Agenda, regular meeting — Campbell City Council, May 17, 2022 (part 1 of 2)

City Council Agenda
City of Campbell, 70 N. First St., Campbell, California

NOTE: To protect our constituents, City officials, and City staff, the City requests all members of the public follow the guidance of the California Department of Health Servi ces', and the County of Santa Clara Health Officer Order, to help control the spread of COVID-19.

Additional information regarding COVID-19 is available on the City's website at www.campbellca.gov.

This City Council Regular meeting will be conducted in person as well as telecommunication and is compliant with provisions of the Brown Act. Councilmember Lopez will attend virtually from 407 Swift Avenue, Durham, North Carolina , 27705. A quorum of the City C ouncil wil l be in attendance at the City of Campbell City Hall.

The City Council meeting will be live -streamed on Channel 26, the City's website and on YouTube https://www.youtube.com/user/CityofCampbell for those who only wish to view the meeting.

Those members of the public wishing to provide public comment virtually are asked to register in advance at: https://www.campbellca.gov/signup. After registering, you will receive a confirmation email containing information about joining the meeting. Members of the public may attend the meeting in person at Campbell City Hall - Council Chambers.

Public comment will also be accepted via email at [email protected] prior to the start of the meeting. Written comments will be posted on the website and distributed to the Council. If you choose to email your comments, please indicate in the subject line “FOR PUBLIC COMMENT” and indicate the item number.

REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, May 17, 2022 7:30 p.m.

City Hall Council Chamber – 70 N. First Street

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

SPECIAL PRESENTATIONS AND PROCLAMATIONS

1. Presentation by the Youth Commission on Completed Events and Activities for the 2021-2022 Term
Recommended Action: That the City Council receive a presentation from the Youth Commission on their 2021-2022 completed events and activities.

2. Proclamation Recognizing Peace Officers Me morial Day and Declaring the Week of May 11-17, 2022 as National Police Week
Recommended Action: That the City Council recognize May 15, 2022, as “Peace Officers Memorial Day”; and May 11-17, 2022 as “National Police Week” to honor those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others.

3. Proclamation Declaring the Week of May 15 -21, 2022 as National Public Works Week
Recommended Action: That the City Council declare the week of May 15 -21, 2022, as National Public Works Week in the City of Campbell.

4. Proclamation Declaring the Month of May 2022 as “Affordable Housing Month” in the City of Campbell
Recommended Action: That the City Council proclaim the mont h of May 2022 as “Affordable Housing Month” in the City of Campbell.

COMMUNICATIONS AND PETITIONS

ORAL REQUESTS
NOTE: This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda. Persons wishing to address the Council are requested, but not required to complete a Speaker’s Card. Speakers are limited to two (2) minutes. The law generally prohibits the Council from discussion or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Requests.

COUNCIL ANNOUNCEMENTS

CONSENT CALENDAR
NOTE: All matters listed under consent calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of City Council, City staff, or a member of the public.

Any person wishing to speak on any item on the consent calendar should ask to have the item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears.

5. Minutes of City Council Special Meeting of April 20, 2022 Recommended Action: Approve the Special Meeting minutes of April 20, 2022.

6. Minutes of City Council Study Session Meeting of April 25, 2022 Recommended Action: Approve the Study Session Meeting minutes of April 25, 2022.

7. Minutes of City Council Executive Session Meeting of May 3, 2022 Recommended Action: Approve the Executive Session Meeting minutes of May 3, 2022.

8. Minutes of City Council Regular Meeting of May 3, 2022 Recommended Action: Approve the Regular Meeting minutes of May 3, 2022.

9. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $1,104,564.91.

10. Extension of Declaration of Local Emergency (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution extending the March 15, 2022 City Council proclamation declaring the existence of a local emergency resulting f rom community spread of COVID -19 another sixty (60) days until July 29, 2022.

11. Accept Donation from Joan Evans Bohnett Living Trust (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution accepting the donation of $135 ,736.66 from the Joan Evans Bohnett Living Trust and approve a budget adjustment to recognize the donation in Fiscal Year 2022.

12. Approve Appointment to the Bicycle and Pedestrian Advisory Committee (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution appointing Renee Small t o the Bicycle and Pedestrian Advisory Committee (BPAC) for a term expiring August 2024.

13. Approval of Transportation Development Act (TDA) Article 3 Grant Application for Fiscal Year 2022/23 (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a Resolution authorizing the Public Works Director to submit a Grant Application to the Santa Clara Valley Transportation Authority (VTA) for $56,869 in Transportation Development A ct (TDA) Article 3 Guarantee Funds for the Campbell Bicycle and Pedestrian Project Fiscal Year 2022/23.

14. Resolution Commending Sergeant David Mendez for 25 Years of Service to the City of Campbell (Resolution/Roll Call Vote)
Recommended Action: That t he City Council adopt a Resolution commending Sergeant David Mendez for his 25 Years of Service to the City of Campbell.

15. Resolution Commending Sergeant David Livingston for 18 Years of Service to the City of Campbell (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution comm ending Sergeant David Livingston for his 18 Years of Service to the City of Campbell.

PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES
NOTE: Members of the public may be allotted up to two (2) minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of five (5) minutes for opening statements and up to a total of three (3) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.

16. Public Hearing to Consider a City -Initiated Zoning Code Text Amendment (PLN-2021-193) to Amend the Side -Yard Setback Requirements for Properties Located Within the M -1 (Light Indust rial) and C -2 (General Commercial) Zoning Districts (Ordinance/Roll Call Vote) Recommended Action: That the City Council introduce an Ordinance amending Chapter 21.10 of the Campbell Municipal Code revising the side -yard setback requirements for properti es located within the M -1 (Light Industrial) and C -2 (General Commercial) Zoning Districts.

17. Introduction of Ordinance Adding Chapter 6.19 and Amending Sections

6.10.020 and 6.10.170 of the City of Campbell Municipal Code to Implement AB 1276 Single-Use Foodware Accessories and Standard Condiments, and Enforce CALGreen Building Standards Code with the City’s Administrative Process (Ordinance/Roll Call Vote)

Recommended Action: That the City Council introduce and Ordinance adding Chapter 6.19 and amendi ng Sections 6.10.020 and 6.10.170 of the City of Campbell Mu nicipal Code implementing new state legislative requirements for single-use foodware accessories and standard condiments, and establishing an enforcement process for CALGreen Building Code.

18. Introduction of Proposed Fiscal Year (FY) 2023 Operating Budge t and 2023 - 2027 Five-Year Capital Improvement Plan (CIP)
Recommended Action: That the City Council review the Proposed Fiscal Year (FY) 2023 Operating Budget and 2023 -2027 Capital Improvement Plan (CIP) as presented; provide direction to staff to proce ed with finalizing the budget; and establish June 21, 2022 as the date for a public hearing and adoption of the FY 2023 Operating Budget and CIP, as well as the Gann Appropriations Limit.

NEW BUSINESS

19. Resolution Authorizing the Second Issuance and Sale of General Obligation Bonds in an Aggregate Principal Amount Not to Exceed $30,000,000 (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution authorizing the issuance of $30,000,000 Election of 2018 General Obligation B onds, Series 2022; approve the form of a Preliminary Official Statement; and authorize certain other actions in connection therewith.

UNFINISHED BUSINESS

COUNCIL COMMITTEE REPORTS

20. Council Committee Reports
Recommended Action: That the City Council re port on activities from their committee assignments.

ADJOURN
IMPORTANT NOTICE: Materials related to an item on this agenda submitted to the City Council after distribution of the agenda packet are available for public inspection with the agenda packet in the lobby of City Clerk’s Office, 70 N. First Street, Campbell, CA 95008, during normal business hours. These materials will also be available on the City website at https://www.ci.campbell.ca.us/agendacenter with the agenda packet following the last item of the agenda, subject to staff’s ability to post the documents prior to the meeting. All documents not posted prior to the meeting will be posted the next business day.

In compliance with the Americans with Disabilities Act, listening assistive devices are available for all meetings held in the City Council Chambers. If you require accommodation, please contact the City Clerk’s Office, (408) 866-2117, at least one week in advance of the meeting.

City
Council
Report
TITLE: Presentation by the Youth Commission on Completed Events and Activities for the 2021-2022 Term

RECOMMENDED ACTION
That the City Council receive a presentation from the Youth Commission on their 2021 - 2022 completed events and activities.

BACKGROUND
The Youth Commission is a twelve -member advisory body to the City Council that serves to identify the youth and teen community needs and prov ide channels for the expression of those needs. The commissioners represent the diverse population of Campbell in grades eight through twelve who attend various schools including Rolling Hills Middle School , Del Mar High School , Prospect High School , Westm ont High School, and more. Central goals of the commission often focus on mental health support, raising awareness of social justice issues, and supporting academic aspirations.

DISCUSSION
The 2021 -2022 Youth Commission term is coming to an end. The mem bers of the Youth Commission have developed a work plan and ran several successful events this term that connected local partners and engaged with youth in the Campbell community.

Chair Amelie Arango and Vice -Chair Emily Tovar will be joining the Council m eeting to provide a brief visual presentation of the events from their 2021 -2022 term and look forward to receiving City Council comments.

FISCAL IMPACT
There is no fiscal impact associated with acceptance of this report.

Prepared by:

Item: 1
Category: SPECIAL PRESENTATIONS

AND PROCLAMATIONS
Meeting Date: May 17, 2022
1 Packet Pg. 5
Julie Pieracci, Recreation Specialist
Youth Commission Term Review Page 2 of 2
Reviewed by:

Natasha Bissell, Recreation Services
Manager
Approved by:

Brian Loventhal, City Manager
1 Packet Pg. 6

City
Council
Report

TITLE: Proclamation Recognizing Peace Officers Memorial Day and Declaring the Week of May 11-17, 2022 as National Police Week

RECOMMENDED ACTION

That the City Council recognize May 15, 2022, as “Peace Officers Memorial Day”; and May 11 -17, 2022 as “National Police Week” to honor those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others.

BACKGROUND

In 1962, President John F. Kennedy proclaimed May 15 th as National Police Officer Memorial Day and the week in which May 15 th falls, as National Police Week.

Established by a joint resolution of Congress in 1962, National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others. In 2022, National Police Week will be observed from May 11th through May 17th.

DISCUSSION

According to the National L aw Enforcement Officers Memorial Fund, so far this year, ninety-one ( 91) police officers have died in the line of duty and s even police officers have given their lives in the service of the citizens of California. In 2021, thirty-three (33) police officers died in the line of duty in California alone.

In his Proclamation, President Kennedy state d, in part, “from the beginning of this Nation, law enforcement officers have played an important role in safeguarding the rights and freedoms which are guaranteed by the Constitution and in protecting the lives and property of our citizens…I invite State and local government, patriotic, civic, and educational organizations, and the people of the United States generally, to observe Peace Officers Memorial Day and National Police Week.”

By lighting the water tower blue and resolving to recognize Peace Officers Memorial Day and National Police Week, the City of Campbell (City) will be showing its gratitude towards the officers of the Campbell Police Department who stri ve every day to safeguard the freedoms and protect the lives and property of the citizens of Campbell.

The City will also be recognizing all those who put on a law enforcement uniform to Item: 2
Category: SPECIAL PRESENTATIONS

AND PROCLAMATIONS
Meeting Date: May 17, 2022
2 Packet Pg. 7
Proclamation of Law Enforcement Memorial Day/ National Police Week Page 2 of 2 serve their communities throughout this nation; and, more importantly , will be honoring those who died in that service.

FISCAL IMPACT

There is no fiscal impact associated with the adoption of this proclamation.

Prepared by:

Ian White, Police Captain

Reviewed by:

Gary Berg, Police Chief

Approved by:

Angelique Gaeta, Assistant City
Manager

Attachment:
a. Proclamation - National Police Week 2022
2 Packet Pg. 8

PROCLAMATION
OF THE

MAYOR OF THE CITY OF CAMPBELL

WHEREAS, the United States Congress and President of the United States have designated May 15, 2022, as “National Police Officers Memorial Day” and May 11-17, 2022, as “National Police Week”; and

WHEREAS, members of the Campbell Police Department strive e very day to safeguard the freedoms and protect the lives and property of the citizens of Campbell; and

WHEREAS, the Campbell Police Department provides outstanding police services to the community; and

WHEREAS, 91 law enforcement officers throughout the nation have lost their lives in the service to their communities in 2022; and

WHEREAS, the City of Campbell ask s all citizens to join in honoring the police officers, past and present, who have played an important role in safeguarding the rights and freedoms which are guaranteed by the constitution and in protecting the lives and property of Campbell residents.

NOW, THEREFORE, I, Paul Resnikoff, Mayor, of the City of Campbell, do hereby recognize the week of May 1 1-17, 2022, as “National Police Week” and observe May 15, 2022, as “Peace Officer Memorial Day” in honor of those who have lost their li ves in service to their communities, and direct that the Campbell Water Tower be lit blue in honor of “Peace Officer Memorial Day”.

WITNESS MY HAND AND SEAL OF THE CITY OF CAMP BELL this 17th day of May, 2022.

___________________________________
Paul Resnikoff
Mayor of the City of Campbell

2.a
Packet Pg. 9
Attachment: Proclamation - National Police Week 2022 (Proclamation of Law Enforcement Memorial Day/ National Police Week)

City
Council
Report

TITLE: Proclamation Declaring the Week of May 15 - 21, 2022 as National Public Works Week

RECOMMENDED ACTION

Issue a proclamation declaring the week of May 15 - 21, 2022, as National Public Works Week in the City of Campbell.

BACKGROUND

In 1960 the American Public Works Association instituted a public education campaign to draw attention to the importance of Public Works in the community. Pub lic Works professionals are charged with critical responsibilities in connection with the planning, design, construction, maintenance and operation of numerous public works projects, programs, and facilities. These accomplishments are important in building and maintaining strong communities and are particularly noteworthy in relation to the limited availability of labor and financial resources.

DISCUSSION

National Public Works Week is observed each May to raise the public’s awareness of Public Works issu es and activities; and to recognize the contributions made by Public Works professionals who are dedicated to improving the quality of life and building communities for current and future generations.

This year marks the 62nd annual National Public Works Week and the theme for 2022 is “READY AND RESILIENT .” This theme emphasizes the superheroes that lie within each and every public works professional. Always READY to serve their communities, and RESILIENT as ever in their abilities to pick themselves up o ff the ground after encountering challenges.

Public Works staff continues to work diligently to keep the City’s streets, parks, and other public facilities in a safe and well -maintained condition, thus helping to maintain a sense of civic pride and positive morale. Additionally, staff continues to design, manage, and implement projects that provide value to the community, contribute to a more sustainable environment, and increase the overall quality of life in Campbell.

FISCAL IMPACT
Item: 3
Category: SPECIAL PRESENTATIONS

AND PROCLAMATIONS
Meeting Date: May 17, 2022
3 Packet Pg. 10
Declaring the Week of May 15 - 21, 2022 National Public Works Week Page 2 of 2 There is no fiscal impact associated with this declaration.

Prepared by:

JoAnna Thomason, Executive Assistant
Reviewed by:

Todd Capurso, Director of Public Works
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Proclamation - Public Works Week 2022
3 Packet Pg. 11

PROCLAMATION
OF THE

MAYOR OF THE CITY OF CAMPBELL

WHEREAS, in 1960 the American Public Works As sociation instituted a public education campaign to draw attention to the importance of Public Works in community life; and,

WHEREAS, Public Works professio nals focus on infrastructure, facilities, and services that are of vital importance for sustainable and resilient communities and provide for an increased quality of life for the City; and

WHEREAS, these infrastructure, facilities and services could not be provided without the dedicated efforts of Public Works professionals, who are engineers, managers and employees at all levels of government and the private sector, who are responsible for maintaining, rebuilding, improving and protecting our nation’s transportation, water supply, water treatment and solid waste systems, public buildings, and facilities essential for our residents; and,

WHEREAS, the quality and effectiveness of these facilities, as well as their planning, design, construction and mainten ance is vitally dependent upon the efforts and skill of Public Works officials; and

WHEREAS, it is in the public interest for the residents, community groups, and civic leaders to gain knowledge of and to maintain an ongoing interest and understanding of the importance of Public Works functions, services, and programs in their respective communities; and,

WHEREAS, the year 2022 marks the 62nd annual National Public Works Week sponsored by the American Public Works Association.

NOW, THEREFORE, I, Paul Resnikoff, Mayor, of the City of Campbell, do hereby proclaim the week of May 15 - 21, 2022, as National Public Works Week within the City of Campbell and calls upon all residents and civic organizations to acquaint themselves with the issues involved in pro viding Public Works ser vices and recognizes the contributions which all Public Works employees make every day to ensure our health, safety, comfort and quality of life.

WITNESS MY HAND AND SEAL OF THE CITY OF CAMP BELL this 17th day of May, 2022.

___________________________________
Paul Resnikoff
Mayor of the City of Campbell

3.a
Packet Pg. 12
Attachment: Proclamation - Public Works Week 2022 (Declaring the Week of May 15 - 21, 2022 National Public Works Week)

City
Council
Report

TITLE: Proclamation Declaring the Month of May 2022 as “Affordable Housing Month” in the City of Campbell

RECOMMENDED ACTION

That the City Council proclaim the month of May 2022 as “Affordable Housing Month” in the City of Campbell.

BACKGROUND

Affordable housing is one of the cornerstones of democracy and part and parcel of the American Dream. All communities thrive when families have a safe, stable and affordable place to call home . Unfortunately, each year thousands of Silicon Valley families struggle to find an affordable place to call “home”.

The COVID-19 pandemic both highlighted existing housing instability and the homelessness crisis, and has further increased the need for affordable housing during the recovery.

The affordable housing community , including SV@Home, in collaboration with the City of Campbell, concentrates efforts on the production, protection, and preservation of affordable housing options for bay area residents.

May is Affordable Housing Month in the Silicon Valley. During the entire month of May, SV@Home convenes the region’s housing partners to host dozens of virtual workshops, webinars, and creative community engageme nt opportunities to educate, activate, and engage advocates and the general public around the housing challenges facing our communities and the solutions we can pursue together.

The theme this year is “Reimagining Home”, inviting participants to think ou tside of the box, deepen their knowledge, and join together to shift the collective perspective on what building equitable, inclusive, and restorative communities mean.

The City of Campbell encourages all citizens, legislators, and advocates to collaborat e in finding viable, creative solutions to the current housing crisis in order to meaningfully increase housing affordability throughout the bay area.

FISCAL IMPACT
Item: 4
Category: SPECIAL PRESENTATIONS

AND PROCLAMATIONS
Meeting Date: May 17, 2022
4 Packet Pg. 13
Proclamation Declaring the Month of May Affordable Housing Month Page 2 of 2

There is no fiscal impact associated with this action.

Prepared by:

Dusty Christopherson, City Clerk

Approved by:

Angelique Gaeta, Assistant City
Manager

Attachment:
a. Proclamation - Affordable Housing Week 2022
b. Affordable Housing Month Flyer
4 Packet Pg. 14

PROCLAMATION
OF THE

MAYOR OF THE CITY OF CAMPBELL

WHEREAS, affordable housing is one of the cornerstones of democracy and part and parcel of the American Dream; and

WHEREAS, our communities thrive when all families have a safe, stable and affordable place to call home; and

WHEREAS, affordable housing is a basic human right and yet, each year, thousands of Silicon Valley families and individuals struggle to find an affordable home in one of the most expensive housing markets in the nation; and

WHEREAS, the affordable housing community, in collaboration with the City of Campbell, concentrates efforts on the production, protection, and preservation of affordable housing options for bay area residents; and

WHEREAS, based on 2019 Point -in-Time count numbers, on any giv en night in Santa Clara County, more than 9,706 individuals go unhoused; and

WHEREAS, the COVID -19 pandemic both highlighted existing housing instability and the homelessness crisis, and has further increased the need for affordable housing during the recovery, that process of recovery will be gradual; and

WHEREAS, many organizations throughout Silicon Valley are dedicated to providing safe, stable, permanent, and affordable hous ing to all members of the community and ar e collaboratively work ing to bring the need for affordable housing to the forefront of discussion in our region; and

WHEREAS, these organizations have partnered with local agencies and community member s to organize Affor dable Housing Month to encourage the sharing of best prac tices, opportunities , and solutions to provide affordable housing that is the right of all individuals during these unprecedented times;

NOW, THEREFORE, I, Paul Resnikoff, Mayor, of the City of Campbell, do hereby proclaim the Month of May 2022 as Affordable Housing Month in the City of Campbell, and encourage all citizens, legislators, and advocates to collaborate in finding viable, creative so lutions to the current housing crisis in order to meaningfully increase housing affordability throughout the bay area.

WITNESS MY HAND AND SEAL OF THE CITY OF CAMP BELL this 17th day of May, 2022.

___________________________________
Paul Resnikoff
Mayor of the City of Campbell

4.a
Packet Pg. 15
Attachment: Proclamation - Affordable Housing Week 2022 (Proclamation Declaring the Month of May Affordable Housing Month) 5/4/22, 5:51 PM Affordable Housing Month Flyer.webp (1400×1854) file://honouliuli/profile_data$/dustyc/Desktop/Affordable Housing Month Flyer.webp 1/1

4.b
Packet Pg. 16
Attachment: Affordable Housing Month Flyer (Proclamation Declaring the Month of May Affordable Housing Month)

CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California

SPECIAL MEETING OF THE CAMPBELL CITY COUNCIL
Wednesday, April 20, 2022 – 6:00 p.m.

City Hall Council Chamber – 70 N. First Street

This City Council Special meeting was duly no ticed pursuant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).

CALL TO ORDER

The City Council of the City of Campbell convened this day in a special meeting in the City Hall Council Chamber, 70 N. First St., Campbell, California.

ROLL CALL

Attendee Name Title Status
Paul Resnikoff Mayor Present
Anne Bybee Vice Mayor Present
Elizabeth 'Liz' Gibbons Councilmember Present
Susan M. Landry Councilmember Present
Sergio Lopez Councilmember Present

PUBLIC COMMENT

There were no public comments.

UNFINISHED BUSINESS

1. Review Campbell's Plan for Housing – Objectives, Policies and Programs (PLN-2021-12)
Recommended Action: That the City Council review existing and proposed objectives, policies, and programs, and provide direct ion on which should be revised or added as part of “Campbell’s Plan for Housing ” and the City’s Envision Campbell General Plan Update.

Community Development Director Rob Ea stwood introduced Staff Report dated April 20, 2022 and reviewed the presentation o utline, noting this is Council’s first review of the proposed objectives, policies, and programs for Campbell’s Plan for Housing which will be available for public review du ring Spring 2022, with a final completion deadline of January 2023.

Brittney Ben dix, M -Group Representative, reviewed the City’s current Housing Element progress, the current Regional Housing Needs Assessment (RHNA) 5 Packet Pg. 17
Minutes Acceptance: Minutes of Apr 20, 2022 6:00 PM (CONSENT CALENDAR)

Minutes of April 20, 2022 City Council Meeting Page 2
production, and the City’s community demographics which indicate a mismatch of available housing with the needs of the c ommunity. Ms. Bendix reviewed the community engagement efforts including community meetings, focus groups, and surveys. Ms. Bendix reviewed top comments including the need for more affordable housing projects, accessory dwelling units, on-site care facilities, rising rental rates, increase in resilient p olicies, senior population needs and those on fixed incomes and female-headed household needs.

Ms. Bendix reviewed the prioritization structure of the housing policies and programs presented, noting a high priority taking 1-2 years to complete, medium priority taking 3 -5 years to complete, and low priority taking 6 -8 years to complete.

Ms. Bendix reviewed Objective #1, improving housing affordability in Campbell, noting the high priorities of modificatio ns to Campbell’s inclusionary ordinance, establishment of an affordable housing overlay zone (AHOZ), regulation of housing unit sizes to increase affordability, investigating the use of city -owned land for affordable housing projects, developing objective standards, and allowing appropriate waivers for a ffordable housing developments. Objective #2, preserving existing housing/affordable housing stock (no high priorities).

Objective #3, removing government constraints noting the high priorities of modifying parking standards. Objective #4, resilient housin g policies (no high priorities). Objective #5, Affirmatively Furthering Fair Housing (AFFH), noting the high priorities of fulfilling housing needs for special needs populations and workforce housing.

Ms. Bendix noted the Planning Commission feedback for Staff to evaluate the 75-foot building height limit in relation to its impact on the production of affordable housing in Campbell.

Mayor Resnikoff opened the floor for public comments.

Jim Sullivan, Campbell resident, spoke in support of establishing in-lieu fees, and for reducing government constraints, specifically reducing parking standards.

Gina Zari, Santa Clara County Association of Realtors Representative, spoke in support of “mom and pop” landl ords noting that tenant protection laws and government mandates hurt this group, which provide a significant amount of affordable housing.

Amy Cody, Moreland Neighborhood Association President, requested the City consider the impacts of larger City of S an Jose projects in the El Paseo area, such as the Costco project.

Anil Babbar, California Apartment Association Representative, noted the organizations efforts to keep people in their homes during the pandemic and requested Council and Staff keep in mind the affects of Assembly Bill (AB) 1482. 5 Packet Pg. 18
Minutes Acceptance: Minutes of Apr 20, 2022 6:00 PM (CONSENT CALENDAR)

Minutes of April 20, 2022 City Council Meeting Page 3

Councilmembers reviewed Objective #1, improving housing affordability in Campbell and had the following comments:

Councilmember Gibbons emphasized the need to distribute housing units according to RHNA allocation levels and noted the need to focus on low -low and low housing needs, supports establishing an affordable housing impact fee, concerned about AHOZ’s, and changing the 75 feet building height limit.

Councilmember Lopez noted his preference for focusing on the biggest bang for the buck and synergy wit h other resources/agencies, noting his priority for establishing a missing middle (SB10) ordinance, establishment of an ADU prechecked plan set, and for putting a priority on interfacing with the Legislature to support affordable housing, noting that advo cating for our needs and goals could be very impactful.

Councilwoman Landry noted her support for establishing in -lieu fees to support future affordable housing needs, support for ADU prechecked plan sets, noting her preference for the planning of parkin g needs now, with flexibility to convert it in the future if not used to capacity.

Vice Mayor Bybee noted her support for modifications to the inclusionary ordinance, support for AHOZ’s, and incentives for developers to develop low/moderate income housin g, noting a need for clarity of the low/very low income levels.

Mayor Resnikoff noted his concerns for the unintended consequences of regulating unit sizes, going beyond the 75 feet building height limit, and his concerns about impact fees and their impact to the business development in the City. Mayor Resnikoff expressed support for ADU prechecked plan sets.

Councilmembers reviewed Objective #2 & #3, preserving existing housing stock, and removing government constraints and had the following comments:

Councilwoman Landry noted her preference for making impact fees a higher priority.

Councilmember Lopez noted his pr eference for moving streamlining of the permitting process to a high priority as it creates a lot of synergy across the City.

Councilmember Gibbons noted her preference for development of a program which requires tenant protections on affordable housing projects, the need for an ordinance preserving mobile home parks, the need for an ordin ance relating to short term rental properties which could bring transient -occupancy tax (TOT) to the City’s housing programs and expressed support for streamlining permi tting processes.

5 Packet Pg. 19
Minutes Acceptance: Minutes of Apr 20, 2022 6:00 PM (CONSENT CALENDAR)

Minutes of April 20, 2022 City Council Meeting Page 4
Vice Mayor Bybee noted that she does not support rent control ordin ances and needs more information relating to short term rental options. She supports streamlining of the permitting process.

Mayor Resnikoff noted he is not supportive of rent control ordinances or short - term rental ordinances and noted the need to be co gnizant of the reality that not everything can be a high priority. Noting much of these areas will be improved with the passage of the objective standards.

Councilmembers reviewed Objectives #4 & #5, resilient housing and AFFH and had the following comments:

Councilmember Gibbons stated her desire for a Climate Action Plan to inform much of the resilient housing needs and education of utility management for affordable housing projects and expressed a concern for effective management of such programs with existing City resources.

Councilmember Lopez stressed the expectation of providing affordable housing information in multiple languages.

Councilwoman Landry noted her priority for resilient housing stating that some legislation will require such proc esses in utility codes, water efficiency, etc., and is supportive of providing affordable housing information in multiple languages.

Vice Mayor Bybee noted that much o f these areas will be addressed as part of the objective standards work and is support ive of providing affordable housing information in multiple languages.

Council emphasized that the 75 feet building height limit was voter approved and can only be formally adjusted by the voters or by State law.

Council took a recess at 8:30 p.m. and returned at 8:35 p.m. with all members present.

Councilmember Lopez recused himself, noting a 500 -foot conflict with the presented project location and his personal residence and left the meeting room.

Community Development Director Eastwood, introduced Brad Griggs with the Opportunity Housing Group and noted that an opportunity was presented to City Staff which could convert 252 market rate multi -family units at Parc at Pruneyard Apartments to low, middle, and moderate income housing. This opportunity relates to Objective #2, preserving existing housing stock and could move forward quickly on Council approval. This project proposes to use tax exempt bonds to make improvements to the property, which would then be tax exempt for future years. The City woul d need to join a State Joint Powers Authority and enter into a Public Benefi t Agreement. This opportunity window is closing quickly due to rising interest rates.

5 Packet Pg. 20
Minutes Acceptance: Minutes of Apr 20, 2022 6:00 PM (CONSENT CALENDAR)

Minutes of April 20, 2022 City Council Meeting Page 5
Councilmembers expressed concerns relating to this item being allowed to be heard on this a genda; and noted their need for more information on this project and how it fits into the priorities established by Staff.

Councilmember Lopez returned to the meeting room.

Community Development Director Eastwood noted that Staff will consider all Council feedback and will return in May 2022 for final Council approval on which policies and programs should be included in Campbell’s Plan for Housing.

ADJOURN

Mayor Resnikoff adjourned the meeting at 9:11 p.m.

APPROVED:

ATTEST:

Paul Resnikoff, Mayor

Dusty Christopherson, City Clerk

5 Packet Pg. 21
Minutes Acceptance: Minutes of Apr 20, 2022 6:00 PM (CONSENT CALENDAR)

CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California

STUDY SESSION MEETING OF THE CAMPBELL CITY COUNCIL
Monday, April 25, 2022 – 6:00 p.m.

City Hall Council Chamber – 70 N. First Street

This City Council Study Session meeting wa s duly noticed pursuant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).

No action may be taken on a matter under Study Session other than direction to staff to further review or prepare a r eport. Any proposed action regarding items on a Study Session must be agendized for a future Regular or Special City Council meeting.

CALL TO ORDER

The City Council of the City of Campbell convened this day in the regular meeting place, the City Hall Council Chamber, 70 N. First St., Campbell, California.

ROLL CALL

STAFF PRESENT

Brian Loventhal, City Manager; Angelique Gaeta, Assistant City Manager; Dusty Christopherson, City Clerk; Bill Seligmann, City Attorney; Rob Eastwood, Community Development Director; Will Fuentes, Finance Director; Gary Berg, Police Chief; Todd Capurso, Public Works Director; Natasha Bissell, Recreation and Community Services Director; Jenny Le -Christensen, Human Resources Manager; and Cecil Lawson, Information Technology Manager.

PUBLIC COMMENT

There was no public comment.

UNFINISHED BUSINESS
6 Packet Pg. 22
Minutes Acceptance: Minutes of Apr 25, 2022 6:00 PM (CONSENT CALENDAR)

Minutes of April 25, 2022 City Council Meeting Page 2

1. Fiscal Year 2022-23 Budget Study Session – Operating Budget and Capital Improvement Plan (CIP)
Recommended Action: That the City Council receive an update and provide feedback on preliminary proposed Fiscal Year (FY) 2022 -23 Operating Budget and 2022 - 2026 Five-Year Capital Improvement Plan (CIP).

City Manager Brian Loventhal introduced Staff Repo rt dated April 25, 2022 and described the budget development process up to this point noting that tonight’s proposals are in draft form, and some assumptions were made to begin the draft process. City Manager Loventhal noted that revenues have increased approximately 5% since last year but expenses have increased as well. Council elected to use some American Rescue Plan Act (ARPA) funds during the pandemic to cover budg et deficits, including a $1.3 million deficit in Fiscal Year 2021, and a $2.1 million def icit in Fiscal Year 2022. City Manager Loventhal noted that the draft budget for Fiscal Year 2023 is showing a deficit of approximately $1.3 million, but Staff is opt imistic for the future as revenues and the economic recovery indicates improvement throughout the upcoming year.

City Manager Loventhal reviewed the general fund, noting that labor is the City’s largest expense, Staff made some labor cost assumptions in t he draft budget presented, as labor negotiations are in the beginning phases for Fiscal Y ear 2023. City Manager Loventhal reviewed some of the largest departmental changes for Fiscal Year 2023, including increased Recreation & Community Services Department activities, additional software needs for the Finance Department, an increase in Santa C lara County Fire Services costs, and funding for the Public Works Department facility condition assessments, noting that some of these changes have associated revenue offsets, such as is the case with the Recreation & Community Services Department.

Finance Director Will Fuentes reviewed the long range forecast indicating a growth of income for the City over the next few years. Director Fuentes reviewed the general fun d reserve accounts noting they were drawn down due to COVID and are expected to be at pre -COVID levels by Fiscal Year 2027. ARPA funds are not allowed to be used to replenish reserve accounts.

City Manager Loventhal presented the prioritized draft person nel requests for Council consideration and feedback. In response to inquiries, City Manag er Loventhal noted that the requested Public Information Officer would supplement the current outreach resources which are housed in the Police Department. This position would create a communication vision and plan for the City improving the City’s website presence, social media activity, and participate in and advertise Community events.

Councilmember Gibbons requested a summary table of what drawdowns were made on the general fund reserve accounts versus what ARPA funds were used to cover, and what amounts of CARES Act funds were deposited into the general fund.
6 Packet Pg. 23
Minutes Acceptance: Minutes of Apr 25, 2022 6:00 PM (CONSENT CALENDAR)

Minutes of April 25, 2022 City Council Meeting Page 3
In response to an inquiry, Chief Berg explained that the Mental Health Coordinator personnel request is a request for a part -time position to take over the mental health/wellness programs for the Department and to serve as a confidential resource with the specialized trainings and certifications to assist personnel through difficult situations.

In response to inquiries, Director Fuentes noted that ARPA funds must be accounted for by September 202 6. The Association of Bay Area Governments Insurance Pool costs to the City are expected to increase by 15-18%.

In response to an inquiry, Director Fuentes noted that the projections for TOT are showing a 50% recovery rate by the end of June 2023, and th en continue to recover from there.

Councilmember Gibbons requested a table clarifying what budgetary increases are related to recovering from the pandemic, and what b udgetary increases are above and beyond that level of service, particularly relating to t he Recreation & Community Services Department.

Councilmembers requested clarification on the net costs for any personnel requests in addition to the justification for reclassifications.

Mayor Resnikoff opened the public hearing, there being no speakers, the public hearing was closed.

Finance Manager Norite Vong presented the Capital Improvement Plan (CIP) totaling $89,856,660 and highlighted draft plan changes.

In r esponse to inquiries, Public Works Director Todd Capurso clarified that the Hamilton Avenue/Hwy 17 Southbound Offramp project now totals approximately $3 million, largely with Measure B funds, but does require approximately a $600,000 City contribution. Di rector Capurso noted that the projects associated with Hwy 17 on/off ramps and the Camde n Avenue interchange will remain on the project list, until all necessary funding has been identified, in total these projects will require at least a $1.5 million cit y contribution before they can move forward. There may be grant opportunities in the futu re, but the City should be prepared to contribute approximately 20% to be the most competitive proposal during the grant review process.

In response to inquiries, Dir ector Capurso stated that the Ainsley House roof is being addressed in two stages, once f or a condition assessment, and once for a project to address the needs. The condition assessment will inform the funding needs for repairs.

Director Capurso noted the San Tomas Aquino Creek Trail, has been on the unfunded list for two years. Council confi rmed consensus for removing this project from the list, as it is largely on City of San Jose property and there has been little interest in moving it forward.
6 Packet Pg. 24
Minutes Acceptance: Minutes of Apr 25, 2022 6:00 PM (CONSENT CALENDAR)

Minutes of April 25, 2022 City Council Meeting Page 4
Director Capurso stressed the need for a dedicated funding source or a sinking fund to address t he outcome of the building condition/needs assessment and noted that once the Measure O buildings (Police building & Library building) are complete, the Civic Center building will really show its age.

Mayor Resnikoff reopened the public hearing to allow f or public comment related to the CIP, there being no speakers, the public hearing was closed.

Councilmember Lopez requested consideration of a self-funded grant coordinator position to support citywide grant efforts as well as tracking grant opportunities.

Councilmembers Gibbons and Lopez requested additional information on ways to pay down the California Public Employee’ Retirement System (PERS) obligation.

Councilmembers requested additional information relating to the staffing structures of each department/succession plan.

Following discussions, Council confirmed consensus for maintaining the Public Information Officer as part of the Assistant City Manager duties and modifying the scope of the Mental Health Coordinator position to be used citywide.

ADJOURN

Mayor Resnikoff adjourned the meeting at 8:52 p.m.

APPROVED:

ATTEST:

Paul Resnikoff, Mayor

Dusty Christopherson, City Clerk

6 Packet Pg. 25
Minutes Acceptance: Minutes of Apr 25, 2022 6:00 PM (CONSENT CALENDAR)

CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California

CITY COUNCIL EXECUTIVE SESSION
Tuesday, May 3, 2022 – 6:30 p.m.

Ralph Doetsch Conference Room
70 N. First Street, Campbell, California

This City Council meeting was conducted pursuant to provisions of the Brown Act.

CALL TO ORDER

The City Council of the City of Campbell convened on the special day of May 3, 2022.

ROLL CALL

PUBLIC COMMENT

There was no public comment.

MOVE INTO CLOSED EXECUTIVE SESSION

A. Personnel

B. Litigation

C. Real Property - Conference with Real Property Negotiators (Cal. Gov. Code 54956.8)
Campbell Community Center, 1 West Campbell Avenue, Campbell CA 95008 City Negotiator: City Manager Brian Loventhal
Negotiating Parties: Old Orchard School; Santa Clara County Office of Education; Casa di Mir; DaVinci Academy
Under Negotiation: Lease Renewals – price and terms of payment

D. Labor Negotiations

The City Council met in Executive Session to discuss Item C. City Manager Brian Loventhal, City Attorney Bill Seligmann, Recreation and Community Services Di rector Natasha Bissell were in attendance.

7 Packet Pg. 26
Minutes Acceptance: Minutes of May 3, 2022 6:30 PM (CONSENT CALENDAR)

Minutes of May 3, 2022 City Council Meeting Page 2
City Attorney Seligma nn stated that any reportable actions will be reported at the next regularly scheduled City Council Meeting.

ADJOURNMENT

Council adjourned at 7:07 p.m.

APPROVED:

ATTEST:

Paul Resnikoff, Mayor
Dusty Christopherson, City Clerk

7 Packet Pg. 27
Minutes Acceptance: Minutes of May 3, 2022 6:30 PM (CONSENT CALENDAR)

CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California

REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, May 3, 2022 – 7:30 p.m.

City Hall Council Chamber – 70 N. First Street

This City Council meeting was duly noticed pursuan t to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).

This meeting was recorded and can be viewed in its entirety at:
https://campbellca.gov/agendacenter and https://www.youtube.com/user/CityofCampbell.

CALL TO ORDER

The City Council of the City of Campbell convened this day in the regular meeting place, the City Hall Council Chamber, 70 N. First St., Campbell, California.

ROLL CALL

PLEDGE OF ALLEGIANCE
Andrea Sanders, Deputy City Clerk, and her son, Kyon Tarver led the Pledge of Allegiance.

SPECIAL PRESENTATIONS AND PROCLAMATIONS

1. Proclamation Declaring the week of May 1 -7, 2022, as Municipal Clerks Week
Recommended Action: Issue a proclamation declaring the week of May 1-7, 2022 as Municipal Clerks Week in the City of Campbell.

Mayor Resnikoff presented Deputy City Clerk Andrea Sanders, and City Clerk Dusty Christopherson a proclamation recognizing the 53rd Annual Municipal Clerks Week.

Councilmembers expressed appreciation to City Clerk’s Office staff for their hard work during the past couple of challenging years during open public meeting settings and for being a constant and confident presence for City of Campbell residents. 8 Packet Pg. 28
Minutes Acceptance: Minutes of May 3, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of May 3, 2022 City Council Meeting Page 2

Deputy City Clerk Sanders th anked the Council for the recognition and noted that she enjoys working in the Clerk’s profession and representing the City of Campbell.

COMMUNICATIONS AND PETITIONS
There were no communications and petitions.

ORAL REQUESTS

Manaal Shafi, Bloom Energy Rep resentative, spoke in support of the Bloom Energy Stars & Strides charitable run honoring frontline heroes.

COUNCIL ANNOUNCEMENTS
City Hall is open to the public for in -person services Monday - Friday, 8:00 a.m. to 5:00 p.m. For your convenience, online se rvices such as permits, business license applications and virtual appointments are available online. Visit the city’s website at www.campbellca.gov to view information for all city departments and services available.

On Monday, May 9, 2022 at 6:00 p.m., City Council will review the existing and proposed objectives, polices, and programs and provide direction on which should be reviewed or added as part of “Campbell’s Plan for Housing” and the City’s Envision Campbell General Plan Update.

The Campbell Youth Commission is now recruiting. Join the talented Youth Commission team. Teens gain leadership skills, and act in an advisory capacity to the City Council on matters relating to teens. For additional informatio n about this exciting opportunity, please visit www.campbellteens.com.

The Ainsley House Garden Concert Series is excited to host the Kristen Strom Jazz Quartet on Sunday, May 22, 2022. Saxophonist Kristen St rom has been a mainstay on the Bay Area Music scene for nearly two decades, acclaimed for beautifully rendered melodies, Strom has played alongside many well -known artists, including Gladys Knight, Natalie Cole, and Roberta Flack. Tickets are on sale now a t www.campbellmuseums.com.

Read Beyond the Beaten Path. Summer readin g at the Campbell Express Library begins Wednesday, June 1, 2022 and is free and open to all ages. You can register at the library or online at www.sccld.org.

CONSENT CALENDAR

Mayor Resnikoff asked if anyone wished to remove an item from the Consent Calendar.

The Consent Calendar was considered as follows:

2. Minutes of City Council Study Session Meeting of April 5, 2022 8 Packet Pg. 29
Minutes Acceptance: Minutes of May 3, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of May 3, 2022 City Council Meeting Page 3
Recommended Action: Approve the Study Session meeting minutes of April 5, 2022.

This action approves the City Council Study Session meeting minutes of April 5, 2022.

3. Minutes of City Council Executive Session Meeting of April 19, 2022 Recommended Action: Approve the Execu tive Session meeting minutes of April 19, 2022.

This action approves the Executive Session meeting minutes of April 19, 2022.

4. Minutes of City Council Regular Meeting of April 19, 2022 Recommended Action: Approve the Regular Meeting minutes of April 19, 2022.

This action approves the City Council Regular Meeting minutes of April 19, 2022.

5. Approving Bills and Claims
Recommended Action: That the City Council approve the bills and claims in the amount of $1,897,105.77.

This action approves the bills and claims in the amount of $1,897,105.77 as follows: payroll checks dated March 31, 2022, in the amount of $35,776.15; bills and claims checks dated April 4, 2022, in the amount of $1,431,071.93; bills and claims checks dated April 11, 2022, in the amount of $430,257.69.

6. Monthly Investment Transactions Report (March 2022)
Recommended Action: That the City Council review and accept the Monthly Investment Transactions Report for March 2022.

This action accepts the Monthly Investment Transactions Report for March 2022.

7. Investment Report - Quarter Ending March 2022
Recommended Action: That the City Council approve the Investment Report for the quarter ending March 2022 and the report be noted and filed.

This action a pproves the Investment Report for the quarter ending March 2022 and the report be noted and filed.

8. Approval of Tract Map No. 10557 Including Acceptance of Street Dedication and Public Service Easements Shown on Said Map – 1323 Elam Aven ue (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution approving the Tract Map for Tract No. 10557 and accept the street dedication and public service easements as shown on the map for the property located at 1323 Ela m Avenue.

8 Packet Pg. 30
Minutes Acceptance: Minutes of May 3, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of May 3, 2022 City Council Meeting Page 4
This action adopts Resolution No. 12824 approving the Tract Map for Tract No. 10557 and accepts the street dedication and public service easements as shown on the map for the property located at 1323 Elam Avenue.

9. Second Reading of Ordinance No. 2280 Adding Chapter 8.44 - AB 481 Military Equipment to the City of Campbell Municipal Code in Compliance with Assembly Bill 481 (Ordinance/Roll Call Vote)
Recommended Action: That the City Council approve second reading to adopt Ordinance No. 2280 adding Chapter 8.44 - AB 481 Military Equipment to the City of Campbell Municipal Code in compliance with Assembly Bill 481 approving a Military Equipment Policy as set forth in Campbell Police Department Policy 709.

This action adopts Ordinance No. 2280 adding Chapter 8.44 - AB 481 Military Equipment to the City of Campbell Municipal Code in compliance with Assembly Bill 481 approving a Military Equipment Policy as set forth in Campbell Police Department Policy 709.

10. Approve Enterprise Access Agreement with Environmental Systems Research Institute, Inc. (ESRI) for the Use of Geographic Information Systems (GIS) Technology (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution auth orizing the City Manager to execute an Enterprise Access Agreement with Environmental Systems Research Institute, Inc. (ESRI), for the licensing and use of ESRI’s Geographic Information Systems (GIS) products in an amount not to exceed $88,500; and, autho rize the City Manager to execute any f uture amendments to the contract and to dispense with bidding requirements as specified in Campbell Municipal Code Section 3.20.030(7).

This action adopts Resolution No. 12825 authorizing the City Manager to execute an Enterprise Access Agreement with Env ironmental Systems Research Institute, Inc. (ESRI), for the licensing and use of ESRI’s Geographic Information Systems (GIS) products in an amount not to exceed $88,500; and, authorize the City Manager to execute any f uture amendments to the contract and t o dispense with bidding requirements as specified in Campbell Municipal Code Section

3.20.030(7).

11. Extension of Public WiFi at Campbell Community Center (Resolution/Roll Call Vote)
Recommended Action: That the Cit y Council adopt a Resolution authorizi ng the City Manager to execute a contract with Dasher Technologies, in an amount not to exceed $80,729 to purchase and install the public Wifi technology at the Campbell Community Center; and, authorize the City Manager to execute any future amendments to the contract and dispense with the standard bidding requirements as specified in Campbell Municipal Code Section 3.20.030(6).

This action adopts Resolution No. 12826 authorizing the City Manager to execute a contract with Dasher Technologies, in an amount not to exceed $80,729 to purchase and install the public Wifi technology at the Campbell Community 8 Packet Pg. 31
Minutes Acceptance: Minutes of May 3, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of May 3, 2022 City Council Meeting Page 5
Center; and, authorize the City Manager to execute any future amendments to the contract and dispense with the standard bidding requirements as specified in Campbell Municipal Code Section 3.20.030(6).

M/S: Bybee/Landry – That the City Council approve the Consent Calendar.

The motion was adopted by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Bybee
SECONDER: Landry
AYES: Gibbons, Landry, Lopez, Bybee, Resnikoff

PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES
There were no public hearings and introduction of ordinances.

NEW BUSINESS
There was no new business.

UNFINISHED BUSINESS
There was no unfinished business.

COUNCIL COMMITTEE REPORTS

12. Council Committee Reports
Recommended Action: That the City Counc il report on activities from their committee assignments.

Councilwoman Landry attended the Campbell Union School District (CUSD) Centennial Celebration, the Economic Development Sub committee, the Arbor Day Celebration, and the Merrill Gardens Open House.

Councilmember Lopez attended the Bay Area Air Quality Management District meeting, the @The Kids Table event with Supervisor Ellenberg, the Hindu Swayamsevak Sangh the Community meet ing, the Arbor Day Celebration, the CUSD Centennial Celebration, the Cinco De Mayo Community event at the Pruneyard, and the Silicon Valley Clean Energy Authority (SVCEA) 5 -Year Anniversary.

Councilmember Gibbons attended the Association of Bay Area Gover nments meeting, an American Institute of Architecture (AIA) event on behal f of the SVCEA, the SCVEA 5-Year Anniversary, Legislative Subcommittee meeting, and the Museum Foundation meeting.

8 Packet Pg. 32
Minutes Acceptance: Minutes of May 3, 2022 7:30 PM (CONSENT CALENDAR)

Minutes of May 3, 2022 City Council Meeting Page 6
Vice Mayor Bybee attended the Campbell Chamber of Commerce Monthly Luncheon, the CUSD Centennial Celebration, the Arbor Day Celebration, and the SVCEA 5-Year Anniversary.

Mayor Resnikoff attended the Silicon Valley Animal Control Authority meeting, the West Valley Mayors & Managers meeting, the Chamber of Commerce Monthly Luncheon, the Hindu Cultural Event, the Arbor Day Celebration, and the CUSD Centennial Celebration.

ADJOURN
Mayor Resnikoff adjourned the meeting at 7:55 p.m.

APPROVED:

ATTEST:

Paul Resnikoff, Mayor

Dusty Christopherson, City Clerk

8 Packet Pg. 33
Minutes Acceptance: Minutes of May 3, 2022 7:30 PM (CONSENT CALENDAR)

City
Council
Report

TITLE: Approving Bills and Claims

RECOMMENDED ACTION

Approve the bills and claims in the amount of $1,104,564.91.

DISCUSSION

The bills and claims that have been au dited and approved by staff for payments made as noted below:

Type Check Date Amount
Payroll April 14, 2022 $64,812.45
Bills & Claims April 18, 2022 $686,604.46
Bills & Claims April 25, 2022 $353,148.00
Total $1,104,564.91

FISCAL IMPACT

Requested action does not require a budget adjustment. Adequate funding was available to cover all expenses as listed.

Prepared by:

Roberto Garcia-Acosta, Accounting Clerk
II

Reviewed by:

Norite Vong, Finance Manager
Item: 9
Category: CONSENT CALENDAR
Meeting Date: May 17, 2022
9 Packet Pg. 34
Approving Bills and Claims Page 2 of 2

Approved by:

Angelique Gaeta, Assistant City
Manager

9 Packet Pg. 35

City
Council
Report

TITLE: Extension of Declaration of Local Emergency (Resolution/Roll Call Vote)

RECOMMENDED ACTION

That the City Council adopt a resolution extending the March 15, 2 022 City Council proclamation declaring the existence of a local emergency resulting from community spread of COVID-19 another sixty (60) days until July 29, 2022.

BACKGROUND

On March 17, 2020, the City Council adopted a resolution ratifying the Director of Emergency Services’ proclamation dated March 12, 2020 , declaring the existence of a local emergency resulting from the community spread of COVID -19 in the City of Campbell (City). This declaration of a local emergency provided the City the authority to provide and request mutual aid from state and other governmental agencies, consistent with the provisions of local ordinances, resolutions, emergency plans, and agreements; as well as promulgate orders and regulations, and exercise emergency police powers necessary to provide for the protection of life and property.

During the COVID -19 public health crisis, the City Council passed several resolutions that are effective for the duration of the local emergency and listed below. No additional actions by the City Council are necessary as the actions authorized by these resolutions will terminate when the declaration of local emergency ends.

• Resolution 12580 - Setting forth code enforcement priorities during the COVID-19 emergency;
• Resolution 12594 - Setting forth enforcement priorities affecting retail and restaurant businesses outside of the downtown area during the COVD-19 emergency;
• Resolution 12595 – Setting forth enforcement priorities affecting downtown retail and restaurant businesses during the COVID-19 emergency; • Resolution 12620 - Temporarily suspending and designating parking restrictions and prohibitions pursuant to Campbell municipal code chapter

10.24 and authorizing the temporary closure of the 100, 200, 300, and 400 blocks of East Campbell Avenue to motor vehicle traffic pursuant to California Vehicle Code section 21101 to facilitate outdoor business and setting forth Item: 10
Category: CONSENT CALENDAR
Meeting Date: May 17, 2022
10 Packet Pg. 36
Extension of Declaration of Local Emergency Page 2 of 3 enforcement priorities affecting downtown businesses during the COVID -19 emergency;
• Resolution 12623 - Setting forth enforceme nt priorities affecting all business outside of the downtown area during the COVD-19 emergency.

Pursuant to Campbell Municipal Code 2.28.060 (a)(1) and California Government Code Section 8630 (b), the local emergency declaration was ratified by the City C ouncil, as required by law , in order to allow the City the ability to exercise emergency police powers such as: evacuation; immunity for emergency actions; authorization of issuance of orders and regulations; activation of pre -established emergency provisions; and, is a prerequisite for requesting state or federal assistance.

The City Council has reviewed the local emergency declaration every sixty ( 60) days and has adopted resolutions to extend the declaration of a local emergency on May 5, July 24, September 15, November 2, and December 15 of 2020; on February 2, April 6, June 1, August 3, September 21 , October 19 , and November 16 of 2021; and on January 18 and March 15 of 2022.

On September 16, 2021, Governor Gavin Newsom signed into law Assembly Bill (AB) 361 enabling local public agencies to continue to use teleconferencing without complying with certain Brown Act provisions.

At their meeting on October 19, 2021, the City Council adopted a resolution that incorporated the necessary findings required by AB 361 to allow the City to continue to conduct remote meetings. Although the City Council expressed its desire to resume Council meetings in -person, they questioned the ability of the City’s commissioners to meet in-person. The City Council requeste d staff provide additional information as to whether the City’s commissioners were willing and able to resume in -person meetings.

Staff later reported to the City Council that the majority of commissioners were willing to return to in-person meetings.

At their meeting on November 16, 2021, the City Council adopted a resolution extending the declaration of emergency to January 29, 2022. That resolution did not contain the findings required by AB 361 to allow for remote meetings. Since that time all City Council and Board and Commission meetings have been conducted in -person and in conformance with all requirements of the Brown Act. At their meeting on March 15, 2022, the City Council adopted a resolution further extending the declaration of emergency to May 29, 2022.

DISCUSSION

Pursuant to the Government Code the City must review the declaration of emergency every 60 days. Due to the ongoing presence of the COVID-19 virus, staff recommends the City Council further extend the declaration of emergency for another 60 days (until July 29, 2022).

10 Packet Pg. 37
Extension of Declaration of Local Emergency Page 3 of 3 If the City Council extends the declaration of emergency, the business assistance resolutions that are tied to the declaration of emergency will likewise be extended for the same duration.

FISCAL IMPACT

The proclamation of a local emergency is a prerequisite for requesting state or federal assistance and/or reimbursement for expenses incurred in response to the emergency.

There is no fiscal impact associated with the extension of the local emergency.

ALTERNATIVES
If the City Council desires to permit remote meetings of its legislative bodies, the Council can adopt the proposed resolution with one of the following findings added to the resolution.

1. The state of emergency continues to directly impact the ability of the members to meet safely in person; or

2. State or local officials continue to impose or recommend measures to promote social distancing.

Prepared by:

Angelique Gaeta, Assistant City Manager

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Reso_Extension of Local Emergency
10 Packet Pg. 38
RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL CONTINUING

THE PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY DUE TO COVID-19
WHEREAS, Campbell Municipal Code Section 2.28.060 empowers the City Manager or designee, as the Director of Emergency Services to issue a proclamation to proclaim the existence or threatened existence of a local emergency if the City Council is not in session, and requires that the City Council shall take action to ratify the proclamation within seven (7) days thereafter, or the proclamation shall have no further force or effect; and WHEREAS, pursuant to California Government Code Section 8680.9, a local emergency is a condition of extreme peril to persons or property proclaimed as such by the governing body of the local agency affected by a natural or manmade disaster; and WHEREAS, the purpose of a local emergency proclamation is to provide extraordinary police pow ers, immunity for emergency actions, authorize issuance of orders and regulations, and activate pre-established emergency provisions; and WHEREAS, a local emergency proclamation is a prerequisite for requesting state or federal assistance; and
WHEREAS, conditions of extreme peril to the safety of persons and property have arisen within the City, based on documented conditions stated in prior resolutions including but not limited to the following:

1. On March 11, 2020, the World Health Organization characteriz ed the COVID -19 outbreak as a pandemic.

2. COVID-19 has spread globally and per World Health Organization (WHO) data, as of October 11, 2021, over 237 million people have contracted the virus worldwide, resulting in more than 4.8 million deaths. In the United States, over 43.5 million cases have been confirmed, leading to 703,599 deaths.

