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Attachment 7 - Public CommentFrom: Lee Quintana <leeandpaul@earthlink.net> Date: December 10, 2017 at 9:29:48 PM PST To: Joel Paulson <ipaulson@,losgatosca.gov>, Laurel Prevetti <LPrevetti@,losgatosca.gov> Cc: Rennie Rob <rrennie@losgatosca.gov>, Marico Sayoc <msavocalosgatosca.gov>, Leonardis Steve <sleonardis@losgatosca.gov>, Spector Barbara <bspector@,losgatosca.gov>, Marcia Jensen <mjensen(a,losgatosca.gov> Subject: Priority Setting Town Council Special Meeting December 12, 2017 From: Lee Quintana Re: Priority Setting Special Council Meeting Date: December 12, 2017 Mayor Rennie and Members of the Council, I will be out of town and not be able to attend this meeting, however I would like to submit the following for Council's consideration: Zoning Code: This is my annual request for As I have for a comprehensive review and update of the Town's Zoning Code. Hillside Development Standards and Guidelines: Review and update of the Hillside Development Standards and Guidelines, including but not limited to: 1. Review and revise FAR and maximum allowed square footage. 2. Consider establishing setbacks from the LRDA to define the building envelope in the hillsides. 3. Establish standards for maximum grading quantities in cubic yards for cut and fill (in addition to standards for maximum cut and hill depth) 4. Revise exceptions to maximum floor area and exceptions to HDS&G standards and guidelines as a whole 5. Re-enforce/clarify/establish standards to maintaining the rural, natural open character of the hillsides (also Fence Amendments below) 6. Establish standards to define the area in which non -animal friendly fences are allowed. (also see Fence Amendments below Fence Ordinance Amendments: 1. I participated in the development of the original draft submitted to staff by David Weissman and support the Draft Fence Ordinance as proposed by staff. 2. However, I do not support the subsequent amended draft submitted by David Weissman for the December 5, 2017 Town Council hearing. In particular I oppose the use of the parcel setback line rather than a line 30 feet back from the residence. Please consider returning the proposed Fence Ordinance to the Policy Committee, the Planning Commission or the Town Council, as appropriate, with additional direction to: 1. To ensure that the work of staff and the participation of the public is not wasted, while at the same time acknowledging that this might be revised again during a more comprehensive review of the HDS&G ATTACHMENT 7 2. To amend the fence ordinance to allow fences in the non -hillside areas up to be up to seven feet (7') hight provided the last foot is open lattice. 3. To amend the purpose and intent to support the division of the ordinance into two parts. (i.e. the regulation of fences in the hillsides has two functions, to provide protection for wildlife and humans, and to provide regulations regarding placement of fences to maintain the rural open character of the hillsides. 4. To receive clarification from the Town Attorney with respect to the loss of property rights. 5. To define the line which will be used to divide wildfire friendly form non -wildlife friendly fences. The information and knowledge provided by a wildlife corridor or movement study could be useful, but is not necessary to approve amendments to the Fence Ordinance if both wildlife movements and the maintenance of the open rural feel are considered. The study would not be necessary unless the setbacks from the parcel boundary is used as established as the line between wildlife friendly and non -wildlife friendly fences, which might have an adverse affect on wildlife. Currently the stumbling blocks to amending the Fence Ordinance are the issues of property rights and where to draw the line between animal friendly and non -animal friendly fences. 1. Pproperty rights issue: See #4 above. 2. The line between wildlife friendly and non wildlife friendly fences.. To be able to approve the ordinance a definitive line that is easy to implement needs to be specified; one that will not require additional studies or environmental review. As I stated during the public hearing at the Planning Commission, 30 feet from the residence may not make sense. However, the alternative of using the parcel setbacks make even less sense, as, in my opinion, it would not be inconsistent with maintaining the rural open character of the hillsides. Consider 40 feet from the residence, which would be 10 more than 30 feet from the residence, which is used in the HDSG to define the limit for ornamental landscaping. Thank you for your consideration, Lee Quintana From: Jeff Loughridge [mailto:Iokrij@comcast.net] Sent: Monday, December 11, 2017 10:27 AM To: Council; Town Manager Cc: Rob Rennie; Steven Leonard's; Marcia Jensen; Marico Sayoc; BSpector Subject: Bicycle and Pedestrian Advisory Commission UPDATE - for Council Addendum Dear Mayor and Council Members, Thank you for your support of the Bicycle and Pedestrian Advisory Commission. I was selected at the December BPAC meeting to provide the Council with an update of the Bicycle and Pedestrian Advisory Commission's accomplishments during the past year. Most notably, the Town Council approved the Bicycle and Pedestrian Master Plan in March of this year. Completion of this plan required numerous BPAC coordinated special meetings, public meetings, and work with the Master Plan