Attachment 8Subject: FW: Setting Priorities
From: Mimi and Eric Carlson[mailto:mimiandericehotmail.com]
Sent: Saturday, January 14, 2017 3:14 PM
To: Council
Subject: Setting Priorities
Mayor Sayoc and members of the Town Council:
Your message in the January issue of L.G. Living invited resident participation in setting priorities for the Jan.
31 meeting-- we thank you all for listening. Your existing list is a good one.
We suggest adding traffic mitigation especially regarding Highway 17 backup issues, whether caused
by disasters such as a mudslide, fallen tree, accident or by just plain congestion from summertime beach
traffic. The gridlock we experienced last Wednesday, Jan.11 is unacceptable. The inconvenience of not being
able to get downtown to a meeting pales with the lost revenue of our local restaurants and other businesses
as well as the dangerous slowing of emergency personnel. A problem on #17 shouldn't shut down Los Gatos.
We also urge you to prioritize avoiding traffic impact on Los Gatos Blvd. from any North 40 development, for
example, by not allowing any residential development that would invite single family residences with school
age children.
Thank you,
Mimi & Eric Carlson
ATTACHMENT 8
To: Town Council
From: Dave Weissman
Re: Strategic Goals Meeting 1/31/2017
RECEIVED
lo`,Il attn.
1.1 2017 \tla S L-
MAYOR &
'TQ ;'NCIL
I propose three areas that the Town Council can easily and effectively address in the coming
year. All 3 items are "low hanging fruit," that is situations where a minimum of staff time would
be required to have a significant impact. Actually, might such changes be made through the
Consent Calendar?
1. Clarify the Fence Ordinance for hillside areas (Sec. 29.40.030): Presently, our hillside urban
forest is well protected by the Tree Protection Ordinance. But a forest without its animals is
incomplete and non -sustainable and that is exactly the situation we have because there are too
many movement -restrictive fences in the hillsides. The HDS&G, page 42, photo on left side of
page, states that hillside fences should "...allow wildlife to pass through." This concept is
reflected in the Town's fence code Sec. 29.40.030 (b) (4) b: "Fencing proposed for rural or
hillside areas shall be of an open design..." The importance of this issue is further discussed in
the attached page from the Summer, 2016, issue of the Committee for Green Foothills.
ACTION NEEDED: Reinforce the importance of Standards 1 through 6 of the HDS&G, pages 42-
43, that fences shall not interfere with wildlife corridors and that fences shall not be allowed in
areas that would impede the movement of wildlife. Define an "open fence" as one that permits
all animals, depending on their size, to either climb under, pass through, or jump over any fence
on the property, including side and back yards, and not just a front yard fence. Specify that
chicken wire, wire mesh, chain links, etc., over an open slat fence, is not considered animal -
movement friendly. Codify that this applies to any new hillside fence at any time, not just to a
fence associated with an A&S application, as staff currently maintains. Animal -restrictive
movement fences within 30 feet of the house (planting zone one), when needed to protect
landscaping, pets, pools, children, etc., can be animal restrictive, as the current code now
provides.
STAFF TIME REQUIRED: 30 minutes. In fact, all that needs to be done is listed above. 1 can easily
change or add a few words to the current ordinance to affect these changes.
2. Smoking Ordinance: When our current ordinance was passed in May, 2016, the TC said that
they wanted to revisit the ordinance in 1 year to see how things were going. The 1 year review
would be May, 2017. At that time, 1 propose, based upon current citizen feedback, or more like
a lack of any feedback, that two modifications be made: (1) That the smoking ban in multiunit
housing units (MUH) be expanded to include all such structures, whether individual units are
rental or privately owned, and (2) that the sale of tobacco and vaping products requires a
tobacco retail license (TRL), similar to that presently required for the sale of alcohol. Inclusion
of both of these issues was supported by the Youth Commission in 2016 but withheld from the
draft ordinance presented to the TC in 2016. The County's landscape has recently changed such
that bringing these 2 issues back to you, is now appropriate and less risky. I present a few
remarks on each issue:
A. Santa Clara County outlawed smoking in all MUH in 2014 and Palo Alto followed in 12/2016,
with a phased in delay of 1 year. Such blanket coverage eliminates the issue of a class
distinction and treats all citizens equally. Presently, if one is rich enough to own their own
attached condo or town house, they can now smoke therein even if their adjoining neighbors
are affected. I do not propose or want to have the police going around and doing sniff tests for
secondhand smoke. But this would give a Town resident the option of forcing their neighbor to
stop smoking inside their unit, or on an outside balcony, if such smoke was affecting them and
causing a health issue, such as exacerbating asthma in a child or heart disease in the elderly.
