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2015-012 - Validate Commission Appointments Public Use of Town Equipment & Signs at Meetings, Council & Employee Use of Tablets for Digital Agenda Packets, Traffic Impact Policy, General Fund Reserve & GASB 54 Fund Balance PoliciesRESOLUTION 2015 -012 RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS VALIDATING THE COMMISSION APPOINTMENTS; PUBLIC USE OF TOWN EQUIPMENT AND SIGNS AT TOWN COUNCIL AND PLANNING COMMISSION MEETINGS; TOWN COUNCIL, PLANNING COMMISSION AND EMPLOYEE USE OF TABLETS FOR DIGITAL AGENDA PACKETS; TRAFFIC IMPACT POLICY; GENERAL FUND RESERVE POLICY, AND GASB 54 FUND BALANCE POLICY WHEREAS, the Town Council is responsible for establishing municipal policies that provide clear direction for process and procedures by which the Council and staff shall conduct business and activities; and WHEREAS, examples of these policies include the Town Code, Town Council Policies, General Plan, Design Guidelines, and Area Plans; and WHEREAS, the many benefits of having established policies includes greater consistency as well as more government transparency and accessibility by the public, the Council and staff; and WHEREAS, the Policy Committee reviewed six Council Policies recommended for validation at its February 11, 2015 meeting: Commission Appointments; Public Use of Town Equipment and Signs at Town Council and Planning Commission Meetings; Town Council, Planning Commission and Employee Use of Tablets for Digital Agenda Packets; Traffic Impact Policy; General Fund Reserve Policy, and GASB 54 Fund Balance Policy; and WHEREAS, these Council Policies are deemed current as they have either recently been revised or adopted by the Town Council. NOW, THEREFORE, BE IT RESOLVED THAT, the Town Council of the TOWN OF LOS GATOS does hereby validate the Commission Appointments; Public Use of Town Equipment and Signs at Town Council and Planning Commission Meetings; Town Council, Planning Commission and Employee Use of Tablets for Digital Agenda Packets; Traffic Impact Policy; General Fund Reserve Policy; and GASB 54 Fund Balance Policy Council Policies attached hereto as Exhibit A. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California on the 3d day of March, 2015 by the following vote: COUNCIL MEMBERS: AYES: Steve Leonardis, Rob Rennie, Marico Sayoc, Barbara Spector, Mayor Marcia Jensen NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA ATTEST: CLERK. ADMINISTRATOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA Title: Commission Appointments Date: 2/28 190 Enabling PURPOSE Revised Date: Pages: 4 To establish a policy to encourage participation by the Town's residents on Town Boards, Commissions and Committees (hereinafter referred to as "Commissions "). The Town will encourage residents to participate on Commissions by advertising vacancies on Commissions for at least 30 days, preparing easily understood applications, maintaining clear descriptions of the role of each Commission and Commissioners /Committee and Board Members (Commission members), and conducting public interviews of all Commission applicants, except as provided for in this Policy. SCOPE This Policy applies to all applicants to Town Boards, Commissions and Committees. POLICY The Town Council encourages public participation in all decision malting. To be successful in achieving public participation, residents must be assured that the participation is meaningful and that their input will be valued. The widest representation from the community can only be achieved if vacancies are well advertised so that anyone interested will have the opportunity to apply. Public interviewing of the applicants by the Town Council demonstrates that the Council values these appointments and that everyone has an equal opportunity to be appointed. To ensure the greatest possible participation by the public, it is the Town's policy that no person shall be appointed to more than one Commission except in those cases where they are ex- officio members of other Boards, Commissions and Committees. This Policy does not apply to Commission members serving as representatives of their Commission on joint committees such as the Conceptual Development Advisory Committee and the General Plan Committee. EXHIBIT A Page: Policy Number: Title: Commission Appointments 2 of a 2 -11 PROCEDURES The following procedures will be followed by the applicant, the Town Clerk Administrator and the Town Council for the appointment of applicants to Town Commissions: Responsibility and Actions: Town Clerk Administrator A. Annual Recruitments Commission members' terms begin on January 1, with the exception of the Student Commissioners, whose terms begin on September 1. The Town Clerk Administrator shall perform the following duties in conducting an annual recruitment for Commission members: Notify Town Council of vacancies on Commissions by indicating the names of the Commissions, the number of terms expiring or being vacated, names of individual(s) with expiring terms or vacating seats, advertising periods (at least 30 days) and the recommended date of interview. 