Agenda — Campbell City Council, June 4, 2024 (part 1 of 2)

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

NOTE: This City Council Regular meeting will be conducted in person as well as telecommunication and is compliant with provisions of the Brown Act.

The City Council meeting will be live -streamed on Channel 26 or Channel 88, the City's website and on YouTube https://www.youtube.com/user/CityofCampbell for those who only wish to view the meeting.

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

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

REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, June 4, 2024 – 7:00 p.m.

City Hall Council Chamber – 70 N. First Street

CALL TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

SPECIAL PRESENTATIONS AND PROCLAMATIONS

COMMUNICATIONS AND PETITIONS

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

COUNCIL ANNOUNCEMENTS

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

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

1. Minutes of City Council Executive Session Meeting of May 21, 2024 Recommended Action: Approve the executive session meeting minutes of May 21, 2024.

2. Minutes of City Council Regular Meeting of May 21, 2024 Recommended Action: Approve the regular meeting minutes of May 21, 2024.

3. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $630,365.65.

4. Monthly Investment Transactions Report (April 2024)
Recommended Action: That the City Council review and accept the Monthly Investment Transactions Report for April 2024.

5. Monthly Treasurer's Report (April 2024)
Recommended Action: That the City Council review and accept the Monthly Treasurer’s Report for the month ended April 30, 2024.

6. Resolution Authorizing Contract with the County of Santa Clara to Provide a Senior Nutrition Program for Fiscal Year 2024 -25 (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution approving a contract and authorizing the City Manager to execute the contract with the County of Santa Clara for the provision of congregate meal services and providing funding for Campbell's Senior Nutrition Program for Fiscal Year 2024 -

25. 7. Agreement with MoonChef, LLC to Provide Catered Meals for the Senior Nutrition Program for Fiscal Year 2024-25 (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a Resolution approving an agreement and authorizing the City Manager to execute the agreement with MoonChef, LLC to provide catered meals for the Senior Nutrition Program during Fiscal Year 2024-25.

8. Ordinance 2307 Adopting FY 2025 Business License Tax Rates (Ordinance/Roll Call Vote)
Recommended Action: That the City Council take second reading to adopt Ordinance 2307 amending provisions of the Campbell Municipal Code to revise the business license tax rates, effective in Fiscal Year (FY) 2025.

9. Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention, Lighting and Landscaping District LLA -1, Fiscal Year (FY) 2024 - 25 and Set Time and Place for Public Hearing (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution preliminarily approving the Engineer’s Report for the annual levy and collection of

assessments for City of Campbell Lighting District LLA-1 for Fiscal Year 2024-25; and adopt a resolution declaring Council’s intention to levy and collect assessments within the City of Campbell Lighting District LLA -1 for (FY) 2024-25 and setting forth the time and place for a required Public Hearing.

10. Approval of Authorization Agreement Between the City of Campbell and the West Valley Solid Waste Management Authority and Authorization for City Manager to Sign the Authorization Agreement (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution approving an Authorization Agreement between the City and the West Valley Solid Waste Management Authority (WVSWMA) for the WVSWMA to enter into a Countywide Food Recovery Program and authorizing the City Manager to execute said agreement and future extensions and amendments.

11. Mobile Home Rent Stabilization Tri -Partite Agreement (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution approving a Tri - Partite Mobile Home Rent Stabilization Agreement and authorizing the City Manager to execute the agreement between Timber Cove Mobile Home Community Joint Venture dba Timber Cove Mobile Home Community, the Timber Cove Homeowners Association, and the City of Campbell.

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

12. Introduction of Proposed Fiscal Year (FY) 2025 Operating Budget and 2025 - 2029 Five-Year Capital Improvement Plan (CIP)
Recommended Action: That the City Council review the Proposed Fiscal Year (FY) 2025 Operating Budget and 2025 -2029 Capital Improvement Plan (CIP) as presented; provide direction to staff to proceed with finalizing the budget; and establish June 18, 2024 as the date for a public hearing and adoption of the FY 2025 Operating Budget and CIP, as well as the Gann Appropriations Limit.

NEW BUSINESS

13. Authorization to Extend the Existing Master Equity Lease Agreement with Enterprise Fleet Management for the Replacement of City Vehicles and Approve the Issuance of Subsequent Purchase Orders for Their Associated Leasing Costs (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution authorizing: 1) an extension of the existing Master Equity Lease Agreement with Enterprise Fleet Management (Enterprise) for the replacement of City vehicles; 2) the issuance of a purchase order with Enterprise, in the amount of $193,000, for FY 2024/25 as programmed in the Public Works - Vehicle and Equipment Maintenance Operating Budget; 3) the issuance of subsequent purchase orders over four (4)

additional years, in the total amount of up to $928,000; and 4) the City Manager to execute the individual lease agreements for additional vehicles replaced through Enterprise and as specified in Campbell Municipal Code Section

3.20.100.

14. Heritage Theatre General Fund Policy (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution eliminating the $200,000 General Fund subsidy limit for the Heritage Theatre operations effective FY25.

UNFINISHED BUSINESS

COUNCIL COMMITTEE REPORTS

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

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

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

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

CITY COUNCIL EXECUTIVE SESSION
Tuesday, May 21, 2024 – 6:30 PM
Doetsch Conference Room
70 N. First Street, Campbell, California

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

CALL TO ORDER
The City Council of the City of Campbell convened this day in the special meeting place, the Doetsch Conference Room, 70 N. First Street, Campbell, California.

ROLL CALL
Attendee Name Title Status
Susan M. Landry Mayor Present
Sergio Lopez Vice Mayor Present
Elliot Scozzola Councilmember Present
Dan Furtado Councilmember Present
Anne Bybee Councilmember Present

PUBLIC COMMENT
There was no public comment.

MOVE INTO CLOSED EXECUTIVE SESSION
A. Personnel

B. Litigation - CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION (Paragraph (1) of subdivision (d) of California Government Code Section 54956.9) Name of Case : Jane Doe v. City of Campbell Police Department; Santa Clara County Superior Court Case No. 24CV430014

C. Real Property

D. Labor Negotiations

1 Packet Pg. 5
Minutes Acceptance: Minutes of May 21, 2024 6:30 PM (CONSENT CALENDAR)

Minutes of May 21, 2024 City Council Meeting Page 2
The City Council met in Executive Session to discuss item B – Litigation. City Attorney Seligmann, and City Manager Loventhal were in attendance. Police Chief Berg participated virtually via Zoom.

ADJOURN
Mayor Landry adjourned the meeting at 6:50 p.m.

APPROVED:

ATTEST:

Susan M. Landry, Mayor

Andrea Sanders, City Clerk

1 Packet Pg. 6
Minutes Acceptance: Minutes of May 21, 2024 6:30 PM (CONSENT CALENDAR)

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

REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, May 21, 2024 7:00 p.m.

City Hall Council Chamber – 70 N. First Street

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

This meeting was recorded and can be viewed in its entirety at www.campbellca.gov/agendacenter.

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

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Public Works Director Todd Capurso in recognition of National Public Works Weeks.

Mayor Landry presented Director Capurso with a Certificate of Appreciation for leading the Pledge of Allegiance.

SPECIAL PRESENTATIONS AND PROCLAMATIONS

1. Receive a Presentation from Valley Water on the Valley Water's Water Supply Master Plan
Recommended Action: That the City Council Receive a Presentation from Director Jim Beall, District 4, Valley Water Board of Directors, on the Water Supply Master Plan.

2 Packet Pg. 7
Minutes Acceptance: Minutes of May 21, 2024 7:00 PM (CONSENT CALENDAR)

Minutes of May 21, 2024 City Council Meeting Page 2
Valley Water District 4 Director Beall gave a presentation on Valley Water’s Water Supply Master Plan. He discussed future goals, projects under consideration, and water supply Master Plan strategies and schedule.

The Council accepted the report and asked general questions related to the presentation.

Councilmembers thanked Director Beall for attending the meeting and his presentation.

2. 2023-2024 Campbell Youth Commission Update
Recommended Action: That the City Council receive an update from the Campbell Youth Commission.

Recreation Program Coordinator and Youth Commission Staff Liaison Gracey Ferrel, introduced Youth Commission Vice Chair Ayaan Raza and Secretary Maya Yamagishi.

The Commissioners recapped their events and accomplishments related to the five Youth Commission Subcommittees of Safety, Physical Health, Mental Wellness, Environmental Sustainability and Career and Educational Support.

Accomplishments included Fun Run support, Storytime with Santa, a Shoe Drive, Teen Wellness Day, and a Job Fair.

The City Council thanked the Youth Commission for their presentation and expressed their appreciation for their service to the community.

3. Proclamation Declaring the Week of May 19 - 25, 2024, National Public Works Week
Recommended Action: That the City Council proclaim the week of May 19 -25, 2024, as National Public Works Week for the City of Campbell.

Mayor Landry proclaimed the week of May 19-25, 2024 as National Public Works Week for the City of Campbell and presented Public Works staff Director Todd Capurso, Superintendent Ron Taormina and Environmental Program Specialist Peri Newby a Proclamation.

Public Works Director Capurso thanked the Mayor and City Council for the recognition of the 64 th Annual Public Works Week and expressed his gratitude to the Public Works Staff and the Campbell community.

Director Capurso recognized agency partnerships with West Valley Solid Waste Authority, West Valley Clean Water; West Valley Sanitation District; and Valley Water.

The Councilmembers expressed their appreciation for the Public Works Department and all they do for the community.

COMMUNICATIONS AND PETITIONS
2 Packet Pg. 8
Minutes Acceptance: Minutes of May 21, 2024 7:00 PM (CONSENT CALENDAR)

Minutes of May 21, 2024 City Council Meeting Page 3
City Attorney Seligmann reported that at the May 21, 2024 Executive Session, the City Council voted unanimously to provide authority to the City Attorney to defend the City in the case of Jane Doe vs. City of Campbell.

ORAL REQUESTS

There were no oral requests.

COUNCIL ANNOUNCEMENTS
Asian American and Pacific Islander Heritage Month is celebrated in May. This month is dedicated to celebrating the cultures, traditions, and histories of Asian Americans and Pacific Islanders. As artists and journalists, doctors and engineers, business and community leaders and so much more, during this month, we take time to reflect and celebrate the important role that Asian Americans and Pacific Islanders have played in our shared history.

If you need assistance finding food, paying household bills, seeking available resources or other essential services, please visit 211.org or dial 211 from your phone. 211 is available in 180 languages, completely confidential and is accessible 24 hours a day, 7 days a week.

Join the Campbell Veterans Memorial Foundation in honoring the men and women who have died while serving in the United States military on Monday, May 27 from 9:00 am to 10:00 am at the Orchard City Green located here at City Hall.

City offices will be closed for business Monday, May 27 in observance of Memorial Day.

Police and emergency services will remain open.

CONSENT CALENDAR

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

The Consent Calendar was considered as follows:

4. Minutes of City Council Executive Session Meeting of May 7, 2024 Recommended Action: Approve the executive session meeting minutes of May 7, 2024.

This action approves the executive session meeting minutes of May 7, 2024.

5. Minutes of City Council Regular Meeting of May 7, 2024 Recommended Action: Approve the regular meeting minutes of May 7, 2024.

This action approves the regular meeting minutes of May 7, 2024.

6. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $4,272,141.15.

2 Packet Pg. 9
Minutes Acceptance: Minutes of May 21, 2024 7:00 PM (CONSENT CALENDAR)

Minutes of May 21, 2024 City Council Meeting Page 4
This action approves the bills and claims in the amount of $4,272,141.15 as follows: bills and claims checks dated April 22, 2024, in the amount of $2,756,962.79; payroll checks dated April, 25, 2024, in the amount of $34,696.62; and bills and claims checks dated April 29, 2024, in the amount of $1,480,481.74.

7. Second Reading of Ordinance 2308 Approving a Mitigated Negative Declaration, a Planned Development Permit and Density Bonus Request on Property Located at 57 -101 Gilman Avenue and 60 Dillon Avenue. (Ordinance/Roll Call Vote)
Recommended Action: That the City Council take second reading and adopt Ordinance 2308 approving a Mitigated Negative Declaration and approving a Planned Development Permit with a Density Bonus Request.

Ordinance 2308 approves a Mitigated Negative Declaration and Planned Development Permit with a Density Bonus Request for property located at 57- 101 Gilman Avenue and 60 Dillon Avenue.

8. Second Reading of Ordinance 2309 Assembly Bill 481, Military Equipment Annual Report (Ordinance/Roll Call Vote)
Recommended Action: That the City Council take a second reading and adopt Ordinance 2309 renewing the Military Equipment Policy set forth in Chapter 8.44 of the Campbell Municipal Code.

Ordinance 2309 renews the Military Equipment Policy set forth in Chapter 8.44 of the Campbell Municipal Code.

9. Resolution Authorizing the Use of Fiscal Year 2024/25 Road Maintenance and Rehabilitation Account (RMRA) Funds for Annual Street Maintenance (FY2023 Thru FY2026) for Resurfacing of Hamilton Avenue, Project 23 -BB (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution authorizing the use of Fiscal Year 2024/25 Road Maintenance and Rehabilitation Account (RMRA) Funds for the Annual Street Maintenance (FY2023 through FY2026) for the resurfacing of Hamilton Avenue, Project 23-BB.

Resolution 13160 authorizes the use of Fiscal Year 2024/25 Road Maintenance and Rehabilitation Account (RMRA) Funds for the Annual Street Maintenance (FY2023 through FY2026) for the resurfacing of Hamilton Avenue, Project 23-BB.

10. Accept Improvements for the Camden Avenue Resurfacing Project 21 -SS and File Notice of Completion (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution accepting the improvements for the Camden Avenue Resurfacing Project No. 21 -SS; directing the City Engineer to file the Notice of Completion; and authorizing the Finance Director to perform a budget adjustment returning the remaining project balance to fund balance (Vehicle Impact Fee) for future projects.

Resolution 13161 accepts the improvements for the Camden Avenue Resurfacing Project No. 21 -SS; directs the City Engineer to file the Notice of 2 Packet Pg. 10
Minutes Acceptance: Minutes of May 21, 2024 7:00 PM (CONSENT CALENDAR)

Minutes of May 21, 2024 City Council Meeting Page 5
Completion; and authorizes the Finance Director to perform a budget adjustment returning the remaining project balance to fund balance (Vehicle Impact Fee) for future projects.

11. Letter of Support for Cleveland Commons Affordable Housing Project (Resolution/Roll Call Vote)
Recommended Action: That the City Council approve and authorize the Mayor to sign and submit to the Santa Clara Methodist Retirement Foundation a letter of support for the proposed Cleveland Commons Affordable Housing Project to support their applications for funding.

This action approves and authorizes the Mayor to sign and submit to the Santa Clara Methodist Retirement Foundation a letter of support for the proposed Cleveland Commons Affordable Housing Project to support their applications for funding.

12. Authorization to Approve and Execute Agreements for Countywide AB939 Implementation Fee and Countywide Household Hazardous Waste (HHW) Collection Program (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution approving Agency Agreements for the Countywide AB939 Implementation Fee and the Countywide Household Hazardous Waste (HHW) Collection Program and authorizing the City Manager to execute said agreements and future extensions and amendments.

Resolution 13162 approves agency agreements for the Countywide AB939 Implementation Fee and the Countywide Household Hazardous Waste (HHW) Collection Program and authorizes the City Manager to execute said agreements and future extensions and amendments.

PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES

There were no public hearings and introductions of ordinances.

NEW BUSINESS

14. Approval of Farmers' Market Agreement (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution approving an agreement and authorizing the City Manager to execute the agreement between the City of Campbell and Urban Village Farmers' Market Association for the operation and management of the Downtown Campbell Farmers' Market.

Assistant City Manager Gaeta presented a staff report dated May 21, 2024. She acknowledged Administrative Analyst Jose Zetino for his work on the project.

Following Council questions, Mayor Landry asked if anyone wished to speak.

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Minutes Acceptance: Minutes of May 21, 2024 7:00 PM (CONSENT CALENDAR)

Minutes of May 21, 2024 City Council Meeting Page 6
Urban Village Farmers Market Association Executive Director, Ron Pardini spoke of his long-standing relationship with the City and is looking forward to continuing his commitment to the community.

The City Council thanked Mr. Pardini and Urban Village for their partnership with the City and looked forward to more years of the Farmers Market in Campbell.

After discussion, M/S: Scozzola/Lopez – That the City Council adopt Resolution 13163 approving an agreement and authorizing the City Manager to execute the agreement between the City of Campbell and Urban Village Farmers' Market Association for the operation and management of the Downtown Campbell Farmers' Market. The motion was adopted unanimously by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Scozzola
SECONDER: Lopez
AYES: Landry, Lopez, Scozzola, Furtado, Bybee

15. Proposed Modifications to the City Council Financial Assistance Program Policy (Resolution/Roll Call/Vote)
Recommended Action: That the City Council adopt a resolution approving the modifications to City Council Policy, Section 18, Financial Assistance Program Policy.

Recreation Services Manager Merriman presented a staff report dated May 21, 2024.

Following Council questions, Mayor Landry asked if anyone wished to speak.

There were no public speakers.

After discussion, M/S: Scozzola/Bybee – That the City Council adopt Resolution 13164 approving the modifications to City Council Policy, Section 18, Financial Assistance Program Policy. The motion was adopted unanimously by the following roll call vote:

RESULT: ADOPTED [UNANIMOUS]
MOVER: Scozzola
SECONDER: Bybee
AYES: Landry, Lopez, Scozzola, Furtado, Bybee

UNFINISHED BUSINESS
There was no unfinished business.

COUNCIL COMMITTEE REPORTS

16. Council Committee Reports
2 Packet Pg. 12
Minutes Acceptance: Minutes of May 21, 2024 7:00 PM (CONSENT CALENDAR)

Minutes of May 21, 2024 City Council Meeting Page 7
Recommended Action: That the City Council report on activities from their committee assignments.

Councilmember Bybee attended the Santa Clara County Sheriff’s Office Peace Officers Memorial event; Congresswoman Eshoo’s Citizens Academy reception to recognize students accepted in Service Academy’s; and noted the upcoming Cities Association of Santa Clara County General Membership meeting on June 13 at the Los Altos Community Center.

Vice Mayor Lopez thanked the Campbell Chamber of Commerce for their Boogie event; attended the Campbell Ministerial Group meeting with City Housing Manager Eloiza Murillo -Garcia; and noted the upcoming meeting of the League of CA Cities to discuss upcoming ballot measures.

Councilmember Furtado spoke of the upcoming Memorial Day event on May 27 on the Orchard City Green.

Councilmember Scozzola attended meetings of Silicon Valley Clean Energy; meeting of the Santa Clara Valley Transportation Authority Policy Advisory Board; the Boogie event in Downtown Campbell; and the South Bay Labor Brunch.

Mayor Landry attended the City Clerk’s Office Municipal Clerk’s Week reception; the Police Department Promotional Ceremony; City All Hands Meeting; Congresswoman Eshoo’s Citizens Academy; and will attend upcoming meetings of the Cities Association of Santa Clara County; West Valley Mayors and Managers; and the Good Old Gals event.

ADJOURN
Mayor Landry adjourned the meeting at 8:15 p.m.

APPROVED:

ATTEST:

Susan M. Landry, Mayor

Andrea Sanders, City Clerk

2 Packet Pg. 13
Minutes Acceptance: Minutes of May 21, 2024 7:00 PM (CONSENT CALENDAR)

City
Council
Report

TITLE: Approving Bills and Claims

RECOMMENDED ACTION

Approve the bills and claims in the amount of $630,365.65.

DISCUSSION

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

Type Check Date Amount
Bills & Claims May 06, 2024 $72,009.93
Payroll May 09, 2024 $76,344.22
Bills & Claims May 13, 2024 $482,011.50
Total $630,365.65

FISCAL IMPACT

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

Prepared by:

Celia Deniz, Accounting Clerk II

Reviewed by:

Norite Vong, Assistant Finance Director

Item: 3
Category: CONSENT CALENDAR
Meeting Date: June 4, 2024
3 Packet Pg. 14
Approving Bills and Claims Page 2 of 2

Approved by:

Brian Loventhal, City Manager

3 Packet Pg. 15

City
Council
Report

TITLE: Monthly Investment Transactions Report (April 2024)

RECOMMENDED ACTION

That the City Council review and accept the Monthly Investment Transactions Report for April 2024.

BACKGROUND

As required by California Government Code (GC) Section 53607, staff will submit to the City Council Monthly Investment Transaction Reports within 45 days of the prior month end that show a listing of investments purchased, sold, called, or that have reached maturity, along with any Local Agency Investment Fund ( LAIF) transfers. This is in addition to the Quarterly Investment Report, which shows a number of other items listed under Section VII.A of the City’s Investment Policy and is also submitted to the City Council within 45 days from the end of the prior quarter.

DISCUSSION

This Monthly Investment Transaction Report covers April 2024. As shown in Attachment A, staff made $1.3 million in deposits along with $2.2 million in withdrawals with the City’s main Local Agency Investment Fund (LAIF) account to manage operating expenditures. $292,000 in Q3 Quarterly Interest (Jan -Mar'24) was posted. The monthly LAIF investment rate rose to 4. 272%. Additionally, $116,000 was withdrawn from the Measure O 2020 bond account to cover March’s project expenditures. $157,000 in Q3 Quarterly Interest (Jan -Mar'24) was posted. Last ly, $566,000 was withdrawn from the Measure O 2022 bond account to cover March’s bond payment using bond premium funds and capitalized interest . $339,000 in Q3 Quarterly Interest (Jan -Mar'24) was posted to the Measure O 2022 bond account . For the month, $3,000 in total investment interest was received from our BNY account and posted into the City’s Wells Fargo cash account . Consistent with the recommended FY 2023-24 Investment Strategy approved by the City Council on September 5 , 2023 staff continues to watch for moderately long-term investment opportunities outside of LAIF , as interest rates remain high to provide the highest yet still safe return s, consistent with the City’s Investment Policy. Please note that all investment purchases made adhere to the City’s Investment Policy.

Item: 4
Category: CONSENT CALENDAR
Meeting Date: June 4, 2024
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Monthly Investment Transactions Report (April 2024) Page 2 of 2

FISCAL IMPACT

There is no fiscal impact associated with the review and acceptance of the Monthly Investment Transactions Report.

Prepared by:

John Formale, Accountant

Reviewed by:

Will Fuentes, Finance Director

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Monthly Investment Activity Report-4.30.24
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CITY OF CAMPBELL
Monthly Investment Transactions Report
April 1 to April 30, 2024
Account Trans. Date Apr 2024
LAIF - ******133, Main account
Average Monthly Yield 4.272%
Beginning Balance 30,696,110$
Transactions
Deposit 4/2/2024 600,000
Withdrawal 4/10/2024 (700,000)
Q3 Quarterly Interest (Jan-Mar'24) 4/15/2024 292,386
Withdrawal 4/15/2024 (1,500,000)
Deposit 4/19/2024 700,000
Monthly Total (607,614)
Ending Balance 30,088,495$
Account Trans. Date Apr 2024
LAIF - ******031, MEAS O, Series 2020
Average Monthly Yield 4.272%
Beginning Balance 12,813,149$
Transactions
Q3 Quarterly Interest (Jan-Mar'24) 4/15/2024 157,457
Principal drawdown- MEAS O March expenditures 4/17/2024 (116,000) Monthly Total 41,457
Ending Balance 12,854,606
Account Trans. Date Apr 2024
LAIF - ******032, MEAS O, Series 2022
Average Monthly Yield 4.272%
Beginning Balance 31,693,882$
Transactions
Q3 Quarterly Interest (Jan-Mar'24) 4/15/2024 338,715
Principal drawdown- MEAS O March bond payment 4/17/2024 (566,000) Monthly Total (227,285)
Ending Balance 31,466,597$
Account*** Trans. Date Apr 2024
Bank of New York (BNY) - ******818
Beginning Balance 17,999,860$
Transactions
Ending Balance 17,999,860$
Apr 2024
****BNY Investment interest received and posted to Wells Fargo cash account 3,125$ Total of all Investments
Beginning 93,203,000$
Ending 92,409,558$

4.a
Packet Pg. 18
Attachment: Monthly Investment Activity Report-4.30.24 (Monthly Investment Transactions Report (April 2024))

City
Council
Report

TITLE: Monthly Treasurer's Report (April 2024)

RECOMMENDED ACTION

That the City Council review and accept the Monthly Treasurer’s Report for the month ended April 30, 2024.

BACKGROUND

California government code section 41004 requires that the City Treasurer submits to the City Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The City of Campbell’s Finance Director has the responsibility of City Treasurer. This report is prepared to fulfill this requirement.

This report provides financial transaction data for the City of Campbell’s Funds collectively, including the City’s General (Operating) Fund.

DISCUSSION

This Monthly Treasurer’s Report details and summarizes receipts, disbursements, and fund balances for the month ended April 30, 2024. As shown in Attachment A, the City recognized $12.1 million in revenues and incurred $ 10.6 million in expenditures in total, for all City funds. The City’s overall ending fund balance for April 2024 is $92.5 million, an increase of $3.4 million from the prior month.

For the month of April 2024, the City’s General Fund recognized $ 10.4 million in revenues and incurred $ 4.9 million in expenditures. Of the revenues received, $5.9 million and $1. 2 million are attributed to property tax and sales tax, respectively . The City’s ending General Fund balance for April 2024 is $19.7 million, an increase of $6.4 million from the prior month.

FISCAL IMPACT

There is no fiscal impact associated with the review and acceptance of the Monthly Treasurer’s Report.

Item: 5
Category: CONSENT CALENDAR
Meeting Date: June 4, 2024
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Monthly Treasurer's Report (April 2024) Page 2 of 2

Prepared by:

Carolina Vargas, Accountant

Approved by:

Brian Loventhal, City Manager

Attachment:
a. 2024.04 Fund Balance Report
5 Packet Pg. 20
City of Campbell
Changes in Total Fund Balance
For the month ended April 30, 2024
Beginning Fund
Balance
07/01/2023
Increase/
(Decrease)
Jul- Mar
Current
Revenue
Current
Expenditure
Transfer
In
Transfer
Out
Fund Balance
as of
04/30/2024
General Fund
Nonspendable Fund Balance
Leases 173,181.00 - - - - - 173,181.00 Committed Fund Balance
General Plan Update 44,208.57 - - - - - 44,208.57 Compensated Absences 961,449.00 - - - - - 961,449.00 Liability insurance 136,473.00 - - - - - 136,473.00 Available Capital Improvement Reserve 30,109.00 - - - - - 30,109.00 Committed Capital Improvement Reserve 1,569,671.00 - - - - - 1,569,671.00 Community Center Facility 111,698.58 - - - - - 111,698.58 Heritage Theater 233,381.77 - - - - - 233,381.77 Historic Preservation 5,000.00 - - - - - 5,000.00 Assigned Fund Balance
Capital Projects (Construction Tax) 325,256.00 - - - - - 325,256.00 Unemployment insurance 90,000.00 - - - - - 90,000.00 PERS 2,252,000.00 - - - - - 2,252,000.00 OPEB 370,102.00 - - - - - 370,102.00 Encumbrances 976,257.58 - - - - - 976,257.58 Nonspendable Fund Balance
Unassigned Fund Balance
Unassigned 1,338,955.02 (5,666,279.28) 10,428,970.35 (4,876,180.00) 114,675.00 (2,492,036.00) (1,151,894.91) City Council Reserve 362,624.00 - - - - - 362,624.00 Economic fluctuations 9,955,452.00 - - - - - 9,955,452.00 Emergency 3,207,453.65 - - - - - 3,207,453.65 General Fund Total 22,143,272.17 (5,666,279.28) 10,428,970.35 (4,876,180.00) 114,675.00 (2,492,036.00) 19,652,422.24 Special Revenue
Vehicle Impact 2,892,018.00 667,130.95 62,008.47 - - - 3,621,157.42 Gas Tax 1,288,502.53 21,706.94 180,477.20 (165,111.91) 529,125.00 - 1,854,699.76 Asset Forfeiture 107,753.48 6,371.61 - - - - 114,125.09 Lighting & Landscape District 1,470,464.28 (857,121.59) 331,648.91 (449,878.65) 749,250.00 - 1,244,362.95 Housing & Community Development 345.85 - - - - - 345.85 Environmental Services 436,521.89 440,345.52 66,192.37 (118,125.61) 140,250.00 - 965,184.17 Supplemental Law Enforcement 180,648.36 17,554.83 44,659.15 (10,003.84) - - 232,858.50 State & Other Grants (1,519,732.25) 332,565.71 4,287.57 (3,910.46) - - (1,186,789.43) TDA Grant 351,238.48 16,674.38 - - - - 367,912.86 Federal Grants 128,344.97 877,820.89 4,741.46 - - - 1,010,907.32 ARPA Fund 40,718.35 168,593.78 - - - - 209,312.13 Housing Assistance 8,495,688.04 685,338.91 - (83,345.21) - - 9,097,681.74 Community Restitution Fund 97,234.82 18,021.87 3,550.00 (2,900.59) - - 115,906.10 Community Facilities District #1 897.63 86,353.24 - (1,003.27) - (107,250.00) (21,002.40) Community Facilities District #2 201,961.13 13,874.94 - (1,037.68) - (9,000.00) 205,798.39 Parkland Dedication 3,432,944.83 667,204.40 100.00 - - - 4,100,249.23 Recreation - Private Grants 6,022.19 264.53 - - - - 6,286.72 Adult Center 16,683.86 731.55 - - - - 17,415.41 Special Revenue Fund Total 17,628,256.44 3,163,432.46 697,665.13 (835,317.22) 1,418,625.00 (116,250.00) 21,956,411.81 Debt Service
Measure O 4,123,176.64 (2,855,821.27) 27,016.70 - - - 1,294,372.07 LID #30 32,333.61 1,417.92 - - - - 33,751.53 2016 Refunding Lease Revenue Bond 19,461.23 (684,718.35) 52.87 (68,300.00) 574,950.00 - (158,554.25) Debt Service Fund Total 4,174,971.48 (3,539,121.70) 27,069.57 (68,300.00) 574,950.00 - 1,169,569.35 Internal Service Fund
Motor Vehicle Pool 1,154,951.82 172,871.94 91,755.67 (98,280.07) - (2,925.00) 1,318,374.36 Information Technology Pool (1,078,697.00) (317,537.44) 96,832.65 10,306.20 502,961.00 - (786,134.59) Worker's Compensation 536,978.57 366,202.28 54,983.02 (11,737.02) - - 946,426.85 Internal Service Fund Total 613,233.39 221,536.78 243,571.34 (99,710.89) 502,961.00 (2,925.00) 1,478,666.62 Trust/Agency
Successor Agency 1,159,732.00 820,084.37 686.81 (146,294.75) - - 1,834,208.43 West Valley Solid Waste JPA 340,277.17 248,421.63 192,795.10 (136,111.24) - - 645,382.66 SCC Specialized Enforcement Team - 818,628.20 20,831.14 (22,496.35) - - 816,962.99 Trust/Agency Fund Total 1,500,009.17 1,887,134.20 214,313.05 (304,902.34) - - 3,296,554.08 Capital Project
Capital Projects Fund 929,106.00 (2,681,679.31) - (728,619.06) - - (2,481,192.37) Measure O CIP Fund 52,842,126.86 (2,223,688.91) 489,043.13 (3,682,083.80) - - 47,425,397.28 Capital Project Fund Total 53,771,232.86 (4,905,368.22) 489,043.13 (4,410,702.86) - - 44,944,204.91 Total City 99,830,975.51 (8,838,665.76) 12,100,632.57 (10,595,113.31) 2,611,211.00 (2,611,211.00) 92,497,829.01 Fund Description

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Attachment: 2024.04 Fund Balance Report (Monthly Treasurer's Report (April 2024)) City
Council
Report
TITLE: Resolution Authorizing Contract with the County of Santa Clara to Provide a Senior Nutrition Program for Fiscal Year 2024 -25 (Resolution/Roll Call Vote)

RECOMMENDED ACTION
That the City Council adopt a Resolution approving a contract and authorizing the City Manager to execute the contract with the County of Santa Clara for the provision of congregate meal services and providing funding for Campbell's Senior Nutrition Program for Fiscal Year 2024-25.

BACKGROUND
The City of Campbell (City) has provided a congregate Senior Nutrition Program (Program) since 1975. The goal of the Program is to provide nutritionally balanced meals five days per week to help promote the health, dignity, and independence of older adults and to provide socialization activities that enable older adults to remain active and productive members of the Campbell community. This Program would not be possible without the support of state and federal funds, administered by the County of Santa Clara (County) through an agreement between the City and the County allowing for the City to be reimbursed for costs incurred and related to this Program, up to a maximum amount.

Specifically, on July 1, 2024, the City will enter into a contract (Contract) with the County where the County agree s to reimburse the City for the cost of providing meals for persons 60 years of age and older and consistent with the Cit y’s Program. The Contract provides that reimbursements would be funded and authorized by the Older A mericans Act of 1965, from July 1, 2024 through June 30, 20 25, and the authorized reimbursements to the City would not exceed $104,160.00. The FY 2024-2025 contract is the beginning of a new 5-year contract cycle.

The purpose of this memorandum is to seek Council authorization for the City Manager to ex ecute the Senior Nutrition Program Contract with the County to continue the County’s obligation to reimburse the City for costs related to the operation of its Program for Fiscal Year (FY) 202 4-25, in an amount not to exceed $104,160.00. Attached to this report is the County Budget Justification for FY 202 4-25 (Attachment B), which outlines the specific terms and maximum reimbursements for the coming year.

Item: 6
Category: CONSENT CALENDAR
Meeting Date: June 4, 2024
6 Packet Pg. 22
Senior Nutrition Program Contract FY 2024-2025 Page 2 of 3

DISCUSSION

The FY 2024-2025 Contract with the County begins a new 5 -year contract cycle for the term and all provisions for the County’s administrative oversight of the Program funds for one year, from July 1, 202 4 through June 30, 202 5. The Contract i ncludes a maximum reimbursement amount for Program expenses in FY 202 4-25, for the provision of 17,360 meals, at a per meal rate of $ 6.00 per meal, with a maximum reimbursement amount to the City of $104,160.00.

The FY 2024-25 Program budget includes an increase of 2,480 meals from the County.

The increase of meals (10 per day) is a result of the program attendance growth during the previous FY 2023-24. The total cost of operating the City’s Senior Nutrition Program for FY 202 4-25 is $242,556 (including personnel costs), with the County covering and reimbursing the City for a maximum of $ 104,160.00 in food and non -food costs as well as other miscellaneous program items and the City pr ogramming the remaining $138,396 into the Program’s proposed budget (101.525) in the General Fund. Please note that budget unit 101.525 also has other costs in it not directly related to providing senior nutrition meals.

The City and County share in covering the cost of providing meals for individuals participating in the City’s Senior Nutrition Program in the City of Campbell. While the participants contribute to the cost of their meals, these contributions are minimal and are considered by the County to be voluntary. The City pays for personnel costs to cover the cost of staff necessary to run the Program and the County reimburses the City for costs related to providing meals to seniors participating in the Program at a per meal rate of $6.00 (which covers food, supplies and materials, and other non -personnel costs related to the Program).

FISCAL IMPACT

The FY 2024-25 Program budget includes an increase of 2,480 meals from the County .

ALTERNATIVE

Do not authorize the City Manager to execute the Senior Nutrition Program Contract FY 2024-2025 with the County and provide alternative direction to staff.

6 Packet Pg. 23
Senior Nutrition Program Contract FY 2024-2025 Page 3 of 3

Prepared by:

Tina Wong-Erling, Senior Services
Supervisor

Reviewed by:

Natasha Bissell, Recreation and
Community Services Director

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Council Resolution County FY 2024-2025
b. FY 25 SNP Budget Justification
c. DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals
6 Packet Pg. 24
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

APPROVING THE CONTRACT WITH THE COUNTY OF SANTA CLARA TO

INCREASE FUNDING IN THE SENIOR
NUTRITION PROGRAM IN FISCAL YEAR 2024-2025 AND AUTHORIZING

THE CITY MANAGER TO EXECUTE THE CONTRACT

WHEREAS, the City of Campbell recognizes the need for a nutritious meal program for senior citizens in Campbell; and

WHEREAS, the County receives funding through the Older Americans Act of 1965; and

WHEREAS, the City and the County have worked collaboratively since 1975 to share the cost and administration of operating a Senior Nutrition Program in Campbell; and

WHEREAS, the Contract is established on July 1, 20 24, and begins a new 5 - year contract cycle; and

WHEREAS, the Contract with the County of Santa Clara is required to execute the term for one year, from July 1, 202 4 through June 30, 202 5, and clarify the financial obligations of each party to include a maximum reimbursement to the City of $104,160.00 for program expenses and the provision of 1 7,360 meals, at a per meal rate of $6.00 per meal.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby approve the Contract with Santa Clara County through June 30, 202 5 and to provide increased funding, the amount of $ 104,160.00 for the Senior Nutrition Program for Fiscal Year 202 4-2025 and authorizes the City Manager to execute the Contract.

PASSED AND ADOPTED this 4th day of June 2024 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

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Attachment: Council Resolution County FY 2024-2025 (Senior Nutrition Program Contract FY 2024-2025)

________________________
Susan M. Landry, Mayor

ATTEST:

______________________
Andrea Sanders , City Clerk

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Attachment: Council Resolution County FY 2024-2025 (Senior Nutrition Program Contract FY 2024-2025) Attachment B

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Attachment: FY 25 SNP Budget Justification (Senior Nutrition Program Contract FY 2024-2025) C
ontract between the County of Santa Clara and City of Campbell

Page 1 of 19 ends

CONTRACT BETWEEN THE COUNTY OF SANTA CLARA AND

THE CITY OF CAMPBELL

1. T
his Contract is between the County of Santa Clara (henceforth, COUNTY) and The C
ity of Campbell ( henceforth, CONTRACTOR) for the Senior Nutrition Program – Congregate Meals.

2. T
he parties agree to comply with the General T erms and C onditions contained in Articles I-V of this Contract and provisions contained in Exhibit A: Program Provisions, Exhibit B: Program Plan & Provisions, Exhibit C: Budget, and Exhibit D: Logic Model which are attached hereto and incorporated herein by this reference and made a part of this Contract.

I
N WITNESS WHEREOF, COUNTY and CONTRACTOR hereby agree to the terms of this Contract.

COUNTY OF SANTA CLARA CONTRACTOR
___
___________________________ ________________________________ Daniel Little, Director Brian Loventhal, City Manager
Social Services Agency City of Campbell
Dat
e: _________ Date: _________
___
___________________________
Daniel Crick, Chief Fiscal Officer
Social Services Agency
D
ate: _________
___
___________________________
Procurement Department
D
ate: _________
APPR

OVED AS TO FORM AND LEGALITY
___
___________________________
Deputy County Counsel
D
ate: _________
DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior Nutrition Program Contract FY

Contract between the County of Santa Clara and City of Campbell

Page 2 of 19 ends

Contract General Terms and Conditions

Article I
General Terms

1. E NTIRE CONTRACT
This Contract and its Exhibits/Appendices (if any) constitutes the final, complete and exclusive statement of the terms of the agreement between the parties. It incorporates and supersedes all the Contracts, covenants and understandings between the parties concerning the subject matter hereof, and all such Contract s, covenants and understandings have been merged into this Contract. No prior or contemporaneous Contract or understanding, verbal or otherwise, of the parties or their agents shall be valid or enforceable unless embodied in this Contract.

2. A

MENDMENTS
This Contract may only be amended by written instrument and signed by authorized representatives of all contracting parties.

3. C
ONFLICTS OF INTEREST; POLITICAL REFORM ACT
a. CONTRACTOR shall comply, and require its subcontractors to comply, with all applicable (i) requirements governing avoidance of impermissible client conflicts; and (ii) federal, state and local conflict of interest laws and regulations including, without limitation, California Government Code section 1090 et. seq., the California Political Reform Act (California Government Code section 87100 et. seq.) and the regulations of the Fair Political Practices Commission concerning disclosure and disqualification (2 California Code of Regulations section 18700 et. seq.). Failure to do so constitutes a material breach of this Contract and is grounds for immediate termination of this Contract by the COUNTY.

b. In accepting this Contract , CONTRACTOR covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of this Contract. CONTRACTOR further covenants that, in the performance of this Contract, it will not employ any CONTRACTOR or person having such an interest.

CONTRACTOR, including but not limited to CONTRACTOR’s employees and subcontractors, may be subject to the disclosure and disqualification provisions of the California Political Reform Act of 1974 (the “Act”), that (1) requires such persons to disclose economic interests that may foreseeably be materially affected by the work performed under this Contract, and (2) prohibits such persons from making or participating in making decisions that will foreseeably financially affect such interests.

c. If the disclosure provisions of the Political Reform Act are applicable to any individual providing service under this Contract, CONTRACTOR shall, upon execution of this Contract, provide the COUNTY with the names, description of individual duties to be performed, and email addresses of all individuals, including but not limited to CONTRACTOR’s employees, agents and subcontractors, that could be substantively involved in “making a governmental decision” or “serving in a staff capacity and in that capacity participating in making governmental decisions or performing duties that would be performed by an individual in a designated DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior Nutrition Program Contract FY

Contract between the County of Santa Clara and City of Campbell

Page 3 of 19 ends

position,” (2 CCR 1870 0.3), as part of CONTRACTOR’s service to the COUNTY under this Contract. CONTRACTOR shall immediately notify the COUNTY of the names and email addresses of any additional individuals later assigned to provide such service to the COUNTY under this Contract in such a capacity.

CONTRACTOR shall immediately notify the COUNTY of the names of individuals working in such a capacity who, during the course of the Contract, end their service to the COUNTY.

4. GOVERNING LAW, VENUE
This Contract has been executed and delivered in, and shall be construed and enforced in accordance with, the laws of the State of California. Proper venue for legal action regarding this Contract shall be in the County of Santa Clara.

5. ASSIGNMENT
No assignment of this Contract or of the rights and obligations hereunder shall be valid without the prior written consent of the other party.

6. WAIVER
No delay or failure to require performance of any provision of this Contract shall constitute a waiver of that provision as to that or any other instance. Any waiver granted by a party shall be in writing and shall apply to the specific instance expressly stated.

7. I NDEPENDENT CONTRACTOR STATUS
CONTRACTOR will perform all work and services described herein as an independent contractor and not as an officer, agent, servant, or employee of COUNTY. None of the provisions of this Contract is intended to create, nor will be deemed or construed to create, any relationship between the parties other than that of independent parties contracting with each other for purpose of effecting the provisions of this Contract.

The parties are not, and will not be construed to be in a relationship of joint venture, partnership, or employer -employee. Neither party has the authority to make any statements, representations, or commitments of any kind on behalf of the other party, or to use the name of the other party in any publications or advertisements, except with the written consent of the other party or as is explicitly provided herein.

CONTRACTOR is solely responsible for the acts and omissions of its officers, agents, employees, contractors, and subcontractors, if any.

8. SEVER

ABILITY OF PROVISIONS
If any provision(s) of this Contract are held invalid, the remainder of this Contract remains in force.

Article II
Fiscal Accountability and Requirements

1. AV

AILABILITY AND SUBSTITUTION OF FUNDS
a. Notwithstanding any provision herein, this Contract is valid and enforceable only if sufficient funds are available. In the event of reduction, suspension, discontinuance, or other unavailability of funds, COUNTY unilaterally may take appropriate actions including, but not limited to, reducing existing service DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior Nutrition Program Contract FY

Contract between the County of Santa Clara and City of Campbell

Page 4 of 19 ends

authorization, immediate termination of the Contract, or reducing the maximum dollar amount of this Contract with no liability occurring to the COUNTY.

b. The COUNTY may substitute State or Federal funds for funds appropriated by the Board of Supervisors for payments to be made pursuant to this Contract.

CONTRACTOR will then be bound by the requirements of any State or Federal grant contracts, statutes, regulations, guidelines, or directives associated with the funds.

2. C

OMPENSATION TO CONTRACTOR
Compensation method shall be Fee for Service.

3. DI SALLOWED COSTS
a. CONTRACTOR is liable for any funds expended that are not in accordance with this Contract, including, but not limited to, disallowed costs, violation, and/or default of Contract. CONTRACTOR will repay COUNTY disallowed costs, violation and/or default amounts within ninety (90) days of discovery of these costs. This provision survives the termination of this Contract.

b. If funding under this Contract is from Federal sources, such funds may not be used by CONTRACTOR, either directly or indirectly, as a contribution for the purpose of obtaining any Federal funds under any Federal programs. An indirect use of such funds to match Federal funds is defined as: “the allocation by CONTRACTOR of funds received under this Contract to a non-matching expenditure, thereby releasing or displacing other of its funds for the purpose of matching Federal funds.”

4. F

INANCIAL RECORDS
a. CONTRACTOR will establish and maintain a system of financial controls and accounting in conformance with Generally Accepted Accounting Principles (GAAP).

b. CONTRACTOR must maintain accurate and complete financial records of all costs and operating expenses in connection with this Contract including, but not limited to subcontracts, invoices, timecards, cash receipts, vouchers, canceled checks, bank Statements, and other official documentation indicating in proper detail the nature and propriety of all costs incurred, and reimbursed by COUNTY.

c. The financial records must show that funds received under this Contract are used for purposes consistent with the terms of this Contract.

Article III
Reporting, Records, Audit, Evaluations, and Termination

1. I

NSPECTION AND AUDIT
a. All records, books, reports, and documentation maintained by CONTRACTOR pursuant to this Contract, or related to the CONTRACTOR’s activities and expenditures under this Contract, will be open for inspection and audit by Federal, State, and County officials, or their agents, upon demand at reasonable times.

DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior Nutrition Program Contract FY

Contract between the County of Santa Clara and City of Campbell

Page 5 of 19 ends

Such records must be kept in the State of California for the retention period specified in this Contract. This provision survives the termination of this contract.

b. CONTRACTOR will provide the Federal, State, or County officials, or their agents’ reasonable access, through representatives of CONTRACTOR, to facilities, records, clients, and employees that are used in conjunction with the provision of contract services, except where prohibited by Federal or State laws, regulations or rules.

c. CONTRACTOR must submit to COUNTY audited financial reports conducted by an independent certified public accountant no later than four (4) months after the end of the last month of the contract term, indicating that reported costs are actual, reasonable, necessary, allowable, and computed in accordance with GAAP and provisions stipulated in this Contract. In addition, the CONTRACTOR must submit any management letters or management advisory letters that apply to the CONTRACTOR’s agency audit. COUNTY has the discretion to only require an audit report every two (2) years.

d. COUNTY may elect to accept an audit report in accordance with GAAP conducted to meet compliance requirements of other funding entities in the event all of the above provisions are met.

2. R

EPORTING REQUIREMENTS
a. CONTRACTOR must maintain complete and accurate records of its operation, including any and all records required by COUNTY relating to matters covered by this Contract, including, but not limited to, financial records, supporting documents, client statistical records, personnel and all other pertinent records. COUNTY may receive copies of any and all such records upon request.

b. must submit to COUNTY a compensation claim on forms approved by COUNTY Social Services Agency.

c. CONTRACTOR must assist COUNTY in meeting COUNTY's reporting requirements to the State and other agencies with respect to CONTRACTOR's work hereunder. This cooperation includes assisting COUNTY to prepare evaluations required by the State or Federal governments regarding services provided by CONTRACTOR under this Contract. CONTRACTOR must submit to COUNTY any and all reports that may be required by COUNTY concerning CONTRACTOR's performance under this Contract.

d. Upon COUNTY's request, CONTRACTOR must provide COUNTY evidence of CONTRACTOR's capacity to perform under this Contract, its compliance with applicable statutes and regulations, and its compliance with the terms and conditions of this Contract.

e. All records, books, reports and documentation must be retained in the State of California by CONTRACTOR for four (4) years after termination of this Contract; or until all Federal , State and County audits are completed; or until all disputes, litigation, or claims are resolved; whichever is later. All such records, books, reports and documentation must be transmitted to the COUNTY of Santa Clara, DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior Nutrition Program Contract FY

Contract between the County of Santa Clara and City of Campbell

Page 6 of 19 ends

Social Services Agency in the event that CONTRACTOR goes out of business during the period in which records are required to be maintained. This provision survives the termination of this contract.

f. CONTRACTOR must within 30 calendar days advise the COUNTY of 1) the issuance of any legal complaint by an enforcement agency, or any enforcement proceedings by any Federal, State or local agency for alleged violations of Federal, State or local rules, regulations or laws, and/or 2) the issuance of citations, court findings or administrative findings for violations of applicable Federal, State or local rules, regulations or laws.

g. CONTRACTOR guarantees that it, its employees, contractors, subcontractors or agents are not suspended or debarred from receiving Federal fund as listed in the List of Parties Excluded from Federal Procurement or Non-procurement Programs issued by the Federal General Services Administration (https://www.sam.gov/ ).

CONTRACTOR must within 30 calendar days advise the COUNTY if it, its employees, contractors, subcontractors or agents become suspended or debarred from receiving Federal funds as listed in the List of Parties Excluded from Federal Procurement or Non -procurement Programs issued by the Federal General Services Administration during the term of this Contract.

3. RE

SPONSIBILITY FOR AUDIT EXCEPTIONS
CONTRACTOR accepts responsibility for receiving, replying to, and complying with any audit exceptions by appropriate Federal, State, or County, audit agencies.

4. M ONITORING AND EVALUATION
a. COUNTY's Social Services Agency will monitor the work performed and financial operations conducted under this Contract to determine whether CONTRACTOR's operation conforms to County policy, Federal and State statutes and regulations, and to the terms of this Contract.

b. COUNTY may conduct participant interviews to determine program compliance.

c. CONTRACTOR agrees to participate in and cooperate with studies and surveys COUNTY deems necessary to meet its monitoring and evaluation responsibility.

d. CONTRACTOR must furnish all data, State ments, records, information, and reports necessary for COUNTY to monitor, review, and evaluate the performance of the program and its components. Performance evaluatio ns will examine the following five factors: 1) fiscal accountability; 2) completion of work within a given time frame; 3) ability and effort to meet the performance criteria; 4) quality of services; and 5) a recommendation for future contracting with the CONTRACTOR.

e. If, in the course of monitoring and evaluation, COUNTY discovers any practice, procedure or policy of CONTRACTOR that deviates from the terms of this Contract; that violates State or Federal statutes or regulations; that threatens the success of the program carried on pursuant to this Contract, or that jeopardizes the fiscal integrity of said program, COUNTY may impose reasonable funding restrictions upon notice specifying the nature of the restrictions(s), reasons for imposition, the corrective action that must be taken before they will be removed, DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior Nutrition Program Contract FY

Contract between the County of Santa Clara and City of Campbell

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time allowed for completing the corrective action, and method of requesting reconsideration.

f. CONTRACTOR must respond in writing to any discrepancies, violations, or deficiencies identified by COUNTY within ten (10) days.

5. CO RRECTIVE ACTION PROCEDURE
a. Upon receipt by COUNTY of information regarding a failure by CONTRACTOR to comply with any provision of this Contract, COUNTY has the right to forward to CONTRACTOR a notice of COUNTY’s intent to consider corrective action to enforce compliance with such provision. Such notice will indicate the nature of the issue, or issues, to be reviewed in determining the need for corrective action.

CONTRACTOR may have the opportunity to respond or participate in formulating the corrective action recommendation. COUNTY has the right to require the presence of CONTRACTOR’s officer(s) or employee(s) at any hearing or meeting called for the purpose of considering corrective action.

b. After issuing such notice, and after considering CONTRACTOR’s response, if any, COUNTY may forward to CONTRACTOR a set of specific corrective actions recommended and a timetable for implementing the specified corrective actions recommended. Following implementation of the corrective actions, CONTRACTOR will forward to COUNTY, within the time specified by COUNTY, any verification required by COUNTY regarding the corrective actions.

c. In the event CONTRACTOR does not implement the corrective actions recommended in accordance with the corrective actions timetable, COUNTY may suspend payments hereunder or immediately terminate this Contract without further notice to CONTRACTOR.

6. T

ERMINATION
a. Termination for Convenience
COUNTY may, by written notice to CONTRACTOR, terminate all or part of this Contract at any time for the convenience of the COUNTY. The notice shall specify the effective date and the scope of the termination.

b. T ermination for Cause
COUNTY may, at any time, elect to suspend or terminate this Contract or withhold payments to CONTRACTOR, in whole or in part, for cause, by giving written notice specifying the effective date and scope of such termination. Cause includes, but is not limited to the following:

i. CONTRACTOR failure to comply with any contract provision; ii. CONTRACTOR fails to meet the performance criteria of this Contract; iii. COUNTY deems CONTRACTOR’s performance unsatisfactory. iv. Litigation is pending with respect to the CONTRACTOR’s performance under this Contract that may jeopardize or adversely affect services; v. CONTRACTOR is the subject of a voluntary or involuntary proceeding under the Bankruptcy Act;
vi. CONTRACTOR submits to COUNTY any reports that are incorrect or incomplete in any material respect, or fails to file timely reports; or, DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior Nutrition Program Contract FY

Contract between the County of Santa Clara and City of Campbell

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vii. CONTRACTOR is suspended or debarred from receiving Federal funds as listed in the List of Parties Excluded from Federal Procurement or Non- procurement Programs issued by the General Services Administration.

c. T erminations
In the event of any termination, all finished or unfinished documents, data, studies, reports, and materials (Materials) prepared by the CONTRACTOR under this Contract becomes the property of the COUNTY and will be promptly delivered to the COUNTY. Upon termination, the CONTRACTOR may make and retain a copy of such Materials. CONTRACTOR may be compensated based on the completion of services provided, as solely and reasonably determined by COUNTY.

7. N ON-EXCLUSIVE REMEDIES
The remedies listed in this Contract are non-exclusive, and COUNTY retains all other rights and remedies it may have under general law, including the right to terminate the Contract immediately without advance notice if CONTRACTOR becomes unable to perform its obligations under this Contract.

Article IV
Statutes, Regulations, and Policies

1. CO

MPLIANCE WITH ALL LAWS, INCLUDING NONDISCRMINATION, EQUAL

OPPORTUNITY, AND WAGE THEFT PREVENTION
a. C ompliance with All La ws. CONTRACTOR sha ll comply with all applicable Federal, State, and local laws, regulations, rules, and policies (collectively, “Laws”), including but not limited to the non-discrimination, equal opportunity, and wage and hour Laws referenced in the paragraphs below.

b. C omplia nce with Non-Discrimin ation and Equal Opportunity La ws:

CONTRACTOR sha ll comply with all applicable La ws c oncerning nondiscrimination and equal opportunity in employment and contracting, including but not limit ed to the f ollowing: Santa Clara County’s policies for c ontractors on nondiscrimination and equal opportunity; Title VII of the Civil Rights Act of 1964 as amended; Am ericans with Dis abilities Ac t of 1990; the Age Discrimination in Employment Act of 1967; the Rehabilitation Act of 1973 (Sections 503 and 504); the Equa l Pay Ac t of 1963; California Fair Employme nt and Housi ng Ac t (Government Code sections 12900 et seq.); California Labor Code sections 1101, 1102, and 1197.5; and the Genetic Information Nondiscrimination Act of 2008. In addition to the foreg oing, CONTRACTOR sha ll not discrimin ate against any subcontractor, employee, or a pplicant for employment because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political belief, organizational affiliation, or marital status in the recruitment, selection for training (including but not limit ed to a pprenticeship), h iring, employme nt, assignment, promotion, l ayoff, rates of pay or other for ms of compe nsation. Nor sha ll CONTRACTOR discriminate in the pr ovision of ser vices p rovided und er this contract because of age, race, color, national origin, ancestry, religion, sex, gender identity, gender expression, sexual orientation, mental disability, physical disability, medical condition, political beliefs, or ga nizational affiliations, or marital status.

