Campbell City Council
September 15, 2026

City Council Agenda
Campbell Police Department EOC
100 N. First Street, Campbell, California
ATTENTION: This meeting is being held at an alternate location and will not be conducted in the City Hall Council Chambers. Please see meeting location above. Location map will be provided on the City's website Agenda Center with the posting of this agenda.

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 (Xfinity) or Channel 88 (Direct TV), 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] until 12:00 p.m. 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, September 15, 2026 07:00 PM
City Hall Council Chamber
CALL TO ORDER/ROLL CALL
PLEDGE OF ALLEGIANCE
SPECIAL PRESENTATIONS AND PROCLAMATIONS
Please Note: Items listed under Special Presentations and Proclamations are considered ceremonial. The City Council will not take action on these matters.

COMMUNICATIONS AND PETITIONS

1. 2.

3. 4.

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.

Minutes of City Council Special Meeting of September 1, 2026. Page 6 Recommended Action
Approve the special meeting minutes of September 1, 2026.

Minutes of City Council Regular Meeting of September 1, 2026. Page 8 Recommended Action
Approve the regular meeting minutes of September 1, 2026.

Approving Payment of Bills and Claims Page 15
Recommended Action
Approve the bills and claims in the amount of $1,177,106.86.

Resolution Approving the Revised Agreement with Trio
Community Meals, LLC to Provide Catered Meals for the
Senior Nutrition Program for Fiscal Year 2026-27
(Resolution/Roll Call Vote)

Recommended Action
That the City Council adopt a Resolution approving the revised Seventh Amendment to the Agreement with Trio Community Meals, LLC to correct the meal rate for the Senior Nutrition Program for Fiscal Year 2026-27 and authorize the City Manager to execute the Amendment.

5. 6.

7. 7.1

7.2 7.3

7.4 Tuesday, September 15, 2026 2 of 234
Approval of Memorandum of Understanding between City of Campbell and Campbell Police Civilian Employees
Association (Resolution/Roll Call Vote)

Recommended Action
That the City Council adopt a resolution ratifying a successor Memorandum of Understanding, effective July 1, 2026 through June 30, 2028, between the City of Campbell and the Campbell Police Civilian Employees Association (CPCEA).

Water Tower Lighting Request - El Camino Health Page 39 Recommended Action
That the City Council approve El Camino Health’s Water Tower themed lighting request application and direct staff to illuminate the City of Campbell Water Tower pink on October 6, 2026, in recognition of Breast Cancer Awareness Month and to raise awareness of breast cancer.

PUBLIC HEARINGS AND INTRODUCTIONS 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.

Public Hearing to Consider Adoption of an Ordinance
Extending Interim Ordinance No. 26-2354, which Continues implementation of Senate Bill (SB) 450 (2024), as Modified by Assembly Bill (AB) 1061 (2025) (Ordinance/ 4/5 Roll Call Vote).

Recommended Action
It is recommended that the City Council adopt the attached ordinance to extend Interim Ordinance No. 26-2354, for a period for 10 months and 15 days.

NEW BUSINESS
Annual Investment Policy Update FY (2026-27)
(Resolution/Roll Call Vote)

Recommended Action
It is recommended that the City Council adopt a Resolution approving the annual update to the City’s Investment Policy for FY 2026-27.

Proposed Modifications to Council Policy, Section 14, Theatre Page 125

7.5 7.6

8. 8.1

9. 9.1

9.2 Tuesday, September 15, 2026 3 of 234
Use Policy (Resolution/Roll Call Vote)
Recommended Action
That the City Council adopt a resolution approving the proposed modifications to Council Policy, Section 14, Theatre Use Policy, effective September 16, 2026.

Budget Adjustment to Fund Replacement Blackout Shades for the Heritage Theatre (Resolution/Roll Call Vote)

Recommended Action
That the City Council approve the Council Resolution authorizing a budget adjustment to fund the replacement of the remaining six blackout shades at the Heritage Theatre.

Accepting Funds from the Santa Clara County Library District for the Measure O – Campbell Library Renovations Project No. 23-SS (Resolution/Roll Call Vote)

Recommended Action
That the City Council adopt a resolution accepting a $268,388.96 reimbursement from the Santa Clara County Library District for Measure O – Campbell Library Renovations Project and authorizing the Finance Director to perform the associated budget adjustment.

Approval of Cost Share Agreement with the City of San Jose in the Not to Exceed Amount of $335,000 for the Resurfacing of McCoy Avenue and Olympia Avenue (Resolution/Roll Call Vote)

Recommended Action
That the City Council adopt a resolution 1) approving the cost share agreement with the City of San Jose in the not to exceed amount of $335,000 for the resurfacing of McCoy Avenue and Olympia Avenue; 2) authorizing the City Manager to execute said agreement; and 3) authorizing the Finance Director to perform associated budget adjustments.

Authorization to Execute Vehicle Registration Fee-Intelligent Transportation Systems (VRF-ITS) Fund Agreement for
Campbell ITS Mobility and Safety Improvement Project
(Resolution/Roll Call Vote)

Recommended Action
That the City Council adopt a resolution 1) approving the fund agreement with the

9.3 9.4

9.5 9.6
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Santa Clara Valley Transportation Authority (VTA) for the Campbell ITS Mobility & Safety Improvement Project; and 2) authorizing the City Manager to execute the fund agreement and any amendments thereof.

UNFINISHED BUSINESS
COUNCIL COMMITTEE REPORTS
Council Committee Reports Page 233
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://pub-campbell.escribemeetings.com 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.

10. 11.

11.1 12.

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

SPECIAL MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, September 01, 2026 05:30 PM
Campbell Police Department EOC
This City Council meeting was duly noticed pursuant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).

PRESENT:

Mayor Furtado
Vice Mayor Bybee
Councilmember Hines
Councilmember Lopez
ABSENT:

Councilmember Scozzola

1. CALL TO ORDER/ROLL CALL
The City Council of the City of Campbell convened this day in the special meeting place, the Police Department EOC, 100 N. First Street, Campbell, California.

2. PUBLIC COMMENT
There was no public comment.

3. NEW BUSINESS

3.1 Planning Commission Interviews
Recommended Action: That the City Council conduct interviews and appoint one applicant to serve on the Planning Commission for a short-term expiring August 2027.

The City Council conducted interviews with the following applicants: Davis Fields, Danny Truong and Teresa Souto. The applicants were asked a series of questions regarding their qualifications and experience.

The City Council discussed and evaluated each applicant’s responses to the interview Item 7.1
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questions, their qualifications, and experiences in the community as part of the selection process.

After discussion, the City Council motioned to appoint Davis Fields to the Planning Commission.

MOVER Hines
SECONDER Lopez
That the City Council appoint Davis Fields to Planning Commission for a short-term expiring August 2027.

RESULT: ADOPTED [UNANIMOUS] (4 to 0)

4. ADJOURN
Mayor Furtado adjourned the meeting at 6:43 p.m.

APPROVED: Daniel E. Furtado, Mayor
ATTEST: Andrea Sanders, City Clerk
Item 7.1
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CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California

REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, September 01, 2026 07:00 PM
Campbell Police Department EOC
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: https://pubcampbell.escribemeetings.com PRESENT:

Councilmember Hines
Councilmember Lopez
Mayor Furtado
Vice Mayor Bybee
ABSENT:

Councilmember Scozzola

1. CALL TO ORDER/ROLL CALL
The City Council of the City of Campbell convened this day in regular meeting, at the Campbell Police Department EOC, 100 N. First St., Campbell, California.

Roll call was taken and quorum was confirmed.

2. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Jacob's Heart Board Member, Laura Bartels in recognition of Childhood Cancer Awareness Month.

Mayor Furtado presented a Certificate of Appreciation for leading the Pledge.

3. SPECIAL PRESENTATIONS AND PROCLAMATIONS

3.1 Proclamation Declaring the Month of September 2026 as National Item 7.2
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Childhood Cancer Awareness Month
Recommended Action: That the Mayor proclaim September 2026, as National Childhood Cancer Awareness Month in the City of Campbell.

Mayor Furtado claimed the month of September 20226 as National Childhood Cancer Awareness Month in the City of Campbell and presented Jacob's Heart representative a proclamation.

Laura Bartels, Jacob's Heart Board Member accented the proclamation, thanked the City Council for the recognition and spoke of the help and support Jacob's Heart provides to children and their families living with cancer.

Councilmembers expressed their appreciation for the work that Laura and her staff do.

4. COMMUNICATIONS AND PETITIONS
There were no communications and petitions.

5. ORAL REQUESTS
Richard Chamberlain spoke of his ongoing court case and public records requests submitted to the City.

6. COUNCIL ANNOUNCEMENTS
City offices will be closed on Monday, September 7 in observance of the Labor Day holiday.

Police and Emergency services will remain open to the public.

You are invited to the City of Campbell's Annual State of the City Address. Please join me as I share updates on our community, highlight the City's accomplishments over the past year, and discuss the opportunities and priorities that lie ahead. The State of the City Address will be held at the Orchard City Banquet Hall on Wednesday, September 16. Doors will open at 6:00 p.m., with the program beginning promptly at 6:30 p.m. Please RSVP by Wednesday, September 2 by emailing [email protected].

Get Involved in Your Community! Are you passionate about making a difference in Campbell? Explore opportunities to serve on one of our Boards or Commissions. To find out more, contact the City Clerk’s Office at [email protected] or call 408-866- 2117.

Item 7.2
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Let’s come together to protect and preserve one of Campbell’s most cherished natural resources, Los Gatos Creek. Join Councilmember Terry Hines for a hands-on community cleanup at Campbell Park, located near Gilman and Campbell Avenue, and be part of a movement that makes a visible and lasting impact on our environment on Saturday, September 19, 2026 from 9:00 a.m. to 12:00 p.m. Register at www.cleanacreek.org. Please be sure to reference Site No 1. Pre-Registration is required. The Creek Connections Action Group is a consortium of public agencies and organizations, including Valley Water and the West Valley Storm Water Authority, that share the goal of protecting Santa Clara County’s waterways.

Oktoberfest Fun Run will take place this year on Saturday, October 17. Registration is open.

Please visit www.campbellca.gov/recreation to learn more.

7. CONSENT CALENDAR
Mayor Furtado asked if anyone wished to remove an item off the Consent Calendar.

The Consent Calendar was considered as follows:

MOVER Hines
SECONDER Bybee
That the City Council approve the Consent Calendar.

RESULT: ADOPTED [UNANIMOUS] (4 to 0)

7.1 Minutes of City Council Executive Session Meeting of August 18, 2026 MOVER Hines
SECONDER Bybee
Recommended Action: Approve the executive session meeting minutes of August 18, 2026.

RESULT: ADOPTED [UNANIMOUS]
This action approves the executive session meeting minutes of August 18, 2026.

7.2 Minutes of City Council Regular Minutes of August 18, 2026 MOVER Hines
SECONDER Bybee
Item 7.2
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Recommended Action: Approve the regular meeting minutes of August 18, 2026.

RESULT: ADOPTED [UNANIMOUS]
This action approves the regular meeting minutes of August 18, 2026.

7.3 Approving Payment of Bills and Claims
MOVER Hines
SECONDER Bybee
Recommended Action: Approve the bills and claims in the amount of $2,145,540.83.

RESULT: ADOPTED [UNANIMOUS]
This action approves the bills and claims in the amount of $2,145,540,83 as follows:
bills and claims checks dated July 31, 2026, in the amount of $243,816.49; bills and claims checks dated August 3, 2026, in the amount of $168,207.65; bills and claims checks dated August 7, 2026, in the amount of $112,888.19; and bills and claims checks dated August 10, 2026, in the amount of $1,620,628.50.

7.4 Monthly Investment Transactions Report- July 2026
MOVER Hines
SECONDER Bybee
Recommended Action: That the City Council review and accept the Monthly Investment Transactions Report for July 2026.

RESULT: ADOPTED [UNANIMOUS]
This action reviews and accepts the Monthly Investment Transactions Report for July 2026.

7.5 Monthly Treasurer’s Report (July 2026)
MOVER Hines
SECONDER Bybee
Recommended Action: That the City Council review and accept the Monthly Treasurer’s Report for the month ended July 31, 2026.

RESULT: ADOPTED [UNANIMOUS]
This action reviews and accepts the Monthly Treasurer's Report for the month ended July 31, 2026.

8. PUBLIC HEARINGS AND INTRODUCTIONS OF ORDINANCES
Item 7.2
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There were no public hearings and introductions of Ordinances.

9. NEW BUSINESS

9.1 Response to Santa Clara County Civil Grand Jury Report Regarding the Santa Clara Valley Transportation Authority (”VTA”)
Recommended Action: That the City Council authorize the Mayor to submit a letter as the City’s response to the 2025-2026 Santa Clara County Civil Grand Jury Report titled, "VTA’s Management and Oversight of BART Silicon Valley Phase II." Assistant City Manager Gaeta presented a staff report dated September 1, 2026.

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

There were no public speakers.

After discussion, the City Council motioned for approval of item 9.1.

MOVER Lopez
SECONDER Bybee
That the City Council authorize the Mayor to submit a letter as the City’s response to the 2025-2026 Santa Clara County Civil Grand Jury Report titled, "VTA’s Management and Oversight of BART Silicon Valley Phase II." RESULT: ADOPTED [UNANIMOUS] (4 to 0)

9.2 Response to 2025-2026 Civil Grand Jury Report on Pothole Damage Claims Processes
Recommended Action: That the City Council authorize the Mayor to submit, on behalf of the City Council, the attached letter as the City’s response to the 2025-2026 Santa Clara County Civil Grand Jury Report, “Pothole Damage: Improving claims processes within Santa Clara County.”
Finance Director Fuentes presented a staff report dated September 1, 2026.

Following City Council questions, Mayor Furtado asked if anyone from the public wished to speak.

There were no public speakers.

Item 7.2
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After discussion, the City Council motioned for approval of Item 9.2.

MOVER Hines
SECONDER Bybee
That the City Council authorize the Mayor to submit, on behalf of the City Council, the attached letter as the City’s response to the 2025-2026 Santa Clara County Civil Grand Jury Report, “Pothole Damage: Improving claims processes within Santa Clara County.”
RESULT: ADOPTED [UNANIMOUS] (4 to 0)

9.3 Authorization To Execute Low Carbon Transportation and Operations Program (LCTOP) Fund Agreement (Resolution/Roll Call Vote) Recommended Action: Adoption of a Resolution for Authorization to Execute Low Carbon Transportation and Operations Program (LCTOP) Fund Agreement for Transit Reliability Improvement and Performance System (TRIPS) Project.

Public Works Director Olay presented a staff report September 1, 2026.

Following City Council questions, Mayor Furtado asked if anyone from the public wished to speak.

There were no public comments.

After discussion, the City Council motioned for approval of Item 9.3.

MOVER Lopez
SECONDER Bybee
That the City Council adopt Resolution 26-13432 for Authorization to Execute Low Carbon Transportation and Operations Program (LCTOP) Fund Agreement for Transit Reliability Improvement and Performance System (TRIPS) Project.

RESULT: ADOPTED [UNANIMOUS] (4 to 0)

10. UNFINISHED BUSINESS
There was no unfinished business.

Item 7.2
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11. COUNCIL COMMITTEE REPORTS

11.1 Council Committee Reports
That the City Council report on activities from their committee assignments.

Councilmember Bybee attended an informational meeting sponsored by Bay Area Air District with Mayor Furtado; Campbell Museum and Ainsley Huse Foundation meeting and, noted their 9/26 fundraiser Groovy in the Garden Flashback.

Councilmember Lopez attended a special meeting of the Santa Clara Valley Transportation Board of Directors.

Councilmember Hines attended a meeting of Silicon Valley Clean Energy Finance Audit Committee; Susan Elleberg's District 4 First 5 Annual Celebration; Sam Licardo's Local City discussion; Santa Clara Valley Water Commission; the Campbell Chamber Golf Tournament; spoke of the upcoming Coastal Clean up; and gave a business shout out to Sam's Cleaners.

Mayor Furtado attended the Santa Clara Valley Transportation Authority Policy Advisory Committee meeting.

12. ADJOURN
Mayor Furtado adjourned the meeting at 7:51PM p.m.

APPROVED: Daniel E. Furtado, Mayor
ATTEST: Andrea Sanders, City Clerk
Item 7.2
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City Council Report
DATE: September 15, 2026
TITLE: Approving Payment of Bills and Claims
RECOMMENDED ACTION:

Approve the bills and claims in the amount of $1,177,106.86

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

Type Check Date Amount
Payroll August 13, 2026 $75,881.01
Bills & Claims August 14, 2026 $192,057.09
Bills & Claims August 17, 2026 $406,318.12
Bills & Claims August 24, 2026 $502,850.64
Total $1,177,106.86

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

PREPARED BY: Celia Cruz Deniz, Accounting Clerk II
Item 7.3
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Report Approval Details
Document Title: Approving Bills and Claims 09.15.26.docx Attachments: Payroll 08.13.26.pdf
Bills and Claims 08.14.26.pdf
Bills and Claims 08.17.26.pdf
Bills and Claims 08.24.26.pdf
Final Approval Date: September 09, 2026
This document and all of its attachments were approved and signed as outlined below:

Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
Item 7.3
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City Council Report
DATE: September 15, 2026
TITLE: Resolution Approving the Revised Agreement with Trio Community Meals, LLC to Provide Catered Meals for the Senior Nutrition Program for Fiscal Year 2026-27 (Resolution/Roll Call Vote)
RECOMMENDED ACTION:

That the City Council adopt a Resolution approving the revised Seventh Amendment to the Agreement with Trio Community Meals, LLC to correct the meal rate for the Senior Nutrition Program for Fiscal Year 2026-27 and authorize the City Manager to execute the Amendment.

BACKGROUND
On August 1, 2026, City Council approved the Seventh Amendment to the Agreement with Trio Community Meals, LLC to provide catered meals for the Senior Nutrition Program for Fiscal Year 2026-27. The City subsequently learned of a discrepancy between the per meal rate issued to the County of Santa Clara and the rate included in the City’s agreement with Trio Community Meals, LLC.

DISCUSSION
Trio Community Meals, LLC is an approved caterer by the County of Santa Clara (County) for the Senior Nutrition Program. The cost of the congregate meals is standardized by the agreement between the County and Trio Community Meals, LLC. The negotiated Cost Per Meal for Fiscal Year 2026-27 is $6.10.

The meal cost included in the Seventh Amendment that was approved on August 1, 2026 was $6.58. The revised Seventh Amendment corrects the rate to the negotiated $6.10 per meal for Fiscal Year 2026-27.

FISCAL IMPACT
The revised meal rate of $6.10 represents a reduction of $.48 per meal from the $6.58 rate included in the Seventh Amendment. Based on the anticipated meal volume, the revised rate could result in savings of up to $3,226. Funds have been included in the FY 2026-27 Adopted Budget and are included in the Recreation & Community Services Department, Senior Nutrition Division (Acct. No. 101.525.7432).

Item 7.4
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ALTERNATIVES

1. Do not authorize the City Manager to execute the revised Seventh Amendment to the Agreement with Trio Community Meals, LLC and not be able to provide meals to seniors in need.

2. Do not authorize the City Manager to execute the Seventh Amendment to the Agreement and provide alternative direction to staff.

PREPARED BY: Tina Wong-Erling, Senior Services Supervisor Item 7.4
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Report Approval Details
Document Title: FY 2026-27 Trio Council Revised Report.docx Attachments: Council Resolution Trio Community Meals FY 2026-2027 REVISED.docx
Campbell Adult Center - Amendment #7revised - 2026-07-

01.pdf
Final Approval
Date:

September 09, 2026
This document and all of its attachments were approved and signed as outlined below:

Natasha Bissell, Recreation & Community Services Director Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
Item 7.4
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RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

AUTHORIZING THE CITY MANAGER TO EXECUTE A REVISED SEVENTH

AMENDMENT WITH TRIO COMMUNITY MEALS, LLC TO PROVIDE
CATERED MEALS FOR THE SENIOR NUTRITION PROGRAM FOR FY 26-27 WHEREAS, Trio Community Living, LLC is an approved caterer by the County of Santa Clara (“County”) for the Senior Nutrition Program; and WHEREAS, the cost of congregate meals is standardized pursuant to the agreement between the County and Trio; and
WHEREAS, the negotiated Cost Per Meal for Fiscal Year 2026-27 is $6.10 per meal; and
WHEREAS, on August 1, 2026, the City Council approved the Seventh Amendment to the Agreement with Trio to provide catered meals for the Senior Nutrition Program for Fiscal Year 2026-27; and
WHEREAS, the revised Seventh Amendment corrects the per meal rate from $6.58 to the negotiated rate of $6.10 per meal for Fiscal Year 2026-27.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby authorize the City Manager to execute the revised Seventh Amendment with Trio Community Living, LLC to continue to provide meals for the Senior Nutrition Program for FY 26-27.

PASSED AND ADOPTED this 15th day of September 2026 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:
________________________
Daniel E. Furtado, Mayor
ATTEST:
__________________________
Andrea Sanders, City Clerk
Item 7.4
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AMENDMENT #7 TO THE FOOD SERVICE AGREEMENT
This Amendment is made and entered into by and between Campbell Adult Center (“Client”), and TRIO Community Meals, LLC (“Company”) (collectively “the Parties”).

WHEREAS, the Parties have entered into a certain Food Service Agreement (the “Agreement”), effective July 1, 2019;
WHEREAS, the Parties have agreed to extend the Agreement with a pricing adjustment; and WHEREAS, the Parties now desire to amend said Agreement upon the terms and conditions stated herein.

NOW, THEREFORE, the Parties, intending to be legally bound hereby, mutually agree as follows:

1. Term. This Agreement shall be extended for an additional year beginning July 1, 2026.

2. Payment Arrangement. In consideration for services provided to the Client, Company will charge the Client $6.10 per bulk meal, plus applicable sales tax.

3. Change in Conditions. The financial terms set forth in this Agreement, and all other obligations assumed by Company hereunder, are based on conditions in existence on the date Company commences operations including, without limitation, population; labor costs; tariffs; applicable Governmental Rules; food and supply costs; provision of equipment and utilities; state of the Premises; and federal, state and local sales, use and excise taxes (the “Conditions”). Further, Client acknowledges that in connection with the negotiation and execution of this Agreement, Company has relied upon Client’s representations regarding existing and future conditions (the “Representations”). In the event of change in the Conditions, inaccuracy of the Representations, or if Client requests any significant change in the Food Services as provided under this Agreement, the financial terms and other obligations assumed by Company shall be renegotiated to reflect a proportionate increase in Company’s charges to the Client. Company will provide a thirty (30) day notice of such increased charges.

4. All capitalized terms not defined herein shall have the meanings given to such terms in the Agreement.

5. To the extent there is any inconsistency between the Agreement and this Amendment, the provisions of this Amendment shall prevail with respect to matters expressly set forth in this Amendment, and the Agreement shall prevail with respect to all other matters. No representations, inducements, or agreements, oral or in writing, between the parties with respect to such matters, unless contained in the Agreement or this Amendment, shall be of any force or effect.

6. Except as expressly amended herein, all other terms of the Agreement are hereby ratified and confirmed and will continue in full force and effect, and the parties hereby ratify and confirm the terms of the Agreement, as modified by this Amendment.

7. Counterparts; Electronic Delivery. This Amendment may be signed in one or more counterparts, each of which shall be deemed an original, and all of which shall constitute one and the same document with the same effect as if such signatures were upon the same instrument.

Counterparts may be delivered via facsimile, electronic mail (including PDF or any electronic Item 7.4
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signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com), or other transmission method, and any counterpart so delivered will be deemed to have been duly and validly delivered and be valid and effective for all purposes. This Amendment may be executed electronically.

This Amendment is effective as of July 1, 2026.

CLIENT: Campbell Adult Center COMPANY: TRIO Community Meals, LLC Signature: Signature:

Name: Name: John Kirk
Title: Title: President
Date: Date:

Item 7.4
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City Council Report
DATE: September 15, 2026
TITLE: Approval of Memorandum of Understanding between City of Campbell and Campbell Police Civilian Employees Association (Resolution/Roll Call Vote)
RECOMMENDED ACTION:

That the City Council adopt a resolution ratifying a successor Memorandum of Understanding, effective July 1, 2026 through June 30, 2028, between the City of Campbell and the Campbell Police Civilian Employees Association (CPCEA).

BACKGROUND
The City Council retains sole authority to enter into a Memorandum of Understanding (MOU) with recognized collective bargaining units. In turn, MOU negotiations are governed by the Meyer-Milias-Brown Act (MMBA), found at Government Code Section 3500, et. seq. The MMBA requires local agencies to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized collective bargaining units. The MMBA further requires that the City fully consider proposals made by collective bargaining units’ representatives before determining policy or course of action.

Currently, the City and CPCEA are operating pursuant to the terms of a Side Letter Agreement that extended a June 2022 MOU between the parties through June 30, 2026.

The June 2022 MOU was originally set to expire on June 30, 2025.

In the fall of 2024, in anticipation of a budget deficit for Fiscal Year 25/26, the City placed on the local ballot a general half-cent sales tax known as “Measure K.” On November 5, 2024, Campbell voters overwhelmingly passed Measure K. Then, on January 6, 2025, just as the City began to prepare for labor negotiations with its bargaining units, the Silicon Valley Taxpayers’ Association and David H. Wolen (together, “SVTA”) filed a lawsuit against the City challenging the validity of Measure K. As a result of the lawsuit, the tax revenue scheduled to be collected beginning in April 2025 was required to be held in an escrow account pending the outcome of the lawsuit and the City cannot access the tax revenue unless and until said lawsuit is resolved in the City's favor.

By March 2025, the City was forecasted to face a budget deficit in Fiscal Year 25/26 of $3.17 million and in June 2025, CPCEA agreed to defer a Cost of Living Adjustment (COLA) for twelve months and extend the June 2022 MOU through June 30, 2026.

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While the City has successfully defended against the Measure K lawsuit at the Superior Court level, SVTA appealed the court’s decision to the Court of Appeals and the Measure K litigation is ongoing.

In anticipation of the June 30, 2026, MOU expiration date and in light of the appeal in the Measure K litigation, the City Council met with its negotiation team to discuss a successor MOU and to provide authority and direction. With a forecasted budget deficit for Fiscal Year 26/27 of $2.7 million, the City Council directed the team to negotiate a successor MOU with CPCEA that would provide compensation adjustments for employees that were sustainable and could reasonably and temporarily be supported with the use of reserve funds until the Measure K litigation is resolved.

DISCUSSION
Between March and September 2026, the City’s negotiation team met and conferred in good faith with representatives from CPCEA. On August 31, 2026, the parties reached a tentative agreement that would cover the period from July 1, 2026, through June 30, 2028.

The tentative agreement includes a 3% annual salary adjustment for each year of the two-year term. With regard to the period of July 1, 2025 through June 30, 2026, when the members of CPCEA did not receive a COLA, the tentative agreement includes a retroactive 3% salary adjustment. The tentative agreement also includes a commitment by the City to cover up to an 8% increase in health premiums for Health Plan Years 2027 and 2028, a modification to the existing Healthy Lifestyle stipend to allow for members to take classes outside of the City of Campbell, and an increase in the members’ meal allowance from $10.60 to $16 per meal. Lastly, the tentative agreement adds the reclassified “Crime Analyst” to the MOU and provides for Working Out of Class pay for Record Specialists performing Property and Evidence Specialist duties, as indicated.

FISCAL IMPACT
The Fiscal Year 26/27 budget adopted by the City Council on June 16, 2026, does not include the costs associated with the tentative agreement and the City Council will need to approve the use of reserve funds to cover the cost. The net fiscal impact of the proposed MOU, including the cost of the salary increases and benefits, is estimated at $87,300 for Fiscal Year 25/26 and $189,400 for Fiscal Year 26/27. The latter amount will be included in future mid-year adjustments brought to Council for Fiscal Year 26/27.

ALTERNATIVES

1. Not approve the MOU.

2. Approve the MOU with modifications.

PREPARED BY: Angelique Gaeta, Assistant City Manager
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Report Approval Details
Document Title: Approval of Memorandum of Understanding Between City of Campbell and Campbell Police Civilian Employees Association .docx
Attachments: Resolution - CPOA 2026 Approving MOU 08.18.2026.doc CPCEA MOU_2026-2028_09.04.2026_FINAL DRAFT.pdf
Final Approval
Date:

September 09, 2026
This document and all of its attachments were approved and signed as outlined below:

Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
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RESOLUTION NO. _____

A RESOLUTION OF THE CITY OF CAMPBELL CITY COUNCIL AMENDING THE COMPENSATION AND WORKING CONDITIONS FOR CLASSIFIED NONMANAGEMENT EMPLOYEES REPRESENTED BY

THE CAMPBELL POLICE CIVILIAN EMPLOYEES ASSOCIATION (CPCEA) WHEREAS, the Campbell Police Civilian Employees Association (CPCEA) is a recognized employee organization representing employees; and
WHEREAS, the City of Campbell (City) City Council retains sole authority to enter into a Memorandum of Understanding (MOU) with recognized employee organizations representing employees; and
WHEREAS, the City is currently operating pursuant to a June 2022 MOU, extended by agreement of the parties through June 30, 2026; and
WHEREAS, the City Council’s negotiation team and CPCEA representatives have reached and authorized a tentative agreement on the terms of a successor MOU for salaries, benefits and working conditions; and
WHEREAS, the City has satisfied its obligation under Government Code Section 3500, et. seq., and under the City’s Employer-Employee Relations Resolution No. 10016 to meet and confer over the terms and conditions of employment contained in the recommended successor MOU with CPCEA; and
WHEREAS, the MOU has been presented to the City Council for consideration and ratification and is attached hereto and made a part hereof; and WHEREAS, the City Council of the City of Campbell desires to ratify and adopt the provisions included in the successor MOU;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Campbell does hereby approve and ratify the successor Memorandum of Understanding (MOU) between the City and CPCEA, attached hereto and made a part hereof; and BE IT FUTHER RESOLVED that the terms and conditions of the successor MOU shall be in full force and effect from July 1, 2026 through June 30, 2028, except as specified otherwise in the MOU; and
BE IT FURTHER RESOLVED that the City Appointing Power and the Human Resources Manager have the authority to take any necessary administrative actions to implement the provisions of this resolution.

PASSED AND ADOPTED this 15th day of September 2026, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

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ABSENT: Councilmembers:

APPROVED:

Daniel E. Furtado, Mayor
ATTEST:

Andrea Sanders, City Clerk
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MEMORANDUM OF UNDERSTANDING ON

WAGES, EMPLOYEE BENEFITS, HOURS AND

OTHER TERMS AND CONDITIONS OF EMPLOYMENT
Campbell Police Civilian Employees Association (CPCEA)

PARTIES TO UNDERSTANDING
This Memorandum of Understanding is between the authorized representatives of the City Council of the City of Campbell, hereinafter referred to as "City," and the authorized representatives of Campbell Police Civilian Employees Association, hereinafter referred to as “CPCEA”.

STATE LAW COMPLIANCE
This Memorandum of Understanding complies with the provisions of the State of California Public Employees Representation Law, as contained in Section 3500 of the Government Code of the State in that the employer-employee representatives noted here did meet and confer in good faith and did reach agreement on those matters within the scope of representation.

This Memorandum of Understanding also complies with Resolution 10016, relating to employer-employee relations, as adopted and amended by the City Council of the City of Campbell.

I. GENERAL CONDITIONS
A. Representation
CPCEA is recognized by the City as the authorized representative of the following classifications:
• Communications Supervisor
• Police Records Specialist
• Police Records Supervisor
• Public Safety Dispatcher
• Community Services Officer
• Property/Evidence Specialist
• Crime Analyst
B. Personnel Rules and Regulations
This Memorandum of Understanding does not modify or change the provisions of the Personnel Rules and Regulations of the City unless a specific reference is made herein to modify or add to the existing Personnel Rules and Item 7.5
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CPCEA MOU
July 1, 2026 – June 30, 2028

Regulations. Because additional terms and conditions of employment are set forth in the Personnel Rules and Regulations, for the parties’ convenience, the Personnel Rules and Regulations can be found at:
https://www.campbellca.gov/DocumentCenter/View/19738/City-of-CampbellRules-and-Regulations.

C. Terms of Understanding
This Memorandum of Understanding embodies all modifications on salaries, hours, employee benefits, and other terms and conditions of employment, for a 24-month term beginning July 1, 2026 and ending June 30, 2028.

D. Existing Benefits Continued
This Memorandum of Understanding does not modify existing salaries, benefits, hours, or terms and conditions of employment contained in the currently adopted City of Campbell Position Classification and Salary Schedule, except as noted herein. For the parties’ convenience, the schedule can be found at https://www.campbellca.gov/144/Salary-Benefits. Such benefits and terms of employment remain unmodified and shall continue in full force and effect throughout the term of this Memorandum of Understanding.

E. Release Time – Meet and Confer
Employees who are members of the CPCEA negotiating team who are required to attend a meet and confer or meet and consult session during duty hours will be given one hour of release time before and one hour of release time after each session. Members of the CPCEA negotiating team, with their supervisor’s approval, may schedule an equivalent amount of release time at times other than before or after a meet and confer session.