2. Advertise the vacancies, including the application deadline and the interview date, which shall be set for the second Town Council meeting in December. Prepare and maintain easily understood applications for appointment to Commissions. Applications shall include the following policy information: a. Prior to initial appointment to any Commission, non - incumbent applicants must be interviewed by the Town Council. The applications of those not appearing will be held for the next recruitment. b. If an incumbent is requesting reappointment to a Town Commission, the incumbent will be re- interviewed, or must submit a letter for distribution to the Council prior to the interviews, describing the reason why the applicant cannot be present for an interview and why the applicant should be reappointed to the Commission. Incumbent interviews by telephone may be considered under extraordinary circumstances. c. Submissions deadlines are mandatory; no exceptions are permitted. d. Applicants may apply to multiple Commissions, and will only be considered for those Commissions to which they apply. Applicants applying for more than one Commission will only be interviewed once. 4. Applicants a. For adult applicants — Accept applications, verify eligibility, and distribute copies of the applications of eligible applicants to the Town Council prior to the interviews for appointment. Title: Commission Appointments Page: Policy 3 of 4 1 2 -11 b. For student applicants —Accept applications, verify eligibility, and distribute copies of the applications of eligible applicants to the Town Council Selection Committee prior to the interviews for appointment. 5. Notify the applicant by letter or email as to the date and time of the interview. 6. Facilitate the Council voting process by informing Council as to how many votes are possible on each Commission, calling out applicants' names, and identifying the applicants receiving sufficient votes for appointment. This process does not apply to student applicants. 7. Applicants a. For adult applicants — After the interviews and Council vote are completed, notify all applicants of the Council's action, and explain Town policy of keeping application active for one year with notification of subsequent openings on that Commission to the interested applicants. b. For student applicants —After the interviews are completed, notify all applicants of the Council Committee's action, and prepare a staff report for the Town Council to ratify the Committee's appointment at an official Town Council meeting. B. Mid -Term Recruitments During the year, Commissions may experience vacancies that drop the number of filled seats to a number of members that is not sufficient to conduct Commission business. The Commission may request the Town to conduct a mid -term recruitment to fill seats. To the extent possible, the Town Clerk Administrator will consolidate mid -term recruitments to minimize the number of recruitments occurring though the year. In the event of a vacancy on the Planning Commission, the Town will automatically conduct a mid -term recruitment. Mid -term recruitments will not be conducted for student commissioners. The Town Clerk Administrator shall advertise mid -term vacancies on Commissions for at least 15 days. Responsibility and Action: Applicant 1. Complete and submit to the Town Clerk Administrator the application for appointment to a Town Commission. 2. For adult applicants: Attend the Council meeting to be interviewed for Commission appointment For student applicants: Attend the Council Selection Committee interview session. 3. If a Commission member is requesting reappointment to a Town Commission and cannot be present for the interview, submit a letter to the Town Clerk Administrator by Friday Title: Commission Appointments Page: Poll 4 of 4 2 -11 prior to the interview, describing why applicant cannot be present for the interview and why the applicant should be reappointed to the Commission. 4. If appointed, prior to starting the Commission term, see Town Clerk Administrator to take "Oath of Office" and file any documents required by the Fair Political Practices Commission. 5. Attend Commission meetings once term begins. 6. Read the Commissioner Handbook. Responsibility and Action: Town Council 1. Review applications. 2. For adult applicants — Interview applicants at a public meeting. For student applicants — Town Council Selection Committee interviews applicants. 3. Determine if the incumbents not in attendance and having submitted a letter pursuant to this Policy should be considered for reappointment. 4. If there are limited applications for any vacancy to a Town Commission, the Mayor, on behalf of the Council, may request that the Town Clerk Administrator re- advertise the vacancy, reschedule the interviews, and notify all applicants of the new interview date. APPROVED AS TO FORM: Robert Schultz, Town Attorney Title: Public Use of Town Equipment and Signs at Town Council and Policy Number: 2 -13 Planning Commission Meetings Effective Date: 4/21/14 Revised Dates: Approved: SUMMARY This policy sets requirements for audio /visual presentations and the display of signs and other symbolic material by the public at Town Council and Planning Commission meetings. PURPOSE The purpose of this Policy is to establish procedures for public presentations using audio /visual equipment at Town Council and Planning Commission meetings in a manner that allows the public to present information, while ensuring that meetings progress smoothly and that Town information systems are protected. This Policy also establishes requirements related to the display of signs, posters, and other symbolic materials by members of the audience to ensure that such displays do not impede ingress, egress, or visibility in the meeting area. SCOPE This Policy applies to anyone making a presentation to the Town Council or Planning Commission using audio /visual equipment for all agenda items, including Verbal Communications. For this Policy, "Audio /visual presentation" refers to video, PowerPoint, music, or other digital formats presented on an electronic device, and not photographs and documents displayed on an overhead projector. With regard to signs and other symbolic materials, this Policy applies to all members of the public attending a Town Council or Planning Commission meeting. Title: Public Use of Town Equipment and Signs at Town Council Page: Policy Number: and Planning Commission Meetings 1 2 of 4 1 2 -13 POLICY AND PROCEDURES 1. General Guidelines a. Audio /visual presentations are permitted on all agenda items, including Verbal Communications. b. Public presentations using audio /visual equipment or material shall