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HomeMy WebLinkAbout11-20-2013 City Council Agenda Packet6�1 a� 5 ARq OG `�trF0 AGENDA SPECIAL MEETING SARATOGA CITY COUNCIL NOVEMBER 20, 2013 SPECIAL MEETING — 5:30 P.M. — ADMINISTRATIVE CONFERENCE ROOM, 13777 FRUITVALE AVENUE. CALL MEETING TO ORDER — 5:30 P.M. REPORT ON POSTING OF AGENDA (Pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on November 15, 2013) COMMUNICATIONS FROM COMMISSIONS & PUBLIC ORAL COMMUNICATIONS ON NON - AGENDIZED ITEMS Any member of the public will be allowed to address the City Council for up to three (3) minutes on matters not on this agenda. The law generally prohibits the council from discussing or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Communications under Council Direction to Staff. COUNCIL DIRECTION TO STAFF Instruction to Staff regarding actions on current Oral Communications. ADJOURN TO CLOSED SESSION — 5:30 P.M. CONFERENCE WITH LABOR NEGOTIATORS REGARDING EMPLOYEE RECOGNITION (Gov't Code Section 54957.6) A. Employee organizations: Northern California Carpenters Regional Council, Carpenters Forty Six Counties Conference Board; Saratoga Employee Association; Saratoga Management Association Agency designated representatives: Deanna Mouser, Monica LaBossiere, and /or Dave Anderson CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Government Code section 54956.9(d)(1)) Name of cases: Lee v. City of Saratoga (Santa Clara County Superior Court Case No. 1- 12 -CV - 225772) and Lee v. City of Saratoga (Santa Clara County Superior Court Case No. 1- 13 -CV- 253727) CALL JOINT MEETING TO ORDER — 6:00 P.M. ADMINISTRATIVE CONFERENCE ROOM, 13777 FRUITVALE AVENUE 1. Joint Meeting with Saratoga Sister City Recommended Action: Informational Only ADJOURNMENT In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the City Council by City staff in connection with this agenda are available at the office of the City Clerk at 13777 Fruitvale Avenue, Saratoga, CA 95070. Note that copies of materials distributed to the City Council concurrently with the posting of the agenda are also available on the City Website at www.sarato ag ca.us. Any materials distributed by staff after the posting of the agenda are made available for public review at the office of the City Clerk at the time they are distributed to the City Council. In Compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the City Clerk at 4081868 -1269. Notification 24 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR 35.102- 35.104 ADA title II] Certificate of Posting of Agenda: I, Crystal Bothelio, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council was posted and available for public review on November 15, 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 15th day of November 2013 at Saratoga, California. Crystal Bothelio, City Clerk OA Table of Contents Agenda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Appointment of Library Commissioner and Oath of Office Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 8 Attachment A: Resolution of Appointment . . . . . . . . . . . 10 Attachment B: Oaths of Office . . . . . . . . . . . . . . . . . 11 Commendation for Former Saratoga Library Community Librarian Gayathri Kanth Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 12 Attachment A: Commendation Recognizing Gayathri Kanth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 City Council Meeting Minutes Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 15 Attachment A: Minutes for Special and Regular City Council Meeting on November 6, 2013 . . . . . . . . . . . . . 17 Review of Accounts Payable Check Registers Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 27 11/5/2013 Check Register . . . . . . . . . . . . . . . . . . . 29 11/13/2013 Check Register . . . . . . . . . . . . . . . . . . 37 Development Impact Fee Report Impact Fee Report . . . . . . . . . . . . . . . . . . . . . . 40 Ordinance Amending City Code 15- 50.040 (Tree Regulations — Street Trees) Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 44 Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Ordinance Amending Commission Meeting Attendance Requirements Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 49 Attachment A: Proposed Ordinance Amending Commission Meeting Attendance Requirements . . . . . . . . 51 Adoption of the Various 2013 California Uniform Codes with Local Amendments Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 54 Attachment 1 - Summary Table . . . . . . . . . . . . . . . . 59 Attachment 2 - Resolution . . . . . . . . . . . . . . . . . . . 65 Attachment 3 - Ordinance . . . . . . . . . . . . . . . . . . . 83 Ordinance Amending Saratoga City Code to Regulate Banners in City Medians Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 118 Attachment A: Draft Ordinance . . . . . . . . . . . . . . . . . 120 Attachment B: Planning Commission Resolution . . . . . . . . 126 Attachment C: Median Banner Policy . . . . . . . . . . . . . . 134 Annual Audit Reports 2012 -13 Annual Audit Report Acceptance . . . . . . . . . . . 141 CAFR . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 1 Single Audit Report . . . . . . . . . . . . . . . . . . . . . . 279 TDA Report . . . . . . . . . . . . . . . . . . . . . . . . . 291 Appropriation Report . . . . . . . . . . . . . . . . . . . . . 299 SAS 114 Report . . . . . . . . . . . . . . . . . . . . . . . 305 Spring 2013 Issue of The Saratogan Staff Report . . . . . . . . . . . . . . . . . . . . . . . . . 308 2 AGENDA REGULAR MEETING SARATOGA CITY COUNCIL NOVEMBER 20, 2013 REGULAR MEETING — 7:00 P.M. — CIVIC THEATER/COUNCIL CHAMBERS AT 13777 FRUITVALE AVENUE PLEDGE OF ALLEGIANCE ROLL CALL REPORT OF CITY CLERK ON POSTING OF AGENDA (Pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on November 15, 2013) REPORT FROM CLOSED SESSION COMMUNICATIONS FROM COMMISSIONS & PUBLIC Oral Communications on Non- Agendized Items Any member of the public will be allowed to address the City Council for up to three (3) minutes on matters not on this agenda. The law generally prohibits the Council from discussing or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Communications under Council Direction to Staff. Oral Communications - Council Direction to Staff Instruction to Staff regarding actions on current Oral Communications. Communications from Boards and Commissions Council Direction to Staff Instruction to Staff regarding actions on current Communications from Boards & Commissions. ANNOUNCEMENTS 3 CEREMONIAL ITEMS 1. Appointment of Library Commissioner and Oath of Office Recommended action: Adopt the attached resolution appointing Lauren Marty to the Library Commission and direct the City Clerk to administer the Oath of Office. 2. Commendation for Former Saratoga Library Community Librarian Gayathri Kanth Recommended action: Read and present commendation recognizing former Saratoga Library Community Librarian Gayathri Kanth. SPECIAL PRESENTATIONS None CONSENT CALENDAR The Consent Calendar contains routine items of business. Items in this section will be acted in one motion, unless removed by the Mayor or a Council member. Any member of the public may speak to an item on the Consent Calendar at this time, or request the Mayor remove an item from the Consent Calendar for discussion. Public Speakers are limited to three (3) minutes. 3. City Council Meeting Minutes Recommended action: Approve City Council minutes for the Special and Regular City Council Meeting on November 6, 2013. 4. Review of Accounts Payable Check Registers Recommended action: Review and accept check registers for the following accounts payable payment cycles: 11/5/2013 Period 5 11/13/2013 Period 5 5. Development Impact Fee Report Recommended action: Review and accept the annual AB 1600 Development Impact Fee report for the year ended June 30, 2013. 6. Ordinance Amending City Code 15- 50.040 (Tree Regulations — Street Trees) Recommended action: Waive the second reading and adopt the ordinance modifying Article 15- 50.040 of the City Code. 2 PUBLIC HEARINGS Applicants /Appellants and their representatives have a total of ten minutes maximum for opening statements. Members of the public may comment on any item for up to three minutes. Applicant /Appellants and their representatives have a total of five minutes maximum for closing statements. Items requested for continuance are subject to Council's approval at the Council meeting 7. Ordinance Amending Commission Meeting Attendance Requirements Recommended action: Conduct a public hearing; introduce and waive the first reading of the attached ordinance amending Commission meeting attendance requirements in the City Code; and direct staff to place the ordinance on the consent calendar for adoption at the next regular City Council meeting. 8. Adoption of the Various 2013 California Uniform Codes with Local Amendments Recommended action: (I)Introduce and waive the first reading of the attached ordinance adopting and amending the referenced codes and direct the City Attorney to read the title of the codes to be adopted; (2)Introduce the attached resolution making findings regarding proposed amendments to the referenced codes; (3)Call a public hearing for December 4, 2013 to consider adoption of the attached ordinance and resolution; and (4)Direct staff to publish notice of the proposed ordinance adoption in accordance with the special requirements for adopting codes by reference. 9. Ordinance Amending Saratoga City Code to Regulate Banners in City Medians Recommended action: Conduct a public hearing; introduce and waive the first reading of the attached ordinance modifying Sections 15- 30.050 and 15- 30.060 of Chapter 15 (Zoning) of the Saratoga City Code; and direct staff to place the ordinance on the consent calendar for adoption at the next regular City Council meeting. OLD BUSINESS None NEW BUSINESS 10. Annual Audit Reports Recommended action: Review and accept the Fiscal Year 2012/13 Comprehensive Annual Financial Report (CAFR), the Fiscal Year 2012/13 Single Audit Report (Federal Grant Awards), the FY 2012/13 Transportation Development Act Report (MTC Grants), the FY 2013/14 Appropriation Limit Report, and the SAS 114 Required Communications Report. 5 11. Spring 2013 Issue of The Saratogan Recommended action: Accept report and direct staff accordingly. ADHOC & AGENCY ASSIGNMENT REPORTS Mayor Jill Hunter City School Ad Hoc Hakone Foundation Board Hakone Foundation Executive Committee Historical Foundation KSAR Community Access TV Board Village Ad Hoc West Valley Mayors and Managers Association Vice Mayor Emily Lo Hakone Foundation Board Let's Move City Ad Hoc Library Joint Powers Authority Santa Clara Valley Water District Commission Village Ad Hoc West Valley Flood Control & Watershed Advisory Committee Council Member Howard Miller City School Ad Hoc Council Finance Committee Postal Service Liaison Saratoga Ministerial Association Valley Transportation Authority PAC West Valley Solid Waste Management Joint Powers Authority Council Member Manny Cappello Chamber of Commerce Council Finance Committee County HCD Policy Committee Destination Saratoga Liaison Highway 9 Ad Hoc Let's Move City Ad Hoc SASCC TEA Ad Hoc Council Member Chuck Page Association of Bay Area Governments Highway 9 Ad Hoc Santa Clara County Cities Association Santa Clara County Cities Association Selection Committee Santa Clara County Expressway Plan 2040 Policy Advisory Board Sister City Liaison TEA Ad Hoc West Valley Sanitation District 0 CITY COUNCIL ITEMS CITY MANAGER'S REPORT ADJOURNMENT In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the City Council by City staff in connection with this agenda are available at the office of the City Clerk at 13777 Fruitvale Avenue, Saratoga, CA 95070. Note that copies of materials distributed to the City Council concurrently with the posting of the agenda are also available on the City Website at www.saratoaa.ca.us. Any materials distributed by staff after the posting of the agenda are made available for public review at the office of the City Clerk at the time they are distributed to the City Council. In compliance with the Americans with Disabilities Act (ADA), if you need special assistance to participate in this meeting, please contact the City Clerk at (408) 868 -1269. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102 - 35.104 ADA Title II) Certificate of Posting of Agenda: I, Crystal Bothelio, City Clerk for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council for the City of Saratoga was posted on November 15, 2013 at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and was available for public review at that location. The agenda is also available on the City's website at www.saratoga.ca.us Signed this 15th day of November 2013 at Saratoga, California. Crystal Bothelio, City Clerk NOTE: To view current or previous City Council meetings anytime, go to the City Video Archives at www.saratoga.ca.us � Y AgFont+` 11/20 CITY OF SARATOGA CITY COUNCIL MEETING CALENDAR 2013 Regular Meeting — Joint Meeting Sister City Committee 12/04 City Council Reorganization, Regular Meeting — Joint Meeting with Library Commission and Friends of the Saratoga Libraries 12/18 Regular Meeting — Joint Meeting with Hakone Foundation Board 7 v SARATOGA CITY COUNCIL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: Appointment of Library Commissioner and Oath of Office RECOMMENDED ACTION: Adopt the attached resolution appointing Lauren Marty to the Library Commission and direct the City Clerk to administer the Oath of Office. BACKGROUND: Library Commissioner Sharon Andres ended her term October 1, 2013. The City conducted a recruitment to fill the open position on the Library Commission. The City Council interviewed applicants on September 4, 2013 and November 6, 2013 and selected Lauren Marty to serve a full term ending September 30, 2017. FISCAL IMPACTS: CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The appointment to the Library Commission would not be made and the recruitment process would be reopened. ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Update the City's Commission roster. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda Page 1 of 2 0 item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A: Resolution of Appointment Attachment B: Oaths of Office Page 2 of 2 9 RESOLUTION 13- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA APPOINTING ONE MEMBER TO THE SARATOGA LIBRARY COMMISSION WHEREAS, one term was created on the Library Commission when the term of Sharon Andres expired on October 1, 2013; and WHEREAS, the City conducted a recruitment for the vacancy on the Library Commission; and WHEREAS, interviews with the City Council were held on September 4, 2013 and November 6, 2013. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Saratoga does hereby appoint the following individual to the Saratoga Library Commission: NAME COMMISSION TERM Lauren Marty Library October 1, 2013 — September 30, 2017 The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 20th day of November 2013 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: DATE: Crystal Bothelio, City Clerk 10 Jill Hunter, Mayor STATE OF CALIFORNIA COUNTY OF SANTA CLARA I, Lauren Marty, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States and the Constitution of the State of California against all enemies, foreign and domestic; that I will bear true faith and allegiance to the Constitution of the United States and the Constitution of the State of California; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties upon which I am about to enter. Subscribed and sworn to before me on this 20th day of November 2013. Crystal Bothelio City Clerk 11 Lauren Marty, Member Library Commission / SARATOGA CITY COUNCIL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: City Manager's Office PREPARED BY: Brian Babcock Administrative Analyst I CITY MANAGER: Dave Anderson DIRECTOR: Dave Anderson SUBJECT: Commendation for Former Saratoga Library Community Librarian Gayathri Kanth RECOMMENDED ACTION: Read and present commendation recognizing former Saratoga Library Community Librarian Gayathri Kanth. BACKGROUND: The attached commendation honors Gayathri Kanth for her three years of service as Community Librarian for the Saratoga Library. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The commendation would not be presented. ALTERNATIVE ACTION(S): iNa FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. Page 1 of 2 12 ATTACHMENTS: Attachment A: Commendation Recognizing Gayathri Kanth. Page 2 of 2 13 COMMENDATION OF THE CITY COUNCIL OF THE CITY OF SARATOGA HONORING GAYATHRIKANTH WHEREAS, for 15 years, Gayathri Kanth has held numerous positions with the Santa Clara County Library District, including Supervising Librarian for the Cupertino Library, Community Librarian for the Saratoga Library, and most recently, Community Librarian for the Cupertino Library; and WHEREAS, Gayathri earned a Master of Library and Information Science from San Jose State University; and WHEREAS, from August 2010 to October 2013, Gayathri coordinated the operation of the Saratoga Library, including supervising more than 35 staff members, overseeing the 48,000- square -foot building and the Library's 277,000 material collection with 1.3 million circulation per year, and an average annual budget of $2.5 million; and WHEREAS, Gayathri planned and hosted a successful "Saratoga Library's 10th Anniversary Celebration," a community event in May 2013 attended by more than 1,300 people; and WHEREAS, other successful Saratoga Library projects have included the creation of a Local Government Resource Center with support from the City of Saratoga, assisting with the outreach efforts and fundraising activities of the Friends of the Saratoga Libraries, working with Saratoga Library Commissioners in outreach and advocacy presentations, and design and execution of partnership programs and outreach events at local schools; and WHEREAS, Gayathri has been active with numerous professional affiliations, including the California Library Association and San Jose State University's School of Library and Information Science Alumni Association; and WHEREAS, Gayathri has developed and maintained positive relationships with Saratoga City Council, City staff, Library Commissioners, local organizations, media, Library staff, and residents; and WHEREAS, Gayathri Kanth has been an integral part of the Santa Clara County Library District's mission to create an open forum promoting knowledge, ideas, and cultural enrichment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Saratoga does hereby recognize and thank Gayathri Kanth for her work at the Saratoga Library and dedication the Saratoga community she demonstrated as the Saratoga Library Community Librarian. WITNESS MY HAND AND THE SEAL OF THE CITY OF SARATOGA this 20th day of November 2013. Jill Hunter, Mayor City of Saratoga SARATOGA CITY COUNCIL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: City Council Meeting Minutes RECOMMENDED ACTION: Approve City Council minutes for the Special and Regular City Council Meeting on November 6, 2013. BACKGROUND: The draft minutes for the Special and Regular City Council Meeting on November 6, 2013 are attached to this report for Council review and approval. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: N/A ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Retain minutes for legislative history. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. Page 1 of 2 15 ATTACHMENTS: Attachment A: Minutes for Special and Regular City Council Meeting on November 6, 2013 Page 2 of 2 16 MINUTES WEDNESDAY, NOVEMBER 6, 2013 SARATOGA CITY COUNCIL SPECIAL MEETING At 5:30 p.m., the City Council conducted interviews for the Library Commission in the Administrative Conference Room at City Hall at 13777 Fruitvale Avenue. At 6:00 p.m., the Council held a Joint Meeting with State Senator Jim Beall Jr., State Assembly Member Paul Fong, and Santa Clara County Supervisor Joe Simitian. SARATOGA CITY COUNCIL REGULAR MEETING Mayor Hunter called the meeting to order at 7:02 p.m. and led the Pledge of Allegiance. ROLL CALL PRESENT Council Members Manny Cappello, Howard Miller, Vice Mayor Emily Lo, Mayor Jill Hunter ABSENT: Council Member Chuck Page (excused) ALSO PRESENT: Dave Anderson, City Manager Richard Taylor, City Attorney Crystal Bothelio, City Clerk John Cherbone, Public Works Director Mary Furey, Finance and Administrative Services Director Michael Taylor, Recreation and Facilities Director Kate Bear, City Arborist Macedonio Nunez, Public Works Engineer Debbie Bretschneider, Deputy City Clerk Patrick Tsai, City Manager's Office Intern REPORT OF CITY CLERK ON POSTING OF AGENDA City Clerk Crystal Bothelio reported that pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on November 1, 2013. REPORT FROM CLOSED SESSION None COMMUNICATIONS FROM COMMISSIONS & PUBLIC Oral Communications on Non- Aundized Items State Senator Jim Beall, Jr. shared an overview of the Joint Meeting with the City Council. He noted that he has been working on Tax Equity Allocation legislation. Additionally, he invited the public to meet with him on Friday, November 15, 2013 from 8:30 a.m. to 10:00 a.m. at Big Basin Cafe at 14471 Big Basin Way in Saratoga. State Assembly Member Paul Fong also spoke about the Joint Meeting. He thanked the City of Saratoga and Saratoga Area Coordinating Council for co- hosting the Senior Scam Stopper event at the senior center earlier in the year. He also spoke about legislation he wrote that is intended to increase government transparency, which was passed this year. 17 Santa Clara County Supervisor Joe Simitian commented on his history with the City and expressed his appreciation for the partnership between the City and County. He also announced that he has been holding Sidewalk Office Hours throughout Supervisory District 5, including a visit to the Saturday farmers market in Saratoga at West Valley College. He invited the public to attend his Sidewalk Office Hours to share their interests and concerns with him. Trish Cypher addressed the City Council and raised concerns about large regional governmental associations and organizations in the Bay Area. Oral Communications - Council Direction to Staff None Communications from Boards and Commissions None Council Direction to Staff None ANNOUNCEMENTS Council Member Miller announced that the City's Recreation Activity Guide was mailed to residents the week of November 4, 2013. The guide lists a variety of programs and classes for all ages and interests. Council Member Lo announced a pilot program at Saratoga Library called Virtual Lawyers in the Library. On November 18 from 5:00 p.m. to 6:30 p.m. and December 16 from 5:00 p.m. to 7:00 p.m., members of the public can meet virtually with an attorney for a free 20- minute consultation. The public can make an appointment and find out more online at http: / /www.probonoproject.ora /virtual- clinics /. Council Member Miller also announced the Silicon Valley Turkey Trot on Thanksgiving morning. He encouraged residents to participate in this fun event, which benefits Second Harvest Food Bank, Housing Trust Silicon Valley, and Healthier Kids Foundation Santa Clara County. The public can register online at http: / /svturkeytrot.com/. Mayor Hunter announced that the annual Tree Lighting and Wine Stroll will be held the day after Thanksgiving in Saratoga Village. The tree lighting ceremony will take place at 5:30 p.m. at Blaney Plaza. Visit hM2: / /www.saratogachamber.or2 /dickens holiday, for additional information. CEREMONIAL ITEMS Commendations for Outgoing Parks and Recreation Commissioners Recommended action: Read and present commendations for Vita Bruno and Thomas Soukup. im Mayor Hunter presented proclamations to Vita Bruno and Thomas Soukup for their service on the Parks and Recreation Commission. 2. Appointment of Parks and Recreation Commissioners and Oath of Office Recommended action: Adopt the attached resolution appointing Ping Li and Rick Pearce to the Parks and Recreation Commission and direct the City Clerk to administer the Oath of Office. RESOLUTION NO. 13 -070 MILLER/CAPPELLO MOVED TO ADOPT THE RESOLUTION APPOINTING PING LI AND RICK PEARCE TO THE PARKS AND RECREATION COMMISSION AND DIRECT THE CITY CLERK TO ADMINISTER THE OATH OF OFFICE. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. City Clerk Crystal Bothelio administered the oath of office to Ping Li and Rick Pearce. 3. Pancreatic Cancer Awareness Month Proclamation Recommended action: Read and present the proclamation declaring November 2013 as Pancreatic Cancer Awareness Month in the City of Saratoga. Mayor Hunter presented the proclamation declaring November 2013 as Pancreatic Cancer Awareness Month to representatives of the Pancreatic Cancer Action Network. SPECIAL PRESENTATIONS None CONSENT CALENDAR 4. City Council Meeting Minutes Recommended action: Approve City Council minutes for the Special and Regular City Council Meeting on October 16, 2013. Vice Mayor Lo removed this item from the Consent Calendar to seek clarification on a section of the minutes. LO/MILLER MOVED TO APPROVE CITY COUNCIL MINUTES FOR THE SPECIAL AND REGULAR CITY COUNCIL MEETING ON OCTOBER 16, 2013. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. 5. Review of Accounts Payable Check Registers Recommended action: Review and accept check registers for the following accounts payable payment cycles: 10/15/2013 Period 4 19 10/24/2013 Period 4 10/29/2013 Period 4 CAPPELLO /MILLER MOVED TO ACCEPT CHECK REGISTERS FOR THE FOLLOWING ACCOUNTS PAYABLE PAYMENT CYCLES: 10/15/2013 PERIOD 4:10/24/2013 PERIOD 4: AND 10/29/2013 PERIOD 4. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. 6. Treasurer's Report for the Month Ended September 30, 2013 Recommended action: Review and accept the Treasurer's Report for the month ended September 30, 2013 CAPPELLO /MILLER MOVED TO REVIEW AND ACCEPT THE TREASURER'S REPORT FOR THE MONTH ENDED SEPTEMBER 30, 2013. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. 7. Agreement with the Santa Clara County FireSafe Council Recommended action: Authorize the City Manager to execute an agreement with the Santa Clara County FireSafe Council in the amount of $25,000 per year through June 30, 2018 to establish a hazardous fuel reduction program in the City of Saratoga. This item was removed from the Consent Calendar for public comment. Mayor Hunter invited public comment. The following person spoke: Trish Cypher No one else requested to speak. MILLER/LO MOVED TO AUTHORIZE THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE SANTA CLARA COUNTY FIRESAFE COUNCIL IN THE AMOUNT OF $25,000 PER YEAR THROUGH JUNE 30, 2018 TO ESTABLISH A HAZARDOUS FUEL REDUCTION PROGRAM IN THE CITY OF SARATOGA. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. 8. Memorandum of Understanding for Use of Saratoga Federated Church Storage Area for Emergency Operations Center Supplies Recommended action: Authorize the City Manager to sign the Memorandum of Understanding (MOU) between the City of Saratoga and the Saratoga Federated Church for use of the exterior church storage area for storing Emergency Operations Center supplies and materials. CAPPELLO/MILLER MOVED TO AUTHORIZE THE CITY MANAGER TO SIGN THE MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF SARATOGA AND THE SARATOGA FEDERATED CHURCH 4 20 FOR USE OF THE EXTERIOR CHURCH STORAGE AREA FOR STORING EMERGENCY OPERATIONS CENTER SUPPLIES AND MATERIALS. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. PUBLIC HEARINGS 9. Quito Road Bridges Replacement Project Public Review Recommended action: Accept public testimony regarding the Quito Road Bridges Replacement Project and direct staff to review and refine the project design based on further public outreach and consultation. Council Member Miller requested that items 9 and 13 be taken together. The Council concurred. Public Works Director John Cherbone presented the staff report. Mayor Hunter invited public comment on the item. The following people requested to speak: Scott Robinson indicated support for the project with input and involvement from residents near the project. James Dillon indicated support for the project with input and involvement from residents near the project. Petra Jakobskruger indicated support for the project with input and involvement from residents near the project. Kathy Dolan indicated support for the project with input and involvement from residents near the project. Ron Hills indicated support for the project with input and involvement from residents near the project. Steve Sfarzo indicated support for the project with input and involvement from residents near the project Maria Hinz requested additional information about the project. Trish Cypher raised concerns about the mitigation plans for the project and construction costs Gary Gold indicated a neutral position on the project and requested additional communications to the residents near the project and continued community involvement in the project. James R. requested increased communications to residents near the project and citizen participation in the project design. 5 21 Dan Banerje requested increased communication to residents near the project. Jean Hardwicke requested that she be included in notifications on the project. Paul requested additional information about the bridge design. Carole Shebanek raised concerns about traffic detours and safety for pedestrians on the detour routes. Diana Anderson commented that she was concerned that the two bridges would have a similar design to the one at Quito Road and Bicknell Road. Ronda Ross noted some areas of concern regarding the project plans. No one else requested to speak. MILLER/LO MOVED TO: 1) AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT FOR CONSULTING SERVICES WITH THE MARK THOMAS & COMPANY FOR DESIGN FOR THE QUITO ROAD BRIDGE REPLACEMENT PROJECT FOR THE AMOUNT OF $322,462; AND 2) AUTHORIZE THE STAFF TO EXECUTE CHANGE ORDERS TO THE DESIGN CONTRACT UP TO $75,000 TO ADDRESS IDEAS AND CONCERNS SUBMITTED BY THE PUBLIC DURING THE COURSE OF THE DESIGN PROCESS. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. MILLER/CAPPELLO MOVED TO DIRECT STAFF TO REFINE THE PROJECT DESIGN BASED ON FURTHER PUBLIC OUTREACH AND CONSULTATION; DEFINE AND IMPROVE THE PUBLIC INPUT PROCESS FOR THE QUITO ROAD BRIDGES PROJECT; ESTABLISH A MITIGATION PLAN IN THE DESIGN PHASE OF THE PROJECT; PROACTIVELY OUTREACH TO PROPERTY OWNERS THAT THE CITY WILL NEED TO ACQUIRE PROPERTY FROM FOR THE PROJECT; ESTABLISH CLEAR GOALS FOR THE CONSTRUCTION OF THE PROJECT AND FOR POST CONSTRUCTION, INCLUDING CONSTRUCTION DETOUR ROUTE MITIGATION, NOISE AND DIRT REDUCTION, AND SAFETY EFFORTS; AND ENGAGE THE CITY'S TRAFFIC ENGINEER AND THE TRAFFIC SAFETY COMMISSION IN THE PROJECT. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. 10. Adoption of Tree Risk Management Policy and Amendment of Zoning Code 15- 50.040 Recommended action: 1. Conduct a public hearing. 2. Introduce and waive the first reading of the attached ordinance amending Section 15- 50.040 of the City Code and direct staff to place the ordinance on the consent calendar for adoption at the next regular meeting of the City Council. 3. Adopt the Tree Risk Management Policy. Public Works Director John Cherbone and City Arborist Kate Bear presented the staff report. 6 22 Mayor Hunter invited public comment on the item. No one requested to speak. RESOLUTION NO. 13 -071 MILLER/CAPPELLO MOVED TO: 1. CONDUCT A PUBLIC HEARING, 2. INTRODUCE AND WAIVE THE FIRST READING OF THE ATTACHED ORDINANCE AMENDING SECTION 15- 50.040 OF THE CITY CODE AND DIRECT STAFF TO PLACE THE ORDINANCE ON THE CONSENT CALENDAR FOR ADOPTION AT THE NEXT REGULAR MEETING OF THE CITY COUNCIL; AND 3. ADOPT THE TREE RISK MANAGEMENT POLICY. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. OLD BUSINESS 11. Renewal of Facility Use Agreement with Saratoga Area Senior Coordinating Council Recommended action: Accept report and adopt a Resolution authorizing the City Manager to execute the Agreement for Use of Facilities with the Saratoga Area Senior Coordinating Council. Recreation and Facilities Director Michael Taylor presented the staff report. Mayor Hunter invited public comment on the item. Lisa Huening, SASCC President, spoke. No one else requested to speak. RESOLUTION NO. 13 -072 CAPPELLO /MILLER MOVED TO ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT FOR USE OF FACILITIES WITH THE SARATOGA AREA SENIOR COORDINATING COUNCIL. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. 12. Reassignment of Previously Allocated Funds for McWilliams House Improvements Recommended action: Accept report and move to approve the reassignment of previously allocated CIP funds for the McWilliams House Improvements. Recreation and Facilities Director Michael Taylor presented the staff report. Mayor Hunter invited Annette Stranksy, President of the Saratoga Historical Foundation Board of Directors, to address the Council. Annette Stransky, President of the Saratoga Historical Foundation Board of Directors, spoke about the reassignment of previously allocated CIP funds for McWilliams House improvements. 7 23 MILLER/CAPPELLO MOVED TO APPROVE THE REASSIGNMENT OF PREVIOUSLY ALLOCATED CIP FUNDS FOR THE MCWILLIAMS HOUSE IMPROVEMENTS FOR UP TO ONE YEAR. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. NEW BUSINESS 13. Quito Road Bridges — Award of Design Contract Recommended action: 1. Authorize the City Manager to execute a contract for consulting services with the Mark Thomas & Company for design for the Quito Road Bridge Replacement Project for the amount of $322,462. 2. Move to authorize the staff to execute change orders to the design contract up to $75,000 to address ideas and concerns submitted by the public during the course of the design process. The City Council heard Item 13: Quito Road Bridges — Award of Design Contract with Item 9: Quito Road Bridges Replacement Project Public Review. 14. Proposed Water Supply Improvements Assessment District Recommended action: Consider and provide direction to staff regarding the proposal from the Arrowhead Cooperative Company, Inc. to establish an assessment district to construct water supply improvements to serve 39 homes and upon completion transfer those improvements to the San Jose Water Company. City Attorney Richard Taylor presented the staff report. Paul Hansen of the Arrowhead Cooperative Company made a brief presentation to the City Council. Mayor Hunter invited public comment on the item. The following person spoke: Rick Pearce No one else requested to speak. LO /MILLER MOVED TO DIRECT STAFF TO WORK WITH THE ARROWHEAD COOPERATIVE COMPANY, INC. TO ESTABLISH AN ASSESSMENT DISTRICT TO CONSTRUCT WATER SUPPLY IMPROVEMENTS TO SERVE 39 HOMES AND UPON COMPLETION TRANSFER THOSE IMPROVEMENTS TO THE SAN JOSE WATER COMPANY. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. 15. Approval of Updated City of Saratoga Records Retention Schedule Recommended action: Adopt resolution approving the updated records retention schedule. N. 24 Patrick Tsai, City Manager's Office Intern, presented the staff report. Mayor Hunter invited public comment on the item. No one requested to speak. RESOLUTION NO. 13 -073 MILLER/LO MOVED TO ADOPT RESOLUTION APPROVING THE UPDATED RECORDS RETENTION SCHEDULE, INCLUDING THE INCREASED RETENTION PERIOD FOR PETITIONS AND BRIDGES AND OVERPASS REPORTS AS SHOWN IN THE DESK ITEM PRESENTED BY STAFF. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. ADHOC & AGENCY ASSIGNMENT REPORTS Mayor Jill Hunter City School Ad Hoc — Mayor Hunter shared she attended an event at Saratoga School. During the event, she expressed her gratitude for the respectful behavior of Saratoga Schoolchildren in the Village. She also commented upon Eagle Scout Court of Honor events that she has been attending. West Valley Mayors and Managers Association — the last meeting was held at Bell Tower Bistro and the group discussed partnerships with schools and Youth Commissions. Vice Mayor Emily Lo Library Joint Powers Authority — the Authority accepted a 10 -year maintenance and improvement plan for the libraries in the district. Additionally, the new administration building — now referred to as the Service and Support Center — is nearly complete. An Open House is scheduled for December 6, 2013 from 3:00 p.m. to 5:00 p.m. Santa Clara Valley Water District Commission — at the last meeting, it was announced that the flood control and watershed advisory committees would be combined with the Water District Commission starting in 2014. Additionally, new government organizations, such as the Midpeninsula Regional Open Space District, will be invited to participate in the Commission. Ad hoc committees will be formed to work on a variety of subject matters. Council Member Howard Miller City School Ad Hoc — Council Member Miller shared that he attended a meeting with Campbell Union School District Board Members to discuss how the City and School District coulds work together more closely. Council Finance Committee — the City is nearing the end of its annual audit with the City's new auditor. Saratoga Ministerial Association — during the last meeting, the Thanksgiving Day service was discussed. Council Member Cappello will be participating in the service. Valley Transportation Authority PAC— the November meeting was canceled. West Valley Solid Waste Management Joint Powers Authority — the Board will be meeting on November 7, 2013. The agenda includes evaluation of the Executive Director and Authority Attorney. I 25 Council Member Manny Cappello Destination Saratoga Liaison — the group is working on the Village dinner event scheduled for June 22, 2014. The event will be limited to 300 attendees. Additionally, the public relations consultants have been doing a nice job getting placements in various magazines and attracting reporters to write stories on Saratoga. SASCC — Council Member Cappello provided an update on the SASCC health and wellness fair held at West Valley College. He also shared that SASCC will be holding its winter dance on January 25, 2014, the Italian Dinner is scheduled for June 7, 2014, and the Board is planning a senior symposium in February 2014 in partnership with Congresswoman Anna Eshoo. Council Member Chuck No report CITY COUNCIL ITEMS None CITY MANAGER'S REPORT City Manager Dave Anderson spoke about the West Valley Mayors and Managers meeting and shared that Recreation and Facilities Director Michael Taylor attended the meeting to share his experiences engaging schools. City Manager Dave Anderson also announced that he would be out of the office November 7, 2013 to November 11, 2013. Michael Taylor will be acting City Manager. ADJOURNMENT CAPPELLO /MILLER MOVED TO ADJOURN THE MEETING AT 10:40 P.M. MOTION PASSED. AYES: HUNTER, LO, MILLER, CAPPELLO. NOES: NONE. ABSENT: PAGE. Minutes respectfully submitted: Crystal Bothelio, City Clerk 10 26 SARATOGA CITY COUNCIL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Gina Scott DEPT. DIRECTOR: Mary Furey SUBJECT: Review of Accounts Payable Check Registers RECOMMENDED ACTION: Review and accept check registers for the following accounts payable payment cycles: 11/5/2013 Period 5 11/13/2013 Period 5 REPORT SUMMARY: Attached are Check Registers for: Type of Checks Date Starting Check # Ending Check # Total Checks Amount Checks Released Prior Check Register Date Ending Check # Accounts Payable 11/5/13 124174 124247 74 174,793.89 11/05/13 10/29/13 124173 Accounts Payable 11/13/13 1 124248 1 124278 31 1 146,766.15 11/13/13 11/5/13 124247 Accounts Payable checks issued for $20,000 or greater: Date Check # Issued to Fund Dept. Purpose Amount 11/05/13 124185 City of Campbell General PW Solid Waste /JPA 13/14 32,695.00 11/13/13 124248 Chrisp Company CIP Streets Project PW Street Signs 20,567.50 11/13/13 124270 Santa Clara VTA General PW CMP Agency Fees 21,691.27 11/13/13 1 124273 Shute Mihaly & Weinberger General Legal Attorney Services 20,810.73 Accounts Payable checks voided during this time period: AP Date I Check # Issued to Reason Status Amount 10/01/13 1 123961 lYingQin INever Received Check Reissue check 125.00 27 Cash reductions by fund: Period 5 Period 5 Fund # Fund Description 11105113 11/13/13 Total I I I General Fund 152,858.33 91,560.63 244,418.96 231 Village Lighting 2,920.56 2,920.56 232 Azule Lighting 244.56 244.56 233 Sarahills Lighting 256.36 256.36 241 Arroyo de Saratoga Landscape 68.00 68.00 242 Bonnet Way Landscape 170.00 170.00 243 Carnelian Glen 68.00 78.35 146.35 244 Cunningham/Glasgow Landscape 135.00 46.83 181.83 245 Fredericksburg Landscape 102.00 102.00 246 Greenbriar Landscape 1,010.12 1,010.12 247 Kerwin Ranch Landscape 1,688.25 644.54 2,332.79 248 Leutar Court Landscape 75.00 75.00 249 Manor Drive Landscape 130.00 126.68 1 256.68 251 McCartysville Landscape 250.00 19.27 269.27 252 Prides Crossing Landscape 405.00 24.56 429.56 253 Saratoga Legends Landscape 330.00 525.36 855.36 254 Sunland Park Landscape 260.00 423.32 683.32 255 Tricia Woods Landscape 34.00 23.13 1 57.13 271 Beauchamps Landscape 68.00 329.55 397.55 272 Bellgrove Landscape 1,710.00 1,141.06 2,851.06 273 Gateway Landscape 171.59 171.59 274 Horseshoe Landscape /Lighting 135.00 323.04 458.04 275 Quito Lighting 489.33 806.15 1 1,295.48 276 Tollgate LLD 132.30 132.30 277 Village Commercial Landscape 1,250.26 1,250.26 278 Brookglen L &L 50.00 50.00 311 Library GO Bond Debt Service - 411 CIP Street Projects 770.73 23,323.63 24,094.36 412 CIP Park & Trail Projects - 413 CIP Facility Projects 365.97 5,000.00 5,365.97 414 CIP Admin Projects - 421 Tree Fund - 431 Grant Fund - CIP Streets 391.59 391.59 432 Grant Fund - Parks & Trails 1,680.00 6,061.56 7,741.56 433 Grant Fund - Facilities - 434 Grant Fund - Admin Projects - 481 Gas Tax Fund - 611 Liability/Risk Mgt - 612 Workers' Comp - 621 Office Support 593.62 593.62 622 IT Services 1,478.05 1,478.05 623 Vehicle & Equipment Maint 2,244.81 180.05 2,424.86 624 Building Maintenance 6,929.20 9,227.00 16,156.20 631 Vehicle & Equipment Replacement - 632 IT Equipment Replacement 2,229.70 2,229.70 TOTAL 174,793.89 146,766.15 - 321,560.04 FOLLOW UP ACTION: N/A ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Check Registers in the 'A/P Checks By Period and Year' report format SUNGARD PUBLIC SECTOR DATE: 11/05/2013 CITY OF SARATOGA TIME: 15:12:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131105 00:00:00.000' ACCOUNTING PERIOD: 5/14 PAGE NUMBER: 1 ACCTPA21 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 124174 11/05/13 234 A T & T 6246202 MNTHLY RECUR CHARGES 0.00 178.97 11111 124174 11/05/13 234 A T & T 6246202 ALARM SYSTEM PHONES 0.00 90.35 11111 124174 11/05/13 234 A T & T 6246202 SR CENTER ALARMS 0.00 32.25 11111 124174 11/05/13 234 A T & T 1117102 EMERGENCY RESPONSE 0.00 193.67 11111 124174 11/05/13 234 A T & T 6246202 PROSPECT CENTER 0.00 76.01 11111 124174 11/05/13 234 A T & T 6223201 PROSPECT CTR INTERNET 0.00 82.00 11111 124174 11/05/13 234 A T & T 1115301 CORP YARD EMERG LINE 0.00 43.93 11111 124174 11/05/13 234 A T & T 1115301 BLANEY PHONE MODEM 0.00 15.85 TOTAL CHECK 0.00 713.03 11111 124175 11/05/13 35 ACCENT GRAPHICS 1114101 NAME PLATES /CARDS 0.00 47.77 11111 124175 11/05/13 35 ACCENT GRAPHICS 1114201 NAME PLATES /CARDS 0.00 71.68 11111 124175 11/05/13 35 ACCENT GRAPHICS 1113101 NAME PLATES /CARDS 0.00 71.68 TOTAL CHECK 0.00 191.13 11111 124176 11/05/13 798 ANGELINA, PATRICIA 1116101 INSTRUCTOR -ROSEN 0.00 269.00 11111 124176 11/05/13 798 ANGELINA, PATRICIA 1116101 INSTRUCTOR -ROSEN 0.00 314.50 TOTAL CHECK 0.00 583.50 11111 124177 11/05/13 327 BELANGER, CHRISTINE 1116101 INSTRUCTOR -DANCE 0.00 84.00 11111 124177 11/05/13 327 BELANGER, CHRISTINE 1116101 INSTRUCTOR -DANCE 0.00 42.00 11111 124177 11/05/13 327 BELANGER, CHRISTINE 1116101 INSTRUCTOR -DANCE 0.00 210.00 TOTAL CHECK 0.00 336.00 11111 124178 11/05/13 641 BKF ENGINEERS 4119122 -001 PROF SVCS THRU 9/15 0.00 50.73 11111 124178 11/05/13 641 BKF ENGINEERS 4319122 -001 PROF SVCS THRU 9/15 0.00 391.59 TOTAL CHECK 0.00 442.32 11111 124179 11/05/13 500 BRIAN HOLLOMAN KINCAID 111 REFUND FACILITY 0.00 500.00 11111 124180 11/05/13 1013 CAL SPORTS CLUB 1116101 INSTRUCTOR - ARCHERY 0.00 329.70 11111 124181 11/05/13 500 CAROL YUKI 111 REFUND FACILITY 0.00 100.00 11111 124182 11/05/13 1150 CHARLES M. SALTER ASSOCI 1114102 NOISE ELEMENT UPDATE 0.00 6,120.00 11111 124183 11/05/13 176 CIENEGA LANDSCAPING 2465302 GREENBRIAR PLANTS 0.00 780.12 11111 124183 11/05/13 176 CIENEGA LANDSCAPING 1115301 KEVIN MORAN PLANTS 0.00 1,455.57 11111 124183 11/05/13 176 CIENEGA LANDSCAPING 1115301 OCT KEVIN MORAN PARK 0.00 275.00 11111 124183 11/05/13 176 CIENEGA LANDSCAPING 1115301 OCT CONGRESS SPRINGS 0.00 400.00 11111 124183 11/05/13 176 CIENEGA LANDSCAPING 2785302 OCT BROOKGLEN 0.00 50.00 11111 124183 11/05/13 176 CIENEGA LANDSCAPING 2465302 OCT GREENBRIAR AZULE 0.00 135.00 11111 124183 11/05/13 176 CIENEGA LANDSCAPING 2465302 OCTGREENBRIAR SEAGULL 0.00 95.00 11111 124183 11/05/13 176 CIENEGA LANDSCAPING 2755302 OCT QUITO LLA 0.00 75.00 11111 124183 11/05/13 176 CIENEGA LANDSCAPING 1115301 OCT AZULE PARK 0.00 395.00 TOTAL CHECK 0.00 3,660.69 11111 124184 11/05/13 179 CIM AIR, INC 6246202 HVAC PM SERVICES 0.00 1,740.00 11111 124185 11/05/13 188 CITY OF CAMPBELL 1115103 JPA DUES FY13 /14 0.00 32,695.00 11111 124186 11/05/13 229 COAST OIL COMPANY LLC 6235202 UNLEADED FUEL 0.00 1,807.73 29 SUNGARD PUBLIC SECTOR PAGE NUMBER: DATE: 11/05/2013 CITY OF SARATOGA ACCTPA21 TIME: 15:12:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131105 00:00:00.000' ACCOUNTING PERIOD: 5/14 30 2 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 124187 11/05/13 1023 CONTRACT SWEEPING SERVIC 1115103 OCT STREET SWEEP 0.00 13,239.50 11111 124188 11/05/13 500 DAN DANG Ill ARB08 -0086 0.00 670.00 11111 124188 11/05/13 500 DAN DANG ill GEO10 -0014 0.00 1,063.44 TOTAL CHECK 0.00 1,733.44 11111 124189 11/05/13 342 DATA TICKET INC 1117101 CITATION FEES -9/13 0.00 100.00 11111 124190 11/05/13 211 DEEP CLIFF GOLF COURSE 1116101 INSTRUCTOR -GOLF 0.00 1,632.00 11111 124190 11/05/13 211 DEEP CLIFF GOLF COURSE 1116101 INSTRUCTOR -GOLF 0.00 326.40 11111 124190 11/05/13 211 DEEP CLIFF GOLF COURSE 1116101 INSTRUCTOR -GOLF 0.00 166.40 11111 124190 11/05/13 211 DEEP CLIFF GOLF COURSE 1116101 INSTRUCTOR -GOLF 0.00 444.80 TOTAL CHECK 0.00 2,569.60 11111 124191 11/05/13 1 DEPARTMENT OF REVENUE 1117101 PARKING CIT 10/13 0.00 337.50 11111 124192 11/05/13 500 DIVYA AND RAJ DOSHI 1114101 TRP13 -0310 0.00 125.00 11111 124193 11/05/13 378 EKIM PAINTING - NORTH, I 6246202 PAINT CY FUEL ISLAND 0.00 1,700.00 11111 124194 11/05/13 416 EVANS WEST VALLEY SPRAY 1115301 INSECT /FUNGI MAINT 0.00 250.00 11111 124194 11/05/13 416 EVANS WEST VALLEY SPRAY 1115301 BEE HIVE 0.00 350.00 TOTAL CHECK 0.00 600.00 11111 124195 11/05/13 419 EVENT SERVICES 1115301 PROSPECT PORTA -POTTY 0.00 304.50 11111 124196 11/05/13 421 EWING IRRIGATION 1115301 AZULE PARK IRRIGATION 0.00 146.06 11111 124196 11/05/13 421 EWING IRRIGATION 1115301 CONG SPRINGS IRRIG 0.00 31.48 11111 124196 11/05/13 421 EWING IRRIGATION 1115301 QUITO PRK IRRIGATION 0.00 9.67 TOTAL CHECK 0.00 187.21 11111 124197 11/05/13 500 FIROZEH & NADER VASSEGHI 1114101 TRP13 -0316 0.00 125.00 11111 124198 11/05/13 500 GABRIELA MEJIA ill REFUND FACILITY 0.00 215.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2435302 OCT CARNELIAN GLEN 0.00 68.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2445302 OCT CUNNINGHAM /GLAS 0.00 135.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2455302 OCT FREDRICKSBURG 0.00 102.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2735302 OCT GATEWAY 0.00 102.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2475302 OCT KERWIN 0.00 270.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 1115301 OCT DWNTWN NEWSPAPER 0.00 68.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2525302 OCT PRIDES CROSSING 0.00 405.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2555302 OCT TRICIA WOODS 0.00 34.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2715302 OCT BEAUCHAMPS LLA 0.00 68.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 1115301 OCT DOWNTOWN 0.00 126.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2765302 OCT TOLLGATE 0.00 80.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2485302 OCT LEUTAR CT 0.00 75.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2415302 OCT ARROYO DE SARA 0.00 68.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 1115301 OCT AUSTIN MAINT 0.00 167.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 1115301 MULCH AT LIBRARY 0.00 600.00 11111 124200 11/05/13 454 GACHINA LANDSCAPE MANAGE 2475302 MULCH AT KERWIN 0.00 1,200.00 30 2 SUNGARD PUBLIC SECTOR PAGE NUMBER: 3 DATE: 11/05/2013 CITY OF SARATOGA ACCTPA21 TIME: 15:12:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131105 00:00:00.000' ACCOUNTING PERIOD: 5/14 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT 11111 124200 11/05/13 454 11111 124200 11/05/13 454 11111 124200 11/05/13 454 11111 124200 11/05/13 454 11111 124200 11/05/13 454 11111 124200 11/05/13 454 11111 124200 11/05/13 454 TOTAL CHECK INC 1116101 11111 124201 11/05/13 1167 11111 124202 11/05/13 455 11111 124203 11/05/13 488 11111 124204 11/05/13 14 11111 124205 11/05/13 19 11111 124205 11/05/13 19 TOTAL CHECK 0.00 78.00 11111 124206 11/05/13 326 11111 124207 11/05/13 118 11111 124207 11/05/13 118 11111 124207 11/05/13 118 TOTAL CHECK 0.00 6,514.20 11111 124208 11/05/13 221 11111 124208 11/05/13 221 11111 124208 11/05/13 221 11111 124208 11/05/13 221 11111 124208 11/05/13 221 TOTAL CHECK 11111 124209 11/05/13 996 11111 124210 11/05/13 328 11111 124211 11/05/13 1164 11111 124211 11/05/13 1164 TOTAL CHECK 11111 124212 11/05/13 83 11111 124212 11/05/13 83 11111 124212 11/05/13 83 11111 124212 11/05/13 83 11111 124212 11/05/13 83 11111 124212 11/05/13 83 11111 124212 11/05/13 83 11111 124212 11/05/13 83 TOTAL CHECK VENDOR - - -- --- - - - - -- BUDGET UNIT GACHINA LANDSCAPE MANAGE 1115301 GACHINA LANDSCAPE MANAGE 1115301 GACHINA LANDSCAPE MANAGE 1115301 GACHINA LANDSCAPE MANAGE 1115301 GACHINA LANDSCAPE MANAGE 1115301 GACHINA LANDSCAPE MANAGE 1115301 GACHINA LANDSCAPE MANAGE 1115301 GAEL GALLAGHER TOURS 1116101 GARDENLAND POWER EQUIPME 1115301 HOME DEPOT CREDIT SERVIC 1115301 HYDROTEC IRRIGATION EQUI 2475302 IAN GEDDES TREE CARE, IN 1115301 IAN GEDDES TREE CARE, IN 1115301 JANIS JEFFERS /PONY EXPRE 1115301 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 JUST FOR KICKS 1116101 LORAL LANDSCAPING, INC 2515302 LORAL LANDSCAPING, INC 2545302 LORAL LANDSCAPING, INC 2495302 LORAL LANDSCAPING, INC 2725302 LORAL LANDSCAPING, INC 2745302 MEGAPATH 6223201 METROPOLITAN PLANNING GR 1114102 MOUSER LAW FIRM 1113301 MOUSER LAW FIRM 1113301 MUSICAL ME, INC 1116101 MUSICAL ME, INC 1116101 MUSICAL ME, INC 1116101 MUSICAL ME, INC 1116101 MUSICAL ME, INC 1116101 MUSICAL ME, INC 1116101 MUSICAL ME, INC 1116101 MUSICAL ME, INC 1116101 31 DESCRIPTION MULCH AT VERDE VISTA OCT GARDINER MAINT OCT BEAUCHAMPS MAINT OCT BLANEY MAINT OCT PARKING DIST MAIN OCT MEDIANS OCT LIBRARY GETAWAY TRIP 11/6/13 PARKS SUPPLIES PARKS SUPPLIES KERWIN RANCH FLOW MTR REMOVE TREE LIMBS PRUNE JAPANESE MAPLES T- SHIRTS PARKS DIV INSTRUCTOR- SOCCER INSTRUCTOR - SOCCER INSTRUCTOR - SOCCER OCT MCCARTYSVILLE OCT SUNLAND PARK OCT MANOR DR OCT BELLGROVE OCT HORSESHOE ISP SRVC 10/16 -11 /15 PROVIDE ILLUSTRATION EMPLOYMENT /LABOR LAW S EMPLOYMENT /LABOR LAW S INSTRUCTOR -MUSIC INSTRUCTOR -MUSIC INSTRUCTOR -MUSIC INSTRUCTOR -MUSIC INSTRUCTOR -MUSIC INSTRUCTOR -MUSIC INSTRUCTOR -MUSIC INSTRUCTOR -MUSIC SALES TAX AMOUNT 0.00 1,000.00 0.00 144.00 0.00 188.00 0.00 196.00 0.00 270.00 0.00 3,587.00 0.00 464.00 0.00 9,417.00 0.00 300.00 0.00 213.44 0.00 306.44 0.00 218.25 0.00 2,380.00 0.00 1,570.00 0.00 3,950.00 0.00 446.30 0.00 63.00 0.00 468.00 0.00 315.00 0.00 846.00 0.00 250.00 0.00 260.00 0.00 130.00 0.00 1,710.00 0.00 135.00 0.00 2,485.00 0.00 739.96 0.00 3,345.00 0.00 130.00 0.00 78.00 0.00 208.00 0.00 1,360.80 0.00 1,134.00 0.00 504.00 0.00 1,234.80 0.00 756.00 0.00 756.00 0.00 226.80 0.00 541.80 0.00 6,514.20 SUNGARD PUBLIC SECTOR PAGE NUMBER: DATE: 11/05/2013 CITY OF SARATOGA ACCTPA21 TIME: 15:12:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131105 00:00:00.000' ACCOUNTING PERIOD: 5/14 32 4 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 124213 11/05/13 500 NATE MUELLER 111 REFUND FACILITY 0.00 500.00 11111 124214 11/05/13 135 NORTH BAY BLDG MAINTENAN 6246202 JANITORIAL SERVICES 0.00 228.00 11111 124215 11/05/13 145 OFFICE DEPOT INC. 1115301 OFFICE SUPPLIES 0.00 68.46 11111 124215 11/05/13 145 OFFICE DEPOT INC. 1115201 OFFICE SUPPLIES 0.00 51.51 11111 124215 11/05/13 145 OFFICE DEPOT INC. 1114201 OFFICE SUPPLIES 0.00 1.40 11111 124215 11/05/13 145 OFFICE DEPOT INC. 1114101 OFFICE SUPPLIES 0.00 54.64 11111 124215 11/05/13 145 OFFICE DEPOT INC. 1114201 OFFICE SUPPLIES 0.00 89.71 11111 124215 11/05/13 145 OFFICE DEPOT INC. 1114201 OFFICE SUPPLIES 0.00 78.29 TOTAL CHECK 0.00 344.01 11111 124216 11/05/13 170 PACIFIC COAST SEED 1115301 LANDSCAPE SUPPLIES 0.00 2,283.75 11111 124217 11/05/13 610 PACIFIC DISPLAY, INC 4119111 -001 VILLAGE PED LIGHTS 0.00 720.00 11111 124218 11/05/13 173 PACIFIC GAS & ELECTRIC 1115301 PARKS /OPEN SPACE 0.00 9.57 11111 124218 11/05/13 173 PACIFIC GAS & ELECTRIC 2735302 GATEWAY SERVICE 0.00 69.59 TOTAL CHECK 0.00 79.16 11111 124219 11/05/13 1092 PALACE ART & OFFICE SUPP 6213102 OFFICE SUPPLIES 0.00 593.62 11111 124220 11/05/13 500 SAN JOSE WATER 111 ARB08 -0085 0.00 1,690.00 11111 124221 11/05/13 87 SAN JOSE WATER COMPANY 6246202 BUILDINGS 0.00 502.50 11111 124221 11/05/13 87 SAN JOSE WATER COMPANY 1115301 PARKS /OPEN SPACE 0.00 10,250.59 11111 124221 11/05/13 87 SAN JOSE WATER COMPANY 1115301 MEDIANS /PARKWAYS 0.00 1,253.19 11111 124221 11/05/13 87 SAN JOSE WATER COMPANY 2765302 TOLLGATE 0.00 52.30 TOTAL CHECK 0.00 12,058.58 11111 124222 11/05/13 500 SANTA CLARA COUNTY LIBRA 1115301 REIMB LIB FOR WTR SVC 0.00 575.00 11111 124222 11/05/13 500 SANTA CLARA COUNTY LIBRA 1115301 REIMB LIB FOR WTR SVC 0.00 2,678.48 TOTAL CHECK 0.00 3,253.48 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 190.44 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 143.87 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 191.82 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 383.64 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 222.53 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 356.04 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 383.64 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 383.64 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 191.82 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 95.91 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 178.02 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 671.37 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 671.37 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 671.37 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 383.64 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 191.82 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 95.91 32 4 SUNGARD PUBLIC SECTOR DATE: 11/05/2013 CITY OF SARATOGA TIME: 15:12:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131105 00:00:00.000' ACCOUNTING PERIOD: 5/14 PAGE NUMBER: 5 ACCTPA21 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 534.06 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 767.28 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 287.73 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 899.07 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 321.54 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 191.82 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 410.55 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 95.91 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 94.88 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 287.73 11111 124224 11/05/13 729 TERESA PHILLIPS 1116101 INSTRUCTOR -DANCE 0.00 648.60 TOTAL CHECK 0.00 9,946.02 11111 124225 11/05/13 69 SASCC 1116101 INSTRUCTOR -IPAD 0.00 283.50 11111 124226 11/05/13 136 SCOTTY'S AUTOMOTIVE 6235202 MAINTENANCE VEH 4122 0.00 312.08 11111 124226 11/05/13 136 SCOTTY'S AUTOMOTIVE 6235202 MAINTENANCE VEH #113 0.00 125.00 TOTAL CHECK 0.00 437.08 11111 124227 11/05/13 500 SHIRLEY JAY 111 REFUND FACILITY 0.00 300.00 11111 124228 11/05/13 500 SHRIVATS RAMASWAMI 1114101 TRP13 -0314 0.00 125.00 11111 124229 11/05/13 160 SIERRA PACIFIC TURF SUPP 1115301 FERTILIZER 0.00 1,351.65 11111 124229 11/05/13 160 SIERRA PACIFIC TURF SUPP 1115301 RYEGRASS 0.00 482.85 TOTAL CHECK 0.00 1,834.50 11111 124230 11/05/13 222 SKYHAWKS SPORTS ACADEMY 1116101 INSTRUCTOR -SPORT CAMP 0.00 237.60 11111 124231 11/05/13 1077 SUNNYVALE BUILDING MAINT 1115301 OCT MONDAY PRK MAINT 0.00 875.00 11111 124231 11/05/13 1077 SUNNYVALE BUILDING MAINT 1115301 OCT PICNIC TABLES 0.00 198.00 11111 124231 11/05/13 1077 SUNNYVALE BUILDING MAINT 1115301 OCT WEEKEND PRK MAINT 0.00 715.00 TOTAL CHECK 0.00 1,788.00 11111 124232 11/05/13 500 SUSHAMA THAKKER 1118302 BOLLYWOOD COM GRANT 0.00 942.27 11111 124233 11/05/13 500 SVDC 1118302 BOLLYWOOD COM GRANT 0.00 300.00 11111 124234 11/05/13 277 T.A.K.'S EQUIPMENT SALES 1115301 PARKS SUPPLIES 0.00 102.08 11111 124235 11/05/13 500 TERRY EVERSON 1116101 EXCURSION REFUND 0.00 562.00 11111 124236 11/05/13 1116 UNIVERSAL SITE SERVICES 1115301 PRESSUREWASH SIDEWALK 0.00 1,020.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 134.85 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 69.21 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 0.00 148.51 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113301 GFOA JOB POSTING 0.00 150.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113301 LINKED IN -JOB POSTING 0.00 395.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113301 ORAL BOARD 0.00 37.42 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113301 HARASS PREVENT TRAIN 0.00 33.60 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113101 GFOA ANNUAL GAAP UPDT 0.00 135.00 33 SUNGARD PUBLIC SECTOR PAGE NUMBER: DATE: 11/05/2013 CITY OF SARATOGA ACCTPA21 TIME: 15:12:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131105 00:00:00.000' ACCOUNTING PERIOD: 5/14 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113101 CALPERS CONE KAREN 0.00 325.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113101 CALPERS CONE GINA 0.00 325.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113101 LEAGUE OF /CITIES -MARY 0.00 350.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113101 LCC AIRFARE 0.00 177.80 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1113101 CSMFO AIRFARE 0.00 169.80 11111 124240 11/05/13 391 US BANK PURCHASING CARD 4139322 -001 CD PLAYER /RECORDER 0.00 365.97 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1115201 OFFICE SUPPLIES 0.00 10.08 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6223201 LASERFICHE CONF 0.00 495.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6223201 MOZYPRO ONLINE BACKUP 0.00 131.95 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6223201 SURGE PROTECTOR 0.00 8.71 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6223201 CABLE 0.00 20.43 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 ONLINE SSL CERT 0.00 324.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 ABAG CLAIM ADJUST MTG 0.00 25.69 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116201 REC CONE ROOM SUP 0.00 104.40 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 PLUG & PAY 0.00 15.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 PLUG & PAY 0.00 15.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1118201 INT'L CODE COUNCIL 0.00 1,410.64 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1114101 SHIPPING CHARGES 0.00 13.29 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111101 POLES FOR BANNERS 0.00 1,694.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 GREAT GETAWAY SUP 0.00 19.41 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 GREAT GETAWAY SUP 0.00 28.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 OFFICE SUPPLIES 0.00 26.63 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 EMAIL CAMPAIGN 0.00 85.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 GREAT GETAWAY SJ TOUR 0.00 75.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 GREAT GETAWAY LUNCH 0.00 728.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 GREAT GETAWAY SUP 0.00 9.07 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111201 YOUTH COM MEETING 0.00 4.30 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 GREAT GETAWAY TICKETS 0.00 536.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1116101 GREAT GETAWAY TICKETS 0.00 537.