Los Altos City Council
June 9, 2026

CITY COUNCIL MEETING
AGENDA
June 9, 2026 - 7:00 PM
In Person
PARTICIPATION: Members of the public are invited to participate by attending the meeting at the Los Altos Council Chamber, located at Los Altos City Hall, 1 N. San Antonio Rd, Los Altos, CA, during the meeting.

Public comments are accepted in person at the physical meeting location or via email to [email protected] or through the Public Comment forum on the city website: Public Comments Form.

RULES FOR CONDUCT: According to Los Altos Municipal Code, Section 2.05.010 "Interruptions and rules for conduct": Understanding that the purpose of the city council meetings is to conduct the people's business for the benefit of all the people, in the event that any meeting of the city council is willfully interrupted by a person or group of persons so as to render the orderly conduct of the meeting impossible, the mayor, mayor pro tem, or any other member of the city council acting as the chair may order the removal of the person or persons responsible for the disruption and bar them from further attendance at the council meeting, or otherwise proceed pursuant to Government Code Section 54957.0 or any applicable penal statute or city ordinance.

REMOTE MEETING OBSERVATION: Members of the public may view the meeting via the link below, but will not be permitted to provide public comment via Zoom or telephone. Public comments will be accepted in person, and members of the public may submit written comments by following the instructions below. https://losaltosca-gov.zoom.us/j/94237047448?pwd=RcGzsUNk8xH3EtpBktiNiXviFWMmWg.1 Telephone: 1-669-444-9171 / Webinar ID: 942 3704 7448 / Passcode: 729858 SUBMIT WRITTEN COMMENTS: Before the meeting, comments on matters listed on the agenda may be emailed to [email protected]. Emailed public comments sent directly to the City Council, either as a group or individually, will not be included in the agenda packet but may be disclosable as part of a public records request. Emails sent to [email protected] will be included in the appropriate agenda packet and are also disclosable as part of a public records request.

Please note: Personal information, such as e-mail addresses, telephone numbers, home addresses, and other contact information, is not required to be included with your comments. If this information is included in your written comments, it will become part of the public record. Redactions and/or edits will not be made to public comments, and the comments will be posted as submitted. Please do not include any information in your communication that you do not want to be made public.

Correspondence submitted in hard copy/paper format must be received by 2:00 p.m. on the day of the meeting to ensure distribution prior to the meeting. Hard copy/paper format comments presented during the meeting will be distributed to the City Council the following day. Members of the public may present a copy of their comments or attachments to the City Clerk for distribution to the City Council.

The Mayor will open public comment and will announce the length of time provided for comments during each item.

AGENDA

CALL MEETING TO ORDER

ESTABLISH QUORUM

PLEDGE OF ALLEGIANCE

REPORT ON CLOSED SESSION

CHANGES TO THE ORDER OF THE AGENDA

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Members of the audience may bring to the Council's attention any item that is not on the agenda. The Mayor will announce the time speakers will be granted before comments begin. Please be advised that, by law, the City Council is unable to discuss or take action on issues presented during the Public Comment Period.

According to State Law (also known as “The Brown Act”) items must first be noted on the agenda before any discussion or action.

CONSENT CALENDAR
These items will be considered by one motion. Prior to consideration of the Consent Calendar, a Councilmember may remove an item from the Consent Calendar. Any item removed from the Consent Calendar for discussion will be handled at the discretion of the Mayor.

1. Approval of Meeting Minutes - Draft Regular Meeting of May 26, 2026

2. Adoption of Resolution - Calling for District Election Adopt a Resolution calling for a General Municipal Election to be held on November 3, 2026 for two City Council seats, one in District 2 and one in District 4, and requesting the services of the County Registrar of Voters to conduct the election and consolidate it with the General Election

3. Adoption of Ordinance – Amend Chapter 2.24 Disposal of Unclaimed Property Waive second reading and adopt the ordinance to amend Los Altos Municipal Code Chapter 2.24 Disposal of Unclaimed Property to update sections governing the holding, disposal and auction notice requirements for unclaimed property, in order to reflect current legal requirements and City practices

4. Receive Report - Los Altos Vacancies
Pursuant to Government Code section 3502.3, receive a report for informational purposes only, in compliance with Assembly Bill (AB) 2561, regarding the City’s workforce vacancies, recruitment efforts, and retention strategies

5. Adoption of Resolution - Administration Building B Project Acceptance Adopt a resolution accepting completion of the Los Altos Youth Center conversion to Admin Building B (CF-01044); authorize the Park & Recreation Director to record a Notice of Completion as required by law; and find the project categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 as the project is consisting of interior or exterior alterations involving such things as interior partitions, plumbing and electrical

conveyances, with none of the exceptions in CEQA Guidelines Section 15300.2 applicable

6. Adopt a Resolution Authorizing Additional Signatories for the Department of Resources Recycling and Recovery (CalRecycle) Grant Programs
Authorize the City Manager, Assistant City Manager, City Engineer, Public Works Engineering Department Director, or their designee, to execute in the name of the City of Los Altos all CalRecycle grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds, and implement the approved grant project

7. Adoption of Resolution - SB707 Disruption Policy
Adopt a Resolution approving the Senate Bill 707 (SB707) Disruption Policy and Approve the use of Zoom Technologies for Remote Public Participation

PUBLIC HEARING

8. Adoption of Resolution - Report of Sewer Service Charges Adopt a Resolution approving the Report of Sewer Service Charges for the Fiscal Year 2026/27 and directing the Filing of Charges for Collection by the County Tax Collector

9. Proposed FY2026/27 Operating Budget and FY2027-FY2031 Five-Year Capital & Major Maintenance Program
Staff recommends the City Council adopt the following items:

1. City of Los Altos Resolution - Establishing the FY2026/27 Appropriations Limit

2. City of Los Altos Resolution - Adopting the FY2026/27 Fee Schedule

3. City of Los Altos Resolution - Approving the FY2026/27 Salary Schedule

4. City of Los Altos Resolution - Reaffirming the FY2026/27 Utility Users Tax rate

5. City of Los Altos Resolution - Reaffirming the FY2026/27 Transient Occupancy Tax rate

6. City of Los Altos Resolution - Authorizing the Park Impact Fee

7. City of Los Altos Resolution - Adopting the FY2026/27 Operating Budget

8. City of Los Altos Resolution - Adopting the FY2027-FY2031 Five-Year Capital Improvement and Major Maintenance Program (CIMMP)

9. City of Los Altos Resolution - Receiving and filing the FY2023/24 Development Impact Fee Annual Report

10. City of Los Altos Resolution - Receiving and filing the FY2024/25 Development Impact Fee Annual Report

11. City of Los Altos Resolution - Adopting Five-Year Findings for the Park Impact Fee Fund

12. City of Los Altos Resolution - Adopting Five-Year Findings for the Traffic Impact Fee Fund

13. City of Los Altos Resolution - Authorizing FY2025/26 year-end interfund transfers and reserve reallocations

14. City of Los Altos Purchasing Policy

DISCUSSION ITEMS

10. Acceptance of Certificate - Initiative Petition
Accept the City Clerk's Certificate of Sufficiency of Initiative Petition, and take action on one of the following:
- Adopt the initiative without alteration; or
- Place the initiative on the next general election; or - Order a report pursuant to Election Code Section 9212, which would be due no later than June 25, 2026

11. Introduction of Ordinance - Amending Commissions and Commission Membership Introduce Ordinance that will amend the Commission membership to 5 members for Complete Streets, Environmental, Financial, and Planning through a natural attrition process, meaning that no current Commissioners will be removed from their membership as a result of this action; transition the Youth Commission to a Youth Council Academy that will no longer serve in an advisory capacity to the City Council and will not be subject to the Brown Act; and, transition the Senior Commission to a Senior Committee that will serve in an advisory capacity to City staff and will not be subject to the Brown Act

12. Introduction of Ordinance - Sidewalk Maintenance and Repair Introduce and waive further reading of an ordinance adding a new Chapter 9.32 of the Municipal Code entitled "Maintenance and repair of sidewalks"

INFORMATIONAL ITEMS / COUNCIL Q&A
There will be no discussion or action on Informational Items. The Council Q&A will be included in the packet the day of the meeting.

13. Tentative Council Calendar and Housing Element Implementation Update Calendar

14. 06-09-2026 Council QA

COUNCIL/STAFF REPORTS AND DIRECTIONS ON FUTURE AGENDA ITEMS

ADJOURNMENT

SPECIAL NOTICES TO THE PUBLIC
According to the City Council Norms and Procedures: It will be customary to have a recess at approximately 9:00 p.m. Before the recess, the Mayor shall announce whether any items will be carried over to the next meeting. The established hour after which no new items will be started is 11:00 p.m. Remaining items, however, may be considered by consensus of the Council.

In compliance with the Americans with Disabilities Act, the City of Los Altos will make reasonable arrangements to ensure accessibility to this meeting. If you need special assistance to participate in this meeting, please get in touch with the City Clerk at least 72 hours before the meeting.

All public records relating to an open session item on this agenda, which are not exempt from disclosure according to the California Public Records Act, and that are distributed to a majority of the legislative body, will be available for public inspection at the same time that the public records are distributed or made available to the legislative body.

From: Jim Wing
To: Public Comment
Subject: June 9, 2026 Council Meeting Agenda Item 12
Date: Friday, June 5, 2026 2:33:03 PM
Los Altos Mayor Meadows and Distinguished Council Members Subject: June 9, 2026 Council Meeting agenda item 12 Introduction of Ordinance Chapter 9.32 Sidewalk Maintenance and Repair.

I support this ordinance and request you have staff add to new Chapter 9.32 the five code approved design drawings numbers for “sidewalk” configurations that are already approved for use in residential street shoulder right-a-way area in Los Altos Single Family Residential Zone.

This addition will ensure that home owner’s repair / new construction contractor will do the work per Los Altos standards. Most important phase of construction / repair is the “sidewalk” base. Also, it will provide Los Altos Construction Inspector with documentation of work performed.

Construction Drawings:

SU-8 Sidewalk Cross-section
SU 10 Planter Strip with Detached Sidewalk
SU-11 Driveway with Attached Sidewalk Detail
SU-20ABC Pedestrian Walkway with Stormwater Shoulder Improvement SU-21 Rolled Curb / Sidewalk Modification
Thank you for your consideration!
Jim Wing, Milverton Road, Los Altos

From: Maria Bautista
To: Anna Toledano; City Council; Public Comment
Subject: Library Courtyard Project: Heritage Orchard Trees are Dying Date: Monday, June 8, 2026 6:02:55 PM
Attachments: IMG_0502.heic
IMG_0501.heic
IMG_0503.heic
IMG_0504.heic
The two Blenheim Apricot trees shown here need immediate attention. Both trees were alive and thriving just weeks ago; one even has fruit.

The Los Altos Library Courtyard Project has guarantees of tree protection. Please ensure the permit Conditions of Approval are being met.

Thank you,
Maria Bautista

From: Pawan Deshpande
To: Public Comment
Subject: Please end Los Altos" contract with Flock Safety Date: Tuesday, June 9, 2026 12:59:17 PM
Dear City Council Members,
I'm a longtime Los Altos resident, and I'm asking you to get rid of Flock cameras in our city because of privacy concerns.

As you may know, in early 2026, Mountain View Police ran a routine internal audit and discovered that Flock had quietly enabled a nationwide search setting, without the department's knowledge or permission, allowing federal agencies to access residents' license plate data. This is illegal under California law, which requires a court order before ALPR data can be shared with out-of-state or federal agencies.

Mountain View's police chief said he no longer had confidence in Flock and shut down all 30 cameras. The City Council then voted unanimously to cancel the contract. And when Mountain View asked for access logs from that period, Flock said it didn't retain them. So there's no way to know what was actually searched or shared.

Flock's response? They said sharing settings "are always under the control of the agency." Mountain View's mayor said the city was promised full data control and that federal access would never happen. That promise turned out to be worthless.

Flock's business model runs on easy data sharing across jurisdictions. That's fundamentally in tension with any city's ability to actually protect its residents' data. No contract clause fixes that.

Can each of you honestly guarantee that Los Altos residents' data won't end up the same way, accessed by agencies we never consented to, with no record of what was seen? I don't think you can.

Sincerely,
Pawan Deshpande

CITY OF LOS ALTOS

CITY COUNCIL MEETING MINUTES
TUESDAY, MAY 26, 2026
7:00 p.m.
1 N. San Antonio Rd. ~ Los Altos, CA
Sally Meadows,, Mayor
Larry Lang, Vice Mayor
Pete Dailey, Councilmember
Jonathan D. Weinberg, Councilmember
CALL MEETING TO ORDER – Sally Meadows, Mayor, called the meeting to order at 7:00 p.m.

ESTABLISH QUORUM – All Councilmembers were present.

PLEDGE OF ALLEGIANCE – Sally Meadows, Mayor, led the Pledge of Allegiance.

REPORT ON CLOSED SESSION
There was no Closed Session meeting on May 26, 2026.

CHANGES TO THE ORDER OF THE AGENDA
There were no changes to the agenda order.

SPECIAL ITEM
Issue Proclamation Recognizing May 2026 as Asian American, Native Hawaiian, and Pacific Islander Month
Sally Meadows, Mayor, presented the proclamation.

PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
The following members of the public spoke during Public Comment:
• Julia Rapoza

CONSENT CALENDAR
Motion by Dailey and Second by Lang to approve the Consent Calendar. Motion carried unanimously by roll call vote.

1. Approval of Meeting Minutes – Draft Regular Meeting of May 12, 2026

2. Adoption of Resolution - Accept COPS Grant Funding
Accept grant funding from the Citizens Option for Public Safety/Supplemental Law Enforcement Services Fund (COPS/SLESF) and authorize revenue and allocate it to the Supplemental Law Enforcement Services Fund for Fiscal Year 2025–26

3. Adopt a Resolution - Approval of Memorandum of Understanding Adopt a Resolution to approve a successor Memorandum of Understanding between the City of Los Altos and Los Altos Municipal Employee Association

City of Los Altos
City Council Regular Meeting Minutes
May 26, 2026

4. Adoption of Resolutions - 999 Fremont Avenue
-Adopt a resolution to transfer funding allocation from the Almond Fire Station Reroofing Project and the Fire Station Improvement Project and provide an additional $118,008 to fully fund the project; and
- Adopt a resolution authorizing the City Manager to execute a construction contract with Ron Paris Construction Co., Inc., in the amount of $657,069.99 and 20% contingency, if needed, in the amount not to exceed $130,00.00. The total project cost will be $787,070.00, and the Council’s action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines Section 15301(a), and that is one of the circumstances in the CEQA Guidelines

DISCUSSION ITEMS

5. Adoption of Resolution - Contract Extension with Flock Safety Adopt a resolution authorizing the City Manager to execute a contract extension with Flock Safety in the amount of $160,000 to extend the current contracts for an additional two years for maintenance and service for the 25 Flock Safety cameras in the City of Los Altos
Saskia Lagergren, Police Chief, presented the report.

The following members of the public spoke regarding the item:
• Jan Pepper • Julie Lunn
• Julia Rapoza • Brian Jones
• Austin M • Fritz Koehler
• Cara Silver • Melissa Dinwiddie
• Pierre Laurent • Julia Monahan
• Linda Baker • Mariya
• KBT • Maryann
• Leah • Louis Newman
• Ariel
Motion by Lang to direct staff to negotiate renewing the contract to align the two Flock contracts, with termination for convenience with reasonable notice. Motion withdrawn.

Motion by Weinberg and Second by Lang to direct staff to negotiate renewing the contract with conditions to terminate either contract for convenience on 30 days' notice; that the two current contracts be brought into alignment, either by folding the second contract into the first, or by changing the terms of the first contract; and that if Flock does not agree to these conditions, then the City will give notice of termination of the contract no later than 30 days before it expires.

Motion carried 3-1 by roll call vote, with Councilmember Dailey opposed.

The City Council took a recess at 9:32 p.m.

The City Council reconvened at 9:42 p.m.

City of Los Altos
City Council Regular Meeting Minutes
May 26, 2026

6. Introduction of Ordinance –Amend Chapter 2.24 Disposal of Unclaimed Property Waive first reading and introduce an ordinance to amend Los Altos Municipal Code Chapter 2.24 Disposal of Unclaimed Property to update sections governing the holding, disposal and auction notice requirements for unclaimed property, in order to reflect current legal requirements and City practices
Saskia Lagergren, Police Chief, presented the report.

There were no speakers regarding the item.

Motion by Weinberg and Second by Lang to waive first reading and introduce an ordinance, by title only, to amend Los Altos Municipal Code Chapter 2.24 Disposal of Unclaimed Property to update sections governing the holding, disposal and auction notice requirements for unclaimed property, in order to reflect current legal requirements and City practices. Motion carried unanimously by roll call vote.

7. Proposed FY 2026/27 Operating Budget and FY2027-31 Five-Year Capital & Major Maintenance Program
Discuss the proposed FY2026/27 Operating Budget and FY2027–31 Capital Improvement and Major Maintenance Program (CIMMP), and provide direction to staff for any revisions prior to final adoption
Jessie Kim, Finance Director, presented the report.

There were no speakers regarding the item.

Discussion item only. No motion taken.

COUNCIL/STAFF REPORTS AND DIRECTIONS ON FUTURE AGENDA ITEMS ADJOURNMENT – The regular meeting adjourned at 10:35 p.m.

The meeting minutes were prepared by Melissa Thurman, City Clerk, for approval at the regular meeting on June 9, 2026.
_________________________________ __________________________________ Sally Meadows Melissa Thurman, MMC
Mayor City Clerk
The May 26, 2026, City Council meeting recording may be viewed via the following external website: https://www.youtube.com/@CityofLosAltosCA
The City of Los Altos does not own or operate YouTube. The video referenced in these minutes was live at the time the minutes were published.

City Council Staff Report
Meeting Date: June 9, 2026
Prepared By: Melissa Thurman
Approved By: Gabe Engeland
Subject: Adoption of Resolution - Calling for District Election

COUNCIL PRIORITY AREA
General Government

RECOMMENDATION
Adopt a Resolution calling for a General Municipal Election to be held on November 3, 2026 for two City Council seats, one in District 2 and one in District 4, and requesting the services of the County Registrar of Voters to conduct the election and consolidate it with the General Election

ENVIRONMENTAL IMPACT
This item does not constitute a project under the California Environmental Quality Act (CEQA) Guidelines.

FISCAL IMPACT
The approximated cost of conducting the election in partnership with the Santa Clara County Registrar of Voters is $100,000. The city expects to receive an invoice from the Registrar’s office after the election is finalized in early December.

Any staff time used for the election will fall under the expected activities and duties of the City Clerk’s Office.

PREVIOUS COUNCIL CONSIDERATION
On February 24, 2026, the City Council adopted a resolution calling for a special election to fill a Council vacancy. The vacant seat on the City Council is in District 2, which is scheduled for election on November 3, 2026.

BACKGROUND
In 2025, the City of Los Altos transitioned to district elections. The first two districts scheduled for election are Districts 2 and 4, for November 3, 2026.

ANALYSIS
N/A

DISCUSSION
Consolidating the Municipal Election with the General Election and requesting election services from the Santa Clara County Registrar of Voters aligns with past practices of the City of Los Altos and results in substantial cost savings for the City.

ATTACHMENTS

1. Attachment 1 - Resolution

Resolution No. 2024-24 Page 1
RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS

CALLING AND GIVING NOTICE OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 3, 2026 FOR THE ELECTION OF

CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE LAWS

OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES,

AND REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF

SANTA CLARA TO CONSOLIDATE SAID ELECTION PURSUANT TO
SECTION 10403 OF THE ELECTIONS CODE
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 3, 2026, for the election of Municipal Officers; and
WHEREAS, it is desirable that the General Municipal Election be consolidated with the General Election to be held on the same date and that within the City the precincts, voting centers and election officers of the two elections be the same, and that the Registrar of Voters of the County of Santa Clara canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election.

NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Los Altos as follows:

SECTION 1. That pursuant to the requirements of the Elections Code of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Los Altos, California on Tuesday, November 3, 2026, a General Municipal Election for the purpose of electing two Members of the City Council for the full term of four years (ending November 2030) for District 2 (one seat) and District 4 (one seat); and SECTION 2. That pursuant to the requirements of Section 10403 of the Elections Code, the Board of Supervisors of the County of Santa Clara is hereby requested to consent and agree to the consolidation of said election with the General Election on Tuesday, November 3, 2026, and
SECTION 3. That the Registrar of Voters is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election and only one form of ballot shall be used; and SECTION 4. That the City of Los Altos recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any costs; and
SECTION 5. That the City Clerk is authorized, instructed and directed to coordinate with the County of Santa Clara Registrar of Voters to procure and furnish any and all official

Resolution No. 2024-24 Page 2
ballots, notices, printed matter, and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election; and SECTION 6. That the ballots to be used at the election shall be in form and content as required by law. Voters shall vote for a maximum of three candidates; and SECTION 7. That candidates shall be permitted to submit a single Candidate Statement, with a maximum of 200 words, for inclusion in the Sample Ballot; and pursuant to Section 13307 of the Elections Code, the City Council hereby determines to levy against each candidate availing himself or herself of the service of including a candidate’s statement not to exceed two hundred (200) words in length in the voter’s pamphlet, the actual prorated costs of printing, handling and translating the candidate’s statement, if any, incurred by the City of Los Altos. Such estimated costs to be determined by the Registrar of Voters. The City Clerk shall provide written notice to such effect with each set of nomination papers issued.

SECTION 8. All active registered voters in District 2 and District 4 will automatically be mailed a Vote-by-Mail ballot package beginning on October 5, 2026; the Vote Centers for said election will be open starting on October 24, 2026, through November 3, 2026, for varying hours of operations. A list of Vote Centers hours of operation will be posted on the Santa Clara County Registrar Of Voters website at https://sccvote.sccgov.org/home. The Vote Centers will be open on Election Day, November 3, 2026.

SECTION 9. That the consolidated election shall be held and conducted in the manner prescribed in Section 10418 of the Elections Code of the State of California; and SECTION 10. That pursuant to Section 10551 and 15651 of the Elections Code of the State of California, the method of determining the winner or winners in the event of a tie vote shall be by coin flip.

SECTION 11. That the City Clerk is hereby directed to file a certified copy of this resolution with the Board of Supervisors and the Registrar of Voters of the County of Santa Clara.

SECTION 12. That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

I HEREBY CERTIFY that the foregoing is a true and correct copy of a Resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 9th day of June 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Resolution No. 2024-24 Page 3
___________________________
Sally Meadows, MAYOR
Attest:
_____________________________
Melissa Thurman, MMC
City Clerk

City Council Staff Report
Meeting Date: June 9, 2026
Prepared By: Saskia Lagergren
Approved By: Gabe Engeland
Subject: Adoption of Ordinance – Amend Chapter 2.24 Disposal of Unclaimed Property

COUNCIL PRIORITY AREA
Public Safety
General Government

RECOMMENDATION
Waive second reading and adopt the ordinance to amend Los Altos Municipal Code Chapter

2.24 Disposal of Unclaimed Property to update sections governing the holding, disposal and auction notice requirements for unclaimed property, in order to reflect current legal requirements and City practices

ENVIRONMENTAL IMPACT
Not Applicable

FISCAL IMPACT
Not applicable

PREVIOUS COUNCIL CONSIDERATION
Not Applicable

BACKGROUND
Los Altos Municipal Code Chapter 2.24 governs the Police Department’s handling of property and evidence, including procedures for the retention, notice and disposal of unclaimed property.

Several sections of this chapter have remained unchanged for extended periods of time and have become more restrictive than current state law requires or inconsistent with modern operational practices. As a result, compliance with these sections has created operational challenges for the Police Department without providing additional legal or public benefit. Staff is proposing limited, targeted amendments to clarify existing procedures, reduce unnecessary administrative burden and ensure the Municipal Code remains aligned with applicable state law.

ANALYSIS

DISCUSSION
Section 2.24.020 – Holding and Disposal of Unclaimed Property

Los Altos Municipal Code section 2.24.020 currently requires unclaimed property to be held for a minimum of six months before it may be deemed unclaimed and eligible for disposal.

However, California Civil Code section 2080.2 provides that owners have 90 days to claim property before it may be considered unclaimed. Holding property beyond that statutory period is not required by law and places a strain on the Police Department’s limited property storage capacity. Extended retention of unclaimed property has resulted in increased use of secure storage space, administrative inefficiencies and delays in lawful disposition of property.

Updating this section to align with state law would maintain compliance while reducing unnecessary logistical challenges for the Department.

Section 2.24.080 – Notice of Sale at Auction
Section 2.24.080 requires the Chief of Police to publish a notice of sale at auction at least twenty (20) days prior to the sale, specifying the time, place and items to be sold. While the Police Department does provide notice by publishing a list of property eligible for auction, current auction practices differ from the assumptions reflected in the Municipal Code. In practice:
• The City utilizes third-party auction vendors
• Auctions are scheduled and conducted by the vendor
• Property is released in batches when an auction opportunity becomes available • The Police Department does not control the exact time or location of the auction Requiring publication of a specific time and place of sale no longer reflects how auctions are conducted and is unnecessarily restrictive. Updating the code would allow notice requirements to reflect current, lawful practices while maintaining transparency and public awareness.