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c. C ompliance with Wage a nd Hour La ws: CONTRACTOR sha ll comply with all applicable wa ge and hour Laws, which may inc lude but are not limit ed to, the Federal Fair Labor Standards Act, the California Labor Code, and, if applicable, any local Minimum Wage, Prevailing Wage, or Living Wage laws.

d. D efin itions: For purposes of this Section, the following definitions shall apply. A “Final Judgment” sha ll m ean a judgment, d ecision, d etermination, or order (a) which is issued by a court of law, an investigatory government agency authorized by law to enforce an a pplicable Law, an arbiter, or arbitration panel and (b) for which all appeals have been exhausted or the time period to appeal has expired.

For pay equity Laws, relevant inv estigatory gov ernment agencies in clude the federal Equa l Empl oyment Opportunity Commission, the Ca lifornia Division of Labor Standards Enforcement, and the California Department of Fair Employment and Housing. Violation of a pay equity Law shall mean unlawful discrimination in co
mpensation on the basis of an individual’s sex, gender, gender identity, gender expression, sexual orientation, race, color, ethnicity, or national origin under Title VII of the C ivil Rights A ct of 1964 as amende d, the Equa l Pay Ac t of 1963, California Fair Employment and Housing Ac t, or Ca lifornia Labor C ode section 1197.5, as a pplicable. F or w age a nd hour La ws, relevant inv estigatory government agencies in clude the federal Department of La bor, the Ca lifornia Division of Labor Sta ndards Enforcement, and the City of Sa n Jose’s Office of Equality Assurance.

e. Pr i
or J udgments, D ecisions or Ord ers aga inst CONTRACTOR : BY SIGNI NG

THIS CONTRACT, CONTRACTOR AFFIRMS THAT IT HAS DISCLOS ED ANY

FINAL JUDGMENTS THAT (A) WERE ISSUED IN THE FIVE YEARS PRIOR TO

EXECUTING THIS CONTRACT B Y A C OURT, AN INVESTIGATORY

GOVERNMENT AGEN CY, ARBITER, OR ARBITRATION PANEL AND (B)

FOUND THAT CONTRACTOR VIOLATED AN APPLICABLE WAGE AND HOUR LAW OR PAY EQUITY LAW. CONTRACTOR FURTHER AFFIRMS THAT IT HAS SATISFIED AND COMPLIED WI TH—OR HAS REAC HED CONTRACT WI TH THE COUNTY REGARDING THE MANNER IN WHICH IT WILL SATISFY—ANY SUCH FINAL JUDGMENTS, DECISIONS, DETERMINATIONS, OR ORDERS.

f. Vi ola tions of Wage and Hour Laws or Pay Equity Laws During Term of Contract: If at an y time during the ter m of this Contract, CONTRACTOR receives a F inal Judgment rendered against it for violation of an applicable wage and hour Law or pay equity Law, then CONTRACTOR shall promptly satisfy and comply with any such F inal Judgment. CONTRACTOR sha ll in form t he O ffice of t he C ounty Executive-Office of Countywide Contracting Management (OCCM) of any relevant Final Judgment against it within 30 d ays of the Final Judgment becoming final or of learning of the Final Judgment, whichever is later. CONTRACTOR sha ll also provide any documentary evidence of compliance with the Final Judgm e nt within 5 days of satisfying the Final Judgment. A ny notice required by this paragraph shall be addressed to the Office of the County Executive-OCCM at 70 W. Hedding Street, East Wing, 11th F loor, San José, CA 95110. Noti ce pr ovisions in this paragraph are sepa rate from any other notice pr ovisions in this Contract a nd, accordingly, on ly notice pr ovided to the O ffice of the C ounty Ex ecutive-OCCM satisfies the notice requirements in this paragraph.

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g. Access to Records Concerning Compliance with Pay Equity Laws: In addition to and notwithst anding any other pr ovision of this Contract c oncerning access to CONTRACTOR’s records, CONTRACTOR sha ll p ermit the COUNTY and/or its authorized representatives to audit and review records related to compliance with applicable pay equity Laws. Upon the COUNTY’s request, CONTRACTOR shall provide the COUNTY with access to any a nd all facilities and records, including but not limited to financial and employee records, that are related to the purpose of this Section, except where prohibited by federal or state laws, regulations or rules. COUNTY’s access to such records and facilities shall be permitted at any time during CONTRACTOR’s no rmal business hou rs upon no l ess th an 10 business days’ advance notice.

h. Pay Equity Notification: CONTRACTOR shall (1) at least once in the first year of this Contract and annually thereafter, provide ea ch of its empl oyees working in California and e ach pers on app lying to CONTRACTOR fo r a job in C alifornia (collectively, “Employees and Job Applicants”) with an electronic or paper copy of any a pplicable p ay equity La ws, or (2) throughout the term of this Contract, continuously post an electronic copy of all applicable pay equity Laws in conspicuous places accessible to all of CONTRACTOR’s Employees and Job Applicants.

i. M
aterial Breach: Failure to comply with any part of this Section shall constitute a material breach of this Contract. In the event of such a breach, the County may, in its discretion, exercise any or all remedies available under this Contract and at law. COUNTY may, among other things, take any or all of the following actions:

I. Suspe nd or terminate any or all parts of this Contract.

II. W ithhold payment to CONTRACTOR until full satisfa ction of a Final Judgment concerning violation of an applicable wage and hour Law or pay equity Law.

III. O ffer CONTRACTOR an opportunity to cure the breach.

j. Subcontractors: CONTRACTOR shall impose all of the requirements set forth in this Section on any subcontractors permitted to perform work under this Contract.

This in cludes ensuring that any subcontractor re ceiving a Final Judgment f or violation of an applicable Law pr omptly sa tisfies and complies with such Final Judgment.

k. C
ONTRACTOR recognizes the mandatory standards and policies relating to energy efficiency in the State energy conservation plan (Title 24, California Administrative Code).

l. For Contracts over $100,000 CONTRACTOR will comply with all applicable standards, orders, or requirements issued under Section 306 of the Clean Air Act (42 U.S. Code 1857 (h)), Section 508 of the Clean Water Act (33 U.S. Code 1368), Executive Order 11738, and Environmental Protection Agency regulations (40 CFR Part 15).

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m. CONTRACTOR must establish procedures assuring that any person’s complaints and grievances against CONTRACTOR regarding the delivery of services under this Contract are promptly addressed and fairly resolved.

2. AS SIGNMENT OF CLAYTON ACT, CARTWRIGHT ACT CLAIMS
CONTRACTOR hereby assigns to the COUNTY all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, materials, or services by the CONTRACTOR for sale to the COUNTY pursuant to this Contract.

3. C OUNTY NO -SMOKING POLICY
CONTRACTOR and its employees, agents and subcontractors, shall comply with the COUNTY’s No-Smoking Policy, as set forth in the Board of Supervisors Policy Manual section 3.47 (as amended from time to time), which prohibits smoking: (1) at the Santa Clara Valley Medical Center Campus and all COUNTY -owned and operated health facilities, (2) within 30 feet surrounding COUNTY -owned buildings and leased buildings where the COUNTY is the sole occupant, and (3) in all COUNTY vehicles.

4. F OOD AND BEVERAGE STANDARDS
a. Except in the event of an emergency or medical necessity, the following nutritional standards shall apply to any foods and/or beverages purchased by CONTRACTOR with COUNTY funds for COUNTY-sponsored meetings or events.

b. If food is to be provided, healthier food options must be offered. “Healthier food options” include (1) fruits, vegetables, whole grains, and low -fat and low -calorie foods; (2) minimally processed foods without added sugar and with low sodium; (3) foods prepared using healthy cooking techniques; and (4) foods with less than

0.5 grams of trans fat per serving. Whenever possible, CONTRACTOR shall (1) offer seasonal and local produce; (2) serve fruit instead of sugary, high calorie desserts; (3) attempt to accommodate special, dietary and cultural needs; and (4) post nutritional information and/or a list of ingredients for items served. If meals are to be provided, a vegetarian option shall be provided, and the CONTRACTOR should consider providing a vegan option. If pre -packaged snack foods are provided, the items shall contain: (1) no more than 35% of calories from fat, unless the snack food items consist solely of nuts or seeds; (2) no more than 10% of calories from saturated fat; (3) zero trans-fat; (4) no more than 35% of total weight from sugar and caloric sweeteners, except for fruits and vegetables with no added sweeteners or fats; and (5) no more than 360 mg of sodium per serving.

c. If beverages are to be provided, beverages that meet the COUNTY’s nutritional criteria are (1) water with no caloric sweeteners; (2) unsweetened coffee or tea, provided that sugar and sugar substitutes may be provided as condiments; (3) unsweetened, unflavored, reduced fat (either nonfat or 1% low fat) dairy milk; (4) plant-derived milk (e.g., soy milk, rice milk, and almond milk) with no more than 130 calories per 8 ounce serving; (5) 100% fruit or vegetable juice (limited to a maximum of 8 ounces per container); and (6) other low -calorie beverages (including tea and/or diet soda) that do not exceed 40 calories per 8 ounce serving. Sugar-sweetened beverages shall not be provided.

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5. CONTRACTING PRINCIPLES
CONTRACTOR agrees to comply with the COUNTY’s Contracting Principles set forth in the Board Policy Manual. The Contracting Principles require, among other things, that CONTRACTOR be a fiscally responsible entity and treat its employees fairly.

CONTRACTOR is also required to (1) comply with all applicable federal, state and local rules, regulations and laws; (2) maintain financial records , and make those records available upon request; (3) provide to the COUNTY copies of any financial audits that have been completed during the term of the contract; and (4) upon the COUNTY's request, provide the COUNTY reasonable access, through representatives of the CONTRACTOR, to facilities, financial and employee records that are related to the purpose of the contract, except where prohibited by federal or state laws, regulations or rules. Refer to:
https://boardclerk.sccgov.org/sites/g/files/exjcpb656/files/BOSPolicyCHAP5.pdf

6. T HIRD PARTY BENEFICIARIES
This Contract does not, and is not intended to, confer any rights or remedies upon any person or entity other than the parties.

7. M AINTENANCE OF SOFTWARE
If CONTRACTOR is provided with “remote access”, defined as the act of connecting to a COUNTY attached information technology system from a non-county attached system through a public network, CONTRACTOR will maintain and use its non-county system, hardware, and software in compliance with COUNTY standards and policies set by the COUNTY Information Services Department.

8. C

ONTRACT EXECUTION
Unless otherwise prohibited by law or County policy, the parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “ELECTRONIC COPY OF A SIGNED CONTRACT” refers to a transmission by facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term “ELECTRONICALLY SIGNED CONTRACT” means a contract that is executed by applying an electronic signature using technology approved by the COUNTY.

9. L
I VING WAGE (If Applicable)
Unless otherwise exempted or prohibited by law or County policy, where applicable, CONTRACTORS that contract with the COUNTY to provide Direct Services developed pursuant to a formal Request for Pro posals process, as defined in Co unty of Santa Clara Ordinance Code Division B36 (“Division B36”) and Board Policy section 5.5.5.5 (“Living Wage Policy”), and their subcontractors, where the contract value is $100,000 or more (“Direct Services Contract”), must comply w ith Division B36 and the L iving Wage Policy and compensa te their employee s in accordance with Division B36 and the Living Wage Policy. Compliance and compensation for purposes of this provision includes, but is not limited to, components relating to fair compensation, earned sick leave, pa id jury duty, fair wo rkweek, worker retention, fair chance hiring, targeted hiring, local hiri ng, protection from ret aliation, and labor pe ace. If CONTRACTOR and/or a subcontractor violate this provision, the Boar d of Supervisors or its designee may, at its sole di scretion, take responsive actions including, but not limi ted to, the following:

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a. Suspen d, modify, or terminate the Direct Services Contract.

b. Require the CONTRACTOR and/or Subcontractor to comply with an appropriate remediation plan developed by the COUNTY.

c. Waive all or part of Division B36 or the Living Wage Policy.

This provision shall not be construed to limit an employee's rights to bring any legal action for violation of the employee's rights under Division B36 or any other applicable law. Further, this provision does not confer any rights upon any person or entity other than the Board of Super visors or its designee to bring any action seeking the cancellation or suspens ion of a COUNTY contr act. By entering into this contr act, CONTRACTOR certifies that it is currently complying with Division B36 and the Living Wage Policy with respect to applicable contrac ts, and warrants that it will continue to comply wi th Division B36 an d the L iving Wage Policy wi th respect to applicable contracts.

10. C OUNTY DATA & CONFIDENTIALITY
a. Definitions: “ COUNTY Data” shall mean data and information received by CONTRACTOR from COUNTY. County Data includes any information or data that is transported across a County network, or that resides in a County -owned information system, or on a network or system under the control and management of a CONTRACTOR for use by COUNTY. “County Confidential Information” shall include all material, non-public information (including material, non-public County Data) appearing in any form (including, without limitation, written, oral or displayed), that is disclosed, directly or indirectly, through any means of communication by COUNTY , its agents or employees, to CONTRACTOR, its agents or employees, or any of its affiliates or representatives.

b. CONTRACTOR shall not acquire any ownership interest in County Data (including County Confidential Information). As between CONTRACTOR and COUNTY, all County Confidential Information and/or County Data shall remain the property of the COUNTY. CONTRACTOR shall not, without COUNTY ’s written permission, use or disclose County Data (including County Confidential Information) other than in the performance of its obligations under this Contract.

c. CONTRACTOR shall be responsible for establishing and maintaining an information security program that is designed to ensure the security and confidentiality of County Data, protect against any anticipated threats or hazards to the security or integrity of County Data, and protect against unauthorized access to or use of County Data that could result in substantial harm or inconvenience to COUNTY or any end users. Upon termination or expiration of this Contract , CONTRACTOR shall seek and follow COUNTY ’s direction regarding the proper disposition of County Data.

d. CONTRACTOR shall take appropriate action to address any incident of unauthorized access to County Data, including addressing and/or remedying the issue that resulted in such unauthorized access, and notifying COUNTY by phone or in writing within 24 hours of any incident of unauthorized access to County Data, DRAFT

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or any other breach in CONTRACTOR’s security that materially affects COUNTY or end users. If the initial notification is by phone, CONTRACTOR shall provide a written notice within 5 days of the incident. CONTRACTOR shall be responsible for ensuring compliance by its officers, employees, agents, and subcontractors with the confidentiality, privacy, and information security requirements of this Contract. Should County Confidential Information and/or legally protected County Data be divulged to unauthorized third parties, CONTRACTOR shall comply with all applicable federal and state laws and regulations, including but not limited to California Civil Code sections 1798.29 and 1798.82 at CONTRACTOR’s sole expense. CONTRACTOR shall not charge COUNTY for any expenses associated with CONTRACTOR’s compliance with these obligations.

e. CONTRACTOR shall defend, indemnify and hold COUNTY harmless against any claim, liability, loss, injury or damage arising out of, or in connection with, the unauthorized use, access, and/or disclosure of information by CONTRACTOR and/or its agents, employees or sub-contractors, excepting only loss, injury or damage caused by the sole negligence or willful misconduct of personnel employed by the COUNTY.

f. CONTRACTOR must require its employees and all persons performing services at its direction to comply with all applicable privacy laws and regulations, including but not limited to the provisions of Sections 827 and 10850 et seq. of the Welfare and Institutions Code (WIC) and California Department of Social Services (CDSS) Manual of Policies and Procedures, Division 19 Regulations.

I. All applications and records concerning any individual receiving services pursuant to this contract are confidential and are not open to examination for any purpose not directly connected with the administration, performance compliance, monitoring or auditing of the program.

II. No person may publish, disclose, use, or permit or cause to be published or disclosed; any confidential information pertaining to services, except as is provided by law.

g. Upon the disclosure of confidential information, inadvertent or otherwise, the COUNTY may terminate this contract immediately and take legal action against CONTRACTOR. Any person who knowingly and intentionally violates the provisions stated above is guilty of a misdemeanor and the COUNTY intends to prosecute such violators to the full extent of the law.

h. CONTRACTOR will inform all employees, agents, officers, and all persons performing services at its direction of the above provisions. All provisions of Article IV, Section 10. survive the termination of this contract.

11. CAL IFORNIA PUBLIC RECORDS ACT
a. The COUNTY is a public agency subject to the disclosure requirements of the California Public Records Act (“CPRA”). If CONTRACTOR’s proprietary information is contained in documents or information submitted to COUNTY, and DRAFT

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CONTRACTOR claims that such information falls within one or more CPRA exemptions, CONTRACTOR must clearly mark such information “CONFIDENTIAL AND PROPRIETARY,” and identify the specific lines containing the information. In the event of a request for such information, the COUNTY will make best efforts to provide notice to CONTRACTOR prior to such disclosure. If CONTRACTOR contends that any documents are exempt from the CPRA and wishes to prevent disclosure, it is required to obtain a protective order, injunctive relief or other appropriate remedy from a court of law in Santa Clara COUNTY before the COUNTY is required to respond to the CPRA request. If CONTRACTOR fails to obtain such remedy within the time the COUNTY is required to respond to the CPRA request, COUNTY may disclose the requested information.

b. CONTRACTOR further agrees that it shall defend, indemnify and hold COUNTY harmless against any claim, action or litigation (including but not limited to all judgments, costs, fees, and attorney’s fees) that may result from denial by COUNTY of a CPRA request for information arising from any representation, or any action (or inaction), by the CONTRACTOR.

12. C
OVID -19 REQUIREMENTS
CONTRACTOR shall comply with all COUNTY requirements in effect relating to COVID-19 for persons who routinely perform services for COUNTY onsite and share airspace with or proximity to other people at a COUNTY facility as part of their services for COUNTY as set forth in a County Health Order (or similar directives) available at https://covid19.sccgov.org/home, and incorporated herein by this reference.

CONTRACTOR shall comply with all reasonable requests by COUNTY for documentation demonstrating Contractor’s compliance with this Section.

13. SURVIVAL
All representations, warranties, and covenants contained in this Contract, or in any instrument, certificate, exhibit, or other writing intended by the parties to survive this Contract, shall survive the termination or expiration of this Contract, including but not limited to all terms (1) providing for indemnification of COUNTY; (2) relating to the California Public Records Act; (3) relating to COUNTY Data; and (4) relating to CONTRACTOR’s obligations upon termination or expiration of this Contract.

14. L

EVINE ACT COMPLIANCE
CONTRACTOR will comply, and will ensure that its agents (as that term is defined under 2 Cal. Code Regs. § 18438.3(a)) and its subcontractors identified in Contractor’s proposal responding to a COUNTY solicitation and/or identified in this Contract (“Subcontractors”) comply, with California Government Code section 84308 (“Levine Act”) and the applicable regulations of the Fair Political Practices Commission concerning campaign disclosure (2 California Code of Regulations sections 18438.1 – 18438.8), which (1) require a party to a proceeding involving a contract to disclose on the record of the proceeding any contribution, as defined by Government Code section 84308(a)(6), of more than $250 that the party or their agent has made within the prior 12 months, and (2) prohibit a party to a proceeding involving a contract from making a contribution, as defined by Government Code section 84308(a)(6), of more than $250 to any COUNTY officer during the proceeding and for 12 months following the final decision in the proceeding. CONTRACTOR agrees to submit disclosures DRAFT

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required to be made under the Levine Act at the Office of the Clerk of the Board of Supervisors website at http://www.sccgov.org/levineact , and shall require Subcontractors to do the same. If this Contract is to be considered or voted upon by the COUNTY’s Board of Supervisors, CONTRACTOR shall complete the Levine Act CONTRACTOR Form: Identification of Subcontractors and Agents, and if applicable, shall ensure that any Subcontractor completes the Levine Act Subcontractor Form:

Identification of Agents, and CONTRACTOR must submit all such forms to the County as a prerequisite to execution of the Contract.

A
rticle V
Insurance Requirements

INSURANCE REQUIREMENTS FOR
STANDARD CONTRACTS ABOVE $100,000

Indemnity
Notwithstanding any other provision of this Agreement, Contractor shall indemnify, release, hold harmless, and defend, with counsel approved by County of Santa Clara (hereinafter “County”), County and its officers, agents, and employees from any claim, demand, suit, judgment, liability, loss, injury, damage, or expense of any kind (including attorneys’ fees and costs) arising out of, or in connection with, performance of this Agreement by Contractor and/or its officers, agents, employees, or sub-contractors, excepting only loss, injury, or damage caused by the sole negligence or willful misconduct of personnel employed by County. It is the intent of the parties to this Agreement to provide the broadest possible coverage for County as allowed by law. Contractor shall reimburse County for all costs, attorneys’ fees, expenses, and liabilities incurred with respect to any litigation or process in which Contractor contests its obligation to indemnify, defend, and/or hold harmless County under this Agreement and does not prevail in that contest.

Insurance
Without limiting the Contractor's indemnification of the County, the Contractor shall provide and maintain at its own expense, during the term of this Agreement, or as may be further required herein, the following insurance coverages and provisions:

A. E vidence of Coverage
Prior to commencement of this Agreement, the Contractor shall provide a Certificate of Insurance certifying that coverage as required herein has been obtained. Individual endorsements executed by the insurance carrier shall accompany the certificate. In addition, a certified copy of the policy or policies shall be provided by the Contractor upon request.

This verification of coverage shall be sent to the requesting County department, unless otherwise directed. The Contractor shall not receive a Notice to Proceed with the work under the Agreement until it has obtained all insurance required and such insurance has been approved by the County. This approval of insurance shall neither relieve nor decrease the liability of the Contractor.

B. Q ualifying Insurers
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All coverages, except surety, shall be issued by companies which hold a current policy holder's alphabetic and financial size category rating of not less than A- V, according to the current Best's Key Rating Guide or a company of equal financial stability that is approved by the County's Insurance Manager.

C. Not ice of Cancellation
All coverage as required herein shall not be canceled or changed so as to no longer meet the specified County insurance requirements without 30 days' prior written notice of such cancellation or change being delivered to the County of Santa Clara or their designated agent.

D. I nsurance Required

1. Commercial General Liability Insurance - for bodily injury (including death) and property damage which provides limits as follows:

Each occurrence - $1,000,000

b. General aggregate - $2,000,000

c. Products/Completed Operations aggregate - $2,000,000

d. Personal Injury - $1,000,000

2. G eneral liability coverage shall include:

a. Premises and Operations

b. Products/Completed

c. Personal Injury liability

d. Severability of interest

3. G eneral liability coverage shall include the following endorsement, a copy of which shall be provided to the County:

Additional Insured Endorsement, which shall read:

“County of Santa Clara, and members of the Board of
Supervisors of the County of Santa Clara, and the officers, agents, and employees of the County of Santa Clara, individually and collectively, as additional insureds.”

Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by the County of Santa Clara, its officers, agents, and employees shall be excess only and not contributing with insurance provided under this policy. Public Entities may also be added to the additional insured endorsement as applicable and the contractor shall be notified by the contracting department of these requirements.

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4. A utomobile Liability Insurance
For bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired vehicles.

4a. Aircraft/Watercraft Liability Insurance (Required if Contractor or any of its agents or subcontractors will operate aircraft or watercraft in the scope of the Agreement)

F
or bodily injury (including death) and property damage which provides total limits of not less than one million dollars ($1,000,000) combined single limit per occurrence applicable to all owned, non-owned and hired aircraft/watercraft.

5. W
orkers' Compensation and Employer's Liability Insurance

a. Statutory California Workers' Compensation coverage including broad form all-states coverage.

b. Employer's Liability coverage for not less than one million dollars ($1,000,000) per occurrence.

E. S pecial Provisions
The following provisions shall apply to this Agreement:

1. The foregoing requirements as to the types and limits of insurance coverage to be maintained by the Contractor and any approval of said insurance by the County or its insurance consultant(s) are not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by the Contractor pursuant to this Agreement, including but not limited to the provisions concerning indemnification.

2. The County acknowledges that some insurance requirements contained in this Agreement may be fulfilled by self -insurance on the part of the Contractor. However, this shall not in any way limit liabilities assumed by the Contractor under this Agreement. Any self-insurance shall be approved in writing by the County upon satisfactory evidence of financial capacity.

Contractors obligation hereunder may be satisfied in whole or in part by adequately funded self-insurance programs or self-insurance retentions.

3. Should any of the work under this Agreement be sublet, the Contractor shall require each of its subcontractors of any tier to carry the aforementioned coverages, or Contractor may insure subcontractors under its own policies.

4. The County reserves the right to withhold payments to the Contractor in the event of material noncompliance with the insurance requirements outlined above.

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F. Fidelity Bonds
Before receiving compensation under this Agreement, Contractor will furnish County with evidence that all officials, employees, and agents handling or having access to funds received or disbursed under this Agreement, or authorized to sign or countersign checks, are covered by a BLANKET FIDELITY BOND in an amount of AT LEAST fifteen percent (15%) of the maximum financial obligation of the County cited herein. If such bond is canceled or reduced, Contractor will notify County immediately, and County may withhold further payment to Contractor until proper coverage has been obtained. Failure to give such notice may be cause for termination of this Agreement, at the option of County.

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CONTRACTOR: City of Campbell

PROGRAM NAME: Senior Nutrition Program – Congregate Meals

1. SER VICE DESCRIPTION
This is a contract between the County of Santa Clara (COUNTY) and City of Campbell (CONTRACTOR) for the purpose of providing meals to persons 60 years of age and older at a congregate meal site, which is to be performed in accordance with the Older Americans Act of 1965, as amended, P.L. 89-73, U.S.C. Section 3000 et seq., and all amendments, rules, and regulations pertaining thereto and may be funded by the Older Americans Act and/or may be funded, in whole or part, by the American Rescue Plan Act of 2021, OARR, CARES , Mello-Granlund Older Californian Act Modernization (MOCA), and/or other state and federal grants to support the Senior Nutrition Program.

Meals will be provided in compliance with the current Senior Nutrition Program Policy and Procedure manual.

Unless otherwise approved in advance by County in writing, all meals will be served as Congregate Meals, Indoor or Outdoor Dining. Each participant must be registered with each service model received.

2. T ERM OF CONTRACT
The term begins on July 1, 2024, and expires on June 30, 2025, unless terminated earlier or otherwise amended.

3. M AXIMUM FINANCIAL OBLIGATION
COUNTY will reimburse CONTRACTOR actual allowable expenditures subject to the provisions of this Contract, for a total not to exceed $104,160.00.

4. BU

DGET CONTINGENCY
This Contract is contingent upon the appropriation of sufficient funding by COUNTY for the services covered by this Contract. Notwithstanding the termination provisions set forth herein, if funding is reduced or depleted by COUNTY for services covered by this Contract , COUNTY has the option to either terminate this Contract without notice (except that necessary to transition clients in the discretion of COUNTY ) and with no liability occurring to COUNTY, or to offer an amendment to this Contract indicating the reduced amount.

5. C OMPENSATION TO CONTRACTOR
a. FEE FOR SERVICE CONTRACT
i. CONTRACTOR will be paid by COUNTY in accordance with Exhibit A :

Program Provisions, Exhibit B: Program Plan & Requirements, Exhibit C:

Budget, and Exhibit D: Logic Model for the performance of services as outlined in this Contract up to the maximum compensation. These costs will also be in accordance with current cost principles and with all other requirements of this contract:

1. For Non-Profit Agencies, OMB Circular A-122.

2. For Local Governments, OMB Circular A-87.

3. For Public and Nonprofit Institutions of Higher Education, OMB Circular A-121.

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4. For Profit Making Organization, 41 CFR Part 1.

ii. If CONTRACTOR provides any tasks, deliverables, goods, services, or other work, other than as specified in this Contract, the same will be deemed to be a gratuitous effort on the part of CONTRACTOR, and CONTRACTOR will have no claim whatsoever against COUNTY.

iii. CONTRACTOR must participate in a closeout period at the end of the COUNTY funding period. During the closeout period all funds awarded to CONTRACTOR must be reconciled to the costs incurred and to the remaining cash, if any. A closeout packet will be provided to CONTRACTOR by COUNTY at the end of the funding period and is due within forty -five (45) days thereafter. If actual cost of providing services base d on Unit Cost per meal is less than the amount reimbursed by COUNTY, CONTRACTOR’S final reimbursement will be reduced by the overpayment received from COUNTY. This provision survives the termination of this Contract.

b. C

OMPENSATION
CONTRACTOR must submit to COUNTY an invoice in a form approved by COUNTY, by the tenth (10th) working day of each month for the month just preceding in which services were performed. The CONTRACTOR will get paid on a monthly basis upon receiving an accurate account and invoice for service rendered, as well as payment for participant and guest contributions as outlined in Exhibit B: Program Plan & Requirements.

i. Prior to submittal, invoices must be certified and signed by a responsible officer of CONTRACTOR with authority to certify that the information submitted by CONTRACTOR is accurate and CONTRACTOR is entitled to payment under the terms of the Contract. COUNTY may rely on said certification in making payment, but this payment will not constitute a waiver of any of COUNTY's legal rights or objections.

ii. Funding for time frames during the year may be allocated to the different funding sources listed in Section 1. In order to ensure continuation of service, CONTRACTOR will not be paid for meals in excess of the number of year-to- date meals listed in the Service Delivery Plan in current fiscal year Budget for the current funding source. Meals that are provided but not reimbursed in a particular month may be reimbursed if claimed on later invoice so long as CONTRACTOR has offered the agreed-upon ser vices continuously and so long as there are available unreimbursed meals available from the current funding source.

iii. If the invoice is in proper form and the items billed are payable under this Contract, COUNTY will make payment to CONTRACTOR.

iv. COUNTY will not be required to make payment if the amount claimed is not in accordance with the provisions of this Contract. All payments under this Contract will be made directly to CONTRACTOR as a corporate entity. Under no circumstances will COUNTY be required to make payments in any amount DRAFT

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pursuant to this Contract to any other parties, including individual employees or creditors of CONTRACTOR.

v. COUNTY is not obligated to reimburse CONTRACTOR for any expenditure not reported to COUNTY within sixty (60) calendar days after the end of the last month of the Contract term.

6. P ARTICIPANT CONTRIBUTIONS
a. CONTRACTOR will submit participant contributions on a monthly basis with the monthly expense claims.

b. CONTRACTOR will deposit all participant contributions in a bank account maintained for the Senior Nutrition Program (SNP). All deposits, withdrawals, and balances for the Senior Nutrition Program must be separately identified.

COUNTY has the right to review all financial records and bank accounts for audit purposes. Participants’ contributions will be collected, counted, and recorded daily by CONTRACTOR. Two persons designated by CONTRACTOR will co-verify the collection and count of participant contributions daily by their signature and date on a participant contribution accounting record. Participant contributions are to be deposited daily when possible, but no less frequently than on a weekly basis.

Participant contributions are to be kept in a secure loc ked location and at night locked in a safe, pending deposit into the Senior Nutrition Program bank account.

7. ADV

ANCE PAYMENTS
a. If CONTRACTOR is not-for-profit who has not had a congregate meals contract with the COUNTY in the last five years, COUNTY, at its discretion may make advance payments under this contract to CONTRACTOR up to a maximum of 25% of the total contract amount and under conditions as the COUNTY may specify. Such advance payments will in no way increase the total maximum financial obligation specified under this contract.

b. CONTRACTOR must meet fidelity bond requirements as specified in Article V F. of this contract prior to receiving advance payment.

c. All advance payments require full repayment prior to the expiration of the contract.

COUNTY will specify repayment method of the advance payment amount by deducting an agreed upon monthly amount from the outstanding balance of the contract until the repayment obligation is fulfilled, or deducting the advance payment amount in a lump sum from the remaining contract balance.

8. A DJUSTMENT TO EXHIBIT B: PROGRAM PLAN & REQUIREMENTS A written adjustment to the Program Plan & Requirements may be approved by the COUNTY Representative, or designee, identified in this Exhibit, without a contract amendment as long as the adjustment reflects approved original program provisions and both parties are notified at least 10 days before the adjusted Program Plan & Requirements begins.

9. AD JUSTMENT TO EXHIBIT D : LOGIC MODEL
A written adjustment to the Logic Model may be approved by the COUNTY Representative, or designee, identified in this Exhibit, without a contract amendment DRAFT

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as long as the adjustment reflects approved original program provisions and both parties are notified at least 10 days before the adjusted Logic Model begins.

10. SER VICE PROVIDED
a. CONTRACTOR must inform COUNTY of services and activities performed under this Contract and accept appropriately referred clients from the COUNTY for contract services as part of CONTRACTOR’s client base.

b. CONTRACTOR must coordinate services with other organizations providing similar services in order to foster community cooperation and avoid unnecessary duplication of services.

c. CONTRACTOR must timely assist in the coordination of and verification of eligibility for mobility management benefits each month.

d. CONTRACTOR must co llaborate with other COUNTY -sponsored organizations targeting services to congregate meal participants to implement those services.

11. C

ONTRACT REPRESENTATIVES
a. CONTRACTOR designates Brian Loventhal, City Manager, as CONTRACTOR’s representative for the purpose of performing the services as required by this Contract. Unless otherwise indicated in writing, the above-named person has the primary authority and responsibility to carry out this Contract.

b. COUNTY designates the Director of Social Services Agency, or designee, as its representative for the purpose of managing the services performed pursuant to this Contract.

12. NO
TICES
All notices prescribed by this Contract will be in writing and deemed effective if sent by certified mail or registered mail and properly deposited with the United States Postal Service, postage prepaid with return receipt requested and addressed as follows:

a. To COUNTY: Social Services Agency
Office of Contracts Management
333 West Julian Street
San Jose, California 95110-2335

b. To CONTRACTOR: City of Campbell
Brian Loventhal, City Manager
70 N 1
st Street
Campbell, CA 95008

13. C OUNTY’S CONTRACT TRANSITION PROCESS
CONTRACTOR agrees to provide all information deemed necessary by COUNTY for use in subsequent procurement cycles.

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CONTRACTOR: City of Campbell

PROGRAM NAME: Senior Nutrition Program – Congregate Meals

1. SER VICE DESCRIPTION & EXPECTED OUTCOME
CONTRACTOR will work with the Social Services Agency – Senior Nutrition Program (COUNTY) and other community partners to ensure that the seniors receive nutritious and healthy meals at CONTRACTOR’s nutrition site(s). The PROGRAM provides seniors and older adults of Santa Clara County access to healthy, nutritious meals and the opportunity to socialize, take classes, and access other services. CONTRACTOR will perform services in compliance with the Senior Nutrition Program, Congregate Policy & Procedures Manual, and any updates thereto.

2. PER

MITS AND LICENSES
CONTRACTOR will obtain all permits and licenses necessary to the performance of this contract will assure that its subcontractors obtain the same. The CONTRACTOR will pay all normal fees for permits, licenses, inspections or any other certification or service required in the performance of this contract.

3. E LIGIBLE INDIVIDUALS
Persons who are eligible for meals and services under this contract are those persons who are 60 years of age or older or who are spouses of persons who are 60 years of age or older. Meals may be made available to disabled individuals who have not attained 60 years of age but who reside in housing facilities occupied primarily by the elderly at which congregate nutrition services are provided, or individuals with disabilities who reside at home with and accompany older individuals who are eligible for services. Priority will be given to those older persons in greatest social and economic need with particular attention to seniors who are age 75 or older, low-income, and/or living alone, as defined by the Older Americans Act of 1965.

4. MEALS
a. Meals served by CONTRACTOR must provide at least one-third (1/3rd) of the current recommended dietary allowance specified by the Food and Nutrition Board of the National Academy of Sciences – National Research Council.

b. Menus will be planned by CONTRACTOR in cycles, the minimum period being five (5) weeks. Such menus must be planned in accordance with COUNTY requirements. Such menus will be submitted to COUNTY three (3) weeks prior to initial use. Client-facing menus will be posted in a conspicuous location at the meal site at least one (1) week in advance of use.

c. Table settings will be of reasonable quality. If disposable dinnerware is used, it will be of sturdy quality. Only offer single-use items needed to eat or pre vent spillage of the ready -to-eat food. Only provide single-use accessories to participants upon request. Samples of single-use items are forks, knives, spoons, and sporks. Compostable serve ware is highly encouraged.

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5. CONGREGATE MEAL SITES
a. CONTRACTOR will provide congregate meals at the meal site(s) , days, and times indicated in current fiscal year Budget. Notwithstanding, CONTRACTOR may make minor changes to the service days and times listed in current fiscal year Budget with prior written approval of COUNTY.

b. CONTRACTOR may not relocate the meal site or add a meal site without prior notification, inspection, and approval by COUNTY. Relocation or addition of a meal site without the prior approval of the COUNTY may be considered a breach of the provisions of this contract. COUNTY may suspend or withhold payments, or terminate the contract if the relocation affects any of the provisions of the contract including, but not limited to the following:

i. The relocation or addition reduces or terminates the provision of services to seniors in the geographic area served by this contract.

ii. The relocation or addition changes the service area served by this contract.

iii. The relocation or addition does not serve or give priority to older persons in the greatest social or economic need as defined by the Older Americans Act of 1965 as amended.

c. The site must have adequate lighting and ventilation and must meet all applicable health, fire, safety and sanitation regulations. CONTRACTOR must obtain current certificates from appropriate public officials indicating the site is in compliance with health and fire regulations.

d. CONTRACTOR shall ensure that a pleasant dining atmosphere is maintained and that there is adequate space for the equipment of participants, such as canes, crutches and wheelchairs.

e. There will be no architectural barriers which would prevent an eligible individual from having access to the meal site facility.

f. Innovative services may be added to the PROGRAM during the term of this contract, or upon an extension of this contract, upon written approval of the COUNTY.
g. If a site is designated as a catered site in current fiscal year Budget, upon written approval from COUNTY and upon obtaining all required governmental approvals, CONTRACTOR may switch to being a cook-on-site location. In the event of this switch, CONTRACTOR’s per -meal rate will be changed to the standard cook on site per-meal rate if different than the catered meal rate.

6. NU

MBER OF MEALS, SERVING DAYS, AND HOLIDAYS
a. CONTRACTOR will provide the number of meals as specified in current fiscal year Budget. If demand by eligible individuals in the first six (6) months of this Contract does not result in CONTRACTOR providing the average number of meals per day specified in current fiscal year Budget, COUNTY may terminate this Contract. Prior to termination, COUNTY and CONTRACTOR may attempt to renegotiate this Contract to allow CONTRACTOR to reduce the average DRAFT

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number of meals to be provided per day. If CONTRACTOR provides additional meals and such additional meals will cause CONTRACTOR to exceed the Maximum Financial Obligation of this Contract, such additional costs will be the sole expense of CONTRACTOR, unless the parties agree and execute a Contract Amendment.

b. CONTRACTOR will be paid for the number of meals provided to eligible participants at a meal site, not the number of meals prepared. COUNTY will not reimburse meals served that do not meet the dietary requirements in Section 4(a).

c. CONTRACTOR must open its Nutrition Site(s) for the number of service days specified in current fiscal year Budget. CONTRACTOR must open its Nutrition Site(s) at minimum the number of serving days indicated each week except for holidays. Should CONTRACTOR close its Nutrition Site(s) due to unforeseen circumstances, CONTRACTOR will notify COUNTY immediately and work collaboratively to reschedule the day(s) that the Nutrition Site(s) was closed.

Should CONTRACTOR close their Nutrition Site(s) due to foreseen circumstances and not be able to reschedule the day(s) of services, CONTRACTOR will not be reimbursed for the number of meals allocated to the serving day(s) that the Nutrition Site(s) was closed.

7. ADV

ISORY COUNCIL
CONTRACTOR will ensure that an election is held to elect a participant to represent each of its nutrition sites on the countywide program Advisory Council. It will be the responsibility of the program Advisory Council to advise the COUNTY on policy matters relating to the delivery of the congregate nutrition services throughout the COUNTY program area.

8. SU

PPORTIVE SERVICES
a. CONTRACTOR will provide supportive services, to the extent that such services are needed and are not already available from third parties and accessible to individuals participating in the Congregate Meals Program.

Supportive services may include:

i. Transportation of eligible individuals to and from congregate meal sites so that nutrition and other services will be accessible to those eligible individuals living within the program area who, because of lack of mobility or physical or mental handicap, would otherwise be unable to participate in the program;

ii. Information and referral services designed to provide eligible individuals with current information of, and referral to, all appropriate services to meet their needs;

iii. Health and welfare counseling services designed to assist eligible individuals in dealing with the problems and stresses that interfere with normal health and social functioning. CONTRACTOR may provide such services through person-to-person assistance from trained counselors or referrals to other resources;
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iv. Nutrition education through a formal program of regularly scheduled meetings to make available pertinent facts related to nutritional need;

v. Recreation activities designed to foster the health and social well-being of program participants through social interaction and satisfying use of free time;

vi. Outreach activities to assure maximum participation of hard-to -reach and other eligible individuals.

b. CONTRACTOR will report the supportive services provided at its meal site(s) to the COUNTY in the format requested by the COUNTY and whether the service is provided by CONTRACTOR or another entity at least annually, or more often, as requested by the COUNTY. COUNTY may request this information from CONTRACTOR up to once per quarter.

9. FOOD

INVENTORY
CONTRACTOR will develop a written plan for conducting food inventories. The plan will include the procedures for conducting food inventories, identify persons responsible for conducting the inventory, and set the schedule for completing the inventories. The plan will also include a description of the "First -in-First Out" food rotation system that will be used to ensure stored goods are rotated to prevent deterioration. CONTRACTOR will provide COUNTY with a copy of its food inventory plan and completed food inventories, upon request.

10. PEST

CONTROL
CONTRACTOR is required to follow the pest control requirements in the current Senior Nutrition Program, Congregate Policy & Procedures Manual. In addition, if a pest issue is identified, COUNTY reserves the right to require CONTRACTOR to take corrective action to remedy the issue or require any other action from CONTRACTOR necessary to protect the health and welfare of participants.

11. DA TA COLLECTION AND PRIVACY
a. At intervals prescribed by the COUNTY and, on forms provided by COUNTY, CONTRACTOR will collect program data and information relating to nutrition risk assessments, registered site participants, meals, use of services and program contributions. CONTRACTOR will also be required to collect program data through the use of electronic collection methods. Such methods may include the use of computers, scanners, or other means. CONTRACTOR must comply with collection requirements as directed by COUNTY.

b. Unless otherwise specified, COUNTY will provide CONTRACTOR with the equipment needed to collect data by electronic means (“Scanning Equipment”).

If COUNTY provides CONTRACTOR with Scanning Equipment, COUNTY will be considered legal owner and Scanning Equipment must be returned to COUNTY immediately upon termination or expiration of this agreement.

c. CONTRACTOR agrees to provide information deemed necessary by COUNTY such as providing SNP a Budget Justification workbook with line- item budget, DRAFT

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detailed staffing information, and a list of other agency resources being contributed towards the program.

d. CONTRACTOR must submit a completed and signed Santa Clara Senior Nutrition Program – Monthly Report, New Client Log, Monthly Scanner Data Report for the prior month by the fourth (4th) working day of the current month to their assigned registered dietitian.

e. No later than the second time an eligible participant attends a congregate meal site operated by CONTRACTOR, CONTRACTOR must have the participant complete a registration form with participant’s information. Registration forms must be submitted online to the designated COUNTY staff person on an ongoing basis for new and updated registrations.

f. Quarterly Report. Quarterly Reports with output and outcome data must be turned in with September, December, March, and July invoices. Quarterly Reports must be prepared on the form provided by the COUNTY. Submission of the Quarterly Report is required before the corresponding monthly invoice can be paid.

g. Within 30 days of executing this agreement, and annually thereafter if the term of this agreement is extended, all employees, volunteers, subcontractors, or agents of CONTRACTOR who handle confidential client information, including but not limited to registration forms, must complete the information security and privacy presentation online training provided by the California Department of Aging (currently available at:
https://www.aging.ca.gov/ProgramsProviders/Information_Security_and_Priv acy/Presentation/index.html). Upon completion, evidence must be submitted to COUNTY to provide to Sourcewise.

12. P ARTICIPANT CONTRIBUTION PRINCIPLES
a. CONTRACTOR will provide meals to eligible individuals regardless of their ability to contribute for all or part of their meals. Recipients are requested to make a financial contribution to offset the cost of the meals. Suggested contribution for congregate meals is $3.00 per meal. If CONTRACTOR also provides home delivered meals, the suggested contribution is $3.00 per meal.

Contributions are confidential. CONTRACTOR will not disclose records of the amount of contribution received or the name of contributor to third parties without written permission of the contributor. COUNTY has the right to review CONTRACTOR'S contribution records for audit purposes. Payment of the suggested contribution is not a condition for the receipt of meals.

b. CONTRACTOR will submit participant contributions monthly with the monthly reimbursement claims. One hundred percent of these contributions must be submitted to COUNTY.

13. V

OLUNTEER, GUEST, AND STAFF MEALS
a. Volunteer Meals: A volunteer under the age of 60 who provides services during meal hours may be offered a meal, if doing so will not deprive an older individual of a meal. Volunteers under age 60 who receive a full meal that DRAFT

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meets the requirements in Section 4 must pay a $3.00 fee and the fee must be included with the participant contributions and returned to the COUNTY.

CONTRACTOR must record the number of volunteer meals served.

CONTRACTOR will be reimbursed for volunteer meals provided.

b. Guest Meals: A guest under the age of 60 may be offered a meal during meal hours if doing so will not deprive an older individual of a meal or add to the cost of meals prepared. A guest must pay a fee of at least $8.00-$9.00 or up to the actual cost of the meal served, as specified in current fiscal year Budget.

CONTRACTOR must record the number of guest meals served and keep guest fees separate from participant contributions. CONTRACTOR may keep guest fees received. The cost of providing guest meals may not be included in the quarterly reconciliation.

c. Staff Meals: Nutrition services staff under the age of 60 may receive a meal if doing so will not deprive an older individual of a meal or add to the cost of meals prepared. CONTRACTOR must record the number of nutrition services staff meals served. The cost of providing staff meals may not be included in the quarterly reconciliation.

14. M

ANDATORY ATTENDANCE
CONTRACTOR must have a representative attend every required training and meeting offered by the COUNTY that is specific to the Senior Nutrition Program.

15. P

URCHASES
COUNTY may require CONTRACTOR, by written notice, to obtain approval of COUNTY for all purchases of food and materials. Approval will not be withheld by COUNTY except for good cause.

16. N ON -EXPENDABLE PROPERTY
Any acquisition by CONTRACTOR of non-expendable property with a retail purchase price in excess of five -thousand dollars ($5,000.00), that is required by CONTRACTOR for performance of this Contract, must require prior written approval of COUNTY. COUNTY will be the legal owner of all equipment that is purchased with COUNTY funds. COUNTY may take possession of its equipment if it is not being used primarily for program purposes and will determine disposition of that equipment upon expiration or termination of this contract.

17. CO

MPETITIVE BID REQUIREMENTS
a. All equipment purchases by the CONTRACTOR exceeding five -thousand dollars ($ 5,000.00) must be procured through a competitive process in compliance with Sourcewise’s bidding procedures unless services or materials can be obtained only from a single source. Any procurement exceeding ten- thousand dollars ($10,000.00) must also comply with the requirements of Office of Management and Budget Circular Uniform Guidance.

b. Unless CONTRACTOR uses the COUNTY’s designated vendor, prior to making any equipment purchase that has a value of five -thousand dollars ($5,000.00) or more, CONTRACTOR will submit to COUNTY evidence that it has received a minimum of three (3) bids for such subcontract and justification DRAFT

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for selection of the successful bidder or submit documentation to support the use of the sole supplier. Record shall be maintained by CONTRACTOR showing the parties solicited and the bids submitted.

18. OV ERTIME WORK
Overtime work expenditures that are incurred by the CONTRACTOR will not be paid by reducing services or meals under this contract.

19. RE STRICTION OF DISCLOSURES
Any reports, analysis, studies, drawings, information or data generated as a result of this contract are to be provided to COUNTY prior to public dissemination.

20. M

EAL VERIFICATION AND ERROR RATES
CONTRACTOR must create and provide accurate electronic and paper documentation for the total number of meals provided and invoiced each month.

Paper d ocumentation of the number of monthly meals provided includes both monthly reports, New Client Logs, Guest and Staff meal logs, and daily sign-in sheet for the meals distributed. Monthly reports are submitted to the COUNTY per section 11(d) above. Sign-in sheets are described in the Senior Nutrition Program policies and procedures manual and must be submitted to COUNTY monthly. Sign-in sheets and New Client Logs are verification of the number of meals included on the monthly reports and the total number of signatures and reported meals must match.

COUNTY will not reimburse for meals reported on the monthly report for which there is no signature on a sign-in sheet or signatures on the new client log.

Electronic documentation is described in section 11(a) above and includes electronic meal data collected through the use of a scanning device or entry into a COUNTY- provided system. Electronic data report may be accepted by COUNTY as back -up documentation for the monthly report in lieu of a sign- in sheet. COUNTY will not reimburse for meals reported on the monthly report for which there is no electronic documentation unless otherwise verified in a manner acceptable to COUNTY, such as with a new client log.

Electronic data also must be reconcilable to Sourcewise’s AssureCare database. If electronic documentation is not reconcilable to Sourcewise’s Assurecare database an error rate is created. If CONTRACTOR’s electronic data exceeds an error rate of 5%, COUNTY may withhold a percentage of CONTRACTOR’s invoice equivalent to the percentage of the error rate exceeding the 5% threshold. For example, if CONTRACTOR has an error rate of 23%, COUNTY may withhold 18% (23% - 5%) of CONTRACTOR’s invoice for that month. However, if Sourcewise reimburses COUNTY for the meals that create this error rate, then the County will not withhold any percentage of CONTRACTOR’s invoice for the error rate but still may withhold payment for the other documentation issues listed in this section.

21. GR

IEVANCE POLICY
a. CONTRACTOR must establish a written grievance process for reviewing and attempting to resolve complaints of older individuals receiving services funded by this Contract which complies with Sourcewise’s requirements and the Older DRAFT

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Americans Act, Section 315(b)(4). At a minimum, the process shall include all of the following:

i. Time frames within which a complaint will be acted upon.

ii. Written notification to the complainant of the results of the review, including a statement that the complainant may appeal to Sourcewise if dissatisfied with the results of CONTRACTOR’s review.

iii. Confidentiality provisions to protect the complainant’s rights to privacy.

Only information relevant to the complaint may be released to the responding party without the older individual’s consent.

b. CONTRACTOR shall notify older individuals of the grievance process available to them by:

i. Posting notification of the process in visible and accessible areas, such as the bulletin boards in multipurpose senior centers or areas in which there are a substantial number of older adults. For individuals who are non-English speaking, the notification shall also be posted in the primary language of a significant number of older individuals.

ii. Advising homebound older individuals of the process either orally or in writing upon CONTRACTOR’s contact with the individuals.

c. Complaints may involve, but not be limited to, any or all of the following:

i. Amount or duration of a service.

ii. Denial or discontinuance of a service.

iii. Dissatisfaction with the service being provided or with the service provider. If the complaint involves an issue of professional conduct that is under the jurisdiction of another entity, such as the California Medical Board or the State Bar Association, the complainant shall be referred to the proper entity.

iv. Failure of the service provider to comply with any of the requirements set forth in California Department of Aging regulations or in the contract with Sourcewise.

d. Nothing in this Grievance policy shall be construed as prohibiting older individuals from seeking other available remedies, such as presenting their complaints at an open meeting of CONTRACTOR’s governing board.

e. Participants shall notify the COUNTY in writing within ten working days after statement has been issued to complainant detailing the complaint, resolution and copy of the statement sent to the complainant. The address for mailing is 353 W. Julian Street, 4
th Floor, San Jose, CA 95110.

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f. If a participant is dissatisfied with the results of the review, they shall notify Sourcewise in writing within ten working days after statement has been issued to complainant detailing the complaint, resolution and a copy of the statement sent to complainant. The address for mailing is 3100 De La Cruz B oulevard, Suite 310, Santa Clara, CA, 95054.

22. F ISCAL YEAR CLOSEOUT SUBMISSION
Due to fiscal reporting deadlines imposed by the California Department of Aging and Sourcewise, CONTRACTOR must submit requested fiscal year- end closeout documents to COUNTY accounting staff by July 3 of current fiscal year.

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior Nutrition Program Contract FY County of Santa Clara
Social Services Agency
FY 2024-25 Exhibit C
Master Budget
Agency Name:

Program:

A
Budget
Per Meal Reimbursement Rate
Contract Total
Annual Units Rate Total
City of Campbell
Congregate Meals - Combined Agency Budget
B C D
$104,160.00
17,360 $6.00 $104,160.00
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Social Services Agency
FY 2024-25 Exhibit C
Site 1 - Service Plan & Budget
Agency Name:

Site:

A
Budget
Per Meal Reimbursement Rate*
Grand Total
Weekly Service Plan Mon Tues Weds Thurs Fri Sat Sun
Service
Days
Service Start 11:00 AM 11:00 AM 11:00 AM 11:00 AM 11:00 AM N/A N/A Service End 12:00 PM 12:00 PM 12:00 PM 12:00 PM 12:00 PM N/A N/A Total Hours 1.00 1.00 1.00 1.00 1.00 N/A N/A 5
Monthly Service Delivery Plan Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total Possible Serving Days 23 22 21 23 21 22 23 20 21 22 22 21 261 Unpaid Days Off 0 0 0 0 1 0 0 0 1 0 0 0 2
Holidays 1 0 1 0 2 3 2 1 0 0 1 0 11
Actual Serving Days 22 22 20 23 18 19 21 19 20 22 21 21 248 Budgeted Monthly Meals
(Serving Days x # of Daily Meals) 1540 1540 1400 1610 1260 1330 1470 1330 1400 1540 1470 1470 17360 YTD Budgeted Meals** 1540 3080 4480 6090 7350 8680 10150 11480 12880 14420 15890 17360 *Only meals provided to eligible participants which meet dietary requirements will be reimbursed. The maximum number of meals reimbursed by the County will not exceed the YTD number of budgeted meals based on County-approved holiday schedule. Meals provided in a previous month but not reimbursed may be billed in a subsequent month. **Food costs must equal at least 25% less $.25 of the Total Contract Amount. Meals that are unserved will not be reimbursed.

Rate
$6.00
Total Contract
Amount**
$104,160.00
$104,160.00
70 248 17,360
City of Campbell
Site Preparation Type
Catered
Campbell

E FB C D
# of
Daily Meals
# of
Serving Days Annual Units
Contract between the County of Santa Clara and City of Campbell Page 2 of 3 DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior County of Santa Clara
Social Services Agency
FY 2024-25 Exhibit C
Site 1 - Staffing
Agency Name: City of Campbell
Site: Campbell
# Staff Job Title Activities Staff Person Will Perform
1 Senior Services Supervisor Responsible for overall administration of the Campbell SNP. Prepares program budget and quarterly reports, supervises Site Manager, and serves as liaison to the County. 2 Site Manager Responsible for registration, orders meals, supervises the Site Server, ensures food safety practices are implemented, and prepares monthly reports.
3 Site Server Checks in catered meals, take food temperatures, plates and serves meals, and sanitizes the kitchen.

Provide the following information for each staff member who would be assigned to fulfill the terms of contract.

Contract between the County of Santa Clara and City of Campbell Page 3 of 3 DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals (Senior Santa Clara County
Social Services Agency
FY 2024-25 Exhibit D: Logic Model
Logic Model - Agency Name: City of Campbell
A. Contract Goal:

B. Situation C. Activities/Services
D1. # of
unduplicated
clients/families
served per FY
D2. # of
Outputs
per FY
D3. Output E. Short/Long Term
Outcome Measures
The Campbell SNP provides nutritious
meals, socialization, and activities to
keep seniors active and engaged in
the community.
70 100 Socialization Activity
Provide nutritious, hot meals to older
adults age 60+. 120 17,360 Hot Meals
SNP Congregate Meals
Provide nutritious meals, opportunities to socialize, transportation, and resources to older adults across Santa Clara County.

