The Public Record — Joint Meeting for the Rules and Open Government Committee and Committee of the Whole, April 12, 2023

RULES COMMITTEE: 4/12/2023
Item: B.1
File ID: ROGC 23-149
TO: Honorable Mayor & FROM: Toni J. Taber, CMC
City Council City Clerk
SUBJECT: The Public Record DATE: April 12, 2023
March 29 – April 6, 2023

ITEMS FILED FOR THE PUBLIC RECORD
Letters from Boards, Commissions, and Committees
Letters from the Public
1-4. Letters from 4 members of the public, dated March 29-April 3, 2023, regarding: Policy 5- 1, Use a City-led Community Engagement Process.

5. Letter from Emmanuel Abello (LAFCO), dated March 31, 2023, regarding: Now Available - Agenda Packets for the April 5, 2023 LAFCO Meeting at 1:15 PM.

6. Letter from Svetlana Furman, dated April 2, 2023, regarding: Prioritize the safety of our streets for all users and fully fund Vision Zero now.

7. Letter from Emmanuel Abello (LAFCO), dated April 6, 2023, regarding: Proposed LAFCO Budget for Fiscal Year 2024.
____________________________
Toni J. Taber, CMC
City Clerk
TJT/tt
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Fw: Mary Lindemuth 95118 - Policy 5-1, Use a City-led Community Engagement Process City Clerk <[email protected]>
Thu 3/30/2023 10:53 AM
To: Rules and Open Government Committee Agendas <[email protected]> From: San Jose United <
Sent: Wednesday, March 29, 2023 7:00 PM
To: < District2 <[email protected]>; District3
<[email protected]>; District4 <[email protected]>; District5 <[email protected]>; District 6 <[email protected]>; District7 <[email protected]>; District8 <[email protected]>; District9 <[email protected]>; District 10 <[email protected]>; District1 <[email protected]>; The Office of Mayor Matt Mahan <[email protected]>; City Clerk <[email protected]> Subject: Mary Lindemuth 95118 - Policy 5-1, Use a City-led Community Engagement Process Dear City Council,
I join 1,100+ community members in urging you to use a city-led community engagement process for any development of areas zoned Private Recreation and Open Space, including the 114 acre Pleasant Hills Golf Course site.

Use a city-driven and very robust community engagement and visioning process like you are doing for sites a fraction of the size. The city and community should drive that process, not the developer. Please also ensure any future plans for this site include dedication of a significant percentage of the site for public open space.

Mary Lindemuth
95118
You may not use my contact information for any purpose other than to respond to my concern regarding the topic listed above, nor may you share my address with any other organization(s) or individual(s). --
This mail was sent on behalf of a San Jose resident via San Jose United https://www.sanjoseunited.net
Community Working Together
Public Record: 1
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Fw: Veronica Sanchez 95127 - Policy 5-1, Use a City-led Community Engagement Process City Clerk <[email protected]>
Thu 3/30/2023 8:45 AM
To: Rules and Open Government Committee Agendas <[email protected]> From: District 5 United <
Sent: Wednesday, March 29, 2023 7:13 PM
To: < District2 <[email protected]>; District3
<[email protected]>; District4 <[email protected]>; District5 <[email protected]>; District 6 <[email protected]>; District7 <[email protected]>; District8 <[email protected]>; District9 <[email protected]>; District 10 <[email protected]>; District1 <[email protected]>; The Office of Mayor Matt Mahan <[email protected]>; City Clerk <[email protected]> Subject: Veronica Sanchez 95127 - Policy 5-1, Use a City-led Community Engagement Process Dear City Council,
I join 1,100+ community members in urging you to use a city-led community engagement process for any development of areas zoned Private Recreation and Open Space, including the 114 acre Pleasant Hills Golf Course site.

I believe that it is imperative for the City to play an active role in the community engagement process to ensure that the interests of the residents are prioritized. Community engagement should be a collaborative process where the City works in partnership with the residents to ensure that their voices are heard and their concerns are addressed. The City should take the lead in engaging with the community, providing a platform for meaningful dialogue and input from residents, and ensuring transparency throughout the process.

Furthermore, I strongly believe that a significant portion of the site should be dedicated to public open space. As our city continues to grow, access to green space is becoming increasingly important for the health and well-being of our residents. A public open space at the Pleasant Hills Golf Course site would not only provide a much-needed recreational space for residents but also serve as a valuable community gathering place.

Veronica Sanchez
95127
--
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Community Working Together
Public Record: 2
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Fw: George Southland 95135 - Policy 5-1, Use a City-led Community Engagement Process
Agendadesk <[email protected]>
Mon 4/3/2023 4:22 PM
To: Rules and Open Government Committee Agendas <[email protected]> From: District 5 United <
Sent: Monday, April 3, 2023 2:19 PM
To: < District2 <[email protected]>; District3
<[email protected]>; District4 <[email protected]>; District5 <[email protected]>; District 6 <[email protected]>; District7 <[email protected]>; District8 <[email protected]>; District9 <[email protected]>; District 10 <[email protected]>; District1 <[email protected]>; The Office of Mayor Matt Mahan <[email protected]>; City Clerk <[email protected]> Subject: George Southland 95135 - Policy 5-1, Use a City-led Community Engagement Process Dear City Council,
I join 1,100+ community members in urging you to use a city-led community engagement process for any development of areas zoned Private Recreation and Open Space, including the 114 acre Pleasant Hills Golf Course site.

George Southland
95135
--
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Community Working Together
Public Record: 3
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Fw: Florence A. Southland 95135 - Policy 5-1, Use a City-led Community Engagement Process
Agendadesk <[email protected]>
Mon 4/3/2023 4:22 PM
To: Rules and Open Government Committee Agendas <[email protected]> From: District 5 United <
Sent: Monday, April 3, 2023 2:19 PM
To: < District2 <[email protected]>; District3
<[email protected]>; District4 <[email protected]>; District5 <[email protected]>; District 6 <[email protected]>; District7 <[email protected]>; District8 <[email protected]>; District9 <[email protected]>; District 10 <[email protected]>; District1 <[email protected]>; The Office of Mayor Matt Mahan <[email protected]>; City Clerk <[email protected]> Subject: Florence A. Southland 95135 - Policy 5-1, Use a City-led Community Engagement Process Dear City Council,
I join 1,100+ community members in urging you to use a city-led community engagement process for any development of areas zoned Private Recreation and Open Space, including the 114 acre Pleasant Hills Golf Course site.

Florence A. Southland
95135
--
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Community Working Together
Public Record: 4
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FW: Now Available - Agenda Packets for the April 5, 2023 LAFCO Meeting at 1:15 PM City Clerk <[email protected]>
Mon 4/3/2023 8:47 AM
To: Rules and Open Government Committee Agendas <[email protected]> From: Abello, Emmanuel <
Sent: Friday, March 31, 2023 11:45 AM
Subject: Now Available - Agenda Packets for the April 5, 2023 LAFCO Meeting at 1:15 PM The agenda and staff reports for the April 5, 2023 LAFCO Meeting are now available on the LAFCO website at the weblink below. Please note that this meeting will be held in-person at the Board of Supervisors’ Chambers in the County Government Centers, 70 W. Hedding Street, First Floor, San Jose, California.

Members of the public may participate in person or remotely via teleconference. The agenda provides instructions for remote access and participation.
https://santaclaralafco.org/meetings/commission-meeting-2023-04-05-201500 Thank you,
Emmanuel Abello
Associate Analyst, LAFCO of Santa Clara County
| Mobile: | Twitter: @SantaClaraLAFCO | www.SantaClaraLAFCO.org Public Record: 5
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Fw: Prioritize the safety of our streets for all users and fully fund Vision Zero now.

Some people who received this message don't often get email from Learn why this is important Dear Members of San Jose Council,
I live near Lark ave and ride my bike everywhere because it’s good for my physical and emotional health, the planet and it is so beautiful here in California.

Even though my routes often include Blossom Hill rd, I try to avoid it, some portions of it have a very good bike lane, but some are very narrow, at the same time cars are going very fast. So I try to avoid it if I can. And recent incidents only proved how dangerous this street is.

