TOWN OF PORTOLA VALLEY
Regular Meeting of the Town Council
Wednesday, November 8, 2023
Closed Session 5:30 P.M.
Regular Session 7:00 P.M.
Jeff Aalfs, Mayor
Sarah Wernikoff, Vice Mayor
Judith Hasko, Councilmember
Mary Hufty, Councilmember
Craig Taylor, Councilmember
HYBRID MEETING
HISTORIC SCHOOLHOUSE- 765 Portola Road, Portola Valley, CA 94028 Remote Public Comments: Meeting participants are encouraged to submit public comments in writing in advance of the meeting. Please submit your comments using this online form by 1:00 PM on the day of the meeting. Time permitting, your correspondence will be uploaded to the website. All received questions will be forwarded to Council, Commission, or Committee members for consideration during the meeting and included in the public record. Additionally, technology permitting, the public body will take questions using the Raise Hand button for those who attend the meeting online or by phone. Phone callers may provide comments by pressing *9 on their phone to "raise your hand" and *6 to mute/unmute themselves. The meeting Chair will call on people to speak by the phone number calling in. Remote participation is provided as a supplemental way to provide public comment, but this method does not always work. The public is encouraged to attend in person to ensure full participation.
Assistance for People with Disabilities: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (650) 851-1700 or by email at [email protected]. Notification 48 hours prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting.
1. CALL TO ORDER- CLOSED SESSION
2. ORAL COMMUNICATIONS
Persons wishing to address the Town Council on any subject may do so now. Please note, however, that the Council is not able to undertake extended discussion or action tonight on items not on the agenda. Each speaker’s time is limited to three minutes.
3. CLOSED SESSION
a. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of California Government Code section 54956.9: PublicSafety4PVNow, Inc., a Delaware corporation Govt. Code § 54956.9(d)(2): “[a] point has been reached where, in the opinion of the legislative body of the local agency on the advice of its legal counsel, based on existing
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Town of Portola Valley – Council Agenda
November 8, 2023
facts and circumstances, there is a significant exposure to litigation against the local agency.
b. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Govt. Code section 54957) Interim Town Attorney Catherine Engberg
4. CALL TO ORDER- REGULAR SESSION
5. ORAL COMMUNICATIONS
Persons wishing to address the Town Council on any subject may do so now. Please note, however, that the Council is not able to undertake extended discussion or action tonight on items not on the agenda. Each speaker’s time is limited to three minutes.
6. REPORT OUT OF CLOSED SESSION
7. TOWN MANAGER REPORT
There are no written materials, and the Town Council does not take action under this agenda item.
8. CONSENT AGENDA
a. Approval of Minutes - Regular Meeting Minutes of October 25, 2023 b. Approval of Warrant List- 11/08/23
c. Appointments to Geologic Safety and Trails and Paths Committee’ to fill unscheduled vacancies
9. REGULAR AGENDA
a. Town Manager Update and State of the Town
b. Review and discuss the (Draft) Affordable Housing Fund Policy Colleagues Memo
10. COUNCIL LIAISON COMMITTEE AND REGIONAL AGENCIES REPORTS Oral and written reports arising out of liaison appointments to both in-town and regional committees and initiatives. The Town Council does not take action under this agenda item.
11. ADJOURNMENT
The next Regular Town Council meeting will be held on December 13, 2023, at 7:00 PM ************************************************************************************************************** *** Land Acknowledgement:
The Town of Portola Valley acknowledges the colonial history of this land we dwell upon the unceded territory of the Ramaytush (rah-my-toosh) Ohlone, Tamien Nation, and Muwekma (mahWEK-mah) Ohlone, who endured a human and cultural genocide that included removal from their lands and their sacred relationship to the land. Portola Valley recognizes that we profit from the commodification of land seized from indigenous peoples and now bear the ecological consequences. We seek to understand the impact of these legacies on all beings and to find ways to make repair.
TOWN OF PORTOLA VALLEY
Regular Meeting of the Town Council
Wednesday, October 25, 2023
7:00 P.M.
Jeff Aalfs, Mayor
Sarah Wernikoff, Vice Mayor
Judith Hasko, Councilmember
Mary Hufty, Councilmember
Craig Taylor, Councilmember
1. CALL TO ORDER 7:32 PM
Present: Mayor Aalfs, Vice Mayor Wernikoff, and Councilmembers Hufty, Hasko, and Taylor
2. ORAL COMMUNICATIONS
- No public comment
3. CONSENT AGENDA
a. Approval of Minutes- Regular Meeting Minutes of October 11, 2023 b. Approval of Warrant List- 10/25/2023
- Mayor Aalfs requested a motion to approve item 3 a. and 3 b. - Councilmember Taylor made a motion, seconded by Vice Mayor Wernikoff, to approve item 3 a. and 3 b. on the consent agenda. The motion passed by the following vote:
- Ayes: Mayor Aalfs, Vice Mayor Wernikoff, Councilmembers Hufty, Hasko, and Taylor - Nays: None
c. Approval of Updated Electronic Communications Policy - Due to technical difficulties with Zoom, Council decided to table item 3 c. to a future meeting
4. REGULAR AGENDA-PUBLIC HEARING
a. Update on Housing Element Status
- Presentation given by Interim Planning and Building Director, Jon Biggs, which included a PowerPoint presentation. Presentation will be posted to the website since Zoom is not functioning properly.
- HCD letter received in July 2023 with a list of modifications. Several meetings with HCD were cancelled and rescheduled, first meeting was on 10/14/2023. Dates were pushed out as far as HCD was comfortable with- wrapping up in 2028. On track to update housing element with appropriate HCD language, including timeframes. The goal is to get this in front of the council by January 2024. HCD wants to see RFP going out in 2027. About 70% complete by consultantUrban Planning Partners. - The zoning update project currently in the works- bring to council in tandem with housing element update, by mid-spring 2024. About 70% complete by consultant- Lisa Wise. - Four projected meetings between Planning Commission and Council in December and January to review, discuss and potentially approve the housing element and zoning update.
Minutes of the October 25, 2023, Regular Town Council Meeting
5. COUNCIL LIAISON COMMITTEE AND REGIONAL AGENCIES REPORTS Oral and written reports arising out of liaison appointments to both in-town and regional committees and initiatives. The Town Council does not take action under this agenda item.
6. TOWN MANAGER REPORT
There are no written materials, and the Town Council does not take action under this agenda item.
7. ADJOURNMENT
At 8:30 PM, the Mayor adjourned the October 25, 2023 meeting. The next Regular Town Council meeting will be held on November 8, 2023, at 7:00 p.m.