consultant for over a year. Development and approval of this plan, allows the Council and the community to develop safer paths of travel for pedestrians and bicyclists throughout the Town, while allowing Los Gatos to apply for various grants and matching funds. The BPAC has been making a presence at Town events. At the Spring into Green event, the BPAC provided a booth with a Town map where residents identified bicycle and pedestrian areas of concern around the Town. The BPAC has also been involved with providing several successful bike valet services for Town events, including the Red, White and Blue Block Party, and the Town Holiday Parade. The BPAC helped to coordinate a bike valet for the private Eat, Drink Los Gatos event, which was also very successful. These efforts help keep the BPAC members informed of community priorities, so that they can more effectively fulfill their advisory capacity to Council. They also raise awareness among residents of the ease of riding their bikes to town events vs. fighting traffic and trying to find parking spaces. Additionally, the BPAC worked to develop a prioritization list for capital projects from the Bicycle and Pedestrian Master plan for Council approval. This led to the development of a recommendation for Council to use the Town non-competitive OBAG grant funding to fund the design of the Measure B identified Highway 9 Bicycle and Pedestrian Connector project. The BPAC also worked with PPW on incorporating bicycle and pedestrian striping enhancements in the Town's maintenance projects, allowing a simple and inexpensive way to increase bicycle and pedestrian improvements on Town roadways. The Council was supportive of the Commission in each of these endeavors. The BPAC appreciates the Council's continued support of both the Commission, and bicycle and pedestrian projects in the Town and is looking forward to another successful year in 2018. We welcome Council feedback on priorities for 2018. Respectfully, Jeff Loughridge Chair, Bicycle and Pedestrian Advisory Commission From: Peter Hertan [mailto:phertan@alum.mit.edu] Sent: Monday, December 11, 2017 10:46 AM To: Clerk; Laurel Prevetti Subject: Proposal for LG Emergency Preparedness Advisory Commission I submit the attached memo as an Addendum to tomorrow's TC meeting Packet. Peter 408-315-0209 Memo to: Town Council and Town Manager From: Peter L Hertan Date: December 11, 2017 Subject: PROPOSAL TO ESTABLISH AN EMERGENCY PREPAREDNESS ADVISORY COMMISSION In support of the recently recognized importance of Emergency Preparedness within Los Gatos, the town council should consider creating an Emergency Preparedness Advisory Commission to ensure the coordination, integration, and non -duplication of effort of the various citizen community volunteer groups: Specifically: CERT, ARES-RACES, DART, VIP, POLICE EXPLORERS, and the RED CROSS. Each of these organizations has well-defined roles for volunteers in support of responses to local emergencies. The town staff Priority Setting memo specifically describes the need for support of the CERT volunteer activities, but only generically identifies "other" community volunteer efforts. This memo is to specifically recognize all the volunteer groups whose activities should be included in the town's Emergency Operation Plan and to recommend the coordination and integration of those individual activities. The objective is to ensure synergy, elimination of duplication of effort, and to provide balanced financial and staff support. The CERT, ARES-RACES, and DART volunteers are well-known for their contributions to local emergency preparedness. The Police VIP program also provides for their volunteers to specialize in Emergency Management Preparedness (http://www.losgatosca.gov/154/Volunteers-in-Policing-VIP) although there are not currently such activities. In the past, VIPs participated in the monthly testing of the EOC equipment and activation of the EOC for drills and emergencies. A seven member Commission, meeting bimonthly, drawn from volunteers active in CERT, ARES-RACES, DART, VIP, RED CROSS, and POLICE EXPLORER (provides for a youth member) would permit communications and integration of efforts by each of these groups, as well as advocacy for specific, coordinated roles in an emergency. The ideal town staff interfaces would be the assistant town manager and the town's police captain because of their central roles in planning and executing the town's emergency management. From: Jeff Loughridge [mailto:lokrij@comcast.net] Sent: Monday, December 11, 2017 10:48 AM To: Council; Town Manager Cc: Rob Rennie; Steven Leonardis; Marcia Jensen; Marico Sayoc; BSpector Subject: Council Addendum - Bike Valet Service Suggestion Dear Mayor and Council members, Los Gatos needs more parking for existing businesses to comply with their CUPs. Time is wasted for residents and visitors trying to find a parking space and so many are discouraged from even coming downtown, they may be redirecting their retail purchases to other cities, where parking is not such a big problem. To reduce traffic, reduce the need for additional car parking and possibly increase the likelihood of people visiting downtown Los Gatos businesses, 1 would recommend that the Town of Los Gatos require a Bike Valet service for all outdoor events requiring a permit. This service would allow residents and visitors to bicycle to Los Gatos, park their bike in a secure/staffed place