II. COMPENSATION & ADJUSTMENTS
A. Fiscal Year 2026 Retroactive Cost of Living Adjustment (COLA) Effective retroactive to July 1, 2025, the base salaries of all classifications represented by CPCEA shall be increased by three percent (3%). In addition, all employees in classifications represented by CPCEA shall receive a one-time lump sum payment reflecting a retroactive three percent (3%) COLA for the period covering the first full pay period in July 2025 through the last full pay period in June 2026, by no later than the second pay period in November 2026.

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CPCEA MOU
July 1, 2026 – June 30, 2028

B. Salary

1. As a result of a Total Compensation Analysis performed by the City in August 2026, effective the first full pay period in July 2026, the salaries of all classifications represented by CPCEA shall be increased by three percent (3%). The Total Compensation Analysis was performed for all CPCEA benchmark classifications, using the established benchmark agencies and compensation components noted in subsection “L.” of “Section III. Health & Welfare Benefit Programs,” below. All employees in classifications represented by CPCEA shall also receive a one-time lump sum payment reflecting a retroactive three percent (3%) COLA for the period covering the first full pay period in July 2026 through the date of implementation of the 3% COLA, by no later than the second pay period in November 2026.

2. Effective the first full pay period in July 2027, the salaries of all classifications represented by CPCEA shall be increased by three percent (3%).

III. HEALTH & WELFARE BENEFIT PROGRAMS
A. Benefit Cost Adjustments
The benefit cost adjustments for the term of this contract are as follows:
• The City will be responsible for any increase to the PERS employer contribution rate on the PERS plan.
• The City will continue to provide for the current dental coverage, including an annual maximum per patient benefit of $2,500, and orthodontia coverage with a $2,500 per patient lifetime.
• The City will provide life insurance.
• The City will provide the Employee Assistance Program. • The City will continue to provide for Long Term Disability Insurance. The maximum benefit is $3,000 per month.
• The City will provide for Vision Service Plan (VSP) coverage.

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CPCEA MOU
July 1, 2026 – June 30, 2028

B. Medical Insurance / Cafeteria Plan Allowance

1. Medical Insurance Benefit
The City’s maximum monthly contribution for each eligible bargaining unit member for the purchase of medical insurance will be equal to the minimum monthly employer contribution required under the Public Employees Medical and Hospital Care Act (PEMHCA). The City’s contribution will come out of the amount the City currently contributes to employees as part of the Cafeteria Plan Allowance, provided below. The cost of the City’s participation in CalPERS will not require the City to expend additional funds toward health insurance beyond what is already provided through the Cafeteria Plan Allowance. Any cost increase to the minimum monthly employer contribution required under PEMCHA will be borne by employees.

2. Cafeteria Plan Allowance
Bargaining unit members electing medical coverage in the City’s plans will receive a health flex allowance and shall purchase such coverage through the City’s Cafeteria Plan.

Effective January 1, 2026, the monthly Cafeteria Plan Allowance is based on selected level of coverage as follows:
• Employee Only Coverage: $1,151.05
• Employee Plus One Coverage: $2,302.10
• Employee Plus Family Coverage: $2,992.72
Effective January 1, 2027, the monthly Cafeteria Plan Allowance will be set at the Kaiser Permanente Region 1 rates for 2027 at the employee’s selected level of coverage unless the 2027 rates are eight percent (8%) higher than the City’s 2026 contribution. If the year-over-year rate increase exceeds 8% of the City’s 2026 contribution, the City’s Cafeteria Plan Allowance shall be eight percent (8%) higher than the City’s 2026 contribution. Employees who select a plan with rates higher than the City’s Allowance will be required to make up the difference through salary redirection.

Effective January 1, 2028, the monthly Cafeteria Plan Allowance will be set at the Kaiser Permanente Region 1 rates for 2028 at the employee’s selected level of coverage unless the 2028 rates are eight percent (8%) higher than the City’s 2027 contribution. If the year-over-year rate increase exceeds 8% of the City’s 2027 contribution, the City’s Cafeteria Plan Allowance shall be eight percent (8%) higher than the City’s 2027 contribution. Employees who select a plan with rates higher than the City’s Item 7.5
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CPCEA MOU
July 1, 2026 – June 30, 2028

Allowance will be required to make up the difference through salary redirection.

Employees who elect a medical insurance plan with a lower monthly premium than the amount of the City’s medical contribution may apply their unused contribution amount toward other benefit options that are available under the Cafeteria Plan, such as flexible spending accounts for out-of-pocket medical expenses and dependent care, accident insurance, cancer insurance, heart and stroke insurance, and life insurance benefits.

Employees who do not spend all their Cafeteria Plan Allowance on Cafeteria Plan benefits will not receive any cash benefit.

3. Conditional Opt-Out
Employees who at initial enrollment or during the annual open enrollment period complete an affidavit and provide proof of other minimum essential coverage for themselves under an exchange/marketplace or an individual plan will be allowed to waive medical coverage for themselves and their qualified dependents (tax family). The monthly conditional opt-out incentive is $750.

The conditional opt-out incentive shall be paid in cash (taxable income) to the employee. The employee must notify the City within 30 days of the loss of other minimum essential coverage. The conditional opt-out payment shall no longer be payable if the employee and family members cease to be enrolled in other minimum essential coverage.

C. Retiree Award Program
The City will continue the existing Retiree Award Program continuing the following criteria and features:
• Minimum retirement age of 50 and retired from the City of Campbell. • Bills must be submitted to the City in January and July of each year for reimbursement for the prior six months’ costs.
• Award will not exceed cost for medical coverage for the retiree only (not dependents) on a reimbursement basis, as follows:
- For employees who have completed at least 17 years of service with the City of Campbell, award will be a maximum of $325 per month. • All other provisions of the Retiree Award Program will remain unchanged.

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CPCEA MOU
July 1, 2026 – June 30, 2028

• Employees hired on or after January 1, 2018, will not be eligible for the Retiree Award Program.

D. Deferred Compensation
The City will continue to contribute $22 per pay period to each full-time CPCEA employee’s 457 Deferred Compensation account.

E. Uniform Allowance
The City will continue to provide a uniform allowance for Police Records Specialists, the Police Records Supervisor, Property/Evidence Specialist, of $655/year and Community Services Officer of $740/year.

F. Holiday Pay/Floating Holidays
CPCEA agrees to forego paid holidays off in exchange for holiday pay in the form of 4.8% in lieu pay.

Members are entitled to sixteen (16) hours of Floating Holiday pay per year.

New employees receive the appropriate prorated portion of this entitlement upon hire. Floating holidays must be used during the year in which they are granted. Unused floating holiday time may not be carried over to the next calendar year. Floating holiday time shall have no value upon termination of employment.

G. Trainer Pay
Police Records Specialists, Public Safety Dispatchers, Community Services Officers and Property/Evidence Specialists will receive five percent (5%) differential pay when assigned by their Supervisor to train a new employee for a period of time of at least 1 hour per occurrence. In order to qualify for this pay, the trainer must complete all required training logs and evaluation forms as designated by the Department. Police Records Specialists, Public Safety Dispatchers, Community Services Officers and Property/Evidence Specialists will receive five percent (5%) differential pay for the period of time they are assigned to and actually engaged in developing training materials or designing or coordinating a training program. A minimum of one hour per occurrence must be spent in these activities to be eligible for Trainer Pay.

H. Tuition Reimbursement
The City will continue to provide the tuition reimbursement program as specified in Personnel Rules and Regulations, Section 18.3.A, with a maximum reimbursement of $3000 per year. CPCEA members will be able to use tuition reimbursement money to attend certificated relevant work-related training that Item 7.5
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CPCEA MOU
July 1, 2026 – June 30, 2028

is approved by the administration. Reimbursement will include tuition and class participation materials only.

I. Bilingual Pay
The City will provide CPCEA bilingual pay of $100 per pay period.

J. Vacation Buy Back
Employees may convert once per year, unused vacation time for payment subject to the following conditions:

1. The employee must have a minimum of 120 hours of accrued vacation immediately prior to a conversion.

2. Any payment for accrued vacation hours will be subject to taxes as determined by law.

3. Minimum exchange will be one day.

4. All exchanges are irrevocable.

5. A minimum of 40 hours of vacation leave must be previously used prior to conversion.

K. Voluntary Employees’ Beneficiary Association (VEBA)
The City will continue to contribute $71.16 per pay period to each CPCEA employee’s VEBA account.

L. Benchmarks
Comparable salary and benefit data is gathered from Campbell’s survey agencies to determine how Campbell benchmark classifications compare with comparable positions in our survey agencies.

Benchmark Classifications
Dispatcher
Community Services Officer
Records Specialist
Property and Evidence Specialist
Any special compensation adjustment for a benchmark classification will also be provided to classifications related to the benchmark as set forth below:

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CPCEA MOU
July 1, 2026 – June 30, 2028

Dispatcher
Communications Supervisor
Records Specialist
Police Records Supervisor
Crime Analyst
Survey Agencies
Cupertino
Gilroy
Los Altos
Los Gatos
Milpitas
Morgan Hill
Mountain View
Palo Alto
Santa Clara
Saratoga
Sunnyvale
The compensation components to be used for the Total Compensation analysis shall be as follows: Salary Min, Salary Max, Dental, Life, Vision, Medical, LTD, and Medicare.

The City agrees to use Records Specialist II for City of Santa Clara and Records Technician II for City of Gilroy and Police Clerk II for City of Milpitas for total comp purposes in this contract for comparing Police Records Specialist in Campbell.

The City agrees to use Public Safety Dispatcher II for City of Santa Clara for total comp purposes in this contract for comparing Public Safety Dispatcher in Campbell.

M. Healthy Life-Style Reimbursement
The City will provide for CPCEA a healthy lifestyle reimbursement with the following provisions:

1. Eligibility:
a. Employee, spouse and dependents.
b. Any recreation class/program/event offered through this Memorandum of Understanding period.

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CPCEA MOU
July 1, 2026 – June 30, 2028

2. Amount:
a. A maximum of $2,400 per each fiscal year of this Memorandum of Understanding for the entire CPCEA group.
b. Reimbursement shall be authorized by at least two CPCEA Board Members and final approval through Human Resources.

N. POST/Educational Incentive Pay
The City will pay Public Safety Dispatchers possessing the following certifications based on the regulations set forth by POST:
• POST Dispatcher Intermediate Certificate - $50 per pay period • POST Dispatcher Advanced Certificate - $100 per pay period In the event an eligible certification becomes a “requirement” of a job class specification (such as through changes in State or Federal requirements), the appropriate Department Head will notify Human Resources (HR) and HR subsequently will notify CPCEA of any changes in certification pay.

O. Compensatory Time
At the discretion of the department head, compensatory time shall be granted to eligible classified non-management employees. Such compensatory time is to be on a time and one-half basis except as provided for in Section 17.0 of the Personnel Rules and Regulations and will be governed by the following provisions.

1. Compensatory time earned by an employee who is required to work in excess of the normal workweek shall be recorded in actual hours worked on the employee's timecard and submitted to the Finance Department.

2. The maximum accumulation of compensatory time is as follows:

For employees represented by CPCEA, compensatory time shall not be allowed to accumulate in excess of 190 hours.

P. Standby Pay
CPCEA employees who are subpoenaed to court and subsequently placed on “phone standby” during their non-work hours, will be compensated at the rate of one (1) hour of straight time pay or one (1) hour of compensatory time off for each day they are on “phone standby” status. Employees called in to court while on "phone standby" during their non-working hours will be compensated pursuant to Personnel Rules and Regulations, Section 16.22, Overtime.

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CPCEA MOU
July 1, 2026 – June 30, 2028

Q. Off Duty Contacts
Any unit member contacted while the unit member is off duty, and who is asked to provide services to the City but not directed to physically return to the work site shall be compensated as follows. The unit member shall receive a minimum of one hour of pay compensated at the unit member’s base hourly rate of pay. Such pay shall only apply where the unit member performs 10 minutes of work or more. Fewer than 10 minutes of work shall be considered de minimis and not compensable. If a unit member is asked to provide services more than once within the same one-hour window of time, the total time spent providing services shall be aggregated and will be counted as part of the same one-hour period. Unit members shall record all time actually worked and shall report the time according to applicable work time reporting procedures.

R. Overtime
At the discretion of the department head, overtime will be compensated by time and one-half pay or time and one-half compensatory time according to the Personnel Rules and Regulations Section 16.22 and under the following conditions:

Non-Sworn Safety personnel: Emergencies and investigations directly related to the City of Campbell where continuous overtime extends the regular work shift for a represented employee more than one and one-half (1.5) times the number of hours of that shift (18 hours for employees scheduled to a 12 hour shift, and 15 hours for employees scheduled to a 10 hour shift) will be paid at two times the represented employee's regular rate of pay. Double overtime will not be paid for pre-planned events where no emergency exists, or in response to requests for Mutual-Aid. As per policy, all timecards are approved by the Division Commanders. Any questions or issues related to approval will be settled at the discretion of the employee's division commander.

S. Meal Allowance
Employees represented by CPCEA will receive a meal allowance of $16.00 when required to work a shift extension of four (4) hours or more, excluding employee requested shift trades. Payment will be made through the City payroll system following the appropriate entry on the employee's timecard.

T. Working Out-of-Class Pay
Police Records Specialists performing communication dispatching duties will receive $3.00 per hour for each majority of a one-hour period in excess of an initial one-hour period in each working day. When no Property and Evidence Specialist is on duty, a Police Records Specialists performing Property and Evidence Specialist duties will receive $3.00 per hour for each majority of a Item 7.5
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CPCEA MOU
July 1, 2026 – June 30, 2028

one-hour period in excess of an initial one-hour period in each working day. A Police Records Specialist assigned court liaison duties for four hours or more will receive $3.00 per hour for the working-in-higher class assignment. Routine pickup or delivery of materials from courts or District Attorney's offices will not be considered court liaison duties. A Police Records Specialist assigned to act as Police Records Supervisor and a Public Safety Dispatcher assigned to act as Communications Supervisor for eight hours or more will receive $3.50 per hour for the working in higher class assignment. A Police Records Supervisor or Communications Supervisor assigned as Acting Division Supervisor will receive $3.50 per hour for the working in higher-class assignment. The working out of class assignment to court liaison duties or a supervisor position will be made in writing.

EXECUTED THIS _________ DAY OF __________ 2026 BY THE EMPLOYEREMPLOYEE REPRESENTATIVES WHOSE SIGNATURES APPEAR BELOW FOR THEIR RESPECTIVE ORGANIZATION.

CITY REPRESENTATIVES CAMPBELL POLICE CIVILIAN

EMPLOYEES ASSOCIATION
Brian Loventhal, City Manager Kelly Alvarado, President Angelique Gaeta, Assistant City Manager Jennifer Kenton, Treasurer Ada Chang, Human Resources Manager
Item 7.5
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City Council Report
DATE: September 15, 2026
TITLE: Water Tower Lighting Request - El Camino Health
RECOMMENDED ACTION:

That the City Council approve El Camino Health’s Water Tower themed lighting request application and direct staff to illuminate the City of Campbell Water Tower pink on October 6, 2026, in recognition of Breast Cancer Awareness Month and to raise awareness of breast cancer.

BACKGROUND
Council Policy 1.29, the Campbell Water Tower Lighting policy establishes protocols for themed lighting of the Campbell Water Tower that addresses the following situations:
a) Responsibility
b) National holidays and events recognized by the City
c) Third party requests
d) Special events and other displays of recognition
Lighting the Campbell Water Tower provides an opportunity for the City of Campbell to recognize national holidays and special events, while also promoting civic pride and fostering a stronger sense of community among Campbell residents.

DISCUSSION
El Camino Health has submitted a Water Tower Themed Lighting Request Application Form requesting that the City illuminate the Campbell Water Tower in pink for one evening on Tuesday, October 6, 2026, with October 7 and October 8 identified as alternate dates, in recognition of Breast Cancer. Each October, El Camino Health observes Breast Cancer Awareness Month by promoting early detection, education, and community outreach. The observance aims to increase awareness of breast cancer and encourage regular screening as an important measure for early detection and reducing the risk of adverse outcomes.

El Camino Health is a nationally recognized, locally based healthcare system that operates two not-for-profit acute care hospitals in Los Gatos and Mountain View, along with multiple urgent care, specialty care, and primary care locations throughout Santa Clara County. El Camino Health is a public 501(c)(3) organization founded and owned by the community.

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Staff has reviewed the Water Tower lighting Policy and approves El Camino Health’s application and recommends Council approval of the Water Tower Lighting request.

FISCAL IMPACT
The City’s adopted User Fee schedule, effective July 1, 2026, establishes a $150 fee for water tower lighting requests to help offset City’s costs associated with staff time required to review, approve, and process applications, as well as costs associated with illuminating the water tower.

ALTERNATIVES
In lieu of approving the attached application, the City Council may elect to:

1. Deny the Water Tower Themed Lighting Request Application.

2. Approve the request with an alternate lighting date.

3. Provide other direction to staff.

PREPARED BY: Diana Johnson, Executive Assistant to City Manager Item 7.6
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Report Approval Details
Document Title: 2026.09.15 Water Tower Lighting Request – El Camino Health.docx
Attachments: Water Tower Themed Lighting Application Form.pdf Final Approval
Date:

September 09, 2026
This document and all of its attachments were approved and signed as outlined below:

Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
Item 7.6
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O" • C A 44
IP & to
u :- , ,--',./.=' . V. O ...1.:,,.,- • 0 WATER TOWER THEMED LIGHTING REQUEST APPLICATION FORM A **Applications must be submitted at least 30 days before requested date**

4. ,, e• 0, • (.,• **$150.00 processing fee is required** -csiAor Themed lighting requests must not reflect the following:
• Promote or advance religion; • Promote or advance unlawful discrimination based on race, ethnicity, gender, national origin, or sexual orientation and,
• For profit and private businesses and organizations.

NAME OF CONTACT PERSON MAKING REQUEST: Jon Cowan on behalf of ORGANIZATION / APPLICANT NAME: El Camino Health
ADDRESS: 2500 Grant Road, Mountain View and
815 Pollard Road, Los Gatos (Campbell Border)
PHONE: 650-962-5953
E-MAIL: [email protected]
WEBSITE (OPTIONAL): https://www.elcaminohealth.org/
Please include a description of your organization.

El Camino Health is a nationally recognized and locally based healthcare system.

With two not-for-profit acute care hospitals in Los Gatos and Mountain View - and multiple urgent, specialty, and primary care locations in Santa Clara County.

We are a public 501(c)(3) founded and owned by the community.

Explain the reason(s) for this request. Describe the event associated with your organization's request.

To recognize Breast Cancer Awareness Month which is in October. The month aims to promote screening and reduce the risk of the disease, which affects 2.3 million women worldwide. Known best for its pink theme color, it supports people diagnosed with breast cancer, including those with metastatic breast cancer, educates people about breast cancer risk factors, and encourages women to go for regular breast cancer screening starting at age 40 or earlier, depending on personal breast cancer risk.

El Camino Health cares for breast cancer patients, both inside and outside clinic walls.

CITY OF CAMPBELL
Rev. 8/31/22
Item 7.6
Tuesday, September 15, 2026 42 of 234
Requested date to light the water tower*: October 6 to align with proclamation *lf approved by the City Council, specialty themed lighting will occur for one evening and overnight period from sundown to sunrise. Please note that if your requested and alternate dates conflict with established federal holidays and other dates of themed lighting officially scheduled by the city, your request will not be granted. For questions regarding the current year water tower lighting schedule, please contact our office at the number listed below.

Please list two alternate dates to light the water tower in case your desired date is not available.

October 7 October 8
Please list the color(s) you wish to request. Up to 12 different colors can be requested. All requested colors will remain static and not feature any special effects. Black and white are unavailable due to technical limitations.

Pink
Has your organization been previously approved for a past lighting request? 0 Yes ® No
If yes, please provide dates:

Disclaimer: The City Council may consider special lighting requests by third parties on a case-bycase basis subject to majority vote. Submitting a lighting request application does not guarantee the City Council will either grant a request or consider such a request.

If granted by the City, third party requests are subject, but not limited to the following terms:
• There is no automatic agreement renewal for lighting requests as third parties must submit requests for consideration each time they wish to illuminate the Water Tower. • The applicant will receive written response, stating a request's approval or denial via e-mail.

To the best of my knowledge, all information presented herein is correct and complete. 1 \-
onature Date
Submit signed applications and processing fee to the City Manager's Office. If paying by check, please make payable to City of Campbell.

Walk-in or mailed applications go to:

Attn: City Manager's Office
Campbell City Hall
70 N. First. Street. Campbell, CA 95008.

Electronic submissions go to: cmofficecampbellca.gov

THANK YOU FOR YOUR INTEREST IN SUBMITTING A CAMPBELL WATER TOWER LIGHTING REQUEST 08/26/2026
Item 7.6
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City Council Report
DATE: September 15, 2026
TITLE: Public Hearing to Consider Adoption of an Ordinance Extending Interim Ordinance No. 26-2354, which Continues implementation of Senate Bill (SB) 450 (2024), as Modified by Assembly Bill (AB) 1061 (2025) (Ordinance/ 4/5 Roll Call Vote).

RECOMMENDED ACTION:

It is recommended that the City Council adopt the attached ordinance to extend Interim Ordinance No. 26-2354, for a period for 10 months and 15 days.

ENVIRONMENTAL DETERMINATION
The proposed interim ordinance is not a project under the California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.21(k) and 66411.7(n).

BACKGROUND
At its August 3, 2026, meeting, the City Council adopted Interim Ordinance No. 26-2354, establishing measures to continue implementing Senate Bill (SB) 450 (2024), as modified by Assembly Bill (AB) 1061 (2025), governing single-family residential development and subdivision. The ordinance superseded the prior interim ordinance adopted in early 2025.

In addition to implementing State-mandated standards and requirements, the new ordinance simplified subdivision and accessory structure standards, limited architectural standards in the San Tomas Area and Campbell Village neighborhoods to new homes, and made other targeted revisions to improve clarity, consistency, and administration.

Pursuant to California Government Code Section 65858, the interim ordinance is in effect for 45 days, expiring on September 17, 2026. Following initial adoption, the Government Code allows a city to extend an interim ordinance for a period of up to 10 months and 15 days after a duly noticed public hearing. The additional time is intended to allow for the preparation of a permanent ordinance and/or the adoption of policies to address the land use matters that prompted the interim ordinance.

DISCUSSION
The draft ordinance would extend Interim Ordinance No. 26-2354 for an additional 10 months and 15 days, through August 1, 2027, or until it is superseded by a subsequent ordinance, whichever occurs first. Pursuant to Government Code Section 65858(d), at least 10 days prior to the expiration of the interim ordinance or any extension, the City Item 8.1
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Council must issue a written report describing the measures taken to alleviate the conditions that led to the adoption of the ordinance. This staff report is intended to satisfy that requirement.

As reflected in the findings supporting Interim Ordinance No. 26-2354, the City Council determined that recent changes enacted through Assembly Bill (AB) 1061 required updates to the City’s regulations governing residential development and urban lot splits in single-family residential zones. Because portions of the City’s existing zoning and subdivision regulations were inconsistent with these requirements, the City Council found that retaining them could create uncertainty for applicants, legal conflicts, and delays in implementing State-mandated housing solutions. The City Council therefore adopted updated urgency measures superseding Interim Ordinance No. 2321 and establishing revised objective standards and procedures consistent with State law.

NEXT STEPS
Looking ahead, the interim ordinance may need to be replaced later this year if new state legislation such as Assembly Bills 2005 and 2601 are adopted by the Legislature and signed into law by the Governor. Both of these bills would modify provisions governing the subdivision and development of single-family residential lots.

AB 2005 would amend the urban lot split provisions by modifying the existing three-year owner-occupancy requirement. Under the current version of the bill, an applicant could either retain the existing option of occupying one of the resulting units as a principal residence for at least three years or elect to sell both resulting parcels following issuance of certificates of occupancy, subject to recorded requirements that purchasers occupy a unit on each parcel for three years.

AB 2601 would make additional procedural changes by requiring the City to concurrently review applications for new residential development and an associated subdivision. The City could continue to condition issuance of building permits or certificates of occupancy on recordation of the parcel map, but could not require completion of the subdivision process before beginning review of the related residential development application. The bill would also allow an urban lot split parcel map to include a condominium plan and establish requirements for the condominium conversion of existing residential units.

PUBLIC NOTICE
As required by the State law, a notice of this public hearing was published in the Metro Silicon Valley newspaper and posted on the City's public notices page.

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

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Report Approval Details
Document Title: Report – Extension of an Ordinance to Continue Implementation of Senate Bill (SB) 450 (2024), as Modified by Assembly Bill (AB) 1061 (2025) .docx
Attachments: Interim Ordinance Extension.docx
Final Approval
Date:

August 26, 2026
This document and all of its attachments were approved and signed as outlined below:

Item 8.1
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Ordinance No. _____

BEING AN INTERIM ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL EXTENDING INTERIM ORDINANCE NO. 26-2354 IMPLEMENTING SENATE BILL NO. 450, AS FURTHER MODIFIED BY ASSEMBLY BILL NO. 1061 (2025), AND

INCORPORATING REVISED UNIFORM OBJECTIVE ZONING, SUBDIVISION, AND DESIGN STANDARDS FOR THE SINGLE-FAMILY RESIDENTIAL ZONING DISTRICT.

WHEREAS, on September 16, 2021, the Governor of the State of California signed into law Senate Bill No. 9, "An act to amend Section 66452.6 of, and to add Sections 65852.21 and 66411.7 to, the California Government Code, relating to land use," which requires ministerial approval of a housing development of no more than two units in a single-family zone (proposed housing development), the subdivision of a parcel zoned for residential use into two parcels (urban lot split), or both;
WHEREAS, on September 19, 2024, the Governor of the State of California signed into law Senate Bill No. 450, "An act to amend Sections 65852.21 and 66411.7 of the California Government Code, relating to land use," which prohibits the imposition of non-uniform objective zoning, design, and subdivision standards on proposed housing developments and urban lot splits in single-family residential zones, establishes a 60-day timeline for local agency review and action, and updates requirements for demolition and environmental findings; WHEREAS, Senate Bill No. 450 further specifies that objective zoning, design, and subdivision standards must relate to parcel design and improvements and allows local agencies to impose more permissive standards than the underlying zoning; WHEREAS, Senate Bill No. 450 deems urban lot split and two-unit housing development applications approved if not acted upon within the 60-day period and requires agencies to provide detailed feedback for any denied applications to ensure applicants can address deficiencies;
WHEREAS, on October 10, 2025, the Governor of the State of California signed into law Assembly Bill No. 1061, "An act to amend Sections 65852.21 and 66411.7 of the California Government Code, relating to land use," which further modifies the statutory framework governing ministerial review and objective standards for certain housing developments and urban lot splits in single-family residential zones, including clarifications regarding historic resource exceptions and related procedural and applicability requirements; WHEREAS, certain zoning and subdivision standards of the City of Campbell Zoning and Subdivision Codes, respectively, and their permitting procedures are inconsistent with Sections 65852.21 and 66411.7 of the California Government Code, as amended by Senate Bill No. 450 and Assembly Bill No. 1061;
WHEREAS, the provisions of Senate Bill No. 450 and Assembly Bill No. 1061 went into effect on January 1, 2025 and January 1, 2026, respectively, and without locally codified objective design standards and implementation procedures consistent with these statutes, the law presents a current and immediate threat to the public peace, health, safety, and welfare, in that certain existing zoning and subdivision standards are in conflict with state law and could create uncertainty for applicants, potential legal conflicts, and delays in implementing statemandated housing solutions; Item 8.1
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WHEREAS, Government Code Sections 65852.21(a)(5)(A) and 66411.7(a)(3)(F)(i), as amended by Assembly Bill No. 1061, refer to a “contributing structure” located within a historic district included on the California Register of Historical Resources or within a historic district listed or designated pursuant to a city or county ordinance; and although Chapter 21.33 (Historic Preservation) does not separately define the term “contributing structure,” the City Council finds that the principal structures located within the Alice Avenue Historic District that are not designated as landmarks fall within this category because the District was designated based on a shared historic context, reflected in its architectural character, integrity, and development pattern dating from 1917 to 1940, and such structures therefore contribute to the historic character and integrity for which the District was designated; WHEREAS, pursuant to Sections 65852.21(j) and 66411.7(n) of the California Government Code, a local agency may adopt an ordinance to implement the law; WHEREAS, pursuant to Section 65858 of the California Government Code and Section

21.60.090 of the Campbell Municipal Code, the City Council may take appropriate action to adopt urgency measures as an interim ordinance;
WHEREAS, the City is undertaking a study to update its current zoning and subdivision code provisions to conform to changes in State law, which shall be completed within a reasonable time, not to exceed 10 months and 15 days from the effective date of this extension, or until the adoption of a superseding ordinance, whichever occurs first; WHEREAS, the interim regulations establish urgency measures to eliminate the imposition of non-uniform objective zoning, design, and subdivision standards, establish a 60- day timeline for local agency action, and modify requirements for demolition, historic resources, and environmental findings;
WHEREAS, it is not the intent of the interim regulations to deny approvals needed for the development of projects with a significant component of multifamily housing; WHEREAS, adoption and extension of the interim regulations is exempt from the California Environmental Quality Act (CEQA) pursuant to California Government Code Section 65852.21(k), as it pertains to the implementation of Senate Bill No. 450, as subsequently amended;
WHEREAS, on January 13, 2025, the City Council adopted Ordinance No. 2321 as an interim urgency ordinance to implement Senate Bill No. 450, which was subsequently extended and was scheduled to remain in effect through January 1, 2027; WHEREAS, on August 1, 2026, the City Council adopted Interim Ordinance No. 26- 2354 to reflect subsequent changes in state law and implementation requirements resulting from Assembly Bill No. 1061 and to supersede and replace Ordinance No. 2321, as extended, in its entirety;
WHEREAS, Interim Ordinance No. 26-2354 will expire on September 17, 2026, unless extended in accordance with Section 65858 of the California Government Code; Item 8.1
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WHEREAS, the City Council now desires to extend Interim Ordinance No. 26-2354 for an additional period of 10 months and 15 days following public notice and hearing, to allow continued time for preparation and adoption of permanent zoning and subdivision standards; WHEREAS, the City Council finds and determines that extending Interim Ordinance No. 26-2354 will not be detrimental to the public interest, health, safety, convenience, or general welfare of the City, and that it remains internally consistent with other applicable provisions of the Campbell Municipal Code;
WHEREAS, it is not the intent of this interim ordinance to deny or delay the approval of housing development projects that comply with Sections 65852.21 and 66411.7 of the California Government Code;
WHEREAS, in light of the foregoing findings, the City Council further finds that there is a current and immediate threat to the public health, safety, or welfare, and that adherence to existing standards, requirements, and permitting procedures in conflict with this ordinance would result in that threat to public health, safety, or welfare; and WHEREAS, this interim ordinance is adopted by a four-fifths vote of the City Council in accordance with Section 65858 of the Government Code and shall take effect immediately upon its adoption.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1 (SEVERABILITY): If any section, subsection, sentence, clause, or phrase of this interim ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council hereby declares that it would have passed this interim ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.

SECTION 2 (CEQA): Adoption of this interim ordinance is not a project for purposes of the California Environmental Quality Act (CEQA) pursuant to Government Code Sections 65852.21(j) and 66411.7(m), as it pertains to the implementation of those sections.

SECTION 3 (STATE LAW). Any provision of Interim Ordinance No. 26-2354 that is inconsistent with Government Code Sections 65852.21 or 66411.7 shall be interpreted in a manner as to achieve compliance with State law. The provisions of Interim Ordinance No. 26-2354 shall supersede and take precedence over any inconsistent provision of the Campbell Municipal Code to the extent necessary to effect the provisions of Interim Ordinance No. 26-2354 for the duration of its effectiveness.

SECTION 4 (REPEAL): If Government Code Sections 65852.21 and 66411.7 are repealed or otherwise rescinded by the California State Legislature or by the People of the State of California, Interim Ordinance No. 26-2354 shall cease to be in effect.

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SECTION 5 (PUBLICATION): The City Clerk shall cause this interim ordinance to be published at least once in a newspaper of general circulation within 15 days after its adoption in accordance with Government Code Section 36933.

SECTION 6 (APPLICATIONS IN PROGRESS): The provisions of Section 6 of Interim Ordinance No. 26-2354 concerning applications in progress shall remain unchanged and shall continue to apply based on the original effective date of Interim Ordinance No. 26-2354.

SECTION 7 (EFFECTIVENESS): Interim Ordinance No. 26-2354 is hereby extended for an additional period of ten months and fifteen days commencing upon the expiration of Interim Ordinance No. 26-2354, or until it is superseded by the adoption of a superseding ordinance, whichever occurs first. All provisions of Interim Ordinance No. 26-2354 shall remain unchanged and in full force and effect for the duration of the extension.

PASSED AND ADOPTED this _____ day of ____________, 2026 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:

Daniel E. Furtado
ATTEST:

Andrea Sanders, City Clerk
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City Council Report
DATE: September 15, 2026
TITLE: Annual Investment Policy Update FY (2026-27)
RECOMMENDED ACTION:

It is recommended that the City Council adopt a Resolution approving the annual update to the City’s Investment Policy for FY 2026-27.

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

California Government Code Section 53646 (a) (2) recommends that on an annual basis, the City Investment Policy be submitted to its legislative body and any oversight committee for consideration at a public meeting. The Finance Sub-Committee is the oversight committee responsible for review of the Investment Policy.

DISCUSSION
The City’s Finance Sub-Committee met on August 24, 2026, to discuss and review the recommended Investment Policy for Fiscal Year (FY) 2026-27. The Investment Policy is updated annually to conform to California Government Code (CGC) Section 53600 et.

