In a 4-1 vote, the Monte Sereno City Council agreed to set a public hearing date so all sides can further discuss the annexation issue. Councilwoman Barbara Nesbet voted in the minority. The date was purposely left open so the city can assess the future of county money it hopes to receive later. Monte Sereno's support of incorporating county pockets was a condition for receiving county money.

Since last November, the city council has been weighing whether to add three neighboring county areas, which would affect nearly 160 property owners. About 115 of them had signed a petition that gave the council a resounding "no" to being incorporated.

At the March 21 council meeting, a committee, comprised of council members and city and county residents, proposed a compromise that would make county homeowners more open to being annexed. The proposition was for the city to create a separate zoning category for the pockets, which would permit county residents to build larger homes than what is now allowed in the city.

"We would protect our property rights and the beauty of the community for all," said county resident and committee member Tom DiStefano.

The committee is seeking the ability to build homes up to 11,000 square feet on an acre lot, while city rules cap homes at 6,000 square feet on a lot the same size. The new zoning district would be called Monte Sereno Hills.

"It would increase the property values overall in the city," DiStefano said.

Six community members spoke up during the meeting. Wanda Alexander said she is in favor of annexation for the benefits of being represented.

"It's for our protection. We can come to you and be heard," she said.

Jean Bevans opposed annexation, saying he feared extra costs of road maintenance would be passed on to residents, and ultimately, to him.

After listening to the public's comments, council members reflected on the merits of the committee's proposal, but they weren't swayed by the presentation. A separate zoning class would require a change to the city's General Plan, they said.

"I think we need to treat everyone the same," Councilman Curtis Wright said.

Councilman Erin Garner said he was in favor of annexation only because of its connection to the Tax Equity Allocation money that Monte Sereno hopes to get. The city and Santa Clara County have struck a deal that would mean Monte Sereno can receive almost $300,000 a year in TEA funds from the county. This money originally belonged to Monte Sereno. In return, the city agreed to support the annexation of county areas.

"I might have to support it for the good of the city--$300,000 is big," Garner said.

However, Nesbet disliked the idea of annexation. Because the state legislators still need to OK the TEA transfer, she said, the money is not a guarantee for Monte Sereno and city leaders shouldn't count on it.

"The TEA is a big unknown," she said.

She added that bringing more residents into the city may put a strain on city staff. More residents mean more expenses, she said.

"It's not good for the city," she said.

County resident Tom Lofgren was frustrated TEA money was mixed into the annexation question.

"It's a pure bribe," he said. "It's ridiculous that they're joined. It should be independent of annexation."

DiStefano was disappointed at the council's rejection of creating a hillside community within Monte Sereno.

"We worked hard on this. You didn't listen to a word we said. This was just an empty exercise," he said.

However, Mayor Mark Brodsky said he sympathized with homeowners who feel they are losing their property rights. He said the committee's work will not be wasted.

"We want somehow, some way to recognize the work that people have done and see how we can incorporate it," he said after the meeting. "We're moving the ball forward, but we're not saying how many yards."

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