Agenda, regular meeting — Campbell City Council, September 5, 2023 (part 2 of 2)

11/4/2022
Mr. Darin Goon
S:\1-Projects\20-50120 570 E Hamilton, Campbell\Doc's\Campbell Written Statement-10-18-22.doc

Widen the planter to 10 ft. on Salmar Ave. frontage will impact the length of the proposed carwash tunnel & equipment room.

If you have any questions, please don’t hesitate to give me a call. I can be reached at (925) 287-1174 x1.

Sincerely,
Muthana Ibrahim
Architect, President
M I Architects, Inc.

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Attachment: Project Description (PLN-2022-44 ~ 570 E. Hamilton Avenue.) PLANNING COMMISSION
REGULAR MEETING MINUTES
Tuesday, June 27, 2023 I 7:30pm
City Hall Council Chamber
CALL TO ORDER
The Regular Planning Commission m
eeting of June 27, 2023 was called to order at 7:30 pm by Chair Buchbinder, and the following proceedings were had to wit.

ROLL CALL
Members present:

Rob Eastwood, Director
Bill Seligmann, City Attorney
Daniel Fama, Senior Planner
Tracy Tam, Associate Planner
Ken Ramirez, Administrative Analyst
APPROVAL OF MINUTES

1. Approval of Minutes of June 13, 2023 (Roll Call Vote)  Meeting minutes approved by approved by Planning Commission. Commissioner Ostrowki Absent.

COMMUNICATIONS
Memo was received by the Department and distributed to the Planning Commission from the Attorney representing the applicant on Item 4.

Planning Commissioners Present:

Adam Buchbinder, Chair
Alan Zisser, Vice Chair
Davis Fields
Stuart Ching
Matt Kamkar
Michael Krey
Planning Commission Absent
Maggie Ostrowski

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Attachment: PC Meeting Minutes (2023-06-27) (PLN-2022-44 ~ 570 E. Hamilton Avenue.) Campbell Planning Commission Meeting Minutes – June 27, 2023 Page 3

3. PLN‐2022‐44 – 570 E. Hamilton Avenue
Public Heari
ng to consider the request of AU Energy LLC for property located at 570 E.

Hamilton Avenue to allow reconstruction of a Shell gasoline service station with an expanded
convenience store including off‐site alcohol beverage sales, a drive‐through carwash, and 24‐hour operational hours; associated site, lighting, parking, refuse collection, and landscaping improvements; and removal of on‐site trees. The applications under consideration include a Conditional Use Permit with Site and Architectural Review and Tree Remo
val Permit. File No.: PLN‐2022‐44. Staff is recommending that this item be deemed Statutorily Exempt under CEQA. Planning Commission action is final unless appealed in

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Attachment: PC Meeting Minutes (2023-06-27) (PLN-2022-44 ~ 570 E. Hamilton Avenue.) Campbell Planning Commission Meeting Minutes – June 27, 2023 Page 4

writing to the City Clerk within 10 calendar days. Project Planner: Daniel Fama, Senior Planner
Recommended Action: Adopt a Resolution (reference Attachment 1), denying a Conditional Use Permit w/Site and Architectural Review and a Tree Removal Permit.

Senior Planner Fama presented staff report to consider the request of AU Energy LLC for property located at 570 E. Hamilton Avenue to allow reconstruction of a Shell gasoline service station.

Commissioners received clarification on the number of gateway projects in the pipeline for the city; that
the recommendation would be the same even if there were EV charging stations; that feedback provided was not incorporated into project application; and that fundamentally the project is not consistent with the city’s General Plan. Commission was informed that denying the project would be done so with prejudice.

Zisser‐ what does it mean to deny with prejudice.

City attorn
ey stated that any objections or appeal would be easily defensible as they would have no real solid ground in their appeal.

Applicant’s architect stated there were benefits via additional tax dollars for the city and improve traffic for the next 20 years. Stated that they did not get feedback from city staff.

Need better communi
cation from the city.

Applicant spoke and stated that they own and operate gas service station chains throughout the state. Looks to build sites to be resilient over time. No one solution is paying the bills. Project will offer a blended solution. Stated that this is the only site in the network that needs to be updated, if they take the tanks out then the company will move on. Stated that convenience stores are visited by a lot of res
idents and their employees will be there
for the next 20
years. They are only in the business of gas stations.

Commissioner received clarification and responses from applicant about their lease terms; the number of gas stations owned by the family; and the approximate dollar amount of tax received each year; and that the applicant did not really look at the General Plan from the City.

Commissioner discussed their perspectives on the project. Believe th at Campbell has a
bright future and don’t see the gas station as a significant staple of Campbell’s future.

Commissioners noted that:
 application was inconsistent with the City’s General Plan.  gas service station does not serve Campbell residents but rather serves other commuters driving
through Campbell and bringing congestion to an already busy intersection.
 application brings very little benefit to the residents of Campbell

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Attachment: PC Meeting Minutes (2023-06-27) (PLN-2022-44 ~ 570 E. Hamilton Avenue.) Campbell Planning Commission Meeting Minutes – June 27, 2023 Page 5

 property provides generational opportunity to reimagine the urban form of this critical entry into the city, a future in which a gasoline station has no place.  approving application guarantees that there will be a service station on the property site for the next 20 years, denying application provides other options in the future.

Commissioners in support of staff recommendation to deny project with prejudice.

Motion: Upon motion by Commissioner Ching
, seconded by Commissioner Fields the
Planning Commission adopted Resolution No. 4683, denying with prejudice a Conditional Use Permit with Site and Architectural Review to allow reconstruction of a gasoline service station with an expanded convenience store including off‐site alcohol beverage sales, a drive‐through carwash, and 24‐hour operation hours with associated site, lighting, pa
rking, refuse collection, and landscaping
improvements; and tree removal permit to allow removal of on‐site trees, for property located at 570 E. Hamilton Avenue (PLN‐2022‐44), by the following roll call vote.

AYES: Ching, Kamkar, Krey, Buchbinder, Zisser, Fields NOES: None
ABSENT: Ostrowski
ABSTAIN: None
Chair closed paused
public hearing for a 5 minute break for 5 minutes. Public Hearing resumed at 9:31pm

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Attachment: PC Meeting Minutes (2023-06-27) (PLN-2022-44 ~ 570 E. Hamilton Avenue.)

CITY OF CAMPBELL
Community Development Department

Campbell Planning Division • 70 North First Street • Campbell, CA 95008-1423 • TEL (408) 866-2140 • E-MAIL [email protected]

APPEALS

PLANNING APPLICATION FORM

This application form is intended to facilitate filing of an appeal of a decision of the Community Development Director or Planning Commission (decisio ns of the City Council are final and may not be appealed). Please note that appeals must be submitted in writing and filed with the Planning Division within 10 calendar days after the date of the decision. Time limits will extend to the following City Hall working day where the last of the specified number of days falls on a weekend, holiday, or other day when City Hall is officially closed. If you need assistance, please contact the Planning Division at (408) 866-2140 or [email protected], or visit us at City Hall.

To file an appeal please submit this application form and a signed letter providing the following information in accordance with Campbell Municipal Code (CMC) Section 21.62.40.C:

APPEAL INFORMATION

Property Address: ____________________________________________________________________

Brief Description: ____________________________________________________________________ (e.g. Tree Removal Permit)

File Number(s): ____________________________________________ (please provide all that apply; e.g. PLN-2020-7)

APPELLANT INFORMATION
The following information will be used to contact you regarding the status of your appeal (e.g. hearing dates) and is considered public record.

Name: _________________________________

Email: ___________________________

Address: _______________________________

City: _____________________________

State/Zip: _______________________

Phone: (_____)_____-_______

Mobile: (_____)_____-_______

Other: (_____)_____-_______

FILING FEE
Payment of a $200 fee is required to file an appeal. Once your appeal request has been submitted to the Planning Division, you will be provided with an invoice that must be paid before your request will be accepted. Payment must be made before the conclusion of the 10-day appeal period . Please note that the City charges a 3.36% processing fee for all credit card transitions and a 1% processing fe e for all ACH (electronic check) transactions. Cash or check payments may be made at the City Finance Department at no additional cost.

REQUIRED STATEMENT AND EVIDENCE
A statement specifying the basis for the appeal and the specific aspect of the decision being appealed; Identify error(s) in fact, dispute(s) of findings, or inadequacy of condition(s) to mitigate potential project impact(s ); and
Include supporting evidence substantiating the basis for the appeal. 570 E. Hamilton Ave., Campbell, CA
Appeal Resolution No. 4683
PLN-2022-4
Mr. Sunny Goyal [email protected]
41805 Fremont 94538
650 799 2949

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Attachment: Appeal Letter (PLN-2022-44 ~ 570 E. Hamilton Avenue.)
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Attachment: Appeal Letter (PLN-2022-44 ~ 570 E. Hamilton Avenue.)

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Attachment: Streetscape Drawing (PLN-2022-44 ~ 570 E. Hamilton Avenue.)

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Attachment: Color and Material Sheet (PLN-2022-44 ~ 570 E. Hamilton Avenue.) City
Council
Report
TITLE: Approval of the Fiscal Year (FY) 2023-24 City of Campbell Investment Policy Update (Resolution/Roll Call Vote)

RECOMMENDED ACTION
It is recommended that the City Council adopt a Resolution approving the annual update to the City’s Investment Policy.

BACKGROUND
The investment policy establishes procedures and guidelines by which the City’s surplus funds can be managed in a prudent and fiscally sound manner. The policy encompasses those funds over which the City exercises fiscal control and prioritizes the objectives of public funds management as safety, liquidity and return, in that order and consistent with guidance provided by the Government Finance Office rs Association (GFOA). It also stipulates allowable and unallowable investment alternatives as well as establishes parameters for selecting broker/dealers and institutions with which the City may do business.

DISCUSSION
The City’s Finance Sub -Committee met on August 21, 2023, to discuss and review the Fiscal Year (FY) 2023-24 Investment Policy. The Investment Policy is updated annually to conform to California Government Code (CGC) Section 536 00 et. seq. Any statutory revisions made during the previous calendar year that impact the City policy are incorporated as necessary and shown in the Redline version ( Attachment B ) of the policy. In addition to statutory revisions, staff is recommending s everal revisions below.

All page numbers reference the Redline version:
• Header – Modified to September 5, 2023 throughout to reflect tentative Council review and approval date.

Item: 16
Category: NEW BUSINESS
Meeting Date: September 5, 2023
16 Packet Pg. 199
Annual Investment Policy Update FY 2023-24 Page 2 of 6
• Page 1 – Clarified under Section II (Scope) that the investment of debt procee ds is subject to the governing documents of debt issuances , which supersede the City’s Investment Policy. Nevertheless, those governing documents are often as stringent or more stringent than the City’s Investment Policy.

• Page 2 – A majority of the City’s funds are invested with the Local Agency Investment Fund (LAIF); a highly liquid, stable, and secure state investment pool.

However, other similar investment pools exist and staff recommends revising this section to allow for their use in addition to or i n place of LAIF if it makes financial sense and the pools are rated AAA or equivalent.

• Page 2 – To align with CGC, revised the word “Yield” to “Return”.

• Page 3 – Delegation of Authority is recommended to be revised to allow for the use of qualified external investment advisors . Staff believes that it would be beneficial to the City to contract with a qualified external investment advisor to manage certain portions of the City’s investment portfolio. For a portfolio of Campbell’s size, such services may c ost between $30,000 to $50,000 annually.

Traditionally, internal staff has managed the City’s investment portfolio, which has averaged less than $50 million. However, due to the receipt of Measure O bond proceeds in 2020 and 2022 , the City’s portfolio wa s valued at approximately $102 million as of June 30, 2023. Managing a portfolio of this size is challenging given limited staff bandwidth and capacity as well as the complexities of not only earning maximum return on bond proceeds, but also adhering to I RS arbitrage restrictions on tax -exempt debt (i.e., not earning investment returns over debt service costs) and laddering investment maturities so that funds are available right as they are needed for project construction costs. Thus, staff feels that an external investment adviser could provide additional expert support and access to daily investment data and tools, improve monthly, quarterly, and annual investment reporting, and help staff to navigate the complexities of investing Measure O bond proceeds . Additionally, based on research, staff feels that an external investment advisor could generate additional returns over and above their fees while still maintaining the City’s primary investment goals of safety and liquidity. Additional return is not t he primary reason for contracting with an external investment advisor, but it is a potential favorable added benefit. And lastly, b y modifying this section of the Investment Policy, the City is not obligated to utilize an external investment advisor. This modification only allows for their use, subject to further staff due diligence, submittal and evaluation of vendor proposals, and approval of a potential contractual agreement by the City Council at a future meeting. Other sections of the Investment Poli cy have also been modified to align with this recommended change. If these policy changes are approved by City Council , staff may engage in a future procurement process, work with the Finance Sub -Committee to evaluate vendor proposals, and present a final recommended vendor to the City Council for consideration and approval.

16 Packet Pg. 200
Annual Investment Policy Update FY 2023-24 Page 3 of 6
• Pages 3, 4, and 10 – The title of Finance Manager has been revised to Assistant Finance Director throughout the Investment Policy to align with the recently approved reclassification of the position.
• Page 4 – The title of Sr. Accountant has removed throughout the Investment Policy since the position was downgraded to Accountant in Fiscal Year (FY) 2019-20.
• Page 5 – Enhanced the definition of the Prudent Investor standard based on the recommendations of an external investment advisor and to meet best practice. • Page 5 – If the City engages an external investment advisor, the selected firm may more actively manage the City’s portfolio and need to sell purchased securities at a loss befo re their scheduled maturity, especially in a rising interest rate environment. Thus, to allow for flexibility and efficiency, staff recommends removing the requirement of having the City Manager approve all realized losses in writing . Nevertheless, per the recommendation of the Finance Sub - Committee, a provision was also added so that such losses are to be reported by internal City staff and external investment advisors to the City Manager timely after they occur.
• Page 5 and 6 – Based on the recommendati ons of an external investment advisor and to meet best practice, clarified that when conflicts arise between the City’s Investment Policy and CGC that the more stringent policy will prevail.
• Page 7 – Clarified sections relating to Prime Commercial Paper to be consistent with latest updates to CGC.
• Page 7 – Clarified sections relating to Eligible Banker Acceptances to be consistent with latest updates to CGC.
• Page 9 – Clarified requirements for issuers of Collateralized Mortgage Obligations when they ar e not defined in other sections of the Investment Policy.
• Page 9 – Added section to allow for purchasing Shares of Beneficial Interest Issued by a Joint Powers Authority (JPA) organized pursuant to Section 6509.7 of the CGC. This inclusion would allow f or investment in such JPA investment pools as the California Asset Management Program (CAMP); an investment pool similar to LAIF, but set up with a different JPA structure. • Page 10 – Since investment purchases do not become final until the sale is settled several days or weeks after a purchase transaction has been made and 16 Packet Pg. 201
Annual Investment Policy Update FY 2023-24 Page 4 of 6
City funds transferred, modified restriction of not investing in securities maturing more than five years from the date of settlement as opposed to the date of purchase.

• Page 10 – Consistent with changes to the CGC and to allow for adequate time for quarterly investment data to be received and analyzed by City staff, modified the requirement to submit Quarterly Investment Reports to the City Council from 30 days to 45 days.

• Page 11 – Consistent with staff’s recommendation to allow for the use of an external investment advisor, revised section relating to Selection of Broker/Dealers to allow an external investment advisor to choose their own Broker/Dealers since they often have pre -established relationships with Broker/Dealers and can get better volume pricing than the City could on their own. The Finance Sub -Committee was agreeable to this change, but wanted to verify that the Broker/Dealers for external investment advisors go through a similar and as stringent vetting process as that used by the City. Staff assured the Finance Sub-Committee that they do.

• Pages 12 and 13 – Modified Authorized Securities and Transactions for Campbell Bonds, State Obligations and California Local Obligati ons to be consistent with previous sections of the Investment Policy which allowed for 10% investment per issuer as opposed to 5%. Also modified row relating to LAIF to remove a maximum maturity since LAIF funds are highly liquid, same day funds and have no maturity. And lastly, consistent with previously recommended revisions, added shares of joint power authorities to allowable investment types.

• Pages 13 and 14 – Clarified that per State law cities with less than $100 million in assets under management may not invest more than 25% of idle cash in commercial paper. Also clarified this in the Glossary under Commercial Paper.

• Page 14 – Consistent changes in LAIF rules, raised limitation for any one LAIF account from $65 million to $75 million.

The recommended Clean version Investment Policy for FY 202 3-24 is shown as Attachment C. The Finance Sub -Committee agreed with staff’s recommendations on the FY 202 3-24 Investment Policy and recommended it for Council consideration and approval; with their comments a nd suggested further revisions noted previously and incorporated.

The City’s Investment Strategy was also updated to reflect current economic and financial conditions and is shown as Attachment D. Staff’s recommended Investment Strategy for FY 2023 -24 is similar to the prior year, but adds the 16 Packet Pg. 202
Annual Investment Policy Update FY 2023-24 Page 5 of 6
recommendation that use of external investment advisors be allowed and that vendor proposals be obtained for future Council consideration . The strategy is based on Investment Policy guidelines and was also recommen ded by the Finance Sub-Committee for Council consideration and approval.

As of June 30, 2023, the City’s investment portfolio was valued at approximately $102.0 million. This was comprised of approximately $74.9 million (73.53%) in LAIF, $26.0 million (25.49%) in US Government Agency securities, and $1.0 million (0.98%) in corporate notes or money market accounts with a small residual balance in our Measure O Bonds Cost of Issuance (COI) accounts. Almost all these funds are considered “discretionary” investments meaning that the City can invest this amount as it sees fit within the guidelines of the Investment Policy. With a minimum holdback of at least $22.4 million for cash flow, that leaves up to $79.6 million that can be invested in Agency and other securities (limitation of 75% of portfolio per investment policy). $27.0 million is again currently invested outside of LAIF and staff will continue increasing this throughout the fiscal year as needed as fixed income investment rates remain elevated .

And lastly, average returns increased from 0.47% in FY 2021 -22 to 2.25% in FY 2022 -

23. This led to market value interest earned increasing from $273,000 in FY 2021 -22 to $2.2 million in FY 2022 -23 and actual interest earned increasing from $193,000 in FY 2021-22 to $1.6 million in FY 2022-23.

FISCAL IMPACT
There is no immediate fiscal impact of either the FY 2023-24 Investment Policy or the Investment Strategy.

Prepared by:

Will Fuentes, Finance Director
Approved by:

Angelique Gaeta, Assistant City
Manager
Attachment:
a. Resolution - FY 2023-24 Investment Policy
16 Packet Pg. 203
Annual Investment Policy Update FY 2023-24 Page 6 of 6
b. Investment Policy FY 2023-24 (REDLINE)
c. Investment Policy FY 2023-24 (CLEAN)
d. Investment Strategy FY 2023-24
16 Packet Pg. 204
RESOLUTION NO.____________________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CAMPBELL APPROVING THE ANNUAL UPDATE TO THE INVESTMENT

POLICY AND RELATED ADMINISTRATIVE POLICY REVISIONS
WHEREAS, Government Code Section 53646(a)(2) recommends that a statement of Investment Policy be submitted to the City’s legislative body annually for its consideration at a public meeting; and
WHEREAS, there has been submitted to the City Council a statement of the City’s Investment Policy; and
WHEREAS, the Policy and any changes recommended by staff and the Finance Sub-Committee have been reviewed by the City Council and it has been determined that the Fiscal Year (FY) 2023-24 Investment Policy as recommended is acceptable.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Campbell that the FY 2023-24 Investment Policy is hereby approved as submitted.

PASSED AND ADOPTED this ____ day of __________ 2023, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:
________________________
Anne Bybee, Mayor
ATTEST:
_________________________
Andrea Sanders, City Clerk

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Attachment: Resolution - FY 2023-24 Investment Policy (Annual Investment Policy Update FY 2023-24) City of Campbell, California
Investment Policy Date: August 16September
5, 20232
I. PURPOSE
It is the policy of the City of Campbell to invest public funds in a prudent manner which conforms to all statutes governing the investment of public funds while providing security and meeting the daily cash flow needs of the City.

The purpose of this document is to identify the policies guiding prudent investment of the City’s temporarily idle funds and to establish guidelines and objectives for suitable investments including delegati on of authority, prudence, monitoring and reporting, policy review, diversification, eligible securities, safekeeping, collateralization, selection of financial institutions and broker/dealers, glossary of terms, and forms utilized.

II. SCOPE
A. This investment policy shall apply to all financial assets, investment activities, and debt issues (excluding those debt issues subject to governing documents) of the City of Campbell including the following fund types:

1. General Fund

2. Special Revenue Funds

3. Debt Service Funds

4. Capital Projects Funds

5. Internal Service Funds

6. Trust and Agency Funds
B. The policy does not cover funds held by the Public Employees Retirement System nor funds of the Deferred Compensation program.

III. OBJECTIVES
A. It is the objective of this policy to provide a system which will monitor and forecast revenues and expenditures so that the City can invest temporarily idle funds to the fullest extent possible. The temporarily idle funds shall be invested in accordance with provisions of California Government Code Section 53600 et. seq.

B. The City adheres to conservative investment philosophies including investment of all idle cash, preservation of principal at the risk of yield, maintenance of adequate liquidity to meet anticipated cash flow needs and diversification to avoid the risks inherent in over investing in any one asset class.

C. This policy specifically prohibits trading securities for the sole purpose of speculating on the future direction of interest rates. It further prohibits reverse repurchase agreements, use of derivative products, and/or leveraging of the portfolio.

D. The City shall ensure the safety of invested funds by limiting credit and interest rate risks. The three primary obje ctives of the City's Investment Policy in order of priority are:

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Attachment: Investment Policy FY 2023-24 (REDLINE) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: August 16September
5, 20232

1. Safety: Safety of principal is the foremost objective of the City of Campbell.

Safety and the minimizing of risk associated with investing refer to attempts to reduce the potential for loss of principal, interest or a combination of the two. The City ensures safety of its invested idle funds and limits credit and interest rate ris ks by following these guidelines (all of which are detailed within the body of the Investment Policy):

a. Investing only in those instruments that are generally accepted as safe investment vehicles for local government as authorized by this Policy,

b. Carefully reviewing the qualifications and financial strength of financial institutions and broker/dealers prior to conducting business with them,

c. Diversifying the investment portfolio as prescribed within this Policy,

d. Structuring the portfolio such that securities mature to meet the City's cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation,

e. Limiting the final maturity of purchased securities to five years; limiting the weighted average maturity of the portfolio to three years, and

f. Ensuring the physical security or safekeeping of the City's investments.

2. Liquidity: Liquidity is the second most important objective of the City's Policy.

Liquidity refers to the a bility to convert an investment to cash promptly without loss of principal and minimal loss of interest. For example, this is accomplished by maintaining sufficient balances in liquid investment products, such as the Local Agency Investment Fund (LAIF) or other local government investment pools which offer same day availability , or by investing either in the Local Agency Investment Fund (LAIF) with same day availability, or investing in securities with active secondary or resale markets.

3. YieldReturn: Yield Return on the City's portfolio is last in rank among investment objectives. Investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

IV. STRUCTURE AND RESPONSIBILITY

A. DELEGATION OF AUTHORITY:

1. The City Council assumes direction over the City’s investments, and assigns management responsibility for the investment program to the Finance Director, who shall serve as Chief Fiscal Officer, and have legal custody of funds. The Finance Director may provide for delegation of his/her responsibilities to other

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persons under his/her control responsible for investment transactions, including the delegation of certain portions of the investment portfolio to one or more external and qualified investment advisers or such other designee approved by the Finance Sub-Committee. External investment advisors who are engaged b by the City shall be registered under the Investment Advisers Act of 1940 and shall assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy. designation of certain portions of the investment portfolio related to debt financing to be administered by professional portfolio administrators, i.e. California Arbitrage Management Program (C.A.M.P.) or such other designated administrators approved by the Finance Sub-Committee.

B. POLICY REVIEW:

1. This Investment Policy shall be reviewed and approved annually as recommended by California Government Code Section 53600 et. seq.

C. RESPONSIBILITIES:

1. Responsibilities of the City Council: The City Council consists of a Mayor and four Council members and is the policy setting boar d for the City of Campbell. The City Council has considered and adopted a written Investment Policy for the City of Campbell. Pursuant to the City's Financial Policies, the City Council shall on an annual basis, approve necessary changes to the Investment Policy as recommended by the Finance Sub-Committee. On a quarterly basis, the City Council shall receive, review and accept the Quarterly Investment Report submitted by the Finance Department.

2. Responsibilities of the Finance Sub -Committee: The Finance Sub - Committee consists of two Council members, the City Manager, the Finance Director, and the Finance ManagerAssistant Finance Director . On an annual basis, this Sub-Committee shall review necessary revisions to the established Investment Policy of the City of Campbell and make a recommendation to the City Council accordingly. No less than once per fiscal year, the City's investment strategy will be reviewed by the Finance Sub -Committee. A summary of the investment strategy will be shared with the City Council at that time. Should market activity encourage revisions in the City's strategy, the Finance Sub - Committee shall be advised accordingly.

3. Responsibilities of the City Manager: The City Manager is responsible for directing and supervising the Finance Director. He/she has the responsibility of keeping the City Council fully advised as to the financial condition of the City.

a. Wire Transfer Authority: The City Manager has unlimited wire transfer authority for a single transaction. Such a transaction requires joint review, approval and verification in advance by the City Manager and Finance Director. The transaction shall b e highlighted in the Quarterly Investment Report to Council.

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including the custody and investment of City funds, and investment of those funds in accordance with principles of sound treasury ma nagement and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities. a. Wire Transfer Authority: The Finance Director has wire transfer authority not to exceed $5,000,000 for a single transaction. Such a transaction shall be reviewed, approved and verified in advance by the City Manager. The transaction shall be highlighted in the Quarterly Investment Report to Council.

5. Responsibilities of the Finance ManagerAssistant Finance Director: The Finance Manager Assistant Finance Director is appointed by the Finance Director and serves as the Investment Manager for the City pursuant to specific delegation authority provided by this Investment Policy. He/she is subject to the direction and supervision of the Finance Director and is charged with the responsibility and conduct of the day-to-day accounting and cash management functions of the City. This includes the custody and investment of City funds, and investment of those funds in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities.

Implementation and maintenance of the Investment Policy are the responsibility of this individual. On an annual basis, the Finance ManagerAssistant Finance Director shall present to the Finance Sub-Committee, recommended changes to the City's Investment Policy. On a quarterly basis, the Finance ManagerAssistant Finance Director shall present to the City Council, via the City Manager, a Quarterly Investment Report. Refer to "Monitoring and Reporting" for additional information.
a. Wire Transfer Authority: The Finance Manager Assistant Finance Director has wire transfer authority not to exceed $3,000,000 for a single investment transaction. Such a transaction shall be reviewed, approved and verified in advance by the Finance Director, and shall be reported in the Quarterly Investment Report to Council.

6. Responsibilities of the Accountant and Sr. Accountant: The Accountant is appointed by the Finance Director and is subject to the direction and supervision of the Finance ManagerAssistant Finance Director. The Accountant carries out the specific instructions provided by the Finance Manager Assistant Finance Director regarding the purchase and sale of securities in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Accounting for the various investment transactions is the responsibility of the Accountant.
a. Wire Transfer Authority: The Accountant and Senior Accountant have has wire transfer authority not to exceed $2,100,000 for a single investment transaction. The standard operating procedure is that all cash and investment wire transfers made by the Accountant and Senior Accountant are reviewed, approved and verified in advance by the Finance ManagerAssistant Finance Director , and are reported in the Quarterly Investment Report to Council.

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D. Prudence:

1. Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard It is the understanding of the individuals holding positions with inv estment responsibilities that the "prudent investor" rule applies . This means that all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a lik e character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authoriz ed by law.investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital and income to be derived.

2. The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally riskless and that the investment activities of the City are a matter of public record. Accordingly, while the intent of the City is to hold purchased securities to maturity, the City recognizes that occasional measured losses may be advisable in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that (a) adequate diversification has been implemented , (b) the sale of a security is in the best long-term interest of the City and (c) the City Manager approves in writing, and (c) that such losses are reported by internal City staff and external investments advisors to the City Manager timely after they occur.

E. Ethics and Conflicts of Interest:

Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City’s investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officials shall disclose to the City Manager any business interests they have in financial institutions that conduct business with the City, and they shall sub ordinate their personal investment transactions to those of the City. I n addition, the City Manager, the Finance Director and others with delegated investment authority shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.

F. Conflict with State Statutes or Regulations

1. In the instance of aAny conflict between the City of Campbell Investment Policy

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and Government Code Section 53600 et seq, shall be interpreted in favor of the Government Codethe more stringent requirement shall apply.

V. AUTHORIZED SECURITIES AND TRANSACTIONS

All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or pledged to secure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy and past City investment practices, the City may delay adherence to the new requirements when it is deemed in the best interest of the City to do so. Percentage holdings limits listed in this section apply at the time the security is purchased.

The City has further restricted the eligible types of securities and transactions to the following:

1. United States Treasury bills, notes, bonds, or strips with a final maturity not exceeding five years from the date of purchase.

2. Federal Agency debentures and mortgage -backed securities with a final maturity not exceeding five years from the date of purchase issued by the Gover nment National Mortgage Association (GNMA). The aggregate investment in Federal Agency obligations shall not exceed 75% of the City’s total portfolio.

3. Federal Instrumentality (government sponsored enterprise) debentures, discount notes, callable and step-up securities, with a final maturity not exceeding five years from the date of purchase, issued by the following only: Federal Home Loan Banks (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mor tgage Corporation (FHLMC). The aggregate investment in Federal Instrumentality obligations shall not exceed 75% of the City’s total portfolio.

4. Repurchase Agreements with a final termination date not exceeding one year collateralized by U.S. Treasury oblig ations, Federal Agency securities, or Federal Instrumentality securities listed in items 1, 2 and 3 above with the maturity of the collateral not exceeding five years. For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102% of the dollar value of the transaction. Collateral shall be held in the City's custodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily. The aggregate investment in repurchase agreements shall not exceed 10% of the City’s total portfolio.

Repurchase Agreements shall be entered into only with broker/dealers that have executed a City approved Master Repurchase Agreement with the City. Repurchase counterparties shall be recognized as Primary Dealers with the Federal Reserve Bank of New York, or shall have a primary dealer within their holding company structure. Broker/dealers approved as Repurchase Agreement counterparties shall have a short -term credit rating of at least A-1 or the equivalent and a long-term credit rating of at least A or the equivalent.

The Finance Director shall m aintain a copy of the City's approved Master Repurchase

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Agreement along with a list of the broker/dealers that have executed a Master Repurchase Agreement with the City.

5. Prime Commercial Paper with a maturity not exceeding 270 days from the date of purchase with the highest ranking or of the highest letter and number rating as provided for by a Nationally Recognized Statistical Ratings Organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either sub -paragraph a. or sub-paragraph b. below:

a. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of five hundre d million dollars ($500,000,000) and (3) have debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO.
b. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company , (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated “A -1” or higher, or the equivalent, by a NRSRO.

Purchases of eligible commerci al paper may not represent more than 10% of the outstanding commercial paper of any single corporate issuer. No more than 5% of the City’s total portfolio may be invested in the commercial paper and medium-term notes of any one single issuer, and the aggregate investment in commercial paper shall not exceed 25% of the City’s total portfolio.

6. Eligible Bankers Acceptances provided that rated at least A-1 by Standard & Poor’s, P -1 by Moody’s, or F1 by Fitch at the time of purchase by each service that rates the commercial paper, with a maturity not exceeding 180 days from the date of purchase, issued by a state or national bank that has combined capital and surplus of at least $250 million, whose deposits are insured by the FDIC, and whose senior long-term debt is rated at least A by Standard & Poor's, A2 by Moody's or A by Fitch at the time of purchase. nNo more than 5% of the City’s total portfolio may be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acce ptances shall not exceed 30% of the City’s total portfolio.

7. Medium Term Notes issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a final maturity not exceeding five years from the date of purchase, and are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5% of the City’s total portfolio may be invested in medium term notes of any one issuer and the aggregate investment in medium term notes shall not exceed 30% of the City’s total portfolio.

8. Non-negotiable Time Certificates of Deposit and savings deposits with a maturity not exceeding five years, in state or nationally chartered banks or savings and loans with a California branch office that are insured by the FDIC. Time Certificates of Deposit exceeding the FDIC insured amount must be secured pursuant to California Government Code Section 53652. No more than $1 million may be invested in non -negotiable time certificates of deposit of any one issuer and the aggregate amount invested in non - negotiable time certificates of deposit shall not exceed 25% of the City’s total portfolio.

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9. Certificates of Deposit at commercial bank, savings bank, or savings and loan association that uses a private sector entity (Certificate of Deposit Account Registry Service) that assists in the placement of certificates of deposit, provided that the purchase of certificates of deposit do not, in total, exceed 30% of the City’s funds that may be invested for this purpose. The City shall choose a nationally or state chartered commercial bank in California as the “selected” depository institution to invest the funds. The selected depository institution may submit the funds to a CDARS for the benefit of the City’s account.

The full amount of the principal and interest that may be accrued during the maximum term of each certificate shall be insured by the FDIC.

10. State of California’s Local Agency Investment Fund (LAIF) , pursuant to California Government Code Section 16429.1.

11. Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) invest only in the securities and obligations authorized in this policy and (3) have a rating of AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 10% of the City’s total portfolio may be invested in mutual funds of any one issuer, and the aggregate investment in mutual funds shall not exceed 15% of the City’s total portfolio.

12. Money Market Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) i nvest only in the securities and obligations authorized in this policy and (4) have a rating of at least two of the following: AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 10% of the City’s total portfolio may be invested i n money market funds of any one issuer, and the aggregate investment in money market funds shall not exceed 15% of the total portfolio.

13. Municipal and State Obligations with a minimum long -term rating of A/A -1 or higher by Standard and Poor’s and not exceeding 10% of the portfolio:

(a) Bonds Issued by the Local Agency (City of Campbell) including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.)
(b) State Obligations including registered treasury notes or bonds of this State and any of the other 49 states in addition to California, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of the any of the other 49 United States, in addition to California.
(c) California Local Agency obligations including bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the any of the local agency.
(d) No more than 5% of the portfolio may be invested in any single issuer.

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14. Asset-Backed, Mortgage -Backed, Mortgage Pass -Through Securities, and Collateralized Mortgage Obligations from Issuers Not Defined Elsewhere in Sections 1, 2, and 4 of the Authorized Investments Section of This Policy, provided that:

(a) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(b) No more than 20% of the total portfolio may be invested in these securities. (c) No more than 5% of the portfolio may be invested in any single Asset -Backed or Commercial Mortgage security issuer.
(d) The maximum legal final maturity does not exceed five (5) years.

15. Supranationals, provided that:

(a) Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter -American Development Bank.
(b) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(c) No more than 30% of the total portfolio may be invested in these securities. (d) No more than 10% of the portfolio may be invested in any single issuer. (e) The maximum maturity does not exceed five (5) years.

Note: Per state statute, the maximum combination of Mutual Funds and Money Market Mutual Funds is 20% of the portfolio.

It is the intent of the City that the foregoing list of authorized securities and transactions is strictly interpreted. Any deviation from this list must be preapproved by the City Council writing.

16. Shares of Beneficial Interest Issued by a Joint Powers Authority (JPA) organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional in terest in the underlying pool of securities owned by the joint powers authority and be rated AAA or equivalent. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(a) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(b) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (c) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

16.17. Prohibited Investment Vehicles and Practices

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the U.S. Government that could result in a zero - or negative-interest accrual if held to maturity are permitted.
d. Purchasing or selling securities on margin is prohibited. e. The purchase of foreign currency denominated securities is prohibited. f. Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.

VI. PORTFOLIO MATURITIES AND LIQUIDITY

To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of purchasesettlement, unless the City Council has granted authority to make such an investment at least three months prior to the date of investment. The weighted average final maturity of the City’s portfolio shall at no time exceed 3 years.

