Monte Sereno Awards Two-Year Paving Contract Using Dedicated Street Funds

Monte Sereno is paving two years' worth of streets at once, betting that a bigger job brings better pricing, and it isn't using any general fund money to do it. On Oct. 20, 2026, the City Council voted 5-0 twice to reject a non-responsive bid and award the contract. Members also scaled back the Better Streets Commission and began planning a December fire safety event after the city's fatal North Avenue fire.

• Paving contract awarded 5-0: base bid plus alternates C–G, with work finished before Thanksgiving
• Better Streets Commission will meet as needed under Ordinance NS-252, and its Youth Commission seat is eliminated
• Communications debate: postcards, metrics and pilots weighed against internal control priorities
• Quarterly report accepted 5-0 as permit revenue dips below last year's pace
• December home fire safety event planned after the first fire fatality the mayor recalls in 47 years

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Two Years of Paving, One Contract

The basics: The city picks streets using a pavement condition report and received an updated 2026 version this spring. This project combines the 2025-26 and 2026-27 work. Bids were due Sept. 21 on a base bid plus nine alternates. Alternates are optional add-on segments the council can include or drop depending on price.

Why it matters: Combining two years of work is designed to get better pricing. The entire job runs on dedicated street money.

"There is no additional general fund money used for this project each year," said Diana Perkins, City Manager. Even with the full contingency spent, about $100,000 in dedicated funds would remain.

Where things stand: The item was pulled from the consent calendar for separate discussion. Staff recommended declaring the Lunis Grading and Paving bid non-responsive. They also recommended awarding the base bid plus alternates C, D, E, F and G. Staff left out two Eaton Lane alternates and the Barry Lane and Danielle Place alternates because of cost. The city attorney advised that the non-responsive determination had to be voted on first, so the council took two separate votes.

Councilmembers asked about budget, timing, flooding and funding:

• Timing: Work starts within a few weeks and should be done before Thanksgiving.
• Vineland Court: Members asked why a street with a high condition rating made the list. Perkins explained it will get a slurry seal, a thin protective coating, to keep it from degrading further. Members also raised flooding on that street.
• Condition report: The Metropolitan Transportation Commission paid the full cost of the report this year.
• SB 1: Vice Mayor Lisa Shannon asked about the annual resolution tied to SB 1, California's gas tax funding for road repair. Staff said the resolution will still come to the council each June.

Decisions and stakeholder impacts: Councilmember Bryan Mekechuk made both motions.

• Vote 1, declaring the Lunis bid non-responsive: For: 5 (Allan, Shannon, Mekechuk, Craig, Toren), Against: 0, Absent: 0.
• Vote 2, adopting the resolution: The resolution accepts the lowest responsive bid and authorizes the city manager to award the base bid plus alternates C–G. For: 5, Against: 0, Absent: 0.

Residents on the selected streets get repaving this fall. Residents of Eaton Lane, Barry Lane and Danielle Place will have to wait for a future cycle.

What's next: Construction begins in the coming weeks. The SB 1 resolution returns in June.

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Reaching Residents: Pilots, Postcards and Priorities

Why it matters: Officials worry that residents don't know about city newsletters and alerts. The council wants outreach that is low-cost and measurable rather than new unbudgeted spending.

Where things stand: Today the city relies on single-subject emails, social media posts and a printed newsletter twice a year. Perkins recapped the council's Aug. 18 discussion, and no action was taken.

Councilmembers offered competing approaches:

• Councilmember Ken Toren favored starting small. He said he had spoken with MyGovTools. "I'm a big believer of before you jump into these kind of things, just do some pilot testing and see what works," said Toren.
• Shannon backed two extra postcards with QR codes that would steer residents toward email signups and social media. "I would be interested in having staff pursue doing these additional 2, just, you know, little postcards," said Lisa Shannon, Vice Mayor.
• Councilmember Burton Craig pointed to local volunteer help. "Our local community TV station, KCAT, has established a team called the KCAT Go Team," said Burton Craig, Councilmember. He also suggested a website focus group and a city-specific 5x7 card.
• Toren pressed for accountability. "What metrics are we using to determine the success of these efforts," asked Ken Toren, Councilmember.

The other side: Mekechuk called the ideas nice-to-haves. "I think the number one thing we need to do is to address all the issues that were on the memorandum of internal control," said Bryan Mekechuk, Councilmember. Outside auditors typically issue this type of memo to flag weaknesses in financial controls.