apachreg Town of Portola Valley mmagahiz 11/02/2023 13:54 Page 1 Check Register
Check Vendor Vendor Name Check Check BW CheckNumber Number Amount Date TypeChecks for Cash Account: 910-11011-000 3620 3 A-A LOCK & ALARM INC 149.61 11/08/233621 44 BANK OF AMERICA 11,590.42 11/08/23 EFTPS3622 78 CALIFORNIA WATER SERVICE CO 28,520.57 11/08/233623 121 SCA OF CA, LLC 5,235.03 11/08/233624 124 COMCAST 204.89 11/08/233625 176 EXCEL LD 23.54 11/08/233626 179 FEDEX 231.60 11/08/233627 211 HAYWARD LUMBER CO 601.88 11/08/233628 217 HUMAN INVESTMENT PROJECT 2,081.40 11/08/233629 218 MISSIONSQUARE RETIREMENT 6,708.15 11/08/233630 234 J. W. ENTERPRISES 889.76 11/08/233631 259 JOINT VENTURE S.V. NETWORK 693.80 11/08/233632 274 KPMG LLP 16,330.00 11/08/233633 275 KRUPKA CONSULTING 875.00 11/08/233634 278 LAMPHIER GREGORY 19,590.00 11/08/233635 324 MIRANDAS LANDSCAPE 4,205.47 11/08/233636 337 O. NELSON & SON INC. 1,600.00 11/08/233637 356 PENINSULA CONFLICT RESOLUTION 1,914.89 11/08/233638 361 PENINSULA VOLUNTEERS INC. 3,468.68 11/08/233639 364 PERS HEALTH 14,876.39 11/08/233640 367 PG&E 1,740.16 11/08/23 EFTPS3641 403 RON RAMIES AUTOMOTIVE INC. 1,444.08 11/08/233642 407 SABER ROOFING INC 1,000.00 11/08/233643 445 STANDARD INSURANCE CO. 487.81 11/08/233644 456 SUSTAINABLE SILICON VALLEY 693.80 11/08/233645 457 SUSTAINABLE SM COUNTY 1,734.50 11/08/233646 486 VANCE BROWN INC. 5,000.00 11/08/233647 489 VERIZON WIRELESS 1,339.34 11/08/23 EFTPS3648 504 WOODSIDE & PORTOLA PRIVATE 1,650.00 11/08/233649 505 WOODSIDE FIRE PROTECTION DISTR 1,051.09 11/08/233650 537 HOUSING ENDOWM. AND REG. TRUST 944.26 11/08/233651 712 BAYSIDE EQUIPMENT COMPANY 500.00 11/08/233652 730 URBAN PLANNING PARTNERS INC 3,994.00 11/08/233653 847 LISA WISE CONSULTING 4,241.25 11/08/233654 860 STEPFORD 600.00 11/08/233655 911 CIVICPLUS LLC 1,412.25 11/08/233656 949 PORTER CAPITAL CORPORATION 3,564.00 11/08/233657 1016 SHUTE, MIHALY & WEINBERGER LLP 33,853.39 11/08/233658 1060 PHILLIP A. MURRAY CONSTRUCTION 1,000.00 11/08/233659 1061 LASKY TRADE PRINTING 735.00 11/08/233660 1062 BAY CITIES ROOFING 1,000.00 11/08/233661 1063 LINDY ROOFING 1,000.00 11/08/233662 1064 HDL COREN & CONE 1,412.50 11/08/233663 1065 WALTER EVANS 3,102.06 11/08/233664 1066 SHARIF ETMAN 359.44 11/08/23
apachreg Town of Portola Valley mmagahiz 11/02/2023 13:54 Page 2 Check Register
Check Vendor Vendor Name Check Check BW CheckNumber Number Amount Date Type 3665 1067 KRISCH & COMPANY 3,992.07 11/08/23Check totals: 182,972.16ACH totals:EFTPS totals: 14,669.92Wire transfer totals:Payment Manager totals:GRAND TOTALS 197,642.08Check totals: 182,972.16ACH totals:EFTPS totals: 14,669.92Wire transfer totals:Payment Manager totals:GRAND TOTALS 197,642.08
.
apapdinv2 mmagahiz Town of Portola Valley Page 1
13:59 11/02/23 Paid Invoices by Date
From: 11/08/2023 to 11/08/2023
Check Check Special Information Net Check Total Invoice Number Date Number Amount Invoices
Paid
Vendor: 3 A-A LOCK & ALARM INC
11/08/23 3620 Stamp Key ad Commercial Keys 149.61 149.61 9282 Vendor: 44 BANK OF AMERICA
3621 September Statement 11,590.42 11,590.42 1388-SEPT23 Vendor: 78 CALIFORNIA WATER SERVICE CO
3622 Water Service 08/11/23 - 09/12/23 28,520.57 18,268.16 AUGUST-2023 Water Service 09/13/23 - 10/11/23 10,252.41 SEPT-2023
Vendor: 121 SCA OF CA, LLC
3623 September Qrtly Litter/Street Clean 5,235.03 5,235.03 107142CS Vendor: 124 COMCAST
3624 WIFI-10.21.2023-11.20.2023 204.89 204.89 1945-OCT23 Vendor: 176 EXCEL LD
3625 October Telephone LD Services 23.54 23.54 1197224658 Vendor: 179 FEDEX
3626 Expedited Delivery Service, September 231.60 231.60 8-292-15334 Vendor: 211 HAYWARD LUMBER CO
3627 Picnic table repairs 601.88 601.88 249157
Vendor: 217 HUMAN INVESTMENT PROJECT
3628 FY2023- 2024 Annual Contribution 2,081.40 2,081.40 FY2023-2024 Vendor: 218 MISSIONSQUARE RETIREMENT
3629 Deferred Comp - October 2023 6,708.15 6,708.15 OCTOBER-2023 Vendor: 234 J. W. ENTERPRISES
3630 Handicap Unit Rental & Services 889.76 153.44 253433 Handicap Unit Rental & Services 189.44 253434Handicap Unit Rental & Services 231.44 254142Handicap Unit Rental & Services 315.44 254141 Vendor: 259 JOINT VENTURE S.V. NETWORK
3631 FY2023- 2024 Annual Contribution 693.80 693.80 FY2023-2024 Vendor: 274 KPMG LLP
3632 Progress Billing: DEO Assistance, 8/2022 - 04/2023 16,330.00 16,330.00 8004816895 Vendor: 275 KRUPKA CONSULTING
.
apapdinv2 mmagahiz Town of Portola Valley Page 2
13:59 11/02/23 Paid Invoices by Date
From: 11/08/2023 to 11/08/2023
Check Check Special Information Net Check Total Invoice NumberDate Number Amount Invoices Paid
11/08/23 3633 Speed Surveys & Flashing Beacons 875.00 875.00 1377 Vendor: 278 LAMPHIER GREGORY
3634 Planning Consultant 12/10/22 - 10/13/23 Stanford Wedge 19,590.00 19,590.00 2023-1466 Vendor: 324 MIRANDAS LANDSCAPE
3635 Mechanical Sys Repair Maintenance 4,205.47 521.47 3449 September Landscape Maintenance Services 3,684.00 3450
Vendor: 337 O. NELSON & SON INC.
3636 Landscape mow at Springdown Field 8/25/23 1,600.00 1,600.00 260 Vendor: 356 PENINSULA CONFLICT RESOLUTION
3637 FY2023- 2024 Annual Contribution 1,914.89 1,914.89 FY2023-2024 Vendor: 361 PENINSULA VOLUNTEERS INC.
3638 FY2023- 2024 Annual Contribution 3,468.68 3,468.68 FY2023-2024 Vendor: 364 PERS HEALTH
3639 November Health 14,876.39 14,876.39 100000017324659 Vendor: 367 PG&E
3640 September & October Statements 1,740.16 1,740.16 OCT-2023 Vendor: 403 RON RAMIES AUTOMOTIVE INC.
3641 September Fuel Statement 1,444.08 470.85 G20230930-4 Lawn Mower Service & Repair 973.23 75761
Vendor: 407 SABER ROOFING INC
3642 Deposit Refund, 6 Horseshoe 1,000.00 1,000.00 BLDR0125-2023 Vendor: 445 STANDARD INSURANCE CO.
3643 LTD/Life Premium 487.81 487.81 2023-OCT
Vendor: 456 SUSTAINABLE SILICON VALLEY
3644 FY 2023- 2024 Annual Contribution 693.80 693.80 1839 Vendor: 457 SUSTAINABLE SM COUNTY
3645 FY 2023-2024 Annual Contribution 1,734.50 1,734.50 2023-132 Vendor: 486 VANCE BROWN INC.
3646 Refund Deposit, 135 Portola 5,000.00 5,000.00 BLDC0001-2022 Vendor: 489 VERIZON WIRELESS
.