Seq. any statutory revisions made during the previous calendar year that impact the City policy are incorporated as necessary and shown in the Redline (Attachment 2) and Clean (Attachment 3) versions of the policy. There are no statutory revisions needed this year, but staff and the City’s investment advisors (Chandler) are recommending three minor revisions below. All page numbers reference the Redline version:
 Header – Modified to September 15, 2026, throughout to reflect tentative Council review and approval date.
 Page 6 (Section V.5) – Per changes adopted into CGC, increased Commercial Paper maximum maturity from 270 days to 397 days (9 months to 13 months max Item 9.1
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maturity). This is not a statutory requirement, but such an increase in maturity is now allowable by the CGC, and staff recommends going to the maximum allowable limit to expand investment flexibility as allowed by the CGC. However, please note that the City rarely invests in commercial paper and currently has no commercial papers holdings.”
 Page 9 (Section V.5) – Per changes adopted into CGC, extending by 5 years a sunsetting clause from 2026 to 2031 that allows for investment in securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity. This is also not a statutory requirement, but such an extension is now allowable by the CGC, and staff recommends making the adjustment to maintain current investment flexibility. However, please note that the City rarely invests in these types of securities and currently has none.

The Finance Sub-Committee agreed with staff’s recommendations on the FY 2026- 27 Investment Policy and recommended it for Council consideration and approval.

The City’s Investment Strategy was also updated to reflect current economic and financial conditions and is shown as Attachment 4. Representatives from Chandler will support City staff in its presentation of the recommended Investment Policy and Strategy for FY 2026-27 as well as provide an Economic and Portfolio Update. Within this presentation, key economic indicators and charts shown in Attachment 5 will be highlighted and explained in more detail.

While the Finance Sub-Committee agreed with staff’s recommendations on the FY 2026- 27 Investment Policy and Strategy, they did have several questions regarding wire transfers and prevention of fraud as well as the state of the economy in general. The Finance Sub-Committee was satisfied with the answers provided by City staff and Chandler representatives, but both will also be available for questions as needed at the September 15, 2026, City Council meeting

FISCAL IMPACT
There is no immediate fiscal impact of either the FY 2026-27 Investment Policy or the Investment Strategy, but both will impact liquidity targets and investment returns that the City is able to achieve in the future.

ALTERNATIVES
1) Do not approve investment policy updates and strategy and provide staff with other direction.

PREPARED BY: Will Fuentes, Finance Director
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Report Approval Details
Document Title: Report - Annual Investment Policy Update FY 2026-27.docx Attachments: 1- Resolution - Investment Policy Update FY 2026-27.docx 2 - Investment Policy FY 2026-27 REDLINE.pdf
3 - Investment Policy FY 2026-27 CLEAN.pdf
4 - Investment Strategy FY 2026-27.pdf
5 - Economic and Portfolio Update (Chandler 06-30-26).pdf Final Approval Date: September 09, 2026
This document and all of its attachments were approved and signed as outlined below:

Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
Item 9.1
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RESOLUTION NO.____________________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CAMPBELL APPROVING THE ANNUAL UPDATE TO THE INVESTMENT POLICY FOR FISCAL YEAR (FY) 2026-27
WHEREAS, Government Code Section 53646(a)(2) recommends that a statement of Investment Policy be submitted to the City’s legislative body annually for its consideration at a public meeting; and
WHEREAS, there has been submitted to the City Council a statement of the City’s Investment Policy; and
WHEREAS, the Policy and any changes recommended by staff and the Finance Sub-Committee have been reviewed by the City Council and it has been determined that the Fiscal Year (FY) 2026-27 Investment Policy as recommended is acceptable.

NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Campbell that the FY 2026-27 Investment Policy is hereby approved as submitted.

PASSED AND ADOPTED this ____ day of __________ 2026, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:
________________________
Daniel E. Furtado, Mayor
ATTEST:
_________________________
Andrea Sanders, City Clerk
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City of Campbell, California
Investment Policy Date: September 1615, 20252026
1 I. PURPOSE
It is the policy of the City of Campbell to invest public funds in a prudent manner which conforms to all statutes governing the investment of public funds while providing security and meeting the daily cash flow needs of the City.

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

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

1. General Fund

2. Special Revenue Funds

3. Debt Service Funds

4. Capital Projects Funds

5. Internal Service Funds

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

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

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

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

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

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City of Campbell, California
Investment Policy Date: September 1615, 20252026
2 1. Safety: Safety of principal is the foremost objective of the City of Campbell.

Safety and the minimizing of risk associated with investing refer to attempts to reduce the potential for loss of principal, interest or a combination of the two. The City ensures safety of its invested idle funds and limits credit and interest rate risks by following these guidelines (all of which are detailed within the body of the Investment Policy):
a. Investing only in those instruments that are generally accepted as safe investment vehicles for local government as authorized by this Policy,
b. Carefully reviewing the qualifications and financial strength of financial institutions and broker/dealers prior to conducting business with them,
c. Diversifying the investment portfolio as prescribed within this Policy,
d. Structuring the portfolio such that securities mature to meet the City's cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation,
e. Limiting the final maturity of purchased securities to five years.

The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints, and risk tolerances, and f. Ensuring the physical security or safekeeping of the City's investments.

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

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

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

IV. STRUCTURE AND RESPONSIBILITY
A. DELEGATION OF AUTHORITY:

1. The City Council assumes direction over the City’s investments, and assigns management responsibility for the investment program to the Finance Director, who shall serve as Chief Fiscal Officer, and have legal custody of funds. The Finance Director may provide for delegation of his/her responsibilities to other Item 9.1
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City of Campbell, California
Investment Policy Date: September 1615, 20252026
3 persons under his/her control responsible for investment transactions, including the delegation of certain portions of the investment portfolio to one or more external and qualified investment advisers or such other designee approved by the Finance Sub-Committee. External investment advisors who are engaged b by the City shall be registered under the Investment Advisers Act of 1940 and shall assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

B. POLICY REVIEW:

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

C. RESPONSIBILITIES:

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

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

3. Responsibilities of the City Manager: The City Manager is responsible for directing and supervising the Finance Director. He/she has the responsibility of keeping the City Council fully advised as to the financial condition of the City. a. Wire Transfer Authority: The City Manager has unlimited wire transfer authority for a single transaction. Such a transaction requires joint review, approval and verification in advance by the City Manager and Finance Director. The transaction shall be highlighted in the Quarterly Investment Report to Council.

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

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City of Campbell, California
Investment Policy Date: September 1615, 20252026
4 a. Wire Transfer Authority: The Finance Director has wire transfer authority not to exceed $5,000,000 for a single transaction. Such a transaction shall be reviewed, approved and verified in advance by the City Manager. The transaction shall be highlighted in the Quarterly Investment Report to Council.

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

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

Refer to "Monitoring and Reporting" for additional information. a. Wire Transfer Authority: The Assistant Finance Director has wire transfer authority not to exceed $3,000,000 for a single investment transaction.

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

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

D. Prudence:

1. Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard. This means that all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to Item 9.1
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City of Campbell, California
Investment Policy Date: September 1615, 20252026
5 this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

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

E. Ethics and Conflicts of Interest:

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

All participants in the investment process are required to comply with terms of the Political Reform Act, Fair Political Practices Commission Regulations promulgated thereunder (2 C.C.R. §§ 18110 through 18998), the City’s Conflict of Interest Policy, including, without limitation, filing of Form 700, notification and recusal obligations, and Government Code section 1090 prohibitions.

Conflict with State Statutes or Regulations

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

V. AUTHORIZED SECURITIES AND TRANSACTIONS
All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or pledged to secure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of these code sections will be assumed Item 9.1
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City of Campbell, California
Investment Policy Date: September 1615, 20252026
6 to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy and past City investment practices, the City may delay adherence to the new requirements when it is deemed in the best interest of the City to do so. Percentage holdings limits listed in this section apply at the time the security is purchased.

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

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

2. Federal Agency debentures and mortgage-backed securities with a final maturity not exceeding five years from the date of purchase issued by the Government National Mortgage Association (GNMA). The aggregate investment in Federal Agency obligations shall not exceed 75% of the City’s total portfolio. No more than 30% of the total portfolio may be invested in any single Agency issuer. No more than 20% of the total portfolio may be invested in callable agency securities.

3. Federal Instrumentality (government sponsored enterprise (GSE)) debentures, discount notes, callable and step-up securities, with a final maturity not exceeding five years from the date of purchase, issued by the following only: Federal Home Loan Banks (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC). The aggregate investment in Federal Instrumentality obligations shall not exceed 75% of the City’s total portfolio. No more than 30% of the total portfolio may be invested in any single Agency/GSE issuer. No more than 20% of the total portfolio may be invested in callable agency securities.

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

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

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

5. Prime Commercial Paper with a maturity not exceeding 270 397 days from the date of purchase with the highest ranking or of the highest letter and number rating as provided for by a Nationally Recognized Statistical Ratings Organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either subItem 9.1 Tuesday, September 15, 2026 60 of 234
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7 paragraph a. or sub-paragraph b. below:
a. The entity shall (1) be organized and operating in the United States as a general corporation, (2) have total assets in excess of five hundred million dollars ($500,000,000) and (3) have debt other than commercial paper, if any, that is rated “A” or higher by a NRSRO.
b. The entity shall (1) be organized within the United States as a special purpose corporation, trust, or limited liability company, (2) have program wide credit enhancements, including, but not limited to, over collateralization, letters of credit or surety bond and (3) have commercial paper that is rated “A-1” or higher, or the equivalent, by a NRSRO.

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

6. Eligible Bankers Acceptances provided that no more than 5% of the City’s total portfolio may be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 30% of the City’s total portfolio. The maximum maturity does not exceed 180 days.

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

8. Non-negotiable Time Certificates of Deposit and savings deposits with a maturity not exceeding five years, in state or nationally chartered banks or savings and loans with a California branch office that are insured by the FDIC. Time Certificates of Deposit exceeding the FDIC insured amount must be secured pursuant to California Government Code Section 53652. No more than $1 million may be invested in non-negotiable time certificates of deposit of any one issuer and the aggregate amount invested in nonnegotiable time certificates of deposit shall not exceed 20% of the City’s total portfolio.

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

The full amount of the principal and interest that may be accrued during the maximum term of each certificate shall be insured by the FDIC. The maximum maturity does not exceed 5 years

10. Negotiable Certificates of Deposit (NCDs) issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that the purchase of Item 9.1
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8 certificates of deposit do not, in total, exceed 30% of the City’s funds that may be invested for this purpose. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. The maximum maturity does not exceed 5 years and no more than 5% of the total portfolio may be invested in any single issuer.

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

12. Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) invest only in the securities and obligations authorized in this policy and (3) have a rating of AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 10% of the City’s total portfolio may be invested in mutual funds of any one issuer, and the aggregate investment in mutual funds shall not exceed 10% of the City’s total portfolio. The combined aggregate investment in mutual funds and money market funds shall not exceed 20% of the total portfolio.

13. Money Market Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in this policy and (4) have a rating of at least two of the following: AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 20% of the City’s total portfolio may be invested in the shares of any on money market fund, and the combined aggregate investment in mutual funds and money market funds shall not exceed 20% of the total portfolio.

14. Municipal and State Obligations with a minimum long-term rating of A/A-1 or higher by Standard and Poor’s and not exceeding 30% of the portfolio and the maximum maturity does not exceed 5 years:
(a) Bonds Issued by the Local Agency (City of Campbell) including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.) (b) State Obligations including registered treasury notes or bonds of this State and any of the other 49 states in addition to California, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of the any of the other 49 United States, in addition to California.
(c) California Local Agency obligations including bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the any of the local agency.
(d) No more than 5% of the portfolio may be invested in any single issuer.

15. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations from Issuers Not Defined in sections 1, 2 and 3 of the Authorized Securities and Transactions Section of This Policy, provided that:

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

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

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

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

18. Prohibited Investment Vehicles and Practices
a. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. b. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. c. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 20262031, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
d. Purchasing or selling securities on margin is prohibited. e. The purchase of foreign currency denominated securities is prohibited. f. Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.
g. The purchase of a security with a forward settlement date exceeding 45 days from the time of investment is prohibited.

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10 VI. PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of settlement, unless the City Council has granted authority to make such an investment at least three months prior to the date of investment. The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

VII. MONITORING AND REPORTING
A. The Finance Director shall routinely monitor the contents of the portfolio and shall file with the City Council the Assistant Finance Director's Investment Report at the first regularly scheduled City Council meeting after 45 days from the end of the quarter. The reports shall be prepared and submitted in accordance with California Government Code Section 53646 and shall include the following on all invested monies:
 Type of Investment and Issuer
 Beginning Balances
 Purchases During Quarter
 Monthly transactions including all Maturities and Sales During the Quarter  Ending Balances
 Maturity Date
 Weighted Average Final Maturity
 Call Provisions (if any)
 Interest Rate
 Weighted Average Yield
 Face Value or Purchase Cost
 Market Value including source
 Interest Earned During Quarter
 Interest Earned to Maturity
 Cash Flow Projection for the Following Quarter
 Summary of Cash Invested to Total Cash Balances
 Comparative Statistics by Fiscal Year
 Reconciliation of Cash & Investments to General Ledger Balances  Investments under the Management of Contracted Parties  Statement of Compliance with the Investment Policy
 Statement of Ability to Meet Obligations of Next Six Months VIII. SELECTION OF BROKER/DEALERS
The City shall transact business with securities broker/dealers after careful review of their qualifications and creditworthiness. In selecting broker /dealers, the Finance Director or designated staff member shall select broker/dealers representing primary dealers in government securities that have established offices and order desks within the State of California, or with such firms that have a primary dealer within their holding company structure.

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

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11 Before accepting funds or engaging in investment transactions with the City, the supervising officer at each authorized broker/dealer shall submit and annually update a City approved Broker/Dealer Information Request form that includes the firm’s most recent audited financial statement. The Finance Director, or his or her designee, shall maintain a list of approved broker/dealers. Broker/dealers shall attest in writing that they have received and reviewed a copy of this Investment Policy, and that they will comply with it and disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm and the City of Campbell. If the City has engaged the services of an outside professional investment advisor, the investment advisor may use its own list of authorized broker-dealers to conduct transactions on behalf of the City.

IX. DELIVERY, SAFEKEEPING AND COLLATERALIZATION
A. Delivery:

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

B. Safekeeping:

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

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

C. Collateralization:

1. Certificates of Deposit (CDs). The Agency shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

2. Collateralization of Bank Deposits. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The Agency shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

3. Repurchase Agreements. The Agency requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
a. The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Item 9.1
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12 Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. b. Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above
c. The Agency shall receive monthly statements of collateral.

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

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

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

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

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13 EXHIBIT A

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

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

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

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

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

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

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

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

Mortgage Backed Securities. - Mortgage-backed securities (MBS) are created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a prorata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal Item 9.1
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14 agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

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

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

Nationally Recognized Statistical Ratings Organization. - A nationally recognized statistical ratings organization (NRSRO) is a credit rating agency that provides an assessment of the creditworthiness of a firm or financial instrument(s) that is registered and approved by the Securities and Exchange Commission (SEC). Not all credit rating organizations are NRSROs Repurchase Agreements (REPOS). - is a contractual arrangement between a financial institution, or dealer, and an investor. This agreement normally can run for one or more days. The investor puts up his funds for a certain number of days at a stated yield. In return, he takes a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid plus interest.

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

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

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

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

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

U.S. Government Instrumentality Issues. Are government sponsored enterprises that are backed by the creditworthiness of the issuing agency, not the full faith and credit of the U.S. government. They do carry an implied guarantee of government assistance to the organization should it encounter financial difficulties. Issuers include: Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC).

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

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

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

1. General Fund

2. Special Revenue Funds

3. Debt Service Funds

4. Capital Projects Funds

5. Internal Service Funds

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

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

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

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

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

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

Safety and the minimizing of risk associated with investing refer to attempts to reduce the potential for loss of principal, interest or a combination of the two. The City ensures safety of its invested idle funds and limits credit and interest rate risks by following these guidelines (all of which are detailed within the body of the Investment Policy):
a. Investing only in those instruments that are generally accepted as safe investment vehicles for local government as authorized by this Policy,
b. Carefully reviewing the qualifications and financial strength of financial institutions and broker/dealers prior to conducting business with them,
c. Diversifying the investment portfolio as prescribed within this Policy,
d. Structuring the portfolio such that securities mature to meet the City's cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to their maturation,
e. Limiting the final maturity of purchased securities to five years.

The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints, and risk tolerances, and f. Ensuring the physical security or safekeeping of the City's investments.

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

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

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

IV. STRUCTURE AND RESPONSIBILITY
A. DELEGATION OF AUTHORITY:

1. The City Council assumes direction over the City’s investments, and assigns management responsibility for the investment program to the Finance Director, who shall serve as Chief Fiscal Officer, and have legal custody of funds. The Finance Director may provide for delegation of his/her responsibilities to other Item 9.1
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3 persons under his/her control responsible for investment transactions, including the delegation of certain portions of the investment portfolio to one or more external and qualified investment advisers or such other designee approved by the Finance Sub-Committee. External investment advisors who are engaged b by the City shall be registered under the Investment Advisers Act of 1940 and shall assist in the management of the City's investment portfolio in a manner consistent with the City's objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

B. POLICY REVIEW:

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

C. RESPONSIBILITIES:

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

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

3. Responsibilities of the City Manager: The City Manager is responsible for directing and supervising the Finance Director. He/she has the responsibility of keeping the City Council fully advised as to the financial condition of the City. a. Wire Transfer Authority: The City Manager has unlimited wire transfer authority for a single transaction. Such a transaction requires joint review, approval and verification in advance by the City Manager and Finance Director. The transaction shall be highlighted in the Quarterly Investment Report to Council.

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

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

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

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

Refer to "Monitoring and Reporting" for additional information. a. Wire Transfer Authority: The Assistant Finance Director has wire transfer authority not to exceed $3,000,000 for a single investment transaction.

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

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

D. Prudence:

1. Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard. This means that all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to Item 9.1
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5 this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

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

E. Ethics and Conflicts of Interest:

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

All participants in the investment process are required to comply with terms of the Political Reform Act, Fair Political Practices Commission Regulations promulgated thereunder (2 C.C.R. §§ 18110 through 18998), the City’s Conflict of Interest Policy, including, without limitation, filing of Form 700, notification and recusal obligations, and Government Code section 1090 prohibitions.

Conflict with State Statutes or Regulations

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

V. AUTHORIZED SECURITIES AND TRANSACTIONS
All investments and deposits of the City shall be made in accordance with California Government Code Sections 16429.1, 53600-53609 and 53630-53686, except that pursuant to California Government Code Section 5903(e), proceeds of bonds and any moneys set aside or pledged to secure payment of the bonds may be invested in securities or obligations described in the ordinance, resolution, indenture, agreement, or other instrument providing for the issuance of the bonds. Any revisions or extensions of these code sections will be assumed Item 9.1
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6 to be part of this Policy immediately upon being enacted. However, in the event that amendments to these sections conflict with this Policy and past City investment practices, the City may delay adherence to the new requirements when it is deemed in the best interest of the City to do so. Percentage holdings limits listed in this section apply at the time the security is purchased.

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

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

2. Federal Agency debentures and mortgage-backed securities with a final maturity not exceeding five years from the date of purchase issued by the Government National Mortgage Association (GNMA). The aggregate investment in Federal Agency obligations shall not exceed 75% of the City’s total portfolio. No more than 30% of the total portfolio may be invested in any single Agency issuer. No more than 20% of the total portfolio may be invested in callable agency securities.

3. Federal Instrumentality (government sponsored enterprise (GSE)) debentures, discount notes, callable and step-up securities, with a final maturity not exceeding five years from the date of purchase, issued by the following only: Federal Home Loan Banks (FHLB), Federal National Mortgage Association (FNMA), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC). The aggregate investment in Federal Instrumentality obligations shall not exceed 75% of the City’s total portfolio. No more than 30% of the total portfolio may be invested in any single Agency/GSE issuer. No more than 20% of the total portfolio may be invested in callable agency securities.

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

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

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

5. Prime Commercial Paper with a maturity not exceeding 397 days from the date of purchase with the highest ranking or of the highest letter and number rating as provided for by a Nationally Recognized Statistical Ratings Organization (NRSRO). The entity that issues the commercial paper shall meet all of the following conditions in either sub-paragraph a.

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

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

6. Eligible Bankers Acceptances provided that no more than 5% of the City’s total portfolio may be invested in banker’s acceptances of any one issuer, and the aggregate investment in banker’s acceptances shall not exceed 30% of the City’s total portfolio. The maximum maturity does not exceed 180 days.

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

8. Non-negotiable Time Certificates of Deposit and savings deposits with a maturity not exceeding five years, in state or nationally chartered banks or savings and loans with a California branch office that are insured by the FDIC. Time Certificates of Deposit exceeding the FDIC insured amount must be secured pursuant to California Government Code Section 53652. No more than $1 million may be invested in non-negotiable time certificates of deposit of any one issuer and the aggregate amount invested in nonnegotiable time certificates of deposit shall not exceed 20% of the City’s total portfolio.

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

The full amount of the principal and interest that may be accrued during the maximum term of each certificate shall be insured by the FDIC. The maximum maturity does not exceed 5 years

10. Negotiable Certificates of Deposit (NCDs) issued by a nationally or state-chartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that the purchase of Item 9.1
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8 certificates of deposit do not, in total, exceed 30% of the City’s funds that may be invested for this purpose. The amount of the NCD insured up to the FDIC limit does not require any credit ratings. Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO. The maximum maturity does not exceed 5 years and no more than 5% of the total portfolio may be invested in any single issuer.

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

12. Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) invest only in the securities and obligations authorized in this policy and (3) have a rating of AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 10% of the City’s total portfolio may be invested in mutual funds of any one issuer, and the aggregate investment in mutual funds shall not exceed 10% of the City’s total portfolio. The combined aggregate investment in mutual funds and money market funds shall not exceed 20% of the total portfolio.

13. Money Market Mutual Funds registered under the Investment Company Act of 1940 that (1) are “no-load” (meaning no commission or fee shall be charged on purchases or sales of shares); (2) have a constant daily net asset value per share of $1.00; (3) invest only in the securities and obligations authorized in this policy and (4) have a rating of at least two of the following: AAA by Standard and Poor's, Aaa by Moody's or AAA/V1+ by Fitch. No more than 20% of the City’s total portfolio may be invested in the shares of any on money market fund, and the combined aggregate investment in mutual funds and money market funds shall not exceed 20% of the total portfolio.

14. Municipal and State Obligations with a minimum long-term rating of A/A-1 or higher by Standard and Poor’s and not exceeding 30% of the portfolio and the maximum maturity does not exceed 5 years:
(a) Bonds Issued by the Local Agency (City of Campbell) including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the local agency.) (b) State Obligations including registered treasury notes or bonds of this State and any of the other 49 states in addition to California, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of the any of the other 49 United States, in addition to California.
(c) California Local Agency obligations including bonds, notes, warrants, or other evidence of indebtedness of any local agency within this state, including bonds payable solely out of the revenue from a revenue-producing property owned, controlled, or operated by the local agency or by a department, board, agency, or authority of the any of the local agency.
(d) No more than 5% of the portfolio may be invested in any single issuer.

15. Asset-Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations from Issuers Not Defined in sections 1, 2 and 3 of the Authorized Securities and Transactions Section of This Policy, provided that:

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

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

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

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

18. Prohibited Investment Vehicles and Practices
a. State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options. b. In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited. c. Investment in any security that could result in a zero interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2031, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
d. Purchasing or selling securities on margin is prohibited. e. The purchase of foreign currency denominated securities is prohibited. f. Agencies that are not Qualified Institutional Buyers (QIB) as defined by the Securities and Exchange Commission are prohibited from purchasing Private Placement Securities. The SEC defines a QIB as having at least $100,000,000 in securities owned and invested.
g. The purchase of a security with a forward settlement date exceeding 45 days from the time of investment is prohibited.

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10 VI. PORTFOLIO MATURITIES AND LIQUIDITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities. The City will not invest in securities maturing more than five years from the date of settlement, unless the City Council has granted authority to make such an investment at least three months prior to the date of investment. The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

VII. MONITORING AND REPORTING
A. The Finance Director shall routinely monitor the contents of the portfolio and shall file with the City Council the Assistant Finance Director's Investment Report at the first regularly scheduled City Council meeting after 45 days from the end of the quarter. The reports shall be prepared and submitted in accordance with California Government Code Section 53646 and shall include the following on all invested monies:
 Type of Investment and Issuer
 Beginning Balances
 Purchases During Quarter
 Monthly transactions including all Maturities and Sales During the Quarter  Ending Balances
 Maturity Date
 Weighted Average Final Maturity
 Call Provisions (if any)
 Interest Rate
 Weighted Average Yield
 Face Value or Purchase Cost
 Market Value including source
 Interest Earned During Quarter
 Interest Earned to Maturity
 Cash Flow Projection for the Following Quarter
 Summary of Cash Invested to Total Cash Balances
 Comparative Statistics by Fiscal Year
 Reconciliation of Cash & Investments to General Ledger Balances  Investments under the Management of Contracted Parties  Statement of Compliance with the Investment Policy
 Statement of Ability to Meet Obligations of Next Six Months VIII. SELECTION OF BROKER/DEALERS
The City shall transact business with securities broker/dealers after careful review of their qualifications and creditworthiness. In selecting broker /dealers, the Finance Director or designated staff member shall select broker/dealers representing primary dealers in government securities that have established offices and order desks within the State of California, or with such firms that have a primary dealer within their holding company structure.

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

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11 Before accepting funds or engaging in investment transactions with the City, the supervising officer at each authorized broker/dealer shall submit and annually update a City approved Broker/Dealer Information Request form that includes the firm’s most recent audited financial statement. The Finance Director, or his or her designee, shall maintain a list of approved broker/dealers. Broker/dealers shall attest in writing that they have received and reviewed a copy of this Investment Policy, and that they will comply with it and disclose potential conflicts or risks to public funds that might arise out of business transactions between the firm and the City of Campbell. If the City has engaged the services of an outside professional investment advisor, the investment advisor may use its own list of authorized broker-dealers to conduct transactions on behalf of the City.

IX. DELIVERY, SAFEKEEPING AND COLLATERALIZATION
A. Delivery:

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

B. Safekeeping:

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

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

C. Collateralization:

1. Certificates of Deposit (CDs). The Agency shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

2. Collateralization of Bank Deposits. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The Agency shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

3. Repurchase Agreements. The Agency requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
a. The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Item 9.1
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12 Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities. b. Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above
c. The Agency shall receive monthly statements of collateral.

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

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

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

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

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13 EXHIBIT A

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

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

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

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

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

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

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

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

Mortgage Backed Securities. - Mortgage-backed securities (MBS) are created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a prorata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal Item 9.1
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14 agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

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

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

Nationally Recognized Statistical Ratings Organization. - A nationally recognized statistical ratings organization (NRSRO) is a credit rating agency that provides an assessment of the creditworthiness of a firm or financial instrument(s) that is registered and approved by the Securities and Exchange Commission (SEC). Not all credit rating organizations are NRSROs Repurchase Agreements (REPOS). - is a contractual arrangement between a financial institution, or dealer, and an investor. This agreement normally can run for one or more days. The investor puts up his funds for a certain number of days at a stated yield. In return, he takes a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid plus interest.

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

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

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

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

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

U.S. Government Instrumentality Issues. Are government sponsored enterprises that are backed by the creditworthiness of the issuing agency, not the full faith and credit of the U.S. government. They do carry an implied guarantee of government assistance to the organization should it encounter financial difficulties. Issuers include: Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB), Federal Farm Credit Banks (FFCB) and Federal Home Loan Mortgage Corporation (FHLMC).

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To: Finance Sub-Committee Date: August 24, 2026
From: Will Fuentes, Finance Director
Subject: Investment Strategy for FY 2026-27

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

California Government Code Section 53646 (a) (2) recommends that on an annual basis, the City Investment Policy be submitted to its legislative body and any oversight committee for consideration at a public meeting. The Finance Sub-Committee is the oversight committee responsible for review of the Investment Policy. In addition to review of any proposed revisions to the Investment Policy, staff and the City’s investment advisors (Chandler) have prepared a report summarizing the economic conditions for the quarter ending June 30, 2026, the City’s portfolio performance over the same period, and the recommended Investment Strategy for managing the City’s available invested funds in FY 2026-27.

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

As a means to implement the policy, it is important to develop a strategy for achieving the stated objectives. Likewise, the strategy should be reviewed periodically to determine whether it needs to be modified in light of changing economic and financial conditions. This document will serve as the City’s investment strategy for the current fiscal year (FY 2026- 27) and will be reviewed annually in conjunction with the review of the City’s Investment Policy or sooner if conditions warrant.

MEMORANDUM CITY OF CAMPBELL
Finance Department
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Investment Strategy FY 2026-27

SUMMARY OF CURRENT STRATEGY AND RECOMMENDATIONS
Since July 1, 2024, City staff has partnered with Chandler Asset Management to assist with the investment of City funds. As part of this partnership, City staff continues to manage liquid funds to meet near-term expenditures and Chandler manages longer-term funds not needed for immediate use. Chandler though also provides expertise and support to City staff as needed regarding the optimal investment of near-term liquid funds.

In regard to Investment Strategy for FY 2026-27, Chandler and City staff continue to recommend the use of ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index as the target benchmark to invest funds and to evaluate Chandler’s performance against.

Chandler will invest funds in accordance with the City's Investment Policy, and based on market conditions, seek to maximize return in comparison to the selected benchmark while also prioritizing safety and liquidity.

Table 1 below provides of summary of City Investments by institution as of June 30, 2026 as shown in the Quarterly Investment Report provided to City Council on August 3, 2026:

Table 1 – City Investments by Institution as of June 30, 2026:

Institution Market Value Rate of Return
(QTR)
Rate of Return
(ANNUAL)
Benchmark
(QTR)
LAIF Main Acct $17,417,023 3.812% 4.005% N/A
LAIF Meas O 3,168,947 3.812% 4.005% N/A
CAMP Main Acct 18,516,267 3.777% 4.024% N/A
CAMP Meas K 7,450,465 3.777% 4.024%
BNY / Chandler 21,301,734 4.197% 3.962% 4.16%
BNY / LRB TARB 2,701 N/A N/A N/A
TOTAL $67,857,137
As shown above, the City maintains good liquidity in its Local Agency Investment Fund (LAIF) accounts and its California Asset Management Program (CAMP) accounts. Both are short-term investment tools and provide the City with $46.6 million of liquidity. When soon to be spent down Measure O funds of $3.2 million are excluded, the City has remaining regular liquidity of $43.4 million for ongoing operational needs. However, since the Measure K balance of $7.5 million is currently tied up in litigation and cannot be utilized, this drops liquidity further to $35.9 million. This is still a strong position, but would be much stronger if continually accruing Measure K funds could be utilized.

As in the past, staff continues to recommend that the City maintain sufficient liquidity to cover daily operating cash flows for a minimum of 3 months to provide a reasonable cushion for fluctuations in the portfolio balance and for unforeseen emergencies. Average monthly disbursements over the last fiscal year (FY 2025-26), exclusive of Measure O expenditures Item 9.1
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Investment Strategy FY 2026-27

were approximately $7.3 million. Therefore, staff recommends retaining a liquidity target of $21.9 million (3 months) in the Local Agency Investment Fund (LAIF), the California Asset Management Program (CAMP), and/or similar secure, stable, and liquid pooled investment funds as allowed by the City’s Investment Policy such CalFIT (a new liquidity pool recently opened by Chandler Asset Management). At the current amount of $35.9 million, as previously stated and exclusive or Measure O and Measure K monies, the City is currently $14.0 million over its liquidity target. And if Measure K monies become available to use in the future, the City will have more excess liquidity to invest in both the short-term and longterm. As such, staff will look to contribute additional funds into the City’s Chandler managed portfolio as appropriate investment options become available. As of last quarter, Chandler is currently earning slightly more than both LAIF and CAMP as shown in Table 1, the investment returns it provides are locked in for a longer term of up to 5 years, and it is beating the performance benchmark agreed to. The Chandler account also provides the City with diversification, safety, consistent returns, and a hedge against LAIF, CAMP, and other liquidity pools once short-term interest rates return to normal levels once again. While LAIF and CAMP interest rates have been elevated for several years, given historical trends, they will likely drop and fall further below the rates earned by Chandler. LAIF and CAMP typically hover in the 1% to 2% range long-term.

ECONOMIC UPDATE AND OUTLOOOK
Shown as Attachment A, Chandler has prepared a comprehensive Economic Update for the quarter ending June 30, 2026 which covers the following topics on a national level:
• Significant Economic Highlights
• Employment
• Job Openings & Labor Turnover
• Energy Markets
• Inflation
• Consumer Spending and Confidence
• Leading Economic Indicators
• Housing
• Purchasing Managers Index
• Manufacturing
• Gross Domestic Product (GDP)
• Federal Reserve
• Bond Yields
Additionally, as it relates to employment in California, the state lost 2,900 nonfarm payroll jobs in June 2026. Statewide unemployment was 5.2% in June 2026; down from 5.3% in May 2026 and 5.5% in June 2025. In Santa Clara County, the unemployment rate was 4.0% in June 2026; up from 3.4% in May 2026 and down from 4.4% in June 2025. And in Campbell, the unemployment rate was 4.0% in June 2026; up from 3.4% in May 2026 and down from 4.4% in June 2025. At its pandemic high point in April 2020, the Campbell unemployment rate reached 11.2%.

