Portola Valley City Council
June 24, 2026

Master Fee Schedule June 24, 2026

2. Facility Rentals
a. $492 each - Application Processing Fee for Rentals
b. $114 each - Date Change Fee
c. $144 each - Storage Fee
d. $25 per hour - Cleaning Fee
e. $150 each – Key Deposit
f. $1,028 each – Rental Fee for Public Agencies
g. $350 each – Deposit for Public Agencies

3. Sports User Groups
a. $114 each – Date Change Fee
b. $25 per hour – Cleaning Fee
Town Courts has been separated from Town Fields and will be presented discretely in the proposed Master Fee Schedule. See Attachment 2.

Based on Council feedback and review with the Parks and Recreation Committee, staff is recommending adopting fees at the rates Matrix is recommending with the following exceptions. See Attachment 3.

Category Fee Current Matrix Staff Variance
Classes Application Processing New $197 $45 -$152
Facilities Community Hall – Non-Profit No
Fundraiser
$0 $617 $0 -$617
Sport
Groups
Town Sponsored $0 $82 $0 -$82
Local Organized Youth Leagues $44 $82 $48 -$34
Local Organized Youth Clubs $67 $82 $74 -$8
Town Courts Local Organized Adult Clubs $100 $110 $100 -$10

ENVIRONMENTAL IMPACT
The recommended Town Council action to adopt a resolution amending the Master Fee Schedule is not considered a “project" under the California Environmental Quality Act (CEQA) Guidelines and is therefore exempt from CEQA requirements. As provided by CEQA Guidelines Section 15378(b)(5), a “project” does not include “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” Adoption of the resolution is therefore exempt from CEQA and no further environmental analysis is required.

FISCAL IMPACT
Revenue from parks and field rentals and Community Hall rentals is anticipated to increase by $34,000 and has been included in the FY 2026-27 Operating and Capital Budget.

ATTACHMENTS

1. Resolution
206

Master Fee Schedule June 24, 2026

2. Amended Master Fee Schedule

3. Master Fee Schedule Worksheet
207
RESOLUTION NO. -2026

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF

PORTOLA VALLEY APPROVING A REVISED FEE SCHEDULE

FOR ITS PARKS AND FIELDS AND COMMUNITY HALL RENTALS

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]ofTitle18[Zoning] authorizes theTownCouncilto 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 1
st 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 adopted Resolution 2992-2026 approving amended fees related to administration, building, planning, and engineering. The Council continued the public hearing to June 24, 2026, and directed staff to review the fee study report with the Parks and Recreation Committee prior to consideration of parks and fields and community hall rentals.

WHEREAS, on June 18, 2026, Town staff met with representatives of the Parks and Recreation Committee to review the report and recommended fee structure. The Parks and Recreation Committee requested more time to study and make a formal recommendation for the next fiscal year.

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 208
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. The fees adopted by this resolution shall become effective on July 1, 2026.

PASSED AND ADOPTED this 24th day of June 2026.

By: ______________________________
Craig Taylor, Mayor
ATTEST:
_______________________
Veronica Dao, Town Clerk
209
Administrative Fees & Rentals
Activity Current Fee Proposed
Amendment
3 Banner/Sign Fee $207

Business License
a) Application Processing Fee $45 new applications
only
b) Fixed place of business within Portola
Valley $134 each
i) Employee Fee 30+ hours week $27 each/per year
ii) Employee Fee 15-30 hours week $13 each/per year

c) Not Fixed place of business
i) General Contractor (3 or more
subcontractors) $535 each
ii) General Contractor (less than 3
subcontractors) $134 each
iii) Subcontractor $134 each
iv) General License/Home Occupation $134 each
d) Special Event $52 each
Classes
a) Application Processing Fee NEW $45 New instructors
only
b) Town registration fees 20% of fees received
c) Insurance (Town-purchased)
i) Non-Sports Instruction Current
carrier rate
plus $45
processing fee if
not a new
instructor
ii) Sports Instruction Current
carrier rate
plus $45
processing fee if
not a new
instructor
Copying Fees
a) Flash Drive Copying $10 per media
b) Paper Documents $0.35 per copy

210
Administrative Fees & Rentals
Activity Current Fee Proposed
Amendment
4 Electric Vehicle Charging Station
a) Per kWh $0.43 per kWh
Miscellaneous Fees
Returned Check Fee $25 Each
Subpoena Response Fee $15 Each
Verification of Life $51 Each
Facility Rental Fees/Deposits
a) Application Processing Fee NEW $492 Each
b) Date Change Fee NEW $114 Each
c) Storage Fee NEW $144 Each
d) Insurance (Town-purchased) Current
carrier rate
Plus $45
processing fee

d) Community Hall
i) Resident Only Rental Fee $2,777 per day
ii) Deposit $1,000 deposit
iii) Key Deposit NEW $150 deposit

e) Community Hall – Memorial Service
i) Current/Past Resident Only Rental
Fee $1,389 per day
ii) Deposit $500 deposit
iii) Key Deposit NEW $150 deposit

f) Community Hall – Local Non-profit
within Town limits
i) No Fundraiser No charge
ii) No Fundraiser – Deposit $1,000
iii) Fundraiser $1022
iv) Fundraiser – Deposit $1,000
211
Administrative Fees & Rentals
Activity Current Fee Proposed
Amendment
5 v) Key Deposit NEW $150 deposit

g) Community Hall – Public Agency
i) Public Agency NEW $1,028 per day
ii) Deposit NEW $350 deposit

d) Alder or Buckeye Room minimum rental
meetings 2 hours; parties 4 hours
i) Resident Rental Fee $111 $288 per hour
ii) Deposit $250 deposit
e) Kitchen (must rent with room)
i) Rented with Community Hall No charge $83 per event
ii) Rented with Alder or Buckeye Room --
Resident $111 per event
iii) Deposit $100 deposit
f) Redwood Grove (Weddings only)
i) Resident Fee $172 per event
ii) Deposit $100 deposit
g) Staff Time/Consultation for Rentals
i) First hour Consultation Fee Free $246 per hour
ii) Each additional hour (fully burdened
staff hourly rate) $65 per hour
Sport User Fees
a) Town Fields
i) Town Sponsored; Schools (Town
Council; Town Committees; PV School
District; Woodside Priory)
$0 no fees/no
deposit
ii) Local Organized Youth Leagues
(Alpine/West Menlo Little League; AYSO;
Kidz Love Soccer)
$44 $48 per
person/season
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Administrative Fees & Rentals
Activity Current Fee Proposed
Amendment
6 iii) Local Organized Youth Clubs (Alpine
Strikers; CYSO) $67 $74 per person/season
iv) Local Organized Adult Leagues (PV
Adult Soccer League; PV Softball) $67 $74 per person/season v) Local Organized Adult Clubs (PV
Soccer Club) $100 $110 per person/season
vi) Deposit for ii. through v. above $500 deposit
Town Courts
b) Local Organized Adult Clubs
(Pickleball, Tennis, Basketball) $100 per person/per season i) Deposit $500 deposit

c) Private Parties, Picnics, Pick-up Games
i) Local Informal Groups $3 per person/use
ii) Deposit - 50 or fewer $100 deposit
iii) Deposit – 51 or more $500 deposit

d) Commercial Use (clinics and classes) 15% of gross revenue i) Deposit $500

e) Picnic Spaces (next to Little Peoples’
Park – Town Center) $3 $13 per person/use
i) Deposit $100

f) Ford Field Parking Lot
i) Residential $108 per day
ii) Deposit $100 deposit
iii) Commercial $108 $117 per day
$3,240 $3,529 monthly
iv) Deposit $100 deposit

213
Administrative Fees & Rentals
Activity Current Fee Proposed
Amendment
7 g) Date Change Fee 20% of
rental $114 per hour
h) Cleaning Fee NEW $25 per hour

Special Events Permit
a) Special Event Permit NEW $246 each
b) Litter Deposit $130 deposit

1. Payment by credit card or other payment platform may be subject to third party transaction or other fees.

2. The Cleaning Fee will be assessed if additional clean-up is required by the Town after the rental period has ended and will be deducted from initial deposit. If the Cleaning Fee exceeds the initial deposit, then the applicant will pay the difference.

3. The $45 processing fee for Town-purchased insurance for any rental period, except for a town-sponsored event, will be assessed for each event, however, if the insurance is being purchased for a new instructor at the time of initial application, then the $45 application processing fee will include the purchase of insurance. 214
Classification of Service Fee Name Current Staff Matrix Department
Classes
Classes Application Processing Fee (New Instructors) New $45 $197 Town Registration Fees 20% 20% 20%
Insurance (if supplied by the Town)
Non-sports Instruction Current Carrier Rate
Current Carrier Rate +
Processing Fee
Current carrier rate +
Processing Fee
Sports Instruction Current Carrier Rate
Current Carrier Rate +
Processing Fee
Current carrier rate +
Processing Fee
Facility Rental Fees / Deposits
Rentals Application Processing New $492 $492
Rentals Date Change Fee 20% of rental charge $114 $114
Rentals Storage Fee New $144 $144
Rentals Cleaning Fee New $25 $25
Community Hall
Rentals - Resident Resident Only Rental Fee $2,777 $2,777 $2,777 Non-resident Fee
Deposit $1,000 $1,000 $1,000
Key Deposit New $150 $150
Community Hall - Memorial Service
Rentals - Resident Current / Past Resident Only Rental Fee $1,389 $1,389 $1,389 Deposit $500 $500 $500
Key Deposit New $150 $140
Community Hall - Local Non-Profit within Town Limits
Rentals - Local Non-Profit within Town Limits No Fundraiser $0 $0 $617 No Fundraiser - Deposit $1,000 $1,000 $1,000
Rentals - Local Non-Profit within Town Limits Fundraiser $1,022 $1,022 $1,022 Fundraiser - Deposit $1,000 $1,000 $1,000
Key Deposit New $150 $140
Community Hall - Public Agency
Rentals - Public Agency Public Agency New $1,028 $1,028 Deposit New $350 $350
Alder or Buckeye Room (minimum rental is 2 hours)
Rentals - Resident Resident Fee Rental Fee $111 $230 $230 Non-resident Fee
Deposit $250 $250 $250
Kitchen (must rent with another room)
Rentals Rented with Community Hall $0 $83 $83
Rentals - Resident Rented with Alder or Buckeye Room - Resident Rental Fee $111 $111 $111 Rented with Alder or Buckeye Room - Non-resident
Deposit $100 $100 $100
Redwood Grove (Weddings Only)
Rentals - Resident Resident Fee Rental Fee $172 $172 $172 Non-resident Fee
Deposit $100 $100 $100
Staff Time / Additional Consultation for Rentals
Rentals First Hour $0 $246 $246
Rentals Each additional hour (fully burdened staff hourly rate) $65 $246 $246 Sport User Fees
Field Rentals Date Change Fee 20% of rental permit $114 $114 Field Rentals Cleaning Fee New $25 $25
Town Fields
Field Rentals - Town Sponsored; Schools Town Sponsored; Schools (Town Council; Town Committees; PV School District; Woodside Priory) $0 $0 $82 Field Rentals - Local Organized Youth Local Organized Youth Leagues (Alpine/West Menlo Little League; AYSO; Kidz Love Soccer) $44 $48 $82 Field Rentals - Local Organized Youth Local Organized Youth Clubs (Alpine Strikers; CYSO) $67 $74 $82 Field Rentals - Local Organized Adult Local Organized Adult Leagues (PV Adult Soccer League; PV Softball) $67 $74 $110 Field Rentals - Local Organized Adult Local Organized Adult Clubs (PV Soccer Club) $100 $110 $110 Deposit $500 $500 $500
Town Courts
Local Organized Adult Clubs (Basketball, Tennis, Pickleball) $100 $100 $110 Deposit $500 $500 $500
Private Parties
Local Informal Groups $3 $3 $0
Non-local Informal Groups
Deposit - 50 or Fewer $100 $100 $0
Deposit - 50 or More $500 $500 $0
Commercial Use
Clinics and Classes (Pickleball, Tennis, etc) 15% 15% $0 Deposit $500 $500 $500
Picnic Spaces
Park Rentals Next to Little Peoples' Park - Town Center $3 $13 $13 Deposit $100 $100 $100
Ford Field Parking Lot
Residential
Park Rentals - Resident Parking Lot $108 $108 $108
Deposit $100 $100 $100
Commercial
Park Rentals - Commercial Parking Lot - Daily $108 $117 $117 Park Rentals - Commercial Parking Lot - Monthly $3,240 $3,529 $3,529 Deposit $100 $100 $100
Special Events
Special Events Special Event Permit New $246 $246
Litter Deposit $130 $130 $130
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TOWN OF PORTOLA VALLEY

STAFF REPORT
TO Mayor and Members of the Town Council
FROM: Darcy Smith, Town Manager
Catherine Engberg, Town Attorney
DATE: June 24, 2026
RE: Hold Second Public Hearing Regarding Proposed Adoption of a Town Charter

RECOMMENDATION
Staff recommend that the Town Council hold a second public hearing regarding the adoption and contents of a Town Charter to be considered in the future to be submitted to the voters on the November 3, 2026 Statewide General Election Ballot.

BACKGROUND
One of the Town Council’s priorities is financial responsibility and long-term viability. In a recent community survey and through The Portola Valley Conversation – a discussion involving hundreds of residents about protecting emergency services and our financial stability – residents said that ensuring the Town’s fiscal stability and protecting the Town’s autonomy were top priorities. Strategies to demonstrate financial responsibility have included efforts by the Town to educate the community on Town finances, complete the backlog of financial audits, implement the recommendations from the Krisch & Co Report, conduct a user fee study, and develop and implement the necessary infrastructure to improve operational efficiency and effectiveness.

The recommendation to adopt a Town Charter would address resident priorities identified through the Portola Valley Conversation. Hundreds of residents have participated in that Conversation, and they identified priorities including maintaining wildfire prevention services such as vegetation and brush management/clearance programs to reduce the chance of a wildfire; maintaining 911 emergency response times and police patrols; preventing a County takeover of local zoning and planning services; and repairing deteriorating storm drains to prevent system failure, flowing and water pollution and sinkholes.

The updated long-range General Fund fiscal forecast indicates an ongoing structural deficit of approximately $700,000 per year. Without new revenue, the General Fund reserve will fall below the minimum reserve policy level of 20% of annual operating expenditures by the end of FY 2027-28 and will be depleted by the end of FY 2029-30. 216
The following graph shows the predicted shortfall in General Fund Reserves:

Ensuring the Town’s fiscal solvency will require locally controlled revenue enhancement.

As a strong fiscal steward of taxpayer dollars, the Town has already taken steps to close the revenue gap by initiating a comprehensive user fee study that will ensure that the appropriate cost recovery is being achieved in building and planning services, field and facility rentals, and other administrative charges.

To address long-term viability, the Finance Committee was tasked in May 2024 with researching several topics that could address the Town’s structural deficit. Over the summer of 2024, the Finance Committee made several presentations of their findings and made recommendations for the Town Council to consider that would address the Town’s structural deficit. In May 2025, the Town Council initiated a work program that included a community survey. In August 2025, the Town Council received additional information regarding the Town’s current financial situation and provided direction to the Ad Hoc Town Council Subcommittee and staff regarding Locally Controlled Revenue Options.

As highlighted above, a community survey of Portola Valley registered voters was completed in September 2025, and the results were presented to the Town Council in November 2025. The community survey identified the need to be prepared for natural disasters such as wildfires, earthquakes, flooding, or landslides. Community priorities include prevention measures, evacuation planning, and reliable emergency response communication systems to help keep residents safe.

Finally, Portola Valley residents responded that they wish to protect Town autonomy and the Town’s ability to make its own zoning decisions as an incorporated community.

Survey responses indicated that residents do not want zoning and planning decisions to be made by the County, which would occur if the Town lost its independent status. The 217
survey indicated that 60% of Town residents are supportive of the Town’s becoming a Charter Town. This input has led Town staff to continue engaging the community on the Charter approach.

The Town’s research and survey indicated that the most viable option for increasing Town revenue, which is supported by residents, is the potential to adopt a Real Property Transfer Tax (RPTT). RPTTs are solely applied to the sale of real property, and are ONLY paid by the purchasers or sellers of real properties; i.e., not by real property owners who do not sell their property. An agreement between the buyer and seller may determine who pays the cost. If enacted, the RPTT would develop a locally generated and controlled funding source that the Town could use to maintain and/or increase the current level of services and facilities provided by the Town.

However, only Charter Cities and Towns may adopt an RPTT beyond the minimal “documentary transfer tax” amount authorized under state law. Pursuant to California Revenue and Taxation Code sections 11901 et seq, a general law city or town is authorized to impose a documentary transfer tax of up to 27.5¢ per $500 of the sales price for real property transfers. The Town adopted such a documentary transfer tax in 1967. However, as a General Law Town, it is restricted from adopting a real property transfer tax beyond the minimum allowed in state law. As other towns/cities have done, our Town would need to obtain voter approval to adopt a Charter and become a Charter Town in order to have the authority to adopt the RPTT.

Charter Towns
The California Constitution allows cities and towns to be organized under the general laws of the State or under a charter adopted by the local voters. General Law cities or towns are bound by the state’s general law, even with respect to municipal affairs. A General Law City or Town has the authority to act locally, but its actions must be consistent with state law.

By contrast, a Charter City or Town is authorized to exercise local authority over municipal affairs. Article XI of the California Constitution allows cities and towns to adopt a charter, a document that provides the legal framework for the purpose, governance, and operation of a city government. A charter maximizes local control over municipal affairs. According to the League of California Cities, there are currently approximately 362 General Law and 121 Charter Cities/Towns. Thus, Charter Cities/Towns represent approximately 26% of California’s municipalities.

The Town of Portola Valley currently operates as a General Law Town. Transitioning to become a Charter Town would require voter approval of a ballot measure approving a Town Charter. State law defines a structured process that the Town must complete to become a Charter Town, including preparation of a proposed charter, public review and public hearings, and placement of the measure on a ballot. The process can be initiated either by the Town Council on its own motion, or the voters may elect a charter commission to draft the charter.

Municipal Affairs
The state Constitution sets out a nonexclusive list of four “core” categories that are, by definition, municipal affairs. These categories are:
1) Regulation of the “city police force”;
2) “Subgovernment in all or part of a city”;
218
3) “Conduct of city elections”; and
4) “The manner in which . . . municipal officers [are] elected.” Outside this list, the courts decide what constitutes a municipal affair on a case-by-case basis, which results in a concept that is fluid and changes over time. Areas that the courts have said constitute municipal affairs include:
• The levy and collection of taxes.
• The form of city government.
• Procedural aspects of resolution and ordinance adoption. • Local elections, including qualifications for office and public funding of campaigns.
• Some aspects of zoning and land use.
• The process of contracting for public works.

Charter Town Authority Over the Real Property Transfer Tax The primary reason for Portola Valley to become a Charter Town is to allow for more options for funding local operations. General Law cities and towns, including Portola Valley, currently split the “Documentary Transfer Tax” with the county (each receives 55¢ for each $1,000 of the purchase price of real property). Charter Cities and Towns may adopt—with voter approval—an RPTT at any rate. The revenue from an RPTT is not split with the county.

Town Council Direction on Town Charter
The Town Council has held public meetings on the topic as follows:
• March 25, 2026 - Town Council received information and provided direction to staff regarding Fiscal Year 2026-27 Operating and Capital Budget Revenues.