The proposed amendments would:
• Update retention timelines in Section 2.24.020 to align with state law • Clarify and modernize notice requirements in Section 2.24.080 • Ensure the Municipal Code accurately reflects how property and evidence are handled and auctioned today
• Preserve transparency and accountability while reducing administrative inefficiencies These amendments are administrative and clarifying in nature and do not represent a substantive change in policy. The proposed updates to Chapter 2.24 represent a common-sense, legally compliant update to the Municipal Code. Aligning the code with current state law and established practices will improve efficiency, reduce unnecessary administrative burden and maintain appropriate safeguards for the handling and disposal of unclaimed property.

ATTACHMENTS

1. Attachment 1 - Ordinance

Ordinance No. 2026- 1
ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS AMENDING TITLE 2 OF THE LOS ALTOS MUNICIPAL CODE SECTIONS

2.24.020 AND 2.24.080
WHEREAS, Los Altos Municipal Code, Chapter 2.24 Disposal of Unclaimed Property provides the chief of police with authority to receive found property; and WHEREAS, the chief of police holds such property, which shall be delivered to the true owner upon proof of ownership satisfactory to the chief of police; and; WHEREAS, unclaimed property may be used by the City or sold at auction; and; WHEREAS, adoption of updates to these procedures as set forth in this Ordinance, are necessary to enhance and safeguard public health, safety, general welfare and effectively administer the sale of unclaimed property pursuant to the California Civil Code; and; WHEREAS, the Ordinance amendments set forth below have been reviewed and considered by the City Council in accordance with the provisions of the California Environmental Quality Act of 1970, as amended (“CEQA”), and the guidelines promulgated thereunder and, further, said Council finds that it can be seen with certainty that there is no possibility that said amendments may have a significant effect on the environment and said amendments are therefore exempt from the requirements of the CEQA pursuant to the provisions of Section 15061(b)(3) of Division 6 of Title 14 of the California Code of Regulations.

NOW THEREFORE, the City Council of the City of Los Altos does hereby ordain as follows:

SECTION 1. Section 2.24.020 is amended to read as follows:
“Section 2.24.020 Holding and disposal of unclaimed property.

Such property shall be stored in a safe place and such money deposited with the finance director for a period of at least three months six months, unless sooner claimed by the true owner, and shall then be deemed to be unclaimed property or unclaimed money, subject to disposal as provided in this chapter.”
SECTION 2. Section 2.24.020 is amended to read as follows:

Section 2.24.080 Notice of sale at auction.
“The chief of police shall cause a notice of sale at auction to be published in a newspaper printed and circulated within the city at least twenty (20) five (5) days prior to the date of sale.

Such notice shall specify the time and place of sale and the particular items to be sold.” SECTION 3. CONSTITUTIONALITY. If any section, subsection, sentence, clause or phrase of this code is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this code.

SECTION 4. PUBLICATION. This Ordinance shall be published as provided in

Ordinance No. 2026- 2
Government Code section 36933.

SECTION 5. EFFECTIVE DATE. This Ordinance shall be effective upon the commencement of the thirty-first day following the adoption date.

The foregoing Ordinance was duly and properly introduced at a regular meeting of the City Council of the City of Los Altos held on May 26, 2026 and was thereafter, at a regular meeting held on June 9, 2026 passed and adopted by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________
Sally Meadows, MAYOR
Attest:
___________________________
Melissa Thurman, CITY CLERK

City Council Staff Report
Meeting Date: June 9, 2026
Prepared By: Irene Barragan
Approved By: Gabe Engeland
Subject: Receive Report - Los Altos Vacancies

COUNCIL PRIORITY AREA
General Government

RECOMMENDATION
Pursuant to Government Code section 3502.3, receive a report for informational purposes only, in compliance with Assembly Bill (AB) 2561, regarding the City’s workforce vacancies, recruitment efforts, and retention strategies

ENVIRONMENTAL IMPACT
Not Applicable.

FISCAL IMPACT
Not applicable.

PREVIOUS COUNCIL CONSIDERATION
Not Applicable.

BACKGROUND
On September 22, 2024, Governor Gavin Newsom signed Assembly Bill (AB) 2561 into law, amending the Meyers-Milias-Brown Act (MMBA). This legislation introduced Government Code Section 3502.3, which mandates that all public agencies present a report to their governing body at least once per fiscal year, prior to the adoption of the agency's annual budget, regarding workforce vacancies, recruitment efforts, and retention strategies.

The required report must include a report on:
• The status of current vacancy levels at the City of Los Altos. • Information on the City of Los Altos recruitment and retention efforts. • Identify any policies or practices that may impede hiring or retention efforts.

If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the recognized employee organization may request that additional information be included in the report as provided under Government Code section 3502.3.

The City recognizes three recognized bargaining units:
• Los Altos Peace Officers’ Association (POA)
• Los Altos Municipal Employees Association (LAMEA)
• Sanitary Truck Drivers and Helpers Teamsters Union Local 350

ANALYSIS
The City currently has 157 authorized full-time budgeted positions, with 12 vacant positions citywide, representing an overall vacancy rate of 7.6%. No single labor bargaining unit has a vacancy rate of 20% or higher among its authorized and budgeted positions.

Labor Bargaining Groups Number of
Vacant
Positions
Vacancy Rate
As of May 28,
2026
Los Altos Municipal Employee Association (LAMEA) 2 5.9% Sanitary Truck Drivers and Helpers Union Local 350
Teamsters Union Local 350
5 17.9%
Los Altos Peace Officers’ Association (POA) 1 2.3%
Non-Labor Groups Number
of
Vacant
Positions
Vacancy
Rate
As of
May 28,
2026
Unrepresented
Management and
Confidential
4 7.7%

DISCUSSION
In compliance with the new legal obligations under AB 2561, the City is required to do the following:

Requirements:

AB 2561 requires public agencies to present the status of their vacancies to the governing body at least once per fiscal year. The information must be made prior to the adoption of a final budget for the fiscal year. This report must also address the recruitment and retention efforts currently employed by the public agency. Agencies are also required to identify any changes to policies, procedures, or recruitment activities that negatively impact the agencies efforts to reduce its vacancies.

If the number of vacancies exceeds 20% of the total number of authorized full-time positions in a particular bargaining unit, the public agency shall include the following information upon request of the recognized employee organization:

1. The total number of job vacancies within a bargaining unit.

2. The total number of applicants for vacant positions within the bargaining unit.

3. The average number of days to complete the hiring process form when a position is posted.

4. Opportunities to improve compensation and other working conditions.

As of May 31, 2026, none of the City’s bargaining units have vacancy rates exceeding 20%, so this additional reporting is not required.

Current Recruitment and Retention Efforts
The Human Resources Department continues to implement strategies designed to attract qualified candidates in a highly competitive labor market.

Key Recruitment Initiatives
• Enhanced recruitment marketing for public safety positions through the City's partnership with Epic Recruiting.
• Development of dedicated recruitment websites and branding materials. • Increased social media outreach and targeted digital recruitment campaigns. • Professional photography, video content, and recruitment marketing materials to strengthen the City's employment brand.
• Streamlined recruitment processes and applicant experience improvements.

These efforts supported 31 recruitments and generated more than 3,000 applications during the reporting period.

Retention Strategies

The City continues to invest in employee retention through a comprehensive total compensation strategy focused on attracting and retaining talent, promoting employee engagement, supporting work-life integration, and maintaining competitive compensation. The City's Total Compensation Philosophy, adopted by the City Council in 2022, continues to serve as the framework for compensation and benefit decisions.

Recent retention enhancements include:
• Employee Wellness initiatives: Implementation of a City-paid parental leave program that provides employees with up to eight weeks of fully paid leave. • Career Growth and Education Reimbursement Programs: Providing employees with up to $20,000 in lifetime educational reimbursement.
• Employee Recognition Programs:

Ongoing initiatives include additional engagement events (held at different Department locations), quarterly citywide events, additional engagement events, peer-to-peer recognition programs, and year-round team-building activities.

The City also continues to monitor compensation competitiveness through periodic market analysis. Current total compensation data indicates that employee groups generally remain at or above established market targets, supporting the City's ongoing recruitment and retention objectives.

ATTACHMENTS

1. Attachment 1 - Presentation

City of Los Altos
Vacancies and Retention Efforts
Human Resources Department | June 9, 2026

Overview of AB 2561
• Legislature declared that high vacancy rates lead to:
o Heavier workloads
o Burnout/Increased turnover, and
o Negatively impacts service delivery
• Mandates:
o Annual presentation on vacancies, recruitment, and retention before formal budget adoption
o If vacancy rate in a bargaining unit is at or above 20%, more comprehensive reporting, upon request by the employee group 2

Workforce Information
City of Los Altos Bargaining Units
*Executives, managers, and some professional staff are unrepresented. 3 Employee Labor Bargaining Groups Classifications Represented Peace Officers' Association (POA) Police Sergeants, Police Officers, Dispatchers
Sanitary Truck Drivers and Helpers Union Local 350
(Teamsters)
Maintenance Classifications
Los Altos Municipal Employees Association (LAMEA) Professional, paraprofessional, technical, and clerical classifications

Citywide Vacancy Information
4

Citywide Vacancy Information
• Average % of Vacancies at the End of Each Month: 7.7% • Highest % of Vacancies at the End of a Month: 10.2%
• Lowest % of Vacancies at the End of a Month: 5.9%
5 May '25 Jun '25 Jul '25 Aug '25 Sept '25 Oct '25 Nov '25 Dec '25 Jan '26 Feb '26 Mar '26 Apr '26 May '26 # of Vacancies End
of the Month 12 11 12 9 11 10 12 13 16 12 13 12 12
# of Vacancies
Created 2 7 5 2 3 1 3 3 5 1 2 0 0
# of Vacancies Filled 1 8 3 5 1 2 2 1 2 5 1 1 0
# of Budgeted FTEs 151 151 153 153 153 153 153 153 157 157 157 157 157 % of Vacancies 7.9% 7.3% 7.8% 5.9% 7.2% 6.5% 7.8% 8.5% 10.2% 7.6% 8.3% 7.6% 7.6%

May 2025 – May 2026 Vacancy Data
6 Vacancy Reason # of Vacancies
Voluntary Separation 9
Internal Promotion 5
Newly Budgeted Position 9
Retirements or Transfers 12
Total 35

Labor Groups Vacancy Information
as of 2026
7 Labor Organization # of Budgeted
Positions # of Vacancies % of Vacancies by Group
LAMEA 34 2 5.9%
TEAMSTERS 28 5 17.9%
POA 43 1 2.3%
Non-Labor Agreements # of Budgeted
Positions # of Vacancies % of Vacancies by Group
UNREPRESENTED 52 4 7.7%
*AS OF MAY 28, 2026
Total # of Budgeted
Positions
Total # of Vacancies
Citywide
% of Vacancies
Citywide
157 12 7.6%

Addressing Vacancies in
City of Los Altos
8

Recruitment Process
9 Recruitment
Requisition Job Posting
Apply
Here!
Application
Screening
Conditional
Job Offer
Vacancy
Created
Pre-Employment
Process
Job
Placement
Candidate
Interviews &
Assessments

Recruitment: A Look Back
January 2025 – January 2026
10 31
Recruitments
3,076
Applications
Received
46 Vacancies Filled
• Average time to fill vacancies: 79 Days
• % of vacancies filled with internal candidates: 19%

Recruitment Initiatives
11 Public Safety Marketing and Recruiting
• Enhanced Marketing and Outreach for Public Safety positions • Dedicated recruitment website
• Curated social media posts
• Digital recruiting materials: photos, videos, branding City Paid Parental Leave
• 8 weeks of fully paid leave for new parents
Career Growth and Education Reimbursement
• Lifetime reimbursement of $20,000 for tuition/courses towards a degree.

Retention Efforts
12

Total Compensation Philosophy Re-Cap
13 Implemented and adopted a Total Compensation Philosophy to serve as guiding framework for how we reward our workforce, including:
• Attracting and Retaining Talent
• Fairness and Equitable Compensation
• Work Culture
• Employee Motivation and Engagement
Our goal is for this to not just be about numbers – it's about shaping a positive work culture and reinforcing City of Los Altos' commitment to its workforce. *Implemented and Adopted by Council in 2022

Effective Recruitment & Retention
Approaches
14 Competitive Salaries
Targeted Recruitment
Strategies
Flexible Work
Schedules
Employee
Recognition Programs
Work-Life Integration
Benefits
Benefits & Wellness

Enhanced Pay & Benefit Timeline Recap
15 Date Implemented Concept / Benefit
March 22, 2022 Total Compensation Philosophy
July 1, 2022 Management Leave Cashout
July 1, 2022 Quality of Life Reimbursement Benefit
Various Dates '22 – '25 Classification Market Adjustments October 10, 2022 Four Additional Holidays
(Farmworkers Day, Juneteenth, Indigenous Peoples' Day, X-Mas Eve) December 26, 2022 Year End Holiday Closure
January 1, 2023 Unrepresented 401(a) Match
January 1, 2026 City Paid Parental Leave (8 weeks)
January 1, 2026 Career Growth & Education Reimbursement (up to $20,000 Lifetime)

Questions
16

City Council Staff Report
Meeting Date: June 9, 2026
Prepared By: Manny Hernandez
Approved By: Gabe Engeland
Subject: Adoption of Resolution - Administration Building B Project Acceptance

COUNCIL PRIORITY AREA
General Government
Public Safety
Environmental Sustainability

RECOMMENDATION
Adopt a resolution accepting completion of the Los Altos Youth Center conversion to Admin Building B (CF-01044); authorize the Park & Recreation Director to record a Notice of Completion as required by law; and find the project categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 as the project is consisting of interior or exterior alterations involving such things as interior partitions, plumbing and electrical conveyances, with none of the exceptions in CEQA Guidelines Section 15300.2 applicable

ENVIRONMENTAL IMPACT
Acceptance of the completed work is categorically exempt under CEQA Guidelines Section 15301. The project does not involve an expansion of use, and none of the exceptions listed under CEQA Guidelines Section 15300.2 apply.

FISCAL IMPACT
The project is funded by the approved CF-01044 budget of $5,050,000 from the CIP Fund.

Given the awarded bid amount, available funding, and the management of contingency funds, the project is expected to close within budget. Project savings in fiscal year 2025/26 will be returned to the CIP Fund.

Admin Building B Project Financial Summary
Authorized
Contract
Authorized
Contingency
Authorized
Total
Actual Total

Construction $ 4,168,900.00 $4,586,152.14
Other Costs $ 255,765.00
$ 625,335.00 $5,050,000.00
$320,698.86
Project Total Cost $4,424,665.00 $625,335.00 $5,050,000.00 $4,906,851.00 Project Savings $143,149.00

PREVIOUS COUNCIL CONSIDERATION
On September 9, 2025, Council awarded a construction contract to Giant Construction, Inc. for Admin Building B Conversion, in the amount of $4,168,900.00.

BACKGROUND
Los Altos City Hall (Building A) does not have enough space to accommodate current administrative services, including the City Manager’s Office, Public Works Department, Development Services Department, Human Resources, IT, Finance Department, and City administrative staff. The City of Los Altos hired CO+ED Architecture in August 2022 to design a code-compliant office conversion for LAYC to relocate the City Manager’s Office, Human Resources, IT, Finance Department, and City administrative staff.

The project supports City goals to maintain excellent public service to the community by providing proper and effective work space for employees in an updated facility that includes more sustainable features.

ANALYSIS
The City Hall Expansion into Los Altos Youth Center Project converted the existing Los Altos Youth Center (LAYC) into additional office space for the City Manager’s Office, Human Resources, IT, Finance Department, and City administrative staff. The construction included:
• Architectural and structural remodel;
• Interior office reconfiguration;
• Electrical, plumbing, mechanical, lighting, and audio/visual system upgrades; • Electrical connection to the new emergency backup generator; • Communication connections to City Hall and Police Department; • Exterior patios and access paths;
• Site grading and storm drainage improvements;
• Associated underground utilities
Giant Construction, Inc. completed required construction work in accordance with the approved

plans and specifications. The project included expenditures to PG&E, Cal Water and contracted engineering corporation for required testing and inspections. No additional change orders beyond the authorized contingency were required.

DISCUSSION
The City Hall Expansion/Admin Building B (LAYC) project is now complete and ready for Council acceptance. Recording a Notice of Completion will begin the statutory retention release period.

ATTACHMENTS

1. Attachment 1 - Resolution

RESOLUTION NO. 2026-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS

ACCEPTING COMPLETION OF AND DIRECTING THE PARK & RECREATION

DIRECTOR TO FILE A NOTICE OF COMPLETION OF THE LOS ALTOS YOUTH CENTER /ADMIN BUILDING A EXPANSION PROJECT (CF-01044)
WHEREAS, the City of Los Altos and Giant Construction, Inc. entered into a construction contract on April 24, 2024, for Los Altos Youth Center Expansion Project; and WHEREAS, the work performed by Giant Construction, Inc. is satisfactory to the City Council and said work has been fully completed and done as provided in the contract, and the plans and specifications.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Los Altos does hereby finds and authorizes the following:

1. Accept completion of the Los Altos Youth Center Expansion project (CF-01044).

2. Direct the Park & Recreation Director to execute and file for record with the County Recorder of the County of Santa Clara a Notice of Completion, as required by law.

3. Confirm that acceptance of the work is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301, and that none of the circumstances in CEQA Guidelines Section 15300.2 apply.

I HEREBY CERTIFY that the foregoing is a true and correct copy of a resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 9th day of June 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
__________________________

SALLY MEADOWS
Mayor
ATTEST:
_________________________

MELISSA THURMAN, MMC
City Clerk

City Council Staff Report
Meeting Date: June 9, 2026
Prepared By: Harun Musaefendic
Approved By: Gabe Engeland
Subject:

Adopt a Resolution Authorizing Additional Signatories for the Department of Resources Recycling and Recovery (CalRecycle) Grant Programs

COUNCIL PRIORITY AREA
Environmental Sustainability
General Government

RECOMMENDATION
Authorize the City Manager, Assistant City Manager, City Engineer, Public Works Engineering Department Director, or their designee, to execute in the name of the City of Los Altos all CalRecycle grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds, and implement the approved grant project

ENVIRONMENTAL IMPACT
Categorically exempt from CEQA pursuant to Title 14 California Code of Regulations section 15308 as an action/project that will not have a significant impact on the environment and as an action taken by a regulatory agency for the protection of the environment, specifically, for the protection of the climate.

FISCAL IMPACT
No fiscal impact.

PREVIOUS COUNCIL CONSIDERATION
December 5, 2023

BACKGROUND
On December 5, 2023, City Council passed a resolution allowing the Director of Public Works, or their designee, to execute in the name of the City of Los Altos all CalRecycle grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds, and implement the approved grant project for five years from the date of adoption. CalRecycle staff cannot approve advance reconcile transactions until the Expenditure Request Certifications are signed by an Authorized Signature Authority.

ANALYSIS
Director of Public Works has retired since the City Council approved the resolution on December 5, 2023. The position of the Director of Public Works has not been filled since the retirement of the previous director, and no additional staff were approved as their designee.

Public Works Department name has changed since to Public Works Engineering Department, and the Director position has been added. CalRecycle staff cannot approve advance reconcile transactions until the Expenditure Request Certifications are signed by an Authorized Signature Authority.

DISCUSSION
Staff requests to expand the signatories to include the City Manager, Assistant City Manager, City Engineer, Public Works Engineering Department Director, or their designee, to execute in the name of the City of Los Altos all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project. Authorized Signature Authority given to multiple positions will allow staff to process Expenditure Request Certifications in a timely manner and will prevent delays in grant funds release.

ATTACHMENTS

1. Attachment 1 - Resolution

2. Attachment 2 - Resolution No. 2023-71

Resolution No. 2026- Page 1
ATTACHMENT 1
RESOLUTION NO. 2026-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS

AUTHORIZING SUBMITTAL OF INDIVIDUAL GRANT APPLICATIONS FOR

ALL GRANT PROGRAMS FOR WHICH THE CITY OF LOS ALTOS IS

ELIGIBLE
WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and
WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and
WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Los Altos hereby authorizes the submittal of applications to CalRecycle for all grants for which the City of Los Altos is eligible; and
BE IT FURTHER RESOLVED that the City Manager, Assistant City Manager, City Engineer, Public Works Director, or their designee, is hereby authorized and empowered to execute in the name of the City of Los Altos all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and BE IT FURTHER RESOLVED that these authorizations are effective for five years from the date of adoption.

I HEREBY CERTIFY that the foregoing is a true and correct copy of a Resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Resolution No. 2026- Page 2
ATTACHMENT 1
___________________________
Sally Meadows, MAYOR
Attest:
_____________________________
Melissa Thurman, MMC, CITY CLERK

City Council Staff Report
Meeting Date: June 9, 2026
Prepared By: Melissa Thurman
Approved By: Gabe Engeland
Subject: Adoption of Resolution - SB707 Disruption Policy

COUNCIL PRIORITY AREA
General Government

RECOMMENDATION
Adopt a Resolution approving the Senate Bill 707 (SB707) Disruption Policy and Approve the use of Zoom Technologies for Remote Public Participation

ENVIRONMENTAL IMPACT
N/A

FISCAL IMPACT
While there is no immediate fiscal impact associated with receiving this report, future costs may be incurred to comply with the remote participation requirements in SB707, including potential upgrades or changes to technology, software, and equipment.

PREVIOUS COUNCIL CONSIDERATION
February 10, 2026

BACKGROUND
During the February 10, 2026 City Council meeting, staff presented an informational report regarding Senate Bill 707 (SB707) and its impact on remote public participation requirements under the Ralph M. Brown Act, including the July 1, 2026 implementation timeline. The report outlined anticipated operational considerations and the need to reinstate remote public comment for City meetings by July 1, 2026.

Following the release of that report, staff attended a discussion and training session hosted by the League of California Cities (CalCities) on April 13, 2026, during which additional implementation guidance and clarification were provided regarding the term “eligible legislative body,” including which bodies within a local agency are subject to the remote public participation requirements established under SB 707. A flyer for that training session is included with this report as Attachment 2.

ANALYSIS
SB707 requires local agencies to provide members of the public with the opportunity to participate remotely and to offer them the opportunity to provide comments remotely during meetings. This requirement, however, applies specifically to an "eligible legislative body." As amended by SB707, Government Code Section 54953 requires that an "eligible legislative body" provide a means for the public to remotely hear, visually observe, and address the body in real time.

Under Government Code Section 54953 and SB707, an "eligible legislative body" is defined as:
• The governing body of a local agency; and
• Certain legislative bodies with statewide jurisdiction (not applicable to the City of Los Altos)
During the April 13, 2026 CalCities training session, additional clarification was provided that, for purposes of SB707 implementation, the City Council is the eligible legislative body for the City of Los Altos. The guidance further clarified that the definition does not extend to subordinate advisory bodies, such as commissions, committees, or other advisory bodies established by the City Council, as was previously believed when the February informational report was drafted. Accordingly, while these bodies remain subject to the Brown Act, they are not required under SB707 to provide remote public comment.

DISCUSSION
Pursuant to SB707:
a) All open and public meetings shall include an opportunity for members of the public to attend via a two-way telephonic service or a two-way audiovisual platform, except if adequate telephonic or internet service is not operational at the meeting location. If adequate telephonic or internet service is operational at the meeting location during only a portion of the meeting, the legislative body shall include an opportunity for members of the public to attend via a twoway telephonic service or a two-way audiovisual platform during that portion of the meeting.

The City of Los Altos currently utilizes Zoom technology for remote meeting observation and internal meeting management. Although the City previously discontinued remote public comment via Zoom, the platform continues to allow members of the public to access meetings via the Zoom link published on meeting agendas for viewing and listening. Zoom also provides telephonic access, allowing members of the public to listen to meetings and provide public comment by phone.

Currently, city staff plans to meet the requirements of SB 707 by allowing public comment via Zoom. Allowing comments via Zoom is often easier than via telephone because of the built-in tools that help organize and manage comments more efficiently and reduce interruptions. In contrast, telephone calls can become confusing if multiple people try to speak at once. Staff conducted an informal review of other cities to determine whether they allow comments via telephone or an audio/visual platform. Only one agency responded that they receive comments by telephone, and they reported a number of issues, including feedback from speakers and

difficulty hearing the speaker through broadcast channels. That agency will be switching to Zoom for remote public comments by the July 1st SB707 deadline.

The City of Los Altos currently provides multiple methods by which members of the public may participate in City Council meetings and provide public comment. In addition to traditional inperson participation, members of the public may submit written comments prior to a meeting and, beginning July 1, 2026, may also participate remotely in accordance with the requirements of SB707. The methods for participation are listed below:

Written Public Comment (Email or Mail)
Members of the public may submit written comments by
emailing [email protected] prior to the meeting or by mailing a letter to the City Clerk’s Office. Written comments received prior to the agenda publication deadline will be included with the corresponding agenda packet. Written comments received after agenda publication will be distributed to the City Council and made available to the public in accordance with the City’s established procedures.

