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HomeMy WebLinkAbout12-05-2012 City Council Agenda Packet�i <— kIFO'R AGENDA SPECIAL MEETING SARATOGA CITY COUNCIL DECEMBER 5, 2012 SPECIAL MEETING — 5:35 P.M. — ADMINISTRATIVE CONFERENCE ROOM, 13777 FRUITVALE AVENUE. CALL MEETING TO ORDER — 5:35 P.M. REPORT ON POSTING OF AGENDA (Pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on November 30, 2012) COMMUNICATIONS FROM COMMISSIONS & PUBLIC ORAL COMMUNICATIONS ON NON - AGENDIZED ITEMS Any member of the public will be allowed to address the City Council for up to three (3) minutes on matters not on this agenda. The law generally prohibits the council from discussing or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Communications under Council Direction to Staff. COUNCIL DIRECTION TO STAFF Instruction to Staff regarding actions on current Oral Communications. COMMISSION INTERVIEWS — 5:35 P.M. TIME APPLICANT COMMISSION VACANCIES 5:40 p.m. Cheryl Nelson Bailey Parks and Recreation 2 vacancies 5:45 p.m. Renee Paquier Parks and Recreation 2 vacancies CALL JOINT MEETING TO ORDER — 6:00 P.M. ADMINISTRATIVE CONFERENCE ROOM, 13777 FRUITVALE AVENUE 1. Joint Meeting with the State Assembly Member Paul Fong Recommended Action: Informational Only ADJOURNMENT In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the City Council by City staff in connection with this agenda are available at the office of the City Clerk at 13777 Fruitvale Avenue, Saratoga, CA 95070. Note that copies of materials distributed to the City Council concurrently with the posting of the agenda are also available on the City Website at www.sarato ag ca.us. Any materials distributed by staff after the posting of the agenda are made available for public review at the office of the City Clerk at the time they are distributed to the City Council. In Compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk at 4081868 -1269. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102- 35.104 ADA title II] Certificate of Posting of Agenda: I, Crystal Bothelio, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council was posted and available for public review on November 30, 2012 at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and on the City's website at www.saratoga.ca.us. Signed this 30th day of November 2012 at Saratoga, California. Crystal Bothelio City Clerk 4 L� 0� S A � /FOR% AGENDA SPECIAL MEETING SARATOGA CITY COUNCIL DECEMBER 5, 2012 SPECIAL MEETING — 7:00 P.M. — CIVIC THEATER/COUNCIL CHAMBERS — 13777 FRUITVALE AVENUE PLEDGE OF ALLEGIANCE ROLL CALL REPORT OF CITY CLERK ON POSTING OF AGENDA (Pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on November 30, 2012) COMMUNICATIONS FROM COMMISSIONS & PUBLIC Oral Communications on Non- Aundized Items Any member of the public will be allowed to address the City Council for up to three (3) minutes on matters not on this agenda. The law generally prohibits the council from discussing or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Communications under Council Direction to Staff. Oral Communications - Council Direction to Staff Instruction to Staff regarding actions on current Oral Communications. Communications from Boards and Commissions Council Direction to Staff Instruction to Staff regarding actions on current Communications from Boards & Commissions. CEREMONIAL ITEMS 1. Commendation for Brian Babcock Recommended action: Read and present commendation to Brian Babcock. NEW BUSINESS 2. Declaration of Results of November 6, 2012 General Municipal Election and Oath of Office for Newly Elected Council Members Recommended action: Adopt resolution declaring the results of the November 6, 2012 General Municipal Election. 3. Oath of Office for Newly Elected Council Members Recommended action: City Clerk or designee to administer the Oath of Office to newly elected Council Members. 4. Remarks from Outgoing Mayor Page and Council Members 5. Reorganization of City Council Recommended action: Appoint Mayor and Vice Mayor: 1) City Clerk declares the offices of Mayor and Vice Mayor to be vacant; 2) Nomination of the Mayor; 3) Administer Oath of Office to New Mayor; 4) Nomination of the Vice Mayor; and 5) Administer Oath of Office to New Vice Mayor. 6. Remarks from New Mayor, Vice Mayor, and Council Members ADJOURNMENT TO CIVIC THEATER LOBBY FOR SHORT RECEPTION In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the City Council by City staff in connection with this agenda are available at the office of the City Clerk at 13777 Fruitvale Avenue, Saratoga, CA 95070. Note that copies of materials distributed to the City Council concurrently with the posting of the agenda are also available on the City Website at www.saratoga.ca.us. Any materials distributed by staff after the posting of the agenda are made available for public review at the office of the City Clerk at the time they are distributed to the City Council. In Compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk at 4081868 -1269. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102- 35.104 ADA title II] Certificate of Posting of Agenda: I, Crystal Bothelio, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council was posted and available for public review on November 30, 2012 at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and on the City's website at www.saratoga.ca.us. Signed this 30th day of November 2012 at Saratoga, California. Crystal Bothelio, City Clerk N u 7 SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: City Clerk CITY MANAGER: Dave Anderson PREPARED BY: Debbie Bretschneider DIRECTOR: SUBJECT: Proclamation for Brian Babcock RECOMMENDED ACTION: Present proclamation to Brian Babcock, formerly a reporter with the Saratoga News. REPORT SUMMARY: Brian Babcock was a reporter with the Saratoga News from April 2008 to December 2012 and was recently promoted to Editor of the Campbell Reporter. This commendation is to thank him for his reporting on the City of Saratoga. FISCAL IMPACTS: None CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: N/A ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: None ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Proclamation COMMENDATION OF THE CITY COUNCIL OF THE CITY OF SARATOGA HONORING BRIAN BABCOCK WHEREAS, Brian Babcock earned an Associate of Science degree in Accounting at Skyline College in 2004 and he earned a Bachelor of Arts in Journalism at San Francisco State University in 2006; and WHEREAS, Brian was a correspondent at the Oakland Tribune, and a reporter at the Gilroy Dispatch and the Palo Alto Daily News before starting at the Saratoga News in April 2008; and WHEREAS, Brian Babcock has reported on all aspects of the Saratoga community, from City Council business to community events to local tragedies; and WHEREAS, since Brian started reporting for the Saratoga News, he has been a regular presence at Saratoga's events, Council meetings, at City Hall, and elsewhere throughout the community; and WHEREAS, Brian established and maintained valuable working relationships with City Council members, community leaders, and City staff, and WHEREAS, Brian was instrumental in the implementation of nine Facebook pages for the Silicon Valley Community Newspapers; and WHEREAS, in 2010, Brian was promoted to Assistant Editor for the Saratoga News, Los Gatos Weekly- Times, and Campbell Reporter, which are all part of the Silicon Valley Community Newspapers; and WHEREAS, in December 2012, Brian Babcock was promoted to the position of Editor at the Campbell Reporter; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Saratoga does herby proclaim recognition and appreciation to Brian Babcock for his contributions to the Saratoga community and to wish him the best of luck in his new position. WITNESS MY HAND AND THE SEAL OF THE CITY OF SARATOGA this 5th day of December 2012. Chuck Page, Mayor City of Saratoga u � SARATOGA CITY COUNCIL RL ?FVx1�`� MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: Declaration of Results of November 6, 2012 General Municipal Election and Oath of Office for Newly Elected Council Members RECOMMENDED ACTION: Adopt resolution declaring the results of the November 6, 2012 General Municipal Election. :TNZe��111►i1� After each election, election officials must conduct an official canvass of returns. Saratoga consolidates its elections with Santa Clara County. Consequently, the Santa Clara County Registrar of Voters is responsible for conducting the official canvass of returns. The canvass of returns includes: - Verify signatures on ballots; - Processing vote -by -mail ballots not counted in the semifinal official canvass of the vote, counting votes for write -in candidates; - Inspection of materials and supplies returned by poll workers; - Reconciling number of ballots counted, spoiled, canceled, or invalid with number of votes counted, including vote -by -mail and provisional ballots; - Reproducing damaged ballots, if necessary; - Manually counting ballots cast in one percent of precincts, which are chosen at random by the elections official; and - Reporting final results of the election. Per State law, the Santa Clara County Registrar of Voters has 28 days after the election to complete the canvass of returns. For the November 6, 2012 General Municipal Election, the deadline for the canvass of returns is December 4, 2012. Following completion of the canvass of returns and no later than the first regular meeting following the canvass, the Saratoga elections official or City Clerk must present the official election results and certificate of election results to the City Council. These documents will be presented to the City Council at the December 5, 2012 Special Meeting. The City Council must then adopt a resolution declaring the results of the election and install the newly elected members of the City Council. The top two candidates will fill two open seats on the City Council for a full, four year term. Page 1 of 2 FISCAL IMPACTS: The final cost of the November 6, 2012 General Municipal Election for two candidates on the ballot and one write -in candidate has yet to be determined by the Santa Clara County Registrar of Voters. CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The City Council would not adopt a resolution declaring the results of the election and the two newly elected City Council Members would not be installed. ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): The City Clerk will send a certified copy of the resolution declaring the election results to the Secretary of State, Santa Clara County Registrar of Voters, and Santa Clara County Board of Supervisors. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A: Resolution Declaring the Results of the November 6, 2012 General Municipal Election Page 2 of 2 RESOLUTION NO. 12- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA RECITING THE FACT OF THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 6, 2012 AND DECLARING THE RESULT AS PROVIDED BY LAW WHEREAS, a General Municipal Election was held and conducted in the City of Saratoga, California on Tuesday, November 6, 2012, as required by State law; and WHEREAS, notice of the election was given in time, form, and manner as provided by law; voting precincts were property established; election officials were appointed and that in all respects the election was held and conducted and the votes were cast, received and canvassed and the returns made and declared in time, form and manner as required by the provision of the Elections Code of the State of California; and WHEREAS, the Santa Clara County Registrar of Voters canvassed the returns of the election and has certified the results to this City Council, the results are received, attached and made a part of this resolution as Exhibit A; and WHEREAS, the City Council now meets to declare the results of the canvass of ballots; NOW, THEREFORE, BE IT RESOLVED, that the City of Saratoga hereby determines the results of the election to be as shown on Exhibit A attached to and made part of this resolution and declares elected to full terms of office the following members of the City Council: Howard Miller — Incumbent Manny Cappello — Incumbent BE IT FURTHER RESOLVED, that the City Council directs the City Clerk to enter this resolution and these results of the election as shown on Exhibit A in the official records of the City of Saratoga; make and deliver to each of the persons elected a Certificate of Election signed by the City Clerk and authenticated; and administer to each person elected the Oath of Office prescribed in the Constitution of the State of California; and all of the persons so elected shall be inducted into the respective office to which they have been elected. The above and foregoing resolution was passed and adopted at a special meeting of the Saratoga City Council held on the 5th day of December 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: DATE: Crystal Bothelio, City Clerk Chuck Page, Mayor u � SARATOGA CITY COUNCIL RL ?FVx1�`� MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: Reorganization of City Council — Appointment of Mayor and Vice Mayor RECOMMENDED ACTION: Appoint Mayor and Vice Mayor. BACKGROUND: California Government Code Section 36801 states that the Mayor and Mayor Pro Tern of general law cities are to be selected by a majority vote of the City Council. Each December, the Council conducts a reorganization to select a Mayor and Vice Mayor to serve a one year term. To commence the reorganization, the City Clerk will declare the Offices of Mayor and Vice Mayor vacant. The City Clerk will open nominations for the Office of Mayor, close nominations, then call for the vote. Following the vote, the Oath of Office will be administered to the Mayor. The Mayor will then lead selection of the Vice Mayor and the Oath of Office will be administered to the Vice Mayor. After the Mayor and Vice Mayor have taken the Oath of Office, the Council will close the Special Meeting for a short reception in the Civic Theater Lobby. The Regular Meeting will begin at 8:00 p.m. In January 2010, the City Council adopted Resolution 10 -002 to establish a rotation policy of the Mayor and Vice Mayor. The policy is attached. FISCAL IMPACTS: 1100 CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: N/A ALTERNATIVE ACTION(S): Page 1 of 2 N/A FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A: Resolution 10 -002 Mayoral Rotation Policy Attachment B: History of Mayoral Rotation — 1998 to 2012 Page 2 of 2 RESOLUTION NO. 10 -002 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA IMPLEMENTING A POLICY FOR ROTATION OF MAYOR AND VICE MAYOR WHEREAS, California Government Code Section 36801 provides that the Mayor and Mayor Pro Tern of a general law city is selected by a majority vote of the City Council; and WHEREAS, said Government Code Section does not require nor provide for any particular procedure for selecting the Mayor; and WHEREAS; the Saratoga Municipal Code does not provide a procedure for selecting the Mayor and the Mayor Pro Tem; and WHEREAS, on December 16, 2009, the Saratoga City Council was provided with samples of other California cities' policies regarding mayoral rotation; and WHEREAS, on December 16, 2009, the Saratoga City Council considered establishing a Council policy that would provide a method for the selection of Mayor and Vice Mayor for the City of Saratoga; and WHEREAS, on December 16, 2009, the Saratoga City Council voted to implement a mayoral rotation policy that would place the council candidates with the two highest votes in any one election into a queue to rotate into the position of Mayor and Vice Mayor. In each Saratoga City Council election, the candidate with the most votes is placed first in the rotation of that group, the candidate with the second highest votes is placed second; and WHEREAS, on December 16, 2009, the Saratoga City Council directed staff to bring back a resolution establishing Council's newly implemented mayoral rotation policy at the next scheduled regular Council meeting on January 20, 2010. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Saratoga adopts a resolution establishing a mayoral rotation policy whereby the two council candidates with the highest votes in any one election are placed into a queue to rotate into the position of Mayor and Vice Mayor. In each Saratoga City Council election, the candidate with the most votes is to be placed first in the rotation of that group, the candidate with the second highest votes is to be placed second. The Mayor and Vice Mayor are chosen annually by the City Council from among its members by the affirmative vote of three or more of the Council Members. In each City Council election, the person with the most votes shall be placed first in the rotation of that group, the second highest vote getter will be placed second, and in the years when there is a third seat contest, the third highest vote getter will be placed third in that rotation. However, the Council member who received the third most votes in an election year filling three seats will not be in the queue for either Vice Mayor or Mayor but would be in rotation should the Council member traditionally rotating into the Vice Mayor or Mayor position be unavailable to serve in that role. In case of appointment to the City Council to fill a vacancy, that person will not be placed in rotation for the position of Mayor or Vice Mayor. Each new election will determine the rotation only for the group in that election. Should any City Council member not be available to take their regular place in the established rotation, the next person in the rotation will be elevated to the Vice Mayor's position and the rotation will continue as previously set. BE IT FURTHER RESOLVED, the above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 201h day of January 2010 by the following vote: AYES: Councilmember Chuck Page, Howard Miller, Mayor Kathleen King NOES: Councilmember Jill Hunter ABSTAIN: None ABSENT: Councilmember Susie ]Vagpal ATTEST: Ann Sullivan, City Clerk Year Mayor and Vice Mayor By Rotation Method Mayor and Vice Mayor By Election 1998 -99 Election Year ELECTION RESULTS 1. Mehaffey 2. Streit 3. Baker Shaw (Mayor)* Shaw (Mayor) * Bogosian (Vice Mayor) Bogosian (Vice Mayor) 1999 -2000 Non Election Year Bogosian (Mayor) * Bogosian (Mayor) Mehaffey (Vice Mayor) Mehaffey (Vice Mayor) 2000 -01 Election Year ELECTION RESULTS 1. Bogosian 2. Waltonsmith Mehaffey (Mayor) Mehaffey (Mayor) Streit (Vice Mayor) Streit (Vice Mayor) 2001 -02 Non Election Year Streit (Mayor) * Streit (Mayor) Baker (Vice Mayor)* Baker (Vice Mayor)* 2002 -03 Election Year ELECTION RESULTS 1. Streit 2. King 3. Kline Bogosian (Mayor) Streit (Mayor) Waltonsmith (Vice Mayor) Waltonsmith (Vice Mayor) 2003 -04 Non Election Year Waltonsmith (Mayor) Waltonsmith (Mayor) Streit (Vice Mayor) King (Vice Mayor) 2004 -05 Election Year ELECTION RESULTS 1. Kao 2. Waltonsmith Streit (Mayor) King (Mayor) King (Vice Mayor) Kline (Vice Mayor) 2005 -06 Non Election Year King (Mayor)* Kline (Mayor)* Kline (Vice Mayor)* Kao (Vice Mayor) 2006 -07 Election Year ELECTION RESULTS 1. Page 2. King 3. Hunter Kao (Mayor) Kao (Mayor) Waltonsmith (Vice Mayor) Waltonsmith (Vice Mayor) 2007 -08 Non Election Year Waltonsmith (Mayor)* Waltonsmith (Mayor)* Page (Vice Mayor) Page (Vice Mayor) 2008 -09 Election Year ELECTION RESULTS 1. Miller 2. Nagpal Page (Mayor) Page (Mayor) King (Vice Mayor) King (Vice Mayor) 2009 -10 Non Election Year King (Mayor)* King (Mayor)* Hunter (Vice Mayor)* Hunter (Vice Mayor)* 2010 -2011 Election Year ELECTION RESULTS 1. Page 2. Hunter 3. Lo Miller (Mayor) Miller (Mayor) Page (Vice Mayor) Page (Vice Mayor) 2011 -12 Non Election Year Page (Mayor) Page (Mayor) Hunter (Vice Mayor) Hunter (Vice Mayor) 2012 -13 Election Year ELECTION RESULTS' 1. Miller 2. Cappello Hunter (Mayor) Lo (Vice Mayor) * Indicates end of term on Council " Based on election results reported on Santa Clara County Registrar of Voters website prior to certification of election results. ■ Terms for Mayor and Vice Mayor are one year in length from December to December. ■ 1999: Mayor Shaw died in office, August 2, 1999. Bogosian was designated Mayor Pro Tempore with the Mayor's position vacant until the next Council Reorganization. ■ 2002 -03: Streit elected as Mayor by Council majority out of rotation. ■ 2003 -04: Streit relinquishes place in rotation. Each subsequent Council position moves up in rotation. ■ 2006 -07: "Normal" rotation re- established. ■ 2009 -10: Nagpal passed away while in office May 2010. Cappello appointed to fill the remainder of her term. ■ 2010 -11: Page elected as Vice Mayor, because Cappello was ineligible to serve as Vice Mayor or Mayor due to rotation policy. This also affected Lo's eligibility for Mayor and Vice Mayor. Table of Contents Agenda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Commendation for Outgoing Library Commissioner Sam McBane Mulford Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 9 Attachment A: Commendation for Sam McBane Mulford . . . . 11 Appointment of Saratoga Library Commissioner Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 12 Attachment A: Resolution of Appointment . . . . . . . . . . . 14 Attachment B: Oath of Office . . . . . . . . . . . . . . . . . 15 City Council Meeting Minutes Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 16 Attachment A: November 7, 2012 Special and Regular Meeting Minutes . . . . . . . . . . . . . . . . . . . . . . . 18 Review of Accounts Payable Check Registers Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 24 11/6/12 Check Register . . . . . . . . . . . . . . . . . . . . 26 11/13/12 Check Register . . . . . . . . . . . . . . . . . . . 33 11/20/12 Check Register . . . . . . . . . . . . . . . . . . . 37 11/27/12 Check Register . . . . . . . . . . . . . . . . . . . 41 Treasurer's Report for the Month Ended October 31, 2012 Treasurer's Report for the Month Ended October 31, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Annual Audit Reports Annual Audit Report . . . . . . . . . . . . . . . . . . . . . 50 CAFR . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Single Audit Report . . . . . . . . . . . . . . . . . . . . . . 186 TDA Report . . . . . . . . . . . . . . . . . . . . . . . . . 198 Gann Limit Report . . . . . . . . . . . . . . . . . . . . . . 206 Mgmt Report . . . . . . . . . . . . . . . . . . . . . . . . . 211 Development Impact Fee Report Development Impact Fee Report . . . . . . . . . . . . . . . 214 Highway 9 Safety Improvement Project Phase II — Budget Adjustment Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 217 Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . 219 Parker Ranch Retaining Wall Repair— Notice of Completion Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 220 Notice of Completion . . . . . . . . . . . . . . . . . . . . . 222 Highway 9 Safety Improvement Project Phase III — Notice of Completion Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 223 Notice of Completion . . . . . . . . . . . . . . . . . . . . . 225 Citywide Signal Upgrade Project Phase I — Notice of Completion. 1 Council Report- Citywide Signal Upgrade Project Phase I- Notice of Completion . . . . . . . . . . . . . . . . . . . . . 226 ATTACHMENT - 1 Notice of Completion . . . . . . . . . . . . 228 Saratoga Village Pedestrian Enhancement Project — Notice of Completion. Council Report- Saratoga Village Pedestrian Enhancement Project - Notice of Completion . . . . . . . . . . 229 ATTACHMENT - 1 Notice of Completion . . . . . . . . . . . . 231 CDBG Funded ADA Compliant Customer Service Counter Project CDBG Funded ADA Compliant Customer Service Counter Project . . . . . . . . . . . . . . . . . . . . . . . . 232 Attachment A Bid Summary for Community Center Counter . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Attachment B Community Center Counter Plans . . . . . . . . 239 Application APCC12 -0004; 19870 Mendelsohn Way (510 -01- 004); Peter and Rita Redford - Appeal of a Planning Commission decision approving a Fence Exception for a six foot tall wall within a front setback and an eight foot tall wall within the side setback at 19870 Mendelsohn Lane. Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 245 Attachment 1: Resolution . . . . . . . . . . . . . . . . . . . 247 Attachment 2: Appeal application and letter. . . . . . . . . . . 251 Attachment 3: Planning Commission Report . . . . . . . . . . 253 Attachment 4: Arborist Report . . . . . . . . . . . . . . . . . 258 Attachment 5: Neighbor Notification . . . . . . . . . . . . . . 264 Attachment 6: Site Photos . . . . . . . . . . . . . . . . . . . 268 Attachmnet 7: Project Plans . . . . . . . . . . . . . . . . . . 269 Village Streetscape Improvements Phase 2 — Review of Conceptual Design Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 280 Conceptual Design Plan . . . . . . . . . . . . . . . . . . . . 284 City of Saratoga Updated Personnel Rules and Policies staff report . . . . . . . . . . . . . . . . . . . . . . . . . . 296 Exhibit A . . . . . . . . . . . . . . . . . . . . . . . . . . . 298 Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . 415 2012/13 City Council Agency and Ad Hoc Assignments Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 417 Attachment A: Resolution 11 -083 . . . . . . . . . . . . . . . 419 Attachment B: Agency Assignment Descriptions . . . . . . . . 421 Attachment C: Agency and Ad Hoc Committee Meeting Schedule Summary . . . . . . . . . . . . . . . . . . . . . . 425 2 �J V AGENDA REGULAR MEETING SARATOGA CITY COUNCIL WEDNESDAY, DECEMBER 05, 2012 REGULAR MEETING — 8:00 P.M. — CIVIC THEATER/COUNCIL CHAMBERS AT 13777 FRUITVALE AVENUE PLEDGE OF ALLEGIANCE ROLL CALL REPORT OF CITY CLERK ON POSTING OF AGENDA (Pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on November 30, 2012) COMMUNICATIONS FROM COMMISSIONS & PUBLIC Oral Communications on Non- Aundized Items Any member of the public will be allowed to address the City Council for up to three (3) minutes on matters not on this agenda. The law generally prohibits the council from discussing or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Communications under Council Direction to Staff. Oral Communications - Council Direction to Staff Instruction to Staff regarding actions on current Oral Communications. Communications from Boards and Commissions Council Direction to Staff Instruction to Staff regarding actions on current Communications from Boards & Commissions. ANNOUNCEMENTS CEREMONIAL ITEMS 1. Commendation for Outgoing Library Commissioner Sam McBane Mulford Recommended action: Read and present commendation. 2. Appointment of Saratoga Library Commissioner Recommended action: 1. Adopt the resolution appointing Susan Calderon to the Library Commission; and 2. Direct the City Clerk to administer the Oaths of Office. 3 CONSENT CALENDAR The Consent Calendar contains routine items of business. Items in this section will be acted in one motion, unless removed by the Mayor or a Council member. Any member of the public may speak to an item on the Consent Calendar at this time, or request the Mayor remove an item from the Consent Calendar for discussion. Public Speakers are limited to three (3) minutes. 3. City Council Meeting Minutes Recommended action: Approve City Council minutes for the Special Meeting and the Regular Meeting on November 7, 2012. 4. Review of Accounts Payable Check Registers Recommended action: Review and accept check registers for the following accounts payable payment cycles: 11/6/2012 11/13/2012 11/20/2012 11/27/2012 5. Treasurer's Report for the Month Ended October 31, 2012 Recommended action: Review and accept the Treasurer's Report for the month ended October 31, 2012. 6. Annual Audit Reports Recommended action: Review and accept the Fiscal Year 2011/12 Comprehensive Annual Financial Report (CAFR), the Fiscal Year 2011/12 Single Audit Report (Federal Grant Awards), the FY 2011/12 Transportation Development Act Report (California Grant Award), and the FY 2012/13 Appropriation Limit Report. 7. Development Impact Fee Report Recommended action: Staff recommends that the Council review and accept the annual AB 1600 Development Impact Fee report for the year ended June 30, 2012. 8. Highway 9 Safety Improvement Project Phase II — Budget Adjustment Recommended action: Approve budget adjustment for Highway 9 Safety Improvement Project Phase II Construction. 9. Parker Ranch Retaining Wall Repair— Notice of Completion Recommended action: Move to accept the Parker Ranch Retaining Wall Repair as complete and authorize the City Manager to sign the Notice of Completion for the construction contract. 10. Highway 9 Safety Improvement Project Phase III — Notice of Completion Recommended action: 2 Move to accept the Highway 9 Safety Improvement Project Phase III as complete and authorize the City Manager to sign the Notice of Completion for the construction contract. 11. Citywide Signal Upgrade Project Phase I — Notice of Completion. Recommended action: Move to accept the Citywide Signal Upgrade Project Phase 1 as complete and authorize staff to record the Notice of Completion for the construction contract. 12. Saratoga Village Pedestrian Enhancement Project — Notice of Completion. Recommended action: Move to accept the Saratoga Village Pedestrian Enhancement Project as complete and authorize staff to record the Notice of Completion for the construction contract. 13. CDBG Funded ADA Compliant Customer Service Counter Project Recommended action: Staff recommends that Council accept the report and name Phillip A. Murray Construction as the low bidder for the CDBG funded ADA compliant customer service counter at the Community Center, and authorize the City Manager to approve the contract in the amount of $38,500 with a contingency of $3,850. PUBLIC HEARINGS Applicants /Appellants and their representatives have a total of ten minutes maximum for opening statements. Members of the public may comment on any item for up to three minutes. Applicant /Appellants and their representatives have a total of five minutes maximum for closing statements. Items requested for continuance are subject to Council's approval at the Council meeting 14. Application APCC12 -0004; 19870 Mendelsohn Way (510 -01 -004); Peter and Rita Redford - Appeal of a Planning Commission decision approving a Fence Exception for a six foot tall wall within a front setback and an eight foot tall wall within the side setback at 19870 Mendelsohn Lane. Recommended action: Deny the appeal thus upholding the Planning Commission's decision. OLD BUSINESS 15. Village Streetscape Improvements Phase 2 — Review of Conceptual Design Recommended action: Receive report and provide direction to staff regarding the Village Streetscape Improvements Project — Phase 2. NEW BUSINESS 16. City of Saratoga Updated Personnel Rules and Policies Recommended action: Adopt the Resolution approving the City's Updated Personnel Rules and Policies (hereinafter referred to as the Personnel Rules) (Exhibit "A "). 17.2012/13 City Council Agency and Ad Hoc Assignments Recommended action: 5 Accept report and provide direction to staff. ADHOC & AGENCY ASSIGNMENT REPORTS Mayor Chuck Page City School Ad Hoc Hakone Foundation Board Hakone Foundation Executive Committee Let's Move City Ad Hoc Santa Clara County Cities Association Santa Clara County Cities Association Selection Committee TEA Ad Hoc West Valley Mayors and Managers Association West Valley Sanitation District Vice Mayor Jill Hunter Hakone Foundation Board Historical Foundation KSAR Community Access TV Board SASCC Village Ad Hoc West Valley Flood Control & Watershed Advisory Committee Council Member Emily Lo Association of Bay Area Governments Highway 9 Ad Hoc Library Joint Powers Authority Sister City Liaison Village Ad Hoc Council Member Howard Miller City School Ad Hoc Council Finance Committee Postal Service Liaison Santa Clara Valley Water District Commission Saratoga Ministerial Association Valley Transportation Authority PAC West Valley Solid Waste Management Joint Powers Authority Council Member Manny Cappello Chamber of Commerce Council Finance Committee County HCD Policy Committee Highway 9 Ad Hoc Let's Move City Ad Hoc Santa Clara County Emergency Council TEA Ad Hoc 0 CITY COUNCIL ITEMS CITY MANAGER'S REPORT ADJOURNMENT In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the City Council by City staff in connection with this agenda are available at the office of the City Clerk at 13777 Fruitvale Avenue, Saratoga, CA 95070. Note that copies of materials distributed to the City Council concurrently with the posting of the agenda are also available on the City Website at www.sarato ag ca.us. Any materials distributed by staff after the posting of the agenda are made available for public review at the office of the City Clerk at the time they are distributed to the City Council. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting, please contact the City Clerk at (408) 868 -1269. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102- 35.104 ADA Title II) Certificate of Posting of Agenda: I, Crystal Bothelio, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council for the City of Saratoga was posted on November 30, 2012, at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and was available for public review at that location. The agenda is also available on the City's website at www.sarato ag ca. us Signed this 30`h day of November 2012 at Saratoga, California. Crystal Bothelio City Clerk NOTE: To view current or previous City Council meetings anytime, go to the City Video Archives at www.saratofmca.us 7 12/05 Fong 12/19 2013 CITY OF SARATOGA CITY COUNCIL MEETING CALENDAR 2012 -13 Re -org and Regular Meeting —Joint meeting with Assembly Member Paul Regular Meeting 01/02 Meeting Cancelled 01/16 Regular Meeting —Joint Meeting with Heritage Preservation Commission and Historical Foundation 01/25 Council Retreat 02/06 Regular Meeting —Joint Meeting with Saratoga Ministerial Association 0 !� -SAI? G � y SARATOGA CITY COUNCIL 11jem; � MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: Commendation for Outgoing Library Commissioner Sam McBane Mulford RECOMMENDED ACTION: Read and present commendation. BACKGROUND: Attached is a commendation recognizing the contributions and achievements of outgoing Library Commissioner Sam McBane Mulford. FISCAL IMPACTS: 0M CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The commendation will not be presented. ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. Page 1 of 2 D ATTACHMENTS: Attachment A: Commendation for Sam McBane Mulford Page 2 of 2 10 PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF SARATOGA HONORING SAM MCBANE MULFORD FOR HER SERVICE ON THE SARATOGA LIBRARY COMMISSION WHEREAS, Sam McBane Mulford has served on the Saratoga Library Commission since 2007; and WHEREAS, Sam was selected twice by her fellow Commissioners to serve as Chair of the Saratoga Library Commission; and WHEREAS, in her role as Library Commissioner, Sam provided thoughtful recommendations and guidance to the Saratoga City Council on capital improvements to the Saratoga Library; and WHEREAS, Sam led the Commission's effort to build stronger ties with the community it serves; and WHEREAS, Sam guided the Saratoga Library Commission's involvement in the implementation of the Santa Clara County Library District Strategic Plan; and WHEREAS, in addition to her service on the Saratoga Library Commission, Sam has taken an active role in the California Library Association, American Library Association, and Urban Libraries Council; and WHEREAS, Sam and her co- author Ned A. Himmel wrote the book How Green is My Library ?, which serves as a guide on sustainable library operations and design; and WHEREAS, Sam devoted her precious time and resources to serving the Saratoga community and her dedication is apparent to all who have worked with her; NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Saratoga does hereby extend its sincere appreciation and gratitude to Sam McBane Mulford for her committed service and contributions to the City of Saratoga. WITNESS MY HAND AND THE SEAL OF THE CITY OF SARATOGA on this 5th day of December 2012. , Mayor City of Saratoga !� -SAI? G � y SARATOGA CITY COUNCIL 11jem; � MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: Appointment of Saratoga Library Commissioner RECOMMENDED ACTION: 1. Adopt the resolution appointing Susan Calderon to the Library Commission; and 2. Direct the City Clerk to administer the Oaths of Office. BACKGROUND: On November 7, 2012, the City Council held interviews for one vacancy on the Library Commission resulting from the resignation of Sam McBane Mulford from the Library Commission. The term ends October 1, 2014. A total of four applicants were interviewed and Council selected Susan Calderon to fill the unexpired term. Following City Council direction, the City Clerk will administer the Oath of Office to the new Commissioner. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The appointment to the Library Commissions would not be made. ALTERNATIVE ACTION(S): 10M FOLLOW UP ACTION(S): Update the City's Commission Roster. Page 1 of 2 12 ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A: Resolution of Appointment Attachment B: Oath of Office Page 2 of 2 13 RESOLUTION 12- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA APPOINTING ONE MEMBER TO THE LIBRARY COMMISSION WHEREAS, one vacancy was created on the Saratoga Library Commission as a result of the resignation of Sam McBane Mulford; and WHEREAS, the term of Sam McBane Mulford ends October 1, 2014; and WHEREAS, the City publicized the vacancies, accepted applications, and conducted interviews on November 7, 2012; and NOW, THEREFORE, the City Council of the City of Saratoga hereby resolves that the following appointment was made to the Library Commission: LIBRARY COMMISSION Susan Calderon December 5, 2012 -October 1, 2014 The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 5th day of December 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: DATE: Crystal Bothelio, City Clerk 14 , Mayor STATE OF CALIFORNIA COUNTY OF SANTA CLARA I , Susan Calderon, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter. Subscribed and sworn to before me on this 5th day of December 2012. Crystal Morrow City Clerk 15 Susan Calderon, Member Library Commission !� -SAI? G � y SARATOGA CITY COUNCIL 11jem; � MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: City Council Meeting Minutes RECOMMENDED ACTION: Approve City Council minutes for the Special Meeting and the Regular Meeting on November 7, 2012. BACKGROUND: The draft minutes for the Special Meeting and Regular Meeting on November 7, 2012 are attached to this report for Council review and approval. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: N/A ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Retain minutes for legislative history. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. Page 1 of 2 16 ATTACHMENTS: Attachment A: November 7, 2012 Special and Regular Meeting Minutes Page 2 of 2 17 MINUTES SARATOGA SPECIAL CITY COUNCIL MEETING NOVEMBER 7, 2012 The City Council conducted Library Commission applicant interviews at 5:30 p.m. and then called the Joint Meeting with the Library Commission and Friends of the Saratoga Libraries at 6:00 p.m. in the Administrative Conference Room at City Hall at 13777 Fruitvale Avenue. SARATOGA REGULAR CITY COUNCIL MEETING Mayor Page called the meeting to order at 7:05 p.m. in honor of Mayor Henry J. Kraus, Jr. who passed away on September 14, 2012 and led the Pledge of Allegiance. ROLL CALL PRESENT Council Members Manny Cappello, Howard Miller, Emily Lo, Vice Mayor Jill Hunter, Mayor Chuck Page ABSENT: None ALSO PRESENT: Dave Anderson, City Manager Richard Taylor, City Attorney Crystal Bothelio, City Clerk John Cherbone, Public Works Director Mary Furey, Finance and Administrative Services Director REPORT OF CITY CLERK ON POSTING OF AGENDA City Clerk Crystal Bothelio reported that pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on November 2, 2012. COMMUNICATIONS FROM COMMISSIONS & PUBLIC Oral Communications on Non- Agendized Items No one requested to speak. Oral Communications - Council Direction to Staff None Communications from Boards and Commissions Library Commission Chair Linda Baxter provided a summary of the Commission's Joint Meeting with the City Council. Gayathri Kanth, Saratoga Community Librarian, shared that she has enjoyed working with the Saratoga Library Commission and Friends of the Saratoga Libraries. She also shared information about an event that the Library is hosting on November 18, 2012 called Battle of the Books. im Terri Creamer with the Friends of the Saratoga Libraries thanked the Council for its support and providing a building for Book -Go- Round, which allows the Friends to raise $125,000 to $155,000 each year to support the Saratoga Library. Council Direction to Staff None ANNOUNCEMENTS Council Member Lo announced that there will be a reception welcoming the Sister City delegation from Muko, Japan on Friday, November 9, 2012 at 10:00 a.m. at the Warner Hutton House. The delegation will be in Saratoga from November 8, 2012 to November 10, 2012. While in Saratoga, the group will visit Hakone Gardens, the Cooper - Garrod Vineyard, and more. Council Member Cappello shared that SASCC will be holding a dance on December 1, 2012 at 7:00 p.m. at the Saratoga Prospect Center. The event will include music from the 50's, 60's, and 70's. Vice Mayor Hunter stated that the annual Holiday Tree Lighting and Wine Stroll will be November 23, 2012 at 5:00 p.m. The event will include a tree lighting ceremony, wine stroll, holiday music, and more. Council Member Miller made an announcement regarding the Silicon Valley Turkey Trot and encouraged his fellow Council Members and Saratoga residents to sign up for the 5k walk/run. Mayor Page shared that the City is accepting applications for the Parks and Recreation Commission. Applications are available at City Hall or on the City website and are due November 27, 2012. CEREMONIAL ITEMS 1. Proclamations for 2012 Synopsys Silicon Valley Science and Technology Championship Participants from Saratoga Recommended action: Present proclamations to Saratoga students who participated in the Synopsys Silicon Valley Science and Technology Championship in 2012. Mayor Page presented the proclamations to the students who participated in the Synopsys Silicon Valley Science and Technology Championship. 2. Commendations for Disaster Planning Efforts Recommended action: Present commendations for Disaster Planning Efforts to Our Lady of Fatima Villa, Saint Andrew's Episcopal Church, and Saratoga Sub -Acute Hospital. Mayor Page presented the proclamations to representatives of Our Lady of Fatima Villa, Saint Andrew's Episcopal Church, and Saratoga Sub -Acute Hospital. 2 19 SPECIAL PRESENTATIONS 3. El Camino Hospital Presentation Recommended action: Listen to presentation on the El Camino Hospital District by Tomi Ryba, President and Chief Executive Officer of the El Camino Hospital. Tomi Ryba, Chief Executive Officer of El Camino Hospital, gave a presentation to the City Council on the El Camino Hospital District. Mayor Page invited public comment on the item. No one requested to speak. CONSENT CALENDAR 4. City Council Meeting Minutes Recommended action: Approve City Council minutes for the Special Meeting and the Regular Meeting on October 17, 2012. MILLER /HUNTER MOVED TO APPROVE CITY COUNCIL MINUTES FOR THE SPECIAL MEETING AND THE REGULAR MEETING ON OCTOBER 17, 2012. MOTION PASSED 5 -0 -0. 5. Review of Accounts Payable Check Registers Recommended action: Review and accept check registers for the following accounts payable payment cycles: 10/16/2012 10/23/2012 10/30/2012 MILLER/HUNTER MOVED TO ACCEPT CHECK REGISTERS FOR THE FOLLOWING ACCOUNTS PAYABLE PAYMENT CYCLES: 10/16/2012 10/23/2012 10/30/2012 MOTION PASSED 5 -0 -0. 6. Treasurer's Report for the Month Ended August 31, 2012 Recommended action: Review and accept the Treasurer's Report for the month ended August 31, 2012. MILLER/HUNTER MOVED TO ACCEPT THE TREASURER'S REPORT FOR THE MONTH ENDED AUGUST 31, 2012. MOTION PASSED 5 -0 -0. 20 7. Treasurer's Report for the Month Ended September 30, 2012 Recommended action: Review and accept the Treasurer's Report for the month ended September 30, 2012. MILLER/HUNTER MOVED TO ACCEPT THE TREASURER'S REPORT FOR THE MONTH ENDED SEPTEMBER 30, 2012. MOTION PASSED 5 -0 -0. 8. Saratoga Library Solar Project— Notice of Completion Recommended action: Move to accept the Saratoga Library Solar Project as complete and authorize the City Manager to sign the Notice of Completion for the construction contract. MILLER/HUNTER MOVED TO ACCEPT THE SARATOGA LIBRARY SOLAR PROJECT AS COMPLETE AND AUTHORIZE THE CITY MANAGER TO SIGN THE NOTICE OF COMPLETION FOR THE CONSTRUCTION CONTRACT. MOTION PASSED 5 -0 -0. OLD BUSINESS 9. Scheduling of City Council Reorganization Meeting Recommended action: Provide direction to staff regarding the date and time of the City Council Reorganization Meeting. City Clerk Crystal Bothelio presented the staff report on the item to the City Council. Mayor Page requested public comments. No one requested to speak. CAPPELLO /MILLER MOVED TO SCHEDULE THE REORGANIZATION MEETING FOR DECEMBER 5, 2012 AT 7:00 P.M. AND SCHEDULE THE REGULAR MEETING FOR 8:00 P.M. ON DECEMBER 5, 2012. MOTION PASSED 5 -0 -0. NEW BUSINESS 10. Adoption of FFPC Form 806 Listing All Compensated Council Appointments Recommended action: It is recommended the City Council: (1) adopt Form 806 listing all Council appointments for which compensation is received; and (2) direct the City Clerk to post Form 806 on the City's website and update the form as necessary to reflect new appointments and new positions required to be listed on the Form 806. City Attorney Richard Taylor presented the staff report. Mayor Page invited public comment on the item. No one requested to speak. 2 21 MILLER/CAPPELLO MOVED TO ADOPT THE FORM 806 LISTING ALL COUNCIL APPOINTMENTS FOR WHICH COMPENSATION IS RECEIVED; AND DIRECT THE CITY CLERK TO POST FORM 806 ON THE CITY'S WEBSITE AND UPDATE THE FORM AS NECESSARY TO REFLECT NEW APPOINTMENTS AND NEW POSITIONS REQUIRED TO BE LISTED ON THE FORM 806. MOTION PASSED 5 -0 -0. ADHOC & AGENCY ASSIGNMENT REPORTS Mayor Chuck Page Let's Move City Ad Hoc — the Ad Hoc is expected to meet soon regarding the City's continued participation in the Let's Move City program. Santa Clara County Cities Association — the Cities Association will be meeting on November 8, 2012. The annual holiday party will be on December 6, 2012 at the Fairmont Hotel in San Jose. Santa Clara County Cities Association Selection Committee — the Committee is expected to appoint San Jose Council Member Ash Kalra to the Bay Area Air Quality District at the November 8, 2012 meeting. West Valley Mayors and Managers Association — the last meeting of the year for the West Valley Mayors and Managers Association will be on November 28, 2012. Vice Mayor Jill Hunter Historical Foundation — the History Museum has a new exhibit, "Santa's Workshop — Remembering Favorite Toys," that will be on display starting the weekend of November 10, 2012. KSAR Community Access TV Board — there will be a meeting the week of November 12, 2012. SASCC — Vice Mayor Hunter thanked Council Member Cappello for attending the SASCC meeting on her behalf. Village Ad Hoc — there will be a meeting on November 8, 2012 to review a Village Fagade Improvement Program application. West Valley Flood Control & Watershed Advisory Committee — there will be a meeting the week of November 12, 2012. Council Member Emily Lo Library Joint Powers Authority — the JPA reviewed the formula used to determine funding for each of the Santa Clara County libraries. The board decided to keep the formula as it is and revisit it in 5 years to determine if it should be adjusted. Sister City Liaison — there will be a welcoming ceremony for the Muko Sister City Delegation on Friday, November 9, 2012. Council Member Howard Miller Council Finance Committee — the Finance Committee met before the regular meeting to discuss the Budget in Brief, a new State law that requires a $1 fee be applied to business license applications to train a City staff member on ADA compliance, and the budget and reserve policies. West Valley Solid Waste Management Joint Powers Authority — the Authority has formed an Ad Hoc to begin negotiations with the hauler and determine what new services can be provided and the cost of those services. Additionally, an Ad Hoc was also formed to lead recruitment for a new Executive Director. 5 22 Council Member Manny Cappello Santa Clara County Emergency Council — the Council appointed Council Member Cappello as the Vice Chair. Additionally, the Council discussed Anderson Dam Reconstruction. The project is expected to start in 2016. SASCC — Council Member Cappello attended the SASCC Board Meeting on behalf of Vice Mayor Hunter. There was discussion on the recent health fair and the upcoming winter dance and an Italian dinner event in March. CITY COUNCIL ITEMS Mayor Page raised concerns regarding valet parking in the Village. He suggested an audit of parking conditions in the Village followed by Council discussion on the topic and options to install parking sensors that make it easier to identify available spaces and monitor parking. Council Member Miller supported discussion on this topic at a future meeting. CITY MANAGER'S REPORT None ADJOURNMENT MILLERMUNTER MOVED TO ADJOURN THE MEETING AT 8:43 P.M. IN MEMORY OF MAYOR HENRY J. KRAUS, JR. MOTION PASSED 5 -0 -0. Minutes respectfully submitted: Crystal Bothelio, City Clerk 0 23 SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Gina Fitch DEPT. DIRECTOR: Mary Furey SUBJECT: Review of Accounts Payable Check Registers RECOMMENDED ACTION: Review and accept check registers for the following accounts payable payment cycles: 11/6/2012 11/13/2012 11/20/2012 11/27/2012 REPORT SUMMARY: Attached are Check Registers for: Type of Checks Date Starting Check # Ending Check # Total Checks Amount Checks Released Prior Check Register Date Ending Check # Accounts Payable 11/6/12 121484 121550 67 213,704.50 11/06/12 10/30/12 121483 Accounts Payable 11/13/12 121551 121596 46 239,094.39 11/13/12 11/6/12 121550 Accounts Payable 11/20/12 121597 121652 56 429,841.52 11/20/12 11/13/12 1 121596 Accounts Payable 11/27/12 121653 121686 34 1 58,689.57 11/27/12 1 11/20/12 1 121652 Accounts Payable checks issued for $20,000 or greater: Date Check # Issued to Fund Dept. Purpose Amount 11/06/12 121496 Comp Shared Risk Pool Worker's Comp Fund Non - Depart. Quarter Premium 35,480.15 11/06/12 121533 SC Valley Transp. Authority General Non- Depart. Membership 21,691.27 11/13/12 121564 Hydro Tee Irrigation Equip CIP Facilities PW Install Conduit/Misc. 24,218.57 11/13/12 121579 Robert A. Bothman, Inc. CIP Streets PW Saratoga Village Ped Proj. 122,154.66 11/20/12 121625 1 SCC Office of the Sheriff General IPS I Law Enforcement 346,137.83 11/27/12 121663 IDep of Environmental Health General IPW lHazardous Materials 27,718.05 Accounts Payable checks voided during this time period: AP Date I Check # Issued to Reason I Status Amount N/A 24 Cash reductions by fund: Fund # Fund Description 11/06/12 11/13/12 11/20/12 11/27/12 Total 111 General Fund 107,798.97 57,467.54 390,144.14 39,377.53 594,788.18 231 Village Lighting 3,262.61 24.14 3,286.75 232 Azule Lighting 239.29 239.29 233 Sarahills Lighting 251.71 251.71 241 Arroyo de Saratoga Landscape - 242 Bonnet Way Landscape - 243 Carnelian Glen 105.31 105.31 244 Cunningham/Glasgow Landscape 46.83 46.83 245 Fredericksburg Landscape - 246 Greenbriar Landscape 146.32 146.32 247 Kerwin Ranch Landscape 784.50 784.50 248 Leutar Court Landscape - 249 Manor Drive Landscape 72.83 72.83 251 McCartysville Landscape 19.15 19.15 252 Prides Crossing Landscape 34.95 34.95 253 Saratoga Legends Landscape 429.11 429.11 254 Sunland Park Landscape 341.69 341.69 255 Tricia Woods Landscape 23.12 23.12 271 Beauchamps Landscape 385.51 385.51 272 Bellgrove Landscape 541.80 541.80 273 Gateway Landscape - 274 Horseshoe Landscape /Lighting 255.28 255.28 275 Quito Lighting 1,114.20 1,114.20 276 Tollgate LLD 45.78 45.78 277 Village Commercial Landscape 16.18 1,432.51 16.18 1,464.87 278 Brookglen L &L - 311 Library GO Bond Debt Service - 411 CIP Street Projects 9,349.93 70,069.85 15,533.13 16,005.54 110,958.45 412 CIP Park & Trail Projects 13,723.00 13,723.00 413 CIP Facility Projects 27,474.16 23,380.20 50,854.36 414 CIP Admin Projects 958.78 958.78 421 Tree Fund - 431 Grant Fund - CIP Streets 64,047.11 64,047.11 432 Grant Fund - Parks & Trails 8,797.00 8,797.00 433 Grant Fund - Facilities - 434 Grant Fund - Admin Projects 7,257.64 7,257.64 481 Gas Tax Fund - 611 Liability /Risk Mgt 180.00 180.00 612 Workers' Comp 35,814.29 35,814.29 621 Office Support 1,029.55 2,274.36 3,303.91 622 IT Services 4,322.41 800.00 7,597.27 77.48 12,797.16 623 Vehicle & Equipment Maint 1,366.27 2,461.97 3,533.74 1,259.70 8,621.68 624 Building Maintenance 3,786.96 10,232.83 3,690.63 1,929.00 19,639.42 631 Vehicle & Equipment Replacement - 632 IT Equipment Replacement - TOTAL 213,704.50 239,094.39 429,841.52 58,689.57 - 941,329.98 FOLLOW UP ACTION: N/A ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Check Registers in the 'A/P Checks By Period and Year' report format 25 SUNGARD PUBLIC SECTOR PAGE NUMBER: 1 DATE: 11/06/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:22:13 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121106 00:00:00.000' ACCOUNTING PERIOD: 5/13 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - -- 11111 121484 11/06/12 581 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 11111 121485 11/06/12 234 TOTAL CHECK 0.00 69.30 11111 121486 11/06/12 35 11111 121486 11/06/12 35 TOTAL CHECK 0.00 329.00 11111 121487 11/06/12 500 11111 121487 11/06/12 500 11111 121487 11/06/12 500 11111 121487 11/06/12 500 TOTAL CHECK 11111 121488 11/06/12 369 11111 121488 11/06/12 369 11111 121488 11/06/12 369 TOTAL CHECK 11111 121489 11/06/12 13 11111 121490 11/06/12 1013 11111 121490 11/06/12 1013 11111 121490 11/06/12 1013 11111 121490 11/06/12 1013 TOTAL CHECK 11111 121491 11/06/12 95 11111 121492 11/06/12 973 11111 121493 11/06/12 179 11111 121494 11/06/12 930 11111 121494 11/06/12 930 TOTAL CHECK 11111 121495 11/06/12 235 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT $15 SEWER SERVICE 6246202 • T & T 6246202 • T & T 6246202 • T & T 6246202 • T & T 6246202 • T & T 1117102 • T & T 6246202 • T & T 6246202 • T & T 1115301 • T & T 1115301 • T & T 1115301 • T & T 1115301 • T & T 1115301 • T & T 2775302 ----- DESCRIPTION - -- SEWER LINE CLEANING MONTHLY RECURRING CHG ALARM SYSTEM PHONES SUPERTRUNK SR. CENTER ALARMS EMERGENCY RESPONSE PROSPECT CENTER PROSPECT RD FIRE ALRM EL QUITO IRR MODEM CORP YRD EMERG LINE BLANEY PHONE MODEM TITUS /PROSPECT MEDIAN HISTORICAL PARK BIG BASIN WAY ACCENT GRAPHICS 1116101 DESK PLATE ACCENT GRAPHICS 1116102 NAME TAGS AL ZEINY 1114101 REFUND VAR12 -0003 AL ZEINY 1115102 REFUND VAR12 -0003 AL ZEINY 1114101 REFUND VAR12 -0003 AL ZEINY 1114101 REFUND VAR12 -0003 BORTZ, SHERI L 1116101 INSTRUCTOR -YOGA BORTZ, SHERI L 1116101 INSTRUCTOR -YOGA BORTZ, SHERI L 1116101 INSTRUCTOR -YOGA BRYANT, CHRISTOPHER 1116101 INSTRUCTOR- GUITAR CAL SPORTS CLUB 1116101 INSTRUCTOR- FENCING CAL SPORTS CLUB 1116101 INSTRUCTOR- ARCHERY CAL SPORTS CLUB 1116101 INSTRUCTOR- ARCHERY CAL SPORTS CLUB 1116101 INSTRUCTOR - FENCING CAL -WEST LIGHTING & SIGN 1115301 CHALLENGER SPORTS CORP 1116101 CIM AIR, INC 4139321 -005 COLE SUPPLY COMPANY, INC 1115301 COLE SUPPLY COMPANY, INC 1115301 COMCAST 6223201 26 KEVIN MORAN LIGHTS INSTRUCTOR -CAMPS CITY HALL HVAC 2 REPLA PARKS SUPPLIES PARKS SUPPLIES MNTHLY SVC10 /26 -11/25 SALES TAX AMOUNT 0.00 88.00 0.00 178.43 0.00 89.60 0.00 415.17 0.00 31.92 0.00 189.91 0.00 152.35 0.00 30.65 0.00 15.88 0.00 41.93 0.00 15.70 0.00 16.18 0.00 16.18 0.00 16.18 0.00 1,210.08 0.00 75.65 0.00 108.17 0.00 183.82 0.00 2,700.00 0.00 1,000.00 0.00 4,680.00 0.00 300.00 0.00 8,680.00 0.00 205.00 0.00 205.00 0.00 615.00 0.00 1,025.00 0.00 396.90 0.00 69.30 0.00 554.40 0.00 554.40 0.00 69.30 0.00 1,247.40 0.00 164.33 0.00 329.00 0.00 17,467.00 0.00 195.08 0.00 450.15 0.00 645.23 0.00 117.28 SUNGARD PUBLIC SECTOR PAGE NUMBER: 2 DATE: 11/06/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:22:13 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121106 00:00:00.000' ACCOUNTING PERIOD: 5/13 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT COMP SHARED RISK POOL /AB 6128501 CONTRACT SWEEPING SERVIC 1115103 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 ----- DESCRIPTION - - - - -- Q PREMIUM 10/1 -12/31 STREET SWEEPING SERVIC CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CPO LTD FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121496 11/06/12 924 11111 121497 11/06/12 1023 11111 121498 11/06/12 250 11111 121498 11/06/12 250 11111 121498 11/06/12 250 11111 121498 11/06/12 250 11111 121498 11/06/12 250 11111 121498 11/06/12 250 11111 121498 11/06/12 250 TOTAL CHECK 11111 121499 11/06/12 589 11111 121500 11/06/12 500 11111 121501 11/06/12 284 11111 121502 11/06/12 616 11111 121503 11/06/12 211 11111 121503 11/06/12 211 11111 121503 11/06/12 211 TOTAL CHECK 11111 121504 11/06/12 260 11111 121505 11/06/12 260 11111 121506 11/06/12 1 11111 121507 11/06/12 573 11111 121508 11/06/12 370 11111 121509 11/06/12 390 11111 121510 11/06/12 651 11111 121510 11/06/12 651 11111 121510 11/06/12 651 11111 121510 11/06/12 651 11111 121510 11/06/12 651 11111 121510 11/06/12 651 11111 121510 11/06/12 651 TOTAL CHECK 11111 121511 11/06/12 470 11111 121511 11/06/12 470 11111 121511 11/06/12 470 TOTAL CHECK - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT COMP SHARED RISK POOL /AB 6128501 CONTRACT SWEEPING SERVIC 1115103 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 COTTON SHIRES AND ASSOCI 111 ----- DESCRIPTION - - - - -- Q PREMIUM 10/1 -12/31 STREET SWEEPING SERVIC CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CITY GEOTECHNICAL CONS CPO LTD CHEKHANOVSKAYA 6213102 MNTHLY SVC 9/22 -10/21 CRAIG NICHOLSON 1116101 111 REFUND 07 -350 CSMFO ELLA 1113101 CSMFO WEBINAR DAVCO WATERPROOFING SVC, 6246202 ROOF REPAIRS DEEP CLIFF GOLF COURSE 1116101 INSTRUCTOR -GOLF DEEP CLIFF GOLF COURSE 1116101 INSTRUCTOR -GOLF DEEP CLIFF GOLF COURSE 1116101 INSTRUCTOR -GOLF DEPARTMENT OF PESTICIDE DEPARTMENT OF PESTICIDE DEPARTMENT OF REVENUE STATE OF CALIFORNIA ECONOMY LUMBER ELECTRICAL DISTRIBUTORS 1115301 1115301 1117101 1115201 4119111 -002 4139351 -001 ELLA CHEKHANOVSKAYA 1116101 ELLA CHEKHANOVSKAYA 1116101 ELLA CHEKHANOVSKAYA 1116101 ELLA CHEKHANOVSKAYA 1116101 ELLA CHEKHANOVSKAYA 1116101 ELLA CHEKHANOVSKAYA 1116101 ELLA CHEKHANOVSKAYA 1116101 PESTICIDE LIC RICK D PESTICIDE LIC JUAREZ PARKING CIT 10/12 SIG LIGHTS 7/12 -9/12 STREETS SUPPLIES LIGHTS FOR SARATOGA PR INSTRUCTOR GYMNASTICS INSTRUCTOR- GYMNASTICS INSTRUCTOR- GYMNASTICS INSTRUCTOR- GYMNASTICS INSTRUCTOR- GYMNASTICS INSTRUCTOR- GYMNASTICS INSTRUCTOR- GYMNASTICS GREGORIAN, AGNES 1116101 INSTRUCTOR -SALSA GREGORIAN, AGNES 1116101 INSTRUCTOR -SALSA GREGORIAN, AGNES 1116101 INSTRUCTOR -DANCE 27 SALES TAX AMOUNT 0.00 35,480.35 0.00 13,239.50 0.00 536.25 0.00 1,196.25 0.00 1,673.75 0.00 742.50 0.00 1,594.00 0.00 1,858.05 0.00 1,898.19 0.00 9,498.99 0.00 961.25 0.00 1,960.00 0.00 25.00 0.00 1,095.50 0.00 324.48 0.00 325.26 0.00 216.84 0.00 866.58 0.00 60.00 0.00 60.00 0.00 37.50 0.00 1,363.10 0.00 20.77 0.00 5,780.05 0.00 204.02 0.00 143.12 0.00 224.72 0.00 407.42 0.00 329.01 0.00 7.97 0.00 300.41 0.00 1,616.67 0.00 180.00 0.00 322.50 0.00 222.00 0.00 724.50 SUNGARD PUBLIC SECTOR PAGE NUMBER: 3 DATE: 11/06/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:22:13 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121106 00:00:00.000' ACCOUNTING PERIOD: 5/13 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT HYDROTEC IRRIGATION EQUI 4139314 -001 HYDROTEC IRRIGATION EQUI 4139314 -001 INTERSTATE TRAFFIC CONTR 4119111 -002 IVKA TRACEY 1116101 JOSON FENCE 4329274 -001 JUST FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121512 11/06/12 14 11111 121512 11/06/12 14 TOTAL CHECK FOR KICKS 11111 121513 11/06/12 63 11111 121514 11/06/12 500 11111 121515 11/06/12 917 11111 121516 11/06/12 118 11111 121516 11/06/12 118 11111 121516 11/06/12 118 11111 121516 11/06/12 118 11111 121516 11/06/12 118 TOTAL CHECK 349.00 0.00 11111 121517 11/06/12 127 11111 121518 11/06/12 100 11111 121519 11/06/12 159 11111 121519 11/06/12 159 11111 121519 11/06/12 159 TOTAL CHECK 11111 121520 11/06/12 739 11111 121521 11/06/12 500 11111 121522 11/06/12 499 11111 121523 11/06/12 50 11111 121524 11/06/12 1011 11111 121524 11/06/12 1011 11111 121524 11/06/12 1011 TOTAL CHECK 11111 121525 11/06/12 135 11111 121526 11/06/12 912 11111 121527 11/06/12 1 11111 121528 11/06/12 540 11111 121529 11/06/12 195 11111 121530 11/06/12 259 11111 121530 11/06/12 259 TOTAL CHECK - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT HYDROTEC IRRIGATION EQUI 4139314 -001 HYDROTEC IRRIGATION EQUI 4139314 -001 INTERSTATE TRAFFIC CONTR 4119111 -002 IVKA TRACEY 1116101 JOSON FENCE 4329274 -001 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 ----- DESCRIPTION - - - -- CONDUIT FOR CITY HALL CONDUIT FOR CITY HALL sa iSiov0=1 to" 0W REFUND -CLS CANCELLED JOES'S TRAIL PROJECT INSTRUCTOR- SOCCER INSTRUCTOR- SOCCER INSTRUCTOR- SOCCER INSTRUCTOR - SOCCER INSTRUCTOR- SOCCER KELLY MOORE PAINT COMPAN 6246202 PAINTING MATERIALS KSAR 3,121.61 111 PEG FEES THROUGH 9/30 KUHN, BRIAN 1116101 INSTRUCTOR- KARATE KUHN, BRIAN 1116101 INSTRUCTOR - KARATE KUHN, BRIAN 1116101 INSTRUCTOR- KARATE LAFCO 409.50 4129281 -002 USA BOUNDARY DEPOSIT MARIO HERNANDEZ 111 REFUND FACILITY CARPENTERS LOCAL 2236 (M 111 DED :3000 DUES MOORE, KAREN 1116101 INSTRUCTOR - CHOCOLATE NICOLE BETTRAY 1116101 INSTRUCTOR -YOGA NICOLE BETTRAY 1116101 INSTRUCTOR -YOGA NICOLE BETTRAY 1116101 INSTRUCTOR -YOGA NORTH BAY BLDG MAINTENAN 6246202 NORTHERN UNDERGROUND CON 4119141 -002 OFF OF SHERIFF - FISCAL SV 1113301 ORCHARD SUPPLY 6246202 PAPA MEMBERSHIP 1115301 PLAYGROUNDS UNLIMITED 4129238 -001 PLAYGROUNDS UNLIMITED 1115301 JANITORIAL SERVICES EMERG STORM DRAIN FINGERPRINT SERVICES FACILITIES SUPPLIES MEMBERSHIP RICK D INSTL SIGN RAVENWOOD RPLC SEAT BEAUCHAMP SALES TAX AMOUNT 0.00 858.00 0.00 3,121.61 0.00 3,979.61 0.00 260.10 0.00 109.00 0.00 8,797.00 0.00 252.00 0.00 31.50 0.00 283.50 0.00 409.50 0.00 535.50 0.00 1,512.00 0.00 40.85 0.00 4,371.81 0.00 64.00 0.00 316.00 0.00 118.50 0.00 498.50 0.00 11,868.00 0.00 300.00 0.00 330.00 0.00 66.00 0.00 256.50 0.00 58.00 0.00 34.50 0.00 349.00 0.00 190.00 0.00 7,300.00 0.00 20.00 0.00 395.87 0.00 45.00 0.00 1,855.00 0.00 1,813.00 0.00 3,668.00 SUNGARD PUBLIC SECTOR PAGE NUMBER: 4 DATE: 11/06/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:22:13 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121106 00:00:00.000' ACCOUNTING PERIOD: 5/13 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 121531 11/06/12 602 PRECISION CONCRETE CUTTI 4119141 -001 SIDEWALK REPAIR 0.00 1,205.53 11111 121532 11/06/12 87 SAN JOSE WATER COMPANY 6246202 BUILDINGS 0.00 437.72 11111 121532 11/06/12 87 SAN JOSE WATER COMPANY 1115301 PARKS /OPEN SPACE 0.00 7,947.28 11111 121532 11/06/12 87 SAN JOSE WATER COMPANY 1115301 MEDIANS /PARKWAYS 0.00 1,302.62 11111 121532 11/06/12 87 SAN JOSE WATER COMPANY 2765302 TOLLGATE 0.00 45.78 TOTAL CHECK 0.00 9,733.40 11111 121533 11/06/12 91 SANTA CLARA VALLEY TRANS 1115101 MEMBER FEE FY 2013 0.00 21,691.27 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 88.00 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 383.64 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 287.73 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 656.88 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 164.22 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 311.19 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 138.00 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 267.03 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 287.73 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 671.37 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 767.28 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 383.64 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 142.83 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 287.73 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 623.07 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 671.37 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 287.73 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 190.44 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 575.46 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 356.04 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 89.01 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 479.55 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 383.64 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 47.61 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 191.82 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 332.24 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 267.03 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 35.19 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 191.82 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 95.91 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 96.60 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 287.73 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 47.96 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 23.81 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 82.80 11111 121535 11/06/12 729 SARATOGA SCHOOL OF DANCE 1116101 INSTRUCTOR -DANCE 0.00 162.00 TOTAL CHECK 0.00 10,356.10 11111 121536 11/06/12 136 SCOTTY'S AUTOMOTIVE 6235202 MAINTENANCE VEH #01 0.00 977.83 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1114101 LEGAL LINER 4618549 0.00 115.32 29 SUNGARD PUBLIC SECTOR PAGE NUMBER: 5 DATE: 11/06/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:22:13 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121106 00:00:00.000' ACCOUNTING PERIOD: 5/13 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4609696 0.00 123.69 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4609719 0.00 126.48 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4618629 0.00 52.08 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4618632 0.00 64.17 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4618640 0.00 53.01 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4618644 0.00 58.59 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4618650 0.00 115.32 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4618660 0.00 948.60 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4632425 0.00 53.01 11111 121537 11/06/12 162 SILICON VALLEY COMM NEWS 1112201 LEGAL LINER 4632436 0.00 100.44 TOTAL CHECK 0.00 1,810.71 11111 121538 11/06/12 633 SMITH, CRAIG 1116101 EXCURSION 10/25/12 0.00 300.00 11111 121539 11/06/12 587 STATE BOARD OF EQUALIZAT 111 LAFCO FEE GARROD FARM 0.00 300.00 11111 121540 11/06/12 253 STEVE BENZING ARCHITECT 4139322 -001 DESIGN CONCESSION AREA 0.00 247.50 11111 121541 11/06/12 1077 SUNNYVALE BUILDING MAINT 1115301 OCT SAT JANITORIAL SV 0.00 715.00 11111 121541 11/06/12 1077 SUNNYVALE BUILDING MAINT 1115301 OCT MON JANITORIAL SV 0.00 875.00 11111 121541 11/06/12 1077 SUNNYVALE BUILDING MAINT 1115301 OCT FRI JANITORIAL SV 0.00 700.00 11111 121541 11/06/12 1077 SUNNYVALE BUILDING MAINT 1115301 OCT PARKS JANITORIAL 0.00 198.00 TOTAL CHECK 0.00 2,488.00 11111 121542 11/06/12 1032 UNITED STATES TREASURY ill DED:2012 IRS LEVY 0.00 405.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111101 PUBLIC POLICY LUNCH 0.00 45.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111101 PUBLIC POLICY LUNCH 0.00 45.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111101 COUNCIL MEETING 0.00 16.40 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111101 COUNCIL MEETING 0.00 218.56 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1112101 PUBLIC POLICY LUNCH 0.00 45.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1118302 RIBBON CUTTING EVENT 0.00 16.47 11111 121546 11/06/12 391 US BANK PURCHASING CARD 4119111 -002 STREETS SUPPLIES 0.00 41.66 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6235202 EQUIPMENT MAINTENANCE 0.00 20.33 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6235202 RETURN PARTS 0.00 -10.13 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FAC SUPPLIES RETURN 0.00 - 199.46 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 34.52 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FAC SUPPLIES RETURN 0.00 - 894.47 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 342.45 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 35.72 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 163.57 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 233.71 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 24.34 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FACILITES SUPPLIES 0.00 8.09 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1115101 POSTAGE 0.00 19.20 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1113101 TRAINING SUNGARD 0.00 80.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1113101 TRAINING GFOA 0.00 135.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1114101 POSTAGE 0.00 5.75 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 OFFICE SUPPLIES 0.00 95.56 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 198.41 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 155.53 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1115201 HAZMAT TRAINING 0.00 71.32 30 SUNGARD PUBLIC SECTOR PAGE NUMBER: DATE: 11/06/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:22:13 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121106 00:00:00.000' ACCOUNTING PERIOD: 5/13 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1115201 POSTAGE 0.00 9.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1115301 OFFICE SUPPLIES 0.00 31.77 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1115301 OFFICE SUPPLIES 0.00 10.98 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6223201 OCT ONLINE BACKUPS 0.00 119.45 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6223201 MINI DP CONNECTOR 0.00 48.71 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6223201 CONFERENCE TRAVEL 0.00 445.60 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6223201 CONFERENCE LODGING 0.00 247.62 11111 121546 11/06/12 391 US BANK PURCHASING CARD 4119142 -011 SIGN BRACKETS DOWNTN 0.00 248.55 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116101 OFFICE SUPPLIES 0.00 44.99 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116101 PLUG & PAY PROC FEE 0.00 15.60 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116101 PLUS & PAY PROC FEE 0.00 15.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6118401 CPUC RISK MGMNT EXAM 0.00 180.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6246202 CONFERENCE RM TABLE 0.00 442.93 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1115201 HAZ MAT TRAINING 0.00 44.86 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111101 COUNCIL MEETING 0.00 165.22 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1112101 CITY MGR CONFERENCE 0.00 625.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111101 AGENDA MEETING 0.00 9.98 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111101 AGENDA MEETING 0.00 17.90 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1112201 CITY CLERK MEMBERSHIP 0.00 185.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111101 PUBLIC POLICY LUNCH 0.00 90.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1112201 NOTARY TRAINING 0.00 342.61 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1114201 PUBLIC STORAGE 0.00 89.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111201 AIA CONF TINA WALIA 0.00 80.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1114101 CEQA WRKSHP MCCORMICK 0.00 190.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1114101 CEQA WRKSHP RIORDAN 0.00 190.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6128501 CREDIT MTG SUPPLIES 0.00 -17.61 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6128501 MEETING SUPPLIES 0.00 20.46 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1114101 PUBLICATION 0.00 65.69 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111201 AIA CONF YAN ZHAO 0.00 80.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6128501 MEETING SUPPLIES 0.00 195.08 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1111201 AIA CONF BERNALD 0.00 80.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116101 EMPLOYEE BENEFIT 0.00 16.98 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1113301 POSTAGE 0.00 10.60 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1113301 HR MEMBERSHIP SOC 0.00 165.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6128501 SUMMER WINDS CERT 0.00 90.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1113301 ICMA TRAINING 0.00 223.50 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1113301 ORAL BOARD 0.00 37.34 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116101 EXCURSION 9/21/12 0.00 280.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 4119142 -004 VILLAGE PROJECT SIGN 0.00 253.29 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1112101 PROF DUES ROTARY 0.00 170.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6235202 MAINTENANCE VEH #122 0.00 49.83 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1115201 HAZ MAT TRAINING 0.00 28.68 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1115201 OFFICE SUPPLIES 0.00 5.79 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6235202 STREETS SMALL TOOLS 0.00 26.93 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6235202 MAINTENANCE VEH #121 0.00 99.92 11111 121546 11/06/12 391 US BANK PURCHASING CARD 6235202 MAINTENANCE VEH #121 0.00 201.56 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116102 YOUTH COUNCIL 0.00 453.24 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1113301 TRAINING 0.00 108.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116101 EXCURSION 12/6/12 0.00 1,000.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116101 EXCURSION 12/6/12 0.00 1,000.