The Council also directed staff to prepare a ballot measure for the November 3, 2026 election that includes a Town Charter and a proposed RPTT. • April 22, 2026 - Town Council received information and provided direction to staff to prepare a simple and brief charter modeled after the proposed charter from the City of St. Helena. The Council requested that staff evaluate the need to include Article IV Form of Government contained in the St. Helena charter. The charter should state that the Town is exercising its authority to levy the RPTT but otherwise is continuing to be subject to general State law. Under this recommendation, the Town would continue to be subject to State general law for topics including, but not limited to, local elections and public contracting. This simpler approach is recommended to ensure that the Town stays on schedule and achieves its primary aim of generating increased revenue with the RPTT. • May 13, 2026 – First Public Hearing on the Draft Charter. The Council received comments and provided direction to proceed to the second public hearing. The Council raised some questions about specific provisions within Section 100 of the Charter, “Exercise of Constitutional Power of Local Taxation.” The charter shows this change in redline.

Both the Town Charter and the RPTT would become effective only if adopted by a 50 percent plus one vote of the Portola Valley electorate. Adoption of a charter requires a majority vote (50 percent plus one) of the Town's electorate. If voters approve the ballot measure, the Town would be converted from a General Law Town to a Charter Town, and the RPTT would be established effective January 1, 2027.
219

DISCUSSION
This agenda item presents the Town Charter for Council review to allow public discussion on the proposed charter before it is officially placed on the ballot. California Government Code Section 34458(b) states that prior to approving the submission to the voters of a proposal to adopt a charter, the governing body shall hold at least two duly noticed public hearings on the matter of the proposal of a charter and the content of the proposed charter.

The second hearing must be held at least 30 days after the first public hearing.

The draft Town Charter is attached for public comment and Town Council consideration.

At the last Town Council meeting, Council members had questions about whether, by specifying that the Town is authorized to adopt the RPTT, the Charter would otherwise limit the Town’s authority to generate revenue. The Charter would not limit the Town’s authority to generate other forms of revenue. Instead, becoming a Charter Town would broaden the Town’s authority to generate revenue. However, the Town Attorney has recommended a minor edit to the Charter to make it abundantly clear that the Town would have broad authority to generate revenue, which would include but not be limited to its authority to adopt the RPTT.

Proposed Timeline
The Town Council is tentatively scheduled for 2026 to review and finalize the ballot measure by the August 7th deadline. At the July 22, 2026 meeting, the Council will consider adoption of a Resolution to submit the Charter Town and Real Property Transfer Tax ballot measure to the voters on the November 3, 2026 Statewide General Election Ballot. Pursuant to State law, this meeting shall be held 21 days after the second public hearing. Additional meetings may be held, and public notice will be provided as required.

In parallel with the Council meeting timeline, the Town is conducting community education and outreach to ensure transparency and equitable public access to the Charter development process. Public outreach activities may include articles in regular Town publications and a community survey.

FISCAL IMPACT
It is estimated that the County will charge the Town approximately $6,000 to 7,200 to place the ballot measure on the November 3, 2026 Statewide General Election Ballot. In addition, there are legal, community education, and other direct costs associated with this effort. A total cost has not been calculated at the time, but the current Town operating budget includes budget appropriations to cover the current expenditures.

ATTACHMENTS

1. Draft Town of Portola Valley Town Charter
220
DRAFT

TOWN OF PORTOLA VALLEY CHARTER

STATEMENT OF PURPOSE
The Town of Portola Valley was incorporated as a general law town in 1964 by residents seeking the right to manage local affairs. With this Charter, the Town of Portola Valley will reclaim more local autonomy and expand the economic and fiscal independence of our Town government to promote the health, safety, and welfare of all its residents.

ARTICLE I

POWERS OF TOWN
100. Exercise of Constitutional Power of Local Taxation The Town of Portola Valley adopts this Charter to exercise all constitutional powers conferred on charter cities under Article XI sections 3 and 5 of the California Constitution with respect to municipal affairs in relation to local taxes, including a system for the imposition, levy and collection of such taxes. In particular, and without limiting the authority of the Town to generate revenue, the Town may impose a tax on the conveyance of real property, based upon the price paid for the real property (“real property transfer tax”). Any real property transfer tax imposed by the Town shall be in addition to any similar tax authorized by the general laws of the State of California. In the event of a conflict between this Charter and the general law, the provisions of this Charter shall govern.
101. Exercise of Powers Under General Laws
Except as provided in this Charter with respect to the power of the Town over local taxation, the powers of the Town shall otherwise be constrained by, subject to, and governed by the general laws of the State as now and hereafter existing relating to towns and cities organized under said general laws. The Town shall have the power and authority to exercise any and all rights and privileges lawfully granted to any general law city or town of the State of California. 102. Severability
If any provision of this Charter is found by a court of competent jurisdiction to be invalid, the remaining provisions of the Charter shall remain in full force and effect. 103. Effective Date of Charter/Amendment
This Charter, and any amendment or repeal of this Charter, shall be deemed ratified when approved by the voters of Portola Valley and shall take effect upon acceptance and filing by the Secretary of State of the State of California pursuant to Government Code Section 34460.

DRAFT
221
Draft Town of Portola Valley Charter Page 2 of 2

ARTICLE II

SUCCESSION
200. Name and Boundaries
The municipal corporation now existing and known as the Town of Portola Valley, also referred to herein as “the Town,” shall remain and continue to be a municipal body corporate and politic, as at present, in name, in fact, and in law. The boundaries of the Town shall be as established at the time this Charter takes effect, or as they may be changed thereafter in the manner authorized by law.
201. Rights and Liabilities
The Town shall remain vested with and continue to have, hold, and enjoy all property, rights of property, and rights of action of every nature and description now pertaining to this municipality, and is hereby declared to be the successor of same. It shall be subject to all the obligations, contracts, liabilities, debts, and duties that now exist against or with the Town. 202. Ordinances, Codes, and Other Regulations
All ordinances, codes, resolutions, regulations, rules, and portions thereof, in force at the time this Charter takes effect, and not in conflict or inconsistent herewith, shall continue in force until repealed, amended, changed, or superseded in the manner provided by this Charter and any other applicable laws.
203. Pending Actions And Proceedings
No action or proceeding, civil or criminal, pending at the time this Charter takes effect, brought by or against the Town or any officer, office, or department thereof, shall be affected or abated by the adoption of this Charter, or by anything herein contained.

DRAFT
222
______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Darcy Smith, Town Manager
Anthony McFarlane, Assistant Town Manager
DATE: June 25, 2025
RE: Proposed FY 2026-27 Operating and Capital Budget
RECOMMENDATION:

Staff recommends that the Town Council adopt a resolution authorizing the FY 2026-27 Operating and Capital Budget

REPORT SUMMARY
Adopting the budget is one of the key responsibilities of the Town Council. The budget establishes the resources for the top Council priorities and communicates those priorities to the community and the staff.

The development of the FY 2026-27 budget reflects the challenges of providing services during a time of fiscal uncertainty and community questioning. It is important that we identify which services and outcomes are most important to the community, the committees, and the Council. This new fiscal year will require substantial commitment to solve the stark reality of the financial challenges that lie ahead.

This budget will require some reliance on the unreserved fund balance. The General Fund, with which the Council has broad discretion, will require use of approximately $0.22 million in reserves.

Council Priorities
Earlier this year at the March 16, 2026, Town Council meeting, the Town Council approved the following Council Priorities for FY 2026-27:
• Fiscal Responsibility and Long-term Viability
• Safety
• Operational Efficiency and Effectiveness
• Responsible Land Use
• Community
• Environmental Sustainability

TOWN OF PORTOLA VALLEY

STAFF REPORT

TOWN OF PORTOLA VALLEY
223
Report & attachments published by June 21, 2026 7:00 p.m.

Fiscal Year 2026-27 Operating & Capital Budget June 24, 2026 The community has also identified the following top priorities for the Town. • Maintain wildfire prevention services.
• Maintain 911 emergency response times and police patrols. • Preventing a county takeover of local zoning and planning services. • Repairing a deteriorating storm drain system to prevent system failure, flooding, water pollution, and sinkholes.

High Level Analysis of the Proposed Budget
The 2026-27 budget illustrates the structural deficit in the General Fund that has been ongoing post-COVID. The Town’s revenues are not keeping pace with Town expenditures. Although the Town is a smaller organization in comparison to our neighbors, the Town faces the same mandates but with fewer resources. As such, the reliance on the use of consultants is paramount to meeting the service levels and changing State requirements in Planning and Building. The increases in the Sheriff’s contract are handcuffing alternatives to service delivery models that could increase organizational efficiency and effectiveness. Even with these challenges, the Town continues to prioritize trail maintenance and fire mitigation.

All Funds Overview
In total, the proposed budget projects a spending plan of $12,523,331, including the use of $928,312 in reserves. This represents a 6.7% increase over the 2026 budget. General Fund reserves continue to decrease due to the increase in the Sheriff’s contract, additional use of consultants for the Housing Element, and the loss of one-time funds.

The use of reserves is not sustainable, requiring thoughtful consideration on how to rebalance services and identify new locally controlled revenue sources.

General Fund Overview
The proposed FY 2026-27 budget anticipates a General Fund budget of $9.1 million including a deficit of $679 thousand. With the General Fund reserve at an estimated $2.65 million the reserve is estimated to be approximately $1.97 million. The most significant increase this year is the impact of funding payment for the Sheriff’s contract. In the past three fiscal years, the Town has used a combination of credits and one-time funding to offset approximately $1.6 million in costs to the General Fund.

General Fund Revenue
Overall, projected General Fund revenues total $8,420,987 an increase of $468,212 (or

5.89%) when compared to the prior year’s budgeted amount. Few revenue sources are showing significant changes; those changes of note, or those fees of import to the Town’s General Fund revenues are as follows:
224

Fiscal Year 2026-27 Operating & Capital Budget June 24, 2026 • Property Taxes - Property Tax remains the Town's primary source of revenue.

During the coming year, other sources should be identified. Property Tax revenues include Education Revenue Augmentation Funds (ERAF) of $350,000, and Vehicle License Fees (VLF) of $450,000.
• Utility Users' Taxes (UUT) and Franchise Fees - These two sources are important revenue for Town Services. UUT are derived from users' consumption of utility services, and franchise fees are charged to utilities for their use of Town roads, right-of-way, and other Town-owned property.
• User Fees – the budget estimates a $158,000 increase in user fees such as Licenses and Permits and Charges for Services because of the User Fee Study and amendments to the Master Fee Schedule
General Fund Expenditures
General Fund expenses are projected to be $9,099,562, an increase of $883,767 (or

10.76%) in comparison to the prior year’s budgeted amount. The budget funds 15 FTE to provide services varying from administrative, building and planning, recreational, and public works.

No additional positions are recommended this year, although employee costs increased by about $144,944 due to benefit changes, fewer vacancies, and salary modifications.

Other significant changes in the General Fund budget include:
• An increase in the Police Services budget of $488,130 due to the increase in the contract, expiration of credits and one-time funding.
• An increase in the use of consultants of $158,000 to augment current staffing resources.

Capital Improvement Plan
The FY 2026-27 Proposed Capital Improvement Plan Budget of $1.45 million includes the following expenditures:
• $965,559 for road resurfacing.
• $$20,000 for emergency storm repairs.
• $25,463 for Trail Rehabilitation.
• $64,415 for Energy Efficiency Upgrades.
• $381,777 for installation of EV Charging Stations.

Focus on Land Use Projects and Programs
The Town continues to monitor State housing requirements related to Housing Element certification; additional work is still needed post adoption. The budget includes additional consulting costs related to post-adoption in addition to its current roster of consultants to provide the day-to-day services related to building and planning. 225

Fiscal Year 2026-27 Operating & Capital Budget June 24, 2026 Forecasting the Future
The Town is facing an uncertain future with its current structural deficit. Costs are and will continue to exceed revenues on a consistent basis. Over the next two fiscal years and without new locally controlled revenue, nearly $1.2 million in cost reductions will need to be identified to maintain the 20% minimum reserve threshold. Without this additional locally controlled revenue, the Town is at risk of depleting reserves. The alternative is drastically reducing staffing levels and consultant services that will severely impact the level of services that the community wants.

ENVIRONMENTAL IMPACT
The recommended Town Council action to adopt a resolution authorizing the Fiscal Year 2026-27 Operating and Capital Budget is not considered a “project" under the California Environmental Quality Act (CEQA) Guidelines and is therefore exempt from CEQA requirements. As provided by CEQA Guidelines Section 15378(b)(5), a “project” does not include “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” Adoption of the resolution is therefore exempt from CEQA and no further environmental analysis is required.

FISCAL IMPACT
Projected revenues for all funds including the use of reserves - $13,503,521.

Projected expenditures for all funds including transfers - $12,523,131.

ATTACHMENTS

1. Resolution

2. Proposed Budget Book
226
RESOLUTION NO. ______-2026

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN

OF PORTOLA VALLEY ADOPTING THE OPERATING
AND CAPITAL BUDGET FOR FISCAL YEAR 2026-27
WHEREAS, the Town Manager has reviewed and analyzed the Town of Portola Valley's finances and has projected revenues and expenditures for Fiscal Year 2026-27; and
WHEREAS, the Assistant Town Manager presented the proposed budget to the Town’s Finance Committee on June 2, 2026, and to the Town Council on June 10, 2026, for review and consideration; and
WHEREAS, the Town Council reviewed the proposed operating and capital budget on June 24, 2026.

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

1. To adopt the Town's Fiscal Year 2026-27 operating and capital budgets, overall reflecting the following:
a. Projected revenues: $13,503,521
b. Projected expenditures & transfers: $12,523,131

2. The budget shall be effective July 1, 2026.

3. The amount of the 2026-2027 Fiscal Year operating and capital budget for each account area of the budget may be drawn upon in the form of warrants issued for payment of demands and certified in accordance with the provisions of the California Government Code Sections 37208 and 37209.

4. The Town Manager shall periodically report to the Town Council the amount and classification of revenues received and expenditures made.

5. A copy of the adopted budget shall be kept on file with the Town Clerk of the Town of Portola Valley, as the official budget of the Town of Portola Valley for the 2026-2027 Fiscal Year.

REGULARLY PASSED AND ADOPTED this 24
th day of June 2026.
_____________________________
Craig Taylor, Mayor
ATTEST
__________________
Veronica Dao, Town Clerk
227
About this Document
Compiled by Administration and Finance
Budget Team:

Darcy Smith, Town Manager
Anthony McFarlane, Assistant Town Manager
Sarah Cawrse, Planning & Building Director
Cindy Rodas, Administrative Services Manager
Questions? Email:
[email protected]

TABLE OF CONTENTS
Transmittal Memo
Budget Resolution
Appropriations Limit Resolution
Salary Schedule
Authorized FTE
Organization Chart

SECTION I - FINANCIAL SUMMARY
Fund Descriptions
Sources - All Funds
Requirements - All Funds
Sources - General Fund
Requirements - General Fund
Revenues & Expenses by Governmental Funds
Fund Activity Summary

SECTION II - DEPARTMENTS

ADMINISTRATION
Town Council - 110
Town Committees - 115
Town Manager - 120
Town Attorney - 125
Town Clerk - 130
Town Finance - 140

PUBLIC SAFETY
Police Services - 210
Fire Services - 220
Dispatch Services - 230

PLANNING & BUILDING
Planning Division - 310
Building Division - 320
Code Compliance - 330
Customer Deposits - 340

RECREATION SERVICES
Community Hall - 410
Parks & Fields Operations - 420

PUBLIC WORKS
Public Works - 510

NON-DEPARTMENTAL
Non-Departmental - 610
Road Maintenance Districts - 620

SECTION III - CAPITAL PROJECTS
CIP Overview

SECTION IV - APPENDIX
Glossary
FAQ
Reserve Policy
Investment Policy
Donation Policy
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Proposed Operating & Capital Budget
Fiscal Year 2026-2027
228
Town of Portola Valley, California
Transmittal Memo
229
230
231
232
233
Town of Portola Valley, California
www.portolavalley.net
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Town of Portola Valley, California
Budget Resolution
235
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Town of Portola Valley, California
Appropriations Limit Resolution
237
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Town of Portola Valley, California
Salary Schedule
239
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Town of Portola Valley, California
Organization Chart
241
Town of Portola Valley, California
FY 2026-27 Authorized FTE
242
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Town of Portola Valley, California
Fund Descriptions
244
245
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Town of Portola Valley, California
Sources - All Funds
247
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Town of Portola Valley, California
Requirements - All Funds
249
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Town of Portola Valley, California
Sources - General Fund
251
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Town of Portola Valley, California
Requirements - General Fund
253
Town of Portola Valley, California
Revenues & Expenses by Governmental
Fund
254
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Town of Portola Valley, California
All Funds Summary
256
Section II - Administration: 110 Town Council Division
Description
Our representative government starts with the Town Council. Elected to serve as the governing body for the Town, the Council is made up of five residents who have chosen to volunteer their time to ensure that all residents have a voice in our most important decisions. Council members are responsible for bringing together varied, and oftentimes, conflicting information, feedback, and data, to make the best decisions possible for residents.

Duties include:

Fiscal oversight
Serve as the legislative body of the Town, by adopting municipal code Representation of the town's interests in regional, state and federal matters Approves compensation changes for staff
Approves major contracts for services, software and capital improvements Section II: Town Council - 110
Expenses
65012 - Education & Training $1,278 $15 $0 $0
65013 - Educ/Train: Council & Commissn $60 $1,184 $1,500 $5,000 65014 - Dues $0 $17,023 $1,500 $1,700
EXPENSES TOTAL $1,338 $18,222 $3,000 $6,700
Town of Portola Valley
Town Council
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
257
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Section II - Administration: 115 Town Committees Division Town Committees
The Town of Portola Valley was founded in 1964 by a group of civic-minded residents, who donated countless hours performing the necessary tasks to support the operation of a small municipal government. Whether it was unclogging culverts during winter rainstorms or clearing trails, this group of intrepid founding fathers (and mothers!) willingly did much of the work that was vital for the Town's ongoing governance.

Section II: Town Committees - 115
Revenues
44056 - Zots to Tots – – $0 $9,000
REVENUES TOTAL $0 $0 $0 $9,000
Expenses
62323 - Volunteer Appreciation $16,257 $0 $0 $0
62324 - Science & Nature $0 $0 $0 $1,600
Town of Portola Valley
Town Committees
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
259
63203 - Conservation Committee $0 $65 $250 $2,786
63204 - Cultural Arts Committee $13,670 $13,954 $10,000 $3,350 63205 - Emerg Preparedness Committee $2,041 $1,235 $1,300 $1,100 63206 - Historic Resources Committee $99 $0 $250 $600
63208 - Parks & Recreation Committee $22,125 $28,720 $19,300 $25,000 63209 - Sustainability Committee $0 $0 $250 $0
63211 - Trails & Paths Committee $10,785 $169 $2,950 $7,500 63212 - Wildfire Preparedness Committe $0 $0 $250 $3,000 63213 - Open Space Acquisitions $0 $0 $250 $0
63214 - Geologic Safety Committee $0 $0 $250 $600
EXPENSES TOTAL $64,976 $44,144 $35,050 $45,536
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FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
260
Section II - Administration: 120 Town Manager Division
Mission Statement
The Town Manager's mission is to supervise, direct and be responsible for the efficient administration of all functions and activities for which the office of Town Manager is given authority, responsibility, or control by Town Charter, by ordinance, by vote of the Town Council, or otherwise.

