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4. INFORMATIONAL REPORTS (ITEMS PROVIDED SOLELY FOR INFORMATIONAL PURPOSES)

​Routine monthly and quarterly reports

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A. Treasurer's Report January 2026. Total Cash and Investment Accounts:    $32,817,853

B. Disbursement Report January 2026:    -$2,365,506

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5. CONSENT CALENDAR  (A consent calendar is a means of handling a number of routine matters with one motion and vote, and no discussion. These items can be considered separately at the request of a Council Member or a member of the public.)

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​A-E. Approval of the City Council Meeting Minutes January 15, 2026, January 21, 2026,
February 2, 2026, February 4, 2026, and February 10, 2026.

F. Vacating Appointment to the Los Altos Hills Pathways Committee - Mike Henshaw

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G. Resolution Accepting the Proposed Donated Architectural Services from M Designs Architects for the Replacement of the Parks and Recreation Building

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On January 15, 2025, the City Council directed staff to pursue the replacement of the existing Parks and Recreation building with a new prefabricated structure of approximately 1,000 to 1,200 square feet while also streamlining the design and construction process.

New Planning Commissioner, Malika Junaid, who is also the Principal Architect of M Designs Architects (MDA) and has extensive local experience designing ADUs and navigating the Town’s planning application process. Ms. Junaid offered to have MDA support the Town by providing pro bono architectural services for the project. MDA submitted a proposal to prepare conceptual design plans that would establish the building layout, size, and architectural character, and assist the Town in submitting the conceptual design during public hearings before the Planning Commission and City Council. The donated services represent an estimated value of approximately $70,000 in professional services.

Staff recommends accepting the donated services. General Timeline shows work commencing in May 2026 with public input and concluding with Council approval in March 2027.

Ms. Junaid would need to recuse herself from any Planning Commission discussions related to the Parks and Recreation Center Renovation Project.​

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H. Resolution Terminating the Emergency Declaration for the Town Hall Heating, Ventilation, and Air Conditioning System Repair/Replacement Project.

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On December 9, 2025, the City Council declared the Town Hall HVAC System Repair/Replacement Project an emergency due to the urgent nature and need to restore heating in the lobby and some offices. On January 23, 2026, the City Manager executed an emergency construction contract with Fuse Service, Inc. to install new heat pumps, ceiling cassettes, thermostats, and electrical subpanel, and demo existing equipment for an amount not to exceed $160,000, including a contingency fund of $15,000.

Replacement work began on January 26, and the installation of the new mini-split units was completed in early March. Emergency has ended.

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I. Resolution Awarding a Construction Contract for the FY25/26 Pavement Rehabilitation and Drainage Improvement Project to G. Bortolotto & Company, Inc., the Lowest Responsible and Responsive Bidder, for an Amount of $1,103,936 and Authorizing the City Manager to Execute the Construction Contract; and
Approving Project Contingency Funds of $165,000 and Authorizing the Public Works Director to Approve Potential Contract Change Orders Within the Said Funds

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Each year the Town conducts a Pavement Rehabilitation and Drainage Improvement project based on a survey of road condition and economic analysis under the Pavement Management Technical Assistance Program (P-TAP 25). In January, the Council approved the Plans and Specifications for the project and authorized staff to advertise the project for formal bidding. In February, the Town received three bids ranging from $1,103,935.64 to $1,237,723.10 with the lowest responsible and responsive bidder being G. Bortolotto & Company, Inc. Staff is requesting authorization to award the program. Construction is anticipated to begin in April 2026 and be completed by the end of June 2026.

The following roads will be treated this year: Corbetta Lane, Corte Madera Lane, East Sunset Drive, Elena Road (Vinedo Lane to Becky Lane), Fremont Road (Arastradero to Saint Francis Road}, and Robleda Road (Elena Road to Chapin Road). Overall project expense including contingency and inspection is expected to cost $1,348,936. Roughly 60% of funding comes from State Gas Tax revenues, Senate Bill 1 (SB1; Road Repair and Accountability Act of 2017) funds, Vehicle Registration Fees (VRF), Measure B (Local Streets and Roads - LSR) funds and encroachment fees, with the remaining 40% coming from the Town’s General Fund.

Sufficient funds are available for the Program in the FY’26 Budget.