WHEREAS, the City Council does hereby find that the above described conditions of extreme peril did warrant and necessitate the proclamation of the existence of a local emergency in the City; and
WHEREAS, California Government Code, Title 2, Division 1, Chapter 7.5 - California Disaster Assistance Act (CDAA) allows that with the Proclamation of a Local Emergency the City may seek financial assistance and may request reimbursement of the significant expenses incurred during response, if approved by the Director of the California Office of Emergency Services or Concurrence or Governor’s Proclamation; and WHEREAS, on March 12, 2020, the Director of Emergency Services issued a proclamation declaring the existence of a local emergency within the City, at which time the City Council was not in session but was ratified and confirm ed by the City Council on March 17, 2020 ; and

10.a
Packet Pg. 39
Attachment: Reso_Extension of Local Emergency [Revision 1] (Extension of Declaration of Local Emergency) WHEREAS, on March 17, 2020 the first public health order issued by the Santa Clara County Public Health Officer went into effect, requiring the sheltering in place of all residents in the County, and only allowing a defined set of essential activities and businesses . Since that date sixteen additional public health orders have been issued, each updating the type of allowable activities and risk reduction measures, most recently on August 2, 2021; and WHEREAS, as required by Government Code 8630(c) the City Council reviewed the need to continue the local emergency declaration every 60 days until conditions warrant termination. The local emergency declaration has been extended in calendar year 2020, on May 5, July 24, September 15, November 2, and December 15 ; in calendar year 2021, on February 2, April 6, June 1, August 3, September 21, October 19 and November 16; and in calendar year 2022, on January 18 and March 29.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Campbell that:

1. The City Council has reviewed the need for continuing the declaration of local emergency ratified and confirmed on March 29 , 2022, and finds based on substantial evidence that the public interest and necessit y require the reinstatement and continuance of the proclamation of local emergency related to COVID-19.

2. Said local emergency shall be deemed to continue to exist until terminated by the City Council of the City of Campbell.

3. The Director of the Office of Emergency Services is hereby directed to report to the City Council within sixty (60) days on the need for further continuing the local emergency.

PASSED AND ADOPTED this ______ day of ____________ 2022, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

________________________
Paul Resnikoff, Mayor

ATTEST:

_______________________________
Dusty Christopherson, City Clerk

10.a
Packet Pg. 40
Attachment: Reso_Extension of Local Emergency [Revision 1] (Extension of Declaration of Local Emergency)

City
Council
Report

TITLE: Accept Donation from Joan Evans Bohnett Living Trust (Resolution/Roll Call Vote)

RECOMMENDED ACTION

That the City Council adopt a Resolution accepting the do nation of $135,736.66 from the Joan Evans Bohnett Living Trust and approve a budget adjustment to recognize the donation in Fiscal Year 2022.

BACKGROUND

The Campbell Historical Museum is a beneficiary of the Joan Evans Bohnett Living Trust established for Joan Evans Bohnett. Ms. Bohnett died on February 21, 2020. The Trust Agreement provides that upon the death of Ms. Bohnett, the Campbell Historical Museum is a named beneficiary of the Trust and is entitled to 10% interest in the residue of the Trust.

DISCUSSION

The Campbell Historical Museum & Ainsley House is appreciative of the donation which will be used to support upcoming operational needs at both Museum sites.

FISCAL IMPACT

If approved, donations will support the Campbell Museum programs. Staff expects $135,736.66 in donations and recommends that these donations be deposited into the General Fund Historical Museum Donations revenue account (101.528.4812) in Fiscal Year 2022. This is reflected in the attached budget adjustment form. However, any requests to spend and appropriate the funds will be made in future fiscal years; either at mid-year or during the annual budget preparation process.

Prepared by:

Kerry Perkins, Museum Supervisor
Item: 11
Category: CONSENT CALENDAR
Meeting Date: May 17, 2022
11 Packet Pg. 41
Accept Donation from Joan Evans Bohnett Living Trust Page 2 of 2

Reviewed by:

Natasha Bissell, Recreation Services
Manager

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Resolution Trust Acceptance
b. Budget Adjustment Form
c. Joan Evanss Bohnett Trust - Signed
11 Packet Pg. 42

RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AUTHORIZING THE ACCEPTANCE OF $135,736.66 FROM THE JOAN EVANS

BOHNETT LIVING TRUST FOR THE CAMPBELL HISTORICAL MUSEUM AND

APPROVING A BUDGET ADJUSTMENT TO RECOGNIZE THE DONATION IN FISCAL YEAR 2022

WHEREAS, the Campbell Historical Museum was named as a beneficiary of the Joan Evans Bohnett Living Trust; and

WHEREAS, Joan Evans Bohnett passed away on February 21, 2020; and

WHEREAS, the Campbell Historical Museum as a named beneficiary of the Trust is entitled to 10% interest in the residue of the Trust;

WHEREAS, the donation will be used to support operational need s at both Museum sites.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby accepts the donation of $135,736.66 for the operational needs of the Campbell Historical Museum and the Ainsley House and approves a budget adjust ment to recognize the donation in Fiscal Year 2022.

PASSED AND ADOPTED this _____ day of _________, 2022 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

__________________________
Paul Resnikoff, Mayor

ATTEST:

_______________________
Dusty Christopherson, City Clerk

11.a
Packet Pg. 43
Attachment: Resolution Trust Acceptance (Accept Donation from Joan Evans Bohnett Living Trust) City of Campbell
Request for Budget Adjustments
Department/Program Division Date Request No.

May 17, 2022 BA-14
Budget to be Reduced
Fund/Program Account Number Description Amount
Budget to be Increased
Fund/Program Account Number Description Amount
101.528 4812 135,736.66
REASON FOR REQUEST - BE SPECIFIC:

Finance Director RCS Director City Manager
Recreation & Comm Services
Will Fuentes Natasha Bissell Brian Loventhal
The purpose of this request is to recognize the $135,736.66 in donations received by the Campbell Historical Museum as a beneficiary of the Joan Evans Bohnett Living Trust. The Historical Museum is named beneficiary of the Trust and is entitled to 10% interest.
528 - Historical Museum
Donations - Historical Museum

11.b
Packet Pg. 44
Attachment: Budget Adjustment Form (Accept Donation from Joan Evans Bohnett Living Trust)

11.c
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Attachment: Joan Evanss Bohnett Trust - Signed (Accept Donation from Joan Evans Bohnett Living Trust)

11.c
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Attachment: Joan Evanss Bohnett Trust - Signed (Accept Donation from Joan Evans Bohnett Living Trust)

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Attachment: Joan Evanss Bohnett Trust - Signed (Accept Donation from Joan Evans Bohnett Living Trust)

11.c
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Attachment: Joan Evanss Bohnett Trust - Signed (Accept Donation from Joan Evans Bohnett Living Trust)

11.c
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Attachment: Joan Evanss Bohnett Trust - Signed (Accept Donation from Joan Evans Bohnett Living Trust)

11.c
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Attachment: Joan Evanss Bohnett Trust - Signed (Accept Donation from Joan Evans Bohnett Living Trust)

11.c
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Attachment: Joan Evanss Bohnett Trust - Signed (Accept Donation from Joan Evans Bohnett Living Trust)

11.c
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Attachment: Joan Evanss Bohnett Trust - Signed (Accept Donation from Joan Evans Bohnett Living Trust)

City
Council
Report

TITLE: Approval of Appointment to the Bicycle and Pedestrian Advisory Committee (Resolution/Roll Call Vote)

RECOMMENDED ACTION

That the City Council adopt a Resolut ion appointing Renee Small to the Bicycle and Pedestrian Advisory Committee (BPAC) for a term expiring August 2024.

BACKGROUND

In 1994, the City of Campbell (City) established a 5 -member Bicycle Advisory Committee (BAC) in response to a Metropolitan Tran sportation Commission (MTC) requirement that cities establish Bicycle Advisory Committees in order to remain eligible to receive Transportation Development Act (TDA) funds. Since its establishment, the City’s BAC has provided guidance to City staff and the City Council in the development of bicycle policies and programs, including review and approval of all applications for TDA funds administered by the Santa Clara Valley Transportation Authority (VTA).

On September 4, 2007, the City Council adopted Resolu tion No. 10809 approving four- year term lengths and appointment process es for BAC members. Th is new process brought the BAC in line with other City boards and commissions , helps BAC members know when they have fulfilled their term of service, and provides BAC members with the processes and opportunity for reapplying for another term or resigning as a member.

On November 1, 2010, the City Council adopted Resolution No. 11229 renaming the City’s Bicycle Advisory Committee (BAC) the Campbell Bicycle and Pedestrian Advisory Committee (BPAC). The name change expanded the committee’s responsibilities while keeping the same number of committee members and maintaining the committee’s focus on bicycle concerns.

DISCUSSION

On January 18, 2022, the City Council ac cepted the resignation of Carmen Lynaugh from the BPAC and directed the City Clerk to prepare a Notice of Unscheduled Vacancy with a term expiration of August 2024.

Between February and early April of 2022, a recruitment notice for one vacant BPAC position was posted on the City’s website and on social media. Four applications were Item: 12
Category: CONSENT CALENDAR
Meeting Date: May 17, 2022
12 Packet Pg. 53
Appointment to the Bicycle and Pedestrian Advisory Committee Page 2 of 3 received for the one vacancy. Candidate i nterviews were conducted by the Public Works Director and Traffic Engineer on May 2 , 2022 . All four candidates were interviewed.

Staff recommends that the City Council appoint Renee Small to the BPAC for a term expiring in August 2024. Renee is a longtime resident of Campbell, is interested in educating the public about traffic safety, and would like to improve the quality of life for Campbell residents. She also expressed interest in improving bicycle safety, school bike routes, and raising public awareness about traffic safety. She also brings to the BPAC her experience as a pedestrian, motorist, and school parent. She previously served on the City’s Parks and Recreation Commission.

FISCAL IMPACT
There is no fiscal impact associated with the appointment of BPAC members.

ALTERNATIVES
Do not accept the recommendation to fill the current vacancy. This alternative is not recommended as having five BPAC members broadens the perspectives and feedback from the committee, helps to determine consensus on discussion topics, and increases the number of BPAC members available to serve on the VTA’s BPAC.

Prepared by:

Matthew Jue, Traffic Engineer
Reviewed by:

Todd Capurso, Director of Public Works
Approved by:

Angelique Gaeta, Assistant City
Manager
12 Packet Pg. 54

Appointment to the Bicycle and Pedestrian Advisory Committee Page 3 of 3

Attachment:
a. Resolution
b. Renee Small Application
12 Packet Pg. 55
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

APPOINTING RENEE SMALL TO THE BICYCLE AND PEDESTRIAN ADVISORY

COMMITTEE
WHEREAS, in 1994, the City of Campbell established a Bicycle Advisory Committee (BAC) with five members appointed by the City Council to provide valuable guidance to the City regarding bicycle policies and programs; and WHEREAS, in 2007, the City Council adopted Resolution No. 10809 establishing four-year terms for BPAC members with up to three members whose four- year terms end on even-numbered years; and
WHEREAS, in 2010, the City Council adopted Resolution No. 11229 renaming the Campbell Bicycle Advisory Committee (BAC) the Campbell Bicycle and Pedestrian Advisory Committee (BPAC); and
WHEREAS, on January 18, 2022, the City Council accepted the resignation of Carmen Lynaugh from the BPAC and directed the City Clerk to prepare a Notice of Unscheduled Vacancy with a term expiration of August 2024; and WHEREAS, the City solicited applications for serving on the BPAC; and WHEREAS, four people submitted applications and were interviewed by staff; and
WHEREAS, staff recommends appointing Renee Small to fill the vacancy on the BPAC.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell approves the appointment of Renee Small to serve on the BPAC for a term expiring in August 2024.

PASSED AND ADOPTED this 17th day of May, 2022, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS:

APPROVED:

Attest:
_____________________________
Paul Resnikoff, Mayor
___________________________
Dusty Christopherson, City Clerk

12.a
Packet Pg. 56
Attachment: Resolution (Appointment to the Bicycle and Pedestrian Advisory Committee)

12.b
Packet Pg. 57
Attachment: Renee Small Application (Appointment to the Bicycle and Pedestrian Advisory Committee)

City
Council
Report

TITLE: Approval of Transportation Development Act (TDA) Article 3 Grant Application for Fiscal Year 2022/23 (Resolution/Roll Call Vote)

RECOMMENDED ACTION

That the City Council adopt a Resolution authorizing the Public Works Director to submit a Grant Application to the Santa Clara Valley Transportation Authority (VTA) for $56,869 in Transportation Development Act (TDA) Article 3 Guarantee Funds for the Campbell Bicycle and Pedestrian Project Fiscal Year 2022/23.

BACKGROUND

On an annual basis, the Metropolitan Transportation Commission (MTC) allocates Transportation Development Act (TDA) Article 3 funds to San Francisco Bay Area cities and counties for the purpose o f funding pedestrian and bicycle facility projects. TDA funds are acquired from statewide retail and gasoline/diesel fuel sales taxes. “Article 3” refers to the portion of the Act involving pedestrian and bicycle projects. TDA “guarantee” funds are apportioned to each city or county based on population. The TDA Article 3 funds are guaranteed in that the grant process is noncompetitive. Past TDA - funded projects include the recent Campbell Avenue/Railway Avenue Bike Box Project.

On May 18, 2021, the City Council adopted Resolution No. 12710 authorizing the Public Works Director to submit a TDA Article 3 grant application to the Santa Clara Valley Transportation Authority (VTA) for designing and constructing the Campbell Bicycle and Pedestrian Project Fiscal Year (FY) 2021/22.

DISCUSSION

Application for TDA Article 3 Guaranteed Funds for FY 2022/23 On March 17, 2022, the Campbell Bicycle and Pedestrian Advisory Committee (BPAC) approved nomination of the Campbell Bicycle and Pedestrian Project FY 2022/23 to receive $56,869 in guaranteed FY 2022/23 TDA funds. This project is almost identical to the Campbell Bicycle and Pedestrian Project FY 2021/22 with the exception of deleting the completed Winchester Boulevard Overlay Project and adding the following new concepts: 1) Annual Street Maintenance Project 22 -BB; 2) Hamilton Avenue Bike Lanes/Markings and Curb Ramps; and, 3) Campbell Priority Development Area (PDA) Enhancements. The FY 2022/23 project would therefore include any of the following project concepts:

Item: 13
Category: CONSENT CALENDAR
Meeting Date: May 17, 2022
13 Packet Pg. 58
Approval of Transportation Development Act (TDA) Article 3 Grant Application for Fiscal Year 2022/23

Page 2 of 4 ends

1. Shared Lane Markings. Shared pavement markings or arrows (also called "sharrows") are used to assist bicyclists with lateral positioning in a shared lane with on-street parallel parking in order to reduce the chance of a bicyclist impacting the open door of a parked vehicle. This concept would address gaps in bike lanes on arterials and streets that carry school bicycle traffic and would continue the work performed in previous fiscal years.

2. Americans with Disabilities (ADA) Traffic Signal Improvements. Thi s concept would retrofit existing traffic signals to lower pedestrian pushbuttons (PPB) that are mounted too high, replace PPBs that are non-ADA-compliant, replace PPB signs that do not have the ADA symbol of a walking man, and install audible pedestrian signals where none currently exist but are requested.

3. Bike Lanes, Green Bike Lanes, and Bike Boxes. Bike lanes would be installed consistent with the City’s General Plan and/or the VTA’s Countywide Bicycle Plan.

Green bike lanes provide high visibility p avement markings at locations of high vehicular-bicycle conflicts. The City has green bike lanes on portions of Winchester Boulevard. Potential future sites such as portions of Hamilton Avenue are being considered.

Bike boxes are high-visibility green pavement markings that delineate a space on an intersection approach between the limit line for vehicles and the upstream crosswalk line. This green bike box space allows bicyclists to bypass a standing vehicular queue and position themselves safely ahead of any potential conflicts from right -turn traffic. Potential bike box locations include eastbound Hacienda Avenue at Winchester Boulevard and eastbound Campbell Avenue at Third Street. This concept would install green bike lanes and bike boxes at appropriate locations.

4. San Tomas Aquino Road Bike Lanes. This concept would install bike lanes between Latimer Avenue and Bucknall Road in conjunction with planned bike lanes in San Jose north of Latimer Avenue and south of Bucknall Road, respectively.

5. Bascom Ave nue and Campbell Avenue Bike Lanes. This concept would convert the shoulders of Bascom Avenue between Hamilton Avenue and the south city limits near Apricot Avenue to bike lanes. Driveways on Bascom Avenue and Campbell Avenue adjacent to the Pruneyard Shop ping Center would be candidate locations for green bike lane pavement markings. The TDA funds would supplement the $50,000 collected from the Pruneyard Shopping Center and Offices Expansion Project for the installation of green bike lanes and the conversio n of bike route shoulders to bike lanes along the Pruneyard frontage along Bascom Avenue and Campbell Avenue.

13 Packet Pg. 59
Approval of Transportation Development Act (TDA) Article 3 Grant Application for Fiscal Year 2022/23

Page 3 of 4 ends

6. Harriet Avenue Sidewalk Project. This concept would install sidewalk in pockets (gaps) that are missing sidewalk on the west side of Harriet Ave nue between Westmont Avenue and Van Dusen Lane. The concept would also install ADA -compliant curb ramps along Harriet Avenue and bicycle shared lane markings (“sharrows”) between Westmont Avenue and Hacienda Avenue. This project will be under construction this year.

7. Winchester/Camden Pedestrian Improvements. This concept would construct pedestrian improvements such as ADA curb ramps and sidewalk on the east leg of Camden Avenue. Currently, the crosswalk crossing the northbound right-turn lane guides pedestrians to the railroad tracks.

8. Annual Street Maintenance Project 22 -BB. This concept would install sharrows and curb ramps at locations such as West Parr Avenue.

9. Hamilton Avenue Bike Lanes/Markings and Curb Ramps. This concept would install bike lanes or sharrows, and curb ramps along Hamilton Avenue.

10. Campbell PDA Enhancements. This concept would install bike and pedestrian improvements along Civic Center Drive, Orchard City Drive, and Campbell Avenue in the Historic Downtown.

Staff would submit thes e project concepts as one project called the “Campbell Bicycle and Pedestrian Project FY 2022/23” to simplify bookkeeping of TDA funds and allow the City the flexibility to use the TDA funds for whichever project concept has the most pressing need for funding.

FISCAL IMPACT

Approval of the submittal of a grant application for $56,869 in TDA Article 3 funds would allow the City to receive a total of $56,869 in guaranteed TDA funds. No local match is required. If the City’s grant application is approved, s taff will return with a budget adjustment to receive the grant funds and appropriate them for use in FY 2022/23.

ALTERNATIVES

Do not authorize the submittal of a TDA grant application for $56,869 for FY 2022/23 TDA Article 3 guaranteed funds for the Camp bell Bicycle and Pedestrian Project FY22/23.

Prepared by:

Matthew Jue, Traffic Engineer
13 Packet Pg. 60
Approval of Transportation Development Act (TDA) Article 3 Grant Application for Fiscal Year 2022/23

Page 4 of 4 ends

Reviewed by:

Todd Capurso, Director of Public Works
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Campbell Bicycle and Pedestrian Project FY22/23 Map
b. Resolution
c. Resolution Attachment A
d. Resolution Attachment B
13 Packet Pg. 61

13.a
Packet Pg. 62
Attachment: Campbell Bicycle and Pedestrian Project FY22/23 Map (Approval of Transportation Development Act (TDA) Article 3 Grant RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

AUTHORIZING THE PUBLIC WORKS DIRECTOR TO SUBMIT APPLICATIONS FOR FISCAL YEAR 2022/23 TRANSPORTATION DEVELOPMENT ACT (TDA) FUNDS

FOR THE CAMPBELL BICYCLE AND PEDESTRIAN PROJECT FISCAL YEAR (FY) 2022/23

WHEREAS, the City of Campbell was awarded $56,869 in TDA Article 3 guaranteed funds for Fiscal Year (FY) 2022/23; and

WHEREAS, staff recommends submitting a TDA Article 3 grant application for $56,869 for FY 2022/23 TDA Article 3 guaranteed funds for the Campbell Bicycle and Pedestrian Project FY 2022/23; and

WHEREAS, members of the Campbell Bicycle and Pedestrian Advisory Committee endorse the Campbell Bicycle and Pedestrian Project FY 2022/23; and

WHEREAS, the ability to obtain funding approval requires City Council endorsement of the project; and

WHEREAS, the Metropolitan Transportation Commission (MTC) requires the City of Campbell to use language from MTC’s Model Governing Body Resolution in this resolution to obtain MTC’s funding approval; and

WHEREAS, MTC requires an Attachment A, “Findings ,” and an Attachment B, “Project Application;” and

WHEREAS, Article 3 of the Transportation Development Act (TDA), Public Utilities Code (PUC) Section 99200 et seq., authorizes the submission of claims to a regional transportation planning agency for the funding of projects exclusively for the benefit and/or use of pedestrians and bicyclists; and

WHEREAS, the Metropolitan Transportation Commission (MTC), as the regional transportation planning agency for the San Francisco Bay region, has adopted MTC Resolution No. 4108, Rev ised, entitled “Transportation Development Act, Article 3, Pedestrian/Bicycle Projects,” which delineates procedures and criteria for submission of requests for the allocation of “TDA Article 3” funding; and

WHEREAS, MTC Resolution No. 4108, Revised requ ires that requests for the allocation of TDA Article 3 funding be submitted as part of a single, countywide coordinated claim from each county in the San Francisco Bay region; and

WHEREAS, the City of Campbell desires to submit a request to MTC for the allocation of TDA Article 3 funds to support the projects described in Attachment B to

13.b
Packet Pg. 63
Attachment: Resolution (Approval of Transportation Development Act (TDA) Article 3 Grant Application for Fiscal Year 2022/23) this resolution, which are for the exclusive benefit and/or use of pedestrians and/or bicyclists.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Camp bell that the Public Works Director is hereby authorized to submit a TDA grant application for Fiscal Year 2022/23 to the Valley Transportation Authority to obtain $56,869 in TDA guaranteed funds for the Campbell Bicycle and Pedestrian Project FY 2022/23; and

BE IT FURTHER RESOLVED that the City of Campbell declares it is eligible to request an allocation of TDA Article 3 funds pursuant to Section 99234 of the Public Utilities Code; and

BE IT FURTHER RESOLVED that there is no pending or threatened litigation that might adversely affect the project or projects described in Attachment B to this resolution, or that might impair the ability of the City of Campbell to carry out the project; and

BE IT FURTHER RESOLVED that the project has been reviewed by the Bicycle and Pedestrian Advisory Committee (BPAC) of the City of Campbell; and

BE IT FURTHER RESOLVED that the City of Campbell attests to the accuracy of and approves the statements in Attachment A to this resolution; and

BE IT FURTHER RESOLVED that a certified copy of this resolution and its attachments, and any accompanying supporting materials shall be forwarded to the Santa Clara County Congestion Management Agency for submission to MTC as par t of the countywide coordinated TDA Article 3 claim.

PASSED AND ADOPTED this _____ day of _________, 2022, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS:

APPROVED:

Attest: _____________________________
Paul Resnikoff, Mayor
__________________________
Dusty Christopherson, City Clerk

13.b
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Attachment: Resolution (Approval of Transportation Development Act (TDA) Article 3 Grant Application for Fiscal Year 2022/23) April 2021 TDA Article 3 Model Resolution Page 4
Resolution No. _____________
Attachment A
Re: Request to the Metropolitan Transportation Comm ission for the Allocation of Fiscal Year 2022/23 Transportation Development Act Article 3 Pedestrian/Bicycle Project Funding Findings

Page 1 of 1 ends

1. That the City of Campbell is not legally impeded from submitting a request to the Metropolitan Transportation Commission for the allocation of Transportation Development Act (TDA) Article 3 funds, nor is the City of Campbell legally impeded from undertaking the project(s) described in “Attachment B” of this resolutio n.

2. That the City of Campbell has committed adequate staffing resources to complete the project(s) described in Attachment B.

3. A review of the project(s) described in Attachme nt B has resulted in the consideration of all pertinent matters, including those related to environmental and right-of-way permits and clearances, attendant to the successful completion of the project(s).

4. Issues attendant to securing environmental and r ight-of-way permits and clearances for the projects described in Attachment B have been reviewed and will be concluded in a manner and on a schedule that will not jeopardize the deadline for the use of the TDA funds being requested.

5. That the project(s) described in Attachment B co mply with the requirements of the California Environmental Quality Act (CEQA, Public Resources Code Sections 21000 et seq.).

6. That as portrayed in the budgetary description(s ) of the project(s) in Attachment B, the sources of funding other than TDA are assured and adequate for completion of the project(s).

7. That the project(s) described in Attachment B ar e for capital construction and/or final design and engineering or quick build project; and/or for the maintenance of a Class I bikeway which is closed to motorized traffic and/or Class IV separated bikeway; and/or for the purposes of restriping Class II bicycle lanes; and/or for the development or support of a bicycle safety education program; and/or for the development of a comprehensive bicycle and/or pedestrian facilities plan, and an allocation of TDA Article 3 funding for such a plan has not been received by the City of Campbell within the prior five fiscal years.

8. That the project(s) described in Attachment B wh ich are bicycle projects have been included in a detailed bicycle circulation element included in an adopted general plan, or included in an adopted comprehensive bikeway plan (such as outlined in Section 2377 of the California Bikeways Act, Streets and Highways Code section 2370 et seq.) or responds to an immediate community need, such as a quick-build project.

9. That any project described in Attachment B bicyc le project meets the mandatory minimum safety design criteria published in the California Highway Design Manual or is in a National Association of City and Transportation Officials (NACTO) guidance or similar best practices document.

10. That the project(s) described in Attachment B w ill be completed in the allocated time (fiscal year of allocation plus two additional fiscal years).

11. That the City of Campbell agrees to maintain, o r provide for the maintenance of, the project(s) and facilities described in Attachment B, for the benefit of and use by the public.

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Attachment: Resolution Attachment A (Approval of Transportation Development Act (TDA) Article 3 Grant Application for Fiscal Year 2022/23) April 2021 TDA Article 3 Model Resolution Page 5
Resolution No. ______________
Attachment B

Page 1 of 1 ends

TDA Article 3 Project Application Form
Fiscal Year of this Claim: 2022/23 Applicant: City of Campbell Contact person: Matthew Jue
Mailing Address: 70 North First Street, Campbell, CA 95008 E-Mail Address: [email protected] Telephone: 408-866-2154 Secondary Contact (in event primary not available)
E-Mail Address: [email protected] Telephone: 408-866-2150 Project Title (Short Description) : Campbell Bicycle and Pedestrian Project FY 22/23 Amount of claim: $ 56,869
Description of Overall Project:

Project Scope Proposed for Funding: (Project level environmental, preliminary planning, and ROW are ineligible uses of TDA funds.) Project Budget and Schedule

Project Eligibility: YES?/NO?
A. Has the project been approved by the claimant's go verning body? (If "NO," provide the approximate da te approval is anticipated). Project will be approved by Campbell City Council o n May 17, 2022.

NO
B. Has this project previously received TDA Article 3 funding? If "YES," provide an explanation on a se parate page. NO C. For "bikeways," does the project meet Caltrans min imum safety design criteria pursuant to Chapter 100 0 of the California Highway Design Manual? (Available on the internet v ia: http://www.dot.ca.gov ).

YES
D. Has the project been reviewed by the Bicycle and P edestrian Advisory Committee? (If "NO," provide an explanation). YES E. Has the public availability of the environmental co mpliance documentation for the project (pursuant to CEQA) been evidenced by the dated stamping of the document by the county clerk or county recorder? (required onl y for projects that include construction). Environmental compliance documentation will be subm itted by June, 2022.

NO
F. Will the project be completed before the allocation expires? Enter the anticipated completion date of project (month and year) June 2025
YES
G. Have provisions been made by the claimant to maint ain the project or facility, or has the claimant ar ranged for such maintenance by another agency? (If an agency other than the Claimant is to maintain the facility prov ide its name:

City will maintain. )
YES
Project
Phase TDA 3 Other Funds Total Cost Estimated Completion (month/year)

ENV -

PA&ED -
PS&E 6,000 6,000 Jun-25

ROW -
CON 50,869 5 0,869 Jun-25 Total Cost 56,869 - 56,869 Design and construct citywide shared lane markings; ADA traffic signal improvements; bike lanes, green bike lanes, and bike boxes; bike lanes on San Tomas Aquino Road; bike lanes on Bascom Aven ue and Campbell Avenue; Harriet Avenue sidewalks, c urb ramps, sharrows; Winchester Boulevard/Camden Avenue pedestrian impro vements; Annual Street Maintenance Project 22-BB (i ncludes sharrows and curb ramps on West Parr Avenue); Hamilton Avenue Resurfa cing Project 23-BB (includes sharrows, bike lanes, signs curb ramps); Campbell PDA Enhancements (includes bicycle and pedestrian impro vements along Civic Center Drive, Orchard City Driv e, and Campbell Avenue in Historic Downtown .

Engineering, construction, construction engineering, inspection

13.d
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Attachment: Resolution Attachment B (Approval of Transportation Development Act (TDA) Article 3 Grant Application for Fiscal Year 2022/23) City
Council
Report
TITLE: Resolution Commending Sergeant David Mendez for 25 Years of Service to the City of Campbell (Resolution/Roll Call Vote)

RECOMMENDED ACTION
That the City Coun cil adopt a Resolution commending Sergeant David Mendez for his 25 Years of Service to the City of Campbell.

BACKGROUND
Sergeant David Mendez retired from the City of Campbell Police Department on April 28, 2022. At this time, it would be appropriate for the City Council to adopt a Resolution commending Sergeant David Mendez for his outstanding service to the City. The Resolution will be formally presented to Sergeant David Mendez at a later date.

DISCUSSION
Sergeant David Mendez began employment with the City of Campbell on January 13, 1997. During his time with the Police Department, Sergeant Mendez served in many capacities as an Officer, Agent, and Sergeant. Sergeant Mendez was assigned as a Field Training Officer, Reserve Coordinator, Task Force Ag ent at the Santa Clara County Specialized Enforcement Team, Patrol Watch Commander, Major Accident Investigations Team Supervisor, Detective, and Traffic Sergeant.

Sergeant David Mendez joined the Special Weapons and Tactics (SWAT) team in 2000 and served as a SWAT team member, team leader, and head team leader for over 22 years.

Sergeant Mendez’s contributions to the department, and the relationships he developed within the community have been an asset to this department and the City.

FISCAL IMPACT
There is no fiscal impact associated with this commendation.

Item: 14
Category: CONSENT CALENDAR
Meeting Date: May 17, 2022
14 Packet Pg. 67
Commending Sergeant David Mendez for 25 Years of Service Page 2 of 2 Prepared by:

Dan Livingston, Police Captain
Reviewed by:

Gary Berg, Police Chief
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Sergeant Mendez's Retirement Resolution
14 Packet Pg. 68

RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL COMMENDING SERGEANT DAVID MENDEZ ON HIS 25 YEARS OF SERVICE TO THE

CITY OF CAMPBELL

WHEREAS, Sergeant David Mendez became a Police Officer in January 1997; and

WHEREAS, Sergeant Mendez has served as a Patrol Officer, Agent, Traffic Supervisor, Watch Commander, and Detective; and

WHEREAS, Sergeant Mendez has served in many specialty assignments including Field Training Officer, Major Accident Investigations Team Supervisor, and Reserve Coordinator; and

WHEREAS, Sergeant Mendez was assigned to the Santa Clara County Specialized Enforcement Team as a Narcotics Detective and ultimately as the Team Leader; and

WHEREAS, Sergeant Mendez has honorably served as a member and team leader of the Special Weapons and Tactics (SWAT) Team for over 22 years; and

WHEREAS, Sergeant Mendez has always had a commitment to providing excellent service to the Campbell community.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell recognizes and commends Sergeant David Mendez on his retirement from the City of Campbell after 25 years of service.

PASSED AND ADOPTED this ______ day of ________, 2022 by the following roll call vote:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers

APPROVED:

________________________
Paul Resnikoff, Mayor
ATTEST:

____________________________________
Dusty Christopherson, City Clerk

14.a
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Attachment: Sergeant Mendez's Retirement Resolution (Commending Sergeant David Mendez for 25 Years of Service)

City
Council
Report

TITLE: Resolution Commending Sergeant David Livingston for 18 Years of Service to the City of Campbell (Resolution/Roll Call Vote)

RECOMMENDED ACTION

That the City Council adopt a Resolution commending Sergeant David Livingston for his 18 Years of Service to the City of Campbell.

BACKGROUND

Sergeant David Livingston retired from the City of Campbell Police Department on April 30, 2022. At this time, it would be appropriate for the City Council to adopt a Resolution commending Sergeant David Livingston for his outstanding service to the City. The Resolution will be formally presented to Sergeant David Livingston at a later date.

DISCUSSION

Sergeant David Livingston began employment with the City of Campbell on January 12, 2004. During his time with the Police Department, Sergeant Livingston served in many capacities as both an Officer and Sergeant. Sergeant Livingston was assigned as a Field Training Officer, G ang Enforcement Officer, Crime Scene Technician , and Range Master. Sergeant Livingston was assigned as a Task Force Agent to the Santa Clara County Specialized Enforcement Team. As a supervisor, Sergeant Livingston served as a Patrol Watch Commander, Crime Scene Investigations Team Leader, Head Range Master, and Sniper Team Leader.

Sergeant David Livingston joined the Special Weapons and Tactics (SWAT) team in 2008 and served as a SWAT team member for 14 years.

Sergeant Livingston’s contributions to the d epartment and the relationships he developed within the community have been an asset to this department and the City.

FISCAL IMPACT

There is no fiscal impact associated with this commendation.

Item: 15
Category: CONSENT CALENDAR
Meeting Date: May 17, 2022
15 Packet Pg. 70
Commending Sergeant David Livingston for 18 Years of Service Page 2 of 2

Prepared by:

Ian White, Police Captain

Reviewed by:

Gary Berg, Police Chief

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Sergeant Livingston's Retirement Resolution
15 Packet Pg. 71
RESOLUTION NO._____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CAMPBELL COMMENDING SERGEANT DAVID LIVINGSTON
ON HIS 18 YEARS OF SERVICE TO THE CITY OF CAMPBELL

WHEREAS, Sergeant Livingston became a Police Officer in January 2004; and

WHEREAS, Sergeant Livingston was last assigned to Administration; and

WHEREAS, Sergeant Livingston has served as a patrol Watch Commander, Detective Sergeant, Sniper Team Leader and Crime Scene Team Leader during his tenure as a supervisor; and

WHEREAS, Sergeant Livingston has served in many specialty assignments including Field Training Officer, Crime Scene Investigation Team member, Range Master, Gang Enforcement; and

WHEREAS, Sergeant Livingston was assigned to the Santa Clara County Specialized Enforcement Team as a Narcotics Detective; and

WHEREAS, Sergeant Livingston has honorably served as a member of the Special Weapons and Tactics (SWAT) Team for 14 years; and

WHEREAS, Sergeant Livingston has always had a commitment to providing excellent service to the Campbell community.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell recognizes and commends Sergeant David Livingston on his retirement from the City of Campbell after 18 years of service.

PASSED AND ADOPTED this 17th day of May, by the following roll call vote:

AYES: Councilmembers

NOES: Councilmembers

ABSENT: Councilmembers
APPROVED:

________________________
Paul Resnikoff, Mayor
ATTEST:

____________________________________
Dusty Christopherson, City Clerk

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Attachment: Sergeant Livingston's Retirement Resolution (Commending Sergeant David Livingston for 18 Years of Service)

City
Council
Report

TITLE: Public Hearing to Consider a City -Initiated Zoning Code Text Amendment (PLN -2021-193) to Amend the Side -Yard Setback Requirements for Properties Located Within the M-1 (Light Industrial) and C-2 (General Commercial) Zoning Districts (Ordinance/Roll Call Vote)

RECOMMENDED ACTION

That the City Council introduce an Ordinance amending Chapter 21.10 of the Campbell Municipal Code revis ing the side -yard setback requirements for properties located within the M-1 (Light Industrial) and C-2 (General Commercial) Zoning Districts.

ENVIRONMENTAL DETERMINATION

The Planning Commission recommends that the City Council find that the proposed amendment exempt under Section 15061(b)(3) of the California Environment Quality Act (CEQA) Guidelines in that it can be seen with certainty that there is no possibility for the action to have a significant effect on the environment because the amendment is l imited in scope as to not effect substantive regulatory changes. Future development projects that utilize the setback exceptions identified in this zoning ordinance amendment will be subject to site specific discretionary approval and further environmental review.

BACKGROUND

At its meeting of December 14, 2021, the Planning Commission initiated a Zoning Code Text Amendment at the request of staff to revise the setback standards of the M-1 (Light Industrial) and C -2 (General Commercial) Zoning Districts . Staff requested initiation of this amendment in response to several applications currently under review that involve requests by the applicant for reduced side setbacks. These requests highlighted a need to examine the appropriateness of the current setback standard that applies residential setback standards to commercial and industrial properties and the lack of flexibility to adjust these standards. As compared to residential properties, the adjacency of industrial and commercial buildings does not pose issues of privacy, noise, or access to sunlight, requiring a more restrictive side setback.

The Planning Commission formally considered a draft ordinance at its meeting of April 12, 2022. After a brief discussion and several clarifying questions of staff, the Item: 16
Category: PUBLIC HEARINGS AND

INTRODUCTION OF

ORDINANCES
Meeting Date: May 17, 2022
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Commission voted 6 -0-1 (Commissioner Ostrowski absent) to recommend approval (reference Attachment B – Minutes).

DISCUSSION

For each zoning district, the Zoning Code provides a development standards table that identifies the general requirements for construction, including minimum building setbacks, maximum floor area ratio (FAR), and maximum building height. These standards are intended to provide the limitations for development based on the allowable land use (residential, commercial, industrial) an d the anticipated development intensity as established by the General Plan.

The Zoning Code allows for limited deviations from these development standards on a case-by-case basis as approved by the Planning Commission. For example, the Planning Commission may generally grant an increase in FAR "for a specific use at a specific location when it determines that circumstances warrant an adjustment." Similarly, with regards to rear setbacks, in some zoning districts, the Planning Commission "may grant a reduc tion or approve a structure to be placed on the rear property line…".

These exception provisions are intended to allow limited relief for projects when necessary and appropriate. However, while the Zoning Code allows for reductions to rear yard setbacks on commercially and industrially zoned properties it does not provide the same allowance for side yard setbacks. The side yard setback requirement for non - residential zoning districts, including the General Commercial (C -2) and Light Industrial (M-1) districts, is the same as residential zoning districts: the greater of 5 -feet or one half of the height of the adjacent building wall. This standard generally requires buildings to be stepped -back as the buildings increase in height in order to minimize their perceived massing.

Staff is currently reviewing several industrial and commercial applications that involve requests by the applicant for reduced side setbacks. These requests raise questions regarding the appropriateness of applying residential setback standards to commercial and industrial properties and highlight the lack of flexibility to adjust this standard, which is paradoxically provided for residentially zoned properties. As compared to residential properties, adjacent industrial and commercial pro perties do not pose issues of privacy, noise, or access to sunlight, such that side setbacks are not crucial. Additionally, providing flexibility to setback standards for commercial and industrial properties in not an uncommon practice in other cities and would generally be accepted as industry practice.

Absent an exception provision for the side -yard setbacks, the only remedy for these applicants seeking a reduction is to either request a variance or seek a zoning amendment to rezone the property to P -D (Planned Development), neither of which is an appropriate course of action.

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As provided for in State law and the City's Zoning Code, variances should be limited to those situations where the unique physical characteristics of a site make it difficult to develop under standard regulations and should only be granted to allow the disadvantaged property to develop in a manner consistent with nearby properties in the same zoning district. Given Campbell's flat topography and lack of unusual environmental constraints, the granting of variance is quite rare.

P-D zoning is intended to allow for a comprehensively planned development in a manner that existing zoning standards cannot accommodate, while still maintaining compliance with underlying General Plan land use designations. In this regard, this tool is intended to facilitate superior development, not to simply exempt projects from typical zoning standards that otherwise would apply. The Draft Envision Campbell General Plan Update, which was reviewed by the P lanning Commission and City Council in the fall of 2021, identifies a reduction in the use of P -D Zoning as part of the General Plan implementation. Staff will soon begin work on zoning code updates in association with the completion of objective standards and creation of zoning districts for the new General Plan, that will incorporate these provisions.

Proposed Amendments:

M-1 Zoning District : The proposed changes to the M -1 development table are twofold.

First, the Planning Commission recommends a gen eral reduction to the side -yard setback to a flat 5 -feet when the property abuts a non -residentially zoned property. The existing side setback of the greater of 5 -feet or one half of the wall height would continue to apply when a side property line abuts a residentially zoned property. This change recognizes that the vast majority of M -1 zoned properties are quite narrow such that a setback based on wall height would tend to make development challenging.

The second proposed change is to grant the Planning Commission the ability to allow a reduction to the side setback to zero, allowing placement of a building on a property line where a property line abuts a non -residentially zoned property , when it can establish two findings:

1. The height of the building wa ll, inclusive of a parapet, adjacent to the side property line is no taller than 30-feet and limited to one-story; and

2. The proposed building is designed for and would be limited to general industrial use, including manufacturing, processing, warehousing, s torage, assembly, and fabrication.

The intent of these findings is to allow traditional industrial buildings to be constructed on side property lines when abutting other industrial properties, comparable with existing provisions for rear property lines. This allows for a more efficient use of land by maximizing the width of narrow industrial properties. To minimize the visual effect of solid masonry fire-rated walls necessary for a building to be built on a property line , the height of such buildings would be limited to one-story at a height of a 30 -feet, inclusive of parapet (by comparison, the maximum height for the M -1 Zoning District is 45 -ft, excluding the parapet). Additionally, the building would need to be designed and 16 Packet Pg. 75
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restricted for industrial use, such that the provision could not be applied to other types of building such as an office or recreational facility where solid side walls would not be architecturally appropriate.

C-2 Zoning District: For the C-2 Zoning District, the proposed ordinance wo uld maintain the existing side setback standard of the greater of 5 -feet or one half of the wall height.

However, the Planning Commission would now be allowed to approve a side setback of no less than five feet irrespective of building wall height where a property line abuts a non-residentially zoned property, if it finds that "the reduced setback would enhance the architectural integrity of the building".

This finding is intended to provide greater discretion to the Planning Commission in its review of new commercial buildings and application of development standards. Through this process, the Commission can compel a greater degree of design quality in exchange for allowing the proposed setback reduction as part of the discretionary land use process on a c ase-by-case basis. As opposed to residential and mixed -use projects, which must be evaluated on compliance with objective standards per the Housing Accountability Act, the City maintains a high degree of discretion on non - residential development.

ANALYSIS
General Plan Conformance : Pursuant to C ampbell Municipal Code (CMC) Section

21.60.070, an amendment to the Municipal Code may only be approved if the decision - making body finds that: (1) the proposed amendment is consistent with the goals, policies, and actions of the General Plan; (2) the proposed amendment would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and (3) the proposed amendment is internally consistent with other applicable provisions o f the Zoning Code. Staff believes that these findings can be affirmatively established, as discussed below:

1. The proposed amendment is consistent with the goals, policies, and actions of the General Plan;

The proposed changes are intended to facilitate n ew commercial and industrial development by providing greater flexibility to side setback standards that can at times styme new projects. However, this flexibility is balanced against the need to respect the integrity of adjacent residential properties. In this manner, it can be found that the draft ordinance would further the following General Plan policies and strategies by encouraging continued investment in the M -1 and C-2 Zoning Districts, improving the built environment, minimizing impacts to resident ial properties, and furthering the economic development of the City.

Policy LUT-5.4: Industrial Neighborhoods: Safeguard industry’s ability to operate effectively, by limiting the establishment of incompatible uses in industrial neighborhoods and encouraging compatible uses. 16 Packet Pg. 76
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Strategy LUT-5.4b: Residential Adjacent to Industrial : Amend Area Plans and Zoning Ordinances to ensure that conflicts between residential and industrial uses are minimized.

Strategy LUT-5.4c: Redevelopment: Facilitate redevelopment opp ortunities in the McGlincy Lane area.

Policy LUT-5.6: Industrial Impact: Reduce the impact of existing industrial uses on adjacent residences, schools, and other sensitive uses.

Policy LUT-9.3: Design and Planning Compatibility : Promote high quality, creative design and site planning that is compatible with surrounding development, public spaces and natural resources.

Strategy LUT-13.1c: Fiscal Effects of Land Use : Evaluate the fiscal effects of different land uses on City revenues and services.

2. The propos ed amendment would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; As noted, the proposed ordinance would maintain existing setback requirements where property lines abut residentially zoned properties. As such, it would not create any new visual or massing impacts to existing residences that could be viewed as detrimental.

3. The proposed amendment is internally consistent with other applicable provisions of this Zoning Code.

The proposed text changes are self-contained to the "General Development Standards" tables for the C-2 and M-1 Zoning Districts and therefore, do not interface with any other section of the Zoning Code.

FISCAL IMPACT
There is no fiscal impact associated with this action. However, i f review of exception requests results in expenditure of staff time in excess of normal application fees, staff may seek creation of an additional "setback exception fee".

Prepared by:

Daniel Fama, Senior Planner
16 Packet Pg. 77

PLN-2021-193 ~ C-1/M-1 Side Setback ZTA Page 6 of 6

Reviewed by:

Rob Eastwood, Community
Development Director

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Draft Ordinance
b. PC Minutes (04-12-22)
16 Packet Pg. 78

ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AMENDING CHAPTER 21.10 OF THE CAMPBELL MUNICIPAL CODE TO REVISE THE SIDE YARD SETBACK REQUIREMENTS OF THE C-2
(GENERAL COMMERCIAL) AND M-1 (LIGHT INDUSTRIAL) ZONING
DISTRICTS (FILE NO. PLN-2021-193)

After notification and public hearing, as specified by law and after presentation by the Community Development Director, proponents and opponents, the hearing was closed.

After due consideration of all evidence presented, the City Council of the City of Campbell does ordain as follows:

SECTION 1. To encourage a more efficient use of land and to allow for more creative site design, the City Council finds it appropriate to revise the interior side setback requirements of the C-2 (General Commercial) and M-1 (Light Industrial) Zoning Districts.

SECTION 2. The City Council finds that the proposed ordinance is consistent with the goals, policies, and actions of the General Plan, including:

Strategy LUT-5.4b: Residential Adjacent to Industrial : Amend Area Plans and Zoning Ordinances to ensure that conflicts between residential and industrial uses are minimized.

Strategy LUT-5.4c: Redevelopment: Facilitate redevelopment opportunities in the McGlincy Lane area.

Policy LUT-5.6: Industrial Impact : Reduce the impact of existing industrial uses on adjacent residences, schools, and other sensitive uses.

Policy LUT-9.3: Design and Planning Compatibility : Promote high quality, creative design and site planning that is compatible with surrounding development, public spaces and natural resources.

Strategy LUT-13.1c: Fiscal Effects of Land Use: Evaluate the fiscal effects of different land uses on City revenues and services.

SECTION 3. The City Council fu rther finds that the proposed ordinance would not be detrimental to the public interest, health, safety, convenience, or general welfare of the city; and would be internally consistent with other applicable provisions of the Campbell Municipal Code.

SECTION 4. The City Council further finds that the adoption of the proposed ordinance qualifies as Exempt from the California Environmental Quality Act (CEQA) under Section 15061.b.3 which states that a project is exempt if the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no pos sibility that the

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Page 2 of 4 ends

activity in question may have a significant effect on the environment, the activity is not subject to CEQA review.

SECTION 5. C-2 Development Standards Table : Campbell Municipal Code Section

21.10.050.E, Table 2 -10 (General Development St andards) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

Table 2-10
General Development Standards - C-2 Zoning District
Development Feature C-2
Maximum floor area ratio 0.40 The planning commission shall have the authority to increase the F.A.R. for a specific use at a specific location when it determines that circumstances warrant an
adjustment.

Setbacks required
Front 10 ft.

Side (each) A minimum of five feet or one-half the height of the building wall adjacent to the side property line (whichever is greater).

The Planning Commission may allow a side setback of no
less than five feet irrespective of building wall height where a property line abuts a non-residentially zoned property, when it finds that the reduced setback would enhance the
architectural integrity of the building.

Street Side 10 ft.

Rear 10 ft. The planning commission may grant a reduction or approve a structure to be placed on the rear property line and may designate that additional landscaping and setback
requirements be provided at the front of the parcel.

Maximum height limit 75 ft.

Accessory structures See Section 21.36.020 (Accessory Structures) Fences, walls, lattice and screens See Section 21.18.060 (Fences, Walls, Lattice and Screens) Landscaping See Section 21.26.020 (Landscaping Requirements for Individual Zoning Districts)
Motor vehicle parking See Chapter 21.28 (Parking and Loading) Signs See Chapter 21.30 (Signs)

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SECTION 6. M-1 Development Standards Table : Campbell Municipal Code Secti on

21.10.080.E, Table 2 -13 (General Development Standards ) is amended to read as follows with underlining indicating new text and strikeouts (strikeout) indicating deleted text:

Table 2-13
General Development Standards - M-1 Zoning District
Development Feature M-1
Minimum parcel size 6,000 square feet
Maximum floor area ratio 0.40
The planning commission shall have the authority to increase the F.A.R. for a specific use at a specific location when it determines that circumstances warrant an adjustment.

Setbacks required
Front 10 ft.

Side (each) 5 ft. or one-half the height of the building wall adjacent to the side property line (whichever is greater) when the side property line abuts a residentially zoned property or 5 ft. when the side property line does not abut a residentially zoned property.

The Planning Commission may allow a side setback of less than five feet where a property line abuts a non-residentially zoned property, when it finds that:

1. The height of the building wall, inclusive of a parapet, adjacent to the side property line is no taller than 30-feet and limited to one-story; and

2. The proposed building is designed for and would be
limited to general industrial use, including
manufacturing, processing, warehousing, storage,
assembly, and fabrication.

Street side 10 ft.

Rear 10 ft.

The planning commission may grant a reduction or approve a structure to be placed on the rear property line and may designate that additional landscaping and setback requirements be provided at the front of the parcel.

Maximum height limit 45 ft.

Accessory structures See Section 21.36.020 (Accessory Structures) Fences, walls, lattice and
screens
See Section 21.18.060 (Fences, Walls, Lattice and Screens) Landscaping See Section 21.26.020 (Landscaping requirements for individual zoning districts)
Motor vehicle parking See Chapter 21.28 (Parking and Loading) Signs See Chapter 21.30 (Signs)

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SECTION 7. This Ordinance shall become effective thirty (30) days following its passage and adoption and shall be published, one time within fifteen (15) days upon passage and adoption in a newspaper of general circulation for the City of Campbell, County of Santa Clara.

PASSED AND ADOPTED this _____ day of ____________, 2022 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

________________________
Paul Resnikoff, Mayor

ATTEST:

_______________________________
Dusty Christopherson, City Clerk

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CITY OF CAMPBELL
Planning Commission Minutes

7:30 P.M. TUESDAY
April 12, 2022

PLANNING COMMISSION MEETING

The Planning Commission meeting on Tuesday, April 12, 2022, was called to order at 7:30 p.m. in the Council Chambers of City Hall, 70 N. First Street, Campbell, CA, by Chair Ching and the following proceedings were had, to wit:

ROLL CALL

Commissioners Present: Chair: Stuart Ching
Vice Chair: Adam Buchbinder
Commissioner: Matt Kamkar
Commissioner: Michael Krey
Commissioner: Andrew Rivlin
Commissioner: Alan Zisser

Commissioners Absent: Maggie Ostrowski

Staff Present: C ommunity Development
Director: Rob Eastwood
Senior Planner: Stephen Rose
City Attorney: William Seligmann
Exec. Assist . to the Com. Abby Jones
Development Director:

APPROVAL OF MINUTES

April 12, 2022

COMMUNICATIONS/AGENDA MODIFICATIONS OR POSTPONEMENTS

None

ORAL REQUESTS

None

OLD BUSINESS

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Chair Ching asked if there were any disclosures from the Commission.

There were none.

Chair Ching read Agenda Item No. 1 into the record as follows:

1. PLN-2021-193

Public Hearing to consider a City -initiated Zoning Code Text Amendment (PLN -2021-193) to amend the side- yard setback requirements for properties located within the M -1 (Light Industrial) and C -2 (General Commercial) Zoning Districts. Staff is recommending that this item be deemed Categorically Exempt under CEQA. Tentative City Council Meeting Date: May 17, 2022. Project Planner: Daniel Fama, Senior Planner

Senior planner Fama presented Staff reported dated 4/12/2022 and stated he is open to take questions the commission may have.

Commissioner Zisser asked is this a commonality and you have 0 setbacks would they be abutting to each other? Is ther e a downside to zero setbacks ? Does C-2 zoning cover the general downtown?

Vice Chair Buchbinder asked is this a different action than last December?

Senior Planner Fama stated it is distinct from the December 2021 meeting.

Chair Ching opened the hearing to the public.

Raja, Campbell Resident, stated most of the properties on Dell Ave are M-1 zoned. Is it a fire hazard to not have set back.

Chair Ching closed the hearing to the public.

Chair Ching opened the discussion to the commission.

Commissioner Zisser stated he would support the changes per the staff recommendation.

Commissioner Rivlin stated he voted no on this matter before and is still concerned to make changes, but he sees the adjustment allows the commission some say in removing the setback in needed. So, he can support in a sense the code requires the wall. In general, will support as proposed.

Commissioner Krey stated they don’t want the big bulky mass and now it makes sense he is for it.

Since the Commission has flexibility, he will support.

Commissioner Kamkar stated this plan is well thought out and will support.

Commissioner Buchbinder looks forward to seeing more spot fixes from Staff with help cleaning up the code and will support the recommendation.

Motion: Upon motion by Commissioner Krey, seconded by Commissioner Buchbinder, the Planning Commission adopted Resolution No. 46XX recommending to consider a City -initiated Zoning Code Text Amendment (PLN -2021-193) to amend the side-yard setback requirements for properties located within the M-

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1 (Light Industrial) and C -2 (General Commercial) Zoning Districts. by the following roll call vote:

AYES: Rivlin, Zisser, Kamkar, Krey, Buchbinder, Ching
NOES: None
ABSENT: Ostrowski
ABSTAIN: None

Chair Ching read Agenda Item No. 2 into the record as follows:

2. PLN-2022-31

Public Hearing to consider a City -initiated Revocation/ Modification (PLN-2022-31) of a previously approved Conditional Use
Permit/Administrative Planned Development Permit (PLN2011- 283) that allowed expansion of an existing liquor establishment (Khartoum Lounge) with late-night operational hours on property located at 300 Orchard City Drive, Suite 101, in the P -
D (Planned Development)
Zoning District. Staff is recommending that this item be deemed Statutorily Exempt under CEQA. Planning Commission action final unless appealed in writing to the City Clerk within 10 calendar days.

Project Planner: Rob Eastwood, Community Development Director

Director Eastwood stated that this Public Hearing to consider a city -initiated Revocation/ Modification (PLN -2022-31) of a previously approved Conditional Use Permit/Admini strative Planned Development Permit (PLN2011 -283) that allowed expansion of an existing liquor establishment (Khartoum Lounge) with late -night operational hours on property located at 300 Orchard City Drive, Suite 101, in the P- D (Planned Development) Zoni ng District. Staff is recommending that this item be deemed Statutorily Exempt under CEQA.

