HomeMy WebLinkAbout04/09/2009 Town of Los Altos Hills
City Council Regular Meeting Minutes
April 9, 2009
Council Chambers, 26379 Fremont Road
CALL TO ORDER, ROLL CALL, AND PLEDGE OF ALLEGIANCE
Mayor Mordo called the City Council Regular Meeting to order at 7:00 p.m. in the
Council Chambers at Town Hall.
Present: Mayor Jean Mordo, Mayor Pro Tem Dean Warshawsky,
Councilmember Breene Kerr, Councilmember Rich Larsen, and
Councilmember Ginger Summit
Absent: None
Staff: City Manager Carl Cahill, City Engineer/Public Works Director Richard
Chiu, Finance Director Nick Pegueros, Planning Director Debbie Pedro,
City Attorney Steve Mattas, and City Clerk Karen Jost
APPOINTMENTS AND PRESENTATIONS
1. Donor Wall Donation-Karen Druker
Resident and Town volunteer Art Curator Karen Druker addressed Council. She spoke of
her appreciation and fondness for the Town of Los Altos Hills and the wonderful
community experiences she and her family have enjoyed as Town residents. Mrs. Druker
added that she was pleased to be able to play a part in assisting the Town in completing
its first public art project,the Town Hall Donor Wall.
Mayor Mordo, on behalf of the Council, accepted Mrs. Druker's check and thanked her
for her generous donation.
2. Administration of Oath to Community Emergency Response Team Volunteers
Public Safety Officer Steve Garcia introduced the Community Emergency Response
Team Volunteers (CERT). The 36 resident volunteers had completed 20 hours of training
and were the second graduating class of the Town's and Los Altos Hills County Fire
District's Emergency Response and Preparedness Program. Garcia thanked the Fire
District for underwriting the cost of the training program and the equipment provided to
the volunteers.
The City Clerk administered the Loyalty Oath to the volunteers and thanked them for
their commitment to the community.
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April 9,2009
The Council thanked the volunteers and acknowledged the key role they could potentially
play in an emergency.
• 3. Council Member Appointment to the VTA Policy Advisory Committee
MOTION SECONDED AND CARRIED: Moved by Summit, seconded by Kerr and
passed unanimously to appoint Councilmember Rich Larsen to serve as the Town's
representative on the Santa Clara Valley Transportation Authority's Policy Advisory
Committee.
4. Appointment to the Standing Water Conservation Committee- (3 Vacancies)
MOTION SECONDED AND CARRIED: Moved by Summit, seconded by Larsen and
passed unanimously to appoint resident Richard Johnson to the Standing Water
Conservation Committee for a term of four years.
CONSENT CALENDAR
MOTIONED SECONDED AND CARRIED: Moved by Kerr, seconded by Larsen and
passed unanimously to approve the items on the consent calendar; specifically:
5. Approval of Meeting Minutes: City Council Regular Meeting—March 26, 2009
For the record, City Attorney Steve Mattas clarified his statement which appeared on
• page 2, paragraph 4. It should read "Additionally, the City Attorney would review the
feasibility of the two applicants serving in an "ex officio" role on the Committee if it was
determined that the appointment was incompatible.
6. Adoption of Ordinance No. 515: Amending the Zoning Map to Apply the Zoning
Designation of R-A (Residential-Agricultural) on Approximately 12.79 Acres of
Land at the End of La Loma Drive Bounded by the Town of Los Altos Hills to the
West,North and East. (Motion to Waive Further Reading and Adopt the Ordinance)
PRESENTATIONS FROM THE FLOOR
No public comments.
UNFINISHED BUSINESS
7. Update on Town Goals
• Emergency Preparedness
Discussed in conjunction with Agenda Item#2. No additional reports given.
• Environmental Initiatives
No report given.
