current meeting. This will cause the City to make payments for invoices/bills late as most invoices/bills received are due within 30 days of receipt.

Staff recommends that the City Council authorize the City Manager to process payment for invoices/bills that are due before the next Council meeting on August 4, 2026. A listing of such payments will be provided to the City Council at the August 4, 2026 meeting.

California Environmental Quality Act:

The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.

Public Noticing:

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

Attachments:

Warrant List - 6-16-2026

6/9/2026 2:15:03 PM ***The payables contained in this report are in an open packet, and have not posted to the General Ledger*** Page 1 of 3 Warrant List 06/16/2026 - Invoices
City of Monte Sereno, CA By Vendor Name
APPKT00100
Vendor Name Description (Payable) Post Date Account Name Account Number Amount Vendor: AIM Engineering Consultants Inc
Consulting Support - January 04/30/2026 Professional Services 13,900.00 thru April 2026
AIM Engineering Consultants
Inc
100-600-6200
Vendor AIM Engineering Consultants Inc Total: 13,900.00 Vendor: Alana Consulting, LLC
Building Consultant 04/01/26- 06/07/2026 Professional Services 49,825.10 06/02/26
Alana Consulting, LLC 100-500-6200
Vendor Alana Consulting, LLC Total: 49,825.10
Vendor: Casey Construction
Casey Construction Construction Services 03/13/2026 Storm Drain Maintenance 220-600-6537 9,650.00 Vendor Casey Construction Total: 9,650.00
Vendor: CliffordMoss
Parcel Tax - Strategic Services - 06/01/2026 Professional Services 5,200.00 May 2026
CliffordMoss 100-000-6200
Vendor CliffordMoss Total: 5,200.00
Vendor: Crystal Springs Water
City Hall Bottled Water - May 05/31/2026 Refreshments 29.64 2026
Crystal Springs Water 100-800-6040
Vendor Crystal Springs Water Total: 29.64
Vendor: Detail Striping, Inc.

Curb Striping and Signage at 06/04/2026 Traffic Safety 2,960.00 Viewfield EVA
Detail Striping, Inc. 205-710-6515
Vendor Detail Striping, Inc. Total: 2,960.00
Vendor: Dicar Networks, Inc.

Monthly IT Services and 06/01/2026 IT Managed Services 2,150.00 Software
Dicar Networks, Inc. 100-230-6300
Monthly IT Services and 06/01/2026 IT Managed Services 1,050.00 Software
Dicar Networks, Inc. 100-230-6300
Monthly IT Services and 06/01/2026 Network Cybersecurity 140.00 Software
Dicar Networks, Inc. 100-230-6310
Monthly IT Services and 06/01/2026 Network Cybersecurity 641.00 Software
Dicar Networks, Inc. 100-230-6310
SBITA – Variable Payments 210.00
Expense
Monthly IT Services and 06/01/2026
Software
Dicar Networks, Inc. 100-230-6370
SBITA – Variable Payments 50.00
Expense
Monthly IT Services and 06/01/2026
Software
Dicar Networks, Inc. 100-230-6370
Vendor Dicar Networks, Inc. Total: 4,241.00
Vendor: DocuSign Inc
Docusign Subscription 05/27/2026 Computer Software 3,369.60 5/22/26-5/21/27
DocuSign Inc 100-000-6315
Vendor DocuSign Inc Total: 3,369.60
Vendor: Donald C. Wimberly
Engineering Consultant 05/10/2026 Supplemental Services 3,850.00 03/30/26-05/10/26
Donald C. Wimberly 100-600-6270
Engineering Consultant 05/31/2026 Supplemental Services 1,900.00 05/11/26-05/31/26
Donald C. Wimberly 100-600-6270
Vendor Donald C. Wimberly Total: 5,750.00
Vendor: Heidi's Commercial Cleaning
Weekly Cleaning Service & 06/01/2026 Cleaning Services 750.00 Supplies - June 2026
Heidi's Commercial Cleaning 100-800-6405
Vendor Heidi's Commercial Cleaning Total: 750.00

Warrant List 06/16/2026 - Invoices Packet: APPKT00100
6/9/2026 2:15:03 PM ***The payables contained in this report are in an open packet, and have not posted to the General Ledger*** Page 2 of 3 Vendor Name Description (Payable) Post Date Account Name Account Number Amount Vendor: Logan & Powell, LLP
City Attorney Services - May 06/02/2026 Legal - Special Projects 324.50 2026
Logan & Powell, LLP 100-210-6215
Vendor Logan & Powell, LLP Total: 324.50
Vendor: Regenerative Landscaping LLC
Monthly Landscape Service - 05/01/2026 Landscaping Services 255.00 May 2026
Regenerative Landscaping LLC 100-800-6410
Vendor Regenerative Landscaping LLC Total: 255.00
Vendor: State Compensation Ins Fund
State Compensation Ins Fund Workers Comp - May 2026 05/21/2026 Workers Comp Insurance 100-000-5410 2,395.50 Vendor State Compensation Ins Fund Total: 2,395.50
Vendor: Town of Los Gatos Finance Department
Town of Los Gatos Finance FY26 COPS Funds True-Up 06/01/2026 COPS Grant - Disburse 28,150.03 Department
200-700-6775
Vendor Town of Los Gatos Finance Department Total: 28,150.03 Vendor: Tyler Technologies
SBITA – Preliminary/Ongoing 2,030.00
Implementation Costs
Project Manager Content 03/31/2026
Management
Tyler Technologies 100-230-6375
SBITA – Preliminary/Ongoing 435.00
Implementation Costs
Human Resource Management 05/14/2026
- May 2026
Tyler Technologies 100-230-6375
SBITA – Preliminary/Ongoing 290.00
Implementation Costs
Data and Insights Module - 05/20/2026
May 2026
Tyler Technologies 100-230-6375
Vendor Tyler Technologies Total: 2,755.00
Vendor: United States Postal Service
United States Postal Service USPS Marketing Mail 05/20/2026 Postage, Delivery and Shipping 100-800-6020 370.00 Vendor United States Postal Service Total: 370.00
Grand Total: 129,925.37

Warrant List 06/16/2026 - Invoices Packet: APPKT00100
6/9/2026 2:15:03 PM ***The payables contained in this report are in an open packet, and have not posted to the General Ledger*** Page 3 of 3 Report Summary
Fund Summary
Fund Expense Amount
100 - General Fund 89,165.34
200 - Law Enforcement Fund 28,150.03
205 - Public Safety 2,960.00
220 - Storm Drainage Fund 9,650.00
Grand Total: 129,925.37
Account Summary
Account Number Account Name Expense Amount
100-000-5410 Workers Comp Insurance 2,395.50
100-000-6200 Professional Services 5,200.00
100-000-6315 Computer Software 3,369.60
100-210-6215 Legal - Special Projects 324.50
100-230-6300 IT Managed Services 3,200.00
100-230-6310 Network Cybersecurity 781.00
100-230-6370 SBITA – Variable Paymen… 260.00
100-230-6375 SBITA – Preliminary/Ong… 2,755.00
100-500-6200 Professional Services 49,825.10
100-600-6200 Professional Services 13,900.00
100-600-6270 Supplemental Services 5,750.00
100-800-6020 Postage, Delivery and Sh… 370.00
100-800-6040 Refreshments 29.64
100-800-6405 Cleaning Services 750.00
100-800-6410 Landscaping Services 255.00
200-700-6775 COPS Grant - Disburse 28,150.03
205-710-6515 Traffic Safety 2,960.00
220-600-6537 Storm Drain Maintenance 9,650.00
Grand Total: 129,925.37
Project Account Summary
Project Account Key Expense Amount
**None** 129,925.37
Grand Total: 129,925.37

6/4/2026 1:31:11 PM ***The payables contained in this report are in an open packet, and have not posted to the General Ledger*** Page 1 of 2 Warrant List 06/16/2026 - Automatic Payments Processed
City of Monte Sereno, CA By Vendor Name
APPKT00099
Vendor Name Description (Payable) Post Date Account Name Account Number Amount Vendor: Delta Dental of California
Employee Dental Insurance - 04/01/2026 Dental Insurance Premium 363.03 April 2026
Delta Dental of California 100-000-6045
Employee Dental Insurance - 05/01/2026 Dental Insurance Premium 363.03 May 2026
Delta Dental of California 100-000-6045
Employee Dental Insurance - 06/01/2026 Dental Insurance Premium 363.03 June 2026
Delta Dental of California 100-000-6045
Vendor Delta Dental of California Total: 1,089.09
Vendor: Pacific Gas & Electric
City Hall Electricity 04/09/26- 05/14/2026 Utilities, Electricity 541.71 05/07/26
Pacific Gas & Electric 100-800-6370
City Hall Electricity 04/09/26- 05/14/2026 Utilities, Electricity 21.52 05/07/26
Pacific Gas & Electric 100-800-6370
Loma Serena Lighting Dist 05/20/2026 Utilities, Electricity 192.53 04/16/26-05/14/26
Pacific Gas & Electric 230-710-6370
City Hall Electricity 04/16/26- 05/20/2026 Utilities, Electricity 209.15 05/14/26
Pacific Gas & Electric 100-710-6370
Rose Andrews Lighting Dist 05/20/2026 Utilities, Electricity 50.64 04/16/26-05/14/26
Pacific Gas & Electric 205-710-6370
Vendor Pacific Gas & Electric Total: 1,015.55
Grand Total: 2,104.64

Warrant List 06/16/2026 - Automatic Payments Processed Packet: APPKT00099 6/4/2026 1:31:11 PM ***The payables contained in this report are in an open packet, and have not posted to the General Ledger*** Page 2 of 2 Report Summary
Fund Summary
Fund Expense Amount
100 - General Fund 1,861.47
205 - Public Safety 50.64
230 - Loma Serena Street Lighting Fund 192.53
Grand Total: 2,104.64
Account Summary
Account Number Account Name Expense Amount
100-000-6045 Dental Insurance Premi… 1,089.09
100-710-6370 Utilities, Electricity 209.15
100-800-6370 Utilities, Electricity 563.23
205-710-6370 Utilities, Electricity 50.64
230-710-6370 Utilities, Electricity 192.53
Grand Total: 2,104.64
Project Account Summary
Project Account Key Expense Amount
**None** 2,104.64
Grand Total: 2,104.64

6/4/2026 1:24:28 PM ***The payables contained in this report are in an open packet, and have not posted to the General Ledger*** Page 1 of 2 Warrant List 05/25/2026 - Credit Card Charges
City of Monte Sereno, CA By Vendor Name
APPKT00096
Vendor Name Description (Payable) Post Date Account Name Account Number Amount Vendor: Amazon
Amazon Office Supplies 04/27/2026 Office Supplies 100-800-6345 49.34 Youth Commission Ice Cream 04/28/2026 Youth Commission 50.45 Social
Amazon 100-130-6715
Amazon Office Supplies 05/06/2026 Office Supplies 100-800-6345 57.04 Vendor Amazon Total: 156.83
Vendor: Brooks San Jose
City Hall Maintenance and 69.00
Repairs
Brooks San Jose Pest Control 05/01/2026 100-800-6123
Vendor Brooks San Jose Total: 69.00
Vendor: California Municipal
CMCA Member Dues - July thru 05/04/2026 Memberships and Associations 300.00 June
California Municipal 100-300-6130
Vendor California Municipal Total: 300.00
Vendor: Constant Contact
Constant Contact Service 04/29/2026 Communications 99.00 03/29/26-04/29/26
Constant Contact 100-000-6181
Vendor Constant Contact Total: 99.00
Vendor: Costco
Youth Commission Ice Cream 05/05/2026 Youth Commission 10.99 Social
Costco 100-130-6715
Vendor Costco Total: 10.99
Vendor: Digium Cloud Services
Digium Cloud Services Digium Cloud Monthly Services 05/17/2026 Utilities, Telecommunications 100-800-6373 287.90 Vendor Digium Cloud Services Total: 287.90
Vendor: Disney Hotel
Disney Hotel CMCA Hotel Stay 05/01/2026 Travel Expenses 100-300-6110 420.03 Vendor Disney Hotel Total: 420.03
Vendor: FedEx
FedEx Printing Services 05/15/2026 Printing and Copying Expenses 100-800-6350 287.55 Vendor FedEx Total: 287.55
Vendor: Liquid Web
Liquid Web Website Hosting 05/11/2026 Web Site Hosting 100-230-6322 356.24 Vendor Liquid Web Total: 356.24
Vendor: Safeway
Youth Commission Ice Cream 05/05/2026 Youth Commission 37.68 Social
Safeway 100-130-6715
Youth Commission Ice Cream 05/05/2026 Youth Commission 40.44 Social
Safeway 100-130-6715
Vendor Safeway Total: 78.12
Vendor: United States Postal Service
United States Postal Service Postage 05/11/2026 Postage, Delivery and Shipping 100-800-6347 185.75 United States Postal Service Stamped Envelopes 05/14/2026 Postage, Delivery and Shipping 100-000-6347 1,431.55 Vendor United States Postal Service Total: 1,617.30
Vendor: Zoom Communications
Zoom Subscription 4/27/26- 04/27/2026 Communications 98.97 5/26/26
Zoom Communications 100-000-6181
Vendor Zoom Communications Total: 98.97
Grand Total: 3,781.93

Warrant List 05/25/2026 - Credit Card Charges Packet: APPKT00096 6/4/2026 1:24:28 PM ***The payables contained in this report are in an open packet, and have not posted to the General Ledger*** Page 2 of 2 Report Summary
Fund Summary
Fund Expense Amount
100 - General Fund 3,781.93
Grand Total: 3,781.93
Account Summary
Account Number Account Name Expense Amount
100-000-6181 Communications 197.97
100-000-6347 Postage, Delivery and Sh… 1,431.55
100-130-6715 Youth Commission 139.56
100-230-6322 Web Site Hosting 356.24
100-300-6110 Travel Expenses 420.03
100-300-6130 Memberships and Assoc… 300.00
100-800-6123 City Hall Maintenance a… 69.00
100-800-6345 Office Supplies 106.38
100-800-6347 Postage, Delivery and Sh… 185.75
100-800-6350 Printing and Copying Ex… 287.55
100-800-6373 Utilities, Telecommunica… 287.90
Grand Total: 3,781.93
Project Account Summary
Project Account Key Expense Amount
**None** 3,781.93
Grand Total: 3,781.93

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Adoption of a Resolution Establishing and Fixing the Amount of Special Real Property Tax Levy for Police Protection Purposes for the Fiscal Year 2026-2027
Recommendation(s):

Staff recommends that the Council adopt the resolution establishing and fixing the amount of special real property tax levy for police protection purposes for Fiscal Year 2026-2027.

Background Information:

On the November 8, 1983 election, Monte Sereno voters approved, by more than two-thirds of votes cast, a ballot measure which levied a parcel tax for police services. The same year, the City Council adopted Ordinance No. NS-22 to authorize the Santa Clara County Tax Collector to collect the $150 per parcel tax. Santa Clara County requires an annual resolution requesting the County to collect the parcel tax. Approval of the proposed resolution would authorize the collection of the parcel tax for Fiscal Year 2026-2027 in an amount of $150 per parcel. The City anticipates about $191,400 in revenue from the parcel tax in Fiscal Year 2026-2027. This revenue supports the cost of police services, which is expected to be about $1.53 million in the upcoming fiscal year.

California Environmental Quality Act:

The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.

Fiscal Impact:

No fiscal impact will result from the adoption of this resolution as the parcel tax revenue of $191,400 has been included in the proposed Fiscal Year 2026-27 budget.

Public Noticing:

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

Attachments:

NS-22 Establishing Police Tax
Draft Resolution

ORDINANCE NO. NS- 22

AN ORDINANCE OF THE CITY OF MONTE SERENO LEVYING

AND IMPOSING A SPECIAL REAL PROPERTY TAX FOR POLICE

PROTECTION SERVICES
The City Council of the City of Monte Sereno DOES ORDAIN as follows:

SECTION 1. PURPOSE AND INTENT.

At present the City of Monte Sereno (herein referred to as the "CITY"), provides police protection services by contract with another public agency, namely, the County of Santa Clara and the Office of the Sheriff thereof. As a result of the passage of Proposition 13 in June, 1978, the CITY is unable to increase property tax revenues to meet the anticipated annual increases in the cost of obtaining police protection services, either at the present level of service or better by contract with the County of Santa Clara, or with another public agency, as the case may be.

It is the purpose and intent of this Ordinance to impose a special real property tax pursuant to the provisions of California Government Code Section 53978 on real property, other than property owned by governmental agencies, within the CITY for the purpose of augmenting funding of police protection services in order to continue or improve the present level of service, but only to the extent necessary to balance the budget of CITY without the use of any unappro

operating and maintaining police protection equipment or apparatus, for paying the salaries and benefits of police protection personnel, and for such other police protection expenses as are deemed necessary by the City Council of the CITY.

SECTION 2. DEFINITIONS.

The following definition shall apply throughout this Ordinance:
(a) "Parcel of property" shall mean any contiguous unit of improved or unimproved real property held in separate ownership, including, but not limited to any single family residence, or any other unit of real property subject to the California subdivided Lands Act (Bus. and Prof. Code 11000, et seq.).

SECTION 3. SPECIAL TAX LEVY.

There is hereby levied and assessed a special real property tax by the City of Monte Sereno on each parcel of property in the City of Monte Sereno in the sum of One Hundred Fifty Dollars ($150.00) per year for each parcel of property commencing with the fiscal year 1984-85.

The tax imposed by this Section shall be a tax upon each parcel of property, and the tax shall not be measured by the value of the property.

SECTION 4. ALTERATION OF TAX BY CITY COUNCIL.

The City Council, by three (3) affirmative votes, is empowered

accordance with the purposes set ?Xth’h1thisOrdinance, or that such part of said tax is not necessary in order to balance the budget of CITY without the use of any unappropriated reserve funds of the CITY.

Having suspended all or any part of the tax imposed by this Ordinance, the City Council, by three (3) affirmative votes, is empowered to increase the amount of the tax up to the amount stated in Section 3 of this Ordinance. Under no circumstances may the amount of the tax exceed that set forth in Section 3.

SECTION 5. DISBURSEMENT OF TAX.

The revenue raised by the real property tax levied by this Ordinance shall be placed in a special fund to be used only for the purposes of obtaining, furnishing, operating and maintaining police protection equipmentor apparatus, for paying the salaries and benefits of police protection personnel, and for such other police protection expenses as are deemed necessary by the City Council of the CITY.

SECTION 6. COLLECTION AND ADMINISTRATION.
(a) Liens. The special real property tax imposed under this Ordinance together with all penalties and interest thereon shall constitute a lien on the parcel of property upon which it is levied, in accordance with Revenue and Taxation Code Section 2187 and shall have the same effect as an ad valorem real property tax lien until

and along with, and shall be subject to the same interest and penalties, as general ad valorem property taxes collected by the County of Santa Clara on behalf of the CITY. The taxes on each parcel of property shall be billed on the secured roll tax bills and shall be collected in the same manner as ad valorem property taxes collected by the County of Santa Clara on behalf of the CITY on the secured roll. Failure to pay when due will result in the imposition of penalties and interest in the same manner as if the taxes were ad valorem property taxes. (c) Recovery of County Costs. The County of Santa Clara shall be entitled to deduct the reasonable costs of collection and administration of this Ordinance before remitting the tax revenues collected to the CITY.
(d) Administrative Regulations. The City Council of the CITY by three (3) affirmative votes may from time to time adopt regulations necessary for the enforcement and administration of the special tax provided for herein, and to implement and make effective this Ordinance.