Section II: Town Manager - 120
Expenses
62335 - Misc Grants $8,676 $0 – –
51011 - Salaries - Permanent $564,276 $741,108 $797,068 $713,535 51021 - Vacation Buyout $0 $0 $29,290 $5,000
51031 - Automobile Allowance $3,917 $3,250 $6,000 $4,500 55011 - Retirement - PERS $131,836 $135,458 $89,804 $80,969 55012 - Retirement - Soc Sec $34,970 $31,691 $41,906 $36,217 55013 - Medicare $8,609 $10,263 $11,731 $10,346
55021 - Health Insurance Medical $173,384 $19,405 $27,008 $32,758 55022 - Health Opt Out $5,600 $3,900 $0 $0
55024 - Health Ins Dental & Vision $31,967 $26,944 $9,757 $8,639 55025 - Cafeteria Plan Mgmt $29,362 $45,806 $80,876 $70,279 55031 - Long Term Disability Insurance $4,582 $5,213 $2,804 $2,341 55033 - Workers Compensation $42,203 $51,462 $4,935 $4,353 Town of Portola Valley
Town Manager Division
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
261
55051 - Deferred Compensation $0 $13,599 $11,952 $0
62099 - Miscellaneous Consultants $0 $20,073 $25,000 $103,000 62251 - Elections $0 $1,166 $0 $0
62329 - Sustainability $6,155 $0 $0 $0
65012 - Education & Training $1,034 $191 $0 $12,740
65014 - Dues $6,628 $2,027 $0 $5,000
EXPENSES TOTAL $1,053,197 $1,111,556 $1,138,131 $1,089,677 765 Portola Road
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FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
262
Section II - Administration: 125 Town Attorney
Description
The Town Attorney provides legal services via contract with the law firm Shute, Mihaly, Weinberger, LLP. Legal services include providing legal advice, assistance, and representation to the Town Council, Commissions, Committees, and Departments. The Town Attorney also provides legal resources and advice in respect to several specialized areas of the law that span departments including Public Records Act (PRA) requests, personnel matters, and contract administration.

Section II: Town Attorney - 125
Revenues
40000 - Appropriated Fund Balance – – $0 $29,831
REVENUES TOTAL – – $0 $29,831
Expenses
62032 - Town Attorney – – $0 $304,831
62052 - Legal Services – – $0 $30,000
EXPENSES TOTAL – – $0 $334,831
Town of Portola Valley
Town Attorney
Back to Table of Contents
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
263
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Section II - Administration: 130 Town Clerk
Town Clerk
The Town Clerk provides transparent access to the Town’s official records, including minutes to all Town meetings, and ensures regulatory compliance with state and federal laws.

Duties of the Town Clerk include:

City Council Support and Meeting Administration
Boards, Commissions, and Committee Members Administration Conducting Municipal Elections
Filing Officer for Campaign and Conflict of Interest Statements Public Information and Citywide Records Management
Research for Town Departments and Residents
Recordation, Preservation, and Maintenance of the City's Legislative History The Town Clerk is your partner in democracy.

Section II: Town Clerk - 130
Town of Portola Valley
Town Clerk
265
Revenues
46079 - Miscellaneous Receipts $0 $0 $0 $5,000
REVENUES TOTAL $0 $0 $0 $5,000
Expenses
51011 - Salaries - Permanent $90,506 $24,296 $120,000 $126,690 55011 - Retirement - PERS $5,774 $1,903 $9,552 $10,047
55012 - Retirement - Soc Sec $4,380 $1,599 $7,440 $7,855 55013 - Medicare $1,024 $1,073 $1,740 $1,837
55021 - Health Insurance Medical $0 $0 -$342 -$342
55022 - Health Opt Out $0 $1,500 $0 $0
55024 - Health Ins Dental & Vision $0 $0 $1,108 $1,108
55025 - Cafeteria Plan Mgmt $11,399 $2,451 $16,693 $16,693 55031 - Long Term Disability Insurance $0 $0 $504 $504
55033 - Workers Compensation $0 $0 $732 $773
62099 - Miscellaneous Consultants $0 $130,479 $92,317 $0 62251 - Elections $9,592 $0 $0 $27,600
62305 - Software & Licensing $3,501 $3,676 $17,399 $5,124 65012 - Education & Training $2,027 $1,322 $1,300 $5,000 65014 - Dues $1,200 $0 $0 $0
EXPENSES TOTAL $129,404 $168,300 $268,443 $202,889
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FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
266
Section II - Administration: 140 Finance Division
Description
The Finance Department is responsible for preserving, enhancing and supporting the Town’s finances by creating an annual budget for Town Council adoption, monitoring the Town’s fiscal health, supporting department needs, and providing accounting, human resource and auditing services that ensure the Town’s limited funds are expended in a transparent and accountable fashion. The Finance Department's goal is to assist in fulfilling the Council's budgetary priorities and maintain the Town's fiscal health.

Duties of the Finance Department include:

Development of the annual budget
Processing invoices
Performing the Town's accounting duties
Managing the Town's role in independent audits
Preparing reports on fund expenditure to the County and State Serving administrative Human Resources functions such as payroll, benefits and workers compensation Section II: Finance - 140
Town of Portola Valley
Finance Division
267
Expenses
51011 - Salaries - Permanent $371,843 $413,740 $486,286 $562,976 51031 - Automobile Allowance $0 $2,500 $3,000 $1,500
55011 - Retirement - PERS $32,213 $33,778 $38,708 $44,644 55012 - Retirement - Soc Sec $15,597 $25,418 $26,892 $32,803 55013 - Medicare $3,648 $5,382 $7,051 $8,163
55021 - Health Insurance Medical $0 $22,969 $17,680 $16,057 55024 - Health Ins Dental & Vision $0 $0 $8,005 $7,526
55025 - Cafeteria Plan Mgmt $32,863 $53,447 $63,435 $71,782 55031 - Long Term Disability Insurance $0 $0 $1,973 $2,349 55033 - Workers Compensation $0 $0 $2,966 $3,434
62031 - Accounting & Auditing $142,277 $6,634 $136,182 $45,400 62099 - Miscellaneous Consultants $59,977 $16,738 $30,000 $50,000 62305 - Software & Licensing $43,124 $28,600 $44,850 $48,975 65012 - Education & Training $0 $95 $0 $10,000
65014 - Dues $135 $1,634 $750 $1,000
65015 - Mileage Reimbursement $0 $11 $0 $0
EXPENSES TOTAL $701,677 $610,945 $867,778 $906,609
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FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
268
Section II - Public Safety: 210 Police Services
Description
The Town contracts for police services through a long-standing relationship with the San Mateo County Sheriff's Office. This contract provides a higher level of service provision, including assets that a small police department would otherwise not have access to.

Section II: Police Services - 210
Revenues
42812 - Prop 172 Public Safety $10,770 $9,671 $16,500 $18,000 42814 - Public Safety COPS Grant $152,016 $186,397 $163,600 $195,000 44011 - Interest $0 $0 $0 $7,700
REVENUES TOTAL $162,786 $196,068 $180,100 $220,700
Town of Portola Valley
Police Services
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
269
Expenses
62204 - San Mateo County Sheriffs Ofc $746,922 $1,694,959 $1,693,317 $2,345,257 62205 - COPS Addl Traffic Patrols $0 $266,500 $266,500 $191,500 EXPENSES TOTAL $746,922 $1,961,459 $1,959,817 $2,536,757 765 Portola Road
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FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
270
Section II - Public Safety: 220 Fire Services
Description
Fire services are provided by the independent Woodside Fire Protection District. The Town partners with Woodside Fire Protection District to provide services to residents and the community to mitigate fire risk in town. Programs include annual wood chipping program and shared CERPP coordinator who serves the Portola Valley Community.

The Town also funds various disaster/emergency work, including AM radio support, vegetation management, and evacuation capital.

Section II: Fire Services - 220
Revenues
42171 - ABAG Risk Mmgt Grant $0 $0 $1,600 $1,600
REVENUES TOTAL $0 $0 $1,600 $1,600
Expenses
61016 - ROW Tree Trimming & Mowing $6,500 $0 $30,000 $30,000 62047 - WFPD-Fuel Mitigation Program $90,944 $124,241 $185,000 $142,301 62208 - Fire Prevention $80,502 $124,295 $120,700 $97,748 63103 - ABAG Risk Mgmt Programs $1,600 $0 $1,600 $1,600 EXPENSES TOTAL $179,546 $248,536 $337,300 $271,649
Town of Portola Valley
Fire Services
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
271
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Section II - Public Safety: 230 Dispatch Services
Description
The 9-1-1 Communications Center is a Public Safety Answering Point (PSAP) and dispatch center providing the residents of San Mateo County a vital link to emergency response personnel from medical, fire, police, and sheriff’s office services.

Core Services
Primary and Secondary PSAP providing 911 callers access to public safety resources. This program also provides access to translation services and hearing impaired translation if needed.

PSC is an accredited center of excellence and provides services to all fire departments within San Mateo County; all 911 ambulances and provides pre-approved instruction through Medical Priority Dispatch Systems (MPDS) protocol.

Section II: Dispatch Services - 230
Expenses
62203 - Dispatch Services $54,722 $56,363 $75,151 $79,729 EXPENSES TOTAL $54,722 $56,363 $75,151 $79,729
Town of Portola Valley
Dispatch Services
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
273
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Section II - Planning & Building: 310 Planning Division Description
The Planning Division is responsible for processing all zoning applications, working with prospective applicants on their projects, providing interpretations of the Town's landuse code, and supporting the Planning and Architectural Site Control Commissions.

Section II: Planning Services - 310
Revenues
41912 - Site Development Permits $31,616 $27,126 $35,000 $50,000 41915 - Horsekeeping Permits $2,342 $0 $2,500 $2,500
41917 - Zoning & Planning Permits $400 $1,293 $400 $2,000 42799 - Misc Grants $160,000 $65,000 $85,000 $85,000
43017 - Subdivision Fees $6,398 $2,300 $6,000 $6,000
43018 - Residential Data Reports $4,333 $604 $5,000 $5,000 43019 - Pre-Application Mtg Fee $20,911 $9,079 $18,000 $18,000 43021 - Architectural Review Fees $11,019 $12,404 $18,000 $18,000 43024 - Geology Fees $10,570 $1,778 $13,000 $13,000
43033 - Town Planning Fees $4,765 $121,648 $20,000 $20,000 43042 - Appeals $0 $7,358 – –
44011 - Interest – – $0 $150,000
REVENUES TOTAL $252,354 $248,590 $202,900 $369,500
Town of Portola Valley
Planning Division
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
275
Expenses
51011 - Salaries - Permanent $302,321 $283,717 $318,850 $316,424 51031 - Automobile Allowance $0 $0 $1,138 $1,950
55011 - Retirement - PERS $23,905 $9,935 $17,789 $25,092 55012 - Retirement - Soc Sec $17,766 $17,834 $19,769 $18,627 55013 - Medicare $4,438 $4,171 $4,623 $4,588
55021 - Health Insurance Medical $0 $10,899 $4,806 $8,488 55022 - Health Opt Out $7,200 $2,000 $0 $0
55024 - Health Ins Dental & Vision $0 $0 $1,666 $2,049
55025 - Cafeteria Plan Mgmt $16,208 $14,092 $25,110 $30,883 55031 - Long Term Disability Insurance $0 $0 $608 $747
55033 - Workers Compensation $0 $0 $1,363 $1,930
55041 - Tuition Reimbursement $0 $0 $500 $0
62034 - Transcription Services $5,613 $3,810 $8,000 $8,000 62035 - Town Geologist $0 $0 $0 $10,000
62039 - Planner $134,652 $217,929 $68,000 $135,000
62099 - Miscellaneous Consultants $156,129 $43,259 $190,800 $371,361 62303 - Scanning $12,618 $0 $7,500 $7,500
62305 - Software & Licensing $4,840 $23,366 $18,000 $34,965 65012 - Education & Training $200 $200 $0 $5,000
EXPENSES TOTAL $685,890 $631,210 $688,522 $982,604
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FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
276
Section II - Planning & Building Department: 320 Building Division Description
The Building Division oversees applications for the construction of all projects in Portola Valley. Building officials are provided by contract, supported by full time staff.

Section II: Building Services - 320
Revenues
41911 - Building Permits $167,963 $67,791 $195,000 $225,000 41916 - Construction & Demolition Fee $33,256 $19,496 $35,000 $50,000 43011 - Plan Check Fee $224,559 $168,017 $260,000 $280,000 43012 - Inspection Fee $343,578 $279,633 $390,000 $430,000 43043 - BSA Fee $1,352 $401 $2,400 $2,400
43044 - SMIP Fee $4,053 $1,145 $7,500 $7,500
43045 - DSA Fee $0 $1,368 $1,300 $1,300
43049 - Miscellaneous Plan Charges $686 $0 $1,000 $1,000 REVENUES TOTAL $775,446 $537,852 $892,200 $997,200
Expenses
51011 - Salaries - Permanent $145,254 $84,218 $139,596 $127,626 51031 - Automobile Allowance $0 $0 $525 $900
55011 - Retirement - PERS $13,471 $2,954 $5,908 $10,121 55012 - Retirement - Soc Sec $7,866 $5,296 $8,655 $7,455 55013 - Medicare $1,970 $1,236 $2,024 $1,851
55021 - Health Insurance Medical $0 $3,719 $2,268 $3,902 55024 - Health Ins Dental & Vision $0 $0 $609 $997
Town of Portola Valley
Building Division
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
277
55025 - Cafeteria Plan Mgmt $13,472 $9,862 $9,181 $15,024 55031 - Long Term Disability Insurance $0 $0 $224 $366
55033 - Workers Compensation $0 $0 $453 $779
61031 - BSA/SMIP/DSA Fees $7,630 $389 $7,874 $1,000
62042 - Plan Check Services $92,595 $121,840 $120,000 $50,000 62099 - Miscellaneous Consultants $144,670 $105,793 $200,000 $300,000 62305 - Software & Licensing $1,254 $14,927 $2,500 $15,664 65012 - Education & Training $200 $200 $0 $5,000
65014 - Dues $0 $0 $0 $1,000
EXPENSES TOTAL $428,381 $350,433 $499,817 $541,685
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FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
278
Section II - Building & Planning: 330 Code Compliance Division Description
The Town is responsible for enforcing the Portola Valley Municipal Code, which includes the Zoning Ordinance and the California Building Codes pertaining to properties inside the Town of Portola Valley’s limits. The codes enforced cover public nuisances, zoning and land use violations, and building code violations. Common types of violations that are enforced include, but are not limited to:
• Structures or grading without permit (fences, sheds, etc.) • Setback and Height Violations
• Building Code Violations
• Illegal Conversions
Planning and Zoning Issues
• Setback and Height Violations
• Fence/Walls (height and location)
• Sign Regulations
• Nonconforming exterior lighting
• Construction or planting in the Town right of way
• Encroachment into open space, designated horse or pedestrian trails Nuisance Issues
• Noise Regulations
• Property Maintenance, public nuisances
Town of Portola Valley
Code Compliance Division
279
Section II: Code Compliance Services - 330
Revenues
41811 - Fines & Forfeitures – – – $5,000
REVENUES TOTAL – – – $5,000
Expenses
51011 - Salaries - Permanent $9,712 $3,541 $11,950 $32,087 51031 - Automobile Allowance $0 $0 $88 $150
55011 - Retirement - PERS $523 $0 $474 $2,544
55012 - Retirement - Soc Sec $519 $220 $741 $2,147
55013 - Medicare $143 $51 $173 $525
55021 - Health Insurance Medical $0 $0 $399 $616
55024 - Health Ins Dental & Vision $0 $0 $32 $277
55025 - Cafeteria Plan Mgmt $371 $0 $487 $4,173
55031 - Long Term Disability Insurance $0 $0 $12 $102
55033 - Workers Compensation $0 $0 $36 $96
62099 - Miscellaneous Consultants $23,016 $18,702 $25,170 $30,000 62305 - Software & Licensing – – – $1,748
EXPENSES TOTAL $34,284 $22,514 $39,562 $74,465
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
280
765 Portola Road
www.portolavalley.net
281
Section II - Planning & Building: 340 Customer Deposits Description
In order to efficiently process land-use applications, projects are required to provide deposits. These deposits are utilized by staff as a source to fund their hourly work and for other professional services. Unspent moneys are refunded to the applicant.

Section II: Customer Deposits - 340
Revenues
43041 - Applicant Charges $1,108,942 $504,129 $475,000 $900,000 REVENUES TOTAL $1,108,942 $504,129 $475,000 $900,000
Expenses
62033 - Attorney - Charges to Appls $66,437 $78,065 $50,000 $100,000 62036 - Geologist - Charges to Appls $107,357 $97,867 $125,000 $150,000 62038 - Engineer - Charges to Appls $143,774 $104,531 $120,000 $120,000 62041 - Planner - Charges to Appls $280,280 $392,797 $150,000 $450,000 62325 - C&D Deposit $6,042 $59,159 $30,000 $60,000
63012 - Deposit Refunds, Other Charges $139,100 $14,254 $0 $20,000 Town of Portola Valley
Customer Deposits
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
282
EXPENSES TOTAL $742,990 $746,673 $475,000 $900,000
765 Portola Road
www.portolavalley.net
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
283
Section II - Recreation Services: 410 Community Hall
Description
The Community Hall serves as one of the epicenters of Town Center life. Whether hosting resident life events, classes taught by able instructors, or for special meetings and gatherings of community-wide interest, the Community Hall stands as the Town's "go to" location for our most important experiences.

Section II: Community Hall - 410
Revenues
43121 - Class Fees $0 $67,549 $75,000 $140,000
43131 - Merchant Svcs Credit Card Fees $0 $0 $0 $2,000
43132 - Application Processing Fee – – – $5,000
44051 - Comm Hall & Acty Room Rents $0 $1,253 $1,030 $2,000 44052 - Comm Hall Private Party Fees $0 $12,908 $14,500 $20,000 46000 - Miscellaneous Revenue $0 $0 $600 $600
46049 - Miscellaneous Revenue – – $0 $600
REVENUES TOTAL $0 $81,709 $91,130 $170,200
Expenses
51011 - Salaries - Permanent – – $34,569 $71,814
Town of Portola Valley
Community Hall
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
284
55011 - Retirement - PERS – – $6,547 $13,587
55012 - Retirement - Soc Sec – – $2,143 $4,453
55013 - Medicare – – $501 $1,041
55021 - Health Insurance Medical – – $1,335 $4,004
55022 - Health Opt Out – – $1,080 $1,080
55024 - Health Ins Dental & Vision – – $628 $1,263
55025 - Cafeteria Plan Mgmt – – $2,170 $6,511
55031 - Long Term Disability Insurance – – $99 $185
55033 - Workers Compensation – – $1,314 $1,661
61051 - Community Hall Maintenance $31,285 $18,011 $25,000 $25,000 62305 - Software & Licensing $4,500 $4,500 $4,650 $5,125 62332 - Merchant Svcs Credit Card Fees $0 $0 $0 $2,700
63013 - Instructors & Class Refunds $42,538 $52,340 $60,000 $112,000 63104 - Event Insurance $0 $0 $1,030 $2,000
EXPENSES TOTAL $78,324 $74,850 $141,066 $252,424
765 Portola Road
www.portolavalley.net
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
285
Section II - Recreation Services: 420 Parks & Fields Operations Description
The Town's fields at Town Center, Rossotti and Ford Fields are available to organized sports leagues to hold their annual seasons.

