Portola Valley City Council
May 27, 2026

TOWN OF PORTOLA VALLEY
Regular Meeting of the Town Council
Wednesday, May 27, 2026
7:00 PM
MAYOR: Craig Taylor
VICE MAYOR: Mary Hufty
COUNCILMEMBERS: Rebecca Flynn, Judith Hasko, Helen Wolter

A G E N D A
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 public comments by using the 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 the Portola Valley Town Council for consideration during the meeting and included in the public record. Members of the public may also provide comments in person at the meeting. The agenda and staff report will be posted on the Town’s website by approximately 5:00 PM the Friday prior to the meeting. Additionally, technology permitting, the public body will take questions using the Raise Hand button for those who attend the meeting online or by phone. The Mayor 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.

In-Person Public Comments: Please fill out and submit a Public Comment card to the Town Clerk or Mayor prior to speaking. The Mayor will call your name at the appropriate time. Each speaker's time is limited to three (3) minutes. The Mayor reserves the right to limit speaker's time, depending upon the number of speakers or other circumstances.

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.

VIRTUAL PARTICIPATION VIA ZOOM
To access the meeting by computer:
https://us06web.zoom.us/j/85661031107?pwd=XBbPrv9WKnql1xOByNvR6a5i74XjuR.1 Webinar ID: 856 6103 1107
Passcode: 048294
To access the meeting by phone:
1-669-900-6833 or 1-888-788-0099 (toll-free)
Mute/Unmute - Press *6 / Raise Hand - Press *9
1 Councilmember Rebecca Flynn will be participating remotely from 249 Cruisille, 69620 Theizé, France

1. CALL TO ORDER

2. ANNOUNCEMENT OF REMOTE ATTENDANCE / ROLL CALL

3. PRESENTATIONS / PROCLAMATIONS

4. TOWN MANAGER REPORT
There are no written materials, and the Town Council does not take action under this agenda item.

5. ORAL COMMUNICATIONS
Persons wishing to address the Town Council on any not on the agenda or related to Presentations/Proclamations or the Town Manager Report subject may do so now. Please submit a speaker’s slip located at the front of the room to the Town Clerk or Mayor, prior to speaking. Please note the Council is not able to undertake extended discussion or action on items not on the agenda.

Each speaker’s time is limited to three (3) minutes.

6. CONSENT AGENDA
a. Approve Special Meeting Minutes of May 13, 2026
b. Approve Regular Meeting Minutes of May 13, 2026
c. Approve Warrant List for May 27, 2026
d. Approve and Authorize the Mayor to Execute an Amendment to the Current Animal Control Services Agreement between the County of San Mateo and Cities/Towns for a Three-Year Term Beginning July 1, 2026
e. Consider Waiving Further Reading and Adopting Ordinance No. 2026-455 Amending the Town Zoning Code (Title 18 of the Portola Valley Municipal Code) to add Chapter 18.25 Standards for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) and Chapter 18.82 Indemnification of Town; and by Amending Section 18.36.040 Accessory Uses and Determining the Project is Exempt Under the California Environmental Quality Act. f. Approve and Authorize the Mayor to Execute an Amendment to the Current Professional Consultant Services Agreement for On-Call Planning, Building, Code Enforcement, and Engineering Services with CSG, Inc.

7. PUBLIC HEARING
a. Hold Public Hearing and Consider Adoption of Resolution Adopting the Master Fee Schedule Update Revised Attachment 1

8. REGULAR AGENDA
a. Provide Update and Receive Direction Town Committees Funding Requests for Fiscal Year 2026-27
b. Provide Update and Receive Direction for Not-for-Profit Agency Funding Requests for Fiscal Year 2026-27 Not-for-Profit Agency Funding Requests
c. Consider Adoption of a Resolution Approving an Updated, Salary Schedule, New Job Descriptions for Accountant I/II, Finance Manager, Senior Development Review Technician/ Building Inspector, and Workforce Plan for Fiscal Year 2026-27 d. Receive Update from the Town Council Ad Hoc Subcommittee to Identify Alternative Legal 2 Counsel to Advise the Town regarding Midpeninsula Regional Open Space District’s Proposed Lower Barn Project and Hawthorns Historic Complex Property e. Consider Appointment of a Town Council Ad Hoc Subcommittee to Research Options to Work Directly with the Midpeninsula Regional Open Space District Regarding the Hawthorns Property

9. COUNCIL SUBCOMMITTEE, LIAISON COMMITTEE, AND REGIONAL AGENCIES REPORTS a. 05/11/2026 SMC Library JPA Governing Board Meeting Liaison Report b. 05/15/2026 Geologic Safety Committee Meeting Liaison Report c. 05/20/2026 Trails & Paths Committee Meeting Liaison Report

10. ADJOURNMENT
Oral and written reports arising out of Council subcommittee and liaison appointments to both in-town and regional committees and initiatives. The Town Council does not take action under this agenda item.

The next Regular Town Council meeting will be held on June 10, 2026.

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 (mah-WEK- 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. 3 TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Veronica Dao, Town Clerk
DATE: May 27, 2026
RE: Approve Special Meeting Minutes of May 13, 2026

RECOMMENDATION
Staff recommends Town Council review and approve the May 13, 2026 special meeting minutes.

ATTACHMENTS

1. 05-13-2026 Council Special Meeting Minutes
4 Volume 47
May 13, 2026

PORTOLA VALLEY TOWN COUNCIL SPECIAL MEETING MINUTES – MAY 13, 2026

1. CALL TO ORDER
Mayor Taylor called the meeting to order at 6:04 p.m. Roll call was taken.

Present: Councilmembers Helen Wolter, Judith Hasko, Rebecca Flynn, Vice Mayor Mary Hufty, Mayor Craig Taylor

Absent: None
Others: Town Manager Darcy Smith, Town Attorney Catherine Engberg, Town Clerk Veronica Dao

2. ANNOUNCEMENT OF REMOTE ATTENDANCE / ROLL CALL

3. ORAL COMMUNICATIONS
Mayor Taylor invited public comment.

Public Comment
 Kristi C.

4. COMMISSION INTERVIEWS
a. Conduct Interviews and Appoint Commission Member for the Following:
 One volunteer to serve on the Architectural and Site Control Commission (ASCC) for a term expiring in December 2028
The Council interviewed the following applicants: Ellen Vernazza and Sonia Dhillon. Councilmembers deliberated over the candidate and their qualifications.

Motion and second (Flynn,) to appoint Sonia Dhillon to the Architectural and Site Controle Commission (ASCC) for one term expiring December 2028. The motion passed 3-2 by voice vote, with Councilmember Hasko and Vice Mayor Hufty voting no.

5. ADJOURNMENT
The Council adjourned the meeting at approximately 6:55 p.m. _________________________ _________________________
Craig Taylor, Mayor Veronica Dao, Town Clerk
Submitted for approval to the Town Council at its May 27, 2026 regular meeting. 5 TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Veronica Dao, Town Clerk
DATE: May 27, 2026
RE: Approve Regular Meeting Minutes of May 13, 2026

RECOMMENDATION
Staff recommends Town Council review and approve the May 13, 2026 regular meeting minutes.

ATTACHMENTS

1. 05-13-2026 Council Regular Meeting Minutes
6 Volume 47
May 13, 2026

PORTOLA VALLEY TOWN COUNCIL REGULAR MEETING MINUTES – MAY 13, 2026

1. CALL TO ORDER
Mayor Taylor called the meeting to order at 7:01 p.m. Roll call was taken by the Clerk.

Present: Councilmembers Helen Wolter, Judith Hasko, Rebecca Flynn, Vice Mayor Mary Hufty, Mayor Craig Taylor

Absent: None
Others: Town Manager Darcy Smith, Town Attorney Catherine Engberg, Planning and Building Director Sarah Cawrse, Town Clerk Veronica Dao

2. ANNOUNCEMENT OF REMOTE ATTENDANCE / ROLL CALL

3. PRESENTATIONS / PROCLAMATIONS
a. Mental Health Awareness Month Proclamation
Mayor Taylor made remarks.
b. Presentation by Scott M. Granet Regarding Mental Health Awareness Vice Mayor Hufty introduced Mr. Granet, who gave a short presentation on mental health.

4. TOWN MANAGER REPORT
Town Manager Smith updated the Council on the following:
 Portola Valley Post mailed to all residents
 Community survey
 Horse Fair on May 16
 Financial audits update
 Finance Committee meeting on May 19

5. ORAL COMMUNICATIONS
Mayor Taylor invited public comment.

Public Comment
7 Volume 47
May 13, 2026

 Joseph
 Bob Bauer
 Kristi C.

6. CONSENT AGENDA
Mayor Taylor invited public comment.

Public Comment
 Rita Comes
Consent Agenda item 6c was pulled for separate discussion and action.

Motion and second (Hasko, Flynn) to approve Consent Agenda items 6a and 6b. The motion carried unanimously by voice vote.

Motion and second (Wolter, Hasko) to approve Consent Agenda item 6c. The motion carried unanimously by voice vote.
a. Approve Special Meeting Minutes of April 22, 2026
b. Approve Regular Meeting Minutes of April 22, 2026
c. Approve Warrant List for May 13, 2026

7. PUBLIC HEARING
a. Hold a Public Hearing, Waive the First Reading, and Introduce Ordinance No. 2026-455 Approving Amending the Town Zoning Code (Title 18 of the Portola Valley Municipal Code) to Add Regulations Related to Accessory Dwelling Units, Junior Accessory Dwelling Units, Indemnification of Town, and Emergency Shelters by Adding Chapter 18.25 Standards for Accessory Dwelling Units (ADU) and (JADU) and Chapter 18.82 Indemnification of Town; Cost Reimbursement; and by Amending Section 18.36.040 Accessory Uses and Determining the Project is Exempt Under the California Environmental Quality Act
Planning & Building Director Cawrse and Contract Planner Brandon DeLucas presented the item.

Mayor Taylor invited public comment.

Public Comment
 Judith Murphy
 Kristi C.

Council took a short break at 9:30 p.m. and returned at approximately 9:37 p.m. 8 Volume 47
May 13, 2026

Council asked questions and discussed the item.

The item was tabled for action later.

Council took up Agenda Item 8 to hear subcommittee and liaison reports.

Council returned from the second break at 11 p.m. and resumed action on Item 7a.

Motion and second (Wolter, Hasko) to introduce Ordinance No. 2026-455 as amended by staff. The motion carried unanimously by voice vote. b. Hold First Public Hearing Regarding Proposed Adoption of a Town Charter Town Manager Smith introduced and presented the item.

Mayor Taylor invited public comment. None were received.

Council asked questions and discussed the item.

No formal action was taken.

8. COUNCIL SUBCOMMITTEE, LIAISON COMMITTEE, AND REGIONAL AGENCIES

REPORTS
Council tabled action on Item 7a and skipped over 7b to hear Item 8.

Councilmembers reported on several local and regional meetings they attended recently.

Mayor Taylor invited public comment. None were received.

Council recessed for a short break at 10:53 p.m. and returned at approximately 11 p.m. to resume action on 7a.

9. ADJOURNMENT
The meeting adjourned at 11:36 p.m.
_________________________ _________________________
Craig Taylor, Mayor Veronica Dao, Town Clerk
Submitted for approval to the Town Council at its May 27, 2026 regular meeting. 9 ______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Anthony McFarlane, Assistant Town Manager
DATE: May 27, 2026
RE: Approve Warrant List for May 27, 2026.

RECOMMENDATION:

Review and accept the Warrant List for May 27, 2026:

REPORT SUMMARY
The following table lists warrant activity by date, tracks starting and ending warrant numbers, and total amount of warrants issued.

The following table lists payments by fund.

Date
Ending
Warrant #
Warrant 5/27/2026 6012 6047 36 269,835.42 5/28/2026 5/13/2026 6011 Attached are Warrant Lists for:

Prior Warrant List
Type of Warrant Date
Starting
Warrant #
Ending
Warrant #
Total
Warrants Amount
Warrants
Released
Date Fund Amount
5/27/2026 101-General Fund 182,523.88
5/27/2026 205-Library Fund 2,016.67
5/27/2026 206-Gas Tax Fund 1,341.25
5/27/2026 212-Measure M MVF Fund 1,195.00
5/27/2026 222-Inclusion In-lieu Fund 3,505.50
5/27/2026 401-Capital Projects 10,270.43
5/27/2026 701-Customer Deposits 68,982.69
Total $ 269,835.42
Payments by Fund

TOWN OF PORTOLA VALLEY

STAFF REPORT

TOWN OF PORTOLA VALLEY
10 The following table lists the warrants issued as EFT/ACH payments. EFT/ACH payments are recurring payments for contributions related to retirement and deferred compensation, workers’ compensation premiums, and utilities, etc.

The following table lists the warrants that were voided and the reason for the voided transaction.

The following table lists the warrants issued outside of the scheduled warrant list cycle for various reasons, such as processing error, reissuing a voided check, or employee separation.

DISCLOSURE
For additional information on any item disclosed in this report, please contact the Finance department directly at [email protected].

ATTACHMENTS

1. 05/27/2026 Warrant List Certification
Date Warrant # Issued to Fund Dept Purpose Amount
5/27/2026 6013 Bank of America 101 Various April Credit Card Charges $ 6,918.83 5/27/2026 6014 Cal Water Services 101 610 April-May Water Utility 4,192.13 5/27/2026 6015 CalPERS 101 Various April Contributions/May UAL 52,840.37 5/27/2026 6017 SCA of CA LLC 206/212 510 April Street Sweeping 2,095.00 5/27/2026 6019 CSG Consultants 101/401/701 Various April Services 77,571.87 5/27/2026 6021 Good City Company 101/222/701 Various April Services 54,378.75 5/27/2026 6024 Missionsquare Retirement 101 Various May Contributions 2,958.87 5/27/2026 6029 Navia Benefit Solutions 101 Various May Contributions 562.50 5/27/2026 6030 OpenGov, Inc 101 610 Annual Procurement Subscription 10,938.56 5/27/2026 6031 Platinum Facility Services 101 610 April Janitorial Services/Deep Clean 6,050.00 5/27/2026 6038 State Compensation Insurance 101 120 May WC premium 1,560.08 5/27/2026 6039 Stepford 101 610 April IT Services/Subscriptions 5,441.50 5/27/2026 6042 Amazon 101 610 May Office Supplies 24.75 5/27/2026 6045 Matrix Consulting 101 610 Fee Study 14,400.00 $ 239,933.21
Warrants issued as ACH/EFT
Total
Date Warrant No Issued To Fund Dept Purpose Amount
$ -
Warrants Voided and Reissued
Total
Date Warrant No Issued To Fund Dept Purpose Amount
$ -
Warrants Issued Outside of a Scheduled Warrant List
Total
Date Warrant No Issued To Fund Dept Purpose Amount
$ -
Disclosure
Total
11 TOWN OF PORTOLA VALLEY Warrant Disbursement Journal May 27, 2026 Claims totaling $269,835.42 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 _____________________________ ________________________________ Anthony McFarlane, Assistant Town Manager Motion having been duly made and seconded, the above claims are hereby approved and allowed for payment. Signed and sealed this (Date) _____________________ _______________________________ _________________________________ Darcy Smith, Town Manager Craig Taylor, Mayor 12 13
14 15
16 17
18 19
20 21
22 23

TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Darcy Smith, Town Manager
DATE: May 27, 2026
RE: Approve and Authorize the Mayor to Execute an Amendment to the Current Animal Control Services Agreement between the County of San Mateo and Cities/Towns for a Three-Year Term Beginning July 1, 2026

RECOMMENDATION
Staff recommends that the Town Council approve Amendment No. 1 to the current Agreement with the County of San Mateo for the continued provision of animal control services for a three year term commencing July 1, 2026, with an estimated cost of $23,233 for the first year (Fiscal Year 2026-27) and costs to be recalculated annually for subsequent years; and authorize the Mayor to execute the agreement in substantially the form presented.

BACKGROUND
Animal control is one of the longest running regional/shared services in San Mateo County. Since 1952, the County has contracted with the Peninsula Humane Society & SPCA (PHS) for animal control field and sheltering services. All 20 cities in the County have in turn contracted with the County for these services. Historically, cities/towns have taken advantage of the economies of pooling resources in order to realize lower costs for services than each city could likely achieve by providing its own services.

PHS provides animal control services in a County-owned 45,000 square foot building at 12 Airport Boulevard in San Mateo. The mandated animal control service functions, which occur at the Airport Boulevard facility, include: receiving and housing stray animals; serving as the location for the public when looking for lost pets or surrendering animals; sheltering animals; spay/neuter clinic; and, vaccination clinic. For public convenience, licensing, micro-chipping, veterinary care and animal behavior work, and field services staff are at this location and respond to calls for service in the community.

The current agreements between the County and PHS, and between the Cities/Towns and the County, were approved in 2021 after a thorough RFP, review, and negotiation process which included broad participation from stakeholders (County Management, City Managers, Police Chiefs and other interested participants). These agreements are set to expire on June 30, 2026.

The language in the County agreement with PHS includes an option for a three-year extension, and both parties have agreed to extend the contract for an additional three years with no changes to the existing terms; however, the Agreement (Attachment 1) between the Cities/Towns and the County does not include equivalent language regarding an option to allow a three-year extension. As a result, an amendment to the agreement between the County and all 20 cities must be executed prior to June 30, 2026. The proposed Amendment No. 1 (Attachment 2) will extend this contract to June 30, 2029, to align with the end of the County’s contract with PHS.

DISCUSSION
24 This agenda item presents for Council consideration the approval of Amendment No. 1 to the current Agreement with the County of San Mateo for the continued provision of animal control services for a three year term commencing July 1, 2026, with an estimated cost of $23,233 for the first year (Fiscal Year 2026-27) and costs to be recalculated annually for subsequent years; and authorization for the Mayor to execute the agreement in substantially the form presented. Once all agreements are approved by the 20 cities/towns, the County will bring the contract extension to the Board of Supervisors for final approval.

The proposed amendment makes minor clerical updates to the contract language, and also removes the requirement for an audit during the three year extension period. This requirement was removed because the County released an RFP in January of 2026 for a contractor to conduct a fiscal and performance audit of PHS/SPCA. The County is currently in negotiations with the selected firm, and the audit is expected to begin later in May. Conducting another additional audit within such a short timeframe would not be fiscally responsible as it would likely yield duplicative results. The results of this audit will be shared with cities. The County has assured cities that at this time, PHS/SPCA is meeting their performance requirements and fulfilling its obligations. An audit requirement will be included in the next long-term vendor agreement.

FISCAL IMPACT
Funding for the animal control services agreement is included in the Town’s annual operating budget. The Town’s estimated share of the total contract in Fiscal Year 2026-2027 is $23,233 (Attachment 3). The cost is calculated using the contracted methodology wherein the Town's annual contract costs are based on a 3-year rolling average of usage (shelter and field services) and offset by the Town’s share of the last calendar year's licensing revenue. The licensing revenue is divided on a percentage basis determined by the number of licenses sold in each Town.

While the proposed costs for the contracted animal control services during the three-year extension period represent less than a 3% increase per year, the actual percentage share paid by all cities/towns is revisited annually. The number of service calls and sheltering animals generated by each city/town is tracked, and the average of the last three years’ data is used to set the cost for the upcoming year. Each city/town’s three-year average usage data are weighted 41% for field services and 59% for shelter services, with a credit for animal licensing revenue.

ATTACHMENTS

1. Executed Agreement

2. Amendment

3. Animal Control Costs
25 AGREEMENT BETWEEN THE COUNTY OF SAN MATEO AND

THE CITIES OF ATHERTON, BELMONT, BRISBANE, BURLINGAME,

COLMA, DALY CITY, EAST PALO ALTO, FOSTER CITY, HALF MOON BAY,

HILLSBOROUGH, MENLO PARK, MILLBRAE, PACIFICA, PORTOLA

VALLEY, REDWOOD CITY, SAN BRUNO, SAN CARLOS, SAN MATEO,

SOUTH SAN FRANCISCO, AND WOODSIDE FOR FACILITATION AND

COORDINATION OF ANIMAL CONTROL SERVICES
Executed Agreement – Available online at 20683
26 Amendment Template Version May 2021

AMENDMENT TO AGREEMENT

BETWEEN THE COUNTY OF SAN MATEO AND THE CITIES OF ATHERTON, BELMONT, BRISBANE,

BURLINGAME, COLMA, DALY CITY, EAST PALO ALTO, FOSTER CITY, HALF MOON BAY, HILLSBOROUGH, MENLO

PARK, MILLBRAE, PACIFICA, PORTOLA VALLEY, REDWOOD CITY, SAN BRUNO, SAN CARLOS, SAN MATEO,

SOUTH SAN FRANCISCO, AND WOODSIDE FOR FACILITATION AND COORDINATION OF ANIMAL CONTROL

SERVICES
THIS AMENDMENT TO AGREEMENT, entered into this ___ day of ________, 20___, by and between the COUNTY OF SAN MATEO, hereinafter called "County," and Atherton, Belmont, Brisbane, Burlingame, Colma, Daly City, East Palo Alto, Foster City, Half Moon Bay, Hillsborough, Menlo Park, Millbrae, Pacifica, Portola Valley, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and Woodside, each hereinafter individually called a “City” and collectively called "Cities," and, together with the County, the “Parties”; W I T N E S S E T H:

WHEREAS, on July 1, 2021, the Parties entered into an Agreement for Facilitation and Coordination of Animal Control Services for animal care and control, shelter services and animal licensing, in which the County agreed to facilitate provision of and the Cities agree to reimburse the County for the costs of specified animal care and control, shelter services, and animal licensing hereinafter set forth, as they have done for over 70 years with the Agreement expiring on June 30, 2026; and
WHEREAS, such agreements are authorized by Section 51300, et seq. of the California Government Code; WHEREAS, the Cities and County wish to amend the Agreement to extend the term by three (3) years, to June 30, 2029, and to make certain other amendments to the Agreement as set forth herein.

NOW, THEREFORE, IT IS HEREBY AGREED BY THE PARTIES HERETO AS FOLLOWS:

Section 2 Definitions under 2.3 Animal Control Program of the Agreement is amended to read as follows:

2.3 Animal Control Program: The program within County Health, or County’s designated contract agent, or both, or such other agency as the County of San Mateo Board of Supervisors may designate, which is specifically charged with regulating and enforcing laws dealing with animal control within the territorial limits of the County.

Section 2 Definitions under 2.6 Animal Licensing Service of the Agreement is amended to read as follows:

2.6 Animal Licensing Program: The program within County Health, or County‘s designated contract agent, or both, or such other agency as the County of San Mateo Board of Supervisors may designate, which is specifically charged with regulating and enforcing laws dealing with animal licensing within its jurisdiction.

Section 2 Definitions under 2.9 Holidays of the Agreement is amended to read as follows:

2.9 Holidays: Federally designated holidays with the addition of Easter and exclusion of Columbus Day/Indigenous Peoples' Day, in accordance with the Animal Control Contractor’s and Animal Licensing Contractor’s existing labor contracts.
27 Amendment Template Version May 2021 Page | 1
Section 3 Each City's Responsibilities under 3.3 Designation of Animal Control & License Revenue Collector of the Agreement is amended to read as follows:

3.3 Designation of Animal Control & License Revenue Collector. Each City hereby designates County Health or County’s designated contractor as the entity authorized to collect, at Cities’ cost, animal control and licensing revenue on the part of each City.

Section 4 County Responsibilities under 4.1.a of the Agreement is amended to read as follows:

4.1.a The County will pay Animal Control Contractor the following agreed-to amounts. These costs are to be reimbursed by the Cities as provided in Section 3.7 above.

Fiscal Year Amount
2021-22 $6,189,290.95
2022-23 $6,327,480.28
2023-24 $6,499,455.67
2024-25 $6,674,024.00
2025-26 $6,858,739.01
2026-27 $7,037,138.10
2027-28 $7,220,177.44
2028-29 $7,407,977.72
Section 4 County Responsibilities under 4.1.b of the Agreement is amended to read as follows:

4.1.b The County will pay Animal Licensing Contractor the following agreed-to amounts. These costs are to be reimbursed by the Cities as provided in Section 3.7 above (the table in 4.2 includes the payment for the contract Petdata for approximately $1,096,827 for five years from FY 2022-23 to FY 2026-27, which is $219,365 yearly and which will end on June 30, 2027).

Current Contract
2021-2029
Amount
One year license $4.28 per license
Multi-year license $4.28 for the first year and $2 for each additional year Late fees collected $2.50 collection service fee for each license Replacement tags $4.28 per tag
Bank and supply fees Actual cost
Section 4 County Responsibilities under 4.2 of the Agreement is amended to read as follows:

4.2 The County shall provide the administrative services as outlined in this Agreement for the following estimated amounts to be charged to and paid by the Cities. Costs may vary as labor negotiations and internal service charges are negotiated at a Countywide level. Cities will only be invoiced for the actual costs to provide said services as outlined in this Agreement and are to be reimbursed by the Cities as provided in Section 3.7 above.

Fiscal Year Amount
2021-22 $790,835
2022-23 $790,375
2023-24 $814,086
28 Amendment Template Version May 2021 Page | 2
2024-25 $822,227
2025-26 $846,894
2026-27 $872,301
2027-28 $898,470
2028-29 $925,424
Section 4 County Responsibilities under 4.3.j of the Agreement is hereby deleted in its entirety and shall be of no further force or effect.

Section 5 General Provisions under 5.8 Term and Termination of the Agreement is amended to read as follows:

5.8 Term and Termination. Subject to compliance with all terms and conditions, the term of this Agreement shall be from July 1, 2021 through June 30, 2029.

Except as otherwise provided by this section, this Agreement may not be terminated by any party during the effective period from July 1, 2021 through June 30, 2029. Each City is responsible for its annual percentage share under this Agreement for the entire term of this Agreement.

In the event any City fails to pay its percentage share as set forth in this Agreement and Exhibit B, every other City shall promptly pay its Proportionate Share of Cost of the non-payment, unless and until the County is able to recover the non-payment from the late or non-paying City.

This Agreement shall automatically terminate in the event of termination of the Animal Control Services Agreement. Upon termination, the County shall have no further obligation to provide, facilitate or coordinate services specified herein or in the Animal Control Services Agreement or Animal Licensing Services Agreement. Each City shall promptly pay its Proportionate Share of Cost as set forth in Exhibit B for all services rendered prior to termination.

Section 5 General Provisions under 5.15 Notices of the Agreement is amended to read as follows:

5.15 Notices. Any notice, request, demand, or other communication required or permitted under this Agreement shall be deemed to be properly given when both: (1) transmitted via facsimile to the telephone number listed below or transmitted via email to the email address listed below; and (2) sent to the physical address listed below by either being deposited in the United States mail, postage prepaid, or deposited for overnight delivery, charges prepaid, with an established overnight courier that provides a tracking number showing confirmation of receipt.

Any notices required by or given pursuant to this Agreement to any City shall be in writing and shall be delivered to the Clerk of that City at the address of the principal business offices of the respective City listed in the introduction of this Agreement or at such other address as any City may specify in writing to the County.

In the case of County, to:

Name/Title: Tina Cava, Program Manager of Animal Control and Licensing Address: 1600 W. Hillsdale Blvd San Mateo, CA 94402
Telephone: 650.573.2551
Email: [email protected]
29 Amendment Template Version May 2021 Page | 3
All other terms and conditions of the Agreement dated June 29, 2021, between the County and Contractor shall remain in full force and effect.

This Amendment shall become effective upon execution by all Parties. 30 Amendment Template Version May 2021 Page | 4
IN WITNESS WHEREOF, the Board of Supervisors of the County of San Mateo has authorized and directed the Health Chief to execute this Agreement for and on behalf of the County of San Mateo. The Cities of Atherton, Belmont, Brisbane, Burlingame, Colma, Daly City, East Palo Alto, Foster City, Half Moon Bay, Hillsborough, Menlo Park, Millbrae, Pacifica, Portola Valley, Redwood City, San Bruno, San Carlos, San Mateo, South San Francisco, and Woodside have caused this Agreement to be subscribed by its duly authorized officer and attested by its Clerk.