Equal coverage, without financial discrimination, should apply to every resident in the Town.
B. Santa Clara County, in 2015, required all businesses located in unincorporated areas and
selling tobacco products, to obtain a TRL. Palo Alto followed in 12/2016, with the licensing and
enforcement to be administered under a joint program with Santa Clara County. I propose that
we follow Palo Alto's lead and enact a TRL provision and partner with the County as the
enforcement agency. The American Lung Association has found this policy to be an important
part for keeping under age kids from starting to smoke.
ACTION NEEDED: As above. A preliminary draft in 2016 already included these 2 items. They
just need to be reinstated within the current ordinance, and I can work with Mr. Schultz to do
that.
STAFF TIME REQUIRED: 60 minutes. At this time, I suggest that we let the Youth Commission
focus their efforts on utilizing the $20,000 grant awarded to the Town for business and citizen
education, posting of appropriate signs within the Town's commercial areas, etc.
3. Revision of hillside visibility methodology. In May, 2015, the TC sent this methodology back
to the PC for revisions prompted by a need to implement the goals of the HSD&G. The PC held 3
subsequent hearings in 2015, including one meeting exclusively dedicated to just this issue. A
total of 7-8 hours of hearings. This issue, in draft revision, was again considered by TC in
February, 2016, but based on citizen testimony, was returned to staff and the Policy Committee
for further work. And there it has languished for the last 11+ months. Two recent Planning
Commission A&S hearings demonstrate the need to finish this revision. Otherwise, the same
visibility issues that prompted 5 Town public hearings in 2015-2016, will continue to be "re -
litigated" over again. This is unfair to all concerned and a terrible drain on staff time with the
many appeals that can ensue.
ACTION NEEDED: Request staff to work with Lee Quintana and myself to rework the detailed, 3-
page draft that we did in 2015 and that was submitted for both PC and TC hearings. That draft
is easily updated to include those specific discussions and decisions accepted by the PC and TC
during their 5 hearings on this issue in 2015-2016.
STAFF TIME REQUIRED: Only a few hours since 1 propose that we start discussions, with staff,
based on the detailed and well -reasoned draft that already exists. A few hours here will save
staff many hours down the line. This is one situation where more specificity is better.
4I1
BY NANCY REYERING BOARD MEMBER
The San Francisco Bay Area is host to one of the most
diverse and important ecosystems on earth. Our
biodiversity hotspot is the only home for numerous
species that are at great risk from human impacts.
Along the Peninsula, expanding development areas, commercial
farming industries, and population pressures contribute to habitat
loss for both plants and animals. Much of our wildlife is forced
into the margins.
Animals like the fox, bobcat, deer and mountain lion take
many paths to navigate this semi -urban landscape.
According to the Urban Wildlife Research Project,
animals use creeks as a primary transportation node
between the mountains and the Bay. But when you
track individual animals' paths across this creek -side
wildlife corridor, you find a much more harrowing
journey: animals consistently navigate backyards,
culverts, drainage ditches, busy freeways, and barbed-
wire fences. However, impassable property fences in
semi -rural areas often divert wildlife into busy streets and unsafe
urban areas. Rural and semi -rural residents can help these animals
stay safely in wilderness areas by using wildlife -friendly fencing
on their properties to improve animal crossings.
Several Peninsula towns, including Woodside and Portola
Valley, serve as "buffer zones" between wilderness and suburbia,
and are situated squarely in the last remaining habitat for
threatened wildlife. Because habitat cannot exist as "islands",
one of the most important ways residents of these semi -rural
areas can live in harmony with wildlife is by designing fencing
that permits animals to jump over, climb under, or pass through.