apapdinv2 mmagahiz Town of Portola Valley Page 3
13:59 11/02/23 Paid Invoices by Date
From: 11/08/2023 to 11/08/2023
Check Check Special Information Net Check Total Invoice NumberDate Number Amount Invoices Paid
11/08/23 3647 September Cellular 1,339.34 1,339.34 9945299297 Vendor: 504 WOODSIDE & PORTOLA PRIVATE
3648 PV Smr Concert, Town Picnic, Traffic Cntrl Clean-Up 1,650.00 1,650.00 190970 Vendor: 505 WOODSIDE FIRE PROTECTION DISTR
3649 09/01/23-09/30/23 Fire Mitigation Crew Support 1,051.09 1,051.09 WFPD CREW-1021 Vendor: 537 HOUSING ENDOWM. AND REG. TRUST
3650 FY2023- 2024 Annual Contribution 944.26 944.26 793 Vendor: 712 BAYSIDE EQUIPMENT COMPANY
3651 Annual Service Maintenance on Back-up Generator 500.00 500.00 83126 Vendor: 730 URBAN PLANNING PARTNERS INC
3652 PV Housing Element Update- August 3,994.00 3,180.00 21029-230831 PV Housing Element Update- July Enviromental Collaborative 814.00 22008-230731 Vendor: 847 LISA WISE CONSULTING
3653 Professional Services: September 2023 4,241.25 4,241.25 4668 Vendor: 860 STEPFORD
3654 Onsite & Remote Field Services - October 600.00 600.00 2306542 Vendor: 911 CIVICPLUS LLC
3655 Premium Bundle & OrdLink Subscription 1,412.25 1,412.25 269879 Vendor: 949 PORTER CAPITAL CORPORATION
3656 Temp Service, Michelle Magahiz 10/02/23-10/08/23 3,564.00 1,584.00 7299 Temp Service, Michelle Magahiz 10/16/23-10/22/23 1,980.00 7350 Vendor: 1016 SHUTE, MIHALY & WEINBERGER LLP
3657 September Legal Service 33,853.39 33,853.39 SEPT-23-SMW Vendor: 1060 PHILLIP A. MURRAY CONSTRUCTION
3658 Deposit Refund, 19 Redberry 1,000.00 1,000.00 BLDR0054-2021 Vendor: 1061 LASKY TRADE PRINTING
3659 Mailers 735.00 735.00 59545
Vendor: 1062 BAY CITIES ROOFING
3660 Deposit Refund, 15 Buckeye 1,000.00 1,000.00 BLDR0108-2023 Vendor: 1063 LINDY ROOFING
.
apapdinv2 mmagahiz Town of Portola Valley Page 4
13:59 11/02/23 Paid Invoices by Date
From: 11/08/2023 to 11/08/2023
Check Check Special Information Net Check Total Invoice NumberDate Number Amount Invoices Paid
11/08/23 3661 Deposit Refund, 43 Los Charros 1,000.00 1,000.00 BLDR0162-2023 Vendor: 1064 HDL COREN & CONE
3662 Contract Svcs Property Tax - Q2 2023 1,412.50 1,412.50 SIN032949 Vendor: 1065 WALTER EVANS
3663 Deposit Refund, 380 Portola 3,102.06 3,102.06 BLDR0165-2022 Vendor: 1066 SHARIF ETMAN
3664 League of Cities Conference Reimbursment 359.44 359.44 10302023 Vendor: 1067 KRISCH & COMPANY
3665 September Advisory Services 3,992.07 3,992.07 51250 Check Date Totals 197,642.08
Grand Total 197,642.08
TOWN OF PORTOLA VALLEY
Warrant Disbursement Journal
November 8, 2023
Claims totaling $197,642.08 having been duly examined by me and found to be correct are hereby approved and verified by me as due bills against the Town of Portola Valley.
Date _____________________________ ________________________________ Sharif Etman, Town Manager
Motion having been duly made and seconded, the above claims are hereby approved and allowed for payment.
Signed and sealed this (Date) _____________________
_______________________________ _________________________________ Jennifer Torres, Town Clerk Mayor
______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Jennifer Torres, Town Clerk
DATE: November 8, 2023
RE: Appointment to Geologic Safety Committee
RECOMMENDATION:
Town Council appointment of a new member to the Geologic Safety Committee to fill an unscheduled vacancy.
BACKGROUND:
Only one member application was received and is included as Attachment 1. The appointee will complete the term of appointment, concluding at the end of 2024.
FISCAL IMPACT:
None
ATTACHMENT:
Member Application
Approved by: Sharif Etman, Town Manager
TOWN OF PORTOLA VALLEY
STAFF REPORT
TOWN OF PORTOLA VALLEY
ATTACHMENT 1 Page 13 of 45
ATTACHMENT 1 Page 14 of 45
______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Jennifer Torres, Town Clerk
DATE: November 8, 2023
RE: Appointment to Trails and Paths Committee
RECOMMENDATION:
Town Council appointment of a new member to the Trails and Paths Committee to fill an unscheduled vacancy.
BACKGROUND:
Only one member application was received and is included as Attachment 1. The appointee will complete the term of appointment, concluding at the end of 2024.
FISCAL IMPACT:
None
ATTACHMENT:
Member Application
Approved by: Sharif Etman, Town Manager
TOWN OF PORTOLA VALLEY
STAFF REPORT
TOWN OF PORTOLA VALLEY
ATTACHMENT 1 Page 16 of 45
ATTACHMENT 1 Page 17 of 45
______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Sharif Etman, Town Manager
DATE: November 8th, 2023
RE: Town Manager Update and State of the Town
RECOMMENDATION
Staff recommend Town Council review and discuss the following updates from the Town Manager and approve the authority to spend $135,000 to engage Krisch & Company to assist in financial matters until June 2024.
BACKGROUND
It has been approximately 60 days since the new Town Manager began his role on August 30th, 2023. This report is an update from the Town Manager regarding the state of the town and other current business pertinent to the Town Council and community.
The Town Manager, with the Town Council’s support, immediately looked to address the turnover of staff and help address the financial matters that are currently behind in multiple areas. As set out below, the Town Manager has specific proposals on how to address these matters, including the use of an outside financial consultant to expedite progress.
DISCUSSION
Staffing
The Town has experienced unprecedented turnover (nearly 70%) during the calendar year of 2023. The departure of the Town Manager, Assistant Town Manager, Town Attorney, and Town Building and Planning Director, for example, has significantly impacted town operations and continuity of leadership.
Other positions such as the Assistant to the Town Manager, Administrative Operations, Associate Planner, and Development Review Technician also have significant impact on
TOWN OF PORTOLA VALLEY
STAFF REPORT
TOWN OF PORTOLA VALLEY
town operations. There is also the loss of connection, institutional knowledge, and the ability to provide services to the public.
Staff turnover and the continued needs of the community and our residents in turn have caused stress for the remaining staff as they continue to serve the town.
The Town Manager immediately hired an Interim Building and Planning Director, Jon Biggs, to help lead the transition of the Building and Planning Department. Jon Biggs is a retired annuitant – he can only serve as interim for a set number of hours and a certain period, according to CalPERS guidelines. It is anticipated Jon will serve until approximately late February, allowing time for the hiring of a permanent Building and Planning Director.
We have hired an intern for the front counter, and also filled the permanent Administrative Operations (front counter) position which was recently vacated. A (permanent) second Senior Accountant and a temporary, contracted (through an employment agency) Finance Technician has also been added.
As of November 1st, 2023, the Town currently has 5 vacant positions:
• Director of Building and Planning
• Senior Management Analyst
• Associate Planner
• Development Review Technician II
• Maintenance Worker I/II
While working to restore stability to Town Hall, the Town Manager and executive team are currently reviewing their departments’ roles and responsibilities and the staff needed to fulfill those needs.
The current mantra of “Reset – Refocus – Restructure” is a theme that was introduced by the Town Manager and embraced by the executive team and supported by the Town Council to:
• Evaluate all positions (current and filled)
• Evaluate consultant use based on need and cost
• Restore Town Hall (front desk) hours
• Support ongoing Town Council efforts to assess best operations for committees (Brown Act vs. Non-Brown Act committees)
Based on the Town Manager’s observations, with the turnover of staff and the lasting effects of the COVID-19 pandemic, there have been losses of institutional knowledge, disruptions to workflow, and interruptions in service. There has also been a loss of comradery and connection with staff and the community.
As part of the “Reset – Refocus – Restructure” mantra, the Town Manager and Staff will participate in blocks of Staff Development and Training to allow staff to get caught up and trained in multiple areas with the goal to provide even better services to the community.
This endeavor is being coined “P.V. Refresh.”