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116101 EXCURSION 12/6/12 0.00 1,000.00 11111 121546 11/06/12 391 US BANK PURCHASING CARD 1116101 EXCURSION 12/6/12 0.00 158.00 31 SUNGARD PUBLIC SECTOR PAGE NUMBER: 7 DATE: 11/06/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:22:13 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121106 00:00:00.000' ACCOUNTING PERIOD: 5/13 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121546 11/06/12 391 11111 121546 11/06/12 391 11111 121546 11/06/12 391 TOTAL CHECK TECHNICAL SERVICES, 6223201 11111 121547 11/06/12 993 11111 121547 11/06/12 993 TOTAL CHECK IT SUPPORT SERVICES - 11111 121548 11/06/12 439 11111 121549 11/06/12 696 11111 121549 11/06/12 696 11111 121549 11/06/12 696 11111 121549 11/06/12 696 11111 121549 11/06/12 696 TOTAL CHECK 11111 121550 11/06/12 447 11111 121550 11/06/12 447 TOTAL CHECK TOTAL CASH ACCOUNT TOTAL FUND TOTAL REPORT - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT US BANK PURCHASING CARD 1116101 US BANK PURCHASING CARD 6128501 US BANK PURCHASING CARD 4119111 -002 VIVIAN LIU VIVIAN LIU 1116101 1116101 - - - -- DESCRIPTION ADVERTISING EMPLOYEE BENEFIT STREETS SUPPLIES INSTRUCTOR -TAI CHI INSTRUCTOR -TAI CHI XEROX CORPORATION 6213102 SIN: RYU272971 MAINTEN ZAG TECHNICAL SERVICES, 6223201 IT SUPPORT SERVICES - ZAG TECHNICAL SERVICES, 6223201 IT SUPPORT SERVICES - ZAG TECHNICAL SERVICES, 6223201 IT SUPPORT SERVICES - ZAG TECHNICAL SERVICES, 6223201 IT SUPPORT SERVICES - ZAG TECHNICAL SERVICES, 6223201 IT SUPPORT SERVICES - ZEE MEDICAL SERVICE 1115201 FIRST AID SUPPLIES ZEE MEDICAL SERVICE 1115301 FIRST AID SUPPLIES 32 SALES TAX AMOUNT 0.00 85.00 0.00 46.01 0.00 20.03 0.00 10,790.62 0.00 715.00 0.00 660.00 0.00 1,375.00 0.00 68.30 0.00 241.25 0.00 453.75 0.00 643.75 0.00 206.25 0.00 1,798.75 0.00 3,343.75 0.00 83.48 0.00 83.47 0.00 166.95 0.00 213,704.50 0.00 213,704.50 0.00 213,704.50 SUNGARD PUBLIC SECTOR PAGE NUMBER: 1 DATE: 11/13/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:47:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121113 00:00:00.000' ACCOUNTING PERIOD: 5/13 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT ANITA SATHE 111 C.B. HANNEGANS 1113301 CALIFORNIA MUNICIPAL STA 1113101 CAPITOL EXPRESSWAY FORD 6235202 CCAC 1112201 CITY OF SAN JOSE 1117101 CPO LTD 6213102 CSMFO 1113101 DAVID J. POWERS & ASSOC 4119152 -002 DAVID J. POWERS & ASSOC 4319152 -002 DE LAGE LANDEN PUBLIC FI 6213102 DEEP CLIFF GOLF COURSE 1116101 ECS IMAGING, INC 6223201 ECS IMAGING, INC 6223201 FEHR & PEERS 1115101 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 2465302 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 4139314 -002 IAN GEDDES TREE CARE, IN 1115201 IVKA TRACEY 1116101 JUST FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121551 11/13/12 500 11111 121552 11/13/12 1102 11111 121553 11/13/12 51 11111 121554 11/13/12 1099 11111 121555 11/13/12 569 11111 121556 11/13/12 517 11111 121557 11/13/12 589 11111 121558 11/13/12 284 11111 121559 11/13/12 206 11111 121559 11/13/12 206 TOTAL CHECK 23,380.20 0.00 11111 121560 11/13/12 564 11111 121561 11/13/12 211 11111 121562 11/13/12 373 11111 121562 11/13/12 373 TOTAL CHECK 400.00 11111 121563 11/13/12 423 11111 121564 11/13/12 14 11111 121564 11/13/12 14 11111 121564 11/13/12 14 11111 121564 11/13/12 14 11111 121564 11/13/12 14 11111 121564 11/13/12 14 11111 121564 11/13/12 14 TOTAL CHECK 11111 121565 11/13/12 19 11111 121566 11/13/12 500 11111 121567 11/13/12 118 11111 121567 11/13/12 118 11111 121567 11/13/12 118 11111 121567 11/13/12 118 11111 121567 11/13/12 118 TOTAL CHECK 11111 121568 11/13/12 123 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT ANITA SATHE 111 C.B. HANNEGANS 1113301 CALIFORNIA MUNICIPAL STA 1113101 CAPITOL EXPRESSWAY FORD 6235202 CCAC 1112201 CITY OF SAN JOSE 1117101 CPO LTD 6213102 CSMFO 1113101 DAVID J. POWERS & ASSOC 4119152 -002 DAVID J. POWERS & ASSOC 4319152 -002 DE LAGE LANDEN PUBLIC FI 6213102 DEEP CLIFF GOLF COURSE 1116101 ECS IMAGING, INC 6223201 ECS IMAGING, INC 6223201 FEHR & PEERS 1115101 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 2465302 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 1115301 HYDROTEC IRRIGATION EQUI 4139314 -002 IAN GEDDES TREE CARE, IN 1115201 IVKA TRACEY 1116101 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 ----- DESCRIPTION - - - - -- REFUND FACILITY DEPOSIT- HOLIDAY EVENT CAFR STATS INFO MAINTENANCE VEH #99 MEMBERSHIP DUES ANIMAL SERVICES 11/12 MNTHLY SRVC 7/22 -8/21 MARY FUREY 2013 CSMFO QUITO RD BRIDGES PROJE QUITO RD BRIDGES PROJE COPIER LEASES INSTRUCTOR -GOLF ECS LASERFICHE SRVC ECS LASERFICHE SRVC CITY TRAFFIC ENGINEERI MILLER GATE BACKFLOW SPRING BLOSSOM 0 -RING CIVIC CTR SPRINKLER GREENBRIAR BACKFLOW CITY HALL CONDUIT BLANEY PLAZA RPR LEAK CONDUIT FOR ADMIN BUIL REMOVAL OF TWO EUCALYP REFUND CLS CANCELLED INSTRUCTOR- SOCCER INSTRUCTOR- SOCCER INSTRUCTOR- SOCCER INSTRUCTOR- SOCCER INSTRUCTOR- SOCCER KELEX SECURITY 6246202 MUSEUM ALARMS 33 SALES TAX AMOUNT 0.00 300.00 0.00 1,000.00 0.00 750.00 0.00 1,984.14 0.00 165.00 0.00 14,719.31 0.00 825.40 0.00 110.00 0.00 443.17 0.00 1,772.66 0.00 2,215.83 0.00 1,413.00 0.00 159.12 0.00 500.00 0.00 300.00 0.00 800.00 0.00 8,210.07 0.00 71.00 0.00 71.76 0.00 109.09 0.00 146.32 0.00 276.63 0.00 163.57 0.00 23,380.20 0.00 24,218.57 0.00 1,810.00 0.00 39.00 0.00 252.00 0.00 31.50 0.00 283.50 0.00 409.50 0.00 535.50 0.00 1,512.00 0.00 400.00 SUNGARD PUBLIC SECTOR PAGE NUMBER: 2 DATE: 11/13/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:47:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121113 00:00:00.000' ACCOUNTING PERIOD: 5/13 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121569 11/13/12 100 11111 121570 11/13/12 566 11111 121571 11/13/12 1098 11111 121572 11/13/12 89 11111 121573 11/13/12 1075 11111 121574 11/13/12 135 11111 121575 11/13/12 145 11111 121575 11/13/12 145 11111 121575 11/13/12 145 11111 121575 11/13/12 145 11111 121575 11/13/12 145 11111 121575 11/13/12 145 11111 121575 11/13/12 145 TOTAL CHECK 1115301 PARKS /OPEN SPACE 11111 121576 11/13/12 173 11111 121576 11/13/12 173 11111 121576 11/13/12 173 TOTAL CHECK PRIDES CROSSING PACIFIC GAS & ELECTRIC 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 11111 121577 11/13/12 173 TOTAL CHECK 11111 121578 11/13/12 393 11111 121579 11/13/12 877 11111 121579 11/13/12 877 11111 121579 11/13/12 877 11111 121579 11/13/12 877 TOTAL CHECK 11111 121580 11/13/12 87 11111 121580 11/13/12 87 11111 121580 11/13/12 87 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT ----- DESCRIPTION ------ KSAR 111 PEG FEES THRU 9/30/12 LEHR AUTO ELECTRIC 6235202 EQUIPMENT PARTS LIL SLUGGERS CHICAGO 1116101 INSTRUCTOR -T -BALL MY FIRST ART CLASS 1116101 INSTRUCTOR -ART NESSIA ALISION STARR 1116101 INSTRUCTOR -HULA HOOP NORTH BAY BLDG MAINTENAN 6246202 JANITORIAL SERVICES OFFICE DEPOT INC. 1114101 OFFICE SUPPLIES OFFICE DEPOT INC. 1114201 OFFICE SUPPLIES OFFICE DEPOT INC. 1114101 OFFICE SUPPLIES OFFICE DEPOT INC. 1115201 OFFICE SUPPLIES OFFICE DEPOT INC. 1115301 OFFICE SUPPLIES OFFICE DEPOT INC. 6246202 OFFICE SUPPLIES OFFICE DEPOT INC. 1114101 OFFICE SUPPLIES PACIFIC GAS & ELECTRIC 2315302 VILLAGE LIGHTING PACIFIC GAS & ELECTRIC 6246202 NATURAL GAS VEHICLE PACIFIC GAS & ELECTRIC 1115301 PUB LIB /LNDSCP LIGHTS PACIFIC GAS & ELECTRIC 6246202 BUILDINGS PACIFIC GAS & ELECTRIC 1115201 TRAF SIG /STREET LIGHT PACIFIC GAS & ELECTRIC 1115301 PARKS /OPEN SPACE PACIFIC GAS & ELECTRIC 2315302 VILLAGE LIGHTING PACIFIC GAS & ELECTRIC 2325302 AZULE LIGHTING PACIFIC GAS & ELECTRIC 2335302 SARAHILLS LIGHTING PACIFIC GAS & ELECTRIC 2515302 MCCARTYSVILLE PACIFIC GAS & ELECTRIC 2525302 PRIDES CROSSING PACIFIC GAS & ELECTRIC 2555302 TRICIA WOODS PACIFIC GAS & ELECTRIC 2715302 BEAUCHAMPS PACIFIC GAS & ELECTRIC 2725302 BELLGROVE CIRCLE PACIFIC GAS & ELECTRIC 2745302 HORSESHOE DR. PACIFIC GAS & ELECTRIC 2755302 QUITO LIGHTING REED & GRAHAM, INC 4119111 -001 STREETS SUPPLIES ROBERT A BOTHMAN, INC 431 RETENTION HELD #023 ROBERT A BOTHMAN, INC 411 RETENTION HELD #023 ROBERT A BOTHMAN, INC 4119142 -004 ROLLOVER OF PO #2011004 ROBERT A BOTHMAN, INC 4319142 -004 ROLLOVER OF PO #2011004 SAN JOSE WATER COMPANY 6246202 BUILDINGS SAN JOSE WATER COMPANY 1115301 PARKS /OPEN SPACE SAN JOSE WATER COMPANY 2495302 MANOR DRIVE 34 SALES TAX AMOUNT 0.00 15,541.18 0.00 477.83 0.00 453.60 0.00 359.70 0.00 172.50 0.00 247.00 0.00 78.57 0.00 21.35 0.00 69.68 0.00 28.09 0.00 28.09 0.00 28.08 0.00 77.92 0.00 331.78 0.00 515.99 0.00 105.65 0.00 3.29 0.00 624.93 0.00 7,244.13 0.00 1,849.42 0.00 622.50 0.00 2,746.62 0.00 239.29 0.00 251.71 0.00 19.15 0.00 34.95 0.00 9.53 0.00 51.73 0.00 541.80 0.00 9.57 0.00 1,114.20 0.00 14,734.60 0.00 218.25 0.00 - 6,919.38 0.00 - 6,653.36 0.00 66,533.57 0.00 69,193.83 0.00 122,154.66 0.00 183.11 0.00 2,801.75 0.00 72.83 SUNGARD PUBLIC SECTOR PAGE NUMBER: 3 DATE: 11/13/2012 CITY OF SARATOGA ACCTPA21 TIME: 11:47:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121113 00:00:00.000' ACCOUNTING PERIOD: 5/13 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT 11111 121580 11/13/12 87 11111 121580 11/13/12 87 11111 121580 11/13/12 87 11111 121580 11/13/12 87 11111 121580 11/13/12 87 11111 121580 11/13/12 87 11111 121580 11/13/12 87 11111 121580 11/13/12 87 TOTAL CHECK 2435302 SAN 11111 121581 11/13/12 124 11111 121582 11/13/12 500 11111 121583 11/13/12 147 11111 121584 11/13/12 787 11111 121585 11/13/12 884 11111 121585 11/13/12 884 TOTAL CHECK 0.00 652.89 11111 121586 11/13/12 500 11111 121587 11/13/12 336 11111 121588 11/13/12 343 11111 121589 11/13/12 1032 11111 121590 11/13/12 901 11111 121591 11/13/12 441 11111 121591 11/13/12 441 11111 121591 11/13/12 441 11111 121591 11/13/12 441 11111 121591 11/13/12 441 11111 121591 11/13/12 441 11111 121591 11/13/12 441 TOTAL CHECK 11111 121592 11/13/12 439 11111 121593 11/13/12 439 11111 121594 11/13/12 751 11111 121595 11/13/12 446 11111 121595 11/13/12 446 TOTAL CHECK 11111 121596 11/13/12 447 VENDOR - - -- --- - - - - -- BUDGET UNIT SAN JOSE WATER COMPANY 2715302 SAN JOSE WATER COMPANY 2775302 SAN JOSE WATER COMPANY 2535302 SAN JOSE WATER COMPANY 2445302 SAN JOSE WATER COMPANY 2555302 SAN JOSE WATER COMPANY 2745302 SAN JOSE WATER COMPANY 2435302 SAN JOSE WATER COMPANY 1115301 SCHWAAB INC 1112201 SERGIO FACUNDO 111 SHIMODA MICHIKO 1116101 SPRAY TECHNOLOGY 4119142 -011 STAPLES CONTRACT & COMME 1112101 STAPLES CONTRACT & COMME 1112101 TERRI LIN 1116101 TLC ADMINISTRATORS 1113301 TMT ENTERPRISES INC 4119133 -001 UNITED STATES TREASURY 111 WAXIE SANITARY SUPPLY 6246202 WHITLINGER, JOHN 1116101 WHITLINGER, JOHN 1116101 WHITLINGER, JOHN 1116101 WHITLINGER, JOHN 1116101 WHITLINGER, JOHN 1116101 WHITLINGER, JOHN 1116101 WHITLINGER, JOHN 1116101 XEROX CORPORATION 6213102 XEROX CORPORATION 6213102 ZAMAR SOUND PRO AUDIO 1118101 ZAP MANUFACTURING, INC 4119111 -002 ZAP MANUFACTURING, INC 4119111 -002 DESCRIPTION BEAUCHAMPS VILLAGE COMMERCIAL SARA LEGENDS(MINA WY) CUNNINGHAM /GLAS77.5% TRICIA WOODS 22.5% HORSESHOE DR 70% CAMELIAN GLEN 30% MEDIANS /PARKWAYS OFFICE SUPPLIES REFUND FACILITY INSTRUCTOR - IKEBANA STREETS SUPPLIES OFFICE SUPPLIES OFFICE SUPPLIES REFUND CLS CANCELLED 125 ADMIN FEES 11/12 SANDY LOAM DED:2012 IRS LEVY JANITORIAL SUPPLIES INSTRUCTOR- TENNIS INSTRUCTOR- TENNIS INSTRUCTOR- TENNIS INSTRUCTOR- TENNIS INSTRUCTOR- TENNIS INSTRUCTOR- TENNIS INSTRUCTOR- TENNIS SIN: RYU272971 MAINTEN SIN: RYU427159 MAINTEN OFFICE FURNITURE STREETS SUPPLIES STREETS SUPPLIES ZEE MEDICAL SERVICE 1116101 SUPPLIES 35 SALES TAX AMOUNT 0.00 333.78 0.00 1,432.51 0.00 429.11 0.00 46.83 0.00 13.59 0.00 245.71 0.00 105.31 0.00 1,626.75 0.00 7,291.28 0.00 70.92 0.00 300.00 0.00 185.00 0.00 300.00 0.00 63.32 0.00 7.58 0.00 70.90 0.00 149.00 0.00 175.00 0.00 3,584.50 0.00 405.00 0.00 2,024.86 0.00 285.20 0.00 228.16 0.00 342.24 0.00 456.32 0.00 342.24 0.00 285.20 0.00 285.20 0.00 2,224.56 0.00 17.98 0.00 17.98 0.00 652.89 0.00 1,192.13 0.00 4,451.59 0.00 5,643.72 0.00 33.33 SUNGARD PUBLIC SECTOR DATE: 11/13/2012 CITY OF SARATOGA TIME: 11:47:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121113 00:00:00.000' ACCOUNTING PERIOD: 5/13 PAGE NUMBER: 4 ACCTPA21 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT TOTAL CASH ACCOUNT 0.00 239,094.39 TOTAL FUND 0.00 239,094.39 TOTAL REPORT 0.00 239,094.39 36 SUNGARD PUBLIC SECTOR DATE: 11/20/2012 CITY OF SARATOGA TIME: 10:54:18 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121120 00:00:00.000' ACCOUNTING PERIOD: 5/13 PAGE NUMBER: 1 ACCTPA21 - - - -- VENDOR - - -- --- - - - - -- FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121597 11/20/12 234 11111 121597 11/20/12 234 11111 121597 11/20/12 234 11111 121597 11/20/12 234 11111 121597 11/20/12 234 11111 121597 11/20/12 234 11111 121597 11/20/12 234 11111 121597 11/20/12 234 11111 121597 11/20/12 234 TOTAL CHECK • T & T 1115301 11111 121598 11/20/12 546 11111 121599 11/20/12 35 11111 121600 11/20/12 500 11111 121601 11/20/12 977 11111 121602 11/20/12 500 11111 121603 11/20/12 197 11111 121604 11/20/12 287 11111 121605 11/20/12 327 11111 121605 11/20/12 327 11111 121605 11/20/12 327 TOTAL CHECK 170.00 BELANGER, CHRISTINE 11111 121606 11/20/12 500 11111 121607 11/20/12 500 11111 121608 11/20/12 179 11111 121609 11/20/12 188 11111 121610 11/20/12 229 11111 121611 11/20/12 500 11111 121612 11/20/12 211 11111 121613 11/20/12 341 11111 121614 11/20/12 426 11111 121614 11/20/12 426 TOTAL CHECK 0.00 2,849.16 11111 121615 11/20/12 455 PAGE NUMBER: 1 ACCTPA21 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT • T & T 1115301 CONGRESS SPRING PARK 0.00 31.79 • T & T 1117102 EMERGENCY LN REC 0.00 14.78 • T & T 1117102 EMERGENCY LN- CM OFC 0.00 55.36 • T & T 6246202 BOOK GO ROUND ALARM 0.00 31.10 • T & T 1117102 EMERGENCY LN CM OFC 0.00 16.03 • T & T 6246202 POSTAGE MACH COPY RM 0.00 14.78 • T & T 1117102 AM RADIO 1610 SARA LN 0.00 16.03 • T & T 1115301 GATEWAY IRR CONTROL 0.00 15.71 • T & T 1115301 PHONE LINES & PARKS 0.00 16.55 0.00 212.13 ABAG POWER PURCHASING PO 6246202 GAS SERVICES 0.00 749.48 ACCENT GRAPHICS 1116201 NAME PLATE 0.00 51.27 ANNE CLARK 111 REFUND 06 -226 0.00 1,600.00 AQUA SYSTEMS INC. 6246202 JANITORIAL SUPPLIES 0.00 153.46 ARJUN & KIRAN MALHOTRA 111 ARB09- 0021 /GE009 -0010 0.00 1,377.37 ARROWHEAD MOUNTAIN SPRIN 6246202 WATER SERVICE 0.00 104.01 BAY AREA AIR QUALITY MAN 6235202 PERMIT RENEWAL 0.00 170.00 BELANGER, CHRISTINE 1116101 INSTRUCTOR -DANCE 0.00 126.00 BELANGER, CHRISTINE 1116101 INSTRUCTOR -DANCE 0.00 336.00 BELANGER, CHRISTINE 1116101 INSTRUCTOR -DANCE 0.00 126.00 0.00 588.00 BETTY SINSLEY 111 REFUND SUB - 120003 0.00 3,443.80 BHARATHI BUGATA 111 REFUND FACILITY 0.00 300.00 CIM AIR, INC 6246202 HVAC PM SERVICES 0.00 1,625.15 CITY OF CAMPBELL 1115103 JPA DUES 7/1- 9/30/12 0.00 8,488.50 COAST OIL COMPANY LLC 6235202 UNLEADED FUEL 0.00 2,849.16 CROWN CASTLE 111 REFUND 06 -090 0.00 262.00 DEEP CLIFF GOLF COURSE 1116101 INSTRUCTOR -GOLF 0.00 1,272.96 DU -ALL SAFETY, LLC 1115201 HAZ MAT TRAINING 0.00 600.00 FLINT TRADING, INC 4119111 -002 STREETS SUPPLIES 0.00 930.57 FLINT TRADING, INC 4119111 -002 TRAFFIC SAFETY SUPPLIE 0.00 7,642.97 0.00 8,573.54 GARDENLAND POWER EQUIPME 1115301 PARKS SUPPLIES 0.00 21.71 37 SUNGARD PUBLIC SECTOR PAGE NUMBER: 2 DATE: 11/20/2012 CITY OF SARATOGA ACCTPA21 TIME: 10:54:18 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121120 00:00:00.000' ACCOUNTING PERIOD: 5/13 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT ----- DESCRIPTION - - -- HYDROTEC IRRIGATION EQUI 6246202 MAIN LN RPR N CAMPUS INDEPENDENT STATIONERS 1116101 OFFICE SUPPLIES INTERSTATE TRAFFIC CONTR 4119142 -011 CUSTOM SIGNS INTERSTATE TRAFFIC CONTR 4119111 -002 STREETS SUPPLIES JIM YANG 111 REFUND 04 -327 JUAN CARDONA 111 REFUND FACILITY KATE BEAR 1114101 ASCA CONFERENCE MEGAPATH 6223201 ISP SRVC 10/16 -11/15 MEGAPATH 6223201 ISP SRVC 11/16 -12/15 MUNISERVICES LLC 1113101 NORTH BAY BLDG MAINTENAN 6246202 NORTH BAY BLDG MAINTENAN 6246202 OFF OF SHERIFF - FISCAL SV 1117101 OFFICE DEPOT INC. 1115201 OFFICE DEPOT INC. 1114101 ONTRAC ONTRAC 1115101 1118201 ORCHARD SUPPLY HARDWARE- 1115301 ORCHARD SUPPLY HARDWARE- 1115201 OSCAR'S EXPERT TREE SERV 1115201 PACIFIC GAS & ELECTRIC 1115301 PEELLE TECHNOLOGIES, INC 4149412 -003 PEELLE TECHNOLOGIES, INC 4149412 -001 PREMIER DOOR SERVICES, I 4119142 -011 RATRA, RICK 6235202 RBF CONSULTING 4349451 -001 01 ANNUAL SALES TAX AUDIT JANITORIAL SERVICES JANITORIAL SERVICES LAW ENFORCEMENT 11/12 OFFICE SUPPLIES OFFICE SUPPLIES DELIVERY CHARGES DELIVERY CHARGES PARKS SUPPLIES STREETS SUPPLIES BANK MILL TREE PUB LIB /LNDSCP LIGHTS LASERFICHE SVCS - CITY LASERFICHE SVCS - PUBL CUSTOM SIGNS PROPANE CONTRACTOR UPDATING SA SALES TAX FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121616 11/20/12 14 11111 121617 11/20/12 956 11111 121618 11/20/12 63 11111 121618 11/20/12 63 TOTAL CHECK 500.00 0.00 11111 121619 11/20/12 500 11111 121620 11/20/12 500 11111 121621 11/20/12 500 11111 121622 11/20/12 996 11111 121622 11/20/12 996 TOTAL CHECK 205.39 0.00 11111 121623 11/20/12 79 11111 121624 11/20/12 135 11111 121624 11/20/12 135 TOTAL CHECK 219.58 11111 121625 11/20/12 1 11111 121626 11/20/12 145 11111 121626 11/20/12 145 TOTAL CHECK 11111 121627 11/20/12 60 11111 121627 11/20/12 60 TOTAL CHECK 11111 121628 11/20/12 168 11111 121628 11/20/12 168 TOTAL CHECK 11111 121629 11/20/12 1087 11111 121630 11/20/12 173 11111 121631 11/20/12 890 11111 121631 11/20/12 890 TOTAL CHECK 11111 121632 11/20/12 1108 11111 121633 11/20/12 388 11111 121634 11/20/12 561 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT ----- DESCRIPTION - - -- HYDROTEC IRRIGATION EQUI 6246202 MAIN LN RPR N CAMPUS INDEPENDENT STATIONERS 1116101 OFFICE SUPPLIES INTERSTATE TRAFFIC CONTR 4119142 -011 CUSTOM SIGNS INTERSTATE TRAFFIC CONTR 4119111 -002 STREETS SUPPLIES JIM YANG 111 REFUND 04 -327 JUAN CARDONA 111 REFUND FACILITY KATE BEAR 1114101 ASCA CONFERENCE MEGAPATH 6223201 ISP SRVC 10/16 -11/15 MEGAPATH 6223201 ISP SRVC 11/16 -12/15 MUNISERVICES LLC 1113101 NORTH BAY BLDG MAINTENAN 6246202 NORTH BAY BLDG MAINTENAN 6246202 OFF OF SHERIFF - FISCAL SV 1117101 OFFICE DEPOT INC. 1115201 OFFICE DEPOT INC. 1114101 ONTRAC ONTRAC 1115101 1118201 ORCHARD SUPPLY HARDWARE- 1115301 ORCHARD SUPPLY HARDWARE- 1115201 OSCAR'S EXPERT TREE SERV 1115201 PACIFIC GAS & ELECTRIC 1115301 PEELLE TECHNOLOGIES, INC 4149412 -003 PEELLE TECHNOLOGIES, INC 4149412 -001 PREMIER DOOR SERVICES, I 4119142 -011 RATRA, RICK 6235202 RBF CONSULTING 4349451 -001 01 ANNUAL SALES TAX AUDIT JANITORIAL SERVICES JANITORIAL SERVICES LAW ENFORCEMENT 11/12 OFFICE SUPPLIES OFFICE SUPPLIES DELIVERY CHARGES DELIVERY CHARGES PARKS SUPPLIES STREETS SUPPLIES BANK MILL TREE PUB LIB /LNDSCP LIGHTS LASERFICHE SVCS - CITY LASERFICHE SVCS - PUBL CUSTOM SIGNS PROPANE CONTRACTOR UPDATING SA SALES TAX AMOUNT 0.00 523.97 0.00 259.22 0.00 466.01 0.00 107.29 0.00 573.30 0.00 145.70 0.00 300.00 0.00 1,175.00 0.00 739.96 0.00 739.96 0.00 1,479.92 0.00 500.00 0.00 95.00 0.00 247.00 0.00 342.00 0.00 346,137.83 0.00 55.03 0.00 76.73 0.00 131.76 0.00 18.72 0.00 26.75 0.00 45.47 0.00 370.01 0.00 205.39 0.00 575.40 0.00 950.00 0.00 19.71 0.00 245.86 0.00 712.92 0.00 958.78 0.00 1,717.25 0.00 219.58 0.00 7,257.64 SUNGARD PUBLIC SECTOR PAGE NUMBER: 3 DATE: 11/20/2012 CITY OF SARATOGA ACCTPA21 TIME: 10:54:18 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121120 00:00:00.000' ACCOUNTING PERIOD: 5/13 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121635 11/20/12 393 11111 121636 11/20/12 410 11111 121637 11/20/12 500 11111 121638 11/20/12 87 11111 121638 11/20/12 87 11111 121638 11/20/12 87 TOTAL CHECK 0.00 1,755.00 11111 121639 11/20/12 500 11111 121640 11/20/12 729 11111 121640 11/20/12 729 11111 121640 11/20/12 729 TOTAL CHECK 0.00 153.23 11111 121641 11/20/12 136 11111 121641 11/20/12 136 11111 121641 11/20/12 136 TOTAL CHECK 0.00 782.79 11111 121642 11/20/12 1079 11111 121642 11/20/12 1079 TOTAL CHECK 11111 121643 11/20/12 256 11111 121644 11/20/12 266 11111 121644 11/20/12 266 TOTAL CHECK 11111 121645 11/20/12 557 11111 121645 11/20/12 557 TOTAL CHECK 11111 121646 11/20/12 395 11111 121646 11/20/12 395 11111 121646 11/20/12 395 11111 121646 11/20/12 395 11111 121646 11/20/12 395 11111 121646 11/20/12 395 11111 121646 11/20/12 395 11111 121646 11/20/12 395 11111 121646 11/20/12 395 11111 121646 11/20/12 395 TOTAL CHECK 11111 121647 11/20/12 500 11111 121648 11/20/12 425 - - - -- VENDOR - - -- - - - - -- REED & GRAHAM, INC RICH VOSS TRUCKING INC ROBERT BELLICITTI SAN JOSE WATER COMPANY SAN JOSE WATER COMPANY SAN JOSE WATER COMPANY BUDGET UNIT 4119111 -001 4119111 -001 111 1115301 2475302 2545302 SARATOGA PONY CLUB 111 SARATOGA SCHOOL OF DANCE 1116101 SARATOGA SCHOOL OF DANCE 1116101 SARATOGA SCHOOL OF DANCE 1116101 SCOTTY'S AUTOMOTIVE 6235202 SCOTTY'S AUTOMOTIVE 6235202 SCOTTY'S AUTOMOTIVE 6235202 SIEMENS INDUSTRY, INC. 1115201 SIEMENS INDUSTRY, INC. 4119111 -001 STEVENS CREEK QUARRY INC 4119111 -001 SUNGARD PUBLIC SECTOR IN 6223201 SUNGARD PUBLIC SECTOR IN 6223201 VAVRINEK, TRINE, DAY & C 1113101 VAVRINEK, TRINE, DAY & C 1113101 VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS VERIZON WIRELESS WESCO GRAPHICS, INC ----- DESCRIPTION - - - -- STREETS SUPPLIES SAND DELIVERY REFUND 05 -065 PARK /KERWIN RANCH 10% KERWIN RANCH 90% SUNLAND PARK REFUND FACILITY INSTRUCTOR -DANCE INSTRUCTOR -DANCE INSTRUCTOR -DANCE MAINTENANCE VEH #103 MAINTENANCE VEH #01 MAINTENANCE VEH #110 TRAFFIC SIGNALS AND LI TRAFFIC SIGNALS AND LI STREETS SUPPLIES SUNGARD DEC MAINT HTE ASP SUPPORT DEC ANNUAL FINANCIAL AUDIT FY 2011/12 FINANCIAL A 1114201 BUILDING & INSPECTION 1114101 DEVELOPMENT SERVICES 1115201 STREETS 1115301 PARKS 1115101 GENERAL ENGINEERING 6246202 BUILDING MAINTENANCE 1112101 CITY MANAGER 1112201 CITY CLERK 1113101 FINANCE 6223201 IT SERVICES 111 REFUND 03 -278 1118101 SARATOGA NEWSLETTER 39 SALES TAX AMOUNT 0.00 275.34 0.00 173.00 0.00 429.30 0.00 87.17 0.00 784.50 0.00 341.69 0.00 1,213.36 0.00 300.00 0.00 103.50 0.00 103.50 0.00 103.50 0.00 310.50 0.00 55.00 0.00 55.00 0.00 185.00 0.00 295.00 0.00 1,425.00 0.00 330.00 0.00 1,755.00 0.00 159.88 0.00 5,390.00 0.00 394.00 0.00 5,784.00 0.00 8,975.00 0.00 6,025.00 0.00 15,000.00 0.00 36.84 0.00 36.84 0.00 153.23 0.00 258.03 0.00 36.67 0.00 146.68 0.00 0.17 0.00 3.02 0.00 51.71 0.00 59.60 0.00 782.79 0.00 1,087.48 0.00 1,637.36 SUNGARD PUBLIC SECTOR PAGE NUMBER: DATE: 11/20/2012 CITY OF SARATOGA ACCTPA21 TIME: 10:54:18 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121120 00:00:00.000' ACCOUNTING PERIOD: 5/13 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 121649 11/20/12 500 WILLIAM SCHREEDER 111 REFUND 05 -152 0.00 50.57 11111 121650 11/20/12 198 WITTWER & PARKIN, LLP 111 PROF SVCS SUB 12 -0003 0.00 828.30 11111 121651 11/20/12 696 ZAG TECHNICAL SERVICES, 6223201 IT SUPPORT SERVICES 0.00 273.75 11111 121652 11/20/12 446 ZAP MANUFACTURING, INC 4119111 -002 STREETS SUPPLIES 0.00 1,552.32 11111 121652 11/20/12 446 ZAP MANUFACTURING, INC 4119111 -002 STREETS SUPPLIES 0.00 2,178.50 TOTAL CHECK 0.00 3,730.82 TOTAL CASH ACCOUNT 0.00 429,841.52 TOTAL FUND 0.00 429,841.52 TOTAL REPORT 0.00 429,841.52 4 SUNGARD PUBLIC SECTOR PAGE NUMBER: 1 DATE: 11/27/2012 CITY OF SARATOGA ACCTPA21 TIME: 12:11:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121127 00:00:00.000' ACCOUNTING PERIOD: 5/13 VENDOR - - -- --- - - - - -- BUDGET UNIT • T FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121653 11/27/12 234 11111 121653 11/27/12 234 11111 121653 11/27/12 234 11111 121653 11/27/12 234 11111 121653 11/27/12 234 11111 121653 11/27/12 234 TOTAL CHECK 90.00 0.00 11111 121654 11/27/12 521 11111 121655 11/27/12 970 11111 121656 11/27/12 825 11111 121656 11/27/12 825 TOTAL CHECK 56.14 0.00 11111 121657 11/27/12 163 11111 121658 11/27/12 617 11111 121658 11/27/12 617 TOTAL CHECK 11111 121659 11/27/12 494 11111 121660 11/27/12 342 11111 121661 11/27/12 528 11111 121662 11/27/12 1 11111 121663 11/27/12 562 11111 121664 11/27/12 454 11111 121665 11/27/12 458 11111 121666 11/27/12 463 11111 121667 11/27/12 14 11111 121668 11/27/12 63 11111 121668 11/27/12 63 TOTAL CHECK 11111 121669 11/27/12 500 11111 121670 11/27/12 123 11111 121670 11/27/12 123 TOTAL CHECK 11111 121671 11/27/12 283 VENDOR - - -- --- - - - - -- BUDGET UNIT • T & T 6246202 • T & T 6246202 • T & T 1115301 • T & T 1115301 • T & T 1115301 • T & T 2775302 ALLIED LOCK & SAFE INC 6246202 ATKINSON,ANDELSON,LOYA,R 1113301 CANDACE TROY 1116101 CANDACE TROY 1116101 CHOW, JACKSON 1116101 CITIES ASSOC. OF SANTA C 1111101 CITIES ASSOC. OF SANTA C 1112101 COMCAST 6223201 DATA TICKET INC 1117101 DAVID L. GATES & ASSOCIA 4119142 -010 DEPT OF ENVIROMENTAL HEA 6246202 DEPT OF ENVIRONMENTAL HE 1115103 GACHINA LANDSCAPE MANAGE 4119111 -001 GEORGE BIANCHI CONSTRUCT 4119111 -001 GRAINGER 6246202 HYDROTEC IRRIGATION EQUI 4119111 -001 INTERSTATE TRAFFIC CONTR 4119111 -001 INTERSTATE TRAFFIC CONTR 4119142 -011 DESCRIPTION SUPERTRUNK PROSPECT RD ALARM EL QUITO IRR MODEM LN TITUS /PROSPECT /MEDIAN HISTORICAL PARK BIG BASIN WAY FACILITIES SUPPLIES LEGAL SRVCS THRU OCT INSTRUCTOR- PAINTING INSTRUCTOR- PAINTING INSTRUCTOR- SPEECH CITIES ASSOC EVENT CITIES ASSOC EVENT MTHLY SVC 11/20 -12/19 CITATION FEES 10/12 VILLAGE PED ENHANCE GREEN RECYCLING HAZ WASTE FEES SHOULDER WORK DIAMOND OAKS RET WALL FACILITIES SUPPLIES CONDUIT FOR ADMIN BLD STREETS SUPPLIES STREET LIGHT NUMBERS JOSE LOPEZ 111 REFUND FACILITY KELEX SECURITY 6246202 ALARM REPAIR KELEX SECURITY 6246202 ALARM REPAIR MARTIN, JIM 111 REIMB MED SEPT -NOV 41 SALES TAX AMOUNT 0.00 411.38 0.00 34.37 0.00 16.06 0.00 16.18 0.00 16.18 0.00 16.18 0.00 510.35 0.00 140.00 0.00 4,812.50 0.00 73.50 0.00 390.00 0.00 463.50 0.00 187.50 0.00 60.00 0.00 30.00 0.00 90.00 0.00 77.48 0.00 100.00 0.00 4,850.45 0.00 225.30 0.00 27,718.05 0.00 390.00 0.00 8,505.00 0.00 77.86 0.00 1,903.55 0.00 56.14 0.00 216.75 0.00 272.89 0.00 300.00 0.00 250.00 0.00 125.00 0.00 375.00 0.00 600.00 SUNGARD PUBLIC SECTOR PAGE NUMBER: 2 DATE: 11/27/2012 CITY OF SARATOGA ACCTPA21 TIME: 12:11:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20121127 00:00:00.000' ACCOUNTING PERIOD: 5/13 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT NI GOVERNMENT SERVICES, 1117102 NORTH BAY BLDG MAINTENAN 6246202 OFFICE DEPOT INC. 1118101 O'REILLY AUTO PARTS 6235202 O'REILLY AUTO PARTS 6235202 OSCAR'S EXPERT TREE SERV 1115201 PACIFIC GAS & ELECTRIC 6246202 PACIFIC GAS & ELECTRIC 2315302 PACIFIC GAS & ELECTRIC 1115201 PALACE ART & OFFICE SUPP 1116101 PETROTEK 6235202 PETROTEK 6235202 PETROTEK 6235202 REED & GRAHAM, INC 4119111 -001 SARATOGA CARES FOUNDATIO 111 SCCCMA 1112101 SCOTTY'S AUTOMOTIVE 6235202 SCOTTY'S AUTOMOTIVE 6235202 ----- DESCRIPTION - - - -- AIR TIME 10/12 JANITORIAL SERVICES OFFICE SUPPLIES EQUIPMENT MAINTENANCE EQUIPMENT MAINTENANCE REMOVE PEPPER TREE BUILDINGS VILLAGE LIGHTING MONTE VISTA DRIVE OFFICE SUPPLIES FUEL TESTING 10/12 EQUIPMENT MAINTENANCE FUEL TESTING 11/12 STREETS SUPPLIES REFUND FACILITY SCCCMA EVENT MAINTENANCE VEH #105 MAINTENANCE VEH #111 US POSTMASTERS 1116101 WINTER- SPRING GUIDE WAXIE SANITARY SUPPLY 6246202 JANITORIAL SUPPLIES WAXIE SANITARY SUPPLY 6246202 JANITORIAL SUPPLIES WEST VALLEY TRAILWAYS 1116101 Lc EXCURSION 12/06/12 SALES TAX FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 121672 11/27/12 1062 11111 121673 11/27/12 135 11111 121674 11/27/12 145 11111 121675 11/27/12 918 11111 121675 11/27/12 918 TOTAL CHECK 340.79 0.00 11111 121676 11/27/12 1087 11111 121677 11/27/12 173 11111 121677 11/27/12 173 11111 121677 11/27/12 173 TOTAL CHECK 227.95 0.00 11111 121678 11/27/12 1092 11111 121679 11/27/12 278 11111 121679 11/27/12 278 11111 121679 11/27/12 278 TOTAL CHECK 11111 121680 11/27/12 393 11111 121681 11/27/12 500 11111 121682 11/27/12 500 11111 121683 11/27/12 136 11111 121683 11/27/12 136 TOTAL CHECK 11111 121684 11/27/12 396 11111 121685 11/27/12 901 11111 121685 11/27/12 901 TOTAL CHECK 11111 121686 11/27/12 902 TOTAL CASH ACCOUNT TOTAL FUND TOTAL REPORT - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT NI GOVERNMENT SERVICES, 1117102 NORTH BAY BLDG MAINTENAN 6246202 OFFICE DEPOT INC. 1118101 O'REILLY AUTO PARTS 6235202 O'REILLY AUTO PARTS 6235202 OSCAR'S EXPERT TREE SERV 1115201 PACIFIC GAS & ELECTRIC 6246202 PACIFIC GAS & ELECTRIC 2315302 PACIFIC GAS & ELECTRIC 1115201 PALACE ART & OFFICE SUPP 1116101 PETROTEK 6235202 PETROTEK 6235202 PETROTEK 6235202 REED & GRAHAM, INC 4119111 -001 SARATOGA CARES FOUNDATIO 111 SCCCMA 1112101 SCOTTY'S AUTOMOTIVE 6235202 SCOTTY'S AUTOMOTIVE 6235202 ----- DESCRIPTION - - - -- AIR TIME 10/12 JANITORIAL SERVICES OFFICE SUPPLIES EQUIPMENT MAINTENANCE EQUIPMENT MAINTENANCE REMOVE PEPPER TREE BUILDINGS VILLAGE LIGHTING MONTE VISTA DRIVE OFFICE SUPPLIES FUEL TESTING 10/12 EQUIPMENT MAINTENANCE FUEL TESTING 11/12 STREETS SUPPLIES REFUND FACILITY SCCCMA EVENT MAINTENANCE VEH #105 MAINTENANCE VEH #111 US POSTMASTERS 1116101 WINTER- SPRING GUIDE WAXIE SANITARY SUPPLY 6246202 JANITORIAL SUPPLIES WAXIE SANITARY SUPPLY 6246202 JANITORIAL SUPPLIES WEST VALLEY TRAILWAYS 1116101 Lc EXCURSION 12/06/12 SALES TAX AMOUNT 0.00 75.52 0.00 95.00 0.00 83.38 0.00 75.65 0.00 37.83 0.00 113.48 0.00 400.00 0.00 187.78 0.00 24.14 0.00 9.86 0.00 221.78 0.00 96.30 0.00 200.00 0.00 340.79 0.00 200.00 0.00 740.79 0.00 83.65 0.00 300.00 0.00 160.00 0.00 350.43 0.00 55.00 0.00 405.43 0.00 3,000.00 0.00 227.95 0.00 154.36 0.00 382.31 0.00 932.50 0.00 58,689.57 0.00 58,689.57 0.00 58,689.57 MEETING DATE: DEPARTMENT: PREPARED BY: SARATOGA CITY COUNCIL December 5, 2012 Finance & Administrative Services Ann Xu, Accountant AGENDA ITEM: CITY MANAGER: Dave Anderson DIRECTOR: Mary Furey SUBJECT: Treasurer's Report for the Month Ended October 31, 2012 RECOMMENDED ACTION Review and accept the Treasurer's Report for the month ended October 31, 2012. REPORT SUMMARY California government code section 41004 requires that the City Treasurer submit to the City Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The Municipal Code of the City of Saratoga, Article 2 -20, Section 2- 20.035 designates the City Manager as the City Treasurer. Section 41004. Regularly, at least once each month, the City Treasurer shall submit to the City Clerk a written report and accounting of all receipts, disbursements, and fund balances. He shall file a copy with the legislative body. The following attachments provide various financial transaction data for the City of Saratoga's Funds collectively as well as specifically for the City's General (Operating) Fund, including an attachment from the State Treasurer's Office of Quarterly LAIF rates from the 1St Quarter of 1977 to present. FISCAL IMPACT Cash and Investments Balance by Fund As of October 31, 2012, the City had $378,579 in cash deposit at Comerica bank, and $12,068,267 on deposit with LAIF. Council Policy on operating reserve funds, adopted on April 20, 1994, states that: for cash flow purposes, to avoid occurrence of dry period financing, pooled cash from all funds should not be allowed to fall below $2,000,000. The total pooled cash balance as of October 31, 2012 is $12,446,846 and exceeds the minimum limit required. Cash Summary Unrestricted Cash Comerica Bank $ 378,579 Deposit with LAIF $ 12,068,267 Total Unrestricted Cash $ 12,446,846 43 The following Fund Balance schedule represents actual funding available for all funds at the end of the monthly period. This amount differs from the above Cash Summary schedule as assets and liabilities are components of the fund balance. As illustrated in the summary below, Total Unrestricted Cash is adjusted by the addition of Total Assets less the amount of Total Liabilities to arrive at the Ending Fund Balance — which represents the actual amount of funds available. Adjusting Cash to Ending Fund Balance Total Unrestricted Cash $ 12,446,846 Plus: Assets 365,201 Less: Liabilities (1,269,767) Ending Fund Balance $ 11,542,280 Fund Balances Designations In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This standard left unchanged the total amount reported as fund balance, but substantially altered the categories and terminology used to describe its components. The new categories and terminology focus, not on financial resources available for appropriation, but on the extent to which the government is bound to honor constraints on the specific purpose for which the amounts in the fund can be spent. The components of fund balance are now categorized as follows: "non- spendable fund balance ", resources that are inherently non - spendable from the vantage point of the current period; "restricted fund balance ", resources that are subject to external enforceable legal restrictions; "committed fund balance ", resources whose use is constrained by limitations that the government imposes upon itself at its highest level of decision making and remain binding unless removed in the same manner; "assigned fund balance ", resources that reflects a government's intended use of resources, such intent would have to be established at either the highest level of decision making, by a body, or an official designated for that purpose; and "unassigned fund balance ", net resources in excess of what can properly be classified in one of the other four categories. Currently, the City's fund balance reserves fall into one of the four spendable categories; restricted, committed, assigned, or unassigned fund balance. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION The City would not be in compliance with Government Code Section 41004. ALTERNATIVE ACTION N/A FOLLOW UP ACTION N/A ADVERTISING, NOTICING AND PUBLIC CONTACT Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. .. ATTACHMENTS A — Change in Total Fund Balances by Fund under GASB 54 B — Change in Total Fund Balances by CIP Project C — Change in Cash Balance by Month D — Local Agency Investment Fund (LAIF) Quarterly Apportionment Rates 45 ATTACHMENT A CHANGES IN TOTAL FUND BALANCE UNDER GASB 54 i Fund Increase/ Balance (Decrease) Current Current Fund Balance FtndDescri 'on 7/1/12 Jul - Se Revenue Expenditure Transfers 10/31/12 General Fund Restricted Fund Balances: Environmental Services 513,182 - - - - 513,182 Comaiitted Fund Balances: Hillside Stability 600,000 - - - - 600,000 Assigned Fund Balances: Capital Projects 1,923,658 - - - (635,000) 1,288,658 Carryforwards 247,201 - - - - 247,201 Unassigned Fund Balances: Operations 2,914,426 - - - - 2,914,426 Economic Uncertainty 1,500,000 - - - - 1,500,000 Development Services 667,233 - - - - 667,233 Uncollected Deposits 44,791 - - - - 44,791 OtherUnassi ned 518,631 (1,740,627) 946,882 1,112,291 6,000 (1,381,405) General FtndTotal 8,929,122 (1,740,627) 946,882 1,112,291 (629,000) 6,394,086 Special Revenue Landscape /Lighting Districts 562,504 (86,002) 12,194 20,328 - 468,368 Capital Project Street Projects 1,701,512 (87,727) 66,652 22,828 150,000 1,807,609 Park and Trail Projects 621,118 (12,033) - 21,196 300,000 887,890 Facility Improvement Projects 493,709 (171,157) 18,268 97,488 200,000 443,332 Administrative Projects 129,400 (7,555) - 6,022 85,000 200,822 Tree Fund 34,345 - 1,120 - - 35,466 CIP Grant Street Repair Projects 466,818 (280,200) - 93,902 - 92,716 CIP Grant Park & Trail Projects - (386,133) - 4,558 - (390,691) CIP Grant Facility - (6,302) 6,302 - - - CIP Grant Administrative Projects - (28,408) - 11,832 - (40,240) Gas Tax Fund 97,305 143,383 100,133 - (106,000) 234,821 Debt Service Library Bond 862,414 (661,428) 3,582 - - 204,568 Internal Service Fund Liability /Risk Management 134,757 (126,086) 969 5,099 - 4,540 Workers Compensation 231,966 13,053 - 1,989 - 243,030 Office Support Services Fund 11,220 5,543 854 3,968 - 13,650 Information Technology Services 256,701 792 67 26,239 - 231,321 Equipment Maintenance 23,031 1,196 - 13,193 - 11,033 Building Maintenance 200,926 13,768 135 63,313 - 151,515 Equipment Replacement 437,088 10,841 - 67,165 - 380,764 Technology Replacement 156,760 10,922 - - - 167,682 Total City 15,350,696 (3,394,160) 1,157,157 1,571,412 - 11,542,280 i ATTACHMENT B FUND BALANCES BY CIP PROJECT 47 Fund Increase/ Fund Balance (Decrease) Current Current Balance CIP Funds /Projects 7/1/12 Jul - Se Revenue Expenditure Transfers 10/31/12 Street Projects Annual Street Resurfacing 295,612 16,072 66,652 7,944 - 370,392 Street Restriping & Signage 123,434 (59,402) - 5,460 - 58,572 Roadway Safety & Traffic Cahnmg 149,755 (17,255) - - 50,000 182,500 Solar Power Radar Feedback Signs 12,912 - - - - 12,912 Highway 9 Safety Project - Phase R (Ped Paths) 76,528 15,413 91,942 Highway 9 Safety Project - Phase III (Bicycles) 24,562 (49) 24,513 Highway 9 Safety Project - Phase IV 90,000 - 90,000 Fmitvale Ave Medians 90,000 (11000) - 3,585 - 85,416 Village LID Streetlights 5,482 - - - - 5,482 Annual Sidewalks Project 3,839 - - 2,684 50,000 51,155 Annual Storm Drain Upgrades 13,149 (41,210) - - 50,000 21,939 El Quito Area Curb Replacement 37,553 - - - - 37,553 Village - Streets cape Improvements 221,120 - - - - 221,120 Village- PhaseEDesign 27,236 - - 1,958 - 25,279 Village -Phase II Construction 224,300 - - - - 224,300 Fourth Street Bridge 100,000 - - - - 100,000 Quito Road Bridge Replacement Design 107,287 (297) - 1,198 - 105,792 Underground Project 98,744 98,744 Total Street Projects 1,701,512 (87,727) 66,652 22,828 150,000 1,807,609 Parks & Trails Park/Trail Repairs 22,459 - - 8,228 - 14,230 Playground Safety Equipment 20,078 - - - - 20,078 Park Restroom Improvements 57,589 - - - - 57,589 Blaney Plaza Improvements 6,527 - - - - 6,527 Hakone Carden Matching Funds 250,000 - - - - 250,000 Hakone Carden Retaining Wall & D/W 137,379 - - - - 137,379 Hakone Carden Upper Moon House 125,000 - - - - 125,000 Ravenswood Playground Improvement 2,086 - - - - 2,086 Saratoga to Sea Quany Master Plan 12,033) 12,968 300,000 275,000 Total Parks &Trails 621,118 (12,033) 21,196 300,000 887,890 Facility Improvements Facility Projects 108,413 - 67,833 176,246 Security Locks - - - - 40,000 40,000 Electric Charging Stations 43,400 (43,307) - 3,980 - (3,887) City Hall Emergency Power Backup 43,232 (4,675) - 3,825 60,000 94,732 City Hall Cool Roof Project - - - 18,864 - (18,864) CDD /Engineering - Carpet - (5,795) - - - (5,795) HVAC Unit #3 - - - 17,467 - (17,467) Theater Improvement 35,529 - 10,226 248 - 45,508 Senior Center Furniture and Fixture - (1,135) - - - (1,135) North Campus Improvements 113,452 - - - - 113,452 BURHVACImprovements - - 8,042 40,209 32,167 - Museum Electrical Upgrade 12,468 - - 12,895 - (427) McWilliams House Improvements 4,435 - - - - 4,435 Library Budding Exterior Maintenance Projects 13,870 - - - - 13,870 Library Irnprovement s 118,910 116,245 2,665 Total Facility Improvements 493,709 (171,157) 18,268 97,488 200,000 443,332 Administrative Projects Financial System Upgrade 3,534 - - - 10,000 13,534 PW Document Imaging Project 73,607 (499) - 876 72,231 CDD Document Imaging Project 22,121 - - - - 22,121 CMO Document Imaging Project 9,510 (249) - 246 - 9,016 IT Emergency Power Backup - - - 1,500 - (1,500) Village Facade Program 20,628 (6,807) - - - 13,821 Business Development Incentive Program - - - 3,400 25,000 21,600 Risk Management Project Funding 50,000 50,000 Total AdministmtiveProjects 129,400 (7,555) - 6,022 85,000 200,822 Tree Fund Citywide Tree Planting Program 11,096 - 1,120 - - 12,216 Tree Dedication Program 21,375 - - - - 21,375 SMSCF Tree Donation Program 1,875 1,875 Total Tree Fund 34,345 - 1,120 - - 35,466 CB' Grant Street Repair Projects 466,818 (280,200) - 93,902 - 92,716 CIP Grant Park & Trail Projects - (386,133) - 4,558 - (390,691) CIP Grant Facility (6,302) 6,302 - CIP Grant Administrative Projects - (28,408) - 11,832 - (40,240) Gas Tax Fund 97,305 143,383 100,133 - (106,000) 234,821 Total CIP Funds 3,544,207 (836,132) 192,475 257,826 629,000 3,271,725 47 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 Api ATTACHMENT C CASH BALANCE BY MONTH .; ATTACHMENT D Local Agency Investment Fund Quarterly Apportionment Rates 1977 March 5.68 June 5.78 September 5.84 December 6.45 1978 6.97 7.35 7.86 8.32 1979 8.81 9.10 9.26 10.06 1980 11.11 11.54 10.01 10.47 1981 11.23 11.68 12.40 11.91 1982 11.82 11.99 11.74 10.71 1983 9.87 9.64 10.04 10.18 1984 10.32 10.88 11.53 11.41 1985 10.32 9.98 9.54 9.43 1986 9.09 8.39 7.81 7.48 1987 7.24 7.21 7.54 7.97 1988 8.01 7.87 8.20 8.45 1989 8.76 9.13 8.87 8.68 1990 8.52 8.50 8.39 8.27 1991 7.97 7.38 7.00 6.52 1992 5.87 5.45 4.97 4.67 1993 4.64 4.51 4.44 4.36 1994 4.25 4.45 4.96 5.37 1995 5.76 5.98 5.89 5.76 1996 5.62 5.52 5.57 5.58 1997 5.56 5.63 5.68 5.71 1998 5.70 5.66 5.64 5.46 1999 5.19 5.08 5.21 5.49 2000 5.80 6.18 6.47 6.52 2001 6.16 5.32 4.47 3.52 2002 2.96 2.75 2.63 2.31 2003 1.98 1.77 1.63 1.56 2004 1.47 1.44 1.67 2.00 2005 2.38 2.85 3.18 3.63 2006 4.03 4.53 4.93 5.11 2007 5.17 5.23 5.24 4.96 2008 4.18 3.11 2.77 2.54 2009 1.91 1.51 0.90 0.60 2010 0.56 0.56 0.51 0.46 2011 0.51 0.48 0.38 0.38 2012 0.38 0.361 0.35 of S ARq��G` u y SARATOGA CITY COUNCIL �L7FORr'1 MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Mary Furey DIRECTOR: Mary Furey SUBJECT: Annual Audit Reports RECOMMENDED ACTION: Review and accept the Fiscal Year 2011/12 Comprehensive Annual Financial Report (CAFR), the Fiscal Year 2011/12 Single Audit Report (Federal Grant Awards), the FY 2011/12 Transportation Development Act Report (California Grant Award), and the FY 2012/13 Appropriation Limit Report. BACKGROUND: Under a number of State and Federal laws, the City's financial statements are required to be audited annually by external auditors who are Certified Public Accountants (CPA) and independent of City functions. The primary purpose of a financial audit is to render an opinion on whether the City's financial statement reports are presented fairly in conformity to applicable generally accepted accounting standards. In compliance, the City procures and contracts with a CPA firm licensed by the State of California to perform the various required financial audits: the Annual Financial Audit; a Single Audit on federal grant awards; a California Transportation Development Act (TDA) audit; and an Appropriations Limit Audit. The City's governmental financial statement reports are required to conform to Government Finance Officers Association (GFOA) requirements. The audits of governmental financial statements are performed in accordance with Government Audit Standards and include reports on internal controls, and compliance with laws and regulations. The auditor's reports on financial audits focus on reporting the financial condition of the organization. REPORT SUMMARY: The City's external auditor's Vavrinek, Trine, Day & Co, LLP (VTD) conducted their audits in accordance with generally accepted auditing standards. These standards require that they plan and perform the audits to obtain reasonable assurance as to whether the financial statements are free of material misstatement. In conjunction with their audit, the City's financial data and schedules were compiled as a Comprehensive Annual Financial Report (CAFR) which presents the City of Saratoga's financial condition, results of operations, and current economic condition for the fiscal year ended June 30, 2012. The CAFR document is included for your review as Attachment A. The Fiscal Year 2011/12 CAFR received an unqualified opinion from the City's external auditors. An unqualified opinion indicates the financial data of the City is fairly presented according to general accounting principles. The Transportation Development Act Report also received an unqualified opinion. The Single Audit and Appropriation Limit audits only test for compliance, they do not issue an opinion for these reports. The three reports are included for you review as Attachments B, C, and D. 50 To document and communicate the audit process, the auditors compile and submit a report to inform you of their audit responsibilities, and various findings or issues they encountered during the audit, as directed by the Auditing Standards Board under Statement of Auditing Standards 114 (SAS 114). This report is included for your review as Attachment E. There were no negative findings, however the auditors did note one capital project invoice for $36,000 was not accrued. As the amount was immaterial, the item was passed on and has been accounted for in the following fiscal year. The auditors also requested staff reclassify a number of Street program capital projects expenses (totaling $1.4 million) as maintenance costs to be expensed in the current year rather than capitalized and added to the Statement of Net Assets. This change was made and is reflected in the financial statements. In accordance with auditing regulations, auditors do not issue management letters on Internal Controls unless the City's internal control structure is found to have reportable material weaknesses. A material weakness is a significant deficiency which could lead to a material misstatement of the financial statements. Our auditors reviewed the City's internal controls, and found no reportable material weaknesses. The City applies for the Government Finance Officers Association (GFOA), Certificate of Achievement for Excellence in Financial Reporting each year to ensure the City's financial reports meet high standards in governmental accounting and financial reporting. Saratoga received the GFOA award for last year's report for the eighteenth straight year. The award certificate is included in the CAFR report on page 5. Staff will inform Council of the award status for this year's report once notified. FISCAL IMPACTS: None CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: None FOLLOW UP ACTION: Notify Council of CAFR Award status. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A — FY 2011/12 CAFR Document Attachment B — FY 2011/12 Single Audit Report Attachment C — FY 2011/12 Transportation Development Act Report Attachment D — FY 2012/13 Appropriation Limit Report Attachment E —SAS 114 Report 51 C A L I F .. �. i�.�r..e 1 � 4._�' °._. � � •Y .I� f h1..w. a11_ _ I �M. .... _�s� _. i. City of Saratoga R N I A r F- -5z- 1w COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2012 52 This page is intentionally blank. 53 oj SARgTOC'9 ` /F0 Saratoga, California Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2012 City Council ChuckPage .................................................................................. ............................... Mayor JillHunter ............................................................................ ............................... Vice Mayor Howard Miller ............................................................. ............................... Council Member EmilyLo ..................................................................... ............................... Council Member Manny Cappello .......................................................... ............................... Council Member Presented under the direction of- David Anderson, City Manager Finance & Administrative Services Department 54 This page is intentionally blank. CITY OF SARATOGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 309 2012 TABLE OF CONTENTS INTRODUCTORY SECTION Letterof Transmittal .......................................................................... ............................... l GFOA Certificate of Achievement for Excellence in Financial Reporting ...........................5 Principal Officers of the City ............................................................. ............................... 6 OrganizationChart ............................................................................. ..............................7 FINANCIAL SECTION Independent Auditors' Report ............................................................... ..............................9 Management's Discussion and Analysis (Required Supplementary Information) ............. 11 Basic Financial Statements: Government -Wide Financial Statements Statement of Net Assets ............................................................. ............................... 25 Statement of Activities and Changes in Net Assets ........................ .............................26 Fund Financial Statements Governmental Funds: BalanceSheet .............................................................................. .............................27 Reconciliation of the Government Funds Balance Sheet to the Government -Wide Financial Statement of Net Assets ... ............................... 28 Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 29 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Assets ................. ............................... 30 Proprietary Funds: Statement of Net Assets ............................................................. ............................... 31 Statement of Revenues, Expenses, and Changes in Fund Net Assets ........................... 32 Statementof Cash Flows ............................................................ ............................... 33 Basic Financial Statement Notes: Notes to the Basic Financial Statements ........................................ .............................34 Required Supplementary Information BudgetaryInformation ............................................................... ............................... 57 Modified Approach for City Streets Infrastructure Capital Assets ............................... 59 CITY OF SARATOGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 309 2012 TABLE OF CONTENTS CONTINUED SUPPLEMENTARY INFORMATION: Non -Major Governmental Funds Combining Balance Sheets ........................................................ ............................... 64 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........ 65 Schedule of Revenues, Exp and Changes in Fund Balances — Budget and Actual: Capital Improvements ........................................................... ............................... 66 Lighting & Landscape Assessment Districts Special Revenue Funds ..................... 67 Library Bond Debt Service Fund ............................................. .............................68 Internal Service Funds Combining Statement of Net Assets ............................................ ............................... 70 Combining Statement of Revenues, Expenses, and Change in Fund Balance ............... 72 Combining Statement of Cash Flows .......................................... ............................... 74 Capital Assets Used in the Operation of Governmental Funds Comparative Schedule by Source ................................................ ............................... 79 Schedule by Function and Activity ............................................. ............................... 80 Schedule of Changes by Function and Activity ........................... ............................... 82 Statistical Section (Unaudited) Net Assets by Component ........................................................... ............................... 84 Changesin Net Assets ................................................................ ............................... 86 Fund Balance of Governmental Funds ......................................... ............................... 88 Governmental Activities Tax Revenues by Source ...................... ............................... 90 Changes in Fund Balances of Governmental Funds ..................... ............................... 92 Direct and Overlapping Governments ......................................... ............................... 94 Assessed Value of Taxable Property ........................................... ............................... 96 Principal Property Taxpayers ........................................................ .............................98 Property Tax Levies and Collections ........................................... ............................... 99 Ratios of Outstanding Debt by Type ......................................... ............................... 100 Ratios of General Bonded Debt Outstanding ............................. ............................... 102 Legal Debt Margin Information ................................................ ............................... 104 Direct and Overlapping Governmental Activities Debt .............. ............................... 106 Demographic and Economic Statistics ...................................... ............................... 107 PrincipalEmployers ................................................................ ............................... 108 Full -Time Equivalent City Government Employees by Function ............................... 110 Operating Indicators by Function .............................................. ............................... 112 Capital Asset Statistics by Function .......................................... ............................... 114 11 J SARq a q 1956 N Q` �IF0 INTRODUCTORY SECTION This page is intentionally blank. November 12, 2012 CITY OF SARATOGA Honorable Mayor and City Council, CITY HALL 13777 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 (40 8) 868 -1200 The Comprehensive Annual Financial Report (CAFR) of the City of Saratoga for the year ended June 30, 2012 is hereby submitted as mandated by applicable statutes. These statutes require that the City of Saratoga annually issue a report on its financial position and activity, and that an independent firm of certified public accountants audit this report. Responsibilities for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures, rests with the City's management. The information contained in this report is intended to present the reader with a comprehensive view of the City's financial position and the results of its operations for the fiscal year ending June 30, 2012, along with additional disclosures and financial information designed to enable the reader to gain an understanding of the City's financial activities. This report was prepared as prescribed in Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management's Discussions and Analysis -for State and Local Governments. To facilitate the general public's understanding and usefulness of the City of Saratoga's financial statements, GASB Statement 34 requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This letter of transmittal is designed to complement the MD &A and should be read in conjunction with it. THE REPORTING ENTITY AND ITS SERVICES The City of Saratoga (City), incorporated in 1956, is located 40 miles south of San Francisco in the Santa Clara Valley. The City currently covers a land area of approximately 12 square miles and contains a population of 30,363 at January 1, 2012 as reported by the Department of Finance. The City is a general law city of the State of California and operates under a council- manager form of government. Policymaking and legislative authority are vested in the City Council, which consists of a Mayor, Vice Mayor and three additional council members. City Council members are elected at -large for staggered four -year terms. The Mayor is selected annually by the City Council. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing members to the City's seven advisory commissions and hiring the City Manager and City Attorney. The City Manager is responsible for implementing the policies and ordinances of the City Council, overseeing the daily operations of the City, and recommending appointments of the City's department directors to the City Council. The City provides a limited range of services including public safety, development regulation, public works, community and recreation activities and events, and general administrative functions. As a minimal service city, activities are supplemented through numerous contracts with others. Contracted services include, but are not limited to, public safety, infrastructure maintenance, engineering services, legal services and recreation activities. The City is also committed to citizen participation in the evaluation, expansion and enhancement of services. Saratoga residents who wish to assist the City Council in forming government policy may do so by serving on an advisory commission. The commissions act in an advisory capacity to the City Council, and are comprised of the Heritage Preservation Commission, Library Commission, Parks and Recreation Commission, Planning Commission, Public Safety Commission, and Youth Commission. The financial reporting entity (the City) includes all the fund activity of the primary government, as well as all of its component units. Component units are legally separated entities for which the City is fully accountable. The City's Saratoga Public Financing Authority (PFA) component unit which provided financial oversight of local bond obligations was finalized in fiscal year 2005 /06. The Authority's final financial report was issued for fiscal year 2006/07. Blended component units, although legally separate entities, are in substance, part of the City's operations and data from these units are combined with data of the City. Accordingly, the operations of the Landscaping and Lighting Assessment Districts are reported in the City's financial statements. ECONOMIC CONDITIONS AND OUTLOOK As is typical for California cities, property tax and sales tax revenues are the City of Saratoga's two largest sources of funding. Effective with the 2006/07 fiscal year, the City began receiving a significant increase in property tax revenues due to the passage of Assembly Bill 117. This legislation increased the property tax percentage allocated to the City as a result of the Tax Equity Allocation (TEA) formula. Assembly Member Cohn sponsored the bill which resulted from a joint effort of the City of Saratoga, Santa Clara County and 3 other affected cities — Cupertino, Monte Sereno and Los Altos Hills. While the TEA legislation restored the cities to the full "low tax" level of 7 %, the State required the cities to continue to remit the County's ERAF rate on these funds so that the bill would have no effect on the State budget. The ERAF rate the County remits is 47.7 %, compared to the City of Saratoga's rate of 17.14 %, thereby resulting in a significant impact to the revenues received. For Saratoga, these two main funding sources were considered to be stable and reliable, growing steadily. While the City did not suffer a severe decline in these two revenue sources with the economic downturn of 2008, the backlash impact on planning fees, building permits and interest revenues contributed to create a substantial overall revenue downturn over the next three years which resulted in staffing and operational reductions. In the spring of 2012, signs of recovery began to emerge with steady increases in planning fees and building permits. Property Tax revenues increased, specifically from property transfer tax fees. Sales Tax revenues also increased, back to the 2008 level. While encouraging, a slow growth pace is expected in future years as the City's structure consists mostly of built -out residential neighborhoods and a small number of commercial developments thereby limiting large revenue sources. California's overall economy appears to be slowly improving; however, the State's finances continue to be in dire straits. While Proposition IA protects the city from further ongoing unrestrained State takeaways of property tax revenues, under the current economic crisis, the City expects to see shortfalls in unprotected State or County based funding. The State's November 2012 proposed tax increase bill may help offset additional impacts to city governments if passed by voters, nonetheless fiscal uncertainty remains and the City plans to continue to maintain operations at core service levels and prepare for funding impacts as the new normal of government emerges. The Capital Improvement Program continues to be funded through dedicated funding sources, grant money, and residual funding from prior year operations. """A" /r:11 10CI7 7u E1 Y [s] W.11 100JEW1111AWN1 I�TI [A V Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state and local financial assistance, the City is also responsible for guaranteeing that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by the City's management. The City has practiced a passive approach to investments and maintains flexibility by managing a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds with maturities planned to coincide with cash needs. Idle cash is invested in certain eligible securities as constrained by law and further limited by the City's investment policy. The goals of the City's investment policy are safety, liquidity and yield. In addition, the City maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund, special revenue funds, capital projects funds and debt service funds are included in the annual appropriation. The level of budgetary control (i.e., the level at which expenditures cannot exceed the appropriated amount) is at the fund level. The City also maintains an encumbrance accounting system as another method of maintaining budgetary control. Encumbered amounts lapse at year -end with the exception of the Capital Improvements Projects, which are multiple -year projects. On occasion, outstanding encumbrances of a material nature are reviewed by the responsible department at year end, and if deemed critical, a recommendation is made to the City Council to take action by Resolution to re- appropriate these funds into the following year's budget. The fiscal year 2011/12 budget was developed with a focus on attaining a sustainable budget structure which maintained service levels under expectations of continued revenue reductions. With the potential for further takeaways due to the State's fiscal struggles, departmental budgets were again held to non - expansive levels, ongoing replacement funding was reduced, and staffing costs were lowered through a furlough placeholder in anticipation of benefit restructuring through upcoming labor negotiations. Additionally, one -time funding from reserves was used to balance the budget as a temporary bridge to offset expected revenue shortfalls during the downturn. OTHER INFORMATION Independent Audit — California law requires cities to prepare an annual audit by an independent certified public accountant. In addition to meeting the requirements set forth in statutes, the audit was also designed to meet the requirements of the federal Single Audit Act of 1984, as amended, and the related U.S. Office of Management and Budget's Circular. Generally accepted auditing standards set forth in the General Accounting Office's Government Auditing Standards were used by the auditors in conducting the engagement. The auditor's unqualified report is included in the financial section of this report. Vavrinek, Trine, Day & Co., LLP Certified Public Accountants performed the City's Fiscal Year 2011/12 financial audit. Awards — The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement to the City for its Excellence in Financial Reporting on the CAFR for the fiscal year ended June 30, 2011. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. The Certificate of Achievement is valid for a period of one year. We believe our current CAFR continues to meet the Certificate of Achievement program's requirements, and plan on submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements — This CAFR represents the culmination of numerous hours of hard work expended by many individuals in the Finance & Administrative Services Department. In particular, we would like to express our appreciation to Robert Edris, Sr. Accountant for his exemplary preparation of this annual financial report, and to our supporting staff members: Glenda Cracknell, Sr. Accountant; Ann Xu, Accountant; Julie Ingraham, and Karen Caselli, Accounting Technicians for all their assistance with the audit and exemplary services throughout the year. Furthermore, we would like to thank Vavrinek, Trine, Day & Co. LLP, CPA's for their helpful assistance in the preparation of this report. Finally, we would like to give credit to the City Council for their ongoing interest and support in planning, conducting and advising on the operations of the City in a responsible and representative manner. Respectfully submitted, 6�-' �Avtv� Dave Anderson Mary Furey I City Manager Finance and Administrative Services Director 4 Certificate of Achievement for Excellence in Financial Reporting Pru.suntied to City of Saratoga Califomia For its Comprehensive Annual 1=inan6al Report for the Fiscal Yew Ended June 30, 2011 A Ccrifficate of Achiewment for F�xocllcncc in Financial Reporting tq prmcntcd by the Govemmcnt Financc Officcni Agsix:iation of tht United Seats and Canada Lo govertmient units and public employee retirement symcm,4 whoic compTelionsdve annual finamial repcwu (CAM:) orhieve Ohc higlicst. --tandarth; in �,Ovtmrncut accu--k-k; AM 5313116a] reparfirLg- President Executive Diredor CITY OF SARATOGA ELECTED OFFICIALS AND ADMINISTRATIVE PERSONNEL As of June 30, 2012 101 M•ZKIIi1e[y 1 I Chuck Page - Mayor Jill Hunter — Vice Mayor Howard Miller Emily Lo Manny Cappello CITY STAFF Dave Anderson — City Manager Crystal Morrow — City Clerk Mary Furey — Finance & Administrative Services Director James Lindsay — Community Development Director John Cherbone — Public Works Director Michael Taylor — Recreation & Facilities Director CITY ATTORNEY Richard S. Taylor — Shute, Mihaly & Weinberger INDEPENDENT AUDITORS Vavrinek, Trine, Day & Co., LLP, CPA 6 of SARq C,, f 1956 C'9LlFOAN�P City of Saratoga - Organization Chart Citizens of Saratoga Elected City Council Citizen Advisory Commissions and Committees City Manager's Office 1 Administrative Analyst Recreation & Community Facilities Department Development Department Recreation & Facilities Director Community City Manager Recreation Services Planning Division Division 1 Senior Planner 1 Senior Recreation 2 Assistant planners Supervisor I Arborist 1 Recreation Supervisor H I Office Specialist Facilities Division Building Division 1 Facility Maint. 1 Building Official Supervisor 2 Building Inspectors 1 FacilityMaint. 1 Code Compliance Leadworker Specialist City Attorney Office of the City Clerk I City Clerk .45 Deputy City Clerk Public Works Department Public Works Director Engineering Division 1 Sr. Civil Engineer 1 Associate Engineer .90 Administrative Analyst .75 Office Specialist Administrative Services Department Administrative Services Director Streets and Fleet Division I Manager - Streets and Fleet 1 Street Maint. Leadworker 1 Street Maint. Specialist 4 Street Maint. Workers Parks Division I Manager - Parks 1 Park Maint. Leadworker 1 Park Maint. Specialist 5.90 Park Maint. Workers Finance Division .90 Accountant 3 Accounting Technicians Information Technology Division 1 IT Analyst Human Resources Division 1 HR Manager This page is intentionally blank o{ A T 1956 IL FINANCIAL SECTION .: This page is intentionally blank VAVRINEK, TRINE, DAY & COMPANY, LLP Mike— Certified Public Accountants 1111 7 04 9 0110 1:1 Mel II:1 1 • To the Honorable Mayor and Members of the City Council of the City of Saratoga Saratoga, California We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Saratoga (the City), as of and for the year ended June 30, 2012, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Saratoga, as of June 30, 2012, and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated November 12, 2012, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and required supplementary information as outlined in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Saratoga, California's financial statements as a whole. The introductory section, combining individual non -major fund statements and schedules, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining individual non -major fund statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. r Pleasanton, California November 12, 2012 10 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 INTRODUCTION The following provides a narrative overview and analysis of the fiscal operations during the fiscal year ended June 30, 2012 for the City of Saratoga. The Management Discussion and Analysis (MD &A) is to be read in conjunction with the annual Transmittal Letter and the Basic Financial Statements. FISCAL YEAR 2011/12 FINANCIAL HIGHLIGHTS • The City's total net assets were $125,387,400, comprised of $111,201,676 for investment in capital assets, net of depreciation and related debt; $1,938,101 restricted for specific purposes; and $12,247,623 unrestricted net assets (reference pg #25). • Total City revenues were $22,486,326 which consists of program revenue of $9,282,412 and general revenues of $13,203,914 (reference pg #26). • The City's expenses were $20,909,353 (reference pg #26). • Total Governmental Fund's fund balances were $13,898,245, consisting of $8,929,121 in the General Fund, $3,544,205 in the Capital Improvement Funds, and $1,424,919 in the Other Governmental Funds (reference pg #27). • General Fund revenues were $16,230,631, while General Fund expenditures were $14,710,796 (reference pg #27). THE BASIC FINANCIAL STATEMENTS The Basic Financial Statements are comprised of 1) Government -wide (City -wide) Financial Statements, and; 2) Fund Financial Statements. These two sets of financial statements provide the reader two different perspectives of the City's financial activities and financial position. Government -Wide Financial Statements provide a longer -term view of the City's activities as a whole, and comprise the Statement of Net Assets and the Statement of Activities. The Statement of Net Assets provides information about the financial position of the City as a whole, including all its capital assets and long -term liabilities on a full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City's revenues and all its expenses, also on a full accrual basis, with the emphasis on measuring net revenues and/or expenses for each of the City's programs. The Statement of Activities explains in detail the change in Net Assets for the fiscal year. All of the City's activities are required to be grouped into government activities and business -type activities. The entire amount in the Statement of Net Assets and the Statement of Activities are also required to be separated into governmental activities or business -type activities in order to provide a summary of these two activities of the City as a whole. In the case of the City of Saratoga, there are no business -type activities as of June 30, 2012. Fund Financial Statements report the City's operations in more detail than the government -wide statements and focus primarily on the short-term activities of the City's general fund and other major funds. The Fund Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long -term debt, and other long -term amounts. 11 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 Major funds account for the major financial activities of the City and are presented individually, while the activities of non -major funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. Major funds are explained below. The Government -Wide Financial Statements Government -wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. The Statement of Net Assets and the Statement of Activities present information about the following: Governmental Activities - All of the City's basic services are considered to be governmental activities, including general government, community development, public safety, transportation, and, culture and leisure. These services are supported by general City revenues such as taxes, and by specific program revenues such as developer and recreation program fees. Business -Type Activities - This category includes enterprise activities such as water, sewer, and utilities. Unlike governmental services, these services are fully supported by charges paid by users based on the amount of services they use. The City of Saratoga does not have any business -type activities at this time. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Fund financial statements provide detailed information about each of the City's most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented individually, with all non -major funds summarized and presented only in a single column. Subordinate schedules present the detail of these non -major funds. Major funds present the major activities of the City for the fiscal year, and may change from year to year as a result of changes in the pattern of the City's activities. The City's funds are segregated into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds - The City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances available at year -end. Financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Carrying amounts for capital assets and other long -lived assets, along with long -term liabilities are not presented on the balance sheet in the governmental fund financial statements. Unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City's near -term financing requirements. Proprietary Funds — Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for liability and risk management, workers compensation, office equipment support services, information technology services, vehicle and building maintenance, and vehicle and information technology equipment replacement. Because the internal service funds benefit the governmental functions, they have been included with the governmental activities in the government -wide financial statements. 12 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 Fiduciary Funds — These funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. Fiduciary funds are not reflected in the government -wide financial statements because these resources are not available to support the City's programs. Currently the City does not have any fiduciary funds. NOTES TO THE FINANCIAL STATEMENTS Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes can be found immediately following the fund financial statements. REQUIRED SUPPLEMENTARY INFORMATION Required supplementary information other than through the MD &A follows the Notes and includes a budgetary comparison for the General Fund as presented in the governmental fund financial statements, and information on the modified approach for city streets and infrastructure. SUPPLEMENTARY INFORMATION Combining and individual fund statements and schedules are included to provide additional information on non -major governmental funds including special revenue, debt service, and capital project funds, as well as proprietary internal service fund information and uses of capital assets. An un- audited statistical section provides historical and current data on financial trends, revenue and debt capacity, demographic and economic information, and operating information. GOVERNMENT -WIDE FINANCIAL ANALYSIS Net assets may serve over time as an indicator of the City's financial position. The City's Total Net Assets increased $1,576,973, from $123,810,427 in fiscal year 2010/11 to $125,387,400 in fiscal year 2011/12. The most significant portion of the City's net assets ($111,201,676 or 88.7 %) accounts for its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.) less any related debt used to acquire those assets that are still outstanding. These capital assets represent infrastructure which provides services to the citizens, consequently, these assets are not available for future spending. $1,938,101 or 1.5% of the City's net assets are subject to external restrictions on how they may be used. Of these restricted net assets, $513,182 is restricted for lighting and landscaping assessment districts $562,504 is restricted to environmental programs, and $862,415 is for repayment of long -term debt. The remaining $12,247,623 or 9.8% of the City's net assets are unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. 13 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 Net Ass ets Governmental Activities 2012 2011 Assets Current assets $ 18,023,582 $ 16,825,492 Non - current assets - 45,004 Capital assets 123,196,676 122,620,887 Total Assets 141,220,258 139,491,383 Liabilities Current liabilities 4,051,633 3,123,915 Long -term debt 11,781,225 12,557,041 Total Liabilities 15,832,858 15,680,956 Net Assets Investment in capital assets, net of related debt 111,201,676 110,015,887 Restricted for Special Assessment Funds 513,182 504,125 Restricted for Environmental Services 562,504 513,182 Restricted for Debt Service 862,415 850,657 Unrestricted 12,247,623 11,926,576 Total Net Assets $ 125,387,400 $ 123,810,427 14 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 Statement of Changes in Net Assets Functions /Programs Program Revenues Charges for services Operating grants and contributions Capital grants and contributions Total Program Revenues General Revenues Property taxes Sales taxes Local taxes Franchise taxes Motor vehicle in -lieu Intergovernmental revenues Investment earnings Other revenues Total General Revenues Expenses General and intergovernmental services Public safety Public works Conn mnity services Community development services Interest on long-term debt (unallocated) Total Expenses Increase / (Decrease) in Net Assets Net Assets, Beginning of Year Net Assets, End of Year Governmental Activities 2012 2011 $ 5,625,974 1,319,318 2,337,120 9,282,412 8,456,687 1,100,489 683,383 1,852,390 15,830 910,331 66,623 118,181 13,203,914 3,486,353 4,299,853 9,121,435 1,995,948 1,553,119 452,645 20,909,353 1,576,973 123,810,427 $ 6,257,418 400,692 1,221,238 7,879,348 8,199,341 990,579 632,500 1,821,131 145,782 773,197 64,598 97,472 12,724,600 4,367,615 4,457,478 6,644,742 1,846,393 1,838,918 656,126 19,811,272 Increase (Decrease) $ (631,444) 918,626 1,115,882 1,403,064 257,346 109,910 50,883 31,259 (129,952) 137,134 2,025 20,709 479,314 (881,262) (157,625) 2,476,693 149,555 (285,799) (203,481) $ 1,098,081 792,676 784,297 123,017,751 792,676 $ 125,387,400 $ 123,810,427 $ 1,576,973 As shown in the above Statement of Changes in Net Assets schedule, the net change in program revenues from the prior fiscal year for governmental activities is an increase of $1,403,064. The net change in general revenues from the prior year is an increase of $479,314, for a total increase in revenues of $1,882,378. The net change in expenses from the prior year was an increase of $1,098,081. With total program and general revenues for fiscal year 2011/12 at $22,486,326 and total expenses at $20,909,353, the net activity resulted in an increase in Net Assets of $1,576,973. An analysis and graphical representation of the changes in revenues and expenditures by type of significant events follows: 15 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 CHART OF REVENUE INCREASE OR (DECREASE) Total Revenues by Category ■FY2010 /11 ■FY2011 /12 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 coos oY' b °�ti�io �a.�es d es �a�es � ,es ti�ea saes "0 saes r�s �° $ is & �s g� 4�0Qd" Sees °°al���o,�'ls � °�� erg' �`lge O G 04 aORG W `Vtie�� es Increases in Revenues Overall, the City of Saratoga saw a net increase in revenues during fiscal year 2011/12; however, most of the increases are one -time revenues. For program revenues, the change from the prior year for governmental activities is an increase of $1,403,064 resulting from the following: • A $918,626 increase in Operating Grants represents grants from Santa Clara County and the Mid - Peninsula Open Space District for the purchase of 64 acres of inactive quarry land located off Highway 9 for future use as an open space trailhead park, and another grant for street maintenance resurfacing work. • A $1,115,882 increase in Capital Grants and Contributions comes from a number of grants for capital improvements, such as installation of LED streetlights in the village, Highway 9 Safety Improvements, Quito Road Bridge replacement work, CDBG funded signal light and ramp projects for ADA compliance, and completion of the De Anza Trail project. The net change in general revenues from the prior year is an increase of $479,314. The most significant changes from the prior year include: • A $257,346 increase in Property Tax revenue, primarily representing growth in supplemental property tax and documentary transfer tax which reflects an increase in property turnover. • Growth in the City's retail sales resulted in a $109,910 increase in Sales Tax. 16 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 • A $50,883 increase in Local Taxes represents a strengthening economy through rising hotel tax receipts. • Intergovernmental revenues reflect an increase of $137,134 due primarily increased Gas Tax and Prop 42 revenues from the prior year. Decreases in Revenues • A $631,444 decrease in Charge for Services (in which revenues are directly related to program expenses) represents a combination of various operational activities. Notable decreases include approximately $38,000 in recreation class revenue, $310,000 in park development fees, $68,000 in engineering development fees, $40,000 in bond debt assessments, and $412,000 less in capital project revenues. • A $129,952 decrease in Motor Vehicle -in -Lieu (VLF) revenues resulted from the State eliminating VLF revenue allocation to local agencies as of July 1, 2011. CHART OF EXPENSE INCREASE OR (DECREASE Total Expenses by Category ■FY 2010/11 FY 2011/12 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 106,1 1 �I�te��o,011G5a,°11c i ge��t`3 �)0 0(\_ � Cs God The net change in expenses for Governmental Activities was an increase of $1,098,081. Expenditures with significant events include: Increases in Expenses Increase in expenditures from the prior year was limited to the Public Works and Community Services expenditure categories. These too however, are in large part one -time occurrences. Increase resulted from the following: • Public Works (primarily street capital improvement projects) increased in total by $2,476,693, and Community Services (primarily park capital improvement projects) increased by $149,555. 17 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 Decreases in Expenses While there were several categories of notable decreases in expenditures, the significant increase in capital project expenditures last fiscal year offset the decreases to result in an overall net increase in expenses. Notable decreases included the following: • General and intergovernmental services decreased by $881,262, primarily from expenditure reductions in General Fund staff positions, vacancy savings, benefit costs as a result of labor negotiations, and legal costs. • Public Safety decreased by $157,625 as a result of a reduction in the Sheriff's law enforcement contract • Community Development Services decreased by $285,799, which in large part reflects the $210,748 close out of the Saratoga Housing and Rehabilitation Program (SHARP) as of the end of fiscal year 2010/11. The remainder of the savings is the result of a vacancy savings in the code compliance program. • Interest on Long Term Debt decreased by $203,481 as a result of the General Obligation Bond refunding in fiscal year 2011/12. The decrease in interest rates provided an opportunity to save Saratoga taxpayers a significant amount ($2.67 million over the next twenty years) on the outstanding debt through refunding the original 2001 Library Building bond issue. MAJOR AND OTHER GOVERNMENTAL FUNDS: CHANGE IN FUND BALANCE A summary of the changes in fund balance of the major and other government funds are presented below: Total Revenues Total Expenditures Revenues Over (Under) Expenditures Bond proceeds Payment for refunded bonds Net original issue premium Transfers in Transfers out Net change in fund balances Major Funds Capital General Improvement $ 16,230,631 $ 4,147,953 14,710,796 5,178,900 1,519,835 (1,030,947) 205,222 304,963 (280,000) (205,222) 1,445,057 (931,206) Other Governmental Funds $ 1,423,819 1,573,420 (149,601) 11,995,000 (12,235,000) 459,738 70,137 Beginning of year 7,484,064 4,475,411 1,354,782 End of year $ 8,929,121 $ 3,544,205 $ 1,424,919 Included in the Major Funds are the General Fund and the Capital Improvement Fund. The Other Governmental funds include twenty -five Lighting and Landscape Assessment Districts, accounted for as one fund in the financials and the Library Bond Debt Service Fund. The net change of the Major and Other Governmental Funds fiscal year transactions was an increase of $583,988. 18 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 General Fund - As shown in the preceding Major Funds table, the net change in the General Fund's Fund Balance was an increase of $1,445,057. A net gain resulted from the net of operating revenues coming in over operating expenditures. Most revenue categories increased from the prior year for a net revenue gain of $488,516, most notably property and sales tax revenues, and development fees. Total expenditures decreased by $905,501, with salary and benefit costs accounting for $636,000 of the reduction, and contract services for another $294,000. Revenues are budgeted conservatively based upon prior year experience and specific information, while expenditures are limited to anticipated program needs at not -to- exceed projected funding levels. With the economy strengthening late in the fiscal year, revenue levels improved beyond expectations. In addition, ongoing efforts to hold costs down throughout the year resulted in a significant expenditure savings for the year. Capital Improvement Project Fund - As shown in the table above, the net change in the Capital Improvement Fund has a decrease of $931,206 due to a large amount of capital improvement project work over the course of the year. Other Governmental Funds — Of the net $70,137 increase in Other Governmental Funds, the collective 25 Landscaping & Lighting funds comprise $58,379 of the total. The Library Bond debt service fund accounts for the remaining $11,758 of the increase. Both net gains represent the excess of revenue over expenditures in the normal course of operations. GENERAL FUND — BUDGETARY HIGHLIGHTS Changes from the City's General Fund original budget to the final budget are detailed in the Required Supplementary Information Section along with a comparison to actual activity for the year ended. Changes to the City's budget that increase or decrease appropriations in a fund must be approved by a resolution of the City Council. Modifications to the budget that are a realignment of fiscal activities with no impact to the fund's bottom line may be approved by the City Manager. Expenditures Transfers out Adopted to Final Budget Fiscal Year Ended June 30, 2012 Adopted Budget Final Budget Adjustments Budget $ 15,392,348 61,100 $ 15,453,448 $ 260,000 20,000 $ 280,000 The General Fund adopted expenditure budget was $15,392,348 and adopted transfers out was $260,000. At the City's mid -year review, most General Fund costs were tracking in line with the budget, however adjustments were requested for the Tree Dedication programs of $5,000 for additional tree purchases and a budget adjustment of $56,000 for labor negotiation which were more extensive than expected. A transfer out of $20,000 was for increased funding for the Village Fagade Improvement Program. 19 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 CAPITAL ASSETS The City of Saratoga elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting in which eligible infrastructure capital assets are not required to be depreciated if the following requirements are met: • The City manages the assets using an asset management system which requires that the City (1) perform an up -to -date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate the annual amount to preserve the assets at the established condition assessment level. • The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. City policy is to achieve an average Pavement Condition Index (PCI) rating of 70 for all streets, at minimum. The City's overall rating was 76 with 83% of streets rated as Excellent to Very Good, 14% of streets are rated as "Good ", 3% of streets rated "Poor ", and 0% of streets are rated as "Very Poor ". The City spent $2,856,603 to maintain and preserve eligible infrastructure assets. For more detailed information on Capital Assets activity, please refer to Note 4 in the section entitled "Notes to the Basic Financial Statements" and Note 2 in the "Required Supplementary Section ". The latest assessment study was conducted during the fall of 2010. A road assessment study update will be conducted in the fall of 2013. As of June 30, 2012, the City had $123,196,676 invested in a variety of capital assets as reflected in the following schedule, which represents an increase of $575,789 or a 0.5% increase from the prior year. Capital Assets at Year End Net of Depreciation Land Building and structures Machinery and equipment Infrastructure Construction in progress Total Capital Assets, Net of Depreciation 20 Governmental Activities 2012 2011 $ 14,510,401 $ 13,135,756 16,969,831 17,407,842 604,135 690,356 83,945,356 85,138,639 7,166,953 6,248,294 $ 123,196,676 $ 122,620,887 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 The following reconciliation summarizes the changes in Capital Assets. Land Building and structures Machinery and equipment Infrastructure Construction in progress Depreciation Total Capital Assets, Net of Depreciation Changes in Capital Assets Balance July 1, 2011 Additions Retirements $ 13,135,756 $ 750,000 $ - 23,462,738 - - 2,487,345 22,487 (132,534) 104,903,913 - - 6,248,294 1,782,425 (19,785) (27,617,159) (1,959,338) 132,534 Reclassification $ 624,645 148,852 45,484 25,000 (843,981) Balance June 30, 2012 $ 14,510,401 23,611,590 2,422,782 104,928,913 7,166,953 (29,443,963) $ 122,620,887 $ 595,574 $ (19,785) $ - $ 123,196,676 Major capital projects in progress during fiscal year 2011/12 included the following expenditures: • Congress Springs Quarry Land - $1,000,000 ($750,000 funded by donations) • Saratoga Avenue Resurfacing - $143,522 • Street Resurfacing funded by VTA Grant - $565,000 • Highway 9 Traffic Safety - $126,164 • Village LED Street Lights - $381,803 • Village Sidewalk, Curb, and Gutters - $161,465 • Village — Phase II Design - $172,554 • UPRR/De Anza Trail - $557,902 • Library Improvements - $196,686 Additional information on Capital Assets is included in Note 4 to the financial statements. DEBT AND OTHER LONG -TERM OBLIGATION ADMINISTRATION The net change in outstanding obligations for the City of Saratoga is a decrease of $245,787, with $172,154 of this amount a reduction in long -term debt. During the fiscal year, the City refunded the 2001 General Obligation Bonds and issued the 2011 General Obligation Bonds to take advantage of the favorable interest rate environment. Outstanding Long -Term Obligation at Year Fnd 2001 General Obligation Bond 2011 General Obligation Bond Net Original Issue Premuim Compensated absences Total Outstanding Debt 21 Governmental Activities 2012 2011 $ - $ 12,605,000 11,995,000 - 437,846 - 646,213 719,846 $ 13,079,059 $ 13,324,846 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 The current portion of long -term debt ($455,000 for the 2011 General Obligation Bonds for fiscal year 2012 and $370,000 for the refunded 2001 General Obligation Bonds for fiscal year 2011), is classified as a current liability in the City's Statement of Net Assets. 2001 General Obligation Bond - During the fiscal year, the City made debt service payments that include a principal reduction of $370,000 on the City's 2001 General Obligation $15,000,000 bond issue. This bond issue was retired in July, 2011. 2011 General Obligation Bond — The City refunded the 2001 General Obligation Bonds and in their place issued general obligation bonds in the amount of $11,995,000 on July 14, 2011 with interest rates on the bonds ranging from 2.0% to 4.0 %, ending in fiscal year 2031/32. No principal payment was due during fiscal year 2011/12. Compensated absences are accrued liabilities for vested and unpaid vacation and sick pay. The compensated absences balance decreased during the fiscal year by $73,633 due to payouts of unused compensated absences of retiring and terminated employees, and general employee payouts. An estimated current liability of $404,988 is expected to be used in the next fiscal year. Additional information on outstanding obligations can be found in Note 5 to the financial statements. ECONOMIC FACTORS At the time the fiscal year 2011/12 budget was developed, the nation was in the throes of the economic recession. Locally, it was expected that a "new normal" of government was upon us: • Property prices had stabilized at diminished levels and property tax revenue growth had stagnated • Retail sales would remain sluggish for years to come, and sales tax revenues would remain flat • Development would continue at diminished levels, with very little increase in revenues • Interest rates would remain at historic lows for years, practically eliminating interest earnings With revenue projections at lowered levels, a number of expenditure reductions were required to balance the budget: • Core services levels would be maintained through continued operational budget reductions • Internal service funds would continue to be underfunded • Limited capital funding appropriations • Development Reserve budgeted for use per established policy • Pension Reform In the midst of the economic downturn, benefit costs were escalating. Taxpayers demanded cutbacks to government salaries and benefits as the pathway to attain fiscal sustainability. Approximately $300,000 of savings was budgeted through reductions in staffing costs. Initially this was structured as furlough days; however upcoming labor negotiations would finalize the saving mechanism during the course of the year. In negotiations, labor costs were reduced through pension reform. Most notable of the changes have future employees falling under a lower cost pension plan and the capping of medical benefits, and current employees are now paying the employee portion of the pension benefit plan. These changes are expected to contribute significantly toward the City having a sustainable budget in future years. 22 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2012 As a local (Bay Area) economic revival has led to property tax, sales tax, and development revenues increasing during the course of the year, fiscal uncertainty remains for the foreseeable future, and the City plans to continue to maintain operations at core service levels and prepare for funding impacts as the new normal of government continues to emerge. REQUEST FOR FINANCIAL INFORMATION This financial report is designed to provide a general overview of the City of Saratoga's finances for all of Saratoga's residents, taxpayers, customers, investors, and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Administrative Services Department, 13777 Fruitvale Avenue, Saratoga, California 95070. 23 This page is intentionally blank. 24 fS A a 1956 -1 -iIFORJ� BASIC FINANCIAL STATEMENTS 0 This page is intentionally blank CITY OF SARATOGA STATEMENT OF NET ASSETS JUNE 30, 2012 Primary Government Capital Assets: Governmental Non - depreciable Activities ASSETS 52,363,703 Current Assets: 123,196,676 Cash and investments $ 15,705,028 Receivables: 141,220,258 Accounts 2,305,868 Interest 12,686 Total Current Assets 18,023,582 Noncurrent Assets: 1,487,083 Capital Assets: 118,584 Non - depreciable 70,832,973 Depreciable, net 52,363,703 Total Capital Assets 123,196,676 Total Noncurrent Assets 123,196,676 Total Assets 141,220,258 LIABIL1TUN Current Liabilities: Accounts payable 1,487,083 Accrued payroll 118,584 Other payable 36,410 Interest payable 173,765 Deposits payable 916,710 Claims payable 21,247 Long -term obligations - due within one year 881,880 Total Current Liabilities 3,635,679 Noncurrent Liabilities: Long -term obligations - due in more than one year 12,197,179 Total liabilities 15,832,858 Net As s ets Investment in capital assets, net of related debt 111,201,676 Restricted for: Environmental funds 513,182 Special assessment funds 562,504 Debt service 862,415 Total Restricted 1,938,101 Unrestricted 12,247,623 Total Net Assets $ 125,387,400 The accompanying notes are an integral part of these financial statements 25 CITY OF SARATOGA STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS JUNE 30, 2012 Net (Expense) Revenue and Changesin Program Revenues Net Assets Primary Operating Capital Government Charges for Grants and Grants and Governmental Functions /Programs Expenses Services Contributions Contributions Total Activities Primary Government: Gowrnmental Activities: General and intergovtl services $ 3,486,353 $ 139,936 $ - $ $ 139,936 $ (3,346,417) Public safety 4,299,853 594,129 100,000 694,129 (3,605,724) Public works 9,121,435 2,079,334 469,318 2,337,120 4,885,772 (4,235,663) Community services 1,995,948 889,926 750,000 - 1,639,926 (356,022) Community development services 1,553,119 1,922,649 - 1,922,649 369,530 Interest on long -term debt (unall.) 452,645 - - - (452,645) Total $ 20,909,353 $ 5,625,974 $ 1,319,318 $ 2,337,120 $ 9,282,412 $ (11,626,941) General Revenues: Taxes Property taxes Sales taxes Localtaxes Franchise taxes Motor vehicle -in -lieu Total taxes Intergovernmental Investment earnings Other revenues Total General Revenues Change in Net Assets Net Assets - Beginning of Year Net Assets - End of Year The accompanying notes are an integral part of these financial statements 26 8,456,687 1,100,489 683,383 1,852,390 15,830 12,108,779 910,331 66,623 118,181 13,203,914 1,576,973 123,810,427 $ 125,387,400 CITY OF SARATOGA GOVERNMENTAL FUNDS - BALANCE SHEET JUNE 30, 2012 The accompanying notes are an integral part of these financial statements 27 Major Funds Other Total Capital Governmental Governmental General Improvement Funds Funds ASSETS Cash and investments $ 9,859,219 $ 2,871,500 $ 1,457,810 $ 14,188,529 Receivables: Accounts 587,485 1,591,861 3,204 2,182,550 Interest 11,670 - 1,016 12,686 Total assets $ 10,458,374 $ 4,463,361 $ 1,462,030 $ 16,383,765 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 472,234 $ 917,950 $ 37,111 $ 1,427,295 Accrued payroll 103,889 1,206 - 105,095 Deposits payable 916,710 - - 916,710 Otherpayable 36,410 - - 36,410 Deferred revenue 10 - - 10 Total liabilities 1,529,253 919,156 37,111 2,485,520 Fund Balances : Restricted: Environmental services 513,182 - - 513,182 Special assessment funds - - 562,504 562,504 Debt service - - 862,415 862,415 Committed: Capital project funds - 3,544,205 - 3,544,205 Hillside stability 600,000 - - 600,000 Assigned: Capitalprojects 1,923,658 - - 1,923,658 Carryforwards 247,201 - - 247,201 Unassigned: Operations 2,914,426 - - 2,914,426 Economic uncertainy 1,500,000 - - 1,500,000 Development services 667,233 - - 667,233 Uncollected deposits 44,791 - - 44,791 Otherunassigned 518,630 - - 518,630 Total fund balances 8,929,121 3,544,205 1,424,919 13,898,245 Total liabilities and fund balances $ 10,458,374 $ 4,463,361 $ 1,462,030 $ 16,383,765 The accompanying notes are an integral part of these financial statements 27 CITY OF SARATOGA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 Total Fund Balances -Total Governmental Funds $ 13,898,245 Amounts reported for governmental activities in the statement of net assets were different because: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were 92,854 adjusted as follows: Non - depreciable capital assets 70,832,973 Depreciable capital assets, net 52,297,554 Total Capital Assets 123,130,527 Interest payable on long -term debt did not require current financial resources. Therefore, (646,213) interest payable was not reported as a liability in Governmental Funds Balance Sheet. (173,765) Internal service funds are used by management to charge the costs of office stores, vehicle and equipment maintenance and replacement, information services and replacement, building maintenance, risk management, and workers compensation. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net assets 1,518,598 Long -term receivables were not current available resources and therefore, were offset by a deferred revenue amount equal to the net receivable in the governmental funds. 