Lack of food access,
financial instability, and
social isolation are pervasive
issues among the older adult
community. In order to meet
the needs of this community
services need to include
ethnically diverse cuisine
served in locations in
proximity to low-income
neighborhoods, innovative
service models that bring the
food to the people,
transportation options, and
additional safety net
resources. These services
are a vital component to
keeping people healthy and
living independently.

By June 30, 2025, at least 50% of eligible older adult
congregate meal participants will have participated in at least one activity offered at the meal site.

Contract between the County of Santa Clara and City of Campbell DRAFT

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Attachment: DRAFT FY25 Delegated PRC Single Board Contract - City of Campbell - Congregate Meals

City
Council
Report

TITLE: Agreement with MoonChef, LLC to Provide Catered Meals for the Senior Nutrition Program for Fiscal Year 2024 -25 (Resolution/Roll Call Vote)

RECOMMENDED ACTION

That the City Council adopt a Resolution approving an agreement and authorizing the City Manager to execute the agreement with MoonChef, LLC to provide catered meals for the Senior Nutrition Program during Fiscal Year 2024-25.

BACKGROUND

The City of Campbell (City) has partnered with MoonChef, LLC since 2017 to provide Asian cuisine catered meals for the City’s Senior Nutrition Program. In addition, MoonChef, LLC is designated as an approved caterer by the County of Santa Clara (County), through the County’s competitive bid process, for the provision of food services for both the City’s and the County’s Senior Nutrition Programs.

On November 15, 2017, the City entered into the first agreement (Agreement) with MoonChef, LLC to provide catered meals for the City’s Senior Nutrition Program following the existing Asian cuisine caterer providing notice of termination of services.

MoonChef, LLC provided catered meals once a week from November 15, 2017 to June 30, 2018. The Agreement was renewed on July 1, 2018 to indicate that MoonChef would provide catered meals two days per week at a rate of $5.20 per meal from July 1, 2018 through June 30, 2019. Since then, a new agreement with MoonChef, LLC has been entered into annually at the start of each fiscal year. Specifically, subsequent agreements specified MoonChef, LLC would provide catered meals two days a week in Fiscal Year 2020 at a rate of $5.41 per meal; two days a week in Fiscal Year 2021 at a rate of $5.38 per meal; and two days a week in Fiscal Year 2022 at a rate of $5.60 per meal; Subsequent agreements specified MoonChef, LLC would provide catered meals three days a week in Fiscal Year 2023 at a rate of $5.81 per meal ; and three days a week in Fiscal Year 2024 at a rate of $5.98 per meal.

DISCUSSION

The City would like to continue using MoonChef, LLC to provide catered meals for the City’s Senior Nutrition Program through Fiscal Year (FY) 2024-25 and continue the meal service three days per week. Therefore, staff is recommending the City enter into a new Item: 7
Category: CONSENT CALENDAR
Meeting Date: June 4, 2024
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MoonChef Contract FY 2024-2025 Page 2 of 3
agreement with MoonChef, LLC to increase the rate charged from $5.98 per meal to $6.16 per meal, for a tota l compensation amount of $64,249.00 ; and to provide a new term for services from July 1, 2024 through June 30, 2025.

FISCAL IMPACT

The City shares the cost for the Senior Nutrition Program’s catered meals with the County of Santa Clara. The total FY 2024 -25 meal quantities from MoonChef, LLC will be directed by City staff based on need and are estimated to cost the City approximately $64,249.00 in the upcoming fiscal year. Funds have been requested in the FY 2024 -25 Proposed Operating Budget and are included in the Recreation & Community Services Department, Senior Nutrition Division budget (Acct No. 101.525.7432).

ALTERNATIVES

Do not authorize the City Manager to execute an agreement with MoonChef, LLC and not be able to provide meals to seniors in need.

Do not authorize the City Manager to execute a new agreement and provide alternative direction to staff.

Prepared by:

Tina Wong-Erling, Senior Services
Supervisor

Reviewed by:

Natasha Bissell, Recreation and
Community Services Director

Approved by:

Brian Loventhal, City Manager

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MoonChef Contract FY 2024-2025 Page 3 of 3

Attachment:
a. Council Resolution MoonChef FY 2024-25
b. FY 25 SNP Budget Justification
c. 2024-25 Contract MoonChef
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RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

APPROVING AN AGREEMENT AND AUTHORIZING THE CITY MANAGER

TO EXECUTE THE AGREEMENT WITH MOONCHEF, LLC, TO PROVIDE CATERED MEALS FOR THE SENIOR NUTRITION PROGRAM FOR FY 2024- 25 WHEREAS, the City of Campbell recognizes the need for a nutritious meal program for senior citizens in Campbell; and

WHEREAS, MoonChef, LLC has been designated by the County as an approved caterer for meals for the City/County Nutrition Program for Fiscal Year 2024-25; and

WHEREAS, the Agreement with MoonChef, LLC is required to clarify the obligations of each party to increase the frequency with which meals are provided by MoonChef, LLC through the City’s Senior Nutrition Program three days per week; to increase the rate charged fr om $5.98 per meal to $ 6.16 per meal, for a total compensation amount of $ 64,249.00; and to provide a new term for MoonChef, LLC to provide these services from July 1, 2024 through June 30, 2025.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby approve an agreement and authorize the City Manager to execute the agreement with MoonChef, LLC to provide catered meals for the Senior Nutrition Program for Fiscal Year 2024-25.

PASSED AND ADOPTED this 4th day of June 2024 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

________________________
Susan M. Landry, Mayor

ATTEST:

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Attachment: Council Resolution MoonChef FY 2024-25 (MoonChef Contract FY 2024-2025) __________________________
Andrea Sanders, City Clerk

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Attachment: Council Resolution MoonChef FY 2024-25 (MoonChef Contract FY 2024-2025) Attachment B

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Attachment: FY 25 SNP Budget Justification (MoonChef Contract FY 2024-2025)

1 AGREEMENT FOR SENIOR NUTRITION SERVICES

BETWEEN

CITY OF CAMPBELL

AND MOONCHEF, LLC

THIS AGREEMENT is made and entered on July 1, 2024 (“Effective Date”), by and between the CITY OF CAMPBELL, a municipal corporatio n of the State of California (hereinafter “CITY”) and MoonChef, LLC (hereinafter “CONTRACTOR”).

RECITALS

A. Whereas, the Senior Nutrition Program is administered by the Santa Clara County Social Service Agency and provides home delivered and congregate meals to eligible seniors sixty (60) years of age and older in Santa Clara County; and

B. Whereas, CITY and Santa Clara County entered into a Senior Nutrition Program Contract dated July 1, 2024 (“County Contract”) to provide congregate meals at the Campbell Adult Center located at 1 W. Campbell Ave. Campbell, CA 95008; and

C. Whereas, the County Contract is amended on an annual basis to reflect the annual approved budget for the congregate meals in the City of Campbell and may be amended from time to time as required by Santa Clara County; and

D. Whereas, CITY requires professional services for the delivery of meals for the Senior Nutrition Program located at the Campbell Adult Center, 1 W. Campbell Ave. Campbell, CA 95008, in accordance with the County Contract;

NOW, THEREFORE, in consideration of the mutual covenants set forth in this Agreement and for valuable consideration, receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

SECTION 1. SCOPE OF SERVICES.

CONTRACTOR shall perform those services specified in detail in EXHIBIT A, entitled “SCOPE OF SERVICES”, which is attached hereto and incorporated herein.

SECTION 2. TERM OF AGREEMENT.

This AGREEMENT shall become effective retroactively on the Effective Date and automatically terminates on June 30, 202 5 (“Term”), subject to the provisions of SECTION 11 of this AGREEMENT.

SECTION 3. SCHEDULE OF PERFORMANCE.

The services of CONTRACTOR are to be completed as set out in EXHIBIT A, and time is of the essence in this AGREEMENT.

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2 SECTION 4. COMPENSATION.

A. The compensation to be paid to CONTRACTOR shall not exceed Six Dollars and Sixteen Cents ($ 6.16) per mea l for the Term . The rate and schedule of payment is set out in EXHIBIT B, entitled “COMPENSATION,” which is attached hereto and incorporated herein.

SECTION 5. METHOD OF PAYMENT.

Each month, CONTRACTOR shall furnish to the CITY a statement of the work performed for compensation during the preceding month.

SECTION 6. INDEPENDENT CONTRACTOR.

It is under stood and agreed that CONTRACTOR , in the performance of the work and serv ices agreed to be performed by CONTRACTOR, shall act as and be an independent contractor and not an agent or employee of CITY; and as an independent contractor, CONTRACTOR shall obtain no rights to retirement benefits or other benefits which accrue to CITY's employees, and CONTRACTOR hereby expressly waives any claim it may have to any such rights.

SECTION 7. ASSIGNABILITY.

The parties agree that the expertise and experience of CONTRACTOR are material considerations for this AGREEMENT. CONTRACTOR shall not assign or transfer any interest in this AGREEMENT nor the performance of any of CONTRACTOR’S obligations hereunder, without the prior written consent of CIT Y, and any attempt by CONTRACTOR to so assign this AGREEMENT or any rights, duties or obligations arising hereunder shall be void and of no effect.

SECTION 8. INDEMNIFICATION.

CONTRACTOR agrees to indemnify, defend and hold harmless the CITY, its officers, agents and employees to the fullest extent allowed by law from any and all claims, actions, causes of action, losses, damages, liabilities and costs of every nature, including all claims, actions, causes of action, losses, damages, liabilities for property damage, bodily injury, or death, and all costs of defending any claim, action or cause of action, caused by, arising out of, or resulting from, or alleged to have been caused by, arise out of, or result from, in whole or in part, CONTRACTOR’S performance of this AGREEMENT, except for any claims, actions, causes of action, losses, damages, costs or liabilities proximately caused by the sole negligence or willful misconduct of CITY.

The foregoing indemnity provision is intended to fully allocate the parties’ risk of liability to third- parties; and there shall be no rights to indemnity or contribution, in law or equity or otherwise between the parties that are not set forth in this sec tion. C ONTRACTOR waives all rights to subrogation for any matters covered by this provision. CONTRACTOR’S responsibility for such defense and indemnity obligations as set forth in this provision shall survive the terminatio n or completion of this AGREEMENT for the full period of time allowed by law.

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3 SECTION 9. INSURANCE REQUIREMENTS.

CONTRACTOR agrees to have and maintain the policies set forth in EXHIBIT C, entitled “INSURANCE,” which is attached hereto and incorporated herein. All policies, endorsements, certificates and/or binders shall be subject to approval by the Director of Finance or the Director’s authorized designee (“Risk Manager”) of the City of Campbell as to form and content. These requirements are subject to amendment or waiver if so approved in writing b y the Risk Manager.

CONTRACTOR agrees to provide CITY with a copy of said policies, certificates and/or endorsements before work commences under this AGREEMENT.

SECTION 10. NONDISCRIMINATION.

CONTRACTOR shall not discriminate, in any way, against any person on the basis of race, sex, color, age, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity, or national origin or any other protected class, in connection with or related to the performance of this AGREEMENT.

SECTION 11. TERMINATION.

A. Either party may terminate this AGREEMENT upon 30 days written notice prior to the start date of meal delivery covered by this AGREEMENT.

B. If CONTRACTOR fails to perform any of its material obligations under this AGREEMENT, in addition to all other remedies provided by law, CITY may terminate this AGREEMENT immediately upon written notice.

C. CITY's Purchasing Agent is empowered to terminate this AGREEMENT on behalf of CITY.

D. In the e vent of termination, CONTRACTOR shall deliver to CITY copies of all reports, documents, and other work performed by CONTRACTOR under this AGREEMENT, and upon receipt thereof, CIT Y shall pay CONTRACTOR for services performed and reimbursable expenses incurred to the date of termination.

SECTION 12. GOVERNING LAW.

CITY and CONTRACTOR agree that the law governing this AGREEMENT shall be that of the State of California.

SECTION 13. COMPLIANCE WITH LAWS.

CONTRACTOR shall comply with all applicable laws, ordinances, codes and regulations of the federal, state and local governments.

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4 SECTION 14. CONFIDENTIAL INFORMATION.

All data, documents, discussions or other information d eveloped or received by or for CONTRACTOR in performance of this AGREEMENT are confidential and not to be disclosed to any person except as authorized by CITY, or as required by law.

SECTION 15. OWNERSHIP OF MATERIALS.

All reports, documents or other materials developed or discovered by CONTRACTOR or any other person engaged directly or indirectly by CONTRACTOR to perform the services required hereunder shall be and remain the property of CITY without restriction or limitation upon their use.

SECTION 16. WAIVER.

CONTRACTOR agrees that waiver by CITY of any breach or violation of any term or condition of this AGREEMENT shall not be deemed to be a waiver of any other term or condition contained herein or a waiver of any subsequent breach or violation of the same or any other term or condition.

The acceptance by CITY of the performance of any work or services by CONTRACTOR shall not be deemed to be a waiver of any term or condition of this AGREEMENT.

SECTION 17. CONTRACTOR'S BOOKS AND RECORDS.

A. CONTRACTOR shall maintain any and all ledgers, books of account, invoices, vouchers, cancelled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to CITY for a minimum period of three (3) y ears, or for any longer period required by law, from the d ate of final payment to CONTRACTOR pursuant to this AGREEMENT.

B. CONTRACTOR shall maintain all documents and records which demonstrate performance under this AGREEMENT for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this AGREEMENT.

C. Any records or documents required to be maintained pursuant to this AGREEMENT shall be made available for inspection or audit at no cost to CITY, at any time during regular business hours, upon written request by the City Attorney, City Auditor, City Manager, or a designated representative of any of these officers. Copies of such documents shall be provided to CITY for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be avai lable at CONTRACTOR's address indicated for receipt of notices in this AGREEMENT. CONTRACTOR acknowledges that under certain circumstances specified in California Government Code Section 8546.7, this AGREEMENT (if it involves an expenditure of $10,000 or more of public funds) may be subject to examination and audit by the Auditor of the State of California pursuant to California Government Code Section 8546.7.

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5 D. Where CITY has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of CONTRACTOR's business, CITY may, by written request by any of the above -named officers, require that custody of the records be given to CITY and that the records and documents be maintained in City Hall. Access to such records and documents shall be granted to any party authorized by CONTRACTOR, CONTRACTOR's representatives, or CONTRACTOR's successor-in-interest.

SECTION 18. SPECIAL PROVISIONS.

Special provisions, if any, to this AGREEMENT are specified in EXHIBIT D, entitled, “SPECIAL PROVISIONS”, which is attached hereto and incorporated herein.

SECTION 19. NOTICES.

All notices and other communications required or permitted to be given under this AGREEMENT shall be in writing and shall be personally served or mailed, postage prepaid and return receipt requested, addressed to the respective parties as follows:

To CITY: Campbell Adult Center
Attn. Tina Wong-Erling
1 W. Campbell Ave. C-33
Campbell, CA 95008

To CONTRACTOR: MoonChef, LLC.

Attn: Ms. Daisy Li
405 S. Canal Street
South San Francisco, CA 94080

Notice shall be deemed effective on the date personally delivered or, if mailed, three (3) days after deposit in the mail.

SECTION 20. VENUE.

In the event that suit shall be brought by either party to this contract, the parties agree that venue shall be exclusively vested in the state courts of the County of Santa Clara, or if federal jurisdiction is appropriate, exclusively in the United States District Court, Northern District of California, San Jose, California.

SECTION 21. INTERPRETATION, PRIOR AGREEMENTS AND AMENDMENTS.

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6 This AGREEMENT, including all Exhibits attached hereto, represents the entire understanding of the parties as to those matters contained herein. In the event that the terms specified in any of the Exhibits attached hereto conflict with any of the terms specified in the body of this AGREEMENT, the terms specified in the body of this AGREEMENT shall control. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This AGREEMENT may be modified only by a written amendment duly executed by the parties to this AGREEMENT.

WITNESS THE EXECUTION HEREOF on the day and year first hereinabove written.

APPROVED AS TO FORM:

______________________________
William Seligmann
City Attorney
“CITY”

CITY OF CAMPBELL, a municipal
corporation

By_______________________________
Brian Loventhal
City Manager

“CONTRACTOR”

MOONCHEF, LLC

By_______________________________
Daisy Li
Chief Executive Officer

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A-1

EXHIBIT A

SCOPE OF SERVICES

CONTRACTOR agrees to perform the following services in accordance with the City of Campbell’s Senior Nutrition Program and County Agreement, as amended.

Site Name: Campbell Adult Center
Address: 1 W. Campbell Avenue
Campbell, CA 95008
Delivery Time: 11:00 am-11:30 am
Delivery Days: Three days per week, Tuesdays, Wednesdays, and Thursdays Number Meals: Total meals contracted- up to 10,500 for 150 days; July 1, 2024- June 30, 2025

Cost per Meal: $6.16 for meals in Fiscal Year 2024/2025 (July 1, 2024 to June 30, 2025)

1. Holding time and between meal preparation and scheduled serving time shall not exceed two (2) hours.

2. Meals shall conform to the food and nutrition standards as require by County Agreement , as amended . Such meal s shall be low in salt and fat contents. Use of MSG, artificial flavoring and color is not recommended. Each serving portion shall include:

• No less than 3 ounces of meat or protein substitute
• No less than 1 cup of vegetables
• No less than ½ cup of rice or other carbohydrate
• One fruit

3. Contractor shall provide a central kitchen for the production of meals pursuant to this Agreement, and shall deliver such meals to designated location as mutually agreed upon by both parties. Contractor shall provide equipment required for the provision of services, and all equipment to transport food shall be NSF (National Sanitation Foundation) approved. Food storage facilities shall maintain a temperature of 140 degrees Fahrenheit or more for hot food and 40 degrees Fahrenheit or less for cold food. Temperatures of meals shall be checked daily and recorded before leaving the kitchen.

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B-1

EXHIBIT B

COMPENSATION

Pursuant to this Agreement, the CITY agrees to compensate CONTRACTOR in accordance with the terms and conditions of this AGREEMENT. CITY shall make payment to CONTRACTOR no later than thirty (30) days upon receipt and approval of invoice by CITY for the delivery of meals to the Senior Nutrition Program.

1. Per meal cost will not exceed $6.16 per meal for the one-year Term.

2. Payment will be made payable to:

MoonChef, LLC
405 S. Canal Street
South San Francisco, CA 94080

There shall be no reimbursable expenses under this Agreement.

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C-1

EXHIBIT C

INSURANCE

CONTRACTOR, at CONTRACTOR's sole cost and expense, shall procure and maintain for the duration of this AGREEMENT insurance against claims for injuries to persons or damages to property which may arise from, or in connection with, the performance of the services hereunder by CONTRACTOR, its agents, representatives, employees or subcontractors.

Definition:

For purposes of this contract, the following definition applies: City of Campbell includes the duly elected or appointed officers, agents, employees and volunteers of the City of Campbell, individually or collectively.

Insurance Required:

No work shall be done under this Contract unless there is in effect insurance required by the Contract and under this section, and such insurance has been approved by the City, nor shall the Contractor allow any subcontractor to commence work on his subcon tract until all insurance required of the subcontractor has been so obtained and approved. The Contractor shall maintain or cause to be maintained adequate workers' compensation insurance as required under the laws of the State of California, for all labo r employed by him or by any subcontractor under him who may come within the protection of such worker's compensation laws of the State of California and shall provide or cause to be provided employer's liability insurance for the benefit of his employees.

A. Minimum Scope of Insurance: (Check Mark Indicates Required)

Coverage must be at least as broad as:

(X) Insurance Services Office Commercial General Liability coverage (occurrence Form CG0001).
(X) Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto).
(X) Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.
( ) Professional Liability or Errors & Omissions Liability insurance appropriate to the contractor’s profession.
( ) Architects’ and Engineers’ coverage is to be endorsed to include contractual liability.

B. Minimum Limits of Insurance

CONTRACTOR shall maintain limits no less than:

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C-2

1. General Liability:
(Including operations,
products and completed
operations, as
applicable.)
$1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggr egate limit must be twice the required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Workers’
Compensation
Employer’s Liability:

Statutory
$1,000,000 each accident
$1,000,000 disease-policy limit
$1,000,000 disease-each employee

4. Professional Liability or
Errors & Omissions
Liability:
$1,000,000 each occurrence
$1,000,000 policy aggregate

C. Deductibles and Self-Insured Retentions

Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the Contractor to provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention.

D. Other Insurance Provisions

The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. The City of Campbell, its officers, officials, employees, and volunteers are to be covered as insureds with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Contract or including materials, parts or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85), or as a separate owner’s policy.

2. For any claims related to this project, the Contractor’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers.

Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.

3. The Insurance Company agrees to waive all rights of subrogation against the City, its elected or appointed officers, officials, agents and employees for losses paid under the

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C-3

terms of any policy which arise from work performed by the Named Insured for the City.

This provision also applies to the Contractor’s Workers’ Compensation policy.

4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice (10 days for non-payment) by certified mail, return receipt requested, has been given to the City. If Contractor’s insurer refuses to provide this endorsement, Contractor shall be responsible for providing written notice to the City that coverage will be canceled thirty (30) days after the date of the notice or ten (10) days for non-payment.

E. Acceptability of Insurers

Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best’s rating of no less than A -VII. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A -X. Exception may be made for the State Compensation Fund when not specifically rated.

F. Verification of Coverage

Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the contract requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications.

The Certificate with endorsements and notices shall be mailed to: City of Campbell, Attention:

Natasha Bissell 1 W. Campbell Ave. C-31 Campbell, California, 95008.

G. Subcontractors

Contractors must include all sub -contractors as insureds under its policies or furnish separate certificates and endorsements for each sub-contractor. All coverage for sub-contractors is subject to all of the requirements included in these specifications.

Absence of Insurance:

If the Contractor allows the insurance to lapse, be cancelled, or be reduced below the limits specified in this article, the Contractor shall cause all work in the Project to cease and any delays or expenses caused due to stopping of work and change of ins urance shall be considered Contractor's delay and shall not be considered to increase cost to the City or increase time in which the Project shall be completed.

Contractor agrees that if it does not keep the aforesaid insurance in full force and effect, City may immediately terminate this Agreement.

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D-1

EXHIBIT D

SPECIAL PROVISIONS

Retroactive Services

It is understood and agreed that CONTRACTOR has provided services prior to the execution of this AGREEMENT in anticipation of its execution. If CITY accepts and approves the services provided by CONTRACTOR prior to the date of this AGREEMENT, CITY agrees to compensate CONTRACTOR for those services in accordance with the terms of this AGREEMENT. However, in no event shall CONTRACTOR be compensated for work performed for CITY prior to July 1, 2024.

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City
Council
Report

TITLE: Ordinance 2307 Adopting FY 2025 Business License Tax Rates (Ordinance/Roll Call Vote)

RECOMMENDED ACTION

That the City Council take second reading to adopt Ordinance 2307 amending provisions of the Campbell Municipal Code to revise the business license tax rates, effective in Fiscal Year (FY) 2025.

BACKGROUND

As part of Measure M, approved by the voters in November 2010, Campbell Municipal Code (CMC) Section 5.01.170 (Business Licenses and Regulations) was amended by Ordinance 2132 to provide that the City Council may, by ordinance, increase the amount of any tax set forth in this title by no more than two percent (2%) per year to account for inflation. For reference, business license tax rates were last increased by 2% in Fiscal Year (FY) 2024. Due to negative economic impacts to the business community caused by the COVID-19 pandemic, Council chose to keep rates unchanged for FY 2021, 2022, and 2023.

DISCUSSION

At the regular meeting of April 16, 2024, the City Council held a public hearing to consider an ordinance amending provisions of the Campbell Municipal Code to revise the business license tax rates, effective in Fiscal Year (FY) 2025. Pursuant to Government Code section 54954.6 the public hearing notice was published three times on April 3, 10 and 17, 2024. The item was approved by unanimous vote and the City Council took first reading of Ordinance 2307. Following second reading and adoption, the full version of Ordinance 2307 will be published in the Metro Silicon Valley, a newspaper of general circulation for the City of Campbell, County of Santa Clara on June 12, 2024. Ordinance 2307 will become effective 30 days following the second reading approval.

FISCAL IMPACT

Nominal publication costs are associated with approving the Ordinance second reading to meet the requirement of Gov. Code 36933, but can be absorbed within the current FY Item: 8
Category: CONSENT CALENDAR
Meeting Date: June 4, 2024
8 Packet Pg. 82
Ordinance 2307 - FY 2025 Business License Page 2 of 2
2024 Operating Budget. Costs for codification of the Ordinance in the Campbell Municipal Code are also included in the current budget by way of purchase order. Other fiscal impacts are included in the staff report introducing the Ordinance on April 16, 2024.

Prepared by:

Andrea Sanders, City Clerk
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Ordinance 2307 - FY25 Business License Rates
8 Packet Pg. 83

ORDINANCE NO. 2307

BEING AN ORDINANCE OF THE CITY COUNCIL OF THE

CITY OF CAMPBELL AMENDING PROVISIONS OF THE CAMPBELL MUNICIPAL

CODE TO REVISE BUSINESS LICENSE TAX RATES
WHEREAS, pursuant to section 5.01.170 of the Campbell Municipal Code, as approved by the voters as part of Measure M, the City Council may by ordinance increase the amount of any tax set forth in this title by no more than two percent per year to account for inflation.

The City Council of the City of Campbell does ordain as follows:

SECTION ONE: Section 5.04.010 of the Campbell Municipal Code is amended to read as follows:

5.04.010 - Designated.

Every person conducting businesses, professions and activities in the city, the primary nature of which is indicated in the following schedule, shall annually pay the license tax set opposite the same, based upon the average number of employees in such business, according to the following schedules, unless such business is otherwise specifically taxed by other provisions of this chapter:

Commercial:
(Schedule I) 1 to 5 employees $129.00
6 to 15 employees $206.00
16 to 50 employees $297.00
51+ employees $595.00
Industrial and manufacturing:
(Schedule II) 1 to 5 employees $129.00
6 to 50 employees $206.00
51+ employees $356.00
Professional:
(Schedule III) 1 to 3 employees $129.00
4 to 10 employees $238.00
11 to 50 employees $416.00
51+ employees $595.00
Hotels: $177.00 per year plus $3.00/room
Live commercial entertainment: $356.00
Marijuana Businesses: 7% of gross receipts per Chapter 5.12 Massage Establishment: 1 to 3 employees $129.00
4 or more employees $238.00
Massage Therapist: $129.00

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Attachment: Ordinance 2307 - FY25 Business License Rates (Ordinance 2307 - FY 2025 Business License) Mobile home parks and trailer courts: $238.00 per year plus $2/unit Out-of-town business: $103.00
Rental or income producing residences located
on single or contiguous parcels of land:
$69.00 per year for the first unit plus
$3.00 for each additional unit.
(Owners occupying one unit of a 3 or more unit building are entitled to a $3.00 exemption if said owner files an affidavit with the City claiming the exemption.) Taxicab or limousine service: $129.00 per year plus $21.00 per vehicle Theaters: $475.00
Tow Services: $59.00
Solicitors: $356.00 per year
SECTION TWO: Section 5.08.010 of the Campbell Municipal Code is hereby amended to read:

5.08.010 - Activities designated—Fees.

No person shall conduct any of the following businesses and activities in the City without first securing a permit therefor from the City Council on written application filed therefor with the City Clerk, approved by the Chief of Police, the Chief of the Fire Department, and the Community Development Director. The application shall comply with the requirements of Section 5.08.020. The following are the activities regulated by this chapter and the license fee therefor:
(1) Fire and/or bankruptcy and/or wreck sale, first day $52.00 Each additional day, per day $26.00
(2) Grinding and/or sharpening knives, scissors, cutlery, lawn mowers, etc., when the person conducting such business travels from place to place by vehicle or on foot, per year ....._$26.00
(3) Itinerant medicine vendor, street vendor, temporary vendor and/or peddler, per day $31.00
(4) Pawnbroker, per year $356.00
(5) Dancehall, public dances, per year $104.00
SECTION FOUR: This Ordinance shall become effective July 1, 2024, following its passage and adoption and shall be published once within fifteen (15) days upon passage and adoption in the City’s designated newspaper of general circulation.

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Attachment: Ordinance 2307 - FY25 Business License Rates (Ordinance 2307 - FY 2025 Business License) PASSED AND ADOPTED this day of 2024 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

Susan M. Landry, Mayor
ATTEST:

Andrea Sanders, City Clerk

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Attachment: Ordinance 2307 - FY25 Business License Rates (Ordinance 2307 - FY 2025 Business License) City
Council
Report
TITLE: Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention, Lighting and Landscaping District LLA -1, Fiscal Year (FY) 2024 -25 and Set Time and Place for Public Hearing (Resolution/Roll Call Vote)

RECOMMENDED ACTION
That the City Council adopt a resolution preliminarily approving the Engineer’s Report for the annual levy and collection of assessments for City of Campbell Lighting District LLA-1 for Fiscal Year 2024 -25; and adopt a resolution declaring Council’s intention to levy and collect assessments within the City of Campbell Lighting District LLA -1 for (FY) 2024-25 and setting forth the time and place for a required Public Hearing.

BACKGROUND
On April 2, 2024, pursuant to City Council Resolution No. 5831 approving the formation of the city -wide City of Campbell Lighting District LLA -1 (LLA-1) and the Landscaping and Lighting Act of 1972 (LLA), the City Council adopted Resolution No. 13137 directing staff to prepare a preliminary Engineer’s Report and initiate proceedings in support of levying assessments on properties within the LLA -1 for Fiscal Year (FY) 2024 -25, as more fully described in the April 2, 2024, City Staff Report. The purpose of the LLA -1 is to help the City of Campbell (City) fund the installation, operation, and maintenance of a range of public improvements within the district, including public lighting, traffic signals, street and median landscaping, parks and recreational improvements, curbs, gutters, sidewalks, and irrigation systems and associated drainage improvements.

DISCUSSION
The Engineer’s Report for FY 2024-25 has been prepared and filed with the City Clerk’s Office and is available for viewing by the public. The report includes a diagram showing the exterior boundaries of the Assessment District, and the lines and dimensions of each parcel of land within the District is referenced to that parcel as shown on the County Assessor’s map for FY 2024 -25; each of which parcels are identified by a distinctive number on said County Assessor map. The report contains a proposed assessment roll consisting of the total amount of the estimated costs and expenses of proposed improvements (which there are none) in accordance with Section 22569 of the California Streets and Highways Code, and the maintenance and/or operation thereof, and of any existing improvements, to be assessed upon the parcels in said Item: 9
Category: CONSENT CALENDAR
Meeting Date: June 4, 2024
9 Packet Pg. 87
Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention -LLA-1 Page 2 of 3 District in proportion to the estimated benefits to be received by such parcels respectively from said improvements, including the maintenance and/or servicing, and of the incidental expenses as provided in the Rules for Spreading Assessments, Exhibit A of the attached Resolution for the Preliminary Approval of the Engineer’s Report for LLA-1, except that such assessments are not imposed upon a Federal, State, or local agency or upon a public utility or other special government district. The Engineer’s Report also includes a list of improvements as shown in the Description of Work, Exhibit A, of the attached Resolution of Intention to Levy and Collect Assessments for LLA -1.

No new improvements are proposed within LLA-1 for FY 2024-25.

The Engineer’s Report anticipates total expenditures for needed installation, operation, and maintenance activities in FY 2024 -25 to amount to approximately $4.46 million.

These anticipated expenditures are incorporated into the FY 2024 -25 Proposed Budget and 2025 to 2029 Proposed Capital Improvement Plan (CIP).

Based on the LLA -1 assessment formula, the level of special assessments is only anticipated to total approximately $1,210,000 in FY 2024 -25. To make up the difference to cover the needed maintenance, signal and lighting activities required, a combined contribution of approximately $3.25 million will be derived from other revenue sources including the General Fund, Construction Tax, and Gas Tax in FY 2024-25.

To support the levying and collection of assessments in the district in the amount of $1,210,000, City staff proposes the City Council approve the Engineer’s Report for the annual LLA-1 assessment and declare its intention to levy and collect the annual LLA -1 assessment, and direct City staff action as follows:

June 4, 2024 City Council grants preliminary approval of Engineer’s Report and adopts Resolution of Intention. Time and place for the Public Hearing are set.

June 26, 2024 Resolution of Intention published in in a local newspaper of general circulation.

July 3, 2024 Resolution of Intention published in in a local newspaper of general circulation.

July 16, 2024 Public Hearing is held at the regular City Council Meeting. The City Council considers adoption of a Resolution Overruling Protests, if any, ordering the improvements and confirming the diagram and assessments for FY 2024-25.

August 2, 2024 Diagram and assessment filed with County Auditor no later than August 2, 2024.

To proceed with the assessment process for FY 2024 -25, it is also necessary for the City Council to conduct a Public Hearing on the levy of the proposed assessment at the 9 Packet Pg. 88
Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention -LLA-1 Page 3 of 3 regular City Council meeting on July 16, 2024. Notices will be published notifying Campbell residents of the upcoming Public Hearing.

FISCAL IMPACT
Although there is no direct fiscal impact associated with this action, failure to preliminarily approve the Engineer’s Report and set the Public Hearing date would jeopardize the ability of the City to levy the annual Lighting and Landscaping District assessment, which provides approximately $1.21 million to the City for needed services.

ALTERNATIVES
Do not proceed with the annual Lighting and Landscaping District assessment process and designate alternative funding sources for staff to use to replace the LLA -1 revenue or direct staff to reduce or suspend services historically funded by LLA-1 revenue.

Prepared by:

Roger Storz, Senior Civil Engineer
Reviewed by:

Todd Capurso, Director of Public Works
Approved by:

Brian Loventhal, City Manager
Attachment:
a. FY 24-25 LLA Resolution of Approval
b. FY 24-25 LLA Resolution of Intention
9 Packet Pg. 89

RESOLUTION NO. ________________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL PRELIMINARILY APPROVING THE ENGINEER’S REPORT FOR THE ANNUAL

LEVY AND COLLECTION OF ASSESSMENTS FOR

CITY OF CAMPBELL LIGHTING DISTRICT
LLA-1 FOR FISCAL YEAR 2024-25

BE IT RESOLVED, by the City Council of the City of Campbell as follows:

1. On April 2, 20 24, the City Council adopted Resolution No . 13137, initiating proceedings and directing the City Engineer to prepare a report in accordance with Division 15, Part 2, Chapter 1, Article 4 of the California Streets & Highways Code (Sections 22565 et seq.) for the purpose of the annual levy and collection of assessments for the City of Campbell Lighting District LLA-1 for Fiscal Year (FY) 2024-25;

2. The report has been filed with the City Clerk;

3. The City Council finds that the report adequately sets forth the following information:

a) Plans and specifications for proposed new improvements, if any, to be made within the Assessment District;

b) An estimate of the costs of said proposed new improvements, if any, to be made and the costs of maintenance or operation, or both, thereof, and an estimate of the costs for maintenance and operation of any existing improvements, together with the incidental expenses in connection therewith;

c) A diagram showing the exterior boundaries of the Assessment District and the lines and dimensions of each parcel of land within the District as such parcel of land is shown on the County Assessor’s map for FY 2024-25; each of which parcels shall be identified by a distinctive number or letter on said diagram; and

d) A proposed assessment, consisting of the total amount of the estimated costs and expenses of the proposed new improvements in accordance with Section 22569 of the California Streets and Highways Code, including the installation, if any, and the maintenance and/or operation thereof, and of any existing improvements , to be assessed upon the parcels in said District in proportion to the estimated benefits to be received by such parcels respectively from said improvements, including the maintenance or servicing, or both, therefore, and of the expenses incidental thereto, as provided in the Rules for Spreading Assessments, which is attached hereto as Exhibit A and hereby adopted.

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Attachment: FY 24-25 LLA Resolution of Approval (Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention-LLA-1) NOW, THEREFORE, the City Council hereby preliminarily approves the Engineer’s Report as presently submitted.

I hereby certify that the foregoing is a full, true and correct copy of a Resolution duly passed and adopted by the City Council of the City of Campbell, California, at a meeting thereof held on the _______ of __________, 2024, by the following vote of the members thereof:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:
__________________________________
Susan M. Landry, Mayor
ATTEST:
__________________________
Andrea Sanders, City Clerk

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Attachment: FY 24-25 LLA Resolution of Approval (Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention-LLA-1)

EXHIBIT A
LLA-1 RULES FOR SPREADING ASSESSMENTS

1. District is to be assessed for all costs of forming the District and maintaining the street landscaping and the lighting systems located within the boundaries of the District.

2. The City Council is hereby authorized to annually increase the assessment by not more than ten percent (10%) per year to cover increased costs.

3. Total costs shall be apportioned to all parcels within the district boundary in accordance with the benefit received. Parcels without curbs, gutters or sidewalks pay no assessment for sidewalk repair.

4. The benefit for each parcel has been determined to be proportional to the land area of that parcel.

5. The area for condominium and townhouse developments shall be determined by assigning to each unit in the development an area equal to that unit’s proportionate share of the total land area in the development.

6. Parcels zoned single-family residence or agriculture are assessed up to a maximum of 10,000 square feet.

7. Three categories of benefits have been established:

A. All parcels having existing zoning of R -1, R-D, R-M-S, R-2-S, R-3-S, P-F or PD (Residential).

B. All parcels having existing zoning of C -1-S, C -2-S, C -3-S, P -O, or PD (commercial or professional).

C. All parcels having existing zoning of M-1-S, M-2-S, or C-M-B.

8. Assessment for lighting and curbs, gutters and sidewalks shall be apportioned as follows:

All parcels in Category B have been determined to receive benefit on an area basis in the amount of 1.25 times the amount of benefit to an equal area in Category A or C.

This additional benefit is attributed to wider sidewalks and to increased lighting intensity which provide additional security and advertisement for those types of land uses.

9. Assessments for arterial street landscaping shall be apportioned among the parcels in Category B and C of Paragraph 7 above . Residential street landscaping shall be apportioned among the parcels in Category A of Paragraph 7 above.

10. In the event that any provision of these rules is held void or unenforceable by a court of competent jurisdiction, such rule shall be deemed severable from the remaining rules, and the remaining rules shall remain in full force and effect.

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Attachment: FY 24-25 LLA Resolution of Approval (Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention-LLA-1)

RESOLUTION NO. ___________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

DECLARING ITS INTENTION TO LEVY AND COLLECT

ASSESSMENTS WITHIN THE CITY OF CAMPBELL LIGHTING
DISTRICT LLA-1 FOR FISCAL YEAR 2024-25

WHEREAS, the City Council, pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the Streets and Highways Code of the State of California, conducted proceedings for the formation of the City of Campbell Lighting District LLA-1 and for the levy and collection of Assessments for Fiscal Year 1980 -1981, and on June 23, 1980, pursuant to proceedings duly had, adopted Resolution 5831, Overruling Protests and Ordering the Formation of an Assessment District, Improvements, and Confirming the Diagram and Assessment; and

WHEREAS, the public interest, convenience and necessity require, and it is the intention of said Council to undertake proceedings for the levy and collection of assessments upon the parcels of land in said District, for the installation of improvements, including the maintenance or operation, or both, thereof for the Fiscal Year 2024-25, and

WHEREAS, the City Council has given preliminary approval to the Engineer’s Report which is on file with the City Clerk.

NOW, THEREFORE, BE IT RESOLVED as follows:

1. The City Council declares its intention to levy and collect assessments within the boundaries of City of Campbell Lighting District LLA-1 for Fiscal Year 2024-25, except that such assessments shall not be imposed upon a Federal, State, or local agency or upon a public utility or other special government district.

2. The existing and proposed improvements are generally described in Exhibit A attached to this Resolution, along with any substantial changes proposed to be made in existing improvements.

3. The Assessment District, distinctly referred to as City of Campbell Lighting District LLA-1, is located within all the area of the City Limits of the City of Campbell.

4. The Engineer’s Report setting forth a full and detailed description of the improvements, the boundaries of the Assessment District, and the proposed assessments upon assessable parcels of land within the District, is on file with the City Clerk and available for viewing by the public.

6. The City Council shall conduct a Public Hearing on the levy of the proposed assessment at the r egular Council meeting on July 16, 20 24 at 7: 00 p.m., or as soon thereafter as the matter may be heard, in the Council Chambers at Campbell City Hall, 70

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Attachment: FY 24-25 LLA Resolution of Intention (Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention-LLA-1)

North First Street, Campbell, California 95008.

I hereby certify that the foregoing is a full, true and correct copy of a Resolution duly passed and adopted by the City Council of the City of Campbell, California, at a meeting thereof held on the ______ day of _______, 2024, by the following vote of the members thereof:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

_______________________________
Susan M. Landry, Mayor

ATTEST:

__________________________
Andrea Sanders, City Clerk

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Attachment: FY 24-25 LLA Resolution of Intention (Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention-LLA-1) Exhibit A
City of Campbell
Lighting District LLA-1
Description of Work
The installation, maintenance and operation of public light and traffic signal facilities including standards, luminaires, poles, conduits, wires, transformers, attachments and appurtenances, the furnishing of electric energy, and any expenses incidental thereto.

The maintaining and servicing of trees, shrubs, grass, other ornamental vegetation, irrigation and appurtenances, including repair, removal and replacement of all or any part thereof, providing for the life, growth, health and beauty of landscaping, including cultivation, trimming, spraying, fertilizing, treating for disease or injury, the removal of trimmings, rubbish, debris and other solid waste, water for irrigation and any expenses incidental thereto.

The installation and maintenance of curbs, gutters and sidewalks, park and recreational improvements, including play equipment and public restrooms.

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Attachment: FY 24-25 LLA Resolution of Intention (Preliminary Approval of Engineer’s Report and Adoption of Resolution of Intention-LLA-1) City
Council
Report
TITLE: Approval of Authorization Agreement Between the City of Campbell and the West Valley Solid Waste Management Authority and Authorization for City Manager to Sign the Authorization Agreement (Resolution/Roll Call Vote)

RECOMMENDED ACTION
That the City Council adopt a resolution approving an Authorization Agreement between the City and the West Valley Solid Waste Management Authority (WVSWMA) for the WVSWMA to enter into a Countywide Food Recovery Program and authorizing the City Manager to execute said agreement and future extensions and amendments.

BACKGROUND
The West Valley Solid Waste Management Authority (WVSWMA) was established as a Joint Power Authority by the City of Campbell and the cities of Monte Sereno, Saratoga and the Town of Los Gatos (collectively referred to as the “Member Agencies”), to arrange for and manage the waste reduction, collection, reuse, disposal, recycling and diversion of discarded materials originating in the participating municipalities.

The WVSWMA member agencies are also parties to the Recycling and Waste Reduction Commission Technical Advisory Committee (RWRC TAC) of Santa Clara County which provides coordination for countywide planning efforts and works to assure the success of countywide cooperative programs to reduce, reuse and recycle materials that otherwise would be disposed of in landfills. Members of the RWRC TAC consist of representatives from local agencies and/or municipalities operating under the jurisdiction of Santa Clara County – including the City of Campbell. On behalf of the member agencies, the Executive Director of the WVSWMA attends monthly RWRC TAC meetings as well as any subcommittee meetings noteworthy of attendance.

California’s Short -Lived Climate Pollutant Reduction Law (SB 1383) establishes methane reduction targets for California, including a target to increase recovery by 20 percent of currently disposed edible food for human consumption by January 1, 2025.

To meet the mandated statewide goal, SB 1383 requires each jurisdiction in California to establish and monitor a robust food recovery program, which will strengthen the relationships between commercial edible food generators and food recovery organizations with in their communities, requiring certain food businesses to send the Item: 10
Category: CONSENT CALENDAR
Meeting Date: June 4, 2024
10 Packet Pg. 96
Approval of Authorization Agreement Between the City of Campbell and West Valley Solid Waste Mgmt

Page 2 of 3 ends

maximum amount of edible food they would otherwise dispose to food recovery organizations and/or services.

The RWRC TAC members, including the WVSWMA member agencies, have previously agreed to jointly administer and fund the cost of a countywide edible Food Recovery Program through a Memorandum of Understanding (Former MOU) covering the time period of July 1, 2023 to June 30, 2024 to satisfy their respective obligations under SB 1383 and the corresponding regulations.

DISCUSSION
Due to the expiration of the Former MOU, a successor Memorandum of understanding for the Food Recovery Program (Attachment B) has been prepared by the WVSWMA member agencies and remaining RWRC TAC members. Considering the WVSWMA's longstanding representation of its member agencies, the City seeks to authorize the WVSWMA to act on its behalf, serve as its representative, enter into the new Food Recovery MOU, and fund the City's participation in the countywide Food Recovery Program.

In light of this, legal representatives from the WVSWMA and its member agencies have collaboratively prepared the attached Authorization Agreement (Attachment C). This document proposes to grant the WVSWMA the necessary authority to sign the countywide Food Recovery Program MOU on behalf of all member agencies. Staff recommends that the City Council approve the Authorization Agreement and enable the City Manager to execute said agreement along with future extensions and amendments.

FISCAL IMPACT
The approval and authorization for execution of this agreement will not result in any immediate fiscal implications for the City. The expenses linked to the countywide Food Recovery Program are recovered by the solid waste rates and are the responsibility of the WVSWMA.

ALTERNATIVES

1. Do not approve staff’s recommendation and solely authorize the City of Campbell to sign the countywide Food Recovery Program MOU and take on full responsibility for its funding and management.

2. Do not approve staff’s recommendation and separate the City of Campbell from the countywide Food Recovery Program and create and fund an alternative Food Recovery Program to adhere to SB 1383.

3. Provide alternative direction to staff.
10 Packet Pg. 97
Approval of Authorization Agreement Between the City of Campbell and West Valley Solid Waste Mgmt

Page 3 of 3 ends

Prepared by:

Peri Newby, Environmental Program
Specialist
Reviewed by:

Todd Capurso, Director of Public Works
Approved by:

Brian Loventhal, City Manager
Attachment:
a. Resolution
b. Countywide Edible Food Recovery Program MOU
c. West Valley Solid Waste Management Authorization Agreement 10 Packet Pg. 98

RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL TO

APPROVE THE AUTHORIZATION AGREEMENT BETWEEN THE CITY OF

CAMPBELL AND THE WEST VALLEY SOLID WASTE MANAGEMENT AUTHORITY

AND AUTHORIZE THE CITY MANAGER TO SIGN THE AUTHORIZATION

AGREEMENT

WHEREAS, the West Valley Solid Waste Management Authority (WVSWMA) was established as a Joint Power Authority by the City of Campbell and the cities of Monte Sereno, Saratoga, and the Town of Los Gatos (collectively referred to as the “Member Agencies”), to arrange for and manage the waste reduction, collection, reuse, disposal, recycling and diversion of discarded materials originating in the participating municipalities; and
WHEREAS, the WVSWMA M ember Agencies are parties to the Memorandum of Agreement entered into on June 14, 2013 for the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee ( RWRC TAC), which is a separate Committee that advances the interests of party jurisdictions by performing technical and policy review to inform parties and advise the Commission on solid waste management issues, and bring together varied expertise and viewpoints for planning and implementing the Commission approved annual workplan and budget; and WHEREAS, California’s Short-Lived Climate Pollutant Reduction law (SB 1383, Lara, Chapter 395, Statutes of 2016) establishes methane reduction targets for California, including a target to increase recovery by 20 percent of currently disposed edible food for human consumption by January 1, 2025; and

WHEREAS, SB 1383 requires each jurisdiction in California to establish and monitor a robust food recovery program, which will strengthen the relationships between commercial edible food generators and food recovery organizations within their communities, requiring certain food businesses to send the maximum amount of edible food they would otherwise dispose to food recovery organizations and/or services; and

WHEREAS, the RWRC TAC members as well as the WVSWMA Member Agencies have previously agreed to jointly administer and fund the cost of a countywide edible Food Recovery Program through the Memorandum of Understanding Among Local Public Agencies in Santa Clara County for Food Recovery Program Costs entered into and covering the time period of July 1, 2023 to June 30, 2024 (“Former MOU”) to satisfy their respective obligations under SB 1383 and the corresponding regulations; and

WHEREAS, due to the expiration of the Former MOU, the RWRC TAC members including the City of Campbell, have prepared a successor Memorandum of Understanding for the Food Recovery Program (“Successor MOU”); and

WHEREAS, based on the WVSWMA’s longstanding representation of Member Agencies, the City desires to authorize the WVSWMA to act on its behalf, serve as its

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Attachment: Resolution (Approval of Authorization Agreement Between the City of Campbell and West Valley Solid Waste Mgmt)

representative, enter into the Successor MOU and fund the City’s participation in the countywide Food Recovery Program; and

WHEREAS, the Authority is willing to act on the City’s behalf, serve as the City‘s representative, enter into the Successor MOU and fund City’s participation in the Food Recovery Program.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby approve the Authorization Agreement between the City and the West Valley Solid Waste Management Authority and authorizes the City Manager to execute the Authorization Agreement and future extensions of the Agreements for the countywide Food Recovery Program.

PASSED AND ADOPTED this 4th day of June, 2024 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

________________________
Susan M. Landry, Mayor

ATTEST:

__________________________
Andrea Sanders, City Clerk

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Attachment: Resolution (Approval of Authorization Agreement Between the City of Campbell and West Valley Solid Waste Mgmt)

1 MEMORANDUM OF UNDERSTANDING

AMONG LOCAL PUBLIC AGENCIES

IN SANTA CLARA COUNTY

FOR COUNTYWIDE FOOD RECOVERY PROGRAM

This Memorandum of Understanding (“MOU”) is entered into by and between the cities of Cupertino, a municipal corporation of the state of California; Gilroy, a municipal corporation of the state of California; Los Altos, a municipal corporation of the state of California; Milpitas, a municipal corporation of the state of California; Morgan Hill, a municipal corporation of the state of California; Mountain View, a municipal corporation of the state of California; Palo Alto, a municipal corporation of the state of California; San José, a municipal corporation of the state of California; Santa Clara, a municipal corporation of the state of California; Sunnyvale, a municipal corporation of the state of California; the West Valley Solid Waste Management Authority (on behalf of the cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos); the Town of Los Altos Hills, a municipal corporation of the state of California; and the County of Santa Clara, a political subdivision of the State of California; collectively “Parties” or individually as a "Party."

RECITALS

A. The signatory Parties are also “PARTIES” to the Memorandum of Agreement (“MOA”) entered into on June 14, 2013 for the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee (“TAC”), which is a separate Committee created to assist the County of Santa Clara Recycling and Waste Reduction Commission (“RWRC” or “Commission”) that advances the interests of Party Jurisdictions by performing technical and policy review to inform parties and advise the Commission on solid waste management issues, and bring together varied expertise and viewpoints for planning and implementing the Commission approved annual workplan and budget. The MOA, which remains in effect, is attached hereto and incorporated herein by reference as Exhibit B.

B. California’s Short-Lived Climate Pollutant Reduction law (SB 1383, Lara, Chapter 395, Statutes of 2016) establishes methane reduction targets for California, including a target to increase recovery by 20 percent of currently disposed edible food for human consumption by January 1, 2025.

C. To meet the mandated statewide goal, SB 1383 requires each Jurisdiction in California to establish and monitor a robust food recovery program, which will strengthen the relationships between commercial edible food generators and food recovery organizations within their communities, requiring certain food businesses to send the maximum amount of edible food they would otherwise dispose to food recovery organizations and/or services.

D. The Parties have previously agreed to jointly administer and fund the cost of a countywide edible Food Recovery Program (the “Program”) through the Memorandum of Understanding Among Local Public Agencies in Santa Clara County for Food Recovery Program Costs entered into and covering the time period of July 1, 2023 to June 30, 2024 (“Former MOU”) to satisfy their respective obligations under SB 1383 and the corresponding regulations. The Former MOU is attached hereto as Exhibit C.

E. The Parties desire to execute this MOU to ensure ongoing operation of the countywide food recovery program to provide for their respective share of costs for the Program.

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2 F. The West Valley Solid Waste Management Authority (“Authority”) was established by the cities of Campbell, Monte Sereno, Saratoga, and the Town of Los Gatos (collectively referred to as the “Member Agencies”), pursuant to the provisions of the Joint Exercise of Powers Act (Title 1, Division 7, Article1, Section 6500 et seq. of the California Government Code) to arrange for and manage the waste reduction, collection, reuse, disposal, recycling, and diversion of discarded materials originating in the participating municipalities; and in furtherance of that purpose, the Member Agencies and the Authority have entered into agreements authorizing the Authority to act as the representative of the Member Agencies in the Food Recovery Program.

NOW, THEREFORE, the Parties agree as follows:

SECTION 1. PURPOSE OF THE MOU

The purpose of this MOU is to establish a system of:

1) Ongoing management and operation of the Food Recovery Program. 2) Payment by the Parties for their share of the costs for implementation of the Program.

SECTION 2. EFFECTIVE DATE

This MOU shall be effective on July 1, 2024 (“Effective Date”), shall supersede the Former MOU, and shall automatically renew each year for all Parties, unless a Party withdraws, in accordance with Section 20 (Withdrawal From MOU) and subject to a Party’s annual appropriations of funds.

SECTION 3. DEFINITIONS
The original 2013 Memorandum of Agreement entered into between the parties (and as may be amended from time to time) defined in detail the duties of the TAC Administrator, Contracting Agent, and Fiscal Agent, and those definitions from the MOA shall apply to this MOU. For ease of reference, those definitions are summarized below.

3.1 The TAC Administrator provides administration and management services to the TAC and carries out the annual workplan.

3.2 The Contracting Agent executes contracts with outside contractors, including the Administrator and the Fiscal Agent that have been requested and approved by the Implementation Committee.

3.3 The Fiscal Agent serves as the treasurer of the countywide funds and is responsible for collecting the Solid Waste Planning Fee from all solid waste disposal facilities and non-disposal facilities located within Santa Clara County.

3.4 The Program Manager is the entity contracted by the Contracting Agent on behalf of the RWRC to implement the Santa Clara County Food Recovery Program.

Other terms used in this MOU that relate to the Food Recovery Program (e.g., including but not limited to the term “Jurisdictions”) are used as defined in SB 1383 and any implementing regulations, as may be amended from time to time.

SECTION 4. RESPONSIBILITIES OF THE TAC ADMINISTRATOR AND CONTRACTING AGENT

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3 5.1 The TAC Administrator will provide administration and management of the Program. These duties include overseeing the work of the Program, development of the biennial budget, and inclusion of the Program in the annual work plan and budget. The costs to perform these duties will be included in the annual work plan and budget.

5.2 Contracts executed by the Contracting Agent with the Program, TAC Administrator and Fiscal Agent will be based on the approved budget for the Program. The Contracting Agent will provide an invoicing system to pay the Program Manager, TAC Administrator, and Fiscal Agent. The Contracting Agent shall provide the TAC Administrator with the proposed costs to perform these duties. The signatory Parties to this MOU (except when acting in their authorized capacities as Contracting Agent, TAC Administrator, and Fiscal Agent) are not direct parties to the third-party contracts entered into by those agents.

SECTION 5. RESPONSIBILITIES OF THE FISCAL AGENT

The Fiscal Agent will collect and receive funds from the Parties for implementation of the Countywide Food Recovery Program. The Countywide Food Recovery Program Funds will be segregated from the Countywide Solid Waste Program Funds in separately numbered and coded accounts that are readily identifiable as those containing Countywide Food Recovery Program Funds or Countywide Solid Waste Program Funds. The Fiscal Agent shall not expend, use or transfer any funds except in accordance with the annual work plan and budget.