Especially important on larger properties, wildlife -friendly
They say good fences make good neighbors. Especially true
if your neighbors are deer and bobcat!
5 I GREEN FOOTNOTES
fencing allows wildlife to traverse property lines, have access to
creeks and forage sources, and keep wildlife where they belong:
away from the building envelope and off the roads. The goal is
not to eliminate fencing, but to use it appropriately. For example,
rather than fencing in an entire property's borders, it is more
appropriate to focus on deterrent fencing — high and sturdy
fences around gardens, livestock, and other sensitive areas that
prevent predators or garden plunderers from getting in.
Admittedly, it can be daunting to imagine a large predator
One of the most important ways residents of these
semi -rural areas can live in harmony with wildlife
is by designing fencing that permits animals to
jump over, climb under, or pass through.
like a mountain lion or coyote in your backyard. Smaller mammals
like bobcats and raccoons that can harm house pets or chickens
may also give pause. Deterrent fencing can keep pets and livestock
safe, while larger property boundaries can remain open to wildlife
in order to provide safe and efficient crossing to wilderness areas
that serve as more appropriate food and water sources.
By giving large mammals access to creeks and riparian
corridors, they find both food and water away from residential
habitation. When wildlife is prevented from accessing natural
habitat, they become stranded on islands, including roadways.
Young deer become separated from their mothers; foxes lose
access to their nesting places; even quail can have difficulty raising
their young when their habitats become fractured,
We need to provide connectivity throughout our communities
to create sustainable habitat for wildlife. When we incorporate
"smart fencing" strategies, and refrain from surrounding large
properties with impermeable fencing, we allow our wildlife to
move naturally, find forage, raise their young - and leave us
undisturbed.';,
Nancy Reyering is a member of the Board of
Directors of Committee for Green Foothills. She is
a member of the Open Space Committee in
Woodside and is co-founder of the Backyard Habitat
Program, established in Woodside in 2012 and
adopted by Portola Valley in 2014. She also worked
closely with other Town volunteers on Woodside's
"Fencing Guidelines,' adopted by the council in 2016.
From: Karen Briones <kbriones@lgusd.org>
Sent: Wednesday, January 25, 2017 1:04 PM
To: Marico Sayoc; Council
Cc: Matt Morley; Diana Abbati; Mark Silver; Bob Mistele; Town Manager; Thomas Cook;
Kevin Rogers; Karen Briones
Subject: LGMS SR2S Suggested Priorities from the Traffic Study
Attachments: LGMS SR2S Town Traffic Priorities Jan 2017.pdf
Good Afternoon Mayor Sayoc:
Thank you for your continued service to our schools and the Los Gatos community. On behalf of the Los Gatos -
Monte Sereno Safe Routes to School, we look forward to continuing the collaboration with the Town of Los
Gatos to strive to provide a safer environment for all who walk and bike in the community.
We respectfully submit the enclosed letter to you and the Town Council outlining LG-MS SR2S's suggested
priority projects as it relates to the Traffic Study. Our suggestions represent the continued support to help
improve the quality of life for all in Los Gatos.
Thank you for taking the time to review and consider these important projects.
Happy Walking,
Karen Briones
Safe Routes To School Coordinator
Los Gatos Union School District
408-335-2008
kbriones@lgusd.org
Vie
Los Gatos -Monte Sereno Safe Routes to School
A Non -Profit 501c3 Organization
17010 Roberts Road
Los Gatos, CA 95032
(408) 335-2000 Phone
(408) 395-6481 Fax
TAX EMEMPT #81-3709577
January 25, 2017
Honorable Mayor Marico Sayoc
Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
Los Gatos -Monte Sereno
Sale8outesto$dooi
Re: Request for consideration of priority projects for transportation improvements
Dear Honorable Mayor Sayoc:
We respectively ask that this request be submitted to members of the Town Council for
consideration at the January 31, 2017 Town Council meeting.