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J. Resolutions Granting Various Extensions for Various Building Permits

 

Depending on building project valuation, projects are granted from 18 to 36 months to complete construction. Two six-month extensions can be authorized by the Building Official if requested prior to expiration of the permit. Subsequent extensions require Council approval. Construction time limits are intended to protect neighbors from unnecessary disruption, noise, and inconvenience associated with extensively delayed projects.

Staff recommends granting one-year extensions, until March 2027, for five additional projects (22 extensions have been granted in the last year) with permits issued between 2021 and 2023 that expired in 2024. Applicants cited various construction delays as the reason. There is no fiscal impact, as service fees cover Town costs.

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​K. Notification of Fast Track Approval at 10225 West Loyola Drive​​

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At the March 3, 2026 Fast Track Site Development Hearing, the following application was approved: 10225 W Loyola Drive – File #SD25-0034 – Lands of Conrad Site Development Permit for the construction of a 2,413 square-foot, three-story addition to an existing 4,905 square-foot, multi-level single-family residence with attached garage; construction of a 1,042 square-foot detached garage and accessory structure; construction of a 1,032 square-foot pool and pool decking, and associated hardscape improvements.

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​L. Letter of Support for AB 2517 (Calderon) Fire Hazard Severity Zones. Notice of SUPPORT (As Introduced on February 20, 2026)

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The Town of Los Altos Hills is pleased to support AB 2517 (Calderon), which would improve the Fire Hazard Severity Zone (FHSZ) designation process by ensuring consistent updates to Local Responsibility Area (LRA) maps and establishing a more transparent, publicly accessible process for developing and releasing these critical designations.

Bill Text: CA AB2517 | 2025-2026 | Regular Session | Introduced | LegiScan

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6. NEW BUSINESS

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A. Discussion and Possible Action on Establishing a Housing Element Ad Hoc Committee

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Council to consider Staff recommendation to establish a Housing Element Ad Hoc Committee and define the Ad Hoc Committee’s structure, Council Membership, and specific charge, with a defined sunset date aligned with the implementation of the Town’s 6th Cycle Housing Element.

Staff believes that the Ad Hoc Committee structure would allow the City Council to benefit from focused discussions related to Housing Element implementation without creating an additional standing committee.

Although Ad Hoc Committees are typically not subject to the Brown Act, staff recognize the strong community interest in Housing Element-related discussions and the importance of maintaining transparency throughout the process.

To support public engagement, staff recommend the following transparency measures:
   • Agendas will be publicly posted prior to meetings.
   • Members of the public will be able to attend meetings and participate in the discussion.
   • Meeting materials and information will be made publicly available.
Staff is seeking whether the Council wishes to proceed and requests direction.

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7. PUBLIC HEARINGS

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A. Resolution Approving a Conditional Use Permit and Variance for modifications and improvements to Pinewood School at 26800 Fremont Road; Lands of Palo Alto Unified School District; File #CUP25-0004  (Staff: J. Bradford)

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The applicant has submitted a request for a Conditional Use Permit to demolish five single-story structures and construct three two-story buildings along with a theater. The existing gymnasium and turf field will remain, while the tennis courts will be relocated to the rear corner of the school property. Onsite parking and vehicular circulation will be reconfigured, including the addition of a new driveway on Fremont Road. The proposed development introduces two-story buildings and a theater, resulting in a total floor area exceeding twice that of the current conditions. The corresponding increases in both development area and floor area, which surpass the allowable Maximum Development Area (MDA) and Maximum Floor Area (MFA), necessitate the requested variances. These variances pertain to front and side yard setbacks associated with the reconfigured parking areas only, and not with the placement of new building structures. Pinewood School seeks authorization for an increase in student occupancy of 75 students. The new exit driveway, situated approximately 355 feet east of the existing access point, is designed to minimize vehicle conflicts along Fremont Road. The revised site plan provides five additional parking spaces and enhances circulation by separating student loading and parking zones, introducing pedestrian pathways, and establishing a
280-foot loading zone capable of accommodating peak drop-off and pick-up periods.