City Attorney Bill Seligmann stated the revocation rights requires more formality in which an oath must be sworn by the public and members of the Board and Staff . Attorney Bill Seligmann recited the oath for the public hearing for PLN2011-283, as follows.

Do you solemnly state, under penalty of perjury, that the evidence that you shall give in this issue (or matter) shall be the truth, the whole truth, and nothing but the truth?

Director Eastwood gave background on Khartoum lounge. CUP placed on the establishment there was a clause in the condition and introduced Campbell Police Representatives to give their report.

Campbell Police Captain informed the Commission that Captain White and Owner Brandon had a meeting.

Sargent Mark Cutler has dispatch run all incidents run for the lounge and they gave them a report once the report came in, he verified that each incident was correct in siting the bar

Brandon/Applicant Owner stated he has planned a 4-step path to recovery. Bar has been 38 years in his family. Short term goal to short term goal to fix and long term is to see the hours restored.

Accepting responsibility. The covid 19 environment unleashed failed to rise to the challenge.

Lack of personnel and they faced a fake ID that eluded the security efforts he is confident they he has confiscated the fake ID’s and it should be. Several incidents happened that didn’t come from their bar. Hired a new staff with experience. Enforced a dress code. They have patron scan to maintain the list and together the changes have had an impact on operations reducing hours will not stop the fake ID’s and look forward to implementing. Reliant on after business hours. Hopes the

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council would like to see the hours restored. They need to be open through the late hours to show they can adhere to the rules. If the council can take into consideration.

Chair Ching opened the hearing to the public.

Dave Lemley- established his business 30 years ago and he appreciates being a part of the community. Working for bars and clubs has a time 2-3 years. Outpouring of community support for Khartoum. There have been bumps in the road but will pull through.

Christian Wellisch is very f amiliar with this establishment a nd wants to share why this place is important. Mr. Wellisch stated that Khartoum provides a family for the community. It’s that one place that always treats him with respect. It’s important to clarify the issues. The calls from the staff so it shouldn’t count against them. One of the incidents reported were falsified to get the bar in trouble purposely.

Mrs. Theresa Stuart a Campbell community member has lived in Campbell for 30 years and had her 21st drink at Khartoum. It’s a great place and she will do whatever they can to keep the hours.

Hans Heller, Assistant Manager wanted to state that the public health trumps everything that’s why we’re here and they are here to take responsibility for the mistakes. The last 12 years ran a bar in San Jose that is full of un -friendly people Khartoum has such a great reputation. Some of the complaints are due to extraordinary circumstances. With regards to the letter, they were aware of the report, and they’ve spoken to the captain. Underage drinkers. They discovered they noticed a hack to detect the fake ID’s eradicated the underage drinking. The 82 is not accurate

Christopher Worlock stated he worked for Khartoum for 25 years and seen lots of changes in Campbell. Campbell has become the Santa Cruz Ave. Had the opportunity to speak to the chief.

They want to do better.

William, a Campbell resident, has been going to Khartoum for a long time. He is no longer a drinker, but he still enjoys the establishment. He stated it is a younger crowd, but it is not a problem. There have been calls but the staff are the ones who are making the calls for service.

Sandra Marino was employed by Khartoum she stated Khartoum is like Cheers. They have been so helpful to her in her employment and in her personal life. She would be sad to see them have to suffer by reducing hours.

Daniel Weger is a current employee started in 2007 and came back august 2021. He has overseen the incidents that have happened. Most of them happen in the parking lot. Mr. Weger stated they cannot manage everyone in the club and in the lot at the same time. When they call for support, they work closely with the police. The had an iss ue with the Fake ID’s because they are hard to detect. He explained on one of the complaints regarding someone having a weapon- was from a police officer not a patron. The employees are suffering from lack of income.

Mark Donahue stated the problem is the other areas waiting to get into the bar not the crowd from Khartoum.

Victor Dobsin stated he not a Campbell resident, but he comes to Khartoum. The initiatives Khartoum has taken to address the issues has been big.

Robert Lopez stated that he would like the Board to consider the environment Khartoum is trying to foster. There’s a lack of places for young professionals and this action will have a general effect on the community.

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Rocky, San Jose resident stated that downtown Campbell used to close at 7 pm until Khartoum came into town.

Raja asked how does it help to change the hours? He mentioned there is no data to ju stify the action. Having a hard time understanding this action against Khartoum.

Owner/Applicant Brandon stated his bar is a big deal there had been a lot of issues and they are embarrassing to admit but he will accept the recommendation of probation and would like to ask the Board to consider the 2 months’ time they already served. It will help to extend the hours because of financial limitation.

Chair Ching closed the public hearing.

After the discussion the commission made a motion.

Motion: Upon motion by Commissioner Krey, seconded by Commissioner Kamkar, the Planning Commission adopted Resolution No. APPROVING A CITY-INITIATED MODIFICATION (PLN-2022-31) TO A PREVIOUSLY APPROVED CONDITIONAL

USE PERMIT AND ADMINISTRATIVE PLANNED DEVELOPMENT PERMIT (PLN-2011-283), Reducing the hours to the closing time of 12 AM until August 1, 2022, AMENDING THE CONDITIONS OF APPROVAL FOR AN EXISTING LIQUOR ESTABLISHMENT (KHARTOUM LOUNGE) LOCATED AT 300
ORCHARD CITY DRIVE, SUITE 101, by the following roll call vote:

AYES: Rivlin, Zisser, Kamkar, Krey, Buchbinder, Ching
NOES: None
ABSENT: None
ABSTAIN: None

Chair Ching called for a Break at 9:41 pm

Chair Ching read Agenda Item No. 3 into the record as follows:

3. PLN-2021-12 Scoping Meeting for the Environmental Impact Report (EIR) for the Envision Campbell General Plan and Housing Element Update which consists of goals, policies, actions, and an updated land use map that will guide future development activities and City actions. No specific development projects are proposed as part of the General Plan and Housing Element Update. The purpose of thi s meeting is to receive verbal or written comments and suggestions regarding the scope and content of the EIR to be prepared for the proposed project from interested public agencies, organizations, and individuals.

Buchbinder-asked the community asked w e have heard public comments and they state the opposite of what Denovo is saying what they are looking for.

Director Eastwood stated that every year we bring it to the council. The city has changed the rules since the last Housing Element Plan.

Director Eastwood invited Ben to share.

Ben Ritchie presented the summary of EIR process and next steps about how the public can

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provide public feedback. This presentation is not intended to be a plan focusing on topics that should be addressed. Nest steps in the process and how the public can provide input. This is to enhance public participation a notice will go out for a 45-day review period we'll then take stock of the comments provide written responses to comments and prepare the final EIR and then we'll move forward with Planning Commission and ultimately The City Council for hearings to certify the EIR. Ben concluded his presentation and opened to answer any questions from the planning commission.

Commissioner Krey followed up to ask Ben to identify additional areas. Are there any issues that need to be addressed that are not being covered by the EIR?

Chair Ching opened the hearing to the public.

Jim Sullivan commented that he recalls plan includes 95 parcels of land and is a lot of activity to look at. The big ones are greenhouse gas, traffic, and utility capacity. He understands densities doesn’t go to EIR consideration, but it does address the number of units that are being comprised.

Asked for the commission to explain the 16-18 a gap.

Rocky Carinjol wanted to make a comment on water storage for fire protections. EIR should generate a trip study on how many are coming and going.

Dennis Randall wanted to clarify how is the ratio for 8000 units being assumed for the parking.

Chair Ching Closed the public hearing.

Commissioner Zisser assuming that all areas will be covered on the EIR. He wants to reiterate that he’s a lot of comment and the big items people are concerned about are traffic, parking, and water. He stated that there’s no open space and would like to see this is mentioned in the EIR.

Commissioner Rivlin wanted to state that there should be night sky protection as a part of this growth.

Commissioner Krey wanted to make sure parking is included. We will also need alternatives to parking like bike trails, public transportation etc. and hopes the water need is considered as well as alternative energy needs.

Commissioner Kamkar wanted to mention a couple of points regarding priority of handling issues.1.) We should prioritize some examples over another. Like open space should be a priority over height. Also mentions we should close the density gaps. To ensure certainty in the numbers.

Commissioner Buchbinder stated it makes sense to allow flexibility to have a small amount of overlap. Wanted to clarify Is there a climate action plan and is it relevant to this plan.

Director Eastwood explained that the Council is evaluating the work plan and budget for 2022 to start a climate action plan after the General Housing Element and Plan are completed. The EIR has an element that will address the significant greenhouse gas impacts and that would create a platform for a mitigation strategy and start evaluating climate actions. So, the EIR starts as a foundation to start the work.

Commissioner Buchbinder asked if the elements include the impact from car traffic. Both noise and air quality affects health. He’d like to thank the Staff and is pleased that the Commission and

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Staff are planning to improve the jobs and housing balance.

Chair Ching stated he’d like to emphasize public open space as a part of the reporting. We need to consider public services that consider people with disabilities and special needs.

Director Eastwood developing a budget for 2022 start after Housing element is completed. Staff is working on creating a platform to evaluate and will begin the real work spring of next year.

Chair Ching read the agenda item 4 into record as follows.

4. PLN-2021-12 Study Session to review and provide feedback on goals, policies, and strategies aimed at producing, protecting, and affirmatively furthering fair housing in Campbell and addressing key housing issues facing the community as part of Campbell’s Plan for Hous ing (Housing Element Update).

Director Eastwood introduced M-Group consultants, Sung Kwong. Director Eastwood stated that there was a meeting held a month ago to lay out the outline for tonight’s presentation. There have been 4-6 meetings on how to get feedback from the public. We will discuss tonight, and The Commission can give feedback on what to take back to the City Council.

Sung Kwong with M-Group consultant presented his report on Housing element Update.

***
Chair Ching adjourned the meeting at 12 A.M.

ADJOURMNENT

The Planning Commission meeting adjourned at 12 A.M., to the next Regular Planning Commission Meeting on Tuesday, April 26, 2022, at City Hall, Council Chambers, 70 N. First Street, Campbell, CA.

PREPARED BY: Abby Jones, Executive Assistant

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City
Council
Report

TITLE: Introduction of Ordinance Adding Chapter 6.19 and Amending Sections 6.10.020 and 6.10.170 of the City of Campbell Municipal Code to Implement AB 1276 Single -Use Foodware Accessories and Standard Condiments, and Enforce CALGreen Building Standards Code with the City’s Administrative Process (Ordinance/Roll Call Vote)

RECOMMENDED ACTION

That the City Council introduce and Ordinance adding Chapter 6.19 and amending Sections 6.10.020 and 6.10.170 of the City of Campbell Municipal Code implementing new state legislative requirements for single -use foodware accessories and standard condiments, and establishing an enforcement process for CALGreen Building Code.

BACKGROUND

Every year in the United States, disposable foodware makes up an estimated 4.9 million tons of waste. Food accessories clog landfills, complicate recycling, and pollute streets and waterways in our communities. In an ef fort to reduce waste, on September 20, 2018, Governor Brown signed AB 1884, prohibiting full -service restaurants from providing single -use plastic straws unless requested by the consumer. On October 5, 2021, Governor Newsom signed AB 1276, which expanded o n AB 1884 to require single use accessory foodware (e.g., utensils, chopsticks, straws, stirrers) and condiments to be provided only upon consumer request, among other related requirements.

Separately, Chapter 6.12 of the Municipal Code codifies the CALGre en Building Standards Code (CALGreen). The purpose of CALGreen is to enhance building design and construction, as well as encourage sustainable construction practices. As it stands, Chapter 6.12 of the Municipal Code does not include an administrative enfo rcement process for CALGreen requirements. The amendment to Sections 6.10.020 and

6.10.170 will provide an enforcement mechanism for both CALGreen and Chapter 6.19 implementing AB 1276.

DISCUSSION

Staff recommends Council adopt the following additions and amendments to the Campbell Municipal Code as follows:

Item: 17
Category: PUBLIC HEARINGS AND

INTRODUCTION OF

ORDINANCES
Meeting Date: May 17, 2022
17 Packet Pg. 90
Introduction of Ordinance Adding Chapter 6.19 & Amending Sections 6.10.020 and 6.10.170 Page 2 of 3
Adopt Chapter 6.19:

Chapter 6.19 implements AB 1276, California Public Resources Code Chapter 5.2, prohibiting food facilities and third -party food delivery platforms from providing single - use foodware accessories and standard condiments unless requested by the consumer.

The State requires jurisdictions to comply with California Public Resources Code Section 42272 and appoint an enforcement agency by June 1, 2022. The enforcement section of Chapter 6.19 states that violations of the new chapter will be subject to the administrative penalties and procedures in Chapter 6.10 of the City’s Municipal Code.

Amend Section 6.10.020:

Section 6.10.020 of the City’s municipal code defines and provides examples of nuisance conditions applicable for administrative penalties and procedures. The amendment to Section 6.10.020 of the Municipal Code will add Chapters 6.19 and 6.12 to the list of Municipal Chapters and Sections applicable for administrative penalties and procedures.

Amend Section 6.10.170:

The amendment to section 6.10.170 states that violations of the Campbell Municipal Code shall constitute a fine of not more than one hundred dollars, unless specified elsewhere in the code.

FISCAL IMPACT
The introduction and adoption of this Ordinance will have no fiscal impact on the City.

The overall implementation of AB 1276 will include decreased costs for food facilities as less single-use foodware accessories and standard condiments are used.

Prepared by:

Peri Newby, Environmental Program
Specialist
Reviewed by:

Todd Capurso, Director of Public Works
17 Packet Pg. 91

Introduction of Ordinance Adding Chapter 6.19 & Amending Sections 6.10.020 and 6.10.170 Page 3 of 3

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Ordinance
b. Public Resources Code Section 42270
17 Packet Pg. 92
ORDINANCE NO. _________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL ADDING CHAPTER 6.19 AND AMENDING SECTIONS 6.10.020 AND 6.10.170 OF THE CITY OF CAMPBELL MUNICIPAL CODE TO IM PLEMENT AB 1276 SINGLE -USE

FOODWARE ACCESSORIES AND STANDARD CONDIMENTS, AND ENFORCE CALGREEN BUILDING STANDARDS CODE WITH THE CITY’S ADMINISTRATIVE

PROCESS

THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES HEREBY ORDAIN AS FOLLOWS:

SECTION ONE: Chapter 6.19 of the Campbell Municipal Code is adopted to read as follows:

CHAPTER 6. 19 – SINGLE-USE FOODWARE ACCESSORIES AND STANDARD

CONDIMENTS

6.19.010 Findings and purpose.

The City Council finds and determines that:
(1) The use of single -use foodware accessories and standard condiments is detrimental to the environment, public health, and welfare. (2) The manufacture and distribution of single -use foodware accessories and standard condiments requires utilization of natural r esources and results in the generation of greenhouse gas emissions.
(3) Single-use foodware accessories and standard condiments contribute to environmental problems, including litter in storm drains, creeks, the bay, and the ocean.
(4) Single-use foodware accessories and standard condiments provided by retail establishments impose unseen costs on consumers, local governments, the state, and taxpayers, and constitute a public nuisance. (5) On September 20, 2018, Governor Brown signed AB 1884 (Calderon, 2018), prohibiting full -service restaurants from providing single -use plastic straws unless requested by the consumer.
(6) On October 5, 2021, Governor Newsom signed AB 1276 (Carrillo, 2021), which expanded on AB 1884 to require accessory foodware (e.g., utensils, chopsticks, straws, stirrers) and condiments to be provided only upon consumer request, among other related requirements.

The City Council of the City of Campbell does, accordingly, find a nd declare that it should enforce the provisions of AB 1276, restricting the use of single -use foodware accessories and standard condiments.

The City has a substantial interest in protecting its residents and the environment from negative impacts from single-use foodware accessories and standard condiments.

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Attachment: Ordinance (Introduction of Ordinance Adding Chapter 6.19 & Amending Sections 6.10.020 and 6.10.170)

6.19.020 Enforcement of State Law.
(a) In compliance with California Public Resources Code section 42272, any failure to comply with any provision of Chapter 5.2 (commencing with Section 42270) of Part 3 of Division 30 of the California Public Resources Code , as it now exists or may subsequently be amended, or any successor provisions adopted by the State Legislature shall constitute a violation of this Chapter. (b) The first and second violations of this Chapter shall result in a notice of violation without a fine , and any subsequent violation shall constitute an infraction punishable by a fine of twenty -five dollars ($25) for each day in violation, but not to exceed three hundred dollars ($300) annually. Each violation of the provisions of this chapter shall be enforceable as provided in Section 6.10.180 of this code.

SECTION TWO: Subparagraph (Q) of paragraph (6) of subsection (a) of Campbell Municipal Code Section 6.10.020 of the Campbell Municipal Code is hereby amended to read as follow:
(Q) A violation of any of the provisions of Campbell Municipal Code Chapters

5.24, 5.28, 5.29, 5.30, 5.36, 5.48, 5.58, 6.11, 6.12, 6.19 , 6.20, 6.30, 6.40,

8.34, 8.38, 8.40, 8.42, 11.04, 11.08, 11.12, 11.16, 11.32, 13.04, or 14.02,

SECTION THREE : Subsection (a) of Campbell Municipal Code Section 6.10.170 is hereby amended to read as follows:
(a) It is unlawful for any person, firm, corporation or other entity to violate any provision, or fail to comply with any mandatory requirement of this chapter. Except as otherwise provided in subsection (b) of this section, or elsewhere in this Code, any person, firm, corporation or other entity violating any provision, or failing to comply with any mandatory requirement of this chapter is guilty of an infraction, and upon conviction shall be published by a fine of not more than one hundred dollars.

SECTION FOUR: This Ordinance shall be in full force and effect thirty (30) days after its final passage ; and the Ordinance shall be published within fifteen (15) days after the adoption, together with the names of those Councilmembers voting for or against same, in The Metro, a newspaper of gener al circulation circulated in the City of Campbell, Santa Clara County, State of California.

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Attachment: Ordinance (Introduction of Ordinance Adding Chapter 6.19 & Amending Sections 6.10.020 and 6.10.170)

PASSED AND ADOPTED this ____ day of _________, 2022 by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAINED: COUNCILMEMBERS:

APPROVED:
______________________________
Paul Resnikoff, Mayor

ATTEST:
______________________________
Dusty Christopherson, City Clerk

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Attachment: Ordinance (Introduction of Ordinance Adding Chapter 6.19 & Amending Sections 6.10.020 and 6.10.170) Code: Select Code Section: 1 or 2 or 1001 Search
42270.
42271.

Up^ Add To My Favorites
PUBLIC RESOURCES CODE - PRCDIVISION 30. WASTE MANAGEMENT [40000 - 49654] ( Division 30 added by Stats. 1989, Ch. 1096, Sec. 2. ) PART 3. STATE PROGRAMS [42000 - 42999] ( Part 3 added by Stats. 1989, Ch. 1096, Sec. 2. ) CHAPTER 5.2. Single-Use Foodware Accessories and Condiments [42270 - 42273] ( Heading of Chapter 5.2 amended by Stats. 2021, Ch. 505, Sec. 1. )
For purposes of this chapter, the following definitions apply:
(a) “Consumer” has the same meaning as in Section 113757 of the Health and Safety Code. (b) “Food facility” has the same meaning as in Section 113789 of the Health and Safety Code. (c) “Ready-to-eat food” has the same meaning as in Section 113881 of the Health and Safety Code. (d) “Single-use” means designed to be used once and then discarded, and not designed for repeated use and sanitizing.
(e) “Single-use foodware accessory” means all of the following single-use items provided alongside ready-to-eat food:
(1) Utensils, which is defined as forks, knives, spoons, and sporks. (2) Chopsticks.
(3) Condiment cups and packets.
(4) Straws.
(5) Stirrers.
(6) Splash sticks.
(7) Cocktail sticks.
(f) “Standard condiment” means relishes, spices, sauces, confections, or seasonings that require no additional preparation and that are usually used on a food item after preparation, including ketchup, mustard, mayonnaise, soy sauce, hot sauce, salsa, salt, pepper, sugar, and sugar substitutes. (g) “Third-party food delivery platform” has the same meaning as in Section 113930.5 of the Health and Safety Code.
(Amended by Stats. 2021, Ch. 505, Sec. 2. (AB 1276) Effective January 1, 2022.) (a) Except as provided in subdivisions (c) and (d), a food facility, for on-premises dining or when using a third-party food delivery platform, shall not provide any single-use foodware accessory or standard condiment packaged for single use to a consumer unless the single-use foodware accessory or standard condiment is requested by the consumer.
(b) Single-use foodware accessories and standard condiments packaged for single use provided by food facilities for use by consumers shall not be bundled or packaged in a manner that prohibits a consumer from taking only the type of single-use foodware accessory or standard condiment desired without also having to take a different type of single-use foodware accessory or standard condiment.
(c) A food facility may ask a drive-through consumer if the consumer wants a single-use foodware accessory if the single-use foodware accessory is necessary for the consumer to consume ready-to-eat food, or to prevent spills of or safely transport ready-to-eat food.
(d) A food facility that is located entirely within a public use airport, as defined in Section 77.3 of Title 14 of the Code of Federal Regulations, may ask a walk-through consumer if the consumer wants a single-use foodware Home Bill InformationCalifornia Law PublicationsOther ResourcesMy SubscriptionsMy Favorites

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Attachment: Public Resources Code Section 42270 (Introduction of Ordinance Adding Chapter 6.19 & Amending Sections 6.10.020 and 42272.
42273.
accessory if the single-use foodware accessory is necessary for the consumer to consume ready-to-eat food, or to prevent spills of or safely transport ready-to-eat food. (e) (1) A third-party food delivery platform shall provide consumers with the option to request single-use foodware accessories or standard condiments from a food facility serving ready-to-eat food. (2) If a food facility uses any third-party delivery platform for ready-to-eat food, the food facility shall customize its menu with a list of available single-use foodware accessories and standard condiments, and only those single-use foodware accessories or standard condiments selected by the consumer shall be provided by the food facility. If a consumer does not select any single-use foodware accessories or standard condiments, no single-use foodware accessory or standard condiment shall be provided by the food facility for delivery of ready-to-eat food. (f) Nothing in this section shall prohibit a food facility from making unwrapped single-use foodware accessories available to a consumer using refillable self-service dispensers that dispense one item at a time to allow for single- use foodware accessories to be obtained.
(g) Nothing in this section shall prohibit a food facility from making standard condiments available to a consumer using refillable self-service dispensers to allow for standard condiments to be obtained. A food facility that offers standard condiments is encouraged to use bulk dispensers for the condiments rather than condiments packaged for single use.
(h) Nothing in this section shall prevent a city, county, city and county, or other local public agency from adopting and implementing an ordinance or rule that would further restrict a food facility or a third-party food delivery platform from providing single-use foodware accessories or standard condiments to a consumer. (i) A food facility is encouraged, but not required, to take actions in addition to the requirements of this section that support a goal of reducing the use of and waste generated by all single-use food service products. (Amended by Stats. 2021, Ch. 505, Sec. 3. (AB 1276) Effective January 1, 2022.) (a) On or before June 1, 2022, a city, county, or city and county shall authorize an enforcement agency to enforce this chapter.
(b) The first and second violations of this chapter shall result in a notice of violation, and any subsequent violation shall constitute an infraction punishable by a fine of twenty-five dollars ($25) for each day in violation, but not to exceed three hundred dollars ($300) annually.
(Added by Stats. 2021, Ch. 505, Sec. 4. (AB 1276) Effective January 1, 2022.) This chapter does not apply to any of the following:
(a) Correctional institutions, which has the same meaning as in Section 7502 of the Penal Code. (b) Health care facilities licensed pursuant to Article 1 (commencing with Section 1250) of Chapter 2 of Division 2 of the Health and Safety Code or facilities that are owned or operated by a health care service plan licensed pursuant to Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code. (c) Residential care facilities licensed pursuant to Division 2 (commencing with Section 1200) of the Health and Safety Code.
(d) Public and private school cafeterias, as referenced in paragraph (1) of subdivision (b) of Section 113789 of the Health and Safety Code.
(Added by Stats. 2021, Ch. 505, Sec. 5. (AB 1276) Effective January 1, 2022.)

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Attachment: Public Resources Code Section 42270 (Introduction of Ordinance Adding Chapter 6.19 & Amending Sections 6.10.020 and

City
Council
Report

TITLE: Introduction of Proposed Fiscal Year (FY) 2023 Operating Budget and 2023 - 2027 Five-Year Capital Improvement Plan (CIP)

RECOMMENDED ACTION

That the City Council review the Proposed Fiscal Year (FY) 2023 Operating Budget and 2023-2027 Capital Improvement Plan (CIP) as presented; provide direction to staff to proceed with finalizing the budget; and establish June 21, 2022 as the da te for a public hearing and adoption of the FY 2023 Operating Budget and CIP, as well as the Gann Appropriations Limit.

BACKGROUND

The Proposed Fiscal Year (FY) 202 3 Operating Budget and 202 3 - 2027 Five-Year Capital Improvement Plan (CIP) has been poste d on the City’s website at https://www.ci.campbell.ca.us/151/Budget . Also posted at this location is the complete Second Update of the Seven-Year Financial Forecast which covers FY 2023 through FY 2029. The purpose of this agenda item is to formally introduce the proposed operating budget and CIP to the City Council and the public and to obtain feedback and direction prior to the scheduled adoption on June 21, 2022.

DISCUSSION

For ease of viewing, staff has attached to this report the following items which are also included within the Budget and CIP book:

• City Manager Transmittal Letter
• Proposed Approving Resolutions
o FY 2023 Operating and Capital Budget
o FY 202 3 CIP Conformance to General Plan (to be reviewed by the Planning Commission on May 24, 2022)

Thank you for your review and consideration of the Proposed Fiscal Year (FY) 202 3 Operating Budget and 202 3 - 2027 Five-Year Capital Improvement Plan (CIP). Staff looks forward to speaking with you further on May 17, 2022.

FISCAL IMPACT

Item: 18
Category: PUBLIC HEARINGS AND

INTRODUCTION OF

ORDINANCES
Meeting Date: May 17, 2022
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Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets Page 2 of 2 Complete fiscal impacts are provided with the City Manager’s Transmittal Letter and the Budget and CIP documents.

Prepared by:

Will Fuentes, Finance Director

Approved by:

Brian Loventhal, City Manager

Attachment:
a. City Manager's Transmittal Letter
b. Resolution - FY 2023 Operating and Capital Budget
c. Resolution - FY 2023 Conformance to General Plan
18 Packet Pg. 99

May 17, 2022

Honorable Mayor, Vice-Mayor, and City Councilmembers:

I am pleased to introduce to you the Proposed Fiscal Year (FY) 202 3 Operating Budget and 2023 - 2027 Five-Year Capital Improvement Plan (CIP) . The Operating Budget and CIP serve as a policy document, a financial plan, a communication's device, and an operation’s guide; reflecting the policies, goals, programs , and service priorities and values of the City Council and the Campbell community. Similar to prior years, i t was developed through an iterative process that included several discussions and study sessions with the City Council and the community that occurred on the following dates:

• February 1, 2022 – FY 2022 Mid-Year Fiscal Update
1 • February 24, 2022 –Council Priority Setting Session2 • April 5, 2022 – Budget Study Session (Workplans)3
• April 25, 2022 – Budget Study Session (Preliminary Budget and CIP)4

It was also developed based upon professional recommendations made by each member of the Executive Team and several other factors which will be discussed throughout this transmittal letter . The budget development process though continues to be an iterative process and there will be additional opportunities for Council feedback as well as community input on May 17 (Budget Introduction ) and June 21 (Budget Adoption). Any further Council feedback that reaches majority consensus at the May 17 Budget Introduction will be incorporated into the June 21 Budget Adoption if it is fiscally feasible. In preparation for those meetings and so as to provide an high-level overview of the proposed budget and CIP , this transmittal letter will address the following items:

• A – City Council Strategic Priorities and Workplans
• B – American Rescue Plan Act (ARPA) Usage
• C – Staffing Plan and Costing Assumptions
• D – Financial Summary
• E – Economic Update and Outlook

1 FY 2022 Mid-Year Fiscal Update – Item #11 (February 1, 2022) - https://www.campbellca.gov/AgendaCenter/ViewFile/Agenda/_02012022-2450 2 Council Priority Setting Session – Item #1 (February 24, 2022) - https://www.campbellca.gov/AgendaCenter/ViewFile/Agenda/_02242022-2463 3 Budget Study Session – Item #1 (April 5, 2022) -
https://www.campbellca.gov/AgendaCenter/ViewFile/Agenda/_04052022-2485 4 Budget Study Session – Item #1 (April 25, 2022) -
https://www.campbellca.gov/AgendaCenter/ViewFile/Agenda/_04252022-2500

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) • F – Second Update of Long-Range Forecast
• G – Potential Revenue Measures
• H – Federal and State Aid
• I – Budget Awards
• J – Next Steps
• K – Conclusions and Acknowledgements
• Exhibit A – Workplans
• Exhibit B – Significant New and Increased General Fund Supplies and Services

A – CITY COUNCIL STRATEGIC PRIORITIES AND WORKPLANS

As mentioned previously, the Council held a Priority Setting Session with staff on February 24 to establish updated priorities for FY 2023. These updated priorities are shown in Table 1 below and were used as the starting point in developing the proposed budget and CIP:

Table 1 – FY 2023 Council Priorities
Strategic
Objectives Council Priorities Comments by Council Members Land Use
Comprehensive
Long-Term Land Use
Planning
• Complete General Plan update
• Complete Housing Element
• Adopt objective standards
• Legislation - Keep the City Council and
community informed about State
legislation that would impact the City
and implement in a timely manner

Measure O
Implementation

• Continue to implement Measure O
projects
Financial Health
Financial Stability • Prioritize and maintain essential services and evaluate service level
adjustments
• Develop strategic staffing plan
• Consider economic development
strategy-Attracting businesses
• Strategically use of ARPA funds
• Review impact fees
• Consider short term rental fees
• Plan for infrastructure and building
maintenance

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) Strategic
Objectives Council Priorities Comments by Council Members Environment
Sustainability • Consider climate action planning upon
completion of General Plan and
Housing Element
• Continue water conservation efforts

Staff confirmed these priorities with Council at a Budget Study Session on April 5 and also presented FY 2023 Proposed Workplans during the same meeting. While ensuring proper alignment to Council priorities was staff’s primary objective in developing workplans, staff also prepared other proposed workplan items necessary to maintain existing operations, meet increasing service level demands and activity coming out of the pandemic, and support planned CIP projects . Following the April 5 meeting, staff updated the FY 2023 Proposed Workplans to reflect Council feedback received during that meeting. Updated workplans are now shown as Exhibit A of this transmittal letter. Both the workplans and Council strategic priorities were primary factors and considerations in developing the proposed budget and CIP documents and that is reflected throughout.

B – AMERICAN RESCUE PLAN ACT (ARPA) USAGE

Since the City will receive a significant amount of one-time American Rescue Plan Act (ARPA) monies, the appropriate and fiscally prudent use of those funds was a major consideration by staff when developing the proposed budget and CIP. And as discussed with Council previously, the City of Campbell has been allocated $9.997 million in ARPA funds; to be received in equal payments of $4.999 million each in FY 2021 and FY 2022. Per ARPA guidelines, the City must commit (appropriate and encumber) these funds by December 31, 2024 and spend them down fully by December 31, 2026. Any uncommitted or unspent funds after these deadlines are subject to returned to the federal government.

Additionally, per US Treasury guidance, ARPA funds may be used for the following purposes in order to support recovery from the pandemic and fiscal stability and resiliency:

1. Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic

2. Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff

3. Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector

4. Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical infrastructure sectors

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets)

5. Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet

Using ARPA funds to replace lost public sector revenue provides cities the most flexibility in how they can use the funds; with little prohibitions on use other than reserve replenishment, debt payments, pension paydowns, or tax deferrals . Initially though, when the US Treasury released its Interim Final Rule on ARPA, a very complex formula and set of factors were required to calculate a city’s level of pandemic related revenue loss. However, in the Final Rule released in late January 2022, cities may now claim a standard revenue loss of up to $10.0 million (without calculation) and use its ARPA allocations up to that amount to provide any service traditionally provided by local governments . This is analogous to the Standard Deduction on one’s personal taxes and reduces compliance reporting significantly. As such, it is welcome news to smaller agencies with limited staffing as it relieves them from having to perform the complex revenue loss calculation. And it is especially beneficial to the City of Campbell, which will receive just under the $10.0 million minimum revenue loss allowance.

Thus, this affords the City the greatest flexibility in broadly using its ARPA funds to provide government services. Previously, using the complex revenue loss formula, staff calculated the City’s pandemic related revenue loss at $8.2 million through the first reporting period of December 30, 2020; with an annual calculation previously required through December 2023.

Under this method, if the City’s pandemic related revenue loss never exceeded this amount, the City would have had to use the variance between its ARPA allocations and its calculated revenue loss on the other allowable uses shown above. The City may still chose to fully or partially use its ARPA allocations in these areas, but there is now no federal requirement to do so.

Consistent with a primary purpose of ARPA to achieve fiscal stability and resiliency and as allowed by the US Treasury , Council adopted Resolution 12767 on March 16, 2021 5 to balance General Fund operations up to $3.25 million in FY 2021 using the City’s ARPA allocations. However, after the final audit and as shown in its Annual Comprehensive Financial Report (ACFR), the City only needed $2.21 million of ARPA funds in FY 2021 to balance General Fund operations. This resulted in a remaining AR PA balance of $7.783 million as of the end of FY 2021.

Similar to its action in FY 2021, the City Council adopted Resolution 12801 on February 1, 2022
6 to balance General Fund operations up to $ 2.26 million in FY 2022 and to fund the expansion of Campbell Community Center WiFi for a cost of $125,000 using the City’s ARPA allocations; thereby leaving at estimated remaining ARPA balance of $5.397 million at the end of FY 2022. However, should the final audited FY 2022 General Fund operating deficit be less than $2.26 million, staff will return any excess monies back to the ARPA Fund (#221) so that they can be used for other allowable purposes. Conversely, should the final audited FY 2022 General Fund operating deficit exceed $2.26 million, staff will return to Council at a future date for increased authorization to use the ARPA Fund to balance FY 2022 General Fund operations.

5 City Council Meeting – Item #13 Mid-Year Fiscal Update (March 16, 2021) - https://www.campbellca.gov/AgendaCenter/ViewFile/Agenda/_03162021-2266 6 City Council Meeting – Item #11 Mid-Year Fiscal Update (February 1, 2022) - https://www.campbellca.gov/AgendaCenter/ViewFile/Agenda/_02012022-2450

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets)

Consistent with Council actions taken the last two fiscal years , staff is proposing that approximately $762,000 of the City’s remaining ARPA allocations be used to balance General Fund operations in FY 2023. The alternative to this proposed usage of AR PA funds to balance General Fund operations would be to ether draw upon other General Fund reserves, reduce expenditures, or increase revenues through new tax measures or other means. The proposed usage includes several other factors, assumptions, and requests relating to staffing, supplies, and services that will be discussed in more detail in subsequent sections of this transmittal letter. While staff is systematically working towards ensuring that ongoing revenue sources meet or exceed ongoing expenditures, staff believes that a measured, but decreased use of ARPA funds in FY 2023 (when compared to the last two fiscal years) to balance the General Fund until ongoing revenues catch up to ongoing expenditures is a fiscally prudent approach and consistent with a primary purpose of ARPA to achieve fiscal stability and resiliency. Furthermore, staff is also proposing that $50,000 be budgeted directly in the ARPA Fund (#221) to spend on ongoing COVID related expenses such as PPE, downtown barrier rentals, and related items. These expenses were previously budgeted in the General Fund budget unit 101.539 at $500,000 for FY 2021 and $125,000 for FY 2022. If approved, the two proposed uses a bove would leave the City with an estimated ARPA balance of $ 4.635 million by the end of FY 2023. While these uses are currently built into the proposed budget numbers and schedules before Council, staff requests further Council feedback regarding these items before budget adoption on June 21.

In addition to the proposed uses of ARPA funds detailed above, staff also requests Council feedback on using ARPA funds for two (2) one-time capital projects shown below .

While these are not currently built into the CIP numbers and schedules currently before Council, staff will include them before CIP adoption on June 21 if majority consensus is reached at the May 17 CIP introduction. Given ARPA guidelines, staff believes that these would be allowable uses of ARPA funds:

• Construction Funding for the Downtown Planned Development Area (PDA) Pedestrian and Bicycle Improvements Projects w/ OBAG Grant Match Up to $580,000 – Council discussed this item at the April 25 Budget Study Session and this item would provide local match funding for the construction phase of reconfiguring the Harrison Avenue /Civic Center Drive intersection and associated bike/pedestrian improvements at other intersections including Second Street/Civic Center Drive, Third Street/Civic Center Drive, and Central Avenue/Orchard City Drive. Design funds have already been secured through a One Bay Area Grant (OBAG) Cycle 2 and the City would need at minimum a 20% match to properly compete for OBAG Cycle 3 funds; estimated at a $580,000 match for a $2.9 million construction project . The call for projects for OBAG Cycle 3 is now open and the deadline to apply is July 2022.

• Civic Center Gravel Lot Paving and Pathways $500,000 – approval of Measure O in November 2018 authorized the City to issue up to $50 million in General Obligation Bonds to fund the renovation of the Library building and the construction of a new Public Safety facility. However, while this is a significant level of funding, it is also limited in its amount and allowable uses. The City Council has also identified several additional items outside the scope of Measure O, but within the Civic Center Complex.

The Civic Center Gravel Lot and Pathways capital project would be to develop the

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) gravel lot at Harrison Avenue and Grant Street into a paved employee and public parking lot with lighting and pathways, as appropriate, and relocated ingress/egress ; including the Installation of new Trash Enclosure to serve entire Civic Center Complex.

Given the escalation in the construction industry, funding may not be available through Measure O nor the $3.9 million State Grant received by the City in FY 2022 for Police Station FFE and other items. Both funding sources may be needed for primary building design and construction costs due to inflationary pressures on costs.

If approved, the two proposed projects above would leave the City with an estimated ARPA balance of $ 3.555 million by the end of FY 2023; after the operational uses previously summarized and to be discussed in more detail in subsequent sections of this transmittal letter.

C – STAFFING PLAN AND COSTING ASSUMPTIONS

Since the City of Campbell is a public agency providing services to the community, a large percentage of the City’s costs are personnel related. For example, in the FY 2022 General Fund Adopted Budget, 56.72% of all cost are related to personnel. This percentage would be even higher if fire services weren’t contracted. Thus, when developing the proposed budget, staff was very cognizant of presenting a staffing plan that not only met identified needs and objectives, but did so in a measured way that could be sustained long-term. As such, the FY 2023 Proposed General Fund budget before Council keeps the percentage of personnel costs similar at 55.55% of all General Fund costs. This number includes several factors, assumptions, and requests, which will be discussed in more detail below. Some are already included within the proposed budget numbers and schedules before Council. Others have not yet been included; pending further Council discussion and feedback:

Labor Negotiation
Labor agreements with most all bargaining groups expire on June 30, 2022 and the City will be commencing negotiations shortly. Nevertheless, so as to make sure any potential cost increases can be financially supported long-term, staff made certain salary and benefit assumptions in the budget materials and long-range forecast which are consistent with recent Council discussions regarding bargaining parameters. More details will be provided publicly once tentative agreements are r eached, but these costs increase have been factored into the proposed budget, long-range forecast, and schedules before Council.

Appropriate Staffing Model
Over the last two fiscal years and since the start of the pandemic, the City has taken a number of measures to control staffing costs such as eliminating temporary positions, layoffs of permanent staff, furloughs, vacancy freezes, and labor concessions. With an im proving economy though and rising service levels demands from a community that desires a return to many in person services and activities, this places a significant strain on existing staffing resources. Nevertheless, staff has sought to be strategic in developing its staffing model for FY 2023 and beyond. And as such, staff developed four (4) guiding priorities when considering any requests to unfreeze vacancies, restore temporary staffing, or add permanent personnel. These priorities are:

• Priority A – Succession Planning and Knowledge Transfer

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) • Priority B – Enhancing Communication Channels
• Priority C – Safety
• Priority D – Organizational Gap

Vacancies – In regard to vacancies, nine (9) vacant positions were frozen for part of the FY 2022 and five (5) more were frozen for all of the fiscal year. Of the latter group, three (3) were unfrozen during the FY 2022 Mid-Year update; leaving only Building Official in the Community Development Department and Parks Maintenance Supervisor in the Public Works Department as vacancy freezes. Please note that both positions are currently being filled by a Sr. Building Inspector and an Arborist in an acting role; respectively. However , for FY 2023, staff requests that these two (2) remaining positions be unfrozen . The unfreezing of Building Official, with an estimated annual cost of $221,000 in FY 2023, would address Priority A (Succession Planning and Knowledge Transfer) by ensuring that there continued to be sufficient growth opportunities and appropriate supervisorial structure within the Community Development Department. The unfreezing of this position would also address Priority C (Safety) by having a fully certified Building Official to oversee complex code and inspection issues citywide. Likewise, the unfreezing of Parks Maintenance Supervisor , with an es timated annual cost of $194,000 in FY 2023, would also address Priority A (Succession Planning and Knowledge Tran sfer) in the Public Works Department for the same reasons as the Community Development Department. Both costs and FTEs are currently included within the proposed budget and schedules before Council, but again require additional Council feedback.

In addition to unfreezing the two positions above, staff also requests downgrading a current vacant, but not frozen Recreation Supervisor at the Campbell Community Center (101.527) to a Recreation Program Coordinator and upgrading a current vacant, but not frozen Recreation Specialist in Sports, Aquatics, and Fitness (101.531) to a Recreation Program Coordinator. These modifications address Priority A (Succession Planning and Knowledge Transfer) by filling in a structural gap in the current organizational chart within Recreation and Community Services. The Recreation Program Coordinator will establish a clear path for professional growth opportunities for employees and provide adequate staff at all levels to prevent structural gaps in the future. However, since there is again an increasing demand for in-person services, classes, and activities, the restricting and hiring of these positions will allow to properly plan for the resumption of activities and staff them strategically and appropriately. Taken as a whole, the changes above in RCS would have a net cost of $6,000 in FY 2023. Both changes are currently included within the proposed budget and schedules before Council , but staff does request further Council feedback.

Temporary Staffing - As was previously mentioned, part of the City’s cost containment measures over the last two fiscal years and since the start of the pandemic has been to significantly reduce temporary staffing; mainly in RCS due to public health orders and decreased need for in person classes, programs, and activities. For example, in FY 2019, the last full year before the pandemic, actual temporary staffing costs across all City departments and funds equaled $2.1 million. However, this decreased to $1.4 million in FY 2020, with a quarter of the year impacted by the pandemic, and $586,000 in FY 2021.

However, with the return of many in person classes, programs, and activities, the budget

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) for temporary staffing was increased to $1.1 million in FY 2022; with much of its costs offset by program revenue. As such, in order to meet increased demand and Priority D (Organizational Gap ), staff requests that the temporary staffing budget be increased to $1.6 million in FY 2023. C osts will also largely be offset by program revenue and are currently included within the proposed budget and schedules before Council; both revenues and expenditures.

Permanent Staffing - When staff met with Council for the April 25 Budget Study Session, it presented a new position request list for permanent staffing. This list was meant to begin the discussion and request Council feedback regarding additional permanent staffing needs. Since that meeting, the Executive Team has worked to incorporate succession planning into the staffing model and has provided recommendations on how to appropriately adjust the staffing model to efficiently provide for service d emands. As part of the long term succession planning, staff has revised the presentation to focus more on the highest priority needs for this budget discussion. And a result, staff has significantly reduced and refined its requests down to four (4) positions for FY 2023; with a keen eye on Succession Planning Management and the guiding priorities listed above. The other positions presented on April 25 are still very important and will be needed over time, but staff again understands the need to be strategic in the growth of personnel so as to ensure that the staffing model not only supports key objectives, but is fiscally sustainable long- term. Thus, staff now requests Council feedback on the four (4) positions detailed below. Staff has performed a detailed, long-range analysis of General Fund expenditures and revenues and believes that these positions are sustainable and can be sufficiently supported by ongoing long-term City revenues, even after ARPA funds are exhaus ted.

Nevertheless, staff has not yet included their costs in the proposed budget numbers or schedules currently before Council. However, staff will add them to the June 21 budget adoption if majority consensus is reached:
• R
eclassification of one (1) Sr. Planner to one (1) Principal Planner (Community Development Department)
Projected Hiring Timeline: FY 2023 Q1
Net F
Y 2023 Cost $12,030
The
proposed reclassification would address Priority A (Succession Planning and Knowledge Transfer ) by providing a n appropriate and needed managerial layer between the Community Development Director . The Community Development Director currently has 9 direct reports not including contract staff members and this request would not only provide the Community Director wit h
addi
tional supervisory capacity, but would also add value to the City by providing career growth opportunities. And lastly, the requests also helps to meet the City Council priority of Comprehensive Long-Term Land Use Planning by being able to better retain high quality, experienced staff with a high level of institutional knowledge to achieve long-term planning efforts currently underway such as the General Plan Update, Housing Element Update, Specific Plans, etc. • N
ew Communications Coordinator (City Manager’s Office)
Projected Hiring Timeline FY 2023 Q2
Annual Cost $158, 283; FY 2023 Cost $118,712)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) T
his position is replacement of the Public Information Office (PIO) position that was discussed with Council during the April 25 Budget Study Session. PIO duties would be retained withing existing positions in the City Manager’s Office. This position would support those PIO efforts , address Priority B (Enhancing Communication Channels) and be responsible for citywide public communications, including, but not limited to developing and managing a citywide social media strategy (with incumbent having significant knowledge of social media algorithms), performing citywide webmaster duties, preparing regular citywide press releases, and working closely with executive leadership and Council to enhance and expand community outreach and engagement. This position could also help to enhance engagement and communication on high visibility and pressing workplan items such as the Climate Action Plan, the Below Market Rate (BMR) p rogram, Water Conversation efforts , a Gun Safety Public Awareness Campaign. For reference, the Cities of Cupertino, Saratoga, Mountain View, and Sunnyvale have standalone positions for these duties due to the significant effort and time it takes to perform them.
• C
ontractual Mental Health Counselor or Clinician (City Manager’s Office) Projected Contracting Timeline FY 2023 Q1
Annual Cost $60, 000)
T
his was formerly a permanent position request at the April 25 meet , but staff revised the request based on Council feedback at that meeting. Thus, the revised request would address Priority C (Safety) with a contractual service available to all City employees to enhance employee wellness citywide. A Certified First Responder Counselor would also be made available so as to meet the unique needs of public safety personnel; having an related benefit of providing better public safety services to the community. There are number of companies that provide these services and costs per session range from $115 to $295/hour; dependent upon certifications and type of contract (onsite, in-office, virtual). If approved, staff would explore a number of different models to ensure maximum benefit to City employees, but in all instances would seek to cap annual contractual costs at $60,000. Staff anticipates this being a one-year pilot program that would be analyzed and evaluated over the course of the year to see whether modifications were necessary long-term.
• N
ew Administrative Analyst I (Finance Department)
Projected Hiring Timeline FY 2023 Q2
Annual Cost $171, 155; FY 2023 Cost $128,366)
T
his position would address Priority D (Organizational Gap) since the Finance Department has an increasing need for analytical support given its complex and high-level fiduciary responsibilities . As such t his position w ould increase t he anal
ytical bandwidth of the Finance Department and assist on such projects as, but not limited to, Annual Budget, Annual Audit, Workplan Items, Long-Ran ge F
orecasting, Financial Analysis, System Implementations, Debt Issuances, and S
pecial Projects. This position would greatly increase analytical capacity and

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) further allow the Finance Director and the Finance Manager a more efficient use of time to focus on strategic issues, leadership, and long-range objectives within the department. Over the last few years, the Financ e Department has taken on several new projects such as implemen ting a new budget sys tem, providing monthly financial updates, supporting labor negotiations, issuing Meas ure O General Obligation Bonds, forming the Measure O Oversight Committee, etc. The department also expects to address high priority items such as pension liabilities, procurement enhancements, facilities condition assessment, and ERP evaluation and RFP development in the coming year. This pos ition would greatly help with each of those efforts. And lastly, if approved, the position could also help to meet Priority A (Succession Planning and Knowledge Transfer) by allowing an Administrative Analyst Fellowship Program to be created, consisting of four (4) unique programs in the City Manager’s Office, Community Development, Public Works, and Finance. Employees in these positions would then be able rotate through various functions of each discipline over a 12 to 24 month period; enhancing and expanding their knowledge to the benefit of not the employee, but also the whole City. Currently, the Administrative Analyst position only exists in the City Manager’s Office, Community Development, Public Works.

D - FINANCIAL SUMMARY
The proposed FY 2023 Operating and Capital expenditure appropriations across all City funds currently total $159.8 million; including $5.7 million in operating transfers outs, $30.0 million in transfers from the Measure O Bond Fund (#348) to the Measure O Capital Fund (#448) to account for the second is suance of Measure O bond proceeds, $4.8 million in c apital transfers out, $39.1 million in capital appropriations relating to Measure O funded capital projec ts for the Polic e Station and Library, and $1.6 million in scheduled debt service payments for Measure O bonds issued in August 2020 and an estimated $3 .0 million in debt service payments for Measure O bonds to be issued in June 2022. Related revenue sources total $117.4 million; including $5.7 million in operating transfers in, $30.0 million in transfers from the Measure O Bond Fund (#348) to the Measure O Capital Fund (#448) to account for the second issuance of Measure O bond proceeds, and $4.8 million in c apital transfers in. This results in an annual deficit of approximately $42.4 million across all City funds. However, this is largely due to spending down the first issuance of Measure O bond proceeds, which were entirely rec eived in FY 2021 and the full appropriation of the second issuance of Measure O bond proceeds, whic h are expected to be received in FY 2022. In summary, across all City funds, expenditures for FY 2023 show a 72.3% increase when compared to the FY 2022 Adopted Budget and a 31.1% increase when compared to FY 2022 Year-End Estimates. This is variance is again due almost entirely to the second Measure O issuance and the nec essary trans fer of bond proceeds between the debt service fund and the capital fund as well as the full appropriation of those capital funds. Additionally, across all City funds, revenues for FY 2023 show a 39.9% increase when compared to the FY 2022 Adopted Budget, but a 17.3% decrease when compared to FY 2022 Year -End Estimates. The large decrease in FY 2023 estimated revenues is due almost entirely to the last of two American Rescue Plan Act (ARPA) payments for approximately $4.99 million that will be received in FY 2022, but not in FY 2023 or thereafter.

Proposed FY 2023 Operating and Capital expenditure appropriations for the General Fund total $61.2 million; including $275,000 in capital transfers out to support new Capital Plan

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) Improvement Reserve (CIPR) funded projects, $1.4 million in capital transfers out to support carryover CIPR and Construction Tax pr ojects (offset by a drawdown of established capital reserve accounts), and $3.4 million in operating transfers out to support other City operational and debt service funds. General Fund operating transfers include those to the 2016 Lease Revenue Bond Debt Service Fund ($766 ,000), Vehicle & Equipment Replacement Fund ($81,000), Environmental Services Fund ($ 505,000), Lighting and Maintenance Fund ($874,000), Information Technology Fund ($169 ,000), and the Gas Tax Fund ($995,000).

Related General Fund revenue sources total $61.2 million; including $791,000 in operating transfers in from other funds to pay for indirect overhead costs and $712,000 from the ARPA fund to balance the General Fund, as previously discussed below. This results in estimated General Fund expenditures being fully balanced against estimated General Fund revenues in FY 2023. In summary, in the General Fund, expenditures for FY 2023 show a 11. 4% increase when compared to the FY 2022 Adopted Budget and a 5.3 % increase when compared to FY 2022 Year-End Estimates. Additionally, in the General Fund, revenues for FY 2023 show a 7.2% increase when compared to the FY 2022 Adopted Budget and a 5.3% increase when compared to FY 2022 Year-End Estimates.

Citywide and General Fund revenue estimates and proposed expenditures by type are shown in the Proposed FY 2023 Operating Budget document. The following will discuss key assumptions made in its development and significant items of note regarding certain revenue sources and expenditures. All numbers to be presented will reflect all Citywide funds as opposed to just the General Fund:

Top Ten (10) Citywide Revenue Sources
• Other Funding Sources (OFS) – Operating Transfers In is estimated to be the City’s largest revenue source in FY 2023, but this is largely to Measure O debt and capital fund transfers as discussed previously. In FY 2023, this category equals $41.9 million and is comprised of $4.8 million of capital transfers out from various restricted Special Revenue Funds to support actual capital project expenditures in the Capital Projects Fund (435), a $1.4 million draw down of established capital reserve accounts to fund carryover CIPR and Construction Tax projects, $30.0 million of capital transfers from the Measure O debt fund to the Measure O construction fund, and $ 5.7 million of interfund transfers out from various funds to provide support to operating activities in other funds or for various operating funds to pay the General Fund their fair share of overhead expenses. For FY 2023, OFS – Operating Transfers In shows a 259.7 % increase when compared to the FY 2022 Adopted Budget and a 66.5% increase when compared to FY 2022 Year-End Estimates.

• Property Tax would be the City’s largest revenue source in FY 2023 , absent the Measure O transfers explained above, and continues to be fueled by increasing housing prices and strong sales activity . In fact, as of calendar year 2022 Q1, the median home price in Campbell was $2.0 million; an increase of 12.83% from 2021 Q4. Additionally on May 6, 2022, the Santa Clara County Assessor’s Office provided an update on FY 2022 property tax collections to date and projected 6.3% assessed value growth for Campbell in FY 2023. This has been factored into the Proposed FY 2023 Operating Budget and is up from a 5.2% growth estimate provided by the Assessor’s Office on February 3, 2022.

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) • Sales and Use Tax is estimated to be the City’s third largest revenue source in FY 2023. While staff is conservative in its revenue estimates and only shows 2 % growth in FY 2023 and 3% beyond, it does note that there is good reason for optimism should current economic trends continue. However, staff also notes that supply chain disruptions, inflationary pressures, the war in Ukraine, and lingering pandemic effects provide headwinds to consumer and business spending and further economic growth.

• Other Taxes is estimated to be the City’s fourth largest revenue source in FY 2023.

In FY 2023, this category equals $8.4 million and is comprised of $3.0 million of Transient Occupancy Tax (TOT), $3.9 million of Franchise Taxes, $695,000 of Business License Tax, $71,000 of Construction Tax, and $788,000 Real Property Tax Transfers. In regard to TOT, in FY 2019, the last normal year before the COVID -19 pandemic, City TOT revenue equaled $4.8 million. While many economists forecast a strong rebound for hotels by calendar year 2023 (due to pent up demand for personal travel) staff is much more conservative and feels that there is great uncertainty surrounding Campbell hotels since they appear to be used more for business travel.

At this time, it is unknown how quickly that business travel will rebound and whether it will fully rebound to pre-pandemic levels due to increased utility and cost effectiveness of virtual meetings. Thus, staff forecasts a slow return to normal and TOT revenues of $3.0 million in FY 2023, which is 25.0% higher than FY 2022 Year -End Estimates and 50.0% higher than the original FY 2022 Adopted Budget. Please note that these estimates do not include any new hotels which may be constructed in the future, potential increases to TOT rates, or the collection of TOT from short-term rentals. Any of those factors could positively impact TOT revenue estimates. Conversely, hotel closures could also negatively impact TOT revenue. However, remaining hotels might also pick up the travelers that would hav e otherwise stayed at a shuttered hotel. At this time, staff recommends caution when forecasting TOT revenue, but feels that it’s forecast for FY 2023 is reasonable and based on sound assumptions and data. And as the updated “Long -Range Financial Forecast ” as presented in a subsequent section of this book shows, staff predicts TOT revenues not returning to pre-pandemic levels until at least FY 2026.