BACKGROUND
Los Gatos -Monte Sereno Safe Routes to School (LG-MS SR2S), a 501(c)(3), is a partnership with the
entities and families in the Los Gatos Union School District (LGUSD), Los Gatos -Saratoga Union High
School District (LGSUHSD), Town of Los Gatos, Hillbrook School (Hillbrook), and Los Gatos -Monte
Sereno Police Department (LGMSPD). With continued support from Santa Clara County Public
Health, LG-MS SR2S continues to offer unique programs designed collaboratively to continually
improve safety and increase the number of children travelling to and from school each day by active
transportation. This distinct partnership has led to many improvements across the Town of Los
Gatos to support the community and its youth.
Last spring 2016, LG-MS SR2S supported the Town of Los Gatos, LGUSD, LGSUHSD, Hillbrook School,
and LGMSPD to commission a study to assess the current status of pedestrian and bicycle
infrastructure and supportive efforts in Los Gatos. The Traffic Study Around Schools (Traffic Study)
brought forth recommendations for 52 roadway improvements and 17 on -campus improvements,
along with suggestions to augment education and encouragement across all campuses.
As part of this study, members of the LG-MS SR2S Education Subcommittee were tasked with
reviewing the recommendations brought forth by the Traffic Study. After review, the
Subcommittee selected twelve (12) priority projects. These projects touch on improvements and
safety around all schools, add to general community safety, improve access to modes of active
transportation, and support future growth. Using data collected and student density maps from the
Traffic Study each project was then ranked to account for safety and the impact on the greatest
number of students along with modes of transportation effected. In addition, implementation
complexity and the significance of the safety concern were considered. Some projects are grouped
Los Gatos -Monte Sereno Safe Routes to School
• Hillbrook School • Los Gatos Union School District • Los Gatos -Saratoga Union High School District
• Town of Los Gatos
-/T
Page 2 —January 25, 2017
LG-MS SR2S Traffic Study Recommendations
as one because they are dependent on each other. Work on one part of the roadway would be
greatly benefited or completed by the additional work of the other project. Those combined
projects are considered as one in the ranking and their estimated costs listed are combined.
LG-MS SR2S recommends that the Town of Los Gatos continue to work with LG-MS SR2S to move
forward with the following projects. These projects represent continued support for the safety of
the youth of our community and further help to improve the quality of life for all in Los Gatos.
IMMEDIATE CONSIDERATIONS
LG-MS SR2S recommends that the following twelve (12) items for consideration by the Town
Council as budget priorities.
A. Feasibility Study on Private Bussing Service to Reduce Traffic Congestion.
(Traffic Study page 63)
LG-MS SR2S recommends that the Town of Los Gatos work with local school districts and
private schools to access the feasibility and impact of implementing a private funded bussing
service to and from local schools. This study is necessary for the community to seek funding
from Measure B to support the bussing service. By proactively completing a feasibility study,
the Town of Los Gatos would be prepared to seek those funds early in the funding cycle.
Estimated Cost: $50,000
B. Town and Los Gatos Saratoga Union High School District Policy. Statements Supporting
School Access from Los Gatos Lodge Property. (Traffic Study page 39)
The study recommends that the Town Council and LGSUHSD both adopt policy statements
supporting public access to Los Gatos High School (LGSUHSD property) for any future
development of the Los Gatos Lodge property.
Estimated Cost: $0
C. Fisher Avenue Intersection Improvements: Westbound Right Turn Lane from Fisher
Avenue into R.J. Fisher Middle and Fisher Avenue Intersection Improvements: dedicated
left turn lane from Fisher Avenue into R.J. Fisher Middle. (Traffic Study page 34)
These 2 projects complement the work completed to re -direct traffic flow through the drop-
off zone along Fisher Ave on the R.J. Fisher Middle School campus. In addition, the work
would help provide significant traffic relief benefiting R.J. Fisher and Van Meter School.
Estimated Cost: $15,000
Los Gatos -Monte Sereno Safe Routes to School
• Hil!brook School • Los Gatos Union School District • Los Gatos -Saratoga Union High School District
• Town of Los Gatos
Page 3 — January 25, 2017
LG-MS SR2S Traffic Study Recommendations
Los Gams -Monte Seim
Sale Routes to School
D. Blossom Hill Road Enhanced Bikeway. (Traffic Study page 29)
LG-MS SR2S, LGUSD and LGMSPD frequently receive concerns about safety for bicyclists and
pedestrians along this stretch of road. Work to improve safety of pedestrians and bicyclists
along this route would benefit students and the general community.