92,854 Long -term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long -term liabilities were adjusted as follows: General obligation bonds (11,995,000) Compensated absences (646,213) Net original issue premium (437,846) Total Long -Term Obligations (13,079,059) Net Assets of Governmental Activities $ 125,387,400 The accompanying notes are an integral part of these financial statements 28 CITY OF SARATOGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2012 EXPENDITURES: Major Funds Current: Other Total General and intergovernmental services Capital Governmental Governmental REVENUES: General Improvement Funds Funds Property taxes $ 8,272,456 $ - $ 184,242 $ 8,456,698 Special assessments 7,490 1,269,497 1,235,325 1,242,815 Sales taxes 1,100,489 - - 1,100,489 Other local taxes 683,383 - - 683,383 Licenses & permits 1,184,099 543,714 - 1,727,813 Fines & forfeiture 233,708 300 - 234,008 Intergovernmental - Federal - 1,915,187 - 1,915,187 Intergovernmental - State 232,505 1,495,452 - 1,727,957 Intergovernmental - Other 42,343 30,531 - 72,874 Franchise fees 1,852,390 - - 1,852,390 Use of money and property 552,672 32,190 4,252 589,114 Other revenue 2,069,096 130,579 - 2,199,675 Total revenues 16,230,631 4,147,953 1,423,819 21,802,403 EXPENDITURES: Current: General and intergovernmental services 2,924,958 - 219,738 3,144,696 Public safety 4,310,113 - - 4,310,113 Public works 4,318,432 - 432,862 4,751,294 Community services 1,269,497 - - 1,269,497 Community development services 1,887,796 - - 1,887,796 Capital outlay - 5,178,900 - 5,178,900 Debt service: Principal - - 370,000 370,000 Interest and fiscal charges - - 550,820 550,820 Total expenditures 14,710,796 5,178,900 1,573,420 21,463,116 REVENUES OVER (UNDER) EXPENDITURES 1,519,835 (1,030,947) (149,601) 339,287 OTHER FINANCING SOURCES (USES): Bond proceeds - - 11,995,000 11,995,000 Payment for refunded bonds - - (12,235,000) (12,235,000) Net original issue premium - - 459,738 459,738 Transfers in 205,222 304,963 - 510,185 Transfers out (280,000) (205,222) - (485,222) Total other financing sources (uses) (74,778) 99,741 219,738 244,701 Net change in fund balances 1,445,057 (931,206) 70,137 583,988 FUND BALANCES: Beginning of year 7,484,064 4,475,411 1,354,782 13,314,257 End of year $ 8,929,121 $ 3,544,205 $ 1,424,919 $ 13,898,245 The accompanying notes are an integral part of these financial statements. CITY OF SARATOGA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 30, 2012 Net Change in Fund Balances - Total Governmental Funds $ 583,988 Amounts reported for governmental activities in the Statement of Activities and Changes in Net Assets were different because: Governmental Funds report capital outlay as expenditures. However, in the Government -Wide Statement of Activities and Changes in Net Assets, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period. 1,775,127 Governmental Funds focus on current financial resources. Consequently, donations of assets that will be used in operatons, rather than sold (capital assets), are never reported in governmental funds but are reported on the Government -Wide statements. 750,000 Depreciation expense on capital assets was reported in the Government -Wide Statement of Activities and Changes in Net Assets, but it did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the Governmental Funds. (1,864,924) Internal service funds are used by management to charge the costs of office stores, vehicle and equipment maintenance and replacement, information services and replacement, building maintenance, risk management, and workers' compensation. The net revenue or (excess expenses) of the internal service funds is reported with government activities. (6,144) Certain revenues were not recorded or recorded as deferred revenue in the governmental funds because they did not meet the revenue recognition criteria of availability. However, they were included as revenue in the Government -Wide Statement of Activities and Changes in Net As s es s under the full accrual bas is. (5,036) Long -term compensated absences and claims payables were reported in the Government -Wide Statement of Activities and Changes in Net Assets, but they did not require the use of current financial resources. Therefore, long- termcompensated absences and claims payable were not reported as expenditures in governmental funds. Compensated absences 73,633 Repayment of bond principal was an expenditure in governmental funds, but the repayment reduced long -term liabilities in the Government -Wide Statement of Net Assets. Long -term debt repayments 610,000 Revenues resulting from the refunding of outstanding debt are not available to pay current-period expenditures and therefore, are revenue in the funds. Net original issue premium (437,846) Interest expense on long -term debt was reported in the Government -Wide Statement of Activities and Changes in Net Assets, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the change in accrued interest from prior year. 98,175 Change in Net Assets of Governmental Activities $ 1,576,973 The accompanying notes are an integral part of these financial statements 30 CITY OF SARATOGA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2012 ASSETS Current assets: Cash and investments Accounts receivable Total current assets Noncurrent assets: Capital assets: Machinery and equipment Less: accumulated depreciation Total capital assets (net of accumulated depreciation) Total assets Li4,BIL1TIFS Liabilities: Current assets: Accounts payable Accrued payroll Other payables Total current liabilities NET AS SETS Investment in capital assets Unrestricted Total net assets Governmental Activities - Intemal Service Funds $ 1,516,499 30,474 1,546,973 724,059 (657,910) 66,149 1,613,122 59,788 13,489 21,247 94,524 66,149 1,452,449 $ 1,518,598 The accompanying notes are an integral part of these financial statements 31 CITY OF SARATOGA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2012 Operating revenues: Charges for services Other operating revenues Total operating revenues Operating expenses: Cost of services Administration Depreciation Total operating expenses Operating income (loss) Transfers out Change in net assets Total net assets - beginning Total net assets - ending Governmental Activities - Internal Service Funds $ 2,030,000 83,082 2,113,082 1,006,223 993,626 94,414 2,094,263 18,819 (24,963) (6,144) 1,524,742 $ 1,518,598 The accompanying notes are an integral part of these financial statements 32 CITY OF SARATOGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS JUNE 30, 2012 Cash flows from operating activities: Receipts from customers and users Payments to suppliers Payments to employees Net cash provided (used) by operating activities Cash flows from noncapital financing activities: Transfers out Net cash used in nonoperating activities Cash flows from capital activities: Acquisition of capital assets Net cash provided forthe acquisition of capital assets Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, ending of year Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Change in operating assets and liabilities: (Increase) in accounts receivables Increase in accounts payable Increase in claims payable (Decrease) in accured payroll Net cash provided (used) by operating activities The accompanying notes are an integral part of these financial statements 33 Governmental Activities - Internal CPrvicP FllndQ $ 2,082,608 (1,210,167) (776,417) 96,024 (24,963) (24,963) (10,000) (10,000) 61,061 1,455,438 $ 1,516,499 $ 18,819 94,414 (30,474) 6,153 7,156 (44) $ 96,024 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Saratoga, California, (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Financial Reporting Entity The City was incorporated as a municipal corporation in 1956 under the general laws of the State of California, and had a population of 30,363 at June 30, 2012. The City is a largely residential community located in the foothills of the Santa Cruz Mountains. The City operated under the Council- Manager form of government, with five- elected Council members served by a full -time City Manager and staff. At June 30, 2012, the City's staff comprised 54 full -time and nine part-time employees, and numerous recreation seasonal employees who were responsible for the following City provided services: • Public Safety - The City provides round- the -clock police services under a contract with the Santa Clara County Sheriffs offices. Emergency management and Fire services are provided by a special district. Code enforcement and inspection services are provided by City employees. • Public Works /Maintenance - The City builds and maintains its parks, streets, curbs, gutters, and related public property with a force of 22 employees. Major projects may be contracted out to reduce costs. • Community Development - Zoning administration, plan checking and advance planning services are provided by 12 employees. • Culture, Recreation and Community Support services are provided by a total of 10 employees. • General Government services are provided by a total of 11 employees. As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City Council acts as the governing board. In addition, the City staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the government -wide financial statements to emphasize their legal separateness from the City. Each blended component unit has a June 30 year -end. The City had no discretely presented component units. 34 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 The following entity is reported as blended component unit: Lighting and Landscaping Assessment District - The Lighting and Landscaping Assessment District (the District) was established in 1980, for the levy and the collection of assessments upon the several lots or parcels of land in the District, and for the construction or installation of improvements, including maintenance. The District is reported as a blended component unit of the City because it has the same Governing Board as the City. The activity for the District has been included in the accompanying basic financial statements and no separate financial statements are issued. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government -Wide Financial Statements The City's government -wide financial statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of governmental activities for the City. Fiduciary activities of the City are not included in these statements. These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long -term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: Charges for services Operating grants and contributions Capital grants and contributions Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Assets have been eliminated. The following interfund activities have been eliminated: • Transfers in/Transfers out • Internal Service Fund charges Governmental Fund Financial Statements Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the government -wide financial statements. 35 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30. 2012 The City has presented all major funds that met the applicable criteria. The following funds are major funds: General Fund The General Fund is used to account for all of the general resources of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of the City which are not accounted for in another fund. Capital Improvement Capital Projects Fund This fund accounts for resources used for the major capital acquisition and construction activities. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to 45 days after year -end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, special assessments, intergovernmental revenues, other taxes, interest revenue, rental revenue and certain charges for services. Fines, forfeitures, licenses and permits and parking meter revenues are not susceptible to accrual because they are usually not measurable until received in cash. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed from the combined balance sheet and revenue is recognized. Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. Proprietary Funds The City's internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the "economic resources measurement focus ". This means all assets and liabilities (whether current or noncurrent) associated with their activities are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net assets. 36 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value. Non - operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the internal service funds financial statements. Internal service funds account for charges to City departments for services provided, on a cost reimbursement basis, in the following areas: general liability, workers' compensation, office stores, information technology services, vehicle maintenance, building maintenance, equipment replacement, and information technology replacement. Fiduciary Fund Financial Statements During fiscal year 2011/12 the City has no fiduciary responsibility as prior reported agency funds have been transferred to other outside government agencies. C. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: • Interest Rate Risk • Credit Risk — Overall — Custodial Credit Risk — Concentrations of Credit Risk • Foreign Currency Risk Other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year -end and other disclosures. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset - Backed Securities are subject to market risk as to change in interest rates. 37 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 D. Interfund Transactions Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it that are properly applicable to another fund are recorded as expenditures /expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers. E. Capital Assets Capital assets, which include land, buildings, improvements, furniture, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental activities in the government -wide financial statements. Capital assets were recorded at historical cost or estimated historical cost if actual cost was not available. Donated assets were valued at their fair market value on the date of donation. City policy has set the capitalization threshold for reporting capital assets at $10,000. The City has chosen the Modified Approach for reporting the streets subsystem of infrastructure capital assets. Depreciation is recorded on a straight -line basis over the useful lives of the assets as follows: Buildings and structures Machinery and equipment Infrastructure 40 Years 5 to 10 Years 15 to 50 Years In June 1999, GASB issued Statement No. 34 Basic Financial Statements — and Management's Discussion and Analysis —for State and Local Governments which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with Statement No. 34, the City has included the value of all infrastructure in its basic financial statements. The City defines infrastructure as the basic physical assets that allow the City to function, which includes the street system, park and recreation lands and improvements system; storm water conveyance and drainage system, buildings combined with site amenities such as parking and landscaping areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. The City elected to use the Modified Approach as defined by GASB Statement No. 34 for infrastructure reporting of its streets, concrete and asphalt pavements. The City commissioned a physical assessment of the streets condition as of June 30, 2010. This condition assessment was performed in the fall of 2010 with the final report presented in March, 2011. A Pavement Condition Index (PCI) was assigned to each street segment. The index is expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned to segments of street that have the physical characteristics of a new street. 38 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 The following conditions were defined: Condition Rating Excellent 80-100 Very Good 70-79 Good 50-69 Poor 25-49 Very Poor 0-24 The City's policy relative to maintaining the street assets is to achieve an average rating of 70 for all street segments. This acceptable rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. For all other infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. An appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition. Original costs were developed in one of three ways: 1) historical records; 2) standard unit costs appropriate for the construction/acquisition date; or 3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, unrecovered cost method was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost. F. Interest Payable In the government -wide financial statements, interest payable of long -term debt is recognized as an incurred liability for governmental fund types. The City has not allocated the interest on long -term debt to departments. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long -term debt is recorded in the fund statements when payment is made. G. Claims Payable The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "incurred but not reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities. H. Compensated Absences In the government -wide financial statements, compensated absences are recorded as incurred and the related expenses and liabilities are reported. In the fund financial statements, compensated absences are recorded as expenditures in the years paid, as it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources, kZ CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 rather than currently available financial resources. Only the amounts which become due at June 30 are reported in the fund financial statements as a liability. I. Long- Term Obligations In the government -wide financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. J. Fund Balances In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This standard left unchanged the total amount reported as fund balance, but substantially altered the categories and terminology used to describe its components. The new categories and terminology focuses, not on financial resources available for appropriation, but on the extent to which the government is bound to honor constraints on the specific purpose for which the amounts in the fund can be spent. The components of fund balance are now categorized as follows: "non- spendable fund balance ", resources that are inherently non - spendable from the vantage point of the current period; "restricted fund balance ", resources that are subject to external enforceable legal restrictions; "committed fund balance ", resources whose use is constrained by limitations that the government imposes upon itself at its highest level of decision making and remain binding unless removed in the same manner; "assigned fund balance ", resources that reflects a government's intended use of resources, such intent would have to be established at either the highest level of decision making, by a body, or an official designated for that purpose; and "unassigned fund balance ", net resources in excess of what can properly be classified in one of the other four categories. Currently, the City's fund balance reserves fall into one of the four spendable categories; restricted, committed, assigned, or unassigned fund balance. The City maintains three restricted fund balances constrained by external legal restrictions that can be spent only for the stipulated purposes. These fund balances are: Special Assessments Fund Balance — collectively represents year -end fund balances of twenty - four landscape and/or lighting assessment districts which use is restricted to the individual district. • Environmental Services Fund Balance — represents funds collected from surcharges on garbage bills specifically for use as supplemental funding of Environmental Services program fees for household hazardous waste fees, storm drain, street sweeping, and other pollution mitigation expenses related to integrated waste programs and storm water management. These funds are used to supplement environmental expenditures by using $50,000 per year; however these reserve 40 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 funds were not transferred for use in FY 2011/12 due to additional revenue available for these programs. • Debt Service Fund Balance — represents funding collected for and use in the City's general obligation bond debt originally issued in 2001. The committed category, in which fund balance is constrained by limitations that the government imposes upon itself at its highest level of decision making and remain binding unless removed in the same manner, includes the following: Capital Projects Fund Balance — represents collective funding appropriated for use in capital improvement projects. Capital Improvement funding is assigned to one of the following program funds: Streets, Park & Trail, Facility, or Administration. Hillside Stability - funding set aside for use either in emergency repairs or high -cost and non- routine mitigation of hillside or landslide projects. In the assigned category, fund balance reflects an intended use as established by Council. This category includes the following reserves: Capital Project - represents General Fund funding set aside for capital projects but not yet committed to a specific improvement project. • Carryforward — represents either prior -year funds designated for one -time operational activities not yet completed by year -end, or to carryforward prior -year funding for specific activities as directed by Council. Carryover funds are appropriated for use in the following fiscal year. The Unassigned Fund Balance category represents funding which may be held for specific types of uses or stabilization purposes, but is not yet directed to be used for a specific purpose. • Operations — provides funds for working capital cash flow. Council policy set aside $2,000,000 on July 1, 1999, to be increased annually by an amount equal to the interest the City earned on the equivalent amount of cash and investments. As of June 30, 2012 this fund balance has grown to $2,914,426. This fund balance is not appropriated for use. • Economic Uncertainty - Council policy is to maintain $1,500,000 for use by Council direction in case of disasters, emergencies, and economic downturns. • Development Services — represents funds collected for development services to be used to supplement funding for zoning administration, inspection services, and development regulation programs during periods where expenditures exceed revenues. • Uncollected Deposits — represents funding to offset development applicant receivables for outstanding balances owed to the City. The balance is adjusted at year end based on outstanding deposit levels. 41 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 • Other Unassigned Fund Balance - represents funding not yet appropriated or assigned for use. Council policy is to maintain a minimum of $500,000 in unassigned funds as a buffer for unplanned expenditures or revenue shortfalls. Spending Order Policy — When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise. K. Net Assets In the government -wide financial statements, net assets are classified in the following categories: • Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. • Unrestricted Net Assets - This amount is all net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." L. Use of Restricted /Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the City's policy is to apply restricted net assets first. M. Property Tax and Special Assessments County tax assessments include secured and unsecured property taxes and special assessments. "Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the property being taxed. Revenue is recognized in the period for which the tax and assessment is levied. The County of Santa Clara levies, bills and collects property taxes for the City, the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1. Secured property tax is due in two installments on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1 and becomes delinquent on August 31. N. Use of Estimates The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. EAN CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 O. Subsequent Events Management has considered subsequent events through November 12, 2012, the date which the financial statements were available to be issued. P. New GASB Pronouncements GASB Statement No. 60 - In November, 2010, GASB issued Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements, which are a type of public - private or public - public partnership. This pronouncement is effective for periods beginning after December 15, 2011. The City does not believe there will be a significant financial statement effect related to this Statement. GASB Statement No. 61 – In November, 2010, GASB issued Statement No. 61, The Financial Reporting Entity: Omnibus —an amendment of GASB Statements No. 14 and No. 34. The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. The requirements of Statement No. 14, The Financial Reporting Entity, and the related financial reporting requirements of Statement No. 34, Basic Financial Statements —and Management's Discussion and Analysis —for State and Local Governments, were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those Statements. This pronouncement is effective for periods beginning after June 15, 2012. The City does not believe there will be a significant financial statement effect related to this Statement. GASB Statement No. 62 – In December, 2010, GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. The objective of this Statement is to incorporate into the GASB's authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: 1. Financial Accounting Standards Board (FASB) Statements and Interpretations 2. Accounting Principles Board Opinions 3. Accounting Research Bulletins of the American Institute of Certified Public Accountants' ( AICPA) Committee on Accounting Procedure. This pronouncement is effective for periods beginning after December 15, 2011. The City does not believe there will be a significant financial statement effect related to this Statement. Statement No. 63 - In June, 2011, GASB issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, The objective of this Statement is to improve financial reporting by providing guidance and standardizing the presentation of deferred outflows of resources and deferred inflows of resources and their effect on a government's net positions. This pronouncement is effective for financial statements for periods beginning after December 15, 2011. The City is in the process of determining the impact this statement will have on the financial statements. Statement No. 64 - In June, 2011, GASB issued Statement No. 64, Derivative Instruments: Application of Hedge Accounting Termination Provisions —an amendment of GASB Statement No. 53. The objective of this Statement is to enhance comparability and improve financial reporting by clarifying the 43 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 circumstances in which hedge accounting should continue when a swap counterparty or a swap counterparty's credit support provider is replaced. This pronouncement is effective for financial statements for periods beginning after June 15, 2011. The City has determined this Statement change will not have an effect on the financial statements. Statement No. 65 - In March, 2012, GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities. This Statement establishes accounting and financial reporting standards the reclassify as deferred outflows of resources and deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognized as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. The City is in the process of determining the impact this statement will have on the financial statements. Statement No. 66 - In March, 2012, GASB issued Statement No. 66, Technical Correction — 2012 — an amendment of GASB Statement No. 10 and No. 62. The objective of this Statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Government Fund Type Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. The City does not believe there will be a significant financial statement effect related to this Statement. Statement No. 67 - In June, 2012, GASB issued Statement No. 67, Financial Reporting for Pension Plans — amendment of GASB Statement No. 25. The objective of this Statement is to improve financial reporting by state and local government pension plans. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regards to providing decision - useful information, supporting assessments of accountability and inter - period equity, and creating additional transparency. The City is in the process of determining the impact this statement will have on the financial statements. Statement No. 68 - In June, 2012, GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local government employers about financial support for pensions that is provided by other entities. The City is in the process of determining the impact this statement will have on the financial statements. 44 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 2 - CASH AND INVESTMENTS The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated to the funds based on average month -end cash and investment balances in these funds. The City has the following cash and investments at June 30, 2012: Statement of Net Assets Governmental Activities Cash and investments $ 15,705,028 The City's Cash and Investments at June 30, 2012, in more detail: Cash and cash equivalents: Petty cash $ 1,450 Demand deposits 289,892 Total Cash and Cash Equivalents 291,342 Investments: Local Agency Investment Fund (LAIF) 15,413,686 Total Cash and Investments $ 15,705,028 A. Cash Deposits The carrying amounts of the City's cash deposits were $289,892 at June 30, 2012. Bank balances before reconciling items were $915,499 at that date due to deposits in transit and outstanding checks. The total amount was collateralized or insured with securities held by the pledging financial institutions. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest, and places the City ahead of general creditors of the institution. The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC). Demand deposits (non- interest bearing checking accounts) have unlimited insurance through the TAG Program. Other accounts are insured up to $250,000 per custodian within agency. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income from cash and investments with fiscal agents is credited directly to the related fund. 45 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 B. Investments Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized: • Securities of the U.S. Government or its agencies. • Certificates of Deposit (or Time Deposits) placed with commercial banks and/or savings and loan companies. • Negotiable Certificates of Deposit. • California Local Agency Investment Fund. • Investment -grade obligations of State, local governments or public authorities. • Money market mutual funds. • Passbook savings account and demand deposits. The City is in compliance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investments Pools which requires the City's investments be recorded at fair value instead of cost. Under GASB 31, the carrying value of investments are adjusted to reflect their fair value at each fiscal year -end, with the effects of these adjustments included in the carrying value of the investments. C. External lnvestment Pool The City's investments with LAIF at June 30, 2012, include a portion of the pool funds invested in Structured Notes and Asset - Backed Securities. These investments include the following: • Structured Notes - debt securities (other than asset - backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. • Asset - Backed Securities - the bulk of which are mortgage- backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIR website, located at http://www.treasurer.ca.gov/pmia-laif/ As of June 30, 2012, the City had $15,413,686 invested in LAIF. The LAIF fair value factor of 1.001219643 was used to calculate the fair value of the investments in LAIF. 46 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 D. Risk Disclosures Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment's maturity, the greater the sensitivity to changes in market interest rates. Although the City's investment policy allows for a broad range of investment instruments with varying terms of maturity, investments are limited to the Local Agency Investment Fund (LAIF) which is managed by the State Treasurer Office and overseen by the Pooled Money Investment Board, the State Treasurer investment committee, and a Local Agency Advisory Board. Included in LAIF's investment portfolio are U.S. Treasuries, Federal Agency obligations, time deposits, negotiable certificates of deposits, commercial paper, corporate bonds, and security loans. Funds are available for withdrawal on demand, and are recorded on an amortized cost basis. At June 30, 2012, these investments had a weighted average maturity of 247 days. The City had the following invested in LAIF: Investment Maturities in Years Fair Less Than Value One Year State of California - Local Agency Investment FLLnd (LAIF) S 15,413,686 $ 15,413,686 Credit Risk As of June 30, 2012, the City's investments in external investment pools are unrated. The City only invests in LAIF, therefore has no other policy relating to the credit risk of investments. Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City did not hold any securities through investment counterparties at the year ended June 30, 2012. 47 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 3 - FUND FINANCIAL STATEMENTS INTERFUND TRANSACTIONS Transfers WOW Transfers for the year ended June 30, 2012 were as follows: Transfer in General Fund Capital Improvement Fund Total Transfer out Capital Improvement Fund General Fund IT Equipment Replacement Amount $ 205,222 205,222 280,000 24,963 304,963 $ 510,185 The General Fund received monies from the Capital Improvement Funds for remaining balance on completed capital projects of $99,222; and from the Gas Tax fund for general administration of $106,000. The Capital Improvement Fund received monies from the General Fund from the adopted budget of $100,000 for annual facility improvement projects, $50,000 for the traffic safety project, $50,000 for the sidewalk repairs project, $50,000 for the storm drain upgrades project, and $10,000 for the CMO document imaging project. Additionally, $20,000 was transferred from the General Fund for the Village Fagade program. The IT Equipment Replacement fund transferred $24,963 to the Capital Improvement Fund for the network cabling project. 48 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 4 - CAPITAL ASSETS Capital assets activity for the year ended June 30, 2012, consisted of the following: Depreciation expense, including the amount related to the internal service funds, was charged in the following functions in the Statement of Activities: General Government $ 1,252,533 Primary Government 592,698 Community Services Balance Community Development - Balance 94,414 July 1, 2011 Additions Retirements Reclassifications June 30, 2012 Governmental activities: Capital assets, not being depreciated: Land and land improvements $ 13,135,756 $ 750,000 $ - $ 624,645 $ 14,510,401 Construction in progress 6,248,294 1,782,425 (19,785) (843,981) 7,166,953 Infrastructure: Street pavement system 49,155,619 - - 49,155,619 Total capital assets, not being depreciated 68,539,669 2,532,425 (19,785) (219,336) 70,832,973 Capital assets, being depreciated: Buildings and structures 23,462,738 - - 148,852 23,611,590 Machinery and equipment Governmental funds 1,773,286 12,487 (132,534) 45,484 1,698,723 Internal service funds 714,059 10,000 - - 724,059 Infrastructure: Bridges 1,563,654 - - - 1,563,654 Signs and lights 1,820,585 - - 1,820,585 Drainage system 40,035,953 - 25,000 40,060,953 Sidewalks 12,328,102 - - 12,328,102 Total capital assets, being depreciated 81,698,377 22,487 (132,534) 219,336 81,807,666 Accumulated depreciation: Buildings and structures (6,054,896) (586,863) - - (6,641,759) Machinery and equipment Governmental funds (1,233,493) (59,778) 132,534 - (1,160,737) Internal service funds (563,496) (94,414) - - (657,910) Infrastructure: Bridges (1,000,514) (26,590) - - (1,027,104) Signs and lights (860,670) (66,029) - - (926,699) Drainage system (13,128,791) (800,970) - - (13,929,761) Sidewalks (4,775,299) (324,694) - - (5,099,993) Total accumulated depreciation (27,617,159) (1,959,338) 132,534 - (29,443,963) Total capital assets, being depreciated, net 54,081,218 (1,936,851) - 219,336 52,363,703 Governmental activities capital assets, net $ 122,620,887 $ 595,574 _L __Q9,785) $ - $ 123,196,676 Depreciation expense, including the amount related to the internal service funds, was charged in the following functions in the Statement of Activities: General Government $ 1,252,533 Public Works 592,698 Community Services 19,693 Community Development - Internal Service Funds 94,414 Total Depreciation Expense $ 1,959,338 49 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government -Wide Statement of Net Assets. The City elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its pavement system. As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A more detailed discussion of the "Modified Approach" is presented in the Required Supplementary Information section of this report. All other capital assets including other infrastructure systems were reported using the Basic Approach whereby accumulated depreciation and depreciation expense have been recorded. NOTE 5 — LONG -TERM OBLIGATIONS A summary of the City's long -term obligations transactions for the year ended June 30, 2012, is presented below: Description General Obligation Bonds: 2001 Library Bonds 2011 Library Bonds Net original issue premium Compensated absences Total Balance July 1, 2011 Additions Retirements $12,605,000 $ - $ (12,605,000) - 11,995,000 - - 459,738 (21,892) 719,846 323,881 (397,514) $13,324,846 $ 12,778,619 $ (13,024,406) Classification Balance Due Within Due In More June 30, 2012 One Year Than One Year 11,995,000 455,000 11,540,000 437,846 21,892 415,954 646,213 404,988 241,225 $13,079,059 $ 881,880 $ 12,197,179 General Obligation 2001 Library Bonds - Original Issue $15,000,000 On May 1, 2001, the City issued General Obligation Bonds Series 2001 in the amount of $15,000,000. The proceeds of the bonds were used to improve, renovate, and expand the Saratoga Community Library. The bonds are payable from and secured by certain property taxes within the City. Interest on the bonds ranges from 5 percent to 6 percent and is payable on February 1 and August 1 of each year, commencing February 1, 2002. Principal is due annually beginning on August 1, 2002, in amounts ranging from $60,000 to $940,000. The bonds mature on August 1, 2031, and are subject to redemption prior to maturity. The bonds may be called for redemption at the option of the City at redemption prices from 101 percent beginning on or after August 1, 2010 and 100 percent of par on or after August 1, 2011. The option of recalling the bonds were exercised on July 14, 2011 and a current refunding was executed, replacing this bond issue with the General Obligation 2011 Library Bonds. General Obligation 2011 Library Bonds - Original Issue $11,995,000 On July 14, 2011, the City issued General Obligation Bonds Series 2011 in the amount of $11,995,000. The bonds were issued to fully refund the General Obligation 2001 Library Bonds. The bonds are payable from and secured by certain property taxes within the City. Interest on the bonds ranges from 2.0 percent to 4.0 percent and is payable on February 1 and August 1 of each year, commencing February 1, 2012. Principal is due annually beginning on August 1, 2013, in amounts ranging from $455,000 to $760,000, with a final payment on August 1, 2031 of $1,610,000. The bonds maturing on or before August 1, 2021 are not subject to redemption prior to their respective stated maturity dates. Bonds maturing on or after August 1, 2022 are subject to redemption prior to their respective stated maturity dates at the option of the city at the principal amount of the bonds called for redemption, together with interest accrued thereon to the date of redemption, without premium. 50 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 The bonds were competitively bid on June 29, 2011, with a final issue date of July 14, 2011. On the date of issue of the 2011 bonds, the proceeds were deposited with and held in trust by the Bank of New York Mellon Trust Company, N. A., the paying agent for the 2001 bonds. The amount deposited, together with other available moneys were sufficient to pay principal of and interest on the 2001 bonds maturing on August, 2011, and to redeem the remaining 2001 bonds in full. The cash flow of the General Obligation 2001 Library Bonds through final payment would have been $19,391,525, compared to the refunded General Obligation 2011 Library Bonds of $17,218,678, due to a lower stated interest rate. The economic gain, as determined by the PFM Group, is $1,500,577. At June 30, 2012, the outstanding balance of the bonds was $11,995,000. The annual debt service requirements on these bonds are as follows: Year Ended 2013 2014 2015 2016 2017 2018 -2022 2023 -2027 2028 -2032 Total Principal $ 455,000 485,000 495,000 500,000 475,000 2,620,000 3,160,000 Interest Total 412,485 403,085 393,285 383,335 371,210 1,591,275 1,049,750 3,805,000 391,043 $ 11,995,000 $ 4,995,468 Compensated Absences $ 867,485 888,085 888,285 883,335 846,210 4,211,275 4,209,750 4,196,043 $ 16,990,468 The City's liability for vested and unpaid compensated absences (accrued vacation and sick pay) has been accrued and amounts to $646,213 at June 30, 2012. The compensated absences liability will generally be liquidated through the General Fund. NOTE 6 - RISK MANAGEMENT The City participates in the two following public entity risk pools: ABAG Plan Corporation (ABAG PLAN) - covers general liability claims up to a limit of $5 million and purchases an additional $15 million of excess insurance coverage, for a total of $20 million per occurrence limit. The City has a deductible or uninsured liability of up to $25,000 per claim. Once the City's deductible is met, ABAG PLAN becomes responsible for payment of all claims up to the limit. During the fiscal year ended June 30, 2012, the City contributed $251,581 for current year coverage and received no refund of prior year excess contributions. ABAG Workers' Compensation Pool Insurance Authority (ABAG POOL) — covers workers' compensation coverage up to $250,000 and excess coverage provides an employer liability limit of $5 million per occurrence, and workers' compensation per occurrence limit to $100 million. The City has no deductible for these claims. During the fiscal year ended June 30, 2012, the City contributed $195,587 for current year coverage. The City's contribution equals the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year. 51 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions of insurance settlements that exceeded insurance coverage for the past three years. The workers' compensation and general liability claims payable of $21,247 reported at June 30, 2012, are based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the basic financial statements indicates that it is probable that a liability has incurred at the date of the basic financial statements and the amount of the loss can be reasonably estimated. Changes in the claims payable amounts were as follows: The General Fund has been used in the prior years to liquidate the liability for claims and judgments. Claims payable, beginning of year Fiscal year claims and changes in estimates Claims payments Claims payable, end of year Year Ended Year Ended June 30, 2012 June 30, 2011 $ 14,091 $ 54,601 21,247 14,091 (14,091) (54,601) $ 21,247 $ 14,091 Each risk pool is governed by a board consisting of representatives from member municipalities. The board controls the operations of each risk pool, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the Board. The following represents summary audited financial information of ABAG Plan Corporation and the ABAG Workers' Compensation Pool Insurance Authority for the fiscal year ended June 30, 2011 (most recent available): Total Assets Total Liabilities Net Assets Total Revenues Total Expenses Net Increase in Net Assets Plan Comp Shared Corporation Risk Pool $ 47,150,382 $ 3,725,493 20,617,172 624,353 $ 26,533,210 $ 3,101,140 $ 9,672,545 $ 580,664 14,935,442 331,806 $ (5,262,897) $ 248,858 Audited financial information for each risk pool may be obtained from ABAG at P.O. Box 2089, Oakland, California 94604 -2089. 52 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 7 - RETIREMENT PLANS Pension Plan Plan Description - The City contributes to the California Public Employees' Retirement System (Ca1PERS), a cost - sharing multiple- employer defined benefit plan. Ca1PERS provide retirement and disability benefits, annual cost -of- living adjustments, and death benefits to plan members and beneficiaries. Ca1PERS act as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of Ca1PERS' annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95811. Funding Policy — The City employer is required to contribute an actuarially determined rate of annual covered payroll for its miscellaneous employees (12.856 percent for fiscal year 2011/12). Active plan members are required by State statute to contribute 7 percent of their annual covered salary. In past years, the City employer contributed this required amount on behalf of City employees. As a result of labor negotiations during fiscal year 2011/12, employees began to contribute the 7 percent of annual salary. The City paid employee contribution of $69,643 for the year ended June 30, 2012 was contributed prior to the labor negotiation revision. Annual Pension Cost - For fiscal year 2011/12, the City's annual pension cost was $616,323. The required contribution was determined as part of the June 30, 2009, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 7.75 percent (7.75 %) investment rate of return (net of administrative expenses), (b) projected annual salary increases ranging from 3.25 percent to 14.45 percent for miscellaneous employees depending on age, service, and type of employment, and (c) 3.25 percent per year payroll growth adjustments. Both (a) and (b) included an inflation component of 3.00 percent. The actuarial value of Ca1PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a three - year period. Ca1PERS unfunded actuarial accrued liability (or surplus) is amortized as a level percentage of projected payroll on a closed basis. The amortization period at June 30, 2008, was 30 years for miscellaneous employees for prior and current service unfunded liability. THREE -YEAR ANNUAL PENSION COSTS TREND INFORMATION FOR CALPERS Required Supplementary Information APC Contributed 100% 100% 100% Net Pension Obligation In 2004, Ca1PERS established a risk pool for cities and other government entities that have less than 100 active members. Actuarial valuations are performed with other participants within the same risk pool. Stand alone information of the Schedule of the Funding Progress for the City is no longer available. 53 Annual Fiscal Pension Cost Year (APC) 2010 $ 564,855 2011 579,256 2012 616,323 Required Supplementary Information APC Contributed 100% 100% 100% Net Pension Obligation In 2004, Ca1PERS established a risk pool for cities and other government entities that have less than 100 active members. Actuarial valuations are performed with other participants within the same risk pool. Stand alone information of the Schedule of the Funding Progress for the City is no longer available. 53 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 8 - NET ASSETS A. Investment in Capital Assets, Net of Related Debt As of June 30, 2012, the investment in capital assets, net of related debt consisted of the following: Capital Assets, Net $ 123,196,676 2011 General Obligation Library Bonds (11,995,000) Investment in Capital Assets, Net of Related Debt $ 111,201,676 B. Restricted Net Assets As of June 30, 2012, the restricted net assets consisted of the following: Restricted For Environmental Special Debt Services Assessments Service Total Restricted Net Assets $ 513,182 $ 562,504 $ 862,415 $ 1,938,101 NOTE 9 - JOINT POWERS AGREEMENTS The City is a member of several Joint Power Agreements, as follows: The Santa Clara County Valley Transportation Authority (VTA) consists of various cities in the San Francisco Bay area. The Transportation Authority was formed in 1985, by a joint exercise of powers agreement between the County of Santa Clara and the cities of Santa Clara County for the purpose of financing highway capital improvements within the County to serve transportation needs. Financial statements may be obtained from the Traffic Authority at 1754 Technology Drive, Suite 224, San Jose, California 95110. The West Valley Solid Waste Management Joint Powers Authority consists of the west valley cities of Campbell, Los Gatos, Monte Sereno, and Saratoga. The JPA was formed to coordinate efforts in carrying out solid waste collection and disposal activities, and in meeting the mandates of A13939, the States' Integrated Waste Management Act. The Silicon Valley Regional Interoperability Authority (SVRIA) consists of Silicon Valley agencies formed to coordinate the design and implementation of an interoperable public safety communication system. The Santa Clara County Library System JPA consists of various member agencies as a policy making and governing body of the County's library system. These JPA's are governed by boards consisting of representatives from their members. The boards control the operations of each JPA, including selection of management and approval of operating budgets, independent of any influence by its members beyond their representation on the board. 54 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 NOTE 10 - EXCESS EXPENDITURES OVER APPROPRIATIONS There were no excess of expenditures over appropriations in individual funds during fiscal year 2011/12. NOTE 11- COMMITMENTS AND CONTINGENCIES A. Lawsuits The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize. B. Federal and State Grant Programs The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act Amendments of 1996 and applicable State requirements. For Federal programs, the City reached the level of qualifying cost during the current fiscal year so a single audit was required. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 55 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 C. Commitments The City had several outstanding contracts or planned construction projects as of June 30, 2012. These projects are evidenced by contractual commitments with contractors and include: Vendor Atkinson, Andelson, Loya, Ruud & Romo Central California Solar David J. Powers & Associates Duran & Venables, Inc. George Bianchi Construction Granite Rock Company Labor Consultants of CA Mark Thomas & Company REJ Electric Co. Sanchez Electric, Inc. Steve Benzing Architect Testing Engineers Tuff Shed, Inc. Vavrinek, Trine, Day & Co. Original commitment $ 20,000 228,808 135,195 29,718 46,506 345,880 8,125 11,070 30,513 23,500 3,500 6,000 9,840 43,350 $ 942,005 Commitment Remaining $ 9,999 113,808 75,786 29,718 11,301 345,880 5,313 2,016 8,913 11,750 1,925 5,200 9,840 26,475 $ 657,924 As of June 30, 2012, in the opinion of City management, there were no additional outstanding matters that would have a significant effect on the financial position of the funds of the City. 56 J SAR 1956 FOR% REQUIRED SUPPLEMENTARY INFORMATION 120 This page is intentionally blank 121 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2012 NOTE 1- BUDGETARY INFORMATION The following is the budget comparison schedules for General Fund. REVENUES: Property taxes Special assessments Sales taxes Other local taxes Licenses & permits Fines & forfeitures Intergovermental - state Intergovermental - other Franchise fees Use of money &property Other revenue Total revenues EXPENDITURES: Current: General and intergovernmental services Public safety Public works Community services Community development services Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCINGS OURCES (USES): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances FUND BALANCES: Beginning of year End of year Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 7,973,300 $ 7,973,300 $ 8,272,456 $ 299,156 5,750 5,750 7,490 1,740 1,025,000 1,025,000 1,100,489 75,489 565,000 565,000 683,383 118,383 986,665 986,665 1,184,099 197,434 307,550 307,550 233,708 (73,842) 265,000 285,140 232,505 (52,635) 33,000 33,000 42,343 9,343 1,695,000 1,695,000 1,852,390 157,390 515,302 515,302 552,672 37,370 1,743,281 2,011,187 2,069,096 57,909 15,114,848 15,402,894 16,230,631 827,737 3,257,349 3,313,349 2,924,958 388,391 4,326,360 4,326,360 4,310,113 16,247 4,410,350 4,415,350 4,318,432 96,918 1,340,872 1,340,872 1,269,497 71,375 2,057,417 2,057,517 1,887,796 169,721 15,392,348 15,453,448 14,710,796 742,652 (277,500) (50,554) 1,519,835 1,570,389 134,550 205,222 205,222 - (260,000) (280,000) (280,000) - (125,450) (74,778) (74,778) - $ (402,950) $ (125,332) 1,445,057 $ 1,570,389 7,484,064 $ 8,929,121 Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Operating and Capital Budgets assure the efficient and effective uses of the City's economic resources, as well as establishing that the highest priority objectives are accomplished. 57 122 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2012 The annual budgets are adopted for the period of July 1 to June 30, and prepared to accurately and openly communicate service and infrastructure priorities to the community, businesses, vendors, employees, and other public agencies. The Annual Operating Budget is developed on a program basis for all funds with fund level authority. It establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City's performance. The City adopts an annual budget for the capital projects as part of adopting the five -year Capital Improvement Plan. The annual capital budget is adopted on a project -by- project basis. The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: a. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating and capital budgets include proposed expenditures and the means of financing them. b. Public hearings are conducted to obtain taxpayer comments. c. The budgets are legally enacted through the passage of a resolution. d. For the Operating Budget, the City Manager may authorize transfers of budget amounts within a fund. However, any revisions that increase the total budgeted expenditures of any fund must be approved by the City Council. Expenditures may not legally exceed budgeted appropriations at the fund level without City Council approval. e. As Capital Projects are adopted on a project basis, the City Council must approve increases or decreases of budgeted amounts or changes in project scope. Upon project completion, immaterial amounts are transferred to ongoing maintenance projects within the capital program. If remaining project funds are material, the project balance is brought back to Council for approval to transfer. £ Formal budgetary integration in the form of legally adopted budgets is employed as a management control device for all funds. Budgets are adopted on a basis consistent with generally accepted accounting principles. Budgeted expenditures reported are as amended by supplemental appropriations of the City Council. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General, Special Revenue, Internal Service, and Capital funds. Unexpended and unencumbered appropriations automatically lapse at the end of the fiscal year. 58 123 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2012 NOTE 2 - MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure capital assets. The City defines infrastructure as the basic physical assets that allow the City to function and those resources utilized primarily by the public which provide future economic benefits for a minimum of two years. Infrastructure can be defined as assets that are immovable and of value only to the government. Major infrastructure includes the street system, park and recreation lands and improvements; storm water conveyance and drainage systems, and buildings combined with site amenities such as parking and landscaping areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be divided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems. The City has elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its Streets Pavement System. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements: • The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up -to -date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established condition assessment level. The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. The City commissioned a physical assessment of the streets conditions with the final report received March 30, 2011. The study assists the City by providing current inspection data used to evaluate current pavement condition. This helps to maintain a City - defined desirable level of pavement performance while optimizing the expenditure of limited fiscal resources. The entire pavement network within the City is composed of approximately 140 centerline miles of paved surfaces. The City's road system can be grouped by function class and includes 23.4 centerline miles of arterial, 23.5 centerline miles of collector, and 93.3 miles as residential. A visual survey of all pavement segments was conducted to assess the existing surface condition of each of the individual pavement segments. Upon completion of the study, a Pavement Condition Index (PCI) was calculated for each segment in the City's pavement network to reflect the overall pavement condition. Rating between 0 and 100, a PCI of 0 would correspond to a badly deteriorated pavement with virtually no remaining life. A PCI of 100 would correspond to a pavement with proper engineering design and construction at the beginning of its life cycle. The assessment study was conducted during November, 2010. 59 124 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2012 The following conditions were defined: Condition Excellent Rating 80-100 Very Good 70-79 Good 50-69 Poor 25-49 Very Poor 0-24 The City's policy is to achieve an average rating of 70 for all streets, which is a very good rating. This rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. As of June 30, 2012, the City's street system was rated at a PCI index of 76 on the average with the detail condition as follows: Percent of Condition Streets Excellent 8% Very Good 75% Good 14% Poor 3% Very Poor 0% The City expended $2,856,603 on street maintenance for the year ended June 30, 2012. These routine maintenance expenditures delayed deterioration. The budget required to maintain and improve the current level of overall condition through the year 2017 is a minimum of $1,000,000. Approximately $2,500,000 is the projected budget for fiscal year 2012/13. A schedule of estimated annual amount calculated to maintain and preserve its streets at the current level compared to actual expenditures for street maintenance for the last ten years is presented below: Fiscal Funded By Year Budget 2002 -03 $ 2,207,922 2003 -04 1,961,844 2004 -05 1,800,000 2005 -06 1,156,547 2006 -07 2,026,404 2007 -08 2,246,152 2008 -09 2,680,504 2009 -10 1,811,130 2010 -11 4,770,782 2011 -12 4,683,078 60 125 Funded By Actual Other Gas Tax Total PCI Expenditures Sources Fund Funded Index $ 1,553,674 $ 974,514 $ 579,160 $ 1,553,674 - 1,489,667 907,327 582,340 1,489,667 - 2,609,648 1,478,216 1,131,432 2,609,648 70 1,030,382 353,652 676,730 1,030,382 70 1,156,889 19,899 970,818 990,717 70 1,691,466 1,252,709 438,757 1,691,466 70 1,574,485 1,148,650 425,835 1,574,485 70 771,386 575,710 195,676 771,386 70 1,847,221 1,449,686 397,535 1,847,221 76 2,856,603 1,622,401 1,234,202 2,856,603 76 60 125 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2012 As of June 2012, approximately 17 percent of the City's streets were rated below the average standard of 70. The City will continue to rehabilitate these segments of the streets. Total deficiencies (deferred maintenance) identified in the Pavement Management System Report at the end of a five -year period (2013 -2017) amounted to approximately $11,000,000 for all streets and are expected to be rehabilitated with a minimum annual budget of $1,000,000. 61 126 This page is intentionally blank. 62 127 SUPPLEMENTARY INFORMATION This page is intentionally blank NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Lighting and Landscape Assessment District Funds — These funds account for revenues and expenditures associated with maintaining the City's 25 Landscape and Lighting districts which were approved by consent of property owners living along or within the boundaries of the Districts. Debt Service Fund Library Bond - Santa Clara County general obligation bond tax revenues are accumulated in this fund to pay annual principal and interest payments on the voter approved 2001 Library Improvement Bond. 63 CITY OF SARATOGA COMBINING BALANCE SHEETS NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 AS S El'S Cash and investments Receivables: Accounts Interest Total assets LIABILITIES AND FOND BALANCES Liabilities: Accounts payable Deferred revenue Total liabilities Fund Balances: Restricted: Special revenue funds Debt service Total fund balances Total liabilities and fund balances Special Landscaping Assessment Debt Service Library Total Other Governmental $ 597,987 $ 859,823 $ 1,457,810 826 2,378 3,204 476 540 1,016 $ 599,289 $ 862,741 $ 1,462,030 $ 36,785 $ 326 $ 37,111 36,785 326 37,111 562,504 - 562,504 - 862,415 862,415 562,504 862,415 1,424,919 $ 599,289 $ 862,741 $ 1,462,030 ., CITY OF SARATOGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2012 REVENUES: Property taxes Special assessment Use of money and property Total revenues EXPENDITURES: Current: General and ingov't services Public works Debt service: Principal Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING (USES): Refunded bond proceeds Payment for refunded bonds Net original issue premium Total other financing sources (uses) Net change in fund balances FUND BALANCES: Beginning of year End of year Special Debt 370,000 Revenue Service 550,820 Lighting and 1,140,558 Total Landscaping Other Assessment Library Governmental District Bond Funds $ 184,242 $ - $ 184,242 304,840 930,485 1,235,325 2,159 2,093 4,252 491,241 932,578 1,423,819 - 219,738 219,738 432,862 - 432,862 - 370,000 370,000 - 550,820 550,820 432,862 1,140,558 1,573,420 58,379 (207,980) (149,601) - 11,995,000 11,995,000 - (12,235,000) (12,235,000) - 459,738 459,738 - 219,738 219,738 58,379 11,758 70,137 504,125 850,657 1,354,782 $ 562,504 $ 862,415 $ 1,424,919 65 CITY OF SARATOGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL IMPROVEMENT FOR THE YEAR ENDED JUNE 30, 2012 66 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Licenses & permits $ 334,000 $ 334,000 $ 543,714 $ 209,714 Fines & forfeitures - - 300 300 Intergovermental - federal 5,725,139 5,849,893 1,915,187 (3,934,706) Intergovermental - state 1,269,201 1,148,484 1,495,452 346,968 Intergovermental - other 66,000 185,469 30,531 (154,938) Use of money and property 30,000 30,000 32,190 2,190 Other revenue 357,745 360,245 130,579 (229,666) Total revenues 7,782,085 7,908,091 4,147,953 (3,760,138) EXPENDITURES: Capital outlay 12,085,444 12,354,537 5,178,900 7,175,637 Total expenditures 12,085,444 12,354,537 5,178,900 7,175,637 REVENUES OVER (UNDER) EXPENDITURES (4,303,359) (4,446,446) (1,030,947) 3,415,499 OTHER FINANCINGS OURCES (USES): Transfers in 411,706 305,000 304,963 (37) Transfers out (106,000) (205,222) (205,222) - Total other financing sources (uses) 305,706 99,778 99,741 (37) Net change in fund balances $ (3,997,653) $ (4,346,668) (931,206) $ 3,415,462 FUND BALANCES: Beginning of year 4,475,411 End of year $ 3,544,205 66 CITY OF SARATOGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL LIGHTING & LANDSCAPING ASSESSMENT DISTRICT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2012 67 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes $ 176,100 $ 176,100 $ 184,242 $ 8,142 Special assessments 308,150 308,150 304,840 (3,310) Use of money and property 2,145 2,145 2,159 14 Total revenues 486,395 486,395 491,241 4,846 EXPEIVDrI'URES : Current: Public works 641,518 641,518 432,862 208,656 Total expenditures 641,518 641,518 432,862 208,656 REVENUES OVER (UNDER) EXPENDITURES (155,123) (155,123) 58,379 213,502 Net change in fund balances $ (155,123) $ (155,123) 58,379 $ 213,502 FUND BALANCES: Beginning of year 504,125 End of year $ 562,504 67 CITY OF SARATOGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL LIBRARY BOND DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2012 NOlL 1 (UNDER) EXPENDITURES (93,956) (93,956) (207,980) (114,024) OTHER FINANCINGSOURCES (USES): Refunded bond proceeds - - 11,995,000 11,995,000 Payment for refunded bonds - - (12,235,000) (12,235,000) Net original issue premium - - 459,738 459,738 Total other financing sources (uses) - 219,738 219,738 Net change in fund balances $ (93,956) $ (93,956) 11,758 $ 105,714 FUND BALANCES: Beginning of year 850,657 End of year $ 862,415 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Special assessments $ 950,000 $ 950,000 $ 930,485 $ (19,515) Use of money and property 3,600 3,600 2,093 (1,507) Total revenues 953,600 953,600 932,578 (21,022) EXPE D1TURES : Debt service: General and ingov't services - - 219,738 (219,738) Principal 370,000 370,000 370,000 - hiterest and fiscal charges 677,556 677,556 550,820 126,736 Total expenditures 1,047,556 1,047,556 1,140,558 (93,002) NOlL 1 (UNDER) EXPENDITURES (93,956) (93,956) (207,980) (114,024) OTHER FINANCINGSOURCES (USES): Refunded bond proceeds - - 11,995,000 11,995,000 Payment for refunded bonds - - (12,235,000) (12,235,000) Net original issue premium - - 459,738 459,738 Total other financing sources (uses) - 219,738 219,738 Net change in fund balances $ (93,956) $ (93,956) 11,758 $ 105,714 FUND BALANCES: Beginning of year 850,657 End of year $ 862,415 INTERNAL SERVICE FUNDS Liability /Risk Management Insurance Fund — Accounts for insurance premiums, self - insurance portion of claims, and administrative cost associated with settling claims. Charges made to operating departments are based on liability risk and claim occurrence history. Worker's Compensation Self - insurance Fund — Accounts for insurance premiums, self insured portion of claims, and administrative costs associated with settling claims. Charges made to operating departments are based on liability risk and claim occurrence history. Office Stores Fund - Photocopy equipment, postage and bulk mail meter expenses are controlled at one source point and expended to the departments as goods or services are utilized. Information Technology Services Fund — Supports the delivery of technology based services and infrastructure, including desktop support, network systems, technology upgrades and initiatives, community systems, and associated information technology equipment. Vehicle & Equipment Maintenance Fund — Accounts for the cost of operating and maintaining automotive equipment used for service operations in various City departments. Building Maintenance Fund — Accounts for operating costs associated with building maintenance. Expenses include custodial supplies and services, maintenance and repair, utilities, and staffing costs. Vehicle & Equipment Replacement Fund — Established to accumulate funding for the replacement of vehicles and equipment. Replacement costs are charged to program over the asset's life span, reflective of usage. Information Technology Equipment Replacement Fund — Established to accumulate funding for the replacement of information technology equipment. Replacement costs are charged to departments over the asset's lifespan, reflective of usage. .• CITY OF SARATOGA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET ASSETS JUNE 30, 2012 70 Liability / Risk Workers' Office Management Compensation Stores ASSETS Current assets: Cash and investments $ 126,609 $ 232,580 $ 14,851 Accounts receivable 30,474 - - Total current assets 157,083 232,580 14,851 Noncurrent assets: Capital assets: Machinery and equipment - - - Less: accumulated depreciation - - - Total capital assets (net of accumulated depreciation) - - - Total assets 157,083 232,580 14,851 LUBILHIFS Liabilities: Current assets: Accounts payable 286 445 3,631 Accrued payroll 793 169 - Claims payable 21,247 - - Total current liabilities 22,326 614 3,631 NET AS S ETS Investment in capital assets - - - Unrestricted 134,757 231,966 11,220 Total net assets $ 134,757 $ 231,966 $ 11,220 70 Information Vehicle Vehicle Technology Technology and Equipment Building and Equipment Equipment Services Maintenance Maintenance Replacement Replacement Total $ 268,602 $ 33,678 $ 242,778 $ 437,089 $ 160,312 $ 1,516,499 - - - - - 30,474 268,602 33,678 242,778 437,089 160,312 1,546,973 - - 633,819 90,240 724,059 (567,670) (90,240) (657,910) - - - 66,149 - 66,149 268,602 33,678 242,778 503,238 160,312 1,613,122 7,807 9,395 34,671 - 3,553 59,788 4,094 1,252 7,181 - - 13,489 - - - - - 21,247 11,901 10,647 41,852 - 3,553 94,524 - - - 66,149 - 66,149 256,701 23,031 200,926 437,089 156,759 1,452,449 $ 256,701 $ 23,031 $ 200,926 $ 503,238 $ 156,759 $ 1,518,598 71 CITY OF SARATOGA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS FOR THE YEAR ENDED JUNE 30, 2012 Operating revenues: Charges for services Other operating revenues Total operating revenues Operating expenses: Cost of services Administration Depreciation Total operating expenses Operating income Transfers out Change in net assets Total net assets - beginning Total net assets - ending Liability / Risk Workers' Management Compensation Office L"-- -- $ 300,000 $ 215,000 $ 40,000 52,454 4,287 10,625 352,454 219,287 50,625 352,603 211,425 55,236 -)D1,oU.j L11,4LD JJ,L�O (149) 7,862 (4,611) (149) 7,862 (4,611) 134,906 224,104 15,831 $ 134,757 $ 231,966 $ 11,220 72 Information Vehicle Vehicle Technology Technology and Equipment Building and Equipment Equipment Services Maintenance Maintenance Replacement Replacement Total $ 400,000 $ 200,000 $ 725,000 $ 100,000 $ 50,000 $ 2,030,000 - - - 15,716 - 83,082 400,000 200,000 725,000 115,716 50,000 2,113,082 - 219,786 732,592 - 53,845 1,006,223 374,362 - - - - 993,626 - - - 85,390 9,024 94,414 374,362 219,786 732,592 85,390 62,869 2,094,263 25,638 (19,786) (7,592) 30,326 (12,869) 18,819 - - - - (24,963) (24,963) 25,638 (19,786) (7,592) 30,326 (37,832) (6,144) 231,063 42,817 208,518 472,912 194,591 1,524,742 $ 256,701 $ 23,031 $ 200,926 $ 503,238 $ 156,759 $ 1,518,598 73 CITY OF SARATOGA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2012 Cash flows from operating activities: Receipts from customers and users Payments to suppliers Payments to employees Net cash provided by operating activities Cash flows from noncapital financing activities: Transfers out Net cash used in nonoperating activities Cash flows from capital activities: Acquisition of capital assets Net cash used for acquisition of capital assets Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, ending of year Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Change in operating assets and liabilities: ( Inecrease) in accounts receivables (Decrease) increase in accounts payable Increase in claims payable (Decrease) increase in accured payroll Net cash provided (used) by operating activities 74 Liability / Risk Workers' Office Management Compensation Stores $ 321,980 $ 219,287 $ 50,625 (301,527) (200,944) (57,474) (43,547) (10,502) - (23,094) 7,841 (6,849) (GJ,Vy4) /,641 (o,64y) 149,703 224,739 21,700 $ 126,609 $ 232,580 $ 14,851 $ (149) $ 7,862 $ (4,611) (30,474) - - 286 86 (2,238) 7,156 - - 87 (107) - $ (23,094) $ 7,841 $ (6,849) $ 25,638 $ (19,786) $ (7,592) $ 30,326 $ (12,869) $ 18,819 85,390 9,024 94,414 (30,474) (4,474) 689 9,830 (1,579) 3,553 6,153 - - - - - 7,156 514 (284) (254) - - (44) $ 21,678 $ (19,381) $ 1,984 $ 114,137 $ (292) $ 96,024 75 Information Information Vehicle Vehicle Technology Technology and Equipment Building and Equipment Equipment Services Maintenance Maintenance Replacement Replacement Total $ 400,000 $ 200,000 $ 725,000 $ 115,716 $ 50,000 $ 2,082,608 (172,744) (144,408) (281,199) (1,579) (50,292) (1,210,167) (205,578) (74,973) (441,817) - - (776,417) 21,678 (19,381) 1,984 114,137 (292) 96,024 - - - - (24,963) (24,963) - - - - (24,963) (24,963) - - - (10,000) - (10,000) - - - (10,000) - (10,000) 21,678 (19,381) 1,984 104,137 (25,255) 61,061 246,924 53,059 240,794 332,952 185,567 1,455,438 $ 268,602 $ 33,678 $ 242,778 $ 437,089 $ 160,312 $ 1,516,499 $ 25,638 $ (19,786) $ (7,592) $ 30,326 $ (12,869) $ 18,819 85,390 9,024 94,414 (30,474) (4,474) 689 9,830 (1,579) 3,553 6,153 - - - - - 7,156 514 (284) (254) - - (44) $ 21,678 $ (19,381) $ 1,984 $ 114,137 $ (292) $ 96,024 75 This page is intentionally blank 76 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 77 This page is intentionally blank 78 CITY OF SARATOGA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS COMPARATIVE SCHEDULE BY SOURCE JUNE 30, 2012 AND 2011 1 This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service funds are excluded fromthe above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 79 2012 2011 Governmental Funds Capital Assets: Land and land improvements $ 14,510,401 $ 13,135,756 Buildings and structures 23,611,590 23,462,738 Machinery and equipment 1,698,723 1,773,286 Infrastructure 104,928,913 104,903,913 Construction in progress 7,166,953 6,248,294 Total Governmental Funds Capital Assets 151,916,580 149,523,987 Accumulated depreciation (28,786,053) (27,053,663) Total Governmental Funds Capital Assets, Net $ 123,130,527 $ 122,470,324 Investments in Governmental Funds Capital Assets by Source: General Fund $ 115,440,255 $ 115,548,433 Special revenue funds 960,972 974,487 Capital projects funds 34,668,005 32,903,719 Donations 847,348 97,348 Accumulated depreciation (28,786,053) (27,053,663) Total Governmental Funds Capital Assets $ 123,130,527 $ 122,470,324 1 This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service funds are excluded fromthe above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 79 CITY OF SARATOGA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY' JUNE 30, 2012 This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service funds are excluded form the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. :1 Land Buildings and Land and Improvements Structures Function and Activity General and intergovernmental services: Management services $ - $ 564,632 Administrative services - 167,585 Intergovernmental services 118,184 3,138,641 Total General and Intergovernmental Services: 118,184 3,870,858 Public safety: Police services - - Code enforcement - - Total Public Safety: - - Public works: Streets and sidewalks 835,154 30,628 Parks /open space 2,637,061 2,679,107 Total Public Works: 3,472,215 2,709,735 Community services 9,177,538 2,716,098 Community development services 1,742,464 14,314,899 Total Governmental Funds Capital Assets 14,510,401 23,611,590 Accumulated depreciation - (6,641,759) Total Governmental Funds Capital Assets, Net $ 14,510,401 $ 16,969,831 This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service funds are excluded form the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. :1 Machinery Construction and in Equipment Infrastructure Progress Total $ 553,507 $ - $ 216,994 $ 1,335,133 140,332 - - 307,917 22,225 - - 3,279,050 716,064 - 216,994 4,922,100 29,459 - - 29,459 7,548 - - 7,548 37,007 - - 37,007 437,835 104,845,895 3,334,308 109,483,820 222,596 - 107,580 5,646,344 660,431 104,845,895 3,441,888 115,130,164 268,589 83,017 3,460,815 15,706,057 16,632 - 47,256 16,121,251 1,698,723 104,928,912 7,166,953 151,916,579 (1,160,737) (20,983,556) - (28,786,052) $ 537,986 $ 83,945,356 $ 7,166,953 $ 123,130,527 CITY OF SARATOGA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE OF CHANGE BY FUNCTION AND ACTIVITY JUNE 30, 2012 Governmental Governmental Funds Capital Funds Capital Assets Assets July 1, 2011 Additions Deletions June 30, 2012 Function and Activity General and intergovernmental services Management services $ 1,141,732 $ 193,401 $ - $ 1,335,133 Administrative services 297,075 10,842 - 307,917 Intergovernmental services 3,304,384 - (25,334) 3,279,050 Total General and Intergovernmental Services: 4,743,191 204,243 (25,334) 4,922,100 Public safety: Police services 27,813 1,646 - 29,459 Code enforcement 7,548 - - 7,548 Total Public Safety: 35,361 1,646 - 37,007 Public works: Streets and sidewalks Parks /open space Total Public Works: Community services Community development services Total Governmental Funds Capital Assets Accumulated depreciation Total Governmental Funds Capital Assets, Net 109,218,352 311,265 (45,797) 109,483,820 5,606,522 87,709 (47,887) 5,646,344 114,824,874 398,974 (93,684) 115,130,164 13,790,713 1,915,344 - 15,706,057 16,129,847 4,920 (13,516) 16,121,251 149,523,986 2,525,127 (132,534) 151,916,579 (27,053,662) (1,864,924) 132,534 (28,786,052) $ 122,470,324 $ 660,203 $ - $ 123,130,527 1 This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service funds are excluded formthe above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. STATISTICAL SECTION 150 This page is intentionally blank This part of the City of Saratoga's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time. 84 -89 Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source; property tax. 90 -99 Debt Capacity These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. 100 -106 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. 107 -108 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 110 -115 The City of Saratoga implemented GASB Statement No. 34 in fiscal year 2001/02; schedules presenting government -wide information include information beginning in that year. The City of Saratoga implemented GASB Statement No. 44 in fiscal year 2007/08; newly required schedules presenting information in the Statistical Section include the earliest available information. 83 CITY OF SARATOGA NET ASSETS BY COMPONENT LAST EIGHT YEARS (ACCRUAL BASIS OF ACCOUNTING) Primary government Governmental activities Investment in capital assets, net of related debt Restricted Unrestricted Total primary government $130,000 $125,000 $120,000 $115,000. $110,000 $105,000 $100,000 $95,000 Source: CAFR (amounts expressed in thousands) Fiscal Year 2005 2006 2007 2008 $ 105,784 $ 107,100 $ 108,102 $ 109,818 6,328 5,370 5,928 5,940 6,789 9,955 8,593 9,710 $ 118,901 $ 122,425 $ 122,623 $ 125,468 Net Assets by Component 2005 2006 2007 2008 2009 2010 2011 2012 Investment in capital assets, net of related debt Restricted Unrestricted 84 2009 2010 2011 2012 $ 108,818 $ 108,966 $ 110,016 $ 111,201 5,281 5,519 5,830 1,938 8,759 8,533 7,964 12,248 $ 122,858 $ 123,018 $ 123,810 $ 125,387 85 CITY OF SARATOGA CHANGES IN NET ASSETS LAST EIGHT YEARS (ACCRUAL BASIS OF ACCOUNTING) (amounts expressed in thousands) Expenses: Governmental activities: General and intergovernmental services Public safety Public works Community services Community development services Interest on long -term debt (unallocated) Total governmental activities expenses Fiscal Year 2005 2006 2007 2008 $ 4,160 $ 3,473 $ 4,532 $ 6,293 3,736 3,427 3,844 4,166 3,829 4,752 6,425 5,325 1,929 1,395 1,437 1,286 2,349 2,226 1,993 2,032 760 754 768 714 16,763 16,027 18,999 19,816 Program revenues: 1,787 - Charges for services: 528 1,705 General and intergovernmental services - 31 Public safety 141 122 Public works 1,988 1,890 Community services 757 1,008 Community development services 1,890 2,665 Operating grants and contributions 1,218 1,549 Capital grants and contributions 865 1,568 Total governmental activates program revenu 6,859 8,833 Net (expense) revenue and change in net ass( (9,904) (7,194) General revenue and other changes in net asset Taxes: Property taxes Sales taxes Local taxes Franchise taxes Motor vehicle in -lieu Total Taxes Intergovernmental Investment earnings Other revenues Total general revenues 452 1,787 - 411 528 1,705 604 911 1,328 2,110 2,155 151 1,282 1,715 6.349 8.790 (12,65U) (11,U26) 4,841 5,652 5,772 8,099 1,011 988 995 1,058 1,143 1,288 1,099 694 995 1,040 1,187 1,625 420 718 177 149 8,410 9,686 9,230 11,625 - - 673 841 283 709 2,813 1,057 193 323 132 348 8.886 10.718 12.848 13.871 Change in net assets (1,um) 3,524 198 2,2845 Net assets - beginning of year 119,919 118,901 122,425 122,623 Net assets - end of year $ 118,901 $ 122,425 $ 122,623 $ 125,468 Source: CAFR :. 