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HomeMy WebLinkAbout01-25-2013 City Council Retreat Agenda Packet�f 5 AA� f� R �P AGENDA CITY COUNCIL RETREAT JANUARY 25, 2013 9:00 A.M. SARATOGA PROSPECT CENTER - GRACE BUILDING 19848 PROSPECT ROAD, SARATOGA CALL MEETING TO ORDER — 9:00 A.M. ROLL CALL REPORT OF CITY CLERK ON POSTING OF THE AGENDA (Pursuant to Government Code 54954.2, the agenda for this meeting was property posted on January 17, 2013.) 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 non 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. AGENDA TOPICS 1. 9:00 a.m. Finance Overview Light Breakfast & Coffee 10:30 a.m. BREAK 2. 10:45 a.m. Community Development Department Work Plan 12:00 p.m. LUNCH BREAK 3. 12:30 p.m. Process Options for Strategic Planning 1:30 p.m. BREAK Mary Furey James Lindsay Dave Anderson 4. 1:45 p.m. Dream Outside the Box: What Do We Want for Saratoga in n the Crystal Bothelio Future? 3:15 p.m. 5. 3:30 p.m. Retreat Wrap Up ADJOURNMENT Mayor Jill Hunter Dave Anderson 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, ifyou need assistance to participate in this meeting, please contact the City Clerk at (408) 868 -1269. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. X28 CFR 35.102- 35.104 ADA title III 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 January 17, 2013, at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and on the City's website at www. saratoga. ca. us Signed this 17th day of January 2013 at Saratoga, California. Crystal Bothelio City Clerk ;� u� SAFigTO 4 SARATOGA CITY COUNCIL `'1 drorzt��. MEETING DATE: January 25, 2013 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Mary Furey DIRECTOR: Mary Furey SUBJECTS: 1. Mid -Year Budget Status 2. Five Year Forecast 3. Fund Balance Reserve Policies, and 4. Fund Balance Allocation/Capital Project Proposals Review Mid -Year Budget Status, Five Year Forecast, Fund Balance Reserve Policies, and Capital Project Reserve Fund Balance Allocation and Capital Project proposals, and provide direction to staff. REPORT SUMMARY: 1. The Mid -Year Budget Status will be presented to Council at the retreat through a PowerPoint presentation and additional documentation to allow for explanatory narratives, visuals, and discussion on the current status and outlook of revenues and expenditures. Proposed budget adjustments will be provided at the retreat. 2. The Five -Year forecast will be presented to review historical financial activity, current year activity and estimated outcomes, along with projections for the forecasted next five years. Revenue and expenditure assumptions will be provided and discussed, along with fund balance impacts. The Fiscal Management Policy revisions to be reviewed for approval at the Council Retreat are included as an attachment to this report to allow Council time to review the reserve descriptions prior to the meeting. The revisions are limited to the Fund Balance Reserves section of the policies. Prior to this revision, the policies were silent on all but the General Fund reserves, and the General Fund reserve descriptions were limited in definition and scope. The revisions include a more complete written description and purpose for each of the reserves, in all of the funds. A summary sheet accompanies the policies for a quick overview of the reserve revisions. 4. Fund Balance Allocation and Capital Project proposals will be presented at the retreat for Council consideration, along with the Capital & Efficiency Project Reserve funding availability. Council will be requested to provide direction to staff for FY 2013/14 Operating and Capital Budget preparations. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City's financial status, documents, and policies would not be reviewed, and Council would not provide direction. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: Implement Council direction for budget directives, financial adjustments, and policy changes. 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: A: Fund Balance Reserve Policy Revisions CITY OF SARATOGA FISCAL MANAGEMENT POLICIES FUND BALANCE RESERVE POLICY SUMMARY Fund Balance Reserve Policy Overview Overview section added to outline the overall purpose and intent of Fund Balance Reserves, how the reserves are classified per accounting standards, and the Council established allocation priorities for the fund balance reserves. General Fund — Reserve Policies General Fund Reserve's descriptions were revised to define each reserve's purpose, funding goal, reserve utilization and replenishment guidelines, and authority levels required for use. The "Operations Reserve" was renamed to "Working Capital Reserve', and the "Economic Uncertainty Reserve" was renamed to "Fiscal Stabilization Reserve" to more accurately reflect their purposes. The Uncollected Deposits Reserve will be closed at the FY 2012113 year -end, and is to be eliminated from the Fund Balance Reserve Policies. With the revisions, the General Fund reserve will include: Working Capital Reserve (previously known as Operations Reserve) Fiscal Stabilization Reserve (previously known as Economic Uncertainty Reserve) Carryforward Reserve Hillside Stability Reserve Future Capital Improvements & Efficiency Projects Reserve Environmental Services Reserves Development Services Reserves Other Unassigned Reserve Proposed General Fund - Fund Balance Reserve Policies The following new reserves are recommended to be established in the Fund Balance Policy, and funded if /as approved by Council. The general intent of these General Fund Reserves is to accumulate funding for known unfunded future costs or to accumulate Council's discretionary funds over fiscal years. Compensated Absences Reserve Council Discretionary Reserve Facility Replacement Reserve Special Revenue Fund Reserves Special Revenue Reserve descriptions were added to define the purpose of the Landscape & Lighting Fund reserves. Currently, this is only type of Special Revenue Fund in the City's Financial System. Debt Service Fund Reserves The Library General Obligation (GO) Bond Debt Fund Reserve was added to define the purpose and funding levels of the City's debt fund. Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES Capital Improvement Funds Capital Fund Reserves descriptions were added to identify the funds within the Capital Program, and that the fund balances are established solely to hold the program's project funds. The four Capital Programs include: Street Improvement Funds Park & Trail Improvement Funds Facility Improvement Funds Administrative Improvement Funds Internal Service Fund Reserves Internal Service Fund Reserve descriptions were added to identify the reserve purposes, funding of the reserve, authority levels, and utilization and replenishment guidelines. Each Internal Service Fund has very specific purposes with funding levels established to support cash flow needs and minimize interfund loans. Reserves are established for each of the following Internal Service Funds: Liability /Risk Management Reserves Workers Compensation Fund Office Support Fund Information Technology Services Fund Vehicle & Equipment Maintenance Fund Building Maintenance Fund Vehicle & Equipment Replacement Fund Office Technology Equipment Replacement Fund Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES FUND BALANCE RESERVE POLICY OVERVIEW Principles As a general philosophy to practice fiscal responsibility, the City of Saratoga attains conservative and cautious financial management through responsible, sustainable, and enforceable fiscal policies and internal controls to ensure prudent and efficient use of resources. The City's budget practices utilize long -range planning as a decision making tool, and annually adopts a structurally balanced fiscal plan that retains the City's fiscal health, preserves essential services, and supports short and long -term goals in a financially judicious manner. Budgeted revenues are conservatively stated and budgeted expenditures are comprehensive, allowing for the annual operational and capital improvement goals to be completed. With effectively managed revenue streams and efficient use of resources, fiscal year -end operational budget surpluses are available to fund future capital improvement projects and contribute to the City's fiscally responsible reserve accounts. The City's policy is to fund the Operating Budget with current funding, and to fund the Capital Budget with surplus and dedicated capital funding resources. The City does not incur debt for operations or capital improvements except under extraordinary circumstances and with citizen support. Under these circumstances the City will seek voter approval for General Obligation (GO) Bond Debt for major infrastructure rehabilitation. Additionally, the City practices conservative and cautious investment practices through limiting its investments to the State's Local Agency Investment Fund (LAIF). LAIF's extensive professional investment staff and conservative investment practices ensure prudent financial management of the City's fiscal reserves. Prudent financial management dictates that the City reserves a portion of its funds for future use to: maintain fiscal stability; ensure the continued orderly operation of government and provision of services to residents; and to mitigate current and future risks. As a general budget precept, the City Council decides when and whether to appropriate available funds to and from a reserve account. Use of reserve funds are not authorized without either specific direction in the annual budget or by a separate City Council action unless specifically noted in policy. Responsible fiscal stewardship also requires adequate reserve be maintained for all known liabilities and established City Council and community directed initiatives. In the following Fund Balance /Reserve Policy overviews, the descriptions are to include identification of the fund type and classification, the purpose of the reserve, minimum and maximum funding goals (from a long -term perspective) if appropriate, guidelines on utilization of the reserve and by what authority, and how the reserve is funded on an ongoing basis, or after utilization. Fund Balance and Net Position For Governmental Fund types, a fund's equity is the "fund balance ", for which the Governmental Accounting Standards Board ( "GASB ") Statement No. 54 defines five specific classifications of fund balance. Governmental Funds include the General Fund, Special Revenue Funds, Capital Project Funds, and Debt Service Funds). The five fund balance classifications are intended to identify the extent to which a specific fund balance reserve is available for appropriation and therefore spendable, or if the reserve is constrained by special restrictions, if any. Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES Equity classifications for non - governmental funds are "Net Position" which is defined as Restricted or Unrestricted Net Position. A third component of a non - governmental fund's equity is "Net Investment in Capital Assets" however as this refers to a non - monetary portion of equity, it is not discussed in this policy section. Non - governmental fund types include Proprietary Funds (Enterprise and Internal Service Funds) and Fiduciary Funds (Trust Funds). Currently, the City's non - governmental fund types are limited to Internal Service Funds. Governmental Fund Type Reserve Classifications The Governmental Reserve classifications are defined as follows, including the applicable reserves that fall into the classification: Non - Spendable Fund Balance Represents resources that are inherently non - spendable from the vantage point of the current period. The City does not presently hold Non - Spendable Reserve funds Restricted Fund Balance Represents fund balance that is subject to external enforceable legal restrictions. The City maintains the following restricted fund balances under this designation: Environmental Service Fund Balance — in the General Fund Fund Balance — in the Special Assessment Funds Fund Balance — in the Debt Service Fund Committed Fund Balance Represents fund balance constrained by limitations the government imposes upon itself at its highest level of decision making and remains binding unless removed in the same manner. The City maintains the following fund balances under this designation: Hillside Stability Reserve — in the General Fund CIP Fund(s) Project Reserve — in the Capital Improvement Program Funds Assigned Fund Balance Represents fund balance identified by Council for an intended use; however as no legal obligations exist, the funds may be re- designated and utilized for another purpose if Council chooses. The City maintains the following General Fund reserves under this designation: Future Capital Improvement & Efficiency Project Reserve — in the General Fund Carryforward Reserve — in the General Fund Unassigned Fund Balance 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. Only General Fund reserves can be designated under the "Unassigned" fund balance classification. Other funds are structured for specific purposes and their fund balances are therefore considered "assigned" for that purpose. Working Capital Reserve — in the General Fund Fiscal Stabilization Reserve - in the General Fund Development Services Reserve — in the General Fund Uncollected Deposits Reserve — in the General Fund Other Unassigned Fund Balance Reserve — in the General Fund Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES Unassigned Fund Balance Ratio The General Fund Unassigned Reserve (collective total) is to be maintained at a minimum of 20% of General Fund appropriations. General Fund Year -End Allocations After the City's financial records are finalized and audited, with legal obligations and liability reserves funded, revenues in excess of expenditures then close out to the Other Unassigned Fund Balance Reserve. From the Other Unassigned Fund Balance, funding in excess of $500,000 will be distributed in the following order: 1. Working Capital Reserve interest allocation. 