VII. MONITORING AND REPORTING

A. The Finance Director shall routinely monitor the contents of the portfolio and shall file with the City Council the Finance Manager Assistant Finance Director 's Investment Report at the first regularly scheduled City Council meeting after 30 45 days from the end of the quarter . The reports shall be prepared and submitted in accordance with California Government Code Section 53646 and shall include the following on all invested monies:

➢ Type of Investment and Issuer
➢ Beginning Balances
➢ Purchases During Quarter
➢ Maturities or Sales During the Quarter
➢ Ending Balances
➢ Maturity Date
➢ Weighted Average Final Maturity
➢ Call Provisions (if any)
➢ Interest Rate
➢ Weighted Average Yield
➢ Face Value or Purchase Cost
➢ Market Value including source
➢ Interest Earned During Quarter
➢ Interest Earned to Maturity
➢ Cash Flow Projection for the Following Quarter
➢ Summary of Cash Invested to Total Cash Balances
➢ Comparative Statistics by Fiscal Year
➢ Reconciliation of Cash & Investments to General Ledger Balances ➢ Investments under the Management of Contracted Parties ➢ Statement of Compliance with the Investment Policy
➢ Statement of Ability to Meet Obligations of Next Six Months

B. In addition to the Quarterly Investment Report, monthly transaction reports will be submitted by the Finance Director to City Council within 45 days of the end of the reporting

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period in accordance with California Government Code Section 53607.

VIII. SELECTION OF BROKER/DEALERS

The City shall transact business with securities broker/dealers after careful review of their qualifications and creditworthiness. In selecting broker /dealers, the Finance Director or designated staff member shall select broker/dealers representing primary dealers in government securities that have est ablished offices and order desks within the State of California, or with such firms that have a primary dealer within their holding company structure.

Exceptions to this rule will be made only upon the joint written authorization of the Finance Director and City Manager. Staff shall investigate broker/dealers wishing to do business with the City to determine if they are adequately capitalized, are reputable, have pending legal action against the firm or the individual broker, have established offices and order desks within the State of California, and make markets in the securities appropriate to the City’s needs.

Before accepting funds or engaging in investment transactions with the City, the supervising officer at each authorized broker/dealer shall sub mit and annually update a City approved Broker/Dealer Information Request form that includes the firm’s most recent audited financial statement. The Finance Director, or his or her designee, shall maintain a list of approved broker/dealers. Broker/dealers shall attest in writing that they have received and reviewed a copy of this Investment Policy, and that they will comply with it and disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm and t he City of Campbell. If the City has engaged the services of an outside professional investment advisor, the investment advisor may use its own list of authorized broker -dealers to conduct transactions on behalf of the City.

IX. DELIVERY, SAFEKEEPING AND COLLATERALIZATION

A. Delivery:

1. All investment transactions shall be conducted on a delivery -versus-payment (DVP) basis.

B. Safekeeping:

1. The City shall contract with a bank or banks for the safekeeping of securities which are owned by the City as a part of the investment portfolio. Staff shall periodically review the performance and pricing of the third -party, safekeeping agent services.

2. All investment securities (except the collateral for certificates of deposit in banks, and/or savings and loans) purchased by the City shall be held in third -party safekeeping by an institution designated as primary agent. The primary agent shall issue a safekeeping receipt to the City listing the specific instrument, rate, maturity and other pertinent information, and shall provide monthly reports of activity and ending balances for all securities held on behalf of the City.

C. Collateralization:

1. Deposit-type securities (i.e. certificates of deposit) shall be collateralized through the State of California collateral pool requirements for any amount exceeding FDIC coverage in accordance with California Government Code Section 53652 and/or 53651(m) (1). Collateral for certificates of deposit shall be held in a trust company located in California, the trust department of a bank located in

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California or the Federal Home Loan Bank of San Francisco.

2. Other securities shall be collateralized by the actual security held in third-party safekeeping by the primary agent.

X. DIVERSIFICATION AND ELIGIBLE SECURITIES

The City will diversify investment instruments to avoid incurring unreasonable risks in overinvesting in specific instruments, individual financial institutions or maturities. The following portfolio maximums shall apply:

If the credit ratings of any security owned by the City are downgraded to a level below the quality required by this investment policy, it will be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio.

If a security is downgraded, the Finance Director will use discretion in determining whether to sell or hold the security based on its current maturity, the economic outlook for the issuer, and other relevant factors.

If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported quarterly to the City Council.

Authorized Securities and Transactions Maximum Portfolio

CA. Gov’t.

Code
Section

Authorized Investment

Maximum
Maturity

Authorized
Investment Limits -
% of Portfolio

Credit Rating Limit

53601 (a) City of Campbell Local Agency
Bonds 5 years None/510% Per
Issuer A/A-1 or Higher
53601 (c) State Obligations 5 years None/510% Per
Issuer A/A-1 or Higher
53601 (e) California Local Agencies 5 years None/510% Per Issuer A/A-1 or Higher
53601(b) United States Treasuries 5 years None None
53601(e) Federal Agency Securities 5 years 75% None
53601(e) Federal Instrumentality 5 years 75% None
53691(i) Repurchase Agreements 1 year 10% A-1/A
53601(g) Prime Commercial Paper 270 days
25%
5% Per Issuer
A/A-1 or higher
53601(f) Eligible Bankers Acceptances 180 days 5% per issuer/30% Aggregate A-1/P-1/F-1

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CA. Gov’t.

Code
Section

Authorized Investment

Maximum
Maturity

Authorized
Investment Limits -
% of Portfolio

Credit Rating Limit

53601(j) Medium Term Notes 5 years 30%/ 5% per
issuer A/A-1 or Higher
53601(n) Non-negotiable Certificates of
Deposit 5 years
25%
$1 million per
issuer
-
53601.8
(a)-(h)
Certificates of Deposit through
Account Registry Services 5 years

7.530% Aggregate
Maximum Up to
the FDIC Insured
Limit Per Issuer
-
16429.1 State of California LAIF 18 Months-
AvgN/A None -
53601(k) *Mutual Funds None 15% AAAm/Aaa/AAAV1+
53601(k) *Money Market Mutual Funds None 15% AAAm/Aaa/AAAV1+ 53601(o)
Asset-Backed, Mortgage-Backed,
Mortgage Pass-Through
Securities, and Collateralized
Mortgage Obligations
5 years 20%/5% per issuer AA or higher
53601(q) Supranationals 5 years 30% AA or higher
53601(p) Shares of a joint powers authority N/A None AAA or higher *Combined total not to exceed
20% per State 20%

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EXHIBIT A

GLOSSARY

Asset Backed Securities. - Securities that are supported by pools of assets, such as installment loans or leases, or by pools of revolving lines of credits. Asset-backed securities are structured as trusts in order to perfect a security interest in the underlying assets.

Banker's Acceptance. This is a negotiable time draft (bill of exchange) with a maturity of six months or less drawn on and accepted by a commercial bank. Banker's Acceptances are usually created to finance the import and export of goods, the shipment of goods within the Uni ted States and storage of readily marketable commodities. Per State Law, cities may not invest more than 30% of idle cash in Banker's Acceptances.

Certificate of Deposit (CD's). - is a receipt for funds deposited in a bank or savings and loan association for a specified period of time at a specified rate of interest. The first $ 250,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC). CD's with a face value in excess of $ 250,000 can be collateralized by Treas ury Department Securities, which must be at least 110% of the face value of the CD's, in excess of the first $250,000, or by first mortgage loans which must be at least 150% of the face value of the CD balance in excess of the first $250,000.

Commercial Paper. - Notes are unsecured promissory notes of industrial corporations, utilities and bank holding companies. State law limits a city to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating. Per State law, cities with less than $100 million in assets under management may not invest more than 25% of idle cash in commercial paper.

Delivery Versus Payment (DVP). - Delivery versus payment (DVP) is a securities industry settlement method that guarantees the transfer of securities only happens after payment has been made. DVP stipulates that the buyer's cash payment for securities must be made prior to or at the same time as the delivery of the security.

Local Agency Investment Fund (L.A.I.F.). - The L.A.I.F. was established by the state of California to enable treasurers to place funds in a pool for investments. There currently is a limitation of $765 million per agency subject to a maximum of 15 total transactions p er month. The City of Campbell uses this fund when interest rates are declining as well as for short-term investments and liquidity.

Medium Term Notes. - are corporate or depository institution debt securities meeting certain minimum quality standards (as specified in the California Government Code) with a remaining maturity of five years or less.

Money Market Mutual Fund. - Mutual funds that invest solely in money market instruments (short- term debt instruments, such as Treasury bills, commercial paper, bankers' acceptances, repos and federal funds).

Mortgage Backed Securities. - Mortgage-backed securities (MBS) are created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a prorata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal

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Attachment: Investment Policy FY 2023-24 (REDLINE) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: August 16September
5, 20232

agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

Mortgage Pass-Through Obligations. - Securities that are created when residential mortgages (or other mortgages) are pooled together and undivided interests or participations in the stream of revenues associated with the mortgages are sold.

Mutual Fund. - An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments. Mutual funds are regulated by the Investment Company Act of 1940 and m ust abide by strict Securities and Exchange Commission (SEC) disclosure guidelines.

Nationally Recognized Statistical Ratings Organization. - A nationally recognized statistical ratings organization (NRSRO) is a credit rating agency that provides an asse ssment of the creditworthiness of a firm or financial instrument(s) that is registered and approved by the Securities and Exchange Commission (SEC). Not all credit rating organizations are NRSROs

Repurchase Agreements (REPOS). - is a contractual arrangement between a financial institution, or dealer, and an investor. This agreement normally can run for one or more days. The investor puts up his funds for a certain number of days at a stated yield. In return, he takes a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid plus interest.

Supranationals. - International institutions formed by two or more governments that transcend boundaries to pursue mutually beneficial economic or social goals. There are three supranational institutions that issue obligations that are eligible investments for California local agencies: the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and InterAmerican Development Bank (IADB).

U.S. Treasury Bills. Commonly referred to as T-Bills, these are short-term marketable securities sold as obligations of the U.S. Government. T -Bills do not accrue interest but are sold at a discount to pay face value at maturity.

U.S. Treasury Notes . These are marketable, interest -bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years. Interest is paid semi-annually.

U.S. Treasury Bonds . These are the same as U.S. Treasury Notes except they have original maturities of ten years or longer.

U.S. Government Agency Issues. Are securities that are unconditionally backed by the full faith and credit of the United States, including: Government National Mortgage Association (GNMA), Farmers Home Administration (FmHA),Small Business Administration (SBA), General Services Administration (GSA), Federal Housing Administration (FHA) and Housing and Urban Development (HUD).

U.S. Government Instrumentality Issues. Are government sponsored enterprises that are backed by the creditworthiness of the issuing agency, not the full faith and credit of the U.S. government.

They do carry an implied guarantee of government assistance to the organization should it encounter financial difficulties. Issuers include: Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC).

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Attachment: Investment Policy FY 2023-24 (REDLINE) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: September 5, 2023

I. PURPOSE

It is the policy of the City of Campbell to invest public funds in a prudent manner which conforms to all statutes governing the investment of public funds while providing security and meeting the daily cash flow needs of the City.

II. SCOPE

A. This investment policy shall apply to all financial assets, investment activities, and debt issues (excluding those debt issues subject to governing documents) of the City of Campbell including the following fund types:

1. General Fund

2. Special Revenue Funds

3. Debt Service Funds

4. Capital Projects Funds

5. Internal Service Funds

6. Trust and Agency Funds

B. The policy does not cover funds held by the Public Employees Retirement System nor funds of the Deferred Compensation program.

III. OBJECTIVES

A. It is the objective of this policy to provide a system which will monitor and forecast revenues and expenditures so that the City can invest temporarily idle funds to the fullest extent possible. The temporarily idle funds shall be invested in accordance with provisions of California Government Code Section 53600 et. seq.

D. The City shall ensure the safety of invested funds by limiting credit and interest rate risks. The three primary obje ctives of the City's Investment Policy in order of priority are:

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Attachment: Investment Policy FY 2023-24 (CLEAN) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: September 5, 2023

1. Safety: Safety of principal is the foremost objective of the City of Campbell.

a. Investing only in those instruments that are generally accepted as safe investment vehicles for local government as authorized by this Policy,

b. Carefully reviewing the qualifications and financial strength of financial institutions and broker/dealers prior to conducting business with them,

c. Diversifying the investment portfolio as prescribed within this Policy,

e. Limiting the final maturity of purchased securities to five years; limiting the weighted average maturity of the portfolio to three years, and

f. Ensuring the physical security or safekeeping of the City's investments.

2. Liquidity: Liquidity is the second most important objective of the City's Policy.

Liquidity refers to the a bility to convert an investment to cash promptly without loss of principal and minimal loss of interest. For example, this is accomplished by maintaining sufficient balances in liquid investment products, such as the Local Agency Investment Fund (LAIF) or other local government investment pools which offer same day availability , or by investing in securities with active secondary or resale markets.

3. Return: Return on the City's portfolio is last in rank among investment objectives. Investments are limited to relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed.

IV. STRUCTURE AND RESPONSIBILITY

A. DELEGATION OF AUTHORITY:

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Attachment: Investment Policy FY 2023-24 (CLEAN) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: September 5, 2023

the delegation of certain portions of the investment portfolio to one or more external and qualified investment advisers or such other designee approved by the Finance Sub-Committee. External investment advisors who are engaged b by the City shall be registered under the Investment Advisers Act of 1940 and shall assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

B. POLICY REVIEW:

1. This Investment Policy shall be reviewed and approved annually as recommended by California Government Code Section 53600 et. seq.

C. RESPONSIBILITIES:

1. Responsibilities of the City Council: The City Council consists of a Mayor and four Council members and is the policy set ting board for the City of Campbell. The City Council has considered and adopted a written Investment Policy for the City of Campbell. Pursuant to the City's Financial Policies, the City Council shall on an annual basis, approve necessary changes to the Investment Policy as recommended by the Finance Sub-Committee. On a quarterly basis, the City Council shall receive, review and accept the Quarterly Investment Report submitted by the Finance Department.

2. Responsibilities of the Finance Sub -Committee: The Finance Sub - Committee consists of two Council members, the City Manager, the Finance Director, and the Assistant Finance Director . On an annual basis, this Sub - Committee shall review necessary revisions to the established Investment Policy of the City of Campbell and make a recommendation to the City Council accordingly. No less than once per fiscal year, the City's investment str ategy will be reviewed by the Finance Sub-Committee. A summary of the investment strategy will be shared with the City Council at that time. Should market activity encourage revisions in the City's strategy, the Finance Sub-Committee shall be advised accordingly.

4. Responsibilities of the Finance Director: The Finance Director is appointed by the City Manager and serves as Chief Fiscal Officer. He/she is subject to the direction and supervision of the City Manager. The Finance Director is charged with the responsibility for the conduct of all Finance Department functions including the custody and investment of City funds, and investment of those funds in accordance with principles of sound treasury ma nagement and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities.

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Attachment: Investment Policy FY 2023-24 (CLEAN) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: September 5, 2023

a. Wire Transfer Authority: The Finance Director has wire transfer authority not to exceed $5,000,000 for a single transaction. Such a transaction shall be reviewed, approved and verified in advance by the City Manager. The transaction shall be highlighted in the Quarterly Investment Report to Council.

5. Responsibilities of the Assistant Finance Director: The Assistant Finance Director is appointed by the Finance Director and serves as the Investment Manager for the City pursuant to specific delegation authority provided by this Investment Policy. He/she is subject to th e direction and supervision of the Finance Director and is charged with the responsibility and conduct of the day - to-day accounting and cash management functions of the City. This includes the custody and investment of City funds, and investment of those funds in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Refer to "Delegation of Authority" for additional information pertaining to delegation of investment responsibilities.

Implementation and maintenance of the Investment Policy are the responsibility of this individual. On an annual basis, the Assistant Finance Director shall present to the Finance Sub -Committee, recommended changes to the City's Investment Policy. On a quarterly basis, the Assistant Finance Director shall present to the City Council, via the City Manager, a Quarterly Investment Report.

Refer to "Monitoring and Reporting" for additional information.

a. Wire Transfer Authority: The Assistant Finance Director has wire transfer authority not to exceed $3,000,000 for a single investment transaction.

Such a transaction shall be reviewed, approved and verified in advance by the Finance Director, and shall be reported in the Quarterly Investment Report to Council.

6. Responsibilities of the Accountant: The Accountant is appointed by the Finance Director and is subject to the direction and supervision of the Assistant Finance Director. The Accountant carries out the specific instructions provided by the Assistant Finance Director regarding the purchase and sale of securities in accordance with principles of sound treasury management and in accordance with applicable laws and policies. Accounting for the various investment transactions is the responsibility of the Accountant.

a. Wire Transfer Authority: The Accountant has wire transfer authority not to exceed $2,100,000 for a single investment transaction. The standard operating procedure is that all cash and investment wire transfers made by the Accountant are reviewed, approved and verified in advance by the Assistant Finance Director , and are reported in the Quarterly Investment Report to Council.

D. Prudence:

1. Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard. This means that all governing bodies of local agencies or persons authorized to make investment decisions on beh alf of those local agencies investing public funds pursuant to

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Attachment: Investment Policy FY 2023-24 (CLEAN) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: September 5, 2023

this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investm ents as part of an overall strategy, investments may be acquired as authorized by law.

2. The City’s overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that no investment is totally riskless and that the investment activities of the City are a matter of public record. Accordingly, while the intent of the City is to hold purchased securities to maturity, the City recognizes that occasional measured losses may be advisable in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that (a) adequate diversification has been implemented (b) the sale of a security is in the best long- term interest of the City , and (c) that such losses are reported by internal City staff and external investments advisors to the City Manager timely after they occur.

E. Ethics and Conflicts of Interest:

Elected officials and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the City’s investment program or could impair or create the appearance of an impairment of their ability to make impartial investment decisions. Employees and investment officia ls shall disclose to the City Manager any business interests they have in financial institutions that conduct business with the City, and they shall sub ordinate their personal investment transactions to those of the City. In addition, the City Manager, the Finance Director and others with delegated investment authority shall file a Statement of Economic Interests each year pursuant to California Government Code Section 87203 and regulations of the Fair Political Practices Commission.

F. Conflict with State Statutes or Regulations

1. In the instance of a ny conflict between the City of Campbell Investment Policy and Government Code Section 53600 et seq, the more stringent requirement shall apply.

V. AUTHORIZED SECURITIES AND TRANSACTIONS

All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set asi de or pledged to secure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of these code sections will be assumed to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy and past City investment practices, the City may delay adherence to the new requirements w hen it is deemed in the best interest of

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Attachment: Investment Policy FY 2023-24 (CLEAN) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: September 5, 2023

the City to do so. Percentage holdings limits listed in this section apply at the time the security is purchased.

The City has further restricted the eligible types of securities and transactions to the following:

1. United States Treasury bills, notes, bonds, or strips with a final maturity not exceeding five years from the date of purchase.

2. Federal Agency debentures and mortgage -backed securities with a final maturity not exceeding five years from the date of purchase issued by the Government National Mortgage Association (GNMA). The aggregate investment in Federal Agency obligations shall not exceed 75% of the City’s total portfolio.

3. Federal Instrumentality (government sponsored enterprise) debentures, disco unt notes, callable and step-up securities, with a final maturity not exceeding five years from the date of purchase, issued by the following only: Federal Home Loan Banks (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Banks (FFC B) and Federal Home Loan Mortgage Corporation (FHLMC). The aggregate investment in Federal Instrumentality obligations shall not exceed 75% of the City’s total portfolio.

4. Repurchase Agreements with a final termination date not exceeding one year collateralized by U.S. Treasury obligations, Federal Agency securities, or Federal Instrumentality securities listed in items 1, 2 and 3 above with the maturity of the collateral not exceeding five years. For the purpose of this section, the term collateral shall mean purchased securities under the terms of the City’s approved Master Repurchase Agreement. The purchased securities shall have a minimum market value including accrued interest of 102% of the dollar value of the transaction. Collateral shall be held in the City's custodian bank, as safekeeping agent, and the market value of the collateral securities shall be marked-to-the-market daily. The aggregate investment in repurchase agreements shall not exceed 10% of the City’s total portfolio.

The Finance Director shall maintain a copy of the City's approved Master Repurchase Agreement along with a list of the broker/dealers that have executed a Master Repurchase Agreement with the City.

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Attachment: Investment Policy FY 2023-24 (CLEAN) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: September 5, 2023

b. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company , (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated “A -1” or higher, or the equivalent, by a NRSRO.

No more than 5% of the City’s total portfolio may be invested in the commercial paper and medium-term notes of any single issuer, and the aggregate investment in commercial paper shall not exceed 25% of the City’s total portfolio.

6. Eligible Bankers Acceptances provided that no more than 5% of the City’s total portfolio may be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 30% of the City’s total portfolio.

7. Medium Term Notes issued by corporations organ ized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States, with a final maturity not exceeding five years from the date of purchase, and are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5% of the City’s total portfolio may be invested in medium term notes of any one issuer and the aggregate investment in medium term notes shall not exceed 30% of the City’s total portfolio.

The full amount of the principal and interest that may be accrued during the maximum term of each certificate shall be insured by the FDIC.

10. State of California’s Local Agency Investment Fund (LAIF) , pursuant to California Government Code Section 16429.1.

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Investment Policy Date: September 5, 2023

13. Municipal and State Obligations with a minimum long -term rating of A/A -1 or higher by Standard and Poor’s and not exceeding 10% of the portfolio:

14. Asset-Backed, Mortgage-Backed, Mortgage Pass -Through Securities, and Collateralized Mortgage Obligations from Issuers Not Defined Elsewhere in the Authorized Investments Section of This Policy, provided that:

(a) The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
(b) No more than 20% of the total portfolio may be invested in these securities. (c) No more than 5% of the portfolio may be invested in any single Asset -Backed security issuer.
(d) The maximum legal final maturity does not exceed five (5) years.

15. Supranationals, provided that:

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Attachment: Investment Policy FY 2023-24 (CLEAN) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: September 5, 2023

(e) The maximum maturity does not exceed five (5) years.

Note: Per state statute, the maximum combination of Mutual Funds and Money Market Mutual Funds is 20% of the portfolio.

It is the intent of the City that the forego ing list of authorized securities and transactions is strictly interpreted. Any deviation from this list must be preapproved by the City Council writing.

16. Shares of Beneficial Interest Issued by a Joint Powers Authority (JPA) organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (q), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority and be rated AAA or equivalent. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria:
(a) The adviser is registered or exempt from registration with the Securiti es and Exchange Commission.
(b) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive. (c) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).

17. Prohibited Investment Vehicles and Practices

a. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. b. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. c. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero - or negative-interest accrual if held to maturity are permitted.
d. Purchasing or selling securities on margin is prohibited. e. The purchase of foreign currency denominated securities is prohibited. f. Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.

VI. PORTFOLIO MATURITIES AND LIQUIDITY

To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of settlement, unless the City Council has granted authority to make such an investment at least three months prior to the date of investment. The weighted average final maturity of the City’s portfolio shall at no time exceed 3 years.

VII. MONITORING AND REPORTING

A. The Finance Director shall routinely monitor the contents of the portfolio and shall file with the City Council the Assistant Finance Director 's Investment Report at the first regularly scheduled City Council meeting after 45 days from the end of the quarter .

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Attachment: Investment Policy FY 2023-24 (CLEAN) (Annual Investment Policy Update FY 2023-24) City of Campbell, California

Investment Policy Date: September 5, 2023

The reports shall be prepared and submitted in accordance with California Government Code Section 53646 and shall include the following on all invested monies:

B. In addition to the Quar terly Investment Report, monthly transaction reports will be submitted by the Finance Director to City Council within 45 days of the end of the reporting period in accordance with California Government Code Section 53607.

VIII. SELECTION OF BROKER/DEALERS

The City shall transact business with securities broker/dealers after careful review of their qualifications and creditworthiness. In selecting broker /dealers, the Finance Director or designated staff member shall select broker/dealers re presenting primary dealers in government securities that have established offices and order desks within the State of California, or with such firms that have a primary dealer within their holding company structure.

Exceptions to this rule will be made on ly upon the joint written authorization of the Finance Director and City Manager. Staff shall investigate broker/dealers wishing to do business with the City to determine if they are adequately capitalized, are reputable, have pending legal action against the firm or the individual broker, have established offices and order desks within the State of California, and make markets in the securities appropriate to the City’s needs.

Before accepting funds or engaging in investment transactions with the City, t he supervising officer at each authorized broker/dealer shall submit and annually update a City approved Broker/Dealer Information Request form that includes the firm’s most recent audited financial statement. The Finance Director, or his or her designee, shall maintain a list of approved broker/dealers. Broker/dealers shall attest in writing that they have received and reviewed a copy of this Investment Policy, and that they will comply with it and disclose potential conflicts or risks to public funds tha t might arise out of business transactions between the firm and the City of Campbell. If the City has engaged the services of an outside professional investment

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Investment Policy Date: September 5, 2023

advisor, the investment advisor may use its own list of authorized broker -dealers to conduct transactions on behalf of the City.

IX. DELIVERY, SAFEKEEPING AND COLLATERALIZATION

A. Delivery:

1. All investment transactions shall be conducted on a delivery -versus-payment (DVP) basis.

B. Safekeeping:

C. Collateralization:

1. Deposit-type securities ( i.e., certificates of deposit) shall be collateralized through the State of California collateral pool requirements for any amount exceeding FDIC coverage in accordance with California Government Code Section 53652 and/or 53651(m) (1). Collateral for certificates of deposit shall be held in a trust company located in California, the trust department of a bank located in California or the Federal Home Loan Bank of San Francisco.

2. Other securities shall be collateralized by the actual security held in third-party safekeeping by the primary agent.

X. DIVERSIFICATION AND ELIGIBLE SECURITIES

If a decision is made to retain a downgraded security in the portfolio, its presence in the portfolio will be monitored and reported quarterly to the City Council.

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Investment Policy Date: September 5, 2023

Authorized Securities and Transactions Maximum Portfolio

CA. Gov’t.

Code
Section

Authorized Investment

Maximum
Maturity

Authorized
Investment Limits -
% of Portfolio

Credit Rating Limit

53601 (a) City of Campbell Local Agency
Bonds 5 years None/10% Per
Issuer A/A-1 or Higher
53601 (c) State Obligations 5 years None/10% Per
Issuer A/A-1 or Higher
53601 (e) California Local Agencies 5 years None/10% Per Issuer A/A-1 or Higher
53601(b) United States Treasuries 5 years None None
53601(e) Federal Agency Securities 5 years 75% None
53601(e) Federal Instrumentality 5 years 75% None
53691(i) Repurchase Agreements 1 year 10% A-1/A
53601(g) Prime Commercial Paper 270 days
25%
5% Per Issuer
A/A-1 or higher
53601(f) Eligible Bankers Acceptances 180 days 5% per issuer/30% Aggregate A-1/P-1/F-1
53601(j) Medium Term Notes 5 years 30%/ 5% per
issuer A/A-1 or Higher
53601(n) Non-negotiable Certificates of
Deposit 5 years
25%
$1 million per
issuer
-
53601.8
(a)-(h)
Certificates of Deposit through
Account Registry Services 5 years
30% Aggregate
Maximum Up to
the FDIC Insured
Limit Per Issuer
-
16429.1 State of California LAIF N/A None -
53601(k) *Mutual Funds None 15% AAAm/Aaa/AAAV1+
53601(k) *Money Market Mutual Funds None 15% AAAm/Aaa/AAAV1+ 53601(o)
Asset-Backed, Mortgage-Backed,
Mortgage Pass-Through
Securities, and Collateralized
Mortgage Obligations
5 years 20%/5% per issuer AA or higher
53601(q) Supranationals 5 years 30% AA or higher

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Investment Policy Date: September 5, 2023

CA. Gov’t.

Code
Section

Authorized Investment

Maximum
Maturity

Authorized
Investment Limits -
% of Portfolio

Credit Rating Limit

53601(p) Shares of a joint powers authority N/A None AAA or higher *Combined total not to exceed
20% per State 20%

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Investment Policy Date: September 5, 2023

EXHIBIT A

GLOSSARY

Banker's Acceptance. This is a negotiable time draft (bill of exchange) with a maturity of six months or less drawn on and accepted by a commercial bank. Banker's Acceptances are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable commodities. Per State Law, cities may not invest more than 30% of idle cash in Banker's Acceptances.

Certificate of Deposit (CD's). - is a receipt for funds deposited in a bank or savings and loan association for a specified period of time at a specified rate of interest. The first $ 250,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC). CD's with a face value in excess of $ 250,000 can be collateralized by Treasury Department Securities, which must be at least 110% of the face value of the CD's, in excess of the first $250,000, or by first mortgage loans which must be at least 150% of the face value of the CD balance in excess of the first $250,000.

Delivery Versus Payment (DVP). - Delivery versus payment (DVP) is a securities industry settlement method that guarantees the transfer of securities only happens after payment has been m ade. DVP stipulates that the buyer's cash payment for securities must be made prior to or at the same time as the delivery of the security.

Local Agency Investment Fund (L.A.I.F.). - The L.A.I.F. was established by the state of California to enable treasurers to place funds in a pool for investments. There currently is a limitation of $75 million per agency subject to a maximum of 15 total transactions per month. The City of Campbel l uses this fund when interest rates are declining as well as for short-term investments and liquidity.

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Investment Policy Date: September 5, 2023

agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

U.S. Treasury Notes . These are marketable, interest -bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years. Interest is paid semi-annually.

U.S. Treasury Bonds . These are the same as U.S. Treasury Notes except they have original maturities of ten years or longer.

U.S. Government Agency Issues. Are securities that are unconditionally backed by the full faith and credit of the United States, including: Government National Mortgage Association (GNMA), Farmers Home Administration (FmHA), Small Business Administration (SBA), General Services Administration (GSA), Federal Housing Administration (FHA) and Housing and Urban Development (HUD).

U.S. Government Instrumentality Issues. Are government sponsored enterprises that are backed by the creditworthiness of the issuing agency, not the full faith and credit of the U.S. government.

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Attachment: Investment Policy FY 2023-24 (CLEAN) (Annual Investment Policy Update FY 2023-24)

To: Finance Sub-Committee

Date: August 21, 2023
From: Will Fuentes, Finance Director

Subject: Investment Strategy for FY 2023-24

BACKGROUND

The investment policy establishes procedures and guidelines by which the City’s surplus funds can be managed in a prudent and fiscally sound manner. The policy encompasses those funds over which the City exercises fiscal control and prioritizes the objectives of public funds management as safety, liquidity and yield, in that order and consistent with guidance provided by the Government Finance Officers Association (GFOA). It also stipulates allowable and unallowable investment alternatives as well as establishes parameters for selecting broker/dealers and institutions with which the City may do business.

California Government Code Section 53646 (a) (2) recommends that on an annual basis, the City Investment Policy be submitted to its legislative body and any oversight committee for consideration at a public meeting. The Finance Sub-Committee is the oversight committee responsible for review of the Investment Polic y. In addition to review of any proposed revisions to the Investment Policy, staff has prepared a report summarizing the past year’s economic conditions and the recommended Investment Strategy for managing the City’s available invested funds in FY 2023-24.

INVESTMENT OBJECTIVES AND OVERVIEW
The City’s policy is to invest public funds in a prudent manner, provide for maximum security while meeting daily cash flow needs and comply with applicable statutes. Chief among the objectives outlined in the Investment Policy are safety, liquidity and return, in that specific order and again consistent with GFOA guidance. Within this framework , a number of investment choices are provided to allow flexibility in meeting these objectives. The City continues to take a conservative approach with its investments and that is reflected in the currently recommended investment policy.

As a means to implement the policy, it is important to develop a strategy for achieving the s
tated objectives. Likewise, the strategy should be reviewed periodically to determine whether it needs to be modified in light of changing economic and financial conditions. This document will serve as the City’s investment strategy for the next year and will be reviewed annually in conjunction with the review of the City’s investment policy or sooner if conditions warrant.

CITY OF CAMPBELL MEMORANDUM
Finance Department

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SUMMARY OF CURRENT STRATEGY AND RECOMMENDATIONS
Staff’s recommended Investment Strategy for FY 2023- 24 is similar to the prior year, but adds the recommendation that use of external i nvestment advisors be allowed and that vendor proposals be obtained for future Council consideration. As such, i t is recommended that the City continue to maintain sufficient liquidity to cover daily operati ng cash flows for a minimum of 3 months to provide a reasonable cushion for fluctuations in the portfolio balance and for unforeseen emergencies. Average monthly disbursements over the last fiscal year (FY 2022-23) were approximately $7.4 million. Therefore, staff recommends retaining a target of $22.2 million (3 months) in the Local Agency Investment Fund (LAIF) or similar secure, stable, and liquid pooled investment fund. Last fiscal year, due an rising interest rates, staff invested in a number of fixed income investment opportunities outside of LAIF; thereby providing a higher, yet still safe return consistent with the City’s Investment Policy. With current fixed income investment rates between 4.4% and 5.4% for 3-month to 5-year maturities, respectively, staff recommends continuation of this investment strategy for FY 2022- 23, with no changes from the prior fiscal year approach; except again for potential use of an external investment advisor to improve returns even further. Should the economy decline, requiring that the City to maintain greater liquidity, staff will re -evaluate this strategy and update the Finance Sub-Committee and the City Council. However, staff believes that it is a fiscally prudent strategy given a variety of different economic conditions and one that remains consistent with the City’s Investment Policy.

And similar to last f iscal year and consistent with Investment Policy, staff (and its advisors) will again look for individual maturities of no more than 5 years, while maintaining a portfolio weighted average maturity of 3 years or less. The interest rate yield curve is currently inverted, with maturities 1 year and less hovering around 5.4% and maturities greater than 1 year and less than 5 years earning between 5.4% and 4.4%. This presents opportunities to invest for shorter periods of time and earn greater return, but the City would be wise to also invest in longer term maturities so as to lock in returns which are still elevated through the 5 year maturities. Interest rates for fixed income investments have continued to improve significantly this past year due to the Federal Open Market Committee (FOMC) taking a very aggressive strategy of ramping up the Federal Funds Rate to bring rising inflation under control. With inflation subsiding in recent months, the FOMC may begin to slow down or pause rate adjustments. However, at the July 2023 FOMC meeting Federal Reserve Chair Powell maintained that the FOMC will remain data dependent going forward, and that they do not anticipate a recession, leaving the option open for the possibility of additional rate hikes in the future if needed to further control inflation. While these rate adjustments have been a great benefit to the City’s investment returns, they could also potentially increase future debt costs of the City if new debt were issued.

Please note that as
of June 30, 2023 , the City had $27.0 million invested in fixed income government securities and corporate notes. Additionally, as of June 30, 2023, the City had $74.99 million invested in LAIF, with an annual return of 2.17%. This compares with $74.99 million invested in LAIF as of June 30, 2022 and an annual LAIF return of 0.371% at that time. LAIF holdings remained the same during the last fiscal year since the maximum that any public agency can invest in LAIF is $75.0 million. T hus, any City cash above this cap was placed in other investment options.

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ECONOMIC UPDATE AND OUTLOOOK
U.S. inflation data for the week ending August 11, 2023 provided encouraging indications of moderating inflation trends. The Consumer Price Index (CPI) witnessed a monthly increase of 0.2% in July, while the annual CPI experienced a slight rise to 3.2% due to an unfavorable year-over-year comparison. The core consumer price index, excluding volatile food and energy costs, showed a modest 0.2% rise for the second consecutive month, marking the smallest back-to-back increase in nearly two years and reaching a year -over-year total of

4.7%, down from 4.8% in June. The primary factor driving the CPI increase was housing costs, while used-car prices and airfares declined. Producer -price inflation rose by 0.3% in July, largely influenced by specific service categories, with a 0.8% increase from the previous year. Slight increases in goods prices were noted, particularly in food costs, while core goods prices, excluding food and energy, remained steady following a decline in June.

These trends are likely to influence the Federal Reserve's stance on the future direction of monetary policy at the September meeting.