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• Parks and Recreation Assets and Programs
Mayor Mordo reported that he and several members of the City Council had attended the
Los Altos/Los Altos Hills Little League "Opening Day Ceremony". Due to the condition
of the Town's playing fields, the event had been held at Egan Middle School, Los Altos.
Staff reported that the dedication/opening of Purissima Hills Park was scheduled for
Sunday, May 3ra
Councilmember Larsen reported that he, Councilmember Kerr, City Engineer Richard
Chiu and City Manager Carl Cahill had biked on the new pedestrian/bicycle path on El
Monte Road by Foothill College. He noted that the path was nearing completion and very
impressive.
Mayor Mordo reported that a meeting had been scheduled with Foothill College
representatives to discuss the feasibility of the Town's use of the practice field for soccer
programs. Soccer associations would be contacted if there was any support from the
school for the proposal. Councilmember Kerr suggested that lengthening the playing area
to a full size soccer field should be investigated if the proposal moved forward.
• Sewers and Infrastructure
Mayor Mordo questioned if the former Ad Hoc Sewer Committee had been approached to
re-visit the sewer expansion study. Councilmember Larsen noted that to date they had
not been contacted. It was suggested that the group be re-activated to investigate sewer
issues.
• Councilmember Kerr provided a brief update on AB 811. In addition to the legislation
providing financing options for solar projects, it could potentially be used for sewer
infrastructure expansion. The Town has developed a priority project list to assist the
lobbyist.
8. 5-Year Financial Forecast(Verbal Report—Staff. N. Pegueros)
Finance Director Nick Pegueros introduced the agenda item to Council. Staff was
currently in the process of preparing next year's budget and given the current economic
climate, he commented that it was appropriate to provide Council with an update on the
Town's fiscal condition. For evaluation purposes, Pegueros had prepared a five-year
financial forecast.
Pegueros proceeded with a PowerPoint Presentation. He noted that the General Fund
revenue and expense chart (1995-2015) was a high level overview and did not include
transfers to capital and special funds. At this time, expenses were not expected to exceed
revenue in the near future. Pegueros identified the elements that drive the Town's fiscal
conditions. Property taxes and interest earnings were major movers affecting the Town's
revenues; with transfers to other funds and CalPERS pension rates identified as key
contributors to the Town's expenses.
Property taxes provided 57% of the Town's total General Fund revenues. Pegueros
• reviewed the actual and projected assessed valuations for Los Altos Hills' properties.
The projection reflected a conservative forecast for assessed values during the next five
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April 9,2009
years. Pegueros noted that given the uncertainty of economic conditions,the conservative
forecast outlined in the report was the most prudent. Drivers of property taxes included
• the assessor's annual CPI adjustment; new construction and improvements valuation; and
the sale of properties. Identified threats to property tax revenues were assessment appeals
and the possibility that the State of California might move to balance it's budget deficit
using local monies. This fiscal year the Town had not been adversely affected by the
State's budget. The worse case scenario if Proposition lA failed to pass would be an
$850,000 impact to the Town.
Pegueros explained that the Town's tax consultant had projected a possible reduction of
assessed valuations in 2010 with a potential loss of$32,000 in tax revenue. However,this
reduction should be offset by the assessor's increase in CPI adjustments to property taxes.
The overview of the Town's assessed property valuations indicated that two-thirds of the
residences were assessed at a value below the 2008 median sales price of a LAH home.
Pegueros offered that this reaffirmed the potential that it was highly possible there would
be growth in the assessed valuations of Town properties.
Pegueros reviewed the Town's portfolio's interest earnings. The Town has benefited
from the professional management of the portfolio with profitable rates of return.
However, as the portfolio matures, the reinvestments will most likely be impacted by
lower interest rates with a decrease in the overall yield. It was noted that shorter
maturities could be an option for the investment vehicles. An additional issue that could
affect the Town's revenues was the underfunded Ca1PERS Pension fund. The maximum
downside to the Town was approximately $100,000. The expectation was to have a
• better understanding of the issue in July when CalPERS fund balances were reported.