For County:

COUNTY OF SAN MATEO
By:

President, Board of Supervisors, San Mateo County
Date:

ATTEST:

By:

Clerk of Said Board
31 Amendment Template Version May 2021 Page | 5
_____________________________
Dated:

ATTEST:
_____________________________
Town of Atherton, Clerk

TOWN OF ATHERTON
___________________________
by
32 Amendment Template Version May 2021 Page | 6
_____________________________
Dated:

ATTEST:
_____________________________
City of Belmont, Clerk

CITY OF BELMONT
___________________________
by
33 Amendment Template Version May 2021 Page | 7
_____________________________
Dated:

ATTEST:
_____________________________
City of Brisbane, Clerk

CITY OF BRISBANE
___________________________
by
34 Amendment Template Version May 2021 Page | 8
_____________________________
Dated:

ATTEST:
_____________________________
City of Burlingame, Clerk

CITY OF BURLINGAME
___________________________
by
35 Amendment Template Version May 2021 Page | 9
_____________________________
Dated:

ATTEST:
_____________________________
Town of Colma, Clerk

TOWN OF COLMA
___________________________
by
36 Amendment Template Version May 2021 Page | 10
_____________________________
Dated:

ATTEST:
_____________________________
City of Daly City, Clerk

CITY OF DALY CITY
___________________________
by
37 Amendment Template Version May 2021 Page | 11
_____________________________
Dated:

ATTEST:
_____________________________
City of East Palo Alto, Clerk

CITY OF EAST PALO ALTO
___________________________
by
38 Amendment Template Version May 2021 Page | 12
_____________________________
Dated:

ATTEST:
_____________________________
City of Foster City, Clerk

CITY OF FOSTER CITY
___________________________
by
39 Amendment Template Version May 2021 Page | 13
_____________________________
Dated:

ATTEST:
_____________________________
City of Half Moon Bay, Clerk

CITY OF HALF MOON BAY
___________________________
by
40 Amendment Template Version May 2021 Page | 14
_____________________________
Dated:

ATTEST:
_____________________________
Town of Hillsborough, Clerk

TOWN OF HILLSBOROUGH
___________________________
by
41 Amendment Template Version May 2021 Page | 15
_____________________________
Dated:

ATTEST:
_____________________________
City of Menlo Park, Clerk

CITY OF MENLO PARK
___________________________
by
42 Amendment Template Version May 2021 Page | 16
_____________________________
Dated:

ATTEST:
_____________________________
City of Millbrae, Clerk

CITY OF MILLBRAE
___________________________
by
43 Amendment Template Version May 2021 Page | 17
_____________________________
Dated:

ATTEST:
_____________________________
City of Pacifica, Clerk

CITY OF PACIFICA
___________________________
by
44 Amendment Template Version May 2021 Page | 18
_____________________________
Dated:

ATTEST:
_____________________________
Town of Portola Valley, Clerk

TOWN OF PORTOLA VALLEY
___________________________
by
45 Amendment Template Version May 2021 Page | 19
_____________________________
Dated:

ATTEST:
_____________________________
City of Redwood City, Clerk

CITY OF REDWOOD CITY
___________________________
by
46 Amendment Template Version May 2021 Page | 20
_____________________________
Dated:

ATTEST:
_____________________________
City of San Bruno, Clerk

CITY OF SAN BRUNO
___________________________
by
47 Amendment Template Version May 2021 Page | 21
_____________________________
Dated:

ATTEST:
_____________________________
City of San Carlos, Clerk

CITY OF SAN CARLOS
___________________________
by
48 Amendment Template Version May 2021 Page | 22
_____________________________
Dated:

ATTEST:
_____________________________
City of San Mateo, Clerk

CITY OF SAN MATEO
___________________________
by
49 Amendment Template Version May 2021 Page | 23
_____________________________
Dated:

ATTEST:
_____________________________
City of South San Francisco, Clerk

CITY OF SOUTH SAN FRANCISCO
___________________________
by
50 Amendment Template Version May 2021 Page | 24
_____________________________
Dated:

ATTEST:
_____________________________
Town of Woodside, Clerk

TOWN OF WOODSIDE
___________________________
by
51 ESTIMATE - FY 2026-27 ANIMAL CONTROL COSTS
26-27 Year Control rev
less control & licensing
exp less licensing rev
CY 2025 licensing
revenue
TOTAL OF AC&L Rev
less exp
$6,617,109 $1,101,147 $7,718,256
CITY Service Level Service Level Service Level Animals Service Level Estimated Estimated CY 2025 Licensing Revenue Adjusted Percentage Percentage Services Received Percentage 2026-2027 2026-27 Percent Percent Distribution 2026-2027 City Cost
CY 2023 Actual CY 2024 Actual CY2025 CY2025 CY 2025 Actual Before subtracting license
revenue % of total revenue
Licensing Revenue
Collected
Atherton 1.05% 0.94% 1.35% 0.71% 0.97% 0.99% $76,167 1.18% 13,044 $ $63,123Belmont 3.04% 2.79% 3.73% 2.60% 3.07% 2.96% $228,613 4.43% 48,834 $ $179,779Brisbane 0.58% 0.73% 0.94% 0.66% 0.77% 0.69% $53,623 0.64% 6,993 $ $46,630Burlingame 3.95% 3.96% 3.96% 3.81% 3.87% 3.92% $302,910 4.93% 54,310 $ $248,600Colma 0.38% 0.34% 0.72% 0.38% 0.52% 0.41% $31,915 0.17% 1,915 $ $30,000Daly City 9.68% 9.66% 8.59% 10.92% 9.97% 9.77% $753,974 7.44% 81,913 $ $672,061East Palo Alto 9.68% 8.16% 6.55% 11.34% 9.38% 9.07% $700,262 0.96% 10,579 $ $689,683Foster City 2.74% 2.85% 3.72% 2.48% 2.99% 2.86% $220,807 3.86% 42,528 $ $178,279Half Moon Bay 1.96% 1.78% 2.23% 1.04% 1.53% 1.76% $135,513 2.85% 31,336 $ $104,177Hillsborough 1.05% 1.21% 1.61% 0.66% 1.05% 1.10% $85,240 2.45% 26,975 $ $58,265Menlo Park 5.11% 5.50% 5.11% 5.55% 5.37% 5.33% $411,227 3.74% 41,223 $ $370,004Millbrae 2.05% 2.07% 1.73% 2.69% 2.30% 2.14% $165,058 2.80% 30,816 $ $134,242Pacifica 4.16% 4.43% 5.30% 3.59% 4.29% 4.30% $331,607 8.39% 92,424 $ $239,183Portola Valley 0.49% 0.57% 0.97% 0.14% 0.48% 0.51% $39,525 1.48% 16,292 $ $23,233Redwood City 12.19% 11.83% 11.77% 12.31% 12.09% 12.04% $929,037 11.93% 131,347 $ $797,690San Bruno 5.28% 5.60% 4.43% 5.96% 5.33% 5.41% $417,198 5.77% 63,518 $ $353,681San Carlos 2.80% 2.94% 3.61% 2.72% 3.08% 2.94% $226,922 5.52% 60,821 $ $166,101San Mateo 15.03% 15.19% 12.64% 15.86% 14.54% 14.92% $1,151,582 15.27% 168,156 $ $983,426S. San Francisco 8.62% 8.41% 7.86% 9.22% 8.66% 8.56% $660,900 7.45% 82,084 $ $578,816Woodside 1.02% 1.10% 1.34% 0.45% 0.81% 0.98% $75,527 1.40% 15,434 $ $60,093County 9.14% 9.96% 11.83% 6.90% 8.92% 9.34% $720,649 7.32% 80,605 $ $640,044Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% $7,718,256 100.00% $1,101,147 $6,617,109 ESTIMATE - FY 2026-27 Animal Control Costs -
calculating Field @ 41% & Shelter @ 59% over 3 years and using past calendar year license revenue per city as of 4/16/2026
52 TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Sarah Cawrse, Planning & Building Director
DATE: May 27, 2026
RE: Consider Waiving Further Reading and Adopting Ordinance No. 2026-455 Amending the Town Zoning Code (Title 18 of the Portola Valley Municipal Code) to add Chapter 18.25 Standards for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) and Chapter 18.82 Indemnification of Town; and by Amending Section 18.36.040 Accessory Uses and Determining the Project is Exempt Under the California Environmental Quality Act.

RECOMMENDATION
Staff Recommends that the Town Council Waive Further Reading and Adopt Ordinance No. 2026-455 (Attachment 1) Amending the Town Zoning Code (Title 18 of the Portola Valley Municipal Code) to Add Chapter 18.25 Standards for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Unit (JADU) and Chapter 18.82 Indemnification of Town; and by Amending Section 18.36.040 Accessory Uses Determining the Project is Exempt Under the California Environmental Quality Act.

BACKGROUND
On May 13, 2026, the Town Council introduced Ordinance No. 2026-455 amending the Town Zoning Code (Title 18 of the Portola Valley Municipal Code) to Add Chapter 18.25 Standards for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Unit (JADU) and Chapter 18.82 Indemnification of Town; and by Amending Section 18.36.040 Accessory Uses Determining the Project is Exempt Under the California Environmental Quality Act. The Town Council made the motion to approve with several text modifications to the Ordinance, which are reflected in yellow highlighted text in Attachment 2.

The Town occasionally considers amendments to the Town Zoning Code to implement the General Plan, clarify provisions, improve processes, or to codify State law or common and best practices.

The Town's regulations related to emergency shelters, Accessory Dwelling Units and Junior Accessory Dwelling Units are currently not consistent with State law due to recent changes. Additionally, Programs 7-8, and 8-3 of the Town's 2023-2031 Housing Element require the town to update the zoning code to ensure compliance with State ADU law and AB 2339 regarding emergency shelters.

The Town does not currently have codified provisions related to requiring indemnification from an Applicant/Permittee against any claims, actions, or proceedings related to the Town's approval of a permit, which is standard practice amongst local jurisdictions. At the recommendation of the Town Attorney, the Town has drafted standard indemnification language for inclusion in the Zoning Code in a new chapter.

DISCUSSION
This agenda item presents the Town Council with the consideration of waiving further reading and adopting the Ordinance. If adopted by Council, the Ordinance will take effect 30 days thereafter. In addition, as required by state law, staff will send a copy of the ADU ordinance to HCD for review. 53 FISCAL IMPACT
There is no fiscal impact related to the agenda item.

ATTACHMENTS

1. Ordinance

2. Ordinance with Redline of Changes
54 ORDINANCE NO. 2026-455

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF PORTOLA VALLEY AMENDING THE TOWN ZONING CODE (TITLE 18 OF THE PORTOLA VALLEY

MUNICIPAL CODE) TO ADD REGULATIONS RELATED TO ACCESSORY

DWELLING UNITS, JUNIOR ACCESSORY DWELLING UNITS, INDEMNIFICATION OF TOWN, AND EMERGENCY SHELTERS BY ADDING CHAPTER 18.25

STANDARDS FOR ACCESSORY DWELLING UNITS (ADU) AND JUNIOR ACCESSORY DWELLING UNITS (JADU) AND CHAPTER 18.82 INDEMNIFICATION OF TOWN; COST REIMBURSEMENT; AND BY AMENDING SECTION 18.36.040

ACCESSORY USES, AND DETERMINING THE PROJECT IS EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.

WHEREAS, the Town occasionally considers amendments to the Town Zoning Code to implement the General Plan, clarify provisions, improve processes, or to codify State law or common and best practices; and
WHEREAS, the Town’s regulations related to emergency shelters, Accessory Dwelling Units and Junior Accessory Dwelling Units are currently not consistent with State law due to recent changes in State law; and
WHEREAS, the amendments would implement Program 7-8, and Program 8-3 of the Town’s 2023-2031 Housing Element by ensuring the Town is compliant with State ADU law and AB 2339 regarding emergency shelters; and
WHEREAS, the 2023-2031 Housing Element was submitted to the State Department of Housing and Community Development (HCD) for review on January 26, 2024, and HCD notified the Town on January 30, 2024 that they found the Housing Element to be in substantial compliance with State Housing Element Law. It was recertified on May 28, 2025 following Zoning Code amendments to implement the Housing Element; and
WHEREAS, the Town does not currently have codified provisions related to requiring indemnification from an Applicant/Permittee against any claims, actions, or proceedings related to the Town’s approval of a permit, which is standard practice amongst local jurisdictions; and
WHEREAS, at the recommendation of the Town Attorney, the Town has drafted standard indemnification language for inclusion in the Zoning Code in a new chapter; and WHEREAS, on March 20, 2026, notice of the Planning Commission public hearing was published in The Almanac newspaper in compliance with Government Code § 65854; and
WHEREAS, on April 15, 2026, the Planning Commission held a duly noticed public 55 hearing and adopted Resolution 2026-01 recommending the Town Council approve an ordinance amending the Town Zoning Code (Title 18 of the Portola Valley Municipal Code) adding Chapter 18.82 Indemnification of Town; Cost Reimbursement, at which all interested parties has the opportunity to be heard; and WHEREAS, on April 15, 2026, the Planning Commission held a duly noticed public hearing and adopted Resolution 2026-02 recommending the Town Council approve an ordinance amending the Town Zoning Code (Title 18 of the Portola Valley Municipal Code) adding Chapter 18.25 Standards for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) and by amending Section 18.36.040 Accessory Uses, at which all interested parties has the opportunity to be heard; and WHEREAS, on May 1st 2026, notice of the Town Council public hearing was published in The Almanac newspaper in compliance with Government Code § 65090; and
WHEREAS, on May 13th 2026, the Town Council held a duly noticed public hearing, and after considering the entire record of proceedings, including but not limited to, the staff report and all written and oral comments received and the Planning Commission recommendation, the Town Council voted to approved the ordinance. NOW, THEREFORE, the Town Council of the Town of Portola Valley does ORDAIN as follows:

1. RECITALS. The above recitals are true and correct and made a part of this Ordinance.

2. AMENDMENTS TO CODE. The following Chapters of Title 18 [Zoning] are amended as specified in Exhibit A.

CHAPTER 18.25 - Standards for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU)
CHAPTER 18.36 - Uses Permitted in All Districts
CHAPTER 18.82 – Indemnification of Town; Cost Reimbursement

3. CONSISTENCY WITH GENERAL PLAN. This ordinance is found to be consistent with the General Plan of Portola Valley.

4. ENVIRONMENTAL REVIEW. The proposed amendments to repeal section

18.36.040(B) and Add Chapter 18.25 are exempt from environmental review per the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines § 15282(h), as well as Public Resources Code § 21080.17, which provides a statutory exemption for ordinances regarding ADUs and JADUs in a single-family or multifamily residential zone to implement Government Code § 66310 et seq.

Additionally, for the proposed amendments to Section 18.36.040(A)(12) adding regulations related to emergency shelters, The Town, as lead agency under the California Environmental Quality Act (“CEQA”), prepared an Initial Study/Mitigated Negative Declaration (IS/MND) for the Housing Element and circulated it for public review. On March 29, 2023, the Town Council conducted a public hearing on the IS/MND and 56 adopted Resolution No. 2922- 2023 adopting the IS/MND, the Updated Response to Comments and Text Changes, and the Mitigation Monitoring and Reporting Program (MMRP) (as updated at the March 22 and 29, 2023 public hearings). None of the implementing zoning code text amendments require subsequent or supplemental environmental analysis under CEQA, as described in Public Resources Code Section 21166 and CEQA Guidelines Section 15162. None of the following triggers have occurred: a substantial change to the project; a substantial change to the circumstances under which the project is being undertaken, or new information, which was not known and could not have been known at the time the environmental analysis was completed, becomes available. Therefore, the IS/MND adopted on March 29, 2023 remains valid.

Further, the proposed amendments to add Chapter 18.82 has been determined to be exempt from the provisions of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility the project will have a significant effect on the environment. The proposed amendment has no potential for environmental impact and is appropriately used for policies, programs, or administrative actions that do not involve physical changes to the environment.

5. FINDING. The proposed zoning code amendment is in conformance with the general plan. Programs 7-8, and 8-3 of the Town’s 2023-2031 Housing Element require the town to update the zoning code to ensure compliance with State ADU law and AB 2339 regarding emergency shelters. The proposed amendments are a public necessity and ensure the general welfare of the community by complying with State law providing for a standard indemnification policy for all land use permits

6. CONSISTENCY WITH STATE LAW. This ordinance is intended to be consistent with State law and to the extent there is any inconsistency with such State law requirements, State law shall control.

7. SEVERABILITY. If any section, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The Town Council hereby declares that it would have passed this Ordinance and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

8. APPROVAL. The Town Council hereby approves the amendments to the Town Zoning Code (Title 18 of the Portola Valley Municipal Code), as described above and as shown in Exhibit A, which is attached hereto and incorporated herein by reference

9. EFFECTIVE DATE; POSTING. This ordinance shall become effective 30 days after the date of its adoption and shall be posted within the Town in three public places.

INTRODUCED on the 13th day of May, 2026
57 PASSED, APPROVED AND ADOPTED as an ordinance of the Town of Portola Valley at a regular meeting of said Council on the _____ day of ________, 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSTENTIONS: Councilmembers:

ABSENT: Councilmembers:

ATTEST APPROVED
__________________________ __________________________
Veronica Dao, Town Clerk Craig Taylor, Mayor
Exhibit A: Zoning Code Amendments
58 Exhibit A

CHAPTER 18.25 - STANDARDS FOR ACCESSORY DWELLING UNITS (ADU) AND JUNIOR

ACCESSORY DWELLING UNITS (JADU)

18.25.010 - Purpose and Intent.

The purpose of this chapter is to implement Government Code Sections 66310 through 66342 by allowing the creation of accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs) through ministerial review. In the event of any conflict or discrepancy between the ADU or JADU standards in this chapter and any other provisions of this title, the standards contained in this chapter shall take precedence. Ambiguities or gaps in this chapter shall be resolved first by reference to Government Code Sections 66310 through 66342. In the event of any conflict between State law and this chapter, Government Code Sections 66310 through 66342 shall govern.

18.25.020 - Definitions.

For the purposes of this chapter the definitions as described in California Government Code Section 66313, or as amended shall apply.

18.25.030 - Administration and Permitting Process.

A. Building Permit Required. All ADUs or JADUs, including those that are internal to an existing structure and converted from existing floor area, shall be subject to a building permit.

B. Permitting Procedure.

1. Ministerial Review. A permit application for an ADU or JADU shall be processed ministerially, without discretionary review or a hearing.

2. Completeness Determination. A permit application for an ADU or JADU shall be determined to be complete or incomplete and a written notice of the determination provided not later than 15 business days after receiving the application. If the Town determines that an application is incomplete, the Town will provide the applicant with a list of incomplete items and a description of how the application can be made complete in the written notice. If a permit application is determined to be incomplete or is denied, the applicant may appeal that decision. After receipt of the appeal, the Town shall provide a final written determination within 60 business days.

3. Review Period.
i. ADU on a Lot with an Existing Dwelling. If there is an existing single-family or multifamily dwelling on a lot, a permit application for an ADU or JADU shall either be denied or approved within 60 days of receipt of a complete application. ii. ADU Accompanying Application for a New Primary Dwelling. If a permit application to create an ADU or JADU is submitted with a permit application to create a new 59 Exhibit A

single-family or multifamily dwelling on a lot, the Town may delay approving or denying the permit application for the ADU or JADU until the Town approves or denies the permit application to create the new single-family or multifamily dwelling; however, the application to create the ADU or JADU shall be considered without discretionary review or hearing.
iii. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay.

4. Deemed Approved. If a complete application is not approved or denied within 60 days of receipt of a complete application, the application shall be deemed approved.

5. Denied Applications. If an application for an ADU or JADU is denied within 60 days of receipt of a complete application, the Town shall return in writing a full set of comments to the applicant with a list of items that are defective or deficient, and a description of how the application can be remedied.

6. Nonconforming Conditions. No application for a permit to create an ADU or JADU shall be denied due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that:
i. Do not present a threat to public health and safety; and ii. Are not affected by the construction of the ADU or JADU.

18.25.040 – General Development and Operational Standards A. Fire Sprinklers. ADUs and JADUs shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. The construction of an ADU or JADU shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling or existing multi-family dwelling.

B. Short-Term Rental Limitation. ADUs and JADUs shall not be rented for a term of less than 30 days.

C. Replacement Parking. Replacement parking shall not be required when a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU or JADU or converted to an ADU or JADU. A demolition permit for a detached garage to be replaced with an ADU or JADU shall be reviewed and issued concurrently with the ADU or JADU permit application.

D. Separate Sale. Except as permitted by Government Code Section 66341, as the same may be amended from time to time, ADUs shall not be sold or conveyed separately from the primary dwelling.

E. Utility Connection.

1. Availability of Utilities. All ADUs shall be connected to public utilities or their equivalent including water, electricity, and sewer services. In the case of well water systems and 60 Exhibit A

septic systems the applicant must demonstrate that they are adequately sized for the new demand. Utility connections are subject to review and approval by the appropriate utility agency.

2. ADUs using a private sewage disposal system shall obtain approval by the local health officer.

3. ADUs constructed pursuant to paragraph (1) of subdivision (a) of Government Code section 66323 shall not be required to install a new or separate utility connection directly between the ADU and the utility, unless the ADU was constructed with a new single-family residence, or upon separate conveyance of the ADU pursuant to Government Code Section 66342. For all other ADUs the service provider may require a new or separate utility connection directly between the ADU and the utility.

4. JADUs shall not be required to install a new or separate utility connections.

5. Except for ADUs permitted pursuant to Government Code Section 66323, when a new or separate utility connection directly between the ADU and the utility is proposed, the utility connection shall be placed underground consistent with Section 18.36.010.B, F. Separate Entrance. ADUs and JADUs shall provide at least one exterior entrance that is separate from the main entrance of the primary dwelling.

G. Separate Address. ADUs and JADUs shall provide a separate address from the primary dwelling, except for JADUs which have an interior entry to the main living area of the singlefamily residence.

H. Public Health and Safety. Nothing in this code shall be construed as overriding any provision of state law allowing denial of an ADU for impacts to public health and safety.

18.25.050 – Fee Requirements
A. Connection Fees or Capacity Charges. An ADU shall not be considered a new residential use for the purposes of calculating connection fees or capacity charges for utilities, including water and sewer service, unless the ADU was constructed with a new single-family dwelling.

These fees are assessed by the utility agency.

B. Impact Fees. Impact fees shall not be imposed on an ADU that is less than 750 square feet in interior livable space. For all other ADUs, impact fees shall be charged proportionate to the square footage of the primary dwelling unit. Impact fees shall not be imposed on a JADU.

C. School Fees. Consistent with Section 17620 of the Education Code, an accessory dwelling unit or junior accessory dwelling unit that contains less than 500 square feet of interior livable space shall, be considered other residential construction that does not increase assessable space by 500 square feet. These fees are assessed by the school district. 61 Exhibit A

18.25.060 - Accessory Dwelling unit (ADU) Regulations
A. General Plan and Zoning.

1. Residential Use. ADUs approved in compliance with this chapter shall be considered a residential use that is consistent with the existing general plan and zoning designation for the lot.

2. Permitted Locations. ADUs are permitted on lots with an existing or proposed singlefamily or multifamily dwelling in areas zoned to allow single-family or multifamily residential use.

3. Density. ADUs shall not count toward the maximum density permitted on the lot.

B. ADU Typology. ADUs shall be either (i) attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas or similar uses or an accessory structure; or (ii) detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling, including detached garages.

C. Objective Standards.

1. Single-Family ADUs.
i. The following accessory units shall be ministerially approved on a lot with a singlefamily dwelling:
a. One (1) ADU within the proposed space of a single-family dwelling or existing space of a single-family dwelling or existing accessory structure that may include an expansion of not more than 150 square feet for ingress/egress; and b. One (1) detached, new construction, ADU of not more than 800 square feet of interior livable space that does not exceed four-foot side and rear yard setbacks and that meets the height requirements of this chapter. ii. One (1) ADU that does not meet the criteria of subsection (i) above may be ministerially approved if it meets the objective standards contained in this chapter, except that the minimum or maximum size for an ADU or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings, shall not be imposed if they preclude a unit authorized by Government Code section 66321(b)(3) from being constructed in compliance with all other local development standards.

2. Multifamily ADUs.
i. The following units shall be ministerially permitted on a lot with a multifamily dwelling:
a. Conversion ADUs. A minimum of one (1) ADU and a maximum of 25-percent of the total number of existing multifamily dwelling units shall be permitted to be converted from existing multifamily dwelling structures that are not used as 62 Exhibit A

livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with the State building standards for dwellings.
b. Detached ADUs.
(1) Existing Multifamily Dwelling. On a lot with an existing multifamily dwelling, not more than eight (8) detached ADUs shall be permitted. The number of ADUs shall not exceed the number of existing multifamily units on the lot. An ADU subject to this provision shall meet the height requirements of this chapter.
(2) Proposed Multifamily Dwelling. On a lot with a proposed multifamily dwelling, not more than two (2) detached ADUs shall be permitted. An ADU subject to this provision shall meet the height requirements of this chapter.

3. Size. Except for ADUs permitted pursuant to Government Code Section 66323, the maximum allowable square footage for ADUs shall not exceed the area limitations specified below. For the purposes of this section, the calculation of ADU square footage shall not include garages, carports, covered porches/patios, breezeways, and/or other accessory structures.
i. Existing Floor Area. ADUs converted from existing floor area shall not be subject to any size limitations.
ii. New Floor Area.
a. Attached and Detached ADUs. ADUs created from new floor area shall not exceed 1,200 square feet of interior livable space. Multifamily ADUs consistent with Government Code Section 66323 shall not be subject to the size limitation of this section.

4. Adjusted Maximum Floor Area (AMFA), Lot Coverage, Floor Area Ratio (FAR) and Coverage Area Ratio (CAR).
i. ADUs count towards and shall not exceed the AMFA, lot coverage, FAR or CAR for the subject parcel. However, this shall not prohibit the ministerial approval of ADUs constructed pursuant to Government Code Section 66323 and in compliance with all other local development standards. Development of the site may exceed the AMFA, lot coverage, FAR, or CAR by the minimum amount necessary to allow such an ADU.

5. Height.
i. Existing Floor Area. ADUs converted from existing floor area shall not be subject to height limitations.
ii. New Floor Area.
63 Exhibit A

a. Attached ADUs. Attached ADUs created from new floor area shall not exceed a height of 25 feet or the maximum height permitted in the underlying zoning district, whichever is lower. In all cases, ADUs shall not exceed two stories. b. Detached ADUs. Detached ADUs created from new floor area, on a lot with an existing or proposed single family or multifamily dwelling unit, shall not exceed a height of 16 feet, or a height of 18 feet if either of the following conditions are met:
(1) Transit Proximity. The lot on which the ADU will be created is within one-half mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Public Resources Code Section 21155. (2) Multifamily, Multistory Structure. The lot on which the ADU will be created consists of an existing or proposed multifamily, multistory dwelling.

An additional height of two feet, for a maximum height of either 18 or 20 feet, shall be allowed to accommodate a roof pitch on an ADU that is aligned with the roof pitch of the primary dwelling unit.

6. Setbacks.
i. Existing Floor Area. ADUs located within an existing living area or an existing accessory structure, or ADUs that replace an existing structure and are in the same location and to the same dimensions as the structure being replaced, shall not be subject to setbacks.
ii. New Floor Area. ADUs created from new floor area are subject to the following setbacks:
a. Front Yard. Same as the underlying district, including required Scenic Corridor setbacks. No front setback is required for ADUs permitted per Government Code Section 66323.
b. Side Yard. A minimum of four (4) feet.
c. Rear Yard. A minimum of four (4) feet.

7. Parking.
i. Parking shall not be required for ADUs.
ii. If parking is provided, parking space design shall conform with Section 18.60.020, Parking Dimensions and Access.

8. Site improvements. Site improvements, including grading, driveways, patios, decks, etc., outside the minimum necessary to facilitate the construction of an ADU pursuant to Government Code Section 66323 shall be subject to the requirements and permitting processes of the underlining zoning district for such improvements.

9. Objective Design Standards. ADUs (except those created pursuant to Government Code Section 66323) shall comply with the following Objective Design Standards. ADUs created 64 Exhibit A

pursuant to Government Code Section 66323 are encouraged, but not required, to comply with the Objective Design Standards of this section. i. Light reflectivity Values (LRV) – The LRV of proposed colors shall not exceed 40 percent, except that trim color and roofs shall not exceed 50 percent. ii. Exterior Lighting – All exterior lighting shall comply with all requirements listed in Section 18.36.040.A.8 Outdoor lighting, except that the primary entrance of the ADU may have one or two fixtures, which shall be limited to a total lumen count of seven hundred lumens.
iii. Landscaping – Proposed landscaping plantings shall be selected from the town’s approved native plants list.

D. Building Code Requirements. ADUs must comply with the Town’s building code requirements for detached dwellings. However, constructing an ADU does not constitute a Group R occupancy change under Section 310 of the California Building Code (Title 24), unless the Building Official issues a written finding, supported by substantial evidence, that the construction poses a specific, adverse impact on public health and safety. This provision shall not prevent the Town from changing the occupancy code for space converted from uninhabitable or non-residential use to residential use.

E. Passageway. No passageway shall be required in conjunction with the construction of an ADU.

18.25.070 - Junior Accessory Dwelling unit (JADU)
A. Permitted Locations. JADUs shall be permitted in single-family residential zones.

B. Number of JADUs. The following accessory units shall be ministerially approved on a lot with a single-family dwelling. This is in addition to the ADUs allowed per Section 18.25.060.

1. One (1) JADU within the proposed space of a single-family dwelling or existing space of a single-family dwelling that may include an expansion of not more than 150 square feet for ingress/egress.

C. Size. JADUs shall be limited to a maximum size of 500 square feet of interior livable space.

D. Owner Occupancy. Owner occupancy is required if the JADU has shared sanitation facilities with the primary dwelling. The owner may reside in either the JADU or the primary dwelling unit. Owner-occupancy is not required if the JADU has separate sanitation facilities from the primary dwelling unit or if the owner is another governmental agency, land trust, or housing organization.

E. Deed Restriction. A deed restriction, which shall run with the land, shall be filed with the Town. The deed restriction shall include:
65 Exhibit A

1. A prohibition on the sale of the JADU separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers; and

2. A restriction on the size and attributes of the JADU that conforms with Government Code Sections 66333 – 66339.

F. Interior Entry. In addition to a separate exterior entrance, JADUs that do not include a bathroom shall include an interior entry to the main living area of the single-family residence.

G. Efficiency Kitchen. JADUs shall provide an efficiency kitchen that includes all of the following:

1. A cooking facility with appliances.

2. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.

H. Parking. Parking shall not be required for a JADU.

I. New or Separate Unit. JADUs shall not be considered a separate or new dwelling unit for the purposes of any fire and life protection ordinance or regulation.

CHAPTER 18.36 - USES PERMITTED IN ALL DISTRICTS
All other sections remain the same.

18.36.040 - Accessory uses.

A. An accessory use is a related minor use which is either (a) necessary to the operation or enjoyment of a lawful principal use or conditional use, or (b) appropriate, incidental and subordinate to any such use. No use in any district shall be permitted as an accessory use which is not qualified as hereinabove set forth, or which constitutes in effect a conversion of a principal use to one not permitted in that district. This section shall apply to new construction and replacement fixtures. In addition to other uses meeting the qualifications set forth in this section, and subject to the limitations set forth in this title, the following accessory uses are permitted in all districts when located on the same parcel as the principal use:

1. The installation and operation of necessary facilities and equipment in connection with such schools and other institutions as are permitted in the respective district;

2. Recreation, refreshment and service buildings in public parks;

3. Required off-street parking spaces and required off-street loading spaces as regulated by this title;

4. Fences and walls subject to the height and area regulations of this title;

5. Hedges, trees, shrubs and other ornamental planting; 66 Exhibit A

6. Horticulture;

7. Electric and communication service lines provided that all such lines are placed underground except where exempted in accordance with the procedure set forth in subsection B of Section 18.36.010;

8. Outdoor Illumination.
i. Purpose. The purpose of this subsection is to provide clear regulations regarding allowable outdoor lighting. The town's general plan states: "Night lighting visible from the exterior of buildings should be strictly limited to that necessary for security, safety and identification. All night lighting, including signs, should be low intensity and shielded from view from residential areas." This chapter aims to provide regulations for outdoor lighting that will:
a. Permit the use of outdoor lighting that does not exceed the minimum necessary for night-time safety, utility, security, and enjoyment. b. Minimize adverse offsite impacts of lighting such as light trespass and obtrusive light.
c. Curtail light pollution, reduce skyglow and improve the nighttime environment for astronomy and star gazing in keeping with the dark sky movement.
d. Help protect the natural environment from the adverse effects of night lighting.
e. Conserve energy and resources to the greatest extent possible. ii. Definitions.
a. Brightness shall be measured in lumens.
b. Dark sky compliant fixture or equivalent shall mean a light fixture from which all light emitted directly or indirectly, is projected below a horizontal plane.
c. Flood lighting shall mean any fixture which lights a large area, as opposed to an individual feature such as a step, path or doorway.
d. Manual switch shall mean any light requiring a physical action to control, whether by hardwires at the property, phone or computer application, or other technology.
e. Motion-sensor shall mean any light control which is trigged by motion. f. Photo-cell shall mean a light-sensitive control that switches lights on or off depending on the level of outdoor light.
g. Timer shall mean any device which controls the hours or amount of time that a light fixture is illuminated.
67 Exhibit A

iii. Applicability. All outdoor lighting installed after the date of effect of this ordinance shall comply with these requirements. This includes, but is not limited to, new lighting, replacement lighting, or any other lighting whether attached to structures, poles, the earth, or any other location. These regulations are meant to apply only to the visible light spectrum.
a. Exceptions.