The Fiscal Agent shall provide the TAC Administrator with the proposed costs to perform these duties.

SECTION 6. RESPONSIBILITIES OF THE PROGRAM MANAGER

The Program Manager will implement the Santa Clara County Food Recovery Program as described in Exhibit A.

SECTION 7. RESPONSIBILITIES OF THE PARTIES

The Parties will share costs of implementing the Program as described in Section 9 and undertake the duties assumed by the Jurisdictions as described in Exhibit A.

SECTION 8. BIENNIAL BUDGET

The TAC Administrator will prepare a biennial (two-year) budget that encompasses costs for the Program and Program Manager, the TAC Administrator, the Contracting Agent/Administration, and the Fiscal Agent.

Approval of the biennial budget shall follow the annual work plan and budget process as specified in the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee MOA.

SECTION 9. FUNDING

9.1 The Parties agree to share costs of the Program based on the number of edible food generators, as defined by the California Code of Regulations (14 CCR Section 18982) operating in their Jurisdiction on an annual basis, according to the following formula: Party’s Annual Share = (Total Budgeted Cost for Year

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4 ÷ Total Number of Edible Food Generators Under MOU) x Number of Edible Food Generators in Party’s Jurisdiction.

The Parties agree to pay annually for the costs identified in the biennial budget and approved through the annual work plan and budget process as specified in the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee MOA.

9.2 The initial Program budget will be based on the Fiscal Year 2024 allocation including costs for the Fiscal Agent, totaling THREE HUNDRED AND TEN THOUSAND DOLLARS ($310,000). No costs for TAC Administrator or Contracting Agent are included in the initial Program budget. Should cost recovery for the TAC Administrator or Contracting Agent be required in the future, these will be proposed during the annual work plan and budget process.

9.3 The Parties acknowledge that the Program Manager will evaluate the costs per Jurisdiction annually based on the number of generators operating within each Jurisdiction. Based on this evaluation, a cost adjustment will be projected to the second year of the biennial budget (see Section 8 above). The overall Program budget will not increase by more than TEN PERCENT (10%) of the prior year’s Program budget without prior approval by the RWRC.

9.4 The Fiscal Agent will annually submit to the Parties an invoice for the amounts due under this MOU by May 15th of each year. Each Party will make their payment to the Fiscal Agent based on the invoice amount within ninety (90) calendar days of receipt.

9.5 The Fiscal Agent will ensure that the Santa Clara County Food Recovery Program Fund account is segregated from the Solid Waste Program Fee Fund account managed pursuant to the TAC MOA.

9.6 Should any unspent funds remain in the Santa Clara County Food Recovery Program Fund account at the end of the fiscal year, disposition of those funds will be decided by the RWRC through the annual work plan and budget process, which could include: retaining surplus funds as a reserve, crediting Jurisdictions toward future payment allocations, dedicating funding to food recovery infrastructure, and providing supplemental food recovery outreach and education or other food recovery program activities.

9.7 Jurisdictions wishing to contribute additional funds for the edible food recovery enhancement program, implemented by the Program Manager, may elect to do so during the annual work plan and budget process. Any Jurisdiction opting into any voluntary enhancement program shall do so at its own discretion and at its own cost. The Fiscal Agent will include the additional enhancement program funding formally selected by the Jurisdiction in the annual invoice submitted to each Party by May 15th of each year.

9.8 In the event of a CalRecycle Implementation Schedule for a food recovery capacity shortfall identified during a Santa Clara County Edible Food Recovery Capacity Assessment, the Program budget may increase by more than TEN PERCENT (10%) of the prior year’s Program budget if needed to fund necessary capacity improvements as outlined in the CalRecycle Implementation Schedule, following prior approval of the budget increase by the RWRC.

SECTION 10. BOOKS AND ACCOUNTS

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5 The Fiscal Agent will keep complete and accurate financial records related to accomplishing the purposes of this MOU. Upon reasonable notice to the Fiscal Agent, any Party to this MOU may inspect the financial records related to this MOU.

SECTION 11. FURTHER ASSURANCES

Each Party will adopt, execute, and make any and all further assurances, documents, instruments and resolutions as may be reasonably necessary or proper to carry out the intention or to facilitate the Parties ’performance of their obligations under this MOU.

SECTION 12. REPRESENTATIONS AND WARRANTIES

Each Party represents and warrants to all other Parties as follows:

12.1 Authority: Each Party has the full legal right, power and authority under the laws of the State of California to enter into this MOU and to carry out all of its obligations herein.

12.2 Due Execution: Each Party’s representatives who sign this MOU are duly authorized to sign and bind their respective agency.

12.3 Valid, Binding, and Enforceable Obligations: This MOU has been authorized and executed by each Party and constitutes the legal, valid, and binding agreement of the Parties, and is enforceable according to its terms.

SECTION 13. REMEDIES NOT EXCLUSIVE

No remedy herein conferred upon or reserved in this MOU is exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy provided hereunder or hereafter existing in law or in equity or by statute or otherwise, and all remedies may be exercised without exhausting and without regard to any other remedy.

SECTION 14. INDEMNIFICATION

In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, the Parties agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the other Parties, their officers, board members, employees , and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying Party, its officers, employees , or agents, under or in connection with or arising out of any work , authority, or Jurisdiction delegated to such Party under this MOU (including but not limited to work engaged in or contracts entered into by a Party acting in their capacity as Contracting Agent, Program Manager, TAC Administrator, or Fiscal Agent.). No Party, nor any officer, board member, or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of any other Party hereto, its officers, board members, employees, or agents, under or in connection with or arising out of any work

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6 authority or Jurisdiction delegated to such other Party under this MOU, as indicated in this Section. The obligations set forth in this paragraph will survive termination and expiration of this MOU.

SECTION 15. SEVERABILITY

The provisions of this MOU shall be severable, and if any clause, sentence, paragraph, provision or other part shall be adjudged by any court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this MOU will be valid and binding on the Parties.

SECTION 16. AMENDMENTS

This MOU may only be amended by a written instrument signed by the Parties.

SECTION 17. COUNTERPARTS

This MOU may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

SECTION 18. USE OF ELECTRONIC SIGNATURES

Unless otherwise prohibited by law, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a writing as set forth in Evidence Code Section 1550. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the Parties. Should any Jurisdiction not permit electronic signatures only their copy of the MOU must be signed in the conventional manner.

SECTION 19. INTERPRETATION, PRIOR AGREEMENTS AND AMENDMENTS.

This MOU, including all Exhibits attached hereto, represents the entire understanding of the Parties as to those matters contained herein. In the event that the terms specified in any of the Exhibits attached hereto conflict with any of the terms specified in the body of this MOU, the terms specified in the body of this MOU shall control. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This MOU may be modified only by a written amendment duly executed by the Parties to this MOU. This MOU is intended to supplement the original MOA and does not replace the original MOA. The MOA shall remain in effect and to the extent that there are any contradictions between this MOU and the original MOA, the provisions in this MOU shall prevail.

SECTION 20. WITHDRAWAL FROM MOU

No individual Party may withdraw from this Agreement prior to July 1, 2025. Any party wishing to withdraw on or after July 1, 2025 must provide notice to the Contracting Agent on or before January 15 of each year. The Parties acknowledge that the Contracting Agent and each individual Party may recalculate Agreement costs pro rata in the event of any withdrawal from this Agreement and that this time is required in order to allow each remaining Party and the Contracting Agent to amend their respective budgets if needed. Any withdrawing Party must make full payments through the end of the-then current term ending

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7 on June 30. In no event shall this clause to be interpreted to prevent all Parties by unanimous mutual consent from withdrawing from this Agreement.

SECTION 21. NO LEGAL RELATIONSHIP

By entering into this MOU, the Parties are neither forming, nor do they intend to form a partnership, agency, or any other legal entity relationship. No Party is authorized to bind or to act as the agent or legal representative of the other Party for any purpose, and neither Party is granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of or in the name of any other Party.

SECTION 22. GOVERNING LAW, VENUE

This MOU has been executed and delivered in, and shall be construed and enforced in accordance with, the laws of the State of California. Proper venue for legal action regarding this MOU shall be in the County of Santa Clara.

MEMORANDUM OF UNDERSTANDING

AMONG LOCAL PUBLIC AGENCIES

IN SANTA CLARA COUNTY

FOR COUNTYWIDE FOOD RECOVERY PROGRAM

IN WITNESS HEREOF, the Parties have executed the MOU as of the last date set forth below:

City of Cupertino – City Manager Approval as to form, Cupertino City Attorney
Date: Date:

City of Gilroy- City Manager Approval as to form, Gilroy City Attorney
Date: Date:

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8 City of Los Altos – City Manager Approval as to form, Los Altos City Attorney
Date:

Date:

Town of Los Altos Hills – Assistant to the
Town Manager
Approval as to form, Los Altos Hills
Town Attorney
Date:

Date:

City of Milpitas – City Manager Approval as to form, Milpitas City Attorney
Date:

Date:

City of Morgan Hill, as a Party and as
Contracting Agent and TAC
Administrator
Approval as to form, Morgan Hill City
Attorney
Date:

Date:

City of Mountain View- Acting Public
Works Director
City of Mountain View – Finance and
Administrative Services Director
Date:

Date:

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9 City of Mountain View- City Manager Approval as to form, Mountain View Senior Assistant City Attorney
Date:

Date:

City of Mountain View-Assistant City
Clerk

Date:

West Valley Solid Waste Management
Authority (on behalf of the cities of
Campbell, Monte Sereno, Saratoga, and
the Town of Los Gatos) -Executive
Director
Approval as to form, West Valley Solid
Waste Management Authority General
Counsel

Date:

City of Santa Clara - City Manager Approval as to form, Santa Clara City Attorney

Date:

City of Palo Alto – City Manager Approval as to form, Palo Alto Assistant City Attorney
Date:

Date:

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10 City of Sunnyvale – City Manager Approval as to form, Sunnyvale Interim City Attorney

Date:

County of Santa Clara, as a Party and as
Fiscal Agent - Chief Operating Officer
Approval as to form and legality, Santa
Clara County Deputy County Counsel

Date:

City of San José Approval as to form, San José City
Attorney

Date:

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1 EXHIBIT A

PROGRAM OVERVIEW

This document describes the Santa Clara County Food Recovery Program, serving as the food recovery program (“Program”) on behalf of all jurisdictions (“Jurisdictions ”) within the County, coordinating with the Jurisdictions performing their own enforcement. The details of the Program conform to the California Code of Regulations (14 CCR Section 18995.2 (f)(8), 14 CCR Section 18991.2 14 CCR Section 18991.1).

I. PURPOSE
The Countywide Program benefits the Jurisdictions by alleviating the need for duplicative staff, cost analysis, capacity assessment, expenditures for infrastructure, labor, administration, and record keeping for the edible food recovery activities in their Jurisdiction. Additionally, this approach creates one uniform, standardized, and coordinated effort throughout the incorporated and unincorporated areas of Santa Clara County.

II. RESPONSIBILITIES
Jurisdictions
A. Shall develop a method to accept and keep records of written complaints, including anonymous complaints, regarding an entity that may be potentially non-compliant. Full details of the complaint will be communicated to the Program Manager within 10 days of receipt.

B. Shall refer all questions received about the Program portions of SB 1383 implementation to the Program Manager within 10 business days. Jurisdictions should include the Program Manager in all communications to generators or food recovery organizations or services.

C. Shall maintain access to the shared database program to stay in compliance with the intent and structure of the Implementation Record which shall follow the format and elements as promulgated by CalRecycle, or other relevant statutory or administrative requirements.

D. On an annual basis, Jurisdictions shall review and provide feedback to the Program Manager on inspection protocol, triggers, and enforcement processes. Cities and unincorporated County are encouraged to follow the procedures and stay within the suggested timeline for enforcement action set forth in the Monitoring Procedures document.

E. When informed by the Program Manager, Jurisdictions will work with the Program Manager in carrying out enforcement action with edible food generators or food recovery organizations or

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2 services not in compliance. The Program Manager will recommend edible food generators or food recovery organizations or services for enforcement action, and the enforcement action taken will be at the discretion of the Jurisdiction. All enforcement action will be tracked in the Program’s shared database, so it is readily available to the Program Manager, Jurisdictions, and can become part of the Implementation Record.

F. Jurisdictions will determine what large events are happening in their jurisdiction. Within 10 days of an applicant being issued a permit for a new large event, as defined below, the Jurisdiction will notify the Program about the event, and share contact information for the event organizer. This is only for large events that meet the CalRecycle threshold for the definition:
“Large Event” means an event, including, but not limited to, a sporting event or a flea market, that charges an admission price, or is operated by a local agency, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event. By September 1 of each year, Jurisdictions will review the large events included in the shared database of regulated entities, to update the database to ensure no recurring events have been missed.

G. Shall work with the Program Manager on any related issues requiring Program assistance or lead in resolving the issue(s) related to complaints and/or noncompliance for any edible food generator or Food Recovery Organization or Service.

Program Manager

The Program Manager shall responsibly execute the management of the Santa Clara County Food Recovery Program (the Program). The Program Manager:

A. Shall develop and coordinate a standardized and uniform method to comply with California Code of Regulations, Title 14, Division 7, Chapter 12, “Short-Lived Climate Pollutants.” The Program Manager will operate within the Jurisdiction’s boundaries and replace the need for the Jurisdiction to create such a program on its own.

B. In the event of a CalRecycle Implementation Schedule for a food recovery capacity shortfall identified during a Santa Clara County Edible Food Recovery Capacity Assessment, The Program will work to develop the Implementation Schedule with CalRecycle and manage the effort to fund necessary capacity improvements as outlined in the Schedule. Additional Base Program costs beyond the allowable 10% yearly increase may be needed. The RWRC will review and approve or deny any needed budget changes. Funds will be collected based on the number of edible food generators and their auxiliary sites in each Jurisdiction.

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3 C. Shall conduct a review, each fiscal year, of potential new edible food generators, to ensure that as businesses open in Santa Clara County the appropriate regulated entities are added to the lists. Closing businesses will be identified during the reporting process and be eliminated from the lists.

D. Shall provide the Jurisdictions with the information and data necessary for the Jurisdictions to make their required reports to the California Department of Resources, Recycling and Recovery (“CalRecycle”).

E. Shall retain records of inspections in the Jurisdictions for a minimum of five (5) years.

F. Shall notify the Jurisdictions promptly about any related issues that require the Jurisdictions ’ assistance or to request the Jurisdictions lead in resolving the issue(s) that arise related to non- compliance.

G. Shall fulfill and endeavor to exceed the annual education requirement for the Jurisdictions and provide the data needed for Jurisdictions to complete required CalRecycle reports.

H. Solicit required Food Recovery Reports from generators and Food Recovery Organization/Services, compile and provide the results to Jurisdictions for inclusion in the Implementation Records, and to Santa Clara County for use in future Capacity Planning efforts.

I. Shall conduct inspections and monitoring in compliance with CalRecycle expectations for Edible Food Generators and Food Recovery Organizations and Services.

J. The Program shall supply appropriate content for a web site, including a list of Food Recovery Organizations and Services (to be updated at least annually) and be accessible to Edible Food Generators.

K. The Program shall represent the interests of the Program with other entities, counties, and CalRecycle.

L. The Program will develop procedures and timelines for cities and unincorporated County to encourage uniformity in enforcement, which the Cities and County would be encouraged to follow.

M. The Program shall create reports about Program activities each year in September, ahead of the budgeting process for the next fiscal year. These reports shall include a narrative about the Food Recovery Program activities, statistics, total number of pounds of food recovered as reported by

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4 Edible Food Generators and Food Recovery Organizations (“FROs”), and any additional information needed by the Jurisdictions. Statistics about food waste prevention and food recovery in Santa Clara County will be shared publicly.

Edible Food Recovery Enhancements Program
The Edible Food Recovery Enhancements Program are any activities, annually identified by the Program Manager, that the Program Manager will undertake to ensure efficient food recovery and food waste prevention should the Jurisdictions choose to fund the chosen projects. Projects may include, but are not limited to, strategic capacity enhancements, projects that promote the efficient recovery of surplus food or the prevention of surplus food, as well as direct support of ongoing recovery activities, subject to approval of the RWRC.

Technical Advisory Committee Contracting Agent
A. The Contracting Agent will execute a contract with the Program Manager, chosen by the TAC, for the services outlined in the responsibilities above. The Contract will go into greater detail to ensure that all SB 1383 regulatory imperatives are handled by the Program.

B. The Contracting Agent will set up an invoicing system to pay the Program for the responsibilities outlined above.

III. ENFORCEMENT RESPONSIBILITIES FOR JURISDICTIONS
Each Jurisdiction is responsible for working with the Program on enforcement actions. Although the Jurisdiction is ultimately responsible for enforcement, the Program will support the process by drafting enforcement notices and necessary documents and by providing relevant information about previous inspections and attempts to support compliance. The Program will identify those businesses that need to be evaluated for enforcement action and will work with a Jurisdiction to ensure that CalRecycle compliant documentation is maintained.

IV. RECORDKEEPING AND REPORTING
The Program will complete all the record keeping tasks necessary for the Food Recovery Program portions of SB 1383, including records necessary for the Implementation Record. All necessary records will be stored digitally within 5 days of creation, and Jurisdictions will have real-time access to all these records.

The Program shall create a very brief report about Program activities at the end of each fiscal year.

Most programmatic information will be shared in September in the annual report.

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West DocuSign Envelope ID: F14D4D16-76CD-4EFE-B52C-B1A3240516C7

MEMORANDUM OF

UNDERSTANDING AMONG LOCAL

PUBLIC AGENCIES IN

SANTA CLARA COUNTY

FOR FOOD RECOVERY PROGRAM COSTS
SECTION 1. OVERVIEW
This Memorandum of Understanding (“MOU”) is between the cities of Cupertino, Gilroy, Los Altos, Milpitas, Morgan Hill, Mountain View, Palo Alto, San José, Santa Clara, and Sunnyvale; the town of Los Altos Hills; the County of Santa Clara; and the West Valley Solid Waste Management Authority on behalf of its member agencies, the cities of Campbell, Monte Sereno and Saratoga; and town of Los Gatos; collectively “Parties” or individually as a "Party." SECTION 2. RECITALS
WHEREAS, the signatory Parties are also “PARTIES” to the Memorandum of Agreement for the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee, which is a Committee of the County of Santa Clara Recycling and Waste Reduction Commission that advances the interests of Party jurisdictions by performing technical and policy review to inform parties and advise the Commission on solid waste management issues, and bring together varied expertise and viewpoints for planning and implementing the Commission approved annual workplan and budget;
WHEREAS, the Parties have previously agreed to jointly fund the cost of a countywide edible food recovery program to satisfy their respective obligations under SB 1383 (2016) and the corresponding regulations;
WHEREAS, the County of Santa Clara is the Fiscal Agent for the Technical Advisory Committee (TAC) to the Santa Clara County Recycling and Waste Reduction Commission and the City of Morgan Hill is the Administrator and Contracting Agent for the TAC; WHEREAS, the City of Morgan Hill, as Program Administrator and Contracting Agent, has contracted with Joint Venture Silicon Valley to implement and manage the countywide Food Recovery Program (“Program”) for Fiscal Year 2023/24;
WHEREAS, the Parties desire to execute this MOU to provide for their respective share of costs for the Program;
NOW, THEREFORE, for good and valuable consideration, the adequacy and sufficiency of which is hereby acknowledged, the Parties agree as follows:

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West DocuSign Envelope ID: F14D4D16-76CD-4EFE-B52C-B1A3240516C7 SECTION 3. PURPOSE OF THE MOU
The purpose of this MOU is to establish a means of requiring:

Payment by the Parties for their share of the costs for implementation of the Program.

SECTION 4. EFFECTIVE DATE
This MOU shall be effective upon execution of this MOU by all Parties (“Effective Date”).

SECTION 5. PAYMENTS UNDER THIS MOU
For purposes of the Program, the County of Santa Clara is the Fiscal Agent and the City of Morgan Hill is the TAC Administrator and Contracting Agent, as specified in the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee MOA.

The Parties agree to share costs for the services as described in Exhibit A of this MOU.

The County of Santa Clara will, within thirty (30) days of the Effective Date of this MOU, submit to the other Parties an invoice for the amounts due under the MOU. Each party will make their payment to the County of Santa Clara based on the invoice amount.

SECTION 6. RECORDS AND ACCOUNTS
The County of Santa Clara will keep complete and accurate financial records related to accomplishing the purposes of this MOU. Upon reasonable notice to the County of Santa Clara, any Party to this MOU may inspect the financial records related to this MOU.

SECTION 7. FURTHER ASSURANCES
Each Party will adopt, execute, and make any and all further assurances, instruments and resolutions as may be reasonably necessary or proper to carry out the intention or to facilitate the Parties’ performance of their obligations under this MOU.

SECTION 8. REPRESENTATIONS AND WARRANTIES
Each Party represents and warrants to all other Parties as follows:

Authority: Each Party has the full legal right, power and authority under the laws of the State of California to enter into this MOU and to carry out all of its obligations herein.

Due Execution: Each Party’s representatives who sign this MOU are duly authorized to sign and bind their respective agency.

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West DocuSign Envelope ID: F14D4D16-76CD-4EFE-B52C-B1A3240516C7 SECTION 9. REMEDIES NOT EXCLUSIVE
No remedy herein conferred upon or reserved in this MOU is exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing in law or in equity or by statute or otherwise, and all such remedies may be exercised without exhausting and without regard to any other remedy.

SECTION 10. INDEMNIFICATION
In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the Parties pursuant to Government Code Section 895.6, the Parties agree that all losses or liabilities incurred by a Party shall not be shared pro rata but, instead, the Parties agree that, pursuant to Government Code Section 895.4, each of the Parties hereto shall fully indemnify and hold each of the other Parties, their officers, board members, employees , and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying Party, its officers, employees , or agents, under or in connection with or arising out of any work , authority, or jurisdiction delegated to such Party under this MOU. No Party, nor any officer, board member, or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of any other Party hereto, its officers, board members, employees, or agents, under or in connection with or arising out of any work authority or jurisdiction delegated to such other Party under this MOU. The obligations set forth in this paragraph will survive termination and expiration of this MOU.

SECTION 11. SEVERABILITY
The provisions of this MOU shall be severable, and if any clause, sentence, paragraph, provision or other part shall be adjudged by any court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this MOU will be valid and binding on the Parties.

SECTION 12. AMENDMENTS
This MOU may only be amended by a written instrument signed by the Parties.

SECTION 13. COUNTERPARTS
This MOU may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

SECTION 14. USE OF ELECTRONIC SIGNATURES
Unless otherwise prohibited by law, the Parties agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a transmission by

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West DocuSign Envelope ID: F14D4D16-76CD-4EFE-B52C-B1A3240516C7 facsimile, electronic mail, or other electronic means of a copy of an original signed contract in a portable document format. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the City of Morgan Hill. For the purposes of this agreement, the approved methods of signing shall be via DocuSign or original ink signature signed in counterpart and scanned over to the CITY via electronic mail.

SECTION 15. INTERPRETATION, PRIOR AGREEMENTS AND AMENDMENTS.

SECTION 16. NO LEGAL RELATIONSHIP
By entering into this MOU, the Parties are neither forming, nor do they intend to form a partnership, agency, or any other legal entity relationship. No Party is authorized to bind or to act as the agent or legal representative of the other Party for any purpose, and neither Party is granted any express or implied right or authority to assume or create any obligation or responsibility on behalf of or in the name of any other Party.

SECTION 17. GOVERNING LAW, VENUE
This MOU has been executed and delivered in, and shall be construed and enforced in accordance with, the laws of the State of California. Proper venue for legal action regarding this MOU shall be in the County of Santa Clara.

IN WITNESS OF, the Parties have executed the MOU as of the last date set forth below:

DocuSigned by:

Pamela Wu

City SPCUPEHino - City Manager
Date: 5/2/2023
DocuSigned by:

Jimmy Forlas

City of ‘Gilroy - City Manager
Date: 5/2/2023
DocuSigned by:
iis
Approvarae ‘form, Cupertino
Date: 5/1/2023
DocuSigned by: DocuSigned by:

Audy Falur oo

70... 1464...

Approval as to form, Gilroy
Date; 5/4/2023 5/1/2023

10.b
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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West DocuSign Envelope ID: F14D4D16-76CD-4EFE-B52C-B1A3240516C7 [al rid Eanland,
City of SPARES - City Manager
Date: 5/1/2023
DocuSigned by:
{ peter Pirmyad.

Tone os Altos Hills - Town Manager
DocuSigned by:
( Ashwini bautak
City SP Rtipitts - City Manager /actiN“G
Date: 5/10/2023
DocuSigned by:
( Claritin Tuer
City OP MOrSaV Hill - City Manager
Date: 5/5/2023
DocuSigned by:

Kinbra McCarthy

City of MIOUABIN View - City Manager
Date: 5/5/2023
DocuSignedby: by:
( Daun S Cameron
‘Ci BERPititain View - Public Works Director
Date: 5/1/2023
Sarah rgrate
City of San Jose - Cty Manager
Date: 5/26/2023
DocuSigned by:
<2
City oF SHA CMita - City Manager
Date: 5/7/2023
DocuSigned by:

— 0831
Approval as to form, Los Altos
Date: 5/1/2023
DocuSigned by:
[ Stow fates

Approval 4816 40%m, Los Altos Hills
Date: 5/19/2023
(— DocuSigned by:

Approval #8 28"rotfi; Milpitas
Date: 5/1/2023
(Donald, Larkin

Approvat a¢tofétm, Morgan Hill
Date: 5/1/2023
DocuSigned by:
ans FE arly
Appr aPsigaefetm, Mountain View
[zy by:

T2ACA8DEF64B4BF...

City of Mountain View - Finance
Administrative Services Director
Date: 5/2/2023
[ploenclosl
Approval as to form, San Jose
Date: L
DocuSigned by:
(us ML. Hare

Approval as" 0 fori, Santa Clara (City)
Date: 5/22/2023

10.b
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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West DocuSign Envelope ID: F14D4D16-76CD-4EFE-B52C-B1A3240516C7 DocuSigned by:
{ Lend Stufuns
City oF SuBhy Vale - City Manager
Date: 5/2/2023
DocuSigned by:

Matthew Hada
County Sf Sant?’ tara - Director of Procurement
Date: 5/1/2023

DocuSigned by:

She tito
— oe
West Valley Solid Waste Management
Authority - President
Date: 5/1/2023
DocuSigned by:
| Ed Stiksda
City of Palo AltS = City Manager
Date: 5/5/2023

DocuSigned by:

Rebeca Meow

MN
Approval 48 to form, Sunnyvale
Date: 5/1/2023
DocuSigned by:

Willi Mauer

Approvill's2’fo'féim, Santa Clara County
Date: 5/1/2023
DocuSigned by:
{ birdun Powell

Approval a8 to'forin, West Valley Solid
Waste Management Authority
Date: 5/8/2023
DacuSigned by:
[ fae ee

Approval as to form, City of Palo Alto
Date: 5/11/2023

10.b
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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West DocuSign
Envelope ID: F14D4D16-76CD-4EFE-B52C-B1A3240516C7

EXHIBIT A

COSTS AND
SCOPE

OF SERVICES

Froposed
Jurisdiction
Contributions for Base Program and Infrastructure - FY 23-24 Program Costs

Initial
HBase Program |
Base Program
Initial Local Asst. | program
—
|
Contract Cost
| Contribution
Potential
-|Grant (LAG).
“pledge” |
Tier1
|
Tier2
Total
|
($133 per
($133 per
|
Infrastructure | Enhancement
Jurisdictions
{All
ocation
|
19% of LAG | Generators
| Generators | Generators |
generator)
|
generator)
| Enhancements | Contribution

55 ,495
77 ,953
75,255

7,980
11 ,970
7,847
Campbell
Cupertino
Gilroy
10,544

11 49
60 14,811

10 80
90 14,298
11 48
59 7,980
11,970
7,847
2,564
2,841
6,451
2,564
2,841
6,451

Los Altos 41,038 7,797 7 34 41 5,453 5,453 2,344 2,344

Los Altos Hills
20,000

3,800
0 2
2 266
266
3,534
3,534

Los Gatos
41,465
7,878
10 45
55 7,315
7,315
563
563
Milpitas
100
,259
19,049
21 92
11 3
15,029
15,029
4,020
4,020

Monte
Sereno
133

133

3,66
7 3,66
7 Morgan
Hill
Mountain
View
63,156
12,000

15 43
58 109,638
20,831
17 11
4 131
7,714
17,423
7,714
17,423
4,286
3,408
4,286
3,408 |

Palo Alto
89,759
17,054
7 106
11 3
15,029
15,029
2,025
2,025

San Jose
1,351,654
256,814
212
787
999

132,702
132,702
124,11
2 124,11
2 Santa Clara
Saratoga
Sunnyvale
172,504
32,77
6 40
162
202
41,085
7,806
2 26
28 202,777

39,368
26 144

170
26,866

3,724
22 ,610
22 ,610
26,866
3,724
5,910
4,082
5,910
4,082
16,758
16,758

$
$
$
$
$
$
$
20,000/$ 3,800 0 1 1
$
$
$
$
$
$
$

Dh] Se] UE] UE UE UE OE] UE) TP] UD | OP]
LV] UE OAL OM] WIM) MOM) OH] wm] Ow
Unincorporated SCC
113,337 | $
23,000

13 35
48 6,384
6,384
16,616
16,616

Ar] el A] HE] | MH] | HLM] HW] | MH) VIO
Totals
ER EN Ee EL EL aL EL LL UL Ue] UF] UF] Ue)
VLU] VM] MA) MW] WIM] AO] MH) wW) wo) non
2,575 ara
$
491,627
402
1768
2170
288,445|$
288,445
203,182 |
$
203,182

West Valley Cities: FY 23-24 éainn
ibudens funded by West Valley Solid Waste
Managen ment —

$
19,152
S$
10,876
‘Note: Initial program pledge was based on program cost estimate before program establishment and expences
with program Sue
of work.

Enhancement
Contributions may be reduced,
but not the Base Program
Contribution.

Contributions to Infrastructure Enhancements
by each agency are subject to change pending final saa
rduals by each Agency.

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement DocuSign Envelope ID: F14D4D16-76CD-4EFE-B52C-B1A3240516C7 EXHIBIT A:

SCOPE OF SERVICES
Base Program — Countywide Food Recovery Program Management From July 1, 2023 to June 30, 2024, Joint Venture Silicon Valley will run the Santa Clara County Food Recovery Program, serving as the food recovery program (Program) on behalf of all jurisdictions (Jurisdictions) of the Parties, and coordinating with any Party performing their own enforcement.

The Base Program
1 10.

Will develop and coordinate a standardized and uniform method to comply with California Code of Regulations, Title 14, Division 7, Chapter 12, “Short-Lived Climate Pollutants.” The Program will operate within the Party’s boundaries and replace the need for the Party to create such a program on its own.

Each year by March, the Program will conduct a review of new Tier 1 and Tier 2 Entities, to ensure that as businesses open in Santa Clara County, the appropriate regulated entities are added to the Tier 1 and Tier 2 lists. Closing businesses will be identified during the reporting process, and be eliminated from the lists.

Provide Parties with requirements for inclusion in the ‘large event’ list requested from each Party, as well as provide electronic materials for distribution for large event planners.

Shall provide Parties with the information and data necessary for the Parties to make their required reports to CalRecycle.

Shall retain records of inspections for each Party for a minimum of five (5) years.

Shall notify the Party promptly about any related issues that require the Party’s assistance or to request the Party lead in resolving the issue(s) that arise related to non-compliance.

Shall fulfill the annual education requirement for the Parties and provide the data needed for the Parties to complete required CalRecycle reports.

Shall conduct generator and Food Recovery Organization/Services requests for reports, compile the results, and communicate those results to the jurisdictions for inclusion in the Implementation Record Data Summary, and to Santa Clara County for use in future Capacity Planning efforts.

Shall conduct inspections and monitoring in compliance with CalRecycle expectations for Tier One businesses, Tier Two entities and Organizations, and Food Recovery Organizations and Services.

The Program shall supply appropriate content for the web site, SCCFoodRecovery.org, as well as a list of Food Recovery Organizations and Services. The list will be annually updated and made accessible to Tier 1 and 2 Entities.

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West DocuSign Envelope ID:

11. 12.

13. F14D4D16-76CD-4EFE-B52C-B1A3240516C7
The Program leadership shall represent the interests of the Program with other entities, Counties, and CalRecycle.

The Program leadership shall create reports about Program activities at the end of each fiscal year. These reports shall include monitoring statistics, details on overall compliance, compliance in certain sectors, total number of pounds of food recovered, and a summary of all enforcement actions taken.

Statistics about food recovery in Santa Clara County will be shared on the Office of Sustainability website as part of the Sustainability Master Plan Data Dashboard and the Annual Sustainability Report.

All Parties to this MOU will receive the Base Program services.

Infrastructure Enhancements Program
As shown in Exhibit A of this MOU, jurisdictions have chosen to contribute to the edible food recovery Infrastructure Enhancements Program which will direct additional food recovery resources to participating jurisdictions between July 1, 2023 and June 30, 2024. The Infrastructure Enhancements Program will include two subprograms, described as follows:
1) Small Capacity Grants. Grants will be issued to increase the food recovery capacity of food 2)
recovery organizations that serve contributing jurisdictions. Applications will be solicited, awards will be issued, and funds will be distributed. Joint Venture Silicon Valley will provide information for Annual Reporting that shows how contributions to this subprogram were spent on behalf of each participating Agency.

Food Waste Prevention Classes. A webinar/in-person series will be advertised for different sectors regulated under SB 1383 (e.g., restaurants, hospitals, schools, large events). The series will promote food waste prevention measures specific to each regulated sector, provide food recovery tips and best practices, and teach businesses and organizations how to comply with SB 1383 and local ordinances. The series will start with Tier 2, and then move into Tier 1 groups that answered ‘zero pounds' in their reports, if funding allows. Joint Venture Silicon Valley will provide information for Annual Reporting that shows how contributions to this subprogram were spent on behalf of each participating Party.
fii

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Certificate Of Completion
Envelope Id: F14D4D1676CD4EFEB52CB1A3240516C7
Subject: Complete with DocuSign: FRP_SharedCostAgrmt_MOU_removed West Valley Cities final_4sigsMV_5.1.23.pdf Source Envelope:

Document Pages: 9
Certificate Pages: 12
AutoNav: Enabled
Envelopeld Stamping: Enabled
Signatures: 27
Initials: 0
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
Record Tracking
Status: Original
5/1/2023 9:56:15 AM
Security Appliance Status: Connected
Storage Appliance Status: Connected
Signer Events
Andy Faber
[email protected]
City Attorney
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/4/2023 2:33:49 PM
ID: 019fdeOb-2610-414b-b6c6-f1 cdbd3fbdb8
Ashwini Kantak
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/10/2023 10:15:19 AM
ID: 83d99ce9d-2d92-432f-bb5e-f3fae0bf276d
Caio Arellano
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/11/2023 6:02:19 AM
ID: b8fef4c7-5026-4fad-93f9-5c1501443e4c
Christina Turner
[email protected]
City Manager
City of Morgan Hill
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Holder: City Clerk's Office
[email protected]
Pool: StateLocal
Pool: City of Morgan Hill
Signature :
[a Faby
1979CSEBS5B68470...

Signature Adoption: Pre-selected Style
Using IP Address: 68.121.158.241
[in bantak
OCFA2D4A9CB804E4...

Signature Adoption: Pre-selected Style
Using IP Address: 50.59.22.2
(eas by:
81C299FA3B9340E...

Signature Adoption: Uploaded Signature Image
Using IP Address: 98.47.120.62
DacuSigned by:

Cluvistiva Tuer
6D0198AF549944D...

Signature Adoption: Pre-selected Style
Using IP Address: 107.115.112.18
DocuSign
Status: Completed
Envelope Originator:

City Clerk's Office
17575 Peak Ave
Morgan Hill, CA 95037
[email protected]
IP Address: 152.44.239.118
Location: DocuSign
Location: DocuSign
Timestamp
Sent: 5/1/2023 11:08:40 AM
Viewed: 5/4/2023 2:33:49 PM
Signed: 5/4/2023 2:34:21 PM
Sent: 5/1/2023 11:08:42 AM
Viewed: 5/10/2023 10:15:19 AM
Signed: 5/10/2023 10:15:43 AM
Sent: 5/1/2023 11:08:53 AM
Resent: 5/1/2023 11:55:46 AM
Viewed: 5/11/2023 6:02:19 AM
Signed: 5/11/2023 6:02:43 AM
Sent: 5/1/2023 11:08:44 AM
Viewed: 5/5/2023 5:52:03 AM
Signed: 5/5/2023 5:53:50 AM

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Signer Events
Accepted: 5/5/2023 5:52:03 AM
ID: deOd7e7d-5dcf-4 1b1-a264-c221890ae38b
Christopher D. Jenson
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 11:16:38 AM
ID: 1b0621ee-947f-4d4e-9466-6edb7d3f2f06
Dawn S Cameron
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 4:53:11 PM
ID: 3be33e4c-c54b-407a-a33e-06220619193c
Derek Rampone
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 11:21:57 AM
ID: a0de42d3-bc19-4af4-91ff-d09e62fa3f69
Diana Fazely
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/3/2023 2:22:56 PM
ID: 274e1052-6eb2-41dc-abdb-7e1a7fc9dc69
Donald Larkin
[email protected]
City Attorney/Risk Manager
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 11:15:41 AM
ID: 9330dec4-8ed0-4b73-b974-f34f502102bc
Signature
DocuSigned by:

Chyisoplur 0. Junsou
4EAGB27CD2B74E4...

Signature Adoption: Pre-selected Style
Using IP Address: 136.24.22.194
DocuSigned by:
( Daun S Cameron
431D4C48F33C49F...

Signature Adoption: Pre-selected Style
Using IP Address: 38.99.34.33
(cz by:
‘72ACABDEF64B4BF...

Signature Adoption: Drawn on Device
Using IP Address: 38.99.34.33
DocuSigned by:

Diana Fanuly
‘7FF9A7208CBB4D1...

Signature Adoption: Pre-selected Style
Using IP Address: 73.189.195.168
DocuSigned by;
Donald (arkiv.
45E6F0273EA2464...

Signature Adoption: Pre-selected Style
Using IP Address: 71.93.229.68
Timestamp
Sent: 5/1/2023 11:08:39 AM
Viewed: 5/1/2023 11:16:38 AM
Signed: 5/1/2023 11:17:56 AM
Sent: 5/1/2023 11:08:43 AM
Viewed: 5/1/2023 4:53:11 PM
Signed: 5/1/2023 4:55:46 PM
Sent: 5/1/2023 11:08:43 AM
Viewed: 5/1/2023 11:21:57 AM
Signed: 5/2/2023 3:28:25 PM
Sent: 5/3/2023 1:48:51 PM
Viewed: 5/3/2023 2:22:56 PM
Signed: 5/3/2023 2:23:07 PM
Sent: 5/1/2023 11:08:50 AM
Viewed: 5/1/2023 11:15:41 AM
Signed: 5/1/2023 11:16:52 AM

10.b
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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Signer Events
Ed Shikada
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/3/2023 11:01:32 AM
ID: 9d7491c6-779e-4f4b-b273-c1976a41b3f0
Gabriel Engeland
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 8:37:12 PM
ID: 230984e0-2f4e-4f90-b622-22a859fa83 1d
Jimmy Forbis
[email protected]
City Administrator
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/2/2023 10:43:36 PM
ID: 079f1c50-59b3-4ecc-83b7-32815a1f536d
Jolie Houston
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 11:54:20 AM
ID: 042df2e9-3f1d-457d-ae19-cc9eed44d0e1
Jovan D. Grogan
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/5/2023 7:45:07 AM
ID: 5e9934b0-786a-4665-8462-3e1f503a84ca
Kent Steffens
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Signature
DocuSigned by:

F2DCA19CGCED4F9..,
Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
DocuSigned by:

Cabri. Crguland.
1221E448CC844F8...

Signature Adoption: Pre-selected Style
Using IP Address: 98.248.50.11
DocuSigned by:
(sin Fovlis
FAB7DCFFD9254E3...

Signature Adoption: Pre-selected Style
Using IP Address: 71.93.228.96
DocuSigned by:

Signature Adoption: Pre-selected Style
Using IP Address: 68.121.158.241
DocuSigned by:
ase SEADSEDEDSC343A..,
Signature Adoption: Drawn on Device
Using IP Address: 172.58.88.157
Signed using mobile
DocuSigned by:
kent Steffns
OC91E613C0AS45F...

Signature Adoption: Pre-selected Style
Using IP Address: 198.94.221.66
Timestamp
Sent: 5/1/2023 11:08:53 AM
Viewed: 5/3/2023 11:01:32 AM
Signed: 5/5/2023 9:56:54 AM
Sent: 5/1/2023 11:08:42 AM
Viewed: 5/1/2023 8:37:12 PM
Signed: 5/1/2023 8:37:25 PM
Sent: 5/1/2023 11:08:41 AM
Viewed: 5/2/2023 10:43:36 PM
Signed: 5/2/2023 10:43:53 PM
Sent: 5/1/2023 11:08:45 AM
Viewed: 5/1/2023 11:54:20 AM
Signed: 5/1/2023 11:54:44 AM
Sent: 5/1/2023 11:08:49 AM
Viewed: 5/5/2023 7:45:07 AM
Signed: 5/7/2023 11:56:55 AM
Sent: 5/1/2023 11:08:48 AM
Viewed: 5/2/2023 8:36:02 PM
Signed: 5/2/2023 9:33:31 PM

10.b
Packet Pg. 169
Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Signer Events
Accepted: 5/2/2023 8:36:02 PM
ID: 40f98182-e26c-4 1ee-b04a-2bf2d2e405ed
Kimbra McCarthy
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/5/2023 7:14:02 AM
ID: 9¢3ea2b7-42c9-42a5-b420-67899d0a5625
Kirsten Powell
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/8/2023 8:30:54 AM
ID: 39ea5193-a104-46d7-be4b-b83b88d7cd9b
Luis M. Haro
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 1:21:38 PM
ID: 5cfd82b9-2c82-46c5-a742-65b978ec1475
Matthew Hada
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 11:35:37 AM
ID: 404a699c-fd90-4e90-b4ad-ffa503a42a9d
Michael Mutalipassi
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 3:19:26 PM
ID: cc4c3433-1741-4297-a0fe-337910c7d908
Signature
DocuSigned by:

Kimnbra McCarthy
253F6B1B9DFAGAB...

Signature Adoption: Pre-selected Style
Using IP Address: 104.9,124.184
Signed using mobile
DocuSigned by:
hivsten Powell
OOF 15E0E71244B4...

Signature Adoption: Pre-selected Style
Using IP Address: 73.63.184.160
Signed using mobile
DocuSigned by:
(wis M. Kare
0990184AB84C4B7...

Signature Adoption: Pre-selected Style
Using IP Address: 38.99.114.1
DocuSigned by:

Matthew Hada
CEAOS0A27EBB4EA...

Signature Adoption: Pre-selected Style
Using IP Address: 146.74.1.98
[A—
Signature Adoption: Uploaded Signature Image
Using IP Address: 50,59.22.2
Timestamp
Sent: 5/1/2023 11:09:04 AM
Viewed: 5/5/2023 7:14:02 AM
Signed: 5/5/2023 7:16:33 AM
Sent: 5/1/2023 11:08:59 AM
Viewed: 5/8/2023 8:30:54 AM
Signed: 5/8/2023 8:31:40 AM
Sent: 5/1/2023 11:08:52 AM
Viewed: 5/1/2023 1:21:38 PM
Signed: 5/22/2023 12:39:39 PM
Sent: 5/1/2023 11:09:03 AM
Viewed: 5/1/2023 11:35:37 AM
Signed: 5/1/2023 11:35:53 AM
Sent: 5/1/2023 11:08:51 AM
Viewed: 5/1/2023 3:19:26 PM
Signed: 5/1/2023 3:21:21 PM

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Packet Pg. 170
Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Signer Events
Pamela Wu
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/2/2023 8:37:35 AM
ID: 1c99465f-8f73-49c8-9b49-c01366e90343
Peter Pirnejad
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 1:20:03 PM
ID: 8a6c1047-d9f6-4897-b1c2-4d6b8f05017b
Rebecca Moon
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 11:12:13 AM
ID: 397f2456-e21a-4906-98b9-783350938b4 1
Rob Hilton
[email protected]
President
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 11:09:58 AM
ID: 8f58b590-3 1f7-4c05-b2de-a151a100f0ad
Steve Mattas
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/5/2023 9:27:32 AM
ID: 1206ba84-549d-4f5a-ac2d-a9c8ab5i27bd
Willie Nguyen
willie. [email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Signature
DocuSigned by:

Pamela Wu
AA9Q2FF3291C7438...

Signature Adoption: Pre-selected Style
Using IP Address: 64.165.34.3
DocuSigned by:

Pur Pimyad,
7138697393344A2...

Signature Adoption: Pre-selected Style
Using IP Address: 50.239.26.174
DocuSigned by:
[recs Moou.
4004884861 14497...

Signature Adoption: Pre-selected Style
Using IP Address: 98.37.126.212
DocuSigned by:
[<3 tibow
4A0B27640FF 1481...

Signature Adoption: Pre-selected Style
Using IP Address: 24.6.115.57
DocuSigned by:

Stu Mattes
6347662C49394C0...

Signature Adoption: Pre-selected Style
Using IP Address: 174.197.76.94
Willi Naan.

A1756187CF04415...

Signature Adoption: Pre-selected Style
Using IP Address: 146.74.60.99
Timestamp
Sent: 5/1/2023 11:08:40 AM
Viewed: 5/2/2023 8:37:35 AM
Signed: 5/2/2023 8:37:53 AM
Sent: 5/1/2023 11:08:54 AM
Resent: 5/1/2023 11:48:47 AM
Viewed: 5/1/2023 1:20:03 PM
Signed: 5/1/2023 1:21:01 PM
Sent: 5/1/2023 11:09:00 AM
Viewed: 5/1/2023 11:12:14 AM
Signed: 5/1/2023 11:17:31 AM
Sent: 5/1/2023 11:08:58 AM
Viewed: 5/1/2023 11:09:58 AM
Signed: 5/1/2023 11:10:41 AM
Sent: 5/1/2023 11:08:51 AM
Viewed: 5/5/2023 9:27:32 AM
Signed: 5/19/2023 9:51:08 AM
Sent: 5/1/2023 11:08:57 AM
Viewed: 5/1/2023 11:10:42 AM
Signed: 5/1/2023 11:15:46 AM

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Packet Pg. 171
Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Signer Events
Accepted: 5/1/2023 11:10:41 AM
ID: a500d164-6f76-4e97-a568-7cded4a68632
In Person Signer Events
Editor Delivery Events
Agent Delivery Events
Intermediary Delivery Events
Certified Delivery Events
Carbon Copy Events
Brad Eggleston
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Casey Leedom
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Chuck Muir
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Clif Chew
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Cynthia lwanaga
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Accepted: 5/1/2023 9:24:00 AM
ID: 66b4f104-4cd0-4412-aff0-d3ab5542acf7
Dave Staub
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Hailey Gordon
[email protected]
Security Level: Email, Account Authentication
(None)
Signature
Signature
Status
Status
Status
Status
Status

COPIED

COPIED
Timestamp
Timestamp
Timestamp
Timestamp
Timestamp
Timestamp
Timestamp
Sent: 5/1/2023 12:41:43 PM
Sent: 5/1/2023 11:08:46 AM
Sent: 5/1/2023 11:08:47 AM
Resent: 5/1/2023 12:41:42 PM
Sent: 5/1/2023 11:09:02 AM
Viewed: 5/1/2023 11:09:52 AM
Sent: 5/2/2023 7:49:20 AM
Viewed: 5/2/2023 8:25:53 AM
Sent: 5/1/2023 11:09:01 AM
Viewed: 5/22/2023 1:00:43 PM
Sent: 5/1/2023 11:08:59 AM

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Packet Pg. 172
Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Carbon Copy Events
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Hemali Mikhael
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
lvan Carmona-Torres
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Jennifer Cutter
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Kim Mancera
[email protected]
Municipal Services Assistant
City of Morgan Hill
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Laura Lo
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Michele Young
[email protected]
Security Level: Email, Account Authentication
(None), Login with SSO
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Myvan Khuu-Seeman
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Paula Borges
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Status

COPIED

COPIED
Timestamp
Sent: 5/1/2023 11:08:46 AM
Sent: 5/1/2023 11:08:58 AM
Viewed: 5/1/2023 11:12:26 AM
Sent: 5/1/2023 11:08:52 AM
Viewed: 5/1/2023 11:28:24 AM
Sent: 5/1/2023 11:08:56 AM
Sent: 5/1/2023 11:08:47 AM
Sent: 5/1/2023 11:08:57 AM
Viewed: 5/1/2023 3:57:39 PM
Sent: 5/1/2023 11:08:54 AM
Viewed: 5/22/2023 12:41:10 PM
Sent: 5/1/2023 11:08:55 AM

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Packet Pg. 173
Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Carbon Copy Events
Sarina Revillar
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Shikha Gupta
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Tania Katbi
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Tanya Carothers
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Ursula Syrova
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
WVSWMA
[email protected]
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
Witness Events
Notary Events
Envelope Summary Events
Envelope Sent
Envelope Updated
Envelope Updated
Envelope Updated
Envelope Updated
Envelope Updated
Envelope Updated
Envelope Updated
Envelope Updated
Certified Delivered
Signing Complete
Completed
Status

COPIED

COPIED
"Signature
Signature
' Status
Hashed/Encrypted
Security Checked
Security Checked
Security Checked
Security Checked
Security Checked
Security Checked
Security Checked
Security Checked
Security Checked
Security Checked
Security Checked
Timestamp
Sent: 5/1/2023 11:08:48 AM
Sent: 5/1/2023 11:09:02 AM
Viewed: 5/1/2023 11:10:34 AM
Sent: 5/1/2023 11:08:44 AM
Viewed: 5/22/2023 12:41:18 PM
Sent: 5/1/2023 11:08:45 AM
Sent: 5/1/2023 11:08:41 AM
Viewed: 5/22/2023 12:41:39 PM
Sent: 5/1/2023 11:08:55 AM
‘Timestamp
Timestamp _
‘Timestamps
5/1/2023 11:09:05 AM
5/1/2023 11:48:46 AM
5/1/2023 11:55:45 AM
5/1/2023 11:55:45 AM
5/1/2023 12:41:42 PM
5/1/2023 12:41:42 PM
5/2/2023 7:49:20 AM
5/3/2023 1:48:51 PM
5/3/2023 1:48:51 PM
5/1/2023 11:10:42 AM
5/1/2023 11:15:46 AM
6/22/2023 12:39:39 PM

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Payment Events Status Timestamps
Electronic Record and Signature Disclosure

10.b
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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Electronic Record and Signature Disclosure created on: 5/29/2020 4:52:24 PM Parties agreed to: Andy Faber, Ashwini Kantak, Caio Arellano, Christina Turner, Christopher D. Jenson, Dawn S Cameron, Derek Rampone, Diana Fazely, Donald La

ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, City of Morgan Hill (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system.

Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below.

Withdrawing your consent
If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below.

Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us.

All notices and disclosures will be sent to you electronically

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West Unless you tell us otherwise in accordance with the procedures described herein, we will pr ovide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

How to contact City of Morgan Hill:

You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows:

To contact us by email send messages to: [email protected] To advise City of Morgan Hill of your new email address To let us know of a change in your email address where we should send notices and disclosures electronically to you, you must send an email message to us at [email protected] and in the body of such request you must state: your previous email address, your new email address. We do not require any other information from you to change your email address.

If you created a DocuSign account, you may update it with your new email address through your account preferences.

To request paper copies from City of Morgan Hill
To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an email
to [email protected] and in the body of such request you must state your email address, full name, mailing address, and telephone number. We will bill you for any fees at that time, if any.

To withdraw your consent with City of Morgan Hill
To inform us that you no longer wish to receive future notices and disclosures in electronic format you may:

10.b
Packet Pg. 177
Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West i. decline to sign a document from within your signing session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may; ii. send us an email to [email protected] and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process..

Required hardware and software
The minimum system requirements for using the DocuSign system may change over time. The current system requirements are found here: https://support.docusign.com/guides/signer-guide- signing-system-requirements.

Acknowledging your access and consent to receive and sign documents electronically To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please confirm that you have read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (11) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format as described herein, then select the check-box next to ‘J agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

By selecting the check-box next to ‘I agree to use electronic records and signatures’, you confirm that:
e You can access and read this Electronic Record and Signature Disclosure; and e Youcan print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and
e Until or unless you notify City of Morgan Hill as described above, you consent to receive exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you by City of Morgan Hill during the course of your relationship with City of Morgan Hill.

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Attachment: Countywide Edible Food Recovery Program MOU (Approval of Authorization Agreement Between the City of Campbell and West

AUTHORIZATION AGREEMENT
THIS AUTHORIZATION AGREEMENT is made and entered into as of June __, 2024, by and between the West Valley Solid Waste Management Authority (hereinafter "Authority") of Santa Clara County, California, a Joint Powers Authority organized under the laws of the State of California, and the City of Campbell, (hereinafter referred to as the "City "). Authority and City shall be referred to collectively as the “Parties”.

This Agreement is entered into with reference to the following facts and circumstances:

WHEREAS, Authority was established by the City and the cities of Monte Sereno and Saratoga, and the Town of Los Gatos (collectively referred to as the “Member Agencies”), pursuant to the provisions of the Joint Exercise of Powers Act (Title 1, Division 7, Article1, Section 6500 et seq. of the California Government Code) to arrange for and manage the waste reduction, collection, reuse, disposal, recycling, and diversion of discarded materials originating in the participating municipalities; and WHEREAS, the Member Agencies are parties to the Memorandum of Agreement (“MOA”) entered into on June 14, 2013 for the Santa Clara County Recycling and Waste Reduction Technical Advisory Committee (“TAC”), which is a separate Committee created to assist the County of Santa Clara Recycling and Waste Reduction Commission (“RWRC or Commission”) that advances the interests of party jurisdictions by performing technical and policy review to inform parties and advise the Commission on solid waste management issues, and bring together varied expertise and viewpoints for planning and implementing the Commission approved annual workplan and budget; and

WHEREAS, California’s Short-Lived Climate Pollutant Reduction law (SB 1383, Lara, Chapter 395, Statutes of 2016) establishes methane reduction targets for California, including a target to increase recovery by 20 percent of currently disposed edible food for human consumption by January 1, 2025; and

WHEREAS, to meet the mandated statewide goal, SB 1383 requires each jurisdiction in California to establish and monitor a robust food recovery program, which will strengthen the relationships between commercial edible food generators and food recovery organizations within their communities, requiring certain food businesses to send the maximum amount of edible food they would otherwise dispose to food recovery organizations and/or services; and

WHEREAS, the Parties with other local agencies have previously agreed to jointly administer and fund the cost of a countywide edible Food Recovery Program (“the Program”) through the Memorandum of Understanding Among Local Public Agencies in Santa Clara County for Food Recovery Program Costs entered into and covering the time period of July 1, 2023 to June 30, 2024 (“Former MOU”) to satisfy their respective obligations under SB 1383 and the corresponding regulations; and

10.c
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Attachment: West Valley Solid Waste Management Authorization Agreement (Approval of Authorization Agreement Between the City of WHEREAS, due to the expiration of the Former MOU, the Parties and other local agencies are currently preparing a successor Memorandum of Understanding for the Program (“Successor MOU”); and

WHEREAS, based on the expertise of the staff of the Authority, the City desires to authorize the Authority and its staff to act on its behalf, serve as its representative, enter into the Successor MOU and fund City’s participation in the Program; and

WHEREAS, the Authority is willing to act on the City’s behalf, serve as the City‘s representative, enter into the Successor MOU and fund City’s participation in the Program.