As for other economic data, the week ending August 11 also saw an unexpected surge in U.S. consumer borrowing in June 2023, with total credit increasing by $17.8 billion. This growth was largely attributed to increases in non- revolving credit, including school tuition and vehicle loans. In contrast, revolving credit, which includes credit cards, home equity lines of credit, and personal lines of credit, among others, decreased by $604.5 million, indicating potential shifts in consumer spending behavior. Despite concerns about high prices and financial constraints, robust consumer spending persisted due to steady w age growth and low unemployment rates. U .S. small-business sentiment reached an eight -month peak in July, as the National Federation of Independent Business index rose by 0.9 to 91.9, signaling a more optimistic economic outlook. More respondents expressed intentions to expand employment, invest in capital, and increase inventories in July. This sentiment aligns with improvements in consumer sentiment measures, suggesting the possibility of improved small business activity despite tight credit conditions and inflation concerns.

Nevertheless, in spite of some encouraging economic news, on August 2, the U.S.

Treasury's credit rating was downgraded by Fitch, a nationally recognized statistical ratings organization that assesses creditworthiness of various institutions, including sovereign entities. The rating was lowered from the highest level of “AAA” to “AA+”, which is only one notch below the highest possible credit rating of “AAA.” The action comes just two months after Fitch warned that it was weighing cutting the credit rating when lawmakers were in political battles over raising the nation’s debt limit. The downgrade cast a shadow over other economic news. In addition to the downgrade of the U .S. Treasury, Fitch subsequently downgraded Government Sponsored Enterprises (GSEs); Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), and the Farm Credit System’s (FFCB) Long-Term Ratings to “AA+” from “AAA”. According to Fitch, a key rating driver for these GSEs is the benefit provided from the implicit government support which directly links them to the U.S. sovereign rating. On Thursday, Fitch also downgraded Tennessee Valley Authority (TVA) and Private Export Funding Company (PEFCO) from “AAA” to “AA+”.

During the week ending August 4, 2023, the Senior Loan Officer Survey on Bank Lending Practices was released reflecting tighter credit standards and weaker loan demand from both businesses and consumers during the second quarter. The report, which Fed

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policymakers had access to before their July meeting, suggests credit tightening is ongoing.

The ISM Manufacturing Index rose slightly to 46.4 in July from 46.0 in June but was below survey expectations and has been in contraction territory for nine straight months. The ISM Services Index fell to 52.7 in July from the prior months reading of 53.9 but in contrast with U.S. manufacturing, the U.S. service sector has remained in positive territory (above 50) for seven straight months signaling continued expansion.

Investors' heightened concerns about rising borrowing costs was a catalyst in moving U.S. stock prices lower for the week ending August 4 while longer term Treasuries experienced a selloff before a small rebound post the A ugust 4 employment report. The 2-year treasury is down 8 basis points to 4.80% after starting the week ending August 4 at 4.88%, and the 10-year is up 13 basis points to a nine- month high of 4.09% as of August 4. The yield inversion between the 2-year and 10-year treasury narrowed, ending the week of August 4 at approximately 71 basis points.

Housing prices nationwide dipped 1.7% year -over-year in May 2023 according to the S&P CoreLogic Case Shiller Index. Chicago topped the 20-city list with a gain of 4.6%, while San Francisco and Seattle both saw price declines of slightly over 11% over the last year. Tight inventories and 30-year fixed mortgage rates of around 7% continue to impact affordability.

New Home Sales for June were down 2.5% after three consecutive months of gains, but were still up 23.8% year-over-year.

On the employment front, U.S. employers added fewer jobs than expected in July while the unemployment rate moved slightly lower to 3.5% from 3.6%. Nonfarm payrolls rose 187,000 last month following a revised 185,000 in June. Job gains were led by health care, financial activities, and construction. Average hourly earnings growth was up 0.4% for the month and

4.4% year-over-year. These wage gains provide support for the consumer by outpacing the current rate of inflation. July average hourly earnings were higher than respective estimates of 0.3% and 4.2%. The participation rate remained steady for the fifth straight month at

62.6%. Overall, this labor report can be characterized by soft job gains offset by higher-than- expected wage growth. Additional employment data released this week included the Job Openings and Labor Turnover Survey (JOLTS) report for June which fell to 9.58 million. This was down slightly from the prior month and significantly lower than the 10.3 million reported in April. Although trending lower, by historical standards job openings continue to reflect a strong level of labor demand and equates to approximately 1.6 jobs for every unemployed worker. Jobless claims numbers released on Thursday also accentuated the resilient demand for workers.

In California, total nonfarm employment in the state increased by 11,600 jobs over the month of May 2023. However, statewide unemployment increased to a rate of 4.6% in June 2023; up from 4.5% in May 2022 and 3.9% in June 2022. In Santa Clara County, the rate increased to 3.6% in June 2023; up from 3.2% in May 2023 and 2.7% in June 2022. And in Campbell, the rate increased to 3.1% in June 2023; up from 2.8% in May 2023 and 2.3% in June 2023.

At its pandemic high point in April 2020, the Campbell unemployment rate had reached

11.2%.

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PORTFOLIO BALANCE
For the fiscal year ended June 30, 2023 , the City’s average portfolio balance was approximately $95.5 million and the average yield for the fiscal year was 2.25%. This compares to an average portfolio balance of $56.1 million and an average yield of 0.47% for fiscal year ended June 30, 202 2. The higher FY 2023 yield was the result of both higher fixed income investment returns and higher LAIF returns.

As of June 30, 202 3, the City’s investment portfolio was valued at approximately $102.0 million. This was comprised of approximately $74.9 million (73.53%) in LAIF, $26.0 million (25.49%) in US Government Agency securities, and $1.0 million (0.98%) in corporate notes or money market accounts with a small residual balance in our M easure O Bonds Cost of Issuance (COI) accounts. Almost all these funds are considered “discretionary” investments meaning that the City can invest this amount as it sees fit within the guidelines of the Investment Policy. With a minimum holdback of at least $2 2.4 million for cash flow, that leaves up to $79.6 million that can be invested in Agency and other securities (limitation of 75% of portfolio per investment policy). $27.0 million is again currently invested outside of LAIF and staff will continue increasing this throughout the fiscal year as needed as fixed income investment rates remain elevated.

DISCUSSION OF ALLOWABLE INVESTMENTS
The City’s revised investment policy contains a listing of allowable investment instruments along with specified limits and maturities. These include:

 State of California Local Agency Investment Fund (LAIF)  US Treasury Bills, Notes & Bonds
 US Government Agency Issues (e.g., FNMA & GNMA)
 Corporate Medium-Term Notes
 Banker’s Acceptances
 Certificates of Deposit with banks or savings & loan associations  Repurchase Agreements
 Commercial Paper
 Mutual Funds (allowed by Calif. Gov’t Code Sec. 53601(a)-(m))  Shares of Beneficial Interest Issued by a Joint Powers Authority (JPA) (allowed by Calif. Gov’t Code Sec. 6509.9)
It is the City’s experience that LAIF provides a safe short -term investment vehicle, and the City has utilized it for its primary source of investment earnings for many years. This fund is generally viewed as a conservative and safe investment choice. In fact, the City is not aware of any municipality that has ever experienced a loss of principal in LAIF. One characteristic of LAIF is that, due to its size (combined State Investment Pool assets valued at approximately $173.5 billion as of July 31, 2023) the rate of return will typically lag the current market. Thus, in periods of rising interest rates, LAIF may have a lower return. Conversely, in a declining market, LAIF will provide investors with an above-market return. The yield as

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of June 2023 was approximately 3.15% compared to 0.75% one year ago. LAIF yield is expected to increase to a range of 3.80% to 4.15% by the end of calendar year 2023 due to the overall increase in other fixed income investment rates. In addition to improving returns, a key benefit of using LAIF (or similar pooled investment pools) is that it again offers a high degree of liquidity whereby funds can generally be requested and received in the same day.

Another benefit is that a minimum of staff administrative effort is required, enabling the time to be spent on other departmental priorities.

US Treasuries are also considered to be one of the safest investment choices available to municipalities due to their being backed by the full faith and credit of the United States Government. However, because of their popularity and under current market conditions, the rate of return tends to be lower than other types of securities. As of August 17, 2023 the 6- month and 2-year term Treasuries are yielding 5.47% and 4.94%, respectively. The 5-year Treasury has a yield of 4.40%. These rates have increased significantly from a year ago due to actions by the Federal Reserve to increase the Federal Funds Rate. For reference, please see Chart 1 below for a year-over-year comparison of the treasury yield curve as of August 17, 2023 and as of July 27, 2022. The current yield curve , as noted previously, is inverted in the out years; suggesting investors expect additional near -term rate hikes and are pessimistic about economic growth. Although an inverted yield curve might be the most reliable indicator of a looming economic downturn, it can also be very imprecise at forecasting the onset of recession. The yield curve has been inverted now for over one year.

Chart 1 – Treasury Yield Curve Comparison

U.S. Agency issues also provide a safe and acceptable rate of return and are still considered a safe investment choice (AAA rated) . Agencies can be “callable” meaning they can be redeemed by the issuer prior to maturity or “non- callable (bullet)” meaning they cannot be redeemed prior to maturity. Agencies also issue “discount notes” which have shorter term issues, generally less than 18 months, in which the note is bought at a deep discount and redeemed for face value at maturity. The City has historically purchased primarily callable structured rate agencies to maximize its yields and minimize interest rate risk in the future.

5.37 5.47 5.35

4.94 4.65 4.52 4.4

2.48 2.92 2.99 3.05 2.98 2.91 2.85
0 1
2 3
4 5
6 3mo 6mo 1yr 2yr 3yr 4yr 5yr
Precent (%) Rate
Maturity Term
As of August 17, 2023 As of July 27, 20222

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With respect to the upcoming year, it is anticipated that investments outside of LAIF will continue to be made primarily in callable agency securities with some rate protection and an average term of two to four years. Staff, with the possible assistance of external investment advisors, will also evaluate other types of investments allowed by policy that may have yields in excess of LAIF and agency issues, such as short-term commercial paper, corporate notes rated AA or higher , and non -callable agency issues, or other investments that lock in an acceptable rate of return for a longer period of time than LAIF.

RECOMMENDATION
It is recommended that the Finance sub-Committee approve the proposed strategy.

Distribution:

Anne Bybee, Vice Mayor
Sergio Lopez, Council Member
Brian Loventhal, City Manager

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City
Council
Report

TITLE: Consider Nominating New Priority Development Areas (PDAs) and Priority Sites to be Included in Plan Bay Area 2050+ for Future Planning, Infrastructure, and Ho using Funding Opportunities (PLN - 2023-91) (Resolution / Roll Call Vote)

RECOMMENDED ACTION

That the City Council adopt a Resolution amending the boundaries of the Central Campbell Redevelopment Area Priority Development Area (PDA), renaming the Central Campbell Redevelopment Area Priority Development Area (PDA) the Central Campbell Priority Development Area (PDA) and establishing the Hamilton Avenue Precise Plan as a new Priority Development Area (PDA) as set forth in Option 1, and nominating all sites included in Table 2 as Priority Sites.

EXECUTIVE SUMMARY
On April 13, 2023 , the Association of Bay Area Governments (ABAG) and the Metropolitan Transportation Commiss ion (MTC) announced an opportunity for local governments to nominate new , or modify existing, Priority Development Areas (PDAs)1 and nominate new Priority Sites 2 to be included in Plan Bay Area 2050+ for future planning, infrastructure, and housing funding opportunities. The deadline to submit an application to amend the boundaries of an existing PDA, or nominate new PDAs and local Priority Sites, is September 30, 2023.

The purpose of this report is to present the criteria and options identified by staff for Campbell to nominate a PDA and request PDA boundaries amendments and nominate Priority Sites, and to seek Council authorization to submit the nominations to ABAG.

BACKGROUND
Priority Development Areas
Priority Development Areas (PDAs) are districts mapped by MTC / ABAG near public transit that are planned for new homes, jobs, and community amenities. MTC / ABAG has identified PDAs in its regional planning document, Plan Bay Area and created related grant funding opportunities as follows:

1 Priority Development Areas (PDAs) are districts near public transit that are planned for new homes, jobs, and community amenities. The City of Campbell has one PDA, the Central Campbell Redevelopment Project Area. 2 Priority Sites are places close to services and public transit planned for a large number of homes that are affordable to households with a wide range of incomes. There are no sites in Campbell currently designated as Priority Sites.

Item: 17
Category: NEW BUSINESS
Meeting Date: September 5, 2023
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• PDAs are used in Regional Transportation Plans, such as Plan Bay Area 2050, to integrate land use and transportation plannin g to reduce greenhouse emissions and promote sustainable community development to comply with State Greenhouse Gas reduction laws (SB 375, 2008).
• MTC / ABAG has provided funding to cities with PDAs under various programs and initiatives (i.e., One Bay Area Grant, PDA Planning Grant). • PDAs have been used as a factor in the Regional Housing Needs Allocation (RHNA) process.

The City of Campbell has one PDA, the Central Campbell Redevelopment Project Area, which was established in 2007, as part of a regional planning initiative (d.b.a. “FOCUS”) in coordination with the Bay Area Air Quality Management District (BAAQMD). The City’s existing PDA boundaries were established to align with the northerly portion of the Central Campbell Redevelopment Project Area, pri or to the dissolution of the Redevelopment Agency in 2012.

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Figure 1: Central Campbell Redevelopment Area Priority Development Area (PDA)

On February 21, 2023, the City Council authorized the submittal of a Planned Development Area (PDA) Planning Gran t application for the development of the Hamilton Avenue Precise Plan to address safe pedestrian access and develop a more specific vision for the redevelopment of properties along the Hamilton Avenue corridor, east and west of the Highway 17 interchange, consistent with Policy LU -9.a. of the 2040 General Plan . While the boundaries of the Hamilton Avenue Precise Plan do not fall entirely with the City’s existing Priority Development Area (PDA), the partial overlap qualified the project for consideration for One Bay Area 3 (OBAG 3) grant funding.

On June 28, 2023, the City was awarded $400,000 for its PDA Planning Grant for the development of the Hamilton Avenue Precise Plan.

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Priority Sites
The Priority Sites Program is a new program recently created by MTC / ABAG that was developed as part of Plan Bay Area 2050. Priority Sites are places close to services and public transit planned for a large number of homes that are affordable to households with a wide range of incomes. The Priority Sites Program provides technical assistance and funding for sites nominated by local governments and affordable housing developers. Sites will also be included in the update to Plan Bay Area 2050 – Plan Bay Area 2050+ – and will be considered for additional funding for infr astructure, housing and planning.

There are no sites in Campbell currently designated as Priority Sites.

DISCUSSION
The following discussion summarizes criteria used to nominate Priority Development Areas and Priority Sites and outline key options and related benefits and drawbacks to their designation.

Priority Development Areas (PDAs)

PDAs are designated in places near public transit and planned for new homes, jobs, and community amenities. PDAs are intended to help reduce greenhouse gas emissions by enabling residents to adopt a car -free/light lifestyle and promote greater equity by increasing access to housing, economic, and cultural opportunities.

PDA Nomination Criteria : To be eligible for nomination, PDAs must fall within either a “Transit-Rich3” or “Connected Community4” designated area as depicted on the following map of the City:

3 Transit Rich PDAs have at least 50% of the area within ½ mile of: 1) an existing rail station or ferry terminal (with bus or rail service); 2) a bus stop with peak service frequency of 15 minutes or less and/or; 3) a planned rail station or planned ferry terminal (with bus or rail service) in the most recently adopted fiscally constrained Regional Transportation Plan.
4 Connected Community PDAs are : 1) entirely within ½ mile of a bus stop with peak service of 30 minutes or less; 2) beyond the ½ mile of transit service that meets the “high quality transit” criteria for Transit-Rich PDAs; and meets at least one of the following criteria: A) At least 50% of the area is defined as a High Resource or Highest Resource on the most recent Opportunity Map adopted by HCD; or B) At least 2 policies have been adopted to reduce Vehicle Miles Traveled, such as prioritization of bicycle and pedestrian planning projects. 17 Packet Pg. 246
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Figure 2: Areas Eligible for Designation as a Priority Development Area (PDA)

In addition to falling within an eligible area, all PDAs must be locally nominated by the local government with land use authority (i.e., requires adoption of a City Council Resolution) and include a plan for significant housing growth and/or housing and employment growth that is reflected in the General Plan or Zoning Ordinance with an Area Plan with Programmatic EIR completed by 2025.

PDA Nomination Considerations : In consideration of the PDA nomination criteria, staff has identified three poten tial options for Council consideration in nominating Priority Development Areas. An analysis of each option, and potential benefits and drawbacks are summarized at the end of this section.

➢ PDA Option 1 – Establish Hamilton Avenue PDA & Align Existing PDA with Area Plan Boundaries (Staff Recommended)

As the staff recommended approach, under Option 1 the city would seek to nominate the Hamilton Avenue Precise Plan Area as a new Priority Development Area (PDA) and amend the boundaries of the existing Centra l Campbell Redevelopment Project Area (PDA) (see Figure 1) to align with the limits of the Winchester Boulevard Master Plan, Downtown Development Plan, East Campbell Avenue Area Plan, and Pruneyard/Creekside Commercial District. As part of this option, the “Central Campbell Redevelopment Project Area” Priority Development Area (PDA) would be renamed to 17 Packet Pg. 247
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be the “Central Campbell” Priority Development Area (PDA) , recognizing that Campbells Redevelopment Agency no longer exists.

Once established, the new and amended PDAs will align with existing and proposed area plan boundaries, including the proposed Hamilton Avenue Precise Plan , in furtherance of Policy LU 9.a of the 2040 General Plan. As this option presents the greatest alignment between Campbell’s identified plan boundaries and PDAs for future refinement and development, it is the option recommended by staff.

Option 1: Hamilton Avenue PDA & Align Existing PDA with Area Plan Boundaries

➢ PDA Option 2 (Establish Hamilton Avenue PDA & Amend Existing P DA Boundary to Also Include Additional Eligible Commercial and Mixed -Use Properties):

Under Option 2, the City could establish the Hamilton Avenue Precise Plan Area as a new Priority Development Area (PDA) (the same as presented in Option 1) and instead of amending the boundaries of the existing PDA to align with area plan boundaries, largely maintain the existing PDA boundary while also adding additional eligible commercial and mixed -use properties where contiguous to the existing PDA in areas 17 Packet Pg. 248
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where new homes, jobs, and community amenities may be prioritized. The intent of this option would be to expand the existing PDA with include adjacent commercial corridors where future growth could occur through commercial and residential development.

Option 2: Hamilton Avenue PDA & Amending Existing PDA Boundary to Also Include Additional Eligible Commercial and Mixed-Use Properties

➢ PDA Option 3 (Nominate All Eligible Areas as PDAs):

Under this option, the city would seek to nominate all eligible properties in the City as Priority Development Areas that are located with MTC’s mapped “Transit Rich” and “Connected Community” areas . Other cities such as San Jose have used this more expansive a pproach in designating their PDA’s. While Option 3 would result in the greatest percentage of the City designated as a PDA, and therefore maximize future grant funding opportunities, Option 3 is not recommended in consideration that it includes significan t areas where planned housing and employment growth is not anticipated/desired (i.e., lower-density residential neighborhoods).

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Option 3: Nominate All Eligible Areas

Table 1 – Summary of PDA Options
Option Number Potential Benefits Potential Drawbacks
Option 1 (Staff Recommended)

Establish Hamilton Avenue PDA
& Amend Existing PDA Boundary
to Align with Plan Boundaries

• Aligns PDA boundaries
with General Plan and
Hamilton Avenue Precise
Plan effort.

• Able to rely on exiting
plans rather than being
required to create new
plans by 2025.

• Less geographic
areas in the city
eligible for grant
funding.

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Table 1 – Summary of PDA Options
Option Number Potential Benefits Potential Drawbacks
Option 2

Hamilton Avenue PDA &
Amending Existing PDA
Boundary to Also Include
Additional Eligible Commercial
and Mixed-Use Properties

• Retains all areas within
the existing PDA while
also adding additional
eligible properties not
included in Option 1.

• Avoids the inclusion of
lower-density areas
included in Option 3.

• Requires the City to
establish plans for
newly designated
areas.

Option 3

Nominate All Eligible Areas as
PDAs

• Results in the greatest
grant funding
opportunity.
• Requires the City to
establish plans for
newly designated
areas.

• Includes areas that do
not cleanly align with
the purpose of
designating an area
as a PDA (i.e., single-
family homes)

Priority Site Designations

As a new program created by MTC / ABAG , the Priority Sites Program is intended to create a pipeline of locally prioritized, regionally significant sites, that may be transformed into centers of the community thro ugh targeted planning and investment.

Priority Sites are designated in places close to services and public transit and that are planned for a significant number of homes affordable to a wide range of incomes.

Priority Sites that are adopted by ABAG/MTC may be eligible to receive funding and technical assistance. As an example, one upcoming funding opportunity will be through ABAG/MTC’s Pilot Program, which intends to allocate up to 28 million dollars to accelerate the development of select Priority Sites from the predevelopment phase through groundbreaking. To qualify for the pilot project funding opportunity , projects must meet all of the following criteria:

• Located on a nominated Priority Site.
• Involve predevelopment, land acquisition, and construction of affordable housing. • Secure ownership and/or entitlements (except where predevelopment funding is requested).
• Propose 25% or more of units to be affordable to 80% AMI.

Priority Site Nomination Criteria : To be eligible for nomination, Priority Sites must be 17 Packet Pg. 251
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located within a Plan Bay Area 2050 Growth Geography or Transit Priority Area as depicted on the following map:

Figure 3: Areas Eligible for Designation as a Priority Site (City Limit Approximated by Staff)

In addition to falling within an eligible area, all Priority Sites must satisfy one of the following three “development capacity” categories (staff notes on potentially qualifying sites, an d their relationship to General Plan and Housing Element policies and programs for future growth and development, follow each point in italics):

1. Regionally Significant: Site with capacity for 500 or more homes;

Only three sites in Campbell have a planne d housing development capacity for more than 500 homes. These include:

• Former Fry’s Electronics (418 to 551 units);
• Campbell Plaza (a.k.a., Safeway on Winchester Blvd.) (739 to 972 units); and • Campbell Technology Park (467 to 619 units).

In consideratio n of the sites meeting the Regionally Significant criteria, all three are identified Housing Opportunity sites in the 2023 -2031 Housing Element. Of the sites 17 Packet Pg. 252
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identified, Fry’s Electronics and Campbell Plaza both have a Transit -Oriented Mixed - Use land use d esignation, and further located within the boundaries of existing (Campbell Plaza: Winchester Boulevard Master Plan) or future area plans (Frys – Hamilton Avenue Precise Plan) that anticipate further growth and development.

2. Community Anchor : The Communit y Anchor category establishes two sub - categories to qualify.

In the first sub-category, sites with a capacity for 100 -4995 homes and potential for 10,000 square feet or more of civic/cultural space are included. T here are seven (7) qualifying sites under the first category in Campbell as follows:

• 500 E. Hamilton Avenue (Staples)
• 2460 S. Winchester Boulevard (Summer Winds)
• 1763 S. Winchester Boulevard (Home Church)
• 290 Dillon Avenue (Corporation Yard)
• 1475 S. Bascom Avenue (Creekside Business Mall)
• 262 - 282 E. Hamilton Avenue (Hamilton Business Park) • 700 W. Hamilton Avenue (Culinary Arts / Former Gold Gym)

In the second sub-category, sites with capacity for at least 25% of the jurisdiction’s 2023-2031 RHNA allocation and potential for 10,000 square feet or more of civic/cultural space, may qualify. Under this second set of criteria, only one site in Campbell qualifies:

• Campbell Technology Park6

In consideration of the sites meeting the Community Anchor criteria, all eight are identified Housing Opport unity sites in the 2023 -2031 Housing Element. Further, all sites excepting 290 Dillon Avenue, 700 W. Hamilton Avenue, and Campbell Technology Park are located within area plans which anticipate future growth and development.

3. Public Sites Portfolio : Parcel (s)7 owned by a single public agency that have a development capacity for 200 or more homes in a locally adopted plan, zoning, or project entitlement.

Only one City -owned property in Campbell qualifies under this category with a development capacity of 207 units:

5 While 251 Llewellyn Avenue also has capacity for the home count the “Medium Density Residential” land use designation assigned to the property does not provide for civic or cultural activities. 6 The City’s RHNA allocation resulted in an assignment of 742 very-low-income units, and 434 low-income units. For a site to qualify, the site would need to be projected to support a minimum of 294 (25% of the 1176 lower income units). The Campbell Technology Park qualifies as it was projected to provide up to 410 lower income units based on the HCD methodology established in the adopted and certified 2023-2031 Housing Element. 7 While the “public sites portfolio” criteria imply a requirement for “multiple parcels” to qualify, ABAG/MTC staff have confirmed that a single property is eligible under this category qualify. 17 Packet Pg. 253
Nomination of PDAs and Priority Sites Page 12 of 13
• 290 Dillon Avenue (City Corporation Yard)

In consideration of the single site meeting the Public Sites Portfolio criteria, the development of the City Corporation Yard would serve multiple housing goals and objectives.

Table 2 - Summary of Potential Priority Sites
Criteria Eligible Sites (Staff Recommended)
Regionally Significant • Former Fry’s Electronics (418 to 551 units); • Campbell Plaza (a.k.a., Safeway on Winchester Blvd.) (739 to 972 units) • Campbell Technology Park (467 to 619 units)

Community Anchor • 500 E. Hamilton Avenue (Staples)
• 2460 S. Winchester Boulevard (Summer Winds)
• 1763 S. Winchester Boulevard (Home Church)
• 290 Dillon Avenue (Corporation Yard)
• 1475 S. Bascom Avenue (Creekside Business Mall)
• 262 - 282 E. Hamilton Avenue (Hamilton Business Park) • 700 W. Hamilton Avenue (Culinary Arts / Former Gold Gym)

Public Sites Portfolio • 290 Dillon Avenue (City Corporation Yard)

Staff Recommendation on Priority Sites : In consideration that all eligible sites, identified by Table 2 above , were identi fied as Housing Opportunity Sites by the 2023 -2031 Housing Element, representing areas of growth in the City, designating the sites identified would be in furtherance of multiple housing related goals and objectives outlined in the plan. Further, in consideration that there are no drawbacks to nominating a local Priority Site, staff recommends nominating all eligible sites to maximize future grant funding opportunities.

FISCAL IMPACTS
There are no direct fiscal impacts from the recommended action.

ALTERNATIVES

1. Postpone consideration until the next opportunity to apply to change the PDA boundaries (Note: While no timeline has been established, typical nomination windows take place every four-years to align with updates to Plan Bay Area).

2. Provide direction to staff to modify the PDAs options or remove/add Priority Sites and authorize submittal of revised documents reflecting changes to ABAG/MTC without returning to City Council for review.

17 Packet Pg. 254
Nomination of PDAs and Priority Sites Page 13 of 13

3. Continue the item, requesting staff to return to Ci ty Council reflecting requested modifications or changes for consideration at its meeting of September 19, 2023, in order to meet the September 30, 2023, deadline.

Prepared by:

Stephen Rose, Senior Planner
Reviewed by:

Rob Eastwood, Community
Development Director
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Draft Resolution
17 Packet Pg. 255

RESOLUTION NO. ______________

BEING A RESOLUTION OF THE CITY COUNCIL OF TH E CITY OF CAMPBELL

AMENDING THE BOUNDARIES OF THE CENTRAL CAMPBELL

REDEVELOPMENT AREA PRIORITY DEVELOPMENT AREA (PDA) , RENAMING

THE CENTRAL CAMPBELL REDEVELOPMENT AREA PRIORITY

DEVELOPMENT AREA (PDA) THE CENTRAL CAMPBELL PRIORITY

DEVELOPMENT AREA (PDA) AND ESTABLISHING THE HAMILTON AVENUE

PRECISE PLAN AS A NEW PRIORITY DEVELOPMENT AREA AS SET FORTH IN OPTION 1, AND NOMINAT ES ALL SITES INCLUDED IN TABLE 2 AS PRIORITY SITES
WHEREAS, on June 19, 2007 , the City Council designated the northerly portion of the former Central Campbell Redevelopment Project Area as the City’s Priority Development Area (PDA) as part of a regional planning initiative (d.b.a. “FOCUS”) in coordination with the Bay Area Air Quality Management District;
WHEREAS, the City of Campbell has one PDA, the Central Campbell Redevelopment Project Area, and no amendments to the boundaries of the existing PDA, or new PDAs have been proposed since it was established on June 19, 2007;
WHEREAS, on April 13, 2023 , the Association of Bay Area Governments (ABAG) announced an opportunity for local governments to nominate new Priority Development Areas (PDAs)1 and Priority Sites to be included in Plan Bay Area 2050+ for future planning, infrastructure, and housing funding opportunities;
WHEREAS, the deadline to submit an application to amend the boundaries of an existi ng PDA, or nominate new PDAs and local Priority Sites, is September 30, 2023; WHEREAS, Priority Development Areas (PDAs) are districts near public transit that are planned for new homes, jobs, and community amenities;
WHEREAS, to be eligible for nomination, PDAs must fall within either a Transit -Rich or Connected Community designated area as depicted by Figure 2 of the S eptember 5, 2023, City Council staff report;
WHEREAS, staff identified three potential options for consideration in nominating new Priority Development Areas and recommended Option 1 as outlined in the September 5, 2023 , City Council staff report on the basis that it aligns PDA boundaries with existing and planned area plan boundaries;
WHEREAS, Priority Sites are places close to services and public transit planned for a large number of homes that are affordable to households with a wide range of incomes; WHEREAS, to be eligible for nomination, Priority Sites must be located within a Plan Bay Ar ea 2050 Growth Geography or Transit Priority Area as depicted by Figure 4 of the September 5, 2023, City Council staff report;
WHEREAS, to be eligible for nomination, Priority Sites must also satisfy one of three development capacity categories in which include Regionally Significant, Community Anchor, Public Site Portfolio designations;
1 Priority Development Areas (PDAs) are districts near public transit that are planned for new homes, jobs, and community amenities. The City of Campbell has one PDA, the Central Campbell Redevelopment Project Area.

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Attachment: Draft Resolution (Nomination of PDAs and Priority Sites) WHEREAS, staff identified sites in each development capacity category that are eligible for nomination;
WHEREAS, there are no known drawbacks to locally nominating Priority Sites; and WHEREAS, staff has recommended inclusion of all Priority Sites that meet the criteria for nomination as indicated by Table 2 of the September 5, 2023, City Council staff report.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell adopts a Resolution amending the boundaries of the Central Campbell Redevelopment Area Priority Development Area (PDA) and renaming the Central Campbell Redevelopment Area Priority Development Area the Central Campbell Priority Development Area (PDA) and establishing the Hamilton Avenue Precise Plan as a new Priority Development Area as set forth in Option 1 of the September 5, 2023, City Council staff report , and nominating all sites included in Table 2 of the September 5, 2023, City Council staff report as Priority Sites and authorizing the Community Development Director to submit any related application(s) for such changes and nominations to the Association of Bay Area Governments (ABAG).

PASSED AND ADOPTED this 5th day of September 2023, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

APPROVED:

Anne Bybee, Mayor
ATTEST:

Andrea Sanders, City Clerk

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Attachment: Draft Resolution (Nomination of PDAs and Priority Sites) City
Council
Report
TITLE: Resolution Amending the Agreement for City Manager Services (Resolution/Roll Call Vote)

RECOMMENDED ACTION
That the City Council adopt a Resolution amending the Agreeme nt for City Manager Services to provide for a merit increase and a cost -of-living adjustment, if certain conditions exist; and, updating the Salary Schedule to reflect the increase in the City Manager's compensation.

BACKGROUND
The City of Campbell (“City”) entered into an Agreement for City Manager Services with Brian Loventhal on December 5, 2016 (“Agreement”). Per the terms of the Agreement, the City Council is authorized to make amendments to the compensation of the City Manager by way of a City Council Resolution.

On June 20, 2023, the City Council concluded its yearly performance evaluation o f Brian Loventhal (hereafter, “ City Manager ”) and considered an appropriate compensation adjustment as well as language in the Agreement that would allow f or annual cost of living adjustments. Following their discussion, the City Council directed staff to return to the City Council with amendments to the Agreement for their consideration and approval, as more fully outlined below.

DISCUSSION
Following the City Manager recent annual performance evaluation, the City Council directed staff to return to them with updates to the Agreement for their consideration and approval.

Specifically, the City Council directed staff to return with language amending the Agreement to provide for a four percent (4%) salary increase, retroactively applied to the first full pay period of July 2023. This increase would be consistent with the negotiated cost -of-living adjustment given to all represented and unrepres ented labor groups for Fiscal Year (FY) 2024 and would align with the compensation of city managers in other comparable agencies, as well as w ith prevailing market trends . As such, the attached resolution and Third Amended Agreement for City Manager Services Item: 18
Category:

Meeting Date: September 5, 2023
18 Packet Pg. 258
Resolution Amending the Agreement for City Manager Services Page 2 of 3 reflect a salary increase of 4%, retro -active to the first full pay period in July 2023; thereby, increasing the City Manager’s annual salary from $335,025.60 to $348,420.80.

The City Council also directed staff to return with language amending the Agreement to provide for an automatic cost-of-living adjustment and not require individual City Council action each time the same was warranted.

California Government Code Section 3511.2 sets forth regulations regarding executive compensation. This section provides that any contract executed or renewed between a local agency and a local agency executive after January 1, 2012, cannot provide for an automatic renewal of a contract that includes an automatic increase in compensation exceeding a cost -of-living adjustment. As such, as long as automatic increases in an executive’s contract do not provide for increase s in excess of a cost-of-living adjustment, the City Council is authorized to approve an automatic adjustment to the City Manager’s compensation. Accordingly, the attached resolution and Third Amended Agreement for City Manager Services provide for an annual cost-of-living adjustment consistent with those provided to all Department Heads, so long as the adjustment does not exceed the California Consume r Price Index for Urban Wage Earners and Clerical Workers, as calculated by the Department of Industrial Relations.

This approach would streamline appropriate adjustment s to the City Manager’s compensation by eliminating the need for annual City Council action to effect uate an automatic salary increase based on the cost -of-living. The proposed language would also prevent the potential issue of compensation compaction over time and would mitigate the risk of inequitable adjustments where Department Heads receive an adjustment, but the City Manager does not.

Should the City Council approve the resolution and the Third Amended Agreement for City Manager Services , as proposed, staff requests the City Council also authorize an update to the City’s Salary Sche dule to reflect the increase in the City Manager’s salary range.

FISCAL IMPACT
The Third Amended Agreement for City Manager Services is fully funded within the Fiscal Year 2024 adopted budget at an amount that assumed annual cost -of-living increases, consistent with the City’s long range budget model.

At this time, staff is not requesting a budget adjustment for FY 2024 as the proposed salary rate of the City Manager is very close to the projected salary rate for FY 2024.

However, staff will continue t o evaluate all expenditures for FY 2024 and propose budget adjustments during the mid-year update in February 2024, if necessary.