In regard to Franchise Taxes, this is to account for franchise taxes paid by electric, gas, solid waste, recycling, and cable television utilities that are authorized to operate within Campbell. In FY 2023, this category equals $3.9 million and shows a 1.00% decrease when compared to the FY 2022 Adopted Budget, but a 3.0% increase when compared to 2022 Year -End Estimates. With economic activity picking up, more businesses returning to in person work, and public health restrictions easing, staff expects most all utilities to be used more and return to a more normal usage pattern and growth trajectory. Inflationary factors may also force some utilities to raise rates, which in turn would lead to higher franchise taxes received by the City.

In total, Other Taxes is FY 2023 is 16.8% higher when compared to the FY 2022 Adopted Budget and 10.3% higher when compared to FY 2022 Year-End Estimates.

• Intergovernmental Revenue is estimated to be the City’s fifth largest revenue source in FY 2023. In FY 202 3, this category equals $6.5 million and is comprised of $1.8 million in Successor Agency Redevelopment Property Tax Trust Fund (RPTTF)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) payments, $469,000 from the Santa Clara County Fire D epartment to reimburse the City for arson investigation services and training, and $4.7 million in grant and other state and federal funding to support various operational programs and capital projects.

Intergovernmental Revenue for FY 2023 shows a 45.0% decrease when compared to the FY 2022 Adopted Budget and a 63.9% decrease when compared to FY 2022 Year- End Estimates; largely due to final receipt of ARPA monies in FY 2022.

• Charges for Service is estimated to be the City’s sixth largest revenue source in FY 2023. As a whole in Charges for Service in FY 2023 , staff is estimating a 33.1% increase when compared to the FY 2022 Adopted Budget and a 11.9% increase when compared to FY 202 2 Year-End Estimates. While FY 2023 revenue is estimated at $6.3 million, it will still be slightly below pre-recessionary levels of approximately $6.7 million in FY 2019 as staff expects R ecreation services and programs at due full capacity through FY 2023 due greatly decreased pandemic effects and high demand from patrons to return to in person activities.

• License & Permits are estimated to be the City's seventh largest revenue source in FY 2023. Staff is expecting continued strong growth in this area for FY 2023; largely due to development activity. As such, License & Permits are expected to grow 42.2% in FY 2022 when compared to the FY 2022 Adopted Budget and 17.3% when compared to 2023 Year-End Estimates. Should significant new developments be built within Campbell which are not currently known, Licenses and Permits and Other Taxes could increase at a higher rate than what is shown for FY 2023.

• Charges to Op erating Departments is estimated to be the City’s eighth largest revenue source in FY 2023 . Please note though that these are internal service charges from the Information Technology (IT) Division and the Vehicle Maintenance Division to provide services to other operating departments. This category also includes Workers Compensation premium expenses charged to all departments to support the City’s self -fund Workers Compensation insurance program. Thus, these are not external revenue sources. In FY 2023, it is estimated that these charges will equal $3.1 million; comprised of $1.2 million of IT charges, $1.3 million of Vehicle Maintenance charges, and $605,000 in Workers Compensation charges. As a whole in Charges to Operating Departments in FY 2023, staff is proposing no change in internal service charges when compared to both the FY 2022 Adopted Budget and FY 2022 Year-End Estimates.

• Leases and Rentals are estimated to be the City's ninth largest revenue source in FY 2023; equaling $2.9 million. This category includes both long-term lease revenue for the Campbell Community Center as well as rental revenue for events and use of City facilities. When FY 2023 is compared to the FY 2022 Adopted Budget, a 38.36% increase is shown. Additionally, when compared to FY 2023 Year-End Estimates, Leases and Rentals are expected to increase by 14.7%; reflecting relative strength in long-term lease revenue as well as a continued return to normal for rental revenue for events and use of City facilities.

• Miscellaneous Revenue is estimated to be the City’s tenth largest revenue source in FY 2023 ; equaling $2.3 million. For FY 202 3, this is a category shows a 40.5%

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) increase when compared to the FY 2022 Adopted Budget, but a 62.5% decrease when compared to FY 2022 Year-End Estimates. This is due to a $3.9 mill ion State Grant for Police Station FFE being received one-time in FY 2022, but not in FY 2023.

Expenditures
The following will describe and detail operating expenditures only. Capital expenditures will be described and detailed in the Capital Improvement Plan (CIP) section of this book:

• Employee Services – As a whole across all funds in FY 2023 , Employee Services costs are expected to in crease by 8.0% when compared to the FY 2022 Adopted Budget and increase by 6.0% when compared to 2022 Year-End Estimates. These numbers include the staffing assumptions discussed previously.

• Supplies & Services - As a whole across all funds, Supplies & Services expenses are proposed to increase by 18.0% in FY 2023 when compared to the FY 2022 Adopted Budget, but decrease by 10.6% when compared to FY 2022 Year-End Estimates. For General Fund supply and services requests over $10,000, these will be shown in more detail in Exhibit B of this transmittal letter.

E - ECONOMIC UPDATE AND OUTLOOK

Although U.S. consumer prices rose less than expected in March, inflation remained elevated at a 40-year high. The nationwide Consumer Price Index (CPI) was up 8.5% year-over-year in March, versus up 7.9% year -over-year in February. Core CPI (CPI less food and energy) was up 6.5% year-over-year in March, versus up 6.4% year-over-year in February. Gasoline costs drove about half of the monthly increase, while the food was also a sizable contributor.

Used vehicle prices declined (although remaining firm), resulting in lower than forecast core increases for the month. Current inflation readings continue to run well above the Fed’s longer-run target of around 2.0%. While gas prices have started to decline in recent weeks in part due to COVID lockdowns in China, staff believes pricing pressures may remain elevated longer than anticipated as a result of the conflict in Europe. Retail sales edged higher in March, but there are signs that higher gas prices are impacting discretionary spending. On a year-over-year basis, retail sales were up 6.9% in March versus up 18.2% in February. On a month-over-month basis, retail sales moderated, rising 0.5% in March versus an upwardly revised increase of 0.8% in February. Excluding vehicles and gas, retail sales were up just

0.2% month-over-month. Gains in March were driven primarily by gasoline purchases, while e-commerce and vehicle sales declined. The University of Michigan released their consumer sentiment index for the month of April; the index unexpectedly jumped to 65.7 from a reading of 59.4 in March, the lowest since 2011. For the coming year, consumers expect an inflation rate of 5.4%, unchanged from last month’s reading.

In the U.S. and globally, Covid trend data continues to improve but China’s lockdowns and pursuit of a zero Covid policy have resulted in significant congestion and supply chain backlogs around Shanghai, the home of the largest port in the world. This situation along with the war in Ukraine is adding significant stress to already strained global supply chains.

Primarily due to the Russia-Ukraine war, the International Monetary Fund (IMF) reduced their global growth forecast for 2022 to 3.6% GDP, representing a 0.8% reduction from its forecast released in January. The Leading Economic Indicators Index (LEI) was up 0.3% in March as

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Additionally, US GDP unexpectedly declined at an annualized rate of 1.4% in the first quarter of calendar year 2022, coming off an exceptionally high growth rate of 6.9% in Q4 2021.

However, the economy contracted mostly due to a significant increase in the trade deficit, with more imports than exports as domestic consumer demand remained strong, while lockdowns in China and the war in Ukraine took a toll on global demand for US products.

Consumer confidence also came down slightly in April 2022 to 107.3 versus 107.6 in March as higher gas prices and inflation worries continued to weigh on overall sentiment, while the strong labor market kept the metric well above its long-run average of around 95. The University of. Personal spending jumped by 1.1% in March, largely driven by an increase in spending on pent-up demand for services such as international travel, restaurants and hotels.

The Personal Consumption Index (PCE) increased to 6.6% in March from 6.3% in the prior month while Core PCE, which excludes food and energy, eased to 5.2% in March from 5.3% in February. While the report was largely in-line with expectations, Core PCE has been running significantly higher than the Fed’s 2.00% long-run target. The S&P Corelogic Case Shiller 20-City Index also showed an impressive 20.2% year -over-year jump in real estate prices in February. The cities with the largest gains were Phoenix, Tampa, Miami, and San Diego with growth rates of 32.9%, 32.6%, 29.7% and 29.1%, respectively. Tight supply and higher mortgage rates are contributing to affordability issues for many prospective buyers and that also holds true in the San Francisco Bay Area.

In regard to housing, March's housing starts rose 0.3% nationwide to a 1.793 million annual rate, exceeding survey expectations of 1.74 million. Housing starts were up 3.9% from a year ago. Existing home sales nationwide declined 2.7% in March to an annualized rate of 5.77 million units. The pace of sales is 4.5% below the 6.04 million units sold in March 2021. The significant increase in mortgage interest rates along with low inventories are resulting in slower sales activity. Although sales are slowing, it doesn’t mean upward pressure on housing prices has abated. The median price of an existing home rose 4.5 percent month-over-month in March to $375,300, a record high and up 15.0% compared to one year ago. And in Campbell, the 2022 Q1 median home price again rose to $2.0 million; an increase of 12.83% from 2021 Q4. The data released by the National Association of Realtors noted that sales were down in the lower price ranges, suggesting first -time buyers are having trouble finding affordable entry-level housing as well as qualifying for a mortgage while sales for higher priced homes remained strong.

The labor market remains strong and added 428,000 nationwide in April. The unemployment rate was unchanged at 3.6% and average hourly earnings rose 5.5% year-over-year in April, slightly lower than the 5.6% reading in March. Job growth was widespread, led by gains in leisure and hospitality, manufacturing, and transportation and warehousing. April followed a strong March in which the U.S. economy added 431,000 jobs, with upward revisions from the prior months totaling 95,000. Trends in employment remain str ong, with the three-month moving average payrolls at 561,000 and the six -month moving average at 600,000. The U- 6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, fell t o 6.9% in March from 7.2% in February, declining below its pre-pandemic level of 7.0% in February 2020.

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In California, total nonfarm employment in the state increased by 60,200 jobs over the month of March 2022. Additionally, statewide unemployment decreased to a rate of 4.9% in March 2022; down from 5.3% in February 2022 and 8.4% in March 2021. In Santa Clara County, the rate decreased to 2.5 % in March 2022; down from 2.9% in February 2022 and 5.7% in March 2021. And in Campbell, the rate decreased to 2. 3% in March 2022; down from 2. 5% in February 2022 and 5.3% in March 2021. At its pandemic high point in April 2020, the Campbell unemployment rate had reached 11.7%. While the current Campbell unemployment rate is not at the ten-year low of 2.0% seen in May 2019, there has still been considerable improvement since the start of the pandemic.

F - LONG-RANGE FORECAST (TO BE UPDATED AT END ONCE ALL NUMBERS FINAL) On April 25 , 202 5, staff provided City Council with the First Update of the Seven-Year Financial Forecast that projected balanced General Fund operations in FY 2023, with $1.22 million of ARPA fund usage. Due to recently released property tax estimates from the County Assessor’s Office as well as less of a need to make transfers from the General Fund to other funds, proposed ARPA usage for balancing purposes has been reduced to approximately $712,000 in FY 2023. In addition, due to the property tax and transfers out revision mentioned previously, out year surpluses increase by $500,000 to $600,000 per year starting in FY 2024.

The Second Update of the Seven-Year Financial Forecast is shown and discussed in more detail in a separate section of this book called “Long-Range Financial Forecast”.

G - POTENTIAL REVENUE MEASURES

At the March 1, 2022 Council Meeting
7, staff presented to Council sev eral options for new
Revenue Measures that it may wish to place on the November 2020 so as to provide the City with additional stable revenue sources and ensure long-term fiscal sustainability in response to rising pension, healthcare, and staffing costs, the need to pay down unfunded liabilities, inflationary pressures, increased service level demands, capital infrastructure and deferred maintenance needs, any possible Council desire to create new Reserve accounts for specific purposes, the limited nature of American Rescue Plan Act (ARPA) funding, and the slow and protracted recovery of the hospitality industry and Transient Occupancy Tax (TOT) revenue. Following discussions, Councilmembers confirmed consensus for further research and information relating to increasing the TOT and short-term rental programs. Thus, staff will bring this research back to Council at the June 21 meeting. If a TOT rate adjustment were approved at that time to move forward, ballot language and all other necessary legal materials would need to be developed and approved no later than the July 2022. This may or may not be feasible given existing staff capacity and resources, but more analysis will be performed. However, even if a TOT ballot measure is not feasible for November 2022, staff could still pursue short term rental regulations with the current TOT rate.

As a reminder, the current City TOT rate is 12.00%. And many cities in the region have gone to

14.00%. Hotels continue to struggle, but are starting to recover and TOT is not normally a factor that guests consider when selecting a hotel. Once hotels have fully recovered, the City’s 12.00% TOT rate should earn approximately $4.8 million annually. A 2.00% rate increase is estimated to generate an additional $800,000 to $1.0 million annually once the hospitality industry is fully

7 City Council Meeting – Item #10 Discuss New Revenue Sources (March 1, 2022) - https://www.campbellca.gov/AgendaCenter/ViewFile/Agenda/_03012022-2467

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Additionally, as a reminder in regard to Short-Term Rentals, Cities such as Sunnyvale have taken a number of steps in this area and pre-pandemic earned approximately $585,000 annually. In FY 2021, due to the pandemic, this decreased to approximately $250,000. Thus, for a city of Campbell’s size, staff estimates between $125,000 and $250,000 annually could be received from short-term rental enforcement. The City could also enter into a Voluntary Collection Agreements (VCA) with short-term rental platforms such as Airbnb and VRBO and work with Host Compliance companies for the smaller individual rental providers. COUNCIL ACTION ONLY required for VCAs and possible approval of agreements with Host Compliance companies; dependent on cost of agreements. The City’s Municipal Code would also first need to be modified to allow short-term rentals to operate within Campbell.

H - FEDERAL AND STATE AID
As previously noted, the City is expected to receive $9.997 million total in one-time American Rescue Plan Act (ARPA) funding; with the first payment of $4.999 million received in FY 2021 and the second payment of $4.999 million expected to be received in FY 2022. These monies must again be committed (appropriated and encumbered) by December 31, 2024 and spent down fully by December 31, 2026.

In addition to ARPA, staff has recently submitted a Federal Emergency Management Agency (FEMA) reimbursement request in which it may receive between $250,000 and $1.0 million for COVID related staffing, supplies, and services expenses that it incurred during the pandemic. The FEMA request is currently in its initial stages and the timing and final amount of reimbursement is uncertain, but staff will continue to monitor the request and follow up with FEMA regarding any additional materials or documentation required. Staff cautions though that FEMA reimbursements are typically a very slow process and the City may not see reimbursement for several years in the future.

And lastly, staff is also pursuing all opportunities that it can to secure grant funding to enhance the library renovation and new police building capital projects on top of funds being provided by Measure O. For instance, the City may be eligible for a State library grant up to $5 million.

Staff will report back to Council at a later date once more information is available on this grant opportunity.

I - BUDGET AND FINANCIAL AWARDS
For the 29th consecutive year, the City's FY 2022 budget received national recognition by earning the Government Finance Officers Association (GFOA) “Distinguished Budget Award.” To receive the Distinguished Budget Presentation Award, a city must publish a budget document that serves as a policy document, a financial plan, a communications device, and an operations guide. We believe the FY 2023 budget conforms to GFOA program requirements. Additionally, FY 2022 is the 24
th year an award of “Excellence in Budgeting” has been received from the California Society of Municipal Finance Officers (CSMFO). Copies of both awards appear in the “Budget Reference Materials” section of this document. It also should be noted that the City’s Annual Financial Report has also been an award-winning document for excellence in financial reporting at both the State and national levels for many years.

J - NEXT STEPS

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) • May 17: Introduction of Operating Budget and CIP
• July 21: Adoption of Operating Budget, CIP, and Gann Limit

K - CONCLUSION AND ACKNOWLEDGEMENTS
The development of the Proposed Fiscal Year (FY) 2023 Operating Budget and 2023 - 2027 Five- Year Capital Improvement Plan (CIP) was made possible through the knowledge and contribution of the City’s employees, input and support from our community, and direction of the City Council.

Despite the economic slowdown caused by the pandemic, the City has done well to preserve core services the past two years and is starting to again benefit from a recovering economy. While we continue to remain cautious, conservative, and strategic in our operational growth, we also look forward to brighter days on the horizon and return to normal once again.

I wish to thank everyone who participated in the budget process this year including the City Council and members of the Executive Team. Finally, I would like to recognize the staff within the Finance Department for their dedication and hard work that went into coordinating, developing, and publishing this budget document.

Respectfully submitted,

Brian Loventhal
City Manager

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) Exhibit A
Proposed FY 2023 Workplans
Legend:
• Comprehensive Long-Term Land Use Planning
• Measure O Implementation
• Financial Stability
• Sustainability
• Operational Need or CIP Support
City Manager’s Office
101.510 (CM Administration)
• Provide overall coordination of Measure O police and library design process [Council Priority - Measure O Implementation]
• Coordinate tracking of State Legislation (that may impact City) with Legislative Subcommittee [Council Priority – Comprehensive Long-Term Land Use Planning]
• Provide guidance and support for the General Plan Housing Element revision process [Council Priority – Comprehensive Long-Term Land Use Planning] • Provide guidance and support for labor negotiations [ Council Priority – Financial Stability and Operational Need]
• Evaluate the provision of Economic Development services and consider alternatives [Council Priority – Financial Stability]
• Staff the Civic Improvement Commission [Operational Need] • Coordinate, plan and staff the State of the City event. [Operational Need] • Update Cannabis Ordinances to reflect changes in State statutes in coordination with Legal Services and Police Departments. [Operational Need] • Develop and implement a Citywide Social Media Strategy. [Operational Need]

101.515 (Human Resources)
• Collaborate with the Finance Department and Information Technology (IT) Division as well as other key stakeholders to prepare a Finance and HR system Needs Assessment, Request for Proposal (RFP), and Vendor Selection Process; using consulting services to assist in the process as necessary. LEAD DEPARTMENT - IT [Council Priority – Financial Stability]
• Develop plan to fill key leadership and vacant positions with a strategic approach [Operational Need]
• Work with Liebert Cassidy Whitmore on successor labor contract negotiations with CPCEA, CMEA, and CARP. Meet and confer with CPOA. [Council Priority – Financial Stability and Operational Need]

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) 647.547 (Information Technology)
• Collaborate with the Finance Department and Human Resources (HR) Division as well as other key stakeholders to prepare a Finance and HR system Needs Assessment, Request for Proposal (RFP), and Vendor Selection Process; using consulting services to assist in the process as necessary. LEAD DEPARTMENT - IT [Council Priority – Financial Stability]
• Deploy new Finance and HR systems if vendors selected in Fiscal Year [Operational Need]
• Purchase and deploy replacement of Storage Area Network (SAN) [Operational Need]
• Purchase and deploy replacement Network Firewall system [Operational Need] • Extend publicly accessible Wi-Fi at Community Center [Operational Need] • Replace 25% of antiquated desktop computers [Operational Need] • Assist with purchase and deployment of new PRA automation [Operational Need] • Continue public meeting recording and management [Operational Need] • Replace public meeting video and recording systems [Operational Need] • PD - Upgrades related to DOJ mandates (NIBRS) [Operational Need] • Provide IT consultation regarding Measure O projects [Council Priority - Measure O Implementation]
• Assist in the deployment of a new CAD/RMS system in PD [Operational Need] 101.556 (Economic Development)
• Implement short-term economic development strategy to minimize sales tax leakage and fill commercial vacancies. [Council Priority – Financial Stability] • Implement Permanent Parklet program for Downtown businesses. [Council Priority –Financial Stability]
• Begin work on update to the City’s Economic Development Plan. [Council Priority – Financial Stability]
448.518 (Measure O)
• Plan, coordinate, and complete design options for both Police and Library buildings. [Council Priority - Measure O Implementation]
• Work jointly with the Finance, Public Works, and Police Departments to confirm Furniture, Fixture, and Equipment (FFE) needs for new the Public Safety building and sufficiency of State grant funding. LEAD DEPARTMENT – Public Works [Council Priority - Measure O Implementation]
• Complete Pre-qualification process prior to bidding Measure O projects. [Council Priority - Measure O Implementation]
• Conduct Public Bid process to construct both the Library and Police Building projects. [Council Priority - Measure O Implementation] • Begin the construction of both the Library and Police Building projects. [Council Priority - Measure O Implementation]
• Provide support to the Citizens’ Oversight Committee. [Council Priority - Measure O Implementation]
City Clerk’s Office

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) 101.511 (City Clerk)
• Work with IT to implement automated public records request system [Operational Need]
• Review, coordinate, and implement a revised records retention schedule and procedures with potential software updates to the Laserfiche system [Operational Need]
• Conduct a successful 2022 General Election [Operational Need] • Review current processes, develop, and implement an overall board & commission program including, software needs, recruitment efforts, orientation programs/training materials/manuals, and recommended policy updates [Operational Need] Recreation & Community Services
101.524 (Recreation & Community Services Administration) • Collaborate with the Public Works and Finance Departments to prepare a facilities condition assessment and identify Citywide deferred maintenance issues to address in future Capital Improvement Plans (CIP); using consulting services to assist in the assessment as necessary. LEAD DEPARTMENT – Public Works [Council Priority – Financial Stability]
• Renew Age-Friendly Cities designation with World Health Organization (WHO). [Operational Need]
• Update Downtown Special Event Policy to incorporate Community Events outside of Downtown area. [Council Priority – Financial Stability] Finance
101.535 (Accounting Services)
• Develop strategies to systematically address Unfunded Pension Liabilities in the short- and long-term. [Council Priority – Financial Stability] • In coordination with the City’s Financing Team, finalize any items necessary to issue the second series of Measure O Bonds for $30 million. [Council Priority - Measure O Implementation]
• Work jointly with the City Manager’s, Public Works, and Police Departments to confirm Furniture, Fixture, and Equipment (FFE) needs for new the Public Safety building and sufficiency of State grant funding. LEAD DEPARTMENT – Public Works [Council Priority - Measure O Implementation]
• Collaborate with the Public Works and Recreation and Community Services Departments to prepare a facilities condition assessment and identify Citywide deferred maintenance issues to address in future Capital Improvement Plans (CIP); using consulting services to assist in the assessment as necessary. LEAD DEPARTMENT – Public Works [Council Priority – Financial Stability] • Collaborate with the Human Resources and Information Technology Divisions as well as other key stakeholders to prepare a Finance and HR system Needs Assessment, Request for Proposal (RFP), and Vendor Selection Process; using consulting services to assist in the process as necessary. LEAD DEPARTMENT - IT [Council Priority – Financial Stability]

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) • In coordination with an outside consultant, update the City’s User Fee Study to ensure continued cost recovery where desirable. Study will be used as the basis for User Fees starting in FY 2024. [Council Priority – Financial Stability] • In coordination with an outside consultant, fully assess the City’s policies, procedures, and systems, offer recommendations for revisions where necessary to bring into alignment with best practice, state and federal guidelines, and other related City policies, and perform a needs assessment to determine the appropriate staffing resources and structure to have an efficient and effective City purchasing function. [Council Priority – Financial Stability]
Community Development
101.550 (Administration)
• Upgrade permit tracking system to create greater efficiencies and increase performance in permit processing. [Operational Need]

101.551 (Current Planning)
• Complete upgrades to Code Enforcement program implementing new enforcement tools and funding mechanisms. [Operational Need]

101.552 (Policy Development)
• Complete update to General Plan and Housing Element. [Council Priority - Comprehensive Long-Term Land Use Planning]
• Complete update to Zoning Ordinance implementing objective residential development standards, zoning standards for updated general plan and housing element, and conformance with state laws. [Council Priority - Comprehensive Long-Term Land Use Planning]
• Begin work on Climate Action Plan (Spring 2023) [Council Priority – Sustainability]

101.554 [Building]
• Update Building Code to incorporate new state provisions regarding Electric Vehicle Charging and Photovoltaic Systems. [Operational Need]

223.557 (Housing Assistance)
• Implement short term improvement plan to Housing Program. [Operational Need] Identify broader BMR Housing program upgrades needed in association with Housing Element implementation. [Operational Need]
Legal Services
101.560 (Legal Services)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) • Assist Community Development with General Plan and Housing Element Update [Council Priority - Comprehensive Long-Term Land Use Planning] • Work with Community Development Department to revise zoning ordinances to comply with State law and implement General Plan update, as well as potentially incorporating objective standards, expansion of safe camping, amnesty for ADUs, update of wireless facility processing and legalization of short-term rentals [Council Priority - Comprehensive Long-Term Land Use Planning]
• Review update to Building Code to incorporate new state provisions regarding Electric Vehicle Charging and Photovoltaic Systems. [Operational Need] • Review Measure O construction contracts and assist in implementation [Council Priority - Measure O Implementation]
• Assist with implementation of new PRA automation [Operational] • Assist Clerk’s Office with revision to records retention schedule and procedures [Operational Need]
• Review proposed update to Downtown Special Event Policy to incorporate Community Events outside of Downtown area. [Council Priority – Financial Stability] • Assist in implementation of Permanent Parklet program for Downtown businesses. [Council Priority – Financial Stability]
• Complete wireless regulations for use of right -of-way in coordination with the Public Works Department [Council Priority – Financial Stability] • Update Cannabis Ordinances to reflect changes in State statutes in coordination with City Manager’s Office and Police Department. [Operational Need]

Public Safety
101.601 (Police Administration)
• Support and provide feedback regarding the design of new Police Station funded by Measure O bonds. [Council Priority - Measure O Implementation] • Work jointly with the City Manager’s, Public Works, and Finance Departments to confirm Furniture, Fixture, and Equipment (FFE) needs for new the Public Safety building and sufficiency of State grant funding. LEAD DEPARTMENT – Public Works [Council Priority - Measure O Implementation]
• Update Cannabis Ordinances to reflect changes in State statutes in coordination with the City Manager’s Office and Legal Services Department. [Operational Need] • Recruit qualified candidates for vacancies and upcoming retirements. [Operational Need]
• Form a technology plan for upcoming implementation of new systems [Operational Need]
• Increase public engagement and transparency through a variety of methods including the formation of a Public Safety Advisory Board and Campbell’s first Citizen’s Police Academy. [Operational Need]
• Develop and implement a Gun Safety Public Awareness Campaign. [Operational Need]

Public Works

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) 101.701 (Public Works Administration)
• Manage and implement Measure O design process and subsequent related work; complete design of Library and Police building projects and initiate public bid process. [Council Priority - Measure O Implementation]
• Work jointly with the City Manager’s, Finance, and Police Departments to confirm Furniture, Fixture, and Equipment (FFE) needs for new the Public Safety building and sufficiency of State grant funding. LEAD DEPARTMENT – Public Works [Council Priority - Measure O Implementation]
• Represent Campbell in long range regional transportation planning efforts - Envision Silicon Valley and Plan Bay Area 2050 process. [Council Priority - Comprehensive Long-Term Land Use Planning]
• Complete wireless regulations for use of right -of-way in coordination with the Legal Services Department [Council Priority – Financial Stability] 209.715 (Environmental)
• Coordinate and support efforts to implement the requirements of SB 1383. [Council Priority – Sustainability]
• Complete RFP and installation of water bottle refill stations in City Hall and City parks. [Council Priority – Sustainability]
• Coordinate and support the RFP process for the new solid waste franchise agreement. [Council Priority – Sustainability]
• Provide support to the West Valley Clean Water Authority when implementing the regional stormwater MRP 3.0. [Council Priority – Sustainability] • Assess, recommend, and implement means by which the City can enhance its Water Conservation Efforts. [Council Priority – Sustainability]

101.720 (Transportation Engineering)
• Review and consider revisions to the City’s Traffic Calming Policy. [CIP Support] • Manage, design, and Implement traffic calming improvements. [CIP Support] • Apply for and manage grant funds as provided through VTA and other granting agencies. [Council Priority – Financial Stability]
• Manage the construction of the Citywide ITS Enhancements Project. [CIP Support] • Manage, design, and Implement bicycle and pedestrian enhancements and safety improvements [CIP Support]
• Support Community Development in the Envision Campbell General Plan and Housing Element Update effort. [Council Priority - Comprehensive Long-Term Land Use Planning]

101.730 (Engineering)
• Implement the Annual Street Maintenance Program. [CIP Support] • Complete construction of the Campbell Park improvements. [CIP Support]

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) • Complete construction of the Harriet Avenue Sidewalk project. [CIP Support] • Manage and implement all other approved Capital Improvement Projects. [CIP Support]
• Complete Standard Plans, Specifications, and Details for Public Works Construction. [Operational Need]
• Review applications and issue permits for small-cell wireless projects. [Operational Need]
• Maintain streetlight inventory and assist with street lighting needs for projects. [CIP Support]

101.740 (Land Development Engineering)
• Review development proposals for compliance with the reissued Storm Water Municipal Regional Permit (MRP 3.0), including necessary updates to the Green Infrastructure Plan. [Council Priority - Comprehensive Long-Term Land Use Planning]
• Review and approve land development projects for compliance with City policies, adopted plans, and City standard plans and details, and identify associated improvements on public rights-of-way. [Council Priority - Comprehensive Long- Term Land Use Planning]

101.745 (PW Maintenance Administration)
• Support volunteer events such as Keep America Beautiful and Campbell Garage Sale. [Operational Need]

641.750 (Vehicle & Equipment Maintenance)
• Complete all approved vehicle and equipment purchases and lease acquisitions. [Operational Need]
• Complete replacement of three diesel-powered heavy-duty trucks with gasoline powered vehicles to meet EPA Tier 4 motor requirements. [Operational Need]

204.760 (Street Maintenance)
• Complete Maintenance Zones 13 &14 removal and replacement of City-owned displaced sidewalks, curb and gutter. [Operational Need] • Complete all approved Capital Improvement Projects, including the John D Morgan Parking Lot Renovation, Retro Reflectivity Sign Replacement, and all City facilities. [CIP Support]

207.770 (Signals & Lighting Maintenance)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) • Complete installation of new Traffic Signal Cabinet at intersection of Bascom Ave and Apricot Ave. [Operational Need]
• Complete installation of an advance grid smart camera for the intersection of Creekside Dr. and Northbound (NB) Hwy 17 offramp. [Operational Need]

207.775 (Park Maintenance)
• Complete Maintenance Zones 13 &14 structural tree trimming. [Operational Need] • Implement water conservation strategies including turf and irrigation controller upgrades for the Community Center and sports fields. [Council Priority – Financial Stability]

101.780 (Building Maintenance)
• Complete the installation of a new Edwards Fire Alarm Panel and 4 sub-panels at the Campbell Community Center. [CIP Support]
• Complete first year of scheduled re-roofing projects at the Campbell Community Center Buildings. [CIP Support]
• Collaborate with the Finance and Recreation and Community Services Departments to prepare a facilities condition assessment and identify Citywide deferred maintenance issues to address in future Capital Improvement Plans (CIP); using consulting services to assist in the assessment as necessary. LEAD DEPARTMENT – Public Works [Council Priority – Financial Stability] • Complete the acquisition and installation of a new Traffic Signal and Lighting Modular Building at the Service Center. [CIP Support]

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) Exhibit B
Significant New and Increased General Fund Supplies and Services

• City Manager’s Office

NEW COST
o +$35,000 – New HR Software for Recruitment, Onboarding, Training, etc. o +$150,000 - Economic Development Plan Consultant
o +$50,000 - Short Term Economic Dev Strategy

INCREASED COST
o +$17,200 – Resumption of in-person Employee Engagement Events o +$30,000 – Increased Job Announcement Postings
o +$50,000 – Increased Labor Relations Legal Fees

• City Clerk

NEW COST
o +$16,000 – Records, Disclosure, and CPRA Systems

INCREASED COST
o +$45,000 – Election Expenses

• Recreation & Community Services

NEW COST
o +$12,000 – Purchase of New Chairs and Tables for M-50 Rental Space

INCREASED COST
o +$17,000 – Production of Activity Guide by Outside Contractors o +$44,000 – Resumption of Trips and Special Events in Adult Services o +$32,800 – Contractual Security and Janitorial needs for CCC Rentals o +$47,500 – Marketing for a full-season of Theatre shows o +$34,000 – Increased costs to rent Theatre Equipment
o +$356,500 – Increased Contractual Theatre Management and Event costs (post-pandemic); offset by ticket sale and other theatre revenue o +$24,000 – Increased Cleaning, Custodial, and Security Services at Theatre o +$212,500 – Increased demand for Contractual Sports Camp Instructors; offset by program fees
o +$24,300 – Resumption of Two (2) Fun Runs; offset by program fees o +$68,000 – Resumption of Day Camp Field Trips; offset by program fees

• Finance

NEW COST
o +$100,000 - Finance / HR System Needs Assessment and Related Services o +$40,000 – Comprehensive User Fee Study Update
o +$89,000 – Citywide Procurement Study

INCREASED COST
o +$30,000 – Increased County Property Tax Administration Fees; offset by increases to Property Tax revenue

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) • Community Development

NEW COST
o +$10,000 – Enhancements to Permitting Software
o +$25,000 – Downtown Parking Study

INCREASED COST
o +$13,000 – Increased Office Supply and Equipment expenses

• Legal Services

INCREASED COST
o +$52,000 – Increased Citywide Legal Services needs

• Public Safety

NEW COST
o +$35,000 – SWAT Replacement Vests and CERT Equipment
o +$25,000 – Drone Software and Supplies
o +$50,000 – Intersection LPR Cameras annual costs (approved at FY 2022 Mid- Year)

INCREASED COST
o +$10,000 – Increased General Recruitment costs
o +$25,000 – Increased Contractual Background Check costs for recruitments o +$24,000 – Increased Arson and POST (reimbursable) Training costs o +$20,000 – Increased Mobile Connectivity costs
o +$454,000 – Contractual increase to County Fire Services agreement

• Public Works

NEW COST
o +$100,000 – Facilities Conditions Assessment

INCREASED COST
o +$40,000 – Increased use of Engineering Consultant Services o +$116,000 – Anticipated cost increases to Contractual Custodian Services

• Non-Departmental

INCREASED COST
o +$52,800 – Increased Utility Costs
o +$314,300 – Increased General Liability and Property Insurance Premiums and Claims expense

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL ADOPTING THE CITY'S OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2023 WHEREAS, there has been submitted to the City Council a proposed budget for the operation of all departments and facilities of the City of Campbell for Fiscal Year (FY) 2023, and there has been submitted to the City Council a proposed budget for the capital expenditures related to City projects, and
WHEREAS, the City Council held meetings to review the proposed operating and capital budget; and the City Council took action to adopt the proposed budget; NOW, THEREFORE, BE IT RESOLVED, by the City Council that as of July 1, 2022 the amount of $111,667,775 be fixed as the amount necessary to meet all municipal operating requirements (excluding any further changes resulting from this public hearing and/or any miscellaneous corrections), and that the amount of $48,108,862 be fixed as the amount necessary to meet the capital requirements of the City and that the same is hereby approved, confirmed and adopted at the combined total of $159,776,637; and BE IT FURTHER RESOLVED that the Finance Director is hereby authorized to make any changes resulting from the public hearing to adopt the FY 20 23 operating and capital budget or any miscellaneous corrections due to more refined estimates and incorporate these changes into the final published FY 2023 operating and capital budget document.

PASSED AND ADOPTED this _______day of _________, 2022, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

___________________________________
Paul Resnikoff, Mayor

ATTEST:

___________________________________
Dusty Christopherson, City Clerk

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Attachment: Resolution - FY 2023 Operating and Capital Budget (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets) RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL APPROVING THE PROPOSED FISCAL YEARS 202 3-2027 5-YEAR CAPITAL

IMPROVEMENT PLAN (CIP) AND FINDING THE CIP TO BE CONSISTENT WITH THE CAMPBELL GENERAL PLAN PURSUANT TO § 65401 OF THE STATE OF

CALIFORNIA GOVERNMENT CODE AND EXEMPT FROM REVIEW UNDER THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
WHEREAS, after due consideration of all evidence presented, the City Council does find as follows with respect to the FY 2023-2027 CIP:

1. The proposed CIP is consistent with the Campbell General Plan, pursuant to §65401 of the State of California Government Code;

2. The proposed CIP is exempt from review under the California Environmental Quality Act (CEQA) in that it is not a “project” a s defined by Public Resources Code § 21065 being an administrative activity of the City that will not result in direct or indirect physical changes to the environment pursuant to CEQA Guidelines § 15378.

WHEREAS, based upon the foregoing findings of fact, the City Council further finds and concludes that:

1. The CIP is consistent with the Campbell General Plan; and

2. No substantial evidence has been presented from which a reasonable argument could be made that the CIP projects would have a significant adverse im pact on the environment.

NOW, THEREFORE, BE IT RESOLVED that the City Council finds the proposed CIP to be consistent with the Campbell General Plan pursuant to § 65401 of the State of California Government Code and exempt from review under the California Environmental Quality Act (CEQA); and,

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Attachment: Resolution - FY 2023 Conformance to General Plan (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets)

BE IT FURTHER RESOLVED that the City Council approves the Fiscal Year 202 3- 2027 Capital Improvement Plan with projects totaling $90,112,463; including new capital projects of $4,104,155 and $44,254,690 as the amount necessary to meet the capital requirements of the City in FY 2023.

PASSED AND ADOPTED this_______ day of __________, 2022, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:
___________________________________
Paul Resnikoff, Mayor

ATTEST:

___________________________________
Dusty Christopherson, City Clerk

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Attachment: Resolution - FY 2023 Conformance to General Plan (Introduction of Fiscal Year (FY) 2023 Operating & Capital Budgets)

City
Council
Report

TITLE: Resolution Authorizing the Second Issuance and Sale of General Obligation Bonds in an Aggregate Principal Amount Not to Exceed $30,000,000 (Resolution/Roll Call Vote)

RECOMMENDED ACTION

That the City Council adopt a Resolution authorizing the issuance of $30,000,000 Election of 2018 General Obligation Bonds, Series 2022; approve the form of a Preliminary Official Statement; and authorize certain other actions in c onnection therewith.

BACKGROUND

On November 6, 2018, City of Campbell (the “City”) voters approved Measure O with a ‘Yes’ vote of 69.5% by the citizens that voted in the General Election. Measure O authorized the sale of up to $50,000,000 of general obli gation bonds to fund a police emergency operations center that is fully operational during a disaster and an energy - efficient library that is seismically safe and accessible.

On August 19, 2020, the City issued its $20,000,000 City of Campbell Election of 2018 General Obligation Bonds, Series 2020, the first series of bonds under the Measure O authorization. The City has begun work on the voter -approved projects, and is ready for the second tranche of Measure O funds.

DISCUSSION

City staff, working with its financing team of Jones Hall (bond and disclosure counsel), NHA Advisors, LLC (municipal advisor), and Stifel, Nicolaus & Company (underwriter) has evaluated the option of issuing the second series of bonds. Current market rates are below the cost of funds assumed in the election materials (4.25%). Locking in the lower rate will secure a bond debt service that will reduce the tax rate required over the life of the outstanding bonds.

City staff is recommending the second, and final, series of bonds be issued for $30,000,000. The projected tax rate is anticipated to be lower than originally estimated in the election materials.

FISCAL IMPACT
Item: 19
Category: NEW BUSINESS
Meeting Date: May 17, 2022
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Authorization of Second Issuance of Measure O Bonds Page 2 of 2

The 2022 Bond debt service will be paid from tax revenues levied on all taxable properties within the City’s j urisdiction. Staff plans to seek Council authorization on FY 2023 Measure O property tax rates on July 19, 2022; which will take into account the proposed 2022 issuance. Proceeds from the 2022 Bonds will be used to fund the remaining Measure O project costs. There will be no impact on the City’s general fund.

An exhibit to the Resolution includes information required to be disclosed in a meeting open to the public pursuant to SB 450. Such information includes true interest cost of the bonds, finance char ge of the bonds, amount of proceeds received by the City, and total payment amount.

ALTERNATIVES

1. Issue remaining Measure O bonds at a later date. Staff does not recommend this approach due to interest rates which are expected to rise over the year.

2. Provide staff with other direction.

Prepared by:

Will Fuentes, Finance Director

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Draft Resolution with Exhibit A & B
b. Draft Bond Purchase Agreement
c. Draft Preliminary Official Statement (POS)
19 Packet Pg. 132
RESOLUTION NO. _____

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

CAMPBELL AUTHORIZING THE ISSUANCE AND SALE

GENERAL OBLIGATION BONDS IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $30,000,000, AND

AUTHORIZING ACTIONS RELATED THERETO

WHEREAS, an election was duly and regularly held in the City of Campbell (the “City”) on November 6, 201 8, for the purpose of submitting Measure O (the “Bond Measure”) to the qualified electors of the City; and

WHEREAS, the abbreviated form of the Bond Measure was:

“To provide a police emergency operations center that is fully operational during a disaster and an innovative library in seismically safe, accessible, and energy efficient facilities meeting current safety codes, shall the City of Campbell’s measure to issue $50,000,000 in general obligation bonds with projected levies of $0.019 per $100 ($19 per $100,000) of assessed value, generating an estimated average of $3,025,000 annually to repay bonds through maturity, with citizen oversight and all funds spent locally, be adopted?”; and

WHEREAS, the City is empowered under Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Bond Law”) to its is sue general obligation bo nds which are authorized by two-thirds of the electors voting on the proposition; and

WHEREAS, more than two -thirds of the electors voting at an election held on November 6, 2018, voted for the Bond Measure, authorizing the issuance by the City of general obligation bonds in the ag gregate principal amount of $ 50,000,000 for the purpose of providing funds for the acquisition and improvement of City facilities; and

WHEREAS, on August 19, 2020, the City issued its $20, 000,000 Election of 2018 General Obligation Bonds, Series 2020, pursuant to th e Bond Mea sure, leaving $30,000,000 of authorization remaining under the Bond Measure; and

WHEREAS, the City Council wishes at this time to authorize the issu ance and sale of a second and final series of general obligation bonds under such authority in the aggregate principal amou nt of not to exceed $30,000,000 (the “Bonds”) under this Resolution and in conformity with the Bond Law; and

WHEREAS, in accordance with Governme nt Code Section 5852.1 , attached hereto as Appendix B is the information relating to the Bonds that has been obtained by the City Council and is hereby disclosed and made public; and

WHEREAS, the City Council previously approved a Debt Management and Disclosure Policy which complies with Government Code Section 8855, and the delivery of the Bonds will be in compliance with said policy;

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NOW, THEREFORE, BE IT RESOL VED by the City Council of the City of Campbell, as follows:

ARTICLE I

DEFINITIONS; AUTHORITY

SECTION 1.01. Definitions. The terms defined in this Section 1.01, as used and capitalized herein, shall, for all purposes of this Resolution, have the meaning s given them below, unless the context clearly requires some other meaning.

“Bond Counsel” means (a) Jones Hal l, A Professional Law Corporat ion, and (b) any other attorney or firm of attorneys nationally recognized for expertise in rendering opinions as to the legality and tax-exempt status of securities issued by public entities.

“Bond Law” means Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government C ode of the State of California, commencing with Section 53506 of said Code, or such other law pursuant to which the Bonds may be issued, as in effect on the date of adoption hereof and as amended hereafter.

“Bond Measure” means Measure O submitted to and approved by more than the requisite 2/3 of v oters on November 6, 2018, under which he issuances of the Bonds has been authorized.

“Bond Purchase Agreement ” means the Contract of Purchase between the City and the Underwriter, under which the Underwriter ag rees to purchase the Bonds and pay the purchase price therefor.

“Bonds” means the City of Campbell Election of 2018 General Obligation Bonds, Series 2022 , authorized to be issued under thi s Resolution in the aggregate principal amount of not to exceed $30,000,000.

“City” means the City of Campbell, a general law city and municipal corporation organized under the Constitution and laws of the State of California, and any successor thereto.

“City Representative” means the Mayor, the City Manager, the Finance Director, the Finance Manager, and any other officer of the City authorized by resolution of the City Council of the City to act on behalf of the City with respect to this Resolution and the Bonds.

“Closing Date” means the date up on which there is a delivery of the Bonds in exchange for the amount representing the purchase price of the Bonds by the Underwriter.

“Continuing Disclosure Certificat e” means the Continuing Disclo sure Certificate to be executed and delivered by a City Representative on the Closing Date.

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“Costs of Issuance” means all item s of expense dir ectly or indirectly payable by or reimbursable to the City and related to the authorization, iss uance, sale and d elivery of the B onds, including but not limited to the cos ts of prepara tion and r eproduction of documents, printing expenses, f iling and record ing fees, initial fees and charg es of the Paying Agent and its counsel, legal fees and charges, fees and disburse ments of consultants and professionals, rating agency fees, fees and charges for the preparation, execution and safek eeping of the Bonds, fees and ch arges for preparatio n, exe cution and safekeeping of the Bonds and any ot her cost, charge or fee in conne ction with the original issuance of the Bonds.

“County” means the County of Santa Clara, a political subdivision of the State of California, duly organized and existing under the Constitution and laws of the Sta te of California.

“Debt Service Fund ” means the account established and held by th e City under Section 4.03.

“Depository” mean s (a) initially, DTC, and (b) any other Securities Depository acting as Depository under Section 2.09.

“Depository System Participant” means any participant in the Deposit ory’s book- entry system.

“DTC” means T he Depository Trust C ompany, New York, New Yo rk, and its successors and assigns.

“Federal Securities ” means United S tates Treasury notes , bond s, b ills or certificates of in debtedness, or a ny o ther obligations the tim ely payment of which is directly or indirectly guaranteed by the faith and credit of the United States of America.

“Interest Payment Date ” means September 1, 2022, and the fi rst da y of each succeeding March and September, or such other dates det ermined by a C ity Representative in connection with the pricing of the Bonds.

“Outstanding,” when used as of any parti cular time with reference to Bonds, means all Bonds except: (a) Bonds theretofore canceled by the Payi ng Age nt o r surrendered to the Payin g Agent for c ancellation; (b) Bonds paid or deeme d to have been paid within the meaning of Section 9.02; and (c) Bonds in lieu of or in substitution for which other Bonds shall have been authorized, executed, issued and delivered by the City under this Resolution.

“Owner,” whenever u sed herein with resp ect to a Bond, means the person in whose name the ownership of such Bond is registered on the Registration Books.

“Paying Agent ” means the agent appoint ed by the C ity an d ac ting as paying agent, registrar and authenticating agent for the Bonds, its successors and assigns, and any other corporation or association which may at any time be substituted in its place, as provided in Section 6.01.

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“Principal Office” means the office or offices of the Paying Agent for the payment of the Bonds and the administration of its duties hereunder, as such office or offices shall be identified in a written notice filed with the City by the Paying Agent.

“Project Fund” means the fun d established and held by the City u nder Section

4.02. “Record Date” means the 15 th day of the month prec eding an Interest Pay ment Date, whether or not such day is a business day.

“Registration Books” means the records maintained by t he Paying Agent for the registration of ownership and registration of transfer of the Bonds under Section 2.08.

“Resolution” means this Resolution, as ori ginally adopted by the Cit y Council on May 17, 2022, and including all amendments hereto and supplements hereof which are duly adopted by the City Council from time to time in accordance herewith.

“Securities Depositories ” me ans DTC; and, in accor dance wi th t hen current guidelines of the Securities and Exchang e Commission, such other securiti es depositories as the City may designate.

“Supplemental Resolution” means any resolution supplemental to or amendatory of this Resolution, adopted by the City in accordance with Article VIII.

“Tax Code” means the Internal Revenue Code of 1986 as in effect on the Closing Date or (except as otherwise referenced herein) as it may be a mended t o a pply to obligations issue d on the Closing Date , together with applic able, te mporary and final regulations promulgated, and applicabl e official public guidance publis hed, un der said Code.

“Underwriter” mea ns Stifel, Nicolaus & Compan y, Incorporated , as original purchaser of the Bonds upon the negotiated sale the reof, as de signated pursuant to Section 3.01.

“Written R equest of the City” means an instrument in writing signed by a City Representative or by any other officer of the City d uly authorized to act on behalf of the City under a written certificate of a City Representative.

SECTION 1.02. Interpretation.

(a) Unless the context otherwise indicates, words expressed in the singular shall include the plural and vice versa and the use of the neuter, masculine, or femi nine gender is for convenience only and shall be deemed to include the neuter, masculine or feminine gender, as appropriate.

(b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of ref erence, do not cons titute a p art hereof and shall no t affect the meaning, construction or effect hereof.

(c) All references herein to “Articles,” “Sections” and other s ubdivisions are to the corresponding Articles, Sections or subdivisio ns of this Resolut ion; the words

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“herein,” “hereof,” “hereby,” “hereunder” and other words of similar import r efer to this Resolution as a whole and not to any particular Article, Section or subdivision hereof.

SECTION 1.03. Authority for this Resolution; Findings. This Resolution is entered into under the provisions of t he Bond L aw. It is hereby certified that all of the t hings, conditions and acts required to exist, to have happened or t o have been performed precedent to and in the issuance of the Bon ds do exist, have happened or have be en performed in due and regular t ime and m anner as re quired by the laws of the State of California, and that the amount of the Bonds, together with al l other indebtedness of the City, does not exceed any limit prescribed by any laws of the State of California.

ARTICLE II

THE BONDS

SECTION 2.01. Authorization. Bonds in the aggregate original principal amount of not to exceed $30,000,000 are hereby authorized by the City to be issued by the City under and subject to the terms of the Bo nd Law and this Resolution, for the purpose of raising money to finance the acquisition and improvement of City facilities, as provided in the Bond Measure, and to pay the Costs of Issuance incurred in connection therew ith.

This Resolution constitutes a continuing agreement between the City and the Owners of all of the Bonds issued or to be issued hereunder and then Outstanding to secure the full and final payment of principal of and interest and premium, if any, on all Bonds which may be O utstanding hereunder, su bject to th e covenants, agreements, provisions and conditions herein contained. The Bonds may be issued in one or more series as tax - exempt and/or taxable bonds are design ated the “City of Campbell Election of 2018 General Obligation Bonds, Series 2022.”

SECTION 2.02. Terms of Bonds.

(a) Principal Amount of Bonds. The Bonds are authorized to be issued in the aggregate principal amount of not to exceed $30,000,000.

(b) Form; Numbering. The Bonds will be issued in fully registered form, without coupons, in aut horized denominations of $5,000 each or an y integral m ultiple t hereof.

The Bonds will be lettered and numbered as the Paying Agent prescribes.

(d) CUSIP Identification Numbers . “CUSIP” identification numbers will be imprinted on the Bonds , but suc h nu mbers do not cons titute a p art of the contract evidenced by th e Bo nds and no error o r omission with respect thereto will constit ute cause for refusal of the Underwriter to accept de livery o f and pay fo r t he Bonds. In addition, fai lure on the p art of t he C ity to use suc h CU SIP numbers in any notice to Owners of the Bonds will not constitute an event of default o r any violation of t he City’s contract with such Owners and will not impair the effectiveness of any such notice.

(e) Determination of Maturities and Interest Rates. The Bonds shall mature (or, alternatively, be s ubject to mandatory sinking fund redempti on as hereinafter pr ovided) on September 1 in each year , as determined up on the s ale thereof as provided in the

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Bond Purcha se Ag reement. The ex act principal amoun t o f t he Bonds maturing on September 1 in each year shall be dete rmined upon the sale of the Bonds, in accordance with the Bond Purchase Agreement.

Each Bond will be ar interest at the r espective rates to be determin ed upon the sale of t he Bonds in accorda nce with Article III. Interest on the Bo nds is paya ble from the Interest Payment Date next preceding the date of authentication thereof unless:

• a Bond is authentica ted as o f an Interes t P ayment Date, in which event it will bear interest from such date,

• a Bond is authenticated prior to an Interest Payment Date and aft er the close of business on the preceding Record Date, in which event it will bear interest from such Interest Payment Date,

• a Bond is authenticated o n or before the first Record Date, in wh ich event it shall bear interest from the Closing Date, or

• at the time of authentication of a Bond, interest is in default thereon, in which event it will bear inter est from the Interes t P ayment Date to which intere st ha s previo usly bee n pa id or made avai lable for payment thereon.

(f) Manner of Payment. Interest on t he Bonds (including the final interest payment upon maturity) is payable by check of the Paying Agent mailed to the Owner thereof at such Owner’s address as it appears on the Registration Books at the close of business on the preceding Record Date; except that at the written request of the Owner of at least $1,000,000 aggregate principal amount of the Bon ds, which written request is on file with the Payi ng Agent as o f any Re cord Date, interest on such Bonds shall be paid by wire tran sfer on the succeeding I nterest Payment Date to an account in the United States of America as shall be specified in such writ ten request. Principal of and premium (if any) on the Bonds is payable in lawful money of the U nited States of America upon presentation and surrender at the Principal Office of the Paying Agent.

(g) Provisions of Bond Purchase Agreement to Control . Not withstanding the foregoing provisions of this Sect ion and the f ollowing provisions of Section 2.0 3, any of the terms of the Bonds may be estab lished or modified under the Bond Purchase Agreement. In the event of a conflict or inconsistency between this Re solution and the Bond Purchase Agreement relating to the terms of the Bonds, the provisions of the Bond Purchase Agreement will be controlling.

SECTION 2.03. Redemption.

(a) Optional Redemption . The Bonds shall be subject to redemption prior to maturity, at the option of the City, in whole or in part among maturities on such basis as designated by the City and by lot with in a maturity, from any available source of funds, on the dates and upon payment of a redemption price (equal to the principal amount of Bonds to be redeemed together with a redemption premium, if any) as determined upon the sale of the Bonds in accordance with the Bond Purchase Agreement.

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(b) Mandatory Sinking Fund Redemption . If an d to the extent specified in the Bond Purchase Agreem ent, any maturity of the Bonds will b e d esignated as “Term Bonds” which are subject to mandatory sinking fund redemption on September 1 in each of t he years and in the respective principal amounts set fo rth in such bid, at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed, in each ca se wit hout premium, together with interest accrued thereon to the redemption date. I f some but not all of the Term Bonds have been redeemed under the preceding subsection (a) of this Section, the aggr egate princi pal amount of Ter m B onds to be redeemed in each year under this subsection (b) shall be reduced on a p ro rata basis in integral multiples of $5,000, as designated in written notice fi led by the City with the Paying Agent.

(c) Selection of Bond s for Redemp tion. Whenever l ess than all of the Outstanding Bonds of any one maturity are designated for redemption, the Paying Agent shall select the Outstanding Bonds of such maturity to be re deemed by lot in any manner deemed fair by the Paying Agent. For purposes of such selecti on, each Bond shall be dee med to consist of individual Bonds of $5,000 denominations which may be separately redeemed.

(d) Redemption Procedure . The Paying Agent sh all cause notice of any redemption to be mailed, first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption, (i) to the Securities Depositories and the Municipal Securities Rulemaking Board , and (ii ) to the respective Owners of any Bonds designated fo r redemption, at the ir addresses appe aring on the Registration Books. Such mailing shall not be a condition precedent to such redemption and failure to mail or to receive any such notice shall not affec t the validity of the proceedings for the redemption of Bonds. The City is entitled to send a redemption notice that declares that the r edemption i s conditional upon t he availability of moneys to accomplish the redemption, and the City may rescind any notice of optional redemption of the Bonds by written notice to the Paying A gent on or prior to the date fixed for rede mption, and the Paying Agent shall mail notice of su ch rescission of redemptio n in the same manner as the original notice of redemption was sent under this section. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption. The City and the Paying Agent shall have no liability to the Owners or any other party related to or arising from such rescission.

Such notice shall state the redemption date and the redemption price and, if less than all of the th en Outstanding Bonds are to be called for rede mption, shall designate the serial numbers of the Bonds to be redeemed by giving the individual number of each Bond o r by stating that all Bonds between tw o stated numbers, both inclusive, or by stating that all of the Bonds of on e or more maturities have been called for redemption, and shall require that such Bonds be t hen surrendered at the Principal Office of the Paying Agent for redemption at the said re demption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date.

Upon surrender of Bonds redeemed in pa rt only, the City shall execute and the Paying Agent shall authenticate and deliver to the Own er, at the expense of the City, a new Bond or Bonds, of the same maturity, of authorized denomination s in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds.