2. Repayment of Fund Balance Reserve loan back to established level (e.g. borrowing from the Fiscal Stabilization or Hillside Stability Reserves). 3. Annual contribution of $100,000 to Hillside Stability Reserve, until reserve balance reaches $1,000,000. 4. Remaining funds are allocated to the Future Capital Improvement and Cost Efficiency Projects Reserve. GENERAL FUND — FUND BALANCE RESERVE POLICIES Working Capital Reserve In accordance with the City's cautious and conservative fiscal philosophy, the City's general prevailing financial policy holds that the City should fund daily operations with current resources in order to avoid use of short -term Tax Revenue Anticipation Notes (TRANS). To support this policy a Working Capital Reserve is established to meet cash flow requirements and prevent short -term borrowing, which in turn ensures the continuance of services to the public while also maintaining the City's credit worthiness. To provide adequate working capital, the City shall maintain a minimum reserve of 60 days of the following year's General Fund budget expenditures and up to a maximum reserve amount equal to 90 days of the following year's General Fund budget expenditures. This reserve falls under the Unassigned Fund Balance classification. A Working Capital Reserve of $2,000,000 was established in April 1994. Effective June 30, 2000, interest earnings accrue to the reserve at the end of each fiscal year based on the annual LAIF rate, with the intention to increase the reserve balance amount in proportion to Operating Budget increases. Fiscal Stabilization Reserve Under the Unassigned Fund Balance classification, a Fiscal Stabilization Reserve of $1,500,000 is established to provide temporary financing for budget stabilization caused by fiscal downturns, unanticipated extraordinary expenditures related to a natural disaster or calamity, or from an unexpected liability created by Federal or State legislative action. Fiscal stabilization needs may occur from revenue declines (over one or more years) of more than 5% of either property tax, the combined total of other taxes, or General Fund revenues in total, or from unanticipated extraordinary operational increases of more than 5% such as from a natural disaster or Federal or State legislative action. Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES Council may utilize funding at budget adoption, by adoption of a budget adjustment resolution during the course of the year, or after a Federal, State, or locally declared emergency. In the event a locally declared emergency takes place, the City Manager has the authority to spend funds until such time as the City Council takes action. Reserve appropriations are to be replenished from year -end net operations, as available, on a priority basis. Carryforward Reserve Under the Assigned Fund Balance classification, the Reserve for Carryforwards represents funding held at the end of each fiscal year for specific unexpended operating budget liabilities to be paid in the following fiscal year. The reserve is reconciled at the end of each year to both release prior year carryforward funding and reserve current year carryforward funding into the following budget year. Staff determines the year -end reserve amount after all fiscal year payments are finalized; the reserve amount is conceptually appropriated by Council each year in the budget adoption resolution. Hillside Stability Reserve Under the Committed Fund Balance classification, a Hillside Stability Reserve of $1,000,000 is established for unanticipated or unforeseen emergency or extraordinary costs related to hillside degradation, inclusive of slide prevention and mitigation, slide repair, and associated drainage and roadwork. The reserve is to be increased by $100,000 each fiscal year from General Fund year -end net operations until a $1,000,000 reserve cap is reached. Use of the reserve requires that an analysis be prepared and presented to Council for approval, or in the event of a landslide requiring immediate emergency work the Public Works Director may direct use of up to 10% of the reserve to make repairs and mitigate further damage until Council takes action. Reserve funding is to be used for emergency work which exceeds emergency operational funding provided for in the Operations Budget. Upon use, refunding of the reserve shall again resume at $100,000 each fiscal year. Future Capital Improvements & Efficiency Projects Reserve Under the Assigned Fund Balance classification, the Reserve for Future Capital Improvement & Efficiency Projects shall be maintained to fund as yet directed but uncommitted to specific capital and efficiency improvement projects. Funding is derived from General Fund accumulated net operations (if available) and is therefore considered a "one -time funding source ". Funds are held in this reserve until Council reviews funding requests and approves a use or transfer to another fund. Use of the reserve funding is at the Council's discretion, but typically occurs as part of the annual budget adoption after Council conducts a comprehensive review of capital and efficiency improvement needs. Reserve replenishment is dependent upon net operations funding in subsequent fiscal years. Environmental Services Reserve Under the Restricted Fund Balance classification, the Environmental Services Reserve represents revenues collected under a prior funding structure for environmental purposes, and is therefore restricted for use in funding environmental program costs such as street sweeping and storm drain cleaning services. Per policy, the Environmental Service Reserve is being utilized through annual budget appropriations of $50,000. The Environmental Services Reserve originated from a one -time funding structural change and therefore will not be replenished when depleted. Fund Balance Reserve Policies • CITY OF SARATOGA FISCAL MANAGEMENT POLICIES Development Services Reserve Under the Unassigned Fund Balance classification, the Development Services Reserve provides fiscal stability for the Community Development Department's planning and building programs. Development projects are often multi -year activities in which revenues may be collected in one year, while project expenditures may extend over several years. This reserve represents accumulated planning and building funds from years when revenues exceeded expenditures. The reserve is subsequently utilized to offset excess planning and building program expenditures through annual budget appropriations in the years where revenues are not sufficient, thereby acting as an overall funding stabilizer for multi -year development activities. Use of reserve funding is restricted to 1/3 or the reserve balance in any given fiscal year, with Council approval. Budgeted use of the Development Reserve is to be rescinded if and to the point where development revenues are sufficient to cover General Fund net operations at year -end. Funds are added to the reserve in years where Community Development Department revenues exceed Community Development Department expenditures. Other Unassigned Reserve The Other Unassigned Reserve represents accumulated net operations which are not allocated to other fund balance reserves, and by definition fall into the Unassigned Fund Balance classification. In the General Fund, approximately $500,000 of accumulated net operations is to remain in the Other Unassigned Fund Balance Reserve at year end to provide a buffer for unanticipated operational shortfalls and unforeseen needs. Other fund's accumulated net operations are typically accounted for in a general use fund balance reserve as the funds are structured for specific purposes, whereas the General Fund is used for multiple operational purposes thereby requiring a distinction of purpose for each reserve. Council may utilize funding at budget adoption or by adoption of a budget adjustment resolution during the course of the year. The reserve is replenished from year -end net operations, as available. Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES GENERAL FUND — PROPOSED FUND BALANCE RESERVE POLICIES Compensated Absences Reserve Under the Assigned Fund Balance classification, the Compensated Absences Reserve is established to smooth expenditure fluctuations resulting from the payout of accrued leave to employees at service separation and distribution payouts. Initial reserve funding is to be established at $200,000, with a targeted goal of one -third of the compensated absences liability established at year -end. Reserve funding in excess of one -third of the liability is to be returned to the General Fund Other Unassigned Reserve. Use of the reserve occurs when total annual compensated absences payouts exceed budgeted salary funds. Large payouts decrease the compensated absences liability at year -end, thereby supporting the practice of utilizing the reserve as needed. The reserve may be replenished over a three year period. Year -end reconciling allocations to and from the reserve are approved though Council's budget resolution adoption each fiscal year; the reserve and liability amounts are determined as part of the year -end close process. Council Discretionary Reserve Under the Unassigned Fund Balance classification, the Council Discretionary Reserve represents unspent funds from the Council's annual appropriation. The reserve provides a mechanism to roll forward remaining Council Discretionary Funds as reserve funds are immediately re- appropriated into the following fiscal year. This allows Council the flexibility to take advantage of unforeseen opportunities or needs without the restriction of fiscal year boundaries. Use of the reserve funding requires Council approval. The reserve exists at year -end only when there are remaining unspent Council Discretionary funds at the end of the fiscal year. Facility Replacement Reserve The Facility Replacement Reserve is established to accrue funding for major rehabilitation or replacement of City buildings in order to finance the construction of critical City facilities. The eligible uses of this reserve include the funding of public facility improvements or the servicing of related debt. Reserve funds are held in the Capital Facility Fund. Annual contribution, goal amount, and utilization to be determined by Council Need to define: Purpose Funding Goal Utilization Authority Level Replenishment Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES SPECIAL REVENUE FUND — FUND BALANCE RESERVE PPOLICIES Landscape & Lighting Assessment District Funds Assessment District Funds are Special Revenue Funds, which is a type of governmental fund. As a governmental fund, the Landscape and Lighting Assessment District Funds comply with GASB 54 fund balance classifications, and by nature of the fund's purpose, fund balance reserves are classified as restricted reserves. Special Revenue Funds account for and report the proceeds of specific revenue sources that are restricted or committed to specified purposes (other than for debt service or capital projects.) A Landscape & Lighting Fund is established to account for each individual assessment district; thereby each fund has its own fund balance reserve. The minimum fund balance reserve should be sufficient to provide working capital to cover operational expenses through bond debt receipts in December, which is equitable to approximately one -half of a district's annual expenditure budget. Some districts may include capital improvement projects in addition to ongoing regular maintenance resulting in fund balance increasing over the years to accumulate sufficient resources for the improvement projects. As each district's situation is different, a district's maximum fund balance shall be determined by the Public Works Director. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund's net operations in subsequent years. DEBT SERVICE FUND — FUND BALANCE RESERVE POLICIES Library General Obligation (GO) Bond Debt Fund The Library General Obligation (GO) Bond Debt Fund is a Debt Service Fund established to account for the financial resources accumulated for principal, interest, and cost of issuance expenditures associated with the Library Bond Debt. As Debt Service Funds are a governmental fund type, the fund reserves fall under the GASB 54 fund balance classifications. Debt Service Fund reserves are classified as Restricted as it can be spent only for specific purposes as stipulated by the bond covenants. The Library GO Bond Debt Fund was established to ensure funding is available for the GO Bond debt service requirements. At a minimum, the year -end fund balance reserve shall be sufficient to provide working capital to cover the semi - annual principal and interest debt payment due on August I't as GO Bond tax receipts are received after the I't debt payment is due. The reserve balance should also include sufficient funding to compensate for possible tax fluctuations as bond assessments are based as a percentage of property values not a flat amount. The fund's reserve maximum should be no more than one -year of budgeted annual expenditures. The reserve balance is increased (or reduced) through establishing assessment rates at more (or less) than the semi - annual payments and bond services require. Therefore, replenishment (or use) of the reserve is approved by Council through budget adoption and implemented through an increased (or reduced) assessment rate as a result of the fund's net operations. Fund Balance Reserve Policies • CITY OF SARATOGA FISCAL MANAGEMENT POLICIES CAPITAL IMPROVEMENT PLAN FUNDS - FUND BALANCE RESERVE POLICIES Overview Capital Improvement Funds account for the acquisition and maintenance of major capital assets other than those financed through special assessments or enterprise funds. Capital Project Funds are a type of governmental fund and therefore comply with GASB 54 fund balance classifications. As Council has directed the funding be spent for specific improvement projects, the Capital Project Fund Balance Reserves are classified as Committed Fund Balance. Budgeted capital improvement projects are funded for the scope of work approved by Council and remain assigned for that use until completed or reassigned by Council. Fund Balance amounts represent the total remaining funds of individual projects at year -end. As Fund Balance amounts are determined by the point of project completion at year -end they cannot be standardized for minimum or maximum amounts. Fund Balance is re- appropriated to the capital project in the following fiscal year for the work to be completed. Street Improvement Projects Funds Street Improvement Project Funds provide for a safe and functional roadway and pedestrian street system. Each Street Improvement Fund (CIP Street Fund, CIP Grant Fund, and Gas Tax Fund) has multiple projects which roll up into the overall fund balances, but remain designated for use by project. The CIP Street Fund receives annual funding from road impact fees, reimbursements and contributions, and transfers from other funds. The CIP Grant Fund receives federal, state, and local grants which vary in source and amount from year -to -year. Typically, CIP Grant Funds have a negative fund balance as project work is conducted beforehand and then reimbursed from expenditure invoices. The Gas Tax Fund represents annual Gas Tax and TCR allocations that are to be accounted for separately and may be audited by the State. Year end fund balance represents the remaining unexpended project funds (net of any negative CIP Grant Fund Balance) which are subsequently re- appropriated by Council into the following budget year through budget adoption. Park & Trail Improvement Project Funds Park & Trail Improvement Project Funds provide for capital improvements to the City's neighborhood and city parks and plaza, the sport fields, bike and pedestrian trails, and open space areas throughout the City. Each of the Park & Trail Improvement Funds (CIP Park & Trail Fund, CIP Tree Fund, and the CIP Park & Trail Grant Fund) have multiple projects which roll up into the overall fund balances, but remain designated for use by project. The CIP Park & Trail Fund receives annual funding from subventions, occasional Park -in -Lieu fees, reimbursements and contributions, and transfers in from other funds. The Tree Fund receives revenue from tree fines and transfers from other funds upon Council direction. The CIP Grant Fund receives federal, state, and local grants which vary in source and amount from year -to -year. Typically, CIP Grant Funds have a negative fund balance as project work is conducted beforehand and then reimbursed from expenditure invoices. Year end fund balance represents the remaining unexpended project funds (net of any negative CIP Grant Fund Balance) which are subsequently re- appropriated by Council into the following budget year through budget adoption. Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES Facility Improvement Funds Facility Improvement Project Funds provide for capital maintenance and improvements of the City - owned buildings and structures throughout the City. Each of the Facility Improvement Funds (CIP Facilities Fund and the Facility Grant Fund) have multiple projects which roll up into the overall fund balances, but remain designated for use by project. The CIP Facilities Fund receives annual funding from an annual General Fund transfer, from Theater Ticket Surcharge Fees, from reimbursements and contributions, and transfers from other funds. The Facility Grant Fund receives revenue from grants that varies in amount from year -to -year. Typically, CIP Grant Funds have a negative fund balance as project work is conducted beforehand and then reimbursed from expenditure invoices. Year end fund balance represents the remaining unexpended project funds (net of any negative CIP Grant Fund Balance) which are subsequently re- appropriated by Council into the following budget year through budget adoption. Administrative Improvement Funds Administrative Improvement Project Funds provide for major capital expenditures to improve or enhance administrative and operational systems, processes, or functions. Each of the Administrative Improvement Funds (CIP Administrative Improvement Fund and the Administrative Grant Fund) have multiple projects which roll up into the overall fund balances, but remain designated for use by individual project. The CIP Administrative Fund typically receives funding from a General Fund transfer as Administrative Grants are limited. Typically, CIP Grant Funds have a negative fund balance as project work is conducted beforehand and then reimbursed from expenditure invoices. Year end fund balance represents the remaining unexpended project funds (net of any negative CIP Grant Fund Balance) which are subsequently re- appropriated by Council into the following budget year through budget adoption. Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES INTERNAL SERVICE FUND — FUND BALANCE RESERVE POLICIES Overview Internal Service Funds are established to provide centralized cost centers for shared expenses and services in order to efficiently track costs and manage resources. Costs are allocated back to the operational programs based on usage to more accurately determine cost of services. The City's Internal Service Funds include the two Insurance funds: Risk Management and Workers Compensation, four Service /Support funds: Office Support, IT Services, Vehicle & Equipment Maintenance, and Building Maintenance Funds, and two Equipment Replacement funds: the Vehicle & Equipment Replacement Fund, and the Office Technology Equipment Replacement Fund. Appropriate levels of reserves are held in each of the Internal Service Funds to support cash flow needs and minimize interfund loans. As Internal Service Funds are a type of Proprietary Fund; GASB 54 fund balance classification (for Governmental Fund types) does not apply. Instead, Internal Service Fund's financial statement reports are presented similar to private- sector businesses and use "Restricted" and "Unrestricted Net Position" to define net operational balances (equity /fund balance reserves). Unrestricted Net Position allows reserve funding to be used (with Council approval) within the general scope of the fund's purpose. Restricted Net Position reserves are limited to a purpose narrower than the purpose of the fund. For example, grant funding limited to a specifically defined use, as in remaining funds from a Risk Management Training Grant within the Liability /Risk Management Fund must be used for qualified training purposes. Most Internal Service Funds reserves are held in the Unrestricted Net Position category. Liability /Risk Management Reserve Fund The Liability /Risk Management Fund's Unrestricted Net Position reserve provides funding for unanticipated legal claims and program expenses. For those claims covered under the insurance risk pool JPA, the City is self- insured for up to $25,000 per occurrence. Non - covered claims are paid fully by the City. The Liability /Risk Management program receives funding from: allocations charged to covered departments, from grant funding, and from claim reimbursements. At year end, unspent funding flows into Unrestricted Net Position or Restricted Net Position for grant funding. Requests for use of the reserve balance are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund's net operations in subsequent years. Workers Compensation Fund The Workers Compensation Fund's Unrestricted Net Position reserve provides funding for unanticipated legal claims and program expenses. The purpose of the Workers' Compensation program is to provide insurance benefit coverage for employee work - related illness and /or injuries through its membership in a shared risk pool. The risk pool provides coverage up to $250,000, and excess insurance provides coverage over this amount up to $10 million. The Workers Compensation program receives funding from allocations charged to covered departments, from grant funding, and from claim reimbursements. At year end, unspent funding flows Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES into Unrestricted Net Position, or Restricted Net Position for grant funding. Requests for use of the reserve balance are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund's net operations in subsequent years. Office Support Fund The Office Support program provides a centralized cost center for administrative office support expenses such as for photocopy machine leases, maintenance and repair services, postage, paper, and copier supplies. For efficiency, office support costs are managed collectively and charged back to departmental programs on a use -basis allocation. Accumulated net operations are held in the Office Support Fund for working capital cash flow and unanticipated office support maintenance expenses The reserve is funded from the allocations charged to covered departments. At year end, unspent funding flows into Unrestricted Net Position. Requests for use of excess reserve balance are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund's net operations in subsequent years. Information Technology Services Fund Information Technology Services provides for the delivery of technology based services throughout the City's operations, including maintenance of the City's information systems and infrastructure, program implementation, streaming video, internet, landline, and wireless communications systems, cloud based technology, and support of all existing information technology as well as new technology initiatives. For efficiency, information technology costs are managed collectively and charged back to departmental programs on a service -based allocation to fund the program. Funding for the program comes from these allocations charged to covered departments. At year end, unspent funding flows into Unrestricted Net Position. Accumulated net operations are held in the Information Technology Services Fund for working capital cash flow and unanticipated expenses and future technology service improvements. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund's net operations in subsequent years. Vehicle & Equipment Maintenance Fund The Vehicle & Equipment Maintenance program provides for the maintenance and servicing of the City's fleet and major equipment to ensure all vehicles and equipment are maintained in accordance with manufacturer's recommendations and safety requirements. Vehicle & equipment replacement costs are charged back to the departmental programs based on assigned usage to fund the program. Accumulated net operations are held in the Vehicle & Equipment Maintenance Fund for working capital cash flow, unanticipated expenses, and future equipment service needs. The reserve is funded from the allocations charged to covered departments. At year end, unspent funding flows into Unrestricted Net Position. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund's net operations in subsequent years. Building Maintenance Fund The Building Maintenance program provides for the custodial, maintenance, and non -major repairs and building improvement services for all facilities at the Civic Center, Prospect Center, and Museum Park. Additionally, the program supports the maintenance and repair needs for the tenants of City leased Fund Balance Reserve Policies CITY OF SARATOGA FISCAL MANAGEMENT POLICIES buildings as defined in the lease agreements. To fund the program, total costs are allocated back to departmental programs primarily based on building space usage. Accumulated net operations are held in the Building Maintenance Fund for future major maintenance needs and unanticipated expenses. Additional reserve funds may be accumulated for larger building maintenance projects. Funding for the reserve comes from the allocations charged to covered departments. At year end, unspent funding flows into Unrestricted Net Position. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund's net operations in subsequent years. Vehicle & Equipment Replacement Reserve The Vehicle and Equipment Replacement Fund Balance Reserve represents a savings account to accumulate funding over an asset's lifespan to provide for the replacement of the vehicle or equipment at the end of its useful life. Initial purchases are paid for through a department's operational budget. If the purchased item is for ongoing use, the Vehicle & Equipment Replacement program appropriates an annual allocation for the replacement of the vehicles and equipment based on the asset's cost and years of life. Final determination for replacement of the asset is determined through analysis of whether the cost of maintenance equals or exceeds the cost of replacing the asset. The reserve is funded from the allocations charged to covered departments and represents accumulated funding, less amounts expended for asset replacement. At year end, unspent funding flows into Unrestricted Net Position. The reserve shall be funded to provide replacement funding of vehicles and equipment in accordance with replacement schedules. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund's net operations in subsequent years. Office Technology Equipment Replacement Fund The Office Technology Equipment Replacement Fund provides for the replacement of office technology based equipment such as desktop computers and monitors, laptops and tablets, network infrastructure, and various other related equipment. Replacement costs are charged back to the departments based on assigned equipment costs. The Office Equipment Replacement Fund Balance Reserve accumulates funding over an asset's lifespan to provide for the replacement of the technology office equipment at the end of its useful life. Initial purchases are paid for through a department's operational budget. If the purchased item is for ongoing use, the Office Equipment Replacement program appropriates an annual allocation for the replacement of the equipment based on the assets cost and years of life. The reserve represents accumulated funding, less amounts expended for replacements. The reserve shall be funded to provide replacement funding in accordance with replacement schedules. Funding for the reserve comes from the allocations charged to covered departments. Requests for use of the reserve are approved by Council through budget adoption or by a Council approved budget adjustment resolution throughout the year. The reserve is replenished from the Fund's net operations in subsequent years. Fund Balance Reserve Policies Memorandum TO: Mayor Hunter & City Council Members FROM: James Lindsay, Community Development Director DATE: January 17, 2013 SUBJECT: Draft 2013 CDD Work Plan The draft 2013 Community Development Department Work Plan is attached and consists of three separate memos covering the following topics: • The proposed Planning Commission Work Plan • Request for direction on the sale of alcohol for off -site consumption as a permitted use. • The proposed miscellaneous Code updates for the year SARATOGA CITY COUNCIL c bs RETREAT 2013 WFOVL MEETING DATE: January 25, 2013 AGENDA ITEM: DEPARTMENT: Community Development CITY MANAGER: Dave Anderson PREPARED BY: James Lindsay DIRECTOR: James Lindsay SUBJECT: Proposed 2013 Planning Commission Work Plan RECOMMENDED ACTION: Review the proposed work plan and provide direction. REPORT SUMMARY: The Planning Commission has prioritized the following items they would like to complete in 2013. Annual General Plan Element Update — Noise Element (includes noise ordinance update) 1. Update the Residential Design Handbook 2. Review the building height limits in the C -V and C -N zoning districts 3. Consider new residential front yard landscape standards 4. Consider stronger residential green building standards DISCUSSION: 1. Residential Design Handbook Update The Residential Design Handbook (Attachment A) was adopted by the City Council in 1988 to illustrate the intent of the design review findings (Attachment B) used by staff and the Planning Commission when considering projects subject to the design review process. The majority of the design strategies illustrated in the Handbook are for hillside homes or new subdivisions which was appropriate for the type of residential development occurring in the 1980s and 90s. However, the nature of development has changed considerably over the past 25 years as the City has become built - out. New subdivisions are very rare and replacement homes in established R -1 neighborhoods now make up the majority of design review projects. The Planning Commission has identified the need to update the Residential Design Handbook with additional policies, techniques, and illustrations to better guide the design of replacement homes in established R -1 neighborhoods. Many of the existing polices related to hillside development are still relevant and could be contained in a separate section within an updated Handbook. 2. Commercial Height Limits (Outside the Village) The Commission is concerned about the inconsistency in different height limits for commercial buildings and for multi - family buildings located within the C -V and C -N zoning districts. The following table illustrates these different height limits. The Commission also compared these limits to the 26 -foot height limit for 2 -story homes in the R -1 zoning districts at a recent study session. 3. Residential Front Yard Landscaping Standards The Commission would like to consider establishing standards for front yard landscaping in R1 zoning districts. The Commission had used the old impervious coverage definition to help regulate front yard materials and the development standards for the R1 district do not include a requirement for front yard landscaping. Landscaping is required for projects which have gone through the design review process. However, a concern of the Commission is that after a project is complete the front yard landscaping can be reduced or significantly altered without any permits or standards. Some cities have instituted limits on the amount of paving that can occur in a front yard, other cities with landscaping ordinances have specific requirements for live plant material. 4. Residential Green Building Standards The Commission would like to review the pros and cons of requiring higher green building standards than currently required by the California Building Code (CBC) for new residential construction. The CALGreen Code contains a both mandatory and voluntary green building measures. A summary table of the two tiers has been provided as Attachment C. The 2014 CBC will be available for review in July 2013 at which time the Building Division will know what changes, if any, the Building Standards Commission made to the CALGreen Code. Cities are permitted to make local amendments to the CBC if certain findings are made and it has been determined that amendments are needed to address unique characteristics of an area such as climate, fire hazards and proximity to fault lines. ATTACHMENTS: A. Table of CALGreen Measures Commercial Building Multi-Family Building Zoning Districts Commercial Visitor C -V 20 ft. 30 ft. Neighborhood Commercial C -N 20 ft. 30 ft. C -N (Residential HD) 30 ft. 30 ft. Professional & Administrative Office P -A (reference only) 30 ft. N/A The Commission also compared these limits to the 26 -foot height limit for 2 -story homes in the R -1 zoning districts at a recent study session. 3. Residential Front Yard Landscaping Standards The Commission would like to consider establishing standards for front yard landscaping in R1 zoning districts. The Commission had used the old impervious coverage definition to help regulate front yard materials and the development standards for the R1 district do not include a requirement for front yard landscaping. Landscaping is required for projects which have gone through the design review process. However, a concern of the Commission is that after a project is complete the front yard landscaping can be reduced or significantly altered without any permits or standards. Some cities have instituted limits on the amount of paving that can occur in a front yard, other cities with landscaping ordinances have specific requirements for live plant material. 4. Residential Green Building Standards The Commission would like to review the pros and cons of requiring higher green building standards than currently required by the California Building Code (CBC) for new residential construction. The CALGreen Code contains a both mandatory and voluntary green building measures. A summary table of the two tiers has been provided as Attachment C. The 2014 CBC will be available for review in July 2013 at which time the Building Division will know what changes, if any, the Building Standards Commission made to the CALGreen Code. Cities are permitted to make local amendments to the CBC if certain findings are made and it has been determined that amendments are needed to address unique characteristics of an area such as climate, fire hazards and proximity to fault lines. ATTACHMENTS: A. Table of CALGreen Measures RESIDENTIAL GREEN BUILDING MEASURES FEATURE OR MEASURE Mandatory Elective Measures PLANNING AND DESIGN Site Selection A4.103.1 A site which complies with at least one of the following characteristics is selected: 1. An infill site is selected. 2. A greyfield site is selected. 3. An EPA recognized Brownfield site is selected. Site Pr A4.104.1 An individual with oversight responsibility for the project has participated in an educational program promoting environmentally friendly design or development and has provided training or instruction to appropriate entities. Deconstruction and Reuse of Existing Mater A4.105.2 Existing buildings are disassembled for reuse or recycling of building materials. The proposed structure utilizes at least one of the following materials which can be easily reused: 1. Light fixtures 2. Plumbing fixtures 3. Doors and trims 4. Masonry 5. Electrical devices 6. Appliances 7. Foundations or portions of foundations Site D 4.106.2 A plan is developed and implemented to manage storm water X drainage during construction. 