2009 2010 2011 2012 $ 5,595 $ 3,729 $ 4,368 $ 3,486 4,211 4,339 4,457 4,300 7,643 6,535 6,645 9,121 1,634 1,711 1,846 1,996 2,000 1,751 1,839 1,553 133 125 171 140 520 425 561 694 2,379 2,535 2,771 4,886 935 917 1,020 1,640 1,802 1,586 1,734 1,922 228 275 401 - 339 674 1,221 - 6,336 6,537 7,879 9,282 (15,444) (12,205) (11,932) (11,627) 8,336 8,371 8,199 8,457 1,043 955 991 1,101 663 560 632 683 1,657 1,664 1,821 1,852 116 101 146 16 11,815 11,651 11,789 12,109 474 522 773 910 397 101 65 67 148 91 97 118 12,834 12,365 12,724 13,204 (2,610) 160 792 1,577 125,468 122,858 123,018 123,810 $ 122,858 $ 123,018 $ 123,810 $ 125,387 87 CITY OF SARATOGA FUND BALANCE OF GOVERNMENTAL FUNDS LAST EIGHT YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (amounts expressed in thousands) General fund: Restricted Committed Assigned Unassigned Total general fund All other governmental funds: Restricted Special revenue funds Debt service Committed Capital project funds Total all other governmental funds $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Fiscal Year 2005 2006 2007 2008 $ 899 $ 910 $ 711 $ 679 75 615 831 1,258 6,002 8,854 7,619 8,459 $ 6,976 $ 10,379 $ 9,161 $ 10,396 $ 202 $ 919 $ 844 $ 318 856 865 746 854 5,321 3,586 4,338 4,768 $ 6,379 $ 5,370 $ 5,928 $ 5,940 Fund Balances of Governmental Funds General - General - General - General - Debt Service Special Capital Restricted Committed Assigned Unassigned Revenue Projects ■ 2005 ■ 200 6 2007 ■ 2008 ■ 2009 ■ 2010 2011 2012 Source: CAFR Information prior to fiscal year 2011 have been updated to conform with GASB 54 requirements 88 CITY OF SARATOGA FUND BALANCE OF GOVERNMENTAL FUNDS LAST EIGHT YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2009 2010 2011 2012 $ 613 $ 563 $ 513 $ 513 550 300 500 600 322 196 667 3,161 $ 484 $ 569 $ 504 $ 563 931 893 851 862 3,866 4,057 4,475 3,544 $ 5,281 $ 5,519 $ 5,830 $ 4,969 89 CITY OF SARATOGA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST EIGHT YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Tax Revenues by Source Source: CAFR Property Special Sales taxes Local taxes Motor vehicle Franchise taxes assessments in -lieu taxes 90 2005 ■ 2006 0 2007 ■ 2008 ■ 2009 2010 2011 2012 (amounts expressed in thousands) Fiscal Year 2005 2006 2007 2008 Tax revenues: Property taxes $ 4,841 $ 5,652 $ 5,772 $ 8,099 Special assessments 1,476 1,369 271 1,392 Sales taxes 1,011 988 995 1,058 Local taxes 1,143 1,288 1,099 694 Franchise taxes 995 1,040 1,187 1,625 Motor vehicle in -lieu 420 718 177 149 Total tax revenues $ 9,886 $ 11,055 $ 9,501 $ 13,017 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Tax Revenues by Source Source: CAFR Property Special Sales taxes Local taxes Motor vehicle Franchise taxes assessments in -lieu taxes 90 2005 ■ 2006 0 2007 ■ 2008 ■ 2009 2010 2011 2012 2009 2010 2011 2012 $ 8,336 $ 8,371 $ 8,199 $ 8,457 1,368 1,247 1,255 1,243 1,043 955 991 1,101 663 560 632 683 1,657 1,664 1,821 1,852 116 101 146 16 $ 13,183 $ 12,898 $ 13,044 $ 13,352 IF CITY OF SARATOGA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST EIGHT YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (amounts expressed in thousands) Revenues: Property taxes Special assessments Sales taxes Other local taxes Licensed and permits Fines and forfeitures Intergovernmental - federal Intergovernmental - state Intergovernmental - other Franchise fees Use of money any property Other revenues Current services charges Total tax revenues Expe nditure s: Current: General and intergovernmental services Public safety Public works Community services Community development services Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess of revenues Fiscal Year 2nn5 ?nnr, ?nn7 MOR $ 4,893 $ 5,652 $ 4,758 $ 7,877 1,411 1,370 1,285 1,566 1,011 987 995 1,058 851 1,288 1,126 773 100 79 1,340 1,671 162 259 396 344 90 - - - 1,375 2,660 3,631 1,641 671 976 629 777 1,294 1,041 1,187 1,622 664 752 2,813 924 153 1,719 151 326 3,093 2,715 900 4,184 15,768 19,498 19,211 22,763 3,238 3,346 3,806 4,083 3,731 3,423 3,824 4,166 2,599 3,501 5,714 4,717 1,875 1,210 1,381 1,262 1,990 1,847 1,962 2,026 1,777 2,908 2,130 4,246 255 270 280 295 766 760 774 721 16,231 17,265 19,871 21,515 (463) 2,233 (660) 1,247 Other financing sources (uses): Refunded bond proceeds - - - - Payment for refunded bonds - - - Net original issue premium - - - - Transfers in 2,492 499 3,422 2,241 Transfers out (2,492) (499) (3,422) (2,241) Total other financing sources (uses) - - - - Net change in fund balances $ (463) $ 2,233 $ (660) $ 1,247 Debt as a percentage of noncapital expenditures 7.06% 7.17% 5.94% 5.62% Source: CAFR 92 2009 2010 $ 8,335 $ 8,371 1,368 1,247 1,043 954 663 560 1,460 1,489 360 359 - 430 1,283 1,258 290 258 1,657 1,664 794 595 1,966 1,794 19,219 18,979 2011 2012 $ 8,199 $ 8,457 1,255 1,243 991 1,101 632 683 1,950 1,728 285 234 1,033 1,915 1,480 1,728 337 73 1,821 1,852 550 589 2,169 2,199 3,330 3,102 3,524 3,145 4,206 4,349 4,467 4,310 4,700 4,730 4,717 4,751 1,424 1,223 1,322 1,269 2,450 2,111 2,193 1,888 4,060 2,584 3,704 5,179 310 330 350 370 705 685 665 551 21,185 19,114 20,942 21,463 (1,966) (135) (240) 339 - - 11,995 (12,235) - - - 460 2,043 1,172 1,725 510 (2,043) (1,017) (1,700) (485) 4.89% 5.80% 5.56% 5.01% 93 CITY OF SARATOGA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST EIGHT YEARS Campbell School District (Property Tax Rates per $100 of Assessed Value) 0.0512 0.0508 0.0475 County Bond 2008 Hospital Fiscal Year 0.0000 0.0000 2005 2006 2007 2008 General 1.0000 1.0000 1.0000 1.0000 County Retirement Levy 0.0388 0.0388 0.0388 0.0388 County Library 0.0024 0.0024 0.0024 0.0024 City of Saratoga 0.0148 0.0117 0.0096 0.0113 0.0289 1.0560 1.0529 1.0508 1.0525 Campbell School District 0.0529 0.0512 0.0508 0.0475 County Bond 2008 Hospital 0.0000 0.0000 0.0000 0.0000 Campbell Elementary 2002 0.0000 0.0000 0.0000 0.0000 Campbell Elementary 2010 0.0000 0.0000 0.0000 0.0000 Campbell Union High 1999 0.0198 0.0224 0.0198 0.0285 Campbell Union High 2006 0.0000 0.0000 0.0000 0.0000 Cupertino Elementary School District 0.0360 0.0350 0.0289 0.0337 Moreland Elementary School District 0.0612 0.0561 0.0556 0.0569 Saratoga School District 0.0361 0.0356 0.0351 0.0363 Campbell Union High School District 0.0197 0.0224 0.0198 0.0285 Fremont Union High School District 0.0268 0.0260 0.0243 0.0241 Los Gatos - Saratoga Joint Union High School District 0.0409 0.0371 0.0651 0.0345 Foothill DeAnza Community College District 0.0129 0.0119 0.0346 0.0113 West Valley - Mission Community College District 0.0000 0.0140 0.0126 0.0118 Saratoga Fire District 0.0017 0.0052 0.0049 0.0053 Santa Clara Valley Water District - State Water Project 0.0086 0.0069 0.0070 0.0067 Santa Clara Valley Water District - Zone W -1 0.0006 0.0009 0.0002 0.0040 0.3172 0.3247 0.3587 0.3291 Total Tax Rate Source: California Municipal Statistics, Inc. 94 1.3732 1.3776 1.4095 1.3816 2009 2010 2011 2012 1.0000 1.0000 1.0000 1.0000 0.0388 0.0388 0.0388 0.0388 0.0024 0.0024 0.0024 0.0024 0.0524 0.0285 0.0249 0.0283 0.0000 0.0122 0.0095 0.0047 0.0000 0.0267 0.0298 0.0266 0.0000 0.0000 0.0005 0.0003 0.0299 0.0183 0.0196 0.0186 0.0000 0.0131 0.0131 0.0156 0.0306 0.0000 0.0000 0.0000 0.0565 0.0000 0.0000 0.0000 0.0363 0.0000 0.0000 0.0000 0.0299 0.0000 0.0000 0.0000 0.0339 0.0000 0.0000 0.0000 0.0330 0.0000 0.0000 0.0000 0.0123 0.0000 0.0000 0.0000 0.0032 0.0140 0.0139 0.0137 0.0053 0.0000 0.0000 0.0000 0.0059 0.0071 0.0070 0.0063 0.0002 0.0300 0.0002 0.0001 0.3294 0.1499 0.1185 0.1142 95 CITY OF SARATOGA ASSESSED VALUE OF TAXABLE PROPERTY LAST EIGHT YEARS $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Total Assessed Property 2005 2006 2007 2008 2009 2010 2011 2012 Source: Santa Clara County Assessor data, MuniServices, LLC 96 ■ Unsecured ■ Other ■ Industrial ■ Commercial ■ Residential (amounts expressed in thousands) Fiscal Year Total Ended Residential Commercial Industrial Other Unsecured Assessed June 30 Property Property Property Property Property Property 2005 $ 7,114,095 $ 166,071 $ 8,746 $ 138,912 $ 42,965 $ 7,470,789 2006 7,883,965 177,149 8,921 161,496 46,874 8,278,405 2007 8,467,894 187,142 9,099 192,470 39,764 8,896,369 2008 9,025,628 208,369 9,281 210,269 35,775 9,489,322 2009 9,605,309 213,951 9,467 223,190 43,933 10,095,850 2010 9,724,687 120,769 9,656 327,898 58,210 10,241,220 2011 9,639,782 107,269 9,633 323,881 57,172 10,137,737 2012 9,834,082 111,232 9,706 323,563 55,535 10,334,118 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Total Assessed Property 2005 2006 2007 2008 2009 2010 2011 2012 Source: Santa Clara County Assessor data, MuniServices, LLC 96 ■ Unsecured ■ Other ■ Industrial ■ Commercial ■ Residential 97 Total Less: Total Taxable Direct Tax Exempt Assessed Tax Real Property Value Rate $ (76,932) $ 7,393,857 1.0560 (133,951) 8,144,454 1.0529 (140,859) 8,755,510 1.0508 (159,369) 9,329,953 1.0525 (161,488) 9,934,362 1.0516 (230,127) 10,011,093 1.0506 (230,477) 9,907,260 1.0506 (230,868) 10,103,250 1.0500 97 CITY OF SARATOGA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND TEN YEARS AGO JUNE 30, 2012 Odd Fellows Home of California Saratoga Office Center Partners, LLC Navico Incorporated Michael T Labarbera David House Howell McNeil Devel LLC Vincent R & Susan Borelli David J Morrison Trustee Top Ten Total Assessed Value $ 153,579 City Total Assessed Value $ 10,103,250 Source: Santa Clara County Assessor data, MuniServices, LLC 98 2002 % of Total Taxable Taxable Assessed Assessed Value Rank Value 14,002 (amounts expressed in thousands) 11.82% 11,730 2012 _ 8,209 7 6.93% % of Total 6 Taxable 8,181 Taxable 6.91% Assessed 9 Assessed Taxpayer Value Rank Value Cupertino Village Associates, LLC $ 35,069 1 _ 22.83% John I. and Michelle Keller 20,459 2 13.32% Quito Village Group, LLC 19,143 3 12.46% San Jose Water Works 16,593 4 10.80% $ Gregpenn Properties, LLC 12,800 5 8.33% John M. & Abby J. Sobrato 12,299 6 8.01% Argonaut Associates, LLV 10,564 7 6.88% Public Storage Inc. 9,466 8 6.16% Ashok Krishnamurthi 8,880 9 5.78% Terri E Morrison 8,306 10 5.41% Odd Fellows Home of California Saratoga Office Center Partners, LLC Navico Incorporated Michael T Labarbera David House Howell McNeil Devel LLC Vincent R & Susan Borelli David J Morrison Trustee Top Ten Total Assessed Value $ 153,579 City Total Assessed Value $ 10,103,250 Source: Santa Clara County Assessor data, MuniServices, LLC 98 2002 % of Total Taxable Taxable Assessed Assessed Value Rank Value 14,002 2 11.82% 11,730 5 9.90% 8,209 7 6.93% 28,000 1 0.26% 12,650 3 10.68% 12,648 4 10.68% 8,426 6 7.11% 8,181 8 6.91% 8,160 9 6.89% 6,426 10 5.43% CITY OF SARATOGA PROPERTY TAX LEVIES AND COLLECTIONS LAST EIGHT YEARS Fiscal Year Total Tax Collected within the Collections in Ended Levy for Fiscal Year of the Levy Subsequent Total Collections to Date June 30 Fiscal Year Amount Percentage Years Amount Percentage 2005 $ 4,972,875 $ 4,972,875 100.0% $ - $ 4,972,875 100.0% 2006 5,243,038 5,243,038 100.0% - 5,243,038 100.0% 2007 6,032,558 6,032,558 100.0% - 6,032,558 100.0% 2008 8,108,364 8,108,364 100.0% - 8,108,364 100.0% 2009 8,332,184 8,332,184 100.0% - 8,332,184 100.0% 2010 8,371,396 8,371,396 100.0% - 8,371,396 100.0% 2011 8,199,341 8,199,341 100.0% - 8,199,341 100.0% 2012 8,456,687 8,456,687 100.0% - 8,456,687 100.0% Source: City of Saratoga .. CITY OF SARATOGA RATIOS OF OUTSTANDING DEBT BY TYPE LAST EIGHT YEARS (amounts expressed in thousands, except per capita amounts) Fiscal Year 2005 2006 2007 2008 Governmental activities General obligation bonds Total primary government Percentage of Personal Income Per capital Source: CAFR 0.91% 0.82% 0.75% 0.74% 468 460 443 430 'US Census Bureau, adjusted for inflation, MuniServices LLC 2Population information from California State Controller's Office 100 2009 2010 2011 2012 $ 13,285 $ 12,955 $ 12,605 $ 11,995 $ 13,285 $ 12,955 $ 12,605 $ 11,995 0.76% 0.54% 0.57% 0.57% 419 405 417 395 101 CITY OF SARATOGA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST EIGHT YEARS (amounts expressed in thousands, except per capita amounts) Fiscal Year 2005 2006 2007 2008 General obligation bonds $ 14,440 $ 14,170 $ 13,890 $ 13,595 Less: Amount available in debt service fund (855) (865) (747) (854 Total primary government $ 13,585 $ 13,305 $ 13,143 $ 12,741 Percentage of actual taxable value of property 0.18% 0.16% 0.15% 0.14% Per capital 440 431 419 403 Source: CAFR 'Population information from California State Controller's Office 102 2009 2010 2011 2012 $ 13,285 $ 12,955 $ 12,605 $ 11,995 (926) (890) (848) (860) $ 12,359 $ 12,065 $ 11,757 $ 11,135 0.12% 0.12% 0.12% 0.11% 390 377 389 367 103 CITY OF SARATOGA LEGAL DEBT MARGIN INFORMATION LAST EIGHT YEARS Debt Limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the Inuit as a percentage of debt limit Legal debt margin calculation Assessed value Add back: exempt real property Total assessed value (amounts expressed in thousands) Debt limit (15% of total assessed value) Debt applicable to limit $ 7,393,857 Fiscal Year $ 8,755,510 2005 2006 2007 2008 $1,120,618 $1,241,761 $1,334,455 $1,423,398 13,585 13,305 13,143 12,741 $1,107,033 $1,228,456 $1,321,312 $ 1,410,657 1.21% 1.07% 0.98% 0.90% Debt limit (15% of total assessed value) Debt applicable to limit $ 7,393,857 $ 8,144,454 $ 8,755,510 $ 9,329,953 76,932 133,951 140,859 159,369 $ 7,470,789 $ 8,278,405 $ 8,896,369 $ 9,489,322 $1,120,618 $1,241,761 $1,334,455 $1,423,398 General obligation bonds $ 14,440 $ 14,170 $ 13,890 $ 13,595 Less: Amount available in debt service fund (855) (865) (747) (854) Total net debt applicable to limit $ 13,585 $ 13,305 $ 13,143 $ 12,741 Legal debt margin $1,107,033 $1,228,456 $1,321,312 $1,410,657 Source: CAFR 104 2009 2010 2011 2012 $ 1,514,378 $ 1,536,183 $ 1,520,660 $ 1,550,118 12,359 12,065 11,757 11,135 $ 1,502,019 $ 1,524,118 $ 1,508,903 $ 1,538,983 0.82% 0.79% 0.77% 0.72% $ 9,934,362 $ 10,011,093 $ 9,907,259 $ 10,103,250 161,488 230,127 230,477 230,868 $ 10,095,850 $ 10,241,220 $ 10,137,736 $ 10,334,118 $ 1,514,378 $ 1,536,183 $ 1,520,660 $ 1,550,118 $ 13,285 $ 12,955 $ 12,605 $ 11,995 (926) (890) (848) (860) $ 12,359 $ 12,065 $ 11,757 $ 11,135 $ 1,502,019 $ 1,524,118 $ 1,508,903 $ 1,538,983 105 CITY OF SARATOGA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT (amount expressed in thousands) Overlapping Tax and Assessment Debt: Santa Clara County Estimated Estimated Share of Debt Percentage Overlapping Outstanding Applicable) Debt Direct Debt: 210,962 City of Saratoga $ 11,995 100.000% $ 11,995 Total Direct Debt 11,995 Overlapping Tax and Assessment Debt: Santa Clara County 316,800 3.785% 11,991 Foothill-De Anza Community College District 628,424 1.752% 11,010 West Valley Community College District 210,962 11.872% 25,045 Campbell Union High School District 161,195 5.616% 9,053 Fremont Union High School District 260,605 3.793% 9,885 Los Gatos- Saratoga Joint Union High School District 51,160 40.823% 20,885 Campbell Union School District 148,705 7.001% 10,411 Cupertino Union School District 120,673 6.207% 7,490 Moreland School District 85,223 12.795% 10,904 Saratoga Union School District 45,414 86.127% 39,114 Saratoga Fire Protection District 4,554 97.255% 4,429 Santa Clara Valley Water District Benefit Assessment 133,440 3.785% 5,051 Total Overlapping Tax and Assessment Debt 165,268 Overlapping General Fund Debt: Santa Clara County General Fund Obligations 770,947 3.785% $ 29,180 Santa Clara County Pension Obligations 383,035 3.785% 14,498 Santa Clara County Board of Education Certificates of Participation 11,540 3.785% 437 Santa Clara County Vector Control District Certificates of Participation 3,630 3.785% 137 Foothill-De Anza Community College District Certificates of Participation 18,890 1.752% 331 West Valley - Mission College District General Fund Obligations 65,715 11.872% 7,802 Los Gatos - Saratoga Joint Union High School District Certificates of Participation 9,070 40.823% 3,703 Campbell Union High School District Certificates of Participation 12,452 5.616% 699 Saratoga Union School District Certificates of Participation 5,830 86.127% 5,021 Midpeninsula Open Space Park District General Fund Obligations 131,003 6.236% 8,169 Total Overlapping General Fund Debt 69,977 Total Overlapping Tax & Assessement and General Fund Debt 235,245 Combined Total Debt2 $ 247,240 Percentage of overlapping agency's assessed valuation located within boundaries of the city. 2Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non - bonded capital lease obligations. Source: California Municipal Statistics, Inc. 106 CITY OF SARATOGA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST EIGHT YEARS 35,000 30,000 25,000 20,000 15,000 — 10,000 Per Capita. Personal Fiscal City Income Year Population' (in thousands)2 2005 30,850 $ 1,586,245 2006 30,835 1,719,175 2007 31,352 1,860,365 2008 31,592 1,843,425 2009 31,679 1,747,699 2010 31,997 2,401,151 2011 30,195 2,211,963 2012 30,363 2,119,463 35,000 30,000 25,000 20,000 15,000 — 10,000 Per Capita. Personal Labor Unemployment Income Force Rate $ 51,418 12,600 2.5% 55,754 12,700 2.1% 59,338 12,900 2.3% 58,351 13,100 3.2% 55,169 13,300 6.0% 75,043 13,200 5.6% 73,256 13,400 5.0% 69,804 14,000 4.4% Labor Force vs. Population 2005 2006 2007 2008 2009 2010 2011 2012 +Population fLabor Force Source: 1Popluaton information from California. State Controller's Office 2 U Census Data, adjusted for inflation, MuniServices LLC 3EDD Labor Market Information Division, MuniServices LLC 107 CITY OF SARATOGA PRINCIPAL EMPLOYERS CURRENT YEAR AND SEVEN YEARS AGO AT JUNE 30, 2012 Employer Employees Gene's Fine Foods 85 Safeway 65 Saratoga Country Club 65 McDonald's 45 Roku Inc 33 La Fondue 22 CVS 20 Classic Car Wash 20 Hinshaw, Draa & Marsh 20 Jakes of Saratoga 20 24 Hour Fitness Windermere Harmonic European Day Spa Bella Saratoga Total City Employment2 14,000 2012 20051 'Earliest information available 2EDD Labor Market Information Division, MuniServices LLC Source: City of Saratoga 108 12,600 Percentage Percentage of Total City of Total City Rank Employment Employees Rank Employment 1 0.61% 85 1 0.67% 2 0.46% 65 2 0.52% 3 0.46% 65 3 0.52% 4 0.32% 5 0.24% 6 0.16% 7 0.14% 20 6 0.16% 8 0.14% 20 7 0.16% 9 0.14% 20 9 0.16% 10 0.14% 30 4 0.24% 27 5 0.21% 20 8 0.16% 20 10 0.16% 'Earliest information available 2EDD Labor Market Information Division, MuniServices LLC Source: City of Saratoga 108 12,600 This page is intentionally blank 109 CITY OF SARATOGA FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST EIGHT FISCAL YEARS 70.00 60.00 50.00 40.00 30.00 20.00 10.00 Full -Time Equivalents 2005 2006 2007 2008 2009 2010 2011 2012 Source: City of Saratoga Budget Document ®i ■ Parks & Rec Comm Development ■ Public works ■ General gov't Fiscal Year 2005 2006 2007 2008 Function General government 12.65 10.75 11.00 13.00 Public works 20.75 20.75 21.75 22.75 Community development 14.00 13.00 14.00 14.00 Parks and recreation 10.35 10.35 10.60 10.60 Total 57.75 54.85 57.35 60.35 70.00 60.00 50.00 40.00 30.00 20.00 10.00 Full -Time Equivalents 2005 2006 2007 2008 2009 2010 2011 2012 Source: City of Saratoga Budget Document ®i ■ Parks & Rec Comm Development ■ Public works ■ General gov't ?nnA Wnin ?m i MI? 12.00 11.75 11.45 10.80 21.75 21.75 21.65 21.55 14.00 12.00 12.00 12.00 10.60 9.35 9.50 9.50 58.35 54.85 54.60 53.85 CITY OF SARATOGA OPERATING INDICATORS BY FUNCTION LAST EIGHT FISCAL YEARS Function Part 1 crimes' Total incidents Police reports Public Works Street resurfacing (miles) Street lights repaired Potholes filled (sq. ft.) Community Development Total permit valuation ($000) Parks and Recreation Classes, trips (enrollment) community events Adult Exercise (e.g. JS Dance. Jazzerxcise) Sports programs (e.g. Adult basketball, softball) Prescholl programs (enrollment) Staffed Day /summer camps (enrollment) Teen/youth council (enrollment) Senior center (enrollment/attendance days) Fiscal Year 2005 2006 2007 2008 463 426 425 381 42,011 40,567 39,663 41,243 1,767 1,659 1,767 1,941 N/A 5 14 N/A 2 3 3 12 N/A 5,000 5,000 7,000 74,668 94,485 69,935 70,442 5,604 5,712 4,817 4,782 272 312 285 362 470 473 515 591 200 163 159 225 301 287 205 242 2,506 3,798 2,221 94 22,312 22,591 18,515 17,826 'Part 1 Crimes are the following as reported to DOJ: homicide, rape, robbery, burglary, assault, theft, auto theft, and arson. Source: City of Saratoga various records 112 2009 2010 2011 2012 282 173 373 287 41,384 39,942 41,642 35,664 1,949 1,273 1,549 1,329 6 3 N/A 6 25 24 25 41 10,000 10,000 11,000 10,000 61,117 44,658 50,936 59,675 4,698 4,366 6,135 5,479 515 545 661 647 459 423 - - 171 161 142 132 225 331 326 - 419 2,110 1,323 787 16,325 16,533 14,640 15,221 113 CITY OF SARATOGA CAPITAL ASSET STATISTICS BY FUNCTION LAST EIGHT FISCAL YEARS Source: City of Saratoga various records 114 Fiscal Year 2006 2007 2008 1 - - 1 1 1 1 1 1 13 13 13 137 137 137 8,621 8,651 8,651 120 127 127 2,118 2,915 2,927 36 36 36 81 81 81 15 15 15 2005 Function Public safety Police Station 1 Fire Station Saratoga Fire District 1 Central Fire District 1 Public Works Street Miles - Private 13 Street Miles - Public 137 West Valley Sanitation District Number of Connections 8,601 Length of Sewer Lines 120 Cupertino Valley Sanitation District Number of Connections 2,118 Length of Sewer Lines 36 Parks and Recreation Parks Acreage 81 Parks 15 Source: City of Saratoga various records 114 Fiscal Year 2006 2007 2008 1 - - 1 1 1 1 1 1 13 13 13 137 137 137 8,621 8,651 8,651 120 127 127 2,118 2,915 2,927 36 36 36 81 81 81 15 15 15 2009 2010 2011 2012 1 1 1 1 1 1 1 1 14 14 14 14 140 140 140 140 8,683 8,687 8,664 8,679 127 127 127 127 2,938 2,949 2,954 2,959 37 37 37 37 84 84 84 84 15 15 15 15 EE This page is intentionally blank 116 CITY OF SARATOGA, CALIFORNIA REPORT ON FEDERAL AWARDS IN ACCORDANCE WITH OMB CIRCULAR A -133 FOR THE YEAR ENDED JUNE 309 2012 :. CITY OF SARATOGA SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS PAGE Independent Auditors' Report On Internal Control Over Financial Reporting And On Compliance And Other Matters Based On An Audit Of Financial Statements Performed In Accordance With Government Auditing Standards Independent Auditors' Report On Compliance With Requirements That Could Have A Direct And Material Effect On Each Major Program And On Internal Control Over Compliance In Accordance With United States Office Of Management And Budget Circular A -133 3 Schedule of Expenditures of Federal Awards Notes to Schedule of Expenditures of Federal Awards Summary of Auditors' Results Financial Statement Findings and Recommendations Federal Award Findings and Questioned Costs Summary Schedule of Prior Year Findings 187 5 6 7 8 9 10 urrath,wi VAVRINEK, TRINE, DAY & COMPANY, LLP Certified Public Accountants INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS The Honorable Mayor and Members of the City Council City of Saratoga, California We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Saratoga, as of and for the year ended June 30, 2012, which collectively comprise City of Saratoga's basic financial statements and have issued our report thereon dated November 12, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting Management of City of Saratoga is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered City of Saratoga's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies, or material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified a deficiency in internal control over financial reporting that we consider to be a material weakness. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs to be a material weakness. 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO im Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City of Saratoga's response to the finding identified in our audit is described in the accompanying schedule of findings and questioned costs. We did not audit the City's response and, accordingly we express no opinion on it. This report is intended solely for the information and use of management, the City Council, federal awarding agencies and the Controller of the State of California and is not intended to be and should not be used by anyone other than these specified parties. r Pleasanton, California November 12, 2012 2 :• urrath,wi VAVRINEK, TRINE, DAY & COMPANY, LLP Certified Public Accountants INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133 The Honorable Mayor and Members of the City Council City of Saratoga, California Compliance We have audited City of Saratoga's compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A -133 Compliance Supplement that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of the City of Saratoga's management. Our responsibility is to express an opinion on the City of Saratoga's compliance based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of State, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City of Saratoga's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the City of Saratoga's compliance with those requirements. In our opinion, the City of Saratoga complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2012. Internal Control Over Compliance Management of the City of Saratoga is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we considered the City of Saratoga's internal control over compliance with the requirements that could have a direct and material effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A -133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City of Saratoga's internal control over compliance. 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO 190 A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Saratoga, California, as of and for the year ended June 30, 2012, which collectively comprise the City's basic financial statements, and have issued our report thereon dated November 12, 2012, which contained unqualified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the basic financial statements as a whole. This report is intended solely for the information and use of the mayor and City Council, the City's management, federal awarding agencies, pass- through entities and the Controller of the State of California, and is not intended to be and should not be used by anyone other than these specified parties. f Pleasanton, California November 12, 2012 4 191 CITY OF SARATOGA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2012 Pass - through Federal Grant Identifying CFDA Program Federal Grantor / Pass - through Grantor / Program or Cluster Title Number Number Expenditures U.S. Department of Transportation Passed through State Department of Transportation (CalTrans): Highway Planning and Construction Cluster: (ARRA) Saratoga Ave Resurface * ESPL5332 -014 20.205 $ 131,555 (ARRA) Saratoga Ave Resurface * ESPL5332 -015 20.205 2,097 De Anza Trail * CML- 5332(012) 20.205 557,902 Highway 9 Improvement * HSIPL- 5332(011) 20.205 111,693 Quito Bridge Replacement * BRLS- 5332(004) 20.205 58,845 Saratoga Avenue Sidewalk * CML - 5332(013) 20.205 88,595 Village Phase II Design * CML - 5332(017) 20.205 134,000 Street Resurfacing * ESPL- 5332(016) 20.205 500,000 Village LED Streetlights * CML - 5332(018) 20.205 206,462 Total U.S. Department of Transportation/Highway Planning and Construction Cluster 1,791,149 U.S. Department of Energy Passed through the California Energy Commission (ARRA) Energy Efficiency and Conservation Block Grant CBG -09 -138 81.128 148,323 U.S. Department of Health and Human Services Passed through the County of Santa Clara (ARRA) Energy Efficiency and Conservation Block Grant 93.731 3,129 U.S. Department of Housing and Urban Development Passed through County Of Santa Clara Community Development Block Program Not available 14.218 30,531 Total Expenditures of Federal Awards $ 1,973,132 * Denotes a major Federal financial assistance program See accompanying Notes to the Schedules of Expenditures of Federal Awards. E 192 CITY OF SARATOGA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2012 NOTE W —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. General The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the City of Saratoga (City). The City's reporting entity is defined in Note #1 of the City's basic financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies to the City are included in the accompanying schedule. B. Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note #1 of the City's basic financial statements. The information in this schedule is presented in accordance with requirements of OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. C. Relationship to Basic Financial Statements The amounts reported in the accompanying Schedule of Expenditures of Federal awards agrees, in all material respects, to amounts reported within the City's financial statements. Federal award revenues are reported principally in the City's financial statements as intergovernmental revenues in the General, Special Revenue, and Enterprise funds. D. Relationship to Federal Financial Reports Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree with the amounts reported in the related federal financial reports. However, certain federal financial reports are filed based on cash expenditures. As such, certain timing differences may exist in the recognition of revenues and expenditures between the Schedule of Expenditures of Federal Awards and the federal financial reports. E. Catalog of Federal Domestic Assistance (CFDA) Numbers The CFDA numbers included in this report were determined based on the program name, review of grant contract information, and the Office of Management and Budget's Catalog of Federal Domestic Assistance. F. Pass - Through Entities' Identifying Number When federal awards were received from a pass - through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass- through entity. When no identifying number is shown, the City has determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass - through entity. 6 193 CITY OF SARATOGA SUMMARY OF AUDITORS' RESULTS FOR THE YEAR ENDED JUNE 30, 2012 FINANCIAL STATEMENTS Type of auditors' report issued: Unqualified Internal control over financial reporting: Material weaknesses identified? Yes Significant deficiencies identified not considered to be material weaknesses? None reported Noncompliance material to financial statements noted? No FEDERAL AWARDS Internal control over major programs: Material weaknesses identified? No Significant deficiencies identified not considered to be material weaknesses? None reported Type of auditors' report issued on compliance for major programs: Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A -133, Section .510(a) No Identification of major programs: CFDA Number Name of Federal Program or Cluster 20.205 ARRA Highway Planning and Construction (includes ARRA) Dollar threshold used to distinguish between Type A and Type B programs: $ 300,000 Auditee qualified as low -risk auditee? Yes 7 194 CITY OF SARATOGA FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS FOR THE YEAR ENDED JUNE 30, 2012 Capital Assets Condition: Review and approval of capitalization of infrastructure is not required prior to staff posting additions as conversion entries and capitalizing on the Statement of Net Assets. Criteria: Internal controls should be in place to provide reasonable assurance that infrastructure assets are capitalized only after proper management approval. Cause: There are no procedures in place to require management's written authorization for capitalized infrastructure. Effect: Without required approval infrastructure assets may be capitalized improperly. Recommendation: Procedures should be implemented requiring the review and written approval of all infrastructure assets capitalized. Views of Responsible Officials and Planned Corrective Actions: A Financial Policy, inclusive of a stated and practiced procedure, for capitalization of infrastructure is needed and will be developed in the upcoming year, prior to the next financial audit. 1 195 CITY OF SARATOGA FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED JUNE 30, 2012 None. 196 CITY OF SARATOGA SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS FOR THE YEAR ENDED JUNE 30, 2012 None. 10 197 City of Saratoga Transportation Development Act Article III Fund Saratoga, California im CITY OF SARATOGA TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND FOR THE YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Independent Auditors' Report Financial Statements Page No. Balance Sheet 2 Statement of Revenues, Expenditures and Change in Fund Balance 3 Notes to Financial Statements Independent Auditors' Compliance Report 199 4 Gel VAVRINEK, TRINE, DAY Ur arms, W1 & COMPANY, LLP Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of City Council of the City of Saratoga Saratoga, California We have audited the accompanying financial statements of the City of Saratoga (City), California Transportation Development Act Article III Fund (TDA Fund) as of and for the year ended June 30, 2012, as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial presentation. We believe our audit provides a reasonable basis for our opinion. As discussed in footnote 1, the financial statements present only the TDA Fund and do not purport to, and do not, present fairly the financial position, results of operations and cash flows of the City of Saratoga in conformity with accounting principles generally accepted in the United States of America. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the TDA Fund as of June 30, 2012, and the results of its operations and change in fund balance for the year then ended in conformity with accounting principles generally accepted in the United States of America. I _ vr` "ic, Ir., {I Pleasanton, California November 12, 2012 f J % 1 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO • LAGUNA HILLS • PALO ALTO • PI.EASAN'I ON • R.ANC11O CUCAMONGA • RIVERSIDE • SACRAMENTO 200 CITY OF SARATOGA TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND BALANCESHEET JUNE 30, 2012 ASSETS Grants receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Total liabilities Fund Balances Total fund balances Total liabilities and fund balances Capital Projects Fund $ 31,355 $ 31,355 $ 31,355 31,355 $ 31,355 The accompanying notes are an integral part of these financial statements. 2 201 CITY OF SARATOGA TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2012 Capital Projects Fund REVENUES: Saratoga Avenue Pathway Project $ 31,335 Total revenues 31,335 EXPENDITURES: Saratoga Avenue Pathway Project 31,335 Total expenditures 31,335 REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE: Beginning of year End of year $ The accompanying notes are an integral part of these financial statements. 3 202 CITY OF SARATOGA TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012 1. DESCRIPTION OF REPORTING ENTITY Reporting Entity — The City of Saratoga, California (City) Transportation Development Act Article III Funds (TDA Funds) include the financial activities associated with allocations funded by the State of California Transportation Development Act (TDA). The State of California created a local transportation fund for each County funded by a portion of the State sales tax. The TDA Funds are distributed through the Metropolitan Transportation Commission (MTC) which is the agency's responsibility for allocation of funds to eligible claimants within the greater San Francisco Bay area. The TDA grant is for Pedestrian/Bicycle Projects. TDA Funds are part of the City and are included in the capital projects funds of the comprehensive annual financial report of the City. These TDA Fund financial statements are not intended to present fairly the financial position, results of operations and cash flows of the City of Saratoga in conformity with accounting principles generally accepted in the United States of America. 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES Fund Accounting — The accounts of the TDA Fund for the City are organized on the basis of funds, and are considered to be a separate accounting entity. The operations of the fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in the fund based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The Fund is accounted for in a governmental capital projects fund. Capital projects funds are utilized to account for resources used for the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds. Basis of Accounting — The accounting and reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for on a spending or "current financial resources" measurement focus. Accordingly, only current assets and current liabilities are generally included on the balance sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. 4 203 CITY OF SARATOGA TRANSPORTATION DEVELOPMENT ACT ARTICLE III FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2012 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES (Continued) All governmental fund types are accounted for using the modified accrual basis of accounting wherein revenues are recognized in the accounting period in which they become measurable and available to pay liabilities of the current period. Expenditures are recognized in the accounting period in which the fund liability is incurred. Revenue Recognition — Under the terms of the various grant agreements, the TDA Funds generally recognize revenues when approved expenditures are incurred. Accordingly, the accompanying financial statements present grants receivable and the corresponding intergovernmental revenues. 3. TDA ARTICLE III REVENUE /EXPENDITURES The following is a summary of the project grant revenues and total expenditures. Project Name MTC Allocation # Saratoga Avenue Pathway Project 10001058 204 TDA Grant 31,355 Current Year Expenditures $ 31,355 VAVRINEK, "TRINE, DAY Ur arms, U1 & COMPANY, LLP Certified .Public Accountants INDEPENDENT AUDITORS' REPORT ON COMPLIANCE To the Honorable Mayor and Members of City Council of The City of Saratoga Saratoga, California We have audited the financial statements of the Transportation Development Act Article III Funds (TDA Funds) of The City of Saratoga, California (City) as of and for the year ended June 30, 2012, and have issued our report thereon dated November 12, 2012. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In connection with our audit, we also read and performed the applicable audit steps in Sections 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statues and Administrative Code for 1987 (the Act), and we have also read the Allocation Instructions of the Metropolitan Transportation Commission. Compliance with laws, regulations, contracts and grants applicable to the TDA Funds of the City is the responsibility of the management of the City. As part of obtaining reasonable assurance about whether the TDA Fund's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants. However, the objective of our audit was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express an opinion. The results of our test of compliance indicates that, with respect to the items tested, the TDA Funds of the City complied, in all material respects, with the provisions as set forth above. With respect to the items not tested, nothing came to our attention that caused us to believe that the TDA Funds had not complied in all material respects, with those provisions. Also, in our opinion, the funds allocated to the City for the year ended June 30, 2012 were expended, in all material respects, in compliance with the requirements contained in Section 6664 and 6667 of the Act and the Instructions of the Metropolitan Transportation Commission as set forth above. This report is intended solely for the information and use of the Mayor, City Council Members, management, and the Metropolitan Transportation Commission, and is not intended to be and should not be used by anyone other than these specified parties. f Pleasanton, California November 12, 2012 0 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO 205 CITY OF SARATOGA Saratoga, California Appropriations Limit Schedule and Independent Accountants' Report For The Year Ending June 30, 2013 206 urrath,wi VAVRINEK, TRINE, DAY & COMPANY, LLP Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT ON AGREED -UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT UNDER ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION City Council of the City City of Saratoga Saratoga, California We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Saratoga, (the City), for the year ending June 30, 2013. These procedures, which were agreed to by the City and the League of California Cities (as presented in the publication entitled Agreed Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII -B of the California Constitution) were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City management is responsible for the Appropriations Limit Schedule. This agreed upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: We obtained completed worksheets used by the City to calculate its appropriation limit for the fiscal year ending June 30, 2013, and determined that the limit and annual adjustment factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council. Findings: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Schedule, we added the prior year's limit to the total adjustments and agreed the resulting amount to the current year's limit. Findings: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriation Limit Schedule to corresponding information in worksheets used by the City. Finding: No exceptions were noted as result of our procedures. 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO 207 4. We agreed the prior year appropriations limit in the accompanying Appropriation Limit Schedule to the corresponding information in worksheets used by the City. Finding: No exceptions were noted as a result of our procedures. We were not engaged and did not conduct an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Schedule. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII -B of the California Constitution. This report is intended solely for the use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. f Pleasanton, California November 12, 2012 2 No CITY OF SARATOGA APPROPRIATIONS LIMIT SCHEDULE FOR THE YEAR ENDED JUNE 30, 2013 3 209 Amount Source A. Appropriations limit for the year ended June 30, 2012 $ 31,907,666 Prior Year Schedule B. Calculation Factors: 1. Population increase % 1.0124 * State Department of Finance 2. Inflation increase % 1.0377 State Department of Finance 3. Total adjustment factor % 1.05056748 131 x B2 C. Annual adjustment Increase 1,613,490 [(B3 -1)A)] D. Other Adjustments: Loss responsibility ( -) - N/A Transfers to private ( -) - N/A Transfers to fees ( -) - N/A Assumed responsibility ( +) - N/A E. Total Adjustments 1,613,490 (C +D) F. Appropriations limit for the year ending June 30, 2013 $ 33,521,156 (A +E) * Greater of population increase % for: City of Saratoga 1.0070 Santa Clara County 1.0124 3 209 CITY OF SARATOGA NOTES TO THE APPROPRIATIONS LIMIT SCHEDULE FOR THE YEAR ENDED JUNE 30, 2013 [FOR 1111901.1 BE112 0 ILA 11 : 01111�y:7 �►il�i.'/ Under Article XIIIB of the California Constitution (the Gann Spending Limitations Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIB, the annual calculation of the appropriation limit is subject to a limited procedures review in connection with the annual audit. 2. METHOD OF CALCULATION Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986 -87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below. 3. INFLATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year 2012 -13 represents the annual percentage change in the per capita personal income. 4. POPULATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction's own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year 2012 -13 represents the annual percentage change in population for the County. 5. OTHER ADJUSTMENTS A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustment for the year ending June 30, 2013. 4 210 VAVRINEK, TRINE, DAY Ur arms, W1 & COMPANY, LLP Certified Public Accountants To the Honorable Mayor and Members of the City Council of the City of Saratoga Saratoga, California We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Saratoga for the year ended June 30, 2012. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our engagement letter to you dated May 21, 2012. Professional standards also require that we provide you with the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Saratoga are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the year ended June 30, 2012. We noted no transactions entered into by City of Saratoga during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City's financial statements were management's estimate of capital asset depreciation expense which is based upon useful lives of five to fifty years calculated on a straight -line basis, and for those infrastructure assets accounted for under the modified approach, which incorporates estimated annual expenditures to maintain and preserve certain infrastructure assets at or above established condition assessment levels. We evaluated the key factors and assumptions used to develop depreciation expense and annual expenditures in determining that they were reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements are the actuarial information related to risk management in footnote 6, and pension benefits in footnote 7. We relied on actuaries to provide much of the information contained in these footnotes. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO • LAGUNA HILLS • PALO ALTO • PLEASANTON • RANCHO CUCAMONGA • RIVERSIDE • SACRAMENTO 211 Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. We found one instance where $36,000 of June invoices had not been accrued representing an uncorrected misstatement. This represents .03% of total net assets and 2.33% of the change in net assets for the year. Management has determined that the effect is immaterial, both individually and in the aggregate, to the financial statements taken as a whole. The following material misstatement detected as a result of audit procedures was corrected by management: Infrastructure expenses of $1.4 million were capitalized on the Statement of Net Assets that should have been expensed in accordance with the "Modified Approach" the City has elected in reporting its Streets Pavement System. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated November 12, 2012. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the governmental unit's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. 2 212 This information is intended solely for the use of the Mayor and City Council and management of City of Saratoga and is not intended to be and should not be used by anyone other than these specified parties. r r ~el�y 7; L C��• Pleasanton, California November 12, 2012 213 G ~F4 gq StiR��o� SARATOGA CITY COUNCIL �LFF'OA?4� MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Mary Furey DIRECTOR: Mary Furey SUBJECT: Development Impact Fee Report RECOMMENDED ACTION Staff recommends that the Council review and accept the annual AB 1600 Development Impact Fee report for the year ended June 30, 2012. BACKGROUND As set forth in California Government Code Section 66000 - 66025, known as the Mitigation Fee Act, agencies which impose a fee as a condition of approval for a development project are required to account for and report on the use of the fees within 180 days of fiscal year -end. Development impact fees are defined as a fee charged to compensate for demands on public resources resulting from the development of land and property and imposed as a condition of development approval. Saratoga has established two of these fees: the Park -In -Lieu Development Fee and the Road Impact Fee. REPORT SUMMARY As required under AB 1600 accounting guidelines, this report provides: 1. A brief description of the type of fee; 2. The amount of the fee; 3. Beginning and ending balances of the fees; 4. Total fees collected and the interest earned, if applicable; 5. Identification of the public improvement the fees were used for; 6. Identification and timeline of public improvements any unexpended fees will be used for; 7. Description and uses for transfers or loans of fees, if applicable. The legislature finds and declares that the timely and proper allocation of development fees promotes economic growth and is, therefore, a matter of statewide interest and concern. Park -In -Lieu Development Fees The City of Saratoga requires either a dedication of land or imposes a Park -In -Lieu fee of $20,700 on each new parcel as a condition of subdivision approval, to account for increased usage and additional park requirements brought on by increased development within the City. Five acres of parkland per 1,000 residents is the standard promulgated by the National Recreation and Parks Association and is a common metric utilized by other communities in California to measure adequacy of parkland. The 2007 214 Update to the Open Space and Conservation Element of the City's General Plan recognized that additional parkland must be protected and established a goal of five acres of parkland per 1,000 acres. This amount of parkland allows the City to maintain its existing character as a small town community surrounded by rural and open space. The Park -In -Lieu Development Fee of $20,700 per subdivided parcel is calculated based upon the formula: (2.76 people per household) X (5 acres per 1,000 residences) X ($1.5 million per acre) The following table summarizes the activity for the Park -In -Lieu Development Fees collected over the last five years, and utilized as of June 30, 2012. Remaining Park -In -Lieu Fees are re- budgeted into the assigned capital project for use in the next fiscal year, as shown in the far -right gray- shaded column: Beginning balance Sources: Park -In -Lieu Fees Transfer In - Closed Park Project Uses: West Valley Soccer Field Hakone Gardens Master Plan Ravenswood Playground Equip Historic Park Landscaping Park Restroom Improvements Budgeted FiscalYear FiscalYear FiscalYear FiscalYear FiscalYear FiscalYear 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 $ 143,799 $ (70,577) $ (29,177) $ (8,202) $ 373,216 $ 309,676 - 41,400 20,700 393,300 - - - - 275 - - 214,376 - - - - - - - - 250,000 - - - 9,374 63,540 2,086 - - - 2,509 - - - - - - 57,589 Remaining Available Funds: $ (70,577) $ (29,177) $ (8,202) $ 373,216 $ 309,676 $ - The $393,300 of Park -In -Lieu Fee revenue received in FY 2010/11 was committed to four capital improvement projects after funding the $8,202 prior year's outstanding balance remaining from the West Valley College Soccer Field capital project. As of June 30, 2012, the remaining $309,676 is assigned for use in the three capital projects listed in the above schedule. Future Park -In -Lieu impact fees will be applied to park improvement projects as directed by Council under the Capital Improvement Project budget process. Road Impact Fees In May of 2008, the City Council authorized the establishment and collection of a Road Impact Fee (effective July 1, 2008) to offset the additional cost of street maintenance incurred as a result of damage to the city's roadways caused by heavy construction vehicles on public roads from new development. The fee is based on a 2006 study by CSG consultants, commissioned by the cities of Saratoga, Monte Sereno, Campbell, and Los Gatos, which determined the impact of construction vehicles on streets and roads, and an appropriate fee to mitigate the costs of damage or deterioration in pavement. CSG Consultants determined that a fee of $0.77 per $100 of building valuation was a fair assessment of the impact of construction related vehicles on Saratoga's streets. Road Impact Fees are payable at the time building permits are issued for development. Road Impact Fee revenues are appropriated directly to the Capital Improvement Plan's Street Improvement Fund, specifically into the Street Resurfacing and the Striping & Signage projects and used to pay for increased street resurfacing and maintenance costs. The following table summarizes the Road Impact Fees collected and utilized as of June 30, 2012: 215 The above Road Impact Development Fee schedule does not include road impact fees collected under the West Valley Solid Waste Management Authority ( WVSWMA) contract with the City's solid waste contractor. The WVSWMA road impact fee is to offset costs for damage to the City's roadways caused by the heavy vehicles used in the collection of solid waste and is not included as AB 1600 reporting requirements are limited to fees in connection with the approval of development projects. FISCAL IMPACTS: AB 1600 fees do not impact the General Fund as revenues are remitted directly to Capital Project Funds and utilized for capital projects directly from these funds within the current or following budget year. City of Saratoga follows the State requirement that development impact fees be used or appropriated to a specific project within 5 years for a specified purpose, or returned to the developer /payee. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City would not be in compliance with California requirements. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: N/A ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: N/A 216 Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2008/09 2009/10 2010/11 2011/12 Beginning balance: $ - $ - $ - $ - Sources: Road Impact Fees 298,846 404,035 402,854 478,891 Uses: CIP Street Resurfacing 233,846 329,035 252,854 353,891 CEP Street Striping & Signage 65,000 75,000 150,000 125,000 Remaining Available Funds: $ - $ - $ - $ - The above Road Impact Development Fee schedule does not include road impact fees collected under the West Valley Solid Waste Management Authority ( WVSWMA) contract with the City's solid waste contractor. The WVSWMA road impact fee is to offset costs for damage to the City's roadways caused by the heavy vehicles used in the collection of solid waste and is not included as AB 1600 reporting requirements are limited to fees in connection with the approval of development projects. FISCAL IMPACTS: AB 1600 fees do not impact the General Fund as revenues are remitted directly to Capital Project Funds and utilized for capital projects directly from these funds within the current or following budget year. City of Saratoga follows the State requirement that development impact fees be used or appropriated to a specific project within 5 years for a specified purpose, or returned to the developer /payee. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City would not be in compliance with California requirements. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: N/A ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: N/A 216 SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT PREPARED BY: Public Works Iveta Harvancik Senior Engineer CITY MANAGER: Dave Anderson DIRECTOR: John Cherbone SUBJECT: Highway 9 Safety Improvement Project Phase II — Budget Adjustment RECOMMENDED ACTIONS: Approve budget adjustment for Highway 9 Safety Improvement Project Phase II Construction. REPORT SUMMARY: The Highway 9 Safety Improvement Project is a multi jurisdiction project requiring phasing. Each phase is funded by a separate grant, which require a local share. Construction of Phase II of the Project includes local match shares from City of Monte Sereno and the City of Saratoga as part of its funding. The attached Budget Resolution is needed to accept local match share from the City of Monte Sereno. There is adequate funding for the Saratoga's local match in the adopted budget for Highway 9 Safety Project. It is recommended the Council approve the attached resolution. FISCAL IMPACTS: Funding for Phase lI construction is available in Highway 9 Safety Improvement budget. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The local match funds from Monte Sereno will not be appropriated in Saratoga's budget. ALTERNATIVE ACTION: 217 None in addition to the above. FOLLOW UP ACTION: Budget will be adjusted and the funds will be received from Monte Sereno during the construction phase. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: 1. Budget Resolution 218 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA AMENDING THE ANNUAL BUDGET FOR FISCAL YEAR 2012/2013 TO ACCEPT $54,257.75 FROM THE CITY OF MONTE SERENO FOR ITS LOCAL MATCH SHARE FOR THE HIGHWAY 9 SAFETY PHASE II CONSTRUCTION PROJECT WHEREAS, the City Council desires to improve safety on Highway 9 by accepting a Local Match Share from the City of Monte Sereno in the amount of $54,257.75 for the Highway 9 Safety Improvements Construction Project - Phase Il; and WHEREAS, it is necessary to make adjustments to the Fiscal Year 2012/13 CIP budget as follows: Account Description Account# Amount To appropriate City of Monte Sereno's Local Match Share for the Highway 9 Safety Improvements Construction Project Phase H. Revenue: 411.9122.001.46441 $ 54,257.75 To appropriate expenditures for the Highway 9 Safety Improvements Construction Project Phase II: Expenditure Appropriation: 411.9122- 001.81161 $ 54,257.75 NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Saratoga hereby approves the above adjustments to the Fiscal Year 2012/13 Capital Improvement Budget. BE IT FURTHER RESOLVED, the above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on , 2012 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Attest: Crystal Bothelio, City Clerk City of Saratoga 219 Chuck Page, Mayor City of Saratoga SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT PREPARED BY: Public Works Iveta Harvancik Senior Engineer CITY MANAGER: Dave Anderson DIRECTOR: John Cherbone SUBJECT: Parker Ranch Retaining Wall Repair — Notice of Completion RECOMMENDED ACTION: Move to accept the Parker Ranch Retaining Wall Repair as complete and authorize the City Manager to sign the Notice of Completion for the construction contract. BACKGROUND: All work on the Parker Ranch Retaining Wall Repair has been completed by George Bianchi Construction to the satisfaction of City inspectors. The scope of work included all of the labor, equipment, and installation to replace sections of failing retaining wall on Parker Ranch Road and extension of retaining wall on Arroyo Vista Court. Overall, the quality of construction completed through this contract was very satisfactory. The project was completed on time and within the budget. It is therefore recommended that the Council accept the project as complete. Further, it is recommended that the Council authorize staff to record the attached Notice of Completion for the construction contract. FISCAL IMPACTS: Funding for this project was included in the adopted budget for Fiscal Year 2012 -13. CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The project would not be accepted as complete and staff would notify the contractor of any additional work required by the City Council before the project can be accepted as complete. Page 1 of 2 220 ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Staff will record the Notice of Completion for the construction contract. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: 1. Notice of Completion Page 2 of 2 221 Recording requested by, And to be returned to: City of Saratoga City Clerk 13777 Fruitvale Avenue Saratoga, CA 95070 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN that the work agreed and performed under the contract mentioned below between the City of Saratoga, a municipal corporation, whose address is 13777 Fruitvale Ave., Saratoga, CA 95070, as Owner of property or property rights, and the Contractor mentioned below, on property of the Owner, was accepted as complete by the Owner on or around the 21 st day of November, 2012. Contract Number: N/A Contract Date: September 25, 2012 Contractor's Name: George Bianchi Construction Contractor's Address: 775 A Mabury Road, San Jose, CA 95133 Description of Work: Parker Ranch Retaining Wall Repair Notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California. The undersigned certifies that he is an officer of the City of Saratoga, that he has read the foregoing Notice of Acceptance of Completion and knows the contents thereof; and that the same is true of his own knowledge, except as to those matters which are therein stated on the information or belief, as to those matters the he believes to be true. I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Saratoga, County of Santa Clara, State of California on December 5, 2012. CITY OF SARATOGA BY: ATTEST: Dave Anderson City Manager 222 Crystal Bothelio, City Clerk Gov. Code 40814 !� -SAI? r , ,G 7y SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: PREPARED BY: City Manager's Office Iveta Harvancik Senior Engineer CITY MANAGER: Dave Anderson DIRECTOR: John Cherbone SUBJECT: Highway 9 Safety Improvement Project Phase III — Notice of Completion RECOMMENDED ACTION: Move to accept the Highway 9 Safety Improvement Project Phase III as complete and authorize the City Manager to sign the Notice of Completion for the construction contract. BACKGROUND: All work on the Highway 9 Safety Improvements Phase III project has been completed by Granite Rock Company DBA, Pavex Construction Division to the satisfaction of City inspectors. The scope of work included realigning Austin Way intersection, installation of raised medians, upgraded of signalized intersections to included bicycle sensors, and a new bicycle lane near Los Gatos Boulevard. Overall, the quality of construction completed through this contract was very satisfactory. The project was completed on time and within the budget. It is therefore recommended that the Council accept the project as complete. Further, it is recommended that the Council authorize staff to record the attached Notice of Completion for the construction contract. FISCAL IMPACTS: This project was funded in the fiscal year 2011/12 capital budget. CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The project would not be accepted as complete and staff would notify the contractor of any additional work required by the City Council before the project can be accepted as complete. Page 1 of 2 223 ALTERNATIVE ACTION(S): IMa FOLLOW UP ACTION(S): Staff will record the Notice of Completion for the construction contract. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: 1. Notice of Completion Page 2 of 2 224 Recording requested by, And to be returned to: City of Saratoga City Clerk 13777 Fruitvale Avenue Saratoga, CA 95070 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN that the work agreed and performed under the contract mentioned below between the City of Saratoga, a municipal corporation, whose address is 13777 Fruitvale Ave., Saratoga, CA 95070, as Owner of property or property rights, and the Contractor mentioned below, on property of the Owner, was accepted as complete by the Owner on or around the 28th day of November, 2012. Contract Number: N/A Contract Date: March 5, 2012 Contractor's Name: Granite Rock Company DBA, Pavex Construction Division Contractor's Address: 120 Granite Rock Way, San Jose, CA 95136 Description of Work: Highway 9 Safety Improvement Project Phase III Construction Notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California. The undersigned certifies that he is an officer of the City of Saratoga, that he has read the foregoing Notice of Acceptance of Completion and knows the contents thereof; and that the same is true of his own knowledge, except as to those matters which are therein stated on the information or belief, as to those matters the he believes to be true. I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Saratoga, County of Santa Clara, State of California on December 5, 2012. CITY OF SARATOGA BY: ATTEST: Dave Anderson City Manager 225 Crystal Bothelio, City Clerk Gov. Code 40814 !� -SAI? r , G 7y SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: Public Works CITY MANAGER: Dave Anderson PREPARED BY: Macedonio Nunez DIRECTOR: John Cherbone Associate Engineer SUBJECT: Citywide Signal Upgrade Project Phase I — Notice of Completion. RECOMMENDED ACTION: Move to accept the Citywide Signal Upgrade Project Phase 1 as complete and authorize staff to record the Notice of Completion for the construction contract. REPORT SUMMARY: All work for the Citywide Signal Upgrade Project Phase 1 has been completed by the City's contractor, Guerra Construction and has been inspected by Public Work's staff. The scope of the work included upgrades to three signalized intersections along Saratoga - Sunnyvale Road. The work consisted of improvements to update existing signals with audible signals for the visually impaired. The upgrades included a "vibro- tactile" type of pedestrian signal in which the pedestrian pushbutton vibrates to let visually impaired pedestrians that the WALK signal is on and it is safe to cross. This eliminates the need for the "chirp" type alert which indicates a WALK signal. Also, storm drain upgrades and ADA upgrades to the existing curb ramps at each intersection were also done. The three signalized intersections along Saratoga - Sunnyvale Road that were upgraded are the following: 1. Reid Lane 2. Herriman Ave 3. Blauer Drive The original contract award amount was $188,305, with the approved change order authority in the amount of $23,000. The total approved budget is $211,305. The final contract amount of $201,528.86 is within the Council approved budget. In order to close out the construction contract and begin the one -year maintenance /warranty period, it is recommended that the Council accept the project as complete. Further, it is recommended that the Council authorize staff to record the attached Notice of Completion for the construction contract so that the requisite 30 -day Stop Notice for the filing of claims by subcontractors or material providers may commence. FISCAL IMPACTS: This project has been partially paid for through CDBG grant program for the amount of $199,000 and the remaining balance of $2,528.86 was funded from the City's Storm Drain Account. Page 1 of 2 226 CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The project would not be accepted as complete and staff would notify the contractor of any additional work required by the City Council before the project would be accepted as complete. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: Staff will record the Notice of Completion for the construction contracts and release the contract sureties and retentions thirty days thereafter. ADVERTISING, NOTICING AND PUBLIC CONTACT: This item was posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting and residents may subscribe to the agenda on -line by opting in at www.saratoga.ca.us. ATTACHMENTS: 1. Notice of Completion for the Citywide Signal Upgrade Project Phase 1. Page 2 of 2 227 Recording requested by, And to be returned to: City of Saratoga Public Works Department 13777 Fruitvale Avenue Saratoga, CA 95070 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN that the work agreed and performed under the contract mentioned below between the City of Saratoga, a municipal corporation, whose address is 13777 Fruitvale Ave., Saratoga, CA 95070, as Owner of property or property rights, and the Contractor mentioned below, on property of the Owner, was accepted as complete by the Owner on the 5th day of December, 2012. Contract Number: N/A Contract Date: May 19th, 2010 Contractor's Name: Guerra Construction Group Contractor's Address: 984 Memorex Drive, San Jose, CA, 95050 Description of Work: Citywide Signal Upgrade Project Phase 1 Notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California. The undersigned certifies that he is an officer of the City of Saratoga, that he has read the foregoing Notice of Acceptance of Completion and knows the contents thereof, and that the same is true of his own knowledge, except as to those matters which are therein stated on the information or belief, as to those matters the he believes to be true. I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Saratoga, County of Santa Clara, State of California on , 2012. CITY OF SARATOGA BY: ATTEST: Dave Anderson City Manager 228 Crystal Bothelio, City Clerk Gov. Code 40814 !� -SAI? r , G 7y SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: Public Works CITY MANAGER: Dave Anderson PREPARED BY: Macedonio Nunez DIRECTOR: John Cherbone Associate Engineer SUBJECT: Saratoga Village Pedestrian Enhancement Project— Notice of Completion. RECOMMENDED ACTION: Move to accept the Saratoga Village Pedestrian Enhancement Project as complete and authorize staff to record the Notice of Completion for the construction contract. REPORT SUMMARY: All work for the Saratoga Village Pedestrian Enhancement Project has been completed by the City's contractor, Robert A. Bothman, Inc and has been inspected by Public Work's staff. The scope of the work included pedestrian enhancements on Big Basin Way at 4d' Street, 3rd Street and the crosswalk enhancement at the entrance of the Village adjacent to Blaney Plaza. Improvements included street crossing improvements and minor sidewalk repair, bicycle enhancements including bike racks, pedestrian bulb outs, landscaping, hanging flower baskets on light poles, irrigation, and street furniture. The final contract amount was $670,020.38 to complete the above pedestrian enhancements and was within budget. In order to close out the construction contract and begin the one -year maintenance /warranty period, it is recommended that the Council accept the project as complete. Further, it is recommended that the Council authorize staff to record the attached Notice of Completion for the construction contract so that the requisite 30 -day Stop Notice for the filing of claims by subcontractors or material providers may commence. FISCAL IMPACTS: The project was funded by a combination of Congestion Mitigation and Air Quality Improvement (CMAQ) grant and a grant from Caltrans. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The project would not be accepted as complete and staff would notify the contractor of any additional work required by the City Council before the project would be accepted as complete. Page 1 of 2 229 ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: Staff will record the Notice of Completion for the construction contracts and release the contract sureties and retentions thirty days thereafter. ADVERTISING, NOTICING AND PUBLIC CONTACT: This item was posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting and residents may subscribe to the agenda on -line by opting in at www.saratoga.ca.us. ATTACHMENTS: Notice of Completion for the Saratoga Village Pedestrian Enhancement Project. Page 2 of 2 230 Recording requested by, And to be returned to: City of Saratoga Public Works Department 13777 Fruitvale Avenue Saratoga, CA 95070 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN that the work agreed and performed under the contract mentioned below between the City of Saratoga, a municipal corporation, whose address is 13777 Fruitvale Ave., Saratoga, CA 95070, as Owner of property or property rights, and the Contractor mentioned below, on property of the Owner, was accepted as complete by the Owner on the 5th day of December, 2012. Contract Number: N/A Contract Date: April 21th, 2010 Contractor's Name: Robert A. Bothman, Inc Contractor's Address: 650 Quinn Ave, San Jose, CA, 95112 Description of Work: Saratoga Village Pedestrian Enhancement Notice is given in accordance with the provisions of Section 3093 of the Civil Code of the State of California. The undersigned certifies that he is an officer of the City of Saratoga, that he has read the foregoing Notice of Acceptance of Completion and knows the contents thereof, and that the same is true of his own knowledge, except as to those matters which are therein stated on the information or belief, as to those matters the he believes to be true. I certify under penalty of perjury that the foregoing is true and correct. Executed at the City of Saratoga, County of Santa Clara, State of California on , 2012. CITY OF SARATOGA BY: ATTEST: Dave Anderson City Manager 231 Crystal Bothelio, City Clerk Gov. Code 40814 ,ti SF1��a L! � SARATOGA CITY COUNCIL ,95 �Ltxo��S� MEETING DATE: December 5, 2012 AGENDA ITEM: Consent DEPARTMENT: Recreation & Facilities PREPARED BY: Michael Taylor CITY MANAGER: Dave Anderson DIRECTOR: Michael Taylor SUBJECT: CDBG Funded ADA Compliant Customer Service Counter Project RECOMMENDED ACTION: Staff recommends that Council accept the report and name Phillip A. Murray Construction as the low bidder for the CDBG funded ADA compliant customer service counter at the Community Center, and authorize the City Manager to approve the contract in the amount of $38,500 with a contingency of $3,850. REPORT SUMMARY: At the April 18, 2012 meeting, Council authorized the CDBG local priorities plan that included ADA compliant customer service counters at all City facilities. In September, the Management Analyst in charge of the Santa Clara County CDBG projects approved of the projects and offered an additional $12,507 from cost savings in a previous project that was completed under budget. The new customer service counter at the Community Center will relocate the Office Specialist closer to the front door and provide ADA access. If approved, the project is expected to be completed by February 15. FISCAL IMPACTS: The $38,500 cost, plus the $3,850 contingency, if needed, will be paid from pre- approved CDBG funds. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: If not approved, the new ADA compliant customer service counter for the community center will not be installed; alternative use of the CDBG funds may be required, or the grant returned. ALTERNATIVE ACTION: None. FOLLOW UP ACTION: 232 Staff will implement Council direction. If approved, City Manager will sign and authorize the contract with Phillip A. Murray Construction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A — Bid Summary for Community Center Counter Attachment B — Community Center Counter Plans 233 CDBG PROJECT BID LIST FOR ADA IMPROVEMENTS TO PUBLIC COUNTERS CONTACTED CONTRACTORS 1. Premier West Interiors 2. Kuehue Construction and Services 3. CRW Industries, Inc. 4. Ciarra Construction 5. Phillip A Murray Construction 6. Bill Brown Construction 7. JP Whitney Construction Inc. 8. Barry Swenson Builder 9. Cookson Construction 10. DJB Construction 11. Damir Vukosa, General Contractor 12. South Bay Construction 13. Quality Plus Construction 14. Chad P. Rowan Construction BID INFORMATION Declined to bid $52,727.14 Declined to bid $62,930.00 $38,500.00 Declined to bid Incomplete bid Declined to bid Declined to bid Declined to bid Declined to bid Declined to bid Declined to bid Declined to bid Told remaining bidders cut off is 1111£12012 at noon Final bid information for project dated 11/19/2012 234 Phillip A. Murray Construction 710 E. McGlincy Lane Suite 101 Campbell, CA 95008 14(0879 -933i Office Proposed To: Estimate Proposal Date: 11, 8/2012 M Proposal 7-: 308 Project. Reception _ mi - Cu_. Description Total �n yc of work: Creatc new reception area M the loan Pauuii Cornmunity ( -.enter, modify :tn - - -- _,�wine counter to _ DA height in a reception :urea, anti modth.- a counter for the I'Linning . j Departnictit for the Utn of Saratoga. -WEI a new - Fortnax automatic sliding door,a single suing door, new cabinets in reception area, countertop, mote nccess;Lti- electrical and repair dmcxli .trt+und new openings per the plans provided dried -.'29i 1' I Includes cost of Labor at prevmling wagc, materials, overhead and performance bond. I-xdudcs city Permit and testin€;., ;tbatcntcnt of lead or asbestos. 1. Phtnoing DVParTmcnt COLInter ? u li LOi t <enior Center Counter �,tlll.lp Conuttttnity (.enter Ne`•,t' Dcsk 111lll.tlti -t. Corrtntttntty (."enter Wall and Automatic Sliding Door ?� laotla.tuY 3. Performance Bond anti Libor& \latermis Pa1'mem Bond 1.1-011.011 Total NI'MBER _8182- 235 K li'VI('1 :S " JIrjY r I%,rrrrrl:;!liIr• f� rt!r!r!!1't�r114 •, (.A r ) '.1(1141 �ilrJlli': W."') AV, Iv1 I-) r Page 1 of 1 111ol-11a5 Scott: I I L .fortllax Door 19100 Allendale Ave, Saratoga, CA 95070 Kuehne Construction Services is pleased to present our proposal to provide Installation of Tor max automatic floor and ADA countertop IIteratiom for your Facility at 19700 Aitendale Ave, Saratoga, CA 95070. 1 he following is included in this proposal. Proposal Quallficatlons e Job Walk which occurred 9/24/12 with Cole Shanks. Scope of Work: o Installation of Tormax automatic door kvitln reception desk. ej Tor max Door TX 9420 Automatic slider floor. 0 1 ea Key switch control openers. o Reception desk per plan. Total o Senior Center ADA Countertop alteration o Cut cabinet side panel down to ADA requirements,. o Rebuild right sifle laminate countertop, lit to ADA height. Total b Building Permit ADA Countertop Alteration. e Remove granite countertop -- Discard off site. C- Cut wall opening to fit ADA countertop requirement. o Install new granite countertop. Total Date: 11/16/12 l llonla;5 Scott 19700 Allendale Avv Saratoga, ('A. 95070 (2I(}il) 11fii1- 127' / Office (4011) ftf;n -Inil C-ax tSCOtt(r!} Sa ratol;a.cS'tlS Reference tf: 1241:1 "l. $ 50,114.35 $ 1,112.58 $1,5©0.71 Exclusions Permits fees. Will be accrued on a pass thru cost basis with a procurenlent fee. Repairs other than specified in this quote. Overtime labor. z Pricing is based on work being performed Monday- Friday during normal business hours; 7:UU AM - 4:00 PM Thank You for the opportunity to provide our estimate and hopefully receiving your business Kuehne Construction & Selvice Inc. Signature Cole Shanks Name & Title 11116/12 Date 236 Thomas Scott Signature IAutborited Representative) Name & Trlie (Print /type) r z I CIARRA CONSTRUCTION 663 Walnut St San Jose. CA 95110 Ph 408- 278 -0370 Fx 408- 278 -0376 Submitted to: Client: City of Saratoga Attu Thomas Scott Phone 408- 868 -1277 e -mail tscott@saratuga.ca.us PROPOSAL Date: 1 111 612 01 2 Project- Community center Senior center Location- 19700 Allendale Ave. Saratoga. CA 95070 We hereby propose to furnish all the materials and perform all the labor necessary to complete the project on plans dated 7123112. 8123112, 11/6112: BuidinglPlanning department; lower counter at info desk re -use counter, per plan ..... $1,650 Senior center reception desk; modify cabinet so that new counter can be installed per plan. change upper section of counter out with new so that counters match.....$3,980 Community center: Demo, framing, electrical, sheetrock, painting, carpet patch, install Tormax door model (TX9420SX -X- P automatic sliding door with clear anodized aluminum finish). Purchase and install 3068 swinging door, provide dust control, and clean -up. Per plans dated 712312012.....535,950.00 Community center; Cabinet and counter per plan dated 11/6112. Purchase and install ....... $19,500 Bond for project..... $1,850.00 Total: $62,930 City of Saratoga to furnish Clear access to the work Adequate laydovm area for materials Electrical power arid distribution within 100' of the work. adequate for all trades and equipment Excludes: Any work not included in the above Scope of Work Permits or fees Payment Terms: All payments are due net 30 days from billing; 2% discount if paid by the 10th of the following month. Retention is due 30 days after completion of our work. no retention held on materials. Public Liability irtisurance at 52 000.000 and Workers Compensation on above work to be provided by Ciarra Construction Respectfully Suhmitted on 1111612012 Ciarra Construction # 446886 Per NOTE This contract may be withdrawn by Ciarra Construction. if not accepted within 5 days Acceptance of Proposal: The above prices specifications and conditions are satisfactory and are hereby accepted. You are authorized to do the work as specified. Payments will be made as outlined. Date- Signature Proposal prepared by George Taddie end 237 To - Po Task List Michael Taylor Subject: RE: Saratoga ADA counter project updated information From: Jason Lovell [ iiiailto: ilovell @barryswensonbuilder.com] Sent: Monday, November 12, 2012 7:57 AM To: Thomas Scott Subject: Re: Saratoga ADA counter project updated information Thomas, Hope all is well. I have had no luck in getting any subs out to take a look at the projects you need to have completed. Some of the subs don't like the idea of a third party construction inspector, others are not into the prevailing wage aspect of the job, the building industry is also picking up and I believe that they are content with what they have now..... I think at this point, I will need to respectfully back out of this bid as we are also short on manpower and will most likely not have it until after the 1 st of the year. thank you for the opportunity to look at this project. JASON LOVELL Small Construction and Warranty MGR. - Barry Swenson Builder 777N. 1st Street, 1st Floor, San Jose, CA 95112 Direct: 408 297.2821 6 Fax: 408 297.1068 www.BarrySwensonBuilder.com STAY CONNECTED: The Bay Area Real Estate Blag CONFIDENTIALITY NOTICE: This e-mail transmission, and any documents, files or previous e-mail messages attached to it, may contain confidential information that is legally privileged. If you are not the intended recipient, or a person responsible for delivering it to the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of any of the information contained in or attached to this message is STRICTLY PROHIBITED. If you have received this transmission in error, please immediately destroy the original transmission and its attachments without reading them or saving them to disk. Thank you. Page 1 of 1 238 TORM�1t TX9420 TELESCOPING AUTOMATIC SLIDING DOOR AuroMATlc SINGLE R.H. OUTSIDE SLIDE APPLICATION .IOe NAMe, vATe DOOR LOG4TV11, • CPDR NO. 4+LR OP �� K+rnw"rararirml ..yam ��.� ...-.. n..wr 1dN.[Tee16161.6bR1111C.a PQ9. 7.3.5 OTtiER AUTOMA'rlr DOOR MANUFACTURERS WILL CE ACCEPTED IF INFORMATION 15 6UDMITTED TO OWNCIR u AMC HITKCT AND APPROVED 1.:J VlEA A - ■ P VEW E - P OM INSItJE OFFIGE 1! ER I N0Y 061 D� (5A - - - - - -- 6E9 AVTON ATIG FRE5HNLR a HVAC ZM VETAI RE615TER ARE ON THIS WALL AGOVC THe 6 FT 0211.1146 OP p 011Ge AND ONO" NOT ALTERED AD 11 0' THE WORK. DEG DNT A2 POR CgUN7lR r I PLAN I VI ^_W G - PROM L0515'r a" C2 Lofty I I -------------------- rI 1 WAd a.MV•AIR Na'w NILrW � R EXI6TIN6 RCC.CPTION C%16TIN6 CO ITY CeNfER RECEPTION FOR POOR. BHEET IN,UF=X A. EX16TIN6. DEMOLITION AND PROFOeCD FLOOR PLAN. . WWII NLEVAT101A - CCMMIAI Y CENTER FOr WITION IN wPU •10 LoNr MA ROOM a`0—. LdeeY ro +nr:1u y r.. RWIN •16'n9.' Af LJGIRIGILL aI1.YnYre6Nf'. O �•a•Lr.AM F 114. L'D00a bP R�.Y a .u+or•n +� RTPn+ er � re w • 1° y arEd b VIIIIIIY Al.: y Mme' a ILmn R,wx ..w.mT ALn wAw M1NG� N 4Pt4rfD y T•I.t _ .et r.Are Pea 16K • IY41TR9rr N!R -Mrl At aaec•n LIW' __________.. P1 .1.w aw � � N 961. MPG yry�,rr p4 �ARG CARAT -.N cIH rR+ YrA0WF0V• LWI .T. Ma a.M•NT srYL. •w wNr sa rw'r nueR AfMOON orrnitr •m rIN'asnw eNrpt � OrrICEe LO MODIPIGAYI N► TO MIMJNITY CENTER CCPfIOfI I. INSTALL NEW AUTC?MATIG DR FOR Nr=A REGEPTEON AREA vm r<Imnw ; 'ti 4 D a AREA OF 239 i v Mr wAL . orPIGC LOWY I L RtNOV6 n+r wwL� aRr Iu1,auAw wT1 H.aT swT.a I�w�i �ne�N�,�,;,r,,wr ar M lrri�ll N II a.cerr•us Wrrlw. n Mr r1•l.L I I��iiaTMw.oa� wr.. . I •u,aM. Aw fRWN MIi •Re NarwNel.mcNe \ \\ ___.__.__ -_ -__ a6rV.N6eeR MC14N/ MTO +NAMN ___.' •w r.up wr. ro •cum odiva'u air wR aarnucna exlerwo RLaer low DEMOLITION N Steve Benzine Architect C- 111+85 12406 Mdirmk." .avtega -111 —w 4wo u1 X06 60i reps PYh.ea - ENItYCn.com roar, efrva.e.rzw[hvm Ira 01 NON RECEPTION AREA FOR JOAN PASANI COMMUNITY GENTCR 14655 Allerdols Ave. Saratoga, CA tor, Cll al Earatoga 1ST111 fr0tvals Ave Saratoga, CA REV161", VDI - rINAL 1110/12 - RCCC"ION De6K dater 1/76/13 scale, NOTED drawn by SM6 Jab no. 1705 •here AI of 7 6ht6 NO 4 AVTOM IG TO RCM IN N DNRI NC55 H 1.:J VlEA A - ■ P VEW E - P OM INSItJE OFFIGE 1! ER I N0Y 061 D� (5A - - - - - -- 6E9 AVTON ATIG FRE5HNLR a HVAC ZM VETAI RE615TER ARE ON THIS WALL AGOVC THe 6 FT 0211.1146 OP p 011Ge AND ONO" NOT ALTERED AD 11 0' THE WORK. DEG DNT A2 POR CgUN7lR r I PLAN I VI ^_W G - PROM L0515'r a" C2 Lofty I I -------------------- rI 1 WAd a.MV•AIR Na'w NILrW � R EXI6TIN6 RCC.CPTION C%16TIN6 CO ITY CeNfER RECEPTION FOR POOR. BHEET IN,UF=X A. EX16TIN6. DEMOLITION AND PROFOeCD FLOOR PLAN. . WWII NLEVAT101A - CCMMIAI Y CENTER FOr WITION IN wPU •10 LoNr MA ROOM a`0—. LdeeY ro +nr:1u y r.. RWIN •16'n9.' Af LJGIRIGILL aI1.YnYre6Nf'. O �•a•Lr.AM F 114. L'D00a bP R�.Y a .u+or•n +� RTPn+ er � re w • 1° y arEd b VIIIIIIY Al.: y Mme' a ILmn R,wx ..w.mT ALn wAw M1NG� N 4Pt4rfD y T•I.t _ .et r.Are Pea 16K • IY41TR9rr N!R -Mrl At aaec•n LIW' __________.. P1 .1.w aw � � N 961. MPG yry�,rr p4 �ARG CARAT -.N cIH rR+ YrA0WF0V• LWI .T. Ma a.M•NT srYL. •w wNr sa rw'r nueR AfMOON orrnitr •m rIN'asnw eNrpt � OrrICEe LO MODIPIGAYI N► TO MIMJNITY CENTER CCPfIOfI I. 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"� � a .4, 4 � ti ,� f y •r 2 a R SA4.1rQ t SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: Community Development CITY MANAGER: Dave Anderson PREPARED BY: Christopher Riordan, AICP DIRECTOR: James Lindsay SUBJECT: Appeal of a Planning Commission decision approving a Fence Exception for a six foot tall wall within a front setback and an eight foot tall wall within the side setback at 19870 Mendelsohn Lane. RECOMMENDED ACTION: Deny the appeal thus upholding the Planning Commission's decision. PROJECT SUMMARY: On October 24, 2012, the Planning Commission approved an application for a Fence Exception for a property located at 19870 Mendelsohn Lane. The approval provided for a six foot tall wall along the front property line (where three feet is the standard maximum height) and an eight foot tall wall along the side property line within the side setback (where six feet is the standard height for solid walls /fences). The owner / appellant's original fence exception request was for a 10 foot wall along the front and side property lines. The Planning Commission determined that a fence exception was warranted but not to the extent requested by the owner as the requested height was not consistent with fence heights of other properties in the neighborhood. The complete discussion of the project is included in the October 24, 2012 Planning Commission Staff Report which is included as Attachment #3. SUMMARY OF THE APPEAL: On November 6, the applicant filed an appeal of the Planning Commission's decision. A copy of the appeal and justification letter is included as Attachment #2. The applicant is requesting that the City Council reconsider their request for a ten foot wall based on the justifications stated in their appeal letter which are summarized as follows: • The property is subject to a disturbing level of vehicle noise emanating from Saratoga - Sunnyvale Road. • The ten foot tall wall would act as a sound wall thereby reducing vehicle noise. • The house has a raised finish floor height and a six foot tall wall would not prevent headlights from illuminating its front windows. • The ten foot tall fence would be screened from offsite views by existing and proposed landscaping. 245 ENVIRONMENTAL DETERMINATION The proposed Fence Exception Request is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines (14 C.C.R. Section 15303) "New Construction or Conversion of Small Structures. This exemption allows for the construction and location of limited numbers of new, small facilities or structures, including fences and walls, and no exception to that exemption applies. FISCAL IMPACTS: Not Applicable CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The owner could construct a ten foot tall concrete wall within the front and side setbacks. ALTERNATIVE ACTIONS: 1. Approve the appeal thereby overturning the Planning Commission's approval and approving the owner's original request for a ten foot tall wall. 2. Continue the public hearing to allow the appellant an opportunity to restudy project - related issues raised by the City Council. FOLLOW UP ACTION: Not Applicable ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: 1. Resolution affirming Planning Commission approval of application FER12 -0003. 2. Applicant /Appellant's appeal application and letter. 3. Planning Commission Staff Report dated October 24, 2012 (without attachments) 4. Arborist Report 5. Neighbor Notification Forms 6. Site Photographs 7. Exhibit A — Plans reviewed by Planning Commission 246 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA DENYING AN APPEAL; THEREBY AFFIRMING THE PLANNING COMMISSION'S APPROVAL OF FENCE EXCEPTION APPLICATION FER12 -0003 Peter & Rita Redford; 19870 Mendelsohn Lane WHEREAS, on October 24, 2012, the City of Saratoga Planning Commission approved Fence Exception application FER12 -0003 with a condition that the wall be no taller than six foot tall within the front setback and 8 feet tall along the eastern side property for a length of 35 feet. WHEREAS, on November 6, 2012, Peter and Rita Redford, filed an appeal of the Planning Commission's approval of Fence Exception application FER12 -0003 requesting that the fence height be ten feet in height along the front and side property lines; and WHEREAS, on December 5, 2012 the City Council held a public hearing to consider the application at which time all interested parties were given a full opportunity to be heard and to present evidence; and WHEREAS, the City Council of the City of Saratoga has considered the application and all testimony and other evidence submitted in connection therewith; and WHEREAS, the City Council denied the appeal and therefore upheld the determination and findings of the Planning Commission's approval of the Fence Exception application; and WHEREAS, the proposed Fence Exception Request is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines (14 C.C.R. Section 15303) "New Construction or Conversion of Small Structures. This exemption allows for the construction and location of limited numbers of new, small facilities or structures, including fences and walls, and no exception to that exemption applies. WHEREAS, the findings required for issuance of a Fence Exception pursuant to City Code Section 15- 29.090 are set forth below and the Applicant has met the burden of proof to support making all of those required findings: 1) The subject fence will be compatible with other similar structures in the neighborhood. The wall, as conditioned, would be compatible with the location and placement of existing fencing in the surrounding neighborhood. The wall would be covered in stucco which is a material that is compatible with the existing house on the site as well as other structures in the neighborhood. The proposed wall would be consistent in height as adjacent fences and would be green in color to blend in with existing landscaping which would screen the wall from views from Saratoga -Los Gatos Road and Mendelsohn Lane and which would not overly detract from the surrounding rural neighborhood. This finding can be made in the affirmative. Page 1 of 4 247 2) The entirety of the subject fence will be constructed of materials that are of high quality, exhibit superior craftsmanship, and that are durable. The wall would be constructed from concrete blocks and covered with green colored stucco. All of the materials will be durable and be of high quality and would be able to weather the outdoor environment. This finding can be made in the affirmative. 3) The proposed wall would incorporate high - quality materials that are consistent with the main residence as well as other structures in the neighborhood. The fence would be screened from both Mendelsohn Lane and Saratoga -Los Gatos Road by its green color as well as existing and proposed landscaping and would not overly detract from the character and integrity of the existing community. This finding can be in made in the affirmative. 4) The granting of the exception will not be detrimental or injurious to the property, adjacent neighbors, or improvements in the general vicinity and district in which the property is located. All the proposed materials for the fence and gate would be high quality and its appearance would be screened from views from adjacent properties as well as from Mendelsohn Lane and Saratoga -Los Gatos Road. The wall would be installed and located so as to provide the required sight distance for the driveway and street intersection. This finding can be in made in the affirmative. 5) The granting of the exception will not create a safety hazard for vehicular, pedestrian or bicycle traffic and does not obstruct the safe access to and from adjacent properties. As previously stated, the proposed fence would provide the required sight distances for the driveway. The proposed fence would not interfere with visibility for pedestrian, bicyclist and vehicular traffic within the area. This finding can be made in the affirmative. CONDITIONS OF APPROVAL A. GENERAL 1. If a condition is not "Permanent" or does not have a term specified, it shall remain in effect until the issuance by the City of Saratoga of a Certificate of Occupancy or its equivalent. 2. Conditions may be modified only by the Planning Commission unless modification is expressly otherwise allowed by the City Code including but not limited to Section 16 -05 -035, as applicable. 