1. Lighting for signs shall be regulated by Chapter 18.40, Signs.

2. Holiday lighting, including in trees, for up to sixty total days per calendar year.
iv. Lighting Placement.
a. Exterior doors shall have one fixture each.
b. Garage doors may have one or two fixtures, which shall be limited to a total lumen count of one thousand one hundred twenty-five lumens. c. Low path, step and wall lights for safety and navigation purposes for pedestrian and other non-vehicular uses.
d. Lighting for exterior patios and dining areas shall be recessed and shielded from off-site visibility.
v. Fixture Type. All outdoor lighting fixtures shall be dark sky compliant or equivalent specifically, they shall include the following elements:
a. Shield directing light downward;
b. Bulb not protruding below horizontal plane at bottom of shield; c. Light spill limited to the object to be illuminated; d. Fixtures shall not have ability to swivel or adjust direction, except path lighting, which shall not swivel above a forty-five-degree angle from a vertical line down.
vi. Lighting Control. Lighting controls and technologies shall be implemented to the effect that outdoor lights are on only when needed and never during daylight.

Controls shall function with dark sky compliant fixtures. Current technologies include manual switches, photo-cells, timers, and motion sensors. Any combination of these technologies may be used, with the following limitations:
a. Motion-sensor lights shall be triggered only by motion within a property and shall not be activated by motion in adjacent property or rights-of-way. b. Photo-cells shall be used only to ensure lighting is off during the day, as opposed to on a night.
c. Timers shall be included on all motion-sensor lights to ensure that illumination is limited. Timers shall be used only to turn lights off, not on. 68 Exhibit A

d. Lights shall self-extinguish within two minutes of being illuminated. vii. Prohibited Lighting. The following lighting types and systems are prohibited from being installed or used:
a. Up-lighting;
b. Lighting for night use of uncovered game courts, including tennis, paddle tennis, basketball, riding rings, and similar outdoor recreation facilities and areas;
c. Aerial lasers and other focused beams;
d. Flood lights or lighting;
e. Searchlights;
f. Lighting with no on/off switch or ability to be controlled; g. Any permanent or temporary lighting in which any single light source exceeds one thousand one hundred twenty-five lumens.
h. Festoon, cafe, or any other string of exposed blubs. viii. Lighting Requiring ASCC Approval. The following light fixtures, placements, or types are generally discouraged and require ASCC approval in order to be installed:
a. Lighting for landscaping, trees or structures, including entryway features, pillars and posts;
b. Commercial parking lighting.

9. Septic tanks and drain fields;

10. Antennas designed to receive television or microwave signals transmitted from satellite or terrestrial stations. Antennas with diameters exceeding four feet are subject to review by the architectural and site control commission as provided for by paragraph 6 of subsection A of Section 18.64.010.

11. Tennis courts and paddle tennis courts, provided the sum of the maximum depth of cut and maximum height of fill for such facilities shall not exceed the following:

Parcel Area Combined Cut and Fill Feet

1.0 ac. or less 8

1.2 ac. 9

1.4 ac. 10

1.6 ac. 11

1.8 ac. or more 12
69 Exhibit A

12. Emergency shelters for up to ten individuals only when located on a parcel with a conditional use for a religious institution, subject to a zoning permit. Emergency shelters shall comply with the following standards:
i. Temporary shelter shall be available to residents for no more than sixty days.

Extensions up to a total stay of one hundred eighty days may be permissible if no alternative housing is available.
ii. On-site management shall be provided during the hours of shelter operation. iii. Emergency shelters may include common space for the exclusive use of the guests, and office and meeting space for the exclusive use of emergency shelter staff.
iv. Each shelter shall have a designated outdoor smoking area that is not visible from the street or from adjacent properties. The outdoor smoking area may be screened by vegetation.
v. On-site parking may be provided as shared parking with the church use. If separate on-site parking is needed, the maximum amount required shall be 0.35 parking spaces per one bed plus one space per staff member on duty when guests are present.

CHAPTER 18.82 – INDEMNIFICATION OF TOWN

18.82.010 – Applicability
An Applicant who applies for a permit or entitlement for development or any successor in interest (“Applicant”) shall, as a condition of such application and process, be subject to the indemnification requirements set forth in this chapter.

18.82.020 – Indemnity Required
The Applicant shall defend (with counsel of the Town’s choosing), indemnify, and hold harmless the Town, its agents, officers, and employees from and against:

A. Any and all claims, demands, actions or proceedings against the Town, its agents, officers, and employees to attack, set aside, void, or annul approval of any permit or arising out of or in any way relating to any actions taken by the Town related to approval of a project; and B. Any and all claims, demands, actions, expenses or liabilities arising from, or in any manner relating to, construction, installation, alteration or grading work (whether on private or public property) which is the subject of a permit approval and performed by such Applicant or by any person acting on behalf of such Applicant.

The Applicant’s duty under this section shall not apply to the extent such claims arise out of the sole negligence or willful misconduct of the Town, its agents, officers, and employees. 70 Exhibit A

18.82.030 – Cooperation and Notification
The Town shall promptly notify the Applicant of any claim, action, or proceeding regarding the project and the parties shall cooperate fully in the defense of such claim, action, or proceeding.

18.82.040 – Proof of Coverage Required
The Town may require proof of a policy or policies of liability and other insurance coverage (including, but not limited to, contractual liability coverage) consistent with the applicable insurance standards of the Town.
71 ORDINANCE NO. 2026-455

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF PORTOLA VALLEY AMENDING THE TOWN ZONING CODE (TITLE 18 OF THE PORTOLA VALLEY

MUNICIPAL CODE) TO ADD REGULATIONS RELATED TO ACCESSORY

DWELLING UNITS, JUNIOR ACCESSORY DWELLING UNITS, INDEMNIFICATION OF TOWN, AND EMERGENCY SHELTERS BY ADDING CHAPTER 18.25

STANDARDS FOR ACCESSORY DWELLING UNITS (ADU) AND JUNIOR ACCESSORY DWELLING UNITS (JADU) AND CHAPTER 18.82 INDEMNIFICATION OF TOWN; COST REIMBURSEMENT; AND BY AMENDING SECTION 18.36.040

ACCESSORY USES, AND DETERMINING THE PROJECT IS EXEMPT UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT.

WHEREAS, the Town occasionally considers amendments to the Town Zoning Code to implement the General Plan, clarify provisions, improve processes, or to codify State law or common and best practices; and
WHEREAS, the Town’s regulations related to emergency shelters, Accessory Dwelling Units and Junior Accessory Dwelling Units are currently not consistent with State law due to recent changes in State law; and
WHEREAS, the amendments would implement Program 7-8, and Program 8-3 of the Town’s 2023-2031 Housing Element by ensuring the Town is compliant with State ADU law and AB 2339 regarding emergency shelters; and
WHEREAS, the 2023-2031 Housing Element was submitted to the State Department of Housing and Community Development (HCD) for review on January 26, 2024, and HCD notified the Town on January 30, 2024 that they found the Housing Element to be in substantial compliance with State Housing Element Law. It was recertified on May 28, 2025 following Zoning Code amendments to implement the Housing Element; and
WHEREAS, the Town does not currently have codified provisions related to requiring indemnification from an Applicant/Permittee against any claims, actions, or proceedings related to the Town’s approval of a permit, which is standard practice amongst local jurisdictions; and
WHEREAS, at the recommendation of the Town Attorney, the Town has drafted standard indemnification language for inclusion in the Zoning Code in a new chapter; and WHEREAS, on March 20, 2026, notice of the Planning Commission public hearing was published in The Almanac newspaper in compliance with Government Code § 65854; and
WHEREAS, on April 15, 2026, the Planning Commission held a duly noticed public 72 hearing and adopted Resolution 2026-01 recommending the Town Council approve an ordinance amending the Town Zoning Code (Title 18 of the Portola Valley Municipal Code) adding Chapter 18.82 Indemnification of Town; Cost Reimbursement, at which all interested parties has the opportunity to be heard; and WHEREAS, on April 15, 2026, the Planning Commission held a duly noticed public hearing and adopted Resolution 2026-02 recommending the Town Council approve an ordinance amending the Town Zoning Code (Title 18 of the Portola Valley Municipal Code) adding Chapter 18.25 Standards for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU) and by amending Section 18.36.040 Accessory Uses, at which all interested parties has the opportunity to be heard; and WHEREAS, on May 1st 2026, notice of the Town Council public hearing was published in The Almanac newspaper in compliance with Government Code § 65090; and
WHEREAS, on May 13th 2026, the Town Council held a duly noticed public hearing, and after considering the entire record of proceedings, including but not limited to, the staff report and all written and oral comments received and the Planning Commission recommendation, the Town Council voted to approved the ordinance. NOW, THEREFORE, the Town Council of the Town of Portola Valley does ORDAIN as follows:

1. RECITALS. The above recitals are true and correct and made a part of this Ordinance.

2. AMENDMENTS TO CODE. The following Chapters of Title 18 [Zoning] are amended as specified in Exhibit A.

CHAPTER 18.25 - Standards for Accessory Dwelling Units (ADU) and Junior Accessory Dwelling Units (JADU)
CHAPTER 18.36 - Uses Permitted in All Districts
CHAPTER 18.82 – Indemnification of Town; Cost Reimbursement

3. CONSISTENCY WITH GENERAL PLAN. This ordinance is found to be consistent with the General Plan of Portola Valley.

4. ENVIRONMENTAL REVIEW. The proposed amendments to repeal section

18.36.040(B) and Add Chapter 18.25 are exempt from environmental review per the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines § 15282(h), as well as Public Resources Code § 21080.17, which provides a statutory exemption for ordinances regarding ADUs and JADUs in a single-family or multifamily residential zone to implement Government Code § 66310 et seq.

Additionally, for the proposed amendments to Section 18.36.040(A)(12) adding regulations related to emergency shelters, The Town, as lead agency under the California Environmental Quality Act (“CEQA”), prepared an Initial Study/Mitigated Negative Declaration (IS/MND) for the Housing Element and circulated it for public review. On March 29, 2023, the Town Council conducted a public hearing on the IS/MND and 73 adopted Resolution No. 2922- 2023 adopting the IS/MND, the Updated Response to Comments and Text Changes, and the Mitigation Monitoring and Reporting Program (MMRP) (as updated at the March 22 and 29, 2023 public hearings). None of the implementing zoning code text amendments require subsequent or supplemental environmental analysis under CEQA, as described in Public Resources Code Section 21166 and CEQA Guidelines Section 15162. None of the following triggers have occurred: a substantial change to the project; a substantial change to the circumstances under which the project is being undertaken, or new information, which was not known and could not have been known at the time the environmental analysis was completed, becomes available. Therefore, the IS/MND adopted on March 29, 2023 remains valid.

Further, the proposed amendments to add Chapter 18.82 has been determined to be exempt from the provisions of the California Environmental Quality Act (CEQA) per CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility the project will have a significant effect on the environment. The proposed amendment has no potential for environmental impact and is appropriately used for policies, programs, or administrative actions that do not involve physical changes to the environment.

5. FINDING. The proposed zoning code amendment is in conformance with the general plan. Programs 7-8, and 8-3 of the Town’s 2023-2031 Housing Element require the town to update the zoning code to ensure compliance with State ADU law and AB 2339 regarding emergency shelters. The proposed amendments are a public necessity and ensure the general welfare of the community by complying with State law providing for a standard indemnification policy for all land use permits

6. CONSISTENCY WITH STATE LAW. This ordinance is intended to be consistent with State law and to the extent there is any inconsistency with such State law requirements, State law shall control.

7. SEVERABILITY. If any section, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The Town Council hereby declares that it would have passed this Ordinance and adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.

8. APPROVAL. The Town Council hereby approves the amendments to the Town Zoning Code (Title 18 of the Portola Valley Municipal Code), as described above and as shown in Exhibit A, which is attached hereto and incorporated herein by reference

9. EFFECTIVE DATE; POSTING. This ordinance shall become effective 30 days after the date of its adoption and shall be posted within the Town in three public places.

INTRODUCED on the 13th day of May, 2026
74 PASSED, APPROVED AND ADOPTED as an ordinance of the Town of Portola Valley at a regular meeting of said Council on the _____ day of ________, 2026, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSTENTIONS: Councilmembers:

ABSENT: Councilmembers:

ATTEST APPROVED
__________________________ __________________________
Veronica Dao, Town Clerk Craig Taylor, Mayor
Exhibit A: Zoning Code Amendments
75 Exhibit A

CHAPTER 18.25 - STANDARDS FOR ACCESSORY DWELLING UNITS (ADU) AND JUNIOR

ACCESSORY DWELLING UNITS (JADU)

18.25.010 - Purpose and Intent.

The purpose of this chapter is to implement Government Code Sections 66310 through 66342 by allowing the creation of accessory dwelling units (ADUs) or junior accessory dwelling units (JADUs) through ministerial review. In the event of any conflict or discrepancy between the ADU or JADU standards in this chapter and any other provisions of this title, the standards contained in this chapter shall take precedence. Ambiguities or gaps in this chapter shall be resolved first by reference to Government Code Sections 66310 through 66342. In the event of any conflict between State law and this chapter, Government Code Sections 66310 through 66342 shall govern.

18.25.020 - Definitions.

For the purposes of this chapter the definitions as described in California Government Code Section 66313, or as amended shall apply.

18.25.030 - Administration and Permitting Process.

A. Building Permit Required. All ADUs or JADUs, including those that are internal to an existing structure and converted from existing floor area, shall be subject to a building permit.

B. Permitting Procedure.

1. Ministerial Review. A permit application for an ADU or JADU shall be processed ministerially, without discretionary review or a hearing.

2. Completeness Determination. A permit application for an ADU or JADU shall be determined to be complete or incomplete and a written notice of the determination provided not later than 15 business days after receiving the application. If the Town determines that an application is incomplete, the Town will provide the applicant with a list of incomplete items and a description of how the application can be made complete in the written notice. If a permit application is determined to be incomplete or is denied, the applicant may appeal that decision. After receipt of the appeal, the Town shall provide a final written determination within 60 business days.

3. Review Period.
i. ADU on a Developed Lot with an Existing Dwelling. If there is an existing single-family or multifamily dwelling on a lot, a permit application for an ADU or JADU shall either be denied or approved within 60 days of receipt of a complete application. ii. Undeveloped Lot ADU Accompanying Application for a New Primary Dwelling. If a permit application to create an ADU or JADU is submitted with a permit application 76 Exhibit A

to create a new single-family or multifamily dwelling on a lot, the Town may delay approving or denying the permit application for the ADU or JADU until the Town approves or denies the permit application to create the new single-family or multifamily dwelling; however, the application to create the ADU or JADU shall be considered without discretionary review or hearing.
iii. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay.

4. Deemed Approved. If a complete application is not approved or denied within 60 days of receipt of a complete application, the application shall be deemed approved.

5. Denied Applications. If an application for an ADU or JADU is denied within 60 days of receipt of a complete application, the Town shall return in writing a full set of comments to the applicant with a list of items that are defective or deficient, and a description of how the application can be remedied.

6. Nonconforming Conditions. No application for a permit to create an ADU or JADU shall be denied due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that:
i. Do not present a threat to public health and safety; and ii. Are not affected by the construction of the ADU or JADU.

18.25.040 – General Development and Operational Standards A. Fire Sprinklers. ADUs and JADUs shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. The construction of an ADU or JADU shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling or existing multi-family dwelling.

B. Short-Term Rental Limitation. ADUs and JADUs shall not be rented for a term of less than 30 days.

C. Replacement Parking. Replacement parking shall not be required when a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU or JADU or converted to an ADU or JADU. A demolition permit for a detached garage to be replaced with an ADU or JADU shall be reviewed and issued concurrently with the ADU or JADU permit application.

D. Separate Sale. Except as permitted by Government Code Section 66341, as the same may be amended from time to time, ADUs shall not be sold or conveyed separately from the primary dwelling.

E. Utility Connection.

1. Availability of Utilities. All ADUs shall be connected to public utilities or their equivalent including water, electricity, and sewer services. In the case of well water systems and 77 Exhibit A

septic systems the applicant must demonstrate that they are adequately sized for the new demand. Utility connections are subject to review and approval by the appropriate utility agency.

2. ADUs using a private sewage disposal system shall obtain approval by the local health officer.

3. ADUs constructed pursuant to paragraph (1) of subdivision (a) of Government Code section 66323 shall not be required to install a new or separate utility connection directly between the ADU and the utility, unless the ADU was constructed with a new single-family residence, or upon separate conveyance of the ADU pursuant to Government Code Section 66342. For all other ADUs the service provider may require a new or separate utility connection directly between the ADU and the utility.

4. JADUs shall not be required to install a new or separate utility connections.

5. Except for ADUs permitted pursuant to Government Code Section 66323, when a new or separate utility connection directly between the ADU and the utility is proposed, the utility connection shall be placed underground consistent with Section 18.36.010.B, F. Separate Entrance. ADUs and JADUs shall provide at least one exterior entrance that is separate from the main entrance of the primary dwelling.

G. Separate Address. ADUs and JADUs shall provide a separate address from the primary dwelling, except for JADUs which have an interior entry to the main living area of the singlefamily residence.

H. Public Health and Safety. Nothing in this code shall be construed as overriding any provision of state law allowing denial of an ADU for impacts to public health and safety.

18.25.050 – Fee Requirements
A. Connection Fees or Capacity Charges. An ADU shall not be considered a new residential use for the purposes of calculating connection fees or capacity charges for utilities, including water and sewer service, unless the ADU was constructed with a new single-family dwelling.

These fees are assessed by the utility agency.

B. Impact Fees. Impact fees shall not be imposed on an ADU that is less than 750 square feet in interior livable space. For all other ADUs, impact fees shall be charged proportionate to the square footage of the primary dwelling unit. Impact fees shall not be imposed on a JADU.

C. School Fees. Consistent with Section 17620 of the Education Code, an accessory dwelling unit or junior accessory dwelling unit that contains less than 500 square feet of interior livable space shall, be considered other residential construction that does not increase assessable space by 500 square feet. These fees are assessed by the school district. 78 Exhibit A

18.25.060 - Accessory Dwelling unit (ADU) Regulations
A. General Plan and Zoning.

1. Residential Use. ADUs approved in compliance with this chapter shall be considered a residential use that is consistent with the existing general plan and zoning designation for the lot.

2. Permitted Locations. ADUs are permitted on lots with an existing or proposed singlefamily or multifamily dwelling in areas zoned to allow single-family or multifamily residential use.

3. Density. ADUs shall not count toward the maximum density permitted on the lot.

B. ADU Typology. ADUs shall be either (i) attached to, or located within, the proposed or existing primary dwelling, including attached garages, storage areas or similar uses or an accessory structure; or (ii) detached from the proposed or existing primary dwelling and located on the same lot as the proposed or existing primary dwelling, including detached garages.

C. Objective Standards.

1. Single-Family ADUs.
i. The following accessory units shall be ministerially approved on a lot with a singlefamily dwelling:
a. One (1) ADU within the proposed space of a single-family dwelling or existing space of a single-family dwelling or existing accessory structure that may include an expansion of not more than 150 square feet for ingress/egress; and b. One (1) detached, new construction, ADU of not more than 800 square feet of interior livable space that does not exceed four-foot side and rear yard setbacks and that meets the height requirements of this chapter. ii. One (1) An ADU that does not meet the criteria of subsection (i) above may be ministerially approved if it meets the objective standards contained in this chapter, except that the minimum or maximum size for an ADU or limits on lot coverage, floor area ratio, open space, front setbacks, and minimum lot size, for either attached or detached dwellings, shall not be imposed if they preclude a unit authorized by Government Code section 66321(b)(3) from being constructed in compliance with all other local development standards.

2. Multifamily ADUs.
i. The following units shall be ministerially permitted on a lot with a multifamily dwelling:
a. Conversion ADUs. A minimum of one (1) ADU and a maximum of 25-percent of the total number of existing multifamily dwelling units shall be permitted to be converted from existing multifamily dwelling structures that are not used as 79 Exhibit A

livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if each unit complies with the State building standards for dwellings.
b. Detached ADUs.
(1) Existing Multifamily Dwelling. On a lot with an existing multifamily dwelling, not more than eight (8) detached ADUs shall be permitted. The number of ADUs shall not exceed the number of existing multifamily units on the lot. An ADU subject to this provision shall meet the height requirements of this chapter.
(2) Proposed Multifamily Dwelling. On a lot with a proposed multifamily dwelling, not more than two (2) detached ADUs shall be permitted. An ADU subject to this provision shall meet the height requirements of this chapter.

3. Size. Except for ADUs permitted pursuant to Government Code Section 66323, the maximum allowable square footage for ADUs shall not exceed the area limitations specified below. For the purposes of this section, the calculation of ADU square footage shall not include garages, carports, covered porches/patios, breezeways, and/or other accessory structures.
i. Existing Floor Area. ADUs converted from existing floor area shall not be subject to any size limitations.
ii. New Floor Area.
a. Attached and Detached ADUs. ADUs created from new floor area shall not exceed 1,200 square feet of interior livable space. Multifamily ADUs consistent with Government Code Section 66323 shall not be subject to the size limitation of this section.

4. Adjusted Maximum Floor Area (AMFA), Lot Coverage, Floor Area Ratio (FAR) and Coverage Area Ratio (CAR).
i. ADUs count towards and shall not exceed the AMFA, lot coverage, FAR or CAR for the subject parcel. However, this shall not prohibit the ministerial approval of ADUs constructed pursuant to Government Code Section 66321(b)(3) or 66323 and in compliance with all other local development standards. Development of the site may exceed the AMFA, lot coverage, FAR, or CAR by the minimum amount necessary to allow such an ADU.

5. Height.
i. Existing Floor Area. ADUs converted from existing floor area shall not be subject to height limitations.
ii. New Floor Area.
80 Exhibit A

a. Attached ADUs. Attached ADUs created from new floor area shall not exceed a height of 25 feet or the maximum height permitted in the underlying zoning district, whichever is lower. In all cases, ADUs shall not exceed two stories. b. Detached ADUs. Detached ADUs created from new floor area, on a lot with an existing or proposed single family or multifamily dwelling unit, shall not exceed a height of 16 feet, or a height of 18 feet if either of the following conditions are met:
(1) Transit Proximity. The lot on which the ADU will be created is within one-half mile walking distance of a major transit stop or a high-quality transit corridor, as those terms are defined in Public Resources Code Section 21155. (2) Multifamily, Multistory Structure. The lot on which the ADU will be created consists of an existing or proposed multifamily, multistory dwelling.

An additional height of two feet, for a maximum height of either 18 or 20 feet, shall be allowed to accommodate a roof pitch on an ADU that is aligned with the roof pitch of the primary dwelling unit.

6. Setbacks.
i. Existing Floor Area. ADUs located within an existing living area or an existing accessory structure, or ADUs that replace an existing structure and are in the same location and to the same dimensions as the structure being replaced, shall not be subject to setbacks.
ii. New Floor Area. ADUs created from new floor area are subject to the following setbacks:
a. Front Yard. Same as the underlying district, including required Scenic Corridor setbacks. No front setback is required for ADUs permitted per Government Code Section 66321(b)(3) or 66323.
b. Side Yard. A minimum of four (4) feet.
c. Rear Yard. A minimum of four (4) feet.

7. Parking.
i. Parking shall not be required for ADUs.
ii. If parking is provided, parking space design shall conform with Section 18.60.020, Parking Dimensions and Access.

8. Site improvements. Site improvements, including grading, driveways, patios, decks, etc., outside the minimum necessary to facilitate the construction of an ADU pursuant to Government Code Section 66321(b)(3) or 66323 shall be subject to the requirements and permitting processes of the underlining zoning district for such improvements.

9. Objective Design Standards. ADUs (except those created pursuant to Government Code Section 66323) shall comply with the following Objective Design Standards. ADUs created 81 Exhibit A

pursuant to Government Code Section 66323 are encouraged, but not required, to comply with the Objective Design Standards of this section. i. Light reflectivity Values (LRV) – The LRV of proposed colors shall not exceed 40 percent, except that trim color and roofs shall not exceed 50 percent. ii. Exterior Lighting – All exterior lighting shall comply with all requirements listed in Section 18.36.040.A.8 Outdoor lighting, except that the primary entrance of the ADU may have one or two fixtures, which shall be limited to a total lumen count of seven hundred lumens.
iii. Landscaping – Proposed landscaping plantings shall be selected from the town’s approved native plants list.

D. Building Code Requirements. ADUs must comply with the Town’s building code requirements for detached dwellings. However, constructing an ADU does not constitute a Group R occupancy change under Section 310 of the California Building Code (Title 24), unless the Building Official issues a written finding, supported by substantial evidence, that the construction poses a specific, adverse impact on public health and safety. This provision shall not prevent the Town from changing the occupancy code for space converted from uninhabitable or non-residential use to residential use.

E. Passageway. No passageway shall be required in conjunction with the construction of an ADU.

18.25.070 - Junior Accessory Dwelling unit (JADU)
A. Permitted Locations. JADUs shall be permitted in single-family residential zones.

B. Number of JADUs. The following accessory units shall be ministerially approved on a lot with a single-family dwelling. This is in addition to the ADUs allowed per Section 18.25.060.

1. One (1) JADU within the proposed space of a single-family dwelling or existing space of a single-family dwelling that may include an expansion of not more than 150 square feet for ingress/egress.

C. Size. JADUs shall be limited to a maximum size of 500 square feet of interior livable space.

D. Owner Occupancy. Owner occupancy is required if the JADU has shared sanitation facilities with the primary dwelling. The owner may reside in either the JADU or the primary dwelling unit. Owner-occupancy is not required if the JADU has separate sanitation facilities from the primary dwelling unit or if the owner is another governmental agency, land trust, or housing organization.

E. Deed Restriction. A deed restriction, which shall run with the land, shall be filed with the Town. The deed restriction shall include:
82 Exhibit A

1. A prohibition on the sale of the JADU separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasers; and

2. A restriction on the size and attributes of the JADU that conforms with Government Code Sections 66333 – 66339.

F. Interior Entry. In addition to a separate exterior entrance, JADUs that do not include a bathroom shall include an interior entry to the main living area of the single-family residence.

G. Efficiency Kitchen. JADUs shall provide an efficiency kitchen that includes all of the following:

1. A cooking facility with appliances.

2. A food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.

H. Parking. Parking shall not be required for a JADU.

I. New or Separate Unit. JADUs shall not be considered a separate or new dwelling unit for the purposes of any fire and life protection ordinance or regulation.

CHAPTER 18.36 - USES PERMITTED IN ALL DISTRICTS
All other sections remain the same.

18.36.040 - Accessory uses.

A. An accessory use is a related minor use which is either (a) necessary to the operation or enjoyment of a lawful principal use or conditional use, or (b) appropriate, incidental and subordinate to any such use. No use in any district shall be permitted as an accessory use which is not qualified as hereinabove set forth, or which constitutes in effect a conversion of a principal use to one not permitted in that district. This section shall apply to new construction and replacement fixtures. In addition to other uses meeting the qualifications set forth in this section, and subject to the limitations set forth in this title, the following accessory uses are permitted in all districts when located on the same parcel as the principal use:

1. The installation and operation of necessary facilities and equipment in connection with such schools and other institutions as are permitted in the respective district;

2. Recreation, refreshment and service buildings in public parks;

3. Required off-street parking spaces and required off-street loading spaces as regulated by this title;

4. Fences and walls subject to the height and area regulations of this title;

5. Hedges, trees, shrubs and other ornamental planting; 83 Exhibit A

6. Horticulture;

7. Electric and communication service lines provided that all such lines are placed underground except where exempted in accordance with the procedure set forth in subsection B of Section 18.36.010;

8. Outdoor Illumination.
i. Purpose. The purpose of this subsection is to provide clear regulations regarding allowable outdoor lighting. The town's general plan states: "Night lighting visible from the exterior of buildings should be strictly limited to that necessary for security, safety and identification. All night lighting, including signs, should be low intensity and shielded from view from residential areas." This chapter aims to provide regulations for outdoor lighting that will:
a. Permit the use of outdoor lighting that does not exceed the minimum necessary for night-time safety, utility, security, and enjoyment. b. Minimize adverse offsite impacts of lighting such as light trespass and obtrusive light.
c. Curtail light pollution, reduce skyglow and improve the nighttime environment for astronomy and star gazing in keeping with the dark sky movement.
d. Help protect the natural environment from the adverse effects of night lighting.
e. Conserve energy and resources to the greatest extent possible. ii. Definitions.
a. Brightness shall be measured in lumens.
b. Dark sky compliant fixture or equivalent shall mean a light fixture from which all light emitted directly or indirectly, is projected below a horizontal plane.
c. Flood lighting shall mean any fixture which lights a large area, as opposed to an individual feature such as a step, path or doorway.
d. Manual switch shall mean any light requiring a physical action to control, whether by hardwires at the property, phone or computer application, or other technology.
e. Motion-sensor shall mean any light control which is trigged by motion. f. Photo-cell shall mean a light-sensitive control that switches lights on or off depending on the level of outdoor light.
g. Timer shall mean any device which controls the hours or amount of time that a light fixture is illuminated.
84 Exhibit A

iii. Applicability. All outdoor lighting installed after the date of effect of this ordinance shall comply with these requirements. This includes, but is not limited to, new lighting, replacement lighting, or any other lighting whether attached to structures, poles, the earth, or any other location. These regulations are meant to apply only to the visible light spectrum.
a. Exceptions.