comply with the time limits set by the Mayor or Chair for public comment. The time limit will include set -up of the equipment or material. c. The Town will provide a dedicated electronic device for audio /visual presentations by the public at Town Council and Planning Commission meetings. For security reasons, the electronic device will not be connected to the Town's information systems or the Internet. Members of the public are not permitted to connect their own electronic devices to the Town's audio /visual equipment. d. The Town will provide an overhead projector for the display of photographs and documents. e. The Town is not responsible for damage to audio /visual presentations submitted by the public. f. For maps and large freestanding displays, presenters should bring their own easels and inform the Clerk Administrator or staff liaison prior to the start of the meeting. 2. Notification, Submission and Review Requirements a. Persons wishing to make an audio /visual presentation on any agenda item, including Verbal Communications, at a Town Council or Planning Commission meeting must submit their presentation electronically, or on a flash drive or DVD to the Clerk's Office or staff liaison by no later than 3:00 p.m. on the day of the meeting. Any audio /visual materials not submitted by the time specified in this Policy will not be displayed on or through the use of Town equipment. b. The Clerk's Office or the Town department responsible for the related agenda item will confirm the compatibility of the digital format with the Town's equipment, and will notify the appropriate individual within two hours of submission if the material is not compatible with the Town's equipment. The Clerk Administrator or staff liaison will load the material on the Town's dedicated electronic device prior to the start of the meeting, and will activate the device for the presenter. The material must be queued at the point where the speaker would like it to begin. If making a PowerPoint presentation, the speaker should advise staff if the presentation contains audio or animation. The presenter may use the Town's remote control to run the presentation. Title: Public Use of Town Equipment and Signs at and Planning Commission Meetings Policy Number: 2 -13 c. Audio /visual presentations become a part of the Council administrative record or Planning Commission record. If the presentation is provided on a flash drive or DVD, the Town will retain the data storage medium unless the presenter requests it to be returned. The presenter must pick up the data storage medium from the Clerk or Planning Commission staff within two weeks from the date of the meeting at which it was presented. d. Persons wishing to use the overhead projector to display photographs /documents under Verbal Communications or any agenda item are encouraged to notify the Clerk Administrator or staff liaison prior to the start of the Town Council or Planning Commission meeting. Any photographs /documents displayed on the overhead projector become a part of the administrative record and the material or a copy of the material must be retained by the Town. e. Any member of the public may bring to a meeting printed materials regarding an agenda item for consideration by the Town Council or Planning Commission. If the material can be displayed on the overhead projector, section 2d of this Policy applies. If the material cannot be displayed on the overhead projector, and the member of the public wishes the Town Council or Planning Commission to receive a copy of the material, it is requested that the speaker provide a minimum of eight (8) copies to allow the Council or Commission, Clerk, key staff, persons directly affiliated with the agenda item, and the general public to review the material. The Brown Act requires equal access to all materials considered in a public meeting to ensure fairness and transparency. f. Persons wishing to submit materials when speaking under Verbal Communications must submit one (1) copy for the administrative record. The Town Council or Planning Commission cannot take action regarding matters raised during Verbal Communications. 3. Signs and Other Symbolic Materials a. Symbolic materials, such assigns, posters, banners, etc., will be allowed in the Council Chambers with the following limitations: • Not larger than 18 inches by 24 inches. • No sticks, posts, poles or other such items shall be attached to the signs or other symbolic materials. • The items cannot create a building maintenance problem (such as confetti) or a fire or safety hazard. b. Members of the public with signs and other symbolic materials must not raise the items above shoulder level (whether seated or speaking from the podium), obstruct the view of other attendees or the Council or the passage of other attendees, or otherwise disturb the business of the meeting. Title: Public Use of Town Equipment and Signs at Town Council Page: Polk and Planning Commission Meetings 4 1 2 -13 APPROVED AS TO FORM: Robert Schultz, Town Attorney Title: Town Council, Planning Commission and Employee Use of Policy Number: 2 -14 Tablets for Digital Agenda Packets Effective Date: 4/21/14 Enabling Approved: PURPOSE Revised Dates: Use of electronic media enhances communication and the efficient performance of Town duties, and thereby improves service to the public. The use of electronic media also reduces paper and photocopying costs. The purpose of this Policy is to provide guidelines for Town Council, Planning Commission members and employee use of electronic tablets during meetings subject to the Brown Act, and at such other times as may be deemed necessary for the conduct of Town business. SCOPE This Policy applies to Town Council members, Planning Commission members and employees when using Town - issued devices or personal devices for Town business. POLICY AND PROCEDURES 1. Authorized Users a. The Town Council