Town Manager Update and State of the Town November 8, 2023 The P.V. Refresh will occur during the weeks of November 13-22, 2023. Blocks of time from 10 a.m. to 3 p.m. will be set aside for all staff, in person meetings. Examples of the modules being prepared are:
• Meet and introduce each other and individual council members • Create a Statement of Values
• Emergency Preparedness and EOC training
• Train on the business license, permitting, and finance software systems
• Train on Ring Central, Teams, and Zoom
• Cross-train in multiple areas of service delivery
• Complete State mandated and other critical trainings
• Clean and purge items from Town Hall
On December 4
th or 5th (date and time TBD) Town Hall staff will invite the community to meet and greet all staff. More information will be forthcoming regarding this event.
Following the P.V. Refresh, the new Town Hall hours will be Monday through every other Friday 8 a.m. to 4 p.m. (excluding lunch). Currently Town Hall hours are limited to Monday through Thursday 8 a.m. to 12 p.m. only.
Focus on Town Finances
The Town Manager focused on understanding the status of current Town finances. He had conversations with our current Director of Finance and staff and conducted an internal review and engaged a contractor to perform an external review of our financial situation.
The Town Manager has acquired the services of Krisch & Company, an accounting and governmental advisory practice with expertise in municipal finance, to review, evaluate, and provide recommendations for the Finance Department functions and operations. They were asked to recommend necessary resources and help determine appropriate timelines for the completion of our year-end close and outstanding audits.
Krisch & Company met onsite with staff in late September and reviewed outstanding items, discussed staffing levels, workload, internal departmental processes, internal controls among other fiscal and audit items. A report of the evaluation was presented to the Town Manager on November 2nd, 2023. The document entitled Town of Portola Valley Fiscal Review is attached to this report.
As identified by our current Director of Finance, our internal review, and the analysis by Krisch & Company – the Finance Department and its operations are significantly behind in multiple areas.
In recent years, the Finance Department has experienced staff turnover and staff shortages, new software implementation(s), and the impacts of the COVID-19 pandemic, these challenges have created delays in our financial reporting, completion of annual audits, and have impacted other important operations.
The attached Krisch & Company report outlines the areas that need attention. The report is broken out into:
• Areas that need immediate attention
• Areas to be addressed within three months
• Areas that should be addressed within the next year
• Up to date items or items to review at a later date
It is clear from the report and our internal review that certain immediate actions are needed.
The Town Manager is requesting authority to engage Krisch & Company to work with existing staff to complete urgent items and work through the backlog of finance tasks to prepare year-end close and the subsequent audits. It is estimated this work will require 20-30 hours a week over the next six months.
The Town Manager will work with Krisch & Company to define specific finance delivery dates and timelines for the work to be completed. It is anticipated that the specific timelines will be shared with the Town Council in February, and the contract will be reviewed bimonthly as to progress against these dates.
Because there will be anticipated changes to the leadership in the Finance Department, the Town is also making plans to bring on an Interim Finance Director. The Town Manager will hire an Interim Director of Finance who will lead the Finance Department and help coordinate the Krisch & Company workload. At a later date and within existing resources and funding, the Town Manager will recruit a permanent Finance Technician, so as not rely on a contracted employee from an outside employment agency.
The Town Manager and staff are confident that the plan outlined above will enable the town to jumpstart its ability to get caught up and in compliance as needed. It is important to note that it is anticipated to take one and half to two years to become fully compliant, audited and up to date. This is based on multiple factors including the current backlog, and scheduling of three fiscal year audits which require five to six weeks each of review (preliminary and final audits) by our contracted audit firm.
Appropriations/GANN Limit
Additional review is necessary to establish the Town’s Appropriation Limit for FY 2023- 24, Krisch & Company will be performing a complete recalculation of the town’s appropriations going back to 1978 to determine accuracy of prior year limits. This review is expected to be completed in time for the December 13th Town Council meeting.
Council Action:
Receive the Town Manager report and grant the authority to spend up to $135,000 for Krisch & Company.
Town Manager Update and State of the Town November 8, 2023
FISCAL IMPACT
There are sufficient funds available as a result of open staff vacancies to cover the cost of hiring an Interim Finance Director. The estimated cost of Krisch & Company for six months is $135,000. This cost is currently not budgeted and will be funded by our reserves.
ATTACHMENT
1. Krisch & Company Town of Portola Valley Fiscal Review
3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 T 925.930.0902 www.krischcpas.com To: Sharif Etman, Town of Portola Valley Town Manager
From: Heather Rowden, Advisory Services Manager
Date: November 2, 2023
Subject: Town of Portola Valley Fiscal Review
Scope of Work
On September 24, 2023, Krisch & Company (Krisch) was contracted by the Town of Portola Valley (the Town) to perform a review of current financial processes and procedures as compared to industry best practices and standard reporting requirements. The scope of work covered general accounting practices for accounts receivable, accounts payable, payroll, general ledger maintenance, and fiscal reporting. This was a high-level review covering standard practices as identified through interviews with the Finance Director, Assistant Town Manager, and Town Manager. The Town’s official Policies and Procedures document was also reviewed. In some cases, general advice for correction is provided. Additional review is required for specific Items identified in the report and all recommendations should be considered as a whole with other Town priorities.
Standards
Krisch conducted this engagement in accordance with the Statements on Standards for Consulting Services as issued by the American Institute of Certified Public Accountants and the terms stated in our engagement letter dated September 24, 2023. The work performed is only for the use and benefit of the Town management.
Because the scope of work listed above does not constitute an examination or audit in accordance with generally accepted government auditing standards, we did not express an opinion on the results of our work, but instead have provided this report with our findings and recommendations. We had no obligation to perform any procedures beyond those listed in the Scope of Work. If, however, as a result of the procedures or through other means, matters had come to our attention, we would have disclosed those matters to the Town. Such disclosures, if any, may not include all matters which might have come to our attention had we performed additional procedures or an examination.
Summary of Findings
The Town’s financial processes and procedures were reviewed for compliance with best practices and suggestions for updates, when applicable, were discussed with the Town Manager and Town Attorney. A summary of tasks reviewed, as well as the identified urgency, is included in the following table. Tasks are color coded by priority.
Task priorities are categorized as follows:
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3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 T 925.930.0902 www.krischcpas.com Red: Needs immediate attention
Orange: Should be addressed in the next 3 months
Yellow: Should be addressed in the next year
Green: Up to date or a review at a later date
In all categories, areas of improvement, including potential ways to address any deficiencies, were discussed with staff.
Urgency Specific Areas
Needs Immediate
Attention
Cash Handling Procedures: A review of current processes for deposits and revenue recording was completed. It is recommended that a formal, townwide procedure is implemented as soon as possible.
Bank Reconciliations: The Town is several months behind on bank reconciliations. Per best practice, reconciliations should be completed the following month. Procedures should be put in place for timely reconciliations moving forward and past reconciliations should be completed as soon as possible.
System Reconciliations: A review of software that interacts with the accounting software was completed. It is recommended that a reconciliation process be implemented as soon as possible.
Software Implementation: The Town implemented a new accounting software in 2020. Residual setup issues remain and should be addressed as soon as possible.
Payroll Journal Information: A review of the current payroll process was completed. Several recommendations to streamline the process and make it less manual were made.
Benefit Reconciliations: Benefit reconciliations are several months behind.
Procedures should be put in place for timely reconciliations moving forward and past reconciliations should be completed as soon as possible.
Payroll Changes Entry: A review of the current payroll process was completed.
It is recommended that a Human Resources Technician (or similar) be hired to provide a separation of duties in the payroll process.
Annual Audit Reports: The Town is several years behind on production of audited financials. These will not be able to be completed until other tasks identified by this review are addressed.
SCO Annual Streets and Roads Reports: While most State Controllers’ Office reports have been filed, this report is outstanding. The report should be filed as soon as possible, however other tasks addressed by this review will be needed prior to filing.
Treasurer's Report to Council: A review of the Towns investments and Investment Policy was completed. It is recommended that the Town issue a Request for Proposal for Investment Advisory Services and hire an Investment Manager familiar with municipal government regulations and reporting requirements.