In-Person Public Comment
Members of the public may provide verbal comments by attending a City Council meeting in person, completing a speaker card, and addressing the City Council when the agenda item they wish to speak on is called for public comment.

Remote Public Comment (Zoom)
Beginning July 1, 2026, members of the public may participate remotely through the City’s Zoom meeting platform. Individuals wishing to address the City Council remotely must join the meeting using the Zoom link provided on the agenda, register to enter the meeting, and utilize the "Raise Hand" feature when the agenda item is called for public comment. Speakers will be recognized by the City Clerk or their designee and provided an opportunity to address the City Council in real time.

Telephonic Public Comment
Beginning July 1, 2026, members of the public may participate by telephone using the phone number listed on the meeting agenda. Individuals who call into the meeting and wish to speak on an agenda item may press *9 to raise their hand and request to speak when the item is called for public comment. The City Clerk or their designee will recognize telephone participants and provide an opportunity for them to address the City Council in real time.

To facilitate the orderly conduct of meetings, speakers will generally be called in the following order:

1. In-person speakers;

2. Remote speakers participating through Zoom; and

3. Telephonic speakers.

The Mayor retains the discretion to modify the order of speakers as necessary to ensure the efficient administration of the meeting.

As the use of outside software and technology poses a risk of potential outages and other issues beyond staff control, SB707 also requires eligible legislative bodies to adopt a written policy regarding the disruption of telephonic or internet services during a public meeting. This policy must address the following requirements:
• Recessing the Meeting - In the event of a disruption to telephone or internet services/software, the body must recess the meeting for at least one hour in an attempt to restore service.
• Good Faith Effort - The policy must outline the steps staff or the legislative body will take to attempt to restore service.
• Reconvening - The policy must detail procedures for reconvening the meeting if a disruption is resolved, and for continuing or canceling the meeting if the disruption cannot be resolved after one hour has passed.

Attachment 1 of this report is the proposed Disruption Policy Resolution, which will satisfy the requirement of addressing the disruption of telephonic or internet services during a public meeting.

ATTACHMENTS

1. Attachment 1 - Resolution

2. Attachment 2 - CalCities SB707 Flyer

Resolution No. 2026-
RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS

ADOPTING A POLICY ADDRESSING DISRUPTION OF TELEPHONIC OR

INTERNET SERVICE DURING PUBLIC MEETINGS, IN ACCORDANCE WITH SENATE BILL 707 (SB707)
WHEREAS, the Ralph M. Brown Act (Government Code § 54950 et seq.) establishes requirements for open and public meetings of local legislative bodies; and WHEREAS, Senate Bill 707 (2025) amended the Brown Act to update teleconferencing and accessibility requirements, including provisions related to remote participation in public meetings; and
WHEREAS, Government Code § 54953.4(b)(1)(A) requires eligible legislative bodies, on or before July 1, 2026, to adopt at a noticed public meeting in open session, and not on the consent calendar, a policy addressing disruption of telephonic or internet service during meetings conducted with remote participation; and
WHEREAS, the required policy must address procedures for recessing and reconvening a meeting in the event of a disruption and the efforts the legislative body will make to attempt to restore service; and
WHEREAS, Government Code § 54953.4 further requires that, in the event of a disruption preventing members of the public from observing or participating in the meeting through a twoway telephonic or audiovisual platform, the legislative body shall recess the open session for at least one hour and make a good faith effort to restore service, and may not reconvene open session until at least one hour has passed or service has been restored, whichever occurs first; and WHEREAS, if telephonic or internet service has not been restored upon reconvening, the legislative body must make findings by roll call vote that good faith efforts to restore service have been made and that the public interest in continuing the meeting outweighs the public interest in remote public access; and
WHEREAS, adoption of a technology disruption policy is required to ensure compliance with state law and to promote transparency and continuity of public meetings; and WHEREAS, the proposed policy addressing disruption of telephonic or internet service during meetings of the City of Los Altos has been prepared in accordance with Government Code § 54953.4 and is attached hereto as Exhibit 1; and
WHEREAS, the activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.

Resolution No. 2026-
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Los Altos as follows:

Section 1. Adoption of Policy. The City of Los Altos hereby adopts the policy entitled “Disruption of Telephonic or Internet Service During Public Meetings,” substantially in the form attached hereto as Exhibit 1.

Section 2. Implementation. The City Clerk and/or City Attorney is authorized and directed to implement the policy in coordination with agency staff, legal counsel, and technology support staff, as appropriate.

Section 3. Minor Modifications. The City Clerk and/or City Attorney may approve minor, nonsubstantive modifications to the policy as necessary to conform to applicable law, agency practices, or formatting requirements, provided such modifications do not materially alter the intent of the policy.

I HEREBY CERTIFY that the foregoing is a true and correct copy of a resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 9th day of June, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
__________________________
Sally Meadows
Mayor
ATTEST:
_________________________
Melissa Thurman, MMC
City Clerk

City of Los Altos
1 North San Antonio Road
Los Altos, California 94022-3087

DISRUPTION POLICY OF TELEPHONIC OR INTERNET SERVICE

DURING PUBLIC MEETINGS

1. BACKGROUND
Senate Bill 707 (SB707) (2025), amended the Brown Act to require eligible legislative bodies to adopt, on or before July 1, 2026, a policy addressing how the agency will respond to disruptions in telephonic or internet service that prevent members of the public from attending or observing a meeting remotely. This policy is adopted to comply with that requirement and to ensure continuity of public participation during technical disruptions.

2. PURPOSE
This policy establishes procedures for responding to a disruption in the telephonic or internet services that provide two-way remote public access to meetings of the City of Los Altos, as required by the Brown Act (Government Code §54953.4). The policy ensures transparency, public participation, and continuity of government during technology disruptions.

3. DEFINITIONS
For purposes of this policy:
• “Disruption” means any failure, outage, or other interruption that prevents members of the public from attending or observing the meeting via the available remote access services utilized by the City of Los Altos.
• “Remote access services” means the two-way telephonic service and/or two-way audiovisual platform used to provide real-time remote public attendance and observation of meetings.

4. APPLICABILITY
This policy applies to all open and public meetings of the City Council of the City of Los Altos, at which remote public participation is offered or required under the Brown Act.

5. PROCEDURES IN THE EVENT OF A DISRUPTION OF SERVICE

5.1 RESPONSE TO SERVICE DISRUPTION
If the City Clerk, or the party responsible for managing technology providing remote public participation, becomes aware of a disruption to the agency’s remote access services that prevents members of the public from attending or observing the meeting remotely:

1. The City Clerk shall make the Mayor aware of the disruption.

2. The Mayor shall announce the disruption in service to the public.

DISRUPTION OF TELEPHONIC OR INTERNET SERVICE

DURING PUBLIC MEETINGS
1 North San Antonio Road
Los Altos, California 94022-3087

3. The Mayor may then call for a recess of the open session, or convene the legislative body in closed session, consistent with the Brown Act.

4. Staff shall begin a diligent effort to diagnose and restore the disrupted service.

5. The meeting shall remain in recess for at least one hour or until service is restored, whichever is sooner. The recess period may be extended if restoration efforts are ongoing.

5.2 EFFORTS TO RESTORE SERVICE
The agency shall make good faith efforts to restore remote access services, which may include:
• Troubleshooting platform or teleconferencing software • Resetting or replacing audiovisual equipment, if applicable • Contacting necessary support staff, such as IT, or other service providers or vendors for additional help
The City Clerk shall document the restoration efforts undertaken, including the time of the recess, the attempts at reconnection, and the end time of the recess.

6. RECONVENING THE OPEN SESSION

6.1 TIMING
The open session may be reconvened after at least one hour has elapsed from the time of the initial disruption, or as soon as service is restored, whichever occurs earlier.

6.2 IF SERVICE IS RESTORED
If the remote access service is restored before or at the time the meeting reconvenes, the meeting shall continue as normal.

6.3 IF SERVICE IS NOT RESTORED
If service has not been restored after one hour of recess, the City Council may reconvene and:

1. Adjourn the meeting; or

2. Continue the meeting in open session by adopting, by roll call vote only, the following, or a substantially similar finding:
“Staff of the City of Los Altos has made good faith efforts to restore telephonic or internet service in accordance with its adopted policy, and the public interest in continuing the meeting outweighs the public interest in remote public access.”

DISRUPTION OF TELEPHONIC OR INTERNET SERVICE

DURING PUBLIC MEETINGS
1 North San Antonio Road
Los Altos, California 94022-3087
Upon adoption of the finding, the legislative body may continue the open session even if remote access has not been restored.

7. REVIEW AND UPDATES
The City Council of the City of Los Altos may amend this policy at a noticed public meeting, but may not adopt it as a routine item on the Consent Calendar.

City Council Staff Report
Meeting Date: June 9, 2026
Prepared By: Jane Hou
Approved By: Gabe Engeland
Subject:

Adoption of Resolution - Report of Sewer Service Charges

COUNCIL PRIORITY AREA
Environmental Sustainability
General Government

RECOMMENDATION
Adopt a Resolution approving the Report of Sewer Service Charges for the Fiscal Year 2026/27 and directing the Filing of Charges for Collection by the County Tax Collector

ENVIRONMENTAL IMPACT
The adoption of the proposed resolution is statutorily exempt from review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15273 (Rates, Fares, Tolls, and Charges), in that the proposed action involves setting and collecting sewer rates that will be used in the ongoing operation and maintenance of existing sewer infrastructure or to fund capital projects within an existing service area.

FISCAL IMPACT
There is no fiscal impact on the City’s General Fund. The annual sewer service charge of $13,905,142.92 will be included in the FY2026/27 Sewer Fund revenue budget.

PREVIOUS COUNCIL CONSIDERATION
February 28, 2023, June 13, 2023, June 11, 2024 and June 10, 2025.

BACKGROUND
Los Altos Municipal Code Chapter 10.12 authorizes the City to impose sewer service charges to fund costs associated with the City’s sanitary sewer system. The City Council passed Ordinance No. 2023-494 in June 2023, establishing sewer rates to be applied for the five-year period beginning FY 2023/24 and ending in FY 2027/28.

ANALYSIS
In accordance with Municipal Code sections 10.12.135 and 10.12.140 and Ordinance No. 2023- 494, the rate structure for the sewer service charges is comprised of two components: (1) a fixed

annual per parcel base charge that is determined based on the number of equivalent dwelling units (“EDU”) assigned to a property: and (2) a variable quantity charge. One EDU equates to the quantity of wastewater an average single-family residential customer discharges to the sewer system. One EDU is assigned to each single-family residential home. The number of EDUs assigned to other customers is based on their expected wastewater flows relative to an average single-family residential customer. The quantity charge is imposed on a per-unit basis, with one unit equal to one hundred cubic feet, or 745 gallons, of metered water use. The total amount of the quantity charge is based on a customer’s average winter water use from the prior year (using the three wettest months of the prior year) multiplied by 12 and is designed to reflect a customer’s estimated wastewater flow. Estimated average winter water usage best reflects actual flows into the sewer system because outdoor water use is least likely to occur.

For FY 2026/27, the adopted rates under the five-year rate schedule are:

Base Charge: $517.83 per EDU
Usage Charge: $5.03 per unit of estimated sewer use (one unit equals 100 cubic feet, or 745 gallons)The City’s Sewer Service Charges are imposed pursuant to California Health and Safety Code section 5471 et. Seq. Section 5471 previously required that charges adopted in accordance therewith be adopted by an ordinance approved by two-thirds of the members of the City Council. Ordinance 2023-494 amended the Municipal Code Section 10.12.130 to allow future Sewer Service Charges to be adopted by a resolution in accordance with the provisions of the amended Health and Safety Code section 5471,which permits approval by a majority vote of the City Council rather than the previous two-thirds requirement.

DISCUSSION
In order to levy sewer service charges on property bills for FY 2026/27, the Council must hold a hearing on the report of charges to be submitted to the County for collection for the fiscal year.

That report, prepared by NBS, is on file with the City Clerk, and the body of the report (excluding the parcel list) is included here as Attachment 2. Following the hearing, the Council may adopt a resolution and direct the Filing of Charges for Collection by the County Tax Collector.

ATTACHMENTS

1. Attachment 1 - Sewer Service Charge Annual Report

2. Attachment 2 - Resolution

Fiscal Year 2026/27 Annual Report For:

Sewer Service Charge
June 2026

CITY OF LOS ALTOS

SEWER SERVICE CHARGE
Los Altos City Hall
1 North San Antonio Road
Los Altos, CA 94022
Phone - (650) 947-2700

CITY COUNCIL
Sally Meadows, Mayor
Larry Lang, Vice Mayor
Pete Dailey, Councilmember
Jonathan Weinberg, Councilmember

CITY STAFF
Gabriel Engeland, City Manager
Jane Hou, Senior Civil Engineer
Harun Musaefendic, Associate Civil Engineer
NBS
Adina McCargo, Project Manager
Kristin Harvey, Administrator

TABLE OF CONTENTS

1. INTRODUCTION ..............................................................................................................1

2. SEWER SERVICE CHARGE CALCULATION ..........................................................................2

2.1 Base Charge (Per EDU) ..................................................................................................2

2.2 Usage Charge (Per Unit of Estimated Sewer Use).........................................................2

3. SEWER SERVICE CHARGE RATES ......................................................................................3

4. WET SEASON MONTHS ...................................................................................................4

5. SUMMARY OF LAND USE CLASSIFICATIONS.....................................................................5

6. TOTAL ANNUAL CHARGES ...............................................................................................6

7. LISTING OF SEWER SERVICE CHARGES .............................................................................7

8. RESOLUTION...................................................................................................................8

City of Los Altos
Fiscal Year 2026/27 Annual Report – Sewer Service Charge 1

1. INTRODUCTION
The City of Los Altos (the “City”) imposes a Sewer Service Charge to fund costs associated with the City’s sanitary sewer system in accordance with its Municipal Code Chapter 10.12. The City restructured the Sewer Service Charge in July 2013 to ensure a flow-of-funds for the on-going operation and maintenance, and to fund the upgrading and refurbishing of the City’s sanitary sewer system. The main objectives for updating the rate structure were to ensure a fair and equitable charge to all sewer users and to stabilize the charges to provide needed revenue.

A study was completed in February 2018 to support increased rates beginning July 1, 2018 and ending June 30, 2023. The City Council adopted an Ordinance in July 2018 establishing the Sewer Service Charge to be applied to each of the succeeding five fiscal years.

A study was completed in January 2023 to support increased rates beginning July 1, 2023 and ending June 30, 2028. The City Council reviewed and adopted an Ordinance in June 2023 establishing the Sewer Service Charge to be applied to each of the succeeding five fiscal years, which is comprised of a base charge per equivalent dwelling unit, plus a usage charge per estimated sewer unit. The adopted rate structure is designed to reduce volatility in the City’s sewer revenue stream and equitably allocate costs to each customer class of sewer use.

The Sewer Service Charge is levied pursuant to the California Health and Safety Code, Sections 5471 et seq. and the City’s Municipal Code Chapter 10.12. Payment of the Sewer Service Charge for each parcel will be made in the same manner and at the same time as payments are made for property taxes. This report contains the necessary data required to establish the Sewer Service Charge and is submitted for filing in the office of the City Clerk, where it shall remain open for public inspection.

City of Los Altos
Fiscal Year 2026/27 Annual Report – Sewer Service Charge 2

2. SEWER SERVICE CHARGE CALCULATION
The total annual Sewer Service Charge for a parcel will be the sum of the base charge plus the usage charge. The calculation for each charge is described in this section and detailed in the City’s Municipal Code Chapter 10.12.

2.1 Base Charge (Per EDU)
The base charge is determined by multiplying the per equivalent dwelling unit (EDU) rate by the number of EDUs on each parcel. For residential parcels, 1.0 EDU is assigned for each dwelling unit (multi-family residential parcels included).

Parcels with non-residential structures or improvements shall also be assigned 1.0 EDU for the first 110 water units (or fraction thereof) of estimated sewer use for non-residential improvements on the parcel plus a number of additional EDUs (or fractions thereof) equal to the remaining estimated sewer use for non-residential improvements on the parcel divided by 110. A minimum of 1.0 EDU is assigned to each non-residential parcel or group of parcels associated with a shared meter.

Where multiple non-residential parcels share a common water meter, the equivalent dwelling units calculated based on water use measured by that meter shall be divided equally amongst the parcels sharing the meter.

2.2 Usage Charge (Per Unit of Estimated Sewer Use)
The usage charge is based on water consumption data provided by the California Water Service Company for the previous year. The three monthly billing periods which indicate the lowest total water consumption are selected as the wet season months in that they represent a reasonable approximation of the amount of sewer usage. Water usage from the wet season months is averaged and multiplied by 12 to calculate estimated annual sewer usage. One unit is equal to 100 cubic feet of sewer use.

Where actual monthly water consumption data is not available for a water account on a parcel (as when a structure(s) on the parcel is recently connected to a water system), sewer use is estimated as the average estimated sewer use for the prior year of all parcels in the same land use. For purposes of this section, land uses are classified as follows:
• Single-Family Home
• Condominium Unit
• Multi-Family Residence (two dwelling units)
• Multi-Family Residence (three to four dwelling units) • Multi-Family Residence (five or more dwelling units)
• Church
• Commercial/Industrial
• Institutional
• Park
• School
• Government

City of Los Altos
Fiscal Year 2026/27 Annual Report – Sewer Service Charge 3

3. SEWER SERVICE CHARGE RATES
To provide the revenue to keep up with the increase in projected revenue needs, the City is in the process of adopting an updated five-year rate structure based on a rate study completed in January 2023. Both the base charge and the usage charge per sewer unit will be increased annually each year. One unit is equal to 100 cubic feet of sewer use. The following table shows the proposed rates through Fiscal Year 2027/28 based on the rate study.

Adopted five-year Rates FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Per EDU (Base Charge) $340.49 $391.56 $450.29 $517.83 $595.50 Per Unit of Estimated Sewer
Use (Usage Charge) $3.30 $3.80 $4.37 $5.03 $5.78
Percentage Increase over
Prior Fiscal Year 15.0% 15.0% 15.0% 15.0% 15.0%

City of Los Altos
Fiscal Year 2026/27 Annual Report – Sewer Service Charge 4

4. WET SEASON MONTHS
The “wet season months” are the three monthly billing periods for which the records of the California Water Service Company indicate the lowest total water consumption during that calendar year by parcels connected to the City’s sewer system that are serviced by the California Water Service Company.

In 2025, the City’s three lowest months for water use were January, February, and March. Therefore, these are the months used to calculate each individual parcel’s estimated annual sewer usage for Fiscal Year 2026/27.

The following table provides the total annual water usage for calendar year 2025, as provided by the California Water Service Company.

Calendar Year 2025 Total Water Consumption (Units1) - City of Los Altos (2)

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
138,918 133,556 128,870 170,565 228,594 316,686 308,562 325,632 306,992 260,095 205,326 156,495 (1) One unit = 100 cubic feet of sewer use.
(2) Data provided by the California Water Service Company for the City of Los Altos and certain parcels located within the Town of Los Altos Hills and unincorporated areas of the Santa Clara County that are connected to the City’s sewer system.

City of Los Altos
Fiscal Year 2026/27 Annual Report – Sewer Service Charge 5

5. SUMMARY OF LAND USE CLASSIFICATIONS
The following summarizes the estimated annual sewer usage for properties that are connected to the City’s sewer system for Fiscal Year 2026/27.

Land Use Classification
Number of
Parcels (1)
Total Estimated
Yearly Sewer Use
(in Units) (1)
Average Sewer
Use Per Parcel (2)
Single-Family Home 10,390 1,093,301 105
Condominium Unit 1,104 54,898 50
Multi-Family Residence (two units) 65 7,396 114
Multi-Family Residence (three to four dwelling units) 11 1,868 170 Multi-Family Residence (five or more dwelling units) 60 21,898 365 Church 22 10,860 494
Commercial/Industrial 456 87,941 193
Institutional 3 32,412 10,804
Park 4 2,896 724
School 10 11,904 1,190
Government 11 7,276 661
Vacant 1 0 0
(1) Usage data includes all parcels in the City of Los Altos and in unincorporated Santa Clara County served by the City of Los Altos’s sewer program. The City’s program uses capacity and facilities provided to the program by the City of Mountain View to serve some parcels in the City of Los Altos. These parcels are charged a Sewer Service Charge by the City of Los Altos, and data for these parcels is included in the above table. The City of Los Altos compensates the City of Mountain View for access to the Mountain View sewer system by providing the Mountain View’s sewer program with access to a similar volume of service from the Los Altos system. Parcels located in Mountain View, but connected to the City’s sewer system, are receiving service from the Mountain View sewer program and are not included in the above table or subject to City’s Sewer Service Charge.

Additionally, the City of Los Altos sells sewer services, in bulk, to the Town of Los Altos Hills, and the Town uses these services to serve parcels located in Los Altos Hills. Usage by parcels in Los Altos Hills is not shown in the above table because these parcels are not subject to the Sewer Service Charge. Instead, the full cost of the services indirectly provided by the Town of Los Altos Hills parcels is covered by the direct payment to the City from the Town of Los Altos Hills. Costs of these services are not spread to parcels directly served by the City of Los Altos sewer program. (2) Average consumption based upon parcels where actual usage data was available. Developed properties that are connected to the City’s sewer system, which water consumption information is not available, are charged at the average sewer use per parcel identified above.

City of Los Altos
Fiscal Year 2026/27 Annual Report – Sewer Service Charge 6

6. TOTAL ANNUAL CHARGES
The following summarizes the total Sewer Service Charges to be levied in Fiscal Year 2026/27, as compared to the total charges in the prior two years.

Description Fiscal Year 2026/27 Fiscal Year 2025/26 Fiscal Year 2024/25 Total Sewer Service
Charges $13,905,142.92 $11,250,724.94 $9,600,873.73
Number of parcels 12,137 12,102 12,058

City of Los Altos
Fiscal Year 2026/27 Annual Report – Sewer Service Charge 7

7. LISTING OF SEWER SERVICE CHARGES
Santa Clara County Assessor’s (the “Assessor”) parcel identification, for each lot or parcel subject to the Sewer Service Charge, shall be based on the Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference.

A listing of Assessor’s parcels subject to the Sewer Service Charge for Fiscal Year 2026/27, along with the charge amounts, is on file in the office of the City Clerk and incorporated herein by reference. Based on Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new Assessor’s parcels, will be submitted and/or resubmitted to the Santa Clara County Auditor/Controller. The annual charge amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the City’s Municipal Code Chapter 10.12 and charge rate approved in this report. Therefore, if a single Assessor’s parcel has a status change in development, other land use change, or subdivides into multiple Assessor’s parcels, the charge amounts applied to each of the new Assessor’s parcels shall be recalculated and applied according to the approved method outlined in the City’s Municipal Code Chapter 10.12 and charge rate rather than a proportionate share of the original charge amount.

City of Los Altos
Fiscal Year 2026/27 Annual Report – Sewer Service Charge 8

8. RESOLUTION
The following page presents the Resolution approving the report of Sewer Service Charges for Fiscal Year 2026/27 and directing the filing of charges for collection by the Santa Clara County Tax Collector.

ATTACHMENT 2
RESOLUTION NO. 2026-__

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ALTOS

APPROVING THE REPORT OF SEWER SERVICE CHARGE FOR FISCAL YEAR 2026/2027 AND DIRECTING THE FILING OF CHARGES FOR COLLECTION BY

THE COUNTY TAX COLLECTOR
WHEREAS, PURSUANT TO Chapter 10.12 of Los Altos Municipal Code, the City of Los Altos imposes Sewer Service Charges upon parcels connected to the sewer system; and WHEREAS, pursuant to section 5473 of the California Health and Safety Code, the City Council has elected to annually collect the Sewer Service Charges on the property tax roll; and WHEREAS, the Public Works Engineering Director has caused to be prepared a report (the “Report”) containing a description of each parcel of real property subject to the Sewer Service Charges and the amount of the Sewer Service Charges to be imposed on each such parcel for Fiscal Year 2026/27, computed in conformity with the rates prescribed by Ordinance of this City Council, which report is filed with the City Clerk, available for public inspection, and incorporated herein by reference; and
WHEREAS, on June 9, 2026, following publication of notice as required by law in the Town Crier on May 6 and May 13, 2026, the City Council held a full and fair public hearing with respect to the Report, and at such hearing the City Council heard and considered all protest and objections to the Report; and
WHEREAS, the City Council desires to approve the Report and to submit the Sewer Service Charges described therein to the Santa Clara County Tax Collector for collection on the Fiscal Year 2026/27 tax roll.

NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Los Altos does hereby authorizes that:

1. The City Council hereby overrules all protests and objections to the Report on the Sewer Service Charges and confirms and approves the Report and the Sewer Service Charges to be imposed on each parcel within the City subject to such charges as submitted; and

2. The City Clerk is instructed and authorized to transmit the Report to the Santa Clara County Tax Collector and to file the necessary documents with the Tax Collector that the Sewer Service Charges set forth in the Report will be included on the Santa Clara County Tax Roll for Fiscal Year 2026/27.