Also I know there are schools there too: Blossom Hill elementary and Leigh High, both of those my kids attended. I used to live in San Jose near Good Samaritan and my kid was biking to Union Middle School and Leigh High. I'm concerned for kids biking to and from school.

San Jose and Los Gatos council need to invest and collaborate in safe street designs. It is important for San Jose and Los Gatos council to collaborate because of how streets like Blossom Hill Road are affecting our community.

Thanks for working on the bike lanes and safety for our kids and us.

Regards,
Svetlana Furman
Public Record: 6
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FW: Proposed LAFCO Budget for Fiscal Year 2024
City Clerk <[email protected]>
Thu 4/6/2023 11:53 AM
To: Rules and Open Government Committee Agendas <[email protected]> 1 attachments (1 MB)
Notice - Proposed FY2024 LAFCO Budget & June 7 2023 Public Hearing.pdf; From: Abello, Emmanuel <
Sent: Thursday, April 06, 2023 11:49 AM
Subject: Proposed LAFCO Budget for Fiscal Year 2024
The Clerk of the Board of Supervisors, City/Town Clerks and Special District Clerks:

Please distribute to the members of your governing bodies the Proposed LAFCO Budget for Fiscal Year 2023- 2024 and Notice of Public Hearing on June 7, 2023 (attachment).

Thank you,
Emmanuel Abello
Associate Analyst, LAFCO of Santa Clara County
| Mobile: | Twitter: @SantaClaraLAFCO | www.SantaClaraLAFCO.org Public Record: 7
April 6, 2023
TO: County Executive, Santa Clara County
City Managers, Cities in Santa Clara County
District Managers, Special Districts in Santa ClaraCounty FROM: Neelima Palacherla, Executive Officer
SUBJECT: ADOPTION OF PROPOSED BUDGET FOR FISCAL YEAR 2023 & NOTICE OF JUNE 7, 2023 LAFCO PUBLIC HEARING
At its public hearing on April 5, 2023, the Local Agency Formation Commission of Santa Clara County (LAFCO) adopted a Proposed Budget for Fiscal Year 2024, as recommended in the attached staff report. The attached report reviews the status of LAFCO’s current year work plan and budget; and sets forth the proposed work plan and budget for Fiscal Year 2024.

LAFCO is scheduled to consider adoption of its Final Budget at a public hearing on Wednesday, June 7, 2022 at 1:15 PM. The County Auditor will apportion LAFCO costs and invoice the cities, independent special districts and the County based on the Final Budget adopted by LAFCO.

The meeting agenda, staff reports and related meeting material will be available on the LAFCO website by June 2, 2023. All interested persons may attend the meeting as provided for on the agenda. Written public comments may be submitted by email to [email protected] prior to the date of the hearing.

Attachment:

Staff Report on the Proposed Work Plan and Budget for FY 2024 (April 5, 2023) cc: Board of Supervisors, Santa Clara County
City Council Members, Cities in Santa Clara County
Board of Directors, Special Districts in Santa Clara County Santa Clara County Cities Association
Santa Clara County Special Districts Association
PAGE 1 OF 13
ITEM # 7
LAFCO MEETING: April 5, 2023
TO: LAFCO
FROM: Neelima Palacherla, Executive Officer
Dunia Noel, Asst. Executive Officer
SUBJECT: PROPOSED WORK PLAN AND BUDGET FOR FY 2024

FINANCE COMMITTEE / STAFF RECOMMENDATIONS

1. Adopt the Proposed Work Plan for Fiscal Year 2023-2024.

2. Adopt the Proposed Budget for Fiscal Year 2023-2024.

3. Find that the Proposed Budget for Fiscal Year 2024 is expected to be adequate to allow the Commission to fulfill its statutory responsibilities.

4. Authorize staff to transmit the Proposed Budget adopted by the Commission including the estimated agency costs as well as the LAFCO public hearing notice for the adoption of the Fiscal Year 2024 Final Budget to the cities, the special districts, the County, the Cities Association of Santa Clara County and the Santa Clara County Special Districts Association.

ANNUAL BUDGET PROCESS REQUIREMENTS
The Cortese Knox Hertzberg Local Government Reorganization Act of 2000 (CKH Act) which became effective on January 1, 2001, requires LAFCO, as an independent agency, to annually adopt a proposed budget by May 1 and a final budget by June 15 at noticed public hearings. Both the proposed and the final budgets are required to be transmitted to the cities, the special districts and the County. Government Code §56381(a) establishes that at a minimum, the budget must be equal to that of the previous year unless the Commission finds that reduced staffing or program costs will nevertheless allow it to fulfill its statutory responsibilities. Any unspent funds at the end of the year may be rolled over into the next fiscal year budget. After adoption of the final budget by LAFCO, the County Auditor is required to apportion the net operating expenses of the Commission to the agencies represented on LAFCO.

PAGE 2 OF 13
FISCAL YEAR 2023-2024 WORKPLAN & BUDGET DEVELOPMENT

TIMELINE
Dates Staff Tasks / LAFCO Action
March 13 -
April 5
Notice of this public hearing was advertised in a local newspaper, posted on the LAFCO website and distributed to local agencies. The agenda and a link to the posted agenda packet are also distributed to local agencies, interested persons and organizations. The proposed Workplan and Budget are posted on the LAFCO website and available for public review and comment.

April 5 LAFCO public hearing on adoption of Proposed Workplan and Budget
April 6 Proposed Work Plan and Budget, preliminary apportionments and LAFCO public hearing notice for Final Budget Hearing transmitted to agencies
June 7 LAFCO public hearing and adoption of Final Budget June 7 -
July 1
Final Budget transmitted to agencies; Auditor requests payment from agencies

LAFCO FINANCE COMMITTEE
At its February 1, 2023 LAFCO meeting, the Commission appointed Commissioner Melton, Commissioner Beall and Alternate Commissioner Chapman to serve on the Finance Committee.

At its special meeting held on February 27, 2023, the Finance Committee discussed the progress on the current year work plan and the status of the current year budget; and recommended the proposed FY 2024 work plan and budget for consideration and adoption by the full commission.

CURRENT YEAR IN REVIEW
PROGRESS REPORT ON FY 2022-2023 WORK PLAN
LAFCO’s current fiscal year workplan was adopted at a noticed public hearing held on April 6, 2022. Attachment A depicts the current status (through the third quarter of the year) of the 2022-2023 Work Program.

A major component of the current work program involves the ongoing Countywide Fire Service Review. LAFCO retained a new consultant in June 2022 and relaunched its Countywide Fire Service Review. The new consultant is working with LAFCO staff and the service provider agencies to finalize / validate agency profiles after completing an extensive and challenging data collection process. To date, two Technical Advisory Committee meetings have been held to obtain feedback on key PAGE 3 OF 13
aspects including evaluation criteria and preliminary findings. It is anticipated that another Technical Advisory Committee meeting will be held in the next few weeks and a Draft Service Review Report will be published for public review and comment by the end of this fiscal year.

LAFCO has received and /or processed major applications such as a special district sphere of influence amendment/annexation and a city urban service area amendment. Staff has held pre-application meetings and has received and responded to many requests for assistance and expertise from local and regional agencies on a variety of matters related to city service extensions, city annexations/island annexations, special district detachments, and housing element updates. Similarly, responding to public inquiries is another significant and growing area of the workplan and staff has seen an increase in the volume and complexity of such inquiries, including requests for information under the Public Records Act, and information requests from local attorneys, appraisers, real estate agents and developers.

In accordance with the Commission’s directive, as opportunities arise and time permits, staff continues to conduct targeted outreach to various local entities (special districts, County, cities, civil grand jury, and other community organizations/individuals) through informational presentations on LAFCO and its role in promoting sustainable growth and governance in the county.

The Commission has experienced major changes in its membership; in the last two months, 6 new commissioners have come on board and LAFCO will be selecting a new public member and an alternate public member to fill positions due to term expirations in May 2023. Staff conducts onboarding activities and new commissioner orientations for all new appointees.