RECOMMENDATION
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Investment Strategy FY 2026-27

It is recommended that the Finance sub-Committee approve the proposed strategy for FY 2026-27.

Distribution:

Daniel E. Furtado, Mayor
Sergio Lopez, Council Member
Brian Loventhal, City Manager
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INVESTMENT REPORT
City of Campbell | As of June 30, 2026
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:

For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement.

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TABLE OF CONTENTS

ECONOMIC UPDATE

ACCOUNT PROFILE

PORTFOLIO HOLDINGS

TRANSACTIONS
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ECONOMIC UPDATE
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▪
▪
▪
Energy prices and inflation remained the primary drivers of the macro backdrop as the U.S.-Israel-Iran conflict entered its third month, disrupting global oil supply. Headline CPI accelerated at the fastest pace in more than three years, reflecting volatility in the energy component. Crude oil, however, retraced roughly 20% from its May–early June peak as diplomatic progress between the United States and Iran pointed to a potential framework for de-escalation. The labor market remained resilient, with continued payroll growth and subdued jobless claims. Risk assets held firm, as equities hovered near record highs and credit spreads remained historically tight amid broadly better-than-expected corporate earnings. Taken together, the current market environment has further constrained the case for near-term monetary policy easing, leading the Chandler team to push out its expected timing for rate cuts beyond the six-month investment horizon.

The Federal Reserve’s June FOMC meeting ended with policymakers unanimously holding the target range at 3.50%–3.75%, a notable shift from the 8–4 split at April’s meeting, which marked Jerome Powell’s final session as Chair. Under new Chair Kevin Warsh, sworn in on May 22, the Committee released an unusually concise statement that referenced Middle East tensions and energy supply disruptions while removing prior forward guidance that had suggested a bias toward rate cuts. Updated projections leaned more hawkish, with 9 of 18 officials expecting at least one rate hike this year and 6 anticipating multiple increases. The shift signals that restoring price stability has reemerged as the central focus of monetary policy deliberations.

The Treasury yield curve flattened modestly in June as short-term yields responded to a more hawkish shift in Federal Reserve guidance.

The 2-year yield rose to 4.15% from 3.98% the prior month, while the 10-year yield edged down slightly to 4.44% from 4.45%. As a result, the 2s/10s spread narrowed to 29 basis points, down from roughly 47 basis points a month earlier and significantly below the 69 basis point spread at the start of the year. Meanwhile, the 3-month/10-year spread remained positive at 64 basis points. Front-end rates absorbed the bulk of the Fed’s updated rate outlook, while longer maturities were partly anchored by a late-month decline in oil prices.

ECONOMIC UPDATE
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-400
-200
0 200
400
600
800
1,000
MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
Nonfarm payrolls increased by just 57,000 in June, well below the 113,000 consensus and marking a sharp slowdown from May’s pace. The unemployment rate edged down to 4.2%, though the decline was driven by a drop in labor force participation to 61.5%, its lowest level since March 2021. Revisions further weakened the report’s signal. April payrolls were revised down by 31,000 to 148,000, while May was lowered by 43,000 to 129,000, resulting in a combined two-month downward revision of 74,000.

Source: US Department of Labor Source: US Department of Labor

EMPLOYMENT
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0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Job Openings
Recession
Historical Average In Thousands (000's)
Job openings were essentially unchanged at 7.6 million in May, remaining elevated by historical standards even as hiring momentum moderates. Gains in wholesale trade and accommodation and food services were offset by declines in health care and social assistance, as well as finance and insurance. April openings were revised down by 33,000 to 7.6 million, while hires were revised up by 99,000, highlighting ongoing churn but a broadly stable labor market backdrop.

Source: US Department of Labor

JOB OPENINGS & LABOR TURNOVER SURVEY
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Source: Bloomberg Indices Source: Bloomberg Indices

ENERGY MARKETS
Crude oil prices declined sharply in June as supply disruptions tied to the Middle East conflict began to ease. Tanker traffic through the Strait of Hormuz normalized, and signs of progress in U.S.–Iran negotiations helped unwind the geopolitical risk premium that had driven prices higher earlier in the year. West Texas Intermediate settled near $69.37 per barrel on June 30, while Brent crude closed around $72.96, both well below their recent peaks. Brent’s 21% monthly decline marked its steepest drop since March 2020, while WTI fell more than 20%, its largest monthly loss since late 2021. Beyond crude, broader energy markets also softened. Refined product cracks narrowed as gasoline and diesel demand showed signs of seasonal moderation, while U.S. natural gas prices remained range-bound amid ample storage and steady production. Taken together, the retracement in oil and broader energy prices reflects a rapid compression in geopolitical risk premia and improved near-term supply visibility, even as underlying structural risks in the region remain unresolved.

2.00 2.50

3.00 3.50

4.00 4.50

5.00 5.50

6.00 6.50
US Fuel Prices
Average Retail Price US Diesel
Average Retail Price US Gas
($) Per Gallon
40 60
80 100
120
140
160
Oil Prices
West Texas Intermediate (WTI Spot Cushing)
Dated Brent (Global Spot)
Price Per Barrel (WTI Spot)
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0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY %
Change
PCE Core Deflator YOY %
Change
Fed Target
YOY (%) Change

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
Inflation firmed in May, with the Personal Consumption Expenditures (PCE) price index rising 0.4% on the month and 4.1% year over year, up from 3.8% in April and marking the highest annual rate of the current cycle. Core PCE, which excludes food and energy, increased 0.3% in May and 3.4% over the year. Energy prices remained the primary driver of the headline acceleration, reflecting supply disruptions tied to the Iranian conflict. A similar pattern was evident in the headline Consumer Price Index (CPI), which rose 0.5% on the month and 4.2% year over year, the fastest annual pace since 2023. Energy prices climbed 3.9% in May and 23.5% from a year earlier, largely due to crude oil reaching a four-year high. In contrast, core CPI rose a more modest 0.2% on the month and 2.9% year over year, indicating that inflation pressures remain concentrated in energy rather than broad-based.

Source: US Department of Labor Source: US Department of Commerce

INFLATION
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0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%
Retail Sales YOY % Change
YOY (%) Change Retail sales rose a robust 0.9% in May to $763.7 billion, nearly double the pace economists had penciled in and an acceleration from April's downwardly revised 0.4% gain. The closely watched control group, which feeds directly into gross domestic product calculations, advanced

0.7%, pointing to durable underlying demand. Gasoline station receipts rose as energy prices stayed high, while auto sales rebounded after an April pullback. The Conference Board's Consumer Confidence Index ticked up 0.6 points to 91.2 in June, though the improvement masked a further deterioration in how households view the job market, with the share calling jobs ‘hard-to-get’ climbing to a five year high.

Spending has proven more resilient than sentiment across recent months. 0 20
40 60
80 100
120
140
160
Index Level
Consumer Confidence
Recession
Source: US Department of Commerce Source: The Conference Board All time high is 144.70 (1/31/00); All time low is 25.30 (2/28/09)

CONSUMER
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-25.0%
-20.0%
-15.0%
-10.0%
-5.0%

0.0%

5.0%

10.0%

15.0%
Leading Economic Indicators (LEI)
Recession
YOY (%) Change
-1.00
-0.75
-0.50
-0.25

0.00 0.25

0.50 0.75

1.00 Chicago Fed National Activity Index (CFNAI)
Recession
3 Month Average
The Conference Board’s Leading Economic Index (LEI) edged up 0.1% in May to 99.3, following a revised 0.2% increase in April. Despite the monthly gains, the LEI’s six- and twelve-month growth rates remained negative at -0.6% and -1.5%, respectively. The advance was driven primarily by financial components, including equity prices and the interest rate spread, while consumer expectations continued to weigh on the index. The Chicago Fed National Activity Index fell to -0.10 in May from an upwardly revised 0.19 in April. Production-related and employment-related indicators each subtracted from the index, while the sales, orders, and inventories category made a small positive contribution.

Source: The Conference Board Source: Federal Reserve Bank of Chicago

LEADING INDICATORS OF ECONOMIC ACTIVITY
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0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2,200
2,400
In Thousands of Units
Annualized Housing Starts
Multi Family Housing Starts
Single Family Housing Starts
Housing starts declined sharply in May to a seasonally adjusted annual rate of 1,177,000, a 15.4% drop from a downwardly revised 1,392,000 in April. The pullback was driven primarily by multifamily construction, while single-family starts edged down a more modest

1.9% to 882,000; total multifamily starts came in at 295,000 units. The S&P CoreLogic Case-Shiller 20-City Composite rose 1.1% year over year in April, marking its first pickup since November 2025, following an upwardly revised 0.9% gain in March. Freddie Mac’s average 30- year fixed mortgage rate increased to 6.44% in May from 6.33% in April, reinforcing ongoing affordability constraints for prospective buyers.

Source: US Department of Commerce Source: S&P
-20.0%
-16.0%
-12.0%
-8.0%
-4.0%

0.0%

4.0%

8.0%

12.0%

16.0%

20.0%

24.0%
S&P/Case-Shiller 20 City Composite Home Price Index
Recession
YOY (%) Change

HOUSING
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40 45
50 55
60 65
70 Institute of Supply Management (ISM) Surveys
ISM Manufacturing ISM Services

EXPANDING

CONTRACTING
Manufacturing activity cooled slightly in June, with the Institute for Supply Management's Manufacturing Index easing to 53.3%, down 0.7 percentage point from May but still marking a sixth consecutive month of expansion. Services activity also moderated, as the ISM Services Index eased to 54.0% from 54.5%, a twenty-fourth consecutive month in expansion territory. Business activity and new orders both slowed, though the employment component jumped to 51.2% from 47.9%, its strongest reading since late 2021 and the first expansion in services hiring in four months.

Source: Institute for Supply Management

PURCHASING MANAGERS INDEX (PMI)
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Components of GDP 6/25 9/25 12/25 3/26

1.7% 2.3% 1.3% 0.4%
-2.7% 0.0% 0.4% 1.4%

4.8% 1.6% -0.2% -0.4%
-0.4% 0.2% -1.2% 0.6%

0.3% 0.2% 0.2% 0.2%

3.8% 4.4% 0.5% 2.1%
Personal Consumption Expenditures
Gross Private Domestic Investment
Net Exports and Imports
Federal Government Expenditures
Total
State and Local (Consumption and Gross
Investment) -2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Gross Domestic Product (GDP)
GDP QOQ % Change
GDP YOY % Change
Source: US Department of Commerce Source: US Department of Commerce Real gross domestic product increased at an annualized rate of 2.1% in the first quarter of 2026, according to the Bureau of Economic Analysis’ third estimate, up from 1.6% in the prior estimate and an acceleration from 0.5% in the fourth quarter of 2025. The 0.5 percentage point upward revision was driven primarily by a downward revision to imports—which subtract from GDP—partly offset by a downward revision to consumer spending.

GROSS DOMESTIC PRODUCT (GDP)
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Source: Federal Reserve Source: Bloomberg
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Federal Reserve Balance Sheet Assets
Recession
In $ millions
The Federal Open Market Committee (FOMC) held the target range for the federal funds rate at 3.50% to 3.75% at its June 16–17 meeting, with a unanimous 12–0 vote. This marked a notable shift from the April meeting—Jerome Powell’s last as chair—which saw four dissents in an 8–4 decision. The return to consensus under Chair Kevin Warsh signals a clear change in tone. Minutes from the June meeting are scheduled for release in early July. The June Summary of Economic Projections reflected a more hawkish outlook. The median projection for the federal funds rate at year-end 2026 rose to 3.8%, up from 3.4% in March, before easing to 3.6% in 2027 and 3.4% in 2028. Officials also revised their inflation forecasts, with headline PCE projected at 3.6% in 2026 (from 2.7%) and core PCE at 3.3%. By contrast, median projections for real GDP growth and the unemployment rate—2.2% and 4.3%, respectively—were little changed.

FEDERAL RESERVE

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%
Effective Federal Funds Rate
Recession
Yield (%)
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Source: Bloomberg Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

5.5%
US Treasury Yield Curve
Jun-26
Mar-26
Jun-25
Yield (%)
Treasury yields ended June mixed, with a modest flattening across the curve as markets digested a more hawkish Federal Reserve signal.

The 2-year yield rose to 4.15% from 3.98% at the end of May, while the 10-year yield edged down to 4.44% from 4.45%. The 2s/10s spread narrowed to 29 basis points, down from 47 basis points a month earlier. The 3-month/10-year spread remained positive at roughly 64 basis points at month-end. Relative to the 69 basis point spread at the start of 2026, the curve has flattened materially year to date, reflecting a repricing higher in front-end rates as expectations shift toward the possibility of further Fed tightening rather than easing.

BOND YIELDS
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ACCOUNT PROFILE
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OBJECTIVES
Investment Objectives
Safety of principal is the foremost objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all requirements that may be reasonably anticipated. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs.

Chandler Asset Management Performance Objective
The performance objective for the portfolio is to earn a total rate of return through a market cycle that is equal to or above the return on the benchmark index.

Strategy
In order to achieve this objective, the portfolio invests in high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 16 Item 9.1
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PORTFOLIO CHARACTERISTICS
City of Campbell | Account #11214 | As of June 30, 2026 Benchmark* 6/30/2026
Portfolio
3/31/2026
Portfolio
Average Maturity (yrs) 2.64 3.05 3.08
Average Modified Duration 2.46 2.57 2.61
Average Purchase Yield 4.19% 4.18%
Average Market Yield 4.16% 4.33% 4.05%
Average Quality** AA+ AA+ AA
Total Market Value 21,502,725 21,422,002
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 17 Item 9.1
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SECTOR DISTRIBUTION
City of Campbell | Account #11214 | As of June 30, 2026 Sector as a Percentage of Market Value
Sector 06/30/2026 03/31/2026
US Treasury 43.88% 45.01%
Corporate 27.19% 27.31%
Agency CMBS 12.83% 10.85%
ABS 10.06% 9.07%
Agency 2.33% 2.34%
Supras 2.21% 2.24%
Muni Bonds 0.97% 0.98%
Money Mkt Fd 0.54% 0.56%
Comm Paper -- 1.64%
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ISSUERS
City of Campbell | Account #11214 | As of June 30, 2026 Issuer Investment Type % Portfolio
United States US Treasury 43.88%
Federal Home Loan Mortgage Corp Agency CMBS 12.83%
Federal Home Loan Banks Agency 2.33%
International Bank for Recon and Dev Supras 2.21%
Toyota Motor Corporation Corporate 1.86%
American Express Credit Master Trust ABS 1.74%
Bank of America Corporation Corporate 1.30%
JPMorgan Chase & Co. Corporate 1.25%
GM Financial Auto Leasing Trust ABS 1.20%
Nat Rural Util Coop Fin Corp Corporate 1.18%
Caterpillar Inc. Corporate 1.18%
Prologis, Inc. Corporate 1.18%
Cisco Systems, Inc. Corporate 1.18%
Marsh & McLennan Companies, Inc. Corporate 1.17%
BMW Vehicle Owner Trust ABS 1.17%
Realty Income Corporation Corporate 1.15%
Meta Platforms, Inc. Corporate 1.15%
Duke Energy Corporation Corporate 1.10%
Eli Lilly and Company Corporate 1.10%
John Deere Owner Trust ABS 1.09%
PACCAR Inc Corporate 1.08%
Deere & Company Corporate 1.07%
BNY Mellon Corp Corporate 1.05%
State of California Muni Bonds 0.97%
U.S. Bancorp Corporate 0.94%
Alphabet Inc. Corporate 0.92%
Walmart Inc. Corporate 0.87%
Mastercard Incorporated Corporate 0.84%
State Street Corporation Corporate 0.82%
American Express Company Corporate 0.79%
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ISSUERS
City of Campbell | Account #11214 | As of June 30, 2026 Issuer Investment Type % Portfolio
Honda Auto Receivables Owner Trust ABS 0.75%
Morgan Stanley Corporate 0.72%
Salesforce, Inc. Corporate 0.66%
Visa Inc. Corporate 0.65%
Toyota Auto Receivables Owner Trust ABS 0.64%
GM Financial Securitized Term ABS 0.64%
Abbvie Inc. Corporate 0.59%
Ford Credit Auto Owner Trust ABS 0.56%
Hyundai Motor Company ABS 0.56%
Mercedes-Benz Auto Receivables Trust ABS 0.54%
Money Market Fund Money Mkt Fd 0.54%
WF Card Issuance Trust ABS 0.52%
NVIDIA Corporation Corporate 0.51%
The Goldman Sachs Group, Inc. Corporate 0.49%
Merck & Co., Inc. Corporate 0.40%
Hyundai Auto Receivables Trust ABS 0.38%
Mercedes-Benz Auto Lease Trust ABS 0.28%
Cash Cash 0.00%
TOTAL 100.00%
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QUALITY DISTRIBUTION
City of Campbell | Account #11214 | As of June 30, 2026 S&P Rating Moody’s Rating Fitch Rating
Rating 06/30/2026 03/31/2026
AAA 11.28% 10.20%
AA 64.98% 62.63%
A 19.22% 20.85%
BBB 0.49% 0.49%
A-1 -- 1.62%
NA 4.03% 4.19%
Rating 06/30/2026 03/31/2026
Aaa 9.21% 9.08%
Aa 68.68% 66.23%
A 17.89% 19.63%
P-1 -- 1.62%
NA 4.22% 3.44%
Rating 06/30/2026 03/31/2026
AAA 17.76% 15.16%
AA 54.53% 57.47%
A 9.45% 9.51%
NA 18.25% 17.86%
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DURATION DISTRIBUTION
City of Campbell | Account #11214 | As of June 30, 2026 Date 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
06/30/2026 0.6% 0.0% 9.8% 20.4% 28.5% 34.1% 6.6% 0.0% 0.0% 03/31/2026 2.4% 0.0% 6.7% 22.6% 21.5% 36.1% 10.7% 0.0% 0.0% 22 Item 9.1
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INVESTMENT PERFORMANCE
City of Campbell | Account #11214 | As of June 30, 2026 Total Rate of Return: Inception | 03/01/2025
TOTAL RATE OF RETURN* 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception City of Campbell 0.38% 3.11% 3.89%
Benchmark 0.24% 2.71% 3.47%
*Periods over 1 year are annualized.

Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index 23 Item 9.1
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PORTFOLIO HOLDINGS
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HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
ABS
891940AC2 TAOT 2023-A A3 4.63 09/15/2027 15,125.80 11/14/2024

4.63%
15,131.70
15,126.69
100.08

3.97%
15,138.26

31.13 0.07%

11.57 NA/AAA
AAA

1.21 0.12
362962AD4 GMALT 2025-2 A3 4.58
05/22/2028 95,000.00 05/20/20254.84%
94,998.42
94,999.00
100.23

4.29%
95,215.75
132.95

0.45%
216.75
NA/AAA
AAA

1.90 0.68
379965AD8 GMALT 2025-3 A3 4.17
08/21/2028 90,000.00 08/05/20254.18%
89,986.32
89,990.31

99.89 4.33%
89,896.68
114.68

0.42%
(93.63)
NA/AAA
AAA

2.14 0.94
47800RAD5 JDOT 2024 A3 4.96 11/15/2028 132,532.42 02/20/2025

4.63%
133,329.69
132,939.13
100.37

4.44%
133,026.37
292.16

0.62%

87.24 Aaa/NA
AAA

2.38 0.65
096919AD7 BMWOT 2024-A A3 5.18
02/26/2029 248,342.43 --4.69%
250,922.87
249,733.23
100.51

4.33%
249,599.54
214.40

1.17%
(133.69)
Aaa/AAA
NA

2.66 0.56
36275AAD1 GMALT 2026-2 A3 4.3 03/20/2029 70,000.00 05/05/2026

4.40%
69,992.43
69,992.78

99.86 4.43%
69,898.92

75.25 0.33%
(93.86)
NA/AAA
AAA

2.72 1.57
89239TAD4 TAOT 2024-D A3 4.4 06/15/2029 57,127.36 10/10/2024

4.51%
57,124.17
57,125.34
100.05

4.37%
57,158.15
111.72

0.27%

32.82 Aaa/AAA
NA

2.96 0.72
02589BAE0 AMXCA 2024-3 A 4.65 07/15/2027 200,000.00 02/20/2025

4.57%
200,546.88
200,237.15
100.45

4.24%
200,908.20
413.33

0.94%
671.05
NA/AAA
AAA

1.04 0.99
34535VAD6 FORDO 2024-D A3 4.61
08/15/2029 120,000.00 11/19/20244.66%
119,996.15
119,997.46
100.30

4.32%
120,361.44
245.87

0.56%
363.98
Aaa/NA
AAA

3.13 0.90
38014AAD3 GMCAR 2024-4 A3 4.4
08/16/2029 55,565.55 10/08/20244.32%
55,554.84
55,558.62
100.08

4.31%
55,612.61
101.87

0.26%

53.99 Aaa/AAA
NA

3.13 0.62
47800DAD6 JDOT 2025 A3 4.23 09/17/2029 100,000.00 03/04/2025

5.09%
99,993.71
99,995.53

99.88 4.35%
99,876.10
188.00

0.47%
(119.43)
Aaa/NA
AAA

3.22 1.47
92970QAE5 WFCIT 2024-2 A 4.29 10/15/2029 110,000.00 10/17/2024

4.29%
109,983.65
109,989.18
100.06

4.28%
110,066.22
209.73

0.52%

77.04 Aaa/AAA
NA

3.29 1.23
89231HAD8 TAOT 2025-B A3 4.34 11/15/2029 65,000.00 04/24/2025

4.82%
64,996.28
64,997.24
100.04

4.35%
65,023.40
125.38

0.30%

26.16 NA/AAA
AAA

3.38 1.20
362955AD8 GMCAR 2025-1 A3 4.62
12/17/2029 80,000.00 01/09/20255.03%
79,994.06
79,995.82
100.26

4.32%
80,206.08
154.00

0.38%
210.26
Aaa/NA
AAA

3.47 0.73
58773DAD6 MBART 2025-1 A3 4.78
12/17/2029 115,000.00 01/14/20254.84%
114,975.54
114,982.70
100.44

4.32%
115,503.93
244.31

0.54%
521.23
Aaa/NA
AAA

3.47 0.86
44935XAD7 HART 2025-B A3 4.36 12/17/2029 80,000.00 06/03/2025

4.36%
79,992.78
79,994.46
100.03

4.37%
80,024.56
155.02

0.38%

30.10 NA/AAA
AAA

3.47 1.20
25 Item 9.1
Tuesday, September 15, 2026 112 of 234

HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
58770YAD3 MBALT 2026-A A3 3.93
01/15/2030 60,000.00 01/13/20263.97%
59,988.10
59,989.42

99.21 4.40%
59,527.98
104.80

0.28%
(461.44)
Aaa/NA
AAA

3.54 1.78
02582JKP4 AMXCA 2025-2 A 4.28 04/15/2030 170,000.00 05/06/2025

4.28%
169,996.92
169,997.63

99.90 4.38%
169,828.64
323.38

0.80%
(168.99)
NA/AAA
AAA

3.79 1.69
43814YAD3 HAROT 2026-2 A3 4.3 11/15/2030 160,000.00 05/05/2026

3.02%
159,995.38
159,995.52

99.74 4.46%
159,590.88
305.78

0.75%
(404.64)
Aaa/AAA
NA

4.38 2.14
44935KAD5 HART 26B A3 4.81 02/18/2031 120,000.00 06/09/2026

4.86%
119,985.52
119,985.64
100.24

4.44%
120,288.48
224.47

0.56%
302.84
NA/AAA
AAA

4.64 2.20
2,147,485.41 100.14 2,146,752.19 10.06% 3.01
Total ABS 2,143,693.55 4.48% 2,145,622.83 4.35% 3,768.21 1,129.35 1.16 AGENCY
3130B7QM9 FEDERAL HOME LOAN BANKS 3.5
09/09/2027 500,000.00 09/23/20253.63%
498,795.00
499,266.89

99.27 4.13%
496,338.50
5,444.44

2.33%
(2,928.39)
Aa1/AA+
AA+

1.19 1.14
498,795.00 99.27 496,338.50 2.33% 1.19
Total Agency 500,000.00 3.63% 499,266.89 4.13% 5,444.44 (2,928.39) 1.14

AGENCY CMBS
3137FJEH8 FHMS K-081 A2 3.9 08/25/2028 250,000.00 11/21/2024

4.53%
244,335.94
246,788.68

98.79 4.41%
246,968.00
812.50

1.16%
179.32
Aa1/AA+
AAA

2.15 1.99
3137FJKE8 FHMS K-082 A2 3.92 09/25/2028 250,000.00 06/10/2025

4.27%
246,992.19
247,971.77

98.81 4.41%
247,029.00
816.67

1.16%
(942.77)
Aa1/AA+
AAA

2.24 2.02
3137FKSH0 FHMS K-086 A2 3.859 11/25/2028 150,000.00 09/18/2024

3.82%
150,005.86
150,003.34

98.57 4.43%
147,858.60
482.38

0.69%
(2,144.74)
Aaa/AA+
AA+

2.41 2.20
3137FLN91 FHMS K-091 A2 3.505 03/25/2029 300,000.00 11/14/2024

4.62%
287,074.22
291,945.16

97.59 4.43%
292,779.00
876.25

1.37%
833.84
Aa1/AAA
AA+

2.73 2.45
3137FMCR1 FHMS K-093 A2 2.982 05/25/2029 146,836.27 10/16/2024

4.15%
139,907.44
142,497.89

96.24 4.43%
141,313.61
364.89

0.66%
(1,184.28)
Aa1/AA+
AAA

2.90 2.54
3137FNAE0 FHMS K-095 A2 2.785 06/25/2029 250,000.00 03/13/2025

4.39%
234,707.03
239,386.52

95.51 4.43%
238,767.75
580.21

1.12%
(618.77)
Aa1/AA+
AAA

2.99 2.70
3137FPHK4 FHMS K-098 A2 2.425 08/25/2029 300,000.00 10/17/2024

4.26%
276,445.31
284,778.59

94.24 4.43%
282,714.90
606.25

1.33%
(2,063.69)
Aa1/AA+
AAA

3.15 2.88
26 Item 9.1
Tuesday, September 15, 2026 113 of 234

HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
3137FRUJ8 FHMS K-105 A2 1.872 01/25/2030 275,000.00 03/17/2025

4.43%
244,868.16
252,935.49

91.68 4.44%
252,131.00
429.00

1.18%
(804.49)
Aa1/AA+
AAA

3.57 3.32
3137FWG79 FHMS K-115 A2 1.383 06/25/2030 250,000.00 06/17/2026

4.39%
222,822.27
222,973.36

88.98 4.45%
222,452.50
288.13

1.04%
(520.86)
Aa1/AA+
AAA

3.99 3.75
3137FX3Q9 FHMS K-117 A2 1.406 08/25/2030 250,000.00 06/03/2026

4.46%
221,455.08
221,888.44

88.69 4.46%
221,732.25
292.92

1.04%
(156.19)
Aa1/AA+
AAA

4.15 3.88
3137F62M8 FHMS K-118 A2 1.493 09/25/2030 250,000.00 01/29/2026

4.03%
223,632.81
226,025.53

88.83 4.46%
222,068.25
311.04

1.04%
(3,957.28)
Aa1/AA+
AAA

4.24 3.94
3137F83Q4 FHMS K-121 A2 1.547 10/25/2030 250,000.00 01/08/2026

4.00%
223,603.52
226,194.12

88.68 4.46%
221,701.50
322.29

1.04%
(4,492.62)
Aa1/AA+
AAA

4.32 4.06
2,715,849.83 93.87 2,737,516.36 12.83% 3.24
Total Agency CMBS 2,921,836.27 4.31% 2,753,388.90 4.44% 6,182.51 (15,872.54) 2.98 CASH
CCYUSD Receivable 509.68 -- 509.68
509.68

1.00 509.68

0.00 0.00%

0.00 Aaa/AAA
AAA

0.00 0.00
509.68 1.00 509.68 0.00% 0.00
Total Cash 509.68 509.68 0.00 0.00 0.00

CORPORATE
857477CP6 STATE STREET CORP 4.33
10/22/2027 175,000.00 11/07/20244.54%
173,976.25
174,546.06
100.02

4.31%
175,043.40
1,452.35

0.82%
497.34
Aa3/A
AA1.311.25
17275RBW1 CISCO SYSTEMS INC 4.55
02/24/2028 250,000.00 03/11/20254.32%
251,557.50
250,850.09
100.37

4.31%
250,916.25
4,012.85

1.18%

66.16 A1/AANA1.65

1.47 00287YDY2 ABBVIE INC 4.65 03/15/2028 125,000.00 02/18/2025

4.70%
124,833.75
124,906.94
100.43

4.38%
125,537.63
1,711.46

0.59%
630.68
A2/ANA1.71

1.53 79466LAQ7 SALESFORCE INC 4.5 03/15/2028 140,000.00 03/12/2026

4.37%
140,339.50
140,286.45

99.87 4.57%
139,823.32
1,890.00

0.66%
(463.13)
A2/A+
NA

1.71 1.60
06406RBG1 BANK OF NEW YORK MELLON
CORP 3.992 06/13/2028 225,000.00 09/05/20244.31%
223,128.00
224,356.85

99.61 4.61%
224,118.00
449.10

1.05%
(238.85)
Aa3/A
AA1.960.92
46647PDG8 JPMORGAN CHASE & CO 4.851
07/25/2028 150,000.00 08/12/20244.62%
150,933.00
150,337.30
100.29

5.07%
150,435.60
3,153.15

0.71%

98.30 A1/A
AA2.071.01
27 Item 9.1
Tuesday, September 15, 2026 114 of 234

HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
46647PEU6 JPMORGAN CHASE & CO 4.915
01/24/2029 115,000.00 01/16/20254.92%
115,000.00
115,000.00
100.49

4.53%
115,557.98
2,465.01

0.54%
557.98
A1/A
AA2.571.46
91159HJK7 US BANCORP 4.653 02/01/2029 200,000.00 09/05/2024

4.47%
201,116.00
200,520.74
100.07

4.71%
200,140.00
3,877.50

0.94%
(380.74)
A3/A
A+

2.59 1.48
756109CW2 REALTY INCOME CORP 3.95
02/01/2029 250,000.00 01/07/20264.01%
249,577.50
249,643.14

98.51 4.57%
246,277.50
4,114.58

1.15%
(3,365.64)
A3/ANA2.59

2.39 24422EXT1 JOHN DEERE CAPITAL CORP 4.85
06/11/2029 225,000.00 08/12/20244.40%
229,338.00
227,647.58
101.25

4.39%
227,817.68
606.25

1.07%
170.09
A1/A
A+

2.95 2.71
025816EJ4 AMERICAN EXPRESS CO 4.351
07/20/2029 170,000.00 07/21/20254.35%
170,000.00
170,000.00

99.49 4.56%
169,130.62
3,307.97

0.79%
(869.38)
A2/AA3.05

1.90 89236TMK8 TOYOTA MOTOR CREDIT CORP

4.55 08/09/2029 225,000.00 08/12/20244.49%
225,567.00
225,353.21

99.96 4.56%
224,912.93
4,038.13

1.05%
(440.28)
A1/A+
A+

3.11 2.82
532457CQ9 ELI LILLY AND CO 4.2 08/14/2029 235,000.00 08/12/2024

4.22%
234,769.70
234,856.22

99.48 4.38%
233,770.72
3,756.08

1.10%
(1,085.51)
Aa3/AANA3.12

2.85 26442CAY0 DUKE ENERGY CAROLINAS LLC

2.45 08/15/2029 250,000.00 12/18/20244.72%
226,517.50
234,239.10

93.99 4.54%
234,969.75
2,313.89

1.10%
730.65
Aa3/A
NA

3.13 2.93
61748UAK8 MORGAN STANLEY 4.133
10/18/2029 155,000.00 10/17/20254.25%
155,019.50
155,015.00

98.64 4.70%
152,884.25
1,299.02

0.72%
(2,130.75)
A1/AA+3.30

2.15 38141GD27 GOLDMAN SACHS GROUP INC

4.153 10/21/2029 105,000.00 10/14/20254.37%
105,000.00
105,000.00

98.59 4.72%
103,519.50
847.90

0.49%
(1,480.50)
A2/BBB+
A

3.31 2.15
14913UAU4 CATERPILLAR FINANCIAL SERVICES
CORP 4.7 11/15/2029 250,000.00 11/12/20244.74%
249,592.50
249,724.84
100.77