ALTERNATIVES

1. Do not adopt the attached resolution.
18 Packet Pg. 259
Resolution Amending the Agreement for City Manager Services Page 3 of 3

2. Provide direction on different changes to the Agreement for City Manager Services.

Prepared by:

Angelique Gaeta, Assistant City
Manager
Attachment:
a. Resolution - City Manager 9.5.2023
b. Exhibit A: City of Campbell Salary Schedule 07.10.2023 City Manager c. City Manager Third Amended Agreement_Final_09052023
18 Packet Pg. 260
RESOLUTION NO. _______________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

AUTHORIZING THE AMENDMENT OF THE AGREEMENT FOR CITY MANAGER

SERVICES TO ADJUST THE SALARY FOR THE CITY MANAGER AND PROVIDE FOR COST-OF-LIVING ADJUSTMENTS; AND, AUTHORIZING AN AMENDMENT TO THE CITY’S ANNUAL SALARY SCHEDULE FOR THE CITY MANAGER

CLASSIFICATION
WHEREAS, the City Council entered into an agreement with Brian Loventhal for City Manager Services (“Agreement”), effective December 5, 2016; and WHEREAS, Section 2.1 6.020 of the Campbell Municipal Code provides that compensation for all appointed of ficers and employees of the City shall be fixed by Resolution; and
WHEREAS, California Public Employees ’ Retirement System ( “CalPERS”) issued Circular Letter 200-050-16 dated November 4, 2016, as a reminder to employers of the requirements for compensation earnable and publicly available salary schedules; and WHEREAS, all e mployers must comply with the compen sation earnable and publicly available salary schedules provisions contained within California Gove rnment Code Section 20636(d) and California Code of Regulations 570.5; and WHEREAS, it is necessary for the City Council to review and duly approve and adopt in accordance with requirements of applicable pu blic meet ings laws a publicly availa ble salary schedule; and
WHEREAS, on Ju ne 20, 2023, the City Council concluded its yearly performance evaluation of Brian Loventhal (“City Manager”); and
WHEREAS, based on t hat evalu ation, the City Council desires to app rove a n amendment to the Agreement that w ould provide for a four percent (4%) s alary increase, retroactively applied to the first full pay period of July 2023; and WHEREAS, this increase is consistent with th e negot iated cost -of-living adjustment given to all r epresented and unrepresented labor groups for Fiscal Year 2024, and maintains alignment with the compensation of city managers in other comparable agencies and with prevailing market trends; and
WHEREAS, the C ity Council further desires to amend the Agree ment to provide for annual cost-of-living adjustments without the need for additional City Council approval; and
WHEREAS, California Government Code Section 3511.2 sets forth regulations regarding executive compensation; and

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Attachment: Resolution - City Manager 9.5.2023 (Resolution Amending the Agreement for City Manager Services) WHEREAS, it is within the Ci ty Council’s purview to approve language in an executive contract that allows for an automatic adjustment to the City Manager’s compen sation provided it does not exceed a cost-of-living adjustment; and WHEREAS, the City Council desires to amend the Agree ment to provide fo r an annual cost-of-living adjustment pursuant to Government Code Section 3511.2 and consistent with tho se provided to all unclassified management employees , as lo ng as the adjustment does not e xceed the Califor nia Consumer Pri ce Index for Urban Wage Earners and Clerical Workers, as calculated by the Department of Industrial Relations; NOW, THEREFORE BE IT RESOLVED that the City Coun cil hereby approves a n amendment to the Agreement to adjust the salary of the City Manager to $348,420.80 per year to reflect a four percent (4%) salary increase, retroactively applied to the first full pay period of July 2023; and
BE IT FURTHER RESOLVED that the City Council hereby approves an amendment to the Agreem ent to provide f or an annual cost-of-living adjustment consistent with th at provided to unclassified management employees, so long as said adjustment d oes not exceed the California Consumer Price Index for Urban Wage Earners and Clerical Workers, as calculated by the Department of Industrial Relations; and BE IT FURTHER RESOLVED that the City Council hereby approves an amendment to the City’s Annual Salary Schedule, as reflected in Exhibit A for the Cit y Manager Classification.

PASSED AND ADOPTED this day of 2023, b y the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:
_____________________
Anne Bybee, Mayor
ATTEST:
__________________________
Andrea Sanders, City Clerk

18.a
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Attachment: Resolution - City Manager 9.5.2023 (Resolution Amending the Agreement for City Manager Services) Effective: 7/10/2023

CLASS CD JOB TITLE
Step 1 Step 2 Step 3 Step 4 Step 5
1005 CITY MANAGER UNC01 CMGR Hourly 167.51 - - - -
Bi-Weekly 13,400.80 - - - -
Monthly 29,035.07 - - - -
Annual 348,420.80 - - - -
Notes:
1) CMGR increase per Resoution

CITY OF CAMPBELL

POSITION CLASSIFICATION - CITY MANAGER
FY 23/24 - SALARY SCHEDULE

STEP RANGES
Range

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Attachment: Exhibit A: City of Campbell Salary Schedule 07.10.2023 City Manager (Resolution Amending

Page 1 of 4 ends

September 2023

THIRD AMENDED AGREEMENT FOR CITY MANAGER SERVICES
WHEREAS, on or about November 2, 2016, the CITY OF CAMPBELL (hereinafter referred to as “City”) and BRIAN LOVENTHAL (hereinafter referred to as “City Manager”) entered into an agreement appointing him as City Manager effective December 5, 2016; and WHEREAS, City desires to continue to employ the services of City Manager; and WHEREAS, City Manager desires to accept continued employment as city manager for the City; and
WHEREAS, the City desires to provide certain benefits, est ablish certain conditions of employment, and to set working conditions of the City Manager; NOW, THEREFORE, for and in consideration of each other ’s mutual promises, the undersigned parties agree as follows:

1. City Manager agrees to continue to perform the functions and duties of the City Manager of City as set forth in applicable State or local laws, ordinances, resolutions and policies, as well as such instructions and assignments as may be given to him by the Campbell City Counci l, until terminated, as provided by this Third Ame nd Agreement for City Manager Services (hereinafter referred to as “Third Amended Agreement”).

2. During his employment, City Manager shall receive the following salary and benefits:
a. The City Manager shall earn an annual salary of $348,4 20.80 per year beginning the first full pay period in July 2023. This salary may be adjusted at any time by Resolution of the City Council. The City Council shall review the City Manager’s Compensation annually, at such time as the City Council reviews the City Manager’s performance pursuant to section 3 of this Third Amended Agreement. In addition, the City Manager shall receive an annual cost-o f-living adjustment in an amount equal to that provided to City unclassified management employees by Resolution of the City Council, or equal to the California Consumer Price Index for Urban Wage Earners and Clerical Workers, as calculated by the Department of Industrial Relations, whichever is less;
b. In addition to the foregoing salary, the City Manager shall receive an automobile allowance of $225 per month to compensate him for the use of his personal vehicle for City business. In addition, the City Manager shall accrue vacation at the rate of 5.85 hours per pay period; shall accrue sick leave in accordance with the sick leave accrual schedule for executive employees; and shall receive all other be nefits normally and usually provided to City unclassified management employees as of June 28, 2021, unless specified herein or modified by Resolution of the City Council; provided, however that the City shall pay the full premium for any medical insurance coverage afford ed for the City Manager and his family members;
c. In addition to the foregoing salary, the City will make, in equal proportionate amounts each pay period, an annual contribution of $5,000 into an

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Attachment: City Manager Third Amended Agreement_Final_09052023 (Resolution Amending the Agreement for City Manager Services)

Page 2 of 4 ends

September 2023
account for the City Manager in the City approved Section 457 Deferred Compensation Plan. Such contribution is in addition to t he City contribution made on behalf of all management employees;
d. The City Manager shall also be entitled to a monthly allowance of $40 to be used for a cellular phone service;
e. The City Manager shall also be entitled to such benefits as approved by Resolution of the City Council.

3. Each year, t he City Manager shall work with the City Council to s chedule an evaluation of the City Manager’s performance annually to coincide with the fiscal year. The City Council may also schedule performance evaluations at such other times as the City Council deems necessary and appropriate. Notwithstanding this provision, failure of the City Council to conduct an evaluation to coincide with the fiscal year shall not be deemed to be a breach of this Third Amended Agreement by the City.

4. This Third Amended Agreement shall remain in effect from year to year until terminated.

5. Notwithstanding sec tion 4 of this Third Amended Agreement, because an intimate and confidential relationship is necessary between the City Manager and the City, the City Manager understands and agrees that City Manager serves at the pleasure of City, and m ay be terminated at the will of C ity at any time and without prior notice, and without sta tement of rea sons or gro unds therefor.

However, the City Manager shall not be removed during the sixty (60) day period following any change in membership of the City Council except upon a vote of at least four/fifths of the City Council.

6. In the event that the City Manager voluntarily chooses to resign his employment, he shall give the City Council at least thirty (30) day s’ advance written notice of his decision, so that the City Council may undertake a reasonable effort to find a successor.

7. Notwithstanding anything conta ined in pa ragraph 5 of this Third Amended Agreement, in the event that the City Manager is terminated by the City while the City Manager is willing and able to perform hi s duties under this Third Amended Agreement, th en the City Manager shall be entitled to continue to rece ive the salary set forth in paragraph 2a of this Third Amended Agreement, for a period of six (6) months following his termination, provided that:
a. The City Manager shall make him self reasonably available to the City during said six (6) month period to consult on City business; and b. The City Manager’s termination is not due to an act of moral turpitude, a fraud against the City, a conviction of any illegal act involving personal gain to him, or any other act or omission on the par t of the City Ma nager who lly inconsistent with his position or responsibilities.

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Attachment: City Manager Third Amended Agreement_Final_09052023 (Resolution Amending the Agreement for City Manager Services)

Page 3 of 4 ends

September 2023
Nothing contained in this sec tion shall apply in the eve nt of a voluntary resignation of the City Manager. Additionally, the compensation affo rded under this section shall be the exclusive an d sole remedy of the City Manager for any termination of his employment. This section provides for a full and final release of all k nown and unknown and unanticipated claims, injuries, damages, losses, demands, costs, liabilities, actions and c auses of action that the City Manager may have against the City, now or in the future, arising out of his termination; and the City Manager waives all rights or benefits that the City Manager now has or in the future may ha ve under the terms of Section 154 2 of the Civil C ode of th e State of California, which section reads as follows:

A GENERAL RELEASE DOES NOT EXT END TO CLAIMS THAT

THE CRE DITOR OR RELEASING PARTY DOES NOT KNOW

OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE T IME

OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM

OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

8. The City’s w aiver of any term , condition , or covenant, or breach of any term, condition, or covenant shall not be construed as the waiver of any term, condition, or c ovenant or waiver of the breach of any other term, condi tion, or covenant.

9. This Third Amended Agreement contains the e ntire agreement between the City and the City Manager relating to the matters contained herein. Any prior agreements, promises, negotiations, or representations not expressly set forth in this Third A mended Agreement are of no f orce or effect. Subsequent modifications to this Third Amended Agreement shall be in writing and signed by both the City and the City Manager.

10. If any term, condition, or covenant of this Third Amended Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Third Amended Agreement shall be valid and binding on the City and the City Manager.

11. This Third Amended Agreement shall be governed and co nstrued in accordance with the laws of the State of California.

12. This Third Am ended Agreement may be executed in counterpa rts and will be binding as so executed on the date last executed.

The undersigned parties having read and understood the foregoing terms and conditions of this Third Amended Agreement hereby agree to be bound thereby.

EMPLOYER

CITY OF CAMPBELL
Dated:_____________________ ____________________________

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Attachment: City Manager Third Amended Agreement_Final_09052023 (Resolution Amending the Agreement for City Manager Services)

Page 4 of 4 ends

September 2023
Anne Bybee
Mayor

EMPLOYEE
Dated:_____________________ ____________________________ Brian Loventhal
City Manager

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Attachment: City Manager Third Amended Agreement_Final_09052023 (Resolution Amending the Agreement for City Manager Services) City
Council
Report
TITLE: Resolution Amending the City Clerk Services Agreement (Resolution/Roll Call Vote)

RECOMMENDED ACTION
That the City Council adopt a Resolution amending the A greement for City Clerk Services to provide for a merit increase; provide for full coverage of health insurance premiums for the City Clerk and her dependents; provide for a longer severance pay period; and provide for an annual performance evaluation in the month of June.

BACKGROUND
In August 2022, the City of Campbell (“City”) entered into an Agreement for City Clerk Services (“Agreement”) with Andrea Sanders (hereafter, “City Clerk”).

On July 31, 2023, the City Council concluded its annual performan ce evaluation of the City Clerk to deliberate on a merit increase, as well as the City Clerk’s health care premium coverage for her and her dependents, severance pay terms, and a shift in the City Clerk’s annual evaluation period.

Following their deliber ation, the City Council directed staff to return to the City Council with amendments to the Agreement for their consideration and approval, as more fully outlined below.

DISCUSSION
Following the City Clerk ’s recent annual performance evaluati on, the City Council directed staff to return to them with proposed amendments to the Agreement for their consideration and approval.

Payment - Merit Increase:

First, t he City Council specifically directed staff to return with proposed language amending the Agreement to reflect a merit increase within the City Clerk classification from Step 1 of Seventy -three Dollars and Twenty-five cents ($73.25) per hour to Step 2 of Seventy-six Dollars and Eighty -eight cents ($76.88) per hour. This adjustment would acknowledge the City Clerk’s strong work performance and unwavering commitment to her job as city clerk. It would also recognize her significant contributions to the City.

Item: 19
Category: NEW BUSINESS
Meeting Date: September 5, 2023
19 Packet Pg. 268
Resolution Amending the Agreement for City Clerk Services Page 2 of 3 Payment – Health Insurance:

The City Council also directed staff to return with proposed language amending the Agreement to provide for the City’s full coverage of the cost of the premium for any one of the medical insurance coverage plans provided in the City’s cafeteria plan and chosen by the City Clerk , for her and her dependents. The intention was to align the medical insurance coverage with what is offered to other Council -appointed positions such as the City Manager and the City Attorney. Th e amendment would also support principles of equity and retention. First, aligning coverag e with other Council -appointed positions would ensure consistency and avoid perceived disparities in benefits. Second, offering this upgraded coverage would be a strategic measure for talent retention, aligning with the City's commitment to a competitive c ompensation package that enhances job satisfaction and long-term commitment.

Termination - Severance Pay Terms:

In addition, the City Council directed staff to return with a proposed amendment to the severance pay clause included in the Agreement. Specifically, the City Council directed staff to return with language extending the duration of the severance pay clause from three months to six months. This adjustment is consistent with city c ouncil-appointed positions in other comparable agencies. It would also provide the City Clerk with security and a reasonable transition period in the event the Agreement is terminated; ultimately, offering a more stable and sustainable working relationship between the parties.

Evaluation
Lastly, the City Council dir ected staff to return with language amending the Agreement to shift the month for the City Clerk’s performance evaluation from August to June, aligning the evaluation period with both the City’s budgetary cycle and the evaluation timelines for other City Council-appointed positions. This adjustment would also support streamlining processes and ensure consistent evaluation periods across roles within the organization.

Attached to this memorandum are both a Resolution and a First Amended Agreement for City C lerk Services for the City Council’s review and approval that include : (1) a merit increase in Salary from Step 1 ($73.25) to Step 2 ($76.88) ; (2) a revised provision for full coverage of the Health Insurance Premium s for both the City Clerk and her dependents; (3) a lengthened severance pay period of 6 months ; and, (4) a annual performance evaluation in the month of June.

FISCAL IMPACT
The First Amended Agreement for City Clerk Services is fully funded within the Fiscal Year 2024 adopted budget at an amo unt for the merit increase and benefit changes, 19 Packet Pg. 269
Resolution Amending the Agreement for City Clerk Services Page 3 of 3 consistent with the City’s long range budget model.

At this time, staff is not requesting a budget adjustment for FY 2024 as the proposed salary rate of the City Clerk is very close to the projected salary rate for FY 2024.

However, staff will continue to evaluate all expenditures for FY 2024 and propose budget adjustments during the mid-year update in February 2024, if necessary.

ALTERNATIVES

1. Do not adopt the attached resolution.

2. Provide direction on different changes to the Agreement.

Prepared by:

Angelique Gaeta, Assistant City
M
anager
Attachment:
a. Resolution to Amend Agreement for City Clerk Services b. Agreement City Clerk Services
19 Packet Pg. 270
RESOLUTION NO. _______________

A RESOLU TION OF THE CITY COUN CIL OF THE CITY OF CAMPBELL

APPROVING AMENDMENTS TO THE AGREEMENT FOR CITY CLERK SERVICES TO: PROVIDE FOR A MERIT INCREASE; PROVIDE FULL COVERAGE OF HEALTH INSURANCE PRE MIUMS FOR THE CITY CLERK AND HER DEPENDENTS; PROVIDE FOR A LONGER SEVERANCE PAY PERIOD; AND , PROVIDE FOR AN ANNUAL PERFORMANCE EVALUATION IN THE MONTH OF JUNE.

WHEREAS, the City Council entered into a City Clerk Employment Agreement (Agreement) with Andrea Sanders (City Clerk), effective August 2, 2022; and WHEREAS, Section 2.1 6.020 of the Campbell Municipal Code provides that compensation for all appointed of ficers and em ployees of the City shall be fixed by Resolution; and
WHEREAS, it is necessary for the City Council to review and duly approve and adopt in accordance with requirements of applicable public meeting s laws a publ icly availa ble salary schedule; and
WHEREAS, on July 31, 2023, the City Council concluded its annual perfo rmance evaluation of the City Clerk and endorsed her commendable performance; and WHEREAS, thereafter, the City Council directed staff to return to the City Council with amendments to the Agreement for their consideration and approval; and WHEREAS, the City Council specifically directed staff to return with language amending the Agreement to: include a merit increase in the salary for the City C lerk from Step 1 ($73.25) per hour to Step 2 ($76.88) per hour based on her strong performance as City Clerk; provide for the City’s full coverage of Health Insurance Premiums for the health plan chosen by the City Clerk for her and her dependents; lengthen the severance pay period from 3 months to 6 months; and shift the evaluation month during which the City Clerk has her annual performance evaluation from August to June; NOW THEREFORE BE IT RESOLVED that the City Council hereby approves amendments to the Agreement for City Clerk Services to: (1) adjust the salary of the City Clerk to $76.88 per hour to reflect Step 2 of the City Clerk Classification adopted salary table; (2) provide for the full payment of the premium charged for any health plan selected by the City Clerk for her and her dependents; (3) lengthen the severance pay period to 6 months ; and (4) change the month during which the City Clerk has her annual performance evaluation from August to June.

PASSED AND ADOPTED this day of 2023, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

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Attachment: Resolution to Amend Agreement for City Clerk Services (Resolution Amending the Agreement for City Clerk Services) _____________________
Anne Bybee, Mayor
ATTEST:
__________________________
Andrea Sanders, City Clerk

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Attachment: Resolution to Amend Agreement for City Clerk Services (Resolution Amending the Agreement for City Clerk Services)

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August 2023

CITY OF CAMPBELL

FIRST AMENDED AGREEMENT FOR CITY CLERK SERVICES
Th
is First Amended Agreement for City Clerk Services (“First Amended Agreement”) is between the City of Campbell (“City”), a municipal corporation and general law city, and Andrea Sanders (hereafter, collectively referred to as “Parties”), and is effective upon execution.

WH
EREAS, Campbell voters approved the conversion of the City Clerk position from an elected position to an appointed position at the November 2, 2012 General Municipal Election; and
WH
EREAS, on July 1, 2022, the City Council appointed Andrea Sanders, then Deputy City Clerk, as Acting Interim City Clerk, pursuant to Government Code Section 36510; and
WHE
REAS, on August 2, 2022, the City Council appointed Andrea Sanders as the City Clerk, pursuant to Government Code Section 36510, at a rate of pay of $65.16 per hour; and
WH
EREAS, City desires to continue to employ Andrea Sanders (hereafter, “City Clerk”) as its City Clerk and Andrea Sanders desires to continue to be employed by the City as its appointed City Clerk; and
WHE
REAS, City desires to provide City Clerk with certain benefits, establish certain conditions of employment, and set working conditions for City Clerk.

NO
W THEREFORE, for and in consideration of each other’s mutual promises, the undersigned Parties agree as follows:

1. DUTIES: City Clerk agrees to perform the function and duties of the City Clerk as set forth in applicable State or local laws, ordinances, resolutions, and policies, including the duties as outlined in the attached Job Description.

2. PAYMENT: During the term of her employment, City agrees to pay City Clerk for services rendered, pursuant to this First Amended Agreement, an annual base salary within the range adopted by the City Council for the position of City Clerk.

The compensation for City Clerk as of the 7th day of August, 2023, is Seventy-Six Dollars and Eighty-Eight Cents ($76.88) per hour, which amount may be adjusted from time to time. The compensation shall be payable in bi-weekly installments at the same time as other employees of City are paid.

Compensation will be evaluated at least annually. This evaluation will include consideration of the salary range for the position of City Clerk; annual increases afforded classified management employees; the City's willingness/ability to grant

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August 2023
increases, as well as merit increases; "across-the-board" increases; and such one-time payments and/or bonuses available or provided to management employees. Salary adjustments can be made by City Council Resolution. City Clerk shall be entitled to receive holidays, sick leave, disability, retirement, life and other insurance, and other benefits and compensation, including car allowance and City contributions toward deferred compensation plan, as provided to other City classified management employees. For health insurance benefits, the City shall pay the full premium towards any health plan the City Clerk elects for her and her dependents.

3. CONTINUING EDUCATION: During the term of this employment contract, continuing education shall be maintained toward achieving Master Municipal Clerk Designation, and such other continuing education as is annually approved by the City Council.

4. EVALUATION: The City Council shall review and evaluate City Clerk annually during the month of June. As part of the review process, a subcommittee of the City Council may conduct a review and make recommendations to the City Council. City Clerk may also be reviewed and evaluated at any other times the City Council deems necessary and appropriate.

5. TERM: This First Amended Agreement shall remain in effect from year to year until terminated.

6. TERMINATION: Because an intimate and confidential relationship is necessary between City Clerk and City, City Clerk understands and agrees that City Clerk serves at the pleasure of City, and may be terminated at the will of the City Council at any time and without prior notice, and without statement of reasons or grounds therefore. City may terminate this First Amended Agreement at any time, provided City continues to pay City Clerk's salary and benefits for a period of six (6) months from the date City Clerk vacates the position of City Clerk. City Clerk shall not be removed during the sixty (60) day period following any change in membership of the City Council except upon a vote of at least four/fifths of the City Council.

7. RESIGNATION: In the event City Clerk voluntarily chooses to resign her employment, City Clerk shall give City at least thirty (30) days’ written notice so City may undertake a reasonable effort to find a successor.

8. BONDS: City shall bear the full cost of any fidelity or other bonds required of City Clerk under any law or ordinance.

9. NON-WAIVER: City's waiver of any term, condition or covenant, or breach of any term, condition or covenant shall not be construed as the waiver of any term,

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condition or covenant or waiver of the breach of any other term, condition, or covenant.

10. ENTIRE AGREEMENT: This First Amended Agreement contains the entire agreement between City and City Clerk relating to the matters contained herein.

Any prior agreements, promises, negotiations, or representations not expressly set forth in this First Amended Agreement are of no force or effect. Subsequent modifications to this First Amended Agreement shall be in writing and signed by both City and City Clerk.

11. SEVERABILITY: If any term, condition, or covenant of this First Amended Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this First Amended Agreement shall be valid and binding on City and City Clerk.

12. GOVERNING LAW: This First Amended Agreement shall be governed and construed in accordance with the laws of the State of California.

13. EXECUTION: This First Amended Agreement may be executed in counterparts and will be binding as so executed.

The undersigned Parties having read and understood the foregoing terms and conditions of this First Amended Agreement hereby agree to be bound thereby.

Dated: __________________ ___________________________ Andrea Sanders, City Clerk

City of Campbell:

Dated: __________________ by_________________________ Anne Bybee, Mayor

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Attachment: Agreement City Clerk Services (Resolution Amending the Agreement for City Clerk Services)

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Attachment: Agreement City Clerk Services (Resolution Amending the Agreement for City Clerk Services) City
Council
Report
TITLE: Designation of Voting Delegate and Alternate for 2023 League of California Cities Annual Conference

RECOMMENDED ACTION
That the City Council designate a Voting Delegate and Alternate(s) for the League of California Cities Annual Conference General Business Meeting to be held on September 20-22, 2023.

BACKGROUND
The League of California Cities Annual Conference is scheduled for September 20 -22, 2023, in Sacramento. The General Business Meeting is scheduled for Friday, September 22, 2023, at the Sacramento SAFE Credit Union Convention Center.

Consistent with Cal Cities bylaws, each City Council is required to designate a voting representative and up to two alternates who will be present at the General Business Meeting, one of whom may vote in the event the designated voting delegate is unable to serve in that capacity.

FISCAL IMPACT
Appointing a voting representative and two alternates has no fiscal impact. However, the City is assessed an annual fee for its membership in the League of California Cities (approx. $17,000) and there are also costs associated with attending the Annual Conference (approx. $600 per attendee plus travel expenses). Both of these costs have been accounted for within the Fiscal Year 2024 Adopted Budget under the City Council Budget Unit (101.501) and no further appropriations are requested at this time.

Prepared by:

Andrea Sanders, City Clerk
Item: 20
Category: NEW BUSINESS
Meeting Date: September 5, 2023
20 Packet Pg. 278

2023 Cal Cities Voting Delegates Page 2 of 2
Attachment:
a. Annual Conference Voting Procedures
20 Packet Pg. 279
1400 K Street, Suite 400, Sacramento, CA 95814 • 916.658.8200 • calcities.org General Assembly Voting Guidelines

1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to Cal Cities policy.

2. Designatin
g a City Voting Representative. Prior to the Cal Cities Annual Conference and Expo, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the voting delegate form provided to the Cal Cities Credentials Committee.

3. Registerin
g with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the voting delegate desk in the conference registration area. Voting delegates and alternates must sign in at the voting delegate desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the General Assembly.

4. Signing In
itiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the credentials committee at the voting delegate desk, may sign petitions to initiate a resolution.

5. Voting.

To cast the city's vote, a city official must have in their possession the city's voting card and voting tool; and be registered with the credentials committee. The voting card may be transferred freely between the voting delegate and alternates but may not be transferred to another city official who is neither a voting delegate nor alternate.

6. Voting Are
a at General Assembly. At the General Assembly, individuals with a voting card will sit in a designated area. Admission to the voting area will be limited to the individual in possession of the voting card and with a special sticker on their name badge identifying them as a voting delegate.

7. Resolving Disp
utes. In case of dispute, the credentials committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the General Assembly.

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Attachment: Annual Conference Voting Procedures (2023 Cal Cities Voting Delegates) Sixty days before the
Annual Conference and
Expo, Cal Cities members
may submit policy
proposals on issues of
importance to cities. The
resolution must have the concurrence
of at least five additional member cities
or individual members.

How it works: Cal Cities
Resolutions and the General Assembly
General Assembly
General Resolutions
Policy Committees
Developing League of California Cities policy is a dynamic process that engages a wide range of members to ensure that we are representing California cities with one voice. These policies directly guide Cal Cities advocacy to promote local decision-making, and lobby against statewide policy that erodes local control.

The resolutions process and General Assembly is one way that city officials can directly participate in the development of Cal Cities policy. If a resolution is approved at the General Assembly, it becomes official Cal Cities policy. Here’s how Resolutions and the General Assembly works.

The petitioned resolution
is an alternate method
to introduce policy
proposals during the
annual conference. The
petition must be signed by
voting delegates from 10% of member
cities, and submitted to the Cal Cities
President at least 24 hours before the
beginning of the General Assembly.

Petitioned Resolutions
The Cal Cities President
assigns general resolutions
to policy committees where
members review, debate,
and recommend positions for
each policy proposal. Recommendations are
forwarded to the Resolutions Committee.

Who’s who
The Resolutions
Committee includes
representatives from
each Cal Cities diversity
caucus, regional
division, municipal
department, policy
committee, as well as
individuals appointed by
the Cal Cities president.

Voting delegates
are appointed by each
member city; every city
has one voting delegate.

The General Assembly
is a meeting of the
collective body of
all voting delegates —
one from every
member city.

Seven Policy
Committees meet
throughout the year to
review and recommend
positions to take on
bills and regulatory
proposals. Policy
committees include
members from each Cal
Cities diversity caucus,
regional division,
municipal department,
as well as individuals
appointed by the Cal
Cities president.

During the General Assembly, voting delegates
debate and consider general and petitioned
resolutions forwarded by the Resolutions Committee.

Potential Cal Cities bylaws amendments are also
considered at this meeting.

Cal Cities policy
development is a
member-informed
process, grounded
in the voices and
experiences of city
officials throughout
the state.

For more information visit www.calcities.org/general-assembly Prior to the Annual Conference and Expo
Resolutions Committee
The Resolutions Committee
considers all resolutions.

General Resolutions approved
1 by either a policy committee
or the Resolutions Committee
are next considered by the General
Assembly. General resolutions not approved,
or referred for further study by both a policy
committee and the Resolutions Committee
do not go the General Assembly. All
Petitioned Resolutions are considered by the
General Assembly, unless disqualified.
2 • Voting delegates will receive increased communications to prepare them for their role during the General Assembly.
• The General Assembly will take place earlier to allow more time for debate and discussion.
• Improvements to the General Assembly process will make it easier for voting delegates to discuss and debate resolutions.

What’s new in 2023?
During the Annual Conference and Expo
1 The Resolution Committee can amend a general resolution prior to sending it to the General Assembly. 2 Petitioned Resolutions may be disqualified by the Resolutions Committee according to Cal Cities Bylaws Article VI. Sec. 5(f).

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Attachment: Annual Conference Voting Procedures (2023 Cal Cities Voting Delegates) City
Council
Report
TITLE: Economic Development Strategy Plan Update

RECOMMENDED ACTION
That the City Council receive and accept the report for the Economic Development Strategy Plan Update.

This report provides an update on the economic development strategy process that began in the City of Campbell (City) in April 2023. This report focuses on the Phase I existing conditions and was previously presented and discussed at the J uly 27 , 2023 joint meeting of the City Council Economic Development Subcommittee and Economic Development Advisory Committee.

Members of the consulting team developing the strategy will be present via Zoom at the City Council meeting on September 5.

BACKGROUND
At the June 7, 2022 City Council meeting, the City Council approved a Request for Proposals (RFP) that would combine a short -term economic development strategy focused on addressing commercial vacancies in the City along with a comprehensive update to the City's Economic Development Plan. The City Manager was authorized to execute a contract with a consultant in an amount not to exceed $200,000. Chabin Concepts, located in Chico, California ( https://www.chabinconcepts.com/) was selected to develop the City’s Economic Development Strategy.

The City’s RFP had two priority concerns that needed to be addressed in the short-term strategy:
1) Vacancy rates, particularly in office and retail space in the City, and 2) An analysis of sales tax revenue to identify challenges for businesses that generate sales tax and potentially fill vacant space in the City. This effort also included a detailed assessment of available space and properties to determine vacancy r ates more accurately and identify leasing, market challenges and opportunities.

Item: 21
Category: UNFINISHED BUSINESS
Meeting Date: September 5, 2023
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The RFP also required an update of the City’s 2017 Economic Development Strategy to address longer-term economic issues and a branding/marketing assessment and plan to promote the City.

The first phase of the strategy process was to identify “existing conditions” in the local economy and City’s business environment that serve as a basis for the strategy recommendations. This effort began with a meeting of the Economic Development Advisory Committee (Committee) whose role was to provide input and comment to the consulting team during the strategy process. The Committee members represent Campbell businesses, developers, brokers, and stakeholder groups. Two economic development staff from the cities of Mountain View and San Mateo are also members of the Committee to provide a “peer review” perspective that helps validate the post - pandemic economic challenges cities face.1
Extensive community outreach was conducted by the consulti ng team that included focus groups and interviews with a diverse range of businesses, the real estate sector, stakeholder groups such as the Chamber of Commerce and Downtown Campbell Business Association, City Council members, and City staff. Interviews w ere also held with selected individuals outside the City in order to gain their perceptions of the City. 2 On-line surveys of residents and businesses provided additional opinions and perceptions about the City as a place to live and do business. The consulting team also reviewed relevant City plans, studies and reports that included the updated General Plan, Housing Element, and the 2017 Economic Development Strategy.

DISCUSSION
The review of existing conditions was organized into the categories liste d below. A “working paper” was prepared for each category which details the existing conditions.

The papers will be addendums to the final strategy and are attached to this staff report.

Below is a summary of each working paper.

1. Economic Scan (overview of City economic and demographic indicators and data points)
The economy of most cities consists of three key business drivers or sectors that create economic activity.3
1 A list of the members of the Advisory Committee can be found in Attachment A of this report. 2 A list of persons interviewed or who participated in the focus groups will be included in the final strategy report. 3 There are communities, such as Hillsborough, Los Altos Hills, and Portola Valley, that do not have the presence of three business sectors. These cities rely on property tax and other special taxes for their general fund revenue. 21 Packet Pg. 283
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• The traded sector market comprised of businesses that provide goods and services to customers outside the region and is the strongest source of the City’s revenue;

• The population -driven market comprised of businesses that provide goods and services to residents. This sector circulates the same dollars (earned and spent) but is still very important to the local economy;

• The visitor-serving market consisting of venues and businesses that attract or serve visitors, e.g., hotels, destination attractions and shopping opportunities.

• The City ’s three economic sectors have recovered from th e pandemic disruption in jobs and gross regional product (GRP). However , the visitor sector is still behind primarily due the slow return of business travel (a regional and national trend).

• The City’s population is aging (a national and global trend) but there is also growth in the age group still in the workforce. The median age of Campbell residents is 39.1 compared to San Jose (38.4); Los Gatos (46.7) and Cupertino (41.0). The latter two cities have an older median age which is indicative of the higher unaffordability of housing for younger buyers.

• Unemployment in the City has remained below or at three percent.

Throughout areas of the U.S, many service businesses cannot find enough workers.

• The workforce is very mobile: 20,000 plus commute daily ou t of the City for work and 18,000 plus commute into the City for work.

• The median household income in the City in 2021 was $130,171 compared to $126,377 for San Jose, $166,642 for Los Gatos and $199,778 for Cupertino.

• Wages as a source of income (88.0%) are higher than San Jose and Los Gatos but slightly lower than Cupertino (88.9%) and is indicative of a high number of wage earners.

Employers and Businesses

• Most of the City’s business are small; 95% of businesses have fewer than 20 employees and 60% have fewer than five employees.

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• Thirty eight percent (38%) of businesses have operated in the City six to 19 years; 32% have operated in the City 20 years or more indicative of the stability of the City’s businesses.
• The City ’s major sales tax groups for t he most part have recovered to pre - pandemic levels, but a slower economy is expected in 2023. • The City’s location is very accessible to the Silicon Valley market and draws customers for both retail and businesses.

2. Market Conditions
The City offers a st rong business environment and is a desirable location for businesses because of its proximity to Silicon Valley and access to major freeways.

There is demand from retailers and business owners to locate in the City , as evidenced by low vacancy for industrial and retail space. • Nationally and in the Bay Area, there has been a resurgence in leasing activity that has been driven partly by strong demand for smaller spaces as the average footprint leased fell to a new historic low during the year to just over 3,000 square feet.
• National store closings hit an all-time low in 2021 and there are more openings than closings across the country in 2022.
• City retailers like Kohl’s and Marshalls are high performing stores in the portfolio of stores for each company.
• Seventy (70%) percent of the people who visited Downtown Campbell in 2022, were from within a five-mile radius of the Downtown. • Retail centers with anchor stores are the strongest performing. • Businesses that were the most active in opening stores for the la st three years include service, fitness, entertainment and experiential venues and restaurants.4
• New businesses that want to open in the City face challenges: with a limited amount of retail/industrial/or Flex-R & D space available, it is difficult to fin d a site that meets the physical location requirements of new or existing business. • Stakeholder comments both from brokers and businesses indicate the zoning/permitting process is challenging to maneuver, costly and time consuming.
• Constructions costs in the City, as throughout the Bay Area, are very high.

3. Real Estate Vacancy (commercial, office and industrial) 4 Experiential retail or commerce Experiential retail or experiential commerce is a type of retail marketing whereby customers coming into a physical retail space are offered experiences beyond the traditional ones. Amenities provided may include art, live music, virtual reality, cafés and lounges, and large video display walls. 21 Packet Pg. 285
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The pandemic and online sales have had profound impact on real estate markets throughout the country especially for office space. Published vac ancy rates accounts for space that is listed with real estate brokerage firms which includes higher profile retail (such as Hamilton Plaza and the Pruneyard) or “stand -alone” buildings (former Fry’s or Bed, Bath and Beyond). To identify a more comprehensive vacancy rate for office, industrial and retail space in the City, the consulting team conducted a detailed inventory of all available space in the three real estate categories.

The retail vacancy rate shown below is considered a “healthy” or acceptab le rate tends to be a much higher vacancy rate for small, older strip centers that have do not have anchor brand stores to draw shoppers. Vacant space in these centers is not usually represented by brokers and the spaces are not included in real estate databases but were included in the consultants’ vacancy rates analysis.