and Planning Commission members and designated Town staff are hereinafter referred to as AUTHORIZED USERS. Town Council and Planning Commission members may self - select to participate in the electronic tablet program. The Town Manager will designate Town staff eligible to receive Town - issued electronic devices and/or compensation for use of personal electronic devices under this Policy. b. The Town will no longer provide paper meeting packets to Authorized Users who elect to participate in the electronic tablet program, unless the Authorized User so requests. c. The explicit privileges and restrictions set forth in this Policy do not attempt to cover every situation that may arise in connection with the use of this form of electronic communication. AUTHORIZED USERS acknowledge, understand and respect the underlying guidelines that form the basis of this Policy. Title: Town Council, Planning Commission and of Tablets for Digital Agenda Packets 2 -14 d. Before being authorized to utilize an electronic tablet for Town business, AUTHORIZED USERS shall sign the Electronic Tablet Agreement acknowledging understanding of and compliance with this Policy. 2. Electronic Tablet Options a. AUTHORIZED USERS have the option of using a Town - provided electronic tablet or a personal electronic tablet for the conduct of Town business. b. The Town will provide a tablet and a case to AUTHORIZED USERS who elect to use a Town - provided tablet. Additional accessories, such as keyboards, screen protectors, cables, etc. may be authorized by the Town contingent on need and available funding. All property purchased by the Town shall be returned to the Town at the end of the AUTHORIZED USER'S term or at the end of employment. c. If an AUTHORIZED USER elects to use a personal electronic tablet for the conduct of Town business, the Town will reimburse the AUTHORIZED USER for the cost of any software necessary to conduct Town business and for a portion of a cellular data plan as described below. The Town does not accept responsibility for malfunctions of personal electronic tablets or the inability of Town - purchased software to work on these devices. Any Town - provided software or applications on personal electronic tablets shall be de- installed at the end of the AUTHORIZED USER'S term or at the end of employment, or the AUTHORIZED USER may reimburse the Town for such software or applications. 3. Software, Data Plan and Security a. AUTHORIZED USERS will be provided with or reimbursed for the applications needed to conduct Town business. Town - provided tablets will be WiFi enabled. The Town may subscribe to a cellular data plan for tablets issued to AUTHORIZED USERS to allow access to Town information when WiFi is not available. The Town's Information Services Manager will determine the data plan and allowable usage. The Town may provide a stipend to AUTHORIZED USERS using their own electronic tablets for Town business to cover a portion of a cellular data plan as needed. c. The software and applications installed by or reimbursed by the Town must remain on the electronic tablet in usable condition and be readily accessible at all times. From time to time, the Town may add or upgrade software applications for use by AUTHORIZED USERS such that AUTHORIZED USERS may be required to check -in their tablet with the Information Services Department for periodic updates and syncing. Any software, e-mail messages or files downloaded via the Internet or otherwise into the Town- issued electronic tablet become the property of the Town, Title: Town Council, Planning Comm of Tablets for Digital Agenda Packets 2 -14 and may only be used in ways that are consistent with applicable licenses, trademarks or copyrights. d. Files from sources that AUTHORIZED USERS may have any reason to believe may be untrustworthy shall not be downloaded, nor shall files attached to e-mail transmissions be opened and read unless the AUTHORIZED USER has knowledge that they originate from a trustworthy source. Downloaded files and attachments may contain viruses or hostile applications that could damage the Town's information systems. e. If technical difficulties occur or illegal software is discovered, the electronic tablet will be restored to its original settings. The Town does not accept responsibility for the loss of any software or documents deleted due to a restoration. f. Town - issued electronic tablets will be password protected and used only by the AUTHORIZED USER. Passwords should be kept confidential and not shared with anyone, including family members. The password will be a minimum of eight (8) characters in length and contain at least one number, one letter, and one uppercase letter. 4. Care of Town - Issued Equipment a. AUTHORIZED USERS are responsible for the general care of the Town - issued electronic tablet. Tablets that are broken or fail to work properly must be taken to the Information Services Department for an evaluation of the equipment. Electronic tablets must remain free of any writing, drawing, stickers or labels that are not the property of the Town. Only a clean, soft cloth should be used to clean the screen. b. AUTHORIZED USERS maybe responsible for payment of the deductible for repair or replacement if such damage was due to negligence or misuse. After a second occurrence of damage, AUTHORIZED USERS are solely responsible for reimbursing the Town for the fair market value of the repair or replacement. c. AUTHORIZED USERS must report immediately to the Information Services Department if the tablet is lost or stolen. If, due to AUTHORIZED USER'S misuse or neglect, the tablet is stolen or lost, the AUTHORIZED USER shall pay the full replacement value. 