4.106.3 Construction plans shall indicate how site grading or a drainage system will manage all surface water flows to keep water X from entering buildings. A4.106.1 Orient buildings to optimize the use of solar energy with the long side of the house oriented within 300 of south. A4.106.2.2 Soil disturbance and erosion are minimized by at least one of the following: 1. Natural drainage patterns are evaluated and erosion controls are implemented to minimize erosion during construction and after occupancy. 2. Site access is accomplished by minimizing the amount of cut and fill needed to install access roads and driveways. 3. Underground construction activities are coordinated to utilize the same trench minimize the amount of time the disturbed soil is exposed and the solid is replaced using accepted compaction methods. A4.106.2.3 Topsoil shall be protected or saved for reuse as specified in this section. Tier 1. Displaced topsoil shall be stockpiled for reuse in a designated area and covered or protected from erosion. Tier 2. The construction area shall be identified and delineated by fencing or flagging to limit construction activity to the construction area. A4.106.3 Postconstruction landscape designs accomplish one or more of the following: FEATURE OR MEASURE Mandatory Elective Measures 1. Areas disrupted during construction are restored to be consistent with native vegetation species and patterns. 2. Limit turf areas to greatest extent possible. a. Not more than 50 percent for Tier 1. b. Not more than 25 percent for Tier 2. 3. Utilize at least 75 percent native California or drought tolerant plant and tree species appropriate for the climate zone region. 4. Hydrozoning irrigation techniques are incorporated into the landscape design. A4.106.4 Permeable paving is utilized for the parking, walking or patio surfaces in compliance with the following: Tier 1. Not less than 20 percent of the total parking, walking or patio surfaces shall be permeable. Tier 2. Not less than 30 percent of the total parking, walking or patio surfaces shall be permeable. A4.106.5 Roofing materials shall have a minimum 3 -year aged solar reflectance and thermal emittance or a minimum Solar Reflectance Index (SRI) equal to or greater than the value specified in Tables A4.106.5 (1) and A4.106.5 (2). Tier1 roof covering shall meet or exceed the values contained in Table A4.106.5 (1). Tier 2 roof covering shall meet or exceed the values contained in Table A4.106.5 (2). A4.106.6 Electric vehicle charging. Provide capability for dedicated electrical vehicle supply equipment in single - family and multifamily structures. 4.201.1 Low -rise residential buildings shall meet or exceed the minimum standard design required by the California Energy X Standards. A4.203.1 Exceed the California Energy Code requirements, based on the 2008 Energy Efficiency Standards requirements by 15 percent. A4.203.1 Exceed the California Energy Code requirements, based on the 2008 Energy Efficiency Standards requirements by 30 percent. A4.205.1 Radiant roof barrier is installed in Climate Zones 2, 4 and 8 through 15. A4.205.2 Exterior shading at least 18 inches in depth is provided on south and west windows. A4.206.1 Third party blower door test is conducted and passed to verify building envelope tightness. FEATURE OR MEASURE Mandatory Elective Measures A4.207.1 Radiant, hydronic, ground source and other innovative space heating and cooling systems included in the proposed design shall be designed using generally accepted industry- approved guidelines and design criteria. A4.207.2 An HVAC system commissioning plan is developed and the following items, as appropriate, pertaining to the heating and cooling systems are inspected and certified by an independent third party agency: 1. Verify compliance with the manufacturer's recommended start -up procedures. 2. Verify refrigerant charge by super -heat other methods specified by the manufacturer. 3. Burner is set to fire at the nameplate input rating. 4. Temperature drop across the evaporator is within the manufacturer's recommended range. 5. Test and verify air flow to be within 10 percent of the initial design air flow. 6. Static pressure within the duct system is within the manufacturer's acceptable range. 7. Verify that the whole house and exhaust ventilation systems meet Title 24 requirements. 8. Verify that the recommended maintenance procedures and schedules are documented and provided to the home owner. A4.207.2.3 Results of the commissioning inspection shall be included in the Operation and Maintenance Manual required in Section 4.410.1. A4.207.4 Install gas -fired (natural or propane) space heating equipment with an Annual Fuel Utilization Ratio (AFUE) of .90 or higher. A4.207.5 If an electric heat pump must be used, select equipment with a Heating Seasonal Performance Factor (HSPF) of 8.0 or higher. A4.207.6 When climatic conditions necessitate the installation of cooling equipment with a Seasonal Energy Efficiency Ratio (SEER) higher than 13.0 and an Energy Efficiency Ratio (EER) of at least 11.5. A4.207.7 Install ductwork to comply with at least one of the following: 1. Install ducts within the conditioned envelope of the building. 2. Install ducts in an underfloor crawl space. 3. Use ducts with an R -6 insulation value or higher. 4. Install ductwork which is buried in the ceiling insulation. A4.207.8 Perform duct leakage testing to verify a total leakage rate of less than 6 percent of the total fan flow. A4.207.9 In cooling Climate Zones 2, 4 and 8 through 15 install a whole -house fan with insulated louvers or an insulated cover. A4.207.10 ENERGY STAR ceiling fans are installed in all bedrooms and living areas. A4.208.1 The Energy Factor (EF) for a gas -fired storage water heater is higher than .60. A4.208.2 The Energy Factor (EF) for a gas -fired tankless water heater FEATURE OR MEASURE Mandatory Elective Measures is .80 or higher. A4.208.3 Where the hot water source is more than 10 feet from a fixture, the potable water distribution system shall convey hot water using a method designed to minimize wait time for hot water to arrive at the fixture. A4.209.1 Building lighting consists of at least 90 percent ENERGY STAR qualified hard -wired fixtures. A4.210.1 Each appliance provided by the builder meets ENERGY STAR if an ENERGY STAR designation is applicable for that appliance. A4.211.1 Install a solar photovoltaic (PV) system in compliance with the California Energy Commission New Solar Homes Partnership (NSHP). " "' Install energy efficiency measures meeting either Tier I or Tier II below. Tier 1. Exceed the 2010 California Energy Code requirements by 15 percent. Tier2. Exceed the 2010 California Energy Code requirements by 30 percent. Solar water heating may be used to assist in meeting the energy efficiency requirements of either Tier 1 or Tier 11. 1. In addition, for either Tier I or II, each appliance provided by the builder must be ENERGY STAR if an ENERGY STAR designation is applicable for that appliance. 2. Tier II requires a 30 percent reduction in the building's space cooling (air conditioning) energy compared to the 2010 California Energy Code. 3. Information on NSHP incentives available through the California Energy Commission may be obtained at the "Go Solar California" website. A4.211.2 A solar water heating system is installed. A4.211.3 Space on the roof surface and penetrations through the roof surface are provided for future solar installation. A4.211.4 A minimum one -inch conduit is provided from the electrical service equipment for the future installation of a photovoltaic (PV) system. WATER EFFICIENCY AND CONSERVATION 4.303.1 Indoor water use shall be reduced by at least 20 percent using one of the following methods. X 1. Water saving fixtures or flow restrictors shall be used. 2. A 20 percent reduction in baseline water use shall be demonstrated. 4.303.2 When using the calculation method specified in Section 4.303.1, multiple showerheads controlled by a single valve shall not X exceed maximum flow rates. 4.303.3 Plumbing fixtures (water closets and urinals) and fittings FEATURE OR MEASURE Mandatory Elective Measures (faucets and showerheads) shall comply with specified performance X requirements. A4.303.1 Kitchen faucets and dishwashers shall comply with this section. Tier 1. The maximum flow rate at a kitchen sink faucet shall not be greater than 1.5 gallons per minute at 60 psi. Tier 2. In addition to the kitchen faucet requirements for Tier 1, dishwasher in Tier 2 buildings shall be ENERGY STAR qualified and not sure more than 5.8 gallons of water per cycle. A4.303.2 Nonwater supplied urinals or waterless toilets are installed. Outdoor Water Use 4.304.1 Automatic irrigation systems controllers installed at the time of final inspection shall be weathered or soil moisture - based. X A4.304.1 Install a low -water consumption irrigation system which minimizes the use of spray type of heads. A4.304.2 A rainwater capture, storage and re -use system is designed and installed. A4.304.3 A water budget shall be developed for landscape irrigation. A4.304.4 Provide water efficient landscape irrigation design that reduces the use of portable water. Tier 1. Does not exceed 65 percent of ETo times the landscape area. Tier 2. Does not exceed 60 percent of ETo times the landscape area. A4.305.5 A landscape design is installed which does not utilize potable water. WATER REUSE SYSTEMS A4.305.1 Piping is installed to permit future use of a graywater irrigation system served y the clothes washer or other fixtures. A4.305.2 Recycled water piping is installed. A4.305.3 Recycled water is used for landscape irrigation. MATERIAL CONSERVATION AND RESOURCE EFFICIENCY A4.403.1 A Frost - Protected Shallow Foundation (FPSF) is designed and constructed. A4.403.2 Cement use in foundation mix design is reduced. Tier 1. Not less than a 20 percent reduction in cement use. Tier 2. Not less than a 25 percent reduction in cement use. Efficient Framing Techniques A4.404.1 Beams and headers and trimmers are the minimum size to adequately support the load. A4.404.2 Building dimensions and layouts are designed to minimize waste. A4.404.3 Use premanufactured building systems to eliminate solid sawn lumber whenever possible. A4.404.4 Material list are included in the plans which specify material quantity and provide direction for on -site cuts. Material Sources A4.405.1 One or more of the following building materials, that do not require additional resources for finishing are used: FEATURE OR MEASURE Mandatory Elective Measures 1. Exterior trim not requiring paint or stain 2. Windows not requiring paint or stain 3. Siding or exterior wall coverings which do not require paint or stain A4.405.2 Floors that do not require additional coverings are used including but not limited to stained, natural or stamped concrete floors. A4.405.3 Postconsumer or preconsumer recycled content value (RCV) materials are used on the project. Tier 1. Not less than a 10 percent recycled content value. Tier 2. Not less than a 15 percent recycled content value. A4.405.4 Renewable source building products are used. 4.406.1 Annular spaces around pipes, electric cables, conduits or other openings in plates at exterior walls shall be protected against X the passage of rodents by closing such openings with cement mortar, concrete masonry or similar method acceptable to the enforcing agency. A4.407.1 Install foundation and landscape drains. A4.407.2 Install gutter and downspout systems to route water at least 5 feet away from the foundation or connect to landscape drains which discharge to a dry well, sump, bioswale, rainwater capture system or other approved on -site location. A4.407.3 Provide flashing details on the building plans and comply with accepted industry standards or manufacturer's instructions. A4.407.4 Protect building materials delivered to the construction site from rain and other sources of moisture. A4.407.5 In Climate Zone 16 an ice /water barrier is installed at roof valleys, eaves and wall to roof intersections. A4.407.6 Exterior doors to the dwelling are protected to prevent water intrusion. A4.407.7 A permanent overhang or awning at least 2 feet in depth is provided. 4.408.1 Recycle and /or salvage for reuse a minimum of 50 percent of X the nonhazardous construction and demolition waste in accordance with one of the following: 1. Comply with a more stringent local construction and demolition waste management ordinance; or 2. A construction waste management plan per Section 4.408.2; or 3. A waste management company per Section 4.408.3; or 4. The waste stream reduction alternative per Section 4.408.4. A4.408.1 Construction waste generated at the site is diverted to X recycle or salvage in compliance with one of the following: 1. Tier 1 at least a 65 percent reduction 2. Tier 2 at least a 75 percent reduction Exception: Equivalent waste reduction methods are developed by working with local agencies. FEATURE OR MEASURE Mandatory Elective Measures Building Maintenance and Operation 4.410.1 An operation and maintenance manual shall be provided to X the building occupant or owner. 