NOW, THEREFORE, for good and valuable consideration, the adequacy and sufficiency of which is hereby acknowledged, the Parties agree as follows:

AGREEMENT

1. AUTHORIZATION. The City hereby authorizes the Authority to enter into the Successor MOU on its behalf, perform all obligations and requirements under the Successor MOU and serve as the City’s representative in the Program.

2. FINANCIAL OBLIGATIONS. The Authority shall pay, on behalf of the City, all fees owed by the City or its proportional share of the amounts owed by the Member Agencies due under the Successor MOU.

3. TERM OF AUTHORIZATION. This authorization shall be valid until such time the City revokes the authorization by providing written notice to the Authority.

In addition, in the event the Authority does not adequately allocate funds for participation in the Program, this Agreement shall terminate.

4. INDEMNIFICATION. Each Party (“Indemnitor”) agrees to defend, indemnify, and hold harmless the other Party, its respective officials, officers, employees, agents and volunteers (collectively “Indemnitees”) from any and all claims, demands, damages, liability, losses, expenses, attorneys fees or costs (collectively “Claims”), which Indemnitee may sustain or incur or which may be imposed upon it, but only in proportion to and to the extent such Claims result from, arise out of, or in any manner are caused by Indemnitor’s negligent or intentional acts or omissions relating to this Agreement.

5. NON-ASSIGNABILITY. This Agreement shall not be assigned by either Party without first obtaining the express written consent of the other Party.

6. ENTIRE AGREEMENT . Th e Parties agree that this Agreement constitutes the sole and only Agreement between them regarding the Authority’s authorization to act on City’s behalf in the Program and correctly sets forth their obligations and duties with respect to each other.

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Attachment: West Valley Solid Waste Management Authorization Agreement (Approval of Authorization Agreement Between the City of

7. AMENDMENT. This Agreement may be amended only by written consent of the Parties.

8. GOVERNING LAW. This Agreement shall be construed in accordance with and governed by the laws of the State of California.

9. SEVERABILITY. The une nforceability, invalidity , or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid, or illegal.

IN WITNESS HEREOF, the parties hereto are authorized and have executed this Agreement on the day and year first written above.

AUTHORITY:

West Valley Solid Waste Management Authority

__________________ By:

Date Name: Rob Hilton
Title: Executive Director

CITY/TOWN:

City of Campbell

By:

Date Name: _Brian Loventhal_
Title: City Manager

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Attachment: West Valley Solid Waste Management Authorization Agreement (Approval of Authorization Agreement Between the City of City
Council
Report
TITLE: Mobile Home Rent Stabilization Tri -Partite Agreement (Resolution/Roll Call Vote)

RECOMMENDED ACTION
That the City Council adopt a resolution approving a Tri-Partite Mobile Home Rent Stabilization Agreement and authorizing the City Manager to execute the agreement between Timber Cove Mobilehome Community Joint Venture dba Timber Cove Mobilehome Community, the Timber Cove Homeowners Association, and the City of Campbell.

BACKGROUND
Timber Cove is a 137-space mobile home park located at 870 Camden Avenue in Campbell. The City has participated in a Mobile Home Rent Stabilization Tri- Partite Agreement (“Agreement’) between the mobile home homeowners, the property management company/landowner, and the City over the past 30 years. The original Agreement was established in 1993 and has been renewed every five (5) years thereafter. The original Agreement was a result of a mediation process hosted by the City of Campbell and sets forth limitations on annual rent increases (i.e., space rent).

Every five (5) years the Agreement has been updated following negotiations between the parties, with informal facilitation of those negotiations by City staff as needed. The City’s participation as a signatory in the Agreement is not a requirement that has been established in any policy documents, such as the Housing Element, but rather has been an ongoing practice since 1993.

The City’s participation in the tri-partite agreement is consistent with the 2023-2031 Housing Element, specifically Program H-2b: Preservation of Mobile Home Park Units:

Develop General Plan policy to preserve mobile home parks, outright, and the prohibit their conversion.

DISCUSSION
Since 1993, there have been some rental protections established throughout the state with the passage of the California Tenant Protection Act of 2019 (AB1482) which limits the amount a landlord can increase rent and requires a “just cause” if a landlord evicts a tenant. However, the protections in AB 1482 exempt certain Item: 11
Category: CONSENT CALENDAR
Meeting Date: June 4, 2024
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Mobile Home Rent Stabilization Tri-Partite Agreement Page 2 of 3 types of properties, including mobile homes. The Tri-Partite Agreement provides limitations on annual rent increases.

The most recent Tri-Partite Agreement expired on January 31, 2024. The homeowners and landowners have been in discussion on the terms of a new agreement since early 2023 but needed additional time to work on the terms of the Agreement. The two parties have concluded their negotiations and agreed upon the attached revised Agreement, which would expire on January 31, 2034. The changes between the 2019 Agreement and the proposed Agreement are outlined in the attached spreadsheet (Attachment B), and include the following:
• The annual base rent increase, which is the greater of three percent or 75% of the annual percentage increase in the Consumer Price Index, has remained the same.
• The term of the agreement has changed from five years to a 10-year term.
• Other changes include a different format, new and revised definitions, new tiers for rent increases upon resale, clarification regarding capital improvements, and clarification of the terms related to emergencies and disaster related costs.

The City Attorney has reviewed the Agreement and found it to be satisfactory.

FISCAL IMPACT
There are no direct fiscal impacts to the City except for staff time every five to ten years associated with renewing the agreement.

Prepared by:

Eloiza Murillo-Garcia, Housing Program
Manager
Reviewed by:

Rob Eastwood, Community
Development Director
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Mobile Home Rent Stabilization Tri-Partite Agreement Page 3 of 3 Approved by:

Brian Loventhal, City Manager
Attachment:
a. Resolution
b. Timber Cove - Agreement Changes Summary
c. Timber Cove Rent Stabilization Agreement
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RESOLUTION NO._______

BEING A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF CAMPBELL APPROVING AND AUTHORIZING THE

CITY MANAGER TO EXECUTE A TRI -PARTITE RENT

STABILIZATION AGREEMENT WITH TIMBER COVE
MOBILE HOMEMOWNER’S ASSOCIATION, TIMBER COVE

JOINT VENTURE DBA TIMBER COVE MOBILEHOME
COMMUNITY, AND THE CITY OF CAMPBELL.

WHEREAS, the City of Campbell since 1993 has provided Timber Cove Mobile Homeowner’s Association members and parks owners , Timber Cover Joint Venture dba Timber Cove Mobilehome Community , with conciliation and mediation for proposed rent increases; and
WHEREAS, the mobile homeowners, park management, and the City of Campbell have signed a five -year Tri-Partite Rent Stabilization Agreement every five years for the last 30 years; and
WHEREAS, the current Tri-Partite Agreement expired January 31, 2024; and WHEREAS, the mobile homeowners and park managers have agreed on a ten year term and desire to sign a new ten-year agreement.

WHEREAS, the City’s participation in the Tri -partite agreement does not establish local rent control.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Campbell, California, that the C ouncil does approve a new Tri -Partite Rent Stabilization Agreement with Timber Cove Mobile Homeowner’s Association and Timber Cover Joint Venture dba Timber Cove Mobile Home Community, and authorizes the City Manager to execute the attached agreement.

PASSED AND ADOPTED this ___ day of __, 2024, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSTAINED: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

APPROVED:________________________
Susan M. Landry, Mayor
ATTEST:________________________
Andrea Sanders, City Clerk

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Attachment: Resolution (Mobile Home Rent Stabilization Tri-Partite Agreement) Timber Cove Mobilehome Community Rent Stabilization Agreement Comparison 2019 vs. 2024 May 21, 2024 Section 2019 Agreement 2024 Agreement
Definitions Total of 16 terms defined. Expanded "Definitions" section. Total of 17 terms defined.

Term 5 Years 10 Years
Additional Rent Rent increase pass-throughs based on Government mandated costs or Emergency or Disaster related costs.

Ten year amortization period.

Rent increase pass-throughs based on Government mandated costs or Emergency or Disaster related costs. Amortization period changed now on schedule based on cost. Expanded clarification of costs associated with both types of pass-throughs.
(G) If such fee or increase is $25 or less per Lot, it may be passed through o
nce annually in its entirety, and will be separately itemized on Homeowner's Monthly Rent Statement. Otherwise, for amounts greater than $25 per Lot, Homeowner's pro-rata share will be calculated on the basis of the actual number of mobilehome Lots in the Community and divided by twelve (12) and separately stated on Homeowner’s Monthly Rent Statement. (H)
S
uch Additional Rent increases may be implemented upon ninety (90) days written notice at any time during the term of this Agreement (not just the anniversary date for Base Rent increases per Section 4). (I) A
ny increase in Additional Rent due to taxes, fees, assessments, bonds, and bond-related costs or other government or quasi-government mandated costs not covered by Subsection (G) above shall terminate when such fees, assessments, bonds, bond-related costs or other government mandated costs are no longer assessed against the property upon which the Community is located.

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Attachment: Timber Cove - Agreement Changes Summary (Mobile Home Rent Stabilization Tri-Partite Timber Cove Mobilehome Community Rent Stabilization Agreement Comparison 2019 vs. 2024 May 21, 2024 Section 2019 Agreement 2024 Agreement
Rent Increases
on Resale
In the case of an on-site resale during the term of this Agreement of a mobilehome located in the Community as
of the beginning date of this Agreement, Management
may increase the Base Rent to the Purchaser in the
following amounts:
• If a Homeowner's Base Rent at the time of sale is
$680.00 to $780.00, the new purchaser's Base Rent shall be increased by twenty five percent (25%)
• If a Homeowner's Base rent at the time of sale is
$780.01 to $980.00, the Base Rent shall be increased by fifteen percent (15%).
• If a Homeowner's Base rent at the time of sale is
$980.01 and over, the Base Rent shall be increased by
ten percent (10%).

The Base Rent ranges above shall increase annually on
the Future Base Rent Increase Dates provided for in
Section 4 of this Lease by the greater of three percent (3%) or seventy-five percent (75%) of the annual
percentage increase in the Price Index.

In the case of an on-site resale during the term of this Agreement of a mobilehome located in the Community as of the beginning date of this Agreement, Management may increase the Base Rent to the Purchaser in the following amounts:
• If a Homeowner's Base Rent at the time of sale is $798.01 to $1,150.09, the new purchaser's Base Rent shall be increased by twenty five percent (15%) • If a Homeowner's Base rent at the time of sale is $1,150.10 and over, the Base Rent shall be increased by ten percent (10%).

The Base Rent ranges above shall increase annually on the Future Base Rent Increase Dates provided for in Section 4 of this Lease by the greater of three percent (3%) or seventy-five percent (75%) of the annual percentage increase in the Price Index.

Property Tax
Pass-through
Additional Rent shall not be increased due to an increase in property taxes which is solely triggered by, or based upon a "voluntary internal structure change of
Ownership." In this context "voluntary internal structure change of Ownership" shall mean the voluntary transfer
of a joint venture or partnership interest among the
current owners that triggers a reassessment of the
property taxes for the property upon which the
Community is located.

Owner shall not be entitled to any Property Tax Pass Through due to an increase in Property Taxes which is triggered solely by voluntary internal reorganization of the Owner that is considered a"change of ownership" or a transfer of joint venture or partnership interest among the current persons holding an ownership interest that triggers a reassessment of the Community. A court-ordered "reorganization" or "change of ownership" is not voluntary.

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Attachment: Timber Cove - Agreement Changes Summary (Mobile Home Rent Stabilization Tri-Partite Timber Cove Mobilehome Community Rent Stabilization Agreement Comparison 2019 vs. 2024 May 21, 2024 Section 2019 Agreement 2024 Agreement
Cap.

Improvements
(A) Any costs of any government or quasi-government
required capital improvements, and/or studies, and/or
related activities required as a result of the studies, occurring or beginning during the term of this Agreement ("Mandated Costs"), in excess of seventy-five thousand dollars ($75,000.00) per project or event, may be passe d
t
hrough to the Homeowner as Additional Rent on a pro-
rated basis, provided such costs will: 1) be amortized as provided for in the Schedule of Amortization below, 2)
include interest at the Prime Interest Rate adjusted
annually on each anniversary of the completion date of
the work related to the Mandated Costs, 3) be separately stated on the Monthly Rent bills, 4) not be deemed a part of base rent for purposes of calculating the annual base rent increases pursuant to Section 4 above, and 5) be
eliminated once complete reimbursement has been
achieved. Homeowner's pro-rata monthly share will be
calculated on the basis of the actual number of
mobilehome Lots in the Community divided by the
number of months in the Schedule of Amortization
pertaining to the Mandated Cost. Mandated Costs in
connection with a single government or quasi-
government mandated project or event may be
generated from more than one source and shall b
e
c
ombined together to arrive at the total amount of
Mandated Costs for such project or event. Mandated
Costs may be passed through to the Homeowner as
provided above commencing at any time during the term
of this Agreement upon ninety (90) days written notice
(A) Any costs of any government or quasi-government required capital improvements, and/or studies, and/or related activities required as a result of the studies, occurring or beginning during the term of this Agreement ("Mandated Costs"), in excess of eighty-six thousand eight hundred thirty three dollars ($86,833), adjusted annually during the term of this Agreement by the percentage change in the Price Index beginning on the Effective Date, per project or event, may be passed through to the Homeowner as Additional Rent on a pro-rated basis, provided such costs will: 1) be amortized as provided for in the Schedule of Amortization below, 2) include interest at the Prime Interest Rate adjusted annually on each anniversary of the completion date of the work related to the Mandated Costs, 3) be separately stated on the Monthly Rent bills, 4) not be deemed a part of base rent for purposes of calculating the annual base rent increases pursuant to Section 4 above, and 5) be eliminated once complete reimbursement has been achieved. Homeowner's pro-rata monthly share will be calculated on the basis of the actual number of mobilehome Lots in the Community divided by the number of months in the Schedule of Amortization pertaining to the Mandated Cost. Mandated Costs in connection with a single government or quasi-government mandated project or event may be generated from more than one source and shall be combine d
t
ogether to arrive at the total amount of Mandated Costs for such project or event. Mandated Costs may be passed through to the Homeowner as provided above commencing at any time during the term of this Agreement upon ninety (90)
d
ays written notice (not just on the anniversary date for Base Rent increases).

Schedule of Amortization:
•
M
andated Costs up to $289,442.00, shall be amortized for a term of 10 years; • Mandated Costs between $289,442.01 and $1,157, 766.99, shall be amortized for a term of 15 years;
•
M
andated Costs above $1,157,767.00 shall be amortized for a term of 20

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Attachment: Timber Cove - Agreement Changes Summary (Mobile Home Rent Stabilization Tri-Partite Timber Cove Mobilehome Community Rent Stabilization Agreement Comparison 2019 vs. 2024 May 21, 2024 Section 2019 Agreement 2024 Agreement
Emergency /
Disaster
Emergency or Disaster Related Costs: Any costs to
repair damage to the Community arising from any
emergency or disaster related occurrence or event, as
defined in Section 2, Paragraph O, occurring or
beginning during the term of this Agreement (“Emergency Costs”), in excess of seventy-five thousand dollars
($75,000.00), per project or event, may be passed
through to the Homeowner as Additional Rent on a pro-
rated basis, provided such costs shall: 1) be amortized as provided for in the Schedule of Amortization below, 2) include interest at the Prime Interest Rate adjusted
annually on each anniversary of the completion date of
the work related to the Emergency Costs, 3) be
separately stated on the Monthly Rent bills, 4) not be
deemed a part of base rent for purpose of calculating the annual base rent increases pursuant to Section 4 above, and 5) be eliminated once complete reimbursement has
been achieved. Homeowner's pro-rata monthly share will be calculated on the basis of the actual number of
mobilehome Lots in the Community divided by the
number of months in the Schedule of Amortization
pertaining to the Emergency Cost. Emergency Costs in
connection with a single emergency or disaster related
occurrence or event as defined in Section 2, Paragraph
O may be generated from more than one source and
shall be combined together to arrive at the total amount of Emergency Costs for such emergency, disaster or
event. Said Emergency Costs may be passed through to
the Homeowner as provided above commencing at any

Emergency or Disaster Related Costs: Any costs to repair damage to the Community arising from any emergency or disaster related occurrence or event, as defined in Section 2, Paragraph O, occurring or beginning during the term of this Agreement (“Emergency Costs”), in excess of eighty-six thousand eight hundred thirty three dollars ($86,833.00), adjusted annually during the term of this Agreement by the percentage change in the Price Index beginning on the Effective Date, per project or event, may be passed through to the Homeowner as Additional Rent on a pro-rated basis, provided such costs shall: 1) be amortized as provided for in the Schedule of Amortization below, 2) include interest at the Prime Interest Rate adjusted annually on each anniversary of the completion date of the work related to the Emergency Costs, 3) be separately stated on the Monthly Rent bills, 4) not be deemed a part of base rent for purpose of calculating the annual base rent increases pursuant to Section 4 above, and 5) be eliminated once complete reimbursement has been achieved.

Homeowner's pro-rata monthly share will be calculated on the basis of the actual number of mobilehome Lots in the Community divided by the number of months in the Schedule of Amortization pertaining to the Emergency Cost.

Emergency Costs in connection with a single emergency or disaster related occurrence or event as defined in Section 2, Paragraph O may be generated from more than one source and shall be combined together to arrive at the total amount of Emergency Costs for such emergency, disaster or event. Said Emergency Costs may be passed through to the Homeowner as provided above commencing at any time during the term of this Agreement upon ninety (90) days written notice (not just on the anniversary date for Base Rent increases). Emergency Costs will be calculated net of any insurance reimbursement.

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Attachment: Timber Cove - Agreement Changes Summary (Mobile Home Rent Stabilization Tri-Partite Timber Cove Mobilehome Community Rent Stabilization Agreement Comparison 2019 vs. 2024 May 21, 2024 Section 2019 Agreement 2024 Agreement
Emergency /
Disaster
Insurance P.T.

Management shall maintain, throughout the term of this
Agreement, the types and amounts of property insurance
in effect on February 1, 2019.

Owner shall not be entitled to pass through to the Homeowner any disaster related event costs unless the Owner has continued to maintain throughout the term of this Agreement the types and amounts of property insurance in effect on the Effective Date, adjusted annually by the percentage increase in the Price Index. If those types and amounts of property are not commercially available throughout the term of this Agreement, at the above described price, Owner reserves the right, in its sole and absolute discretion, to purchase whatever property insurance it deems reasonable for the Community. Owner shall disclose Owner's property insurance coverage to Homeowner if Homeowner so requests, provided however, no Homeowner shall be entitled to such disclosure more than once in any twelve (12) month period.

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Attachment: Timber Cove - Agreement Changes Summary (Mobile Home Rent Stabilization Tri-Partite

TIMBER COVE MOBILEHOME COMMUNITY

RENT STABILIZATION AGREEMENT
Agreement dated this d a y of February 1, 2024, (“Effective Date”) by and between TIMBER COVE MOBILEHOME COMMUNITY J O I N T VENTURE doing business as TIMBER COVE MOBILEHOME COMMUNITY, hereinafter referred to as “Management”, “Timber Cove Mobilehome Community” or “Community”, the CITY OF CAMPBELL, a Municipal Corporation, hereinafter referred to as “City”, and the TIMBER COVE HOMEOWNERS ASSOCIATION, on behalf of all mobilehome owners at Timber Cove Mobilehome Community, hereinafter referred to as “Homeowners”, and collectively referred to as “Parties”.

1. PURPOSE: The purpose of this Agreement is to resolve the issue of increases in rent and certain other charges at Timber Cove Mobilehome Community located at 870 Camden Avenue in the City of C
ampbell in the years set forth herein.

This is a tripartite Agreement between Management, the Homeowners of Timber Cove Mobilehome Community through their designated representative, the Timber Cove Homeowners Association, and the City. This Agreement is the result of negotiations between the Homeowners and Management as defined below, with the assistance of the City.

2. DEFINITIONS:

A. “Management”: Timber Cove Mobilehome Community Joint Venture doing business as Timber Cove Mobilehome Community or its designated representative(s).

B. “Community”: Community is the Timber Cove Mobilehome Community located at 870 Camden Avenue, Campbell, Santa Clara County, California 95008.

C. “Homeowner”: The person(s) who owns a mobilehome and holds a tenancy for a mobilehome Lot, as defined below, at Timber Cove Mobilehome Community under a fully executed Rental Agreement with the Community .

D. “Timber Cove Mobilehome Homeowners Association ”: The Timber Cove Mobilehome Homeowners Association, (“Association”) is a nonprofit organiza tion whose
sole purpose is to preserve and improve the quality of life for homeowners members are Homeowners of Timber Cove Mobilehome Community. The powers of the Association are exercised by an elected Board of Directors, which supervises the a
ctivities and affairs of the Association .

E. “City” The City of Campbell.

F. “Bureau”: The Federal Bureau of Labor Statistics or any successor agency that issues or will issue the indices or data referred to in Subsection G, below.

G. “Price Index ”: Consumer Price Index (“CPI”) for all Urban Consumers, San Francisco/Oakland/Hayward, published by the Bureau, or any other measur e sub
sequently employed by the Bureau in lieu of such price index, that measures the co
st of living locally. The annual percentage increase in the Price Index shall be computed from August to August of each year during the term of this Agreement. In the

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 2 event the foregoing cost of living index is discontinued or revised, another governmental index subsequently employed by the Bureau of Labor Statistics in lieu of such price index that measures the cost of living locally shall be selected by Management and used to obtain substantially the same result as if the foregoing index had not been discontinued or revised. Civil Code Section 798.30, a provision of the California Mobilehome Residency Law, provides that Management shall give a Homeowner at least ninety (90) days written notice of any increase in his or her rent. In the event that during the term of this Agreement that provision of the Civil Code, or any other relevant provision should be amended to require a longer period of written notice of Base Rent (defined below) increase to Homeowner, then the appropriate twelve (12) month calculation period will be used so that calculation of the annual Base Rent increases pursuant to Section 4 can be made.

H.
“Base Rent ”: Base Rent is the monthly rent for the mobilehome Lot (as defined below) in U.S. Dollars payable by the Homeowner, plus any increase in Base Rent as provided for in this Agreement. Base Rent excludes all other separately itemized charges such as utilities .

I. “Additional Rent”: Additional Rent is the monthly amount demanded or received in U.S. Dollars in connection with separately itemized charges provided for in this Agreement and the Homeowner’s Rental Agreement, including but not limited to increases pursuant to Section 4, Annual Base Rent Increases, and Section 5, Additional Base Rent Increases .

J. “Monthly Rent”: Monthly Rent is the sum of Base Rent and Additional Rent .

K. “Lot”: Lot means the real property that is the mobilehome Lot which the Tenant rents from the Landlord. It includes the entire area from curb, including side curb, to rear Lot line and side Lot lines; including the driveway, yards, fencing, patios, trees, landscaping and the area upon which Tenant’s mobilehome is located .

L. “Mobilehome”: Mobilehome means the mobilehome or manufactured home in which the Homeowner resides at Timber Cove Mobilehome Community, and as defined in Civil Code Section 798.3, herein referred to as mobilehome.

M. “Mobilehome Residency Law ”: As used herein, the term “Mobilehome Residency Law” refers to those provisions of the California Civil Code beginning at Civil Code Section 798, and any future changes to the Mobilehome Residency Law. The Mobilehome Residency Law may also be referred to as the “MRL.” N. “Government Required Capital Improvements ”: An addition or improvement to the Timber Cove Mobilehome Community, or assessment against the Community, including a substantial rehabilitation or replacement of an existing capital improvement in the Community required or mandated by any governmental body or agency, including but not limited to, the City of Campbell, the County of Santa Clara, the State of California, or the United States of America.

O. “Emergency or Disaster Related Occurrence or Event ”: A sudden event resulting from earthquake, fire, flood, or other natural occurrence, or a major malfunction of any of the Timber Cove Mobilehome Community’s underground utilities or sewer systems, over which Management has no reasonabl e control, and which was not caused by

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 3 Management’s willful misconduct or gross negligence. This definition is intended to be illustrative and not exclusive .

P. “Prime Interest Rate ”: shall mean two hundred (200) basis points above the “Prime Rate” charged by Bank of America, NT & SA to its most credit worthy borrowers, if the “Prime Rate” charged by Bank of America NT & SA should cease to be available through any reasonable means, then “Prime Interest Rate” shall include the “Prime Rate” of an alternative major financial institution selected by Management .

Q. “Property Tax ”: includes all general and special real estate taxes and personal property taxes. Property taxes also include any tax or excise on rents or any other tax, however described, which is levied or assessed against the Community as a direct substitution in whole or in part, for any real property taxes .

3. TERM: The term of this Agreement shall commence on February 1, 2024 and terminate at midnight on January 31, 2034.

4. ANNUAL BASE RENT INCREASES: Base rent on all mobilehome lots shall be increased by the greater of three percent (3%) or seventy-five percent (75%) of the annual percentage increase in the Price Index on the following dates:
-- February 1, 2025
-- February 1, 2026
-- February 1, 2027
-- February 1, 2028
-- February 1, 2029
-- February 1, 2030
-- February 1, 2031
-- February 1, 2032
-- February 1, 2033

5. ADDITIONAL BASE RENT INCREASES: At any time from the commencement date of this Agreement, in addition to the annual Base Rent increase as set forth in Section 4 above, Additional Rent and/or other charges may be increased or separately assessed in compliance with the conditions set forth in the Mobilehome Residency Law, Civil Code Sections 798.30 through 798.49, as set forth below. Such pass-throughs may be implemented upon ninety (90) days written notice at any time during the term of this Lease (not just the anniversary date of the Base Rent increases as set forth in Section 4).

Government or Quasi-Government Mandated Costs: Additional Rent increases resulting from Government or Quasi-Government mandated costs, as more fully described below, once assessed, will become part of the Monthly Rent. For all purposes in this paragraph A, the starting property tax base amount shall be the 2023/2024 property tax assessment as evidenced by the then-current tax roll in effect as of February 1, 2024.

i. Property Tax Increases: The Owner may pass through to the Homeowner the amount by which Property Taxes increase in any given fiscal tax year by more than two percent (2%) over and above the prior fiscal year Property Taxes, subject to the following:
• A Property Tax Pass Through may be imposed in the amount of any Property Tax increase that exceeds two percent (2%) in a given fiscal tax year that is caused by

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 4 (a) an involuntary Property Tax reassessment including but not limited to a death of a person holding an ownership interest within the Timber Cove Mobilehome Community Joint Venture, or (b) any new general or special real estate property taxes imposed by the County of Santa Clara or the State of California. With respect to an “involuntary change of ownership” reassessment in (a), Management shall use good faith best efforts to avoid an involuntary reassessment. • If the Community is sold to a third party pursuant to an arms-length transaction, the Owner may pass through to the Homeowner the increase in Property Taxes resulting from a reassessment of the Community upon such sale to the extent that such increase exceeds two percent (2%) in a given fiscal tax year; provided, however, the total amount of any Property Tax Pass Through resulting from a sale shall be phased in over five (5) years with equal increases each year until the full amount of the Property Tax Pass-Through has been implemented and thereafter the full amount of the property tax pass-through shall be assessed in perpetuity. • Owner shall not be entitled to any Property Tax Pass Through due to an increase in Property Taxes which is triggered solely by a voluntary internal reorganization of the Owner that is considered a “change of ownership” or a transfer of a joint venture or partnership interest among the current persons holding an ownership interest that triggers a reassessment of the Community. A court-ordered “reorganization” or “change of ownership” is not voluntary. • The amount of the Property Tax Pass Through paid by the Homeowner shall be the total annual amount of the Property Tax Pass Through allowed divided by twelve (12) and then divided by the total number of spaces in the in the Community.
ii. Any other new fees, assessments, bonds, bond-related costs, taxes or other government or quasi-government mandated costs, to be paid by Management, may be passed through to the Homeowner on a pro-rated basis as Additional Rent.

Any increases in existing government or quasi-government mandated costs in excess of the annual percentage increase, as defined in Section 4, may be similarly passed through as Additional Rent. Any increases in existing government or quasi- government mandated costs below the annual percentage increase may not be passed through as Additional Rent.
iii. If such fee or increase is assessed, such fee or increase will be divided by the actual number of Lots in the Community and the number of months it is assessed and will be separately listed on Homeowner’s Monthly Rent Statement.
iv. If such fee or increase is $25 or less per Lot, it may be passed through once annually in its entirety, and will be separately itemized on Homeowner’s Monthly Rent Statement. Otherwise, for amounts greater than $25 per Lot, Homeowner’s pro-rata share will be calculated on the basis of the actual number of mobilehome Lots in the Community and divided by twelve (12) and separately stated on Homeowner’s Monthly Rent Statement.

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 5 v. Such Additional Rent increases may be implemented upon ninety (90) days written notice at any time during the term of this Agreement (not just the anniversary date for Base Rent increases).
vi. Any increase in Additional Rent due to taxes, fees, assessments, bonds, and bond-related costs or other government or quasi-government mandated costs not covered above shall terminate when such fees, assessments, bonds, bond- related costs or other government mandated costs are no longer assessed against the property upon which the Community is located.

B. The following government or quasi-government mandated costs, once assessed, will be due and payable by Homeowner as Additional Rent and separately listed on each Homeowner’s Monthly Rent bill, and will be eliminated once reimbursement to Management has been paid in full.
i. Any costs of any government or quasi-government required capital improvements, and/or studies, and/or related activities required as a result of the studies, occurring or beginning during the term of this Agreement (“Mandated Costs”), in excess of eighty-six thousand eight hundred thirty three dollars ($86,833), adjusted annually during the term of this Agreement by th e percentage change in the Price Index beginning on the Effective Date, per project or event, may be passed through to the Homeowner as Additional Rent on a pro- rated basis, provided such costs will: 1) be amortized as provided for in the Schedule of Amortization below, 2) include interest at the Prime Interest Rate adjusted annually on each anniversary of the completion date of the work related to the Mandated Costs,
3) be separately stated on the Monthly Rent bills, 4) not be deemed a part of Base Rent for purposes of calculating the annual Base Rent increases pursuant to Section 4 above, and 5) be eliminated once complete reimbursement has been achieved. Homeowner’s pro-rata monthly share will be calculated on the basis of the actual number of mobilehome Lots in the Community divided by the number of months in the Schedule of Amortization pertaining to the Mandated Cost. Mandated Costs in connection with a single government or quasi- government mandated project or event may be generated from more than one source and shall be combined together to arrive at the total amount of Mandated Costs for such project or event. Mandated Costs may be passed through to the Homeowner as provided above commencing at any time during the term of this Agreement upon ninety (90) days written notice (not just on the anniversary date for Base Rent increases).

Schedule of Amortization:
• Mandated Costs up to $289,442.00, shall be amortized for a term of 10 years;
• Mandated Costs between $289,442.01.00 and $1,157,766.99, shall be amortized for a term of 15 years;
• Mandated Costs above $1,157,767.00 shall be amortized for a term of 20 years.

The Schedule of Amortization ranges above shall be adjusted annually by the percentage increase in the Price Index during the term of this Agreement beginning on the Effective Date.

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 6 ii. Homeowner may be charged Additional Rent to reimburse Management for any fees, assessments, or other charges permitted to be passed through to Homeowner under state law in rent-controlled areas. These costs will be separately listed on each Homeowner’s Monthly Rent bill. Such rent increase may be implemented upon ninety (90) days prior written notice at any time during the term of this Agreement (not just on the anniversary date for Base Rent increases).

C. Emergency or Disaster Related Costs: Any costs to repair damage to the Community arising from any emergency or disaster related occurrence or event, as defined in Section 2, occurring or beginning during the term of this Agreement (“Emergency Costs”), in excess of eighty-six thousand eight hundred thirty three dollars ($86,833),

adjusted annually during the term of this Agreement by the percentage change in the Price Index beginning on the Effective Date, per project or event, may be passed through to the Homeowner as Additional Rent on a pro-rated basis, provided such costs shall: 1) be amortized as provided for in the Schedule of Amortization below, 2) include interest at the Prime Interest Rate adjusted annually on each anniversary of the completion date of the work related to the Emergency Costs, 3) be separately stated on the Monthly Rent bills, 4) not be deemed a part of base rent for purpose of calculating the annual base rent increases pursuant to Section 4 above, and 5) be eliminated once complete reimbursement has been achieved. Homeow ner’s pro-rata monthly share will be calculated on the basis of the actual number of mobilehome Lots in the Community divided by the number of months in the Schedule of Amortization pertaining to the Emergency Cost. Emergency Costs in connect ion with a single emergency or disaster related occurrence or event as defined in Section 2, may be generated from more than one source and shall be combined together to arrive at the total amount of Emergency Costs for such emergency, disaster or event. Said Emergency Costs may be passed through to the Homeowner as provided above commencing at any time during the term of this Agreement upon ninety
(90) days written notice (not just on the anniversary date for Base Rent increases). Emergency Costs will be calculated net of any insurance reimbursement.

Owner shall not be entitled to pass through to the Homeowner any disaster related event costs unless the Owner has continued to maintain throughout the term of this Agreement the types and amounts of property insurance in effect on the Effective Date if those types and amounts of property insurance are commercially available throughout the term of this Agreement, at the same price in effect on the Effective Date, adjusted annually by the percentage increase in the Price Index. If those types and amounts of property insurance are not commercially available throughout the term of the this Agreement, at the above described price, Owner reserves the right, in its sole and absolute discretion, to purchase whatever property insurance it deems reasonable for the Community. Owner shall disclose Owner’s property insurance coverage to Homeowner if Homeowner so requests, provided however, no Homeowner shall be entitled to such disclosure more than once in any twelve (12) month period.

Schedule of Amortization:
• Emergency Costs up to $289,442.00, shall be amortized for a term of 10 years; • Emergency Costs between $289,442.01 and $1,157,766.99, shall be amortized for a term of 15 years;
• Emergency Costs above $1,157,767.00 shall be amortized for a term of 20 years.

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 7 The Schedule of Amortization ranges above shall be adjusted annually by the percentage increase in the Price Index during the term of this Agreement beginning on the Effective Date.

D. If Homeowners’ Additional Rent is increase d pursuant to, 1) Government or Quasi- Government Mandated Costs, or 2) Emergenc y or Disaster Related Costs, as defined in Section 5, Management’s calculations with respect to said Additional Rent increases, as well as pertinent supporti ng documentation, will be available for Homeowners’ review at the Community office, as of the date of notice of the increase to the Tenant for a period of 90 days.

6. CAPITAL IMPROVEMENT PASS-THROUGHS: Throughout the term of this Agreement, capital improvements which are not Government or Quasi-Government Mandated Costs or Emergency or Disaster Related Costs set forth in Section 5, shall not be passed through as Additional Rent to the Homeowners.

7. UTILITIES: Management retains the right to sub-meter or to separately charge for any utility service in accordance with California law. Should Management decide to separate out such utility charges, Management agrees to meet with representatives of the Timber Cove Residents Association to explain the rationale for the separation of the utility charges.

8. RENT INCREASES ON RESALE:

A. In the case of an on-site resale during the term of this Agreement of a mobilehome located in the Community as of the beginning date of this Agreement, Management may increase the Base Rent to the Purchaser in the following amounts:
• If a Homeowner’s Base rent at the time of sale is $798.01 to $1,150.09, the Base Rent shall be increased by fifteen percent (15%).
• If a Homeowner’s Base rent at the time of sale is $1,150.10 and over, the Base Rent shall be increased by ten percent (10%).

The Base Rent ranges above shall increase annually on the Base Rent Increase Dates provided for in Section 4 of this Lease by the greater of three percent (3%) or seventy- five percent (75%) of the annual percentage increase in the Price Index.

B. The limits stated above shall not apply, and there is not limit on the amount Management may increase Base Rent, in the following cases:
• The owner of the home has voluntarily removed it or caused it to be removed from the Lot and has termin ated his or her tenancy in the Community;
• Management has terminated the Homeowner’s tenancy pursuant to one or more of the stated reasons contained in Civil Code Section 798.56; • The home being sold has been foreclosed upon by a financial institution or private lender; and/or
• There is a sale of an on-site mobilehome to a mobilehome dealer or other

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 8 individual(s) who does not intend to reside in the on-site mobilehome.

C. In the event Homeowner’s mobilehome passes by will, devise, bequest, or operation of Law to Homeowner(s)’ heirs or successors, there shall be no rent increase at the time of such change of ownership of Homeowner’s home, other than the Annual Base Rent Increases set forth in Section 4 .

9. HOMEOWNER REPLACEMENT OF MOBILEHOME: If Homeowner decides to replace the existing mobilehome with a new mobilehome and continues to reside in the mobilehome after replacement, the Base Rent will be increased based on the following terms:

A. The Base Rent to the Homeowner upon replacement of the mobilehome within twelve (12) months after the signing of an initial Rental Agreement with Management will be set to current market rate as determined by Management.

Any Homeowner who replaces his/her mobilehome beyond twelve (12) months after signing an initial Rental Agreement with Management shall not be assessed an increase in Base Rent due to the replacement of the mobilehome but will be responsible for costs borne by Management as those costs relate to the placement of the new mobilehome.

Homeowner will be billed separately for thos e costs, and they will not appear on the Monthly Rent statement. The annual Base Rent increase per Section 4 will also be charged on the Base Rent anniversary date.

C. With respect to Subsection B above, in the event Homeowner elects to replace an existing mobilehome, at Homeowner’s request Management shall provide a good faith written preliminary estimate of Management’s anticipated costs in connection with the preparation of the Lot for a new mobilehome (“Lot Preparation Costs”). Management reserves the right to use its employees, agents, contractors, and/or vendors in connection with the Lot preparation. Lot Preparation Costs may include but are not limited to, utility pedestal replacement, utility pad replaceme nt, repair or replacement of driveway, and/or removal of trees and shrubs. Upon completion of the Lot preparation, Management shall provide Homeowner with a final invoice reflecting the Lot Preparation Costs incurred by Management. Upon receiving the final invoice, Homeowner shall reimburse Management for the entirety of the Lot Preparation Costs on the earlier of:
1) ten (10) business da ys from Homeowner’s receipt of said invoice, or 2) three (3) days prior to the installation of the new mobilehome. Management reserves the right to deny the installation of a new mobilehome until and unless all Lot Preparation Costs are reimbursed by Homeowner. Management shall have the right at Management’s sole discretion to determine the extent and na ture of any and all additions, removals, repairs, and/or replacements necessary to improve the Lot to a condition suitable for the installation of a new mobilehome.

With respect to Subsection A above, following Homeowner’s notice to Management that Homeowner has decided to replace the exis ting mobilehome, Homeowner will receive written notification of the Base Rent increase resulting from the replacement of the home ninety (90) days after Homeowner’s notice to Management of replacement of mobilehome. The increase in Base Rent, resulting from the replacement of the mobilehome, will become effective on the date the Certificate of Occupancy has been issued by the applicable government agency . The annual Base Rent increase per Section 4 will also be charged on the Base Rent anniversary date.

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 9 10. INFORMATION TO BE SUPPLIED BY MANAGEMENT:

A. Within thirty (30) days after the effective date of this Agreement and upon re-renting of each mobilehome lot during the term of this Agreement, Management shall supply each tenant with a current copy of this Agreement .

B. Whenever Management serves a notice of Base Rent increase on a current Homeowner, Management shall also advise the Homeowner in writing of the percentage amount of the rent increase and the amount of the new rent .

C. If Homeowners’ Additional Rent is increase d pursuant to, 1) Government or Quasi- Government Mandated Costs, or 2) Emergency or Disaster Related Costs, as defined in Section 5. Management’s calculations with respect to said Additional Rent increases, as well as pertinent supporting documentation, will be available for Homeowners’ review at the Community office, as of the date of notice of the increase to the Tenant for a period of 90 days
.

11. DISPUTE RESOLUTION PROCEDURE:

A. The dispute resolution procedure described herein is the sole and exclusive remedy to address the issue of whether or not a material term of this Agreement has been violated by either Management or Homeowner(s). If either party believes that the other party has violated a material term of this Agreement, then that party shall file a written request, on a form to be provided by the Ci ty, requesting mediation of the dispute.

Upon receipt of such a written request, within fourteen (14) days thereafter, the City shall refer the parties to the City Manager or their designee. Before referring the parties to mediation as discussed below, the City will first determine that the complaint alleged is a violation of a material term of this Agreement. If the City finds that the complaint does not allege a material violation of this Agreement, no mediation will be scheduled and the parties will be so notified. The parties will participate in a mediation of the dispute under the auspices of the City Manager or their designee. Any mediated settlement shall be reduced to writing and signed by Management, and the Homeowner or Homeowners’ authorized representative and the mediator. If the dispute cannot be mediated, then the mediator will advise the City in writing that the dispute cannot be mediated. Either party may then request of the City in writing that the dispute be submitted to arbitration. The City shall bear the costs of providing the mediation; and the parties shall bear their own costs and attorneys’ fees in connection with the mediation
.

B. A party may request arbitration only after the mediation process has been completed and the mediator in writing has advised the City that the dispute cannot be successfully mediated. Within seven (7) days of a written request for arbitration, the City shall refer the dispute to the American Arbitration Association for arbitration. The arbitrator will be charged with determining whether either party has violated a material term of this Agreement and declare a remedy in accordance with applicable law. The arbitrator(s) will be selected in accordance with the procedures of the American Arbitration Association and the arbitration will be conducted in accordance with the Rules of the American Arbitration Association . The City shall have no obligation to bear any fees and/or costs associated with the Arbitration.

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 10 12. TERMINATION: This Agreement shall terminate on midnight, January 31, 2034, unless repealed earlier by mutual agreement in writing between Management and Homeowners. Any rent increases allowed by this Agreement, which have been initiated but not completed during its term, shall continue in a manner consistent with the provisions of the Agreement until they expire. Similarly, in the event of the City, County, State or Federal government enacts law inconsistent with the terms of this Agreement, then this Agreement shall prevail through the date of Termination. Should a court of competent jurisdiction adjudicate that the Agreement is superseded by a subsequently enacted law or regulation, then all and any rent increases allowed by this Agreement, which have been initiated but not completed during its term and prior to the effective date of the law or regulation in question shall continue in a manner consistent with the provisions of this Agreement and until they expire. A rent increase is “initiated” upon service of the 90 day implementation notice, as required under this Agreement and Civil Code section 798.30.

13. EXTENSION OF AGREEMENT: This Agreement may be extended for a similar term, or any term acceptable to all parties to this Agreement, provided that any extension will be in writing and signed by all the parties to this Agreement.

14. ATTORNEYS’ FEES: In the event that it becomes necessary for any party to bring a lawsuit to enforce any of the provisions of this Agreement, the parties agree that a court of competent jurisdiction may determine and fix a reasonable attorneys’ fees to be paid to the prevailing party. This provision extends to the prevailing party in any arbitration initiated under Section 11.B above.

15. BINDING ON SUCCESSORS: This Agreement is binding on the heirs, successors, and assigns of the parties hereto.

16. AMENDMENT: This Agreement may be amended, modified, or changed by the parties provided that said amendment, modification, or change is in writing and approved by all parties.

17. CIVIL CODE: The provisions of this Agreement are in addition to the provisions of the Mobilehome Residency Law set forth in Articles l to 9, Chapter 2.5, Title II, Part Two of the California Civil Code.

18. INTERPRETATION: All parties involved have prepared this Agreement and any legal presumptions as to the interpretation of any ambiguity herein shall be applied equally against all parties involved. This Agreement is in the nature of a settlement agreement.

19. ENTIRE AGREEMENT: This Agreement contains the entire agreement between the parties hereto. No promise, representation, warranty or covenant not included in the Agreement has been or is relied on by any party hereto.

20. COUNTERPARTS: This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which shall constitute one agreement notwithstanding that all signatories are not signatories either on the same date or to the same counterpart. A signature page may be detached from the counterpart when executed and attached to another counterpart, which other counterpart shall become the complete agreement.

21. SEVERABILITY: If any section or portion of this Agreement is found to be invalid, such findings shall not affect the validity of the remainder of the Agreement, which shall continue in full force and effect.

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 11 22. SUSPENSION OF RENT STABILIZATION REQUEST: In consideration of the execution of this Agreement by Management, and to the extent permitted by law, the City will suspend consideration of the adoption of a mobilehome rent stabilization ordinance. If however, Management shall fail to fulfill its obligations under this Agreement, then the City is free to consider enactment of a mobilehome rent stabilization ordinance. If Management is operating the community in compliance with the terms of this Agreement, it shall be exempted from any mobilehome rent stabilization ordinance for the remaining term of this Agreement.
[SIGNATURES ON NEXT PAGE]

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) 12 TI

MBER COVE MOBILEHOME COMMUNITY JOINT VENTURE
Doing business as TIMBER COVE MOBILEHOME COMMUNITY
Dated: By:

Jeffrey Moore, Brandenburg, Staedler & Moore – TC, LP
TI

MBER COVE HOMEOWNERS ASSOCIATION
Dated: By:

Christine Snyder, Timber Cov e Homeowners Association
President
Dated: By:

Dated
: By:

TY OF CAMPBELL
Dated: By:

Susan M. Landry, Mayor
Approved
as to form and content:

Dated: By:

William Seligmann, City Attorney
Dated
: By:

Andrew Ditlevsen, Attorney for Timber Cove
J
oint Venture doing business as Timber Cove
Mobilehome Community
Dated: By:

Bruce E. Staton, Attorney for the Timber Cove
Hom
eowners Association
4869-2789-3418.2

5/17/2024
5/17/2024
5/24/2024
5/28/2024

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Attachment: Timber Cove Rent Stabilization Agreement (Mobile Home Rent Stabilization Tri-Partite Agreement) City
Council
Report
TITLE: Introduction of Proposed Fiscal Year (FY) 2025 Operating Budget and 2025 - 2029 Five-Year Capital Improvement Plan (CIP)

RECOMMENDED ACTION
That the City Council review the Proposed Fiscal Year (FY) 2025 Operating Budget and 2025-2029 Capital Improvement Plan (CIP) as presented; provide direction to staff to proceed with finalizing the budget; and establish June 18, 2024 as the date for a public hearing and adoption of the FY 2025 Operating Budget and CIP, as well as the Gann Appropriations Limit.

BACKGROUND
The Proposed Fiscal Year (FY) 202 5 Operating Budget and 202 5 - 2029 Five-Year Capital Improvement Plan (CIP) has been posted on the City’s website at https://www.ci.campbell.ca.us/151/Budget . Also posted at this location is the complete First Update of the Seven-Year Financial Forecast which covers FY 2025 through FY 2031. The purpose of this agenda item is to formally introduce the Proposed Operating Budget and CIP to the City Council and the public and to obtain feedback and direction prior to the scheduled adoption on June 18, 2024.

DISCUSSION
For ease of viewing, staff has also attached to this report the City Manager’s Transmittal Letter (Attachment A). Thank you for your review and consideration of the Proposed Fiscal Year (FY) 202 5 Operating Budget and 202 5 - 2029 Five-Year Capital Improvement Plan (CIP). Staff looks forward to speaking with you further on June 4, 2024.

FISCAL IMPACT
Complete fiscal impacts are provided with the City Manager’s Transmittal Letter and the Budget and CIP documents.

Item: 12
Category: PUBLIC HEARINGS AND

INTRODUCTION OF

ORDINANCES
Meeting Date: June 4, 2024
12 Packet Pg. 203
Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets Page 2 of 2 Prepared by:

Will Fuentes, Finance Director
Approved by:

Brian Loventhal, City Manager
Attachment:
a. City Manager's Transmittal Letter
12 Packet Pg. 204

June 4, 2024
Honorable Mayor, Vice-Mayor, and City Councilmembers:

I am pleased to introduce to you the Proposed Fiscal Year (FY) 202 5 Operating Budget and 2025 - 2029 Five-Year Capital Improvement Plan (CIP) . The Operating Budget and CIP serve as a policy document, a financial plan, a communication's device, and an operation’s guide; reflecting the policies, goals, programs , and service priorities and values of the City Council and the Campbell community. Specifically, the current budget and CIP process again emphasizes a Priority-based Budgeting approach to link City resources with the strategic priorities of the City Council and community, while also seeking to maintain fiscal prudence. This process started at the February 28 Special Meeting, in which the City Council set the organizations’ FY 2025 priorities shown as Exhibit A. That meeting was then followed up by the May 7 Budget Study Session, in which Council provided staff input and direction on the items below:
• Preliminary FY 2025 Workplans
• Preliminary FY 2025 Operating Budget (General Fund)
• Preliminary 2025 – 2029 CIP
Using Council input and direction received, staff has collaboratively prepared FY 202 5 Proposed Workplans shown as Exhibit B as well as the Proposed Budget and CIP. Please note that where possible, resources needed to achieve each Workplan are also identified in Exhibit B. The budget development process though continues to be an iterative process and there will be additional opportunities for Council feedback as well as community input on June 4 (Budget Introduction) and June 18 (Budget Adoption). Any further Council feedback that reaches majority consensus at the June 4 Budget Introduction will be incorporated into the June 18 Budget Adoption if it is fiscally feasible. In preparation for those meetings and so as to provide a high-level overview of the proposed budget and CIP, this transmittal letter will address the following items:
• A – Financial Summary
• B – Economic Update and Outlook
• C – Long-Range Forecast
• D – Federal, State, and Other Aid
• E – Budget Awards
• F – Next Steps
• G – Conclusions and Acknowledgements
• Exhibit A - FY 2025 Adopted City Council Priorities
• Exhibit B – FY 2025 Proposed Workplans

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets)

A - FINANCIAL SUMMARY

General Fund – Financial Summary

Table 1 – General Fund Summary

For a more detailed Fund Balance Report, please see the Fund Summaries section of the Budget book

Currently Proposed FY 2025 Operating and Capital expenditures for the General Fund equal $68.7 million and include:

• $2.2 million in interfund operating transfers out to support operations in other funds; including $722,000 to support the Lighting and Landscaping District Fund, $686,000 to support the IT Fund, and $766,000 to pay for 2016 Lease Revenue Bond (LRB) debt service,
• $1.7 million in interfund capital transfers out to support Capital Improvement Plan Reserve (CIPR) projects; with $750,000 set aside as the General Funds annual CIPR contribution towards new projects and $ 952,000 for carryover CIPR projects previously approved,
• $75,000 in interfund capital transfers out to support Construction Tax projects; with the entire amount proposed to be offset by a drawdown of Construction Tax reserves, • 3% assumed salary growth for employees due to approved bargaining agreements, • Other compensation special adjustments to bring certain positions to median, • 8% assumed healthcare premium growth based on historical trends, • Assumption that certain vacancies will be frozen until at least January 1, 2025 ; with approximate savings of $917,00 0 and more detail to be provided in subsequent sections,

Related General Fund revenue sources also total $68.7 million and include:

• $1.4 million in interfund operating transfers in to support General Fund operations; including a n approximately $1.2 million proposed transfer from the ARPA fund to support various General Fund operations and previously approved ARPA uses to be 101 GENERAL FUND
FY 22 Actual FY 23 Actual FY 24 Est. FY 25 Prop. %Chg*
Beginning Fund Balance July 1(A) 15,527,036$ 16,537,379$ 16,753,858$ 16,753,858$ (A) - Econ Fluctuations + Emergency + Unassigned + PERS Revenues
Total Revenues 57,298,806$ 63,029,077$ 69,507,088$ 68,752,590$ -1.1% Expenditures FY 22 Actual FY 23 Actual FY 24 Est. FY 25 Prop. %Chg* Total Expenditures by Type 56,288,463$ 62,812,598$ 69,507,088$ 68,752,590$ -1.1% Revenues vs Expenditures 1,010,342$ 216,479$ -$ -$ Ending Fund Balance June 30 16,537,379$ 16,753,858$ 16,753,858$ 16,753,858$ *% Change from FY 2024 Estimated to FY 2025 Proposed Budget

FUND BALANCE REPORT

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) detailed in subsequent sections , a normal $ 144,000 transfer from the Community Facilities District (CFD) #1 fund to support Police and Fire services, $6,000 from the CFD #2 fund to support Land Development, and $50,000 from the Motor Vehicle Pool fund to support Administrative and Fiscal Oversight of the division, • $1.252 million draw from the Pension Reserve to fully offset the large increase in the City’s required contribution towards its unfunded actuarial liability (UAL) for pensions as discussed with Council at the May 7 Budget Study Session, • $952,000 draw from th e accumulated CIPR funds to support $952,000 in carryover CIPR projects previously approved, and
• $75,000 draw from Construction Tax reserve to support capital projects as previously discussed

This results in estimated General Fund expenditures being fully balanced against estimated General Fund revenues in FY 2025. In summary, in the General Fund, expenditures for FY 2025 show a 1.1% decrease when compared to FY 202 4 Year-End Estimates of $69.5 million. Conversely, General Fund revenues for FY 2025 also show a 1.1% decrease when compared to FY 2023 Year-End Estimates of $69.5 million.

At the May 7 Budget Study Session, staff presented Council with an estimated $3.87 million structural operating deficit within the Preliminary FY 2025 General Fund Budget. Since that time and given Council feedback at the Study Session, staff has incorporated several short- term budget corrections strategies to close this gap as well reduced expenditures in any areas operationally feasible. These measures are summarized in Table 2 below and immediately following the table:

Table 2 – FY 2025 General Fund Budget Correction Strategies Incorporated Correction Strategy FY 2025 Estimated Savings
Temporary Hiring Freeze $917,000
Utilization of the City’s CalPERS Pension Reserve $1,252,000 Utilization of Remaining ARPA Funds $989,997
Other Expenditure Reductions $711,000
TOTAL $3,869,997

• Temporary Hiring Freeze (Estimated Savings $917,000) – At the May 7 Budget Study Session, staff identified 26 vacant positions equaling $3.77 million in FY 2025 and proposed that all be frozen for at least a half -year; resulting in potential savings of $1.89 million in FY 2025 . Since that time, staff has updated the list of vacant positions to reflect new employee hires and separations over the last several months since the list of vacant positions was initially prepared. This reduced the list down to 17 vacant positions having an estimated salary and benefit cost of $3.16 million in FY 2025. In a strategic and targeted manner and taking into account operational, Workplan, and service needs, t he Executive Team further reviewed the updated list and established recommended hire by dates for each currently vacant position shown in Table 3 below. For some positions, staff continues to recommend that they be frozen through at least December 31, 2024 or longer. And for other positions, staff is recommending that they be filled sooner due to where they are currently in the recruitment process or operational , Workplan, and service needs . This results in

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) overall estimated vacancy savings of $917,000. Adjustments to any dates shown could have additional savings or costs depending on if hired later or sooner:

Table 3 – Vacant Positions

• Utilization of the City’s CalPERS Pension Reserve ($1,252,000) – As discussed at the May 7 t Budget Study Session, the City wisely established a CalPERS Pension Reserve several years which has a current balance of $2.252 million. Several public agencies have established these types of pension reserves and one common and appropriate use is to offset large spikes in annual CalPERS payments; thereby smoothing costs. Thus, staff continues to recommend utilizing $1.252 million of the City’s CalPERS Pension Reserve in FY 2025 to fully offset the large increase in the City’s required contribution towards its UAL; leaving a balance in this reserve of $1.000 million for future pension needs. While the draw down of any reserve is never ideal, staff recommends building up this reserve in the future should the City’s financial condition allow it. One of staff’s proposed FY 2025 Workplan items is to develop a plan to pay down the City’s UAL and reduce overall pension costs over time. Part of that plan will include the development of a Council policy clarifying the ongoing acceptable use of the City’s CalPERS P ension Reserve and how to build it up to an adequate level over time.