ATTACHMENT 2
I HEREBY CERTIFY that the foregoing is a true and correct copy of a resolution passed and adopted by the City Council of the City of Los Altos at a meeting thereof on the 9th day of June, 2026 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
__________________________
Sally Meadows, Mayor
ATTEST:
_____________________________
Melissa Thurman MMC, City Clerk

City Council Staff Report
Meeting Date: June 9, 2026
Prepared By: Jessie Kim
Approved By: Gabe Engeland
Subject: Proposed FY2026/27 Operating Budget and FY2027-FY2031 Five-Year Capital & Major Maintenance Program

COUNCIL PRIORITY AREA
Public Safety
Business Communities
Circulation Safety and Efficiency
Environmental Sustainability
Housing
General Government

RECOMMENDATION
Staff recommends the City Council adopt the following items:

1. City of Los Altos Resolution - Establishing the FY2026/27 Appropriations Limit

2. City of Los Altos Resolution - Adopting the FY2026/27 Fee Schedule

3. City of Los Altos Resolution - Approving the FY2026/27 Salary Schedule

4. City of Los Altos Resolution - Reaffirming the FY2026/27 Utility Users Tax rate

5. City of Los Altos Resolution - Reaffirming the FY2026/27 Transient Occupancy Tax rate

6. City of Los Altos Resolution - Authorizing the Park Impact Fee

7. City of Los Altos Resolution - Adopting the FY2026/27 Operating Budget

8. City of Los Altos Resolution - Adopting the FY2027-FY2031 Five-Year Capital Improvement and Major Maintenance Program (CIMMP)

9. City of Los Altos Resolution - Receiving and filing the FY2023/24 Development Impact Fee Annual Report

10. City of Los Altos Resolution - Receiving and filing the FY2024/25 Development Impact Fee Annual Report

11. City of Los Altos Resolution - Adopting Five-Year Findings for the Park Impact Fee Fund

12. City of Los Altos Resolution - Adopting Five-Year Findings for the Traffic Impact Fee Fund

13. City of Los Altos Resolution - Authorizing FY2025/26 year-end interfund transfers and reserve reallocations

14. City of Los Altos Purchasing Policy

ENVIRONMENTAL IMPACT
These resolutions are exempt from environmental review pursuant to Section 15061(b)(3) of the State Guidelines implementing the California Environmental Quality Act of 1970, as amended.

FISCAL IMPACT
Adoption of the attached resolutions will establish the appropriations limit, fees, salaries, the utility users tax, the transient occupancy tax, the operating budget, and the Capital Improvement and Major Maintenance Program (CIMMP) for FY2026/27 and will authorize FY2025/26 yearend interfund transfers and reserve assignments.

PREVIOUS COUNCIL CONSIDERATION
The City Council considers adoption of these resolutions at least annually. The City Council reviewed the FY2026/27 Proposed Operating Budget and reviewed the FY2027-31 CIMMP at a public meeting held on May 26, 2026.

BACKGROUND
The City of Los Altos, under the policy direction of the City Council, presents the annual budget to align with the stated Council priority areas and incorporate resident feedback, while addressing the external pressures that shape municipal budgets. As in recent years, one-time federal funds are no longer available, and continued State budget pressures may affect the return of local tax dollars. Given the need to remain self-sufficient, City staff have prioritized investments in public safety and long-term infrastructure where possible.

ANALYSIS
The City Council will consider the attached resolutions, which will approve the Appropriations Limit, the FY2026/27 Fee Schedule, the FY2026/27 Salary Schedule, FY2026/27 Utility Users Tax, FY2026/27 Transient Occupancy Tax, the Use of Park Impact Fee, FY2026/27 Operating Budget, and FY2027-31 Capital Improvement and Major Maintenance Program (CIMMP); receive and file the FY2023/24 and FY2024/25 Development Impact Fee (AB 1600) Reports; adopt the Five-Year Findings for the Park and Traffic Impact Fee funds; authorize FY2025/26 year-end interfund transfers and reserve assignments; and adopt the updated Purchasing Policy.

Together, these financial plans authorize the City to continue delivering essential services and making investments that reflect the community’s needs and priorities.

DISCUSSION
Annual Budget Format and Process
The FY2026/27 Operating Budget is presented as an annual budget. This annual structure allows the City to more effectively respond to changing conditions and better reflect the Council’s strategic goals, which are reviewed and updated each year. In developing the budget, departments justified proposed costs based on need and alignment with community outcomes.

The resulting budget and capital plan translate the Council’s adopted Strategic Goals into action by allocating resources that support equity, sustainability, and fiscal responsibility.

Strategic Priorities and Implementation
The FY2026/27 Budget reflects the City Council’s Strategic Goals by directing resources to initiatives that support the community’s values and long-term vision, distributed across programs and services in alignment with the City’s overarching values of equity, sustainability, and fiscal responsibility.

Public Safety
The Budget maintains funding for police services, emergency response, and contracted fire protection, with FY2026/27 Public Safety program expenditures of approximately $29.5 million.

Investments include Police Department building security upgrades, the 999 Fremont police substation, design work for a future Police Department building, a replacement City Hall emergency back-up power generator, a Police Records Management and Dispatch System upgrade, and improvements to the Emergency Operations Center.

Business Communities
Support for the local business community remains a focus. The Budget includes downtown EV charging infrastructure, downtown parking lot resurfacing, the downtown park space project, and continued economic development activity integrated with broader planning efforts, including the General Plan update.

Circulation Safety and Efficiency
The Budget continues to prioritize circulation safety and mobility. Funding supports the annual street resurfacing program, the San Antonio Road Complete Street project, El Camino Real ADA ramp and sidewalk improvements, annual traffic sign replacement, the Fremont Avenue pedestrian bridge rehabilitation, and continued Safe Routes to School (SRTS) work to improve student access.

Environmental Sustainability
The Budget supports sustainable operations and resilience, including solar and battery storage at the Grant Park facility, EV charging infrastructure at the Municipal Services Center (707 Fremont Avenue) advanced in coordination with SVCE and PG&E, a lower-emission back-up generator, and sanitary sewer rehabilitation programs that protect water quality.

Housing
The Budget reflects continued implementation of the City’s certified Housing Element through the General Plan and zoning updates, public engagement, and support for development

applications, along with investments in community gathering spaces such as the Grant and Shoup Park playground renovations and the downtown park.

Fiscal Responsibility and Internal Reserves
The Budget supports the City’s long-term financial stability. The Emergency and Operating Reserve will remain fully funded at 20% of General Fund operating expenditures, or approximately $12.6 million. At fiscal year-end, the General Fund is projected to retain an unassigned balance of approximately $19.7 million, with approximately $14.9 million in the Facility Maintenance Fund and approximately $0.9 million in the Fleet Vehicle Fund to support ongoing infrastructure and equipment needs. In FY2025-26, the City applied a $5.0 million Additional Discretionary Payment (ADP) to CalPERS to reduce future pension obligations.

General Fund Revenues and Expenditures
General Fund revenue for FY2026/27 is projected at approximately $72.0 million. Property tax remains the largest source, at approximately $40.8 million, or roughly 57% of the total. Other key revenues include Community Development Fees (approximately $10.5 million), Other Taxes (approximately $5.1 million), Utility Users Tax (approximately $3.7 million), Sales Tax (approximately $3.6 million), and Franchise Fees (approximately $2.8 million).

General Fund operating expenditures are budgeted at approximately $63.2 million, an increase of approximately 11.5% over the prior-year budget, reflecting higher personnel costs, pension contributions, insurance, and key service contracts. The City expects an operating surplus of approximately $8.8 million before transfers, which supports reserve contributions and overall financial strength.

Enterprise Operations
The FY2026/27 Budget includes continued investment in the City’s enterprise operations supporting wastewater and solid waste services. The Sewer Fund projects approximately $15.1 million in revenue and approximately $11.0 million in expenses, including local system maintenance, capital improvements, and the City’s share of regional wastewater operations. The Solid Waste Fund includes approximately $1.2 million in revenue and approximately $2.4 million in expenses, including franchise services, regulatory compliance, and related programs.

Capital Improvement and Major Maintenance Program
The City prepares the Capital Improvement and Major Maintenance Program (CIMMP) each year as part of the annual budget. The program funds one-time capital projects, such as new facilities, park improvements, and street upgrades, as well as recurring major maintenance that preserves existing assets. For FY2026/27, the City has programmed approximately $28.6 million for capital and major maintenance projects, including re-appropriated (rollover) funding from prior-year projects; over the five-year period (FY2027-31), the program totals

approximately $35.1 million. Funding is provided by the Capital Projects (CIP) Fund, special revenue funds, development impact fees, the Sewer Fund, the Technology and Fleet replacement funds, and grants. Key priorities include the Library construction design phase, the San Antonio Road Complete Street project, downtown parking lot resurfacing, the downtown park space project, Grant and Shoup Park playground renovations, the City Hall emergency back-up power generator, the General Plan update, and sanitary sewer rehabilitation programs.

Purchasing Policy Updates
The primary substantive change clarifies and confirms the City Manager’s authority to approve transfers of appropriations between capital improvement projects, provided that such transfers do not increase the total adopted appropriation. Any increase in total appropriation levels, and any transfer between funds, continues to require City Council authorization. This change provides flexibility to manage active capital projects as conditions and bids change during the year, without diminishing Council’s control over overall appropriation levels.

The remaining revisions are primarily for consistency, clarity, and technical accuracy. General wording and formatting throughout the policy have been updated to improve readability, correct minor errors, and align procedural descriptions with current administrative practices and compliance standards.

ATTACHMENTS

1. Attachment 1 - Council Priorities Budget Detail

2. Attachment 2 - FY2026-27 Budget General Fund

3. Attachment 3 - FY2026-27 Budget Enterprise Fund

4. Attachment 4 - FY2027-FY2031 CIMMP Detail

5. Attachment 5 - FY2023-24 AB1600 Report

6. Attachment 6 - FY2024-25 AB1600 Report

7. Attachment 7 - FY2021-FY2025 Five-Year Findings Report - Park Impact Fee

8. Attachment 8 - FY2021-FY2025 Five-Year Findings Report - Traffic Impact Fee

9. Attachment 9 - FY2026-27 City-wide Fee schedule

10. Attachment 10 - Completed and Planned Safe Routes to School (SRTS) Projects

11. Attachment 11 - FY2026-27 Salary Schedule

12. Attachment 12 - Purchasing Policy June 2026

13. Attachment 13 - Resolution - Appropriations Limit

14. Attachment 14 - FY2026-27 City-wide Fee schedule

15. Attachment 15 - Resolution - UUT

16. Attachment 16 - Resolution - TOT

17. Attachment 17 - Resolution - Park Impact Fee

18. Attachment 18 - Resolution - Operating Budget

19. Attachment 19 - Resolution - CIMMP

20. Attachment 20 - Resolution - Development Impact Fee FY24

21. Attachment 21 - Resolution - Development Impact Fee FY25

22. Attachment 22 - Resolution - PIF 5YR

23. Attachment 23 - Resolution - TIF 5YR

24. Attachment 24 - Resolution - Interfund Transfers and Reserve Assignments

25. Attachment 25 - Resolution - Salary Schedule

Public Safety
• Police Records Management & Dispatch System
• 999 Fremont Police Sub-Station
• New Police Building Design
• Police Department Building Security Upgrades

Business Communities
• Downtown Park Space with Parking
• Downtown Parking Lot Resurfacing
• Downtown Circulation Study
• Downtown Lighting Improvements

Circulation Safety and Efficiency
• San Antonio Road Complete Streets Project
• FY2026-27 Annual Street Resurfacing / Striping / Slurry Seal • New Traffic Signal Controller (Springer & Fremont)
• Fremont Ave Pedestrian Bridge Rehabilitation
• Traffic Safety Maintenance Citywide
• Annual Traffic Sign Replacement

Environmental Sustainability
• Annual Sewer Structural Reach Replacement
• Sanitary Sewer Video Inspection
• Adobe Creek Sewer Main Replacement
• Green Stormwater Infrastructure Retrofit
• Grant Park Solar & Battery Storage
• MSC EV Infrastructure Project

Housing (including Parks)
• Comprehensive General Plan Update
• California Prohousing Designation
• 330 Distel Circle Project
• Shoup & Grant Park Playground Renovation
• McKenzie Pickleball Courts
• Tennis Court Resurfacing (Rosita & Montclaire)
• Grant Park Basketball Court Replacement

Facilities
• Library Construction
• City Hall Emergency Back-up Power Generator
• History Museum Roof Replacement
• Halsey House

REVENUES
FY2023/24
Actual
FY2024/25
Actual
FY2025/26
Budget
FY2025/26
Projection
FY2026/27
Budget
% Change
over FY26
Projection
% Change
over FY26
Budget
Taxes $ 45,692,947 $ 48,391,117 $ 50,741,767 $ 51,622,903 $ 53,127,597 2.9% 4.7% Fees 9,884,055 14,245,789 11,573,254 15,463,527 15,048,600 -2.7% 30.0% Interest 2,455,767 2,114,807 1,656,000 2,250,179 2,137,670 -5.0% 29.1% Misc. Revenue 1,422,260 2,074,730 1,142,696 1,516,810 1,540,372 1.6% 34.8% One Time Revenue - - - - -
Total General Fund Revenue 59,455,029 66,826,443 65,113,717 70,853,418 71,854,239 1.4% 10.4%

PROGRAM EXPENDITURES
FY2023/24
Actual
FY2024/25
Actual
FY2025/26
Budget
FY2025/26
Projection
FY2026/27
Budget
% Change
over FY26
Projection
% Change
over FY26
Budget
Legislative $ 584,065 $ 831,179 $ 1,018,533 $ 941,719 $ 1,241,596 31.8% 21.9% City Manager's Office 5,248,766 4,730,211 4,547,263 4,416,975 5,325,706 20.6% 17.1% Finance 2,392,063 1,943,698 2,565,376 1,636,657 2,540,861 55.2% -1.0% Human Resources 1,827,293 1,764,441 2,066,391 1,673,622 2,175,486 30.0% 5.3% Development Services 4,598,636 5,476,638 6,367,951 5,471,355 6,120,984 11.9% -3.9% Public Works 2,367,066 2,160,758 2,677,976 2,586,001 3,316,144 28.2% 23.8% Public Safety 22,006,310 24,326,347 27,016,213 31,771,488 29,547,688 -7.0% 9.4% Community Services 8,635,454 9,793,975 10,435,278 10,403,603 12,787,655 22.9% 22.5% Total General Fund Expenditure 47,659,654 51,027,247 56,694,982 58,901,420 63,056,120 7.1% 11.2% Transfers In / (Out) (1,578,000) (20,065,209) (15,252,719) (15,940,836) (8,082,244) Revenues over Expenditures
Surplus / (Deficit) Before
Transfers 11,795,375 15,799,196 8,418,735 11,951,998 8,798,119 -26.4% 4.5% Revenues over Expenditures
Surplus / (Deficit) After Transfers 10,217,375 (4,266,013) (6,833,984) (3,988,838) 715,875

GENERAL FUND SUMMARY

REVENUES
FY2023/24
Actual
FY2024/25
Actual
FY2025/26
Budget
FY2025/26
Projection
FY2026/27
Budget
% Change
over FY26
Projection
% Change
over FY26
Budget
Property Tax $ 34,410,697 $ 36,186,927 $ 38,243,942 $ 39,414,000 $ 40,786,830 3.5% 6.6% Sales Tax 3,442,623 3,591,444 3,592,738 3,633,101 3,568,451 -1.8% -0.7% Utility Users Tax 3,517,437 3,725,468 4,128,018 3,678,270 3,654,303 -0.7% -11.5% Other Taxes 4,322,189 4,887,279 4,777,069 4,897,531 5,118,013 4.5% 7.1% Franchise Fees 2,608,195 2,799,296 2,842,464 2,806,194 2,810,800 0.2% -1.1% Recreation Fees 1,598,589 1,437,297 1,647,790 1,622,221 1,734,100 6.9% 5.2% Community Development Fees 5,677,271 10,009,197 7,083,000 11,035,112 10,503,700 -4.8% 48.3% Intergovernmental 23,238 - - - - 0.0% 0.0%
Grants and Donations 806,765 9,900 10,000 5,067 10,000 97.4% 0.0% Interest Income 2,455,767 2,114,807 1,656,000 2,250,179 2,137,670 -5.0% 29.1% Miscellaneous Revenue 592,257 2,064,830 1,132,696 1,511,743 1,530,372 1% 35% Total General Fund Revenue 59,455,029 66,826,443 65,113,717 70,853,418 71,854,239 1.4% 10.4% One-Time Revenue - - - - -
Transfer In - 500,000 - 8,666,500 -
Total General Fund
Revenue/Transfers In $ 59,455,029 $ 67,326,443 $ 65,113,717 $ 79,519,918 $ 71,854,239 -9.6% 10.4%

GENERAL FUND REVENUE SUMMARY

PROGRAM EXPENDITURES
FY2023/24
Actual
FY2024/25
Actual
FY2025/26
Budget
FY2025/26
Projection
FY2026/27
Budget
% Change
over FY26
Projection
% Change
over FY26
Budget

LEGISLATIVE
11110-City Council $ 584,065 $ 831,179 $ 1,018,533 $ 941,719 $ 1,241,596 31.8% 21.9% Total City Council 584,065 831,179 1,018,533 941,719 1,241,596 31.8% 21.9%

CITY MANAGER'S OFFICE
12100-City Manager 975,308 1,087,610 920,084 1,474,533 1,058,290 -28.2% 15.0% 13100-City Attorney 1,369,103 1,210,165 817,000 943,172 800,000 -15.2% -2.1% 14100-City Clerk 530,646 585,069 700,038 541,483 598,898 10.6% -14.4% 12400-Public Information 320,545 217,760 109,330 132,383 542,095 309.5% 395.8% 12500-Emergency Preparedness 55,624 41,307 10,000 - 70,500 100.0% 605.0% 12600-Sustainability 138,795 - 414,525 - 387,138 100.0% -6.6% 12300-Economic Development 416,710 241,588 249,415 211,327 264,598 25.2% 6.1% 12200-Information Technology 1,442,033 1,346,711 1,326,872 1,114,076 1,604,187 44.0% 20.9% Total City Manager's Office 5,248,766 4,730,211 4,547,263 4,416,975 5,325,706 20.6% 17.1% 25100-Finance 2,023,378 1,701,366 1,875,616 1,328,268 2,061,495 55.2% 9.9% 26100-Non Department 368,685 242,333 689,760 308,389 479,366 55.4% -30.5% Total Finance 2,392,063 1,943,698 2,565,376 1,636,657 2,540,861 55.2% -1.0% 21100-Human Resources 1,827,293 1,764,441 2,066,391 1,673,622 2,175,486 30.0% 5.3%

DEVELOPMENT SERVICES
31100-Planning 2,685,792 2,545,766 2,891,600 2,166,639 2,839,799 31.1% -1.8% 32200-Inspections 1,672,910 2,759,135 3,078,886 3,050,501 3,020,936 -1.0% -1.9% 35100-Business License 89,251 23,440 110,906 57,454 118,128 105.6% 6.5% 36100-Code Enforcement 150,683 148,297 286,560 196,760 142,122 -27.8% -50.4% Total Development Services 4,598,636 5,476,638 6,367,951 5,471,355 6,120,984 11.9% -3.9%

PUBLIC WORKS
41100-Engineering 1,212,366 1,219,413 1,206,547 1,230,232 1,205,174 -2.0% -0.1% 41200-Traffic Control 828,887 591,305 859,699 969,434 1,720,404 77.5% 100.1% 44200-Urban Runoff 325,813 229,602 330,285 289,637 390,565 34.8% 18.3% 38100-Land Use Engineering - 120,438 281,445 96,699 - -100.0% -100.0% Total Public Works 2,367,066 2,160,758 2,677,976 2,586,001 3,316,144 28.2% 23.8%

PUBLIC SAFETY
61100-Administration 2,007,285 3,050,603 3,032,569 4,636,832 4,047,389 -12.7% 33.5% 62100-Support Services 2,459,448 2,854,810 3,648,776 4,016,002 4,248,415 5.8% 16.4% 62200-Investigation Services 1,524,816 1,803,310 1,326,267 1,162,959 1,958,780 68.4% 47.7% 63200-Traffic Operations 1,643,910 1,767,767 1,138,318 1,022,804 1,190,973 16.4% 4.6% 63300-Patrol Services 5,744,867 6,604,883 8,146,234 9,336,451 7,973,646 -14.6% -2.1% 63400-Crossing Guard - - - 372,390 357,696 -3.9% 100.0% 66100-Fire Services 8,625,984 8,244,974 9,724,050 11,224,050 9,770,790 -12.9% 0.5% Total Public Safety 22,006,310 24,326,347 27,016,213 31,771,488 29,547,688 -7.0% 9.4%

GENERAL FUND EXPENDITURE SUMMARY

PROGRAM EXPENDITURES
FY2023/24
Actual
FY2024/25
Actual
FY2025/26
Budget
FY2025/26
Projection
FY2026/27
Budget
% Change
over FY26
Projection
% Change
over FY26
Budget

COMMUNITY SERVICES
71100-REC Administration 1,381,190 1,288,965 1,460,724 1,154,039 1,885,065 63.3% 29.1% 72xxx-Facilities 400,937 491,548 367,540 488,373 456,870 -6.5% 24.3% 73100-Tiny Tots 356,245 293,552 254,389 393,193 - -100.0% -100.0% 74100-Community Events 60,643 93,520 142,098 87,284 153,939 76.4% 8.3% 76100-Teen Program 68,561 71,956 98,302 59,882 102,711 71.5% 4.5% 77500-Camps-Contracts 28,548 62,883 48,000 57,355 48,000 -16.3% 0.0% 77400-Camps-Programs 151,440 238,439 344,096 227,223 352,372 55.1% 2.4% 77200-Classes-Youth 223,438 30,814 54,033 26,547 114,082 329.7% 111.1% 77300-Classes-Adults 40,926 215,479 228,001 273,964 297,633 8.6% 30.5% 78200-Sports Junior High 132,947 157,959 165,112 117,764 176,662 50.0% 7.0% 78300-Adult Sports 1,711 108 - - - 0.0% 0.0%
79100-Seniors Operations 262,840 292,679 317,276 284,146 385,852 35.8% 21.6% 79200-Seniors Activities 36,151 52,786 152,700 70,326 167,700 138.5% 9.8% 51100-MSC Administration 238,591 513,348 477,957 352,487 451,509 28.1% -5.5% 53100-Street Maintenance 678,289 799,931 847,123 738,290 1,756,566 137.9% 107.4% 51200-Fleet Maintenance 280,083 380,019 516,837 333,184 503,396 51.1% -2.6% 51400-Parks and Street Landscaping 3,104,082 3,471,104 3,789,690 4,139,648 4,433,035 7.1% 17.0% 51500-Facility Maintenance 1,188,832 1,338,886 1,171,400 1,599,898 1,502,262 -6.1% 28.2% Total Parks & Recreation 8,635,454 9,793,975 10,435,278 10,403,603 12,787,655 22.9% 22.5% Total General Fund Expenditures 47,659,654 51,027,247 56,694,982 58,901,420 63,056,120 7.1% 11.2% Transfer Out 1,578,000 20,565,209 15,252,719 24,607,336 8,082,244 Total General Fund
Expenditures/Transfers Out $ 49,237,654 $ 71,592,456 $ 71,947,701 $ 83,508,756 $ 71,138,364 -14.8% -1.1%

SEWER FUND FY2023/24 Actual FY2024/25 Actual FY2025/26 Budget FY2025/26
Projection FY2026/27 Budget
Beginning Net Position $ 30,553,865 $ 32,899,043
Unrestricted Net Position 16,710,691
Interest Income $ 403,753 $ 553,085 $ 310,500 $ 602,642 $ 576,407 Sewer Charges 10,383,108 10,501,872 12,202,565 12,393,184 14,526,369 Sewer Connection Fees 1,085 145,214 14,000 8,895 7,000
Misc. Sewer Fees 25,825 187,377 20,000 60,259 10,000
Total Revenues 10,813,771 11,387,549 12,547,065 13,064,980 15,119,776 Sewer Administration 7,572,122 7,421,132 7,584,710 7,318,045 6,406,174 Sewer System Maintenance 378,203 1,768,896 2,249,544 2,241,195 2,411,265 Capital Program 224,591 531,147 2,263,583 1,160,562 2,154,929 Total Expenditures 8,174,916 9,721,175 12,097,837 10,719,802 10,972,368 Operating Surplus / (Deficit) 2,863,446 2,197,521 2,712,810 3,505,740 6,302,337 Change in Net Position (Including Capital) 2,638,855 1,666,374 449,228 2,345,178 4,147,408 Transfer In / (Out) (720,000) - - - -
Ending Net Position $ 32,899,043 $ 37,046,451
SOLID WASTE FUND FY2023/24 Actual FY2024/25 Actual FY2025/26 Budget FY2025/26
Projection FY2026/27 Budget
Beginning Net Position (Unrestricted) $ 2,203,334 $ 967,362 Interest Income 229,463 178,688 103,500 137,602 125,206 Administrative Charges 951,996 1,062,492 1,048,900 946,549 1,064,868 AB939 Tax - 12,300 38,000 9,694 12,000
Grants and donations - - - - -
Total Revenues 1,181,459 1,085,000 1,085,000 1,093,844 1,202,074 Solid Waste Administration - 2,411,198 2,427,641 2,329,817 2,373,718 Total Expenditures - 2,411,198 2,427,641 2,329,817 2,373,718 Net Operations 1,181,459 (1,326,198) (1,342,641) (1,235,972) (1,171,644) Transfer In / (Out) - - - - 500,000
Ending Net Position $ 967,362 $ 295,718

ENTERPRISE FUND SUMMARY

FY2027-31 Capital Improvement & Major Maintenance Projects No. Project # Project Name Project Scope Strategic
Alignment Status Funding Source FY2026-27
Budget FY2027-28 Budget FY2028-29
Budget FY2029-30 Budget FY2030-31 Budget Total
1 10001 Police Department Building Security
Upgrades
The Police department security cameras need
replacement/upgrading. Public Safety Active Technology 155,000 - - - - 155,000 2 10002 San Antonio Club Upgrades Upgrades to the interior and exterior of the historic facility. Housing Active Park Impact Fee 85,000 - - - - 85,000 3 10004 999 Fremont
The City-owned facility at 999 Fremont Ave. is currently unoccupied. The Los Altos Police Department plans to use it as a sub-station with a few interior upgrades that will allow officers better access to the south side of the city. The facility will have a reception area for the public along with workspace, fitness area and break area for officers. Funding for this project is to install a small kitchen space as well as a shower and changing space. Prior year funding added the walls that created the reception area.