3. The Applicant will be mailed a notice, on or after the time the Resolution granting this Approval is duly executed by the City, containing a statement of all amounts due to the City in connection with this application, including all consultant fees (collectively "processing fees "). This approval or permit shall expire sixty (60) days after the date said notice is mailed if all processing fees contained in the notice have not been paid in full. No Zoning Clearance or Demolition, Grading, or Building Permit may be issued until all processing fees have been paid in full (and, for deposit accounts, a surplus balance of $500 is maintained). 4. Agreement to Indemnify, Hold Harmless and Defend City as to Action Challenging Approval of Application and as to Damage from Performance of Work Authorized by project approval. As a condition of this Approval, Owner and Applicant hereby agree to defend, indemnify and hold the Page 2 of 4 .• City and its officers, officials, boards, commissions, employees, agents and volunteers harmless from and against: a. any and all claims, actions or proceedings to attack, set aside, void or annul any action on the subject application, or any of the proceedings, acts or determinations taken, done or made prior to said action; and b. any and all claims, demands, actions, expenses or liabilities arising from or in any manner relating to the performance of such construction, installation, alteration or grading work by the Owner and/or Applicant, their successors, or by any person acting on their behalf. In addition, prior to any City Zoning Clearance, Owner and Applicant shall execute a separate agreement containing the details of this required Agreement to Indemnify, Hold harmless and Defend, which shall be subject to prior approval as to form and content by the City Attorney. B. COMMUNITY DEVELOPMENT 5. Compliance with Plans and Description of Use. The development shall be located and constructed to include those features, and only those features, as shown on the Approved Plans and denominated Exhibit "A" date September 27, 2012 incorporated by this reference with the following modifications: 1) the height of the concrete wall shall not exceed six feet in height along the front property line and eight feet in height along the side property line outside of the front setback area for a distance of 35 feet and, 2) landscaping must be installed between the fence and Mendelsohn Lane in the areas where there is not existing landscaping. All proposed changes to the Approved Plans must be submitted in writing with plans showing the changes, including a clouded set of plans highlighting the changes. Such changes shall be subject to the requisite prior City approval. Proposed changes to the approved plans are subject to the approval of the Community Development Director and may require review by the Planning Commission. 6. Building Division Submittal. Four (4) sets of complete construction plans shall be submitted to the Building Division. These plans shall be subject to review and approval by the Community Development Department Director or designee prior to issuance of Zoning Clearance. The construction plans shall, at a minimum include the following: a. Architectural drawings and other plan sheets consistent with those identified as Exhibit "A" on file with the Community Development Department and referenced in Condition No. B.1 above which includes revised conditions of approval. b. This signed and dated Resolution printed onto separate construction plan pages. C. CITY ARBORIST 7. All recommendations contained in the City Arborist Reports dated September 24, 2012 shall be followed. 8. Tree protective measures, as specified by the City Arborist, shall be installed and inspected by Staff prior to issuance of City Permits. Page 3 of 4 249 9. Prior to issuance of City Permits, the applicant shall submit to the City, in a form acceptable to the Community Development Director, security equivalent to $115,300 to guarantee the maintenance and preservation of trees related to the fence construction. 10. The City Arborist shall inspect the site to verify compliance with tree protective measures. The bond shall be released after the planting of required replacement trees, a favorable site inspection by the City Arborist, and payment of any outstanding Arborist fees. NOW, THEREFORE, the City Council of the City of Saratoga does hereby resolve as follows: Section 1. After careful consideration of the testimony received, plans and other exhibits submitted in connection with this matter, the appeal is denied and application number FER12 -0003 for Fence Exception Approval is hereby granted. Section 2. All applicable requirements of the State, County, City and other Governmental entities must be met. PASSED AND ADOPTED by the City of Saratoga City Council, State of California, on the 5thth day of December 2012 by the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Crystal Morrow City Clerk Chuck Page Mayor Page 4 of 4 250 CITY OF SARATOGA APPEAL APPLICATION (Revised July 2007) Appellant Name: 1p �r r Cirl -TV I c Address: 1950a rilenj "[An Telephone #: �- �" 9 5 cz� Name of Applicant (If different than Appellant): Project file number and address: F 9 19 1 Q _ Coo Decision being appealed: ? 6n ()r fi G tic #o 6 { for appeal (Letter may be ❑ City Code Section 2 -05.030 (a) appeals: • No Hearing $100.00 • With Hearing $600.00 ❑ City Code Section 15- 90.010 appeals (Zoning related): • Appeals from Administrative Decisions to the $400.00 Planning Commission TR City Code Section 15- 90.020 appeals (Zoning related): • Appeals from Planning Commission to the City Council $600.00 ❑ City Code Section 13- 20.060 appeals • Appeals from Heritage Preservation Commission to the No Charge Planning Commission. ❑ City Code Section 15- 50.100 (a) appeals (Trees): $500.00 • Appeals from Administrative Decisions to the Planning Planning Commission 0 Request for a Continuance: • First Requests No Charge • 2'd Request $250.00 Date Received: Hearing Date: Fee: Receipt #: ' �7'60 PAForms & Pracedures\Appeals\Appeal Application.doc 251 Peter & Rita Redford 99870 Mendelsohn Lane Saratoga, CA 95070 Phone: 408- 892 -9583 Fax: 408- 273 -6906 November 6, 2012 City of Saratoga 13777 Fruitvale Ave Saratoga, CA 95070 RE: Appeal of Application FER12 -0003 19870 Mendelsohn Lane, Saratoga, CA 95070 Dear Saratoga City Council: We would like to respectfully appeal the Conditions of Approval for a Fence Exception as stated in the City of Saratoga Planning Commission Resolution number 12 -044 ( "Resolution "). This Resolution limits our requested fence height from 10 feet to 6 feet along the front of our property and to 8 feet along the side of the property. Please reconsider based on the following: 1. Two sides of this corner property are located in very close proximity to Highway 9, exposing the property to a disturbing level of traffic noise. 2. To mitigate this noise, we would like to replace part of the current 6 foot wooden fence with a 10 foot concrete sound wall. Because two sides of the property are located adjacent to Highway 9, the proposed wall needs to shield the front of the house and part of the side. 3. The elevation of the house is such that, even with the current 6 foot fence, traffic and vehicle headlights are clearly visible from all the front facing windows. A minimum 10 foot wall is required to block this. 4. The current 6 foot fence is completely hidden by trees and bushes. The proposed 10 foot wall will also be behind trees and bushes and will be invisible from the road. Thank you in advance for approving this 10 foot sound wall. It will reduce the constant traffic noise and will allow us to quietly enjoy our beautiful property. Peter and Rita Redford 252 Attachment 3 REPORT TO THE PLANNING COMMISSION Meeting Date: October 24, 2012 Application: Fence Exception / FER12 -0003 Location /APN: 19870 Mendelsohn Lane / 510 -01 -004 Owner / Applicant: Peter & Rita Redford Staff Planner: Christopher Riordan 19870 Mendelsohn Lane 253 �i Mendelsohn Ln `'' 3 Oak % VV. "top79766 2, L9 �S T7 r 19870 Mendelsohn Lane 253 Application No. FER12 -0003 119870 Mendelsohn Lane SUMMARY: The applicant is requesting a fence exception to construct an approximately 10' tall, concrete wall with 10' tall concrete pilasters along the front and side property lines at 19870 Mendelsohn Lane. STAFF RECOMMENDATION: Adopt Resolution No. 12-044 approving the project subject to conditions of approval which include limiting the wall height to six feet within the front setback and eight feet along the eastern side property line for a length of 35 feet. PROJECT DATA: Net Site Area: General Plan Designation: Zoning: 18,750 square feet RLD (Low Density Residential) R -1- 20,000 PROJECT DESCRIPTION: The applicant is requesting a fence exception to install an approximately 180' long, 10' tall, concrete wall with 10' tall concrete pilasters within the front yard setback at 19870 Mendelsohn Lane. The subject parcel has a required front setback of 30 feet. Per Article 15 -29 (Fences and Hedges) of the City Code, fences and walls within front setbacks are limited to a height of three feet and fences not located within a front or exterior setback may be eight feet in height which includes six feet of solid fence and two feet of lattice. The existing eight foot tall entrance gates and columns would remain. The proposed wall would be located on the front and side property lines and would be 115 feet in length at the front property line and would be 65 feet in length along the eastern side property line. Both the wall and pilasters would be covered with integral colored stucco that would be green in color. Existing landscaping in the public right -of -way would screen the wall from views from Saratoga -Los Gatos Road. A portion of the wall to be located near the existing entrance gates would be visible from Mendelsohn Lane and the project includes a condition of approval that the applicant would plant additional landscaping in this area. The existing six feet tall wood fence in the area of the proposed wall would be removed. The applicant has stated that the purpose and location of the wall is to mitigate automobile noise emanating from Saratoga -Los Gatos Road. The site is located on Mendelsohn Lane but located directly adjacent to the intersection of Mendelsohn Lane and Saratoga -Los Gatos Road (see map). Saratoga Municipal Code Section 15- 29.040 (Fencing to mitigate noise from certain arterial streets) allows the Planning Department to approve fences exceeding the height limit along specified arterial streets of which Saratoga -Los Gatos Road is one of the listed 2 254 0 F F I C E A F C 9 L N T Ts¢® �� 5 5 E 397 LOT A ' �¢C] 18 Q i 0.58 AC NET (] s 47 � y 5 F LOT 8 -1.52 AG NET SITE t MENDELSOHN LANE The applicant has stated that the purpose and location of the wall is to mitigate automobile noise emanating from Saratoga -Los Gatos Road. The site is located on Mendelsohn Lane but located directly adjacent to the intersection of Mendelsohn Lane and Saratoga -Los Gatos Road (see map). Saratoga Municipal Code Section 15- 29.040 (Fencing to mitigate noise from certain arterial streets) allows the Planning Department to approve fences exceeding the height limit along specified arterial streets of which Saratoga -Los Gatos Road is one of the listed 2 254 Application No. FER12 -0003 119870 Mendelsohn Lane streets. This code section specifies that within a front setback area abutting the arterial street (Saratoga -Los Gatos Road) the fence may be eight feet in height and located ten feet behind the front property line and may be one foot taller in height for each five foot increase in setback to a maximum height of ten feet. The ten foot tall wall as requested by the applicant would be required to be setback 20 feet from the front property line if the property abutted Saratoga -Los Gatos Road. However, because no portion of the site directly abuts Saratoga -Los Gatos Road the property owner cannot take advantage of the code section that allows an increase in fence height and therefore has applied for a fence exception. Staff is not supporting the applicants request for a ten foot wall to be constructed within the front setback or along the side property line. The subject property does not qualify for a taller fence to mitigate noise because the site does not abut Saratoga -Los Gatos Road. The ten foot wall would not be consistent with the fence heights of other properties in the neighborhood. In addition, the wall would be constructed on the property line and would not be setback the required 20 feet from the front property line as would be required if the site abutted Saratoga -Los Gatos Road. The wall along the side property line and outside of the front setback should only be eight feet tall to match the general height limit of fences. As mentioned in a preceding paragraph, the site does have an existing nonconforming wood fence that is approximately six feet in height located within the front setback. Staff is supporting a wall that exceeds the standard three foot height limit in the front yard with a condition of approval that the wall be no taller than six feet in height because: (1) the property is directly exposed to Saratoga -Los Gatos Road and is impacted by the traffic noise, (2) the property already has an existing six foot tall wood fence within the front setback, and (3) the wall would be screened by existing landscaping. Staff is supporting an eight foot wall along the side property line as it matches the general height limit for fences. Arborist Review The wall would be located in the vicinity of seven protected trees including three coast live oaks and one coast redwood. The City Arborist reviewed potential impacts to the trees as a result of the construction of the wall and the project has conditional clearance from the Arborist to proceed. No trees are proposed for removal. A copy of the Arborist report is included as Attachment #2. Neighborhood Compatibility Several homes in the neighborhood, including those on Mendelsohn Lane and Saratoga -Los Gatos Road, have front and exterior side yard fences exceeding the three foot height limit. These include six foot tall fences made of both chainlink and wrought iron. Stucco walls between six and seven feet in height are located on Saratoga -Los Gatos Road. Neighborhood Notification The applicant received completed neighbor notification forms from four adjacent neighbors which are included as Attachment #4. Each of these neighbors signed the forms without providing additional written comments. The public hearing notice was mailed to property owners within 500 feet of the subject property and is included as Attachment #5. Staff has not received any comments to date. 3 255 Application No. FER12 -0003 119870 Mendelsohn Lane FINDINGS: The findings required for issuance of a Fence Exception pursuant to City Code Section 15- 29.090 are set forth below and the Applicant has met the burden of proof to support making all of those required findings: Finding #1: The subject fence will be compatible with other similar structures in the neighborhood. The wall, as conditioned, would be compatible with the location and placement of existing fencing in the surrounding neighborhood. The wall would be covered in stucco which is a material that is compatible with the existing house on the site as well as other structures in the neighborhood. The proposed wall would be consistent in height as adjacent fences and would be green in color to blend in with existing landscaping which would screen the wall from views from Saratoga -Los Gatos Road and Mendelsohn Lane and which would not overly detract from the surrounding rural neighborhood. This finding can be made in the affirmative. Finding #2: The entirety of the subject fence will be constructed of materials that are of high quality, exhibit superior craftsmanship, and that are durable. The wall would be constructed from concrete blocks and covered with green colored stucco. All of the materials will be durable and be of high quality and would be able to weather the outdoor environment. This finding can be made in the affirmative. Finding #3: The modification will not impair the integrity and character of the neighborhood in which the fence is located. The proposed wall would incorporate high - quality materials that are consistent with the main residence as well as other structures in the neighborhood. The fence would be screened from both Mendelsohn Lane and Saratoga -Los Gatos Road by its green color as well as existing and proposed landscaping and would not overly detract from the character and integrity of the existing community. This finding can be in made in the affirmative. Finding #4: The granting of the exception will not be detrimental or injurious to the property, adjacent neighbors, or improvements in the general vicinity and district in which the property is located. All the proposed materials for the fence and gate would be high quality and its appearance would be screened from views from adjacent properties as well as from Mendelsohn Lane and Saratoga -Los Gatos Road. The wall would be installed and located so as to provide the required sight distance for the driveway and street intersection. This finding can be in made in the affirmative. Finding #5: The granting of the exception will not create a safety hazard for vehicular, pedestrian or bicycle traffic and does not obstruct the safe access to and from adjacent properties. As previously stated, the proposed fence would provide the required sight distances for the driveway. The proposed fence would not interfere with visibility for pedestrian, bicyclist and vehicular traffic within the area. This finding can be made in the affirmative. ENVIRONMENTAL DETERMINATION: The proposed Fence Exception Request is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines (14 C.C.R. Section 15303) "New Construction or Conversion of Small Structures. This El 256 Application No. FER12 -0003 119870 Mendelsohn Lane exemption allows for the construction and location of limited numbers of new, small facilities or structures and no exception to that exemption applies. STAFF RECOMMENDATION Staff recommends that the Planning Commission find this application exempt from CEQA and approve the application for Fence Exception Request with required findings and conditions by adopting the attached Resolution. ATTACHMENTS: 1. Resolution of Approval. 2. Arborist Report 3. Site Photographs 4. Neighbor Notification 5. Mailed Notice, Address Labels, Mailing Affidavit 6. Reduced Plans, Exhibit "A ". 257 Community Development Department City of Saratoga 13777 Fruitvale Avenue Saratoga, California 95070 ARBORIST REPORT It is the responsibility of the owner, architect and contractor to be familiar with the information in this report and implement the required conditions. Application #: ARB12 -0043 Prepared by Kate Bear, City Arborist Site: 19870 Mendelsohn Lane Phone: (408) 868 -1276 Owner: Peter and Rita Redford Email: kbear a,saratoaa.ca.us APN: 510 -01 -004 Email: rita @tvi.com Report History: Date: #1 Plans received July 18, 2012 Report completed August 13, 2012 #2 — This report replaces report #1 Revised plans received September 6, 2012 Met with contractor September 20, 2012 Report completed September 24, 2012 PROJECT SCOPE The applicant has submitted plans to the City to construct a perimeter wall under protected trees. No trees are requested for removal to construct the project. CLEARANCE — with conditions This project has clearance from the arborist to proceed, with the conditions noted in the Requirements section at the end of this report. PLAN REVIEW Plans Reviewed: Plans were prepared by Skyway Pools and Spas and dated May 20, 2012. One plan sheet was submitted for review for this report. Revised plans were dated September 4, 2012. TREE INFORMATION Tree Inventory: Seven trees were inventoried for this report. They include three coast live oaks ( #1, 4 and 7), one cork oak ( #2), one deodar cedar ( 0), one coast redwood ( #5), and one California pepper ( 46). Details for each tree are listed in a Tree Inventory Table at the end of this report and their locations are shown on the attached map. Appraisals: Appraised values were calculated using the Trunk Formula Method and according to the Guide for Plant Appraisal, 9'f' Edition, published by the International Society of Arboriculture (ISA), 2000. Page 1 of 4 258 19870 Mendelsohn Lane This was used in conjunction with the Species Classification and Group Assignment, published by the Western Chapter of the ISA, 2004. Tree Protection: Chain link fencing is required around individual trees or groups of trees for protection during construction, and work is not permitted within these fenced areas. Fenced areas are shown on the attached site map. Working conditions are tight for this project, and it is acceptable to use straw wattle wrapped around tree trunks from the ground to a height of 8 feet up the trunk of each tree rather than chain link fencing. If straw wattle is used, it should be wrapped so that there are no spaces between wraps. See the Requirements section for tree protection specifications. A project arborist is required to oversee and guide excavation for the wall foundation because the working space is tight. The owner has designated Anderson Tree Care Specialists as the Project Arborist for this project. To adequately protect the trees, the foundation of the wall must be discontinuous rather than continuous. The revised design is acceptable. Excavation for the footing must be hand dug or dug using an Air Spade under the supervision of a Project Arborist approved by the City Arborist. Any roots measuring two inches or more in diameter should be retained and preserved, and the footing constructed to bridge the roots and allow their retention. Roots measuring less than two inches in diameter may be cut using a sharp pruning tool. Following installation of the foundation for the new wall, a letter will be required from the Project Arborist documenting his/her findings and including photographs of the work being performed. Security Deposit for Protection of Trees During Construction: Per City Ordinance 15- 50.080, a Tree Protection security deposit equal to 100% of the appraised value of trees impacted by the project is required. Owner shall obtain, and file with the Community Development Director, the required security deposit prior to the receipt of building permits. The security deposit may be in the form of a savings account, a certificate of deposit account or a bond. The required security deposit for this project is $115,300 and is equal to the total appraised value of trees #1, 2, 3 and 4. This deposit will be held until completion of the project and acceptance by the City. FINDINGS Tree Removal No trees are requested or approved for removal to construct the project. New Construction Based on a review of information provided, and as conditioned, the project complies with the requirements for the setback of new construction from existing trees under Section 15- 50.120 of the City Code. Mitigating special design and supervision by an ISA - certified arborist will be utilized to protect the trees. REQUIREMENTS 1. This entire arborist report, including the Tree Inventory Table and the attached trap shall be included in the final job copy set of plans. Page 2 of 4 259 19870 Mendelsohn Lane 2. Owner shall hire a Project Arborist approved by the City Arborist prior to issuance of permits for supervision of excavation for wall foundation. The designated Project Arborist is Anderson Tree Care Specialists. 3. Tree Protection Security Deposit— $115,300 a. Owner shall obtain, and file with the Community Development Director, a Tree Protection security deposit for trees #l, 2, 3, and 4 prior to obtaining Building Division permits. b. The tree protection security deposit shall remain in place for the duration of construction of the project to ensure the protection of the trees. c. Once the project has been completed, inspected and approved by the City, the bond will be released. 4. Tree Protection Fencing: a. Shall be installed as shown on the attached map. b. Shall be established prior to the arrival of construction equipment or materials on site. c. Shall be comprised of six -foot high chain link fencing mounted on eight -foot tall, 2 -inch diameter galvanized posts, driven 24 inches into the ground and spaced no more than 10 feet apart. d. In lieu of chain link fencing, trees may be wrapped with straw wattle from the ground to a height of 8 feet up the trunk. Each trunk shall be wrapped separately. There shall be no spaces between wraps. e. Shall be posted with signs saying "TREE PROTECTION FENCE - DO NOT REMOVE WITHOUT APPROVAL FROM CITY ARBORIST ". f. Call City Arborist, Kate Bear at (40 8) 868 -1276 for an inspection of tree protection fencing once it has been installed. This is required prior to obtaining building division permits. g. Tree protection fencing shall remain undisturbed throughout the construction until final inspection. If contractor feels that work must be done inside the fenced area, call City Arborist to arrange a field meeting. 5. No protected tree authorized for encroachment pursuant to this project may be encroached upon until the issuance of the applicable permit from the building division for the approved project. 6. Applicant is responsible for protecting trees per City Code Article 15 -50 during all construction work. Receipt of a Planning or Building permit does not relieve applicant of his responsibilities under this Code. 7. All construction activities shall be conducted outside tree protection fencing. These activities include, but are not necessarily limited to, the following: demolition, grading, trenching, equipment cleaning, stockpiling and dumping materials (including soil fill), and equipment/vehicle operation and parking. 8. The foundation for the wall shall be discontinuous rather than continuous and shall bridge roots measuring two inches or more in diameter. Page 3 of 4 260 19870 Mendelsohn Lane 9. Excavation for the foundation shall be dug by hand under the supervision of the Project Arborist. 10. Project Arborist shall provide a letter to the City following excavation with a statement of findings and include photographs of the work as it was performed. 11. All roots measuring 2 inches or more shall be retained and the wall foundation bridged over then to accommodate the root(s). Roots measuring less than 2 inches may be cut using a sharp pruning tool. 12. Any permitted pruning or root pruning of trees on site shall be performed under the supervision of an ISA Certified Arborist and according to ISA standards. 13. The disposal of harmful products (such as chemicals, oil and gasoline) is prohibited under tree canopies or anywhere on site that allows drainage to areas under tree canopies. Herbicides shall not be applied under tree canopies. 14. At the end of the project, when the contractor wants to remove tree protection fencing and have the tree protection security deposit released by the City, call City Arborist for a final inspection. ATTACIBIENT: Tree Inventory Table dated 8 -13 -12 Map showing locations of trees and protective fencing around trees Page 4 of 4 261 TREE INVENTORY TABLE Total appraised value Should any tree listed above be removed or damaged beyond repair, owner will be required to replace that tree with trees equal to its appraised value. Replacement Tree Values 15 gallon = $150 24 inch box = $500 36 inch box = $1,500 19870 Mendelsohn Lane 48 inch box = $5,000 60 inch box = 7,000 72 inch box = $15,000 262 $116,910 August 13, 2012 Coast live oak u 1 Quercus a ri olia 28.2 Z� N 80 Good d 3 y Q Q $16,500 Cork oak 16, 20, o a 2 Quercus suer 15.8, 22,7 9 80 50 Good High Deodar cedar N Cd Cz �� �� 3 Cedrus deodara s. 'O O 80 raj Q $27,900 Coast live oak A 4 4 Cra' TREE Quercus agrifolla 7] d 30 80 80 Good to r�'+ O bG CAA sue. NO, TREE NAME F W Yv x-0 �� O r� x 5 v S c Q O Q Total appraised value Should any tree listed above be removed or damaged beyond repair, owner will be required to replace that tree with trees equal to its appraised value. Replacement Tree Values 15 gallon = $150 24 inch box = $500 36 inch box = $1,500 19870 Mendelsohn Lane 48 inch box = $5,000 60 inch box = 7,000 72 inch box = $15,000 262 $116,910 August 13, 2012 Coast live oak 1 Quercus a ri olia 28.2 70 80 80 Good Hi $16,500 Cork oak 16, 20, 2 Quercus suer 15.8, 22,7 70 80 50 Good High $66,900 Deodar cedar 3 Cedrus deodara 36.8 70 80 80 Good High $27,900 Coast live oak 4 Quercus agrifolla 13,9 30 80 80 Good High $4,000 Redwood 5 Sequoia sempervirens 6.5 20 60 80 Fair Moderate $400 California pepper 6 Schintis molle 7.2, 8.6 25 40 50 Fair Moderate X $620 Coast live oak 7 Quercus a ri olia 6.5 15 60 70 Good High $590 Total appraised value Should any tree listed above be removed or damaged beyond repair, owner will be required to replace that tree with trees equal to its appraised value. Replacement Tree Values 15 gallon = $150 24 inch box = $500 36 inch box = $1,500 19870 Mendelsohn Lane 48 inch box = $5,000 60 inch box = 7,000 72 inch box = $15,000 262 $116,910 August 13, 2012 263 19870 Mendelsohn Lane Legend Tree Canopy Tree Protective Fence — — — — — — — — — — — — 1 Tree Protection— Straw wattle '••. I ! 33I f C RESIDENCE _ 1 - I I �3 � 3I ♦ � � 'mss i7 i. i 3: N i ICi I I ,. sL =ad r � � iG OA 2 OA ? - - -• q '`__: �w.� - -' is 5. 263 City of Saratoga Neighbor Notification Form Applicant Name: Peter & Rita Redford Date: Project Address: 19870 Mendelsohn Lane Application Number: FER12 -0043 Dear Neighbor, I am proposing a project at the above address and would like to provide you with an opportunity to review the proposal and provide comments. All of the adjacent neighbors and the neighbors across the street from the property are being provided this notice as a courtesy in advance of the standard City Notice which will be sent out prior to a decision being made on the project. The City of Saratoga asks that this form be signed by each neighbor to indicate that they have had an opportunity to review the proposal. Please familiarize yourself with the project preliminary plans. NOTE: These plans are PRELIMINARY ONLY and may change as the project moves forward. You may contact the City of Saratoga's Planning Division at any time to review any changes that may occur. Please contact the City of Saratoga at 408 - 868 -1222 to speak with the assigned project planner. My signature below certifies that I ani aware of the proposal and have reviewed the plans Neighbor Name: j� g �✓ i Neighbor Address:3 Neighbor Phone it: Please address any initial concerns with the project below (attach additional sheets if necessary): Date: /Q • �, SIGNATURE: Revised 5/19108 264 City of Saratoga Neighbor Notification Form Applicant Name. Peter & Rita Redford Project Address: 19870 Mendelsohn Lane Dear Neighbor, Date: lV — r I-A0 12— Application Number: FER12 -0043 I ain proposing a project at the above address and would like to provide you with an opportunity to review the proposal and provide comments. All of the adjacent neighbors and the neighbors across the street from the property are being provided this notice as a courtesy in advance of the standard City Notice which will be sent out prior to a decision being made on the project. The City of Saratoga asks that this form be signed by each neighbor to indicate that they have had an opportunity to review the proposal. Please familiarize yourself with the project preliminary plans. NOTE: These plans are PRELIMINARY ONLY and may change as the project moves forward. You may contact the City of Saratoga's Planning Division at any time to review any changes that may occur. Please contact the City of Saratoga at 408- 868 -1222 to speak with the assigned project planner. My signature below cert�fles that I am aware of the proposal and have reviewed the plans. Neighbor Name:'1 ®Cl� Neighbor Address:✓' -f Neighbor Phone 9: TOT- 7&217- " 3V Please address any initial concerns with die project below (attach additional sheets if necessary): Date: /� Z O SIGNATURE: Revised 5/19108 265 City of Saratoga Neighbor Notification. Form Applicant Name: Peter & Rita Redford Project Address: 19870 Mendelsohn Lane Dear Neighbor, Date: Application Number: FER12 -0043 I am proposing a project at the above address and would like to provide you with an opportunity to review the proposal and provide comments. All of the adj acent neighbors and the neighbors across the street from the property are being provided this notice as a courtesy in advance of the standard City Notice which will be sent out prior to a decision being made on the project. The City of Saratoga asks that this form be signed by each neighbor to indicate that they have had an opportunity to review the proposal. Please familiarize yourself with the project preliminary plans. NOTE: These plans are PRELIMINARY ONLY and may change as the project moves forward. You may contact the City of Saratoga's Planning Division at any time to review any changes that may occur. Please contact the City of Saratoga at 408 - 8681222 to speak with the assigned project planner. My signature below certifies that I anz aware of the proposal and have reviewed the plans. Neighbor Name: TI-11, Neighbor Address: t- Neighbor Phone 4: 46 -7 t1 ' YX3 Please address any initial concerns with the project below (attach additional sheets if necessary): Date: SIGNATURE: Revised 5119108 266 City of Saratoga Neighbor Notification Forth Applicant Name: Peter & Rita Redford Project Address: 19870 Mendelsohn Lane Dear Neighbor, Date: Application Number: FER12 -0043 I am proposing a project at the above address and would like to provide you with an opportunity to review the proposal and provide comments. All of the adjacent neighbors and the neighbors across the street from the property are being provided this notice as a courtesy in advance of the standard City Notice which will be sent out prior to a decision being made on the project. The City of Saratoga asps that this form be signed by each neighbor to indicate that they have had an opportunity to review the proposal. Please familiarize yourself with the project preliminary plans. NOTE: These plans are PRELIMINARY ONLY and may change as the project moves forward. You may contact the City of Saratoga's Planning Division at any time to review any changes that may occur. Please contact the City of Saratoga at 408 -868 -1222 to speak with the assigned project planner. My signature below eertiflies that I am aware of the proposal and have reviewed the plans. Neighbor Name: -�qM P Neighbor Address: %q,? J 2, d" Z; �60)40 L �3 , Neighbor Phone #: 4102- �? a3 — 3T,-5-? Please address any initial concerns with the project below (attach additional sheets if necessary): Date: SIGNATURE: Revised 5 /19 /08 Iv I 267 Attachment 6 Site Photos Existing gates and columns ,1= i Gate and existing wood fence Views of fence location from Mendelsohn Lane Views of fence location from Mendelsohn Lane .: - - - - -- -269 - -- REVISIONS i, M1 w ez N '�n cu r t s 24 0Al- 't Okf nC A cA K- 14 URS CORTMOUS £XISRNG &' S4L1B � ' nc {xML) - f4rOBB FENCING f GA 24' -7 - TM. TfINxbIDIR. M _ E° _ t� - }� i } ' ''"—"f � -�•� ��•1+ �� � sue?. ~ ���! �.� �_ �� SIM A -�– WTO NNDCSI3. o - er SOX O .Zro i IRIS n N.TUMTE REND - EIfIY - 2 WALL HEIGHT: F3' -8" to I DOING MOTH =•�.FZ � �r t J 4JfCC1 " - ' y �G�.O.58 AC MET Frti -• mn E 28 - �=iJ?a - LOT H 0.52 AC NET ----------- -_�_ —_ zo 71 1 :tao r— �ctl�r.f 5l e j�d•? OAS �c IJ:i• 3•a57 -. � 29 ------- ----- �-- - - -- � to $ � • � o ` CO�IG'�:? s ' � a i 4 tl �r: � o „en _ � - -- - -r- - �m --- i I � OQ- 4H•�49 . lz at Im 270 RUISIONS a� Z 2 f ` �__� L L.J- Community De"topment: Department City of saratcga 13777 Fl- ityale Avenue Saratoga, CalifoiniaG5070 ARB ORISST REPORT It is the reslsansibility of the owner. arehite t -and contractor to be familiar with the information in this report and implement the required conditions. Application #: AR$1?2 00I3 Prepared by Kate Bear_ City Arbonst Site: 19870 Mendelsohn Lane Phone. (409) 868 -1276 Owner: Peter acrd Rita Redford Email: kbearO saratoga.ca_us APN: 510 -01 -004 Email: riia@tvi.corn Report HistoUl Date: #1 #2 -This report replaces report #1 Plains received July I S, 2012 Rti port completed August 13, 2012 Revised plaits received Septernber 6. 2012 Met with contractor September 20.. 201'3 Report completed Sepkernber 24.2I112 PROJECT SCOPE The appliraiwt IIAS Submitted plans En the City to Construct a perimeter a =all under protected trees_ No trees are requested for removal to construct the Project- CLEARANCE - with curriditions This pr oJeO has clearance tront the arborist to proceed. with the conditions noted in the Rellurre patents Section at the end at this report. PLAN REVIEW Plans Reviewed: Pltrns were prepared by Skyway Pools and Spas and dated May 20_ 2012. 0111 plan sheet was submitted for review for this report. Revised plans were dated September 4, 200. `TEE INFoRMA'1ION Tree Inventory: Sevea trees +.vere inventoried for this report. They include three coast rive oaks (41, 4 anal 7), one cork oak 1#2)- one deodar cedar (43t, attw coast redwyood ICS), and one California pepper- ( #6)_ Details for each tree ai°e listed lit a 'Free Inventory Tahle at the end of this report and them locations are shaven on the attached w-up_ . .rais:i {5. Appraised values were calculated nosing the Tr�tamk For°aamia it edfad and according iii the GritcdeE�i� Pla ! A, p)%aasrrd. 9" Edition, published by the Ititerix atioual Sc -ciety of Arboriculture (ISA.)_ 2000. Page i of 4 19570 Mendelsohn Lane 'Phis ww-iis iised in conjunction with the species Classification arid Group Assignment, published by the W stei-tt Chu pter of the IS A, A_ Tree Protection: Chaiq lank fencing is required around individual trees or groups of trees for protection during construction- and work is not peernit €ed within these fenced areas. Fenced areas are shown on the attached site neap. Working conditions are tight for this project. and it is acceptable to use stralar wattle wvrapped around tree trunks from the ground to a hetglit of S feet up the trunk of each tree rather than Lhain link fencing. if strawy hw;tttie is used, it should be wrapped so that there are no spaces between wraps. See the Requirements section for tree protectiwin specifications. A project arborist is required to oversee and guide excavation for the %Vail foundation because the wortcing space is tight. The owner has designated Anderson T.ee Care Specialists as the PrPje t Arborist for this project. To adequately protect Cite trees. the foundation of the wall iniust he discontinuous rattler than Continuous_ The revised design is acceptable. Excavation for the footing must be hand dug or dug using an Air Spade under the supervision of a Project Arborist approved by the City Arborist. Any roots measuring two inches orrlloir in diameter sbould be retained and preserved, and the rooting constructed to bridge the roots and allow their retention. Roots measuring less than two inches in diameter imky he cut using a sharp pruning tool. Follorwing installatitill of the foundation for the {rew v,-all. a letter will be required from the Project Arbarist documenting his /her Endings and incl�tdi7ig photographs of the work being petforined. Security De posit for Protection of Trees During ConWuctioit: Per City Ordinance 15- 50.080. a Tree Protection security dt -posit equal to k00% of the appraised VAI'ue ui trees ritnpaCted lsy the project is rewired. Owner shall obtain, and file with the Contatunity 1) ;!-velopmcrit C?irector, the required security deposit prior to the receipt of building permits. The secUrit} depadr may be in the form 4f a savirigs account, a certificate of deposit account or a bond, The repaired security deposit fur this project is $115,300 and is egwAl to the total appralsed value 0 trees #1 , 2. _i and 4 - This deposit will be held ttittil completion of the project and acceptimce by the City. FINDINGS Tree kemov al N 0. trees are requested or approved {or reint_wval t4 caiiStr•uct the project. New C Ens €roc U On based on a revre.v of information pro-vided. and its conditioned, the project etiiripli.es with the requirerttents for the setback of ite%W crirtstruetion from existing trees under Section 15- 5{1.{20 of the City Code_ hutigatiing special design and supervision by an ISA - certified arborist will be tatitiaeEd to p rotcc t the irees. REQUIREMENTS I Tili5 entire ar€t3orist report, including the Tree Inventory Table and the attached map shall be included is the final job cap} set of plaits. Page "of4 a ` 1 i 1 r 271 19870 Mendelsohn Lane ?. Owner shall hire a Project Arborist approved by the City Arborist pryer to issuance of permits for supervision of excavation for wall foundation. The designated Project Arborist is Anderson Tree Care Specialists. 3. Tree Protection Security Deposit— $115,300 a. Owner shall obtain, and file with the Community Development Director, a Tree Protection security deposit for trees #1, 2, 3. and 4 prior to obtaining Building Division permits. b. The tree protection security deposit shall remain in place for the duration of construction of the project to ensure the protection of the trees. c. Once the project has been completed, inspected and approved by the City, the bond will be released. 4. Tree Protection Fencing, a. Shall be installed as shown on the attached map. b. Shall be established prior to the arrival of construction equipment or niaterials on site. c. Shall be comprised of six -foot high chain link fencing mounted on eight -foot tall; 2 -inch diameter galvanized posts, driven 24 inches into the ground and spaced no more than to feet apart. d. In lieu of chain link, fencing, trees may be wrapped with straw wattle front the ground to a height of 8 feet up the trunk. Each trunk shall be wrapped separately. There shall be no spaces between wraps. e. Shall be posted with sighs saying "TREE PROTECTION FENCE - DO NOT REMOVE WITHOUT APPROVAL FROM CITY ARBORIST ". f. Call City Arborist, Kate Bear at (408) 968 -1276 for an inspection of tree protection feet -CMg once it has been installed. This is required prior to obtaining building division p ernli ts. g. Tree protection fencing shall rernain undisturbed throughout the construction until final tnspection. If contractor feels that work must be done inside the fenced area, call City Arborist to arrange a field meeting. 5. No protected tree authorised for encroachitlent pursuant to this project maybe encroached Upon until the issttaitce of the applicable permit from the building division for the approved project. 6. Applicant is responsible for protecting trees per City, Code Article 15 -50 during all construction work. Receipt of a Planning or Building permit does not relieve applicant of his responsibilities under this Cade. 7. All construction activities shall be conducted outside tree protection fencing. These activities include, but are not necessarily limited to, the following, demolition, grading, trenching, equipment cleaning, stockpiling and dunipingnzaterials (including soil fill), and equipment/vehiel€ operation and parking. , S. The foundation for the wall shall be discontinuous rather than continuous and shalt bridge roots measuring two inches or more in diameter. Page 3 of 4 272 19870 Mendelsohn Lane 9. Excavation for the foundation shall be dug by hand under the supervision of the Project Arborist. 10. Project Arborist shall provide a letter to the City following excavation with a statement of findings and include photographs of the work as it was perfonned. 11 _ All roots measuring 2 inches or more shall be retained and the wall foundation bridged over then to accommodate the root(s). Roots measuring less than 2 inches may be cut using a sharp pruning tool. 12. Any permitted pruning or root pruning of trees on site shall be performed under the supervision of an ISA Certified Arborist and according to ISA standards. 13. The disposal of harmful products (such as chemicals, oil and gasoline) is prohibited under tree canopies or anywhere on site that allows drainage to areas under tree canopies. Herbicides sliall not be applied under tree canopies. 14. At the end of the project, when the contractor wants to remove tree protection fencing and... h ive the tree protection security deposit released by the City, call City Arborist for a final inspection. AT`PAC"M ENT Trt'e Inventory Table dated 8 -t3 -12 Map showing locations of trees and Xotective fencing around trees Page 4 of 4 AIiBORIST INFORMATION - PROJECTS Arborist Report, An arborist report is required when the canopy of a tree comes within five feet of a proposed project area, and the tree is protected by City Code. A tree is protected by Code if it measures 10 or more inches in diameter at 4.5 feet above the ground unless it is one of the native species tested below. If the tree is a native species et is protected by City Code if it measures b inches or more at 4.5 feet above the ground. Trees on neighboring properties are included if their canopies tonne within five feet of the project area. To obtain an arborist report, the applicant submits an arborist deposit and an application to the Planning Department during counter hours 47:30 am - noon). Arborist [Deposit: The arborist deposit pays for time spent by the City Arborist on a project. The minimum deposit is $2,500 and there is a non refundable document storage fee of $150 that is also required. The City charges $120 per hour for the City Arborist's titre, Wbear the City Arborist wofks on the pr(_Ieci time is charged to the deposit account_ Typical tasks include the collection of tree measurements, preparation of arborist reports, phone conversations, email correspondence and meetengs with ttte owner. architect, engineers or others, and site inspections. Required inspections Include the inspection of fencing to protect trees before receiving a building permit, and a final utspection following completioli of the project. A final inspection of the project is mandatory once construction is completed and any required replacement trees have been planted. Once a project has been completed and accepted by the City Arborist, any remaining money in the arborist deposit will be refunded- Please allow six weeks for a refund check from the City. `free Protection Security Deposit: Prior to receiving a building permit for a project that is near to trees Protected by City Code, the oivner of the property is required to place a securitydeposit 4tl those trees. The deposit amount must equal 100% of the appraised value of the trees that are potentially impacted by the project, and may include trees on neighboring properties. The amount of the security deposit will be included in the arborist report for the project. In order to obtain a tree protection security deposit, the applicant is to put the required amount of money into a CD or savings account with their local bank, or take out an insurance policy or performance type: band. The City of Saratoga has a form (Deposit of Security to Guarantee Protection of Trees) for the applicant to fill out and turn in it) the City. "Typically this form is provided to the applicant when the arborist report is completed. If the architect for the project is the applicant, they should forward this 273 fotin'ati to the Owner of the property. The City holds this form and a receipt for the account or policy for the duration of the project. When the forth is submitted to the City, it must be signed by the awner_ a representative of the bark and by the City. The City Arborist will release the tree protection security deposit once the applicant snccessfnlly passes a final inspection after the project has been completed. City Code Sections; Article 15- 50,020 Definitions: te) Canopy or tree caiiopv means all portions of rite tree with foliage. As context requires, the terra also describes the area inside the drip line, t j) Drip line [Weans the outermost edge of the tree's canopy. When depicted on a reap or plan, the driplene Is the irregular shaped circle that follows the contour of the tree's branches as seen from overhead- 4k) Encroachment means any intrusion or human activity occurring within the root zone of a tree. inclul)in t but not limited to structural pruning in excess of International Society of Arboriculture C'onimi.isiun iISAI Pruning Standards (2001 Edition), grading, excavating, trenching, parking of vehicles, perntanent or temporary storage of materials or equipment, or the construction of structures or other improvements within the root zone of a tree. in.) Native trees: Coast Live flak (Quercus agrifolia), Valley Oak (Quercus lobata), Tan [Oak fLlthocarpus densit7orus), Black Oak (Quercus kellogi). Blue flak (Quercus douglasi), Scrub flak iQuercus dutnosa), Big leaf Maple (Ater macrophylhum), California Buckeye (Aesculus call €ornica), Douglas fir tPseudotsuga menziesii) and Coast Redwood (Sequoia setnpervirens). ttl Root zone means a specifically defined area commencing at the trunk and moving outward to form an irregularly shaped circle that follows the contour Of the tree canopy and extending beyond the dripline of the tree by line feet or such greater distance determined by the City Arborist. Aruc:le 15.50.O80(d): "In case of an application for, or a project involving encroachment on one or -note protected trees, the applicant shall post a security deposit with the City in an amount equal to one hundred percent of the International Society of Arboriculture valuation of the trees involved. The City may also require posting of a maintenance bland or security deposit of at least five years designed to ensure long term maintenance of the affected or replacement trees.," Article „15-50.120, - Unless otherwise permitted by the approving authority, no structure, excavation or i mpervicrus surface areas of any kind shall be constructed or installed within the root zone of any protected tree without mitigating special design; such as post and beam footings that bridge the roots. No parking, storing of vehicles_ equipment or other materials shall be permitted within the drip line of any protected tree without special design considerations approved by the Community lDevOopmeiut Director and the City Arborist." Article 15-513.140(W: `.The Tree Preservation Plan shall consist of a separate detailed plan drawn to a sufficient scale... to clearly indicate all protection and mitigation treasures to be taken as required by the Community Development Director andfor the Arborist Report for the project." ?article 15- 50.140ici: _....Protection measures required shall remain in place for the duration of the construction activity at the project site, or as Otherwise required by*tlre City and shall not be removed unbi authorized by the Community Development Director.- TREE INVENTORY TABLE Total appraised v-,&te Siu>uld auy trcc 1i5tcd ahovc be renimcd ordamao;cd be yond ripair. ouk ncf,.vill be rcquiyed to replace that t1rce with Imes cquai to its apprajscd vWuc. Rcplacumcnt Trec Value:; 15 guilon = S L -50 24 inch Lmc = s-500 36 irich box =$ 1,500 4L8 inch bL),x=S5.0fJ0 60iuuhbD-7.000 72 inch bQy = $15,0()4 19370 McaddEolm Late S 116.9 M August 13.2{}12 274 19870 Mendelsohn Lane Coast five oak Tree Canopy Tree Protective Fence — — — — — — — — — — — — - Tree Protection— Straw wattle ti agl,�JWW Cork oak 28,2 70 so 80 Gmd High T7 $16,500 Deodar ccdzij, 15.8-22.7 70 go 50 G(Wd High .0 $W900 COdrt&S rir arfrrrf7 Coast I i vc oak 35.ft 70 90 80 Good Hi ----------- $27, X0 4 Redwoud 13.9 30 so 80 Good High WAO S eff .-Ima se CA110mia pcpper 6-5 20 60 80 F-dr M0dCr2tC mo Schiliff.5 Count tier mak, 7.1. &6 25 A .0 'SO Fair Modcratc x $620 7 6.5 f 15 6() 70 GWJ High Total appraised v-,&te Siu>uld auy trcc 1i5tcd ahovc be renimcd ordamao;cd be yond ripair. ouk ncf,.vill be rcquiyed to replace that t1rce with Imes cquai to its apprajscd vWuc. Rcplacumcnt Trec Value:; 15 guilon = S L -50 24 inch Lmc = s-500 36 irich box =$ 1,500 4L8 inch bL),x=S5.0fJ0 60iuuhbD-7.000 72 inch bQy = $15,0()4 19370 McaddEolm Late S 116.9 M August 13.2{}12 274 19870 Mendelsohn Lane Legend Tree Canopy Tree Protective Fence — — — — — — — — — — — — - Tree Protection— Straw wattle T7 6 .0 AW j ----------- �u a Blue SwimminI.Pools Construction San Jose, CA 95112 Phone: (408) 295 -7657 Fax: (408) 295 -4601 E -mail: aquablueswimmingpools @gmail.com To whom it may concern; Thank you for the opportunity to present our proposal to this board. We are asking for the exemption for a10 ft. sound wall at the Redford residence at 19870 Mendelsohn Lane in Saratoga, along the Saratoga -Los Gatos (Hiway 9 ) corridor. Peter and Rita Redford-are requesting a sound wall at this time to replace a old wooden fence and to enhance the pleasure of the use of the property without the constant noise produced by the hiway which is un- obstructed from the .hiway to the residence as shown by the pictures we are submitting to you. In the following bullets we would like for you to see why we ask for this rule exemption. * Existing fence is 6ft. high and does nothing to block noise. * Existing fence is not visible from most areas along roadway- * In some areas the existing fence is being held up by braced 2x4s. and is in need of repairs. ( Redford's own two German Shepherd dogs) for animal safety, the fence needs to be repaired. * Standing on the deck in front of the house, you can see the highway. The existing fence does not obstruct the view or noise. * There are no structures in the path to the front or side of the residence to mitigate the noise from highway 9. From the front driveway on Mendelsohn Lane to the corner stop sign leading to highway 9, there is no noise obstructions. The property section directly across from the residence is undeveloped and the property from the side of the residence is unfenced so all noise from the highway comes directly into the home. * All plans and engineering for tree safety were submitted and approved by Saratoga city Arborist Kate Bear and planning board. 275 * Arborist Doug Anderson is the site arborist for this project 408 -206- 2722. * Proposed sound wall is to be 10 ft high, this is the height the Redford's are requesting and require to abate the .noise from highway 9. * This new sound wall is to be built along existing fence line and will be of cinder block with a stucco finish matching the color of the home. * As shown on the pictures and plans we have submitted there is a good amount of tree growth in this area and we plan on completing this project without tree 'displacement. * The new sound wall will be seen only at main entrance and will not affect the beauty of the main residence. * Existing tree growth will cover or hide the wall and its height from traffic and people walking by. t r i . • e�,ya �. fs -- _ , _ : _mom _ .._ _...- -- �---• _�'. c u e x i LJ ? ilk 4 4 i LJ 278 0 a) ti SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: Public Works PREPARED BY: John Cherbone Public Works Director CITY MANAGER: Dave Anderson DIRECTOR: John Cherbone SUBJECT: Village Streetscape Improvements Phase 2 — Review of Conceptual Design RECOMMENDED ACTION: Receive report and provide direction to staff regarding the Village Streetscape Improvements Project — Phase 2. REPORT SUMMARY: Background: In 2009, the City Council approved Phase 1 of the Village Streetscape Improvements, which were connected to an overall Conceptual Plan directed at enhancing the Village for pedestrians. Phase 1 improvements were completed last year and were concentrated at 3rd and 4th Streets. The main funding for Phase 1 improvements came from a combination of grants from VTA and Caltrans. Subsequently, the City was awarded a second grant from VTA which allowed the City to continue the implementation of the Conceptual Plan for a second phase of improvements. At the July 18, 2012 City Council Meeting, the Council approved the following design elements for Phase 2: • Continuation of repairs to sidewalks, curbs, and gutters • Bulb -outs and concrete cobble pedestrian crosswalk with in- pavement flashing lights at Big Basin Way /Starbucks • Bus Stop Shelter on Saratoga Avenue across from the old Post Office • Kiosk and Way Finding Signs • Stamped Concrete on the Highway 9 "Spur" adjacent to Blaney Plaza • Low "safety" fence along Blaney Plaza perimeter with Hwy 9 • Street and Tree lights along the Highway 9 Spur to Oak Street • Bulb -outs and concrete cobble pedestrian crosswalks at Big Basin Way /5th Street • Bulb -outs and concrete cobble pedestrian crosswalks at Big Basin Way /6th Street • Bulb -outs and concrete cobble pedestrian crosswalks at Big Basin Way at Midblock (Buy n Save) • Arch over Big Basin Way :1 Discussion: In addition to approving the above mention project elements, Council directed staff to return with additional details and information on the following: 1. Update project costs in light of recent hikes in construction prices and prioritize project elements, if necessary. 2. Provide samples of way finding signs, specifically pole design and sign colors. 3. Provide samples of the proposed arch over Big Basin Way in the oak and grape designs. 1. Updated Project Costs and Recommended Priorities: In light of recent spikes in construction costs, City Council directed staff to update the project estimate. The City's design consultant, Gates and Associates, recalculated costs based on the most recent bid prices received for similar work. Unfortunately, the recalculated cost estimates required the reduction of approximately $380,000 from the project scope in order to be within the $1,180,000 budget available for construction. Staff identified three project elements that if removed from the scope of work make up the budget shortfall: 1) 5th Street Intersection Improvements, 2) 6th Street Intersection Improvements, and 3) Big Basin Way Arch. Recommended Improvements: • Repair to sidewalks, curb and gutters (various locations) $150,000 • Concrete cobble pedestrian crosswalk with in- pavement flashing $225,000 lights at Big Basin Way /Starbucks • Bulb -outs and concrete cobble pedestrian crosswalks at Big Basin Way/ $100,000 Midblock (Buy n Save) • Stamped Concrete on the Highway 9 "Spur" adjacent to Blaney Plaza • Low "safety" fence along Blaney Plaza perimeter with Hwy 9 • Street and tree lights along the Highway 9 Spur to Oak Street • Bus Stop Shelter on Saratoga Avenue across from the old Post Office • Blaney Plaza Kiosk and Village Way Finding Signs • Misc. Electrical, Irrigation, and Landscape Upgrades • Construction Contingency Future Phase(s): • Bulb -outs and concrete cobble pedestrian crosswalks at Big Basin Way /5th Street • Bulb -outs and concrete cobble pedestrian crosswalks at Big Basin Way /6th Street • Big Basin Way Arch 281 $300,000 $25,000 $100,000 $35,000 $60,000 $75,000 $110,000 $1,180,000 $143,580 $110,735 $125,000 $379,315 2. Samples of Way Finding Signs: Full size samples of signs and poles were prepared for City Council to assist with the design choice. The samples were available to the City Council at their December 4th site visit meeting. 3. Samples of Big Basin Way Arch in the Oak and Grape Designs: Full size images of the Arch depicting the oak and grape leaf designs were prepared for City Council to assist with the design choice. The samples were available to the City Council at their December 4th site visit meeting. FISCAL IMPACTS: Funding for this work is programmed in the 2012/2013 CIP budget. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION(S): The conceptual design elements would not be approved and the project would not move forward at this time. ALTERNATIVE ACTION(S): None additional. FOLLOW UP ACTION(S): Once direction is received from City Council regarding the project scope and design elements, staff will direct the City's consultant to prepare the final construction plans. The project will require an encroachment permit from Caltrans. Once the encroachment permit is approved staff will solicit bids for construction. Depending on the review time with Caltrans, work could begin as early as spring of 2013. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. A summary of Public Outreach for Phase 2 is as follows: • Letter to Businesses: • Saratoga News Paper: • Public Meeting #1: • Plans Displayed at Chamber: • Letter to Businesses: • Saratoga News Paper: • San Jose Mercury News: 1 0/17/2011 10/18/2001 10/26/2011 6/19 to 6/26 2012 6/18/2012 6/19 and 6/26 2012 6/27/2012 282 • Public Meeting #2: 6/27/2012 • City Council Meeting: 7/18/2012 ATTACHMENTS: 1. Conceptual Design Plan 283 I 285 EX. ON- STREET PARKING TO REMAIN _ilm a Big Basin Way / Highway 9 v In A ■ ■ ■1' w ■ II� � O ��11111 � N Ll O r 1 Q 111 � C) v FA► Q 3 a 0 :11 LEGEND PRIVATE PARKING Q PUBLIC PARKING * PEDESTRIAN DIRECTIONAL VEHICULAR WAYFINDING ■ KIOSK Big Basin Way / Highway 9 v In A ■ ■ ■1' w ■ II� � O ��11111 � N Ll O r 1 Q 111 � C) v FA► Q 3 a 0 :11 FRONT VIEW BACK VIEW NOTES: I. FONT HEIGHT 4" FOR 25 MPH -LEGIBLE VIEWING DISTANCE IS 113'. 2. LETTERS ARE 3M REFLECTIVE VINYL Stale: 1/2"=1'-O" 287 ALTERNATE 2 - PARKING CIRCLE WITH DIRECTORY OR INTERPRETIVE PANEL FRONT VIEW ME] ■ ®o a SIDE VIEW METAL PANEL WITH 3M VINYL PRINT ALT: FABRICATED METAL CABINET Scale: 1 /2 "= I' -0" M--1 - VEHICULAR WAYFINDING - ALT I WITH DIRECTORY OR INTERPRETIVE PANEL VEHICULAR WAYFINDING - ALT 2 WITH DIRECTORY OR INTERPRETIVE PANEL i O bg.AA-A HISTORIC SARATOGA VILLAGE ENLARGED DIRECTORY MAP SAMPLE (DRAFT) wov - 2'-0" --1 FRONT VIEW (SIDEWALK VIEW) SIDE VIEW (STREET VIEW) ATED METAL & CABINET ilDES JNITY -IN BOARD Scale: 1/2" = 1'-0" 290 PLAN VIEW 8' -6" 2' -10 3/4" ■ FABRICATED METAL & -- GLASS CABINET - ���� BOTH SIDES sib b 9'-6" m i FRONT VIEW 291 1 11 1/2 "� SIDE VIEW TY BOARD Scale: 1/2"=['-O" N N r r I!!, 1 AM4 r �r l�J 0i r l�J r v Ask r f r w Awk `t W" b4lfll ' .. - HISTORIC SARATOGA VILLAGE ■ T pant ■ Tenant ■ Tenant ■ Tenant ■ Tenant ■ Tenam ■ T. net ■ "no ■ Tnant ■ Tenant ■ Tenet: ■ Tenon a ■ rnt ■ TTe "t T, ■ Tenant ■ Tenant ■ Tenant ■ Tenant ■ rTenant ■ Tenam ■ Tenant ■ Tenont ■ Tenont ■ Tenont ■ Taunt ■ Tenant ■ Tenont ■ Tenont ■ Tenant ■ Tenant ■ Tenont ■ Ten .nt ■ Tenant ■ Tenant ■ Tenant ■ Tenant ■ Tenant ■ Tenant ■ Tenant ■ Tenant ■ Tenant �i `Sarmogo - las Gotos Rd. / Hig6wnY 9 Saratoga - Los Gams Rd. ■ Tenant ■ t tent ■ Tenont ■ T at ■ Tenant ■ Tenant rTenant Tenant _j Tenant ■ rTenant ■ Tenant ■ Tanner ■ rTenant ■ Tam ■ rT tam ■ Tentm ■ Tenant n*n 10 ■ rTenant Tenant ■ ■ Tenant ■ Tenant ■ Tenant ■ Tenant Tenant Tenont Tenant Tenant ■ Tenant ■ Tenant ■ Tenant )f HOME ACCESSORIES& FURNISHINGS * YOU ARE HERE DEEP BROWN DEEP GREEN TERRA COTTA 293 FARMERS MARK 5 2- - 651-W ENLARGEMENT ET ------------ 1 8�-bl I'll - j 44, -w- n ENTRY GATEWAY A1144H OPT (A) - GRAPE LEAF DESIGN ENLARGEMENT I I i FARMERS MARKET WEDNESDAYS 2:30 • 6:30 PM 14' -6" 65'-0" ENTRY GATEWAY CPC H OPT (B) U-m Iml OAK LEAF DESIGN SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: City Manager's Department CITY MANAGER: Dave Anderson PREPARED BY: Monica LaBossiere DIRECTOR: Dave Anderson Human Resources Manager City Manager SUBJECT: City of Saratoga Updated Personnel Rules and Policies RECOMMENDED ACTION Adopt the Resolution approving the City's Updated Personnel Rules and Policies (hereinafter referred to as the Personnel Rules) (Exhibit "A "). REPORT SUMMARY The City's objectives of the Personnel Rules are to: 1. Comply with complex federal and state laws and regulations. 2. Ensure consistent treatment of employees. 3. Avoid misunderstandings that could potentially lead to lawsuits. 4. Orient new employees and serve as an ongoing employment resource. 5. Educate employees responsible for leading, supervising, managing, and /or directing the work of others and serve as an ongoing management resource. 6. Serve as an internal control so employees cannot take free license to make creative or unauthorized decisions. 7. Establish legal protections. The City Council adopted the original Personnel Rules on December 20, 2006 and adopted two additional policies placed in the Personnel Rules on March 19, 2008. As employment laws and personnel - related practices and procedures change over time, the City is required to periodically review and revise its Personnel Rules. The document has been comprehensively reviewed and updated throughout by staff and legal counsel (Richard Taylor, City Attorney and Deanna Mouser, Employment Attorney) to reflect the changes in employment laws and personnel - related practices and procedures. The Human Resources Manager, on behalf of the City, has satisfactorily met and consulted with the City's bargaining units, and if required by law, agreed and finalized Articles for review and adoption by the City Council. The City proposed, and the City's bargaining units agreed, to remove the Arbitration and Grievance Policy and Procedure from the Personnel Rules because this is addressed in the bargaining unit's duly Page 1 of 2 ., executed Memorandum of Understanding ( "MOU ") as needed. The City's bargaining units also agreed to add Article 23. Anti -Bully Policy. Many policies in the Personnel Rules are not modified by the terms and conditions of employees whose classifications are included in a bargaining unit's MOU or Employment Agreement or Policy adopted by the City Council by Resolution. However, if a provision of these Personnel Rules actually conflicts with any provision of an applicable MOU, resolution, law, City ordinance, Employment Agreement or Policy, or state or federal law, the MOU, resolution, law, City ordinance, Employment Agreement or Policy, or state or federal law will prevail over the information contained in the Personnel Rules. At the same time, within the limits of administrative feasibility, considerable latitude shall be given to the City Manager in the interpretation of the Personnel Rules pursuant to Saratoga Municipal Code Section 2- 20.050 (Powers and Duties of the City Manager). FISCAL IMPACTS: Not Applicable. ALTERNATIVE ACTION(S): Not Applicable. FOLLOW UP ACTION(S): Staff will implement the City of Saratoga Personnel Rules and Policies. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: 1. Resolution 2. City of Saratoga Personnel Rules and Policies Page 2 of 2 297 City of Saratoga Personnel Rules and Policies ;j BARN .�4 � /FFO �1 Updated December 2012 City of Saratoga Personnel Rules and Policies Updated December 2012 •; NOTE REGARDING CHANGES TO PAGES Occasionally, pages in the City's Personnel Rules and Policies must be replaced when typographical errors are discovered or other grammatical /format changes need to be made. These changes are minor in nature and do not alter any rule that would be subject to bargaining and /or approval by the City Council. To keep track of changes, and to ensure that individuals using the Personnel Rules and Policies are referencing the most current version, a Version Date will be noted at the bottom of any page where the contents have been changed (other than where the sole change is a page number due to reformatting) and the Human Resources Division will keep the most up to date Personnel Rules on the City's website. City of Saratoga Personnel Rules and Policies ii Updated December 2012 299 ACKNOWLEDGMENT OF RECEIPT OF THE CITY OF SARATOGA UPDATED PERSONNEL RULES AND POLICIES The undersigned employee of the City of Saratoga acknowledges receipt of the City's Personnel Rules and Policies approved and adopted by the City Council of the City of Saratoga on December 5, 2012. I understand that I am responsible for reading, understanding, and complying with the Personnel Rules and Policies. I understand if my employment classification is included in a bargaining unit, I should refer to the Memorandum of Understanding (MOU) in addition to the City's Personnel Rules and Policies. I understand if I have any questions about which resource to consult, I may contact the Human Resources Division or union representative. I acknowledge a signed copy of this Acknowledgement of Receipt shall be submitted to the Human Resources Division and will be placed in my official personnel file. Employee Signature DATE: ': \ \ -►/ City of Saratoga Personnel Rules and Policies iii Updated December 2012 300 This page intentionally left blank for duplex printing purposes. City of Saratoga Personnel Rules and Policies Updated December 2012 301 TABLE OF CONTENTS CITY OF SARATOGA PERSONNEL RULES AND POLICIES ARTICLE 1. AUTHORITY FOR AND COVERAGE OF THE PERSONNEL POLICIES.................................................... ..............................1 Authority....................................................... ..............................1 Coverage..................................................... ..............................1 No Contract Created .................................... ..............................1 Conflicts with Other Provisions ..................... ..............................1 Violation of the Personnel Policies ............... ..............................1 Delegation of Authority ................................. ..............................1 Severability.................................................. ..............................1 ARTICLE 2. EQUAL EMPLOYMENT OPPORTUNITY, REASONABLE ACCOMMODATION POLICY ...................... ..............................2 GeneralPolicy .............................................. ..............................2 Reasonable Accommodation Policy ............. ..............................2 ARTICLE 3. POLICY AGAINST HARASSMENT, DISCRIMINATION AND RETALIATION ............................................. ..............................4 Purpose........................................................ ..............................4 Policy........................................................... ..............................4 PolicyCoverage ........................................... ..............................4 Responsibilities of Employees, Management and Supervisory Employees................................................... ..............................5 Definitions.................................................... ..............................6 Reporting of Harassment, Discrimination, or Retaliation ............8 City's Response to Complaint of Harassment, Discrimination, or Retaliation.................................................... ..............................9 EMPLOYEE RECRUITMENT, SELECTION AND APPOINTMENT .......................................... .............................11 Policy.......................................................... .............................11 Department Hiring Procedures .................... .............................11 JobPosting ................................................. .............................11 ApplicationForm ......................................... .............................12 Application Submittal ................................... .............................12 City of Saratoga Personnel Rules and Policies v Updated December 2012 302 Rejection of Applicants ................................ .............................12 Selection..................................................... .............................12 New Hire Probation ..................................... .............................15 Immigration Law Compliance ...................... .............................15 Employee Orientation .................................. .............................15 EMPLOYEE STATUS ................................. .............................16 FLSA - Exempt Employee ........................... .............................16 FLSA Overtime - Eligible Employee .............. .............................16 At -Will Employee ......................................... .............................16 Probationary Employee ............................... .............................16 Length of Probation ..................................... .............................16 Regular Employee ....................................... .............................17 Full -Time Employee .................................... .............................17 Part -Time Employee ................................... .............................17 Temporary, Provisional or Seasonal Employee .......................17 ARTICLE 6. EMPLOYEE BENEFITS ............................. .............................18 Discretionary Benefits ................................. .............................18 Legislated Benefits ...................................... .............................21 Paid Time Off (PTO) ................................... .............................23 Administrative Leave ................................... .............................24 PERFORMANCE EVALUATIONS ............. .............................26 Frequency................................................... .............................26 Process....................................................... .............................26 NoAppeal ................................................... .............................26 ARTICLE 8. PERSONNEL FILES AND REFERENCE REQUESTS ...........27 File Maintenance ......................................... .............................27 FileContent ................................................. .............................27 Employee's Responsibility to Notify City of Changes ...............27 Medical Information ................................... ............................... 27 Access to Personnel Files ........................... .............................27 Destruction of Personnel Records ............... .............................28 Employment Reference Requests ............... .............................28 City of Saratoga Personnel Rules and Policies vi Updated December 2012 303 ARTICLE 9. TRANSFER, REINSTATEMENT, RESIGNATION AND JOB ABANDONMENT ........................................ .............................29 Transfer..................................................... ............................... 29 Reinstatement............................................. .............................29 Resignation................................................. .............................29 Job Abandonment ....................................... .............................30 ARTICLE 10. LAYOFF ...................................................... .............................31 Policy.......................................................... .............................31 Notice........................................................ ............................... 31 Orderof Layoff .......................................... ............................... 31 Demotion................................................... ............................... 31 Transfer..................................................... ............................... 31 Re- employment ......................................... ............................... 32 Insurance Benefits Upon Layoff .................. .............................32 Paid Time Off (PTO) ................................... .............................32 WORK WEEK, HOURS OF WORK, AND ABSENCE CONTROL.................................................. .............................33 Work Week Defined .................................... .............................33 Hoursof Work ........................................... ............................... 33 AbsenceControl .......................................... .............................33 Meal and Rest Periods ................................ .............................34 Timekeeping Requirements ........................ .............................35 Compliance with Legal Requirements and Overtime ...............35 Paycheck Review and Accuracy ................. .............................36 ARTICLE 12. COMPENSATION AND PAYROLL PRACTICES ...................37 Salary Upon Appointment ........................... .............................37 Salary Upon Acting Assignment (Work out of Class) ...............37 Salary Upon Transfer .................................. .............................37 Salary Upon Reclassification ...................... .............................37 Salary Upon Promotion ............................... .............................38 Salary Upon Demotion for Cause ................ .............................38 Salary Upon Demotion Due to Layoff .......... .............................38 Eligibility for Salary Progression within Range .........................38 Pay Range Establishment ........................... .............................38 City of Saratoga Personnel Rules and Policies vii Updated December 2012 304 Pay Range Adjustments .............................. .............................38 Overtime Compensation ............................. .............................39 Prohibited Salary Deductions ...................... .............................39 ARTICLE 13. LEAVES OF ABSENCE ............................. .............................41 HolidayLeave ............................................. .............................41 Employee Voluntary Donation of Accrued Paid Time Off (PTO) Program...................................................... .............................42 California Family Rights Act (CFRA) and Family and Medical Care Leave Act (FMLA) Leaves .................. .............................42 Bereavement Leave .................................... .............................48 Pregnancy Disability Leave ( PDL) ............... .............................48 MilitaryLeave .............................................. .............................51 Time Off for Victims of Violent Crimes or Domestic Abuse ......52 Jury Duty and Court Appearances .............. .............................52 TimeOff to Vote .......................................... .............................53 Work Related Illness or Injury Leave ........... .............................53 School - Related Leaves ............................. ............................... 54 Unauthorized Leave .................................. ............................... 55 UnpaidLeave .............................................. .............................55 General Provisions Applicable to all Leaves ............................55 ARTICLE 14. ALCOHOL AND DRUG ABUSE POLICY .. .............................58 Purpose..................................................... ............................... 58 Policy.......................................................... .............................58 Application.................................................. .............................60 Employee Responsibilities .......................... .............................60 Management Responsibilities ..................... .............................60 Physical Examination and Procedure .......... .............................62 Confidentiality............................................ ............................... 64 ARTICLE 15. FITNESS FOR DUTY EXAMINATIONS ..... .............................65 Pre - Employment Drug Testing, Conditional Offer of Employment .................................................................. ............................... 65 Probationary and Regular Status Employee Examinations ...... 65 Role of Health Care Provider .................... ............................... 66 Medical Information ................................... ............................... 66 City of Saratoga Personnel Rules and Policies viii Updated December 2012 305 Medical Information from the Employee's Health Care Provider .................................................................. ............................... 66 ARTICLE 16. WORKPLACE SECURITY ......................... .............................67 Policy.......................................................... .............................67 Requirements for Employees ...................... .............................67 Definitions................................................... .............................68 Incident Reporting Procedures .................... .............................69 Investigation................................................ .............................70 Management Responsibilities ..................... .............................70 Follow up and Disciplinary Procedures ....... .............................70 ARTICLE 17. EMPLOYMENT OF RELATIVES ................ .............................71 Definitions................................................... .............................71 Policy Relating to Relatives ......................... .............................71 Policy Concerning Employees Who Become Spouses or Domestic Partners ....................................... .............................71 ARTICLE 18. USE OF CITY PROPERTY AND EQUIPMENT .......................73 Policy.......................................................... .............................73 Use of Communications Equipment ............ .............................73 VehicleSafety ............................................. .............................74 ARTICLE 19. OUTSIDE EMPLOYMENT .......................... .............................75 Policy.......................................................... .............................75 Definition of Outside Employment or Activity ...........................75 Prohibited Types of Outside Employment or Activities .............75 Request to Pursue Outside Employment or Activity .................76 ARTICLE 20. EMPLOYEE POLITICAL ACTIVITIES ........ .............................76 Policy.......................................................... .............................76 Examples of Prohibited Conduct ................. .............................76 Examples of Permitted Conduct .................. .............................77 ARTICLE 21. DISCIPLINE POLICY .................................. .............................78 Policy Coverage .......................................... .............................78 Causes for Discipline .................................. .............................78 Investigation................................................ .............................81 City of Saratoga Personnel Rules and Policies Updated December 2012 306 ix Counseling and Discipline ........................... .............................81 Skelly Process — Pre - Disciplinary Procedure for Suspension or Discharge.................................................. ............................... 83 Evidentiary Appeal to the City Manager ...... .............................84 ARTICLE 22. EMPLOYER - EMPLOYEE RELATIONS POLICY ....................89 Policy.......................................................... .............................89 Definitions................................................... .............................89 Representation Proceedings ....................... .............................91 Administration ............. ............................... ............................100 Impasse Procedures ... ............................... ............................100 Construction................ ............................... ............................104 ARTICLE 23. ANTI - BULLYING POLICY ......................... ............................106 Policy Coverage .......... ............................... ............................106 Definition..................... ............................... ............................106 Responsibilities ........... ............................... ............................107 Corrective Action and /or Disciplinary Measures .....................107 City of Saratoga Personnel Rules and Policies x Updated December 2012 307 Article 1. Authority for and Coverage of the Personnel Policies ARTICLE 1. AUTHORITY FOR AND COVERAGE OF THE PERSONNEL POLICIES Section 1. Authority The City of Saratoga City Council authorizes the City Manager to establish and enforce these personnel rules and policies ( "Policies ") pursuant to City Code 2- 20.050 Powers and Duties of the City Manager. Section 2. Coverage These Policies apply to all City employees, except that nothing in these Policies regarding disciplinary rights, disciplinary processes, and the grievance policy under Article 22 applies to those who serve in an at -will capacity, or at the pleasure of the City Council, or by contract. Nothing in these Policies gives those who serve at -will, or at the pleasure of the City Council, or by contract the right to continued employment. Section 3. No Contract Created Nothing in these Policies is intended to create or creates any contractual right in City employment. Section 4. Conflicts with Other Provisions This document includes policies and rules which govern the personnel system for the City of Saratoga. They are intended to set forth general provisions which apply to all City of Saratoga employees. However, if a provision of these Policies actually conflicts with any provision of an applicable collective bargaining agreement or Memorandum of Understanding ( "MOU "), resolution, law, City ordinance, Employment Agreement or Policy, or state or federal law, the collective bargaining agreement or MOU, resolution, law, City ordinance, Employment Agreement or Policy, or state or federal law shall control. In all other cases, these Policies apply. Section 5. Violation of the Personnel Policies A violation of any Policy contained herein shall be grounds for discipline, up to and including termination from City employment. Section 6. Delegation of Authority Any of the City's management staff may delegate any of the responsibilities listed in these Policies to any other appropriate management staff member, regardless of whether the Policy at issue specifically authorizes the delegation of the matter. Section 7. Severability If any court finds any section, subsection, sentence. clause or phrase of these Policies to be inconsistent with the law, such finding(s) shall not affect the validity of the remaining portion of these Policies. City of Saratoga Personnel Rules and Policies Updated December 2012 1: Article 2. Equal Employment Opportunity, Reasonable Accommodation Policy ARTICLE 2. EQUAL EMPLOYMENT OPPORTUNITY, REASONABLE ACCOMMODATION POLICY Section 1. General Policy The City prohibits discrimination against applicants or employees on the basis of any of the following protected classifications: race, religion, color, religious creed, gender (gender identity and gender expression), sex (including pregnancy, childbirth, and related conditions), sexual orientation (including heterosexuality, homosexuality and bisexuality, national origin, ancestry, citizenship status, marital status, age (40 years and older), medical condition, physical disability, mental disability, genetic information or characteristics, and status as a veteran or a member of the uniformed services. The City will afford equal employment opportunity to all qualified applicants and employees with regard to all terms and conditions of employment, including hiring, compensation, training, promotion, transfer, discipline and termination. Section 2. Reasonable Accommodation Policy The City provides employment - related reasonable accommodations to qualified individuals with disabilities within the meaning of the California Fair Employment and Housing Act and the Americans with Disabilities Act. "Reasonable Accommodation" is the adjustment or modification to a job duty, employment practice, or the work environment that makes it possible for a qualified individual with a disability to perform the essential function(s) of the position that they hold or desire. The City will not engage in unlawful retaliation against a disabled individual or individual requesting accommodations (See Article 3.). Subdivision 1. Procedure a. Request for Accommodation An employee who desires a reasonable accommodation in order to perform essential job functions should make such a request in writing to the Human Resources Division. The request must identify: a) the job - related functions at issue; and b) the desired accommodation(s). b. Reasonable Documentation of Disability Following receipt of the request for accommodation, the Human Resources Division will request additional information, such as reasonable documentation of the existence of a disability. C. Fitness for Duty Examination The City may require an employee to undergo a fitness for duty medical examination (and /or inquiry) if it is job related and consistent with business necessity to determine whether the City of Saratoga Personnel Rules and Policies 2 Updated December 2012 309 Article 2. Equal Employment Opportunity, Reasonable Accommodation Policy employee can perform the essential functions of the job with or without accommodation (See Article 15. Fitness for Duty Medical Examinations). Subdivision 2. Interactive Process Discussion The City will consider all applicant or employee accommodation requests and carefully assess all appropriate options before making any decision to grant or deny an accommodation. Furthermore, the City will continue its obligation to consider alternative accommodations if presently implemented accommodations are ineffective. After receipt of reasonable documentation of disability, the City will arrange for an interactive process meeting, in person or via telephone conference call, with the employee, and his or her representatives, if any. The purpose of the discussion is to work in good faith to fully disclose all feasible potential reasonable accommodations. During the meeting, the Human Resources Manager will also disclose, if relevant, alternate available jobs for which the employee is qualified or whether the employee may qualify for a CalPERS disability retirement under the Public Employees' Retirement Law (Government Code § 20000, et seq., the "PERL ") or a family and medical care leave (FMLA) of absence. Subdivision 3. Case -by -Case Determination The City determines, in its sole discretion, whether reasonable accommodation(s) can be made, and the type of accommodation(s) to provide. The City will not provide accommodation(s) that would pose undue hardship upon the City finances or operations, or that would endanger the health or safety of the employee or others. The City will inform the employee of its decision as to reasonable accommodation(s) in writing. City of Saratoga Personnel Rules and Policies 3 Updated December 2012 310 Article 3. Policy Against Harassment, Discrimination and Retaliation ARTICLE 3. POLICY AGAINST HARASSMENT, DISCRIMINATION AND RETALIATION Section 1. Purpose It is the City's intent and the purpose of this Policy to promote a workplace that is free of unlawful harassment, discrimination and retaliation. This Policy prohibits unlawful harassment, discrimination and retaliation as defined by federal and state laws based on an individual's protected characteristics, including but not limited to the following protected classifications as defined by applicable law: race, religion, color, religious creed, gender /sex (including pregnancy, childbirth, and related conditions), transgender, sexual orientation (including heterosexuality, homosexuality and bisexuality), national origin, ancestry, citizen status, marital status, age (40 years and older), medical condition, physical disability, mental disability, (whether perceived or actual), genetic information, and status as a veteran or a member of the uniformed services. This Policy sets forth a procedure for filing a complaint in violation of this Policy and sets forth a procedure for investigating alleged harassment, discrimination and retaliation complaints in violation of this Policy. Retaliation against an individual(s) who has complained, retaliation against anyone associated with the complaining individual because of the complaint, retaliation against an individual(s) for participating in any manner in an investigation into an alleged complaint, and retaliation for opposing practices prohibited by this Policy, or for filing a complaint with, or otherwise participating in an investigation, proceeding, or hearing conducted by, the DFEH or the EEOC is unlawful as provided by applicable law, in violation of this Policy and provides grounds for disciplinary action, up to and including termination. Section 2. Policy The City will not tolerate any conduct that violates this Policy and will take appropriate corrective action to stop inappropriate behavior. Conduct need not rise to the level of a violation of law in order to provide grounds for disciplinary action, up to and including termination. Instead, a single act can violate this Policy and provide grounds for discipline. If an employee is in doubt as to whether or not any particular conduct may violate this Policy, the employee should not engage in the conduct, and seek guidance from management or the Human Resources Manager. Section 3. Policy Coverage As set forth in both State and Federal law, this Policy prohibits applicants, employees, volunteers, officers, officials, and contractors (whom provide services to the City of Saratoga) from harassing or discriminating against others on the basis: (1) of an individual's protected classification under applicable law (see Article 3, Section 1); (2) of the perception that an individual has a protected classification; or (3) the individual associates with a person who is in or is perceived to be in a protected classification. City of Saratoga Personnel Rules and Policies 4 Updated December 2012 311 Article 3. Policy Against Harassment, Discrimination and Retaliation Section 4. Responsibilities of Employees, Management and Supervisory Employees Subdivision 1. Employees In order to establish and maintain a professional working environment, while at the same time preventing unlawful harassment, discrimination, and retaliation, employees are expected to: a. Set an example of acceptable conduct by not participating in or provoking behavior that violates this Policy. People have different ethical values and standards and may be offended by behavior someone else thinks is proper. b. When comfortable doing so, employees should let fellow employees know when their behavior is considered offensive. The City hires people from a wide variety of cultural and ethnic backgrounds, and an individual may not realize behavior he or she thinks is proper could be seen by others as offensive. C. Report harassment, discrimination or retaliation as quickly as possible, whether the employee is the target of the conduct or a witness. d. If an employee observes harassment, he /she should tell the individual being harassed that the City has a policy prohibiting such behavior, and that the individual can demand that the harasser stop the behavior. If the employee is not comfortable doing this, the employee should notify any management employee or the Human Resources Manager or designee. e. Protect confidentiality to the extent possible as required by this Policy. f. Fully cooperate with the City's investigation of complaints made under this Policy and tell the truth to the City's investigator. Subdivision 2. Managers and Supervisors In addition to the responsibilities listed above, managers and supervisors are responsible for the following: a. Implement this Policy by taking all complaints seriously and model behavior that is consistent with this Policy. Direct all complaints to the Human Resources Manager or designee. b. Take positive steps to eliminate and remedy any form of harassment, discrimination or retaliation observed or brought to his /her attention. C. Refrain from retaliating through any action of intimidation, restraint, coercion or discrimination. d. Monitor the work environment and take appropriate action to stop potential Policy violations. e. Follow up with those who have complained to ensure the behavior complained of has stopped. f. Inform complainants of their option to contact the EEOC or DFEH regarding unlawful discrimination, harassment, and retaliation (see Section 6, Subdivision 4 of this Policy). City of Saratoga Personnel Rules and Policies 5 Updated December 2012 312 Article 3. Policy Against Harassment, Discrimination and Retaliation Section 5. Definitions The definitions described in this section define terms used in this policy and establish standards for workplace conduct and are designed to be consistent with the City's goal of creating a non - harassing and professional work environment in compliance with applicable law. Subdivision 1. Protected Classifications See Article 3, Section 1. Subdivision 2. Harassment Harassment includes verbal, physical or visual conduct that creates an intimidating, offensive or hostile working environment or that unreasonably interferes with job performance. Harassment may also include unwelcome, offensive racial or ethnic slurs, jokes, or other similar conduct. Subdivision 3. Sexual Harassment Defined Federal law defines sexual harassment as unwanted sexual advances, requests for sexual favors or visual, verbal or physical conduct of a sexual nature when: (1) submission to such conduct is made a term or condition of employment; or (2) submission to or rejection of such conduct is used as a basis for employment decisions affecting the individual; or (3) such conduct has the purpose or effect of unreasonably interfering with an employee's work performance or creating an intimidating, hostile or offensive working environment. California law defines sexual harassment as unwanted sexual advances or visual, verbal or physical conduct of a sexual nature. This definition includes many forms of offensive behavior. The following is a partial list: (1) Unwanted sexual advances. (2) Offering employment benefits in exchange for sexual favors. (3) Making or threatening reprisals after a negative response to sexual advances. (4) Visual conduct: leering, making sexual gestures, or displaying of sexually suggestive objects or pictures, cartoons or posters. (5) Verbal misconduct: making or using derogatory comments, epithets, slurs, sexually explicit jokes, or comments about an employee's body or dress. (6) Verbal sexual advances or propositions. (7) Verbal abuse of a sexual nature, graphic verbal commentary about an individual's body, sexually degrading words to describe an individual, or suggestive or obscene letters, notes or invitations. (8) Physical conduct: touching, massaging, assaulting, impeding or blocking movements. All conduct described in this section is prohibited. City of Saratoga Personnel Rules and Policies 6 Updated December 2012 313 Article 3. Policy Against Harassment, Discrimination and Retaliation It is unlawful for males to sexually harass females or other males, and for females to sexually harass males or other females. Sexual harassment on the job is unlawful whether it involves co- worker harassment, harassment by a supervisor or manager, or by persons doing business with or for the City. Subdivision 4. Discrimination This Policy prohibits treating individuals differently because of the individual's protected classification as defined by this Policy. There is "disparate treatment" and "disparate impact" discrimination, meaning an employee is treated differently because they are a member of a protected class. Disparate treatment involves employer actions, e.g., promotion or termination that single out an employee because of a protected characteristic. For example, only older workers are laid off or only males are promoted. This type of discrimination often happens because of personal prejudice or dislike. Disparate impact occurs when an employer's rules or practices affect employees differently based on their protected characteristics. This type of discrimination is often proven by statistics. For example, an employer policy of counting all absences and leaves against seniority that has a disproportionate adverse impact on women who have to take time off for pregnancy disabilities. Subdivision 5. Retaliation Retaliation against a person (and his or her associates) because the person has reported or provided information about harassment or discrimination is strictly prohibited. Any act of unlawful retaliation violates this Policy and will result in appropriate disciplinary action, up to and including termination. Examples of actions that might be retaliation against a complainant, witness or other participant in the complaint process include: (1) singling a person out for harsher treatment, (2) lowering a performance evaluation, (3) failing to hire, failing to promote, withholding pay increases, assigning more onerous work, abolishing a position, demotion or discharge, (4) spreading rumors about a complainant, (5) treating negatively, refusing or failing to interact or communicate about work - related issues, or refusing or failing to include an individual in work- related meetings and functions because the individual has reported harassment or discrimination or participated in the complaint process, and /or (6) real or implied threats of intimidation to prevent or discourage an individual from reporting harassment or discrimination or to punish an individual because of a previous report of such concern. Even well- intentioned attempts to insulate or protect a complainant by changing his or her work environment, schedule, or duties may be retaliatory. Before a supervisor takes such action, the supervisor should seek guidance from any management employee, the Human Resources Manager, or designee. City of Saratoga Personnel Rules and Policies 7 Updated December 2012 314 Article 3. Policy Against Harassment, Discrimination and Retaliation Any act of retaliation will be treated as a separate and distinct incident, regardless of the outcome of the harassment or discrimination complaint. Section 6. Reporting of Harassment, Discrimination, or Retaliation An applicant, employee, volunteer, officer, or official who feels he or she has been harassed, discriminated against or retaliated against in violation of this Policy should report the conduct immediately as outlined below so that the complaint can be investigated and resolved quickly and fairly. Contractors are to report harassment to the Human Resources Manager or the City Manager. Complainants involved in the complaint process may be represented by a person of their choosing, union representative, or attorney, at the complainant's expense. Subdivision 1. Objection to the Conduct If comfortable doing so, a person who believes he /she is being harassed is encouraged to first use the informal and direct approach by informing the offending person that his /her conduct or language is offensive and unwelcome and request the offending person to discontinue his /her offensive conduct or language immediately. Sometimes an offending person is unaware that his /her conduct is offensive and using the informal and direct approach is the solution. However, if this approach is utilized and unsuccessful and the conduct in question continues or if the person who believes he /she is being harassed is not comfortable using the informal and direct approach with the offending person, the person should make a report in accordance with Subdivision 2 and /or 3 below, or go directly to the formal reporting process. Subdivision 2. Oral Report If a person believes that this Policy has been violated and does not want to confront the offending person, he /she should report the conduct to any management employee. Any management employee who receives such a report must in turn direct it to the Human Resources Manager or designee. Subdivision 3. Written Complaint An individual who believes this Policy has been violated and does not feel comfortable using the process outlined above is to provide a written confidential complaint in the form of a memo or email to any management employee, who in turn must direct the complaint to the Human Resources Manager or designee. Subdivision 4. Option to Report to Outside Administrative Agencies While the City encourages individuals to report all concerns to the City to allow the City to take prompt and appropriate corrective action, applicants, employees, volunteers, officers, and officials have the option to report harassment, discrimination, or retaliation to the U.S. Equal Employment Opportunity Commission (EEOC) or the California Department of Fair Employment and City of Saratoga Personnel Rules and Policies 8 Updated December 2012 315 Article 3. Policy Against Harassment, Discrimination and Retaliation Housing (DFEH). These governmental agencies offer legal remedies and a complaint process. The nearest offices are listed in the government section of the phone book as well as on the posters located on City bulletin boards. Section 7. City's Response to Complaint of Harassment, Discrimination, or Retaliation Subdivision 1. Investigation Upon receipt of a complaint of alleged harassment, discrimination or retaliation, the Human Resources Manager or designee will be responsible for determining the type of investigation and coordinating the investigation (unless the Human Resources Manager or designee is named in the complaint, in which case City Manager or designee will coordinate the investigation, unless the City Manager or designee is named in the complaint, in which case the City Attorney or designee will coordinate the investigation, in which case the Human Resources Manager references below will mean the investigation coordinator). The Human Resources Manager or designee may coordinate the investigation with the complainant's department director(s) and may hire an outside investigator if the City deems appropriate. The type of investigation undertaken and the party chosen to conduct the investigation will depend on the nature of the complaint made and shall be determined by the Human Resources Manager or designee. The Human Resources Manager or designee or the City Manager or designee, or the City Attorney or designee if the City Manager is named in the complaint, may take interim action to address the allegations and special circumstances, such as placing the alleged accused on paid administrative leave. No interim action should be taken to change the complainant's working conditions unless the complainant voluntarily requests and /or consents to the temporary change. Internal investigations typically fit into two categories, informal investigations and formal investigations, which are dictated by circumstances and at the discretion of the investigator. The investigator will review the complaint allegations in an objective manner and to the extent that the City deems necessary. The investigation will normally include interviews with the reporting individual (complainant), the accused, and any other person who is believed to have relevant knowledge concerning the allegations. The investigator will remind all witnesses to maintain the confidentiality of the content of the interview and not to retaliate against those who report alleged harassment or who participate in the investigation. The City takes a proactive approach to potential Policy violations and will conduct an investigation if any management becomes aware that harassment, discrimination or retaliation may be occurring, regardless of whether or not the City of Saratoga Personnel Rules and Policies 9 Updated December 2012 316 Article 3. Policy Against Harassment, Discrimination and Retaliation recipient of the alleged conduct or a third party reports a potential violation of this Policy. Subdivision 2. Remedial and Disciplinary Action If the investigation determines that the alleged conduct occurred and that the conduct violated this Policy, the City will notify the complainant and accused of the general conclusion(s) of the investigation and take effective remedial action that is designed to remedy the impact on the complainant and end the violation(s). Any employee or officer determined to have violated this Policy will be subject to disciplinary action, up to and including termination. Disciplinary action may also be taken against any official, supervisor or manager who condones or ignores potential violations of this Policy, or who otherwise fails to take appropriate action to enforce this Policy. Any official or contractor found to have violated this Policy will be subject to appropriate sanctions. Subdivision 3. Confidentiality Every possible effort will be made to protect the confidentiality of complaints made under this Policy. Complete confidentiality cannot occur, however, due to the need to fully investigate potential Policy violations and take effective remedial action. An individual who is interviewed during the course of an investigation is prohibited from discussing the substance of the interview, except with a representative for the employee such as an exclusive representative or as otherwise directed by a supervisor or the Human Resources Manager or designee. Any individual who discusses the content of an investigatory interview will be subject to discipline, up to and including termination. Subdivision 4. Investigation Report The City will not disclose a completed investigation report except as it deems necessary to support a disciplinary action, to take remedial action, to defend itself in adversarial proceedings, or to comply with the laws or other legal requirements. City of Saratoga Personnel Rules and Policies 10 Updated December 2012 317 Article 4. Employee Recruitment, Selection and Appointment ARTICLE 4. EMPLOYEE RECRUITMENT, SELECTION AND APPOINTMENT Section 1. Policy It is the policy of the City of Saratoga to recruit and select the most qualified persons for positions in the City's service. Recruitment and selection shall be conducted in a manner in accordance with the City's hiring process that will ensure open competition, provide equal employment opportunity, and prohibit discrimination or favoritism on the basis of any of the protected classifications under applicable law. (See Article 3, Section 1.) Section 2. Department Hiring Procedures Subdivision 1. Department When a department has a staffing requirement, a memorandum ( "justification memo ") is prepared by the department director for City Manager approval and sent to the Human Resources Division. The memo should include the following essential information: 1. Preferred date the position is filled. 2. Job title and type of position — regular or temporary and full -time or part -time. If the position is temporary, include the start and end date of the temporary assignment. 3. Confirmation that the position is within the currently adopted budget. No positions will be approved for recruitment that is not included in the currently adopted budget. Any modifications in positions (e.g. reclassifications due to reorganization (excluding alternately staffed positions)) require City Council authorization through a mid -year budget adjustment. 4. Job description changes /updates, if applicable. If a job description needs to be updated, the Human Resources Division will coordinate with the hiring department and update it prior to job posting. 5. Suggestions /recommendations for ad placement based on the position's area of the job market (e.g. City Manager, Western Cities monthly magazine or website; Human Resources Manager, NORCAL Municipal Human Resources Managers Group website). 6. Recommendation of potential subject matter experts and /or co- workers to serve as interview panel participants. Section 3. Job Posting When a request to fill a vacancy has been approved by the City Manager, the following procedure shall be followed: Job announcements will be posted in places available to the general public and all City employees. Postings will include pertinent job information, including minimum qualifications and salary range. Any tests and /or skill assessments will be communicated to the applicants as part of the recruitment process. All City job descriptions are posted on the City's public website and available to applicants for review. City of Saratoga Personnel Rules and Policies 11 Updated December 2012 318 Article 4. Employee Recruitment, Selection and Appointment Job announcements shall be posted for not less than five (5) business days for internal and /or external recruitments. This period of time may be waived by the City Manager for emergency placements. Section 4. Application Form All applications for employment shall be made on forms prescribed by the Human Resources Division. Section 5. Application Submittal All applications and supplemental material such as cover letter, resume, etc. shall be submitted to the Human Resources Division. Section 6. Resection of Applicants All applications and supplemental material such as cover letter, resume, etc. are carefully reviewed by the Human Resources Division. An applicant may be rejected if he /she: 1. Does not meet the minimum qualifications for the position. 2. Has falsified an application or resume. (Employees who violate or have violated this section shall be subject to disciplinary action, up to and including dismissal.) 3. Is unable to perform the essential functions of the position, with or without reasonable accommodations. 4. Has been convicted of a crime that renders him /her unqualified for the position to which he /she has applied. 5. Is less than 18 years of age if being considered for Regular Full -time or Part -time employment. 6. Has established an unsatisfactory employment record. 7. Advocates the overthrow of the government of the United States by force or violence. 8. Submitted an application after an announcement closed or submitted an application for an unannounced position. 9. Submitted an incomplete application and /or failed to provide copies of documents cited in the job announcement prior to a final decision on hiring. 10. Could not submit written documentation in accordance with federal legislation, verifying identity and right to work in the United States of America. Section 7. Selection Subdivision 1. Application Review Process The intent of the application review process is to maximize reliability, objectivity, and validity through a practical and job - related assessment of whether the applicant meets the minimum qualifications required for the position. Subdivision 2. Selection Method The Human Resources Division, in consultation with the hiring department, shall be responsible for determining valid selection methods to obtain the most qualified candidate for each vacancy. City of Saratoga Personnel Rules and Policies 12 Updated December 2012 319 Article 4. Employee Recruitment, Selection and Appointment Applicants invited for interview or employment testing can request reasonable accommodations for a disability for the employment testing processes by contacting a representative within the Human Resources Division. The Human Resources Division shall make a decision regarding the reasonableness of the accommodation request, and if approved, take the necessary steps to insure the accommodation is provided. If the request is not approved, the Human Resources Division shall inform the applicant of the reason for denial of the requested accommodation, in writing, within three (3) working days of the decision. Subdivision 3. Security Selection material shall be confidential. Every precaution shall be taken by all persons participating in the development and maintenance of selection materials to maintain the highest level of integrity and security. Subdivision 4. Nepotism Prohibited Any supervisor or manager who is in a position to recommend employment or promotion of a relative (as defined by the City's Employment of Relatives policy, Article 17 of these rules) shall advise his /her immediate supervisor, and withdraw from the selection process. Any employee asked to participate in a selection process where a relative (as defined by the City's Employment of Relatives policy, Article 17 of these rules) is an applicant, shall immediately inform the hiring supervisor of their conflict of interest and withdraw from the selection process. Subdivision 5. Pre - selection Prohibited No City employee will promise job appointments to any person. All inquiries regarding vacancies should be referred to the Human Resources Division. Subdivision 6. Education and Experience Substitutions All internal and external candidates seeking employment must meet the minimum qualifications outlined in the relevant job announcement. Should a job posting yield an insufficient pool of qualified candidates, the Human Resources Division in collaboration with the hiring department /section will determine whether to re -post the position or review applicant substitutions for education and /or experience. a. Substitution of Experience for Education: Unless otherwise specified, One (1) year of relevant experience may be substituted for each year of required education. Relevant experience equips the applicant with the particular knowledge, skills, and abilities to perform successfully the duties of the position and is typically in or related to the work of the position to be filled. (1) For example, if a position requires a Bachelor's degree in Public Administration and an applicant has no college credits, four years of professional -level relevant experience may substitute City of Saratoga Personnel Rules and Policies 13 Updated December 2012 320 Article 4. Employee Recruitment, Selection and Appointment for a Bachelor's degree. If a position requires a Master's degree and an applicant has neither a Bachelor's degree nor Master's degree, six (6) years of relevant experience may be substituted for the required education. b. Substitution of Education for Experience: Unless otherwise specified, one (1) year of relevant education at the undergraduate level may be substituted for one year of required experience. Relevant education equips the applicant with the particular knowledge, skills, and abilities to perform successfully the duties of the position and is typically in or related to the work of the position to be filled. (1) For example, if a position requires two years of experience as an Accounting Technician, 60 credit hours of relevant study toward a Bachelor's degree in Accounting may be substituted for the two year experience requirement. Credit for one year of experience will be given for each year of (18 credit hours) relevant education above the Bachelor degree level. For example, if a position requires six (6) years of experience, a Master's degree may be substituted for the required experience. Relevant courses may be substituted for experience, provided an applicant submits a statement identifying the course for which they wish to be credited. c. Level of Experience: Only related and relevant professional level experience will be credited for professional positions. Professional level experience involves work that is intellectual and varied in nature, requires advanced knowledge and education, and the exercise of discretion and judgment. Non - professional level experience may not be substituted for the required professional level experience. In certain instances, non - professional experience may be substituted for educational requirements when the applicant pool does not contain applicants who meet the minimum requirements of the position. Supervisory level experience will be credited if the experience involves supervision of one or more full -time positions. Supervisory experience involves work in which one has the authority to conduct performance evaluations, approve requests for leave, and make recommendations regarding hiring, termination or other decisions affecting the employment status of others. d. Non - Allowable Substitutions City of Saratoga Personnel Rules and Policies 14 Updated December 2012 321 Article 4. Employee Recruitment, Selection and Appointment For professions that require a college degree in order to obtain a license or certification to practice within the discipline, experience cannot serve as a substitute for education. Subdivision 7. Final Candidate Selection 1. The Human Resources Division conducts professional employment reference checks, coordinates criminal background check, and if applicable, DMV report, and credit report. 2. The Human Resources Division sends out official letter of employment offer authorized by the City Manager. 3. The Human Resources Division notifies the candidates interviewed but not selected following notification that the recommended hire has been approved and has accepted the position. Section 8. New Hire Probation Prior to the completion of the new hire probation period (12 months), management shall decide whether or not to recommend continued employment. If the decision is to discontinue employment, the incumbent shall be separated. If a decision is made to continue employment, a Personnel Action Form shall be prepared by the Human Resources Division for the hiring section's authorization changing the incumbent from probationary status to regular status. Section 9. Immigration Law Compliance In compliance with the Immigration Reform and Control Act of 1986, each new or rehired employee, as a condition of employment, must complete the Employment Eligibility Verification Form 1 -9 and present documentation establishing identity and employment eligibility. An employee whose work authorization documents may expire is responsible for keeping current such documents. Section 10. Employee Orientation New Employee. New employees shall receive a new employee orientation from the Human Resources Division upon beginning City service. 1. Supervisor. Each Department Director will ensure that the department to which the new employee is to be assigned makes provisions for the director or a supervisor to be available for specific orientation of the new employee regarding department functions, responsibilities, and unique requirements of the department in addition to providing the new employee a walking tour of City facilities including introductions of the new employee to staff throughout the organization. City of Saratoga Personnel Rules and Policies 15 Updated December 2012 322 Article 5. Employee Status ARTICLE 5. EMPLOYEE STATUS Section 1. FLSA - Exempt Employee An employee who meets one or more of the duties test exemptions from overtime under the FLSA (e.g. executive, administrative, professional, and specified computer employees) and who is paid on a salary basis, meaning that he or she is compensated in a predetermined amount that is not reduced, regardless of the quality or quantity of work actually performed, except as required by the City's principles of public accountability for partial -day absences. Section 2. FLSA Overtime - Eligible Employee An employee who is entitled to FLSA overtime, regardless of whether paid on a salary or hourly basis will be paid overtime in compliance with law. A non - exempt employee assigned to an FLSA- exempt position on an acting or temporary basis remains overtime - eligible. Section 3. At -Will Employee "At- will" refers to any City employee who: (1) does not hold regular status, (2) serves at the pleasure of the City Council or City Manager, and (3) can be terminated at any time with or without cause and with or without notice and without the right of procedural due process, appeal, grievance, or hearing. Employees who move from a "regular" employment status to an at -will position will be required to sign a notification and acknowledgment of at -will employment as a condition of employment. Section 4. Probationary Employee An employee who is serving a probationary period. The probationary period is part of the selection process. Unless otherwise authorized by the City Manager, probation is a twelve (12) month trial period during which a determination is made as to whether or not an employee is suitable for their position. A new employee serves "at will" and can be dismissed with or without cause by the City for any reason that is not unlawful during the probationary period. This section does not apply to at -will employee status described in Article 5. Employee Status, Section 3. At -Will Employee. Section 5. Length of Probation Unless otherwise specified by an applicable memorandum of understanding with an exclusive representative or these Policies, the probationary period is twelve (12) months of actual and continuous City service. Subdivision 2. Separation Without Cause At any time during the probationary period, the employment relationship may be terminated without cause and without right of appeal, grievance or hearing. The City Manager or designee must approve the termination. The probationary employee shall be notified prior to the expiration of the probationary period that he or she has been rejected for regular appointment. Subdivision 3. Regular Appointment Requires Passing Probationary Performance Review An employee will receive a regular appointment only City of Saratoga Personnel Rules and Policies 16 Updated December 2012 323 Article 5. Employee Status when he /she receives a "meets expectations" or above rating on his /her written probationary performance review, resulting in the passing of the probationary period. If the employee does not meet the expectations for the probationary period, he /she will be rejected for regular appointment. Section 6. Regular Employee An employee who: (1) is regularly scheduled to work on a continuing basis; and (2) has completed the probationary period for the position he or she holds, and (3) holds a budgeted position which the City Council has authorized the providing of health and welfare benefits. Health and welfare benefit contributions paid by the City are based on the City Council authorized full -time equivalent (1.0 FTE) position (work week of forty (40) hours). Health and welfare benefit contributions by the City are prorated for City Council authorized positions less than 1.0 FTE. Section 7. Full -Time Employee An employee who is regularly scheduled to work forty (40) hours per work week. Section 8. Part -Time Employee An employee who is regularly scheduled to work less than full -time. Section 9. Temporary, Provisional or Seasonal Employee An employee who is assigned to work on a particular project or for a job of limited or indefinite duration is a temporary employee. A temporary employee: (1) does not hold regular status, (2) does not serve a probationary period, (3) can be dismissed at- will from City employment at any time without right of procedural due process, appeal, grievance or hearing, and (4) is not entitled to earn, accrue, or participate in any City health and welfare benefits, accrue Paid Time Off (PTO) or other paid leaves, or receive any other benefits afforded to regular position appointments. City of Saratoga Personnel Rules and Policies 17 Updated December 2012 324 Article 6. Employee Benefits ARTICLE 6. EMPLOYEE BENEFITS The City of Saratoga currently offers the benefits listed below. For a detailed description of these benefits, employees should refer to the summary plan documents distributed by the individual plan providers. In the event of a conflict between the terms contained in the summary plan documents and the information provided in this Policy, the summary plan documents will govern. Section 1. Discretionary Benefits All regular City employees, who are scheduled to work at least 40 hours per work week are eligible for the following benefits. The City's contribution of benefits for regular part -time employees and full -time employees working less than 40 hours per work week will be prorated in proportion to the number of hours worked or accrued leave hours paid as compared to 40 hours per work week. The employee must pay the amount above the City contribution. Subdivision 1. Health Insurance The City contracts with the California Public Employees Retirement System for the PERS health benefits program which includes Kaiser Permanente and Blue Shield Health Maintenance Organization (HMO) plan options and Preferred Provider Organization (PPO) plan options, PERS Choice, PERS Select, or PERS Care through Anthem Blue Cross. Employees may enroll in the plan of their choice; however, some plans require that an employee live within a specific geographic area. The effective date of health coverage is the first day of the month following the employee's date of hire. The currently contracted health plans, premium amounts and City contribution, and cash in -lieu payment information is available from the Human Resources Division. City contribution amounts and cash in -lieu payments are prorated based on Full Time Equivalent (FTE) (40 hours per work week). If an employee and spouse are both City employees, only one employee is allowed to be the employee enrollee for health coverage. One employee may choose to enroll in the applicable coverage (employee +1 dependent or family coverage) and the other employee must waive their health plan coverage and be enrolled as a dependent. The enrolled dependent is not eligible for the cash in- lieu payments. The cash in -lieu payment is not an option for married couples or domestic partners (pursuant to Family Code sections 297, et seq.) employed with the City. Subdivision 2. Dental Insurance The currently contracted dental plan, premium amounts and City contribution information is available from the Human Resources Division. Cash in -lieu payments are made to employees who City of Saratoga Personnel Rules and Policies 18 Updated December 2012 325 Article 6. Employee Benefits do not elect dental insurance coverage, and are prorated base on Full Time Equivalent (FTE) (40 hours per work week). The effective date of dental coverage is the first day of the month following the employee date of hire. The cash in -lieu payment is not an option for married couples or domestic partners employed with the City. Subdivision 3. Deferred Compensation (457 Plan) and Roth IRA (Individual Retirement Arrangement) The City provides employees the opportunity to contribute toward an IRS Section 457 deferred compensation plan and /or Roth IRA managed by a third party plan administrator. Employees may contribute an amount up to a federally mandated maximum per calendar year on a pre -tax basis for the 457 deferred compensation plan and on a post -tax basis for the Roth IRA. Subdivision 4. Retirement Plan The City is a contracting agency of the California Public Employees Retirement System (PERS). Regular employees become members immediately upon employment and become vested after five (5) years of service. The City pays the City's contribution as a contracting employer. For employees hired before May 12, 2012, the City through its contract with PERS provides for retirement benefits of 2% at 55 (effective September 1, 1999), one year final compensation (average full -time monthly pay rate for the highest 12 consecutive months), optional purchase of service credit at retirement using unused Paid Time Off, 1959 survivor benefits (Level 3) if death occurs prior to retirement and after retirement, and continuance of benefits to employee's survivor. The descriptions of benefits can be found in the "PERS Benefits for Local Miscellaneous Members ". For employees hired on or after May 12, 2012, the City provides a 2% at 60, 3 -year average compensation (highest average annual compensation earnable by a member during the three consecutive years of employment immediately preceding the effective date of his or her retirement). Subdivision 5. Short Term Disability Insurance The City will pay 75% of an employee's salary based on the employee's full -time equivalent position (e.g. 1.0, .75., .60), including 75% prorated holiday pay, and maintain the City's contribution for existing insurance benefits coverage, subject to family and medical leave laws employee eligibility requirements (See Article 13, Section 3, Subdivision 11), for an employee on a disability leave, for six months from the date of the employee's qualifying injury or illness, unless provided otherwise by an applicable MOU. Employee's on disability who have exhausted their family and medical leave law eligibility are 100% responsible for the continuation costs of insurance benefits coverage through COBRA (See Article 6. Section 2. Subdivision 3.). City of Saratoga Personnel Rules and Policies 19 Updated December 2012 326 Article 6. Employee Benefits Short term disability payments will commence only after 12 continuous working days based on the employee's assigned work schedule (including Off Fridays of an authorized 9/80 work schedule, holidays and furlough days), during which the employee is totally disabled, or only after all of the employee's accrued paid time off is exhausted, whichever is later. Short term disability payments are reported to PERS as salary earned. An employee on short term disability leave is entitled to accrue Paid Time Off (PTO) within the six (6) month period after the date of injury or illness while on paid status as a result of using accrued (PTO). The accrual of PTO shall be prorated based on the number of hours of PTO that is being utilized by the employee. Upon exhaustion of all accrued PTO, an employee on short term disability leave shall no longer accrue paid time off. In other words, while an employee is receiving the short -term disability payment of 75% of his /her full salary; the employee will not accrue paid time off. (See Article 6, Section 3, Subdivision 2). In the event the employee remains on short term disability for six (6) months, the City provides a long term disability plan benefit through a third party administrator as described below. Subdivision 6. Long Term Disability Insurance The City provides a long term disability plan benefit through a third party administrator to provide an employee with income protection of short term disability described above. The group insurance policy will cover 66 2/3% of the employee's monthly base salary up to a maximum of $2,000 per month. Long -term disability benefits will be reduced for income received through social security, workers' compensation and /or California State Disability Insurance (SDI). Employee's whose salaries exceed $3,000 monthly are eligible to purchase additional long term disability insurance for 66 2/3% of monthly base salary up to a salary maximum of $8,200 per month; however, availability of the plan is subject to the carrier's minimum requirement of ten (10) enrollees. Employees on long term disability are 100% responsible for the continuation of insurance benefits coverage through COBRA (See Article 6. Section 2. Subdivision 3.). Subdivision 7. Life Insurance and Accidental Death Insurance The City offers basic life and accidental death insurance benefits through a third party administrator. Each is covered at $50,000 for non - management employees, $100,000 for mid - management and $150,000 for management employees. If an employee dies with a qualifying accidental death, the beneficiary would receive both the life coverage and the accidental death coverage. City of Saratoga Personnel Rules and Policies 20 Updated December 2012 327 Article 6. Employee Benefits Subdivision 8. Employee Assistance Program Counseling services are available to employees and their immediate family through a third party administrator. Programs include personal financial management, stress management, marital and related domestic issues, drug or alcohol dependency, and other personal and work - related issues. Subdivision 9. Flexible Medical Spending Plan Under Section 125 of the Internal Revenue Code, the employee may divert, on a pre -tax basis, up to a federally prescribed maximum of wages per year into a Medical Flexible Spending Account for eligible out -of- pocket medical and dental expenses. The City offers this program through a third party administrator. Subdivision 10. Dependent Care Spending Plan Under Section 125 of the Internal Revenue Code, the employee may divert, on a pre -tax basis, up to a federally prescribed maximum of wages per year into a Dependent Care Flexible Spending Account for eligible out -of pocket dependent care expenses. The City offers this program through a third party administrator. Subdivision 11. Tuition Reimbursement Regular employees of the City who have been employed continually for at least 12 months prior to commencement of an approved or required course are eligible for the City's tuition reimbursement program. a. Coursework for Degree or Certificate - If the course(s) taken is /are job related or in fulfillment of the requirements for a degree or certificate, one - hundred percent (100 %) reimbursement will be afforded for tuition, fees and books by the CITY up to a maximum of one thousand dollars ($1,000) per employee per fiscal year. The Department Head and City Manager will determine job - relatedness. b. Coursework for Professional Development - If the course(s) is /are not specifically related to the employee's current position, and does not fulfill the requirements for a degree or certificate, but does provide for professional development related to the worker's position of employment or a higher position in the CITY, reimbursement will be afforded for tuition, fees and books by the CITY at one - hundred percent (100 %), up to a maximum five hundred dollars ($500) per employee per fiscal year. Reimbursement will be afforded after successful completion of the course(s) requirements. Successful completion is defined as a "C" grade or a "Pass" on a pass -fail system. Section 2. Legislated Benefits The following benefits are mandated by law and apply to all City employees: City of Saratoga Personnel Rules and Policies 21 Updated December 2012 328 Article 6. Employee Benefits Subdivision 1. Workers' Compensation Workers' Compensation is a no- fault, benefit delivery system which compensates employees who are injured at work. The City participates in a self- funded Workers' Compensation Shared Risk Pool (SHARP). An employee who is injured or becomes ill as a result of work performed for the City is entitled to leave without pay for all or part of the period during which the employee receives temporary disability payments under the California Workers' Compensation Act. When appropriate, the City will designate absences due to occupational injury or illness as Family and Medical Leave. Leave for a work - related injury or illness may run concurrently with other types of leaves, such as Family and Medical Leave. An employee receiving workers' compensation may use accrued Paid Time Off (PTO) or earned Administrative Leave to supplement income received under the California Workers' Compensation Act to reach the equivalent of his /her full salary. An employee on leave without pay who is receiving temporary disability payments under the California Workers' Compensation Act does not accrue paid time off as if on pay status. Workers' compensation insurance provides five basic benefits: • Medical care: Paid for by the City through its third party claims administrator to help the employee recover from an injury or illness caused by work • Temporary disability benefits: Payments if the employee loses wages because the injury prevents them from doing their usual job while recovering. As a general rule, an employee is paid two - thirds of their gross (pre -tax) wages at the time of injury, with minimum and maximum rates set by CA State Law. Temporary disability payments begin when the doctor says the employee can't do his or her usual work for more than three days or he or she gets hospitalized overnight. • Permanent disability benefits: Payments if the employee doesn't recover completely • Supplemental job displacement benefits (if the employee date of injury is in 2004 or later): Vouchers to help pay for retraining or skill enhancement if the employee doesn't recover completely and doesn't return to work for the City • Death benefits: Payments to the employee's spouse, children or other dependents if employee dies from a job injury or illness. Subdivision 2. Unemployment Insurance Compensation The State Unemployment Insurance program, paid by the City, provides partial City of Saratoga Personnel Rules and Policies 22 Updated December 2012 329 Article 6. Employee Benefits income replacement to employees who become unemployed if determined eligible by the Employment Development Department (EDD) to receive benefits. Subdivision 3. Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) A federal health Insurance law that requires employers to offer employees and their covered family members continued participation in employer's group health insurance program, at special rates, following a "qualifying event." Subdivision 4. Health Insurance Portability and Accountability Act (HIPAA) A federal law that limits the circumstances under which medical coverage may exclude pre- existing medical conditions and protects the privacy of certain health - related information. Subdivision 5. Break Time For Nursing Mothers Section 7 of the Fair Labor Standards Act ( "FLSA ") requires employers to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the child's birth each time such employee has need to express the milk. The City is committed to providing a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk. Section 3. Paid Time Off (PTO) The City provides Paid Time Off (PTO), also referred to as annual leave, benefits to regular full -time employees for the purpose of rest, relaxation, and interruptions from the workplace including vacation, illness, caring for children, school activities, medical /dental appointments, personal business, or emergencies. The City encourages employees to take time off in order to receive the personal replenishment value intended. All use of PTO is to be scheduled in advance and approved by a supervisor except in the case of illness or an emergency. PTO must be taken by exempt employees only in increments of one (1) hour or more in a workday. For example, when the employee leaves work for 1 or more hours early to take care of personal business. PTO must be taken by non - exempt employees only in increments of 15 minutes (.25) or more in a workday. For example, when the employee leaves work for 15 minutes or more minutes early to take care of personal business. Subdivision 1. Eligibility All regular full -time employees are eligible to take and /or accrue paid time off based on their continuous length of service, measured from the date of hire. Continuous length of service is defined as service that is uninterrupted by termination of employment and subsequent rehire by the City. A leave of absence for legally protected reasons may not constitute a break in service when the law specifies that result. City of Saratoga Personnel Rules and Policies 23 Updated December 2012 330 Article 6. Employee Benefits Subdivision 2. Paid Time Off (PTO) Accrual The amount of PTO earned each calendar year is based on the employee's continuous length of service. PTO hours are calculated as earned on a bi- weekly accrual schedule. All PTO hours are based on compensated work hours. Therefore, PTO accruals for regular part -time employees scheduled to work less than 40 hours per week, as well as employees on a voluntary reduced work schedule shall be prorated accordingly. Employees will not accrue PTO hours while on unpaid status, (e.g., Short Term Disability (STD), Long Term Disability (LTD)), unless otherwise required by applicable law. Subdivision 3. Paid Time Off (PTO) Accrual Schedule for Full - Time Employees The accrual rates and maximum accrual of hours is the amount stated in the employee groups MOU or the below amount for employees whose amount is not specified in an MOU or for employees who are not governed by an MOU (unrepresented employees). Years of Service Days Accrued Hours Accrued Maximum Accrual Hours Years 0 thru 5 22 176 600 After 5 years 27 216 600 After 10 years 32 256 600 Subdivision 4. PTO Upon Termination Upon separation from City service, the City will pay 100% of the employee's accrued paid time off (up to the 600 hours accrual maximum or the applicable MOU's specified maximum for accrual of PTO hours) at the employee's regular rate of pay. When an employee voluntarily resigns from employment, no paid time off may be used between the time the notice of resignation is given and the employee's last day of work, unless authorized in a written document signed by the City Manager. Subdivision 5. Payout at Retirement Upon retirement from City service, an employee may choose to use their accrued paid time off for the purpose of obtaining additional service credit under PERS. An employee may choose to use all of his /her accrued paid time off as sick leave for service credit. If an employee chooses to apply less than 100% of his /her accrued paid time off toward PERS service credit, the City will pay 100% of the employee's remaining accrued paid time off at the employee's regular rate of pay. Section 4. Administrative Leave Administrative Leave is compensated time off given to regular, full -time exempt employees of the City. This leave shall be taken in a manner consistent with PTO. Use of administrative leave is a privilege and is provided in recognition that City projects often require employees to devote whatever hours are necessary, irrespective of a regular scheduled workweek, to fulfill the obligations of the job. Employees are granted a specific City of Saratoga Personnel Rules and Policies 24 Updated December 2012 331 Article 6. Employee Benefits number of hours per fiscal year, specified in each MOU. Administrative Leave must be taken by exempt employees in increments of one hour or more in a workday. For example, where the employee leaves work for an hour early to take care of personal business. Administrative Leave must be exhausted prior to using PTO. City of Saratoga Personnel Rules and Policies 25 Updated December 2012 332 Article 7. Performance Evaluations ARTICLE 7. PERFORMANCE EVALUATIONS Section 1. Frequency Supervisors are authorized to evaluate a subordinate's performance as often as the supervisor deems appropriate _ _however, employee performance will be evaluated at least one time each year. Section 2. Process The evaluation of an employee's performance is an ongoing process. Evaluations must be documented in writing. The supervisor(s) will review the evaluation in a private meeting with the employee. The employee shall sign the performance evaluation to acknowledge that the employee is aware of its contents and has discussed the evaluation with his or her supervisor. The employee's signature on the evaluation does not necessarily indicate agreement with its contents. The employee will receive a copy of the evaluation after the meeting with the supervisor(s) and a copy of the evaluation will be placed in the employee's personnel file. Section 3. No Appeal An employee does not have the right to appeal any matter relating to a performance evaluation. Instead, the employee may comment on the evaluation in a written statement which will then be placed with the evaluation in the employee's personnel file. The written statement must be signed by the employee and provided to the Human Resources Division within 30 days of the evaluation meeting. City of Saratoga Personnel Rules and Policies 26 Updated December 2012 333 Article 8. Personnel Files and Reference Requests ARTICLE 8. PERSONNEL FILES AND REFERENCE REQUESTS Section 1. File Maintenance The Human Resources Division maintains a personnel file for each City employee. Personnel files are the property of the City, and access to files is restricted as stated in this section. Section 2. File Content The personnel file contains information including an individual's: 1) employment application, personal emergency contact information, promotions, demotions, transfers, salary, performance evaluations, disciplinary actions, work history, status and tenure, etc. The personnel file also provides a basis for the decision - making in personnel actions and operations and assists the City in personnel administration. Section 3. Employee's Responsibility to Notify City of Changes Each employee is responsible for promptly notifying in writing the department director and the Human Resources Division of any changes in relevant personal information, including change of name, mailing address, telephone number, emergency contacts, and number and names of dependents (including changes in dependents based on marriage, birth, separation and divorce.) Section 4. Medical Information "Medical information" means any information that identifies the employee and pertains to his or her medical history, mental or physical condition, or medical treatment. All employees' medical information shall be kept in separate, secure (locked) confidential files. Section 5. Access to Personnel Files Subdivision 1. City Employees A City employee may review his or her personnel file at reasonable times and intervals. An employee who wishes to review his or her file must contact the Human Resources Manager to arrange for an appointment with the Human Resources Division. The review will be conducted in the presence of a Human Resources Division designee. An employee, upon request, is entitled to receive a copy of any employment - related document he or she has signed. Subdivision 2. Employee Representatives An exclusive bargaining representative (meaning a representative of the employee's bargaining organization) may inspect an employee's personnel file without the employee only if the employee has provided written consent. Subdivision 3. City Management or Confidential Personnel The City Manager, City Attorney and legal representatives, Human Resources Manager and department head are authorized to access personnel files as part of their job as needed for legitimate personnel administration purposes. Confidential personnel assistants may access personnel files as required by their City of Saratoga Personnel Rules and Policies 27 Updated December 2012 334 Article 8. Personnel Files and Reference Requests job duties. Those who are authorized to access personnel files are required to maintain the confidentiality of personnel file information. Subdivision 4. Confidential Material Notwithstanding any of the above, neither an employee nor an exclusive bargaining representative may have access to: (1) documents that pertain to pending investigations regarding the employee's conduct; or (2) references and related information given in confidence as part of the City employment application or promotion process. The City will not disclose employee medical information without prior written authorization from the employee, except to City management personnel and City legal representatives with a legitimate personnel need for access and except as required by law, subpoena, or Court order. Section 6. Destruction of Personnel Records Personnel records, including employment applications, shall be destroyed only in accordance with the City's retention schedule and applicable state and federal law. Section 7. Employment Reference Requests All requests for employee references shall be referred to the Human Resources Division. Information will be released as authorized in writing signed by the employee or former employee if the authorization is legally sufficient. If there is no legally sufficient written authorization, the City will release only the following information: the employee's beginning and end dates of employment, title, and salary upon departure from City employment. City of Saratoga Personnel Rules and Policies 28 Updated December 2012 335 Article 9. Transfer, Reinstatement, Resignation and Job Abandonment ARTICLE 9. TRANSFER, REINSTATEMENT, RESIGNATION AND JOB ABANDONMENT Section 1. Transfer A transfer is the reassignment of an employee from one position to another, to the same or a different classification that has the same or similar maximum salary range, involves similar duties, and requires substantially similar minimum qualifications. A transfer may be involuntary or voluntary. Subdivision 1. Voluntary Transfer A regular employee with an overall "meets expectations" or better rating on their evaluations and no disciplinary actions in the past year may submit a written request to the Human Resources Division to transfer to another position in the same or lower classification for which the employee is qualified. The request will be retained for one year after its receipt. With the approvals of the department director over the current and prospective positions, the employee may be transferred to the new position when the first vacancy becomes available. Subdivision 2. Involuntary Transfer A department director(s) may involuntarily transfer an employee at any time and for any non - disciplinary reason. An employee so transferred has no right of appeal. As an example, an involuntary transfer may occur when the operational needs and demands of one division increase or change, thereby necessitating the transfer in of personnel from another division. Section 2. Reinstatement A regular employee who has resigned, or has otherwise been separated while in good standing, may be considered for reinstatement, upon recommendation of the department director and approval of the City Manager, to a position in the former employee's classification. Reinstatement is at the City's sole discretion. An individual requesting reinstatement will be required to apply, pass a medical and /or psychological examination and any other qualifying tests or procedures as in the case of a new employee. Reinstated employees are paid at the salary range and step held at the time of resignation or separation. A reinstated employee shall serve a probationary period as defined in these Policies. Credit will be granted for prior service for purposes of PTO accrual rates. Section 3. Resignation Resignation is an employee's voluntary separation from City employment. The City Manager, Department director(s), and the HR Manager have authority to accept resignations. To resign from City employment in good standing, an employee must inform his or her department director and the Human Resources Manager in writing at least two weeks prior to the effective date of resignation. A resignation becomes final and irrevocable at the time the City Manager, Department Director, or the Human Resources Manager accepts the resignation. The Department Director and the Human Resources Manager, at the authority of the City Manager, have the discretion to accept a resignation, City of Saratoga Personnel Rules and Policies 29 Updated December 2012 336 Article 9. Transfer, Reinstatement, Resignation and Job Abandonment in writing, which will be effective immediately and allow the employee to resign in good standing. Section 4. Job Abandonment An employee is deemed to have resigned if the employee is absent for 3 consecutive work days without prior authorization and without notification on each day of the period of the absence. Only regular employees will receive notice of intent to terminate, an opportunity to respond, and final notice of termination for job abandonment. An employee separated for job abandonment will be reinstated upon proof of justification acceptable to the City for such absence, such as severe accident, severe illness, false arrest, or mental or physical impairment which prevented notification. No employee has any right to procedural due process, appeal, grievance or hearing for separation due to job abandonment. City of Saratoga Personnel Rules and Policies 30 Updated December 2012 337 Article 10. Layoff ARTICLE 10. LAYOFF Section 1. Policy It is the City's intent to avoid employee layoffs whenever possible. When, however, in the City's judgment it is necessary to abolish a position of employment, the employee holding the position may be laid off or demoted without disciplinary action and without the right of appeal. When feasible and practicable, the City will meet with employees of the affected classification in order to determine whether or not a voluntary reduction in hours or other solution may be presented in order to avoid the pending layoff. Section 2. Notice Whenever possible, an employee subject to layoff will be given at least 14 calendar days' notice prior to the effective date of the layoff. Layoff notification will be provided in the form of a "Notice of Layoff." At the time of notice, the employee will also be notified of any displacement rights or rights to reemployment, as described below. Section 3. Order of Layoff Subdivision 1. Employees shall be laid off within a classification in the following order: (1) temporary employees, (2) probationary employees, (3) regular employees. All employees shall be laid off in the inverse order of their seniority within their classification. Seniority is determined by length of service. "Length of service" means employment without interruption, including all days of attendance at work and authorized leaves of absence. Length of service does not include unauthorized absences or periods of suspension or layoff. Subdivision 2. In cases where two or more employees in the classification have the same seniority determination, the following procedure will be used: Employees shall be laid off on the basis of the last evaluation rating in the classification, provided that such information has been on file at least 30 days and no more than 12 months prior to layoff. In such a case, employees shall be laid off in the following order: (1) employees with an "unsatisfactory" or "below expectation" or similar performance numerical rating, (2) employees having a "meets expectations" or similar performance numerical rating, (3) employees with an "exceed expectations or outstanding" or similar performance numerical rating. Section 4. Demotion Upon request of the employee and with approval of the appointing authority, an employee subject to layoff who has not held status in a lower classification may be allowed to demote to a vacant, authorized position in the same department if he /she meets all the requirements of the lower position as determined by the appointing authority. All employees who are demoted under this paragraph will be paid at the rate of pay for the lower position. Section 5. Transfer The appointing authority may transfer an employee subject to layoff to a vacant, authorized position if the employee is qualified and capable of performing the essential functions of the position as determined by the City of Saratoga Personnel Rules and Policies 31 Updated December 2012 338 Article 10. Layoff appointing authority. An employee who is transferred will be paid at the rate of the position to which he or she is transferred. Any employee who does not accept a transfer within 5 working days after a Notice of Transfer is given will have automatically forfeited the ability to transfer. If the transfer involves a change from one department to another, both department directors must consent unless the City Manager orders the transfer for purposes of economy or efficiency. Section 6. Re- employment Regular employees who have received a satisfactory or better evaluation for the 12 months prior to layoff and have completed their probationary period at the time of the layoff, shall be automatically placed on a re- employment list for one year for the classification from which they were laid off. This list will be used when a vacancy arises in the same or a lower class of position with similar duties and skills required. Re- employment shall be based on seniority should more than one person in the same classification be laid off from the same department. Employees who are offered and refuse re- employment will be removed from the re- employment list. Employees re- employed in a lower class, or on a temporary basis, will continue to remain on the list for the higher position for one year from the date of layoff. Section 7. Insurance Benefits Upon Layoff The City will extend medical insurance benefits for two months to an employee who has been laid off. During this two -month period, the City will continue to pay the previously established contribution for the employee's medical insurance premium if the employee continues to pay the employee's portion and if the employee completes and submits required COBRA documents. Section 8. Paid Time Off (PTO) Upon separation from the City service, the City agrees to pay 100% of the employee's accrued PTO at the employee's regular rate of pay at the time of separation in accordance with Article 6, Section 3. City of Saratoga Personnel Rules and Policies 32 Updated December 2012 339 Article 11. Work Week, Hours of Work, and Absence Control Article 11. WORK WEEK, HOURS OF WORK, AND ABSENCE CONTROL Section 1. Work Week Defined Unless otherwise specified in a memorandum of understanding, or as designated in a flexible work schedule, or as designated in a FLSA 29 USC § 207(k) schedule for safety employees, the work week begins at 12:00 a.m. Sunday and ends at 11:59 p.m. Saturday. Subdivision 1. Alternative Work Week The City utilizes alternative work schedules for a variety of classifications and positions within the City service. A department director has discretion to approve an alternative work week, provided that the alternative work week: 1) totals no more than 40 hours; 2) has a specific starting day and time that is noted in the employee's payroll record; and 3) meets the needs of the public and the department. Section 2. Hours of Work All employees are expected to be at their workstations and ready to work at the start of their scheduled work day or shift. Work hours shall be assigned to meet operational needs. The Department Director may change an employee's work period, week, or hours at any time, unless otherwise specified in an applicable MOU. Section 3. Absence Control Arriving late to work or leaving early or late in connection with scheduled work times, breaks, or meal periods is prohibited. An employee is required to obtain advance permission from his or her supervisor for any foreseeable absence or deviation from regular working hours. All absences or deviations from regular working hours must be accurately reported on the employee's timecard. Exempt (salary) employees must report on timecard all absences or deviations from regular working hours in increments of one (1) hour or more in a workday. Non - Exempt (hourly) employees must report on timecard all absences or deviations from regular working hours in increments of 15 minutes (.25) or more in a workday. Subdivision 1. Employee's Duty to Notify of Late Arrival or Absence An employee who is unexpectedly unable to report for work as scheduled must notify his or her immediate supervisor no later than the scheduled work time (preferably an hour in advance of the scheduled start time) and report the expected time or duration of any late arrival or absence. If the employee's immediate supervisor is not available, the employee must notify another supervisor or employee within same division /department. An employee who fails to timely notify the City of late arrivals or absences, or who is not present and ready to work during all scheduled work times will be deemed to have an unauthorized tardiness or absence. City of Saratoga Personnel Rules and Policies 33 Updated December 2012 340 Article 11. Work Week, Hours of Work, and Absence Control Subdivision 2. Excessive Tardiness /Absenteeism Excessive tardiness or absenteeism significantly disrupts the work production of the City. Excessive tardiness or absenteeism exists when an employee's absence from work has an adverse effect on a department's ability to complete normal work requirements or provide normal services. The employee's frequent tardiness or absences render the employee unavailable to work, thus creating a hardship on the department and the City. Excessive tardiness or absenteeism may be grounds for discipline, up to and including termination. Excessive tardiness or absenteeism excludes the use of leave protected by law or pre- approved absences from work. Section 4. Meal and Rest Periods Rest and meal periods are intended to allow employees to rest and relax. Rest and meal periods must be taken by the non - exempt (overtime - eligible) employee. Non - exempt employees receive: • Two ten - minute rest periods, one during each four -hour shift, for each eight -hour to ten -hour working day. These breaks may not be combined or added to a meal period. If an employee works between three and one -half hours and six hours in a day, the employee receives one ten - minute break. If the employee works over six hours, the employee receives two ten - minute breaks. If an employee works over ten hours, the employee receives three ten - minute breaks. Rest periods include restroom breaks, personal calls or activities, smoking breaks, and similar non - working time. The employee is relieved of all duties for the entire rest period. • One unpaid meal period of 30 -60 minutes, depending on the department schedule, is provided for each employee who works more than 5 hours. An employee is free to leave the worksite during meal periods. The employee is relieved of all duties for the entire meal period. Please observe the following rules governing breaks and meal periods: • An employee must return to his /her work area promptly after a break or meal period. • Tardy returns may result in discipline, up to and including termination of employment. • Hourly employees must comply with timecard reporting requirements. City of Saratoga Personnel Rules and Policies 34 Updated December 2012 341 Article 11. Work Week, Hours of Work, and Absence Control If an employee believes that a supervisor is discouraging or impeding the taking of rest periods and meal periods, the employee is to express their concern to the Human Resources Manager, either by phone, email, or in person on the same day on which the concern occurred or as soon as practical. The Human Resources Manager will discuss with the involved staff and facilitate a resolution. Section 5. Timekeeping Requirements Each overtime- eligible employee is expected to complete your timecard on a daily basis to note your starting time, lunchtime (beginning and ending times) and ending time. Each entry must include actual start and stop times, which mean the exact time you were ready to begin work and when your work period /day ended. You are expected to be at your work area and be ready to begin work at your scheduled start time and continue to work productively until the end of your work time. • All hourly employees must submit a signed timecard to their supervisor two days prior to the last day of the pay period. Your signature verifies the hours you worked as being accurate. • Lunches must be recorded (beginning and ending times) on the timecard if the City's timecard requires lunches to be recorded. • Each employee must ensure your timecard accurately notes your time worked. Falsifying a timecard will not be tolerated and will result in discipline, up to and including termination of employment. Falsifying includes over - reporting your time worked (claiming time was worked when you did not in fact work that time) and under- reporting your time worked (claiming that you stopped work or were not working when you in fact are working or continued to work off the clock). • PTO and Administrative Leave must be recorded on the timecard by exempt (salary) employees in increments of one (1) hour or more in a workday. • PTO must be reported on the timecard by non - exempt (hourly) employees in increments of 15 minutes (.25) or more in a workday. • All types of leave, (e.g. PTO, Holiday, Administrative Leave, and other leave) must be logged on the timecard. • Supervisors are required to review all timecards for accuracy and to sign all timecards before submitting to payroll by the due date. Section 6. Compliance with Legal Requirements and Overtime The City will pay its employees in compliance with applicable federal wage laws. City of Saratoga Personnel Rules and Policies 35 Updated December 2012 342 Article 11. Work Week, Hours of Work, and Absence Control Some employees will be overtime- exempt and not eligible for overtime pay. Other employees will be non - exempt or overtime - eligible as determined by position. The City may require an employee to work overtime or hours in excess of the employee's regularly scheduled workweek. Overtime will be paid in compliance with applicable law. Overtime must be approved, in advance, by the City Manager, your supervisor, or the Department Director. An employee who works overtime without prior approval may be subject to discipline, up to and including termination of employment. Section 7. Paycheck Review and Accuracy The City strives to ensure that paychecks are accurate. Each employee is required to review their paycheck and pay stub documents to verify the accuracy of each employee's paycheck. If the employee notices an inaccuracy (either overpayment or underpayment), the employee must report (preferably in writing) the inaccuracy to Payroll staff within three business days. Payroll staff will investigate and correct any inaccuracies. City of Saratoga Personnel Rules and Policies 36 Updated December 2012 343 Article 12. Compensation and Payroll Practices ARTICLE 12. COMPENSATION AND PAYROLL PRACTICES Section 1. Salary Upon Appointment Initial appointments are normally paid at the beginning of the salary range for the classification. When, in the discretion of the City Manager, the education, training, or experience of a prospective employee is such that a salary in excess of the beginning of the salary range is justified, the City Manager may authorize a higher salary for the classification. Section 2. Salary Upon Acting Assignment (Work out of Class) An employee is entitled to begin receiving acting pay at the salary in the acting classification that is at least 5% higher than the employee's regular classification only after 15 continuous work days (not including Off Fridays of an authorized 9/80 work schedule, holidays, or unpaid furlough days) in the classification and only if all of the following criteria are met: 1) the Department Director assigns in writing the employee to work in a permanent position that is vacant or whose incumbent is absent; 2) the salary range of the assigned classification is at least 5% higher than the employee's regular classification; and 3) the employee performs all of the duties of the higher -paid classification for more than 15 continuous days. In the event, while on acting assignment, the employee begins a qualified family and medical care leave and is eligible for Short -Term Disability (see Article 6., Section 1., Subdivision 5. Short Term Disability Insurance) or Military Leave (see Article 13. Section 6. Military Leave), the employee will be paid at the salary of the employee's regular classification. Section 3. Salary Upon Transfer An employee who is transferred from one position to another in the same classification is paid at the same wage rate. An employee who is transferred to a position in a different classification is paid at the wage rate of the new classification. Section 4. Salary Upon Reclassification Subdivision 1. Reclassification to a Higher Salary Range When an employee is reclassified to a position within a classification that has a higher salary range than the prior classification, the employee receives pay at the beginning of the new classification's salary range. Subdivision 2. Reclassification to a Lower Salary Range When an employee is reclassified to a position within a classification that has a lower salary range than the prior classification, the employee receives a Y -rated salary. Y- rating is defined as retaining an employee at his /her current salary, freezing his /her salary at the Y -rated salary, until the salary of the lower classification catches up through range adjustments, if that should occur. The purpose of this procedure is to prevent an employee from taking a loss in salary when an involuntary or voluntary reclassification occurs. City of Saratoga Personnel Rules and Policies 37 Updated December 2012 344 Article 12. Compensation and Payroll Practices Section 5. Salary Upon Promotion An employee who is promoted receives the beginning salary in the promotional classification which is at least 5% higher than the employee's prior salary. Section 6. Salary Upon Demotion for Cause An employee who is demoted for cause receives the lower salary assigned to the demoted classification that is closest to his or her salary prior to demotion. Section 7. Salary Upon Demotion Due to Layoff An employee demoted pursuant to a layoff receives the lower salary assigned to the demoted classification that is closest to his or her salary prior to layoff. Section 8. Eligibility for Salary Progression within Range All regular employees will be evaluated on an annual basis and will be eligible to advance in their salary range based on annual performance evaluation results. No increase in salary shall be automatic solely upon completion of a specified period of service. All increases shall be contingent upon a satisfactory annual evaluation of the employee's performance, and shall require recommendation of the Department Head. In the case that an employee receives a cumulative rating of less than three (3) points on the annual performance evaluation, indicating a cumulative rating less than "meets expectations ", the employee will not receive a salary increase. Employees are encouraged to refer to the applicable employee group memorandum of understanding for more information. Section 9. Pay Range Establishment The City of Saratoga classifies all positions according to duties and responsibilities, and a salary range is established for each job classification. Salary ranges are established by the collection of data from the following comparable cities: Los Altos, San Carlos, Los Gatos, Campbell, Menlo Park, Cupertino, and Morgan Hill. The Human Resources Manager analyzes salary survey data in order to establish salary ranges for new job classifications. The City utilizes two forms of salary structures: Step -Based — A salary structure with standard progression rates established within a pay range for a job. Employees progress on a pre- defined step -to -step on the basis of performance. Flat Rate - a single rate for incumbents in specific jobs. Section 10. Pay Range Adjustments The City conducts salary surveys with its comparable cities listed in the above Section 9 every two years (Except for employees in bargaining units that gave up the right to these pay range adjustments in its memorandum of understanding. Employees are encouraged to refer to the applicable employee group memorandum of understanding for more City of Saratoga Personnel Rules and Policies 38 Updated December 2012 345 Article 12. Compensation and Payroll Practices information). Pay range adjustments are implemented automatically and administratively based on the salary survey results. In the event step -based or flat rate salary structures are adjusted in order to maintain Saratoga's comparative position, incumbents will be moved to the newly established equivalent step or flat rate. Section 11. Overtime Compensation Subdivision 1. Prior Approval Required Overtime - eligible employees are not permitted to work overtime except as the department director or City Manager authorizes or directs. No employee may work overtime without receiving the approval of the appropriate supervisor prior to performing the work. Working overtime without advance approval is grounds for discipline, unless the overtime is specifically related to the City -wide emergency preparedness plan. Subdivision 2. "Overtime" Defined Unless otherwise stated in a Memorandum of Understanding, "overtime" is all hours an overtime - eligible employee actually works over 40 hours in his or her work week. Overtime is compensated at 1.5 times the employee's regular rate of pay. Only actual hours worked shall be counted toward the 40 -hour threshold for purposes of calculating FLSA overtime pay. No overtime shall be paid for less than 8 minutes of work. Subdivision 3. Compensatory Time In Lieu Of "Overtime" By mutual agreement of the employee and the City, an employee may receive, in lieu of overtime compensation, compensating time off at a rate of one and one - half hours for each hour of employment for which overtime compensation is required by law. The City requires an employee to exhaust any earned compensatory time prior to utilizing PTO in order to manage the accumulation of compensatory time. The City reserves the right to cash out accumulated compensatory time at any time. Section 12. Prohibited Salary Deductions Subdivision 1. Prohibited Deductions Notwithstanding any other provision in these Policies, the City will not reduce the salary of any overtime - exempt employee except for deductions that are authorized by applicable law. Subdivision 2. Complaint Procedure An FLSA- exempt employee who believes his or her salary has been subject to a prohibited deduction should notify in writing the Human Resources Division, which will investigate the matter as necessary. City of Saratoga Personnel Rules and Policies 39 Updated December 2012 ., Article 12. Compensation and Payroll Practices City of Saratoga Personnel Rules and Policies 40 Updated December 2012 347 Article 13. Leaves of Absence ARTICLE 13. LEAVES OF ABSENCE Section 1. Holiday Leave Subdivision 1. Holidays Unless otherwise specified in a memorandum of understanding, the following are designated as City holidays: January 1 st, New Year's Day The third Monday in January, Martin Luther King, Jr. Day The third Monday in February, President's Day The last Monday in May, Memorial Day July 4th, Independence Day The first Monday in September, Labor Day The second Monday in October, Columbus Day November 11th, Veteran's Day The fourth Thursday in November, Thanksgiving Day The Friday after Thanksgiving Day December 24, Christmas Eve December 25th, Christmas Day December 31, New Years Eve Subdivision 2. Observation of Holiday and Holiday Pay Eligibility If a designated holiday falls on a Sunday, the following Monday will constitute the holiday rather than the day observed. If a designated holiday falls on a Saturday, the preceding Friday will constitute the holiday rather than the day observed. If a holiday falls on an off - Friday of an authorized 9/80 work schedule, the holiday will be observed on the preceding Thursday. If a designated holiday falls on an employee's regular work day, the employee may utilize this designated holiday on another day as long as it is scheduled within the same workweek of the designated holiday, not to exceed 40 hours in the workweek. When there are two sequential holidays (Christmas Eve and Christmas Day, New Year's Eve and New Year's Day) falling on weekends, the nearest additional weekdays will be observed as these holidays. If a holiday occurs during a period when an employee is taking paid leave, the holiday will not be charged against the employee's accrued leave. To be eligible for holiday pay, an employee must be on paid status the week of the holiday with the City. All regular and probationary full -time employees shall receive a full day's pay for each holiday. All regular part -time employees and employee's on short -term disability shall receive holiday pay on a pro -rata basis. Notwithstanding any of the above, temporary or seasonal employees are not entitled to any holiday time or pay. City of Saratoga Personnel Rules and Policies 41 Updated December 2012 .