Department Job Title
Total Comp ($)
Full Year Hire by Date
Total Comp ($)
Adjusted
Estimated
Savings
C ity Manager EC ON DEV MANAGER(1) 272,048$ 10/1/2024 203,477$ (68,571)$ C ity Manager HR ANALYST 187,715$ 11/1/2024 124,458$ (63,257)$ C ity Manager HR MANAGER 285,444$ 8/1/2024 261,201$ (24,243)$ C ity Manager HR REP 157,919$ 10/1/2024 118,115$ (39,804)$ C ity Manager IT MANAGER 258,429$ 1/1/2025 128,152$ (130,277)$ C omm Dev PERMIT TEC H 149,470$ 8/1/2024 136,775$ (12,695)$ C omm Dev UNHOUSED SPEC IALIST 148,230$ 7/1/2024 148,230$ -$ Police C OMM SERV OFFIC ER 161,616$ 7/1/2024 161,616$ -$ Police EMERG SVC S C OORD 117,310$ 1/1/2025 58,173$ (59,137)$ Police IT ADMINISTRATOR (PD) 216,137$ 7/1/2024 216,137$ -$ Police POLIC E OFFIC ER 219,564$ 1/1/2025 108,880$ (110,684)$ Public Works BLDG MNT WKR 162,561$ 7/1/2024 162,561$ -$ Public Works EQUIP MNT SPVSR 186,023$ 1/1/2025 92,247$ (93,776)$ Public Works LGT/TRF SIG SPVSR 210,999$ 1/1/2025 104,632$ (106,367)$ Public Works PARK MNT LEAD WKR 152,965$ 1/1/2025 75,854$ (77,111)$ Public Works SR C IVIL ENG (PPT) 194,400$ 10/1/2024 145,401$ (48,999)$ Rec & C omm REC SPEC IALIST (PPT) 81,729$ 7/1/2025 -$ (81,729)$ TOTALS 3,162,559$ 2,245,909$ (916,651)$ (1) - So as to more effectively implement the Economic Development Strategic Plan, staff is recommending that the currently vacant Economic Development Specialist be reclassified to an Economic Development Manager. A complete job specification and proposed salary range will be brought to Council for consideration in the near future. Estimated costs shown could change, but reflect the current job market for such a position.

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) • Utilization of Remaining ARPA Funds ($989,997) – As discussed at the May 7 th Budget Study Session, when all known and planned uses are taken into account through the end of FY 2025, the City has remaining ARPA funds equaling $2.06 million. As detailed in prior reports, these funds must be fully obligated through contractual agreements by December 31, 2024 and fully spent down by December 31, 2026. Recent ARPA guidance has also modified the definition of contractual obligation to include salary and benefit costs included within an adopted budget. Per such revised guidance, ARPA recipients such as the Cit y of Campbell, may consider themselves to have obligated funds to maintain certain personnel costs through December 31, 2026 for any position that existed and was filled by December 31, 2024.

Given these guidelines as well as well as the City’s projected General Fund operating deficit in FY 2025, staff recommends using $989,997 of the remaining ARPA funds to support General Fund operations in FY 2025; an increase of $260,000 since the Budget Study Session. However, while this is an increase, staff also recommends that the following previously approved uses of ARPA be reduced or removed; thereby freeing up $400,000 of ARPA funds for other allowable purposes:
o Parklet Grant Program (Reduce by $40,000) – The initial parklet grant program was established to support up to ten (10) downtown businesses at a maximum grant amount of $40,000 each and $400,000 total. Only four (4) eligible businesses applied and thus, the program allocation was reduced to $240,000 to allow for the possibility that two (2) remaining eligible businesses could apply. At this point, there is only one (1) remaining eligible business that has indicated they might apply for the grant funds. Thus, staff recommends reducing this program down further to $200,000; thereby freeing up $40,000 in ARPA Funds.
o Contracted PERT Clinician (Defer and Save $360,000) – During the FY 2024 Budget process, staff proposed a Workplan to coordinate with the Santa Clara County Behavioral Health to enter into an MOU to obtain a PERT Clinician to provide alternative responses to mental health crises. Council approved staff’s recommendation with funding to come from ARPA in the amount of $180,000 annually in FY 2024 and FY 2025 ; $360,000 total, However, since that time, the County has increased the cost of this service to $230,000 annually and an MOU has not been agreed upon with the City. Thus, staff proposes deferring this program for now and potentially paying for the costs through outside grant funds in the future or if other City revenue sources become available. However, such a deferral would likely fall outside the deadline of December 31, 2024 to contractually obligate ARPA funds. Council though could provide direction to staff to enter into a MOU with th e County sooner, at the higher rate, and contractually obligate ARPA funds as needed and within required deadlines.

As shown in Table 4, once all actual, planned, and proposed uses of ARPA funds are taken into account, this would leave a balance of $1.46 million. Please note that this

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) does not include $1.0 million of CIP projects previously proposed at the Budget Study Session and listed below. Council though may also provide direction to staff to utilize ARPA funds for these purposes or any other purposes to meet Council priorities:
• City Facilities Roof Replacement (Project 24TT) - $375,000 • Campbell PDA Enhancements - Civic Center Dr at 2nd and 3rd Street (New Project) - $625,000
Table 4 – ARPA Fund Status
Prior Year FY 2024 FY 2025
Actuals Budget Proposed
Beginning Balance -$ 7,651,277$ 2,946,093$

REVENUES
ARPA Payment from US Treasury 9,997,774 - -
Interest Income 43,173 - -
Sub-Total: Revenues 10,040,947 - -

EXPENDITURES
General Fund - Operational Support (1) 2,214,670 837,087 989,997 Campbell Community Center (CCC) Wi-Fi Project 125,000 - - PPE & Misc. COVID Supplies 14,000 - -
Downtown Barrier Monthly Rental 36,000 - -
Parklet Grant Program (2) - 160,000 40,000
HRIS Implementation and Payroll Operational Support - 60,000 - Employee Health Screenings - 56,000 -
Boiler & HVAC Replacement - 31,000 -
Replacement Storage Area Network System - 132,000 -
23OO Campbell Water Tower Light Replacement - 50,000 -
24HH ADA Transition Plan - FY24 - 50,000 -
24NN Citywide ITS Enhancement Phase 2 - 100,000 -
24OO CCC - Heritage Theatre Boiler - 90,000 -
CCC - Building A HVAC Controls - 85,000 -
CCC - Building A Sewer Line Replacement - 45,000 -
CCC - Building M Roof Replacement - 400,000 -
City Facilities Roof Replacement - 475,000 -
City Hall - HVAC Chiller Replacement - 150,000 -
Contracted Mental Health Clinician - 100,000 100,000
Contracted PERT Clinician (3) - - -
Housing Manager (4) - 210,585 220,352
Limited-Term Environmental Programs Specialist (5) - 134,512 136,246 Parks and Recreation Master Plan - 200,000 -
Climate Action Plan - 300,000 -
Public Safety Building CIP Support - 939,000 -
Ballot Measure Polling, Legal, and Related Consulting - 100,000 - Sub-Total: Expenditures 2,389,670 4,705,184 1,486,595 Ending Balance 7,651,277$ 2,946,093$ 1,459,498$

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) Staff is again proposing that $989,997 in APRA Funds be utilized to support General Fund operations in FY 2025. While this amount will support a wide range of City services in FY 2025 including those in Police, Fire, Parks, Recreation, and Community Development, staff is also targeting these funds to support the following high -priority Workplan items and Council Priorities:
• Economic Development Staffing and Contractual Costs to Support Implementation of Recently Completed Economic Development Plan and Advance the Council Priority of Fiscal Stability - $466,000 • Election Costs to Support Placement of Up to Two (2) Revenue Measures on the November 2024 Ballot and Advance the Council Priority of Fiscal Stability Pending Community Surveys and Council Guidance - $216,000 • The City’s Share of Senior Nutrition Program Costs to Advance the Council Priority of Community Health and Safety - $138,000
• Fire Service Contractual Cost Increases to Protect Community Health and Safety - $366,000
While staff believes these are fiscally prudent uses of ARPA funds and allowable under ARPA guidance, staff also requests Council feedback and direction on all proposed uses of ARPA funds and any others that Council would like staff to consider. Staff has performed preliminary analysis of some other options that could be supported by remaining ARPA funds as shown in Table 5 below. Each option has its pros and cons and staff can explore any further if Council wishes. If necessary, staff will also schedule a follow up meeting with Council in the near future to discuss the obligation and spend down of all remaining ARPA funds before the required deadlines:

Table 5 – Other Potential ARPA Uses
Use Pros Cons
Universal Basic Income (UBI)
Program
• Assists Disadvantage
Population
• Could be Run as Pilot
Program
• Could Model after
Programs in Other
Cities
• Significant Program
Administration and
Development Time
• Qualification of
Applicants
• Subrecipient
Reporting to ARPA
• Possible Limited
Participant Scope
• Uncertainty as to
Effectiveness
Hotel Voucher Program for
Unhoused
• Assists Unhoused
Population
• Furthers City Council
Priorities and
Workplans
• Program
Administration Time
• Qualification of
Applicants
• Subrecipient
Reporting to ARPA

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) Use Pros Cons
• Reduces City’s TOT
Revenue
Hotel Stays for Unhoused during
Inclement Weather
• Assists Unhoused
Population
• Furthers City Council
Priorities and
Workplans
• Could Model after
Programs in Other
Cities
• Program
Administration Time
• Qualification of
Applicants
• Subrecipient
Reporting to ARPA
• Reduces City’s TOT
Revenue
Buy Down of At Risk Below Market
Rate Units
• Assists Unhoused
Population
• Furthers City Council
Priorities and
Workplans
• Could Model after
Programs in Other
Cities
• Very expensive
• Limited impact for a
short period of time
• Need for ongoing
funding to sustain
impact
• Program
Administration Time
• Subrecipient
Reporting to ARPA

• Other Expenditure Reductions ($711,000) – Since the May 7 Budget Study Session, staff has also re-examined their FY 2025 Budget Requests and reduce costs in these areas:

o Updating Salary and Benefit Costs to reflect recent hiring of employees at a lower step and benefit level than previously assumed - $242,000

o Reduction in Discretionary Overtime, including the following service areas, with a shift towards flexing schedules and/or accruing compensatory leave time - $45,000:

▪ Human Resources (101.515) - $15,000 decrease
▪ Community Development Admin. (101.550) - $30,000 decrease

o Reducing Outside Contractual Services, including the following, and utilizing existing staff to pick up some of the requested work or deferring until fiscal circumstances allow for the added outside work - $301,000:

▪ CDD Contract Grant Support (101.550) - $10,000 decrease ▪ Contract Staff Planning Services (101.551) - $35,000 decrease ▪ Deferral of Geologic Study of Cascade (101.552) Fault to FY 2026 - $30,000 decrease
▪ Zoning Code Updates (101.5512) - $35,000 decrease
▪ Contract Plan Checking - Structural Engineer Fees (101.554) - $150,000 decrease
▪ Some Economic Development Implementation Efforts that can be done later or done cheaper (101.556) - $41,000 decrease

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) o Reducing Training Expenses to reflect less anticipated staff training needed in FY 2025 - $6,000

o Reducing Operating Transfers Out to Other Funds based on budgetary reductions in those funds - $117,000

While the preceding are again short -term budget correction strategies that can bridge the General Fund budget gap in FY 2025, staff continues to recommend that Council consider the following long-term budget correction strategies:

• Placement of One or More Revenue Measures on November 2024 Ballot – As discussed during the March 19, 2024 Study Session , Council may wish to place a variety of revenue measures on the November 2024 ballot to achieve a number of priorities. To assist in these efforts, staff is currently working with consultants to survey residents on several options and develop potential ballot measure language. $100,000 was added to the FY 2024 Operating Budget at mid -year to fund these consultant services. Staff will return to Council at a later date in the near future to provide an update on their progress and receive further Council dire ction. Additionally, the Preliminary FY 2025 Operating Budget again includes $216,000 to support election expenses paid to the County for both district elections and potential ballot measure placements.

Given the structural imbalance of the City’s budget by $3.87 million in FY 2025, which follows a structural imbalance of $2.89 million identified during the FY 2024 Mid-Year Update and is being addressed by only short -term strategies in FY 2025 as detailed above, staff is currently assessing community interest in generating additional, locally controlled revenue sources. Community engagement surveys the City has conducted over the past decades all consistently show that Campbell residents value local control over local funds, the City’s tradition of fiscal prudence, and the high quality of services that local residents, businesses, and visitors have come to expect. Maintaining safe neighborhoods and commercial corridors, fire protection services, streets an d parks, addressing homelessness and expanding housing options have all been identified by residents as priorities. Unless additional reliable sources of locally controlled revenue are identified, the City may have no choice but to reduce core services our public relies on. That’s why the City is taking decisive steps to survey our community about its current priorities and interest, if any, in expanding our locally controlled revenue. Any voter-approved funding sources require that the funds be spent locally, and those revenues cannot be taken by Sacramento. Staff will return to Council in the near future to present the resu lts of its community engagement surveys and gauge Council’s interest in placing revenue measures on the November 2024 ballot given community feedback.

• Restructuring and Repurposing of Current City Reserves – The City has a number of current reserves which provide it with fiscal stability. Some reserves are highly duplicative in purpose or have no policy on when they may be used. Staff recommends restructuring and repurposing the City reserve funds. Based on Council feedback received at the May 7 Budget Study Session , staff will return to the full Council at a later date in FY 2025 with a recommendation on draft policy language for

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) City Council’s consideration . Any such recommended changes will not reduce the overall level of City reserves, but instead clarify their use and means of replenishment and direct them towards the highest priority City purposes.

All City Funds – Financial Summary

Table 6 – All Funds Summary

For a more detailed Fund Balance Report, please see the Fund Summaries section of the Budget book

Currently Proposed FY 2024 Operating and Capital expenditures across all City funds equal $100.2 million and include:

• $3.8 million in interfund operating transfers out to support operations, • $6.6 million in interfund capital transfers out to support capital projects, • $3.1 million in scheduled Measure O debt service payments, • 3% assumed salary growth for employees due to approved bargaining agreements, • Other compensation special adjustments to bring certain positions to median, • 8% assumed healthcare premium growth based on historical trends, • Assumption that certain vacancies will be frozen until at least January 1, 2025; with approximate savings of $917,00 0 and more detailed to be provided in subsequent sections,

Related revenue sources total $96.1 million and include:

• $3.8 million in interfund operating transfers in to support operations, • $6.6 million in interfund capital transfers in to support capital projects, • $1.252 million draw from the Pension Reserve to fully offset the large increase in the City’s required contribution towards its unfunded actuarial liability (UAL) for pensions, • $952,000 draw from the accumulated CIPR funds to support $ 952,000 in carryover CIPR projects previously approved, and
• $75,000 draw from Construction Tax reserve to support capital projects

This results in an annual deficit of approximately $5.1 million across all City funds. However, this deficit is largely due to proposed spending down of some of the City’s one-time remaining ARPA funds by $1.5 million and the draw down of $540,000 in accumulated Measure O bond

ALL FUNDS SUMMARY
FY 22 Actual FY 23 Actual FY 24 Est. FY 25 Prop. %Chg*
Beginning Fund Balance July 1 56,890,257$ 96,824,524$ 100,688,119$ 42,311,317$ Revenues
Total Revenues 163,265,521$ 94,060,104$ 105,058,551$ 96,106,945$ -8.5% Expenditures FY 22 Actual FY 23 Actual FY 24 Est. FY 25 Prop. %Chg* Total Expenditures by Type 123,331,254$ 90,196,509$ 163,435,353$ 101,195,567$ -38.1% Revenues vs Expenditures 39,934,267$ 3,863,595$ (58,376,802)$ (5,088,622)$ Ending Fund Balance June 30 96,824,524$ 100,688,119$ 42,311,317$ 37,222,695$ *% Change from FY 2024 Estimated to FY 2025 Proposed Budget

FUND BALANCE REPORT

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) premiums to partially pay for the aforementioned $3.1 million in scheduled Measure O debt service payments; with the remaining $2.6 million in debt service expected to be supported by estimated Measure O special property tax assessments in FY 202 5. Please note that similar to prior years, staff will return to Council by early August 2024 to seek approval of Measure O tax rates for FY 202 5 that are sufficient to support the remaining annual debt service payments.

In summary, across all City funds, expenditures for FY 2025 show a 38.1% decrease when compared to FY 2024 Year-End Estimates of $163.4 million. This decrease is largely due to most Measure O bond proceeds being appropriated in FY 2024 so that construction contracts could be entered into to complete the associated Library and Police building projects.

Operating Expenses though only shown a 1.1% decrease when compared to FY 2024 Year- End Estimates of $89.5 million. Conversely, across all City funds, revenues for FY 2025 show a 8.5% decrease when compared to FY 202 4 Year-End Estimates of $105.6 million. This decrease is largely due to the full recognizing of grant and other misc. one -time revenue related to Measure O projects in FY 2024.

General Fund and Citywide revenue estimates and proposed expenditures by type and department are shown in the Fund Summaries and Departments sections of the Budget Book.

And for more information on the assumptions used to estimate key revenues and other significant items of note, please see the Funding Sources sections of the Budget Book.

B - ECONOMIC UPDATE AND OUTLOOK

In April 2024, the US labor market showed signs of moderation. The report released on Friday, May 3rd by the Bureau of Labor Statistics (BLS) showed employers scaled back hiring, resulting in a modest increase of 175,000 jobs in nonfarm payrolls, the smallest gain in six months. The Bureau's report also highlighted an unexpected rise in the unemployment rate to 3.9% from 3.8%, providing further support of a potential cooling in the job market after a strong start to the year. Wage gains slowed, with average hourly earnings climbing 0.2% from March and 3.9% from a year ago, the slowest pace since June 2021. Sectors such as leisure and hospitality, construction, and government experienced slowdowns in job growth, while healthcare, transportation, and retail trade saw more substantial gains.

Initial US Jobless Claims increased 22,000 to a higher-than-expected 231,000 level, and Continuing Claims rose 17,000 to 1.785 million. Recent trends continue to indicate a tight labor market, but the job’s report for the week of May 10th may flash early warning signs of a slowdown. The University of Michigan Consumer Sentiment Index took a dive as inflation expectations increased. The preliminary index for May 2024 fell to 69.1 from 77.2 in April 2024. Consumers are seeing a stall in disinflation, and moderation in hiring and wage growth is also dampening consumers' confidence. Both current conditions and expectations dropped to the lowest levels since November 2023. The 1 -year inflation expectations measure rose three-tenths to 3.5%, and the 5 -year inflation expectations measure rose one -tenth to 3.1% in May, reaching their highest levels since November 2023. Relative stability in the 5 -year measure indicates that inflation expectations remain anchored. The report underscores staff’s view that consumer spending will slow in the face of growing headwinds such as depleted savings and increasing borrowing costs.

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) All eyes were on the Federal Reserve (Fed) in May as it maintained its current range for the federal funds rate between 5.25% and 5.50%, while acknowledging a lack of significant progress in curbing inflation to its 2% target. The Fed announced a slower reduction in bond holdings on its balance sheet, with the monthly cap on Treasurys reduced to $25 billion from $60 billion but maintaining the mortgage roll -off at $35 billion. Thus, the total balance sheet reduction cap decreased to $60 billion from $95 bil lion per month. This decision suggests a cautious approach to monetary policy adjustments, as Fed Chair Jerome Powell emphasized that inflation remains a concern. Powell also indicated that the next move in interest rates is unlikely to be an increase, providing relief to some investors who had speculated about such a move. The policy updates reflect the Fed's ongoing efforts to balance economic growth while returning the economy to its 2% inflation target.

Meanwhile, US housing remains strong, with home prices rising 7.3% year -over-year in February 2024, as reported by the S&P CoreLogic Case -Shiller national home price index.

San Diego saw the biggest rise in prices in the 20-city index, up 11.4% from February of 2023.

Chicago and Detroit reported 8.9% annual increases. The strong housing data was contrasted by the decline in consumer confidence, as reported by the Conference Board, to its lowest level since mid-2022, reflecting concerns about job availability, income prospects, and overall economic conditions. The Institute for Supply Management reported US factory activity contracted in April 2024, while input prices rose at the fastest pace since 2022, posing challenges for producers amidst sluggish global markets. These factors, coupled with inflationary pressures and high borrowing costs, underscore the challenges facing households, businesses, and policymakers.

US Housing data also fell short of expectations in some areas reflecting elevated mortgage rates which continue to constrain buyer demand. Housing starts rose 5.7% year -on-year to

1.36 million units on an annualized basis, but are still hovering near their post-pandemic lows and down from over 1.8 million units at the peak. Building permits which lead housing starts fell to their lowest level since December 2022. Existing US Home Sales fell -1.9% on a month- over-month basis in April 2024; the data marked t he second consecutive month of declines from -3.7% in March 2024. New Home Sales declined as well, falling -4.7% month-over- month. Consumers seem to share the sentiment as the University of Michigan Buying Conditions for Houses Index is also at a 46 -year low. The average US 30 -Year fixed rate mortgage had been steadily rising through the month of April peaking at over 7.4% before reverting to near 7% in May. Perhaps the higher mortgage rates contributed to the soft data, however seasonal adjustments to the indexes were likely a large factor.

Financial markets reacted positively to the economic releases and the Fed's stance on monetary policy. The S&P 500 rose by 0.20% to 5110, fueled by strong corporate earnings, while Treasury yields declined. The two -year yield dropped to 4.77%, and the 10 -year yield decreased to 4.48%, following Fed Chair Powell's remarks and subdued labor market data.

Looking ahead, the moderation in labor market growth and the Fed's cautious stance on monetary policy underscore the delicate balance between economic expansi on and management of inflation. Despite ongoing concerns, the market's response suggests cautious optimism about the economy's resilience amidst global uncertainties.

Inflation data was the market’s focus th e week of May 17 th after a string of hotter than expected data points so far this year. The Producer Price Index (PPI) came in above expectations for April 2024, with the core measure excluding food and energy rising 0.5%

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) month-on-month and 2.4% year -on-year. However, several PPI components that feed into the Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditure (PCE) Deflator, decelerated. In addition, the prior month’s PPI was revised lower f rom 0.2% month-on-month to -0.1% which also helped market sentiment.

Consumer Price Index (CPI) data for April 2024 came in line with expectations at the headline level. CPI rose 0.3% month-on-month and 3.4% year-on-year, while the core measure came in at 0.3% and 3.6% respectively. Encouragingly, the shelter component which makes up a large proportion of the CPI (and to a lesser extent, PCE) but lags real time rents continues to disinflate. The services component excluding shelter, which has remained stubbornly high, also decelerated from the prior months’ levels.

Elsewhere, US retail sales data came in below expectations this week supporting a growing narrative that consumption is finally moderating. April 2024 retail sales in the US were unchanged month -on-month but excluding more volatile components like gas, building materials and autos fell by 0.3%. Anecdotal reports from large retailers as they report earnings results also suggest consumers pulling back on spending and trading down.

In California, total nonfarm employment in the state increased by 5,200 jobs over the month of April 2024. Additionally, statewide unemployment equaled 5.3% in April 2024; unchanged from March 2024 and up from a rate of 4.5% in April 2023. In Santa Clara County, the rate decreased to 3.5% in April 2024; down from 4.1% in March 2024, but up from 2.9% in April 2023. And in Campbell, the rate decreased to 3.5% in April 2024; down from 3.8% in March 2024, but up from 2. 5% in April 2023. Thus, the County and City have seen some impacts due to recent layoffs in the technology sector, but it has not had a significant impact to unemployment numbers. At its pandemic high point in April 2020, the Campbell unemployment rate had reached 11.7%.

Staff continues to forecast slowed and relatively flat growth over the course of calendar year 2024 and through FY 2025 . Financial conditions have clearly tightened and are having the desired Treasury impact of slowing down the velocity of the economy, but likely not at the rate yet that the Fed was hoping . The Fed continues to believe that monetary policy is sufficiently restrictive, yet they will need to see more progress in the slowing of inflation data to initiate interest rate reductions. Staff believes inflation will continue to move lower, but that it still may take some time to come within normal levels.

C - LONG-RANGE FORECAST
The First Update of the Seven-Year Financial Forecast is shown and discussed in more detail in a separate section of this Budget book called “Long-Range Financial Forecast”. The forecast is meant to assist Council and staff in determining whether current expenditure decisions made in FY 202 5 can be supported long -term over through FY 203 1. While all budgetary requests can be supported by the General Fund and short-term corrective actions in FY 2025, based on staff’s initial analysis and reasonable growth projections in expenditure and revenues, the out years could be a challenge given the City’s structural deficit issues absent significant ongoing expenditure and service reductions and/or new revenue sources.

In regard to the latter, staff is again currently assessing community interest in generating additional, locally controlled revenue sources for potential placement on the November 2024 ballot.

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) D – FEDERAL, STATE, AND OTHER AID
As previously noted, the City is receive d $9.997 million total in one-time American Rescue Plan Act (ARPA) funding; with the first payment of $ 4.999 million received in FY 2021 and the second payment of $4.999 million received in FY 2022. These are one-time monies and must again be obligated (appropriated and/or encumbered through contractual agreements or approved and filled City staffing ) by December 31, 2024 and spent down fully by December 31, 2026.

In addition to ARPA, staff has submitted a $1.5 million federal budget request to Representative Eshoo’s office for Campbell Priority Development Area (PDA) Enhancements Projects in the downtown area. Staff is cautiously optimistic about being awarded these funds given support from Representative Eshoo, but has not been awarded funds yet and has not incorporated them into the City’s CIP.

E - BUDGET AND FINANCIAL AWARDS
For the 31st consecutive year, the City's FY 2024 budget received national recognition by earning the Government Finance Officers Association (GFOA) “Distinguished Budget Award.” To receive the Distinguished Budget Presentation Award, a city must publish a budget document that serves as a policy document, a financial plan, a communications device, and an operations guide. We believe the FY 2025 budget conforms to GFOA program requirements. Additionally, FY 2024 is the 26th year an award of “Excellence in Budgeting” has been received from the California Society of Municipal Finance Officers (CSMFO). Copies of both awards appear in the “Budget Reference Materials” section of this document. It also should be noted that the City’s Annual Financial Report has also been an award-winning document for excellence in financial reporting at both the State and national levels for many years.

F - NEXT STEPS
• June 18: Adoption of Operating Budget, CIP, and Gann Limit

G - CONCLUSION AND ACKNOWLEDGEMENTS
The development of the Proposed Fiscal Year (FY) 2025 Operating Budget and 2025 - 2029 Five- Year Capital Improvement Plan (CIP) was made possible through the knowledge and contribution of the City’s employees, input and support from our community, and direction of the City Council.

Despite the economic pressures of the past few years, the City has done well to preserve core services, but as the budget and CIP before you demonstrate, the City continues to face significant fiscal challenges in the short- and long-term and remains cautious, conservative, and strategic in our operational growth to ensure long-term fiscal resilience.

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

Respectfully submitted,

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets)

Brian Loventhal
City Manager

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) Exhibit A
FY 2025 Adopted City Council Priorities

Strategic
Objectives Council Priorities Staff Takeaways
Land Use
Long-Term Land Use
Planning and
Housing
• Continue implementation of the General
Plan, including the Housing Element
• Continue developing a comprehensive
Bike/Ped Safety Plan
• Continue developing Hamilton Avenue
Precise Plan
• Continue developing objective
standards for residential single-family
neighborhoods
• Utilize outside funding and other
resources to address the unhoused
• Consider rental policies
• Support traffic signal prioritization if
funding becomes available
• Maximize Park Development Fees and
other resources to meet resident’s
needs
Measure O

• Continue construction on Police
and Library buildings and provide
updates to Council and public
• Continue to support Oversight
Committee; providing information
as requested and required
Financial Health
Financial Stability • Develop strategic funding
recommendations to support the
implementation of Housing Element and
Housing program
• Support software and technology for
organizational, community, and fiscal
resiliency
• Support implementation of Economic
Development Plan
• Discuss and allocate remaining ARPA
funds
• Develop plans to address unfunded
pension liabilities
• Use facilities conditions assessment
study to develop plan to address
infrastructure needs
• Develop potential revenue measures for
placement on November 2024 ballot

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) Strategic
Objectives Council Priorities Staff Takeaways
• Continue to pursue grant funding
opportunities and funding by other
public agencies
• Support personnel recruiting efforts as
budgeted
Environment
Sustainability • Continue to support development of
Climate Action Plan
• Continue to implement SB 1383, equity
for all housing types
• Continue to support resiliency of City
facilities
• Support public outreach on City
sustainability practices (single use
plastics, food waste)
Community
Community Health
and Safety

• Support traffic calming program
• Support small businesses
• Promote mental health through first
responders and partnerships
• Promote 988 program (mental health
crisis lifeline)
• Inclusivity: consider ways to be more
inclusive, for example: ADA access,
sign language translation, etc.
• Promote Council and City initiatives:
• Continue to support crossing guard
program in partnership with the school
districts:
• Support emergency management
development and training

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) Exhibit B
FY 2025 Proposed Workplans
City Manager
CM Administration
• Provide staff support to the Civic Improvement Commission [Operational Need] • Coordinate, plan, and provide staff support for the State of the City event and All Hands Meeting [Operational Need] (Resources – Internal Staff Time) • Coordinate tracking of state legislation (that may impact City) with Legislative Subcommittee [Operational Need] (Resources – Internal Staff Time) • Continue to provide guidance and support for labor related issues [Operational Need] (Resources – Internal Staff Time)
• Promote City Council initiatives through various forms of media [Operational Need] (Resources – Internal Staff Time)
• In coordination with Legal Services, City Clerk’s Office, Finance, and outside consultants (as needed), provide overall guidance in the evaluation and development of potential ballot measures for November 2024 ballot [Council Priority – Financial Stability] (Resources – Internal Staff Time and Outside Consultants at approx. $100,000)
Measure O
• Provide overall coordination of Measure O Police, Library, and related projects [Council Priority – Measure O] (Resources – Internal Staff Time) • Provide support to the Measure O Citizens’ Oversight Committee [Council Priority – Measure O] (Resources – Internal Staff Time)
Human Resources
• In collaboration with the Finance Department and Information Technology (IT) Division as well as other key stakeholders, complete the implementation, testing, and training for a new Human Resources Information and Payroll System LEAD DEPARTMENTS – HR and Finance [Council Priority – Financial Stability] (Resources – Internal Staff Time and Contractual Services with Software Vendor) • Coordinate and plan Benefits Fair and Volunteer Program for City staff [Operational Need] (Resources – Internal Staff Time)
• Work with Liebert Cassidy Whitmore on meet and confer items with CMEA, CPCEA, CPOA, and CARP [Operational Need] (Resources – Internal Staff Time and Outside Legal Services)
• Open negotiations with CMEA, CPCEA, CPOA, and CARP for bargaining agreements expiring at the end of FY 2025 or the middle of FY 2026 [Operational Need] (Resources – Internal Staff Time)
• Launch citywide mandatory training to cover essential topics such as Harassment Prevention, Ethics, Anti -bias, Front Counter Security Training, and Active Shooter Training [Operational Need] (Resources – Internal Staff Time)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) Information Technology
• In collaboration with the Finance Department and Human Resources (HR) Division as well as other key stakeholders, complete the implementation, testing, and training for a new Human Resources Information and Payroll System LEAD DEPARTMENTS – HR and Finance [Council Priority – Financial Stability] (Resources – Internal Staff Time and Contractual Services with Software Vendor) • Provide IT consultation regarding Measure O projects [Council Priority – Measure O] (Resources – Internal Staff Time)
• Adapt Zero-Trust security stance for all enterprise technology platforms [Financial Stability] (Resources – Internal Staff Time and Outside Software Licensing) • Purchase and deploy replacement Network Firewall system [Financial Stability] (Resources – Internal Staff Time in coordination with Outside Vendors) • Replace 25% of antiquated desktop computers [Operational Need] (Resources – Internal Staff Time in Coordination with Outside Vendors) • Continue public meeting recording and management [Operational Need] (Resources – Internal Staff Time)
• Replace public meeting video and recording systems [Operational Need] (Resources – Internal Staff Time)
• PD - Upgrades related to DOJ mandates (NIBRS) [Operational Need] (Resources – Internal Staff Time)
Economic Development
• Begin Implementation of the City’s 2024 Economic Development Plan, including website improvements, creating a business guide, conducting outreach with brokers, and collaborating with the business stakeholders on upcoming events. [Council Priority-Financial Stability] (Resources – Contractual Staff followed by Hiring of Internal Staff)
• Begin work on potential branding and promotion of Dell / McGlincy area, including outreach and survey of existing businesses [Council Priority -Financial Stability] (Resources – Contractual Staff followed by Hiring of Internal Staff) City Clerk's Office
• Carry-forward from FY 2023 - Comprehensive review of citywide records; coordinating and implementing a revised records retention schedule and procedures [Operational Need] (Resources – Internal Staff Time and Outside Consultants at approx. $20,000) • Conduct the November 5, 2024, Municipal Election for Districts 1 and 2 [Operational Need] (Resources – Internal Staff Time and County Costs at approx. $18,000) • Support and assist internal and external teams with potential placement of revenue ballot measure [Financial Stability] (Resources – Internal Staff Time and County Costs at approx. $198,000)
• Review and evaluate new agenda management software [Operational Need] (Resources – Internal Staff Time and Setup Costs at approx. $13,000) Community Development

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) Administration
• In coordination with the Finance Department, City Council, key stakeholders, and outside consultants (as needed), develop funding strategies and options to support Housing Element programs. LEAD DEPARTMENTS - Community Development and Finance [Council Priorities –Long-Term and Land Use Planning and Housing and Financial Stability] (Resources – Internal Staff Time) • Upgrade permit tracking system to create greater efficiencies and increase performance in permit processing including establishing and tracking metrics for permit processing and inspections. [Operational Need] (Resources – Contractual Project Manager at approx. $60,000)
• Complete ordinance and policy updates to implement procedures for pass through funded technical studies [Operational Need] (Resources – Internal Staff Time) Policy Development
• Continue preparation of a Citywide Climate Action Plan [Council Priority – Sustainability] (Resources – Internal Staff Time and Outside Consultants at approx. $300,000 total for plan)
• In coordination with the Public Works Department, start preparation of Hamilton Avenue Precise Plan [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal Staff Time and Outside Consultants at approx. $400,000 total for plan)
• Support the Recreation and Community Services and Public Works Departments to prepare a Citywide Parks and Recreation Facilities Master Plan [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal Staff Time) • In coordination with the Public Works Department and contingent on grant funding, start preparation of a Citywide Multimodal plan with bicycle and pedestrian improvements [Council Priority – Long - Term Land Use Planning and Housing ] (Resources – Internal Staff Time and possible TBD Consultant Services at approx. $650,000 total)
• Complete updates to the City’s Multifamily Residential Development and Design Standards (MFDDS) – [Council Priority – Long Term Land Use Planning and Housing] (Resources – Internal Staff Time and possible TBD Consultant Services at approx. $145,000 total)
• Complete updates to the City’s Historic Preservation Ordinance and Mills Act Program [Council Priority – Long Term Land Use Planning and Housing] (Resources – Internal Staff Time)
Current Planning
• Create checklists and ordinance code updates for streamlining CEQA review of development projects consistent with the 2040 General Plan [Operational Need] (Resources – Internal Staff Time and Outside Consultant at approx. $17,000) • Implement annual code updates to comply with new state laws and implement streamlining to meet the city’s economic development goals. [Operational Need] (Resources – Internal Staff Time and Outside Legal Support at approx. $10,000)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) • Coordinate with the Planning Commission on evaluating and implementing modifications to Site and Architectural Review Committee. [Operational Need] (Resources – Internal Staff Time)
Building
• Complete necessary ordinance code updates and begin implementation of state laws requiring streamlined permitting for Photovoltaic and EV Charging projects. [Operational Need] (Resources – Internal Staff Time)
• Establish a staff training, leadership, and continuing education program for Building staff. [Operational Need] (Resources – Internal Staff Time) • Complete integration of Code Enforcement with the Building Division processes to address violations. [Operational Need] (Resources – Internal Staff Time) Housing Assistance
• Implement BMR Housing program improvements as identified in Housing Program audit in association with Housing Element implementation [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal Staff Time and BMR Consultant at approx. $175,000)
• Complete ordinance code updates to implement modifications to the City's Inclusionary Housing Ordinance and a Commercial Linkage Housing Fee to support Affordable Housing production [[Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal Staff Time and Outside Consultant) • Begin work on homelessness programs including hiring of an unhoused specialist [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal Staff Time)
• Prepare Ordinances to implement State Laws (SB 10 & 684) addressing missing middle housing [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal Staff Time)
• Conduct outreach to increase community awareness of housing assistance programs available in Campbell, including resources to support development of ADU’s [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal Staff Time and Outside Contract Support)
• Pursue Pro-Housing Designation from State Housing and Community Development [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal Staff Time)
• Pursue programs and actions that preserve existing affordable housing units that will convert to market rate housing by 2026 [Council Priority – Long - Term Land Use Planning and Housing] Resources – Internal Staff Time)
• Complete ordinance updates addressing rent modifications for Below Market Rate (BMR) Housing [Council Priority – Long - Term Land Use Planning and Housing] Resources – Internal Staff Time)
• In Coordination with the Recreation and Community Services (RCS) Department as well as community groups and potential outside service providers, pursue the establishment of cold weather shelter in Campbell. Additionally, collaborate with the County and o ther West Valley cities in establishing a regional homeless shelter.

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) [Council Priority – Long - Term Land Use Planning and Housing] Resources – Internal Staff Time and TBD Outside Consulting)
• Begin intital work on establishing a potential Housing Commission [Council Priority – Long - Term Land Use Planning and Housing] Resources – Internal Staff Time) Finance
• In coordination with an outside consultant, the City Manager’s Office, all members of the Executive Team, and other key stakeholders, explore potential new revenue sources to place on the 2024 General Election ballot LEAD DEPARTMENTS – City Manager’s Office and Finance Department [Council Priority – Financial Stability] (Resources – Internal Staff Time and Outside Consultants at approx. $100,000) • Develop strategies to systematically address Unfunded Pension Liabilities in the short- and long-term [Council Priority – Financial Stability] (Resources – Internal Staff Time and Outside Consultants at approx. $17,000 annually) • Using results of completed facilities condition assessment, collaborate with the Public Works and Recreation and Community Services Departments to prepare capital projects to address Citywide deferred maintenance issues in future Capital Improvement Plans (CIP) LEAD DEPARTMENT - Public Works [Council Priority – Financial Stability] (Resources – Internal Staff Time and Outside Consultants in Public Works)
• In coordination with the Community Development Department, City Council, key stakeholders, and outside consultants (as needed), develop funding strategies and options to support Housing Element programs. LEAD DEPARTMENTS - Community Development and Finance [Council Priorities –Long-Term and Land Use Planning and Housing and Financial Stability] (Resources – Internal Staff Time and Outside Consultants in Community Development)
Legal Services
• Assist with development of potential ballot measures for November 2024 ballot; and prepare impartial analysis for ballot [Council Priority – Financial Stability] (Resources – Internal Staff Time and Outside Consultants at approx. $100,000) • Review Community Development Department’s updates to the City’s Multifamily Residential Development and Design Standards (MFDDS) – [Council Priority – Long Term Land Use Planning and Housing] (Resources – Internal City Attorney Time) • Review Community Development Department’s ordinance and policy updates to implement procedures for pass through funded technical studies [Operational Need] (Resources – Internal City Attorney Time)
• Review Community Development Department’s updates to the City’s Historic Preservation Ordinance and Mills Act Program [Council Priority – Long Term Land Use Planning and Housing] (Resources – Internal City Attorney Time) • Work with Community Development and Public Works to finish update of Subdivision Ordinance [Council Priority - Long-Term Land Use Planning and Housing] (Resources – Internal City Attorney Time)
• Provide support on implementation of Measure O [Council Priority – Measure O] (Resources – Internal City Attorney Time)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) • Assist City Clerk with revised records retention schedule and procedures [Operational Need] (Resources – Internal City Attorney Time) • Assist Community Development with/review Citywide Climate Action Plan [Council Priority – Sustainability] (Resources – Internal City Attorney Time) • Review Hamilton Avenue Precise Plan [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal City Attorney Time) • Review Community Development Department’s annual code updates to comply with new state laws and implement streamlining to meet the city’s economic development goals [Operational Need] (Resources – Internal City Attorney Time) • Review Community Development Department ordinances to implement State Laws (SB 10 & 684) addressing missing middle housing [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal City Attorney Time) • Review Community Development Department’s ordinance updates addressing rent modifications for Below Market Rate Housing [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal City Attorney Time) Police
• Implement new technologies including Axon Computer Aided Dispatch (CAD) system, Real Time Information Center (RTIC), and Next Generation 911 [Council Priority – Community Health and Safety] (Resources – Internal Staff Time and Grant Funded Expenditures)
• Recruit and hire qualified candidates for vacancies and upcoming retirements [Council Priority – Community Health and Safety] (Resources – Internal Staff Time and Outside Contractor at approx. $200,000 annually) Public Works
Administration
• Manage Measure O capital projects; overseeing construction contracts and associated project budgets [Council Priority - Measure O Implementation] (Resources – Internal Staff Time funded with Measure O Resources) • Represent Campbell in long range regional transportation planning efforts - Envision Silicon Valley and Plan Bay Area 2050 process [Council Priority - Long-Term Land Use Planning and Housing] (Resources – Internal Staff Time) Transportation Engineering
• Review and consider revisions to the City’s Traffic Calming Policy [Council Priority – Community Health and Safety] (Resources – Internal Staff Time) • Manage, design, and implement traffic calming improvements [Council Priority – Community Health and Safety] (Resources – Internal Staff Time) • Manage, design, and implement bicycle and pedestrian enhancements and safety improvements [Council Priority - Long-Term Land Use Planning and Housing ] (Resources – Internal Staff Time and Outside Grant Funded Expenditures)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) • Manage Safe Routes to School Maps Project [Council Priority – Community Health and Safety] (Resources – Internal Staff Time and Outside Grant Funded Expenditures)
• Manage Hamilton Avenue/State Route 17 Bicycle Overcrossing Planning Study (tentative, pending VTA scoring committee results) and revisit priority and resource allocation [Council Priority - Long-Term Land Use Planning and Housing] (Resources – Internal Staff Time and Outside Grant Funded Expenditures) • Apply for and manage grant funds as provided through VTA and other granting agencies [Council Priority – Financial Stability] (Resources – Internal Staff Time) Engineering
• Implement the Annual Street Maintenance Program [Council Priority – Financial Stability] (Resources – Internal Staff Time and Outside Contractors Funded by CIPR and External Agencies)
• Manage and implement all other approved Capital Improvement Projects [Operational Need] (Resources – Internal Staff Time)
• Continue update of City Standard Details and Technical Specifications for Public Works Construction [Operational Need] (Resources – Internal Staff Time) • Review applications and issue permits for wireless facilities/small -cell wireless projects in the public right -of-way [Operational Need] (Resources – Internal Staff Time)
• Review encroachment permit applications and issue permits for construction within the public right-of-way [Operational Need] (Resources – Internal Staff Time) • Perform field inspections of construction operations within the public right -of-way [Operational Need] (Resources – Internal Staff Time)
• Maintain streetlight inventory and assist with street lighting needs for projects [CIP Support] (Resources – Internal Staff Time)
• In coordination with the Recreation and Community Services Departments, prepare a Citywide Parks and Recreation Facilities Master Plan [Council Priority – Long - Term Land Use Planning and Housing] (Resources – Internal Staff Time) Land Development
• Review development proposals for compliance with the reissued Storm Water Municipal Regional Permit (MRP 3.0), including necessary updates to the Green Infrastructure Plan [Council Priority – Long-Term Land Use Planning and Housing] (Resources – Internal Staff Time)
• Review and approve land development projects for compliance with City policies adopted plans, and City standard plans and details, and identify associated improvements on public rights -of-way [Operational Need] (Resources – Internal Staff Time)
• In coordination with the Community Development Department, facilitate construction of any remaining Semi -permanent Parklets in Downtown Campbell [Operational Need] (Resources – Internal Staff Time)
Maintenance

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) • Complete a comprehensive Inventory and Condition Assessment of all City Facilities [Council Priority - Financial Stability] (Resources – Internal Staff Time and Outside Contractors Funded by CIPR)
• Complete all approved Capital Improvement Projects, including Campbell Community Center and the Sunnyoaks Fire Station Roofing projects [Council Priority – Sustainability] (Resources – Internal Staff Time)
• Complete preventative maintenance work in Maintenance Zones 10 & 11, including the removal and replacement of displaced sidewalks, curb and gutter and structural tree trimming [Council Priority – Community Health and Safety] • Complete installation of new Tesco Battery Backup Systems in all 43 signalized intersections [Council Priority – Community Health and Safety] • Implement water conservation strategies including turf and irrigation controller upgrades for the Community Center and sports fields [Council Priority – Sustainability] (Resources – Internal Staff Time)
• Support volunteer events such as Keep America Beautiful and Campbell Garage Sale [Operational Need] (Resources – Internal Staff Time)
• Complete the acquisition and installation of a new Traffic Signal and Lighting Modular Building at the Service Center [CIP Support] (Resources – Internal Staff Time) • Complete all approved vehicle and equipment purchases and lease acquisitions as budgeted [Operational Need] (Resources – Internal Staff Time) • Complete replacement of three diesel -powered heavy -duty trucks with gasoline powered vehicles to meet EPA Tier 4 motor requirements [Operational Need] (Resources – Internal Staff Time)
• Complete asphalt repairs, seal coating, and striping for the Campbell Community Center Parking Lot [Operational Need] (Resources – Internal Staff Time) • Complete Annual Crack Seal Project [Operational Need] (Resources – Internal Staff Time)
• Complete installation of Calsense Irrigation Controllers for John D Morgan Park and Jack Fischer Park [Operational Need] (Resources – Internal Staff Time) • Create a proposed schedule of repairs and replacements for City -owned assets as outlined in the City’s Asset Inventory Report [Council Priority – Financial Stability] (Resources – Internal Staff Time)
• Complete the renovation of the Campbell Park pedestrian bridge [Council Priority – Sustainability] (Resources – Internal Staff Time)
• Complete repair and replacement of a storm drain outfall in Los Gatos Creek at the County Park [Council Priority – Community Health & Safety] (Resources – Internal Staff Time)
Environmental
• Provide solid waste, stormwater, and water conservation expertise for the Campbell Climate Action Adaptation Plan [Council Priority - Sustainability] (Resources – Internal Staff Time)
• Coordinate and support efforts to implement the requirements of SB 1383 [Council Priority - Sustainability] (Resources – Internal Staff Time) • Coordinate and support the solid waste hauler rebranding effort [Council Priority - Sustainability] (Resources – Internal Staff Time)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets) • Provide support to the Solid Waste Management Authority when implementing the new solid waste hauler agreement and associated requirements [Council Priority - Sustainability] (Resources – Internal Staff Time)
• Coordinate and support the Planning and Building Divisions with trash enclosure plan reviews, project waste management plans, and the implementation of the newly updated construction and demolition program [Council Priority - Sustainability] (Resources – Internal Staff Time)
• Provide support to the West Valley Clean Water Authority when implementing the regional stormwater MRP 3.0 [Council Priority - Sustainability] (Resources – Internal Staff Time)
• Coordinate and support the West Valley Clean Water Authority and Campbell Street Division with the installation of full trash capture devices for State Water Board compliance [Council Priority - Sustainability] (Resources – Internal Staff Time) Measure O – City Manager’s Office
• Complete construction phase for both Police and Library buildings [Council Priority - Measure O] (Resources – Internal Staff Time funded with Measure O Resources) • Manage the construction contracts for both the Library and Police Building projects, including change order management and contract administration [Council Priority - Measure O] (Resources – Internal Staff Time)
• Implement Civic Center site staging plan to accommodate City Hall customers and employee parking [Council Priority - Measure O] (Resources – Internal Staff Time) • Provide support to the Citizens’ Oversight Committee [Council Priority - Measure O] (Resources – Internal Staff Time)
Recreation and Community Services
Administration
• In collaboration with Public Works complete Parks and Recreation Master Plan. [Council Priority – Long-Term Land Use Planning and Housing] (Resources – Internal Staff Time and Outside Consultant at approx. $210,000) • Renew Age -Friendly Cities designation with World Health Organization (WHO) [Operational Need] (Resources – Internal Staff Time)
• Explore programming opportunities to expand inclusivity through therapeutic and adaptive recreation programming [Council Priority – Community Health and Safety] (Resources – Internal Staff Time)
101.528 (Museum)
• Increase accessible searchable Museum collection records by 5% [Operational Need] (Resources – Internal Staff Time)

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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2025 Operating & Capital Budgets)

City
Council
Report

TITLE: Authorization to Extend the Existing Master Equity Lease Agreement with Enterprise Fleet Management for the Replacement of City Vehicles and Approve the Issuance of Subsequent Purchase Orders for Their Associated Leasing Costs (Resolution/Roll Call Vote)

RECOMMENDED ACTION

That the City Council adopt a resolution authorizing: 1) an extension of the existing Master Equity Lease Agreement with Enterprise Fleet Management (Enterprise) for the replacement of City vehicles; 2) the issuance of a purchase order with Enterprise, in the amount of $193,000, for FY 2024/25 as programmed in the Public Works - Vehicle and Equipment Maintenance Operating Budget; 3) the issuance of subsequent purchase orders over four (4) additional years, in the total amount of up to $928,000; and 4) the City Manager to execute the individual lease agreements for additional vehicles replaced through Enterprise and as specified in Campbell Municipal Code Section

3.20.100.

BACKGROUND

The Public Works Department – Fleet Maintenance Division maintains approximately 85 vehicles utilized for various citywide operations, including 58 light and heavy -duty vehicles and 27 public safety vehicles (both marked and unmarked). Despite adhering to preventive maintenance schedule s that address the operational and mechanical needs of each vehicle, many of the vehicles incur higher fuel, maintenance, and repair expenses as they age, while their trade-in/surplus values diminish over time. To mitigate the financial impacts of these escalating costs, the City has established the following replacement criteria: 10 years/100,000 miles for all non -safety light-duty vehicles, and 7 years/75,000 miles for all marked and unmarked public safety vehicles. Additionally, other factors such as a vehicle's use, estimated replacement value, and long -term maintenance costs, are also considered when prioritizing the City’s vehicle replacements at each fiscal year as programmed in the in the Public Works – Vehicle and Equipment Maintenance Operating Budget.

Over the last several years, s ignificant price increases across the automotive industry have posed challenges for the City's traditional procurement practice of outright purchasing vehicles to meet the City’s operational needs . In early 2020, staff began researching alternative procurement strategies to alleviate these challenges, address the budgetary constraints, and assist with the development of a timely and cost -efficient Item: 13
Category: NEW BUSINESS
Meeting Date: June 4, 2024
13 Packet Pg. 231
Fleet Vehicle Leasing Page 2 of 6
method to address vehicle replacements. During these efforts, staff began researching alternate procurement methods, including leasing. While discussing these issues with other local public agencies, staff was made aware of several municipal leasing options.

After considering a variety of options, staff selected Enterprise Fleet Management (Enterprise) as the most cost-effective and responsive service provider. The mechanism to lease individual vehicles through Enterprise would first require entering into a Master Equity Lease Agreement. This agreement would then allow the City to enter into specific lease agreements for individual vehicles and would allow for customization to meet the City’s operational needs. While the Master Equity Lease Agreement outlined the program’s general terms of service, the City would be subject only to the terms and conditions as specified in the individual lease agreements executed for each vehicle acquired through the program.

With the program’s Open -Ended Equity Lease option, each vehicle would be leased for a five -year (60-month) term, with no down payment due at signing and a monthly bill activated only upon delivery of the vehicle. Over the course of the five-year lease, the City would accrue equity in each vehicle as payments were made. When the vehicles are returned at the end of their lease, and later sold by Enterprise, that equity would then be available for the City to use on future vehicle purchases and/or leases. Other highlights of the Enterprise program include:

• No mileage restrictions, additional charges for abnormal wear and tear, and early termination penalties/fees.
• The right to retain ownership and equip vehicles with custom aftermarket features.
• Access to newer vehicles with improved fuel efficiency and latest safety features (including hybrid and plug-in electric vehicles).
• Scheduled maintenance services; warranty and re-call notifications/repairs. • Sales support for liquidation of surplus vehicles/parts on secondary market.

Over time, the program would enable the City to generate long -term cost savings by significantly reducing the need for large capital outlay each fiscal year to purchase new replacement vehicles. Simultaneously, the five-year lease terms would allow staff to establish a more proactive fleet replacement schedule, ensuring a more consistent acquisition of vehicles in line with the City's current replacement criteria. It would also guarantee that a higher percentage of the City's fleet vehicles would be covered under their respective manufacturer's warranty, thereby reducing operational maintenance costs. Additionally, the fleet replacement expenses would become more predictable and uniform.

In 2020, the nine vehicles identified for replacement had a combined replacement value of approximately $380,000 (if purchased outright) – a figure that far exceeded the $90,000 in funds available for vehicle replacements as programmed in the Operating Budget for FY 20 20-21. However, using the Enterprise leasing program, the City could replace all nine vehicles for approximately $57,930 in total leasing fees for that first year (FY 2020-21) – a figure that included an amortized amount for the vehicle procurement 13 Packet Pg. 232
Fleet Vehicle Leasing Page 3 of 6
and aftermarket equipment fees. The City would also realize additional cost savings through their reduced maintenance and fueling costs, resulting in a n annual savings of approximately $26,000.

While the City would pay a total of $288,000 in annual leasing fees over the term of the five-year lease, over $90,000 of that was projected to be recaptured through the equity received upon the sale of those vehicles . Combined with the operational savings, this results in a total savings of approximately $210,000 in vehicle acquisition expenses over a five-year period. Based on those figures, the cost to lease all nine vehicles over five years would be significantly less than if the vehicles were purchased outright.

On November 17, 2020, the City Council adopted Resolution No. 12656 (Attachment F), approving a Master Equity Lease Agreement with Enterprise to replace City vehicles over a five -year period, in the amount of $57,930 for FY 20 20-21, and a five -year total not to exceed $289,650. The vehicles replaced through the leasing program were to be designated as surplus equipment and liquidated – with proceeds received from their sales used to augment funding for the City’s vehicle replacement program. With a five - year (60 -month) lease term, vehicles leased during year one (FY 2021/22) would be returned five years later ( in FY 2026/27 ), while additional replacement vehicles leased over subsequent years would be returned at the end of their respective five -year terms.

Staff would also work with Enterprise to ensure that the equity received from the re -sale (equity) of th ese vehicles is applied to future purchases or leases in a manner consistent with the City’s procurement process.

During that initial five-year period, the City would have the option to lease additional replacement vehicles from Enterprise over subsequent years. At that time, staff would evaluate the progress and actual cost savings of the leasing program to make an informed decision before proceeding with or proposing additional acquisitions.

DISCUSSION

Since the initial City Council approval in 2020, Public Works staff has used the Master Equity Lease Agreement to implement vehicle replacement s consistent with Enterprise’s five -year lease terms and consistent with the amount of fund ing programmed in the Vehicle and Equipment Maintenance Operating Budget each fiscal year. Entering into FY 2024/25, the City will have 23 vehicles under lease through Enterprise ( Attachment C). As of May 2024, the City’s annual leasing costs reflects those payments issued to date for the 18 vehicles currently under lease through FY 2023/24, while the City will begin issuing payments for the five remaining vehicles upon their delivery in FY 2024/25.