Such regulations shall be consistent with the purpose and intent of this Ordinance.

SECTION 7. APPEALS.

Any person aggrieved by the real property tax imposed pursuant to this Ordinance may, within the time fixed by the City Council, appeal the determination of the officers of the County of Santa Clara

SECTION 8. EXEMPTIONS.

The special real property tax imposed by this Ordinance shall not apply to any parcel of property that is exempt from the real property tax imposed by this Ordinance pursuant to any provision of the Constitution or any paramount law.

SECTION 9. OPERATIVE DATE.

This Ordinance shall become operative only if this Ordinance is adopted by a vote of sufficient number of qualified electors as is required by paramount law to impose the real property tax described in this Ordinance.

SECTION 10. The qualified electors of the City of Monte Sereno intend by this Ordinance to satisfy the requirements of Section 4 of Article XIII of the Constitution of the State of California, and without limitation by Section 4 of Article XIII B thereof.

SECTION 11. SEVERABILITY CLAUSE.

If any section, subsection, sentence, phrase, portion or part of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The People hereby declare that they would have adopted this Ordinance and each section, subsection, sentence, clause, phrase, part or portion thereof, irrespective of the fact that any one or more sections, subsections, clauses, phrases, parts or portions be declared invalid or unconstitu

Sereno in three

INTRODUCED
19th
ADOPTED at a regular meeting of the City Council held this day of JULY
I
AYES: Councilmember:

NOES: Councilmember:

ABSENT: Councilmember:

ATTEST:

CITY CLERK
day of July
, 1983,
(3) public places.
at a regular meeting of the City Council held this
and thereafter PASSED AND
25th
1983, by the following roll call vote:

BAMFORD, CODY, WINCKLER, MAYOR FOLEY
NONE

BURGARD
__7. BY
.YOR
1: S15 A TRUEAND CORRECT .
-::r:»:‘/ or A czw o:.::‘)‘z-M cs‘; HO.(Z£“-2 7"
51'.’

STATE OF CALIFORNIA
COUNTY OF SANTA CLARA ss.

CITY OF MONTE SERENO
I, FAY FURTADO, City Clerk of the City of Monte Sereno, California, do hereby certify that the foregoing Ordinance No.

NS-Z2 was adopted by the City Council of the City of Monte Sereno at a regular meeting thereof, held on the 25th day of JULY C C 1983, and that the same was adopted by
9 the following vote:

AYES; Councilmen BAMFORD, copy, WINCKLER, MAYOR FOLEY
NOES: Councilmen NON
ABSENT: Councilmen BURGARD
ABSTAIN: Councilmen
WITNESS my hand and the official seal of said City this 18th day of
‘November
‘ ‘ , 1983.

STATE OF CALIFORNIA
COUNTY OF SANTA CLARA ss.

CITY OF MONTE SERENO
I, FAY FURTADO, City Clerk of the City of Monte Sereno, California, do hereby certify that the foregoing Ordinance No. NS-22 was adopted by the People of the City of Monte Sereno, California, by a two~thirds Vote of the qualified electors of the City at a Special Municipal Election held on November 8, 1983, the vote thereon by 583 Yes votes and _ 242 No votes.

WITNESS my hand and the official seal of said City this l8th
day of November , 1983.
5?

FAY FURTADO, CITY CLERK
(SEAL)

RESOLUTION NO. 26-XXXX

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO

ESTABLISHING AND FIXING THE AMOUNT OF SPECIAL REAL PROPERTY

TAX LEVY FOR POLICE PROTECTION PURPOSES IN MONTE SERENO FOR THE FISCAL YEAR COMMENCING ON JULY 1, 2026 AND ENDING ON JUNE 30, 2027
WHEREAS, the City of Monte Sereno adopted, and the voters approved by more than two-thirds of the votes cast at the November 8, 1983, election, Ordinance No. NS-22 which levied a parcel tax for police services in the amount of $150 per parcel as more specifically set out in Ordinance No. NS-22; and WHEREAS, Ordinance No. NS-22 authorized the County of Santa Clara Tax Collector to collect one hundred fifty dollars ($150.00) per parcel.

NOW, THEREFORE, BE IT RESOLVED that the Tax Collector for the County of Santa Clara be provided a certified copy of this Resolution and be instructed to collect one hundred fifty dollars ($150.00) per parcel, as provided in Ordinance No. NS-22, in the City of Monte Sereno for the fiscal year commencing July 1, 2026 and ending June 30, 2027.

This Resolution was PASSED and ADOPTED on the 16th day of June, 2026 at a duly held meeting of the City Council of the City of Monte Sereno, California, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_________________________
Lionel M. Allan, Mayor
ATTEST:
_________________________________
Gloisy Gonzalez-Gonzalez, City Clerk

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: CONSENT CALENDAR
Staff Contact: Gloisy Gonzalez-Langarica, City Clerk
Department: City Clerk
Title: Adoption of a Resolution Calling A Municipal Election To Be Held On Tuesday, November 3, 2026, And Requesting Consolidation And Performance Of Services From The County Of Santa Clara Registrar Of Voters
Recommendation(s):

Staff recommends that the City Council adopt a resolution ordering and calling a General Municipal Election to be held in the City of Monte Sereno on November 3, 2026 and requesting the consolidation and performance of services from the County of Santa Clara Registrar of Voters.

Background Information:

In order for the City to consolidate with the Santa Clara County Registrar of Voters Office and request election services, the Monte Sereno City Council must adopt a resolution requesting such services and specifying the manner in which those election services shall be administered. The attached resolution provides this direction for the General Municipal portion of the election only.

Most election matters are regulated by the California Elections Code. However one of the items which is left to the discretion of the City Council is levying, waiving, or subsidizing the cost of the optional Candidate Statement. The Candidate Statement is an optional 200 word paragraph that a candidate may choose to have printed in the County's election guide. It is most commonly used to express the candidate's position on matters of the community interest and provide background information and qualifications of the candidate for the office which they seek. The estimated cost of the candidate statement for the November 3, 2026 election is $3,150.00. With the exception of one election, the City Council historically has chosen to charge the full cost of candidate statements to the candidates seeking office. Staff recommends that the cost of the optional candidate statement be charged in full to the candidate.

Fiscal Impact:

Should the City Council decide to either bear the full cost of the Candidate Statement of subsidize a portion of the cost, the fiscal impact would be equal to the subsidy amount or the number of candidates multiplied by up to $3,150.00 which is the estimate provided by the

Registrar of Voters as of this report's publication. It is important to note that the Registrar of Voters is currently reevaluating its fee schedule and the final election cost estimate may not be available until the fall. As of this report's publication, the November 3, 2026 estimated election costs based on three (3) City Council seats are:
2026 General Election Estimated Cost of Election
Estimated Cost per
Candidate Statement (not
included in election costs)
1st Item - City Council Seats $13,487 $3,150
Total Estimated Costs
(does not include Estimated
Cost per Candidate)
$13,487
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. 26-XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO CALLING A MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026, AND

REQUESTING CONSOLIDATION AND PERFORMANCE OF SERVICES FROM THE

COUNTY OF SANTA CLARA REGISTRAR OF VOTERS
WHEREAS, pursuant to Section 1001 of the Elections Code of the State of California, there is an established General Statewide election to be held on Tuesday, November 3, 2026; and, WHEREAS, pursuant to Part 3, Consolidation of Elections, and commencing with Section 10400 of the Elections Code of the State of California, such municipal election may be either completely or partially consolidated and held on the same day as a statewide election, upon order of this City Council.

NOW, THEREFORE, BE IT RESOLVED:

Section 1. That pursuant to Section 10403 of the Elections Code of the State of California, the City Council of the City of Monte Sereno calls a municipal election to be held on Tuesday, November 3, 2026; and requests the Board of Supervisors of the County of Santa Clara to completely consolidate the election with the General Statewide election. The consolidated municipal election will be held, regulated, and conducted in accordance with the provisions of the law.

Section 2. Pursuant to the laws of the State of California governing general law cities, a municipal election is necessary for purposes of filling a Councilmember seat for the offices listed below and to be voted upon at such election.

Title of Each Office Length of Term Number of Seats At-Large or District Number
Councilmember 4 1 At-Large
Councilmember 4 1 At-Large
Councilmember 4 1 At-Large
Section 3. That pursuant to Section 10002 of the Elections Code of the State of California, the City of Monte Sereno requests the services of the Board of Supervisors of the County of Santa Clara and the Registrar of Voters of the County of Santa Clara to render such services to the City as requested by the City Clerk, and shall reimburse the County for the costs incurred by the County of Santa Clara Registrar of Voters in conducting the General Statewide election for the City. The City requests the County of Santa Clara Board of Supervisors permit the County of Santa Clara Registrar of Voters to prepare the City’s election materials. The election services to be performed shall include the preparation, printing and mailing of official ballots and county voter information guides; the establishment of precincts, election ballots, return mail envelopes, ballot drop boxes, vote centers, election officers, and producing such publications as are required by law in connection therewith; the furnishing of ballots, envelopes, and other necessary supplies and materials for voting places; the canvassing of the returns of the election; the furnishing of the

results of such canvassing to the City Clerk; and, the performance of other election services as may be requested by the City Clerk.

Section 4. That the City Council of the City of Monte Sereno requests the Board of Supervisors of the County of Santa Clara hold and conduct the municipal election in the manner prescribed in Section 10418 of the Elections Code of the State of California, and to further provide that the Registrar of Voters canvass the returns of the municipal election. The County of Santa Clara is hereby authorized to certify the returns of the municipal election.

Section 5. That pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted upon in the City of Monte Sereno on November 3, 2026, may prepare a candidate’s statement on an appropriate form provided by the City Clerk, as the City’s election official, or his/her/their designee. The statement may include the name, age and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications expressed by the candidate. The candidate shall be required to pay for the cost of printing, translating, and distributing said candidate’s statement. Each candidate who files such a statement shall be required to pay in advance his or her pro rata share of the estimated costs of printing, handling, and mailing said candidate statement, and such estimated costs shall be determined by the Registrar of Voters.

Section 6. That pursuant to Section 15651 of the Elections Code of the State of California, the method of determining the winner or winners in the event of a tie vote (two or more persons receive an equal and the highest number of votes for an office) as certified by the County of Santa Clara Registrar of Voter, the City Council of the City of Monte Sereno, in accordance with Section 15651(a), any tie vote shall be resolved by lot.

Section 7. In all particulars not recited in this resolution, the municipal election shall be held and conducted as provided by law for holding municipal elections.

PASSED AND ADOPTED by the City Council of the City of Monte Sereno, State of California, this 16th day of June, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Lionel M. Allan, Mayor
City Council of the Monte Sereno
ATTEST:
__________________________________
Gloisy Gonzalez-Langarica
City Clerk of the Monte Sereno

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: CONSENT CALENDAR
Staff Contact: Diana Perkins, City Manager
Department: City Manager
Title: Adoption of a Resolution to Update the Fee Schedule for User and Regulatory Fees to Increase fees by 3% for an Annual Inflationary Increase
Recommendation(s):

Staff recommends that the City Council adopt the draft resolution to update the fee schedule for user and regulatory fees increase fees by 3% for an inflationary increase.

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 approved the last inflationary fee increase on June 3, 2025 with Resolution 25-3932.

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 budgeted seven full-time and two part-time staff positions, of which five 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 3.0% in 2025. 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 3.0% increase in CPI for 2025.

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.

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 2026/2027 budget will include an increase of approximately 4% or $25,000 in staffing costs related to permitting activities due to the 4% cost of living increase allocated by the MOU with the Association of City Employees (ACE).

Using the current year’s fiscal year permitting activity, the proposed inflationary fee adjustment would result in approximately $22,000. Additionally, the 2018 Fee Study may be underinclusive 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.

California Environmental Quality Act:

This is not a “project” under the California Environmental Quality Act (“CEQA”) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment (CEQA Guidelines section 15378(b)(5)).

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 $22,000 of additional revenue annually. This projected fee increase is included in the recommended budget which will be provided to Council for consideration at the June 16, 2026 City Council meeting.

If approved, the updated fee schedule will be effective 60 days after this hearing as required by the California Government Code section 66017(a), which will be August 17, 2026.

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 June 5, 2026, 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

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 63 of 239
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 64 of 239
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 65 of 239
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 66 of 239
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 67 of 239
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 68 of 239
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 69 of 239
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 70 of 239
Appendix B Illustration of Current Fees, Maximum Fees, and Proposed Fees

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

City of Monte Sereno WORKING DRAFT MASTER FEE SCHEDULE - PLANNING FEES Current Fee Note Maximum Fee (2018 Fee Study) Proposed Fee Activity Description $2,800 $3,104 $2,450 c) Special Land Use Permit (Historic Resource) 15 Satellite Dish $250 $485 $55 a) Administrative Review $500 $970 $55 b) Public Hearing $2,800 $3,104 $2,450 16 Variance $360 $1,940 $360 17 Appeal $194 $194 18 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $194 $194 [b] 19 Excess Plan Review Fee (per hour - 1 hour minimum) $194 $194 [b] 20 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) 1x Base Permit Fee [c] 21 Work Commenced without a Permit 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 Current Fee Note Maximum Fee (2018 Fee Study) Proposed Fee $1,050 $2,120 $360 1 Certificate of Compliance $350 $398 $175 2 Encroachment Permit (Administrative) 3 Construction Encroachment Permit Fee 5% of value a) First $50,000 of value, or any fraction thereof 5% of value 2% - 3% of value b) Value Exceeding $50,000 3% of value * 4 Storm Drain Fees $2,450 $2,450 * a) Per Lot Zoned: R-1-44 $1,640 $1,640 * b) Per Lot Zoned: R-1-20 $810 $810 * c) Per Lot Zoned: R-1-8 5 Final Map $3,180 n/a a) Parcel Map $3,000 $9,540 n/a b) Tract Map $9,000 Bill hourly/T&M varies Actual + admin 6 Grading Plan Check Fees 7 Grading Permit Fees $265 $530 $105 a) Less than 50 cubic yards $530 $1,060 $160 b) 51 to 100 cubic yards c) 101 to 1,000 cubic yards $530 $1,060 $160 i) For first 100 cubic yards or fraction thereof $29 $59 $30 ii) For each add'l 100 cubic yards or fraction thereof up to 1,000 cubic yards d) 1,001 to 10,000 cubic yards $795 $1,590 $460 i) For first 1,000 cubic yards or fraction thereof $59 $118 $30 ii) For each add'l 1,000 cubic yards or fraction thereof up to 10,000 cubic yards e) 10,001 to 100,000 cubic yards $0 $1,988 $2,650 $760 i) For first 10,000 cubic yards or fraction thereof $31 $41 $30 ii) For each add'l 1,000 cubic yards or fraction thereof up to 100,000 cubic yards f) 100,001 cubic yards or more $6,360 $6,360 $3,460 i) For first 100,000 cubic yards or fraction thereof $31 $31 $30 ii) For each add'l 1,000 cubic yards or fraction thereof 8 NPDES Compliance a) Plan Check i) Less than 1 Acre $350 $398 ii) Greater than or Equal to 1 Acre $1,050 $2,120 Activity Description App B - 4

City of Monte Sereno WORKING DRAFT MASTER FEE SCHEDULE - PUBLIC WORKS FEES Current Fee Note Maximum Fee (2018 Fee Study) Proposed Fee Activity Description b) Site Inspection i) Less than 1 Acre $530 $1,060 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 $265 $265 varies 10 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $265 $265 n/a 11 Excess Plan Review Fee (per hour - 1 hour minimum) $265 $265 n/a 12 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) 1x Base Permit Fee n/a [a] 13 Work Commenced without a Permit 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 Current Fee Note Maximum Fee (2018 Fee Study) Proposed Fee $0.51 n/a $0.51 * 1 Construction Tax 2 Electrical, Plumbing or Mechanical Permits: $0.11 $0.11 $0.06 a) Fee per Square Foot $159 $160 $62 b) Minimum fee $159 $320 $0 3 Solar $159 $160 $62 4 Demolition Permit [a] 5 Building Permit: $23.50 $23.50 $23.50 a) Valuation: $1 to $500 b) Valuation: $501 to $2,000 $23.50 $23.50 $23.50 i) Fee for first $500 $3.05 $3.05 $3.05 ii) Fee for each additional $100, or fraction thereof, to and including $2,000 c) Valuation: $2,001 to $25,000 $69.25 $69.25 $69.25 i) Fee for first $2,000 $14.00 $14.00 $14.00 ii) Fee for each additional $1,000, or fraction thereof, to and including $25,000 d) Valuation: $25,001 to $50,000 $391.25 $391.25 $391.25 i) Fee for first $25,000 $10.10 $10.10 $10.10 ii) Fee for each additional $1,000, or fraction thereof, to and including $50,000 e) Valuation $50,001 to $100,000 $643.75 $643.75 $643.75 i) Fee for first $50,000 $7.00 $7.00 $7.00 ii) Fee for each additional $1,000, or fraction thereof, to and including $100,000 f) Valuation $100,001 to $500,000 $993.75 $993.75 $993.75 i) Fee for first $100,000 $5.60 $5.60 $5.60 ii) Fee for each additional $1,000, or fraction thereof, to and including $500,000 g) Valuation: $501,000 to $1,000,000 $3,233.75 $3,233.75 $3,233.75 i) Fee for first $500,000 $4.75 $4.75 $4.75 ii) Fee for each additional $1,000, or fraction thereof, to and including $1,000,000 h) Valuation: $1,000,001 and up $5,608.75 $5,608.75 $5,608.75 i) Fee for first $1,000,000 $3.15 $3.15 $3.15 ii) Fee for each additional $1,000, or fraction thereof 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 Current Fee Note 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% $5 $5 $5 7 Micro-filming / Imaging Fee (per page, in addition to building permit fees) 8 Strong Motion Fees: $0.00013 n/a $0.00013 a) Residential (per $1 of valuation) $0.00028 n/a $0.00028 b) Commercial (per $1 of valuation) $1 n/a $1 9 SB 1473 (per $25,000 of valuation) $0.49 n/a $0.49 * 10 Road Impact Fee (per $100 of valuation of permitted work) 11 Other Fees $106 $107 n/a a) Excess Inspection/Excess Re-inspection/Missed Inspection Fee (per inspection) 1x Base Fees n/a [b] b) Work Commenced without a Permit $213 $213 n/a c) Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1/2 hour min.) Actual Costs / T&M Actual Costs / T&M Actual Costs [c] d) Fee for Additional Services Required Due to Changes, Modifications, Additions, etc. 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 SCHEDULE Reason for Addition Proposed Fee $150 1 Planning Review of Building Permit 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. $159 2 Solar Permits 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 Existing fee schedule does not include a final map review fee $3,000 a) Parcel Map Existing fee schedule does not include a final map review fee $9,000 b) Tract Map $0.0018 4 Community Planning Fee (per $1 of valuation) 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 See Santa Clara County Fire. Fire Protection Fees 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

