staff report.Strategic Priorities
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 01/24/2023 ITEM NO: 1
DATE: January 19, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Affirm and/or Refine Existing Strategic Priorities and Determine the Priorities
for New Ordinances.
RECOMMENDATION:
Affirm and/or refine existing Strategic Priorities and determine the priorities for new ordinances.
BACKGROUND:
Every year, the Town Council considers its Strategic Priorities for the next two years. In past
years, Strategic Priorities consisted of specific policy efforts that could be completed within a
relatively short time frame of a few months. More recently, Strategic Priorities have evolved to
address more complex issues facing the Town that may involve multifaceted approaches, such as
addressing transportation and traffic (see Attachment 1).
The Council’s identification of Strategic Priorities is a critical step in the budget process for the
next fiscal year by determining the policy priority areas . The next step is for the Town Council to
provide specific budget direction for the preparation of the Proposed Fiscal Year (FY) 2023/24
Operating and Capital Budgets (scheduled for February 21, 2023).
The goal of the session is to affirm and/or refine existing Priorities. Given the work that is
underway with existing Priorities, the Town organization has no staff capacity to add new items
on top of the existing ones; however, there is capacity for refinements of existing Priorities as
discussed in this report. In addition, the Town has limited financial capacity to add significant
new items as Town revenues continue to be impacted by the pandemic and insufficient relative
to expenditures.
This report discusses the Town’s staff capacity, existing Strategic Priorities, accomplishments to
date, work in progress, opportunities for refinements, and a list of recommended ordinances.
PAGE 2 OF 5 SUBJECT: Affirm and/or Refine Existing Strategic Priorities and Determine the Priorities for Ordinances DATE: January 19, 2023
DISCUSSION:
Staff Capacity
The Town of Los Gatos provides the key local government services of Public Works, Parks,
Library, Police, and Community Development with the necessary support services of Information
Technology, Finance, Clerk, and Human Resources. The Town Manager’s Office leads and guides
these administrative duties and closely collaborates with the Town Attorney’s Office to support
the work of the Town Council. From the Council’s priority setting, the work of the Town
Departments and Commissions is aligned to meet these Priorities.
As a service organization, each Department devotes approximately 90% of its staff time and
other budget resources providing core services to the community. These core services
contribute to the quality of life in Los Gatos and were recently affirmed through a community
survey. The community is accustomed to high quality municipal services provided by talented,
skilled, and caring employees. Some of these services had to evolve given the COVID-19
pandemic and in response to the changing needs of the community. In addition, Town
Departments have had to absorb new work required by State mandates without adding new
employees. Based on the Council’s leadership, staff is also implementing community vitality and
economic recovery actions to assist businesses, residents, and non-profits during these
challenging times.
The remaining 10% or so of Department resources are allocated to special projects, such as
Strategic Priorities. All of these services and projects are supported by the Town’s Operating and
Capital Improvement Budgets.
As we learned last week, the same staff who work on these initiatives are also an integral part of
the Town’s response in an emergency. For all of these reasons, the Town organization has no
idle capacity for big, new Priorities.
Existing Strategic Priorities
Attachment 1 depicts the Ongoing 2022-2024 Priorities, organized under the major topics of
Safety, Prudent Financial Management, Quality of Life, and Traffic/Transportation. Per Council
direction, the depiction of the Priorities show the interconnectedness of the major topics.
Accomplishments. Several items were accomplished during 2022, including the reinvigoration of
community policing; sale of the Venue to Los Gatos-Saratoga Union High School District; entry
into the lease for the Los Gatos Theatre; the construction of the Dittos Lane Affordable Housing
Development; adoption of Objective Standards for multi-family development projects; voter
approved measure to modernize the Business License Tax; funding for wildfire mitigation
PAGE 3 OF 5 SUBJECT: Affirm and/or Refine Existing Strategic Priorities and Determine the Priorities for Ordinances DATE: January 19, 2023
DISCUSSION (continued):
vegetation management; and implementation of a pilot downtown business employee parking
permit program.
Work in Progress. There are important efforts underway in each category. For
Traffic/Transportation, these efforts include wayfinding for downtown parking; a nexus study for
an update to the Town’s Traffic Impact Fee and a potential Vehicle Miles Traveled Fee; and
several active transportation improvements that are in the design and/or bidding phase.
Under Prudent Financial Management, the Town continues to put funding aside for future
pension and Other Post-Employment Benefits obligations; the Finance Commission is discussing
new revenue opportunities and other ways to address the Town’s fiscal challenges; and the Town
is working on the potential transfer of New York Avenue and other streets to the High School
District.
With respect to Safety, the Police Department has made great strides in many aspects of public
safety as discussed at the January 17, 2023, Council meeting. In addition, the Town is continuing
to manage roadway vegetation to reduce the Town’s risk of wildfire and seek funding for a siren
system as identified in the Ad Hoc Wildfire Mitigation Plan. Emergency preparedness activities,
including Community Emergency Response Team (CERT) recruitment and training, are ongoing.