Other notable administrative activities and projects that have been completed or are currently underway include among others, the annual financial audit, the annual report, required staff training, LaserFische and LAFCO database server upgrades/migrations, transition back to in-person and hybrid meetings to allow for remote public participation, and preparations for webcasting LAFCO meetings.

Notwithstanding the preceding progress on various work plan items, some important, high priority projects such as the comprehensive review and update of LAFCO policies and scanning of LAFCO records have fallen behind and will not be completed by the end of the fiscal year. The delays are partly due to the application workload, increased demand for LAFCO services and staff’s efforts to prioritize and meet the needs of the local agencies and the public; and staffing issues including a vacant position since January 2021. Completion of the County classification study in July 2022 allows LAFCO staff to implement the Study’s recommendations and work with the County Employee Services Agency on recruitment efforts for a new LAFCO Clerk. It is anticipated that the vacant LAFCO Clerk position will be filled by the end of this fiscal year.

PAGE 4 OF 13
The projects in the current workplan that will not be completed by the end of the fiscal year have been added to the proposed FY 2024 workplan.

The LAFCO Annual Report for FY 2023 will be published at the end of the current fiscal year and will document all the applications reviewed and processed by LAFCO in Fiscal Year 2023; and will summarize the various accomplishments, activities/projects that LAFCO has engaged in or completed during the period.

STATUS OF FY 2022-2023 ADOPTED BUDGET
Attachment D includes the FY 2023 budget adopted by the Commission at a noticed public hearing on June 1, 2022, the status of LAFCO’s expenditures and revenues as of February 21, 2023, and expenditure and revenue projections for end of FY 2023.

The adopted LAFCO budget for FY 2023 is $985,974 and reflects a 11% increase compared to the previous fiscal year’s (FY 2022) budgeted operating expenses. It is estimated that the total year-end projected expenditures for FY 2023 would be approximately 13% lower than the adopted budget primarily due to salary savings from the vacant staff position. Staff anticipates that year end revenue for FY 2023 will be slightly lower than the amount budgeted. LAFCO has received the respective FY 2023 funds from the County, the cities and the independent special districts. The actual fund balance rolled over at the end of FY 2022 was significantly higher at $410,027, compared to the amount estimated ($201,006) in the FY 2023 budget.

The excess fund balance and the unspent FY 2023 expenditure amounts will carry over into FY 2024 and will be used to reduce net operating expenses that would in turn translate to reduced FY 2024 costs for contributing agencies.

PROPOSED WORK PLAN FOR FISCAL YEAR 2024
Attachment C includes the proposed work plan for FY 2024, as recommended by the Finance Committee, for consideration and adoption by the full commission.

The proposed workplan includes ongoing as well as new projects and outlines detailed projects/activities organized under six broad areas: (1.) LAFCO application processing; (2.) island annexations; (3.) outreach, government/community relations and customer service; (4.) service reviews, special studies and sphere of influence updates; (5.) commission support; and (6.) administrative projects. The work plan assigns priority levels (high, moderate, low); and designates whether the work is to be conducted by staff or outside consultants.

The proposed work plan includes a broad spectrum of responsibilities that LAFCO, as an independent local agency and as a regulatory body of the state, is expected to fulfil in its role of promoting sustainable growth and good governance in Santa Clara County. It incorporates the Commission’s legislative functions and mandates and also the Commission’s proactive local initiatives and priorities such as its directives for ongoing public outreach and education and its proactive service review and implementation program.

The Finance Committee discussed the possible creation of a LAFCO student internship program and recommended that LAFCO staff contact the County to PAGE 5 OF 13
further explore such a potential initiative. The Committee also discussed a potential strategic planning workshop in the upcoming year and requested opportunities for ongoing commissioner education.

Reduced staffing levels over the last two years have impacted the functioning of the LAFCO office. While the LAFCO Clerk position is expected to be filled in the next several months, actual professional staffing capabilities will be below 4.0 FTE for at least half of the upcoming fiscal year, considering the onboarding and training period for the new staff person.

According to the Comprehensive Organizational Assessment report prepared by LAFCO’s consultant, even the 4.0 FTE staffing level is lower than other LAFCOs with comparable operations. However, in August 2020, the Commission voted to maintain the current 4.0 FTE staffing level given uncertain economic conditions related to the COVID-19 pandemic but kept open the option to consider the potential addition of 1.0 FTE in the future.

Staff actively manages the workload in order to focus on accomplishing essential activities such as processing applications, completing projects currently underway such as the Countywide Fire Service Review, maintaining core administrative functions, tracking on-going projects and studies, supporting the commission and responding to local agency and public requests for assistance. Non-essential activities and other proactive initiatives will need to be deferred until staffing levels/expertise are restored. This is consistent with past practice where LAFCO’s statutorily mandated activities take priority over administrative projects that are not statutorily required, and over proactive commission-initiated projects which are discretionary but support LAFCO’s mission and statutory requirements.

PROPOSED BUDGET FOR FISCAL YEAR 2024
Attachment D includes the proposed Budget for FY 2023-2024 as recommended by the Finance Committee, for consideration and adoption by the full commission. The Finance Committee conducted a thorough review of the work plan and budget and recognized the public benefit of LAFCO’s work and the high demand for LAFCO’s services from local agencies and the public. The Committee maintained its commitment to ensure adequate resources that allow the Commission to fulfill its statutory responsibilities and accomplish its work plan while also limiting costs for LAFCO’s funding agencies The overall expenditure for FY 2024 ($1,296,000) in the proposed budget is approximately 6% higher than the current year budgeted expenses ($1,222,980).

Projected current year cost savings (such as from salary savings), and a larger than estimated fund balance from FY 2022 are expected to result in a $366,814 fund balance at the end of the current year – and will be used to reduce net operating expenses in FY 2024.

LAFCO’s proposed net operating expense for FY 2024 is 9% lower than the FY 2023 budgeted net operating expense and is similar to the FY 2022 level.

PAGE 6 OF 13
DESCRIPTION OF FY 2023-2024 BUDGET LINE ITEMS
LAFCO and the County of Santa Clara entered into a Memorandum of Understanding (MOU) (effective since July 2001), under the terms of which, the County provides staffing, facilities, and services to LAFCO. The associated costs are reflected in the proposed LAFCO budget. LAFCO is a stand-alone, separate fund within the County’s accounting and budget system and the LAFCO budget information is formatted using the County’s account descriptions/codes.

The following is a detailed itemization of the proposed budget.

EXPENDITURES
Expenditures are divided into two main sections: Staff Salary and Benefits (Object 1) which comprise 68% of the total expenditures, and Services and Supplies (Object 2).

OBJECT 1. SALARIES AND BENEFITS $882,121
This line item supports the salary and benefits for the 4.0 FTE positions including the Executive Officer position, a Senior Analyst position, an Associate Analyst position, and a Clerk position. The Clerk position is currently vacant and is anticipated to be filled by the end of the current fiscal year. LAFCO contracts with the County of Santa Clara for staffing and services and in accordance with the MOU between the County and LAFCO, all four positions are staffed through the County Executive’s Office. The proposed amount is based on the best available projections from the County at this time for salary and benefits for the 4 positions. Changes to the projections for the four positions that occur within the next couple of months will be reflected in the Final LAFCO budget.
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Budgeted Net Operating Expenses
PAGE 7 OF 13
OBJECT 2. SERVICES AND SUPPLIES
5255100 Intra-County Professional $10,000
This includes the costs for services from various County agencies such as the County Surveyor’s Office, the County Assessors’ Office, and the Registrar of Voters. The County Surveyor assists with map review and approval for boundary change proposals. In addition, the Surveyor’s Office also assists with research to resolve boundary discrepancies. The County Assessor’s Office prepares reports for LAFCO and the Registrar of Voters provides data necessary for processing LAFCO applications. This item also allows LAFCO to seek GIS mapping services including maintenance and technical assistance from the County Planning Office, as necessary.

This budgeted amount has been maintained at the same level as the current year. 5255800 Legal Counsel $82,780
This item covers the cost for general legal services.