1. Lighting for signs shall be regulated by Chapter 18.40, Signs.

2. Holiday lighting, including in trees, for up to sixty total days per calendar year.
iv. Lighting Placement.
a. Exterior doors shall have one fixture each.
b. Garage doors may have one or two fixtures, which shall be limited to a total lumen count of one thousand one hundred twenty-five lumens. c. Low path, step and wall lights for safety and navigation purposes for pedestrian and other non-vehicular uses.
d. Lighting for exterior patios and dining areas shall be recessed and shielded from off-site visibility.
v. Fixture Type. All outdoor lighting fixtures shall be dark sky compliant or equivalent specifically, they shall include the following elements:
a. Shield directing light downward;
b. Bulb not protruding below horizontal plane at bottom of shield; c. Light spill limited to the object to be illuminated; d. Fixtures shall not have ability to swivel or adjust direction, except path lighting, which shall not swivel above a forty-five-degree angelangle from a vertical line down.
vi. Lighting Control. Lighting controls and technologies shall be implemented to the effect that outdoor lights are on only when needed and never during daylight.

Controls shall function with dark sky compliant fixtures. Current technologies include manual switches, photo-cells, timers, and motion sensors. Any combination of these technologies may be used, with the following limitations:
a. Motion-sensor lights shall be triggered only by motion within a property and shall not be activated by motion in adjacent property or rights-of-way. b. Photo-cells shall be used only to ensure lighting is off during the day, as opposed to on a night.
c. Timers shall be included on all motion-sensor lights to ensure that illumination is limited. Timers shall be used only to turn lights off, not on. 85 Exhibit A

d. Lights shall self-extinguish within two minutes of being illuminated. vii. Prohibited Lighting. The following lighting types and systems are prohibited from being installed or used:
a. Up-lighting;
b. Lighting for night use of uncovered game courts, including tennis, paddle tennis, basketball, riding rings, and similar outdoor recreation facilities and areas;
c. Aerial lasers and other focused beams;
d. Flood lights or lighting;
e. Searchlights;
f. Lighting with no on/off switch or ability to be controlled; g. Any permanent or temporary lighting in which any single light source exceeds one thousand one hundred twenty-five lumens.
h. Festoon, cafe, or any other string of exposed blubs. viii. Lighting Requiring ASCC Approval. The following light fixtures, placements, or types are generally discouraged and require ASCC approval in order to be installed:
a. Lighting for landscaping, trees or structures, including entryway features, pillars and posts;
b. Commercial parking lighting.

9. Septic tanks and drain fields;

10. Antennas designed to receive television or microwave signals transmitted from satellite or terrestrial stations. Antennas with diameters exceeding four feet are subject to review by the architectural and site control commission as provided for by paragraph 6 of subsection A of Section 18.64.010.

11. Tennis courts and paddle tennis courts, provided the sum of the maximum depth of cut and maximum height of fill for such facilities shall not exceed the following:

Parcel Area Combined Cut and Fill Feet

1.0 ac. or less 8

1.2 ac. 9

1.4 ac. 10

1.6 ac. 11

1.8 ac. or more 12
86 Exhibit A

12. Emergency shelters for up to ten individuals only when located on a parcel with a conditional use for a religious institution, subject to a zoning permit. Emergency shelters shall comply with the following standards:
i. Temporary shelter shall be available to residents for no more than sixty days.

Extensions up to a total stay of one hundred eighty days may be permissible if no alternative housing is available.
ii. On-site management shall be provided during the hours of shelter operation. iii. Emergency shelters may include common space for the exclusive use of the guests, and office and meeting space for the exclusive use of emergency shelter staff.
iv. Each shelter shall have a designated outdoor smoking area that is not visible from the street or from adjacent properties. The outdoor smoking area may be screened by vegetation.
v. On-site parking may be provided as shared parking with the church use. If separate on-site parking is needed, the maximum amount required shall be 0.35 parking spaces per one bed plus one space per staff member on duty when guests are present.

B. Accessory Dwelling Units and Junior Accessory Dwelling Units.

1. Purpose. The purpose of this section is to define accessory dwelling units (ADUs) and Junior Accessory Dwelling Units (JADUs), and describe their development standards, review required, and additional regulations. ADUs and JADUs are allowed in certain situations in order to help achieve the town's goals which include but are not limited to:
a. Encourage the development of ADUs and JADUs through a ministerial approval process;
b. Create new housing units while respecting the existing character of the town; c. Provide housing that responds to residents' changing needs, household sizes, and increasing housing costs, and provide accessible housing for seniors and persons with disabilities;
d. Offer environmentally friendly housing choices with less average space per person and smaller associated carbon footprints; and
e. Promote provision of affordable housing for people who work in town.

2. Definitions. The following definitions shall govern this section. a. Accessory Dwelling Unit, or ADU. An attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation 87 Exhibit A

on the same parcel as the main building to which it is accessory. An accessory dwelling unit also includes:
i. An efficiency unit, as defined in Section 17958.1 of the Health and Safety Code.
ii. A manufactured home, as defined in Section 18007 of the Health and Safety Code.
iii. Internal ADU. Created by converting existing or proposed interior space of a single-family or multi-family structure, such as bedrooms, attached garages, basements or attics, or a combination thereof. Converted space can also be within an existing accessory structure.
iv. External ADU. A unit which requires new construction, either attached to or detached from the main building.

1. Attached ADU. A unit which is attached to or part of the main building. Attached ADUs include new construction which is attached to the existing building, and a mix of new construction and converted space.

2. Detached ADUs. A separate building, independent from the main building, built using new construction.
b. Adjusted Maximum Floor Area, or AMFA. The maximum allowed floor area for a residential parcel, calculated by the town using the parcel's size, slope, mapped ground movement potential, and mapped flooding potential. c. Director. Planning and building director, also referred to as the town planner. d. Discretionary Review. Review of a project against the General Plan, municipal code, and Design Guidelines. The reviewing body exercises judgment in applying policies to a specific project in context and determining whether the required findings for approval can be made. The reviewing body considers public comment and may impose conditions of approval on the project. i. Staff Discretionary Review. A review process wherein the planning and building director shall review certain accessory dwelling unit applications in coordination with one member of the architecture and site control commission (ASCC).
ii. Architectural and Site Control Commission, or ASCC. A review process wherein the full ASCC reviews projects at a public meeting. e. Efficiency Kitchen. A space containing a sink with a maximum waste line diameter of one and one-half inches, a cooking facility with appliances, and a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.
88 Exhibit A

f. Existing Interior Space. For the purposes of internal ADU creation, existing interior space shall be within a building which was permitted by the town and passed its final building inspection.
g. Guest House. A building separate from the main residence which includes a bedroom and may include a bathroom, but does not include a kitchen. h. Junior Accessory Dwelling Unit or JADU. A unit that is no more than five hundred square feet in size and contained entirely within a single-family residence. A JADU shall include an efficiency kitchen and may include separate sanitation facilities. A JADU shall have a separate external entrance from the main building.

Junior accessory dwelling units do not constitute ADUs under this code. i. Main Building. This term is defined in Chapter 18.04 (definitions). For the purposes of this section, it describes the building to which an ADU is accessory.

Main buildings can have a residential or non-residential use, as permitted by this title. This section interchangeably uses the term "primary residence" and "primary dwelling" to refer to residential main buildings. j. Ministerial Review. A review process which is objective in nature and involves no personal judgment. The reviewing body confirms that all requirements are satisfied before approving a project, and may not consider public comment or impose conditions of approval.
k. Multifamily Structure. For the purpose of this section only, a structure with two or more attached dwelling units on a single lot is considered a multifamily structure. A supportive housing project consisting of two or more units is considered a multifamily structure provided the majority of the units have their own kitchen facility. The following are not multifamily structures for the purposes of this section:

1. Multiple detached single-unit dwellings on the same lot;

2. A single family dwelling containing a JADU or an interior ADU;

3. A single family dwelling with (i) a JADU or an interior ADU and (ii) an exterior ADU, either attached or detached.

4. A single family dwelling with more than one ADU.
l. Second Address. An address issued by the planning and building department for a permitted accessory dwelling unit on a parcel that has an existing unit with a different address.
m. Second Unit. See accessory dwelling unit.

3. Applicability. ADUs and JADUs shall be permitted on all parcels in all zoning districts, where a main building is in existence or is proposed concurrently. a. Fire safety exception.
89 Exhibit A

i. Prohibition. ADUs are prohibited on parcels smaller than one acre whose direct vehicular access is from a road or cul-de-sac which (1) has a single point of ingress/egress and (2) has a width of less than eighteen feet. ii. Ingress/egress restriction. ADUs on parcels which are one acre or larger and whose direct vehicular access is from a road or cul-de-sac, which (1) has a single point of ingress/egress and (2) has a width of less than eighteen feet, shall comply with the setback requirements of the underlying zoning district, regardless of ADU size.
iii. Additional restrictions. Any proposed external ADU, which does not comply with the underlying zoning or local setbacks governing the parcel, shall comply with and submit with the ADU application a completed Town of Portola Valley Fire Safety Checklist adopted by resolution of the town council. The checklist shall contain requirements for ADU construction methods and materials, defensible space and vegetation management. Such checklist requirements shall be additive to other applicable building and safety requirements.
b. Geologic safety exception.
i. Prohibition. ADUs are prohibited where construction is not permitted under Resolution No. 2746-2017 (or successive resolution or ordinance) ("Geologic Regulations") which governs construction on or near earthquake faults and traces and areas subject to active downslope movement as shown on the town's Geologic and Ground Movement Potential maps as updated from time to time.
ii. Additional restrictions. ADUs located in areas Y* and N* shall comply with the town's Geologic Regulations.

4. Development Standards. All existing development restrictions in the base zoning district shall apply, except as modified by this section. These requirements include but are not limited to coverage, open space, bulk, density, floor area and adjusted maximum floor area, impervious surface, height, setbacks, parking, site development, and outdoor lighting requirements.
a. Number.
i. One ADU and one JADU shall be permitted on all parcels smaller than three and one-half acres in size.
ii. Two ADUs shall be permitted on parcels three and one-half acres or larger in size as follows: one ADU must be detached from the main building and one ADU must be internal. A JADU shall be permitted in lieu of an internal ADU.
b. State Exemption ADU. As mandated by state law, any parcel zoned residential or mixed-use permitting residential shall be permitted to build one of the following 90 Exhibit A

applicable ADUs. The following ADUs shall be subject to ministerial review and are not subject to the town's lot coverage, AMFA, setback, height, or size standards. However, the safety exceptions in subsection 3.a. and 3.b. above shall apply.
i. New construction. One detached ADU of up to eight hundred square feet, sixteen feet in height, and with four feet side and rear yard setbacks is allowed on residential lots containing one existing or proposed single-family dwelling.
ii. Conversions/Interior units. One ADU or one JADU is permitted per lot within the existing or proposed space of a single-family dwelling or an existing accessory structure that contains exterior access and setbacks sufficient for fire and safety.
iii. Multi-family ADUs. Applicant can select one of two options:

Option 1: Conversion. Up to twenty-five percent of the existing multifamily dwelling units in a multifamily structure may convert any non-livable space to an ADU. Non-livable space includes storage rooms, boiler rooms, or parking. Under this option, at least one ADU shall be permitted regardless of the number of multifamily units. Thus, for a three unit multifamily structure, one ADU may be developed through conversion of non-livable space.

Option 2: Alternatively, up to two detached ADUs may be constructed on a lot that has an existing or proposed multifamily structure, and shall be subject to a height limit of sixteen feet and side and rear yard setbacks of four feet.
c. Floor Area Limits.
i. Floor Area. The minimum size of an ADU or JADU shall be defined by the California Building Code. The maximum size shall be:

1. Eight hundred fifty square feet for external ADUs with up to one bedroom or one thousand square feet for external ADUs with more than one bedroom where the proposed ADU does not
comply with the setbacks of the base zoning district and special setbacks applicable to the parcel.

2. Twelve hundred square feet for external ADUs where the proposed ADU complies with the setbacks of the base zoning district and special setbacks applicable to the parcel, on parcels smaller than three and one-half acres in size.

3. Fifteen hundred square feet for external ADUs where the proposed ADU complies with the setbacks of the base zoning district and special setbacks applicable to the parcel on parcels 91 Exhibit A

three and one-half acres or larger in size. If such parcel also contains an interior ADU, the maximum floor area limit of the external ADU shall not exceed twelve hundred square feet.

4. Seventeen hundred square feet for internal ADUs on all parcel sizes.

5. Five hundred square feet for JADUs on all parcel sizes. ii. Percentage. An external ADU shall be additionally limited to fifty percent of the floor area of the existing or concurrently proposed main building, except as necessary to enable an ADU up to eight hundred and fifty square feet for external ADUs with up to one bedroom or one thousand square feet for external ADUs with more than one bedroom.
iii. Adjusted Maximum Floor Area (AMFA) and Floor Area Ratio. ADU and JADU floor area shall be limited to the maximums described at subsections

4.c.i.2—5 or the floor area allowed by the base zoning district, whichever is more restrictive.
d. Floor Area—Calculations.
i. Basements. Space which meets the definition of a basement (Section

18.04.065), whether under a main residence or an ADU, shall not be included in AMFA calculations. However, floor area maximums at Section

18.36.040.B.4.c and review authority at Section 18.36.040.B.6 shall both apply to basement floor area that is part of an ADU. Basements located under an ADU that do not have internal access to the ADU are discouraged and shall be counted towards AMFA calculations.
ii. Covered parking provided for ADUs shall be included in site AMFA calculations.
e. Height. The maximum height for any type of ADU shall be:
i. Sixteen feet vertical height and sixteen feet maximum height for an external ADU subject to ministerial review where the setbacks are less than those of the base zoning district.
ii. Eighteen feet vertical height and twenty-four feet maximum height and shall be subject to ministerial review where the setbacks comply with those of the base zoning district. This includes daylight planes, where applicable. iii. More than eighteen feet vertical height or twenty-four feet maximum height, where allowed by the base zoning district, and shall be subject to staff discretionary review.
f. Parking and Driveways.
92 Exhibit A

i. Parking Requirement. JADUs and internal ADUs shall not require any dedicated parking spaces. External ADUs shall require one dedicated parking space, as follows:

1. ADU parking may be located in a covered or uncovered space, in tandem with other parking, and/or in setbacks.

2. Parking space design shall conform to Section 18.60.020, parking, dimensions and access.

3. On parcels of one acre or larger where an ADU of twelve hundred square feet or less is proposed, ADU parking is not required to be dedicated. The ADU parking space may be shared, or overlap with, one guest parking space, provided the property is compliant with the current parking requirements in this title.

4. When a garage, carport or covered parking structure is demolished in conjunction with the construction of an ADU, or converted to an ADU, the parking spaces for the main unit do not need to be replaced.
ii. Driveways. All driveways shall conform to Section 15.12.300, except the ASCC may grant an exception to the requirement that properties only have one entrance from the road and approve a second driveway when it is able to make the following findings:

1. It is not feasible for the ADU to be served by the same driveway that serves the main building, taking into consideration the cost, topography and natural landscape, among other things.

2. Providing a separate driveway for the ADU will result in less impervious surface for the property than would extending the existing driveway.

3. It is shown that the proposed driveway:
a. Does not exit onto a scenic corridor or cross a trail, as mapped by the town; and
b. Provides for safe movements for all users, as determined by the public works director.
g. Materials.
i. Exterior materials shall be in a natural color palette reflective of the local environment.
ii. Color reflectivity values shall not exceed forty percent, except that trim colors and roofs shall not exceed fifty percent reflectivity. 93 Exhibit A

h. Landscaping. Landscape plantings shall be selected from the town's list of approved native plants and shall adhere to the town's landscaping guidelines, as described in the design guidelines.
i. Lighting. All lighting shall comply with Section 18.36.040.A.8, outdoor lighting. j. Setbacks.
i. No setback shall be required for an existing garage that is converted to an accessory dwelling unit. This shall apply to both conforming and legal nonconforming garages. Non-conforming garages may not be expanded unless otherwise permitted by this section or state law.
ii. Internal ADUs shall have sufficient side and rear setbacks for fire safety. iii. A setback of four feet from the side and rear lot lines shall be required for an external ADU of up to eight hundred fifty square feet with up to one bedroom or one thousand square feet with more than one bedroom. iv. Any ADU in excess of eight hundred fifty square feet with up to one bedroom or one thousand square feet with more than one bedroom shall comply with the setbacks of the base zoning district.
v. Regardless of the setbacks permitted by this subsection, all ADUs must comply with applicable health and safety setback requirements governing specific parcels, including but not limited to setbacks required for fire safety, emergency vehicle access, geology, seismic, creek, topography, and other similar public health and safety considerations.
vi. ADUs that do not comply with the setbacks of the base zoning district or applicable parcel setbacks, whether through new construction or by conversion of an existing structure, are subject to the following restrictions:
1) on sides of the structure within the required setback(s) there may be no exterior lighting, no egress windows or doors, and no portion of the windows and/or skylights shall be above nine feet in height 2) windows in required setbacks must consist of obscured glass to promote privacy between neighbors; 3) the ADU may not have a second driveway; 4) the ADU may not have any associated improvements/amenities such as a patio, deck, pool, fire pit, trellis, or sauna; 5) no basement shall be permitted; 6) fire safe landscape screening must be planted and maintained to minimize the visual impact to the neighbors.
vii. For the purposes of this section, if any of the property boundaries are within or adjacent to an open space, road, trail, utility or similar easement running the length or width of the property boundary, the setback shall be measured from the edge of the easement located on the property. k. Second Address. ADUs may be assigned a separate address at the property owner's request, with the exception that any ADU with an approved second 94 Exhibit A

driveway shall always be assigned a second address. Applicants requesting an address shall submit an application as part of the building permit submittal. The planning and building director, in consultation with Woodside Fire Protection District, shall review and approve applications.
l. Utilities. When visible from the public right-of-way, utilities installed to serve an ADU shall be grouped with any existing infrastructure for the main building and screened to the extent feasible, as determined by the planning and building director. In determining feasibility, the planning and building director may consider cost, topography, and the natural landscape.
i. Utility Undergrounding. Utilities shall be required to be placed underground, as described in Section 18.36.010.B, with the following exceptions for ADUs:

1. An internal ADU and any associated electrical service increases shall not trigger undergrounding of utilities.

2. A detached ADU shall always underground utilities between the main house and the ADU, when connecting from the main house. ii. Any other instance of new construction for an external ADU shall require undergrounding as stipulated in Section 18.36.010.B relating to utility undergrounding, with the exception that an applicant may apply to the ASCC for relief from these requirements, as well as the undergrounding requirement for detached ADUs at subsection 4.k.i.2, and if the ASCC thereafter finds that undergrounding is not feasible or practicable, or that there is no reasonable alternative location for the related equipment, such undergrounding requirement shall not apply. Significant financial costs, topography, and natural landscape may be included in this consideration. m. Building Codes. ADUs must comply with applicable building code requirements, including fire sprinkler requirements, unless a modification or waiver of the fire sprinkler requirement is approved by the fire marshal. An ADU created by the conversion of existing interior space shall not be required to provide fire sprinklers if sprinklers are not required for the main residence.

5. Types of Review.
a. Ministerial Review. Ministerial review shall be completed by the planning and building director or her/his qualified designee under the building permit review process. No public hearings or noticing are required as part of this review; however, the applicant shall provide notice to all adjacent neighbors as part of the application process on a form approved by the director of planning. An ADU or JADU application which qualifies for ministerial review shall be acted upon within sixty days of the date the town receives a completed application. An ADU or JADU application made pursuant to an application for a main building may be 95 Exhibit A

delayed until a decision is made on the permit application to create the new main building.
b. Discretionary Review.
i. Discretionary review shall be conducted by one of the following review bodies:

1. The planning and building director shall complete staff discretionary review in consultation with an ASCC member. The director may refer items directly to the ASCC when in her/his opinion the public interest would be better served by having the ASCC conduct the review.

2. ASCC review is a discretionary review completed by the full ASCC at a noticed meeting.
ii. Findings for Approval. The review body must be able to make all of the following findings in order to approve an ADU subject to discretionary review:

1. The structure is designed so as to minimize disturbance to the natural terrain;

2. Existing vegetation is preserved to the maximum extent possible;

3. The structure is designed and located to allow adequate light and air for itself and its neighbors;

4. Landscaping, screening and fencing preserve privacy and mitigate adverse effects on neighboring properties;

5. Entrances, exits and internal circulation shall be sited to promote traffic safety and ease and convenience of movement;

6. Night lighting is located and fixtures chosen to promote public safety but minimize effects on adjoining properties;

7. Planting and site design mitigate the problems of drainage and soil erosion;

8. Materials and colors are compatible with the rural setting of the town and the surrounding landscape and structures;

9. Proposed grading minimizes the apparent disturbance to the natural terrain;

10. The project is consistent with the Portola Valley Design Guidelines;
96 Exhibit A

11. The physical position, massing, and architectural design of the ADU reflect that it is accessory in nature and holds a subservient position to the main building;

12. The design of the ADU and its ingress/egress reflect their physical positions on the property, such that units on or adjacent to setbacks are designed to minimize impacts toward adjacent properties.
iii. Notice. Minimum noticing for ADUs requiring discretionary review shall include:

1. Noticing to adjacent neighbors by the applicant, as required by the planning and building director in a form consistent with application materials published to the town website.

2. Noticing as described by Section 18.64.085, ASCC - notification. c. An ADU application which is dependent on a septic tank and drain field shall be referred to and require approval of the county health officer in accordance with town policies.
d. An ADU application which requires soil movement greater than fifty cubic yards or other work requiring a site development permit under Section 15.12.070 shall be referred to the town geologist, the town engineer, and any other review bodies necessary as determined by the planning and building director.

6. Assignment of Review Responsibilities.
a. Ministerial Review. State exemption ADUs authorized under Section

18.36.040.B.4.b above and ADUs which do not have any of the conditions listed in Section 18.36.040.B.6.b—d, below, shall be subject to ministerial review. All projects subject to ministerial review shall comply with all code requirements. b. Staff Discretionary Review. ADUs which do not have any of the conditions listed in Section 18.36.040.B.6.c., below, and which include any of the following shall be subject to staff discretionary review. However, any state authorized ADU defined in Section 18.36.040.B.4.b shall not be subject to discretionary review. i. An internal ADU larger than twelve hundred square feet or fifty percent of the existing building, whichever is less;
ii. An ADU taller than eighteen feet in vertical height or twenty-four feet in maximum height;
iii. An ADU with a light well larger than the minimum building code requirement;
iv. An attached ADU which causes the main residence to exceed eighty-five percent of the adjusted maximum floor area (AMFA), except where the 97 Exhibit A

proposed ADU is up to eight hundred fifty square feet for external ADUs with up to one bedroom or one thousand square feet for external ADUs with more than one bedroom.
c. ASCC Review. ADUs which include any of the following shall be subject to ASCC review. However, any state authorized ADU defined in Section 18.36.040 B.4.b shall not be subject to discretionary review.
i. A separate driveway for the ADU.
ii. Location in a non-residential zone.
iii. Location on a property with historic resources, as identified in the historic resources element of the general plan, as provided for in Chapter 18.31, H-R (Historic Resources) Combining District Regulations..
d. Geological Hazards. ADUs subject to Section 18.36.040(3)(b) (geologic safety exception) shall be subject to discretionary review consistent with Resolution No. 2746-2017, as may be amended from time to time.

7. Additional Restrictions. In addition to the development standards described in this section, all ADUs and JADUs shall be subject to the following restrictions:
a. Sold Separately. ADUs and JADUs shall not be sold separately from the main dwelling.
b. Owner Occupancy. Where there is an ADU, either the ADU or the main building must be owner occupied. The other unit may be rented. ADUs approved between January 1, 2020 and December 24, 2024 are excepted from this requirement. Where there is a JADU, either the JADU or the main building must be owner occupied.
c. Rental Restrictions. On properties where an ADU or JADU is present, any rentals of the ADU, JADU, or main building shall be for a term of thirty days or more.

8. Administration.
a. Appeals. A decision by the planning and building director or ASCC on an ADU may be appealed, if the appeal is filed within fifteen days of the decision. i. A decision made by the planning and building director is appealable to the ASCC.
ii. A decision made by the ASCC is appealable to the planning commission. b. Implementation. The town council authorizes the planning and building director to establish permit application requirements, forms, and checklists that the director finds necessary or useful for processing any applications governed by this chapter and to adopt administrative guidelines to assist in the implementation of this chapter.
98 Exhibit A

CHAPTER 18.82 – INDEMNIFICATION OF TOWN; COST REIMBURSEMENT; COST

REIMBURSEMENT

18.82.010 – Applicability
An Applicant who applies for a permit or entitlement for development or any successor in interest (“Applicant”) shall, as a condition of such application and process, be subject to the indemnification requirements set forth in this chapter., and shall reimburse the Town for all costs and fees associated with the Town’s response to any Public Records Act requests related to the application.

18.82.020 – Indemnity Required
The Applicant shall defend (with counsel of the Town’s choosing), indemnify, and hold harmless the Town, its agents, officers, and employees from and against:

A. Any and all claims, demands, actions or proceedings against the Town, its agents, officers, and employees to attack, set aside, void, or annul approval of any permit or arising out of or in any way relating to any actions taken by the Town related to approval of a project; and B. Any and all claims, demands, actions, expenses or liabilities arising from, or in any manner relating to, construction, installation, alteration or grading work (whether on private or public property) which is the subject of a permit approval and performed by such Applicant or by any person acting on behalf of such Applicant.

The Applicant’s duty under this section shall not apply to the extent such claims arise out of the sole negligence or willful misconduct of the Town, its agents, officers, and employees.

18.82.030 – Cooperation and Notification
The Town shall promptly notify the Applicant of any claim, action, or proceeding regarding the project and the parties shall cooperate fully in the defense of such claim, action, or proceeding.

18.82.040 – Proof of Coverage Required
The Town may require proof of a policy or policies of liability and other insurance coverage (including, but not limited to, contractual liability coverage) consistent with the applicable insurance standards of the Town.
99 TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Sarah Cawrse, Planning and Building Director
DATE: May 27, 2026
RE: Approve and Authorize the Mayor to Execute an Amendment to the Current Professional Consultant Services Agreement for On-Call Planning, Building, Code Enforcement, and Engineering Services with CSG, Inc.

RECOMMENDATION
Staff recommends that Council, by motion, approve and authorize the Mayor to execute an Amendment to the current Professional Consultant Services Agreement to increase the compensation value from $200,000 to $650,000 for On-Call Planning, Building, Code Enforcement, and Engineering Services with CSG, Inc. through June 30, 2026.

BACKGROUND
The FY 25-26 Budget includes Planning, Building, Code Enforcement, and Engineering contract services for operations. At the Town Council meeting on October 22, 2025, the Town Council, by motion, approved and authorized the execution of a Professional Consultant Services Agreement (“Contract”) with CSG, Inc. in an amount not to exceed $200,0000 per Contract for On-Call Planning, Building, Code Enforcement, and Engineering Services through June 30, 2026. The executed Agreement is provided in Attachment 1. The scope and level of services is included as Exhibit A.

DISCUSSION
Since the Contract was approved, there has been an increase in the need for CSG, Inc. to provide contract services to the Town for Building, Code Enforcement, and Engineering Services. The Town has shifted a significant amount of work to CSG, Inc to improve the efficiency and coordination of building and encroachment permit processing, which was previously spread across multiple consulting firms. CSG, Inc. is providing engineering plan review services, as well as completing the required Stormwater C.6 inspections and other engineering inspections. They are supporting work on CIP projects, such as the survey and title research work for the Portola Valley Ranch bridges, and conducting reviews for the Stanford Portola Terrace project. Additionally, the Town has a vacancy in the Senior Development Review Technician position. The recruitment to fill this position was unsuccessful in late 2025. Therefore, the Town has been utilizing the services of a contractor from CSG, Inc. to backfill the vacancy.

This Town Council agenda item would approve and authorize the Mayor to execute an Amendment to the current Professional Consultant Services Agreement to increase the compensation value from $200,000 to $650,000 for On-Call Planning, Building, Code Enforcement, and Engineering Services with CSG, Inc. through June 30, 2026. This will allow CSG to continue to provide these essential services through the full term of the agreement. The amendment is provided in Attachment 2 for Council consideration.
100

FISCAL IMPACT
The increased compensation for this agreement in the amount of $450,000 can be funded from available balance in the adopted Fiscal Year 2025-26 budget. Funding for these on-call services is appropriated in the Planning and Building Department and the Public Works Division. Most of these services are related to Planning and Building services which are funded by application fees and deposits and are passthrough costs. There are some general fund and Capital Improvement Program (CIP) costs that are also included in the adopted FY25/26 Town CIP and Operating budget.

ATTACHMENTS

1. Agreement - CSG

2. Amendment - CSG
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108
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112
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AMENDMENT NO. 1 TO AGREEMENT FOR ONCALL PLANNING, BUILDING, CODE

ENFORCEMENT, AND ENGINEERING SERVICES

BETWEEN

TOWN OF PORTOLA VALLEY AND CSG, INC
This Amendment Number 1 (“Amendment”) is made and entered into this 27th day of May, 2026, with respect to the Agreement by and between the Town of Portola Valley (“Town”) and CSG, Inc. (“Consultant”).

RECITALS
A. The Town and Consultant entered into the Agreement to provide On-Call Planning, Building, Code Enforcement, and Engineering Services on July 1, 2025.

B. The Town and Consultant desire to further modify theAgreement.

NOW THEREFORE, in consideration of the mutual covenants, the Town and Consultant do hereby agree as follows:

1. Compensation. The compensation for services identified in Exhibit A is increased by $450,000 to an amended not to exceed amount of $650,000 for the entire Agreement.

2. Except as expressly modified herein, all other terms and covenants set forth in the Agreement shall remain the same and shall be in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Amendment No. 1 as of the date set forth above.

TOWN OF PORTOLA VALLEY: CSG, Inc.:

Craig Taylor, Mayor Date Cyrus Kianpour, President Date ATTEST:

Veronica Dao, Town Clerk
APPROVED AS TO FORM:

Catherine Engberg, Town Attorney
126
______________________________________________________________________________________ TO:

FROM:

DATE:

RE:

Mayor and Members of the Town Council
Anthony McFarlane, Assistant Town Manager
May 27, 2026
RECOMMENDATION:

Council is recommended to do the following,

1. Hold a Public Hearing to review, discuss results and elicit public comment on the Comprehensive User Fee Study Report (Report) performed by Matrix Consulting Group and provide direction to staff.

2. Approve the Report as final to establish a legal document for justification of City Fees and to utilize in establishing an updated Resolution establishing Town fees.

3. Consider adoption of a resolution amending the Fee Schedule for services based on the approval of the Report.

REPORT SUMMARY
The Town contracted with Matrix Consulting Group to perform a comprehensive fee study.