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1118101 VIDEO CAM & EQUIP 0.00 1,065.95 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1118101 VIDEO EQUIPMENT 0.00 58.93 11111 124240 11/05/13 391 US BANK PURCHASING CARD 2755302 ALCON LIGHTING 0.00 414.33 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1115301 PEST MEMBER - DEPAREDES 0.00 45.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1115301 PARKS SUPPLIES 0.00 30.42 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1112201 NATIONAL NOTARY ASSOC 0.00 59.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1114101 WESTERN CHAP CONE 0.00 90.75 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111201 PC STUDY SESSION 0.00 71.49 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111201 PC STUDY SESSION 0.00 5.41 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111201 INT'L SOC ARBOR DUES 0.00 165.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111201 PC STUDY SESSION 0.00 10.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111201 STUDY SESSION 0.00 72.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1114201 CALBO TRAINING 0.00 119.97 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1112101 OFFICE SUPPLIES 0.00 19.57 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1112201 OFFICE SUPPLIES 0.00 447.21 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111101 COUNCIL TRAINING 0.00 50.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111101 COUNCIL MEETING 0.00 46.30 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111101 COUNCIL MEETING 0.00 369.25 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111101 MAYOR MEETING 0.00 52.50 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111101 OFFICE SUPPLIES 0.00 6.50 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1112101 MANAGEMENT TRAINING 0.00 25.00 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111101 COUNCIL MEETING 0.00 20.97 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111101 COUNCIL MEETING 0.00 310.00 34 SUNGARD PUBLIC SECTOR DATE: 11/05/2013 TIME: 15:12:06 CITY OF SARATOGA CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131105 00:00:00.000' ACCOUNTING PERIOD: 5/14 FUND - 009 - DISBURSEMENT FUND 402 11111 124241 11/05/13 402 11111 CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT ----- DESCRIPTION - - -- 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1112101 LASERFICHE TRAINING 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1112101 OFFICE SUPPLIES 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1115201 OFFICE SUPPLIES 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1115201 SUPPLIES 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1115201 TOOLS 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1115201 SUPPLIES 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 11111 124240 11/05/13 391 US BANK PURCHASING CARD 6246202 FACILITIES SUPPLIES 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1114101 SV LEADERSHIP GROUP 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1114201 ICC DUES 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1114201 TRAVEL - TRAKIT TRNING 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111201 PC STUDY SESSION 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111201 PC STUDY SESSION 11111 124240 11/05/13 391 US BANK PURCHASING CARD 1111101 MAYOR MEETING TOTAL CHECK 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 11111 124241 11/05/13 402 TOTAL CHECK 11111 124242 11/05/13 993 11111 124242 11/05/13 993 TOTAL CHECK 11111 124243 11/05/13 901 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 4329213 -001 VISTA LANDSCAPE & MAINTE 2425302 VISTA LANDSCAPE & MAINTE 2425302 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 2535302 VISTA LANDSCAPE & MAINTE 2535302 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1115301 VISTA LANDSCAPE & MAINTE 1116201 VIVIAN LIU 1116101 VIVIAN LIU 1116101 WAXIE SANITARY SUPPLY 6246202 35 SOLENOID AT PROSPECT 4TH ST POLE REPAIR IRR RPR AT CIVIC CTR BENDER BRD INSTALL GRASS AT PRESCHOOL PLANTS AT PROSP CTR PROSP CTR LANDSCAPE ASSEMBLE PARK TABLES OCT BONNET WAY SEPT BONNET WAY SEPTDOWNTOWN GARB CAN OCTDOWNTOWN GARB CANS OCT LEGENDS LLA SEPT LEGENDS LLA SEPT FOOTHILL PARK OCT FOOTHILL PARK OCT HISTORICAL PARK SEPT HISTORICAL PARK SEPT CIVIC CENTER OCT CIVIC CENTER OCT PROSPECT CENTER SEPT PROSPECT CENTER SEPT RAVENWOOD PARK OCT RAVENWOOD PARK OCT EL QUITO PARK SEPT EL QUITO PARK STORAGE BOX INSTRUCTOR -TAI CHI INSTRUCTOR -TAI CHI FACILITIES SUPPLIES - SALES TAX 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 PAGE NUMBER: ACCTPA21 AMOUNT 167.80 54.95 15.79 32.61 61.56 45.10 26.64 14.50 21.17 47.77 50.00 125.00 193.80 15.97 113.42 31.00 13,706.39 192.00 270.00 100.00 360.00 2,210.00 668.75 1,265.00 1,680.00 85.00 85.00 85.00 85.00 165.00 165.00 108.00 108.00 175.00 175.00 755.00 755.00 433.00 433.00 85.00 85.00 162.00 162.00 1, 980.00 12,831.75 0.00 270.50 0.00 572.50 0.00 843.00 0.00 1,918.47 7 SUNGARD PUBLIC SECTOR PAGE NUMBER: DATE: 11/05/2013 CITY OF SARATOGA ACCTPA21 TIME: 15:12:06 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131105 00:00:00.000' ACCOUNTING PERIOD: 5/14 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT -------- - - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT 11111 124244 11/05/13 432 WEST VALLEY COLLECTIONS 1115301 CONGRESS SPRING BIN 0.00 325.00 11111 124245 11/05/13 902 WEST VALLEY TRAILWAYS 1116101 EXCURSION 10/2/13 0.00 1,075.00 11111 124245 11/05/13 902 WEST VALLEY TRAILWAYS 1116101 EXCURSION 10/24/13 0.00 1,300.00 11111 124245 11/05/13 902 WEST VALLEY TRAILWAYS 1116101 EXCURSION 11/6/13 0.00 1,200.00 TOTAL CHECK 0.00 3,575.00 11111 124246 11/05/13 441 WHITLINGER, JOHN 1116101 INSTRUCTOR- TENNIS 0.00 238.08 11111 124246 11/05/13 441 WHITLINGER, JOHN 1116101 INSTRUCTOR - TENNIS 0.00 297.60 11111 124246 11/05/13 441 WHITLINGER, JOHN 1116101 INSTRUCTOR - TENNIS 0.00 238.08 11111 124246 11/05/13 441 WHITLINGER, JOHN 1116101 INSTRUCTOR - TENNIS 0.00 291.40 11111 124246 11/05/13 441 WHITLINGER, JOHN 1116101 INSTRUCTOR - TENNIS 0.00 238.08 11111 124246 11/05/13 441 WHITLINGER, JOHN 1116101 INSTRUCTOR - TENNIS 0.00 238.08 11111 124246 11/05/13 441 WHITLINGER, JOHN 1116101 INSTRUCTOR - TENNIS 0.00 357.12 TOTAL CHECK 0.00 1,898.44 11111 124247 11/05/13 1127 YANG YANG LYON 1116101 INSTRUCTOR -DANCE 0.00 176.25 11111 124247 11/05/13 1127 YANG YANG LYON 1116101 INSTRUCTOR -DANCE 0.00 445.50 TOTAL CHECK 0.00 621.75 TOTAL CASH ACCOUNT 0.00 174,793.89 TOTAL FUND 0.00 174,793.89 TOTAL REPORT 0.00 174,793.89 36 8 SUNGARD PUBLIC SECTOR PAGE NUMBER: 1 DATE: 11/13/2013 CITY OF SARATOGA ACCTPA21 TIME: 12:36:02 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131113 00:00:00.000' ACCOUNTING PERIOD: 5/14 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT - - - - -- 11111 124248 11/13/13 935 11111 124248 11/13/13 935 TOTAL CHECK OFFICE DEPOT 11111 124249 11/13/13 517 11111 124250 11/13/13 500 11111 124251 11/13/13 1180 11111 124252 11/13/13 504 11111 124252 11/13/13 504 TOTAL CHECK TRAFFIC SIGNALS PACIFIC 11111 124253 11/13/13 455 11111 124253 11/13/13 455 TOTAL CHECK GAS & ELECTRIC 11111 124254 11/13/13 1177 11111 124255 11/13/13 1163 11111 124256 11/13/13 63 11111 124257 11/13/13 100 11111 124257 11/13/13 100 TOTAL CHECK 11111 124258 11/13/13 283 11111 124259 11/13/13 500 11111 124260 11/13/13 499 11111 124261 11/13/13 135 11111 124261 11/13/13 135 TOTAL CHECK 11111 124262 11/13/13 145 11111 124262 11/13/13 145 11111 124262 11/13/13 145 11111 124262 11/13/13 145 TOTAL CHECK 11111 124263 11/13/13 540 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT CHRISP COMPANY 411 CHRISP COMPANY 4119111 -001 CITY OF SAN JOSE 1117101 CONTINUING EDU FOR PUBLI 1112201 D &M TRAFFIC SERVICES, IN 4119111 -001 FOSSATI, MICHAEL 1114101 FOSSATI, MICHAEL 1114101 GARDENLAND POWER EQUIPME 1115201 GARDENLAND POWER EQUIPME 1115201 IDEAL SOUND, INC. 4139322 -009 INSIGHT PUBLIC SECTOR, I 6323202 INTERSTATE TRAFFIC CONTR 4119111 -001 KSAR 111 KSAR 111 MARTIN, JIM 111 MICHELLE CRUZ 111 CARPENTERS LOCAL 2236 (M 111 NORTH BAY BLDG MAINTENAN 6246202 NORTH BAY BLDG MAINTENAN 6246202 - - - -- DESCRIPTION - - - - -- SALES TAX RETENTION HELD 20#31 0.00 CITY WIDE TRAFFIC SIGN 0.00 ANIMAL SVC 11/13 CEPO TRAINING STREETS SUPPLIES TRAK IT TRAINING TRAK IT TRAINING SMALL EQUIPMENT SMALL TOOLS LOOP SYSTEM - THEATER COMPUTER BATTERIES STREETS SUPPLIES COMCAST FEE THRU 9/30 AT &T PEG FEE 7/1 -9/30 MED REIMB SEPT -NOV REFUND FACILITY DED:3000 DUES JANITORIAL SERVICES JANITORIAL SERVICES OFFICE DEPOT INC. 1118101 OFFICE SUPPLIES OFFICE DEPOT INC. 1115101 OFFICE SUPPLIES OFFICE DEPOT INC. 1114201 OFFICE SUPPLIES OFFICE DEPOT INC. 1114101 OFFICE SUPPLIES ORCHARD SUPPLY 6246202 FACILITIES SUPPLIES PACIFIC GAS & ELECTRIC 6246202 BUILDINGS PACIFIC GAS & ELECTRIC 1115201 TRAFFIC SIGNALS PACIFIC GAS & ELECTRIC 1115301 PARKS /OPEN SPACE PACIFIC GAS & ELECTRIC 2315302 VILLAGE LIGHTING PACIFIC GAS & ELECTRIC 2325302 AZULE LIGHTING PACIFIC GAS & ELECTRIC 2335302 SARAHILLS LIGHTING 37 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 AMOUNT - 1,082.50 21,650.00 20,567.50 15,013.70 2,670.00 180.80 110.32 119.91 230.23 497.00 116.82 613.82 5,000.00 2,229.70 789.53 16,259.87 3,606.24 19,866.11 600.00 500.00 330.00 323.00 342.00 665.00 77.22 37.96 48.07 11.38 174.63 73.75 7,808.86 1,156.61 740.54 2,419.43 244.56 256.36 SUNGARD PUBLIC SECTOR PAGE NUMBER: 2 DATE: 11/13/2013 CITY OF SARATOGA ACCTPA21 TIME: 12:36:02 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131113 00:00:00.000' ACCOUNTING PERIOD: 5/14 FUND - 009 - DISBURSEMENT FUND CASH ACCT CHECK NO ISSUE DT 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 11111 124264 11/13/13 173 TOTAL CHECK QUITO LIGHTING PACIFIC 11111 124265 11/13/13 173 11111 124265 11/13/13 173 TOTAL CHECK GAS & ELECTRIC 11111 124266 11/13/13 1092 11111 124267 11/13/13 388 11111 124268 11/13/13 55 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 11111 124269 11/13/13 87 TOTAL CHECK 11111 124270 11/13/13 91 11111 124271 11/13/13 124 11111 124272 11/13/13 136 11111 124273 11/13/13 154 11111 124273 11/13/13 154 11111 124273 11/13/13 154 11111 124273 11/13/13 154 11111 124273 11/13/13 154 11111 124273 11/13/13 154 11111 124273 11/13/13 154 11111 124273 11/13/13 154 11111 124273 11/13/13 154 11111 124273 11/13/13 154 VENDOR - - -- --- - - - - -- BUDGET UNIT DESCRIPTION PACIFIC GAS & ELECTRIC 2515302 MCCARTYSVILLE PACIFIC GAS & ELECTRIC 2525302 PRIDES CROSSING PACIFIC GAS & ELECTRIC 2555302 TRICIA WOODS PACIFIC GAS & ELECTRIC 2715302 BEAUCHAMPS PACIFIC GAS & ELECTRIC 2725302 BELLGROVE CIRCLE PACIFIC GAS & ELECTRIC 2745302 HORSESHOE DR PACIFIC GAS & ELECTRIC 2755302 QUITO LIGHTING PACIFIC GAS & ELECTRIC 1115201 CITYWIDE ST LIGHTS PACIFIC GAS & ELECTRIC 1115201 CITY WIDE ST LIGHTS PACIFIC GAS & ELECTRIC 2315302 VILLAGE LIGHTING PALACE ART & OFFICE SUPP 1112101 RATRA, RICK 6235202 ROSS RECREATION EQUIPMEN 4329213 -001 SAN JOSE WATER COMPANY 6246202 SAN JOSE WATER COMPANY 1115301 SAN JOSE WATER COMPANY 2495302 SAN JOSE WATER COMPANY 2555302 SAN JOSE WATER COMPANY 2715302 SAN JOSE WATER COMPANY 2545302 SAN JOSE WATER COMPANY 2775302 SAN JOSE WATER COMPANY 2535302 SAN JOSE WATER COMPANY 2445302 SAN JOSE WATER COMPANY 2475302 SAN JOSE WATER COMPANY 2745302 SAN JOSE WATER COMPANY 2435302 SAN JOSE WATER COMPANY 1115301 SAN JOSE WATER COMPANY 1115301 SANTA CLARA VALLEY TRANS 1115101 SCHWAAB INC 1112101 SCOTTY'S AUTOMOTIVE 6235202 SHUTE MIHALY & WEINBERGE 1118201 SHUTE MIHALY & WEINBERGE 4119152 -002 SHUTE MIHALY & WEINBERGE 1114101 SHUTE MIHALY & WEINBERGE 1118201 SHUTE MIHALY & WEINBERGE 1118201 SHUTE MIHALY & WEINBERGE 1118201 SHUTE MIHALY & WEINBERGE 1118201 SHUTE MIHALY & WEINBERGE 1118201 SHUTE MIHALY & WEINBERGE 1118201 SHUTE MIHALY & WEINBERGE 1118201 01 OFFICE SUPPLIES PROPANE HISTORICAL PRK BENCH BUILDINGS PARKS /OPEN SPACE MANOR DRIVE TRICIA WOODS 22.50 BEAUCHAMPS SUNLAND PARK VILLAGE COMMERCIAL SARA LEGENDS MINA WY CUNNINGHAM /GLAS 77.5% KERWIN RANCH 90% HORSESHOE 80% CARNELIAN GLEN 20% MEDIANS /PARKWAYS PARKS / KERWIN 10% FY 2014 CMP MEM FEES OFFICE SUPPLIES MAINTENANCE VEH #108 DEFEND CITY QUITO RD BRIDGES REIMB WORK (WIT) OUTSIDE COUNSEL CTY ATTN COM DEV CTY ATTN COUNCIL MTG CTY ATTN PUB WORKS CTY ATTN CITY CLERK CTY ATTN CITY MANAGER CTY ATTN WESTLAW SALES TAX AMOUNT 0.00 19.27 0.00 24.56 0.00 9.53 0.00 55.75 0.00 541.06 0.00 9.62 0.00 806.15 0.00 1,143.12 0.00 15,235.42 0.00 15.95 0.00 501.13 0.00 517.08 0.00 109.25 0.00 75.78 0.00 6,061.56 0.00 206.03 0.00 3,117.80 0.00 126.68 0.00 13.60 0.00 273.80 0.00 423.32 0.00 1,250.26 0.00 525.36 0.00 46.83 0.00 644.54 0.00 313.42 0.00 78.35 0.00 2,748.52 0.00 71.61 0.00 9,840.12 0.00 21,691.27 0.00 51.71 0.00 104.27 0.00 6,857.06 0.00 1,785.80 0.00 26.50 0.00 1,600.56 0.00 1,177.40 0.00 2,618.70 0.00 406.00 0.00 1,786.40 0.00 2,192.40 0.00 82.91 SUNGARD PUBLIC SECTOR DATE: 11/13/2013 CITY OF SARATOGA TIME: 12:36:02 CHECK REGISTER - DISBURSEMENT FUND SELECTION CRITERIA: transact.ck_date= '20131113 00:00:00.000' ACCOUNTING PERIOD: 5/14 FUND - 009 - CASH ACCT CHECK NO 11111 124273 11111 124273 11111 124273 11111 124273 TOTAL CHECK 11111 124274 11111 124275 11111 124275 TOTAL CHECK 11111 124276 11111 124277 11111 124278 TOTAL CASH ACCOUNT TOTAL FUND TOTAL REPORT DISBURSEMENT FUND ISSUE DT - - - - -- 11/13/13 154 11/13/13 154 11/13/13 154 11/13/13 154 11/13/13 500 11/13/13 726 11/13/13 726 11/13/13 901 11/13/13 981 11/13/13 500 PAGE NUMBER: 3 ACCTPA21 - - - -- VENDOR - - -- --- - - - - -- BUDGET UNIT - - - -- DESCRIPTION - - - - -- SALES TAX AMOUNT SHUTE MIHALY & WEINBERGE 1118201 CTY ATTN CODE ENFORCE 0.00 1,887.90 SHUTE MIHALY & WEINBERGE 1118201 CTY ATTN REIMB EXP 0.00 25.60 SHUTE MIHALY & WEINBERGE 1118201 CTY ATTN REC /RISK MGT 0.00 20.30 SHUTE MIHALY & WEINBERGE 1118201 GEN LGL CITY MANAGER 0.00 343.20 0.00 20,810.73 SUSAN MCCHESNEY 1116101 CLASS REFUND 0.00 97.00 TREES 360 DEGREES 1115301 TREE WRK CONGRESS SPR 0.00 1,400.00 TREES 360 DEGREES 2725302 TREE MAINT BELLGROVE 0.00 600.00 0.00 2,000.00 WAXIE SANITARY SUPPLY 6246202 JANITORIAL SUPPLIES 0.00 473.36 WHITE CAP CONSTRUCTION S 1115201 STREETS SUPPLIES 0.00 68.83 YING QIN 1114101 RPLC CHK #123961 0.00 125.00 0.00 146,766.15 0.00 146,766.15 0.00 146,766.15 39 SARATOGA CITY COUNCIL o Ijr0fL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Mary Furey DIRECTOR: Mary Furey SUBJECT: Development Impact Fee Report RECOMMENDED ACTION Review and accept the annual AB1600 Development Impact Fee report for the year ended June 30, 2013. BACKGROUND As set forth in California Government Code Section 66000 - 66025, known as the Mitigation Fee Act, agencies which impose a fee as a condition of approval for a development project are required to account for and report on the use of the fees within 180 days of fiscal year -end. Development impact fees are defined as a fee charged to compensate for demands on public resources resulting from the development of land and property and imposed as a condition of development approval. Saratoga has established two of these fees: the Park -In -Lieu Development Fee and the Road Impact Fee. REPORT SUMMARY As required under AB 1600 accounting guidelines, this report provides: 1. A brief description of the type of fee; 2. The amount of the fee; 3. Beginning and ending balances of the fees; 4. Total fees collected and the interest earned, if applicable; 5. Identification of the public improvement the fees were used for; 6. Identification and timeline of public improvements any unexpended fees will be used for; 7. Description and uses for transfers or loans of fees, if applicable. The legislature finds and declares that the timely and proper allocation of development fees promote economic growth and is, therefore, a matter of statewide interest and concern. Park -In -Lieu Development Fees Under Saratoga's Municipal Code 14- 28.080, as a condition of approval, a sub - divider /owner shall either dedicate a portion of land or pay a fee in lieu thereof, or a combination of both at the option of the City, for the purpose of providing park or recreational facilities for each new parcel. Five acres of parkland per 1,000 residents is the standard promulgated by the National Recreation and Parks Association and is a common metric utilized by other communities in California to measure .x adequacy of parkland. Saratoga's 2007 Update to the Open Space and Conservation Element of the City's General Plan recognized that additional parkland must be protected and adopted this goal to provide at least five acres of parkland per 1,000 residents to maintain the City's existing character as a small town community surrounded by rural and open space. In support of this goal, the City established a Park -In -Lieu fee of $20,700 per new parcel to provide funding for increased usage and additional park requirements brought on by the new development within the City. The Park -In -Lieu Development Fee of $20,700 per subdivided parcel is calculated based upon the following formula: (2.76 people per household) X (5 acres per 1,000 residents) X ($1.5 million per acre) The table below summarizes the activity for the Park -In -Lieu Development Fees collected over the last five years, and utilized as of June 30, 2013. Remaining Park -In -Lieu Fees are re- budgeted into the assigned capital project for use in the next fiscal year, as shown in the far -right gray- shaded column: Beginning balance Sources: Park -In -Lieu Fees Funds from closed projects Uses: Hakone Gardens Master Plan Ravenswood Playground Equip Historic Park Landscaping Park RestroomImprovements Wildwood Park Bridge Rehab Remaining Available Funds: The $393,300 of Park -In -Lieu Fee revenue received in FY 2010/11 was committed to four capital improvement projects after funding the $8,202 prior year's outstanding balance remaining from the West Valley College Soccer Field capital project. As of June 30, 2013, remaining funds include $250,000 for the Hakone Gardens Master Plan and $39,929 for Park Restroom Improvements. New funding received in FY 2012/13 and budgeted funding in FY 2013/14 will be applied toward the Wildwood Park Bridge Rehabilitation project. Future Park -In -Lieu impact fees will be applied to park improvement projects as directed by Council under the Capital Improvement Project budget process. Road Impact Fees In May of 2008, the City Council authorized the establishment and collection of a Road Impact Fee (effective July 1, 2008) to offset the additional cost of street maintenance incurred as a result of damage to the city's roadways caused by heavy construction vehicles on public roads from new development. The fee is based on a 2006 study by CSG consultants, commissioned by the cities of Saratoga, Monte Sereno, Campbell, and Los Gatos, which determined the impact of construction vehicles on streets and roads, and an appropriate fee to mitigate the costs of damage or deterioration in pavement. CSG Consultants determined that a fee of $0.77 per $100 of building valuation was a fair assessment of the 41 Budgeted Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 $ (70,577) $ (29,177) $ (8,202) $ 373,216 $ 309,676 $ 393,660 41,400 20,700 393,300 - 103,500 21,269 - 275 - - 231 - - - - - - 250,000 - - 9,374 63,540 2,086 - - - 2,509 - - - - - - 17,660 39,929 - - - 125,000 $ (29,177) $ (8,202) $ 373,216 $ 309,676 $ 393,660 $ - The $393,300 of Park -In -Lieu Fee revenue received in FY 2010/11 was committed to four capital improvement projects after funding the $8,202 prior year's outstanding balance remaining from the West Valley College Soccer Field capital project. As of June 30, 2013, remaining funds include $250,000 for the Hakone Gardens Master Plan and $39,929 for Park Restroom Improvements. New funding received in FY 2012/13 and budgeted funding in FY 2013/14 will be applied toward the Wildwood Park Bridge Rehabilitation project. Future Park -In -Lieu impact fees will be applied to park improvement projects as directed by Council under the Capital Improvement Project budget process. Road Impact Fees In May of 2008, the City Council authorized the establishment and collection of a Road Impact Fee (effective July 1, 2008) to offset the additional cost of street maintenance incurred as a result of damage to the city's roadways caused by heavy construction vehicles on public roads from new development. The fee is based on a 2006 study by CSG consultants, commissioned by the cities of Saratoga, Monte Sereno, Campbell, and Los Gatos, which determined the impact of construction vehicles on streets and roads, and an appropriate fee to mitigate the costs of damage or deterioration in pavement. CSG Consultants determined that a fee of $0.77 per $100 of building valuation was a fair assessment of the 41 impact from construction related vehicles on Saratoga's streets. Road Impact Fees are assessed and collected at the time building permits are issued for development. Road Impact Fee revenues are appropriated directly to the Capital Improvement Plan's Street Improvement Fund, specifically into the Street Resurfacing and the Striping & Signage projects and used to pay for increased street resurfacing and maintenance costs. The following table summarizes the Road Impact Fees collected and utilized as of June 30, 2013: Beginning balance Sources: Road Impact Fees Uses: CIP Street Resurfacing CIP Street Striping & Signage Remaining Available Funds: Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2008/09 2009/10 2010/11 2011/12 2012/13 298,846 404,035 402,854 478,891 570,208 233,846 329,035 252,854 353,891 523,773 65,000 75,000 150,000 125,000 46,435 The above Road Impact Development Fee schedule does not include road impact fees collected under the West Valley Solid Waste Management Authority (WVSWMA) contract with the City's solid waste contractor. The WVSWMA road impact fees are collected to offset costs for damage to the City's roadways caused by the heavy vehicles used in the collection of solid waste. AB 1600 reporting requirements are limited to fees in connection with the approval of development projects. Development based road impact fees were discontinued effective July 1, 2013 therefore a FY 2013/14 budget year is not included. As all road impact fees were utilized as of June 30, 2013, this AB 1600 fee section will not be included in future year's reports. FISCAL IMPACTS: AB 1600 fees do not impact the General Fund as revenues are remitted directly to Capital Project Funds and utilized for capital projects directly from these capital funds within the current or following budget year. City of Saratoga follows the State requirement that development impact fees be used or appropriated to a specific project within 5 years for a specified purpose, or returned to the developer /payee. CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The City would not be in compliance with California requirements. ALTERNATIVE ACTION: N/A FOLLOW UP ACTION: N/A 42 ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: N/A 43 v SARATOGA CITY COUNCIL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: Community Development, CITY MANAGER: Dave Anderson Public Works PREPARED BY: Kate Bear, City Arborist DIRECTOR: John Cherbone SUBJECT: Ordinance Amending City Code 15- 50.040 (Tree Regulations — Street Trees) RECOMMENDED ACTION: Waive the second reading and adopt the ordinance modifying Article 15- 50.040 of the City Code. BACKGROUND: On November 6, 2013, the City Council conducted a public hearing, approved modifications to the ordinance amending Article 15- 50.040 of the City Code, and introduced the ordinance. Council also directed staff to place the ordinance on the Consent Calendar at the next regular meeting for adoption. FISCAL IMPACTS: None CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: Language in City Code Chapter 15- 50.040 — Tree Regulations will be unchanged. ALTERNATIVE ACTION(S): �a FOLLOW UP ACTION(S): A comprehensive summary of the ordinance will be published in a newspaper of general circulation in the City of Saratoga within 15 days after its adoption. The ordinance will also be codified. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda Page 1 of 2 .. item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. Additionally, the public hearing held on November 6, 2013 was advertised in the Saratoga News on October 22, 2013. The attached ordinance was published in the Saratoga News on November 12, 2013, and will be published again on November 26, 2013. ATTACHMENTS: Attachment A: Ordinance Updating City Code 15- 50.040 (Tree Regulations — Street Trees) Page 2 of 2 45 ORDINANCE AN ORDINANCE AMENDING SECTIONS 15- 50.040 OF THE SARATOGA CITY CODE CONCERNING STREET TREES THE CITY COUNCIL OF THE CITY OF SARATOGA HEREBY ORDAINS AS FOLLOWS: Findings 1. The City Council of the City of Saratoga wishes to clarify provisions of the City Code concerning responsibility for street trees in the City of Saratoga. 2. This ordinance amends provisions of the City's zoning regulations in Chapter 15 of the Code. These amendments were considered by the Planning Commission of the City of Saratoga and following a duly noticed public hearing on October 9, 2013, the Planning Commission recommended adoption of the ordinance. 3. The City Council of the City of Saratoga held a duly noticed public hearing on November 6, 2013 and after considering all testimony and written materials provided in connection with that hearing, introduced this ordinance. Therefore, the City Council hereby ordains as follows: Section 1. Adoption. Section 15- 50.040 of the Saratoga City Code is amended as set forth below. Text to be added is indicated in bold double - underlined font (e.g., bold double - underlined) and text to be deleted is indicated in strikeout font (e.g., Wit). Text in standard font is readopted by this ordinance. 15- 40.040 Street Trees (a) Policies and standards. The Ceff m+ unity Development Public Works Director shall adm in ister implement as established from time to time by resolution of the Planning Commission e City Council. (b) Planting required as condition of approval. The planting of street trees may be required as a condition of any approval granted under this Chapter. (c) Responsibility for maintenance. The City shall provide maintenance for street trees and other trees located within the areas listed below a eommer-eial distf iet „a -A•-*°ria r ads unless such maintenance responsibility has been assumed by a property owner or other person under a landscape maintenance agreement with the City_ i Within the City right of way on the following streets: Allendale Avenue, Big Basin Way, Saratoga Avenue. Saratoga Sunnyvale Road. Cox Avenue. Quito Road. Prospect Road. and Fruitvale Avenue. and within anv median on anv City street: ii) Landscaping and Lighting District improvement areas for zone that include tree planting and maintenance as part of the authorized activities: and iii) Land owned and operated by the City, including, theCivic enter complex. library and orchard. Prospect Center. parks in the City's Park Master Plan, and parking districts. In all other areas of the City, the City shall not e ,,. uet but shall e ntfo 'he r4 lie r rt'?* of way; the owner or occupant of stlelrthe property including property encumbered by a public right of way) on which any street tree is located shall be responsible for the maintenance and removal (if necessary to protect public safety) of such street trees -en the r pet4 , and in the publ ,, r ght of way .,butting the r pet4<, This includes. but is not limited to, compliance with section 10- 05.030 regarding obstructions ofstreets, sidewalks, and intersections. Section 2. Severance Clause. The City Council declares that each section, sub - section, paragraph, sub - paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub - section, paragraph, sub - paragraph, sentence, clause and phrase of this ordinance. If any section, sub - section, paragraph, sub - paragraph, sentence, clause or phrase of this ordinance is held invalid, the City Council declares that it would have adopted the remaining provisions of this ordinance regardless of the portion held invalid, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. Section 3. California Environmental Quality Act The proposed amendments to the City Code are Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline section 15061(b)(3). CEQA applies only to projects which have the potential of causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, Staff is recommending amendments to the existing City Code and related sections and additions of provisions and reference appendices to the existing Code; the amendments and additions would have a de minimis impact on the environment. 47 Section 4. Publication. This ordinance or a comprehensive summary thereof shall be published in a newspaper of general circulation of the City of Saratoga within fifteen days after its adoption. Following a duly notice public meeting the foregoing ordinance was introduced and read at the regular meeting of the City Council of the City of Saratoga held on the 6th of November, and was adopted by the following vote following a second reading on the 20th of November. COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: Jill Hunter MAYOR OF THE CITY OF SARATOGA Saratoga, California APPROVED AS TO FORM: RICHARD TAYLOR, CITY ATTORNEY 517426.2 .; ATTEST: Crystal Morrow CLERK OF THE CITY OF SARATOGA Saratoga, California SARATOGA CITY COUNCIL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson PREPARED BY: Crystal Bothelio DIRECTOR: Dave Anderson City Clerk SUBJECT: Ordinance Amending Commission Meeting Attendance Requirements RECOMMENDED ACTION: Conduct a public hearing; introduce and waive the first reading of the attached ordinance amending Commission meeting attendance requirements in the City Code; and direct staff to place the ordinance on the consent calendar for adoption at the next regular City Council meeting. BACKGROUND: On September 4, 2013, the City Council directed staff to schedule discussion on the City's meeting attendance requirements for City Commissioners. Consequently, discussion on attendance requirements was scheduled for the October 16, 2013 Regular City Council Meeting. During this meeting, staff received direction from the City Council to return with an ordinance amending City Code 2- 12.040 to: 1) emphasize the importance of Commissioners attending regular meetings; 2) instate automatic removal of a Commissioner who misses three regular meetings in a 12 -month period; and 3) add an option to allow a Commissioner who is removed through this process to request the City Council excuse the vacancy. The above changes are included in the attached ordinance. FISCAL IMPACTS: Approval of the ordinance would not present any direct fiscal impacts to the City of Saratoga. CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: The attendance requirements for City Commissions would remain unchanged. ALTERNATIVE ACTION(S): Page 1 of 2 .. Council may choose to modify the ordinance and Commission meeting attendance requirements in some other manner. FOLLOW UP ACTION(S): Implement Council direction and notify Commissioners of updated attendance requirements after the ordinance is adopted. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. The public hearing for this item was advertised in the Saratoga News on November 5, 2013 ATTACHMENTS: Attachment A: Proposed Ordinance Amending Commission Meeting Attendance Requirements Page 2 of 2 50 ORDINANCE NO. AN ORDINANCE AMENDING ARTICLE 2 -12 OF THE SARATOGA CITY CODE THE CITY COUNCIL OF THE CITY OF SARATOGA DOES ORDAIN AS FOLLOWS: Findings The City of Saratoga wishes to amend Article 2 -12 of the City Code to clarify attendance requirements pertaining to City Commissions. 2. The City Council of the City of Saratoga held a duly noticed public hearing on November 20, 2013 and after considering all testimony and written materials provided in connection with that hearing, introduced this ordinance. Therefore, the City Council hereby ordains as follows: Section 1. Adoption. The Saratoga City Code is amended as set forth below. Text to be added is indicated in double - underlined font (e.g., double- underlined) and text to be deleted is indicated in strikeout font (e.g., strikee}rt). Text in standard font remains unchanged by this ordinance. City Code Article 2 -12 City Commissions. Section 2 -12 -040 Attendance (a) Each Commissioner shall regularly attend meetings of the Commission of which he or she is a member. (b) Commissioners are expected to make Commission service a high priority and to make a reasonable effort to attend all meetings. If a Commissioner is absent without permission of the Chair (or, in the case of the Chair, the Mayor) from three Pe regular Commission meetings in any twelve month period, the Commissioner's office becomes vacant and shall be filled as any other vacancy unless the vacancy is excused by the City Council in its sole discretion. A Commissioner whose office has become vacant may request the vacancy to be excused by filing a letter with the City Clerk within thirty (30) days of the effective date of the vacancy. If a Commissioner is absent without permission from two eenseetitive regular Commission meetings, the secretary of the Commission shall mail to the Commissioner a courtesy notice of the requirements of this section, provided, however, that such notice shall not operate as prerequisite to the establishment of a vacancy pursuant to this Subsection (b) and that failure to mail such notice shall not create any right of action in any Commissioner or any other person. 51 Section 2. Severance Clause The City Council declares that each section, sub - section, paragraph, sub - paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub - section, paragraph, sub - paragraph, sentence, clause and phrase of this ordinance. If any section, sub - section, paragraph, sub - paragraph, sentence, clause or phrase of this ordinance is held invalid, the City Council declares that it would have adopted the remaining provisions of this ordinance regardless of the portion held invalid, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. Section 3. California Environmental Quality Act The proposed amendments to the City Code are Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline sections 15061(b)(3) - the general rule that CEQA applies only to projects which have the potential of causing a significant effect on the environment. Section 4. Publication. This ordinance or a comprehensive summary thereof shall be published in a newspaper of general circulation of the City of Saratoga within fifteen days after its adoption. 52 Following a duly notice public hearing the foregoing ordinance was introduced and read at the regular meeting of the City Council of the City of Saratoga held on the 20th day of November 2013 and was adopted by the following vote following a second reading on the December 4, 2013. COUNCIL MEMBERS: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Crystal Bothelio CITY CLERK APPROVED AS TO FORM: Richard Taylor CITY ATTORNEY SIGNED: Jill Hunter MAYOR, CITY OF SARATOGA, CALIFORNIA DATE: DATE: 53 SARATOGA CITY COUNCIL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: Community Development CITY MANAGER: Dave Anderson PREPARED BY: Larry Francis DIRECTOR: James Lindsay SUBJECT: Adoption of the Various 2013 California Uniform Codes with Local Amendments RECOMMENDED ACTIONS: (1) Introduce and waive the first reading of the attached ordinance adopting and amending the referenced codes and direct the City Attorney to read the title of the codes to be adopted; (2) Introduce the attached resolution making findings regarding proposed amendments to the referenced codes; (3) Call a public hearing for December 4, 2013 to consider adoption of the attached ordinance and resolution; and (4) Direct staff to publish notice of the proposed ordinance adoption in accordance with the special requirements for adopting codes by reference. REPORT SUMMARY: The attached ordinance and resolution will amend California's various uniform building codes as needed to reflect conditions in Saratoga. The State periodically updates its building codes, and with each update, the City updates its own code accordingly. The last update was in July 2013, which goes into effect statewide January 1, 2014. The modifications proposed in the attached ordinance were developed by the Building Official in consultation with other Building Officials in the area. The proposed modifications are consistent with those adopted by other jurisdictions in the area. The proposed modifications to the Fire Code were developed by the Fire Marshal and Fire Chief in consultation with other fire officials in the region. The proposed modifications are consistent with those adopted by the Saratoga Fire Protection District, Santa Clara County, and some other cities in the area. Other cities have adopted variations on the proposed modifications as discussed in the staff report. The City must make findings regarding its modifications to the uniform codes and those findings are included in the resolution that would be adopted concurrently with the code amendments. The law regarding adoption of Uniform Codes requires that a public hearing be held at the time of the second reading instead of introduction. Accordingly, the recommended actions above call for setting a public hearing to be held at the meeting of December 4, 2013. 54 BACKGROUND: The construction of residential, commercial, and various other structures in California is regulated by Title 24 of the California Code of Regulations, also known as the California Building Standards Code ( "CBSC "). The CSBC is enforced by local governments through the building permit process. All construction in the State must comply with the CSBC unless the city or county in which the construction occurs has adopted amendments to the CSBC. Amendments are allowed only to address local climatic, geological, or topographical conditions based on specific findings. On January 1, 2014, the 2013 edition of the Building Codes will go into effect in Saratoga and throughout the State. The attached ordinance makes key provisions of the CSBC a part of the Saratoga Code and amends the CSBC as needed to reflect local conditions in Saratoga. The CBSC is compiled and published by the California Building Standards Commission. The CBSC compiles a number of specific codes Cities must enforce the CBSC Building Code, Residential Building Code, Plumbing Code, Fire Code, Mechanical Code, Energy Code, and Electrical Code even where the local City Code has not been revised to reflect the requirements of those codes. To avoid confusion, the Saratoga City Code adopts these portions of the CBSC by reference. In addition, the City of Saratoga has traditionally adopted the CBSC Fire Code by reference. (The Building, Residential Building, Plumbing, Mechanical, Energy, Electrical, Green Building Standards, and Fire Codes are referred to collectively in this staff report as the "Building Codes. ") The Building Official has reviewed the 2013 California Building Standards Code and recommends that: 1. The City adopt the 2013 California Building, Residential Building, Plumbing, Mechanical, Green Building Standards, Energy, and Electrical codes by reference; 2. The City adopt certain appendices to the California Building, Plumbing, Mechanical, and Fire Codes (these take effect only if adopted by the City); The City adopt various modifications to the 2013 California Building Standards Code that are reasonably necessary because of local climatic, geological, and topographical conditions; 4. The City adopts the 2013 California Fire Code by reference and make amendments to the code recommended by the Fire Chief and Fire Marshal as being reasonably necessary because of local climatic, geological, and topographical conditions. The attached ordinance (Attachment 3) would implement these recommendations. The attached resolution (Attachment 2) describes the modifications to the Building Codes that are proposed in the ordinance and sets forth reasons why the amendments are reasonably necessary because of local climatic, geological, or topographical conditions. SUMMARY OF ORDINANCE AND RESOLUTION: The attached ordinance amends Chapter 16 ( "Building Regulations ") of the Saratoga City Code. Section 1 of the ordinance explains that the State of California has adopted the Building Codes and explains the process, consistent with the State's statutory requirements, by which the City will adopt and modify the Building Codes. 2 55 Section 2 of the ordinance adopts and modifies the 2013 editions of the Building Codes. The ordinance reflects all these adoptions and modifications as they will appear in the Saratoga City Code. The specific provisions adopted and modified by the ordinance are summarized below and in more detail in the table presented as Attachment 1 to this Staff Report. 2013 California Building Code -- The 2013 California Building Code and Appendix I are adopted and modified in Article 16 -15 of the Saratoga City Code. The modifications made to the 2013 California Building Code in Article 16 -15 (`Building Code ") are detailed in Part 1 of Attachment 1. 2013 California Residential Building Code -- The 2013 California Residential Building Code is adopted and modified in Article 16 -18 of the Saratoga City Code. The modifications made to the 2013 California Residential Building Code in Article 16 -18 ( "Residential Building Code ") are detailed in Part 4 of Attachment 1. 2013 California Fire Code -- The 2013 California Fire Code and Appendices B, C, and J are adopted and modified in Article 16 -20 of the Saratoga City Code. The modifications made to the 2013 California Fire Code in Article 16 -20 ( "Fire Code ") are detailed in Part 5 of Attachment 1. 2013 CA Plumbing Code -- The 2013 California Plumbing Code and Appendices are adopted in Article 16 -25 of the Saratoga City Code. No modifications are proposed to the Plumbing Code or its appendices. 2013 CA Mechanical Code -- The 2013 California Mechanical Code and all its appendices are adopted in Article 16 -30 of the Saratoga City Code. No modifications are proposed to the Mechanical Code or its appendices. 2013 CA Electrical Code -- The 2013 California Electrical Code is adopted in Article 16 -35 of the Saratoga City Code. The 2013 California Electrical Code replaces former Article 16 -35 as the City's Electrical Code. No modifications are proposed to Electrical Code. 2013 CA Green Building Standards Code -- The 2013 California Green Building Standards Code is adopted in Article 1649 of the Saratoga City Code. The 2013 California Green Building Standards Code does not replace or preempt the green building requirements that are already a part of the municipal code of Article 16 -47, but instead act as additional requirements to those already present in the code. No modifications are proposed to the Green Building Standards Code. 2013 CA Energy Code —The California Energy Code is adopted in Article 16 -51 of the Saratoga City Code. This is a new section to the City Code. The California Energy Code was not previously adopted by the City. Early Warning Alarm System – This ordinance would amend the City's early warning alarm system requirement to allow the installation of alternative systems that perform the early warning notification function as well or better than the adopted standards. Staff is working with the fire districts to develop a cooperative agreement for implementation of this change. Miscellaneous Regulations – This ordinance would delete two sections of the "Miscellaneous Regulations" part of the Building Regulations. These sections, concerning swimming pool fencing and water conservation devices are now addressed by the Building Standards Code. The deletion is proposed to avoid conflicts between City requirements and the standard code. 3 56 SPECIAL NOTICE REQUIREMENTS Because the ordinance would adopt the various codes by reference, section 50022.6 of the Government Code requires that the title of the adopting ordinance, the titles of the codes that are adopted by reference directly by the ordinance, and the titles of the codes that are adopted by reference indirectly by the ordinance must be read during the introduction of the ordinance. (Gov. Code sec. 50022.3.) The titles of the codes that are adopted by reference indirectly by the attached ordinance are as follows: • the 2013 California Building Code (California Code of Regulations, Title 24, Part 2, Volumes 1 and 2, based upon the 2012 International Building Code as published by the International Code Council); • the 2013 California Residential Building Code (California Code of Regulations, Title 24, Part 2.5, based upon the 2012 International Residential Code as published by the International Code Council); • the 2013 California Fire Code (California Code of Regulations, Title 24, Part 9, based on the 2012 International Fire Code as published by the International Code Council); • the 2013 California Plumbing Code (California Code of Regulations, Title 24, Part 5, based on the American National Standard 2012 Uniform Plumbing Code); • the 2013 California Mechanical Code (California Code of Regulations, Title 24, Part 4, based on the American National Standard 2012 Uniform Mechanical Code); • the 2013 California Electrical Code (California Code of Regulations, Title 24, Part 3, based on the 2011 National Electrical Code as published by the National Fire Protection Association); • the 2013 California Green Building Standards Code (California Code of Regulations, Title 24, Part 11); and • the 2013 California Energy Code (California Code of Regulations, Title 24, Part 6). The City Council must also schedule a public hearing on the ordinance. Prior to holding the hearing, a notice stating the hearing time and place must be published once a week for two successive weeks in a newspaper of general circulation in or nearest to the City. The notice must state that copies of the codes being considered for adoption are on file with the City Clerk and open to public inspection. ALTERNATIVES The Council could elect not to introduce the ordinance. This would leave the City's building code inconsistent with State law and inconsistent with the City's enforcement obligations and would create confusion for persons building in the City of Saratoga. The Council could elect not to adopt the resolution. This would preclude the City from amending the 2013 California Building Standards Code. The City Council may choose not to adopt the 2013 Fire Code. Pursuant to Government Code 4 57 Section 13869, the City may instead ratify ordinances passed by the Fire Districts (and transmitted to the City) and send a copy of the City's findings to the Department of Housing and Community Development. This procedure would result in the adoption and modification of the Fire Code by Fire Districts. It will continue to be the responsibility of the Fire Districts to enforce the Fire Code in the City. Regardless of how the City adopts the 2013 Fire Code, the City Council may also choose to modify the fire sprinkler provisions in the Fire Code. Section 903.2 requires that an automatic sprinkler system be installed throughout all existing buildings when modifications are made that increase the gross floor area to more than 3,600 square feet. There is an exception for one -time additions to existing buildings made after January 1, 2013, which do not exceed 1,000 square feet in building area. FISCAL IMPACTS: No significant fiscal impacts. ADVERTISING, NOTICING, AND PUBLIC CONTACT: Notice of this meeting. Notice for ordinance adoption will include notices advertising the adoption of the Building Codes in the Saratoga News on December 1 and December 8. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting, and residents may subscribe to the agenda on -line by opting in at www.saratoga.ca.us. ATTACHMENTS: Attachment 1 — Table summarizing effect of proposed ordinance Attachment 2 — Resolution Attachment 3 — Ordinance 5 M2 ATTACHMENT 1 PART 1: AMENDMENTS TO THE 2013 BUILDING CODE This table summarizes proposed modifications to the 2013 Building Code. The first column shows where in the attached ordinance (which will become the 2013 Saratoga Building Code) the modification is adopted. The second column references the section of the 2013 California Building Code that is modified. The third column explains the modification that is made. Minor changes or changes in organization are not included in the table. Additional explanation of the facts and circumstances requiring the change is included in the Resolution describing the need for the findings; the Resolution is Attachment 2 to this staff report. 2013 Saratoga Amended Explanation Building Code Sections of the 2013 CA Building Code 16- 15.010 Not Adopts the 2013 CA Building Code. Applicable 16- 15.020 Not Specifies that all sections of Title 24 are enforceable Applicable in the City of Saratoga, as modified by this ordinance. 16- 15.025 (a) 107.5 Amends the 2013 CA Building Code section regarding retention of plans. 16.15- 030(a) 105.5 Amends the 2013 CA Building Code section regarding expiration of permits. 16.15- 040(a) 109.2.1 Adds a new subsection to the 2013 CA Building Code to make it clear the city can prescribe reasonable fees to defray the cost of regulation. Adds provisions for permit, investigation, plan review, and other additional fees. 16.15- 045(b) 1505.1.4.1 10% to 50% which is in line with the 2013 CBC and surrounding jurisdictions. 16.15- 045(a) 1505.1.3 Changes the area of roof replacement that would rigger installation of a fire- retardant roof from 10% to 50% which is in line with the 2013 CBC and surrounding ' urisdictions. 2 59 16- 15.050(a) 707A.8 Amends the 2013 CA Building Code regarding Building Code Sections of exterior covering. 16- 15.055(a) 710A.3.2 Deletes Section 710A.3.1 -.2 of the 2013 CA Building Building Code regarding accessory structures 16- 15.055(b) 710A.4 Amends the 2013 CA Building Code regarding 16- 18.010 Not accessory structures 16- 15.060 903.2 Amends code to reflect the amendments of the 16- 18.020 Not fire code PART 2: AMENDMENTS TO THE 2013 RESIDENTIAL BUILDING CODE This table summarizes proposed modifications to the 2013 California Residential Building Code. The first column shows where in the attached ordinance (which will become the 2013 Saratoga Building Code) the modification is adopted. The second column references the section of the 2013 California Residential Building Code that is modified. The third column explains the modification that is made. Minor changes or changes in organization are not included in the table. Additional explanation of the facts and circumstances requiring the change is included in the Resolution describing the need for the findings; the Resolution is Attachment 2 to this staff report. 2013 Saratoga Amended Explanation Building Code Sections of the 2013 CA Building Code 16- 18.010 Not Adopts the 2013 CA Building Code. Applicable 16- 18.020 Not Specifies that all sections of Title 24 are enforceable Applicable in the City of Saratoga, as modified by this ordinance. 16- 18.025(a) R313.1 Amends the 2013 CA Residential Building Codes provisions for townhouse automatic fire sprinkler systems 16- 18.025(b) R313.2 Amends the 2013 CA Residential Building Codes provisions for one and two family dwellings automatic fire sprinkler systems 16- 18.030(a) R327.7.9 Amends the 2013 CA Residential Building Code regarding the underside of appendages 16- 18.030(b) R327.10.3.2 Deletes Section R327.10.3.2 of the Residential Building Code regarding accessory structures 16- 18.030(c) R327.10.4 Amends the 2013 CA Residential Building Code regarding accessory structures II .c 16- 18.035(a) R403.1.3 Amends the 2013 CA Residential Building Code regarding plain concrete. 16- 18.040(a) R602.10.4and Amends the 2013 CA Residential Building Code Table regarding Seismic Design Categories D0, D 1, and R602.10.3(3) D2 16- 18.045(a) R902.1.4. Amends the 2013 CA Residential Building Code to retain the Saratoga 61 62 Code's provisions for roof coverings. 16- 18.045(b) R902.1.3 Amends the 2013 CA Residential Building Code regarding roof coverings. 62 PART 3: AMENDMENTS TO THE 2013 CALIFORNIA FIRE ODE The following is a summary of the major modifications to the 2013 Fire Code proposed by the Fire Chiefs Association based on materials provided by the Association. 16- 20.010 Adoption of the California Fire Code and International Fire Code. 16- 20.015 Enforcement of Title 24 of the California Code of Regulations. 16- 20.020 Fire Department and Chief. 16- 20.050 Amendments to Chapter 1, Division II of the Fire Code; Administration. 16- 20.060 Amendments to Chapter 2 of the Fire Code; Definitions 16- 20.070 Amendments to Chapter 3 of the Fire Code; General precautions against fire. 16- 20.080 Amendments to Chapter 4 of the Fire Code; Emergency planning and preparedness. 16- 20.090 Amendments to Chapter 5 of the Fire Code; Fire service features. 16- 20.100 Amendments to Chapter 6 of the Fire Code; Building services and systems. 16- 20.110 Amendments to Chapter 8 of the Fire Code; Interior finish, decorative materials and furnishings. 16- 20.120 Amendments to Chapter 9 of the Fire Code; Fire protection systems. 16- 20.130 Amendments to Chapter 28 of the Fire Code; Lumberyards and woodworking facilities. 16- 20.140 Amendments to Chapter 33 of the Fire Code; Fire safety during construction and demolition. 16- 20.150 Amendments to Appendix Chapter 49 of the Fire Code; Requirements for Wildland -Urban interface fire areas. 63 16- 20.160 Amendments to Chapter 50 of the Fire Code; Hazardous materials— General provisions. 16- 20.170 Amendments to Chapter 56 of the Fire Code; Explosives and fireworks. 16- 20.180 Amendments to Chapter 57 of the Fire Code; Flammable and combustible liquids. RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA MAKING FINDINGS OF FACT REGARDING THE NEED FOR THE MODIFICATIONS TO THE PROVISIONS OF THE 2013 CALIFORNIA BUILDING STANDARDS CODE MADE IN THE SARATOGA CITY CODE WHEREAS, California Health and Safety Code Section 18938 makes certain provisions published in the California Building Standards Code pursuant to Health and Safety Code Section 17922 applicable to all occupancies throughout the state and effective one hundred eighty days after publication by the California Building Standards Commission ( "Commission "), or at a later date established by the Commission; and WHEREAS, Health and Safety Code Section 17958 permits cities to amend the requirements of the California Building Standards Code in accordance with Health and Safety Code Sections 17958.5 and 17958.7; and WHEREAS, Health and Safety Code Section 17958.5 permits cities in adopting provisions of the California Building Standards Code to make such changes in such provisions as the city determines, pursuant to Health and Safety Code Section 1795 8.7, are reasonably necessary because of local climatic, geological, or topographical conditions; and WHEREAS, Health and Safety Code Section 17958.7 requires that a city, before making changes pursuant to Health and Safety Code Section 17958.5, must make an express finding that such changes are reasonably necessary because of local climatic, geological, or topographical conditions; and WHEREAS, under Health and Safety Code Section 17958.7, changes pursuant to Health and Safety Code Section 17958.5 may not become effective until the required findings and the changes have been filed with the California Building Standards Commission; and WHEREAS, Government Code Section 50022.2 permits a city to enact ordinances that adopt codes or statutes, including codes of the State of California, by reference; and WHEREAS, the City Council of the City of Saratoga ( "City Council ") intends to adopt an ordinance adopting by reference certain provisions of the California Building Standards Code and making changes to certain of those provisions pursuant to Health and Safety Code Section 17958.5 ( "Building Regulations Adoption Ordinance "); and WHEREAS, the City Council has reviewed Attachment 1, which sets forth the reasons for the proposed changes to the California Building Standards Code contained in the Building Regulations Adoption Ordinance. NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby declare and find that the changes to the provisions of the California Building Standards Code set forth in the Building Regulations Adoption Ordinance are reasonably necessary because of local climatic, geological, or topographical conditions set forth in Attachment 1 in accordance with Health and Safety Code Section 17958.7; and BE IT FURTHER RESOLVED that a copy of this Resolution, including Attachment 1, shall be filed with the California Building Standards Commission in accordance with Health and Safety Code Section 17958.7. PASSED AND ADOPTED by the City Council of the City of Saratoga at a regular meeting of the Saratoga City Council held on the 4th day of December 2013 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ATTEST: DATE: Crystal Bothelio, City Clerk , Mayor ATTACHMENT 1 FINDINGS REGARDING THE NEED FOR AMENDMENTS TO PROVISIONS IN THE 2013 CALIFORNIA RESIDENTIAL BUILDING CODE TO BE ADOPTED BY REFERENCE IN THE CITY CODE OF THE CITYOF SARATOGA The City of Saratoga makes the following findings regarding the need for amending the 2013 California Residential Building Code: FINDING 1: CLIMATIC CONDITIONS: The City of Saratoga experiences low humidity, high winds, and warm temperatures during the summer months creating conditions that are particularly conducive to the ignition and spread of grass, brush, and structure fires. FINDING 2: TOPOGRAPHICAL CONDITIONS: The remoteness and steepness of hillside areas in the City along with long, narrow roadways significantly impact the ability of emergency responders to extinguish or control wildland or structure fires. The landscape of Saratoga also includes steep slopes susceptible to erosion, especially during the rainy season. Areas of critically expansive soil and other unstable soil conditions create a need for soil retention and the diversion or increased flow of surface waters, particularly on steep slopes. FINDING 3: SEISMIC CONDITIONS: The City of Saratoga's dense population is located in an area of high seismic activity, as indicated by the United States Geological Survey and the California Division of Mines and Geology. Recent earthquake activities, including the 1989 Loma Prieta earthquake, have indicated that the lack of adequate design and detailing endangered building occupants and the occupants of nearby structures. The City's adjacency to active earthquake faults also means that building work must be completed in a timely fashion to minimize the danger to the public health, safety, and welfare. The table below describes the City of Saratoga's amendments to specific provisions of the 2013 California Residential Building Code and states which of the findings above and other conditions make the amendment reasonably necessary. 