In February 2009, the Commission retained the firm of Best Best & Krieger for legal services on a monthly retainer. The contract was amended in 2010 to reduce the number of total hours required to 240 hours per year. The contract sets the hourly rate and allows for an annual automatic adjustment to the rates based on the Consumer Price Index (CPI). In 2017, the contract was once again amended to increase the monthly retainer cost and limit the CEQA work within the retainer to 24 hours annually. Any additional CEQA work above 24 hours would be charged outside the retainer at the same hourly rate.

The monthly retainer for FY 2024 increases to $6,630, based on a 5.6% increase in the Consumer Price Index for the prior calendar year (2022). This item covers the annual retainer fees and includes additional monies to cover approximately 10 hours of work outside the retainer at the current hourly rate of $316. 5255500 Consultant Services $150,000
This item is budgeted for hiring consultants to assist LAFCO with special projects such as for conducting service reviews and special studies, facilitating a strategic planning workshop, scanning LAFCO’s hardcopy records into the existing electronic document management system, meeting broadcast services for LAFCO meetings and for conducting the annual financial audit, among others. The Commission must take action to authorize such special projects prior to expending funds. This item also includes costs associated with ongoing existing contracts such as costs for maintenance and hosting of the LAFCO website by an outside provider. The Finance Committee recommended that an amount of $6,000 be allocated under this item to cover a potential future student internship program cost. 5285700 Meal Claims $750
This item includes cost of food to support Commission events, workshops, meetings. 5220200 Insurance $8,335
This item is for the purpose of purchasing general liability insurance and workers’ compensation coverage for LAFCO. In 2010, LAFCO switched from the County’s PAGE 8 OF 13
coverage to the Special District Risk Management Authority (SDRMA), for the provision of general liability insurance. Additionally, LAFCO also obtains workers’ compensation coverage for its commissioners from SDRMA. Workers’ compensation for LAFCO staff is currently covered by the County and is part of the payroll charge.

SDRMA has recently provided estimated FY 2024 contribution amounts for use in the budgeting process: Property Liability ($7,225) and Workers’ Compensation ($1,100). SDRMA is in the process of negotiating rates on behalf of its program membership and expects to confirm rates in mid-May. The Final budget will reflect any major revisions to these estimates.
5270100 Rent & Lease $54,766
This item includes FY 2024 monthly rent for LAFCO office space located at 777 North First Street, Suite 420, San Jose. The original lease term expired on May 5, 2022. At its February 2, 2022 meeting, the Commission authorized the extension of the lease for a five-year period through April 30, 2027. 5250100 Office Expenses $5,000
This item includes funds for purchase of books, subscriptions/publications necessary to keep current on laws and trends; small equipment and supplies for office operations, including printer/photocopier lease. 5255650 Data Processing Services $27,520
This item includes estimated costs associated with County Technology Solutions & Services Department (TSS) providing IT services to the LAFCO program. According to TSS, the projected costs cover Telecom services for 5 phones- VOIP/Landline ($3,000), Wireless Carrier Service ($144), MS Adobe special order, Acrobat Pro and MS Visio monthly subscription ($2,480), and other services ($21,896) comprising Enterprise Content Management services and solutions, Kronos support, Architecture and Innovation Services, Claranet services, Data Analytics and Visualizations, digital print and sccLearn. Any further revised cost estimates received from the County will be reflected in the Final LAFCO budget. 5225500 Commissioner’s Fees $10,000
This item covers the $100 per diem amount for LAFCO commissioners and alternate commissioners to attend LAFCO meetings and committee meetings. 5260100 Publications and Legal Notices $1,000
This item is for costs associated with publication of hearing notices for LAFCO applications and other projects/ studies, as required by state law. This budgeted amount has been maintained at the same level as the current year. 5245100 Membership Dues $13,870
This item includes CALAFCO – the California Association of LAFCOs membership dues. At its meeting on February 17, 2023, the CALAFCO Board approved an 8.27% rate adjustment to account for inflation in accordance with the CALAFCO Bylaws.

The FY 2024 membership dues for Santa Clara LAFCO is $12,221.

PAGE 9 OF 13
Additionally, this item includes estimated membership dues for CSDA – the California Special Districts Association. In June 2018, CSDA informed that Santa Clara LAFCO as a customer of SDRMA, must be a member of CSDA pursuant to SDRMA bylaws.
5250750 Printing and Reproduction $1,500
This covers printing expenses for reports such as service reviews or other studies and documents.
5285800 Business Travel $15,900
This item includes funding for staff and commissioners to attend conferences and workshops. It would cover costs of air travel, accommodation, conference registration and other expenses at the conferences. CALAFCO annually holds a Staff Workshop (location TBD, April 2024) and an Annual Conference (Monterey, October 2023) that is attended by commissioners as well as staff. 5285300 Private Automobile Mileage $1,000
This item provides for mileage reimbursement when staff travels by private car to conduct site visits and attend meetings / training sessions. This budgeted amount has been maintained at the same level as the current year. 5285200 Transportation and Travel (for use of County car) $600 This item would cover costs associated with the use of a County vehicle for travel to conferences, workshops, site visits and meetings.
5281600 Overhead $20,358
This overhead charge is established by the County Controller’s Office, for service rendered by various County departments that do not directly bill LAFCO. The overhead includes LAFCO’s share of the County’s FY 2024 Cost Allocation Plan which is based on actual overhead costs from FY 2022 – the most recent year for which actual costs are available. The overhead amount includes the following charges from:

County Executive’s Office: $6,653
Controller-Treasurer: $11,003
Employee Services Agency: $6,072
OBA: $357
BHS-MH - Employee: $198
TSS Intragovernmental Service: $958
Technology Services & Solutions: $1,710
Procurement: $57
Equal Opp. (County Counsel): $809
CoB – Harvey Rose Mgt Audit: $22
PAGE 10 OF 13
Further, a “roll forward” is applied which is calculated by comparing FY 2022 Cost Plan estimates with FY 2022 actuals. The FY 2022 cost estimates were higher than the actuals by $7,480; this amount is deducted from the FY 2024 Cost Plan. This is a state requirement.
5275200 Computer Hardware $3,000
This item is designated for any required hardware upgrades / purchases. 5250800 Computer Software $5,000
This amount is designated for computer software purchases, and annual licenses for GIS software and records management (LaserFische) hardware/software annual maintenance agreement.
5250250 Postage $500
This amount covers postage costs for mailing notices, agendas, agenda packets and general correspondence.
5252100 Training Programs $2,000
This item covers the costs associated with attendance at staff development courses and seminars. CALAFCO conducts University Courses throughout the year on topics of relevance to LAFCO.

REVENUES
4103400 Application Fees $30,000
It is anticipated that LAFCO will receive approximately $30,000 in fees from processing applications. The actual amount earned from fees corresponds to the level of application activity.
4301100 Interest $6,000
It is estimated that LAFCO will receive an amount of approximately $6,000 from interest earned on LAFCO funds.
3400150 Fund Balance from Previous Fiscal Year (i.e, FY 2023) $366,814 It is projected that there will be a savings or fund balance of approximately $366,814 at the end of the current year, which will be carried over to reduce the proposed Fiscal Year 2024 costs for LAFCO’s funding agencies (cities, independent special districts and the County).

Projected Year-End [FY 2023] Fund Balance = (Projected Year-End [FY 23] Revenue + Actual Fund Balance from Previous Fiscal Year [FY 22] + Funds Received from Local Agencies in FY 23) - (Projected Year-End [FY 23] Expenses) = ($31,000+ $410,027 + $985,974) - $1,060,187
= $366,814
The fund balance excludes the reserves.

PAGE 11 OF 13

RESERVES
3400800 Reserves Available $200,000
This item includes reserves for two purposes: litigation reserve – for use if LAFCO is involved with any litigation; and contingency reserve – to be used for unexpected expenses. If used during the year, this account will be replenished in the following year. Since 2012, the reserves have been retained in a separate Reserves account, thus eliminating the need for LAFCO to budget each year for this purpose.

The Reserves amount was held at $250,000 since FY 2020 to timely implement potential recommendations from the Comprehensive Organizational Assessment, and as a tentative measure in recognition that LAFCO operates in an increasingly complex and controversial environment.