Such a study is normal and customary to ensure that that Town is,

1. not overcharging fee payers

2. establishes the true costs of programs and services, and

3. provides the legal support for fees set by the Town to ensure compliance with state law.

Matrix Consulting Group used a “bottom up” approach cost analysis for their methodology.

Their analysis determined the time spent per unit of fee activity for each position within a department or program. The data consisted of direct costs from the Fiscal Year 2025-26 budgeted salaries, benefits, allowable expenses, and indirect costs from additional support for each activity. Other steps included the following,

1. Multiple interviews with staff

2. Data collection for each service

3. Cost analysis

4. Review and approval of results with Town staff

TOWN OF PORTOLA VALLEY

STAFF REPORT

TOWN OF PORTOLA VALLEY
127
Hold Public Hearing and Consider Adoption of Resolution Adopting the Master Fee Schedule Update

Town Committee Funding Requests May 27, 2026
As a result of their analysis, the Town is at 46% cost recovery for fee-related services and will serve as the baseline for Council discussion and direction on cost recovery targets.

A user fee policy is designed to guide local governments in setting fees for services that provide a direct benefit to individuals, groups, or businesses. Fees should not be used primarily as revenue-raising tools, as this can undermine the purpose of the services provided and create inequities in access. Fees should reflect the full cost of providing the service including direct, indirect and overhead costs, unless the Town Council elects to subsidize a service.

Key Components of a User Fee Policy

1. Cost Recovery
a. Fees should aim to recover the full cost of service provision.

2. Fee Strategy and Purpose
a. The purpose of each fee should be defined.
b. A clear strategy ensures transparency.

3. Fee Review and Adjustment
a. Fees should be reviewed regularly and adjusted for inflation, cost changes or policy updates.

4. Transparency and Documentation
a. A comprehensive list of fees should be documented and the rationale for the fee should be clearly communicated.

5. Service Categorization
a. Fee structures should reflect the relationship between service costs and the benefits received.

RECOMMENDATIONS
For cost recovery considerations, Council direction will be needed for the following recommendations,

1. The Town should review current cost-recovery levels and adopt a formal costrecovery policy.

2. The Town should adopt an annual fee-increase mechanism to raise its fees each year to keep pace with cost-recovery goals. The current practice is to use February 12-month CPI index each year.

3. The Town should perform a comprehensive update of its Fee Assessment every 5 to 7 years.

In conclusion, the Comprehensive Fee Study Report and subsequent User Fee policy will help the Town create a structured, transparent, and equitable user fee policy that supports financial sustainability while ensuring that those who benefit from services contribute appropriately to their costs.
128

Town Committee Funding Requests May 27, 2026

FISCAL IMPACT
Fiscal impact will be determined based on cost recovery levels directed by Council and will be reported when the Fiscal Year 2026-27 Operating and Capital Budget is considered for adoption.

ATTACHMENTS

1. Comprehensive User Fee Study Report Revised 5/27/2026

2. Resolution

3. Master Fee Schedule
129

PORTOLA VALLEY, CA

COMPREHENSIVE USER FEE

STUDY REPORT

PORTOLA VALLEY, CA
May 2026
Revised 5/27/2026
INTRODUCTION AND EXECUTIVE SUMMARY 1
LEGAL FRAMEWORK 4
USER FEE STUDY METHODOLOGY 7
RESULTS OVERVIEW 9
ADMINISTRATIVE 10
BUILDING 12
CODE ENFORCEMENT 16
ENGINEERING 17
PLANNING 19
RECREATION 23
ANNUAL IMPACTS 26
COST RECOVERY CONSIDERATIONS 28
APPENDIX – COMPARATIVE SURVEY 30

TABLE OF CONTENTS

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 1
The following report presents the results of the Comprehensive User Fee study conducted by Matrix Consulting Group for the Town of Portola Valley, California.

PROJECT BACKGROUND AND OVERVIEW
The Town conducted a comprehensive fee analysis in 2012. This study provides an updated evaluation of the Town’s fee schedule, establishing a current baseline that reflects today’s service levels, staffing, and costs. The focus of this analysis is to determine the full cost (direct and indirect) of fee-related services, and provide stakeholders with the documentation needed to develop appropriate fiscal policies for fee setting.

Matrix Consulting Group analyzed the cost-of-service relationships among fees for service activities in the following areas: Administrative, Building, Code Enforcement, Engineering, Planning, and Recreation.

The results of this study provide a tool for understanding current service levels and the cost for those services.

GENERAL PROJECT APPROACH AND METHODOLOGY
The methodology employed by Matrix Consulting Group is a widely accepted “bottom up” approach to cost analysis, where time spent per unit of fee activity is determined for each position within a Department or Program. Once the time spent on a fee activity is determined, all applicable Town costs are considered in calculating the “full” cost of providing each service. The following table provides an overview of the types of costs applied in establishing the “full” cost of services provided by the Town:

TABLE 1: OVERVIEW OF COST COMPONENTS
Cost Component Description
Direct Fiscal Year 2025-26 Budgeted salaries, benefits, and allowable expenditures.

Indirect Division, departmental, clerical, and Townwide support.

Together, the cost components in the table above comprise the calculation of the total “full” cost of providing a service, regardless of whether a fee for that service is charged. The work accomplished by Matrix Consulting Group in the analysis of the proposed fees for service involved the following steps:
• Department Interviews: The project team interviewed department/division staff and contracted staff regarding their needs for clarification of the structure of existing fee items or the addition of new fee items.

INTRODUCTION AND EXECUTIVE SUMMARY

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 2
• Data Collection: Data were collected for each permit/service, including time estimates. In addition, all budgeted costs and staffing levels for Fiscal Year 25-26 were entered into Matrix Consulting Group’s analytical software model.
• Cost Analysis: The full cost of providing each service included in the analysis was established. • Review and Approval of Results with Town Staff: Department management has reviewed and approved these documented results.

A more detailed description of user fee methodology and legal and policy considerations is provided in subsequent chapters of this report.

SUMMARY OF ANNUAL IMPACTS
The project team evaluated Town-Only cost recovery for each fee-related Division by assessing the Division's full cost, including direct operational costs and indirect expenses. The table below compares budgeted revenue to full cost, highlighting the differences and the associated cost-recovery percentages.

TABLE 2: FULL COST RECOVERY
Division/Department
Town Only
Revenue
Town Only
Full Cost Diff ($)
Current Cost
Recovery
Building $300,700 $323,150 ($22,450) 93%
Code Enforcement $0 $59,557 ($59,557) 0%
Planning $127,500 $388,039 ($260,539) 33%
Public Works $39,000 $91,955 ($52,955) 42%
Recreation $144,200 $247,065 ($102,865) 58%
Total $611,400 $1,109,766 ($498,366) 55%
Overall, the Town is at 55% cost recovery for fee-related services, resulting in an under-recovery of $500,000.

Cost recovery targets are often set based on the level of community benefit provided. Services that offer broad public benefit or are intended to encourage participation are typically subsidized, while services that provide exclusive use or individual benefit are more likely to achieve full cost recovery. Additionally, many of the Town’s current fees have not been comprehensively updated to reflect changes in staffing, materials, and operational practices since the last fee study. As a result, several fee categories are not fully recovering the cost of service under current conditions. Details on divisional cost recovery levels are provided in the Annual Revenue Impacts chapter of this report.

The cost recovery figures presented in this report are intended to provide a basis for policy development discussions among Council members and Town staff, and do not represent a recommendation on where or how Council should act. The setting of the “rate” or “price” for services, whether at 100 percent full cost recovery or lower, is a policy decision to be made only by Council, with input from Town staff and the community

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 3

IMPLEMENTATION RECOMMENDATIONS
This report provides the Town with detailed information regarding cost recovery at the unit or application level. To ensure the Town can maximize the value of this report and implement its findings appropriately, Matrix Consulting Group has provided the following recommendations.

1. Adopt a formal policy regarding cost recovery goals.

2. Adopt an annual fee-increase mechanism to raise its fees each year to keep pace with costrecovery goals and market conditions.

3. Perform a comprehensive update of its Fee Assessment every 5 to 7 years.

The above measures will help the Town document any cost-recovery decisions and allow future decisionmakers to understand the fees charged for services and the reasons for any subsidies.

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 4
This section of the report provides an overview of the legal rules and regulations governing what constitutes a fee-for-service, how those fees can be calculated, and the general principles, philosophies, and policy considerations for setting fee-for-service rates.

LEGAL FRAMEWORK
A “user fee” is a charge for a service provided by a governmental agency to a citizen or a group of the public. California has several Government Codes and Propositions that regulate fees for service, with the purpose of ensuring that fees are reasonable and justified. The most prominent and relevant of these include:
• Proposition 26: Passed in 2010, specifically outlined the difference between a fee and a tax and dictates that fees must be directly related to a service and cannot exceed the reasonable cost of that service.
• Government Code § 50076: clarifies that fees for service costs are not special taxes and do not need voter approval.
• Government Code § 65104 authorizes local governments to charge planning and zoning fees to recover processing costs.

When determining fees for service, it is important to ensure there is a direct benefit – the service is provided directly to the payer, and that the fee is cost-based and does not exceed the reasonable cost of providing the service.

EXCEPTIONS TO THE RULE
While Proposition 26 defines what constitutes a user fee and how those fees can be determined, it also provides a key exception for fees charged for facility or property rentals. This exception outlines that fees for use of government property (e.g., renting public buildings, parks, or event spaces) are voluntary transactions. Therefore, governments can charge market-based rental fees for these services.

GENERAL PRINCIPLES AND PHILOSOPHIES REGARDING USER FEES Local governments provide many types of general services to their communities. While all services provided by local government are beneficial to constituents, some are globally beneficial to all citizens, while others provide a more direct benefit to a specific group or individual. The following table provides examples of services provided by local government within a continuum of the degree of community benefit received:

LEGAL FRAMEWORK

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 5
TABLE 3: SERVICES IN RELATION TO BENEFIT RECEIVED
Funding for local government is obtained from a myriad of revenue sources, such as taxes, fines, grants, special charges, and user fees. In recent years, alternative tax revenues, which typically offset subsidies for community services, have become increasingly limited. These limitations have drawn increased attention to user-fee activities as a revenue source that can offset costs otherwise subsidized (usually) by the general fund. In Table 3, services in the “global community benefit” section are primarily funded through voter-approved tax revenues. In the middle of the table, one typically finds a mixture of taxes, user fees, and other funding sources. Finally, in the “individual/group benefit” section of the table are the services provided by local government that are typically funded almost entirely by user fee revenue.

The following are two central concepts regarding the establishment of user fees:
v Fees should be assessed based on the degree of individual or private benefit derived from the services. For example, the processing and approval of a land use or building permit will generally result in a monetary gain for the applicant, whereas Police services and Fire Suppression are essential to the safety of the community at large.
v A profit-making objective should not be included in the assessment of user fees. In fact, California law requires that service charges be in direct proportion to the costs of providing those services.

Once a charge for a service is assessed at a level higher than the actual cost of providing it, the term “user fee” no longer applies. The charge then becomes a tax subject to voter approval.

Therefore, it is commonly accepted that user fees are established at a level that will recover up to, and not more than, the cost of providing a particular service.

GENERAL POLICY CONSIDERATIONS REGARDING USER FEES
Undoubtedly, there are programs, circumstances, and services that justify a subsidy from a tax-based or alternative revenue source. However, it is essential that jurisdictions prioritize the allocation of revenue sources for service provision based on the continuum of benefits received.

Among the services typically funded by user fees, the Matrix Consulting Group identifies several reasons why Town staff or the Town Council may not advocate for full cost recovery. The following factors are key policy considerations in setting fees at less than 100 percent of cost recovery:
"Global" Community Benefit
•Police
•Park Maintenance
•Fire Suppression
"Global" Benefit and an
Individual or Group Benefit
•Recreation / Community
Services
•Fire Prevention
Individual or Group Benefit
•Building Permits
•Planning and Zoning
Approval
•Engineering Development
Review

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 6
• Limitations posed by an external agency. The State or an outside agency will occasionally set a maximum, minimum, or limit on the jurisdiction’s ability to charge a fee. Examples include time spent copying and retrieving public documents and/or transportation permits. • Encouragement of desired behaviors. Keeping fees for certain services below full cost recovery may provide better compliance from the community. For example, if the cost of a permit to replace a water heater in a residential home exceeds the cost of the water heater itself, many citizens will avoid applying for the permit.
• The benefits received by the service user and the community at large are mutual. Many services that directly benefit a group or individual equally benefit the community. Examples include Planning Design Review, historical dedications, and certain types of special events.

The Matrix Consulting Group recognizes the need for policies that intentionally subsidize certain activities. The primary goals of a User Fee Study are to provide a fair and equitable basis for determining the costs of providing services and ensure that the Town complies with State law.

SUMMARY OF LEGAL RESTRICTIONS AND POLICY CONSIDERATIONS Once the full cost of providing services is known, the next step is to determine the “rate” or “price” for services at a level that is up to, but not more than, the full cost. The Town Council is responsible for this decision, which often involves balancing service levels and funding sources. The placement of a service or activity within the continuum of benefit received may require extensive discussion and, at times, fall into a “grey area.” However, with the resulting cost-of-services information from a User Fee Study, the Town Council can be assured that the adopted fee-for-service is reasonable, fair, and legal. Overall, the Town staff has reviewed all fees for service in this analysis. Where subsidies were identified, they recommended increases where appropriate to reduce the deficit; and where over-recoveries were identified, they reduced the fee to comply with the law.

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 7
The Matrix Consulting Group utilizes a cost allocation methodology commonly known and accepted as the “bottom-up” approach to establishing User Fees. The term means that several cost components are calculated for each fee or service. These components then build upon each other to comprise the total cost for providing the service. The following chart describes the components of a full cost calculation:

The following subsections discuss the two components of the full cost basis.

TIME ESTIMATION
The use of time estimates is a reasonable and defensible approach, especially since experienced staff members who understand the Town's service levels and processes developed these estimates. The project team worked closely with Town staff in developing time estimates with the following criteria:
• Estimates are representative of average times for providing services. Extremely difficult or abnormally simple projects are not factored into the analysis.
• Estimates reflect the time associated with the position (s) that typically perform the service. • Estimates are reviewed by the project team for “reasonableness” against their experience with other agencies.
• Estimates were not based on time-in-motion studies, as they are not practical given the scope of services and time frame for this project.
• Estimates align with current or proposed staffing levels to ensure there is no over-allocation of staff resources across fee- and non-fee-related activities.

Matrix Consulting Group agrees that, while the use of time estimates is not perfect, it is the best available alternative for establishing a standard level of service on which to base a jurisdiction’s fees for service, and it meets the requirements of California law.

The alternative to fixed-fee pricing based on time estimates is billing on a “time and materials” or “Deposit” basis, where the applicant pays for hours worked plus any direct expenses incurred. This approach is used when a project’s scope, duration, or complexity cannot be reliably estimated upfront.

For example, when requirements are likely to evolve, the work is exploratory, or the engagement is openended. Time and Materials or Deposit-based fees shift scope risk from the provider to the applicant while

TIME ASSUMPTION
(by position)

FULLY BURDENED
HOURLY RATE Total Cost

USER FEE STUDY METHODOLOGY

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 8
giving both parties flexibility to adapt as the work unfolds. Therefore, Matrix Consulting Group has recommended taking a deposit and charging Actual Costs for such fees as appropriate, as itemized in the current fee schedule.

FULLY BURDENED HOURLY RATES
The fully burdened hourly rates calculated through this study include the following components:
• Salaries: FY25-26 Budgeted salaries were utilized and consolidated at the positional level. • Benefits: FY25-26 Budgeted benefits were utilized and consolidated at the positional level. • Productive Hours: Based on Portola Valley’s current personnel system rules, working or productive hours were calculated. This means taking the starting total working hours and reducing the hours by vacation, sick, holidays, training, and administrative leave, based on each bargaining unit • Departmental/Divisional Overhead: This covers internal service charges and operating supplies, such as vehicles and other supplies. Additionally, this component includes the cost of administrative support (e.g., the Planning & Building Director and Administrative Analyst). • Townwide Overhead: This captures support provided by the Town Council, Town Manager, Town Clerk, Town Attorney, Finance, and Human Resources. The costs are based on the previous CAP study.

Together, these components generate fully burdened hourly rates by position/classification and/or department/division. These rates were multiplied by the time assumptions to calculate the full cost of services noted in this report.

In addition to staff time and fully burdened hourly rates, parks and recreation services may include additional cost components related to materials and facility use.

Material costs reflect the use of equipment, supplies, and space necessary to deliver programs and activities. Participation and utilization also play a significant role in determining per-unit costs.

While direct and material costs establish the total cost of a program or activity, program-based services are influenced by enrollment levels, where higher participation reduces the cost per participant. Similarly, rental and facility-based services are driven by estimated hours of use, with utilization directly impacting per-unit costs. As a result, variations in participation and utilization may contribute to differences in cost recovery across services.

DIRECT
(Salaries, Benefits,
Productive Hours, Overhead,
etc.)

MATERIAL COST
(Cost of Space, Licensing or
Contract Cost, etc.)
Total Cost

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 9
The motivation behind a cost-of-services (User Fee) analysis is to enable Town Council and Departmental staff to maintain services at a level that is both acceptable and effective for the community, and to maintain control over the policy and management of these services.

It should be noted that the results presented in this report are not a precise measurement. In general, a cost-of-service analysis takes a “snapshot in time,” using a fiscal year's financial and operational information. Changes to the structure of fee names, along with the use of time estimates, allow only for a reasonable projection of subsidies and revenue. Consequently, Town Council and Department staff should rely conservatively upon these estimates to gauge the impact of implementation going forward.

The discussion of results in the following chapters is intended to summarize the extensive cost allocation documentation produced during the Study. Each chapter will include detailed cost calculation results for each fee, including the following:
• Modifications: discussions regarding any proposed revisions to the current fee schedule, including elimination or addition of fees.
• “Per Unit” Results: comparison of the full cost of providing each unit of service to the current fee for each unit of service (where applicable).

The full analytical results were provided to Town staff under separate cover from this summary report.

RESULTS OVERVIEW

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 10
The various fees within this section of the Town’s fee schedule are administered or overseen by Finance and Clerk staff. These include banner fees, business license application processing, copy fees, EV charging fees, and miscellaneous state-set fees. The following sections discuss fee-schedule modifications and detailed per-unit results for fee-related services administered by Finance and Clerk staff.

FEE SCHEDULE MODIFICATIONS
The project team worked with Town staff to review and augment the current fee schedule. Various fees were added and modified to reflect the current fee-based services offered. The following modifications were proposed to the fee schedule.

New Fees
Five (5) fees were added to the fee schedule to capture services the Town is proposing to offer. • ‘Business License – Application Processing Fee’
• ‘Special Event Business License’
• ‘Verification of Life’
• ‘Returned Check’
• ‘Subpoena Response’
Modified Fees
Staff proposed modifying the following fees to better reflect the services the Town offers. • To align with state regulations, the fees associated with cost recovery for Town-owned and operated EV Charging stations were calculated as a per-kilowatt-hour (kWh). • Fees associated with Horse permits were moved to the Planning section of the fee schedule as those staff review, inspect, and administer the permit.

The noted modifications ensure that the proposed fee schedule more accurately reflects the services provided by staff.

DETAILED RESULTS
Fees within the Administrative section include banner fees, business license application processing, copy fees, EV charging fees, and miscellaneous state-set fees. The total cost calculated for each service includes direct and indirect costs (e.g., services & supplies, Departmental and Townwide overhead, etc.).

ADMINISTRATIVE

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MATRIX CONSULTING GROUP 11
The following table details, for each fee-based service, the fee name, the current fee, the calculated total cost, and the associated difference.

TABLE 4: TOTAL COST PER UNIT RESULTS – ADMINISTRATIVE
Fee Name Current Fee Total Cost Difference
Banner / Sign Fee $35 $207 ($172)
Business License
Application Processing Fee New $231 N/A
Special Event Business License New $52 N/A
State CASp (SB1186)1 $4 $4 $0
Copying Fees
Flash Drive Copying $14 $10 $4
Paper Documents2 $0.35 $0.35 $0.00
Electric Vehicle Charging Station
Electric Vehicle Charging Fee3 Modified $0.43 N/A
Misc. Fees
Verification of Life New $51 N/A
Returned Check4 New $25 N/A
Subpoena Response5 New $15 N/A
Of the fees currently charged, staff worked with the project team to ensure the total calculated costs appropriately capture the current effort required to provide the services. Where appropriate, fees were reviewed to ensure they comply with the associated state maximums. The table highlights where current administrative fees align with or diverge from the cost of service, providing a clear basis for the Town to evaluate potential adjustments and determine appropriate cost recovery levels moving forward. 1 Assembly Bill (AB) 1379
2 GOV § 7922.530
3 Cal. Code Regs., tit. 4, §§ 4001–4002.11 4 CIV § 1719(a) 5 EVI § 1563(b)(6)

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 12
The Building Division is responsible for reviewing and inspecting all structural, mechanical, electrical, and plumbing developments in accordance with the Building Code. The Town contracts with various agencies to provide building services. Fees assessed by this Division are in relation to these responsibilities and are assessed based on valuation or collected as a flat fee for service. The following sections discuss feeschedule modifications and detailed per-unit results for fee-related services administered by Building staff.

FEE SCHEDULE MODIFICATIONS
The project team worked with Town staff to review and augment the current fee schedule. Various fees were modified to reflect the current fee-based services offered. The following modifications were proposed:
• A valuation table was developed that establishes a base fee at defined project valuation thresholds, with an additional fee assessed for each incremental $1,000 (or fraction thereof) above the threshold.

Under this framework, the building permit fee is derived from the applicable valuation range, and the plan review and Engineering review fees are calculated as a percentage of the building permit fee. • Various stand-alone fees were established to account for services the Town already administers but would like to charge for at a flat fee for service rather than by valuation. These fees include permit extensions and reactivations, after-hours inspections and re-inspections, technology and general plan maintenance surcharges, solar and photovoltaic systems, residential re-roofs, signs, etc. • ‘Temporary Occupancy Permit’ and ‘Temporary Gas or Electrical’ permits were moved from the Planning section to the Building fee schedule because the Building staff reviews, inspects, and administers these permits.

The noted modifications ensure that the proposed fee schedule more accurately reflects the services provided by staff.

DETAILED RESULTS
Building administers plan review and inspection fees for structural, electrical, mechanical, and plumbing.

The total cost calculated for each service includes direct and indirect costs (e.g., services & supplies, Departmental and Townwide overhead, etc.). As the Building Division modified its entire fee structure and/or developed new fees for services, there is no exact current fee amount to compare to; therefore, the following table shows only the full cost calculated in this study for Building-related services.

BUILDING

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 13
TABLE 5: TOTAL COST PER UNIT RESULTS – BUILDING
Fee Name Total Cost
Building Plan Check Fees
Plan Review - % of Permit Fee 55%
Engineering Plan Review - % of Permit Fee 79%
Building Permit Fees
New Buildings, Additions, Tenant Improvements, Residential Remodels $1 to $2,000 Valuation $513
$2,000 to $25,000 Valuation
Project valued at $2,000 $513
For each additional $1,000 or fraction thereof $14.00
$25,000 to $50,000 Valuation
Project valued at $25,000 $835
For each additional $1,000 or fraction thereof $12.88
$50,000 to $100,000 Valuation
Project valued at $50,000 $1,157
For each additional $1,000 or fraction thereof $21.23
$100,000 to $500,000 Valuation
Project valued at $100,000 $2,219
For each additional $1,000 or fraction thereof $6.43
$500,000 to $1,000,000 Valuation
Project valued at $500,000 $4,790
For each additional $1,000 or fraction thereof $5.60
$1,000,000 to $5,000,000 Valuation
Project valued at $1,000,000 $7,588
For each additional $1,000 or fraction thereof $1.30
$5,000,000+ Valuation
Project valued at $5,000,000 $12,800
For each additional $1,000 or fraction thereof $0.65
Mechanical, Electrical, and/or Plumbing Permit Fees
Mechanical 15%
Electrical 15%
Plumbing 15%
Building Flat Fees
Bathroom or Kitchen Remodel (non-structural) $720
Stucco / Siding $440
Residential Re-Roof $440
Doors, Windows, Skylights (Change Out Only)
5 or less $440
Each Additional $70
Swimming Pool, Spa
Swimming Pool $1,571
Spa – In Ground $881
Spa – Above Ground / Prefabricated $708
Signs
Pole or Freestanding $800
Wall Mounted $536
Monument $800
Demolition $536

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 14
Fee Name Total Cost
Construction and Demolition Waste Management Review Fee $440 Base $440
Each Additional $440
Work Without a Permit6 2x the Permit Fee
Permit Extension $291
Permit Reactivation $291
Technology Surcharge 5%
General Plan Maintenance Fee 16%
Temporary Occupancy Permit $708
Temporary Gas or Electrical $513
Generator Permit $463
Solar / Photovoltaic
Single-Family Residential7
Roof Mounted
15kW or Less $450
Each Additional kW Above 15kW $15
Ground Mounted
15kW or Less $450
Each Additional kW Above 15kW $15
Commercial / Multi-Family8
Roof Mounted
50kW or Less $1,000
Per kW Between 50kW - 250kW $7
Each Additional kW Above 250kW $5
Ground Mounted
50kW or Less $1,000
Per kW Between 50kW - 250kW $7
Each Additional kW Above 250kW $5
Solar APP+ $191
EV Charging Station
Residential $536
Commercial $1,072
Energy Storage System (ESS)
Residential $536
Commercial $1,072
Misc Fees
After Hours Inspection $231
Re-Inspection Fee $161
Alternate Means and Methods $195
Excessive Plan Review (4th and subsequent) $184
Revisions to Approved Plans $184
This new, streamlined fee schedule for the Building division modernizes the fee structure to be more consistent with the Town's project types and industry standards. 6 PVMC 25.04.020
7 GOV § 66015 (a)
8 GOV § 66015 (b)

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 15

PROJECT VALUATION VERIFICATION
One of the inherent challenges of a valuation-based permitting system is a jurisdiction’s ability to verify the accuracy of contractor-submitted project valuations. Because permit fees are calculated as a function of project valuation, applicants have a financial incentive to submit the lowest possible estimate, which can result in fees that do not reflect the true scope and cost of the proposed work.

Without a mechanism to validate submitted valuations, jurisdictions risk systematic under-collection of permit revenue and an inequitable distribution of costs across applications.

A common practice among jurisdictions to address this challenge is the use of construction cost tables published by the International Code Council (ICC). The ICC publishes these tables twice annually, providing average construction costs per square foot, organized by occupancy type and construction material. These tables provide staff with a standardized reference point against which contractorsubmitted valuations can be cross-checked, providing a defensible, widely recognized basis for flagging estimates that appear unreasonably low.

However, because the ICC tables are based on national averages, they may not accurately reflect construction costs in high-cost markets such as the Bay Area, where labor and material costs routinely exceed the national norm. Relying solely on the ICC table in this context could result in valuations that fall short of what local market conditions would support.

To address this limitation, the Town should adopt the ICC tables as the standard for validating contractor-submitted valuations and apply a regional cost modifier published annually by RS Means. RS Means is a widely recognized construction cost data provider, with regional modifiers designed to adjust national baseline costs to reflect local market conditions. By combining the ICC table with the appropriate RS Means regional modifier, the Town would have a more accurate, locally relevant benchmark for verifying project valuations, helping ensure that permit fees more closely reflect the true cost of construction activity within the Town.

The Town should develop a policy that codifies the use of ICC tables and the RS Means regional modifier as a basis for evaluating the validity of contractor-submitted valuations.

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 16
The Code Enforcement Division is responsible for ensuring compliance with the Town’s Municipal Code through complaint investigation, site inspections, and enforcement actions related to property maintenance, zoning, and public nuisance violations. The Town utilizes a combination of in-house staff and contracted services to carry out these functions. Fees assessed by this Division are associated with staff time spent on inspection, reinspection, and research-related activities, and may be structured as flat fees or hourly charges depending on the service provided. The following sections discuss the development of a code-enforcement-specific fee schedule and detailed per-unit results for administered fee-related services.

FEE SCHEDULE DEVELOPMENT
The project team worked with Town staff to review the municipal code (PVMC 18.80.010-.040) and developed a schedule for collecting fees and fines related to investigations, research, and abatement efforts associated with code enforcement activities.

Fines and penalties are intended to discourage specific behaviors and are not subject to the same costrecovery regulations as user fees. Instead, they are established based on policy considerations.

Accordingly, fines and penalties were excluded from the total cost analysis. The project team calculated costs only for inspection and research-related activities, as these services are subject to “not-to-exceed” cost recovery requirements.

DETAILED RESULTS
In addition to fines outlined in the municipal code, Code Enforcement may administer fees for inspections and permit investigations. The total cost calculated for these services includes direct and indirect costs (e.g., services & supplies, Departmental and Townwide overhead, etc.). The following table details, for each fee-based service, the fee name, unit, and the calculated total cost.

TABLE 6: TOTAL COST PER UNIT RESULTS – CODE ENFORCEMENT Fee Name Unit Total Cost
Code Enforcement Inspection / Reinspection Per Inspection $290 Permit Related Enforcement
Permit Investigation Fee Per Hour $120
The calculated costs reflect the time of the Town and contracted staff to administer the services.

CODE ENFORCEMENT

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 17
The Engineering Division is responsible for reviewing development permits, conducting construction inspections, reviewing public and private improvements, administering encroachment permits, and coordinating capital improvement activities. The Town contracts with CSG Consulting to provide Engineering services. Fees assessed by this Division relate to these responsibilities and are charged as deposits or flat fees for service. The following sections discuss fee-schedule modifications and detailed per-unit results for fee-related services administered by Engineering staff.

FEE SCHEDULE MODIFICATIONS
The project team worked with Town staff to review and augment the current fee schedule. Various fees were added and modified to reflect the current fee-based services offered. The following modifications were proposed to the fee schedule.

New Fees
Seven (7) fees were added to the fee schedule to capture services the Town is proposing to offer. • ‘Debris Box’
• ‘Trenching Fee’
• ‘Traffic Control Plan Review For Standard Lane Closure’ • ‘Traffic Control Plan Review for Long Term (over three days) Closures’ • ‘Flood Zone Letter Research’
• ‘Inspection Deposit’
• ‘Effort Out of Standard Scope’
Modified Fees
Staff proposed modifying the following fees to better reflect the services the Town offers. • Various stand-alone fees were established to account for services the Town already administers but would like to charge for at a flat fee for fee or collect a deposit to bill against. These fees include encroachment application and inspection deposit, additional engineering plan review and inspection, fence, wall, irrigation, driveway cuts, etc.
• The ‘Certificate of Compliance’ fee was moved from the Planning section to the Engineering fee schedule because the Engineering staff reviews, inspects, and administers these permits.