Section II: Parks & Fields Maintenance - 420
Revenues
44054 - Field Rentals $57,401 $101,497 $64,000 $90,000
44057 - Court Rentals – – – $10,000
44058 - Parking Lot Rentals – – – $30,000
44056 - Zots to Tots $0 $5,520 $0 $0
REVENUES TOTAL $57,401 $107,017 $64,000 $130,000
Expenses
51011 - Salaries - Permanent – – $18,300 $20,286
55011 - Retirement - PERS – – $3,466 $3,838
55012 - Retirement - Soc Sec – – $1,135 $1,258
55013 - Medicare – – $265 $294
55022 - Health Opt Out – – $1,080 $1,080
55024 - Health Ins Dental & Vision – – $311 $311
Town of Portola Valley
Parks & Fields Operations
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
286
55031 - Long Term Disability Insurance – – $56 $56
55033 - Workers Compensation – – $1,215 $1,347
61055 - Parks & Fields Maintenance $66,692 $73,578 $90,000 $85,000 61056 - Portable Lavatories $6,347 $5,469 $7,000 $7,000 61058 - Courts Maintenance – – – $5,000
62305 - Software & Licensing – – $0 $700
EXPENSES TOTAL $73,038 $79,047 $122,828 $126,170
765 Portola Road
www.portolavalley.net
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
287
Section II - Public Works Department: 510 Public Works Division Section II: Public Works - 510
Revenues
41951 - Encroachment Permits $19,402 $25,414 $25,000 $45,000 42111 - State Gas Tax 2103 $0 $86,490 $41,877 $42,521
42112 - State Gas Tax 2105 $0 $58,151 $28,020 $28,509
42113 - State Gas Tax 2106 $0 $47,332 $22,499 $23,020
42114 - State Gas Tax 2107 $0 $77,451 $38,212 $38,103
42115 - State Gas Tax 2107.5 $0 $2,000 $1,000 $1,000
42121 - RMRA 2017 SB1 $91,598 $90,531 $114,968 $117,429 42131 - Measure A Sales Tax $208,245 $275,977 $0 $0
42132 - Measure M Sales Tax $298,645 $112,500 $18,000 $18,000 43254 - Applicant Development Fees $0 $0 $5,000 $5,000
43252 - Town Library Maintenance $0 $0 $10,000 $10,000
43253 - Town Engineer Fees $3,600 $0 $3,000 $5,000
44011 - Interest $0 $0 $14,500 $22,250
46039 - Miscellaneous Contributions $50,423 $64,743 $35,500 $78,000 46079 - Miscellaneous Receipts $0 $0 $1,000 $1,000
49011 - Operating Transfers In $0 $0 $133,691 $140,000
REVENUES TOTAL $671,913 $840,588 $492,267 $574,832
Expenses
51011 - Salaries - Permanent $333,435 $355,986 $395,401 $421,946 51031 - Automobile Allowance $2,250 $0 $3,000 $3,000
Town of Portola Valley
Public Works Division
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
288
55011 - Retirement - PERS $61,744 $32,039 $52,929 $56,627 55012 - Retirement - Soc Sec $16,370 $16,163 $23,033 $24,508 55013 - Medicare $5,007 $4,809 $5,733 $6,118
55021 - Health Insurance Medical $0 $8,887 $815 $815
55022 - Health Opt Out $15,900 $14,000 $14,640 $14,640
55024 - Health Ins Dental & Vision $0 $0 $5,728 $5,728
55025 - Cafeteria Plan Mgmt $14,288 $2,554 $16,693 $16,693 55031 - Long Term Disability Insurance $0 $0 $1,405 $1,405 55033 - Workers Compensation $0 $0 $26,255 $28,017
61011 - Public Road Surface & Drainage $15,036 $11,155 $25,000 $25,000 61012 - Street Sweeping $13,004 $8,100 $25,000 $12,000
61013 - Street Signs & Striping $1,680 $0 $10,000 $10,000 61014 - Trails Maintenance $17,150 $907 $57,200 $70,000 61015 - Storm Damage / Emerg Repairs $22,973 $0 $40,000 $40,000 61016 - ROW Tree Trimming & Mowing $52,891 $0 $62,600 $62,000 61017 - Litter Clean Up Program $14,951 $10,755 $18,000 $18,000 61018 - Repairs/Vandalism $0 $0 $5,000 $5,000
61021 - NPDES Stormwater Program $7,573 $7,279 $7,500 $7,500 61052 - Mechanical Sys Maint & Repair $6,064 $6,831 $17,500 $17,500 61053 - Library Maint Staff Support $0 $0 $0 $7,500
61054 - Janitorial Services $39,452 $35,745 $41,000 $41,000 61079 - Maintenance/Improvements $0 $0 $8,000 $8,000
61081 - Vehicle Maintenance $23,051 $7,199 $30,000 $20,000 62011 - Building Maint Equip & Supp $19,994 $27,089 $15,000 $25,000 62012 - Landscape Supplies & Services $8,032 $2,204 $25,000 $15,000 62014 - Tools & Equipment $5,584 $8,787 $7,100 $10,000
62022 - Utilities $0 $0 $0 $35,000
62037 - Engineer Services $39,631 $20,740 $65,000 $140,000 62044 - GIS Mapping $0 $0 $0 $4,100
62099 - Miscellaneous Consultants $11,360 $61,800 $15,000 $0 62305 - Software & Licensing $7,727 $2,730 $36,400 $14,464 65012 - Education & Training $0 $0 $0 $5,000
65014 - Dues $345 $175 $0 $0
EXPENSES TOTAL $755,492 $645,932 $1,055,932 $1,171,561
765 Portola Road
www.portolavalley.net
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
289
Section II - Non-Departmental: 610 Non-Departmental
Description
The Non-Departmental Department encompasses functions that are essential to the operation of the Town but do not fall within the jurisdiction of any single department or are expenditures of an organization-wide nature. Included are the City's major tax revenues, such as property tax, sales tax, and utility users’ tax. Interfund overhead reimbursements are also included.

The responsibility for monitoring and controlling these revenues and expenditures lies within the Division of the Town Manager.

Town of Portola Valley
Non-Departmental
290
Section II: Non-Departmental - 610
Revenues
40000 - Appropriated Fund Balance – – $0 $678,575
33333 - Appropriated Fund Balance $364,298 $0 $0 $0
41111 - Property Taxes - Secured $2,453,418 $1,790,441 $3,240,297 $3,437,509 41112 - Property Taxes - Unsecured $111,284 $126,919 $132,512 $142,512 41121 - ERAF Revenue $326,594 $337,152 $250,000 $350,000 41122 - VLF Revenue $494,056 $394,727 $450,000 $450,000 41141 - Real Property Transfer Tax $67,230 $180,657 $150,000 $200,000 41311 - Sales & Use Tax $272,992 $238,241 $350,000 $350,000 41411 - Business License Tax $0 $63,787 $125,000 $130,000 41601 - Energy Services $117,888 $0 $108,000 $133,000
41602 - Water Services $0 $59,143 $61,000 $65,000
41603 - Garbage Services $90,343 $114,498 $138,000 $140,000 41604 - Cable Services $3,971 $62,727 $98,000 $90,000
41811 - Fines & Forfeitures $1,204 $3,226 $2,000 $7,500 42173 - Bev Cont Recycle Program $0 $0 $5,000 $0
42811 - Motor Vehicle $5,483 $6,996 $5,500 $7,500
42821 - Homeowners Property Tax Relief $3,753 $3,682 $8,246 $8,066 43111 - UUT - Energy $550,055 $591,629 $640,000 $750,000 43112 - UUT - Telephone $26,535 $39,437 $30,000 $45,000 43113 - UUT - Water $239,367 $328,902 $275,000 $412,000 44011 - Interest $0 $776,266 $281,200 $306,200
44055 - Lease Income - Parking Lots $2,626 $2,629 $60,000 $7,000 46052 - Insurance Rebate Equity Return $0 $19,337 – –
46079 - Miscellaneous Receipts $1,635 $6,336 $2,000 $9,000 REVENUES TOTAL $5,132,733 $5,146,732 $6,411,755 $7,718,862 Expenses
55011 - Retirement - PERS $0 $21,924 $0 $194,952
55014 - Retirement - PERS Interest/Fee $0 $1,486 $0 $0
55021 - Health Insurance Medical $0 $9,208 $0 $11,500
55025 - Cafeteria Plan Mgmt $600 $1,800 $0 $0
55052 - Wellness Program $4,128 $2,215 $149,000 $12,000 62021 - Telephones $15,000 $22,992 $20,000 $30,600
62022 - Utilities $130,652 $121,860 $85,000 $125,000
62032 - Town Attorney $368,276 $198,079 $245,000 $0
62046 - IT & Website Consultants $69,986 $42,567 $67,000 $90,000 62099 - Miscellaneous Consultants $16,427 $3,572 $43,000 $30,000 62201 - HEART JPA $944 $0 $0 $0
62202 - Animal Control $37,664 $23,626 $21,000 $23,233
62206 - Emergency Services Council JPA $13,570 $0 $18,300 $20,813 62301 - Office Supplies $15,723 $9,631 $18,800 $15,000
62304 - Town Publications $4,515 $842 $600 $3,000
62305 - Software & Licensing $71,719 $94,165 $71,245 $95,477 62306 - Office Equipment $16,699 $2,751 $16,000 $8,000
62307 - Equipment Services Contracts $3,096 $13,072 $21,800 $6,000 62308 - Postage $2,185 $1,215 $10,000 $5,000
62309 - Advertising $15,325 $20,013 $8,500 $15,000
62327 - Community Services $20,587 $16,100 $25,000 $16,960 62331 - Bank Fees $178 $13,461 $10,000 $19,000
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
291
62399 - Miscellaneous $1,107,391 $10,498 $7,500 $7,500
63101 - Property Insurance $52,556 $57,648 $61,150 $54,928 63102 - Liability Insurance/Bonds $150,967 $164,296 $160,324 $225,605 63105 - Insurance - SIR – – $0 $75,000
65014 - Dues $22,771 $23,760 $30,000 $30,000
65015 - Mileage Reimbursement $0 $123 $0 $1,000
71011 - Land Acquisitions Expense $0 $4 – –
73011 - Fixed Assets - Software/Equip $0 $9,655 $0 $0
75111 - Transfer Out - Operating $0 $0 $133,691 $140,000 EXPENSES TOTAL $2,140,961 $886,563 $1,222,910 $1,255,568 765 Portola Road
www.portolavalley.net
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
292
Section II - Non-Departmental: 620 Road Maintenance District Description
Five active districts created in Portola Valley to support the maintenance of privately-held roads:

Crescent Road Maintenance District
Portola Valley Ranch Maintenance District
Wayside I & II Road Maintenance Districts
Woodside Highlands Road Maintenance District
Each district collects taxes for road maintenance purposes, and manages and conducts such work.

Section II: Road Maintenance Districts - 620
Revenues
41131 - Assessment Revenue $128,012 $89,234 $106,044 $143,000 44011 - Interest $0 $0 $36,600 $30,300
REVENUES TOTAL $128,012 $89,234 $142,644 $173,300
Expenses
62311 - General Expenses $87,163 $147,347 $50,097 $173,300 EXPENSES TOTAL $87,163 $147,347 $50,097 $173,300
765 Portola Road
www.portolavalley.net
Town of Portola Valley
Road Maintenance Districts
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
293
Section III - Capital Projects: Department 700
Description
The Capital Improvement Program is a five-year plan that provides guidance to the Town Council, Town staff, and the community about the capital improvements and purchases that will/could be undertaken over the next five-year period. The Capital Improvement Program is a living document that will be revisited and revised at least annually as the Town plans its improvements.

Town of Portola Valley
FY 2026-27 Capital Projects
294
Section III: Roads & Right of Way - 710
Revenues
40000 - Appropriated Fund Balance – – $0 $176,903
42131 - Measure A Sales Tax $0 $0 $387,630 $387,630
42132 - Measure M Sales Tax $0 $0 $57,000 $57,000
42133 - Measure W Sales Tax $119,474 $122,541 $169,745 $169,745 42799 - Misc Grants $1,102 $0 $0 $0
44011 - Interest $0 $0 $33,500 $76,500
46038 - Capital Grants $0 $0 $146,718 $0
REVENUES TOTAL $120,576 $122,541 $794,593 $867,778
Expenses
74011 - Infrastructure Improve Exp $43,211 $97,900 $1,108,860 $985,559 EXPENSES TOTAL $43,211 $97,900 $1,108,860 $985,559
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
295
296
297
Section III: Parks & Fields - 720
Expenses
72011 - Facilities Structures Expense $10,840 $0 $0 $0
EXPENSES TOTAL $10,840 $0 $0 $0
Section III: Open Space - 725
Revenues
40000 - Appropriated Fund Balance – – $0 $43,003
43111 - UUT - Energy $213,037 $214,939 $240,000 $295,000 43112 - UUT - Telephone $10,756 $34,925 $11,000 $18,000 43113 - UUT - Water $102,268 $105,170 $110,000 $162,000 44011 - Interest $0 $0 $280,000 $431,300
REVENUES TOTAL $326,060 $355,034 $641,000 $949,303
Expenses
62099 - Miscellaneous Consultants – – $0 $10,000
74011 - Infrastructure Improve Exp $2,958 $4,650 $15,000 $58,003 EXPENSES TOTAL $2,958 $4,650 $15,000 $68,003
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
298
Section III: Buildings & Facilities - 730
Revenues
42799 - Misc Grants – – $0 $64,415
46038 - Capital Grants – – – $317,000
REVENUES TOTAL $0 $0 $0 $381,415
Expenses
62011 - Building Maint Equip & Supp $0 $222 $0 $0
72011 - Facilities Structures Expense $13,649 $7,825 $0 $381,415 73011 - Fixed Assets - Software/Equip $8,324 $26,141 $0 $0 EXPENSES TOTAL $21,973 $34,187 $0 $381,415
FY 26-27 PROPOSED BUDGET
FY2024 FY2025 FY2026 FY2027
299
300
765 Portola Road
www.portolavalley.net
301
Adopted Budget: The budget that is finally adopted by the Town Council in September after the prior Fiscal Year's audit has been completed and actuals from the ACFR can be incorporated. Also, following the assessment of any impacts of the state budget once adopted would be included in the Town Budget.

Annual Comprehensive Financial Report (ACFR): The culmination of all budgeting and accounting activities engaged in by management during the prior year, covering all funds of the Town, its component units, and its financial transactions.

Appropriation: An expenditure authorization granted by the Town Council from a specific fund and a specific budget unit. Appropriation authority is granted at the object level, including Salaries and Benefits, Services and Supplies, Fixed Assets, Transfers out and other expense categories.

Balanced Budget: A budget where Total Sources, including Fund Balance, equal Total Requirements, including Reserves and Contingencies, for each appropriated fund.

BSA Fee: A State Building Permit Fee regulated by the California Building Standards Administration (Commission).

Budget: An itemized summary of probable expenditures and income for a given period.

Budget Unit: : A distinct fiscal and organizational entity within the Town budget which has a mission and/or funding source sufficiently unique to require a separate legal appropriation from the Town Council. Budget units are generally at the department or major division level of an organization.

California Public Employees' Retirement System (CalPERS): Agency in the state of California that manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families.

Capital Improvement Plan (CIP): A multi-year tool to plan for upcoming one-time expenditures.

Chart of Accounts: A list of account numbers and names which provide the organizing framework for budgeting, recording, and reporting on all financial transactions. The Chart of Accounts is comprised of sub-accounts (the level at which transactions are posted), account groups (a roll-up of related sub- accounts) and objects (major categories of revenues and expenditures as defined by the State Controller’s guideline and the account level at which the council approves the budget).

Citizen's Option for Public Safety (COPS): State funds to support a variety of law enforcement needs.

Construction and Demolition Debris Deposit (C&D Deposit): A refundable deposit to ensure that the materials related to a construction/demolition project are properly disposed.

Decomposed Granite (DG): Used for baseball infields, planned project within the CIP Division of the State Architect (DSA Fee): A fee associated with the State department and projects that use its services.

Education Revenue Augmentation Fund (ERAF): In FY 1992-93 and FY 1993-94, in response to serious budgetary shortfalls, the State Legislature and administration permanently redirected over $3 billion of property taxes from cities, counties, and special districts to schools and community college districts. These redirected funds reduced the state’s funding obligation for K-14 school districts by a commensurate amount. ERAF is the fund into which redirected property taxes are deposited in each county. In FY 1996-97, cities, counties, and special districts deposited about $3.4 billion of property taxes into ERAF. The amount of required ERAF contributions grows annually along with property tax growth rate. To mitigate the ongoing impact of the FY 1993-94 property tax shift, the Legislature proposed, and the voters approved, Proposition 172. This measure provides counties and cities with a share of a half-cent sales tax for public safety purposes.

EnerGov: The Town's permit tracking software system.

Expenditure: Decreases in net financial resources. Expenditures include current operating expenses requiring the present or future use of net current assets, debt service and capital outlays, intergovernmental grants, entitlements, and shared revenues.

Fiscal Year (FY): A 12-month accounting period which differs from the calendar year. For the Town of Portola Valley, the fiscal year runs July 1 through the following June

30. During the fiscal year, revenues are realized, obligations are incurred, encumbrances are made, and appropriations are expended.

Fixed/Capital Assets: Long-lived tangible assets (over the value of $5,000) obtained or controlled as a result of past transactions, events, or circumstances. Fixed/capital assets include buildings, equipment, and improvements other than buildings and land. In the private sector, these assets are referred to most often as property, plant, and equipment. The terms fixed assets and capital assets are used interchangeably throughout the budget.

Full-Time Equivalent (FTE): This represents the budgeted number of full-time equivalent staffing. A full-time equivalent position is equal to 2,080 hours a year (40 hours per week times 52 weeks).

Town of Portola Valley, California
Glossary
302
Fund: A fiscal and accounting entity with a self-balancing set of accounts in which cash and other financial resources, all related liabilities and residual equities, or balances, and changes therein, are recorded and segregated to carry on specific activities or attain certain objectives in accordance with special regulations, restrictions, or limitations.

Fund Balance: The resources remaining from prior years that are available to be budgeted in the current year. It is also the difference between fund assets and fund liabilities remaining at year-end. For budgetary purposes, Fund Balance represents the sum of over-realized or unanticipated revenues and unspent appropriations or reserves at the end of each fiscal year.

General Fund: The major County operating fund used to account for all financial sources and uses, except those required to be accounted for in another fund.

Graphical Information System (GIS): A technological field that incorporates geographical features with tabular data in order to map, analyze, and assess real-world problems.

Housing Endowment and Regional Trust of San Mateo County Joint Powers Authority (HEART JPA): A housing trust fund for San Mateo County Joint Powers Authority (JPA): An entity whereby two or more public authorities (e.g., a city and county government or a utility district and a transportation district) can operate collectively, share a common power and implement shared programs or services.

Maintenance of Effort (MOE): A statutory obligation to provide a minimum amount of funding or other effort toward a specific program area or budget.

National Pollutant Discharge Elimination System (NPDES): The Clean Water Act prohibits anybody from discharging "pollutants" through a "point source" into a "water of the United States" unless they have an NPDES permit. The permit will contain limits on what you can discharge, monitoring and reporting requirements, and other provisions to ensure that the discharge does not hurt water quality or people's health. In essence, the permit translates general requirements of the Clean Water Act into specific provisions tailored to the operations of each person discharging pollutants.

One Bay Area Grant (OBAG2): A program that distributes funds from the Metropolitan Transportation Commission and the Federal Highway Administration to local jurisdictions.

Other Post-Employee Benefits (OPEB): Non-pension benefits provided to employees after their retirement.

Proposition 172 (Public Safety Augmentation Fund): Common name for the half-cent Public Safety Sales Tax authorized by the voters in 1993; this revenue source provides funding for criminal justice and public safety expenditures.

Recommended Budget: The Recommended Budget is submitted for approval by the Town Manager to the Town Council in June of each year. Public hearings are held on the budget in June prior to the beginning of the new fiscal year on July 1. The Recommended Budget may include reductions to meet budget targets or address revenue changes, as well as specific additional funding for proposed projects, activities, or purchases.

Reserves: Those portions of fund balance that are not appropriated for expenditure or legally segregated for a specific purpose. Reserves are not appropriated for designated expenditures and require Council approval to be transferred into appropriations such as Salaries and Benefits, Services and Supplies, or Fixed Assets.