As of June 2023, the vacancy rates in the City were:

Many cities across the country are currently experiencing office vacancy rates in the mid to high twenty percent. Reducing the high office vacancy rate in cities will be more challenging because remote work is expected to continue as a workplace option. Real estate market experts do not expect the office vacancy rate to decline for at least three years. Converting office towers to residential is very expensive and for many buildings not structurally possible.

The City has a competitive location advantage in the Silicon Valley market that draws customers for both retail and industry. According to an industrial broker, the industrial areas in the City are the only concentrations of that type of space (smaller flex space with lower rent) in the West Valley area of Silicon Valley. For many business owners, executives, employees and customers, the City offers a reverse - commute with convenient access to major freeways and light rail transit.

4. Sales Tax Review

For most cities, sales/use tax is the primary source of revenue for general funds.

The chart below is a list of the top 25 sales tax producers in the City. The composition and order of this list changes frequently depending on the economy, changes in business operations, their space needs, rent and other costs of doing Retail 4 to 5%
Office 30%
Industrial 7 to 8%
Flex R & D 3%

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business. These are some of the factors that affect business locations and city sales tax revenue.

• The total of retail sales tax and business sales tax revenue is the second largest revenue producing category, after property tax, according to the City’s 2022 budget.

• Retail sales tax (storefronts) contributes 55% of all the sales /use tax generated for the City.

• Business and industry (Dell and McGlincy areas) sales tax increased 34% (2019-2022); however, this category has declined 33% from first quarter 2022 to first quarter 2023 reflecting an expected a softening in the economy after 2022.

• The Top 25 Sales Tax Producers represent 48% of all sales tax revenue and include a variety of businesses . The City of Campbell, like many smaller cities, lacks auto dealers and large format retailers like Costco, Target and 21 Packet Pg. 287
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Walmart which usually generate strong sal es tax revenues and help diversify a city’s portfolio of revenue sources.

5. Economic Centers – The consulting team created a “story map” which is a web - based tool that provides a visual depiction of key areas of the City that create economic impact. Below are links to the story maps that will be available on the City’s Economic Development website.

Economic Centers
Downtown Campbell
The charts and maps in the story map show the City’s primary economic centers that generate the greatest amount of economic activity in the City. The chart below lists the centers in rank order that generate the most sales tax revenue for the City.

The Dell Avenue industrial area is the largest tax generating center.

6. Social Media Presence
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As part of the update to the City’s 2017 E conomic Development Strategy, the City requested a marketing strategy. T he consulting team reviewed the City’s marketing efforts and channels to fully understand the current social media presence effort with residents, businesses, visitors, and real estate brokers/developers. The team also reviewed other stakeholder organizat ions and private business social media that market the City . The detailed review was conducted of each social channel that prominently mentions the City including a profile of their followers, likes, and overall messaging and some examples of content plac ed on those platforms. This review helps the consulting team evaluate opportunities to enhance social media presence, followers, and messaging to target audiences and prepare the marketing strategy. (See “Social Media Working Paper”.)

Key observations from the social media review include:

• The accounts with the most significant follower counts are the Downtown Campbell Business Association Facebook and Instagram, with 14K followers on Facebook and 10.4K followers on Instagram.
• From the City’s accounts two types of posts receive significant followers and views - the City’s water tower and Los Gatos Trail. There seems to be a high - level of community pride surrounding both.
• Strategically planning a posting schedule could help many of these accounts as they po st sporadically, sometimes three times a day. Posting multiple times a day can lead to people tuning out the posts since they see so many from the same account.
• Searches for “Things to Do” in Campbell on various sites brought up things to do near or outsid e of the City, an indicator for Search Engine Optimization review and updating.
• The social channels being used by the City are well designed; deeper review is needed to understand if there is capacity to optimize for increased engagement.
• Instagram has more followers and better engagement than Facebook. • Both are relevant platforms and are being actively used. The audience following is smaller than expected given the relevance of the platforms. • YouTube which typically has high engagement is primarily being used to showcase council meetings.

7. Website Review

Websites are major channels for businesses and residence to access city information. The website review conducted for the existing conditions scan entailed a content review, technical review, and usage including:

• Content/Structure
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• Design/Usability
• Miscellaneous Observations
• Performance • Mobile Experience
• Search Engine Optimization (SEO)
• ADA Compliance
• Analytics

The City’s website was reviewed with three perspectives in mind:

1. From a user

2. From a site functionality (content and structure)

3. From a marketing perspective

The review working paper contains numerous screen shots that help to assess the website as it relates to economic development and the City’s brand story.

Numerous inconsistencies and errors that affect functionality and make the search more difficult for the user to find information are noted in the review. Many of the findings have already been used by staff to make changes and corrections to the City’s website. (Please refer to th e “Website Working Paper” for more details regarding the website review.)

8. Perceptions— A summary of resident and business survey responses

Three stakeholder groups —businesses, residents, and real estate brokers —were surveyed to provide perspectives and opinions during Phase I. It is important from a marketing and economic development strategy standpoint to understand the perspectives of these groups as they help define the current perceptions of the City and shape the marketing and branding architecture and build the City’s brand story and the marketing plan. Feedback from these groups was obtained using meetings, interviews and two on -line surveys—one for residents and one for businesses that were posted on City’s website and promoted by Chamber of Comm erce and the Downtown Campbell Business Association. (A compilation of responses to both surveys are attached to this report.)

Resident Survey

Four hundred thirty -four responses were received for the resident survey. The residents are an important part of the City's vibrancy and community spirit and its appeal as a place to live and work. Survey responses of residents can reveal resident concerns, areas for improvement, highlight the City's unique attributes and contribute to a strong sense of community loyalty and support that are part of the City’s story. Highlights of the residents’ responses include:

• 60% of respondents have lived in the City for 16 years or more. 21 Packet Pg. 290
Economic Development Strategy Plan Update Page 10 of 14 • 75% of respondents who are 18 or older are employed.
• 48% of those who work from home ar e “hybrid” workers (work some of the time in an office)
• 23% work for businesses located in the City; the rest commute to jobs outside the City.
• 58% responded that the City needs more affordable housing. • Over 50 percent responded they visited Downtown Campbell one or more times per week; only 4.3% said they almost never visited Downtown. • The most popular Downtown Campbell attractions are dining, the Farmers’ Market, festivals and events, and shopping and walking in the downtown. • When shopping (excluding groceries), 48.2% of respondents shop online. • 56% of respondents indicated grocery stores in the City as their preferred choice.
• 87% of respondents were satisfied with the public education system. • 87% of respondents ranked the City 4 to 5 (with 5 being the best). • Respondents provided positive feedback on the following areas in the open- ended questions:
o Small town feel
o Convenient location
o Community-oriented
o Safe community
o Responsive City services
o Downtown
o Local events
o Parks and trails

Business Survey

Learning about the perceptions, challenges, and aspirations of businesses and how they feel about the City as a place to do business, helps target marketing and create strategies for retaining and attracting businesses. Eighty -eight responses were received for the business survey. (The City is developing a comprehensive business contact list through the business license application process to facilitate better communication with local businesses.) In addition, many interviews and several focus group meetings w ere held with businesses to solicit their opinions and perspectives. Highlights of the business survey responses are listed below.

• Most businesses are small; 80% have less than 10 employees and 60% have less than five.
• 71.6% of employees working at these businesses lived outside of the City. • 38% have operated in the City for 6 to 19 years; 32% have operated for 20 years or more.
• 52% of the businesses collect sales tax.
21 Packet Pg. 291
Economic Development Strategy Plan Update Page 11 of 14 • 45% of total sales for the businesses are made through online channels. • 61% of businesses anticipate growth over the next two to three years. • 39% of businesses either have uncertain growth prospects or do not expect any growth soon.
• When businesses were asked how they would connect with the City if they have a problem involving the City, 38 .6% mentioned the City website; 42.9% indicated they would use email, contact planning, the city manager or visit City Hall.
• If business assistance is needed 44.3% stated they would rely on personal contacts; 26.1% were uncertain about where to seek assistance. • Other options mentioned for assistance: Chamber of Commerce, Downtown Campbell Business Associations, accountants, SBDC and the City. • 36.2% indicated the top requested services from the City were related to assistance with permits and regulatory issues.

Real Estate Brokers

Real estate brokers are active participants and key influencers in the real estate sector and a city’s business environment. They understand the region as a whole and the City’s position as a subset of that market. They also of fer valuable insights and information into the market dynamics, investment, development opportunities and perceived and real business location challenges in the City. Their perspectives can help target the City’s marketing efforts to attract investors, de velopers, and businesses that might locate in the City.

To effectively position the City as a desirable location for expanding existing and new businesses, it is important for the City to address any location challenges (within its purview) that prevent businesses from locating or expanding in the City.

During interviews and meetings, real estate brokers and property managers agreed that the City is a very desirable market location for businesses due to its proximity to Silicon Valley, accessible transportation routes, amenities like the Downtown, and its attractive small-town atmosphere. They all stated the City’s zoning and use permit process is confusing and increases time and costs for businesses that results in many businesses choosing locations in other cities. The business survey also noted the need for assistance with permitting and regulatory issues.

9. Assets, Challenges and Opportunities

The review of existing conditions produced key themes regarding the City’s assets, challenges and opportuni ties that represents a SWOT (strengths, weaknesses, opportunities, and threats) analysis for the economic development strategies. They are:

21 Packet Pg. 292
Economic Development Strategy Plan Update Page 12 of 14 Assets

Many of the assets identified below align with the City’s General Plan Vision and Economic Development Goal s. The latter serve as guiding principles that validate the actions and strategies of the economic development strategic plan.

1. Small town feel.

2. Good place to raise a family.

3. Sense of safety.

4. Location – proximity to Silicon Valley.

5. One of the few cities with a concentration of lower cost flex space for established and emerging service and production businesses.

6. Active Downtown with restaurants and retail.

Challenges

1. Zoning and permitting complexities (particularly as they relate to time and cost for businesses).

2. Capacity and resources of City and partner organizations are limited (noted in interviews conducted for the existing conditions review).

3. Very limited vacant land to accommodate large format retail and campus style development.

Opportunities

1. Shorten time delays for zoning and permitting.

2. Market, promote and position the City as competitive location for businesses.

3. Focus on growing and retaining existing businesses.

Economic Development Sub committee / Economic Development Advisory Committee Review

At the July 27 meeting of the Economic Development A dvisory Committee and the Economic Development Subcommittee, participants reviewed the “assets, challenges and opportunities”. Using dots, they voted for those they felt were the most important or were priorities. Participants were allowed to place one or all the dots on a single asset, challenge, or opportunity. The group prioritized the following ar eas (they received the most dots):

1. The complexity of permitting and zoning (an asset and challenge).

2. Focus on existing businesses that have growth potential ( asset and opportunity).

3. Leverage small set of tech companies that appear to incubate in Campbell. 21 Packet Pg. 293
Economic Development Strategy Plan Update Page 13 of 14

4. Position and promote the City’s number one asset within the region – a quality community with a small town feel (asset and opportunity).

5. Leverage DCBA and Chamber partnerships.

6. Adequate affordable housing (asset and opportunity).

These areas also received up to two dots:

Assets:
• Community-oriented quality of life and sense of place. • Good transportation access.
• Availability and access to hiking trails.

Challenges:
• Developable land capacity is constrained by physical buildout of community. • Increasing homelessness and perceived safety issues.
• Parking-related problems in all areas of the community. • Trash and recycling services.
• Keeping Downtown vibrant and refreshed.

Opportunities:
• Downtown strategy to continually refresh and support vibrancy. • Is property-based improvement district (for Downtown) feasible? • Work closely with brokers on retail vacant spaces and tenant mix. • Stem increasing business concerns about homelessness and safety; stronger police presence in all commercial and business/industry areas of the City. • Support local small business with financial and technical assistance. • Enhance communication with businesses.
• Invest in infrastructure improvements and beautification in economic centers.

Next Steps

Phase II of the economic development strategy will focus on the City’s “brand story” and how to incorporate it into a marketing plan that will support the opportunities listed above. A branding / marketing work session was conducted on August 28 th with the Economic Development Advisory Committee and the E conomic Development Subcommittee. The branding / marketing presentation with their feedback is scheduled to be presented at an upcoming City Council meeting.

Phase III will produce the final economic development strategy that builds on the City’s assets, brand story, and the challenges and opportunities identified in Phase I. The strategy will i nclude recommendations for stren gthening the long -term sustainability of the City’s three economic drivers and preparing f or shifts in the office, retail, and industrial markets vacancy. The final strategy report will also include ideas that can 21 Packet Pg. 294
Economic Development Strategy Plan Update Page 14 of 14 take the strategies and actions to the “next level” if resources and funding are available for implementation. The participants at the work session on July 27 concurred that it will be important for the City to prioritize the final strategies for implementation an d achieving success.

FISCAL IMPACT
Overall, the economic development strategy is expected to have a fiscal benefit to the City as it will develop strategies to support economic development and the fiscal health of the City. Any specific actions resultin g from the implementation of the economic development strategy and plan that has fiscal impacts will be included in the City’s final updated Economic Development Strategy.

Prepared by:

Leslie Parks, Economic Development Manager
Reviewed by:

Rob Eastwood, Community
Development Director
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Existing Conditions Working Papers
b. City of Campbell Business Resident Survey May-Jun 2023 21 Packet Pg. 295
TRANSMITT AL Economic Development Strategy Update
Phase I-Where are we now? Existing Conditions
The Economic Development Strategy approach
involves three-phases:

Phase I – Where are we now?
Phase II – Where do we want to be?
Phase III – How will we get there?
Phase I Working Papers

1. Working Paper – Economic Centers
A web-based tool for visual depiction of key
areas, (Economic Centers) creating economic
impact in Campbell in the form of jobs,
production and revenue to the City. This tool
will remain with the city after the project.

2. Working Papers – Real Estate (commercial,
office and industrial)
City of Campbell Vacancies
City of Campbell Real Estate Market
Conditions

3. Working Paper – Sales Tax Review

4. Working Papers – Marketing
City of Campbell Social Media Presence
City of Campbell Website
City of Campbell Perceptions

5. Working Paper – Economic Scan

6. Working Paper – Assets, Challenges &
Opportunities
These reviews, through an economic development
lens, are documented in Working Papers as
background and reference documents for city staff,
Advisory and Sub-committee information and further
discussion before moving forward. Objective is to
share what the consulting team is observing.

Phase I includes research, document and plan
reviews and listening to stakeholders.

Existing conditions set the baseline from which the
consulting team starts to create the strategic economic development plan.

Phase I, also referred to as
Existing Conditions, focuses
on what generates current
economic activity and the
business environment for
the three economic drivers:
• traded sector,
• population and
• visitor.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

WORKING PAPER
Phase I Existing Conditions
Economic Scan
City of Campbell
Economic Development Strategic Plan
June 30, 2023
Working Papers are prepared for city review of project tasks. Working papers include task findings, opportunities/challenges, possible implications of findings and potential actions that could be taken. Intent is to review with staff to ensure Team is on track and did not miss existing policies, work efforts and/or plans.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Summary Overview – Economic Scan
• The economic scan is a point in time look at Campbell’s economy, how the economic drivers are performing, and other socio-economic indicators. The objective is to further identify characteristics of the community and any trends or “red flag” areas of concern.
• For this scan, the starting point is 2019 (pre-pandemic) to 2022 (post-pandemic), as the pandemic disrupted every aspect of a community’s economy.
• The graphic highlights three economic/business drivers in a community – traded sector, population-driven and visitor--serving businesses which intersect and can overlap at different points. • The traded sector consists of those businesses that provide goods and services to customers outside of the region. They export goods and services and import dollars, i.e., through manufacturing, processing, technology. This sector creates highest economic impact. • The population-driven market (aka local serving) is made up of businesses that provide goods and services to residents, i.e., medical care, auto dealerships, groceries, restaurants and retail. This driver creates a medium economic impact. However, it typically represents the most businesses in a community, businesses that help define the character of the community and generates sales tax revenue to the city.
• The visitor-serving market consists of venues and businesses that attract or serve visitors to the community, i.e., hotels, destination attractions. The size and economic impact of this sector can be less for communities that are not considered a “visitor destination.”

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan • Using the three market drivers, the economic scan focuses on reviewing the Gross Regional Product (GRP), a monetary measure of the market value of all final goods and services produced in a community, along with related jobs associated with those economic market drivers:
• Recovery in both GRP and jobs has occurred in all three drivers (traded sector, population driven, visitor) exceeding 2019 levels, except in the visitor’s driver where jobs have recovered but not the GRP likely due to a lag in the travel industry return to pre-pandemic levels. • Some recovery trends are “sticking” at post-pandemic levels and should be watched, ref. page 7. • Campbell’s businesses are predominantly small – 95% have fewer than 20 employees and nearly 60% have fewer than five employees (Source: U.S. Census).
• Population in Campbell declined 0.6% annually between 2019-2022 but is projected to start growing in 2024. There was growth in the <19 age bracket and the 60-69 age bracket and a decline in the 20- 29 year-old age bracket.
• Campbell saw an overall increase in the workforce in Campbell which is consistent with national trends.
• According to the Census 2020 Inflow/Outflow Workers Map, 1,094 workers live and work in Campbell, 20,659 commute into Campbell to work and 18,517 commute out from Campbell. Although the data is two years old, it is important in terms of the regional context of employment/jobs in proximity to Campbell.
• This commute data is also supported by the responses received through the business and resident surveys.
4 Note: This review was supported and provided by Dr. Rob Eyler, Economist, Economic Forensics and Analytics, Professor Economics at Sonoma State, visiting scholar University of Bologna and Stanford University.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan 2019-2022 JOBS & GROSS

REGIONAL PRODUCT RECOVERY

FROM THE PANDEMIC DISRUPTION
5 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan 2019 – 2022 Recovery
6 5,124
20,143
899
5,682
21,089
942
Traded Sector Population Visitor
Jobs Recovery
2019 Jobs 2022 Jobs
$1.3
$3.8
$0.915$1.5
$4.3
$0.104
Traded Sector Population Visitor
GRP Recovery ($B)
2019 GRP 2022 GRP
Source Jobs: Census Bureau, California EDD, EFA
Source GRP: Bureau of Economic Analysis, California EDD, Census Bureau, EFA adjusted for inflation • Job recovery is shown for
each economic driver, using
2019 as a pre-pandemic
benchmark.
• GRP recovery primarily in
traded and population-
driven sectors.
• The visitor sector has yet to
recover, following national
trends. No clear indication
how or when the visitor or
tourism market is expected
to fully recover.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Sticky Pandemic Trends
7 New patterns of
demographics,
communications,
lifestyles.

Population growth
will shift, but not yet
reflected in data.

Households are
trending smaller.

Households seek
low maintenance,
convenience, quality
public amenities,
quality schools.

Shift in emphasis on
suburban growth
and working-from-
home, alternative
work schedules.

Changes in market
for commercial real
estate, particularly
office space and
retail.

Inflation and higher
interest rates.

The pandemic was a major disruption to all economies and has left some “trends” that could last and/or may discontinue but they merit watching.

Remote workers
have decreased
slightly in last year..

Threat of recession
and high mortgage
rates will curb
economic activity.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Traded Sector Drivers
0 500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Construction Manufacturing
Employment
2019 2020 2021 2022
July 25, 2023
8 $0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
$1,200.0
$1,400.0
Construction Manufacturing
GRP (millions)
2019 2020 2021 2022
Source Jobs: Census Bureau, California EDD, EFA
Source GRP: Bureau of Economic Analysis, California EDD, Census Bureau, EFA Construction employment gained as home renovation and construction increased after 2020.

Manufacturing productivity slowed, even though employment slightly increased, as production was slower due to supply-chain problems and rising input costs.

As a whole, these drivers have recovered and exceeded 2019 levels.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Population Serving Driver-Employment
0 1,000 2,000 3,000 4,000 5,000
Utilities
Wholesale
Transp. Warehouse
Information
Finance, Insurance
Real Estate
Prof, Scientific, Technical
Management of…
Admin & Support
Education
Health Care, Social Srv
Public Admin
Other Services
2019 2020 2021 2022
July 25, 2023
9 Source: Census Bureau, California EDD, EFA
Population serving, or locally-serving businesses hired and re-hired as the economy re- opened in 2021 and 2022, leading the overall recovery in Campbell’s employment levels.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Population Serving Sector – Gross Regional Product
$0.0 $200.0 $400.0 $600.0 $800.0 $1,000.0 $1,200.0 $1,400.0 $1,600.0 Utilities
Wholesale
Transp. Warehouse
Information
Finance, Insurance
Real Estate
Prof, Scientific, Technical
Management of Companies
Admin & Support
Education
Health Care, Social Srv
Public Admin
Other Services
2019 2020 2021 2022
July 25, 2023
Campbell Economic Development Plan 10
Source: Bureau of Economic Analysis, California EDD, Census Bureau, EFA Professional services (legal, accounting, engineering, architecture) are high value-added industries due to relatively high wages and salaries and stand out more when considering GRP measures.

Slower growth in 2022 reflects continued inflation and thus slower growth in business revenues.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Visitor Serving Driver
0 500
1000
1500
2000
2500
3000
3500
Retail Arts,
Entertainment,
Recreation
Lodging, Food
Service
Employment
2019 2020 2021 2022
July 25, 2023
11 $0.0
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
$400.0
GRP (millions)
2019 2020 2021 2022
Source Jobs: Census Bureau, California EDD, EFA
Source GRP: Bureau of Economic Analysis, California EDD, Census Bureau, EFA The visitor sector has been slower to recover but is likely to beat early recovery forecasts made in 2020 for spending and employment . (By the end of 2023, aggregate recovery should be achieved.) Business travel is where long-term threats exist for a recovery to pre-pandemic benchmarks.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Business Sizes
<5
Employees,
5-9
Employees,
10-19
Employees,
20-49
Employees,
50-99
Employees,
100+
Employees,
July 25, 2023
12 Source: Census Bureau 2021 Zip Business Patterns, City of Campbell Business License * City of Campbell Business License List, as of April 2023, 3 business are exempt from business license fees. • Tracking the size of businesses in any location is challenging. The 2021 Census Zip Business Patterns is a good indicator of the size of businesses located in Campbell which is consistent with Campbell Business License data as of April 2023 .
• Small businesses clearly account for most of the economic activity in Campbell. • Nearly 95% of Campbell’s business establishments employ fewer than 20 people.

City of Campbell, Business License
April 2023
# of Employees # of Businesses
Exempt Business 3*
0 526
1-10 Employees 2531
11-20 Employees 204
21-49 Employees 120
50-75 Employees 26
76-100 Employees 10
101-150 Employees 14
151-200 Employees 3
201-550 Employees 11
Total Businesses 3448

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Population of Campbell
• The City’s population declined each year
from 2019 to 2022; the four-year average
annual decline was 0.6%.
• The steeper decline seen in 2021 is most
likely consistent with the national trend of
exodus from urban areas and higher
populated communities to more rural areas.
• The California Dept. of Finance and Dept. of
Transportation projections expect a slight
increase (1.1%) in population annually from
2024 to 2030 which may be dependent on
housing availability.
• Plan Bay Area 2050 projects a growth in
households between 1-3% annually, 2024 to
2050.
13 43,969
43,886
43,086
42,833
2019 2020 2021 2022
Source: California Department of Finance, CA Dept of Finance, CA Dept of Transportation, Metropolitan Transportation commission Plan Bay Area 2050

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Distribution of Population by Age (2021)
14 0%
5%
10%
15%
20%
25%
<19 y/o 20-29 y/o 30-39 y/o 40-49 y/o 50-59 y/o 60-69 y/o 70+ 2019 2020 2021
Source: Census Bureau ACS 2021 5-Year Estimates, City of Campbell • Median age in the City of
Campbell is 39 which is on
par with the San Jose
Metro Area median age of

38. • There was a decline in
the 20 to 29 age bracket
from 2019 to 2021.
• The slight uptick in the
younger population (<19)
is encouraging as more
people age and leave the
workforce.
• As with most communities
the 60 to 69 age bracket
population increased.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Population Diversity
15 65%
3%
21%
6% 6%
60%
2%
24%
6% 8%
57%
2%
25%
7% 10%
White Black/African
American
Asian Other race Two or More
Races
2019 2020 2021

49.5% 49.5% 50.1%

50.5% 50.5% 49.9%
2019 2020 2021
Male Female
Source: Census Bureau ACS 2021 5-Year Estimates, City of Campbell • Racial diversity in Asian
and other racial groups
and those reporting as
two or more races – is
increasing.
• The change in ratio of
males and females is
minimal staying relatively
stable at 50/50.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

WORKFORCE DATA
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell’s Workforce & Unemployment
17 2.3%

6.4%

4.4%

2.4%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%
25,600
25,800
26,000
26,200
26,400
26,600
26,800
27,000
2019 2020 2021 2022
Workforce Unemployment Rate
Source: California EDD LMI, Annual Average
• Unlike population, the workforce
increased in 2022.
• There was a post-COVID
unemployment spike in 2020 and
2021 which is consistent with
national unemployment.
• By 2022, the unemployment rate
returned to 2019 level albeit
significant lay-offs in high tech and
biotech sectors.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Educational Attainment (population 25+ y/o)
18 0.0%

10.0%

20.0%

30.0%

40.0%
Less than High
School
High
School/GED
Some College Associate
degree
Bachelor degree Graduate or
Doctorate
2019 2020 2021
Source: Census Bureau ACS 2021 5-Year Estimates
• The share of population with higher educational degrees is increasing most likely because there are more career opportunities and higher paying jobs for those who graduate from college. • The decline in those with “some college” may be attributed individuals earning higher degrees.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Talent Pipeline
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Talent Pipeline 0-19 y/o Prime Workers 20-39 y/o Experienced Workers 40- 59 y/o
Retiring Soon 60-74 y/o
2019 2020 2021
19 Talent Pipeline = source of the future workforce
Prime Workers = recent entrants to the job market
Experienced Workers = institutional knowledge
Retiring Soon = will not be in the labor market much longer Source: Census Bureau ACS 2021 5-Year Estimates, City of Campbell • Slight uptick in the size of population in the Talent Pipeline. • Growth is flat in the primary workforce (Prime Workers and Experienced Workers). • Greatest growth is seen in the Retiring Soon group, which is a national trend.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Flow of Workers – In and Out of Campbell
20 • The Census tracks workforce flow in and
out of cities. This is an indicator of
residents working locally or leaving home
and working outside the boundaries of a
city.
• The latest data is 2020 and shows the
flow of workers in/out of Campbell.
• The data reflects working residents who
are employed in public and private sector
jobs in 2020:
• 21,744 residents of Campbell are
employed.
• Of those, 1,094 live and work in
Campbell, while 20,650 are
commuting into the city for work.
• 18,517 Campbell working residents
are leaving the city for employment in
other cities.
• Mean travel time to work is 26
minutes.*Source: Census Bureau On the Map, 2020 data
*The average commute in Santa Clara County is 29.2 minutes (Census Bureau 2020 data)

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

SOCIO-ECONOMIC DATA
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Housing Units
22 0
4,000
8,000
12,000
16,000
20,000
2019 2020 2021
Occupied Housing Units Vacant Housing Units
0 4,000
8,000
12,000
16,000
20,000
2019 2020 2021
Owner-Occupied Renter-Occupied
• 4.8% increase in number of housing units (2019-2021)
• Consistently half of occupied housing units are renters Source: Census Bureau ACS 5-Year Estimates, City of Campbell Owner-Renter OccupiedOccupied-Vacant Housing Units

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Housing Costs: T o Purchase or Rent
23 $1.114
$1.225
$1.403
$1.548
Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022
Median Home Price ($000)
$2,901
$2,783
$2,950
$3,085
Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022
Monthly Rental Prices
• Even during the pandemic, home prices experienced steady growth. • After a dip in 2020 for monthly rental, as of December 2022 rents have returned and surpassed 2019. • The average rent for a one-bedroom apartment in San Jose (same point in time) is $2,752 (rent.com). • The opportunity cost of rising home prices is reduced affordability Source: Zillow Research, EFA; Geography: City of Campbell

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Average Household Size
July 25, 2023
24 2.59

2.64 2.52
2019 2020 2021
• The increase in average
household size from 2019 to
2020 is perhaps due to COVID
– young adults or students
moving back home because of
cost, job losses, or other
situations.
• 2021 saw a return to pre-
pandemic levels.

Source: Census Bureau ACS 2021 5-Year Estimates, City of Campbell

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Median Household Income
July 25, 2023
25 • Median household income
increased by 6 percent from
2020 to 2021
• Median household income
in Santa Clara County for the
same period is $140,258.
$124,525
$122,644
$130,171
$118,000
$120,000
$122,000
$124,000
$126,000
$128,000
$130,000
$132,000
2019 2020 2021
Median Household Income
Source: Census Bureau ACS 2021 5-Year Estimates

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Sources of Income
26 • The median household income is increasing, (see page 25: Median Household Income), although the source of income is shifting.
• The source of income from wages has declined (from 85% in 2019 to 82% in 2021). • Income from retirement and other sources increased an indicator of population aging and accessing retirement funds.

85.3% 83.1% 82.4%

19.3% 20.4% 20.6%

13.4% 14.6% 15.3%

3.9% 4.2% 3.8%1.4% 1.7% 1.6%
2019 2020 2021
Wages Social Security Retirement Supplemental SSI Public Assistance Source: Census Bureau ACS 2021 5-Year Estimates

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Prepared by Project Consulting Team:

Audrey Taylor
(530) 345 -0364
www.chabinconcepts.com
Thatch Moyle
(503) 539 -1921
thatch@urban -scenarios.com
Brian Curtis
(530) 893 -4623
[email protected]
Christine Firstenberg
925-381-8666
[email protected]

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan TRANSMITT AL Economic Development Strategy Update
Phase I-Where are we now? Existing Conditions
The Economic Development Strategy approach
involves three-phases:

Phase I – Where are we now?
Phase II – Where do we want to be?
Phase III – How will we get there? Phase I Working Papers

2. Working Papers – Real Estate (commercial,
office and industrial)
City of Campbell Vacancies
City of Campbell Market Conditions

3. Working Paper – Sales Tax Review

4. Working Papers – Marketing
City of Campbell Social Media Presence
City of Campbell Website
City of Campbell Perceptions

5. Working Paper – Economic Scan

Phase I includes research, document and plan
reviews and listening to stakeholders.

Existing conditions set the baseline from which the
consulting team starts to create the strategic economic development plan.

Phase I, also referred to as
Existing Conditions, focuses
on what generates current
economic activity and the
business environment for
the three economic driver:
• traded sector,
• population and
• visitor.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

WORKING PAPER
Phase I Existing Conditions
Market Conditions
City of Campbell
Economic Development Strategic Plan
Date: June 29, 2023
Working Papers are prepared for city review of project tasks. Working papers include task findings, opportunities/challenges, possible implications of findings and potential actions that could be taken. Intent is to review with staff to ensure Team is on track and did not miss existing policies, work efforts and/or plans.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Phase I – Existing Conditions
Market Conditions Summary
The purpose of this working paper is to describe how current market conditions will influence Campbell’s strategic plan implementation. There is emphasis on retail as requested by the city.

Below is summary highlights:
• A consistent stakeholder comment “Campbell is perceived as a quiet, safe community, and a wonderful location to raise a family.”*
• Campbell, a suburb of San Jose with a population of 42,833, is a city smaller in population than surrounding cities but larger than Los Gatos and Saratoga (by 10,000+). • Campbell’s population decreased by two percent 2020-2022, less than San Jose and Saratoga (4%) and Los Gatos (3%).
• Campbell has been rated as one of the best places to live in California. (Niche.com) • Campbell's proximity to Silicon Valley/San Jose has been stated by stakeholders as an advantage for technology and innovation businesses.
• Campbell has a diverse range of industries, many of which serve customers from San Jose and the region.
• Campbell’s availability of commercial real estate may be limited and competition for desirable properties can be high.

Campbell Economic Development Plan 3
*Stakeholder input supported by responses in resident and business survey.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Business Environment Summary
Summarizing information from stakeholder meetings, real estate statistics and general business information:
• Campbell offers a stable, healthy environment to do business. • Campbell, from a location standpoint, is a desirous area for business. • There is demand from retailers and business owners to locate in Campbell, evidenced by low vacancy (reference: Economic Centers & Vacancy Working Papers) • There is a strong and communicative broker network leasing the available commercial real estate spaces. “…most often, available spaces lease up more quickly in Campbell than in many other Bay Area cities*.” • The exception is discount retailers, such as Dollar Stores. Campbell’s deep discount retailers do not fare as well as in other areas. This is likely due to the higher-than-average household income in Campbell. sing Placer AI foot traffic technology, a random review of reports on Campbell’s retail tenants shows most of them in the higher percentile of business activity and sales in the Bay Area. On the adjacent chart, Kohls in Campbell is ranked in the BLUE and Marshalls in Campbell is ranked in the RED * Source: Commercial Real Estate Broker Stakeholder outreach Campbell Economic Development Plan 4
* Source: Commercial Real Estate Broker Stakeholder outreach, Placer AI • Store Performance Rankings. Using Placer AI foot traffic technology, a review of reports on Campbell’s retail tenants shows most of them in the higher percentile of business activity and sales within all of their stores nationwide. On the adjacent chart, Kohl’s in Campbell is ranked in the BLUE (ranking percentile 73% of all Kohl stores in the nation) and Marshalls in Campbell is ranked in the RED (ranking percentile 71% of all Marshalls stores in the nation.)

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MARKET DATA
5 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Regional Setting
6 Campbell is located in the center of a
large metropolitan region which
allows Campbell businesses an
opportunity to draw from a larger
market within close proximity.

The San Jose-Sunnyvale-Santa Clara
Statistical Metropolitan Area,
referred as the San Jose Metro Area,
has a 2023 Population of 1.8 Million
with a projection of continued
growth.

Source: Macrotrends,United Nationsl World
Population https://tinyurl.com/6phr5dtf
Source: Macrotrends, United Nationsl World Population https://tinyurl.com/6phr5dtf

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell Demographics
Campbell Economic Development Plan 7
Source: 2020 Decennial Census, ACS 2019 5-year estimates 42,833
$130,171
21,744
Single Family Detached

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Location – Access and Transportation
The commercial real estate in Campbell
is very well located with easy access off
the local freeways.

Campbell is surrounded by freeways
and State routes.
• Interstate 280 lies to the north,
• State Route 85 to the South;
• State Route 17 and San Tomas
Expressway cut north-south through
the middle of Campbell.

Campbell Economic Development Plan 8

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan National Retail Trends
Demand for Retail Space Rose After the Pandemic
• Demand for retail space has grown continually since the Pandemic. But very little shopping center space has been built.

This has resulted in a national vacancy rate of 5%-7% across the country for retail space.
• Convenience, flexibility with returns, and innovation is at the top of customer’s minds.
• Nationally and in the Bay Area, there has been a resurgence in leasing activity that has been driven partly by strong demand for smaller spaces as the average footprint leased fell to a new historic low during the year to just over 3,000 square feet. • Total Retail Sales, including online sales, that occurred nationally rose by 19.3% in 2021 over 2019.
• The US Retail Market absorbed 76.5 million square feet in 2020. • National Store closings hit all time low in 2021. There were more store openings than closings across the country in 2022. • Vacancy Rates have continued to go down nationally in 2023 and are expected to continue as such until construction costs decrease.

Source: Misc. news articles including International Council of Shopping Center Research
Source: Miscellaneous news articles including International Council of Shopping Center Research

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

ESSENTIAL TENANTS THAT GREW DURING COVID
National Retail Trends
Types of tenants where sales grew over the last three years:

BUILDING

MATERIALS
(Home Depot, Lowes)

GENERAL

MERCHANDISERS
(Target, Walmart, Costco)

GROCERY
(Safeway, Whole Foods,
Ranch 99)

NONSTORE
(ONLINE)

RETAILERS

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

SERVICE FITNESS
Small and Large

EXPERIENTIAL &

ENTERTAINMENT

TENANTS
Bowling, Sports Goods,

RESTAURANTS
National Retail Trends
Types of tenants that were most active in opening stores-last three years:

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Example of Trade Area Draw
Campbell Economic Development Plan 12
Using Placer AI foot- traffic analysis, during 2022, 70% of the people that visited Downtown Campbell, came from within a 5-mile radius of the downtown, an indication of the trade area draw.