Page Services / Activities / Subject Matter App E: 3 - 7 Planning Fees App E: 8 - 12 Public Works Fees App E: 13 - 17 Building Fees App E: 18 Community Planning Fee 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 Note City Planner Position Assumptions Regarding Labor Hours Annual Paid Hours Per FTE 1,820 [a] Est. Annual Leave Hours Per FTE 224 [b] 1,596 Est. Productive Hours Per FTE [c] Specific Employee Information Total FTE (or FTE Equivalent/Contractor) 1.00 Annual Salary 100,449 $ Annual Benefits 31,103 $ Contract Svcs - $ 131,552 Total Annual Labor Costs $ 55 Salary and Wage Rate Per Paid Hour $ 17 Benefit Rate Per Paid Hour $ - Contract Svcs Rate Per Paid Hour $ 72 Total Labor Hourly Rate Per Paid Hour $ Divisional Assignment Share Assigned to this Division 100% [d] 1.00 Est. FTE Assigned to this Division 100,449 Annual Salary Assigned to this Division $ 31,103 Annual Benefits Assigned to this Division $ - Annual Contract Svcs Assigned to this Division $ 131,552 Total Annual Labor Costs $ 1,820 Est. Annual Hours Assigned to this Division 224 Est. Annual Leave Assigned to this Division 1,596 Est. Productive Hours Assigned to this Division 82 Labor Rate Per Productive Hour $ App E - 3

City of Monte Sereno User and Regulatory Fee Study Allocation of Annual Labor Effort - Planning Note City Planner Position 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% 100% Total Allocation of Productive Hours (Hours) Indirect Activities and Services 192 General Admin; Mgmt; Policies; Procedures 32 Certification and Training Public Information and Assistance 335 [e] Total Indirect Activities and Svcs 559 Direct Activities and Services 16 Code Enforcement/Compliance (Punitive) 80 Long Range Planning 622 Current Planning [e] 239 Bldg Permit Plan Review Support to Other Departments 80 Total Direct Activities and Services 1,037 1,596 Total [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 Notes Total 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 Notes Allocation Costs Share of Svcs & Supplies and Citywide Overhead 69,723 53% [b] $ Total Allocable ExpendituresDescription Notes % of Total Amount 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 Labor [a] Svcs/Supplies & Total Citywide OH Targeted Recovery from Fees Amount Recoverable from Fees Targeted Notes Hourly Rate Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 15,786 12% 8,367 $ 24,153 $ 20,066 83% $ 23 $ $ Certification and Training 2,631 2% 1,394 $ 4,025 $ 3,344 83% $ 4 $ $ Public Information and Assistance 21% 27,626 $ 14,642 $ 42,268 $ 83% 35,115 $ 41 $ Total Indirect Activities and Svcs 46,043 35% 24,403 $ 70,446 $ 58,524 $ 68 $ $ Direct Activities and Services Code Enforcement/Compliance (Punitive) 1,316 1% 697 $ 2,013 $ - 0% $ - $ $ Long Range Planning 6,578 5% 3,486 $ 10,064 $ - 0% $ - $ $ Current Planning 51,305 39% 27,192 $ 78,497 $ 78,497 100% $ 91 $ $ Bldg Permit Plan Review 19,733 15% 10,458 $ 30,191 $ 30,191 100% $ 35 $ $ Support to Other City Departments 5% 6,578 $ 3,486 $ 10,064 $ 0% - $ - $ Total Direct Activities and Services 85,509 65% 45,320 $ 130,828 $ 108,688 83% $ 126 $ $ Total 131,552 100% 69,723 $ 201,275 $ 167,213 83% $ $ 194 < Hourly Rate $ 862 Direct Hours [a] Fee-Related Cost Recovery Analysis Direct Fee-Related Activity Hourly Rate Est. Annual Direct Hours Total Annual Fee Revenue Costs Aggregate Cost Recovery General Fund Notes Support Req'd Current Planning 194 622 $ 120,753 $ 65,282 $ 55,471 54% [c] $ Planning Review of Building Permits 194 239 $ 46,448 $ - $ 46,448 0% [c] $ Total 167,201 862 65,282 $ 101,919 39% $ $ [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 Current Fee Cost of Svc Hourly Rate Est. Labor Time Fee Description Current Est. Cost Recovery Targeted Cost Note Proposed Fee Recovery 291 = $194 x 1.5 1 Planning Review of Building Permit $150 52% 0% $0 $ $0.0018 50% 0% $0.0000 $0.0036 Separate wrksht 2 Community Planning Fee (per $1 of valuation) 970 = $194 x 5.0 3 Significant Tree Removal (referred to Site and Architecture Commission) $100 10% 10% $100 $ 4 Site Development/Planned Development Permit: 3,104 = $194 x 16.0 a) New Houses/Demo Rebuild/Remodel/Addition 50% or more of existing SF $2,800 90% 79% $2,450 $ 2,328 = $194 x 12.0 b) Remodel/Addition less than 50% of existing SF $1,900 82% 64% $1,500 $ 1,552 = $194 x 8.0 c) Accessory Building/Fence Height $500 32% 23% $360 $ 3,492 = $194 x 18.0 e) Hillside Development (avg. slope of 10% of greater) $3,100 89% 79% $2,750 $ 1,552 = $194 x 8.0 f) Site Development Permit Amendment $1,300 84% 81% $1,250 $ 3,104 = $194 x 16.0 5 Administrative Building Site Approval $2,800 90% 79% $2,450 $ 388 = $194 x 2.0 6 Address/Street Name Change $350 90% 64% $250 $ 7 Environmental Review 388 = $194 x 2.0 a) Exemption $350 90% varies varies $ b) Environmental Clearance 388 = $194 x 2.0 i) Reuse of Previous Environmental Clearance $350 90% varies varies $ 3,492 = $194 x 18.0 ii) Initial Study and Negative Declaration / Mitigated Negative Declaration $3,400 97% varies varies $ iii) Initial Study and Negative Declaration / Mitigated Negative Declaration (prepared by consultant) pass-through of 100% varies varies varies actual cost plus 10% administrative fee pass-through of 100% varies varies varies iv) EIR (prepared by consultant) actual cost plus 10% administrative fee 3,104 = $194 x 16.0 8 General Plan Amendment $2,800 90% 82% $2,530 $ 3,104 = $194 x 16.0 9 Zoning Map Amendment $2,800 90% 82% $2,530 $ 5,432 = $194 x 28.0 10 Planned Development Zoning Map Amendment $5,000 92% 47% $2,530 $ 3,880 = $194 x 20.0 11 Annexation (excluding LAFCO Fees) $3,800 98% 65% $2,530 $ 1,164 = $194 x 6.0 12 Reasonable Accommodation Application $360 31% 31% $360 $ 13 Subdivision: 1,552 = $194 x 8.0 a) Lot Line Adjustment $1,500 97% 97% $1,500 $ b) Tentative Map Application: 3,104 = $194 x 16.0 i) 4 Lots or Fewer: (Tentative Parcel Map) $3,000 97% varies $2,550 + $1,360/lot $ 10,088 = $194 x 52.0 ii) 5 Lots or More: (Tentative Subdivision Map) $10,000 99% varies $3,060 + $1,360/lot $ 14 Use Permits: 3,104 = $194 x 16.0 a) General $2,800 90% 79% $2,450 $ 1,552 = $194 x 8.0 b) Animals $500 32% 23% $360 $ 3,104 = $194 x 16.0 c) Special Land Use Permit (Historic Resource) $2,800 90% 79% $2,450 $ 15 Satellite Dish 485 = $194 x 2.5 a) Administrative Review $250 52% 11% $55 $ 970 = $194 x 5.0 b) Public Hearing $500 52% 6% $55 $ 3,104 = $194 x 16.0 16 Variance $2,800 90% 79% $2,450 $ 1,940 = $194 x 10.0 17 Appeal $360 19% 19% $360 $ 194 = $194 x 1.0 18 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $194 100% $ 194 = $194 x 1.0 19 Excess Plan Review Fee (per hour - 1 hour minimum) $194 100% $ 194 = $194 x 1.0 20 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) $194 100% $ 1x Base Permit Fee 21 Work Commenced without a Permit 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 Est Annual Hours Volume Revenue Analysis at Current Fees Revenue Analysis at Full Cost Recovery Revenue Analysis at Proposed Fees - 188 125 36,375 $ 18,750 $ $ 3,300 165 33 32,010 $ 3,300 $ $ 24,500 160 10 31,040 $ 28,000 $ $ 9,000 72 6 13,968 $ 11,400 $ $ 2,160 48 6 9,312 $ 3,000 $ $ 8,250 54 3 10,476 $ 9,300 $ $ 1,250 8 1 1,552 $ 1,300 $ $ - 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ 2,530 18 1 3,492 $ 3,400 $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ 2,530 16 1 3,104 $ 2,800 $ $ 2,530 16 1 3,104 $ 2,800 $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ 3,000 16 2 3,104 $ 3,000 $ $ 2,550 16 1 3,104 $ 3,000 $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ 2,450 16 1 3,104 $ 2,800 $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ 64,050 793 153,745 $ 92,850 $ $ Reasonable >>> Yes Yes Yes Yes Support Note >>> < 100% target see hrly rate see actual rev see hrly rate App E - 7

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

City of Monte Sereno User and Regulatory Fee Study Allocation of Annual Labor Effort - Public Works Engineering/Private Land Development/Encroachments Note Principal Engineer Position 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% 100% Total Allocation of Productive Hours (Hours) Indirect Activities and Services 192 General Admin; Mgmt; Policies; Procedures 32 Certification and Training Public Information and Assistance 96 [e] Total Indirect Activities and Svcs 319 Direct Activities and Services 638 Public Projects Private Land Development / Encroachments 638 Total Direct Activities and Services 1,277 1,596 Total [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 Notes Total 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 Notes Allocation Costs Share of Svcs & Supplies and Citywide Overhead 117,268 53% [b] $ Total Allocable ExpendituresDescription Notes % of Total Amount 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 Labor [a] Svcs/Supplies & Total Citywide OH Targeted Recovery from Fees Amount Recoverable from Fees Targeted Notes Hourly Rate Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 26,551 12% 14,072 $ 40,623 $ 20,312 50% $ 32 $ $ Certification and Training 4,425 2% 2,345 $ 6,771 $ 3,385 50% $ 5 $ $ Public Information and Assistance 6% 13,276 $ 7,036 $ 20,312 $ 50% 10,156 $ 16 $ Total Indirect Activities and Svcs 44,252 20% 23,454 $ 67,706 $ 33,853 $ 53 $ $ Direct Activities and Services Public Projects 88,504 40% 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 177,008 80% 93,814 $ 270,822 $ 135,411 50% $ 212 $ $ Total 221,260 100% 117,268 $ 338,528 $ 169,264 50% $ $ 265 < Hourly Rate $ 638 Direct Hours [a] Fee-Related Cost Recovery Analysis Direct Fee-Related Activity Hourly Rate Est. Annual Direct Hours Total Annual Fee Revenue Costs Aggregate Cost Recovery General Fund Notes Support Req'd Private Land Development/Encroachments 265 638 $ 169,176 $ 55,297 $ 113,879 33% [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 Current Fee Cost of Svc Hourly Rate Est. Labor Time Fee Description Current Est. Cost Recovery Targeted Cost Note Proposed Fee Recovery 2,120 = $265 8.0 1 Certificate of Compliance $1,050 50% 17% $360 $ 398 = $265 x 1.5 2 Encroachment Permit (Administrative) $350 88% 44% $175 $ 3 Construction Encroachment Permit Fee varies: a) First $50,000 of value, or any fraction thereof = varies: $265 x varies: 5% of value 5% of value varies: b) Value Exceeding $50,000 = varies: $265 x varies: 2% - 3% of value 3% of value [a] 4 Storm Drain Fees [a] $2,450 $2,450 a) Per Lot Zoned: R-1-44 [a] $1,640 $1,640 b) Per Lot Zoned: R-1-20 [a] $810 $810 c) Per Lot Zoned: R-1-8 5 Final Map 3,180 = $265 x 12.0 a) Parcel Map $3,000 94% n/a $ 9,540 = $265 x 36.0 b) Tract Map $9,000 94% n/a $ Bill hourly/T&M 100% varies Actual + admin varies = $265 x varies 6 Grading Plan Check Fees 7 Grading Permit Fees 530 = $265 x 2.0 a) Less than 50 cubic yards $265 50% 20% $105 $ 1,060 = $265 x 4.0 b) 51 to 100 cubic yards $530 50% 15% $160 $ c) 101 to 1,000 cubic yards 1,060 = $265 x 4.0 i) For first 100 cubic yards or fraction thereof $530 50% 15% $160 $ 59 = $265 x 0.22 ii) For each add'l 100 cubic yards or fraction $29 50% 51% $30 $ d) 1,001 to 10,000 cubic yards 1,590 = $265 x 6.0 i) For first 1,000 cubic yards or fraction thereof $795 50% 29% $460 $ 118 = $265 x 0.4 ii) For each add'l 1,000 cubic yards or fraction $59 50% 25% $30 $ e) 10,001 to 100,000 cubic yards 2,650 = $265 x 10.0 i) For first 10,000 cubic yards or fraction thereof $1,988 75% 29% $760 $ 41 = $265 x 0.16 ii) For each add'l 1,000 cubic yards or fraction $31 75% 73% $30 $ f) 100,001 cubic yards or more 6,360 = $265 x 24.0 i) For first 100,000 cubic yards or fraction thereof $6,360 100% 54% $3,460 $ 31 = $265 x 0.12 ii) For each add'l 1,000 cubic yards or fraction $31 100% 97% $30 $ 8 NPDES Compliance a) Plan Check 398 = $265 x 1.5 i) Less than 1 Acre varies $ $350 88% 58% 2,120 = $265 x 8.0 ii) Greater than or Equal to 1 Acre varies $ $1,050 50% 11% b) Site Inspection 1,060 = $265 x 4.0 i) Less than 1 Acre varies $ $530 50% 37% varies varies = $265 x varies ii) Greater than or Equal to 1 Acre Bill hourly/T&M with $1,000 initial deposit 100% varies 9 Oversize Load Permit [b] $16 a) One Day [b] $90 b) Annual 265 = $265 x 1.0 10 Hourly Rate for Services Not Listed in this Fee Schedule (per $265 100% varies $ 265 = $265 x 1.0 11 Excess Plan Review Fee (per hour - 1 hour minimum) $265 100% n/a $ 265 = $265 x 1.0 12 Excess Inspection/Re-inspection/Missed Inspection Fee (per $265 100% n/a $ 1x Base Permit Fee 100% n/a 13 Work Commenced without a Permit 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 Est Annual Hours Volume Revenue Analysis at Current Fees Revenue Analysis at Full Cost Recovery Revenue Analysis at Proposed Fees 720 16 2 4,240 $ 2,100 $ $ 4,550 39 26 10,335 $ 9,100 $ $ 6,000 72 24 19,080 $ 6,000 $ $ 3,000 16 2 4,240 $ 3,000 $ $ 6,360 16 2 4,240 $ $ - - $ $ 9,000 108 36 28,620 $ 28,620 $ $ - 0 0 - $ - $ $ 1,728 43 11 11,448 $ 5,724 $ $ 1,728 43 11 11,448 $ 5,724 $ $ 324 2 11 636 $ 318 $ $ 3,312 43 7 11,448 $ 5,724 $ $ 216 3 7 848 $ 424 $ $ 5,472 72 7 19,080 $ 14,310 $ $ 216 1 7 297 $ 223 $ $ - 0 0 - $ - $ $ - 0 0 - $ - $ $ 5,568 36 24 9,540 $ 8,400 $ $ 464 16 2 4,240 $ 2,100 $ $ 9,384 96 24 25,440 $ 12,720 $ $ 782 16 2 4,240 $ 4,240 $ $ 52,464 639 171,540 $ 112,967 $ $ Reasonable >>> Yes Yes Yes Yes Support Note >>> < 100% target see hrly rate see actual rev see hrly rate App E - 12

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

City of Monte Sereno User and Regulatory Fee Study Allocation of Annual Labor Effort - Building Note Total Contract PC Svcs Admin Clerk Building Official Position Allocation of Productive Hrs to this Division (%) Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 0% 0% 8% 6% Certification and Training 0% 0% 1% 1% Public Information and Assistance 22% 25% 0% 19% Total Indirect Activities and Svcs 26% 0% 25% 31% Direct Activities and Services Code Enforcement/Compliance (Punitive) 0% 0% 2% 2% Bldg Permit Processing/Plan Check/Review 67% 75% 100% 73% Total Direct Activities and Services 74% 100% 75% 69% 100% 100% 100% 100% Total Allocation of Productive Hours (Hours) Indirect Activities and Services 128 General Admin; Mgmt; Policies; Procedures - - 128 16 Certification and Training - - 16 Public Information and Assistance 351 132 - 483 Total Indirect Activities and Svcs 495 132 - 626 Direct Activities and Services 32 Code Enforcement/Compliance (Punitive) - - 32 1,069 Bldg Permit Processing/Plan Check/Review 395 311 1,775 Total Direct Activities and Services 1,101 395 311 1,807 1,596 Total 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 Notes Total 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 Notes Allocation Costs Share of Svcs & Supplies and Citywide Overhead 133,897 53% [b] $ Total Allocable ExpendituresDescription Notes % of Total Amount 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 Labor [a] Svcs/Supplies & Total Citywide OH Targeted Recovery from Fees Amount Recoverable from Fees Targeted Notes Hourly Rate Indirect Activities and Services General Admin; Mgmt; Policies; Procedures 15,178 6% 8,044 $ 23,222 $ 22,751 98% $ 13 $ $ Certification and Training 1,897 1% 1,006 $ 2,903 $ 2,844 98% $ 2 $ $ Public Information and Assistance 19% 48,464 $ 25,686 $ 74,150 $ 98% 72,647 $ 41 $ Total Indirect Activities and Svcs 65,539 26% 34,736 $ 100,275 $ 98,241 $ 55 $ $ Direct Activities and Services Code Enforcement/Compliance (Punitive) 3,794 2% 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 187,098 74% 99,162 $ 286,259 $ 280,454 98% $ 158 $ $ Total 252,637 100% 133,897 $ 386,534 $ 378,695 98% $ $ 213 < Hourly Rate $ 1,775 Direct Hours [a] Fee-Related Cost Recovery Analysis Direct Fee-Related Activity Hourly Rate Est. Annual Direct Hours Total Annual Fee Revenue Costs Aggregate Cost Recovery General Fund Notes Support Req'd Building Division Permitting, Plan Check, Inspection 213 1,775 $ 378,145 $ 312,555 $ 65,590 83% [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 Current Fee Cost of Svc Hourly Rate Est. Labor Time Fee Description Current Est. Cost Recovery Targeted Cost Note Proposed Fee Recovery 1 Electrical Plumbing or Mechanical Permits a) Per Permit 160 = $213 x 0.75 $159 100% 39% $62 $ b) Per Square Foot 0.11 = $213 x 0.001 $0.11 100% 56% $0.06 $ 2 Solar 320 = $213 x 1.50 $159 100% 0% $0 $ 3 Demolition Permit 160 = $213 x 0.75 $159 100% 39% $62 $ 4 Building Permits and Plan Check Fees [see table below for add'l details] 242,820 = $213 x 1,140 $242,820 100% 100% $243,366 $ 5 Microfilm 5 = $5 100% 100% $5 $ Fee Description Est. Labor Time (Bldg Permit and Cost of Svc Hourly Rate PC Only) 6 Sample Building Permit and Plan Review Categories a) Valuation Less than $5,000 107 = $213 x 0.50 $ b) Valuation $5,000 to $15,000 (e.g. repair and bathroom remodels) 426 = $213 1.5 - 2.5 hours x $ c) Valuation $15,000 to $50,000 (e.g. remodel bathroom ; pool; kitchen) 852 = $213 x 2.5 - 5 hours $ d) Valuation $75,000 or greater (e.g. additions ; add/remod; new structures) 3,408 = $213 x 8+ hours $ 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. Est Annual Hours Target Annual Volume Revenue Analysis at Current Fees Revenue Analysis at Full Cost Recovery Revenue Analysis Note at Proposed Fees 27,094 328 437 69,811 $ 69,483 $ [a] $ - 0 0 - $ - $ [a] $ - 30 20 6,390 $ 3,180 $ [a] $ 248 3 4 639 $ 636 $ [a] $ 243,366 1,140 132 242,820 $ 242,820 $ [a] $ 5,665 0 1,133 5,665 $ 5,665 $ $ 276,373 1,501 325,325 $ 321,784 $ $ Reasonable >>> Yes Yes Yes Yes Support Note >>> 100% recovery see hrly rate see actual rev see hrly rate 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 Total Description Amortization / Update Notes Annual Cost Frequency Estimated In-House Annual Labor Costs 10,064 10,064 1 $ [a] $ Housing Update 50,000 6,250 8 $ [b] $ General Plan Update 750,000 50,000 15 $ [b] $ Total 66,314 $ Calculation of Fee at Full Cost Recovery Notes Total Description 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 Proposed Fee Proposed Cost Recovery Current Cost Recovery Fee at Full Cost Recovery Current Fee Description Community Planning Fee 0% 0.36% 0.00% 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, in June 2023 by Resolution No. 23-3885, in June 2024 by Resolution No. 24-3906, and in June 2025 by Resolution No. 25-3934; 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