Budget to Actual Reports: A review of the Town’s budgeting and reporting process was completed. These reports are not currently being provided to City Management or the public. It is recommended that these reports be compiled as soon as possible to ensure the Town stays on budget and the public is aware of revenue and expense trends.
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3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 T 925.930.0902 www.krischcpas.com Compliance with Current Accounting Standards: A review of the Town’s accounting policies and practices was completed. In addition to suggesting that the Town’s Financial Policies are updated to reflect current practices, additional areas of improvement were discussed with staff. It is recommended that the Town issue Requests for Proposals for several Governmental Accounting Standards Board (GASB) requirements was suggested to ensure compliance as audits are completed.
SB 1186 Fee Reporting and Remittance: A review of the Town’s compliance with California State SB1186 fee reporting and remittance was completed. The Town is behind in reporting these fees, which are paid with business license taxes. Reporting should be brought up to date as soon as possible.
Address in the
Next 3 months
Check Run Procedures: A review of the Town’s current check run process was completed. Recommendations for making the process more efficient were made, including implementation of a new module available in the accounting system.
Appropriations Limit: A review of the Town’s Appropriations (Gann) Limit process was completed. Krisch has been contracted to complete a full recalculation of the limit and assess options should the Town exceed the Appropriations Limit at any time in the future.
Asset Management: A review of the Town’s current fixed asset tracking and reporting was completed. Areas of improvement were discussed with staff, and a recommendation to issue a Request for Proposal for a physical inventory in the next year was provided.
Contracting Procedures: A review of the Town’s contracting and contract recording processes were completed. Staff are in the process of implementing a contracting software and the City Attorney is currently reviewing the Town’s template contract.
Journal Entries: A review of the Town’s accounting policies and practices was completed. It is recommended that formal policies are implemented and entries are reviewed an posted on a regular basis.
General Ledger: A review of the Town’s accounting policies and practices was completed. As part of the software implementation review mentioned above, balance sheet accounts should be reconciled to ensure carryover balances are cleared.
Timesheet Procedures: A review of the current payroll process was completed.
It is recommended that the new timesheet module available as part of the accounting system is implemented.
Grant Tracking: A review of the Town’s accounting policies and practices was completed. It is recommended that a review of reporting requirements for any grants is completed.
Address in the
Next Year
Business License Taxes: A review of the Town’s accounting policies and practices, including updating, billing, and recording business license taxes was completed. It is recommended that formal policies be implemented in the next year.
Budget Procedures: A review of the budgeting process was completed. It is recommended that staff be more involved in the beginning of the process to ensure mandated and required core services are included in the budget prior to additional projects being requested.
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3478 Buskirk Avenue, Suite 215 Pleasant Hill, CA 94523 T 925.930.0902 www.krischcpas.com Financial Policies Procedures: A review of the Town’s financial policies and practices was completed. This document should be reviewed and updated to reflect current processes and best practices.
CalPERS Reporting: A review of the current payroll process was completed. A formal procedure should be implemented for withholding and remittance of both employee and employer contributions.
Federal Labor Standards Act Compliance: A review of the current payroll process was completed. It is recommended that the Town implement the new timesheet module to make tracking FLSA compliance less manual.
SCO Financial Transactions Reports: The process for tracking and filing State Controllers’ Office reports was completed. While the majority of the reports have been filed, areas of improvement were discussed with staff.
Review at a Later
Date
Master Fee Schedule: The process for updating the Master Fee Schedule was reviewed. While these fees are updated by the change in the Consumer Price Index annually, it is suggested that a fee study be done in the future to ensure the Town is recovering all applicable costs.
Leases: A review of the Town’s billing processes was completed. There are several property leases that are billed annually. No deficiencies were noted.
SCO Government Compensation Report: A review of State Controllers’ Office reporting requirements was completed. Most reports have been filed but may need to be updated once audits are completed.
Up to date Continuing Disclosure Obligations for Debt: A review of any potential debt service reporting obligations was completed. The Town has no debt and, therefore, no reporting obligations.
Taxes -- Remittance and Filings: A review of the current payroll process was completed. All Federal and State tax filings are up to date.
SCO Single Audit Report: A review of State Controllers’ Office reporting requirements was completed. The Town has not been required to complete a Single Audit (required if Federal funding in excess of $750,000 is expended in a fiscal year) for several years and is up to date on reporting this to the State.
ARPA Report to US Treasury: A review of any potential Federal reporting was completed. The only noted report was the American Rescue Plan Act reporting to the US Treasury. This report has been completed.
CA Strong Motion Instrumentation Program (SMIP) Returns and Remittance: A review of any potential State reporting was completed. The Town is up to date on remitting and reporting CA Strong Motion Instrumentation Program fees assessed through the permitting process.
CA Building Standards Administration Special Revolving Fund (BSASRF) Returns and Remittance: A review of any potential State reporting was completed. The Town is up to date on remitting and reporting CA Building Standards Administration Special Revolving Fund fees assessed through the permitting process.
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______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Judith Hasko, Esq. and Mary Hufty, MD
DATE: November 8, 2023
RE: Affordable Housing Fund Policy Draft
RECOMMENDATION:
Our Inclusionary Housing Fund Policy Subcommittee recommends that the Town Council review the enclosed documents and provide comments and direction to Staff on how to update the draft policy so that it can return with a final policy for Town Council consideration.
BACKGROUND:
For background, we have been focused on formulating a policy for use of the Town’s “In-Lieu” funds, which derived from the payment of a developer’s in-lieu funds in part from the Blue Oaks subdivision in 2013. To date, the Town’s In-Lieu fund holds approximately $4,599,000, to be used for housing-related Town activities. As opportunities arise to provide grants, subsidize development fees, or otherwise support our efforts to provide affordable housing in Town, the Town Council should adopt a policy about how and when these funds should be used, and the types of projects that should be eligible for consideration for use of these funds. The Subcommittee recommends adoption as soon as possible to provide flexibility to respond to opportunities in a timely manner.
We asked the Finance Committee, Open Space Committee and Race and Equity Committees to discuss components of a potential In-Lieu Housing Fund policy. We attach a copy of their combined work product (the “Committee Memo”), which has been very useful as the Subcommittee considers the topic.
We also enclose an initial draft of a policy for the Town Council to discuss. We created this document using examples from policies adopted by other jurisdictions for a similar purpose, and integrated concepts raised in the Committee Memo. You will note that the Committee Memo addresses some topics at a very detailed level. The Subcommittee felt that the policy needs to
TOWN OF PORTOLA VALLEY
Colleagues Memo
TOWN OF PORTOLA VALLEY
________ Cindy Rodas, Finance Director Approved by: Sharif Etman, Town Manager operate as a framework rather than impose specific requirements, and so you will see that the Committee Memo concepts are integrated at a more conceptual level to allow the Town Council to react appropriately to the specific circumstances that evolve during our administration of the 6th Cycle of our Housing Element. For example, we don’t know what properties may be identified in the future, particularly during our intended Sunrise Period when we are looking for alternatives to development of affordable housing on Dorothy Ford Field and Open Space, and so we may not want to dictate now detailed approaches that may constrain the Town Council’s flexibility to respond to new opportunities or result in spending a substantial amount in the near future before alternatives are identified. The Subcommittee also felt that the policy should be given some direction on priorities for use of funds, rather than a required ordering of the potential uses.
We welcome any comments or suggestions the Town Council may have. This effort has raised many policy-level questions that would be helpful for you to comment on, including:
1. Should we have caps on the use of funds, either based on time or the maximum amount to be provided to a given project?
2. Should we try to preserve a certain portion of the fund until we know how the Sunrise Period efforts work out?
3. Does the Town want flexibility to purchase land for subsequent use by developers for affordable housing, or does the Town prefer to subsidize projects initiated by these developers?
4. Should we prioritize low and very-low income housing over other opportunities, or should we generally look to make housing opportunities available (which in theory may help those needing affordable housing indirectly)?
5. How can we make sure that development occurs in a manner that maximizes the number of affordable housing units, and avoid an approach that confers undue profit on developers (if that is perceived as an issue by the Town Council)?