Revenue: Source of income to an operation from any funding source other than Fund Balance.

Road Maintenance and Rehabilitation Program (RMRA): A 2017 State fund to support deferred maintenance on local roads and streets.

Right of Way (ROW): Land owned by the Town used for various purposes, including; roads, trails or those properties adjacent to roads.

Salaries and Benefits: An object level of expenditure reflecting the County’s compensation costs for employees. Salaries includes all types of cost attributable to personnel services of full-time, part-time, temporary, and extra-help employees, including overtime, vacation pay, sick leave pay, and various types of premium pay. Benefits include the County’s share of the costs for health, dental, life insurance, retirement, social security, and workers’ compensation.

Special Funds: Funds used to account for proceeds from specific revenue sources that are legally restricted as to how the revenues may be spent.

Strong Motion Instrumentation Program (SMIP Fee): A fee charged by the Town to support the acquisition of earthquake data.

Total Requirements: Reflects all expenditure appropriations, Intrafund Transfers, and Reserves.

Total Sources: Reflects all revenues and Fund Balance utilized to finance expenditure needs.

Use of Money and Property: Revenue account that contains funds received from interest, rent payments, or proceeds from the sale of property.

Utility Users' Tax (UUT): A town tax on the consumption of utilities such as; Telephone, Water, and Garbage.

Vehicle License Fee (VLF): A State fee on vehicle registration.

Woodside Fire Protection District (WFPD): The Special District, with its own governance structure, that provides fire services for Portola Valley.

Useful Resources on Local Finance
Understanding the Basics of Municipal Revenues in California: Cities, Counties and Special Districts – Institute for Local Government A Primer on California City Revenues, Part One: Revenue Basics – Western City Magazine, 2016 303
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What are reserves?
Reserves are resources set aside to provide a buffer against risk.

Does the Town have multiple general fund assignments for reserves? Yes. In addition to unassigned, the Town assigns funds, based on accounting or policy, to the following needs: Unfunded Pension Liabilities, Equipment Replacement, Capital Replacement/Emergency, Legal Contingency, and Unfunded Retiree Medical Other Post-Employee Benefits.

What is fund balance?
Fund Balance is the net position of government funds calculated with generally accepted accounting principles (GAAP), calculated on a budgetary basis.

Does the Town have a minimum fund balance policy for the General Fund? Yes. The Government Finance Officers’ Association (GFOA) recommends that a minimum General Fund reserve of 5% to 15% of operating revenues or one to two months of operating expenditures (8-17%) be maintained. In a 2007 survey performed by the GFOA, most of the participating cities had a minimum or target between 10% and 30%.

The Town's minimum fund balance reserve is set at 20% of operating expenditures.

What is the General Fund?
The General Fund is the Town's main operating fund and is the repository of those moneys that can be used in an unrestricted fashion.

How are the terms “reserves” and “fund balance” used when included in the annual budget process? The Town utilizes a balanced budget model, which means that if either sources (revenues) or requirements (expenditures) do not equal each other, fund balance is appropriated on the sources side of the ledger, and reserves are allocated on the requirement side of the ledger.

What is an operating transfer?
An operating transfer is the movement of funds, as needed, to support either revenue or expenditure needs 765 Portola Road
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Town of Portola Valley, California
Reserves and Fund Balance FAQ's
305
Town of Portola Valley, California
General Fund Minimum Fund Balance
Policy
306
307
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Town of Portola Valley, California
Investment Policy
309
310
311
765 Portola Road
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Town of Portola Valley, California
Donation and Gift Acceptance Policy
313
314
315
316
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317
______________________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Anthony McFarlane, Assistant Town Manager
DATE: June 24, 2026
RE: Consider a Resolution Establishing the FY 2026-27 Appropriations Limit

RECOMMENDATION
Staff recommends that the Town Council adopt a resolution establishing the Gann Appropriations Limit of $5,900,709 for Fiscal Year 2026-27.

BACKGROUND
California Proposition 4 (1979), also known as the Gann Limit, was approved by voters with the goal of keeping state and local government spending, capped at 1978-79 levels, allowing for adjustments using specified growth factors such as changes in population and inflation. California Proposition 111 (1990) amended the calculation to start with actual appropriations in Fiscal Year 1986-87.

DISCUSSION
Each year, local agencies must adjust its Appropriation Limit by two factors, the change in the cost of living and the change in population. Local agencies can select the change in per capita income, or the change in nonresidential new construction for the cost-of-living factor. For the population factor, local agencies can select either the change in Town population or County population. The California Department of Finance is required to provide an estimate of the change in per capita income and changes in population for town and county each year. The change in nonresidential new construction is provided by the County Assessor’s office.

Appropriations subject to the limit include proceeds from taxes, any money received from the state for unrestricted purposes, and interest earned from the investment of taxes.

Revenues excluded from the limit calculation include user fees. Other exclusions to the limit calculation are costs related to debt service, qualified capital outlay, court orders, or federal mandates.

TOWN OF PORTOLA VALLEY

STAFF REPORT

TOWN OF PORTOLA VALLEY
318
Report & attachments published by June 21, 2026 7:00 p.m.

Fiscal Year 2026-27 Gann Appropriations Limit June 24, 2026

CALCULATION
Using the Fiscal Year 2026-27 Proposed Budget 4, the Town’s Appropriation Limit is $5,896,5777.

Price Factor
Change in Per Capita Income (CPI) 4.95
Change in nonresidential new construction 1.99
Population Factor
Change in population – Portola Valley -0.07
Change in population – San Mateo County -0.03
Selecting the change in per capita income (4.95%) and the change in county population (0.00%) are the most favorable to the town. Using these factors, the combined adjustment factor for Fiscal Year 2025-26 is 1.05.

Adjustment Factor
Change in County Population 1.0300
Change in Per Capita Income (CPI) 1.0495
Combined Adjustment Factor 1.0490
Applying the combined adjustment factor of 1.05 to the Fiscal Year 2025-26 limit of $5,624,087, the Town’s Fiscal Year 2026-27 Limit is $5,900,709.

Utilizing the Appropriations Limit worksheets compiled by Michael Coleman with the League of California Cities and the Fiscal Year 2026-27 revised budget, the total appropriations subject to the Limit is $5,265,221.

ENVIRONMENTAL IMPACT
The recommended Town Council action to establish the Fiscal Year 2026 Appropriations Limit is not considered a “project” under the California Environmental Quality Act (CEQA) Guidelines and is therefore exempt from CEQA requirements. As provided by CEQA Guidelines Section 15378(b)(5), a “project” does not include “organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” Adoption of the resolution is therefore exempt from CEQA and no further environmental analysis is required.

FISCAL IMPACT
There is no fiscal impact by adopting the resolution establishing the Fiscal Year 2026-27 Appropriations Limit.
319

Fiscal Year 2026-27 Gann Appropriations Limit June 24, 2026

ATTACHMENT

1. Resolution

2. FY 2026-27 Department of Finance Price Factor and Population Memo

3. Gann Limit Calculation Worksheets
320
1 RESOLUTION NO. ______-2026

RESOLUTION OF THE TOWN COUNCIL OF THE

TOWN OF PORTOLA VALLEY ESTABLISHING THE APPROPRIATION LIMIT FOR FISCAL YEAR 2026-2027 PURSUANT TO ARTICLE XIII.B OF THE CALIFORNIA

CONSTITUTION
WHEREAS, the Town is required to adjust the Appropriation Limit annually pursuant to Article XIII.B of the State Constitution
WHEREAS, the limit can be adjusted annually by the change in cost of living and change in population factors provided by the Department of Finance, and; WHEREAS, using the change in county population -0.03 and change in per capita income of 4.95 are the most favorable factors to the Town, and; WHEREAS, the total annual appropriations subject to the limit has been calculated by the Assistant Town Manager in accordance with Article XIII.B and Government Code Section 7902, and;
WHEREAS, the annual appropriation limit for Fiscal Year 2026-27 is $5,900,709.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Portola Valley that the Fiscal Year 2026-27 Annual Appropriation Limit has been determined to be $5,900,709.

PASSED AND ADOPTED this 24th day of June 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By: _______________________________
Craig Taylor, Mayor
ATTEST:
_________________________
Veronica Dao, Town Clerk
321
322
323
California Department of Finance
Demographic Research Unit
Population Data for Price and Population Letter
Population and Excluded Population for January 1, 2025 and January 1, 2026 Released: May 1, 2026
Table of Contents (links to internal worksheets)
Example Page with Price Factor
Population Data by Jurisdiction
Population Data by County
For more information about the population estimates:
https://dof.ca.gov/forecasting/demographics/estimates-e1/ Data Prepared by:

Demographic Research Unit
California Department of Finance
email: [email protected]
phone: (916) 323-4086
324
About the Data
May 2026
Attachment A
A. Price Factor. Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2026-27 appropriation limit is:

Per Capita Personal Income
Fiscal Year Percentage Change (FY) over prior year
2026-27 4.95
B. Appropriation Limit Calculation Example. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2026-27 appropriation limit. 2026-27:

Per Capita Cost of Living Change = 4.95 percent
Population Change = -0.14 percent
Per Capita Cost of Living converted to a ratio: (4.95 + 100) ÷ 100 = 1.0495 Population converted to a ratio: (-0.14 + 100) ÷ 100 = 0.9986 Calculation of factor for FY 2026-27: 1.0495 x 0.9986 = 1.0480 325
About the Data
FISCAL YEAR 2026-27
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2025 to January 1, 2026, and Total Population January 1, 2026 City County Percent Change 25-26 Population Minus Exclusions 1-1-25 Population Minus Exclusions 1-1-26 Total Population 1-1-26 Atherton San Mateo 1.06 7,012 7,086 7,086
Belmont San Mateo -0.40 28,243 28,129 28,129
Brisbane San Mateo -0.34 4,678 4,662 4,662
Burlingame San Mateo 2.76 31,568 32,438 32,438
Colma San Mateo -0.35 1,410 1,405 1,405
Daly City San Mateo -0.31 102,215 101,898 101,898
East Palo Alto San Mateo 1.08 29,148 29,462 29,462
Foster City San Mateo -0.56 32,547 32,364 32,364
Half Moon Bay San Mateo 0.86 11,309 11,406 11,406
Hillsborough San Mateo -0.46 11,301 11,249 11,249
Menlo Park San Mateo 1.41 33,190 33,657 33,785
Millbrae San Mateo -0.47 23,171 23,062 23,062
Pacifica San Mateo -0.46 37,241 37,068 37,073
Portola Valley San Mateo -0.07 4,328 4,325 4,325
Redwood City San Mateo -0.37 82,109 81,809 81,809
San Bruno San Mateo -0.37 42,567 42,411 42,411
San Carlos San Mateo -0.38 29,362 29,249 29,249
San Mateo San Mateo -0.33 104,361 104,020 104,020
South San Francisco San Mateo -0.29 65,431 65,239 65,239 Woodside San Mateo 0.35 5,206 5,224 5,224
Unincorporated San Mateo 0.02 61,874 61,886 61,886
Incorporated San Mateo -0.03 686,397 686,163 686,296
County Total San Mateo -0.03 748,271 748,049 748,182
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 326
About the Data
FISCAL YEAR 2026-27
Attachment C
Annual Percent Change in Population Minus Exclusions*
January 1, 2025 to January 1, 2026, and Total Population January 1, 2026 City County Percent Change 25-26 Population Minus Exclusions 1-1-25 Population Minus Exclusions 1-1-26 Total Population 1-1-26 Incorporated San Mateo -0.03 686,397 686,163 686,296
County Total San Mateo -0.03 748,271 748,049 748,182
*Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. 327
1 City Portola Valley FY 2026-27
a b c
Revenue Source Proceeds of Taxes Non-Proceeds of Taxes Total Taxes
Property Tax 4,523,021 4,523,021
Sales and Use Tax 350,000 350,000
Transactions and Use Tax - -
Business License Tax 130,000 130,000
Utility Users Tax 1,682,000 1,682,000
Transient Occupancy Tax - -
Documentary or Real Property Transfer Taxes 200,000 200,000 Parcel Taxes - -
Other Taxes - -
Fees From Worksheet #2 => - - -
Benefit Assessments - -
Franchises (Cable/Video, Solid Waste, Energy, etc) 428,000 428,000 Fines, Forfeitures, and Penalties 12,500 12,500
Rents, Royalties, and Concessions 7,000 7,000
Gifts 374,500 374,500
Licenses and Permits
Include regulatory licenses and permits as regulatory fees in Worksheet 2.

Include public property, facility or equipment rental licenses/premits in "rents" above Include business license taxes in "taxes" above.

From State
Motor Vehicle License Fee 7,500 7,500
Homeowners Property Tax Relief Reimb - -
Williamson Act - -
Motor Vehicle Fuel (gasoline) Tax 133,153 133,153
Proposition 42 Gasoline Sales Tax 117,429 117,429
Citizens Option for Public Safety (COPS) 195,000 195,000 Proposition 172 Public Safety Sales Tax 18,000 18,000
State Mandate Reimbursements -
Other discretionary state grants and aid -
Other non-discretionary state grants and aid - -
Repealed Subventions
Criminal Justice Fee (Booking Fee) Relief -
Discretionary Local Assistance (1999-00, 2000-01) -
Police Tachnology Grants (CLEEP) -
Liquor License Fees -
Highway Carriers Uniform Business Tax -
Financial Aid to Local Agencies -
Business Inventory Exemption Reimbursement -
Trailer Coach / Mobile Home VLF -
1978 -79 Bailout Funds -
Other Governments
Federal General Revenue Sharing -
Federal CDBG -
Housing (HUD) -
Disaster Reimbursement -
Other 468,015 468,015
Other Miscellaneous
Sale of property (See "qualified Capital Outlays") -
Interfund Transfers - 140,000 140,000
1 Sub-Total non-interest revenues 6,892,521 1,893,597 8,786,118 2 Interest Earnings - 1,024,250 1,024,250
3 Reserve Withdrawals -
4 Total 6,892,521 2,917,847 9,810,368
8,786,118
©2016 Michael Coleman. Use with attribution.

Worksheet #1
Proceeds of Taxes
Total revenue plus reserve withdrawals (1C + 3C)
328
City FY 2026-27
a i ii b=i+ii c=b-a d
Program Area Fee Revenue Direct Costs
Allocated
Overhead Total Costs
Costs minus
Revenues
Revs >
Costs?
C=negative
1 - 4,040,348 4,040,348 4,040,348 -
2 - 2,616,486 2,616,486 2,616,486 -
3 739,641 2,768,775 2,768,775 2,029,134 -
4 442,200 1,301,243 1,301,243 859,043 -
5 1,265,000 1,281,685 1,281,685 16,685 -
6 318,000 378,594 378,594 60,594 -
7 - - - - -
8 - - - - -
9 - - - - -
10 - - - - -
11 - - -
12 - - -
13 - - -
14 - - -
15 - - -
16 Proceeds of Taxes => -
= sum of column d
Non-Proceeds of taxes => 2,764,841
©2016 Michael Coleman. Use with attribution. =sum of column a minus d16 Police - Law Enforcement
Transportation - Public Works
Planning and Development
Building, Construction and Fire Safety
Parks and Recreation, museums, etc.

Water
Sewer
Solid Waste
Other
General Gov't - Management/Support
Worksheet #2
Regulatory Fees, User Fees & Charges
Portola Valley
329
City FY 2026-27
Amount
Court Orders
sub-total -
Federal Mandates
135,323
34,763
sub-total 170,086
Qualified Capital Outlay
985,559
446,192
25,463
sub-total 1,457,214
Qualified Debt Service
sub-total -
Total Exclusions 1,627,300
©2016 Michael Coleman. Use with attribution.

Street Resurfacing
Facility Improvements
Open Space Improvements
ACA Mandate
Social Security/Medicare
Worksheet #3
Excluded Appropriations
Portola Valley
330
4 City FY 2026-27
Amount
a) Non-interest Tax Proceeds 6,892,521
b) Minus Exclusions 1,627,300
c) Net invested proceeds from taxes 5,265,221
d) Total revenue plus reserve withdrawls 8,786,118
e) Proceeds of taxes as a percentage of revenues 0.59926591 f) Interest earnings - Total 1,024,250
g) Amount of interest earned from "proceeds of taxes" 613,798 ©2016 Michael Coleman. Use with attribution.
e * f
c / d
Worksheet #4
Interest Allocation
Portola Valley
Source
from Worksheet #1
from Worksheet #3
a-b
from Worksheet #1
331
5 City
For
Fiscal Year Jan 1
City
Population
Countywide
Population Jan 1
City
Population
Countywide
Population
City %
Change
County %
Change
1986-87 1985 4,020 614,400 1986 4,070 618,600 1.2% 0.7% 1987-88 1986 4,070 618,600 1987 4,150 622,600 2.0% 0.6% 1988-89 1987 4,150 622,600 1988 4,170 629,800 0.5% 1.2% 1989-90 1988 4,170 629,800 1989 4,220 638,300 1.2% 1.3% 1990-91 1989 4,220 638,300 1990 4,210 647,400 -0.2% 1.4% 1991-92 1990 4,210 647,400 1991 4,125 651,093 -2.0% 0.6% 1992-93 1991 4,125 651,093 1992 4,141 657,980 0.4% 1.1% 1993-94 1992 4,141 657,980 1993 4,184 664,394 1.0% 1.0% 1994-95 1993 4,184 664,394 1994 4,235 668,711 1.2% 0.6% 1995-96 1994 4,235 668,711 1995 4,289 673,274 1.3% 0.7% 1996-97 1995 4,289 673,274 1996 4,312 677,926 0.5% 0.7% 1997-98 1996 4,312 677,926 1997 4,359 685,153 1.1% 1.1% 1998-99 1997 4,359 685,153 1998 4,393 693,089 0.8% 1.2% 1999-00 1998 4,393 693,089 1999 4,595 724,367 4.6% 4.5% 2000-01 1999 4,595 724,367 2000 4,622 730,029 0.6% 0.8% 2001-02 2000 4,622 730,029 2001 4,505 720,147 -2.5% -1.4% 2002-03 2001 4,505 720,147 2002 4,505 720,147 0.0% 0.0% 2003-04 2002 4,505 720,147 2003 4,507 717,006 0.0% -0.4% 2004-05 2003 4,507 717,006 2004 4,494 717,041 -0.3% 0.0% 2005-06 2004 4,494 717,041 2005 4,483 712,386 -0.2% -0.6% 2006-07 2005 4,483 712,386 2006 4,538 723,453 1.2% 1.6% 2007-08 2006 4,538 723,453 2007 4,553 724,104 0.3% 0.1% 2008-09 2007 4,553 724,104 2008 4,618 733,386 1.4% 1.3% 2009-10 2008 4,618 733,386 2009 4,639 739,171 0.5% 0.8% 2010-11 2009 4,639 739,171 2010 4,671 745,563 0.7% 0.9% 2011-12 2010 4,671 745,563 2011 4,725 754,061 1.2% 1.1% 2012-13 2011 4,725 754,061 2012 4,391 724,452 -7.1% -3.9% 2013-14 2012 4,391 724,452 2013 4,411 729,196 0.5% 0.7% 2014-15 2013 4,411 729,196 2014 4,448 735,484 0.8% 0.9% 2015-16 2014 4,448 735,484 2015 4,480 745,051 0.7% 1.3% 2016-17 2015 4,480 745,051 2016 4,527 752,978 1.0% 1.1% 2017-18 2016 4,527 752,978 2017 4,751 765,894 4.9% 1.7% 2018-19 2017 4,751 765,894 2018 4,707 770,063 -0.9% 0.5% 2019-20 2018 4,707 770,063 2019 4,767 773,994 1.3% 0.5% 2020-21 2019 4,767 773,994 2020 4,659 774,350 -2.3% 0.0% 2021-22 2020 4,659 774,350 2021 4,607 773,108 -1.1% -0.2% 2022-23 2021 4,607 773,108 2022 4,560 765,245 -1.0% -1.0% 2023-24 2022 4,560 765,245 2023 4,283 744,552 -6.1% -2.7% 2024-25 2023 4,283 744,552 2024 4,249 741,565 -0.8% -0.4% 2025-26 2024 4,286 747,647 2025 4,328 748,271 0.98% 0.08% 2026-27 2025 4,328 748,271 2026 4,325 748,049 -0.07% -0.03% Select highest population factor for the year (column e or f) to Worksheet 7 ©2016 Michael Coleman. Use with attribution.