Public Safety Active CIP 239,563 - - - - 239,563
4 10005 Halsey House Rehabilitation
The Facilities Maintenance Division manages the annual rat abatement contract and the fencing rental for the Halsey House.

An environmental consultant is currently working on the Environmental Impact Report (EIR) for the Halsey House.

Housing Active CIP 181,569 - - - - 181,569
5 10007 City Hall Emergency Back-up Power
Generator
The existing stand-by generators at City Hall, Police Department and the Municipal Services Center are beyond their useful life and in need of replacement. The City has been required by Bay Area Air Quality Management District (BAAQMD) and California Air Resources Board (CARB) to register the emergency generator under the Portable Equipment Registration Program. The
generator is subject to unscheduled inspections by the State for compliance with emission requirements. While the existing generator is meeting the current emission requirements, it is aging and at risk of exceeding emission standards soon. A new more energy-efficient generator will meet all BAAQMD
requirements and will be more cost-effective to operate.

Public Safety Active CIP 460,000 - - - - 460,000
6 10009 Library Construction
The design team has wrapped up the Schematic Design Phase which includes 30% drawings and refined cost estimates for the overall project. Over the next fiscal year, the design team will work to develop 60% design documents and further refined cost estimates before ultimately developing full Construction Documents that will be a full bid-ready plans and specifications.

This project is anticipated to be ready for final review and bid preparation at the end of FY26-27 so that construction on this project will be targeted for FY27-28 and part of FY28-29.

General
Government Active Grant 919,597 - - - - 919,597
CIP 195,000 - - - - 195,000
Fleet Vehicle 188,450 - - - - 188,450
8 10011 History Museum Roof Replacement This project will replace the roof at the Los Altos History Museum. The roof is beyond it's useful life.

Environmental
Sustainability Active Facility Maintenance 215,000 - - - - 215,000 9 10014 Grant Park Facility Solar and Battery
Storage Installation
This project is for the purchase and installation of solar panels and battery power storage at the Grant Park buldings. This would reduce the electric load required from the public utility supplier and create an emergency power storage back-up in case of power outage.

Environmental
Sustainability Active Park Impact Fee 254,444 - - - - 254,444 7 The City is electrifying its fleet with support from SVCE and PG&E.

In 2024, SVCE helped develop EV infrastructure plans for 707 Fremont Ave. Through PG&E’s Make-Ready Program, PG&E
handles utility upgrades while the City installs chargers and site work This CIP readies the site for fleet electrification 10010 MSC EV Infrastructure Project Active Environmental Sustainability

FY2027-31 Capital Improvement & Major Maintenance Projects No. Project # Project Name Project Scope Strategic
Alignment Status Funding Source FY2026-27
Budget FY2027-28 Budget FY2028-29
Budget FY2029-30 Budget FY2030-31 Budget Total
10 10015 New Police Building Design
This project focuses on the planning and architectural
development of a modern facility to support effective law enforcement operations and community engagement. It may include admin office, secure detention areas, evidence storage, public service counters, and parking.

Public Safety Active Facility
Maintenance 229,300 - - - - 229,300
11 10018 Garden House Upgrade Design Create a design for interior upgrades at the Garden House facility. Housing New Park Impact Fee 75,000 - - - - 75,000 12 10019 Tennis Court Resurfacing Resurface Rosita and Montclaire tennis courts. Montclaire will be a full subsurface replacement and include new fencing. Housing New Park Impact Fee 310,000 - - - - 310,000 13 10020 Grant Park Basketball Court
Replacement and resurfacing
Replace and resurface basketball court surface at Grant Park including posts and backboards. Housing New Park Impact Fee 250,000 - - - - 250,000 14 10021 McKenzie Pickleball Courts Convert McKenzie tennis courts into permanent pickleball court that would include lighting and leisure space. Housing New Park Impact Fee 375,000 - - - - 375,000 15 10022 Lincoln Park Gazebo Replacement Replace gazebo located at the west side of Lincoln Park. Housing New Park Impact Fee 200,000 - - - - 200,000 16 10023 Admin Building B (formerly LAYC)
Playground
Expand the playground footprint, enclose the fencing and add play elements. Housing New Park Impact Fee 80,000 - - - - 80,000 17 10024 Redwood Grove cement pathway
replacement
Replacement/Improvement of damaged cement pathway near
archery area in Redwood Grove. Housing New Park Impact Fee 20,000 - - - - 20,000 18 10025 Replacement of irrigation controls Replace outdated irrigation controls in all city parks. Housing New CIP 75,000 - - - - 75,000 19 10026 Sidewalk concrete repair and work City-wide sidewalk condition evaluation. Circulation Safety & Efficiency New CIP 50,000 - - - - 50,000
20 10028 Green Stormwater Infrastructure
Retrofit Program
This Capital Improvement Program (CIP) project will implement green stormwater infrastructure (GSI) retrofits within the public street right of way to support compliance with the Municipal Regional Stormwater National Pollutant Discharge Elimination System (NPDES) Permit MRP 3.0 requirements.The project will construct curb cuts, permeable pavement and bioretention facilities within selected public streets to capture, convey, and treat stormwater runoff from impervious roadway and sidewalk surfaces. Improvements will include but not limited to
installation of curb openings, engineered bioretention soil media, permeable pavement, underdrains as needed, and native or climate appropriate vegetation to promote infiltration, evapotranspiration, and pollutant removal.The project is intended to retrofit existing public streets, where feasible, and provide stormwater treatment consistent with MRP 3.0
requirements for Green Stormwater Infrastructure (GSI) and Low Impact Development (LID) practices. The City will pursue implementation of GSI improvements toward a cumulative
retrofit target of 1.88 acres of impervious drainage area treated, consistent with the City’s MRP 3.0 compliance obligations by the end of the current permit term (June 30, 2027).

Environmental
Sustainability New CIP 350,000 150,000 - - - 500,000
21 10029 Capacity Study (Civic Center)
The City will study the electrical capacity for the Civic Center campus in an analysis of current and future improvements to the property. This will allow the City to prepare and plan for any necessary electric infrastructure improvements that will be required for the campus.

Environmental
Sustainability New CIP 120,000 - - - - 120,000

FY2027-31 Capital Improvement & Major Maintenance Projects No. Project # Project Name Project Scope Strategic
Alignment Status Funding Source FY2026-27
Budget FY2027-28 Budget FY2028-29
Budget FY2029-30 Budget FY2030-31 Budget Total
22 20000 Downtown Lighting Improvements
City staff will improve the lighting within the downtown core because sidewalks, Veterans Community Plaza, and parking plazas are not extremely well lit in some locations. This will improve safety for residents and businesses while also increasing downtown vibrancy. City staff will identify other lighting solutions that may limit their impact on the overall electrical infrastructure.

Business
Communities Active CIP 66,526 - - - - 66,526
23 20002 Downtown Park Space with parking
The City completed extensive community engagement last
summer by participating in 48 community events and connecting with over 1,000 community members at pop-up events,
meetings, and workshops. After engaging with the community, the design team created design options that were presented to City Council in February 2026 that have been refined further based upon Council direction. The design team will take the refined design options back out to the community in the summer of 2026 for community engagement and feedback regarding preferred design options, locations, and amenities now that there are potential design concepts for discussion. Upon completion of the community engagement, this project will return for
consideration in FY26-27.

Business
Communities Active Park Impact Fee 1,104,160 - - - - 1,104,160 24 30000 General Plan
The General Plan establishes a community’s long?term vision for growth, reflecting shared priorities and values while guiding future development. The City of Los Altos last completed a comprehensive update of its General Plan in 2002. Since then, numerous State laws have been enacted that require a full overhaul of the existing plan. Most recently, the City adopted its 6th Cycle Housing Element and updated its Safety Element to comply with State mandates. State law requires that when a jurisdiction adopts a 6th Cycle Housing Element, it must also update its Safety Element. Additionally, when two or more required General Plan elements are updated, the jurisdiction must prepare an Environmental Justice Element. Beyond these State?mandated updates, the City adopted its Climate Action & Adaptation Plan (CAAP) and Complete Streets Master Plan (CSMP) in 2022. Both documents provide important direction for how Los Altos should grow and evolve in the coming decades. Integrating the policies and vision of the CAAP and CSMP into the General Plan is essential, as the General Plan serves as the City’s highest level regulatory land use document.

Housing Active CIP 1,643,420 - - - - 1,643,420
25 40006 Community Center Café
Complete the construction documents and permitting, purchase the appliances, and complete the construction for a new café inside the Los Altos Community Center.

General
Government Active Park Impact Fee 165,000 - - - - 165,000 26 40008 Shoup Park Playground
This project will upgrade the aging play equipment at Shoup Park.

There are two playgrounds in the park. One playground is age appropriate for 2-5 year olds and another for 5-12 year olds. The funding includes design and construction services.

Housing Active Park Impact Fee 619,950 - - - - 619,950
27 40009 Grant Playground This project will upgrade the aging play equipment at Grant Park.

The funding includes design and construction services. Housing Active Park Impact Fee 619,950 - - - - 619,950

FY2027-31 Capital Improvement & Major Maintenance Projects No. Project # Project Name Project Scope Strategic
Alignment Status Funding Source FY2026-27
Budget FY2027-28 Budget FY2028-29
Budget FY2029-30 Budget FY2030-31 Budget Total
28 70002 Fremont Ave Pedestrian Bridge
Rehabilitation
Rehabilitation would include: replacement of timber decking, replacement of structural blocking and cross bracing,
replacement of endspans middle glulam stringer, replacement of timber railing, installation of a drainage system, minor repairs to the bridge abutments, and backfilling of the first span to repair scour damage and loss of backfill material. Existing bridge abutments will remain.

Circulation Safety &
Efficiency Active CIP 465,967 - - - - 465,967
29 70004 Intersection Access Barrier Removal
The Hetch Hetchy pathway is a multi-use bike and pedestrian trail within the San Francisco Public Utilities Commission (SFPUC) right-of-way, connecting the City to Palo Alto via Arastradero Road. It also serves maintenance access for SFPUC and City staff.

The City will reconstruct the existing crossings at Estrellita Way and Los Altos Avenue to meet current ADA standards and
improve connectivity.

Circulation Safety &
Efficiency Active TDA 26,610 - - - - 26,610
Downtown
Parking 1,000,020 - - - - 1,000,020
CIP 2,499,980 - - - - 2,499,980
OBAG 1,120,000 - - - - 1,120,000
TIF 283,000 - - - - 283,000
32 70013 Downtown Circulation Study
Examine the circulation around the downtown area to determine if one-way will be feasible in the downtown area. (State Street and Main Street)
Business
Communities Active CIP 100,000 - - - - 100,000
33 70015 Bicycle/Pedestrian Education
Program
The project will provide bicycle and pedestrian safety education from K-12 grades. (Original)The project will deliver bicycle and pedestrian safety education programs for students in grades K–12, promoting safe travel behaviors and increasing awareness of traffic rules and best practices.

Circulation Safety &
Efficiency New Measure B 64,000 - - - - 64,000
34 70016 Maintenance of various Traffic
Safety throughout the City
The maintenance of existing traffic signals, signs, and pedestrian crossings at various locations throughout the City. Also, this project will install other safety features as necessary to improve pedestrian and bicycle safety.

Circulation Safety &
Efficiency New RMRA 250,000 - - - - 250,000
35 70017 New traffic signal controller at
Springer and Fremont
Existing control is old and unable to obtain parts. New control, wiring and synchronization of the traffic signal between Fremont and Foothill Express will be done to allow an efficient flow of traffic through this area. (Original)The existing traffic signal controller is outdated and replacement parts are no longer available. This project will replace the controller, upgrade associated wiring, and implement signal synchronization between Fremont Avenue and Foothill Expressway to improve operational reliability and enhance traffic flow through the corridor.

Circulation Safety &
Efficiency New CIP 600,000 - - - - 600,000
36 70020 Cristo Rey Drive Investigation
The longitudinal cracking of the road and the vertical
displacement of the road are such that the embankment on which the road is built may be settling unevenly and shows a possible slope instability.

Circulation Safety &
Efficiency New CIP 150,000 - - - - 150,000
30 31
Active Business
Communities
To prepare topographic survey of all parking lots in the downtown area. Design and reconstruct Parking Plaza 4, 5 and 6. 70005 Downtown Parking lot resurfacing Active Circulation Safety &
Efficiency
This project would employ best practice street design principles to create designated space for each mode of transportation, separating pedestrians and cyclists from motor vehicle traffic, and reducing conflicts between vulnerable road users and vehicles This improvement project would facilitate a safer San Antonio Road Complete Street
Project 70010

FY2027-31 Capital Improvement & Major Maintenance Projects No. Project # Project Name Project Scope Strategic
Alignment Status Funding Source FY2026-27
Budget FY2027-28 Budget FY2028-29
Budget FY2029-30 Budget FY2030-31 Budget Total
37 70021 City-Owned Sidewalk Construction
This project funds the construction phase of sidewalk, curb, and gutter repairs on City-owned frontages identified through the City-owned Sidewalk Assessment (Project# 70000) and ongoing community service requests. Work includes removal and
replacement of failed concrete panels, grinding or ramping of trip hazards, root pruning and root-barrier installation where treerelated damage is present, ADA-compliant curb ramp upgrades, and restoration of adjacent landscaping and pavement. The project will locate and identify damaged sidewalk and curb/gutter and make necessary repairs that do not fall within the legal responsibility of adjacent property owners.

Circulation Safety &
Efficiency New CIP 175,000 - - - - 175,000
38 70022 FY27 Annual Traffic Sign
Replacement
There are approximately 8,000 standard roadway traffic signs throughout the City including street name signs. After time, the signs lose its reflectivity and makes it difficult for the public to see, especially at night. The Traffic Sign Replacement project provides funds to inventory and maintain and replace these signs.

This project will also improve signage per the City’s Complete Streets Master Plan, where appropriate, to improve safe access for bicycles and pedestrians and safer routes to schools. When appropriate, for economies of scale, this project may be integrated with the annual street resurfacing contract. (Original)The City maintains approximately 8,000 roadway traffic signs, including street name signs. Over time, these signs lose reflectivity, reducing visibility—particularly at night—and diminishing their effectiveness. This project provides funding to inventory, maintain, and systematically replace aging or noncompliant signs. The project will also upgrade signage, where appropriate, in alignment with the City’s Complete Streets Master Plan to enhance accessibility and support safer travel for bicyclists, pedestrians, and safe routes to schools. When feasible, sign replacement work will be coordinated with the annual street resurfacing program to improve efficiency and achieve cost savings.

Circulation Safety &
Efficiency
Ongoing -
Annual RMRA 220,000 - - - - 220,000
Measure B 787,677 - - - - 787,677
RMRA 455,922 - - - - 455,922
Gas Tax 576,293 - - - - 576,293
CIP 3,035,671 - - - - 3,035,671
Gas Tax 555,159 - - - - 555,159
VRF 370,106 - - - - 370,106
Measure B 30,157 - - - - 30,157
Gas Tax 649,968 - - - - 649,968
VRF 725,361 - - - - 725,361
41 39
40 Ongoing -
Annual
Circulation Safety &
Efficiency
The annual street resurfacing project includes milling and an overlay of asphalt concrete (AC) on existing street surfaces that are approaching the end of their useful life, as evidenced by cracking and minor pavement failures. Priority was given to streets that is been identified as safe route to school. 70023 FY27 Annual Street Resurfacing
Ongoing -
Annual
Circulation Safety &
Efficiency
This project slurry- or micro-seals City streets annually, including cutout and repair of minor pavement failures. The seal typically places a thin layer of sand and oil over City streets. Neighborhood streets should receive a surface treatment (slurry seal) other than an overlay about every seven years. Sealing is a preventative maintenance treatment that prevents moisture from penetrating

70025 FY27 Annual Street Slurry Seal
Ongoing -
Annual
Circulation Safety &
Efficiency
Roadway striping and markers throughout the City need to be refreshed on a regular basis. Adjustments of striping on existing roadway to reduce conflicts are also considered. Visibility of pavement markings is important to prevent traffic accidents and improve traffic flow
70024 FY27 Annual Street Striping

FY2027-31 Capital Improvement & Major Maintenance Projects No. Project # Project Name Project Scope Strategic
Alignment Status Funding Source FY2026-27
Budget FY2027-28 Budget FY2028-29
Budget FY2029-30 Budget FY2030-31 Budget Total
CIP 531,252 - - - - 531,252
42 80000 Chamber AV Equipment Upgrade
Replacement and upgrade of audio-visual equipment in the City Council Chambers to improve meeting reliability, broadcast quality, and public accessibility of City meetings.

General
Government Active PEG 29,486 - - - - 29,486
43 80001 Police Records Management &
Dispatch System
Procurement of regional tri-city (Los Altos, Mountain View & Palo Alto) “virtual consolidation” public safety information system, which includes the sharing of a Computer Aided Dispatch (CAD) system, Records Management System (RMS), Field Based
Reporting (FBR) and Mobile for Public Safety (MPS) system. These enterprise-wide applications will serve as the centerpiece for the larger project including a common 9-1-1 phone system and a shared police radio frequency. It will provide both technical and physical redundancy for all three cities.

Public Safety Active CIP 247,000 - - - - 247,000

the pavement and softening the base material supporting the pavement.

FY2027-31 Capital Improvement & Major Maintenance Projects No. Project # Project Name Project Scope Strategic
Alignment Status Funding Source FY2026-27
Budget FY2027-28 Budget FY2028-29
Budget FY2029-30 Budget FY2030-31 Budget Total
44 80004 IT Enhancement
The project originates from the IT Initiatives CIP, which has been carried out since FY 2016-17. After performing critical updates to the City's infrastructure (fiber internet, 10Gb switches, HA Firewalls, Wi-Fi, cloud VoIP, etc.), IT continues to deliver additional enhancements to support the City's operations. The enhancements include data center modernization (server rack reconfiguration, hyperconverged system, Virtualization platform, UPS, backup solution), business applications (TRAKiT, ArcGIS, AppEnhancer, etc.), physical security (simplified camera system and door access readers), and software solutions on
cybersecurity (Managed Detection & Responses, Endpoint and Ransomware Protection), and AI-powered solutions. The City's IT Department also continues to perform hardware refresh and software upgrades to keep our IT environment up to date, and enhance the IT experience for all City staff.

General
Government
Ongoing -
Annual Technology 611,503 - - - - 611,503
45 90001 Sewer System Management Plan
Update
In accordance with State requirements, this project will update the City of Los Altos Sewer System Management Plan. The updating is typically done by a sewer management consultant.

The update of the SSMP will be based on compliance with the State Water Resources Control Board (SWRCB) Sanitary Sewer Discharge Requirements (WDR).

Environmental
Sustainability Active Sewer 98,771 50,000 25,000 25,000 50,000 248,771 46 90002 Annual Root Foaming
Annual sewer maintenance program that applies chemical rootcontrol foam to City sewer mains to remove invasive tree roots and prevent regrowth, reducing the risk of blockages and sanitary sewer overflows.

Environmental
Sustainability
Ongoing -
Annual Sewer 170,266 - - - - 170,266
47 90003 Document Scanning
The Document Scanning project includes the conversion of hardcopy documents into digital format and the maintenance of the operating software for the storage and retrieval of documents. This project increases efficiency in work flow for the creation , maintenance, preservation, and retrieval of project records and documentation, which improves the overall
utilization of resources including space and staff time.

Environmental
Sustainability Active Sewer 450,000 150,000 150,000 150,000 150,000 1,050,000 48 90005 Sanitary Sewer Video Inspection
As sewer system networks age, the risk of deterioration, blockages, and collapses become a major concern. Cleaning and inspecting sewer lines is essential to maintaining a properly functioning system. These activities further a community’s reinvestment into its wastewater infrastructure. Inspection programs are required to determine current sewer conditions and to aid in planning a maintenance or rehabilitation strategy.

Closed-circuit television (CCTV) inspections are the most frequently used, most cost efficient, and most effective method to inspect the internal condition of a sewer.The 2013 Sanitary Sewer Master Plan Update recommends full video inspection of the sanitary sewer system every 5 years. Current system CCTV data was last collected between 2021 and 2023.

Environmental
Sustainability Active Sewer 878,983 440,000 440,000 440,000 440,000 2,638,983

FY2027-31 Capital Improvement & Major Maintenance Projects No. Project # Project Name Project Scope Strategic
Alignment Status Funding Source FY2026-27
Budget FY2027-28 Budget FY2028-29
Budget FY2029-30 Budget FY2030-31 Budget Total
49 90006 Adobe Creek Sewer Main
Replacement
The project involves rehabilitation and partial realignment of approximately 6,580 linear feet of sewer main along Adobe Creek. The construction of the project is to be completed in four phases. Obtaining permits with regulatory agencies to work near and within the creek requires additional time, coordination, environmental submittal review, and overall project
management.

Environmental
Sustainability Active Sewer 491,908 - - - - 491,908

FY2027-31 Capital Improvement & Major Maintenance Projects No. Project # Project Name Project Scope Strategic
Alignment Status Funding Source FY2026-27
Budget FY2027-28 Budget FY2028-29
Budget FY2029-30 Budget FY2030-31 Budget Total
50 90007 FY27 Annual Sewer System Repair
Program
The 2013 Sanitary Sewer Master Plan Update recommended
replacement of segments of pips located at various locations throughout the City that are included in the focused cleaning schedule that have severe sags. Such sags can cause
accumulation of debris and grease which necessitates frequent cleaning.

Environmental
Sustainability New Sewer 235,000 - - - - 235,000
51 90008 Sewer Flow Metering - Los Altos
Hills Conveyance
This project will install permanent flow meters on sewers conveying Los Altos Hills wastewater into the City system. The meters will provide continuous flow data to replace the current per-household allocation method with cost sharing based on measured wastewater flows. Project elements include evaluating existing and proposed meter locations, confirming site feasibility (access, power, and communications), constructing permanent meters, and conducting a monitoring and validation period before full implementation for billing, inter-agency coordination and long-term agreements. The anticipated project duration is approximately 2-3 years.

Environmental
Sustainability New Sewer 150,000 1,350,000 - - - 1,500,000 52 90010 FY27 Annual Fats, Oils, Grease
Program (FOG)
State-mandated source-control program that inspects foodservice establishments and educates customers on best management practices to keep fats, oils, and grease out of the sanitary sewer system.

Environmental
Sustainability
Ongoing -
Annual Sewer 67,308 54,000 56,000 58,000 60,000 295,308 53 90011 FY27 Annual Structural Reach
Replacement
Annual capital program to replace segments of sanitary sewer main with moderate-to-severe structural defects identified through CCTV inspection, in implementation of the 2013 Sanitary Sewer Master Plan Update.