6. Should ADUs and JADUs receive specific treatment and facilitation as they are more likely to occur throughout Town somewhat organically and not require development of housing at higher densities on a site?
7. What types of deed restrictions should be required for projects for which funds are allocated? Should these be included in the policy or left for future determination based on the nature of specific projects?
FISCAL IMPACT
Other than the assistance staff provided for this effort, no other fiscal impact is anticipated in the Town Council review of the draft policy.
ATTACHMENTS
1. Draft Affordable Housing Fund Policy
2. Committee Memo
ATTACHMENT 1
DRAFT
AFFORDABLE HOUSING FUND POLICY
Establishment of the affordable housing fund.
1. There is hereby established by the town council an affordable housing fund. Such fund shall receive all fees collected pursuant to inclusionary housing in-lieu fee regulations and, any other appropriations as determined from time to time by the Town, and all other moneys received by the affordable housing fund either from special funds or general fund appropriations, or from other sources. Separate accounts within the affordable housing fund may be created from time to time to avoid commingling if required by law or as deemed appropriate to further the purposes of the fund.
2. Principal and interest from loan repayments, proceeds from grant repayments, forfeitures, reimbursements, and all other income from affordable housing fund activities, plus all income from the activities of the fund's separate accounts, shall be deposited into the affordable housing fund. All funds in the account shall earn interest at least at the same rate as pooled investments managed by the Town. All interest earnings from the account shall be reinvested and dedicated to the account. The transfer of interest earnings shall be made quarterly or upon direction of the town manager. Transferred funds shall accrue interest from the time of transfer.
Fund use location.
Affordable housing funds shall serve to increase the supply of affordable housing that is located within the Town of Portola Valley.
Administration.
The affordable housing fund and all accounts within the affordable housing fund shall be administered by the town manager who shall have the authority to govern the fund consistent with this policy, the appropriate ordinances, and applicable town policies. In instances where direction for the administration of the fund is needed but lacking, the town manager shall develop appropriate procedures, subject to approval by the town council. The town has the option to select and contract with an outside entity/nonprofit agency to administer a portion or all the affordable housing fund. The responsibilities, tasks, and performance standards to be assumed by the entity shall be described in an executed agreement between the entity and the town.
Eligible fund expenses.
Moneys deposited in the affordable housing fund along with any interest earnings on such moneys shall be used to:
1. Increase and improve the supply of housing affordable to workforce, moderate, low, and very low-income households through the following means:
ATTACHMENT 1
a. Provide funding for pre-development and construction expenses necessary to create new affordable housing.
b. Purchase land directly (land banking) or provide funding to affordable housing developers or community land trusts to purchase suitable sites to build affordable housing.
c. Provide funding for purchase and/or rehabilitation of existing multi-family housing for conversion to deed restricted affordable housing. d. Other opportunities as they may arise that are fully consistent with this policy.
2. Cover reasonable administrative expenses not reimbursed through processing or other fees, including:
a. Reasonable consultant and legal expenses related to the establishment and/or administration of the affordable housing fund,
b. Reasonable expenses for administering the process of calculating, collecting, and accounting for in-lieu and housing impact fees, and
c. Town administrative costs for the development, permitting, and the ongoing monitoring of affordable housing projects constructed with affordable housing fund moneys.
3. No portion of the affordable housing fund may be diverted to other purposes by way of an intra-agency loan or otherwise.
Funding priorities.
Funding requests shall be considered, giving priority to the following:
1. Identifying, funding the acquisition of, and funding the construction of affordable units on Housing Element Opportunity Sites, or alternative sites that contribute to meeting the RHNA obligations of the Housing Element on an equivalent basis.
2. Projects that would enable developers to increase the percentage of units in a project that are for very low-, and low-income households.
3. Supporting the development and construction of accessory dwelling units and junior accessory dwelling units.
4. Streamlining affordable housing processes in Portola Valley, monitoring compliance with deed restrictions or other requirements based on which funds are provided, and monitoring results of the Town’s affordable housing efforts and programs.
5. Supporting projects for which the Town Council determines such funds will have the greatest impact in addressing the Town’s affordable housing needs, consistent with the Town’s General Plan.
ATTACHMENT 1
Use of the affordable housing fund money.
Moneys in the affordable housing fund, subject to the discretion of the Town Council, may be used for any or all the following:
1. Construct, rehabilitate, preserve, or subsidize very low, low, moderate income and workforce housing.
2. Assist other governmental entities, private organizations or individuals in the construction, rehabilitation or subsidy of very low, low, moderate income and workforce housing.
3. Hire or engage consultants with demonstrated experience in the development of affordable housing projects to evaluate the feasibility of potential affordable housing sites or projects and/or develop site and building designs that reflect an appropriate affordable housing project on such sites.
4. Purchase or contribute to the purchase of land in Portola Valley for use in constructing affordable housing.
5. If affordable housing funds are approved to fund construction, they shall only be used to construct affordable housing units identified by the Town Council.
6. Assist housing development corporations, through loans including, equity participation loans, grants, pre-home ownership co-investment, participation leases, or other public/private partnership arrangements.
7. Affordable housing funds may be disbursed, hypothecated, collateralized, or otherwise employed for these purposes from time to time as the Town Council deems appropriate to accomplish the purposes of the affordable housing fund.
Expenditure.
Expenditures from the affordable housing fund shall be controlled, authorized, and paid in accordance with the town’s general budgetary policies. For all funding opportunities, an application shall be submitted to the Town, reviewed by town staff, and a report prepared for Town Council consideration. The report should contain a summary of the current affordable housing fund status, assessment of project consistency with this policy, an analysis of project eligibility, and a review of project documentation, pro forma, and other reports demonstrating project and applicant readiness and capability.
Every recipient shall enter into a written agreement with the town which sets forth the terms and conditions of the grant or loan. At a minimum, the agreement shall describe the allowable uses of the grant or loan funds, the dollar amount and disbursement method, compliance with
ATTACHMENT 1
the applicable town standards and policies for affordable housing and periodic reporting to assist the town in the monitoring of compliance with the agreement.
Accounting of fund.
Funds shall be accounted for in the town’s annual financial audit.
Inclusionary Housing Fund - Notes from Finance,
Open Space and Race & Equity Committees
Summary:
Open Space Committee recommendations for Inclusionary Fund use:
The Open Space Committee argues that the use of the Inclusionary Fund should be linked with the identification of Dorothy Ford Park and Open Space as a potential site for low-income housing. They believe that spending the Inclusionary Fund now would limit the Town's options.
They identify key challenges that need to be addressed, such as the protection of the 400-year-old oaks, sufficient buildable space, and design options. They suggest that the Inclusionary Fund could be key in addressing these challenges and possibly purchasing alternative sites.
Finance Subcommittee on Inclusionary Housing Fund:
The Subcommittee on Inclusionary Housing Fund discusses how to optimize the use of the $4.6-$4.9M Inclusionary Housing Fund (IHF) to create low-income housing without resulting in excessive profit for developers. They propose three options: purchasing an alternative site, using funds to decrease the visual impact of another large low-income housing project, and providing a subsidy for developers to shift a percentage of units to lower-income status. They recommend adopting the third option and drafting guidelines for how a project could qualify for the subsidy.
Race & Equity Committee - IHF Subcommittee:
The IHF Subcommittee - Race & Equity Committee recommends focusing the IHF resources on housing for Low and Very Low income households. They propose using the fund as a loan mechanism rather than direct aid, suggesting that loan repayments could help grow the fund.
They recommend supporting ADUs and JADUs, as they are faster and lower cost projects. They also recommend hiring dedicated staff for streamlining the process and maintaining an ongoing monitoring program to ensure compliance over time.
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Similarities of the Recommendations:
● All reports stress the importance of using the IHF to facilitate the creation of low-income and very low-income housing.
● There is a consensus on the need for careful planning and monitoring of fund usage, with a focus on achieving the greatest impact.
● All reports acknowledge the challenges involved in balancing the need for housing with the importance of preserving open spaces.
● Each report mentions the potential use of the IHF for supporting development projects that might not otherwise be economically viable.