3.0% for 2025, 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 16th day of June 2026 by the following roll call vote:

Ayes:

Noes:

Abstain:

Absent:
______________________________
BY: Lionel M. Allan, Mayor
ATTEST:

______________________________
Gloisy Gonzalez-Langarica, City Clerk

EXHIBIT A
Fiscal Year 26/27 Fee Schedule

Services / Activities / Subject Matter Effective Date Page Planning Fees August 17, 2026 1 - 2
Public Works Fees August 17, 2026 3 - 4
Building Fees August 17, 2026 5 - 6
Administrative Services August 17, 2026 7
City of Monte Sereno

MASTER FEE SCHEDULE

City of Monte Sereno
MASTER FEE SCHEDULE - PLANNING FEES - EFFECTIVE AUGUST 17, 2026* Note Current Fee Proposed Fee
1 Planning Review of Building Permit $192 $197
2 Community Planning Fee (per $1 of valuation) [a] $0.0020 $0.0020 3 Significant Tree Removal (referred to Site and Architecture Commission) $100 $100 4 Site Development/Planned Development Permit:
a) New Houses/Demo Rebuild/Remodel/Addition 50% or more of existing SF $3,642 $3,751 b) Remodel/Addition less than 50% of existing SF $2,468 $2,542 c) Accessory Building/Fence Height $647 $666
e) Hillside Development (avg. slope of 10% of greater) $4,037 $4,158 f) Site Development Permit Amendment $1,689 $1,740
5 Administrative Building Site Approval $3,642 $3,751
6 Address/Street Name Change $456 $469
7 Environmental Review
a) Exemption $455 $469
b) Environmental Clearance
i) Reuse of Previous Environmental Clearance $455 $469
ii) Initial Study and Negative Declaration / Mitigated Negative Declaration $4,421 $4,553 iii) Initial Study and Negative Declaration / Mitigated Negative Declaration (prepared by consultant)
pass-through of actual
cost plus 10%
administrative fee
pass-through of actual
cost plus 10%
administrative fee iv) EIR (prepared by consultant) pass-through of actual cost plus 10%
administrative fee
pass-through of actual
cost plus 10%
administrative fee 8 General Plan Amendment $3,642 $3,751 9 Zoning Map Amendment $3,642 $3,751
10 Planned Development Zoning Map Amendment $6,505 $6,700 11 Annexation (excluding LAFCO Fees) $4,948 $5,096
12 Reasonable Accommodation Application $467 $481
13 Subdivision:
a) Lot Line Adjustment $1,953 $2,011
b) Tentative Map Application:
i) 4 Lots or Fewer: (Tentative Parcel Map) $3,905 $4,023 ii) 5 Lots or More: (Tentative Subdivision Map) $13,022 $13,413 c) SB9 Urban Lot Split $5,094 $5,247
14 Use Permits:
a) General $3,642 $3,751
b) Animals $500 $500
c) Special Land Use Permit (Historic Resource) $3,642 $3,751 15 Satellite Dish
a) Administrative Review $323 $333
b) Public Hearing $647 $666
16 Variance $3,642 $3,751
17 Appeal $360 $360
18 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $253 $260 19 Excess Plan Review Fee (per hour - 1 hour minimum) [b] $253 $260 20 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) [b] $253 $260 Activity Description

City of Monte Sereno
MASTER FEE SCHEDULE - PLANNING FEES - EFFECTIVE AUGUST 17, 2026* Activity Description Note Current Fee Proposed Fee
21 Work Commenced without a Permit [c] 1x Base Permit Fee 1x Base Permit 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 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.

City of Monte Sereno
MASTER FEE SCHEDULE - PUBLIC WORKS FEES - EFFECTIVE AUGUST 17, 2026* Note Current Fee Proposed Fee
1 Certificate of Compliance $1,258 $1,296
2 Encroachment Permit (Administrative) $419 $432
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 $2,935 $3,023
b) Per Lot Zoned: R-1-20 $1,965 $2,024
c) Per Lot Zoned: R-1-8 $970 $999
5 Final Map
a) Parcel Map $3,594 $3,702
b) Tract Map $10,782 $11,105
6 Grading Plan Check Fees Bill hourly/T&M Bill hourly/T&M 7 Grading Permit Fees
a) Less than 50 cubic yards $317 $327
b) 51 to 100 cubic yards $635 $654
c) 101 to 1,000 cubic yards
i) For first 100 cubic yards or fraction thereof $635 $654 ii) For each add'l 100 cubic yards or fraction thereof up to 1,000 cubic yards $35 $36 d) 1,001 to 10,000 cubic yards
i) For first 1,000 cubic yards or fraction thereof $952 $981 ii) For each add'l 1,000 cubic yards or fraction thereof up to 10,000 cubic yards $159 $163 e) 10,001 to 100,000 cubic yards
i) For first 10,000 cubic yards or fraction thereof $2,381 $2,452 ii) For each add'l 1,000 cubic yards or fraction thereof up to 100,000 cubic yards $582 $599 f) 100,001 cubic yards or more
i) For first 100,000 cubic yards or fraction thereof $7,619 $7,848 ii) For each add'l 1,000 cubic yards or fraction thereof $37 $38 8 NPDES Compliance
a) Plan Check
i) Less than 1 Acre $419 $432
ii) Greater than or Equal to 1 Acre $1,258 $1,296
b) Site Inspection
i) Less than 1 Acre $635 $654
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 $19 $20
b) Annual $108 $111
10 Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1 hour minimum) $317 $327 11 Excess Plan Review Fee (per hour - 1 hour minimum) [a] $317 $327 Activity Description

City of Monte Sereno
MASTER FEE SCHEDULE - PUBLIC WORKS FEES - EFFECTIVE AUGUST 17, 2026* Activity Description Note Current Fee Proposed Fee
12 Excess Inspection/Re-inspection/Missed Inspection Fee (per hour - 1 hour minimum) [a] $317 $327 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 17, 2026* Note Current Fee Proposed Fee
1 Construction Tax $0.51 $0.51
2 Electrical, Plumbing or Mechanical Permits:
a) Fee per Square Foot $0.1318 $0.1357
b) Minimum fee $190.48 $196.1944
3 Solar $190.48 $196.1944
4 Demolition Permit $190.48 $196.1944
5 Building Permit: [a]
a) Valuation: $1 to $500 $28.1527 $28.9973
b) Valuation: $501 to $2,000
i) Fee for first $500 $28.1527 $28.9973
ii) Fee for each additional $100, or fraction thereof, to and including $2,000 $3.6539 $3.7635 c) Valuation: $2,001 to $25,000
i) Fee for first $2,000 $82.9606 $85.4495
ii) Fee for each additional $1,000, or fraction thereof, to and including $25,000 $16.7718 $17.2750 d) Valuation: $25,001 to $50,000
i) Fee for first $25,000 $468.7127 $482.7741
ii) Fee for each additional $1,000, or fraction thereof, to and including $50,000 $12.0997 $12.4627 e) Valuation $50,001 to $100,000
i) Fee for first $50,000 $771.2046 $794.3407
ii) Fee for each additional $1,000, or fraction thereof, to and including $100,000 $8.3859 $8.6375 f) Valuation $100,001 to $500,000
i) Fee for first $100,000 $1,190.5003 $1,226.2153
ii) Fee for each additional $1,000, or fraction thereof, to and including $500,000 $6.7087 $6.9100 g) Valuation: $501,000 to $1,000,000
i) Fee for first $500,000 $3,873.9926 $3,990.2124
ii) Fee for each additional $1,000, or fraction thereof, to and including $1,000,000 $5.6904 $5.8612 h) Valuation: $1,000,001 and up
i) Fee for first $1,000,000 $6,719.2134 $6,920.7898
ii) Fee for each additional $1,000, or fraction thereof $3.7737 $3.8869 6 Plan Review Fees (In addition to building permit fees) [d] 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) [d] $127 $130.8588 Activity Description

City of Monte Sereno
MASTER FEE SCHEDULE - BUILDING FEES - EFFECTIVE AUGUST 17, 2026* Activity Description Note Current Fee Proposed Fee
b) Work Commenced without a Permit [b] 1x Base Fees 1x Base Fees c) Hourly Rate for Services Not Listed in this Fee Schedule (per hour - 1/2 hour min.) $255 $262.9520 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 schedule.
[d] 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. [e] Fees are applicable to all new and previously submitted projects in the process of plan checks and inspections.

City of Monte Sereno
MASTER FEE SCHEDULE - ADMINISTRATIVE FEES - EFFECTIVE AUGUST 17, 2026* 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) $0.26 $0 b) Zoning Map $5 $5
c) City History "Peaceful Mountain" $33 $34
d) Design Guidelines $8 $9
3 Alarm Soundings, within a 12-month period
a) First, Second, and Third Soundings No Charge No Charge b) Fourth $210 $216
c) Fifth $315 $325
d) Subsequent Alarms $315 $325
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

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: CONSENT CALENDAR
Staff Contact: Diana Perkins, City Manager
Department: City Manager
Title: Adoption of a Resolution Setting the Appropriations Limit for Fiscal Year 2026-27.

Recommendation(s):

Staff recommends the City Council adopt a resolution setting the appropriations limit for Fiscal Year 2026-27 based upon the price factor and population data provided by the State of California Department of Finance.

Analysis:

Article XIII of the California Constitution requires the City Council to annually set an appropriations limit by resolution. The appropriations limitations imposed by Propositions 4 and 111 creates a restriction on the amount of tax proceeds that 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 the 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 non-residential construction.
b. Population Factor – At the City’s option, either the annual change in City or County population.

Annually the City opts for the price and population factor that yields the most beneficial appropriations limit for the City. For 2026-27, this resulted in the change in California per capita income (4.95%) and the change in County population (0.23%).

The fiscal year 2026-27 appropriations limit and proceeds subject to the appropriations limit have been calculated consistently with past practice, which is to consider all City expenditures in the proceeds subject to appropriation calculation. Given the City’s existing budget structure, calculating the exemptions accurately is not possible. With the implementation of a new

financial system, it is expected that the fiscal year 2027-28 appropriations limit can be calculated with exceptions considered. The appropriations limit for fiscal year 2026-27 is $10,062,693, and the appropriations subject to the limit are $5,951,600, which is $4,111,093 below the appropriations limit.

California Environmental Quality Act:

This is not a “project” under the California Environmental Quality Act (“CEQA”) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment (CEQA Guidelines section 15378(b)(5)).

Fiscal Impact:

No fiscal impact is anticipated with the adoption of the draft resolution.

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. Draft Resolution - Appropriations Limit FY 26-27

RESOLUTION NO. 26-###

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026-27 WHEREAS, annually the City of Monte Sereno is required to establish its appropriations limit for each year pursuant to Article XIII B of the California Constitution; and
WHEREAS, the City Council is considering the appropriations limit for fiscal year 2026-27 in conjunction with its adopted budget; and
WHEREAS, the City Council has made available to the public the documentation used in determining the appropriations limit prior to the date of the meeting at which the appropriations limit is proposed to be adopted, and the City Council having heard all persons desiring to speak on the matter and having fully considered the matter.

NOW, THEREFORE, BE IT RESOLVED as follows:

1. The City Council does hereby approve and select the price and population factors that result in the most beneficial appropriations limit for the City of Monte Sereno for fiscal year 2026-27.

2. The City Council does hereby establish $10,062,693 as its appropriations limit for the fiscal year 2026-27.

3. The City Council does hereby establish $5,951,600 as the appropriations subject to the limit for the fiscal year 2026-27.

4. The City Council does hereby establish $4,111,093 as the appropriations under the limit for the fiscal year 2026-27.

REGULARLY ADOPTED AND PASSED this 16th day of June 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Lionel M. Allan, Mayor
ATTESTED:
__________________________
Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: CONSENT CALENDAR
Staff Contact: Diana Perkins, City Manager
Department: City Manager
Title: Adoption of a Resolution to Terminate the Monte Sereno City Council Potential Police Service Parcel Tax Ad Hoc Committee
Recommendation(s):

Staff recommends the City Council adopt a resolution to terminate the Potential Police Service Parcel Tax Ad Hoc Committee.

Report in Brief:

The City Council of Monte Sereno utilizes ad-hoc committees as subcommittees of the City Council for special assignments and to complete work tasks on projects which are later presented to the full Council for consideration. Ad-hoc committee assignments are for no more than one-year terms and expire automatically. While ad-hoc committees are not subject to Brown Act requirements regarding agendas and open meetings, any permanent or standing committees created by the City Council are subject to such requirements, even if less than a quorum of the Council sits on such committees. Thus, ad hoc committees should be limited in scope and duration of no more than one year.

At the August 19, 2025 City Council meeting, the Council established a Potential Police Services Parcel Tax Ad Hoc Committee and appointed Councilmembers Craig and Mekechuk to the Committee (Attachment 1 - Resolution number 25-3940).

At the May 18, 2026 Special City Council meeting, the Council decided to not pursue a parcel tax measure for an election in 2026 and reconsider options at the end of the year. Additionally, the Council directed staff to prepare the draft resolution to terminate the Potential Police Services Parcel Tax Ad Hoc Committee (Attachment 2)
California Environmental Quality Act:

This is not a “project” under the California Environmental Quality Act (“CEQA”) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment (CEQA Guidelines section 15378(b)(5)).

Fiscal Impact:

No fiscal impact is anticipated with the termination of the Ad Hoc Committee.

Public Noticing:

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

Attachments:

1. Reso No 25-3940 Establishing the Potential Police Services Parcel Tax Ad Hoc.docx

2. Draft Resolution Terminate Potential Police Parcel Tax Ad Hoc Committee

RESOLUTION NO. 25-3940

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO

ESTABLISHING THE POTENTIAL POLICE SERVICES PARCEL TAX AD HOC

COMMITTEE
WHEREAS, the City Council of the City of Monte Sereno (“City Council”) may establish project specific subcommittees to address an explicit purpose or need; and WHEREAS, project specific subcommittees are of a limited duration and should be active for no more than one year; and
WHEREAS, the City Council desires to establish a project specific ad hoc subcommittee to advise staff on a potential police services parcel tax ballot measure effective August 20, 2025 through August 19, 2026; and
WHEREAS, the purpose of the Potential Police Services Parcel Tax Ad Hoc Committee is to accomplish the following:
• Review options for placing a ballot measure on a general election; • Consider the amount to potentially increase the police service tax; • Discuss outreach options to inform the residents of a potential ballot measure; and
• Work with staff and any third-party consultants to complete the tasks noted above.

NOW, THEREFORE, BE IT RESOLVED that City Council hereby forms the Potential Police Services Parcel Tax Ad Hoc Committee effective August 20, 2025, until no later than August 19, 2026, to work with the City Manager to advise staff on a potential police services parcel tax ballot measure; and BE IT FURTHER RESOLVED that Council Member Burton and Council Member Mekechuk NAME are hereby appointed to the Potential Police Services Parcel Tax Ad Hoc Committee.

REGULARLY ADOPTED AND PASSED this 19th day of August 2025, by the following roll call vote:

AYES: SHANNON, MEKECHUK, ALLAN, CRAIG
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
APPROVED:

Docusign Envelope ID: CC6D7E67-AE65-46E5-9689-D05AAF6023E2

Burton Craig, Mayor
ATTESTED:

Gloisy Gonzalez-Langarica, City Clerk
Docusign Envelope ID: CC6D7E67-AE65-46E5-9689-D05AAF6023E2

RESOLUTION NO. 26-###

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTE SERENO

ESTABLISHING THE POTENTIAL POLICE SERVICES PARCEL TAX AD HOC

COMMITTEE
WHEREAS, the City Council of the City of Monte Sereno (“City Council”) may establish project specific subcommittees to address an explicit purpose or need; and

WHEREAS, project specific subcommittees are of a limited duration and should be active for no more than one year; and

WHEREAS, the City Council adopted Resolution No. 25-3940 to establish a project specific ad hoc subcommittee to advise staff on a potential police services parcel tax ballot measure effective August 20, 2025 through August 19, 2026; and

WHEREAS, the purpose of the Potential Police Services Parcel Tax Ad Hoc Committee is to accomplish the following:

Review options for placing a ballot measure on a general election; Consider the amount to potentially increase the police service tax; Discuss outreach options to inform the residents of a potential ballot measure; and
Work with staff and any third-party consultants to complete the tasks noted above; and
WHEREAS, the City Council desires to terminate this ad hoc committee; and NOW, THEREFORE, BE IT RESOLVED that City Council hereby terminates the Potential Police Services Parcel Tax Ad Hoc Committee effective June 17, 2026; and REGULARLY ADOPTED AND PASSED this 16th day of June 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Lionel M. Allan, Mayor
ATTESTED:

__________________________
Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: CONSENT CALENDAR
Staff Contact: Mike Weisz, City Engineer
Department: City Engineer
Title: Adoption of a Resolution to Adopt a List of Projects for Fiscal Year 2026/27 Funded by SB1: 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 2026/27 by SB1: The Road Repair and Accountability Act of 2017.

Analysis:

In April 2017, State Senate Bill 1, the Road Repair and Accountability Act of 2017, was passed by the State Legislature and signed into law by the Governor. SB1 addresses the significant multi-modal transportation funding shortfalls statewide and is intended to enable cities and counties to better address significant maintenance, rehabilitation, and safety needs on their local street systems by providing additional gas tax funding.

Prior to July 1st of each year, the City is required by the provisions of SB1 to adopt by resolution a list of street projects that will be funded by Road Maintenance and Rehabilitation Account (RMRA) funding through SB1 in the upcoming fiscal year. For reference, the City expects to receive an estimated $95,761 in FY 2025/26.