67 Amended Annlicable Explanation Findings Sections of Section of the 2013 CA Saratoga Residential Building Code Building Ordinance Code R313.1 16- 18.025(a) Amends the 2013 CA Finding Nos. 1 and 2. In order to Residential Building minimize the risks to persons and Codes provisions for property due to potential response townhouse automatic delays and compromised fire fire sprinkler systems suppression capabilities, mitigation measures such as automatic sprinkler systems are necessary. The ability of automatic sprinklers to get water on a fire early also reduces the fire flow demand and the need for multiple hydrants. R313.2 16- 18.025(b) Amends the 2013 CA Findings Nos. 1 and 2. In order to Residential Building minimize the risks to persons and Codes provisions for property due to potential response one and two family delays and compromised fire dwellings automatic suppression capabilities, mitigation fire sprinkler systems measures such as automatic sprinkler systems are necessary. The ability of automatic sprinklers to get water on a fire early also reduces the fire flow demand and the need for multiple hydrants. R327.7.9 16- 18.030(a) Amends the 2013 CA Finding No. 1. The increased risk of Residential Building fire in the City of Saratoga makes it Code regarding the necessary to amend this section to underside of make it mandatory. appendages R327.10.3.2 16- 18.030(b) Deletes Section This section is unnecessary, as the R327.10.3.2 of the requirements are already specified in Residential Building CBSC 701.A.3. Code regarding accessory structures R327.10.4 16- 18.030(c) Amends the 2013 CA Finding No. 1. The increased risk of Residential Building fire in the City of Saratoga makes it Code regarding necessary to amend this section to accessory structures make it mandatory. .: R403.1.3 16- 18.035(a) Amends the 2013 Finding No. 3. This proposed and Table CA Residential amendment to the CRC is made to Building Code be consistent with Tri Chapter regarding plain Uniform Code Committee concrete. amendment 3 that modifies the plain concrete provisions in CBC Section 1908.1,8 and American Concrete Institute 318 Section 22.10.1. This proposed amendment addresses the problem of poor performance of plain or under - reinforced concrete R902.1.4.1 16- 18.045(a) A new subsection has footings during a seismic event. This been added to the amendment reflects the 2013 CA Residential recommendations by the Structural Building Code to Engineers Association of Southern retain the Saratoga California (SEAOSC) and the Los Code's provisions for Angeles City Joint Task Force that roof coverings. investigated the poor performance of plain and under - reinforced concrete footings observed in 1994 Northridge earthquake. R602.10.2.1 16- 18.040(a) Amends the 2013 CA Finding No. 3. The proposed and Table Residential Building amendment addresses the problem of R602.10.1.2(2) Code regarding poor performance of gypsum Seismic Design wallboard and Portland cement Categories Do, DI, plaster as wall bracing materials in and D2 high seismic areas. This amendment reflects the recommendations by the Structural Engineers Association of Southern California (SEAOSC) and the Los Angeles City Joint Task Force that investigated the poor performance of these bracing materials that were observed in 1994 Northridge earthquake. R902.1.4.1 16- 18.045(a) A new subsection has Finding Nos. 1 and 2. In order to been added to the minimize the risks to persons and 2013 CA Residential property due to potential response Building Code to delays and compromised fire retain the Saratoga suppression capabilities, mitigation Code's provisions for measures such as the installation of roof coverings. fire- retardant Class A roofing are necessary. .• R902.1.3 16- 18.045(b) Amends the 2013 CA Finding Nos. 1 and 2. In order to Residential Building minimize the risks to persons and Code to regarding property due to potential response roof coverings. delays and compromised fire suppression capabilities, mitigation measures such as the installation of fire- retardant Class A roofing are necessary. 70 FINDINGS REGARDING THE NEED FOR AMENDMENTS TO PROVISIONS IN THE 2013 CALIFORNIA BUILDING CODE TO BE ADOPTED BY REFERENCE IN THE CITY CODE OF THE CITY OF SARATOGA The City of Saratoga makes the following findings regarding the need for amending the 2013 California Building Code: FINDING 1: CLIMATIC CONDITIONS: The City of Saratoga experiences low humidity, high winds, and warm temperatures during the summer months creating conditions are particularly conducive to the ignition and spread of grass, brush, and structure fires. FINDING 2: TOPOGRAPHICAL CONDITIONS: The remoteness and steepness of hillside areas in the City along with long, narrow roadways significantly impact the ability of emergency responders to extinguish or control wildland or structure fires. The landscape of Saratoga also includes steep slopes susceptible to erosion, especially during the rainy season. Areas of critically expansive soil and other unstable soil conditions create a need for soil retention and the diversion or increased flow of surface waters, particularly on steep slopes. FINDING 3: SEISMIC CONDITIONS: The City of Saratoga's dense population is located in an area of high seismic activity, as indicated by the United States Geological Survey and the California Division of Mines and Geology. Recent earthquake activities, including the 1989 Loma Prieta earthquake, have indicated that the lack of adequate design and detailing endangered building occupants and the occupants of nearby structures. The City's adjacency to active earthquake faults also means that building work must be completed in a timely fashion to minimize the danger to the public health, safety, and welfare. The table below describes the City of Saratoga's amendments to specific provisions of the 2013 California Building Code and states which of the findings above and other conditions make the amendment reasonably necessary. Amended Sections of the 2013 CA Building Applicable Section of Appendix A to Explanation Findings Ordinance Code 107.5 16- 15.025 (a) Amends the 2013 CA Finding No. 3. The City of Saratoga Building Code is adjacent to active earthquake faults section regarding capable of producing substantial retention of plans. seismic events. It is necessary for one set of plans to be retained on the work site at all times so that detailed inspections to ensure compliance with seismic standards can be carried out. This provision is identical to the provisions of the 2010 Saratoga Building Code, so no new findings are necessary. 71 105.5 16.15- 030(a) Amends the 2013 Finding No. 3. Given the City of CA Building Code Saratoga's section regarding adjacency to active earthquake faults expiration of permits. capable of producing substantial seismic events, building work must be completed in a timely fashion to minimize the danger to the public health, safety, and welfare. This provision is identical to the provisions of the 2010 Saratoga Building Code, so no new findings 109.2.1 16.15- 040(a) Adds a new The City of Saratoga may prescribe subsection to the fees to defray the cost of enforcement 2013 CA Building of rules and regulations promulgated Code to make it clear by the Department of Housing and the city can prescribe Community Development under the reasonable fees to terms of Sec. 109.2 of the 2013 CA defray the cost of Building Code. These fees will be set regulation. Adds by the City Council of Saratoga to provisions for permit, ensure they are reasonably necessary investigation, plan given the cost of regulation to the review, and other City. This provision is identical to additional fees. the provisions of the 2010 Saratoga Building Code, so no new findings are necessary. 1505.1.4.1 16.15- 045(b) Amends the 2013 Finding Nos. 1 and 2. In order to CA Building Code minimize the risks to persons and to retain the property due to potential response Saratoga Code's delays and compromised fire provisions for roof suppression capabilities, mitigation coverings. measures such as the installation of fire- retardant Class A roofing are necessary. 1505.1.3 16.15- 045(a) Amends the 2013 CA Finding Nos. 1 and 2. In order to Building Code minimize the risks to persons and section regarding roof property due to potential response coverings. delays and compromised fire suppression capabilities, mitigation measures such as the installation of fire- retardant Class A roofing are necessary. 707A.8 16- 15.050(a) Amends the 2013 CA Finding No. 1. The increased risk of Building Code fire in the City of Saratoga makes it regarding exterior necessary to amend this section to covering. make it mandatory. 71 OA. 3.2 16- 15.055(a) Deletes Section This section is unnecessary, as the 710A.3.2 of the 2013 requirements are already specified in CA Building Code CBSC 701.A.3. regarding accessory structures 72 710A.4 16- 15.055(b) Amends the 2013 CA Finding No. 1. The increased risk of Building Code fire in the City of Saratoga makes it regarding accessory necessary to amend this section to structures make it mandatory. 903.2 16- 15.060(a) amends the building Amendment to be consistent with code regarding fire Fire District amendments sprinklers. 73 FINDINGS REGARDING THE NEED FOR AMENDMENTS TO PROVISIONS IN THE 2013 CALIFORNIA FIRE CODE TO BE ADOPTED BY REFERENCE IN THE CITY CODE OF THE CITYOF SARATOGA The City of Saratoga makes the following findings regarding the need to amend the 2013 California Fire Code: Finding No. 1 — Climatic Conditions: The City of Saratoga experiences low humidity, high winds, and warm temperatures during the summer months creating conditions which are particularly conducive to the ignition and spread of grass, brush, and structure fires. Finding No. 2 — Topogrgphical Conditions: The remoteness and steepness of hillside areas in the City along with long, narrow roadways significantly impact the ability of emergency responders to extinguish or control wildland or structure fires. Finding No. 3 — Seismic Conditions: The City of Saratoga is situated adjacent to active earthquake faults capable of producing substantial seismic events. Should a significant seismic event occur, uncontrolled hazardous materials releases and fires could pose the greatest threat to the largest number of people. Since the City is divided by a freeway and highway, a major earthquake would significantly impact the ability of fire crews to respond to emergencies should one or more roadways be blocked or damaged due to bridge collapse or debris from falling structures. Additionally, fire suppression capabilities will be severely limited should the water system be extensively damaged during the seismic event. Therefore, in order to minimize the risks to persons and property due to potential response delays and compromised fire suppression capabilities, mitigation measures are necessary such as but not limited to; automatic fire suppression systems, controls for hazardous materials, safety provisions in buildings for firefighters and additional fire hydrants. Additions and deletions to the 2013 California Fire Code are hereby determined to be reasonably necessary based on the above findings and apply to following amended, added, or deleted sections: 105.1.4 — Construction Permit Fees (added) 105.1.5 — Operational Permit Fees (added) 105.6.8 — Compressed Gases (amended) 105.6. 10 — Cryogenic Fluids (amended) 105.6.48 — Day Care Facility (added) 105.6.49 — Institutional (added) 106.5 — Final Inspection (added) 109.3 — Violation Penalties (amended) 311.5 — Placards (deleted) 311.5.1 — Placard Location (deleted) 311.5.2 — Placard Size and Color (deleted) 311.5.3 — Placard Date (deleted) 311.5.4 — Placard Symbols (deleted) 311.5.5 — Informational Use (deleted) 316.6 — Roof Guardrails at Interior Courts (added) 404.2 — Where Required (amended) 404.3.1 — Fire Evacuation Plans (amended) 74 Table 405.2 — Fire Evacuation Drill Frequency and Participation (amended) 408.2.2 — Announcements (deleted) 408.3.1 — First Emergency Evacuation Drill (deleted) 408.3.2 — Emergency Evacuation Drill Deferred (deleted) 408.3.3 — Time of Day (deleted) 408.3.4 — Assembly Points (deleted) 408.5.1 — Fire Safety and Evacuation Plans (deleted) 408.5.2 — Staff Training (deleted) 408.5.3 — Resident Training (deleted) 408.5.4 — Drill Frequency (deleted) 408.5.5 — Resident Participation (deleted) 408.6 — Group I -2 Occupancies (deleted) 408.6.1 — Evacuation Not Required (deleted) 408.6.2 — Coded Alarm Signal (deleted) 408.7 — Group I -3 Occupancies (deleted) 408.7.1 — Employee Training (deleted) 408.7.2 — Staffing (deleted) 408.7.3 — Notification (deleted) 408.7.4 — Keys (deleted) 408.8 — Group R -1 Occupancies (deleted) 408.8.1 — Evacuation Diagrams (deleted) 408.8.2 — Emergency Duties (deleted) 408.8.3 — Fire Safety and Evacuation Instructions (deleted) 408.9 — Group R -2 Occupancies (amended) 408.9.4 — First Emergency Evacuation Drill (added) 408.9.5 — Time of Day (added) 408.11.1.2 — Revisions (amended) 503.1 — Where Required (amended) 503.1.1 — Buildings and Facilities (amended) 503.2.1 — Dimensions (amended) 504.4 — Access Control Devices (added) 510.1 — Emergency Responder Radio Coverage in Buildings (amended) 510.1.1 — Obstruction by new buildings (added) 605.11 — Immersion Heaters (added) 608.6.4 — Failure of Ventilation System (added) 806. 1.1 — Display Inside Buildings (amended) 903.2 — Where Required (amended) 903.2.19 — Group U. Garage Sprinklers (added) 903.3.1.1— NFPA 13 Sprinkler Systems (amended) 903.3.1.2 — NFPA 13R Sprinkler Systems (amended) 903.3.1.3 — NFPA 13D Sprinkler Systems (amended) 912.2 — Location (amended) 1404.8 — Fire Walls (added) 1411.1 — Stairways Requires (amended) 1411. 1.1 — Required Means of Egress (added) 1802.1 — Definitions (amended) — Fire Protection Water Supply System (added) 1908.11 — Fire Protection Water Supply System (added) — Fire Extinguishing Systems for Workstations Dispensing, Handling or Using Hazardous Materials (added) — Scope (amended) 75 — Explosives (added) — Fireworks (added) — Rocketry (added) — Small Arms Ammunition- General (added) — Packages (added) — Repackaging (added) — Damaged Packages (added) — Storage in Group R Occupancies (added) — Smokeless Propellants (added) — Black Powder (added) — Small Arms Primers (added) — Display and Storage in Group M Occupancies (added) — Display (added) — Smokeless Propellant (added) 3301.5.3.1.2 — Black Powder (added) 3301.5.3.1.3 — Small Arms Primer (added) — Storage (added) — Storage of Smokeless Propellant (added) 3301.5.3.2.2 — Black Powder (added) 3301.5.3.2.3 — Small Arms Primers (added) 3404.2.7.5.8 — Overfill Prevention (amended) 3404.2.7.5.9 — Automatic Filling of Tanks (added) 3404.2.9.6.1 — Storage of Flammable or Combustible Liquids (amended) 3804.2 — Storage of Liquefied Petroleum Gas (amended) 3506.2 — Storage of Stationary tanks of Flammable Cryogenic Fluids (amended) 4902.1 — General (amended) — Application (amended) — General (amended) — Corrective Actions (added) — General (added) — Content (added) — Cost (added) — Plan Retention (added) 4909 — Access (added) — General (added) — Driveways (added) 4910 — Water Supply (added) — General (added) — Clearance of Fuel (added) — Standby Power (added) 4911 — General Requirements for Suppression and Control (added) — Scope (added) — Clearance of Brush or Vegetative Growth from Roadways (added) — Access Restriction (added) — Restricted Entry to Public Lands (added) — Use of Fire Roads and Defensible Space (added) — Use of Motorcycles, Motor Scooters, Ultra -Light Aircraft and Motor Vehicles (added) — Tampering with Locks, Barricades, Signs and Address Markers (added) 76 4912 — Ignition Source Control (added) — General (added) — Clearance from Ignition Sources (added) — Smoking (added) — Equipment and Devices Generating Heat, Sparks or Open Flames (added) — Fireworks (added) 4913 — Outdoor Fires (added) — General (added) — Permits (added) — Restrictions (added) — Outdoor Fireplaces, Permanent Barbecues and Grills (added) 4914 — Liquefied Petroleum Gas Installations (added) — Vegetation Clearance around Tanks /Containers (added) 4915 — Storage of Firewood and Combustible Materials (added) — General (added) — Storage for Off -Site Use (added) 4916 — Dumping (added) — Waste Material (added) — Ashes and Coals (added) 4917 — Protection of Pumps and Water Storage Facilities (added) 4917.1 — Clearance of Flammable Vegetation (added) 77 FINDINGS REGARDING THE NEED FOR AMENDMENTS TO PROVISIONS IN THE 2013 CALIFORNIA MECHANICAL CODE TO BE ADOPTED BY REFERENCE IN THE CITY CODE OF THE CITYOF SARATOGA No findings are necessary because the 2013 California Mechanical Code is being adopted without modification. W FINDINGS REGARDING THE NEED FOR AMENDMENTS TO PROVISIONS IN THE 2013 CALIFORNIA ELECTRICAL CODE TO BE ADOPTED BY REFERENCE IN THE CITY CODE OF THE CITYOF SARATOGA No findings are necessary because the 2013 California Electrical Code is being adopted without modification. 79 FINDINGS REGARDING THE NEED FOR AMENDMENTS TO PROVISIONS IN THE 2013 CALIFORNIA PLUMBING CODE TO BE ADOPTED BY REFERENCE IN THE CITY CODE OF THE CITYOF SARATOGA No findings are necessary because the 2013 California Plumbing Code is being adopted without modification. :c FINDINGS REGARDING THE NEED FOR AMENDMENTS TO PROVISIONS IN THE 2013 CALIFORNIA GREEN BUILDING STANDARDS CODE TO BE ADOPTED BY REFERENCE IN THE CITY CODE OF THE CITY OF SARATOGA No findings are necessary because the 2013 California Green Building Standards Code is being adopted without modification. m FINDINGS REGARDING THE NEED FOR AMENDMENTS TO PROVISIONS IN THE 2013 CALIFORNIA ENERGY CODE TO BE ADOPTED BY REFERENCE IN THE CITY CODE OF THE CITY OF SARATOGA No findings are necessary because the 2013 California Energy Code is being adopted without modification. 0 Ordinance No. An Ordinance Adopting the 2013 California Building, Residential Building, Electrical, Mechanical, Plumbing, Fire, Energy, and Green Building Standards Codes with Modifications for Local Conditions and Making Certain Other Amendments to Chapter 16 (Building Regulations) of the City Code THE CITY COUNCIL OF THE CITY OF SARATOGA DOES ORDAIN AS FOLLOWS: Section 1. Findings. The City Council finds and declares as follows: A. The State of California has adopted the 2013 California Building Standards Code (California Code of Regulations, Title 24, Part 2, Volumes 1 and 2, based upon the 2012 International Building Code as published by the International Code Council); the 2013 California Residential Building Code (California Code of Regulations, Title 24, Part 2.5, based upon the 2012 International Residential Code as published by the International Code Council); the 2013 California Electrical Code (California Code of Regulations, Title 24, Part 3, based on the 2011 National Electrical Code as published by the National Fire Protection Association); the 2013 California Mechanical Code (California Code of Regulations, Title 24, Part 4, based on the American National Standard 2012 Uniform Mechanical Code); the 2013 California Plumbing Code (California Code of Regulations, Title 24, Part 5, based on the American National Standard 2012 Uniform Plumbing Code); the 2013 California Energy code (California Code of Regulations, Title 24, Part 6); the 2013 California Fire Code (California Code of Regulations, Title 24, Part 9, based on the 2012 International Fire Code as published by the International Code Council); and the 2013 California Green Building Standards Code (California Code of Regulations, Title 24, Part 11). These Codes shall hereinafter be referred to collectively as the "Building Codes." B. On November 20, 2013, pursuant to California Government Code Section 50022.3, the City Council of Saratoga conducted a first reading of the title of the ordinance adopting the Building Codes and of the codes to be adopted thereby and scheduled a public hearing on the adoption of the Building Codes, to be held December 4, 2013. C. On November 19, 2013, pursuant to California Government Code Section 50022.6, at least one copy of the primary codes certified as true copies by the legislative clerk were filed with the legislative clerk for public inspection. W D. On November 20, 2013, pursuant to California Government Code Sections 50022.3 and 6066, a notice was published in a newspaper of general circulation stating the time and place of the December 4, 2013, public hearing and including a description the legislative body deemed sufficient to give notice of the purpose and subject matter of said ordinance. The notice informed the public that copies of the primary codes considered for adoption were on file with the clerk of the legislative body and open for public inspection. E. On November 27, 2013, pursuant to California Government Code Sections 50022.3 and 6066, a second notice identical to the first was filed in a newspaper of general circulation. F. On December 4, 2013, pursuant to California Government Code Section 50022.4, a public hearing was held. Following public testimony and consideration, the City Council of Saratoga found that adoption of the Building Codes was in the public interest. Except as to the additions, deletions, and amendments hereinafter noted, the Building Codes are hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Building Regulations of the City. G. Additions, deletions, and amendments similar to those adopted in the City of Saratoga's 2010 Building Regulations were and are deemed reasonably necessary because of local climatic, geological, or topographical conditions pursuant to Government Code Section 17958.5. Express findings that these modifications to the Building Code were reasonably necessary were filed upon the adoption of the City of Saratoga's 2010 Building Regulations with the California Building Standards Commission in accordance with California Health and Safety Code Section 17958.7 and are available as a public record. H. The new additions, deletions, and amendments hereinafter noted are deemed reasonably necessary because of local climatic, geological, or topographical conditions pursuant to Government Code Section 17958.5. Express findings that these modifications to the Building Code are reasonably necessary will be filed with the California Building Standards Commission in accordance with California Health and Safety Code Section 17958.7 before this ordinance takes effect. I. While the ordinance codified in this Article is in force, a true copy of the Building Codes shall be kept for public inspection in the office of the Building Official and a reasonable supply of the Building Code shall be available for public purchase in the office of the City Clerk in accordance with Government Code Section 50022.6. 2 Section 2. Adoption. Article 16 -15 of the Saratoga City Code concerning the Building Code is hereby deleted in its entirety and replaced with Article 16 -15 attached in Appendix A. Article 16 -18 of the Saratoga City Code concerning the Residential Building Code is hereby adopted as attached in Appendix A. Article 16 -20 of the Saratoga City Code concerning the Fire Code is hereby deleted in its entirety and replaced with Article 16 -20 attached in Appendix A. Article 16 -25 of the Saratoga City Code concerning the Plumbing Code is hereby deleted in its entirety and replaced with Article 16 -25 attached in Appendix A. Article 16 -30 of the Saratoga City Code concerning the Mechanical Code is hereby deleted in its entirety and replaced with Article 16 -30 attached in Appendix A. Article 16 -35 of the Saratoga City Code concerning the Electrical Code is hereby deleted in its entirety and replaced with Article 16 -35 attached in Appendix A. Article 16 -49 of the Saratoga City Code concerning the Green Building Standards Code is hereby adopted as shown in Article 16 -49 attached in Appendix A. Article 16 -51 of the Saratoga City Code concerning the Energy Code is hereby adopted as shown in Article 16 -51 attached in Appendix A. Section 16- 60.030 of the Saratoga City Code concerning the Early Warning Alarm System alarm system requirement is amended to include the bold underlined (example) text below: 16- 60.030 Plan check by Fire District. (a) All documentation relative to the proposed installation shall be submitted to the Fire District for approval. Where property is located within the jurisdiction of the Central Fire District, one copy of such documentation shall be furnished to the Chief of such District and one copy of such documentation shall also be furnished to the Chief of the Saratoga Fire District who shall determine whether the installation will comply with the applicable standards for the proposed system. The documentation shall include all plans, specifications, diagrams, data sheets, manufacturer's recommendations, and other information and documents listed in the standards and requirements adopted by the Saratoga Fire District, and such additional items pertaining to the proposed system as may be requested by the District. Notwithstanding any other provisions of this Code, alternatives to the adopted standards and requirements may be approved if the Chief of the Fire District having jurisdiction over the property where an alternative is to be installed determines that such alternative will perform the early warnjng notification function as well or better than the adopted standards. The Saratoga Fire District shall be furnished a cony of documentation for all annroved alternate installations. (b) The Fire Districts may establish a fee for the plan checking services rendered pursuant to this Section. Section 16- 75.010 of the Saratoga City Code concerning swimming pool fencing is deleted as shown below: s W1 K. M IN.M.Wri. IRTF amp MR.T. JJN MIN RKWHRUM Rrimm S. . Mm 1 1141 1- NOON! M111 ON I Section 16- 75.030 of the Saratoga City Code concerning water conservation devices is deleted as shown below: IrAWZI ! :- W1 K. M IN.M.Wri. IRTF amp MR.T. JJN MIN RKWHRUM Rrimm Section 3. California Environmental Quality Act. Pursuant to the California Environmental Quality Act ( "CEQA "), this action is 0 exempt under California Code of Regulations, Title 14, Section 15308 (the amendments are exempt because they assure maintenance, restoration, enhancement, or protection of the environment) and Section 15061(b)(3) (the amendments are exempt because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment). Section 4. Severance Clause. The City Council declares that each section, sub - section, paragraph, sub - paragraph, sentence, clause, and phrase of this ordinance is severable and independent of every other section, sub - section, sentence, clause, and phrase of this ordinance. If any section, sub- section, paragraph, sub - paragraph, sentence, clause, or phrase is held invalid, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of the portion held invalid and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. 5 M Section 5. Publication. This ordinance or a comprehensive summary thereof shall be published in a newspaper of general circulation of the City of Saratoga within fifteen days after its adoption. - Continued Next Page - 2 :: The foregoing ordinance was introduced and read at the regular meeting of the City Council of the City of Saratoga held on the 20th day of November, 2013, and was adopted by the following vote following a second reading on the 4th day of December, 2013: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE CITY OF SARATOGA Saratoga, California ATTEST: Crystal Bothelio CLERK OF THE CITY OF SARATOGA Saratoga, California APPROVED AS TO FORM: RICHARD TAYLOR, CITY ATTORNEY 5 :• /_1,W:1110119101I -1 The City of Saratoga Municipal Code Chapter 16 Building Regulations is amended as follows. Only the sections of Chapter 16 listed below are modified. All other sections not modified with this ordinance shall remain in effect: 16- 15.010 Adoption of 2013 California Building Code. (a) The 2013 California Building Code, Title 24, Part 2, Volume 1 and 2, including appendices F and I, referred to throughout this Chapter as the "Building Code," is hereby referred to and, except as to additions, deletions and amendments hereinafter noted, such code is hereby adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Building Code of the City. However, in accordance with California Government Code Section 50222.4, no penalty clauses are adopted by reference. In accordance with California Health and Safety Code Section 17958.7, express findings that modifications to the Building Code are reasonably necessary because of local climatic, geological, or topographical conditions are either already on file with the California Building Standards Commission or will be filed prior to the effective date of the ordinance codified in this Article. (b) In accordance with California Government Code Section 50022.6, at least one true copy of the Building Code has been on file with the City Clerk since fifteen days prior to enactment of the ordinance codified in this Article. While the ordinance codified in this Article is in force, a true copy of the Building Code shall be kept for public inspection in the office of the Building Official. A reasonable supply of the Building Code shall be available in the office of the City Clerk for public purchase. (c) The additions, deletions and amendments set forth in this Article are made to the Building Code, as adopted by reference in Section 16- 15.010(a). 16- 15.020 Enforcement of Title 24 of the California Code of Regulations. Pursuant to the laws of the State of California, Title 24 of the California Code of Regulations, also known as the California Building Standards Code, applies to all construction in the State of California and is enforced by the City of Saratoga in accordance with State law. This and other Articles of Chapter 16 of the Saratoga Code adopt certain provisions of Title 24 by reference and make revisions to reflect local climatic, geological, or topographical conditions. The provisions of Title 24 that are not adopted by reference or amended by this Article remain in effect as laws of the State. 16- 15.025 Retention of plans. (a) Section 107.5 of the Building Code is amended to read: a 107.5 Retention of plans. One set of reviewed plans and specifications shall be returned to the applicant and shall be kept on the site of the building or work at all times during which the work authorized thereby is in progress. One set of reviewed plans, specifications, and computations shall be retained by the building official as part of his permanent records. 16.15 -030 Expiration of permits. (a) Subsection 105.5 of the Building Code is amended to read: 105.5 Expiration of Permits. (a) Every permit issued by the building official under the provisions of the Building Code shall expire by limitation and become null and void if any one of the following occurs: (1) The building or work authorized by such permit is not commenced within 180 days from the date of such permit; or (2) The building or work authorized by such permit is suspended or abandoned at any time after the work is commenced for a period of 180 days; or (3) The permittee fails or refuses to request an inspection required by Section 110 of the Building Code within any period of 180 consecutive days after the work authorized by the permit is commenced. If the building official conducts such inspection within such 180 -day period, but declines to approve such inspection without correction of specified items and subsequent re- inspection, then the building permit shall not expire if such correction is made and passes re- inspection within 30 days after the end of the 180 -day period described in this subsection. (b) After such expiration, such work can be recommenced only upon reinstatement or issuance of a new permit to do so. The plans and specifications for a reinstated permit or new permit shall comply with all provisions of the City building code in effect at the time of reinstatement or issuance of a new permit. A reinstatement or new permit may be issued as follows: (1) Reinstatement. Expired Permits may be reinstated if an application for permit reinstatement within 180 days of expiration, provided no changes have been made or will be made in the original plans and specifications for such work, and provided further that such suspension or abandonment under (a)(2) above has not exceeded one year. The fee for issuance of a renewed permit shall be one -half of the full permit fees (based upon the fee schedule adopted by the City Council as of the time the reinstated permit is issued) if the reinstated permit is applied for within 180 days after expiration of the prior permit. 91 (2) New Permit. A new permit may be issued following expiration of a building permit as follows. An applicant may apply for a new permit at any time so long as any underlying Design Review Approval, Use Permit, or other required planning approval remains effective. The full permit fee shall apply to the new permit (based upon the fee schedule adopted by the City Council as of the time the new permit is issued). (c) Notwithstanding the foregoing provisions, upon written request by the applicant showing, to the satisfaction of the building official, that the prior permit expired as a result of exceptional circumstances beyond the reasonable control of the applicant, the building official may waive or reduce the payment of a fee for issuance of the reinstated or new permit. (d) The building official may decline to issue more than one reinstatement of a building permit if in the judgment of the building official the work authorized by the original permit is not being diligently prosecuted to completion. The building official may also condition any reinstatement to assure diligent prosecution to completion or to prevent a nuisance. The building official may approve no more than two reinstatements of a building permit. (e) The building official may at any time exercise discretion to find that a building, structure, or work for which a building permit has expired qualifies as an unsafe building, structure, or work and proceed to abate any nuisance associated therewith. (f) Where: (i) a building permit has expired; and (ii) the building, structure, or other work authorized by such permit has not been completed; and (iii) no reinstated permit has been obtained within 180 days after expiration, then said building, structure, or work shall be conclusively presumed to be unsafe; abandoned; a hazard to the public health, safety, and welfare; and a public nuisance. (g) The building official is authorized to exercise discretion to abate any public nuisance regarding any unsafe building, structure, or work (including but not limited to one resulting under the preceding paragraph) by repair, rehabilitation, demolition, or removal thereof by: (1) Proceeding under the Building Code for the Abatement of Dangerous Buildings (Article 16 -45); or (2) Proceeding under the following alternative method of enforcement where a building, structure, or other work authorized by a building permit has not been completed within 36 months of the date of issuance of the original permit, the building official may abate such public nuisance by ordering and duly 92 enforcing repair, rehabilitation, demolition, or removal of the building, structure, or other work; or construction of a fence or wall around the building, structure, or work so as to obscure it from view; or construction of other structures or blockades to prevent access to the building, structure, or other work by animals or humans. 16.15 -040. Fees. (a) Subsection 109.2 of the Building Code is amended to read: 109.2 Fees. The City of Saratoga may prescribe fees to defray the cost of enforcement of rules and regulations promulgated by the Department of Housing and Community Development or set forth in the Building Code. The amount of such fees shall not exceed the amount reasonably necessary to administer or process permits, certificates, forms, or other documents or to defray the costs of enforcement and shall be established by resolution of the City Council. The payment of any fee shall not exempt any person from compliance with all other provisions of this code or the technical codes nor from any penalty prescribed by law. Permit Fees. The amount of the fees to be paid for each permit shall be established by resolution of the City Council. Investigation Fees. Whenever any work for which a permit is required by this code has been commenced without first obtaining said permit, a special investigation shall be made before a permit may be issued for such work. An investigation fee, in addition to the permit fee, shall be collected whether or not a permit is then or subsequently issued. The investigation fee shall be established by resolution of the City Council. Plan Review Fees. When a plan or other data are required to be submitted by Section 107.1 of the Building Code, a plan review fee shall be paid at the time of submitting plans and specifications for review. Said plan review fee shall be established by resolution of the City Council. Where plans are incomplete or changed so as to require additional plan review, an additional plan review fee shall be charged as established by resolution of the City Council. Expiration of Plan Review. Applications for which no permit is issued within 180 days following the date of application shall expire by limitation, and plans and other data submitted for review may thereafter be returned to the applicant or destroyed by the building official. The building official may extend the time for action by the applicant for a period not exceeding 180 days on request by the applicant showing that circumstances beyond the control of the applicant have prevented action from being taken. No application shall be extended more than once. In order to renew action on an application after expiration, the applicant shall resubmit plans and pay a new plan review fee. 93 Additional Fees. The City of Saratoga may prescribe any additional fees reasonably necessary to cover the cost of administering this Article. Such fees shall be set forth in the City of Saratoga Master Fee Schedule adopted by the City Council. 16.15 -045. Roof coverings. (a) Section 1505.1.3 of the Building Code is amended to read: Roof coverings within all other areas. The entire roof covering of every existing structure where more than 50 percent of the total roof area is replaced within any one -year period; the entire roof covering of every new structure; and any roof covering applied in the alteration, repair, or replacement of the roof of every existing structure shall be a fire - retardant roof covering that is at least Class A. (b) Section 1505.1.4 of the 2010 California Building Code is amended to read: Roofing coverings within the Wildland -Urban Interface Fire Area. The entire roof covering of every existing structure where more than 50 percent of the total roof area is replaced within any one -year period; the entire roof covering of every new structure; and any roof covering applied in the alteration, repair, or replacement of the roof of every existing structure shall be a fire - retardant roof covering that is at least Class A and must also comply with section 705A of the Building Code. 16- 15.050 Underside of appendages. (a) Section 707A.8 of the Building Code is amended to read: 707A.8 Underside of appendages. The underside of overhanging appendages shall be enclosed to grade in accordance with the requirements of Chapter 7 of the Building Code or the underside of the exposed underfloor shall consist of one of the following: 1. Noncombustible material; 2. Ignition- resistant material; 3. One layer of 5/8 -inch Type X gypsum sheathing applied behind an exterior covering on the underside of the floor projection; 4. The exterior portion of a 1 -hour fire resistive exterior wall assembly applied to the underside of the floor including assemblies using the gypsum panel and sheathing products listed in the Gypsum Association Fire Resistance Design Manual; or 5. The underside of a floor assembly that meets the performance criteria in accordance with the test procedures set forth in SFM Standard 12 -7A -3. Exception: Heavy timber structural columns and beams do not require protection. 16- 15.055 Accessory structures. (a) Sections 710A.3.1 and 710A.3.2 of the Building Code are deleted in their entirety. 91 (b) Section 710A.4 of the Building Code is amended to read: 710A.4 Requirements. Accessory structures shall be constructed of noncombustible or ignition- resistant materials. 16 -15 -060 Automatic Sprinkler Systems Section 903.2 of the Building Code is amended to read: 903.2 Where required. Approved automatic sprinkler systems in new and existing buildings and structures shall be provided in the locations described in this Section or in Sections 903.2.1 through 903.2.18 of the Building Code, whichever is the more restrictive. For the purposes of this section, firewalls and fire barriers used to separate building areas shall be constructed in accordance with the California Building Code and shall be without openings or penetrations. 1. In buildings other than residential buildings, which require the installation of fire sprinklers for all new buildings according to the California Residential Code, an automatic sprinkler system shall be provided throughout all new non - residential buildings and structures. Exceptions: a. Buildings and structures that do not exceed 1,000 square feet of building area and that are not located in the Wildland -Urban Interface Fire Area. b. Buildings and structures that are located in the Wildland -Urban Interface Fire Area and do not exceed 500 square feet of building area. c. Group S -2 or U occupancies that are not located in the Wildland -Urban Interface and are used exclusively for vehicle parking and that meet all of the following conditions: i. Noncombustible construction; ii. Maximum building area does not exceed 5,000 square feet; iii. Structure is open on three (3) or more sides; and iv. Minimum of 10 feet separation from existing buildings unless area is separated by fire walls complying with Section 706 of the Building Code. 2. An automatic sprinkler system shall be provided throughout existing buildings and structures when alterations or additions are made that create conditions described in Sections 903.2.1 through 903.2.18 of the Building Code. 95 3. An automatic sprinkler system shall be provided throughout existing buildings and structures when additions are made that increase the building area to more than 3,600 square feet. Exception: One or more additions made to a building after January 1, 2011, that do not total more than 1,000 square feet of building area. 4. An automatic sprinkler system shall be provided throughout all new basements regardless of size and throughout existing basements that are expanded by more than 50 %. 5. Any change in the character of occupancy or in use of any building with a building area equal to or greater than 3,600 square feet that, in the opinion of the fire code official or building official, would place the building into a more hazardous division of the same occupancy group or into a different group of occupancies and constitutes a greater degree of life safety or increased fire risk, as defined herein, shall require the installation of an approved fire automatic fire sprinkler system. a. Life Safety — Increased occupant load, public assembly areas, public meeting areas, churches, indoor amusement attractions, buildings with complex exiting systems due to increased occupant loads, large schools /day -care facilities, large residential care facilities with non - ambulatory patients. b. Fire Risks — High -piled combustible storage, woodworking operations, hazardous operations using hazardous materials, increased fuel loads (storage of moderate to highly combustible materials), increased sources of ignition (welding, automotive repair with the use of flammable liquids and open flames). 16- 18.010 Adoption of 2013 California Residential Building Code. (a) The 2013 California Residential Building Code, Title 24 part 2.5, , referred to throughout this Chapter as the "Residential Building Code," is hereby referred to and, except as to additions, deletions, and amendments hereinafter noted, such code is hereby adopted and made a part hereof, the same as if fully set forth in this article, and shall be the Residential Building Code of the City. However, in accordance with California Government Code Section 50222.4, no penalty clauses are adopted by reference. In accordance with California Health and Safety Code Section 17958.7, express findings that modifications to the California Building Standards Code are reasonably necessary because of local climatic, geological, or topographical conditions a are either already on file with the California Building Standards Commission or will be filed prior to the effective date of the ordinance codified in this Article. (b) In accordance with California Government Code Section 50022.6, at least one true copy of the Residential Building Code has been on file with the City Clerk since fifteen days prior to enactment of the ordinance codified in this Article. While the ordinance codified in this Article is in force, a true copy of the Residential Building Code shall be kept for public inspection in the office of the Residential Building Official. A reasonable supply of the Residential Building Code shall be available in the office of the City Clerk for public purchase. (c) The additions, deletions, and amendments set forth in this Article are made to the Residential Building Code, as adopted by reference in Section 16- 18.010(a). 16- 18.020 Enforcement of Title 24 of the California Code of Regulations. (a) Title 24 of the California Code of Regulations, also known as the California Building Standards Code, is in effect in the City of Saratoga as amended by this Article. The provisions of Title 24 that are not adopted by reference or amended by this Article are enforced by the City of Saratoga as laws of the State. 16- 18.025 Automatic sprinklers. (a) Section R313.1 is amended to read: R313.1 Townhouse automatic fire sprinkler systems. An automatic residential fire sprinkler system shall be installed in all new townhouses and in existing townhouses when additions are made that increase the building area to more than 3,600 square feet. Exception: One or more additions made to a building after January 1, 2011, that do not total more than 1,000 square feet of building area. (b) Section R313.2 is amended to read: R313.2 One- and two - family dwellings automatic fire sprinkler systems. An automatic residential fire sprinkler system shall be installed in one- and two - family dwellings as follows: 1. In all new one- and two - family dwellings and in existing one- and two - family dwellings when additions are made that increase the building area to more than 3,600 square feet. Exception: One or more additions made to a building after January 1, 2011, that do not total more than 1,000 square feet of building area. 2. In all new basements and in existing basements that are expanded. Exception: Existing basements that are expanded by not more than 50 %. 97 16- 18.030 Material and construction methods for exterior wildfire exposure. (a) Section R327.7.9 "Underside of appendages" is amended as follows: Delete "When required by the enforcing agency." (b) Section R327.10.3.2 is deleted in its entirety. (c) Section R327.10.4 is amended as follows: Delete "When required by the enforcing agency." 16- 18.035 Seismic reinforcing. (a) Section R403.1.3 is amended to read: R403.1.3 Seismic reinforcing. Concrete footings located in Seismic Design Categories D0, D1, and D2, as established in Table R301.2(1) of the Residential Building Code, shall have minimum reinforcement of at least two continuous longitudinal reinforcing bars, one top and one bottom and not smaller than No. 4 bars. Bottom reinforcement shall be located a minimum of 3 inches (76 mm) clear from the bottom of the footing. In Seismic Design Categories D0, D1, and D2, where a construction joint is created between a concrete footing and a stem wall, a minimum of one No. 4 bar shall be installed at not more than 4 feet (1,219 mm) on center. The vertical bar shall extend to 3 inches (76 mm) clear of the bottom of the footing, have a standard hook, and extend a minimum of 14 inches (357 mm) into the stem wall. In Seismic Design Categories D0, D1, and D2, where a grouted masonry stem wall is supported on a concrete footing and stem wall, a minimum of one No. 4 bar shall be installed at not more than 4 feet (1,219 mm) on center. The vertical bar shall extend to 3 inches (76 mm) clear of the bottom of the footing and have a standard hook. In Seismic Design Categories D0, D1, and D2 masonry stem walls without solid grout and vertical reinforcing are not permitted. Exception: In detached one- and two - family dwellings that are three stories or less in height and constructed with stud bearing walls, isolated plain concrete footings supporting columns or pedestals are permitted. 16- 18.040 Limits on methods Gypsum Board (GB) and Portland Cement Plaster (PCP) (a) Table R602.10.3 (3) is amended as follows: Add a new footnote "e" to the end of Table R602.10.3 (3), to read: e. In Seismic Design Categories D0, D1, and D2, Method GB is not permitted and the use of Method PCP is limited to one -story single family dwellings and accessory structures. Add the "e" footnote notation in the title of Table R602.10.3 (3) to read: TABLE R602.10.3 (3)e (b) Section R602.10.4.4 is added to read: R602.10.4.4 Limits on methods GB and PCP. In Seismic Design Categories D0, D1, and D2, Method GB is not permitted for use as intermittent braced wall panels, but gypsum board is permitted to be installed when required by this Section to be placed on the opposite side of the studs from other types of braced wall panel sheathing. In Seismic Design Categories D0, D1, and D2, the use of Method PCP is limited to one - story single family dwellings and accessory structures. 16- 18.045 Roof classification. (a) Section R902.1.3 is amended to read: R902.1.3 Roof coverings in all other areas. The entire roof covering of every existing structure where more than 50 percent of the total roof area is replaced within any one - year period; the entire roof covering of every new structure; and any roof covering applied in the alteration, repair, or replacement of the roof of every existing structure shall be a fire - retardant roof covering that is at least Class A. (b) Section R902.1.4. is amended to read: R902.1.4.1 Roofing coverings within the Wildland -Urban Interface Fire Area. The entire roof covering of every existing structure where more than 50 percent of the total roof area is replaced within any one -year period; the entire roof covering of every new structure; and any roof covering applied in the alteration, repair, or replacement of the roof of every existing structure shall be a fire - retardant roof covering that is at least Class A. 16- 20.010 - Adoption of the California Fire Code and International Fire Code. The 2013 California Fire Code, Title 24 part 9, and the 2012 International Fire Code, including Appendix Chapters B, C, and K are referred to and, except as to additions, deletions, and amendments hereinafter noted, are adopted and made a part hereof, the same as if fully set forth in this Article. The California Fire Code and the International Fire Code as adopted herein are hereinafter referred to collectively as the "Fire Code." However, in accordance with California Government Code Section 50222.4, no penalty clauses are adopted by reference. In accordance with California Health and Safety Code Section 17958.7, express findings that modifications to the California Building Standards Code are reasonably necessary because of local climatic, geological or topographical conditions are either already on file with the California Building Standards Commission, or will be filed prior to the effective date of the ordinance codified in this Article. In accordance with California Government Code Section 50022.6, at least one true copy of the Fire Code has been on file with the City Clerk since fifteen days prior to enactment of the ordinance codified in this Article. While the ordinance codified in this Article is in .. force, a true copy of the Fire Code shall be kept for public inspection in the office of the City Building Official and the Chief. A reasonable supply of the Fire Code shall be available in the office of the City Clerk for public purchase. 16- 20.015 Enforcement of Title 24 of the California Code of Regulations. Pursuant to the laws of the State of California, Title 24 of the California Code of Regulations, also known as the California Building Standards Code, applies to all construction in the State of California and is enforced by the City of Saratoga in accordance with State law. This and other Articles of Chapter 16 of the Saratoga Code adopt certain provisions of Title 24 by reference and make revisions to reflect local climatic, geological, or topographical conditions. The provisions of Title 24 that are not adopted by reference or amended by this Article remain in effect as laws of the State. 16- 20.020 - Fire Department and Chief. Fire protection is provided in the City of Saratoga by the Santa Clara County Fire Department and the Saratoga Fire District. As used in the Fire Code, "Fire Department" refers to the Fire Department that provides fire protection to the relevant location, and "Chief" or "Fire Code Official" refers to the Chief of that Fire Department. 16- 20.025 - Amendments to Chapter 57 of the Fire Code; Class I and Class II liquids. Flammable and Combustible Liquids. (a) Establishment of limits of districts in which storage of flammable or combustible liquids in outside aboveground tanks is prohibited. The limits referred to in Section 5704.2.9.6.1 of said Fire Code, in which the storage of flammable or combustible liquids in aboveground tanks is prohibited, are established as to all locations within the City of Saratoga that are residential or congested commercial areas as determined by the Fire Code Official. (b) Establishment of limits of districts in which storage of flammable or combustible liquids in aboveground tanks is prohibited. The limits referred to in Section 5706.2.4.4 of said Fire Code, in which the storage of flammable or combustible liquids in aboveground tanks is prohibited, are established as to all locations of the City of Saratoga that are residential or other locations as determined by the Fire Code Official. 16- 20.030 - Amendments to Chapter 58 of the Fire Code; Cryogenic Fluids. (a) Establishment of limits of districts in which the storage of stationary tanks of flammable cryogenic fluids are to be prohibited. The limits referred to in Section 5806.2 of said Fire Code, in which the storage of flammable cryogenic fluids in stationary containers is prohibited, are established as to all 100 locations of the City of Saratoga that are residential and congested commercial areas as determined by the Fire Code Official. 16- 20.040 - Amendments to Chapter 61 of the Fire Code; Liquefied Petroleum Gases. (a) Establishment of limits in which storage of liquefied petroleum gases is prohibited. The limits referred to in Section 6104.2 of said Fire Code, in which storage of liquefied petroleum gas (LPG) is restricted, are established as to all locations within the City of Saratoga that are residential or congested commercial areas as determined by the Fire Code Official. Exceptions: LPG may be used for industrial operations or when natural gas would not provide a viable substitute for LPG. Portable containers for temporary heating and /or cooking uses may be permitted if stored and handled in accordance with this Code. Facilities in commercial areas for refueling portable or mobile LPG containers may be approved by the Fire Code Official on a case by case basis. 16- 20.050 - Amendments to Chapter 1, Division II of the Fire Code; Administration. Section [A] 105.1.4 is added as follows: [A] 105.1.4 Construction permit fees. Construction permit fees and plan review fees for fire hydrant systems, fire extinguishing systems and fire alarm systems shall be paid to the Fire Department in accordance with the following table based on valuation. The valuation shall be limited to the value of the system for which the permit is being issued. Plan review fees are 65% of the Permit Fee amount. For the purposes of determining the total fee amount for each permit, the plan review fee shall be added to the Permit Fee. TOTAL VALUATIONS PERMIT FEE $1.00 TO $500.00 $23.50 $501.00 TO $2,000.00 $23.50 for the first $500.00 plus $3.05 for each additional $100.00, or fraction thereof, to and including $2,000.00 $2001.00 TO $25,000.00 $69.25 for the first $2,000.00 plus $14.00 for each additional $1,000.00 or fraction thereof, to and including $25,000.00 $25,001.00 TO $50,000.00 $391.25 for the first $25,000.00 plus $10.10 for each additional$ 1,000.00, or fraction thereof, to and including $50,000.00 $50,001.00 TO $100,000.00 $643.75 for the first $50,000.00 plus $7.00 for each additional$1,000.00, or fraction thereof, to and including $100,000.00 $100,001.00 to $500,000.00 $993.75 for the first $100,000.00 plus $5.60 for each additional$1,000.00, or fraction 101 Additional re- inspections, in connection with the permits above, are to be paid at $50.00 for each occurrence at the discretion of the fire code official. Section [A] 105.1.5 is added as follows: [A] 105.1.5 Operational permit fees. Operational permit fees shall be paid to the Fire Department as follows: FACILITY TYPE thereof, to and including $500,000.00 $500,001 to $1,000,000.00 $3,233.75 for the first $500,000.00 plus A. More than 6 persons $4.75 for each additional$ 1,000.00, or fraction B. Over 50 persons thereof, to and including $1,000,000.00 $1,000,001 and up $5,608.75 for the first More than 6 clients $1,000,000.00 plus $3.15 for each 3. Places of Assembly additional$ 1, 000.00, or fraction thereof Additional re- inspections, in connection with the permits above, are to be paid at $50.00 for each occurrence at the discretion of the fire code official. Section [A] 105.1.5 is added as follows: [A] 105.1.5 Operational permit fees. Operational permit fees shall be paid to the Fire Department as follows: FACILITY TYPE PERMIT FEE 1. Institutional A. More than 6 persons $75.00 - Annually B. Over 50 persons $100.00 - Annually 2. Day Care Facilities More than 6 clients $35.00 - Annually 3. Places of Assembly A. 50 -300 persons $50.00 - Annually B. Over 300 persons $85.00 - Annually 4. Temporary Membrane Structures, Tents and Canopies(Only those requiring permits in accordance with Section 105.6.43) $85.00 — Each occurrence Section [A] 105.6.48 is added as follows: [A] 105.6.48 Day care facility. An operational permit is required to operate a business as a day care facility for more than 6 people. Section [A] 105.6.49 is added as follows: [A] 105.6.49: Institutional. A permit is required to operate, maintain, or use any institutional type occupancy. For the purpose of this Section, an institution shall be, but is not limited to: hospitals, children's homes, homes or institutions for insane or mentally retarded persons, homes or institutions for the care of aged or senile persons, sanitariums, nursing or convalescent homes, certified family care homes, residential care homes for the elderly, out of home placement facilities, halfway houses, and day care nurseries or similar facilities of any capacity. Section [A] 106.5 is added as follows: [A] 106.5 Final Inspection. No final inspection as to all or any portion of a development shall be deemed completed until the installation of the required fire protection facilities and access ways have been completed and approved. No finiu5ertificate of occupancy may be granted until the Fire Department issues notice of final clearance of such fire protection facilities and access ways to the Building Department. Section [A] 109.4 is amended to read as follows: [A] 109.4 Violation Penalties. Persons who shall violate a provision of this code or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this code, shall be guilty of a misdemeanor punishable by a fine of not more than $1,000.00 or by imprisonment not exceeding 365 days or both such fine and imprisonment. Each day that a violation continues after due notice has been served shall be deemed a separate offense. [A] 109.4.1 Abatement of Violation. In addition to the imposition of the penalties herein described, the fire code official is authorized to institute appropriate action to prevent unlawful construction or to restrain, correct, or abate a violation; or to prevent illegal occupancy of a structure or premises; or to stop an illegal act, conduct of business, or occupancy of a structure on or about any premises. [A] 109.4.2 Abatement of Hazard. (a) The maintenance of real property in violation of this code, or of any order of the Fire Department pursuant hereto, is declared to be a public nuisance and is subject to abatement in accordance with Article 3 -15 of the Saratoga Municipal Code. (b) Notwithstanding paragraph (a) of this Section, if real property is maintained in violation of this code or any order of the Fire Department pursuant hereto and such violation constitutes, in the opinion of the Fire Chief, a fire hazard of such a nature that immediate action is required to protect the public health, safety, and welfare, the Fire Department may apply the emergency nuisance abatement procedure set forth in Article 3 -20 of the Saratoga Municipal Code and take all necessary and immediate steps to abate the hazard without prior notice to the owner or occupant of the property. In such an event, the Fire Chief shall perform the duties of the City Manager as described in Article 3 -20. (c) The cost of any abatement may be collected through the levy of a special assessment in accordance with the applicable provisions of Article 3 -15 or Article 3 -20 of the Saratoga Municipal Code. Such procedure is not intended to be exclusive, and the City or the Fire Department may simultaneously or successively exercise any other rights and remedies provided by law. 16- 20.060 - Amendments to Chapter 2 of the Fire Code; Definitions Chapter 2 DEFINITIONS SECTION 202 GENERAL DEFINITIONS 103 Amend the following definition to read: CONTINUOUS GAS DETECTION SYSTEM. An approved gas detection system where the analytical instrument is maintained in continuous operation and sampling is performed without interruption. Analysis is allowed to be performed on a cyclical basis at intervals not to exceed 30 minutes. In occupied areas where air is re- circulated and not exhausted to a treatment system (e.g. breathing zone), the Chief may require a cyclical basis at intervals not to exceed 5 minutes. The gas detection system shall be able to detect the presence of a gas at or below the permissible exposure limit in occupiable areas and at or below 1/2 IDLH (or 0.05 LC 50 if no established IDLH) in unoccupiable areas. 