Source: Placer AI

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ECONOMIC CENTERS
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Economic Centers in Campbell
• Economic Centers - The ESRI storymap platform maps and documents show the City’s ten economic centers:

1. Pruneyard

2. Downtown

3. Hamilton Plaza

4. Campbell Shopping Center

5. Kirkwood Plaza

6. San Tomas Plaza

7. Campbell Plaza

8. Hamilton Square

9. Dell Avenue

10. McGlincy
• https://tinyurl.com/3wcrt5ce
Campbell Economic Development Plan 14
12 3
4 5 6
7 8
9 10

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Retail Market – 2.9 Million Sq Ft
Campbell’s Main Retail Areas:
• The Pruneyard is widely known as a strong retail center with tenants producing high sales volumes. Anchors include Pruneyard Cinemas, Sports Basement, Trader Joes, Marshalls, and many small retailers and restaurants.
• Its neighbor, Hamilton Plaza anchored by Whole Foods, CVS, Ross and Ace Hardware is also known in the real estate community (brokers and expanding retail stores) for high sales volumes and extremely limited vacancies. Currently there is only one small space that is vacant.
• Downtown Campbell is thriving with minimal vacancies. Downtown draws customers from all surrounding cities as a destination.
• Kirkwood Plaza services the western edge of the City and is anchored by Nob Hill Foods, Walgreens and Big 5.
• San Tomas Plaza is anchored by Grocery Outlet and Dollar Tree. • Campbell Shopping Center supports a Safeway and Citibank as anchors, while Campbell Plaza houses the second Safeway in the City on Winchester Blvd. • Lease rates for retail range from $36 to $67 per square foot per year depending on space and location.
• Overall, the perception in the market is Campbell’s retail is strong, and Campbell is a desirable place to locate.

Campbell Economic Development Plan 15

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell’s Major Retail Center Locations
For more detailed
information on the
Major Retail
Centers, each center
has been profiled on
ESRI storymap,
referred in this
document as
Economic Centers.

Profiles of each
economic center.

Campbell Economic Centers
Campbell Economic Development Plan 16

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Downtown Campbell
• Campbell’s Downtown is well known within its trade market area and draws visitors and customers from the surrounding cities.
• Downtown Campbell has many events that bring people into the Downtown to shop and dine.

The Downtown provides a robust shopping and dining experience. • The Downtown’s weekly Farmers Market draws from a larger than citywide trade area and is a very valuable tool for bringing people into the downtown. • The current roster of downtown merchants provide products which typically cannot be found online (local retailers, restaurants and personal service tenants). • Sales tax volume generated from the Downtown merchants for the calendar year 2022 was $648,282 - strong performance in an area where many of the approximately 158 businesses are non-sales tax generating businesses.

Campbell Economic Development Plan 17
Reference Downtown Campbell Map and Profile in Economic Center, Campbell Downtown, Source: PlacerAI technology. • Downtown is perceived as a place that is somewhat
easy to park.
• The Downtown had 2.4 million “visits” in 2022. The
grocery anchored center, Hamilton Plaza, where
shoppers typically shop weekly had a similar number
of visits. If Downtown was considered a
Neighborhood Shopping Center, it would be in the
top 90% of centers in the State of California.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Industrial & Flex /R & D Market
Industrial: 2.9 Million SF
Campbell’s industrial vacancy is low at 7.8%* and many
of the spaces are used by smaller service companies like automotive, flooring sales and warehouse rentals.

Many businesses pull sales from cities surrounding
Campbell due to the lack of similar types of
industrial/warehouse product in those surrounding
cities. There seems to be good demand for this type of commercial real estate with very little opportunity to
build more of this type of space in Campbell or the
surrounding cities. Lease rates for this area range from $22/sf/yr. to $29/sf/yr.

Flex/R & D: 810,719 SF
At a 3% vacancy*, Campbells’ Flex R & D spaces are in
high demand. Once a space vacates a new tenant is
quickly found as long as the zoning works for the new
business.

It is likely demand is stronger/larger than the supply, indicating possible development opportunities in the
future, if/when construction costs return to a normal
level and there are available sites. Lease rates range from $33- $36/sf/year.
*Reference: Working Paper Vacancy
Campbell Economic Development Plan 18
Campbell Economic Centers
Major Industrial and Flex Areas
Dell Economic Center
McGlincy Economic Center

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Office Market

Class A vacancies are clustered in the Hamilton-Hwy 17
and one in the Dell Avenue area (ref. Working Paper
Vacancies). Rental rates in Campbell and Silicon Valley have maintained their position above pre-Covid levels.

Despite an increase in available spaces, the requested
rents for high-quality properties have remained stable.

Current asking rents for buildings with comprehensive
services are 5.5% higher than levels seen before the
pandemic.

However, net effective rents, which take into account
incentives and concessions provided by landlords, are
approximately 36% lower than the asking rents,
indicating that landlords are offering more attractive
deals to attract tenants.

Class B vacancies located throughout Campbell (ref
working Paper Vacancies). Direct available square feet remains lower than in Class A. Also, the amount of
sublease space in the Class B category remains
comparatively lower than the higher quality Class A
properties.

Sectors outside of technology, especially professional
services, have shown a greater preference for resuming
operations in office environments therefore creating
stronger demand for this type of space. The lower
rents help this demand also.

Campbell Economic Development Plan 19
Campbell Economic Centers
Major Office Areas – Class A
Highway 17
Hamilton Ave
Highway 17
Winchester Blvd
Lease rates:

Class A $59-$63
Class B $31-$54
Class C $21-$30

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Consultant Observations – Market Conditions
Following are consultant’s key take-aways to be considered during the preparation of the Economic Development Strategy:

1. Most of Campbell’s market conditions are well situated for continued prosperity in business and residential attraction.

2. Campbell’s population is growing in diversity.

3. Campbell’s existing businesses seem stable with most having better than average sales and customer patronage.

4. New businesses that want to open in Campbell face challenges though:
• With a limited amount of retail/industrial/or Flex-R & D space available for new businesses, it is hard to find a site that fits a new business perfectly. • Stakeholder comments both from brokers and businesses indicate the zoning/permitting process is challenging to maneuver, costly and time consuming. • Constructions costs in Campbell, as throughout the Bay Area, are very expensive.

5. Campbell has very good ingress/egress from the major freeways surrounding it.

6. Campbell’s Downtown events are very well attended by citizens of Campbell and other communities.

7. Campbell’s Downtown has become known for its high quality restaurants, bars and shops.

8. Campbell has some amazing small businesses that generate very strong sales tax annually.

9. Care needs to be taken to make certain that the downtown, and other high sales production businesses stay in the City’s focus and attention. Making certain the business environment continues to be positive for these groups.

July 23, 2023
Campbell Economic Development Plan 20

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Prepared by Project Consulting Team:

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan TRANSMITT AL Economic Development Strategy Update
Phase I-Where are we now? Existing Conditions
The Economic Development Strategy approach
involves three-phases:

Phase I – Where are we now?
Phase II – Where do we want to be?
Phase III – How will we get there? Phase I Working Papers

2. Working Papers – Real Estate (commercial,
office and industrial)
City of Campbell Vacancies
City of Campbell Real Estate Market
Conditions

3. Working Paper – Sales Tax Review

4. Working Papers – Marketing
City of Campbell Social Media Presence
City of Campbell Website
City of Campbell Perceptions

5. Working Paper – Economic Scan

Phase I includes research, document and plan
reviews and listening to stakeholders.

Existing conditions set the baseline from which the
consulting team starts to create the strategic economic development plan.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

WORKING PAPER
Phase I Existing Conditions
Real Estate Vacancies
City of Campbell
Economic Development Strategic Plan
July 17, 2023
Working Papers are prepared for city review of project tasks. Working papers include task findings, opportunities/challenges, possible implications of findings and potential actions that could be taken. Intent is to review with staff to ensure Team is on track and did not miss existing policies, work efforts and/or plans.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Phase I – Existing Conditions
Real Estate Vacancies Overview & Summary
There are many market conditions that
contribute to vacancies in the City of Campbell.

Below is summary and the following pages
showcase the current vacancy rate and relevant
data as of June 2023.

Retail 7% Vacancy Rate is partially due to
physically obsolete spaces or spaces that are too
expensive to bring up to code. Excluding these
types of non-viable spaces, the “real” vacancy
rate is likely closer to 4%-5%, and this would be
considered a very low vacancy (availability) rate.

Office 30% Vacancy Rate is mainly due to the
national work from home trend that will take
time to reverse. This is currently not an
abnormal rate for the San Francisco Bay Area.

Industrial 7.8% Vacancy Rate and Flex R&D 3%
Vacancy Rate are minor and are considered
normal turnover rates in a very healthy market.

Campbell Economic Development Plan 3
Note: Working Paper Vacancies supports the
Economic Centers visual story map.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Commercial Real Estate - Square Footage based on
Parcel Usage
For purposes of determining the vacancy rate by real estate category (Retail, Office, Industrial and R&D) the consulting team calculated the total sq ft of each real estate category that existed in the City.

Vacancy Rate Methodology
• Total commercial real estate (CRE) listings
• Total square footage of Available/Vacant space divided into the total of ALL existing square footage of buildings in each category of commercial real estate - industrial, R & D, office and retail.

Note: The City website has posted a Summary by Land Use, www.campbellca.gov/254/demographics, which calculates total square footage by general plan land use designation and is not intended to be space “vacancy” calculation.

Real Estate Category Total Square Footage Vacancy Rate Retail 2,901,500 7.0%
Office 2,771,075 30.0%
Industrial 2,096,633 7.8%
R & D 810,719 3.0%

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

CAMPBELL REAL ESTATE VACANCY
5 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Overview Real Estate & Real Estate Vacancy
This working paper, Campbell Real Estate Vacancy, is an addendum to the Economic Centers ESRI story map platform with a focus on understanding the overall vacancies by use (retail, office, industrial, flex R&D). This provides a baseline for creating economic development actions to fill vacancies based on the City’s overall land portfolio and available spaces.

Campbell Economic Development Plan 6
Economic Centers Land Portfolio https://tinyurl.com/3wcrt5ce The ESRI storymap platform maps
and further describes the City’s
ten economic centers:

1. Pruneyard

2. Downtown

3. Hamilton Plaza

4. Campbell Shopping Center

5. Kirkwood Plaza

6. San Tomas Plaza

7. Campbell Plaza

8. Hamilton Square

9. Dell Avenue

10. McGlincy

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell’s Retail Vacancy
• 5% vacancy is considered, by industry standards, to
be a very healthy retail vacancy percentage.
• Information received from brokers and city sources,
indicates that many of these vacant spaces are in
lease negotiations and/or working their way
through the permitting process. This indicates that
the vacancy, in reality, may be even less than 5%.
• Retail vacancy rates will continue to drop over the
next two years due to increasing demand from local
and regional retail tenants and limited construction
of stand-alone retail centers has declined due to
construction costs.

Retail Vacancy Rate 7%
Total Retail Square Footage Portfolio in Campbell 2,901,500 sq ft Available Retail Space* 163,537 sq ft
2022 Total Retail Sales Tax Generated $7.6 Million
The size of available retail space (163,537 sq ft) varies throughout the city. While most spaces are smaller than 5000 sq ft, there are a few large spaces over 20,000 sq ft.

The largest available space is the former Fry’s building at 70,000 sq ft, which is part retail and part industrial.

If this space were taken out of vacancy equation, the vacancy rate would be just under 5%.

Source: Costar and MMRR, *as of current date June 26, 2023

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell’s Office Vacancy
• According to broker sources, the office vacancy rate
in Campbell was high before the pandemic.
• More than 75% of the office vacancy is found in four
buildings/areas: All of these considered Class A.
• Hamilton Plaza Tower I & II (154,712 sq ft)
• The Pruneyard Offices (132,153 sq ft)
• 1700 Dell (new ) (165,984 sq ft)
• Creekside Office Park (177,815 sq ft)
• Lease rates are:
• Class A $59-$63
• Class B $31-$54
• Class C $21-$30
• Even with the surplus of office space, asking rents
are averaging 5.5% above pre-pandemic levels,
although net effective rents are substantially lower.

This suggests that landlords are offering concessions
for tenant signed leases.

Source: CoStar, MMRR
Office Vacancy Rate 30%
Total Office Square Footage Portfolio 2,771,075 sq ft
Available Office Space* 831,322 sq ft

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell’s Industrial Vacancy
• Campbell’s industrial spaces generally stay
leased. Strong demand results in spaces
leasing quickly when one becomes available.
• Campbell’s industrial area serves a
regional consumer base.
• The single largest available industrial space is
located at the former Fry’s building which has
both industrial (approximately 70,000 sq ft)
and retail.
• Lease rates are very reasonable for the area
$22/sq ft/yr. to $29/sq ft/yr.
• There is strong demand for this type of
space because of lower rents, location
accessibility, and decreasing availability in
other cities. This type of tenant space turns
over quicker than other types.

Industrial Vacancy Rate 7.8%
Total Industrial Square Footage Portfolio 2,096,633 sq ft Available Industrial Space* 163,537 sq ft
2022 Total Industrial Sales Tax Generated $2.5 Million
Source: MMRR, Hdl 2022 Sales Tax Data, Co-Star

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell’s Flex & Research & Development (R&D )Vacancy
• Campbell does not have a large
portfolio of Flex*/R&D spaces within
the city limits.
• What inventory there is seems to lease
up quickly.
• Most of the R & D vacancy seems to be
in the Campbell Technology Park, 695
Campbell Technology Parkway (former
Winchester Drive-In)
• Lease rates range from $33 to $36/sq
ft/year
* Flex space combines elements of both office
space and industrial space, offering a versatile
environment that can accommodate a variety of
uses.

Flex R&D Vacancy Rate 1%
Total Flex R&D Square Footage Portfolio 810,719 sq ft
Available Flex R&D Space* 25,010sq ft
Source: Costar, MMRR

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Consultant Observations – Vacancy
Following contains the consultants’ key take-aways that will be considered in the preparation of the Economic Development Strategy:
• Vacancy within the different commercial real estate sectors varies widely. And each sector (category of real estate, i.e. retail, office , industrial, R & D/Flex) will have specific national and local economic trends that affect vacancy.
• Campbell’s commercial real estate vacancies are consistent with other Bay Area cities. • RETAIL:
• Campbell has very few retail vacancies on the market today. There are vacant spaces but the actual reasons for the vacancy reduce the overall concern. If a retail space stays vacant for longer than 6 months, there is probably an issue with the space that include:
1) The space is actually leased and the tenant is proceeding with the permitting process; 2) The space is vacant due to code compliance issues and the owner cannot or chooses not to address code requirements in order to lease it;
3) The space is physically obsolete for retailers in the market today and the building will need to be substantially re-configured to make it leasable (for example the former Fry’s building). • The size of the former Fry’s buildings at 70,623 sq ft, and the Bed Bath and Beyond building at 40,000 sq ft are the largest retail spaces available in Campbell. Their large size increases the retail vacancy rate to 7%. In reality, the actual vacancy rate (excluding these large spaces) is closer to 4- 5%.

July 23, 2023
Campbell Economic Development Plan 11

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan • OFFICE:
• The office vacancy in Campbell and the Bay Area concerns many public and private stakeholders.

The office vacancy in large, coastal cities (San Francisco, Seattle, Boston, and New York ) ranges from 25%-31%.
• Typically, Class A buildings which were previously leased at the highest rental rates, will have the highest vacancy.
• Smaller, local business tenants might be able to afford space in a Class B or Class C building. • While many vacant office buildings are considered for conversion to multi-family residential, larger buildings are more challenging to convert due to their large floorplates. • The largest office space availability* occurs in Class A space:
1) Pruneyard Tower 1& 2 and Pruneyard Place 132,153 sq ft; 2) Creekside Office Park 177,815 sq ft;
3) 1700 Dell 165,984 sq ft;
4) Hamilton Plaza Office Tower I & II (900 East Avenue Tower II) and 910 East Avenue Tower I) 177,815 sq ft
• The largest office availability in Class B space (most of the available Class B space are small offices spread throughout the City of Campbell)
1) The Cannery -- Water Tower Plaza-- (57,227 sq ft);
2) 307 Orchard City Dr- – (47,975 sq ft);
3) White Oaks Professional Building- (54,935 sq ft);
12 *Source: CoStar June 2023

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan • INDUSTRIAL:
• The industrial market in Campbell, as in the Bay Area, is quite strong, although there has been a small increase in availability in the last 12 months.
• The single largest available industrial space is located at the former Fry’s site (70,623 sq ft). While part of the building is being leased for retail, another part of the building is being marketed for industrial (60,171 sq ft).
• Other than this one large space, nearly all the other available industrial spaces in Campbell are smaller than 10,000 sq ft. These spaces lease quickly. • FLEX/R & D:
• Flex space is typically space that combines elements of both office space and industrial space, offering a versatile environment that can accommodate a variety of uses. It is used often by innovative tech companies and other start ups. This space is also desired by research and development companies often in the biotech or biomedical fields. • An example of this type of building in Campbell is 747 Camden, in the Campbell Business Center.
• Another example is Campbell Technology Park, with tenants in flex/R & D spaces like Dasher Technologies. Much of the Park, constructed in 1999, has been designated for future housing development.
• This type of space is prevalent in Silicon Valley and competes with space in Campbell. Any new space that is built must have the latest amenities and improvements and be located to major freeways to be more competitive.

July 23, 2023
Campbell Economic Development Plan 13

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Prepared by Project Consulting Team:

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan TRANSMITT AL Economic Development Strategy Update
Phase I-Where are we now? Existing Conditions
The Economic Development Strategy approach
involves three-phases:

Phase I – Where are we now?
Phase II – Where do we want to be?
Phase III – How will we get there? Phase I Working Papers

2. Working Papers – Real Estate (commercial,
office and industrial)
City of Campbell Vacancies
City of Campbell Real Estate Market
Conditions

3. Working Paper – Sales Tax Review

4. Working Papers – Marketing
City of Campbell Social Media Presence
City of Campbell Website
City of Campbell Perceptions

5. Working Paper – Economic Scan

6. Working Paper – Assets, Challenges &
Opportunities
These reviews, through an economic development
lens, are documented in Working Papers as
background and reference documents for city staff,
Advisory and Sub-committee information and further
discussion before developing strategies. Objective is
to share what the consulting team is observing.

Phase I includes research, document and plan reviews
and listening to stakeholders.

Existing conditions set the baseline from which the
consulting team starts to create the strategic economic development plan.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

WORKING PAPER
Phase I Existing Conditions
Sales Tax Review
City of Campbell
Economic Development Strategic Plan
June 20, 2023
Working Papers are prepared for city review of project tasks. Working papers include task findings, opportunities/challenges, possible implications of findings and potential actions that could be taken. Intent is to review with staff to ensure Team is on track and did not miss existing policies, work efforts and/or plans.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Sales Tax Generation Summary
The purpose for reviewing the City of Campbell’s sales tax generation is:
1) Identify major sources of sales tax contribution and importance of sales to the City’s budget 2) Understand the sales tax contribution by retail sales and other industry sectors 3) Identify high performing economic centers.
• Campbell’s sales tax for calendar year 2022 was $17.8 million including County Pool (included sales tax base 1% and 0.25% Measure O).
• The census reports Campbell’s sales tax per capita for 2022 was $331.42, which is higher than the average for cities in the Bay Area and slightly higher than Santa Clara County at $307 per person. • The total of retail sales tax and business sales tax revenue is the 2nd largest income producing category, after property tax, according to the City of Campbell’s 2022 Budget. • Retail sales represents 55% of all sales tax revenue generated. • Business, industry and construction had a strong recovery from the pandemic, exceeding pre-pandemic levels, although there are categories of businesses that have lagged the recovery. • 48% of sales tax revenue generated is from 25 companies. • Economic centers, areas where there are a cluster of businesses and employment, were segmented through out the city and each was mapped to measure the center’s sales tax generation. The largest economic center sales generators are Dell Avenue (business and industry sales and use tax) and Pruneyard (retail sales).
• To understand the potential impact of identifying commercial sites to be converted tohousing to meet Housing Element requirements, specific sites by address were mapped for retail areas. The areas selected by the city for possible conversion were those with the least financial impact to the city but will still reduce commercial land/buildings over time from the city’s sales tax generation portfolio.

Source: HDL 2022 and US Census Bureau
Campbell Economic Development Plan 3

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Recovery – Pre-Pandemic to Post Pandemic Sales
Tax Comparison
The pandemic was a major disruption to residents,
businesses and cities. Many cities' economic base
producers, as measured by sales tax revenue, are
still recovering from this economic shock. In
Campbell almost all the business categories have
returned or exceeded the pre-pandemic levels,
reference Chart 1.

Chart 1 compares sales tax by Major Groups* in
2019, pre-pandemic to 2022, post pandemic.
• The percent change column if a major sales tax
group has recovered its total sales tax revenue post-
pandemic.
• Some major Sales Tax Groups have not fully
recovered and are noted in red.
• Food and drugs likely recovered but there are
spending shifts in categories as consumers changed
buying habits to online.
• Hotels, which is included in major group Restaurant
& Hotels, has lagged nationally, which has affected
the full recovery of this major group.
• Travel and hotels one of the hardest hit business
categories during the pandemic, has started
recovery but still lagging. (Chart 2 TOT Tax).

July 28, 2023 Campbell Economic Development Plan 4
Sales Tax by
Major Group
Yr. End
2019
Yr. End
2022
%
Change
* As reported to the City by HdL sales tax consultant for the sales tax base at 1%, adjusted for economic data. Does not include Measure O

0.25% which is reflected in the City’s overall sales tax receipts, page 3. Source: City of Campbell, HdL Sales Tax by Major Group 2019-2022, City of Campbell Finance.

TOT Tax is
indicator for
Hotels/Lodging
Yr. End
2019
Yr. End
2022
%
Change
TOT Tax 4,652,000 3,281,000 -29.5%
CHART 1 – 2019-2022 Sales Tax Revenue Change*
CHART 2 – 2019-2022 TOT Tax Revenue Change

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Retail Sales as a Percent of all Sales Tax
Campbell Economic Development Plan 5
• For the Economic Development Strategy Update the city requested a focused review of retail. A review of the percent of sales tax revenue contributed by retail sales is an indicator of the importance of the retail market to Campbell’s economic base.
• Using HdL Sales Tax Data, 2022, four different groups, highlighted in yellow in Chart 2, represent the total contribution of sales tax for retail sales: Food & Drugs, General Consumer Goods, Restaurant & Hotels and County Pool (represent online sales which is shared in the county). • The four categories combined indicate that 55% of all sales tax generated in Campbell are from retail sales.

A 55% ratio indicates a balance of sales tax generated between retail and business, industry and non-retail (commercial services and all other businesses collecting sales tax). Also indicates Campbell is not overly dependent on one industry group but is diverse in their business mix.

CHART 2 Major Industry Group Yr. End 2022
Autos & Transportation 680,385
Bldg & Construction 1,984,772
Business & Industry 2,472,342
Food & Drugs 679,713
Fuel & Service Stations 1,038,246
General Consumer Goods 1,818,568
Restaurant & Hotels 2,427,012
Transfers & Unidentified 8,907
County Pool 2,692,069
State Pool 4,952
Total Retail 7,617,362
Total All Other Groups 6,189,604
All Retail
(inc. Hotel,
not TOT)
55%
All Other
Sales
45%
All Retail Sales Compared to All Other
Sales
Source: HdL Sales Tax Data, 2022, Major Groups

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

CITY OF CAMPBELL

ECONOMIC CENTERS
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell’s 10 Major Economic Centers
Campbell Economic Development Plan 7
In order to analyze sales tax, the city was segmented into ten “economic centers” defined as specific areas within the city where there are concentrations of employment, production and service that create economic activity for the city. Economic centers are typically significant contributors to overall economic impact as well as the greatest generators of sales tax revenue.

Legend
Orange – Retail Center
Blue – Business & Industry

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Sales Tax Generated by Economic Centers
8 As part of the research, with city staff assistance, each of the retail and light manufacturing areas were mapped as economic centers, where the concentration of businesses, employment and sales occur.

Segmenting the centers helps to better understand how the businesses in these centers are performing as whole within the city. Using sales tax generated has an indicator for each economic center further helps to understand the economic contribution and dynamics of those businesses located in a center.

The ten economic centers are listed in Chart 3 by type and ranking of calendar year 2022 sales tax generated. CHART 3
Name of Economic Center
Commercial
Retail Sales
Light Mfg
Industrial
2022 Sales
Tax Ranking
Dell Avenue X 1
East Hamilton Corridor x 2
Pruneyard X 3
McGlincy X 4
Downtown X 5
Hamilton Plaza X 6
Campbell Shopping Center X 7
Kirkwood Plaza X 8
San Tomas Plaza X 9
Campbell Plaza X 10
Hamilton Square X 11
Source: City Campbell, HdL 2022 Sales Tax by Economic Center (Geoboundaries by Urban Scenarios & Metrovation Retail Resources Note 1: Each center is unique in size
and mix of business. Sales tax is an
indicator of dynamic business activity
occurring in a center.

Note 2: The Dell & McGlincy economic
centers are home to businesses
considered traded sector, where many
businesses export product or services
outside Campbell and bring dollars
back to the city.

Note 3: The retail-based economic
centers are considered local serving
and visitor driven as they serve both
residents and visitors (people from
outside Campbell).

Note 4: Traded sector drives $2.9M
and the local-serving drives $2.7M in
sales tax, nearly a 50/50 balance.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Sales T ax Generators
• Another economic development indicator, the top
sales tax producers, helps understand specific
business types that are driving sales tax revenue
and the importance of those businesses for
providing jobs and as contributors to overall
economic impact in the city.
• For Campbell 48% of sales tax revenues are
generated by 25 companies, that are a mix of
locally-serving and traded sector businesses Sales
tax represents 29% of the revenue for the city
operating budget.
• Chart 4 lists those 25 companies producing nearly
half of all sales tax in Campbell during CY 2022.
• From a general fund standpoint maintaining these
high producing sales tax generators is important
and should be monitored as they are affected by
the regional, state and national economies.

CHART 4 - TOP 25 SALES TAX PRODUCERS
Amazon MFA Marshall’s
Andros Rostij Ross
Argonaut Window & Door Safeway
Chargepoint Safeway Fuel
Chevron Shell
Dasher Technologies Shell
Economy Lumber Sierra Pacific Turf
Supply
Gardenland Power
Equipment
Sports Basement
Home Depot Sunnyoaks Valero
Imperative Care Swimoutlet
Joe Escobar Diamonds Trace 2
Kohl’s Whole Foods Markets
Luna Mexican Kitchen
July 28, 2023 Campbell Economic Development Plan 9
Source: HDL Tax Data, 2022, Top 25 Sales Tax Producers
Top 25 Sales Tax
Producers
48%
52%
CY 2022 Percentage of Sales Tax
Generated by Top 25 Sales Tax
Producing Businesses 48% of all Sales
Tax Generated
52% All Other Sales
Tax Producers
Combined

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Location of T op 25 Sales Tax Companies
for Calendar Y ear 2022
July 28, 2023 Campbell Economic Development Plan 10

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

BALANCING LAND USE DECISIONS

COMMERCIAL REAL ESTATE &

HOUSING NEEDS
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Land Use – Revenue Generation
The City of Campbell’s 6th Cycle Housing
Element provides its housing strategy for
2023-2031, including a Site Inventory and
other documentation identifying areas
that can be converted to housing. This Site
Inventory includes the City’s Regional
Housing Needs Allocation (RHNA) and
must be certified by the California
Department of Housing and Community
Development (HCD) which
July 28, 2023 Campbell Economic Development Plan 12
Different land uses generate tax revenue for cities’ general funds. A good mix of land uses can help maximize revenue opportunities for the city.

The challenge is to maintain a balance between business/industry land uses that generate sales and property tax revenues and the need for more housing.

By state law, cities are required to plan for housing that meets the needs of residents. State laws recognize that there is a state-wide housing shortage.

Source: City of Campbell 6th Cycle Housing Element, H.IV-2

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Economic Development Role in Land Use
Conversion
Campbell Economic Development Plan 13
The economic development strategy update required an in-depth look at retail in the city.

The new housing element has identified properties for potential conversion from commercial to housing. From an economic development perspective, if the sites are developed for housing, the following questions can help assess any potential economic impacts:
• Will a sales tax generating use be displaced?
• Can the sales tax generator(s) be relocated elsewhere in the city? • Can commercial spaces that generate sales tax be included in the new residential project?
• Will a property tax increase result from the new residential development that might offset the loss or reduction in sales tax?
The following six retail site areas are examples of the potential conversion from commercial use to housing.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Housing
Element -
Commercial
Real Estate to
Housing
Sites identified for
housing conversion if
property owner
chooses to redevelop:
1) San Tomas Aquino
Area
Campbell Economic Development Plan 14

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Sites identified for
housing conversion if
property owner
chooses to redevelop:
2) Hamilton Ave at San
Tomas Expressway
July 28, 2023 Campbell Economic Development Plan 15
Housing
Element -
Commercial
Real Estate to
Housing

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Sites identified for
housing conversion if
property owner
chooses to redevelop:
3) North Winchester
Blvd and Hamilton Ave
July 28, 2023 Campbell Economic Development Plan 16
Housing
Element -
Commercial
Real Estate to
Housing

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Sites identified for
housing conversion if
property owner
chooses to redevelop:
4) East Hamilton, I-17,
and East Hamilton and
South Bascom
July 28, 2023 Campbell Economic Development Plan 17
Housing
Element -
Commercial
Real Estate to
Housing

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Sites identified for
housing conversion if
property owner
chooses to redevelop:
5) Pruneyard, East
Campbell Ave and
South Bascom Ave
July 28, 2023 Campbell Economic Development Plan 18
Housing
Element -
Commercial
Real Estate to
Housing

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Sites identified for
housing conversion if
property owner
chooses to redevelop:
6) South Winchester
Blvd and Campbell
Technology Park
July 28, 2023 Campbell Economic Development Plan 19
Housing
Element -
Commercial
Real Estate to
Housing

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Consultant Observations – Sales Tax Revenue
Following are the consultants’ key take-aways that will be considered during the preparation of the Economic Development Strategy:

1. Sales tax revenue is important to the city’s operating budget representing nearly 30% for FY 2023-24.

2. All Major Group sales tax generators have recovered from the pandemic disruptions and in some Major Groups exceeded 2019 levels.

3. There is a balance of sales tax (55%) generated by locally-serving (retail) and traded-sector business & industry (45%) indicating a diverse pool of businesses. Any retail vacancy has not resulted in a decrease in retail sales tax revenue.

4. Identifying the city’s economic centers and using sales tax data as indicator shows the strength and importance of the Dell and McGlincy centers as major revenue contributors to the city.

5. The city’s housing element has identified commercial properties that can be converted to housing which may result in economic impacts. If there is a strong sales tax producer(s) at a site under consideration for conversion relocating that use can help sustain tax revenue for the general fund.

Campbell Economic Development Plan 20

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Prepared by Project Consulting Team:

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan TRANSMITTAL Economic Development Strategy Update
Phase I-Where are we now? Existing Conditions
The Economic Development Strategy approach
involves three-phases:

Phase I – Where are we now?
Phase II – Where do we want to be?
Phase III – How will we get there?
Phase I Working Papers

2. Working Papers – Real Estate (commercial,
office and industrial)
City of Campbell Vacancies
City of Campbell Real Estate Market Conditions

3. Working Paper – Sales Tax Review

4. Working Papers – Marketing
City of Campbell Social Media Presence
City of Campbell Website
City of Campbell Perceptions

5. Working Paper – Economic Scan

6. Working Paper – Assets, Challenges &
Opportunities
These reviews, through an economic development
lens, are documented in Working Papers as
background and reference documents for city staff,
Advisory and Sub-committees for further discussion
before moving forward. The Objective is to share
what the consulting team has observed.

Phase I includes research, review of documents and
plans and listening to stakeholders.

Existing conditions set the baseline from which the
consulting team starts to create the strategic economic development plan.

Phase I, also referred to as
Existing Conditions, focuses
on what generates current
economic activity and current
business environment for the
three economic drivers:
• traded sector,
• population and
• visitor.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

WORKING PAPER
Phase I Existing Conditions
Social Media Presence
City of Campbell
Economic Development Strategic Plan
July 11, 2023
Working Papers are prepared for city review of project tasks. Working papers include task findings, opportunities/challenges, possible implications of findings and potential actions that could be taken. Intent is to review with staff to ensure Team is on track and did not miss existing policies, work efforts and/or plans.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Phase I – Existing Conditions
Social Media Presence Overview
As part of the Economic Development Strategy update the city requested an economic development marketing strategy. During this phase the consulting team has:
• Reviewed the city’s marketing efforts and channels to fully understand the current social media presence with residents, businesses, visitors and real estate brokers/developers
• Reviewed other organization and private business social media that helps to market Campbell.

Social media accounts were gathered where when using the search words “City of Campbell” could be easily found. Following is a summary of the reviews of each social channel that prominently mentions Campbell including a profile of their followers, likes, and overall messaging and some examples of content placed on those platforms.

This review helps the consulting team evaluate opportunities to enhance social media presence, followers and messaging to target audiences and prepare the marketing strategy.

Note: Accompanying Working Paper is Website Review.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Summary – City of Campbell Presence
As of the date of this working paper, the City of Campbell has a presence on several social media platforms, including Facebook, Instagram, Twitter, YouTube, LinkedIn, and Nextdoor:

1. Facebook: The City of Campbell's Facebook page has 3.9K followers. The engagement is relatively low, with around 1-5 likes per post, zero to two comments, and an occasional share. The post frequency is 1-3 per day. The content primarily includes city events, recreation, job opportunities, PSAs, and community outreach opportunities.

2. Instagram: The Instagram account has 3.3K followers and a slightly better engagement than Facebook, with around 98 likes per post, occasionally a post will get 75-100 likes. The post frequency is at least once a day with an occasional 2 per day. The content is similar to that of Facebook.

3. Twitter: The Twitter account has 2K followers with about 0-10 likes per tweet, 0-5 retweets per original tweet. The content includes events, recreation, PSAs, and job opportunities.

4. YouTube: The YouTube channel is primarily being used to showcase city meeting live streams. It has 246 subscribers and 438 videos.

5. LinkedIn: The LinkedIn page has 1,288 followers with an average of about 26 reactions over the last 10 posts and an occasional comment. The post frequency is about 2-3 posts a month. The content includes job opportunities, city council updates, and community programs.