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From and after the date fix ed for redemption, if notice of such rede mption has been duly given and funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption have b een duly provided, such Bonds so called will cease to be entitled to any benefit under this Re solution other than the right to receive payment of the redemption price, and no interest will accrue thereon on or after the redemption date specified in such no tice. The Paying Agent shall cancel all Bonds redeemed under this Section 2.03, and shall submit to the City a cert ificate of cancellation.

SECTION 2.04. Form of Bonds. The form of the Bonds, including the form of the Paying Agent’s Certificate of Auth entication and the form of Assignment to appear thereon, with necessary or appropriate variations, omissions and insertions, as permitted or required by this Resolution, are set forth in Appendix A attached hereto.

SECTION 2.05. Execution of Bonds . The Bonds shall be executed on behalf of the City by the facsimile signatures of its Mayor and City Clerk, or officials acting in those roles, who are in office on the date of ad option of th is Resolution or at any time thereafter. If any officer whose signature appears on any Bond ceases to be such officer before delivery of t he Bonds to th e Underwriter, such signature will nevertheless be as effective as if the offi cer had remained in office until the de livery of the Bonds to the Underwriter. Any Bond may be signed and attested on beha lf of the City by such persons as at the actual date of the execution of such Bond are the proper officers of the City although at the nominal date of such Bond any such person does not serve as such officer of the City.

Only those Bonds bearing a Certifi cate of A uthentication in the form set fo rth in Appendix A attached he reto, executed and dated by the Paying Agent, will b e valid or obligatory for any purpose or en titled to the benefits of this Resolutio n, and such Certificate of Authentication of the Paying Agent constitutes conclusive evidence that the Bonds so registere d have been duly a uthenticated, registered and delivered hereunder and are entitled to the benefits of this Resolution.

SECTION 2.06. Transfer of Bonds. Any Bond may, in accordance wi th its terms, be transfer red, upon the Re gistration B ooks, by the pers on in whose name i t is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation at the Pr incipal Office at the Paying Agent, accompanied by delivery of a written instrument of trans fer in a form approved by the Paying Agent, dul y executed.

The City may charge a reasonable sum for each new Bond issued upon any transfer.

Whenever any Bond or B onds is surrendered for transfer, the City shall ex ecute and the Paying Agen t shall authenti cate and del iver a new Bond o r B onds, for like aggregate principal amount.

SECTION 2.07. Exchange of Bonds . Bonds may be exchanged at the Principal Office of the Paying Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The C ity may charge a r easonable sum for each new Bond issued upon any exchange.

SECTION 2.08. Registration Books. The Paying Agent shall keep or cause to be kept sufficient books for the registration and transfer of the Bonds, w hich shall a t all times be open to inspection by the City upon reasonable notice; and, upon presentation

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for such purpose, t he Paying Agent shall, under such reason able regulations as it may prescribe, register or t ransfer or cause to be re gistered or tran sferred, on said books, Bonds as herein before provided.

SECTION 2.09. Book-Entry System. Except as provided below, DTC w ill be the Owner of all of the Bonds, an d the Bonds will be registered in the name of Cede & Co. as nominee for DTC. The Bonds shall be initially executed and delivered in the form of a single fully reg istered Bo nd for each maturity date of the Bonds in t he full aggregate principal amount of th e Bonds mat uring on such date. The Paying Agent an d the City may treat DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for all purposes of this Resolution, and neither the Paying Agent nor the City shall be affected by any notice to the contrary. The Paying Agent and the City shall not have any responsibility or obligation to any De pository System Pa rticipant, any person claiming a b eneficial o wnership interest in the Bonds u nder or through DTC or a Depository System Participant, or any other person which is not shown on the register of the City as being an owner, with respect to the accuracy of any r ecords maintained by DTC or any De pository System Participant or the payment by DTC or any Depository System Particip ant by DTC or any Depository System Participant of any amoun t in respect of the principal or interest with respect to the Bonds. The City shall cause to be paid a ll princip al and inte rest with respect to the Bonds o nly to DTC, and all such payments shall be valid and effective to fully satisfy and dischar ge the City’s obligations with respect to the principal and interest w ith respect to the Bonds to the extent of the sum or sums so pa id. Except under the conditions noted below, no person other than DTC shall receive a Bond. Upon delivery by DTC to the C ity of wr itten notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the term “Cede & Co.” in this Resolution shall refer to such new nominee of DTC.

If the City determines that it is in the best interest of the beneficial owners that they be able to obtain Bonds and delivers a written certificate to DTC and the City to that effect, DTC shall notify the Depository System Par ticipants of the availability through DTC of Bonds. In such event, the City shall issue, t ransfer a nd exchange Bond s as requested by DTC and any other owners in appropriate amounts. DTC may determine to disconti nue providi ng its services with respect to the Bonds at any time by giving notice t o the City and discharging its responsibilities wit h respect thereto under applicable law. Under s uch c ircumstances (if there is no succes sor secu rities depository), the City shall be obligated to deliver Bonds as d escribed in this Resolution.

Whenever DTC requests the City to do so, the City will cooper ate with DTC in taking appropriate action after reasonable notice to ( a) make available one or m ore separate Bonds evidenc ing the Bon ds to any Depository System Part icipant having Bonds credited to its DTC account or (b) arrange for another securities depo sitory to maintain custody of certificates evidencing the Bonds.

Notwithstanding any other provision of this Resolution to the contrary, so long as any Bond is regi stered in the name of Cede & Co., as nom inee of DTC , all payments with respect to the princ ipal and interest with re spect to such Bo nd and all notices with respect to such Bond sh all be m ade and given, respectively, to DTC a s provided as in the representation letter delivered on the date of issuance of the Bonds.

SECTION 2.10. Bonds Mutilated, Lost, De stroyed or Stole n. If any Bond becomes mutilated the City, a t the expense of t he Owner of said Bond, shall execute, and the Paying Agent shall thereupon au thenticate and deliver, a new Bond of li ke

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maturity and principal amount in exchange and su bstitution for the Bond s o mutilated, but only u pon s urrender to the P aying Agent of the Bond so mutilated. The Paying Agent shall c ancel every mutilated Bond so su rrendered to it. If any Bond is lost, destroyed or stolen, evidence of such loss, destruct ion or theft may be submi tted to the City and, if such evidence is sat isfactory to the C ity and the City receives satisfactory indemnity, the City, at the expense of the Owner, shall execute, and the Payin g Agent shall thereupon authenticate and deliver, a new Bond of like maturit y and principal amount in lieu of and in substitution for the Bond so lost, destroyed or stolen.

The City m ay require payment of a sum not exceeding the actual cost of preparing each new Bond issued under this Section and of the e xpenses which may be incurred by the City and the Paying Agent. Any Bond issued under the provisions of this Section 2.10 in lieu of any Bond alleged to be lost, de stroyed or stolen will constitute an original additional contractual obligation of the City whether or not the Bond so alleged to be lost, destroyed or stolen is at any time enforceable by anyone, and such Bond will be equally and proportionately entitled to the benefits of this Resolution with all other Bonds issued under this Resolution.

Notwithstanding any other pro vision of this S ection 2.10, in lieu of deliv ering a new Bond for which principal has or is about to become due for a Bond which has been mutilated, lost, destroyed or stolen, the Paying Agent may make payment of such Bond in accordance with its terms.

ARTICLE III

SALE OF BONDS

SECTION 3.01. Negotiated Sale of Bonds. Pursuant to Section 53508.7 of the Bond Law, the City Council hereby authorizes the negotiated s ale of the Bonds to the Underwriter. The Bonds shall be sold pursuant t o t he Bond Purchase Agreement in substantially the form on file with the City Clerk, with such changes therein, dele tions therefrom and modifications thereto as a City Representative may approve, suc h approval to be conclusively evidenced by the execution and delivery by a City Representative of t he Bond Purchase Agree ment, provided tha t the Bo nd P urchase Agreement shall contain the following terms:

(i) the Bonds shall bear a rate of interest of not to exceed 5.0% per annum and the final maturity shall not exceed the limits contained in the Bond Law; and

(ii) the Un derwriter’s discount shall n ot exc eed 0.375% of the principal amount of the Bonds.

The City Council hereby authorizes a City Representative to execute and deliver the final form of the Bond Purchase Agreement in the name and on behalf of the City.

In acco rdance with Section 53508. 7 of the Bond La w, the City Council has determined to sell the Bonds at negotiated sale for the following reas ons: (a) a negotiated sale provides more flexibility to choose the time and date of the sale which is

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often advantageous in the municipal bond market; (b) the involvement of the Underwriter in preparing documents, rating agency presentations and structurin g bonds generally enhances the quality and results of the bond offering; (c) a negotiated sale will permit the time schedule for the issuance and sale of the Bonds to be expedited, if necessary; (d) a negotiated sale provides the City access to the underwr iter’s trading desk for providing estimates of the cost of various bond structures (yields, discounts, premiums and maturities) for the purpose of evaluating alternative potential bon d structures with the goal of producing the best match between City objectives and investor acceptance and demand; and (e) a negotiated sale pro vides time for underw riters to educate potential investors about the City and the Bonds with the goal of maximizing investor orders and reducing interest cost on the day of bond pricing.

As required pursuant to Section 53509.5 of the Bond Law, after the sale of the Bonds, th e City Council will present actual cost information of the sal e a t its next scheduled public meeting.

SECTION 3.02. Official Statement. The City Council hereby approves and deems final within the meaning of Rule 15c2-12 of the Secur ities Exchange A ct of 1934 (the “Rule”), the Preliminary Official Statement describing the Bonds in substantially the form on file with the Ci ty Clerk . A City Representative is hereby authorized to execute an appropriate c ertificate stating the City Counc il’s determination t hat the Preliminary Official Statement has been deemed final within the meaning of such Rule. Distribution of the Prelimi nary Official Statement in connection with the sale of the Bonds is hereby approved. Eac h City Representative is hereby authorized an d directed to approve any changes in or additions to a final fo rm of said Offi cial Statement , a nd the execution thereof by a City Representative shall be conclusive evidence of the approval of any such changes and additions. The City Council hereby authorizes the distribution of the final Official Statement. The final Official Statement shall be executed in the name and on behalf of the City by a City Representative.

SECTION 3.03. Costs of Issuance Cu stodian Agreement. The City shall pay the costs of i ssuing the Bonds from proceeds of the Bonds received from the Underwriter.

The City Council hereby authorizes a City Representative to execute on behalf of the City a Costs of Issua nce Custodian Agreement with a custodian for costs of issuance.

As provided in said agreement, amounts provided for payment of the costs of issuing the Bonds shall be deposited thereunder and the payment of costs shall be requisitioned by a City Representative in accordance with said agreement.

SECTION 3.04. Paying Agency Agreement. The City Council hereby authorizes a City Representative to execute, on behalf of t he City, a Paying Agency Agreement with the Paying Agent.

Section 3. 05. Professional Serv ices. The City Council hereby approves and confirms the engagement of NHA Advisors, LLC, to act as the City’s municipal advisor in connection with the issuance and sale of the Bonds, and the engagement of Jones Hall, A Pro fessional L aw Corporation, to act as the City’s bond counse l and disclosure counsel in connection with the issuance of the Bonds.

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ARTICLE IV

FUNDS AND ACCOUNTS

SECTION 4.01. Application of Proceeds of Sale of Bonds . On the Closing Date, the proceeds of sale of the Bonds shall be paid by the Underwriter to the City, and shall be applied on t he Closing Date as follows: (a) the City shall cause to be tr ansferred an amount required to pay the estimated Costs of Issuance to a custodian, to be held and administered in accordance with the a greement which is approved u nder Section 3.03; (b) after making the transfer described in the preceding clause (a), the City shall deposit in the Debt Service Fund any remaining original issue premium received by the City on the sale of the Bonds; and ( c) the City sha ll deposit the r emainder of such proc eeds in the Project Fund.

SECTION 4.02. Project Fund. The City Council hereby establishes a special fund to be held by the City separate and apart from all other funds of the City, to be known as the Project Fund. The proceeds from the sale of the Bonds, to the extent required under Section 4.01(b), sha ll be deposited by t he City in the Project Fun d, and shall be expended by the City so lely for the payment of the costs of acquisition or improvement of real property for which the Bon d proceeds are author ized to be expe nded under the Bond Measure. All int erest and ot her gain arising from the investme nt of amounts deposited to the Project Fund shall be retained in the Projec t Fund and used for the purposes thereof. Any amounts rem aining on deposit in the Project Fun d and not needed for the p urposes thereof shall be wi thdrawn from the Project Fund and transferred to the Debt Service Fund, to be applied to pay the principal of , interest and premium (if any) on the Bonds.

SECTION 4.03. Debt Service Fund . The City Council here by e stablishes a special fund to be held by the City separate and apart from all other funds of the City, to be known as the Debt Service Fund. All taxe s levied by the County, as di rected by the City herein, for the payment of the p rincipal of and interest and premium (if any) on the Bonds in accordance with Section 5.03 shall be d eposited in the Debt Service Fund by the City promptly upon the receipt the reof from the County. The De bt Service Fund i s hereby pledged for the payment o f the principal of and interest and premium (if any) on the Bonds when a nd as the same become due. T he City shall transfer amounts in the Debt Service Fund, to the extent nece ssary to pay the principal of and interest on the Bonds as the same become due a nd payable, to the Payi ng Agent as req uired to pay the principal of and interest and premium (if any) on the Bond s. Alternatively, the City may direct the County to transfer s uch taxes, in whole or in par t, directly to th e Paying Agent for the purpose of making payments of prin cipal of and in terest and premiu m (if any) on the Bonds.

If, after payment in full of the Bonds, any amounts remain on deposit in the Debt Service Fund, the City shall transfer such amounts to its general fund, to be applied solely in a manner which is co nsistent with t he requirements o f a pplicable stat e and federal tax law.

SECTION 4.04. Investments. The City shall invest all moneys held in any of the funds or accounts establishe d with it hereund er in acc ordance with the investme nt

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policies of the City , as such polic ies shall exist a t t he tim e of inv estment, a nd in accordance with Section 53601 of the California Government Code.

The City covenants tha t all investments of amounts deposited in any fund or account created by or under t his Resolution, or ot herwise containi ng proceeds of the Bonds, s hall be acq uired and disposed of a t the Fair Market Value thereof. For purposes of this Section, the term “F air Market Value” shall mean, with respect to any investment, the price at which a willing buyer would p urchase such inv estment from a willing sell er in a bon a fide, arm’s length tr ansaction (determined as of the date the contract to purchase or sell the i nvestment becomes binding) if the investment i s traded on an established securities market (within the m eaning of Sectio n 1273 of the T ax Code) and , otherwise , the term “Fair Market Value” means the acquisition price in a bona fide arm’s length transaction (as described above) if (i) the investment is a certificate of deposit that is acquired in accordance with applicable regulations under the Tax Code, (ii) the investment is an agre ement with specifically negotiated withdrawal or reinvestment provisions an d a specifically negotiated interest rate (for example, a guaranteed investment con tract, a forward supp ly contract or o ther investment agreement) that is acq uired in accordance wit h applicable regulations under the Tax Code, or (iii) the investment is a U nited States Treasury Security - State and Loc al Government Series that is acquired in accordance with a pplicable regula tions of the United States Bureau of Public Debt.

ARTICLE V

OTHER COVENANTS OF THE CITY;

SECURITY FOR THE BONDS

SECTION 5.01. Punctual Payment. The City shall punctually pay, or cause to be paid, the principal of and interest on the Bonds, in strict conformity with the terms of the Bonds and of this Resolution , and shall faithfully observe and perfor m all of the conditions, covenants and requirements of this Re solution and of the Bonds. Nothing herein contained prevents the City from making advances of its own moneys howsoever derived to any of the uses or purposes permitted by law.

SECTION 5.02. Extension of Time for Payme nt. In order to prevent any accumulation of cla ims for interest after maturity, th e City will not, directly or i ndirectly, extend or consent to the extension of the t ime for the payment of any claim for interest on any of the Bonds and will not, directly or indirectly, approve any such arrangement by purchasing or funding said claims for interest or in any other manner.

SECTION 5.03. Security for the Bonds. The Bonds are general obligations of the City and the City has the powe r, is obligated and hereby covenants to levy ad val orem taxes upon all property within the City subject to taxation by the City, without limitation of rate or amount, for the payment of the Bon ds and the interest the reon, in accordance with the Bond Law and Section 43632 of the of the Government Code of th e State of California. Amounts in the general fund of the City are not pledged to the payment of the Bonds. How ever, nothing herein limits t he ability of the City to provide for payment of the principal of and interest and premiu m (if a ny) on the Bonds f rom any sou rce of legally available funds of the City. An y amounts so advanced by the C ity from legally

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available fund s may be reimbursed fro m ad valorem property t axes subsequently collected under this Section 5.03.

SECTION 5.04. Books and Accounts; Financial Statement. The City will keep, or cause to be kep t, proper books of record and accounts, separate from all other records and accounts of the City in which c omplete and correct entries are made of all transactions relating to the Bonds. Such books of record and accounts shall at all times during business hours be subject to the inspection of the Pay ing Agent and the Owners of not less t han 10% in aggregate pr incipal amount of the Bonds then Outstan ding, or their representatives authorized in writing.

SECTION 5.05. Protection of Security and Rights of Bo nd Owners. The City will preserve and protect the security of the Bonds and the rig hts of the Bond Owners, and will warrant and defend their rights against all claims and demands of all persons. From and after the sale and delivery of any of the Bonds by the City, the City may not contest the authorization, issuance, sale or repayment of the Bonds.

SECTION 5.06. Tax Covenants.

(a) Private Activity Bond Limitation . The City shall assure that the proceeds of the Bonds are not so used as to cause the Bonds to satisfy the private business tests of Section 141(b) of the Tax Code or the private loan financing test of Section 141(c) of the Tax Code.

(b) Federal Guarantee Prohibition. The City shall not take any action or permit or suffer any action to be taken if the result of the same w ould be to cause any of the Bonds to be “federally gua ranteed” within the mea ning of Section 149(b) of the Tax Code.

(c) No Arbitrage. The City shall not take, or permit or suffer to be taken by the Paying Agent or otherwise, any acti on with respect to th e p roceeds of th e Bonds which, if such action had been reasonably expected t o have been taken, or had been deliberately and intentionally taken, on th e Closing Date would have caused the Bonds to be “arbitrage bonds” within the meaning of Section 148 of the Tax Code.

(d) Maintenance of Tax-Exemption. The City shall take all actions necessary to assure the exclusion of interest on the Bonds from the gross income of the Owners of the Bonds to the same extent as such interest is permitted to be excluded from gross income under the Tax Code as in effect on the Closing Date.

(e) Rebate of Excess Investment Earnings to United States . The City shall calculate or cause to be calculated excess investment ea rnings with respect to the Bonds which are required to be rebated to the U nited States of America under Section 148(f) of the Tax Code, and shall pay the full amount of such excess investment earnings to the United States of America in such amounts, at suc h times and in such manner as may be required under the Tax Code, if and to the extent such Section 148(f) is applicable to the Bonds. Such payments shall be made by the City from any source of legally available funds of the City. The City shall keep or cause to be kept, and retain or cause to be retained for a period of six y ears following the retirement of the Bonds, records of the determinations made under this subsection (e). In order to provide for the administration of this subsection (e), the City may provide for the employment of

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independent attorneys, accountants and consultants compensated on such reason able basis as the City may deem appropriate.

SECTION 5.07. Continuing Disclosure. The City he reby covenants and agrees that it will comply wi th and carry out all of the provision s of the Continuing D isclosure Certificate, which a City Represent ative is hereby authorized and d irected t o execute and deliver on the Closing Date. Notwithstanding any other provision of this Resolution, failure of t he Cit y to co mply wit h the Continuing Disclosure Certifica te will not be considered a def ault by the Ci ty h ereunder or under the Bonds; however, any Participating Underwriter (as such term is defined in the C ontinuing Disclosure Certificate) or any holder or beneficial owner of the Bonds may, take such actions as may be necessar y and appropria te to compe l performance, including seeking ma ndate or specific perfo rmance by court order. The City C ouncil hereby authorizes a City Representative to execute and deliver the final form of th e Continuing Disclosure Certificiate in the name and on behalf of the City.

SECTION 5.08. CDIAC Annual Reporting. The City hereby covenants and agrees that it will comply with the provisions of California G overnment Code S ection 8855 subdivision (k) with respect to annual reporting to the California Debt and Invest ment Advisory Commission. Said reportin g will occur at the times and include the types of information as set forth therein. Notwithstanding any other provision of this Resolution, failure of the City to comply with said rep orting does not constitute a de fault by the City hereunder or under the Bonds.

SECTION 5.09. Further Assurances . The City wi ll adopt, make, execute an d deliver any a nd all su ch further resol utions, instrume nts and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of t his Resolution, and for the better assurin g and co nfirming unto the Owners o f the Bonds of the rights and benefits provided in this Resolution.

ARTICLE VI

THE PAYING AGENT

SECTION 6.01. Appointment of Payi ng A gent. The Bank of New York Mellon Trust Company, N.A., is hereby appoint ed to act as Paying Agent for the Bonds. The Paying Agent un dertakes to p erform such duti es, and only such duties, as are specifically set forth i n this Resolution, and even duri ng the continuance of a n event of default with respect to the Bonds, no impli ed covenants or obligations shall be read into this Resolution against the Paying Agent. The Paying Agent shall signify its acceptance of the duti es and obli gations imposed upon it by this Re solution b y executing and delivering to the City a certificate to that effect.

The City may remove the Paying Agent initially appoin ted, and any successo r thereto, a nd may appoint a success or or successors ther eto, but an y such successor shall be a bank or trust co mpany doing business an d having an office in the State of California, having a combined capital (exc lusive of borro wed capital) and surplus of a t least $50, 000,000, and subject to supervision or examin ation by fe deral o r state authority. If such bank or trust company publishes a report of condition at least annually,

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under law or under the requirements of any supervis ing or e xamining authority ab ove referred to, then for the purpos es of this Section 6. 01 the combined capital and surplus of such bank or tru st company shall be dee med to be its combined capital and surplus as set forth in its most recent report of condition so published.

The Paying Agent may at any time resign by giving written notice to the City and the B ond Owners of such resignation. Upon receiving notice of su ch resignation, the City shall promptly appoint a s uccessor Paying Agent by a n instrument in writing. An y resignation or removal of the Paying Agent and app ointment of a success or Paying Agent be comes effectiv e upo n acceptance of ap pointment by the succes sor Paying Agent.

Any bank, national association, federal savings association, or trust company into which the Paying Agent may be merged or converted or wi th which it may be consolidated or any bank, national association, federal s avings association, or trust company resulting from an y merger, conversion or consolidation to which it shall be a party or any bank, national association, federal savings associat ion, or trust company to which the Payi ng Agent may s ell or transfer all or substantially all of it s corporate trust business, pro vided such bank, federal savings association, or trust company shall be eligible as described in this Section 6.01 shall be th e successor to such Payi ng Agent, without the executi on or f iling of any pap er or a ny further act, anything herein to the contrary notwithstanding.

SECTION 6.02. Paying Agent May Hold Bonds. The P aying Agent may become the Owner of any of the Bonds in its own or any other capa city with the s ame rights it would have if it were not Paying Agent.

SECTION 6.03. Liability of Paying A gent. The recitals of facts, covenants and agreements herein and in the Bonds contained shall be taken as statements, co venants and agreements of the City, and the Paying Agent assumes no responsibility for the correctness of the same, nor makes any representations as to the validity or sufficiency of this Resolution or of the Bonds, nor shall i ncur any responsibility in re spect thereof, other than as set forth in th is Resolution. The Paying Agent is n ot liable in connection with the p erformance of its du ties hereunder, except for its own negligence or wi llful default.

In the absence of bad fai th, the Paying Agent may conc lusively rely, as to the truth of the statem ents and the correctness of the opini ons expressed therein, upon certificates or opinions f urnished to the Paying Agent and conforming to the requirements of this Resolution.

The Paying Agent has no liability for any error of judgment made in good faith by a responsible officer of its corporate trust department in the absence of the negligence of the Paying Agent.

No provision of this Resoluti on requires the Pa ying Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of i ts rights or powers, if it has reasonable grounds for believing that re payment of such fu nds or adequate indemnity against such risk or liability is not reasonably assured to it.

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The P aying Agent m ay execu te any of the po wers hereunde r or per form any duties her eunder either directly or by or through agents or attorneys and t he Paying Agent is not responsible for an y misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.

SECTION 6.04. Notice to Paying Agent. The Paying Agent may rely and shall be protected in acting or refrain ing from acting up on an y n otice, resoluti on, request, consent, order, certificate, report, warrant, bond or other paper or document believed by it to b e genuine and to have been signed or presented by the proper party or proper parties. The Paying Agent may consult with counsel, who may be of counsel to the City, with regard to legal questions, and the opinion of such counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in good faith and in accordance therewith.

Whenever in th e administration of its dutie s und er this Resolution the P aying Agent deems it necessa ry or de sirable that a m atter be prov ed or established prior to taking or suff ering any action hereunder, such matter (unless oth er evidence in res pect thereof be herein specifically prescribed) may, in the absence of bad faith on the part of the Paying Agent, be deemed to be conclusively proved and established by a certificate of the City, and such certificate will be full warrant to the Paying Agen t for any action taken or suffered under the provisions of this Resolution upon the faith thereof, but in its discretion the Paying Agent may, in lieu thereof, accept other evidence of such matter or may require such additional evidence as to it may seem reasonable.

SECTION 6.05. Compensation; Indemnification. The City will pay to t he Paying Agent from time to time reasonable compensation for all services rendered under this Resolution, and also all reasonable expenses, charges, counsel fees and other disbursements, including those of their attorneys, agents and employees, incurred in and about the performance of their powers and duties under this Resolution. The City further agrees to indemnify the Paying Agent against any liabilities which it may incur in t he exercise and pe rformance of its powers and d uties hereunder which are not due to its negligence or bad faith.

ARTICLE VII

REMEDIES OF BOND OWNERS

SECTION 7.01. Remedies of Bo nd Owners. Upon the happening and continuation of any default by the City hereunder or under the Bonds, any Bond Owner has the right, for the equal benefit and protection of all Bond Owners similarly situated:

(a) by mandamus, suit, action or proceeding, to compel the City and its members, officers, agents or employees to perform each and every term, provision and covenant contained in this Resolution and in the Bonds, and to re quire the carrying out of any or all such covenants and agreements of the City and the fulfillment of all duties imposed upon it;

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(b) by suit, act ion or proceeding in eq uity, to enjoin any acts or t hings which are unlawful, or the violation o f any of the Bond Own ers’ rights; or

(c) by suit, action or proceeding in any court of com petent jurisdiction, to require the City and its me mbers and employees to account as if it and they were the trustees of an express trust.

SECTION 7.02. Remedies Not Exclusive. No remedy herein conferred upon the Owners of Bonds is e xclusive of any othe r remedy. Each remedy is cumulative and shall be in addition to every other remedy given hereunder or thereafter conferred on the Bond Owners.

ARTICLE VIII

AMENDMENT OF THIS RESOLUTION

SECTION 8.01. Amendments Effective Without Consent of the Owners. For any one or more of the following purposes and at any time or from time to time, the Ci ty Council may by Supplementa l Resol ution amend this Resolut ion in whole or in part, without the consent of any of the Bond Owners:

(a) to add to the covenants and a greements of the City in this Resolution, other covenants and agreements to be observed by the City which are not contrary to or inconsistent with this Resolution as theretofore in effect;

(b) to confirm, as further assurance, any pledge under, and to subject to any lien or pledge created or to be creat ed by, this Resoluti on, of any moneys, securities or funds, or to establish any additional funds or accounts to be held under this Resolution;

(c) to cure any ambi guity, supply any omi ssion, substitute any party or cure or correct any defect or inconsistent provision in this Resolution, which in any e vent does not m aterially adversely affect the interests of the Bond O wners, in the opinion of Bond Co unsel filed with the City; or

(d) if applicable, to make such additions, delet ions or modifications as may be necessary to assu re co mpliance with the appl icable provisions of the Tax C ode relating t o the reba te of excess investment earni ngs to the United States or o therwise as m ay b e necessary to assure that the interest on the Bond s remains excludable from gross income of the Own ers t hereof for federal income tax purposes, in the opini on of Bond Cou nsel filed with the City.

SECTION 8.02. Amendments Effe ctive With Consent to th e Ow ners. An y modification or amendment of this Resolution and of the rights and obligations of the City and of the Owners of the Bonds, in any particular, may be made by a S upplemental Resolution, with the writte n consent of the O wners of a majority in a ggregate principal

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amount of the B onds Outstanding at t he time such consent is given. Without the consent of the Owners of all aff ected Bonds, no such modificat ion or amendme nt may (a) change the maturity of the principal of any Bonds or any interest payable thereon, (b) reduce the principal amount of the Bon ds or the rate of interest thereon, (c) reduce th e percentage of Bonds the c onsent of the Owners of which is required to effect any such modification or amendment, (d) change any of the provisions in Section 7.01 relating to a default by the City hereunder or under the Bonds, (e) reduce the amount of mon eys pledged for the repayme nt of the Bonds. Without the consent of the Paying Agent, no such modification or amendment may chan ge or modify any of the rights or obl igations of the Paying Agent.

ARTICLE IX

MISCELLANEOUS

SECTION 9.01. Benefits of Resol ution Limited to Parties . Nothing in this Resolution, expressed or imp lied, is intended to give to any person other than the Ci ty, the Paying Agent and the Owners of the Bonds, any righ t, remedy, claim unde r or by reason of this Resolution. Any covenants , stipulations, promises or agreements in this Resolution contained by and on beh alf of the City shall be for the sol e and exclu sive benefit of the Owners of the Bonds.

SECTION 9.02. Defeasance.

(a) Discharge of Resolution. Bonds may be paid by the City, in whole or in part, in any of the following ways prov ided that the City also pays or causes to be paid any other sums payable hereunder by the City:

(i) by paying or causing to be paid the principal of and interest on such Bonds, as and when the same become due and payable;

(ii) by irrevocably depositing, in trust, at o r before m aturity, money or securities in the necessary amount to pay such Bonds as provided in Section 9.02(c); or

(iii) by delivering such Bonds to the Paying Agent for cancellation by it.

If the City pays al l Outstanding Bonds and also p ays or causes to be paid all other sums payable hereunder by the City, then and in that case, a t the election of the City (eviden ced by a certificate of a City Representative filed with the Paying Ag ent, signifying the intenti on of the City to discharge al l such indebte dness and this Resolution), and notwith standing that any Bonds have not been surr endered for payment, this Resolution, all taxes and oth er assets pledged under this Resolution and all covenants, agreements and ot her obligations of the City un der this Resol ution shall cease, terminate, become void and be completely discharged and satisfied, except only as provided in Se ction 9.02(b). In su ch event, upon request of the City, the Paying Agent shall cause an accounting for such period or periods as may be requested by the City to be p repared and fi led with the City and shall execute and de liver to the City all such instruments as may be necessary to evidence such discharge and satisfaction, and

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the Paying Agent shall pay over, transfer, assign or deliver to the City all moneys or securities or other property held by it under this Resolution which are not required for the payment of Bonds not theretofore surrendered for such payment.

(b) Discharge of Liability on Bonds . Upon the deposit, in trust, at or before maturity, of money or sec urities in the necessary amount to pay any Outstanding Bond Bonds as provided in Section 9.02(c), then all liability of the City in respect of such Bond will cease and be completely disch arged, except only that therea fter the Owner thereof is entitled only to payment of the principal of and interest on such Bond by the City, and the City remain s liable for such pay ment, but only out of such money or securities deposited with the Paying Age nt as aforesaid for such payme nt, provided f urther, however, that the provisions of Section 9.02(d) apply in all events.

The City may at any time surrender to the Paying Agent for cancellation by it any Bonds previously issued a nd de livered, which the Cit y acquires in any manner whatsoever, and suc h Bonds, u pon such surren der and cancel lation, will be de emed paid and retired.

(c) Deposit o f Money or Securities with Paying Agent . Whenever in this Resolution it is provided or per mitted that there be deposi ted with or held in trust by t he Paying Agen t money or securities in the necessary amount to pay any Bonds, the money or securities so to be deposited or held may include money or securities held by the Paying Agent in the funds and accounts established under this Resolution and must be:

(i) lawful money of the United States of America in an amount equal to the principal amount of such Bonds and all unpaid inte rest thereon to maturity; or

(ii) Federal Securities the principal of and interest on which when due, in the opinion of a cert ified public a ccountant delivered to th e City, will provide money sufficient to pay the princip al of and all unpaid interest to m aturity on the Bonds to be paid, as such principal and interest become due.

(d) Payment of Bonds After Discharge of Resolution . Notwithstan ding any provisions of th is Resolution, any mo neys held b y the Paying Agent in tr ust for the payment of the princip al of, or interest on , any Bonds and remaining unclaimed for two years after the principal of all of the Bonds has become due a nd payable, if such moneys were so held at such date, or two years after the date of deposit of such moneys if deposited after said date when all of t he Bonds became due and payable, shall, upon request of the City, be repaid to the City free from the trus ts created by this Resolution, and all liability of the Paying Agent with respect to such moneys shall thereupon cease.

Before the repayment of such moneys to the City as aforesaid, the Paying Agent may (at the cost of the City) first mail to the Owners of all Bonds which have not been paid at the addresses shown on the Regi stration Books a notice in such form as may be deemed appropriate by the Paying Agent, with respect to the Bonds so payable and not presented and with respect to the provisions relating to the repayment to the City of the moneys held for the payment thereof.

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SECTION 9.03. Execution of Docum ents and Proof of Own ership by Bond Owners. Any request, declaration or other instrument w hich this Resolution may require or permit to be executed by Bond Owners may be i n one or more i nstruments of similar tenor, and shall be executed by Bond Owners in person or by their at torneys appointed in writing.

Except as otherwise herein expressly provided, the fact and date of the execution by any Bond Owner or their attorney of such request, declaration or other instrument, or of such writing appointing such attorney, may be proved by the certificate of any notary public or other officer authorized to take acknowledgments of de eds to be recorded in the state in which he purports to act, that the person signing such request, declaration or other instrument or writing acknowledged to him the execution thereof, or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer.

Except as oth erwise herein exp ressly provi ded, the ownership o f r egistered Bonds and t he amount, maturity, number and da te of holding the sam e are proved by the Registration Books.

Any request, declaration or other instrument or writing of the Owner of any Bond binds all future Owners of such Bond in respect of anything done or suffered to be done by the City or the Paying Agent in good faith and in accordance therewith.

SECTION 9.04. Waiver of Personal Liability. No City Council member, officer, agent or employee of the City has an y individual or personal liability for the payment of the principal of or interest on the Bonds. Nothing herei n contained relieves any City Council member, off icer, agent or employee fro m the performance of any official duty provided by law.

SECTION 9.05. Destruction of Can celed Bonds . Whenever in this Reso lution provision is made for the s urrender to the City of any Bonds which have been paid or canceled und er th e provisions of this R esolution, a certificate of de struction duly executed by the Paying A gent constit utes the equivalent of the surr ender of such canceled Bonds and the City is en titled to rely upon a ny statement of fact contained in any certificate with respect to the destruction of any such Bonds therein referred to.

SECTION 9.06. Partial Invalidity. If any s ection, paragraph, sentence, clause or phrase of this Resolution is f or any reason held il legal or unenforceable, such holding will not aff ect the validity of the rem aining portions of this Resolution. The Cit y hereby declares that it would have adopted this Resolution and each and every o ther section, paragraph, sentence, clause or phrase her eof and authorized the issue of the Bonds pursuant hereto irrespective of th e fact that any one or m ore se ctions, paragr aphs, sentences, clauses, or phrases of this R esolution m ay be held illegal, inva lid or unenforceable.

SECTION 9.07. Execution of Documents. Each City Representative, and any and all other officers of the City, are each authorized and directed in the name and on behalf of the City to make any and all certificates, requisitions, agreements, notices, consents, warrants and other documents , which they or any of them might deem necessary or appropriate in order to consummate the lawful issuance, sale and delivery of the Bonds, including an agre ement for paying age nt services. Whenever i n this Resolu tion any officer of t he City is authorized to execute or countersign any document or take a ny

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action, such execution, countersigning or action may be taken on beh alf of s uch officer by any person designated by such offi cer to act on his or her behalf in th e case such officer shall be absent or unavailable.

SECTION 9.08. Effective Date of Resol ution. This Resolution bec omes effective upon the date of its passage and adoption.

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* * * * * * * * * * * *

The foregoing resolution was adopted by the City Council of Campbell, California on May 17, 2022, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Paul Resnikoff
Mayor
ATTEST:

Dusty Christopherson
City Clerk

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APPENDIX A

FORM OF BOND

REGISTERED BOND NO. R-___ ***$***

CITY OF CAMPBELL
ELECTION OF 2018 GENERAL OBLIGATION BOND, SERIES 2022

INTEREST RATE: MATURITY DATE: DATED DATE: CUSIP
___% per annum September 1, 20__ ________, 2022 _____

REGISTERED OWNER: CEDE & CO.

PRINCIPAL AMOUNT:

The CITY OF CAMPBELL, a general law city and muni cipal corporation duly organized and existing unde r the Constitution and l aws of t he State of California ( the “City”), for value receive d, hereb y promises to p ay to the Registered Owner named above, or registered assigns, the Principal Amount set forth abo ve on the Maturity Date set forth above, together with interest thereon at the Int erest Rate set forth abo ve, calculated on a 30/360 day basis, until the Princ ipal Amount hereof is paid or provided for, such interest to be paid on March 1 and September 1 o f each year, commencing September 1, 2022 (the “Interest Payment Dates”). This Bond will bear interest from the Interest Payment Date n ext preceding the date of authentication hereof, unless (a) it is authenticated as of a business day following the 15th da y of the month imm ediately preceding any Interest Payment Date and on or b efore such Interest Payment D ate, in which event it shall be ar inter est from such I nterest Payment Date, o r (b) it is authenticated on or before August 15, 2022, in which event it shall bear interest from the Dated Date set forth above.

Principal, interest and redemption premium (i f any) are payable in lawful mone y of the United States of America to the person in whose name this Bond is registered (the “Registered Owner”) on the Bond registration books mai ntained by the Paying Age nt, initially The Bank of New York Mellon Trust Company, N .A.. Principal hereof and a ny redemption premium hereon are payable upon presentation and surrender of this Bond at the principal corporate trust office of th e Paying Agent. Interest hereon is payable by check mail ed by the Pa ying Agent on each Interest Payment Date to the Registered Owner of this Bond b y first-class mail at the address appearing on the Bond registration books at th e close of business on the 1 5th day of the cal endar month next precedi ng such Interest Payment Date (the “Record Date”); provided, however, that at the w ritten request of the r egistered owner of Bond s in an aggregat e principal amoun t of at least $1,000,000, which written request is o n file with the Pa ying Agent prior to any Record Date, interest on such Bonds shall be paid on ea ch succeeding Intere st Payment Date

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by wire transfe r in immediately available funds to suc h account of a fi nancial institution within the United States of America as shall be specified in such written request.

This Bond is one of a series of $30,000,000 aggregate principal amount of bonds (collectively, t he “ Bonds”) issued for the purpose of rais ing money to finance the acquisition and improvement of City facilities, and to pay all necessary legal, f inancial, engineering and contingent costs in connection therewith. The Bonds have been issued under authority of and under the laws of the State of California, and th e requisite two - thirds vote of the electors of the City cast at an election held on November 6, 2018, upon the q uestion of issuing bonds in the aggr egate p rincipal amount of $ 50,000,000, and under a resolution of the City Council of the C ity adopted on May 17, 2022 (the “Bond Resolution”). The Bonds are payable as to both principal and interest from the proceeds of the le vy of ad valorem taxes on all property subjec t to such ta xes in t he City, whi ch taxes are unlimited as to rate or amount.

The principal of and interest and redemption premium, if any, on this Bond do not constitute a debt of the County, the State of California, or any of its political subdivisions other than the City, or any of the officers, agents and employees thereof, and neither the County, the State of Cal ifornia, any of its political subdivisions oth er than t he City, nor any of the officers, agents a nd employees thereof shall be liable hereon. In no event shall t he principal of and interest and redem ption premium, if any, on this Bond be payable out of an y funds or properti es of the City other than a d valorem taxes levied upon all taxable property in the City.

The Bonds are issuable only as fully registered bonds in the deno minations of $5,000 or any integral multiple thereof. This B ond is exchangeable and transferable for bonds of other authorized denominations a t the princip al corpor ate trust offi ce of the Paying Agen t, by t he Registered O wner or by a pers on l egally empowered to do so, upon presentation and surrender hereof to the Paying Agent, together with a request for exchange or an assignment signed by the R egistered Own er or by a person legal ly empowered to do so, in a form satisfactory to the Paying Agent, all subject to the terms, limitations and con ditions provided in the Bo nd Resolution. Any t ax or governme ntal charges shall be paid by th e transferor. The City and the Paying Agent may de em and treat the Regi stered Owner as the ab solute owner of t his Bond for the purpose of receiving payment of or on account of principal or interest and for all other purposes, and neither the City nor the Paying Agent shall be affected by any notice to the contrary.

The Bonds maturi ng on or before September 1 , ____, are not subjec t to redemption prior to t heir respective stated maturities. The Bonds maturing o n or after September 1, ____, are subject to redemption prior to maturity, at the option of the C ity, in whole or in part amo ng maturities on such basis as designated by the City and by lot within a maturity, from any available source of funds, on September 1, ____, and on any date thereafter, at a redemption price equal to 100% of the principal amount of Bonds to be redeeme d to gether with accru ed in terest thereon to the date fixed for redemption, without premium.

The Bonds maturing on September 1, 20__, September 1, 20__ and Septembe r 1, 20__ (the “Term Bonds”) are subject to redemption prior to their stated maturity date, without a redemption premium, in part by lot, from ma ndatory sinking fund payments on each September 1, on and after September 1, 20__ in the principal amounts as set forth in the following tables:

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$_________ Term Bond Due September 1, 20__

Payment Date
(September 1)
Payment
Amount

$_________ Term Bond Due September 1, 20__

Payment Date
(September 1)
Payment
Amount

$_________ Term Bond Due September 1, 20__

Payment Date
(September 1)
Payment
Amount

The Paying Agent sh all give notic e o f the redemption of the Bonds at the expense of the City. Such notice shall specify: (a) that the Bonds or a de signated portion thereof are to be redeemed, (b) the numbers and CUSIP numbe rs of the Bonds to be r edeemed, (c) the date of no tice and the date of redemption, (d) the place or places where the redemption will be made, and (e) descriptive information regarding the Bonds including the dated date, interest rate and stated maturity date. Such notice shall further state that on the specified date ther e shall become due and payabl e upon each Bond to be redeemed, the portion of the principal amount of such Bond to be redeemed, together with interest accrued to said date, the redempti on p remium, if any, and tha t from and a fter such date i nterest with resp ect thereto shall c ease to accru e and be payable.

Notice of any redempti on of Bonds shall be maile d by first c lass mail, postage prepaid, at least 20 days but not more than 60 da ys prior to the date fixed for redemption, to the respective Owners of any Bonds designated for re demption, at their addresses appearing on the bon d registration books maintain ed by t he Paying Agent; but such mailing shall not be a condi tion precedent to such redem ption and failure to mail or to receive any such no tice shall not a ffect the validity of the proceedings for the redemption of such Bonds or the cessation of accrual of interest thereon from and after the redemption date.

The City may provide conditional notices of optional red emption, and the City is entitled to rescind any notice of optional redemption of the Bonds by written notice to the

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Paying Agent on or prior to the date fixed for redemption, and the Paying Agent shall mail notice of such rescission of redemption in the same manner as the original notice of redemption. Any notice o f redemption shall be cancelled and annulled if for any reason funds will not be or are not availa ble on the date fixed for redemption. The City and the Paying Agent have no liability to the Owners or any other party related to or arising from such rescission.

Neither the City nor the Paying Agent will be required: (a) to issue or transfer any Bond during a period beginning with the opening of bu siness on the 15 th calendar day next preceding either any Interest Payment Date or any date of selection of any Bond to be redeemed and ending with the close of business on the Interest P ayment Date or a day on which the applicable notice of redemption is given, or (b) to transfer an y Bond which has been selected or called for redemption in whole or in part.

Reference is made to the Bond Resolution for a more complete description of the provisions, among others , with respect to the nature and extent of th e security for the Bonds, the rights, duties and obl igations of the City, th e Pa ying Agent and th e Registered Owners, and the terms and conditions upon which the Bonds are issued and secured. The owner of th is Bond assents, by acceptance hereof, to all of the provisions of the Bond Resolution.

It is certi fied, reci ted and declared t hat al l a cts and conditions requ ired by the Constitution and laws of the State of California to exist, to be performed or to have been met precedent to and in the issuing of the Bonds in order to make t hem legal, valid and binding general obligations of th e City, have been performed and have been met in regular and du e form as re quired by law; that payment in full for the Bonds has been received; that no statutory or constitutional limitati on on indebtednes s or taxation has been exceeded in issuing the Bonds; and that due provision has been made for levyi ng and collecting ad valor em property taxes on all of the taxabl e property within the City in an amount suf ficient to pay pri ncipal and interest wh en due, a nd for levying and collecting such taxes.

This Bond shall not be va lid or obligat ory for any purpos e an d s hall not be entitled to any security or ben efit under the Bon d R esolution until the Certificate of Authentication below has been manually signed by the Paying Agent.

Unless this Bond is presented by an authorized representative of The Depository Trust Company (“DTC”), to t he City or the Payi ng Agent for registrat ion o f transfer, exchange, or payment, and any Bond issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized repr esentative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFE R, PLEDGE, OR OTH ER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

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IN WITNESS WHEREOF , the City of Campbell has caused this Bond to be executed by the facsimi le signature of its Mayor and attested by the facsimile signature of its City Clerk, all as of the date stated above.

CITY OF CAMPBELL

By
Mayor
Attest:

City Clerk

CERTIFICATE OF AUTHENTICATION

This Bond is one of the Bonds described in the Bond Resoluti on refe rred to herein.

Date of Authentication: ________, 2022

THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A.,
as Paying Agent

By
Authorized Signatory

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ASSIGNMENT

For value received, the undersigned do(es) hereby sell, assign and transfer unto

(Name, Address and Tax Identification or Social Security Number of Assignee)

the within B ond and do(es ) hereb y ir revocably c onstitute a nd appoint ______________________
attorney, to transf er the sa me on the registration books of the Bond Registrar, with full power of substitution in the premises.

Dated: ______________

Signature Guaranteed:

Note: Signa ture(s) must be guaranteed by an
eligible guarantor institution.

Note: The signat ure(s) on this Assignment must
correspond with the name(s) as written on the face
of the wit hin Bond in every particular with out
alteration or enlargement or any chang e
whatsoever.

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APPENDIX B

REQUIRED DISCLOSURES PURSUANT TO
GOVERNMENT CODE SECTION 5852.1

1. Estimated True Interest Cost of the Bonds: 3.918127%

2. Estimated f inance charge of the Bonds, being the sum of all f ees and charges p aid to thir d parties, in the amount of approximately $310,000. Such amount consists of costs of issuing the Bonds in the amount of approximately $205,000, together with estimated underwriter’s compensation in the amount of $105,000.

3. Estimated proceeds of the Bonds e xpected to be received by the City for deposit t o the Project Fund, net of pro ceeds for Cos ts of Issuance in (2 ) above to paid, capitalized interest and reserves (if any) from the principal amount of the Bonds: $30,000,000.

4. Estimated Total Payment Amo unt for the Bonds, being the sum of all debt serv ice to be paid on the Bonds to final maturity:
$57,782,000.

*All amounts and percentag es are estimates, and are made in good faith by the City based on information available as of the date of adoption of this Resolution. Estimates include certain assumptions regarding federally taxable interest rates available in the bond market at the time of pricing the Bonds.

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$________ CITY OF CAMPBELL Election of 2018 General Obligation Bonds, Series 2022 CONTRACT OF PURCHASE _________, 2022 City Council City of Campbell 70 N. First Street Campbell, California 95008 Ladies and Gentlemen: The undersigned, Stifel, Nicolaus & Company, Incorporated, as underwriter (the “Underwriter”), offers to enter into this Contract of Purchase (the “Contract of Purchase”) with the City of Campbell (the “City”), which, upon the City’s acceptance hereof, will be binding upon the City and the Underwriter. This offer is made subject to the written acceptance of this Contract of Purchase by the City and delivery of such acceptance to the Underwriter at or prior to 11:59 P.M., Pacific Time, on the date hereof. Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Official Statement (as defined herein) or, if not defined in the Official Statement, in the Resolution (as defined herein). The City acknowledges and agrees that (i) the purchase and sale of the Bonds (as defined herein) pursuant to this Contract of Purchase is an arm’s-length commercial transaction between the City and the Underwriter, (ii) in connection with such transaction, the Underwriter is acting solely as a principal and not as an agent or fiduciary of the City, (iii) the Underwriter has not assumed a fiduciary responsibility in favor of the City with respect to (x) the offering of the Bonds or the process leading thereto (whether or not the Underwriter has advised or is currently advising the City on other matters) or (y) any other obligation to the City except the obligations expressly set forth in this Contract of Purchase, and (iv) the City has consulted with its own legal, accounting, tax, financial, and other professional advisors to the extent it has deemed appropriate in connection with the offering of the Bonds. The City acknowledges that it has previously provided the Underwriter with an acknowledgement of receipt of the required disclosure under Rule G-17 of the Municipal Securities Rulemaking Board (the “MSRB”). 1. Purchase and Sale of the Bonds. Upon the terms and conditions and in reliance upon the representations, warranties and agreements herein set forth, the Underwriter hereby agrees to purchase from the City for reoffering to the public, and the City hereby agrees to sell to the Underwriter for such purpose, all (but not less than all) of $_________ aggregate principal amount of the City’s Election of 2018 General Obligation Bonds, Series 2022 (the “Bonds”). The Bonds shall accrue interest at the rates, shall mature in the years and shall be subject to redemption as shown on Exhibit A hereto, which is incorporated herein by this reference. The Bonds

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shall be dated the date of delivery thereof (the “Date of Delivery”) and shall bear interest from such date, payable semiannually on each March 1 and September 1 commencing September 1, 2022. The Underwriter shall purchase the Bonds at a price of $_________ (which is equal to the principal amount of the Bonds of $________. plus [net] original issue premium of $________less an Underwriter’s discount of $________, and less costs of issuance of $_________ to be used by the Underwriter to pay costs of issuance for the Bonds, as provided in Section 12 hereof). 2. The Bonds. The Bonds shall otherwise be as described in the Official Statement, and shall be issued and secured pursuant to the provisions of the Resolution of the City adopted on May 17, 2022 (the “Resolution”), this Contract of Purchase, and Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code (the “Act”). The Bonds shall be executed and delivered under and in accordance with the provisions of this Contract of Purchase and the Resolution. The Bonds shall bear CUSIP numbers; be in fully registered book-entry form, registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). The Bonds shall initially be issued in authorized denominations of five thousand dollars ($5,000) principal amount, or any integral multiple thereof. 3. Use of Documents. The City hereby authorizes the Underwriter to use, in connection with the offer and sale of the Bonds, the Continuing Disclosure Undertaking (as defined herein), this Contract of Purchase, the Preliminary Official Statement (as defined herein), the Official Statement, the Resolution and all information contained herein and therein and all of the documents, certificates or statements furnished by the City to the Underwriter in connection with the transactions contemplated by this Contract of Purchase. 4. Public Offering of Bonds; Establishment of Issue Price. The Underwriter agrees to make a bona fide public offering of all the Bonds at the initial public offering prices or yields to be set forth on the inside cover of the Official Statement and Exhibit A hereto. (a) The Underwriter agrees to assist the City in establishing the issue price of the Bonds and shall execute and deliver to the City at Closing an “issue price” or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit B, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the City and Jones Hall, A Professional Law Corporation (“Bond Counsel”), to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds. All actions to be taken by the City under this section to establish the issue price of the Bonds may be taken on behalf of the City by NHA Advisors, LLC, the City’s municipal advisor (the “Municipal Advisor”) and any notice or report to be provided to the City may be provided to the Municipal Advisor. (b) Except as otherwise set forth in Exhibit A attached hereto, the City will treat the first price at which 10% of each maturity of the Bonds (the “10% test”) is sold to the public as the issue price of that maturity. At or promptly after the execution of this Contract of Purchase, the Underwriter shall report to the City the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the City the prices at which it sells the unsold Bonds of that maturity to the public. That reporting obligation shall

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continue, whether or not the Closing Date has occurred, until either (i) the Underwriter has sold all Bonds of that maturity or (ii) the 10% test has been satisfied as to the Bonds of that maturity, provided that, the Underwriter’s reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the City or Bond Counsel. For purposes of this Section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds. (c) The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Contract of Purchase at the offering price or prices (the “initial offering price”), or at the corresponding yield or yields, set forth in Exhibit A attached hereto, except as otherwise set forth therein. Exhibit A also sets forth, as of the date of this Contract of Purchase, the maturities, if any, of the Bonds for which the 10% test has not been satisfied and for which the City and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the City to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-offering-price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following: (1) the close of the fifth (5th) business day after the sale date; or (2) the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. The Underwriter will advise the City promptly after the close of the fifth business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public. (d) The Underwriter confirms that: (1) any selling group agreement and any retail or other third-party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker-dealer that is a party to such third-party distribution agreement, as applicable: (A) (i) to (1) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter, and (ii) to comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter,

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(B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the dealer or broker-dealer, the Underwriter shall assume that each order submitted by the dealer or broker-dealer is a sale to the public. (2) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a retail or other third-party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker-dealer that is a party to such retail or other third-party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold-the-offering-price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires. (e) The City acknowledges that, in making the representations set forth in this section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a retail or other third-party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker-dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bonds, as set forth in the retail or other third-party distribution agreement and the related pricing wires. The City further acknowledges that the Underwriter shall not be liable for the failure of any dealer who is a member of a selling group, or of any broker-dealer that is a party to a retail or other third-party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable to the Bond. (f) The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section. Further, for purposes of this section:

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(1) “public” means any person other than an underwriter or a related party, (2) “underwriter” means (A) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the public), (3) a purchaser of any of the Bonds is a “related party” to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (i) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (ii) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (iii) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other), and (4) “sale date” means the date of execution of this Contract of Purchase by all parties. 5. Review of Official Statement. The Underwriter hereby represents that it has received and reviewed the Preliminary Official Statement with respect to the Bonds, dated ________, 2022 (the “Preliminary Official Statement”). The City represents that it has duly authorized and prepared the Preliminary Official Statement for use by the Underwriter in connection with the sale of the Bonds, and that it has deemed the Preliminary Official Statement to be final as of its date, except for either revision or addition of the offering price(s), interest rate(s), yield(s) to maturity, selling compensation, aggregate principal amount, principal amount per maturity, redemption provisions, delivery date, rating(s) and other terms of the Bonds which depend upon the foregoing as provided in and pursuant to Rule l5c2-12 of the Securities and Exchange Commission (the “SEC”) promulgated under the Securities Exchange Act of 1934, as amended (the “Rule”). The Underwriter agrees that prior to the time the Official Statement relating to the Bonds is available, the Underwriter will send to any potential purchaser of the Bonds, upon the request of such potential purchaser, a copy of the most recent Preliminary Official Statement. Such Preliminary Official Statement shall be sent by first class mail or electronic distribution (or other equally prompt means) not later than the first business day following the date upon which each such request is received. The Underwriter agrees to file the Official Statement with the MSRB through its Electronic Municipal Market Access system within one business day after receipt thereof from the City, but in no event later than the Closing.