On March 19, 2026, the Planning Commission conducted a duly noticed public hearing to review the proposal and rendered a unanimous vote of 5-0-0 in favor of recommending approval to the City Council, subject to conditions of approval. There is no fiscal impact to the Town related to the review of the Conditional Use Permit and Variance, as the applicant contributed approximately $29,000 in application

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An ad hoc committee consisting of Vice Mayor Tyson and Councilmember Tankha has proposed a "policy" (more like a tradition) for an orderly transition process for Mayor and Vice Mayor. The major changes proposed are that candidates for Vice Mayor need to have served at least 1 year on the Council, and candidates for Mayor need to have served at least 2 years on the Council. The policy would not be binding and Councils would be free to decide otherwise. Most other criteria proposed are consistent with the existing tradition, which uses votes received in the last election and duration since previous term of Mayor or Vice Mayor.

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B. Waiver of Reading and Introduction of an Ordinance Amending Title 2, Chapter 1 “Councilmember Salaries” of the Los Altos Hills Municipal Code to Increase the Councilmembers’ Salaries to Nine Hundred Fifty Dollars a Month (Second Reading; Staff: J. Parcutilo)​

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This agenda item is to allow for the second reading/introduction of an ordinance to increase councilmember stipends from $300/month to $950/month (plus benefits), following which, if approved again, the ordinance becomes law after 30 days. Any changes would take effect only after the November 2026 election. Current councilmembers whose terms persist beyond that election would be eligible for the higher stipend after the election.

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A comparison of stipends and benefits from comparable jurisdictions is below:

  • Town of Atherton
    o City Council stipend: $0
    o Planning Commission stipend: $0
    o Benefits: No medical, dental, or vision benefits offered to elected or appointed officials
  • City of Cupertino
    o City Council stipend: $743.07 per month
    o Planning Commission stipend: $50 per meeting
    o Benefits: Benefits offered to City Council members only
  • Town of Hillsborough
    o City Council stipend: $0
    o Planning Commission: Not applicable (no Planning Commission)
    o Benefits: Medical, dental, and vision benefits offered to City Council Members
  • Town of Lafayette
    o City Council Stipend: $0
    o Planning Commission: $0
    o Benefits: Councilmembers can get insurance through their carrier, but it is at their own expense.
  • Town of Portola Valley
    o City Council stipend: $0
    o Planning Commission stipend: $0
    o Benefits: No Medical dental, or vision benefits offered
  • City of Saratoga
    o City Council stipend: $250 per month
    o Planning Commission stipend: $150 per month
    o Benefits: Councilmembers may elect to join CalPERS and may enroll in health benefits,

       paying the full premium amount above the PEMHCA minimum; no health benefits for Commissioners
  • Town of Woodside
    o City Council stipend: $950 per month
    o Planning Commission stipend: $0
    o Benefits: No medical, dental, or vision benefits offered to City Council Members

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At the February 10, 2026 meeting, Vice Mayor Tyson proposed increasing Councilmember stipends from the current $300/month to $600/month. Councilmember Mok supported the proposal. Councilmember Swan offered a substitute motion increasing the stipend to the the state maximum of $950/month. (LAH Councilmembers are also eligible for health, vision and dental benefits, which some - but not all - of them use.) Mayor Bhateja felt that the current stipend was fine, that the optics of this proposal were not good because it looked like self-dealing, and he opposed the proposal. However, the motion passed 3-2 with Vice Mayor Tyson, and Councilmembers Swan and Mok supporting the increase to $950/month (plus benefits) while Mayor Bhateja and Councilmember opposed.

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If the motion is approved this time, it will become law after 30 days. If it fails to get a majority vote this time, it will be dropped.

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C. Consideration of Adoption of a Resolution on an Ordinance (First Read) Amending the Town’s Accessory Dwelling Unit regulations

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The purpose of the Ordinance Update is to: Align the Town’s ADU regulations with new state statues, Incorporate HCD‑requested clarifications, update standards to reflect the Town’s new multi‑family zoning districts, and Improve clarity and internal consistency within Article 14 of the Municipal Code.

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The Planning Commission reviewed the changes on March 5, 2026 and recommended approval with minor errata. The City Council is asked to introduce the ordinance.