16- 20.070 - Amendments to Chapter 3 of the Fire Code; General Precautions Against Fire. SECTION 311 VACANT PREMISES Section 311.1 is amended to read: 311.1 General. Temporarily unoccupied buildings, structures, premises or portions thereof, including tenant spaces, shall be safeguarded and maintained in accordance with Sections 311.1 through 311.4 SECTION 316 HAZARDS TO FIRE FIGHTERS Section 316.7 is added as follows: 316.7 Roof Guardrails At Interior Courts. Roof openings into interior courts that are bounded on all sides by building walls shall be protected with guardrails. The top of the guardrail shall not be less than 42 inches in height above the adjacent roof surface that can be walked on. Intermediate rails shall be designed and spaced such that a 12 -inch diameter sphere cannot pass through. Exception: Where the roof opening is greater than 600 square feet in area 16- 20.080 - Chapter 4 of the Fire Code Not Adopted; Emergency Planning and Preparedness. Chapter 4 of the 2013 California Fire Code is not adopted. 16- 20.090 - Amendments to Chapter 5 of the Fire Code; Fire Service Features. SECTION 503 FIRE APPARATUS ACCESS ROADS 104 Section 503.1 is amended to read: 503.1 Where required. Fire apparatus access roads shall be provided and maintained in accordance with Sections 503.1.1 through 503.1.2 and as per Fire Department Access Road Standards. Section 503.2.1 is amended to read: 503.2.1 Dimensions. Fire apparatus access roads shall have an unobstructed width of not less than 20 feet (6096 mm), exclusive of shoulders, except for approved security gates in accordance with Section 503.6, and an unobstructed vertical clearance of 13 feet 6 inches (4115 mm). Exception: Where there are not more than two Group R, Division 3, or Group U occupancies, the access road width may be modified by the Fire Code Official. SECTION 504 ACCESS TO BUILDING OPENINGS AND ROOFS Section 504.5 is added as follows: 504.5 Access Control Devices. When access control devices including bars, grates, gates, electric or magnetic locks or similar devices, which would inhibit rapid fire department emergency access to or within the building, are installed, such devices shall be approved by the Fire Code Official. All electrically powered access control devices shall be provided with an approved means for deactivation or unlocking from a single location or otherwise approved by the Fire Department. Access control devices shall also comply with Chapter 10 Egress. SECTION 510 EMERGENCY RESPONDER RADIO COVERAGE Section 510. 1.1 is added as follows: 510.1.1 Obstruction by new buildings. When it is determined that a new structure obstructs the line of sight emergency radio communications to existing buildings or to any other locations, the developer of the structure shall provide and install the radio retransmission equipment necessary to restore communications capabilities. The equipment shall be located in an approved space or area within the new structure. 16- 20.100 - Amendments to Chapter 6 of the Fire Code; Building Services and Systems. Section 605.12 is added : 605.12 Immersion Heaters. 105 All electrical immersion heaters used in dip tanks, sinks, vats and similar operations shall be provided with approved over - temperature controls and low liquid level electrical disconnects. Manual reset of required protection devices shall be provided. Section 608.6.4 is added as follows: 608.6.4 Failure of Ventilation System. Failure of the ventilation system shall automatically disengage the charging system. 16- 20.110 - Amendments to Chapter 8 of the Fire Code; Interior Finish, Decorative Materials and Furnishings. Section 806.1.1 is amended to readas follows: Display inside buildings. The display of Christmas trees and other decorative vegetation shall be in accordance with the California Code of Regulations, Title 19, Division 1, §3.08 and Sections 806.1 through 806.5. Exceptions: 1. Trees located in areas protected by an approved automatic sprinkler system in accordance Section 903.1.1 or 903.3.1.2 shall not be prohibited in Groups A, E, M, R -1 and R -2. 2. Trees shall be allowed within dwelling units in Group R -2 occupancies. 16- 20.120 - Amendments to Chapter 9 of the Fire Code; Fire Protection Systems. Section 903.2 is amended to read: 903.2 Where required. Approved automatic sprinkler systems in new and existing buildings and structures shall be provided in the locations described in this Section or in Sections 903.2.1 through 903.2.18, whichever is the more restrictive. For the purposes of this section, firewalls and fire barriers used to separate building areas shall be constructed in accordance with the California Building Code and shall be without openings or penetrations. 1. In buildings other than residential buildings, which require the installation of fire sprinklers for all new buildings according to the California Residential Code, an automatic sprinkler system shall be provided throughout all new buildings and structures. Exceptions: a. Buildings and structures that do not exceed 1,000 square feet of building area and that are not located in the Wildland -Urban Interface Fire Area. b. Buildings and structures that are located in the Wildland -Urban Interface Fire Area and do not exceed 500 square feet of building area. 106 c. Group S -2 or U occupancies that are not located in the Wildland -Urban Interface and used exclusively for vehicle parking and meeting all of the following conditions: i. Noncombustible construction; ii. Maximum building area not to exceed 5,000 square feet; iii. Structure is open on three (3) or more sides; and iv. Minimum of 10 feet separation from existing buildings unless area is separated by fire walls complying with CBC 706. 2. An automatic sprinkler system shall be provided throughout existing buildings and structures when alterations or additions are made that create conditions described in Sections 903.2.1 through 903.2.18. 3. An automatic sprinkler system shall be provided throughout existing buildings and structures, when additions are made that increase the building area to more than 3,600 square feet. Exception: One or more additions made to a building after January 1, 2011, that do not total more than 1,000 square feet of building area. 4. An automatic sprinkler system shall be provided throughout all new basements regardless of size and throughout existing basements that are expanded by more than 50 %. 5. Any change in the character of occupancy or in use of any building with a building area equal to or greater than 3,600 square feet that, in the opinion of the fire code official or building official, would place the building into a more hazardous division of the same occupancy group or into a different group of occupancies and constitutes a greater degree of life safety or increased fire risk, as defined herein, shall require the installation of an approved fire automatic fire sprinkler system. a. Life Safety— Increased occupant load, public assembly areas, public meeting areas, churches, indoor amusement attractions, buildings with complex exiting systems due to increased occupant loads, large schools /day -care facilities, large residential care facilities with non - ambulatory b. Fire Risks — High -piled combustible storage, woodworking operations, hazardous operations using hazardous materials, increased fuel loads (storage of moderate to highly combustible materials), increased sources of ignition (welding, automotive repair with the use of flammable liquids and open flames). 16- 20.130 — Amendments to Chapter 28 of the Fire Code; Lumber Yards and Woodworking Facilities. SECTION 2803 GENERAL REQUIREMENTS 107 Section 2803.8 is added as follows: 2803.8 Fire Protection Water Supply System. An approved fire protection water supply and hydrant system suitable for the fire hazard involved shall be provided for open storage yards and processing areas. Hydrant systems shall be installed in accordance with National Fire Protection Association Standard 24. 16- 20.140 — Amendments to Chapter 33 of the Fire Code; Fire Safety During Construction and Demolition. SECTION 3304 PRECAUTIONS AGAINST FIRE Section 3304.8 is added as follows: 3304.8 Fire Walls. When firewalls are required, the wall construction shall be completed (with all openings protected) immediately after the building is sufficiently weather - protected at the location of the wall(s). SECTION 3311 MEANS OF EGRESS Section 3311.1 is amended to read: [B] 3311.1 Stairways Required. Each level above the first story in multi -story buildings that require two exit stairways shall be provided with at least two usable exit stairways after the floor decking is installed. The stairways shall be continuous and discharge to grade level. Stairways serving more than two floor levels shall be enclosed (with openings adequately protected) after exterior walls /windows are in place. Exit stairs in new and in existing, occupied buildings shall be lighted and maintained clear of debris and construction materials at all times. Exception: For multi -story buildings, one of the required exit stairs may be obstructed on not more than two contiguous floor levels for the purposes of stairway construction (i.e., installation of gypsum board, painting, flooring, etc.). Section 3311. 1.1 is added as follows: Section 3311.1.1 Required Means Of Egress. All buildings under construction shall have at least one unobstructed means of egress. All means of egress shall be identified in the prefire plan as set forth in Section 3308.2 of the Fire Code. IS 16- 20.150 - Amendments to Chapter 49 of the Fire Code; Requirements For Wildland - Urban Interface Fire Areas. Section 4902 as followsis amended to read: SECTION 4902 DEFINITIONS Amend definition of Wildland -Urban Interface Fire Area as follows: Wildland -Urban Interface Fire Area is a geographical area identified by the state as a "Fire Hazard Severity Zone" in accordance with the Public Resources Code Sections 4201 through 4204 and Government Code Sections 51175 through 51189 or other areas designated by the enforcing agency to be at a significant risk from wildfires. The Wildland -Urban Interface Fire Area shall be defined as all areas within the City of Saratoga as set forth and delineated on the map entitled "Wildland -Urban Interface Fire Area," which map and all notations, references, data, and other information shown thereon are hereby adopted and made a part of this chapter. The map properly attested, shall be on file in the Office of the City Clerk of the City of Saratoga. SECTION 4906 HAZARDOUS VEGETATION AND FUEL MANAGEMENT Section 4906.2 is amended to read: Application. Buildings and structures located in the following areas shall maintain the required hazardous vegetation and fuel management: 1. All unincorporated lands designated by the State Board of Forestry and Fire Protection as State Responsibility Areas (SRA) including: 1.1. Moderate Fire Hazard Severity Zones 1.2. High Fire Hazard Severity Zones 1.3. Very -high Fire Hazard Severity Zones 2. Land designated as a Very -high Fire Hazard Severity Zone or as a Wildland Urban Interface Fire Area by the City of Saratoga. SECTION 4907 DEFENSIBLE SPACE Amend Section 4907.1 to read: 4907.1 General. Defensible space will be maintained around all buildings and structures in Sate Responsibility Area (SRA) as required in Public Resources Code 4290 and "SRA Fire Safe Regulations" California Code of Regulations, Title 14, Division 1.5, Chapter 7, Subchapter 2, Section 1270. Buildings and structures within the Very -High Fire Hazard Severity Zones of a Local Responsibility Area (LRA) shall maintain defensible space as outlined in Government Code 51175 — 51189 and any local ordinance of the authority having jurisdiction. Defensible space shall also be provided around water tank structures, water supply pumps and pump houses. Persons owning, leasing, controlling, operating or maintaining buildings or structures in the locally adopted Wildland -Urban Interface Fire Area but that are not within the Very - High Fire Hazard Severity Zone and persons owning, leasing or controlling land adjacent to such buildings or structures, shall at all times: 1. Maintain an effective defensible space by r�Wving and clearing away flammable vegetation and combustible growth from areas within 30 feet (9144 mm) of such buildings or structures. Exception: Single specimens of trees, ornamental shrubbery or similar plants used as ground covers, provided that they do not form a means of rapidly transmitting fire from the native growth to any structure. 2. Maintain additional effective defensible space by removing brush, flammable vegetation and combustible growth located 30 feet to 100 feet (9144 mm to 30480 mm) when required by the fire code official due to steepness of terrain or other conditions that would cause a defensible space of only 30 feet (9144 mm) to be insufficient. Exception: Grass and other vegetation located more than 30 feet (9144 mm) from buildings or structures and less than 18 inches (457 mm) in height above the ground need not be removed where necessary to stabilize the soil and prevent erosion. 3. Remove portions of trees, which extend within 10 feet (3048 mm) of the outlet of a chimney. 4. Maintain trees adjacent to or overhanging a building free of deadwood; and 5. Maintain the roof of a structure free of leaves, needles or other dead vegetative growth. 6. Remove flammable vegetation a minimum of 30 feet around liquefied petroleum gas tanks /containers. 7. Firewood and combustible materials shall not be stored in unenclosed spaces beneath buildings or structures, or on decks or under eaves, canopies or other projections or overhangs. The storage of firewood and combustible material within 19 the defensible space shall be located a minimum of 30 feet (6096 mm) from structures and separated from the crown of trees by a minimum horizontal distance of 15 feet (4572 mm). Exception: Firewood and combustible materials not for consumption on the premises shall be stored as approved by the fire code official. 8. Clear areas within 10 feet (3048 mm) of fire apparatus access roads and driveways of non - fire - resistive vegetation growth. Exception: Single specimens of trees, ornamental vegetative fuels or cultivated ground cover, such as greengrass, ivy, succulents or similar plants used as ground cover, provided they do not form a means of readily transmitting fire. Section 4907.2 is added as follows: Corrective Actions. The executive body is authorized to instruct the Fire Code Official to give notice to the owner of the property upon which conditions regulated by Section 4907.1 of the Fire Code exist to correct such conditions. If the owner fails to correct such conditions, the executive body is authorized to cause the same to be done and make the expense of such correction a lien upon the property where such conditions exist. 110 Section 4908 is added as follows: SECTION 4908 FIRE PROTECTION PLAN General. When required by the code official, a fire protection plan shall be prepared. Content. The plan shall be based upon a site - specific wildfire risk assessment that includes considerations of location, topography, aspect, flammable vegetation, climatic conditions, and fire history. The plan shall address water supply, access, building ignition and fire - resistance factors, fire protection systems and equipment, defensible space, and vegetation management. Cost. The cost of fire protection plan preparation and review shall be the responsibility of the applicant. Plan Retention. The fire protection plan shall be retained by the Fire Code Official . Section 4909 is added as follows: SECTION 4909 WATER SUPPLY General. Buildings and structures, or portions thereof, hereafter constructed or relocated into or within the Wildland -Urban Interface Fire Area shall be provided with fire protection water supplies in accordance with Chapter 5 and Section 4909.2 of the Fire Code. Exception: Agricultural buildings and buildings containing only private garages, carports, or sheds with a building area of not more than 500 square feet (56 m2). Standby Power. Stationary water supply facilities within the wildland -urban interface area that are dependent on electrical power to meet adequate water supply demands shall provide standby power systems in accordance with the Electrical Code to ensure that an uninterrupted water supply is maintained. The standby power source shall be capable of providing power for a minimum of two hours. Exceptions: 1. When approved by the Fire Code Official , a standby power supply is not required where the primary power service to the stationary water supply facility is underground. 2. A standby power supply is not required where the stationary water supply facility serves no more than one single - family dwelling. Section 4910 is added as follows: 111 SECTION 4910 IGNITION SOURCE CONTROL 4910.1 Fireworks. Fireworks shall not be used or possessed in the Wildland -Urban Interface Fire Area. 16- 20.160 - Amendments to Chapter 50 of the Fire Code; Hazardous Materials - General Provisions. Section 5003.9.11 is added to the Fire Code as follows: 5003.9.11 Fire Extinguishing Systems for Workstations Dispensing, Handling, or Using Hazardous Materials. Combustible and non - combustible workstations, which dispense, handle, or use hazardous materials, shall be protected by an approved automatic fire extinguishing system in accordance with Section 2703.10. Exception: Internal fire protection is not required for Biological Safety Cabinets that carry NSF /ANSI certification where quantities of flammable liquids in use or storage within the cabinet do not exceed 500 ml. 16- 20.170 - Amendments to Chapter 56 of the Fire Code; Explosives and Fireworks. Chapter 56 of the 2013 California Fire Code is not adopted with the exception of the following Sections: Section 5601.1 is adopted and amended to read: Scope. For explosives requirements, see California Code of Regulations, Title 19, Division 1, Chapter 10 and section 5601.2 of this chapter. For fireworks requirements, see California Code of Regulations, Title 19, Division 1, Chapter 6 and section 5601.3 of this chapter. For small arms ammunition, see Section 5601.5 of this chapter. Exceptions: 1. The Armed Forces of the United States, Coast Guard, or National Guard. 2. Explosives in forms prescribed by the official United States Pharmacopoeia. 3. The use of explosive materials by federal, state, and local regulatory, law enforcement, and fire agencies acting in their official capacities. 4. Items preempted by federal regulations. Section 5601.2 is added as follows: 112 Explosives. The possession, manufacture, storage, sale, handling, and use of explosives are prohibited. Section 5601.3 is added as follows: Fireworks. The possession, manufacture, storage, sale, handling, and use of fireworks, including those fireworks classified as Safe and Sane by the California State Fire Marshal, are prohibited. Exceptions: 1. Storage, handling and use of fireworks and pyrotechnic special effects outside of buildings when used for public or proximate audience displays, motion picture, television, theatrical and group entertainment productions and when in accordance with Title 19 of the California Code of Regulations. 2. Storage, handling and use of pyrotechnic special effects fireworks inside of buildings when used for proximate audience displays or special effects in theatrical, television, motion picture and group entertainment productions when in accordance with Title 19 of the California Code of Regulations and when in buildings equipped throughout with an approved fire sprinkler system. Section 5601.4 is added as follows: Rocketry. The storage, handling, and use of model rockets shall be in accordance with Title 19 of the California Code of Regulations and as approved by the fire code official. Add Sections 5601.5 through 5601.5.3.2.3 to read: 5601.5 Small Arms Ammunition - General. Indoor storage and display of black powder, smokeless propellants and small arms ammunition shall comply with Sections 5601.5.1 through 5601.5.4.2.3. 5601.5.1 Packages. Smokeless propellants shall be stored in approved shipping containers conforming to DOTn 49 CFR, Part 173. 5601.5.1.1 Repackaging. The bulk repackaging of smokeless propellants, black powder and small arms primers shall not be performed in retail establishments. 5601.5.1.2 Damaged packages. Damaged containers shall not be repackaged. Exception: Approved repackaging of damaged containers of smokeless propellant into containers of the same type and size as the original container. 5601.5.2 Storage in Group R occupancies. The storage of small arms ammunition in Group R occupancies shall comply with Sectiq)mg 5601.5.2.1 through 5601.5.2.3. 5601.5.2.1 Smokeless propellants. Smokeless propellants intended for personal use in quantities not exceeding 20 pounds (9 kg) are permitted to be stored in Group R -3 occupancies where kept in original containers. Smokeless powder in quantities exceeding 20 pounds (9 kg) but not exceeding 50 pounds (23 kg) are permitted to be stored in Group R -3 occupancies where kept in a wooden box or cabinet having walls of at least 1 inch (25 mm) nominal thickness. 5601.5.2.2 Black powder. Black powder intended for personal use in quantities not exceeding 20 pounds (9 kg) are permitted to be stored in Group R -3 occupancies where kept in original containers and stored in a wooden box or cabinet having walls of at least 1 inch (25 mm) nominal thickness 5601.5.2.3 Small arms primers. No more than 10,000 small arms primers shall be stored in Group R -3 occupancies. 5601.5.3 Display and storage in Group M occupancies. The display and storage of small arms ammunition in Group M occupancies shall comply with Sections 5601.5.3.1 through 5601.5.3.2.3. 5601.5.3.1 Display. The display of small arms ammunition in Group M occupancies shall comply with Sections 5601.5.3.1.1 through 5601.5.3.1.3. 5601.5.3.1.1 Smokeless propellant. No more than 20 pounds (9 kg) of smokeless propellants, each in containers of 1 pound (0.454 kg) or less capacity, shall be displayed in Group M occupancies. 5601.5.3.1.2 Black powder. No more than 1 pound (0.454 kg) of black powder shall be displayed in Group M occupancies. 5601.5.3.1.3 Small arms primers. No more than 10,000 small arms primers shall be displayed in Group M occupancies. 5601.5.3.2 Storage. The storage of small arms ammunition in Group M occupancies shall comply with Sections 5601.5.3.2.1 through 5601.5.3.2.3. 5601.5.3.2.1 Storage of Smokeless propellant. Commercial stocks of smokeless propellants not on display shall not exceed 100 pounds (45 kg). Quantities exceeding 20 pounds (9 kg), but not exceeding 100 pounds (45 kg) shall be stored in portable wooden boxes having walls of at least 1 inch (25 mm) nominal thickness. 5601.5.3.2.2 Black powder. Commercial stocks of black powder not on display shall not exceed 50 pounds (23 kg) and shall be stored in a type 4 indoor magazine. When black powder and smokeless propellants are stored together in the same magazine, the total quantity shall not exceed that permitted for black powder. 5601.5.3.2.3 Small arms primers. Commercial stocks of small arms primers not on display shall not exceed 750,000. Storage shall be arranged such that not more than 100,000 small arms primers are stored in any one pile and piles are at least 15 feet (4572 mm) apart. 114 16- 20.180 - Amendments to Chapter 57 of the Fire Code; Flammable and Combustible Liquids. SECTION 5704 STORAGE Section 5704.2.7.5.8 is amended to read: Overfill Prevention. An approved means or method in accordance with Section 5704.2.9.7.6 shall be provided to prevent the overfill of all Class I, II, and IIIA liquid storage tanks. Storage tanks in refineries, bulk plants, or terminals regulated by Sections 5706.4 or 5706.7 shall have overfill protection in accordance with API 2350. An approved means or method in accordance with Section 5704.2.9.7.6 shall be provided to prevent the overfilling of Class IIIB liquid storage tanks connected to fuel burning equipment inside buildings. Section 5704.2.7.5.9 is added as follows: Automatic Filling of Tanks. Systems that automatically fill flammable or combustible liquid tanks shall be equipped with overfill protection, approved by the Fire Code Official, which sends an alarm signal to 115 a constantly attended location and immediately stops the filling of the tank. The alarm signal and automatic shutoff shall be tested on an annual basis and records of such testing shall be maintained on -site for a period of five (5) years. 16- 25.010 Adoption of California Plumbing Code. The 2013 California Plumbing Code, Title 24, Part 5, including Appendix Chapters A, B, C, D, H, and I only, hereinafter referred to as the "Plumbing Code," is referred to and such code is adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Plumbing Code of the City. However, in accordance with California Government Code Section 50222.4, no penalty clauses are adopted by reference. In accordance with California Government Code Section 50022.6, at least one true copy of the Plumbing Code has been on file with the City Clerk since fifteen days prior to enactment of the ordinance codified in this Article. While the ordinance codified in this Article is in force, a true copy of the Plumbing Code shall be kept for public inspection in the office of the Building Official. A reasonable supply of the Plumbing Code shall be available in the office of the City Clerk for public purchase. 16- 30.010 Adoption of California Mechanical Code. The 2013 California Mechanical Code, Title 24, Part 4, including all appendices, hereinafter referred to as the "Mechanical Code," is referred to and such code is adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Mechanical Code of the City. However, in accordance with California Government Code Section 50222.4, no penalty clauses are adopted by reference. In accordance with California Government Code Section 50022.6, at least one true copy of the Mechanical Code has been on file with the City Clerk since fifteen days prior to enactment of the ordinance codified in this Article. While the ordinance codified in this Article is in force, a true copy of the Mechanical Code shall be kept for public inspection in the office of the Building Official. A reasonable supply of the Mechanical Code shall be available in the office of the City Clerk for public purchase. 16- 35.010 Adoption of California Electrical Code. The 2013 California Electrical Code, Title 24, Part 3, hereinafter referred to as the "Electrical Code," is referred to and such code is adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Electrical Code of the City. However, in accordance with California Government Code Section 50222.4, no penalty clauses are adopted by reference. In accordance with California Government Code Section 50022.6, at least one true copy of the Electrical Code has been on file with the City Clerk since fifteen days prior to enactment of the ordinance codified in this Article. 116 While the ordinance codified in this Article is in force, a true copy of the Electrical Code shall be kept for public inspection in the office of the Building Official. A reasonable supply of the Electrical Code shall be available in the office of the City Clerk for public purchase. 16- 49.010 Adoption of California Green Building Standards Code. The 2013 California Green Building Standards Code , Title 24, Part 11, hereinafter referred to as the "Green Building Standards Code," is referred to and such code is adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Green Building Standards Code of the City. However, in accordance with California Government Code Section 50222.4, no penalty clauses are adopted by reference. In accordance with California Government Code Section 50022.6, at least one true copy of the Green Building Standards Code has been on file with the City Clerk since fifteen days prior to enactment of the ordinance codified in this Article. While the ordinance codified in this Article is in force, a true copy of the Green Building Standards Code shall be kept for public inspection in the office of the Building Official. A reasonable supply of the Green Building Standards Code shall be available in the office of the City Clerk for public purchase. Add Section: 16- 51.010 Adoption of California Energy Code. 546275.1 The 2013 California Energy Code ,Title 24, Part 6, hereinafter referred to as the Energy Code," is referred to and such code is adopted and made a part hereof, the same as if fully set forth in this Article, and shall be the Energy Code of the City. However, in accordance with California Government Code Section 50222.4, no penalty clauses are adopted by reference. In accordance with California Government Code Section 50022.6, at least one true copy of the Energy Code has been on file with the City Clerk since fifteen days prior to enactment of the ordinance codified in this Article. While the ordinance codified in this Article is in force, a true copy of the Energy Code shall be kept for public inspection in the office of the Building Official. A reasonable supply of the Energy Code shall be available in the office of the City Clerk for public purchase. 117 SARATOGA CITY COUNCIL MEETING DATE: November 20, 2012 AGENDA ITEM: DEPARTMENT: City Manager's Office PREPARED BY: Brian Babcock Administrative Analyst I CITY MANAGER: Dave Anderson DIRECTOR: Dave Anderson SUBJECT: Ordinance Amending Saratoga City Code to Regulate Banners in City Medians RECOMMENDED ACTION: Conduct a public hearing; introduce and waive the first reading of the attached ordinance modifying Sections 15- 30.050 and 15- 30.060 of Chapter 15 (Zoning) of the Saratoga City Code; and direct staff to place the ordinance on the consent calendar for adoption at the next regular City Council meeting. BACKGROUND: On September 18, the City Council approved a Median Banner Policy (Attachment Q. This policy regulates all event banners in City medians, identifies seven locations where individuals or groups can advertise their events, and establishes a new Median Banner application process. Council also directed staff to return with an ordinance amending City Code to prohibit banners and other signs in City medians, except in accordance with the Median Banner Policy. The preclusion of all private signs in City medians would allow for greater protection of the City's monument signs and the aesthetics of medians citywide. On October 23, the Planning Commission approved a resolution (Attachment B) recommending that the City Council adopt the draft ordinance (Attachment A) that modifies Sections 15- 30.050 and 15- 30.060 of Chapter 15 (Zoning) of the Saratoga City Code. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: Private signage in City medians would not be limited to those signs that comply with the Median Banner Policy adopted by the City Council. Page 1 of 2 118 ALTERNATIVE ACTION(S): The Council could decide to make additional changes to the draft ordinance language. FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. The public hearing for this item was duly noticed in the Saratoga News on November 5, 2013. ATTACHMENTS: Attachment A: Draft Ordinance Attachment B: Planning Commission Resolution Attachment C: Median Banner Policy Page 2 of 2 119 DRAFT 10/10/13 ORDINANCE AN ORDINANCE AMENDING SECTIONS 15- 30.050 AND .060 OF THE SARATOGA CITY CODE CONCERNING SIGNS IN CITY MEDIANS THE CITY COUNCIL OF THE CITY OF SARATOGA HEREBY ORDAINS AS FOLLOWS: Findings 1. The City of Saratoga hereby finds it essential to regulate the display of median banner signs within City limits. A. Medians consist of narrow, gravelly, and/or landscaped strips of land located in the middle of busy, multi -lane thoroughfares. These areas are not safe for general public use, as cars, trucks, and other motor vehicles pass on both sides of and in close proximity to them. Moreover, the City's medians do not provide adequate space to sit, stand comfortably, or otherwise spend time engaging in expressive activities. Thus, the City's medians are not conducive to discussion, discourse, or assembly, nor have they traditionally been used for these purposes. B. Under longstanding City policy, no signs or other structures have been allowed in City medians without an encroachment permit. For a short time, the City allowed signs in medians in connection with events that had been issued a Special Event Permit. City medians have never been places where the City has allowed unrestricted signage on all topics. The City now finds it important to adopt a streamlined and specific policy to regulate median banner displays in the City, restricting the former use of this forum for expression. C. This ordinance allows signs in medians that are erected by a public entity and allows non - governmental signs concerning events in Saratoga and otherwise makes no distinction among signs according to their content or the event they promote. Event organizers remain eligible to apply to display banners for events that are non- commercial, held in the City of Saratoga, and open to the public. This limited topic, announcing events in Saratoga, is appropriate for City medians because City residents frequently drive pass them and thus placing announcements at safe locations on medians is a convenient way to inform residents of upcoming events. D. During the limited time it was permitted the installation, display, and removal of median banners, presented potential safety risks. Motor vehicles drive at high speeds in both directions just adjacent to the narrow strips of land that comprise the City's medians. Each time a median banner was installed or removed under prior procedures, members of the public who sought to display the banners had to do so on narrow median strips. Improperly placed or installed median banners posed potential safety risks by obstructing drivers' sight lines and distracting drivers. This median banner amendment is necessary to address the safety risks associated with the prior policy. 1 120 DRAFT 10/10/13 E. Excessive signs can lead to visual clutter and a streetscape that is not aesthetically pleasing. On the other hand, median banners can unify and promote community identity by informing and involving all members of the community in civic and special events that are open to the public. The median banner policy serves the City's interests in promoting community identity and public information, and keeping the City's streets attractive and clutter -free. F. The City finds that these median banner restrictions best balance the City's interests and the public's right of expression, and channel expression into forums designated for that purpose. 2. This ordinance amends provisions of the City's zoning regulations in Chapter 15 of the Code. These amendments were considered by the Planning Commission of the City of Saratoga and following a duly noticed public hearing on October 23, 2013, the Planning Commission recommended adoption of the ordinance. 3. The City Council of the City of Saratoga held a duly noticed public hearing on November 20, 2013 and after considering all testimony and written materials provided in connection with that hearing, introduced this ordinance. Therefore, the City Council hereby ordains as follows: Section 1. Adoption. Sections 15- 30.050 and 15- 30.060 of the Saratoga City Code are amended as set forth below. Text to be added is indicated in bold double - underlined font (e.g., bold double - underlined) and text to be deleted is indicated in strikeout font (e.g., Wit). Text in standard font is not affected by this ordinance. 15- 30.050 Prohibited signs. The following signs are prohibited everywhere within the City: (a) Signs made of reflective material, and signs incorporating flashing or moving parts, except for traffic control signs or devices erected by a governmental entity. Televisions or monitors less than three square feet in area are excluded from this prohibition. (b) Mobile billboard advertising displays. (c) Advertising displays that are painted or attached to a vehicle parked on any property for more than forty -eight hours within a one -week period, if the sign is larger than twenty percent of the body panel (e.g. door, hood, roof) on which it is located. 2 121 DRAFT 10/10/13 (d) Streamers, balloons, flares, pennants, twirlers and similar attention - getting devices on or incorporated into any advertising display. (e) Posters, placards, announcements, and advertisements that are erected on any fence, pole, tree, pavement, wall, bus stop, bench, or any other object permanently affixed in or upon a public highway, public street or public right -of -way except as authorized by section 15- 30.060(k). (f) Obscene signs, which are defined as signs containing depictions or representations which: (1) Taken as a whole, the average person, applying contemporary community standards, would find appeals to the prurient interest; (2) Depict or describe, in a patently offensive way, sexual conduct specifically defined by California law; and (3) Taken as a whole, lack serious literary, artistic, political, or scientific value. (g) Signs that obstruct any door, window, fire escape or other egress path from any building. (h) Signs or sign structures that are in streets or travel lanes: conflict with traffic control signs or devices; interfere with, obstruct, or misdirect traffic; impede traffic or pedestrian movement; obstruct the clear view of vehicular or pedestrian traffic; are located in a median at a location other than one authorized by section 15- 30.060(kl: or otherwise create a pedestrian or vehicular safety hazard. (i) Any signs other than those allowed by this Article. 15- 30.060 Signs allowed in any zoning district without a sign permit. The following signs are allowed without a sign permit in any zoning district in the City: (a) Flags, provided that they display only noncommercial messages. The aggregate area of all flags displayed on any lot shall not exceed thirty square feet. No flagpole shall be higher than twenty -five feet. (b) Hand -held signs displaying noncommercial messages. (c) Window signs, provided that the signs do not comprise more than twenty -five percent of the area of any individual window. (d) Temporary special event signs as approved under a special event permit issued per City Code Article 10 -10 provided that: L1LNo individual sign shall exceed ten feet in height and sixty square feet in area; 2) The signs shall not be illuminated. 122 DRAFT 10/10/13 (3) No sign shall be thicker than one -half inch, except for support posts firmly planted in the ground. (4) A special event sign located on private property may incorporate balloons . ribbons, streamers, or other attention- getting devices, provided these devices are not displayed for more than twenty -four consecutive hours at a time, nor more than six twenty- four -hour periods in any one year. 5) No signs shall be located on private property without the permission of the property owner. (e) Temporary noncommercial signs (including, but not limited to, election signs), provided that: (1) No sign shall be displayed for more than seventy -five cumulative days within a one -year period. (2) No sign shall exceed four square feet in area and four feet in height. (3) The sign shall not be illuminated. (4) No sign shall be thicker than one -half inch, except for support posts firmly planted in the ground. (5) A temporary, noncommercial sign located on private property may incorporate balloons, ribbons, streamers, or other attention - getting devices, provided these devices are not displayed for more than twenty -four consecutive hours at a time, nor more than six twenty- four -hour periods in any one year. (6) No signs shall be located on private property without the permission of the property owner. (f) Temporary signs on lots with active construction. In addition to the temporary, noncommercial signs allowed pursuant to subsection 15- 30.060(e), up to two temporary, nonilluminated on -site or noncommercial signs on any active construction site, provided that: (1) The sign shall be located on the same lot as the construction project. (2) One sign may be freestanding, but in such case shall not exceed six feet in height. (3) One sign may be located on a construction fence. (4) No sign shall exceed fifteen square feet in area. (g) Banners on light poles erected or cosponsored by a governmental entity. 4 123 DRAFT 10/10/13 (h) Traffic control signs and devices erected by a government entity. Lots with a parking area exceeding ten spaces may have up to four signs for every ten parking spaces, where each sign shall not exceed two square feet in area and four feet in height. (i) Utility location signs, utility identification signs, and utility markers erected by a governmental entity. 0) City entrance signs. One permanent sign adjacent to an arterial street at each entrance to the City. The total sign area of each sign shall not exceed fifty square feet. k) City median signs. Temporary signs in medians erected by a government entity at locations and in such numbers and sizes approved by the City Manager. The City Manager shall determine safe locations, numbers, and sizes for City median signs, and shall make this information available to the public. Temporary signs displayed by others at these approved locations are permissible if: (1) No government entity is displaying its own sign(s) at the approved location(sl: 2) An application has been submitted to the City Manager to locate non - government signs at the approved locations and the City Manager has authorized the use. pursuant to procedures established by the City Council or City Manager: 3) Temporary signs are non - commercial and announce events that AIJ are non- commercial: (2) will be held in Saratoga: (3) are open to the general public and (41 are held by either (a) a non - profit organization :(b) an individual or group without charge: or (c) an individual or group with a charge for the purpose of cost - recovery or raising funds on behalf of a non - profit organization. (4) The temporary signs comply with such other requirements as may be adopted by the City Council or City Manager regarding the duration, size, installation and related matters other than the content of the sign. Section 2. Severance Clause. The City Council declares that each section, sub - section, paragraph, sub - paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub - section, paragraph, sub - paragraph, sentence, clause and phrase of this ordinance. If any section, sub - section, paragraph, sub - paragraph, sentence, clause or phrase of this ordinance is held invalid, the City Council declares that it would have adopted the remaining provisions of this ordinance regardless of the portion held invalid, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. Section 3. California Environmental Quality Act The proposed amendments to the City Code are Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline section 15061(b)(3). CEQA applies only to projects which have the potential of causing a significant effect on the environment. 5 124 DRAFT 10/10/13 Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, Staff is recommending amendments to the existing City Code and related sections and additions of provisions and reference appendices to the existing Code; the amendments and additions would have a de minimis impact on the environment. Section 4. Publication. This ordinance or a comprehensive summary thereof shall be published in a newspaper of general circulation of the City of Saratoga within fifteen days after its adoption. Following a duly notice public meeting the foregoing ordinance was introduced and read at the regular meeting of the City Council of the City of Saratoga held on the 20th of November 2013, and was adopted by the following vote following a second reading on the 4th day of December 2013. COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: Jill Hunter MAYOR OF THE CITY OF SARATOGA Saratoga, California APPROVED AS TO FORM: RICHARD TAYLOR, CITY ATTORNEY 514638.2 ATTEST: Crystal Bothelio CLERK OF THE CITY OF SARATOGA Saratoga, California 6 125 CITY OF SARATOGA PLANNING COMMISSION RESOLUTION NO: 13 -040 Application ZOA13 -0009 Amendments to Chaptez• 15 of the City Code The City of Saratoga Planning Commission finds and determines as follows with respect to the above - described application: WHEREAS, the City Council approved a Median Banner Policy on September 18. 2013. This policy regulates all event banners in City medians, identifies seven locations NN here individuals or groups can advertise their events, and establishes a new Median Banner application process. Modifications to the Sign Ordinance acknowledge the Median Banner Policy adopted by the City Council. The proposed amendments to Code Sections 15- 30.050 and 15- 30.060 are shown in Attachment 1. WHEREAS, on October 23, 2013 the Planning Commission held a duly noticed Public bearing on the legislation described above at which time all interested parties were given a full opportunity to be heard and to present evidence and argument. The Planning Commission considered the amendments, Staff Report, correspondence, presentations from the public, and all testimony and ether evidence presented at the Public Hearing. NOW THEREFORE, the Planning Commission of the City of Saratoga hereby finds, determines and resolves as follows: Section 1: The recitals set forth above are Irue and correct and incorporated herein by reference. Section 2: The legislation described in the recitals is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Sections 15061(b )(3). CEEQA applies only to projects that have the potential of causing a significant effect on the environment. 'Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the minor amendments are clarifying, only and would have a de minimis impact on the environment. Section 3: After careful consideration of the staff report and other materials, exhibits and evidence submitted to the City in connection with this matter, the Planning, Commission of the City of Saratoga does hereby recommend to the City Council to amend the City Code as shown in Attachment 1. 126 PASSED AND ADOPTED by the City of Saratoga Planning Commission on this 23rd day of October 2013 by the following vote: AYES: Aimalech, Bernald, Grover, Hlava, Srnullen, Walia & Zhao NOES: ABSENT: ABSTAIN: Joy' c. Hla Chair, Planning Commission Attachment: 1. Proposed Amendments to Sections 15- 30.050 and 15- 30.060 of the Zoning Code Application No. ZOA13 -0009 127 2 DRAFT 10/10/13 ORDINANCE AN ORDINANCE AMENDING SECTIONS 15- 30.050 AND .060 OF THE SARATOGA CITY CODE CONCERNING SIGNS IN CITY MEDIANS THE CITY COUNCIL OF THE CITY OF SARATOGA HEREBY ORDAINS AS FOLLOWS: Findings 1. The City of Saratoga hereby finds it essential to regulate the display of median banner signs within City limits. A. Medians consist of narrow, gravelly, and/or landscaped strips of land located in the middle of busy, multi -lane thoroughfares. These areas are not safe for general public use, as cars, trucks, and other motor vehicles pass on both sides of and in close proximity to them. Moreover, the City's medians do not provide adequate space to sit, stand comfortably, or otherwise spend time engaging in expressive activities. Thus, the City's medians are not conducive to discussion, discourse, or assembly, nor have they traditionally been used for these purposes. B. Under longstanding City policy, no signs or other structures have been allowed in City medians without an encroachment permit. For a short time, the City allowed signs in medians in connection with events that had been issued a Special Event Permit. City medians have never been places where the City has allowed unrestricted signage on all topics. The City now finds it important to adopt a streamlined and specific policy to regulate median banner displays in the City, restricting the former use of this forum for expression. C. This ordinance allows signs in medians that are erected by a public entity and allows non - governmental signs concerning events in Saratoga and otherwise makes no distinction among signs according to their content or the event they promote. Event organizers remain eligible to apply to display banners for events that are non- commercial, held in the City of Saratoga, and open to the public. This limited topic, announcing events in Saratoga, is appropriate for City medians because City residents frequently drive pass them and thus placing announcements at safe locations on medians is a convenient way to inform residents of upcoming events. D. During the limited time it was permitted the installation, display, and removal of median banners, presented potential safety risks. Motor vehicles drive at high speeds in both directions just adjacent to the narrow strips of land that comprise the City's medians. Each time a median banner was installed or removed under prior procedures, members of the public who sought to display the banners had to do so on narrow median strips. Improperly placed or installed median banners posed potential safety risks by obstructing drivers' sight lines and distracting drivers. This median banner amendment is necessary to address the safety risks associated with the prior policy. 128 DRAFT 10/10/13 E. Excessive signs can lead to visual clutter and a streetscape that is not aesthetically pleasing. On the other hand, median banners can unify and promote community identity by informing and involving all members of the community in civic and special events that are open to the public. The median banner policy serves the City's interests in promoting community identity and public information, and keeping the City's streets attractive and clutter -free. F. The City finds that these median banner restrictions best balance the City's interests and the public's right of expression, and channel expression into forums designated for that purpose. 2. This ordinance amends provisions of the City's zoning regulations in Chapter 15 of the Code. These amendments were considered by the Planning Commission of the City of Saratoga and following a duly noticed public hearing on October 23, 2013, the Planning Commission recommended adoption of the ordinance. 3. The City Council of the City of Saratoga held a duly noticed public hearing on November 20, 2013 and after considering all testimony and written materials provided in connection with that hearing, introduced this ordinance. Therefore, the City Council hereby ordains as follows: Section 1. Adoption. Sections 15- 30.050 and 15- 30.060 of the Saratoga City Code are amended as set forth below. Text to be added is indicated in bold double - underlined font (e.g., bold double - underlined) and text to be deleted is indicated in strikeout font (e.g., seetrt). Text in standard font is not affected by this ordinance. 15- 30.050 Prohibited signs. The following signs are prohibited everywhere within the City: (a) Signs made of reflective material, and signs incorporating flashing or moving parts, except for traffic control signs or devices erected by a governmental entity. Televisions or monitors less than three square feet in area are excluded from this prohibition. (b) Mobile billboard advertising displays. (c) Advertising displays that are painted or attached to a vehicle parked on any property for more than forty-eight hours within a one -week period, if the sign is larger than twenty percent of the body panel (e.g. door, hood, roof) on which it is located. 2 129 DRAFT 10/10/13 (d) Streamers, balloons, flares, pennants, twirlers and similar attention - getting devices on or incorporated into any advertising display. (e) Posters, placards, announcements, and advertisements that are erected on any fence, pole, tree, pavement, wall, bus stop, bench, or any other object permanently affixed in or upon a public highway, public street or public right -of -way authorized by section 15- 30.060fk1. (f) Obscene signs, which are defined as signs containing depictions or representations which: (1) Taken as a whole, the average person, applying contemporary community standards, would find appeals to the prurient interest; (2) Depict or describe, in a patently offensive way, sexual conduct specifically defined by California law; and (3) Taken as a whole, lack serious literary, artistic, political, or scientific value. (g) Signs that obstruct any door, window, fire escape or other egress path from any building. (h) Signs or sign structures that are in streets or travel lanes. conflict with traffic control signs or devices; interfere with, obstruct, or misdirect traffic; impede traffic or pedestrian movement; obstruct the clear view of vehicular or pedestrian traffic; are or otherwise create a pedestrian or vehicular safety hazard. (i) Any signs other than those allowed by this Article. 15- 30.060 Signs allowed in any zoning district without a sign permit. The following signs are allowed without a sign permit in any zoning district in the City: (a) Flags, provided that they display only noncommercial messages. The aggregate area of all flags displayed on any lot shall not exceed thirty square feet. No flagpole shall be higher than twenty -five feet. (b) Hand -held signs displaying noncommercial messages. (c) Window signs, provided that the signs do not comprise more than twenty -five percent of the area of any individual window. (d) Temporary special event signs as approved under a special event permit issued per City Code Article 10 -10 provided that: I1I—No individual sign shall exceed ten feet in height and sixty square feet in area; 2) The signs shall not be illuminated. 130 DRAFT 10/10/13 (3) No sign shall be thicker than one -half inch, except for support posts firmly planted in the ground (4) A special event sign located on private property may incorporate balloons. ribbons, streamers, or other attention - getting devices._ provided these devices are not displayed for more than twenty -four consecutive hours at a time, nor more than six twenty-four-hour periods in any one year. 5) No signs shall be located on private property without the permission of the property owner. (e) Temporary noncommercial signs (including, but not limited to, election signs), provided that: (1) No sign shall be displayed for more than seventy -five cumulative days within a one -year period. (2) No sign shall exceed four square feet in area and four feet in height. (3) The sign shall not be illuminated. (4) No sign shall be thicker than one -half inch, except for support posts firmly planted in the ground. (5) A temporary, noncommercial sign located on private property may incorporate balloons, ribbons, streamers, or other attention - getting devices, provided these devices are not displayed for more than twenty -four consecutive hours at a time, nor more than six twenty- four -hour periods in any one year. (6) No signs shall be located on private property without the permission of the property owner. (f) Temporary signs on lots with active construction. In addition to the temporary, noncommercial signs allowed pursuant to subsection 15- 30.060(e), up to two temporary, nonilluminated on -site or noncommercial signs on any active construction site, provided that: (1) The sign shall be located on the same lot as the construction project. (2) One sign may be freestanding, but in such case shall not exceed six feet in height. (3) One sign may be located on a construction fence. (4) No sign shall exceed fifteen square feet in area. (g) Banners on light poles erected or cosponsored by a governmental entity. 4 131 DRAFT 10/10/13 (h) Traffic control signs and devices erected by a government entity. Lots with a parking area exceeding ten spaces may have up to four signs for every ten parking spaces, where each sign shall not exceed two square feet in area and four feet in height. (i) Utility location signs, utility identification signs, and utility markers erected by a governmental entity. 0) City entrance signs. One permanent sign adjacent to an arterial street at each entrance to the City. The total sign area of each sign shall not exceed fifty square feet. k) City median signs. Temporary signs in medians erected by a government entity at locations and in such numbers and sizes approved by the City Manager. The ity Manager shall determine safe locations, numbers, and sizes for City median signs, and shall make this information available to the public. Temporary signs displayed by others at these approved locations are permissible if: (1) No government entity is displaying its own sign(s) at the approved location(sl: 2) An application has been submitted to the City Manager to locate non -government signs at the approved locations and the City Manager has authorized the use. pursuant to procedures established by the City Council or City Manager: 3) Temporary signs are non - commercial and announce events that (11 are non- commercial; (2) will be held in Saratoga: (3) are open to the general public and (41 are held by either (a) a non -profit organization ;(b) -an individual-or-group—without barge: or (c) an individual or group with a charge for the purpose of cost - recovery or raising funds on behalf of a non -profit organization. (4) The temporary signs comply with such other requirements as may be adopted by the City Council or City Manager regarding the duration, size, installation and related matters other than the content of the sign. Section 2. Severance Clause. The City Council declares that each section, sub - section, paragraph, sub - paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub - section, paragraph, sub - paragraph, sentence, clause and phrase of this ordinance. If any section, sub - section, paragraph, sub - paragraph, sentence, clause or phrase of this ordinance is held invalid, the City Council declares that it would have adopted the remaining provisions of this ordinance regardless of the portion held invalid, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. Section 3. California Environmental Quality Act The proposed amendments to the City Code are Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline section 15061(b)(3). CEQA applies only to projects which have the potential of causing a significant effect on the environment. 