• Article 13. Leaves of Absence Subdivision 3. Holiday Furlough A holiday furlough will exist whereby the City operations are closed from December 24 through January 1 of every year. Employees shall utilize their available leave balances (paid time off and /or compensatory time off), if applicable. Employees that utilize unpaid leave due to insufficient available leave balances shall maintain regular benefit status. Section 2. Employee Voluntary Donation of Accrued Paid Time Off (PTO) Program Upon approval of the City Manager or a designated representative, employees may donate accrued (earned) paid time off on a voluntary basis to another employee on a leave of absence due to an injury or illness subject to the conditions listed below: 1. The employee on a leave of absence must provide the City permission to promote the program to City employees. 2. The employee receiving PTO contributions must have exhausted all accrued PTO or any other leave balances available to him /her (e.g. administrative leave, accrued compensatory time in lieu of overtime per employee group memorandum of understanding). 3. State and Federal income tax on the value of PTO donated shall be paid in accordance with pertinent regulations of the Internal Revenue Service and Franchise Tax Board then in effect. 4. Donation of PTO time shall be changed to its cash value and then credited to the recipient in equivalent hours at the recipient's straight time hourly rate of pay. 5. Donating employees may not reduce their balance of accrued PTO below eighty (80) hours by reason of such donations without the written approval of the City Manager or a designated representative. Section 3. California Family Rights Act (CFRA) and Family and Medical Care Leave Act (FMLA) Leaves The City will grant family and medical care leave in accordance with the requirements of applicable state (California Family Rights Act) and federal law (Family and Medical Care Leave Act) in effect at the time the leave is granted. No greater or lesser leave benefits will be granted than those set forth in the relevant state or federal law. Leaves may also be taken for qualified exigencies and to care for a covered service member who has provided military service. Please contact Human Resources Division with questions if the leave is needed for reasons related to a covered service member. Subdivision 1. Definitions City of Saratoga Personnel Rules and Policies 42 Updated December 2012 349 Article 13. Leaves of Absence a. "12 -Month Period" means a rolling 12 -month period measured backward from the date leave is taken and continuous with each additional leave day taken. b. A term used in this Policy that is defined under applicable law will have the same definition when used in this Policy. Subdivision 2. Employee Eligibility To be eligible for family and medical leave benefits, an employee must: a. Have been employed by the City for a total of at least 12 months; b. Have actually been employed at least 1,250 hours over the previous 12 months; and C. Be employed at a worksite where 50 or more employees are employed by the City within 75 miles of that worksite. Subdivision 3. Amount of Leave Available Eligible employees may receive up to a total of 12 work weeks of unpaid leave during any 12 -month period. The 12- month period begins on the date of the first absence qualifying for leave, and rolls backward from that date. As a result, the amount of this leave an employee is entitled to take depends on how much of this leave the employee has already taken during the 12 months prior to the request. The City will calculate leave eligibility by looking back 12 months from the date of the leave request, adding together any FMLA leave taken, and then subtracting that number from the employee's 12 -week allotment. For example, an employee requests three weeks of FMLA leave beginning July 30. His attendance record is pulled, and it shows that he has taken five weeks of leave during the past 12 months. This leaves seven weeks of FMLA leave available. The employee's qualifying period resets on the anniversary of the date FMLA leave was first taken. Subdivision 4. Reasons for Leave Leave may only be used for one or more of the following reasons: a. For the birth or placement of a child with the employee for adoption or foster care; b. To care for a spouse or domestic partner (pursuant to Family Code sections 297, et seq.), child, or parent =with a serious health condition; C. To care for a newborn child (birth - 12 months of age); or d. When the employee is unable to perform the functions of his or her position because of a "serious health condition" as defined by applicable law. City of Saratoga Personnel Rules and Policies 43 Updated December 2012 350 Article 13. Leaves of Absence Subdivision 5. Intermittent Leave and Minimum Duration of Leave a. If required by a health care provider, employees may take family and medical leave intermittently (in blocks of time interspersed during work time), or by reducing their normal weekly or daily work schedule. b. Intermittent leave can be taken in no less than one -hour increments and will be counted toward the annual 12 week allotment. If leave is requested for the birth, adoption or foster care placement of a child of the employee, leave must be concluded within one year of the birth or placement. In addition, the basic minimum duration of such leave is two weeks, except that on no more than two occasions, an employee may use this leave for a period of less than two weeks' duration. Subdivision 6. Spouses Both Employed by the City The aggregate number of work weeks of leave to which City employees who are spouses may be entitled for reasons of birth or placement for adoption or foster care is limited to 12 work weeks during the 12 -month period defined herein. Subdivision 7. Notice of Need for Leave An employee needing family and medical leave is required to provide: a. 30 -day advance notice when the need for the leave is foreseeable (e.g., for childbirth or elective surgery). If an employee fails to give 30 days' notice for a foreseeable leave with no reasonable excuse for the delay, the leave may be denied until 30 days after the employee provides notice. b. When the need for leave is unforeseen, an employee must give notice as soon as possible. If the City determines that the employee's notice is inadequate or the employee knew about the need for leave for a non - emergency condition in advance of the time requested, the City may delay the start of the leave until the City can cover the position with a replacement. Subdivision 8. Medical Certification a. Content and Due Date of Certification An employee who requests leave for his or her own serious health condition, or to care for a child, parent or spouse or domestic partner (pursuant to Family Code sections 297, et seq.) who has a serious health condition, must provide the City written certification from the health care provider of the individual requiring care within 15 days after the City's request unless it is not practicable for the employee to do so despite the employee's diligent and good faith efforts. City of Saratoga Personnel Rules and Policies 44 Updated December 2012 351 Article 13. Leaves of Absence (1) If the leave is requested because of the employee's own serious health condition, the certification must include a statement that the employee is unable to work at all or is unable to perform the essential functions of his /her position. (2) If the employee requests intermittent leave, or a reduced schedule to care for an immediate family member with a serious health condition, the employee must provide medical certification that such leave is "medically necessary." "Medically necessary" means that there is a medical need for the leave and that the medical need can best be accommodated through an intermittent or reduced leave schedule. b. Second and Third Opinions If the City has reason to doubt the validity of a certification (for example, if the employee is seen engaging in activity contrary to the certification), the City may require a medical opinion of a second health care provider chosen and paid for by the City. If the second opinion is different from the first, the City may require the opinion of a third provider jointly approved by the City and the employee, and paid for by the City. The opinion of the third provider will be binding. C. Consequences of Failure to Provide Adequate or Timely Certification If the employee provides an incomplete or insufficient certification, the employer will notify the employee in writing what additional information is needed and the employee will be given a reasonable time (seven days unless a longer time is needed despite the employee's good faith and diligent efforts) to provide a complete certification. If the employee fails to provide a medical certification within 15 days of the City's request for certification, the City may delay the start time for taking the leave until the required certification is provided. d. Periodic Re- Certification The City may require the employee to periodically obtain recertification of a medical condition and report on his or her status and intent to return to work. An employee who requests an extension of approved leave will be required to provide a new certification. e. Reinstatement: Fitness for Duty Certification As a condition of reinstatement of an employee whose leave was due to the employee's own serious health condition, the employee must obtain and present a fitness - for -duty certification from the health care provider that the employee is able to return to work. Failure to provide such certification will result in denial of reinstatement. Subdivision 9. Use of Accrued Paid Leaves Family and medical leave is unpaid, except that an employee is required to first use any accumulated Paid Time Off (PTO), if the leave is for the employee's own serious health City of Saratoga Personnel Rules and Policies 45 Updated December 2012 352 Article 13. Leaves of Absence condition. The employee may also use PTO to care for a parent, spouse, domestic partner (pursuant to Family Code sections 297, et seq.), or child with a serious health condition or for any other type of family and medical leave. The paid leave runs concurrently with the family and medical leave. Subdivision 10. Concurrent Use of Family and Medical Leave with Other Types of Leave a. The City may designate any non - family and medical leave, such as workers' compensation, or disability leave, to run concurrently with family and medical leave. This is applicable when the non - family and medical leave is also for a family and medical leave purpose. b. The City integrates family and medical leave with workers' compensation leave whenever an employee is absent from the work place for 30 days or more due to an industrial injury or illness. Subdivision 11. Benefits During Leave a. An employee may receive any group health insurance coverage that was provided before the leave on the same terms as if the employee had continued to work during the leave, up to a maximum of 12 work weeks. b. Employee contributions for group health insurance coverage, if any, will be required either through prepayment of the employee's portion of the premium, payroll deduction, or by the employee's direct payment to the insurance provider. The method of payment will be established in conjunction with the employee in writing at the beginning of the leave. The amount of an employee's contribution is subject to any changes in rates that occur while the employee is on leave. C. If the City pays the employee's contribution in order to avoid cancellation of coverage, the employee will be required to reimburse the City on a payroll deduction schedule upon return from leave. The employee will be required to sign a written statement at the beginning of the leave period to authorize the payroll deduction for delinquent payments. d. If the employee fails to return from unpaid family and medical leave for reasons other than: 1) the continuation of a serious health condition of the employee or his or her covered family member; or 2) circumstances beyond the employee's control, the City may seek reimbursement from the employee for the portion of the premiums the City paid on behalf of the employee during the leave period. City of Saratoga Personnel Rules and Policies 46 Updated December 2012 353 Article 13. Leaves of Absence Subdivision 12. Eligibility of Step Increase A step increase for which an employee would have been eligible during their leave of absence will be adjusted forward by the period of time in calendar days the employee was on leave, regardless of whether the leave of absence was unpaid or paid by using accrued PTO except when applicable law provides otherwise. For example, the employee went on leave on 5/17/2010 and returned from leave on 9/28/2010. The employee was gone for 134 calendar days (15 days May + 30 days June + 31 days July + 31 days August + 27 days September). Take 134 days divided by 14 = 9.57; round up to 10 pay periods. Previous step increase eligibility date: 10/15/2010. New step increase eligibility date after adjusting forward 10 pay periods: 3/4/2011. Subdivision 13. Paid Time Off (PTO) Accrual PTO does not accrue while an employee is on unpaid leave. Subdivision 14. Job Reinstatement An employee will be reinstated to his or her previous position, or to an equivalent job with equivalent pay, benefits, and other employment terms and conditions if all of the following conditions are met: 1) the employee has been on leave for no more than the maximum family and medical leave period; and 2) the employee provides the Human Resources Division a written certification from a health care provider that the employee is fit for duty if the leave was taken for the employee's own serious health condition. If an employee is returning from family and medical leave taken for his or her own serious health condition, but is unable to perform the essential functions of his or her job because of a physical or mental disability, the City will begin an interactive process to determine whether the City can reasonably accommodate the employee without undue hardship. (See Reasonable Accommodation Policy — Article 2, Section 2). However, an employee returning from family and medical leave has no greater right to reinstatement, benefits, and other conditions of employment than if he /she had been continuously employed rather than on leave. Subdivision 15. Required Forms Employees must complete required forms provided by the City, in order to receive leave under this policy, including: a. "Request for Family or Medical Leave Form" to be eligible for leave. b. Medical certification — either for the employee's own serious health condition or for the serious health condition of a child, parent, spouse or domestic partner (pursuant to Family Code sections 297, et seq.); City of Saratoga Personnel Rules and Policies 47 Updated December 2012 354 Article 13. Leaves of Absence C. Authorization for payroll deductions for benefit plan coverage continuation; and d. Fitness - for -duty to return from leave form. Section 4. Bereavement Leave Subdivision 1. Amount of Leave Pursuant to this policy, an employee is entitled to a paid leave of absence not to exceed five (5) days per calendar year per occurrence. Subdivision 2. Eligibility for Leave An employee is eligible to take bereavement leave in the event of the death of a member of his or her immediate family. "Immediate family" consists of the following: Employee's spouse or domestic partner (pursuant to Family Code sections 297, et seq.), child, stepchild, mother /father, mother /father -in -law, grandparent, grandchild, brother /sister, brother /sister -in -law, son or daughter -in -law, legal guardian, or custodial child. If an employee has another person pass away who is not listed, the employee can request paid bereavement leave from the City Manager by presenting written documentation supporting the closeness of the relationship with the deceased person. Section 5. Pregnancy Disability Leave (PDL) An employee who is disabled because of pregnancy, childbirth, or a related medical condition is entitled to an unpaid pregnancy disability leave for the period of disability up to four months. Time off needed for prenatal care, severe morning sickness, doctor - ordered bed rest, childbirth, and recovery from childbirth are be covered by your PDL. PDL runs concurrently with family and medical leave under federal law, but not family and medical care leaves under California law. Subdivision 1. Notice & Certification Requirements a. An employee must obtain approval from her immediate supervisor regarding the scheduling of planned medical treatment, such as prenatal care, so as to minimize disruptions to the City. b. Requests for pregnancy disability leave must be submitted in writing and must be approved by the employee's supervisor or department director before the leave begins, except for emergency situations. The request must be supported by a written certification from the attending physician. (See subdivision 6 of this Policy.) C. Pregnancy disability leaves must be confirmed in writing, have an agreed -upon specific date of return, and be submitted to the department City of Saratoga Personnel Rules and Policies 48 Updated December 2012 355 Article 13. Leaves of Absence director prior to being taken, except for emergency situations. Requests for an extension of leave must be submitted in writing to the department director at least 1 -2 weeks prior to the agreed date of return and must be supported by a written certification of the attending physician that the employee continues to be disabled by pregnancy, childbirth, or a related medical condition. The maximum pregnancy disability leave is four months under the pregnancy disability law. Subdivision 2. Compensation During Leave Pregnancy disability leaves are without pay. However, the employee may first use accrued paid time off and compensatory time off during the leave. Subdivision 3. Benefits During Leave a. For an employee on pregnancy disability leave, the City will maintain group health insurance coverage that was provided before the leave for up to a maximum of four months on the same terms as if you had continued to work. The City may recover premiums it paid to maintain health coverage, as provided by the law, if an employee does not return to work following pregnancy disability leave. b. If you are on pregnancy disability leave and if paid coverage ends after the maximum time period provided by applicable law, you may continue your group health insurance coverage through the City in conjunction with applicable COBRA law by making monthly payments to the City for the amount of the relevant premium. Contact your Human Resources Manager for further information. Subdivision 4. PTO Accrual Paid Time Off (PTO) does not accrue while an employee is on unpaid pregnancy disability leave. Subdivision 5. Transfer Requests or Intermittent Leave a. Requests for transfers will be reasonably accommodated if the transfer does not cause undue hardship and does not violate other employees' rights. The transferring employee will receive the rate of pay for the job to which the employee transfers. b. Intermittent Leave: The PDL does not need to be taken in one continuous period of time but can be taken on an as- needed basis. Subdivision 6. Medical Certification You may be required to obtain a certification from your health care provider of your pregnancy disability or the medical advisability for a transfer or reasonable accommodation. The certification should include: City of Saratoga Personnel Rules and Policies 49 Updated December 2012 356 Article 13. Leaves of Absence the date on which you become disabled due to pregnancy or the date of the medical advisability for the reasonable accommodation and /or transfer; the probable duration of the period(s) of disability or the period(s) for the advisability of the transfer or reasonable accommodation; and a statement that, due to the disability, you are unable to work at all or to perform any one or more of the essential functions of your position without undue risk to yourself, the successful completion of your pregnancy or to other persons, or a statement that, due to your pregnancy, the transfer or reasonable accommodation is medically advisable. Subdivision 7. Non - Interference The City will not interfere with, restrain, or deny an employee's exercise or attempted exercise of rights under pregnancy disability laws. Subdivision 8. Relationship with Pregnancy Leave Leave time because of the employee's disability due to pregnancy, childbirth or related medical condition is not counted as time used for state CFRA leave, but is counted as time used for federal FMLA leave. Pregnant employees may have the right to take a pregnancy disability leave in addition to family or medical leave. Generally, an employee on pregnancy disability leave is also on FMLA leave, but the employee may be able to take a state CFRA leave for up to twelve (12) work weeks when the pregnancy disability has ended. Employees should contact the Human Resources Division regarding their individual situation. Subdivision 9. Reinstatement a. Upon the expiration of pregnancy disability leave and the City's receipt of a written statement from the health care provider that the employee is fit to return to duty, the employee will be reinstated to her original or an equivalent position, so long as it was not eliminated for a legitimate business reason during the leave. b. If the employee's original position is no longer available, the employee will be assigned to an open position that is substantially similar in job content, status, pay, promotional opportunities, and geographic location as the employee's original position. C. If upon return from leave an employee is unable to perform the essential functions of her job because of a physical or mental disability, the City will initiate an interactive process with the employee in order to identify potential reasonable accommodations. City of Saratoga Personnel Rules and Policies 50 Updated December 2012 357 Article 13. Leaves of Absence d. An employee who fails to return to work after the termination of her leave loses her reinstatement rights. Section 6. Military Leave a. Military Service Leaves The City provides military leaves of absence to employees who serve in the uniformed services as required by the Uniformed Services Employment and Reemployment Rights Act of 1994, 38 U.S.C. §4301 et. seq. ( "USERRA ") and applicable state laws. To obtain a leave for military service, notify the Department Director and Human Resources Division (preferably in writing) immediately upon learning when you will leave on an active duty assignment. The City requests that you provide a copy of your orders or other documents from the military service pertaining to the leave, including the length of and your release from active duty and the reason for the leave. An employee who has been a City employee for at least one year and who is on a military leave of absence that meets the requirements of applicable State law may be eligible to be paid his or her regular City salary or compensation for the first 30 calendar days of any such absence. (Mil. & Vet. Code § 395.01, 395.02, 395.05.) Please notify the Human Resources Division of your circumstances who will determine your rights specific to your situation. Employees will be reinstated in accordance with applicable law. Please notify the Human Resources Division upon your release from active duty. An employee may also be able to take time off for qualified exigencies. Please contact the Human Resources Division for more information. b. Military Spouse An employee who works an average of 20 or more hours per week may request an unpaid leave of absence of up ten days to spend time with a spouse serving in the military who has been granted leave from deployment during a period of military conflict. The employee must provide the Department Director and the Human Resources Division with notice, within two business days of receiving official notice that the military spouse will be on leave from deployment, of his or her intention to take the leave. The employee must provide the Human Resources Division with written documentation certifying that the spouse will be on leave from deployment during the time the leave is requested. The spouse must be one of the following: (A) A member of the Armed Forces of the United States who has been deployed during a period of military conflict to an area designated as a combat theater or combat zone by the President of the United States. (B) A member of the National Guard who has been deployed during a period of military conflict. (C) A member of the Reserves who has been deployed during a period of military conflict. "Period of military conflict" means either (A) A period of war declared by the United States Congress; or (B) A period of deployment for which a member of a reserve City of Saratoga Personnel Rules and Policies 51 Updated December 2012 358 Article 13. Leaves of Absence component is ordered to active duty pursuant to specific legal provisions. The City will not retaliate against an employee for requesting or taking the leave. Mil. & Vet. Code § 395.10. There are other military- related leaves available as defined under applicable law. Please contact the Human Resources Division who will review your situation and review other leave options. Section 7. Time Off for Victims of Violent Crimes or Domestic Abuse Labor Code 230.1 and 230.2 allow a private sector employee to take time off if a victim of specified crimes. Although these laws do not apply to the City, the City also will allow unpaid time off for such urgent issues as follows. a. An employee who has been a victim of a serious or violent felony, sexual assault, or domestic violence may take time off to: 1) appear in court to comply with a subpoena or other court order as a witness in any judicial proceeding; 2) seek medical or psychological assistance; or 3) participate in safety planning to protect against further assaults. b. An affected employee must give the City reasonable notice that he or she is required to be absent for a purpose stated above. In cases of unscheduled or emergency court appearances or other emergency circumstances, the affected employee must, within a reasonable time after the appearance (within three business days), provide the City with written proof that the absence was required for any of the above reasons. Leave under this section is unpaid, unless the employee uses accrued PTO. Section 8. Jury Duty and Court Appearances Subdivision 1. Jury Duty An employee who is summoned to serve on a jury must notify his or her supervisor or the Human Resources Division as soon as possible after receiving notice of both possible and actual jury service in order to provide the City with adequate notice. The employee is expected to notify his immediate Supervisor or the Human Resources Division in a timely manner each day he or she serves on jury duty (preferably at least 1 hour before the employee's scheduled workday begins). If work time remains after any day of jury selection or jury duty, you will be expected to return to work for the remainder of your work schedule. The time spent on jury duty is not work time for purposes of calculating overtime compensation. Subdivision 2. Witness Subpoena An employee who is subpoenaed to appear in court in a matter regarding an event or transaction which he or she perceived or investigated in the course of his or her City job duties will do so without loss of compensation. The time spent will be considered work time. City of Saratoga Personnel Rules and Policies 52 Updated December 2012 359 Article 13. Leaves of Absence The employee must immediately notify the Human Resources Division and the Department Director of the subpoena because the subpoenaing party may be required to pay a deposit for the cost of the employee's time. The employee is expected to notify his immediate Supervisor or Human Resources in a timely manner each day he or she serves on witness duty (preferably at least 1 hour before the employee's scheduled workday begins). If work time remains after any day of witness duty, you will be expected to return to work for the remainder of your work schedule. Subdivision 3. Exception for Employee- Initiated or Non -City Related Lawsuits An employee subpoenaed to appear in court in a matter unrelated to his or her City job duties or because he or she is a party to a civil or administrative proceedings does not receive compensation for time spent related to those proceedings. An employee may request to receive time off without pay, or may use accrued PTO for time spent related to those proceedings. The time spent in these proceedings is not considered work time. Section 9. Time Off to Vote If an employee does not have sufficient time outside of working hours to vote at a statewide election, the employee may take off enough working time to enable the employee to vote, up to a maximum of two hours, without a loss of pay. The time off must be taken at either the beginning or end of the employee's regular working shift. The time taken off shall be combined with the voting time available outside of working hours. If two working days before the election the employee has reason to believe that time off will be necessary to vote, the employee must give his Supervisor at least two (2) days notice that time off to vote is needed and must obtain his Supervisor's approval. Section 10. Work Related Illness or Injury Leave The City will grant leave to employees with occupational illnesses or injuries in accordance with state law and /or reasonably accommodates such employees with modified work when appropriate (See Article 2. Equal Opportunity, Reasonable Accommodation, and Interactive Process). The employee's treating doctor is responsible for explaining in a medical report the kind of work the employee can and cannot do while recovering and the changes needed in work schedule or assignments. Subdivision 1. Temporary Disability Benefit Payments Temporary disability (TD) benefits (temporary partial disability benefits or temporary total disability benefits) are payments employees receive if they lose City of Saratoga Personnel Rules and Policies Updated December 2012 360 53 Article 13. Leaves of Absence wages because their injury prevents them from performing their job while recovering. Prior to the start of TD, an employee must serve a "waiting period" of three days. The City will pay, on behalf of the employee, the first three days the employee is unable to work. The waiting period of three days is waived if the employee is: 1. hospitalized as a result of the injury or illness, 2. unable to work for more than 14 calendar days 3. or the injury is the result of a criminal act of violence. As a general rule, temporary disability pays two - thirds of the gross (pre -tax) wages an employee loses while he /she is recovering from a job injury. However, an employee cannot receive more than the maximum weekly amount set by law. Visit the State of California Division of Workers' Compensation website at www.dwc.ca.gov for the current maximum weekly amount set by law. The City's third party claims administrator will consider all forms of income when calculating an employee's temporary disability benefits. These payments will be processed by the City's third party administrator and paid to the employee every two weeks until the doctor releases the employee to return to work. An employee may use their accrued paid time off to supplement their temporary disability payments in an amount not to exceed their regular weekly wage. Section 11. School - Related Leaves Labor Code 230.8 allows a private sector employee to take time off to attend school or childcare center activities. Although this law does not apply to the City, the City also will allow unpaid time off for such activities as follows. Subdivision 1. Permitted Leave and Approval Requirement An employee who is a parent, guardian or grandparent with custody of a child in a licensed day care facility, kindergarten or grades 1 -12, inclusive, shall be allowed up to forty hours each school year, not to exceed eight hours in any calendar month of the school year, without pay, to participate in activities involving the child at the school or day care facility. An employee utilizing this leave must first provide reasonable notice to and obtain approval of his or her supervisor or department director about the planned absence. Subdivision 2. Documentation of Visit The City may require the employee to provide documentation from the school or childcare facility as verification that the employee participated in the school activities in question. Subdivision 3. Both Parents Employed by the City If both parents, guardians or grandparents having custody work for the City, only the first person requesting leave under this policy will be permitted the leave. City of Saratoga Personnel Rules and Policies 54 Updated December 2012 361 Article 13. Leaves of Absence Section 12. Unauthorized Leave When prior authorization is required, an employee who takes leave without prior authorization is subject to discipline, up to and including termination. When prior authorization is not possible due to circumstances beyond the employee's control, the employee is required to contact his or her supervisor as soon as possible after the unauthorized leave has begun and must then follow the procedures applicable to gaining authorization for the particular leave. Reference Article 9. Transfer, Reinstatement, Resignation and Job Abandonment, Section 4. Job Abandonment. Section 13. Unpaid Leave Unpaid leave not otherwise authorized pursuant to any City leave policy may, in certain circumstances, be granted by the City Manager. If granted, the unpaid leave will be only for the period specified by the City Manager. The health and dental benefit premiums may not be paid by the City during the unpaid leave, and an employee on unpaid leave will not accrue annual leave (PTO) during this time. Section 14. General Provisions Applicable to all Leaves Subdivision 1. Benefits during Leave of Absence During all unpaid leaves of absence, the City will continue to pay the City portion for an employee's health insurance benefits through the remaining portion of the pay period in which the leave begins unless the City is legally required to continue health benefits for a longer time. For example, if an employee is approved for and takes a three (3) month unpaid personal leave beginning June 15, and the pay period ends on June 25, benefits will continue through June 25, unless the City is legally required to continue health benefits for a longer time. Thereafter, the employee can continue benefits in accordance with applicable law with the employee paying for coverage. If the employee remains in paid status for the length of the leave (by using PTO or CTO), the City will continue the employee's benefits until no longer in paid status. If the employee is required to pay a part of the premium for health benefits, the employee must ensure that the City promptly receives the employee's required payment to continue health benefits in effect. The deadline for employee paying his part of the monthly health insurance premium is on or before the first day of the month of the coverage. Employee can discuss with the Human Resources Division pre - paying the employee's portion of the premium before the leave of absence begins to ensure that health benefits coverage continues in effect. City of Saratoga Personnel Rules and Policies 55 Updated December 2012 362 Article 13. Leaves of Absence An employee may use accrued PTO or other accrued paid time off as part of any leave granted unless the law allows the employee to choose whether to use PTO (such as a pregnancy disability leave). PTO does not continue to accrue while an employee is on an unpaid leave. Subdivision 2. Employees are Prohibited from Working for Another Entity During a Leave A leave is time for an employee to deal with a particular issue or situation that requires the employee to be absent from his /her employment with the City. If an employee works a job or performs services for a second employer or works as a contractor or consultant for another entity during a leave from the City, without express written consent provided in advance by the City Manager, the City will terminate employee's employment with the City. Subdivision 3. Return to Work Each employee is expected to promptly notify the Human Resources Division in writing if the need for the leave has ended so that the employee can return to work earlier than scheduled. The Human Resources Division and the employee's supervisor will then determine the employee's return to work date and work schedule. Each employee who is granted a specific length of leave is expected to return to work on the specified return to work date determined by the Human Resources Division. An employee who fails to return to work at the scheduled return date or who fails to notify the Human Resources Division that the need for the leave has ended will be terminated from employment. If the employee cannot return to work by the expected return to work date, the employee must request in writing an extension of the leave before the return to work date. The employee's request of an extension of leave must be provided to the Human Resources Division at least 1 -2 weeks before the return to work date if the need for the extension of the leave is foreseeable. Each employee on leave must keep the Human Resources Division updated on his /her status and expected return to work date. At least one week before the scheduled return to work date, the employee is required to call or email the Human Resources Division and confirm the employee will return on the scheduled date or, if needed, request a further leave of absence. Each employee on leave must cooperate in supplying the Human Resources Division with requested information, including doctor notes related to the leave, to a requested extension of a leave, and to the return to work. City of Saratoga Personnel Rules and Policies 56 Updated December 2012 363 Article 13. Leaves of Absence Any employee on a medical - related leave must have a doctor's note releasing the employee to return to work. City of Saratoga Personnel Rules and Policies 57 Updated December 2012 364 Article 14. Alcohol and Drug Abuse Policy ARTICLE 14. ALCOHOL AND DRUG ABUSE POLICY Section 1. Purpose - It is the intention of this policy to eliminate substance abuse and its effects in the workplace. While the City of Saratoga has no intention of intruding into the private lives of its employees, involvement with drugs and alcohol can take its toll on job performance and employee safety. Employees must be in a condition to perform their duties safely and efficiently, in the interest of their fellow workers and the public, as well as themselves. The presence of drugs and alcohol on the job, and the influence of these substances on employees during working hours, are inconsistent with this objective. Employees who think they may have an alcohol or drug usage problem are urged to voluntarily seek confidential assistance from the Employee Assistance Program Counselor. While the CITY will be supportive of those who seek help voluntarily, the CITY will be equally firm in identifying and disciplining those whose continued substance abuse, even if enrolled in counseling or rehabilitation programs, results in performance problems, danger to the health and safety of others and themselves and /or violations of federal, state or CITY laws /policy. Supervisors will be trained to recognize abusers and become involved in this control process. Alcohol or drug abuse that negatively impacts work performance or safety will not be tolerated and disciplinary action, up to and including termination, will be used as necessary to achieve this goal. This policy provides guidelines for the detection and deterrence of alcohol and drug abuse. It also outlines the responsibilities of City managers and employees. To that end, the CITY will act to eliminate any substance abuse (alcohol, illegal drugs, prescription drugs or any other substance which could impair an employee's ability to safely and effectively perform the functions of the particular job) which increases the potential for accidents, absenteeism, substandard performance, poor employee morale or damage to the Agency's reputation. All persons covered by this policy should be aware that violations of the policy may result in discipline, up to and including termination, or in not being hired to the extent allowed by law. In recognition of the public service responsibilities entrusted to the employees of the CITY and that drug and alcohol usage can hinder a person's ability to perform duties safely and effectively, the following policy against drug and alcohol abuse is hereby adopted by the CITY. Section 2. Policy - It is CITY policy that employees shall not be impaired by alcohol or illegal drugs, have illegal drugs in their biological system, or be in possession, of alcohol or drugs while on CITY property, at work locations, or City of Saratoga Personnel Rules and Policies 58 Updated December 2012 365 Article 14. Alcohol and Drug Abuse Policy while on duty or subject to being called to duty, and that employees shall not sell or provide drugs or alcohol to any other employee or person while on duty or subject to being called to duty. While use of validly prescribed medications and drugs (other than medicinal marijuana) does not violate this policy per se, failure by an employee to notify his /her supervisor, before beginning work, when taking medications or drugs which could foreseeably interfere with the safe and effective performance of duties, or the operation of CITY equipment, can result in discipline, up to and including termination. The employee is required to report to the supervisor the possible negative side effects, but the employee is not to share the drug name or the medical diagnosis. Use, possession, or being under the influence of marijuana, even under a prescription, is not allowed, unless such a provision is determined to be unlawful. In the event there is a question regarding an employee's ability to safely and effectively perform assigned duties while using such prescription medications or drugs, written clearance from a qualified physician may be required. The CITY reserves the right to search, without employee consent, all areas and property in which the CITY maintains control or joint control with the employee. Otherwise, the CITY may notify appropriate law enforcement agencies that an employee may have illegal drugs in his or her possession or in an area not jointly or fully controlled by the CITY. The City reserves the right to contact law enforcement for any concerns of possible illegal behavior Refusal to immediately submit to an alcohol and /or drug analysis when requested by CITY management or law enforcement personnel, or refusal to submit to a search of personal properties if requested by law enforcement personnel, may constitute insubordination and be grounds for discipline, up to and including termination. An employee reasonably believed to be under the influence of alcohol or drugs shall be prevented from engaging in further work and shall be detained for a reasonable time until he or she can be safely transported from the work site. The CITY is committed to providing reasonable accommodation to those employees whose drug or alcohol problem classifies them as disabled under federal and /or state law. The disability laws do not protect current users of unlawful drugs. The CITY has established an Employee Assistance Program (EAP) to assist those employees who voluntarily seek help for alcohol or drug problems. The CITY will provide separate written notice of the availability City of Saratoga Personnel Rules and Policies 59 Updated December 2012 •: Article 14. Alcohol and Drug Abuse Policy of this program to all employees. Employees should contact the Human Resources Division or the EAP Counselor for additional information. EAP posters with contact information are posted in the Human Resources Division and employee break /lunch rooms. Section 3. Application - This policy applies to all employees of and to all applicants for positions with the CITY. This policy applies to alcohol and drugs, including all substances, drugs or medications, whether legal or illegal, which could impair an employee's ability to effectively and safely perform the functions of the job. Section 4. Employee Responsibilities - An employee must: Not report to work or be subject to duty while his or her ability to perform job duties is impaired due to on or off duty alcohol or drug use; Not possess or use alcohol or impairing drugs, including illegal drugs and prescription drugs without a prescription, during working hours or while subject to duty, on breaks, during workday meal periods or at anytime while on CITY property; Not directly or through a third party sell or provide drugs or alcohol to any person, including any employee, while either or both employees are on duty or subject to being called to duty; Submit immediately to an alcohol or drug test when requested by a CITY representative; Notify his or her supervisor, before beginning work, when taking any medications or drugs, prescription or non- prescription, which may interfere with the safe and effective performance of duties or operation of CITY equipment; and Provide within one business day of request, bona fide verification of a current valid prescription for any potentially impairing drug or medication identified when a drug screen /test is positive. The prescription must be in the employee's name. Section 5. Management Responsibilities - a. Managers and supervisors are responsible for reasonable enforcement of this policy. b. Managers and supervisors may request that an employee submit to a drug and /or alcohol test when a manager or supervisor has a reasonable suspicion that an employee is intoxicated or under the influence of drugs or alcohol while on the job or subject to being called. A manager may request a second manager or the Human Resources City of Saratoga Personnel Rules and Policies 60 Updated December 2012 367 Article 14. Alcohol and Drug Abuse Policy Manager to observe the behavior at issue also before making a decision. C. "Reasonable suspicion" is a belief based on objective facts sufficient to lead a reasonably prudent supervisor to suspect that an employee is under the influence of drugs or alcohol so that the employee's ability to perform the functions of the job is impaired or so the employee's ability to perform his or her job safely is reduced. d. For example, any of the following, alone or in combination, may constitute reasonable suspicion depending upon the circumstances in which the behavior is observed and /or reported: 1. Alcohol odor on breath; 2. Slurred speech; 3. Unsteady walking and movement; 4. An accident involving CITY property, where it appears the employee's conduct is at fault; 5. Physical altercation; 6. Verbal altercation; 7. Unusual behavior; 8. Possession of alcohol or drugs; 9. Information obtained from a reliable person with personal knowledge. e. Any manager or supervisor requesting an employee to submit to a drug and /or alcohol test should request a second manager or the Human Resources Manager to join the meeting with the employee and should document in writing the facts constituting reasonable suspicion that the employee in question is intoxicated or under the influence. f. Any manager or supervisor encountering an employee who refuses an order to submit to a drug and /or alcohol analysis upon request shall remind the employee of the requirements and disciplinary consequences of this Policy. Where there is reasonable suspicion that the employee is then under the influence of alcohol or drugs, the manager or supervisor should consider contacting law enforcement or arrange for the employee to be safely transported home. Managers and supervisors shall not physically search the person of employees, nor shall they search the personal City of Saratoga Personnel Rules and Policies 61 Updated December 2012 •: Article 14. Alcohol and Drug Abuse Policy possessions of employees without the freely given written consent of, and in the presence of, the employee. Managers and supervisors shall notify their Department head or designee when they have reasonable suspicion to believe that an employee may have illegal drugs in his or her possession or in an area not jointly or fully controlled by the CITY. If the Department head or designee concurs that there is a reasonable suspicion of illegal drug possession, the Department head shall notify the appropriate law enforcement agency. Section 6. Physical Examination and Procedure - The drug and /or alcohol test may test for any substance which could impair an employee's ability to perform effectively and safely the functions of his or her job, including, but not limited to, prescription medication, alcohol, heroin, cocaine, morphine and its derivatives, P.C.P., methadone, barbiturates, amphetamines, marijuana and other cannabinoids. Testing shall be performed at a local medical facility selected by the CITY. The procedure used shall require an unbroken chain of custody from sample collection to return of the written report. A split sample (a test sample which is divided into portions for use in an independent testing of positive samples) shall be preserved to provide an opportunity for a second independent test. If the initial test has positive results, the CITY shall conduct a confirmation test using a court admissible testing technique. If the confirmation test has positive results, the employee may re -test the second part of the split sample at a laboratory of the employee's choice and at the employee's own expense. A positive result from a drug and /or alcohol analysis showing the employee is under the influence while at work may result in disciplinary action, up to and including, termination. If the drug screen is positive, the employee must provide, within 24 hours of the request, bona fide verification of a valid current prescription for the drug identified in the drug screen. The prescription must be in the employee's name. If the employee does not provide acceptable verification of a valid prescription, or if the prescription is not in the employee's name, or if the employee has not previously notified his or her supervisor of the same, the employee will be subject to disciplinary action, up to and including termination. If an alcohol or drug test is positive for alcohol or drugs, the CITY shall conduct an investigation to gather all facts. The decision to discipline, up to and including termination, will be carried out in conformance with the CITY's discipline procedures, modified as follows: City of Saratoga Personnel Rules and Policies 62 Updated December 2012 369 Article 14. Alcohol and Drug Abuse Policy (1) In the event a regular, for -cause employee requests an evidentiary appeal to the City Manager from a final notice of discipline (Section 6 of the Discipline Policy) for violating the City's Drug and Alcohol Abuse Policy, the evidentiary appeal will be conducted by a neutral, third party arbitrator who, after conducting the evidentiary hearing and hearing all of the evidence (pursuant to the provisions of Section 6 of the Discipline Policy), will make a nonbinding recommendation to the City Manager with respect to discipline. The nonbinding recommendation will include: (a) the arbitrator's nonbinding recommendation regarding discipline; and (b) the arbitrator's nonbinding - recommended- written findings of fact in support of his or her recommendation for discipline. The nonbinding - recommended- written findings of fact will include the factual basis for the recommendation for discipline, including the testimony of the witnesses relied upon, the basis of any credibility determinations of these and other witnesses, the documents and other evidence relied upon, and nonbinding assessments on how the testimony, documents, and other evidence support the nonbinding recommendation of the arbitrator. (2) The City and the Bargaining Unit or unrepresented employee will agree on the neutral, third party arbitrator who will conduct the evidentiary hearing and make the above nonbinding recommendations, prior to the onset of the evidentiary hearing. In the event an agreement on a third party arbitrator cannot be reached, then either party shall promptly obtain from the California State Conciliation Services a list of seven impartial arbitrators from which the City and the Bargaining Unit shall select the neutral, third party arbitrator by alternatively striking names from the list. The first party to strike from the list shall be determined by coin toss. (3) The neutral, third party arbitrator will submit his or her nonbinding recommendation for discipline and nonbinding - recommended- written findings of fact to the City Manager with a copy to the employee and the Bargaining Unit within 30 days after the evidentiary hearing has been completed and written briefs, if any, have been submitted. The City Manager will have 30 days thereafter in which to review the nonbinding recommendations and findings, to request clarification or additional testimony or evidence (at the City City of Saratoga Personnel Rules and Policies 63 Updated December 2012 370 Article 14. Alcohol and Drug Abuse Policy Manager's discretion) on any issue, and to render a final statement of written findings and decision. The City Manager's decision is final. (4) Proof of service of the City Manager's final statement of written findings and decision and the statute of limitations on that final decision is in accordance with Subdivisions 6 and 7 of Section 6 of the Discipline Policy. Section 7. Confidentiality - Laboratory reports and test results shall not appear in an employee's general personnel file. Information of this nature will be contained in a separate confidential medical folder that will be securely kept under the control of the Human Resources Manager. The reports or test results may be disclosed to CITY management on a strictly need -to -know basis and to the tested employee upon request. Disclosures, without patient consent, may also occur to the extent allowed by law when: (1) the information is compelled by law or by judicial or administrative process; (2) the information has been placed at issue in a formal dispute between the employer and employee; (3) the information is to be used in administering an employee benefit plan; or (4) the information is needed by medical personnel for the diagnosis or treatment of the patient who is unable to authorize disclosure. City of Saratoga Personnel Rules and Policies 64 Updated December 2012 371 Article 15. Fitness for Duty Examinations ARTICLE 15. FITNESS FOR DUTY EXAMINATIONS Section 1. Pre - Employment Drug Testing, Conditional Offer of Employment Pre - Employment Drug Testing: Pre - employment testing of applicants for drugs may be required for safety - sensitive jobs in which individuals perform work that involves danger to the public or jobs in which individuals can directly influence children. A positive result of any illegal drugs may result in the applicant being withdrawn for consideration of the position. If a drug screen is positive, the applicant must provide, within 24 hours of the request, bona fide verification of a valid current prescription for the drug identified in the drug screen. If the prescription is not in the applicant's name or the applicant does not provide acceptable verification, or if the drug is one that is likely to impair the applicant's ability to perform the essential job duties, the applicant's job offer may be withdrawn. Conditional Offer of Employment: After a conditional offer of employment has been extended to an applicant, prior to conferring appointment, the City may, in compliance with all applicable laws, require the applicant to submit to a fitness for duty medical examination or submit acceptable medical information that is directly related to job performance and business necessity to determine whether or not the individual can perform the essential functions of the position, with or without reasonable accommodation. If a drug screen is positive, the applicant must provide, within 24 hours of the request, bona fide verification of a valid current prescription for the drug identified in the drug screen. If the prescription is not in the applicant's name or the applicant does not provide acceptable verification, or if the drug is one that is likely to impair the applicant's ability to perform the essential job duties, the applicant's conditional offer of employment may be withdrawn. Section 2. Probationary and Regular Status Employee Examinations The Human Resources Manager or a designee may require an employee to submit to a fitness for duty examination that is job - related and consistent with business necessity to determine if the employee is able to perform the essential functions of his or her job when: 1) the employee appears to be unable to perform or has difficulty performing one or more essential functions of his or her job; and 2) there is reason to question the employee's ability to safely or efficiently complete work duties. City of Saratoga Personnel Rules and Policies 65 Updated December 2012 372 Article 15. Fitness for Duty Examinations Section 3. Role of Health Care Provider A City - selected health care provider will examine the employee at City expense. The City will provide the heath care provider with a letter requesting a fitness for duty examination and a written description of the essential functions of the employee's job. The health care provider will examine the employee and provide the City with non - confidential information regarding whether: 1) the employee is fit to perform essential job functions; 2) there are any reasonable accommodations that would enable the employee to perform essential job functions; and 3) the employee's continued employment poses a threat to the health and safety of him or herself or others. Should the health care provider exceed the scope of the City's request and provide confidential health information, the City will return the report to the health care provider and request another report that includes only the non - confidential fitness for duty information that the City has requested. Section 4. Medical Information During the course of a fitness for duty examination, the City will not seek or use information regarding an employee's medical history, diagnoses, or course of treatment without an employee's written authorization. Section 5. Medical Information from the Employee's Health Care Provider An employee may consent to his or her personal healthcare provider submitting confidential medical information to the City or the City - selected health care provider. If the employee provides written authorization, the Human Resources Manager will submit the information that the employee provides to the City -paid health care provider who conducted the examination. The Human Resources Manager will request the City -paid health care provider to determine whether the information alters the original fitness for duty assessment. City of Saratoga Personnel Rules and Policies 66 Updated December 2012 373 Article 16. Workplace Security ARTICLE 16. WORKPLACE SECURITY Section 1. Policy The City is committed to providing a safe and secure workplace for employees and the public. The City will not tolerate acts, jokes about, or threats of violence in the workplace. The workplace includes any location where City business is conducted, including vehicles and parking lots. Any violation of this policy will be referred to law enforcement (which may lead to criminal prosecution), and /or disciplinary action, up to and including termination. Section 2. Requirements for Employees a. Employees are prohibited from engaging in, joking about, or promoting acts of intimidation, violence, threats, coercion, assault and /or abusive behavior toward any person while in the course of City employment. The City will not tolerate any conduct that references workplace violence, even if it was intended to be harmless, humorous, a prank, blowing off steam, or venting. b. Employees engaged in City business are prohibited from carrying self- defense weapons in violation of any law or this policy. Employees who have legal authority to carry a self- defense weapon shall notify the department director in writing of what type of weapon is being carried. Employees who have legal authority to carry self- defense weapons violate this policy if they: 1) accidentally discharge or lose their weapon; 2) use, threaten to use, or display the weapon while engaging in City business or while on City property; or 3) violate any law related to carrying a legal self- defense weapon while engaged in City business. C. The security of facilities and the welfare of our employees require that every individual be aware of potential security risks. An employee must immediately notify their supervisor or other manager when a person is acting in a suspicious manner in or around the facilities, when keys or other access devices are lost or misplaced, or when the employee believes the City office or facility is otherwise not secure. An employee must also immediately notify their supervisor or other manager if they are aware of any violent or potentially violent incidents, threats, or concerns of a risk for violence or other disturbance. The employee's supervisor or other manager must promptly notify the Department Director, City Manager or the Human Resources Division of the employee's report. d. No profile allows an employer to determine definitely whether an individual will be more prone to workplace violence than another. An employee must immediately report any potential early warning signs or any other unusual behavior to his /her supervisor or department director, per Section 4. Incident Reporting Procedures. City of Saratoga Personnel Rules and Policies 67 Updated December 2012 374 Article 16. Workplace Security Potential early warning signals may include, but are not limited to, the following: • Direct or veiled verbal or physical threats of harm. • Intimidation of others. • Carrying a concealed weapon. • Paranoid behavior. • Moral righteousness and indignation. • Inability to take criticism of job performance and /or holding a grudge. • Extreme interest in semiautomatic or automatic weapons. • Fascination with incidents of workplace violence. • Obsessive involvement with the job. • Being a loner. • Violence toward inanimate objects. • Theft or sabotage of projects or equipment. • Behavior or communication presented as some sort of dark humor. e. If an employee is faced with aggression from another person, the employee should try to de- escalate the situation whenever the employee can safely do so. Whenever an employee can safely do so, the employee should retreat from the situation and seek assistance from a supervisor, Department Director, or law enforcement rather than responding in a physically confrontational manner. An employee should avoid or minimize conflict, confrontation, and a physical response whenever the employee can safely do so. Section 3. Definitions a. "Weapons" are defined as firearms, chemical sprays, clubs or batons, and knives, and any other device, tool, chemical agent or implement that can cause bodily harm if used as a weapon or displayed in such a manner to cause harm or threaten a person with harm. b. "Workplace Violence" is any conduct that causes an individual to reasonably fear for his or her personal safety or the safety of his or her family, co- workers, associates, friends, and /or property. Specific examples of workplace violence include, but are not limited to, the following: (1) Threats or acts of physical harm directed toward an individual or his /her family, friends, co- workers, associates, or property. (2) The destruction of, or threat of destruction to City property or another employee's property. (3) Harassing or threatening phone calls. City of Saratoga Personnel Rules and Policies 68 Updated December 2012 375 Article 16. Workplace Security (4) Surveillance that is threatening or intimidating. (5) Stalking. (6) Possession of offensive or defensive weapons (firearms, illegal knives, clubs, mace, pepper spray, tear gas, etc.). (7) Any conduct relating to violence -, aggression, intimidation, or threats of violence that adversely affects the City's legitimate business interests. Section 4. Incident Reporting Procedures Subdivision 1. An employee must immediately report any potential warning signs of workplace violence or any other unusual behavior and workplace violence incidents to his /her supervisor or department director. The supervisor or department director will report the matter to the Human Resources Manager. An employee is authorized and encouraged to call 911 if the employee feels law enforcement response is needed. Subdivision 2. The Human Resources Manager, at the authority of the City Manager, will document all reports including reports of any potential warning signs of work place violence and workplace violence incidents, including the employee names(s), date /time, location, incident description, witness names and statements, description of unidentified parties, description of the act(s) and /or behavior arising from the incident and action(s) taken, and will provide any other relevant information regarding the incident. Subdivision 3. The Human Resources Manager will take appropriate steps to provide security, such as: 1. Placing the employee alleged to have engaged in workplace violence on administrative leave, pending investigation; 2. Asking any threatening or potentially violent person to leave the site; 3. Immediately contacting an appropriate law enforcement agency; and /or 4. Securing the City offices by methods including a temporary lockdown while other precautions are taken. City of Saratoga Personnel Rules and Policies 69 Updated December 2012 376 Article 16. Workplace Security Section 5. Investigation The Human Resources Manager will see that reported violations of this policy are investigated as necessary. Section 6. Management Responsibilities Each department director has authority to enforce this policy by: a. Training supervisors and subordinates about their responsibilities under this policy; b. Assuring that reports of workplace violence are documented accurately and timely; c. Notifying the Human Resources Manager and /or law enforcement authorities of any incidents (including calling 911 if needed); d. Making suggestions of methods to improve safety and security; e. Making reasonable efforts to maintain a safe and secure workplace; ON O f. Maintaining records and follow up actions related to workplace violence reports. Section 7. Follow up and Disciplinary Procedures An employee found in violation of this policy will be subject to disciplinary action, up to and including termination of employment. The City may also direct that an employee submit to a fitness for duty examination. In addition, employees found in violation of this policy may be investigated by law enforcement which may result in criminal prosecution. The Human Resources Division will review security precautions and policies after an incident or concern to determine whether any changes in security, processes, or policy should be made. City of Saratoga Personnel Rules and Policies 70 Updated December 2012 377 Article 17. Employment of Relatives ARTICLE 17. EMPLOYMENT OF RELATIVES Section 1. Definitions The following definitions apply to this Article: a. "Relative" means spouse, domestic partner (pursuant to Family Code sections 297, et seq.), child, step -child or a step - relative similar to any of the category of relatives noted in this paragraph, parent, grandparent, grandchild, brother, sister, half- brother, half- sister, aunt, uncle, niece, nephew, parent -in -law, brother -in -law or sister -in -law. b. "Spouse" means two persons who have a valid marriage and who are wife and husband, or two people who are domestic partners, as that term is defined by California law (pursuant to Family Code sections 297, et seq.). c. "Supervisory relationship" means one in which one employee has the authority to control, direct, reward, or punish another by virtue of the duties and responsibilities assigned to his or her City appointment. d. "Employee" for purposes of this Article only, is one who receives a City payroll check for services rendered or who is serving the City in a limited, volunteer or intern capacity. Section 2. Policy Relating to Relatives A department director has discretion not to appoint, promote or transfer a person to a position within the same department in which the person's relative already holds a position, when such employment would result in any of the following: a. A direct or indirect supervisory relationship; b. The two employees having job duties which require performance of shared duties on the same or related work assignment; c. Both employees having the same immediate supervisor; or d. A potential for creating an adverse impact on supervision, safety, security, morale or efficiency that is greater for relatives than for unrelated persons. Section 3. Policy Concerning Employees Who Become Spouses or Domestic Partners Subdivision 1. If two City employees who work in the same department become spouses or domestic partners (pursuant to Family Code sections 297, et seq.) or step - relatives, the department director has discretion to transfer one of the employees to a similar position in another department. Although the wishes City of Saratoga Personnel Rules and Policies 71 Updated December 2012 378 Article 17. Employment of Relatives of the employees in question will be given consideration, the department director retains sole discretion to determine which employee is to be transferred based upon City needs, operations, or efficiency. Notwithstanding any provision in these Policies, any such transfer that results in a salary reduction is not disciplinary and is not subject to any grievance or appeal. Subdivision 2. If continuing employment of both employees cannot be accommodated in a manner the department director finds to be consistent with the City's interest in the promotion of safety, security, morale, and efficiency, then the department director, with the authorization of the City Manager, retains discretion to separate one employee from City employment. Absent the resignation of one employee, the less senior employee will be separated. Notwithstanding any provision in these Policies, any such separation is not considered to be disciplinary and is not subject to any grievance or appeal. City of Saratoga Personnel Rules and Policies 72 Updated December 2012 379 Article 18. Use of City Property and Equipment ARTICLE 18. USE OF CITY PROPERTY AND EQUIPMENT Section 1. Policy Subdivision 1. City property is to be used only for conducting City business unless otherwise authorized. City property includes, but is not limited to: telephones, faxes, copiers, desks, computers (including hardware and software), file cabinets, lockers, communications stored or transmitted on City property (such as e -mails and voice - mails), vehicles, maintenance equipment, tools, supplies, and any other City property used by City employees in their work. Employees do not have a reasonable expectation of privacy when using City property or equipment. Subdivision 2. City property may be monitored and searched at any time and for any reason. Messages sent or received on City equipment may be saved and reviewed by others and may be subject to public disclosure under the Public Records Act. As a result, City employees have no expectation of privacy in the messages sent or received on City property or equipment. Subdivision 3. Every City employee is required to adhere to all City rules and policies while on City property or using City property or equipment. Section 2. Use of Communications Equipment Subdivision 1. Minimal Personal Use of Communications Equipment Permitted City employees may use City telephones and e -mail for personal use provided that the use: a. Is kept to a minimum and limited to break times or non working hours; b. Does not have any impact upon other City employees or operations; c. Allows the employee to more efficiently perform City work; d. Is not abusive, illegal, or inappropriate; and e. Does not have any cost impact to the City. Subdivision 2. Inappropriate Use of Communications Equipment Prohibited The following are examples of inappropriate and prohibited uses of the City's communications systems: a. Exposing others, either intentionally or unintentionally, to material which is unlawful, harassing, obscene or pornographic; City of Saratoga Personnel Rules and Policies 73 Updated December 2012 :1 Article 18. Use of City Property and Equipment b. Any use that would be offensive to a reasonable person because it involves an individual's race, religion, color, religious creed, sex, gender, gender expression, gender identity, sexual orientation (including heterosexuality, homosexuality and bisexuality, pursuant to Government Code section 12926 (r)), ethnic or national origin, ancestry, citizenship status, uniformed service member status, marital status, family relationship, pregnancy, age, medical condition, genetic information or characteristics, physical or mental disability (whether perceived or actual), or any other characteristic protected by applicable law; C. Communication of confidential City information to unauthorized individuals within or outside the City; d. Sending messages with content that conflicts with any City policies, rules or other applicable laws; e. Unauthorized attempts to access City data or systems; f. Theft, removal, unauthorized using or copying of, unauthorized deleting, or unauthorized modifying electronic files or data; g. Initiating or sustaining chain letters, and h. Intentionally misrepresenting one's identity, position or authority for improper or illegal acts. Section 3. Vehicle Safety Subdivision 1. The purpose of this section is to ensure the safe operation of City owned vehicles, as well as the operation of personal vehicles while on City business, to ensure the safety of drivers, passengers, and the public, and to minimize losses, damages, and claims against the City. Subdivision 2. Employees shall refrain from operating telephones (unless using a hand -free headset or a vehicle system that allows hands -free operation), laptop computers, navigational devices and any other device that may cause driver distraction while operating a City vehicle or while operating a privately owned vehicle in the course of conducting City business. No City Employee shall operate a cellular telephone without a hands -free device, unless the use is required due to an emergency as set forth in California Vehicle Code Section 23123. In the event of an emergency that qualified under California Vehicle Code Section 23123, drivers shall make every attempt to properly park their vehicle prior to using such devices. City of Saratoga Personnel Rules and Policies 74 Updated December 2012 381 Article 19. Outside Employment ARTICLE 19. OUTSIDE EMPLOYMENT Section 1. Policy An employee shall not engage in any employment which is inconsistent, incompatible, or in conflict with his or her duties as a City officer or employee, or with the duties, functions, or responsibilities of the City. Employment may include activities which violate the terms of the policy even if no compensation is received. Section 2. Definition of Outside Employment or Activity "Outside employment" is any work performed by a City employee outside of his or her City employment. Section 3. Prohibited Types of Outside Employment or Activities The City prohibits any outside employment or activity that involves: a. The use of City time, facilities, equipment and supplies, or the badge, uniform, prestige, authority, or influence of his or her City office or employment; b. Receipt or acceptance by the officer or employee of any bribe, payment, money; item of value, or other consideration, from any person or entity other than the City, for the performance of an act which the officer or employee, if not performing such act, would be required or expected to render in the regular course or hours of his or her City employment or as a part of his or her duties as an officer or employee; C. The performance of an act, not in his or her capacity as a City officer or employee, which may later be subject directly or indirectly to the control, inspection, review, audit, or enforcement by the officer or employee or any other officer or employee of the City; d. Such time demands as would render performance of his or her duties as a City officer or employee less efficient; e. Any act, whether or not for monetary compensation or other value or consideration, which is inconsistent, incompatible, in conflict with his or her duties for the City. City of Saratoga Personnel Rules and Policies 75 Updated December 2012 :i Article 19. Outside Employment Section 4. Request to Pursue Outside Employment or Activity Subdivision 1. Any employee interested in outside employment or activity shall submit a written application to the City Manager, on a form provided by the City, stating the following: a. Type or nature of employment or activity; b. Name of prospective employer or organization; C. Location of employment or activity, including physical and mailing address, email, and telephone number; and d. Time period of engaging in including average number of hours outside employment or activity. the outside employment or activity, per week that will be spent in the Subdivision 2. The City Manager's decision will be based on the factors contained in this policy. A notation regarding the City Manager's decision will be placed in the employee's personnel file. The employee's request must be re- submitted when any of the required information changes or when the time period on the application expires. Authorization granted pursuant to this policy is revocable at any time. ARTICLE 20. EMPLOYEE POLITICAL ACTIVITIES Section 1. Policy The City prohibits: a. Employees and officers from engaging in political activities during working hours. b. Political campaigning in City buildings or on premises adjacent to City buildings; and C. An employee or officer from using his or her office to coerce or intimidate public employees to promote, propose, oppose, or contribute to any political cause or candidate. Section 2. Examples of Prohibited Conduct a. Participation in political activities of any kind while in City uniform; b. Participation in political activities during working hours; C. Participation in political activities on City worksites; City of Saratoga Personnel Rules and Policies 76 Updated December 2012 383 Article 20. Employee Political Activities d. Placing or distributing political communications on City property; e. Using city equipment to make political communications; f. Soliciting a political contribution from an officer or employee of the City, or from a person on a City employment list, with knowledge that the person from whom the contribution is solicited is a City officer or employee; g. Favoring or discriminating against any employee because of political opinions or affiliations; h. Interfering with any election; or L Attempting to trade job benefits for votes. Section 3. Examples of Permitted Conduct a. Expressing opinions on all political subjects or candidates; b. Becoming a candidate for any local, state, or national election; C. Contributing to political campaigns; d. Joining and participating in the activities of political organizations; e. Requesting, during off -duty time, political contributions, through the mail or other means, from City officers or employees, if the solicitation is part of a solicitation made to a significant segment of the public which may include City officers or employees; If. Soliciting or receiving during off -duty time, political contributions from a City employee organization if the funds, when collected, were not earmarked for a clearly identifiable candidate for a federal, state or local office; or g. Soliciting or receiving, during off -duty time, political funds or contributions to promote the passage or defeat of a ballot measure which would affect the rate of pay, hours of work, retirement, civil service, or other working conditions of City officers or employees. City of Saratoga Personnel Rules and Policies 77 Updated December 2012 ., Article 21. Discipline Policy ARTICLE 21. DISCIPLINE POLICY Section 1. Policy Coverage The following categories of persons can be terminated at -will and have no rights to any of the pre- or post - disciplinary processes or procedures in this Policy: (1) temporary employees; (2) probationary employees (3) any person who serves pursuant to a contract; and (4) any person who is designated "at- will" in any City policy, document, acknowledgement, memorandum of understanding, resolution or ordinance. Notwithstanding any provision in this policy, any regular employee who is exempt from the overtime provisions of the Fair Labor Standards Act (FLSA) and who is paid on a salary basis, is not subject to any disciplinary penalty which is inconsistent with his or her FLSA overtime - exempt status. Section 2. Causes for Discipline Regular employees may be counseled, advised against, reprimanded, suspended, demoted or discharged for disciplinary causes. The City does not intend for this policy to prohibit or regulate any activity or comments that are protected by applicable law. Nothing in this policy makes unlawful any employee activity protected by applicable law (including but not limited to activity or comments protected by the Constitution, activity or comments protected by other applicable laws, and comments about wages, hours, or terms or conditions of employment and protected and concerted activity protected by applicable law). This policy will not be interpreted in a manner as to restrict or regulate employee behavior or comments protected by applicable law. The list of disciplinary causes below is not all inclusive. 