4.503.1 Any installed gas fireplace shall be a direct -vent sealed - combustion type. Any installed woodstove or pellet stove shall X comply with US EPA Phase II emission limits where applicable. Woodstoves, pellet stoves and fireplaces shall also comply with applicable local ordinances. 4.504.1 Duct openings and other related air distribution component X openings shall be covered during construction. 4.504.2.1 Adhesives, sealants and caulks shall be compliant with VOC X and other toxic compound limits. 4.504.2.2 Paints, stains and other coatings shall be compliant with X VOC limits. 4.504.2.3 Aerosol paints and coatings shall be compliant with product X weighted MIR limits for ROC and other toxic compounds. 4.504.2.4 Documentation shall be provided to verify that compliant X VOC limit finish materials have been used. 4.504.3 Carpet and carpet systems shall be compliant with VOC limits. X 4.504.4 50 percent of floor area receiving resilient flooring shall comply with the VOC- emission limits defined in the Collaborative for X High Performance Schools (CHPS) High Performance Products Database or be certified under the Resilient Floor Covering Institute (RFCI) FloorScore program; or meet California Dept. of Public Health, "Standard Method for the Testing and Evaluation of Volatile Organic Chemical Emissions from Indoor Sources Using Environmental Chambers ", Version 1.1, February 2010 (also known as Specification 01350.) 4.504.5 Particleboard, medium density fiberboard (MDF) and X hardwood plywood used in interior finish systems shall comply with low formaldehyde emission standards. A4.504.1 Meet the formaldehyde limits contained in Table 4.504.5 before the mandatory compliance date, or use composite wood products made with either California Air Resources Board approved no -added formaldehyde (NAF) resins or ultra -low emitting formaldehyde (ULEF) resins. A4.504.2 Install VOC compliant resilient flooring systems. Tier 1. At least 80 percent of the resilient flooring installed shall comply. Tier2. At least 90 percent of the resilient flooring installed shall comply. A4.504.3 Thermal insulation installed in the building shall meet the following requirements: Tier 1. Install thermal insulation in compliance with the VOC — emission limits defined in Collaborative for High Performance Schools (CHIPS) Low - emitting Materials List. Tier 2. Install insulation which contains No -Added Formaldehyde (NAF) and is in compliance with the VOC- emission limits defined in Collaborative for High Performance Schools (CHIPS) Low - emitting Materials List. FEATURE OR MEASURE Mandatory Elective Measures Interior Moisture Control 4.505.2 Vapor retarder and capillary break is installed at slab on grade X foundations. 4.505.3 Moisture content of building materials used in wall and floor X framing is checked before enclosure. Indoor Air Quality and Exhaust 4.506.1 Exhaust fans which terminate outside the building are X provided in every bathroom. A4.506.1 Higher than MERV 6 filters are installed on central air or ventilation systems. A4.506.2 Direct vent appliances are used or isolated from the conditioned space. Environmental Comfort 4.507.1 Whole house exhaust fans shall have insulated louvers or X covers which close when the fan is off. Covers or louvers shall have a minimum insulation value of R -4.2. 4.507.2 Duct systems are sized, designed and equipment is selected X using the following methods: 1. Establish heat loss and heat gain values according to ANSI /ACCA 2 Manual J -2004 or equivalent. 2. Size duct systems according to ANSI /ACCA 1 Manual D- 2009 or equivalent. 3. Select heating and cooling equipment according to ANSI /ACCA 3 Manual S -2004 or equivalent. Outdoor Air Quality Reserved Installer tali and ci _ Ina-,. to 0 ti 702.1 HVAC system installers are trained and certified in the proper X installation of HVAC systems. 702.2 Special inspectors employed by the enforcing agency must be X qualified and able to demonstrate competence in the discipline they are inspecting. 703.1 Verification of compliance with this code may include X construction documents, plans, specifications builder or installer certification, inspection reports or other methods acceptable to the enforcing agency which show substantial conformance. 1. Green building measures listed in this table may be mandatory if adopted by a city, county as specified in Section 101.7. 2. Required prerequisite for this Tier. SARATOGA CITY COUNCIL c bs RETREAT 2013 WFOVL MEETING DATE: January 25, 2013 AGENDA ITEM: DEPARTMENT: Community Development CITY MANAGER: Dave Anderson PREPARED BY: James Lindsay DIRECTOR: James Lindsay SUBJECT: Provide Direction on the Sale of Alcohol for Off -Site Consumption as a Permitted Use RECOMMENDED ACTION: Provide direction to staff. SUMMARY: At its June 20, 2012 meeting, the City Council directed staff to schedule a discussion of retail sales of beer and wine as a permitted use for the 2013 City Council Retreat. The Council also directed staff to provide the following information for the retreat: • A list of cities that allow retail beer and wine sales as a permitted use. • Information on how other cities make the public convenience or necessity determination. BACKGROUND: Any business in the State of California that wish to engage in the retail beer and wine (off -sale) sales must acquire an off -sale license from the California Department of Alcoholic Beverage Control (ABC). When an application is submitted for an new off -sale license, ABC will require the applicant to obtain approval from the city the business is located in. The following table contains a sample of Bay Area cities that allow retail beer and wine sales as a permitted use. City Los Altos Conditions On Permitted Alcohol Lafayette Danville Palo Alto Downtown district only Walnut Creek Downtown at the ground floor of a multi -story building (not within a standalone building) Mountain View Commercial Arterial Zone Campbell Gifts shops and florists when sales of alcohol are incidental to the primary activity San Jose When sold in conjunction with gift baskets, balloons or flowers Page 1 of 3 A public convenience or necessity (PC/N) statement is required by the California Department of Alcoholic Beverage Control (ABC) for off -sale (retail) licenses in a "high crime" area or where there is an "undue concentration" of licenses. The terms are defined to include a policing area that has a 20% higher crime rate than the rest of the city or county police districts; and to include a census tract where the ABC licenses issued meet or exceed the county license average. Either high crime or undue concentration will trigger the requirement of a PC/N statement. Attachment A is a map showing the areas of the City that require a PC/N statement for new off -sale licenses. There is not statutory limit on the number of PC/N determination that a local jurisdiction can make. The cities included in the previous table, with the exception of San Jose, allow their staff to make the public convenience and necessity (PC/N) determination statement when the retail sale of alcohol is permitted. Their Planning Commissions makes the determination when alcohol sales requires a conditional use permit. DISCUSSION: Any business in Saratoga (except tasting rooms in the C -H districts) engaged in the sale of alcoholic beverages is required to obtain a conditional use permit (CUP). The City Code does not differentiate between alcohol sales for on -site or off -site consumption. The City currently has thirteen businesses that have ABC licenses, two of which are tasting rooms not associated with a winery. License Type Type of License Example of Local Businesses Type 20 Off Sale Beer & Wine Vignehaute Group, Mustard Hill Cellars, Vine Life, Rya Cochrane Wines Type 42 On Sale & Off Sale Beer & Wine Inn at Saratoga, Uncorked (tasting room), Ruth Roberts Vintners Collective (tasting room), Gene's, Bell Tower Bistro Type 21 Off Sale General (all types of Safeway, Gene's, Stop & Save, CVS alcohol The application fee for a new CUP is $3,550 for an Administrative permit (businesses less than 4,000 square feet) or $4,700 for a CUP requiring Planning Commission approval. An Administrative CUP review process takes 3 -4 weeks and a CUP requiring Planning Commission review can take 2 -4 months depending on its complexity. After obtaining CUP approval by the City, the business must then apply for an ABC license. According to ABC, a license can take between 2 to 16 months, depending on if the permit is protested. Attachment B is a flow chart illustrating the ABC application process. The CUP process and ABC's licensing process have separate public noticing components. Page 2 of 3 OPTIONS: A. Direct staff to prepare an ordinance allowing the sale of beer and wine for off -site consumption as a permitted use in all commercial zoning districts: 1. With no restrictions on primary use, size, hours, etc. 2. Only when approved by the Community Development Director as incidental to a retail establishment. 3. Only for businesses not exceeding 2,000 square feet in area and provide service on site between the hours of 8:00 A.M and 10:00 P.M. B. Make no changes, continue to require a CUP for the sale of beer and wine for off -site consumption. ATTACHMENTS A. Off -Sale Undue Concentration Map B. ABC Application Flow Chart Page 3 of 3 17 Mount Eden Saratoga' 70280 Active: 1 �► PC /N:Threshold::4 ,b`� ; Active:2 5 076, PC /N Threshold: 3 Ln Active 1 RUN Threshold: 3 Active:0 C6 x �� U0 PC /N Threshold: 3 _1 - �aP � a�0 . N �a ►„mot u Active: 0 PC /N Threshold: 4 Congress Springs Rd 0' /,75073,01 0 � /�, siq Q Active: 2 F PC &N Threshold: 2 PC /N Threshold The number of licenses triggering a Public Convenience or Necessity (PC /N) determination by Census Tract Pd Y g/ 5073.02 Monte Sereno 48956 5070.01 ABC Licenses Off -Sale Retail Only 6/20/2012 State of California • Department of Alcoholic Beverage Control ALCOHOLIC BEVERAGE LICENSE - APPLICATION PROCESS Includes application for a new license, premises -to- premises transfer, change in license privileges or ownership change (for example, transfer to new owner, change in stock ownership or adding /dropping a partner). 1 i ApplicatioiSteps ■■■■■SEEM■■ NO It I ■■■■M■■MM■■ YES NO YES HOW LONG DOES IT TAKE? The following are the average waiting periods for a license: Action (includes a 30 -day posting of Public Notice of Application) Decision Non - Protested Application Start/stop —From date application is filed at District Office to issuance 55-65 days Protested Application (Protests Withdrawn After Negotiations) process flow —From date application is filed at District Office to issuance 95 days Protested Application Information flow — Investigation, hearing preparation and administrative review 175 days — Scheduling of Administrative Hearing 60 days — Administrative Law Judge Proposed Decision 30 days — Action by ABC Director 3-10 days — Appeal to ABC Appeals Board 40 days —ABC Appeals Board Decision 120 days — Appeal to District Court of Appeal 30 days — District Court of Appeal's Decision No time mandated — Appeal to California State Supreme Court 30 days — Supreme Court Decision No time mandated YES NO Legend Action IIIIIIII� Decision Start/stop Direction of ENO process flow Document Information flow mm* 1— PRE - APPLICATION STEPS -A person who wants to apply for an ABC license must start with the nearest ABC District Office. An ABC staff member will ask the applicant questions about the proposed operation and determine the type of license needed. The staff member will then advise the applicant what forms and fees are needed to file the application. Some appli- cants, before filing an application with ABC, must first obtain approval from zoning officials, open an escrow, or go to the office of the County Recorder for a certified copy of a Notice of Intended Transfer. 2— APPLICATION FILED AT DISTRICT OFFICE. Generally, all parties must appear at the District Office. This is not generally a "mail-in" process because ABC requires personal information such as personal history affidavits. Fees are paid at this time. The applicant also views a video about ABC laws. A temporary permit may be issued under certain conditions. 