4.45%
251,930.50
1,501.39

1.18%
2,205.66
A1/A
A+

3.38 3.07
89236TNA9 TOYOTA MOTOR CREDIT CORP

4.95 01/09/2030 170,000.00 01/06/20255.00%
169,636.20
169,743.39
101.15

4.59%
171,951.26
4,020.50

0.81%
2,207.87
A1/A+
A+

3.53 3.13
63743HFX5

NATIONAL RURAL UTILITIES
COOPERATIVE FINANCE CORP 4.95
02/07/2030
250,000.00
02/20/2025

4.90%
250,550.00
250,397.14
101.05

4.63%
252,634.50
4,950.00

1.18%
2,237.36
A2/NA
A

3.61 3.14
571748CA8 MARSH & MCLENNAN
COMPANIES INC 4.65 03/15/2030 250,000.00 03/24/20254.67% 249,755.00
249,817.46

99.90 4.68%
249,747.25
3,422.92

1.17%
(70.21)
A3/AA3.71

3.32 931142FN8 WALMART INC 4.35 04/28/2030 185,000.00 04/23/2025

4.39%
184,679.95
184,755.14
100.19

4.29%
185,355.94
1,408.31

0.87%
600.80
Aa2/AA
AA

3.83 3.40
69371RT71 PACCAR FINANCIAL CORP 4.55
05/08/2030 230,000.00 05/05/20254.59%
229,643.50
229,725.30
100.63

4.37%
231,458.66
1,540.68

1.08%
1,733.36
A1/A+
NA

3.85 3.48
28 Item 9.1
Tuesday, September 15, 2026 115 of 234

HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
30303MAB8 META PLATFORMS INC 4.2
11/15/2030 250,000.00 11/13/20254.16%
250,482.50
250,421.68

98.43 4.60%
246,078.25
1,341.67

1.15%
(4,343.43)
Aa3/AANA4.38

3.93 74340XCQ2 PROLOGIS LP 4.75 01/15/2031 250,000.00 01/14/2026

4.22%
255,812.50
255,271.73
100.51

4.62%
251,286.50
5,475.69

1.18%
(3,985.23)
A2/A
NA

4.54 3.89
92826CAZ5 VISA INC 4.1 02/12/2031 140,000.00 02/03/2026

4.13%
139,812.40
139,826.68

98.91 4.36%
138,474.98
2,216.28

0.65%
(1,351.70)
Aa3/AANA4.62

4.09 02079KBK2 ALPHABET INC 4.1 02/15/2031 200,000.00 02/12/2026

4.10%
200,011.33
200,010.43

98.26 4.52%
196,516.00
3,143.33

0.92%
(3,494.43)
Aa2/AA+
NA

4.63 4.10
06051GJB6 BANK OF AMERICA CORP 2.592
04/29/2031 300,000.00 05/20/20265.02%
275,859.00
276,407.66

92.28 5.02%
276,825.30
1,339.20

1.30%
417.64
A1/AAA4.83

3.56 58933YCK9 MERCK & CO INC 4.65 05/22/2031 85,000.00 05/18/2026

4.66%
84,947.30
84,948.45
100.16

4.61%
85,138.98
428.19

0.40%
190.52
Aa3/A+
NA

4.89 4.31
57636QBL7 MASTERCARD INC 4.6 06/08/2031 180,000.00 06/04/2026

4.62%
179,856.00
179,857.81

99.85 4.63%
179,723.34
529.00

0.84%
(134.47)
Aa3/A+
NA

4.94 4.36
67066GAR5 NVIDIA CORP 4.5 06/15/2031 110,000.00 06/15/2026

4.54%
109,791.00
109,792.49

99.65 4.58%
109,610.60
178.75

0.51%
(181.89)
Aa1/AA
NA

4.96 4.39
Total Corporate 5,845,000.00 4.49%
5,807,102.38
5,813,258.88

99.30 4.56%
5,801,587.17
70,791.16

27.19%
(11,671.72)

3.34 2.79

MONEY MARKET
FUND
X9USDDGCM BNY DREYFUS GVT CM INST 114,342.50 --

3.55%
114,342.50
114,342.50

1.00 3.55%
114,342.50

0.00 0.54%

0.00 Aaa/AAAm
NA

0.00 0.00
Total Money Market
Fund 114,342.50 3.55%
114,342.50
114,342.50

1.00 3.55%
114,342.50

0.00 0.54%

0.00 0.00

0.00 MUNICIPAL BONDS
13063EGT7 CALIFORNIA STATE 4.5 08/01/2029 205,000.00 10/30/2024

4.38%
206,080.35
205,703.79
100.46

4.34%
205,941.36
3,843.75

0.97%
237.57
Aa2/AAAA3.09

2.80 Total Municipal
Bonds 205,000.00 4.38%
206,080.35
205,703.79
100.46

4.34%
205,941.36
3,843.75

0.97%
237.57

3.09 2.80

SUPRANATIONAL
29 Item 9.1
Tuesday, September 15, 2026 116 of 234

HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
459058LN1

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 3.875 10/16/2029
350,000.00
12/13/2024

4.29%
343,689.50
345,698.85

99.00 4.20%
346,511.55
2,824.50

1.62%
812.70
Aaa/AAA
NA

3.30 3.03
459058LR2

INTERNATIONAL BANK FOR

RECONSTRUCTION AND
DEVELOPM 4.125 03/20/2030
125,000.00
03/14/2025

4.20%
124,553.75
124,668.12

99.70 4.21%
124,623.50
1,446.61

0.58%
(44.62)
Aaa/AAA
NA

3.72 3.38
Total Supranational 475,000.00 4.27%
468,243.25
470,366.97

99.19 4.20%
471,135.05
4,271.11

2.21%
768.08

3.41 3.12

US TREASURY
91282CKV2 UNITED STATES TREASURY 4.625
06/15/2027 300,000.00 05/28/20263.90%
302,214.84
302,023.51
100.48

4.10%
301,443.90
606.56

1.41%
(579.61)
Aa1/AA+
AA+

0.96 0.93
91282CKZ3 UNITED STATES TREASURY 4.375
07/15/2027 375,000.00 08/08/20243.91%
379,804.69
376,701.85
100.25

4.13%
375,937.13
7,568.63

1.76%
(764.72)
Aa1/AA+
AA+

1.04 0.99
91282CFM8 UNITED STATES TREASURY 4.125
09/30/2027 350,000.00 10/31/20244.17%
349,521.48
349,794.73

99.97 4.14%
349,904.45
3,629.10

1.64%
109.72
Aa1/AA+
AA+

1.25 1.19
91282CPS4 UNITED STATES TREASURY 3.375
12/31/2027 300,000.00 05/28/20264.01%
297,105.47
297,269.88

98.86 4.17%
296,566.50

27.51 1.39%
(703.38)
Aa1/AA+
AA+

1.50 1.44
91282CGP0 UNITED STATES TREASURY 4.0
02/29/2028 375,000.00 08/08/20243.87%
376,552.73
375,726.76

99.73 4.16%
374,004.00
5,013.59

1.75%
(1,722.76)
Aa1/AA+
AA+

1.67 1.57
91282CHK0 UNITED STATES TREASURY 4.0
06/30/2028 350,000.00 08/20/20243.76%
353,007.81
351,558.34

99.69 4.16%
348,919.90

38.04 1.64%
(2,638.44)
Aa1/AA+
AA+

2.00 1.90
91282CNU1 UNITED STATES TREASURY 3.625
08/15/2028 250,000.00 01/29/20263.60%
250,156.25
250,130.66

98.91 4.17%
247,265.75
3,404.70

1.16%
(2,864.91)
Aa1/AA+
AA+

2.13 1.99
91282CJF9 UNITED STATES TREASURY 4.875
10/31/2028 375,000.00 08/08/20243.85%
389,765.63
383,157.44
101.54

4.17%
380,771.63
3,079.99

1.78%
(2,385.81)
Aa1/AA+
AA+

2.34 2.17
91282CPP0 UNITED STATES TREASURY 3.5
12/15/2028 250,000.00 01/29/20263.62%
249,169.92
249,290.08

98.45 4.17%
246,132.75
382.51

1.15%
(3,157.33)
Aa1/AA+
AA+

2.46 2.32
91282CKD2 UNITED STATES TREASURY 4.25
02/28/2029 375,000.00 11/26/20244.21%
375,585.94
375,366.87
100.21

4.17%
375,776.25
5,326.94

1.76%
409.38
Aa1/AA+
AA+

2.67 2.46
91282CKG5 UNITED STATES TREASURY 4.125
03/31/2029 350,000.00 11/18/20244.31%
347,498.05
348,423.13

99.88 4.17%
349,589.80
3,629.10

1.64%
1,166.67
Aa1/AA+
AA+

2.75 2.55
91282CKP5 UNITED STATES TREASURY 4.625
04/30/2029 375,000.00 08/08/20243.84%
387,583.01
382,542.51
101.20

4.17%
379,482.38
2,922.04

1.78%
(3,060.14)
Aa1/AA+
AA+

2.83 2.61
30 Item 9.1
Tuesday, September 15, 2026 117 of 234

HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
91282CEV9 UNITED STATES TREASURY 3.25
06/30/2029 350,000.00 11/18/20244.31%
334,591.80
339,981.01

97.43 4.17%
341,017.60

30.91 1.60%
1,036.59
Aa1/AA+
AA+

3.00 2.82
91282CLC3 UNITED STATES TREASURY 4.0
07/31/2029 350,000.00 08/20/20243.70%
354,634.77
352,891.27

99.52 4.17%
348,331.90
5,839.78

1.63%
(4,559.37)
Aa1/AA+
AA+

3.08 2.82
91282CLK5 UNITED STATES TREASURY 3.625
08/31/2029 400,000.00 --3.60%
400,687.50
400,350.33

98.40 4.17%
393,593.60
4,846.47

1.84%
(6,756.73)
Aa1/AA+
AA+

3.17 2.92
91282CLN9 UNITED STATES TREASURY 3.5
09/30/2029 400,000.00 --4.09%
389,617.18
393,076.14

97.97 4.17%
391,875.20
3,519.13

1.84%
(1,200.94)
Aa1/AA+
AA+

3.25 3.01
91282CLR0 UNITED STATES TREASURY 4.125
10/31/2029 400,000.00 --4.33%
396,388.68
397,543.66

99.84 4.18%
399,359.20
2,779.89

1.87%
1,815.54
Aa1/AA+
AA+

3.34 3.06
91282CMA6 UNITED STATES TREASURY 4.125
11/30/2029 400,000.00 12/11/20244.09%
400,546.88
400,376.24

99.84 4.17%
399,375.20
1,397.54

1.87%
(1,001.04)
Aa1/AA+
AA+

3.42 3.14
91282CMD0 UNITED STATES TREASURY 4.375
12/31/2029 400,000.00 --4.45%
398,679.69
399,067.06
100.64

4.17%
402,578.00

47.55 1.89%
3,510.94
Aa1/AA+
AA+

3.50 3.21
91282CMU2 UNITED STATES TREASURY 4.0
03/31/2030 300,000.00 04/07/20253.75%
303,375.00
302,541.46

99.36 4.18%
298,089.90
3,016.39

1.40%
(4,451.56)
Aa1/AA+
AA+

3.75 3.41
91282CMZ1 UNITED STATES TREASURY 3.875
04/30/2030 500,000.00 09/16/20253.57%
506,425.78
505,331.95

98.92 4.18%
494,590.00
3,264.27

2.32%
(10,741.95)
Aa1/AA+
AA+

3.83 3.50
91282CNG2 UNITED STATES TREASURY 4.0
05/31/2030 350,000.00 06/09/20254.08%
348,742.19
349,009.54

99.32 4.19%
347,634.70
1,185.79

1.63%
(1,374.84)
Aa1/AA+
AA+

3.92 3.58
91282CNK3 UNITED STATES TREASURY 3.875
06/30/2030 325,000.00 07/29/20253.95%
323,933.59
324,133.10

98.84 4.19%
321,242.35

34.22 1.51%
(2,890.75)
Aa1/AA+
AA+

4.00 3.66
91282CNN7 UNITED STATES TREASURY 3.875
07/31/2030 225,000.00 08/26/20253.77%
226,081.05
225,895.97

98.82 4.19%
222,345.68
3,636.83

1.04%
(3,550.29)
Aa1/AA+
AA+

4.08 3.68
91282CNX5 UNITED STATES TREASURY 3.625
08/31/2030 500,000.00 09/16/20253.58%
500,937.50
500,788.76

97.83 4.20%
489,160.00
6,058.08

2.29%
(11,628.76)
Aa1/AA+
AA+

4.17 3.77
91282CPN5 UNITED STATES TREASURY 3.5
11/30/2030 150,000.00 12/09/20253.77%
148,154.30
148,360.62

97.20 4.20%
145,792.95
444.67

0.68%
(2,567.67)
Aa1/AA+
AA+

4.42 4.03
91282CPR6 UNITED STATES TREASURY 3.625
12/31/2030 350,000.00 01/29/20263.82%
347,033.20
347,284.29

97.64 4.21%
341,755.75

34.48 1.60%
(5,528.54)
Aa1/AA+
AA+

4.50 4.10
Total US Treasury 9,425,000.00 3.93%
9,437,794.93
9,428,617.15

99.35 4.17%
9,362,536.45
71,764.71

43.88%
(66,080.70)

2.93 2.70
31 Item 9.1
Tuesday, September 15, 2026 118 of 234

HOLDINGS REPORT
City of Campbell | Account #11214 | As of June 30, 2026 Cusip Security Description Par Value/
Units
Purchase
Date
Purchase
Yield
Cost Value
Book Value
Mkt
Price
Mkt
YTM
Market Value
Accrued Int.
% of Port.

Gain/Loss
Moody's/
S&P/
Fitch
Maturity
Duration
Total Portfolio 21,630,382.00 4.19%
21,396,203.33
21,431,077.59

98.19 4.33%
21,336,659.25
166,065.91
100.00%
(94,418.34)

3.05 2.57
Total Market Value +
Accrued 21,502,725.16
32 Item 9.1
Tuesday, September 15, 2026 119 of 234

TRANSACTIONS
33 Item 9.1
Tuesday, September 15, 2026 120 of 234

TRANSACTION LEDGER
City of Campbell | Account #11214|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss

ACQUISITIONS
Purchase 05/13/2026 43814YAD3 160,000.00 HAROT 2026-2 A3 4.3 11/15/2030 99.997 3.02% (159,995.38) 0.00 (159,995.38) 0.00 Purchase 05/14/2026 36275AAD1 70,000.00 GMALT 2026-2 A3 4.3 03/20/2029 99.989 4.40% (69,992.43) 0.00 (69,992.43) 0.00 Purchase 05/21/2026 06051GJB6 300,000.00

BANK OF AMERICA
CORP 2.592
04/29/2031

91.953 5.02% (275,859.00) (475.20) (276,334.20) 0.00
Purchase 05/22/2026 58933YCK9 85,000.00 MERCK & CO INC 4.65 05/22/2031 99.938 4.66% (84,947.30) 0.00 (84,947.30) 0.00 Purchase 05/29/2026 91282CKV2 300,000.00

UNITED STATES
TREASURY 4.625
06/15/2027
100.738 3.90% (302,214.84) (6,289.49) (308,504.33) 0.00 Purchase 05/29/2026 91282CPS4 300,000.00

UNITED STATES
TREASURY 3.375
12/31/2027

99.035 4.01% (297,105.47) (4,167.47) (301,272.94) 0.00
Purchase 06/08/2026 3137FX3Q9 250,000.00 FHMS K-117 A2 1.406 08/25/2030 88.582 4.46% (221,455.08) (68.35) (221,523.43) 0.00 Purchase 06/08/2026 57636QBL7 180,000.00 MASTERCARD INC 4.6 06/08/2031 99.920 4.62% (179,856.00) 0.00 (179,856.00) 0.00 Purchase 06/17/2026 44935KAD5 120,000.00 HART 26B A3 4.81 02/18/2031 99.988 4.86% (119,985.52) 0.00 (119,985.52) 0.00 Purchase 06/18/2026 67066GAR5 110,000.00 NVIDIA CORP 4.5 06/15/2031 99.810 4.54% (109,791.00) 0.00 (109,791.00) 0.00 Purchase 06/23/2026 3137FWG79 250,000.00 FHMS K-115 A2 1.383 06/25/2030 89.129 4.39% (222,822.27) (211.29) (223,033.56) 0.00 Total Purchase 2,125,000.00 (2,044,024.29) (11,211.80) (2,055,236.09) 0.00 TOTAL
ACQUISITIONS 2,125,000.00 (2,044,024.29) (11,211.80) (2,055,236.09) 0.00

DISPOSITIONS
Maturity 05/26/2026 62479MES8 (350,000.00)
MUFG Bank, Ltd.,
New York Branch
05/26/2026
100.000 3.99% 350,000.00 0.00 350,000.00 0.00
Total Maturity (350,000.00) 350,000.00 0.00 350,000.00 0.00 34 Item 9.1
Tuesday, September 15, 2026 121 of 234

TRANSACTION LEDGER
City of Campbell | Account #11214|04/01/2026 Through 06/30/2026| Transaction
Type
Settlement
Date CUSIP Quantity Security Description Price Acq/DispYield Amount Interest Pur/Sold Total Amount Gain/Loss Sale 05/08/2026 89115A3E0 (225,000.00)

TORONTO-DOMINION
BANK 4.861
01/31/2028
100.853 4.86% 226,919.25 2,977.36 229,896.61 1,919.25
Sale 05/12/2026 06368MJG0 (100,000.00) BANK OF MONTREAL

5.004 01/27/2029 100.851 5.01% 100,851.00 1,459.50 102,310.50 851.00 Sale 05/21/2026 06051GMK2 (150,000.00)

BANK OF AMERICA
CORP 4.979
01/24/2029
100.649 4.98% 150,973.50 2,427.26 153,400.76 973.50
Sale 05/21/2026 06051GLG2 (150,000.00)

BANK OF AMERICA
CORP 5.202
04/25/2029
101.137 4.69% 151,705.50 563.55 152,269.05 374.82
Sale 06/04/2026 91282CJC6 (375,000.00)

UNITED STATES
TREASURY 4.625
10/15/2026
100.316 3.90% 376,186.52 2,369.36 378,555.88 242.53
Sale 06/18/2026 91282CKE0 (350,000.00)

UNITED STATES
TREASURY 4.25
03/15/2027
100.277 3.86% 350,970.70 3,840.01 354,810.71 12.35
Total Sale (1,350,000.00) 1,357,606.47 13,637.04 1,371,243.51 4,373.45 TOTAL
DISPOSITIONS (1,700,000.00) 1,707,606.47 13,637.04 1,721,243.51 4,373.45 35 Item 9.1
Tuesday, September 15, 2026 122 of 234

IMPORTANT DISCLOSURES
2026 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.

Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.

Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.

Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.

Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “asis” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “as is” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.

This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.

Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.

Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.

Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest.

LGIP Yields: Reported yields for local government investment pools may be presented as either the 30-day yield or the monthly distribution yield, as applicable. For certain funds, the 30-day yield is calculated using reported daily yield data. Yield calculations are subject to change and may not be directly comparable across funds.

LAIF Yields: Additional Disclosure for CA Clients - As a result of a reporting lag from the Local Agency Investment Fund (LAIF), reported LAIF yieldsrepresent the most recently available Daily Effective Yield and may reflect data from approximately 7–10 days prior to month-end. 36 Item 9.1
Tuesday, September 15, 2026 123 of 234

BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr US Unsubordinated
Treasury & Agency Index
The ICE BofA 1-5 Year US Unsubordinated Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average
of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion for sovereigns and $250 million for agencies. 37 Item 9.1
Tuesday, September 15, 2026 124 of 234
City
Council
Report

DATE: September 15, 2026
TITLE: Proposed Modifications to Council Policy, Section 14, Theatre Use Policy (Resolution/Roll Call Vote)
RECOMMENDED ACTION: That the City Council adopt a resolution approving the proposed modifications to Council Policy, Section 14, Theatre Use Policy, effective September 16, 2026.

BACKGROUND
The City Council established policies to provide clear rules and consistent guidance.

Section Fourteen (14) of the Council Policies is the Theatre Use Policy, which was created to ensure the safe, appropriate use, and upkeep of the City’s Heritage Theatre upon its reopening in 2004. This policy outlines key areas, including the rental application process, rules of use, box office support, and associated fees. As the community grows and attracts a more diverse range of rental clients, it is important to periodically review and update the policy to clarify expectations, reflect technical upgrades, and address emerging needs. This policy was last updated in 2025, but the attached fee schedule is updated annually through the budget process.

DISCUSSION
The Theatre Use Policy has been an effective tool in managing the rental requests at the Heritage Theatre and was recently updated in late 2025. Over the last several months, staff identified several additional areas where the policy language could be clarified.

The redline version of the policy identifies changes made to the cancellation of ticketed events, removes language about consignment tickets, establishes limits for complimentary tickets, clarifies language for concession and merchandise sales procedures, and updates the administrative address for the Department of Alcohol Beverage Control (ABC) office.

Cancellation of Ticketed Events
For cancellations occurring more than 120 days before the event, the City currently retains a nominal $250 charge from the refundable deposit. Staff identified a need to further clarify the policy for ticketed events, as these cancellations can require additional administrative and operational work beyond the standard rental cancellation process. This may include communicating the cancellation to ticket purchasers, processing ticket refunds, coordinating with vendors, and addressing other costs incurred in preparation for the event.

Item 9.2
Tuesday, September 15, 2026 125 of 234
The proposed language clarifies that, for ticketed events, the City may retain or recover documented costs incurred prior to cancellation. These costs may include event setup and ticketing fees, administrative costs, documented staff labor, third-party vendor fees, and other direct expenses associated with preparing, administering, or canceling the event. This change is intended to ensure that the City is able to recover reasonable, documented costs resulting from the cancellation of a ticketed event.

Removal of Consignment Tickets
With the recent transition to a new software system, consignment tickets are no longer supported by the new system. Additionally, consignment ticket options were rarely used by rental clients and are also not consistent with the Theatre’s standard practice of maintaining centralized control over ticket sales.

Limits for Complimentary Tickets
The changes to this section establish a reasonable limit on complimentary tickets to ensure they are used for their intended purposes, such as artist needs, sponsor obligations, guest use, and event promotion, while protecting the integrity of the Theatre’s ticketing and revenue policies. The limit also provides a clear and consistent standard for all rental clients and prevents complimentary ticket allocations from being used to circumvent applicable ticketing fees or revenue-sharing requirements. This change is also consistent with the Theatre’s policy of maintaining centralized control over ticket sales and distribution.

Concession and Merchandise
Language was added to clearly indicate that rental clients are required to conduct an inventory count immediately prior to and immediately following events to ensure accurate reporting of merchandise sales for each event.

ABC Address Change
This change reflects the current physical address for the ABC.

Other minor changes were also made within the policy and are identified in the attached redline version.

The proposed modifications to Council Policy Section 14, Theatre Use Policy, aim to provide greater clarity and consistency in the administration of the Heritage Theatre rentals, address changes resulting from the Theatre’s updated ticketing system, and clarify expectations for rental clients.

FISCAL IMPACT
The changes proposed in this report will have no fiscal impact.

ALTERNATIVES
Item 9.2
Tuesday, September 15, 2026 126 of 234

1. Do not accept minor modifications to policy.

2. Provide alternative direction to staff.

PREPARED BY: Natasha Bissell, Recreation & Community Services Director Item 9.2
Tuesday, September 15, 2026 127 of 234
Report Approval Details
Document Title: Proposed Modifications to Council Policy, Section 14, Theatre Use Policy.docx
Attachments: Resolution_CC Policy 14_Theatre Use Policy.docx Theatre Use Policy_Redline.docx
Theatre Use Policy_Clean.docx
Final Approval
Date:

September 09, 2026
This document and all of its attachments were approved and signed as outlined below:

Natasha Bissell , Recreation & Community Services Director Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
Item 9.2
Tuesday, September 15, 2026 128 of 234
RESOLUTION NO.___________________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL APPROVING MODIFICATIONS TO COUNCIL POLICY SECTION 14: THEATRE USE POLICY WHEREAS, the City Council established Council Policy Section 14: Theatre Use Policy to ensure the safe, appropriate use and upkeep of the City’s Heritage Theatre; and WHEREAS, the Theatre Use Policy establishes guidelines and requirements related to the rental application process, rules of use, box office support, ticketing, concessions, and associated fees and procedures; and
WHEREAS, as the Theatre Use Policy was most recently updated in 2025; and WHEREAS, following implementation of an updated ticketing software system and continued administration of Heritage Theatre rentals, staff identified several areas of the Theatre Use Policy where additional clarification and modifications would improve consistency and administrative efficiency; and
WHEREAS, the proposed modifications clarify provisions related to the cancellation of ticketed events, remove provisions concerning consignment tickets that are no longer supported by the Theatre’s ticketing system, establish limits for complimentary tickets, clarify concession and merchandise sales procedures, and update the administrative address for the Department of Alcoholic Beverage Control; and WHEREAS, the proposed modifications are intended to provide greater clarity and consistency in the administration of Heritage Theatre rentals and to reflect current operational practices and technical capabilities.

NOW, THEREFORE BE IT RESOLVED, that the City Council of Campbell approves the revisions to Council Policy Section 14: Theatre Use Policy.

PASSED AND ADOPTED this ___ day of September, 2026 by the following roll call vote:

AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
APPROVED:
__________________________
Daniel E. Furtado, Mayor
ATTEST:
_______________________
Andrea Sanders, City Clerk
Item 9.2
Tuesday, September 15, 2026 129 of 234
- 1 –
City of Campbell
Recreation & Community Services Department

THEATRE PROGRAM

THEATRE USE POLICY
Heritage Theatre
at the Campbell Community Center
1 West Campbell Avenue
Campbell, CA 95008
(408) 866-2700
E-Mail: [email protected]
www.heritagetheatre.org
Approved by Council September 15, 2026
Effective September 16, 2026
Item 9.2
Tuesday, September 15, 2026 130 of 234
- 2 -
Theatre Use Policy

TABLE OF CONTENTS
Section Page Number
A. Applications 3
B. Payment of Fees 4
C. Cancellations 4
D. Insurance Requirements 5
E. Volunteers/Security/Professional Event Staff 6
F. Box Office Management 6
G. Support of Non-Profit Organizations 7
H. Discretionary Booking 7
I. Rental Uses of Garden Courtyard 7
J. Photography 7
K. Decorations 8
L. Concessions and Merchandise 8
M. Technical Labor 9
N. Promotions 11
O. General Rules and Regulations 11
P. Policy on Smoke/Fog Machines 13
Exhibit A: Disabled Seating Procedure & Seating Chart
Exhibit B: Directions to the Heritage Theatre
Exhibit C: Campbell Community Center Map
Exhibit D: Schedule of Fees and Charges
Campbell Heritage Theatre
1 W. Campbell Avenue, #C32
Campbell, CA 95008-1039
(408) 866-2700
Fax: (408) 866-2730
www.heritagetheatre.org
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THEATRE USE POLICY
The purpose of the Theatre Use Policy is to assure that the facility is utilized for recreational, cultural, educational, social and community service functions that meet the needs and interests of the community, as well as to set clear policies, procedures, regulations and rental fees regarding such uses.

Heritage Theatre
Maximum capacity: 802
A. Applications

1. Application must be made minimum of forty-five (45) days prior to the desired date of use. The Facility Use Application/Technical Rider must be completed and can be mailed, emailed, faxed or delivered in person. A non-refundable application fee of $45 dollar is due upon submitting a theatre application in order to receive a theatre estimate. This fee will be applied towards the total theatre rental fees in the settlement provided after the event. An estimate will be provided by the Theatre Manager and must be approved before the appropriate deposit(s) can be accepted.

Once the rental is confirmed, a Permit will be issued.
a. Any modifications made to the Permit must be made in writing.

Modifications can be made up to two weeks prior to first scheduled event date with an applicable processing fee for permit changes. Event information that alters the permit or permit add-on provided after the permit documents are signed by rental client and before 30 days prior to the start of the rental will be charged $30 per requested change. Event information that alters the permit or permit add-on provided less than 30 days out from an event will be charged $50 per requested change.

2. Applicants must be at least 18 years of age or older and authorized to enter into an agreement, and an approved representative must be present throughout the entire use of the facility.

3. The Permit provided to the Rental Client will include:
a. Estimate of base rent fees and all equipment, service and staffing costs.

Payment of the estimate is due 30 days in advance of the first use date if the event is private or free to the public. If admissions are sold, no payment other than the deposit is required in advance unless ticket sales do not cover the cost of the estimate (see section “b” below). Clients are to realize that estimates are provided based on their application and the Theatre Manager’s best estimate of use. Final charges will be assessed for actual facility and equipment use, as well as actual service and staffing fees provided and will be outlined in the final Settlement Report and result in a zero balance, additional fees due, or partial refund due to the client.

Settlements will be performed within two weeks following last scheduled rental date.

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b. All Rental Clients selling admissions to their event are required to use the Heritage Theatre Box Office for ticket sales and printing. If ticket sales do not cover the cost of the estimate within one monthof the first scheduled event date, Rental Client is required to pay the estimate. The only acceptable forms of payment at that time will be VISA, MasterCard, Discover, American Express, cash, certified money order or cashier’s check.

See Section F, page 5 for details on Box Office Management.

4. Theatre Manager will complete a detailed estimate based on the completed Facility Use Application. If Rental Client is comfortable with the estimate, the deposit will be accepted. A refundable security/damage deposit of $500.00-$5,000.00/date is required and confirms your date. The deposit may be refunded post event if there are no additional fees due, or applied to (deducted from) the total balance due. In addition to fees for facility or equipment use, services, or staffing, the security/damage deposit may also be partially or fully withheld to apply to any charges for damaged or lost equipment, repairs to the facility, extra maintenance (i.e., carpet cleaning), failure to complete pre and post event walkthroughs or failure to vacate the premises at the end time on the Permit.

5. Rentals are not confirmed until applicant receives and signs a Permit. Absolutely no publicity or invitations shall be distributed until the applicant receives this official confirmation.

6. No overnight uses will be allowed. The time reserved must be inclusive of whatever time is needed for set-up, actual event time, and clean up at the conclusion of use.

7. Appointments to view the facility must be scheduled in advance with the Theatre Manager.

8. Theatre Scheduling: Due to the high financial impact of promoting routing dates priority will always be given to scheduling in-house productions. Rental dates by outside organizations may be booked up to twelve (12) months in advance of the event. If a scheduled date must be moved to accommodate an in-house production, every effort will be made to find an acceptable alternate date. In addition, preference for available dates will be given to those presenting successful annual events where a specific date is critical to the success of the event. High priority will be given to those signing multiple (4+) event contracts per year with the Heritage Theatre.

B. Payment of Fees: Any fees paid less than thirty (30) days in advance of the first use date must be paid by cash, cashier’s check, guaranteed money order, or an accepted charge card (Visa, MasterCard, Discover or American Express) in the name of the hosting/producing organization/person. For Theatre Use Fees and associated Staff and Equipment Use Fees, please see Exhibit D, Schedule of Fees and Charges for Use of the Heritage Theatre.

C. Cancellations: Notice of the desire to cancel a booking/reservation must be received, in writing, by the Rental Client whose name appears on the contract. If written notice of cancellation is received 120 days in advance of the first scheduled date of use, the deposit will be refunded, less a $250.00 processing fee and accrued rental fees to date.

Cancellations received less than 120 days in advance of the first use date shall be subject Item 9.2
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to loss of entire deposit. The City of Campbell reserves the right to cancel any use in emergency situations or when deemed necessary for the safety and best interests of the customers, the City of Campbell, or all concerned. In such cases, a refund of all fees and deposits paid will be provided. The City of Campbell will not be liable for any other expenses incurred by Rental Client in relationship to this booking, including but not limited to lost profit or income, expenses incurred, and incidental, special or consequential damages of any kind.

1. Force Majeure: If the Heritage Theatre is unfit for occupancy by Rental Client during the period covered by agreement, by reason of fire, earthquake, strike, civil disturbance or any other cause beyond the control of the City of Campbell, then the agreement shall be of no further force and effect.

For ticketed events, the City reserves the right to retain or recover costs incurred prior to cancellation, including but not limited to event setup and ticketing fees, administrative costs, documented staff labor, third-party vendor fees, and other direct expenses associated with preparing, administering, or canceling the event.

D. Insurance Requirements

1. The Rental Client shall be responsible for any and all damage to the Heritage Theatre and its’ premises, equipment and property during their occupation of the facility.

2. The Rental Client will be held responsible for all actions, behavior, and damages caused by his/her guests/attendees during occupancy of the facility.

3. All Rental Clients will be required to provide the City of Campbell with an original Certificate of Insurance providing proof of the following coverage:
a. General liability and property damage insurance in an amount not less than $1,000,000 per occurrence.
b. Additional insureds to be listed as:

1. The City of Campbell: 70 N. First Street, Campbell, CA 95008

2. VenueTech Management Group: 1821 S. Bascom Avenue, #270, Campbell, CA 95008
c. The insurance may not be cancelled or reduced without 30 days prior written notice to all named additional insureds.

4. Rental Clients requesting permission to sell alcoholic beverages must provide host liquor liability insurance in an amount not less than $1,000,000 per occurrence, in addition to the insurance outlined above, and evidence of any necessary license to sell alcoholic beverages. See Section 0, page 10 for more details on Concessions & Merchandise.

5. The City of Campbell and VenueTech Management Group are not responsible for accidents, injury, illness or loss of group or individual property.

6. Rental Client shall defend, release, indemnify and hold the City of Campbell and VenueTech Management Group, their officers, agents, employees and volunteers, harmless from and against any loss, liability, costs (including reasonably incurred attorney fees) claim or damages that may arise or result from, or be related to or be alleged to arise or resulted from activities of Rental Client, its officers, agents, employees and volunteers, and shall, at its own costs, expense and risk, defend any and all legal proceedings that may be brought against the City of Campbell and Item 9.2
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VenueTech Management Group, their officers, agents, employees and volunteers, on any claim, demand, or alleged liability, and shall satisfy any settlement or judgment that may be rendered against any of them arising from, or related to activities of Rental Client, and shall assume liability for any and all direct expense incurred in providing services pursuant to this policy, except for any claim, loss, liability, damage or cost directly arising out of the sole negligence or willful misconduct of the City or VenueTech Management Group.