● The idea of using the IHF to incentivize the creation of Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) is considered in all reports.
Differences in the Recommendations:
● The Open Space Committee report focuses primarily on the potential impact of housing development on the Dorothy Ford Park and Open Space, and urges a delay in fund utilization until alternative sites and design options have been thoroughly evaluated. ● The Subcommittee on Inclusionary Housing Fund presents specific structural options for fund usage, including purchasing alternative sites, decreasing the visual impact of housing projects, and subsidizing developer projects to enable a shift to lower-income housing.
● The IHF Subcommittee - Race & Equity Committee report puts forth the idea of using the fund as a loan mechanism rather than direct aid, and sets a cap on the percentage of the fund that can be allocated to a single project.
General Recommendations:
The three reports offer a range of recommendations, and they can be encapsulated as follows:
● From the Open Space Committee: Defer spending down the Inclusionary Fund until the work of the committees is done, thereby preserving the Town's options. This allows time to address crucial questions about the development of the Dorothy Ford Park and Open Space, including the protection of the 400-year-old oaks, the viability of the buildable space, and the design options for housing.
● From the Finance Subcommittee on Inclusionary Housing Fund: The third structural option, which proposes the allocation of funds to proposed projects to move a percentage of units to a more favorable income category, is recommended as the most likely to succeed. Also, they recommend setting guidelines for the allocation of funds to ensure an appropriate level of incremental inclusive housing. ● From the IHF Subcommittee - Race & Equity Committee: The idea of using the fund as a loan mechanism rather than direct aid is a valuable one. This approach would allow the fund to be replenished over time, extending its usefulness. Also, the recommendation to cap the percentage of the fund that can be allocated to a single project helps to ensure that the fund's resources are used diversely and effectively. Prioritizing JADUs and ATTACHMENT 2 Page 34 of 45
conversions of permitted accessory buildings to count towards the housing element is another strong recommendation.
ATTACHMENT 2 Page 35 of 45
Original Documents
Open Space Committee recommendations for Inclusionary Fund use submitted to Inclusionary Fund Subcommittee
June 8, 2023
From the perspective of the Open Space committee, the near term use of the Inclusionary Fund cannot be separated from the identification of Dorothy Ford Park and Open Space as the site of 50 “very low income” housing units in the May 10 Agenda Draft Housing Element. The Town’s “Post Adoption Implementation Plan and Related Recommendations for 6th Cycle Housing Element” describes a process where a Town Council subcommittee (Hasko and Taylor) and an ad hoc committee work to identify alternative sites to Dorothy Ford Park and Open Space, identify potential sites that could accommodate some of the density currently assigned to the Dorothy Ford Park and Open Space site, and evaluate design alternatives that retain “as much as possible the aesthetic, recreational and natural attributes of these sites while complying with our HE commitments.”
https://www.portolavalley.net/home/showpublisheddocument/17292/638150918263400000 This means that over the next year, we will have a much clearer sense of what the best use of the Inclusionary Fund will be. The Inclusionary Fund is an essential resource for successfully implementing the Housing Element and Post-Adoption plan. Until the work of these committees is done, spending down the Inclusionary Fund only decreases the Town’s options.
The most pressing questions about the development of the Dorothy Ford Park and Open Space will have to be addressed, including the protection of the 400 year old oaks on the land, whether or not the creek and scenic corridor setbacks leave sufficient buildable space, and design options to create housing and retain open space and recreation. Inclusionary Fund support may be essential to finding workable solutions to these challenges. The Inclusionary Fund may also make it possible for the Town to purchase alternative sites for some or all of the planned “very low income” housing units.
After the Town has determined whether and how many “very low income” housing units can be built at the Dorothy Ford Park and Open Space site, it will make sense to set policies for the remainder of the Inclusionary Fund. If new zoning needs to be in place in two years, the work of the implementation will need to be completed over the next 18 months. At that point, it will make sense to determine the values that should guide the use of the Inclusionary Fund and the specific goals that should drive decisions about the use of those funds.
Open Space Committee comment submitted to Town Council on July 7, 2022 The Portola Valley Open Space Acquisition Advisory Committee (PVOSAAC) unanimously and strongly opposes building any housing on our open spaces (including at Dorothy Ford Park and Open Space). Open Space is a fundamental value and characteristic of Portola Valley. We have received tax revenues, financial donations, and gifts of properties for open space in good faith. If ATTACHMENT 2 Page 36 of 45
we violate that trust, we could irrevocably compromise our ability to receive or acquire open space in the future.
We recognize the need and mandate for affordable housing. We appreciate the efforts of the Ad Hoc Housing Element Committee, Staff, Planning, and Consultants. However, we respectfully encourage the Town Council to provide additional time to explore alternative options to achieve our affordable
housing needs.
ATTACHMENT 2 Page 37 of 45
Finance Subcommittee on Inclusionary Housing Fund
Subcommittee Members: George Savage, Lucy Neely and Stephen Cassani Issue: How should we allocate the $4.6-$4.9M in the Town’s Inclusionary Housing Fund (IHF)? We want to use the funds to move the needle on creating low-income housing. How do we optimize the use of funds in a way that creates appropriate incentives that directly result in incremental low-income housing, while not resulting in excessive profit for developers.
Discussion
Fees-in-lieu of housing (c.f., Blue Oaks), while they can play a role, are only impactful if they actually result in affordable housing being built.
Structural options:
1) Purchase site to serve as alternative to Dorothy Ford Park for low-income housing
a. Example: property owned by George Stern’s heirs; 20-30 flat acres behind Town Center; ½ for housing and ½ for park/open space; could combine open space and park funds [low probability]
2) Dedicate funds to decrease the visual impact of another large low-income housing project (e.g., underground parking and other upgrades for any Dorothy Ford Park project) [medium probability]
3) Upon application by developers, apply funds to proposed projects to move a percentage of units to a more favorable income category [high probability] Options 1 and 2 are contingent on specific circumstances. Option 3 is more likely, and indeed a developer has already applied for subsidy (Willow Commons).
Recommendations:
Option 3
Provide partial town fee abatement and a $100K/unit subsidy for deed-restricted conversion of a percentage of a project to lower-income status. The goal of the subsidy is to allow a project to move forward that otherwise might not be economically viable.
The Town Council would decide on developer applications. We would recommend that the town draft a set of guidelines that provide reasonable clarity on how a project would qualify for the subsidy.
Other potential uses of IHF funds that have merit are to cover the costs of Deed Restriction Monitoring and potentially hiring a consultant to help formulate an implementation plan.
Options 1 and 2
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In the meantime, the TC and town staff would remain alert to possibilities to concentrate resources on option 1 or 2, should appropriate circumstances arise.
Additional Considerations:
· Consider whether the subsidy should be increased for Very Low Income units vs.
Low Income units.
· Potential caps on fund distributions: We don’t believe an annual cap is necessary or beneficial, as long as the allocation of funds results in an appropriate level of incremental inclusive housing. However, the Town might consider allocation guidelines for various project or use categories (e.g., direct subsidies for multi-unit development vs. subsidies for ADU or JADU, vs. Option 1 or 2 above, etc.). · ADUs / JADUs: These can be important contributors to expanding the stock of inclusive housing. The question we struggled with a bit is whether a $100K subsidy will actually move the needle when it comes to ADUs and JADUs. For example, given the relatively high cost of building an ADU in our community, would the receipt of a $100K subsidy provide sufficient incentive for a homeowner to deed restrict their unit? A unit that otherwise would be entitled to much higher market rate rent? The loss of value would far exceed the $100K, so our concern is that in the case of ADUs, the subsidy would be more of a reward than an incentive for the homeowner building an ADU. And maybe that’s ok – but we wanted to flag this potential issue.
JADUs may be different. Given the potentially much lower cost to create a JADU, a $100K subsidy may be more impactful as an incentive to undertake the expense and deed restriction. Of course, a deed restriction on a house containing a JADU could have a significant impact on the value of the house upon resale. So with respect to ADUs and JADUs, we think the $100K may not be an incentive so much as a reward (and of course helpful in recouping some of the cost) for altruistic homeowners who are willing and able to provide low income housing in our community.