In FY 2022, LAFCO reduced the Reserves from $250,000 to $200,000, in order to further reduce costs to local agencies given the COVID -19 related economic hardships; and maintained the reserve level at $200,000 in FY 2023. The Finance Committee recommends maintaining the current level of reserves for FY 2024. This places the proposed Reserve amount at approximately 15% of the total FY 2024 expenditures. LAFCO has not adopted a Reserves policy, however as an independent agency, LAFCO should maintain sufficient reserves for flexibility and stability in the event of unanticipated needs.

FY 2024 NET OPERATING EXPENSES
FY 2024 Net Operating Expenses = (Proposed FY 2024 Expenditures) - (Proposed FY 2024 Fee & Interest Revenues + Projected Fund Balance from FY 2023) = ($1,296,000) – ($36,000 + $366,814)
= $893,186
The projected operating expense for FY 2024 is based on projected expenditures and revenues as well as on estimated fund balance for the current year. Further revisions may be needed as we get a better indication of current year expenses/revenues towards the end of this fiscal year. Additionally, a more accurate projection of costs/revenues for the upcoming fiscal year could become available, particularly for employee salary and benefits. This could result in changes to the proposed net operating expenses for FY 2024 which could in turn impact the costs for each of LAFCO’s funding agencies.

COST APPORTIONMENT TO CITIES, INDEPENDENT SPECIAL DISTRICTS

AND COUNTY
In January 2013, independent special districts were seated on LAFCO. Government Code §56381(b)(1)(A) provides that when independent special districts are represented on LAFCO, the county, cities and independent special districts must each provide a one-third share of LAFCO’s operational budget.

The City of San Jose has permanent membership on LAFCO pursuant to Government Code Section 56327. As required by Government Code §56381.6(b), the City of San PAGE 12 OF 13
Jose’s share of LAFCO costs must be in the same proportion as its member bears to the total membership on the commission, excluding the public member. The remaining cities’ share must be apportioned in proportion to each city’s total revenues, as reported in the most recent edition of the Cities Annual Report published by the Controller, as a percentage of the combined city revenues within a county.

Government Code Section §56381 provides that the independent special districts’ share shall be apportioned in proportion to each district’s total revenues as a percentage of the combined total district revenues within a county. The Santa Clara County Special Districts Association (SDA), at its August 13, 2012 meeting, adopted an alternative formula for distributing the independent special districts’ share to individual districts. The SDA’s agreement requires each district’s cost to be based on a fixed percentage of the total independent special districts’ share.

Therefore, in Santa Clara County, the County pays a third of LAFCO’s operational costs, the independent special districts pay a third, the City of San Jose pays one sixth and the remaining cities pay one sixth. Government Code §56381(c) requires the County Auditor to request payment from the cities, independent special districts and the County no later than July 1 of each year for the amount each agency owes based on the net operating expenses of the Commission and the actual administrative costs incurred by the Auditor in apportioning costs and requesting payment.

The following is a draft apportionment to the agencies based on the proposed net operating expenses for FY 2024.

Apportionment of the costs among the 14 cities and among the 17 independent special districts will be calculated by the County Controller’s Office after LAFCO adopts the final budget in June. In order to provide each of the cities and districts $297,729
$297,729
$148,864
$148,864
Proposed FY 2024 LAFCO Cost Apportionments
County Independent Special Districts Other Cities City of San Jose PAGE 13 OF 13
with a general indication of their costs in advance, Attachment E includes draft estimated apportionments, based on the proposed FY 2024 net operating expenses and the FY 2020-2021 Cities Annual Report. The final apportionments will be prepared by the County Controller’s Office based on the latest available Cities Annual Report.

ATTACHMENTS
Attachment A: Status of FY 2023 Work Plan
Attachment B: LAFCO Financials 2008-2022
Attachment C: Proposed Work Plan for Fiscal Year 2024
Attachment D: Proposed LAFCO Budget for Fiscal Year 2024 Attachment E: Estimated FY 2024 Costs to Agencies
STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2023)
PAGE 1 of 7
PRIORITY* H - High Priority (essential activities: state mandate, Commission directive, requirements) M - Medium Priority (important, provided resources allow or time permits) L - Low Priority (desirable provided resources allow or time permits, not urgent) PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* STATUS

LAFCO APPLICATIONS
Process applicant-initiated LAFCO
proposals
Encourage pre-application meetings
prior to application submittal
Conduct pre-agenda meetings with
County Depts to obtain Assessor &
Surveyor reports, as needed
Process applications per CKH Act
requirements: issue Notice of
Application, Certificate of Filing /
Sufficiency, Public Hearing Notice, staff
report, conduct protest proceedings, as
needed
Staff H Several preapplication
meetings held
(Monte Sereno,
Sunnyvale/Cuper
tino Sanitary
District, WVSD,
San Jose)
3 city conducted
and a SOI
amendment/
annexation
application
completed, one
USA amendment
in progress
Comment on potential LAFCO applications,
relevant projects & development proposals,
city General Plan updates and/ or related
environmental documents
Ongoing, as needed Staff H Ongoing
County Housing
Element
Review and update LAFCO policies for
context, clarity and consistency with State
law
In progress Staff /
Consultant
H In progress
Prepare flowcharts for LAFCO processes
and update application packets for current
requirements and ease of public use
Upon completion of policies update Staff L Internal
application
processing
checklists
updated
ITEM # 7
Attachment A
STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2023)
PAGE 2 of 7
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* STATUS

ISLAND ANNEXATIONS
Conduct outreach to cities with islands,
follow up on responses including
review/research of city limits/ USA
boundaries, provide assistance with
annexations or necessary USA amendments
Prepare and distribute island maps to
cities
Staff L As needed
Facilitate interagency discussions to
support remaining island annexations
Monte Sereno Staff H As needed,
pending city
initiation
Review and finalize city-conducted island
annexations
Ongoing, as needed Staff H As needed

OUTREACH, GOVERNMENT / COMMUNITY

RELATIONS & CUSTOMER SERVICE

CUSTOMER SERVICE
Conduct outreach to increase awareness of
LAFCO’s role
Presentations to cities, other agencies
on LAFCO, as relevant
Distribute LAFCO communications
material to elected officials and staff of
cities, special districts and the County
Seek exhibit opportunities at public
spaces / events
Maintain website as the primary
information resource on LAFCO
Increase social media presence
(Twitter)
Staff L
M
L
H
L
Presentations
provided upon
request (Grand
Jury, Leadership
Sunnyvale, San
Jose Planning)
Website updated
Engage and establish relationships with
local (cities, districts, county), regional
(ABAG/MTC), state (SGC, OPR, DoC,
SWRCB) agencies, organizations such as
SDA, SCCAPO, CALAFCO, other
stakeholder groups
Attend regular meetings of SDA
(quarterly), SCCAPO (monthly), County
Planning Dept.(quarterly)
Small water systems issues / legislation
Collaborate with agencies and entities
with goals common to LAFCO
Staff M
M
M
Ongoing
STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2023)
PAGE 3 of 7
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* STATUS
Track LAFCO related legislation EO attends CALAFCO Legislative Committee
Commission takes positions and submit
letters on proposed legislation
Staff L
M
EO served on the
Legislative
Committee until
October 2021
Respond to public enquiries re. LAFCO
policies, procedures and application filing
requirements
Timely response to public inquiries
Update the PRA form for the website
Document research on complex
inquiries
Report to Commission on complex
inquiries
Staff H
L
L
H
Ongoing
High volume of
enquiries

SERVICE REVIEWS, SPECIAL STUDIES &

SPHERE OF INFLUENCE UPDATES
Countywide Fire Service Review Manage new consultant’s work and contract
Coordinate TAC meetings
Attend stakeholder interviews with
consultant
Work with consultant on any data
collection issues
Review and comment on administrative
draft reports
Distribute Public hearing notices and
coordinate community workshops and
public hearings
Prepare and distribute
stakeholder/public outreach material
Coordinate stakeholder / public
engagement process
Prepare staff reports with
implementation recommendations
Staff /
Consultant
H Working with
new consultant
on data collection
and profiles
preparation,
review and
comment
Conducted 2 TAC
meetings
STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2023)
PAGE 4 of 7
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* STATUS
Follow up with agencies and report back
to the commission
Continue to monitor implementation of
recommendations from previous service
reviews and conduct special studies, as
necessary
RRRPD study – city took action to delay
decision on consolidation
Staff L Pending city
action
Map Mutual Water companies Initial maps complete, further work through service review
Staff L As needed
Engage in or support grant / partnership
opportunities on issues related to enhancing
viability of agriculture, and climate smart
growth
As needed, and as opportunities arise Staff L As needed Compile and post JPA filings on the LAFCO
website
Notice provided, gather JPA information
through service review process
Staff L Ongoing