Based on the payments issued for the 18 vehicles currently under lease, the City will reach its previous Council-authorized five-year total of $289,650 approximately two years ahead of schedule. When the five additional (previously ordered) replacement vehicles are delivered in FY2024-25, the City’s annual leasing costs will increase to 13 Packet Pg. 233
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approximately $193,000. In FY 2025/26, the leasing costs are projected to reach $300,000 as five additional vehicles will be replaced as well – resulting in a total of 28 vehicles under lease by the end of the program’s fifth year.

Although these additional vehicle leases will increase the City’s annual costs, they are necessary to mitigate the increasing repair and maintenance expenses of the vehicles they replace in the City’s current fleet. Additionally, the leasing program still remains a feasible option considering the combined costs for the 23 leases acquired to date ($193,000) is still significantly less than their combined replacement value of approximately $1.12M (if purchased outright).

After leasing expenditures peak in FY 2025/26 , they are projected to decrease the following year (FY 2026/27) as that will mark the beginning of the City’s cost -recovery phase – when the City will begin receiving the equity back for vehicles returned from leases. It is anticipated that the City will receive approximately $120, 000 (up from the original projection of $90,000) in combined equity upon the re -sale of the nine replacement vehicles acquired during the first year of the program (FY 2021/22). As such, the City can opt to receive that equity as a lump -sum payment, which can then be applied towards current or future leasing expenses. With both options available at the City’s discretion, this will provide additional flexibility pending the City’s vehicle replacement needs at that time.

For years beyond FY 2026/27, the same principle applies. As five -year leases come to an end, the City will return previously leased vehicles to Enterprise. Staff recommends applying these funds towards the acquisition of additional replacement vehicles which would result in more predictable cost projections.

Based on that recommendation, staff has prepared a fleet replacement schedule to include the vehicles being returned to the leasing program, and those scheduled for replacement from the City’s current inventory ( Attachment D). With equity to be applied towards current and future leasing expenditures, the City’s annual leasing costs over the next five years are projected as follows:

Fiscal Year Est. Annual Leasing Costs
(for all vehicles being leased through that FY)
FY 2024/2025 $193,000
FY 2025/2026 $300,000
FY 2026/2027 $150,000
FY 2027/2028 $120,000
FY 2028/2029 $165,000
Total Costs Paid Over 5 Years: $928,000

Since the implementation of the leasing program , reduced maintenance , fueling, and repair costs are generating approximately $70,000 in annual cost-savings in the Vehicle 13 Packet Pg. 234
Fleet Vehicle Leasing Page 5 of 6
and Equipment Maintenance Operating Budget . Additionally, the Fleet Mechanic Supervisor position has been held vacant over the last two fiscal years, generating total savings of approximately $260,000 . Staff expects that position to remain vacant for at least the first half of FY 2024/25 as reorganization options are considered . In the meantime, the funds accrued through this vacancy (approximately $130,000 annually) will be available to use on other program expenditures, including the City’s vehicle procurement and maintenance costs , if needed . Combined with the budget savings resulting from reduced fueling , maintenance, and repair costs, these savings will generate an additional $20 0,000 in funds that can be applied to the City’s annual leasing costs in FY2024/25 and FY 2025/26.

NEXT STEPS

The Master Equity Lease Agreement with Enterprise has remained a feasible option for the City’s vehicle procurement needs and the implementation of a timely and cost - effective vehicle leasing program. As such, staff is requesting that the City Council authorize an extension of the existing Master Equity Lease Agreement with Enterprise for the acquisition of additional replacement vehicles and to facilitate the City’s application of the equity to be received during that cost-recovery phase.

Staff is also requesting Council’s authorization for the issuance of a purchase order, in the amount of $193,000, for the City’s leasing costs to be incurred in FY 2024/25, consistent with the proposed Operating Budget for FY 2024/25. At the same time, authorization will also be required for the issuance of additional purchase orders over the next four years, as described in the table above , for a five -year total of up to $928,000.

To ensure the timely replacement of City vehicles, staff is requesting that the City Council authorize the City Manager to execute the individual lease agreements for those vehicles acquired through Enterprise and as specified in Campbell Municipal Code Section 3.20.100.

FISCAL IMPACT

This action will have a fiscal impact of $193,000 on the Public Works – Vehicle and Equipment Maintenance Operating Budget (750.641.8443) for FY 2024/25. However, that amount has been programmed in the proposed Operating Budget for FY 2024/25 and sufficient funds will be available, if approved, in July 2024.

Fiscal impacts as projected over the subsequent four years are as follows: $300,000 (FY 2025/26), $150,000 (FY 2026/27), $120,000 (FY 2027/28), and $165,000 (FY 2028/29). However, those figures may be refined upon the actual equity received when vehicles are returned/re-sold at the end of their respective leases.

The leasing program has also resulted in reduced maintenance , fueling, and repair 13 Packet Pg. 235
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costs (approximately $75,000 annually) which have been reflected in the proposed Operating Budget. With the Fleet Mechanic Supervisor position expected to remain vacant for at least the next six months, additional savings will accrue in the program over that same period.

ALTERNATIVES

1. Discontinue replacing additional vehicles through the existing Master Lease Agreement; allow current vehicle leases to continue and replace through outright purchases as individual leases expire.

2. Discontinue the City’s current Master Lease Agreement and return all vehicles to Enterprise; proceed with purchasing new vehicles outright for future replacements.

Prepared by:

Carina Shattuck, Administrative Analyst I

Reviewed by:

Todd Capurso, Director of Public Works

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Resolution
b. Amendment to the Enterprise Master Equity Lease Agreement c. Replacement Vehicles Currently Under Lease with Enterprise (Years 1 - 4) d. Proposed Fleet Replacement Schedule
e. Signed Enterprise Master Equity Lease Agreement - Dated 11.25.2020 f. Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020
13 Packet Pg. 236

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AUTHORIZING: 1) AN

EXTENSION OF THE EXISTING MASTER EQUITY LEASE AGREEMENT WITH ENTERPRISE FLEET MANAGEMENT; 2) THE ISSUANCE OF A PURCHASE ORDER WITH ENTERPRISE, IN THE AMOUNT OF $193,000, FOR LEASING EXPENDITURES IN FY 2024/25, AS PROGRAMMED IN THE PUBLIC WORKS – VEHICLE AND EQUIPMENT MAINTENANCE OPERATING BUDGET; 3) THE ISSUANCE OF SUBSEQUENT PURCHASE ORDERS OVER FOUR ADDITIONAL YEARS, IN THE TOTAL AMOUNT OF UP TO $928,000, FOR LEASING COSTS TO BE INCURRED EACH YEAR DURING THE FIVE-YEAR PERIOD ; AND 4) THE CITY

MANAGER TO EXECUTE THE INDIVIDUAL LEASE AGREEMENTS FOR ADDITIONAL

VEHICLES REPLACED THROUGH ENTERPRISE AND AS SPECIFIED IN CAMPBELL MUNICIPAL CODE SECTION 3.20.100

WHEREAS, the Public Works Department – Fleet Division maintains approximately 85 vehicles utilized for various citywide operations; and

WHEREAS, significant price increases across the automotive industry have posed challenges for the City's traditional procurement practice of purchasing fleet vehicles outright for its inventory expansion and replacement needs; and

WHEREAS, in 2020, staff proposed to enter into a Master Equity Lease Agreement with Enterprise Fleet Management Inc. (Enterprise) t o facilitate access to newer fleet vehicles by way of various leasing options; and

WHEREAS, each vehicle could be leased over a five -year (60-month) term and would accrue a substantial residual value (equity) that would then be available for the City to use on current (or future) vehicle purchases and/or leases upon their re-sale; and

WHEREAS, on November 17, 2020, the City Council adopted Resolution No. 12656 , approving a Master Equity Lease Agreement with Enterprise to replace the City’s aging fleet vehicles over a five- year period, in the amount of $57,930 for FY 2020/21, and a five-year total not to exceed $289,650; and

WHEREAS, as of May 2024, the City has issued monthly lease payments for 18 vehicles replaced through the program’s third year (FY 2023/24) , which has exceeded the previous five -year total ($289,650) approved by the Council in 2020; and

WHEREAS, upon delivery of the five replacement vehicles , the City’s annual leasing costs will increase to approximately $193,000 for FY 2024/25, and to $300,000 in FY 2025/26; and

WHEREAS, a significant portion of these annual leasing costs will be offset by their reduced fueling and maintenance expenses (approximately $70,000 annually) and the vacancy of the Fleet Mechanic Supervisor position whose funds will remain programmed in the Operating Budget while the position is re-evaluated; and

WHEREAS, after leasing expenditures peak in FY 2025/26, the following year, FY 2026/27, will mark the beginning of the City’s cost -recovery phase when approximately $120, 000 in equity will be received that year when the nine vehicles leased from FY 2 021/22 are returned and re -sold by Enterprise; and

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Attachment: Resolution (Fleet Vehicle Leasing)

WHEREAS, with more equity to be received over subsequent years, staff recommends applying those funds to supplement the City’s current leases and the acquisition of additional replacement vehicles; and

WHEREAS, based on staff’s proposed replacement schedule, and the equity to be applied over future years, the City’s annual leasing costs for the next five (5) years are estimated as follows:
$193,000 (FY 2024/25), $300,000 (FY 2025/26), $150,000 (FY 2026/27), $120,000 (FY 2027/28), and $165,000 (FY 2028/29); and

WHEREAS, staff recommends an extension of the existing Master Equity Lease Agreement with Enterprise for the acquisition of additional replacement vehicles and to facilitate the City’s application of the equity to be received during that cost-recovery phase; and

WHEREAS, staff requests that the City Council also authorize the issuance of a purchase order, in the amount of $193,000, for those costs incurred during FY 2024/25, and the subsequent issuance of additional purchase orders over the next five years, for a total of up to $928,000; and

WHEREAS, sufficient funds in the amount of $193,000 will be available for those costs in FY 2024/25 upon the approval of the Proposed Operating Budget for FY 2024/25; and

WHEREAS, staff will also program the amounts needed for the four additional years into the City’s Operating Budget to ensure sufficient funds are available for the City’s annual leasing costs and related expenditures.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Campbell hereby authorize: 1) an extension of the existing Master Equity Lease Agreement with Enterprise Fleet Management for the replacement of City vehicles; 2) the issuance of a purchase order with Enterprise, in the amount of $193,000, for all leasing expenditures incurred through FY 2024/25, and as programmed in the Public Works – Vehicle and Equipment Maintenance Operating Budget for FY 2024/2025; 3) the issuance of subsequent purchase orders over four additional years, in the total amount of up to $ 928,000, for leasing costs to b e incurred each year during that f ive-year period; and 4) the City Manager to execute the individual lease agreements for additional vehicles replaced through Enterprise and as specified in Campbell Municipal Code Section 3.20.100.

PASSED AND ADOPTED this 4th day of June, 2024, by the following roll call vote:

AYES: Council Members:

NOES: Council Members:

ABSENT: Council Members:

APPROVED:
_________________________________
Susan M. Landry, Mayor

ATTEST:
___________________________
Andrea Sanders, City Clerk

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Attachment: Resolution (Fleet Vehicle Leasing)

AMENDMENT TO MASTER EQUITY LEASE AGREEMENT
THIS AMENDMENT (“Amendment”) dated this ____ day of ___________, 2024 is attached to, and made a part of, the MASTER EQUITY LEASE AGREEMENT entered into on the 25th day of November 2020 (“Agreement”) by and between Enterprise FM Trust, a Delaware statutory trust (“Lessor”) and City of Campbell ("Lessee"). This Amendment is made for good and valuable consideration, the receipt of which is hereby acknowledged by the parties.

Section 9(c) of the Master Equity Lease Agreement is amended to read as follows:

Except in the event of the negligence or willful misconduct of Servicer or any other agent of Lessor, none of Lessor, Servicer or any other agent of Lessor will be liable to Lessee for any liability, claim, loss, damage (direct, incidental or consequential) or expense of any kind or nature, caused directly or indirectly, by any Vehicle or any inadequacy of any Vehicle for any purpose or any defect (latent or patent) in any Vehicle or the use or maintenance of any Vehicle or any repair, servicing or adjustment of or to any Vehicle, or any delay in providing or failure to provide any Vehicle, or any interruption or loss of service or use of any Vehicle, or any loss of business or any damage whatsoever and however caused. In addition, none of Lessor, Servicer or any other agent of Lessor will have any liability to Lessee under this Agreement or under any order authorization form executed by Lessee if Lessor is unable to locate or purchase a Vehicle ordered by Lessee or for any delay in delivery of any Vehicle ordered by Lessee.

Section 10 of the Master Equity Lease Agreement is amended to read as follows:

Lessee assumes and agrees to bear the entire risk of loss of, theft of, damage to or destruction of any Vehicle from any cause whatsoever (“Casualty Occurrence”), except for such loss, damage or destruction caused by the negligence or intentional misconduct of Servicer or any other agent of Lessor. In the event of a Casualty Occurrence to a Vehicle, Lessee shall give Lessor prompt notice of the Casualty Occurrence and thereafter will place the applicable Vehicle in good repair, condition and working order; provided, however, that if the applicable Vehicle is determined by Lessor to be lost, stolen, destroyed or damaged beyond repair (a “Totaled Vehicle”), Lessee agrees to pay Lessor no later than the date thirty (30) days after the date of the Casualty Occurrence the amounts owed under Sections 3(b) and 3(c) with respect to such Totaled Vehicle. Upon such payment, this Agreement will terminate with respect to such Totaled Vehicle.

Section 12 of the Master Equity Lease Agreement is amended to read as follows:

Except in the event of the negligence or willful misconduct of Servicer or any other agent of Lessor, to the extent permitted by state law, Lessee agrees to defend and indemnify Lessor, Servicer, any other agent of Lessor and their respective successors and assigns from and against any and all losses, damages, liabilities, suits, claims, demands, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) which Lessor, Servicer, any other agent of Lessor or any of their respective successors or assigns may incur by reason of Lessee’s breach or violation of, or failure to observe or perform, any term, provision or covenant of this Agreement, or as a result of any loss, damage, theft or destruction of any Vehicle or related to or arising out of or in connection with the use, operation or condition of any Vehicle. The provisions of this Section 12 shall survive any expiration or termination of this Agreement. Nothing herein shall be deemed to affect the rights, privileges, and immunities of Lessee and the foregoing indemnity provision is not intended to be a waiver of any sovereign immunity afforded to Lessee pursuant to the law.

Section 14, second paragraph of the Master Equity Lease Agreement is amended to read as follows:

Upon the occurrence of any Event of Default, Lessor, with written notice to Lessee, will have the right to exercis e concurrently or separately (and without any election of remedies being deemed made), the following remedies: (a) Lessor may demand and receive immediate possession of any or all of the Vehicles from Lessee, without releasing Lessee from its obligations under this Agreement; if Lessee fails to surrender possession of the Vehicles to Lessor on default (or termination or expiration of the Term), Lessor, Servicer, any other agent of Lessor and any of Lessor’s independent contractors shall have the right to enter upon any premises where the Vehicles may be located and to remove and repossess the Vehicles; (b) Lessor may enforce performance by Lessee of its obligations under this Agreement; (c) Lessor may recover damages and expenses sustained by Lessor, Servicer, any other agent of Lessor or any of their respective successors or assigns by reason of Lessee's default including, to the extent permitted by applicable law, all costs and expenses, including court costs and reasonable attorneys' fees and expenses, incurred by Lessor, Servicer, any other agent of Lessor or any of their respective successors or assigns in attempting or

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Attachment: Amendment to the Enterprise Master Equity Lease Agreement (Fleet Vehicle Leasing)

effecting enforcement of Lessor’s righ ts under this Agreement (whether or not litigation is commenced) and/or in connection with bankrupt cy or insolvency proceedings; (d) upon written notice to Lessee, Lessor may termi nate Lessee's rights under this Agreement; (e) with respect to each Vehicle, Lessor may recover from Lessee all amounts owed by Lessee under Sections 3(b) and 3( c) of this Agr eement (and, if Lessor does not recover possession of a Vehicle, (i) the estimate d wholesale value of such Vehicle for purposes of Section 3(c) shall be deem ed to be $0.00 and (ii) the calculations described in the first two sentences of Sect ion 3(c) shall be made without giving effect to clause (ii) in each such sentence); and/or (f) Lessor may exercise any other right or remedy which may be available to Lessor under the Uniform Commercial Code, any other applicable law or in equity. A termin ation of this Agreement shall occur only upon written notice by Lessor to Lessee. Any terminat ion shall not affect Lessee's obligation to pay all amounts due for periods prior to the effective date of such termination or Lessee's obligation to pay any indemnities under this Agreement. All remedies of Lessor under this Agreement or at law or in equity are cumulative.

Section 15, first paragraph of the Master Equity Lease Agreement is amended to read as follows:

Lessor may from time to time assign, pledge or transfer this Agreement and /or any or all of its rights and obligations under this Agr eement to any person o r entity. Lessor will provide written notification in the event of a non -financial assignment. Lessee agrees, upon notice of any such assignme nt, pledge or transfer of any a mounts due or to become due to Lessor under this Agreement to pay all such amounts to such assignee, pledgee or transferee. Any such assignee, pledgee or transferee o f any rights or obligations of Lessor under this Agreement will have all of the rights and obligations that have been assigned to it. Lessee’s rights and interest in and to the Vehicles are and will continue at all times to be subjec t and subordinate in a ll respects to any assignment, pledge or transfer now or hereafter executed by Lessor with or in favor of any such assignee, pledgee or transferee, provided that Lessee shall have the right of quiet enjoyment of the Vehicles so long a s no Event of Default under this Agreement has occurred and is continuing. Lesse e acknowledges and agrees that the rights of any assignee, pledgee or transferee in and to any amounts payable by the Lessee under any provisions of this Agreement shall be abs olute and unconditional and shall not be subject to any abatement whatsoever, or to any defense, setoff, counterclaim or recoupment whatsoever, whether by reason of any damage to or loss or destruction of any Vehicle or by reason of any defect in or failur e of title of the Less or or interruption from whatsoever cause in the use, opera tion or possession of any Vehic le, or by reason of any indebtedness or liability howsoever and whenever arising of the Lessor or any of its affiliates to the Lessee or to any other person or entity, or for any other reason.

Section 17 of the Master Equity Lease Agreement is amended to read as follows:

Subject to the provisions of Section 15, this Agreement will be binding upon Lessee and its heirs, executors, personal representatives, successors and assigns, and will inure to the ben efit of Lessor, Servic er, any other agent of Lessor and their respective successors and assigns. This Agreement will be governed by and construed in accordance with the substantive laws of the State of California (determined without reference to conflict of law principles).

All references in the A greement and in the various Schedules and addenda to the Agreement a nd any other references of similar import shall henceforth mean the Agreement as amended by this Am endment. Except to the extent specifically amended by this Amendment, all of the terms, p rovisions, conditions, covenants, representations and warranties contained in the Agreement shall be and remain in full force and effect and the same are hereby ratified and confirmed.

IN WITNESS WHEREOF, Lessor and Les see have execute d this Amendment to Master Equity Lease Agreement as of the day and year first above written.

City of Campbell (Lessee) Enterprise FM Trust (Lessor) By: Enterprise Fleet Management, Inc., its attorney in fact

By By

Title: Title:

Date Signed:__________________, _______ Date Signed:_______________________, _______

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Attachment: Amendment to the Enterprise Master Equity Lease Agreement (Fleet Vehicle Leasing) Replacement Vehicles Currently Under Lease with Enterprise (Years 1 – 4) Year
(in current
Lease Cycle)
# Vehicle Est. Purchase Value
(if purchased outright at time of lease)
Fiscal Year
Lease Start
Months Left
on Lease
(as of May 2024)
Est. Trade In (Equity) Value at End of Lease
1 2021 Toyota Prius LE H/Back $28,000 21/22 24 $11,200.00 2 2021 Toyota Prius LE H/Back $28,000 21/22 24 $11,200.00 3 2021 Ford Ranger Supercab $27,000 21/22 24 $10,800.00 4 2021 Ford Ranger Supercab $27,000 21/22 25 $10,800.00 5 2021 Ford F-250 Supercab $45,000 21/22 25 $18,000.00
6 2021 Nissan Altima 4DR $28,000 21/22 25 $11,200.00
7 2021 Toyota Highlander $50,000 21/22 25 $12,500.00
8 2021 Ford F-250 Supercab $45,000 21/22 26 $18,000.00
9 2021 Chevy Colorado 4X4 $41,000 21/22 28 $16,400.00
10 2022 Ford Escape Se Hybrid $38,000 22/23 34 $15,200.00 11 2022 Subaru Ascent $55,000 22/23 39 $22,000.00
12 2022 Dodge Durango Pursuit $58,000 22/23 41 $23,000.00 13 2022 Ford Explorer $64,000 22/23 43 $25,600.00
14 2022 Ford Ranger XL Supercab $33,000 22/23 45 $13,200.00 15 2022 Ford Ranger XL Supercab $33,000 22/23 45 $13,200.00 16 2022 Ram 1500 Supercab $55,000 22/23 46 $22,000.00
17 2024 Ford F-250 Utility Bed $68,000 23/24 57 $27,200.00 18 2023 Chevy Tahoe $87,000 23/24 59 $34,800.00
19 2024 Ford F-350 Extended Cab $63,000 24/25 60 $25,200.00 20 2024 Ford F-350 Extended Cab $63,000 24/25 60 $25,200.00 21 2024 Ford F-250 Utility Bed $68,000 24/25 60 $27,200.00 22 2024 Honda Odessey $45,000 24/25 60 $18,000.00
23 2024 Ford F-350 Utility Bed $63,000 24/25 60 $25,200.00 4 (vehicles to be received
June/July 2024)
3 2
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Attachment: Replacement Vehicles Currently Under Lease with Enterprise (Years 1 - 4) (Fleet Vehicle Proposed Fleet Replacement Schedule

FY25/26 (End of Current Lease Cycle)
# Unit Number Year Make Model Mileage Dept Replacement Type 1 2089 2009 Ford F-250 42,227 PW Maint Light Duty Truck 2 2090 2009 Ford F-250 80,673 PW Maint Light Duty Truck 3 2091 2010 Chevy Silverado 71,917 PW Maint Light Duty Truck 4 2094 2014 Ford F-150 38,815 PW Maint Light Duty Truck 5 2095 2014 Ford F-150 71,232 PW Maint Light Duty Truck

FY26/27
# Unit Number Year Make Model Mileage Dept Replacement Type 1 1041 2021 Toyota Prius Lease Return PD SUV/Sedan
2 2104 2021 Toyota Prius Lease Return PW Maint SUV/Sedan 3 2105 2021 Ford Ranger Lease Return PW Maint Light Duty Truck 4 2106 2021 Ford F-250 Super Cab Lease Return PW Maint Light Duty Truck 5 2107 2021 Ford Ranger Lease Return PW Maint Light Duty Truck 6 2108 2021 Ford F-250 Super Cab Lease Return PW Maint Light Duty Truck 7 2109 2021 Chevy Colorado Lease Return PD Light Duty Truck 8 1264 2021 Nissan Altima Lease Return PD SUV/Sedan
9 1265 2021 Toyota Highlander Lease Return PD SUV/Sedan 10 1257 2016 Nissan Maxima 65,159 PD SUV/Sedan
11 1258 2016 Honda Odyssey 80,563 PD SUV/Sedan

FY27/28
# Unit Number Year Make Model Mileage / Status Dept Replacement Type 1 1039 2022 Ford Escape Lease Return PD SUV/Sedan
2 1266 2022 Subaru Ascent Lease Return PD SUV/Sedan
3 1267 2022 Dodge Durango Lease Return PD SUV/Sedan
4 2085 2004 Ford F-250 71,470 PW Light Duty Truck
5 2088 2008 Ford F-250 48,603 PW Light Duty Truck

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Attachment: Proposed Fleet Replacement Schedule (Fleet Vehicle Leasing)

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Attachment: Signed Enterprise Master Equity Lease Agreement - Dated 11.25.2020 (Fleet Vehicle Leasing)

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Attachment: Signed Enterprise Master Equity Lease Agreement - Dated 11.25.2020 (Fleet Vehicle Leasing)

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Attachment: Signed Enterprise Master Equity Lease Agreement - Dated 11.25.2020 (Fleet Vehicle Leasing)

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Attachment: Signed Enterprise Master Equity Lease Agreement - Dated 11.25.2020 (Fleet Vehicle Leasing)

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Attachment: Signed Enterprise Master Equity Lease Agreement - Dated 11.25.2020 (Fleet Vehicle Leasing)

City
Council
Report

TITLE: Master Equity Lease Agreement with Enterprise Fleet Management (Resolution/Roll Call Vote)

RECOMMENDED ACTION

Adopt a Resolution approving a Master Equity Lease Agreement with Enterprise Fleet Management through a cooperative procurement contract, to replace aging city fleet vehicles for an annual amount of $57,568 for Fiscal Year 2020 -21 for a total amount not to exceed $287,840 over a five-year period.

BACKGROUND

The Public Works Department oversees the maintenance of over 90 vehicles, which include 62 light and heavy -duty vehicles and 28 marked and unmarked public safety vehicles. The City’s vehicle replacement criteria call for the replacement of non -safety light duty vehicles when a vehicle is 10 years old or exceeds 100,000 miles. Unmarked public safety vehicles have a replacement criteria of 7 years or 75,000 miles. The City set the criteria as older vehicles generally have higher fuel, maintenance, and repair costs, as well as lower trade-in (salvage) value when ultimately replaced. However, due to budgetary constraints, the City does not always replace all vehicles that meet the replacement criteria and has traditionally replaced two to four vehicles per year, thus creating a situation where approximately 78% of the light duty vehicles are over 10 years old, and amongst that percentage, approximately half are close to 20 years or older.

Specifically, for Fiscal Year (FY) 2021 , although 45 vehicles meet the established criteria for replacement, Public Works budgeted for the replacement of four vehicles in the Motor Vehicle Pool Fund (641). Two of those vehicles, Ford Police Interceptor Utility vehicles, were approved for purchase on September 15, 2020 for $143,000. The budget for the remaining two light-duty vehicles to be purchased is $90,000. During the process of researching costs for the replacement of two light duty vehicles, staff learned about the opportunity of partnering with a vendor for vehicle leasing and maintenance services.

While researching alternative strategies to the current procurement practice of purchasing vehicles out right , staff also found various leasing alternatives, many of which are available to government agencies via national purchasing programs.

Item: 6
Category: NEW BUSINESS
Meeting Date: November 17, 2020

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Master Equity Lease Agreement with Enterprise Fleet Management Page 2 of 5 Sourcewell is a national cooperative purchasing program that offers competitively solicited purchasing contracts for products and equipment. Sourcewell issues and distributes RFP’s to vendors nationwide and screens them rigorously. Public agencies can then benefit from this by working with vendors that have been screened and whose pricing has been verified to be competitive. The City of Campbell is a current member of Sourcewell. In 2018, Sourcewell awarded its “Fleet Leasing and Management Services” contract to Enterprise Fleet Management Inc. (Enterprise) under Sourcewell Contract No. 060618-EFM.

The purchasing procedures outlined in the City’s Municipal Code Section 3.20.050 state that purchases of equipment shall be made according to specified bidding procedures.

However, the bidding procedures may be dispensed with when the City Council, by a majority vote, determines that it is in the best interest of the public to dispense with the requirements of Section 3.20.050 , in which case the City Council shall prescribe the appropriate method of purchase.

DISCUSSION

The City and Enterprise initially began discussing the concept of leasing and how it could benefit the City, during the spring of 2020. The discussions led to the formulation of a leasing strategy and replacement program that would allow the City to replace fleet vehicles over a five -year period (Attachment B). Although all vehicle classes and types were considered as candidates for leasing, pool vehicles, light duty trucks, and unmarked public safety vehicles proved to be the better candidates. These vehicle types have a higher projected resale value and require a relatively low amount of after - market equipment when compared to other vehicle types. Staff identified eleven (11) vehicles for potential replacement using this strategy and is recommending the leasing of nine (9) new vehicles through the Enterprise lease program this fiscal year and the permanent removal of two (2) vehicles from the City fleet, thus reducing the total fleet size. Attachment C lists information for the eleven vehicles that would be removed from City service under this proposed agreement. (It should be noted that while the combined replacement value of the eleven vehicles being proposed for removal is approximately $450,000, the cost of the nine replacement vehicles is actually $380,000.) The proposed agreement would not pertain to public safety support vehicles, such as patrol and other marked vehicles. Highlights of the proposed program include:

• No mileage restrictions, no additional charges for abnormal wear and tear, and no early termination penalties.
• The City has all rights of ownership and can equip vehicles with aftermarket (utility bodies, toolboxes, etc.) to meet all operational needs. • Leasing will minimize the amount of large capital outlays each fiscal year necessary for purchasing vehicles.
• Establish a proactive fleet replacement plan to acquire vehicles on a more consistent basis. Frequent replacement ensures a higher percentage of the fleet

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Master Equity Lease Agreement with Enterprise Fleet Management Page 3 of 5 is covered by the manufacturer’s warranty resulting in lower operational maintenance costs; and
• Vehicles with higher fuel efficiency that allow the City to achieve lower fuel costs and the latest safety features which are highly desirable for larger light -duty vehicles.

Entering into an agreement with Enterprise Fleet Management will allow the City to accomplish a number of objectives. The City will be able to level out vehicle procurement costs and thus would be able to establish a more consistent annual budget amount that can be planned for and sustained. Additionally, significant cost savings can be achieved via the City’s partnership with Enterprise for fleet leasing such as reducing the cost of maintenance and fuel by having newer and more fuel -efficient vehicles. (Attachment D is a sample template agreement.)

This agreement also allows the City to reduce its greenhouse gas emissions, by incorporating a combination of hybrid, plug-in hybrid electric and all-electric vehicles into our fleet. It is anticipated that the City will save approximately $11,000 annually on fuel costs by utilizing a cleaner more fuel -efficient and sustainable fleet. Additionally, based on the age and condition of the vehicles being removed from service, it also expected that annual maintenance costs would decrease by approximately $15,000.

Over the term of this agreement, staff will continue to work with Enterprise to monitor the fleet to determine the best time to replace each vehicle. With the purchasing power of Enterprise the City will have lower acquisition costs. Enterprise recommends a life cycle of no more than five years, which is consistent with the time period recommended for this first agreement. In addition to the leasing and maintenance services, Enterprise will sell surplused vehicles in the secondary market for the City instead of the City having to utilize auctions to sell the vehicles, which is a more efficient model in terms of staff and transportation resources.

The agreement is also anticipated to provide the City with substantially higher equity value as compared to current City practices. Enterprise estimates that at the end of the lease agreement, each vehicle will have substantial residual value, also known as equity. This value is estimated to be approximately $91,000 at the end of five years.

Upon the resale of those nine vehicles, those funds would then be available to the City for future vehicle purchases or leases.

The City has the option of increasing the number of leased vehicles from Enterprise in future years. During the first year s of this agreement, staff will evaluate the impacts of the fleet leasing strategy and calculate the actual cost savings to determine whether it is beneficial to increase the number of leased vehicles in future years.

FISCAL IMPACT

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Master Equity Lease Agreement with Enterprise Fleet Management Page 4 of 5 For FY 2021, Public Works has budgeted $90,000 for the replacement of two remaining light-duty vehicles in the Motor Vehicle Pool Fund (641) . Entering into a lease for nine vehicles will have a first year cost of $57,568, saving approximately $32,000 in the current fiscal year . This figure includes an amortized amount for vehicle procurement and aftermarket equipment. Additionally, the City is expected to realize cost savings in maintenance ($15,000 annually) and fuel ($11,000 annually) on an ongoing basis ; thereby resulting in total anticipated savings of $58,000 in FY 2021. Staff will add these savings to mid-year budget adjustments if appropriate at that time.

The total cost to purchase the n ine vehicles identified in this agreement is $380,000 .

Since the City would be paying $288 ,000 over a period of five years and then recapturing $90,000 in equity upon the sale of these vehicles , T he City would save approximately $180,000 in vehicle purchasing costs over the term of the five-year lease, not including maintenance and fuel savings.

Funding for the first year of the agreement will come from the FY 20 21 Public Works Operating budget under Fund 641 , which has $90,000 allocated for light -duty vehicle replacement. Since the first year of the agreement is $57,568 , the balance of the funds ($32,432) would be returned to the Motor Vehicle Pool Fund for future use. The Motor Vehicle Pool fund has sufficient funds to cover the remaining four years of the agreement which will also cost $57,568 per year in annual leasing payments. These payments will be programmed into future Public Works Operating budgets under Fund 641.

In addition, each year, the replaced vehicles would be set aside as surplus equipment and liquidated. Proceeds from the sale of the surplus vehicles would augment funding for the City’s vehicle replacement and maintenance program.

ALTERNATIVES

1. Do not approve the recommendation. The City would proceed with the purchase of the two vehicles as approved in the adopted FY 2020 -21 budget at a cost of approximately $90,000. This alternative would result in the City not replacing the seven additional vehicles identified in the agreement at an estimated value of $400,000.

Prepared by:

Margarita Mendoza, Administrative Analyst

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Master Equity Lease Agreement with Enterprise Fleet Management Page 5 of 5

Approved by:

Brian Loventhal, City Manager

Attachment:
a. Resolution
b. Enterprise Proposal Synopsis - October 2020
c. 20-21 Fleet Replacements
d. Enterprise Sample Master Lease Agreement
e. All Vehicle Quotes

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) RESOLUTION NO. 12656

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

AUTHORIZING AN AGREEMENT WITH ENTERPRISE FLEET MANAGEMENT FOR A

VEHICLE LEASING PROGRAM THROUGH A COOPERATIVE PROCUREMENT CONTRACT

AND DISPENSING WITH BIDDING REQUIREMENTS
WHEREAS, the City' s vehicle replacement criteria call for the replacement of light duty vehicles when the vehicle is 10 years old or exceeds 100, 000 miles; and WHEREAS, over 78% of he City' s light duty vehicels are over 10 years old, and amongst that percentage, nearly half are close to 20 years older; and WHEREAS, the purchasing procedures outlined in the City' s Municipal Code Section

3.20.050 state purchases of supplies, services and equipment shall be by the bidding procedures in that chapter; and
WHEREAS, the bidding procedures of Section 3.20. 050 may be dispensed when the City Council, by a majorityvote, determinesthat it is in the bestinterestof the publicto dispensewith the requirements of Section 3. 20. 050, in which case the City Council shall prescribe the appropriate method of purchase; and
WHEREAS, on April 26, 2018, the National Joint Powers Alliance (" NJPA"), a national cooperative purchasing program that offers competitively solicited purchasing contracts for products and equipment solicited Request for Proposal ( RFP) No. 060618 entitled " Fleet Management Services"; and
WHEREAS, on June 6, 2018, NJPA changed its organization' s name to Sourcewell, and all new and prior agreements the City has entered into with NJPA will continue in effect without impact; and
WHEREAS, on July 24, 2018, Sourcewell awarded Contract No. 060618- EFM to Enterprise Fleet Management, current through July 24, 2022, pursuant to RFP No. 060618; and WHEREAS, the Public Works Department has developed a fleet replacement program, which will utilize leased vehicles pursuant to a cooperative purchase and equity lease program with Enterprise Fleet Management, resulting in maximization of resale value and reduction in maintenance costs of the vehicles; and
WHEREAS, the initial cost of the program through a first year lease with Enterprise Fleet Management is $ 57, 930 and a total amount not to exceed $ 289, 650 over a five- year period.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CAMPBELL authorizes the City Manager to execute a Master Equity Lease Agreement with Enterprise Fleet Management through a cooperative procurement contract, in the amount of 57, 930 for Fiscal Year 2020- 21 and a total not to exceed $ 289, 650, through a cooperative procurement with Sourcewell, formerly NJPA, and to dispense with bidding requirements.

PASSEDANDADOPTEDthis 17thdayof November, 2020bythefollowingroll callvote:

AYES: Councilmembers: Waterman, Bybee; Resnikoff, Gibbons, Landry NOES: Councilmembers: None
ABSENT: Councilmembers: None

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) APPROVED:
ja- a / 7l
Susan M. Landry, ayor
ATTEST:
aviteaomolp
Andrea S ders, Deputy City Clerk
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing)

Fleet Synopsis for City of Campbell
October 28, 2020

Enterprise Fleet Management, Inc.

Enterprise Fleet Management
600 Corporate Park Drive
St. Louis, MO 63105
314-512-5000 Main
314-518-5583 Fax

Jenelle Anderson
Senior Account Executive
2633 Camino Ramon, Suite 400
San Ramon, CA 94583
650-685-6014 Office
651-343-6623 Cell
[email protected]

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Information contained on this page contains matters which are the subject of ongoing negotiations; are confidential and proprietary; and subject to strict restrictions and limitations on use and disclosure. Please refer to Enterprise Fleet Management’s Statements on Confidentiality and Contingency for further detail. Copyright 2015 Enterprise Fleet Management, Inc. All rights reserved.

2 Impact of Partnership

SITUATION
Current fleet age is negatively impacting the overall budget and fleet operations  78% of the light duty fleet is currently 10 years or older  Older vehicles have higher fuel costs, maintenance costs, and tend to be unreliable, causing increased downtime and loss of productivity

OBJECTIVES
Identify an effective vehicle life cycle for 37 of the light duty trucks and sedans that maximizes potential equity at time of resale creating a savings
 Safety of vehicles; older vehicles create safety hazard for Campbell employees, while newer model vehicles have enhanced safety features.
 Shorten the current vehicle life cycle from 20+ years to 5 years  Provide a lower sustainable fleet cost that is predictable year over year  Reduce the overall fuel spend through more fuel-efficient vehicles  Increase employee morale and productivity with newer vehicles  Leverage an open-ended lease to maximize cash flow opportunities and recognize equity

Utilize Sourcewell Contract

 Access to all fleet management services as applicable to the needs of the Agency  Supports the Agency’s need for fleet evaluation on a quarterly basis assessing costs and reviewing best practices

 Provide monthly reporting, tracking, and downloads providing real-time information

RECOMMENDED STARTING PLACE FOR 2020/2021
Lease 9 vehicles to begin partnership
 9 vehicles would be replacing 11 vehicles that were all 10+ years old  Estimated first year cost of 9 vehicles is $57,568, which includes tax and aftermarket costs. The cost to purchase these same vehicles with cash would be $265,000.
 2 of the 9 vehicles will be Toyota Prius Prime which has both electric and hybrid functionality  Annual fuel costs are expected to decrease by $10,000+. Average mpg of 11 vehicles was 10 mpg (which had annual costs of $16,500), new average mpg of 9 vehicles is 26 (which has estimated annual cost of $5,200)  Annual maintenance costs are expected to decrease by $15,000+. Previously m aintenance costs on 11 vehicles were $19,000 annually, new maintenance costs on 9 vehicles are expected to be $3,500 annually.  Total Equity expected on 9 vehicles at the end of 60 months with vehicles having around 25,000 miles on it is $90,000+.

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Information contained on this page contains matters which are the subject of ongoing negotiations; are confidential and proprietary; and subject to strict restrictions and limitations on use and disclosure. Please refer to Enterprise Fleet Management’s Statements on Confidentiality and Contingency for further detail. Copyright 2015 Enterprise Fleet Management, Inc. All rights reserved.

3 Details on 9 vehicles

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Information contained on this page contains matters which are the subject of ongoing negotiations; are confidential and proprietary; and subject to strict restrictions and limitations on use and disclosure. Please refer to Enterprise Fleet Management’s Statements on Confidentiality and Contingency for further detail. Copyright 2015 Enterprise Fleet Management, Inc. All rights reserved.

4 Case Study – San Marcos

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Information contained on this page contains matters which are the subject of ongoing negotiations; are confidential and proprietary; and subject to strict restrictions and limitations on use and disclosure. Please refer to Enterprise Fleet Management’s Statements on Confidentiality and Contingency for further detail. Copyright 2015 Enterprise Fleet Management, Inc. All rights reserved.

5 Case Study – La Quinta

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Information contained on this page contains matters which are the subject of ongoing negotiations; are confidential and proprietary; and subject to strict restrictions and limitations on use and disclosure. Please refer to Enterprise Fleet Management’s Statements on Confidentiality and Contingency for further detail. Copyright 2015 Enterprise Fleet Management, Inc. All rights reserved.

6 Case Study – County of Los Angeles (LACDC)

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Information contained on this page contains matters which are the subject of ongoing negotiations; are confidential and proprietary; and subject to strict restrictions and limitations on use and disclosure. Please refer to Enterprise Fleet Management’s Statements on Confidentiality and Contingency for further detail. Copyright 2015 Enterprise Fleet Management, Inc. All rights reserved.

7 Supportive Client References
Enterprise Fleet Management works with over 100 government entities in California. B elow is a list of at three (3) client/customer references including company name, contact person, and telephone number.

City of Milpitas
 Tony Ndah
Public Works Director
(408) 586-2602
[email protected]

City of Clearlake
 Alan Flora
City Manager
(707) 994-8201 ext 122
[email protected]

City of Suisun City
 Greg Folsom
City Manager
(707) 421-7350
[email protected]

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) 2020/21 Fleet Assessment
Vehicles Recommended for
Replacement

1 Unit: 1039 Year: 2001 Make: Ford
Model: Taurus Mileage: 31,776
Total Maintenance Cost: $5965.59
Replacement Criteria: 10 years / 100k
Miles Replacement Cost: $35,000
Unit: 2070 Year: 2001 Make: Ford
Model: Ranger Mileage: 81,527
Total Maintenance Cost: $16,250.37
Replacement Criteria: 10 years / 100K
Miles Replacement Cost: $35,000

Unit: 1336 Year: 2007 Make: Dodge
Model: Charger Mileage: 70,370
Total Maintenance Cost: $29,714.53
Replacement Criteria: 7 years / 75K Miles

Replacement Cost: $60,000

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) 2020/21 Fleet Assessment
Vehicles Recommended for
Replacement

2 Unit: 1252 Year: 2009 Make: Chevy
Model: Malibu Mileage: 73,370
Total Maintenance Cost: $8,286.00
Criteria for Replacement: 7 years / 75K
Miles

Replacement Cost: $45,000
Unit: 2063 Year: 2000 Make: Ford
Model: Ranger Mileage: 85,478
Total Maintenance Cost: $9,517.67
Criteria for Replacement: 10 years
/ 100K Miles
Replacement Cost: $45,000

Unit: 2079 Year: 2002 Make: Ford
Model: Ranger Mileage: 48,197
Total Maintenance Cost: $7092.57
Criteria for Replacement: 10 years /
100k Miles

Replacement Cost: $45,000

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) 2020/21 Fleet Assessment
Vehicles Recommended for
Replacement

3 Unit: 1037 Make: Ford Model: Taurus

Mileage: 40,508

Total Maintenance Cost:$5274.54

Replacement Criteria: 10 year / 100K Miles
Replacement Cost: $35,000
Unit: 1038 Make: Ford Model: Taurus

Mileage: 38,283

Total Maintenance Cost:$9910.26

Replacement Criteria: 10 year / 100K Miles
Replacement Cost: $35,000

Unit: 1036 Make: Ford Model: Taurus

Mileage: 41,199

Total Maintenance Cost:$5698.00

Replacement Criteria: 10 year / 100K Miles
Replacement Cost: $35,000

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) 2020/21 Fleet Assessment
Vehicles Recommended for
Replacement

4 Unit: 8003 Year: 2012 Make: Mitsubishi
Model: I-Miev

Mileage: 18,092
Total Maintenance Cost: $164.56
Replacement Criteria: 10 years / 100k Miles
Replacement Cost: $35,000

Unit: 2072 Year: 2001 Make: Ford
Model: F-150 w/ lift gate

Mileage: 95,963
Total Maintenance Cost: $13,782.40
Replacement Criteria: 10 years / 100k Miles
Replacement Cost: $45,000

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Prepared For: City of Campbell Date 10/22/2020
AE/AM JA8
Unit #
Year 2021 Make Nissan Model Altima
Series 2.5 SV 4dr Front-wheel Drive Sedan
Vehicle Order Type Ordered Term 60 State CA Customer# 472722 $ 25,548.00 Capitalized Price of Vehicle 1
$ 0.00 * Sales Tax 0.0000% State CA
$ 442.77 * Initial License Fee
$ 0.00 Registration Fee
$ 350.00 Other:Courtesy Delivery Fee
$ 0.00 Capitalized Price Reduction
$ 0.00 Tax on Capitalized Price Reduction
$ 0.00 Gain Applied From Prior Unit
$ 0.00 * Tax on Gain On Prior
$ 0.00 * Security Deposit
$ 0.00 * Tax on Incentive ( Taxable Incentive Total : $0.00 ) All language and acknowledgments contained in the signed quote apply to all vehicles that are ordered under this signed quote.

Order Information
Driver Name
Exterior Color (0 P) Gun Metallic
Interior Color (0 I) Charcoal w/Cloth Seat Trim
Lic. Plate Type Government
GVWR 0
$ 25,898.00 Total Capitalized Amount (Delivered Price)
$ 349.62 Depreciation Reserve @ 1.3500%
$ 78.70 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor) 2 $ 428.32 Total Monthly Rental Excluding Additional Services Additional Fleet Management
Master Policy Enrollment Fees
$ 0.00 Commercial Automobile Liability Enrollment
Liability Limit $0.00
$ 0.00 Physical Damage Management Comp/Coll Deductible 0 / 0 $ 0.00 Full Maintenance Program 3 Contract Miles 0 OverMileage Charge $ 0.00 Per Mile Incl: # Brake Sets (1 set = 1 Axle) 0 # Tires 0 Loaner Vehicle Not Included $ 0.00 Additional Services SubTotal
$ 39.62 Sales Tax 9.2500% State CA
$ 467.94 Total Monthly Rental Including Additional Services $ 4,920.80 Reduced Book Value at 60 Months
$ 400.00 Service Charge Due at Lease Termination
Quote based on estimated annual mileage of 5,000
(Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval)
Notes
Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open - End (Equity) Lease Agreement with respect to such vehicle.

Lessee must maintain insurance coverage on the vehicle as set forth in Section 11 of the Master Open-End (Equity) Lease Agreement until the vehicle is sold.

ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR.

Lessee hereby authorizes this vehicle order, agrees to lease the vehicle on the terms set forth herein and in the Master Equity Lease Agreement and agrees that Lessor shall have the right to collect damages in the event Lessee fails or refuses to accept delivery of the ordered vehicle. Lessee certifies that it intends that more than 50% of the use of the vehicle is to be in a trade or business of the Lessee.

LESSEE City of Campbell

BY TITLE DATE
* INDICATES ITEMS TO BE BILLED ON DELIVERY.
1 Capitalized Price of Vehicle May be Adjusted to Reflect Final Manufacturer's Invoice. Lessee Hereby Assigns to Lessor anyManufacturer Rebates And/Or Manufacturer Incentives Intended for the Lessee, Which Rebates And/Or Incentives Have Been UsedBy Lessor to Reduce the Capitalized Price of the Vehicle. 2 Monthly Lease Charge Will Be Adjusted to Reflect the Interest Rate on the Delivery Date (Subject to a Floor). 3 The inclusion herein of references to maintenance fees/services are solely for the administrative convenience of Lessee. Notwithstanding the inclusion of such references in this [Invoice/Schedule/Quote], all such maintenance services are to be performed by Enterprise Fleet Management, Inc., and all such maintenance fees are payable by Lessee solely for the account of Enterprise Fleet Management, Inc., pursuant to that certain separate [Maintenance Agreement] entered into by and between Lessee and Enterprise Fleet Management, Inc.; provided that such maintenance fees are being billed by Enterprise FM Trust, and are payable at the direction of Enterprise FM Trust, solely as an authorized agent for collection on behalf of Enterprise Fleet Management, Inc.

Open-End (Equity) Lease Rate Quote Quote No: 4757221
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Aftermarket Equipment Total
Description (B)illed or (C)apped Price
Estimated Cost for low profile light bars C $ 5,000.00
Total Aftermarket Equipment Billed $ 0.00
Total Aftermarket Equipment Capitalized $ 5,000.00
Aftermarket Equipment Total $ 5,000.00
Open-End (Equity) Lease Rate Quote Quote No: 4757221
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) VEHICLE INFORMATION:
2021 Nissan Altima 2.5 SV 4dr Front-wheel Drive Sedan - US Series ID: 13311
Pricing Summary:

INVOICE MSRP
Base Vehicle $23,673 $25,400.00
Total Options $0.00 $0.00
Destination Charge $925.00 $925.00
Total Price
SELECTED COLOR:

Exterior: KAD-(0 P) Gun Metallic
Interior: G-(0 I) Charcoal w/Cloth Seat Trim
SELECTED OPTIONS:

CODE DESCRIPTION INVOICE MSRP
C03 50 State Emissions NC NC
G_01 (0 I) Charcoal w/Cloth Seat Trim NC NC
KAD_02 (0 P) Gun Metallic NC NC
PAINT Monotone Paint Application STD STD
STDEN Engine: 2.5L DOHC 16-Valve 4-Cylinder STD STD
STDRD Radio: AM/FM Audio System STD STD
STDST Front Bucket Seats STD STD
STDTM Cloth Seat Trim STD STD
STDTN Transmission: Xtronic CVT (Continuously Variable) STD STD STDTR Tires: 215/55R17 AS STD STD
STDWL Wheels: 17" Alloy STD STD
$24,598.00 $26,325.00
Open-End (Equity) Lease Rate Quote Quote No: 4757221
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) CONFIGURED FEATURES:

Body Exterior Features:

Number Of Doors  4
Rear Cargo Door Type:  trunk
Driver And Passenger Mirror:  power remote manual folding side-view door mirrors Door Handles:  chrome
Front And Rear Bumpers:  body-coloured front and rear bumpers Body Material:  galvanized steel/aluminum body material Grille:  black w/chrome accents grille
Convenience Features:

Air Conditioning  manual air conditioning
Air Filter:  air filter
Cruise Control:  cruise control with steering wheel controls Trunk/Hatch/Door Remote Release:  power cargo access remote release Fuel Remote Release:  mechanical fuel remote release
Power Windows:  power windows with driver 1-touch down
Remote Keyless Entry:  keyfob (all doors) remote keyless entry Illuminated Entry:  illuminated entry
Integrated Key Remote:  integrated key/remote
Auto Locking:  auto-locking doors
Passive Entry:  Intelligent Key proximity key
Valet Key:  valet function
Trunk FOB Controls:  keyfob trunk/hatch/door release
Remote Engine Start:  remote engine start - keyfob
Steering Wheel:  sport steering wheel with manual tilting, manual telescoping Day-Night Rearview Mirror:  day-night rearview mirror
Driver and Passenger Vanity Mirror:  illuminated auxiliary driver and passenger-side visor mirrors Front Cupholder:  front and rear cupholders
Floor Console:  full floor console with covered box
Overhead Console:  mini overhead console with storage
Glove Box:  locking glove box
Driver Door Bin:  driver and passenger door bins
Rear Door Bins:  rear door bins
Seatback Storage Pockets:  2 seatback storage pockets
Audio Media Storage:  audio media storage
IP Storage:  bin instrument-panel storage
Driver Footrest:  driver's footrest
Retained Accessory Power:  retained accessory power
Power Accessory Outlet:  1 12V DC power outlet
Entertainment Features:
radio  SiriusXM AM/FM/Satellite with seek-scan
Radio Data System:  radio data system
Voice Activated Radio:  voice activated radio
Speed Sensitive Volume:  speed-sensitive volume
Steering Wheel Radio Controls:  steering-wheel mounted audio controls Speakers:  6 speakers
Internet Access:  NissanConnect internet access
1st Row LCD:  2 1st row LCD monitor
Wireless Connectivity:  wireless phone connectivity
Antenna:  window grid antenna
Lighting, Visibility and Instrumentation Features:

Headlamp Type  delay-off projector beam LED low/high beam headlamps Auto-Dimming Headlights:  High Beam Assist (HBA) auto high-beam headlights Front Wipers:  variable intermittent speed-sensitive wipers wipers Rear Window Defroster:  rear window defroster
Tinted Windows:  light-tinted windows
Dome Light:  dome light with fade
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Front Reading Lights:  front and rear reading lights
Ignition Switch:  ignition switch light
Variable IP Lighting:  variable instrument panel lighting Display Type:  analog display
Tachometer:  tachometer
Exterior Temp:  outside-temperature display
Low Tire Pressure Warning:  tire specific low-tire-pressure warning Park Distance Control:  rear parking sensors
Trip Computer:  trip computer
Trip Odometer:  trip odometer
Lane Departure Warning:  lane departure
Blind Spot Sensor:  blind spot
Front Pedestrian Braking:  pedestrian detection
Forward Collision Alert:  forward collision
Water Temp Gauge:  water temp. gauge
Clock:  in-radio display clock
Systems Monitor:  systems monitor
Rear Vision Camera:  rear vision camera
Oil Pressure Warning:  oil-pressure warning
Battery Warning:  battery warning
Lights On Warning:  lights-on warning
Key in Ignition Warning:  key-in-ignition warning
Low Fuel Warning:  low-fuel warning
Door Ajar Warning:  door-ajar warning
Trunk Ajar Warning:  trunk-ajar warning
Brake Fluid Warning:  brake-fluid warning
Safety And Security:

ABS  four-wheel ABS brakes
Number of ABS Channels:  4 ABS channels
Brake Assistance:  brake assist
Brake Type:  four-wheel disc brakes
Vented Disc Brakes:  front ventilated disc brakes
Daytime Running Lights:  daytime running lights
Spare Tire Type:  compact spare tire
Spare Tire Mount:  spare tire mounted inside under cargo Driver Front Impact Airbag:  driver and passenger front-impact airbags Driver Side Airbag:  seat-mounted driver and passenger side-impact airbags Overhead Airbag:  curtain 1st and 2nd row overhead airbag Knee Airbag:  knee airbag
Rear Side Airbag:  rear side-impact-impact airbag
Occupancy Sensor:  front passenger airbag occupancy sensor Height Adjustable Seatbelts:  height adjustable front seatbelts Seatbelt Pretensioners:  front and rear seatbelt pre-tensioners 3Point Rear Centre Seatbelt:  3 point rear centre seatbelt Side Impact Bars:  side-impact bars
Rear Child Safety Locks:  rear child safety locks
Ignition Disable:  immobilizer
Security System:  security system
Panic Alarm:  panic alarm
Electronic Stability:  electronic stability
Traction Control:  ABS and driveline traction control
Front and Rear Headrests:  manual adjustable front head restraints Rear Headrest Control:  3 rear head restraints
Seats And Trim:

Seating Capacity  max. seating capacity of 5
Front Bucket Seats:  front bucket seats
Number of Driver Seat Adjustments:  8-way driver and passenger seat adjustments Reclining Driver Seat:  power reclining driver and manual reclining passenger seats Driver Height Adjustment:  power height-adjustable driver and passenger seats Printed On 10/22/2020 02:08:47 PM Page 5 of 6

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Driver Fore/Aft:  power driver and passenger fore/aft adjustment Driver Cushion Tilt:  power driver and passenger cushion tilt Front Centre Armrest Storage:  front centre armrest
Rear Seat Type:  rear 60-40 bench seat
Rear Folding Position:  rear seat fold-forward seatback Rear Seat Armrest:  rear seat centre armrest
Leather Upholstery:  cloth front and rear seat upholstery Door Trim Insert:  leatherette door panel trim
Headliner Material:  full cloth headliner
Floor Covering:  full carpet floor covering
Dashboard Console Insert, Door Panel Insert Combination:  metal-look instrument panel insert, door panel insert, console insert Shift Knob Trim:  urethane shift knob
LeatherSteeringWheel:  leather/metal-look steering wheel Interior Accents:  chrome/metal-look interior accents
Cargo Space Trim:  carpet cargo space
Trunk Lid:  carpet trunk lid/rear cargo door
Cargo Tie Downs:  cargo tie-downs
Cargo Light:  cargo light
Concealed Cargo Storage:  concealed cargo storage
Standard Engine:

Engine 188-hp, 2.5-liter I-4 (regular gas)
Standard Transmission:

Transmission 2-speed CVT w/ OD
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Prepared For: City of Campbell Date 10/22/2020
AE/AM JA8
Unit #
Year 2021 Make Toyota Model Highlander
Series L 4dr All-wheel Drive
Vehicle Order Type Ordered Term 60 State CA Customer# 472722 $ 38,532.00 Capitalized Price of Vehicle 1
$ 0.00 * Sales Tax 0.0000% State CA
$ 570.41 * Initial License Fee
$ 0.00 Registration Fee
$ 350.00 Other:Courtesy Delivery Fee
$ 0.00 Capitalized Price Reduction
$ 0.00 Tax on Capitalized Price Reduction
$ 0.00 Gain Applied From Prior Unit
$ 0.00 * Tax on Gain On Prior
$ 0.00 * Security Deposit
$ 0.00 * Tax on Incentive ( Taxable Incentive Total : $0.00 ) All language and acknowledgments contained in the signed quote apply to all vehicles that are ordered under this signed quote.