6. Nextdoor: The Nextdoor page has about 1-3 reactions per post with a post frequency of about 1 post a week. The content includes resident surveys, community program information, and community updates.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell
City of Campbell Social Media Review
The following pages are screen shots of channels reviewed. The objective is to fully understand the presence City of Campbell, whether public or private, has in the marketplace.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Facebook
Facebook:
https://www.facebook.com/CampbellCalifornia
• Date Created: August 2011
• Followers: 3.9K
• Following: 71
• Engagement: Around 1-5 Likes per post,
zero to two comments, and an occasional
share
• Post Frequency: 1-3 per day
• Reviews: 4.5 stars (20 reviews)
• Headline: Campbell is a delightful
community where tradition and progress
blend successfully.
• Type of Content: City Events, Recreation,
Job Opportunities, PSAs, Community
Outreach Opportunities
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Facebook
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Instagram
Instagram:
https://www.instagram.com/cityofcampbell/
• Date Created: November 2015
• Followers: 3.2K
• Following: 139
• Engagement: Around 4-15 Likes per
post, occasionally a post will get 75-100
likes
• Post Frequency: Daily with occasional 2
per day
• Hashtag: #MyOrchardCity
• Type of Content: City Events,
Recreation, Job Opportunities, PSAs,
Community Outreach Opportunities
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Instagram
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Instagram
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Twitter
Twitter: https://twitter.com/CityofCampbell
• Date Created: April 2010
• Followers: 2K
• Following: 179
• Engagement: About 0-10 Likes per Tweet, 0-5 retweets per original tweet • Bio: “Official Twitter for the City of Campbell, CA. We are a progressive suburb of Silicon Valley with deep roots in our agricultural history. Est. 1952.” • Type of Content: Events, recreation, PSAs, and job opportunities 11 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Twitter
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - YouTube
YouTube: https://www.youtube.com/user/CityofCampbell
• Date Created: July 2011
• Subscribers: 246
• Videos: 438
• Type of Content: City Meeting Live Streams
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - YouTube
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - LinkedIn
https://www.linkedin.com/company/city-of-campbell-ca/
• Followers: 1,291
• Engagement: An average of about 26 reactions over the last 10 posts and an occasional comment.
• Post Frequency: About 2-3 posts a month.
• Bio: The City of Campbell, centrally located in the Santa Clara Valley, 50 miles south of San Francisco, and bordered by San Jose, Los Gatos, and Saratoga, was founded in 1846 by Benjamin Campbell. It was incorporated as a General Law City in 1952 and has a Council/Manager form of government. City departments, in addition to the City Manager’s Office, include Police, Public Works, Community Development, Finance, and Recreation and Community Services. Campbell is a suburban community with a population of 41,161 and a balance of land uses – commercial, industrial, and quality housing – within its six square miles. • Type of Content: Job opportunities, city council updates, and community programs. 15 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - LinkedIn
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - LinkedIn
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - LinkedIn
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Nextdoor
Nextdoor: https://nextdoor.com/agency-detail/ca/campbell/city-of-campbell • Engagement: About 1-3 reactions per post
• Post Frequency: About 1 post a week.
• Bio: No bio, but a phone number, email, website link, and address are listed. • Type of Content: Resident surveys, community program information, and community updates.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Nextdoor
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan City of Campbell - Nextdoor
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Chamber of
Commerce
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Chamber of Commerce

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Chamber of Commerce
Website: https://www.campbellchamber.net/
Facebook: https://www.facebook.com/campbellchamber
• Date Created: July 2010
• Followers: 3.2K
• Engagement: 2-7 likes on average, typically 1 comment and share • Post Frequency: 2-3 posts every 3 days
• Reviews: 4.8 stars (30 reviews)
• Headline: “The Campbell Chamber of Commerce is a non-profit organization that promotes the community of Campbell in all its aspects.”
• Type of Content: Event, Business, and Newsletter information Instagram: https://www.instagram.com/campbellchamber/
• Date Created: October 2015
• Followers: 1,736
• Following: 731
• Engagement: Typically around 2-10 likes per post with the occasional post reaching 20-30 likes, around 0-2 comments per post
• Post Frequency: 1 every day occasionally skipping a day • Type of Content: Event and business information
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Downtown Business
Association
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Downtown Business Association

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Downtown Campbell Business Association
Website: https://www.downtowncampbell.com/
Instagram: https://www.instagram.com/downtowncampbellca/ • Date Created: January 2014
• Followers: 10.8K
• Following: 179
• Engagement: 154 Average for last 10 posts, typically 1-10 comments occasionally a post will have up to 15
• Post Frequency: 2-3 posts per week
• Type of Content: Business highlights, event information, volunteer opportunities 29 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Downtown Campbell Business Association
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Downtown Campbell Business Association
Facebook: https://www.facebook.com/DowntownCampbell
• Date Created: January 2012
• Followers: 15K
• Engagement: Average of 53 likes per post for the last 10 posts, typically 1-5 comments sometimes reaching up to 25, around 1-10 shares per post • Post Frequency: 2-3 posts per week
• Reviews: 4.9 stars (128 Reviews)
• Headline: “Downtown Campbell is a thriving historic district in Silicon Valley with small town charm and big time Eateries, Wine Bars and Pubs, Shopping, and Events” • Type of Content: Business highlights and event information 31 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Downtown Campbell Business Association
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan 33 Downtown Campbell Business Association

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Other Campbell Entities
Campbell Farmers Market . Historical Museum
Ainsley House . Heritage Theater
Pruneyard . Orchard Kitchen
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Farmers Market
Website: https://uvfm.org/campbell-sundays/
Facebook: https://www.facebook.com/profile.php?id=100066530920494 • Date Created: April 2019
• Followers: 126
• Engagement: 0-2 likes per post and typically no comments or shares • Last Post: October 2022
• Reviews: No ratings yet
• Headline: “The Campbell Farmers' Market, previously held in Downtown Campbell, is now temporarily located at th” (Consulting Team Note: Headline gets cut off as it has too many characters).
• Type of Content: Fresh foods, updates, and articles
Instagram: https://www.instagram.com/thecampbellfarmersmarket/ (Page no longer active) replacement: https://www.instagram.com/campbellfarmersmarket/ • Date Created: January 2021
• Followers: 194
• Following: 34
• Engagement: 6-14 likes per post, 1 comment on 1 post
• Last Post: January 2021
• Type of Content: social posts, visuals of fruit and vegetables 35 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Farmers Market
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Farmers Market
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Historical Museum
and Ainsley House Foundation

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Historical Museum
and Ainsley House Foundation
Website: https://www.campbellmuseums.com/
Facebook: https://www.facebook.com/campbellmuseums
• Date Created: March 2011
• Followers: 1.5K
• Engagement: Average 2-7 likes per post, typically 0-2 comments and 1-4 shares • Post Frequency: Every 1-2 days
• Reviews: No reviews on site
• Headline: “We're two history museums in Campbell, CA!” • Type of Content: Historical facts, event updates, museum updates, and job opportunities 39 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Ainsley House
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Ainsley House
Instagram: https://www.instagram.com/ainsley.house/
• Date Created: June 2015
• Followers: 481
• Following: 102
• Engagement: Event info posts 1-3 likes per post, event photos anywhere from 20-150 likes per post, 0-2 comments per post
• Post Frequency: 3-4 posts per month
• Type of Content: Event information, event photos, and event videos 42 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Historical Museum
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Historical Museum and Ainsley House
Foundation Cont.

Instagram: https://www.instagram.com/campbellmuseums/
• Date Created: March 2014
• Followers: 1,212
• Following: 491
• Engagement: Average 1-9 Likes per post, typically 0-1 comments with a post occasionally getting 5
• Post Frequency: 1 post every 1-3 days
• Type of Content: Historical facts, event updates, and museum updates Twitter: https://twitter.com/campbellmuseums
• Date Created: March 2011
• Followers: 476
• Following: 378
• Engagement: 0-1 like per tweet on average, occasionally a tweet will get 1-3 retweets • Post Frequency: 1-2 posts per month
• Bio: “We're two history museums in Campbell, CA aka #TheOrchardCity.” • Type of Content: Event information
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan 46 Campbell Historical Museum - IG

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan The Heritage Theatre
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan The Heritage Theatre
Facebook: https://www.facebook.com/profile.php?id=100057475869136 • Date Created: September 2010
• Followers: 1.9K
• Following: 2
• Engagement: Average of 20 likes per post for last 10 posts, posts typically get 1-5 comments with the occasional post receiving upwards of 30, and most posts are shared 1-4 times
• Post Frequency: About 1 per month
• Reviews: 4.3 starts (288 Reviews)
• Type of Content: Show promotions
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Posts
49 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Pruneyard Shopping Center

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan The Pruneyard Shopping Center
Website: https://www.thepruneyard.com/
Facebook: https://www.facebook.com/ThePruneyard
• Date Created: October 2014
• Followers: 5.5K
• Engagement: 0-3 likes on average, occasionally a post will receive a couple of comments, no shares in last 15+ posts
• Post Frequency: 1 post every other day on average
• Reviews: No reviews listed
• Headline: “An iconic destination and experience designed to make the everyday extraordinary.” • Type of Content: Business Highlights and promotions
Instagram: https://www.instagram.com/thepruneyard/
• Date Created: January 2018
• Followers: 3,858
• Following: 939
• Engagement: Average of 38 likes for last 10 posts, typically posts will receive 1-3 comments with some reaching 5-10
• Post Frequency: 1 post every other day on average
• Type of Content: Business Highlights and promotions
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan 52 The Pruneyard Shopping Center - IG

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan 53 The Pruneyard Shopping Center - IG

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan The Orchard City Kitchen
Website: https://www.orchardcitykitchen.com/
Facebook: https://www.facebook.com/OrchardCityKitchen
• Date Created: May 2013
• Followers: 8,052
• Engagement: Average of 46 likes per post for last 10 posts • Post Frequency: A couple times a month
• Reviews: 4.1 stars (500 reviews)
• Headline: "Small plates, Big Flavor Dining at it's best. Michelin Starred Chef and Bib Gourmand Award Winning Restaurant, OCK serving the South Bay"
• Type of Content: Articles about restaurant and some food posts Instagram: https://www.instagram.com/orchardcitykitchen/ • Date Created: May 2015
• Followers: 7,236
• Following: 599
• Engagement: Average of 154 likes per post for last 10 posts • Post Frequency: 1-2 posts per week on average
• Type of Content: Food posts and people at restaurant
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan 55 The Orchard City Kitchen - IG

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan 56 The Orchard City Kitchen - IG

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan External Platforms
Trip Advisor
Google
Yelp
Travel Lens
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Approach
When approaching searches on various platforms, our team uses search terms that would most likely mirror user’s searches. We assume our users are unfamiliar to mildly familiar with the area. Sometimes results of searches bring back results for assets from other areas. This may appear like we are looking at the wrong area, but in fact the results are based on those that end up on a list monitoring and actively using marketing tactics so that their assets get included.

An example of successful return of search for an asset outside your area is The Winchester Mystery House. They have purposefully marketed to cities in proximity to the property so they might be included in a users travel planning while visiting Campbell. 58 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan TripAdvisor
When googling Things to do in Campbell, the following response came up:

1. Downtown Campbell Farmers’ Market

2. The Pruneyard

3. Ainsley House

4. Heritage Theater

5. Campbell Historical Museum

6. Montebello Road Vintage Wares General Store

7. Elements Massage

8. Golden State Quilting

9. Rendezvous Wine Bar

10.Recycle Bookstore West
59 Website: https://www.tripadvisor.com/Attractions-g32154-Activities- Campbell_California.html

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Google
When googling Things to do in Campbell, the following response came up:

1. Winchester Mystery House

2. Heritage Theater

3. Campbell Historical Museum

4. Campbell Farmers’ Market

5. John D Morgan Park

6. Campbell Community Center

7. Santana Row

8. Jack Fischer Park

9. Bottle & Bottega Painting with a Twist

10. Ainsley House
60 Website: https://www.google.com/travel/things-to-do

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Yelp
When googling Things to do in Campbell, the following response came up:

1. The Tortoise Home

2. Axe Ventures Axe Throwing

3. Immersive Gamebox

4. Fujitsu Planetarium

5. Miniboss

6. Winchester Mystery House

7. Water Lantern Festival

8. Sunnyvale Golfland USA

9. Fantasy of Lights

10. PurrFect Honey
61 Website:
https://www.yelp.com/search?find_desc=fun+things+to+do&find_loc=Campbell%2C+CA

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Travel Lens
When googling Things to do in Campbell, the following response came up:

1. Learn Local History at the Ainsley House

2. Relax at the John D. Morgan Park

3. Shop at the Pruneyard Shopping Center

4. See a Movie at the CineLux Plaza Theater

5. Unleash Your Inner Artist at the Art Beat

6. Explore the Campbell Farmers Market

7. Try Recreational Activities at the Jack Fischer Park

8. Spend the Day at Campbell Park

9. Catch a Show at the Heritage Theater

10. Play with Friends at the AFKxp Tech & Game Center

11. Join a Wine Tasting at the Travieso Winery

12. Learn about Glass Making at the Glass Scout Studio

13. Explore New Worlds at the Recycle Bookstore

14. Try the Olive Oil of the Olive Bar

15. Enjoy Girls’ Night at the Bottle & Bottega
62 Website: https://www.travellens.co/best-things-to-do-in-campbell-ca/

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Campbell Events Promoted
The following is a list of events that most often come up during searches:
• Downtown Campbell Weekly Farmers' Market (Sundays year round) • Voctave at Campbell Heritage Theatre (3/24)
• 22nd Annual Bunnies and Bonnets Easter Parade (4/8)
• 5th Annual Taste of Campbell (4/15)
• Boogie Music Festival 2023 (5/20 - 5/21)
• Beerwalk (8/5)
• 2023 Fall Wine Walk (9/20)
• 28th Annual Campbell Oktoberfest (10/21 - 10/22)
• Creepy Crawly Halloween Trick-or-Treat (10/29)
• Carol of Lights Celebration (12/2)
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Consultant Observations
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Consultant Observations
Following are consultant’s key take-aways to be considered during the preparation of the Economic Development Strategy:
• The accounts with the most significant follower counts are the Downtown Campbell Business Association Facebook and Instagram, with 14K followers on Facebook and 10.4K followers on Instagram.
• From the City of Campbell’s accounts two types of posts receive significant followers and views - the city’s water tower and Los Gatos Trail. There seems to be a high-level of community pride surrounding both of these.
• Strategically planning a posting schedule could help many of these accounts as they post sporadically, sometimes three times a day. Posting multiple times a day can lead to people tuning out the posts since they see so many from the same account. • Searches for Things to Do in Campbell on various sites brought up things to do near or outside of Campbell an indicator for Search Engine Optimization review and updating. • The social channels being used by the City are well designed, need deeper review to understand if there is capacity to optimized for increased engagement. • Instagram has more followers and better engagement than Facebook. • Both are relevant platforms and are being actively used. The audience following is smaller than expected given the relevance of the platforms.
• YouTube which typically has high engagement is primarily being used to showcase council meetings.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan • Planning does a lot of surveying and outreach as part of their outreach around projects that are moving through the city based on conversation with staff. Mailchimp is used for their outreach efforts to lists that have been developed or acquired.
• There is no centralized CRM being used by economic development or other departments. • Brand and outreach is centered around community focused content. • The Campbell Chamber of Commerce and Downtown Campbell Business Association are strong promoters in the region with solid user base.
• Both organizations benefit from regular engagement and content being delivered to their audiences. • A more coordinated content strategy could help build the digital brand for each organization as they have a shared audience.
• Coordinating efforts with the City could also enhance the overall messaging and engagement while showing all are united in supporting business in the region. • The Campbell Farmers Market is listed on multiple travel sites as a must-visit presence. There maybe opportunity to leverage this weekly event with more social media on city, chamber and downtown association channels. An active campaign utilizing video content on Instagram maybe a strategy to bolster this connection to residents and those outside the area who are interested in what Campbell has to offer. • You Tube channel could be expanded to showcase downtown, businesses, spaces, events working in tandem with other social platforms given video is the most watched content of all digital media. • Recreation Department, Heritage Theatre, Ainsley House and Capital Historical Museum seem to have opportunity to increase the frequency of postings to create a stronger following and eventually grow user base.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Prepared by Project Consulting Team:

Audrey Taylor
(530) 345-0364
www.chabinconcepts.com
Christine Firstenberg
925-381-8666
[email protected]
Thatch Moyle
(503) 539-1921
[email protected]
Brian Curtis
(530) 893-4623
[email protected]

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan TRANSMITTAL Economic Development Strategy Update
Phase I-Where are we now? Existing Conditions
The Economic Development Strategy approach
involves three-phases:

Phase I – Where are we now?
Phase II – Where do we want to be?
Phase III – How will we get there?
Phase I Working Papers

2. Working Papers – Real Estate (commercial,
office and industrial)
City of Campbell Vacancies
City of Campbell Real Estate Market Conditions

3. Working Paper – Sales Tax Review

4. Working Papers – Marketing
City of Campbell Social Media Presence
City of Campbell Website
City of Campbell Perceptions

5. Working Paper – Economic Scan

6. Working Paper – Assets, Challenges &
Opportunities
These reviews, through an economic development
lens, are documented in Working Papers as
background and reference documents for city staff,
Advisory and Sub-committees for further discussion
before moving forward. The Objective is to share
what the consulting team has observed.

Phase I includes research, review of documents and
plans and listening to stakeholders.

Existing conditions set the baseline from which the
consulting team starts to create the strategic economic development plan.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan WORKING PAPER:

Phase I Existing Conditions
Website Review
City of Campbell
Economic Development Strategic Plan
June 13, 2023
Working Papers are prepared for city review of project tasks. Working papers include task findings, opportunities/challenges, possible implications of findings and potential actions that could be taken. Intent is to review with staff to ensure Team is on track and did not miss existing policies, work efforts and/or plans.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Phase I – Existing Conditions
Website Review Overview
As part of Phase I Existing Conditions the Consulting Team is reviewing all marketing efforts and marketing channels, including websites which are a major channels for businesses and residence to access city information.

The website review includes a content review, technical review and usage including:
• Content/Structure
• Design/Usability
• Miscellaneous Observations
• Performance
• Mobile Experience
• Search Engine Optimization (SEO)
• ADA Compliance
• Analytics
The review contains numerous screen shots that help to assess the website as it relates to economic development, and the City’s brand story.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Website Review Summary
The City website is reviewed with three perspectives in mind:
1) From a user
2) From a site functionality perspectives (content and structure), and 3) From a marketing perspective.

User Perspective Observations: From a user perspective the review points to several opportunities to connect better with the city’s audience, such as,
• Utilizing the space above the fold on the site to connect with various stakeholders, such as, is the emergency text messaging so crucial to take up the amount of space it occupies? • The fold is where the bottom of the screen cuts off the visible area of the website. Everything you see is above the fold.
4 Desktop view – above the fold Laptop view – above the fold

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan • Understanding who the
city’s different audiences
are and creating
engagement with simple
click functionality to the
information increases
usage and visits.
• Connecting through
problem solution language
is one of the most
effective ways to connect
with users and why the
users are coming to the
site. In most cases, 90%
of the audiences are
coming to website
because they have
questions.

Example: City of Berkeley does a good job engaging and leading users with simple solutions based language and navigation with user search tied to a call to action statement. “How can we help you?” This directs the user to engage with your site to get answers. 5 Website Review Summary - continued

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Website Review Summary - continued
• The site appears to have old information that should be updated. 6 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Website Review Summary - continued
• Pages without content should be removed or hidden from public view. 7 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Website Review Summary - continued
• When migrating users to 3rd party pages the sites should be secured with a SSL certificate. Other wise users may not trust the pages where they are being directed. 8 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Website Review Summary, cont’d.

Site Functionality Observations:
• Mobile or responsive design should be implemented across all pages. (see more information and screen shots in Section Mobile, page 29) • Many pages displayed on mobile devices are difficult to navigate due to size or layout of content. (Section Mobile, pages 30-33)
• The Search Engine Optimization performance rank low for both desktop and mobile usage. (Section SEO, page 35-39)
• Site needs to be updated to maintain ADA compliance. (Section ADA, page 40) Marketing Observations:

Because the navigation and user experience in finding information is difficult, those visiting the site may get frustrated and leave your pages prior to finding the information needed.

Though this report shows the site needs improvement, there is still an abundance of information on the site for users. If the site were optimized for user experience with design, navigation and content in mind the site would function more efficiently as a useful tool for the user.

The remainder of the report are specific reviews of the website with notes and screen shots. 921.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Content/Structure
Insights on content (copy, images, links, etc.) and the architecture of how that content is presented.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Content/Structure
Review Methodology:

The structure of a site's content is a crucial part of the Users Experience (UX). The content should be well- organized and have an intuitive flow between pages.

A well-structured website:
• Makes it easy for users to find the information they're looking for and navigate between different pages • Helps to keep users on site longer, which can increase engagement and reduce users leaving the site • Makes it easier for users to complete desired actions, such as filling out a contact form • Improves website's visibility in search engine results pages, leading to more traffic and potential customers
General Comments:
• Re-evaluate the information architecture and prioritize content based on the city's mission and values • Reorganize the economic development section with core content and clear messaging to appeal to potential businesses
• Consider the users' language when presenting information, such as using more common terms instead of jargon
• Consider adding more clear Calls to Action for users to get in touch with the city. The “Form Center” is difficult to find, the link in the footer to the contact form has very poor visibility • https://www.campbellca.gov/FormCenter/Online-Forms-3/Contact-Us-Dropdown-48 The following pages include qualitative observations
about the content structure of the website.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Content/Structure (Cont'd)
• Utilize the space where you see “Text Your Zip Code”, referred to as Hero Space, on the homepage with more effective communication. This is the most effective space on the City’s website page.
• Remove arrow buttons as there is only one (1) slide in the carousel. • The “Text Your Zip Code” utilizes a majority of the space above the fold. Possibly there is another way to make it prominent without using so much space. 12 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Content/Structure (Cont'd)
• A thorough review of the website should be scheduled at least three times a year to remove old or obsolete information.
• Also, when there is a change of staff a search of the website should be made. 13 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Content/Structure (Cont'd)
• Branding does not appear to be consistent when sending users to external pages – different colors, fonts and icons are being used. 14 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Content/Structure (Cont'd)
• Navigation items could be condensed or subcategorized to simplify the interface and aid users in finding information
• If all information is necessary, an example of a well-done “mega menu” (multiple categories or subjects) is https://www.cityofsacramento.gov/ • Improve the visibility of important icons and links by removing them from the slideshow/carousel mode
• Considering relocating the quick link icons higher on the homepage for better visibility 15 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Content/Structure (Cont'd)
Some pages have no content
• About Campbell, Reserve
• The directory appears to be empty, but after further review a user must click on the search and enter a category to gain results.
• Also referenced are restaurants, bars, cafe’s & sweet treats which are .pdf files that link out to various restaurants and businesses but make the user work too hard to find information.

They are also not ADA compliant and in this format are cumbersome to keep current. It is important to be current and in pdf format the user may be concerned that the information is not up-to-date.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Content/Structure (Cont'd)
Interior page menus are not structured intuitively, making them difficult to follow. • For example, clicking on Fire Services from Staff Directory takes you to Home>Departments>Partner Agencies>Fire Services, not Staff Directory>Fire Services 17 21.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Content/Structure Summary
• By organizing information more intuitively and simplifying the navigation, the website can be easier for users to find information and engage with the site. • The City should define clear messaging and prioritize the website structure based on the City’s vision, mission, values and goals.
• Outdated information provides little value to users. Outdated information and data taking up value space and could cause confusion for various audiences. Less is more. 1821.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Design/Usability
Insights on visual and functional design
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Design/Usability
● All interior pages use the same banner image and page layout. ○ Creating some variation in the banner image and having a larger page title could help users identify what information they are seeking.
○ Keep the blue highlight on the top of page in the navigation when the user is on that page. For example:
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Design/Usability (Cont'd)
● Outdated user interfaces
○ Photo Gallery
○ Calendar
○ Search
● Antiquated designs can raise questions about the quality of services and lose customer trust and engagement.
● Button design inconsistencies
○ Consistent design in this area creates user familiarity, clear communication, and professionalism.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Design/Usability Summary
Improving the design would increase user trust and engagement by modernizing user interfaces, creating visual diversity with page banner images, utilizing larger page titles, and ensuring consistency in design elements. These enhancements would result in a more visually appealing, user-friendly, and reliable website experience for visitors.

Miscellaneous Observations
• Google Translate has low visibility down in the footer • Favicon does not match the Campbell Logo
• My Account
• This page says, "For a more interactive experience, please sign in." Clarify who the accounts are for, the general public or those who work for the city, and what they can expect from creating an account.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Performance
Insights on web page speed and best practices
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Performance (Desktop)
24 Lighthouse is an evaluation performed by Google Chrome that scores five (5) factors that contribute to Google Rankings and User experience:
1) Performance,
2) Accessibility,
3) Best Practices,
4) SEO, and
5) PWA.

For this review the focus is on the first three (3):
● Performance is judged by how much time it takes the webpage to load. ● Accessibility is judged by how accessible the website is. Especially for users who might require assistive technology.
● Best Practices, a terminology used by website developers, evaluates the website code, functions, and security.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Lighthouse Report (Desktop)
“Good” Scores are in the 90-100 range. Here are the scores for the Homepage:
25 The full report can be viewed: Campbell Lighthouse Report (Desktop)

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Performance Summary
Evaluating website performance is essential for optimizing the site for user experience and search engine rankings. Good Scores, according to Google, are in the 90-100 range.

The current scores for the homepage indicate room for improvement in all three categories 1) Performance (74),
2) Accessibility (88), and
3) Best Practices (67).

The full report provides recommended solutions for improving these scores. 2621.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Mobile
Insights on mobile web page performance and
responsive design for small device screens
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Lighthouse Report (Mobile)
28 “Good” Scores are in the 90-100 range. Here are the scores for the Homepage on a mobile device:

The mobile Lighthouse report indicates room for improvement in mobile features. The full report can be viewed: Campbell Lighthouse Report (Mobile) which also provides methods to enhance the mobile user experience and improve overall usability.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Responsive Design for Mobile Use
Websites with responsive design is
standard practice to ensure that
different device screen sizes can
access all web page content.

Nearly half of all users access the
web with mobile devices, which
should be heavily considered in the
design and functionality of the
website.

The following pages include
qualitative observations about the
mobile view of the website.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Responsive Design (Cont'd)
• Photo Gallery - Very confusing to
use; the menu and all other page
navigation disappears
Calendar - Clickable items are all
very small and could be difficult to
navigate
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Responsive Design (Cont'd)
• Form Center - Forms field line heights are too
small.
• Mobile users navigate by tapping. Clickable
items that are too small can make it difficult or
impossible to click for some users.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Responsive Design (Cont'd)
• On interior pages, the menu moves to the
bottom of the page. Consider reordering above
the main content
• Some interior page layouts are too narrow on
mobile resulting in difficult-to-read columns of
text
• https://www.campbellca.gov/1050/Permits-
Center
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Responsive Design (Cont'd)
• The homepage, when viewed on
tablet-sized screens, overflows in
the social media section.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Responsive Design Summary
Website optimization for mobile devices is vital due to the significant number of users accessing the web on mobile devices.

Implementing and maintaining responsive design practices ensures that web page content is accessible across different device (laptops, cellphones, tablets) screen sizes. 3421.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan SEO
Insights on Search Engine Optimization
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan SEO Overview
Search Engine Optimization is the process of making the website more visible and attractive to search engines like Google.

Optimizing the website for SEO increases the chances of attracting more visitors and potential customers.

The following pages on SEO include data collected from Semrush SEO Tools. • The SEO High Priority Issues are considered to be poor practices or erroneous and should be addressed. They can hurt your rankings considerably on search engines. • The SEO Warnings are bad practice that should be addressed but are not causing any major errors.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Website Health Overview
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan SEO High Priority Issues
• 3,044 redirect chains and loops
• 2,799 issues with duplicate title tags
• 2,721 pages have duplicate content issues
• 981 pages have duplicate meta descriptions
• 180 internal links are broken
• 94 structured data items are invalid
• 77 pages returned 404 status code
• Robots.txt file has format errors
• Very High Number of pages crawled
SEO Warnings
• 17,380* URLs with a temporary redirect
• 2,594 pages have low text-HTML ratio
• 1,673 pages don't have meta descriptions
• 444 pages don't have an h1 heading
• 174 pages don't have doctype declared
• 48 external links are broken
*This does not mean there are 17,000 pages on your website, but it is speculated that this number is a result of the redirect chains and loops mentioned in High Priority Issues. 3821.a
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan SEO Summary
Resolving SEO issues is vital for improving search engine rankings, user experience, and compliance with SEO guidelines.

The SEO audit identified critical issues like redirect chains, duplicate tags/content, broken links, and invalid structured data. Warnings include:
• Temporary redirects
• Low text-HTML ratio
• Missing meta descriptions/headers
• Broken external links
Addressing these concerns will boost website performance, visibility in search results, and overall crawl efficiency. Regular audits are advised to identify and resolve SEO issues, ensuring optimal website visibility.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan ADA Compliance
Web Content Accessibility Guidelines (WCAG) 2.1
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan ADA Compliance
Failure to address accessibility issues can put the
website at risk for accessibility lawsuits.

The site be audited regularly and have issues
addressed, as the website can become out of
compliance during content editing or the creation
of new pages or features.

The following includes some of the issues resulting
in non-compliance:
▪ Sliders/carousels* should not use autoplay
without an option of pausing
▪ All external links (links that take the user to a
new website) should open in a new tab
▪ Only the top level of navigation is navigable by
the keyboard. The tab key should allow a user
to step through every level of the menu.
▪ All clickable elements* should be labeled
appropriately for assistive technology (ie, ARIA
roles and labels)
▪ All images need to have alt attributes*
41 *Technical Definitions
Sliders and carousels are popular design elements for
displaying multiple content items within a limited space, offering an engaging and interactive way to showcase
information, promotions, or featured content on websites.

However, it's important to implement sliders/carousels with accessibility in mind, providing appropriate labels, navigation controls, and alternative content for users who may rely on assistive technologies or have difficulty interacting with dynamic elements.

Example of slider without option of pausing
(https://www.campbellca.gov/175/Bicycle-Pedestrian-
Advisory-Committee)
Clickable elements (ARIA roles and labels)
By using ARIA roles and labels, website developers can ensure that clickable elements (buttons, images, navigation) are more accessible to individuals using assistive technologies. Screen readers can read out the appropriate labels, allowing users to understand the purpose and function of each element, and navigate the website more efficiently.
alt attributes
Purpose of Alt Attributes: Alt attributes serve as textual alternatives to images. They provide a description or
explanation of the image's content, conveying its meaning and context to individuals who are visually impaired and rely on screen readers or other assistive technologies to access web content.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan ADA Compliance (Cont'd)
● Foreground Elements should have sufficient contrast with the background ○ For example, buttons, links, and directional arrows need high-contrast colors in relation to the background
○ There are several free tools that can identify what is considered sufficient contrast like WCAG 2.1 by WebAIM Contrast Checker
42 Examples of low contrast:

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan ADA Compliance Summary
• Addressing these issues is crucial to ensure ADA compliance and avoid potential accessibility lawsuits.
• Regular audits can identify and address new issues, as new content, pages, or features can introduce non-compliance.
• By addressing these issues, the website can provide a more inclusive and accessible experience for all users.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Google Analytics
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Google Analytics Report - 2022
45 Pageviews Unique Time on page Entrances Bounce Rate
Total views 1,025,280 784,434 2:50 465,830 20.63%
Highest ranking interest Pageviews
Recreation 271,226
Planning 95,563
Government 68,374
Public Works/Parks 33,288
Downtown and Events 25,868
Police & Fire 25,646
Alerts 22,169
Recreation Department – highest page views
Planning and government – next highest
page views
Public works/parks, downtown/events, and
Police and Fire third.

Remaining page views miscellaneous site
pages.
* For detailed Analytics reports see files in basecamp

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Google Analytics Report – 2023 YTD
46 Pageviews Unique Time on page Entrances Bounce Rate
Total views 416,456 319,219 2:49 191,965 52.01%
Highest ranking interest Pageviews
Recreation 113,357
Planning 27,332
Government 26,075
Public Works/Parks 14,226
Alerts 11,474
Police & Fire 9,711
Downtown and Events 5,615
Recreation Department – Highest page
views
Planning and government – next highest
pageviews
Public works/parks rank third
Alerts 4th and the Police/Fire and
Downtown/events
Remaining pageviews miscellaneous site
pages.
* For detailed Analytics reports see files in basecamp

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Prepared by Project Consulting Team:

Audrey Taylor
(530) 345-0364
www.chabinconcepts.com
Christine Firstenberg
925-381-8666
[email protected]
Thatch Moyle
(503) 539-1921
[email protected]
Brian Curtis
(530) 893-4623
[email protected]

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan TRANSMITTAL Economic Development Strategy Update
Phase I-Where are we now? Existing Conditions
The Economic Development Strategy approach
involves three-phases:

Phase I – Where are we now?
Phase II – Where do we want to be?
Phase III – How will we get there?
Phase I Working Papers

2. Working Papers – Real Estate (commercial,
office and industrial)
City of Campbell Vacancies
City of Campbell Real Estate Market
Conditions

3. Working Paper – Sales Tax Review

4. Working Papers – Marketing
City of Campbell Social Media Presence
City of Campbell Website
City of Campbell Perceptions

5. Working Paper – Economic Scan

Phase I includes research, document and plan
reviews and listening to stakeholders.

Existing conditions set the baseline from which the
consulting team starts to create the strategic economic development plan.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

WORKING PAPER
Phase I Existing Conditions
Perceptions
City of Campbell
Economic Development Strategic Plan
July 12, 2023
Working Papers are prepared for city review of project tasks. Working papers include task findings, opportunities/challenges, possible implications of findings and potential actions that could be taken. Intent is to review with staff to ensure Team is on track and did not miss existing policies, work efforts and/or plans.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Purpose of the Working Paper Perceptions
Three stakeholder groups were identified to provide feedback to the consulting groups and project, businesses, residents and real estate brokers. It is important from a marketing and and strategy standpoint to understand the perspectives of diverse, key, stakeholder groups to shape the marketing and branding architecture, and build the brand story and the marketing plan. Feedback was obtained from meetings, interviews and two surveys, resident and business on-line surveys posted on City website promoted by City, Chamber and Downtown Business Association.

1. Businesses play a pivotal role in shaping the economic landscape of any city. By gaining insights into their perceptions, challenges, and aspirations within Campbell, areas are identified where marketing efforts can provide targeted support. This knowledge will facilitate strategies that can retain existing businesses and attract new ones.

2. The residents of Campbell are also integral to the city's vibrancy and community spirit. Their perceptions and experiences significantly influence the overall appeal of the city as a place to live, work, and engage in social and commercial activities. Listening to their feedback, highlights any concerns or areas for improvement. By understanding their desires and values, marketing campaigns can highlight the city's unique attributes and create a strong sense of belonging among residents as well as foster a loyal and supportive community.

3. Real estate brokers, as key influencers in the real estate sector, offer valuable insights into the market dynamics, investment opportunities, and potential development in Campbell. By understanding their perspectives, marketing efforts can be aligned to attract investors, developers, and entrepreneurs who can contribute to the city's economic growth. Promoting the city's advantages and addressing any perceived challenges, helps to position Campbell as an attractive and profitable location for real estate investment and development.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

RESIDENTS
Campbell residents participated in a survey, May-June
2023 (full survey accompanies this working paper),
providing insights to their view of Campbell.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Resident Survey Overview
How long living in Campbell:
● 60% of the respondents have lived in the
area for 16 years or more, with a range of
16 to 25+ years.
● 26% of the respondents have lived in the
area for 6 to 15 years.
● The remaining percentage represents
residents whohave been in the area for 5
years or less.

Household Size:
● 84% of the respondents have 2 or more
adults living in their households.
● Among the households with adults above
the age of 18 the following was reported :
● 33% reported having one or two
children.
● 2.3% reported having three or more
children.
● The remaining percentage represents
households without adults above the
age of 18.

Employment Status:
● 75% of the respondents who are over the
age of 18 are employed.
● Over 60% of the employed residents work
outside of their homes.
● 48% of those who work from home are
classified as hybrid workers, meaning they
spend some percentage of their work week
in the office.

Work Location:
● 23% of those who work indicated that they
work in businesses within the City of
Campbell.
● The remaining 72% of the residents
responding, commute to jobs located
outside of Campbell. The most frequently
mentioned cities for commuting are:
● San Jose
● Santa Clara
● Sunnyvale
● Cupertino

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Education System:
• 74% of the parents surveyed have their
children attending public schools.

Satisfaction with Public Education:
• Among the parents who have children in
school (public schools):
• 87% expressed satisfaction to
happiness with the public education
system.

Frequency of Visiting Downtown Campbell:
• 257 respondents (55.4%) reported visiting
downtown Campbell one or more times per
week.
• 142 respondents (30.6%) reported visiting
1-3 times per month.
• 20 residents (4.3%) reported visiting 1-4
times per year.
• Only 15 respondents (3.2%) reported
almost never visiting downtown Campbell.

Activities in Downtown Campbell:
● The most popular activities for residents
visiting downtown Campbell are dining,
followed by attending farmers markets,
festivals, and events.
● Shopping, walking, visiting the library,
museum, and parks are also mentioned as
activities enjoyed in downtown Campbell.

Housing:
● 51% of respondents felt that there was
sufficient housing in Campbell with a
diverse selection and range of prices.
● When asked if the city needed more
affordable housing (rental or
ownership), 58.7% of respondents
answered yes.