3— NOTIFICATION TO LOCAL OFFICIALS. ABC mails a copy of the application to local officials as required by law. If the premises is in the city, a copy goes to the police department, city council and city planning department. If the premises is in the county, a copy goes to the sheriff's department, board of supervisors and district attorney. If local officials have concerns about the issuance of a license, they may request or impose restrictions on the business operation, or they may file a protest. Common concerns are that the license: (a) Would create a public nuisance, (b) Would cause or add to crime in the area, (c) Would be contrary to a zoning law, or (d) Is in a high -crime area or an area that has too many licenses and would not serve public convenience or necessity. In the case of (d), the City Council or Board of Supervisors has 90 days to determine this and notify ABC. If the City Council or Board of Supervisors does not decide within 90 days, ABC may issue the license if the applicant shows ABC that issuance would serve public con- venience or necessity. 4— INVESTIGATION. ABC conducts a thorough investigation, as required by law, to see if the applicant and the premises qualify for a license. Any person may protest the issuance of a license. The protestant must file a written protest within 30 days of either: (a) The date the Public Notice of Application is first posted at the premises, or (b) The date the applicant mails the Notice of Intention to Engage in the Sale of Alcoholic Beverages to persons living within a 500' radius, whichever is later. If a retail license application has been protested and the Department has recommended approval of the license, ABC may issue an Interim Operating Permit upon the applicant's written request. Some grounds for protest or denial of a license are: (a) Applicant is not qualified. For example, the applicant falsified his application, has a disqualifying police record, has a record of chronic insobriety, is not the true owner, or is not at least 21 years of age, and/or (b) Premises is not suitable. For example the premises is too close to a school, church, hospital, playground, nonprofit youth facility or residence and would disturb the facility or resident; the premises is located in a high -crime area and does not serve public convenience or necessity; the applicant does not have legal tenancy; the license would create a public nuisance; zoning is improper for alcohol sales. License conditions are special restrictions placed on a license. Conditions may limit the hours of alcohol sales, the type of entertainment allowed or other aspects of the business. Conditions may eliminate the need to deny a license or may cause a protestant to withdraw his protest. 5— APPLICANT'S RESPONSIBILITIES -It is the applicant's responsibility to: (a) Post the Public Notice of Application at the premises for 30 days, and (b) Give information to ABC as needed for the investigation. In some cases, ABC may also require the applicant to: (a) Publish a notice in the newspaper, (b) Mail a notice to all persons living within a 500' radius of the premises, and/or (c) Obtain proof from the local planning department that the zoning permits an ABC license. 6— DIVISION OFFICE REVIEW. The Division Office reviews all applications that are (a) Protested, (b) Recommended for denial by the District Office, or (c) Nonroutine such as multilevel corporations and partnerships. 7—FINAL REVIEW. Headquarters does a final review. The following may delay issuance of a license: (a) Missing or incorrect documents, (b) Missing or incorrect fees, (c) Liens placed against escrow by the Board of Equalization, Franchise Tax Board, Employment Development Department, Cities and Counties, local Health Departments, and/or (d) The premises is under construction and not yet ready to operate. 8— SCHEDULING OF HEARING. A hearing is scheduled (a) When valid protests have been filed against an application and the applicant and protestant are not able to reach any agreements, and/or (b) If ABC has denied the application, and the applicant requests a hearing. The hearing is scheduled within 60 days. ABC mails a Notice of Hearing to all parties. 9— ADMINISTRATIVE HEARING. A public hearing is held before an administrative law judge (ALJ). ABC counsel represents ABC. The applicant and any protestant(s) may be represented by an attorney or other person, or they can represent themselves at the hearing. The ABC investigator will testify as to his or her investigation. The applicant and any protestant(s) may testify and /or present other evidence. The protestant must appear at the hearing or the protest is abandoned. 1 O—ALJ PROPOSED DECISION. The ALJ has 30 days to prepare a Proposed Decision for consideration by the ABC Director. 7 7— ACTION BY ABC DIRECTOR.TheABC Director adopts or rejects the ALJ's Proposed Decision. If the ABC Director rejects the Proposed Decision, ABC sends a Notice of Rejection to the applicant and any protestant(s). Each party has 30 days from the date of the notice to submit written argument. 12— APPEAL TO ABC APPEALS BOARD. The applicant or any protestant(s) may appeal the Director's Decision to theABCAppeals Board within 40 days. The Board is a three - member panel appointed by the Governor. 13 —ABC APPEALS BOARD DECISION. The Board reviews the record of the administrative hearing and accepts written or oral arguments. It may not accept any new evidence that was not offered at the administrative hearing. The Board usually makes a decision within 120 days. 14— APPEAL TO DISTRICT COURT OF APPEAL. The applicant, any protestant(s) or ABC may appeal to the California District Court of Appeal (DCA) within 30 days of the Appeals Board Decision. 15— DISTRICT COURT OF APPEAL'S DECISION -The DCA reviews the record and renders a decision. The Attorney General represents ABC at the hearing. There is no mandated time period for the DCA to render its decision. 16— APPEAL TO CALIFORNIA SUPREME COURT. The applicant, any protestant(s) or ABC may appeal to the California Supreme Court within 30 days of the DCA decision. The Attorney General represents ABC before the Supreme Court. There is no time mandated for the Supreme Court to render its decision. 17— CALIFORNIA SUPREME COURT DECISION.The California Supreme Court makes a decision to issue or deny the license. STATE OF CALIFORNIA • DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL • (3199) SARATOGA CITY COUNCIL bs 1 RETREAT 2013 MEETING DATE: January 25, 2013 AGENDA ITEM: DEPARTMENT: Community Development CITY MANAGER: Dave Anderson PREPARED BY: CDD Staff DIRECTOR: James Lindsay SUBJECT: Proposed 2013 Miscellaneous Code Updates RECOMMENDED ACTION: Provide direction to staff. REPORT SUMMARY: During the daily review and implementation of the City Code, the identifies specific sections that are sometimes inconsistent with other sections, can be difficult to interpret, or requiring updating. DISCUSSION: The proposed modifications to the City Code are proposed as follows: Update National Pollution Discharge Elimination System ( NPDES) References Update references to the NPDES program throughout the Code. For example Section 15- 06.581 (Definitions) references an effective date of October 17, 2001. Right of Entry to Inspect Abandoned Vehicles City Code Section 9 -55.50 (Right of entry of certain persons) states that any person having the authority to enforce the City Code may enter upon private or public property to examine or inspect a vehicle, trailer or boat so as to assess if the vehicle is abandoned, wrecked or dismantled. If the vehicle is determined to be a public nuisance than the City can begin enforcement actions to remove it. In this same section it states that no entry on private property can occur in the absence of the consent of the owner and tenant without a court order. Staff is proposing to remove the reference that consent is required prior to entry onto private property because it is inconsistent with the portion of the same section that states that City employees may enter onto private property to inspect a vehicle, trailer or boat. Update Definition of Tobacco Products in Chapter 15 — Zoning Regulations Hookah shops or lounges have been growing in popularity in Santa Clara County and tobacco retailers are allowed in commercial zoning districts with a conditional use permit. However, the definition of tobacco productions in the zoning regulations does not include hookah. Page 1 of 4 15- 80.130 (3) Tobacco products means any substance containing any tobacco leaf, including, but not limited to, cigarettes, cigars, bidis, pipe tobacco, snuff, chewing tobacco, and smokeless tobacco The definition of tobacco product created in 2010 for Article 11 -15 — Tobacco -Free Recreation Areas is more comprehensive and includes hookah. 11- 15.010 Tobacco product means any substance containing tobacco leaf, including, but not limited to, cigarettes, cigars, pipe tobacco, hookah tobacco, snuff, chewing tobacco, dipping tobacco, snuf, bidis, or any other preparation of tobacco; and any product or formulation of matter containing biologically active amounts of nicotine that is manufactured, sold, offered for sale, or otherwise distributed with the expectation that the product or matter will be introduced into the human body, but does not include any cessation product specifically approved by the United States Food and Drug Administration for use in treating nicotine or tobacco dependence. Staff is recommending the definition for tobacco product in the Zoning Regulations match the definition within the Parks and Recreation Chapter. Basements — Geotech Review& Light Wells City Code Section 15- 80.035 states that all proposed basements and additions to basements in any area of the City require geotechnical clearance from the City's Geotechnical Consultant. However, not all areas of the City are subject to geotechnical hazards. New construction at the ground level only requires geotechnical review if the property is located within a Geotechnical Hazard Zone. Therefore, staff is recommending basements follow the same review process as ground level construction. Basement construction designs would still require the clearance of a licensed soils engineer to ensure the design is consistent with the underlying soil type. City Code Section 15- 80.035 requires basement light wells to be located outside required setbacks. However, Section 15- 80.010 allows chimneys to project up to 4 feet in the front and rear setbacks and 3 feet in the side setback. Staff would like to modify the Section 15- 80.035 to allow light wells to have similar setbacks as chimneys in the rear and side setbacks and continue to prohibit them in the front setback. Single Family Home Kitchen Definition City Code Section 15- 06.400 defines "kitchen" as a room designed, intended or used for the cooking and preparation of food a dwelling unit is only allowed one kitchen. Based on this definition any room within the house or separate building with a microwave oven and counter space could be defined as a kitchen. Staff would like to expand the definition of "kitchen" by including the requirement for natural gas "hook up" or the availability of a 220 volt electrical supply for a cooking appliance. These additional requirements will help clarify that separate rooms with wet bars, microwaves, or refrigerators are not classified as kitchens. Appeal Period of a Recommendation issued Heritage Preservation Commission City Code Section 13- 20.060 (Appeal) states that ten (10) calendar days is the time limit for filing an appeal of a Heritage Preservation Commission recommendation to the Planning Commission. However, City Code Section 15- 90.050 (Time Limit on notice of appeal) states that 15 days is the time limit for filing an appeal to the Planning Commission. Staff is proposing to correct this inconsistency by modifying City Code Section 13- 20.060 from 10 days to 15 days. Page 2 of 4 Medical Office Professional Office Definitions City Code Section 15- 06.480 defines a "medical office" as a use providing consultation, diagnosis, therapeutic, preventative, or corrective personal treatment services by doctors, dentists, and similar practitioners of medical and healing arts for humans. Based on this definition, physical therapy, acupuncture, and/or mental health could be defined as a medical use. Staff would like to amend the definition so that therapists, healing arts practitioners, and other similar service providers whose activities are similar in impact to office uses (e.g., don't create medical waste) would be regulated equally to an office use. Staff