Environmental
Sustainability
Ongoing -
Annual Sewer 1,264,680 225,000 900,000 225,000 900,000 3,514,680 TOTAL 28,613,976 2,419,000 1,571,000 898,000 1,600,000 35,101,976

Park Impact Fees and Traffic Impact Fees
Park Impact Fees
the Park Impact Fee and the Traffic impact Fee
for
Fiscal Year Ended
City of Los Altos
Annual Report
on
June 30, 2024
ATTACHMENT 1

Exhibit B
Park Impact Fees
Pursuant to City of Los Altos Municipal Code Chapter 13.24 Per City Council Adopted Resolution No. 2022-30
New Single-family Residential Home $ 77,500 per Home
New Multiple-family Unit $ 48,800 per Unit
Pursuant to City of Los Altos Municipal Code Chapter 3.48 Per City Council Adopted Resolution No. 2022-30
Single-family Housing $ 6,774 per Residential Unit
Multiple-family Housing $ 4,159 per Residential Unit
Senior Housing $ 1,744 per Residential Unit
Commercial $ 12,409 per One Thousand Gross Square Feet
Office $ 9,994 per One Thousand Gross Square Feet
Please refer to Exhibit C-2
Schedule of Park Impact Fees
Schedule of Traffic Impact Fees
City of Los Altos
Park Impact Fees and Traffic Impact Fees
For Year Ended June 30, 2024

EXHIBIT C-1
mpact Fees and Traffic Impact Fees
Fiscal Beg Fees Interest Transfers FY 23/24 Transfers End Year Bal Collected
Income/
Unrealized Gain
and Loss In Expenditures Out Bal
2005 $ - $ 30,000 $ 670 $ 6,500 $ 24,170
2006 24,170 60,000 2,757 86,927
2007 86,927 243,000 7,705 337,632
2008 337,632 867,000 23,890 211,780 1,016,742
2009 1,016,742 19,684 73,046 963,380
2010 963,380 468,000 7,868 154,257 1,284,991
2011 1,284,991 132,000 7,784 1,136,867 287,908
2012 287,908 756,000 6,027 100,185 949,750
2013 949,750 3,636,000.00 4,640.00 4,590,390
2014 4,590,390 1,260,000 21,574 5,871,964
2015 5,871,964 62,708 24,420 56,773 5,902,319
2016 5,902,319 198,500 56,633 145,102 467,476 5,544,874 2017 5,544,874 12,414 1,152,527 899 4,403,862
2018 4,403,862 1,092,500 24,575 267,602 5,253,335
2019 5,253,335 127,500 35,466 243,104 5,173,197
2020 5,173,197 136,292 19,238 5,290,251
*2020R 5,447,255
2021 5,447,255 1,541,500 76,353 17,564 1,300,000 5,747,544 2022 5,747,544 3,757,600 70,668 38,000 917,515 8,620,297 **2023 8,620,297 321,500 (184,346) 42,678 793,965 7,920,808 2024 7,920,808 505,200 405,057 - 788,016 8,043,049
NOTE: The transfer out of funds went to the Capital Improvements Fund and Debt Service Fund Please refer to Exhibit C-2
For Year Ended June 30, 2024
City of Los Altos
Park Impact Fees

EXHIBIT C-1
Fiscal Beg Fees Interest Transfers FY 23/24 Transfers End Year Bal Collected
Income/
Unrealized
Gain and Loss In Expenditures Out Bal
2006 $ - $ 84,796 $ 960 $ - $ - $ 85,756
2007 85,756 4,467 90,223
2008 90,223 285,018 7,785 383,026
2009 383,026 24,842 8,974 416,842
2010 416,842 154,644 3,372 574,858
2011 574,858 185,795 5,935 47,793 718,795
2012 718,795 59,964 5,108 23,402 760,465
2013 760,465 651,705 1,758 18,336 1,395,592
2014 1,395,592 692,408 8,083 1,684 95,357 1,999,042
2015 1,999,042 249,589 8,819 320,225 1,937,224
2016 1,937,224 41,531 18,924 7,014 518,398 1,472,267
2017 1,472,267 3,867 105,434 114,529 1,256,171
2018 1,256,171 105,359 5,165 346,463 440,000 580,232
2019 580,232 21,053 4,447 70,895 534,837
2020 534,837 20,293 14,355 62,102 4,540 502,843
**2020R 534,292
2021 534,292 139,336 6,871 (833) 651,391 29,940
2022 29,940 227,114 884 - 472,122 (214,184)
***2023 (214,184) 27,569 (12,726) - - (199,341)
2024 (199,341) 43,733 36 - - (155,572)
NOTE: The transfer out of funds went to the Capital Improvements Fund Please refer to Exhibit C-2
City of Los Altos
Traffic Impact Fees
For Year Ended June 30, 2024

EXHIBIT C-2
Park Impact Fees
Amount of Amount of
Impact Fees All Funds Percent
Expended Expended Share of
on Project on Project Impact Fees
Park Impact Fee | Traffic impact Fee
$ 69,359.78 $ 69,359.78 100%
14,390.00 14,390.00 100%
68,923.76 68,923.76 100%
15,570.00 15,570.00 100%
88,997.00 88,997.00 100%
24,901.48 24,901.48 100%
Total $ 282,142 $ 282,142 100%
GO Bond Payment $ 165,925
Community Center Bond Payment $ 622,091
Total $ 788,016
As June 30, 2024, there were no loans made by the Fund
For fiscal year ending June 30, 2024, there were no fee refunds issued by the Fund As of June 30, 2024, there were no incomplete public improvements for which sufficient funds have been collected.

Project
City of Los Altos
For Year Ended June 30, 2024
Park Impact Fee Funds Expended
CF01030 Drainage and Drinking Fountains
CF01028 Designated Picnic Area
Debt Service
CF01032 Hillview Dog Park
CF01034 Grant Park Facility (Electrical, Hot Water, & HVAC) CF01050 Historic Apricot Orchard Irrigation Installation CF01051 Laundry Hook-up for Washer/Dryer at LACC

EXHIBIT C-2
Amount of Amount of
Impact Fees All Funds Percent
Expended Expended Share of
on Project on Project Impact Fees
0%
0%
0%
Total $ - $ - 0%
As June 30, 2024, there were no loans made by the Fund
For fiscal year ending June 30, 2024, there were no fee refunds issued by the Fund As of June 30, 2024, there were no incomplete public improvements for which sufficient funds have been collected.

The fund has negative fund balance
N/A
City of Los Altos
Traffic Impact Fee Funds Expended
For Year Ended June 30, 2024
Project

City of Los Altos
Annual Report
on
June 30, 2025
the Park Impact Fee, the Traffic Impact Fee,
the Public Safety Impact Fee,
for
Fiscal Year Ended
and General Government Impact Fee
ATTACHMENT 1

Exhibit B
Pursuant to City of Los Altos Municipal Code Chapter 3.60 Per City Council Adopted Resolution No. 2024-54
SINGLE-FAMILY $ 12.12 per SQFT
MULTI-FAMILY $ 44.15 per SQFT
Pursuant to City of Los Altos Municipal Code Chapter 3.60 Per City Council Adopted Resolution No. 2024-54
SINGLE-FAMILY $ 1.55 per SQFT
MULTI-FAMILY $ 6.29 per SQFT
COMMERCIAL/ RETAIL $ 10.71 per SQFT
OFFICE $ 9.45 per SQFT
Schedule of Park Impact Fees
Schedule of Traffic Impact Fees
City of Los Altos
Park, Traffic, Public Safety, and General Government Impact Fees For Year Ended June 30, 2025

Exhibit B
Pursuant to City of Los Altos Municipal Code Chapter 3.60 Per City Council Adopted Resolution No. 2024-54
SINGLE-FAMILY $ 0.09 per SQFT
MULTI-FAMILY $ 0.34 per SQFT
COMMERCIAL/ RETAIL $ 1.22 per SQFT
OFFICE $ 1.62 per SQFT
Pursuant to City of Los Altos Municipal Code Chapter 3.60 Per City Council Adopted Resolution No. 2024-54
SINGLE-FAMILY $ 0.13 per SQFT
MULTI-FAMILY $ 0.48 per SQFT
COMMERCIAL/ RETAIL $ 2.14 per SQFT
OFFICE $ 2.86 per SQFT
Schedule of General Government Impact Fees
Schedule of Public Safety Impact Fees

EXHIBIT C-1
Fiscal Beg Fees Interest Transfers FY 24/25 Transfers End Year Bal Collected
Income/Unreali
zed Gain and
Loss In Expenditures Out Bal
2005 $ - $ 30,000 $ 670 $ 6,500 $ 24,170
2006 24,170 60,000 2,757 86,927
2007 86,927 243,000 7,705 337,632
2008 337,632 867,000 23,890 211,780 1,016,742
2009 1,016,742 19,684 73,046 963,380
2010 963,380 468,000 7,868 154,257 1,284,991
2011 1,284,991 132,000 7,784 1,136,867 287,908
2012 287,908 756,000 6,027 100,185 949,750
2013 949,750 3,636,000.00 4,640.00 4,590,390
2014 4,590,390 1,260,000 21,574 5,871,964
2015 5,871,964 62,708 24,420 56,773 5,902,319
2016 5,902,319 198,500 56,633 145,102 467,476 5,544,874 2017 5,544,874 12,414 1,152,527 899 4,403,862
2018 4,403,862 1,092,500 24,575 267,602 5,253,335
2019 5,253,335 127,500 35,466 243,104 5,173,197
2020 5,173,197 136,292 19,238 5,290,251
*2020R 5,447,255
2021 5,447,255 1,541,500 76,353 17,564 1,300,000 5,747,544 2022 5,747,544 3,757,600 70,668 38,000 917,515 8,620,297 **2023 8,620,297 321,500 (184,346) 42,678 793,965 7,920,808 2024 7,920,808 505,200 405,057 - 788,016 8,043,049
2025 8,043,049 11,490,809 750,291 249,613 622,090 19,412,447 NOTE: The transfer out of funds went to the Capital Improvements Fund and Debt Service Fund Please refer to Exhibit C-2
For Year Ended June 30, 2025
City of Los Altos
Park Impact Fees

EXHIBIT C-1
Fiscal Beg Fees Interest Transfers FY 24/25 Transfers End Year Bal Collected
Income/Unreali
zed Gain and
Loss In Expenditures Out Bal
2006 $ - $ 84,796 $ 960 $ - $ - $ 85,756
2007 85,756 4,467 90,223
2008 90,223 285,018 7,785 383,026
2009 383,026 24,842 8,974 416,842
2010 416,842 154,644 3,372 574,858
2011 574,858 185,795 5,935 47,793 718,795
2012 718,795 59,964 5,108 23,402 760,465
2013 760,465 651,705 1,758 18,336 1,395,592
2014 1,395,592 692,408 8,083 1,684 95,357 1,999,042
2015 1,999,042 249,589 8,819 320,225 1,937,224
2016 1,937,224 41,531 18,924 7,014 518,398 1,472,267
2017 1,472,267 3,867 105,434 114,529 1,256,171
2018 1,256,171 105,359 5,165 346,463 440,000 580,232
2019 580,232 21,053 4,447 70,895 534,837
2020 534,837 20,293 14,355 62,102 4,540 502,843
**2020R 534,292
2021 534,292 139,336 6,871 (833) 651,391 29,940
2022 29,940 227,114 884 - 472,122 (214,184)
***2023 (214,184) 27,569 (12,726) - - (199,341)
2024 (199,341) 43,733 36 - - (155,572)
2025 (155,572) 1,030,006 26,681 - - 901,115
NOTE: The transfer out of funds went to the Capital Improvements Fund Please refer to Exhibit C-2
City of Los Altos
Traffic Impact Fees
For Year Ended June 30, 2025

EXHIBIT C-1
Fiscal Beg Fees Interest Transfers FY 24/25 Transfers End Year Bal Collected
Income/Unreali
zed Gain and
Loss In Expenditures Out Bal
2025 - 11,624 154 - - 11,779
NOTE: The transfer out of funds went to the Capital Improvements Fund Please refer to Exhibit C-2
For Year Ended June 30, 2025
City of Los Altos
Public Safety Impact Fees

EXHIBIT C-1
Fiscal Beg Fees Interest Transfers FY 24/25 Transfers End Year Bal Collected
Income/Unreali
zed Gain and
Loss In Expenditures Out Bal
2025 - 16,846 221 - - 17,067
NOTE: The transfer out of funds went to the Capital Improvements Fund Please refer to Exhibit C-2
City of Los Altos
General Governmental Impact Fees
For Year Ended June 30, 2025

EXHIBIT C-2
Amount of Amount of
Impact Fees All Funds Percent
Expended Expended Share of
on Project on Project Impact Fees
$ 249,612.50 $ 249,612.50 100%
Total $ 249,613 $ 249,613 100%
Community Center Bond Payment $ 622,090
Total $ 622,090
As June 30, 2025, there were no loans made by the Fund
For fiscal year ending June 30, 2025, there were no fee refunds issued by the Fund As of June 30, 2025, there were no incomplete public improvements for which sufficient funds have been collected.

Project
City of Los Altos
For Year Ended June 30, 2025
Park Impact Fee Funds Expended
Proj#10014 Grant Park Facility Solar and Battery
Storage Installation
Debt Service

EXHIBIT C-2
Amount of Amount of
Impact Fees All Funds Percent
Expended Expended Share of
on Project on Project Impact Fees
0%
Total $ - $ - 0%
As June 30, 2025, there were no loans made by the Fund
For fiscal year ending June 30, 2025, there were no fee refunds issued by the Fund As of June 30, 2025, there were no incomplete public improvements for which sufficient funds have been collected.

City of Los Altos
Traffic Impact Fee Funds Expended
For Year Ended June 30, 2025
Project
N/A

EXHIBIT C-2
Amount of Amount of
Impact Fees All Funds Percent
Expended Expended Share of
on Project on Project Impact Fees
0%
Total $ - $ - 0%
As June 30, 2025, there were no loans made by the Fund
For fiscal year ending June 30, 2025, there were no fee refunds issued by the Fund As of June 30, 2025, there were no incomplete public improvements for which sufficient funds have been collected.

City of Los Altos
Public Safety Impact Fee Funds Expended
For Year Ended June 30, 2025
Project
N/A

EXHIBIT C-2
Amount of Amount of
Impact Fees All Funds Percent
Expended Expended Share of
Project on Project on Project Impact Fees
N/A 0%
Total $ - $ - 0%
As June 30, 2025, there were no loans made by the Fund
For fiscal year ending June 30, 2025, there were no fee refunds issued by the Fund As of June 30, 2025, there were no incomplete public improvements for which sufficient funds have been collected.

City of Los Altos
General Government Impact Fee Funds Expended
For Year Ended June 30, 2025

City of Los Altos
Five-Year Findings Report
on the Park Impact Fee
Pursuant to Government Code § 66001(d)
(Mitigation Fee Act / AB 1600)
for
Reporting Period Ended
June 30, 2025

City of Los Altos
Park Impact Fee
Five-Year Findings Report
For Reporting Period Ended June 30, 2025

1. Introduction and Legal Authority
This report constitutes the five-year findings for the City of Los Altos Park Impact Fee Fund, prepared pursuant to Government Code section 66001(d) of the Mitigation Fee Act (AB 1600). It is made in connection with the City’s annual AB 1600 report for the fiscal year ended June 30, 2025.

Government Code section 66001(d) requires that, for the fifth fiscal year following the first deposit into each development impact fee account or fund, and every five years thereafter, the local agency make the following findings with respect to that portion of the account or fund remaining unexpended, whether committed or uncommitted:
• Identify the purpose to which the fee is to be put;
• Demonstrate a reasonable relationship between the fee and the purpose for which it is charged; • Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements identified in Government Code section 66001(a)(2); and • Designate the approximate dates on which the funding identified is expected to be deposited into the appropriate account or fund.

1.1 Scope of These Findings
These findings address the City of Los Altos Park Impact Fee imposed under Los Altos Municipal Code Chapter 3.60. Park Impact Fee revenues are accounted for in Fund 027 (the Park Impact Fee Fund). The City accounts for and reports this Fund as a development impact fee fund pursuant to Government Code sections 66000 et seq., including in each annual report filed under Government Code section 66006(b).

Predecessor In-Lieu Fee.

The unexpended balance of Fund 027 as of June 30, 2025 includes park-related revenues collected under the City’s prior park in-lieu fee, which the Chapter 3.60 Park Impact Fee (adopted by Resolution No. 2024- 54) superseded. The findings in this report are made with respect to the entire unexpended balance of the Fund, without regard to whether individual deposits were collected under the current Park Impact Fee or the prior in-lieu fee.

Conservative Scope.

Government Code section 66001(d) is ambiguous as to whether five-year findings are required for the entire unexpended balance of a development impact fee fund or only for that portion of the balance held more than five years as of the close of the fiscal year. Consistent with the conservative approach recommended by the League of California Cities (The Mitigation Fee Act’s Five-Year Findings Requirement: Beware Costly Pitfalls (2022)) following Walker v. City of San Clemente (2015) 239 Cal.App.4th 1350, these findings are made on the entire unexpended balance of the Park Impact Fee Fund as of June 30, 2025 ($19,412,447), without regard to when individual deposits were made. This conservative scope is intended to fully satisfy Government Code section 66001(d) under any reasonable interpretation of the statute.

City of Los Altos
Park Impact Fee

2. Five-Year Fund Activity Summary
Fiscal Years Ended June 30, 2021 through June 30, 2025
Fiscal
Year
Beg.

Balance
Fees
Collected
Interest
Income /
Unrealized
Gain & Loss
Transfers
In
FY 24/25
Expenditures
Transfers
Out End Balance
2021 5,447,255 1,541,500 76,353 - 17,564 1,300,000 5,747,544 2022 5,747,544 3,757,600 70,668 - 38,000 917,515 8,620,297 **2023 8,620,297 321,500 (184,346) - 42,678 793,965 7,920,808 2024 7,920,808 505,200 405,057 - - 788,016 8,043,049
2025 8,043,049 11,490,809 750,291 - 249,613 622,090 19,412,447 Totals 17,616,609 1,118,023 - 347,855 4,421,586
NOTE: Transfers out of the Park Impact Fee Fund during this period went to the Capital Improvements Fund and the Debt Service Fund. Refer to Exhibit C-2 of the FY 2024-25 annual report for detail on expenditures and debt service.

Total inflows over the five-year period: $17,616,609 in fees collected and $1,118,023 in interest and unrealized gains/losses. Total outflows: $347,855 in direct project expenditures and $4,421,586 in transfers out for debt service on the Community Center Bond and capital improvements ($4,769,441 total).

City of Los Altos
Park Impact Fee

3. Current Fee Schedule and Aging of Unexpended Balance For Year Ended June 30, 2025

3.1 Authority and Adoption
The Park Impact Fee is imposed pursuant to Los Altos Municipal Code Chapter 3.60. The current fee schedule was adopted by the City Council under Resolution No. 2024-54.

3.2 Current Fee Schedule
The Park Impact Fee is charged on new residential development based on building square footage:
• Single-Family: $12.12 per square foot
• Multi-Family: $44.15 per square foot

3.3 Aging of Unexpended Balance (FIFO Basis)
The table below presents the aging of the Park Impact Fee Fund unexpended balance as of June 30, 2025, applying first-in, first-out (FIFO) treatment to fund outflows. Under FIFO, the oldest dollars in the Fund are deemed expended first.

Source of Unexpended Funds (FIFO Basis) Amount Share
Funds collected prior to FY 2020-21 (held more than five years as of 6/30/2025) $ 677,815 3.5%
Funds collected during FY 2020-21 through FY 2024-25 (held five years or less) $ 18,734,632 96.5%
Total Unexpended Balance as of June 30, 2025 $ 19,412,447 100.0% As of June 30, 2025, approximately $677,815 of the unexpended balance represents funds collected prior to fiscal year 2020-21 — that is, funds held more than five years. The remaining $18,734,632 was collected during fiscal years 2020-21 through 2024-25 and accordingly is not yet within the five-year window. The findings in Sections 4 and 5 address the entire unexpended balance and necessarily encompass the smaller aged portion.

City of Los Altos
Park Impact Fee

4. Incomplete Public Improvements Funded by the Park Impact Fee Per Adopted FY 2025-26 through FY 2029-30 Capital Improvement Program The following thirteen park and recreation capital projects are appropriated from the Park Impact Fee Fund in the City’s adopted Five-Year Capital Improvement Program. Together, these projects constitute the incomplete public improvements to which the unexpended balance of the Fund is committed, satisfying the requirement of Government Code section 66001(a)(2) and (d)(1)(C).

Project # Project Name
Total Committed
Funding per Adopted FY
2025-26 through FY
2029-30 CIP
10008 Community Center Facility Improvements (EOC Retrofit component) 4,000,000 20002 Downtown Park Space with Parking 2,288,500
40010 Hillview/McKenzie Dog Parks 1,278,400
40004 Grant Park Facility (Electrical, Hot Water, & HVAC) 1,178,000 40008 Shoup Park Playground 620,000
40009 Grant Playground 620,000
10014 Grant Park Facility Solar and Battery Storage 275,000 40007 Grant & Shoup Pathway Rehabilitation 285,000
40006 Community Center Café 165,000
40005 Hillview Fitness Equipment 145,000
40003 Grant Park Fence Replacement 90,000
10002 San Antonio Club Upgrades 85,000
40002 Civic Center Parking (Park share) 50,000
Total – Park Impact Fee $ 11,079,900
Source: City of Los Altos adopted Five-Year Capital Improvement Program, FY 2025-26 through FY 2029-30, Park Impact Fee funding source (Fund 027). Project numbers reference the City’s Tyler ERP project identifiers.

Park Impact Fee Nexus – Project #10008. The Community Center Facility Improvements project (#10008) consists of capital improvements to the Los Altos Community Center, a recreation facility owned and operated by the City for the benefit of City residents, including residents of new residential development. The improvements funded by the Park Impact Fee under this project include facility renovations and infrastructure upgrades serving the recreational use of the Community Center. The Emergency Operations Center (EOC) retrofit component represents resiliency improvements to the same recreation facility that ensure its continued operation as a community gathering and recreation resource, including under emergency conditions, and is funded by the Park Impact Fee only to the extent attributable to that recreation facility component.

City of Los Altos
Park Impact Fee

5. Five-Year Findings
Pursuant to Government Code § 66001(d)
Based on the analysis presented in Sections 1 through 4, the City of Los Altos hereby makes the following findings with respect to the unexpended balance of the Park Impact Fee Fund as of June 30, 2025:

Finding 1. Purpose to Which the Fee Is to Be Put
The Park Impact Fee is imposed for the purpose of mitigating the impacts of new residential development on the City’s parks, recreational facilities, and related public improvements. Fee revenues are dedicated to funding the acquisition, development, expansion, rehabilitation, and improvement of parkland and park and recreation facilities, including:
• Acquisition of land for new or expanded parks;
• Construction, expansion, and renovation of park and recreation facilities (including playgrounds, sports fields, courts, trails, restrooms, and community/recreation centers); • Site improvements such as lighting, irrigation, landscaping, parking, accessibility, and security infrastructure;
• Energy and sustainability improvements to park and recreation facilities; and • Debt service on bonds or other financing used to construct eligible park and recreation capital facilities.

Finding 2. Reasonable Relationship Between the Fee and Its Purpose A reasonable relationship continues to exist between the Park Impact Fee and the purpose for which it is charged. New residential development increases the resident population of the City, which in turn increases demand for parkland and park and recreation facilities. Absent the Park Impact Fee, the City would be unable to maintain its existing level of park service as the population grows from new development.

The fee is imposed on a per-square-foot basis on new single-family and multi-family residential construction, which is a reasonable proxy for the additional residents generated by each unit. Fee proceeds may only be expended on park and recreation capital improvements that serve the residents of new development, consistent with Government Code section 66006(c). The reasonable relationship between the new development on which the fee is imposed, the need for additional park and recreation facilities, and the use of fee proceeds was established in the nexus analysis supporting the adoption of the fee under Chapter 3.60 of the Los Altos Municipal Code.

Reexamination of Continuing Need.

In making these findings, the City Council has reexamined the continuing need for park and recreation capital improvements caused by new residential development in the City, consistent with the requirements of Walker v. City of San Clemente (2015) 239 Cal.App.4th 1350. The City Council finds that the continuing need is confirmed by:
• Ongoing residential development activity in the City, including residential building permits issued during fiscal years 2020-21 through 2024-25 generating $17,616,609 in Park Impact Fee revenue;

• The residential development capacity identified in the City’s adopted General Plan and 2023-2031 Housing Element, which projects continued population growth and resulting demand for park and recreation services;
• The City’s adopted Five-Year Capital Improvement Program (FY 2025-26 through FY 2029-30), which identifies thirteen specific park and recreation capital improvement projects required to serve existing and projected residents, including new playgrounds, dog park facilities, pathway rehabilitation, energy and accessibility upgrades, and expansion of community recreation space; and
• The fact that the City’s current park acreage per capita and recreation facility inventory have not increased materially since adoption of the Park Impact Fee, while residential development and population have continued to grow, confirming that the demand for park and recreation facilities driven by new development persists.

Based on this reexamination, the City Council finds that the continuing need for the park and recreation improvements to be financed by the Park Impact Fee exists, and that the original nexus determinations supporting Chapter 3.60 remain valid as applied to the thirteen identified projects.