In considering which roads may receive RMRA funding, Staff prioritized roadway segments based on pavement condition index (PCI) to maximize lifecycle benefits and improve the City’s overall pavement network condition. Staff has identified the project segments shown in the table below for use of SB1 funding in FY 2026/27 and/or in upcoming years:
2025-2026
Street Name Beginning Location End Location Current PCI VISTA AVENUE SAN BENITO WAY POPPY LANE 32
BACHMAN AVENUE CITY LIMIT EAST END WEST 32
QUITO ROAD CITY LIMIT SOUTH CITY LIMIT NORTH 31
SAN BENITO WAY CITY LIMIT SOUTH VISTA AVE 37
EATON LANE VIA DEL SUR CITY LIMIT EAST 40

The streets listed above have some of the lowest pavement condition index (PCI) grades in the City. The PCI of each road is measured on a scale of 0 to 100, where a grade of 100 represents a newly paved road, with the current City-wide PCI being at 69. The City’s adopted policy is allocate at least $310,000 to pavement improvement projects to continue to improve the City-wide PCI on an annual basis.

Pavement work on these streets in totality will exceed the available SB1 funding. Funding from other paving-related sources will be required to complete the required pavement project.

In the event that funding is not available the number of streets proposed for repaving would be reduced accordingly.

Modifications to the SB1 funding project list are permitted, and Staff may recommend modifications when greater needs for funding, such as repairs associated with damage caused by inclement weather, emerge and funds are only used for eligible projects. 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 SB1, the City will prepare a report detailing the actual expenditure of SB1 funds during the year including the projects funded and the amount of funding expended. This report will be filed by December 1.

California Environmental Quality Act:

This is not a “project” under the California Environmental Quality Act (“CEQA”) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment (CEQA Guidelines section 15378(b)(5)).

Fiscal Impact:

SB1 funds received by the City in FY 2026/27, currently estimated to be in the amount of $102,332, will be applied directly towards the Annual Street Repair and Resurfacing Project.

This funding is in addition to the annual Highway Users Tax Account (or Gas Tax) funds the City receives, which is estimated in the amount of $110,824 for FY 2026/27. These funds are included in the draft budget to be considered for adoption by the City Council on June 16, 2026.

Public Noticing:

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

Attachments:

1. Draft Resolution Adopting a List of Projects for FY 26-27 Funded by SB1 The Road Repair and Accountab

RESOLUTION NO. 26-____
RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2026-27 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 $102,232 in RMRA funding in Fiscal Year 2026-27 from SB 1; and
WHEREAS, this is the tenth 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; 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 costeffective projects that also meet the communities priorities for transportation investment; and
WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate 5 roads throughout the City this year and similar projects into the future; and

WHEREAS, the 2023 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 previously proposed and adopted projects may also utilize Fiscal Year 2026-2027 Road Maintenance and Rehabilitation Account revenues in their delivery. With the relisting of these projects in the adopted fiscal year resolution, the City is reaffirming to the public and the State our intent to fund these projects with Road Maintenance and Rehabilitation Account revenues:

Project Title: FY26-27 Annual Pavement Management Program Project Description: Placement of AC overlays with and without digouts in some locations, and slurry seal and crack sealing in
others to rehabilitate the pavement surface
Project Location: Vista Ave – San Benito Way to Poppy Lane Bachman Ave – City limit east to end west
Quito Rd – City limit south to City limit north
San Benito Way – City limit south to Vista Ave
Eaton Lane – Via Del Sur to City limit east
Estimated Project
Schedule:

August-October 2026
Estimated Project Useful
Life:
10-20 Years
PASSED AND ADOPTED by the City Council of the City of Monte Sereno, State of California this 16th day of June, 2026, by the following vote:

Ayes:

Noes:

Abstain:

Absent:

BY: Lon Allan, Mayor
ATTEST:

Gloisy Gonzalez-Langarica, City Clerk

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: CONSENT CALENDAR
Staff Contact: Diana Perkins, City Manager
Department: City Manager
Title: Authorize the City Manager to Execute a Professional Services Agreement with Eide Bailly for Annual Financial Audit Services Recommendation(s):

Staff recommends that the City Council authorize the City Manager to execute the Professional Services Agreement with Eide Bailly for annual financial audit services.

Background Information:

The City of Monte Sereno has consulted with Maze and Associates Accounting Corporation for annual financial auditing services for the past four fiscal years. This year, Maze and Associates has begun providing accounting services for the City and can no longer serve as the financial auditor also.

Eide Bailly has provided the proposal in Attachment 1 to perform the annual financial audit for the fiscal year ending June 30, 2026 through June 20, 2030 Fiscal Year 2025-2026.

Fiscal Impact:

The cost of the annual financial audit will be included in the proposed Fiscal Year 2026/2027.

Public Noticing:

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

Attachments:

1. Consultant Agreement Eide Bailly - Financial Audit

1 AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement for Professional Services (“Agreement”) is made and entered into as of June 16, 2026 by and between the City of Monte Sereno, a California municipal corporation, hereinafter referred to as “City”, and Eide Bailly, a California LLP, hereinafter referred to as “Consultant”.

RECITALS
A. City desires to retain Consultant for certain professional services as set forth in this Agreement.

B. Consultant is specially trained, experienced and competent to perform the special services which will be required by this Agreement.

C. Consultant possesses the skill, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein.

NOW, THEREFORE, in consideration of the recitals and the mutual promises contained herein, City and Consultant agree as follows:

AGREEMENT

1. Scope. City agrees to, and hereby does, retain Consultant to perform the professional services as outlined in the Scope of Work attached hereto and incorporated herein as Exhibit A.

Consultant’s work product shall be performed pursuant to generally accepted standards of practice in effect at the time of performance.

2. Responsible Personnel: City has relied upon the professional training and ability of Consultant to perform the services hereunder as a material inducement to enter into this Agreement. Primary personnel responsible for Consultant’s completion of the work described in this Agreement shall be Ahmad Gharaibeh.

3. Scope of Work: Consultant shall perform the services as specified in Exhibit A in a professional manner. Any optional tasks listed shall not be performed by Consultant unless separately requested and prior authorization is provided in writing by the City Manager.

Proceeding with such additional work without express authorization, or undertaking any other work not listed in Exhibit A, shall be at Consultant’s sole risk. Consultant will not undertake any work that will incur costs in excess of the amount set forth in this paragraph without prior written amendment to this Agreement. To the extent there is a conflict between the terms of this Agreement and Exhibit A, the terms of this Agreement control.

4. Time of Performance and Term: The services of Consultant are to commence upon execution of this Agreement and shall continue until this Agreement is amended or terminated.

2 5. Compensation: Compensation shall be made for services performed as set forth in Exhibit A. Periodic payments to Consultant shall be made upon submittal of invoices by Consultant to City for review and approval by the City Manager or her designee. Invoices will be paid by City within a reasonable time after the invoices are received and approved. For purposes of this Agreement, a 30-day period shall be deemed a reasonable period.

6. Insurance: Consultant agrees to have and maintain, for the duration of the Agreement, the following minimum insurance requirements. Prior to the execution of the Agreement, Consultant shall provide proof of insurance required. Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City.

Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive Consultant’s obligation to provide them.

Coverage shall be at least as broad as:

1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 05 09 or 25 04 05 09) or the general aggregate limit shall be twice the required occurrence limit.

2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Contractor has no owned autos, covering hired, (Code 8) and non-owned autos (Code 9), with limit no less than $2,000,000 per accident for bodily injury and property damage.

3. Workers’ Compensation: as required by the State of California, with Statutory Limits.

4. Professional Liability (Errors & Omissions): As appropriate to Consultant’s services, and not less than $2,000,000 per claim.

The insurance policies are to contain, or be endorsed to contain, the following provisions:

The City of Monte Sereno, its Council Members, elected and appointed officers, agents and employees shall be named as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of Independent Contractor including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Independent Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 forms if later revisions used).

3 For any claims related to this Agreement, Consultant’s insurance coverage shall be primary insurance coverage (at least as broad as ISO CG 20 01 04 13) with respect to the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it.

Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance. Consultant agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

Consultant shall provide City with 30-day prior notice of termination or material change in coverage and ten (10) days prior notice of cancellation for non-payment.

7. Indemnity: To the fullest extent permitted by law, Consultant shall hold harmless, indemnify and defend City, its elective and appointive boards, commissions, officers, agents, servants, volunteers, and employees (the “Indemnified Parties”) from and against any and all claims, costs, damages, liability, losses, or suits (including court costs and attorney fees) for personal injury (including death), property damage and any other damages of any sort whatsoever, arising out of, or alleged to have arisen out of, the willful or negligent acts, errors, or omissions of Consultant or Consultant's contractors, subcontractors, agents, or employees in the performance of this Agreement.

For design professionals (as that term is defined by statute) acting within the scope of their professional capacity, to the fullest extent permitted by law, Consultant shall, at its own expense, indemnify, protect, defend (by counsel reasonably satisfactory to the City) and hold harmless any Indemnified Parties from and against any and all Liability, whether actual, alleged or threatened, which arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant, or as may be provided by statute in Civil Code § 2782.8, as may be amended from time to time.

Consultant’s duty to indemnify, protect, defend and hold harmless as set forth in this section shall include the duty to defend (by counsel reasonably satisfactory to the City) as set forth in California Civil Code § 2778. The Consultant’s responsibility to indemnify, defend, and hold harmless the Indemnified Parties under this section shall not extend to the negligence or willful misconduct of the Indemnified Parties. This section shall survive the termination of this Agreement.

8. Termination: This Agreement may be terminated by the City immediately for cause or by either party without cause upon fifteen days’ written notice of termination. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination.

4 If Consultant fails to perform any of its obligations under this Agreement within the time and in the manner herein provided or otherwise violate any of the terms of this Agreement, in addition to all other remedies provided by law, City may terminate this Agreement immediately upon written notice. In such event, Consultant shall be entitled to receive as full payment for all services rendered and expenses incurred hereunder, an amount which bears the same ratio to the total fees specified in the Agreement as the services rendered hereunder by Consultant bear to the total services otherwise required to be performed for such total fee; provided, however, that the City shall deduct from such amount the amount of damages, if any, sustained by City by virtue of the breach of the Agreement by consultant.

In the event of termination, Consultant shall deliver as a condition to the payment of the compensation provided for above, or otherwise make available to City, all research data, reports, estimates, summaries, and other such information and materials which would have been required to be delivered to City had this Agreement not been terminated, whether completed or in process in accordance with Section 9 of this Agreement.

9. Documents: Notes, studies, chain, computations, electronic files, and other data and information specifically prepared by Consultant for and required to be delivered to City under this Agreement shall, upon receipt of payment for services rendered, be made available to City by Consultant at City's request and shall become the property of City. In the event City alters the document, City agrees Consultant shall have no responsibility whatsoever for any claim arising out of, or alleged to have risen out of, use of the altered document, All plans, studies, documents, charts, computations, and electronic files prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion for its internal business purposes without further compensation to Consultant or to any other party. Consultant shall, at Consultant’s expense, provide such reports, plans, studies, documents and other writings to City upon written request.

10. Independent Contractor: Consultant is an independent contractor retained by City to perform the work described herein. All personnel employed by Consultant are not and shall not be deemed to be employees of City. Consultant shall obtain no rights to retirement benefits or other benefits that accrue to City’s employees, and Consultant hereby expressly waives any claim it may have to such rights. Consultant shall comply with all state and federal laws pertaining to employment and compensation of its employees and its agents, including the provision of Workers’ Compensation.

11. Licenses and Standard of Care: Consultant represents and warrants to City that, for itself and any subcontractors, all applicable licenses, permits, qualifications, insurance and approvals of any nature which are legally required of Consultant to practice its profession have been obtained any will be maintained during the performance of the Agreement. Consultant shall procure and maintain a City of Monte Sereno business license. Consultant shall use the standard of care in its profession to comply with all applicable federal, state, and local laws, codes,

5 ordinances, and regulations.

12. Assignment: The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant.

Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of the City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the City. If the City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such contractor other than as otherwise required by law.

13. Binding on Successors: This Agreement is binding on the heirs, successors and assigns of the parties hereto.

14. Amendment: This Agreement may be amended, modified or changed by the parties, provided that said amendment, modification or change is in writing and approved by the authorized representative of the parties.

15. Applicable Law and Attorney's Fees: This Agreement shall be construed and enforced in accordance with the laws of the State of California, and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Santa Clara. Should any legal action be brought by a party for breach of this Agreement or to enforce any provision of the Agreement, the prevailing party of such action shall be entitled to recover its reasonable litigation expenses, including attorney fees.

16. Entire Agreement: This Agreement constitutes the complete and exclusive statement of the agreement between the City and Consultant and shall supersede all prior negotiations, representations, or agreements, either written or oral. All provisions of this Agreement are expressly made conditions. For all purposes this Agreement shall be deemed to have been drafted jointly by all parties.

17. Waiver: Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this agreement.

18. Severability: If any term or portion of this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or otherwise unenforceable, the remaining provisions of this Agreement shall continue in full force and effect.

19. Equal Employment Opportunity. Consultant is, and warrants to the City that they shall be during the term of the Agreement, an equal opportunity employer and agrees to comply with all applicable state and federal regulations governing equal employment opportunity. Consultant will not discriminate against any employee or applicant for employment because of race, age,

6 sex, creed, color, sexual orientation, marital status or national origin. Consultant will take affirmative action to ensure that applicants are treated during such employment without regard to race, age, sex, creed, color, sexual orientation, marital status, or national origin. Such action shall include, but shall not be limited to, the following: employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; lay-offs or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. Consultant further agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.

20. City Not Obligated to Third Parties; Subcontractors; Oversight. The City shall not be obligated or liable for payment hereunder to any party other than the Consultant. Consultant shall ensure the following requirements are satisfied in the performance of the Agreement with respect to its own employees:

A. Workers’ Compensation. Consultant certifies that it is aware of the provisions of the California Labor Code which require every employee to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and Consultant certifies that it will comply with such provisions before commencing performance of the Agreement and at all times in the performance of the Agreement.

B. Prevailing Wage. Consultant and Consultant’s subconsultants (if any) shall, to the extent required by the California Labor Code, pay not less than the latest prevailing wage rates to workers and professionals as determined by the Director of Industrial Relations of the State of California pursuant to California Labor Code, Part 7, Chapter 1, Article 2. Copies of the applicable wage determination shall be available on file at the City’s office of the City Clerk.

C. Injury and Illness Prevention Program. Consultant certifies that it is aware of and has complied with the provisions of California Labor Code § 6401.7, which requires every employer to adopt a written injury and illness prevention program.

D. Consultant shall pay all taxes, assessments and premiums under the federal Social Security Act, any applicable unemployment insurance contributions, Workers Compensation insurance premiums, sales taxes, use taxes, personal property taxes, or other taxes or assessments now or hereafter in effect and payable by reason of or in connection with the services to be performed by Consultant.

The City is not responsible or liable for Consultant’s failure to comply with any and all of its requirements under this section and Agreement.

21. Political Reform Act Economic Interests. If City determines Consultant comes within the definition of Consultant under the Political Reform Act (Government Code §87100), Consultant shall complete and file and shall require any other person doing work under this Agreement to complete and file a “Statement of Economic Interest” with the Clerk of the City of Monte Sereno disclosing Consultant and/or such other person’s financial interests.

7 WITNESS WHEREOF this Agreement is executed by City and by Consultant on this 16th day of June 2026, at Monte Sereno, California.

CONSULTANT: CITY OF MONTE SERENO:

___________________________ ____________________________ By: Ahmed Gharaibeh, Partner Diana Perkins, City Manager Eide Bailly
APPROVED AS TO FORM: ATTEST:
______________________________ ______________________________ Kirsten Powell, City Attorney Gloisy Gonzalez-Langarica, City Clerk

8 EXHIBIT “A”

SCOPE OF WORK AND RATE SHEET

Title Page
May 26, 2026
Proposal for Professional Auditing Services
City of Monte Sereno
Submitted By:

Eide Bailly LLP
4040 Campbell Ave., Ste. 200
Menlo Park, CA 94025
Ahmad Gharaibeh, CPA
Partner
650.223.6103
[email protected]
Nathan Edelman, CPA
Partner
650.223.6115
[email protected]

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Table of Contents
Title Page.............................................................................................................................................................1 Signed Transmittal Letter ..............................................................................................................................3 External Quality Review..................................................................................................................................5 Description of the Firm ..................................................................................................................................7 Personnel.............................................................................................................................................................11 Team Continuity................................................................................................................................................11 Audit Approach and Methodology............................................................................................................16 Audit Schedule and Assumptions ..............................................................................................................23 California Government Client Listing ........................................................................................................25 References...........................................................................................................................................................26 Fee Information.................................................................................................................................................27 The Right Choice for the City of Monte Sereno....................................................................................28

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Signed Transmittal Letter
Your Goals, Our Commitment
Thank you for inviting Eide Bailly to submit a proposal to provide independent audit services to the City of Monte Sereno (the City) for the fiscal year ending June 30, 2026. Eide Bailly served as the City's independent auditor through Fiscal 2021, and we are glad to have the opportunity to serve you again. We recognize the deliberate investments the City has made to strengthen its accounting environment - including the migration to Tyler Technologies' cloud-based ERP Pro 10, a fully rebuilt chart of accounts and fund structure, fully digital workflows, and outsourced day-to-day accounting through Maze & Associates. These improvements position the City to be a highly efficient, primarily remote audit client, and we have built our approach to take full advantage of that efficiency while keeping your costs low. We also understand that the City does not prepare an ACFR; accordingly, our engagement is scoped to the City's basic financial statements and the report required under Government Auditing Standards.

Eide Bailly and key professional staff are properly licensed to practice in California. We agree to perform all of the work outlined in the Request for Proposal (RFP) within the time periods established. This proposal is a firm and irrevocable offer through August 31, 2026.

We understand that today’s business environment demands more than just technical expertise — it requires a partner who listens, adapts, and delivers value that aligns with your vision for success. We’ve crafted this proposal with your team in mind, focusing on the outcomes that matter most to the City and the challenges you’re navigating right now. Our objective is simple: to help you move forward with confidence. Whether it's protecting what you've built, improving performance, or uncovering new ways to grow, we are here to offer thoughtful support and practical solutions. Our service is grounded in a genuine understanding of your world.

The City won’t just retain an experienced service provider — you’ll work with a team that listens closely, responds quickly, and shows up with insight, not just answers. We’ve spent 70 years working with organizations in the government industry space, so we understand the pace, pressure, and purpose that drive your work. That perspective shapes everything we do. We’ve tailored this proposal with the City’s unique challenges and opportunities in mind. Here’s what you can expect from our relationship:
• Relationships come first. Our professionals work side by side with clients, building a deep understanding of their goals, challenges, and operations. This collaborative mindset allows us to offer tailored advice and solutions from a team that truly knows their clients’ organizations. • We believe in being more than just service providers — we’re partners in your success. Our team, from senior partners to support staff, stays involved year-round, offering timely, relevant insights, and fostering a relationship rooted in trust, responsiveness, and genuine care. • Every client is unique, and we take the time to understand their distinct qualities. With firmwide collaboration and seamless knowledge sharing, our teams leverage the experience of professionals across industries to deliver customized support and proactive guidance. • Strong relationships are built on consistent, meaningful communication. Eide Bailly’s client service model emphasizes open dialogue, prompt responsiveness, and a collaborative approach that treats clients as peers, ensuring the best outcomes for every engagement.