Quality of Life:
● When asked about the quality of life in
Campbell, 87% of respondents
responded ranking a 4-5 with 5 best the
best, indicating a positive perception of
their quality of life.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Online Shopping and Other Retailers:
● When shopping (excluding
groceries), the majority of
respondents (48.2%) shop online.
● Other options for shopping
mentioned by respondents include
Valley Fair, Kirkwood, Downtown
Campbell, the Pruneyard, and
various other retailers.
● The retailers where they shop
include Costco, Target, Westgate,
Home Depot, Safeway, Whole
Foods, Amazon, Walmart, Trader
Joe's, and Lowe's.

Grocery Shopping:
● When asked where they shop for
groceries, 56% of respondents
indicated grocery stores in Campbell
as their preferred choice.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan The key takeaways from three open-ended questions focused on positive perceptions.

Question: Why did you choose to
live in Campbell?
• Small town feel
• Community-oriented
• Family connections
• Affordable housing
• Proximity to work
• Good schools
• Safety
• Convenient location
• Downtown and Pruneyard
Question: What do you like best
about Campbell?
• Small town feel
• Location
• Great neighborhoods
• Downtown area
• Weather
• Convenience
• Parks and trails
• Responsive city services
• Cultural and racial diversity
Question: Please share positive aspects of living in
Campbell.
• Sense of safety and security within the community.
• Appreciation for the small-town feel and community
atmosphere.
• Abundance of local events and festivals, keeping
Campbell on the cutting edge of local festivities.
• Availability of diverse dining options and culinary
experiences.
• Access to parks and recreational areas, fostering an
active and healthy lifestyle.
• Proximity to nature, particularly the Creek Trail and its scenic beauty.
• Pride in Campbell's historic significance and annual
history events.
• Appreciation for the shopping options and small
businesses in downtown Campbell.
• Overall cleanliness and well-maintained appearance of the city.
• Positive feedback on the city government's
responsiveness and accessibility.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan The key takeaways from two open-ended questions focused around areas that need improvement or cause for concern perceptions.

Question: What do you believe
might be lacking in Campbell?
• More or different shopping
options
• Music or performance venues in
the Downtown
• More community events
• Childcare services
• Art and cultural initiatives
• More activities/programs for
youth
• Affordable housing options
• Improved city leadership and
fairness for small businesses
• Pedestrian access to creek trails
• Enhanced public transportation
options
Question: Please share negative/concerning aspects on
living in Campbell.
• Concerns regarding the rising cost of living, particularly in housing prices.
• Growing issue of homelessness and related challenges
in the community.
• Desire for better enforcement of property maintenance, including yard upkeep and abandoned vehicles.
• Increased crime rates and the need for more
comprehensive strategies to address them.
• Frustration with the state of roads and the need for
road repairs and infrastructure improvements.
• Lack of affordable housing options, making it difficult for middle-class families to find suitable homes.
• Unhappiness with presence of transients and the impact on public spaces, particularly near the creek area.
• Limited diversity in restaurant choices and the desire for a wider range of cuisines.
• Concerns about the vacant storefronts and the need for revitalization in downtown Campbell.
• Perception of overcrowding and potential
overdevelopment, impacting the small-town feel.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

BUSINESSES
Campbell businesses participated in an online survey between May-June 2023 posted on City website and promoted by City, Chamber and Downtown Business Association. Full survey accompanies this working paper. Businesses also participated in interviews and meetings providing insights on their view of Campbell.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Businesses Survey Overview
Business Classifications:

Top classifications reported by the
businesses:
● Retail Trade
● Accommodation and Food Services
● Professional, Scientific and Technical
Services
● Health Care and Social Assistance
● Real Estate, Rental and Leasing,
Construction
Business Duration:
● 22.8% of the businesses have been
operating for 1-5 years.
● 38.7% of the businesses have been
operating for 6-19 years.
● 31.7% of the businesses have been
operating for 20 years or more.

Business Size:
● Over 80% of respondents had 10 or
fewer employees.

Employee Residence:
● 71.6% of employees working at these
businesses lived outside of Campbell.
● Sales Type:
● 75% of the businesses engage in
business-to-customer (B2C) sales.
● 52% of the businesses collect sales tax.

Online Sales:
● 45% of total sales for the businesses are
made through online channels.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Growth Expectations:
● 61% of businesses anticipate growth over the
next 2-3 years.
● 39% of businesses either have uncertain
growth prospects or do not expect any growth
in the near future.

City Engagement and Communication:
● When businesses were asked how they would
connect with the city if they had a problem
involving the city,
○ 38.6% mentioned using the city website
○ 42.9% indicated they would use
▪ Email
▪ Contact planning
▪ Contact city manager
▪ Visit the city
Services business would like to have from the City:
● The top requested services from the city were
related to assistance with permits and
regulatory issues, mentioned by 36.2% of
businesses.
● Technical services for startups and
entrepreneurs were requested by 21.7% of
businesses.

Business Assistance:
● When asked where they would go for business
assistance, 44.3% of businesses stated they
would rely on personal contacts.
● 26.1% of businesses were uncertain about
where to seek assistance.
● Other options mentioned by respondents
included
○ Chamber of Commerce
○ DCBA (Downtown Campbell Business
Association)
○ Accountants
○ SBDC (Small Business Development
Center)
○ The city itself.

Chamber of Commerce and DCBA Membership:
● 58% of businesses surveyed are not currently
members of the Chamber of Commerce or the
DCBA.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan The key takeaways from open-ended questions in the survey and in meetings with businesses regarding “Campbell as a place to do business”.

When asked about the factors that would
keep them doing business in Campbell,
respondents cited the following factors:
● 44.5% of businesses mentioned the
strategic location of Campbell as an
important factor.
● 26.3% of businesses highlighted the
customer base as a significant factor.
● 13.7% of businesses emphasized the
importance of safety in their decision to
continue operating in Campbell.

Other comments made during meetings:
• Small town culture
• City accessible to the business
community
• Supportive city and staff
• Police and safety
• Location, proximity to Silicon Valley
• Access and transportation
• Commercial rents still reasonable
• Stable community
• Diversity of businesses
• Developers and tenants can get to
someone one on one – unique to the
city.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Business feedback on areas of concern about doing business in the City of Campbell.
• Homelessness and related issues, increasing homeless population and its impact on their businesses, including safety concerns, harassment of customers and staff, and damage to properties.
• Parking-related problems including limited long-term parking availability, parking spaces being occupied by delivery drivers, parking exemptions given to specific businesses, and parking encroachment by neighboring businesses.
• Permitting and regulatory complexities, businesses expressed permit process complicated, costly, and time-consuming.
• Garbage and recycling services lack of garbage and recycling pickup on Saturdays, despite being expected in the contract, is a significant challenge for businesses generating more waste over the weekend.
• Some business owners have expressed difficulties in obtaining assistance from the city, or guidance and/or proper responses from city authorities regarding issues. • Several reported inadequate cellphone coverage, particularly on the west side of Campbell. • While not a predominant concern, some business owners perceive rental costs in Campbell to be higher compared to other locations.
• Other issues mentioned were California policies, Limitations during festivals and administrative complexities impacting prospective tenants.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

BROKERS &

DEVELOPERS
Perceptions from interviews and meetings.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan • Brokers reported that there is difficulty in getting
projects through the planning department.
• Lack of connectivity between departments of the
city. Communication on projects could streamline
processes.
• Past projects have caused brokers and developers
to pull back from City of Campbell as a place to do
business.
• Landlords use the city as an excuse to not allow
improvements to their properties.
• Communication has not been great with developers
and brokers.
• Not a feeling that Campbell is friendly towards
business. If it doesn’t fit into the planning box, the answer is first “No”. But they also commented - it
did not use to be unfriendly.
• Brokers are having to adapt their business interest
to spaces that will not spark AUP or CUP.

Real estate broker and developer feedback.
• Feel that every use needs an
Administrative Use Permit or Conditional
Use Permit
• “Time kills the deal”
• Industrial properties are full and city
has been good to work with.
• Would be helpful to have an
ombudsman to help potential projects
move smoothly through the city.
• City is understaffed. Great people that
work there, working hard, but lack of
capacity causes friction.
• Replace old planning processes with
digital planning for submitting and
reviewing plans

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Feedback from businesses and organizations not
located or doing business in Campbell regarding their
perceptions of Campbell.
• Rich history.
• Perceived to be very safe.
• Great community for families.
• Proximity to Silicon Valley is excellent.
• Pruneyard stands out their minds.
• Surrounding area/population shop in Campbell.
• Great location to pull workforce.
• Nice suburb of San Jose….very positive, small town, close in…..not alternative meeting destination, benefits from spill over from a broad draw that San Jose pulls for conventions.
• Proximity to San Jose State.
• Light rail a positive.
• Best known within the region, Silicon Valley, those businesses and individuals further out typically answer “have heard of it, know the basic location and that it has a good reputation as a community”, but not many details – have not investigated for a business location.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Prepared by Project Consulting Team:

Audrey Taylor
(530) 345-0364
www.chabinconcepts.com
Christine Firstenberg
925-381-8666
[email protected]
Thatch Moyle
(503) 539-1921
[email protected]
Brian Curtis
(530) 893-4623
[email protected]

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan TRANSMITT AL Economic Development Strategy Update
Phase I-Where are we now? Existing Conditions
The Economic Development Strategy approach
involves three-phases:

Phase I – Where are we now?
Phase II – Where do we want to be?
Phase III – How will we get there?
Phase I Working Papers

2. Working Papers – Real Estate (commercial,
office and industrial)
City of Campbell Vacancies
City of Campbell Real Estate Market
Conditions

3. Working Paper – Sales Tax Review

4. Working Papers – Marketing
City of Campbell Social Media Presence
City of Campbell Website
City of Campbell Perceptions

5. Working Paper – Economic Scan

6. Working Paper – Assets, Challenges &
Opportunities
These reviews, through an economic development
lens, are documented in Working Papers as
background and reference documents for City staff,
Advisory and Sub-committee information and further
discussion before moving forward. Objective is to
share what the consulting team is observing.

The Assets, Challenges and Opportunities will be a
focus of the Phase I Work Session to lead discussion
on priorities for the Economic Development
Strategy aligned with the City’s 2040 Economic
Development Element.

Existing conditions set the baseline from which the
consulting team starts to create the strategic economic development plan.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

WORKING PAPER
Phase I Existing Conditions
Assets, Challenges, Opportunities
City of Campbell
Economic Development Strategic Plan
July 20, 2023
Working Papers are prepared for City review of project tasks. Working papers include task findings, opportunities/challenges, possible implications of findings and potential actions that could be taken. Intent is to review with staff to ensure Team is on track and did not miss existing policies, work efforts and/or plans.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Summary
Campbell is a highly desirable
community in which to live, learn, work
and recreate.

It has maintained its small-town feel
while maturing into an attractive,
vibrant, and sustainable City that
celebrates its historical and architectural
heritage and embraces cultural diversity.

Campbell is a healthy community with
quiet and attractive residential
neighborhoods, a thriving downtown,
well maintained infrastructure, excellent
schools and recreational amenities
connected by a seamless network of
trails and paths.

The community is prosperous and
fiscally sound, offering abundant
employment opportunities to its diverse
and creative workforce through a
balanced mix of land uses that capitalize
on employment opportunities in the
Silicon Valley, while maintaining a strong
sense of community identity.

The primary objective for updating the Economic Development Strategic Plan is aligning future economic actions and programs with the City’s vision and general plan while engaging the business community in the refinement and implementation of a program.

The purpose of the Assets, Challenges and Opportunities working paper is to identify, with stakeholder input, the assets that serve as the basis for future opportunities and identify changes in trends, the impacts of disruptions (such as the pandemic) and other challenges that keep Campbell from being economically competitive in the region.

As detailed in the various working
papers, Phase I reviewed the City
from different economic perspectives,
with a focus on the City’s economic
drivers, physical assets (economic
centers, land and buildings) and
economic opportunities. This work
becomes the basis for strategy
development.

The Assets, Challenges & Opportunities matrices are a
culmination of stakeholder input and research themes
identified creating a springboard for the Phase I Work Session that leads to strategy development.

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan ASSETS
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Assets
Interviews – Focus
Groups
Surveys - Consultant
Observations
The greatest and most
valued asset is the City
itself:
• Small town feel
• Good place to raise a
family
• Sense of safety
• Location – proximity
to Silicon Valley
Campbell Economic Development Plan 5
Small town feel,
good place to raise
a family
Community-
oriented, quality of
life, sense of place
Sense of safety and
security – safe place
to live
Strong heritage,
cultural, diversity
valued
Proximity in the region
to Silicon Valley –
draws employees and
visitors, close to
customers
Good access to major
transportation routes
Good diversity in the
business mix, 50%
business and
industry, 50% retail
Companies
anticipating growth
2-3 years 61%*
Businesses rank
Campbell as a
good place to do
business*
Most economic drivers
recovered from the
pandemic
disruption** exceeding
2019 levels.
70% of the businesses
are small, less than 10
employees***,
supporting the “small-
town” feel
50% of Campbell
businesses*
operating for more
than 11 years.

Talent pipeline in age
group <19 and 30-39,
is growing and 40-49
age group is steady.

Medium age in line
with region
Growth in
population diversity
Low vacancy rates
in retail and
industrial
Dell and McGlincy
areas very desirable for
small entrepreneurial
businesses
Small niche
entrepreneurial tech
companies are
impactful ( sales tax
producers)
Downtown a key asset
to the City, well visited
and valued, low
vacancy and new
mixed-use projects.

Availability and
access to hiking
trails
Responsive City
services, staff and
police highly valued
Chamber and
Downtown Business
Association good
partners
*Source: Business Survey
**Source: HdL, visitor driver still lagging
but expected to recover by 2024
(national trend)
***Source: US Census, City Business
License

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

CHALLENGES
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Challenges
Interviews – Focus
Groups, Surveys -
Consultant Observations
The most prominent
challenge from all groups
was the:

1. Zoning and permitting
complexities
(particularly as it related
to time, cost and speed
to market).

2. Capacity and resources
at the City and partner
organizations limit
proactivity and require
more effort.

3. Limited sites and space
available for commercial
and industrial
investment and
expansion.

Campbell Economic Development Plan 7
Permitting and
zoning
complexities
(time element)
Resources are
strained (human and
financial) City and
partner organizations
Developable land
capacity is
constrained by
physical build out of
community
Recruiting
employees difficult
for business*
Keeping Downtown
vibrant and
refreshed, starting
to wear
Increasing
homeless and
perceived safety
issues*
Parking-related
problems all area of
the City*
Trash and
recycling services*
Limited
commercial &
industrial space
Vacant spaces not
up to code for new
tenants
No developable
vacant site for new
higher profile retail
Flex & R/D space
– very limited
High vacancy rate
office (regional and
national issue)
Limited office
development, soft
market for office
(national-global
trend)
Population growth
slightly declining and
aging (a statewide
trend)
High cost of doing
business and cost of
housing (regional
issue)
Shopping online
vs. locally (48%)**
Childcare
affordability and
availability**
Adequate affordable
housing * **
*Source: Business Survey, Interviews
**Source: Resident Survey

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

OPPORTUNITIES
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Opportunities
Interviews - Meetings
Surveys - Consultant
Observations
There are several opportunities
the City can move forward with,
but the outcome is dependent
on available resources
The determination of priority
opportunities should align with
goals in the newly adopted
Economic Development
Element of the General Plan.

Priorities should also address
major challenges identified by
businesses:

1. Zoning & permitting delays
Note: The economic
development advisory &
Subcommittee will prioritize
opportunities at the Jully 27
Work Session.

Campbell Economic Development Plan 9
Streamlining permitting
and zoning- shorten time
delays would be a
competitive advantage
Position and promote the
City’s #1 asset within the
region – a quality
community with a small
town feel.

Focus on existing
business who have
growth potential
Leverage opportunities
with Levi stadium events,
i.e., Superbowl 2026
Support local-small
business (financial &
technical assistance)
Start “live local”
campaign
Downtown strategy to
continually refresh and
support vibrancy
Is a property-based
business improvement
district feasible?
Reuse of a one large
vacant site-former
Fry’s Electronics.

Work closely with
brokers on retail vacant
spaces and mix
Leverage the small growth
set of technology
companies that appear to
be incubated in Campbell
Stem increasing concerns
about homelessness and
safety, a stronger police
presence in all commercial
and business/industry
locations
Leverage DCBA &
Chamber partnership to
serve businesses and
create destinations i.e.,
music, events
Invest in infrastructure
improvements and
beautification, economic
centers
Enhance communications
with businesses

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

BACKGROUND & DETAILS
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Phase I Existing Conditions Process
• Phase I defines existing conditions from which the consulting team, with input from City and stakeholders, will create the City’s economic development strategy and implementation plan. • The research covers various economic conditions of the City – including real estate, land use, zoning, plans, availability buildings, demographics, economic indicators, revenue, marketing (delivered as nine working papers.
• The consulting team was on-site to research real estate assets, economic centers (shopping centers, business/industry centers and vacant properties) as well as transportation access and market conditions.
• The second on-site visit expanded on the initial visit with deeper assessment of economic centers including stakeholder meetings with Council, City staff, Chamber of Commerce, Downtown Business Association and the Economic Development Advisory Committee. • With a focus on economic drivers, the City was mapped into Economic Centers, areas where business and employment are concentrated, to understand the dynamics of each economic center. • With the recent adoption of the Housing Element, those commercial real estate properties identified for conversion to housing were also mapped.
• At City’s request, both a resident and business survey were conducted, distributed by the City, Chamber and Downtown Campbell Business Association (Working Paper – Perceptions). • All of information and data gathered culminate in the Assets, Challenges and Opportunities matrices in this Working Paper.
• Given the City has just completed and adopted the 2040 General Plan, which also included community input, many of the Assets, Challenges and Opportunities are similar to those opinions and comments.
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Guiding Documents
The newly adopted General Plan 2040 vision,
objectives and economic development element are
guiding documents for creating the updated
Economic Development Strategic Plan.

These documents are recent and highlight many
economic development goals, objectives and
actions recently discussed with the community and
Council. The intent during the Phase I Work
Session is to review, prioritize and integrate goals,
objectives and actions with the Economic
Development Strategy.

The following pages highlight excerpts from this
document that directly relate to economic
development.
12 • Vision and Objectives, Pg IN-5
• Economic Development Element Pg ED-1

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Vision – General Plan 2040 Role of Economic Development In 2040, Campbell is a highly desirable community
to live, learn, work and recreate.

It has maintained its small-town feel while
maturing into an attractive, vibrant, and
sustainable City that celebrates its historical and
architectural heritage and embraces cultural
diversity.

Campbell is a healthy community with quiet and
attractive residential neighborhoods, a thriving
downtown, well maintained infrastructure,
excellent schools and recreational amenities
connected by a seamless network of trails and
paths.

The community is prosperous and fiscally sound,
offering abundant employment opportunities to
its diverse and creative workforce through a
balanced mix of land uses that capitalize on
employment opportunities in the Silicon Valley,
while maintaining a strong sense of community
identity.

Highlighted words/phrases in Vision
Statement that relate to economic
development work/tasks:

Marketing
Incorporate in Brand Story
Recognize cultural diversity in local
businesses
Maintaining and refreshing downtown
Leverage the greater region
Marketing – community identity – Campbell
DNA
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Objectives – General Plan 2040 Economic Development Role The following are specific Objectives listed in the General Plan aligned with an economic development role:
#2 Address issues and concerns identified by City residents, businesses, decision-makers, and other stakeholders;
#3 Capitalize on Campbell’s location within the Silicon Valley to provide high tech jobs that enable Campbell to be a
live/work community while maintaining Campbell’s small
town community identity;
#4 Protect and enhance Campbell community character, and sense of community;
#6 Proactively plan for and accommodate local and regional growth in a balanced and sustainable manner, with an
emphasis on maintaining Campbell’s unique character;
#8 Attract and retain businesses and industries that provide high-quality and high-paying jobs;
#11 Support and enhance Campbell’s small business
community to sustain a vibrant City with a strong
downtown core and community identity;
#14 Address emerging transportation, housing, and
employment trends;
#16 Encourage mixed use corridors that promote vibrant
commercial and residential areas.

Permitting & business assistance
Encourage high paying jobs to locate
Marketing – community identity
Marketing – sense of community
Marketing – unique character
Focus on existing businesses
Small business services
Downtown business mix
Marketing – community identity
Watch trends….i.e. office vacancy,
economic indicators with a regional context
Work with existing centers and new
developments – business friendly
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan 2040 General Plan
Economic Development Element Goals
Actions listed in Economic
Development Element, 2040
General Plan, pg. ED-1 – ED-
15 Goal ED-1 Economic Development Ensure that the City’s general plan helps sustain a healthy, balanced economy that fosters strong economic growth and quality of life for all residents.
10 Action Items
Goal ED-2 Business Retention, Expansion & Promotion Facilitate retention and expansion of businesses that support the goals and vision of the City, provide employment opportunities for Campbell residents, and help sustain a strong economy.
6 Action Items
Goal ED-3 Business Diversification Attract and Retain companies and industries to Campbell that provide diversity in the City’s economic base and jobs that reduce out-commuting.
6 Action Items
Goal ED-4 Strengthen the economic base of the City through the installation of needed capital improvements that help make Campbell a competitive business location.
7 Action Items
Goal ED-5 Key Corridors Encourage new development in key areas that provide high-quality work locations for existing and new businesses.
6 Action Items
Goal ED-6 Downtown Encourage and support Downtown as the heart of Campbell’s cultural and civic life, and a place where residents, workers, and visitors can share in the heritage, vibrancy, and vitality, of Campbell.
7 Action Items
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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan Prepared by Project Consulting Team:

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Attachment: Existing Conditions Working Papers (Economic Development Strategy Plan

City of Campbell
Economic Development Strategy

Phase I – Existing Conditions - Where are we now?

May-June 2023 – Survey Results
Two surveys conducted to provide feedback from
two City of Campbell stakeholder groups – residents
and businesses.

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Attachment: City of Campbell Business Resident Survey May-Jun 2023 (Economic Development Strategy Plan Update) City of Campbell . Resident Survey . May/June 2023 1 | P a g e

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Attachment: City of Campbell Business Resident Survey May-Jun 2023 (Economic Development Strategy Plan Update) City of Campbell . Business Survey . May/June 2023 1 | P a g e

As part of Stakeholder Engagement to gather input and feedback from Campbell businesses for the Economic Development strategy a business survey was conducted. The business survey was open for responses from 5/25/2023 - 6/19/2023. The city distributed the survey link through social channels and email lists. The survey link was also sent out by the Chamber of Commerce and the Downtown Business Association to their mailing lists.

A total of 88 responses were received from various business types. The infor mation gathered included business demographics, business operations and open-ended questions regarding the Campbell business climate.

The information gathered from the survey is being used to inform the strategic planning process and will be incorporated in Phase I, Working Papers. Following are responses to survey questions.

Business Classifications Responses
Retail Trade 16
Professional, Scientific, and Technical Services 14
Health Care and Social Assistance 9
Accommodation and Food Services 9
Real Estate and Rental and Leasing 7
Construction 6
Finance and Insurance 3
Beauty 2
Education Services 2
Information 2
Manufacturing 2
Marketing Services 2
Religious 2
Other 12
TOTAL 88

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Attachment: City of Campbell Business Resident Survey May-Jun 2023 (Economic Development Strategy Plan Update) City of Campbell . Business Survey . May/June 2023 2 | P a g e

How long have you been in business in Campbell?

Where is your business located in Campbell?
Campbell Ave 11 Creekside Way 1
Downtown Campbell 11 Dillon Ave 1
E Campbell Ave 9 Budd Avenue 1
Hamilton Ave 8 First Street 1
Pruneyard 6 Friar Way 1
Bascom Ave 6 Los Gatos 1
McGlincy Lane 5 La Vonne Dr 1
Winchester Blvd 4 Lovell Ave 1
Home Office 3 McBain Ave. 1
Sunnyoaks Ave 3 Railway Ave 1
Camden Ave 2 Rincon Ave 1
Dell Avenue 2 Salmar Ave 1
Sharp Ave 1
Third St. 1
W. Campbell Ave 1

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Attachment: City of Campbell Business Resident Survey May-Jun 2023 (Economic Development Strategy Plan Update) City of Campbell . Business Survey . May/June 2023 3 | P a g e

How many employees do you have at your business in Campbell?

What percentage of your employees live in Campbell?

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Does your business collect sales tax?

Are your transactions retail storefront or business to business sales?

Business to Business
Business to Consumer

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What percentage of your sales are from online transactions?

How do you expect your business to perform in the next 2 to 3 years?

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How would you rate the City of Campbell as a place to do business on a scale from 1 - 5, with 5 being the best?

HIGH SATISFACTION RATING
75% of the respondents ranked Campbell
as a good place to do business.

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Attachment: City of Campbell Business Resident Survey May-Jun 2023 (Economic Development Strategy Plan Update) City of Campbell . Business Survey . May/June 2023 7 | P a g e

Do you have any challenges in doing business in the City of Campbell?

What are some of the challenges facing businesses in Campbell? This question was an open-ended question with the following a summary of those responses received the most (actual responses are available in the raw dat a provided to the City) . T he primary challenges mentioned by business owners in Campbell are related to homelessness and its impact on safety and business operations, parking issues, complexities and costs associate d with permits and regulations, inadequate garbage and recycling services, COVID -19 enforcement, communication difficulties, cellular network coverage, rental costs, California policies, and various miscellaneous issues. • Homelessness and related issues: Bu siness owners are frustrated with the increasing homeless population and its impact on their businesses, including safety concerns, harassment of customers and staff, and damage to properties.
• Parking-related problems: Issues include limited long -term park ing availability, parking spaces being occupied by delivery drivers, parking exemptions given to specific businesses, and parking encroachment by neighboring businesses.
• Permitting and regulatory complexities: Business owners find the permit process compli cated, costly, and time -consuming, which discourages prospective tenants and affects business operations.
• Garbage and recycling services: The lack of garbage and recycling pickup on Saturdays, despite being expected in the contract, is a significant challe nge for businesses generating more waste over the weekend.
• COVID-19 enforcement: Enforcement of COVID-19 regulations has been mentioned as a challenge, likely due to the evolving nature of the pandemic and its impact on businesses. • Communication and respon siveness: Some business owners have expressed difficulties in obtaining assistance, guidance, or proper responses from city authorities regarding issues such as dumping, cleaning, and direction on problem-solving.

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• Cellular network coverage: Several busines s owners report inadequate cellphone coverage, particularly on the west side of Campbell.
• Rental costs: While not a predominant concern, some business owners perceive rental costs in Campbell to be higher compared to other locations.
• California policies: A few business owners attribute the challenges of doing business to broader California policies rather than specific issues in Campbell. • Miscellaneous: Other challenges mentioned include limitations during festivals, perception issues impacting job preference, and administrative complexities impacting prospective tenants.

What key factors about Campbell keep you here or would be attractive for other businesses?

Safety factors relates to Campbell as
being a safe place to do business.

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If your business had a problem involving the City, which option would you choose as your first point of contact?

If you needed business assistance (business counseling, financing, marketing/promotions) where would you go?

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What services should be implemented by the City of Campbell?

Preselected responses, based on input from stakeholder interviews, multiple choice, with an option to add any other service that might be desire.

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Do you belong to the Chamber of Commerce or the DCBA? Why or Why Not?

In what other ways do you believe the City could provide assistance to your business?
Based on an open ended question, the key areas most noted where the City could provide assistance to businesses include maintaining a strong police presence, investing in infrastructu re improvements and beautification, fostering a supportive and communicative attitude, streamlining permitting processes, promoting economic development, and providing accessibility and education to businesses. • Enhanced police presence: Several respondents mentioned the importance of maintaining a strong police presence to deter crime and ensure the safety of businesses and customers. This includes increasing police patrols, particularly in areas with high homeless populations. • Infrastructure imp rovements and beautification: The respondents highlighted the need for beautification projects, such as installing pole banners, flower beds, and regular sidewalk pressure washing. These improvements contribute to creating an attractive environment for bus inesses and customers.
• Supportive attitude and improved communication: Business owners expressed a desire for a more supportive and approachable attitude from city employees. They want city officials to be advocates for businesses, provide updates on city developments, and help find solutions to challenges faced by businesses.
• Streamlined processes: Many respondents mentioned the need for improved access to permitting processes and reduced costs and timeframes for securing permits. They suggested reorganizi ng communication, updating the website, and providing clear guidelines on requirements for doing business in the city.
• Economic development: Some respondents suggested filling vacant businesses with new ones to attract more people and generate additional revenue for the city. They also mentioned the need for mentoring services and funding assistance to support small businesses.

Reasons for joining:
● Supportive and helpful local hub
● Advocacy and community involvement
● Marketing and advertising opportunities
● Networking and connections
● Resources and knowledge sharing
Reasons against joining:
● Lack of perceived benefits
● Cost of membership
● Time constraints
● Online or non-local business focus
● Negative past experiences or perceived lack of
impact

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• Accessibility and education: Business owners expressed a desire for better understanding of property taxes and city requirements, a s well as education on how to work productively with the city administration.

The raw survey data sheets are available at the City of Campbell, Economic Development Office.

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Attachment: City of Campbell Business Resident Survey May-Jun 2023 (Economic Development Strategy Plan Update) City
Council
Report
TITLE: Accept Resignations of Renee Small and Matt Schroeder from the Bicycle and Pedestrian Advisory Committee (BPAC)

RECOMMENDED ACTION
That the City Council accept the resignation of Renee Small and Matt Schroeder from the Bicycle and Pedestrian Advisory Committee and direct the City Clerk to advertise the Notice of Unscheduled Vacancy for the remainder of the current term and a full term, with a term expiration of August 2028.

BACKGROUND
In 1994, the City of Campbell’s Bicycle Advisory Committee (BAC) was established in response to a Metropolitan Transportation Commission (MTC) requirement that cities establish bicycle advisory committees in or der to remain eligible to receive Transportation Development Act (TDA) funds. On November 1, 2010, the City Council adopted Resolution No. 11229 renaming the Campbell 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
Campbell’s Bicycle and Pedestrian Advisory Committee Member Renee Small notified staff of her intent to resign her Committee seat effective August 17, 2023. Matt Schroeder notified staff of his intent to resign his Committee seat effective September 21, 2023. Attached are letters from Committee Members Small and Schroede r stating their resignations.

Both Committee members Small and Schroeder have terms expiring in August, 2024 .

Given that recent recruitment efforts have needed to be extended in order to receive enough applications to fill vacant positions, it is recomme nded that the City Council accept the resignation and direct the City Clerk to prepare the Notice of the Unscheduled Vacancy for the remainder of the current term and a full term , with a term expiration of August 2028.

FISCAL IMPACT
Item: 22
Category: COUNCIL COMMITTEE

REPORTS
Meeting Date: September 5, 2023
22 Packet Pg. 555
Acceptance of Resignations from the BPAC Page 2 of 2
There is no fiscal impact associated with this action.

Prepared by:

Andrea Sanders, City Clerk
Approved by:

Brian Loventhal, City Manager
Attachment:
a. BPAC Resignation Letter (Schroeder)
b. BPAC resignation (Small)
22 Packet Pg. 556

Mr. Mathew Jue
Traﬃc Engineer
Bicycle and Pedestrian Advisory Commitee
City of Campbell
70 N 1st St, Campbell, CA 95008
Dear Mr. Mathew Jue,
I am wri�ng to formally resign from my posi�on as a member of the Bicycle and Pedestrian Advisory Commitee for the City of Campbell, eﬀec�ve September 21, 2023.

I would like to express my sincere gra�tude to you, Todd, the commitee members, and the City of Campbell for providing me with such a rewarding experience. I genuinely hope to see the con�nued success of City projects and programs. While I may not be a commitee member in an oﬃcial capacity moving forward, please know that I remain a staunch advocate for the advancement of bicycle and pedestrian infrastructure in our community.

Thank you once again for the opportunity and I look forward to the possibility of collabora�ng again in the future.

Warm regards,
Mat Schroeder

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Attachment: BPAC Resignation Letter (Schroeder) (Acceptance of Resignations from the BPAC) 1 Matthew Jue
From: Renee Small
Sent: Thursday, August 17, 2023 12:25 PM
To: Matthew Jue
Cc: Todd Capurso
Subject: Re: BPAC Resignation
WARNING: This email originated from an external sende r! Please do not open attachments or click on links unless you are certain it is legitimate.

Hello Matthew,
Thanks for the quick response on my inquiry. I am truly disappointed to be unable to continue with the BPAC. I learned a great deal about what is required to keep bike riders and pedestrians safe in Campbell and I believe I have added value to the committee during my stay.

There have been some unexpected changes in my circumstances and I don't want to be distracted while preparing for and attending our bimonthly meetings. The BPAC is a valuable resource for the City and I wish you continued progress.

I will resign effective immediately, today, August 17, 2023.

Respectfully,
Renee Small

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Attachment: BPAC resignation (Small) (Acceptance of Resignations from the BPAC)

City
Council
Report

TITLE: Council Committee Reports

RECOMMENDED ACTION

That the City Council report on activities from their committee assignments.

DISCUSSION
This is t he section of the City Council Agenda that allows the City Councilmembers to report on items of interest and the work of City Council Subcommittees.

MAYOR BYBEE
Cities Association of Santa Clara County:

Board Representative
Legislative Action Committee and City Selection Committee City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Finance Subcommittee
Friends of the Heritage Theater Liaison
Legislative Subcommittee
Silicon Valley Animal Control Authority Board (SVACA)
West Valley Mayors and Managers

VICE MAYOR LANDRY
Advisory Commissioner Appointment Interview Subcommittee City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Education Subcommittee
Economic Development Subcommittee
Santa Clara Valley Water District County Water Commission Santa Clara County Library District JPA Board of Directors

West Valley Clean Water JPA (Alt.)
West Valley Solid Waste Authority JPA (Alt.)
West Valley Mayors and Managers (Alt.)

Item: 23
Category: COUNCIL COMMITTEE

REPORTS
Meeting Date: September 5, 2023
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Council Committee Reports Page 2 of 3

COUNCILMEMBER FURTADO
Advisory Commissioner Appointment Interview Committee
DCBA Liaison
Emergency Operational Area Council (EOAC)
Santa Clara County Emergency Operational Council (EOAC)** Silicon Valley Regional Interoperability Authority (SVRIA) West Valley Clean Water JPA
West Valley Sanitation District
West Valley Solid Waste Authority JPA

Association of Bay Area Governments (Alt.)
Silicon Valley Animal Control Authority Board (SVACA) (Alt.) Valley Transportation Authority Policy Advisory Committee (Alt.)

COUNCILMEMBER LOPEZ:

Association of Bay Area Governments
Bay Area Quality Management District Board of Directors** Economic Development Subcommittee
Finance Subcommittee
League of Cities Peninsula Division Executive Committee** Legislative Subcommittee
Santa Clara County Housing and Community Development Advisory Committee Silicon Valley Clean Energy Finance and Audit Committee Valley Transportation Authority Board of Directors**

Campbell Historical Museum & Ainsley House Foundation Liaison (Alt.) Cities Association of Santa Clara County:

Board Representative (Alt.)
Legislative Action Committee and City Selection Committee (Alt.) Friends of the Heritage Theater Liaison (Alt.)
Santa Clara Valley Water District: County Water Commission (Alt.) Silicon Valley Clean Energy JPA Board of Directors (Alt.) West Valley Sanitation District (Alt.)

COUNCILMEMBER SCOZZOLA
Campbell Historical Museum & Ainsley House Foundation Liaison Education Subcommittee
Silicon Valley Clean Energy JPA Board of Directors
Valley Transportation Authority Policy Advisory Board

DCBA Liaison (Alt.)
Santa Clara County Housing and Community Development Advisory Committee (Alt.) Santa Clara County Library District JPA Board of Directors (Alt.)

**appointed by other agencies

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Council Committee Reports Page 3 of 3
Prepared by:

Kristen Epolite, Deputy City Clerk
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Campbell City CouncilSeptember 5, 2023

Campbell City Council
September 5, 2023