Worksheet #5
Population Changes
Portola Valley
332
6 City
a b c d
NRAV ARpy = b ÷ c
Factors for
Fiscal Year published
Dollar Value
of New
Nonresidential
Construction in the
jurisdiction from …
Total
secured and
unsecured
assessment roll
in the jurisdiction for …
Source: County
Assessor
Source: County
Assessor
1987-88 3.47% May 1, 1987 1986 to 1987 1986
1988-89 4.66% May 1, 1988 1987 to 1988 1987
1989-90 5.19% May 1, 1989 1988 to 1989 1988
1990-91 4.21% May 1, 1990 1989 to 1990 1989
1991-92 4.14% May 1, 1991 1990 to 1991 1990
1992-93 -0.64% May 1, 1992 1991 to 1992 1991
1993-94 2.72% May 1, 1993 1992 to 1993 1992
1994-95 0.71% May 1, 1994 1993 to 1994 1993
1995-96 4.72% May 1, 1995 1994 to 1995 1994
1996-97 4.67% May 1, 1996 1995 to 1996 1995
1997-98 4.67% May 1, 1997 1996 to 1997 1996
1998-99 4.15% May 1, 1998 1997 to 1998 1997
1999-00 4.53% May 1, 1999 1998 to 1999 1998
2000-01 4.91% May 1, 2000 1999 to 2000 1999
2001-02 7.82% May 1, 2001 2000 to 2001 2000
2002-03 -1.27% May 1, 2002 2001 to 2002 2001
2003-04 2.31% May 1, 2003 2,063,840 2002 to 2003 90,651,266 2002 2.28% 2004-05 3.28% May 1, 2004 4,285,343 2003 to 2004 108,615,841 2003 3.95% 2005-06 5.26% May 1, 2005 493,832 2004 to 2005 138,069,341 2004 0.36% 2006-07 3.96% May 1, 2006 3,886,174 2005 to 2006 159,483,799 2005 2.44% 2007-08 4.42% May 1, 2007 13,986,860 2006 to 2007 107,600,117 2006 13.00% 2008-09 4.29% May 1, 2008 9,718,164 2007 to 2008 159,244,460 2007 6.10% 2009-10 0.62% May 1, 2009 4,436,230 2008 to 2009 91,708,256 2008 4.84% 2010-11 -2.54% May 1, 2010 718,758 2009 to 2010 25,165,774 2009 2.86% 2011-12 2.51% May 1, 2011 1,194,721 2010 to 2011 43,395,199 2010 2.75% 2012-13 3.77% May 1, 2012 547,657 2011 to 2012 125,185,605 2011 0.44% 2013-14 5.12% May 1, 2013 840,635 2012 to 2013 155,344,454 2012 0.54% 2014-15 -0.23% May 1, 2014 3,258,495 2013 to 2014 146,896,141 2013 2.22% 2015-16 3.82% May 1, 2015 1,648,134 2014 to 2015 202,529,131 2014 0.81% 2016-17 5.37% May 1, 2016 8,111,684 2015 to 2016 136,120,621 2015 5.96% 2017-18 3.69% May 1, 2017 1,102,713 2016 to 2017 189,661,534 2016 0.58% 2018-19 3.67% May 1, 2018 15,121,338 2017 to 2018 185,989,997 2017 8.13% 2019-20 3.85% May 1, 2019 5,882,370 2018 to 2019 203,120,876 2018 2.90% 2020-21 3.73% May 1, 2020 13,438,739 2019 to 2020 190,094,332 2019 7.07% 2021-22 5.73% May 1, 2021 4,779,669 2020 to 2021 212,702,163 2020 2.25% 2022-23 7.55% May 1, 2022 6,315,003 2021 to 2022 252,921,622 2021 2.50% 2023-24 4.44% May 1, 2023 4,765,697 2022 to 2023 236,374,746 2022 2.02% 2024-25 3.62% May 1, 2024 4,775,583 2023 to 2024 247,428,806 2023 1.93% 2025-26 6.44% May 1, 2025 7,763,705 2024 to 2025 211,017,128 2024 3.68% 2026-27 4.95% May 1, 2026 5,383,665 2025 to 2026 271,011,695 2025 1.99% ©2016 Michael Coleman. Use with attribution.

Worksheet #6
Cost of Living Adjustment Factors
Portola Valley
Percentage
Change in
Per Capita
Personal
Income
Change in
assessment roll
due to addition of
local nonresidential
Source: Calif Dept of Finance new construction
333
7 City FY 2026-27
Amount
a) Prior Year Appropriations Limit 5,624,087
b) Adjustment Factors percent ratio
1) Population Change -0.03% 1.000
Population in city or county? county
2) Cost of Living 4.95% 1.050
State CPI or % New non-residential? CPI
3) Combined adjustment factor 1.049
c) Adjusted Limit 5,900,709
d) Alterations
Transfer of Financial Responsibility
Transfer to Fees
Emergency
Voter Override
Total Alterations -
e) Appropriations Limit - Current Year 5,900,709
©2016 Michael Coleman. Use with attribution.

Select from Worksheet 5
"city" or "county"
Select from Worksheet 6
"CPI" or "%new non-resid AV"
b1 * b2
a * b3
sum of d
c + d
Worksheet #7
Appropriations Limit
Portola Valley
Source
Prior year schedules
334
8 City FY 2026-27
Amount
a) Proceeds of Taxes 6,892,521
b) Exclusions 1,627,300
c) Appropriations Subject to Limitation 5,265,221
d) Appropriations Limit (current year) 5,900,709
e) Under (Over) Limit 635,488
©2016 Michael Coleman. Use with attribution.
d-c
Worksheet #3
a-b
Worksheet #7
Worksheet #1
Worksheet #8
Appropriations Subject to Limitation
Portola Valley
Source
335

TOWN OF PORTOLA VALLEY

STAFF REPORT
TO: Mayor and Members of the Town Council
FROM: Darcy Smith, Town Manager
DATE: June 24, 2026
RE: Consider Authorizing and Providing Direction to the Mayor to Complete the Ballot for the Westridge Architectural Supervising Committee 2026 Reinstatement of the Protective Restrictions, Conditions, Covenants, and Agreements for the Westridge Area

RECOMMENDATION
The Town Council may consider authorizing and providing the direction to the Mayor, by motion, to complete the ballot for the Westridge Architectural Supervising Committee to adopt the 2026 Reinstatement of Protective Restrictions, Conditions, Covenants, and Agreements for the Westridge Area.

BACKGROUND
The Town owns real property on Escobar Road in the Westridge neighborhood that is approximately three acres in size. A property assessment report is provided as Attachment 1. The property owned by the Town was offered for dedication to the Town as part of the original subdivision developers in 1971.

The developer offered it as it was considered a steep, unbuildable property. It was dedicated to the Town with the intent to remain as undeveloped.

As a property owner the Town is eligible to complete a ballot for the adoption of the 2026 Reinstatement of Protective Restrictions, Conditions, Covenants, and Agreements (“Restrictions”) for the Westridge Area. To maintain and enhance the distinctive character and advantages of Westridge, and to protect the investments of all of our property owners, the original grant deed of Westridge in 1947 established the Restrictions, which run with the land. In purchasing or acquiring property in Westridge, owners take title to their property subject to the Restrictions, as amended from time-to-time in accordance with the provisions of the Restrictions. The Restrictions govern and regulate the design, siting and construction of all structures in Westridge, the permissible uses and landscaping of Westridge properties, certain easements and setbacks, fencing, signage and lighting, and annual property assessments, etc.

The Town received a ballot from the Westridge Architectural Supervising Committee for the proposed 2026 Reinstatement of the Restrictions. The ballot and proposed 2026 Restrictions are provided as Attachment 2.

The Restrictions were last fully updated in 2008, and are provided as Attachment 3.

DISCUSSION
This agenda item presents for Council consideration the authorization for the Mayor to complete the ballot for the 2026 Restrictions. The Council may direct the Mayorto vote for adoption of the new Restrictions, to vote no on the new Restrictions, or abstain from voting on the ballot. The ballot must be 336
received by July 2, 2026. The Council’s role is to act as a property owner and assess the impact of the proposed document on the Town’s rights and responsibilities as a property owner. The Town Council does not have any authority in a regulatory capacity over the Restrictions.

Changes to the Restrictions between 2008 and 2026 include, but are not limited to, the following:

Document restructuring: The most significant change is a comprehensive reorganization from a loosely numbered list into nine clearly labeled Parts, making provisions easier to navigate. All substantive 2008 provisions are preserved.

Assessments: The annual cap rises from $20/half-acre to $50/half-acre (with the Committee intending to set the 2025 rate at $40), plus a new automatic annual inflation adjustment tied to the Employment Cost Index.

Fire safety (new): Explicit, detailed fire safety obligations added. These include vegetation management requirements, defensible space zones, removal of pyrophytic plants throughout the property, proper flammable materials storage, and compliance with waste/recycling bin protocols. Wells and water storage for fire suppression are now actively encouraged.

Property maintenance (expanded): New rules on storage containers, construction staging, outdoor furniture, and trash/recycling bin visibility, which all must be screened from trails, roads, and neighboring properties.

Residential use clarified: Home offices and remote work now expressly permitted. Short-term rentals (under 30 days) explicitly prohibited. ADUs addressed for the first time, with occupancy restricted to family, household staff, or Portola Valley employees (teachers, first responders, etc.).

Construction timelines formalized: Default limits of 36 months for new residences and 18 months for renovations, with a formal extension/non-compliance process.

Trails: Bicycles, e-bikes, scooters, and skateboards now explicitly banned (previously only motorized vehicles were prohibited).

Nuisances expanded: Drone overflights over a neighbor's property without consent are now a prohibited nuisance — a new addition reflecting modern technology.

Signs updated: Specific size and timing rules added for election, security, construction, and real estate signs. The old "professional nameplate" allowance is gone.

Committee governance: Legal status as an unincorporated association (not a Davis-Stirling HOA) now explicit. Staggered two-year terms, quorum definition, and a good-faith liability shield for volunteer members are formalized.

Assessment Costs: The annual assessment doubles from $20 to $40 per half-acre (raising the Town's bill from $60 to $120/year), with a hard cap of $50/half-acre ($150/year for the Town).

Unlike the 2008 version, the new CC&Rs add automatic annual ECI-indexed increases and allow the Committee to impose emergency special assessments of up to 25% of the annual assessment without a property owner vote.

FISCAL IMPACT
There is no direct fiscal impact associated with completion of the ballot.

As a property owner, the Town faces two categories of new financial impact. First, assessment costs double immediately (from $60 to $120/year) with the potential to reach $150 at the cap, and will increase automatically each year via ECI indexing. Second, and more substantively, the new fire safety and vegetation management provisions in Section 6 impose affirmative ongoing maintenance obligations such as removal of dead, dying, overgrown, or otherwise highly flammable vegetation throughout the parcel. This will require expanded contracted services.

ATTACHMENTS
337

1. Property Information

2. Westridge Current Restrictions

3. Westridge 2026 Restrictions
338
San Mateo County - Property Assessment
Owner 1:

Owner 2:

TOWN OF PORTOLA VALLEY

PORTOLA VALLEY
Owner 765 PORTOLA RD
Address:

CA, 94028--720
Summary of Property Details
APN: 077080120
Care Of:

Legal
Description:

PORTOLA VALLEY
088
District: 3
Neighborhood:

Situs
Address:

LOT 1 WESTRIDGE SUB NO 10 RSM 65/7
8 Property Use Details
Highway & Streets (988H)
Selected parcel highlighted

PORTOLA VALLEY
AD 23
Senatorial:

Supervisorial:

Current Jurisdictions
Assembly:

SD 13
Election Precinct:

City Name:

Congressional:

Zip Code: 94028
Mitigation Fee Area:

CD 16

SOUTH COUNTY
R-1, S-106
39005
Planning Zone:

Property Assessment Report generated 15-Jun-2026 Page 1 of 3 339
Owner 1: TOWN OF PORTOLA VALLEY
Owner 2:

Assessment Details
Owner Address:

Care Of:
765 PORTOLA RD

PORTOLA VALLEY
CA, 94028--720
US
Document Number: AE069277
0 Temp Code:

Change Number:

Assessment Type: Annual
Notice Date:

Secured Assessment Roll: 2025-1
PUC Description:
019000
PUC:

Highway & Streets
988H
TRA:
$0.00
Exemption - Home Owner:

Exemption - Other:

Assessment Values
$0.00
$0.00
$0.00
Land:
$0.00
Root:
$0.00
$0.00
$0.00
$0.00
Total Temp:

Net Assessed:

Total Gross:
$0.00
$0.00
Min/Mineral:

Fixtures:

Temp Improvements (structure):

Improvements (Structure):
$0.00
$0.00
Temp Land:

Sale Code Document Number Sale Date Amount
Sales History
Property Assessment Report generated 15-Jun-2026 Page 2 of 3 340
Tax Rate Area# 019000
019000
019000
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Property Assessment Report generated 15-Jun-2026 Page 3 of 3 341

PROTECTIVE RESTRICTIONS

CONDITIONS, COVENANTS AND AGREEMENTS
AT

WESTRIDGE
San Mateo County
California
Revised as of January 1, 2008
342

FOREWORD
The planners of Westridge created a residential area of exceptional charm and natural beauty, with large sites to ensure privacy, quiet, and spacious outdoor living. Every effort was made to preserve and enhance the natural beauty of each site, individually and in relation to Westridge as a whole. Consequently, Westridge residents enjoy generous open spaces, 10 miles of neighborhood trails, non-intrusive architectural structures and lighting, minimalist landscaping that emphasizes native trees and plants, and diverse wildlife.

To maintain and enhance the distinctive character and advantages of Westridge, and to protect the investments of all of our property owners, the original grant deed of Westridge established Restrictions, Conditions, Covenants and Agreements, which run with the land. In purchasing or acquiring property in Westridge, owners take title to their property subject to the Westridge Restrictions, as amended from time-to-time in accordance with the provisions of the Restrictions. The Restrictions govern and regulate the design, siting and construction of all structures in Westridge, the permissible uses and landscaping of Westridge properties, certain easements and setbacks, fencing, signage and lighting, and annual property assessments, all as more fully set forth herein.

The Restrictions also establish the Westridge Architectural Supervising Committee, which is comprised of members elected by Westridge property owners and funded by an annual property assessment. The Committee is authorized to enforce the Restrictions as well as the Committee's easements. In addition, the Committee is authorized to review in advance and to approve or reject all plans for new structures within Westridge, all plans for alterations to existing structures, for other improvements (including walls, pools, fencing, etc.), and for landscaping projects (including planting and removal of trees). 343

BASIC RESTRICTIONS
The following basic restrictions are contained in the deed to the subdividers of Westridge and may be changed only by the grantors of the deed:

AND SUBJECT, HOWEVER, to the following conditions and restrictions, which conditions and restrictions are hereby expressed to be for the benefit of the remaining and adjoining lands of grantors, their heirs, successors and assigns, including the land contiguous thereto known and designated as Ormondale Ranch and shall be conditions running with the land and binding upon Second Party, its successors and assigns, to wit:
(a) That except for the easterly portion of said property hereinabove conveyed which lies easterly from a line drawn distant six hundred (600) feet westerly from and parallel with the easterly line of said property and the County Road, the land herein granted shall not be used for business or commercial uses, including the keeping of livestock for commercial purposes; provided, however, the farming or grazing of said property by the grantee shall be permitted, and such permitted farming or grazing shall not nor shall it be construed to be a waiver of this condition.
(b) That except for the easterly portion of said property hereinabove conveyed which lies easterly from a line drawn distant six hundred (600) feet westerly from and parallel with the easterly line of said property and the County Road, no parcel, lot, piece, area, or portion of said property shall have an area of less than two and one-half (2.5) acres and re-subdivision of said property in parcels, lots, pieces, or areas of less than two and one-half (2.5) acres is hereby prohibited.
(c) That said property and every part or parcel thereof shall not be used for the keeping of livestock, save and except that the owners of said property shall be permitted to keep livestock on the property owned by them to the extent as may be reasonable for domestic or pleasure use or for home consumption; in no event, however, shall the keeping of hogs be permitted, and the keeping of hogs is hereby prohibited, on said property and each and every part and parcel thereof; that in the event livestock is kept on said property, or any part thereof, within the limits of the foregoing restrictions, such livestock shall be kept in reasonable numbers and shall be housed and controlled in such a manner as to prevent the keeping thereof from becoming a nuisance, and the keeping, control, and housing of said permitted livestock shall be such as not to restrict or impair the free use and enjoyment of any other part or parcel of the property hereinabove conveyed.
344
Restated Amended Declaration of
Restrictions, Conditions, Covenants and Agreements
Covering Real Property known as
Westridge, San Mateo County, California
THIS DECLARATION is made as of January 1, 2008 by THE WESTRIDGE ARCHITECTURAL SUPERVISING COMMITTEE in accordance with the authority and procedures prescribed in the original Restrictions, Conditions, Covenants and Agreements.

A. The original Declaration of Restrictions was recorded on December 17, 1947 by Title Insurance and Guaranty Company, a corporation, in Book 1450 at Page 1, Official Records of San Mateo County, California (the “Official Records”). Since that time, and as provided for in the Restrictions, the original declarant has assigned to, and vested in, the Westridge Architectural Supervising Committee (the “Committee”), all rights, powers and privileges previously possessed by said original declarant as set forth in Grant Deeds dated December 31, 1970 and May 13, 1971 and recorded in Volume 5879, Page 281 and Volume 5941, Page 14, respectively, of the Official Records. The original Declaration of Restrictions was fully amended and restated pursuant to that certain Restated Amended Declaration of Restrictions, Conditions, Covenants and Agreements dated as of January 1, 2008 and recorded March 24, 2008 as Document No. 2008-0031240 in the Official Records (the “Restated Declaration"), which is reproduced in its entirety in this booklet.

B. The real property subject to these restrictions is known as Westridge and is situated in the County of San Mateo, State of California. The property is defined and recorded in the office of the County Recorder of the County of San Mateo, in the following Books of Maps.

Recorded in Book of Maps
Westridge Subdivision Number Tract Vol. Pages Filed
1 593 28 20-22 December 4, 1947
2 597 28 38-40 February 4, 1958
3 632 33 1-3 February 9, 1951
4 652 34 48-50 April 17, 1952
5 687 38 30-37 April 7, 1954
6 739 44 44-47 April 25, 1956
7 759 48 34-36 April 8, 1958
8 760 52 9-10 August 26, 1959
9 787 53 28-29 May 4, 1960
10 -- 65 7-8 June 24, 1966
345
C. The above listed properties are subject to certain restrictions and conditions set forth in and imposed by that certain deed dated October 27, 1947, by and between Dent W.

Macdonough as Trustee under the will of Joseph M. Macdonough, deceased, and Jessie T.

Macdonough, a widow, First Parties, and the Title insurance and Guaranty Company, Second Party, and recorded on November 12, 1947 in the office of the County Recorder of the County of San Mateo, State of California, in Volume 1422 of Official Records, page 264, Records of San Mateo County, California.