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We know the City and understand where you're headed. Our team brings a thoughtful, hands-on approach designed to support the City's momentum, strengthen your foundation, and help you move forward with clarity.

We're committed to being responsive, reliable advisors and would be glad to answer any questions as you evaluate next steps. We look forward to serving the City once again.

Warm regards,
As partners of Eide Bailly, Ahmad Gharaibeh and Nathan Edelman are entitled to represent the firm, empowered to submit the bid, and authorized to sign a contract with the City.

Ahmad Gharaibeh, CPA | Partner
650.223.6103 | [email protected]
Nathaniel Edelman, CPA | Partner
650.223.6115 | [email protected]

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External Quality Review
Our AICPA membership requires a third-party peer review of our audit and accounting practice every three years. Our most recent quality review included several government engagements and received a rating of 'Pass'.

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Desk Reviews
Pursuant to state-specific code, desk reviews are performed on certain audited financial statements and field reviews of audited financial statements and supporting working papers on a regular basis. In addition, Uniform Guidance and federal grant agreements and contracts may also require the review of financial statements and/or working papers by a federal or state agency. As these reviews are conducted, Eide Bailly cooperates fully with the agency requiring such reviews. We are not aware of any outstanding items as a result of the desk review.

Litigation/Disciplinary Actions
The firm and its partners, as well as our clients, may periodically be the subject of investigations, formal or informal inquiries, or requests for information from a variety of regulatory agencies. It is the policy of the firm not to discuss these matters, or any client-related matters, outside of the firm. It is the firm’s opinion that none of these activities have a material impact to the firm.

No member of the engagement team assigned to the City has been the subject of investigation or action by any law enforcement or regulatory agency in the past three years.

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Description of the Firm
Your Goals, Our Commitment
What Sets Us Apart
At Eide Bailly, we believe every organization has untapped potential. With more than 100 years of service and a team of over 3,500 professionals, we align our strengths with your ambitions to move you forward. Whether you’re navigating today’s challenges or preparing for what’s next, our mission is to help you optimize performance, safeguard what you have built, and plan for future growth so your business is stronger today, and even stronger tomorrow.

Your experience with Eide Bailly will be different than working with other CPA and advisory firms. Yes, accounting is about numbers — but our business is about relationships. When you work with us, you’ll feel the difference in how we collaborate, communicate, and genuinely care about your success. We deliver personalized service at a service-line level, while offering access to deep industry and service expertise across our national firm. Our professionals work with you to bring clarity, strategic thinking, and practical solutions to every engagement.

A Relationship, Not Just an Engagement
Our work with clients goes beyond the deliverables — it’s a relationship built on trust, shared values, and measurable results. When you choose Eide Bailly, you’ll:
• Partner with people who take the time to understand you and your organization — not just the numbers.
• Gain insights from specialized teams to address challenges, meet objectives, and uncover new opportunities.
• Make smarter decisions backed by experienced advisors who care about your long-term success.
• Experience our proactive, hands-on service model — always focused on helping you operate at peak performance.

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We Understand Governments
Our firm’s Government Industry Group has 300+ full-time professionals who share information, learn from others, and stay up to date on industry developments. To gain the greatest benefit, the knowledge is shared with professionals across the firm.

The government industry represents one of Eide Bailly’s largest niche areas — with more than 1,300 government clients firmwide. We provide audit services for a variety of cities, counties, colleges and universities, fire relief agencies, housing authorities, school districts, state agencies, and tribal entities. Through serving these clients, our professionals have gained focused expertise in the government industry and will provide you with insightful advice.

These services include, but are not limited to, evaluating internal control structure, assessing control risk, and performing tests of controls, as well as testing compliance with applicable laws and regulations in accordance with Government Auditing Standards.

Government Industry Involvement
Eide Bailly prioritizes staying current with changes to the government industry. We help clients adapt to changes within the existing standards and implement any new standards. Our team members are engaged in the government industry and are well positioned in organizations associated with government entities including:
• AGA (formerly Association of Government Accountants), local and national boards, and the Financial Management Standards Board.
• American Institute of Certified Public Accountants’ (AICPA) Governmental Audit Quality Center (GAQC), Private Companies Practice Section (PCPS) Technical Committee.
• Governmental Accounting Standards Advisory Council (GASAC). • Review committee of the Government Finance Officers Association’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting.
○ Brian Stavenger, Partner, serves on the GFOA’s Committee on Economic Development and Capital Planning.

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○ James Ramsey, Partner, serves on the GFOA’s Accounting, Auditing, and Financial Reporting Standing Committee.
• National Association of State Auditors, Comptrollers and Treasurers (NASACT). • Association of Local Government Auditors (ALGA)
• National Association of Housing and Redevelopment Officials (NAHRO) In addition, our team members have been sought out to present on government topics for multiple professional associations including the Institute of Internal Auditors and the Association of Certified Fraud Examiners.

Gerry Boaz, Governmental Accounting Standards Board (GASB) Implementation Specialist, has regularly attended GASB meetings since 2000 as part of his liaison duties and responsibilities for the State of Tennessee, State Auditor’s Office, and provided detailed summaries of those meetings to the NASACT. Gerry’s attendance on behalf of Eide Bailly at these meetings provides information for newsletters, e-blasts, and webinars.

We have been involved with many GASB task forces over the years that have shaped the future of state and local government accounting and financial reporting. Our task force participation include what became GASB No. 74 and 75 on Other Post-Employment Benefits (OPEB); GASB No. 103, Financial Reporting Model Improvements; the note disclosure project, which evolved into GASB Concepts Statement No. 7, Communication Methods in General Purpose External Financial Reports That Contain Basic Financial Statements: Notes to Financial Statements—an amendment of GASB Concepts Statement No. 3; and the current revenue and expense recognition (RER) model and voluntary digital financial reporting projects.

Due to our leadership positions, you will have access to information not available from other accounting firms.

Thought Leadership
A number of Eide Bailly partners are nationally recognized state and local government thought leaders who present at dozens of national venues throughout the year. These venues include:

GFOA; NASACT; California Society of Municipal Finance Officers; California State Association of County Retirement Systems; California Association of Public Retirement Systems; AGA National Professional Development Conference and multiple AGA chapters across the country; National Association of Housing and Redevelopment Officials (NAHRO); California, Florida, Iowa, Idaho, South Carolina, and Utah Societies of CPAs; and Colorado, Oregon, and Great Plains GFOAs.

We also provide training for state and local agencies, including:
• Commonwealth of Massachusetts
• Florida GFOA School of Governance
• Florida GFOA seminars and conferences
• Florida State Society of CPAs
• Idaho State Auditor's Office
• Minnesota State Auditor's Office
• Mississippi State Auditor's Office
• Montana State Auditor's Office and State
Controller's Office
• North Carolina State Auditor's Office and
State Controller's Office
• North Dakota State Auditor's Office
• South Dakota State Auditor's Office
• State of Montana
• State of Nevada
• State of Tennessee Controllers’ offices
• Texas AGA
• Texas State Auditor
• Virginia Beach IIA Chapter
• State of California State Controller’s Office
Stay Current and Learn More
www.eidebailly.com

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Furthermore, an Eide Bailly retired partner was the author for the entire Governmental Library for Commerce Clearinghouse Wolters Kluwer (CCH). This library serves as the interpretative reference on government Generally Accepted Accounting Principles (GAAP), government best practices and government audits for governments, auditors, and educators nationwide.

Online Publications: We publish articles related to hot issues within the government accounting arena. Below is a list of some of the recent articles posted to our website and emailed to our clients:
• CMMC: How Department of Defense Contractors Can Comply with Evolving Cybersecurity Requirements • GASB Advances Key Projects in September 2025 Meetings • 5 Benefits of Hiring a Virtual Chief Information Security Officer (vCISO) • What Governments Need to Know About New Accounting Standards Implementation of New Standards
In an industry where standards continually evolve and change, Eide Bailly makes it a priority to stay current and assist our clients with necessary changes. In addition to helping clients implement new standards, we also help them adapt to changes within the existing standards.

Several of our professionals serve on committees that have direct input into writing new standards. This enables our involvement from the beginning and ability to influence the final outcome. Our clients benefit from our strong understanding of the standards and how they may affect their organization. We will work with the City to create a plan to address new standards one to two years prior to implementation.

Single Audit Experience
While the City does not currently expend federal awards at a level that triggers a Single Audit under the Uniform Guidance (generally $750,000 or more in a fiscal year), Eide Bailly maintains deep Single Audit expertise should the need arise. We audit billions of dollars in federal expenditures annually across a wide range of federal programs and assist clients with the Data Collection Form and the reporting package for submission to the Federal Audit Clearinghouse. Should the City receive significant federal funding in the future, we can provide this service seamlessly and advise on establishing strong controls over new federal programs.

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Personnel
Connecting the Right Resources
We’re passionate about our work — and your success. We’ve selected professionals for your service team who are the right fit for your engagement, based on their knowledge and experience in the government industry.

Ahmad Gharaibeh and Nathan Edelman will serve as the Engagement Partners, with Janice Yu and Hannah Hwang serving as Audit Managers. These professionals are licensed to practice public accounting and bring strong credentials and a desire to work with the City. If awarded these engagements, these individuals will serve as your primary contacts. Additional resources will support the project team as necessary.

Senior and Staff Associates
Once we determine the timing that works best for you, we’ll assign a senior and staff associates to your engagement. Our seniors are experienced in public accounting, with several who specialize in the government industry. All members of our staff are required to comply with necessary continuing professional education (CPE) requirements, and most members of our staff significantly exceed their required amount.

Team Continuity
To help ensure a strong business relationship and to minimize disruptions, we keep staffing changes to a minimum. Compared to the national average, Eide Bailly experiences a higher retention rate, which translates to providing our clients with consistent service teams. We’ll strive for continuity of staff for your engagement. With this continuity comes quality as team members’ knowledge of your organization grows from year to year.

Should the need arise to change any of the key engagement personnel, we’ll notify you in writing and provide the qualifications of the proposed replacement. Upon your approval, new engagement personnel will join your service team.

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Ahmad Gharaibeh, CPA
Partner | Menlo Park, CA
I truly enjoy helping my clients. The government accounting industry continues to change and I enjoy assisting my clients understand the changes and how to implement them.
650.223.6103 | [email protected]
Ahmad provides audit and accounting services to a variety of organizations focusing primarily on municipalities, including cities, transit agencies, counties, water, sewer and sanitation districts, joint powers authorities, community colleges and other special districts. He has performed the financial and compliance audits of federal awards in accordance with OMB Circular requirements to entities receiving over $1 billion in federal funds. In addition to audits of government agencies, he provides audit and accounting services to commercial industry entities, including healthcare and manufacturing.

Ahmad provides annual training to firm staff through in-house continuing professional education to ensure consistency and knowledge are not just at the partner level, but also with the entire team providing services to our clients.

He also provides annual audit and accounting updates for many of his government clients and industry groups.

Client Work
Speaks at many of the municipal California Society of Certified Public Accountants (CalCPA) local chapters including Monterey Bay/Santa Cruz, Alameda and the Peninsula local chapter of the California Society of Municipal Finance Officers (CSMFO) and Association of Government Accountants (AGA).

With over 25 years of experience in auditing public agencies, he is the government department head, leads the government audit practice in the Bay Area and serves clients with revenues exceeding $1 billion.

Single audit experience includes audits of programs from the Department of Transportation, Department of Education, Department of Defense, Department of Health and Human Services and a variety of other agencies.

Provides other services to his government clients which includes forensic auditing, internal audit services and consultation on various aspects of accounting for municipal agencies.

Memberships
California Society of Certified
Public Accountants
American Institute of Certified
Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Master of Accountancy - East
Tennessee State University
Similar Clients
City of Livermore
City of San Ramon
City of Santa Cruz
City of Campbell
City of East Palo Alto
City of Capitola
City of Monterey
City of Glendale
City of Whittier
City of South Lake Tahoe
County of Orange
County of Sacramento
County of San Bernardino
County of Solano
County of Sonoma

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Nathan Edelman, CPA
Partner | Menlo Park, CA
We're all working for the same goals; if our clients succeed, we succeed. 650.223.6115 | [email protected]
Nathan provides assurance services to some of the largest governmental organizations in the Bay Area. His current practice focuses on serving transportation agencies, municipalities, school districts, and special districts. Nathan's experience includes leading federal single audits for entities that have received more than $1 billion in federal grants, which includes those labeled as "high risk" by federal or state granting agencies.

Nathan is dedicated to supporting the governmental accounting industry in the San Francisco Bay Area. Alongside our industry partners, he has led the design and delivery of highly specialized training materials and presentations on implementing new governmental accounting standards.

In addition to working with clients, Nathan is actively involved in governmental technical committees and conferences, including GFOA, CSMFO, AICPA, and CalCPA.

Client Work
Provides training to firm staff related to the Uniform Guidance Updates.

Advises and assists clients with disclosure and financial reporting requirements pursuant to the Government Finance Officers Association (GFOA) certificate program.

Provides comprehensive evaluation of financial reporting, internal controls and governance when performing audit procedures.

Memberships
American Institute of Certified
Public Accountants
California Society of Certified
Public Accountants
GFOA Annual Comprehensive
Financial Report Special Review
Committee
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Arts, Business
Management Economics -
University of California, Santa
Cruz
Community
California Society of Certified
Public Accountants, Board
Member
Association of Government
Accountants
California Society of Municipal
Finance Officers
Similar Clients
City of Livermore
City of San Ramon
City of Santa Cruz
City of Campbell
City of East Palo Alto
County of San Benito
County of Solano

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Janice Yu, CPA
Manager | Menlo Park, CA
I find great fulfillment in helping clients understand the regulatory standards, building a collaborative relationship with clients and supporting them in making informed decisions based on reliable data.
650.223.6164 | [email protected]
Janice has provided accounting and audit services to local governments for over five years. She specialized in performing audit and assurance services of governmental entities including cities, transit authorities and special districts.

With Janice, you can expect to work with a dedicated and skilled auditor with a proven track record of delivering accurate, transparent and compliant financial assessments. She stays abreast of accounting standards, regulations and Government Accounting Standards Board (GASB) pronouncements. She has the ability to understand your organization, conduct an efficient and accurate audit enabling clients to make informed decisions and address any identified issues promptly.

She communicates to clients fostering a collaborative relationship and facilitating a smooth audit process.

Outside of work, Janice enjoys traveling, spending time with her family and friends and exploring different restaurants.

Client Work
Performs financial statement audits, compliance testing and single audits for a variety of industries including cities, transportation agencies and special districts.

Leads the assurance and audit team to conduct audit engagements ensuring the financial statements are accurate, comply with regulations and provide a reliable basis for decision-making.

Deliver timely and accurate financial statements to meet deadlines.

Memberships
American Institute of Certified
Public Accountants
California Society of Certified
Public Accountants
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Accountancy -
University of California, Santa
Barbara
Master of Accountancy - San Jose
State University, San Jose
Similar Clients
City of Livermore
City of Campbell
City of East Palo Alto
City of San Ramon
Town of Hillsborough
City of Monterey
City of Capitola
San Mateo County Transit District
Santa Clara Valley Transportation
Golden Gate Bridge District

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Hannah Hwang, CPA
Manager | Menlo Park, CA
I am inspired by unique challenges each client and industry has and always motivated to solve and assist each client in a professional and personable manner.

My goal is to provide a truly interactive and reliable experience for my clients. 650.223.6116 | [email protected]
Hannah provides audit and assurance services to a variety of industries, including local governments, school districts, transportation agencies, special districts, nonprofit and for-profit entities in the Bay Area.

Clients can expect consistent, reliable and timely service when working with Hannah. She strives to provide a personable experience throughout the engagement and is eager to assist her clients with any accounting related matters. She is always learning new accounting changes and GASB pronouncements to update her knowledge in order to better assist her clients and to apply it to her engagements.

Outside of work, Hannah enjoys spending time outdoors such as surfing at various California hot spots, playing tennis with her spouse and playing a round of golf.

Client Work
Leads the audit and assurance engagements in a variety of industries, including local governments, school districts, transportation agencies, special districts, nonprofits and for-profit entities for major steps of the audit procedures including, planning, execution and reporting.

Performs single audits and state compliance audits for special districts, local governments, school districts, transportation agencies and nonprofits.

Prepares financial statements and reports for all above mentioned industries.

Memberships
American Institute of Certified
Public Accountants
California Society of Certified
Public Accountants, Board
Member, Peninsula/Silicon Valley
Chapter
Designation/Licensures
Certified Public Accountant
Education
Bachelor of Arts, Business
Management: Entrepreneurship -
San Diego State University
Accounting Certification -
University of California, Los
Angeles Extension
Similar Clients
City of Livermore
City of Campbell
City of East Palo Alto
City of San Ramon
Town of Hillsborough
City of Monterey
City of Capitola
San Mateo County Transit District
Santa Clara Valley Transportation
Golden Gate Bridge District

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Audit Approach and Methodology
Audit Methodology
At Eide Bailly, we promise you a better overall experience. Though multiple firms are capable of accomplishing the objectives of an audit, we appreciate that every situation and every organization is different, and our tailored approach is based on the needs of each client.

We value our business relationships and demonstrate this through partner and manager involvement. Our senior-level professionals are involved with our clients and accessible throughout the year. They do not delegate all tasks to staff but rather stay involved on-site during fieldwork and remain connected throughout the year.

This approach delivers the greatest benefit to our clients because we are able to stay abreast of changes in and updates to our clients’ operating environments and collaborate to achieve optimal results.

Our clients experience a communication approach that stands apart in both style and frequency. Because we recognize effective interaction is critical throughout the entire audit process, our service and communication begins with planning and continues throughout the year. Additionally, we communicate collaboratively with our clients and include them in the process as our peers. Our clients offer a wealth of knowledge and information about their organization, and interacting with them as a business peer ultimately produces the best outcome.

Prior to beginning the engagement, we will discuss with management:
• The engagement timeline.
• The audit approach and process.
• Additional considerations that may affect scope, schedules, and workpapers to be prepared by your personnel.

Upon appointment as your auditor, we will discuss the audit schedules and work with you to ensure the timeline meets your needs and makes the most effective use of your staff members’ time.

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Audit Work Plan
Our audit approach is designed for collaboration and optimal results. It consists of five major components:

Planning, Interim Work, Fieldwork, Reporting, and Ongoing Communication. If awarded, we will discuss with management our proposed schedule, but we also have the flexibility to make any changes to meet reporting deadlines. The objectives of each component are:

Planning
• Discuss and finalize the engagement timeline, audit approach, and process. • Discuss risks and concerns of the management and accounting staff, including the City Council, if requested.
• Evaluate the nature of the operating environment (e.g., changes in volume, degree of system and reporting centralization, sensitivity of processed data, impact on critical business processes, potential financial impacts, planning conversions, and economic and regulatory environment). • Review interim financial information and reports to identify significant risks and changes. • Review significant estimate areas and consider underlying assumptions. • Update our understanding of the City, its reporting units and their environments. • Document internal control systems, including IT, and related changes from prior periods. • Consider fraud, risk of noncompliance, illegal acts, abuse, etc. • Assess audit risk and identify potential audit issues. • Assess materiality and testing scopes, to the extent possible, and present audit plan. • Prepare and communicate audit request lists and workpapers. • Develop expectations regarding timing and audit progress.