Finding 3. Sources and Amounts of Funding Anticipated to Complete Financing of Incomplete Improvements
Of the $19,412,447 unexpended balance of the Park Impact Fee Fund as of June 30, 2025:

Application of Unexpended Balance as of June 30, 2025 Amount Share Appropriated to specific projects in adopted FY 2025-26 through FY 2029-30 CIP (13 named projects) $ 11,079,900 57.1%
Held against continuing park and recreation improvement needs from new residential development, and as funding reserve for the thirteen identified projects
$ 8,332,547 42.9%
Total Unexpended Balance $ 19,412,447 100.0%
The thirteen capital projects identified in Section 4 represent total programmed funding of $11,079,900 from the Park Impact Fee Fund under the City’s adopted Five-Year Capital Improvement Program. To the extent the total cost of these projects exceeds the Park Impact Fee funding allocated, the remainder of project financing is anticipated from the following sources, as identified in each project’s CIP funding stack:
• Future Park Impact Fee collections, deposited on an ongoing basis as residential building permits are issued through FY 2029-30 and thereafter;
• Interest earnings and unrealized gains/losses on the Fund balance, recorded as earned each fiscal year;
• General Fund and other City fund transfers, as appropriated through the annual budget; • Grants and other contributions, as awarded.

Planned Use of the Remaining $8,332,547.

The unexpended balance of the Park Impact Fee Fund as of June 30, 2025 exceeds the $11,079,900 currently programmed to the thirteen identified projects by $8,332,547. The City Council finds that this remaining portion is held for the following identified purposes, each consistent with the purpose of the Park Impact Fee under Los Altos Municipal Code Chapter 3.60:

• Funding reserve for the thirteen identified projects. Several of the identified projects, including the Downtown Park Space with Parking (#20002) and the Community Center Facility Improvements (#10008), remain in design or early procurement phases and are subject to construction cost escalation, design refinement, and contingencies. A portion of the remaining balance is held as a reserve against such cost growth on the projects already identified in Section 4. • Continuing need from ongoing residential development. The City’s adopted General Plan and 2023-2031 Housing Element project continued residential development through and beyond the current CIP horizon. The Park Impact Fee revenues attributable to such development will continue to generate need for additional park and recreation capital improvements (including potential park acquisition, expanded recreation facilities, and additional playground and accessibility improvements) to maintain the City’s adopted level of park service. The remaining balance is held against this continuing nexus pipeline.
• Future CIP appropriations. Specific additional park and recreation capital improvements responsive to the above will be identified and appropriated through the City’s annual CIP update process, as required by Government Code section 66002. Each annual CIP update will include identification of additional incomplete public improvements to be financed from the Park Impact Fee Fund consistent with these findings.

Finding 4. Approximate Dates of Deposit
Funding Deposit Schedule.

The funding identified in Finding 3 is anticipated to be deposited into the Park Impact Fee Fund or applied to eligible park and recreation capital improvements on the following approximate schedule:
• Park Impact Fees: collected and deposited on an ongoing basis as residential building permits are issued during fiscal years 2025-26 through 2029-30 and thereafter, subject to market conditions and development activity;
• Interest earnings and unrealized gains/losses: recorded on an ongoing basis as earned in each fiscal year;
• General Fund transfers and grant proceeds: as appropriated by the City Council through the annual budget and CIP processes during fiscal years 2025-26 through 2029-30.

Approximate Project Construction Schedule.

Construction of the incomplete public improvements identified in the project table is anticipated to commence on the following approximate schedule, as established in the City’s adopted FY 2025-26 through FY 2029-30 CIP:
• Currently under construction or in active procurement during FY 2025-26 (encumbrances executed): Shoup Park Playground (#40008) and Grant Playground (#40009); • Commencement anticipated during FY 2025-26: Community Center Facility Improvements (#10008); Hillview/McKenzie Dog Parks (#40010); Grant Park Facility Solar and Battery Storage (#10014); Grant Park Facility Electrical/HVAC (#40004); Grant & Shoup Pathway Rehabilitation (#40007); Community Center Café (#40006); Hillview Fitness Equipment (#40005); Grant Park Fence Replacement (#40003); San Antonio Club Upgrades (#10002); Civic Center Parking (#40002);

• Design phase in FY 2025-26 with construction commencement anticipated in FY 2026-27 or later:

Downtown Park Space with Parking (#20002).

Actual commencement dates may vary based on design completion, environmental clearance, procurement timing, and project sequencing. The City will update construction commencement timing through subsequent annual AB 1600 reports and the annually-adopted CIP.

Other Required Disclosures
• Loans. As of June 30, 2025, there were no loans made by the Park Impact Fee Fund. • Refunds. For the fiscal year ended June 30, 2025, no fee refunds were issued from the Park Impact Fee Fund.
• Cumulative Expenditures and Inter-Fund Transfers (FY 2020-21 – FY 2024-25). During the fiveyear period FY 2020-21 through FY 2024-25, the Park Impact Fee Fund made the following expenditures and inter-fund transfers, all for purposes consistent with the Park Impact Fee under Los Altos Municipal Code Chapter 3.60:
• Community Center Bond debt service (transfers to Debt Service Fund): $4,421,586 cumulative across fiscal years 2020-21 through 2024-25. These transfers funded debt service on the bonds that financed the construction and renovation of the Los Altos Community Center, a park and recreation facility serving residents of new development. • Grant Park Facility Solar and Battery Storage Installation (Project #10014): $249,612.50 direct expenditure in FY 2024-25, constituting 100% of project funding. This project provides on-site renewable energy and resiliency infrastructure for the Grant Park recreation facility.
• Capital Improvements Fund expenditures: $98,242 cumulative expended from the Fund through the Capital Improvements Fund during fiscal years 2020-21 through 2022-23 ($17,564 in FY 2020-21, $38,000 in FY 2021-22, and $42,678 in FY 2022-23). These amounts are outflows that reduced the Fund balance and are reported in the Expenditures column of the Five-Year Fund Activity Summary.
• Total cumulative outflow (expenditures and transfers out) during the five-year period:
$4,769,441, comprising $347,855 in direct project expenditures and $4,421,586 in transfers out. Refer to Exhibit C-2 of the City’s annual AB 1600 report for additional detail. • Sufficient Funds / Construction Commencement (§ 66001(e)). As of June 30, 2025, the City has determined that no incomplete public improvement funded by the Park Impact Fee has had sufficient Park Impact Fee funds collected to complete the financing of that improvement.

Accordingly, no designation of an approximate construction commencement date under Government Code section 66001(e) is required at this time. The City will continue to monitor each project’s funding status through its annual AB 1600 reporting and will make any required Government Code section 66001(e) designation within 180 days if and when sufficient funds are collected for any individual incomplete improvement.
• Construction Commencement (§ 66006(b)(1)(F)). Construction of each of the thirteen incomplete public improvements identified in the project table is anticipated to commence on the schedule described in Finding 4 above, in accordance with the adopted FY 2025-26 through FY 2029-30 CIP.
• Fiscal Year 2024-25 Expenditures. During fiscal year 2024-25, the City directly expended $249,612.50 of Park Impact Fees on the Grant Park Facility Solar and Battery Storage Installation

project (Project #10014), constituting 100% of the project funding for that project. Additionally, the City made transfers of $622,090 from the Fund to the Debt Service Fund for the Community Center Bond Payment.

Conclusion
Based on the foregoing, the City Council of the City of Los Altos finds that:
• The purpose of the Park Impact Fee, as identified in Finding 1, remains valid and continues to serve the community;
• A reasonable relationship continues to exist between the Park Impact Fee, the new residential development on which it is imposed, and the use of fee proceeds for park and recreation capital improvements that serve the residents of such new development, as set forth in Finding 2; • The sources and amounts of funding anticipated to complete the financing of the incomplete public improvements identified in Section 4 are as set forth in Finding 3; and • The approximate dates of deposit of such funding are as set forth in Finding 4.

These findings are made in connection with the City’s annual AB 1600 report for the fiscal year ended June 30, 2025, and are intended to satisfy the requirements of Government Code section 66001(d). These findings will be presented to the City Council for adoption by resolution concurrent with the City’s annual AB 1600 report.

City of Los Altos
Five-Year Findings Report
on the Traffic Impact Fee
Pursuant to Government Code § 66001(d)
(Mitigation Fee Act / AB 1600)
for
Reporting Period Ended
June 30, 2025

City of Los Altos
Traffic Impact Fee
Five-Year Findings Report
For Reporting Period Ended June 30, 2025

1. Introduction and Legal Authority
This report constitutes the five-year findings for the City of Los Altos Traffic Impact Fee Fund, prepared pursuant to Government Code section 66001(d) of the Mitigation Fee Act (AB 1600). It is made in connection with the City’s annual AB 1600 report for the fiscal year ended June 30, 2025.

Government Code section 66001(d) requires that, for the fifth fiscal year following the first deposit into each development impact fee account or fund, and every five years thereafter, the local agency make the following findings with respect to that portion of the account or fund remaining unexpended, whether committed or uncommitted:
• Identify the purpose to which the fee is to be put;
• Demonstrate a reasonable relationship between the fee and the purpose for which it is charged; • Identify all sources and amounts of funding anticipated to complete financing of incomplete improvements identified in Government Code section 66001(a)(2); and • Designate the approximate dates on which the funding identified is expected to be deposited into the appropriate account or fund.

1.1 Scope of These Findings
These findings address the City of Los Altos Traffic Impact Fee imposed under Los Altos Municipal Code Chapter 3.60. Traffic Impact Fee revenues are accounted for in the Traffic Impact Fee Fund (Fund 026).

The City accounts for and reports this Fund as a development impact fee fund pursuant to Government Code sections 66000 et seq., including in each annual report filed under Government Code section 66006(b).

Conservative Scope.

Government Code section 66001(d) is ambiguous as to whether five-year findings are required for the entire unexpended balance of a development impact fee fund or only for that portion of the balance held more than five years as of the close of the fiscal year. Consistent with the conservative approach recommended by the League of California Cities (The Mitigation Fee Act’s Five-Year Findings Requirement: Beware Costly Pitfalls (2022)) following Walker v. City of San Clemente (2015) 239 Cal.App.4th 1350, these findings are made on the entire unexpended balance of the Traffic Impact Fee Fund as of June 30, 2025 ($901,115), without regard to when individual deposits were made. As described in Section 3.3, no portion of that balance has in fact been held more than five years. This conservative scope is intended to fully satisfy Government Code section 66001(d) under any reasonable interpretation of the statute.

City of Los Altos
Traffic Impact Fee

2. Five-Year Fund Activity Summary
Fiscal Years Ended June 30, 2021 through June 30, 2025
Fiscal
Year
Beg.

Balance
Fees
Collected
Interest Income
/ Unrealized
Gain & Loss
Transfers
In Expenditures Transfers Out End Balance
2021 534,292 139,336 6,871 – (833) 651,391 29,940
2022 29,940 227,114 884 – – 472,122 (214,184)
2023 (214,184) 27,569 (12,726) – – – (199,341)
2024 (199,341) 43,733 36 – – – (155,572)
2025 (155,572) 1,030,006 26,681 – – – 901,115
Totals 1,467,758 21,746 – (833) 1,123,513
NOTE: Transfers out of the Traffic Impact Fee Fund during this period went to the Capital Improvements Fund. Refer to Exhibit C-1 and Exhibit C-2 of the FY 2024-25 annual AB 1600 report for detail. Figures are presented as reported by the City; amounts in parentheses are negative.

Over the five-year period, the Fund recorded $1,467,758 in fees collected and $21,746 in net interest and unrealized gains/losses, against $1,123,513 in transfers out to the Capital Improvements Fund and a net expenditure credit of ($833) recorded in FY 2020-21 (no positive direct project expenditures were made during the period). As a result of the timing of transfers out relative to fee collections, the Fund carried a negative balance at the close of fiscal years 2021-22 through 2023-24. The Fund was restored to a positive unexpended balance of $901,115 as of June 30, 2025, following $1,030,006 in Traffic Impact Fees collected during fiscal year 2024-25.

City of Los Altos
Traffic Impact Fee

3. Current Fee Schedule and Aging of Unexpended Balance For Year Ended June 30, 2025

3.1 Authority and Adoption
The Traffic Impact Fee is imposed pursuant to Los Altos Municipal Code Chapter 3.60. The current fee schedule was adopted by the City Council under Resolution No. 2024-54.

3.2 Current Fee Schedule
The Traffic Impact Fee is charged on new development based on building square footage and land use type:
• Single-Family: $1.55 per square foot
• Multi-Family: $6.29 per square foot
• Commercial / Retail: $10.71 per square foot
• Office: $9.45 per square foot

3.3 Aging of Unexpended Balance (FIFO Basis)
The table below presents the aging of the Traffic Impact Fee Fund unexpended balance as of June 30, 2025, applying first-in, first-out (FIFO) treatment to fund outflows. Under FIFO, the oldest dollars in the Fund are deemed expended first.

Source of Unexpended Funds (FIFO Basis) Amount Share
Funds collected prior to FY 2020-21 (held more
than five years as of 6/30/2025) $ 0 0.0%
Funds collected during FY 2020-21 through FY
2024-25 (held five years or less) $ 901,115 100.0%
Total Unexpended Balance as of June 30, 2025 $ 901,115 100.0% Because the Traffic Impact Fee Fund was fully drawn down — reaching a negative balance — at the close of fiscal years 2021-22 through 2023-24, every dollar collected before fiscal year 2024-25 is, under FIFO, deemed to have been expended. Accordingly, no portion of the $901,115 unexpended balance as of June 30, 2025 represents funds held more than five years; the entire unexpended balance is attributable to Traffic Impact Fees collected during fiscal year 2024-25. The findings in Sections 4 and 5 nonetheless address the entire unexpended balance on the conservative whole-balance basis described in Section 1.1.

City of Los Altos
Traffic Impact Fee

4. Incomplete Public Improvements Funded by the Traffic Impact Fee Per Adopted FY 2025-26 through FY 2029-30 Capital Improvement Program The following street and circulation capital project is appropriated from the Traffic Impact Fee Fund in the City’s adopted Five-Year Capital Improvement Program. This project constitutes the incomplete public improvement to which the unexpended balance of the Fund is committed, satisfying the requirement of Government Code section 66001(a)(2) and (d)(1)(C).

Project # Project Name
Total Committed TIF Funding per
Adopted FY 2025-26 through FY
2029-30 CIP
70010 San Antonio Road Complete Street Project $ 283,000 Total – Traffic Impact Fee $ 283,000
Source: City of Los Altos adopted Five-Year Capital Improvement Program, FY 2025-26 through FY 2029-30, Traffic Impact Fee funding source (Fund 026). Project numbers reference the City’s Tyler ERP project identifiers.

Traffic Impact Fee nexus – Project #70010. The San Antonio Road Complete Street Project is a transportation capital improvement that reconfigures San Antonio Road to provide designated space for each travel mode, separating pedestrians and cyclists from motor vehicle traffic, reducing conflicts among road users, and closing an existing connectivity gap in the City’s circulation network. The improvement enhances the safety and capacity of the City’s transportation network to serve the additional travel demand generated by new development, consistent with the purpose of the Traffic Impact Fee under Los Altos Municipal Code Chapter 3.60. The Traffic Impact Fee funds $283,000 of the project; the remaining project cost is funded by a One Bay Area Grant (OBAG) of $1,120,000.

City of Los Altos
Traffic Impact Fee

5. Five-Year Findings
Pursuant to Government Code § 66001(d)
Based on the analysis presented in Sections 1 through 4, the City of Los Altos hereby makes the following findings with respect to the unexpended balance of the Traffic Impact Fee Fund as of June 30, 2025:

Finding 1. Purpose to Which the Fee Is to Be Put
The Traffic Impact Fee is imposed for the purpose of mitigating the impacts of new development on the City’s transportation and circulation system. Fee revenues are dedicated to funding the construction, expansion, rehabilitation, and improvement of transportation capital facilities serving new development, including:
• Street and roadway improvements, including resurfacing, reconstruction, and capacity or operational improvements;
• Intersection, signalization, and traffic-control improvements; • Bicycle, pedestrian, and other active-transportation and complete-streets improvements; • Transportation safety improvements, including Safe Routes to School and neighborhood traffic management; and
• Related transportation infrastructure and appurtenances necessary to maintain the City’s adopted level of service as development occurs.

Finding 2. Reasonable Relationship Between the Fee and Its Purpose A reasonable relationship continues to exist between the Traffic Impact Fee and the purpose for which it is charged. New residential and non-residential development generates additional vehicle trips and travel demand, which increases the burden on the City’s streets, intersections, and circulation network. Absent the Traffic Impact Fee, the City would be unable to maintain its existing level of transportation service as travel demand grows from new development.

The fee is imposed on a per-square-foot basis on new single-family, multi-family, commercial/retail, and office development, which is a reasonable proxy for the additional trips generated by each land use type.

Fee proceeds may only be expended on transportation capital improvements that serve new development, consistent with Government Code section 66006(c). The reasonable relationship between the new development on which the fee is imposed, the need for transportation improvements, and the use of fee proceeds was established in the nexus analysis supporting the adoption of the fee under Chapter 3.60 of the Los Altos Municipal Code.

Reexamination of Continuing Need.

In making these findings, the City Council has reexamined the continuing need for transportation capital improvements caused by new development in the City, consistent with the requirements of Walker v. City of San Clemente (2015) 239 Cal.App.4th 1350. The City Council finds that the continuing need is confirmed by:

• Ongoing development activity in the City, including building permits issued during fiscal years 2020-21 through 2024-25 generating $1,467,758 in Traffic Impact Fee revenue; • The development capacity identified in the City’s adopted General Plan and 2023-2031 Housing Element, which projects continued residential and non-residential development and resulting demand on the transportation network;
• The City’s adopted Five-Year Capital Improvement Program (FY 2025-26 through FY 2029-30), which identifies the Traffic Impact Fee–funded San Antonio Road Complete Street Project (#70010) within a broader program of street, traffic, circulation, and bicycle/pedestrian capital improvements required to serve existing and projected development (see Section 4); and • The continued growth in travel demand on City streets and intersections relative to existing transportation capacity, confirming that the demand for transportation improvements driven by new development persists.

Based on this reexamination, the City Council finds that the continuing need for the transportation improvements to be financed by the Traffic Impact Fee exists, and that the original nexus determinations supporting Chapter 3.60 remain valid as applied to the project identified in Section 4.

Finding 3. Sources and Amounts of Funding Anticipated to Complete Financing of Incomplete Improvements
Of the $901,115 unexpended balance of the Traffic Impact Fee Fund as of June 30, 2025:

Application of Unexpended Balance as of June 30, 2025 Amount Share Appropriated to the Traffic Impact Fee–funded project in the adopted FY 2025-26 through FY 2029-30 CIP (Project #70010) $ 283,000 31.4% Held against continuing transportation improvement needs from new development, and as funding reserve for the identified project and future CIP appropriations
$ 618,115 68.6%
Total Unexpended Balance $ 901,115 100.0%
The Traffic Impact Fee–funded project identified in Section 4 represents $283,000 of programmed Traffic Impact Fee funding under the City’s adopted Five-Year Capital Improvement Program. The total cost of that project exceeds the Traffic Impact Fee funding allocated; the remainder of project financing has been secured through a One Bay Area Grant (OBAG) of $1,120,000, and any further project financing is anticipated from the following sources, as identified in the project’s CIP funding stack:
• Future Traffic Impact Fee collections, deposited on an ongoing basis as building permits are issued through FY 2029-30 and thereafter;
• Interest earnings and unrealized gains/losses on the Fund balance, recorded as earned each fiscal year;
• Gas Tax, SB 1, Measure B, TDA, VRF, and other restricted transportation revenues, as appropriated through the annual budget;
• General Fund and other City fund transfers, as appropriated through the annual budget; and • Grants and other contributions, as awarded.

Planned Use of the Unexpended Balance.

The City Council finds that the unexpended balance of the Traffic Impact Fee Fund as of June 30, 2025 is held for the following identified purposes, each consistent with the purpose of the Traffic Impact Fee under Los Altos Municipal Code Chapter 3.60:
• Identified CIP project. Funding source for the transportation capital project identified in Section 4, which is in design or early procurement and is subject to cost escalation, design refinement, and contingencies;
• Continuing need from ongoing development. The City’s adopted General Plan and 2023-2031 Housing Element project continued development through and beyond the current CIP horizon.

Traffic Impact Fee revenues attributable to such development will continue to generate need for additional transportation capital improvements to maintain the City’s adopted level of transportation service. A portion of the balance is held against this continuing nexus pipeline; • Future CIP appropriations. Specific additional transportation capital improvements responsive to the above will be identified and appropriated through the City’s annual CIP update process, as required by Government Code section 66002. Each annual CIP update will include identification of additional incomplete public improvements to be financed from the Traffic Impact Fee Fund consistent with these findings.

Finding 4. Approximate Dates of Deposit
Funding Deposit Schedule.

The funding identified in Finding 3 is anticipated to be deposited into the Traffic Impact Fee Fund or applied to eligible transportation capital improvements on the following approximate schedule:
• Traffic Impact Fees: collected and deposited on an ongoing basis as building permits are issued during fiscal years 2025-26 through 2029-30 and thereafter, subject to market conditions and development activity;
• Interest earnings and unrealized gains/losses: recorded on an ongoing basis as earned in each fiscal year;
• Restricted transportation revenues, General Fund transfers, and grant proceeds: as appropriated by the City Council through the annual budget and CIP processes during fiscal years 2025-26 through 2029-30.

Approximate Project Construction Schedule.

Construction of the incomplete public improvement identified in Section 4 is anticipated to commence on the approximate schedule established in the City’s adopted FY 2025-26 through FY 2029-30 CIP, as follows:
• San Antonio Road Complete Street Project (#70010): commencement anticipated during fiscal year 2026-27, with the $283,000 Traffic Impact Fee share programmed in the FY 2026-27 budget.

Actual commencement dates may vary based on design completion, environmental clearance, procurement timing, and project sequencing. The City will update construction commencement timing through subsequent annual AB 1600 reports and the annually-adopted CIP.

Other Required Disclosures
• Loans. As of June 30, 2025, there were no loans made by the Traffic Impact Fee Fund.

• Refunds. For the fiscal year ended June 30, 2025, no fee refunds were issued from the Traffic Impact Fee Fund.
• Cumulative Expenditures and Inter-Fund Transfers (FY 2020-21 – FY 2024-25). During the five-year period FY 2020-21 through FY 2024-25, the Traffic Impact Fee Fund made transfers out totaling $1,123,513 to the Capital Improvements Fund ($651,391 in FY 2020-21 and $472,122 in FY 2021-22) for street, traffic, and circulation capital improvements consistent with the Traffic Impact Fee under Los Altos Municipal Code Chapter 3.60. The Fund recorded a net expenditure credit of ($833) in FY 2020-21 (a minor reversal of prior project costs) and made no other (positive) direct project expenditures during the five-year period. Refer to Exhibit C-2 of the City’s annual AB 1600 report for additional detail.
• Prior Negative Fund Balance. As a result of the timing of transfers to the Capital Improvements Fund relative to fee collections, the Traffic Impact Fee Fund carried a negative fund balance at the close of fiscal years 2021-22 ($(214,184)), 2022-23 ($(199,341)), and 2023-24 ($(155,572)). The Fund was restored to a positive unexpended balance of $901,115 as of June 30, 2025 following fiscal year 2024-25 fee collections. Because the balance was fully drawn down during this period, no unexpended funds have been held more than five years. • Sufficient Funds / Construction Commencement (§ 66001(e)). As of June 30, 2025, the City has determined that the Traffic Impact Fee Fund had not collected sufficient Traffic Impact Fee revenues to complete the total financing of the incomplete public improvement identified in Section 4 (the San Antonio Road Complete Street Project, #70010), the total cost of which is also financed by a One Bay Area Grant. Accordingly, no designation of an approximate construction commencement date under Government Code section 66001(e) is required at this time. The approximate construction commencement date for the project (fiscal year 2026-27) is in any event identified through the City’s adopted Five-Year Capital Improvement Program, consistent with Government Code section 66002. The City will continue to monitor the project’s funding status through its annual AB 1600 reporting and will make any required Government Code section 66001(e) designation within 180 days if and when sufficient Traffic Impact Fee funds are collected to complete financing of the improvement.
• Construction Commencement (§ 66006(b)(1)(F)). Construction of the incomplete public improvement identified in Section 4 (the San Antonio Road Complete Street Project, #70010) is anticipated to commence during fiscal year 2026-27, in accordance with the adopted FY 2025-26 through FY 2029-30 CIP.
• Fiscal Year 2024-25 Activity. During fiscal year 2024-25, the City made no direct expenditures of Traffic Impact Fees and no transfers out of the Fund. The increase in the Fund balance during the year is attributable to $1,030,006 in Traffic Impact Fees collected and $26,681 in interest income and unrealized gains.

Conclusion
Based on the foregoing, the City Council of the City of Los Altos finds that:
• The purpose of the Traffic Impact Fee, as identified in Finding 1, remains valid and continues to serve the community;

• A reasonable relationship continues to exist between the Traffic Impact Fee, the new development on which it is imposed, and the use of fee proceeds for transportation capital improvements that serve such new development, as set forth in Finding 2;
• The sources and amounts of funding anticipated to complete the financing of the incomplete public improvement identified in Section 4 are as set forth in Finding 3; and • The approximate dates of deposit of such funding are as set forth in Finding 4.

These findings are made in connection with the City’s annual AB 1600 report for the fiscal year ended June 30, 2025, and are intended to satisfy the requirements of Government Code section 66001(d). These findings will be presented to the City Council for adoption by resolution concurrent with the City’s annual AB 1600 report.