COMMISSION SUPPORT
Provide ongoing support to the 12
commissioners for regularly-scheduled
Commission meetings, special meetings and
Committee meetings (Finance Committee,
Ad Hoc Committee on Organizational
Assessment and the Fire Service Review
TAC)
Prepare and distribute public hearing
notices and agenda packets, provide
staff support during the meetings,
record minutes, broadcast meetings
Hold pre-agenda review meeting with
Chair
Hold pre-meeting calls with individual
commissioners to address agenda item
questions
Process commissioner per diems for
attendance at LAFCO meetings
Staff H Ongoing
Keep the Commission informed EO report
off-agenda emails, as needed
Staff H Ongoing
STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2023)
PAGE 5 of 7
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* STATUS
Onboarding new Commissioners Facilitate filing / completion of Form 700, commissioner pledge, ethics
training.

Update LAFCO letterhead, directory, and
website
Set up vendor accounts, provide parking
permits
Conduct new Commissioner orientation
Recognize outgoing commissioners for
service on LAFCO
Staff H Five new
commissioners;
one position
remains vacant at
this time
Onboarding,
orientations
completed for 4;
one in progress
LAFCO past,
present, future:
guest
presentation at
2/1 LAFCO
meeting
Commissioners Selection Process Inform appointing bodies of any upcoming vacancies and provide
information on appointment criteria
Convene ISDSC committee meeting, as
necessary
Coordinate public member selection
process, as necessary
Staff H Initiated process
for selection of
new public
member and
alternate public
member
Conduct a Strategic Planning Workshop 2018 Workshop re. LAFCO Communications and Outreach Plan
Staff /
Consultant
L On hold
Commissioner participation in CALAFCO Support commissioner participation in CALAFCO activities / or election to the
CALAFCO Board
Staff L 2 commissioners
attended
CALAFCO Annual
Conference
STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2023)
PAGE 6 of 7
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* STATUS

ADMINISTRATIVE PROJECTS
Prepare LAFCO annual work plan March –June Staff H In progress Prepare LAFCO annual budget March –June Staff H In progress Prepare LAFCO Annual Report August 2022 Staff H Completed Prepare LAFCO Annual Financial Audit October 2022 (Contract with Chavan Associates extended for FY 2023 and FY
2024)
Consultant /
Staff
H Completed
Office / facility management Coordinate with Building Manager on facilities issues
Coordinate with County re.
computers/network, phone, printers,
office security, procurement ,
installation & maintenance
Order and manage office supplies
Make travel arrangements and process
expense reimbursements.

Process mileage reimbursements
Office space lease extended (lease
extended through April 30, 2027)
Staff H Ongoing
Transitioning to
in-person /
hybrid meetings
Coordinating with
County for
webcasting
LAFCO meetings
Records management Organize scan of LAFCO records to
Electronic Document Management
System (LaserFische)
Maintain LAFCO’s hard copy records
Maintain and enhance the LAFCO
Website
Maintain LAFCO database
Staff/
Consultant
Staff
H
H
H
H
On hold
Completed
LaserFische and
LAFCO database
server migrations
Website content
updates
completed
STATUS OF CURRENT YEAR WORK PLAN (FISCAL YEAR 2023)
PAGE 7 of 7
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* STATUS
Contracts and payments & receivables Track consultant contracts and approve invoices
Approve vendor invoices / process
annual payments for various services/
memberships
Coordinate with County Controller’s
Office and track annual collection of
payments from member agencies
Staff H Ongoing
Review and update LAFCO bylaws /
administrative policies and procedures
Ongoing, as needed Staff H Ongoing
Staff training and development CALAFCO workshops, conferences, relevant courses
Staff M Staff registered
for CALAFCO
Workshop
Coordinate with County on administrative
issues
Attend monthly meetings with the
Deputy County Executive
Staff H Ongoing
Staff performance evaluation April – October 2022 Staff/ Commission
H Completed in
February 2023
Comprehensive Organizational Assessment
Study – implementation
As needed Staff/
Commission
H LAFCO/County
MOU to be
revised
Recruitment and training of LAFCO staff One LAFCO Analyst position currently vacant – recruitment pending County
Classification study results
Staff H Begin LAFCO
Clerk
recruitment
Other administrative functions mandated of
a public agency (Form 700 annual filing &
AB 1234 training compliance, Form 806,
maintaining liability/workers comp
insurance, etc.)
Ongoing Staff H Ongoing

ADMINISTRATIVE PROJECTS
FY 2008 - FY 2022 LAFCO FINANCIALS
February 2023
ITEM NO. TITLE

ACTUALS
FY 2008

ACTUALS
FY 2009

ACTUALS
FY 2010

ACTUALS
FY 2011

ACTUALS
FY 2012

ACTUALS
FY 2013

ACTUALS
FY 2014

ACTUALS
FY 2015

ACTUALS
FY 2016

ACTUALS
FY 2017

ACTUALS
FY 2018

ACTUALS
FY 2019

ACTUALS
FY 2020

ACTUALS
FY 2021

ACTUALS
FY 2022

EXPENDITURES
Salary and Benefits $356,009 $400,259 $406,650 $413,966 $393,194 $411,929 $450,751 $466,755 $484,216 $514,381 $628,534 $713,900 $744,439 $730,716 $639,099 Object 2: Services and Supplies
5255100 Intra-County Professional $66,085 $57,347 $13,572 $4,532 $6,118 $5,260 $5,663 $4,379 $18,523 $1,292 $703 $3,593 $346 $201 $354 5255800 Legal Counsel $0 $9,158 $67,074 $52,440 $48,741 $56,791 $53,550 $52,854 $57,498 $71,131 $59,400 $72,276 $69,975 $65,791 $78,977 5255500 Consultant Services $19,372 $75,000 $76,101 $58,060 $102,349 $59,563 $35,602 $37,250 $39,625 $0 $45,000 $52,650 $106,709 $41,966 $25,389 5285700 Meal Claims $0 $368 $277 $288 $379 $91 $228 $209 $367 $50 $901 $257 $166 $0 $56 5220100 Insurance $491 $559 $550 $4,582 $4,384 $4,378 $4,231 $4,338 $4,135 $4,679 $4,893 $5,296 $5,893 $10,452 $8,591 1151 Office Expenses $1,056 $354 $716 $639 $1,212 $536 $850 $783 $6,266 $48,632 $15,412 $4,702 $2,544 $1,151 $1,462 5270100 Rent and Lease $41,120 $39,360 $44,478 $46,254 $47,903 5255650 Data Processing Services $8,361 $3,692 $3,505 $1,633 $3,384 $1,663 $3,311 $9,024 $1,519 $6,869 $877 $11,894 $15,500 $21,223 $18,125 5225500 Commissioners' Fee $5,700 $5,400 $3,500 $3,400 $4,000 $4,900 $5,800 $4,900 $6,700 $5,300 $5,400 $5,000 $4,600 $6,100 $4,200 5260100 Publications and Legal Notices $1,151 $563 $1,526 $363 $916 $222 $378 $2,484 $487 $191 $145 $192 $44 $90 $704 5245100 Membership Dues $5,500 $7,000 $7,000 $7,000 $7,000 $14,473 $0 $7,428 $7,577 $8,107 $8,674 $9,615 $11,822 $12,144 $12,316 5250750 Printing and Reproduction $5 $0 $0 $0 $0 $0 $9 $177 $703 $0 $0 $0 $799 $0 $0 5285800 Business Travel $7,238 $8,415 $4,133 $8,309 $3,095 $4,777 $5,800 $4,042 $5,811 $3,877 $13,091 $4,260 $6,908 $0 $0 5285300 Private Automobile Mileage $1,016 $704 $832 $1,185 $615 $424 $409 $396 $1,009 $1,264 $590 $689 $696 $61 $0 5285200 Transportation&Travel (County Car Usage) $894 $948 $629 $0 $384 $250 $371 $293 $559 $605 $0 $328 $256 $0 $0 5281600 Overhead $42,492 $62,391 $49,077 $46,626 $60,647 $43,133 $42,192 $34,756 $49,452 $0 $28,437 $69,944 $4,505 $30,917 $49,173 5275200 Computer Hardware $0 $451 $0 $83 $2,934 $1,791 $2,492 $0 $106 $0 $0 $773 $0 $0 $0 5250800 Computer Software $0 $0 $626 $314 $579 $3,124 $933 $1,833 $2,079 $754 $4,505 $3,012 $1,200 $4,708 $1,753 5250250 Postage $1,160 $416 $219 $568 $309 $589 $246 $597 $411 $209 $183 $117 $73 $184 $159 5252100 Staff Training Programs $0 $665 $491 $250 $300 $0 $0 $1,431 $0 $0 $0 $350 $525 $70 $70 5701000 Reserves $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL EXPENDITURES $516,530 $633,691 $636,478 $604,238 $640,540 $613,895 $612,816 $633,929 $687,043 $667,342 $857,865 $998,208 $1,021,478 $972,028 $888,331