5. Use of Electronic Tablets a. The electronic tablet, Internet and e-mail access provided are tools for conducting Town business. Thus, the use of such tools by AUTHORIZED USERS will be solely for Town business purposes, (i.e., to review agenda materials, obtain information for Town- related business and conduct Town business communications as appropriate). All of the Town's computer systems, including the electronic tablet, are considered to be public property. All Town - related documents, files and e-mail messages created, Title: Town Council, Planning Commission and Employee Use Page: Policy of Tablets for Digital Agenda Packets 1 4 of 5 2 -14 received, stored in, or sent from any Town - issued tablet or from any personal tablet used for Town business are considered public records, subject to disclosure to the public pursuant to the California Public Records Act, Govt. Code §§ 6250- 6276.48, and are considered the property of the Town of Los Gatos. b. All existing Town policies will continue to apply to the conduct of AUTHORIZED USERS on the Internet and in the use of e-mail, including, but not limited to, those that deal with the misuse of Town resources, sexual harassment, electronic communications, information and data security, and confidentiality. During Council or Planning Commission meetings, AUTHORIZED USERS shall use electronic tablets and all electronic devices solely for the purpose of accessing the current meeting packet and are prohibited from using electronic tablets or any electronic device to send or exchange facts about or engage in discussions regarding Town issues via electronic communication, including e-mail, instant messaging, text messaging, twitter feeds or similar forms of electronic communications with any other Council or Planning Commission member, staff or member of the public. AUTHORIZED USERS shall not use the electronic tablet or any electronic device in any way as to violate the public meeting requirements of the Brown Act and the California Public Records Act. Town staff is authorized in limited circumstances to use electronic devices to access additional information concerning issues raised at the meeting. c AUTHORIZED USERS shall not use Town- issued electronic tablets for operating a business for personal gain, sending chain letters, soliciting money for religious or political causes, or any other purpose that interferes with normal Town business activities. 6. Compliance with this Policy a. There is no expectation of privacy with respect to the use of an electronic tablet for Town business. The Town reserves the right to inspect any and all files stored on electronic tablets that are the property of the Town in order to ensure compliance with this Policy. AUTHORIZED USERS do not have any personal privacy right in any matter created, received, stored in or sent from any Town - issued tablet. AUTHORIZED USERS using a personal tablet for Town business do not have any personal privacy right in any Town - related matter created, received, stored in or sent from the personal tablet used for Town business. b. Any violation of any provision of this Policy may constitute official misconduct and grounds for discipline, including, but not limited to, discontinuance of the privilege of using a Town - issued electronic tablet. TOWN OF LOS GATOS ELECTRONIC TABLET AGREEMENT Title: Town Council, Planning Comm of Tablets for Digital Agenda Packets Policy Number: 2 -14 I, , the undersigned AUTHORIZED USER of the Town of Los Gatos, have been provided a copy of the Town of Los Gatos Electronic Tablet Policy and understand its contents fully. I accept and understand the terms of the policy and agree to abide by all terms contained in it. Signature Printed Name Position APPROVED AS TO FORM: Robert Schultz, Town Attorney Title: Traffic Impact Policy Effective Date: Actions: 1991 -174, 2014 -59 Approved: I. DEFINITIONS Policy Number: 3 -2 Pages: 1. Average Daily Trips. Average Daily Trips (ADT) are the total number of trips, both in- bound and outbound, within a 24 hour weekday period, generated by a particular use or development. 2. Pass -By Trip. Trips generated by the proposed Project that would be attracted from traffic passing the proposed Project site on an adjacent street that contains direct access to the Project. 3. Peak Hour Trip. Peak Hour Trips are vehicle trips, both in -bound and out - bound, occurring during a one hour period either during the A.M Peak (7 a.m. to 9 a.m.) or the P.M. Peak (4 p.m. to 6 p.m.), generated by a particular use or Project. 4. Project. A project subject to this Policy encompasses all land use development projects affecting the built environment, including changes in occupancy or intensification or existing uses, over which the Town has administrative or legislative authority, that require review and approval and issuance of a build permit, certificate of use or occupancy, or other land use approval by Town staff, Commissions, or Town Council. 5. Specialty Retail. Specialty Retail uses are defined as walk -in and impulse businesses such as juice bars, yogurt shops, coffee shops, donut shops, and similar uses which do not generally serve meals and have limited or no seating. Specialty Retail uses are defined under this Policy for purposes of establishing trip generation data, and this definition does not provide any land use or zoning guidance. II. GENERAL CONDITIONS AND APPLICABILITY 1. This Policy is intended to provide guidance to Town staff and the development community in implementing the provisions of the Town Municipal Code, Chapter 15, Article VII, and Traffic Impact Mitigation Fees. 2. Projects that are determined by the Town to generate one or more new net Average Daily Trips are subject to this Policy. Tittle: Traffic Impact Policy 3 -2 3. Projects that will generate 20 or more new Peak Hour Trips shall be required to complete a comprehensive traffic impact analysis report as described in more detail in Section VI Traffic Impact Mitigation Report. 