Order Information
Driver Name
Exterior Color (0 P) Celestial Silver Metallic
Interior Color (0 I) Black w/Fabric Seat Trim
Lic. Plate Type Government
GVWR 0
$ 38,882.00 Total Capitalized Amount (Delivered Price)
$ 524.91 Depreciation Reserve @ 1.3500%
$ 112.36 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor) 2 $ 637.27 Total Monthly Rental Excluding Additional Services Additional Fleet Management
Master Policy Enrollment Fees
$ 0.00 Commercial Automobile Liability Enrollment
Liability Limit $0.00
$ 0.00 Physical Damage Management Comp/Coll Deductible 0 / 0 $ 0.00 Full Maintenance Program 3 Contract Miles 0 OverMileage Charge $ 0.00 Per Mile Incl: # Brake Sets (1 set = 1 Axle) 0 # Tires 0 Loaner Vehicle Not Included $ 0.00 Additional Services SubTotal
$ 58.95 Sales Tax 9.2500% State CA
$ 696.22 Total Monthly Rental Including Additional Services $ 7,387.40 Reduced Book Value at 60 Months
$ 400.00 Service Charge Due at Lease Termination
Quote based on estimated annual mileage of 5,000
(Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval)
Notes
Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open - End (Equity) Lease Agreement with respect to such vehicle.

Lessee must maintain insurance coverage on the vehicle as set forth in Section 11 of the Master Open-End (Equity) Lease Agreement until the vehicle is sold.

ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR.

LESSEE City of Campbell

Open-End (Equity) Lease Rate Quote Quote No: 4795089
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Aftermarket Equipment Total
Description (B)illed or (C)apped Price
Estimated cost for low profile light bars C $ 5,000.00
Total Aftermarket Equipment Billed $ 0.00
Total Aftermarket Equipment Capitalized $ 5,000.00
Aftermarket Equipment Total $ 5,000.00
Open-End (Equity) Lease Rate Quote Quote No: 4795089
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) VEHICLE INFORMATION:
2021 Toyota Highlander L 4dr All-wheel Drive - US
Series ID: 6937
Pricing Summary:

INVOICE MSRP
Base Vehicle $33,241 $36,410.00
Total Options $0.00 $0.00
Destination Charge $1,175.00 $1,175.00
Total Price
SELECTED COLOR:

Exterior: 1J9-(0 P) Celestial Silver Metallic
Interior: 20-(0 I) Black w/Fabric Seat Trim
SELECTED OPTIONS:

CODE DESCRIPTION INVOICE MSRP
1J9_02 (0 P) Celestial Silver Metallic NC NC
20_01 (0 I) Black w/Fabric Seat Trim NC NC
FB Fabric Seat Trim STD STD
FE 50 State Emissions NC NC
LO L Grade Package NC NC
PAINT Monotone Paint Application STD STD
RMFOG Without Front Fog & Driving Lamp Included Included STDAX 3.003 Axle Ratio STD STD
STDEN Engine: 3.5L V6 DOHC STD STD
STDGV GVWR: 5,935 lbs STD STD
STDRD Radio: Audio System Included Included
STDST Front Bucket Seats STD STD
STDTN Transmission: 8-Speed Automatic STD STD
STDTR Tires: 235/65R18M STD STD
STDWL Wheels: 18" Painted Alloy STD STD
THEFT Anti-Theft System w/Immobilizer Included Included $34,416.00 $37,585.00
Open-End (Equity) Lease Rate Quote Quote No: 4795089
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) CONFIGURED FEATURES:

Body Exterior Features:

Number Of Doors  4
Rear Cargo Door Type:  liftgate
Driver And Passenger Mirror:  power remote heated manual folding side-view door mirrors with turn signal indicator Spoiler:  rear lip spoiler
Door Handles:  body-coloured
Front And Rear Bumpers:  body-coloured front and rear bumpers with black rub strip Front License Plate Bracket:  front license plate bracket Front Mud Flaps:  front and rear mud flaps
Body Material:  fully galvanized steel body material
Grille:  black w/metal-look surround grille
Convenience Features:

Air Conditioning  automatic dual-zone front air conditioning Air Filter:  air filter
Rear Air Conditioning:  rear air conditioning with separate controls Cruise Control:  cruise control with steering wheel controls, Full-Speed Range Dynamic Radar Cruise Control (DRCC) distance pacing Fuel Remote Release:  mechanical fuel remote release
Power Windows:  power windows with front and rear 1-touch down 1/4 Vent Rear Windows:  power rearmost windows
Remote Keyless Entry:  keyfob (all doors) remote keyless entry Illuminated Entry:  illuminated entry
Integrated Key Remote:  integrated key/remote
Auto Locking:  auto-locking doors
Passive Entry:  Smart Key proximity key
Steering Wheel:  steering wheel with manual tilting, manual telescoping Day-Night Rearview Mirror:  day-night rearview mirror
Driver and Passenger Vanity Mirror:  illuminated driver and passenger-side visor mirrors Emergency SOS:  Safety Connect with 3-year trial emergency communication system Front Cupholder:  front and rear cupholders
Floor Console:  full floor console with covered box
Overhead Console:  mini overhead console with storage, conversation mirror Glove Box:  locking glove box
Driver Door Bin:  driver and passenger door bins
Rear Door Bins:  rear door bins
Seatback Storage Pockets:  2 seatback storage pockets
IP Storage:  bin instrument-panel storage
Driver Footrest:  driver's footrest
Retained Accessory Power:  retained accessory power
Power Accessory Outlet:  2 12V DC power outlets
Entertainment Features:
radio  SiriusXM AM/FM/Satellite with seek-scan
Voice Activated Radio:  voice activated radio
Speed Sensitive Volume:  speed-sensitive volume
Steering Wheel Radio Controls:  steering-wheel mounted audio controls Speakers:  6 speakers
Internet Access:  Wi-Fi Connect with up to 2GB within 3-month trial internet access 1st Row LCD:  2 1st row LCD monitor
Wireless Connectivity:  wireless phone connectivity
Antenna:  window grid antenna
Lighting, Visibility and Instrumentation Features:

Headlamp Type  delay-off aero-composite LED low/high beam headlamps Auto-Dimming Headlights:  Automatic High Beams (AHB) auto high-beam headlights Front Wipers:  variable intermittent wipers with heating wiper park Rear Window wiper:  fixed interval rear window wiper
Rear Window Defroster:  rear window defroster
Tinted Windows:  deep-tinted windows
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Dome Light:  dome light with fade
Front Reading Lights:  front and rear reading lights
Door Curb/Courtesy Lights:  4 door curb/courtesy lights Ignition Switch:  ignition switch light
Variable IP Lighting:  variable instrument panel lighting Display Type:  analog display
Tachometer:  tachometer
Exterior Temp:  outside-temperature display
Low Tire Pressure Warning:  tire specific low-tire-pressure warning Trip Computer:  trip computer
Trip Odometer:  trip odometer
Lane Departure Warning:  lane departure
Front Pedestrian Braking:  pedestrian detection
Forward Collision Alert:  forward collision
Water Temp Gauge:  water temp. gauge
Clock:  in-dash clock
Systems Monitor:  systems monitor
Rear Vision Camera:  rear vision camera
Oil Pressure Warning:  oil-pressure warning
Battery Warning:  battery warning
Key in Ignition Warning:  key-in-ignition warning
Low Fuel Warning:  low-fuel warning
Low Washer Fluid Warning:  low-washer-fluid warning
Door Ajar Warning:  door-ajar warning
Trunk Ajar Warning:  trunk-ajar warning
Brake Fluid Warning:  brake-fluid warning
Transmission Fluid Temperature Warning:  transmission-fluid-temperature warning Safety And Security:

ABS  four-wheel ABS brakes
Number of ABS Channels:  4 ABS channels
Brake Assistance:  brake assist
Brake Type:  four-wheel disc brakes
Vented Disc Brakes:  front ventilated disc brakes
Daytime Running Lights:  daytime running lights
Spare Tire Type:  compact spare tire
Spare Tire Mount:  underbody mounted spare tire w/crankdown Driver Front Impact Airbag:  driver and passenger front-impact airbags Driver Side Airbag:  seat-mounted driver and passenger side-impact airbags Overhead Airbag:  curtain 1st, 2nd and 3rd row overhead airbag Knee Airbag:  knee airbag
Occupancy Sensor:  front passenger airbag occupancy sensor Height Adjustable Seatbelts:  height adjustable front seatbelts Seatbelt Pretensioners:  front seatbelt pre-tensioners
3Point Rear Centre Seatbelt:  3 point rear centre seatbelt Side Impact Bars:  side-impact bars
Perimeter Under Vehicle Lights:  remote activated perimeter/approach lights Tailgate/Rear Door Lock Type:  tailgate/rear door lock included with power door locks Rear Child Safety Locks:  rear child safety locks
Ignition Disable:  immobilizer
Panic Alarm:  panic alarm
Tracker System:  tracker system
Electronic Stability:  electronic stability
Traction Control:  ABS and driveline traction control
Front and Rear Headrests:  manual adjustable front head restraints Rear Headrest Control:  3 rear head restraints
3rd Row Headrests:  3 manual adjustable third row head restraints Seats And Trim:

Seating Capacity max. seating capacity of 8
Front Bucket Seats: front bucket seats
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Number of Driver Seat Adjustments:  8-way driver and passenger seat adjustments Reclining Driver Seat:  power reclining driver and manual reclining passenger seats Driver Height Adjustment:  power height-adjustable driver and passenger seats Driver Fore/Aft:  power driver and passenger fore/aft adjustment Driver Cushion Tilt:  power driver and passenger cushion tilt Front Centre Armrest Storage:  front centre armrest
Rear Seat Type:  rear manual reclining 60-40 split-bench seat Rear Seat Fore/Aft:  manual rear seat fore/aft adjustment Rear Folding Position:  rear seat fold-forward seatback Rear Seat Armrest:  rear seat centre armrest
3rd Row Seat Type:  fixed third row manual 60-40 split-bench seat 3rd Row Electric Control:  fold into floor third row seat Leather Upholstery:  cloth front and rear seat upholstery Door Trim Insert:  leatherette door panel trim
Headliner Material:  full cloth headliner
Floor Covering:  full carpet floor covering
Dashboard Console Insert, Door Panel Insert Combination:  metal-look instrument panel insert, door panel insert, console insert Shift Knob Trim:  urethane shift knob
Interior Accents:  metal-look interior accents
Cargo Space Trim:  carpet cargo space
Trunk Lid:  plastic trunk lid/rear cargo door
Cargo Tie Downs:  cargo tie-downs
Cargo Light:  cargo light
Concealed Cargo Storage:  concealed cargo storage
Standard Engine:

Engine 295-hp, 3.5-liter V-6 (regular gas)
Standard Transmission:

Transmission 8-speed automatic w/ OD and auto-manual
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Prepared For: City of Campbell Date 10/22/2020
AE/AM JA8
Unit #
Year 2021 Make Toyota Model Prius Prime
Series LE 5dr Hatchback
Vehicle Order Type Ordered Term 60 State CA Customer# 472722 $ 25,760.00 Capitalized Price of Vehicle 1
$ 0.00 * Sales Tax 0.0000% State CA
$ 425.17 * Initial License Fee
$ 0.00 Registration Fee
$ 350.00 Other:Courtesy Delivery Fee
$ 0.00 Capitalized Price Reduction
$ 0.00 Tax on Capitalized Price Reduction
$ 0.00 Gain Applied From Prior Unit
$ 0.00 * Tax on Gain On Prior
$ 0.00 * Security Deposit
$ 0.00 * Tax on Incentive ( Taxable Incentive Total : $0.00 ) All language and acknowledgments contained in the signed quote apply to all vehicles that are ordered under this signed quote.

Order Information
Driver Name
Exterior Color (0 P) Super White
Interior Color (0 I) Black w/Fabric Seat Trim
Lic. Plate Type Government
GVWR 0
$ 26,110.00 Total Capitalized Amount (Delivered Price)
$ 352.49 Depreciation Reserve @ 1.3500%
$ 77.73 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor) 2 $ 430.22 Total Monthly Rental Excluding Additional Services Additional Fleet Management
Master Policy Enrollment Fees
$ 0.00 Commercial Automobile Liability Enrollment
Liability Limit $0.00
$ 0.00 Physical Damage Management Comp/Coll Deductible 0 / 0 $ 0.00 Full Maintenance Program 3 Contract Miles 0 OverMileage Charge $ 0.00 Per Mile Incl: # Brake Sets (1 set = 1 Axle) 0 # Tires 0 Loaner Vehicle Not Included $ 0.00 Additional Services SubTotal
$ 39.80 Sales Tax 9.2500% State CA
$ 470.02 Total Monthly Rental Including Additional Services $ 4,960.60 Reduced Book Value at 60 Months
$ 400.00 Service Charge Due at Lease Termination
Quote based on estimated annual mileage of 5,000
(Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval)
Notes
Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open - End (Equity) Lease Agreement with respect to such vehicle.

Lessee must maintain insurance coverage on the vehicle as set forth in Section 11 of the Master Open-End (Equity) Lease Agreement until the vehicle is sold.

ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR.

LESSEE City of Campbell

Open-End (Equity) Lease Rate Quote Quote No: 4759239
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) VEHICLE INFORMATION:
2021 Toyota Prius Prime LE 5dr Hatchback - US
Series ID: 1235
Pricing Summary:

INVOICE MSRP
Base Vehicle $27,090 $28,220.00
Total Options $159.00 $259.00
Destination Charge $995.00 $995.00
Total Price
SELECTED COLOR:

Exterior: 040-(0 P) Super White
Interior: 20-(0 I) Black w/Fabric Seat Trim
SELECTED OPTIONS:

CODE DESCRIPTION INVOICE MSRP
040_02 (0 P) Super White NC NC
20_01 (0 I) Black w/Fabric Seat Trim NC NC
CF Carpet Mat Package (TMS) $159.00 $259.00
FB Fabric Seat Trim STD STD
FE 50 State Federal Emissions NC NC
NATL National Region NC NC
PAINT Monotone Paint Application STD STD
STDEN Engine: 1.8L 4-Cylinder DOHC 16V VVT-i STD STD
STDRD Radio: Audio Plus STD STD
STDST Heated Front Bucket Seats STD STD
STDTN Transmission: Continuously Variable Automatic STD STD STDTR Tires: P195/65R15 All-Season STD STD
STDWL Wheels: 15" x 6.5J 5-Spoke Aluminum Alloy STD STD $28,244.00 $29,474.00
Open-End (Equity) Lease Rate Quote Quote No: 4759239
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) CONFIGURED FEATURES:

Body Exterior Features:

Number Of Doors  4
Rear Cargo Door Type:  liftgate
Driver And Passenger Mirror:  power remote heated manual folding side-view door mirrors Door Handles:  body-coloured
Front And Rear Bumpers:  body-coloured front and rear bumpers with black rub strip Body Material:  galvanized steel/aluminum/composite body material Grille:  black grille
Convenience Features:

Air Conditioning  automatic air conditioning
Air Filter:  air filter
Cruise Control:  cruise control with steering wheel controls, Full-Speed Range Dynamic Radar Cruise Control (DRCC) distance pacing Fuel Remote Release:  power fuel remote release
Power Windows:  power windows with front and rear 1-touch down Remote Keyless Entry:  keyfob (all doors) remote keyless entry Illuminated Entry:  illuminated entry
Integrated Key Remote:  integrated key/remote
Auto Locking:  auto-locking doors
Passive Entry:  Smart Key proximity key
Steering Wheel:  steering wheel with manual tilting, manual telescoping Day-Night Rearview Mirror:  day-night rearview mirror
Driver and Passenger Vanity Mirror:  illuminated auxiliary driver and passenger-side visor mirrors Emergency SOS:  Safety Connect with 1-year trial emergency communication system Front Cupholder:  front and rear cupholders
Floor Console:  full floor console with covered box
Overhead Console:  mini overhead console with storage
Glove Box:  illuminated glove box
Driver Door Bin:  driver and passenger door bins
Seatback Storage Pockets:  2 seatback storage pockets
Driver Footrest:  driver's footrest
Retained Accessory Power:  retained accessory power
Power Accessory Outlet:  1 12V DC power outlet
Entertainment Features:
radio  SiriusXM AM/FM/Satellite with seek-scan, single in-dash CD player Voice Activated Radio:  voice activated radio
Speed Sensitive Volume:  speed-sensitive volume
Steering Wheel Radio Controls:  steering-wheel mounted audio controls Speakers:  6 speakers
Internet Access:  Wi-Fi Connect with up to 2GB within 3-month trial internet access 1st Row LCD:  3 1st row LCD monitor
Wireless Connectivity:  wireless phone connectivity
Antenna:  integrated roof antenna
Lighting, Visibility and Instrumentation Features:

Headlamp Type  delay-off projector beam LED low/high beam headlamps Auto-Dimming Headlights:  Automatic High Beams (AHB) auto high-beam headlights Front Wipers:  variable intermittent wipers
Rear Window Defroster:  rear window defroster
Tinted Windows:  light-tinted windows
Dome Light:  dome light with fade
Front Reading Lights:  front reading lights
Door Curb/Courtesy Lights:  2 door curb/courtesy lights Ignition Switch:  ignition switch light
Variable IP Lighting:  variable instrument panel lighting Display Type:  digital display
Exterior Temp:  outside-temperature display
Low Tire Pressure Warning:  low-tire-pressure warning
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Trip Computer:  trip computer
Trip Odometer:  trip odometer
Lane Departure Warning:  lane departure
Front Pedestrian Braking:  pedestrian detection
Forward Collision Alert:  forward collision
Clock:  in-dash clock
Systems Monitor:  systems monitor
Rear Vision Camera:  rear vision camera
Oil Pressure Warning:  oil-pressure warning
Water Temp Warning:  water-temp. warning
Battery Warning:  battery warning
Lights On Warning:  lights-on warning
Key in Ignition Warning:  key-in-ignition warning
Low Fuel Warning:  low-fuel warning
Door Ajar Warning:  door-ajar warning
Trunk Ajar Warning:  trunk-ajar warning
Brake Fluid Warning:  brake-fluid warning
Safety And Security:

ABS  four-wheel ABS brakes
Number of ABS Channels:  4 ABS channels
Brake Assistance:  brake assist
Brake Type:  four-wheel disc brakes
Vented Disc Brakes:  front ventilated disc brakes
Daytime Running Lights:  daytime running lights
Driver Front Impact Airbag:  driver and passenger front-impact airbags Driver Side Airbag:  seat-mounted driver and passenger side-impact airbags Overhead Airbag:  curtain 1st and 2nd row overhead airbag Knee Airbag:  knee airbag
Rear Side Airbag:  rear side-impact-impact airbag
Occupancy Sensor:  front passenger airbag occupancy sensor Height Adjustable Seatbelts:  height adjustable front seatbelts Seatbelt Pretensioners:  front seatbelt pre-tensioners
3Point Rear Centre Seatbelt:  3 point rear centre seatbelt Side Impact Bars:  side-impact bars
Tailgate/Rear Door Lock Type:  tailgate/rear door lock included with power door locks Rear Child Safety Locks:  rear child safety locks
Ignition Disable:  immobilizer
Panic Alarm:  panic alarm
Tracker System:  tracker system
Electronic Stability:  VSC electronic stability
Traction Control:  ABS and driveline traction control
Front and Rear Headrests:  manual adjustable front head restraints Rear Headrest Control:  3 rear head restraints
Break Resistant Glass:  break resistant glass
Seats And Trim:

Seating Capacity  max. seating capacity of 5
Front Bucket Seats:  front bucket seats
Front Heated Cushion:  driver and passenger heated-cushions Front Heated Seatback:  driver and passenger heated-seatbacks Number of Driver Seat Adjustments:  6-way driver and passenger seat adjustments Reclining Driver Seat:  manual reclining driver and passenger seats Driver Height Adjustment:  manual height-adjustable driver and passenger seats Driver Fore/Aft:  manual driver and passenger fore/aft adjustment Front Centre Armrest Storage:  front centre armrest
Rear Seat Type:  rear 60-40 bench seat
Rear Folding Position:  rear seat fold-forward seatback Rear Seat Armrest:  rear seat centre armrest
Leather Upholstery:  cloth front and rear seat upholstery Headliner Material:  full cloth headliner
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Floor Covering:  full carpet floor covering
Dashboard Console Insert, Door Panel Insert Combination:  metal-look/piano black instrument panel insert, door panel insert, console insert Shift Knob Trim:  urethane shift knob
LeatherSteeringWheel:  SofTex leatherette steering wheel Floor Mats:  carpet front and rear floor mats
Interior Accents:  chrome/metal-look interior accents
Cargo Space Trim:  carpet cargo space
Trunk Lid:  plastic trunk lid/rear cargo door
Cargo Mats:  carpet cargo mat
Cargo Cover:  roll-up cargo cover
Cargo Tie Downs:  cargo tie-downs
Cargo Light:  cargo light
Concealed Cargo Storage:  concealed cargo storage
Air Compressor:  tire mobility kit
Standard Engine:

Engine 95-hp, 1.8-liter I-4 (regular gas)
Standard Transmission:

Transmission 2-speed CVT w/ OD
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Prepared For: City of Campbell Date 10/22/2020
AE/AM JA8
Unit #
Year 2021 Make Chevrolet Model Colorado
Series WT 4x4 Crew Cab 5 ft. box 128.3 in. WB
Vehicle Order Type Ordered Term 60 State CA Customer# 472722 $ 29,832.95 Capitalized Price of Vehicle 1
$ 0.00 * Sales Tax 0.0000% State CA
$ 503.03 * Initial License Fee
$ 0.00 Registration Fee
$ 350.00 Other:Courtesy Delivery Fee
$ 0.00 Capitalized Price Reduction
$ 0.00 Tax on Capitalized Price Reduction
$ 0.00 Gain Applied From Prior Unit
$ 0.00 * Tax on Gain On Prior
$ 0.00 * Security Deposit
$ 0.00 * Tax on Incentive ( Taxable Incentive Total : $0.00 ) All language and acknowledgments contained in the signed quote apply to all vehicles that are ordered under this signed quote.

Order Information
Driver Name
Exterior Color (0 P) Summit White
Interior Color (0 I) Jet Black/Dark Ash w/Cloth Seat Trim Lic. Plate Type Government
GVWR 0
$ 30,182.95 Total Capitalized Amount (Delivered Price)
$ 407.47 Depreciation Reserve @ 1.3500%
$ 91.19 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor) 2 $ 498.66 Total Monthly Rental Excluding Additional Services Additional Fleet Management
Master Policy Enrollment Fees
$ 0.00 Commercial Automobile Liability Enrollment
Liability Limit $0.00
$ 0.00 Physical Damage Management Comp/Coll Deductible 0 / 0 $ 0.00 Full Maintenance Program 3 Contract Miles 0 OverMileage Charge $ 0.00 Per Mile Incl: # Brake Sets (1 set = 1 Axle) 0 # Tires 0 Loaner Vehicle Not Included $ 0.00 Additional Services SubTotal
$ 46.13 Sales Tax 9.2500% State CA
$ 544.79 Total Monthly Rental Including Additional Services $ 5,734.75 Reduced Book Value at 60 Months
$ 400.00 Service Charge Due at Lease Termination
Quote based on estimated annual mileage of 5,000
(Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval)
Notes
Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open - End (Equity) Lease Agreement with respect to such vehicle.

Lessee must maintain insurance coverage on the vehicle as set forth in Section 11 of the Master Open-End (Equity) Lease Agreement until the vehicle is sold.

ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR.

LESSEE City of Campbell

Open-End (Equity) Lease Rate Quote Quote No: 4795022
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Aftermarket Equipment Total
Description (B)illed or (C)apped Price
Estimated cost for radio and lights C $ 1,500.00
Total Aftermarket Equipment Billed $ 0.00
Total Aftermarket Equipment Capitalized $ 1,500.00
Aftermarket Equipment Total $ 1,500.00
Open-End (Equity) Lease Rate Quote Quote No: 4795022
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) VEHICLE INFORMATION:
2021 Chevrolet Colorado WT 4x4 Crew Cab 5 ft. box 128.3 in. WB - US Series ID: 12M43
Pricing Summary:

INVOICE MSRP
Base Vehicle $30,623.4 $32,100.00
Total Options $914.55 $1,005.00
Destination Charge $1,195.00 $1,195.00
Total Price
SELECTED COLOR:

Exterior: GAZ-(0 P) Summit White
Interior: H2R-(0 I) Jet Black/Dark Ash w/Cloth Seat Trim SELECTED OPTIONS:

CODE DESCRIPTION INVOICE MSRP
4WT Preferred Equipment Group 4WT NC NC
5GD Tow/Haul Mode Included Included
A91 Remote Locking Tailgate Included Included
AH6 Driver 4-Way Power Seat Adjuster Included Included
AR7 Front Bucket Seats STD STD
ATG Extended Range Remote Keyless Entry Included Included C5J GVWR: 6,000 lbs (2,722 kgs) STD STD
CGN Black Spray-On Bedliner w/Chevrolet Logo $432.25 $475.00 CLOTH Cloth Seat Trim NC NC
CTT Hitch Guidance Included Included
GAZ_01 (0 P) Summit White NC NC
GU6 3.42 Rear Axle Ratio STD STD
H2R_01 (0 I) Jet Black/Dark Ash w/Cloth Seat Trim NC NC IOR Radio: Chevrolet Infotainment 3 System STD STD
K34 Electronic Automatic Cruise Control Included Included LGZ Engine: 3.6L DI DOHC V6 VVT STD STD
M5T Transmission: 8-Speed Automatic Included Included
NQ7 2-Speed Electric Transfer Case Included Included
PAINT Monotone Paint Application STD STD
PCN WT Convenience Package $482.30 $530.00
PPA EZ-Lift & Lower Tailgate Included Included
QHR Tires: 255/65R17 AS BW STD STD
RAP Wheels: 17" x 8" Ultra Silver Metallic Steel STD STD RM7 17" x 8" Steel Spare Wheel Included Included
U2K SiriusXM Radio Included Included
UQ3 6-Speaker Audio System Feature Included Included
UTJ Unauthorized Entry Theft-Deterrent System Included Included WARANT Fleet Customer Powertrain Limited Warranty NC NC YF5 California State Emissions Requirements NC NC
ZAO 255/65R17 AS BW Spare Tire Included Included
$32,732.95 $34,300.00
Open-End (Equity) Lease Rate Quote Quote No: 4795022
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) CONFIGURED FEATURES:

Body Exterior Features:

Number Of Doors  4
Rear Cargo Door Type:  tailgate
Driver And Passenger Mirror:  manual folding side-view door mirrors Door Handles:  black
Front And Rear Bumpers:  body-coloured front and rear bumpers with black rub strip Rear Step Bumper:  rear step bumper
Front Tow Hooks:  2 front tow hooks
Bed Liner:  bed liner
Box Style:  regular
Body Material:  galvanized steel/aluminum body material Grille:  chrome grille
Convenience Features:

Air Conditioning  manual air conditioning
Cruise Control:  cruise control with steering wheel controls Power Windows:  power windows with driver 1-touch down
Remote Keyless Entry:  keyfob (front doors) remote keyless entry Illuminated Entry:  illuminated entry
Auto Locking:  auto-locking doors
Steering Wheel:  steering wheel with manual tilting
Day-Night Rearview Mirror:  day-night rearview mirror
Front Cupholder:  front and rear cupholders
Floor Console:  full floor console with covered box
Glove Box:  glove box
Driver Door Bin:  driver and passenger door bins
Rear Door Bins:  rear door bins
Dashboard Storage:  dashboard storage
IP Storage:  bin instrument-panel storage
Rear Underseat Storage Tray:  rear underseat storage tray Driver Footrest:  driver's footrest
Retained Accessory Power:  retained accessory power
Power Accessory Outlet:  2 12V DC power outlets
Entertainment Features:
radio  SiriusXM AM/FM/Satellite with seek-scan
Radio Data System:  radio data system
Audio Theft Deterrent:  TheftLock
Speakers:  6 speakers
1st Row LCD:  1 1st row LCD monitor
Wireless Connectivity:  wireless phone connectivity
Antenna:  integrated roof antenna
Lighting, Visibility and Instrumentation Features:

Headlamp Type  delay-off aero-composite halogen headlamps Cab Clearance Lights:  cargo bed light
Front Wipers:  variable intermittent wipers
Front Windshield Visor Strip:  front windshield visor strip Tinted Windows:  light-tinted windows
Dome Light:  dome light with fade
Variable IP Lighting:  variable instrument panel lighting Display Type:  analog display
Tachometer:  tachometer
Low Tire Pressure Warning:  tire specific low-tire-pressure warning Trip Computer:  trip computer
Trip Odometer:  trip odometer
Water Temp Gauge:  water temp. gauge
Clock:  in-radio display clock
Systems Monitor:  systems monitor
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Rear Vision Camera:  rear vision camera
Oil Pressure Warning:  oil-pressure warning
Water Temp Warning:  water-temp. warning
Battery Warning:  battery warning
Low Coolant Warning:  low-coolant warning
Lights On Warning:  lights-on warning
Key in Ignition Warning:  key-in-ignition warning
Low Fuel Warning:  low-fuel warning
Low Washer Fluid Warning:  low-washer-fluid warning
Door Ajar Warning:  door-ajar warning
Brake Fluid Warning:  brake-fluid warning
Turn Signal On Warning:  turn-signal-on warning
Transmission Fluid Temperature Warning:  transmission-fluid-temperature warning Safety And Security:

ABS  four-wheel ABS brakes
Number of ABS Channels:  4 ABS channels
Brake Type:  four-wheel disc brakes
Vented Disc Brakes:  front ventilated disc brakes
Daytime Running Lights:  daytime running lights
Spare Tire Type:  full-size spare tire
Spare Tire Mount:  underbody mounted spare tire w/crankdown Driver Front Impact Airbag:  driver and passenger front-impact airbags Driver Side Airbag:  seat-mounted driver and passenger side-impact airbags Overhead Airbag:  curtain 1st and 2nd row overhead airbag Occupancy Sensor:  front passenger airbag occupancy sensor Height Adjustable Seatbelts:  height adjustable front seatbelts Seatbelt Pretensioners:  front seatbelt pre-tensioners
3Point Rear Centre Seatbelt:  3 point rear centre seatbelt Side Impact Bars:  side-impact bars
Tailgate/Rear Door Lock Type:  tailgate/rear door lock included with power door locks Rear Child Safety Locks:  rear child safety locks
Ignition Disable:  immobilizer
Security System:  security system
Panic Alarm:  panic alarm
Electronic Stability:  StabiliTrak w/Proactive Roll Avoidance electronic stability stability control with anti-roll Traction Control:  ABS and driveline traction control
Front and Rear Headrests:  manual adjustable front head restraints Rear Headrest Control:  2 rear head restraints
Seats And Trim:

Seating Capacity  max. seating capacity of 5
Front Bucket Seats:  front bucket seats
Number of Driver Seat Adjustments:  6-way driver and passenger seat adjustments Reclining Driver Seat:  manual reclining driver and passenger seats Driver Height Adjustment:  power height-adjustable driver and passenger seats Driver Fore/Aft:  power driver and passenger fore/aft adjustment Front Centre Armrest Storage:  front centre armrest
Rear Seat Type:  rear full bench seat
Rear Folding Position:  rear seat fold-up cushion
Rear Seat Armrest:  rear seat centre armrest
Leather Upholstery:  cloth front and rear seat upholstery Headliner Material:  full cloth headliner
Floor Covering:  full carpet floor covering
Cabback Insulator:  cabback insulator
Shift Knob Trim:  urethane shift knob
Floor Mats:  carpet front and rear floor mats
Standard Engine:

Engine 308-hp, 3.6-liter V-6 (regular gas)
Standard Transmission:

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Transmission 8-speed automatic w/ OD and auto-manual
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Prepared For: City of Campbell Date 10/22/2020
AE/AM JA8
Unit #
Year 2021 Make Ford Model Ranger
Series XL 4x2 SuperCab 6 ft. box 126.8 in. WB
Vehicle Order Type Ordered Term 60 State CA Customer# 472722 $ 24,596.00 Capitalized Price of Vehicle 1
$ 0.00 * Sales Tax 0.0000% State CA
$ 396.90 * Initial License Fee
$ 0.00 Registration Fee
$ 350.00 Other:Courtesy Delivery Fee
$ 0.00 Capitalized Price Reduction
$ 0.00 Tax on Capitalized Price Reduction
$ 0.00 Gain Applied From Prior Unit
$ 0.00 * Tax on Gain On Prior
$ 0.00 * Security Deposit
$ 0.00 * Tax on Incentive ( Taxable Incentive Total : $0.00 ) All language and acknowledgments contained in the signed quote apply to all vehicles that are ordered under this signed quote.

Order Information
Driver Name
Exterior Color (0 P) Oxford White
Interior Color (0 I) Ebony w/Front Vinyl Bucket Seats
Lic. Plate Type Unknown
GVWR 0
$ 24,946.00 Total Capitalized Amount (Delivered Price)
$ 336.77 Depreciation Reserve @ 1.3500%
$ 73.42 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor) 2 $ 410.19 Total Monthly Rental Excluding Additional Services Additional Fleet Management
Master Policy Enrollment Fees
$ 0.00 Commercial Automobile Liability Enrollment
Liability Limit $0.00
$ 0.00 Physical Damage Management Comp/Coll Deductible 0 / 0 $ 0.00 Full Maintenance Program 3 Contract Miles 0 OverMileage Charge $ 0.00 Per Mile Incl: # Brake Sets (1 set = 1 Axle) 0 # Tires 0 Loaner Vehicle Not Included $ 0.00 Additional Services SubTotal
$ 37.94 Sales Tax 9.2500% State CA
$ 448.13 Total Monthly Rental Including Additional Services $ 4,739.80 Reduced Book Value at 60 Months
$ 400.00 Service Charge Due at Lease Termination
Quote based on estimated annual mileage of 5,000
(Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval)
Notes
Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open - End (Equity) Lease Agreement with respect to such vehicle.

Lessee must maintain insurance coverage on the vehicle as set forth in Section 11 of the Master Open-End (Equity) Lease Agreement until the vehicle is sold.

ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR.

LESSEE City of Campbell

Open-End (Equity) Lease Rate Quote Quote No: 4795482
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) VEHICLE INFORMATION:
2021 Ford Ranger XL 4x2 SuperCab 6 ft. box 126.8 in. WB - US Series ID: R1E
Pricing Summary:

INVOICE MSRP
Base Vehicle $24,075 $24,820.00
Total Options $799.00 $850.00
Destination Charge $1,195.00 $1,195.00
Total Price
SELECTED COLOR:

Exterior: YZ-(0 P) Oxford White
Interior: SH-(0 I) Ebony w/Front Vinyl Bucket Seats
SELECTED OPTIONS:

CODE DESCRIPTION INVOICE MSRP
100A Equipment Group 100A Standard NC NC
126WB 126.8" Wheelbase STD STD
425 50-State Emissions System STD STD
44U Transmission: Electronic 10-Speed SelectShift Auto Included Included 4SPK 4 Speakers Included Included
64A Wheels: 16" Silver Steel Included Included
67F XL Power Equipment Group $334.00 $355.00
67FALM Perimeter Alarm Included Included
86S Tough Bed Spray-In Bedliner $465.00 $495.00
99H Engine: 2.3L EcoBoost Included Included
FOB Remote Key Fob w/Tailgate Lock Included Included
PAINT Monotone Paint Application STD STD
S Front Vinyl Bucket Seats NC NC
SH_03 (0 I) Ebony w/Front Vinyl Bucket Seats NC NC
STDAX 3.73 Axle Ratio Included Included
STDGV GVWR: 6,050 lbs Included Included
STDRD Radio: AM/FM Stereo Included Included
STDTR Tires: P255/70R16 A/S BSW Included Included
SVMIR Power Glass Sideview Mirrors Included Included
YZ_01 (0 P) Oxford White NC NC
$26,069.00 $26,865.00
Open-End (Equity) Lease Rate Quote Quote No: 4795482
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) CONFIGURED FEATURES:

Body Exterior Features:

Number Of Doors  4
Rear Driver Door:  reverse opening rear passenger doors Rear Cargo Door Type:  tailgate
Driver And Passenger Mirror:  power remote manual folding side-view door mirrors Convex Driver Mirror:  convex driver and passenger mirror Door Handles:  black
Front And Rear Bumpers:  black front and rear bumpers with black rub strip Rear Step Bumper:  rear step bumper
Bed Liner:  bed liner
Box Style:  regular
Body Material:  galvanized steel/aluminum body material :  trailering with harness
Grille:  black grille
Convenience Features:

Air Conditioning  manual air conditioning
Power Windows:  power windows with driver 1-touch down
Remote Keyless Entry:  keyfob (front doors) remote keyless entry Illuminated Entry:  illuminated entry
Integrated Key Remote:  integrated key/remote
Auto Locking:  auto-locking doors
Remote Engine Start:  remote engine start - smart device only Steering Wheel:  steering wheel with manual tilting, manual telescoping Day-Night Rearview Mirror:  day-night rearview mirror
Front Cupholder:  front and rear cupholders
Floor Console:  full floor console with covered box
Glove Box:  locking glove box
Driver Door Bin:  driver and passenger door bins
Rear Door Bins:  rear door bins
Dashboard Storage:  dashboard storage
IP Storage:  bin instrument-panel storage
Rear Underseat Storage Tray:  rear underseat storage tray Retained Accessory Power:  retained accessory power
Power Accessory Outlet:  3 12V DC power outlets
Entertainment Features:
radio  AM/FM stereo with seek-scan
Speed Sensitive Volume:  speed-sensitive volume
Speakers:  4 speakers
Internet Access:  FordPass Connect 4G internet access
1st Row LCD:  1 1st row LCD monitor
Wireless Connectivity:  wireless phone connectivity
Antenna:  integrated roof antenna
Lighting, Visibility and Instrumentation Features:

Headlamp Type  delay-off projector beam halogen headlamps Cab Clearance Lights:  cargo bed light
Front Wipers:  variable intermittent wipers
Tinted Windows:  light-tinted windows
Dome Light:  dome light with fade
Variable IP Lighting:  variable instrument panel lighting Display Type:  analog display
Voltometer:  voltmeter
Compass:  compass
Low Tire Pressure Warning:  tire specific low-tire-pressure warning Trip Computer:  trip computer
Trip Odometer:  trip odometer
Front Pedestrian Braking:  pedestrian detection
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Forward Collision Alert:  forward collision
Oil Pressure Gauge:  oil pressure gauge
Water Temp Gauge:  water temp. gauge
Transmission Oil Temp Gauge:  transmission oil temp. gauge Clock:  in-radio display clock
Rear Vision Camera:  rear vision camera
Oil Pressure Warning:  oil-pressure warning
Water Temp Warning:  water-temp. warning
Battery Warning:  battery warning
Lights On Warning:  lights-on warning
Key in Ignition Warning:  key-in-ignition warning
Low Fuel Warning:  low-fuel warning
Door Ajar Warning:  door-ajar warning
Brake Fluid Warning:  brake-fluid warning
Safety And Security:

ABS  four-wheel ABS brakes
Number of ABS Channels:  4 ABS channels
Brake Assistance:  brake assist
Brake Type:  four-wheel disc brakes
Vented Disc Brakes:  front ventilated disc brakes
Daytime Running Lights:  daytime running lights
Spare Tire Type:  full-size spare tire
Spare Tire Mount:  underbody mounted spare tire w/crankdown Driver Front Impact Airbag:  driver and passenger front-impact airbags Driver Side Airbag:  seat-mounted driver and passenger side-impact airbags Overhead Airbag:  Safety Canopy System curtain 1st and 2nd row overhead airbag Occupancy Sensor:  front passenger airbag occupancy sensor Height Adjustable Seatbelts:  height adjustable front seatbelts Seatbelt Pretensioners:  front seatbelt pre-tensioners
Side Impact Bars:  side-impact bars
Tailgate/Rear Door Lock Type:  tailgate/rear door lock included with power door locks Ignition Disable:  SecuriLock immobilizer
Security System:  security system
Panic Alarm:  panic alarm
Tracker System:  tracker system
Electronic Stability:  AdvanceTrac w/Roll Stability Control electronic stability stability control with anti-roll Traction Control:  ABS and driveline traction control
Front and Rear Headrests:  manual adjustable front head restraints with tilt Rear Headrest Control:  2 rear head restraints
Seats And Trim:

Seating Capacity  max. seating capacity of 4
Front Bucket Seats:  front bucket seats
Number of Driver Seat Adjustments:  4-way driver and passenger seat adjustments Reclining Driver Seat:  manual reclining driver and passenger seats Driver Lumbar:  manual driver and passenger lumbar support Driver Height Adjustment:  manual height-adjustable driver and passenger seats Driver Fore/Aft:  manual driver and passenger fore/aft adjustment Front Centre Armrest Storage:  front centre armrest
Removeable Rear Seats:  removeable rear seat
Rear Seat Type:  rear full bench seat
Rear Folding Position:  rear seat fold-up cushion
Leather Upholstery:  vinyl front and rear seat upholstery Headliner Material:  full cloth headliner
Floor Covering:  full vinyl/rubber floor covering
Cabback Insulator:  cabback insulator
Shift Knob Trim:  urethane shift knob
Interior Accents:  chrome interior accents
Standard Engine:

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Engine 270-hp, 2.3-liter I-4 (regular gas)
Standard Transmission:

Transmission 10-speed automatic w/ OD and PowerShift automatic Printed On 10/22/2020 02:19:38 PM Page 5 of 5

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Prepared For: City of Campbell Date 10/22/2020
AE/AM JA8
Unit #
Year 2021 Make Ford Model Ranger
Series XL 4x2 SuperCab 6 ft. box 126.8 in. WB
Vehicle Order Type Ordered Term 60 State CA Customer# 472722 $ 26,096.00 Capitalized Price of Vehicle 1
$ 0.00 * Sales Tax 0.0000% State CA
$ 416.40 * Initial License Fee
$ 0.00 Registration Fee
$ 350.00 Other:Courtesy Delivery Fee
$ 0.00 Capitalized Price Reduction
$ 0.00 Tax on Capitalized Price Reduction
$ 0.00 Gain Applied From Prior Unit
$ 0.00 * Tax on Gain On Prior
$ 0.00 * Security Deposit
$ 0.00 * Tax on Incentive ( Taxable Incentive Total : $0.00 ) All language and acknowledgments contained in the signed quote apply to all vehicles that are ordered under this signed quote.

Order Information
Driver Name
Exterior Color (0 P) Oxford White
Interior Color (0 I) Ebony w/Front Vinyl Bucket Seats
Lic. Plate Type Government
GVWR 0
$ 26,446.00 Total Capitalized Amount (Delivered Price)
$ 357.02 Depreciation Reserve @ 1.3500%
$ 77.68 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor) 2 $ 434.70 Total Monthly Rental Excluding Additional Services Additional Fleet Management
Master Policy Enrollment Fees
$ 0.00 Commercial Automobile Liability Enrollment
Liability Limit $0.00
$ 0.00 Physical Damage Management Comp/Coll Deductible 0 / 0 $ 0.00 Full Maintenance Program 3 Contract Miles 0 OverMileage Charge $ 0.00 Per Mile Incl: # Brake Sets (1 set = 1 Axle) 0 # Tires 0 Loaner Vehicle Not Included $ 0.00 Additional Services SubTotal
$ 40.21 Sales Tax 9.2500% State CA
$ 474.91 Total Monthly Rental Including Additional Services $ 5,024.80 Reduced Book Value at 60 Months
$ 400.00 Service Charge Due at Lease Termination
Quote based on estimated annual mileage of 5,000
(Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval)
Notes
Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open - End (Equity) Lease Agreement with respect to such vehicle.

Lessee must maintain insurance coverage on the vehicle as set forth in Section 11 of the Master Open-End (Equity) Lease Agreement until the vehicle is sold.

ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR.

LESSEE City of Campbell

Open-End (Equity) Lease Rate Quote Quote No: 4795077
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Aftermarket Equipment Total
Description (B)illed or (C)apped Price
Estimated cost for radio and lights C $ 1,500.00
Total Aftermarket Equipment Billed $ 0.00
Total Aftermarket Equipment Capitalized $ 1,500.00
Aftermarket Equipment Total $ 1,500.00
Open-End (Equity) Lease Rate Quote Quote No: 4795077
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) VEHICLE INFORMATION:
2021 Ford Ranger XL 4x2 SuperCab 6 ft. box 126.8 in. WB - US Series ID: R1E
Pricing Summary:

INVOICE MSRP
Base Vehicle $24,075 $24,820.00
Total Options $799.00 $850.00
Destination Charge $1,195.00 $1,195.00
Total Price
SELECTED COLOR:

Exterior: YZ-(0 P) Oxford White
Interior: SH-(0 I) Ebony w/Front Vinyl Bucket Seats
SELECTED OPTIONS:

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) CONFIGURED FEATURES:

Body Exterior Features:

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Forward Collision Alert:  forward collision
Oil Pressure Gauge:  oil pressure gauge
Water Temp Gauge:  water temp. gauge
Transmission Oil Temp Gauge:  transmission oil temp. gauge Clock:  in-radio display clock
Rear Vision Camera:  rear vision camera
Oil Pressure Warning:  oil-pressure warning
Water Temp Warning:  water-temp. warning
Battery Warning:  battery warning
Lights On Warning:  lights-on warning
Key in Ignition Warning:  key-in-ignition warning
Low Fuel Warning:  low-fuel warning
Door Ajar Warning:  door-ajar warning
Brake Fluid Warning:  brake-fluid warning
Safety And Security:

ABS  four-wheel ABS brakes
Number of ABS Channels:  4 ABS channels
Brake Assistance:  brake assist
Brake Type:  four-wheel disc brakes
Vented Disc Brakes:  front ventilated disc brakes
Daytime Running Lights:  daytime running lights
Spare Tire Type:  full-size spare tire
Spare Tire Mount:  underbody mounted spare tire w/crankdown Driver Front Impact Airbag:  driver and passenger front-impact airbags Driver Side Airbag:  seat-mounted driver and passenger side-impact airbags Overhead Airbag:  Safety Canopy System curtain 1st and 2nd row overhead airbag Occupancy Sensor:  front passenger airbag occupancy sensor Height Adjustable Seatbelts:  height adjustable front seatbelts Seatbelt Pretensioners:  front seatbelt pre-tensioners
Side Impact Bars:  side-impact bars
Tailgate/Rear Door Lock Type:  tailgate/rear door lock included with power door locks Ignition Disable:  SecuriLock immobilizer
Security System:  security system
Panic Alarm:  panic alarm
Tracker System:  tracker system
Electronic Stability:  AdvanceTrac w/Roll Stability Control electronic stability stability control with anti-roll Traction Control:  ABS and driveline traction control
Front and Rear Headrests:  manual adjustable front head restraints with tilt Rear Headrest Control:  2 rear head restraints
Seats And Trim:

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Engine 270-hp, 2.3-liter I-4 (regular gas)
Standard Transmission:

Transmission 10-speed automatic w/ OD and PowerShift automatic Printed On 10/22/2020 02:18:02 PM Page 6 of 6

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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Prepared For: City of Campbell Date 10/22/2020
AE/AM JA8
Unit #
Year 2021 Make Ford Model F-250
Series XL 4x2 SD Super Cab 8 ft. box 164 in. WB SRW
Vehicle Order Type Ordered Term 60 State CA Customer# 472722 $ 35,649.50 Capitalized Price of Vehicle 1
$ 0.00 * Sales Tax 0.0000% State CA
$ 643.75 * Initial License Fee
$ 0.00 Registration Fee
$ 350.00 Other:Courtesy Delivery Fee
$ 0.00 Capitalized Price Reduction
$ 0.00 Tax on Capitalized Price Reduction
$ 0.00 Gain Applied From Prior Unit
$ 0.00 * Tax on Gain On Prior
$ 0.00 * Security Deposit
$ 0.00 * Tax on Incentive ( Taxable Incentive Total : $0.00 ) All language and acknowledgments contained in the signed quote apply to all vehicles that are ordered under this signed quote.

Order Information
Driver Name
Exterior Color (0 P) Oxford White
Interior Color (0 I) Medium Earth Gray w/HD Vinyl 40/20/40 S Lic. Plate Type Government
GVWR 0
$ 35,999.50 Total Capitalized Amount (Delivered Price)
$ 485.99 Depreciation Reserve @ 1.3500%
$ 112.70 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor) 2 $ 598.69 Total Monthly Rental Excluding Additional Services Additional Fleet Management
Master Policy Enrollment Fees
$ 0.00 Commercial Automobile Liability Enrollment
Liability Limit $0.00
$ 0.00 Physical Damage Management Comp/Coll Deductible 0 / 0 $ 0.00 Full Maintenance Program 3 Contract Miles 0 OverMileage Charge $ 0.00 Per Mile Incl: # Brake Sets (1 set = 1 Axle) 0 # Tires 0 Loaner Vehicle Not Included $ 0.00 Additional Services SubTotal
$ 55.38 Sales Tax 9.2500% State CA
$ 654.07 Total Monthly Rental Including Additional Services $ 6,840.10 Reduced Book Value at 60 Months
$ 400.00 Service Charge Due at Lease Termination
Quote based on estimated annual mileage of 5,000
(Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval)
Notes
Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open - End (Equity) Lease Agreement with respect to such vehicle.

Lessee must maintain insurance coverage on the vehicle as set forth in Section 11 of the Master Open-End (Equity) Lease Agreement until the vehicle is sold.

ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR.

LESSEE City of Campbell

Open-End (Equity) Lease Rate Quote Quote No: 4791138
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) Aftermarket Equipment Total
Description (B)illed or (C)apped Price
Stiles Quote 26913 for Dump Insert C $ 6,893.50
Total Aftermarket Equipment Billed $ 0.00
Total Aftermarket Equipment Capitalized $ 6,893.50
Aftermarket Equipment Total $ 6,893.50
Open-End (Equity) Lease Rate Quote Quote No: 4791138
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) VEHICLE INFORMATION:
2021 Ford F-250 XL 4x2 SD Super Cab 8 ft. box 164 in. WB SRW - US Series ID: X2A
Pricing Summary:

INVOICE MSRP
Base Vehicle $34,926 $36,765.00
Total Options $1,543.00 $1,695.00
Destination Charge $1,695.00 $1,695.00
Total Price
SELECTED COLOR:

Exterior: Z1-(0 P) Oxford White
Interior: AS-(0 I) Medium Earth Gray w/HD Vinyl 40/20/40 Split Bench Seat SELECTED OPTIONS:

CODE DESCRIPTION INVOICE MSRP
164WB 164" Wheelbase STD STD
425 50-State Emissions System STD STD
44S Transmission: TorqShift-G 6-Spd Auto w/SelectShift Included Included 546 Trailer Tow Mirrors w/Power Heated Glass Included Included 587 Radio: AM/FM Stereo w/MP3 Player Included Included
600A Order Code 600A NC NC
60B Blind Spot Information System (BLIS) $492.00 $540.00 64A Wheels: 17" Argent Painted Steel Included Included
76R Reverse Sensing System (Fleet) $223.00 $245.00
90L Power Equipment Group $787.00 $865.00
90LACD Accessory Delay Included Included
90LASP Advanced Security Pack Included Included
90LPLK Power Locks Included Included
90LPTL Power Tailgate Lock Included Included
90LPWN Power Front & Rear Seat Windows Included Included 90LRKE Remote Keyless Entry Included Included
942 Daytime Running Lamps (DRL) (LPO) $41.00 $45.00
996 Engine: 6.2L 2-Valve SOHC EFI NA V8 Flex-Fuel Included Included A HD Vinyl 40/20/40 Split Bench Seat Included Included
AS_01 (0 I) Medium Earth Gray w/HD Vinyl 40/20/40 Split Bench Seat NC NC PAINT Monotone Paint Application STD STD
STDGV GVWR: 10,000 lb Payload Package Included Included SYNC SYNC Communications & Entertainment System Included Included TD8 Tires: LT245/75Rx17E BSW A/S (4) Included Included
X37 3.73 Axle Ratio Included Included
Z1_01 (0 P) Oxford White NC NC
$38,164.00 $40,155.00
Open-End (Equity) Lease Rate Quote Quote No: 4791138
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Attachment: Council Report & Resolution 12656-Enterprise Equity Lease Agreement, November 2020 (Fleet Vehicle Leasing) CONFIGURED FEATURES:

Body Exterior Features:

Number Of Doors  4
Rear Driver Door:  reverse opening rear passenger doors Rear Cargo Door Type:  tailgate
Driver And Passenger Mirror:  power remote heated manual folding side-view door mirrors with turn signal indicator Convex Driver Mirror:  convex driver and passenger mirror Mirror Type:  manual extendable trailer mirrors
Door Handles:  black
Front And Rear Bumpers:  black front and rear bumpers with black rub strip Rear Step Bumper:  rear step bumper
Front Tow Hooks:  2 front tow hooks
Box Style:  regular
Body Material:  aluminum body material
:  class V trailering with harness, hitch
Grille:  black grille
Convenience Features:

Air Conditioning  manual air conditioning
Air Filter:  air filter
Power Windows:  power windows with driver and passenger 1-touch down Remote Keyless Entry:  keyfob (front doors) remote keyless entry Illuminated Entry:  illuminated entry
Integrated Key Remote:  integrated key/remote
Remote Engine Start:  remote engine start - smart device only Steering Wheel:  steering wheel with manual tilting, manual telescoping Day-Night Rearview Mirror:  day-night rearview mirror
Emergency SOS:  emergency communication system
Front Cupholder:  front and rear cupholders
Overhead Console:  full overhead console with storage
Glove Box:  illuminated locking glove box
Driver Door Bin:  driver and passenger door bins
Rear Door Bins:  rear door bins
Dashboard Storage:  dashboard storage
IP Storage:  covered bin instrument-panel storage
Retained Accessory Power:  retained accessory power
Power Accessory Outlet:  2 12V DC power outlets
Entertainment Features:
radio  AM/FM stereo with seek-scan
Voice Activated Radio:  voice activated radio
Steering Wheel Radio Controls:  steering-wheel mounted audio controls Speakers:  4 speakers
Internet Access:  FordPass Connect 4G internet access
1st Row LCD:  2 1st row LCD monitor
Wireless Connectivity:  wireless phone connectivity
Antenna:  fixed antenna
Lighting, Visibility and Instrumentation Features:

Campbell City CouncilJune 4, 2024

Campbell City Council
June 4, 2024