Pegueros explained that even given the conservative projections, at this time there did not
appear to be a need to draw down from the operating fund balance. Additionally, the
fiscal condition would improve if property taxes or interest earnings exceeded the very
conservative estimates of the report. In reviewing the funds reserved for emergencies
("rainy days") Pegueros suggested that Council consider increasing the balance annually.
Pegueros offered that Council comments and input on his report would be incorporated
into the draft budget and forwarded to Council at their scheduled budget study session in
May.
OPENED PUBLIC COMMENTS
John Harpootlian, resident, complimented Finance Director Pegueros on his presentation.
He was appreciative that the Town's money was being invested safely and had weathered
the economic storm.
CLOSED PUBLIC COMMENTS
Council Discussion:
Council thanked Pegueros for his report. Council consensus was that even with the
conservative approach used by the Finance Director to prepare the forecast; the Town was
• in "fairly good" financial shape. At this time, there was no posed jeopardy to any of the
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April 9,2009
Town's current programs or projects that had been funded. Council consensus was to
increase the emergency fund and requested a proposed formula to annually increase the
• fund.
Councilmember Kerr suggested that during the upcoming budget review, Council
consider reducing the annual paving allocation for this year given the likelihood that
paving costs would be high and contractors committed to projects due to the stimulus
programs. Any federal funds the Town received could be used to make up the difference
in the expenditure.
NEW BUSINESS
9. Consideration of Pilot WEB-Based Survey Program(Staff. N. Pegueros)
Finance Director Nick Pegueros introduced the item to Council. In conjunction with the
Town's webmaster, Snow Technologies, staff had worked to develop a pilot web-based
survey program. The goal of the program was to assess the feasibility of an alternative to,
but not necessarily a replacement of, the current paper survey process. The key areas of
evaluation for the proposed program would be user friendliness, accessibility, survey
question development protocols, and gaming safeguard.
The expectation was to launch the program by the end of the fiscal year. The results of
the pilot program would allow staff to make a recommendation to the City Council on the
long-term viability of using web-based surveys.
• OPENED PUBLIC COMMENTS
John Harpootlian, resident, supported the proposal and offered that as outlined,the survey
had the potential to provide accurate results.
CLOSED PUBLIC COMMENTS
PASSED BY CONSENSUS OF THE CITY COUNCIL: Council supported the
development of the pilot web-based survey program and directed staff to move forward
with the project.
PLANNING COMMISSION REPORT
Planning Director Debbie Pedro reported that the Housing Element survey had been
completed and sent out to all residents in a town-wide mailing. To date, the Town had
received 1,043 returned surveys. The survey results supported the belief that a majority
of the Town's second units were being rented out below market rate. Pedro noted that
with the confirmation, the Town would continue to use second units to meet the State's
affordable housing requirement. The Housing Element subcommittee was scheduled to
meet again in May with the final draft document scheduled for Public Hearings before the
Planning Commission initially and then the City Council in June.
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Pedro reported out on the actions of the Planning Commission at their April 2, 2009
Meeting. Five Public Hearings had been reviewed by the Commission. They included
the Conditional Use Permit reviews for the David and Lucile Packard Foundation and
• AT&T Wireless at the Little League fields. The two CUP reviews were unanimously
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recommended for approval and would be forwarded to Council for their consideration at
the next April 23rd meeting. The Commission had also considered three requests for Site
Development Permits. They included: a request for a setback and grading variance for
Lands of Kroot on Mood Court which was unanimous) approved; a request for a new
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residence on Vinedo Lane (Lot 1) unanimously approved with additional conditions; and,
a request for a new residence on Vinedo Lane (Lot 3) which was continued by a 3-1 vote
with direction to the applicant to relocate the house further from the setbacks to reduce
the amount of paving. Pedro noted that the staff reports and conditions of approval for
the projects would be forwarded to the City Council.by the City Clerk.