1. Violation of the City's Personnel Rules and Policies, Code of Ethics or any department rule, City administrative policy or City regulation, ordinance or resolution; 2. Absence without authorized leave per Article 13. Leaves of Absence, Section 12. Unauthorized Leave; 3. Excessive absenteeism and /or tardiness per Article 11. Work Week, Hours of Work, and Absence Control, Section 3. Absence Control, Subdivision 2. Excessive Tardiness /Absenteeism; 4. Use of leave in a manner not authorized; City of Saratoga Personnel Rules and Policies 78 Updated December 2012 385 Article 21. Discipline Policy 5. Falsification of records or making any false statement, omission or misrepresentation of a material fact, such as, for example, providing wrong or misleading information or other fraud in securing appointment, promotion, or maintaining employment, or falsifying timecards, reimbursement of expense requests, or any other employment - related or City - related document; 6. Unsatisfactory job performance such as, for example, incompetency or failure to comply with the minimum standards required of employee's position, unsatisfactory, careless, or negligent job performance, inexcusable neglect of duties required of employee's position; 7. Inefficiency such as, for example, inattention to duties, loafing, idling, or wasting time during work hours; 8. Malfeasance (a legally unjustified or harmful act performed by a public official or employee) or misconduct, which shall be deemed to include, but shall not be limited to the following acts or omissions: a. Conviction of a felony. "Conviction" shall be construed to be a determination of guilt of the accused by a court, including a plea of guilty or nolo contendere (no contest), regardless of sentence, grant of probation, or otherwise. b. Damaging City property, equipment, or vehicles, or wasting City supplies through negligence or misconduct. 9. Insubordination or refusal to comply with instructions given by a supervisor or failure to perform reasonable duties to which assigned; 10. Dishonesty; 11. Theft; 12. Violation of the City's or a department's confidentiality policies, or disclosure of confidential City information to any unauthorized person or entity. Each employee is responsible for safeguarding confidential information obtained during employment. It is the responsibility of the employee not to reveal or divulge such information unless it is necessary for the employee to do so in the performance of their duties or unless the disclosure is protected by law (such as, for example, concerted and protected labor activity disclosures and disclosures protected by Constitutional provisions or other applicable law); 13. Misuse of any City property, including, but not limited to: physical property, tools, equipment, vehicles, computers, City communication systems, or Intellectual Property; 14. Mishandling of public funds; City of Saratoga Personnel Rules and Policies 79 Updated December 2012 :. Article 21. Discipline Policy 15. Falsifying any City record; 16. Discourteous treatment of the public or other employees; 17. Failure to cooperate with employee's supervisors or fellow employees; 18. Violation of the City's Drug -Free Workplace Policy; 19. Violation of the City's Use of City Property and Equipment Policy; 20. Violation of the City's Policy Against Harassment, Discrimination and Retaliation; 21. Violation of the City's Workplace Security Policy; 22. Unapproved outside employment or activity that violates the City's Outside Employment policy, or other enterprise that constitutes a conflict of interest with service to the City or an incompatible activity; 23. Any conduct that impairs, disrupts or causes discredit to the City, to the employee's City employment, to the public service, or to another employee's employment; 24. Failure to comply with OSHA Safety Standards, City safety and risk management policies, and the City's Injury and Illness Prevention Plan (IIPP); 25. Failure to report to his or her supervisor any employee conduct that results in contact with criminal authorities (such as police) which may affect employment with the City; 26. Altering, falsifying, and tampering with time records, or recording time on another employee's time record; or 27. Working overtime without prior authorization. 28. Accessing software files, information, documents, communications, and email messages without specific authorization of the employee or the City Manager, except for IT- required access for system administration purposes only. City of Saratoga Personnel Rules and Policies 80 Updated December 2012 387 Article 21. Discipline Policy Section 3. Investigation When an act of an employee that may be cause for disciplinary action is reported to the City; it may be necessary to conduct an investigation to determine the facts and /or to confirm the allegations. The investigation may be performed by the City or independent investigator. The objective of the investigation shall be to determine if a disciplinary offense did occur, the nature of the offense, and that it was committed by the employee to be disciplined. Investigations shall be conducted as confidential as possible. If the incident appears to be of criminal nature, the City Attorney and the Santa Clara County Sherriff shall be notified immediately and subsequent investigation shall be under the direction of the Sherriff. The City may place an employee on administrative leave with pay pending an investigation when the City believes that the employee's presence at the work site is detrimental to the investigation or the operations of the City. Section 4. Counseling and Discipline Counseling includes any informal discussion with the employee which is designed to assist the employee to develop or improve job skills, abilities or conduct. The purpose of the counseling may be to clarify City rules, solve a problem, or discuss particular weaknesses. Counseling may be provided by the employee's supervisor, department director, Human Resources Manager, or an independent professional selected by the City. Progressive discipline is warranted when counseling has failed and performance standards are not met or when the employee's conduct warrants more serious action. Progressive discipline advises the employee of the action needed to improve the deficiency and a time table for improvement. While most disciplinary infractions are subject to progressive discipline some offenses, because of their nature or severity, are recognized as subject to immediate disciplinary suspension or discharge by the City. The specific circumstances of the situation will determine if the appropriate discipline is a disciplinary suspension or discharge. Subdivision 1. Verbal Warning If the infraction is serious, the verbal warning may not be the first step in the progressive discipline process. The employee's supervisor will give a verbal warning, which includes specific requirements for improvement. Verbal warnings are given with the expectation the problem can be solved, but it is the employee's responsibility to solve the problem. City of Saratoga Personnel Rules and Policies 81 Updated December 2012 MW Article 21. Discipline Policy The supervisor will provide the Human Resources Division written documentation of the verbal warning to be retained in the employee's personnel file. A verbal warning cannot be appealed. If a verbal warning does not result in appropriate correction and within an appropriate time frame, a written warning may be issued by the supervisor in a meeting with the employee. Subdivision 2. Written Warning If the infraction is serious, the written warning may be the first step in the progressive discipline process. The written warning includes an explanation of what behavior needs to be corrected, how the situation must be corrected and timeframe by which it is anticipated that the situation will be corrected. Written warnings are given with the expectation the problem can be solved, but it is the employee's responsibility to solve the problem. The supervisor will provide the Human Resources Division a copy of the written warning to be retained in the employee's personnel file. A written warning cannot be appealed under this policy. The employee has the option to submit a written rebuttal to the written warning to the Supervisor with a copy provided to the Human Resources Division to be retained in the employee's personnel file. Subdivision 3. Disciplinary Suspension A department director may suspend an employee without pay from his or her position for cause. The duration of suspensions vary depending upon the seriousness of the infraction. Disciplinary suspensions are retained in the employee's personnel file. In accordance with the Fair Labor Standards Act, exempt employees may not be suspended for less than one week (except in the case of major safety violations). Employees have the right to the conference and appeal process outlined in this Article, Section 5. Skelly Process — Pre - Disciplinary Procedure for Suspension or Discharge. Subdivision 4. Discharge The City may discharge an employee from his or her position for cause. Documents related to discharge shall become a part of an employee's personnel file. Employees have the right to the conference and appeal process outlined in this Article, Section 5. Skelly Process — Pre - Disciplinary Procedure for Suspension or Discharge. City of Saratoga Personnel Rules and Policies 82 Updated December 2012 :• Article 21. Discipline Policy Section 5. Skelly Process — Pre - Disciplinary Procedure for Suspension or Discharge For a discharge or a suspension for which Skelly rights are applicable, only regular employees (non probationary employees and non at -will employees) have the right to the conference and appeal processes outlined in this Section. Subdivision 1. Notice of Intent to Discipline The employee will be provided a written notice of intent to discipline, copied to the City Manager that contains the following: a. The level of discipline intended to be imposed; b. The specific charges upon which the intended discipline is based; C. A summary of the misconduct upon which the charges are based; d. A copy of written materials, reports, or documents upon which the intended discipline is based; e. Notice of the employee's right to respond to the department director regarding the charges within 5 calendar days from the date of the Notice, either by requesting an informal conference, or by providing a written response, or both; f. Notice of the employee's right to have a representative of his or her choice at the informal conference, should he or she choose to respond orally; and g. Notice that the failure to respond at the time specified shall constitute a waiver of the right to respond prior to the imposition of discipline. Subdivision 2. Employee's Response and the Skelly Conference a. If the employee requests an informal conference to respond orally to the charge(s), the conference must be scheduled at least 7 calendar days after the date of the Notice of Discipline (see Subdivision 1). The conference will be an informal meeting with the department director, at which the employee has an opportunity to rebut the charges against him or her and present any mitigating circumstances. The department director will consider the employee's presentation before recommending any final disciplinary action. City of Saratoga Personnel Rules and Policies 83 Updated December 2012 390 Article 21. Discipline Policy b. The employee's failure to make an oral response at the arranged conference time, or the employee's failure to cause his or her written response to be delivered by the date and time specified in the notice, constitutes a waiver of the employee's right to respond prior to the imposition of the discipline. In that case, the proposed disciplinary action will be imposed on the date specified. Subdivision 3. Final Notice of Discipline a. After considering the employee's response, or after the expiration of the employee's time to respond to the Notice of Intent, the department director shall: (1) dismiss the notice of intent and take no disciplinary action against the employee or (2) modify the intended disciplinary action or (3) impose the intended disciplinary action. In any event, the department director shall prepare and provide the employee with a notice, copied to the City Manager that contains the following: b. The level of discipline, if any, to be imposed and the effective date of the discipline; C. The specific charges upon which the discipline is based; d. A summary of the misconduct upon which the charges are based; e. A copy of written materials, reports, or documents upon which the discipline is based; and f. A statement of the nature of the employee's right to appeal. Section 6. Evidentiary Appeal to the City Manager Subdivision 1. Request for Appeal Hearing A regular, for -cause employee may appeal from a final notice of discipline by delivering a written answer to the charges and a request for appeal to the City Manager or designee. The written answer and request for appeal must be received no later than 10 calendar days from the date of the department director's decision. Subdivision 2. Delegation The City Manager or designee reserves the right to delegate his or her authority to decide the appeal to an outside hearing officer to be chosen by the City Manager or designee. Subdivision 3. Date and Time of the Appeal Hearing The City Manager will set a date for an appeal hearing within a reasonable time after receipt of a timely written answer and request for appeal. An employee who, having filed a timely written answer and request for appeal, has been notified of the time and place of the appeal hearing, and who fails to appear personally at City of Saratoga Personnel Rules and Policies 84 Updated December 2012 391 Article 21. Discipline Policy the hearing, may be deemed to have abandoned his or her appeal. In such a case, the City Manager may dismiss the appeal. Subdivision 4. Identification of Issues, Witnesses and Evidence No later than 10 weekdays (two weeks) prior to the appeal hearing, each party will provide each other and the City Manager with that party's statement of the issues to be decided, a list of all witnesses anticipated to be called (except rebuttal witnesses), a brief summary of the subject matter of the testimony of each witness, and a copy of all evidence (except rebuttal evidence) anticipated to be submitted at the hearing. The City will use numbers to identify its evidence; the employee shall use alphabet letters. Neither party will be permitted to call any witness during the hearing that has not been identified pursuant to this section, nor use any exhibit not provided pursuant to this section, unless that party can show that they could not have reasonably anticipated the need for the witness or exhibit. The City Manager will state at the beginning of the hearing his or her decision as to the precise issue(s) to be decided. Subdivision 5. Conduct of the Appeal Hearing a. Subpoenas The City Council has authority, and may delegate the authority to the City Clerk, to issue subpoenas in the name of the City prior to the commencement of the hearing. Each party is responsible for serving his /her /its own subpoenas. City employees who are subpoenaed to testify during working hours will be released with pay to appear at the hearing. City employees who are subpoenaed to testify during non- working hours will be compensated for the time they actually testify unless the City agrees to a different arrangement. b. Continuances The City Manager may continue a scheduled hearing only upon good cause shown. C. Record of the Proceedings All disciplinary hearings may, at the discretion of the parties, be either recorded by a court reporter or tape recorded. d. The City Manager's Authority During the Hearing The City Manager has the authority to control the conduct of the hearing and to affirm, modify, or revoke the discipline. e. Conduct of the Hearing (1) The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses, but hearings shall be conducted in a manner the City Manager decides is the most conducive to determining the truth. City of Saratoga Personnel Rules and Policies 85 Updated December 2012 392 Article 21. Discipline Policy (2) Any relevant evidence may be admitted if it is the type of evidence upon which responsible persons are accustomed to rely upon in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper the admission of such evidence over objection in civil actions. (3) Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence, but over timely objection shall not be sufficient in itself to support a finding, unless such evidence would be admissible over objection in civil actions. An objection is timely if made at the time the hearsay is offered as evidence. (4) All privileges recognized in civil proceedings apply. (5) Irrelevant and unduly repetitious evidence may be excluded. (6) The City Manager shall determine relevancy, weight and credibility of testimony and evidence. (7) During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing upon the request of either party. (8) All witnesses shall be sworn in for the record prior to testifying at the hearing. The City Manager or the court reporter shall request each witness to raise his or her right hand and respond to the following: "Do you swear or affirm that the testimony that you are about to give at this hearing is the truth, the whole truth, and nothing but the truth ?" f. Burden of Proof at the Hearing The City has the burden of proof by a preponderance of the evidence. g. Right to Due Process The employee shall have the following due process rights during the hearing: (1) The right to be represented by legal counsel or another chosen representative, at his or her own expense; (2) The right to call and examine witnesses on his or her behalf; (3) The right to introduce evidence; (4) The right to cross - examine opposing witnesses on any matter relevant to the issues; City of Saratoga Personnel Rules and Policies 86 Updated December 2012 393 Article 21. Discipline Policy (5) The right to impeach any witness regardless of which party first called him or her to testify; and (6) The right to rebut evidence against him or her. h. Hearing to be Closed to the Public The hearing will be closed to the public unless the employee requests that it be open. L Presentation of the Case The parties will address their remarks, evidence, and objections to the City Manager. All parties and their counsel or representatives shall not disparage the intelligence, morals, or ethics of their adversaries, the representatives of the adversaries, or of the City Manager. The City Manager may terminate argument at any time and issue a ruling regarding an objection or any other matter. The City Manager may alter the order of witnesses, limit redundant or irrelevant testimony, or directly question the witness. The hearing shall proceed in the following order unless the City Manager directs otherwise: (1) The City shall be permitted to make an opening statement. (2) The employee shall be permitted to make an opening statement. (3) The City shall produce its evidence (followed by cross - examination of each witness by the employee). (4) The employee shall produce his or her evidence (followed by cross - examination of each witness by the City). (5) The City, followed by the employee, may offer rebuttal evidence. (6) Closing arguments of no more than 20 minutes (or other time limit set by the City Manager) shall be permitted at the discretion of the City Manager. The City shall have the right to argue first, the employee may argue second, and the City may reserve a portion of its argument time for rebuttal. j. Written Briefs by the Parties The City Manager or the parties may request that written briefs be submitted. The City Manager will determine whether to allow written briefs, the deadline for submitting briefs, and the page limit for briefs. Subdivision 5. Written Findinqs and Decision The City Manager shall render a statement of written findings and decision within 30 days after the City of Saratoga Personnel Rules and Policies 87 Updated December 2012 394 Article 21. Discipline Policy hearing has been completed and the briefs, if any, have been submitted. The City Manager's decision is final. Subdivision 6. Proof of Service of the Written Findings and Decision The City Manager shall send his or her final statement of written findings and decision, along with a proof of service of mailing, to each of the parties and to each of the parties' representatives. A copy shall also be distributed to the Human Resources Manager. Subdivision 7. Statute of Limitations The City Manager's written findings and decision is final. There is no process for reconsideration. Pursuant to Code of Civil Procedure section 1094.6, the parties have 90 days from the date of the proof of service of mailing of the written findings and decision to challenge the decision in the Superior Court in and for the County of Santa Clara. City of Saratoga Personnel Rules and Policies 88 Updated December 2012 395 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY ARTICLE 22. EMPLOYER - EMPLOYEE RELATIONS POLICY Section 1. Policy Subdivision 1. Statement of Purpose This Policy implements Chapter 10, Division 4, Title 1 of the Government Code of the State of California (Sections 3500 et seq.) captioned "Local Public Employee Organizations," by providing orderly procedures for the administration of employer - employee relations between the City and its employee organizations. For subjects governed by these rules, these rules prevail over PERB regulations under Government Code section 3509(a) unless applicable law provides a contrary result. However, nothing contained herein shall be deemed to supersede the applicable provisions of state or City law which establish and regulate City employment or which provide for other methods of administering employer - employee relations. This Policy is intended, instead, to strengthen employer - employee relations through the establishment of uniform and orderly methods of communications between employees, employee organizations and the City. It is the purpose of this Policy to provide procedures for meeting and conferring in good faith with Exclusively Recognized Employee Organizations regarding matters that directly and significantly affect and primarily involve the wages, hours and other terms and conditions of employment of employees in appropriate units and that are not preempted by federal or state law. However, nothing in this Article shall be construed to restrict any legal or inherent exclusive City rights with respect to matters of general legislative or managerial policy, which include among others: The exclusive right to determine the mission of its constituent departments, commissions, and boards; set standards of service; determine the procedures and standards of selection for employment; direct its employees; take disciplinary action; relieve its employees from duty because of lack of work or for other lawful reasons; determine the content of job classifications; subcontract work; maintain the efficiency of governmental operations; determine the methods, means and personnel by which government operations are to be conducted; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. Section 2. Definitions As used in this Article, the following terms shall have the meanings indicated: a. "Appropriate unit" means a unit of employee classes or positions, established pursuant to Section 3. b. "City" means the City of Saratoga, and, where appropriate, refers to the City Council or any duly authorized City representative. City of Saratoga Personnel Rules and Policies 89 Updated December 2012 •V] Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY C. "Confidential Employee" means an employee who, in the course of his or her duties, has access to confidential information relating to the City's administration of meeting and conferring, grievances, and employer - employee relations. A confidential employee will either be excluded from units (such as the Human Resources Manager) or will have a limited role as appropriate to protect confidential information. d. "Consult /Consultation in Good Faith" means to communicate orally or in writing with all exclusively recognized employee organizations for the purpose of presenting and obtaining views or advising of proposed actions in a good faith effort to reach a consensus. e. "Day" means calendar day unless expressly stated otherwise. f. "City Manager" specific to the employer - employee relations policy means the City Manager or his /her duly authorized representative. g. "Employee Organization" means either of the following: (1) Any organization that includes City employees and that has as one of its primary purposes representing those employees in their relations with the City, or (2) any organization that seeks to represent City employees in their relations with the City. h. "Exclusive representative" means an employee organization that has been recognized or certified as an exclusive or majority bargaining agent pursuant to MMBA (Section 32016 of PERB regulations). i. "Exclusively Recognized Employee Organization" means an employee organization which has been formally acknowledged by the City as the sole employee organization representing the employees in an appropriate representation unit under this Article Section 3, Subdivisions four or five. The Exclusively Recognized Employee Organization has the exclusive right to meet and confer in good faith concerning statutorily required subjects pertaining to unit employees, and has the corresponding obligation of fairly representing such employees. j. "Impasse" means that the representatives of the City and an Exclusively Recognized Employee Organization have reached a point in their meeting and conferring in good faith where the parties have exhausted the prospects of reaching agreement and their differences on matters to be included in a Memorandum of Understanding, and concerning which they are required to meet and confer, remain so substantial and prolonged that further meeting and conferring would be futile. A deadlock on major issues may suffice even if the parties may make progress on minor issues. City of Saratoga Personnel Rules and Policies 90 Updated December 2012 397 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY k. "Director Employee" means an employee having responsibility for formulating, administering or managing the implementation of City policies and programs. I. "Proof of Employee Support" means (1) an authorization card recently signed and personally dated by an employee, or (2) a verified authorization petition or petitions recently signed and personally dated by an employee, or (3) employee dues deduction authorization, using the payroll register for the period immediately prior to the date a petition is filed hereunder, except that dues deduction authorizations for more than one employee organization for the account of any one employee shall not be considered as proof of employee support for any employee organization. The only authorization which shall be considered as proof of employee support hereunder shall be the authorization last signed by an employee. The words "recently signed" shall mean within ninety (90) days prior to the filing of a petition. M. "Supervisory Employee" means any employee having authority, as authorized by the City Manager, in the interest of the City, to hire, transfer, suspend, layoff, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them, or to adjudge their grievances, or effectively to recommend such action if, in connection with the foregoing, the exercise of such authority is not of a merely routine or clerical nature, but requires the use of independent judgment. Section 3. Representation Proceedings Subdivision 1. Filing of Recognition Petition by Employee Organization An employee organization which seeks to be formally acknowledged as an Exclusively Recognized Employee Organization representing the employees in an appropriate unit shall file a petition with the City Manager containing the following information and documentation: 1. Name and address of the employee organization; 2. Names and titles of its officers; 3. Names of employee organization representatives who are authorized to speak on behalf of the organization; 4. A statement that the employee organization has, as one of its primary purposes, the responsibility of representing employees in their employment relations with the City; 5. A statement whether the employee organization is a chapter of, or affiliated directly or indirectly in any manner, with a local, regional, state, City of Saratoga Personnel Rules and Policies Updated December 2012 •; 91 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY national or international organization, and, if so, the name and address of each such other organization; 6. Certified copies of the employee organization's constitution and bylaws; 7. A designation of those persons, not exceeding two in number, and their addresses, to whom notice sent by regular United States mail will be deemed sufficient notice to the employee organization for any purpose; 8. A statement that the employee organization has no restriction on membership based on race, color, religion, religious creed, sex, gender, gender identity, gender expression, national origin, age, sexual orientation, genetic information or characteristics, mental or physical disability or medical condition and any other characteristic(s) protected under applicable law; 9. The job classifications or position titles of employees in the unit claimed to be appropriate and the approximate number of member employees therein; 10. A statement that the employee organization has in its possession proof of employee support as herein defined to establish that a majority of the employees in the unit claimed to be appropriate have designated the employee organization to represent them in their employment relations with the City. Such written proof shall be submitted for confirmation to the City Manager or to a mutually agreed upon disinterested third party; and 11. A request that the City Manager formally acknowledge the petitioner as the Exclusively Recognized Employee Organization representing the employees in the unit claimed to be appropriate for the purpose of meeting and conferring in good faith. 12. The Petition, including the proof of employee support and all accompanying documentation, shall be declared to be true, correct and complete, under penalty of perjury, by the duly authorized officer(s) of the employee organization executing it. Subdivision 2. City Response to Recognition Petition Upon receipt of the Petition, the City Manager shall determine whether: 1. There has been compliance with the requirements of the Recognition Petition, and 2. The proposed representation unit is an appropriate unit in accordance with Section 3, Subdivision 7 of this Article. City of Saratoga Personnel Rules and Policies 92 Updated December 2012 399 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY a. If an affirmative determination is made by the City Manager on the foregoing two matters, he /she shall so inform the petitioning employee organization, shall give written notice of such request for recognition to the employees in the unit and shall take no action on said request for thirty (30) days thereafter. b. If either of the foregoing matters are not affirmatively determined, the City Manager shall offer to consult thereon with such petitioning employee organization and, if such determination thereafter remains unchanged, shall inform that organization of the reasons therefore in writing. (1). The petitioning employee organization may appeal such determination in accordance with Section 3, Subdivision 10 of this Policy. Subdivision 3. Period for Challenging Petition 1. Within thirty (30) days of the date written notice was given to affected employees that a valid recognition petition for an appropriate unit has been filed, any other employee organization may file a competing request to be formally acknowledged as the exclusively recognized employee organization of the employees in the same or in an overlapping unit (one which corresponds with respect to some, but not all the classifications or positions set forth in the recognition petition being challenged), by filing a petition evidencing proof of employee support in the proposed unit of at least thirty percent (30 %) and otherwise in the same form and manner as set forth in Section 3, Subdivision 1. a. If such challenging petition seeks establishment of an overlapping unit, the City Manager shall call for a hearing on such overlapping petitions for the purpose of ascertaining the more appropriate unit, at which time the petitioning employee organizations shall be heard. b. Thereafter, the City Manager shall determine the appropriate unit or units in accordance with the standards in Section 3, Subdivision 7. c. The petitioning employee organizations shall have fifteen (15) days from the date notice of such unit determination is communicated to them by the City Manager to amend their petitions to conform to such determination or to appeal such determination pursuant to Section 3 Subdivision 10. Subdivision 4. Granting Recognition without an Election City of Saratoga Personnel Rules and Policies 93 Updated December 2012 we] Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY 1. If the proof of employee support shows that a majority of the employees in the appropriate unit have designated the petitioning employee organization to represent them, and if no other employee organization filed a challenging petition, the petitioning employee organization and the City Manager shall request the California State Mediation and Conciliation Service, or another agreed upon neutral third party, to review the count, form, accuracy and propriety of the proof of support. 2. If the neutral third party makes an affirmative determination, the City Manager shall formally acknowledge the petitioning employee organization as the Exclusively Recognized Employee Organization for the designated unit without an election. Subdivision 5. Election Procedure 1. The City Manager shall arrange for a secret ballot election to be conducted by a party agreed to by the City Manager and the concerned employee organization(s), in accordance with such party's rules and procedures subject to the provisions of this Policy. 2. All employee organizations who have duly submitted petitions which have been determined to be in conformance with the requirements of this Section 3 shall be included on the ballot. a. The ballot shall also reserve to employees the choice of representing themselves individually in their employment relations with the City. b. Employees entitled to vote in such election shall be those persons employed in regular positions within the designated appropriate unit who were employed during the pay period immediately prior to the date which ended at least fifteen (15) days before the date the election commences, including those who did not work during such period because of illness, vacation or other authorized leaves of absence, and who are employed by the City in the same unit on the date of the election. 3. An employee organization shall be formally acknowledged as the Exclusively Recognized Employee Organization for the designated appropriate unit following an election or run -off election if it received a numerical majority of all valid votes cast in the election. a. In an election involving three or more choices, where none of the choices receives a majority of the valid votes cast, a run -off election shall be conducted between the two choices receiving the largest City of Saratoga Personnel Rules and Policies 94 Updated December 2012 401 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY number of valid votes cast; the rules governing an initial election are also applicable to a run -off election. 4. There shall be no more than one valid election under this Policy pursuant to any petition in a 12 -month period affecting the same unit. 5. In the event that the parties are unable to agree on a third party to conduct an election, the election shall be conducted by the California State Mediation and Conciliation Service. a. Costs of conducting elections shall be borne in equal shares by the City and by each employee organization appearing on the ballot. Subdivision 6. Procedure for Decertification of Exclusively Recognized Employee Organization 1. A Decertification Petition, alleging that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in an established appropriate unit, may be filed with the City Manager in an "open period" as follows: (a) only during the month of March of any year following the first full year of recognition; (b) during the thirty (30) day period commencing one hundred twenty (120) days prior to the termination date of a Memorandum of Understanding then having been in effect three (3) years or less (which is typically during the month of March if the MOU expires on June 30); or (c) during the time that there is not a MOU in effect. 2. A Decertification Petition may be filed by two or more employees or their representative, or an employee organization, and shall contain the following information and documentation declared by the duly authorized signatory under penalty of perjury to be true, correct and complete: a. The name, address and telephone number of the petitioner and a designated representative authorized to receive notices or requests for further information. b. The name of the established appropriate unit and of the incumbent Exclusively Recognized Employee Organization sought to be decertified as a representative of that unit. c. An allegation that the incumbent Exclusively Recognized Employee Organization no longer represents a majority of the employees in the appropriate unit, and any other relevant and material facts relating thereto. City of Saratoga Personnel Rules and Policies 95 Updated December 2012 Eli Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY d. Proof of employee support that at least thirty (30 %) percent of the employees in the established appropriate unit no longer desire to be represented by the incumbent Exclusively Recognized Employee Organization. (1). Such proof shall be submitted for confirmation to the City Manager or to a mutually agreed upon disinterested third party within 10 days of the filing of the decertification petition. 3. An employee organization may, in satisfaction of the Decertification Petition requirements hereunder, file a Petition under this Section in the form of a Recognition Petition that evidences proof of employee support of at least thirty percent (30 %), that includes the allegation and information required under paragraph 2 (d) of this Subdivision, and otherwise conforms to the requirements of Section 3, Subdivision 1. a. The City Manager shall initially determine whether the Petition has been filed in compliance with the applicable provisions of this Section. (1) If his /her determination is in the negative, he /she shall offer to consult thereon with the representative(s) of such petitioning employees or employee organization and, if such determination thereafter remains unchanged, shall return such Petition to the employees or employee organization with a statement of the reasons therefore in writing. The petitioning employees or employee organization may appeal such determination in accordance with Section 3 Subdivision 10. The petitioning employees or employee organization may also submit a modified petition that addresses the concerns within 10 days. If the original petition is timely filed in an open period, the modified petition does not have to be filed in the open period. (PERB Dec. No. 2163) (2011). (2) If the determination of the City Manager is in the affirmative, or if his /her negative determination is reversed on appeal, he /she shall give written notice of such Decertification or Recognition Petition to the incumbent Exclusively Recognized Employee Organization and to unit employees. b. The City Manager shall thereupon arrange for a secret ballot election to be held on or about fifteen (15) days after such notice to determine the wishes of unit employees as to the question of decertification and, if a Recognition Petition was duly filed hereunder, the question of representation. Such election shall be conducted in conformance with Section 3 Subdivision 5. If a City of Saratoga Personnel Rules and Policies 96 Updated December 2012 403 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY numerical majority of all valid votes cast in a decertification election are in favor of decertifying the Exclusively Recognized Employee Organization, that Exclusively Recognized Employee Organization will no longer represent employees. c. During the "open period" specified in the first paragraph of this Subdivision, the City Manager may on his /her own motion, when he /she has reason to believe that a majority of unit employees no longer wish to be represented by the incumbent Exclusively Recognized Employee Organization, give notice to that organization and all unit employees that he /she will arrange for an election to determine that issue. (1) In such event any other employee organization may within fifteen (15) days of such notice file a Recognition Petition in accordance with this Section, the City Manager shall act on it in accordance with the requirements of Section 3 of this Article. 4. If, pursuant to this Subdivision, a different employee organization is formally acknowledged as the Exclusively Recognized Employee Organization, such organization shall be bound by all the terms and conditions of any Memorandum of Understanding then in effect for its remaining term. Subdivision 7. Policy and Standards for Determination of Appropriate Units 1. The policy objectives in determining the appropriateness of units shall be the effect of a proposed unit on the efficient operations of the City, the unit's compatibility with the primary responsibility of the City and its employees to effectively and economically serve the public, and the effective representation of employees based on recognized community of interest considerations. a. These policy objectives require that the appropriate unit shall be the broadest feasible grouping of positions that share an identifiable community of interest. Factors to be considered shall be: (1) Similarity of the general kinds of work performed, types of qualifications required, and the general working conditions. (2) History of representation in the City and similar employment; except however, that no unit shall be deemed to be an appropriate unit solely on the basis of the extent to which employees in the proposed unit have organized. City of Saratoga Personnel Rules and Policies 97 Updated December 2012 A Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY (3) Consistency with the organizational patterns of the City. (4) Effect of differing legally mandated impasse resolution procedures. (5) Number of employees and classifications, and the effect on the administration of employer - employee relations created by the fragmentation of classifications and proliferation of units. (6) Effect on the classification structure and impact on the stability of the employer - employee relationship of dividing a single or related classifications among two or more units. b. The City Manager shall, after notice to and consultation with affected employee organizations, allocate new classifications or positions, delete eliminated classifications or positions, and retain, reallocate or delete modified classifications or positions from units in accordance with the provisions of this Section. The decision of the City Manager shall be final. Subdivision 8. Procedure for Modification of Established Appropriate Units 1. Requests by employee organizations for modifications of established appropriate units may be considered by the City Manager only during the "open period" specified in Section 3 Subdivision 6. Such requests shall be submitted in the form of a Recognition Petition and, in addition to the requirements set forth in Section 3 Subdivision 1, shall contain a complete statement of all relevant facts and citations in support of the proposed modified unit in terms of the policies and standards set forth in Section 3 Subdivision 7 hereof. The City Manager shall process such petitions as other Recognition Petitions under Section 3 Subdivision 1. Such petitions will be processed under the Section 3 requirements and shall require a numerical majority of all valid votes cast in two categories to be in favor of the modification for the modification to be authorized. The two categories, each of which requires a numerical majority of the valid votes cast in each category, are: (1) employees who are currently in the unit; and (2) employees who are in the positions for which the modification is sought. 2. The City Manager may by his /her own motion propose that an established unit be modified. City of Saratoga Personnel Rules and Policies 98 Updated December 2012 405 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY a. The City Manager shall give written notice of the proposed modification(s) to any affected employee organization and shall hold a meeting concerning the proposed modification(s), at which time all affected employee organizations shall be heard. b. Thereafter the City Manager shall determine the composition of the appropriate unit or units in accordance with Section 3 Subdivision 7 and shall give written notice of such determination to the affected employee organizations. c. The City Manager's determination may be appealed as provided in Section 3 Subdivision 10. d. If a unit is modified pursuant to the motion of the Human Resources Manager hereunder, employee organizations may thereafter file Recognition Petitions seeking to become the Exclusively Recognized Employee Organization for such new appropriate unit or units pursuant to Section 3 Subdivision 1. Subdivision 9. Procedure for Processing Severance Requests 1. An employee organization may file a request to become the recognized employee organization of a unit alleged to be appropriate that consists of a group of employees who are already a part of a larger established unit represented by another recognized employee organization. a. The timing, form and processing of such request shall be as specified in Section 3 Subdivision 8 for modification requests. Subdivision 10. Appeals 1. An employee organization aggrieved by an appropriate unit determination of the City Manager; or an employee organization aggrieved by a determination of the City Manager that a Recognition Petition (Section 3 Subdivision 1), Challenging Petition (Section 3 Subdivision 3), Decertification Petition (Section 3 Subdivision 6), Unit Modification Petition (Section 3 Subdivision 8) or employees aggrieved by a determination of the City Manager that a Decertification Petition (Section 3 Subdivision 6) has not been filed in compliance with the applicable provisions of this Section, may, within ten (10) days of notice of the City Manager's final decision, request to submit the matter to mediation by the California State Mediation and Conciliation Service, or may, in lieu thereof or thereafter, appeal such determination to the City Council within fifteen (15) days of notice of the City Manager's determination or the termination of mediation proceedings, whichever is later. City of Saratoga Personnel Rules and Policies 99 Updated December 2012 W: Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY a. Appeals to the City Council shall be filed in writing with the City Clerk, and a copy thereof served on the City Manager and the City Human Resources Manager. 2. The City Council shall commence to consider the matter within thirty (30) days of the filing of the appeal. a. The City Council may, in its discretion, refer the matter to a third party to hear. The third party will provide the City Council with a written, advisory decision for City Council consideration. 3. Any decision of the City Council on the use of such procedure and /or any decision of the City Council determining the substance of the dispute shall be final and binding. Section 4. Administration Subdivision 1. Submission of Current Information by Recognized Employee Organizations All changes in the information filed with the City by an Exclusively Recognized Employee Organization under items 1. through 12. of its Recognition Petition under Section 3 Subdivision 1 of this Policy shall be submitted in writing to the City Manager within fourteen (14) days of such change. Subdivision 2. Employee Organization Activities -- Use of City Resources Access to City work locations and the use of City working time, facilities, equipment and other resources by employee organizations and those representing them shall be authorized only to the extent provided for in Memoranda of Understanding and /or administrative procedures, shall be limited to lawful activities consistent with the provisions of this Policy that pertain directly to the employer - employee relationship, shall not include such internal employee organization business as soliciting membership, campaigning for office, and organization meetings and elections, and shall not interfere with the efficiency, safety and security of City operations. Subdivision 3. Administrative Rules and Procedures The City Manager is hereby authorized to establish such rules and procedures as appropriate to implement and administer the provisions of this Policy after consultation with affected employee organizations. Section 5. Impasse Procedures 1. The parties will meet and confer in good faith and try to reach an agreed -upon MOU at least 4 months before the MOU expires (before March 1 of the year in which the MOU expires if the MOU expires June 30). If the meet and confer process has reached impasse, as defined in City of Saratoga Personnel Rules and Policies 100 Updated December 2012 407 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY these personnel rules, either party may initiate the impasse procedures by filing with the other party a written request for an impasse meeting, together with a statement of its position on all issues. 2. An impasse meeting shall then be scheduled promptly by the City Manager. a. The purpose of such meeting shall be: (1) To review the position of the parties in a final effort to reach agreement on a Memorandum of Understanding; and (2) If the impasse is not resolved, to discuss arrangements for the utilization of the impasse procedures provided herein. 3. Impasse procedures are as follows: a. If the parties agree to submit the dispute to mediation, and agree on the selection of a mediator, the dispute shall be submitted to mediation. (1) All mediation proceedings shall be private. (2) The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. (3) The costs of mediation shall be divided half to the City and half to the Exclusively Recognized Employee Organization. (Government Code section 3505.2). b. If the parties fail to agree to submit the dispute to mediation or fail to agree on the selection of a mediator, or fail to resolve the dispute through mediation within 30 days after the mediator is appointed, either party may submit the impasse to fact - finding. For subjects governed by these rules, these rules prevail over PERB regulations under Government Code section 3509(a), unless applicable law provides a contrary result. To the full extent allowed by applicable law, the City under the rules may initiate fact- finding unless applicable law determines that City- initiated fact - finding is unlawful under such a rule as this. c. The parties may agree on the appointment of one or more fact - finders. d. If they fail to so agree on one or more fact - finders, a fact - finding panel of three (3) shall be appointed under the process provided in City of Saratoga Personnel Rules and Policies 101 Updated December 2012 M Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY the MMBA: One member of the panel shall be appointed by the City Manager, one member shall be appointed by the Exclusively Recognized Employee Organization, and the third shall be selected under the MMBA process. If the third cannot be mutually agreed upon from the PERB list, the parties will alternatively strike names with the last name becoming the third fact finder. e. Fact - Finding Process (1) The fact - finding panel will oversee presentations to ensure efficient sharing of information. The fact - finding panel will encourage prepared summaries and budget spreadsheets. Exhibits are to be exchanged with the other party and provided to the 3 fact - finding panel members at least three days before the hearing begins. (2) The fact - finding panel will allow tape recording to maintain a record of the fact - finding hearing unless the parties agree to a court reporter with that cost to be equally divided between the City and the Exclusively Recognized Employee Organization. (3) Closing arguments will be verbal. No written briefs can be submitted after the hearing is closed. (4) The fact - finding panel will hear evidence on an issue -by -issue basis and make findings and recommendations on an issue - by -issue basis. f. The following constitute the jurisdictional and procedural requirements for fact - finding: (1) The fact - finders shall consider and be guided by applicable federal, state and local laws. (2) The fact - finders shall determine and apply the criteria in Government Code section 3504.5 in arriving at their findings and recommendations on each issue separately: (a) As relevant to the issues in dispute, the fact - finders' consideration of overall compensation and consideration of wage comparisons shall compare the total compensation, hours and conditions of employment of the employees involved in the fact - finding proceeding with the total compensation, hours and conditions of employment of other employees performing similar services in comparable public and private agencies in the same and City of Saratoga Personnel Rules and Policies 102 Updated December 2012 M Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY comparable communities. "Total compensation" shall mean all wage compensation, including but not limited to premium, incentive, minimum, standby, out -of -class and deferred pay; all paid leave time (including but not limited to PTO and holidays); all allowances, including but not limited to educational and uniform benefits; and employer payments for all health, welfare and pension benefits. (b) The fact - finders shall then adjust the results of the above comparisons based on the other criteria in Government Code section 3505.4. -(c) The fact - finder(s) shall then determine preliminary recommendations based on the comparisons as adjusted above which, however, shall be reduced as appropriate based on the financial ability of the City to implement them. In assessing the City's financial resources and ability, the fact - finder(s) shall be bound by the following: (1) other legislatively determined and projected demands on agency resources, i.e., budgetary priorities as established by the governing body; (2) allowance for equitable compensation increases for other employees and employee groups for the corresponding fiscal period(s); (3) revenue projections not to exceed currently authorized tax and fee rates for the relevant fiscal year(s); (4) assurance of sufficient and sound budgetary reserves; and (5) constitutional, and statutory limitations on the level and use of revenues and expenditures. (d) The fact - finders shall make written findings of fact, and advisory recommendations for the resolution of the issues in dispute, which shall be presented in terms of the criteria, adjustments, and limitations specified above. The written findings of fact and advisory recommendations are due within 30 days of the date the impasse is initially submitted to fact - finding, unless the parties agree in writing to a further extension of time. The fact - finding report is to be issued no later than 20 days before the MOU expires (June 10 of the year in which the MOU expires on June 30). Any member of a fact - finding panel shall be accorded the right to file dissenting written findings of fact and recommendations. The fact - finder or chairperson of the fact - finding panel shall serve such findings and recommendations on the City Manager and the designated representative of the Exclusively Recognized Employee Organization. If these parties have City of Saratoga Personnel Rules and Policies 103 Updated December 2012 410 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY not resolved the impasse within ten (10) days after service of the findings and recommendations upon them, the fact - finder or the chairperson of the fact - finding panel shall make them public by submitting them to the City Clerk for consideration by the City Council in connection with the City Council's legislative consideration of the impasse at a public hearing. 4. If the parties did not agree on mediation or the selection of a mediator and did not agree on fact - finding, or having so agreed, the impasse has not been resolved, the City Council may take such action regarding the impasse as it in its discretion it deems appropriate as in the public interest. Any legislative action by the City Council on the impasse shall be final and binding to the extent the law so provides. 5. The cost and expenses for the services of a mediator and fact - finder or chairperson of a fact - finding panel utilized by the parties, and other mutually incurred costs of mediation and fact - finding, shall be borne equally by the City and Exclusively Recognized Employee Organization. a. The cost for a fact - finding panel member selected by each party, and other separately incurred costs, shall be borne by such party. Section 6. Construction 1. This Policy shall be administered and construed as follows: a. Nothing in this Policy shall be construed to deny to any person, employee, organization, the City, or any authorized officer, body or other representative of the City, the rights, powers and authority granted by federal or state law. b. This Policy shall be interpreted so as to carry out its purpose as set forth in Section 1 and so as to comply with applicable law and binding legal interpretations. c. Nothing in this Policy shall be construed as making the provisions of California Labor Code Section 923 applicable to City employees or employee organizations, or of giving employees or employee organizations the right to participate in, support, cooperate or encourage, directly or indirectly, any strike, sickout or other total or partial stoppage or slowdown of work. In consideration of and as a condition of initial and continued employment by the City, employees recognize that any such actions by them are in violation of their conditions of employment except as expressly otherwise provided by legally preemptive state or contrary local law. In the City of Saratoga Personnel Rules and Policies 104 Updated December 2012 411 Article 22. EMPLOYER - EMPLOYEE RELATIONS POLICY event employees engage in such actions, they shall subject themselves to discipline up to and including termination, and may be replaced, to the extent such actions are not prohibited by preemptive law; and employee organizations may thereby forfeit rights accorded them under City law or contract. 2. If any provision of this Policy, or the application of such provision to any persons or circumstances, shall be held invalid, the remainder of this Policy, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. City of Saratoga Personnel Rules and Policies 105 Updated December 2012 412 Article 23. ANTI - BULLYING POLICY ARTICLE 23. ANTI - BULLYING POLICY Section 1. Policy Coverage The City of Saratoga considers workplace bullying unacceptable and will not tolerate behavior that the City determines to be bullying. It is the policy of the City of Saratoga that all employees should be able to work in an environment free of bullying that violates this policy. This policy applies to all employees of the City of Saratoga. It applies during normal working hours, at work related or sponsored functions, and while traveling on work related business. Any employee who feels he or she has been victimized by bullying is encouraged to report the matter to his or her supervisor or Human Resources. This policy does not preclude any speech, behavior, or postings protected by free speech rights or other Constitutional or legal protections. Section 2. Definition Workplace bullying is unwelcome or unreasonable behavior of individuals (or a group) directed towards an employee (or group of employees), which are intended to intimidate, degrade, humiliate, undermine, or which create a risk to the health or safety of the employee(s). Bullying behavior is often persistent and part of a pattern, but it can also occur as a single incident. It is usually carried out by an individual but can also be an aspect of group behavior. Workplace bullying may involve an abuse or misuse of power or involve employees bullying their peers, rather than a supervisor bullying an employee. Tough or demanding bosses are not bullies as long as they are directing work to obtain the best performance by setting high yet reasonable expectations. Some examples of bullying behavior may include: • Making false statements which are malicious. • Blame without factual justification. • Exclusion or isolating people from normal work interaction. • Behavior or communication that humiliates or demeans an employee. • Physical intimidation or aggressive behavior. • Using patronizing titles or nicknames. • Unwelcome, persistent teasing. • Setting impossible deadlines. • Spreading gossip, rumors and innuendo of a malicious nature. City of Saratoga Personnel Rules and Policies 106 Updated December 2012 413 Article 23. ANTI - BULLYING POLICY Context is important in understanding bullying. Section 3. Responsibilities I. Directors, managers, and supervisors • Ensure that all employees are aware of the anti - bullying policy and procedures • Ensure that any incident of bullying is dealt with regardless of whether a complaint of bullying has been received • Provide leadership and role - modeling in appropriate professional behavior • Respond promptly, sensitively and confidentially to all situations where bullying behavior is observed or alleged to have occurred II. Employees • Be familiar with and behave according to this policy • If you are a witness to bullying, report incidents to your supervisor or Human Resources • Where appropriate, speak to the alleged bully(ies) to object to the behavior Section 4. Corrective Action and /or Disciplinary Measures Where appropriate, an investigation will be undertaken and appropriate corrective action and /or disciplinary measures will be taken as necessary in accordance with Article 21. Discipline Policy. City of Saratoga Personnel Rules and Policies 107 Updated December 2012 414 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA, STATE OF CALIFORNIA, ADOPTING THE CITY OF SARATOGA UPDATED PERSONNEL RULES AND POLICIES WHEREAS, the City of Saratoga is authorized and directed under the provisions of Section 2- 40.050 (Adoption of Personnel Rules) of the Saratoga Municipal Code to adopt Personnel Rules and Policies (hereinafter referred to as the Personnel Rules) for the administration of the personnel system created in Chapter 2 -40 of the Saratoga Municipal Code; and WHEREAS, the City of Saratoga is authorized to amend previously established Personnel Rules pursuant to Section 2- 40.050 of the Saratoga Municipal Code; and WHEREAS, the objectives of these Personnel Rules are to comply with complex federal and state laws and regulations, ensure consistent treatment of employees, avoid misunderstandings that could potentially lead to lawsuits, orient new employees and serve as an ongoing employment resource, educate employees responsible for leading, supervising, managing, and /or directing the work of others and serve as an ongoing management resource, serve as an internal control so employees cannot take free license to make creative or unauthorized decisions, and establish legal protections; and WHEREAS, these Personnel Rules set forth procedures which insure similar treatment for those who compete for original employment and promotion, and define any of the obligations, rights, privileges and prohibitions which are placed upon all employees in the competitive service of the City of Saratoga; and WHEREAS, the Human Resources Manager, on behalf of the City, has satisfactorily met and consulted with the City's bargaining units, and if required by law, agreed and finalized Articles for review and adoption by the City Council; and WHEREAS, the City proposed, and the City's bargaining units agreed, to remove the Arbitration and Grievance Policy and Procedure from the Personnel Rules because this is addressed in the bargaining unit's duly executed Memorandum of Understanding ( "MOU ") as needed. The City's bargaining units also agreed to add Article 23. Anti -Bully Policy; and WHEREAS, many policies in the Personnel Rules are not modified by the terms and conditions of employees whose classifications are included in a bargaining unit's MOU or Employment Agreement or Policy adopted by the City Council by Resolution. However, if a provision of these Personnel Rules actually conflicts with any provision of an applicable MOU, resolution, law, City ordinance, Employment Agreement or Policy, or state or federal law, the MOU, resolution, 415 law, City ordinance, Employment Agreement or Policy, or state or federal law will prevail over the information contained in the Personnel Rules; and WHEREAS, at the same time, within the limits of administrative feasibility, considerable latitude shall be given the City Manager in the interpretation of these Rules and Policies pursuant to Saratoga Municipal Code Section 2- 20.050 (Powers and Duties of the city Manager); and WHEREAS, these Personnel Rules supersede /replace previous Personnel Rules and resolutions; and NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Saratoga hereby approves and adopts the City of Saratoga Personnel Rules and Policies dated December 5, 2012. The above and foregoing resolution was passed and adopted by the Saratoga City Council at a regular meeting held on December 5, 2012 by the following vote: AYES: NAYES: ABSTAIN: ABSENT: ATTEST: Crystal Morrow, City Clerk DATE: Chuck Page, Mayor HU !� -SAI? r , G 7y SARATOGA CITY COUNCIL MEETING DATE: December 5, 2012 AGENDA ITEM: DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: 2012/13 City Council Agency and Ad Hoc Assignments RECOMMENDED ACTION: Accept report and provide direction to staff. BACKGROUND: Every December, the City Council updates outside agency and ad hoc committee assignments. This provides the Council with the opportunity to add or remove assignments from the list and adjust individual Council Member assignments. The current list of City Council agency and ad hoc committee assignments, Resolution 11 -083, is attached to this report. Descriptions of the agency assignments are included in Attachment B. Attachment C includes a summary of when each of the outside agencies meet, including the current Council Members) assigned to each outside agency and ad hoc committee. Please review the list of assignments and submit assignment preferences to the Mayor by 5:00 p.m. on Tuesday, December 11, 2012. The final list of assignments for 2012/13 will be brought back for Council consideration at the December 19, 2012 meeting. FISCAL IMPACTS: 171,1 CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: City Council representatives to various agencies and assignments to ad hoc committees will remain unchanged. ALTERNATIVE ACTION(S): The City Council may choose to hold a separate meeting at which to discuss outside agency and ad hoc committee assignments. Page 1 of 2 417 FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A: Resolution 11 -083 Attachment B: Agency Assignment Descriptions Attachment C: Agency and Ad Hoc Committee Meeting Schedule Summary Page 2 of 2 an RESOLUTION 11 -483 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA APPOINTING COUNCIL REPRESENTATIVES TO AGENCIES AND AD HOC COMMITTEES FOR YEAR 2012 WHEREAS, representatives from the City Council serve on various agencies and ad hoc committees; and WHEREAS, the responsibility for representing the City Council should be shared by all members; and WHEREAS, the City Council annually reviews agency and ad hoc committee assignments to update and reassign members as needed; and WHEREAS, the City Council conducted its reorganization on December 7, 2011 . for the 2012 calendar year; and WHEREAS, on December 7, 2011, Council was asked to provide input to the Mayor on changes to agency and ad hoc committee assignments, including the addition or removal of assignments and adjustments to member assignments; NOW, THEREFORE, be it resolved that the City Council approves the City Council agency and ad hoc assignments presented at the December 21, 2011 City Council meeting and attached to this resolution and members of the Council hereby agree to their appointments through December 2012 or until amended. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 21" day of December 2011 by the following vote: AYES: Council Member Manny Cappello, Emily Lo, Howard Miller, Vice Mayor Jill Hunter, Mayor Chuck Page NOES: None ABSENT: None ABSTAIN: None - k'a Chuck Page, Mayor ATTEST: DATE: lI ry l Morrow, tity Clerk 419 2012 SARATOGA CITY COUNCIL AGENCY AND AD HOC ASSIGNMENT Mandatory Agency Assignments Council Member Alternate Association of Bay Area Governments Lo Page Chamber of Commerce Cappello Hunter County HCD Policy Committee Cappello Lo Hakone Foundation Board 1 Page * Hunter Hakone Foundation Executive Committee Page N/A KSAR Community Access TV Board Hunter Miller Library Joint Powers Authority Lo Hunter Santa Clara County Cities Association Page Lo Santa Clara County Cities Association. Selection Committee Page Lo Santa Clara County Emergency Council Cappello Miller Santa Clara Valley Water District Commission Miller Hunter Valley Transportation Authority PAC Miller Page West Valley Flood Control & Watershed Advisory Committee Hunter Page West Valley Mayors and Managers Association Page Hunter West Valley Sanitation District Page Cappello West Valley Solid Waste Management Joint Powers Authority Miller Page * Both members attend Hakone Foundation Board meetings Liaison Assignments Council Member Alternate Historical Foundation Hunter Cappello Postal Service Liaison Miller N/A Saratoga Ministerial Association Miller Cappello SASCC Hunter Cappello Sister City Liaison Lo Cappello Ad Hoc /Committee Assignments Council Member 1 2nd Council Member City School Ad Hoc Page Miller Council Finance Committee Miller Cappello Highway 9 Ad Hoc Lo Cappello Let's Move City Ad Hoc Page Cappello TEA Ad Hoc Page Cappello Village Ad Hoc Hunter Lo Both members are required to attend Ad HocJCommittee meetings Removed Assignments Council Member 2 "d Council Member Carlson House Restoration Ad Hoc Lo Cappello Electric Vehicle Charging Station Ad Hoc Lo Cappello Mayor/Vice Mayor Oath of Office Ad Hoc Page Cappello Tree Ad Hoc Hunter Cappello 420 SARATOGA CITY COUNCIL COMMITTEE /AGENCY INFORMATION SHEET COMMITTEE /AGENCY DESCRIPTION Association of Bay Area Government ABAG is the Regional Planning Agency for the nine County Bay Areas. Executive Board meetings are (ABAG) held quarterly, however a representative appointed by the Santa Clara Cities Association represents Saratoga along with other cities in Santa Clara County. The annual General Assembly is held in Oakland in the spring (and occasionally also in the fall), date and time to be announced. Cities Association of Santa Clara Occasionally, the Cities Association will convene as the City Selection Committee to fulfill the purposes County - City Selection Committee set forth in Government Code sections 50270 - 50279.4. The membership of the City Selection Committee consists of the Mayor or Mayor's designee of each city in the county. The Committee performs certain statutory obligations relating to the appointment of city representatives to various county and regional bodies, such as LAFCO, the Air District Board, etc. (The Executive Board is not a position that Council appoints a representative to; but rather one that council members have the opportunity to be elected to). The Cities Selection Committee meets at 6:45 p.m. prior to the Board of Director's Meeting, as needed. Cities Association of Santa Clara The Cities Association serves as a forum for the 15 cities within Santa Clara County to discuss issues of County Board of Directors mutual concern. It is staffed by Raania Mohsen, whose title is Executive Director. Each city is represented at meetings of the Cities Association by one Council Member. Meetings are held on the second Thursday of every month at 7 :00 p.m. at Sunnyvale City Hall at 456 West Olive Avenue in Sunnyvale. Hakone Foundation Board According to the Lease Agreement between the City of Saratoga and the Hakone Foundation that was signed on October 18, 2000 — Section 23.2: The Landlord shall be entitled to one seat on the Executive Committee of the Hakone Foundation. Such seat shall at the sole discretion of the Landlord be occupied by the Mayor of the City of Saratoga or a Council member selected by the Mayor. Section 23.3: Throughout the term of this Lease the Tenant's Board of Trustees shall include two members of the City Council of the City of Saratoga appointed by the City Council. The Landlord shall submit the names of the two City Council Members to the Tenant at the address to which notices to Tenant are given. The two Council Members shall have the same rights and privileges as all other members of the Board of Trustees. The Board meets quarterly at 12:00 p.m. on the third Wednesday of February, May, September, and upon special notice, on the third Friday of December at the Cultural Exchange Center in the gardens. The meeting dates in 2013 are February 21, May 17, and September 19. EAVE KSAR Community Access CATV One member of the City Council, along with the City Manager, represents the City on the Community Foundation Board Access Television Board. Other Board members include representatives from the West Valley- Mission College District Board, one staff member from West Valley College and three public members who must be Saratoga residents and who are selected jointly by the four City and College Board members. The CATV Board established policies and priorities for the management and operation of the local community access television station, which are then implemented by the Community Access Coordinator. KSAR is a 501c3 Board. Currently, the Board meets on the second Tuesday of every month at 12:00 p.m. in the Warner Hutton House at City Hall. The EPC is comprised of City and County representatives who review and prioritize emergency planning Santa Clara County Emergency Council (EPC) efforts at the countywide level. The EPC meets quarterly (February, May, August, and November) on the first Thursday of the month 12 noon to 1:30 p.m. in the Auditorium at the Sheriff's Office, located at 55 West Younger Avenue in San Jose. The meeting dates in 2013 are February 7, May 2, August 1, and November 7. Santa Clara County Housing and The HCD Council Committee is comprised of local elected officials who review and recommend policies Community Development (HCD) and priorities concerning the County's Housing & Community Development, and Community Council Committee Development Block Grant Programs (CDGB) to the County Board of Supervisors. The Committee meets three times during the Fiscal Year at 2310 North First Street, San Jose. Santa Clara County Library District A City Council Member from each city within the Santa Clara County Library District is selected to serve Joint Powers Authority Board on the Library JPA Board. The Library JPA is the policy making and governing body of the County's library system, of which Saratoga Community Library is part of. The Library JPA meets four times a year in January, April, June, and October on the fourth Thursday at 1:30 pm. at the Santa Clara County Library Administrative Offices, located at 14600 Winchester Boulevard in Los Gatos. In June, the meeting is held the first Thursday. Santa Clara Valley Flood Control & The Water District provides flood control activities throughout the county via five flood control zones, Watershed Advisory Committee which fund these activities through benefit - assessments levied against properties within each zone. The City of Saratoga is part of the Guadalupe /West Valley Flood Protection and Watershed Advisory Committee. The Committee is comprised of elected and appointed representatives of the cities within the zone. The purpose of the advisory committee is to formulate recommendations on flood control efforts within the zone to the Water District's Board of Directors. The North - Central FCZ Advisory Committee generally meets four times per year in February, May, September, and November on Wednesdays at 9:30 a.m. at the District Headquarters located at 5700 Almaden Expressway in San Jose. Meeting dates in 2013 are February 13, 2013, May 8, 2013, September 5, 2013, and November 13, 2013. Santa Clara Valley Water District The Water District's Water Commission advises the Water District Board on water supply issues in EA VA Commission Santa Clara County. The Commission is mostly made up of elected official who represent the cities within the county, although staff members appointed by their City Councils represent some cities. The Water Commission meets on Wednesday mornings at 12:00 p.m. - 2:00 p.m., in January, April, July, and October at the District Headquarters located at 5700 Almaden Expressway in San Jose. Meeting dates in 2013 are January 23, 2013, April 10, 2013, July 24, 2013, and October 23, 2013. Saratoga Area Senior Coordinating One member of the City Council serves as liaison to the SASCC Board to maintain open communications Council Liaison between the City and SASCC. The Board meets on the fourth Tuesday every of month at 9:30 a.m. at City Hall in the Magnolia Room. Saratoga Chamber of Commerce Both the Mayor and City Manager serve as ex- officio members of the Chamber of Commerce Board. Meetings will be held on the second Thursday of every month at 6:00 p.m. at the Chamber of Commerce Office. Saratoga Historical Foundation Officers and Board members meet 10 months out of the year (excluding December and August) on the third Thursday of the month from 3:00 p.m. - 5:00 p.m. in the Historical Museum. Saratoga Ministerial Association The Saratoga Ministerial Association is comprised of representatives from communities of faith located within the city of Saratoga. The purpose of the group is to build community and support city residents through cooperation and joint activities, including the annual Thanksgiving Day service, spring service projects (Saratoga Serves), summer block parties and other events. The group meets monthly on the fourth Wednesday at noon (except in July and August). The location rotates among the congregations. Saratoga Sister City Committee One member of the City Council serves as liaison to the Sister City Committee. The purpose of the Sister Liaison City Committee is to plan and carry out programs and activities, which strengthen Saratoga's relationship with its sister, city, Muko -Shi, in Japan. Meetings are held the first Tuesday of every month at 7:00 p.m. at the Joan Pisani Community Center. Valley Transportation Authority The VTA PAC is one of several standing advisory committees to the VTA Board of Directors. Composed Policy Advisory Committee of elected official representing each of the cities in the County, the PAC makes recommendations to the VTA Board on issues of transportation planning and programming. The VTA PAC meets on the second Thursday of every month at 4:00 p.m. at the VTA offices at 3331 North First Street in San Jose. The West Valley Mayors and Managers Association is a sub - regional grouping of the VTA governance West Valley Mayors and City Managers Association structure. It consists of the Mayors and City Mangers from the cities of Campbell, Cupertino, Monte Sereno, Saratoga and the Town of Los Gatos. It is charged with selecting the VTA Board member representing the above municipalities (for a two year term). Meetings are held the fourth Wednesday of the month at noon. Each city hosts the gathering for a year at a time, rotating in alphabetical order. Meetings in August and December are usually cancelled. West Valley Sanitation District The West Valley Sanitation District is governed by a five member board composed of one Cyr? councilmember from each of the four west valley cities and the District 4 Santa Clara County Supervisor. Board members are compensated $100 for each meeting attended. The Board is scheduled to meet on either the second or fourth Wednesday of every month at 6:00 p.m. at the District's Office located at 110 E. Sunnyoaks Avenue in Campbell. West Valley Solid Waste This WVSWMA consists of the west valley cities of Campbell, Los Gatos, Monte Sereno, and Saratoga. Management Authority The Authority was formed to coordinate efforts in carrying out solid waste collection and disposal activities, and in meeting the mandates of A13939, the States' Integrated Waste Management Act. The Authority is served by an Executive Director who is a private consultant under contract and who has considerable expertise in the field of solid waste. The Authority is responsible for establishing collection rates within each city and overseeing both landfill and hauler agreements. The Authority Board is composed of one councilmember from each of the four member agencies. Meetings are held on a quarterly basis (February, May, August, and November) at 5:00 p.m. on the first Thursday at Monte Sereno City Hall located at 18041 Saratoga Los Gatos Road in Monte Sereno. CITY COUNCIL AD HOC COMMITTEES & LIAISON ASSIGNMENTS Meetings are held on an as needed basis. - City /School Ad Hoc Committee - Council Finance Committee - Highway 9 Ad Hoc Committee - Let's Move City Ad Hoc Committee - Postal Liaison - TEA Ad Hoc Committee - Village Ad Hoc Committee 424 SARATOGA CITY COUNCIL AGENCY & AD HOC COMMITTEE MEETING SCHEDULE SUMMARY & ASSIGNMENTS AGENCY MEETING DATES COUNCIL MEMBER /ALTERNATE Association of Bay Area Government (ABAG) Meets 1— 2 times per year during General Lo Assembly in Spring and Fall in Oakland. Page Cities Association of Santa Clara County - City Selection Committee Meetings as needed at 6:45 p.m. on 2nd Page Thursday of the month at Sunnyvale City Hall Lo at 456 West Olive Avenue in Sunnyvale. Cities Association of Santa Clara County Board of Directors Meets 2nd Thursday of every month at 7:00 Page p.m. at Sunnyvale City Hall at 456 West Olive Lo Avenue in Sunnyvale. Hakone Foundation Board Meets quarterly on 3rd Wednesday at noon in Page the Cultural Exchange Center in the gardens. Hunter The meeting dates in 2013 are February 21, (both must attend) May 17, and September 19. Historical Foundation Meetings 3rd Tuesday of the month from 3:00 Hunter p.m. to 5:00 p.m., except for August and Cappello December, in the Saratoga History Museum. KSAR Community Access CATV Foundation Board Meets 2nd Tuesday of the month at 12:00 p.m. Hunter in the Warner Hutton House. Miller Santa Clara County Emergency Council (EPC) Meets quarterly on 1St Thursday of the month Cappello at noon in the Sheriff's Office, located at55 Miller West Younger Avenue, San Jose. Meetings are held in February, May, August, and November. Santa Clara County Housing and Community Development (HCD) Meets 3 times during the Fiscal Year at 2310 Cappello Council Committee North First Street, San Jose. Lo Santa Clara County Library System Joint Powers Authority Board Meets minimally 4 times a year in January, Lo April, June, and October on the 4th Thursday at Hunter 1:30 pm at the Santa Clara County Library Administrative Offices, located at 14600 Winchester Boulevard in Los Gatos. In June, the meeting is held the first Thursday. Santa Clara Valley Flood Control & Watershed Advisory Committee Meets 4 times per year in February, May, Hunter September, and November on Wednesdays at Page 9:30 a.m. at the District Headquarters located E, NO Me at 5700 Almaden Expressway in San Jose. Meeting dates in 2013 are February 13, 2013, May 8, 2013, September 5, 2013, and November 13, 2013. Santa Clara Valley Water District — Commission Meets on Wednesday mornings at 12:00 -2:00 Miller p.m., in January, April, July, and October at the Hunter District Headquarters located at 5700 Almaden Expressway in San Jose. Meeting dates in 2013 are January 23, 2013, April 10, 2013, July 24, 2013, and October 23, 2013. Saratoga Area Senior Coordinating Council Liaison Meets on the 4th Tuesday of the month at 9:30 Hunter a.m. at City Hall in the Magnolia Room. Cappello Saratoga Chamber of Commerce Meets 2nd Thursday of the month at 6:00 p.m. Cappello Hunter Saratoga Ministerial Association Meets 4th Wednesday at noon every month, Miller except for July and August. The meeting Cappello location rotates among the congregations. Meets 1St Tuesday of the month at 7:00 p.m. Lo Saratoga Sister City Committee Liaison at the Joan Pisani the Community Center. Cappello Valley Transportation Authority Policy Advisory Committee Meetings on the 2 "d Thursday of every month Miller at 4:00 p.m. Page West Valley Mayors and City Managers Association (WVM &M) Meets 4th Wednesday of the month at noon Page (except December). The meeting location Hunter rotates among member cities. West Valley Sanitation District Meets either the 2 "d or 4th Wednesday ever Page month at 6:00 p.m. at the District's Office Cappello located at110 E Sunnyoaks Avenue in Campbell. West Valley Solid Waste Management Authority Meets quarterly, in February, May, August, Miller and November, at 5:00 p.m. on the 1s' Page Thursday at Monte Sereno City Hall located at 18041 Saratoga Los Gatos Road in Monte Sereno. Me AD HOC AND LIAISON ASSIGNMENTS Meetings are held as needed. AD HOC /COMMITTEE ASSIGNMENTS COUNCIL MEMBER 2ND COUNCIL MEMBER City School Ad Hoc Page Miller Council Finance Committee Miller Cappello Highway 9 Ad Hoc Lo Cappello Let's Move City Ad Hoc Page Cappello Postal Service Liaison Miller N/A TEA Ad Hoc Page Cappello Village Ad Hoc Hunter Lo E110%