4. Consistent with Transportation Impact Analysis (TIA) Guidelines adopted by the Santa Clara County Transportation Authority (VTA) Congestion Management Program, Pass - by Trips shall not be considered in calculating the 20 new Peak Hour Trip threshold that triggers the requirement for conducting a comprehensive traffic impact analysis report. 5. In order to determine how much new traffic a Project will generate, the Town will use applicable trip generation rates and pass -by trip data from the most recent edition of the Institute of Traffic Engineers (ITE) Trip Generation Manual. Alternatively, trip generation rates from the following resources may be used if determined by the Town to be more appropriate than the available ITE rates: San Diego Association of Governments (SanDAG); California Department of Transportation (Caltrans); or the City of San Jose. A Town - sponsored or peer- reviewed traffic study may also be used to determine trip generation rates. III. TRAFFIC IMPACT MITIGATION FEES 1. All projects that generate one or more new Average Daily Trips are required to pay Traffic Impact Mitigation Fees. 2. All required Traffic Impact Mitigation Fees shall be paid in full to the Town in association with and prior to issuance of a building permit. If no building permit is required, the fee shall be paid in full prior to issuance of a certificate of use and occupancy, or similar entitlement. The amount due shall be calculated based on the fee in place as approved by the Town Council by resolution at the time the fee is paid. 3. The per trip amount of the fee shall be set forth by the Town Council by resolution, pursuant to Town Municipal Code, Chapter 15, Article VII, Traffic Impact Mitigation Fees. 4. Fees shall be calculated by multiplying net new ADT by the per trip amount in the place at the time the fees are paid. ADT shall be determined by using the applicable trip generation rate and pass -by trip data from the most recent edition of the Institute of Traffic Engineers (ITE) Trip Generation Manual. When a use is not listed in the ITE Trip Generation Manual or where ADT data is not available, the Town Traffic Engineer shall use available Peak Hour Trip data or select the most appropriate trip generation rate and pass -by trip classification for use in calculating ADT. Trip generation rates from alternate sources may be used if determined by the Town Traffic Engineer to be more appropriate than the available ITE rates. Examples of alternate sources of data include: San Diego Title: Traffic Impact Policy Page: Policy Number: 3 of 5 1 3 -2 Association of Governments (SanDAG); California Department of Transportation (Caltrans); City of San Jose; comparable store/business traffic studies. IV. CREDIT FOR EXISTING TRIPS 1. In calculating new Peak Hour Trips for purposes of determining whether or not a traffic impact analysis report is required pursuant to this Policy, trip credit shall be granted for an existing use or the most recent former use within the past five years prior to submission of a Project application. 2. In calculating new Average Daily Trips for purposes of determining the amount of the Traffic Impact Mitigation Fee due, trip credit shall be granted for an existing use or the most recent former use within the past five years prior to submission of a Project application. 3. Where the property is vacant, the most recent and former use within the past five years prior to submission of a Project application shall be used. If the property has been vacant for more than five years, no credit shall be given. Vacancy for purposes of Fee Credit shall include any vacant or unoccupied property, structure or building where no active, approved use is currently present. 4. Where a portion of the space is changing use, credit will apply to the proportionate square footage of the space under review. 5. Where the change in use results in fewer trips than the existing or former use, no credit or refund will be due the applicant. V. CREDIT FOR TRAFFIC MITIGATION IMPROVEMENTS 1. Credit against Traffic Impact Mitigation Fees due shall be granted up to the amount of the Estimated Project Cost shown on Attachment 1, Town of Los Gatos Traffic Mitigation Improvements Project List, for any listed projects for which the developer, as a condition of approval, is required to either construct at the developer's sole cost, or contribute a fixed or percentage amount of funding toward future construction of the listed improvement. Where construction is fully funded and completed by the developer, said credit shall be equal to the Project Cost as shown in Attachment 1. Where payment is a fixed amount or a percentage of the Project Cost, credit shall be equal to the actual amount due, whether the Project is constructed by the developer or others. 2. No credit shall be given for any public right -of -way dedication required for completion of projects listed on Attachment 1. Credit will be given on a case -by -case basis and shall not exceed the impact fee payable. Any request for credit shall be made prior to the payment of the Traffic Impact Title: Traffic Impact Policy Page: Policy Number: 4 1 3 -2 Mitigation Fees. No credit shall be given for installation of Town - standard frontage improvements, Project access improvements, or internal circulation improvements. 4. Credit shall only be granted for payment of costs or construction of projects listed in Attachment 1, unless otherwise approved by the Town Council. VI. TRAFFIC IMPACT ANALYSIS REPORT Traffic impact analysis reports required pursuant to this Policy shall be prepared consistent with the Transportation Impact Analysis (TIA) Guidelines adopted by the Santa Clara County Transportation Authority (VTA) Congestion Management Program (August 2009), or as such Guidelines may be amended or updated from time to time, except that the threshold for preparation of a traffic report under this Policy is 20 new Peak Hour trips, whereas the VTA TIA threshold is 100 new Peak Hour Trips. 