Interim Work: Financial Statement
• Communicate with management to determine internal controls, perform walk-throughs and to discuss any potential audit issues.
• Determine audit procedures by area, based on results of planning and risk assessment. • Determine confirmation needs.
• Prepare listing of audit information requested from the City. • Review minutes, resolutions, and ordinances.
• Perform tests of legal compliance.
• Provide weekly updates to City staff.
• Hold exit conference with management.

Final Fieldwork
• Audit areas based on risk assessment.
• Obtain and prepare schedules and analyses supporting the financial information. • Discuss findings with management, if any.
• Discuss proposed journal entries with management, if any.

Planning Interim Work Fieldwork Reporting Ongoing
Communication

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• Provide weekly updates to City staff.
• Hold exit conference with management.

Reporting
• Review of financial statements by the Engagement Partner. • Review of financial statements by the Technical Review Partner to obtain a second opinion on the completeness and adequacy of financial statement disclosures and audit procedures. • Complete management letters and review with management. • Prepare other communications to management and the City Council. • Present to the City Council at its regularly scheduled meeting, if requested.

Ongoing Communication
• Obtain interim financial statements throughout the year for review. • Analyze significant changes and identify areas to further tailor our audit plans and keep us up to date with continuing changes.
• Compare interim results to year-end results for the past few years to identify potential issues in the financial reporting process.
• Participate periodically at your City Council meetings, and any other meetings, upon request.

We take a “no surprises” approach to our engagements. We work closely with management and accounting personnel throughout the audit process, hold weekly meetings to review open items, discuss potential accounting or compliance issues, and provide periodic written or oral reports on the status of the audit to representatives of the City. At the end of fieldwork, we will hold an exit conference with management to discuss any potential findings and come to a conclusion. We strive not to have additional findings subsequent to the exit conference.

Use of Technology
Eide Bailly staff utilizes progressive and effective software to streamline processes and make them as efficient as possible. These technologies include:

EB Bridge
Our client portal, EB Bridge, is designed to strengthen the relationship between Eide Bailly and our clients, facilitating collaboration and connection between our clients and employees. EB Bridge enables clients to engage effectively throughout their interactions with improved processes, better document management, and a more efficient annual client access review.

Suralink
Suralink is an interactive Provided by Client (PBC) software solution which improves the client experience for document exchange. This addition to our suite of tools saves a substantial amount of time managing PBC documents, creating increased efficiencies during your engagement.

DataSnipper: Eide Bailly's audit approach is enhanced by the use of DataSnipper, a powerful Excel add-in that improves efficiency and fosters effective auditing practices. This innovative tool allows us to leverage artificial intelligence (AI) for automated document matching. With configurable templates for standardized audit procedures, DataSnipper streamlines workpaper preparation and review while enhancing collaboration within our audit practice.

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CCH ProSystem fx Engagement by Wolters Kluwer
This software is used to perform the audit, retains the electronic workpapers and supporting documentation, performs project tracking and facilitates quality engagement review.

Artificial Intelligence (AI)
Eide Bailly’s approved AI tools are Microsoft CoPilot and Ask Blue J. Microsoft CoPilot is available to be used throughout the organization to securely automate and enhance processes. Ask Blue J is available for use in our tax practice to research and analyze complex tax matters.

Our approved AI solutions are supported by a rigorous commitment to security, privacy, and compliance. All client data remains within our secure U.S. based environments and is never used to train external models. We leverage trusted platforms and enterprise-grade controls to ensure data protection, transparency, and traceability at every stage.

Flexibility to Meet Your Needs
Eide Bailly performs all engagements in a paperless environment. As a technology-driven firm, we’ve seen no issues in performing audit procedures off-site from our clients. We utilize tools, such as using Microsoft Teams, which allows us to communicate with our clients face to face, while sharing screens, to make the process as seamless as possible. We host webinars to educate our clients on changing circumstances and how to successfully navigate those changes. We have no concerns completing this audit remotely should the City desire it. We’ll discuss with management which approach, remote versus on-site, works best for you.

Analytical Procedures
Analytical procedures will be applied throughout general planning to improve our understanding of your operations and to identify audit areas for increased attention. These will assist in planning the nature, timing and extent of other procedures, and will be applied to all balance sheet, revenue/receipt and expense/expenditure areas. Procedures include the comparison of current year to prior year and budget amounts. Areas that show results different from those anticipated or planned will be further investigated to determine the validity of the variance.

During Year-end Fieldwork: Analytical procedures are used to test whether errors affecting account balances or classes of transactions have occurred by comparing the recorded amount with an independently developed expectation of that amount. The expectation is developed in such a way that a significant difference between the expectation and the recorded amount is indicative of a financial statement misstatement, unless we can obtain and corroborate explanations for the difference. Analytical procedures are a natural extension of our understanding of your business because the key factors that influence your business may be expected to affect the financial data.

During Reporting: Our last step is to perform a final analytical review at the financial statement level to ensure we comprehensively understand the financial statements during the audit engagement and to determine whether the financial statements are appropriately presented and contain appropriate disclosures. Such final analytical procedures highlight and explain significant changes from the previous year and ensure such changes are consistent with the knowledge of your business and our audit evidence.

These procedures typically consider trends based on several previous years, instead of comparison only with the prior period.

Internal Control Structure
A significant aspect of the planning process involves understanding each reporting unit’s internal control environment, including IT controls and, where relevant, testing of internal controls. The following is a summary of our process regarding internal controls over financial reporting and compliance:

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Internal Controls over Financial Reporting
Our approach will start with any documentation related to internal controls already developed. We review that documentation to obtain an overview of the internal control system and then conduct interviews with your staff to complete the documentation of our understanding related to internal controls and significant changes each year.

After conducting the interviews, we will evaluate the internal control system design and expected operating effectiveness for significant areas depending on the reporting unit. By completing control testing in these areas, we expect to reduce substantive testing to conduct an efficient audit. Our approach will be focused on key process controls or overall system controls, rather than detailed control processes. We will also focus on key IT related controls in areas such as revenue, payroll and claims, for more efficiency from an audit perspective relative to the control process.

Our risk-based approach incorporates control testing and substantive tests of balances, where appropriate. In certain areas that are not as significant, we will conduct the audit using a primarily substantive approach. Our experience is that substantively auditing a balance rather than completing an extensive control test is often more efficient and effective.

Internal Controls over Compliance
Our approach for internal controls over compliance - including compliance with the laws, regulations, contracts, and grant agreements applicable to the City - mirrors our approach to internal controls over financial reporting in the accumulation, documentation, and evaluation of the control environment.

We identify the key controls applicable to the City's significant compliance requirements for testing and incorporate the results of our tests of internal controls over financial reporting and information technology.

The approach to understand your internal controls includes:
• Interview City personnel.
• Review organizational charts, accounting and procedure manuals and programs. • Complete internal control questionnaires.
• Write up system narratives.
• Evaluate items selected for testing.
• Review controls over financial information systems.

The timely completion of this work allows us to perform our work efficiently and promptly communicate any potential recommendations.

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In addition, our engagement approach is based on:
• Observations we believe will help achieve objectives. We are pleased to respond to inquiries about financial or other business matters.
• The assistance to be provided by your personnel, including preparation of schedules and analyses of accounts, will be discussed with the finance department. Timely completion of this work will assist us in performing our work efficiently.

Statistical Sampling
Sampling may be performed for tests of controls, compliance testing and substantive tests of certain accounts and transactions. During our basic financial statement audit, we will also select various transactions for testing based on materiality assessed at the appropriate level. These transactions may include such items as capital asset additions, expenditures, subsequent disbursements and subsequent receipts. We will be pleased to discuss specific sample sizes and selection methods when they are determined, either during planning or fieldwork.

We will select the appropriate sample size to support our conclusions in compliance with laws and regulations.

We will use confirmations in areas deemed necessary such as cash and investments, and receivables.

Determining Laws and Regulations Subject to Audit Test Work During the planning process, we will also discuss with management and personnel the laws and regulations to which the City is subject. The objective will be to determine those laws and regulations that could have a material impact on the financial statements or are pertinent to your federal financial assistance programs. Our knowledge of such laws and regulations and Government Auditing Standards will be essential to the discussion.

We are aware of the applicable requirements and consider them when determining the necessary audit procedures.

During our audit procedures, we will:
• Perform tests of compliance with certain provisions of laws, regulations, contracts and grants. • Assess the risk of material misstatement resulting from violations of laws and regulations having a direct and material effect on the determination of financial statement amounts. These laws and regulations can relate to items such as budgetary compliance, purchasing compliance and cash and investment compliance, as well as single audit compliance, as applicable. • Combine compliance tests of laws and regulations involving the inspection of documentation supporting transactions with substantive tests of transactions and tests of control procedures.

Our audit will meet all applicable federal and state requirements. Samples will be used to the extent necessary to support our conclusions on compliance with laws and regulations.

Multi-Year Approach
We attempt to retain the majority of the audit team in order to develop a historical perspective of the operating and control environment of the City. This allows us a deeper understanding of the risks surrounding the City and the ability to perform a thorough audit without a learning curve. Our preliminary review results in a planned calendar of audit events, timing and expectations based on the budgets and related materials, organizational charts, manuals and programs, and financial and other management information systems.

We also have the resources to change your engagement team while retaining the organizational insight we gain over the years, if you think you would benefit from auditor rotation. Eide Bailly’s government professionals have extensive experience in the industry and an important advantage from the firm’s focus on continuing education.

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These individuals are well positioned in organizations associated with government entities, such as the AICPA and GAQC, the primary purpose of which is to promote the importance of quality government audits, and have held leadership roles in the GFOA.

We will be available throughout the year as a valuable resource to answer questions, have discussions and confirm the appropriate accounting treatment for unique or infrequent transactions.

Maintaining Positive Relationships
Our number one goal is to meet the City’s expectations while providing the necessary required audit services.

We work with our teams to provide the best client service and select team members based on that goal.

However, there are times we may not meet that expectation or fall short in meeting client satisfaction. When those times occur, we admit our shortcomings and meet with management to determine on an agreed upon plan to improve those areas.

As the engagement partners, Ahmad Gharaibeh and Nathan Edelman are responsible for monitoring the City’s satisfaction of our services and will meet with management during the year to evaluate the overall satisfaction and make any necessary adjustments.

Our clients know and respect us for our positive culture — we’re also proud to be ranked in the 2025 Vault Top 25 Accounting Firms list for client interaction. Negative comments are relatively infrequent. Over the past three years, Eide Bailly’s Net Promoter Score (NPS) has maintained at or been near 70. For context, the professional survey firm ClearlyRated reports an average NPS of 38 for the accounting industry. While we know our score reflects a high level of satisfaction, we're committed to consistent and regular improvements to drive continual improvements for our client base.

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Audit Schedule and Assumptions
Eide Bailly commits to you that if your team is prepared for the audit when our team is in the field, we will meet your deadlines. We will work closely with your team through the planning stages to clearly define expectations and the items required from your team in order to facilitate an efficient audit to enable us to meet your deadline. The following table identifies the structure of our audit for City reports and the timing of each section:

Activity Timing
Planning August 2026
Interim Work September 2026 (remote)
Fieldwork October/November 2026 (1 week,
remote)
Reporting
December 2026, with final report
delivered on a date mutually agreed
with the City
Ongoing
Communication Throughout the Year
By engaging in thorough audit planning and communications with management, we begin each engagement with a strong understanding of the various deadlines for each of the financial and single audits and the steps involved along the way to meet these deadlines. An audit project plan will be developed between our team and the City and then followed closely, and we will work with the City’s management team to customize our auditing services and specific timelines to your needs. We believe in clear, up-front, and open communication with no surprises.

Assistance from Your Staff
Your service team will meet with the City’s management for initial planning and a pre-audit conference to discuss audit schedules and review prior year problems (if any). We'll then provide the City personnel a Prepared by Client Guide (PBC), which highlights the work papers and information needed for the engagement process.

We'll hold meetings with the accounting personnel throughout the audit process determining the list of open items and the plan to finalize those items.

During the engagement, our use of the City personnel will include answering questions, updating schedules, addressing issues identified, and obtaining support documentation. Our processes focus on performing the engagement efficiently, which includes constant communication amongst the team members so we're not asking redundant questions or requesting the same document several times. We also hold weekly meetings with management to determine the audit status and any outstanding items to be addressed. This keeps the number of hours needed by the City personnel to a minimum.

We ask our clients to have the requested schedules, documentation, confirmations, and financial statements prepared by the requested dates. Having these items prepared before we arrive for final fieldwork ensures the success of meeting the mutually agreed upon deadlines.

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California Government Client Listing
Proud to Serve California Governments
We have served local governments in California for over 70 years performing numerous audits of government entities. A summary of California government clients served within the last five years is provided below:

Cities
City of Alameda City of Folsom City of Lemon Grove City of Rancho Mirage City of Saratoga City of Brawley City of Foster City City of Los Altos City of Rohnert Park City of South Lake Tahoe City of Brea City of Glendale City of Monte Sereno City of Roseville City of Suisun City City of Brentwood City of Gonzales City of Napa City of Sacramento City of Temecula City of Campbell City of Grand Terrace City of Oceanside City of San Jacinto City of Temple City City of Chico City of Greenfield City of Palmdale City of San Leandro City of Walnut City of Concord City of Huntington Park City of Paramount City of San Ramon City of Walnut Creek City of Dana Point City of Indian Wells City of Pleasanton City of Santa Clara City of Whittier City of Davis City of Laguna Beach City of Rancho Cordova City of Santa Clarita City of Fairfield City of Laguna Niguel City of Rancho Palos Verdes City of Santa Cruz Transportation
John Wayne Airport Orange County Transportation Authority Riverside County Transportation Commission Caltrain Sacramento Area Council of Governments Golden Gate Bridge, Highway & Transportation District North County Transit District Transportation Authority of Marin San Francisco County Transportation Authority Monterey-Salinas Transit Sacramento International Airport Alameda County Transportation Commission High Desert Corridor JPA San Mateo County Transit District Santa Clara Valley Transportation Authority SR 91 Express Lanes Victor Valley Transit Authority Imperial County Transportation Commission Omnitrans San Joaquin Regional Rail Commission Ventura County Transportation Commission Solano Transportation Authority Capital SouthEast Connector JPA Sewer, Sanitation & Flood Agencies
Bayshore Sanitary District Knights Landing Community Services District Fairfield-Suisun Sewer District Central Contra Costa Sanitary District Sacramento Regional County Sanitation District Sacramento Area Sewer District Central Marin Sanitation Agency Alameda County Waste Management Authority West Bay Sanitary District Cupertino Sanitary District Vallejo Sanitation and Flood Control District Oro Loma Sanitary District Delta Diablo Sanitation District Madison Community Services District West Valley Sanitation District East Bay Discharge Authority Riverside County Waste Management Ross Valley Sanitation District Union Sanitary District Orange County Waste & Recycling County Governments Water Agencies
County of Riverside County of Shasta Helix Water District Sacramento County Water Agency County of Sacramento County of Solano Santa Clara Water District Sacramento Groundwater Authority County of San Diego County of Sonoma Reclamation District 2035 Elsinore Valley Municipal Water District County of San Joaquin County of Ventura Santa Margarita Water District Montara Water and Sanitary District County of San Bernardino County of Yolo Yolo-Davis Clean Water JPA Beaumont Cherry Valley Water District County of San Benito County of Placer Yucaipa Valley Water District Municipal Water District of Orange County County of Orange Moulton Niguel Water District California State Department of Water Resources Suisun-Solano Water Authority

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References
Experience You Can Trust
As a top 20 CPA firm, we’ve built our business on relationships and believe our clients to be the best critics of our service. The clients below have similarities to your organization, and we encourage you to contact them to learn about their Eide Bailly experiences.

Town of Hillsborough
Contact Jan Cooke, CPA, Finance Director | 650.375.7408 | [email protected] General Fund
Budget $36 million
Size of Finance
Department 4
Scope Audited Financial Statements, Gann AUP
City of East Palo Alto
Contact Tomohito Oku, Finance Director | 650.586.8443 | [email protected] General Fund
Budget $50 million
Size of Finance
Department 10
Scope ACFR-GFOA, Single Audit, State Controller’s Financial Transaction Report, State Controller’s Street Report, Gann Limit AUP
Town of Ross
Contact Christa Johnson, Town Manager | 415.453.1453x107 | [email protected] General Fund
Budget $11 million
Size of Finance
Department 2
Scope Audited Financial Statements, Gann AUP

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Fee Information
City of Monte Sereno
Professional Auditing
Services - Fiscal Years
Ending June 30, 2026
through 2030
All-In Fee Proposal
The fees below reflect a complete, all-in proposal for the audit of the City of Monte Sereno's basic financial statements for the fiscal years ending June 30, 2026 through June 30, 2030, performed in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards.

Our fees assume that Maze & Associates will prepare draft financial statements and supporting schedules and will respond promptly to our requests, and that the engagement will be conducted primarily remotely, consistent with the efficiencies described in the City's request. These are not-to-exceed amounts inclusive of all out-of-pocket costs.

In accordance with the request for proposal for audit services issued by the City of Monte Sereno, the firm referenced below hereby submits the following not-to-exceed cost proposal:

Year Ended June 30th
2026 2027 2028 2029 2030
Basic Report to Be Issued
City Audit - Basic Financial Statements with
Government Auditing Standards Report and
Management Letter
$24,000 $24,720 $25,460 $26,225 $27,010
Additional Report to Be Requested at City Option
Appropriations (GANN) Limit - Agreed-Upon
Procedures
$1,800 $1,855 $1,910 $1,970 $2,030
In addition, please include below an hourly fee quotation and hours proposed for all positions to be assigned to the audit:

Hours Hourly Rate
Partners 12 425
Managers 28 250
Supervisory Staff 40 170
Professional Staff 45 120
Clerical/Support Staff 3 100
Other 0 0
I hereby certify thatthe undersigned is authorized to representthe firmstated above, and empowered to submitthis bid, and ifselected authorized to sign a contract with the City, forthe servicesidentified in the Request For Proposals.

Firm Name: Eide Bailly LLP
Signature:

Printed Name: Ahmad Gharaibeh
Title: Partner
Date: May 21, 2026

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The Right Choice for the City of Monte Sereno
We understand the careful consideration that goes into selecting an independent auditor. Although Eide Bailly is not the City's current auditor, we are far from a stranger to Monte Sereno - we served as your independent auditor through Fiscal 2021 and retain institutional knowledge of the City's funds, history, and financial reporting. A change in auditors can introduce a learning curve and additional demands on management and staff; our prior relationship with the City, combined with the City's modernized systems and Maze's auditsupport role, allows us to re-engage quickly and efficiently with minimal disruption.

The following are some of the many reasons we believe Eide Bailly is the right choice for the City:
• Having served the City through Fiscal 2021, we already understand your fund structure, history, and stakeholders, allowing for a faster, lower-friction transition than a firm new to Monte Sereno. • Our extensive experience serving California cities and special districts extends firmwide and continues to provide additional resources at the City's disposal.
• Inquiries from management regarding technical issues, including phone calls throughout the year, are not billed separately and reflect our commitment to serve you beyond traditional offerings.