D. The properties are also subject to additional restrictions, conditions, covenants and agreements between the several purchasers of said property as among themselves as hereinafter set forth, as recorded in the Official Records, as follows: January 9, 1948 in Book 1444 at Page 6 and in Book 1442 at Page 9, and as amended December 27, 1967 in Book 5410 at Pages 520–527, and February 19, 1968 in Book 5433 at Page 300.

E. It has been deemed advisable to amend said Restrictions, Covenants and Agreements in certain particulars, and said amendments have been approved by vote of the present record owners of the property covered hereby.

NOW, THEREFORE, the Committee declares that the Declaration of Restrictions is hereby restated and amended in its entirety as follows, and the properties listed above shall be sold, conveyed, owned, leased, occupied, resided upon, hypothecated and held subject to the following restrictions, conditions, covenants and agreements between the several owners and purchasers of said property as among themselves and their heirs, successors and assigns, viz:

1. Mutual and Reciprocal Benefits. All said restrictions, conditions, covenants and agreements are and shall be for the direct and mutual and reciprocal benefit of each and every lot shown on said recorded maps and are intended to create and do create mutual and equitable servitudes upon each of the residential lots shown on said map in favor of each other residential lot shown on said map, and are intended to create and do create reciprocal rights and obligations between the respective owners of all the lots shown on said maps and are intended to and do create a privity of contract and estate among the grantees of said lots, their heirs, successors and assigns, and shall, as to the owner of each lot in said tract, his heirs, successors and assigns, operate as covenants running with the land and for the benefit of all other lots in said tract.

2. Effective Dates. Each of and all said restrictions, conditions, covenants and agreements shall continue in full force and effect and be binding until the first day of January 2028, at which time they may be continued in force and effect by vote of the then record owners of a majority of the property covered hereby for additional periods of twenty years, provided, however, that at any time after January 1, 1958, these restrictions may be modified by the vote of the then record owners of a majority of the property covered hereby.

3. Keeping of Animals. No animals, other than a reasonable and usual number of household pets, shall be kept on any of said lots, except as hereinafter specified. The Committee may grant revocable permits giving the owners of any of said lots the right, 346
respectively, to keep and maintain a limited number of horses, poultry, rabbits, or other animals as pets, provided, however, that no hogs may be kept and no animals may be kept or maintained for commercial purposes. It shall be the duty of the Committee to revoke any permit so granted if such use of said property shall become a nuisance to the other lot owners in the property subject hereto.

A. Maximum Number of Horses. In no case shall there be kept and maintained more than five horses on any lot. The provisions of Portola Valley Stable Ordinance No. 968-87, as now in force, and as amended from time to time, shall constitute the minimum requirements for keeping of a horse or horses and for building and maintaining stables, corrals, pastures and other appurtenances for said horse or horses.

4. Signs. No signs shall be displayed on any of said lots except as follows: The name and profession of any professional man may be displayed upon any dwelling house on said parcel upon a sign not exceeding 200 square inches in size. There may also be displayed upon said parcel a sign not exceeding 18 inches by 24 inches advertising the fact that said parcel or said dwelling house is for sale or to let or to lease. Illumination of any such sign or signs shall be subject to the permission of the Committee.

5. Private Residence; Moving of Structures. Said lots shall be used for private residence purposes only, and no structure of any kind shall be moved from any other place onto said premises without the written permission of the Committee.

6. Excavating. No excavation for stone, gravel or earth shall be made on said property, unless such excavation is made in connection with the erection of a building or structure or landscaping improvements thereon.

7. Rubbish. No rubbish shall be stored or allowed to accumulate on any lot.

8. Vending of Liquor. No part of said property shall be used for the purpose of vending intoxicating liquors for beverage purposes or otherwise, whether such vending shall be done directly or under some evasive guise.

9. Oil and Minerals. No well for the production of, or from which there is produced, oil or gas or any other mineral substance (excluding water for private consumption) shall be dug, maintained or operated upon said property.

10. Easements; Motorized Vehicles. Easements and rights of way in and over said property have been reserved to the Committee for the erection, construction and maintenance and operation therein or thereon of drainage pipes or conduits and pipes, conduits, poles, wires and other means of conveying to and from lots in said tract, gas, electricity, power, water, telephone and telegraph service, sewage and other things for convenience to the owners of lots in said tract, for parkways and/or hiking and bridle paths. No structure of any kind shall be erected over any of such easements except upon written permission of the Committee. No 347
motorized vehicles will be permitted on said hiking and bridle paths.

11. Setbacks. No dwelling house or other structure shall be constructed on any of said lots nearer than 50 feet from any public right of way line for streets or nearer than 20 feet to any and all lot boundary or property lines, but this shall in no wise alter the restrictions for stables and corrals set forth in paragraph 3 hereinabove.

12. Resubdivision of Sites. None of said lots may be resubdivided so as to create a parcel having an area less than two and one-half (2.5) acres. Should two or more contiguous lots be acquired by the same grantee, such lots will, unless otherwise stipulated, be treated and considered as one entire lot for the purpose of these restrictions. Where one or more of said lots is, in the opinion of the Committee, of such size and character that it may be divided into two or more lots which will each be similar to other lots in said tract, and adequate in size and character to permit development similar to that on said other lots, then such lot or lots may be divided by the Committee, its successors or assigns, or permission be granted by the Committee, its successors or assigns, to the owner of such lot or lots, as the case may be, to so divide such lot or lots. Such permission shall be deemed given only upon the recordation in the office of the County Recorder of the County of San Mateo, State of California, of an agreement duly executed and acknowledged by the Committee and such lot owner whereby the lot or lots to be so subdivided and the subdivision thereof shall be described.

13. Fences, Walls, Hedges, and Trees. No fence, wall or hedge over six feet in height shall be erected or grown at any place on said premises; provided, however, that the restrictions set forth in this paragraph may be waived or modified as to any parcel by the Committee. The Committee shall also supervise the planting and growth of trees on lots in said tract, and may cause the removal of trees which may have been planted, in order to prevent one lot owner from planting trees, or allowing trees to grow, so that the view from other lots may be unreasonably obstructed or impaired. The grantees agree to abide by any order of the Committee directing them not to plant any trees or to cut down or cut back or remove any trees which may have been planted.

14. Assessments; Liens. All lots in said Subdivision known as Westridge shall be subject to charges or assessments not to exceed $20.00 per annum for each full one-half (0.5) acre (fractional acres less than one-half being disregarded for this purpose) which shall be levied and assessed from time to time by the Committee by resolution or resolutions duly adopted and be payable as specified by the Committee. Upon the adoption of any resolution of assessment the Committee shall forthwith notify each property owner of the amount of said assessment and the date it is due. Each property owner shall be given sixty (60) days to pay said amount, and if not so paid, the Committee shall forthwith cause a notice of said assessment and of the lien thereof to be signed and acknowledged by at least two of its members and recorded in the office of the County Recorder of San Mateo County, California.

Said recorded notice shall embody said resolution and state the rate of such charge or assessment, the time when it shall be payable and become a lien and a description of the residential lots to which it applies. Upon recordation of such notice of assessment and lien each 348
such assessment, together with penalties, interest, costs and reasonable attorney's fees, if any, as established by the Committee from time to time, shall become effective against the property described and shall remain a lien until paid. When charges and assessments are paid, the Committee shall from time to time, execute, acknowledge and record in the office of the County Recorder of San Mateo County, California, a release or releases of lien with respect to the property for which payment shall have been made. Full receipts shall be issued to the owner or owners paying such charges and assessments. Notwithstanding anything herein to the contrary contained, the lien of such charges or assessments shall be subject and subordinate to all mortgages and/or deeds of trust now or hereafter executed covering any lots subject hereto.

Said charges or assessments shall be a personal obligation of and collectible from each owner of any lot at the time of the recordation of such notice of assessment and lien. For the purposes of this paragraph the term "owner" of any lot shall be deemed to be any person or persons in whom the legal title to said property shall stand of record, or any person or persons who shall be the purchaser or purchasers thereof under a contract of sale, or any person or persons who shall be the trustor or trustors under any such deed of trust or his or their successors in interest.

The charges and assessments levied hereunder shall be uniform throughout the property subject hereto and the total funds arising from such charges or assessments, so far as may be sufficient, shall be applied toward the payment of expenses incurred for any or all of the following purposes:

A. Uses of Assessments.
(i) Expense, if any, incident to the enforcement of the easements, restrictions, conditions, covenants, charges and agreements contained in this Declaration, and to the collection of the charge or assessment provided for in this paragraph; (ii) Street lighting, improving and maintaining the streets, sidewalks, paths, hiking and bridle paths, parks, parkway and easement areas; (iii) Employing watchmen, gardeners or caretakers and otherwise safeguarding said property; and
(iv) Caring for vacant and unimproved lots and areas, removing grass and weeds therefrom and any other thing necessary and desirable in the judgment of the Committee to keep the property neat and in good order.

B. Liability of Committee. The money so collected shall be applied to the purposes above mentioned, which shall be carried out only to the extent possible from the money so collected. The Committee shall not be liable to property owners, their successors or assigns, for any act or omission done or occurring under or with respect to the provisions of this paragraph 14; provided such act is done in good faith and such omission is not occasioned by the willful misconduct of the Committee.

C. Right to Assess. The right to assess, adjust, collect, have and receive said charges and assessments, to enforce the collection thereof, and to expend the same as 349
herein set forth, was vested in the Committee by the aforementioned original declarant. Such right to charge or assess shall extend for a period of ten years from January 1, 1948, but after the expiration of said ten-year period, the then record owners of a majority of the property in said tract may vote to discontinue such right; otherwise it shall continue for additional ten-year periods.

15. Voting; Contiguous Lots. In voting pursuant to the provisions of Paragraphs 2 or 16 hereof, the owner or owners of record of each lot shall be entitled to one vote for each full one-half (.5) acre owned by him or them which one-half (.5) acre shall be known as a voting unit (fractional acres less than one-half (.5) being disregarded for this purpose), provided that he or they be not in default in payment of the current or past charges or assessments as hereinbefore set forth. Should two or more contiguous lots be acquired by the same grantee, such lots will, unless otherwise stipulated, be treated and considered as one entire lot for purposes of assessments and/or voting rights. The action resulting from such vote is to be evidenced by a written instrument signed and acknowledged by the Chairman and Recording Secretary of the Committee, and recorded in the County of Recorder's office of the County of San Mateo, State of California.

16. Architectural Supervising Committee. The Committee was created by the original Declaration of Restrictions and continues its operations in accordance with those restrictions and as amended herein. The Committee shall consist of not less than three nor more than five persons, who shall be elected bi-annually by a vote of the property owners in accordance with such procedures as shall be established from time to time by the Committee.

Should a vacancy occur the replacement membership shall be offered to candidates who stood for election and if not accepted to other Westridge property owners as selected by the Committee members.

A. Functions of Committee; Committee Signatures Required; Committee Operating Procedures. The functions of the Committee, in addition to the functions elsewhere in this Declaration set forth, shall be to pass upon, approve or reject any plans or specifications for structures to be erected on Westridge lots and for the alteration or remodeling of, or additions to, any then existing structure on such lots so that all structures shall conform to the provisions hereof, the general plan of development and such rules as the Committee may adopt for the improvement and development of all the Westridge tracts. Nothing herein shall be construed as authorizing or empowering the Committee by rule or otherwise to change or waive any restrictions, conditions, covenants or agreements set forth in this Declaration except as herein specifically provided. The Committee may act by any two of its members. Letters pertaining to the Committee's business and approvals of plans may be signed by one Committee member with the prior agreement of at least one other member. The names of the Committee members who have so agreed must be stated in the minutes of the next monthly meeting. Bank withdrawals, drafts or checks must be signed by the Treasurer and one other Committee member. Documents to be recorded with the San Mateo County Recorder must be signed by at least two Committee members. The Committee shall adopt reasonable rules and regulations for the conduct of its proceedings and may fix the time and place for its 350
regular meetings and for such extraordinary meetings as may be necessary, and shall keep written minutes of its meetings which shall be open for inspection to any lot owner upon the consent of any two of the members of the Committee. The Committee shall by a majority vote elect one of its members as Chairman, one of its members as Recording Secretary and one of its members as Treasurer and their duties shall be such as usually appertain to such offices.

Any and all rules or regulations adopted by the Committee regulating its procedure may be changed by the Committee from time to time by majority vote and none of said rules or regulations shall be deemed to be any part or portion of these restrictions, conditions, covenants or agreements. The Committee by a majority vote may also adopt reasonable rules and regulations governing the meetings of the owners of lots or parcels subject hereto and the Chairman of the Committee shall be "ex officio" the Chairman of any and all meetings of such lot owners and the Recording Secretary of the Committee shall be "ex officio" the Recording Secretary of any and all such meetings. Written minutes of such meetings shall be kept which shall be open for inspection without limitation to the owners of any such lots. No such rules or regulations governing the meetings of such lot owners and no action or proceedings taken at such meetings except as herein otherwise expressly provided shall be deemed a part of or to affect these restrictions, conditions, covenants or agreements.

17. Permissible Buildings.

A. Single Family Dwellings. No buildings other than a single family dwelling house, and appropriate ancillary structures, including stables, if permitted by law, shall be erected, constructed or maintained on any of said lots, nor shall any house constructed on any of said lots be used for any purpose other than a dwelling house, and more particularly, and without the intent to limit or effect of limiting the provisions hereof, no store, flats, double houses, radio towers, hotels or apartment houses shall be built or placed upon said property nor shall any trade, business or manufacture, nor any filling station, garage, or repair shop of any kind, school, sanitarium, hospital, commercial gardening, dairy, animal or poultry raising, be carried on or conducted for commercial purposes on said property, or any part thereof.

B. Approval of Buildings. No structures, either residence, stable or ancillary structure, or tennis court, swimming pool, wall, fence, or other improvements shall be constructed upon any of the said lots without the written approval as to location, height and design thereof first having been obtained from the Committee. Before construction work of any kind is started a plan of the exterior design of any building to be constructed on any of said lots shall first be submitted to the Committee and approved by the Committee. Said plan shall show the four exterior elevations of said building, together with an exterior plan view plotted on a map of said lot, showing land contours which may be affected.

C. Approval of Landscaping. No landscaping, except minor gardening, shall be begun on said property and no planting or removal of trees shall take place, until the plans and specifications therefor have been first approved in writing by the Committee.

D. Prosecution of Work. When the erection of any residence or other 351
structure is once begun, work thereon must be prosecuted diligently and it must be completed within a reasonable time.

18. Penalties for Violation. Violation of any of the restrictions, conditions, covenants or agreements herein contained shall give to the Committee, its successors and assigns, the right to enter upon the property, upon or as to which said violation or breach exists, and, at the expense of the owner, to summarily abate and remove any erection, thing, or condition that may be or exist thereon contrary to the provisions hereof, without being deemed guilty of trespass. The result of every action or omission whereby any restriction, condition, covenant or agreement is violated, in whole or in part, is hereby declared to be and constitute a nuisance and every remedy allowed by law against a nuisance, either public or private, shall be applicable against every such result. Such remedies shall be deemed cumulative and not exclusive.

19. Suits Brought by Committee. Grantees agree that the members of the Committee may at any time institute or prosecute in their names or cause to be instituted or prosecuted in the name of any member of the Committee or in the name of the Committee, any suit or suits or other proceedings which the Committee may consider advisable in order to compel performance of any covenant or restriction contained herein. Should any such suit or proceeding be instituted by the Committee against any property owner, or his successors in interest and assigns, the property owner and his successors and assigns agree individually and collectively to pay costs and reasonable attorneys' fees incurred by the Committee. In the event of actual litigation, said fees and costs may be fixed by the Court in such suit or proceedings.

20. Result to be Attained. The authority of the Committee hereinbefore granted in paragraph 16 to pass upon, approve or reject plans and specifications for buildings to be erected on said lots shall be exercised in a manner reasonably calculated to preserve, protect and enhance the general appearance of the properties subject to these restrictions.

21. Acceptance of Restrictions. All purchasers of property shown on said maps shall, by acceptance of contracts or deeds for any lot or lots shown thereon, or any portion thereof, thereby be conclusively deemed to have consented and agreed to all restrictions, conditions, covenants and agreements set forth herein for themselves, their heirs, executors, administrators and assigns.

22. Invalidity. It is expressly agreed that the covenants, conditions, restrictions and agreements herein contained are severable and that if any one or more thereof should be held invalid or void, such invalidity or voidness shall in no way affect any other covenant, condition, restriction or agreement herein contained not depending thereon.

23. Mortgages and Deeds of Trust. All restrictions, covenants, conditions, agreements and other provisions herein contained shall be deemed subject to and subordinate to all mortgages and/or deeds of trust now or hereafter executed covering real property hereto and none of said restrictions, covenants, conditions, agreements or other provisions shall supersede or in any way reduce the security or affect the validity of any such mortgage or deed 352
or trust; but it is distinctly understood and agreed that if any portion of said property is sold under a foreclosure of any mortgage or under the provisions of any deed of trust, any purchaser at such sale, his or its successors or assigns, shall hold any and all property so purchased subject to all the restrictions, covenants, conditions, agreements and other provisions of this Declaration except delinquent charges or assessments pursuant to paragraph 14 hereof.

24. Modification for Utilities and Services. The Committee further reserves to itself, its successors and assigns, the right from time to time to waive, release or modify the restrictions, conditions, covenants and agreements herein contained to the extent which may be convenient or necessary for the proper installation, maintenance and repair of public utilities or other public services for use upon or for service to the property which is or may be subject hereto.

IN WITNESS WHEREOF the Committee has caused these presents to be executed by its members thereunto duly authorized as of the date first above written.

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_____________________________________________________________________________ TO: Mayor and Members of the Town Council
FROM: Sarah Cawrse, Planning and Building Director
Ocoee Wilson, Senior Town Planner
DATE: June 24, 2026
RE: Receive Update and Provide Direction to Staff on the Draft Housing Element Amendment and Consider Authorizing Staff to Submit the Draft Housing Element Amendment to the State Department of Housing and Community Development

RECOMMENDATION
Staff recommend that the Town Council receive information and provide direction to staff on the Draft Housing Element Amendment and consider, by motion, authorizing staff to submit the Draft Housing Element Amendment to the State Department of Housing and Community Development.

BACKGROUND
The Town of Portola Valley Housing Element identifies and analyzes existing and projected housing needs and contains the official policies for the preservation, conservation, rehabilitation, and production of housing in the Town of Portola Valley. The current Housing Element covers the Planning Period from January 2023 through January 2031. It was adopted by Town Council on January 24, 2024, and certified by the State Department of Housing and Community Development (HCD) on January 30, 2024. It was re-certified on May 28, 2025 following Zoning Code amendments to implement the updated Housing Element. The Town has made good faith compliance progress on Housing Element implementation.

Following recertification, it was later identified that Dorothy Ford Park was no longer an adequate/feasible site; therefore, in late 2025 the Town moved forward with an amendment for the Housing Element to remove the site and to identify two new housing element sites and to revise another existing site. Collectively, the sites maintain the total number of housing units identified in the Sites Inventory and continue to demonstrate the Town’s ability to meet its RHNA. On December 4, 2025, the proposed Sites Inventory

TOWN OF PORTOLA VALLEY

STAFF REPORT

TOWN OF PORTOLA VALLEY
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changes and associated implementing items were presented for preliminary review at a special Town Council meeting to receive information and provide direction to staff. Town Council supported the Sites Inventory changes and their direction included changing the density range for the new draft Mixed-Use High Density zoning district from 20-23 du/acre to 20-25 du/acre, which would be applied only to the three sites1. The draft amendment was submitted to HCD for review on January 23, 2026, as directed by Council on January 14, 2026. Following the submittal, the Town received formal comments from HCD on March 25, 2026.