would like to amend City Code Section 15- 06.480, such that the definition of office use would include "therapists ", "healing arts professionals" and other similar service providers that do not create significant odors, noises, or other nuisances. Non - Conforming Structures The stated intent of City Code Article 15 -65 is to limit the number and extent of nonconforming uses and structures by prohibiting or restricting the extension of their useful life. To prevent such perpetuation, the Code prohibits work that will result in a greater than fifty percent increase in the estimated construction cost of the structure that is the subject of the work. Construction cost is based on floor area. Thus, staff would like to simplify the code by replacing the words "estimated construction cost" with "floor area ". Likewise, replace "construction cost" and "expenditure" references throughout, such that: • "major repairs" mean any work that would expand the floor area by twenty to fifty percent or modify the footprint by twenty to fifty percent (City Code Section 15- 65.020(d)) • "minor repairs" mean any work that would expand the floor area by any amount up to twenty percent or modify the footprint by any amount up to twenty percent (City Code Section 15- 65.020(e)) • "reconstruction" means any work that would expand the floor area by over 50% or modify the footprint by over fifty percent (City Code Section 15- 65.020(h)) Administrative Design Review of Major Additions City Code Section 15- 45.065 requires design review approval of any addition that will result in the "expansion or reconstruction of, fifty percent or more of an existing main or accessory structure ". Similar to the previous discussion, staff would like to simplify this language so that it reads "any work that would expand the floor area by over fifty percent ". Likewise, replace the words "removal, replacement, or reconstruction of fifty percent or more of the existing structural elements or members of the exterior walls which define the exterior boundary of a main structure or an accessory structure" with "any work that would modify the footprint by over fifty percent" Story Poles City Code Section 15- 45.065 requires applicants to install story poles before a design review public hearing. The language is ambiguous and makes it difficult for staff to consistently enforce this regulation. Staff would like to replace this language such that story poles "shall be installed no later than three working days prior to advertisement of the public hearing." Page 3 of 4 Temporary Special Event Signs City Code 15- 30.060(d) limits temporary special event signs to no more than eight signs per event. The initial information provided to staff when the sign ordinance was being drafted was not complete as we have since learned that some long standing civic events historically have used more than eight signs per event. Staff is recommending that the quantity and placement of these signs be regulated through the special event permit process and that the Code is amended to remove the limit of eight signs. Page 4 of 4 SARATOGA CITY COUNCIL RETREAT �LrFOxz�. MEETING DATE: January 25, 2013 DEPARTMENT: City Manager's Office PREPARED BY: Dave Anderson City Manager SUBJECT: Strategic Planning Options BACKGROUND: AGENDA ITEM: CITY MANAGER: Dave Anderson DIRECTOR: Dave Anderson Since the 2012 City Council Retreat, the City has been engaged in an effort to develop a strategic plan. In municipal government, a strategic plan describes a shared vision for the city, depicts the anticipated environment of the city in the future, and establishes a plan for achieving the shared vision based on current and forecasted conditions. Following the Retreat, the City began its planning process with review and refinement of the organization's overall goals and establishment of specific objectives to achieve those goals at a study session held on February 29, 2012. During the February study session, Council also began a discussion on mission, vision, and values statements and the role these statements play in the development of an organization's strategic plan. In particular, Council considered whether the planning process should start with mission, vision, and values statements. Consequently, a second study session was scheduled for July 2012 to allow the Council to consider mission, vision, and values statements. After posting of the meeting agenda for the July study session, it was decided that the discussion on the topic needed to be postponed. BEST PRACTICES: Staff has been evaluating the approach taken by the City thus far and researching best practices for strategic plan development. The International City Manager's Association (ICMA) conducted a thorough analysis of local government strategic plans from across the United States in 1993 and again in 2004. Based on this study, author Gerald L. Gordon wrote the book Strategic Planning for Local Government published by ICMA. The book serves as a blueprint for local government strategic planning and defines the essential elements of a municipal strategic plan, which include: - Vision for community - Mission statement of the local government entity - Environmental scan and conclusion about what the unplanned future will be like - List of the community's strengths, weaknesses, opportunities, and threats Pagel of 3 - Goals for a specified time fame - Measurable objectives for each goal - Tactics to be used to address each objective - Implementation plan that includes timelines and group or individual assignments - Description of the plan's relationship to the local government budget and human resources Schedule for performance assessment, periodic reviews, and replanning In addition to the elements of a comprehensive strategic plan, ICMA was also able to capture lessons learned by local government managers who had taken part in strategic planning. These lessons, listed below, are intended to help local governments organizations successfully prepare and implement strategic plans. 1. There are no significant variations in the strategic planning process for different local governments 2. The process needs to be promoted locally 3. Strategic planning begins with strategic thinking 4. The planning group should be more, rather than less, inclusive 5. It is important to assess and announce the core values, or inherent beliefs, of the local leadership 6. The most critical element of the strategic planning process is the environmental scan 7. The strategic plan must outline measureable outcomes that will result from its implementation 8. Those who implement plans need to understand and embrace them 9. Feedback loops and scheduled replanning sessions are important means of ensuring that plans do not become the end but, rather, the means to an end 10. Tie the strategic plan directly to business plans, operational plans, and budgeting 11. Tie strategic goals and objectives directly to employees' performance reviews and compensation. 12. Ensure at the beginning of the process that citizens, the press, and other local stakeholders are aware of the strategic planning 13. Ensure that the plan has the clear support of the most senior elected and appointed officials in the community 14. Strategic plans must incorporate ongoing programs and levels of effort. The strategic plan of a local government should include existing objectives as well as new goals and objectives Items 1 -9 include lessons learned in the 1993 study of strategic planning, which are on page xii of Strategic Planning for Local Government. Items 10 -14, on page 63, are lessons learned added following the 2004 study. DISCUSSION AND NEXT STEPS: Thus far, the City's efforts at strategic planning have been limited to pieces of a comprehensive strategic plan. With the Council considering the City's work plan for the upcoming year at the annual Council Retreat, staff is seeking direction on how the City Council would like to proceed with the strategic plan. Several options that differ in scale, cost, and time been identified for Council to consider. Page 2 of 3 Comprehensive Strategic The approach to strategic planning recommended by ICMA is extensive. It requires community participation, evaluation of current and future conditions, regular oversight, and buy -in from stakeholders within and outside of the organization. The financial and human resources needed to prepare a strategic plan using the ICMA best practices are comparable to those required to update a General Plan Element. Like a General Plan Element, this process would likely require a consultant to lead the process. Staff estimates it may cost up to $250,000 and take roughly 18 months to prepare a strategic plan in accordance with ICMA's prescribed method. While the investment is significant, the benefits of following this process are also considerable. The process recommended by ICMA allows for a plan and long -term goals that are a genuine reflection of stakeholder values. Furthermore, stakeholder support combined with integration of the plan into the organizational culture and operations will help ensure its success. Component(s) of a Strategic Plan Alternatively, the Council may choose to continue to work on one or more components of a strategic plan. For example, the Council could revisit the existing mission and values statements and revise as needed through Council discussion. The Council may also consider preparation of a vision statement. This would be far less costly and time consuming than a comprehensive strategic plan. It could be done internally with City staff or through a consultant. However, this limited approach may lack community buy -in. It may also undermine the community engagement processes used to prepare the current mission and values statements, if the public is not encouraged to participate in the process. Postpone the Strategic Plan A third option for the Council to consider is to postpone the City's strategic plan until all of the General Plan Elements are current. As noted previously, the scale and cost of preparing a strategic plan is comparable to a General Plan Element update. Consequently, Council could program the strategic plan in a similar fashion to General Plan Element updates. Doing so will ensure that the City has the opportunity to appropriately budget funds and staff resources for the strategic plan. In the recent years, the City has been systematically reviewing and updating its General Plan Elements. If the updates continue as currently planned, all of the Elements of the General Plan will be current by the midpoint or close of Fiscal Year 2014/15. If the Council would like to program the strategic plan in a similar manner as a General Plan Element, the Council may schedule the strategic plan for Fiscal Year 2014/15 or 2015/16 following completion of the Noise Element and Housing Element updates. Page 3 of 3 SARATOGA CITY COUNCIL RETREAT �LrFOxz�. MEETING DATE: January 25, 2013 DEPARTMENT: City Manager's Office AGENDA ITEM: CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: Dream Outside the Box — Ideation Exercise SUMMARY: This exercise is intended to provide the City Council and all those present at the City Council Retreat with the opportunity to spark a respectful sharing of ideas for the future of Saratoga. The 3 steps in the exercise are noted below. 1. Capturing Dreams for Saratoga Participants will have 5 minutes to write down what they would like to see happen in Saratoga in the future on an index card. Ideas should relate to Saratoga, but there are no restrictions on the size, scale, complexity, or timing of the ideas. Each index card should contain only one idea. If participants have more than one idea then they may submit more than one index card. Participants will be asked to submit their cards anonymously. Once participants are finished writing down their ideas, they will be asked to place the cards in a box. 2. Sharing Dreams for Saratoga Once all the ideas have been written on index cards and placed in a box, the box will be passed around the room. Each person will be asked to remove one card, read it aloud, and then pass the box on to the next person. No discussion of the ideas will take place during this phase of the exercise. 3. Discussion of Dreams for Saratoga After all the cards have been read out loud, the public will be given some time to share their thoughts on the ideas. Following public comments, each member of the Council will have the opportunity to the ideas for Saratoga that they feel resonate strongly. Index cards and pens will be provided at the City Council Retreat. Page 1 of 1