Councilmember Kerr requested clarification on the status of the Vinedo Lane-Lot 1
approval. Pedro reported that staff had received inquires on the appeal process but the
project had not been appealed.
Councilmember Kerr, for the record, stated that he was appealing the Planning
Commission approval of Lands of Gavra, Lot 1 (Vinedo Lane).
REPORTS FROM COMMITTEES, SUB-COMMITTEES, AND COUNCILMEMBERS
ON OUTSIDE AGENCIES
• Mayor Pro Tem Warshawsky reported that he and Councilmember Rich Larsen had met
with resident Mark Breier to discuss his concept for connecting school age kids in Town.
There was a consensus of the Council to hear Breier's proposal at the next Council
meeting.
Mayor Mordo reported that as a member of the Los Altos-Los Altos Hills Joint
Community Volunteer Committee he had met with the committee to discuss
reorganization options. The draft By-Laws that govern the group would be forwarded to
the City Council for their review at the April 23, 2009 meeting.
Mayor Mordo reported that the North County Library Authority was discussing the
feasibility of a new parcel tax to finance the books and library hours for the Los Altos
library. The current parcel tax will sunset in approximately 18 months.
Councilmember Rich Larsen reported that John Harpootlian and he had met with a
representative of the Santa Clara Valley Water District.
Councilmember Larsen reported that two members of the Environmental Initiatives
Committee had submitted their resignations and that the Committee might be returning to
Council in the near future for direction. Councilmember Kerr noted that the Committee
had been very successful in meeting their goals. The previous Public Education
Committee had similar tribulations when they had met their objectives. Kerr suggested
that the Council be supportive of the Committee. He suggested that it was important for
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April 9,2009
the Committee to identify projects that could be proposed for grant funding from the
Department of Energy. This included the energy audit program that had been developed.
• STAFF REPORTS
Finance Director
• Status Report on Grant Funding (Verbal Report—Staff:N. Pegueros)
Councilmember Kerr reported that he had been working with staff and the Town's
consultants (lobbyists) Manatt, Phelps and Phillips to investigate possible stimulus
funding (federal loan guarantees) for the Town's initiatives. With regards to California
Energy Commission grants, Kerr offered that there was a possibility of the Town
partnering with neighboring Jurisdictions for the home energy audit program. Kerr had
requested a set of talking points from the lobbyist that could be used with local
government representatives. He spoke to the importance of the lobbyists remaining
focused on high probability projects.
Finance Director Nick Pegueros reported that staff, as noted by Councilmember Kerr, was
working with a consultant to identify and develop a comprehensive strategy to pursue
stimulus funding. Given the many unknowns surrounding federal programs, most
agencies were currently focusing on the rules and application processes. Pegueros
requested Council consideration of appointing an Ad-Hoc Committee that would include
Councilmember Kerr to review the variety of issues in the development of strategic plan.
City Manager Carl Cahill spoke to the importance of being judicious with the Town's
money and given the high hourly rate for the lobbyist, he felt it was important to have
Council input to ensure that staff was working in the right direction.
MOTION SECONDED AND CARRIED: Moved by Warshawsky, seconded by Summit
and passed unanimously to appoint Councilmembers Kerr and Larsen to serve as the
Council's representatives on an Ad Hoc Committee to assist the lobbyist and staff in the
development of a strategic plan for identifying potential grant and stimulus funding.
City Manager
City Attorney
City Clerk
No additional reports were given.
COUNCIL INITIATIED ITEMS
No items were agendized for discussion.
ADJOURNMENT
There being no further business,the meeting was adjourned by consensus of the City
Council at 8:55 p.m.
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Respectfully submitted,
Karen Jo
City Clerk
The minutes of the April 9, 2009 meeting were approved as presented at the April 23,
2009 regular City Council meeting.
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April 9,2009