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6. Closing. At 9:00 A.M., Pacific Time, on ________, 2022 or at such other time or on such other date as shall have been mutually agreed upon by the City and the Underwriter (the “Closing”), the City will deliver or cause to be delivered to the Underwriter, through the facilities of DTC in New York, New York, or at such other place as the City and the Underwriter may mutually agree upon, the Bonds in fully registered book-entry form, duly executed and registered in the name of Cede & Co., as nominee of DTC, and at the offices of Bond Counsel in San Francisco, California, the other documents hereinafter mentioned; and the Underwriter will accept such delivery and pay the purchase price set forth in Section 1 hereof in immediately available funds by wire transfer to the account or accounts designated by the City. 7. Representations, Warranties and Agreements of the City. The City hereby represents, warrants and agrees with the Underwriter that: (a) Due Organization. The City is a general law city duly organized and validly existing under the laws of the State of California (the “State”), with the power to issue the Bonds pursuant to the Act. (b) Due Authorization. (i) At or prior to the Closing, the City will have taken all action required to be taken by it to authorize the issuance and delivery of the Bonds; (ii) the City has full legal right, power, and authority to enter into this Contract of Purchase and the Continuing Disclosure Undertaking, to adopt the Resolution, to perform its obligations under each such document or instrument, to approve the Official Statement, and to carry out and effectuate the transactions contemplated by this Contract of Purchase and the Resolution; (iii) the execution and delivery or adoption of, and the performance by the City of the obligations contained in, the Bonds, the Resolution, the Continuing Disclosure Undertaking and this Contract of Purchase have been duly authorized and such authorization shall be in full force and effect at the time of the Closing; (iv) this Contract of Purchase, assuming the due authorization, execution and delivery by the other party thereto, and the Continuing Disclosure Undertaking, constitute valid and legally binding obligations of the City, enforceable in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and except as their enforcement may be subject to the application of equitable principles or the exercise of judicial discretion in appropriate cases if equitable remedies are sought, and by the limitations on legal remedies against public agencies in the State; and (v) the City has duly authorized the consummation by it of all transactions contemplated by this Contract of Purchase. (c) Consents. No consent, approval, authorization, order, filing, registration, qualification, election or referendum, of or by any court or governmental agency or public body whatsoever is required in connection with the issuance, delivery or sale of the Bonds, the execution and delivery of this Contract of Purchase and the Continuing Disclosure Undertaking, the adoption of the Resolution, or the consummation of the other transactions effected or contemplated herein or hereby, which have not been taken or obtained, except for such actions as may be necessary to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations of such states and jurisdictions of the United States as the Underwriter may reasonably request, or which have not been taken or obtained; provided, however, that the City shall not be required to subject itself to service of process in any jurisdiction in which it is not so subject as of the date hereof.

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(d) Internal Revenue Code. The City has complied with the requirements of the Internal Revenue Code of 1986, as amended, with respect to the Bonds. (e) No Conflicts. To the best knowledge of the City, the issuance of the Bonds, and the execution, delivery and performance of this Contract of Purchase, the Continuing Disclosure Undertaking, the Resolution and the Bonds, and the compliance with the provisions hereof and thereof do not conflict with or constitute on the part of the City a violation of or default under the State Constitution or any existing law, charter, ordinance, regulation, decree, order or resolution and do not conflict with or result in a violation or breach of, or constitute a default under, any agreement, indenture, mortgage, lease or other instrument to which the City is a party or by which it is bound or to which it is subject. (f) Litigation. As of the time of acceptance hereof, no action, suit, proceeding, hearing or investigation is pending or, to the best knowledge of the City, threatened against the City: (i) in any way affecting the existence of the City or in any way challenging the respective powers of the several offices of the City or of the titles of the officials of the City to such offices; or (ii) seeking to restrain or enjoin the sale, issuance or delivery of any of the Bonds, the application of the proceeds of the sale of the Bonds, the collection or levy of ad valorem property taxes contemplated by the Resolution, and the application thereof to pay the principal of and interest on the Bonds, or in any way contesting or affecting the validity or enforceability of the Bonds, this Contract of Purchase, the Continuing Disclosure Undertaking or the Resolution or contesting the powers of the City or its authority with respect to the Bonds, the Resolution, this Contract of Purchase, or the Continuing Disclosure Undertaking; or (iii) in which a final adverse decision could (a) materially adversely affect the operations or financial condition of the City or the consummation of the transactions contemplated by this Contract of Purchase, the Continuing Disclosure Undertaking or the Resolution, (b) declare this Contract of Purchase to be invalid or unenforceable in whole or in material part, or (c) adversely affect the exclusion of the interest paid on the Bonds from gross income for federal income tax purposes and the exemption of such interest on the Bonds from State personal income taxation. (g) No Other Debt. Between the date hereof and the Closing, without the prior written consent of the Underwriter, neither the City, nor any other person or entity on behalf of the City, will have issued in the name and on behalf of the City, any bonds, notes or other obligations for borrowed money except for such borrowings as may be described in or contemplated by the Official Statement. (h) Certificates. Any certificates signed by any officer of the City and delivered to the Underwriter shall be deemed a representation and warranty by the City to the Underwriter, but not by the person signing the same, as to the statements made therein.

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(i) Continuing Disclosure. In accordance with the requirements of the Rule and pursuant to the Resolution, at or prior to the Closing, the City shall have duly authorized, executed and delivered a continuing disclosure certificate with respect to the Bonds (the “Continuing Disclosure Undertaking”) on behalf of each obligated person for which financial and/or operating data is presented in the Official Statement. The Continuing Disclosure Undertaking shall be substantially in the form attached to the Official Statement as Appendix D. Except as otherwise disclosed in the Official Statement, the City has not, within the past five years, failed to comply in a material respect with any of its previous undertakings pursuant to the Rule to provide annual reports or notice of certain listed events. (j) Official Statement Accurate and Complete. The Preliminary Official Statement, as of the date thereof, did not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. As of the date hereof and as of the date of Closing, the Official Statement does not and will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. The City makes no representation or warranty as to the information contained in or omitted from the Preliminary Official Statement or the Official Statement in reliance upon and in conformity with information furnished in writing to the City by or on behalf of the Underwriter through a representative of the Underwriter specifically for inclusion therein. (k) Levy of Tax. The City hereby agrees to take any and all actions as may be lawfully required by Santa Clara County (the “County”) or otherwise necessary in order to arrange for the levy and collection of ad valorem property taxes, payment of the Bonds, and the deposit and investment of Bond proceeds. (l) No Material Adverse Change. The financial statements of, and other financial information regarding, the City in the Official Statement fairly present the financial position and results of the City as of the dates and for the periods therein set forth. Prior to the Closing, there will be no adverse change of a material nature in such financial position, results of operations or condition, financial or otherwise, of the City. 8. Covenants of the City. The City covenants and agrees with the Underwriter that: (a) Securities Laws. The City will furnish such information, execute such instruments, and take such other action in cooperation with the Underwriter if and as the Underwriter may reasonably request in order to qualify the Bonds for offer and sale under the Blue Sky or other securities laws and regulations or such states and jurisdictions, provided, however, that the City shall not be required to consent to service of process in any jurisdiction in which it is not so subject as of the date hereof; (b) Application of Proceeds. The City will apply the proceeds from the sale of the Bonds for the purposes specified in the Resolution; (c) Official Statement. The City hereby agrees to deliver or cause to be delivered to the Underwriter, not later than the seventh (7th) business day following the date this Contract of Purchase is signed, copies of a final Official Statement substantially in the form

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of the Preliminary Official Statement, with only such changes therein as shall have been accepted by the Underwriter and the City (such Official Statement with such changes, if any, and including the cover page, inside front cover page, and all appendices, exhibits, maps, reports and statements included therein or attached thereto being herein called the “Official Statement”) in such quantities as may be requested by the Underwriter not later than seven (7) business days following the date this Contract of Purchase is signed, in order to permit the Underwriter to comply with paragraph (b)(4) of the Rule and with the rules of the MSRB. The City hereby authorizes the Underwriter to use and distribute the Official Statement in connection with the offering and sale of the Bonds; (d) Subsequent Events. The City hereby agrees to notify the Underwriter of any event or occurrence that may affect the accuracy or completeness of any information set forth in the Official Statement relating to the City until the date which is twenty-five (25) days following the End of the Underwriting Period; (e) References. References herein to the Preliminary Official Statement and the Official Statement include the cover, inside front cover page and all appendices, exhibits, maps, reports and statements included therein or attached thereto; and (f) Amendments to Official Statement. During the period ending on the 25th day after the End of the Underwriting Period (or such other period as may be agreed to by the City and the Underwriter), the City (i) shall not supplement or amend the Official Statement or cause the Official Statement to be supplemented or amended without the prior written consent of the Underwriter and (ii) shall notify the Underwriter promptly if any event shall occur, or information comes to the attention of the City, that is reasonably likely to cause the Official Statement (whether or not previously supplemented or amended) to contain any untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. If, in the opinion of the Underwriter, such event requires the preparation and distribution of a supplement or amendment to the Official Statement, the City shall prepare and furnish to the Underwriter, at the City’s expense, such number of copies of the supplement or amendment to the Official Statement, in form and substance mutually agreed upon by the City and the Underwriter, as the Underwriter may reasonably request. If such notification shall be given subsequent to the Closing, the City also shall furnish, or cause to be furnished, at its own expense, such additional legal opinions, certificates, instruments and other documents as the Underwriter may reasonably deem necessary to evidence the truth and accuracy of any such supplement or amendment to the Official Statement. For purposes of this Contract of Purchase, the “End of the Underwriting Period” is used as defined in the Rule and shall occur on the later of (A) the date of Closing or (B) when the Underwriter no longer retains an unsold balance of the Bonds; unless otherwise advised in writing by the Underwriter on or prior to the date of Closing, or otherwise agreed to by the City and the Underwriter, the City may assume that the End of the Underwriting Period is the date of Closing. 9. Representations, Warranties and Agreements of the Underwriter. The Underwriter represents to and agrees with the City that, as of the date hereof and as of the date of the Closing:

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(a) The Underwriter is duly authorized to execute this Contract of Purchase and to take any action under this Contract of Purchase required to be taken by it. (b) The Underwriter is in compliance with MSRB Rule G-37 with respect to the City, and is not prohibited thereby from acting as underwriter with respect to securities of the City. (c) The Underwriter has, and has had, no financial advisory relationship, as that term is defined in Government Code Section 53590(c) or MSRB Rule G-23, with the City with respect to the Bonds, and no investment firm controlling, controlled by or under common control with the Underwriter has or has had any such financial advisory relationship. 10. Conditions to Closing. The Underwriter has entered into this Contract of Purchase in reliance upon the representations and warranties of the City contained herein and the performance by the City of its obligations hereunder, both as of the date hereof and as of the date of Closing. The Underwriter’s obligations under this Contract of Purchase are, and shall be subject, at the option of the Underwriter, to the following further conditions at the Closing: (a) Representations True. The representations and warranties of the City contained herein shall be true, complete and correct in all material respects at the date hereof and at and as of the Closing, as if made at and as of the Closing, and the statements made in all certificates and other documents delivered to the Underwriter at the Closing pursuant hereto shall be true, complete and correct in all material respects on the date of the Closing; and the City shall be in compliance with each of the agreements made by it in this Contract of Purchase; (b) Obligations Performed. At the time of the Closing, (i) the Official Statement, this Contract of Purchase, the Continuing Disclosure Undertaking and the Resolution shall be in full force and effect and shall not have been amended, modified or supplemented except as may have been agreed to in writing by the Underwriter; (ii) all actions under the Act which, in the opinion of Bond Counsel, shall be necessary in connection with the transactions contemplated hereby, shall have been duly taken and shall be in full force and effect; and (iii) the City shall perform or have performed all of their obligations required under or specified in the Resolution, this Contract of Purchase or the Official Statement to be performed at or prior to the Closing; (c) Adverse Rulings. No decision, ruling or finding shall have been entered by any court or governmental authority since the date of this Contract of Purchase (and not reversed on appeal or otherwise set aside), or shall be pending, or, to the best knowledge of the City, threatened, which has any of the effects described in Section 7(f) hereof or contesting in any way the completeness or accuracy of the Official Statement; (d) Banking Moratorium. There has not been declaration of a general banking moratorium by federal, New York or State authorities, or a general suspension of trading on any national securities exchange; (e) Exchange Trading Restrictions. There has been no imposition by the New York Stock Exchange, other national securities exchange, or any governmental authority, of

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any material restrictions not now in force with respect to the Bonds, or obligations of the general character of the Bonds, or securities generally, or the material increase of any such restrictions now in force, including those relating to the extension of credit by, or the charge to the net capital requirements of, the Underwriter; (f) No General Obligation Bond Offering Invalidation. No order, decree or injunction of any court of competent jurisdiction, or order, filing, regulation or official statement by the SEC, or any other governmental agency having jurisdiction over the subject matter thereof, issued or made to the effect that the issuance, offering or sale of obligations of the general character of the Bonds, or the issuance, offering or sale of the Bonds, as contemplated hereby or by the Official Statement, is or would be in violation of the federal securities laws, as amended and then in effect; (g) Marketability. Between the date hereof and the Closing, the market price or marketability or the ability of the Underwriter to enforce contracts for the sale of the Bonds, shall not have been materially adversely affected, in the reasonable judgment of the Underwriter, by reason of any of the following: (1) legislation enacted by the Congress of the United States, or passed by either House of Congress, or favorably reported for passage to either House of Congress by any Committee of such House to which such legislation has been referred for consideration, or introduced in the Congress or recommended for passage by the President of the United States, or a decision rendered by a court established under Article III of the Constitution of the United States or by the United States Tax Court, with the purpose or effect, directly or indirectly, of causing inclusion in gross income for purposes of federal income taxation of the interest received by the owners of the Bonds, or an order, ruling, regulation (final, temporary or proposed) or official statement issued or made: (i) by or on behalf of the United States Treasury Department, or by or on behalf of the Internal Revenue Service, with the purpose or effect, directly or indirectly, of causing inclusion in gross income for purposes of federal income taxation of the interest received by the owners of the Bonds; or (ii) by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction over the subject matter thereof, to the effect that the Bonds, or obligations of the general character of the Bonds, including any and all underlying arrangements, are not exempt from registration under the Securities Act of 1933, as amended; (2) legislation enacted by the State legislature or a decision rendered by a State Court, or a ruling, order, or regulation (final or temporary) made by a State authority, which would have the effect of changing, directly or indirectly, the State tax consequences of interest on obligations of the general character of the Bonds in the hands of the holders thereof; (3) there shall have occurred or any notice shall have been given of any intended review, downgrading, suspension, withdrawal, or negative change in credit

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watch status to any rating of the City’s outstanding indebtedness (without regard to any insurance) by a national rating agency; (4) there shall have occurred (i) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (ii) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; (5) a general suspension of trading on the New York Stock Exchange or other major exchange shall be in force, or minimum or maximum prices for trading shall have been fixed and be in force, or maximum ranges for prices for securities shall have been required and be in force on any such exchange, whether by virtue of determination by that exchange or by order of the SEC or any other governmental authority having jurisdiction; (6) any event occurring, or information becoming known which, in the reasonable judgment of the Underwriter, makes untrue in any material adverse respect any statement or information contained in the Official Statement, or has the effect that the Official Statement contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; or (7) there shall have occurred any materially adverse change in the affairs or financial condition of the City. (8) any amendment shall have been made to the federal or State Constitution or action by any federal or State court, legislative body, regulatory body, or other authority materially adversely affecting the tax status of the City, its property, income securities (or interest thereon) or the validity or enforceability of the levy of taxes to pay principal of and interest on the Bonds; or (9) the purchase of and payment for the Bonds by the Underwriter, or the resale of the Bonds by the Underwriter, on the terms and conditions herein provided shall be prohibited by any applicable law, governmental authority, board, agency or commission; (e) Delivery of Documents. At or prior to the date of the Closing, the Underwriter shall receive sufficient copies of the following documents in each case dated as of the date of Closing and satisfactory in form and substance to the Underwriter: (1) Opinion of Bond Counsel. An approving opinion of Bond Counsel, as to the validity and tax-exempt status of the Bonds, dated the date of the Closing, and addressed to the City in substantially the form set forth in the Preliminary Official Statement as Appendix C; (2) Reliance Letter. A reliance letter from Bond Counsel to the effect that the Underwriter can rely upon the opinion described in Section 10(e)(1) above;

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(3) Supplemental Opinion of Bond Counsel. A supplemental opinion of Bond Counsel addressed to the City and the Underwriter, dated as of the date of Closing, substantially to the following effect: (a) the Underwriter may rely on the approving opinion of Bond Counsel; (b) the description of the Bonds and the security for the Bonds and statements in the Official Statement on the cover page thereof and under the captions “INTRODUCTION,” “THE BONDS” (excluding any and all information contained with respect to the Book-Entry Only System of DTC), “LEGAL MATTERS - Tax Exemption” and “LEGAL MATTERS - Continuing Disclosure” to the extent they purport to summarize certain provisions of the Resolution, the Continuing Disclosure Undertaking, California law or federal law, fairly and accurately summarize the matters purported to be summarized therein, provided that Bond Counsel need not express any opinion with respect to any financial or statistical data or forecasts, numbers, charts, estimates, projections, assumptions or expressions of opinion, or information relating to DTC or its book-entry only system included therein, or with respect to Appendices A, B and E to the Official Statement; (c) assuming due authorization, execution and delivery by the parties to this Contract of Purchase other than the District, this Contract of Purchase and the Continuing Disclosure Undertaking have been duly authorized, executed and delivered by the District and constitute legal, valid and binding agreements of the District and are enforceable in accordance with their respective terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and except as their enforcement may be subject to the application of equitable principles and the exercise of judicial discretion in appropriate cases if equitable remedies are sought; and (d) the Bonds are exempt from registration pursuant to the Securities Act of 1933, as amended, and the Resolution is exempt from qualification as an indenture pursuant to the Trust Indenture Act of 1939, as amended; (4) Disclosure Counsel Letter. A letter of Jones Hall, A Professional Law Corporation, dated the date of Closing and addressed to the City and the Underwriter, substantially to the effect that based on such counsel’s participation in conferences with representatives of the Underwriter, the Municipal Advisor, counsel to the Underwriter and others, without having undertaken to determine independently the accuracy or completeness of the statements contained in the Preliminary Official Statement and the Official Statement, nothing has come to their attention which has led them to believe that the Preliminary Official Statement as of its date, and the Official Statement as of its date and as of the Closing Date, contained any untrue

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statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (except that no opinion or belief need be expressed as to any financial or statistical data, or information concerning DTC and the book-entry only system or the Bond Insurer and the Bond Insurance Policy contained in the Preliminary Official Statement or the Official Statement); (5) Opinion of the City Attorney. An opinion of the City Attorney of the City, dated the date of Closing and addressed to the City and the Underwriter, to the effect that (i) the City is a general law city, duly organized and validly existing under the Constitution and laws of the State of California (ii) the Resolution authorizing the Bonds and execution and delivery of the Contract of Purchase, the Continuing Disclosure Undertaking, and the Official Statement (collectively, the “City Documents”), was duly adopted at a meeting of the City Council, which was called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout, and the Resolution is in full force and effect and has not been modified, amended, rescinded or repealed since the date of its adoption; (iii) City Documents have been duly authorized, executed and delivered by the City and (assuming due authorization, execution and delivery by and validity against the other parties thereto) constitute the legal, valid and binding obligations of the City enforceable against the City in accordance with their terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights, to the application of equitable principles where equitable remedies are sought and to the exercise of judicial discretion in appropriate cases; (iv) to the best knowledge of such counsel, the execution and delivery of the City Documents and compliance with the provisions thereof under the circumstances contemplated thereby: (a) do not in any material respect conflict with or constitute on the part of the City a breach of or default under any agreement or other instrument to which the City is a party or by which it is bound; and (b) do not and will not in any material respect or constitute on the part of the City a violation, breach of or default under any court order or consent decree to which the City is subject; (v) no authorization, approval, consent, or other order of the State of California or any other governmental body within the State of California is required for the valid authorization, execution and delivery of the City Documents or the consummation by the City of the transactions on its part contemplated therein, except such as have been obtained and except such as may be required under state securities or blue sky laws in connection with the purchase and distribution of the Bonds by the Underwriter; (vi) except as may be stated in the Official Statement, there is no action, suit, proceeding or investigation before or by any court, public board or body pending (notice of which has been served on the City) or, to the City Attorney's knowledge, threatened wherein an unfavorable decision, ruling or finding would: (a) affect the creation, organization, existence or powers of the City, or the titles of its members and officers to their respective offices; (b) enjoin or restrain the collection of the ad valorem tax or the pledge of revenues from the ad valorem tax; (c) in any way question or affect any of the rights, powers, duties or obligations of the City with respect to the ad valorem tax or the moneys and assets pledged or to be pledged to pay the principal of, premium, if any, or interest on the Bonds; (d) in any way affect, contest or seek to prohibit, restrain or enjoin the issuance, sale or delivery of the Bonds, or the validity or enforceability of the Bonds; or (e) in any way question or affect the City Documents

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or the transactions contemplated by the City Documents, or any activity regarding the Bonds; and (vi) based on the information made available to the City Attorney, and without having undertaken to determine independently or assume any responsibility for the accuracy, completeness or fairness of the statements contained in the Official Statement, nothing has come to the attention of the City Attorney as of the date of Closing which would lead the City Attorney to believe that the Official Statement as of its date and as of the date of Closing (excluding therefrom the financial and statistical data and forecasts included therein, as to which no opinion is expressed and information relating to the DTC and its book entry system) contained or contains any untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; (6) City Certificates. A certificate signed by appropriate officials of the City to the effect that (i) such officials are authorized to execute this Contract of Purchase, (ii) the representations, agreements and warranties of the City herein are true and correct in all material respects as of the date of Closing, (iii) the City has complied with all the terms of the Resolution, the Continuing Disclosure Undertaking and this Contract of Purchase to be complied with by the City prior to or concurrently with the Closing, and, as to the City, such documents are in full force and effect, (iv) such officials of the City have reviewed the Preliminary Official Statement and Official Statement and on such basis certify that the Preliminary Official Statement (other than information permitted to be omitted therefrom pursuant to Rule 15c2-12) as of its date and as of the date of the Contract of Purchase did not, and the Official Statement as of its date and as of the Closing Date does not, contain any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading; and, (v) the Bonds being delivered on the date of the Closing to the Underwriter under this Contract of Purchase substantially conform to the descriptions thereof contained in the Resolution, (vi) no event concerning the City has occurred since the date of the Official Statement which has not been disclosed therein or in any supplement thereto, but should be disclosed in order to make the statements in the Official Statement in light of the circumstances in which they were made not misleading, and (vii) there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court or public body, pending or, to the best knowledge of such officials, threatened against the City, contesting in any way the completeness or accuracy of the Official Statement, the issuance of the Bonds by the City on behalf of the City or the due adoption of the Resolution; (7) Arbitrage. A nonarbitrage certificate of the City in form satisfactory to Bond Counsel, with respect to the Bonds; (8) Rating. Evidence satisfactory to the Underwriter that (i) the Bonds shall have been rated “_____” by S&P Global Ratings, a business unit of Standard & Poor’s Financial Services LLC, and (ii) that such rating has not been revoked or downgraded; (9) Resolution. A certificate, together with fully executed copies of the Resolution, of the Clerk of the City Council of the City to the effect that:

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(i) such copies are true and correct copies of the Resolution; and (ii) that the Resolution was duly adopted and has not been modified, amended, rescinded or revoked and is in full force and effect on the date of the Closing; (10) Official Statement. A certificate of the appropriate official of the City evidencing his or her determinations respecting the Preliminary Official Statement in accordance with the Rule; (11) Certificate of the Paying Agent. A certificate of The Bank of New York Mellon Trust Company, N.A., as the paying agent for the Bonds (the “Paying Agent”), signed by a duly authorized officer thereof, and in form and substance satisfactory to the Underwriter, substantially to the effect that no litigation is pending or, to the best of the Paying Agent’s knowledge, threatened (either in state or federal courts) (i) seeking to restrain or enjoin the delivery by the Paying Agent of any of the Bonds, or (ii) in any way contesting or affecting any authority of the Paying Agent for the delivery of the Bonds or the validity or enforceability of the Bonds or any agreement with the Paying Agent; (12) Continuing Disclosure Undertaking. An executed copy of the Continuing Disclosure Undertaking, substantially in the form presented in the Official Statement as Appendix D thereto; (13) Underwriter’s Counsel Opinion. The opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation, San Francisco, California, as counsel to the Underwriter, in a form and substance satisfactory to the Underwriter; and (14) Other Documents. Such additional legal opinions, certificates, proceedings, instruments and other documents as Bond Counsel or the Underwriter may reasonably request to evidence compliance (i) by the City with legal requirements, (ii) the truth and accuracy, as of the time of Closing, of the representations of the City herein contained and of the Official Statement, and (iii) the due performance or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City. (f) Termination. Notwithstanding anything to the contrary herein contained, if for any reason whatsoever the Bonds shall not have been delivered by the City to the Underwriter as provided in Section 6 herein, then the obligation to purchase Bonds hereunder shall terminate and be of no further force or effect except with respect to the obligations of the City and the Underwriter under Sections 12(c) and 14 hereof. If the City is unable to satisfy the conditions to the Underwriter’s obligations contained in this Contract of Purchase or if the Underwriter’s obligations shall be terminated for any reason permitted by this Contract of Purchase, this Contract of Purchase may be cancelled by the Underwriter at, or at any time prior to, the time of Closing. Notice of such cancellation shall be given to the City in writing, or, if by telephone, confirmed in writing. Notwithstanding any provision herein to the contrary, the performance of any and all obligations of the City hereunder and the

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performance of any and all conditions contained herein for the benefit of the Underwriter may be waived by the Underwriter in writing at its sole discretion. 11. Conditions to Obligations of the City. The performance by the City of its obligations is conditioned upon (i) the performance by the Underwriter of its obligations hereunder; and (ii) receipt by the City and the Underwriter of opinions and certificates being delivered at the Closing by persons and entities other than the City. 12. Expenses. (a) To the extent that the transactions contemplated by this Contract of Purchase are consummated, the Underwriter shall pay, by transferring such amounts to The Bank of New York Mellon Trust Company, N.A., as Costs of Issuance Custodian (the “Costs of Issuance Custodian”), from net original issue premium retained for such purpose pursuant to Section 1 hereof, all costs of issuance of the Bonds up to $_________, including but not limited to the following costs of issuance: (i) the fees and disbursements of the City’s Bond Counsel and Disclosure Counsel; (ii) the cost of the preparation, printing and delivery of the Bonds; (iii) the fees for the Bond rating; (iv) the cost of the printing and distribution of the Preliminary Official Statement and Official Statement; (v) the initial fees of the Paying Agent and Costs of Issuance Custodian; (vi) expenses for travel, lodging, and subsistence related to rating agency visits and other meetings connected to the authorization, sale, issuance and distribution of the Bonds; (vii) the fees and expenses of the Municipal Advisor; and (viii) all other fees and expenses incident to the issuance and sale of the Bonds. The balance of any costs of issuance not paid by the Underwriter shall be paid by the District. In the event that following payment of the expenses set forth above, there is any portion remaining, such remaining amount shall be deposited into the Project Fund (as defined in the Resolution) for the Bonds. (b) Notwithstanding any of the foregoing, the Underwriter shall pay all out of pocket expenses of the Underwriter, including the California Debt and Investment Advisory Commission fee, CUSIP fees, the fees and disbursement of counsel to the Underwriter, and other expenses (except those expressly provided above) without limitation, except travel and related expenses attributable to City personnel in connection with the Bond rating. (c) Notwithstanding Section 10(f) hereof, the City hereby agrees, in the event the purchase and sale of the Bonds does not occur as contemplated hereunder, to reimburse the Underwriter for any costs described in Subsection 12(a)(vi) above that are attributable to City personnel. 13. Notices. Any notice or other communication to be given under this Contract of Purchase (other than the acceptance hereof as specified in the first paragraph hereof) may be given by delivering the same in writing, if to the City, to City of Campbell, 70 N. First Street, Campbell, California 95008, Attention: Finance Director, or if to the Underwriter, to Stifel, Nicolaus & Company, Incorporated, One Montgomery Street, 35th Floor, San Francisco, CA 94104, attention: Eileen Gallagher, Managing Director. 14. Parties in Interest; Survival of Representations and Warranties. This Contract of Purchase when accepted by the City in writing as heretofore specified shall constitute the entire agreement between the City and the Underwriter. This Contract of Purchase is made solely for the benefit of the City and the Underwriter (including the successors or assigns of the Underwriter). No person shall acquire or have any rights hereunder or by virtue hereof. All the representations, warranties and agreements of the City in this Contract of Purchase shall survive regardless of (a) any

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investigation or any statement in respect thereof made by or on behalf of the Underwriter, (b) delivery of and payment by the Underwriter for the Bonds hereunder, and (c) any termination of this Contract of Purchase. 15. Execution in Counterparts. This Contract of Purchase may be executed in several counterparts each of which shall be regarded as an original and all of which shall constitute but one and the same document. [REMAINDER OF PAGE LEFT BLANK]

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16. Applicable Law. This Contract of Purchase shall be interpreted, governed and enforced in accordance with the laws of the State applicable to contracts made and performed in such State. Very truly yours, STIFEL, NICOLAUS & COMPANY, INCORPORATED, as Underwriter By: Authorized Representative The foregoing is hereby agreed to and accepted at _______ p.m., Pacific Time, as of the date first above written: CITY OF CAMPBELL By: Will Fuentes Finance Director

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EXHIBIT A $_________ CITY OF CAMPBELL Election of 2018 General Obligation Bonds, Series 2022 $________ Serial Bonds Maturity (September 1) Principal Amount Interest Rate Yield Price 10% Rule Satisfied* Hold-the-Offering-Price Rule $________ Term Bonds Maturity (September 1) Principal Amount Interest Rate Yield Price 10% Rule Satisfied* Hold-the-Offering-Price Rule _________________________________ (1 ) Yield to call at par on September 1, 20__. * 10% of each maturity of the Bonds sold to the public on the sale date. Redemption Provisions Optional Redemption. The Bonds maturing on or before September 1, 20__, are not subject to redemption prior to their respective stated maturities. The Bonds maturing on or after September 1, 20__, are subject to redemption prior to maturity, at the option of the City, in whole or in part among maturities on such basis as designated by the City and by lot within a maturity, from any available source of funds, on September 1, 20__, and on any date thereafter, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed together with accrued interest thereon to the date fixed for redemption, without premium. Mandatory Sinking Fund Redemption. The Term Bonds maturing on September 1, 20__ and September 1, 20__ (the “Term Bonds”) are subject to redemption prior to their stated maturity date, without a redemption premium, in part by lot, from mandatory sinking fund payments on each September 1, on and after September 1, 20__ with respect to the Term Bonds maturing on September 1, 20__ and on and after September 1, 20__ with respect to the Term Bonds maturing on September 1, 20__, in the principal amounts as set forth in the following tables:

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$________ Term Bond Due September 1, 20__ Payment Date (September 1) Payment Amount (Maturity) $_________ Term Bond Due September 1, 20__ Payment Date (September 1) Payment Amount (Maturity) If some but not all of the Term Bonds have been optionally redeemed, the aggregate principal amount of Term Bonds to be subject to Mandatory Sinking Fund Redemption in each year will be reduced on a pro rata basis in integral multiples of $5,000, as designated in written notice filed by the City with the Paying Agent.

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EXHIBIT B FORM OF ISSUE PRICE CERTIFICATE FOR THE BONDS $________ CITY OF CAMPBELL Election of 2018 General Obligation Bonds, Series 2022 ISSUE PRICE CERTIFICATE The undersigned, on behalf of STIFEL, NICOLAUS & COMPANY, INCORPORATED (“STIFEL”), hereby certifies as set forth below with respect to the sale and issuance of the above-captioned obligations (the “Bonds”). 1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A. 2. Initial Offering Price of the Hold-the-Offering-Price Maturities. (a) Stifel offered the Hold-the-Offering-Price Maturities to the Public for purchase at the respective initial offering prices listed in Schedule A (the “Initial Offering Prices”) on or before the Sale Date. A copy of the pricing wire or equivalent communication for the Bonds is attached to this certificate as Schedule B. (b) As set forth in the Contract of Purchase, Stifel has agreed in writing that, (i) for each Maturity of the Hold-the-Offering-Price Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the “hold-the-offering-price rule”), and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail or other third-party distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail or other third-party distribution agreement, to comply with the hold-the-offering-price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity of the Hold-the-Offering-Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period. 3. Defined Terms. (a) City means City of Campbell. (b) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “General Rule Maturities.” (c) Hold-the-Offering-Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the “Hold-the-Offering-Price Maturities.” (d) Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale Date, or (ii) the date on which the Underwriter has sold at least 10% of such Hold-the-Offering-

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Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold-the-Offering-Price Maturity. (e) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities. (f) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter. The term “related party” for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (g) Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds. The Sale Date of the Bonds is ______, 2022. (h) Underwriter means (i) any person that agrees pursuant to a written contract with the City (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail or other third-party distribution agreement participating in the initial sale of the Bonds to the Public). The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Stifel’s interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the City with respect to certain of the representations set forth in the tax certificate with respect to the Bonds and with respect to compliance with the federal income tax rules affecting the Bonds, and by Jones Hall, A Professional Law Corporation, in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the City from time to time relating to the Bonds. STIFEL, NICOLAUS & COMPANY INCORPORATED By: Name: STIFEL, NICOLAUS & COMPANY INCORPORATED By: Name: Dated: _________, 2022

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SCHEDULE A SALE PRICES $_________ Serial Bonds
Maturity (September 1) Principal Amount Interest Rate Yield Price 10% Rule Satisfied* Hold-the-Offering-Price Rule $_________ Term Bonds Maturity (September 1) Principal Amount Interest Rate Yield Price 10% Rule Satisfied* Hold-the-Offering-Price Rule _________________________________ _________________________________ (1 ) Yield to call at par on September 1, 20__. * 10% of each maturity of the Bonds sold to the public on the sale date.

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Attachment: Draft Bond Purchase Agreement (Authorization of Second Issuance of Measure O Bonds)

PRELIMINARY OFFICIAL STATEMENT DATED ________, 2022 NEW ISSUE - FULL BOOK-ENTRY RATING: S&P: “___” See “RATING”. In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to certain qualifications described herein, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. Bond Counsel expresses no opinion regarding any other tax consequences caused by the ownership or disposition of, or the accrual or receipt of interest on, the Bonds. See "LEGAL MATTERS – Tax Exemption." $30,000,000* CITY OF CAMPBELL ELECTION OF 2018 GENERAL OBLIGATION BONDS, SERIES 2022 Dated: Date of Delivery Due: September 1, as shown on inside cover Cover Page. This cover page contains information for quick reference only. It is not a summary of all the provisions of the Bonds. Investors must read the entire official statement to obtain information essential to making an informed investment decision. Authority and Purpose. The captioned Election of 2018 General Obligation Bonds, Series 2022 (the “Bonds”), are being issued by the City of Campbell (the “City”) pursuant to certain provisions of the California Government Code and resolutions of the City Council of the City adopted on May 17, 2022. The Bonds were authorized at an election of the registered voters of the City held on November 6, 2018, which authorized the issuance of general obligation bonds for the purpose of financing the acquisition and improvement of a police emergency operations center and a public library. The initial series of bonds under the 2018 authorization was issued in 2020. See “THE BONDS – Authority for Issuance” and “THE FINANCING PLAN” herein. Security. The Bonds are general obligations of the City, payable solely from ad valorem property taxes levied by the City and collected by Santa Clara County (the “County”). The City Council is empowered and is obligated to annually levy ad valorem taxes for the payment of interest on, and principal of, the Bonds upon all property subject to taxation by the City, without limitation of rate or amount (except certain personal property that is taxable at limited rates). See “SECURITY FOR THE BONDS.” Payments. Interest on the Bonds accrues from the date of delivery and is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2022, by check, draft or wire mailed to the person in whose name the Bond is registered. Payments of principal and interest on the Bonds will be paid by The Bank of New York Mellon Trust Company, N.A., as paying agent for the Bonds (the “Paying Agent”), to DTC for subsequent disbursement to DTC Participants who will remit such payments to the beneficial owners of the Bonds. See “THE BONDS – Description of the Bonds.” Redemption. The Bonds are subject to optional redemption and mandatory sinking fund redemption prior to maturity as described herein. See discussion of redemption under the heading “THE BONDS.” Book-Entry Only. The Bonds will be issued in book-entry form only, and will be initially issued and registered in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”). Purchasers will not receive physical certificates representing their interests in the Bonds. See APPENDIX E for additional information about the book-entry only system. The following firm, serving as municipal advisor to the City, has structured this issue.

Maturity Schedules (See inside cover) The Bonds are offered when, as and if issued and received by the Underwriter and subject to the approval as to their legality by Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel. Certain legal matters will also be passed upon for the City by Jones Hall, A Professional Law Corporation, San Francisco, California, as Disclosure Counsel and for the Underwriter by Stradling Yocca Carlson & Rauth, A Professional Corporation, San Francisco, California. It is anticipated that the Bonds in definitive form will be available for delivery to Cede & Co., as nominee of The Depository Trust Company, on or about June 22, 2022. The date of this Official Statement is May __, 2022.

This Preliminary Official Statement and the information contained herein are subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

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PRELIMINARY OFFICIAL STATEMENT DATED ________, 2022 * Preliminary; subject to change.

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MATURITY SCHEDULE* $30,000,000* CITY OF CAMPBELL ELECTION OF 2018 GENERAL OBLIGATION BONDS, SERIES 2022 (Base CUSIP†: _____) Maturity Date (September 1) Principal Amount Interest Rate Yield Price CUSIP† No. *Preliminary; subject to change. † CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by FactSet Research Systems Inc. Copyright (c) 2022 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIPGlobal Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only. None of the City, the Underwriter or their agents or counsel take any responsibility for the accuracy of such numbers.

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Attachment: Draft Preliminary Official Statement (POS) (Authorization of Second Issuance of Measure O Bonds) GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT Use of Official Statement. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This Official Statement is not a contract between any bond owner and the City or the Underwriter. This Official Statement and the information contained herein are subject to completion or amendment without notice. No Offering Except by This Official Statement. No dealer, broker, salesperson or other person has been authorized by the City or the Underwriter to give any information or to make any representations relating to the Bonds other than those contained in this Official Statement and, if given or made, such other information or representation must not be relied upon as having been authorized by the City or the Underwriter. No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sale of the Bonds by a person in any jurisdiction in which it is unlawful for such person to make such an offer, solicitation or sale. Estimates and Projections. When used in this Official Statement and in any continuing disclosure by the City, in any press release and in any oral statement made with the approval of an authorized officer of the City, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “forecast,” “expect,” “intend” and similar expressions identify “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Any forecast is subject to such uncertainties. Inevitably, some assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between forecasts and actual results, and those differences may be material. Information in Official Statement. The information set forth in this Official Statement has been furnished by the City and other sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness by the City. Involvement of Underwriter. The Underwriter (as defined in “UNDERWRITING”) has provided the following sentence for inclusion in this Official Statement. The Underwriter has reviewed the information in this Official Statement in accordance with, and as a part of, its responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this transaction, but the Underwriter does not guarantee the accuracy or completeness of such information. Stabilization of Prices. In connection with this offering, the Underwriter may overallot or effect transactions which stabilize or maintain the market price of the Bonds at a level above that which might otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. The Underwriter may offer and sell the Bonds to certain dealers and others at prices lower than the public offering prices set forth on the cover page hereof and said public offering prices may be changed from time to time by the Underwriter. Document Summaries. All summaries of the Bond Resolution or other documents referred to in this Official Statement are made subject to the provisions of such documents and qualified in their entirety to reference to such documents, and do not purport to be complete statements of any or all of such provisions. No Securities Laws Registration. The Bonds have not been registered under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, in reliance upon exceptions therein for the issuance and sale of municipal securities. The Bonds have not been registered or qualified under the securities laws of any state. Effective Date. This Official Statement speaks only as of its date, and the information and expressions of opinion contained in this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the Bonds will, under any circumstances, give rise to any implication that there has been no change in the affairs of the City, or the other parties described in this Official Statement, or the condition of the property within the City since the date of this Official Statement. Website. The City maintains a website; however, the information presented on the website is not a part of this Official Statement and should not be relied upon in making an investment decision with respect to the Bonds.

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Attachment: Draft Preliminary Official Statement (POS) (Authorization of Second Issuance of Measure O Bonds)

CITY OF CAMPBELL (SANTA CLARA COUNTY, CALIFORNIA) MEMBERS OF THE CITY COUNCIL Paul Resnikoff, Mayor Anne Bybee, Vice Mayor Liz Gibbons, Councilmember Susan M. Landry, Councilmember Sergio Lopez, Councilmember CITY OFFICIALS AND STAFF Brian Loventhal, City Manager Dusty Christopherson, City Clerk William Seligmann, City Attorney Will Fuentes, Finance Director PROFESSIONAL SERVICES BOND AND DISCLOSURE COUNSEL Jones Hall, A Professional Law Corporation San Francisco, California MUNICIPAL ADVISOR NHA Advisors, LLC San Rafael, California BOND REGISTRAR, TRANSFER AGENT, AND PAYING AGENT The Bank of New York Mellon Trust Company, N.A. Dallas, Texas

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TABLE OF CONTENTS Page INTRODUCTION .................................................................................................................................. 1 THE FINANCING PLAN ....................................................................................................................... 4 Purpose of Issue ............................................................................................................................... 4 SOURCES AND USES OF FUNDS ..................................................................................................... 5 THE BONDS ......................................................................................................................................... 6 Authority for Issuance ....................................................................................................................... 6 Description of the Bonds .................................................................................................................. 6 Payment ............................................................................................................................................ 7 Redemption ...................................................................................................................................... 7 Registration, Transfer and Exchange of Bonds ................................................................................ 9 Defeasance ...................................................................................................................................... 9 DEBT SERVICE SCHEDULES .......................................................................................................... 11 SECURITY FOR THE BONDS ........................................................................................................... 13 Ad Valorem Taxes .......................................................................................................................... 13 Debt Service Funds ........................................................................................................................ 13 Limited Obligation ........................................................................................................................... 14 COVID-19 Global Pandemic ........................................................................................................... 14 PROPERTY TAXATION ..................................................................................................................... 16 Property Tax Collection Procedures ............................................................................................... 16 Taxation of State-Assessed Utility Property ................................................................................... 17 Assessed Valuation ........................................................................................................................ 17 Alternative Method of Tax Apportionment - Teeter Plan ................................................................ 20 Appeals of Assessed Value ............................................................................................................ 21 Tax Rates ....................................................................................................................................... 22 Major Taxpayers ............................................................................................................................. 23 Direct and Overlapping Debt .......................................................................................................... 23 CONSTITUTIONAL AND STATUTORY PROVISIONS ..................................................................... 25 AFFECTING CITY REVENUES AND APPROPRIATIONS ................................................................ 25 Article XIIIA of the State Constitution ............................................................................................. 25 Legislation Implementing Article XIIIA ............................................................................................ 25 Article XIIIB of the State Constitution ............................................................................................. 26 Articles XIIIC and XIIID of the State Constitution ........................................................................... 26 Proposition 62 ................................................................................................................................. 27 Proposition 1A; Proposition 22 ....................................................................................................... 28 Possible Future Initiatives ............................................................................................................... 28 LEGAL MATTERS .............................................................................................................................. 29 Tax Exemption ................................................................................................................................ 29 Other Tax Considerations ............................................................................................................... 30 Continuing Disclosure ..................................................................................................................... 30 Absence of Material Litigation ........................................................................................................ 31 RATING .............................................................................................................................................. 31 MUNICIPAL ADVISOR ....................................................................................................................... 31 UNDERWRITING ............................................................................................................................... 32 APPENDIX A - FINANCIAL, ECONOMIC AND DEMOGRAPHIC INFORMATION FOR THE CITY OF CAMPBELL AND SANTA CLARA COUNTY APPENDIX B - ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR YEAR ENDED JUNE 30, 2021 APPENDIX C - PROPOSED FORM OF OPINION OF BOND COUNSEL APPENDIX D - FORM OF CONTINUING DISCLOSURE CERTIFICATE APPENDIX E - DTC AND THE BOOK-ENTRY ONLY SYSTEM

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__________________________________ OFFICIAL STATEMENT __________________________________ $30,000,000* CITY OF CAMPBELL ELECTION OF 2018 GENERAL OBLIGATION BONDS, SERIES 2022 INTRODUCTION This Official Statement, which includes the cover page and appendices hereto, provides information in connection with the sale and delivery of the City of Campbell Election of 2018 General Obligation Bonds, Series 2022 (the “Bonds”). This Introduction is not a summary of this Official Statement. It is only a brief description of and guide to, and is qualified by, more complete and detailed information contained in the entire Official Statement, including the cover page and appendices hereto, and the documents summarized or described herein. A full review should be made of the entire Official Statement. The offering of the Bonds to potential investors is made only by means of the entire Official Statement. The City The City of Campbell (the “City”) is located in Santa Clara County (the “County”) contiguous with the City of San Jose and 50 miles south of San Francisco. The City encompasses 6.7 square miles, is substantially built out, and had a population of approximately 41,533 residents as of January 1, 2021. The City is a general law city and is comprised of a mix of residential, office and commercial retail businesses. For more information regarding the City and its finances, see APPENDIX A and APPENDIX B. Covid Statement The COVID-19 pandemic has resulted in a public health crisis that is fluid and unpredictable with financial and economic impacts that cannot be predicted. As such, investors are cautioned that the City cannot at this time predict the impacts that the ongoing pandemic or other public health emergencies may have on its operations and finances, property values in the City, and economic activity in the City, the State of California (the “State”) and the nation, among others. For more disclosure regarding the COVID-19 emergency, see “SECURITY FOR THE BONDS – COVID-19 Pandemic.” Sources of Payment for the Bonds The Bonds are general obligations of the City payable solely from ad valorem property taxes levied by the City and collected by the County. The City Council is empowered and obligated to annually levy ad valorem taxes for the payment of interest on, and principal of, the Bonds upon all property subject to taxation by the City, without limitation of rate or amount (except

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with respect to certain personal property that is taxable at limited rates). See “SECURITY FOR THE BONDS” and “PROPERTY TAXATION.” The impact that the current COVID-19 outbreak might have on the assessed valuation of property located in the City is uncertain at this time. See “PROPERTY TAXATION – Assessed Valuations” and “SECURITY FOR THE BONDS – COVID-19 Pandemic.” Purposes for Issuance The net proceeds of the Bonds will be used to finance the acquisition and improvement of a police emergency operations center and a public library, as approved at an election of the City’s voters, and to pay costs of issuing the Bonds. See “THE FINANCING PLAN." Authority for Issuance The Bonds are being issued under the provisions of Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, commencing with Section 53506 (the “Bond Law”), and pursuant to and consistent with a resolution adopted by the City Council of the City on May 17, 2022 (the “Bond Resolution”). See “THE BONDS - Authority for Issuance.” Description of the Bonds Generally. The Bonds mature in the years and in the amounts as set forth on the inside cover page of this Official Statement. The Bonds will be issued in book-entry form only, and will be initially issued and registered in the name of Cede & Co. as nominee for DTC. Purchasers will not receive physical certificates representing their interest in the Bonds. See “THE BONDS – Description of the Bonds” and APPENDIX E. Redemption. The Bonds are subject to redemption prior to maturity as described under the heading “THE BONDS – Redemption." Legal Matters Issuance of the Bonds is subject to the approving opinions of Jones Hall, A Professional Law Corporation, San Francisco, California, as bond counsel (“Bond Counsel”), to be delivered in substantially the respective forms attached hereto as APPENDIX C. Jones Hall, A Professional Law Corporation, San Francisco, California, will also serve as disclosure counsel to the City (“Disclosure Counsel”). Tax Matters In the opinion of Bond Counsel, interest on the Bonds is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal individual alternative minimum tax. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income taxes. See “TAX MATTERS” for additional information, and APPENDIX C for the forms of Bond Counsel’s opinions to be delivered concurrently with the Bonds.

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Offering and Delivery of the Bonds The Bonds are offered when, as and if issued and received by the Underwriter, subject to approval as to the legality by Bond Counsel. It is anticipated that the Bonds will be available for delivery through the facilities of DTC on or about the date set forth on the front cover. Continuing Disclosure The City has covenanted and agreed that it will comply with and carry out all of the provisions of the Continuing Disclosure Certificate. The form of the Continuing Disclosure Certificate is included in APPENDIX D. See also “CONTINUING DISCLOSURE." Other Information This Official Statement speaks only as of its date, and the information contained herein is subject to change. Copies of documents referred to in this Official Statement and information concerning the Bonds are available from the City of Campbell City Clerk, 70 North First Street, Campbell, California 95008, (408) 866-2117. The City may impose a charge for copying, mailing and handling. This Official Statement is not to be construed as a contract between any bond owner and the City or the Underwriter. Statements contained in this Official Statement which involve estimates, forecasts or matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. The summaries and references to documents, statutes and constitutional provisions referred to herein do not purport to be comprehensive or definitive, and are qualified in their entireties by reference to each of such documents, statutes and constitutional provisions. The information set forth herein has been obtained from official sources which are believed to be reliable, but it is not guaranteed as to accuracy or completeness, and is not to be construed as a representation by the City. The information and expressions of opinions herein are subject to change without notice and neither delivery of this Official Statement nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date hereof. This Official Statement is submitted in connection with the sale of the Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose.

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THE FINANCING PLAN Purpose of Issue The proceeds of the Bonds will be used to finance projects approved by more than the requisite two-thirds of City voters that voted at an election held in the City on November 6, 2018 (the “Bond Election”). The abbreviated form of the ballot measure, labeled Measure O (the “Bond Measure”), is set forth below: “To provide a police emergency operations center that is fully operational during a disaster and an innovative library in seismically safe, accessible, and energy-efficient facilities meeting current safety codes, shall the City of Campbell’s measure to issue $50,000,000 in general obligation bonds with projected levies of $0.019 per $100 ($19 per $100,000) of assessed value, generating an estimated average of $3,025,000 annually to repay bonds through maturity, with citizen oversight and all funds spent locally, be adopted?” The Bonds will be the second series of bonds issued pursuant to the authority received at the Bond Election. [Remainder of page intentionally left blank]

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SOURCES AND USES OF FUNDS The estimated sources and uses of funds with respect to the Bonds are as follows: Sources of Funds Principal Amount of Bonds Plus: Net Original Issue Premium Total Sources Uses of Funds Deposit to Project Fund Costs of Issuance* Total Uses *All estimated costs of issuance including, but not limited to, Underwriter’s discount, printing costs, and fees of Bond Counsel, Disclosure Counsel, the Municipal Advisor, the Paying Agent and the rating agency. [Remainder of page intentionally left blank]

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THE BONDS Authority for Issuance The Bonds are issued under the Bond Law and other applicable law. The City authorized the issuance of the Bonds pursuant to the Bond Resolution. The City received authorization at the Bond Election to issue $50,000,000 of general obligation bonds. The Bonds are the second series of Bonds to be sold and issued under the authorization received at the Bond Election. The City previously issued its $20,000,000 Election of 2018 General Obligation Bonds, Series 2020 on August 19, 2020 (the “2020 Bonds”). Description of the Bonds Book-Entry Form. The Bonds will be issued in book-entry form only, and will be initially issued and registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York (“DTC”). Purchasers of the Bonds (the “Beneficial Owners”) will not receive physical certificates representing their interest in the Bonds. Payments of principal of and interest on the Bonds will be paid by the Paying Agent to DTC for subsequent disbursement to DTC Participants which will remit such payments to the Beneficial Owners of the Bonds. As long as DTC’s book-entry method is used for the Bonds, the Paying Agent will send any notice of prepayment or other notices to owners only to DTC. Any failure of DTC to advise any DTC Participant, or of any DTC Participant to notify any Beneficial Owner, of any such notice and its content or effect will not affect the validity or sufficiency of the proceedings relating to the prepayment of the Bonds called for prepayment or of any other action premised on such notice. The Paying Agent, the City, and the Underwriter have no responsibility or liability for any aspects of the records relating to or payments made on account of beneficial ownership, or for maintaining, supervising or reviewing any records relating to beneficial ownership, of interests in the Bonds. See APPENDIX E for additional information. Interest. Interest on the Bonds is payable semiannually on March 1 and September 1 of each year (the “Interest Payment Dates”), commencing September 1, 2022. Interest on the Bonds is payable from the Interest Payment Date next preceding the date of authentication thereof unless: 1. a Bond is authenticated as of an Interest Payment Date, in which event it will bear interest from such date, 2. a Bond is authenticated prior to an Interest Payment Date and after the close of business on the 15th day of the month preceding the Interest Payment Date (each, a “Record Date”), in which event it will bear interest from such Interest Payment Date, 3. a Bond is authenticated on or before August 15, 2022, in which event it shall bear interest from the Closing Date, or

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4. at the time of authentication of a Bond, interest is in default thereon, in which event it will bear interest from the Interest Payment Date to which interest has previously been paid or made available for payment thereon. Interest on the Bonds will be calculated on the basis of a 360-day year comprised of twelve 30-day months. Denominations and Maturity. The Bonds shall be issued in the denomination of $5,000 each or any integral multiple of $5,000. The Bonds mature on September 1 in the years and amounts set forth on the inside cover page hereof. See the maturity schedule on the inside cover page hereof and “DEBT SERVICE SCHEDULE” below. Payment Interest on the Bonds (including the final interest payment upon maturity) is payable by check of the Paying Agent mailed to the owner thereof at such owner’s address as it appears on the Registration Books (as defined below) at the close of business on the preceding Record Date, except that at the written request of the Owner of at least $1,000,000 aggregate principal amount of the Bonds, which written request is on file with the Paying Agent as of any Record Date, interest on such Bonds shall be paid by wire transfer on the succeeding Interest Payment Date to an account in the United States of America as shall be specified in such written request. Principal of and premium (if any) on the Bonds is payable in lawful money of the United States of America upon presentation and surrender at the principal office of the Paying Agent. Redemption* Optional Redemption. The Bonds maturing on or before September 1, 2030, are not subject to redemption prior to their respective stated maturities. The Bonds maturing on or after September 1, 2031, are subject to redemption prior to maturity, at the option of the City, in whole or in part among maturities on such basis as designated by the City and by lot within a maturity, from any available source of funds, on September 1, 2030, and on any date thereafter, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed together with accrued interest thereon to the date fixed for redemption, without premium. Mandatory Sinking Fund Redemption. The Term Bonds maturing on September 1, 20__ and September 1, 20__ (the “Term Bonds”) are subject to redemption prior to their stated maturity date, without a redemption premium, in part by lot, from mandatory sinking fund payments on each September 1, on and after September 1, 20__, in the principal amounts as set forth in the following tables:
* Preliminary; subject to change.