2. Traffic impact analysis reports shall be funded in full by the Project applicant. Project applicants shall deposit fund with the Town in an amount deemed necessary to cover the cost of an independent consultant report, plus staff administrative and review costs. Following deposit of funds, the Town will hire a professional transportation consultant to complete the required study. Alternatively, the Project applicant may hire his /her own professional engineering or transportation consultant to complete a traffic study, in which case the applicant must deposit with the Town sufficient funds for the Town to hire a professional firm to conduct a peer review of the applicant - prepared traffic report, plus cover for administrative staff and review costs. 3. The Town shall conduct an open, competitive process to establish a list of firms which are qualified to prepare traffic reports and /or conduct peer review of traffic studies under contract to the Town. The list of firms shall be selected in accordance with the Town's Purchasing Policy. A new list shall be created at a minimum of once every five years. VII. OTHER PROVISIONS The Institute of Traffic Engineers (ITE) Trip Generation Manual trip generation rates for Specialty Retail Center shall apply to all Specialty Retail uses as defined in this Policy. 2. A secondary dwelling unit with a floor area of six hundred square feet or less shall be exempt from this Policy. 3. The Town Council may exempt housing development for very low, low to moderate income residents (as defined by Town Ordinance, General Plan, or statute) from all or a portion of the Traffic Impact Mitigation Fee upon making a finding that the development Title: Traffic Impact Policy Page: Policy Number: 5 of 5 1 3 -2 provides a significant community benefit by meeting current needs for affordable housing. APPROVED AS TO FORM: Robert Schultz, Town Attorney Title: General Fund Reserve Policy I Policy Number 4 -4 Date: 5/6/11 1 Pages: 3 Enabling Actions: I Revised Dates: BACKGROUND General Fund reserves are classified into two categories: Restricted and Designated. Restricted reserves are those which are restricted and not considered available due to financial, accounting, or legal restrictions. Designated reserves are established by Council policy for an intended purpose and are available for use per Council direction. GUIDING PRINCIPLES Following sound financial practices and adhering to the Government Finance Officers' of American (GFOA) recommendations, the Town's designated reserves include reserves for known and unknown contingencies, which take into consideration the: 1. Diversity of revenue base 2. Volatility of revenue structure 3. Changes in political environment 4. Frequency of operating surpluses /deficits 5. Cash flow management practices PURPOSE The purpose of this policy is to establish a target minimum level of designated reserves in the General Fund to: 1. Reduce the financial impacts associated with a disaster or catastrophic event; 2. Respond to the challenges of a changing economic environment, including prolonged downturns in the local, state, or national economy; and 3. Demonstrate continued prudent fiscal management and creditworthiness. Page: Policy Number: Title: General Fund Reserve Policy 2 of 3 4 -4 POLICY Reserve Level The Town currently sets aside funds into three key designated reserves to address unforeseen emergencies or disasters, significant changes in the economic environment, and key infrastructure and capital projects. These include the Catastrophic Reserve, Budget Stabilization Reserve, and Capital and Special Projects Reserve. The Town commits to maintaining these reserves at a minimum of 25% of General Fund ongoing operating expenditures (minus one -time expenditures), equally divided between the Catastrophic Reserve (12.5 %) and Budget Stabilization Reserve (12.5 %), excluding the Capital and Special Projects Reserve. The General Fund Reserve Policy is to be reviewed by the Town Council as part of the annual operating budget review and adoption process. Appropriations of General Fund reserves require formal Council authorization. Should a catastrophic disaster or loss of the Town's single highest source of sales tax revenue occur, the required reserve level should be adequate to meet the Town's immediate financial needs. For example, in the event of natural disaster, the Catastrophic Reserve would provide necessary coverage for basic operating expenses, including salary and benefits for safety and non - safety Town employees, while still meeting debt service obligations for approximately 60 days. This time frame would enable the Town to explore other available cash alternatives, including the use of internal service funds. Likewise, should the Town experience a loss of a primary sales tax contributor, the reserve level in the Budget Stabilization Fund would provide for a 3 year transition period, giving the Town adequate time to realign its operating costs with available resources, while minimizing service impacts. Catastrophic Resery e Funds reserved under this category shall be used to mitigate costs associated with unforeseen emergencies, such as a disaster or catastrophic event. Should unforeseen and unavoidable events occur that require the expenditure of Town resources beyond those provided for in the annual budget, the Town Manager or designee shall have authority to approve Catastrophic Reserve appropriations. The Town Manager or designee shall then present to the Town Council a budget amendment confirming the nature of the emergency and authorizing the appropriation of reserve funds. Budget Stabilization Reserve Funds reserved under this category shall be used to mitigate annual revenue shortfalls (actual revenues less than projected revenues) due to changes in the economic environment and/or onetime uses that will result in future efficiencies and/or budgetary savings. Examples of "economic triggers" and