5 132 DRAFT 10/10/13 Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, Staff is recommending amendments to the existing City Code and related sections and additions of provisions and reference appendices to the existing Code; the amendments and additions would have a de minimis impact on the environment. Section 4. Publication. This ordinance or a comprehensive summary thereof shall be published in a newspaper of general circulation of the City of Saratoga within fifteen days after its adoption. Following a duly notice public meeting the foregoing ordinance was introduced and read at the regular meeting of the City Council of the City of Saratoga held on the 20th of November 2013, and was adopted by the following vote following a second reading on the 4th day of December 2013. COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: Jill Hunter MAYOR OF THE CITY OF SARATOGA Saratoga, California APPROVED AS TO FORM: RICHARD TAYLOR, CITY ATTORNEY 514638.2 ATTEST: Crystal Bothelio CLERK OF THE CITY OF SARATOGA Saratoga, California 6 133 RESOLUTION 13 -063 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ESTABLISHING A MEDIAN BANNER POLICY WHEREAS, the City wishes to provide individuals and groups the opportunity to announce non - commercial events to be field in the City of Saratoga that are open to the public with a streamlined process to make use of City medians while at the same time maintaining, protecting, and enhancing the aesthetics of key entrances to and exits from the City, and maintaining roadway safety; and WHEREAS, the Median Banner Policy furthers the goals of the City's sign regulations. City Code Article 15- 30.10, by assuring use of high - duality signs, preventing sign clutter, highlighting activities in Saratoga, protecting public safety by reducing traffic and safety hazards, and providing a reasonable system of sign control; and WHEREAS, the Median Banner Policy institutes guidelines for event banners that define: a review process for banners and offers areas in City medians to effectively announce Saratoga events; and WHEREAS, the Median Banner Policy establishes a new Median Banner application process, which sets a clear process for approval that is easy for event organizers to understand and follow; and NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Saratoga does hereby adopt the Median Banner Policy (Attachment A). The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga City Council held on the 18`x' day of September 2013 by the following vote: AYES: Council Member Manny Cappello, Howard Miller, Vice Mayor Emily Lo, Mayor .fill Hunter NOES: None ABSENT: Council Member Chuck Page ABSTAIN: None .fill Hunter, Mayor cw= gwli 0 DATE: Crys al Bothelio, City Clerk 134 Median Banner Policy The City of Saratoga owns and maintains medians in City streets and uses seven locations in these medians for banners to promote community identity and civic pride, beautify City streets, and inform the public of community events. The City does not post banners in these medians at all times. For median banner locations not being used for a City- sponsored banner, private banners are allowed in accordance with this policy. The following policy describes the City's procedures for banners in the seven identified City medians. No encroachment or other authorization for private use of City property shall be issued to allow banners or signs in any median except in accordance with this policy. This policy is administered by the City Manager's Office. All references to the City refer to the City Manager or a person designated by the City Manager in writing to administer this policy. The Median Banner Policy furthers the goals of the City's sign regulations found at City Code Article 15- 30.10. This section of City Code states that sign regulations are intended to assure use of high - quality signs, prevent sign clutter, highlight city activities, protect public safety by reducing traffic and safety hazards, and provide a reasonable system of sign control. Policy Goals • Help inform residents and others of events in Saratoga that are open to the public. • Offer event organizers an additional opportunity to promote their Saratoga events. • Preserve the City's aesthetic beauty by establishing guidelines for event banners and offering appropriate areas in City medians to inform the public of community events in Saratoga. • Maintain roadway safety by establishing a clear and concise policy for proper placement of private banners in City medians. 135 Policy Process and Requirements The following Median Banner Policy Matrix specifies the requirements event organizers need to meet in order to have their banners placed in City medians. Item Requirements Median Banner Locations 1) Intersection of Fruitvale Avenue and Allendale Avenue 2) Saratoga- Sunnyvale Road near Walnut Avenue 3) Saratoga - Sunnyvale Road near Prospect Road 4) Prospect Road and Highway 85 (near Plumas Drive) 5) Saratoga Avenue near Westview Drive 6) Saratoga Avenue near Highway 85 Intersection 7) Intersection of Saratoga Avenue and Fruitvale Avenue (Map of locations attached) Private banners may be placed in some or all of these locations when the location is not being used by the City. Permissible Banners Private banners placed in City medians must announce an event that (1) is non - commercial; (2) will be held in Saratoga; (3) is open to the general public; and (4) is held by either (a) a non - profit organization; (b) an individual or group without charge; or (c) an individual or group with a charge for the purpose of cost - recovery or raising funds on behalf of a non- profit organization. A non - commercial event is an event that does not promote a business or the sale of a good, service, or other commodity. Duration of Banner Posting Private median banners may be posted no earlier than 14 days before the date of the event. Banner Size and Other To ensure that banners are highly effective and Requirements meet City requirements: a) Banners must be between two - and -a -half (21/2) to three - and -a -half (31/2) feet in height and five (5) to six (6) feet in length. b Banners must be made from a heavy-duty 2 136 canvas or vinyl material. c) One -half (1/2) inch inside diameter metal grommets are to be placed at all four corners of the banner. d) Half moon cuts must be made in banners to allow for proper airflow to prevent ripping and /or tearing. e) Banners must be two -sided so as to be seen from both directions of traffic. f) Banners may not include reflective material, flashing or moving parts, streamers, balloons, flares, pennants, twirlers or similar attention- LiettinLi devices. Application Process I Applicants must: a) Submit an application for use of one or more of the median banner locations at least 10 City business days in advance of the proposed date for installation. The application shall be on the form developed by the City Manager for that purpose. b) Applications may be submitted no more than six (6) months in advance of the date that the banner is proposed for installation. Applications that do not conflict with dates and locations of City signs on the schedule approved by the City Manager at the time the application is received will be accepted on a first come -first served basis. If multiple applications for the same banner location for the same day received on the same day, the conflict shall be resolved by a random drawing. For the purpose of this policy, the day an application is received is the first City business day that City staff have an opportunity to review the application (for example, an e-mail sent on a Sunday and a letter delivered on a Friday when the City offices are closed would both be considered to be received on the first day that the City offices are open following the date on which the e -mail was sent or letter delivered). c) The application shall be accompanied by a fee of $30 per location. Payment must be received to reserve banner locations. The fee 3 137 138 shall be refunded if the application is not approved. d) The City Manager shall determine the days that each of the median banner locations will be used by the City and make the schedule available to interested members of the public. Banner Hanging and Removal a) Banners must be submitted to the City Manager's Office no later than three (3) City business days before they are to be installed. Banners that do not meet the requirements set forth in this policy will not be hung and will be returned to the applicant. b) Banners will be removed by City staff no more than two (2) City business days after the event date. c) The City will notify event organizers that their banners are ready to be claimed. Banners must be claimed within five (5) City business days once organizers have been notified. Banners not claimed within that time may be disposed of at the discretion of the City Manager's Office. Annual Exception During the 14 days prior to the first Sunday in May private event banners may be placed in City medians other than the locations described above as follows: a) The alternative locations have been designated by the City Manager as alternative sites that, for the limited duration of the posting, are consistent with the purposes of the City's sign ordinance. b) The banner size, structural design, and hanging and removal procedures meet criteria approved by the City Manager to assure that for the limited duration of the posting, the banners are consistent with the purposes of the City's sign ordinance. c) The City Manager shall specify the alternative locations and the size /structural /hanging and removal procedure requirements referenced above no later than November 15 of each year. d) Applicants must show proof of insurance that 138 504994.9 139 satisfies the City's standard insurance requirements. e) Applicants shall follow the application process described above except that if the applicant proposes to hang and remove the banners in the alternative locations no fee shall be required. Liability The City of Saratoga assumes no responsibility of the loss, theft, or damage to banners or loss, damage, or injury caused by the banners. 504994.9 139 I Median Banner Locationsh Le N N 1 Fruitvale Avenue and Allendale Avenue 2 Saratoga - Sunnyvale Road near Walnut Avenue 3 Saratoga - Sunnyvale Road near Prospect Road 4 Prospect Road and Highway 85 (near Plumas Drive) 5 Saratoga Avenue near Westview Drive 6 Saratoga Avenue near Highway 85 Intersection 7 Intersy��on of Saratoga Avenue and Fruitvale Avenue SARATOGA CITY COUNCIL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: Finance & Administrative Services CITY MANAGER: Dave Anderson PREPARED BY: Mary Furey DIRECTOR: Mary Furey SUBJECT: Annual Audit Reports RECOMMENDED ACTION: Review and accept the Fiscal Year 2012/13 Comprehensive Annual Financial Report (CAFR), the Fiscal Year 2012/13 Single Audit Report (Federal Grant Awards), the FY 2012/13 Transportation Development Act Report (MTC Grants), the FY 2013/14 Appropriation Limit Report, and the SAS 114 Report. BACKGROUND: Under a number of State and Federal laws, the City's financial statements are required to be audited annually by external auditors who are Certified Public Accountants (CPA) independent of City functions. The primary purpose of a financial audit is for an external financial expert to assess and subsequently render an opinion on whether the City's financial statement reports are presented fairly in conformity to applicable generally accepted accounting standards, and are free from material misstatement. The audits are performed in accordance with Government Auditing Standards, and include reports on internal control and compliance with laws and regulations. In compliance, the City contracts with a CPA firm licensed by the State of California to perform the various required financial audits: the Annual Financial Audit; a Single Audit on federal grant awards; a California Transportation Development Act (TDA) audit; and an Appropriations Limit Audit. In June of 1999 the Governmental Accounting Standards Board issued Statement 34 (commonly known as GASB 34), Basic Financial Statements —and Management's Discussion and Analysis for State and Local Governments, which greatly expanded and changed financial reporting requirements for state and local governments reporting in conformity with generally accepted accounting principles (GAAP). The City's primary financial statement report conforms to this new format known as a Comprehensive Annual Financial Report (CAFR). Subsequent GASB Statements are incorporated into the document if applicable. To ensure the report meets the standards for excellence requirements, the CAFR is then submitted to the Government Finance Officers Association (GFOA) financial reporting review program each year. Financial report information and presentation standards must be met to receive the award. REPORT SUMMARY: The City's has contracted with Chavan & Associates, LLP (C &A) to perform the City's annual audit, under a five year contract beginning FY 2012/13. The firm conducted the audit in accordance with generally accepted auditing standards. These standards require the auditors plan and perform audits to obtain reasonable assurance as to whether the financial statements are free of material misstatements. In conjunction with the audit, City staff compiles the financial data and schedules into a CAFR document to present the City of Saratoga's financial condition, results of operations, and economic condition for the fiscal year ended June 30, 2013. The CAFR document is included for your review as Attachment A. 141 The FY 2012/13 CAFR received an unqualified opinion from the City's auditors. An unqualified opinion indicates the financial data of the City is fairly presented according to general accounting principles. The Transportation Development Act Report also received an unqualified opinion. The Single Audit and Appropriation Limit Report audits only test for compliance, they do not issue an opinion for these reports. These three additional reports are included for you review as Attachments B, C, and D. To document and communicate audit process matters to Council, the auditors compile and submit a report of their audit responsibilities and various findings or issues they encountered during the audit, as directed by the Auditing Standards Board under Statement of Auditing Standards 114 (SAS 114). This report is included for your review as Attachment E. There were no negative findings or corrections; however the auditors have recommended the City make changes to grant management activities. The auditors suggest claims are prepared and submitted on a quarterly basis to ensure grant accounting activity is reviewed and reconciled promptly and to shorten the cash flow timeline. While there may be some exceptions, the auditors recommend this become a standard practice. In accordance with auditing regulations, auditors do not issue management letters on Internal Controls unless the City's internal control structure is found to have reportable material weaknesses. A material weakness is a significant deficiency which could lead to a material misstatement of the financial statements. Our auditors reviewed the City's internal controls, and found no reportable material weaknesses. The City will apply for the Government Finance Officers Association (GFOA), Certificate of Achievement for Excellence in Financial Reporting to ensure the City's financial reports once again meet high standards in governmental accounting and financial reporting. Saratoga received the GFOA award for last year's report for the nineteenth straight year. The award certificate is included in the CAFR report on page 7. Staff will inform Council of the award status for this year's report once notified. FISCAL IMPACTS: None CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: None FOLLOW UP ACTION: Notify Council of CAFR Award status. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and included in the packet made available on the City's website in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A — FY 2012/13 CAFR Document Attachment B — FY 2012/13 Single Audit Report Attachment C — FY 2012/13 Transportation Development Act Report Attachment D — FY 2013/14 Appropriation Limit Report Attachment E —SAS 114 Report 142 SA 06- I CITYOIFSARATOGA 1956 OFOV; c A L I F O R N I A F-A FISCAL YEAR 2012/13 143 CELEBRATING VILLA MONTALVO'S 10OT ANNIVERSARY COMPREHENSIVE ANNUAL FINANCIAL REPORT This page is intentionally blank. 144 -1 Qj 5AR'q'� Saratoga, California Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013 City Council JillHunter ..................................................................................... ............................... Mayor EmilyLo ............................................................................. ............................... Vice Mayor Howard Miller ............................................................. ............................... Council Member Chuck Page ................................................................. ............................... Council Member Manny Cappello .......................................................... ............................... Council Member Presented under the direction of.- Dave Anderson, City Manager Finance & Administrative Services Department This page is intentionally blank. CITY OF SARATOGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 309 2013 TABLE OF CONTENTS INTRODUCTORY SECTION Letterof Transmittal .......................................................................... ............................... l GFOA Certificate of Achievement for Excellence in Financial Reporting ...........................7 Principal Officers of the City ............................................................. ............................... 8 OrganizationChart ............................................................................. ..............................9 FINANCIAL SECTION Independent Auditors' Report ............................................................ ............................... 1 1 Management's Discussion and Analysis (Required Supplementary Information) ............. 13 Basic Financial Statements: Government -Wide Financial Statements Statement of Net Position ........................................................... ............................... 27 Statement of Activities and Changes in Net Position ................... ............................... 28 Fund Financial Statements Governmental Funds: BalanceSheet .............................................................................. .............................29 Reconciliation of the Government Funds Balance Sheet to the Government -Wide Financial Statement of Net Position ............................... 30 Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 31 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Position .............. ............................... 32 Proprietary Funds: Statement of Net Position ........................................................... ............................... 33 Statement of Revenues, Expenses, and Changes in Fund Net Position ......................... 34 Statement of Cash Flows ............................................................ ............................... 35 Basic Financial Statement Notes: Notes to the Basic Financial Statements ........................................ .............................36 Required Supplementary Information Budgetary Information ............................................................... ............................... 59 Modified Approach for City Streets Infrastructure Capital Assets ............................... 61 CITY OF SARATOGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 309 2013 TABLE OF CONTENTS CONTINUED SUPPLEMENTARY INFORMATION: Non -Major Governmental Funds Combining Balance Sheets ........................................................ ............................... 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances........ 67 Schedule of Revenues, Exp and Changes in Fund Balances — Budget and Actual: CapitalImprovements ........................................................... ............................... 68 Lighting & Landscape Assessment Districts Special Revenue Funds ..................... 69 Library Bond Debt Service Fund ........................................... ............................... 70 Internal Service Funds Combining Statement of Net Position ......................................... ............................... 72 Combining Statement of Revenues, Expenses, and Change in Fund Balance ............... 74 Combining Statement of Cash Flows .......................................... ............................... 76 Capital Assets Used in the Operation of Governmental Funds Comparative Schedule by Source ................................................ ............................... 81 Schedule by Function and Activity ............................................. ............................... 82 Schedule of Changes by Function and Activity ........................... ............................... 84 Statistical Section (Unaudited) Net Position by Component ........................................................ ............................... 86 Changesin Net Position ............................................................. ............................... 88 Fund Balance of Governmental Funds ........................................... .............................90 Governmental Activities Tax Revenues by Source ...................... ............................... 92 Changes in Fund Balances of Governmental Funds ..................... ............................... 94 Direct and Overlapping Governments ......................................... ............................... 96 Assessed Value of Taxable Property ........................................... ............................... 98 Principal Property Taxpayers .................................................... ............................... 100 Property Tax Levies and Collections ......................................... ............................... 101 Ratios of Outstanding Debt by Type ......................................... ............................... 102 Ratios of General Bonded Debt Outstanding ............................. ............................... 104 Legal Debt Margin Information ................................................ ............................... 106 Direct and Overlapping Governmental Activities Debt .............. ............................... 108 Demographic and Economic Statistics ...................................... ............................... 109 PrincipalEmployers ................................................................ ............................... 110 Full -Time Equivalent City Government Employees by Function ............................... 112 Operating Indicators by Function .............................................. ............................... 114 Capital Asset Statistics by Function .......................................... ............................... 116 11 J SARq q ]9s6 N P �IF0 INTRODUCTORY SECTION This page is intentionally blank. November 12, 2013 CITY OF SARATOGA Honorable Mayor, City Council, and Citizens of the City of Saratoga, California CITY HALL 13777 FRUITVALE AVENUE SARATOGA, CALIFORNIA 95070 (40 8) 868 -1200 The Comprehensive Annual Financial Report (CAFR) of the City of Saratoga for the year ended June 30, 2013 is hereby submitted in accordance with mandated statutes. These statutes require the City of Saratoga to annually issue a report on its financial position and activity, and that an independent firm of certified public accountants audits this report. This annual report was prepared in accordance with accounting principles generally accepted in the United States of America. City Management is responsible for both the accuracy of the data and the completeness and fairness of the presentation, including all disclosures. To provide a reasonable basis for making these representations, the City has established internal controls to provide reasonable rather than absolute assurance that the financial statements will be free of material misstatement. To the best of our knowledge and belief, the enclosed data is accurate in all material respects and is reported in a manner designed to present fairly the financial position and results of operations of the various funds of the City. Information contained in this report is intended to present the reader with a comprehensive view of the City's financial position and the results of its operations for the fiscal year ending June 30, 2013, along with additional disclosures and financial information designed to enable the reader to gain an understanding of the City's financial activities. The report was prepared as prescribed in Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements and Management's Discussions and Analysis for State and Local Governments. To facilitate the general public's understanding and usefulness of the City of Saratoga's financial statements, GASB Statement 34 requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD &A). This formal letter of transmittal is designed to complement the MD &A and should be read in conjunction with it. The CAFR is presented in the following three sections: 1. Introductory Section — The Introductory Section, which is unaudited, includes this letter of transmittal, the Government Finance Officers Association's (GFOA's) Certificate of Achievement for Excellence in Financial Reporting to the City, a list of the City of Saratoga's elected officials and administrative personnel, and an organization chart. 2. Financial Section — This section includes the Independent Auditor's Report on the financial statements and schedules, Management's Discussion and Analysis on fiscal operations, and the Basic Financial Statements which include Government -Wide and Fund Financial statements, the Basic Financial Statement Notes, and Required Supplementary Information. 3. Supplementary Information Section — The Supplementary Information section includes Non -Major Governmental Fund statements, Internal Service Fund Statements, and Capital Asset Statements, and the Statistical Section with selected financial and demographic information generally presented on a multi-year basis, is unaudited. Unaudited sections of this document are presented to supplement the basic financial statements. While not audited, the supplemental information is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for operational, economic and historical context. THE REPORTING ENTITY AND ITS SERVICES The City of Saratoga (City), incorporated in 1956, is located 40 miles south of San Francisco in the Santa Clara Valley. The City currently covers a land area of approximately 12 square miles and contained a population of 30,706 at January 1, 2013, as reported by the Department of Finance. The City is a general law city of the State of California and operates under a council- manager form of government. Policymaking and legislative authority are vested in the City Council, which consists of a Mayor, Vice Mayor and three additional council members. City Council members are elected at -large for staggered four -year terms. The Mayor is selected annually by the City Council. The City Council is responsible for, among other things, passing ordinances, adopting the budget, appointing members to the City's seven advisory commissions and hiring the City Manager and City Attorney. The City Manager is responsible for implementing the policies and ordinances of the City Council, overseeing the daily operations of the City, and recommending appointments of the City's department directors to the City Council. The City provides a limited range of services including public safety, development regulation, public works, community and recreation activities and events, and general administrative functions. As a minimal service city, activities are supplemented through numerous contracts with others. Contracted services include, but are not limited to, public safety, infrastructure maintenance, engineering services, legal services and recreation activities. The City is also committed to citizen participation in the evaluation, expansion and enhancement of services. Saratoga residents who wish to assist the City Council in forming government policy may do so by serving on an advisory commission. The commissions act in an advisory capacity to the City Council, and are comprised of the Heritage Preservation Commission, Library Commission, Parks and Recreation Commission, Planning Commission, Public Safety Commission, and Youth Commission. The financial reporting entity (the City) includes all the fund activity of the primary government, as well as all of its component units. Component units are legally separated entities for which the City is fully accountable. The City's Saratoga Public Financing Authority (PFA) component unit which provided financial oversight of local bond obligations was finalized in fiscal year 2005/06. The Authority's final financial report was issued for fiscal year 2006/07. Blended component units, although legally separate entities, are in substance, part of the City's operations and data from these units are combined with data of the City. Accordingly, the operations of the Landscaping and Lighting Assessment Districts are reported in the City's financial statements. ECONOMIC CONDITIONS AND OUTLOOK Within close proximity to many businesses associated with the high technology industry, Saratoga is viewed as a desirable place to live and serves primarily as a residential community to the Silicon Valley. There is limited commercial or industrial activity within city boundaries. Due to its highly rated schools and beautiful neighborhoods nestled within the foothills at the edge of the valley, Saratoga has grown into an affluent residential city and in general is fiscally protected by the stability of its' tax and development fee revenues. As is typical for California cities, the City of Saratoga's largest funding sources are property tax, franchise fees, sales tax, and development fees and permits. It should be noted however, that while development fees are a significant funding source; expenses related to the intake of this fee -based revenue more than offsets the revenue received. Property Tax Effective with the 2006/07 fiscal year, the City began receiving a significant increase in property tax revenues due to the passage of Assembly Bill 117. This legislation increased the property tax percentage allocated to the City under the Tax Equity Allocation (TEA) formula. Allocation inequality originally arose from the passage of Proposition 13 in 1978, which froze property taxes at their current level for all cities across the State. This action created significant problems for cities with low property tax rates. Subsequently, Section 98 of the California Revenue and Taxation Code was passed establishing a minimum tax equity allocation of 7% of the 1.0% ad valorem tax to those cities below the average rate as a condition for Counties to receive trial court funding. Impacts to ERAF created by the shift were backfilled by the State. Because Santa Clara County determined it would receive less from trial court funding than from the additional tax moneys flowing to the four low tax cities (Saratoga, Cupertino, Los Altos Hills, and Monte Sereno), additional legislation was enacted which limited the four low property tax cities in Santa Clara County to just 55% of the 7% minimum allocation. In 2006, Assembly Bill 117 repealed the 55% limit, however the four cities were required to continue to remit the County's ERAF rate on these funds so that the bill would have no effect on the State Budget, and therefore avoid the Appropriations Committee. Unfortunately, the ERAF rate the County remits to the State is much higher at 47.7% than the four city's ERAF rates ranging from 7.53% to 17.37 %.) Although made partially whole, these four cities continue to be treated differently than the State's other TEA cities. For Saratoga, the 2006 legislative adjustments increased revenues from 3.85% to 5.46% of the 1.0% property tax paid by residents; however it remains below the minimum 7.0 %. Due to this difference in treatment, efforts to bring the four cities up to the full tax rate continue. Franchise Fees Franchise Fees are assessments on a number of homeowner based utility services, including gas, electricity, water, cable, and solid waste. These assessments are integrated into the utility agreements, to be collected and remitted by the service companies. The assessments are determined by easement formulas or a percentage of service costs and are a pass - through fee on their billings. With most of these services considered necessities in an urban setting, there is little fluctuation in most of the revenues stream. Cable revenue has increased due to growth in the use of enhanced cable services. And, over the last several years, solid waste franchise fee revenue has increased with the rise in service charges. Both of these fees are expected to remain fairly flat in the future. Sales Tax With Saratoga primarily a residential community with limited retail sources, Sales Tax is small in comparison to other cities of similar size. In an average year, the City receives approximately $1 million in Sales Tax, which is derived primarily from restaurants, grocery and drug stores, and gas stations. These revenue categories have remained fairly consistent over time as they provide a good balance to meet local needs. Revenue is not expected to grow significantly in the future as spending habits are migrating to online purchases, nor is it expected to decrease significantly as the Sales Tax comes from basic services and goods the community requires. Development Fees Development Fees revenue is derived from services related to planning reviews, planning applications, building plan reviews, engineering reviews, building inspections, and all permits, fees and costs associated with performing these activities. These services are regulatory to ensure compliance with all applicable laws, and to ensure health and safety of the community. Although the entire community benefits from an enforced regulatory program, the service requestor initiates the development change and benefits the most from it, and therefore should pay most if not all of the costs. While in the past, the financial strength of the Saratoga community has insulated this revenue source from minor economic fluctuations, the last few years have proven that development activity does correlate with the stronger economic highs and lows. Fiscal Outlook For Saratoga, these main funding sources are considered to be stable and reliable most of the time. In comparison to other cities, Saratoga suffered only a minor decline in property tax and sales tax revenues with the economic downturn of 2008. However, the backlash impact on planning fees, building permits and interest revenues combined with this downturn created a substantial revenue reduction overall, prompting the City's response for reductions in staffing and operations. This economic low, known as the `Great Recession', was much more severe than normal and the impacts were considered unusual. In the spring of 2012, signs of recovery began to emerge. Property Tax revenues began to pick up, with total General Fund Property Tax revenues increasing by more than 8% in FY 2012/13. A trend in Transfer Tax fee increases showcased this upturn in the housing market. While Property Tax revenues continue to grow, there are signs that the housing market has tempered its pace, prompting conservative Property Tax revenue projections of 3% for the following budget year and into the near future. Franchise Fee revenue remained stable throughout the recession due to the nature of the revenue. With no expectation for growth, minimal revenue increases are projected each year, in line with service fee increases. FY 2012/13 Sales Tax revenue fell slightly from the prior year, but as the decrease was due to corrections in the State's payment estimates and allocations, it was clear the overall strength of the economy remained strong. While encouraging, minimal actual growth is expected in future years as the City's land use structure consists primarily of built -out residential neighborhoods and a small number of commercial developments, thereby limiting large Sales Tax revenue generating sources. During the downturn, annual Development Fees dropped by more than $700,000 in two years' time as a result of the decreasing housing prices and credit tightening. While revenues are not yet back up to pre - recession levels, FY 2012/13 revenues demonstrated a healthy resurgence in construction activity in alignment with other strengthening revenues. California's overall economy is slowly improving, with Saratoga and the rest of the San Francisco Bay Area cities at the forefront of this swell. Even the State's finances appear to have stabilized. However, ongoing reduced funding levels continue to have cities concerned that any unprotected State or County -based funding is still at risk, even with Proposition IA protecting cities from unrestrained State takeaways. With this continuing fiscal uncertainty and with the anticipation of ever - increasing operating and pension costs, Saratoga plans to continue operations at basic service levels in preparation for funding impacts as the new normal of government emerges. The Capital Improvement Program continues to be funded through dedicated funding sources, grant money, and residual funding from prior year operations. FINANCIAL INFORMATION AND MAJOR INITIATIVES Financial Controls Management of the City is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse, and to ensure that adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that: (1) 4 the cost of a control should not exceed benefits likely to be derived, and (2) the valuation of costs and benefits requires estimates and judgments by management. As a recipient of federal, state and local financial assistance, the City is also responsible for guaranteeing that an adequate internal control structure is in place to ensure and document compliance with applicable laws and regulations related to these programs. This internal control structure is subject to periodic evaluation by the City's management. For Cash Management, the City practices a passive approach to investments and maintains flexibility by managing a pooled cash system. Under the pooled cash concept, the City invests the cash of all funds with maturities planned to coincide with cash needs. Idle cash is invested in certain eligible securities as constrained by law and further limited by the City's investment policy. The goals of the City's investment policy are safety, liquidity and yield. Cash management is tracked by fund and reconciled monthly. In addition, the City maintains extensive budgetary controls. The objective of these controls is to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the general fund, special revenue funds, capital projects funds and debt service funds are included in the annual appropriation. The level of budgetary control (i.e., the level at which expenditures cannot exceed the appropriated amount) is at the fund level. The City also maintains an encumbrance accounting system as another method of maintaining budgetary control. Encumbered amounts lapse at year -end with the exception of the Capital Improvements Projects, which are multiple -year projects. On occasion, outstanding encumbrances of a material nature are reviewed by the responsible department at year end, and if deemed critical, a recommendation is made to the City Council to take action by Resolution to re- appropriate these funds into the following year's budget. Major Initiatives The fiscal year 2012/13 Budget was developed with a focus on attaining a sustainable operating structure which maintained service levels under expectations of continued revenue reductions. With the ongoing potential for takeaways due to the State's fiscal struggles, departmental budgets were held to basic service levels and staffmg costs were lowered through salary and benefit reductions attained during the prior year's labor negotiations. The Operating Budget focused on maintaining core services. A small amount of funding was provided to encourage business development through a Chamber of Commerce subgroup which focused on promoting the Village as a destination to increase business activity. The City also sought to improve communications and involve citizens in City activities through enhancements to the City's radio station control system, improvements in the Community Events process, and Social Media Outreach tools. With limited funding available for new Capital Projects in FY 2012/13, staff concentrated on completing existing projects already budgeted and standard ongoing maintenance projects for storm drain and sidewalk repairs, and traffic safety. Available City funding was used primarily to leverage grant funding for Street projects and for two safety projects. In conjunction with promoting Saratoga businesses, funding was also allocated for a new Business Development project to promote City businesses. INDEPENDENT AUDIT The City engaged Chavan & Associates, LLP to express an opinion on the financial statements based on their audit. The audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Generally accepted auditing standards set forth in the General Accounting Office's Government Auditing Standards were used by the auditors in conducting the engagement. The City's Annual Financial Report received an unqualified (clean) opinion from the auditors. The independent auditors' report is presented as the first component of the financial section of this report. hi addition to meeting the requirements set forth in statutes, the audit was also designed to meet the requirements of the federal Single Audit Act of 1984, as amended, and the related U.S. Office of Management and Budget's Circular A -133, Audits of States, Local Governments, and Non -Profit Organizations. The City's federal financial assistance program also received an unqualified (clean) opinion from the auditors. Awards The Government Finance Officers Association (GFOA) of the United States and Canada awarded a Certificate of Achievement to the City for its Excellence in Financial Reporting on the CAFR for the fiscal year ended June 30, 2012. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized financial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. The Certificate of Achievement is valid for a period of one year. We believe our current CAFR continues to meet the Certificate of Achievement program's requirements, and plan on submitting it to the GFOA to determine its eligibility for another certificate. ACKNOWLEDGEMENTS This CAFR represents the culmination of numerous hours of hard work expended by many individuals in the Finance & Administrative Services Department. In particular, we would like to express our appreciation to Robert Edris, Sr. Accountant for his preparation of this annual financial report, and to our supporting staff members: Glenda Cracknell, Sr. Accountant; Ann Xu, Accountant; Julie Ingraham, Karen Caselli, and Gina Fitch, Accounting Technicians for their assistance with the audit and exemplary services throughout the year. Furthermore, we would like to thank Chavan & Associates, LLP Certified Public Accountants for their helpful assistance in the preparation of this report. Finally, we would like to give credit to the City Council for their ongoing interest and support in planning, conducting and advising on the operations of the City in a responsible and representative manner. Respectfully submitted, 6 Dave Anderson Mary Furey City Manager Finance and Administrative Services Director 6 Government Finance Officers Association Certificate of Achievement for Excellence 4 in Financial Reporting Pre.sen-wd, to City of Saratoga California For its Comprehensive Annual Finamial Report for thy; Fiscal, Year Ended ,inns 30, 2012 Executive Directar/CEO CITY OF SARATOGA ELECTED OFFICIALS AND ADMINISTRATIVE PERSONNEL As of June 30, 2013 Ciffi*110001111 Jill Hunter - Mayor Emily Lo — Vice Mayor Howard Miller Chuck Page Manny Cappello CITY STAFF Dave Anderson — City Manager Crystal Morrow — City Clerk Mary Furey — Finance & Administrative Services Director James Lindsay — Community Development Director John Cherbone — Public Works Director Michael Taylor — Recreation & Facilities Director CITY ATTORNEY Richard S. Taylor — Shute, Mihaly & Weinberger INDEPENDENT AUDITORS Chavan & Associates, LLP Certified Public Accountants Recreation & Facilities Department Recreation & Facilities Director City of Saratoga - Organization Chart Citizens of Saratoga 1 Elected City Council Citizen Advisory Commissions & City Manager City Attorney Committees I F City Manager's Office I Administrative Analyst Olficeof the City Clerk 50 Executive Assistant 1 City Clerk 50 Deputy City Clerk Recreation Services Division 1 Senior Recreation Supervisor 1 Recreation Supervisor 75 Office Specialist II 1 Office Specialist III Facilities Division 1 FacilityMaint. Supervisor 1 FacilityMaint. Leadworker 2 FacilityMaint. Workers .60 Facility Coordinator Community Development Department Community Development Director Planning Division 1 Senior Planner 2 Assistant Planners 1 Arborist 1 Office Specialist Building Division 1 Building Official 2 Building Inspectors 1 Plan Check Engineer 1 Office Specialist 9 Public Works Department Public Works Director Engineering Division 1 Sr. Civil Engineer 1 Associate Engineer .90 Administrative Analyst .75 Office Specialist Finance & Administrative Services Department Finance & Administrative Services Director Streets and Fleet Division 1 Manager- Streets and Fleet 1 Street Maint. Leadworker 1 Street Maint. Specialist 4 Street Maint. Workers .50 Office Specialist Parks Division 1 Manager - Parks 1 Park Maint. Leadworker 1 Park Maint. Specialist 5 Park Maint. Workers .50 Office Specialist Finance Division .90 Accountant 3 Accounting Technicians Information Technology Division 1 IT Analyst Human Resources Division 1 HR Manager This page is intentionally blank 10 FINANCIAL SECTION 161 This page is intentionally blank Chavan & associates, LLP Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of the City of Saratoga Saratoga, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Saratoga (the "City "), as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements The City's management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Saratoga, as of June 30, 2013, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Page 111 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 163 info @cnallp.com • www.cnallp.com Chauan & Associates, LLP Certified Public Accountants Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's financial statements as a whole. The introductory section, combining individual non -major fund statements and schedules, and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining individual non -major fund statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Information As discussed in Note 1 to the financial statements, the City adopted the provisions of GASB Statement No. 63, Financial Reporting of Deferred Ou�flows of Resources, Deferred Inflows of Resources, and Net Position, and GASB Statement No. 65, Items Previously Reported as Assets and Liabilities, effective July 1, 2012. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 18, 2013 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. C All, 4 UF October 18, 2013 San Jose, California Page 112 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 -872 -4159 164 info @cnallp.com • www.cnaUp.com CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 INTRODUCTION The Management's Discussion and Analysis (MD &A) is a required section of the City's Comprehensive Annual Financial Report (CAFR), as shown in the overview below. The purpose of the MD &A is to presents discussion and analysis of the City's financial performance during the fiscal year that ended on June 30, 2013. This report will (1) focus on significant financial issues, (2) provide an overview of the City's financial activity, (3) identify changes in the City's financial position, (4) identify any individual fund issues or concerns, and (5) provide descriptions of significant asset and debt activity. This information, presented in conjunction with the annual Transmittal Letter and Basic Financial Statements is intended to provide a comprehensive understanding of the City's operations and financial standing. Required Components of the Annual Financial Report Management's Basic Discussion & Analysis Financial Statements Govemment -Wide Fund Notes to the Financial Statements F Financial Statements Financial Statements FISCAL YEAR 2012/13 FINANCIAL HIGHLIGHTS • Total net position increased by $2.3 million last fiscal year. • The City's assets exceeded its liabilities by $ 127.7 million; assets totaled $142.5 million and liabilities were $ 14.8 million. • Net position is comprised of $112.4 million for investment in capital assets, net of depreciation and related debt; $2.0 million restricted for specific purposes; and $13.4 million in unrestricted Net position (reference pg #27). • Total City -wide revenues were $21.7 million which consists of program revenue of $7.8 million and general revenues of $13.8 million (reference pg #28). • Total City expenses were $19.4 million (reference pg #28). • Total Governmental Fund's fund balances were $14.8 million, consisting of $9.9 million in the General Fund, $3.4 million in the Capital Improvement Funds, and $1.5 million in the Other Governmental Funds (reference pg #29). This represents an increase of $948 thousand from last year. • General Fund revenues were $17.6 million, while General Fund expenditures were $15.6 million (reference pg #31). CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 THE BASIC FINANCIAL STATEMENTS The Basic Financial Statements are comprised of 1) Government -wide (City -wide) Financial Statements, and; 2) Fund Financial Statements. These two sets of financial statements provide the reader two different perspectives of the City's financial activities and financial position. Government -Wide Financial Statements provide a longer -term view of the City's activities as a whole, and comprise the Statement of Net Position and the Statement of Activities. The Statement of Net Position provides information about the financial position of the City as a whole, including all its capital assets and long -term liabilities on a full accrual basis, similar to that used by corporations. The Statement of Activities provides information about all the City's revenues and all its expenses, also on a full accrual basis, with the emphasis on measuring net revenues and/or expenses for each of the City's programs. The Statement of Activities explains in detail the change in Net Position for the fiscal year. All of the City's activities are required to be grouped into government activities and business -type activities. The entire amount in the Statement of Net Position and the Statement of Activities are also required to be separated into governmental activities or business -type activities in order to distinguish between these two types of activities of the City. In the case of the City of Saratoga, there are no business -type activities as of June 30, 2013. Fund Financial Statements report the City's operations in more detail than the government -wide statements and focus primarily on the short-term activities of the City's general fund and other major funds. The Fund Financial Statements measure only current revenues and expenditures and fund balances; they exclude capital assets, long -term debt, and other long -term amounts. Major funds account for the major financial activities of the City and are presented individually, while the activities of non -major funds are presented in summary, with subordinate schedules presenting the detail for each of these other funds. Major funds are explained below. The Government -Wide Financial Statements Government -wide financial statements are prepared on the accrual basis, which means they measure the flow of all economic resources of the City as a whole. The Statement of Net Position and the Statement of Activities present information about the following: Governmental Activities - All of the City's basic services are considered to be governmental activities, including general government, community development, public safety, transportation, and, culture and leisure. These services are supported by general City revenues such as taxes, and by specific program revenues such as development and recreation program fees. Business -Type Activities - This category includes enterprise activities such as water, sewer, and utilities. Unlike governmental services, these services are fully supported by charges paid by users based on the amount of services they use. The City of Saratoga does not have any business -type activities at this time. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other local governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 Fund financial statements provide detailed information about each of the City's most significant funds, called major funds. The concept of major funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each major fund is presented individually, with all non -major funds summarized and presented only in a single column. Subordinate schedules present the detail of these non -major funds. Major funds present the major activities of the City for the fiscal year, and may change from year to year as a result of changes in the pattern of the City's activities. The City's funds are segregated into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds - The City's basic services are reported in governmental funds, which focus on how money flows into and out of those funds and the balances available at year -end. Financial statements are prepared on the modified accrual basis, which means they measure only current financial resources and uses. Carrying amounts for capital assets and other long -lived assets, along with long -term liabilities are not presented on the balance sheet in the governmental fund financial statements. Unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City's near -term financing requirements. Proprietary Funds — Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for liability and risk management, workers compensation, office equipment support services, information technology services, vehicle and building maintenance, and vehicle and information technology equipment replacement. Because the internal service funds benefit the governmental functions, they have been included with the governmental activities in the government -wide financial statements. Fiduciary Funds — These funds account for assets held by the City in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. Fiduciary funds are not reflected in the government -wide financial statements because these resources are not available to support the City's programs. Currently the City does not have any fiduciary funds. NOTES TO THE FINANCIAL STATEMENTS Notes to the Financial Statements provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes can be found immediately following the fund financial statements. REQUIRED SUPPLEMENTARY INFORMATION Required supplementary information other than through the MD &A follows the Notes and includes a budgetary comparison for the General Fund as presented in the governmental fund financial statements, and information on the modified approach for city streets and infrastructure. SUPPLEMENTARY INFORMATION Combining and individual fund statements and schedules are included to provide additional information on non -major governmental funds including special revenue, debt service, and capital project funds, as well as proprietary internal service fund information and uses of capital assets. An un- audited statistical section provides historical and current data on financial trends, revenue and debt capacity, demographic and economic information, and operating information. CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 GOVERNMENT -WIDE FINANCIAL ANALYSIS Net position may serve over time as an indicator of the City's financial position. The City's Total Net Position increased $2,293,952, from $125,387,400 in fiscal year 2011/12 to $127,681,352 in fiscal year 2012/13. The most significant portion of the City's net position ($112,353,273 or 88.0 %) accounts for its investment in capital assets, (e.g., land, buildings, general government infrastructure, equipment, etc.) less any related debt used to acquire those assets that are still outstanding. These capital assets represent infrastructure which provides services to the citizens, consequently, these assets are not available for future spending. $1,970,887 or 1.5% of the City's net position is subject to external restrictions on how they may be used. Of these restricted net position, $621,948 is restricted for lighting and landscaping assessment districts, $463,182 is restricted to environmental programs, and $885,757 is for repayment of long -term debt. The remaining $13,357,192 or 10.5% of the City's net position are unrestricted and may be used to meet the City's ongoing obligations to citizens and creditors. As s ets Current assets Capital assets Liabilities Current liabilities Long -term debt Net Position Total Assets Total Liabilities Net Position Net investment in capital assets Restricted for environmental services Restricted for special assessment funds Restricted for debt service Unrestricted Total Net Position Governmental Activities 2013 2012 $ 18,646,780 123,893,273 142,540,053 3,228,709 11,629,992 14,858,701 112,353,273 463,182 621,948 885,757 13,357,192 $ 127,681,352 $ 18,023,582 123,196,676 141,220,258 4,051,633 11,781,225 15,832,858 111,201,676 562,504 513,182 862,415 12,247,623 $ 125,387,400 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 Functions /Programs Program Revenues Charges for services Operating grants and contributions Capital grants and contributions Total Program Revenues General Revenues Property taxes Sales taxes Local taxes Franchise taxes Motor vehicle in -lieu Intergovernmental revenues Investment earnings Other revenues Total General Revenues Expenses General and intergovernmental services Public safety Public works Community services Community development services Interest on long -term debt (unallocated) Total Expenses Increase / (Decrease) in Net Position Net Position, Beginning of Year Net Position, End of Year Statement of Changes in Net Position Governmental Activities 2013 2012 $ 7,154,600 75,000 599,067 7,828,667 9,152,499 1,051,121 769,357 1,919,750 16,402 766,090 50,562 112,906 13,838,687 4,143,254 4,381,644 6,921,349 1,804,331 1,712,706 410,118 19,373,402 2,293,952 125,387,400 $ 127,681,352 $ 5,625,974 1,319,318 2,337,120 9,282,412 8,456,687 1,100,489 683,383 1,852,390 15,830 910,331 66,623 118,181 13,203,914 3,486,353 4,299,853 9,121,435 1,995,948 1,553,119 452,645 20,909,353 1,576,973 123,810,427 $ 125,387,400 Increase (Decrease) $ 1,528,626 (1,244,318) (1,738,053) (1,453,745) 695,812 (49,368) 85,974 67,360 572 (144,241) (16,061) (5,275) 634,773 656,901 81,791 (2,200,086) (191,617) 159,587 (42,527) (1,535,951) 716,979 1,576,973 $ 2,293,952 As shown in the above Statement of Changes in Net Position schedule, the net change in program revenues from the prior fiscal year for governmental activities is a decrease of $1,453,745. The net change in general revenues from the prior year is an increase of $634,773, for a total decrease in revenues of $818,972. The net change in expenses from the prior year was a decrease of $1,535,951. With total program and general revenues for fiscal year 2012/13 at $21,667,354 and total expenses at $19,373,402, the net activity resulted in an increase in Net Position of $2,293,952. An analysis and graphical representation of the changes in revenues and expenditures by type of significant events follows: CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 Revenues Although a number of revenue categories increased during FY 2012/13, the offset from large reductions in operating and capital grant revenues resulted in a net decrease of $818,972 in total program and general revenues. $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 (.;HART OF KEVENUE INCREASE OR Total Revenues by Category ■FY2011 /12 ■FY2012 /13 Noes V 04 cz"q Increases in Revenues Program Revenues decreases were offset by a substantial increase in one category: • Charge for Services revenue increased by $1,528,626 due in part to a more than $1 million increase in maintenance project revenues. Additional increases came from development revenues, a new solid waste surcharge for waste management expenses, and the new VLF surcharge for street maintenance. General Revenues increased $634,773 from the prior year. The most significant changes include: • A $695,812 increase in Property Tax revenue includes a one -time PTAF reimbursement payment of $177,881, with the remainder from increases in secured, unsecured, and document transfer taxes, illustrating a healthy resurgence in the housing market with property turnover and rising prices. • An increase of $85,974 in local taxes is a combination of increases in Transient Occupancy Tax ($22,779), and taxes related to the increase in construction activity: Supplemental Business License Tax ($23,241) and Construction Tax ($40,881). • A $67,360 increase in Franchise Tax came primarily from a jump in Solid Waste Fee revenue ($45,714), but also includes increases in Water Fees ($14,116) and Cable Fees ($18,996). Gas and Electric Fee decreases ($11,492) offset the increases. CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 Decreases in Revenues Program Revenues decreased substantially in grant revenues: • A decrease of $1,244,318 in Operating Grants is a result of two large one -time grants received in the prior year for 1) $750,000 for the purchase of land for future use as an open space park, and 2) $466,818 in Prop 1B grant revenue for street maintenance work. A $1,738,053 decrease in Capital Grants and Contributions is a result of 1) a reduction in one -time grant revenues received last year and 2) the change in grant policy to eliminate the accrual of all grant expenditures as receivables. Only grant expenditures which are reimbursed within 75 days of year end will be accrued, as is the standard for other types of receivables. Invoiced but unreimbursed receivables are offset through a unearned revenue journal. General Revenues decreased substantially in two categories: • A $144,241 decrease in Intergovernmental Revenue came from a reduction in Gas Tax revenue. The decrease in Gas Tax is a result of AB 1465 (2012). This legislation shifted a portion of Section 2103 funds to the State Highway account to backfill for funds transferred from that account to the State's General Fund to pay for transportation debt service. The State's reconciliation included adjustments to both 2011/12 and 2012/13 fiscal year allocations, causing the large decrease. • A $49,368 decrease in Sales Tax revenues resulted from a combination of the State's estimates which were too high in the prior year, which subsequently resulted in a FY 2011/12 overpayment and a reconciling reduction in FY 2012/13 payments to compensate for the overpayment. There were also several adjustments for incorrect prior year allocations. Expenses The FY 2012/13 net change in expenses for Governmental Activities was a decrease of $1,535,951 which came primarily from reductions in Public Works capital spending as illustrated in the chart below. CHART OF EXPENSE INCREASE OR (DECREASE) Total Expenses by Category ■FY 2011 /12 ■FY 2012/13 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 0 es ", lea �eb� 5COO, ti CO _ e CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 Increases in Expenses Significant increases in expenditures from the prior year occurred in several categories: • General and intergovernmental services increased by $695,901, primarily from the $245,444 payoff of the Ca1PERS side fund. Growth in labor and operational costs also contributed toward the increase. • Public Safety increased by $81,791 as a result of an increase in the cost of the Sheriffs law enforcement contract. • Community Development Services increased by $159,587, consisting of staff cost increases in the Development Services and Building and Inspection programs. Decreases in Expenses Notable decreases were related to a reduction in capital project expenditures: • Public Works (primarily street capital improvement projects) decreased in total by $2,200,086, and Community Services (primarily park capital improvement projects) decreased by $191,617. MAJOR AND OTHER GOVERNMENTAL FUNDS: CHANGE IN FUND BALANCE A summary of the changes in fund balance of the Major Funds and Other Governmental Funds is presented below: Total Revenues Total Expenditures Revenues Over (Under) Expenditures Transfers in Transfers out Net change in fund balances Beginning of year End of year Funds Capital General Improvement $ 17,635,988 $ 2,776,901 15,567,935 3,979,272 Other Governmental Funds $ 1,375,340 1,292,554 2,068,053 (1,202,371) 82,786 106,000 1,184,500 - (1,184,500) (106,000) - 989,553 (123,871) 82,786 8,929,121 3,544,205 1,424,919 $ 9,918,674 $ 3,420,334 $ 1,507,705 Included in the Major Funds are the General Fund and the Capital Improvement Funds. The Other Governmental Funds include twenty -five Lighting and Landscape Assessment Districts, accounted for as one fund in the financials and the Library Bond Debt Service Fund. The total net change from fiscal year transactions, including Major Funds and Other Governmental Funds, was an increase of $948,468. General Fund As shown in the preceding Major Funds table, the net change in the General Fund's ending fund balance is an increase of $989,553. A Net Gain is a result of the net operating revenues exceeding net operating expenditures. A number of the General Fund revenue categories increased from the prior year for a net revenue gain of $1,375,340, most notably property tax revenues and development related fees. The CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 addition of the Measure B tax revenue to fund street maintenance activities, and a solid waste surcharge to fund environmental programs contributed to the gain. General Fund revenues budgets are conservatively based upon prior year experience and revenue specific information; however the strengthening of the housing market at a fairly rapid pace and the added revenue streams resulted in a large positive variation from budgeted revenues. Expenditures are budgeted at anticipated program needs at not -to- exceed projected funding levels. With the increase development activity, related expenditures increased from the prior year. Additional increases came from salary and benefit cost increases, sheriff contract increases, and rising internal service fund costs. Capital Improvement Project Fund As shown in the table above, the net change in the Capital Improvement Fund decreased by $128,871 as a portion of the capital improvement project work completed over the course of the year utilized prior year funding in addition to current year funding. Other Governmental Funds Of the net $82,786 increase in Other Governmental Funds, the collective 25 Landscaping & Lighting funds comprise $59,444 of the total. The Library Bond debt service fund accounts for the remaining $23,342 of the increase. Both net gains represent the excess of revenue over expenditures in the normal course of operations. GENERAL FUND — BUDGETARY HIGHLIGHTS Changes from the City's General Fund original budget to the final budget are detailed in the Required Supplementary Information Section along with a comparison to actual activity for the year ended. Changes to the City's budget that increase or decrease appropriations in a fund must be approved by a resolution of the City Council. Modifications to the budget that are a realignment of fiscal activities with no impact to the fund's bottom line may be approved by the City Manager. Significant changes from the City's original budget to the final budget are summarized as follows: Revenues and Transfers In Revenues Transfers in Adopted to Final Budget Fiscal Year Ended June 30, 2013 Adopted Budget Final Budget Adjustments Budget $ 15,821,815 871,794 $ 16,693,609 $ 106,000 - $ 106,000 The General Fund adopted revenue budget was $15,821,815, and adopted transfers in was $106,000. At mid -year, budget adjustments were made to increase expected revenues. The Sheriff's Office provided the City with a very large contract refund of $303,294. This refund was not budgeted as refunds may or may not be received, and the amount is unknown at the time of budget adoption. Impacts from the upturn in the housing market coupled with historically low interest rates contributed to an expected $250,000 increase in property taxes, and $398,500 in various planning, building, and engineering fees. On the other hand, at mid -year Sales Tax was trending far below budget leading to a budget decrease of $60,000. By year -end, sales tax revenues had partially recovered, and were over budget by $15,000. CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 Meanwhile, historically low interest rates were continuing to fall even in the midst of the improving economy. This led to a $10,000 decrease in budgeted interest, from $55,100 to $45,100. Disappointingly, interest earning ended the year even lower, with $28,670 received. Another mid -year budgeted decrease came from the notification of another cell tower lease cancellation. However, Metro PCS continued their lease payment through the end of the fiscal year, so the budget reduction was not needed after all. The original amount of $106,000 of budgeted transfers in from Gas Tax funds to reimburse the General Fund for engineering, administrative, and project management staff time remained the only transfer in to the General Fund. Expenses and Transfers Out Expenditures Transfers out Adopted to Final Budget Fiscal Year Ended June 30, 2013 Adopted Budget Final Budget Adjustments Budget $ 15,803,048 366,311 $ 16,169,359 $ 735,000 449,500 $ 1,184,500 The General Fund adopted expenditure budget was $15,803,048 and adopted transfers out was $735,000. Budget adjustments were made at the City's mid -year review; City Council members approved: $245,444 to pay off the remaining Ca1PERS Employer Side Fund liability to reduce the employer contribution rate and generate approximately $30,000 in savings, $16,185 was appropriated to pay an unexpected West Valley Sanitation charge for their Employer Side Fund liability, and another $75,000 was appropriated for various operational funding increases, primarily related to street and parks maintenance. Additional budget adjustments of $30,000 for backup building inspector services and $18,225 for the purchase and installation of a new orchard well pump were approved later in the year. Transfers Out increased by $449,500. At mid -year, Council approved $60,000 be transferred out for the Civic Theater Master Plan Study, while $64,500 went to fund the Community Center's new wood floor. Later in the year, $45,000 was transferred for Parking District #3 lot repairs, and $280,000 to fund repairs for the Hakone Gardens Driveway damage caused by failed storm drains during a heavy winter storm. CAPITAL ASSETS The City of Saratoga elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting in which eligible infrastructure capital assets are not required to be depreciated if the following requirements are met: • The City manages the assets using an asset management system which requires that the City (1) perform an up -to -date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate the annual amount to preserve the assets at the established condition assessment level. • The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 City policy is to achieve an average Pavement Condition Index (PCI) rating of 70 for all streets, at minimum. The City's overall rating was 76 with 83% of streets rated as Excellent to Very Good, 14% of streets are rated as "Good ", 3% of streets rated "Poor ", and 0% of streets are rated as "Very Poor ". The City spent $2,856,603 to maintain and preserve eligible infrastructure assets. For more detailed information on Capital Assets activity, please refer to Note 4 in the section entitled "Notes to the Basic Financial Statements" and Note 2 in the "Required Supplementary Section ". The latest assessment study was conducted during the fall of 2010. A road assessment study update will be conducted in the fall of 2013. As of June 30, 2013, the City had $123,893,273 invested in a variety of capital assets as reflected in the following schedule, which represents an increase of $696,597 or a 0.6% increase from the prior year. Capital Assets at Year I%d Net of Depreciation The following reconciliation summarizes the changes in Capital Assets. Changes in Capital Assets Governmental Activities 2013 2012 Land $ 14,585,401 $ 14,510,401 Building and structures 18,203,584 16,969,831 Machinery and equipment 663,288 604,135 Infrastructure 82,825,336 83,945,356 Construction in progress 7,615,664 7,166,953 Total Capital Assets, Net of Depreciation $ 123,893,273 $ 123,196,676 The following reconciliation summarizes the changes in Capital Assets. Changes in Capital Assets Major capital projects in progress during fiscal year 2012/13 included the following expenditures: • Prospect Center /19548 Prospect - $113,452 • Library Improvements - $118,910 • Highway 9 Traffic Safety - $774,371 • Highway 9 Improvement — Phase III - $429,779 • Fruitvale Avenue Median - $125,954 • Village Sidewalk, Curb, and Gutters - $137,193 Balance Balance July 1, 2012 Additions Retirements Reclassification June 30, 2013 Land $ 14,510,401 $ - $ - $ 75,000 $ 14,585,401 Building and structures 23,611,590 - - 1,868,560 25,480,150 Machinery and equipment 2,422,782 104,243 (125,586) 68,887 2,470,326 Infrastructure 104,928,913 - - 97,878 105,026,791 Construction in progress 7,166,953 2,612,974 (53,938) (2,110,325) 7,615,664 Depreciation (29,443,963) (1,966,682) 125,586 - (31,285,059) Total Capital Assets, Net of Depreciation $ 123,196,676 $ 750,535 $ (53,938) $ - $ 123,893,273 Major capital projects in progress during fiscal year 2012/13 included the following expenditures: • Prospect Center /19548 Prospect - $113,452 • Library Improvements - $118,910 • Highway 9 Traffic Safety - $774,371 • Highway 9 Improvement — Phase III - $429,779 • Fruitvale Avenue Median - $125,954 • Village Sidewalk, Curb, and Gutters - $137,193 CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 • Hakone Gardens Driveway & Retaining Wall - $107,004 • GP Safety Element Upgrade - $164,958 Additional information on Capital Assets is included in Note 4 to the financial statements. DEBT AND OTHER LONG -TERM OBLIGATION ADMINISTRATION The net change in outstanding obligations for the City of Saratoga is a decrease of $501,126. Total long term bonded debt, net of premium decreased by $476,892. Outstanding compensated absences decreased by $24,234. Outstanding Long -Term Obligation at Year Fnd 2011 General Obligation Bond Net Original Issue Premuim Compensated absences Total Outstanding Debt Governmental Activities 2013 2012 $ 11,540,000 $ 11,995,000 415,954 437,846 621,979 646,213 $ 12,577,933 $ 13,079,059 The current portion of long -term debt ($485,000 for the refunded 2001 General Obligation Bonds for fiscal year 2013) and $21,892 of amortized net original premium, are classified as a current liability in the City's Statement of Net Position. General Obligation Bonds The City refunded the 2001 General Obligation Bonds and in their place issued General Obligation Bonds in the amount of $11,995,000 on July 14, 2011 with interest rates on the bonds ranging from 2.0% to 4.0 %, with final payment due August 1, 2031. Principal of $455,000 and interest of $412,485 were paid during the fiscal year. Compensated absences are accrued liabilities for vested and unpaid vacation and sick pay. The compensated absences balance decreased during the fiscal year by $24,234 due to use and payouts of unused compensated absences to retiring, terminated, and general employee payouts. An estimated current liability of $440,749 is expected to be used in the next fiscal year. Additional information on outstanding obligations can be found in Note 5 to the financial statements. ECONOMIC FACTORS At the time the fiscal year 2012/13 budget was developed in early spring of 2012, the economy had stabilized and the "new normal" was upon us. In this environment of economic uncertainty, stagnant revenues, and increasing demands from the community, the Council passed an austere budget. Conservative revenue projections were supported by decreases in labor costs and ongoing program expenditure reductions, resulting in a sustainable but restrictive Operating Budget. The Capital Improvement Program Budget, which is funded by residual funding, grant funding, and dedicated revenue streams such as Gas Tax, continued to construct projects with previously committed funding. New project funding however was impacted by the reduction in residual funding. Fortunately, as the prior fiscal year came to a close and the budget was adopted, a number of revenues CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 began to show improvement. The improvement continued over the course of the 2012/13 fiscal year: • General Fund Property Taxes increased in total by 8.29 %, ( or 6.74% if the County's one -time PTAF reimbursement payment is not included), with increases of almost $300,000 in Secured Property Tax, more than $63,000 in Unsecured Property Tax, and $52,000 in Transfer Tax. • Development related fee increases were driven upward with the Housing Market resurgence as evidenced by: ➢ Construction Tax and Supplemental Business License Tax revenue increases of 23% (based on building permit values) — equal to more than $64,000 ➢ Combined Planning and Building revenues jumped by 14% and Development Engineering revenues increased by 35% - equal to almost $300,000 • Transient Occupancy Tax, long an indicator of economic temperament, saw a strong uptick with an 11% increase — almost $23,000 Not all revenues reacted to a strengthening economy. Interest rates continued to slide downward to ever - new historical lows with a bleak outlook projected. Rental income also decreased, primarily from reduced soccer field rentals. Many other revenues remained flat — however General Fund expenses continued to increase. • Salary and Benefit costs increased by $335,000 (5.5 %), primarily due to rising benefit expenses. With new employee benefit levels reduced through the implementation of lower cost pension plans and the capping of medical benefits, future labor cost increases will be mitigated with the turnover of staff over time. • These labor costs also contributed to the $93,000 (2.3 %) increase in Sheriff Services, in combination with operational cost increases. Public Safety labor costs will also be mitigated as time goes on due to the new lower cost State regulated pension plans for public safety employees. Consultant and Contract Services grew by more than $244,000. This is in part attributable to $58,000 in backup building inspection services, a $40,000 increase in legal fees, $65,000 in additional street sweeping services, $22,000 in street maintenance services, and another $72,000 in park and landscape services. While a portion of these expenses are considered one -time costs (such as the building inspector backup and storm related costs), some will continue on and grow in future years. Overall, FY 2012/13 revenues grew at a faster pace than expenditures (net of transfers), both in dollars and percentage. The substantial revenue increase which occurred in FY 2012/13 helped to firm the City's long -term fiscal sustainability at current levels while allowing the reinstatement of some expenditure appropriations at mid -year in response to unplanned needs, and for operational right- sizing and flexibility. Outlook General Fund Revenues are not expected to continue on this rapid growth trajectory. Fiscal projections anticipate a leveling off in revenues as the initial rebound is tempered by economic hesitation. Fiscal uncertainty remains with us in this new normal, therefore the City plans to continue to maintain operations at core service levels in preparation of potential funding impacts. Potential revenue impacts include State takeaways of unprotected funding and changes in State directed revenue allocations. Known revenue impacts will come from reductions in capital funding grants, and from the elimination of road impact fees to fund ongoing street maintenance. Anticipated expenditure increases include rising Ca1PERS rates of approximately 50% over the next CITY OF SARATOGA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 seven years to fund the change in rate setting and assumption factors. In addition, aging infrastructure maintenance expenses are increasing as our city ages. Even new infrastructure increases maintenance expenses, such as the annual refinishing of the Community Center's new wood floor, or maintenance of new trails, and increased water bills for tree plantings and median improvements. In a long term status -quo projection, rising expenditures are certain, while revenue growth is not. As local governments do not have the ability to increase taxes or other revenues at a sufficient pace to maintain increasing operations, management must consider a long term view in the decision - making process. One of the hardest challenges the City faces is balancing community expectations against the fiscal reality of long -term operational practicality. The City continues to focus on this challenge. REQUEST FOR FINANCIAL INFORMATION This financial report is designed to provide a general overview of the City of Saratoga's finances for all of Saratoga's residents, taxpayers, customers, investors, and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Administrative Services Department, 13777 Fruitvale Avenue, Saratoga, California 95070. J SARA 1956 BASIC FINANCIAL STATEMENTS 179 This page is intentionally blank CITY OF SARATOGA STATEMENT OF NET POSITION JUNE 30, 2013 Noncurrent Assets: Primary Government Capital Assets: Governmental Non - depreciable Activities AS SETS 52,536,589 Current Assets: 123,893,273 Cash and investments $ 17,162,776 Receivables: 142,540,053 Accounts 1,474,194 Interest 9,810 Total Current Assets 18,646,780 Noncurrent Assets: 909,533 Capital Assets: 118,480 Non - depreciable 71,356,684 Depreciable, net 52,536,589 Total Capital Assets 123,893,273 Total Noncurrent Assets 123,893,273 Total Assets 142,540,053 LIABILrr]ES Current Liabilities: Accounts payable 909,533 Accrued payroll 118,480 Other payable 30,675 Interest payable 169,973 Deposits payable 1,027,607 Claims payable 24,800 Long -term obligations - due within one year 947,641 Total Current Liabilities 3,228,709 Noncurrent Liabilities: Long -term obligations - due in more than one year 11,629,992 Total liabilities 14,858,701 Net Pos ition Net investment in capital assets 112,353,273 Restricted for: Environmental funds 463,182 Special assessment funds 621,948 Debt service 885,757 Total Restricted 1,970,887 Unrestricted 13,357,192 Total Net Position $ 127,681,352 The accompanying notes are an integral part of these financial statements 27 CITY OF SARATOGA STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION JUNE 30, 2013 General Revenues: Taxes Property taxes 9,152,499 Net (Expense) 1,051,121 Local taxes 769,357 Franchise taxes 1,919,750 Motor vehicle -in -lieu Revenue and Totaltaxes 12,909,129 Intergovernmental 766,090 Investment earnings 50,562 Changes in 112,906 Total General Revenues 13,838,687 Program Revenues 2,293,952 Net Position 125,387,400 Net Position - End of Year $ 127,681,352 Primary Operating Capital Government Charges for Grants and Grants and Governmental Functions /Programs Expenses Services Contributions Contributions Total Activities Primary Government: Governmental Activities: General and intergovd services $ 4,143,254 $ 101,839 $ - $ $ 101,839 $ (4,041,415) Public safety 4,381,644 607,552 75,000 682,552 (3,699,092) Public works 6,921,349 3,315,633 - 599,067 3,914,700 (3,006,649) Community services 1,804,331 945,794 - - 945,794 (858,537) Community development services 1,712,706 2,183,782 - - 2,183,782 471,076 Interest on long -term debt (unall.) 410,118 - - - (410,118) Total $ 19 373 402 $ 7 154 600 $ 75 000 $ 599 067 $7828667 $ (11.544.735) General Revenues: Taxes Property taxes 9,152,499 Sales taxes 1,051,121 Local taxes 769,357 Franchise taxes 1,919,750 Motor vehicle -in -lieu 16,402 Totaltaxes 12,909,129 Intergovernmental 766,090 Investment earnings 50,562 Otherrevenues 112,906 Total General Revenues 13,838,687 Change in Net Position 2,293,952 Net Position - Beginning of Year 125,387,400 Net Position - End of Year $ 127,681,352 The accompanying notes are an integral part of these financial statements 28 CITY OF SARATOGA GOVERNMENTAL FUNDS - BALANCE SHEET JUNE 30, 2013 Mai or Funds The accompanying notes are an integral part of these financial statements Other Total Capital Governmental Governmental General Improvement Funds Funds ASSETS Cash and investments $10,763,288 $ 3,155,295 $ 1,527,516 $15,446,099 Receivables: Accounts 546,897 850,249 392 1,397,538 Interest 9,088 - 722 9,810 Total assets $11,319,273 $ 4,005,544 $ 1,528,630 $16,853,447 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 341,995 $ 480,748 $ 20,925 $ 843,668 Accrued payroll 103,814 962 - 104,776 Deposits payable 924,107 103,500 - 1,027,607 Other payable 30,675 - - 30,675 Unearned revenue 8 - - 8 Total liabilities 1,400,599 585,210 20,925 2,006,734 Fund Balances: Restricted: Environmental services 463,182 - - 463,182 Special assessment funds - - 621,948 621,948 Debt service - - 885,757 885,757 Committed: Capital improvement program - 3,420,334 - 3,420,334 Hillside stability 675,000 - - 675,000 Assigned: Future capital & efficiency 418,714 - - 418,714 Carryforwards 73,101 - - 73,101 Facility replacement 300,000 - - 300,000 Unassigned: Working capital 2,923,096 - - 2,923,096 Fiscal stabilization 1,500,000 - - 1,500,000 Compensated absences 207,268 - - 207,268 Development services 667,233 - - 667,233 Other unassigned 2,691,080 - - 2,691,080 Total fund balances 9,918,674 3,420,334 1,507,705 14,846,713 Total liabilities and fund balances $11,319,273 $ 4,005,544 $ 1,528,630 $ 16,853,447 The accompanying notes are an integral part of these financial statements CITY OF SARATOGA RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2013 Total Fund Balances - Total Governmental Funds Amounts reported for governmental activities in the statement of net position were different because: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. The capital assets were adjusted as follows: Non - depreciable capital assets Depreciable capital assets, net Total Capital Assets Interest payable on long -term debt did not require current financial resources. Therefore, interest payable was not reported as a liability in Governmental Funds Balance Sheet. Internal service funds are used by management to charge the costs of office stores, vehicle and equipment maintenance and replacement, information services and replacement, building maintenance, risk management, and workers compensation. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net position Long -term receivables were not current available resources and therefore, were offset by a deferred revenue amount equal to the net receivable in the governmental funds. Long -term obligations were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. The long -term liabilities were adjusted as follows: General obligation bonds Compensated absences Net original issue premium Total Long -Term Obligations Net Position of Governmental Activities The accompanying notes are an integral part of these financial statements 30 $ 14,846,713 71,356,684 52,435,617 123.792.301 (169,973) 1,723,790 66,154 (11,540,000) (621,679) (415,954) (12,577,633) $ 127,681,352 CITY OF SARATOGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGE IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2013 EXPENDITURES: Current: General and intergovernmental services Major Funds - - 3,268,524 Public safety 4,391,844 Other Total 4,391,844 Public works Capital Governmental Governmental REVENUES: General Improvement Funds Funds Property taxes $ 8,959,231 $ - $ 193,634 $ 9,152,865 Special assessments 7,165 - 1,177,890 1,185,055 Sales taxes 1,051,121 - - 1,051,121 Other local taxes 769,357 - - 769,357 Licenses & permits 1,543,277 633,197 - 2,176,474 Fines & forfeiture 180,557 18,462 - 199,019 Intergovernmental - Federal - 974,826 - 974,826 Intergovernmental - State 364,488 777,704 - 1,142,192 Intergovernmental - Other 51,999 217,401 - 269,400 Franchise fees 1,919,750 - - 1,919,750 Use of money and property 492,366 31,130 3,816 527,312 Other revenue 2,296,677 124,181 - 2,420,858 Total revenues 17,635,988 2,776,901 1,375,340 21,788,229 EXPENDITURES: Current: General and intergovernmental services 3,268,524 - - 3,268,524 Public safety 4,391,844 - - 4,391,844 Public works 4,542,221 - 423,644 4,965,865 Community services 1,318,493 - - 1,318,493 Community development services 2,046,853 - - 2,046,853 Capital outlay - 3,979,272 - 3,979,272 Debt service: Principal - - 455,000 455,000 Interest and fiscal charges - - 413,910 413,910 Total expenditures 15,567,935 3,979,272 1,292,554 20,839,761 REVENUES OVER (UNDER) EXPENDITURES 2,068,053 (1,202,371) 82,786 948,468 OTHER FINANCING SOURCES (USES): Transfers in 106,000 1,184,500 - 1,290,500 Transfers out (1,184,500) (106,000) - (1,290,500) Total other financing sources (uses) (1,078,500) 1,078,500 - - Net change in fund balances 989,553 (123,871) 82,786 948,468 FUND BALANCES: Beginning of year 8,929,121 3,544,205 1,424,919 13,898,245 End of year $ 9,918,674 $ 3,420,334 $ 1,507,705 $ 14,846,713 The accompanying notes are an integral part of these financial statements. 31 CITY OF SARATOGA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE GOVERNMENT -WIDE STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION FOR THE YEAR ENDED JUNE 30, 2013 Net Change in Fund Balances - Total Governmental Funds $ 948,468 Amounts reported for governmental activities in the Statement of Activities and Changes in net position were different because: Governmental Funds report capital outlay as expenditures. However, in the Government -Wide Statement of Activities and Changes in net position, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period. 2,578,741 Depreciation expense on capital assets was reported in the Government -Wide Statement of Activities and Changes in net position, but it did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the Governmental Funds. (1,916,967) Internal service funds are used by management to charge the costs of office stores, vehicle and equipment maintenance and replacement, information services and replacement, building maintenance, risk management, and workers' compensation. The net revenue or (excess expenses) of the internal service funds is reported with government activities. 205,192 Certain revenues were not recorded or recorded as unearned revenue in the governmental funds because they did not meet the revenue recognition criteria of availability. However, they were included as revenue in the Government -Wide Statement of Activities and Changes in Net Assess under the full accrual basis. (26,700) Long -term compensated absences and claims payables were reported in the Government -Wide Statement of Activities and Changes in net position, but they did not require the use of current financial resources. Therefore, long -term compensated absences and claims payable were not reported as expenditures in governmental funds. Compensated absences 24,534 Repayment of bond principal was an expenditure in governmental funds, but the repayment reduced long -term liabilities in the Government -Wide Statement of net position. Long -term debt repayments 455,000 Revenues resulting from the refunding of outstanding debt are not available to pay current- period expenditures and therefore, are revenue in the funds. Net original issue premium 21,892 Interest expense on long -term debt was reported in the Government -Wide Statement of Activities and Changes in net position, but it did not require the use of current financial resources. Therefore, interest expense was not reported as expenditures in governmental funds. The following amount represented the change in accrued interest from prior year. 3,792 Change in Net Position of Governmental Activities $ 2,293,952 The accompanying notes are an integral part of these financial statements 32 CITY OF SARATOGA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2013 Noncurrent assets: Governmental Capital assets: Activities - Machinery and equipment Internal Less: accumulated depreciation Service Funds ASSETS 13,704 Current assets: 100,972 Cash and investments $ 1,716,677 Accounts receivable 10,510 Total current assets 1,727,187 Noncurrent assets: Capital assets: Machinery and equipment 792,003 Less: accumulated depreciation (691,031) Total capital assets (net of 13,704 accumulated depreciation) 100,972 Total assets 1,828,159 LIABILITIES Liabilities: Current assets: Accounts payable 65,865 Accrued payroll 13,704 Other payables 24,800 Total current liabilities 104,369 NET POSITION Net Investment in capital assets 100,972 Unrestricted 1,622,818 Total net position $ 1,723,790 The accompanying notes are an integral part of these financial statements 33 CITY OF SARATOGA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2013 Operating revenues: Charges for services Other operating revenues Total operating revenues Operating expenses: Cost of services Administration Depreciation Total operating expenses Operating income (loss) Transfers out Change in net position Total net position - beginning Total net position - ending Governmental Activities - Internal Service Funds $ 2,181,236 51,052 2,232,288 1,056,626 920,755 49,715 2,027,096 205,192 205,192 1,518,598 $ 1,723,790 The accompanying notes are an integral part of these financial statements 34 CITY OF SARATOGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS JUNE 30, 2013 Cash flows from operating activities: Receipts from customers and users Payments to suppliers Payments to employees Net cash provided (used) by operating activities Cash flows from capital activities: Acquisition of capital assets Net cash provided for the acquisition of capital assets Net increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, ending of year Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Change in operating assets and liabilities: Accounts receivables Accounts payable Claims payable Accured payroll Net cash provided (used) by operating activities The accompanying notes are an integral part of these financial statements 35 Governmental Activities - hiternal CPrvicP Fnnd- $ 2,252,252 (1,159,767) (807,770) 284,715 (84,537) (84,537) 200,178 1,516,499 $ 1,716,677 $ 205,191 49,715 19,964 6,077 3,553 215 $ 284,715 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Saratoga, California, (the City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Financial Reporting Entity The City was incorporated as a municipal corporation in 1956 under the general laws of the State of California, and had a population of 30,363 at June 30, 2013. The City is a largely residential community located in the foothills of the Santa Cruz Mountains. The City operated under the Council- Manager form of government, with five- elected Council members served by a full -time City Manager and staff. At June 30, 2013, the City's staff comprised 54 full -time and nine part-time employees, and numerous recreation seasonal employees who were responsible for the following City provided services: • Public Safety - The City provides round- the -clock police services under a contract with the Santa Clara County Sheriffs offices. Emergency management and Fire services are provided by a special district. Code enforcement and inspection services are provided by City employees. • Public Works/Maintenance - The City builds and maintains its parks, streets, curbs, gutters, and related public property with a force of 22 employees. Major projects may be contracted out to reduce costs. • Community Development - Zoning administration, plan checking and advance planning services are provided by 12 employees. • Culture, Recreation and Community Support services are provided by a total of 10 employees. • General Government services are provided by a total of 11 employees. As required by GAAP, these basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City Council acts as the governing board. In addition, the City staff performs all administrative and accounting functions for these entities and these entities provide their services entirely to the City. Blended component units, although legally separate entities are, in substance, part of the City's operations and data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the government -wide financial statements to emphasize their legal separateness from the City. Each blended component unit has a June 30 year -end. The City had no discretely presented component units. The following entity is reported as blended component unit: Lighting and Landscaping Assessment District - The Lighting and Landscaping Assessment District (the District) was established in 1980, for the levy and the collection of assessments upon the several lots or parcels of land in the District, and for the construction or installation of improvements, including maintenance. The District is reported as a blended component unit of the City because it has the same 36 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 Governing Board as the City. The activity for the District has been included in the accompanying basic financial statements and no separate financial statements are issued. B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government -Wide Financial Statements The City's government -wide financial statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental activities for the City. Fiduciary activities of the City are not included in these statements. These statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets, deferred outflows of resources, liabilities, deferred inflows of resources (including capital assets, as well as infrastructure assets, and long -term liabilities), are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: Charges for services Operating grants and contributions Capital grants and contributions Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated. The following interfund activities have been eliminated: • Transfers in/Transfers out • Internal Service Fund charges • Land and Lighting District Service Fees Deferred Outflows /Deferred Inflows Deferred outflows of resources is a consumption of net assets by the City that is applicable to a future reporting period. For example, prepaid items and deferred charges. Deferred inflows of resources is an acquisition of net assets by the City that is applicable to a future reporting period. For example, unearned revenue and advance collections. 37 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 Unearned Revenue Unearned revenue arises when assets are received before revenue recognition criteria have been satisfied. Grants and entitlements received before eligibility requirements are met are recorded as deferred inflows from unearned revenue. In the governmental fund financial statements, receivables associated with non- exchange transactions that will not be collected within the availability period have been recorded as deferred inflows from unearned revenue. Governmental Fund Financial Statements Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government -wide financial statements. The City has presented all major funds that met the applicable criteria. The following funds are major funds: General Fund The General Fund is used to account for all of the general resources of the City not specifically levied or collected for other City funds and the related expenditures. The General Fund accounts for all financial resources of the City which are not accounted for in another fund. Capital Improvement Capital Projects Fund This fund accounts for resources used for the major capital acquisition and construction activities. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Accordingly, revenues are recorded when received in cash, except that revenues subject to accrual (up to 45 days after year -end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, special assessments, intergovernmental revenues, other taxes, interest revenue, rental revenue and certain charges for services. Fines, forfeitures, licenses and permits and parking meter revenues are not susceptible to accrual because they are usually not measurable until received in cash. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Unearned revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Unearned revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when 38 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 the government has a legal claim to the resources, the unearned revenue is removed from the combined balance sheet and revenue is recognized. Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. Proprietary Funds The City's internal service funds are proprietary funds. In the fund financial statements, proprietary funds are presented using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when the related goods or services are delivered. In the fund financial statements, proprietary funds are presented using the "economic resources measurement focus ". This means all assets, deferred outflows of resources, liabilities (whether current or noncurrent) and deferred inflows of resources associated with their activities are included on their balance sheets. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in total net position. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal value. Non - operating revenues, such as subsidies, taxes, and investment earnings result from nonexchange transactions or ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the internal service funds financial statements. Internal service funds account for charges to City departments for services provided, on a cost reimbursement basis, in the following areas: general liability, workers' compensation, office stores, information technology services, vehicle maintenance, building maintenance, equipment replacement, and information technology replacement. Fiduciary Fund Financial Statements During fiscal year 2012/12 the City has no fiduciary responsibility as prior reported agency funds have been transferred to other outside government agencies. C. Cash, Cash Equivalents and Investments The City pools its available cash for investment purposes. The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. Deposit and Investment Risk Disclosures - In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: • Interest Rate Risk • Credit Risk — Overall — Custodial Credit Risk — Concentrations of Credit Risk • Foreign Currency Risk CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 Other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year -end and other disclosures. The City participates in an investment pool managed by the State of California titled Local Agency Investment Fund (LAIF), which has invested a portion of the pool funds in Structured Notes and Asset Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset - Backed Securities are subject to market risk as to change in interest rates. D. Interfund Transactions Interfund services provided and used are accounted for as revenue, expenditures or expenses, as appropriate. Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it that are properly applicable to another fund are recorded as expenditures /expenses in the reimbursed fund. All other interfund transactions, except for interfund services provided and used and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as transfers. E. Capital Assets Capital assets, which include land, buildings, improvements, furniture, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental activities in the government -wide financial statements. Capital assets were recorded at historical cost or estimated historical cost if actual cost was not available. Donated assets were valued at their fair market value on the date of donation. City policy has set the capitalization threshold for reporting capital assets at $10,000. The City has chosen the Modified Approach for reporting the streets subsystem of infrastructure capital assets. Depreciation is recorded on a straight -line basis over the useful lives of the assets as follows: Buildings and structures Machinery and equipment Infrastructure 40 Years 5 to 10 Years 15 to 50 Years In June 1999, GASB issued Statement No. 34 Basic Financial Statements — and Management's Discussion and Analysis —for State and Local Governments which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with Statement No. 34, the City has included the value of all infrastructure in its basic financial statements. The City defines infrastructure as the basic physical assets that allow the City to function, which includes the street system, park and recreation lands and improvements system; storm water conveyance and drainage system, buildings combined with site amenities such as parking and landscaping areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the 40 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 subsystems. The City elected to use the Modified Approach as defined by GASB Statement No. 34 for infrastructure reporting of its streets, concrete and asphalt pavements. The City commissioned a physical assessment of the streets condition as of June 30, 2010. This condition assessment was performed in the fall of 2010 with the final report presented in March, 2012. A Pavement Condition Index (PCI) was assigned to each street segment. The index is expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned to segments of street that have the physical characteristics of a new street. The following conditions were defined: Condition Rating Excellent 80- 100 Very Good 70-79 Good 50-69 Poor 25-49 Very Poor 0-24 The City's policy relative to maintaining the street assets is to achieve an average rating of 70 for all street segments. This acceptable rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. For all other infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. An appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition. Original costs were developed in one of three ways: 1) historical records; 2) standard unit costs appropriate for the construction/acquisition date; or 3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, unrecovered cost method was computed using industry accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost. F. Interest Payable In the government -wide financial statements, interest payable of long -term debt is recognized as an incurred liability for governmental fund types. The City has not allocated the interest on long -term debt to departments. In the fund financial statements, governmental fund types do not recognize the interest payable when the liability is incurred. Interest on long -term debt is recorded in the fund statements when payment is made. G. Claims Payable The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "incurred but not reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities. 41 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 K Compensated Absences In the government -wide financial statements, compensated absences are recorded as incurred and the related expenses and liabilities are reported. In the fund financial statements, compensated absences are recorded as expenditures in the years paid, as it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. Only the amounts which become due at June 30 are reported in the fund financial statements as a liability. L Long- Term Obligations In the government -wide financial statements, long -term debt and other long -term obligations are reported as liabilities in the applicable governmental activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financial sources. Premiums received on debt issuance are reported as other financing sources while discounts on debt issuance reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. J. Fund Balances In February 2009, the Governmental Accounting Standards Board (GASB) issued Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. This standard left unchanged the total amount reported as fund balance, but substantially altered the categories and terminology used to describe its components. Rather than focus on financial resources available for appropriation, the new categories focus on "the extent for which the government is bound to honor constraints in the specific purposes for which amounts in the reserve can be spent ". The components of fund balance are now categorized as follows: "non- spendable fund balance ", resources that are inherently non - spendable from the vantage point of the current period; "restricted fund balance ", resources that are subject to enforceable legal restrictions; "committed fund balance ", resources whose specified use is constrained by limitations the government entity imposes upon itself through formal action at its highest level of decision making and remains binding unless removed in the same manner; "assigned fund balance ", resources that reflects a government's intended general use of resources, such intent would have to be established at either the highest level of decision making, by a body, or an official designated for that purpose; and "unassigned fund balance ", net resources in excess of what can properly be classified in one of the other four categories. Currently, the City's fund balance reserves fall into one of the four spendable categories; restricted, committed, assigned, or unassigned fund balance. The City maintains three restricted fund balances constrained by external legal restrictions that can be spent only for the stipulated purposes. These fund balances are: • Special Assessments Fund Balance — collectively represents year -end fund balances of twenty - five landscape and/or lighting assessment districts which use is restricted to the individual district. EAW CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 Environmental Services Fund Balance — represents surcharges collected on solid waste bills for use as supplemental funding of Environmental Services program fees for household hazardous waste fees, storm drain, street sweeping, and other pollution mitigation expenses related to integrated waste programs and storm water management. These funds are used to supplement environmental expenditures by using $50,000 per year; however these reserve funds were not transferred for use in FY 2012/12 due to additional revenue available for these programs. Debt Service Fund Balance — represents funding collected for and use in the City's general obligation bond debt originally issued in 2001. The committed category, in which fund balance is constrained by limitations that the government imposes upon itself at its highest level of decision making by formal vote, and remain binding unless removed in the same manner, includes the following: • Capital Improvement Program (CIP) Fund Balance — represents the collective balance of funding appropriated for specific capital improvement projects. Capital Projects are funded through direct revenues or budgeted transfers for improvement work within the following program funds: Streets, Park & Trail, Facility, or Administrative Improvements. Hillside Stability - funding set aside for use either in emergency repairs or high -cost and non- routine mitigation of hillside or landslide projects. In the assigned category, fund balance reflects an intended use as established by Council. Use of Assigned Fund Balance is approved by formal vote of the Council, or the City Manager who is authorized to assign amounts to a specific purpose, either through specific action, fund balance policy, or through budget direction and approval. This category includes the following reserves: Future Capital & Efficiency Funding - represents General Fund funding set aside for capital and/or efficiency projects but not yet committed for a specific improvement project. • Facility Replacement Reserve —represents accumulated funding for the future replacement, major rehabilitation, or new construction of City -owned facilities. This funding is to be used for funding the construction or provide for the services of related debt, but is not yet committed for a specific improvement project. • Carryforward — represents either prior -year funds designated for one -time operational activities not yet completed by year -end, or to carryforward prior -year funding for specific activities as directed by Council. Carryover funds are appropriated for use in the following fiscal year. The Unassigned Fund Balance category represents funding which may be held for specific types of uses or stabilization purposes, but is not yet directed to be used for a specific purpose. Reserve amounts are determined by, and align with, fund policy direction. 43 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 • Working Capital Reserve — provides funds for cash flow. Council policy set aside $2,000,000 on July 1, 1999, to be increased annually by an amount equal to the interest the City earned on the equivalent amount of cash and investments. As of June 30, 2013 this fund balance has grown to $2,923,096. This fund balance is not appropriated for use. • Fiscal Stabilization Reserve — Council policy is to maintain $1,500,000 for use by Council direction in case of disasters, emergencies, and economic downturns. • Development Services Reserve— represents reserve funds collected for development services to be used to support multi -year funding levels for zoning administration, inspection services, and development regulation programs during periods where expenditures exceed revenues. • Compensated Absences Reserve — represents reserve funding for employee payout compensation equal to the one -third of annual liability balance. This funding level is anticipated to be the maximum potential payout in excess of budgeted salary in a fiscal year. • Other Unassigned Fund Balance — represents funding not yet appropriated or assigned for use. Council policy is to maintain a minimum of $500,000 in unassigned funds as a buffer for unplanned expenditures or revenue shortfalls. Flow Assumption / Spending Order Policy — When expenditures are incurred for purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to be spent first. When expenditures are incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to be spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has directed otherwise. K. Net Position In the government -wide financial statements, net position is classified in the following categories: Net Investment in Capital Assets — This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that attributed to the acquisition, construction, or improvement of the assets. In addition, deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt also are included in the net investment in capital assets component of net position Restricted Net Position — This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. • Unrestricted Net Position — This amount is all net position that does not meet the definition of "net investment in capital assets" or "restricted net position." L. Use of RestrictedVnrestricted Net Position When an expense is incurred for purposes for which both restricted and unrestricted net position are available, the City's policy is to apply restricted net position first. 44 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 M. Property Tax and Special Assessments County tax assessments include secured and unsecured property taxes and special assessments. "Unsecured" refers to taxes on personal property. These tax assessments are secured by liens on the property being taxed. Revenue is recognized in the period for which the tax and assessment is levied. The County of Santa Clara levies, bills and collects property taxes for the City, the County remits the entire amount levied and handles all delinquencies, retaining interest and penalties. Secured and unsecured property taxes are levied on January 1. Secured property tax is due in two installments on November 1 and February 1, and becomes a lien on those dates. It becomes delinquent on December 10 and April 10, respectively. Unsecured property tax is due on July 1 and becomes delinquent on August 31. N. Use of Estimates The preparation of basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. O. Subsequent Events Management has considered subsequent events through November 12, 2013, the date which the financial statements were available to be issued. Management has reviewed subsequent events and transactions that occurred after the date of the financial statements through the date through November 12, 2013. The financial statements include all events or transactions, including estimates, required to be recognized in accordance with generally accepted accounting principles. Management has determined that there are no non - recognized subsequent events that require additional disclosure. P. New GASB Pronouncements GASB Statement No. 60 - In November, 2010, GASB issued Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to service concession arrangements, which are a type of public - private or public - public partnership. This pronouncement is effective for periods beginning after December 15, 2012. The City does not believe there will be a significant financial statement effect related to this Statement. GASB Statement No. 61 – In November, 2010, GASB issued Statement No. 61, The Financial Reporting Entity: Omnibus —an amendment of GASB Statements No. 14 and No. 34. The objective of this Statement is to improve financial reporting for a governmental financial reporting entity. The requirements of Statement No. 14, The Financial Reporting Entity, and the related financial reporting requirements of Statement No. 34, Basic Financial Statements —and Management's Discussion and Analysis —for State and Local Governments, were amended to better meet user needs and to address reporting entity issues that have arisen since the issuance of those Statements. This pronouncement is effective for periods beginning after June 15, 2013. The City does not believe there will be a significant financial statement effect related to this Statement. 45 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 GASB Statement No. 62 – In December, 2010, GASB issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. The objective of this Statement is to incorporate into the GASB's authoritative literature certain accounting and financial reporting guidance that is included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: 1. Financial Accounting Standards Board (FASB) Statements and Interpretations 2. Accounting Principles Board Opinions 3. Accounting Research Bulletins of the American Institute of Certified Public Accountants' ( AICPA) Committee on Accounting Procedure. This pronouncement is effective for periods beginning after December 15, 2012. The City does not believe there will be a significant financial statement effect related to this Statement. Statement No. 63 - In June, 2012, GASB issued Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Concepts Statement No. 4, Elements of Financial Statements, introduced and defined those elements as a consumption of Net Position by the government that is applicable to a future reporting period, and an acquisition of Net Position by the government that is applicable to a future reporting period, respectively. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. Concepts Statement 4 also identifies net position as the residual of all other elements presented in a statement of financial position. This Statement amends the net asset reporting requirements in Statement No. 34, Basic Financial Statements -and Management's Discussion and Analysis for State and Local Governments, and other pronouncements by incorporating deferred outflows of resources and deferred inflows of resources into the definitions of the required components of the residual measure and by renaming that measure as net position, rather than net assets. The provisions of this Statement were effective as of July 1, 2012 and did not have a significant impact on the City's financial statements. Statement No. 64 - In June, 2012, GASB issued Statement No. 64, Derivative Instruments: Application of Hedge Accounting Termination Provisions —an amendment of GASB Statement No. 53. The objective of this Statement is to enhance comparability and improve financial reporting by clarifying the circumstances in which hedge accounting should continue when swap counterparty or a swap counterparty's credit support provider is replaced. This pronouncement is effective for financial statements for periods beginning after June 15, 2012. The City has determined this Statement change will not have an effect on the financial statements. Statement No. 65 - In March, 2013, GASB issued Statement No. 65, Items Previously Reported as Assets and Liabilities. This Statement establishes accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognizes, as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. This Statement amends the financial statement element classification of certain items previously reported as assets and liabilities to be consistent with the definitions in Concepts Statement 4. The provisions of this Statement are effective for financial statements for periods beginning after December 15, 2012. However, the City has chosen to implement these reporting requirements as of July 1, 2012. This statement did not have a significant impact on the City's financial statements. 