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$_______ Term Bond Due September 1, 20__ Payment Date (September 1) Payment Amount (Maturity) $_______ Term Bond Due September 1, 20__ Payment Date (September 1) Payment Amount (Maturity) If some but not all of the Term Bonds have been optionally redeemed, the aggregate principal amount of Term Bonds to be subject to Mandatory Sinking Fund Redemption in each year will be reduced on a pro rata basis in integral multiples of $5,000, as designated in written notice filed by the City with the Paying Agent. Redemption Procedure. The Paying Agent will cause notice of any redemption to be mailed, first class mail, postage prepaid, at least 20 days but not more than 60 days prior to the date fixed for redemption, (i) to the Securities Depositories and the Municipal Securities Rulemaking Board, and (ii) to the respective Owners of any Bonds designated for redemption, at their addresses appearing on the Registration Books (as defined below) maintained by the Paying Agent. Such mailing will not be a condition precedent to such redemption and failure to mail or to receive any such notice will not affect the validity of the proceedings for the redemption of such Bonds. The City is entitled to send a redemption notice that declares that the redemption is conditional upon the availability of moneys to accomplish the redemption, and the City may rescind any notice of optional redemption of the Bonds by written notice to the Paying Agent on or prior to the date fixed for redemption, and the Paying Agent shall mail notice of such rescission of redemption in the same manner as the original notice of redemption was sent under this section. Any notice of redemption shall be cancelled and annulled if for any reason funds will not be or are not available on the date fixed for redemption. The City and the Paying Agent have no liability to the Owners or any other party related to or arising from such rescission. A redemption notice will state the redemption date and the redemption price and, if less than all of the then Outstanding Bonds are to be called for redemption, will designate the serial numbers of the Bonds to be redeemed by giving the individual number of each Bond or by stating that all Bonds between two stated numbers, both inclusive, or by stating that all of the Bonds of one or more maturities have been called for redemption, and will require that such Bonds be then surrendered at the principal office of the Paying Agent for redemption at the said redemption price, giving notice also that further interest on such Bonds will not accrue from and after the redemption date. Partial Redemption. Upon surrender of Bonds redeemed in part only, the City will execute and the Paying Agent will authenticate and deliver to the owner, at the expense of the

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City, a new Bond or Bonds, of the same maturity, of authorized denominations in aggregate principal amount equal to the unredeemed portion of the Bond or Bonds. Effect of Redemption. From and after the date fixed for redemption, if notice of such redemption has been duly given and funds available for the payment of the principal of and interest (and premium, if any) on the Bonds so called for redemption have been duly provided, such Bonds so called will cease to be entitled to any benefit under the Bond Resolution other than the right to receive payment of the redemption price, and no interest will accrue thereon on or after the redemption date specified in such notice. Registration, Transfer and Exchange of Bonds If the book-entry system as described above and in APPENDIX E is no longer used with respect to the Bonds, the following provisions will govern the registration, transfer, and exchange of the Bonds. Registration Books. The Paying Agent will keep or cause to be kept sufficient books for the registration and transfer of the Bonds (the “Registration Books”), which will at all times be open to inspection by the City upon reasonable notice; and, upon presentation for such purpose, the Paying Agent shall, under such reasonable regulations as it may prescribe, register or transfer or cause to be registered or transferred, on said books, the Bonds. Transfer. Any Bond may, in accordance with its terms, be transferred, upon the Registration Books, by the person in whose name it is registered, in person or by his duly authorized attorney, upon surrender of such Bond for cancellation at the principal office of the Paying Agent, accompanied by delivery of a written instrument of transfer in a form approved by the Paying Agent, duly executed. The City may charge a reasonable sum for each new Bond issued upon any transfer. Whenever any Bond or Bonds are surrendered for transfer, the City will execute and the Paying Agent will authenticate and deliver a new Bond or Bonds, for like aggregate principal amount. Exchange. Bonds may be exchanged at the principal office of the Paying Agent for a like aggregate principal amount of Bonds of authorized denominations and of the same maturity. The City may charge a reasonable sum for each new Bond issued upon any exchange. Defeasance The City has the option to pay and discharge the entire indebtedness on all or any portion of the outstanding Bonds in any one or more of the following ways: (a) by paying or causing to be paid the principal of and interest on such Bonds, as and when the same become due and payable; (b) by irrevocably depositing, in trust, at or before maturity: (i) lawful money of the United States of America in an amount equal to the principal amount of such Bonds and all unpaid interest thereon to maturity; or

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(ii) Federal Securities (as defined below), the principal of and interest on, which when due, in the opinion of a certified public accountant delivered to the City, will provide money sufficient to pay the principal of and all unpaid interest to maturity on the Bonds to be paid, as such principal and interest become due. (c) by delivering such Bonds to the Paying Agent for cancellation by it. “Federal Securities” means United States Treasury notes, bonds, bills or certificates of indebtedness, or any other obligations, the timely payment of which is directly or indirectly guaranteed by the faith and credit of the United States of America. [Remainder of page intentionally left blank.]

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DEBT SERVICE SCHEDULES The following table shows the debt service schedule with respect to the Bonds, assuming no optional redemptions. CITY OF CAMPBELL Annual Debt Service Schedule Election of 2018 General Obligation Bonds, Series 2022 Bond Year Ending September 1 Principal Interest Total Debt Service 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 Total

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Combined Debt Service Schedule. In addition to the Bonds described herein, the City previously issued the outstanding 2020 Bonds. The following table shows the combined debt service schedule for the 2020 Bonds and the Bonds, assuming no optional redemptions. CITY OF CAMPBELL Combined General Obligation Bonds Debt Service Schedule Bond Year Ending September 1 2020 Bonds Bonds Aggregate Debt Service 2022 $1,611,100.00 2023 1,361,100.00 2024 894,900.00 2025 896,100.00 2026 896,700.00 2027 896,700.00 2028 896,100.00 2029 894,900.00 2030 893,100.00 2031 895,700.00 2032 897,500.00 2033 893,500.00 2034 893,900.00 2035 893,500.00 2036 897,300.00 2037 895,650.00 2038 893,550.00 2039 896,000.00 2040 893,900.00 2041 896,600.00 2042 894,000.00 2043 896,200.00 2044 895,000.00 2045 897,800.00 2046 894,400.00 2047 895,000.00 2048 894,400.00 2049 897,600.00 2050 894,400.00 Total $27,146,600.00

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SECURITY FOR THE BONDS Ad Valorem Taxes Bonds Payable from Ad Valorem Property Taxes. The Bonds are general obligations of the City, payable solely from ad valorem property taxes levied by the City and collected by the County. The City is empowered and is obligated, and under the Bond Resolution has covenanted, to annually levy ad valorem taxes for the payment of the Bonds and the interest thereon upon all property within the City subject to taxation by the City, without limitation of rate or amount (except certain personal property that is taxable at limited rates). Levy and Collection. The City will levy and the County will collect such ad valorem taxes in such amounts and at such times as is necessary to ensure the timely payment of debt service. Such taxes, when collected, will be deposited into a debt service fund for the Bonds, which is maintained by the City and which is irrevocably pledged for the payment of principal of and interest on the Bonds when due. City property taxes are assessed and collected by the County in the same manner, at the same time and in the same installments as other ad valorem taxes on real property and will have the same priority, become delinquent at the same times and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do the other ad valorem taxes on real property. As described below, the County has adopted a Teeter Plan and the City has elected to participate in the Teeter Plan. See “PROPERTY TAXATION – Alternative Method of Tax Apportionment – Teeter Plan.” Annual Tax Rates. The amount of the annual ad valorem tax levied by the City to repay the Bonds will be determined by the relationship between the assessed valuation of taxable property in the City and the amount of debt service due on the Bonds. Fluctuations in the annual debt service on the Bonds and the assessed value of taxable property in the City may cause the annual tax rate to fluctuate. Economic and other factors beyond the City’s control, such as economic recession, deflation of land values, a relocation out of the City or financial difficulty or bankruptcy by one or more major property taxpayers, or the complete or partial destruction of taxable property caused by, among other eventualities, earthquake, flood, fire, epidemic, or other natural disaster or event, could cause a reduction in the assessed value within the City and necessitate a corresponding increase in the annual tax rate. See “-COVID-19 Global Pandemic” below. Debt Service Funds Pursuant to the Bond Resolution, the City will establish a debt service fund for the Bonds (the “Debt Service Fund”), which will be established as a separate fund to be maintained distinct from all other funds of the City. All taxes levied by the City pursuant to the Bond Resolution for the payment of the principal of and interest and premium (if any) on the Bonds will be deposited in the Debt Service Fund by the City promptly upon receipt from the County. The Debt Service Fund is pledged for the payment of the principal of and interest and premium (if any) on the Bonds, when and as the same become due. The City will transfer amounts in the Debt Service Fund, to the extent necessary, to pay the principal of and interest on the Bonds as the same become due and payable, to the Paying Agent, as required to pay the principal of and interest and premium (if any) on the Bonds.

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If, after payment in full of the Bonds, any amounts remain on deposit in the Debt Service Fund, the City shall transfer such amounts to its General Fund, to be applied solely in a manner that is consistent with the requirements of applicable state and federal tax law. Limited Obligation The Bonds are payable solely from the proceeds of an ad valorem tax levied by the City, and collected by the County, for the payment of principal and interest on the Bonds. Although the County is obligated to collect the ad valorem tax for the payment of the Bonds, the Bonds are not a debt of the County. COVID-19 Global Pandemic General. The spread of the novel strains of coronavirus that causes the disease known as COVID-19 (“COVID-19”) and local, state, and federal actions in response to COVID-19, is having a significant impact on the economy and on the City’s operations and finances. On February 11, 2020, the World Health Organization (“WHO”) announced the official name for the outbreak of COVID-19, an upper respiratory tract illness. COVID-19 has since spread across the globe. The COVID-19 pandemic has had an adverse effect on, among other things, the world economy, global supply chain, international travel, and a number of travel-related industries. The temporary and permanent business closures caused by the COVID-19 pandemic have led to a stark increase in unemployment across the County and the nation. Depending on the length and the breadth of the impacts of the COVID-19 pandemic, the economic costs may be very significant for the City and the region’s economy. On June 8, 2020, the National Bureau of Economic Research announced that the United States of America (the “U.S.”) officially entered into a recession in February 2020. In addition, capital markets in the United States and globally have been volatile. In mid-March 2020, based on guidance and directives from the State and public health agencies, all counties in the Bay Area and the City implemented and revised Shelter-in-Place (“Shelter-in-Place”) emergency orders or directives, which directed individuals to stay home, except for limited travel for the conduct of essential services. Most retail establishments (including restaurants, bars and nightclubs, entertainment venues and gyms) were closed in response to the Shelter-in-Place orders or directives. The Governor of the State announced similar Shelter-in-Place emergency orders effective for the entire State, which were lifted in June 2021. In December 2020, two vaccines were approved for emergency use in the United States and vaccinations began in California. A third vaccine was approved for emergency use in February 2021. In July 2021, as a result of the Delta variant, all Bay Area counties and the City issued recommendations that all persons wear masks in indoor settings, regardless of vaccination status, and the recommendation became mandatory in August 2021. Also in August 2021, booster shots became available to all Americans. In January 2022, the Omicron variant surged in the State, and began to wane in February 2022 and on February 16, 2022, the State and the City lifted the indoor bask mandate in most public settings for vaccinated people. Impacts of COVID-19 Emergency Uncertain. The COVID-19 pandemic is still ongoing; however, indications are strong that the pandemic is transitioning to its endemic stage though its dynamic nature leads to uncertainties. There are many variables that will continue to contribute to the economic impact of the COVID-19 pandemic and the recovery, including the length of time social distancing measures are in place, the effectiveness of State and Federal governments’ relief programs and the timing for the containment and treatment of COVID-19. The ultimate impact of COVID-19 on the City’s operations and finances is not fully known, and it may be some

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time before the full impact of the COVID-19 pandemic is known. General Obligation Bonds Secured by Ad Valorem Tax Revenues. Notwithstanding the impacts the COVID-19 emergency may have on the economy in the State, the County and the City or on the City’s general purpose revenues, the Bonds described herein are voter-approved general obligations of the City payable solely from the levy and collection of ad valorem property taxes, unlimited as to rate or amount, and are not payable from the general fund of the City. The City cannot predict the impacts that the Coronavirus emergency might have on local property values or tax collections. See “SECURITY FOR THE BONDS – Ad Valorem Taxes” and “PROPERTY TAXATION – Tax Levies and Delinquencies” herein. See “APPENDIX A – FINANCIAL, ECONOMIC AND DEMOGRAPHIC INFORMATION FOR THE CITY OF CAMPBELL AND SANTA CLARA COUNTY” for additional information about the impact of COVID-19 on the City. [Remainder of page intentionally left blank.]

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PROPERTY TAXATION Property Tax Collection Procedures In California, property which is subject to ad valorem taxes is classified as “secured” or “unsecured.” The “secured roll” is that part of the assessment roll containing state assessed public utilities’ property and property, the taxes on which are a lien on real property sufficient, in the opinion of the county assessor, to secure payment of the taxes. A tax levied on unsecured property does not become a lien against such unsecured property, but may become a lien on certain other property owned by the taxpayer. Every tax which becomes a lien on secured property has priority over all other liens arising pursuant to State law on such secured property, regardless of the time of the creation of the other liens. Secured and unsecured property are entered separately on the assessment roll maintained by the county assessor. The method of collecting delinquent taxes is substantially different for the two classifications of property. Property taxes on the secured roll are due in two installments, on November 1 and February 1 of each fiscal year. If unpaid, such taxes become delinquent after December 10 and April 10, respectively, and a 10% penalty attaches to any delinquent payment. In addition, property on the secured roll with respect to which taxes are delinquent is declared tax defaulted on or about June 30 of the fiscal year. Such property may thereafter be redeemed by payment of the delinquent taxes and a delinquency penalty, plus a redemption penalty of 1.5% per month to the time of redemption. If taxes are unpaid for a period of five years or more, the property is subject to sale by the County. Property taxes are levied for each fiscal year on taxable real and personal property situated in the taxing jurisdiction as of the preceding January 1. A bill enacted in 1983, SB813 (Statutes of 1983, Chapter 498), however, provided for the supplemental assessment and taxation of property as of the occurrence of a change of ownership or completion of new construction. Thus, this legislation eliminated delays in the realization of increased property taxes from new assessments. As amended, SB813 provided increased revenue to taxing jurisdictions to the extent that supplemental assessments of new construction or changes of ownership occur subsequent to the January 1 lien date and result in increased assessed value. Property taxes on the unsecured roll are due on the January 1 lien date and become delinquent, if unpaid on the following August 31. A 10% penalty is also attached to delinquent taxes in respect of property on the unsecured roll, and further, an additional penalty of 1.5% per month accrues with respect to such taxes beginning the first day of the third month following the delinquency date. The taxing authority has four ways of collecting unsecured personal property taxes: (1) a civil action against the taxpayer; (2) filing a certificate in the office of the county clerk specifying certain facts in order to obtain a judgment lien on certain property of the taxpayer; (3) filing a certificate of delinquency for record in the county recorder’s office, in order to obtain a lien on certain property of the taxpayer; and (4) seizure and sale of personal property, improvements or possessory interests belonging or assessed to the assessee. The exclusive means of enforcing the payment of delinquent taxes in respect of property on the secured roll is the sale of the property securing the taxes for the amount of taxes which are delinquent.

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Taxation of State-Assessed Utility Property The State Constitution provides that most classes of property owned or used by regulated utilities are assessed by the State Board of Equalization (“SBE”) and taxed locally. Property valued by the SBE as an operating unit in a primary function of the utility taxpayer is known as “unitary property,” a concept designed to permit assessment of the utility as a going concern rather than assessment of each individual element of real and personal property owned by the utility taxpayer. State-assessed unitary and “operating nonunitary” property (which excludes nonunitary property of regulated railways) is allocated to the counties based on the situs of the various components of the unitary property. Except for unitary property of regulated railways and certain other excepted property, all unitary and operating nonunitary property is taxed at special county-wide rates and tax proceeds are distributed to taxing jurisdictions according to statutory formulae generally based on the distribution of taxes in the prior year. Assessed Valuation Assessed Valuation History. The following is a table summarizing the historical assessed valuation of the taxable property in the City. Table 1 CITY OF CAMPBELL Assessed Valuations of All Taxable Property Fiscal Years 2012-13 to 2021-22 Fiscal Year Local Secured Utility Unsecured Total Percent Change 2012-13 $6,200,714,942 $145,750 $280,367,332 $6,481,228,024 --% 2013-14 6,950,990,912 145,750 284,251,723 7,235,388,385 11.6 2014-15 7,407,865,106 172,250 288,458,347 7,696,495,703 6.4 2015-16 7,957,558,231 172,250 273,569,603 8,231,300,084 6.9 2016-17 8,567,685,262 172,250 290,398,591 8,858,256,103 7.6 2017-18 9,202,915,246 172,250 276,228,712 9,479,316,208 7.0 2018-19 9,910,024,537 238,500 276,847,459 10,187,110,496 7.5 2019-20 10,767,752,914 238,500 295,779,677 11,063,771,091 8.6 2020-21 11,489,292,015 238,500 318,166,705 11,807,697,220 6.7 2021-22 12,008,936,685 238,500 363,425,707 12,372,600,892 4.8 Source: Santa Clara County Auditor-Controller’s Office; California Municipal Statistics, Inc. Factors Relating to Increases/Decreases in Assessed Value. As indicated in the previous table, assessed valuations are subject to change in each year. Increases or decreases in assessed valuation result from a variety of factors including but not limited to general economic conditions, supply and demand for real property in the area, government regulations such as zoning, and natural disasters such as earthquakes, fires, floods and droughts. Wildfires. Wildfires have occurred in recent years in different regions of the State, the most destructive of which have burned thousands of acres and destroyed thousands of homes and structures. Many of these fires have originated in wildlands adjacent to urban areas. The City cannot predict or make any representations regarding the effects that natural disasters including but not limited to earthquakes, fires, floods, droughts and related conditions may have on the value of taxable property within the City, or to what extent the effects said disasters might have had on economic activity in the City or throughout the State. See also “SECURITY FOR THE BONDS – COVID-19 Global Pandemic.”

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Earthquakes. According to the HayWired Earthquake Scenario - Earthquake Hazards Report by the U.S. Geological Survey, there is a 33% chance that an earthquake with a magnitude of 6.7 or greater will occur in the Bay Area before 2043. The San Andreas Fault, the Hayward-Rodgers Creek Fault and the Calaveras Fault pose the greatest earthquake threat, because they have high quake odds and run through the Santa Clara Valley region's urban core. However, there are also smaller faults located closer to the City that also have the potential to cause earthquakes. There are no Alquist-Priolo earthquake fault zones in the City. Flooding. Only a very small portion of the City is subject to flooding. The City operates and maintains a storm water drainage system and cooperates with surrounding jurisdictions and Santa Clara County to provide regional storm drainage. Property Tax Base Transfer Ballot Measure. On November 3, 2020, State voters approved a constitutional amendment entitled Property Tax Transfers, Exemptions and Revenue for Wildfire Agencies and Counties Amendment (“Proposition 19”), which will: (i) expand special rules that give property tax savings to homeowners that are over the age of 55, severely disabled, or whose property has been impacted by a natural disaster or contamination, when they buy a different home; (ii) narrow existing special rules for inherited properties; and (iii) broaden the scope of legal entity ownership changes that trigger reassessment of properties. The City cannot make any assurance as to what effect the implementation of Proposition 19 will have on assessed valuation of real property in the City.

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Assessed Valuation by Land Use. The following table shows the land use of parcels in the City, according to assessed valuation. As shown, the majority of land in the City is used for residential purposes. Table 2 CITY OF CAMPBELL Assessed Valuation and Parcels by Land Use Fiscal Year 2021-22 2021-22 % of No. of % of Non-Residential: Assessed Valuation (1) Total Parcels Total Commercial/Office $2,041,744,559 17.00% 511 4.14% Industrial 620,373,754 5.17 257 2.08 Government/Social/Institutional 20,980,330 0.17 65 0.53 Miscellaneous 57,907,236 0.48 44 0.36 Subtotal Non-Residential $2,741,005,879 22.82% 877 7.11% Residential: Single Family Residence $5,935,415,378 49.42% 7,666 62.11% Condominium/Townhouse 1,664,839,051 13.86 2,844 23.04 Mobile Home 14,086,866 0.12 108 0.87 2-4 Residential Units 522,038,089 4.35 639 5.18 5+ Residential Units/Apartments 1,087,034,807 9.05 120 0.97 Subtotal Residential $9,223,414,191 76.80% 11,377 92.17% Vacant Parcels $44,516,615 0.37% 89 0.72% Total $12,008,936,685 100.00% 12,343 100.00% ___________________________ (1) Local Secured Assessed Valuation; excluding tax-exempt property. Source: California Municipal Statistics, Inc.

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Assessed Valuation of Single-Family Residential Parcels. The following table shows a breakdown of the assessed valuations of improved single-family residential parcels in the City, according to assessed valuation. Table 3 CITY OF CAMPBELL Per Parcel 2021-22 Assessed Valuation of Single-Family Homes No. of 2021-22 Average Median Parcels Assessed Valuation Assessed Valuation Assessed Valuation Single Family Residential 7,666 $5,935,415,378 $774,252 $717,626 2021-22 No. of % of Cumulative Total % of Cumulative Assessed Valuation Parcels (1) Total % of Total Valuation Total % of Total $0 - $99,999 729 9.510% 9.510% $54,222,770 0.914% 0.914% $100,000 - $199,999 543 7.083 16.593 76,942,854 1.296 2.210 $200,000 - $299,999 477 6.222 22.815 120,066,401 2.023 4.233 $300,000 - $399,999 580 7.566 30.381 205,328,460 3.459 7.692 $400,000 - $499,999 529 6.901 37.282 236,930,568 3.992 11.684 $500,000 - $599,999 420 5.479 42.760 230,741,725 3.888 15.571 $600,000 - $699,999 463 6.040 48.800 302,974,337 5.105 20.676 $700,000 - $799,999 518 6.757 55.557 389,429,399 6.561 27.237 $800,000 - $899,999 536 6.992 62.549 455,524,415 7.675 34.912 $900,000 - $999,999 524 6.835 69.384 497,838,132 8.388 43.299 $1,000,000 - $1,099,999 384 5.009 74.393 402,136,407 6.775 50.075 $1,100,000 - $1,199,999 331 4.318 78.711 379,716,021 6.397 56.472 $1,200,000 - $1,299,999 316 4.122 82.833 394,396,665 6.645 63.117 $1,300,000 - $1,399,999 312 4.070 86.903 420,825,667 7.090 70.207 $1,400,000 - $1,499,999 253 3.300 90.203 366,636,842 6.177 76.384 $1,500,000 - $1,599,999 179 2.335 92.538 276,221,561 4.654 81.038 $1,600,000 - $1,699,999 137 1.787 94.326 225,908,602 3.806 84.844 $1,700,000 - $1,799,999 104 1.357 95.682 181,388,542 3.056 87.900 $1,800,000 - $1,899,999 88 1.148 96.830 162,524,023 2.738 90.638 $1,900,000 - $1,999,999 73 0.952 97.782 142,184,933 2.396 93.034 $2,000,000 and greater 170 2.218 100.000 413,477,054 6.966 100.000 7,666 100.000% $5,935,415,378 100.000% ____________________ (1) Improved single family residential parcels. Excludes condominiums and parcels with multiple family units. Source: California Municipal Statistics, Inc. Alternative Method of Tax Apportionment - Teeter Plan The County operates on a Teeter Plan whereby taxing entities, including the City, receive 100% of their secured ad valorem property tax levy assessed by the County. The Teeter Plan will remain in effect unless the County orders its discontinuance or unless the County receives a petition for its discontinuance joined in by resolutions adopted by at least two-thirds of the participating revenue districts in the County, in which event the Board of Supervisors of the County shall order discontinuance of the Teeter Plan effective at the commencement of the subsequent fiscal year. Additionally, the County may discontinue the procedures under the Teeter Plan with respect to any political subdivision in the County if the rate of secured property tax delinquency in that political subdivision in any year exceeds 3% of the total of all taxes and assessments levied on the secured rolls for that political subdivision. If the Teeter Plan is discontinued subsequent to its implementation, only those secured property taxes actually collected would be allocated to political subdivisions (including the City) for which the County acts as the tax-levying or tax-collecting agency. For further information, please see APPENDIX A – “FINANCIAL, ECONOMIC AND DEMOGRAPHIC INFORMATION FOR THE

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CITY OF CAMPBELL AND SANTA CLARA COUNTY – CITY FINANCIAL INFORMATION – Ad Valorem Property Taxes” herein. Under the Teeter Plan, the County funds current year delinquencies from certain moneys in its treasury, including, currently, tax payments from prior years’ delinquencies. There can be no assurance that the County will continue to utilize the Teeter Plan with respect to the tax levy for the Bonds or for the City. Further, the amounts expected to be available to the County may not be sufficient to fund all delinquencies in current tax levies, in which case the City may not receive the full amount required for the payment of debt service on the Bonds on a timely basis. Property tax delinquencies may be impacted by economic and other factors beyond the City’s control or the control of the County, including the ability or willingness of property owners to pay property taxes during an economic recession or depression. An economic recession or depression could be caused by many factors outside the control of the City, including high interest rates, reduced consumer confidence, reduced real wages or reduced economic activity as a result of the spread of COVID-19 or other pandemic or natural or manmade disaster. Pursuant to Revenue and Taxation Code Section 4985.2, the Treasurer-Tax Collector of the respective County may cancel any penalty, costs or other charges resulting from tax delinquency upon a finding that the late payment is due to reasonable cause and circumstances beyond the taxpayer’s control, and occurred notwithstanding the exercise of ordinary care in the absence of willful neglect, provided the property taxes are paid within four fiscal years of such taxes coming due. Appeals of Assessed Value There are two types of appeals of assessed values that could adversely impact property tax revenues within the City. Appeals may be based on Proposition 8 of November 1978, which requires that for each January 1 lien date, the taxable value of real property must be the least of its base year value, annually adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution, or its full cash value, taking into account reductions in value due to damage, destruction, depreciation, obsolescence, removal of property or other factors causing a decline in value. Under California law, property owners may apply for a Proposition 8 reduction of their property tax assessment by filing a written application, in form prescribed by the SBE, with the County board of equalization or assessment appeals board. In most cases, the appeal is filed because the applicant believes that present market conditions (such as prevailing conditions in the residential home market) cause the property to be worth less than its current assessed value. Proposition 8 reductions may also be unilaterally applied by the County Assessor. Any reduction in the assessment ultimately granted as a result of such appeal applies to the year for which application is made and during which the written application was filed. These reductions are subject to yearly reappraisals and are adjusted back to their original values when market conditions improve. Once the property has regained its prior value, adjusted for inflation, it once again is subject to the annual inflationary factor growth rate allowed under Article XIIIA. A second type of assessment appeal involves a challenge to the base year value of an assessed property. Appeals for reduction in the base year value of an assessment, if successful, reduce the assessment for the year in which the appeal is taken and prospectively thereafter.

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The base year is determined by the completion date of new construction or the date of change of ownership. Any base year appeal must be made within four years of the change of ownership or new construction date. The City cannot predict the changes in assessed values that might result from pending or future appeals by taxpayers. Any reduction in aggregate City assessed valuation due to appeals, as with any reduction in assessed valuation due to other causes, will cause the tax rate levied to repay the Bonds to increase accordingly, so that the fixed debt service on the Bonds (and other outstanding general obligation bonds, if any) may be paid. Tax Rates The table below shows historical property tax rates within the City: Table 4 CITY OF CAMPBELL TYPICAL TAX RATE PER $100 ASSESSED VALUATION (TRA 10-005 – 2021-22 Assessed Valuation: $4,292,383,998(1)) Fiscal Year 2017-18 Fiscal Year 2018-19 Fiscal Year 2019-20 Fiscal Year 2020-21 Fiscal Year 2021-22 General $1.0000 $1.0000 $1.0000 $1.0000 $1.0000 County Retirement .0388 .0388 .0388 .0388 .0388 County Hospital and Housing Bonds .0209 .0177 .0169 .0069 .0188 County Library Retirement .0024 .0024 .0024 .0024 .0024 City of Campbell Bonds - - .0100 .0100 .0175 Campbell Union School District Bonds .0672 .0672 .0672 .0672 .0672 Campbell Union High School District Bonds .0519 .0487 .0436 .0439 .0421 West Valley-Mission CCD .0200 .0198 .0296 .0311 .0304 Total Tax Rate $1.2012 $1.1946 $1.2085 $1.2003 $1.2172 Santa Clara Valley Water District - State Water Project $.0062 $.0042 $.0041 $.0037 $.0051 Total Land Only $.0062 $.0042 $.0041 $.0037 $.0051 (1) 34.71% of the City's total assessed valuation. Source: California Municipal Statistics, Inc.

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Major Taxpayers The following table shows the twenty largest taxpayers in the City as determined by their secured assessed valuations in 2021-22. Table 5 CITY OF CAMPBELL Largest 2021-22 Local Secured Taxpayers 2021-22 % of Property Owner Primary Land Use Assessed Valuation Total (1) 1. Pruneyard Regency LLC Shopping Center $ 214,701,500 1.79% 2. Pruneyard Office Investors LLC Office Building 162,005,163 1.35 3. AG-SW Hamilton Plaza Owner LP Office Building 149,829,510 1.25 4. 675 Creekside Owner LLC Office Building 140,440,038 1.17 5. Revres LLC Apartments 124,958,985 1.04 6. Parc Residences LLC Apartments 110,931,615 0.92 7. Bravista Parcelco I, II, III & IV LLC Industrial 103,061,639 0.86 8. Campbell Technology Park LLC Industrial 85,851,070 0.71 9. Raintree Campbell LLC Apartments 70,499,682 0.59 10. SHI-III Campbell LP Retail and Apartments 70,497,287 0.59 11. Railway Campbell LLC Apartments 70,427,139 0.59 12. Hamilton Plaza Investors LLC Shopping Center 60,241,511 0.50 13. Bay Apartment Communities Inc. Apartments 57,999,809 0.48 14. Marc W. Buzolich, Trustee Shopping Center 57,851,735 0.48 15. Pacific Oak SOR II Office Building 56,322,774 0.47 16. Campbell Foothills Venture LLC Hotel 51,140,265 0.43 17. Essex The Commons LP Apartments 50,294,883 0.42 18. Nido Campbell LLC Apartments 48,132,628 0.40 19. Allergen Sales LLC Industrial 46,812,746 0.39 20. US BWG San Tomas Plaza LLC (Lessor) Shopping Center 34,196,591 0.28 $1,766,196,570 14.71% ______________________ (1) 2021-22 local secured assessed valuation: $12,008,936,685. Source: California Municipal Statistics, Inc. Direct and Overlapping Debt Set forth below is a direct and overlapping debt report (the “Debt Report”) prepared by California Municipal Statistics, Inc. The Debt Report is included for general information purposes only. The City has not reviewed the Debt Report for completeness or accuracy and makes no representation in connection therewith. The Debt Report generally includes long-term obligations sold in the public credit markets by public agencies whose boundaries overlap the boundaries of the City in whole or in part. Such long-term obligations generally are not payable from revenues of the City (except as indicated) nor are they necessarily obligations secured by land within the City. In many cases, long-term obligations issued by a public agency are payable only from the general fund or other revenues of such public agency.

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The contents of the Debt Report are as follows: (1) the first column indicates the public agencies which have outstanding debt as of the date of the Debt Report and whose territory overlaps the City; (2) the second column shows the percentage that the City’s assessed valuation represents of the total assessed valuation of each public agency identified in the first column; and (3) the third column is an apportionment of the dollar amount of each public agency’s outstanding debt to property in the City, as determined by multiplying the total outstanding debt of each agency by the percentage of the City’s assessed valuation represented in the second column. Table 6 CITY OF CAMPBELL STATEMENT OF DIRECT AND OVERLAPPING BONDED DEBT 2021-22 Assessed Valuation: $12,372,600,892 DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 4/1/22 Santa Clara County 2.147% $ 24,614,496 West Valley-Mission Community College District 7.502 41,823,650 Campbell Union High School District 21.348 79,284,337 Cambrian School District 31.341 19,108,590 Campbell Union School District 31.579 65,049,369 Moreland School District 12.690 15,056,336 City of Campbell 100.000 17,200,000(1) Midpeninsula Regional Open Space District 0.036 30,447 Santa Clara Valley Water District Benefit Assessment District 2.147 1,033,781 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $263,201,006 DIRECT AND OVERLAPPING GENERAL FUND DEBT: Santa Clara County General Fund Obligations 2.147% $26,667,122 Santa Clara County Pension Obligation Bonds 2.147 7,206,158 Santa Clara County Board of Education Certificates of Participation 2.147 39,075 Santa Clara County Vector Control District Certificates of Participation 2.147 37,895 West Valley-Mission Community College District General Fund Obligations 7.502 3,739,747 Campbell Union High School District General Fund Obligations 21.348 3,415,680 Campbell Union School District General Fund Obligations 31.579 642,633 City of Campbell Certificates of Participation 100.000 5,850,843(1) Midpeninsula Regional Open Space District General Fund Obligations 0.036 35,894 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $47,635,047 Less: Santa Clara County supported obligations 388,151 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $47,246,896 OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 100.000% $16,050,000 GROSS COMBINED TOTAL DEBT $326,886,053 (2) NET COMBINED TOTAL DEBT $326,497,902 Ratios to 2021-22 Assessed Valuation: Direct Debt ($17,200,000) ...................................................... 0.14% Total Direct and Overlapping Tax and Assessment Debt ....... 2.13% Total Direct Debt ($23,050,843) ............................................ 0.19% Gross Combined Total Debt .................................................... 2.64% Net Combined Total Debt ........................................................ 2.64% Ratios to Redevelopment Successor Agency Incremental Valuation ($1,391,224,316): Total Overlapping Tax Increment Debt ................................... 1.15% (1) Excludes the Bonds issued for sale hereunder. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease obligations. Source: California Municipal Statistics, Inc.

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CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING CITY REVENUES AND APPROPRIATIONS Principal of and interest on the Bonds are payable from the proceeds of an ad valorem tax levied by the County, as directed by the City, for the payment thereof. See “THE BONDS” and “SECURITY FOR THE BONDS.” Articles XIIIA, XIIIB, XIIIC and XIIID of the State Constitution, Propositions 62, 111, 218, 26, 1A and 22, and certain other provisions of law discussed below are included in this section to describe the potential effect of these Constitutional and statutory measures on the ability of the County to levy, and the City to spend, tax proceeds for operating and other purposes, and it should not be inferred from the inclusion of such materials that these laws impose any limitation on the ability of the County to levy taxes for payment of the Bonds. The tax levied by the County, as directed by the City, for payment of the Bonds was approved by the City’s voters in compliance with Article XIIIA and all applicable laws. Article XIIIA of the State Constitution On June 6, 1978, California voters approved Proposition 13, which added Article XIIIA to the State Constitution. Article XIIIA, as amended, limits the amount of any ad valorem tax on real property to one percent of the full cash value thereof, except that additional ad valorem taxes may be levied to pay debt service (i) on indebtedness approved by the voters prior to July 1, 1978, (ii) on bonded indebtedness approved by a two-thirds vote on or after July 1, 1978, for the acquisition or improvement of real property or (iii) bonded indebtedness incurred by a school district, community college district or county office of education for the construction, reconstruction, rehabilitation or replacement of school facilities, including the furnishing and equipping of school facilities or the acquisition or lease of real property for school facilities, approved by 55 percent of the voters voting on the proposition. Article XIIIA defines full cash value to mean “the county assessor’s valuation of real property as shown on the 1975-76 tax bill under ‘full cash value,’ or thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment.” This full cash value may be increased at a rate not to exceed two percent per year to account for inflation. Article XIIIA has subsequently been amended to permit reduction of the “full cash value” base in the event of declining property values caused by damage, destruction or other factors, to provide that there would be no increase in the “full cash value” base in the event of reconstruction of property damaged or destroyed in a disaster, and in other minor or technical ways. Legislation Implementing Article XIIIA Legislation has been enacted and amended a number of times since 1978 to implement Article XIIIA. Under current law, local agencies are no longer permitted to levy directly any property tax (except to pay voter-approved indebtedness). The one percent property tax is automatically levied by the County and distributed according to a formula among taxing agencies. The formula apportions the tax roughly in proportion to the relative shares of taxes levied prior to 1989. Increases of assessed valuation resulting from reappraisals of property due to new construction, change in ownership or from the two percent annual adjustment are allocated among the various jurisdictions in the “taxing area” based upon their respective “situs.” Any such allocation made to a local agency continues as part of its allocation in future years.

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All taxable property is shown at full market value on the tax rolls. Consequently, the tax rate is expressed as $1 per $100 of taxable value. All taxable property value included in this Official Statement is shown at 100 percent of market value (unless noted differently) and all tax rates reflect the $1 per $100 of taxable value. Article XIIIB of the State Constitution In addition to the limits Article XIIIA imposes on property taxes that may be collected by local governments, certain other revenues of the State and most local governments are subject to an annual “appropriations limit” imposed by Article XIIIB which effectively limits the amount of such revenues those entities are permitted to spend. Article XIIIB, approved by the voters in June 1979, was modified substantially by Proposition 111 in 1990. The appropriations limit of each government entity applies to “proceeds of taxes,” which consist of tax revenues, State subventions and certain other funds, including proceeds from regulatory licenses, user charges or other fees to the extent that such proceeds exceed “the cost reasonably borne by such entity in providing the regulation, product or service.” “Proceeds of taxes” excludes tax refunds and some benefit payments such as unemployment insurance. No limit is imposed on the appropriation of funds which are not “proceeds of taxes,” such as reasonable user charges or fees, and certain other non-tax funds. Article XIIIB also does not limit appropriation of local revenues to pay debt service on Bonds existing or authorized by January 1, 1979, or subsequently authorized by the voters, appropriations required to comply with mandates of courts or the federal government, appropriations for qualified capital outlay projects, and appropriation by the State of revenues derived from any increase in gasoline taxes and motor vehicle weight fees above January 1, 1990, levels. The appropriations limit may also be exceeded in case of emergency; however, the appropriations limit for the next three years following such emergency appropriation must be reduced to the extent by which it was exceeded, unless the emergency arises from civil disturbance or natural disaster declared by the Governor, and the expenditure is approved by two-thirds of the legislative body of the local government. The State and each local government entity has its own appropriations limit. Each year, the limit is adjusted to allow for changes, if any, in the cost of living, the population of the jurisdiction, and any transfer to or from another government entity of financial responsibility for providing services. Proposition 111 requires that each agency’s actual appropriations be tested against its limit every two years. If the aggregate “proceeds of taxes” for the preceding two-year period exceeds the aggregate limit, the excess must be returned to the agency’s taxpayers through tax rate or fee reductions over the following two years. The City has never exceeded its appropriations limit. Articles XIIIC and XIIID of the State Constitution General. On November 5, 1996, the voters of the State approved Proposition 218, known as the “Right to Vote on Taxes Act.” Proposition 218 adds Articles XIIIC and XIIID to the California Constitution and contains a number of interrelated provisions affecting the ability of the City to levy and collect both existing and future taxes, assessments, fees and charges. On November 2, 2010, California voters approved Proposition 26, entitled the “Supermajority Vote to Pass New Taxes and Fees Act.” Section 1 of Proposition 26 declares that Proposition 26 is intended to limit the ability of the State Legislature and local government to circumvent existing restrictions on increasing taxes by defining the new or expanded taxes as

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“fees.” Proposition 26 amended Articles XIIIA and XIIIC of the State Constitution. The amendments to Article XIIIA limit the ability of the State Legislature to impose higher taxes (as defined in Proposition 26) without a two-thirds vote of the Legislature. The amendments to Article XIIIC define “taxes” that are subject to voter approval as “any levy, charge, or exaction of any kind imposed by a local government,” with certain exceptions. Taxes. Article XIIIC requires that all new local taxes be submitted to the electorate before they become effective. Taxes for general governmental purposes of the City (“general taxes”) require a majority vote; taxes for specific purposes (“special taxes”), even if deposited in the City’s General Fund, require a two-thirds vote. Property-Related Fees and Charges. Article XIIID also adds several provisions making it generally more difficult for local agencies to levy and maintain property-related fees, charges, and assessments for municipal services and programs. Reduction or Repeal of Taxes, Assessments, Fees and Charges. Article XIIIC also removes limitations on the initiative power in matters of reducing or repealing local taxes, assessments, fees or charges. No assurance can be given that the voters of the City will not, in the future, approve an initiative or initiatives which reduce or repeal local taxes, assessments, fees or charges currently comprising a substantial part of the City’s General Fund. If such repeal or reduction occurs, the City’s ability to pay debt service on the Bonds could be adversely affected. Burden of Proof. Article XIIIC provides that local government “bears the burden of proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax, that the amount is no more than necessary to cover the reasonable costs of the governmental activity, and that the manner in which those costs are allocated to a payor bear a fair or reasonable relationship to the payor’s burdens on, or benefits received from, the governmental activity.” Similarly, Article XIIID provides that in “any legal action contesting the validity of a fee or charge, the burden shall be on the agency to demonstrate compliance” with Article XIIID. Judicial Interpretation of Proposition 218. The interpretation and application of Articles XIIIC and XIIID will ultimately be determined by the courts, and it is not possible at this time to predict with certainty the outcome of such determination. Proposition 62 Proposition 62 was adopted by the voters at the November 4, 1986, general election and (a) requires that any new or higher taxes for general governmental purposes imposed by local governmental entities such as the City be approved by a two-thirds vote of the governmental entity’s legislative body and by a majority vote of the voters of the governmental entity voting in an election on the tax, (b) requires that any special tax (defined as taxes levied for other than general governmental purposes) imposed by a local governmental entity be approved by a two-thirds vote of the voters of the governmental entity voting in an election on the tax, (c) restricts the use of revenues from a special tax to the purposes or for the service for which the special tax was imposed, (d) prohibits the imposition of ad valorem taxes on real property by local governmental entities except as permitted by Article XIIIA, (e) prohibits the imposition of transaction taxes and sales taxes on the sale of real property by local governmental entities, and (f) requires that any tax imposed by a local governmental entity on or after August 1, 1985, be ratified by a majority vote of the voters voting in an election on the tax within two years of the adoption of the initiative or be terminated by November 15, 1988.

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California appellate court cases have overturned the provisions of Proposition 62 pertaining to the imposition of taxes for general government purposes. However, the California Supreme Court upheld Proposition 62 in its decision on August 28, 1995, in Fresno County Transportation Authority v. Guardino. This decision reaffirmed the constitutionality of Proposition 62. Certain matters regarding Proposition 62 were not addressed in the Supreme Court’s decision, such as what remedies exist for taxpayers subject to a tax not in compliance with Proposition 62, and whether the decision applies to charter cities. The City has not experienced any substantive adverse financial impact as a result of the passage of this initiative. Proposition 1A; Proposition 22 Proposition 1A. Proposition 1A, proposed by the Legislature in connection with the State’s Fiscal Year 2004-05 Budget, approved by the voters in November 2004 and generally effective in Fiscal Year 2006-07, provided that the State may not reduce any local sales tax rate, limit existing local government authority to levy a sales tax rate or change the allocation of local sales tax revenues, subject to certain exceptions. Proposition 1A generally prohibited the State from shifting to schools or community colleges any share of property tax revenues allocated to local governments for any Fiscal Year, as set forth under the laws in effect as of November 3, 2004. Any change in the allocation of property tax revenues among local governments within a county had to be approved by two-thirds of both houses of the Legislature. Proposition 22. Proposition 22, entitled “The Local Taxpayer, Public Safety and Transportation Protection Act,” was approved by the voters of the State in November 2010. Proposition 22 eliminates or reduces the State’s authority to (i) temporarily shift property taxes from cities, counties and special districts to schools, (ii) use vehicle license fee revenues to reimburse local governments for State-mandated costs (the State will have to use other revenues to reimburse local governments), (iii) redirect property tax increment from redevelopment agencies to any other local government, (iv) use State fuel tax revenues to pay debt service on State transportation bonds, or (v) borrow or change the distribution of State fuel tax revenues. Possible Future Initiatives Articles XIIIA, XIIIB, XIIIC and XIIID and Propositions 62, 111, 218, 26, 1A and 22 were each adopted as measures that qualified for the ballot pursuant to the State’s initiative process. From time to time, other initiative measures could be adopted, further affecting revenues of the City or the City’s ability to expend revenues. The nature and impact of these measures cannot be anticipated by the City. [Remainder of page intentionally left blank.]

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LEGAL MATTERS Tax Exemption Federal Tax Status. In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to the qualifications set forth below, under existing law, the interest on the Bonds is excluded from gross income for federal income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax. The opinions set forth in the preceding paragraph are subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Tax Code") that must be satisfied subsequent to the issuance of the Bonds in order that the interest thereon be, and continue to be, excludable from gross income for federal income tax purposes. The City has made certain representations and covenants in order to comply with each such requirement. Inaccuracy of those representations, or failure to comply with certain of those covenants, may cause the inclusion of such interest in gross income for federal income tax purposes, which may be retroactive to the date of issuance of the Bonds. Tax Treatment of Original Issue Discount and Premium. If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is less than the amount payable at maturity thereof, then such difference constitutes “original issue discount” for purposes of federal income taxes and State of California personal income taxes. If the initial offering price to the public (excluding bond houses and brokers) at which a Bond is sold is greater than the amount payable at maturity thereof, then such difference constitutes “original issue premium” for purposes of federal income taxes and State of California personal income taxes. De minimis original issue discount and original issue premium is disregarded. Under the Tax Code, original issue discount is treated as interest excluded from federal gross income and exempt from State of California personal income taxes to the extent properly allocable to each owner thereof subject to the limitations described in the first paragraph of this section. The original issue discount accrues over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). The amount of original issue discount accruing during each period is added to the adjusted basis of such Bonds to determine taxable gain upon disposition (including sale, redemption, or payment on maturity) of such Bond. The Tax Code contains certain provisions relating to the accrual of original issue discount in the case of purchasers of the Bonds who purchase the Bonds after the initial offering of a substantial amount of such maturity. Owners of such Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Bonds with original issue discount, including the treatment of purchasers who do not purchase in the original offering to the public at the first price at which a substantial amount of such Bonds is sold to the public. Under the Tax Code, original issue premium is amortized on an annual basis over the term of the Bond (said term being the shorter of the Bond's maturity date or its call date). The amount of original issue premium amortized each year reduces the adjusted basis of the owner of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of original issue premium on a Bond is amortized each year over the term to maturity of the Bond on the basis of a constant interest rate compounded on each interest or principal payment date (with straight-line interpolations between compounding dates). Amortized bond premium is not deductible for federal income tax purposes. Owners of premium Bonds, including purchasers who do not purchase in the original offering, should consult their own tax advisors with respect to

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State of California personal income tax and federal income tax consequences of owning such Bonds. California Tax Status. In the further opinion of Bond Counsel, interest on the Bonds is exempt from California personal income taxes. Form of Opinion. Copies of the proposed form of opinion of Bond Counsel are attached hereto as APPENDIX C. Contingent Compensation. Jones Hall will receive compensation from the City contingent upon the sale and delivery of the Bonds. Other Tax Considerations Owners of the Bonds should also be aware that the ownership or disposition of, or the accrual or receipt of interest on, the Bonds may have federal or state tax consequences other than as described above. Bond Counsel expresses no opinion regarding any federal or state tax consequences arising with respect to the Bonds other than as expressly described above, including any opinion regarding federal tax consequences arising with respect to the ownership, sale or disposition of the Bonds, or the amount, accrual or receipt of interest on the Bonds. In addition, future legislation, if enacted into law, or clarification of the Tax Code may cause interest on the Bonds to be subject, directly or indirectly, to federal income taxation, or otherwise prevent owners of the Bonds from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such future legislation or clarification of the Tax Code may also affect the market price for, or marketability of, the Bonds. Prospective purchasers of the Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation, as to which Bond Counsel expresses no opinion. Continuing Disclosure The City will covenant for the benefit of owners of the Bonds to provide certain financial information and operating data relating to the City by not later than April 1 after the end of each fiscal year of the City (currently June 30), commencing with the report for the 2021-22 fiscal year (the “Annual Report”), and to provide notices of the occurrence of certain enumerated events. The specific nature of the information to be contained in an Annual Report or the notices of enumerated events is set forth in the form of Continuing Disclosure Certificate attached as APPENDIX D. These covenants will be made in order to assist the Underwriter (as defined below) in complying with Securities Exchange Commission Rule 15c2-12(b)(5) (the “Rule”). The City and its related governmental entities have previously entered into numerous disclosure undertakings under the Rule in connection with the issuance of long-term obligations. See Note 8 of the City’s Annual Comprehensive Financial Report attached to this Official Statement as APPENDIX B. During the last five years, the City failed to comply in certain respects with continuing disclosure obligations related to outstanding bonded indebtedness, specifically the City failed to file on a timely basis the City’s audited financial statements for fiscal year 2017-18 (unaudited financial statements in lieu of audit availability were timely filed for the City’s 2002 Refunding Certificates of Participation (Civic Center Project) but were filed five days late for the Campbell Joint Public Finance Authority 2016 Refunding Lease Revenue Bonds).

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Subsequently, the City has engaged NHA Advisors, LLC, as its dissemination agent, to remediate its prior instances of non-compliance, and to aid in compliance with its continuing disclosure undertakings. Neither the County nor any other entity other than the City shall have any obligation or incur any liability whatsoever with respect to the performance of the City’s duties regarding continuing disclosure. Absence of Material Litigation No litigation is pending or threatened concerning the validity of the Bonds, and a certificate to that effect will be furnished to the purchasers at the time of the original delivery of the Bonds. The City is not aware of any litigation pending or threatened questioning the political existence of the City or contesting the City’s ability to receive ad valorem taxes or to collect other revenues or contesting the City’s ability to issue and repay the Bonds. RATING Upon issuance of the Bonds, S&P Global Ratings, a business unit of Standard & Poor’s Financial Services LLC (“S&P”), will assign the Bonds a rating of “___.” The City has furnished to S&P information and material which has not been included in this Official Statement. Generally, rating agencies base their ratings on information and material so furnished and on investigations, studies and assumptions made by the rating agencies. The ratings reflect only the view of such organization and an explanation of the significance of such rating may be obtained from S&P. There is no assurance that the rating will continue for any given period of time or that they will not be revised downward or withdrawn entirely by such rating agency, if, in the judgment of such rating agency, circumstances so warrant. Any such downward revision or withdrawal of such rating may have an adverse effect on the market price of the Bonds. The City has covenanted in a Continuing Disclosure Certificate to file on the Municipal Securities Rulemaking Board’s Electronic Municipal Market Access website (“EMMA”) notices of any ratings changes on the Bonds. See “APPENDIX D – FORM OF CONTINUING DISCLOSURE CERTIFICATE” attached hereto. Notwithstanding such covenant, information relating to ratings changes on the Bonds may be publicly available from the rating agency prior to such information being provided to the City and prior to the date the City is obligated to file a notice of rating change on EMMA. Purchasers of the Bonds are directed to the ratings agency and its website and official media outlets for the most current ratings changes with respect to the Bonds after the initial issuance of the Bonds, MUNICIPAL ADVISOR The City has retained NHA Advisors, LLC, San Rafael, California, as its municipal advisor (the “Municipal Advisor”) in connection with the preparation of this Official Statement and with respect to the issuance of the Bonds. The Municipal Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or assume responsibility for the accuracy, completeness, or fairness of the information contained in this Official Statement. The

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Municipal Advisor is an independent registered municipal advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities. The Municipal Advisor’s compensation is contingent upon the delivery of the Bonds. UNDERWRITING Stifel, Nicolaus & Company, Incorporated (the “Underwriter”), has entered into a Bond Purchase Agreement with the City under which it will purchase the Bonds at a purchase price of $________________ (which is equal to the par amount of the Bonds, less an Underwriter’s discount of $_____________, and plus/less a net original issue premium/discount of $____________). The Underwriter will be obligated to take and pay for all of the Bonds if any are taken. The Underwriter intends to offer the Bonds to the public at the offering prices set forth on the inside cover page of this Official Statement. After the initial public offering, the public offering price may be varied from time to time by the Underwriter. [Remainder of page intentionally left blank.]

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EXECUTION The execution of this Official Statement and its delivery have been approved by the City Council. CITY OF CAMPBELL By: City Manager

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APPENDIX A FINANCIAL, ECONOMIC AND DEMOGRAPHIC INFORMATION FOR THE CITY OF CAMPBELL AND SANTA CLARA COUNTY Introduction The City of Campbell (the "City") is located in Santa Clara County (the "County") contiguous with the City of San Jose and 50 miles south of San Francisco. The City encompasses 6.7 square miles, is substantially built out, and serves a population of approximately 41,533 residents. The City is comprised of a mix of residential, office and commercial retail businesses. Population Population figures for the City, County and State for the last five years are shown in the following table. CITY OF CAMPBELL Population Estimates As of January 1 Year City of Campbell County of Santa Clara State of California 2017 41,878 1,937,008 39,352,398 2018 41,748 1,943,579 39,519,535 2019 41,977 1,944,733 39,605,361 2020 41,898 1,945,166 39,648,938 2021 41,533 1,934,171 39,466,855 Source: State Department of Finance estimates (as of January 1). City Government The City was incorporated March 28, 1952 as a general law city, and operates under a Council-Manager form of government that includes five council members elected at-large for a term of four years. The Mayor is selected each year by majority vote of the other Council members. The Council appoints the City Manager, City Attorney and City Clerk. The City Council members also serve as the governing board members of the Campbell Joint Public Finance Authority, the Successor Agency to the dissolved City of Campbell Redevelopment Agency, the Campbell Industrial Development Authority and the Campbell Lighting and Landscape District. The City provides the following services to its residents: police and contract fire protection; park and street lighting maintenance; recreational classes, services and cultural events; planning, zoning and building review and inspections; construction and maintenance of streets and roads; and leadership provided through general administrative services. Water, sewage, garbage and electric utilities are provided directly through other agencies not under the City’s jurisdiction.

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The City Council members are shown in the following table: Member Office Term Expires Paul Resnikoff Mayor November 2022 Anne Bybee Vice Mayor November 2022 Elizabeth Gibbons Council Member November 2022 Susan M. Landry Council Member November 2024 Sergio Lopez Council Member November 2024 CITY FINANCIAL INFORMATION Accounting Policies and Financial Reporting The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The City’s most recent audited financial statements for the fiscal year ending June 30, 2021, are attached as “APPENDIX B – ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY FOR THE FISCAL YEAR ENDED JUNE 30, 2021” to this Official Statement, which were prepared by the City and audited by Eide Bailly LLP, Menlo Park, California (the “Auditor”). The Annual Comprehensive Financial Report should be read in its entirety. The City has not requested nor did the City obtain permission from the Auditor to include the audited financial statements as an appendix to this Official Statement. Accordingly, the Auditor has not performed any post-audit review of the financial condition or operations of the City or the General Fund. In addition, the Auditor has not reviewed this Official Statement. The Governmental Accounting Standards Board (“GASB”) published its Statement No. 34 “Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments” on June 30, 1999. Statement No. 34 provides guidelines to auditors, state and local governments and special purpose governments such as school districts and public utilities, on new requirements for financial reporting for all governmental agencies in the United States. Generally, the basic financial statements and required supplementary information should include (i) Management’s Discussion and Analysis; (ii) government-wide financial statements prepared using the economic measurement focus and the accrual basis of accounting and fund financial statements prepared using both the current financial resources measurement focus and the modified accrual method of accounting (governmental funds) and funds using the economic measurement focus and the accrual basis of accounting (proprietary funds) and (iii) required supplementary information. The City’s financial statements are prepared in conformance with the requirements of Statement No. 34. Cybersecurity The City’s information technology infrastructure continuously faces cyber threats, including, but not limited to, hacking, viruses, malware, ransomware, and data breaches. The City

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takes cybersecurity very seriously and has operational controls and multiple security measures to safeguard City’s data and infrastructure. There have been no known cybersecurity breaches so far; however, no assurances can be given that the security and operational control measures will be successful in guarding against all cyber threats. For additional protection, the City carries cyber liability insurance through a joint powers authority, Plan JPA. The cyber liability program provides coverage for both first- and third-party claims. First-party coverage includes privacy regulatory claims, security breach response, business income loss, dependent business income loss, digital asset restoration costs, and cyber-extortion threats, while third-party coverage includes privacy liability, network security liability, and multimedia liability. Members work directly with the reinsurer to investigate and respond to claims. Based on its protections and available insurance coverage, the City does not believe that a cyberattack on the City’s information technology infrastructure would have a substantial impact on General Fund revenues. Impact of COVID-19 General. See “SECURITY FOR THE BONDS –COVID-19 Global Pandemic” in the main body of the Official Statement. The 2020-21 General Fund realized a deficiency of revenues over expenditures of $1.5 million, excluding transfers. General Fund revenues, excluding transfers, decreased $1.0 million from the previous year to $48.6 million. Property taxes increased $0.7 million, sales tax increased $1.0 million, and other taxes decreased $1.6 million. General Fund expenditures, excluding transfers, were $50.1 million, a decrease of $1.3 million from the previous year. The decrease was primarily due to decreased personnel costs. The General Fund’s fund balance at fiscal year-end was $20.9 million, a decrease of $1.4 million from the previous year. Committed and Assigned fund balances at year end were $4.3 million and $3.6 million, respectively. These balances are utilized to fund operational costs such as capital projects, compensated absences, and to maintain a reserve for PERS and OPEB related costs. Unassigned fund balance of $13.0 million serves as an additional reserve for unanticipated needs that may arise including a $9.0 million reserve for economic fluctuations and $2.6 million for emergencies. Impact on Future Fiscal Years. As a result of uncertainty about the timing and level of recovery from the COVID-19 pandemic, the City has revised its seven-year forecast. See “General Fund Budget” and “Long-Term Financial Plan” below.