7. A copy of detailed insurance specifications is available from the Theatre Manager.

E. Volunteers/Security/Professional Event Staff: Heritage Theatre volunteers are given priority to work all events. A minimum of 8 Heritage Theatre volunteers is required per event. If Theatre cannot secure these volunteers, event staff may be required at the expense of the Rental Client and the discretion of the Theatre Management and the City of Campbell.

1. Heritage Theatre volunteers will no longer be responsible for enforcing your no photo/recording requests. They will continue to be responsible for ticket taking, ushering, accident/incident reporting and emergency evacuations. It has become too difficult to control this with the abundance of smart phones and our volunteers' efforts are best focused on their other responsibilities listed above. We have a sign that will be displayed in the lobby and it will continue to be announced in the mandatory pre-recorded show announcement. We have found when our rental clients do their own pre-show announcement addressing photo/recording regulations for your show(s), it is effective, so please let the Production Manager know if you would like to have a mic set up for this. We also encourage you to provide volunteers or staff from your organization to enforce your requests, or we can hire private security staff from the company we contract out with to specifically handle this at your show(s). The additional expense of private security is $45.00/hour/person with a six-hour minimum. Please let the Theatre Manager know if you would like private security to handle this at least 2 weeks prior to your show(s), and how you want the paid staff to handle violations (ex: warning only, escort out, etc.)
F. Box Office Management

1. The Heritage Theatre reserves the right to manage all Box Office operations, including ticket printing and the collection of admission fees. Rental Clients of the Heritage Theatre will pay for Box Office services as well as ticket printing as per the attached Schedule of Fees and Charges.

2. Once the Ticket Information Sheet is submitted, the show build will begin based on the information provided. Additional information or changes to already provided information will result in a Revised Build Fee, charged at $50-$100/per change.

3. A Rush Build Fee will be charged for on-sales that require completion in less than the permitted 7 business days to be charged at $100.00 per build.

4. Presales are allowed online only. At the time of a general onsale, tickets will be offered online, through the Box Office and over the phone simultaneously.

5. The Box Office will not provide exchanges or refunds on tickets sold unless instructed in advance by the Rental Client. The Box Office will not replace lost tickets.

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6. Rental Client may not reproduce Theatre tickets. The Box Office provides assigned seating with each ticket unless otherwise specified. The Box Office closes thirty (30) minutes after a show begins and no tickets will be sold from that point on. Latecomers will be seated at the first appropriate break in the performance. No one is allowed in the Box Office except authorized Heritage Theatre personnel.

7. The Rental Client may choose to offer a discount on ticket prices for groups, seniors, or children if so desired. This discount information must be provided to the Box Office in writing at least two weeks in advance of ticket sales. Use of third party discounted sites (Groupon, Goldstar, etc.) must be approved by Theatre Manager and additional rental fees apply.

8. Complimentary tickets for any performance may be printed by the Theatre Box Office at the request of the Rental Client. Requests for more than twenty five (25) complimentary tickets are not permitted.All fees from ticketing software associated with complimentary tickets will be charged to the rental client.

9. No admission charged: If an event is free or private, Theatre staff will count the number of patrons entering the Theatre, including infants. When the maximum allowable occupancy has been admitted, the doors will be closed and no one else will be permitted entry. If Rental Client has family, friends or other people who have arrived with the cast and crew and entered the facility through the backstage, but will require a seat in the audience, they must report to the Theatre Manager or designee to be counted.

G. Support of Non-Profit Organizations: A discounted rate schedule for non-profit organizations is not available.

H. Discretionary Booking: At the discretion of the Recreation and Community Services Director, requests for rental of the Theatre may be denied if the proposed event presents a potential conflict to the target market of a previously scheduled event. Criteria include the market saturation of a particular event type, long-term relationship of an existing Theatre client, and/or the financial impact on the Theatre. Additionally, the Recreation and Community Services Director shall regulate or prohibit such activity or use, which in his/her judgment is determined to be of a hazardous nature, is potentially dangerous or damaging to property, or is not in the best interests of the citizens of the City of Campbell.

I. Rental Uses of the Garden Courtyard: The Garden Courtyard, located immediately east of the Theatre, may be separately rented to individuals, businesses, and organizations, based on availability that does not conflict with scheduled Theatre events. The Garden Courtyard may be rented in conjunction with a Theatre rental for pre event or intermission activities only and not for post event activities. Rental of the Garden Courtyard does not include use of tables, chairs, canopies, podiums, or any other equipment. Separate rental fees for this area are included in the attached Schedule of Fees and Charges.

J. Rental Uses of the Theatre Plaza: The Theatre Plaza, located immediately in front of the Theatre, may be separately rented to individuals, businesses, and organizations, based on availability that does not conflict with scheduled Theatre events. The Theatre Plaza may be rented in conjunction with a Theatre rental for pre event or intermission activities only and not for post event activities. Rental of the Theatre Plaza does not include use of tables, chairs, canopies, podiums, or any other equipment. Separate rental fees for this area are Item 9.2
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included in the attached Schedule of Fees and Charges. Theatre Plaza use may require additional theatre staff oversight.

K. Tents/Canopies: All tents/canopies used on the exterior of the Theatre must be in conjunction with a Theatre rental permit. The use of tents/canopies must be requested in advance by the permit holder and approved in advance by both the Theatre Manager and the Production Manager. The use of tents/canopies must comply with the California Fire Code. Permitted tents include enclosed tents up to 400 square feet and open-sided tents up to 700 square feet. All tent materials must be flame-resistant and properly labeled.

Tents must be securely anchored, structurally stable, and placed at least 20 feet away from buildings, other tents, vehicles, and lot lines, unless otherwise exempted by code.

Cooking or heating inside tents is not permitted. All setups must maintain clear exits, comply with accessibility standards, and must not obstruct public walkways. Local fire department regulations may still apply and must be followed.

L. Photography: The Theatre and/or Garden Courtyard may be reserved for the purpose of photography, subject to availability and fees outlined in the attached Schedule of Fees and Charges.

M. Interior Decorations: Any decorating, covering of, or changes to the facility shall be discussed at the time of application. The Rental Client shall be responsible for putting up any decorations and all other special preparations necessary for their function. Set up/decorating inside and outside of the Theatre may only occur during the rental time on the Permit. All decorations shall be removed at the conclusion of the function. Rental Client shall be responsible for the removal of all decorations, attachment material, special preparations, Rental Client’s personal property, and any rented equipment before the Rental Client vacates the premises. The Garden Courtyard and the Loading Dock Driveway must be vacated by the end of the rental. Method of installation of all decorations must have prior approval of the Theatre Manager.

1. All decorations must be flameproof or fire retardant.

2. The use of cellophane, all tapes, nails, staples, screws, etc., is NOT allowed on walls, ceilings, Theatre seating, furniture, or floors. Insufficient removal of any items will result in additional clean-up charges to be withheld from deposit. If Rental Client is granted permission to use tape, it must be painter’s tape.

3. Decorations may NOT be hung from light fixtures, ceiling, heat detector, emergency lights, or acoustical wall/ceiling tiles.

4. Decorations are not allowed in or around the reflecting pools in the front plaza

5. Open flames (such as lighted candles) are NOT allowed.

6. All plants, trees, and shrubs must be in waterproof containers and must be carefully placed so as not to damage floor, tables, or block fire exits.

7. No foreign substance may be applied to the floor.

8. No water features or decorations that are water-related/water based are allowed.

9. No rice, birdseed, confetti, hay bales, sand, etc., are permitted at the Heritage Theatre or on surrounding sidewalks and parking lots. Use will cause forfeiture of entire damage deposit.

10.For safety reasons, relocation or rearrangement of Heritage Theatre equipment is not permitted. Staff on duty must perform any rearrangement of furnishings and/or Item 9.2
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equipment. All doors, aisles and hallways must be kept clear in the event of an emergency evacuation.

11.For customer comfort, energy efficiency, and consideration of our neighbors, all doors and windows must remain closed throughout the entire event.

N. Exterior Decorations: All exterior decor must be approved in advance by both the Theatre Manager and the Production Manager. If approved, decor may be placed at the front of the theatre, in the Theatre Plaza, the Garden Courtyard, the grassy area west of the Box Office, and along the paths adjacent to—but not blocking—the walkway between the Community Center parking lot and the Theatre Plaza. All decor and signage must comply with California fire code and must not obstruct access to any public walkways.

Signage may not be staked into the ground. No decor may be placed in or around the reflecting pools. Use of the Theatre Plaza may require additional oversight from theatre staff. Associated fees are outlined in the attached Schedule of Fees and Charges. Exterior decor may also require additional theatre staff oversight. All rules and regulations for interior decor also apply to exterior decor.

O. Concessions and Merchandise

1. The City of Campbell retains the right to all concessions within the Heritage Theatre and its environs. If Rental Client is granted permission to sell concessions or merchandise, the City of Campbell shall receive 25% of gross sales. The Rental Client or its designated representative must complete and sign a merchandise/concessions inventory and sales reconciliation (count-in/count-out) with Theatre staff immediately prior to the event and immediately following the event.

2. Concessions/refreshments/snacks in the lobby are limited to dry pre-packaged items only such as chips, candy, cookies. The Garden Courtyard must be rented for all other foods that are served or sold.

3. Alcoholic Beverages: The use and/or sale of alcoholic beverages is allowed by prior written permit application only and must be requested at the time of application. a. Alcoholic beverages to be consumed on the premises shall be limited to beer, wine and champagne. Absolutely no hard liquor is allowed. b. If the presence of alcohol is deemed to conflict with other previously scheduled uses/users, the request may be denied.
c. Alcohol is NOT allowed at youth-oriented events or events held in honor of a minor.
d. A group or organization wishing to sell alcoholic beverages at their function or provide alcoholic beverages with the cost of admission, must first obtain approval from the Theatre Manager, and then the Police Chief; and upon approval will be required to obtain, at their own expense, the appropriate permits and licenses from the State Alcoholic Beverage Control Board (24 hour liquor license). Liquor liability insurance is also required from the sponsoring organization. Liquor licenses may be obtained at the: Alcoholic Beverage Commission, Santa Clara County District Office, 224 Airport Parkway, Suite 620
San Jose, CA 95110 . Telephone: (408) 346-2417 Evidence of this license Item 9.2
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must be on file in the Heritage Theatre office at least ten (10) days prior to the event/function.
e. Rental Clients sponsoring events where alcohol is sold will be required to obtain liquor liability insurance per the coverage outlined in sections D3 and D4.
f. Rental Clients sponsoring/hosting events where alcoholic beverages are served or sold will be required to have security, at the Rental Client’s cost and expense. Theatre Manager will determine the security needs for the event.

4. Rental Clients are permitted to sell non-food items, subject to the following restrictions
a. Advance notice must be given to the Theatre Manager 30 days prior to event and sale of items.
b. All items for sale must be approved by the Theatre Manager in advance c. All items for sale must be related to the event. The Heritage Theatre will not be used for merchandising or retail sales of items unrelated to an event or performance.
d. The City of Campbell shall receive 25% of gross sales if the Rental Client sells and 30% if the House sells.
e. The City of Campbell reserves the right to restrict or not permit the sale of any items at the sole discretion of the Theatre Manager.

5. Receptions involving the serving of food and drink prior to or during events require approval from the Theatre Manager and must be arranged in advance. Additional cleaning and damage deposits may be required.

P. Technical Labor

1. Labor: To ensure the protection of all in-house equipment and the professional presentation of events, the Heritage Theatre will require all Rental Clients to utilize the House technical staff for their events, at the rates outlined on the attached Schedule of Fees and Charges. The Theatre Manager shall have the discretion to schedule staff deemed necessary to provide for a quality production, at the expense of the client.

2. Lighting and sound equipment in the Heritage Theatre will be operated by approved Technicians. If a Rental Client wishes to use their own members as additional technicians, each of these persons must demonstrate, to the Manager and/or Technical Director, their capabilities to perform before they may be employed. They must also be certified by the Theatre Manager and Technical Director and provide proof of Workers Compensation Insurance.

3. The Theatre is equipped with a video projector, screen and associated accessories.

This equipment is only to be operated by a Theatre technician. The projector is a 12,000 lumens Epson projector with a semi-long lens. The projector is permanently mounted on the front light rail of the balcony. A DVD and Blu-Ray player is available, or Rental Clients may bring in a laptop computer to be used with the Theatre projection system. A 10½’ x 14’ screen is also available for use. The rental rate for the projector is outlined in Exhibit D. Projector specs are in the full tech packet.

4. The Heritage Theatre will not be used for long-term storage of sets, props or costumes. Run-of-event storage will be provided as available and by arrangement Item 9.2
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with the Theatre Manager or Technical Director. Materials left in the Heritage Theatre after strike of event will become property of the City of Campbell unless previous arrangements have been made with the Theatre Manager or Technical Director. The City of Campbell assumes no responsibility for stored or abandoned property or materials at any time. The Rental Client will be responsible for any costs the City of Campbell incurs related to removal and/or disposal of abandoned property or materials. The deposit could be forfeited if property or materials are abandoned.

5. Each Rental Client must provide a Production Stage Manager for their event. If they are not able to provide such a person who is, in the Theatre Manager’s opinion, qualified to fill this position, one will be provided at the Rental Client’s cost at the rates set forth in the attached Schedule of Fees and Charges.

6. The Rental Client must coordinate the needs of all aspects of their event with the Theatre Manager and Theatre Production Manager. Rental Client is required to schedule a 1-hour maximum production meeting with the Theatre Production Manager within 2 – 4 weeks prior to their first event date.

7. No changes or modifications to the fixed equipment or facilities may be made, nor may any equipment be removed from the Theatre or altered. Any structural or electrical changes may be made only by Theatre staff with the Theatre Manager’s and/or Building Maintenance Supervisor’s approval and only by qualified staff or licensed contractors. All labor needed to make such changes and reverse them will be charged to the Rental Client at the set Tech rate or, in the case of an outside contractor, cost plus 15%.

8. No event taking place in the Heritage Theatre may be recorded, televised, broadcasted or otherwise recorded for commercial reproduction or use in any manner without the express written consent of the City of Campbell. The Client must hold the City of Campbell and VenueTech Management Group harmless from such activity and must also meet all insurance requirements prior to the event.

9. All scenic units, props, and electrical equipment provided by the Client is subject to a safety inspection by the Technical Director or his/her designee. The City of Campbell reserves the right to prohibit the use of any scenery, property or equipment that is deemed by the City to be unsafe. Equipment judged to be unsafe must be brought up to minimum standards before being used, or must be removed from the premises.

10.Specialized needs for sound or lighting must be arranged at least two weeks in advance with the Theatre Manager or Technical Director.

11.The Rental Client will not obstruct or restrict the use of any doors, exits, hallways or aisles in the Heritage Theatre. No tripods, cable, or equipment of any kind will be allowed in the audience seating area without the prior approval of the Theatre Manager. The approved location for additional production equipment is located in the rear orchestra section on house right “Overflow production and seating area”.

If the overflow production and seating area is used for production or equipment, patrons will not be allowed to be seated in this section. Under no circumstances may the view of the audience be obstructed.

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Q. Promotions

1. No signage, posters, flyers or advertisements for any event may be posted in or on the Heritage Theatre or the Campbell Community Center at any time.

Advertisements, posters, flyers and marketing material for off-site use related to the event must be approved by the Theatre Manager. If prior approval and permission is granted, Client is responsible for putting up and taking down all promotional material. Everything must be removed at the conclusion of the event. Rental Client will be billed at a rate of $45.00/hour for labor involved in removing any promotional material that is left after event.

2. Promotion of event is the sole responsibility of the Rental Client.

3. A marquee will be provided for the public notice of events at the Heritage Theatre for a weekly fee of $33.00. Additional changes/modifications to the original marquee message will be billed at $15 each. The marquee will be under control of the City of Campbell, and notices for events will be posted at the City of Campbell’s discretion.

R. General Rules and Regulations

1. Weapons (including knives or swords) firearms, explosives, open flames or lasers are not permitted in the Heritage Theatre.

2. At no time will any illegal activity, performances, or exhibition be allowed in the Heritage Theatre.

3. Helium balloons are not allowed in the auditorium.

4. Gambling on the premises is prohibited. Gambling shall be defined as any game of skill, chance or raffle, played with cards or any other device for money or any other representative item of value.

5. If you are having equipment delivered or picked up at times other than your scheduled use, arrangements need to be made in advance with the Production Manager. You will be billed for the time involved with the delivery/pick-up. Delivery vehicles should enter at the Campbell Avenue entrance and back up to the loading dock.

6. Drop-offs: please have buses and cars drop-off and load passengers in the indented Loading Area directly in front of the Theatre on Campbell Avenue.

7. During rehearsals: only the first four rows in the auditorium may be used- the remainder of the house, balcony and lobby are closed. Backstage restrooms are to be used. The only exception to this policy is if the Rental Client has agreed in advance to pay for a scheduled House Manager.

8. Please remember: no feet on chairs, no scratching of seat backs, do not sit on tables, report any damage to the facility or equipment to the Production or House Manager, no running or yelling inside the Theatre, and no food or beverages in the auditorium (bottled water is the only exception).

9. Everyone must access and egress the stage from designated stairs.

10.Facility permits and reservations cannot be transferred, assigned or sublet.

11.All Volunteers and performers are required to enter through the Backstage Door near the loading dock (see attached map) for both rehearsal and performance dates. Volunteers must be clearly identified with a badge provided by Rental Client.

12. All sound checks on performance days must be completed 90 minutes before showtime- no exceptions.

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13. With the exception of service animals necessary to assist a person with a bona fide disability, animals will only be permitted in the Theatre when authorized, in advance, by the Manager.
a. Service animals are not pets, they are working animals individually trained to do work or perform a task for the benefit of a person with a disability (including physical, sensory, psychiatric, intellectual or other mental disability). Service animals are dogs (any breed) or mini horses. b. Service animals will be removed or excluded if they are not under control and/or housebroken and cannot compromise safe facility operation. c. Service animals may accompany its handler in all areas of the facility where the public is allowed to go.
d. Service animals are not emotional support or companion animals.

14. Smoking and vaping is not allowed in the Heritage Theatre or anywhere outside of the Heritage Theatre. The entire Campbell Community Center is a smoke and vapefree environment. No food or drink with the exception of bottled water and beverages in approved Theatre Concert Cups will be allowed in the audience seating area at any time.

15. The breezeways leading out to the Garden Courtyard must remain clear at all times.

There is no set up allowed in this area.

16. Improper dumping including, but not limited to, food, chemicals, beverages and ice is not allowed inside the Theatre or surrounding areas. All items must be properly disposed of in the Theatre dumpster on the loading dock.

17. Strollers are not permitted in the Theatre auditorium or lobby. All patrons will be asked to take strollers back to their cars.

18. The Client shall be responsible for the orderly conduct of all persons using the Heritage Theatre during their event. The City of Campbell reserves the right to remove, or have removed, any person behaving in an unlawful, disrespectful, or objectionable manner.

19. Fights, vandalism, or destructive behavior on the part of any member of a Rental Client’s group or its audience will be grounds for immediate cancellation of the event and all future events. In this case, all fees will be forfeited.

20.The Heritage Theatre will be provided to Rental Client in a clean and ready state.

Rental Client is responsible for leaving the Heritage Theatre in the same state they found it. Any cleaning that must be done beyond ordinary wear and tear will be charged to the Rental Client at the Maintenance rate outlined in the Schedule of Fees and Charges.

21. Under no circumstances will a larger number of persons be allowed in the audience seating area than the total number of seats.

22. Lost and Found: The Heritage Theatre, City of Campbell, VenueTech Management Group, and volunteer staff will not be responsible for lost-and-found items, but will hold found items for a maximum of 30 days. All items of substantial value will be turned over to the City of Campbell Police Department. Inquiries for lost items should be directed to the Theatre Manager at (408) 866-2797.

23. The maximum capacity in the backstage area is 40 persons between Dressing Rooms A, B & C. All costume changes, hair & makeup need to be contained in a dressing room. Due to privacy concerns and safety issues, pipe and drape will no Item 9.2
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longer be set up for dressing room space. The Theatre staff will set up pipe and drape for a single 5’x5’ quick change booth if needed.

24.There is a designated “free speech area” for all Theatre events. Theatre Manager or Production Manager can provide the information/location as needed.

25. The City of Campbell reserves the right to amend these policies and/or fees and charges as deemed necessary without advance notice. Previously approved reservations will not be affected by new rates.

S. Policy on Smoke/Fog Machines & Other Pyrotechnical Devices Only 1 DF-50 Hazer is allowed to be used/operated in the Heritage Theatre.

Tests performed with other models, and observed by the County Fire Marshal, resulted in the activation of the building’s fire alarm system. This is not an acceptable result, and policy strictly prohibits shutting the fire system off during such a use. The Theatre hazer may be rented, or the same model of hazer (DF-50) can be rented through a third party vendor. Only one DF-50 hazer is allowed.

Dry ice may be allowed if it does not make the stage too wet and slippery, creating a safety hazard for the performers. Not all pyrotechnic devices are ruled out. Other pyrotechnic devices that result in a small “bang”, “pop”, or short “flame” may be allowed, but must first be tested and approved by the County Fire Marshal on a case-by-case basis.

Requests for appointments must be made in advance with the Theatre Manager by calling: 408.866.2797. The Theatre Manager will then schedule an appointment meet with the Santa Clara County Fire Department. Any charges assessed by the Fire Department for this appointment will be the responsibility of the Client.

T. The Fees & Charges associated with rental uses of the Heritage Theatre (outlined in the following section) were revised and approved by Campbell City Council in June 2025.

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Campbell Heritage Theatre

EXHIBIT A

BOX OFFICE PROCEDURE

FOR RELEASE OF WHEELCHAIR, TRANSFER & COMPANION SEATS

FOR TICKETED EVENTS WITH RESERVED SEATING
The Heritage Theatre is committed to serving persons with disabilities. The Theatre contains orchestra and balcony level seating to accommodate persons in wheelchairs and their companion(s). The Theatre is designed to accommodate the required (ADA) number of wheelchair (8) and adjacent companion seats. Wheelchair and companion seating is available in the following locations:
• Balcony
o House left: 1 wheelchair and 2 companions
o House right: 1 wheelchair and 2 companions
• Orchestra
o House left, rear: 2 wheelchairs and 3 companions
o House left, front: 2 wheelchairs and 3 companions
o House right, front: 2 wheelchairs and 3 companions
Transfer seats are also available in addition to the sections mentioned above. The arm rests on transfer seats swing open and the patron may transfer from a wheelchair into a permanent Theatre seat. The transfer seats are designated in the following locations:
• Balcony
o Row FF, aisle seats 101 & 113
• Orchestra
o Row B, aisle seats 101 & 115
o Row Q, aisle seats 101 & 115
o Row T, aisle seats 1 & 2
The rear house right section is an overflow section for additional sound or videotaping equipment.

If this area is not used for these purposes, up to nine portable seats can be placed in this area and sold for overflow seating.

Wheelchair and companion seating purchases are available on-line; they may also be purchased through the Box Office, either in-person or by telephone (408-866-2700) during Box Office hours.

At the time tickets go on sale for a show, the Theatre guarantees that 1 companion seat can be sold with each wheelchair seat. Ticket requests for more than 1 companion should be reviewed with the Box Office Manager or Theatre Manager. All efforts will be made to seat companions adjacent to or as near as possible to the disabled party, as space allows. All seats designated for Item 9.2
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disabled patrons (including transfer seats) with an adjacent companion seat will be placed on hold for persons with disabilities until such time as is described below.

Should the remainder of the house sell out (with the exception of trouble and artist seats), wheelchair accessible, transfer and companion seats will be released in the following manner:
• Three days (72 hours) after all non-accessible seating is sold out in the entire auditorium, one-half of all unsold designated wheelchair accessible, transfer and companion seating will be released for sale to the general public.
• The day of the show, all remaining wheelchair accessible, transfer and companion seats will be released for sale to the general public, except for 1 wheelchair accessible and companion seat, which will be held until showtime.

Box Office staff are trained to ask patrons with disabilities to specify if they would like to purchase a transfer seat or if they would like to be seated in one of the wheelchair sections. In most cases companion seats will be comfortable padded portable seating. The only fixed companion seats are located in the front row of the Orchestra section. All handicap seating will be sold on a firstcome, first-served basis. As with all seats, disabled patrons who prefer a certain seat or section are encouraged to purchase their tickets early for best availability.

This procedure will apply to all in-house productions and rental client events with ticketed admission with reserved seating.

Campbell Heritage Theatre

BOX OFFICE PROCEDURE FOR WHEELCHAIR, TRANSFER &

COMPANION SEATS FOR GENERAL ADMISSION TICKETED EVENTS

WITH AND NON-TICKETED EVENTS
For General Admission events and events free to the public (non-ticketed events), the seats mentioned above will be reserved for persons with disabilities. The designated locations for wheelchair, transfer and companion seating are marked with the universal handicap sign and the actual seats will be marked as well. At all times, a minimum of 8 wheelchair and 8 companion seats must be reserved for persons with disabilities, with at least 1 wheelchair and 1 companion seat available in each section (front orchestra, rear orchestra and balcony). Able-bodied patrons sitting in these sections/seats will be asked to move by the House Manager if the minimum number of seats are not available for persons with disabilities. Patrons refusing to relocate will be asked to leave or be escorted out. There are no exceptions.

The approved location for additional production equipment or seating is located in the rear orchestra section on house right “Overflow Production and Seating Area”. If this area is used for production or equipment, patrons will not be allowed to be seated in this section. If no additional equipment is used, up to 9 portable seats or 2 wheelchair & 3 companion seats may be used in this section. Under no circumstances may the view of the audience be obstructed.

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EXHIBIT A
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EXHIBIT B
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EXHIBIT C
Theatre loading dock
driveway/semi/bus parking
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EXHIBIT D
Schedule of Fees and Charges

1. The Theatre will be rented to individuals, businesses, and organizations based on the following rate schedule and in addition to the fees in #5 below:
2026/27
Theatre Rates for Non-Peak Days (Monday – Wednesday):

Base rent for up to an 8-hour period on one day: $550.00/day Additional time on the same event day: $125.00/hour
Rehearsal time for up to an 8-hour period on one day: $375.00/day Additional rehearsal time on the same day: $125.00/ hour Standard sound equipment (up to two microphones) N/C*
*Sound Tech hourly rates are applied for microphone usage Full sound equipment (full use of sound system) $125.00/day Minimum lighting equipment $125.00/day
Maximum lighting equipment (No Moving Lights) $400.00/day Maximum lighting equipment (No Moving Lights)-same contract $700.00/2 days $900.00/3 days
$1,750.00/7 days
$1,750.00 +$225.00/day+7 days
Maximum lighting equipment (With Moving Lights) $925.00/day Maximum lighting equipment (With Moving Lights)-same contract $1,200/2 days $1,500/3 days
$1,900/7 days
$1,900 + $300/day + 7 days
*Lighting does not include spotlights. See below for charges Theatre Rates for Peak Days (Thursday – Sunday):

Base rent for up to an 8-hour period on one day: $800.00/day Additional time on the same event day: $125.00/hour
Rehearsal time for up to an 8-hour period on one day: $500.00/day Additional rehearsal time on the same day: $125.00/hour Standard sound equipment (up to two microphones) N/C
Full sound equipment (full use of sound system) $200.00/day Minimum lighting equipment $175.00/day
Maximum lighting equipment (No Moving Lights) $475.00/day Maximum lighting equipment (No Moving Lights)-same contract $850.00/2 days $1,125.00/3 days
$1,975.00/7 days
$1,975.00 + $250.00/day+ 7 days
Maximum lighting equipment (With Moving Lights) $1,000.00/day Maximum lighting equipment (With Moving Lights)-same contract $1,275.00/2 days $1,575.00/3 days
$2,050.00/7 days
$2,050.00+ $300.00/day+7 days
*Lighting does not include spotlights. See below for charges Item 9.2
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NOTE: A full cost estimate will be provided to Client within 15 days of Client’s submission of the Facility Use Application form and the $45.00 application fee. The Facility Use Application form must be completed and the application fee paid before the estimate is provided. Rental Client must approve the estimate before the appropriate deposit(s) can be accepted and the rental is confirmed.

NOTE: Rehearsal times may be scheduled at the time the booking is made, but shall be considered tentative until thirty (30) days prior to the first event date, and then will only be scheduled when they do not interfere with other scheduled events.

2. For events that are designed to be profitable, rental fees shall be ten percent (10%) of gross ticket sales vs. the base rent, whichever is higher, plus additional fees. Exceptions to this policy will be made for fund-raising events hosted by local non-profit organizations with ticket prices greatly exceeding the normal market rates (i.e. $100 benefit performance tickets).

In those cases, the 10% shall be computed based on the market rate of the tickets, as determined by the Theatre Manager.

3. The Theatre may be rented to approved “Primary Partner” clients at special reduced rates negotiated individually and subject to the review and approval of the City Council.

4. Late Booking Fee- a late booking fee will be assessed for any event booked less than 30 days in advance. The late booking fee is 10% of estimated rental charges (minus the deposit) or $300.00 flat fee, whichever is higher.

5. Fees for Additional Services will be charged as follows:
2026/27
a. Box Office Fee: $700.00/contract
Ticket processing for $250.00/per performance
third party discounted sites
(Goldstar, Groupon, etc.)
b. Box Office Ticket Printing: $ .30 / ticket
c. Janitorial Fee for Rehearsals: $175.00/day
Janitorial Fee for Performances: $225.00/performance
d. Labor (all billed at 4-hour minimum)*
Production Mgr./Technical Dir.: $60.00/hour
Technical Staff: $50.00/hour
Stagehand: $40.00/hour
House/Box Office Staff: $40.00-$50.00/hour
Security: $45.00/hour (6 hour minimum)
e. Lighting System: Outlined above
f. Marley Floor Rental $200.00 + labor to install & remove g. Marquee Sign Postings $33.00/message/week
$15.00/change to a message
h. Piano Rental Fee $100.00/day
i. Piano Tuning: $200.00/tuning
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j. Theatre Facility Fee $1.50-$5.00/ticket or person. (See item 6 below)
k. Processing Fee for permit changes: $30.00-$50.00/change l. Sound System: Outlined above
m. Spotlights: $100.00 each/day
n. Theatre Tours
During regular operation hours: $ 60.00/hour
During non-operation hours: $150.00/hour
o. Video Projector & Screen $500.00/day
Video Projector & Screen, same contract $750.00/2 days
$1,000.00/3 days
$1,500.00/7 days
$1,500.00 + $250.00/day + 7 days
p. Hazer (DF-50) $60.00/day
q. Application Fee $45.00/application
r. Rush Build Fee $100.00/build
s. Revised Build Fee $50.00-$100.00/per revision
t. Theatre Exterior Fees (Garden Courtyard/Theatre Plaza) $250-$1,000.00/ per contract (includes rental of space) $250-$500/ for janitorial per contract
*does not include theatre staff supervision
* Overtime applies after 8 hours and double overtime applies after 12 hours.

6. Theatre Facility Fee: A facility fee of $1.50-$5.00 per ticket shall be added in addition to the P&E fee as a pass-through cost to the patron. The Rental Client will accrue these fees for all complimentary and consignment tickets issued. Ticket sales report to be included with the settlement provided to Rental Clients.

Preservation & Enhancement Fee: A preservation and enhancement fee of $1.50 will be charged to the Rental Client for all events. For non-ticketed/free events the charge will be applied for every person in attendance to the rental event (to be calculated by the counting of free ticket stubs, or tally counted at the entry doors).

For ticketed events, the fee is passed on to the patron.

7. Theatre Box Office Fee: A fee of $.50-$5.00 per ticket may be added in addition to the Theatre Facility Fee and P&E fee as a pass-through cost to the patron.

8. Internet Ticket Sales: A fee of $5.00-$10.00 per ticket may be added in addition to the Theatre Facility Fee and P&E fee as a pass-through cost to the patron.

9. Exchange Fee: A fee of $.50 per ticket will be added to all approved exchange requests. This fee does not apply to ADA seating exchange requests. Exchange requests are subject to approval by the Theatre Manager.

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10.Premium WiFi: The Heritage Theatre/Campbell Community Center has an open WiFi connection that is available to anyone within the Theatre or its surrounding area. WiFi connections are not guaranteed. The theatre has a hardwire Comcast business connection with considerably more speed and bandwidth. This is available to renters for a fee of $100.00/day.

11.Indoor Marquee Sign Postings: The Heritage Theatre has an electronic marquee in the lobby which is available for custom images, schedules or information pertaining to events.

Art/images that are ready for immediate upload and meet the specifications set by the Theatre Manager are $50.00/day. Any artwork or image that must be developed by Theatre Staff is $50.00/day plus $40.00/hour for the image to be developed (one-hour minimum fee).

12.For events that do not meet the criteria above, which we can’t anticipate at this time, staff shall have the authority to charge appropriate and warranted fees at rates higher than those stated above, subject to the approval of the Recreation and Community Services Director.