REVENUES
4103400 Application Fees $46,559 $41,680 $35,576 $48,697 $37,426 $45,458 $63,561 $27,386 $146,168 $20,436 $29,864 $33,049 $7,587 $34,622 $41,847 4301100 Interest: Deposits and Investments $24,456 $16,230 $6,688 $4,721 $4,248 $3,416 $2,674 $2,844 $6,073 $10,830 $12,620 $12,141 $18,176 $10,488 $7,831 TOTAL REVENUES $71,015 $57,911 $42,264 $53,418 $41,674 $48,873 $66,235 $30,230 $152,241 $31,266 $42,484 $45,190 $25,763 $45,110 $49,678 3400150

AVAILABLE FUND BALANCE
END OF YEAR $271,033 $368,800 $334,567 $275,605 $209,987 $208,219 $160,052 $226,111 $187,310 $293,489 $331,177 $314,693 $352,123 $312,351 $410,027 3400800 RESERVES AVAILABLE $100,000 $100,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $150,000 $250,000 $250,000 $200,000

BUDGETED COSTS TO AGENCIES
5440200 County $271,641 $270,896 $267,657 $292,601 $298,597 $281,780 $156,002 $187,521 $220,668 $225,778 $266,298 $277,942 $381,904 $327,928 $295,443 4600100 Cities (San Jose 50% +other cities 50%) $271,641 $270,896 $267,657 $292,601 $298,597 $282,625 $156,002 $187,521 $220,668 $225,778 $266,298 $277,942 $381,904 $327,928 $295,443 4600100 Special Distrcits $296,892 $187,521 $220,668 $225,778 $266,298 $277,942 $381,904 $327,928 $295,443 ITEM # 7
Attachment B
PROPOSED WORK PLAN FOR FISCAL YEAR 2024
PAGE 1 OF 6
PRIORITY* H - High Priority (essential activities: state mandate, Commission directive, requirements) M - Medium Priority (important, provided resources allow or time permits) L - Low Priority (desirable provided resources allow or time permits, not urgent) PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY*

ANNEXATIONS
Conduct outreach to cities with islands,
follow up on responses including
review/research of city limits/ USA
boundaries, provide assistance with
annexations or necessary USA amendments
Prepare and distribute island maps to cities Staff L
Review and finalize city-conducted island
annexations
Ongoing, as needed Staff H
ITEM # 7
Attachment C
PROPOSED WORK PLAN FOR FISCAL YEAR 2024
PAGE 2 OF 6
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY*

OUTREACH, GOVERNMENT / COMMUNITY RELATIONS &

CUSTOMER SERVICE
Conduct outreach to increase awareness of
LAFCO’s role
Presentations to cities, other agencies on LAFCO, as
relevant
Distribute LAFCO communications material to elected
officials and staff of cities, special districts and the County
Seek exhibit opportunities at public spaces / events
Maintain website as the primary information resource
on LAFCO
Increase social media presence (Twitter)
Staff L
M
L
H
L
Engage and establish relationships with local
(cities, districts, county), regional
(ABAG/MTC), state (SGC, OPR, DoC,
SWRCB) agencies, organizations such as SDA,
SCCAPO, CALAFCO, other stakeholder
groups
Attend regular meetings of SDA (quarterly), SCCAPO
(monthly), County Planning Dept.(quarterly)
Small water systems issues / legislation
Collaborate with agencies and entities with goals
common to LAFCO
Staff M
M
M
Track LAFCO related legislation EO attends CALAFCO Legislative Committee meetings Commission takes positions and submits letters on
proposed legislation
Staff L
M
Respond to public enquiries re. LAFCO
policies, procedures and application filing
requirements
Timely response to public inquiries
Update the PRA form for the website
Document research on complex inquiries
Report to Commission on complex inquiries
Staff H
L
L
H
PROPOSED WORK PLAN FOR FISCAL YEAR 2024
PAGE 3 OF 6
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY*

SERVICE REVIEWS, SPECIAL STUDIES &

SPHERE OF INFLUENCE UPDATES
Countywide Fire Service Review Manage new consultant’s work and contract Coordinate TAC meetings
Review and comment on administrative draft report
Distribute Public hearing notices and coordinate
community workshops and LAFCO public hearings
Prepare and distribute stakeholder/public outreach
material
Coordinate stakeholder / public engagement process
along with public comment and response process
Prepare staff reports with implementation
recommendations
Follow up with agencies on implementation and
report back to the commission
Staff / Consultant H
Countywide Water and Wastewater Service
Review
Develop water/wastewater service review workplan
and identify method for consultant selection
Staff M
Continue to monitor implementation of
recommendations from previous service
reviews and conduct special studies, as
necessary
RRRPD study – city took action to delay decision on
consolidation
Staff L
Map Mutual Water companies Initial maps complete, further through service review Staff L Engage in or support grant / partnership
opportunities on issues related to enhancing
viability of agriculture, and climate smart
growth
As needed, and as opportunities arise Staff L
Compile and post JPA filings on the LAFCO
website
Notice provided, gather JPA information through
service review process
Staff L
PROPOSED WORK PLAN FOR FISCAL YEAR 2024
PAGE 4 OF 6
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY*

COMMISSION SUPPORT
Provide ongoing support to the 12
commissioners for regularly-scheduled
Commission meetings, special meetings and
Committee meetings (Finance Committee,
and the Fire Service Review TAC)
Prepare and distribute public hearing notices and
agenda packets, provide staff support during the
meetings, record minutes, broadcast meetings
Hold pre-agenda review meeting with Chair
Hold pre-meeting calls with individual commissioners
to address agenda item questions and prepare
meeting script for Chair
Process commissioner per diems for attendance at
LAFCO meetings
Staff H
Keep the Commission informed EO report
Off-agenda emails, as needed
Provide ongoing educational opportunities/events
Staff H
Onboarding new Commissioners Facilitate filing / completion of Form 700, commissioner pledge, ethics training
Update LAFCO letterhead, directory, and website
Set up vendor accounts, provide parking permits
Conduct new Commissioner orientation
Recognize outgoing commissioners for LAFCO service
Staff H
Commissioners Selection Process Inform appointing bodies of any upcoming vacancies and provide information on appointment criteria
Convene ISDSC committee meeting, as necessary
Coordinate public member selection process, as
necessary
Staff H
Conduct a Strategic Planning Workshop Most recent workshop in 2018 re. LAFCO Communications and Outreach Plan
Staff / Consultant L
Commissioner participation in CALAFCO Support commissioner participation in CALAFCO activities / or election to the CALAFCO Board
Staff L
PROPOSED WORK PLAN FOR FISCAL YEAR 2024
PAGE 5 OF 6
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY*

ADMINISTRATIVE PROJECTS
Prepare LAFCO annual work plan March –June Staff H
Prepare LAFCO annual budget March –June Staff H
Prepare LAFCO Annual Report August 2023 Staff H
Prepare LAFCO Annual Financial Audit October 2023 (Contract with Chavan Associates extended for FY 2023 and FY 2024)
Consultant / Staff H
Office / facility management Coordinate with Building Manager on facilities issues Coordinate with County re. computers/network,
phone, printers, office security, procurement,
installation & maintenance
Order and manage office supplies
Make travel arrangements and process expense
reimbursements.