Decisions and stakeholder impacts: Perkins pointed to tools the city already has, including a financial transparency page and a "budget at a glance" brochure. The split is about sequencing, not goals. Residents who rarely engage with city channels stand to benefit if outreach expands. Staff time, however, is limited and competes with audit follow-up.

What's next: No direction was formalized.

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Better Streets Commission Moves to As-Needed Meetings

Why it matters: The commission was formed in 2017 to advise on street design, operation and maintenance. It has rarely met since the city hired a full-time engineer: twice last year and not at all this year.

"Staff does recommend that the meeting schedule be modified for the Better Streets Commission to allow them to meet as needed rather than quarterly," said Perkins. Ordinance NS-252 also removes the Youth Commission's ex officio seat.

The other side: Mekechuk argued the commission should evolve rather than fade. He said it should take on more emphasis on the safety and walkability of streets. He cited resident concerns about two locations:

• A crosswalk on Highway 9, which falls under Caltrans' jurisdiction
• A request for speed bumps on Gaines Avenue

A crosswalk email was the meeting's only public input. No one spoke during oral communications.

Decisions and stakeholder impacts: Perkins said traffic-calming policy changes and grant applications will still go through the commission. Toren said a safety focus would help the city compete for grants.

The ordinance passed with the reading waived. For: 5 (Allan, Shannon, Mekechuk, Craig, Toren), Against: 0, Absent: 0.

Residents seeking traffic calming should note the change: the commission will no longer meet on a regular schedule, so requests may wait until it is convened.

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Permit Revenue Cools in Quarterly Report

"We have less revenue in the last 3 months than we did at the same range last year," said Perkins. Permitting activity is returning to average levels, while the inspection workload remains heavy.

Where things stand: Most permit fees are paid when a permit is issued, and construction typically runs 12 to 24 months. That means inspection work outlasts the revenue that funds it.

• Fee schedule: The council adopts it each June with cost-of-living adjustments.
• Website traffic: The city site draws about 2,000 visits a month. Pages on ADUs and building permits are the most visited.
• Council goals: Their status will now be reported every quarter.

Mekechuk asked about the best timing for quarterly reports.

Decisions and stakeholder impacts: The council accepted the report. For: 5, Against: 0, Absent: 0. Lower permit revenue paired with a steady inspection workload is a budget pressure to watch ahead of the June fee update.

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After a Fatal Fire, a Push to Connect Neighbors

Why it matters: The meeting opened with a moment of silence for victims of the North Avenue fire. Mayor Lon Allan said it was the first fire fatality in his 47 years in the city. "I think the council wants to thank our Youth Commissioner for having the sensitivity to suggest that we start the meeting with a moment of silence," said Lon Allan, Mayor.

Where things stand: Perkins said the city will hold a home fire safety event at City Hall in the first two weeks of December with Supervisor Margaret Alvarez and the fire and police departments. Toren urged actionable steps, such as smoke alarm checks.

Councilmembers floated several future agenda items:

• Mekechuk proposed an item on building neighborhood communities beyond neighborhood watch.
• Craig suggested neighborhood gatherings for the city's 70th birthday in 2027. He said residents could "host, for lack of a better word, a Tupperware party."
• Toren proposed an ad hoc committee for the anniversary. He also asked for an item on replacing a member of the ad hoc auxiliary committee.

Water bills: "I've gotten more resident complaints about high water bills than any other subject," said Allan. He said his own annual bill runs $8,000 to $10,000. Allan and Shannon gave San Jose Water's new CEO sample resident bills.

"When you get past the 2nd tier, your price per CCF, cubic foot, jumps, almost doubles," said Shannon. A CCF is 100 cubic feet of water, the unit used in tiered rates. Under these rates, large lots pay steeply more once they pass the second tier.

Craig asked about well water. The city attorney said county, state and Valley Water requirements apply and the city does not regulate wells. No action was taken.

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Minor Items

• Consent items 1–3 passed by roll call; item 4 was pulled for separate discussion.
• The SAVCA fundraising dinner raised $54,000, well above the hoped-for $30,000 over expenses, Allan said.
• The county library plans to spend close to $40M on content over five years and has opened the Nest annex, Craig reported.
• A regional binge drinking task force cited a 22% binge drinking rate among Los Gatos High School 11th graders, Toren reported.
• Closing comments touched on moving the city to a .gov domain and adding plaques for city artwork.

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Looking Ahead

Paving should be complete before Thanksgiving. The home fire safety event comes in early December. Both the SB 1 resolution and the fee schedule return in June.