· Deed Restriction Monitoring: The Town should consider creating a deed restriction monitoring program to ensure compliance over time. The IHF could fund such a program.
· Engagement of a Consultant: a memo from “21 Elements” that was part of the prior agenda packet, provided various recommendations for how to best manage IHF implementation, including hiring a consultant. The cost was estimated to be in the $30K range.
ATTACHMENT 2 Page 39 of 45
IHF Subcommittee - Race & Equity Committee
How to spend Inclusionary Housing Fund resources?
FUNDING PRIORITIES
● Limit to housing for Low and Very Low income housing? ○ Yes.
○ Concessions, fee reduction, etc are a separate matter and should be available to all units that count toward rhna.
● Financial Assistance – Use up as direct aid vs. maintain ongoing program? ○ Maintaining the program is important so incentives can continue into the future. ○ Loans better than direct aid; repayment will re-fund the program. ■ Loans preferable to grants
■ Loan fees could grow the fund.
● A few larger vs many smaller projects?
○ Suggest language: No more than 33% of the total fund will be allocated to any 1 project.
● Support ADUs
○ Direct immediate support to ADU conversions and JADUs since those are the faster, lower cost projects.
■ Dedicated staff, streamlined process for all
■ Financial assistance for selected - criteria?
■ Prioritize JADUs and conversion of permitted accessory buildings that need only added kitchen or bath to become ADUs to count toward rhna. ● Consider use for Affiliated housing
■ Sequoias, Priory and Stanford are already partners.
■ Actively solicit additional affiliated housing partners. ● Require BMR contracts for rentals
○ Yes, for any projects receiving financial assistance. ■ Not for those just getting fee waivers, expedited approvals, etc. ○ Require this and must have monitoring structures in place before loans are made.
○ Monitoring –confirm amortization schedule, loan payments, actually rented? Actually rented to low income?
● Income requirements to get aid? Should we be giving these funds to wealthy residents? ○ Needs further discussion and details.
● Use for hiring consultants?
○ No for hiring a consultant
○ Yes for dedicated staffing in the Planning Dept to streamline the process; perhaps hiring a dedicated staff member for (3) years.
○ Suggest looking at additional resources such as apprenticeships/internships ■ Corte Madera Apprenticeships?
■ Woodside Priory Internships?
■ Local college/university internships?
ATTACHMENT 2 Page 40 of 45
● Notice of Funding Availability? If using the HTF to assist nonprofits providing housing-related services, consider using a competitive process to award these funds ○ This is appropriate only with specific identified projects as planning begins.
ATTACHMENT 2 Page 41 of 45
______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Mary Hufty
DATE: 10/24/2023
RE: Conservation Committee
1. Discuss Dittrichia presence on private properties and how to encourage its removal – Conservation is considering recommending that the removal of this flammable invasive weed be part of the permitting and inspection of building sites. Conservation offers to do their part for inspection. Fire District may also have interest in this.
2. Discuss work in Los Trancos Creek near Ford Field (Magill) – Stop work was placed by Santa Clara County. Criteria had not been met. Portola Valley has a Conservation easement on the other side of the Creek 25 feet east, the easement was granted because of the property owner was granted the right to bridge the creek by the town. Our creeks need to be protected. Utility connection was granted from Alpine Road. Trucks are using Dwight Crowder and Alpine Trail for access. Not OK during the rainy season. Recommending a post to restrict vehicular access on the trail.
3. Oversight of Town-owned properties - Updates (Committee)
4. Committee / Town Cooperation
i. Public Works (Magill)
ii. Wildfire Preparedness Committee (Chiariello) Kim (Fire Marshall) has released the current 2023 ordinance, conservation works with them well to identify flammable weeds iii. Open Space Committee (Chiariello)
iv. Update on joint sub-committee regarding OS Maintenance budget (Chiariello) Conservation looks forward to more detail on OS accounting. An Open Space account would clarify how funds are used. Numbers have not been given to Conservation. The goal is to stay true to the vision of obtaining open space. Financial management has been improved with increasing return. Get grants for fuel reduction. As a town, we should concentrate on Scenic corridors and wildlife corridors.
v. Trails and Paths – updates on Hawthorns trails and other (Coleman) Keep in mind the Alpine Scenic Corridor while trees are being removed and parking. Conservation Easement given to POST on Hawthorne Property was written in 2006. Trees are restricted even for parking lots. Culverts will be cleared in November.
5. CC Routine Town Communications
TOWN OF PORTOLA VALLEY
Committee / Commission Liaison
Report
TOWN OF PORTOLA VALLEY
i. Kudos (Plunder) for volunteer efforts to remove Dittrichia
6. Tip of the Month (Magill) Clean culverts and prune dead wood.
7. . SOD Blitz – Results Monday, November 13 at 6:00 P.M., Woodside Town Hall, 2955 Magill will attend
:
______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Sarah Wernikoff, Vice Mayor
DATE: Wednesday, November 8th 2023
RE: MROSD Hawthorns Area Plan 10.26.23 PAWG Meeting
1) The 10/26 meeting ran 4 hours and included presentations from MROSD staff and consultants, public comment, Q&A between the PAWG/staff/consultants, PAWG breakout group discussions and recommendations from the PAWG. The agenda packet can be found on the MROSD website at:
https://www.openspace.org/sites/default/files/Hawthorns%20PAWG%20Mtg%203%20-%20PACKET.pdf 2) The Historic Complex is not part of the PAWG process. MROSD is currently working to develop the process for the Historic Complex, which will include public participation. 3) Los Trancos Road access to Hawthorns is not feasible due site lines per MROSD’s traffic consultant. 4) The MROSD team presented 4 design options for the PAWG to consider. After discussion in breakout groups, the PAWG agreed on the following:
• Entrance: Retain current “Hawthorns” entrance across the street from Roberts vs. moving out to the “East” entrance due to safety concerns (increased speeds at downward slope, less visibility due to trees). • Parking: Parking should be at location #3, which has less impact on the meadows and is less visible from Alpine Road. The current design accommodates 50 spaces based on the analysis from the Traffic consultant. (intentionally generous relative to the size of Hawthorns property to accommodate interconnectivity to other Midpen properties)
• Traffic: There is more work to be done on traffic impact. Bicycle traffic needs to be included. • Trails: Interconnectivity with Sweet Springs and Alpine Trail are important. A connection from Los Trancos is out of scope for this project (it is within the Historic Complex). There should be more trails/spurs within the loop, including viewpoints; an ADA accessible viewpoint should be a priority. • Dogs: Dogs should be allowed on leash only; no dog park. 5) The next meeting (12/16) will dive further into trails and include updates on parking lot size, traffic impact, users (hikers, bikers - including young riders, dogs, equestrians). In the meantime, Midpen staff will work directly with Town staff to clarify traffic impact reports and process.
TOWN OF PORTOLA VALLEY
Liaison Memo
TOWN OF PORTOLA VALLEY
6) The PAWG elected Interest Area Representative, Rachel Oslund, and Ward stakeholder, Helen Quinn (Ward 6/ PV resident), as Co-Chairs of the PAWG.
7) The next meeting of the PAWG is on Saturday December 16th 2023 from 9:00-1:00 at the MPOSD office in Mountainview.
8) Information about the Hawthorns Public Access Working Group (PAWG), including a list of PAWG members and the schedule of public meetings/agendas/agenda packets can be found at:
https://www.openspace.org/what-we-do/projects/hawthorns-public-access-working-group#timeline.
Public comments are posted on the MROSD website by navigating to the “Public Portal” on the Public Meetings page (found through the path Who We Are → Public Meetings → Public Portal → Committees → PAWG → Agenda)
The public PAWG meeting dates are as follows:
• July 27th, 2023 6:00-9:00pm
• Aug 26th 2023 9:00am-1:00pm
• October 26th 2023 6:00-9:00pm
• Dec 16th 2023 9:00am-1:00pm
• Jan 18th 2024 6:00-9:00pm
• Feb 29, 2024 6:00-9:00pm