Process mileage reimbursements
Office space lease extended (lease extended through
April 30, 2027)
Staff H
Records management Organize scan of LAFCO records to Electronic Document Management System (LaserFische)
Maintain LAFCO’s hard copy records
Maintain and enhance the LAFCO Website
Maintain LAFCO database
Staff/ Consultant
Staff
H
H
H
H
Contracts and payments & receivables Track consultant contracts and approve invoices Approve vendor invoices / process annual payments
for various services/ memberships
Coordinate with County Controller’s Office and track
annual collection of payments from member agencies
Staff H
Review and update LAFCO bylaws /
administrative policies and procedures
Ongoing, as needed Staff H
PROPOSED WORK PLAN FOR FISCAL YEAR 2024
PAGE 6 OF 6
PROJECT DESCRIPTION ACTIVITIES / TIMELINE RESOURCES PRIORITY* Staff training and development CALAFCO workshops, conferences, relevant courses Staff M Coordinate with County on administrative
issues
Attend monthly meetings with the Deputy County
Executive
Staff H
Staff performance evaluation April - October 2023 Staff/Commission H Recruitment, hiring, and training of LAFCO
staff
Training of new LAFCO Clerk - recruitment and hiring
expected by end of FY 2023
Staff H
Student internship program Contact the County to explore creation of a paid student internship program
Staff L
Other administrative functions mandated of a
public agency (Form 806, maintaining
liability/workers comp insurance, etc.)
Ongoing Staff H

ADMINISTRATIVE PROJECTS

PROPOSED LAFCO BUDGET
FISCAL YEAR 2023- 2024
ITEM # TITLE

APPROVED
BUDGET
FY 2023

ACTUALS
Year to Date
2/21/2023

PROJECTIONS
Year End
FY 2023

PROPOSED
BUDGET
FY 2024

EXPENDITURES
Object 1: Salary and Benefits $810,419 $403,351 $719,768 $882,121 Object 2: Services and Supplies
5255100 Intra-County Professional $10,000 $0 $10,000 $10,000 5255800 Legal Counsel $78,326 $42,043 $75,500 $82,780
5255500 Consultant Services $150,000 $22,552 $100,000 $150,000 5285700 Meal Claims $750 $56 $300 $750
5220100 Insurance $9,237 $7,042 $9,237 $8,335
5250100 Office Expenses $5,000 $344 $2,000 $5,000
5270100 Rent & Lease $53,182 $35,272 $53,182 $54,766
5255650 Data Processing Services $28,038 $16,375 $28,038 $27,520 5225500 Commissioners' Fee $10,000 $1,900 $7,000 $10,000 5260100 Publications and Legal Notices $1,000 $308 $1,000 $1,000 5245100 Membership Dues $12,887 $12,921 $12,921 $13,870 5250750 Printing and Reproduction $1,500 $0 $500 $1,500 5285800 Business Travel $10,000 $3,125 $6,000 $15,900
5285300 Private Automobile Mileage $1,000 $7 $200 $1,000 5285200 Transportation&Travel (County Car Usage) $600 $0 $200 $600 5281600 Overhead $30,041 $15,021 $30,041 $20,358
5275200 Computer Hardware $3,000 $0 $1,000 $4,000
5250800 Computer Software $5,000 $853 $2,000 $4,000
5250250 Postage $1,000 $10 $300 $500
5252100 Staff/Commissioner Training Programs $2,000 $0 $1,000 $2,000 5701000 Reserves $0 $0 $0 $0
TOTAL EXPENDITURES $1,222,980 $561,180 $1,060,187 $1,296,000

REVENUES
4103400 Application Fees $30,000 $19,603 $25,000 $30,000 4301100 Interest: Deposits and Investments $6,000 $4,657 $6,000 $6,000 TOTAL REVENUE $36,000 $24,260 $31,000 $36,000
3400150 FUND BALANCE FROM PREVIOUS FY $201,006 $410,027 $410,027 $366,814 NET LAFCO OPERATING EXPENSES $985,974 $126,893 $619,160 $893,186 3400800 RESERVES Available $200,000 $200,000 $200,000 $200,000

COSTS TO AGENCIES
5440200 County $328,658 $328,658 $328,658 $297,729
4600100 Cities (San Jose 50% + Other Cities 50%) $328,658 $328,658 $328,658 $297,729 4600100 Special Districts $328,658 $328,658 $328,658 $297,729 February 23, 2023
ITEM # 7
Attachment D
$893,186

JURISDICTION REVENUE PER
2020/2021 REPORT

PERCENTAGE OF

TOTAL REVENUE

ALLOCATION

PERCENTAGES

ALLOCATED
COSTS
County N/A N/A 33.3333333% $297,728.67
Cities Total Share 33.3333333% $297,728.67
San Jose N/A N/A 50.0000000% $148,864.34
Other cities share 50.0000000% $148,864.33
Campbell $67,824,629 1.9995536% $2,976.62
Cupertino $125,426,339 3.6977230% $5,504.59
Gilroy $131,638,480 3.8808646% $5,777.22
Los Altos $61,718,303 1.8195316% $2,708.63
Los Altos Hills $19,614,107 0.5782480% $860.81
Los Gatos $51,370,842 1.5144757% $2,254.51
Milpitas $186,509,610 5.4985331% $8,185.35
Monte Sereno $4,845,074 0.1428388% $212.64
Morgan Hill $113,620,439 3.3496705% $4,986.46
Mountain View $373,855,966 11.0217345% $16,407.43
Palo Alto $664,162,959 19.5803423% $29,148.15
Santa Clara $1,000,850,828 29.5063155% $43,924.39
Saratoga $35,690,808 1.0522090% $1,566.36
Sunnyvale $554,860,115 16.3579598% $24,351.17
Total Cities (excluding San Jose) $3,391,988,499 100.0000000% $148,864.33 Total Cities (including San Jose) $297,728.67
Special Districts Total Share (Fixed %) 33.3333333% $297,728.66 Aldercroft Heights County Water District 0.06233% $185.57 Burbank Sanitary District 0.15593% $464.25
Cupertino Sanitary District 2.64110% $7,863.31
El Camino Healthcare District 4.90738% $14,610.68
Guadalupe Coyote Resource Conservation District 0.04860% $144.70 Lake Canyon Community Services District 0.02206% $65.68 Lion's Gate Community Services District 0.22053% $656.58 Loma Prieta Resource Conservation District 0.02020% $60.14 Midpeninsula Regional Open Space District 5.76378% $17,160.42 Purissima Hills Water District 1.35427% $4,032.05
Rancho Rinconada Recreation and Park District 0.15988% $476.01 San Martin County Water District 0.04431% $131.92
Santa Clara Valley Open Space Authority 1.27051% $3,782.67 Santa Clara Valley Water District 81.44126% $242,473.98 Saratoga Cemetery District 0.32078% $955.05
Saratoga Fire Protection District 1.52956% $4,553.94
South Santa Clara Valley Memorial District 0.03752% $111.71 Total Special Districts 100.00000% $297,728.66
Total Allocated Costs $893,186.00
LAFCO COST APPORTIONMENT: COUNTY, CITIES, SPECIAL DISTRICTS Estimated Costs to Agencies Based on the Preliminary FY 2024 LAFCO Budget March 22, 2023
Preliminary Net Operating Expenses for FY 2024
ITEM # 7
Attachment E

Joint Meeting for the Rules and Open Government Committee and Committee of the WholeApril 12, 2023

Joint Meeting for the Rules and Open Government Committee and Committee of the Whole
April 12, 2023