The noted modifications ensure that the proposed fee schedule more accurately reflects the services provided by staff.

ENGINEERING

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MATRIX CONSULTING GROUP 18

DETAILED RESULTS
Engineering administers plan review and inspection fees associated with encroachments and development services. The total cost calculated for each service includes direct and indirect costs (e.g., services & supplies, Departmental and Townwide overhead, etc.). As with the building division, the changes in the Engineering division do not adequately allow for comparison with the current fee; therefore, the following table shows only the full cost calculated in the study. Anything denoted with a (D) is considered a deposit.

TABLE 7: TOTAL COST PER UNIT RESULTS – ENGINEERING
Fee Name Total Cost
Encroachment into Public Right-of-Way
Application Fee $382
Encroachment Inspection (D) $500
Debris Box $194
Trenching Fee (D) $17
Fence, Wall, Irrigation, Driveway Cuts (D) $17
Traffic Control Plan Review For Standard Lane Closure (D) $500 Traffic Control Plan Review for Long Term (over three days) Closures (D) $1,000 Misc. Engineering Fees
Flood Zone Letter Research (D) $500
Engineering Inspection (D) $2,000
Additional Engineering Plan Review $287
Additional Engineering Inspection $230
Work Without Permit9 2x the Permit Fee
Effort out of Standard Scope Varies, depending on scope Certificate of Compliance $6,500
The streamlined fee structure captures the key service area while allowing flexibility to capture the full cost by charging for services based on an initial deposit. This is a standard approach for engineering services, as the scope of the project can vary.
9 PVMC 25.04.20

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 19
The Planning Division is responsible for overseeing the Town’s general plan and maintaining and implementing policies, ordinances, and amendments related to development. The Town contracts with CSG Consulting and Good City Planning to provide Planning services. Fees assessed by this Division relate to these responsibilities and are charged as deposits or flat fees for service. The following sections discuss fee-schedule modifications and detailed per-unit results for fee-related services administered by Planning staff.

FEE SCHEDULE MODIFICATIONS
The project team worked with Town staff to review and augment the current fee schedule. Various fees were added and modified to reflect the current fee-based services offered. The following modifications were proposed to the fee schedule.

New Fees
Thirteen (13) fees were added to the fee schedule to capture services the Town is proposing to offer. • ‘Pre-Application Review’
• ‘Architectural Review – Commercial’
• ‘Architectural Review – Multi-Family’
• ‘CEQA Exemption Filing’
• ‘Telecommunications Tower’
• ‘SB9’
• ‘SB9 Lot Split’
• ‘Development Agreement’
• ‘Annexation’
• ‘ASCC Review’
• ‘Planning Inspection’
• ‘Planning Reinspection’
• ‘Anything not covered under the above permits’
Modified Fees
Staff proposed modifying the following fees to better reflect the services the Town offers. • Currently, the Town collects a flat fee for Town staff time and a deposit against which contract staff bills. To streamline administration and provide a more consistent approach for applicants, a majority

PLANNING

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MATRIX CONSULTING GROUP 20
of Planning fees are proposed to be collected as initial deposits against which Town staff and contractors will bill.
• With the exception of ‘Map Modification’, Geology review costs associated with applications are now captured in the calculated deposit.
• Horse permits were moved from the Administrative section to the Planning fee schedule because the Planning staff reviews and administers these permits.
• The existing ‘Pre-Application Meeting’ fee was expanded into two separate deposits to better reflect the distinct phases of the process. The ‘Pre-Application Meeting’ deposit accounts for staff time associated with meeting preparation, research, and the meeting itself, while the ‘Pre-Application Review’ deposit accounts for staff review of submitted materials and the preparation of initial feedback for applicants.

The noted modifications ensure that the proposed fee schedule more accurately reflects the services provided by staff.

DETAILED RESULTS
Planning administers fees for architectural review, site development, conditional use permits, variance, subdivision maps, and various other miscellaneous applications and reviews. The total cost calculated for each service includes direct and indirect costs (e.g., services & supplies, Departmental and Townwide overhead, etc.). The following table details, for each fee-based service, the fee name, the current fee, the calculated total cost, and the associated difference. All non-deposit-based fees are denoted with an (F).

TABLE 8: TOTAL COST PER UNIT RESULTS – PLANNING
Fee Name
Combined Deposit &
Current Fee
Calculated
Deposit10 Difference
Pre-Application Meeting $1,828 $500 ($1,328)
Pre-Application Review New $2,000 $1,444
Architectural Review
New Residence $7,594 $5,500 $2,094
Guest House / Addition $5,944 $4,500 $1,444
Commercial New $7,000 N/A
Multi-Family New $7,500 N/A
Amendment $3,979 $4,000 ($21)
Site Development Permit
51-100 Cubic Yards $4,499 $8,500 ($4,001)
101-1,000 Cubic Yards $7,196 $12,000 ($4,804)
Greater than 1,000 Cubic Yards $9,052 $12,500 ($3,448)
Conditional Use Permit
Standard (New or Major Amendment) $14,681 $6,000 $8,681 Planned Unit Development $14,528 $6,500 $8,028
Amendment (Minor) $8,848 $4,000 $4,848
Cannabis $6,940 $2,000 $4,940
10 To maintain consistency with industry standards, all deposits are rounded to the nearest $500.

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 21
Fee Name
Combined Deposit &
Current Fee
Calculated
Deposit10 Difference
Variance
Variance $11,361 $2,000 $9,361
Lot Line Adjustment
Lot Line Adjustment $10,300 $11,500 ($1,200)
Geology Review
Map Modification $4,923 $1,000 $3,923
Subdivision
Preliminary Map $10,366 $2,000 $8,366
Tentative Map $14,659 $11,500 $3,159
Final Map $5,404 $7,500 ($2,096)
Map Time Extension $1,534 $500 $1,034
Tentative Map Amendment $4,567 $5,500 ($933)
Final Map Revision $7,067 $3,500 $3,567
Environmental
Initial Assessment $10,479 $1,500 $8,979
Mitigated / Negative Declaration $26,423 $3,000 $23,423 CEQA Exemption Filing New $1,000 N/A
General Plan Amendment
General Plan Amendment $14,737 $6,000 $8,737
Zoning Ordinance Amendment
Zoning Ordinance Amendment $12,367 $3,000 $9,367
Fence Permit
Fence Permit Modified $1,000 N/A
Tree Removal Permit
Tree Removal Permit $96 $1,000 ($904)
Miscellaneous
Residential Data Report (Zoning Verification Letter) $151 $1,000 ($849) Allowed Floor Area & Impervious Service Calculation $151 $500 ($349) Appeal $14,858 $2,500 $12,358
Additional Plan Review or Revision (F) Per Hour as Billed $193 N/A Zoning Permit / Fee $1,631 $1,000 $631
Telecommunications Tower New $8,500 N/A
SB9 New $3,000 N/A
SB9 Lot Split New $7,000 N/A
Development Agreement New $5,000 N/A
Annexation New $11,500 N/A
ASCC Review New $2,500 N/A
Planning Inspection (F) New $354 N/A
Planning Reinspection (F) New $177 N/A
Anything not covered under the above permits New $3,000 N/A Work Without a Permit11 2x the Permit Fee
Horse Permit
New (F) $68 $70 ($2)
Renewal (F)
Residential $20 $31 ($11)
Commercial $27 $47 ($20)
11 PVMC 25.04.020

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 22
Fee Name
Combined Deposit &
Current Fee
Calculated
Deposit10 Difference
Inspection (F) Per Hour as Billed $218 N/A
Overall, the planning division primarily charges for its services through a deposit. The deposit helps cover in-house staff review and consultant support. This practice is standard for many smaller agencies. The purpose of this analysis was to bring Planning into compliance with industry standards by charging a single deposit for each fee, thereby making the initial deposit amount transparent. As such, the differences noted in the table are not truly reflective or applicable.

Time-and-materials or deposit-based fees are another mechanism for accounting for the various reviews undertaken by Planning staff. As deposits are either refunded if unused or replenished as costs are incurred, they are structured to recover the full cost of service while providing developers with a more accurate cost estimate. The project team worked with staff to evaluate whether current deposit thresholds were sufficient to cover the anticipated cost of providing services; therefore, the difference does not represent a true deficit or subsidy.

ADMINISTRATIVE FEES
The Town should impose an administrative charge on applicant deposits to recover the indirect costs of administering these services. These costs include, but are not limited to, staff time spent coordinating between applicants and outside consultants, managing deposit accounts, processing invoices, tracking project balances, and providing status updates to applicants.

At present, these administrative activities are absorbed by the Department, effectively subsidizing applicant-driven work with general fund resources. Applying a modest administrative charge is consistent with standard governmental and consulting practice.

To establish a defensible and easily administered rate, Matrix Consulting Group recommends adopting the federal de minimis indirect cost rate as published in the Uniform Guidance (2 CFR Part 200). The de minimis rate, currently 15% of modified total direct costs, is widely accepted across federal, state, and local government programs.

The charge should be clearly disclosed in the deposit agreement and applied to direct consultant costs and other direct charges passed through to the applicant.

The Town should codify an Administrative Fee based on the Federal de minimis indirect cost rate, applicable to any deposits that utilize outside services.

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 23
Recreation oversees the Town’s parks and recreational programs and services. This includes all indoor and outdoor rentals, coordination of class instructors, and management of special events held in Portola Valley. Fees assessed by this Division relate to these responsibilities and are charged as deposits or flat fees for service. The following sections discuss fee-schedule modifications and detailed per-unit results for fee-related services administered by Recreation staff.

FEE SCHEDULE MODIFICATIONS
The project team worked with Town staff to review and augment the current fee schedule. Various fees were added and modified to reflect the current fee-based services offered. The following modifications were proposed to the fee schedule.

New Fees
Six (6) fees were added to the fee schedule to capture services the Town is proposing to offer. • ‘Application Processing Fee (Instructor)’
• ‘Facility Rental Fees – Application Processing’
• ‘Facility Rental Fees – Storage Fee’
• ‘Facility Rental Fees – Cleaning Fee’
• ‘Facility Rental Fees – Community Hall – Public Agency’ • ‘Sport User Fees – Cleaning Fee’
Modified Fees
Staff proposed modifying fees related to Special Events from deposits based on group size to an application fee and a single deposit for litter services. This modification better reflects the Town staff’s efforts in providing this service.

The noted modifications ensure that the proposed fee schedule more accurately reflects the services provided by staff.

DETAILED RESULTS
Recreation administers fees and deposits for picnic, field, and facility rentals, processes fees for instructor classes, and reviews special event applications. The total cost calculated for each service includes direct and indirect costs (e.g., services & supplies, Departmental and Townwide overhead, etc.).

The following table details, for each fee-based service, the fee name, the current fee, the calculated baseline cost, and the associated difference.

RECREATION

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MATRIX CONSULTING GROUP 24
TABLE 9: TOTAL COST PER UNIT RESULTS – RECREATION
Fee Name Current Fee
Baseline
Costs Difference
Classes
Application Processing Fee (Instructor) New $246 N/A
Facility Rental Fees / Deposits
Application Processing New $492 N/A
Date Change Fee 20% of rental charge $114 N/A
Storage Fee New $144 N/A
Cleaning Fee New $25 N/A
Community Hall
Resident Only Fee $2,777 $1,028 $1,749
Community Hall - Memorial Service
Current / Past Resident Only $1,389 $1,028 $361
Community Hall - Local Non-Profit within Town Limits
No Fundraiser $0 $1,028 ($1,028)
Fundraiser $1,022 $1,028 ($6)
Community Hall - Public Agency
Public Agency New $1,028 N/A
Alder or Buckeye Room (minimum rental is 2 hours)
Resident Fee $111 $288 ($177)
Kitchen (must rent with another room)
Rented with Community Hall $0 $83 ($83)
Rented with Alder or Buckeye Room - Resident $111 $83 $28 Redwood Grove (Weddings Only)
Resident Fee $172 $18 $154
Staff Time / Additional Consultation for Rentals
First Hour $0 $246 ($246)
Each additional hour (fully burdened staff hourly rate) $65 $246 ($181) Sport User Fees
Date Change Fee 20% of rental permit cost $114 N/A
Cleaning Fee New $25 N/A
Town Fields
Town Sponsored; Schools (Town Council; Town Committees; PV School District; Woodside Priory) $0 $137 ($137)
Local Organized Youth Leagues (Alpine/West Menlo Little League; AYSO; Kidz Love Soccer) $44 $137 ($93)
Local Organized Youth Clubs (Alpine Strikers; CYSO) $67 $137 ($70) Local Organized Adult Leagues (PV Adult Soccer League; PV Softball) $67 $137 ($70)
Local Organized Adult Clubs (PV Soccer Club) $100 $137 ($37) Picnic Spaces
Next to Little Peoples' Park - Town Center $3 $13 ($10) Ford Field Parking Lot
Residential
Parking Lot $108 $117 ($9)
Commercial
Parking Lot $108 $117 ($9)
Parking Lot $3,240 $3,529 ($289)
Special Events

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 25
Fee Name Current Fee
Baseline
Costs Difference
Special Event Permit New $246 N/A
Generally, the Town under-recovers for its recreation-related services. Areas with over-recovery are for rental rates, which can be set based on market rates. The Town should review the results of this analysis and, where appropriate, adjust these rates to help bridge the gap between current fees and the baseline cost. New service fees were codified to better capture additional services provided by town staff that are not currently covered by existing fees.

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 26
The project team evaluated cost recovery for fee-related services by comparing Town-only revenue to the Town-Only cost of providing those services. Full cost includes budgeted direct operational costs and indirect expenses associated with Town staff, while revenue reflects only what the Town retains under revenue agreements with outside consultants. This revenue-to-full cost comparison provides a high-level view of how much of the Town’s total cost of service delivery is currently offset by user fees, and reflects only the portion of costs recovered through fees, excluding other revenue sources used to subsidize services and non-fee-related services.

The cost recovery figures presented in this report are intended to provide a basis for policy development discussions among Council members and Town staff, and do not represent a recommendation on where or how Council should act. The setting of the “rate” or “price” for services, whether at 100 percent full cost recovery or lower, is a policy decision to be made only by Council, with input from Town staff and the community.

User fees associated with Building, Planning, and Public Works generally include services that provide an individual or private benefit. Cost recovery for these areas tends to be higher and receives minimal, if any, subsidy through other revenue sources. Conversely, cost recovery targets for Recreation and Code Enforcement are often set based on the level of community benefit provided. Services that offer broad public benefit or are intended to encourage participation are typically subsidized, while services that provide exclusive use or individual benefit are more likely to achieve full cost recovery. The table below compares budgeted revenue with full cost, highlighting differences, cost recoveries, and typical costrecovery ranges.

TABLE 10: COST RECOVERY – REVENUE TO FULL COST COMPARISON Division/Department
Town Only
Revenue
Town Only
Costs Diff ($) Cost Recovery
Typical Cost
Recovery Range
Building $300,700 $323,150 ($22,450) 93% 80% - 100%
Code Enforcement $0 $59,557 ($59,557) 0% 20% - 50%
Planning $127,500 $388,039 ($260,539) 33% 50% - 80%
Public Works $39,000 $91,955 ($52,955) 42% 80% - 100%
Recreation $144,200 $247,065 ($102,865) 58% 50% - 80%
Building and Recreation fall within or above the typical cost recovery range, while all other divisions are currently below their typical ranges. Whenever cost recovery is below 100%, it indicates that a portion of service delivery is subsidized by other Town revenue sources. These results are not prescriptive; rather, they provide a clear picture of how fee revenues align with the full cost of service and where funding gaps exist.

This information establishes a foundation for evaluating whether current cost recovery levels are intentional and aligned with Town priorities. It can also inform future discussions on fee adjustments,

ANNUAL IMPACTS

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
MATRIX CONSULTING GROUP 27
subsidy levels, and long-term financial sustainability, including the potential annual revenue impacts of fee changes.

Based on these findings, the Town may consider prioritizing higher cost recovery for services that provide a greater individual or exclusive benefit, while continuing to subsidize core services intended to remain broadly accessible.

To support consistent and transparent decision-making, the Town should consider formalizing or updating its cost recovery policies. These policies can be applied at a Town-wide or department-specific level, providing a framework for setting fees and allocating subsidies based on the level of community benefit.

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The following sections provide guidance on where and how to increase fees, and on how to determine annual update factors.

FEE ADJUSTMENTS
This study has documented and outlined on a fee-by-fee basis where the Town is under- and overcollecting for its fee-related services. Town and Department management will now need to review the study results and adjust fees in accordance with the Department's and Town’s philosophies and policies.

The following graphic outlines the major options the Town has in adjusting its fees:
▼
REDUCE
▲

FULL COST
▶

PHASE IN
Fees above cost must be reduced to
match actual cost of service to be in
compliance.

Fees below cost can be increased
immediately to full recovery.

Large gaps can be closed gradually
over a set period.

The Governmental Finance Officers Association’s (GFOA) best practices for Establishing Government Charges and Fees state that governmental entities should adopt formal policies regarding charges and fees which include the jurisdiction’s intention to recover the full cost or partial costs of providing services, sets forth circumstances under which the jurisdiction might set a charge or fee at less than or more than 100% of full cost, and outlines the considerations that might influence pricing decisions.

The development of cost-recovery policies and procedures ensures that current and future decisionmakers understand how and why fees are determined and set. It provides a roadmap for ensuring consistency as the Town moves forward. Policies can be general and apply broadly to Departments or Divisions as a whole, or to specific fee categories or service types. Fee categories or service-specific policies would allow the Town to control cost recovery across different service types and ensure alignment with fiscal goals and community benefits.

ANNUAL ADJUSTMENTS
Conducting an annual comprehensive analysis of fee-related services and costs would be quite cumbersome and costly. The general recommendation is to conduct a comprehensive fee analysis every 5 to 7 years. This allows jurisdictions to ensure they account for organizational changes, such as staffing

COST RECOVERY CONSIDERATIONS
RECOMMENDATION #1
The Town should review current cost-recovery levels and adopt a formal cost-recovery policy.

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
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levels and merit increases, as well as process efficiencies, code or rule changes, or technology improvements. Developing annual update mechanisms enables jurisdictions to maintain current costrecovery levels while accounting for increases in staffing or permit-service expenditures. The following graphic provides insight into two options.

COLA / Personnel Cost Factor
Annual salary adjustments (typically 2–3%) to offset rising cost of living. Not tied to merit or seniority.

CPI / ECI Factor
Regional cost indicators calculated by the Bureau of
Labor Statistics. Released at various intervals, specific to states and regions.

The Town should review its current options, both internally (COLA) and externally (CPI), to determine which better reflects the Town’s goals. If choosing a CPI factor, the Town should specify which CPI to use, including the specific region and adoption date. If selecting an internal factor, the Town should again specify which factor, if multiple exist.

COMPREHENSIVE ANALYSIS UPDATE
The purpose of a comprehensive update is to revisit the analytical structure, service-level estimates, and assumptions from the previous study, and to account for any significant shifts in cost components, organizational structures, code changes, etc. However, conducting an annual comprehensive analysis of fee-related services and costs would be time-consuming and costly.

The Government Finance Officers Association’s (GFOA) best practices for Establishing Government Charges and Fees state that governmental entities should review and update fees periodically based on factors such as the impact of inflation, other cost increases, and adequacy of cost recovery, use of services, and the competitiveness of current rates to avoid significant infrequent fee increases.

A general rule of thumb for comprehensive fee analyses is between five and seven years, as this allows jurisdictions to account for organizational changes such as staffing levels and merit increases, as well as process efficiencies, code or rule changes, or technology improvements.

RECOMMENDATION #2
The Town should adopt an annual fee-increase mechanism to raise its fees each year to keep pace with cost-recovery goals and market conditions.

RECOMMENDATION #3
The Town should perform a comprehensive update of its Fee Assessment every 5 to 7 years.

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
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As part of the fee study for the Town of Portola Valley, Matrix Consulting Group conducted a comparative survey of user fees. Five municipalities were included in the comparative survey:

Burlingame Los Altos Hills Woodside
Hillsborough Saratoga
The project team then reviewed public documents (e.g., agenda items, staff reports, budgets, fee schedules, and ordinances) and/or contacted jurisdictions to obtain comparative information.

While this full report provides the Town with a reasonable estimate and understanding of the true costs of providing services, many jurisdictions also wish to benchmark themselves against other comparable jurisdictions to understand the local “rates” for comparable services. This type of comparative analysis allows the Town to assess which changes in fee levels its community can bear. However, benchmarking does not provide adequate information on the relationship between other jurisdictions’ costs and their fees (e.g., policy decisions to subsidize, cost-recovery goals, etc.). To contextualize this portion of the analysis, the project team provided economic and recency factors for the comparable jurisdictions.

The following sections detail factors to consider when reviewing comparative survey results, as well as practical comparisons of current fees and calculated total costs for various permits issued or services provided by the Town.

ECONOMIC FACTORS
To provide additional context for the comparative survey information, the project team collected economic data for the included jurisdictions. Three important economic factors to consider when comparing fees across multiple jurisdictions are: population, budget, and workforce size. These factors can affect how and when fees are administered, as a jurisdiction with a smaller population may choose not to charge a fee, or a smaller workforce may inhibit its ability to administer one.

The following tables rank each jurisdiction from smallest to largest for each of these economic factors:

TABLE 11: RANKING OF JURISDICTIONS BY POPULATION
Jurisdiction Population12
Town of Portola Valley 4,285
Town of Woodside 5,206
Town of Los Altos Hills 8,548
Town of Hillsborough 11,254
City of Saratoga 31,110
City of Burlingame 31,552
12 California Department of Finance estimates as of 1/1/2025 were used to determine each jurisdiction’s population.

APPENDIX – COMPARATIVE SURVEY

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
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TABLE 12: RANKING OF JURISDICTIONS BY TOTAL BUDGET
Jurisdiction FY25-26 Budget13
Town of Portola Valley $9,405,159
Town of Woodside $14,920,390
Town of Los Altos Hills $27,961,848
City of Saratoga $52,702,710
Town of Hillsborough $85,572,464
City of Burlingame $162,150,000
TABLE 13: RANKING OF JURISDICTIONS BY FTE
Jurisdiction FY25-26 Authorized FTE
Town of Portola Valley 15.87
Town of Woodside 24.75
Town of Los Altos Hills 30.00
City of Saratoga 56.60
Town of Hillsborough 98.00
City of Burlingame 240.40
Compared with the surveyed jurisdictions, the Town of Portola Valley ranks lowest when comparing population, budget, and staffing.

RECENCY FACTOR
While the above comparative information can provide some perspective on the Town’s fees relative to those of surveyed jurisdictions, other key factors to consider include the date the jurisdiction’s fee schedule was last updated and the date of the last comprehensive analysis. It is important to note that even when jurisdictions have conducted recent fee studies, their fees are not always set at full cost recovery. The comparative results show only the adopted fee for the surveyed jurisdiction, not necessarily the full cost of the comparable service.

The following tables detail when each surveyed jurisdiction last conducted a fee analysis and when they last updated their fee schedule:

TABLE 14: LAST FEE SCHEDULE UPDATE
Jurisdiction Response
City of Burlingame 2025
Town of Hillsborough 2025
Town of Los Altos Hills 2025
City of Saratoga 2026
Town of Woodside 2025
13 To ensure appropriate comparisons, full operating budget (all funds) has been used for all jurisdictions.

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
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TABLE 15: LAST FEE STUDY CONDUCTED
Jurisdiction Response
City of Burlingame 2024
Town of Hillsborough Currently ongoing
Town of Los Altos Hills 2020
City of Saratoga 2023
Town of Woodside 2020
Most of the surveyed jurisdictions have published an updated fee schedule within the last year. Other than Hillsborough, most jurisdictions have conducted a fee study within the past six years.

COMPARATIVE SURVEY RESULTS
As part of this study, the project team conducted a survey comparing the Town’s current user fees and calculated full costs with those of other identified jurisdictions. The following subsections provide a comparative look at several fee-related services offered by the Town and the surveyed jurisdictions.

BUILDING
To compare the Town’s building-related fees with those of other jurisdictions, the following graphics were developed. These graphics include permit and plan check fees for both the Town of Portola Valley and other comparable jurisdictions.
# Jurisdiction Fee Amount
1 Burlingame $27,575
2 Saratoga $13,189
3 Woodside $12,614
4 Portola Valley - Full Cost $12,380
5 Los Altos Hills $11,534
6 Hillsborough $7,872
Red line = Average Fee $14,557
New SFR $750,000 Valuation
# Jurisdiction Fee Amount
1 Burlingame $9,743
2 Portola Valley - Full Cost $5,403
3 Woodside $4,977
4 Saratoga $3,889
5 Los Altos Hills $2,995
6 Hillsborough $2,647
Red line = Average Fee $4,850
Residential Addition Valuation $175,000

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
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# Jurisdiction Fee Amount
1 Burlingame $1,868
2 Woodside $883
3 Portola Valley - Full Cost $720
4 Saratoga $632
5 Los Altos Hills $619
6 Hillsborough $573
Red line = Average Fee $915
Kitchen Remodel
# Jurisdiction Fee Amount
1 Saratoga $771
2 Los Altos Hills $619
3 Burlingame $563
4 Woodside $532
5 Portola Valley - Full Cost $440
6 Hillsborough $244
Red line = Average Fee $546
Residential Reroof (Without Architectural Review)
# Jurisdiction Fee Amount
1 Portola Valley - Full Cost $440
2 Hillsborough - Current Fee $352
3 Burlingame $275
4 Los Altos Hills $135
5 Woodside $132
6 Saratoga $90
Red line = Average Fee $197
Water Heater Permit
# Jurisdiction Fee Amount
1 Hillsborough $573
2 Portola Valley - Full Cost $536
3 Saratoga $369
4 Woodside $266
5 Los Altos Hills $230
6 Burlingame $200
Red line = Average Fee $328
Residential EV Charger

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
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The following table summarizes the results of the comparative analysis:

Based on the comparative information, Portola Valley’s total calculated costs are generally lower than the jurisdictional average. Overall, the Town’s costs generally align with fees administered in Hillsborough and Woodside.

PLANNING
To compare the Town’s planning-related fees with those of other jurisdictions, the following graphics were developed. These graphics include charges administered as both flat fees and or deposits. # Jurisdiction Fee Amount
1 Burlingame $230
2 Los Altos Hills $210
3 Hillsborough $206
4 Portola Valley - Full Cost $161
5 Woodside $159
6 Saratoga $0
Red line = Average Fee $201
Re-inspection Fee
Scenario Full Cost Fee Average Fee Full Cost vs Avg
New SFR $750,000 Valuation $12,380 $14,557 -15%
Residential Addition Valuation $175,000 $5,403 $4,850 11% Kitchen Remodel $720 $915 -21%
Residential Reroof (Without Architectural Review) $440 $546 -19% Water Heater Permit $440 $197 124%
Residential EV Charger $536 $328 64%
Re-inspection Fee $161 $201 -20%
# Jurisdiction Fee Amount
1 Portola Valley - Current Fee $1,631
2 Portola Valley - Full Cost $1,000
3 Hillsborough $685
4 Los Altos Hills $410
5 Woodside $300
6 Burlingame $217
7 Saratoga $118
Red line = Average Fee $346
ADU — Zoning Clearance

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
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# Jurisdiction Fee Amount
1 Portola Valley - Current Fee $5,944
2 Portola Valley - Full Cost $4,500
3 Saratoga $4,424
4 Woodside $4,000
5 Los Altos Hills $1,560
6 Hillsborough $1,214
7 Burlingame $822
Red line = Average Fee $2,404
Admin Design Review Addition
# Jurisdiction Fee Amount
1 Saratoga $7,776
2 Portola Valley - Current Fee $7,594
3 Los Altos Hills $7,125
4 Portola Valley - Full Cost $5,500
5 Hillsborough $4,403
6 Woodside $4,000
7 Burlingame $3,141
Red line = Average Fee $5,289
Design Review — New SFR
# Jurisdiction Fee Amount
1 Portola Valley - Current Fee $14,858
2 Hillsborough $2,556
3 Portola Valley - Full Cost $2,500
4 Woodside $1,000
5 Los Altos Hills $900
6 Burlingame $770
7 Saratoga $568
Red line = Average Fee $1,159
Appeal
# Jurisdiction Fee Amount
1 Portola Valley - Current Fee $11,361
2 Hillsborough $6,598
3 Los Altos Hills $5,200
4 Woodside $3,590
5 Saratoga $3,451
6 Portola Valley - Full Cost $2,000
7 Burlingame $1,112
Red line = Average Fee $3,990
Variance

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
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The following table summarizes the results of the comparative analysis:

Based on the comparative information, Portola Valley’s current and total calculated costs are generally higher than the jurisdictional average. Overall, the Town’s current fees generally align with those administered in Saratoga and Woodside, while the total calculated costs align with fees in Saratoga and Hillsborough.

ENGINEERING
To compare the Town’s engineering-related fees with those of other jurisdictions, the following graphics were developed. Because most of the Town’s current fees were modified, the graphics show only the Town’s full cost.
# Jurisdiction Fee Amount
1 Portola Valley - Full Cost $1,000
2 Burlingame $451
3 Hillsborough $386
4 Los Altos Hills $250
5 Saratoga $146
6 Woodside $125
7 Portola Valley - Current Fee $96
Red line = Average Fee $272
Tree Removal
Scenario Current Fee Full Cost Fee Average Fee Current vs Avg Full Cost vs Avg ADU — Zoning Clearance $1,631 $1,000 $346 371% 189%
Admin Design Review Addition $5,944 $4,500 $2,404 147% 87% Design Review — New SFR $7,594 $5,500 $5,289 44% 4%
Appeal $14,858 $2,500 $1,159 1182% 116%
Variance $11,361 $2,000 $3,990 185% -50%
Tree Removal $96 $1,000 $272 -65% 268%
# Jurisdiction Fee Amount
1 Woodside $640
2 Saratoga $500
3 Hillsborough $279
4 Portola Valley - Full Cost $194
5 Los Altos Hills $159
6 Burlingame $51
Red line = Average Fee $326
Debris Box

PORTOLA VALLEY COMPREHENSIVE USER FEE STUDY REPORT
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The following table summarizes the results of the comparative analysis:

Based on the comparative information, Portola Valley’s total calculated costs are generally lower than the jurisdictional average. Overall, the Town’s costs generally align with fees administered in Hillsborough and Los Altos Hills.