46 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 Statement No. 66 - In March, 2013, GASB issued Statement No. 66, Technical Correction — 2013 — an amendment of GASB Statement No. 10 and No. 62. The objective of this Statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54, Fund Balance Reporting and Government Fund Type Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. The City does not believe there will be a significant financial statement effect related to this Statement. Statement No. 67 - In June, 2013, GASB issued Statement No. 67, Financial Reporting for Pension Plans — amendment of GASB Statement No. 25. The objective of this Statement is to improve financial reporting by state and local government pension plans. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regards to providing decision - useful information, supporting assessments of accountability and inter - period equity, and creating additional transparency. The City is in the process of determining the impact this statement will have on the financial statements. Statement No. 68 - In June, 2013, GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27. The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local government employers about financial support for pensions that is provided by other entities. The City is in the process of determining the impact this statement will have on the financial statements. Statement No. 69 — In January, 2013, GASB issued Statement No. 69, Government Combinations and Disposal of Government Operations. This Statement establishes accounting and financial reporting standards related to government combinations and disposal of government operations. As used in this Statement, combinations includes a variety of transactions referred to as mergers, acquisitions, and transfers of operations. The City believes there will be no financial statement effect related to this Statement. Statement No. 70 — In April, 2013, GASB issued Statement No 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. Some governments extend financial guarantees for the obligations of another government, a not - for -profit entity, or private entity without directly receiving equal or approximately equal value in exchange (a nonexchange transaction). The City does not participate in nonexchange transactions and this Statement will have no financial statement effect. 47 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 NOTE 2 - CASH AND INVESTMENTS The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds, which the City Treasurer invests to enhance interest earnings. The pooled interest earned is allocated to the funds based on average month -end cash and investment balances in these funds. The City has the following cash and investments at June 30, 2013: Cash and investments The City's Cash and Investments at June 30, 2013, in more detail: Cash and cash equivalents: Petty cash Demand deposits Total Cash and Cash Equivalents Investments: Local Agency Investment Fund (LAIF) Total Cash and Investments A. Cash Deposits Statement of Net Position Governmental Activities $ 17,162,776 $ 1,450 290,297 291,747 16,871,029 $ 17,162, 776 The carrying amounts of the City's cash deposits were $291,747 at June 30, 2013. Bank balances before reconciling items were $347,976 at that date due to deposits in transit and outstanding checks. The total amount was collateralized or insured with securities held by the pledging financial institutions. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest, and places the City ahead of general creditors of the institution. The market value of pledged securities must equal at least 110 percent of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes that have a value of 150 percent of the City's total cash deposits. The City has waived the collateral requirements for cash deposits which are fully insured to $250,000 by the Federal Deposit Insurance Corporation (FDIC). Demand deposits (non- interest bearing checking accounts) have unlimited insurance through the TAG Program. Other accounts are insured up to $250,000 per custodian within agency. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income from cash and investments with fiscal agents is credited directly to the related fund. 48 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 B. Investments Under the provisions of the City's investment policy, and in accordance with California Government Code, the following investments are authorized: • Securities of the U.S. Government or its agencies. • Certificates of Deposit (or Time Deposits) placed with commercial banks and/or savings and loan companies. • Negotiable Certificates of Deposit. • California Local Agency Investment Fund. • Investment -grade obligations of State, local governments or public authorities. • Money market mutual funds. • Passbook savings account and demand deposits. The City is in compliance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investments Pools which requires the City's investments be recorded at fair value instead of cost. Under GASB 31, the carrying value of investments are adjusted to reflect their fair value at each fiscal year -end, with the effects of these adjustments included in the carrying value of the investments. C. External Investment Pool The City's investments with LAIF at June 30, 2013, include a portion of the pool funds invested in Structured Notes and Asset - Backed Securities. These investments include the following: • Structured Notes - debt securities (other than asset - backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. • Asset - Backed Securities - the bulk of which are mortgage- backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The approved investments policy is listed on the LAIR website, located at http://www.treasurer.ca.gov/pmia-laif/ As of June 30, 2013, the City had $16,871,029 invested in LAIR The LAIF fair value factor of 1.000273207 was used to calculate the fair value of the investments in LAIF. 49 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 D. Risk Disclosures Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the term of an investment's maturity, the greater the sensitivity to changes in market interest rates. Although the City's investment policy allows for a broad range of investment instruments with varying terms of maturity, investments are limited to the Local Agency Investment Fund (LAIF) which is managed by the State Treasurer Office and overseen by the Pooled Money Investment Board, the State Treasurer investment committee, and a Local Agency Advisory Board. Included in LAIF's investment portfolio are U.S. Treasuries, Federal Agency obligations, time deposits, negotiable certificates of deposits, commercial paper, corporate bonds, and security loans. Funds are available for withdrawal on demand, and are recorded on an amortized cost basis. At June 30, 2013, these investments had a weighted average maturity of 278 days. The City had the following invested in LAIF: Investment Maturities in Years Fair Less Than Value One Year State of California - Local Agency Investment Flmd (LAIF) $ 16,871,029 $ 16,871,029 Credit Risk As of June 30, 2013, the City's investments in external investment pools are unrated. The City only invests in LAIF, therefore has no other policy relating to the credit risk of investments. Custodial Credit Risk For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City did not hold any securities through investment counterparties at the year ended June 30, 2013. 50 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 NOTE 3 - FUND FINANCIAL STATEMENTS INTERFUND TRANSACTIONS Transfers WOW Transfers for the year ended June 30, 2013 were as follows: Transfer in Transfer out Amount General Fund Capital Improvement Fund $ 106,000 Capital Improvement Fund General Fund 1,184,500 Total $ 1,290,500 The General Fund received monies from the Capital Improvement from the Gas Tax fund for general administration of $106,000. The Capital Improvement Fund received monies from the General Fund from the adopted budget of $100,000 for annual facility improvement projects, $300,000 for the Saratoga to Sea Master Plan, $475,000 for various traffic and sidewalk projects, $60,000 for the energy power backup project, $40,000 for the electric door phase 2 project, $64,500 for the JPCC wood floor upgrade, and 145,000 for various business process improvement projects. 51 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 NOTE 4 - CAPITAL ASSETS Capital assets activity for the year ended June 30, 2013, consisted of the following: Depreciation expense, including the amount related to the internal service funds, was charged in the following functions in the Statement of Activities: General Government $ 1,299,379 Primary Government 598,972 Community Services 18,616 Balance - Internal Service Funds 49,715 Balance $ 1,966,682 July 1, 2012 Additions Retirements Reclassifications June 30, 2013 Governmental activities: Capital assets, not being depreciated: Land and land improvements $ 14,510,401 $ - $ - $ 75,000 $ 14,585,401 Construction in progress 7,166,953 2,612,974 (53,938) (2,110,325) 7,615,664 Infrastructure: Street pavement system 49,155,619 - - - 49,155,619 Total capital assets, not being depreciated 70,832,973 2,612,974 (53,938) (2,035,325) 71,356,684 Capital assets, being depreciated: Buildings and structures 23,611,590 - - 1,868,560 25,480,150 Machinery and equipment Governmental funds 1,698,723 19,705 (108,992) 68,887 1,678,323 Internal service funds 724,059 84,538 (16,594) - 792,003 Infrastructure: Bridges 1,563,654 - - - 1,563,654 Signs and lights 1,820,585 - 14,558 1,835,143 Drainage system 40,060,953 - 39,100 40,100,053 Sidewalks 12,328,102 - 44,220 12,372,322 Total capital assets, being depreciated 81,807,666 104,243 (125,586) 2,035,325 83,821,648 Accumulated depreciation: Buildings and structures (6,641,759) (634,807) - - (7,276,566) Machinery and equipment Governmental funds (1,160,737) (64,262) 108,992 - (1,116,007) Internal service funds (657,910) (49,715) 16,594 - (691,031) Infrastructure: Bridges (1,027,104) (25,717) - - (1,052,821) Signs and lights (926,699) (64,952) - (991,651) Drainage system (13,929,761) (801,610) - - (14,731,371) Sidewalks (5,099,993) (325,619) - - (5,425,612) Total accumulated depreciation (29,443,963) (1,966,682) 125,586 - (31,285,059) Total capital assets, being depreciated, net 52,363,703 (1,862,439) - 2,035,325 52,536,589 Governmental activities capital assets, net $ 123,196,676 $ 750,535 $ (53,938) $ - $ 123,893,273 Depreciation expense, including the amount related to the internal service funds, was charged in the following functions in the Statement of Activities: General Government $ 1,299,379 Public Works 598,972 Community Services 18,616 Community Development - Internal Service Funds 49,715 Total Depreciation Expense $ 1,966,682 52 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government -Wide Statement of Net Position. The City elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its pavement system. As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A more detailed discussion of the "Modified Approach" is presented in the Required Supplementary Information section of this report. All other capital assets including other infrastructure systems were reported using the Basic Approach whereby accumulated depreciation and depreciation expense have been recorded. NOTE 5 — LONG -TERM OBLIGATIONS A summary of the City's long -term obligations transactions for the year ended June 30, 2013, is presented below: Classification General Obligation 2012 Library Bonds - Original Issue $11,995,000 On July 14, 2012, the City issued General Obligation Bonds Series 2012 in the amount of $11,995,000. The bonds were issued to fully refund the General Obligation 2001 Library Bonds. The bonds are payable from and secured by certain property taxes within the City. Interest on the bonds ranges from 2.0 percent to 4.0 percent and is payable on February 1 and August 1 of each year, commencing February 1, 2013. Principal is due annually beginning on August 1, 2013, in amounts ranging from $455,000 to $760,000, with a final payment on August 1, 2031 of $1,610,000. The bonds maturing on or before August 1, 2021 are not subject to redemption prior to their respective stated maturity dates. Bonds maturing on or after August 1, 2022 are subject to redemption prior to their respective stated maturity dates at the option of the city at the principal amount of the bonds called for redemption, together with interest accrued thereon to the date of redemption, without premium. The annual debt service requirements on these bonds are as follows: Year Ended Balance Interest Balance Due Within Due In More Description July 1, 2012 Additions Retirements June 30, 2013 One Year Than One Year General Obligation Bonds: 500,000 383,335 883,335 2017 475,000 2011 Library bonds $ 11,995,000 $ $ (455,000) $ 11,540,000 $ 485,000 $ 11,055,000 Net original issue premium 437,846 (21,892) 415,954 21,892 394,062 Compensated absences 646,213 403,682 (428,216) 621,679 440,749 180,930 Total $ 13,079,059 $ 403,682 $ (905,108) $ 12,577,633 $ 947,641 $ 11,629,992 General Obligation 2012 Library Bonds - Original Issue $11,995,000 On July 14, 2012, the City issued General Obligation Bonds Series 2012 in the amount of $11,995,000. The bonds were issued to fully refund the General Obligation 2001 Library Bonds. The bonds are payable from and secured by certain property taxes within the City. Interest on the bonds ranges from 2.0 percent to 4.0 percent and is payable on February 1 and August 1 of each year, commencing February 1, 2013. Principal is due annually beginning on August 1, 2013, in amounts ranging from $455,000 to $760,000, with a final payment on August 1, 2031 of $1,610,000. The bonds maturing on or before August 1, 2021 are not subject to redemption prior to their respective stated maturity dates. Bonds maturing on or after August 1, 2022 are subject to redemption prior to their respective stated maturity dates at the option of the city at the principal amount of the bonds called for redemption, together with interest accrued thereon to the date of redemption, without premium. The annual debt service requirements on these bonds are as follows: Year Ended Principal Interest Total 2014 $ 485,000 $ 403,085 $ 888,085 2015 495,000 393,285 888,285 2016 500,000 383,335 883,335 2017 475,000 371,210 846,210 2018 485,000 356,811 841,811 2019 -2023 2,715,000 1,492,650 4,207,650 2024 -2028 3,285,000 928,608 4,213,608 2029 -2032 3,100,000 254,000 3,354,000 Total $ 11,540,000 $ 4,582,984 $ 16,122,984 53 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 Compensated Absences The City's liability for vested and unpaid compensated absences (accrued vacation and sick pay) has been accrued and amounts to $621,679 at June 30, 2013. The compensated absences liability will generally be liquidated through the General Fund. NOTE 6 - RISK MANAGEMENT The City participates in the two following public entity risk pools: ABAG Plan Corporation (ABAG PLAN) - covers general liability claims up to a limit of $5 million and purchases an additional $15 million of excess insurance coverage, for a total of $20 million per occurrence limit. The City has a deductible or uninsured liability of up to $25,000 per claim. Once the City's deductible is met, ABAG PLAN becomes responsible for payment of all claims up to the limit. During the fiscal year ended June 30, 2013, the City contributed $214,130 for current year coverage and received no refund of prior year excess contributions. ABAG Workers' Compensation Pool Insurance Authority (ABAG POOL) — covers workers' compensation coverage up to $250,000 and excess coverage provides an employer liability limit of $5 million per occurrence, and workers' compensation per occurrence limit to $100 million. The City has no deductible for these claims. During the fiscal year ended June 30, 2013, the City contributed $153,620 for current year coverage. The City's contribution equals the ratio of the City's payroll to the total payrolls of all entities participating in the same layer of each program, in each program year. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. There have been no significant reductions of insurance settlements that exceeded insurance coverage for the past three years. The workers' compensation and general liability claims payable of $24,800 reported at June 30, 2013, are based on the requirements of GASB Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the basic financial statements indicates that it is probable that a liability has incurred at the date of the basic financial statements and the amount of the loss can be reasonably estimated. Changes in the claims payable amounts were as follows: The General Fund has been used in the prior years to liquidate the liability for claims and judgments. Claims payable, beginning of year Fiscal year claims and changes in estimates Claims payments Claims payable, end of year Year Ended Year Ended June 30, 2013 June 30, 2012 $ 21,247 $ 14,091 24,800 21,247 (21,247) (14,091) $ 24,800 $ 21,247 Each risk pool is governed by a board consisting of representatives from member municipalities. The board controls the operations of each risk pool, including selection of management and approval of 54 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 operating budgets, independent of any influence by member municipalities beyond their representation on the Board. The following represents summary audited financial information of ABAG Plan Corporation and the ABAG Workers' Compensation Pool Insurance Authority for the fiscal year ended June 30, 2012 (most recent available): Total Assets Total Liabilities Net Assets Total Revenues Total Expenses Net Increase in Net Assets Plan Corporation $ 45,141,862 24,677,330 $ 20,464,532 $ 9,110,482 15.179.160 Comp Shared Risk Pool — $ 3,978,862 791,665 $ 3,187,197 $ 557,954 471.897 $ (6,068,678) $ 86,057 Audited financial information for each risk pool may be obtained from ABAG at P.O. Box 2089, Oakland, California 94604 -2089. NOTE 7 - RETIREMENT PLANS Pension Plan Plan Description - The City contributes to the California Public Employees' Retirement System (Ca1PERS), a cost - sharing multiple- employer defined benefit plan. CAPERS provide retirement and disability benefits, annual cost -of- living adjustments, and death benefits to plan members and beneficiaries. CalPERS act as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of CAPERS' annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95811. Funding Policy – The City employer is required to contribute an actuarially determined rate of annual covered payroll for its miscellaneous employees (13.031 percent until February 2013 and 11.040 percent for the remainder of fiscal year 2012/13). Active plan members are required by State statute to contribute 7 percent of their annual covered salary. In past years, the City employer contributed this required amount on behalf of City employees. As a result of labor negotiations during fiscal year 2011/12, employees began to contribute the 7 percent of annual salary. Annual Pension Cost - For fiscal year 2012/13, the City's annual pension cost was $603,323. The required contribution was determined as part of the June 30, 2009, actuarial valuation using the entry age normal actuarial cost method. Ca1PERS actuarial assumptions included (a) 7.75 percent (7.75 %) investment rate of return (net of administrative expenses), (b) projected annual salary increases ranging from 3.55 percent to 14.45 percent for miscellaneous employees depending on age, service, and type of employment, and (c) 3.25 percent per year payroll growth adjustments. Both (a) and (b) included an inflation component of 3.00 percent. The actuarial value of Ca1PERS assets was determined using 55 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 techniques that smooth the effects of short-term volatility in the market value of investments over a three - year period. Ca1PERS' unfunded actuarial accrued liability (or surplus) is amortized as a level percentage of projected payroll on a closed basis. The amortization period at June 30, 2008, was 30 years for miscellaneous employees for prior and current service unfunded liability. THREE -YEAR ANNUAL PENSION COSTS TREND INFORMATION FOR CALPERS Required Supplementary Information In 2004, Ca1PERS established a risk pool for cities and other government entities that have less than 100 active members. Actuarial valuations are performed with other participants within the same risk pool. Stand alone information of the Schedule of the Funding Progress for the City is no longer available. Q111M.110 0 01 901MMIXI A. Net Investment in Capital Assets As of June 30, 2013, the net investment in capital assets consisted of the following: Capital assets, net $ 123,893,273 2011 general obligation library bonds (11,540,000) Net investment in capital assets $ 112,353,273 B. Restricted Net Position As of June 30, 2013, the restricted net position consisted of the following: Restricted For Environmental Special Debt Services Assessments Service Total Restricted Net Position $ 463,182 $ 621,948 $ 885,757 $ 1,970,887 NOTE 9 - JOINT POWERS AGREEMENTS The City is a member of several Joint Power Agreements, as follows: The Santa Clara County Valley Transportation Authority (VTA) consists of various cities in the San Francisco Bay area. The Transportation Authority was formed in 1985, by a joint exercise of powers agreement between the County of Santa Clara and the cities of Santa Clara County for the purpose of financing highway capital improvements within the County to serve transportation needs. Financial 56 Annual Net Fiscal Pension Cost APC Pension Year (APC) Contributed Obligation 2011 $ 579,256 100% $ - 2012 616,323 100% $ - 2013 603,323 100% $ - Required Supplementary Information In 2004, Ca1PERS established a risk pool for cities and other government entities that have less than 100 active members. Actuarial valuations are performed with other participants within the same risk pool. Stand alone information of the Schedule of the Funding Progress for the City is no longer available. Q111M.110 0 01 901MMIXI A. Net Investment in Capital Assets As of June 30, 2013, the net investment in capital assets consisted of the following: Capital assets, net $ 123,893,273 2011 general obligation library bonds (11,540,000) Net investment in capital assets $ 112,353,273 B. Restricted Net Position As of June 30, 2013, the restricted net position consisted of the following: Restricted For Environmental Special Debt Services Assessments Service Total Restricted Net Position $ 463,182 $ 621,948 $ 885,757 $ 1,970,887 NOTE 9 - JOINT POWERS AGREEMENTS The City is a member of several Joint Power Agreements, as follows: The Santa Clara County Valley Transportation Authority (VTA) consists of various cities in the San Francisco Bay area. The Transportation Authority was formed in 1985, by a joint exercise of powers agreement between the County of Santa Clara and the cities of Santa Clara County for the purpose of financing highway capital improvements within the County to serve transportation needs. Financial 56 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 statements may be obtained from the Traffic Authority at 1754 Technology Drive, Suite 224, San Jose, California 95110. The West Valley Solid Waste Management Joint Powers Authority consists of the west valley cities of Campbell, Los Gatos, Monte Sereno, and Saratoga. The JPA was formed to coordinate efforts in carrying out solid waste collection and disposal activities, and in meeting the mandates of AB939, the States' Integrated Waste Management Act. The Silicon Valley Regional Interoperability Authority (SVRIA) consists of Silicon Valley agencies formed to coordinate the design and implementation of an interoperable public safety communication system. The Santa Clara County Library System JPA consists of various member agencies as a policy making and governing body of the County's library system. These JPA's are governed by boards consisting of representatives from their members. The boards control the operations of each JPA, including selection of management and approval of operating budgets, independent of any influence by its members beyond their representation on the board. NOTE 10 - EXCESS EXPENDITURES OVER APPROPRIATIONS There were no excess of expenditures over appropriations in individual funds during fiscal year 2012/13. NOTE 11- COMMITMENTS AND CONTINGENCIES A. Lawsuits The City is presently involved in certain matters of litigation that have arisen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize. B. Federal and State Grant Programs The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act Amendments of 1996 and applicable State requirements. For Federal programs, the City reached the level of qualifying cost during the current fiscal year so a single audit was required. Expenditures which may be disallowed, if any, by the granting agencies, cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 57 CITY OF SARATOGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2013 C. Commitments The City had several outstanding contracts or planned construction projects as of June 30, 2013. These projects are evidenced by contractual commitments with contractors and include: Vendor Original Commitment Commitment Remaining Amland Corp $ 33,189 $ 24,400 Biggs Cardosa Association 4,200 3,570 BKF Engineers 64,834 34,694 Chrisp Company 36,460 2,988 Cotton Shires & Associates 80,887 12,647 David L. Gates & Associates 25,279 13,363 Fehr Engineering Company 10,500 2,000 Gachina Landscape 17,940 17,940 Gradetech, Inc. 975,690 252,638 Guerra Construction Group 232,346 173,788 Hillside Drilling, Inc. 252,033 252,033 Labor Consultants 15,625 4,075 Lundmark Construction 19,490 7,620 Pacific Products & Services 9,000 9,000 Peelle, Technologies, Inc. 117,749 107,084 Reed & Graham, Inc. 33,000 33,000 Solectric Electrical 13,000 1,787 Steve Benzing Architect 4,820 1,108 Tennyson Electric 159,929 20,289 Testing Engineers 13,529 8,786 The Planning Center 249,631 236,945 $ 2,369,131 $ 1,219,754 As of June 30, 2013, in the opinion of City management, there were no additional outstanding matters that would have a significant effect on the financial position of the funds of the City. 58 J SARq q 1 1h, Q 1F0 REQUIRED SUPPLEMENTARY INFORMATION 213 This page is intentionally blank 214 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2013 NOTE 1- BUDGETARY INFORMATION The following is the budget comparison schedules for General Fund. REVENUES: Property taxes Special assessments Sales taxes Other local takes Licenses & permits Fines & forfeitures Intergovermental - state Intergovenmental - other Franchise fees Use of money &property Other revenue Total revenues EXPENDITURES: Current: General and intergovernmental services Public safety Public works Community services Community development services Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCINGS OURCES (USES): Transfers in Transfers out Total other financing sources (uses) Net change in fund balances FUND BALANCES: Beginning of year End of year Budgeted Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) $ 8,186,642 $ 8,436,600 $ 8,959,231 $ 522,631 5,375 5,375 7,165 1,790 1,095,000 1,035,000 1,051,121 16,121 580,000 630,000 769,357 139,357 1,050,065 1,315,065 1,543,277 228,212 251,025 251,025 180,557 (70,468) 340,863 340,863 364,488 23,625 33,000 33,000 51,999 18,999 1,819,500 1,819,500 1,919,750 100,250 536,282 516,282 492,366 (23,916) 1,924,105 2,310,899 2,296,677 (14,222) 15,821,857 16,693,609 17,635,988 942,379 3,483,445 3,718,846 3,268,524 450,322 4,400,463 4,400,463 4,391,844 8,619 4,482,355 4,563,265 4,542,221 21,044 1,396,144 1,396,144 1,318,493 77,651 2,040,641 2,090,641 2,046,853 43,788 15,803,048 16,169,359 15,567,935 601,424 18,809 524,250 2,068,053 1,543,803 106,000 106,000 106,000 - (735,000) (1,184,500) (1,184,500) - (629,000) (1,078,500) (1,078,500) - $ (610,191) $ (554,250) 989,553 $ 1,543,803 59 8,929,121 $ 9,918,674 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2013 Through the budget, the City Council sets the direction of the City, allocates its resources and establishes its priorities. The Annual Operating and Capital Budgets assure the efficient and effective uses of the City's economic resources, as well as establishing that the highest priority objectives are accomplished. The annual budgets are adopted for the period of July 1 to June 30, and prepared to accurately and openly communicate service and infrastructure priorities to the community, businesses, vendors, employees, and other public agencies. The Annual Operating Budget is developed on a program basis for all funds with fund level authority. It establishes the foundation of effective financial planning by providing resource planning, performance measures and controls that permit the evaluation and adjustment of the City's performance. The City adopts an annual budget for the capital projects as part of adopting the five -year Capital Improvement Plan. The annual capital budget is adopted on a project -by- project basis. The City follows these procedures in establishing the budgetary data reflected in the basic financial statements: a. The City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating and capital budgets include proposed expenditures and the means of financing them. b. Public hearings are conducted to obtain taxpayer comments. c. The budgets are legally enacted through the passage of a resolution. d. For the Operating Budget, the City Manager may authorize transfers of budget amounts within a fund. However, any revisions that increase the total budgeted expenditures of any fund must be approved by the City Council. Expenditures may not legally exceed budgeted appropriations at the fund level without City Council approval. e. As Capital Projects are adopted on a project basis, the City Council must approve increases or decreases of budgeted amounts or changes in project scope. Upon project completion, immaterial amounts are transferred to ongoing maintenance projects within the capital program. If remaining project funds are material, the project balance is brought back to Council for approval to transfer. £ Formal budgetary integration in the form of legally adopted budgets is employed as a management control device for all funds. Budgets are adopted on a basis consistent with generally accepted accounting principles. Budgeted expenditures reported are as amended by supplemental appropriations of the City Council. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General, Special Revenue, Internal Service, and Capital funds. Unexpended and unencumbered appropriations automatically lapse at the end of the fiscal year. .1 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2013 NOTE 2 - MODIFIED APPROACH FOR CITY STREETS INFRASTRUCTURE CAPITAL ASSETS In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure capital assets. The City defines infrastructure as the basic physical assets that allow the City to function and those resources utilized primarily by the public which provide future economic benefits for a minimum of two years. Infrastructure can be defined as assets that are immovable and of value only to the government. Major infrastructure includes the street system, park and recreation lands and improvements; storm water conveyance and drainage systems, and buildings combined with site amenities such as parking and landscaping areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be divided into concrete and asphalt pavements, concrete curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems. The City has elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its Streets Pavement System. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements: • The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up -to -date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established condition assessment level. The City documents that the eligible infrastructure capital assets are being preserved approximately at or above the established and disclosed condition assessment level. The City commissioned a physical assessment of the streets conditions with the final report received March 30, 2012. The study assists the City by providing current inspection data used to evaluate current pavement condition. This helps to maintain a City - defined desirable level of pavement performance while optimizing the expenditure of limited fiscal resources. The entire pavement network within the City is composed of approximately 140 centerline miles of paved surfaces. The City's road system can be grouped by function class and includes 23.4 centerline miles of arterial, 23.5 centerline miles of collector, and 93.3 miles as residential. A visual survey of all pavement segments was conducted to assess the existing surface condition of each of the individual pavement segments. Upon completion of the study, a Pavement Condition Index (PCI) was calculated for each segment in the City's pavement network to reflect the overall pavement condition. Rating between 0 and 100, a PCI of 0 would correspond to a badly deteriorated pavement with virtually no remaining life. A PCI of 100 would correspond to a pavement with proper engineering design and construction at the beginning of its life cycle. The assessment study was conducted during November, 2010. 61 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2013 The following conditions were defined: Condition Rating Excellent 80-100 Very Good 70-79 Good 50-69 Poor 25-49 Very Poor 0-24 The City's policy is to achieve an average rating of 70 for all streets, which is a very good rating. This rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. As of June 30, 2013, the City's street system was rated at a PCI index of 76 on the average with the detail condition as follows: Percent of Condition Streets Excellent 8% Very Good 75% Good 14% Poor 3% Very Poor 0% The City expended $2,417,444 on street maintenance for the year ended June 30, 2013. These routine maintenance expenditures delayed deterioration. The budget required to maintain and improve the current level of overall condition through the year 2017 is a minimum of $1,000,000. Approximately $8,200,000 is the projected budget for fiscal year 2013/14. A schedule of estimated annual amount calculated to maintain and preserve its streets at the current level compared to actual expenditures for street maintenance for the last ten years is presented below: Fiscal Actual Year Budget Expenditures 2003 -04 $ 1,961,844 $ 1,489,667 2004 -05 1,800,000 2,609,648 2005 -06 1,156,547 1,030,382 2006 -07 2,026,404 1,156,889 2007 -08 2,246,152 1,691,466 2008 -09 2,680,504 1,574,485 2009 -10 1,811,130 771,386 2010 -11 4,770,782 1,847,221 2011 -12 4,683,078 2,856,603 2012 -13 4,826,265 2,417,444 Funded By Other Gas Tax Total PCI Sources Fund Funded Index $ 907,327 $ 582,340 $ 1,489,667 - 1,478,216 1,131,432 2,609,648 70 353,652 676,730 1,030,382 70 19,899 970,818 990,717 70 1,252,709 438,757 1,691,466 70 1,148,650 425,835 1,574,485 70 575,710 195,676 771,386 70 1,449,686 397,535 1,847,221 76 1,622,401 1,234,202 2,856,603 76 1,660,028 757,416 2,417,444 76 As of June 2013, approximately 17 percent of the City's streets were rated below the average standard of 70. The City will continue to rehabilitate these segments of the streets. Total deficiencies (deferred maintenance) identified in the Pavement Management System Report at the end of a five -year period 62 CITY OF SARATOGA REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2013 (2013 -2017) amounted to approximately $11,000,000 for all streets and are expected to be rehabilitated with a minimum annual budget of $1,000,000. Rv This page is intentionally blank. 64 SARq eJ 1956 �IFQRN SUPPLEMENTARY INFORMATION This page is intentionally blank NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds Lighting and Landscape Assessment District Funds — These funds account for revenues and expenditures associated with maintaining the City's 25 Landscape and Lighting districts which were approved by consent of property owners living along or within the boundaries of the Districts. Debt Service Fund Library Bond - Santa Clara County general obligation bond tax revenues are accumulated in this fund to pay annual principal and interest payments on the voter approved 2001 Library Improvement Bond. 65 CITY OF SARATOGA COMBINING BALANCE SHEETS NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 AS S El'S Cash and investments Receivables: Accounts Interest Total assets LIABILITIES AND FOND BALANCES Liabilities: Accounts payable Total liabilities Fund Balances : Restricted: Special revenue funds Debt service Total fund balances Total liabilities and fund balances Special Revenue Debt Service Lighting and Total Landscaping Other Assessment Library Governmental $ 642,339 $ 885,177 $ 1,527,516 192 200 392 $ 20,925 $ - $ 20,925 20,925 - 20,925 621,948 - 621,948 - 885,757 885,757 621,948 885,757 1,507,705 $ 642,873 $ 885,757 $ 1,528,630 66 CITY OF SARATOGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2013 REVENUES: Property taxes Special assessment Use of money and property Total revenues EXPENDITURES: Current: General and ingov't services Public works Debt service: Principal Interest and fiscal charges Total expenditures REVENUES OVER (UNDER) EXPENDITURES Net change in fund balances FUND BALANCES: Beginning of year End of year Special Debt Revenue Service Lighting and Total Landscaping Other Assessment Library Governmental District Bond Funds $ 193,634 $ - $ 193,634 287,489 890,401 1,177,890 1,965 1,851 3,816 483,088 892,252 1,375,340 423,644 423,644 - 455,000 455,000 413,910 413,910 423,644 868,910 1,292,554 59,444 23,342 82,786 59,444 23,342 82,786 562,504 862,415 1,424,919 $ 621,948 $ 885,757 $ 1,507,705 67 CITY OF SARATOGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CAPITAL IMPROVEMENT FOR THE YEAR ENDED JUNE 30, 2013 M. Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Licenses &pemuts $ 425,000 $ 425,000 $ 633,197 $ 208,197 Fines & forfeitures - - 18,462 18,462 Intergovermental - federal 3,934,428 4,096,962 974,826 (3,122,136) Intergovermental - state 1,018,662 853,315 777,704 (75,611) Intergovermental - other 390,088 390,088 217,401 (172,687) Use of money and property 35,000 35,000 31,130 (3,870) Other revenue 323,212 401,406 124,181 (277,225) Total revenues 6,126,390 6,201,771 2,776,901 (3,424,870) EXPENDITURES: Capital outlay 10,264,595 10,789,477 3,979,272 6,810,205 Total expenditures 10,264,595 10,789,477 3,979,272 6,810,205 REVENUES OVER (UNDER) EXPENDITURES (4,138,205) (4,587,706) (1,202,371) 3,385,335 OTHER FINANCINGS OURCES (USES): Transfers in 735,000 1,184,500 1,184,500 - Transfers out (106,000) (106,000) (106,000) - Total other financing sources (uses) 629,000 1,078,500 1,078,500 - Net change in fund balances $ (3,509,205) $ (3,509,206) (123,871) $ 3,385,335 FUND BALANCES: Beginning of year 3,544,205 End of year $ 3,420,334 M. CITY OF SARATOGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL LIGHTING & LANDSCAPING ASSESSMENT DISTRICT SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 69 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Property taxes $ 172,550 $ 172,550 $ 193,634 $ 21,084 Special assessments 290,539 290,539 287,489 (3,050) Use of money and property 1,645 1,645 1,965 320 Total revenues 464,734 464,734 483,088 18,354 EXPEIVDrI'URES : Current: Public works 633,929 633,929 423,644 210,285 Total expenditures 633,929 633,929 423,644 210,285 REVENUES OVER (UNDER) EXPENDITURES (169,195) (169,195) 59,444 228,639 Net change in fund balances $ (169,195) $ (169,195) 59,444 $ 228,639 FUND BALANCES: Beginning of year 562,504 End of year $ 621,948 69 CITY OF SARATOGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL LIBRARY BOND DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30, 2013 70 Variance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) REVENUES: Special assessments $ 850,000 $ 850,000 $ 890,401 $ 40,401 Use of money and property 600 600 1,851 1,251 Total revenues 850,600 850,600 892,252 41,652 EXPENDITURES: Debt service: General and ingov't services - - - - Principal 455,000 455,000 455,000 - hiterest and fiscal charges 414,285 414,285 413,910 375 Total expenditures 869,285 869,285 868,910 375 REVENUES OVER (UNDER) EXPENDITURES (18,685) (18,685) 23,342 42,027 Net change in fund balances $ (18,685) $ (18,685) 23,342 $ 42,027 FUND BALANCES: Beginning of year 862,415 End of year $ 885,757 70 INTERNAL SERVICE FUNDS Liability /Risk Management Insurance Fund — Accounts for insurance premiums, self - insurance portion of claims, and administrative cost associated with settling claims. Charges made to operating departments are based on liability risk and claim occurrence history. Worker's Compensation Self - insurance Fund — Accounts for insurance premiums, self insured portion of claims, and administrative costs associated with settling claims. Charges made to operating departments are based on liability risk and claim occurrence history. Office Stores Fund - Photocopy equipment, postage and bulk mail meter expenses are controlled at one source point and expended to the departments as goods or services are utilized. Information Technology Services Fund — Supports the delivery of technology based services and infrastructure, including desktop support, network systems, technology upgrades and initiatives, community systems, and associated information technology equipment. Vehicle & Equipment Maintenance Fund — Accounts for the cost of operating and maintaining automotive equipment used for service operations in various City departments. Building Maintenance Fund — Accounts for operating costs associated with building maintenance. Expenses include custodial supplies and services, maintenance and repair, utilities, and staffing costs. Vehicle & Equipment Replacement Fund — Established to accumulate funding for the replacement of vehicles and equipment. Replacement costs are charged to program over the asset's life span, reflective of usage. Information Technology Equipment Replacement Fund — Established to accumulate funding for the replacement of information technology equipment. Replacement costs are charged to departments over the asset's lifespan, reflective of usage. 71 CITY OF SARATOGA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF NET POSITION JUNE 30, 2013 ASSETS Current assets: Cash and investments Accounts receivable Total current assets Noncurrent assets: Capital assets: Machinery and equipment Less: accumulated depreciation Total capital assets (net of accumulated depreciation) Total assets LIABILITIES Liabilities: Current assets: Accounts payable Accrued payroll Claims payable Total current liabilities NET POSITION Net investment in capital assets Unrestricted Total net position Liability / Risk Workers' Office Management Compensation Stores $ 250,245 $ 296,293 $ 29,227 5,667 - 27 255,912 296,293 29,254 IZ �yo,�y� L7,2 D,+ - 2,214 5,234 1,053 359 - 24,800 - - 25,853 2,573 5,234 230,059 293,720 24,020 $ 230,059 $ 293,720 $ 24,020 72 6,238 3,356 36,772 - 12,051 Information 4,208 Information Vehicle - - Vehicle Technology - Technology and Equipment Building and Equipment Equipment 43,593 Services Maintenance Maintenance Replacement Replacement Total 100,972 281,285 10,427 184,901 442,089 156,317 1,622, 818 $ 291,578 $ 15,046 $ 223,831 $ 442,089 $ 168,368 $ 1,716,677 153 - 4,663 - - 10,510 291,731 15,046 228,494 442,089 168,368 1,727,187 - - - 701,763 90,240 792,003 - - - (600,791) (90,240) (691,031) - - - 100,972 - 100,972 291,731 15,046 228,494 543,061 168,368 1,828,159 6,238 3,356 36,772 - 12,051 65,865 4,208 1,263 6,821 - - 13,704 - - - - - 24,800 10,446 4,619 43,593 - 12,051 104,369 - - - 100,972 - 100,972 281,285 10,427 184,901 442,089 156,317 1,622, 818 $ 281,285 $ 10,427 $ 184,901 $ 543,061 $ 156,317 $ 1,723,790 73 CITY OF SARATOGA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION FOR THE YEAR ENDED JUNE 30, 2013 Operating revenues: Charges for services Other operating revenues Total operating revenues Operating expenses: Cost of services Administration Depreciation Total operating expenses Operating income Change in net position Total net position - beginning Total net position - ending Liability / Risk Workers' Office Management Compensation Stores $ 375,000 $ 240,000 $ 55,000 28,398 4,454 12,085 403,398 244,454 67,085 308,096 182,700 54,285 308,096 182,700 54,285 95,302 61,754 12,800 95,302 61,754 12,800 134,757 231,966 11,220 $ 230,059 $ 293,720 $ 24,020 74 75 Infon-nation Information Vehicle Vehicle Technology Technology and Equipment Building and Equipment Equipment Services Maintenance Maintenance Replacement Replacement Total $ 400,000 $ 215,000 $ 750,000 $ 100,000 $ 46,236 $ 2,181,236 258 - 5,857 - - 51,052 400,258 215,000 755,857 100,000 46,236 2,232,288 - 227,604 771,882 10,462 46,678 1,056,626 375,674 - - - - 920,755 - - - 49,715 - 49,715 375,674 227,604 771,882 60,177 46,678 2,027,096 24,584 (12,604) (16,025) 39,823 (442) 205,192 24,584 (12,604) (16,025) 39,823 (442) 205,192 256,701 23,031 200,926 503,238 156,759 1,518,598 $ 281,285 $ 10,427 $ 184,901 $ 543,061 $ 156,317 $ 1,723,790 75 CITY OF SARATOGA INTERNAL SERVICE FUNDS COMBINING STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2013 Cash flows from operating activities: Receipts from customers and users Payments to suppliers Payments to employees Net cash provided by operating activities Cash flows from capital activities: Acquisition of capital assets Net cash used for acquisition of capital assets Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, ending of year Reconciliation of operating income to net cash provided by operating activities: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Change in operating assets andliabilities: Accounts receivables Accounts payable Claims payable Accured payroll Net cash provided (used) by operating activities 76 Liability / Risk Workers' Office Management Compensation Stores $ 428,205 $ 244,454 $ 67,058 (245,965) (160,494) (52,682) (58,604) (20,247) - 123,636 63,713 14,376 1GJ,OJO OJ, /1J 14,J/O 126,609 232,580 14,851 $ 250,245 $ 296,293 $ 29,227 $ 95,302 $ 61,754 $ 12,800 24,807 - (27) (286) 1,769 1,603 3,553 - - $ 24,584 $ (12,604) $ (16,025) $ 39,823 $ (442) $ 205,192 - - - 49,715 - 49,715 (153) - (4,663) - - 19,964 (1,569) (6,039) 2,101 - 8,498 6,077 - - - - - 3,553 114 11 (360) - - 215 $ 22,976 $ (18,632) $ (18,947) $ 89,538 $ 8,056 $ 284,716 77 Information Information Vehicle Vehicle Technology Technology and Equipment Building and Equipment Equipment Services Maintenance Maintenance Replacement Replacement Total $ 400,105 $ 215,000 $ 751,194 $ 100,000 $ 46,236 $ 2,252,252 (175,865) (156,714) (319,404) (10,462) (38,180) (1,159,766) (201,264) (76,918) (450,737) - - (807,770) 22,976 (18,632) (18,947) 89,538 8,056 284,716 - - - (84,538) - (84,538) - - - (84,538) - (84,538) 22,976 (18,632) (18,947) 5,000 8,056 200,178 268,602 33,678 242,778 437,089 160,312 1,516,499 $ 291,578 $ 15,046 $ 223,831 $ 442,089 $ 168,368 $ 1,716,677 $ 24,584 $ (12,604) $ (16,025) $ 39,823 $ (442) $ 205,192 - - - 49,715 - 49,715 (153) - (4,663) - - 19,964 (1,569) (6,039) 2,101 - 8,498 6,077 - - - - - 3,553 114 11 (360) - - 215 $ 22,976 $ (18,632) $ (18,947) $ 89,538 $ 8,056 $ 284,716 77 This page is intentionally blank 78 CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 79 This page is intentionally blank 80 CITY OF SARATOGA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS COMPARATIVE SCHEDULE BY SOURCE JUNE 30, 2013 AND 2012 1 This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service funds are excluded fromthe above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position. al 2013 2012 Governmental Funds Capital Assets: Land and land improvements $ 14,585,401 $ 14,510,401 Buildings and structures 25,480,150 23,611,590 Machinery and equipment 1,678,323 1,698,723 Infrastructure 105,026,791 104,928,913 Construction in progress 7,615,664 7,166,953 Total Governmental Funds Capital Assets 154,386,329 151,916,580 Accumulated depreciation (30,594,028) (28,786,053) Total Governmental Funds Capital Assets, Net $ 123,792,301 $ 123,130,527 Investments in Governmental Funds Capital Assets by Source: General Fund $ 115,331,263 $ 115,440,255 Special revenue funds 960,972 960,972 Capital projects funds 37,246,746 34,668,005 Donations 847,348 847,348 Accumulated depreciation (30,594,028) (28,786,053) Total Governmental Funds Capital Assets $ 123,792,301 $ 123,130,527 1 This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service funds are excluded fromthe above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position. al CITY OF SARATOGA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE BY FUNCTION AND ACTIVITY' JUNE 30, 2013 Function and Activity General and intergovernmental services: Management services Administrative services Intergovernmental services Total General and Intergovernmental Services: Public safety: Police services Code enforcement Total Public Safety: Public works: Streets and sidewalks Parks /open space Total Public Works: Community services Community development services Total Governmental Funds Capital Assets Accumulated depreciation Total Governmental Funds Capital Assets, Net Land Buildings and Land and Improvements Structures $ - $ 564,632 521,073 118,184 3,138,641 118,184 4,224,346 835,154 62,921 3,712,061 2,679,107 4,547,215 2,742,028 8,177,538 4,198,877 1,742,464 14,314,899 14,585,401 25,480,150 (7,276,566) $ 14,585,401 $ 18,203,584 This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service funds are excluded form the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position. 82 Machinery Construction and in Equipment Infrastructure Progress Total $ 553,507 $ - $ 355,105 $ 1,473,244 140,332 - - 661,405 22,225 - - 3,279,050 716,064 - 355,105 5,413,699 29,459 - - 29,459 7,548 - - 7,548 37,007 - - 37,007 421,125 104,899,554 4,869,501 111,088,255 150,019 - 45,326 6,586,513 571,144 104,899,554 4,914,827 117,674,768 337,476 127,237 2,296,494 15,137,622 16,632 - 49,238 16,123,233 1,678,323 105,026,791 7,615,664 154,386,329 (1,116,007) (22,201,455) - (30,594,028) $ 562,316 $ 82,825,336 $ 7,615,664 $ 123,792,301 83 CITY OF SARATOGA CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS SCHEDULE OF CHANGE BY FUNCTION AND ACTIVITY JUNE 30, 2013 Function and Activity General and intergovernmental services: Management services Administrative services Intergovernmental services Total General and Intergovernmental Services Public safety: Police services Code enforcement Total Public Safety: Public works: Streets and sidewalks Parks /open space Total Public Works: Community services Community development services Total Governmental Funds Capital Assets Accumulated depreciation Total Governmental Funds Capital Assets, Net Governmental Funds Capital Assets July 1, 2012 Additions Governmental Funds Capital Assets Deletions June 30, 2013 $ 1,335,133 $ 138,111 $ - $ 1,473,244 307,917 353,488 - 661,405 3,279,050 - - 3,279,050 4,922,100 491,599 - 5,413,699 29,459 - - 29,459 7,548 - - 7,548 37,007 - - 37,007 109,483,820 1,640,580 (36,145) 111,088,255 6,646,344 12,746 (72,577) 6,586,513 116,130,164 1,653,326 (108,722) 117,674,768 14,706,057 431,565 - 15,137,622 16,121,251 1,982 - 16,123,233 151,916,579 2,578,472 (108,722) 154,386,329 (28,786,052) (1,916,748) 108,772 (30,594,028) $ 123,130,527 $ 661,724 $ 50 $ 123,792,301 1 This schedule presents only the capital asset balances related to governmental funds. Accordingly the capital assets reported in internal service funds are excluded form the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net position. 84 STATISTICAL SECTION 243 This page is intentionally blank This part of the City of Saratoga's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall financial health. Contents Page Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time. 86 -91 Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source; property tax. 92 -101 Debt Capacity These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. 102 -108 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. 109 -110 Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 112 -117 The City of Saratoga implemented GASB Statement No. 34 in fiscal year 2001/02; schedules presenting government -wide information include information beginning in that year. The City of Saratoga implemented GASB Statement No. 44 in fiscal year 2007/08; newly required schedules presenting information in the Statistical Section include the earliest available information. 