Our philosophy is to be proactive in our conversations with management, rather than identify potential issues during the audit engagement.
• Our willingness to be a trusted advisor extends beyond management, as demonstrated by recommendations and discussions on numerous occasions.
• We are responsive in returning email communications and phone calls so that you receive answers to inquiries on a timely basis.
• We will address difficult conversations with management and are direct in our communications. • We will be available to present management and the audit committee with important information that is relevant to decision making.
• Our partners and managers spend extensive time in the field, so any issues identified are resolved in the field and not at the conclusion of the audit.

Eide Bailly makes a commitment to provide you with a level of service and attention that surpasses our competitors, and more importantly, makes you feel as valued as you are.

Exceeding Expectations and Achieving Goals
For us, work goes beyond mere tasks; we view it as an opportunity to assist you in addressing challenges, reaching objectives, and following your passions. After carefully assessing your requirements and investing time in understanding the City, we believe we’re an ideal fit for this opportunity.

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We’re committed to being responsive, reliable advisors and would be glad to answer any questions as you evaluate next steps. We want to make sure you have everything you need to make your decision.

Ahmad Gharaibeh, CPA
Partner
650.223.6103
[email protected]
Nathan Edelman, CPA
Partner
650.223.6115
[email protected]
We Want to Work with You
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STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: PUBLIC HEARINGS
Staff Contact: Diana Perkins, City Manager
Department: City Manager
Title: Adoption of the Fiscal Year 2026/2027 City Manager’s Proposed Budget Recommendation(s):

Staff recommends that the City Council adopt the Fiscal Year 2026/2027 City Manager’s proposed budget.

Background Information:

The proposed budget for Fiscal Year 2026/2027 is attached to this staff report. This includes the anticipated expenditures and revenues for the upcoming fiscal year. The proposed budget is submitted to the City Council for consideration and comments.

The City Council reviewed the proposed budget at the May 19, 2026 City Council meeting. The direction provided at that meeting did not include any changes to the proposed budget.

However, the Council did direct staff to not fill the vacant Administrative Assistant position and to not expend the additional CalPERS Unfunded Pension Liability payment until after the midyear budget review to confirm if sufficient funds are available for these purposes.

Analysis:

General Fund
A comparison of the draft actual financial position for Fiscal Year 2024/2025, adopted budget for Fiscal Year 2025/2026, and proposed budget for Fiscal Year 2026/2027 is summarized in the table below:

Monte Sereno Budget Comparison
Fiscal Year Total Revenue Total
Expenditures and
Transfers Out
Net
FY 2024/2025
Actual (Draft)
$4,729,702 $4,895,118 -$165,416
FY 2025/2026
Adopted Budget
$4,769,928 $5,076,798 -$279,870
FY 2026/2027
Proposed
$5,098,310 $5,293,500 -$195,190

General Fund Expenditure Reductions
The General Fund expenditures (excluding transfer out to other funds) for next year are proposed to decrease from the current year. This is mainly due to the following factors:
 Staff Levels – The Engineering Department position was previously budgeted as a Public Works Director. This position has been hired as a City Engineer and that classification is included in the proposed Fiscal Year 2026/2027 budget. This resulted in savings of about $30,000 in salary and benefits. Additionally, the City Planner position has been reduced to a part-time position, resulting in savings of approximately $80,000 in salaries and benefits.
 General Plan Update Project Complete– Over the past two years, the City has been working with M-Group consultants to update the General Plan. As this project is scheduled to be completed this Summer, there are no expenses that need to be budgeted in Fiscal Year 2026/2027. This is a savings of $87,500 from the last fiscal year.

General Fund Expenditure/Operating Transfer Out Increases Following is a summary of the major General Fund expenditure increases as compared with the current fiscal year budget.
 Police Services Agreement – The current agreement with the Town of Los Gatos for police services sets the annual cost of service increase based on the U.S. Department of Labor, Bureau of Labor Statistics Employment Cost Index for State and Local Government Workers plus 2%. Based on this, the anticipated cost increase for Fiscal Year 2026/2027 is 5%, or $80,000, for a total of $1.53 million.  Flock Camera Annual Cost – The City Council authorized an agreement with Flock Safety Group on January 21, 2025 for the installation and annual maintenance of 19 Automated License Plate Reader (ALPR) cameras and one mobile camera. The annual service cost for these cameras is $60,500.
 Operating Transfers Out – The General Fund currently transfers funds to the Law Enforcement and Public Safety funds to cover the cost of service for the Los Gatos police department. As per the new contract, these costs will increase in Fiscal Year 2026/2027 by 5%. In addition, the General Fund will also be transferring funds to cover a deficit fund balance in both the Loma Serena Street Lighting Fund and the Storm Drain Fund.

Potential General Fund Revenue Increases
The cost for police service has increased significantly over the years and similar increases are likely to occur in the future. The City does receive revenue from an annual parcel tax of $150 per parcel that was established in 1983. As approved, the parcel tax does not allow for an

inflationary adjustment. The $150 parcel tax currently results in approximately $190,000 in revenue to the City. The cost for police services for Fiscal Year 2026/2027 will be approximately $1.53 million. The revenue from this parcel tax accounts for about 12% of the total cost for police services.

As the City Council has discussed at previous Council meetings, and will be discussed at a Special City Council meeting on May 18, 2026, a new parcel tax measure may be necessary to continue to fund the police service costs without the use of reserve funds.

Capital Improvement Projects
In addition to the operating budget, the proposed Fiscal Year 2026/2027 budget includes the following Capital Improvement Projects (CIP):
 Green Stormwater Infrastructure (GSI) Project - As part of the Municipal Regional Stormwater Permit, which governs stormwater regulations for Monte Sereno, the City is required to provide treatment of storm water for approximately 9,000 square feet of are that is currently un-treated (i.e. impervious pavement, building roof area, etc.). Staff is working with a consultant to prepare plans to modify the roof drainage, landscaping, and pavement at City Hall to meet this requirement. Funds of $125,000 was previously set aside for this project and is included in the Fiscal Year 2026/2027 budget.

Monte Sereno was awarded a grant from the 2018 Parks Bond Act in the amount of $180,200. The original grant application was to use these funds towards the community center at the auxiliary building. However, since Council has tabled that project due to the unexpectedly high project costs, staff was able to gain approval to redirect these grant funds for this GSI project. The revenue of this grant has also been included in the Fiscal Year 2026/2027.
 Annual Pavement Management Program- The City receives several sources of revenue that are designated for road improvements. These revenues include the Gas Tax revenue from the State, Vehicle Registration Fees, Santa Clara County Measure B funds, and local construction road impact fees charged as part of building permits. The Fiscal Year 2026/2027 budget includes approximately $415,000 in revenues from these sources. The CIP project for the Pavement Management Program includes an expenditure of this same amount.

Unfunded Pension Liabilities
An Unfunded Accrued Liability (UAL) for the California Public Employees' Retirement System (CalPERS) is the difference between the pension plans obligations and the current value of its assets. This liability is calculated by CalPERS annually based on an actuarially study. The current liability is approximately $650,000. The annual payment for this liability is approximately $73,500. However, these annual payments will increase over time as additional unfunded liabilities will accumulate due to a variety of factors including the performance of the CalPERS investment portfolio, changes in actuarial assumptions, and experience changes.

As the interest rate paid to CalPERS for this liability is higher than the interest rate earned on the City’s investment portfolio, the proposed budget includes the currently required annual payment of $73,500 plus an additional payment of $150,000 towards this liability. This will reduce the future annual payments and help to maintain the relatively low liability Monte Sereno has compared with other jurisdictions.

Status of Reserve Funds
The status of the City’s fund balance is determined with each fiscal year’s audit. The last completed audit was for Fiscal Year 2023/2024 and was accepted by the City Council on August 5, 2025, which showed a fund balance for the General Fund, the City's main operating fund, of $5,982,986. This entire amount is considered "Unassigned", which means it can be used for any governmental purpose determined by the Council and is not otherwise restricted, assigned, committed, or non-spendable. The ending City’s General Fund balance for Fiscal Year 2026/2027 is estimated at $5,342,510.

Fiscal Impact:

The proposed budget includes a deficit of $195,190, which would mean that the City’s reserves would be reduced by this deficit amount. However, based on direction from the City Council to not fill the budgeted vacant staff position and not expend the additional budgeted CalPERS Unfunded Pension Liability until after the mid-year budget review, the actual fiscal impact will be determined in the second half of the year.

Public Noticing:

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

Attachments:

1. Draft Resolution to Adopt Fiscal Year 2026-2027 Budget

RESOLUTION NO. 26-###

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

ADOPTING THE BUDGET FOR THE CITY OF MONTE SERENO FOR FISCAL YEAR 2026-2027 AND MAKING APPROPRIATIONS THEREFORE
WHEREAS, Section 2.02.070(F) of the Monte Sereno Municipal Code requires the City Manager to annually prepare and submit a budget to the City Council and be responsible for its administration; and
WHEREAS, the City Manager submitted and presented to the City Council the Fiscal Year 2026-2027 City Manager’s Proposed Budget (Budget) on May 19, 2026; and
WHEREAS, the City Council conducted a noticed public hearing on the Fiscal Year 2026-2027 City Manager’s Proposed Budget on June 16, 2026; and WHEREAS, the City Council has considered the Fiscal Year 2026-2027 Budget; and
WHEREAS, the City Council has approved the Fiscal Year 2026-2027 Budget, the total amount of operating expenditures for all funds is $5,231,400 and the total amount of the capital budget for all funds is $720,200 for a total Budget of $5,951,600, and

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

Section 1. The Fiscal Year 2026-2027 City Manager’s Proposed Budget is hereby adopted as the Budget for the City of Monte Sereno.

Section 2. The amounts set out as expenditures in the Fiscal Year 2026-2027 Budget for the purposes expressed therein are hereby appropriated.

REGULARLY ADOPTED AND PASSED this 16th day of June 2026, by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Lionel M. Allan, Mayor

ATTESTED:
__________________________
Gloisy Gonzalez-Langarica, City Clerk

City of Monte Sereno
City Manager Proposed Budget
Fiscal Year 2026/2027

General Fund FY24 FY25 FY26 FY27
100 Actual Actual (Draft) Adopted Budget Proposed Budget Revenue
Property Taxes 2,778,341 2,914,433 3,032,432 3,150,000
Sales Taxes 7,683 6,241 8,400 8,500
Franchise fees 470,025 406,850 435,925 492,900
Real Property transfer tax 77,906 126,430 80,700 102,000 License and Permits 714,874 1,011,189 827,100 957,410
Fines and penalties 7,412 0 1400 3,300
Investment earnings 219,724 206,263 190,000 190,000
Intergovernmental /other agencies 7,096 3,148 180,171 180,200 Other revenue 283,339 55,148 14,600 14,000
Total revenue 4,566,400 4,729,702 4,796,928 5,098,310
Expenditures
Non-Departmental (3,104,779) (835,550)
City Council (36,600) (52,000)
Youth Commission (3,100) (3,100)
City Manager (87,500) (332,150)
City Attorney (187,000) (175,000)
Administrative 0 (319,550)
Information Technology 0 (85,450)
City Clerk (7,300) (294,200)
Finance (32,300) (292,100)
Human Resources 0 (25,000)
Planning (35,000) (207,850)
Building Permitting 0 (425,250)
Code Enforcement 0 (97,850)
City Engineer and Public Works (90,850) (426,750)
Public Safety/Emergency Services (15,000) (55,000)
City Hall Operations (29,000) (72,100)
Total Expenditures (3,555,152) (3,995,118) (3,628,429) (3,698,900) Transfers In 0 0 0 0
Transfers Out (305,198) (900,000) (1,448,369) (1,594,600) Net change in Fund Balance 706,050 (165,416) (279,870) (195,190) Beginning Fund Balance 5,276,936 5,982,986 5,817,570 5,537,700 Ending Fund Balance 5,982,986 5,817,570 5,537,700 5,342,510

City of Monte Sereno
City Manager Proposed Budget
Fiscal Year 2026/2027

Law Enforcement Fund FY24 FY25 FY26 FY27
200 Actual Actual (Draft) Adopted Budget Proposed Budget Revenue
Property taxes 188,023 189,337 191,400 191,400
Intragovernmental/other agencies 186,159 194,664 100,000 100,000 Total Revenues 374,182 384,001 291,400 291,400
Expenditures
Non-departmental (82,940) 0 0 0
City Council 0 0 (60,500) 0
Police Services 0 0 (1,558,319) (1,637,100)
Public Safety (1,315,732) (1,235,514) 0
Total Expenditures (1,398,672) (1,235,514) (1,618,819) (1,637,100) Transfers In 822,185 900,000 1,327,419 1,345,700
Transfers Out 0 0 0 0
Net change in Fund Balance (202,305) 48,487 0 0
Beginning Fund Balance 168,464 (33,841) 14,646 14,646
Ending Fund Balance (33,841) 14,646 14,646 14,646

City of Monte Sereno
City Manager Proposed Budget
Fiscal Year 2026/2027

Public Safety Fund FY24 FY25 FY26 FY27
205 Actual Actual (Draft) Adopted Budget Proposed Budget Revenue
Fines and Penalties 2,841
Other revenue 0 262,576 2,100 1,600
Total Revenues 0 265,417 2,100 1,600
Expenditures
General Government 0 (40,982) 0 0
Non-departmental 0 0 (78,500) (70,000)
Public Safety 0 (34,831) (650) (60,900)
Total Expenditures 0 (75,813) (79,150) (130,900)
Transfers In 0 0 77,050 129,300
Transfers Out 0 0 0 0
Net change in Fund Balance 0 189,604 0 0
Beginning Fund Balance 0 0 189,604 189,604
Ending Fund Balance 0 189,604 189,604 189,604

City of Monte Sereno
City Manager Proposed Budget
Fiscal Year 2026/2027

Roadway and Streets Fund FY24 FY25 FY26 FY27
210 Actual Actual (Draft) Adopted Budget Proposed Budget Revenue
Gas Tax 179,589 201,170 316,230 320,200
Investment Earnings 6,870 7,460 0 0
Intragovernmental/other agencies 0 5,648 0 0
Other revenue 0 120,565 87,000 95,000
Total Revenues 186,459 334,843 403,230 415,200
Expenditures
Non-departmental (2,926) (418,567) (12,600) 0
City Engineer and Public Works (175,314) (3,666) 0
Public Safety 0 0 (403,230) (415,200)
Total Ex (178,240) (422,233) (415,830) (415,200)
Operating Transfers In 0 0 12,600 0
Operating Transfer Out (364,756) 0 0 0
Net change in Fund Balance (356,537) (87,390) 0 0
Beginning Fund Balance 502,677 146,140 58,750 58,750
Ending Fund Balance 146,140 58,750 58,750 58,750

City of Monte Sereno
City Manager Proposed Budget
Fiscal Year 2026/2027

Storm Drain Fund FY24 FY25 FY26 FY27
220 Actual Actual (Draft) Adopted Budget Proposed Budget Revenues
License and Permits 0 0 21,200 0
Other revenue 14,166 9,168 0 0
Total Revenues 14,166 9,168 21,200 0
Expenditures
Non-departmental 0 0 (15,000) (14,650)
City Engineer/Public Works (11,940) (11,940) (35,000) (52,500) Total Expenditures (11,940) (11,940) (50,000) (67,150)
Operating Transfers In 0 0 28,800 50,000
Operating Transfers Out (71,750) 0 0 0
Net change in Fund Balance (69,524) (2,772) 0 (17,150)
Beginning Fund Balance 90,524 21,000 18,228 18,228
Ending Fund Balance 21,000 18,228 18,228 1,078

City of Monte Sereno
City Manager Proposed Budget
Fiscal Year 2026/2027

Loma Serena Street Light Fund FY24 FY25 FY26 FY27
230 Actual Actual (Draft) Adopted Budget Proposed Budget Revenues
Property taxes 2,409 2,816 0 750
Total Revenues 2,409 2,816 0 750
Expenditures
Public Safety
City Engineer/Public Works (2,474) (1,581) (2,500) (2,350) Total Expenditures (2,474) (1,581) (2,500) (2,350)
Operating Transfers In 0 0 2,500 69,600
Operating Transfers Out (81,093) 0 0 0
Net change in Fund Balance (81,158) 1,235 0 68,000
Beginning Fund Balance 12,256 (68,902) (67,667) (67,667) Ending Fund Balance (68,902) (67,667) (67,667) 333

STAFF REPORT
Meeting: City Council - Jun 16 2026
Agenda Heading: UNFINISHED BUSINESS
Staff Contact: Diana Perkins, City Manager
Department: City Manager
Title: Consider Adoption of a Resolution to Amend the City of Monte Sereno Regulations and Guidelines for the Conduct of Public Meetings Recommendation(s):

Staff recommends that the City Council consider adoption of a Resolution to Amend the City of Monte Sereno Regulations and Guidelines for the Conduct of Public Meetings Background Information:

The Regulations and Guidelines for the Conduct of Public Meetings policy includes procedures for setting Council meetings and agendas, rules for Addressing Council, selection of Mayor and Vice Mayor, Rules of Procedure and Debate, Minutes, and Disciplinary Procedures. The City of Monte Sereno’s Regulations and Guidelines for the Conduct of Public Meetings was last updated February 6, 2024.

The City Council discussed updates to this Policy at the November 4, 2025 City Council meeting and directed staff to make certain modifications:

Additionally, SB 707 was signed into law and effective on January 1, 2026 and updates are required to the policy to comply with modifications to these Ralph M. Brown Act in Government Code Section 54950.

Analysis:

Council Directed Changes
At the November 4, 2025 City Council meeting, the Council reviewed the current City of Monte Sereno Regulations and Guidelines for the Conduct of Public Meetings and directed staff to make certain changes. Following is a summary of the changes included in the draft resolution:

Council Directed Modification Proposed Revision
Specify that the Mayor shall determine
the scheduling of items for Council
meeting agendas.

Revise the language regarding the City
Section A. Meetings
Item 7 – Agenda

Manager’s authority regarding Council
meeting agenda items.

Revise the annual City Council
reorganization where the Mayor and Vice
Mayor are selected to be done at the first
meeting in December (instead of the
second meeting in December).

C. Mayor and Vice Mayor

1. Appointment of Mayor and Vice Mayor
Revise the voting for Mayor and Vice
Mayor by stating the voting shall occur in
the order of nominations (rather than the
last nominee voted on first).

C. Mayor and Vice Mayor

1. Appointment of Mayor and Vice Mayor
Modifications Required for Compliance with SB707
The revised requirements of the Ralph M Brown Act for open meetings which were included in the SB 707 legislation, which was effective on January 1, 2026, requires modifications to the City of Monte Sereno Regulations and Guidelines for the Conduct of Public Meetings.

Following is a summary of these changes:

SB 707 Requirement Proposed Revision
Hybrid meetings (in person and remote
participation) are required for all public
meetings.

A. Meetings

12. Hybrid Meetings
In the event of a disruption that does not
allow remote participation in a meeting
(i.e. internet outage) where such
disruption is not restored within one hour,
the Council may vote to continue the
meeting or to adjourn the meeting.

A. Meetings

13. Disruption of Remote Participation
During a Council Meeting
The Council may set a policy on the
removal of members of the public who
may disrupt the meeting in a manner
which renders infeasible the orderly
conduct of the meeting. Examples may
include speaking out of turn, exceeding
the allotted speaking time, preventing
others from speaking, and the use of
profanity or personal threats.

B. Addressing Council

6. Removal if Individuals for Disruptive
Behavior