13.Deposits:
a. Deposit Fee: $500.00-$5,000.00/Date of use. A refundable security/damage deposit fee of $500.00-$5,000.00/date of use will be required and will confirm your date on the Theatre calendar. Once the Theatre Manager has completed the Settlement Report, the deposit may be refunded to the Client, or may be withheld if additional fees are due for facility use, staffing, equipment and services provided, or fees applicable for damaged or lost equipment, necessary repairs to the facility, failure to complete pre and post event walkthroughs on event date(s), or failure to vacate premises at the end of the rental time listed on the Permit. Settlements will be performed within two weeks following last scheduled rental date. See section “C” of the Theatre Use Policy for details on cancellations. Deposits are non-transferable.
b. Any fees paid less than thirty (30) days in advance of the first use date must be paid by cash, guaranteed money order, or an approved charge card (VISA, MasterCard, Discover or American Express credit card) in the name of the hosting/producing organization/person.

14.Rental Uses of Theatre Garden Courtyard:

The Garden Courtyard, located immediately east of the Theatre, will be rented separately to individuals, businesses, and organizations, based on availability that does not conflict with scheduled Theatre events, according to the following rate schedule:

Application Fee: $ 30.00 / contract
Refundable Security Deposit: $200.00 / contract
Rental Fee: $400.00 / first 4 hours
$ 75.00 / each add’l hour
NOTE: The Garden Courtyard may be rented in conjunction with a Theatre Rental for $250.00. Rental (fees) of the Garden Courtyard does not include use of tables, chairs, podiums, or any other equipment. Rental Client is responsible for the outside rental of any/all furniture and/or equipment desired. All such items must be delivered the day of the event and removed the same day.

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15.Photography: The Theatre and/or Garden Courtyard may be reserved for the purpose of photography (wedding, families, special occasions, etc.), subject to availability, at the following rates:

Non-refundable Processing Fee: $ 25.00 / contract
Non-Commercial Photography: $100.00 / hour
Commercial Photography: $150.00 / hour
# # #
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City of Campbell
Recreation & Community Services Department

THEATRE PROGRAM

THEATRE USE POLICY
Heritage Theatre
at the Campbell Community Center
1 West Campbell Avenue
Campbell, CA 95008
(408) 866-2700
E-Mail: [email protected]
www.heritagetheatre.org
Approved by Council September 15, 2026
Effective September 16, 2026
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Theatre Use Policy

TABLE OF CONTENTS
Section Page Number
A. Applications 3
B. Payment of Fees 4
C. Cancellations 4
D. Insurance Requirements 5
E. Volunteers/Security/Professional Event Staff 6
F. Box Office Management 6
G. Support of Non-Profit Organizations 7
H. Discretionary Booking 7
I. Rental Uses of Garden Courtyard 7
J. Photography 8
K. Decorations 8
L. Concessions and Merchandise 9
M. Technical Labor 10
N. Promotions 12
O. General Rules and Regulations 12
P. Policy on Smoke/Fog Machines 14
Exhibit A: Disabled Seating Procedure & Seating Chart
Exhibit B: Directions to the Heritage Theatre
Exhibit C: Campbell Community Center Map
Exhibit D: Schedule of Fees and Charges
Campbell Heritage Theatre
1 W. Campbell Avenue, #C32
Campbell, CA 95008-1039
(408) 866-2700
Fax: (408) 866-2730
www.heritagetheatre.org
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THEATRE USE POLICY
The purpose of the Theatre Use Policy is to assure that the facility is utilized for recreational, cultural, educational, social and community service functions that meet the needs and interests of the community, as well as to set clear policies, procedures, regulations and rental fees regarding such uses.

Heritage Theatre
Maximum capacity: 802
A. Applications

1. Application must be made minimum of forty-five (45) days prior to the desired date of use. The Facility Use Application/Technical Rider must be completed and can be mailed, emailed, faxed or delivered in person. A non-refundable application fee of $45 dollar is due upon submitting a theatre application in order to receive a theatre estimate. This fee will be applied towards the total theatre rental fees in the settlement provided after the event. An estimate will be provided by the Theatre Manager and must be approved before the appropriate deposit(s) can be accepted.

Once the rental is confirmed, a Permit will be issued.
a. Any modifications made to the Permit must be made in writing.

Modifications can be made up to two weeks prior to first scheduled event date with an applicable processing fee for permit changes. Event information that alters the permit or permit add-on provided after the permit documents are signed by rental client and before 30 days prior to the start of the rental will be charged $30 per requested change. Event information that alters the permit or permit add-on provided less than 30 days out from an event will be charged $50 per requested change.

2. Applicants must be at least 18 years of age or older and authorized to enter into an agreement, and an approved representative must be present throughout the entire use of the facility.

3. The Permit provided to the Rental Client will include:
a. Estimate of base rent fees and all equipment, service and staffing costs.

Payment of the estimate is due 30 days in advance of the first use date if the event is private or free to the public. If admissions are sold, no payment other than the deposit is required in advance unless ticket sales do not cover the cost of the estimate (see section “b” below). Clients are to realize that estimates are provided based on their application and the Theatre Manager’s best estimate of use. Final charges will be assessed for actual facility and equipment use, as well as actual service and staffing fees provided and will be outlined in the final Settlement Report and result in a zero balance, additional fees due, or partial refund due to the client.

Settlements will be performed within two weeks following last scheduled rental date.

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b. All Rental Clients selling admissions to their event are required to use the Heritage Theatre Box Office for ticket sales and printing. If ticket sales do not cover the cost of the estimate within one month of the first scheduled event date, Rental Client is required to pay the estimate. The only acceptable forms of payment at that time will be VISA, MasterCard, Discover, American Express, cash, certified money order or cashier’s check.

See Section F, page 5 for details on Box Office Management.

4. Theatre Manager will complete a detailed estimate based on the completed Facility Use Application. If Rental Client is comfortable with the estimate, the deposit will be accepted. A refundable security/damage deposit of $500.00-$5,000.00/date is required and confirms your date. The deposit may be refunded post event if there are no additional fees due, or applied to (deducted from) the total balance due. In addition to fees for facility or equipment use, services, or staffing, the security/damage deposit may also be partially or fully withheld to apply to any charges for damaged or lost equipment, repairs to the facility, extra maintenance (i.e., carpet cleaning), failure to complete pre and post event walkthroughs or failure to vacate the premises at the end time on the Permit.

5. Rentals are not confirmed until applicant receives and signs a Permit. Absolutely no publicity or invitations shall be distributed until the applicant receives this official confirmation.

6. No overnight uses will be allowed. The time reserved must be inclusive of whatever time is needed for set-up, actual event time, and clean up at the conclusion of use.

7. Appointments to view the facility must be scheduled in advance with the Theatre Manager.

8. Theatre Scheduling: Due to the high financial impact of promoting routing dates priority will always be given to scheduling in-house productions. Rental dates by outside organizations may be booked up to twelve (12) months in advance of the event. If a scheduled date must be moved to accommodate an in-house production, every effort will be made to find an acceptable alternate date. In addition, preference for available dates will be given to those presenting successful annual events where a specific date is critical to the success of the event. High priority will be given to those signing multiple (4+) event contracts per year with the Heritage Theatre.

B. Payment of Fees: Any fees paid less than thirty (30) days in advance of the first use date must be paid by cash, cashier’s check, guaranteed money order, or an accepted charge card (Visa, MasterCard, Discover or American Express) in the name of the hosting/producing organization/person. For Theatre Use Fees and associated Staff and Equipment Use Fees, please see Exhibit D, Schedule of Fees and Charges for Use of the Heritage Theatre.

C. Cancellations: Notice of the desire to cancel a booking/reservation must be received, in writing, by the Rental Client whose name appears on the contract. If written notice of cancellation is received 120 days in advance of the first scheduled date of use, the deposit will be refunded, less a $250.00 processing fee and accrued rental fees to date.

Cancellations received less than 120 days in advance of the first use date shall be subject Item 9.2
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to loss of entire deposit. The City of Campbell reserves the right to cancel any use in emergency situations or when deemed necessary for the safety and best interests of the customers, the City of Campbell, or all concerned. In such cases, a refund of all fees and deposits paid will be provided. The City of Campbell will not be liable for any other expenses incurred by Rental Client in relationship to this booking, including but not limited to lost profit or income, expenses incurred, and incidental, special or consequential damages of any kind.

1. Force Majeure: If the Heritage Theatre is unfit for occupancy by Rental Client during the period covered by agreement, by reason of fire, earthquake, strike, civil disturbance or any other cause beyond the control of the City of Campbell, then the agreement shall be of no further force and effect.

For ticketed events, the City reserves the right to retain or recover costs incurred prior to cancellation, including but not limited to event setup and ticketing fees, administrative costs, documented staff labor, third-party vendor fees, and other direct expenses associated with preparing, administering, or canceling the event.

D. Insurance Requirements

1. The Rental Client shall be responsible for any and all damage to the Heritage Theatre and its’ premises, equipment and property during their occupation of the facility.

2. The Rental Client will be held responsible for all actions, behavior, and damages caused by his/her guests/attendees during occupancy of the facility.

3. All Rental Clients will be required to provide the City of Campbell with an original Certificate of Insurance providing proof of the following coverage:
a. General liability and property damage insurance in an amount not less than $1,000,000 per occurrence.
b. Additional insureds to be listed as:

1. The City of Campbell: 70 N. First Street, Campbell, CA 95008

2. VenueTech Management Group: 1821 S. Bascom Avenue, #270, Campbell, CA 95008
c. The insurance may not be cancelled or reduced without 30 days prior written notice to all named additional insureds.

4. Rental Clients requesting permission to sell alcoholic beverages must provide host liquor liability insurance in an amount not less than $1,000,000 per occurrence, in addition to the insurance outlined above, and evidence of any necessary license to sell alcoholic beverages. See Section 0, page 10 for more details on Concessions & Merchandise.

5. The City of Campbell and VenueTech Management Group are not responsible for accidents, injury, illness or loss of group or individual property.

6. Rental Client shall defend, release, indemnify and hold the City of Campbell and VenueTech Management Group, their officers, agents, employees and volunteers, harmless from and against any loss, liability, costs (including reasonably incurred attorney fees) claim or damages that may arise or result from, or be related to or be alleged to arise or resulted from activities of Rental Client, its officers, agents, employees and volunteers, and shall, at its own costs, expense and risk, defend any and all legal proceedings that may be brought against the City of Campbell and Item 9.2
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VenueTech Management Group, their officers, agents, employees and volunteers, on any claim, demand, or alleged liability, and shall satisfy any settlement or judgment that may be rendered against any of them arising from, or related to activities of Rental Client, and shall assume liability for any and all direct expense incurred in providing services pursuant to this policy, except for any claim, loss, liability, damage or cost directly arising out of the sole negligence or willful misconduct of the City or VenueTech Management Group.

7. A copy of detailed insurance specifications is available from the Theatre Manager.

E. Volunteers/Security/Professional Event Staff: Heritage Theatre volunteers are given priority to work all events. A minimum of 8 Heritage Theatre volunteers is required per event. If Theatre cannot secure these volunteers, event staff may be required at the expense of the Rental Client and the discretion of the Theatre Management and the City of Campbell.

1. Heritage Theatre volunteers will no longer be responsible for enforcing your no photo/recording requests. They will continue to be responsible for ticket taking, ushering, accident/incident reporting and emergency evacuations. It has become too difficult to control this with the abundance of smart phones and our volunteers' efforts are best focused on their other responsibilities listed above. We have a sign that will be displayed in the lobby and it will continue to be announced in the mandatory pre-recorded show announcement. We have found when our rental clients do their own pre-show announcement addressing photo/recording regulations for your show(s), it is effective, so please let the Production Manager know if you would like to have a mic set up for this. We also encourage you to provide volunteers or staff from your organization to enforce your requests, or we can hire private security staff from the company we contract out with to specifically handle this at your show(s). The additional expense of private security is $45.00/hour/person with a six-hour minimum. Please let the Theatre Manager know if you would like private security to handle this at least 2 weeks prior to your show(s), and how you want the paid staff to handle violations (ex: warning only, escort out, etc.)
F. Box Office Management

1. The Heritage Theatre reserves the right to manage all Box Office operations, including ticket printing and the collection of admission fees. Rental Clients of the Heritage Theatre will pay for Box Office services as well as ticket printing as per the attached Schedule of Fees and Charges.

2. Once the Ticket Information Sheet is submitted, the show build will begin based on the information provided. Additional information or changes to already provided information will result in a Revised Build Fee, charged at $50-$100/per change.

3. A Rush Build Fee will be charged for on-sales that require completion in less than the permitted 7 business days to be charged at $100.00 per build.

4. Presales are allowed online only. At the time of a general onsale, tickets will be offered online, through the Box Office and over the phone simultaneously.

5. The Box Office will not provide exchanges or refunds on tickets sold unless instructed in advance by the Rental Client. The Box Office will not replace lost tickets.

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6. Rental Client may not reproduce Theatre tickets. The Box Office provides assigned seating with each ticket unless otherwise specified. The Box Office closes thirty (30) minutes after a show begins and no tickets will be sold from that point on. Latecomers will be seated at the first appropriate break in the performance. No one is allowed in the Box Office except authorized Heritage Theatre personnel.

7. The Rental Client may choose to offer a discount on ticket prices for groups, seniors, or children if so desired. This discount information must be provided to the Box Office in writing at least two weeks in advance of ticket sales. Use of third party discounted sites (Groupon, Goldstar, etc.) must be approved by Theatre Manager and additional rental fees apply.

8. Complimentary tickets for any performance may be printed by the Theatre Box Office at the request of the Rental Client. Requests for more than twenty-five (25) complimentary tickets are not permitted. All fees from ticketing software associated with complimentary tickets will be charged to the rental client.

9. No admission charged: If an event is free or private, Theatre staff will count the number of patrons entering the Theatre, including infants. When the maximum allowable occupancy has been admitted, the doors will be closed and no one else will be permitted entry. If Rental Client has family, friends or other people who have arrived with the cast and crew and entered the facility through the backstage, but will require a seat in the audience, they must report to the Theatre Manager or designee to be counted.

G. Support of Non-Profit Organizations: A discounted rate schedule for non-profit organizations is not available.

H. Discretionary Booking: At the discretion of the Recreation and Community Services Director, requests for rental of the Theatre may be denied if the proposed event presents a potential conflict to the target market of a previously scheduled event. Criteria include the market saturation of a particular event type, long-term relationship of an existing Theatre client, and/or the financial impact on the Theatre. Additionally, the Recreation and Community Services Director shall regulate or prohibit such activity or use, which in his/her judgment is determined to be of a hazardous nature, is potentially dangerous or damaging to property, or is not in the best interests of the citizens of the City of Campbell.

I. Rental Uses of the Garden Courtyard: The Garden Courtyard, located immediately east of the Theatre, may be separately rented to individuals, businesses, and organizations, based on availability that does not conflict with scheduled Theatre events. The Garden Courtyard may be rented in conjunction with a Theatre rental for pre-event or intermission activities only and not for post event activities. Rental of the Garden Courtyard does not include use of tables, chairs, canopies, podiums, or any other equipment. Separate rental fees for this area are included in the attached Schedule of Fees and Charges.

J. Rental Uses of the Theatre Plaza: The Theatre Plaza, located immediately in front of the Theatre, may be separately rented to individuals, businesses, and organizations, based on availability that does not conflict with scheduled Theatre events. The Theatre Plaza may be rented in conjunction with a Theatre rental for pre-event or intermission activities only and not for post event activities. Rental of the Theatre Plaza does not include use of tables, chairs, canopies, podiums, or any other equipment. Separate rental fees for this area are Item 9.2
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included in the attached Schedule of Fees and Charges. Theatre Plaza use may require additional theatre staff oversight.

K. Tents/Canopies: All tents/canopies used on the exterior of the Theatre must be in conjunction with a Theatre rental permit. The use of tents/canopies must be requested in advance by the permit holder and approved in advance by both the Theatre Manager and the Production Manager. The use of tents/canopies must comply with the California Fire Code. Permitted tents include enclosed tents up to 400 square feet and open-sided tents up to 700 square feet. All tent materials must be flame-resistant and properly labeled.

Tents must be securely anchored, structurally stable, and placed at least 20 feet away from buildings, other tents, vehicles, and lot lines, unless otherwise exempted by code.

Cooking or heating inside tents is not permitted. All setups must maintain clear exits, comply with accessibility standards, and must not obstruct public walkways. Local fire department regulations may still apply and must be followed.

L. Photography: The Theatre and/or Garden Courtyard may be reserved for the purpose of photography, subject to availability and fees outlined in the attached Schedule of Fees and Charges.

M. Interior Decorations: Any decorating, covering of, or changes to the facility shall be discussed at the time of application. The Rental Client shall be responsible for putting up any decorations and all other special preparations necessary for their function. Set up/decorating inside and outside of the Theatre may only occur during the rental time on the Permit. All decorations shall be removed at the conclusion of the function. Rental Client shall be responsible for the removal of all decorations, attachment material, special preparations, Rental Client’s personal property, and any rented equipment before the Rental Client vacates the premises. The Garden Courtyard and the Loading Dock Driveway must be vacated by the end of the rental. Method of installation of all decorations must have prior approval of the Theatre Manager.

1. All decorations must be flameproof or fire retardant.

2. The use of cellophane, all tapes, nails, staples, screws, etc., is NOT allowed on walls, ceilings, Theatre seating, furniture, or floors. Insufficient removal of any items will result in additional clean-up charges to be withheld from deposit. If Rental Client is granted permission to use tape, it must be painter’s tape.

3. Decorations may NOT be hung from light fixtures, ceiling, heat detector, emergency lights, or acoustical wall/ceiling tiles.

4. Decorations are not allowed in or around the reflecting pools in the front plaza

5. Open flames (such as lighted candles) are NOT allowed.

6. All plants, trees, and shrubs must be in waterproof containers and must be carefully placed so as not to damage floor, tables, or block fire exits.

7. No foreign substance may be applied to the floor.

8. No water features or decorations that are water-related/water based are allowed.

9. No rice, birdseed, confetti, hay bales, sand, etc., are permitted at the Heritage Theatre or on surrounding sidewalks and parking lots. Use will cause forfeiture of entire damage deposit.

10.For safety reasons, relocation or rearrangement of Heritage Theatre equipment is not permitted. Staff on duty must perform any rearrangement of furnishings and/or Item 9.2
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equipment. All doors, aisles and hallways must be kept clear in the event of an emergency evacuation.

11.For customer comfort, energy efficiency, and consideration of our neighbors, all doors and windows must remain closed throughout the entire event.

N. Exterior Decorations: All exterior decor must be approved in advance by both the Theatre Manager and the Production Manager. If approved, decor may be placed at the front of the theatre, in the Theatre Plaza, the Garden Courtyard, the grassy area west of the Box Office, and along the paths adjacent to—but not blocking—the walkway between the Community Center parking lot and the Theatre Plaza. All decor and signage must comply with California fire code and must not obstruct access to any public walkways.

Signage may not be staked into the ground. No decor may be placed in or around the reflecting pools. Use of the Theatre Plaza may require additional oversight from theatre staff. Associated fees are outlined in the attached Schedule of Fees and Charges. Exterior decor may also require additional theatre staff oversight. All rules and regulations for interior decor also apply to exterior decor.

O. Concessions and Merchandise

1. The City of Campbell retains the right to all concessions within the Heritage Theatre and its environs. If Rental Client is granted permission to sell concessions or merchandise, the City of Campbell shall receive 25% of gross sales. The Rental Client or its designated representative must complete and sign a merchandise/concessions inventory and sales reconciliation (count-in/count-out) with Theatre staff immediately prior to the event and immediately following the event.

2. Concessions/refreshments/snacks in the lobby are limited to dry pre-packaged items only such as chips, candy, cookies. The Garden Courtyard must be rented for all other foods that are served or sold.

3. Alcoholic Beverages: The use and/or sale of alcoholic beverages is allowed by prior written permit application only and must be requested at the time of application. a. Alcoholic beverages to be consumed on the premises shall be limited to beer, wine and champagne. Absolutely no hard liquor is allowed. b. If the presence of alcohol is deemed to conflict with other previously scheduled uses/users, the request may be denied.
c. Alcohol is NOT allowed at youth-oriented events or events held in honor of a minor.
d. A group or organization wishing to sell alcoholic beverages at their function or provide alcoholic beverages with the cost of admission, must first obtain approval from the Theatre Manager, and then the Police Chief; and upon approval will be required to obtain, at their own expense, the appropriate permits and licenses from the State Alcoholic Beverage Control Board (24 hour liquor license). Liquor liability insurance is also required from the sponsoring organization. Liquor licenses may be obtained at the: Alcoholic Beverage Commission, Santa Clara County District Office, 224 Airport Parkway, Suite 620, San Jose, CA 95110.

Telephone: (408) 346-2417 Evidence of this license must be on file in Item 9.2
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the Heritage Theatre office at least ten (10) days prior to the event/function.
e. Rental Clients sponsoring events where alcohol is sold will be required to obtain liquor liability insurance per the coverage outlined in sections D3 and D4.
f. Rental Clients sponsoring/hosting events where alcoholic beverages are served or sold will be required to have security, at the Rental Client’s cost and expense. Theatre Manager will determine the security needs for the event.

4. Rental Clients are permitted to sell non-food items, subject to the following restrictions
a. Advance notice must be given to the Theatre Manager 30 days prior to event and sale of items.
b. All items for sale must be approved by the Theatre Manager in advance c. All items for sale must be related to the event. The Heritage Theatre will not be used for merchandising or retail sales of items unrelated to an event or performance.
d. The City of Campbell shall receive 25% of gross sales if the Rental Client sells and 30% if the House sells.
e. The City of Campbell reserves the right to restrict or not permit the sale of any items at the sole discretion of the Theatre Manager.

5. Receptions involving the serving of food and drink prior to or during events require approval from the Theatre Manager and must be arranged in advance. Additional cleaning and damage deposits may be required.

P. Technical Labor

1. Labor: To ensure the protection of all in-house equipment and the professional presentation of events, the Heritage Theatre will require all Rental Clients to utilize the House technical staff for their events, at the rates outlined on the attached Schedule of Fees and Charges. The Theatre Manager shall have the discretion to schedule staff deemed necessary to provide for a quality production, at the expense of the client.

2. Lighting and sound equipment in the Heritage Theatre will be operated by approved Technicians. If a Rental Client wishes to use their own members as additional technicians, each of these persons must demonstrate, to the Manager and/or Technical Director, their capabilities to perform before they may be employed. They must also be certified by the Theatre Manager and Technical Director and provide proof of Workers Compensation Insurance.

3. The Theatre is equipped with a video projector, screen and associated accessories.

This equipment is only to be operated by a Theatre technician. The projector is a 12,000 lumens Epson projector with a semi-long lens. The projector is permanently mounted on the front light rail of the balcony. A DVD and Blu-Ray player is available, or Rental Clients may bring in a laptop computer to be used with the Theatre projection system. A 10½’ x 14’ screen is also available for use. The rental rate for the projector is outlined in Exhibit D. Projector specs are in the full tech packet.

4. The Heritage Theatre will not be used for long-term storage of sets, props or costumes. Run-of-event storage will be provided as available and by arrangement Item 9.2
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with the Theatre Manager or Technical Director. Materials left in the Heritage Theatre after strike of event will become property of the City of Campbell unless previous arrangements have been made with the Theatre Manager or Technical Director. The City of Campbell assumes no responsibility for stored or abandoned property or materials at any time. The Rental Client will be responsible for any costs the City of Campbell incurs related to removal and/or disposal of abandoned property or materials. The deposit could be forfeited if property or materials are abandoned.

5. Each Rental Client must provide a Production Stage Manager for their event. If they are not able to provide such a person who is, in the Theatre Manager’s opinion, qualified to fill this position, one will be provided at the Rental Client’s cost at the rates set forth in the attached Schedule of Fees and Charges.

6. The Rental Client must coordinate the needs of all aspects of their event with the Theatre Manager and Theatre Production Manager. Rental Client is required to schedule a 1-hour maximum production meeting with the Theatre Production Manager within 2 – 4 weeks prior to their first event date.

7. No changes or modifications to the fixed equipment or facilities may be made, nor may any equipment be removed from the Theatre or altered. Any structural or electrical changes may be made only by Theatre staff with the Theatre Manager’s and/or Building Maintenance Supervisor’s approval and only by qualified staff or licensed contractors. All labor needed to make such changes and reverse them will be charged to the Rental Client at the set Tech rate or, in the case of an outside contractor, cost plus 15%.

8. No event taking place in the Heritage Theatre may be recorded, televised, broadcasted or otherwise recorded for commercial reproduction or use in any manner without the express written consent of the City of Campbell. The Client must hold the City of Campbell and VenueTech Management Group harmless from such activity and must also meet all insurance requirements prior to the event.

9. All scenic units, props, and electrical equipment provided by the Client is subject to a safety inspection by the Technical Director or his/her designee. The City of Campbell reserves the right to prohibit the use of any scenery, property or equipment that is deemed by the City to be unsafe. Equipment judged to be unsafe must be brought up to minimum standards before being used, or must be removed from the premises.

10.Specialized needs for sound or lighting must be arranged at least two weeks in advance with the Theatre Manager or Technical Director.

11.The Rental Client will not obstruct or restrict the use of any doors, exits, hallways or aisles in the Heritage Theatre. No tripods, cable, or equipment of any kind will be allowed in the audience seating area without the prior approval of the Theatre Manager. The approved location for additional production equipment is located in the rear orchestra section on house right “Overflow production and seating area”.

If the overflow production and seating area is used for production or equipment, patrons will not be allowed to be seated in this section. Under no circumstances may the view of the audience be obstructed.

Item 9.2
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Q. Promotions

1. No signage, posters, flyers or advertisements for any event may be posted in or on the Heritage Theatre or the Campbell Community Center at any time.

Advertisements, posters, flyers and marketing material for off-site use related to the event must be approved by the Theatre Manager. If prior approval and permission is granted, Client is responsible for putting up and taking down all promotional material. Everything must be removed at the conclusion of the event. Rental Client will be billed at a rate of $45.00/hour for labor involved in removing any promotional material that is left after event.

2. Promotion of event is the sole responsibility of the Rental Client.

3. A marquee will be provided for the public notice of events at the Heritage Theatre for a weekly fee of $33.00. Additional changes/modifications to the original marquee message will be billed at $15 each. The marquee will be under control of the City of Campbell, and notices for events will be posted at the City of Campbell’s discretion.

R. General Rules and Regulations

1. Weapons (including knives or swords) firearms, explosives, open flames or lasers are not permitted in the Heritage Theatre.

2. At no time will any illegal activity, performances, or exhibition be allowed in the Heritage Theatre.

3. Helium balloons are not allowed in the auditorium.

4. Gambling on the premises is prohibited. Gambling shall be defined as any game of skill, chance or raffle, played with cards or any other device for money or any other representative item of value.

5. If you are having equipment delivered or picked up at times other than your scheduled use, arrangements need to be made in advance with the Production Manager. You will be billed for the time involved with the delivery/pick-up. Delivery vehicles should enter at the Campbell Avenue entrance and back up to the loading dock.

6. Drop-offs: please have buses and cars drop-off and load passengers in the indented Loading Area directly in front of the Theatre on Campbell Avenue.

7. During rehearsals: only the first four rows in the auditorium may be used- the remainder of the house, balcony and lobby are closed. Backstage restrooms are to be used. The only exception to this policy is if the Rental Client has agreed in advance to pay for a scheduled House Manager.

8. Please remember: no feet on chairs, no scratching of seat backs, do not sit on tables, report any damage to the facility or equipment to the Production or House Manager, no running or yelling inside the Theatre, and no food or beverages in the auditorium (bottled water is the only exception).

9. Everyone must access and egress the stage from designated stairs.

10.Facility permits and reservations cannot be transferred, assigned or sublet.

11.All Volunteers and performers are required to enter through the Backstage Door near the loading dock (see attached map) for both rehearsal and performance dates. Volunteers must be clearly identified with a badge provided by Rental Client.

12. All sound checks on performance days must be completed 90 minutes before showtime- no exceptions.

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13. With the exception of service animals necessary to assist a person with a bona fide disability, animals will only be permitted in the Theatre when authorized, in advance, by the Manager.
a. Service animals are not pets, they are working animals individually trained to do work or perform a task for the benefit of a person with a disability (including physical, sensory, psychiatric, intellectual or other mental disability). Service animals are dogs (any breed) or mini horses. b. Service animals will be removed or excluded if they are not under control and/or housebroken and cannot compromise safe facility operation. c. Service animals may accompany its handler in all areas of the facility where the public is allowed to go.
d. Service animals are not emotional support or companion animals.

14. Smoking and vaping is not allowed in the Heritage Theatre or anywhere outside of the Heritage Theatre. The entire Campbell Community Center is a smoke and vapefree environment. No food or drink with the exception of bottled water and beverages in approved Theatre Concert Cups will be allowed in the audience seating area at any time.

15. The breezeways leading out to the Garden Courtyard must remain clear at all times.

There is no set up allowed in this area.

16. Improper dumping including, but not limited to, food, chemicals, beverages and ice is not allowed inside the Theatre or surrounding areas. All items must be properly disposed of in the Theatre dumpster on the loading dock.

17. Strollers are not permitted in the Theatre auditorium or lobby. All patrons will be asked to take strollers back to their cars.

18. The Client shall be responsible for the orderly conduct of all persons using the Heritage Theatre during their event. The City of Campbell reserves the right to remove, or have removed, any person behaving in an unlawful, disrespectful, or objectionable manner.

19. Fights, vandalism, or destructive behavior on the part of any member of a Rental Client’s group or its audience will be grounds for immediate cancellation of the event and all future events. In this case, all fees will be forfeited.

20.The Heritage Theatre will be provided to Rental Client in a clean and ready state.

Rental Client is responsible for leaving the Heritage Theatre in the same state they found it. Any cleaning that must be done beyond ordinary wear and tear will be charged to the Rental Client at the Maintenance rate outlined in the Schedule of Fees and Charges.

21. Under no circumstances will a larger number of persons be allowed in the audience seating area than the total number of seats.

22. Lost and Found: The Heritage Theatre, City of Campbell, VenueTech Management Group, and volunteer staff will not be responsible for lost-and-found items, but will hold found items for a maximum of 30 days. All items of substantial value will be turned over to the City of Campbell Police Department. Inquiries for lost items should be directed to the Theatre Manager at (408) 866-2797.

23. The maximum capacity in the backstage area is 40 persons between Dressing Rooms A, B & C. All costume changes, hair & makeup need to be contained in a dressing room. Due to privacy concerns and safety issues, pipe and drape will no Item 9.2
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longer be set up for dressing room space. The Theatre staff will set up pipe and drape for a single 5’x5’ quick change booth if needed.

24.There is a designated “free speech area” for all Theatre events. Theatre Manager or Production Manager can provide the information/location as needed.

25. The City of Campbell reserves the right to amend these policies and/or fees and charges as deemed necessary without advance notice. Previously approved reservations will not be affected by new rates.

S. Policy on Smoke/Fog Machines & Other Pyrotechnical Devices Only 1 DF-50 Hazer is allowed to be used/operated in the Heritage Theatre.

Tests performed with other models, and observed by the County Fire Marshal, resulted in the activation of the building’s fire alarm system. This is not an acceptable result, and policy strictly prohibits shutting the fire system off during such a use. The Theatre hazer may be rented, or the same model of hazer (DF-50) can be rented through a third party vendor. Only one DF-50 hazer is allowed.

Dry ice may be allowed if it does not make the stage too wet and slippery, creating a safety hazard for the performers. Not all pyrotechnic devices are ruled out. Other pyrotechnic devices that result in a small “bang”, “pop”, or short “flame” may be allowed, but must first be tested and approved by the County Fire Marshal on a case-by-case basis.

Requests for appointments must be made in advance with the Theatre Manager by calling: 408.866.2797. The Theatre Manager will then schedule an appointment meet with the Santa Clara County Fire Department. Any charges assessed by the Fire Department for this appointment will be the responsibility of the Client.

T. The Fees & Charges associated with rental uses of the Heritage Theatre (outlined in the following section) were revised and approved by Campbell City Council in June 2025.

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Campbell Heritage Theatre

EXHIBIT A

BOX OFFICE PROCEDURE

FOR RELEASE OF WHEELCHAIR, TRANSFER & COMPANION SEATS

FOR TICKETED EVENTS WITH RESERVED SEATING
The Heritage Theatre is committed to serving persons with disabilities. The Theatre contains orchestra and balcony level seating to accommodate persons in wheelchairs and their companion(s). The Theatre is designed to accommodate the required (ADA) number of wheelchair (8) and adjacent companion seats. Wheelchair and companion seating is available in the following locations:
• Balcony
o House left: 1 wheelchair and 2 companions
o House right: 1 wheelchair and 2 companions
• Orchestra
o House left, rear: 2 wheelchairs and 3 companions
o House left, front: 2 wheelchairs and 3 companions
o House right, front: 2 wheelchairs and 3 companions
Transfer seats are also available in addition to the sections mentioned above. The arm rests on transfer seats swing open and the patron may transfer from a wheelchair into a permanent Theatre seat. The transfer seats are designated in the following locations:
• Balcony
o Row FF, aisle seats 101 & 113
• Orchestra
o Row B, aisle seats 101 & 115
o Row Q, aisle seats 101 & 115
o Row T, aisle seats 1 & 2
The rear house right section is an overflow section for additional sound or videotaping equipment.

If this area is not used for these purposes, up to nine portable seats can be placed in this area and sold for overflow seating.

Wheelchair and companion seating purchases are available on-line; they may also be purchased through the Box Office, either in-person or by telephone (408-866-2700) during Box Office hours.