Estimated Cost: $75,000
E. Roberts Road — Fisher School Frontage Improvement: Dedicated Right Turn Lane to
Roberts Road Drop -Off Zone. (Traffic Study page 31)
This project improves traffic flow by separating traffic proceeding on Fisher Road from traffic
waiting to utilize the drop-off zone. In addition, this project supports the work done on
Fisher Avenue (project C) and helps to move traffic to support the bikeway enhancements
recommend in Blossom Hill Road Enhanced Bikeway (project D).
Estimated Cost: $15,000
F. Shannon Road and Shady View Lane Intersections Improvements (Traffic Study page 4)
Improved crosswalk markings and stop signs would increase visibility of pedestrians along
this busy stretch of Shannon Road. Students traveling to Blossom Hill School, R.J. Fisher
Middle, Los Gatos High School and Hillbrook School would benefit.
Estimated Cost: $15,000
G. Daves Avenue and Poppy Lane Left Turn Lane Installation (Monte Sereno). (Traffic Study
page 10)
LG-MS SR2S recommends that the Town of Los Gatos work with LGUSD and LG-MS SR2S to
engage the City of Monte Sereno to improve this stretch of Poppy Lane to support student
safety.
Estimated Cost: $10,000
H. Highway 9 and Massol Enhanced Crosswalk Improvements. (Traffic Study page 13)
While the Town of Los Gatos has implemented a number of improvements at this
intersection, LG-MS SR2S frequently receives concerns regarding safety at this intersection.
In addition, it is an area of high conflict between motorists and both pedestrians and
bicyclists adding to further safety concerns.
Estimated Cost: $30,000
Los Gatos -Monte Sereno Safe Routes to School
• Hillbrook School • Los Gatos Union School District • Los Gatos -Saratoga Union High School District
• Town of Los Gatos
Page 4 —January 25, 2017
LG-MS SR2S Traffic Study Recommendations
I. Hilow Road Improvements and Hilow Road-Marchmont Drive Bicycle Routes. (Traffic
Study page 47 & 48)
Improved signage, upgraded crosswalk markings, and the addition of sharrow markings
greatly improve pedestrian and bicyclist safety. Further evaluation for improving visibility
and clarification of markings is needed.
Estimated Cost: $5,000
J. Cherry Blossom Lane (South) Bicycle Blvd. or Enhanced Bikeway and Cherry Blossom Lane
(North) Bicycle Blvd. or Enhanced Bikeway Concept Plans. (Traffic Study page 3)
These 2 projects greatly improve the safety of bicyclists along the entire stretch of Cherry
Blossom Lane. This road serves the majority of students traveling to and from Blossom Hill
School, R.J. Fisher and Los Gatos High School. Weekend bicyclists and pedestrians would
also benefit from the improvements. The work complements work in progress on the
Bicycle and Pedestrian Master Plan facilitated by the Bicycle and Pedestrian Advisory
Commission.
Estimated Cost: $40,000
K. Los Gatos Boulevard and Highway 9 Intersection Improvements. (Traffic Study page 40)
Improvements to pedestrian and bicyclist safety at this intersection would greatly benefit
Van Meter School, R.J. Fisher, Hillbrook School and Los Gatos High School.
Estimated Cost: $500,000
L. E. Main Street Speed Tables and/or Mid -Block Crosswalk Bulb -outs
Los Gatos High School and the Town of Los Gatos have implemented a dedicated drop-off
zone along the front of the school on Main Street. This has increased the number of student
pedestrians along that stretch. Work to improve pedestrian safety complements that effort.
(Traffic Study page 41)
Estimated Cost: $35,000/each
Los Gatos -Monte Sereno Safe Routes to School
• Hillbrook School • Los Gatos Union School District • Los Gatos -Saratoga Union High School District
• Town of Los Gatos
Page 5 —January 25, 2017
LG-MS SR2S Traffic Study Recommendations
In closing, LG-MS SR2S and the Town Council are well -aware of the benefits of traffic improvements
around schools and that the realization of these benefits will depend on the ability of local agencies
to work collaboratively to serve the area.