 

Key Changes Required by State Law
1. Updated Definitions- “primary dwelling unit” and “livable space” for ADU conversions.
2. New ADU Allowances in R‑A and Multi‑Family Zones:

    State law stipulates the quantity of each type of ADU that is allowed.
3. ADU Height Standards.
4. ADU additions do not trigger sprinkler upgrades in the primary dwelling.
5. State‑Exempt ADUs Not Subject to Town design or development standards.
6. ADUs must connect to sewer if within 200 ft or subject to a reimbursement agreement, except when gravity flow is not feasible. State‑exempt ADUs generally cannot be required to connect unless built with a new primary dwelling.
7. Application Denial Procedures- Town must return a full set of comments explaining how to remedy deficiencies.
8. Pathway to Compliance (Section 10‑1.1409).

This is the first reading. Adoption is scheduled for April 2026.

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9. NEW BUSINESS

A. Receive 2025-26 Mid-Year Financial Report and Adopt Resolution Approving Mid-Year Budget Appropriations
The purpose of the mid-year financial update is to review the Town’s financial progress through December 31, 2025, and identify any changes to the forecast that require attention.

Overall Fiscal Position
• The Town remains financially stable with strong reserves and controlled spending.
• FY 2024-25 ended with a $18.4M General Fund balance, including $4.4M unassigned (≈24% of expenditures).
• Midyear FY 2025-26 revenues and expenditures are tracking close to budget.

FY 202425 Year End Highlights
Revenues: $17.74M (0.3% above budget)
• Strength: interest earnings, franchise fees, charges for services
• Weakness: licenses & permits (28.4%) due to reduced development activity
Expenditures: $15.73M (13% below budget)
• Underspending across all departments due to vacancies, lower development activity, and reduced contract services.

FY 2025-26 MidYear Snapshot
• General Fund Revenues (38% of budget; $7.06M) - Property tax on track; Interest earnings outperforming; Licenses & permits and charges for services below pace

General Fund Expenditures (49% of budget; $8.9M)
Cost Recovery - significantly below budget
Sewer Fund - projected on target for revenue and expenses.

Recommended Budget Amendments
Operating Adjustments
Revenues: Net +$55,093
Expenditures: +$280,000
General Fund Net Impact: –$280,000 (adjustment to unallocated fund balance)
 

Capital Program Adjustments
Revenues: +$335,736
Expenditures: +$135,000
Net Capital Impact: +$200,736

Mechanical Electrical Plumbing (MEP) Permit Refund Liability
Additional refunds processed: $271,000
Potential total refunds: up to $870,000
Refunds reduce unallocated general fund balance

FISCAL IMPACT
The proposed mid-year adjustments result in:
• Total Revenue Increase (All Funds): $390,829
• Total Expenditure Increase (All Funds): $415,000
• Net Positive Impact (All Funds): ($24,171)

For the General Fund:
• Revised Revenues: $18,536,300
• Revised Expenditures: $18,433,369
• Net Operating Impact: ($280,000)
The Town remains in a stable fiscal position following these adjustments

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Key Risks & Pressures
 Continued decline in development-related revenues
 Rising legal costs (notably Builder’s Remedy case)
 Significant remaining MEP refund exposure
 Planning cost recovery remains structurally low

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B. Discussion on Next Steps for the Green Sheets Ballot Initiative Measure

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The “Green Sheets” contain the foundation principles on which the Town was incorporated in 1956, a set of values printed on green paper that guided residents’ push for local control, low density zoning, and preservation of the semirural environment. Some residents believe these principles need to be protected through a ballot measure.

A Timeline prepared by City Attorney shows the statutory duration and dates for required meetings and filings to support a Green Sheet Initiative Measure by both a Citizen-Initiated and Council-Initiated local ballot measure. To qualify for the ballot, a citizen initiative requires either 10% (next regular election) or 15% (to force a special election) of the roughly 6900 registered voters. A council-initiated ballot measure requires just a simple majority vote of the council.

The Timeline identifies CEQA requirements, if necessary, under the council-initiated process. It appears CEQA review is not required before the citizen-initiated measure goes on the ballot but may be required before a council-initiated measure.

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9. REPORTS FROM COMMITTEES, SUB-COMMITTEES, AND COUNCILMEMBERS ON OUTSIDE AGENCIES

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10. STAFF REPORTS

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A. City Attorney

B. City Clerk

C. Community Development Director

D. Finance Director

E. Public Works Director

F. City Manager- Update on Emergency Management for the Town of Los Altos Hills​​

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11. COUNCIL INITIATED ITEMS

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A. Consideration of a Town of Los Altos Hills Poet Laureate (Council Member Swan)

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12. ADJOURN

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