RECREATION
To compare the Town’s recreation-related fees with those of other jurisdictions, the following graphics were developed.
# Jurisdiction Fee Amount
1 Woodside $1,380
2 Hillsborough $1,231
3 Los Altos Hills $1,006
4 Portola Valley - Full Cost $951
5 Burlingame $554
6 Saratoga $500
Red line = Average Fee $934
Driveway (40 l.f.)
# Jurisdiction Fee Amount
1 Burlingame $374
2 Woodside $256
3 Hillsborough $254
4 Portola Valley - Full Cost $230
5 Los Altos Hills $215
6 Saratoga $0
Red line = Average Fee $275
Engineering Inspection (per Hour)
# Jurisdiction Fee Amount
1 Portola Valley - Full Cost $6,500
2 Portola Valley - Current Fee $6,211
3 Hillsborough $5,000
4 Los Altos Hills $3,500
5 Burlingame $3,264
6 Woodside $2,620
7 Saratoga $2,500
Red line = Average Fee $3,377
Certificate of Compliance
Scenario Full Cost Fee Average Fee Full Cost vs Avg
Debris Box $194 $326 -40%
Driveway (40 l.f.) $951 $934 2%
Engineering Inspection (per Hour) $230 $275 -16%
Certificate of Compliance $6,500 $3,377 92%

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Picnic Rentals
Jurisdiction Fee
Burlingame $126 - $332 per reservation (based on residency) Los Altos Hills Not offered
Woodside Not offered
Hillsborough $15/hr
Saratoga $24/day
Portola Valley — Current $3/person
Portola Valley — Baseline Cost $13/person
Facility Rentals
Jurisdiction Fee
Burlingame Meeting Room: $0 - $377/event ~ $500 - $800 deposit Hall: $200 - $557/hr ~ $1,000 - $1,500 deposit + staffing Los Altos Hills Meeting/Conference Room: Limited; hourly/daily with deposits Woodside Hall: $100/hr
Hillsborough Meeting Room: $25/hr
Multi-Purpose Room: $125 - $150/hr
Saratoga Meeting Room: $22 - $82/hr ~ $500 deposit & staffing cost ~ $10 application fee
Hall: $122 - $207/hr ~ $500 deposit & staffing cost ~ $10 application fee Portola Valley — Current Meeting Room: $117/hr
Hall: $1,022–$2,777/day; $100–$1,000 deposit
Portola Valley — Baseline Cost Meeting Room: $228/hr
Hall: $1,028/day
Field Rentals
Jurisdiction Fee
Burlingame $0 - $120/hour/field ~ group agreements w/ youth & non-profit Los Altos Hills $20 - $30/hour/field ~ $250 deposit ~ group agreements w/ Little League Woodside $875/month/field
Hillsborough $45/hr
Saratoga $24 - $74/hr (based on residency & application type) Portola Valley — Current $0–$100/person/season
Portola Valley — Baseline Cost $137/person/season

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Special Event Fees
Jurisdiction Fee
Burlingame $123/application + deposits and staff costs for additional services & rentals Los Altos Hills $150 - $500/application (based on event & applicant type) + actual cost for departmental services
Woodside $200 - $400/application + actual cost additional services & rentals Hillsborough $500 - $580/application (based on guest count) + actual costs Saratoga $337/application + $281 deposit
Portola Valley — Current Cost per person & deposit
Portola Valley — Baseline Cost $246 application fee + actual cost for rentals and staff

KEY FINDINGS
• Picnic Rentals: Of the comparable jurisdictions that charge for picnic rentals, none charge per person.

Burlingame and Saratoga both offer per-day/per-reservation rentals, and Hillsborough charges per hour.
• Facility Rentals: Comparable jurisdictions primarily structure facility rental fees on an hourly basis, often supplemented with deposits and additional staffing charges. If the daily rates were converted to hourly rates, Portola Valley is most comparable to the rates charged by Hillsborough and Saratoga. • Field Rental: Similar to the Town’s current process, most comparable jurisdictions charge field rates through agreements with youth sports organizations and other nonprofits. • Special Events: The application fee charged by Woodside is most comparable to the Town’s baseline cost. All comparable jurisdictions charge an application fee and a mix of deposits and actual costs for rentals, staffing, and additional services.

Overall, the comparative analysis indicates that Portola Valley’s Recreation fees are generally set below both the calculated baseline cost of service and the ranges observed across peer jurisdictions. This is most evident in picnic and field rentals, where current fees reflect a high level of subsidy relative to both cost recovery and market benchmarks. Facility rentals show a more mixed position, with some alignment at higher price points but under-recovery at lower tiers. Additionally, the Town’s current approach to special event fees differs from regional norms, as peer agencies consistently apply standardized application fees in addition to recovering direct service costs. Taken together, these findings highlight where the Town is prioritizing community access and affordability, while also identifying opportunities to better align fee structures with the full cost of service and prevailing market practices, should Council choose to adjust cost recovery levels.

RESOLUTION NO. -2026

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF

PORTOLA VALLEY APPROVING A REVISED FEE SCHEDULE

FOR ITS ADMINISTRATIVE, BUILDING, PUBLIC

WORKS/ENGINEERING

AND PLANNING DEPARTMENTS BASED ON THE COMPREHENSIVE FEE STUDY

REPORT PREPARED BY MATRIX CONSULTING GROUP
WHEREAS, Municipal Code Section 18.34.040 [Fees for applications-Collection] of Chapter 18.34[Administration] of Title 18[Zoning] authorizes theTown Council to establish, by resolution, the amounts of fees for applications andpermits undertheZoning Ordinance and may, from time to time modify the resolution; and WHEREAS, Resolution 2619-2014 was adopted on May 14, 2014 and provided for a revision on an annual basis to the master fee schedule based on the increase in the Consumer Price Index; and
WHEREAS, Resolution 2619-2014 provides the fees and charges set forth in Exhibit A shall be adjusted annually on July 1st of every year by the percentage increase or decrease in the Consumer Price Index - All Items Index (San Francisco-Oakland Hayward). The calculation will be based upon the index from February of the prior year to the index for February of the current year; and
WHEREAS, the proposed fees are not a tax pursuant to State of California Proposition 26; and
WHEREAS, on May 15, 2026, the Town Clerk published notices in a newspaper of local distribution concerning the Town Council's intention to hold a public hearing to consider adoption of a new fee schedule and all documentation supporting the proposed fee schedule was made available to the public, beginning on May 15, 2026.

WHEREAS, on May 19, 2026, the Finance Committee reviewed the report and provided feedback to staff.

WHEREAS, on May 27, 2026, the Town Council held a public hearing to review and approve the Comprehensive Fee Study Report and considered adoption of a resolution amending the Fee Schedule based upon the approval of the report.

NOW, THEREFORE, the Town Council of the Town of Portola Valley does RESOLVE as follows:

Section 1. The fees set forth in the attached fee schedule (Exhibit A) are hereby established pursuant to the Town of Portola Valley Municipal Code and shall become part of the Master Fee Schedule. These fees shall be paid to or collected by the Town for each of the applications, permits, extensions, renewals, services or other matters enumerated therein. No application shall be deemed filed or complete until all required fees have been paid in full to the Town.

Section 2. Upon the effective date of this resolution, Resolution 2951-2024 is hereby replaced, it being the intent of the Town Council that the fee schedule adopted by this resolution shall supersede all prior schedules pertaining to the same subject matter. 171
Section 3. Annual Adjustment. The CPI adjustment calculation this year was based upon the index from February of the prior year to the index for February of the current year, as the February Consumer Price Index was used for the CPI adjustment in April 2023.

Section 4. The fees adopted by this resolution shall become effective on July 1, 2026, except for Building and Planning fees which will go into effect on August 1, 2026.

PASSED AND ADOPTED this 27th day of May 2026.

AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Craig Taylor, Mayor
ATTEST:

Veronica Dao, Town Clerk
172
Master Fee Schedule
Fee Name Unit Current Deposit / Fee Total Cost Recommended Fee Fee Type or Regulation Building #REF!
Building Plan Check Fees
Plan Review % of Permit Fee Modified 55% 55% User Fee
Engineering Plan Review % of Permit Fee Modified 79% 79% User Fee Building Permit Fees
New Buildings, Additions, Tenant Improvements, Residential Remodels $1 to $2,000 Valuation Each Modified $513 $513 User Fee $2,000 to $25,000 Valuation
Project valued at $2,000 Each Modified $513 $513 User Fee For each additional $1,000 or fraction thereof Each Add'l $1,000 Modified $14.00 $14.00 User Fee $25,000 to $50,000 Valuation
Project valued at $25,000 Each Modified $835 $835 User Fee For each additional $1,000 or fraction thereof Each Add'l $1,000 Modified $12.88 $12.88 User Fee $50,000 to $100,000 Valuation
Project valued at $50,000 Each Modified $1,157 $1,157 User Fee For each additional $1,000 or fraction thereof Each Add'l $1,000 Modified $21.23 $21.23 User Fee $100,000 to $500,000 Valuation
Project valued at $100,000 Each Modified $2,219 $2,219 User Fee For each additional $1,000 or fraction thereof Each Add'l $1,000 Modified $6.43 $6.43 User Fee $500,000 to $1,000,000 Valuation
Project valued at $500,000 Each Modified $4,790 $4,790 User Fee For each additional $1,000 or fraction thereof Each Add'l $1,000 Modified $5.60 $5.60 User Fee $1,000,000 to $5,000,000 Valuation
Project valued at $1,000,000 Each Modified $7,588 $7,588 User Fee For each additional $1,000 or fraction thereof Each Add'l $1,000 Modified $1.30 $1.30 User Fee $5,000,000+ Valuation
Project valued at $5,000,000 Each Modified $12,800 $12,800 User Fee For each additional $1,000 or fraction thereof Each Add'l $1,000 Modified $0.65 $0.65 User Fee Mechanical, Electrical, and/or Plumbing Permit Fees
Mechanical % of Permit Fee Modified 15% 15% User Fee
Electrical % of Permit Fee Modified 15% 15% User Fee
Plumbing % of Permit Fee Modified 15% 15% User Fee
Building Flat Fees
Bathroom or Kitchen Remodel (non-structural) Each Modified $720 $720 User Fee Stucco / Siding Each Modified $440 $440 User Fee
Residential Re-Roof Each Modified $440 $440 User Fee
Doors, Windows, Skylights (Change Out Only)
5 or less Base Modified $440 $440 User Fee
Each Additional Window Each Modified $70 $70 User Fee
Swimming Pool, Spa
Swimming Pool Each Modified $1,571 $1,571 User Fee
Spa - In Ground Each Modified $881 $881 User Fee
Spa - Above Ground / Prefabricated Each Modified $708 $708 User Fee Signs
Pole or Freestanding Each Modified $800 $800 User Fee
Wall Mounted Each Modified $536 $536 User Fee
Monument Each Modified $800 $800 User Fee
173
Master Fee Schedule
Fee Name Unit Current Deposit / Fee Total Cost Recommended Fee Fee Type or Regulation Demolition Each Modified $536 $536 User Fee
Construction and Demolition Waste Management Review Fee Each Modified $440 $440 User Fee Stand Alone Trade (i.e., Water Heater, plumbing, mechanical, electrical, etc.) Base Base Modified $440 $440 User Fee
Each Additional Each Add'l Modified $440 $440 User Fee
Work Without a Permit Per Violation 2x Building Permit Fees 2x Building Permit Fees Penalty Permit Extension Each New $291 $291 User Fee
Permit Reactivation Each New $291 $291 User Fee
Technology Surcharge % of Permit Fee New 5% 5% Surcharge General Plan Maintenance Fee % of Permit Fee New 16% 16% Surcharge Temporary Occupancy Permit Each $1,766 $708 $708 User Fee Temporary Gas or Electrical Each $500 $513 $513 User Fee Generator Permit Each New $463 $463 User Fee
Solar / Photovoltaic
Single-Family Residential
Roof Mounted
15kW or Less Base New $450 $628 GOV § 66015 (a)
Each Additional kW Above 15kW Each addl. Kw New $15 $800 GOV § 66015 (a) Ground Mounted
15kW or Less Base New $450 $628 GOV § 66015 (a)
Each Additional kW Above 15kW Each addl. Kw New $15 $800 GOV § 66015 (a) Commercial / Multi-Family
Roof Mounted
50kW or Less Base New $1,000 $800 GOV § 66015 (b)
Per kW Between 50kW - 250kW Each addl. Kw New $7 $1,164 GOV § 66015 (b) Each Additional kW Above 250kW Each addl. Kw New $5 $1,608 GOV § 66015 (b) Ground Mounted
50kW or Less Base New $1,000 $800 GOV § 66015 (b)
Per kW Between 50kW - 250kW Each addl. Kw New $7 $1,164 GOV § 66015 (b) Each Additional kW Above 250kW Each addl. Kw New $5 $1,608 GOV § 66015 (b) Solar APP+ Each New $191 $191 User Fee
EV Charging Station
Residential Each New $536 $536 User Fee
Commercial Each New $1,072 $1,072 User Fee
Energy Storage System (ESS)
Residential Each New $536 $536 User Fee
Commercial Each New $1,072 $1,072 User Fee
Misc Fees
After Hours Inspection Per Hour New $231 $231 User Fee
Re-Inspection Fee Per Hour New $161 $161 User Fee
Alternate Means and Methods Per Hour New $195 $195 User Fee Excessive Plan Review (4th and subsequent) Per Hour New $184 $184 User Fee Revisions to Approved Plans Per Hour New $184 $184 User Fee Strong Motion Instrumentation & Seismic Hazard Mapping
Residential
Valuation under $3,850 Per $1,000 $0.50 $0.50 PRC § 2705 Valuation over $3,850 Per $1,000 $0.13 $0.13 PRC § 2705 174
Master Fee Schedule
Fee Name Unit Current Deposit / Fee Total Cost Recommended Fee Fee Type or Regulation Commercial
Valuation under $1,786 Per $1,000 $0.50 $0.50 PRC § 2705 Valuation over $1,786 Per $1,000 $0.28 $0.28 PRC § 2705 California Building Standards Commission
Every $25,000 or fraction thereof Per $25,000 $1 $1 SB 1473 Code Enforcement
Code Enforcement Inspection / Reinspection Per Inspection $290 PVMC 18.80.010 Abatement / Nuisance Cleanup Each Actual Cost PVMC 18.80.010 Noticing Fee
First Notice Each Penalty
Second Notice Each Penalty
Third and Subsequent Notice for Same Violation Each Penalty Certified Mailing Fee Each Actual Cost Penalty
Administrative Hearings PVMC 18.80.040
Citation Processing Each Actual Cost Penalty
Hearing Fee Each Actual Cost Penalty
Appeal Fee Each Actual Cost Penalty
Lien Processing Fee Each Actual Cost Penalty
Permit Related Enforcement
Work Without a Permit Per Violation 2x Building Permit Fees PVMC 15.04.020 Each Additional Violation (type of construction) Per Violation $500 Penalty Permit Investigation Fee Per Hour $120 Penalty
Tree Removal Violations Per Tree Penalty
Violation PVMC 18.80.030
First Violation Per Violation Per Day Penalty
Second Violation Per Violation Per Day Penalty
Third and Subsequent Violation Per Violation Per Day Penalty Planning
Pre-Application Meeting Initial Deposit $1,828 $500 $500 Deposit Pre-Application Review Initial Deposit New $2,000 $2,000 Deposit Architectural Review
New Residence Initial Deposit $7,594 $5,500 $5,500 Deposit Guest House / Addition Initial Deposit $5,944 $4,500 $4,500 Deposit Commercial Initial Deposit New $7,000 $7,000 Deposit
Multi-Family Initial Deposit New $7,500 $7,500 Deposit
Amendment Initial Deposit $3,979 $4,000 $4,000 Deposit
Site Development Permit
51-100 Cubic Yards Initial Deposit $4,499 $8,500 $8,500 Deposit 101-1,000 Cubic Yards Initial Deposit $7,196 $12,000 $12,000 Deposit Greater than 1,000 Cubic Yards Initial Deposit $9,052 $12,500 $12,500 Deposit Conditional Use Permit
Standard (New or Major Amendment) Initial Deposit $14,681 $6,000 $6,000 Deposit Planned Unit Development Initial Deposit $14,528 $6,500 $6,500 Deposit Amendment (Minor) Initial Deposit $8,848 $4,000 $4,000 Deposit Cannabis Initial Deposit $6,940 $2,000 $2,000 Deposit
Variance
Variance Initial Deposit $11,361 $2,000 $2,000 Deposit
Lot Line Adjustment
Lot Line Adjustment Initial Deposit $10,300 $11,500 $11,500 Deposit Geology Review
Map Modification Initial Deposit $4,923 $1,000 $1,000 Deposit Subdivision
Preliminary Map Initial Deposit $10,366 $2,000 $2,000 Deposit Tentative Map Initial Deposit $14,659 $11,500 $11,500 Deposit 175
Master Fee Schedule
Fee Name Unit Current Deposit / Fee Total Cost Recommended Fee Fee Type or Regulation Final Map Initial Deposit $5,404 $7,500 $7,500 Deposit
Map Time Extension Initial Deposit $1,534 $500 $500 Deposit Tentative Map Amendment Initial Deposit $4,567 $5,500 $5,500 Deposit Final Map Revision Initial Deposit $7,067 $3,500 $3,500 Deposit Environmental
Initial Assessment Initial Deposit $10,479 $1,500 $1,500 Deposit Mitigated / Negative Declaration Initial Deposit $26,423 $3,000 $3,000 Deposit CEQA Exemption Filing Initial Deposit New $1,000 $1,000 Deposit General Plan Amendment
General Plan Amendment Initial Deposit $14,737 $6,000 $6,000 Deposit Zoning Ordinance Amendment
Zoning Ordinance Amendment Initial Deposit $12,367 $3,000 $3,000 Deposit Fence Permit
Fence Permit Initial Deposit Modified $1,000 $1,000 Deposit Tree Removal Permit
Tree Removal Permit Initial Deposit $96 $1,000 $1,000 Deposit Miscellaneous
Residential Data Report (Zoning Verification Letter) Initial Deposit $151 $1,000 $1,000 Deposit Allowed Floor Area & Impervious Service Calculation Initial Deposit $151 $500 $500 Deposit Appeal Initial Deposit $14,858 $2,500 $2,500 Deposit
Additional Plan Review or Revision Per Hour Per Hour as Billed $193 $193 User Fee Zoning Permit / Fee Initial Deposit $1,631 $1,000 $1,000 Deposit Telecommunications Tower Initial Deposit New $8,500 $8,500 Deposit SB9 Initial Deposit New $3,000 $3,000 Deposit
SB9 Lot Split Initial Deposit New $7,000 $7,000 Deposit Development Agreement Initial Deposit New $5,000 $5,000 Deposit Annexation Initial Deposit New $11,500 Deposit
ASCC Review Initial Deposit New $2,500 $2,500 Deposit
Planning Inspection Per Inspection New $354 $354 User Fee Planning Reinspection Per Inspection New $177 $177 User Fee Anything not covered under the above permits Initial Deposit New $3,000 $3,000 Deposit Horse Permit
New Per Horse / Year $68 $70 $70 User Fee
Renewal
Residential Per Horse / Year $20 $31 $31 User Fee
Commercial Per Horse / Year $27 $47 $47 User Fee
Inspection Per Hour Per Hour as Billed $218 $218 User Fee Engineering
Encroachment into Public Right-of-Way
Application Fee Each Modified $382 $382 User Fee
Encroachment Inspection Deposit Initial Deposit Modified $500 $500 Deposit Debris Box Each New $194 $194 User Fee
Trenching Fee Per LF New $17 $17 User Fee
Fence, Wall, Irrigation, Driveway Cuts Per LF Modified $17 $17 User Fee Traffic Control Plan Review For Standard Lane Closure Per Sheet Deposit New $500 $500 Deposit Traffic Control Plan Review for Long Term (over three days) Closures Per Sheet Deposit New $1,000 $1,000 Deposit Misc. Engineering Fees
Flood Zone Letter Research Initial Deposit New $500 $500 Deposit Engineering Inspection Deposit Initial Deposit New $2,000 $2,000 Deposit Additional Engineering Plan Review Per Hour Modified $287 $287 User Fee Additional Engineering Inspection Per Hour Modified $230 $230 User Fee Work Without a Permit Each Up to 4x Permit Fee 2x Permit Fees Penalty 176
Master Fee Schedule
Fee Name Unit Current Deposit / Fee Total Cost Recommended Fee Fee Type or Regulation Effort Out of Standard Scope Initial Deposit New Varies, depending on scope Deposit Certificate of Compliance Initial Deposit $6,211 $6,500 $6,500 Deposit Administrative Fees
Banner / Sign Fee Each $35 $207 $207 User Fee
Business License
Application Processing Fee Each New $231 $231 User Fee
Special Event Business License Each New $52 $52 User Fee Fixed Place of Business within Portola Valley Each $134 $134 Employee Fee 30+ hours week Each / Per Year $27 $27
Employee Fee 15-30 hours week Each / Per Year $13 $13
Not Fixed Place of Business
General Contractor (3 or more subcontractors) Each $535 $535 General Contractor (less than 3 subcontractors) Each $134 $134 Subcontractor Each $134 $134
General License / Home Occupation Each $134 $134
State CASp (SB1186) Annual $4 $4 AB 1379
Copying Fees
Compact Disc (CD) / Flash Drive Copying Per Media $14 $10 $10 User Fee Paper Documents Per Copy $0.35 $0.35 GOV § 7922.530
Electric Vehicle Charging Station
Electric Vehicle Charging Fee Per kWh Modified $0.43 $0.43 User Fee Misc. Fees
Verification of Life Each New $51 $51 User Fee
Returned Check Each New $25 $25 CIV § 1719(a)
Subpoena Response Each New $15 $15 EVI § 1563(b)(6)
Recreation
Classes
Application Processing Fee (Instructor) Quarterly New $246 $197 User Fee Town Registration Fees % Fees Received 20% 20% User Fee Insurance (if supplied by the Town)
Non-sports Instruction Each Current carrier rate $92
Current carrier rate +
Processing Fee User Fee
Sports Instruction Each Current carrier rate $92
Current carrier rate +
Processing Fee User Fee
Facility Rental Fees / Deposits
Application Processing Each New $492 $492 Rental Fee
Date Change Fee Each 20% of rental charge $114 $114 Rental Fee Storage Fee Per Day New $144 $144 Rental Fee
Cleaning Fee Per Hour New $25 $25 Rental Fee
Community Hall
Resident Only Fee Per Day $2,777 $1,028 $2,777 Rental Fee Deposit Deposit $1,000 $1,000 Deposit
Key Deposit Deposit New $150 $150 Deposit
Community Hall - Memorial Service
Current / Past Resident Only Per Day $1,389 $1,028 $1,389 Rental Fee Deposit Deposit $500 $500 Deposit
Key Deposit Deposit New $140 $140 Deposit
177
Master Fee Schedule
Fee Name Unit Current Deposit / Fee Total Cost Recommended Fee Fee Type or Regulation Community Hall - Local Non-Profit within Town Limits
No Fundraiser Per Day $0 $1,028 $617 Rental Fee
No Fundraiser - Deposit Deposit $1,000 $1,000 Deposit
Fundraiser Per Day $1,022 $1,028 $1,022 Rental Fee
Fundraiser - Deposit Deposit $1,000 $1,000 Deposit
Key Deposit Deposit New $140 $140 Deposit
Community Hall - Public Agency
Public Agency Per Day New $1,028 $1,028 Rental Fee
Deposit Deposit New $350 $350 Deposit
Alder or Buckeye Room (minimum rental is 2 hours)
Resident Fee Per Hour $111 $288 $230 Rental Fee
Deposit Deposit $250 $250 Deposit
Kitchen (must rent with another room)
Rented with Community Hall Per Event $0 $83 $83 Rental Fee Rented with Alder or Buckeye Room - Resident Per Event $111 $83 $111 Rental Fee Deposit Deposit $100 $100 Deposit
Redwood Grove (Weddings Only)
Resident Fee Per Event $172 $18 $172 Rental Fee
Deposit Deposit $100 $100 Deposit
Staff Time / Additional Consultation for Rentals
First Hour First Hour $0 $246 $246 Rental Fee
Each additional hour (fully burdened staff hourly rate) Additional Hour $65 $246 $246 Rental Fee Sport User Fees
Date Change Fee Each 20% of rental permit cost $114 $114 User Fee Cleaning Fee Per Hour New $25 $25 User Fee
Town Fields
Town Sponsored; Schools (Town Council; Town Committees; PV School District; Woodside Priory) Per Person / Season $0 $137 $82 Rental Fee Local Organized Youth Leagues (Alpine/West Menlo Little League; AYSO; Kidz Love Soccer) Per Person / Season $44 $137 $82 Rental Fee Local Organized Youth Clubs (Alpine Strikers; CYSO) Per Person / Season $67 $137 $82 Rental Fee Local Organized Adult Leagues (PV Adult Soccer League; PV Softball) Per Person / Season $67 $137 $110 Rental Fee Local Organized Adult Clubs (PV Soccer Club) Per Person / Season $100 $137 $110 Rental Fee Deposit Deposit $500 $500 Deposit
Commercial Use
Clinics and Classes % of Gross Revenue 15% 0% 15%
Deposit Deposit $500 $500 Deposit
Picnic Spaces
Next to Little Peoples' Park - Town Center Per Person $3 $13 $13 Rental Fee Deposit Deposit $100 $100 Deposit
Ford Field Parking Lot
Residential
Parking Lot Per Day $108 $117 $108 Rental Fee
Deposit Deposit $100 $100 Deposit
Commercial
Parking Lot Per Day $108 $117 $117 Rental Fee
Parking Lot Per Month $3,240 $3,529 $3,529 Rental Fee
Deposit Deposit $100 $100 Deposit
Special Events
178
Master Fee Schedule
Fee Name Unit Current Deposit / Fee Total Cost Recommended Fee Fee Type or Regulation Special Event Permit Each New $246 $246 User Fee
Litter Deposit Per Day $130 $130 Deposit
Deposit Accounts
For services that require a deposit, the Town will establish a Cost Recovery Reimbursement Agreement in a form approved by the Town Attorney. The Town will withdraw expenses from the deposit at current Town hourly rates or at the contracted rates of outside consultants. If appropriate, consultant rates may incur a 15% charge to account for administrative services.

When the deposit balance reaches five percent (5%) of the original deposit amount, the Applicant shall replenish the account in an amount reasonably determined by the Town.

Supplemental Services
For services requested of Town Staff for which no fee is listed in the Master Fee Schedule, or for projects of a size and complexity not typically encountered by the Town, a Cost Recovery Reimbursement Agreement will be established. Services will be billed at current Town hourly rates or at the contracted rates of outside consultants. If appropriate, consultant rates may incur a 15% charge to account for administrative services.

Project valuation standards
Project valuation for purposes of calculating building permit fees shall be determined using the applicant’s submitted construction valuation. The Town shall validate submitted valuations using the International Code Council (ICC) Building Valuation Data tables, adjusted by an applicable regional cost modifier. Fee calculations shall be based on whichever valuation is greater, the applicant’s submitted value or the Town’s calculated value. The Town Manager, or their designee, is authorized to apply this methodology and make valuation determinations in accordance with these standards.

Calculating Hourly Rates for Staff
Hourly rates for Town Staff are calculated using the employee’s fully burdened cost, which includes salary and benefits, Town overhead, and productive hours. 179
______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Anthony McFarlane, Assistant Town Manager
DATE: May 27, 2026
RE: Town Committee Funding Requests
RECOMMENDATION:

Review and provide direction on Town Committee funding requests to be included in the FY 2026-27 Operating and Capital Budget

REPORT SUMMARY
Volunteerism is one of the founding principles of the Town of Portola Valley and continues to influence the Council’s main priorities of Community and Safety to this day. Dozens of dedicated residents have volunteered their time and efforts to the continued success of the Town. Council, Commission and Committee members efforts have helped maintain the unique characteristics that is Portola Valley. Committees have two responsibilities, advisory and support. In its advisory role, committees are responsible for advising the Town Council, Town Manager, or other committees, on matters that fall within its area of responsibility. In its supporting role, committees assist, and in some cases, augment staff in the performance of their duties.

The Town has 16 permanent advisory committees as follows, • Bicycle, Pedestrian & Traffic
Safety
• Cable and Utilities
Undergrounding
• Community Engagement
• Conservation
• Cultural Arts
• Emergency Preparedness
• Finance
• Geologic Safety
• Historic Resources
• Nature and Science
• Open Space Acquisition
• Parks & Recreation
• Public Works
• Sustainability
• Trails & Paths
• Wildfire Preparedness

TOWN OF PORTOLA VALLEY

STAFF REPORT

TOWN OF PORTOLA VALLEY
180

Town Committee Funding Requests May 27, 2026
Major community events make up most of the activities for the Cultural Arts, Parks & Recreation and Trails & Paths committees, such as the Town Picnic, Zotts to Tots, and the Horse Fair. Cultural Arts, Science & Nature, Conservation committees also help build community through smaller events, such as, the Spring in Portola Valley photo contest and exhibit, wildlife awareness, Broompull, and lecture series throughout the year.

Community and Safety are two of the Council’s top priorities for Fiscal Year 2026-27.

Residents have also identified the need to be prepared for natural disaster such as wildfires, earthquakes, flooding, or landslides. Priorities include prevention measures, evacuation planning, and reliable emergency response communication systems.

Community and Safety are the top two priorities the Committees have considered in developing these funding requests.

For fiscal year 2026-27, the committees are requesting funding in the following amounts, There will be additional operating costs as staff time will be needed to facilitate the community events. Staff will update the Council on these costs when the budget will be adopted in June.

It is important to note that even though these funding requests address two of the six Council main priorities, continued funding of these efforts will be challenging based on the Town’s financial situation.

Included in the attachments are budget worksheets submitted by the Committees with itemized details.

FISCAL IMPACT
The amount approved by the Council will be reflected in the FY 2026-27 proposed Operating and Capital Budget.