85 CITY OF SARATOGA NET POSITION BY COMPONENT LAST NINE YEARS (ACCRUAL BASIS OF ACCOUNTING) $150,000 $100,000 $50,000 Net Positon by Component 2005 2006 2007 2008 2009 2010 2011 2012 2013 ■ Net investment in capital assets 86 ■ Restricted ■ Unrestricted (amounts expressed in thousands) Fiscal Year 2005 2006 2007 2008 Primary government Governmental activities Net investment in capital assets $ 105,784 $ 107,100 $ 108,102 $ 109,818 Restricted 6,328 5,370 5,928 5,940 Unrestricted 6,789 9,955 8,593 9,710 Total primary government $ 118,901 $ 122,425 $ 122,623 $ 125,468 $150,000 $100,000 $50,000 Net Positon by Component 2005 2006 2007 2008 2009 2010 2011 2012 2013 ■ Net investment in capital assets 86 ■ Restricted ■ Unrestricted 2009 2010 $ 108,818 $ 108,966 5,281 5,519 0 �cn 0 Cl),) 2011 2012 $ 110,016 $ 111,201 5,830 1,938 '7 ncn 1'1 11A0 '1n1 1 $ 112,353 1,971 1 '7 ') c-7 1GG,OJO .p 1GJ,V 1O ID 1GJ,OIV .D 1GJ,J0/ 1G /,VO1 87 CITY OF SARATOGA CHANGES IN NET POSITION LAST NINE YEARS (ACCRUAL BASIS OF ACCOUNTING) (amounts expressed in thousands) Taxes: Fiscal Year 2005 2006 2007 2008 Expenses: 8,099 Sales taxes 1,011 988 Governmental activities: 1,058 Local taxes 1,143 1,288 General and intergovernmental services $ 4,160 $ 3,473 $ 4,532 $ 6,293 Public safety 3,736 3,427 3,844 4,166 Public works 3,829 4,752 6,425 5,325 Community services 1,929 1,395 1,437 1,286 Community development services 2,349 2,226 1,993 2,032 Interest on long -term debt (unallocated) 760 754 768 714 Total governmental activities expenses 16,763 16,027 18,999 19,816 Program revenues: 13,871 Change in net position (1,018) 3,524 Charges for services: 2,845 Net position - beginning of year 119,919 118,901 General and intergovernmental services - 31 452 1,787 Public safety 141 122 - 411 Public works 1,988 1,890 528 1,705 Community services 757 1,008 604 911 Community development services 1,890 2,665 1,328 2,110 Operating grants and contributions 1,218 1,549 2,155 151 Capital grants and contributions 865 1,568 1,282 1,715 Total governmental activates program revenw 6,859 8,833 6,349 8,790 Net (expense) revenue and change in net ass( (9,904) (7,194) (12,650) (11,026) General revenue and other changes in net position Taxes: Property taxes 4,841 5,652 5,772 8,099 Sales taxes 1,011 988 995 1,058 Local taxes 1,143 1,288 1,099 694 Franchise taxes 995 1,040 1,187 1,625 Motor vehicle in -lieu 420 718 177 149 Total Taxes 8,410 9,686 9,230 11,625 Intergovernmental - - 673 841 Investment earnings 283 709 2,813 1,057 Other revenues 193 323 132 348 Total general revenues 8,886 10,718 12,848 13,871 Change in net position (1,018) 3,524 198 2,845 Net position - beginning of year 119,919 118,901 122,425 122,623 Net position - end of year $ 118,901 $ 122,425 $ 122,623 $ 125,468 Source: CAFR 88 2009 2010 2011 2012 2013 $ 5,595 $ 3,729 $ 4,368 $ 3,486 $ 4,143 4,211 4,339 4,457 4,300 4,382 7,643 6,535 6,645 9,121 6,922 1,634 1,711 1,846 1,996 1,804 2,000 1,751 1,839 1,553 1,713 697 677 656 453 410 21,780 18,742 19,811 20,909 19,374 133 125 171 140 102 520 425 561 594 607 2,379 2,535 2,771 2,079 3,316 935 917 1,020 890 946 1,802 1,586 1,734 1,923 2,184 228 275 401 1,319 75 339 674 1,221 2,337 599 6,336 6,537 7,879 9,282 7,829 (15,444) (12205) (11,932) (11,627) (11,545) 8,336 8,371 8,199 8,457 9,153 1,043 955 991 1,101 1,051 663 560 632 683 769 1,657 1,664 1,821 1,852 1,920 116 101 146 16 16 11,815 11,651 11,789 12,109 12,909 474 522 773 910 766 397 101 65 67 51 148 91 97 118 113 12,834 12,365 12,724 13,204 13,839 (2,610) 160 792 1,577 2,294 125,468 122,858 123,018 123,810 125,387 $ 122,858 $ 123,018 $ 123,810 $ 125,387 $ 127,681 89 CITY OF SARATOGA FUND BALANCE OF GOVERNMENTAL FUNDS LAST NINE YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (amounts expressed in thousands) Fiscal Year General fund: Restricted Committed Assigned Unassigned Total general fund All other governmental funds: Restricted Special revenue funds Debt service Committed Capital project funds Total all other governmental funds $9,000 $ 8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 2005 2006 2007 2008 $ 899 $ 910 $ 711 $ 679 75 615 831 1,258 6,002 8,854 7,619 8,459 $ 6,976 $ 10,379 $ 9,161 $ 10,396 $ 202 $ 919 $ 844 $ 318 856 865 746 854 5,321 3,586 4,338 4,768 $ 6,379 $ 5,370 $ 5,928 $ 5,940 Fund Balances of Governmental Funds General - General - General - General - Debt Special Capital Restricted Committed Assigned Unassigned Service Revenue Projects ■ 2005 ■ 2006 ■ 2007 ■ 2008 ■ 2009 ■ 2010 ■ 2011 ■ 2012 ■ 2013 Source: CAFR Information prior to fiscal year 2011 have been updated to conform with GASB 54 requirements 90 2009 2010 2011 2012 2013 $ 613 $ 563 $ 513 $ 513 $ 463 550 300 500 600 675 322 196 667 3,161 792 6,744 6,952 5,804 4,655 7,989 $ 8,229 $ 8,011 $ 7,484 $ 8,929 $ 9,919 $ 484 $ 569 $ 504 $ 563 $ 622 931 893 851 862 886 3,866 4,057 4,475 3,544 3,420 $ 5,281 $ 5,519 $ 5,830 $ 4,969 $ 4,928 IF CITY OF SARATOGA GOVERNMENTAL ACTIVITIES TAX REVENUES BY SOURCE LAST NINE YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Tax revenues: Property taxes Special assessments Sales taxes Local taxes Franchise taxes Motor vehicle in -lieu Total tax revenues $10,000 $9,000 $ 8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 Source: CAFR (amounts expressed in thousands) Fiscal Year 2005 2006 2007 2008 $ 4,841 $ 5,652 $ 5,772 $ 8,099 1,476 1,369 271 1,392 1,011 988 995 1,058 1,143 1,288 1,099 694 995 1,040 1,187 1,625 420 718 177 149 $ 9,886 $ 11,055 $ 9,501 $ 13,017 Tax Revenues by Source Property taxes Special Sales taxes Local taxes Franchise Motor vehicle assessments taxes in -lieu 92 ■ 2005 ■ 2006 ■ 2007 ■ 2008 ■ 2009 ■ 2010 ■ 2011 ■ 2012 ■ 2013 2009 2010 2011 2012 2013 $ 8,336 $ 8,371 $ 8,199 $ 8,457 $ 9,153 1,368 1,247 1,255 1,243 1,185 1,043 955 991 1,101 1,051 663 560 632 683 769 1,657 1,664 1,821 1,852 1,920 116 101 146 16 16 $ 13,183 $ 12,898 $ 13,044 $ 13,352 $ 14,094 93 CITY OF SARATOGA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST NINE YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) (amounts expressed in thousands) Revenues: Property taxes Special assessments Sales taxes Other local taxes Licensed and permits Fines and forfeitures Intergovernmental - federal Intergovernmental - state Intergovernmental - other Franchise fees Use of money any property Other revenues Current services charges Total tax revenues Expenditures: Current: General and intergovernmental services Public safety Public works Community services Community development services Capital outlay Debt service: Principal Interest and fiscal charges Total expenditures Excess of revenues Fiscal Year ,)nn,; )nnr, ?nm ?nng $ 4,893 $ 5,652 $ 4,758 $ 7,877 1,411 1,370 1,285 1,566 1,011 987 995 1,058 851 1,288 1,126 773 100 79 1,340 1,671 162 259 396 344 90 - - - 1,375 2,660 3,631 1,641 671 976 629 777 1,294 1,041 1,187 1,622 664 752 2,813 924 153 1,719 151 326 3,093 2,715 900 4,184 15,768 19,498 19,211 22,763 3,238 3,346 3,806 4,083 3,731 3,423 3,824 4,166 2,599 3,501 5,714 4,717 1,875 1,210 1,381 1,262 1,990 1,847 1,962 2,026 1,777 2,908 2,130 4,246 255 270 280 295 766 760 774 721 16,231 17,265 19,871 21,515 (463) 2,233 (660) 1,247 Othe r financing s ource s (us e s): Refunded bond proceeds - - - - Payment for refunded bonds - - - Net original issue premium - - - - Transfers in 2,492 499 3,422 2,241 Transfers out (2,492) (499) (3,422) (2,241) Total other financing sources (uses) - - - - Net change in fund balances $ (463) $ 2,233 $ (660) $ 1,247 Debt as a percentage of noncapital expenditures 7.06% 7.17% 5.94% 5.62% Source: CAFR 94 CITY OF SARATOGA CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS LAST NINE YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) 2009 2010 2011 2012 2013 $ 8,335 $ 8,371 $ 8,199 $ 8,457 $ 9,153 1,368 1,247 1,255 1,243 1,185 1,043 954 991 1,101 1,051 663 560 632 683 769 1,460 1,489 1,950 1,728 2,177 360 359 285 234 199 - 430 1,033 1,915 975 1,283 1,258 1,480 1,728 1,142 290 258 337 73 269 1,657 1,664 1,821 1,852 1,920 794 595 550 589 527 1,966 1,794 2,169 2,199 2,421 3,330 3,102 3,524 3,145 3,269 4,206 4,349 4,467 4,310 4,392 4,700 4,730 4,717 4,751 4,966 1,424 1,223 1,322 1,269 1,318 2,450 2,111 2,193 1,888 2,047 4,060 2,584 3,704 5,179 3,979 310 330 350 370 455 705 685 665 551 414 21,185 19,114 20,942 21,463 20,840 (1,966) (135) (240) 339 948 - - - 11,995 - - - - (12,235) - - - - 460 - 2,043 1,172 1,725 510 1,291 (2,043) (1,017) (1,700) (485) (1,291) - 155 25 245 - $ (1 ,966) $ 20 $ (215) $ 584 $ 948 4.89% 5.80% 5.56% 4.68% 4.76% 95 CITY OF SARATOGA PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS LAST NINE YEARS (Property Tax Rates per $100 of Assessed Value) 0.0129 0.0119 0.0346 0.0113 Fiscal Year 0.0000 0.0140 2005 2006 2007 2008 General 1.0000 1.0000 1.0000 1.0000 County Retirement Levy 0.0388 0.0388 0.0388 0.0388 County Library 0.0024 0.0024 0.0024 0.0024 City of Saratoga 0.0148 0.0117 0.0096 0.0113 0.3247 1.0560 1.0529 1.0508 1.0525 Campbell School District 0.0529 0.0512 0.0508 0.0475 County Bond 2008 Hospital 0.0000 0.0000 0.0000 0.0000 Campbell Elementary 2002 0.0000 0.0000 0.0000 0.0000 Campbell Elementary 2010 0.0000 0.0000 0.0000 0.0000 Campbell Union High 1999 0.0198 0.0224 0.0198 0.0285 Campbell Union High 2006 0.0000 0.0000 0.0000 0.0000 Cupertino Elementary School District 0.0360 0.0350 0.0289 0.0337 Moreland Elementary School District 0.0612 0.0561 0.0556 0.0569 Saratoga School District 0.0361 0.0356 0.0351 0.0363 Campbell Union High School District 0.0197 0.0224 0.0198 0.0285 Fremont Union High School District 0.0268 0.0260 0.0243 0.0241 Los Gatos- Saratoga Joint Union High School District 0.0409 0.0371 0.0651 0.0345 Foothill- DeAnza Community College District 0.0129 0.0119 0.0346 0.0113 West Valley Community College District 2004 0.0000 0.0140 0.0126 0.0118 West Valley Community College District 2012 0.0000 0.0000 0.0000 0.0000 Saratoga Fire District 0.0017 0.0052 0.0049 0.0053 Santa Clara Valley Water District - State Water Proj 0.0086 0.0069 0.0070 0.0067 Santa Clara Valley Water District - Zone W -1 0.0006 0.0009 0.0002 0.0040 0.3172 0.3247 0.3587 0.3291 Total Tax Rate Source: California Municipal Statistics, Inc. 1.3732 1.3776 1.4095 1.3816 2009 2010 2011 2012 2013 1.0000 1.0000 1.0000 1.0000 1.0000 0.0388 0.0388 0.0388 0.0388 0.0388 0.0024 0.0024 0.0024 0.0024 0.0024 0.0104 0.0094 0.0094 0.0088 0.0080 1.0516 1.0506 1.0506 1.0500 1.0492 0.0524 0.0285 0.0249 0.0283 0.0246 0.0000 0.0122 0.0095 0.0047 0.0051 0.0000 0.0267 0.0298 0.0266 0.0220 0.0000 0.0000 0.0005 0.0003 0.0086 0.0299 0.0183 0.0196 0.0186 0.0165 0.0000 0.0131 0.0131 0.0156 0.0160 0.0306 0.0000 0.0000 0.0000 0.0000 0.0565 0.0000 0.0000 0.0000 0.0000 0.0363 0.0000 0.0000 0.0000 0.0000 0.0299 0.0000 0.0000 0.0000 0.0000 0.0339 0.0000 0.0000 0.0000 0.0000 0.0330 0.0000 0.0000 0.0000 0.0000 0.0123 0.0000 0.0000 0.0000 0.0000 0.0032 0.0140 0.0139 0.0137 0.0139 0.0000 0.0000 0.0000 0.0000 0.0150 0.0053 0.0000 0.0000 0.0000 0.0000 0.0059 0.0071 0.0070 0.0063 0.0069 0.0002 0.0003 0.0002 0.0001 0.0000 0.3294 0.1202 0.1185 0.1142 0.1286 1.3810 1.1708 1.1691 1.1642 1.1778 97 CITY OF SARATOGA ASSESSED VALUE OF TAXABLE PROPERTY LAST NINE YEARS S12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Total Assessed Property 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Santa Clara County Assessor data, MuniServices, LLC 98 ■ Unsecured ■ Other ■ Industrial ■ Commercial ■ Residential (amounts expressed in thousands) Fiscal Year Total Ended Residential Commercial Industrial Other Unsecured Assessed June 30 Property Property Property Property Property Property 2005 $ 7,114,095 $ 166,071 $ 8,746 $ 138,912 $ 42,965 $ 7,470,789 2006 7,883,965 177,149 8,921 161,496 46,874 8,278,405 2007 8,467,894 187,142 9,099 192,470 39,764 8,896,369 2008 9,025,628 208,369 9,281 210,269 35,775 9,489,322 2009 9,605,309 213,951 9,467 223,190 43,933 10,095,850 2010 9,724,687 120,769 9,656 327,898 58,210 10,241,220 2011 9,639,782 107,269 9,633 323,881 57,172 10,137,737 2012 9,834,082 111,232 9,706 323,563 55,535 10,334,118 2013 10,312,597 112,875 11,455 335,765 62,378 10,835,070 S12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 Total Assessed Property 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: Santa Clara County Assessor data, MuniServices, LLC 98 ■ Unsecured ■ Other ■ Industrial ■ Commercial ■ Residential .. Total Less: Total Taxable Direct Tax Exempt Assessed Tax Real Property Value Rate $ (76,932) $ 7,393,857 1.0560 (133,951) 8,144,454 1.0529 (140,859) 8,755,510 1.0508 (159,369) 9,329,953 1.0525 (161,488) 9,934,362 1.0516 (230,127) 10,011,093 1.0506 (230,477) 9,907,260 1.0506 (230,868) 10,103,250 1.0476 (233,895) 10,601,175 1.0492 .. CITY OF SARATOGA PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO JUNE 30, 2013 (amounts expressed in thousands) 2013 2004 Taxpayer Taxable Assessed Value Cupertino Village Associates, LLC $ 35,770 Quito Village Group, LLC 20,400 San Jose Water Works 17,106 John I. and Michelle Keller 15,594 Gregpenn Properties, LLC 13,056 Argonaut Associates, LLV 10,776 Stormin Norman LLC 10,000 Public Storage Inc. 9,686 Coyote Properties IV LLC 9,300 Summerhill Creekside LLC 9,166 Saratoga Office Center Partner Di Salvo Family LLC 2 Peterschmidt David C Roxanne N Navico Inc Sobrato Contraction Corp 0.16% Morrison Terri E 6 Krishnamurthi Ashok 4 Jordan Deloise A Trust House David L Top Ten Total Assessed Value $ 150,854 City Total Assessed Value $ 10,601,175 100 $ 6,908,796 % of Total % of Total Taxable Taxable Taxable Assessed Assessed Assessed Rank Value Value Rank Value 1 0.34% 2 0.19% 3 0.16% $ 9,901 6 0.14% 4 0.15% 5 0.12% 6 0.10% 7 0.09% 8 0.09% 9 0.09% 10 0.09% 22,325 1 0.32% 12,901 2 0.19% 12,005 3 0.17% 11,379 4 0.16% 10,992 5 0.16% 9,423 7 0.14% 9,282 8 0.13% 8,904 9 0.13% 8.594 10 0.12% 100 $ 6,908,796 CITY OF SARATOGA PROPERTY TAX LEVIES AND COLLECTIONS LAST NINE YEARS Fiscal Year Ended T---- '1n GVVJ 2006 2007 2008 2009 2010 2011 2012 2013 Total Tax Levy for Fiscal Year $ 4,972,875 5,243,038 6,032,558 8,108,364 8,332,184 8,371,396 8,199,341 8,456,687 9,152,865 Source: City of Saratoga Collected within the Fiscal Year of the Levy Amount Percentage $ 4,972,875 100.0% 5,243,038 100.0% 6,032,558 100.0% 8,108,364 100.0% 8,332,184 100.0% 8,371,396 100.0% 8,199,341 100.0% 8,456,687 100.0% 9,152,865 100.0% 101 Collections in Subsequent Years Total Collections to Date Amount Percentage $ 4,972,875 100.0% 5,243,038 100.0% 6,032,558 100.0% 8,108,364 100.0% 8,332,184 100.0% 8,371,396 100.0% 8,199,341 100.0% 8,456,687 100.0% 9,152,865 100.0% CITY OF SARATOGA RATIOS OF OUTSTANDING DEBT BY TYPE LAST NINE YEARS (amounts expressed in thousands, except per capita amounts) Fiscal Year Governmental activities General obligation bonds Net original issue premium Total primary government Percentage of Personal Income' Per capital Source: CAFR 2005 2006 2007 2008 $ 14,440 $ 14,170 $ 13,890 $ 13,595 S 14,440 $ 14,170 $ 13,890 $ 13,595 0.91% 0.82% 0.75% 0.74% 468 460 443 430 'US Census Bureau, adjusted for inflation, MuniServices LLC 2Population information from California State Controller's Office 102 01 68£ 60tb Lit S0tl 61 t, %£9'0 %LS'0 %LS'0 %t,9'0 %9L'O Ot,9`I1 $ 966`11 $ 909`ZI $ 996`ZI $ 98Z`£i $ UK ZiOZ TIN OiOZ 60OZ CITY OF SARATOGA RATIOS OF GENERAL BONDED DEBT OUTSTANDING LAST NINE YEARS (amounts expressed in thousands, except per capita amounts) Fiscal Year Percentage of actual taxable value of property 0.18% 0.16% 0.15% 0.14% Per capital 440 431 419 403 Source: CAFR 'Population information from California State Controller's Office From: Demographics & Economic Statistic Population (State Controller's Office) 30,850 104 30,835 31,352 31,592 2005 2006 2007 2008 General obligation bonds $ 14,440 $ 14,170 $ 13,890 $ 13,595 Net original issue premium - - - - Less: Amount available in debt service fund (855) (865) (747) (854) Total primary government $ 13,585 $ 13,305 $ 13,143 $ 12,741 Percentage of actual taxable value of property 0.18% 0.16% 0.15% 0.14% Per capital 440 431 419 403 Source: CAFR 'Population information from California State Controller's Office From: Demographics & Economic Statistic Population (State Controller's Office) 30,850 104 30,835 31,352 31,592 2009 2010 2011 2012 2013 $ 13,285 $ 12,955 $ 12,605 $ 11,995 $ 11,540 - - - 438 416 (926) (890) (848) (860) (885) $ 12,359 $ 12,065 $ 11,757 $ 11,135 $ 10,655 0.12% 0.12% 0.12% 0.11% 0.10% 390 377 389 367 347 31,679 31,997 30,195 30,363 30,706 CITY OF SARATOGA LEGAL DEBT MARGIN INFORMATION LAST NINE YEARS Debt Limit Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit Legal debt margin calculation Assessed value Add back: exempt real property Total assessed value (amounts expressed in thousands) Debt limit (15% of total assessed value) Debt applicable to limit: $ 7,393,857 Fiscal Year $ 8,755,510 2005 2006 2007 2008 $ 1,120,618 $1,241,761 $1,334,455 $ 1,423,398 13,585 13,305 13,143 12,741 $ 1,107,033 $1,228,456 $1,321,312 $1,410,657 1.21% 1.07% 0.98% 0.90% Debt limit (15% of total assessed value) Debt applicable to limit: $ 7,393,857 $ 8,144,454 $ 8,755,510 $ 9,329,953 76,932 133,951 140,859 159,369 $ 7,470,789 $ 8,278,405 $ 8,896,369 $ 9,489,322 $1,120,618 $1,241,761 $ 1,334,455 $ 1,423,398 General obligation bonds $ 14,440 $ 14,170 $ 13,890 $ 13,595 Net original issue premium - - - - Less: Amount available in debt service fund (855) (865) (747) (854) Total net debt applicable to limit $ 13,585 $ 13,305 $ 13,143 $ 12,741 Legal debt margin $1,107,033 $1,228,456 $1,321,312 $1,410,657 Source: CAFR 106 2009 2010 2011 2012 2013 $ 1,514,378 $ 1,536,183 $ 1,520,660 $ 1,550,118 $ 1,625,261 12,359 12,065 11,757 11,135 10,655 $ 1,502,019 $ 1,524,118 $ 1,508,903 $ 1,538,983 $ 1,614,606 0.82% 0.79% 0.77% 0.72% 0.66% $ 9,934,362 $ 10,011,093 $ 9,907,259 $ 10,103,250 $ 10,601,175 161,488 230,127 230,477 230,868 233,895 $ 10,095,850 $ 10,241,220 $ 10,137,736 $ 10,334,118 $ 10,835,070 $ 1,514,378 $ 1,536,183 $ 1,520,660 $ 1,550,118 $ 1,625,261 $ 13,285 $ 12,955 $ 12,605 $ 11,995 $ 11,540 - - - 438 416 (926) (890) (848) (860) (885) $ 12,359 $ 12,065 $ 11,757 $ 11,135 $ 10,655 $ 1,502,019 $ 1,524,118 $ 1,508,903 $ 1,538,983 $ 1,614,606 107 CITY OF SARATOGA DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT (amount expressed in thousands) Estimated Estimated Share Debt Percentage of Overlapping Outstanding Applicable' Debt Direct Debt: City of Saratoga $ 11,540 100.000% $ 11,540 Total Direct Debt 11,540 Overlapping Tax and Assessment Debt: Santa Clara County 850,800 3.453% 29,378 Foothill-De Anza Community College District 631,564 1.654% 10,446 West Valley Community College District 308,533 10.284% 31,730 Campbell Union High School District 156,055 5.606% 8,748 Fremont Union High School District 299,550 3.668% 10,987 Los Gatos - Saratoga Joint Union High School District 46,905 39.202% 18,388 Campbell Union School District 146,472 6.879% 10,076 Cupertino Union School District 164,417 6.100% 10,029 Moreland School District 83,200 12.968% 10,789 Saratoga Union School District 42,987 85.972% 36,957 Saratoga Fire Protection District 4,254 97.204% 4,135 Santa Clara Valley Water District Benefit Assessment 123,100 3.453% 4,251 Total Overlapping Tax and Assessment Debt 185,914 Overlapping General Fund Debt: Santa Clara County General Fund Obligations 819,957 3.453% $ 28,313 Santa Clara County Pension Obligations 378,995 3.453% 13,087 Santa Clara County Board of Education Certificates of Participation 10,400 3.453% 359 Santa Clara County Vector Control District Certificates of Participation 3,455 3.453% 119 Foothill-De Anza Community College District Certificates of Participation 17,225 1.654% 285 West Valley - Mission College District General Fund Obligations 65,435 10.284% 6,729 Campbell Union High School District Certificates of Participation 11,325 5.606% 635 Los Gatos - Saratoga Joint Union High School District Certificates of Participation 8,420 39.202% 3,301 Saratoga Union School District Certificates of Participation 5,540 85.972% 4,763 Midpeninsula Open Space Park District General Fund Obligations 135,650 5.953% 8,075 Total Overlapping General Fund Debt 65,666 Total Overlapping Tax & Assessement and General Fund Debt 251,580 Combined Total Debt` $ 263,120 ' Percentage of overlapping agency's assessed valuation located within boundaries of the city. 2 Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non - bonded capital lease obligations. Source: California Municipal Statistics, Inc. 108 CITY OF SARATOGA DEMOGRAPHIC AND ECONOMIC STATISTICS LAST NINE YEARS 35,000 30,000 25,000 20,000 15,000 10,000 Per Capita Personal Fiscal City Income Year Population' (in thousands)Z 2005 30,850 $ 1,586,245 2006 30,835 1,719,175 2007 31,352 1,860,365 2008 31,592 1,843,425 2009 31,679 1,747,699 2010 31,997 2,401,151 2011 30,195 2,211,963 2012 30,363 2,119,463 2013 30,706 2,179,904 35,000 30,000 25,000 20,000 15,000 10,000 Per Capita Personal Labor Unemployment Income2 Force3 Rate $ 51,418 12,600 2.5% 55,754 12,700 2.1% 59,338 12,900 2.3% 58,351 13,100 3.2% 55,169 13,300 6.0% 75,043 13,200 5.6% 73,256 13,400 5.0% 69,804 14,000 4.4% 70,993 13,900 4.2% Labor Force vs. Population 2005 2006 2007 2008 2009 2010 2011 2012 2013 --$-- Population (Labor Force Source: ' Popluaton information from California State Controller's Office ZUS Census Data, adjusted for inflation, MuniServices LLC 3EDD Labor Market Information Division, MuniServices LLC 109 CITY OF SARATOGA PRINCIPAL EMPLOYERS CURRENT YEAR AND EIGHT YEARS AGO AT JUNE 30, 2013 Total City Employmene 14,000 lEarliest information available 2EDD Labor Market Information Division, MuniServices LLC Source: City of Saratoga 110 12,600 2013 2005' Percentage Percentage of Total City of Total City Employer Employees Rank Employment Employees Rank Employment West Valley Community College 765 1 5.46% Saratoga Retirement Community 260 2 1.86% Saratoga High School 132 3 0.94% Sub -Acute Saratoga Hospital 120 4 0.86% Our Lady of Fatima 101 5 0.72% Prospect High School 100 6 0.71% Redwood Middle School 96 7 0.69% Gene's Fine Foods 80 8 0.57% 85 1 0.67% Safeway 65 9 0.46% 65 2 0.52% Villa Montalvo 60 10 0.43% Saratoga Country Club 65 3 0.52% 24 Hour Fitness 30 4 0.24% Windermere 27 5 0.21% CVS 20 6 0.16% Classic Car Wash 20 7 0.16% Harmonic European Day Spa 20 8 0.16% Hinshaw, Draa & Marsh 20 9 0.16% Bella Saratoga 20 10 0.16% Total City Employmene 14,000 lEarliest information available 2EDD Labor Market Information Division, MuniServices LLC Source: City of Saratoga 110 12,600 This page is intentionally blank 111 CITY OF SARATOGA FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION LAST NINE FISCAL YEARS 70.00 60.00 50.00 40.00 30.00 20.00 10.00 Full -Time Equivalents t►� 1 I 1 7 �� ►•11 I I L' �►�I I I I yt ►. L I I I i:� ►• I I I I I!1 GI 1 7 [ I i ►• L 1 7 f t ►� I I I � 6 T►� 1 J R� Source: City of Saratoga Budget Document 112 ■ Parks & Rec • Comm Development ■ Public works ■ General govt Fiscal Year 2005 2006 2007 2008 Function General government 12.65 10.75 11.00 13.00 Public works 20.75 20.75 21.75 22.75 Community development 14.00 13.00 14.00 14.00 Parks and recreation 10.35 10.35 10.60 10.60 Total 57.75 54.85 57.35 60.35 70.00 60.00 50.00 40.00 30.00 20.00 10.00 Full -Time Equivalents t►� 1 I 1 7 �� ►•11 I I L' �►�I I I I yt ►. L I I I i:� ►• I I I I I!1 GI 1 7 [ I i ►• L 1 7 f t ►� I I I � 6 T►� 1 J R� Source: City of Saratoga Budget Document 112 ■ Parks & Rec • Comm Development ■ Public works ■ General govt ?nnA ?ni n x(11 1 MI? ?()VI 12.00 11.75 11.45 10.80 10.90 21.75 21.75 21.65 21.55 20.65 14.00 12.00 12.00 12.00 11.00 10.60 9.35 9.50 9.50 9.35 58.35 54.85 54.60 53.85 51.90 113 CITY OF SARATOGA OPERATING INDICATORS BY FUNCTION LAST NINE FISCAL YEARS Function Part 1 crimesl Total incidents Police reports Public Works Street resurfacing (miles) Street lights repaired Potholes filled (sq. ft.) Community Development Total permit valuation ($000) Parks and Recreation Classes, trips (enrollment) community events Adult Exercise (e.g. JS Dance. Jazzerxcise) Sports programs (e.g. Adult basketball, softball) Prescholl programs (enrollment) Staffed Day /summer camps (enrollment) Teen/youth council (enrollment) Senior center (enrollment/attendance days) Fiscal Year 2005 2006 2007 2008 463 426 425 381 42,011 40,567 39,663 41,243 1,767 1,659 1,767 1,941 - 5 14 - 2 3 3 12 - 5,000 5,000 7,000 74,668 94,485 69,935 70,442 5,604 5,712 4,817 4,782 272 312 285 362 470 473 515 591 200 163 159 225 301 287 205 242 2,506 3,798 2,221 94 22,312 22,591 18,515 17,826 'Part 1 Crimes are the following as reported to DOJ: homicide, rape; robbery, burglary, assault, theft, auto theft, and arson. Source: City of Saratoga various records 114 2009 2010 2011 2012 2013 282 173 373 287 277 41,384 39,942 41,642 35,664 40,141 1,949 1,273 1,549 1,329 1,106 6 3 - 6 - 25 24 25 41 29 10,000 10,000 11,000 10,000 12,060 61,117 44,658 50,936 59,675 79,896 4,698 4,366 6,135 5,479 5,365 515 545 661 647 1,663 459 423 - - - 171 161 142 132 188 225 331 326 - 45 419 2,110 1,323 787 605 16,325 16,533 14,640 15,221 12,269 ELI CITY OF SARATOGA CAPITAL ASSET STATISTICS BY FUNCTION LAST NINE FISCAL YEARS Function Public safety Police Station Fire Station Saratoga Fire District Central Fire District Public Works Street Miles - Private Street Miles - Public West Valley Sanitation District Number of Connections Length of Sewer Lines Cupertino Valley Sanitation District Number of Connections Length of Sewer Lines Parks and Recreation Parks Acreage Parks Source: City of Saratoga various records Fiscal Year 2005 2006 2007 2008 13 13 1 1 1 1 1 1 1 1 13 13 13 13 137 137 137 137 8,601 8,621 8,651 8,651 120 120 127 127 2,118 2,118 2,915 2,927 36 36 36 36 81 81 81 81 15 15 15 15 116 2009 2010 2011 2012 2013 1 1 1 1 1 1 1 1 1 1 14 14 14 14 14 140 140 140 140 141 8,683 8,687 8,664 8,679 8,821 127 127 127 127 127 2,938 2,949 2,954 2,959 2,961 37 37 37 37 37 84 84 84 84 84 15 15 15 15 15 117 This page is intentionally blank 118 CITY OF SARATOGA, CALIFORNIA SINGLE AUDIT REPORT FOR THE YEAR ENDED JUNE 30, 2013 CHAVAN & ASSOCIATES, LLP CERTIFIED PUBLIC ACCOUNTANTS 1475 SARATOGA AVE., SUITE 180 SAN JOSE, CA 95129 279 CITY OF SARATOGA, CALIFORNIA SINGLE AUDIT REPORT TABLE OF CONTENTS JUNE 30, 2013 PAGE NO. Independent Auditor's Report on Compliance with Requirements that could have a Direct Material Effect on Each Major Program and Internal Control over Compliance and on the Schedule of Expenditures of Federal Awards in Accordance with O M B Circular A -133 ........................................ ............................... 1 - 3 Schedule of Expenditures of Federal Awards ......................................... ............................... 4 Notes to Schedule of Expenditures of Federal Awards .......................... ............................... 5 Schedule of Findings and Questioned Costs: Section I - Summary of Auditor's Results ........................................ ............................... 6 Section II - Financial Statement Findings ......................................... ............................... 7 Section III - Federal Awards Findings and Questioned Costs ......... ............................... 7 Summary Schedule of Prior Year Findings ............................................. ............................... 8 Independent Auditor's Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statement Performed in Accordance with Government Auditing Standards .... ............................... 9-10 :1 Chavan & Associates, LIP Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT MATERIAL EFFECT ON EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE INACCORDANCE WITH OMB CIRCULAR A -133 To the Honorable Mayor and Members of the City Council of the City of Saratoga Saratoga, California Report on Compliance for Each Major Federal Program We have audited the City of Saratoga's (the City) compliance with the types of compliance requirements described in OMB Circular A -133 Compliance Supplement that could have a direct and material effect on each of the City's major federal programs for the year ended June 30, 2013. The City's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings, and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of the City's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the City's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the City's compliance. Opinion on Each Major Federal Program In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended. Page 11 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 281 info @cnallp.com • www.enallp.com Chavan & Associates, LIP Certified Public Accountants Report on Internal Control over Compliance Management of the City is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the City's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with Circular A -133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Schedule of Expenditures of Federal Awards We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of City of Saratoga as of and for the year ended June 30, 2013, and have issued our report thereon dated October 18, 2013, which contained an unqualified opinion on those financial statements. Our audit was performed for the purpose of forming our opinions on the financial statements that collectively comprise City of Saratoga's financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Circular A -133 and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain other procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of Page 12 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 282 info @cnallp.com • www.enallp.com Chavan & Associates, LIP Certified Public Accountants expenditures of federal awards is fairly stated, in all material respects, in relation to the financial statements as a whole. Restricted Use The purpose of this report is solely to describe the scope of our testing of internal control over financial reporting and compliance, and the result of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in the City's internal control over financial reporting and compliance. Accordingly, this report is not suitable for any other purpose. C �f 04 alp October 18, 2013 San Jose, California Page 13 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 283 info @cnallp.com • www.enallp.com CITY OF SARATOGA, CALIFORNIA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed Through County of Santa Clara Public Health Department Prevention and Wellness- Communities Putting Prevention to Work 93.731 SCC 162,683 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 1,113,344 The accompanying notes are an integral part of this financial statement a Federal Catalog Project Federal Federal Grantor /Pass - Through Grantor/Program Title Number (CFDA) Number Expenditures U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Passed Through County of Santa Clara Community Development Block Program 14.218 SCC $ 49,238 U.S. DEPARTMENT OF TRANSPORTATION Passed Through California Department of Transportation Highway 9 Safety Improvement 20.205 HSIPL- 5332(011) 698,873 Village Sidewalk & Curbs 20.205 t') CML- 5332(013) 60,829 Village Phase II Construction 20.205 ��� CML- 5332(019) 1,687 Quito Bridge Replacement 20.205 �l� CML - 5332(004) 24,497 Village LED Streetlights 20.205 (D CML - 5332(018) 2,510 De Anza Trail 20.205 (1> CML - 5332(012) 93,416 Total U.S. Department of Transportation (Highway Planning and Construction Cluster) 881,812 U.S. DEPARTMENT OF ENERGY Passed Through California Energy Commission Village LED Streetlights 81.128 CBG -09 -138 19,611 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed Through County of Santa Clara Public Health Department Prevention and Wellness- Communities Putting Prevention to Work 93.731 SCC 162,683 TOTAL EXPENDITURES OF FEDERAL AWARDS $ 1,113,344 The accompanying notes are an integral part of this financial statement a CITY OF SARATOGA, CALIFORNIA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 1. General 2. 3. 4. 5. The accompanying Schedule of Expenditures of Federal Awards presents activity of the federal financial assistance programs of the City of Saratoga, California (the "City "). All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through other government agencies, is included in this schedule. Significant Accounting Policies The accompanying Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting, which is described in Note 1 of the City's Comprehensive Annual Financial Report. Federal programs are labeled either as Type A or Type B. Type A programs are defined as based on the following criteria: When total cash and noncash expenditures of federal awards for programs are: Type A program means any program with all federal More than Equal to or less than expenditures that exceed: $300,000 $10 Million $100 Million $1 billion $10 billion $20 billion $10 Million $100 Million $1 billion $10 billion $20 billion $300,000 3% of federal awards $3 million 0.3% of federal awards $30 million 0.15% of federal awards Federal programs not labeled Type A as described above are labeled Type B programs. Relationship to the Basic Financial Statements The amounts reported in the accompanying Schedule of Expenditures of Federal awards agrees, in all material respects, to amounts reported within the City's financial statements. Federal award revenues are reported principally in the City's financial statements as intergovernmental revenues. Relationship to Federal Financial Reports Amounts reported in the accompanying Schedule of Expenditures of Federal Awards agree or can be reconciled with the amounts reported or to be reported in the federal financial reports. Pass - Through Entities' Identifying Number When federal awards were received from a pass - through entity, the Schedule of Expenditures of Federal Awards shows, if available, the identifying number assigned by the pass- through entity. When no identifying number is shown, the City has determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass - through entity. S 85 CITY OF SARATOGA, CALIFORNIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued Unqualified Internal control over financial reporting: Material weaknesses? Yes x No Significant deficiencies identified not considered to be material weaknesses? Yes x No Non - compliance material to financial statements noted? Yes x No Federal Awards Internal control over major programs: Material weaknesses? Yes x No Significant deficiencies identified not considered to be material weaknesses? Yes x No Type of auditor's report issued on compliance over major programs Unqualified Any audit findings disclosed that are required to be reported in accordance with Circular A -133 Section .510(a) Yes x No Identification of Major Programs: CFDANumbers Name of Federal Program 20.205 Highway Planning and Construction Dollar threshold used to distinguish between type A and type B programs: $ 300,000 Auditee qualified as low risk auditee? x Yes No 2: CITY OF SARATOGA, CALIFORNIA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Section II - Financial Statement Findings No findings noted. Section III - Federal Award Findings and Questioned Costs No findings noted. 7287 CITY OF SARATOGA, CALIFORNIA SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Section II - Financial Statement Findings Capital Assets Condition: Review and approval of capitalization of infrastructure is not required prior to staff posting additions as conversion entries and capitalizing on the Statement of Net Assets. Criteria: Internal controls should be in place to provide reasonable assurance that infrastructure assets are capitalized only after proper management approval. Cause: There are no procedures in place to require management's written authorization for capitalized infrastructure. Effect: Without required approval infrastructure assets may be capitalized improperly. Recommendation: Procedures should be implemented requiring the review and written approval of all infrastructure assets capitalized. Views of Responsible Officials and Planned Corrective Actions: and practiced procedure, for capitalization of infrastructure is upcoming year, prior to the next financial audit. Status: Implemented Section III - Federal Award Findings and Questioned Costs No findings noted. A Financial Policy, inclusive of a stated needed and will be developed in the Chaven & Associates, LIP Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS To the Honorable Mayor and Members of the City Council of the City of Saratoga Saratoga, California We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the City of Saratoga (the "City ") as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated October 18, 2013. Internal Control over Financial Reporting Management is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion Page 19 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 289 info @cnallp.com • www.enallp.com Chavan & Associates, LIP Certified Public Accountants on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. C (� �4 ap San Jose, California October 18, 2013 Page 110 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 290 info @cnallp.com • www.enallp.com CITY OF SARATOGA, CALIFORNIA SARATOGA AVE PATHWAY PROJECT METROPOLITAN TRANSPORTATION COMMISSION TRANSPORTATION DEVELOPMENT ACT ARTICLE 3 FUNDS For the Year ended June 30, 2013 L� CHAVAN & ASSOCIATES, LLP CERTIFIED PUBLIC ACCOUNTANTS 1475 SARATOGA AVE., SUITE 180 SAN JOSE, CA 95129 291 CITY OF SARATOGA, CALIFORNIA SARATOGA AVE PATHWAY PROJECT Metropolitan Transportation Commission Transportation Development Act Article 3 Funds FOR THE YEAR ENDED JUNE 30, 2013 TABLE OF CONTENTS PAGE NO. INDEPENDENT AUDITOR'S REPORT .................................................... ............................... 1 -2 STATEMENT OF GRANT REVENUES AND EXPENDITURES .................... ............................... 3 NOTES TO PROJECT FINANCIAL STATEMENT ...................................... ............................... 4 INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH Go vERNMENT A UDITING STANDARDS AND THE TRANSPORTATION DEVELOPMENT ACT .................................... ............................... 5 -6 292 Chaven & Associates, LIP Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council of the City of Saratoga Saratoga, California Report on the Financial Statements We have audited the accompanying statement of grant revenues and expenditures for the Saratoga Ave Pathway Project (the "Project ") grant of the City of Saratoga (the "City "), as of and for the year ended June 30, 2013, and the related notes to the financial statement, which comprises City's statement of grant revenues and expenditures for the Saratoga Ave Pathway Project. Management's Responsibility for the Financial Statements The City's management is responsible for the preparation and fair presentation of its financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on the Project's financial statement based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the Transportation Development Act Guidebook issued by the State of California, Department of Transportation. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statement. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statement. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Page 11 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 293 info @cnallp.com • www.enallp.com Chavan & Associates, LIP Certified Public Accountants Opinions In our opinion, the financial statement referred to above presents fairly, in all material respects, the respective financial position of the grant revenues and expenditures for the Project of the City of Saratoga, as of June 30, 2013, in accordance with accounting principles generally accepted in the United States of America. Other Information The accompanying statement was prepared to present the grant revenues and expenditures pursuant to the grant above and described in the Notes and is not intended to be a complete presentation of the City's revenues and expenditures. Other Reporting Required by Govern m en t A u diting Standards In accordance with Government Auditing Standards, we have also issued our report dated October 18, 2013 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. 67 �� 4 ap October 18, 2013 San Jose, California Page 12 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 294 info @cnallp.com • www.enallp.com CITY OF SARATOGA, CALIFORNIA SARATOGA AVE PATHWAY PROJECT Metropolitan Transportation Commission Transportation Development Act Article 3 Funds STATEMENT OF GRANT REVENUES AND EXPENDITURES FOR THE YEAR ENDED JUNE 30, 2013 Revenues: Grant revenues 8,087 Expenditures: Contractual Services 8,087 Excess of Grant Revenues over Expenditures Beginning Grant Balance Ending Grant Balance The notes to the project financial statement are an integral part of this statement. -3- 295 CITY OF SARATOGA, CALIFORNIA SARATOGA AVE PATHWAY PROJECT Metropolitan Transportation Commission Transportation Development Act Article 3 Funds NOTES TO PROJECT FINANCIAL STATEMENT FOR THE YEAR ENDED JUNE 30, 2013 SUMMARY OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Description of Reporting Entity The statement represents the grant revenues and expenditures of City of Saratoga (the "City "), Saratoga Ave Pathway Project (the "Project ") under the Transportation Development Act ( "TDA ") Article 3 Pedestrian/bicycle project funding for the year ended June 30, 2013. The Project was funded by TDA grants which are administered by Metropolitan Transportation Commission ( "MTC "). The accompanying statement of grant revenues and expenditures presents only the portion reimbursable activities of the Project and is not intended to present the financial position and result of operation of the City in conformity with accounting principles generally accepted in the United States of America. Description of Grant The TDA Articles 3 funds were made available to the City for the funding of projects exclusively for the benefit and use of pedestrians and bicyclists. It is mandated through the Public Utilities Code Section 99200 et seq. The Metropolitan Transportation Commission, as the regional transportation planning agency for the San Francisco Bay region, has adopted MTC Resolution No. 875, Revised, entitled "Transportation Development Act, Article 3, Pedestrian /Bicycle Projects," which delineates procedures and criteria for submission of request for the allocation of TDA Article 3 funding. A description of the significant accounting policies employed in the preparation of the accompanying statement follows: Statement of Grant Revenues and Expenditures The statement of grant revenues and expenditures presents the eligible costs charged to the Project grant by the City and the revenues received in reimbursement of those costs by MTC. Basis of Accounting Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the statement. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The City used the modified accrual basis of accounting. Revenues are recognized when collection of the amounts can be reasonably estimated to be received in the near future. Expenditures are generally recognized in the period in which goods and services are received or a liability is incurred. l! 296 Chavan & Associates, LIP Certified Public Accountants INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND THE TRANSPORTATION DEVELOPMENT ACT To the Honorable Mayor and Members of the City Council of the City of Saratoga Saratoga, California We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the Statement of Grant Revenues and Expenditures for the Saratoga Ave Pathway Project (the "Project ") grant of the City of Saratoga (the "City ") as of and for the year ended June 30, 2013, and the related notes to the financial statement, which comprises City's statement of grant revenues and expenditures for the Saratoga Ave Pathway Project, and have issued our report thereon dated October 18, 2013. Internal Control over Financial Reporting Management is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit of the Project's financial statement, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statement, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Project's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, including the applicable statutes, rules and regulations of the Transportation Development Act, including section 6666 of Title 21, of the California Code of Regulations, and the allocation instructions and resolutions of the Metropolitan Transportation Page 15 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 297 info @cnallp.com • www.enallp.com Chavan & Associates, LIP Certified Public Accountants Commission, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or the Transportation Development Act. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. C �� 4 alp October 18, 2013 San Jose, California Page 16 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 298 info @cnallp.com • www.enallp.com CITY OF SARATOGA, CALIFORNIA APPROPRIATIONS LIMIT SCHEDULE AND INDEPENDENT ACCOUNTANT'S REPORT For the Year ended June 30, 2014 CHAVAN & ASSOCIATES, LLP CERTIFIED PUBLIC ACCOUNTANTS 1475 SARATOGA AVE., SUITE 180 SAN JOSE, CA 95129 299 CITY OF SARATOGA, CALIFORNIA APPROPRIATIONS LINHT SCHEDULE AND INDEPENDENT ACCOUNTANT'S REPORT FOR THE YEAR ENDED JUNE 30, 2014 TABLE OF CONTENTS INDEPENDENT ACCOUNTANT'S REPORT ........................................... ............................... APPROPRIATIONS LIMIT SCHEDULE ................................................. ............................... NOTES TO THE APPROPRIATIONS LIMIT SCHEDULE .......................... ............................... 300 PAGE NO. 1 -2 3 4 Chavan & Associates, LLP Certified Public Accountants INDEPENDENT ACCOUNTANTS' REPORT ON AGREED -UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT UNDER ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION To the Honorable Mayor and Members of the City Council of the City of Saratoga Saratoga, California We have performed the procedures enumerated below to the accompanying Appropriations Limit Schedule of the City of Saratoga, (the City), for the year ending June 30, 2014. These procedures, which were agreed to by the City and the League of California Cities (as presented in the publication entitled Agreed Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII -B of the California Constitution) were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City management is responsible for the Appropriations Limit Schedule. This agreed upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1. We obtained completed worksheets used by the City to calculate its appropriation limit for the fiscal year ending June 30, 2014, and determined that the limit and annual adjustment factors were adopted by resolution of City Council. We also determined that the population and inflation options were selected by a recorded vote of the City Council. Findings: No exceptions were noted as a result of our procedures. 2. For the accompanying Appropriations Limit Schedule, we added the prior year's limit to the total adjustments and agreed the resulting amount to the current year's limit. Findings: No exceptions were noted as a result of our procedures. 3. We agreed the current year information presented in the accompanying Appropriation Limit Schedule to corresponding information in worksheets used by the City. Finding: No exceptions were noted as result of our procedures. 4. We agreed the prior year appropriations limit in the accompanying Appropriation Limit Schedule to the corresponding information in worksheets used by the City. Finding: No exceptions were noted as a result of our procedures. Page 11 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 301 info @cnallp.com • www.cnallp.com Chavan & Associates, LLP Certified Public Accountants We were not engaged and did not conduct an examination, the objective of which would be the expression of an opinion on the accompanying Appropriations Limit Schedule. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII -B of the California Constitution. This report is intended solely for the use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. 67 �f 4 ap October 18, 2013 San Jose, California Page 12 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 302 info @cnallp.com • www.cnallp.com CITY OF SARATOGA, CALIFORNIA APPROPRIATIONS LIMIT SCHEDULE FOR THE YEAR ENDED JUNE 30, 2014 A. Appropriations limit for the year ended June 30, 2013 B. Calculation Factors: 1. Population increase % 2. Inflation increase % 3. Total adjustment factor % C. Annual adjustment Increase D. Other Adjustments: Loss responsibility ( -) Transfers to private ( -) Transfers to fees ( -) Assumed responsibility ( +) E. Total Adjustments F. Appropriations limit for the year ending June 30, 2014 Greater of population increase % for: City of Saratoga Santa Clara County 3 303 Amount Source $ 33,521,156 Prior Year Schedule 1.0157 1) State Department of Finance 1.0512 State Department of Finance 1.06770384 B1 xB2 2,269,511 [(B3 -1)A)] 2,269,511 $ 35,790,667 1.0129 1.0157 N/A N/A N/A N/A (C +D) (A +E) CITY OF SARATOGA, CALIFORNIA NOTES TO THE APPROPRIATIONS LIMIT SCHEDULE FOR THE YEAR ENDED JUNE 30, 2014 1. PURPOSE OF LIMITED PROCEDURES REVIEW Under Article XIIIB of the California Constitution (the Gann Spending Limitations Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIB, the annual calculation of the appropriation limit is subject to a limited procedures review in connection with the annual audit. Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986 -87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below. 3. INFLATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year 2013 -14 represents the annual percentage change in the per capita personal income. 4. POPULATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction's own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year 2013 -14 represents the annual percentage change in population for the County. 5. OTHER ADJUSTMENTS A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustment for the year ending June 30, 2014. n, Chavan & Associates, LLP {Certified Public Accountants City Council The City of Saratoga Saratoga, California We have audited the basic financial statements of the City of Saratoga as of and for the year ended June 30, 2013, and have issued our report thereon dated October 18, 2013. Professional standards require that we advise you of the following matters relating to our audit. Our Responsibility under Generally Accepted Auditing Standards As communicated in our engagement letter, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America (and when applicable, Government Auditing Standards). Our audit of the financial statements does not relieve you or management of your respective responsibilities. Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the City of Saratoga solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control. We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Other Information in Documents Containing Audited Financial Statements Pursuant to professional standards, our responsibility as auditors for other information in documents containing the City of Saratoga's audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements. Planned Scope and Timing of the Audit We conducted our audit consistent with the planned scope and timing as previously communicated. Page 11 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 305 sheldon @cnallp.com • www.cnallp.com Chavan & Associates, LLP {Certified Public Accountants Qualitative Aspects of the Entity's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the City of Saratoga is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2013 other than those required by GASB 63 and 65. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are accumulated depreciation from capital assets and unfunded liabilities and expenses based on assumptions in actuarial studies performed on defined benefit pension plans. Management's estimates are based on generally accepted accounting principles using a rational basis for allocation and presentation. We evaluated the key factors and assumptions used to develop these estimates and determined that they are reasonable in relation to the basic financial statements taken as a whole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the City of Saratoga's financial statements relate to: cash and investments, capital assets, and long -term obligations. Significant Difficulties Encountered during the Audit We did not encounter any significant difficulties in dealing with management relating to the performance of the audit. Uncorrected and Corrected Misstatements For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and Page 12 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 306 sheldon @cnallp.com • www.cnallp.com Chavan & Associates, LLP {Certified Public Accountants communicate them to the appropriate level of management. There were no known and likely misstatements identified during the audit. In addition, professional standards require us to communicate to you all material, corrected misstatements that were brought to the attention of management as a result of our audit procedures. There were no material, corrected misstatements resulting from the audit procedures performed. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the City of Saratoga's financial statements or the auditor's report. No such disagreements arose during the course of the audit. Representations Requested from Management We have requested certain written representations from management, which are included in the attached letter dated October 18, 2013. Management's Consultations with Other Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Other Significant Findings or Issues In the normal course of our professional association with the City of Saratoga, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the City of Saratoga, and operational plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the entity's auditors. This report is intended solely for the information and use of the Council, authorized committees and management of the City of Saratoga and is not intended to be and should not be used by anyone other than these specified parties. C C� A ap San Jose, CA November 13, 2013 Page 13 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408 - 217 -8749 • E -Fax: 408 - 872 -4159 307 sheldon @cnallp.com • www.cnallp.com / SARATOGA CITY COUNCIL MEETING DATE: November 20, 2013 AGENDA ITEM: DEPARTMENT: City Manager's Office PREPARED BY: Brian Babcock Administrative Analyst I SUBJECT: Spring 2014 Issue of The Saratogan RECOMMENDED ACTION: Accept report and direct staff accordingly. BACKGROUND: CITY MANAGER: Dave Anderson DIRECTOR: Dave Anderson The Saratogan is used as a tool to improve communications with residents and ensure the public has access to important information. The City has published a wide range of articles in past issues, ranging from public safety articles to water conservation tips to updates on City projects. Since the start of the 2010/11 budget, The Saratogan has been incorporated into the Saratoga Recreation Activity Guide to save the City money on mailing expenses. The Summer/Fall 2013 issue of The Saratogan was mailed to residents at the end of July and presented articles under the theme of "Saratoga is Safe." The newsletter featured articles on the Traffic Safety Commission, identity theft safety tips, and a story on the West Valley Clean Water Program. The newsletter also featured a profile on former Saratoga Mayor Done Wolfe, an update on the Village Enhancement Plan project, a reminder on recycling options, "Ask Our Staff' and upcoming community events calendar. Staff has come up with preliminary topics for the Spring 2014 issue of The Saratogan, which will be mailed to residents at the end of January 2014. Staff proposes the theme "Planning for the Future" along with the following articles: Primary article topics: • Saratoga Quarry Park • Safety Element, Noise Element, and Housing Element • New Community Development Department Counter Hours Secondary topics: • Arbor Day Event • Highway 9 Improvements • Library Commission • Ask Our Staff featuring Captain Ken Binder Page 1 of 2 1: 0 Upcoming Community Events Calendar To ensure that The Saratogan meets the expectations of the City Council, staff is seeking input for the spring issue. FISCAL IMPACTS: N/A CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS: Staff will move forward without Council input on the theme, article topics, or other aspects of the Spring issue of The Saratogan. ALTERNATIVE ACTION(S): N/A FOLLOW UP ACTION(S): Implement Council direction. ADVERTISING, NOTICING AND PUBLIC CONTACT: Pursuant to Government Code 54954.2, this item was properly posted as a City Council agenda item and was included in the packet made available on the City's web site in advance of the meeting. A copy of the agenda packet is also made available at the Saratoga Branch Library each Monday in advance of the Council meeting. ATTACHMENTS: Attachment A: The Saratogan 2013 Summer /Fall Issue Page 2 of 2 309 Traffic Safety Commission Paves Way Toward Safer Streets aratoga residents expect a safe community, and that includes the City's streets. But where are residents supposed to turn when they have an idea of how to make Saratoga's streets safer? All roads lead to the Traffic Safety Commission. With a mission to create safer streets and promote education regarding traffic, bicycle and pedestrian safety, the Commission provides a venue for the public to express concerns regarding traffic safety issues. Whether it's a concern with drivers speeding down a neighborhood road or a dangerous intersection, the Commission finds solutions to the problems Saratoga residents face in order to create a better quality of life in the City. New Raised Crosswalk Near Cox Avenue Sometimes the solutions are simple and straightforward, such as the call for the construction of a speed hump, or direct enforcement by Sheriff's deputies. the placement of a radar feedback sign But there are times when the situation calls for deeper study and larger projects to remedy a situation. Such was the case with the improved pedestrian crosswalk at Cox Avenue near the Quito Village Shopping Center. The project replaced a standard, painted crosswalk with in- pavement warning lights intended to increase pedestrian safety. A speed table was installed, raising the height of the street, making pedestrians more visible to drivers and creating a speed bump. The seven Commissioners, all appointed to their positions by the City Council, meet every other month to review and assess traffic concerns raised by residents. For more information on the Traffic Safety Commission, visit www.saratoga.ca.us /tsc. Reporting Traffic Safety Concerns 1. Send a detailed letter or email outlining your concerns to the Public Works Department. Send a letter to: City of Saratoga, Public Works, 13777 Fruitvale Ave., Saratoga, CA 95070. You can also email Mainini Cabute at mcabute@saratoga.ca.us. 2. If the safety concern is to be reviewed by the Traffic Safety Commission, it will be placed on the next available agenda and you will be notified as to the date, time and place. 3. Commissioners and a traffic engineer will review the submitted letter or email, visit the site and perform any studies needed. The traffic engineer will explain the review's findings at the scheduled meeting. 4. If immediate action is required, or the Commission recommends a simple solution, City staff will act on the request and the process will be concluded. If a solution is proposed that will affect a neighborhood, you may be asked to gather neighborhood support in order to continue the process. Additional time may be needed if it is determined that a larger project needs to go through the City's Capital Improvement Project process. What To Do When Ants Attack? Fight Back Without Harsh Chemicals Have you ever woken up to find that ants have invaded your kitchen? Studies show that West Valley residents have trouble with ants during summer droughts and winter rainstorms. When this happens, people often end up using strong pesticides. Although some of the stronger pesticides have been banned, substitute pesticides are still showing up in waterways at levels that can harm aquatic life. The good news is that there are ways to control ants without using these toxic chemicals. Here's a quick and safe fix for your next ant emergency: • Find out what the ants are after (usually food) and where they're getting into the house. • Before removing food that's attracting the ants, clean up lines of ants with soapy water, vinegar or cleaning spray. Wipe the area well to destroy the "scent trails" that ants leave for their nest -mates to follow. • Block their entry point temporarily with a smear of petroleum jelly or piece of tape. Use silicon caulk to permanently close entry points. • Place a bait station along the ant trail. Remove the bait station when the ants have disappeared so you don't attract more ants into the house. '. R Gat /mot u1 ', rl'v + IMAR> - ,,. coin [min ANO AM196 1. f P -° I CgIs .4 r3 A "Shelf Talker" Fact Sheets For more information, and fact sheets on ants and other pests, visit www.mywatershedwatch.org. Fact sheets can also be picked up at local garden and hardware stores participating in the "Our Water, Our World" program. While visiting the stores, look for a "shelf talker" label, which highlights less toxic products. Local participating stores include: Orchard Supply Hardware, 5365 Prospect Road in San Jose; Summer Winds Nursery, 1491 S. DeAnza Blvd., and Yamagami's Nursery, 1361 S. DeAnza Blvd., in Cupertino; and Ace Hardware, 15300 Los Gatos Blvd. in Los Gatos. Keep Your Identity Safe With These Tips from Captain Ken Binder aratoga is one of the safest cities in the Bay Area and residents are very good at doing their part to keep trouble at bay. Although identity theft statistics are relatively low in Saratoga compared to national numbers, below are some tips for residents from the Sheriff's Office to further prevent identity theft: • Don't carry your social security card in your wallet. • Don't give out personal information to banks, stores or government agencies —or those pretending to be —over the phone or through email unless you've made contact first. • Shred or tear up papers with personal information before you throw them away. • Protect your personal information on your home computer by using strong passwords with at least eight characters, including a combination of letters, numbers and symbols. Use firewall, virus and spyware protection software that you update regularly. • Open your credit card bills and bank statements right away, and check carefully for any unauthorized charges or withdrawals and report them immediately. • Ask questions whenever you are asked for personal information that seems inappropriate for the transaction. Ask how the information will be used, if it will be shared and how it will be protected. If you're not satisfied with the answers, consider going somewhere else. • Monitor your credit history by requesting one free credit report each year from each of the three national credit bureaus: Equifax, Experian and TransUnion. Y f Former Saratoga Mayor Don Wolfe Giving Back to His Community Former Saratoga Mayor and longtime resident Don Wolfe spent much of his time giving back to the community that he loved. He volunteered for non- profits, was an elected official and lectured at local schools. Don passed away on June 18. He was 79. Don was sworn in as a Councilman on June 28, 1994, alongside fellow residents Paul Jacobs and Gillian Moran. All would become Mayors, with Don taking his seat as Mayor on December 3, 1997. His term as a Councilman and Mayor ended on December 1, 1998. He was appointed to the City's Planning Commission before being elected to the Council. After serving his term as Mayor, Don was then elected to the West Valley- Mission Community College District's Board of Trustees. He also served on Goodwill Industries of Silicon Valley's Board of Directors, co- hosted the community television program Issues Today and served as president of his parish's council. More Safety and Beautification Upgrades Coming To The Village The City of Saratoga is always attempting to improve its infrastructure in order to create a safer, more aesthetically pleasing and healthier community. And that's just what the current Village Pedestrian Enhancement Plan project aims to bring to Saratoga. The first phase of construction began in June 2010 and added pedestrian bulb -outs, enhanced crosswalks, bicycle racks and benches near Third and Fourth Streets. This phase will include similar improvements near the Highway 9 Spur and Fifth Street. Construction for the second phase is expected to begin this fall with a break during the holiday season. This phase also includes the addition of way - finding signs, which will point visitors to some of Saratoga's most note - worthy destinations, such as the History Museum, Hakone Gardens and Villa Montalvo. Additionally, the project will upgrade Blaney Plaza. There will be a new parking stall put in at the plaza, decorative concrete paving at the street, landscaping, wood -split rail fence at the north section of the plaza, new enhanced light poles and upgraded the electrical infrastructure. Funding will come from a $776,100 Federal grant and $315,666 in matching funds from the City. These improvements make pedestrians more visible to drivers and consequently make the Village a safer place to walk. The upgrades also enhance a guest's experience, with the addition of directional signage, benches and other visual improvements. Overall, the project will increase the walkability of the Village. Upcpmins . Community. ........ ....... • Sun., Aug. 11th Foodie Fun on the Run 4 p.m. at Alameda Family Funeral • Fri., Aug. 16th Saratoga at the Movies 8 p.m. at El Quito Park • Sun., Aug. 18th Bollywood Dance Party 5 p.m. to 8 p.m. at Big Basin Way • Sat., Sept. 28th Heritage Day 12 p.m. to 3 p.m. at Big Basin Way Recycle Used Household Alkaline Batteries and "Pre- Kitchen" Fruits and Vegetables ecycling has become second nature to Saratoga residents. Plastics, paper, glass and yard clippings are just a few examples of what no longer need to be sent to landfills. Now residents have the option to recycle household batteries curbside through West Valley Collection and Recycling. Residents are asked to place used household alkaline batteries in a clear, sealed plastic bag on the top of their recycling carts. "Pre- kitchen" fruits and vegetables, meaning those from your garden or orchard, can now be placed in the yard trimmings carts. Examples of pre- kitchen items include apples that drop on the ground from a tree in or tomatoes that are still on the plant when they're pulled out of the ground. For more information, visit www.westvalleyrecycles.com. Ask... Our. Staff ............................ ............................... Have a question? Send your question(s) to bbabcock @saratoga.ca.us or (408) 868 -1275. Dear City Staff, I heard that the City is in the process of creating a vision for the Saratoga Quarry Park. I was wondering how I could get involved? Quarry Loving Quincy pear Quincy, thank you for your interest. phe City is working on a Master Plan for the property and is Jeeking resident input. The first Community workshop was held in July. There will be a second worshop in September. Visit www. sara toga. ca. us/ quarry for more information. Iveta Harvancik, Senior Engineer Dear City Staff, I've noticed some people allowing their dogs to roam off -leash in Saratoga. Are dogs allowed off -leash in the City? Barking Mad Bobby Pear Bobby, Flo, dogs are not allowed off - leash in the City. Dogs must be �ept on a leash that is no more khan 6 feet in length. The City contracts its animal control services with San Jose Animal Care and Services. If you see a dog off- leash, contact them at 408.794.72 97. James Lindsay, Community Development Director °`SARA° To learn more about The Saratogan, make comments, suggest story ideas, or include events in the 9 Events section, contact Brian Babcock at bbabcock@saratoga.ca.us or 408.868.1275. You can also FOaN,P find The Saratogan online and sign up for email alerts at www.saratoga.ca.us /saratogan.