For these reasons, we respectively ask that the Town of Los Gatos continue to support and fund
projects that encourage safe active transportation of students and their families in the community.
Please let us know if the Town Council members would like additional information regarding the
priorities listed above.
Sincerely,
Thomas Cook
Thomas Cook
President
Los Gatos -Monte Sereno Safe Routes to School
cc: Karen Briones, LG-MS SR2S
Mark Silver, Head of School, Hillbrook School
Diana Abbati, Superintendent, Los Gatos Union School District
Bob Mistele, Superintendent, Los Gatos -Saratoga Union High School District
Laurel Prevetti, Town Manager, Town of Los Gatos
Los Gatos -Monte Sereno Safe Routes to School
• Hlllbrook School • Los Gatos Union School District • Los Gatos -Saratoga Union High School District
• Town of Los Gatos
DATE:
TO:
FROM:
SUBJECT:
Citizen Analysis of Los Gatos Finances
January 26, 2017
Town Council
Jak Van Nada, Terry Duryea, Lee Fagot, Peter Hertan
Proposal for a more robust Finance Commission
RECEIVED
VtA vWt-lc- S1210 a.m.
All 262017
MAYOR &
TOWN COUNCIL
We recommend the Town Council take the following action at its January priority setting meeting
• Create a 5 member Finance Commission, three of whose members are citizens with executive level
financial experience and proven analytical skills.
• The three citizen members should be advisory to the council and not have voting privileges.
• Recommendations from this committee will be made to the full council by the two council members of
this commission.
Basis for our recommendation
• Experienced C-level financial executives would form working relationships with Council members and
Staff to identify and analyze long term financial options focusing on unfunded liabilities and generating
revenues for infrastructure improvement.
• This approach provides additional insight and analysis from experienced executive level financial
decision makers who have the unique perspective of Los Gatos residents
• This Finance Commission will add more value than it costs.
Mission of the Finance Commission
• Provide financial analysis of Long term funding ratios for the Town's pension obligations and the Towns
OPEB obligations
• Provide financial analysis and improvement targets for the Long term PCI of the Town's road network
• Work with Town Staff and Council members to identify options for key strategic decisions.
• Provide independent analysis and digests of financial reports as typically provided to CEOs and Boards of
Directors
• Provide financial analysis of topics of interest to staff and town council as may be requested
The Most Critical Challenges to town Financial Stability
The costs to address the following two critical obligations will continue to grow faster than inflation until the
Town chooses a strategy for resolution:
• Because of the 7.5% return assumption CaIPERS uses to compute the unfunded liability, the liability is
equivalent to having 7.5% interest bearing debt that needs investment returns of 7.5% annually to keep
from growing further
o As CaIPERS reduces their assumed investment return, the computed unfunded liability
automatically increases (so the present value of the pension obligation becomes larger)
• If future investment in streets is limited to currently identified funding, QES computes the PCI will
decline to 64 in 5 years (QES report referenced above)
o The cost of street repair increases exponentially as the PCI declines
o On October 28, 2015 the Town Council adopted a resolution establishing a $12.2M Almond
Grove Street Rehabilitation Fund. However this rehabilitation will have little impact on the
Town's PCI [because it applies to less than 3% of the total inventory of streets]
o This Almond Grove commitment reduced the Town's Capital Projects reserve balance by 47%,
leaving only $13.SM at June 2016 in the Governmental Fund balance for all other Capital
Projects [page 67 of 2016 CALFR]
o $13.5M is $5.0M less that the $17.8M the QES study reports is needed to return the entire
Town's PCI to 72, its PCI in 2012
]�3
Citizen Analysis of Los Gatos Finances
Our concerns about the Town's long-term fiscal stability.
We believe the Town's day to day operations are well managed, but believe the character of the Town is at risk
because of significant future financial obligations that need to be addressed as strategic threats. By deferring
action, the total costs will be greater, just as paying the minimum payment required of high interest rate credit
card debt increases the total costs, or delaying saving for retirement increases the money that has to be set
aside once an individual begins to save.
This letter includes an update to Town finances based on information contained within the draft 2016 CAFR.