ATTACHMENTS

1. Town Committee Budget Worksheets
Committee Requested Staff Council
Name Amount Time Priority
Conservation $ 2,786 Y Community
Cultural Arts 4,350 Y Community
Emergency Preparedness 1,100 Y Safety
Geologic Safety 9,100 Y Safety
Parks & Recreation 25,000 Y Community
Science & Nature 1,600 N Community
Trails & Paths 10,000 Y Community
Wildfire Preparedness 3,000 Y Safety
Total $ 56,936
181
Adopted Proposed 22-23 23-24 24-25 25-26 25-26 26-27 Revenues 46079 Miscellaneous Revenues - $ - $ - $ - $ - $ - $ Subtotal - $ - $ - $ - $ - $ - $ Expenses 63203 Conservation 55 $ 7,000 $ 65 $ - $ 2,410 $ 2,786 $ Amount 400 150 500 500 200 380 300 33620 ------ Subtotal 55 $ 7,000 $ 65 $ - $ 2,410 $ 2,786 $ Actuals Town of Portola Valley FY 2026-27 Operating and Capital Budget 115 - Town Committees - Conservation Committee 101 - General Fund Itemize Budget Below Banners Broompull refreshments Fall Lecture Event Spring Lecture Event BYH and Town Center brochure reprints Native plant seeds for Springdown and Right-of-Way Table handouts, posters 2TB Google Drive reimbursement Conservation Committee Domain reimbursement 182
Adopted Proposed 22-23 23-24 24-25 25-26 25-26 26-27 Revenues 46079 Miscellaneous Revenues - $ - $ - $ - $ - $ - $ Subtotal - $ - $ - $ - $ - $ - $ Expenses 63204 Cultural Arts 44,850 $ 13,171 $ 13,954 $ - $ 3,000 $ 4,350 $ - 3,050 900 300 100 ----------- Subtotal 44,850 $ 13,171 $ 13,954 $ - $ 3,000 $ 4,350 $ Actuals Town of Portola Valley FY 2026-27 Operating and Capital Budget 115 - Town Committees - Cultural Arts 101 - General Fund Itemize Budget Below Spring in Portola Valley Event Speaker Series Youth Creative Fair Limerick Contest 183
184
185
186
187
188
Adopted Proposed 22-23 23-24 24-25 25-26 25-26 26-27 Revenues 46079 Miscellaneous Revenues - $ - $ - $ - $ - $ - $ Subtotal - $ - $ - $ - $ - $ - $ Expenses 63205 Emerg Preparedness 2,550 $ 2,041 $ 1,235 $ 1,049 $ 1,800 $ 1,100 $ Amount 600 300 200 ------------ Subtotal 2,550 $ 2,041 $ 1,235 $ 1,049 $ 1,800 $ 1,100 $ Town of Portola Valley FY 2026-27 Operating and Capital Budget 115 - Town Committees - Emergency Preparedness Committee 101 - General Fund Itemize Budget Below Outreach - Publications, Printing, Distribution, Promotion Outreach - Monthly Community Events series, Large Community Hall Event, Insurance Dropbox - Multiple users Actuals 189
Adopted Proposed 22-23 23-24 24-25 25-26 25-26 25-26 Revenues 46079 Miscellaneous Revenues - $ - $ - $ - $ - $ - $ Subtotal - $ - $ - $ - $ - $ - $ Expenses 63214 Geologic Safety 55 $ 7,000 $ - $ 980 $ 1,950 $ 9,100 $ Amount300 8,500 200 100 ------------ Subtotal 55 $ 7,000 $ - $ 980 $ 1,950 $ 9,100 $ Actuals Town of Portola Valley FY 2026-27 Operating and Capital Budget 115 - Town Committees - Geologic Safety Committee 101 - General Fund Itemize Budget Below Public Communications External Coordination - 10 year update to ground movement potential maps Evacuation Maps Report - Resilience in Japan 190
191
192
Adopted Proposed 22-23 23-24 24-25 25-26 25-26 26-27 Revenues 46079 Miscellaneous Revenues - $ - $ - $ - $ - $ - $ Subtotal - $ - $ - $ - $ - $ - $ Expenses 62324 Nature & Science 1,097 $ - $ - $ 72 $ 1,300 $ 1,600 $ Amount 500 900 200 ------------ Subtotal 1,097 $ - $ - $ 72 $ 1,300 $ 1,600 $ Town of Portola Valley FY 2026-27 Operating and Capital Budget 115 - Town Committees - Nature & Science Committee 101 - General Fund Itemize Budget Below Star Party Wildlife Awareness Event Bird Walk Actuals 193
Revised Proposed 22-23 23-24 24-25 25-26 25-26 26-27 Revenues 46079 Miscellaneous Revenues - $ - $ - $ - $ - $ - $ Subtotal - $ - $ - $ - $ - $ - $ Expenses 63211 Trails & Paths 6,757 $ 12,597 $ 9,457 $ 8,566 $ 10,000 $ 10,000 $ Amount 10,000 -------------- Subtotal 6,757 $ 12,597 $ 9,457 $ 8,566 $ 10,000 $ 10,000 $ Actuals Town of Portola Valley FY 2026-27 Operating and Capital Budget 115 - Town Committees - Trails & Paths 101 - General Fund Itemize Budget Below Horse Fair 194
195
______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Anthony McFarlane, Assistant Town Manager
DATE: May 27, 2026
RE: Not-for-Profit Agency Funding Requests
RECOMMENDATION:

Review and provide direction on Not-for-Profit Agency funding requests to be included in the FY 2026-27 Operating and Capital Budget

REPORT SUMMARY
Annually, the Town receives funding requests from regional not-for-profit agencies. The Town Council reviews these funding requests and determines the allocation amount that each agency will receive.

Emergency Preparedness in Communities (EPiC)
Operates the WPV-Ready and WPV-CERT programs. WPV-Ready provides emergency preparedness information, education, and resources. WPV-CERT focuses on building the strongest possible volunteer emergency response team. EPiC’s goal is to promote emergency preparedness knowledge and skill at the citizen and neighborhood levels. EPiC receives funding from the WFPD, the Town of Woodside and the Town of Portola Valley.

Human Investment Project Housing (HIP)
Programs include Home Sharing, Self Sufficiency, and Housing Readiness. Home Sharing matches people seeking an affordable place to live with those who have existing space. The Self-Sufficiency program offers 1–5-year rental scholarships and access to housing and educational support to low-income parents and transitional- age foster youth. The Housing Readiness program empowers older adults and very lowincome individuals to navigate the challenging local housing landscape and provides services to prevent the most vulnerable of the community from experiencing homelessness.

TOWN OF PORTOLA VALLEY

STAFF REPORT

TOWN OF PORTOLA VALLEY
196

Not-for-Profit Agency Funding Requests May 27, 2026
Housing Endowment and Regional Trust (HEART)
Helps non-profit organizations acquire and preserve existing affordable housing. In FY 23-24, HEART launched a new program allowing HEART to use its bonding capacity to purchase existing buildings and convert them to affordable housing.

Joint Venture Silicon Valley (JVSV)
Provides analysis and operates action programs related to climate initiatives, surplus food diversion, transportation, broadband and professional economic development services. Through the Silicon Valley Index, JVSV monitors the region’s health and vitality.

Meals on Wheels – Peninsula Volunteers, Inc (PVI)
Operates the Meals on Wheels program for San Mateo County. This program provides seniors and adults with disabilities nutritious meals, daily human contact, and safety checks. According to PVI, over 16,000 seniors face food insecurity in San Mateo County. PVI delivers more than 180,000 meals to 1,200 San Mateo County residents.

Meals on Wheels receives partial funding from San Mateo County Aging and Adult Services.

Peninsula Conflict Resolution Center (PCRC)
Strives to create spaces where all perspectives are valued, and individuals feel respected and included. They offer conflict resolution services through mediation, conflict coaching, training, and facilitation throughout San Mateo County.

Sustainable San Mateo County (SSMC)
Promotes positive community action on economic, environmental, and social equity issues. Core programs include the Indicators Report and the Annual Sustainability and Green Building Awards. New efforts include a City Sustainability Newsletter. There is also a Sustainability Ideas Bank available for local agencies to use to augment their own sustainability initiatives.

Sustainable Silicon Valley (SSV)
Assists community businesses and local governments in reducing energy and water consumption. Through data measurement, goal setting with extensive outreach, SSV helps local governments become more energy and water efficient and build better environmental health, economic vitality, and community resiliency.

Community Overcoming Relationship Abuse (CORA)
Provides emergency response services to victims of abuse as well as legal services, housing, and mental health support.

PV Palooza Foundation
Organizes the PV Palooza Summer Music Festival and Summer Concert Series.

Formerly organized by the Cultural Arts Committee but is now a private foundation.

Town support in the past has included use of facilities and staff time. 197

Not-for-Profit Agency Funding Requests May 27, 2026
Historically, the Town Council has allocated approximately $19,500 on average to notfor-profit agencies since FY 2020-21. For Fiscal Year 2025-26, the Town Council allocated $21,962.

Most of the services performed by the not-for-profit agencies tie in with Council priorities of Community, Safety and Sustainability. Total amount of requests received is $56,061.

As with the Town Committees, continued funding will be challenging. The Council could consider limiting funding to the not-for-profits that perform services directly within the Town and not regionally. Limiting funding to agencies that directly serve the Town will total $33,561 with a total of $16,361 coming out of the Inclusionary In-lieu fund. The remaining balance of $17,200 would come out of the General Fund.

FISCAL IMPACT
The total amount approved by the Council will be reflected in the FY 2026-27 proposed Operating and Capital Budget.

ATTACHMENTS

1. Funding Schedule
Organization Requested Allocated
Emergency Preparedness in Communities (EPiC) $ 10,000 $ 7,000 Human Investment Project Housing (HIP) 3,000 2,100
Housing Endowment and Regional Trust (HEART) 1,432 1,002 Housing Leadership Council (HLC) - -
Joint Venture Silicon Valley (JVSV) 1,100 770
Meals on Wheels - Peninsula Volunteers, Inc (PVI) 5,000 3,500 Peninsula Conflict Resolution Center (PCRC) - -
PV Palooza Foundation 4,000 4,000
Sustainable San Mateo County (SSMC) 1,735 1,215
Sustainable Silicon Valley (SSV) 1,000 700
Community Overcoming Relationship Abuse (CORA) 1,675 1,675 Ombudsman Services of San Mateo County (OSSMC) - -
Total $ 28,942 $ 21,962
2025-26
198
Organization Requested Recommended Fund Priority
23-24 24-25 25-26 26-27 100%
Citizens Emergency Response Preparedness Program (CERPP) $ 5,000 $ - $ - $ - $ - Emergency Preparedness in Communities (EPiC) - 15,000 7,000 15,000 7,500 General Safety Human Investment Project Housing (HIP) 2,081 - 2,100 15,000 15,000 Inclusionary Community Housing Endowment and Regional Trust (HEART) 944 - 1,361 1,361 1,361 Inclusionary Community Housing Leadership Council (HLC) - - - - -
Joint Venture Silicon Valley (JVSV) 694 1,100 770 5,000 - Sustainability Meals on Wheels - Peninsula Volunteers, Inc (PVI) 3,469 - - - - Peninsula Conflict Resolution Center (PCRC) 1,915 - - 5,000 - General Safety PV Palooza Foundation 3,000 4,000 - 4,000 4,000 In-kind Community PV Palooza Foundation - Summer Concert Series - - 4,000 4,000 4,000 General Community Sustainable San Mateo County (SSMC) 1,735 - 1,190 5,000 - General Sustainability Sustainable Silicon Valley (SSV) 694 - - - -
Community Overcoming Relationship Abuse (CORA) 1,610 1,642 1,675 1,700 1,700 General Safety Ombudsman Services of San Mateo County (OSSMC) - - - - - Subtotal $ 21,141 $ 21,742 $ 18,096 $ 56,061 $ 33,561
Actuals
199

TOWN OF PORTOLA VALLEY

STAFF REPORT
____________________________________________________________________________________ TO:

FROM:

DATE:

RE:

Mayor and Members of the Town Council
Anthony McFarlane, Assistant Town Manager
Darcy Smith, Town Manager
May 27, 2026
Adopt a Resolution Amending the Salary Schedule to Reflect a Costof-Living Adjustment of 2.5% and the Addition of Finance Manager, Accountant I, and Senior Development Review Technician/Building Inspector Positions

RECOMMENDATION
Staff recommends that the Town Council adopt a Resolution amending the current Salary Schedule to reflect a Cost-of-Living Adjustment of 2.5% plus the addition of three positions effective July 1, 2026.

BACKGROUND
Every fiscal year the Town Council annually adopts the Salary Schedule along with the upcoming fiscal year budget. The Salary Schedule is the governing document that regulates both pay rates and job classifications. The Salary Schedule is adopted via Resolution, which additionally is utilized by the California Public Employees’ Retirement System (CalPERS) to audit any retiring employees from the Town. The Town Council must adopt any changes that are made to this document to ensure it complies with state regulations. However, not every position listed on the Salary Schedule is to be filled.

It has been the policy of the Town to maintain a competitive salary rate structure for all positions to enhance recruitment and retention practices. Town staff receive a Cost-ofLiving Adjustment (COLA) annually based on the February to February (12-month) annual CPI index for the San Francisco-Oakland-Hayward area. The 12-month CPI for February 2026 was 2.5%.
2022 2023 2024 2025 2026
Month 12-Month 12-Month 12-Month 12-Month 12-Month
February 5.2 5.3 2.4 2.7 2.5
Source: www.bls.gov
200
Salary Schedule Amendment May 27, 2026

To address organizational efficiency and effectiveness and career track development, the proposed salary schedule for Fiscal Year 2026-27 includes three additional positions. The Senior Development Technician/Building Inspector, Finance Manager and Accountant I.

The Senior Development Technician/Building Inspector will allow the Planning and Building Department to provide enhanced customer service at the front counter with more knowledgeable staff and in-house building inspection services that will also reduce the reliance on the use of consultants for these services.

With the promotion of the Finance Director to Assistant Town Manager, the vacancy will be filled with a Finance Manager to handle the day-to-day operations of the Finance Department. The Assistant Town Manager will still have general oversight of budget development and financial statement preparation.

The Accountant I position will fill the missing step in the career ladder track in the Finance Department. Currently, the positions are one entry level position and one senior position.

As the finance technician gains more knowledge, experience and grows in the role, the current salary schedule offers no room for progressive advancement to a senior role in the department. This could hinder staff retention as the entry level position would have to look at other local agencies to advance their career.

Staff is still reviewing the Town’s organizational structure and may have more adjustments to make before the first meeting in June where a more detailed organizational chart will be presented.

FISCAL IMPACT
A 2.5% COLA will increase salaries approximately $52K. However, salary savings of approximately $81K will be realized by replacing the vacant Finance Director salary range with the proposed Finance Manager salary range and will fund the increase of approximately $29K in salaries for the Accountant I and Senior Development Review Technician/Building Inspector positions.

ATTACHMENTS

1. Resolution

2. Salary Schedule

3. Job Descriptions
201
RESOLUTION NO. XXXX-2026

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PORTOLA VALLEY ADOPTING THE SALARY SCHEDULE FOR FISCAL YEAR 2026-27
WHEREAS, the Town Manager proposes Salary Schedule updates annually to the Town Council; and
WHEREAS, at its April 8th meeting, the Town Council directed staff to include an annual Cost of Living Adjustment based on past practice and consistent with practices in other municipalities; and
WHEREAS, the Town Council directed staff to include in the salary ranges a

2.5% CPI/COLA increase effective the pay period ending July 15, 2026 and reflected in the FY 2026/27 budget; and
WHEREAS, to ensure right sizing and organizational flexibility for Planning & Building series staff, the Salary Schedule is amended to include the title of Senior Development Technician / Building Inspector; and
WHEREAS, to ensure right-sizing and career ladders for Finance series staff, the Salary Schedule is amended to include the titles of Finance Manager and Accountant I.

NOW THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Portola Valley that public interest and convenience require an update to the salary schedule as outlined above.

PASSED AND ADOPTED this 27th day of May 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

By: __________________________
Craig Taylor, Mayor
ATTEST:
_________________________
Veronica Dao, Town Clerk
202
Bottom Top Bottom Top
Town Manager
Assistant Town Manager $195,736 $252,282 salary
Town Clerk $123,122 $160,986
Administrative Services Manager $130,491 $171,813 salary Senior Administrative Analyst $123,122 $160,986 salary
Administrative Analyst $106,539 $132,646 $51.22 $63.77
Administrative Assistant $79,377 $96,210 $38.16 $46.25
Finance Director $184,862 $241,408
Finance Manager $130,491 $179,181 salary
Senior Accountant $118,015 $137,248
Accountant I $106,540 $132,646 $51.22 $63.77
Finance Technician $59,543 $104,062 $28.63 $50.03
Planning and Building Director $184,862 $241,408
Deputy Building Official $124,458 $184,641 $59.84 $88.77 Senior Planner $125,753 $177,194 $60.46 $85.19
Associate Planner $106,026 $144,760 $50.97 $69.60
Assistant Planner $97,346 $131,392 $46.80 $63.17
Senior Development Review Technician /
Building Inspector
$101,686 $139,628 $48.89 $67.13
Senior Development Review Technician $90,345 $114,437 43.44 55.02 Development Review Technician I/II $58,504 $102,615 $28.13 $49.33 Town Engineer $190,035 $215,373
Engineering Technician $90,345 $114,437 43.43 55.02
Maintenance Worker III $99,124 $139,007 $47.66 $66.83
Maintenance Worker II $90,682 $113,513 $43.60 $54.57
Maintenance Worker I $71,901 $102,064 $34.57 $49.07
Consultant/Intern/Temporary Help - - $25.00 $175.00
Notes:

1. All hourly positions are based on a 40.0 hour
work week (2,080 hours annually) unless otherwise
noted.

2. Not all classifications detailed above are
authorized to be filled, please refer to the Town's
budget for position authorizations.

3. The Town of Portola Valley defaults to California
State Minimum Wage rates.
salary
Public Works / Facilities Maintenance
salary
Planning & Building
salary
Finance
salary
Set by Contract
$250,000 salary
salary
Town of Portola Valley
Salary Schedule
FY 2026-27 Salary Schedule:

Administration
Annual Range Hourly Range
203

TOWN OF PORTOLA VALLEY
Accountant I Job Specification
Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class. Specifications are not intended to reflect all duties performed within the job.

SUMMARY DESCRIPTION
Under general supervision to direction, performs professional accounting work, including auditing, analyzing, and verifying fiscal records and reports, preparing financial and statistical reports, providing information to Town staff regarding accounting practices and procedures, fund balances, and reconciling general ledger accounts; assists in preparing the Town’s annual budget, prepares year-end audit reports and schedules, and performs related work as required.

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from the Finance Manager. Exercises no direct supervision over staff.

DISTINGUISHING CHARACTERISTICS
This is the entry-level class in the professional finance series. Initially, under general supervision, incumbents perform routine accounting, record keeping, and reporting duties. As experience is gained, assignments become more varied and are performed with greater independence.

Positions at this level usually perform most of the duties required of the position at the journeylevel but are not expected to function at the same skill level and usually exercise less independent discretion and judgment in matter related to work procedures and methods. Work is usually supervised while in progress and fits an established structure or pattern. Exceptions or changes in procedures are explained in detail as they arise.

REPRESENTATIVE DUTIES
The following duties are typical for this classification. Incumbents may not perform all the listed duties and/or may be required to perform additional or different duties from those set forth below to address business needs and changing business practices. • Prepares journal entries and maintains the general ledger and subsidiary ledgers of various funds, identifies, and locates accounting data by researching accounts related source documents and prepares summaries of account transactions, balances and supporting documents.
• Performs year-end review of accounts, prepares adjusting and closing entries, and prepares year-end financial statements.
• Analyzes and reconciles revenue and expenditure accounts, processes transfers of expenditures and appropriations, prepares, analyzes, and verifies statements of financial condition, including schedules of balance sheets, investments, cash balances, fund balances, revenue, expenditure, and statistical reports, makes estimates of and analyzes actual departmental expenditures in developing cost data for budgeting. • Maintains and monitors the Town’s grant funds and ensures compliance with rules and regulations governing the use of the grant.
204
Town of Portola Valley
Accountant I Job Specification

• Participates in the investment of Town funds, may maintain cash flow records of investments. • Assists outside auditors by locating records and explaining Town policies and procedures. • Act as administrator for permit tracking software and train staff and consultants on its use. • Provides information regarding accounting procedures, budgeting, and related issues to Town staff.
• Assists in preparation of periodic and special financial reports for other government agencies. • Complies with all Town safety requirements and practices. • Performs other related duties as assigned.

QUALIFICATIONS
The following generally describes the knowledge and ability required to enter the job and/or be learned within a short period of time to successfully perform the assigned duties.

Knowledge of:
• Modern principles, practices, and methods of public and governmental accounting and financing, including program budgeting and auditing and their application to municipal operations.
• General principles and practices of data processing and its applicability to accounting and municipal operations.
• Applicable Federal, State, and local laws, regulatory codes, ordinances, and procedures relevant to municipal financial operations.
• Principles and practices of business organization and public administration. • Record keeping principles and procedures.
• Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and Town staff.
• The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
• Modern equipment and communication tools used for business functions and program, project, and task coordination.
• Computers, and software programs (e.g. Microsoft software packages) to conduct, compile, and/or generate documents.

Ability to:
• Analyze financial data and draw sound conclusions.
• Prepare clear, complete, and concise financial statements and reports. • Interpret, apply, explain, and ensure compliance with Federal, State, and local policies, procedures, laws, and regulations.
• Make accurate arithmetic, financial, and statistical computations. • Enter and retrieve data from a computer with speed and accuracy. 205
Town of Portola Valley
Accountant I Job Specification

• Establish and maintain a variety of filing, record-keeping, and tracking systems. • Understand and carry out a variety of complex instructions in a responsible and independent manner.
• Understand, interpret, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
• Effectively represent the department and the Town in meetings with individuals, governmental agencies, community groups, various business, professional, and regulatory organizations. • Learn and understand the organization and operation of the Town and of outside agencies as necessary to assume assigned responsibilities.
• Independently organize work, set priorities, meet critical deadlines, and follow-up assignments.
• Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
• Communicate clearly and concisely, both orally, and in writing, using appropriate English grammar and syntax.
• Use tact, initiative, prudence, and independent judgment within general policy, procedural and legal guidelines.
• Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience Guidelines - Any combination of education and experience that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:
• Equivalent to a bachelor’s degree from an accredited college or university in accounting, finance, business, or public administration.
• Two (2) years of responsible professional accounting experience.

Licenses or Certificates:
• None.

FLSA STATUS: This classification is non-exempt from the Fair Labor Standards Act (FLSA).

PHYSICAL DEMANDS AND WORKING ENVIRONMENT
The conditions herein are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions.

Environment: Standard office setting. CONTINUOUS work indoors in close proximity to coworkers and members of the public; Work schedule is either a standard 40-hour work week during core business hours (8:00 am to 5:00 pm) or a 9/80 schedule. For the 9/80 schedule employees are required to work nine hours (for example from 7:30 a.m. to 5:30 p.m.) for eight work days, eight hours on a ninth work day, with the tenth day off (alternate Fridays off). Work from home and/or flexible schedule may be allowed at the Discretion of the Assistant Town Manager in 206
Town of Portola Valley
Accountant I Job Specification

compliance with the Town’s adopted policy. Work environment is both formal and informal, team oriented, having variable tasks, pace, and pressure. Work is performed indoors in office and in meeting rooms.

Physical: Primary functions require sufficient physical ability to work in an office setting and operate office equipment. CONTINUOUS sitting and upward and downward flexion of neck; fine finger dexterity; light to moderate finger pressure to manipulate keyboard, equipment controls, and office equipment; pinch grasp to manipulate writing utensils. FREQUENT side-to-side turning of neck, walking, standing, bending, stooping, pushing/pulling, and twisting at waist; moderate wrist torque to twist equipment knobs and dials; lifting objects weighing up to 20 lbs.

OCCASIONAL squatting, kneeling, and reaching above and at shoulder height; moderate grasp to manipulate reference books and manuals.

Vision: See in the normal visual range with or without correction; vision sufficient to read computer screens and printed documents and to operate equipment.

Hearing: Hear in the normal audio range with or without correction.

EMERGENCY DISASTER SERVICE
All Town employees are designated Disaster Service Workers through state and local law (California Government Code Section 3100-3109). Employment with the Town requires the affirmation of a loyalty oath to this effect. Employees are required to complete all Disaster Service Worker-related training as assigned, and to return to work as ordered in the event of an emergency.
207

TOWN OF PORTOLA VALLEY
Finance Manager Job Specification
Class specifications are intended to present a descriptive list of the range of duties performed by employees in the class. Specifications are not intended to reflect all duties performed within the job.

SUMMARY DESCRIPTION
Under general direction, performs complex professional accounting and financial management duties and oversees the day-to-day operations of the Town’s Finance department, including supervision of the Finance staff, assists the Assistant Town Manager in the preparation of financial statements, annual budget, analysis, reports, presentations, and contributes to policy and procedural development and implementation. Performs related duties as assigned.

SUPERVISION RECEIVED AND EXERCISED
Receives general direction from the Assistant Town Manager. Exercises direct and general supervision over professional, technical, and administrative support staff.

DISTINGUISHING CHARACTERISTICS
This is a management classification responsible for planning, organizing, reviewing, and evaluating the programs, services, and activities of the Finance Department including preparation of financial statements and analysis and maintaining the integrity of the Town's financial systems. Responsibilities include developing and implementing policies and procedures for assigned programs, maintaining the general ledger, budget administration and reporting, and program evaluation. Incumbents serve as a professional-level resource for organizational, managerial, and operational analyses and studies.

The successful candidate will excel at recognizing process improvement opportunities, possess outstanding oral and written communication skills, exhibit a balance of technical and managerial acumen, and have a breadth and depth of experience suited to a small Town, with a results-oriented, collaborative management style.

Performance of the work requires the use of considerable independence, initiative, and discretion within established guidelines. This class is distinguished from that of Assistant Town Manager in that the latter has overall responsibility for all functions of the Finance, Human Resources, Information Technology and Risk Management programs of Administrative Services and for developing, implementing, and interpreting public policy.

REPRESENTATIVE DUTIES
The following duties are typical for this classification. Incumbents may not perform all the listed duties and/or may be required to perform additional or different duties from those set forth below to address business needs and changing business practices. • Plans, manages, and oversees the daily functions, operations, and activities of the Finance Department, including general accounting, payroll administration, accounts payable, accounts receivable, cash management, purchasing, business licensing, financial reporting, auditing, budgeting, fixed asset inventory, and treasury functions. • Participates in the development and implementation of goals, objectives, policies, and 208
Town of Portola Valley
Finance Manager Job Specification

priorities for the Finance Department; recommends appropriate service and staffing levels, recommends, and administers policies and procedures.
• Participates in the development, administration, and oversight of division budget; determines funding needed for staffing, equipment, materials, and supplies; ensures compliance with budgeted funding.
• Develops and standardizes procedures and methods to improve and continuously monitor the efficiency and effectiveness of assigned programs, service delivery methods, and procedures; assesses and monitors workload, administrative, and support systems, and internal reporting relationships; identifies opportunities and makes recommendations for improvement. • Participates in the selection of, trains, motivates, and evaluates assigned personnel; works with employees to correct deficiencies; recommends and implements discipline and termination procedures.
• Performs a variety of complex accounting and budget related duties and analysis; and ensures proper program administration and resolution.
• Monitors, interprets, and implements GAAP, GASB, and other accounting standards, policies and procedures using discretion and judgment.
• Develops systems and maintains records that provide for the proper evaluation, control, and documentation of assigned activities; prepares and directs the preparation of a variety of written correspondence, reports, procedures, directives, and other materials. • Coordinates the Town's annual financial and compliance audits, including preparation and analysis of complex financial reports and the Annual Comprehensive Financial Report (ACFR).
• Assists with preparation and implementation of annual Operating and Capital Improvement Plan budgets.
• Oversees and maintains the integrity of the Town’s budget and accounting financial systems and advises Town staff on budget and accounting policies and technical procedures. • Answers inquiries and performs calculations and analysis on confidential employment matters.
• Answers inquiries and resolves complaints from employees and the public, using discretion and judgment.
• Oversees, coordinates, and prepares accounting, budgeting, finance, audit, and related documents, using discretion and judgment.
• Assists in the analysis, preparation, and development of the Town's Fee Schedule. • Attends management meetings, Council meetings, and Town functions. • Perform related duties as assigned.

QUALIFICATIONS
The following generally describes the knowledge and ability required to enter the job and/or be learned within a short period of time to successfully perform the assigned duties.

Knowledge of:
• Principles and practices of employee supervision, including work planning, assignment review and evaluation, discipline, and the training of staff in work procedures. • Advanced Excel formulas and functions, and in-depth knowledge of financial systems. • Organization and management practices as applied to the development, analysis, and evaluation of programs, policies, and operational needs of the assigned area of responsibility. • Principles and practices of governmental budgeting, accounting, auditing, financial reporting, and municipal financial administration, and Generally Accepted Accounting 209
Town of Portola Valley
Finance Manager Job Specification

Principles (GAAP).
• Complex financial reporting and analysis, including Annual Comprehensive Financial Report (ACFR) preparation and reporting.
• Modem security practices for data and information systems and technologies, including financial systems, spreadsheets, word processing, and database applications. • Techniques for providing a high level of customer service by effectively dealing with the public, vendors, contractors, and Town staff.
• The structure and content of the English language, including the meaning and spelling of words, rules of composition, and grammar.
• Modern equipment and communication tools used for business functions and program, project, and task coordination.
• Computers and software programs (e.g., Microsoft software packages) to conduct, compile, and/or generate documentation.

Ability to:
• Provide administrative and professional leadership and direction for the division and the Town.
• Select and supervise staff, provide training and development opportunities, ensure work is performed effectively, and evaluate performance in an objective and positive manner. • Prepare complex project or account reconciliations, analyses, financial statements, and reports, requiring use of discretion and judgment.
• Analyze and interpret financial, technical, and general reports. • Understand, interpret, and apply all pertinent laws, codes, regulations, policies and procedures, and standards relevant to work performed.
• Effectively represent the department and the Town in meetings with individuals; governmental agencies; community groups; various businesses, and regulatory organizations.
• Learn and develop an understanding of the organization, Town operations, and outside agencies as necessary to assume assigned responsibilities. • Independently organize work, set priorities, meet critical deadlines, and follow-up on assignments.
• Effectively use computer systems, software applications, and modern business equipment to perform a variety of work tasks.
• Communicate clearly and concisely, both orally and in writing, using appropriate English grammar and syntax.
• Use tact, initiative, prudence, and independent judgment within general policy, procedural, and legal guidelines.
• Establish, maintain, and foster positive and effective working relationships with those contacted in the course of work.

Education and Experience Guidelines - Any combination of education and experience that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:
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Town of Portola Valley
Finance Manager Job Specification