and be able to enjoy all the amenities Los Gatos offers. This is something that in order to reduce traffic and make the most of the limited parking, could be a permanent fixture even on the weekends in town. So far, a bike valet has been available for three events in town (The Red, White and Blue Festival, Eat/Drink Los Gatos event, and the Christmas Parade). The advantages of having this as a regular service would be that people would come to rely on the parking and many more would take advantage of this service. The equipment necessary for this is fairly inexpensive and can be bought and owned by the town and lent out to event organizers. believe the benefits of offering a regular bike valet services at events would be a very positive step in helping to resolve some of our local residents' and businesses' frustration around summer weekend traffic. It offers a simple, easy and low-cost way to decrease traffic and parking stress, while increasing the ability of local residents/visitors to attend fun events and patronize local businesses. Respectfully, Jeff Loughridge 109 Paseo Laura Los Gatos, CA 95032 12-11-17 Jak VanNada Los Gatos Community Alliance It wasn't long ago that I spoke about the unfunded debt being over $70 M. As time moves on and we get more of the information from the latest CAFR, I would like to prove that the REAL DEBT is closer to $90 M ! Yet it doesn't show up on our CAFR as obviously as I would like it to if I were a Councilperson. I'm the type that needs the 2x4 upside the head to make a point stick. What bothers me is that the CAFR and Budget would indicate that we get awards and run a conservative government, when in fact, to really run the town, we need the FULL, TRANSPARENT, EASY TO READ story. As it is written, I believe the hard facts MAY be there, hidden throughout the report, but as Council people, you need to dig too much for the full story. And yet, our CAFR shows that we have a positive $6.7M for the council to presumably spend in the next fiscal year. If you, the Council, looked deeper and asked the right questions of staff, you would realize that by following the rules to the T, but not highlighting the full story, you're really $5.4 million in the hole on the Net Position of Government Activities for 2017-18.. How many of you are thinking you have money to spend? How many of you read in the budget that we have flat revenues and flat expenses, and that we're dipping into reserves to keep paying for services? The town states that it runs things very conservatively; yet I am perplexed that we know the following and yet it seems to go unaddressed and unnoticed. We're told that we have 30 years to fix this problem, yet in the past 14 years, our unfunded liability has gone from 0 to $88,000,000 (see below) when you add the OPEB and use the more realistic 6.5% discount rate. We're told that we're better off than most of the other passengers on the Titanic. That does not give me comfort, nor should you feel good about our financial position. Our statement of position for the Unfunded Liabilities and the OPEB are based on FAKE DISCOUNT NUMBERS of 7.65%, or 7.5% or even 7.25%, when in fact, even CalPERS and their consultant, Wilshire Consulting, state that the realistic discount rate for the next 10 years is 6% to 6.21%. (see attached). We're much worse -off than what our CAFR or the Budget show and I suggest that the Council presses the staff for more transparent numbers and explanations so that you can have more realistic discussions about our debt. Put it in a graph so that you can see what's going on at a glance. Reading a CAFR or a budget is a huge yawn when pictures can tell you more about where we really are. Set up key indicators of important numbers that affect us most, and that gives you something to question without having to dig through the CAFR or the budget. CalPERS is lowering the discount rate over 3 years from 7.5% to 7.0%. However, in another DEEP breath, CaIPERS states that the projected rate of return over the next 10 years will be 6%. (see attached) If you'll listen (or read) carefully to the rest of this speech, you'll understand the sheer magnitude of dropping to the more realistic 6.5%, based on the town's CAFR sensitivity analysis found in the 2017 draft ! In this next fiscal year we are supposed to include the OPEB numbers into our financial statements. That means that we'll see a $7.3 Million positive balance instead of the more conservative -$5.4 million with few revenue dollars to offset the loss. I just think it's important that you look into the next few years, rather than look at the past that may have been done by the book, but doesn't give you forward thinking data. It's like driving your car while keeping your eyes on the rear view mirror. We projected flat revenues ahead, as well as flat expenses. But what if we added in the missing OPEB; OR THE MISSING UNFUNDED LIABILITIES THAT SHOW AS $47M on the 2017 CAFR, but in reality, are over $87,000,000? If you look at Note 9 in the draft 2017 CAFR (attached), it will show you that IF the discount rate dropped 1% (to approximately 6.5%), our total Miscellaneous and Safety Plans would have a staggering $69,419,086 due as opposed to the false -hope number of $47,300,000. If you add the OPEB at 6.5%, the total Unfunded Liabilities, if on the books conservatively, would be $ 18,463,936 (estimated) 2017 CAFR ^7.5% 6.5% (source 2017 draft CAFR, Page 79) Miscellaneous plus Safety = $47,272,000 $ 69,419,086 $12,600,000 $ 18,463,936 (THIS IS ESTIMATED) OPEB Our Real Liability @ 6.5% Discount Rate $ 87,735,936 $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $- Unfunded Liabilities Plus OPEB Our liability at 6.5% $87,735,916 Our liability at --7.5% $62,745,000 $55,992,000 $55,512,000 $49,739,000 $53,111,000 $45,902,000 $59,872 0 2011 2012 2013 2014 2015 2016 2017 1 Ca1PERS board gives green light to cut assumed rate of return to 7% BY RANDY DIAMOND • UPDATED 5:47 PM DECEMBER 21. 