Overview of Town Sites Inventory
State Housing Element Law (Government Code Section 65583(a)(3)) requires that jurisdictions demonstrate their availability of adequate land resources to accommodate their “fair share” of regional housing needs. The Housing Element is required to demonstrate that these land resources have the appropriate site characteristics and development regulations required to accommodate their community’s housing needs as identified by HCD and the Bay Area’s regional governing body, the Association of Bay Area Governments (ABAG). The Housing Element includes an inventory identifying sites that can accommodate the Town’s Regional Housing Needs Allocation (RHNA) obligations of 253 units, plus a buffer of additional units, for the 2023-2031 planning period, including housing for very low- and low-income households. Housing Element Table 6-6: Adequate Sites Land Inventory (Sites Inventory) identifies sites zoned for 120 residential units. In addition, the Housing Element identified the potential for a total of 102 accessory dwelling units (ADUs) to be constructed between 2023-2031. Finally, there are 50 units in the Town’s housing pipeline that were approved or pending approval that are credited towards the Town’s RHNA for 2023-2031.

DISCUSSION
This agenda item is intended to allow staff to provide information on the updated Draft Housing Element Amendment (Draft Amendment) and to seek Council direction to staff on the Draft Amendment and consider, by motion, authorizing staff to submit the Draft to the State Department of Housing and Community Development (HCD). There is a required minimum seven-day public comment period prior to resubmitting to HCD. The draft was posted for public comment on June 19, 2026 and will remain open through June 30, 2026.

Public comments on the Draft Amendment will also be accepted at the public meeting.

Comments Received from HCD
Following the initial submittal of the Draft Housing Element Amendment, HCD provided formal comments to the Town. The comment letter was published on the Town’s website and can be found as Attachment 2. In summary, HCD found that the Draft Housing Element Amendment generally complies with State Housing Element Law but requested additional information and revisions before adoption. Key comments focused on:

1. providing additional analysis of infrastructure availability and site access, particularly for the Skyline Open Space site;
1 Meetings with additional background and information on how updated sites were selected can be found in Town Council Meeting Agendas dated March 12, 2025; December 4, 2025; January 14, 2026 – Agenda’s can be found on the Town’s website at https://www.portolavalley.net/town-government/town-council/minutes-and-agendas. 378

2. further evaluating environmental and physical development constraints;

3. updating and resubmitting the electronic sites inventory;

4. revising housing programs as needed based on the completed sites analysis, including consideration of Affordable Housing Trust Fund resources for the Skyline site; and

5. the importance of completing Program 1-1b (Mixed-Use High-Density District rezoning) to maintain adequate RHNA capacity.

Revisions to Address Comments
The current draft of the housing element, included as Attachment 1, maintains the existing housing sites previously approved by Council on January 14, 2026. To address the comments from HCD the draft has been updated to include additional site analysis and updated site plans for each of the new and revised sites, and incorporates a new program, Program 4-5, committing the Town to publish a notice of funding availability (NOFA). The NOFA will also include offering additional incentives/subsidies from the affordable housing fund to priority housing sites to assist in the development of the sites and help the Town achieve their RHNA.

The draft amendment is designed to address updating the sites following research that indicated one of the previously identified sites, Dorothy Ford Park, was found to be less feasible than initially thought1. The following sites were identified to be added or revised as directed by Council in January 2026, as part of the Draft Amendment, in order to reallocate the needed units that were previously identified with the Dorothy Ford Park Site.

With the most recent draft these sites remain within the Site Inventory, but additional analysis was provided within the Draft Amendment, as requested by HCD:

1. Village Square - 884 Portola Rd. The 2.3-acre parcel is currently developed with older one-story low intensity commercial uses. The Sites Inventory identifies the potential for the site to accommodate 20 Very Low Income (VLI) units and 5 Above Moderate Income (AMI) on a 1.25-acre developable area. The property owner, who is a local developer, has expressed interest in developing housing that is compatible with and retains the main commercial building and tenants.

2. Christ Church - 815 Portola Valley Rd. The 2.93 acre site is identified in the Sites Inventory to be able to accommodate one (1) Above Moderate Income unit and 14 VLI units on a 0.75-acre developable area. The Church has received a grant to explore housing development and is currently reviewing potential options.

3. Skyline Open Space (North of 19501 Skyline Blvd). The 14.65 acre parcel is currently vacant, but has an approximately 0.8-acre developable area based on the Housing Element and State law site criteria. This area is identified to accommodate 16 VLI units.

The updated Draft Amendment includes no significant changes to the sites, all three sites remain proposed as Mixed-Use High-Density and the number of units on each site is consistent with the previous draft of the Housing Element Amendment. The overall number of projected housing units in each income category of the Housing Element Sites Inventory remains the same as in the existing Housing Element adopted in March 2024. The analysis of the sites included in the updated Draft Housing Element Amendment demonstrates 379
each the site’s ability to potentially house the number of units identified within the Sites Inventory in order to reach the required RHNA of 253 Units.

NEXT STEPS
If the Town Council authorizes staff to send the Draft Amendment to HCD, then staff will submit the Draft Amendment following the close of the public comment period (June 30, 2026). HCD then has 60 days to review the Draft Amendment. HCD may recommend changes, which would then proceed back through the Town review process.

Once certification is received by HCD, the Final Amendment and associated items (rezonings, general plan amendment, and CEQA clearance) will be reviewed by the Planning Commission at a public hearing where they make a formal recommendation to the Town Council. Finally, there will be a Town Council public hearing to consider adoption of the Amendment and all associated items.

Along with the Draft Housing Element Amendment several associated items will be brought forth for Town Council Approval to implement the Draft Amendment including:
• Zoning Code Text Amendments
o New Mixed-Use High Density Zoning District and other minor text amendments to implement the Draft Amendment
• Zoning Map Amendment
o New Mixed-Use High Density Zoning District for the three sites • General Plan Land Use Element Amendment
o New Mixed-Use (High 20-25 du/ac) Land Use Intensity Category • General Plan Comprehensive Plan Diagram Amendment
o New Mixed-Use (High 20-25 du/ac) Land Use Intensity Category for the three sites
• California Environmental Quality Act (CEQA) Determination and Clearance. The Town staff and consultants are evaluating preparing an addendum to the approved Initial Study/Mitigated Negative Declaration that was prepared for the Housing Element to include the new sites and rezonings.

The above listed items have been prepared, in draft form, concurrently with the Draft Amendment, and the drafts can be found attached to the January 14, 2026 Town Council Agenda.

ENVIRONMENTAL IMPACT:

This current agenda item is not considered a “Project” per CEQA Guidelines, and therefore no further environmental analysis is required.

FISCAL IMPACT
Future fiscal impact will depend on edits to the Housing Element Amendment to be made based on Town Council direction in this and subsequent meetings. The exact cost depends on the extent of the changes directed by the Town Council to address HCD comments.

ATTACHMENT
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1. Draft Housing Element Amendment

2. HCD Comment Letter dated March 25, 2026
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TOWN OF
Portola Valley
AMENDED DRAFT #2 FOR PUBLIC REVIEW
Prepared for:

Town of Portola Valley
June 2026
2023 - 2031 Housing Element Update
Access full document at www.portolavalley.net/home/
showpublisheddocument/20782/639174706210737473
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STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400
Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
March 25, 2026
Darcy Smith, Town Manager
Town of Portola Valley
765 Portola Road
Portola Valley, CA 94028
Dear Darcy Smith:

RE: Town of Portola Valley’s 6th Cycle (2023-2031) Draft Amendment to the Housing Element
Thank you for submitting the Town of Portola Valley (Town) draft amendment to the housing element update that was received for review on January 23, 2026. Pursuant to Government Code section 65585, the California Department of Housing and Community Development (HCD) is reporting the results of its review.

On May 30, 2023, HCD found the Town’s housing element in substantial compliance with State Housing Element Law (Gov. Code, § 65580 et seq) and as of this writing, the Town continues to comply with State Housing Element Law. This draft amendment continues to meet most statutory requirements. However, this draft amendment may impact HCD’s prior finding of substantial compliance and should be revised, as follows:

An inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites. (Gov. Code, § 65583, subd. (a)(3).) Identify actions that will be taken to make sites available during the planning period with appropriate zoning and development standards and with services and facilities to accommodate that portion of the city’s or county’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory… (Gov. Code, § 65583, subd. (c)(1).)
Infrastructure: The element must explain whether sites have sufficient existing or planned, water, sewer, and dry utilities infrastructure available and accessible to support housing development, particularly for the Skyline Open Space site.

Additionally, the element should describe accessibility to the Skyline Open Space site, including whether easements will be needed.
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Darcy Smith, Town Manager

Environmental Constraints: While the element generally discusses environmental constraints it should also describe whether there are any conditions that preclude development of the sites, including any other known conditions. Examples of other known conditions include but are not limited to shape, access, environmental and compatibility overlays, contamination, easements, property conditions and scenic setback or other additional development standards.

Electronic Site Inventory: Pursuant to Government Code section 65583.3, subdivision (b), the Town must utilize standards, forms, and definitions adopted by HCD when preparing the sites inventory and submit an electronic version of the sites inventory. While the Town has submitted an electronic version of the sites inventory, since changes will occur, future re-adopted versions of the element must also submit the electronic version of the sites inventory.

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

Additionally, the element could add or revise programs to commit using the Affordable Housing Trust Funds to support development on the Skyline Open Space site as discussed on page 128.

The draft amendment will not negatively impact HCD’s finding of substantial compliance with State Housing Element Law once the amendment has been revised to address the above requirements, adopted, submitted, and reviewed by HCD to comply with the above requirements pursuant to Government Code section 65585.

Additionally, Program 1-1b (Mixed-Use High-Density District) must be completed to maintain adequate sites with appropriate zoning and development standards to accommodate the regional housing need allocation (RHNA). HCD urges the Town to complete this rezoning concurrent or before adoption of the housing element. Under separate cover, HCD will provide a preliminary review of the draft rezoning documents to assist the Town in timely completion of Program 1.1b. Please be aware, Government Code section 65585, subdivision (i) grants HCD authority to review any action or failure to act by a local government that it determines is inconsistent with an adopted housing element or housing element law. This includes failure to implement program actions included in the housing element. HCD may revoke housing element compliance if the local government’s actions do not comply with state law.

Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the Town must continue to engage the community, including commenters on 384
Darcy Smith, Town Manager

this draft amendment and organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. Please be aware, any revisions to the element must be posted on the local government’s website and to email a link to all individuals and organizations that have previously requested notices relating to the local government’s housing element at least seven days before submitting to HCD.

Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the Town continues to meet housing element requirements for these and other funding sources.

HCD appreciates the continued dedication of the Town in the housing element update process and welcomes the opportunity to discuss this review and assist with the remaining statutory requirements of State Housing Element Law. If you have any questions or need additional technical assistance, please contact Anthony Errichetto, of our staff, at [email protected].

Sincerely,
Paul McDougall
Senior Program Manager
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TOWN OF PORTOLA VALLEY

LIAISON MEMO
TO: Mayor and Members of the Town Council
FROM: Vice Mayor Mary Hufty
DATE: June 24, 2026
RE: 06/08/2026 Geologic Safety Committee Liaison Memo

BACKGROUND
OVERVIEW:

A subcommittee to collect all comments from the GSC was authorized to complete its function for the June 30th finish of the Safety Element. Grammatic corrections offered on the overview and some minor corrections on the Geologic section were touched on.

In general, the committee appreciated the respect the staff, Council, Commissions and Committees have for the role of scientific data in formulating our emergency resilience preparations and responses. Very appreciative of the careful incorporation of the prior work on the Safety Element.

PRESENTATION: to 20 people by Professor Kimberley Bisniuk on the San Andres Fault – new Geomorphic Data Analysis- rate and timing, surface displacement shows big earthquakes which rupture through the surface. You can see them if you know how to look. Off set landforms, streams get off set, and we can quantify slip rates.
1905, 1989 are easily visible in Portola Valley, slip rate is what defines HAZARD.

North 24 millimeters/year, Peninsula section has recently been shown to be consistent with that level- 25 +/-3mm/year of movement. The whole Holocene period. We have been under-estimating by 1/3 or 9 mm/year. Stick-slips create strong events. We are due for more action.

San Gregorio Fault is underwater except at Pillar point bluff (Seal Cove) creating the Maverick Waves, and Big Sur were it comes on land. Its creep is 2.3 mm/year 1/10 of the strength of ours! Geology creates the drama of our landscape. But it does increase the land sliding along the coast.

Consultants tend to underestimate the activity of the active faults as opposed to local experts. PV and the state recommend a 50-foot set back. However, PV is entirely in the ZONE of the San Andreas.

Magnitude 6.7-7.8 level of preparedness needed. 120 years, since last major energy release- 3meters of motion have been accumulated since1908. There is real concern for the fire following earthquake scenario within 30 years. turn off solar storage and gas in an event. PG&E shut offs are critical. 386

TOWN OF PORTOLA VALLEY

LIAISON MEMO
TO: Mayor and Members of the Town Council
FROM: Vice Mayor Mary Hufty
DATE: June 24, 2026
RE: 06/17/2026 Trails and Paths Committee Liaison Memo

BACKGROUND
Attendance: Gary Hanning, Chair, Patricia Murray, Vice Chair, Joe Coleman, Secretary, Barb Eckstein, Member, Ellie Ferrari, Member, Susan Gold, Member, Jeff Lokey, Member, Brenda Munks, Member Portola Terrace Trails: update was received and discussed- The Mayor and The Trails Chair have walked the property with the Stanford management team and there is progress towards a positive system of an upper and lower loop trails with a potential Westridge connection. Emphasis is on a safe, aesthetic, welcoming, walking access to open space and trails for new and old residents alike.

Hawthorns Project: The committee reviewed and edited a letter in detail to be sent to Council.

Top concerns remain the experience and the safety of children walking from Corta Madera School to Triangle Park and to Alpine Hills.

The Trails & Paths Committee has followed the Hawthorns planning process closely for several years, including formal feedback letters submitted to the Hawthorns Public Access Working Group in 2023 and 2024. With the Hawthorns Area Plan now advancing through Midpen’s planning and environmental review process, they will be recommending how the Town should proceed and to underscore the trail priorities that must be protected as the project moves forward. The committee believes the possibility of the Town acquiring the Hawthorns property merits serious
consideration. The Hawthorns is a rare open-space asset, well suited in scale to the Town; from a trails standpoint, Town ownership would give Portola Valley the greatest ability to secure the trail and access outcomes described below. Their focus is the trails and paths dimension of the project.

The Hawthorns represents one of the most consequential trail opportunities in Portola Valley in a generation. The committee’s role is to recommend trail routing, review and comment on plans during the permitting process, and to uphold the Trails & Paths Element of the General Plan.

The Alpine Road trail is a vital Safe Route to School and runs beside one of the Town’s busiest scenic road corridors. The Town’s engagement with MROSD should make Alpine Trail improvements an explicit
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Connectors into the Town’s trail system. The Hawthorns interior trails should connect cleanly into the surrounding Town network, including connections toward the Sweet Springs and Los Trancos trails, consistent with the Trails & Paths Element. Thoughtful connections are what turn the Hawthorns from an isolated parcel into an integrated part of the Town’s trail system. 388

TOWN OF PORTOLA VALLEY

LIAISON MEMO
TO: Mayor and Members of the Town Council
FROM: Councilmember Rebecca Flynn
DATE: June 24, 2026
RE: 06/18/2026 Wildfire Preparedness Committee Liaison Memo

BACKGROUND

ACTION ITEMS

1. Recruiting Firewise neighborhood captains and block captains. New maps showing Firewise and Neighborhood watch neighborhoods will be posted soon to the PV website.

2. Emergency Prep Day Sat June 27. 11-2 pm. WPC attending with a Firewise Booth

3. Comments being submitted to Planning Department on the Safety Element from WPC.

4. Evacuation Drill on Sept 11 in Los Trancos and Vendor Fair at Town Center

5. Join the WFPD e-notification list and check their website for banners for more information on expected Red Flag days.

6. Home defensible space inspections can be scheduled NOW on the WFPD website – please consider coordinating your close neighbors on the same date when you are all home for efficiency of Fire resources. BONUS: you get extra time to complete your property improvements. Formal inspections will being late 2026, early 2027 in PV with a one year deadline to make improvements.

NOTES

1. 100% Firewise Update – Neighborhoods split up between Patty, Vivek, Lorrie, Wanda – Identified 5 people who have expressed interest for Alpine Hills. Goal to find 5 more for Alpine Hills (280 homes). Wanda has a name for Willowbrook and Natthorst. Patty still recruiting Westridge block captains. Patty has meeting with Woodside Priory. Will contact other schools. PVRanch did not incorporate CMS when they did their Firewise. Blue Oaks and Brookside/CM in progress, working on their certification. Have received updated maps of PV Firewise coverage – color coded and Neighborhood watch neighbors overlaid on top. Confirmed list of all Firewise leaders in PV and surrounding areas. Subcommittee will pull them together for a meeting to talk about best practices and issues. Firewise Booth at Emergency Prep Day Sat June 27. 11-2 pm. Patty to post a couple email notes to the Town about the Firewise Booth. Tag for #Firewise on PVForum. Map will be blown up on the easel. Potential for future Farmer’s market or Roberts table.

2. Safety Element – Chris identified some actions based on Moderate vs high fire hazard areas. a. Suggestions for missed high-level policies/actions that need to have new ordinances? i. No parking on narrow streets during red flag warning days. How is this implemented? Current ordinance fire truck access. Contractor warnings. ii. Town require homes to get rid of wood shake roof on change of ownership (many are long term owners).
iii. Ordinance – when residents need to cut high grass – WFPD have an ordinance – maintain year-round – when it becomes hazardous or dry, needs to be 389
kept at 4”. Not on hot, windy, red flag warning days. Can report nuisance on WFPD – send out inspector – violation – 10 days to comply.
iv. Firewise recommendations – expand the section in the SE. b. WPC accepted the draft SE review and recommendations document and submitting to the Planning Department.
c. WFPD makes e-notification list about Red Flag warning day and emails to socials. Check WFPD website banners with dates and precautions. Follow on IG. Streets working, chipping. Street captains to schedule inspections. d. Inspections – defensible space – end of 2026-beg 2027. Already doing inspections. 12- month does not apply.

3. Fire Marshall
a. Evacuation Drill on Sept 11 in Los Trancos. National Preparedness Month. Go-bag, SMC alerts, genesys protect app, Website page on drill under devt. Vendor fair at Town Center. b. WFPD created many comments on the Safety Element. Working on all sections of the Safety Element
c. WFPD reviewing the MJLHP for submission.
d. Finalizing the Map book of all the communities – providing to the Town.

4. MJ update
a. Goat vendors – 5 residents interested in group buy. Sue Chaput plans to organize. b. Gate vendors list provided
c. Also looking for weed whackers
d. Decking ordinance report – non-combustible material is not required by the state. Town adopted the WUI code. TC ratified the district Fire code on a 3-year cycle. WFPD does the plan checks for the fire check plan check. New code has superseded the old ordinance. e. Still working on website update.
f. New maps created and will be posted to website
g. 4 homes have been Wildfire prepared homes and 4 more in the process.

5. SUBCOMMITTEE AND COMMITTEE LIAISON UPDATES:
a. EPC – holding emergency fair; subcommittee review for safety element; EOC is continuing to be built up. Town’s hub for coordinating a hazardous event.

6. Next meeting: Thursday, July 16, 2026 at 10:00 AM. Len Waterman – One shoreline – insurance pilot for 800 homes.
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