At the time tickets go on sale for a show, the Theatre guarantees that 1 companion seat can be sold with each wheelchair seat. Ticket requests for more than 1 companion should be reviewed with the Box Office Manager or Theatre Manager. All efforts will be made to seat companions adjacent to or as near as possible to the disabled party, as space allows. All seats designated for Item 9.2
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disabled patrons (including transfer seats) with an adjacent companion seat will be placed on hold for persons with disabilities until such time as is described below.

Should the remainder of the house sell out (with the exception of trouble and artist seats), wheelchair accessible, transfer and companion seats will be released in the following manner:
• Three days (72 hours) after all non-accessible seating is sold out in the entire auditorium, one-half of all unsold designated wheelchair accessible, transfer and companion seating will be released for sale to the general public.
• The day of the show, all remaining wheelchair accessible, transfer and companion seats will be released for sale to the general public, except for 1 wheelchair accessible and companion seat, which will be held until showtime.

Box Office staff are trained to ask patrons with disabilities to specify if they would like to purchase a transfer seat or if they would like to be seated in one of the wheelchair sections. In most cases companion seats will be comfortable padded portable seating. The only fixed companion seats are located in the front row of the Orchestra section. All handicap seating will be sold on a firstcome, first-served basis. As with all seats, disabled patrons who prefer a certain seat or section are encouraged to purchase their tickets early for best availability.

This procedure will apply to all in-house productions and rental client events with ticketed admission with reserved seating.

Campbell Heritage Theatre

BOX OFFICE PROCEDURE FOR WHEELCHAIR, TRANSFER &

COMPANION SEATS FOR GENERAL ADMISSION TICKETED EVENTS

WITH AND NON-TICKETED EVENTS
For General Admission events and events free to the public (non-ticketed events), the seats mentioned above will be reserved for persons with disabilities. The designated locations for wheelchair, transfer and companion seating are marked with the universal handicap sign and the actual seats will be marked as well. At all times, a minimum of 8 wheelchair and 8 companion seats must be reserved for persons with disabilities, with at least 1 wheelchair and 1 companion seat available in each section (front orchestra, rear orchestra and balcony). Able-bodied patrons sitting in these sections/seats will be asked to move by the House Manager if the minimum number of seats are not available for persons with disabilities. Patrons refusing to relocate will be asked to leave or be escorted out. There are no exceptions.

The approved location for additional production equipment or seating is located in the rear orchestra section on house right “Overflow Production and Seating Area”. If this area is used for production or equipment, patrons will not be allowed to be seated in this section. If no additional equipment is used, up to 9 portable seats or 2 wheelchair & 3 companion seats may be used in this section. Under no circumstances may the view of the audience be obstructed.

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EXHIBIT A
Item 9.2
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EXHIBIT B
Item 9.2
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EXHIBIT C
Theatre loading dock
driveway/semi/bus parking
Item 9.2
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EXHIBIT D
Schedule of Fees and Charges

1. The Theatre will be rented to individuals, businesses, and organizations based on the following rate schedule and in addition to the fees in #5 below:
2026/27
Theatre Rates for Non-Peak Days (Monday – Wednesday):

Base rent for up to an 8-hour period on one day: $550.00/day Additional time on the same event day: $125.00/hour
Rehearsal time for up to an 8-hour period on one day: $375.00/day Additional rehearsal time on the same day: $125.00/ hour Standard sound equipment (up to two microphones) N/C*
*Sound Tech hourly rates are applied for microphone usage Full sound equipment (full use of sound system) $125.00/day Minimum lighting equipment $125.00/day
Maximum lighting equipment (No Moving Lights) $400.00/day Maximum lighting equipment (No Moving Lights)-same contract $700.00/2 days $900.00/3 days
$1,750.00/7 days
$1,750.00 +$225.00/day+7 days
Maximum lighting equipment (With Moving Lights) $925.00/day Maximum lighting equipment (With Moving Lights)-same contract $1,200/2 days $1,500/3 days
$1,900/7 days
$1,900 + $300/day + 7 days
*Lighting does not include spotlights. See below for charges Theatre Rates for Peak Days (Thursday – Sunday):

Base rent for up to an 8-hour period on one day: $800.00/day Additional time on the same event day: $125.00/hour
Rehearsal time for up to an 8-hour period on one day: $500.00/day Additional rehearsal time on the same day: $125.00/hour Standard sound equipment (up to two microphones) N/C
Full sound equipment (full use of sound system) $200.00/day Minimum lighting equipment $175.00/day
Maximum lighting equipment (No Moving Lights) $475.00/day Maximum lighting equipment (No Moving Lights)-same contract $850.00/2 days $1,125.00/3 days
$1,975.00/7 days
$1,975.00 + $250.00/day+ 7 days
Maximum lighting equipment (With Moving Lights) $1,000.00/day Maximum lighting equipment (With Moving Lights)-same contract $1,275.00/2 days $1,575.00/3 days
$2,050.00/7 days
$2,050.00+ $300.00/day+7 days
*Lighting does not include spotlights. See below for charges Item 9.2
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NOTE: A full cost estimate will be provided to Client within 15 days of Client’s submission of the Facility Use Application form and the $45.00 application fee. The Facility Use Application form must be completed and the application fee paid before the estimate is provided. Rental Client must approve the estimate before the appropriate deposit(s) can be accepted and the rental is confirmed.

NOTE: Rehearsal times may be scheduled at the time the booking is made, but shall be considered tentative until thirty (30) days prior to the first event date, and then will only be scheduled when they do not interfere with other scheduled events.

2. For events that are designed to be profitable, rental fees shall be ten percent (10%) of gross ticket sales vs. the base rent, whichever is higher, plus additional fees. Exceptions to this policy will be made for fund-raising events hosted by local non-profit organizations with ticket prices greatly exceeding the normal market rates (i.e. $100 benefit performance tickets).

In those cases, the 10% shall be computed based on the market rate of the tickets, as determined by the Theatre Manager.

3. The Theatre may be rented to approved “Primary Partner” clients at special reduced rates negotiated individually and subject to the review and approval of the City Council.

4. Late Booking Fee- a late booking fee will be assessed for any event booked less than 30 days in advance. The late booking fee is 10% of estimated rental charges (minus the deposit) or $300.00 flat fee, whichever is higher.

5. Fees for Additional Services will be charged as follows:
2026/27
a. Box Office Fee: $700.00/contract
Ticket processing for $250.00/per performance
third party discounted sites
(Goldstar, Groupon, etc.)
b. Box Office Ticket Printing: $ .30 / ticket
c. Janitorial Fee for Rehearsals: $175.00/day
Janitorial Fee for Performances: $225.00/performance
d. Labor (all billed at 4-hour minimum)*
Production Mgr./Technical Dir.: $60.00/hour
Technical Staff: $50.00/hour
Stagehand: $40.00/hour
House/Box Office Staff: $40.00-$50.00/hour
Security: $45.00/hour (6 hour minimum)
e. Lighting System: Outlined above
f. Marley Floor Rental $200.00 + labor to install & remove g. Marquee Sign Postings $33.00/message/week
$15.00/change to a message
h. Piano Rental Fee $100.00/day
i. Piano Tuning: $200.00/tuning
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j. Theatre Facility Fee $1.50-$5.00/ticket or person. (See item 6 below)
k. Processing Fee for permit changes: $30.00-$50.00/change l. Sound System: Outlined above
m. Spotlights: $100.00 each/day
n. Theatre Tours
During regular operation hours: $ 60.00/hour
During non-operation hours: $150.00/hour
o. Video Projector & Screen $500.00/day
Video Projector & Screen, same contract $750.00/2 days
$1,000.00/3 days
$1,500.00/7 days
$1,500.00 + $250.00/day + 7 days
p. Hazer (DF-50) $60.00/day
q. Application Fee $45.00/application
r. Rush Build Fee $100.00/build
s. Revised Build Fee $50.00-$100.00/per revision
t. Theatre Exterior Fees (Garden Courtyard/Theatre Plaza) $250-$1,000.00/ per contract (includes rental of space) $250-$500/ for janitorial per contract
*does not include theatre staff supervision
* Overtime applies after 8 hours and double overtime applies after 12 hours.

6. Theatre Facility Fee: A facility fee of $1.50-$5.00 per ticket shall be added in addition to the P&E fee as a pass-through cost to the patron. The Rental Client will accrue these fees for all complimentary and consignment tickets issued. Ticket sales report to be included with the settlement provided to Rental Clients.

Preservation & Enhancement Fee: A preservation and enhancement fee of $1.50 will be charged to the Rental Client for all events. For non-ticketed/free events the charge will be applied for every person in attendance to the rental event (to be calculated by the counting of free ticket stubs, or tally counted at the entry doors).

For ticketed events, the fee is passed on to the patron.

7. Theatre Box Office Fee: A fee of $.50-$5.00 per ticket may be added in addition to the Theatre Facility Fee and P&E fee as a pass-through cost to the patron.

8. Internet Ticket Sales: A fee of $5.00-$10.00 per ticket may be added in addition to the Theatre Facility Fee and P&E fee as a pass-through cost to the patron.

9. Exchange Fee: A fee of $.50 per ticket will be added to all approved exchange requests. This fee does not apply to ADA seating exchange requests. Exchange requests are subject to approval by the Theatre Manager.

Item 9.2
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10.Premium WiFi: The Heritage Theatre/Campbell Community Center has an open WiFi connection that is available to anyone within the Theatre or its surrounding area. WiFi connections are not guaranteed. The theatre has a hardwire Comcast business connection with considerably more speed and bandwidth. This is available to renters for a fee of $100.00/day.

11.Indoor Marquee Sign Postings: The Heritage Theatre has an electronic marquee in the lobby which is available for custom images, schedules or information pertaining to events.

Art/images that are ready for immediate upload and meet the specifications set by the Theatre Manager are $50.00/day. Any artwork or image that must be developed by Theatre Staff is $50.00/day plus $40.00/hour for the image to be developed (one-hour minimum fee).

12.For events that do not meet the criteria above, which we can’t anticipate at this time, staff shall have the authority to charge appropriate and warranted fees at rates higher than those stated above, subject to the approval of the Recreation and Community Services Director.

13.Deposits:
a. Deposit Fee: $500.00-$5,000.00/Date of use. A refundable security/damage deposit fee of $500.00-$5,000.00/date of use will be required and will confirm your date on the Theatre calendar. Once the Theatre Manager has completed the Settlement Report, the deposit may be refunded to the Client, or may be withheld if additional fees are due for facility use, staffing, equipment and services provided, or fees applicable for damaged or lost equipment, necessary repairs to the facility, failure to complete pre and post event walkthroughs on event date(s), or failure to vacate premises at the end of the rental time listed on the Permit. Settlements will be performed within two weeks following last scheduled rental date. See section “C” of the Theatre Use Policy for details on cancellations. Deposits are non-transferable.
b. Any fees paid less than thirty (30) days in advance of the first use date must be paid by cash, guaranteed money order, or an approved charge card (VISA, MasterCard, Discover or American Express credit card) in the name of the hosting/producing organization/person.

14.Rental Uses of Theatre Garden Courtyard:

The Garden Courtyard, located immediately east of the Theatre, will be rented separately to individuals, businesses, and organizations, based on availability that does not conflict with scheduled Theatre events, according to the following rate schedule:

Application Fee: $ 30.00 / contract
Refundable Security Deposit: $200.00 / contract
Rental Fee: $400.00 / first 4 hours
$ 75.00 / each add’l hour
NOTE: The Garden Courtyard may be rented in conjunction with a Theatre Rental for $250.00. Rental (fees) of the Garden Courtyard does not include use of tables, chairs, podiums, or any other equipment. Rental Client is responsible for the outside rental of any/all furniture and/or equipment desired. All such items must be delivered the day of the event and removed the same day.

Item 9.2
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15.Photography: The Theatre and/or Garden Courtyard may be reserved for the purpose of photography (wedding, families, special occasions, etc.), subject to availability, at the following rates:

Non-refundable Processing Fee: $ 25.00 / contract
Non-Commercial Photography: $100.00 / hour
Commercial Photography: $150.00 / hour
# # #
Item 9.2
Tuesday, September 15, 2026 177 of 234
City Council Report
DATE: September 15, 2026
TITLE: Budget Adjustment to Fund Replacement Blackout Shades for the Heritage Theatre (Resolution/Roll Call Vote)
RECOMMENDED ACTION:

That the City Council approve the Council Resolution authorizing a budget adjustment to fund the replacement of the remaining six blackout shades at the Heritage Theatre.

BACKGROUND
The Heritage Theatre opened its doors to the public on February 14, 2004. Since that time, the facility has been used to present a professional season of shows and as a rental venue for cultural events, privately promoted performances, and corporate meetings.

A Preservation and Enhancement Fee of one dollar is added to the cost of each ticket sold (or for each person in attendance at non-ticketed or free events). The purpose of the fee is to generate revenue to fund major repairs, upgrades, or equipment purchases that enhance the use or appearance of the Theatre.

DISCUSSION
Last fiscal year, staff identified the need to replace two of the ten motorized blackout shades in the main auditorium. Initially, the project called for replacing only the two affected shades with a zippered side-channel design, which was expected to resolve the existing malfunctions without requiring replacement of the entire system.

However, after further investigation and consultation with the selected vendor, it was determined that the mechanical housing would also need to be replaced. Given that the existing shades are more than 20 years old, staff determined that a complete replacement of the affected shades would be the most appropriate and cost-effective long-term solution.

During the selection process, staff also explored the possibility of matching the new shade fabric to the eight remaining window coverings. The vendor confirmed that an exact color match was not possible. Although the proposed fabric is similar in color to the existing shades, the difference will be noticeable to patrons upon entering the auditorium.

Item 9.3
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As a result, staff recommend replacing the remaining six blackout shades to provide a consistent appearance throughout the auditorium to avoid a visibly mismatched installation. The Friends of the Heritage Theatre have already approved and ordered two of the eight remaining eight blackout shades that are needed. Staff recommend using the Preservation and Enhancement Fund to replace the remaining six shades.

FISCAL IMPACT
The total cost to replace the six remaining blackout shades is $50,040, which would be funded from the Heritage Theatre Preservation and Enhancement Fund. The Preservation and Enhancement Fund has an unaudited balance of $227,481 as of June 30, 2026.

ALTERNATIVES

1. Do not replace all six remaining shades at this time and provide staff with alternative direction regarding the amount and scope of the project.

2. Use an alternate funding source to fund the proposed project.

3. Do not approve the proposed project and provide alternative direction to staff.

PREPARED BY: Natasha Bissell, Recreation and Community Services Director Item 9.3
Tuesday, September 15, 2026 179 of 234

Report Approval Details
Document Title: Budget Adjustment to Fund Purchase Replacement Shades for the Heritage Theatre.docx
Attachments: Resolution_HT Blackout Shades PandE.docx
Budget Adjustment.pdf
Final Approval
Date:

September 09, 2026
This document and all of its attachments were approved and signed as outlined below:

Natasha Bissell , Recreation & Community Services Director Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
Item 9.3
Tuesday, September 15, 2026 180 of 234
RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

AUTHORIZING A BUDGET ADJUSTMENT TO FUND THE REPLACEMENT OF SIX

BLACKOUT SHADES AT THE HERITAGE THEATRE
WHEREAS, the Heritage Theatre opened to the public on February 14, 2004, and continues to serve as a venue for professional productions, community performances, cultural events, and corporate gatherings; and
WHEREAS, a Preservation and Enhancement Fee of one dollar per ticket (or per attendee at non-ticketed events) is collected to fund major repairs, upgrades, and equipment purchases that enhance the function and appearance of the Theatre; and WHEREAS, staff identified the need to replace two of the ten motorized blackout shade in the main auditorium due to existing malfunctions; and WHEREAS, after further investigation and consultation with the selected vendor, staff determined that replacement of the mechanical house was also necessary and, given the age of the existing shades, that replacement of the affected shades was the most appropriate and cost-effective long-term solution; and
WHEREAS, the vendor confirmed color matching was not possible, and the replacement fabric would be noticeable to patrons and would result in a visibly mismatched appearance throughout the auditorium; and
WHEREAS, the Friends of the Heritage Theatre have approved and ordered two of the eight remaining blackout shades, leaving six additional blackout shades to be replaced; and
WHEREAS, staff recommend replacing the remaining six blackout shades to provide a consistent appearance throughout the auditorium; and
WHEREAS, the total cost to replace the six remaining blackout shades is $50,040, which will be funded from the Heritage Theatre Preservation and Enhancement Fund; and WHEREAS, the Preservation and Enhancement Fund had an unaudited balance of approximately $227,481 as of June 30, 2026, sufficient to cover the proposed expenditures;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby authorizes a budget adjustment in the amount of $50,040 from the Heritage Theatre Preservation and Enhancement Fund to fund the replacement of six blackout shades at the Heritage Theatre.

PASSED AND ADOPTED this ____ day of September, 2026 by the following roll call vote:

AYES: Councilmembers
Item 9.3
Tuesday, September 15, 2026 181 of 234
NOES: Councilmembers
ABSENT: Councilmembers
APPROVED:
________________________
Daniel E. Furtado, Mayor
ATTEST:
________________________
Andrea Sanders, City Clerk
Item 9.3
Tuesday, September 15, 2026 182 of 234
City of Campbell
Request for Budget Adjustments
Department/Program Division Date Request No.

September 15, 2026 BA-3
Budget to be Reduced
Fund/Program Account Number Description Amount
Budget to be Increased
Fund/Program Account Number Description Amount

EXPENDITURE
101.529 7430 Professional Services - Motorized Blackout Shade Replacement $ 50,040.00 REASON FOR REQUEST - BE SPECIFIC:

Recreation
Will Fuentes Natasha Bissell Brian Loventhal
529 - Heritage Theatre
To appropriate $50,040 towards the replacement of motorized blackout shades at the Heritage Theatre. The replacement cost will be funded by the Heritage Theatre Preservation and Enhancement Fund.

Finance Director Recreation and Community Svcs Director City Manager Item 9.3
Tuesday, September 15, 2026 183 of 234
City Council Report
DATE: September 15, 2026
TITLE: Accepting Funds from the Santa Clara County Library District for the Measure O – Campbell Library Renovations Project No. 23-SS (Resolution/Roll Call Vote)
RECOMMENDED ACTION:

That the City Council adopt a resolution accepting a $268,388.96 reimbursement from the Santa Clara County Library District for Measure O – Campbell Library Renovations Project and authorizing the Finance Director to perform the associated budget adjustment.

BACKGROUND
Of the $50M in Measure O general obligation (GO) bond funds available, $20M was originally allocated to each project (Library and Police) with $10M allocated to Shared Improvement Costs. Later, as the design process began, further allocations whereby $5.5M of Shared Improvement Costs were distributed to the individual projects, resulting in a total Measure O-funded project budget of $20.5M for the Library Renovations (No. 23-SS) and $25M for the Police Operations Building (No. 23-RR).

Between 2018 and 2023, the Library Renovations Project also received additional funding from various State and local programs. These include $4.7 million from the California State Library Building Foward Grant Program and $500,000 from the Silicon Valley Clean Energy (SVCE) Decarbonization Demonstration Grant Program. In 2019, the Santa Clara County Library District (SCCLD) contributed $510,000 in funding to the Library Renovation Project that would be applied to the project’s construction. With these additional sources, the total budget for the Library Renovation became $26.2M.

On September 19, 2023, Council awarded the Library Renovations Project to Lathrop Construction Associates Inc. and updated the total project costs to $22.3M. Given that the funds available in its current budget at the time were $26.2M, the project was projected to have an available unallocated balance of approximately $3.9M in Measure O funds. When the new Police Operations Building project bids results came in over budget, in November 2023, City Council approved a transfer of $3.7M from the Library Project (23-SS) budget to the Police Operations Building Project (23-RR).

DISCUSSION
Item 9.4
Tuesday, September 15, 2026 184 of 234

The following table provides a summary of the funding source including adjustments to the Measure O allocation and the total balance status. The revised amount column reflects a transfer of Measure O funds from the Library to the Police Operations Building project in the amount of $3.7M.

Available Funds – Library Project (No. 23-SS)
Funding Source Original Amount Revised Amount
(after $ transfer to PD
project)
Measure O Allocation $ 20,500,000 $ 16,800,000
State Library Building Forward Grant
Program
$ 4,718,450 $ 4,718,450
SVCE Decarbonization Demonstration
Grant Program
$ 500,000 $ 500,000
Santa Clara County Library District
(SCCLD)
$ 510,000 $ 510,000
Total Available Funds $ 26,228,450 $ 22,528,450
Total Project Expenditures $ 22,300,000 $ 22,709,512
Fund Balance $ 3,928,450 $ (181,062)
The shortfall shown in the table above will be closed through a reimbursement from the Santa Clara County Library District (SCCLD) for additional work the District requested. In March 2024, SCCLD requested electrical revisions to enhance the user experience in the new space. Because the project was already well into construction, implementing design changes at that stage would have been cost-prohibitive. Instead, SCCLD agreed to reimburse the City for the costs associated with these requested revisions.

As the construction continued, SCCLD requested several scope additions, including structural revisions for the Children’s Play Space and for the public art piece, library security enhancements, and audiovisual (AV) improvements. In total, SCCLD requested revisions amounted to $268,388.96. Because this amount is greater than the $181,062 shortfall indicated in the table above, it will result in a remaining project balance of $87,326.96 in the Library project budget.

Item 9.4
Tuesday, September 15, 2026 185 of 234

Staff recommends that the City Council adopt a resolution accepting a $268,388.96 reimbursement from SCCLD for the requested revisions to the Campbell Library and authorize the Finance Director to perform the associated budget adjustment.

FISCAL IMPACT
The reimbursement of $268,388.96 made by SCCLD will be deposited to the City's Measure O Capital Projects Fund and appropriated to the Measure O – Campbell Library Renovations Project 23-SS. The reimbursement amount of $268,388.96 will result in a remaining balance of $87,326 in the Library budget and returned to fund balance for planned site improvements around the Civic Center complex pending the completion of the renovation of the prior Police Department space in City Hall (Phase 2).

ALTERNATIVES
Do not accept improvements and budget adjustments and direct staff accordingly.

PREPARED BY: Francisco Castellanos, Senior Project Manager Item 9.4
Tuesday, September 15, 2026 186 of 234

Report Approval Details
Document
Title:

Report - Accepting Funds from the Santa Clara County Library District for the Measure O - Campbell Library Renovations Project No. 23-SS.docx
Attachments: City_Council_Report_County Library Funds_Resolution.docx BA-14 (FY 2026) - Accept Reimbursement from SCCLD for
Measure Library (23-SS).pdf
Final Approval
Date:

September 09, 2026
This document and all of its attachments were approved and signed as outlined below:

Item 9.4
Tuesday, September 15, 2026 187 of 234
RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

ACCEPTING FUNDS FROM THE SANTA CLARA COUNTY LIBRARY

DISTRICT AND AUTHORIZING AN ASSOCIATED BUDGET ADJUSTMENT FOR THE MEASURE O – CAMPBELL LIBRARY RENOVATIONS PROJECT (23-SS)
WHEREAS, of the $50M in Measure O general obligation (GO) funds, $20M was originally allocated to each of the Library and Police projects; and WHEREAS, $5.5M was allocated to Shared Improvement Costs, $20.5M for the Campbell Library Renovations Project (No. 23-SS) and $25M for the Police Operations Building Project (No. 23-RR); and
WHEREAS, between 2018 and 2023, the Library Renovations Project received additional funding from State and local programs, including $4.7M from the California State Library Building Forward Grant Program, $500,000 from the Silicon Valley Clean Energy (SVCE) Decarbonization Demonstration Grant Program, and $510,000 contributed by the Santa Clara County Library District (SCCLD) in 2019, bringing the total budget for the Library Renovations Project to $26.2M; and
WHEREAS, on September 19, 2023, the City Council awarded the Library Renovations Project to Lathrop Construction Associates, Inc. and updated the total project cost to $22.3M, resulting in a projected available unallocated budget of approximately $3.9M in Measure O funds; and
WHEREAS, when the new Police Operations Building project bids results came in over budget, in November 2023, City Council approved a transfer of $3.7M from the Library Project (23-SS) budget to the Police Operations Building Project (23- RR); and
WHEREAS, based on the final Measure O allocation, the total available funds for the Library Renovations Project (No. 23-SS) are $22,528,450 and the total project expenditures are $22,709,512, resulting in a project shortfall of $181,062; and WHEREAS, in March 2024, SCCLD requested electrical revisions to enhance the user experience in the new space. Because the project was already well into construction, implementing design changes at that stage would have been costprohibitive. Instead, SCCLD agreed to reimburse the City for the costs associated with these requested revisions; and
WHEREAS, the additional work included electrical revisions to enhance the user experience in the new space, structural revisions for the Children’s Play Space and for public art piece, library security enhancements, and audiovisual (AV) Item 9.4
Tuesday, September 15, 2026 188 of 234
improvements, for a total amount of $268,388.96; and
WHEREAS, the total of SCCLD requested revisions amounted to $268,388.96.

Because this amount is greater than the $181,062 shortfall indicated in the table above, it will result in a remaining project balance of $87,326.96 in the Library project budget); and
WHEREAS, the resulting remaining balance of $87,326 in the Library budget will return to fund balance for planned site improvements around the Civic Center complex pending completion of the renovation of the prior Police Department space in City Hall (Phase 2).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby 1) accepts a $268,388.96 reimbursement from the Santa Clara County Library District for the Measure O – Campbell Library Renovations Project (No. 23-SS); and 2) authorizes the Finance Director to perform the associated budget adjustment.

PASSED AND ADOPTED this _____ day of __________, 2026 by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

APPROVED:
________________________
Daniel E. Furtado, Mayor
ATTEST:
_______________________
Andrea Sanders, City Clerk
Item 9.4
Tuesday, September 15, 2026 189 of 234
City of Campbell
Request for Budget Adjustments
Department/Program Division Date Request No.

September 15, 2026 BA-14
Budget to be Reduced
Fund/Program Account Number Description Amount
Budget to be Increased
Fund/Program Account Number Description Amount

REVENUES
448.518 4965 Other Revenue - Reimbursement from Santa Clara County Library 268,388.96 District

EXPENDITURES
448.23SS 7883 Improvements - Library 268,388.96
REASON FOR REQUEST - BE SPECIFIC:

Finance Director Public Works Director City Manager
Public Works
Will Fuentes Amy Olay Brian Loventhal
23-SS - Civic Center Improvements - Library
Renovation
To accept reimbursement from the Santa Clara County Library District for requested construction revisions for the Measure O Library Renovation Project (23-SS)
Item 9.4
Tuesday, September 15, 2026 190 of 234
City Council Report
DATE: September 15, 2026
TITLE: Approval of Cost Share Agreement with the City of San Jose in the Not to Exceed Amount of $335,000 for the Resurfacing of McCoy Avenue and Olympia Avenue (Resolution/Roll Call Vote)
RECOMMENDED ACTION:

That the City Council adopt a resolution 1) approving the cost share agreement with the City of San Jose in the not to exceed amount of $335,000 for the resurfacing of McCoy Avenue and Olympia Avenue; 2) authorizing the City Manager to execute said agreement; and 3) authorizing the Finance Director to perform associated budget adjustments.

BACKGROUND
As a best practice for inter-jurisdiction cooperation, the City of Campbell (City) collaborates with adjacent agencies (town of Los Gatos and City of San Jose) on joint pavement projects, ensuring optimized resource allocation, efficient project delivery, and cost savings. For example, currently as part of the City’s Hamilton Avenue Rehabilitation and Complete Street Project (23-BB), the City will resurface San Jose’s portion of Hamilton Avenue east of Bascom Avenue where the two cities share jurisdiction. The cost share agreement was approved by the City Council on June 3, 2025. Such collaborations allow roadways with adjacent portions in different jurisdictions to be improved with greater efficiency, less disruption to the community, and leverages better pricing of a larger contract.

This year, San Jose has plans to resurface McCoy Avenue and Olympia Avenue. McCoy Avenue is where Forest Hill Elementary School is located and is a heavily used residential collector connecting the adjacent neighborhood with Quito Road to the west and Harriet Avenue to the east. From approximately 140 feet east of Meta Drive to 165 feet west of Weston Avenue, the jurisdiction line (City and San Jose) on McCoy Avenue follows the street centerline, and continuing from that point east to Harriet Avenue, the City owns the full width of the street.

Olympia Avenue is a residential street that connects to Camden Avenue. Of the street's total length of 1,060 feet, the City owns the full width of the street, except for the southernmost 290 feet where the City owns only the western half of the street from the centerline with the other half by San Jose.

DISCUSSION
Item 9.5
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McCoy Avenue pavement was resurfaced in late 2000. It has an average pavement condition index (PCI) of 36 out of 100 for an ideal condition. As such, it is in need of pavement work. San Jose is proposing to install a thin asphalt concrete overlay with pavement dig-out repairs.

For Olympia Avenue, San Jose is also proposing to install a thin asphalt concrete overlay.

Although Olympia Avenue has an overall PCI of 52, portions of the street have heavy wear and will require pavement dig-out repairs.

A shared cost agreement is necessary to facilitate this inter-jurisdictional cooperation, and to allow Campbell to compensate San Jose for City’s share of the cost for the agreed work to be performed in the amount of $335,000. This amount includes construction, construction contingency and a 10% administration cost for San Jose to administer the project. The work is scheduled to be completed during FY27.

FISCAL IMPACT
The proposed funding source for the cost share is through the unallocated budget from the Hamilton Avenue Resurfacing and Complete Street Project 23-BB (Project 23-BB) due to the outcome of an extremely favorable bid. Project 23-BB includes various federal, state, and local street maintenance funding sources, including Vehicle Impact Fee, which are recommended as the appropriate funding source for the proposed cost share. Staff will return to City Council at the conclusion of Project 23-BB to discuss the final project budget reconciliation.

The attached resolution has been prepared to: 1) approve a cost share agreement with the City of San Jose in the not to exceed amount of $335,000 for the resurfacing of McCoy Avenue and Olympia Avenue; 2) authorize the City Manager to execute said agreement; and 3) authorize the Finance Director to perform associated budget adjustments.

ALTERNATIVES

1. Do not authorize the cost share opportunity with the City of San Jose and delay resurfacing McCoy Avenue, and Olympia Avenue to future years.

2. Do not approve the proposed cost share agreement and direct staff on revising the terms of the agreement.

PREPARED BY: Fredrick Ho, Senior Civil Engineer
Item 9.5
Tuesday, September 15, 2026 192 of 234

Report Approval Details
Document
Title:

Report - Approval of Cost Share Agreement with the City of San Jose in the Not to Exceed Amount of $335,000 for the Resurfacing of McCoy Avenue and Olympia Avenue .docx
Attachments: Cost Share Agreement Resolution.docx
Campbell Cost-Sharing Agreement.pdf
Budget Adjustment.pdf
Final Approval
Date:

September 09, 2026
This document and all of its attachments were approved and signed as outlined below:

Amy Olay, Public Works Director
William Seligmann, City Attorney
Will Fuentes, Finance Director
Andrea Sanders, City Clerk
Brian Loventhal, City Manager
Item 9.5
Tuesday, September 15, 2026 193 of 234
RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL

APPROVING A COST SHARE AGREEMENT WITH THE CITY OF SAN JOSE IN THE NOT TO EXCEED AMOUNT OF $335,000 FOR THE RESURFACING OF MCCOY

AVENUE AND OLYMPIA AVENUE
WHEREAS, as a best practice for inter-jurisdiction cooperation, the City of Campbell (City) collaborates with adjacent agencies (town of Los Gatos and City of San Jose) on joint pavement projects, ensuring optimized resource allocation, efficient project delivery, and cost savings; and
WHEREAS, this year, the San Jose has plans to resurface McCoy Avenue and Olympia Avenue; and
WHEREAS, from approximately 140 feet east of Meta Drive to 165 feet west of Weston Avenue, the jurisdiction line on McCoy Avenue follows the street centerline and continuing from that point east to Harriet Avenue, the City owns the full width of the street WHEREAS, out of the street's total length of 1,060 feet, the City owns the full width of the street on Olympia Avenue, except for the southernmost 290 feet where the City owns only the western half of the street from the centerline; and WHEREAS, McCoy Avenue has an average pavement condition index (PCI) of 36 out of 100 for an ideal condition; and
WHEREAS, Olympia Avenue has an overall PCI of 52; and
WHEREAS, a shared cost agreement is necessary to facilitate this inter-jurisdictional cooperation, and to allow Campbell to compensate San Jose for Campbell’s share of the cost for the agreed work to be performed in the amount of $335,000; and WHEREAS, the proposed funding source for the cost share is Vehicle Impact Fees through unallocated budget from Hamilton Avenue Resurfacing and Complete Street Project 23-BB (Project 23-BB).

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby: 1) approves the cost share agreement with the City of San Jose in the not to exceed amount of $335,000 for the resurfacing of McCoy Avenue and Olympia Avenue; 2) authorizes the City Manager to execute said agreement; and 3) authorizes the Finance Director to perform associated budget adjustments.

PASSED AND ADOPTED this day of 2026, by the following roll call vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

Item 9.5
Tuesday, September 15, 2026 194 of 234
APPROVED:
_____________________________
Dan E. Furtado, Mayor
ATTEST:
___________________________
Andrea Sanders, City Clerk
Item 9.5
Tuesday, September 15, 2026 195 of 234