2016 2:12 PM The full Ca1PERS board approved Wednesday a plan to reduce the pension fund's rate of return to 7% from the current 7.5% over a three-year period. The action follows the recommendation of CaIPERS' finance and administration committee Tuesday night. California Gov. Edmund G. "Jerry" Brown Jr., who in the past has criticized the $303.6 billion California Public Employees' Retirement System, Sacramento, for having unrealistic investment return assumptions, issued a statement in support of the action. "Today's action by the CaIPERS board is more reflective of the financial returns they can expect in the future," Mr. Brown said. "This will make for a more sustainable system." The reduction in the rate of return is not as big as was discussed last month. Chief Investment Officer Theodore Eliopoulos said at Last month's finance and administration committee meeting that given diminished investment return assumptions over the next decade. 6% was a more realistic return for the coming 10 years. Andrew Junkin, president of Wilshire Consulting, which serves as Ca1PERS' general consultant, said at the November meeting that Wilshire was predicting an annual return of 6.21% for the next decade, down from its estimates of 7.1 % a year earlier. The change comes as representatives of California cities, towns, school districts and other governmental units that contribute to the nation's largest defined benefit plan argue that they could not afford the contributions necessary with a lower return rate. California state Controller Betty Yee, a member of the finance and administration committee, said at Tuesday's meeting that she can predict the headlines Wednesday. "There will be headlines tomorrow about how we were not aggressive enough," Ms. Yee said of the 7% rate of return, adding that the reduction will be noted around the world. But Ms. Yee said the rate reduction will help stabilize the pension fund and added that CaIPERS' falling funding ratio is a symbol of the changing world economy. Ca1PERS' current funding ratio is 68%. Two years of poor results — a 0.6% return for the fiscal year ended June 30 and a 2.4% return in fiscal 2015 — have contributed to a more negative view of what CalPERS can earn over the next decade. Mr. Eliopoulos, in explaining how the investment staff came up with the 7% rate of return, said it was based on a longer -term 30- year forecast that shows better investment returns, not a 10-year horizon. Mr. Junkin said at the November meeting that CaIPERS might not survive past 10 years if the rate of return was not lowered but never specified how much the return should be reduced. Under the three-year reduction, phased in to soften the blow on employers, the rate of return for the pension fund would be lowered to 7.375% for the fiscal year starting July 1, 2017; 7.25% for the following fiscal year; and 7% for the year after that. Ca1PERS is far from the only public pension plan lowering its return assumption. Statistics from the National Association of State Retirement Administrators show that 43 of 137 public plans have lowered their return assumption since June 30, 2014. But NASRA statistics show only nine plans out of 127 are below 7% and none has gone below 6.5%. TOWN OF LOS GATOS, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2017 NOTE 9 - EMPLOYEES' RETIREMENT PLAN, CONTINUED (c) Changes in the Net Pension Liability, Continued Miscellaneous Agent Multiple Employer Plan NOTE THAT THE $69,419,086 IS ABOUT $22,000,000 HIGHER WITH JUST THE 1% DROP OF THE DISCOUNT RATE TO THE 6.5% CALPERS BELIEVES WILL BE THE RETURN OVER THE NEXT 10 YEARS Safety Cost Sharing Plan Total Plans 1% Decrease Net Pension Liability $ 39,567,384 $ 29,851,702 69,419,086 Current Discount Rate Net Pension Liability $ 27,893,890 $ 19,377,843 47,271,733 1% Increase Net Pension Liability $ 18,225,532 $ 10,779,878 29,005,410 Pension Plan Fiduciary Net Position — Detailed information about the pension plan's fiduciary net position is available in a separately issued CaIPERS financial report. (d) Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions For the year ended June 30, 2017, the Town recognized pension expense of $1,982,015for the Miscellaneous Agent Multiple Employer Plan and $2,548,057 for the Safety Cost Sharing Plan. At June 30, 2017, the Town reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources for the Miscellaneous Agent Multiple Employer Plan: Pension contributions subsequent to measurement date Changes in assumptions Difference between expected and actual experiences Change in employer's proportion and differences between the employer's contributions and the employer's proportionate share of contributions Net differences between projected and actual earnings on plan investments Miscellaneous Deferred Outflows of Deferred Inflows Resources of Resources $ 2,407,496 3,506,890 72,054 224,893 Totals $ 5,914,386 $ 296,947 79