The reference source for data provided below is included.
Overview of Town Finances from the Draft 2016 CAFR (unless otherwise referenced):
• The Town's 2015/16 revenues are $1.5M less than they were 10 years earlier. In fact they are lower
than any year in the last 10 years. [Page 116 of 2016 CAFR]
• The Town's daily operating expenditures increased from 65% of revenues to 84%. [Computed from
data on page 116 of the Draft 2016 CAFR and exclude redevelopment, capital outlay and debt service]
• The Town's ability to make strategic investments except from reserves has been significantly reduced.
During the past 10 years:
• The Town's deferred maintenance needs for streets has increased (the PCI declined from 72 in 2010 to
67 in August 2015 [QES Pavement Management Program Budget Options Report dated March 4, 2016]
• The unfunded liability for the Town's Misc and Safety Pension Plans has grown to $37.7 M [Page 70 of
2016 CAFR} from approximately $16.78M 10 years ago and $8.78 M 14 years ago.'
o The $37.7M does not reflect CALPERs 2016 investment return of 0.61% which will increase the
unfunded liability $8+M to more than $45M as of June 2016.
o The Town's pension are 73% funded (the same as the average funded rate for all local
governments of 72.6%) [Page 25 of 2016 CAFR]
o In addition to this unfunded pension liability, the Town also has an unfunded liability of $12.5 M
for the OPEB which is only 44% funded [Page 76 of 2016 CAFR]
o The Town's unfunded liabilities for both Pensions and the OPEB, after recognizing CatPERS
2016 0.61% investment return [CatPERS press release July 18, 2016], is more than $57.5M.
i
Information was taken from Finance Committee Report of 12.22.15 — For the year 2003, Misc $2.98M, Safety
$3.6M; for the year 2007, Misc - $11.6M; Safety $5.18M. There was no OPEB recorded at the time.
3
Citizen Analysis of Los Gatos Finances
Our Motivation
• Given the large dollar amounts involved in the two key strategic issues, solutions require long term
strategic thinking to develop options that address these threats to the Town
• Residents want a better understanding of why the costs of daily government has gone from 65 cents of
the revenue dollar to 84 cents of the revenue dollar since 20??
• Town Finances can be extremely complicated and require experience, expertise and significant time to
understand and monitor them.
o The 2016 CAFR is 134 pages and the Town Finance Committee has only 4 days to review and
absorb it
• There are no easy solutions. It will require creativity and new ideas to identify options plus a political
will to implement. Solutions may take multiple years to implement.
• Before approving any spending decisions, Council has to consider if the Town would be better off in the
long run to use those funds to address the Town's twin obligations for Retirement funding and Road
Maintenance
o This isn't the message anyone wants to hear, but the sooner the Town begins to address these
obligations, the greater the chance that the Town can sustain its Community Character and
financial stability
Cost of the Finance Commission
• This new Commission may in the short term increase the demand on Town Staff resources
o Assuming resident involvement adds value, in the near term this can result in cost savings for
the Town
• The Town should want to add more resources to address the long term threats the two critical
obligations represent to Los Gatos' financial stability
Benefits to Town Council and Staff for involvement of Professional Financially Experienced Residents
• They supplement the political process
• They are different from Staff as they live in Los Gatos, having made a significant financial investment in
the community with home or business ownership
• Additional problem solving skills that would include financial modeling, scenario planning, and risk
analysis for the identified tradeoffs
Additional Benefits of Long Term Resident Participation as Resource for Town Council and Staff
• Provide briefings that digest the salient findings and conclusions as a guide to reading the various
financial statements potentially reducing the time spent reviewing the volumes of financial data.
• Support Town Staff to prepare a continuing education for Council members to help them analyze the
Town's financial issues — both the budget documents, the CAFR and the Five -Year Capital Improvement
Program
• Ask the questions that add to the knowledge that Town Council needs but are not yet aware
• Supplement Town Staff on financial matters by interpreting Town Staff answers to Council member's
questions with the background of financial professional residents
• Explore and report on specific concerns of specific Council members
• Determine Key Financial Ratios that assist council to make more informed decisions when each CAFR is
published or reviewed
3l3