The Holiday Parade and the recent storms provided an excellent opportunity for Town staff to
work with CERT and our Disaster Assistance Response Team (DART) to augment our lean
resources.
A variety of efforts are underway in the Quality of Life category. The Town Manager’s Office is
taking the lead in preparing a Diversity, Equity, and Inclusion Plan as directed by Town Council,
which should be finished in Summer 2023. The Senior Road Map is nearing completion by the
Senior Services Committee. Economic and community vitality efforts are well underway,
including the semi-permanent parklet program, the extraordinary rebounding of community
events, and technical assistance to businesses seeking to locate or expand in Los Gatos. Town
staff continue to enhance the variety of communication methods with the community to foster
engagement in Town efforts, including but not limited to Farmers Market booths, expanded
social media presence, website redesign, and pushing out information regarding community
workshops, Council meetings, and other participation opportunities.
The Housing Element is scheduled for Council consideration next week with follow up work to
refine the document in response to the California Department of Housing and Community
Development comment letter. The Housing Element is the Town’s affordable housing plan.
Once the Housing Element is certified, the Town must begin to work on key implementation
PAGE 4 OF 5 SUBJECT: Affirm and/or Refine Existing Strategic Priorities and Determine the Priorities for Ordinances DATE: January 19, 2023
DISCUSSION (continued):
programs as required by State law (e.g., rezoning the properties identified in the Sites Inventory).
While the 2040 General Plan was adopted in 2022, a referendum on the Land Use and
Community Design Elements necessitates further Council direction after the certification of the
Housing Element. The adopted 2040 General Plan also contains a large number of
Implementation Programs to be completed during 2020-2025, annually, or on an ongoing basis
(Attachment 2). There are a lot of important items, including actions in the updated
Environment and Sustainability Element; however, staff is not asking the Council to prioritize any
of those items and add them to Strategic Priorities until the Housing Element work, including site
rezonings, is complete.
The Council adopted an Ordinance to provide local rules for the implementation of Senate Bill 9
and directed additional work which is scheduled for Council consideration in February.
Opportunities for Refinements. The Council is welcome to refine the existing Priorities, clarify its
objectives, and/or provide additional direction. For example, the Town Council may want to
provide initial direction on two Town properties (224 W. Main and Pine/Calfhill Court) as part of
the “sell or lease certain Town properties” under Prudent Financial Management.
List of Ordinances
A growing aspect of municipal governance is the proliferation of state mandated laws which
require local ordinance development. In addition, decisions by the courts are mandating local
ordinances to implement their rulings.
In coordination with all Town Departments, the Town Attorney has provided a list of potential
ordinances to amend the Town Code in Attachment 3. This list is in priority order based on work
already in progress, State laws, service delivery, and emerging conditions. The Council is
welcome to adjust the priorities for this work.
Public Comments
Attachment 4 contains public comments received prior to 11:00 a.m. on Friday, January 20, 2023.
The comments include a mix of policy, service, and budget requests.
Priority Setting Process
After review of the materials and consideration of public testimony, the Council may take the
following steps to set priorities:
1. Affirm and/or refine the current Strategic Priorities; and
2. Determine the priority order of potential ordinances.
PAGE 5 OF 5 SUBJECT: Affirm and/or Refine Existing Strategic Priorities and Determine the Priorities for Ordinances DATE: January 19, 2023
CONCLUSION AND NEXT STEPS:
The completion of the Strategic Priorities aligns the work of the Town Departments, Boards,
Commissions, and Committees. The Council’s affirmation of existing Priorities and any
refinements inform the Council’s budget direction discussion scheduled for February 21 and the
preparation of the Proposed Fiscal Year 2023/24 Operating and Capital Budgets for Council
consideration in May.
Specifically, on February 21, the Town Council is scheduled to discuss the Five-Year Financial
Forecast and the sensitivity of the Forecast to changes in key revenue and expenditure
assumptions (i.e., alternative scenarios). As part of this discussion, the Council may direct
forecast revisions. The Five-Year Forecast provides important context to the Town Council’s
budget direction for the preparation of the Proposed Budget.
The Finance Commission is scheduled to discuss these same financial items at its February 13th
meeting, providing any comments and recommendations for Council consideration.
COORDINATION:
The preparation of this report was coordinated with all Town Departments.
FISCAL IMPACT:
The work of this session together with the Council’s budget direction in February informs the
preparation of the upcoming Fiscal Year 2023/24 Operating and Capital Budgets. The Priority
setting session itself has no fiscal impact.
ENVIRONMENTAL ASSESSMENT:
The Council’s work associated with Strategic Priorities is not a project defined under CEQA, and
no further action is required.
Attachments:
1. 2022-2024 Strategic Priorities
2. Los Gatos 2040 General Plan Implementation Programs 2020-2025, Annual, and Ongoing
3. Ordinance List
4. Public Comments received prior to 11:00 a.m. on Friday, January 20, 2023