one -time uses include, but are not limited to: 1. Significant decrease in property or sales tax, or other economically sensitive revenues; 2. Loss of businesses considered to be significant sales tax generators; 3. Reductions in revenue due to actions by the state/federal government; 4. Workflow /technical system improvements to reduce ongoing personnel costs and enhance customer service; 5. One -time maintenance of service levels due to significant economic/budget constraints; and Title: General Fund Reserve Policy 4 -4 6. One -time transitional costs associated with organizational restructuring to secure longterm personnel cost savings. Capital and Special Projects Reserve Funds reserved under this category are designated for key infrastructure and capital/special projects as identified in the Town 5 -year Capital Improvement Plan, as there is no ongoing funding source to support the Town's capital needs. Replenishment of Unreserved Fund Balance In keeping with the principles discussed in this policy, when either fund is used, Town Council will develop a 1 to 5 year reserve replenishment plan to meet the minimum threshold of 25% of General Fund ongoing, operating expenditures, excluding one -time expenditures. Excess Fund Balance At the end of each fiscal year, the Finance and Administrative Services Department reports on the audited year -end budgetary fiscal results. Should actual General Fund revenues exceed expenditures and encumbrances, a year -end operating surplus shall be reported. Any year -end surplus which results in the General Fund fund balance exceeding the level required by the reserve policy shall be available for allocation for the following, subject to Council approval: 1. Offset projected future deficits 2. Anticipated intergovernmental fiscal impacts 3. One -time funding, non - recurring needs Upon funding of the above, any remaining surplus balances shall be divided equally between the Budget Stabilization Reserve and Capital and Special Projects Reserve for appropriation within the Capital Improvement Program budget. APPROVED AS TO FORM: Robert Schultz, Town Attorney Title: GASB 54 Fund Balance Policy Enabling Actions: Approved: 17i7TZ@jM Policy Number: 4 -5 To outline the policies and procedures adopted by the Town Council regarding provisions for identifying and classifying fund balances in accordance with Governmental Accounting Standards Board (GASB) Statement No. 54. BACKGROUND Fund balance is the difference between the assets and liabilities reported in a governmental fund. As outlined in Governmental Accounting Standards Board (GASB) Statement No. 54, there are five separate components of fund balance. Each separate component is identified by the extent to which the City is bound to honor the constraints on the specific purposes on which amounts can be spent. 1. Non - spendable fund balance (inherently unspendable) 2. Restricted fund balance (external limitations on use) 3. Committed fund balance (self - imposed limitations on use) 4. Assigned fund balance (limitation resulting from intended use) 5. Unassigned fund balance (residual net resources -no restrictions) The first two components listed above are not addressed in this policy due to the nature of their restrictions. This policy is focused on the financial reporting of previously unrestricted fund balance, or the last three components listed above. All components further defined below and reflected per this policy are in accordance with GASB 54. Title: GASB 54 Fund Balance Policy POLICY 4 -5 Committed Fund Balance The Town Council, as the Town's highest level of decision- making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. Town Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently. This category was previously reported as "unreserved, designated" under the old standard. The following funds are committed: 1. Capital Outlay 2. Debt Service 3. Advances to Other Funds 4. Repairs and Maintenance 5. Low & Moderate Housing Assigned Fund Balance The Town Council delegates the authority to assign fund balance to the Town Manager, for intended specific purposes, to be reported to the full Council. The following assignments are established and may be modified by the Town Manager or his/her designee as deemed appropriate. This category was previously reported as "unreserved" under the old standard: 1. Vasona Land Sale Reserve 2. Open Space Reserve 3. Post - Retirement Medical Reserve 4. Parking Reserve 5. Market Fluctuations Reserve 6. Manager's Contingency Reserve 7. Productivity Reserve 8. Sustainability Reserve 9. Catastrophic Reserve 10. Capital and Special Projects Reserve 11. Carryover Reserve 12. Comcast PEG Fund 13. Budget Stabilization Reserve 14. Special Studies Reserve 15. Debt Service Reserve 16. Year End Budget Savings 17. Special Revenue Fund 18. Compensated Absences Reserve Page: Policy Number: Title: GASB 54 Fund Balance Policy 3 of 3 1 4 -5 Unassigned Fund Balance These are residual positive new resources in the General Fund in excess of what can properly be classified in one of the other four categories. The General Fund may only report a positive unassigned balance. Conversely, any governmental fund in a negative (deficit) position could report a negative amount of unassigned fund balance. Fund Balance Classification The accounting policies of the Town considers restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the Town considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. Annual Reporting and Periodic Review Annually, after the completion of the Town's Comprehensive Annual Financial Report, the Finance Director or designee shall prepare and present a Summary of Fund Balance as part of the Financial Reporting and Town Annual Budget process. At least every two years, the Town Council will affirm or revise this Policy (usually during the budget process). APPROVED AS TO FORM: Robert Schultz, Town Attorney