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Comparative Financial Statements The following tables provide a recent history of the City’s Comparative Balance Sheet, and both a recent history of General Fund revenues, expenditures, transfers, and ending fund balances. As a result of the recent COVID-19 pandemic, the City does not believe that its recent history is representative of likely future results. CITY OF CAMPBELL GENERAL FUND BALANCE SHEET (Fiscal Year Ending June 30) (Dollar amounts in thousands) Actual Actual Actual Actual 2017-18 2018-19 2019-20 2020-21 ASSETS: Cash and investments $27,037,378 $27,105,975 $23,961,647 $16,093,295 Receivables: Accounts 533,663 588,595 909,918 611,460 Taxes 2,917,189 3,423,278 2,490,229 3,787,668 Interest 147,084 162,568 83,212 26,055 Notes and loans -- -- -- -- Due from other funds 1,536,465 1,030,724 1,007,315 5,939,132 Advance to Campbell Successor Agency -- -- -- -- Total assets 32,171,779 32,311,140 28,452,321 26,457,610 LIABILITIES: Accounts payable 1,890,612 1,751,383 2,479,865 1,546,076 Accrued payroll 1,364,519 1,555,197 1,404,590 2,013,068 Deposits payable 2,407,099 1,976,738 1,823,358 1,982,016 Due to other funds 28,776 -- -- -- Unearned revenue 9 -- -- -- Total liabilities 5,691,015 5,283,318 5,707,813 5,541,160 Deferred Inflows of Resources -- -- 472,000 -- FUND BALANCES (DEFICIT) Restricted -- -- -- -- Committed 21,592,089 21,743,948 5,192,639 4,296,174 Assigned 4,528,546 4,257,115 3,757,823 3,643,857 Unassigned 360,129 1,026,759 13,322,046 12,976,419 Total fund balances (Deficit) 26,480,764 27,027,822 22,272,508 20,916,450 Total liabilities and fund balances $32,171,779 $32,311,140 $28,452,321 $26,457,610 Source: City of Campbell, Annual Comprehensive Financial Reports.

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CITY OF CAMPBELL STATEMENT OF GENERAL FUND REVENUES, EXPENDITURES, TRANSFERS AND BALANCES (Fiscal Year Ending June 30) (Dollar amounts in thousands) Actual Actual Actual Actual 2017-18 2018-19 2019-20 2020-21 REVENUES: Property taxes $14,037,856 $15,646,867 $17,248,696 $17,950,698 Sales and use taxes 14,859,014 15,684,222 13,493,745 14,478,163 Other taxes 9,698,919 9,539,163 7,962,879 6,375,526 Special assessments -- -- -- -- Licenses and permits 3,214,847 3,232,524 3,714,070 4,493,838 Fines and forfeitures 345,627 704,030 694,347 547,469 Investment income 180,905 998,446 542,847 (8,137) Rents and leases 2,845,241 2,949,774 2,554,703 1,927,211 Intergovernmental 243,496 307,567 525,130 914,806 Charges for services 3,968,561 3,730,189 2,573,117 1,762,593 Project revenues -- -- -- -- Donations 66,585 65,516 69,602 -- Parkland dedication fees -- -- -- -- Miscellaneous revenues 225,765 211,569 252,859 162,023 TOTAL REVENUES 49,686,816 53,069,867 49,631,995 48,604,190 EXPENDITURES: General government 6,832,027 7,245,353 8,189,834 7,262,628 Recreation 6,235,452 6,663,662 5,854,410 4,018,010 Community development 2,991,056 3,114,633 3,147,352 2,689,081 Public safety 25,711,074 27,275,040 28,960,914 31,052,874 Public works 5,855,400 5,212,141 5,271,033 5,044,678 Capital outlay -- -- -- -- Debt service-principal -- -- -- -- Debt service-interest and fiscal charges -- -- -- -- TOTAL EXPENDITURES 47,625,009 49,510,829 51,423,543 50,067,271 Excess Revenues Over (Under) Expenditures 2,061,807 3,559,038 (1,791,548) (1,463,081) OTHE FINANCING SOURCES (USES) Transfers in (1) 1,462,489 1,294,226 974,801 5,364,551 Transfers out (5,967,637) (4,306,206) (3,938,567) (5,257,528) TOTAL OTHER FINANCING SOURCES (USES) (4,505,148) (3,011,980) (2,963,766) 107,023 Net Change in Fund Balance (2,443,341) 547,058 (4,755,314) (1,356,058) Fund Balance, July 1 28,924,105 26,480,764 27,027,822 22,272,508 Prior Period Adjustment -- -- -- -- Fund Balance, June 30* $26,480,764 $27,027,822 $22,272,508 $20,916,450 * Totals may not add due to rounding. (1) For fiscal year 2020-21: • $1.3 million of this amount represents recurring operational support from funds outside the General Fund for overhead expenses or minor equipment purchases. • $4.1 million represents one-time and limited-term transfers from funds outside the General Fund to balance the General Fund during the COVID-19 pandemic; $2.2 million was funded with ARPA moneys. The one-time and limited term actions were taken during the City’s fiscal year 2020-21 mid-year update and are not expected to continue, except for ARPA-funded transfers as described on the following page. Source: City of Campbell, Annual Comprehensive Financial Reports; City of Campbell.

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General Fund Budget Annual Budget Process. The annual budget serves as the foundation of the City’s financial planning and control. The budget process begins in December with each City department receiving a budget packet. Initial appropriation requests are made in mid-February; study sessions are later held with the City Council between March and May to discuss department goals and work plans as well as to obtain Council’s input on special priorities or concerns that should be considered in developing the budget. Subsequently, the City Manager meets with each department director to discuss the budget requests and make changes where necessary. The City Manager then prepares and presents the recommended budget in late May or early June for Council’s preliminary consideration. The City’s financial policies authorize the City Manager to administratively approve budget adjustments within the adopted budget under $10,000 or requiring transfers from reserves under $5,000 per transaction. Requests for increase in appropriations over these amounts or any adjustments to capital projects require approval by the City Council. Previous Years and Fiscal Year 2021-22 Budget. The table below shows recent revenue and expenditures history as well as estimates and budgeted projections of the City, as of the date of this Official Statement. The following estimates and projections are based on the most current and reliable information in the City’s possession at this time. The City is unable to predict the total impact that COVID-19 may have on the City’s finances or operations. The adopted fiscal year 2021-22 General Fund budget includes $55.0 million of expenditures. Related General Fund revenue sources total $57.1 million, which results in an operating surplus of $2.1 million (before any potential savings realized from recently approved labor concessions as well as any share of anticipated CARES Act funds from the State of California). Fiscal year 2021-22 General Fund expenditures are budgeted to be 0.3% lower when compared to the fiscal year 2020-21 adopted budget and 0.4% lower when compared to fiscal year 2020-21 year-end estimates. In addition, fiscal year 2021-22 General Fund revenues are budgeted to be 6.1% higher when compared to the fiscal year 2020-21 adopted budget and 0.2% higher when compared to fiscal year 2020-21 year-end estimates. In June 2021, the City projected a General Fund operating surplus of approximately $2.1 million in fiscal year 2021-22, but a General Fund operating deficit of $337,000 in fiscal year 2022-23. The City has received or is expecting to receive $9,997,774 total in a one-time American Rescue Plan Act (“ARPA”) funding. The City expects to apply the ARPA funding to the extent necessary to balance its General Fund over the next few fiscal years; the City is projecting that the ARPA funding will be exhausted in fiscal year 2024-25.

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CITY OF CAMPBELL GENERAL FUND REVENUES, EXPENDITURES, and FUND BALANCES (Fund Balance, July 1) 2018-19 2019-20 2020-21 2020-21 2021-22 Actual Actual Estimated Adopted Adopted Fund Balance, July 1 $19,419,618 $19,966,673 $15,211,364 -- $16,990,451 REVENUES: Property Taxes 15,607,316 17,208,898 17,225,206 17,481,100 18,847,020 Sales and Use Taxes 15,684,222 13,493,745 13,154,074 14,172,118 15,521,900 Franchise and other taxes 9,539,163 7,962,878 6,216,201 8,117,414 7,210,365 License and permits 2,062,086 2,481,986 2,034,000 3,265,000 2,738,858 Fines and forfeitures 274,478 216,065 44,001 175,000 160,000 Investment income 998,446 542,846 384,400 384,400 395,900 Intergovernmental revenues (1) 761,116 1,009,428 6,628,362 900,075 5,839,504 Charges for services 5,037,369 3,917,007 2,807,868 4,332,526 3,310,465 Leases and rentals 2,913,689 2,543,937 1,812,100 2,828,400 2,116,800 Miscellaneous revenues 191,982 232,556 165,178 169,778 126,268 Other revenues -- 22,646 70,000 -- 72,100 Operating Fund Reserves-bonds and loans 20 -- -- -- -- Operating Fund Reserves-transfers-in 1,294,226 974,801 6,448,657 2,001,583 791,371 Total Revenues 54,364,113 50,606,793 56,990,047 53,827,394 57,130,551 EXPENDITURES: Salaries 18,977,226 19,012,655 18,747,267 19,715,849 19,773,320 Benefits 11,052,287 13,094,052 11,193,702 11,580,368 11,415,771 Supplies and services 16,939,305 17,143,650 17,359,667 17,318,605 17,241,224 Other charges 579,176 529,364 443,950 643,950 496,600 Rents and leases 1,928,975 1,598,459 1,693,453 1,693,453 1,693,453 Operating transfers out 3,096,268 2,858,545 3,541,990 3,606,923 3,548,091 Total Operating Expenditures 52,573,238 54,236,723 52,980,029 54,559,148 54,168,458 Capital outlay 33,882 43,359 -- -- -- Capital transfers-out 1,209,938 1,080,020 2,230,931 575,084 815,634 Total Expenditures 53,817,057 55,362,103 55,210,960 55,134,232 54,984,092 Ending Fund Balance, June 30 (1) $19,966,673 $15,211,364 $16,990,451 -- $19,136,910 * Totals may not add due to rounding. (1) Ending fund balance reflects only the Economic Fluctuations, Emergency, Unassigned, and PERS reserves. See “Comparative Financial Statements” for General Fund reserves. Source: City of Campbell Adopted Operating and Capital Budget. Ad Valorem Property Taxes Tax Levies and Collections. In the City’s latest seven-year financial forecast dated April 25, 2022, the City reported that property tax is the General Fund’s largest revenue source and has been the one bright spot during the COVID-19 pandemic, fueled by increasing housing prices, increasing demand for larger work-from-home spaces, and very low mortgage interest rates, and that the City is estimating that it will receive $18.58 million of property tax revenues in the General Fund in fiscal year 2021-22 and projecting a 9.3% increase in fiscal year 2022-23. All property taxes and special assessments are levied and collected by the County of and paid upon collection

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to the various taxing entities including the City, Successor Agency of the former Redevelopment Agency, and Lighting and Landscape District. Secured taxes are levied on July 1 and are due in two installments on November 1 and February 1 and become delinquent on December 10 and April 10, respectively. Unsecured taxes are due on July 1 and become delinquent on August 31. The lien date for secured and unsecured property taxes is January 1 of the preceding fiscal year. The County is permitted by State law to levy taxes at 1% of full market value at time of purchase plus other increases approved by the voters, and can increase the assessed value of taxable property in the City in accordance with State law (see “CONSTITUTIONAL AND STATUTORY PROVISIONS AFFECTING CITY REVENUES AND APPROPRIATIONS – Article XIIIA”). See Table 1 of the forepart of this Official Statement for a table summarizing the historical and current assessed valuation of the taxable property in the City. The County operates on a Teeter Plan whereby taxing entities, including the City, receive 100% of their secured ad valorem property tax levy assessed by the County, although there is no guarantee that the County will continue to operate on a Teeter Plan. The City receives payments as a series of advances made by the County throughout the year. Secured property tax levy is recognized as revenue upon receipt, including the final payment, which generally is received within 60 days after the fiscal year end. The term “unsecured” refers to taxes on personal property other than real estate, land and buildings. Property tax revenues are recognized by the City in the fiscal year they are assessed, provided they become available as defined above. In the City’s seven-year financial forecast dated April 25, 2022, which extends to fiscal year 2028-29, the City reported that it had received an update from the County Assessor’s office on fiscal year 2021-22 property tax collections thus far and that the County Assessor’s office projected a 5.2% assessed value growth for the City in in fiscal year 2022-23. In addition to property taxes, the City has several other major tax and fee revenue sources, as described below. Sales and Use Tax. Sales tax is the City’s second largest revenue source. While consumer spending and sales tax were significantly impacted by the COVID-19 pandemic, the City generated approximately $14.5 million in sales and use tax revenue in fiscal year 2020-21, an increase of 7.4% from the previous fiscal year due to ongoing economic recovery from the COVID-19 pandemic. The City’s seven-year forecast dated April 25, 2022, projects $15,587,825 of sales tax revenues in the General Fund in fiscal year 2021-22. The City’s seven-year forecast dated April 25, 2022, projects 3% growth in fiscal year 2022-23 and beyond, noting the potential impacts from supply chain disruptions, inflationary pressures, the war in Ukraine, and lingering pandemic impacts. The sales tax is an excise tax imposed on retailers for the privilege of selling or leasing tangible personal property. The use tax is an excise tax imposed for the storage, use, or other consumption of tangible personal property purchased from any retailer. The total sales tax rate within the City is currently 9.375%. The proceeds of sales and uses taxes imposed within the City are distributed by the State to various agencies, with the City receiving 1.25% (125 basis points) of the 9.25% collected.

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Collection of the sales and use tax is administered by the California Department of Tax and Fee Administration (the “CDTFA”). This process was formerly administered by the State Board of Equalization. The Taxpayer Transparency and Fairness Act of 2017, which took effect July 1, 2017, restructured the State Board of Equalization and separated its functions among three separate entities: the State Board of Equalization, the CDTFA and the Office of Tax Appeals. The State Board of Equalization will continue to perform the duties assigned to it by the state Constitution, while all other duties will be transferred to the newly established CDTFA and the Office of Tax Appeals. CDTFA will handle most of the taxes and fees previously collected by the State Board of Equalization, including sales and use tax. According to the CDTFA, it distributes quarterly tax revenues to local jurisdictions (like the City) using the following method: Using the prior year’s like quarterly tax allocation as a starting point, the CDTFA first eliminates nonrecurring transactions such as fund transfers, audit payments and refunds, and then adjusts for growth, in order to establish the estimated base amount. The CDTFA disburses 90% of the base amount to each local jurisdiction in three monthly installments (advances) prior to the final computation of the quarter’s actual receipts. Ten percent is withheld as a reserve against unexpected occurrences that can affect tax collections (such as earthquakes, fire or other natural disaster) or distributions of revenue such as unusually large refunds or negative fund transfers. The first and second advances each represent 30% of the 90% distribution, while the third advance represents the remaining 40%. One advance payment is made each month, and the quarterly reconciliation payment (clean-up) is distributed in conjunction with the first advance for the subsequent quarter. Statements showing total collections, administrative costs, prior advances and the current advance are provided with each quarterly clean-up payment. The CDTFA receives an administrative fee based on the cost of services provided by the Board to the City in administering the City’s sales tax, which is deducted from revenue generated by the sales and use tax before it is distributed to the City.

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Total taxable sales during calendar year 2021 in the City were reported to be $930,705,257, a 18.04% increase over the total taxable sales of $788,435,906 reported during calendar year 2020. CITY OF CAMPBELL TAXABLE TRANSACTIONS (Figures in Thousands) 2017 2018 2019 2020 2021 Retail and Food Services: Auto Dealers, Auto Supplies $33,191 $32,439 $30,791 $27,556 $36,906 Home Furnishings and Appliances 75,015 60,493 39,060 26,551 27,866 Bldg. Materials, Farm Implements 136,617 144,630 146,436 158,793 187,786 Food Stores 51,071 50,117 52,945 52,150 49,635 Gas/Service Stations 98,364 104,973 107,708 63,066 85,616 Apparel Stores 51,010 50,801 48,282 33,093 49,943 Gen. Merchandise Stores 23,788 23,121 23,321 17,026 21,765 Eating and Drinking Places 190,932 209,168 232,978 139,642 194,617 Other Retail Stores 93,538 94,720 91,473 77,099 92,121 Total Retail and Food Services 753,525 770,462 772,994 594,975 746,256 All Other Outlets 206,973 219,397 224,719 193,461 184,495 TOTAL ALL OUTLETS 960,498 989,859 997,713 788,436 930,705 Source: State Department of Tax and Fee Administration. Factors that have historically affected sales tax revenues include the overall economic growth of the Bay Area, competition from neighboring cities, the growth of specific industries within the City, the City’s business attraction and retention efforts, and catalog and Internet sales. Charges for Service. Charges for service is the City's third-largest revenue source and was significantly impacted by the COVID-19 pandemic as a result of the statewide and regional stay-at-home orders and social distancing protocols. In fiscal year 2020-21 charges for services decreased approximately $0.6 million due to a decrease in recreation program revenues. The City is estimating it will receive approximately $4,208,576 in fiscal year 2021-22, a 26.5% increase in fiscal year 2021-22 when compared with the revenues for fiscal year 2020-21 ($3,327,691). The City is estimating a 15.0% increase in fiscal year 2022-23 compared to the year-end estimate for fiscal year 2021-22. At $4.84 million, this is almost a full return to pre-recessionary levels. Thereafter, through fiscal year 2028-29, the City estimates level 3% annual growth in revenues from charges for services. Transient Occupancy Tax (“TOT”). TOT is collected by City hotels on behalf of the City and must be reported on and remitted within 30 days of the close of the month being reported. The City is estimating it will receive approximately $2.4 million of TOT revenues in fiscal year 2021-22. In fiscal year 2018-19, prior to the COVID-19 pandemic, City TOT revenue equaled $4.8 million. The City is conservative in its forecasts for the hotels within the City, used mostly for business travel, and uncertain whether they will every fully rebound to pre-pandemic levels due to increased utility and cost effectiveness of virtual meetings. The City forecasts a slow return to normal and TOT revenues of $3.0 million in fiscal year 2022-23, followed by $4.5 million in fiscal year 2023-24 and $4.6 million in fiscal year 2024-25. The City estimates that TOT revenues won’t fully return to pre-pandemic levels until fiscal year 2025-26.

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License and Permits and Other Taxes. Licenses and permits and other taxes is expected to be the City's eighth-largest revenue source in fiscal year 2021-22. The City is estimating it will receive approximately $3,319,200 of license and permit revenue in fiscal year 2021-22, a 12% increase in fiscal year 2021-22 when compared with the year-end revenues for fiscal year 2020-21. The City is projecting a 17.3% increase in fiscal year 2022-23. Thereafter, City’s seven-year forecast dated April 25, 2022 estimates level 3% annual growth in revenues from licenses and permits through fiscal year 2028-29. Bond and Loans. Bonds and loans is a new revenue category for fiscal year 2020-21 and reflects the issuance of the 2020 Bonds to support the construction of a new police station and a remodeled City library. The Bonds are the second and final issuance of bonds under the Bond Measure. Long-Term Financial Plan Shown below is a summary of the City’s seven-year financial forecast dated April 25, 2022, which includes an estimate of General Fund revenues and expenditures: CITY OF CAMPBELL SEVEN-YEAR FINANCIAL FORECAST (Fiscal Year 2021-22 through 2027-28) 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 Revenues $59,940,870 $64,465,400 $66,756,627 $67,203,759 $70,347,600 $73,492,500 $76,788,700 Expenditures 59,940,870 62,128,600 64,392,900 66,211,200 68,543,600 70,669,900 72,776,400 Surplus/(Deficit) - 2,336,800 2,363,727 992,559 1,804,000 2,822,600 4,012,300 The City’s seven-year financial forecast includes the revenue assumptions for property taxes, sales and use tax, Charges for Service, TOT, license and permits and other taxes described above in this Appendix A under “CITY FINANCIAL INFORMATION – Ad Valorem Property Taxes”. All other General Fund revenue sources are anticipated to have level 3% annual growth through fiscal year 2026-27. Additionally, the City’s seven-year financial forecast includes the following significant assumptions for expenditures: • Employee Costs – Due to ongoing labor negotiations with most all bargaining groups, the City has included no salary escalators for fiscal year 2021-22 other than scheduled merit based and satisfactory performance evaluations. In addition, the City has factored in an 8% healthcare premium increase to all medical plans January 1, 2022 (based on historical trends) and known rate increases to retirement rates and other employee benefits. Employee costs are expected to increase by 4.2% in fiscal year 2021-22 when compared to fiscal year 2020-21 year-end estimates and 5.3% in fiscal year 2022-23. After fiscal year 2022-23 the City forecasts average annual salary rate growth of 2.8% through fiscal year 2027-28. The City is also anticipating increases in PERS retirement UAAL rates starting in fiscal year 2022-23 due to PERS missing investment target in fiscal year 2019-20 by 230 basis points (2.3%). Additionally, while labor concessions of approximately $595,000 were expected for fiscal year 2020-21, these savings are not anticipated to continue into the future and a temporary deferral of allowable

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vacation and sick leave cash outs equaling approximately $550,000 will need to be paid back to employees starting in FY 2022. • Supplies and Services – The City is proposing a 4.5% increase to supplies and services costs in fiscal year 2022-23 when compared to fiscal year 2021-22 year-end estimates. After fiscal year 2022-23, the City is estimating level 3% annual growth through fiscal year 2028-29, consistent with normal and average inflationary growth levels. However, all supplies and services modifications will require City Council approval and will only be recommended in future budget proposals if the City feels they are appropriate and sustainable. As discussed above, the City will also look at future cost reduction measures should additional revenue sources not be viable options to balance the General Fund. General Fund Reserves Reserve Policies. The City's financial policies mandate the levels at which reserves shall be maintained. The General Fund Emergency Reserve shall be maintained at a level of 10% of General Fund revenues and used only in case of dire need as a result of physical or financial emergencies as determined by the City Council. The General Fund Operating Reserve shall be maintained at a level of $1 million. This reserve may be used to meet necessary, but unbudgeted, expenditures during the fiscal year, including mid-year budget adjustments, and/or to cover minor unanticipated revenue shortfalls. Funds drawn from this reserve during the year shall be replenished with the adoption of the ensuing fiscal year budget. An Economic Fluctuations Reserve shall be maintained, with a target of two months (16.67%) of General Fund operating expenditures, to provide budget stabilization during an economic downturn that could otherwise result in significant reductions in service levels and/or organizational staffing. This reserve shall not be less than $2 million. However, if the reserve balance falls below $4 million, or the City’s five-year financial projections indicate the reserve will fall below this minimum requirement at any time during this period, City staff shall present to Council, by the following year’s budget adoption, a plan to return to the target amount within five years. A Capital Improvement Program Reserve shall be maintained at a level to cover unbudgeted capital improvement costs, to fund future capital and infrastructure improvements, and to fund anticipated one-time expenditures in the operating budget. This reserve shall be targeted at $5 million, including an annual funding target of $1.5 million specifically for infrastructure needs. Any unappropriated General Fund surplus, not needed to fund other reserves at fiscal year-end, shall be applied to this reserve.

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Historical General Fund Major Reserve Balances. The following table sets forth historical General Fund reserves for fiscal years 2016-17through 2020-21. CITY OF CAMPBELL GENERAL FUND MAJOR RESERVES (Fiscal Year Ending June 30) Reserves Fiscal Year 2016-17 Fiscal Year 2017-18 Fiscal Year 2018-19 Fiscal Year 2019-20 Fiscal Year 2020-21 Econ. Fluct. $6,000,000 $6,000,000 $9,192,787 $9,373,782 $9,028,076 Emergencies 4,941,078 5,114,900 5,586,316 2,585,719 2,585,719 Operating 1,000,000 1,000,000 1,026,759 999,921 1,000,000 PERS 2,252,000 2,252,000 2,252,000 2,252,000 2,252,000 Total 14,193,078 14,366,900 18,057,862 15,211,422 14,865,795 % of Expend. 28.0% 26.8% 33.6% 27.5% 25.6% Source: City of Campbell; Fourth Update of Seven-Year Financial Forecast (April 25, 2022). Projected General Fund Major Reserve Balances. The following table provides a summary of projected General Fund discretionary reserves over the seven-year forecast from fiscal year 2021-22 to fiscal year 2027-28. The key assumptions underlying this table include the following: CITY OF CAMPBELL GENERAL FUND DISCRETIONARY RESERVES (Projected) Reserves Fiscal Year 2021-22 Fiscal Year 2022-23 Fiscal Year 2023-24 Fiscal Year 2024-25 Fiscal Year 2025-26 Fiscal Year 2026-27 Fiscal Year 2027-28 Econ. Fluct. $9,028,076 $9,028,076 $9,028,076 $9,742,585 $10,586,505 $12,076,121 $14,584,141 Emergencies 2,585,719 2,585,719 4,922,519 6,571,737 6,720,376 7,034,760 7,349,340 Operating 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 PERS 2,252,000 2,252,000 2,252,000 2,252,000 2,252,000 2,252,000 2,252,000 Total 14,865,795 14,865,795 17,202,595 19,566,322 20,558,881 22,362,881 25,185,481 % of Expend. 25.6% 24.8% 27.7% 30.4% 31.1% 32.6% 35.6% Source: City of Campbell; Fourth Update of Seven-Year Financial Forecast (April 25, 2022). State Budget and Its Impact on the City On January 10, 2022, the Governor outlined his proposed budget for fiscal year 2022-23 to the State legislature (the “2022-23 Proposed State Budget”). The State has a projected surplus of $45.7 billion, which includes $20.6 billion in General Fund for discretionary purposes, $16.1 billion in additional Proposition 98 for K-14 education, and $9 billion in reserve deposits and supplemental pension payments. The 2022-23 Proposed State Budget allocates 86% of the discretionary surplus to one-time investments, and is projected to be structurally balanced in 2025-26, the last year in the multi-year forecast. The 2022-23 Proposed State Budget reflects $34.6 billion in budgetary reserves. The Rainy Day Fund is now at the constitutional maximum (10% of General Fund revenues) requiring $2.4 billion to be dedicated for infrastructure investments in 2022-23. The 2022-23 Proposed State Budget accelerates the paydown of State retirement liabilities as required by Proposition 2, with $3.9 billion in additional payments in 2022-23 and nearly $8.4 billion projected to be paid

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over the next three years. In addition, the 2022-23 Proposed State Budget projects the State Appropriations Limit or "Gann Limit" will likely be exceeded in the 2020-21 and 2021-22 fiscal years, and as such any funds above this limit are constitutionally required to be allocated evenly between schools and a tax refund. An updated calculation of this limit, and proposals to address it, will be included in the May Revision. Highlights of the 2022-23 Proposed State Budget are: • To address COVID-19, a request for early action to allocate an additional $1.4 billion for the remainder of the 2021-22 fiscal year, and reflects $1.3 billion for 2022-23 to continue COVID-19 efforts in the 2022-23 fiscal year. • To permanently expand the State's ability to protect public health and address social determinants of health, includes $300 million General Fund for the Department of Public Health and local health jurisdictions and also includes major ongoing investments to modernize public health data systems that have been critical during the COVID-19 pandemic. • Total funding of $119 billion for K-12 education, with K-12 per-pupil funding of $15,261 Proposition 98 General Fund, its highest level ever, and $20,855 per pupil when accounting for all funding sources. • $1 billion Proposition 98 General Fund to universal transitional Kindergarten to all four-year-olds, increasing access to at least 56,000 children and reducing student-to-adult ratios, with full implementation planned by 2025-26. • $309 million total funds to focus the State preschool program to better serve dual language learners and students with disabilities. • $3.4 billion Proposition 98 General Fund ongoing to support for after-school and summer program, with access to expanded-day, full-year instruction and enrichment for all elementary school students and an additional $937 million Proposition 98 General Fund to support integrating arts and music into enrichment programs. • $500 million in additional tax relief over several years for the small business relief program through state conformity for qualified California recipients of federal relief grants in significantly impacted industries. • $150 million one-time General Fund to support small businesses previously waitlisted in prior rounds of the State’s Small Business COVID-19 Relief Grant Program. • $3 billion General Fund over the next two years to reduce the Unemployment Insurance Trust Fund debt owed to the federal government. • $1.7 billion to expand the State's health and human services workforce, including training strategies to increase the State’s workforce of nurses, social workers,

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emergency medical technicians, behavioral health care providers, and community health care workers. • $35 million General Fund to create regional workforce development and training hubs focused on climate change and $30 million General Fund over two years to train, develop, and certify forestry professional. • $1.2 billion over two years to continue investments in forest health and fire prevention, including a major new reforestation effort. • $750 million General Fund to address immediate drought response needs, including $250 million set aside as a contingency. • $9.1 billion ($4.9 billion General Fund and $4.2 billion Proposition 1A bond funds) to support the continued development of a first-in-the-nation, electrified high-speed rail system, regional transit and rail projects, bicycle and pedestrian projects, and climate adaptation projects, with a particular focus on aligning the State's transportation system with its climate goals. • $6.1 billion (General Fund, Proposition 98 General Fund, federal funds, and Greenhouse Gas Reduction Fund) over five years, which builds on last year's unprecedented zero-emission package, for a total of $10 billion to advance California's climate and transportation goals. • $2 billion General Fund over two years to provide incentives for long-duration-storage projects, renewable hydrogen, and industrial decarbonization, including in the food processing sector. • $1.5 billion over two years to accelerate the development of affordable housing. • $30 million to create the Office of Health Care Affordability, charged with increasing the transparency of pricing, developing specific cost targets for different sectors of the health care industry, and imposing financial consequences for entities failing to meet these targets. • $2 billion General Fund over two years to continue the State’s efforts to address homelessness by investing in behavioral health housing and encampment cleanup grants. • $285 million General Fund over three years for grants to bolster local law enforcement response to organized retail theft crime, as well as to assist local prosecutors in holding perpetrators accountable and $18 million General Fund over three years for the Attorney General to prosecute organized retail theft crimes. • $5 million ongoing General Fund for the Attorney General to continue leading anti-crime task forces throughout the State.

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Information about the fiscal year 2022-23 State budget and other State budgets is available at www.ebudget.ca.gov. An impartial analysis of the budget is posted by the Legislative Analyst Office at www.lao.ca.gov. In addition, various State official statements, many of which contain a summary of the current and past State budgets, may be found at the website of the State Treasurer, www.treasurer.ca.gov. The information referred to in this paragraph is prepared by the respective State agency maintaining each website and not by the City or Underwriter, and the City and Underwriter take no responsibility for the continued accuracy of the Internet addresses or for the accuracy or timeliness of information posted there, and such information is not incorporated in this Official Statement by these references. Dissolution of Redevelopment Agencies. State legislation enacted as part of the 2011 Budget Act, and upheld by the California Supreme Court, resulted in the formal dissolution of redevelopment agencies, including the Campbell Redevelopment Agency (the “Former Redevelopment Agency”), effective as of February 1, 2012. The City created a private-purpose trust fund to account for the assets and liabilities. Retirement Programs PERS Plan Description. All qualified permanent and probationary employees are eligible to participate in the City’s Safety (police) cost-sharing multiple-employer defined benefit plan or the Miscellaneous (all other) Plan, agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System ("PERS"), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. PERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the PERS website. PERS Plan Eligibility. For a more detailed discussion of the eligibility requirements for the City’s PERS retirement plans, see Note 9 of APPENDIX B to this Official Statement. PERS Plan Contributions. The City is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the PERS Board of Administration (the “Board of Administration”). The required employer contribution rates of annual covered payroll for the Miscellaneous Plan and the Safety Police Plan employees for fiscal years 2017-18 through 2020-21 are shown below: Miscellaneous Plan Safety Plan Fiscal Year Employer Contribution Rate Fiscal Year Employer Contribution Rate 2017-18 27.900% 2017-18 56.600% 2018-19 30.500 2018-19 60.800 2019-20 30.414 2019-20 64.729 2020-21 32.908 2020-21 68.667 The contribution requirements of the plan members are established by State statute, and the employer contribution rates are established and may be amended by PERS.

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Implementation of GASB Nos. 68. Commencing with fiscal year ended June 30, 2015, the City implemented the provisions of GASB Statement Nos. 68, which require certain new pension disclosures in the notes to its audited financial statements commencing with the audit for fiscal year 2014-15. Statement No. 68 generally requires the City to recognize its proportionate share of the unfunded pension obligation by recognizing a net pension liability measured as of a date (the measurement date) no earlier than the end of its prior fiscal year. As a result of the implementation of GASB Statement Nos. 68, the City reflected a restatement of its beginning net position as of July 1, 2014. For a more detailed discussion of the eligibility requirements for the City’s retirement plans, see Note 9 of APPENDIX B to this Official Statement for detailed information about the actuarial assumptions underlying the contributions. The City is required to contribute at an actuarially determined rate of annual covered payroll, plus a fixed payment of unfunded liability. The actuarially determined rates and amounts for each plan for the fiscal years ended June 30, 2021, through June 30, 2023, are as follows: City’s Required Employer Contribution Rate Fiscal Year 2020-21 Fiscal Year 2021-22 Fiscal Year 2022-23 Employer Normal Cost Rate Employer Payment of Unfunded Liability
Employer Normal Cost Rate
Employer Payment of Unfunded Liability
Employer Normal Cost Rate
Employer Payment of Unfunded Liability Miscellaneous Plan 11.364% $2,265,429 10.55% $2,626,132 10.29% $2,900,005 Safety Plan - PEPRA 13.044 29,441 13.13 34,837 12.78 37,065 Source: CalPERS Actuarial Reports dated July 2019, July 2020, and July 2021. The City's total contributions to each plan in fiscal years 2018-19, 2019-20 and 2020-21 were as follows: Miscellaneous Plan Fiscal Year Total City Contribution 2018-19 $2,683,458 2019-20 3,062,946 2020-21 3,446,237 Safety Plan Fiscal Year Total City Contribution 2018-19 $3,579,757 2019-20 3,858,649 2020-21 4,968,440 Funded Status. The following table sets forth the schedule of funding for the City’s Miscellaneous and Safety Plan pension plans for the fiscal years ended June 30, 2018, 2019, 2020.

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Miscellaneous Plan Miscellaneous Plan - Classic Valuation Date (June 30) Accrued Liability Market Value of Assets Unfunded Liability Funded Ratio (1) Annual Covered Payroll 2018 $113,121,107 $81,618,443 $31,502,664 72.2% $12,400,300 2019 118,697,143 85,583,005 33,114,138 72.1 13,266,529 2020 123,493,575 88,427,480 35,066,095 71.6 13,482,997 Safety Plan Safety Plan - PEPRA Valuation Date (June 30) Accrued Liability Market Value of Assets Unfunded Liability Funded Ratio (1) Annual Covered Payroll 2018 $640,294 $583,300 $56,994 91.1% $1,411,085 2019 1,035,027 937,642 97,385 90.6 2,414,833 2020 2,588,953 2,407,553 181,400 93.0 2,372,229 (1) Based on the market value of assets. Source: CalPERS Actuarial Report Dated July 2021. Recent Actions by PERS. At its April 17, 2013, meeting, the Board of Administration approved a recommendation to change the PERS amortization and smoothing policies. Prior to this change, PERS employed an amortization and smoothing policy that spread investment returns over a 15-year period with experience gains and losses paid for over a rolling 30-year period. After this change, PERS will employ an amortization and smoothing policy that will pay for all gains and losses over a fixed 30-year period with the increases or decreases in the rate spread directly over a 5-year period. The new amortization and smoothing policy was used for the first time in the June 30, 2013, actuarial valuations in setting employer contribution rates for fiscal year 2015-16. On February 18, 2014, the Board of Administration approved new demographic actuarial assumptions based on a 2013 study of recent experience. The largest impact, applying to all benefit groups, is a new 20-year mortality projection reflecting longer life expectancies and that longevity will continue to increase. Because retirement benefits will be paid out for more years, the cost of those benefits will increase as a result. The Board of Administration also assumed earlier retirements for Police 3%@50, Fire 3%@55, and Miscellaneous 2.7%@55 and 3%@60, which will increase costs for those groups. As a result of these changes, rates will increase beginning in fiscal year 2016-17 (based on the June 30, 2014 valuation) with full impact in fiscal year 2020-21. On November 18, 2015, the Board of Administration adopted a funding risk mitigation policy intended to incrementally lower its discount rate - its assumed rate of investment return - in years of good investment returns, help pay down the pension fund's unfunded liability, and provide greater predictability and less volatility in contribution rates for employers. The policy establishes a mechanism to reduce the discount rate by a minimum of 0.05 percentage points to a maximum of 0.25 percentage points in years when investment returns outperform the existing discount rate, currently 7.5%, by at least four percentage points. PERS staff modeling anticipates the policy will result in a lowering of the discount rate to 6.5% in about 21 years, improve funding levels gradually

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over time and cut risk in the pension system by lowering the volatility of investment returns. More information about the funding risk mitigation policy can be accessed through PERS’ web site at the following website address: https://www.calpers.ca.gov/page/newsroom/calpers-news/2015/adopts-funding-risk-mitigation-policy. The reference to this Internet website is provided for reference and convenience only. The information contained within the website may not be current, has not been reviewed by the City and is not incorporated in this Official Statement by reference. On December 21, 2016, the Board of Administration voted to lower its discount rate from the current 7.5% to 7.0% over three years according to the following schedule. Fiscal Year Discount Rate 2018-19 7.375% 2019-20 7.250 2020-21 7.000 For public agencies like the City, the new discount rate took effect July 1, 2018. Lowering the discount rate means employers that contract with PERS to administer their pension plans will see increases in their normal costs and unfunded actuarial liabilities. Active members hired after January 1, 2013, under the Public Employees' Pension Reform Act will also see their contribution rates rise. The three-year reduction of the discount rate will result in average employer rate increases of about 1% to 3% of normal cost as a percent of payroll for most miscellaneous retirement plans, and a 2% to 5% increase for most safety plans. Additionally, many PERS employers will see a 30% to 40% increase in their current unfunded accrued liability payments. These payments are made to amortize unfunded liabilities over 20 years to bring the pension fund to a fully funded status over the long-term. City employees are entitled to an annual retirement benefit, payable monthly for life, the amount of which is based on a formula which varies depending on the employee’s pension plan, date of hire, and participation in a public retirement plan prior to City employment. On January 1, 2013, the Public Employees’ Pension Reform Act of 2013 (“PEPRA”) took effect. PEPRA distinguishes between “classic employees”, who were in a public retirement plan (not necessarily CalPERS) prior to January 1, 2013, and new “PEPRA employees”, who first became a member of a public retirement plan on or after January 1, 2013. Details about the Miscellaneous and Safety Plan provisions and benefits applicable to both classic and PEPRA employees can be found on page 58 of the City’s Annual Comprehensive Financial Report attached to this Official Statement as APPENDIX B. On November 15, 2021, the CalPERS Board selected a new asset allocation mix that will guide the fund’s investment portfolio for the next four years, while at the same time retaining the reduction of discount rate from 7.0% to 6.8%. Notable changes for employers include a decrease in median total employer contribution rates, from less than 1% in miscellaneous plans to a decrease of more than 2% in some safety plans. Contribution changes will take effect in fiscal year 2023-24 for public agencies. Other Post-Employment Benefits (“OPEB”) Plan Description. The City administers a Retiree Award Program which provides medical insurance benefits on a reimbursement basis to eligible retirees in accordance with various labor agreements. The City pays up to $325 per month for retiree only medical insurance premiums or

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the actual cost of the retiree premium, whichever is less. Eligible retirees must be retired from the City with at least 17 years of service with the City and be at least 50 years of age. The City has established a trust with the California Employers Retiree Benefit Trust, an agent multiple-employer trust, for the purpose of holding assets accumulated for plan benefits. Copies of the PERS’ annual financial reports for its OPEB Trust may be obtained from its executive office at 400 “P” Street, Sacramento, California 95814. Membership of the plan as of the 2020-21 fiscal year consisted of 96 retirees and beneficiaries receiving benefits, 75 inactive employees and beneficiaries entitled to but not yet receiving benefit payments, and 173 active plan members. Contribution requirements of plan members and the City are established by the City and may be amended by City Council. The contribution required to be made under City Council and labor agreement requirements is based on the most recent actuarial study using a 10-year phase-in option. The annual contribution is based on the actuarially determined contribution. For the year ended June 30, 2021, the City’s cash contributions were $115,548 in payments to a trust, $376,308 of cash benefits payments and an estimated implied subsidy of $120,000, resulting in payments of $613,391. Based an actuarial valuation as of June 30, 2019, the City’s net OPEB liability as of the fiscal year ending June 30, 2021, was $3,961,740. For the fiscal year ended June 30, 2021, the City recognized an OPEB expense of $613,391. For more information regarding the City’s OPEB, see Note 11 of the City’s Annual Comprehensive Financial Report, which is attached as APPENDIX B to the Official Statement. Defined Contribution Plan The Omnibus Budget Reconciliation Act of 1990 mandates that public sector employees who are not members of their employer’s existing retirement system as of January 1, 1992 be covered by either Social Security or an alternative plan. Effective July 1, 2004, the City contracted with the Public Agency Retirement System ("PARS"), a defined contribution plan. PARS covers employees that are part-time, seasonal or temporary and all other employees that are not covered by another retirement system. All eligible employees covered by PARS are fully vested. Employer liabilities are limited to the amount of current contributions. Under PARS, employees contribute 6.2% and the City contributes 1.3% of the employees’ salary each pay period. For the fiscal year ended June 30, 2021, total contributions of $29,918 ($24,733 employee and $5,185 employer) were made based on covered compensation of $399,190. Labor Relations As of July 1, 2021, the City employed approximately 168.07 full-time equivalent budgeted employees. There are six (6) labor groups as shown below. In addition, the City employs

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approximately 12 unrepresented employees that include Executive Management and City Council positions. The City has not experienced any work stoppages or strikes by its employees. CITY OF CAMPBELL Labor Relations Labor Organization Employees Contract Expiration Date Campbell Municipal Employees Association 47 June 30, 2022 Confidential employees 3 June 30, 2022 Campbell Police Civilian Employees Association 19 June 30, 2022 Campbell Police Officers Association 42 December 31, 2022 Management employees 16 June 30, 2022 Northern California Carpenters Regional Council 16 June 30, 2022 Source: City of Campbell. Risk Management General Liability. Risk management activity for City exposure to torts (general liability) is accounted for as a liability on the Statement of Net Position. The City is self-insured for the first $100,000 of liability for each occurrence, and the excess (up to $20,000,000) is covered through the City’s participation in the Pooled Liability Assurance Network Joint Powers Authority ("PLAN JPA") general liability risk pool. PLAN JPA also provides $1,000,000 of employee theft coverage in the excess of the City’s $5,000 deductible. PLAN JPA pool consists of twenty-eight member agencies within the San Francisco Bay Area. The stated purpose of the PLAN JPA pool is to provide certain levels of liability insurance coverage, claims management, risk management services, and legal defense to each participating city within the pool. Each city was required to make an initial deposit premium based on an actuarial study of each City’s risk exposure. The premium consists of a risk portion and administrative portion. The premium is revised each year based on claims experience and risk exposure. Workers' Compensation. The City has a risk financing fund to account for work related injuries and accidents to City employees. This fund is accounted for as an internal service fund in which assets are set aside for claim payments. Under the California Workers’ Disability and Compensation laws, the City, as an employer, is permissibly self-insured for the first $1,000,000 of claims arising from each occurrence. The City obtains excess Workers’ Compensation insurance through a policy up to statutory limits. A premium is charged to each fund and program that budgets for part-time or full-time employees. The total charge allocated is based upon the percentage of each fund’s current-year payroll as it relates to total payroll of the City. Liabilities of the fund are reported when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported. Claims liabilities are calculated considering the effects of inflation, recent claim settlement trends including frequency and amount of payouts and other economic and social factors. For the past three fiscal years, no claims were settled in excess of commercial insurance coverage.

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City Debt Structure Outstanding General Obligation Bonds. On August 19, 2020, the City issued its City of Campbell Election of 2018 General Obligation Bonds, Series 2020 (the “2020 Bonds”) in the aggregate principal amount of $20,000,000. The 2020 Bonds are currently outstanding in the aggregate principal amount of $17,200,000. The 2020 Bonds are the only outstanding series of general obligation bonds other than the Bonds. Outstanding General Fund Lease Obligations. The City currently has outstanding long-term General Fund debt and lease obligations described below. The City has never defaulted on the payment of principal of or interest on any of its indebtedness. 2002 Refunding Certificates of Participation - Civic Center Project. Net proceeds of $9,678,751 from the City’s 2002 Refunding Certificates of Participation (Civic Center Project) (the “2002 Certificates”) were used to prepay and refund the City’s 1993 Certificates of Participation. An additional $1,830,975 of proceeds was used to provide partial funding or renovation and expansion of the City’s Police Department and construction of an animal shelter. As of June 30, 2021, the defeased 1993 Certificates of Participation had been retired. The outstanding 2002 Certificates consist of Capital Appreciation Certificates in the amount of $1,245,844 that bear interest at rates ranging from 5.80% to 5.83%. Capital Appreciation Certificate maturities begin October 1, 2029 and continue annually through 2032. The Capital Appreciation Certificates are not subject to optional prepayment prior to their stated maturity dates. Each year the outstanding principal balance is increased for the accretion of interest associated with the Capital Appreciation Certificates. The accumulated accreted interest at June 30, 2021 is $2,401,247. Principal and interest payments are guaranteed under an insurance policy issued by Ambac Assurance Corporation. As of June 30, 2021, the principal balance outstanding was $3,647,091. The 2002 Certificates represent fractional interests in lease payments made by the City from its general fund. 2016 Refunding Lease Revenue Bonds. In August of 2016, the Campbell Joint Public Finance Authority issued 2016 Refunding Lease Revenue Bonds (the “2016 PFA Bonds”), in the aggregate principal amount of $8,085,000. The bonds pay interest at a rate from 2.0% to 4.0% payable semiannually on April 1 and October 1, commencing on April 1, 2016. The 2016 PFA Bonds were issued to prepay a portion of the 1997 Refunding Certificates of Participation (Civic Center Project) of the City, prepay a portion of the 2002 Certificates, and pay the costs of bond issuance. There is no reserve requirement on the 2016 PFA Bonds. As of June 30, 2021, the principal balance outstanding was $5,175,000. The 2016 PFA Bonds are payable from lease payments made by the City from its general fund. Energy Conservation Assistance Act Loan. The City is party to that certain Energy Conservation Assistance Act Loan Agreement (the “Energy Conservation Act Loan Agreement”), dated as of March 25, 2020, by and between the City, as borrower, and the State of California Energy Resources Conservation and Development Commission, as lender (the “Energy Commission”). The Energy Commission has issued a loan to the City pursuant to the Energy Conservation Act Loan Agreement in the original principal amount of $1,638,168 (the

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“Energy Conservation Act Loan”) for the purpose of financing upgrades to the building energy management system, software and hardware at City Hall, as well as sealing existing HVAC duct work at City Hall and replacing street lighting fixtures in the City. The interest rate of the Energy Conservation Act Loan is 1%, and the final maturity date of the Energy Conservation Act Loan is June 22, 2038. Semiannual payments due to the Energy Commission under the Energy Conservation Act Loan are payable from savings in energy costs or other legally available funds as the City chooses. The obligation of the City to make such payments is limited to the savings realized by the City as a result of implementing the projects funded by the Energy Conservation Act Loan. PG&E On-Bill Financing Loan. The City is party to that certain Local Agency And District Customers On-Bill Financing Loan Agreement (the “On-Bill Financing Loan Agreement”), dated as of March 24, 2020, by and between the City, as borrower, and Pacific Gas & Electric Company, as lender (“PG&E”). Pursuant to the On-Bill Financing Loan Agreement, PG&E has issued a loan in the original principal amount of $2,426,261 (the “On-Bill Financing Loan”), for the purpose of reimbursing the City for costs incurred in connection with the provision of energy efficiency/demand response equipment and services qualifying for one or more of PG&E’s applicable rebate or incentive programs. The On-Bill Financing Loan carries an interest rate of 0%, is payable in 119 monthly payments to be included by PG&E on the City’s regular energy service bills or by separate bill, in PG&E’s discretion, and is payable from savings in energy costs or other legally available funds as the City chooses.

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Employment The City is part of the San José-Sunnyvale-Santa Clara Metropolitan Statistical Area (“MSA”), which is comprised of Santa Clara and San Benito Counties. The unemployment rate in the San José-Sunnyvale-Santa Clara MSA was 2.5%% in March 2022, down from a revised 3.0% in February 2022, and below the year- ago estimate of 5.8%. This compares with an unadjusted unemployment rate of 4.2% for California and 3.8% for the nation during the same period. The unemployment rate was 5.3% in San Benito County, and 2.5% in Santa Clara County. The table below list employment by industry group for the years 2017 through 2021. SAN JOSÉ-SUNNYVALE-SANTA CLARA MSA (San Benito and Santa Clara Counties) Annual Average Civilian Labor Force, Employment and Unemployment, Employment by Industry Calendar Years 2017 through 2021 (March 2021 Benchmark) 2017 2018 2019 2020 2021 Civilian Labor Force (1)(2) 1,067,900 1,073,500 1,082,400 1,054,300 1,045,600 Employment 1,032,500 1,044,200 1,054,100 977,500 995,700 Unemployment 35,400 29,300 28,300 76,800 49,900 Unemployment Rate 3.3% 2.7% 2.6% 7.3% 4.8% Wage and Salary Employment: (3) Agriculture 5,800 5,800 5,600 5,300 5,000 Mining and Logging 200 200 200 200 200 Construction 49,300 49,900 53,000 50,100 51,800 Manufacturing 166,700 171,900 171,900 168,300 169,200 Wholesale Trade 33,500 32,200 31,400 29,200 28,300 Retail Trade 85,800 85,700 83,100 73,100 74,500 Transportation, Warehousing, Utilities 15,400 15,800 16,100 15,800 16,500 Information 85,300 92,100 100,600 105,900 106,900 Finance and Insurance 21,600 21,600 22,000 22,900 23,400 Real Estate and Rental and Leasing 14,500 15,200 15,900 15,100 14,800 Professional and Business Services 236,000 236,200 243,100 237,500 244,400 Educational and Health Services 171,800 176,200 178,700 172,700 178,100 Leisure and Hospitality 103,400 105,700 107,500 73,100 79,200 Other Services 28,900 28,900 28,900 22,100 22,300 Federal Government 10,200 9,900 10,000 10,700 10,400 State Government 6,800 7,100 6,900 7,000 6,900 Local Government 78,600 79,700 80,400 76,300 75,900 Total all Industries 1,113,800 1,134,100 1,155,400 1,085,200 1,107,800 (1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike. (2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic workers, and workers on strike. (3) Totals may not add due to rounding. Source: State of California Employment Development Department.

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The following tables show the major employers in the City and the County. CITY OF CAMPBELL Major Employers 2021 Employer Number of Employees % of Total Employment Chargepoint, Inc. 1,029 4.00% 8x8 Inc 742 2.89 Barracuda Networks Inc. 315 1.23 Home Depot 230 0.89 Family Matters In-Home Care 210 0.82 Whole Foods Market 208 0.81 Moss Adams LLP 201 0.78 SAAMA Technologies 185 0.72 Bioreference Laboratories Inc 170 0.70 Groupware Technology 170 0.70 Source: City of Campbell, Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2021. COUNTY OF SANTA CLARA Major Employers (Listed Alphabetically) April 2022 Employer Name Location Industry Adobe Inc San Jose Publishers-Computer Software (mfrs) Advanced Micro Devices Inc Santa Clara Semiconductor Devices (mfrs) Alphabet Inc Mountain View Internet Search Engines Apple Inc Cupertino Computers-Electronic-Manufacturers Applied Materials Inc Santa Clara Semiconductor Manufacturing Equip (mfrs) California's Great America Santa Clara Amusement & Theme Parks Christopher Ranch LLC Gilroy Garlic (mfrs) Cisco Systems Inc San Jose Computer Peripherals (mfrs) Ebay Inc San Jose Internet & Catalog Shopping Flextronics International Milpitas Semiconductor Devices (mfrs) Fujitsu Laboratories of Amer Sunnyvale Laboratories-Research & Development Intel Corp Santa Clara Semiconductor Devices (mfrs) Intuitive Surgical Inc Sunnyvale Physicians & Surgeons Equip & Supls-Mfrs Lockheed Martin Space Systems Sunnyvale Satellite Equipment & Systems-Mfrs Lucile Packard Children's Hosp Palo Alto Hospitals Lumileds San Jose Lighting Fixtures-Supplies & Parts-Mfrs Maxim Integrated Products Inc San Jose Printed & Etched Circuits-Mfrs NASA Mountain View Federal Government-Space Research/Tech Netapp Inc San Jose Computer Storage Devices (mfrs) Nvidia Corp Santa Clara Computer Software Prime Materials San Jose Semiconductors & Related Devices (mfrs) SAP Center San Jose Stadiums Arenas & Athletic Fields Stanford School of Medicine Stanford Schools-Medical Super Micro Computer Inc San Jose Computers-Electronic-Manufacturers Va Palo Alto Health Care Syst Palo Alto Government-Specialty Hosp Ex Psychiatric Source: State of California Employment Development Department, extracted from The America's Labor Market Information System (ALMIS) Employer Database, 2022 2nd Edition.

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Effective Buying Income “Effective Buying Income” is defined as personal income less personal tax and nontax payments, a number often referred to as “disposable” or “after-tax” income. Personal income is the aggregate of wages and salaries, other labor-related income (such as employer contributions to private pension funds), proprietor’s income, rental income (which includes imputed rental income of owner-occupants of non-farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assistance). Deducted from this total are personal taxes (federal, state and local), nontax payments (fines, fees, penalties, etc.) and personal contributions to social insurance. According to U.S. government definitions, the resultant figure is commonly known as “disposable personal income.” The following table summarizes the total effective buying income for the City of Campbell, the County of Santa Clara, the State and the United States for the period 2018 through 2022. CITY OF CAMPBELL AND COUNTY OF SANTA CLARA Effective Buying Income As of January 1, 2018 through 2022 Year Area Total Effective Buying Income (000’s Omitted) Median Household Effective Buying Income 2018 Campbell $2,113,276 $87,366 Santa Clara County 85,859,495 88,243 California 1,113,648,181 59,646 United States 8,640,770,229 50,735 2019 Campbell $2,293,245 $93,077 Santa Clara County 91,332,099 92,773 California 1,183,264,399 62,637 United States 9,017,967,563 52,841 2020 Campbell $2,428,444 $98,152 Santa Clara County 97,710,060 98,882 California 1,243,564,816 65,870 United States 9,487,165,436 55,303 2021 Campbell $2,554,956 $99,752 Santa Clara County 103,006,380 103,458 California 1,290,894,604 67,956 United States 9,809,944,764 56,790 2022 Campbell $2,821,323 $114,335 Santa Clara County 113,347,038 118,652 California 1,452,426,153 77,058 United States 11,208,582,541 64,448 Source: The Nielsen Company (US), Inc for 2018; Claritas, LLC for 2019 through 2022.

Campbell City CouncilMay 17, 2022

Campbell City Council
May 17, 2022