Total Valuation Fee
$1.00 - $3,000.00 $ 251.87
$3,001.00 - $25,000.00
First $3,000 $ 251.87
Each Additional $1,000 or fraction therof $ 32.49
$25,001.00 - $50,000.00
First $25,000 $ 966.65
Each Additional $1,000 or fraction therof $ 33.46
$50,001 - $100,000.00
First $50,000 $ 1,803.36
Each Additional $1,000 or fraction therof $ 18.19
$100,001.00 - $500,000.00
First $100,000 $ 3,640.86
Each Additional $1,000 or fraction therof $ 7.95
$500,001.00 - $1,000,000.00
First $500,000 $ 7,915.71
Each Additional $1,000 or fraction therof $ 12.92
$1,000,001.00 and up
Fisr $1,000,000 $ 14,970.27
Each Additional $1,000 or fraction therof $ 6.46
ADU Building Permit $ -
City of Los Altos
Fee Schedule
FY2026-27

DEVELOPMENT SERVICES

BUILDING DIVISION
Building Permit
Valuation based on price per square foot of construction. Minimum valuation for all residential and

$1.00 - $3,000.00 $ 213.91
$3,001.00 - $25,000.00
First $3,000 $ 408.86
Each Additonal $1,000 or fraction therof $ 25.35
$25,001.00 - $50,000.00
First $25,000 $ 966.65
Each Additional $1,000 or fraction therof $ 26.75
$50,001.00 - $100,000.00
First $50,000 $ 1,635.43
Each Additional $1,000 or fraction therof $ 55.02
$100,001.00 and up 1.62%
ADU Electrical, Mechanical or Plumbing Permit $ -
ADU Plan Check $ -
Building Plan Check 135.00%
Energy Plan Check (Title 24) 25.00%
Electrical, Mechanical or Plumbing Permit
Plan Check

Residential
15kw or less $ 314.57
15 kw - 50kw $ 314.57
Per kw above 15kw $ 10.48
51kw - 250kw $ 524.28
Per kw above 50kw $ 5.24
250+ kw $ 524.28
Per kw above 250kw $ 5.24
Commercial
50kw or less $ 314.57
50kw - 250kw $ 524.28
Per kw above 50kw $ 5.22
250+ kw $ 524.28
Per kw above 250kw $ 5.00
Water Heater $ 157.28
Heat Pump (HVAC) $ 300.00
Water Line/ Re-Pipe $ 316.67
Electric Vehicle (EV) Charging Station $ 314.57
Energy Storage System $ 419.43
Solar/Photovoltain Permit
Standalone Building Permits

Single Family $ 244.31
Commercial/ Mixed-Use/ Multifamily $ 373.29
Re-inspection Fee $ 260.04
Inspections Outside of Normal Business Hours
(Minimum Charge of 2 hours) $ 603.98
Each Additional Hour $ 301.98
Expired Permit Fees Based on Original Permit Fees
Penalty for Expired Permits
0 to 30 days $ -
31st day through 60th day $205.00/per day
61st day through 120th day $410.00/per day
121st day and everyday thereafter $820.00/per day
Alternate Means and Methods Request (AMMR) $ 465.56
Certificate of Occupancy $ 114.29
Temporary Certificate of Occupancy $ 684.72
Duplicate Permit Request $ 114.29
Street Address Change $ 761.26
Stop Work Penalties 2-4x All Plan review and Permit Fees In House Plan Check Revision Review $310.38/ per hour
Consultant Review Actual Cost
Building Code Compliance Review $ 155.18
Demolition Permit
Inspections
Expired Permits
Misc. Building Fees

California Green Building Fund
Assessed at the rate of $4.00 per $100,000 in
valuation, with appropriate fractions thereof, but
not less than $1.00 per every $25,000 in valuation
Construction Tax (Established per LAMC Chapter 3.24)
Single Family $0.42/per Square Foot
Commercial/ Multifamily $0.70/per Square Foot
Strong Motion and Seismic Hazard Mapping
Fees Assessed at Time of Building Permit Issuance
Strong Motion Instrumentation & Seismic Hazard
Mapping Fees -
SMIP (1-3 Story Residential)
Valuation Amount x 0.00013
(Minimum Fee $0.50) Strong Motion Instrumentation & Seismic Hazard Mapping Fees -
SMIP (Over 3 story residential & all commercial)
Valuation Amount x 0.00028
(Minimum Fee $0.50)
General Plan Maintenance Fee
(Charged based Building Permit Fee) 7.00%
Technology Surcharge Fee
(Charged based on Building Permit Fee) 5.00%

Annexation $ 18,875.39
Appeal $ 1,048.57
Application Extension
Single Family $ 1,061.16
Commercial/ Multi-Family $ 1,785.72
Application Modification
Single Family $ 2,454.71
Commercial/ Multi-Family $ 5,376.04
Development Agreement $ 14,665.37
Flood Hazard Letter $ 724.56
Preliminary Project Review
Staff Review $ 6,971.97
Planning Commission $ 11,605.62
SB9 Dual Opportunity Devolopment $ 3,637.50
Zoning Use Compliance $ 483.39
Zoning Verification Letter $ 724.56
New Use Permit or Modification $ 9,625.91
New Use Permit or Modification (Non-Profit) $ 9,236.90
Temporary Use Permit $ 472.90

PLANNING DIVISION
General Applications
Conditional Use Permit

Single Family
Administrative (<150 sq. ft.) $ 724.56
Administrative (>150 sq. ft.) $ 3,637.50
Zoning Administrator $ 6,726.61
Commercial/ Multi-Family
Administrative $ 7,477.38
Planning Commission $ 15,545.12
Alteration Permit $ 7,520.38
Resource/ Landmark Designation $ 4,482.66
Mills Act $ 6,898.57
New Sign $ 724.56
Modification of Existing Sign $ 483.39
New/ Modification of Sign Program $ 1,449.13
Tree Removal Permit
First Tree $ 314.57
Each Additional Tree $ 157.28
Invasive Species (subject to verification)
In-Lieu Tree Replacement Fee $ 1,258.29
Consulting Arborist Actual Cost
Design Review
Historic Permit
Sign Review
Tree Removal

General Plan Amendment (Deposit) Actual Cost
Zone Change Actual Cost
Zone Text Amendment (Deposit) Actual Cost
Map Amendment (Deposit) Actual Cost
Planned Unit Development (PUD) Actual Cost
Single-Story Overlay Zone Actual Cost
Initial Application $ 579.86
$3.14/sq.ft
Initial Application $ 579.86
Renewal Fee $ 374.34
Outdoor Display Permit $ 1,207.96
Long Range Planning
Parklet Permit
Renewal Fee
(Calculated Per Square Foot of Parklet Area)
Sidewalk Dining
Outdoor Display Permit

Certificate of Compliance $ 4,197.44
Reversion to Acreage $ 7,632.58
Tentative Subdivision Map Review
Tentative Map $ 11,058.27
Parcel Map $ 11,058.27
Parcel Map (Ministerial) $ 6,277.82
Urban Lot Split $ 6,277.81
Lot Line Adjustment/ Lot Merger $ 5,263.84
Map Extension or Modification
Administrative $ 3,909.08
Planning Commission/City Council $ 6,998.18
Single Family $ 11,109.65
Commercial/ Multi-Family $ 13,526.61
Multi-Family Rental $111.15/per Square Foot
Condominium For Sale $120.59/per Square Foot
Townhouse for Sale $178.25/per Square Foot
Technology Surcharge Fee
(Charged based on Planning Project/Permit Fee) 5.00%
Subdivision Review
Variance
Inclusionary Housing In-Lieu Fee
Fees Assessed at Time of Planning Project/Permit Submittal

Parking Stall
Base $ 305.13
Per Stall Per Day $ 35.64
Special $ 739.25
Special - Dewatering to Sewer $1.69/100 gallon
Miscellaneous $ 1,249.90
County Sewer Plan Check $ 1,880.09
Los Altos Hills Sewer Plan Check $ 1,880.09
Public Works Plan Check Actual Cost
Stormwater Management Plan Check $ 1,963.98
Transportation Plan Check Actual Cost
City $ 759.16
City Capacity Rights $ 6,456.29
County $ 1,671.42
County In-Lieu of Assessment $ 12,190.93
County Capacity Acquisition $ 10,128.51
Los Altos Hills Capacity Acquisition $ 10,128.51
Sewer Tap-in $ 152.04
Sewer Dye Test $ 200.27
Tranportation Permits
Single $ 16.00
Annual $ 90.00

PUBLIC WORKS ENGINEERING
Encroachment Permit
Plan Check
Sewer Permit & Fees
Transportation Permits

Additional Inspection Visit $ 369.10
Final Subdivision Map Check
Base $ 4,920.96
City Land Surveyor (Minimum Deposit) $ 2,097.15
Lot-Line Adjustment $ 2,848.97
City Land Surveyor (Minimum Deposit) $ 2,097.15
Vacating Easement/ Right-of-Way $ 11,684.27
Temporary Lane Closure Permits
Application (First Day Only) $ 658.50
Each Additional Day $ 97.51
Heavy Haul Permit $ 757.14
Payment Convenience Fees
Credit Card Convenience Fee – Permit Transactions 2.60% Per Transaction E-Check Convenience Fee – Permit Transactions $1.25 Per Transaction Engineering Inspection Fee
(Based on Construction Costs) 6.00%
Mapping Fees
Misc. Engineering Fees
Environmental Services and Utilities
Utility Street Cut Permit
(Based on Construction Costs) 419.43 + 4%
Fees Assessed at Time of Engineering Permit Issuance / Mapping Submittal Technology Surcharge Fee (Charged based on Engineering Permit Fee / Mapping
Fee)

5.00%
Inspection

Alarm Permit
Renewal $45.17 per permit
Late Renewal/Unpermitted Alarm response $92.00
False Alarm Response
First two responses in a permit year No charge
Third and subsequent responses $ 269.96
Alcohol Permit $ 124.59
Concealed Carry Weapon Permit
Initial Application $ 500.00
Bi-annual renewal $ 250.00
DUI Accident Response
Police Response $ 1,427.70
Fire Response $ 1,739.19
Fatal accident
Fully allocated hourly rate for all
emergency personnel responding, not to exceed
$12,000.00 per incident
Jail Booking Fees Actual County Cost
Massage Establishment Permit
New $ 336.41
Annual Renewal $ 93.44
Miscellaneous Police Permit $186.17 Per Application
Parking Pass Booklets $ 27.00
Parking Permit
Quarterly $ 47.76
Annual $ 118.36
POLICE
Massage Appeal Hearing $2,412.00 per appeal
Includes one hour of City Attorney time

Second Response Call-Back
Standard Response $229.46 Per Response After an Initial Warning Secondhand Dealer/Pawn Shop Permit
New $ 322.50
Annaul Renewal $ 186.37
Solicitor Permit $186.17 Per Application
Special Event Permit Application
New For-Profit $ 519.16
New Non-Profit $ 415.33
On-Going For-Profit $ 207.66
On-Going Non-Profit $ 155.74
Special Event Police Service Actual Cost
Vehicle Impound Release $372.49 per vehicle
Vehicle Repossession $18.37 per vehicle
Verification/Clearance Letter $48.00 per letter
Subpoena $ 275.00
Subpoena Duces Tecum $ 15.00
Police Report Copies $0.20 per page and no charge for victims of crimes POLICE

San Antonio/El Camino Real $482.00 Per Two Weeks
Downtown $482.00 Per Two Weeks
Fremont/Grant $389.00 Per Two Weeks
Lincoln Park
9-foot $199.00 Per Week
18-foot $399.00 Per Week
30-foot $482.00 Per Week
Facility Rental Application Fee $ 15.00
Expedite Fee
(Application submitted less than 15 days prior to the
event date)
$ 75.00
Community Room (Grand Oak)
Resident $ 297.00
Non-Resident $ 356.00
Non-Profit $ 148.00
Commercial $ 445.00
Meeting Room (Sequoia)
Resident $ 118.00
Non-Resident $ 148.00
Non-Profit $ 59.00
Commercial $ 178.00
Multi-purpose Room (Apricot, Manzanita, Birch,
Sycamore, Maple)
Resident $ 95.00
Non-Resident $ 118.00
Non-Profit $ 47.00
Commercial $ 142.00
Banner Hanging
Facility Rental General
Los Altos Community Center Facility Rentals (per hour)

PARKS AND RECREATION

Kitchen
Resident $ 59.00
Non-Resident $ 89.00
Non-Profit $ 29.00
Commercial $ 118.00
Lobby
Resident $ 118.00
Non-Resident $ 148.00
Non-Profit $ 59.00
Commercial $ 178.00
Courtyard
Resident $ 59.00
Non-Resident $ 89.00
Non-Profit $ 29.00
Commercial $ 118.00
Package (Sequoia/Manzanita/Lobby)
Resident $ 249.00
Non-Resident $ 303.00
Non-Profit $ 124.00
Commercial $ 499.00
Package (Sequoia/Manzanita/Apricot)
Resident $ 249.00
Non-Resident $ 303.00
Non-Profit $ 124.00
Commercial $ 499.00
Package (Sequoia/Manzanita/Buckeye/Madrone)
Resident $ 190.00
Non-Resident $ 231.00
Non-Profit $ 95.00
Commercial $ 380.00

Multi-purpose rooms
Resident $ 142.00
Non-Resident $ 178.00
Non-Profit $ 71.00
Commercial $ 285.00
Classrooms
Resident $ 59.00
Non-Resident $ 71.00
Non-Profit $ 47.00
Commercial $ 118.00
San Antonio Club
Resident $ 142.00
Non-Resident $ 178.00
Non-Profit $ 71.00
Commercial $ 285.00
Tennis and Bocce Courts
Resident $ 10.00
Non-Resident N/A
Non-Profit $ 8.00
Commercial N/A
Athletic Fields
Resident $ 59.00
Non-Resident $ 71.00
Non-Profit $ 29.00
Commercial N/A
Gymnasium (Half)
Resident $ 101.00
Non-Resident $ 130.00
Non-Profit $ 53.00
Commercial $ 190.00
Gymnasium (Full)
Resident $ 166.00
Non-Resident $ 213.00
Non-Profit $ 95.00
Commercial $ 332.00
Other Facility Rentals (per hour)

Neutra House
Resident $ 115.00
Non-Resident $ 144.00
Non-Profit $ 57.00
Commercial $ 173.00

Veterans Community Plaza Half Day
Resident $ 167.00
Non-Resident $ 213.00
Non-Profit $ 65.00
Commercial N/A
Veterans Community Plaza Full Day
Resident $ 261.00
Non-Resident $ 326.00
Non-Profit $ 106.00
Commercial N/A
Patriot Corner Picnic Area Half Day
Resident $ 178.00
Non-Resident $ 225.00
Non-Profit N/A
Commercial $ 356.00
Patriot Corner Picnic Area Full Day
Resident $ 261.00
Non-Resident $ 326.00
Non-Profit N/A
Commercial $ 522.00
Grant Picnic Area Half Day
Resident $ 106.00
Non-Resident $ 130.00
Non-Profit N/A
Commercial $ 213.00
Grant Picnic Area Full Day
Resident $ 142.00
Non-Resident $ 172.00
Non-Profit N/A
Commercial $ 285.00
Other Facility Rentals

Key Replacement $ 149.00
Facility Rentals
Additional Facility Attendant $26.00 per hour
Linen Rental $29.00 per linen
Senior Lunch Program
Weekly Lunch Donation Only
Holiday Lunch Donation Only
Change Fees
Classrooms $ 75.00
Multipurpose spaces $ 75.00
Picnic space $ 20.00
Court spaces $ 10.00
Payment Convenience Fees
Credit Card Convenience Fee – Recreation Transacti 2.99% Per Transaction E-Check Convenience Fee – Recreation Transactions $1.25 Per Transaction Miscellaneous

Business License Listing $49.00 Per Request
Business License Duplicate $12.00 Per Request
Credit Card Convenience Fee – Business License Tra 2.99% Per Transaction City Initiative Filing
$200.00 Per Initiative, Refunded if Within One
Year of Filing the Notice of Intent, the Elections
Official Certifies the Sufficiency of the Petition
Damage to City Property Time/Material
Document Reproduction $0.25 Per Page
Fair Political Practices Commission Related $0.10 Per Page Non-Sufficient Funds Check Processing
First NSF Check $25.00 Per NSF Check
Second & Subsequent NSF Checks $35.00 Per NSF Check
Notary Fee $ 15.00
Tobacco Retailer License
Initial $ 297.00
Annual $ 178.00
OTHER FEES (Admin)
- EOD -

1 1018 Eastwood Drive/Covington Road (RSS)
2 1136 Miramonte Avenue/Eastwood (RSS)
3 1207 Windimer Avenue/Stonehaven Avenue (RSS)
4 1221 Covington Road/Thatcher Drive (RSS)
5 456 Almond Avenue/Solana Drive (RSS)
6 601 Almond Avenue/Higgins Avenue (RSS)
1 Almond Avenue/North Clark Avenue (X-WALK)
2 Grant Avenue/Morton Avenue (X-WALK)
3 San Antonio Road/Hawthorne Avenue (X-WALK)
4 San Antonio Road/Hillview Avenue (X-WALK)
5 San Antonio Road/Loucks Avenue (X-WALK)
6 San Antonio Road/Mt. Hamilton Avenue (X-WALK)
7 University Avenue/Edith Avenue (X-WALK)
1 San Antonio Road/Alma Court
2 San Antonio Road/Yerba Buena Avenue
3 Fremont Ave/Fallen Leaf Lane
1 Class II with delineators - Springer Road from 905 Springer to Fremont Road 2 Class III Alicia Way from Jardin Drive to Almond Ave
3 Class III NewCastle Drive from Grant Ave to Fremont Road 4 Class II with delineator - Grant from Grant Road/Foothill Expressway to Homestead Road
5 Class III Main Street from Foothill Expressway to State Street 6 Class III University Ave from Burke Road to Anita Ave 7 Class II with delineators-S. El Monte Ave from Cuesta Drive to Clar Ave

BICYCLE LANE INSTALLATION

RADAR SPEED SIGNS (REPLACED)

LIGHTED CROSSWALKS (REPLACED)

NEW RECTANGULAR RAPID FLASHING BEACON (RRFB) - PENDING INSTALL

City Manager: None
Unrepresented Executive Classifications: 5% Increase and Market Range Adjustments to Individual Classifications effective 12/21/2025 Resolution 2026-XX
Unrep. Executive Classifications FLSA Status Range Min. Range Max. Range Min. Range Max. Range Min. Range Max.

Assistant City Manager Exempt $10,491.62 $12,752.56 $22,731.84 $27,630.55 $272,782.04 $331,566.57 City Manager Exempt $13,108.00 $28,400.67 $340,808.00
Community Services Director Exempt $9,397.77 $11,422.99 $20,361.83 $24,749.80 $244,341.96 $296,997.65 Development Services Director Exempt $9,397.77 $11,422.99 $20,361.83 $24,749.80 $244,341.96 $296,997.65 Finance Director Exempt $9,239.63 $11,230.77 $20,019.20 $24,333.34 $240,230.45 $292,000.11 Human Resources Director Exempt $9,176.35 $11,153.85 $19,882.08 $24,166.67 $238,584.98 $290,000.04 Police Chief Exempt $10,491.62 $12,752.56 $22,731.84 $27,630.55 $272,782.04 $331,566.57 Public Works Director / City Engineer Exempt $9,533.96 $11,588.53 $20,656.91 $25,108.48 $247,882.95 $301,301.72 The city pays employees on a biweekly basis (every two weeks). Please note that monthly and annual salary figures are generated using an Excel formula and may not reflect exact totals due to rounding.

Open Range Open Range Open Range
City of Los Altos - Full Time Salary Schedule FY 26/27
Biweekly Monthly Annual

UNREPRESENTED EXECUTIVE CLASSIFICATIONS

Adopted by City Council 06/XX/26
Resolution 2026-XX

Unrepresented Management: 5% Increase and Market Range Adjustments to Individual Classifications effective 06/21/2026 Resolution 2026-XX
Unrep. Management Classifications FLSA Status Range Min. Range Max. Range Min. Range Max. Range Min. Range Max.

Assistant to the City Manager Exempt $6,012.31 $7,308.00 $13,026.67 $15,834.00 $156,320.06 $190,008.01 Building Official Exempt $7,581.17 $9,214.96 $16,425.87 $19,965.75 $197,110.43 $239,588.96 Capital Improvement Projects Manager Exempt $7,190.83 $8,740.50 $15,580.14 $18,937.75 $186,961.64 $227,253.04 City Clerk Exempt $7,160.12 $8,703.17 $15,513.59 $18,856.86 $186,163.04 $226,282.34 Communications & Engagement Supervisor Exempt $5,625.33 $6,837.62 $12,188.21 $14,814.84 $146,258.50 $177,778.12 Deputy City Manager Exempt $8,142.40 $9,897.13 $17,641.86 $21,443.79 $211,702.28 $257,325.45 Deputy Director Exempt $7,973.92 $9,692.34 $17,276.82 $21,000.08 $207,321.81 $252,000.96 Development Services Manager Exempt $6,805.39 $8,271.99 $14,745.01 $17,922.65 $176,940.06 $215,071.75 Engineering Manager Exempt $7,133.71 $8,671.06 $15,456.36 $18,787.31 $185,476.36 $225,447.67 Finance Manager Exempt $7,368.27 $8,956.18 $15,964.59 $19,405.06 $191,575.06 $232,860.69 Human Resources Administrator Exempt $6,597.16 $8,018.89 $14,293.86 $17,374.27 $171,526.28 $208,491.27 Human Resources Manager Exempt $7,039.83 $8,556.95 $15,252.96 $18,540.06 $183,035.46 $222,480.75 Information Technology Manager Exempt $7,039.83 $8,556.95 $15,252.96 $18,540.06 $183,035.46 $222,480.75 Maintenance Superintendent Exempt $6,990.91 $8,497.49 $15,146.97 $18,411.23 $181,763.61 $220,934.80 Maintenance Supervisor Exempt $5,108.74 $6,209.71 $11,068.94 $13,454.36 $132,827.25 $161,452.35 Planning Manager Exempt $6,805.39 $8,271.99 $14,745.01 $17,922.65 $176,940.06 $215,071.75 Police Captain Exempt $8,830.89 $10,734.01 $19,133.60 $23,257.01 $229,603.23 $279,084.16 Police Lieutenant Exempt $7,907.00 $9,611.00 $17,131.82 $20,823.84 $205,581.88 $249,886.06 Project Manager Exempt $5,901.85 $7,173.74 $12,787.34 $15,543.10 $153,448.12 $186,517.15 Public Information Officer Exempt $6,259.58 $7,608.56 $13,562.42 $16,485.21 $162,749.07 $197,822.51 Recreation Manager Exempt $6,428.33 $7,813.68 $13,928.06 $16,929.64 $167,136.70 $203,155.70 Recreation Supervisor Exempt $5,225.01 $6,351.03 $11,320.85 $13,760.56 $135,850.20 $165,126.77 Senior Recreation Supervisor Exempt $5,486.26 $6,668.58 $11,886.89 $14,448.59 $142,642.71 $173,383.11 The city pays employees on a biweekly basis (every two weeks). Please note that monthly and annual salary figures are generated using an Excel formula and may not reflect exact totals due to rounding.

Open Range Open Range Open Range
City of Los Altos - Full Time Salary Schedule FY 26/27

UNREPRESENTED MANAGEMENT CLASSIFICATIONS
Biweekly Monthly Annual

Adopted by City Council 06/XX/26
Resolution 2026-XX

Unrepresented Confidential: 5% Increase and Market Range Adjustments to Individual Classifications effective 06/21/2026 Resolution 2026-XX
Unrep. Professional and Confidential
Classifications
FLSA Status Range Min. Range Max. Range Min. Range Max. Range Min. Range Max.

Confidential Executive Assistant Non-Exempt $4,176.52 $5,076.59 $9,049.13 $10,999.28 $108,589.59 $131,991.33 Deputy City Clerk Exempt $4,003.36 $4,866.11 $8,673.96 $10,543.25 $104,087.48 $126,518.98 Human Resources Analyst I Exempt $4,515.77 $5,488.95 $9,784.18 $11,892.73 $117,410.12 $142,712.73 Human Resources Analyst II Exempt $4,929.03 $5,991.26 $10,679.56 $12,981.07 $128,154.73 $155,772.87 Human Resources Technician Non-Exempt $3,961.03 $4,814.65 $8,582.23 $10,431.75 $102,986.73 $125,181.02 Management Analyst I Exempt $4,502.19 $5,472.44 $9,754.74 $11,856.95 $117,056.87 $142,283.35 Management Analyst II Exempt $4,963.90 $6,033.65 $10,755.11 $13,072.90 $129,061.29 $156,874.81 Public Information Coordinator Non-Exempt $4,772.97 $5,801.57 $10,341.43 $12,570.07 $124,097.18 $150,840.90 Senior Accountant Exempt $5,104.54 $6,204.59 $11,059.83 $13,443.29 $132,717.92 $161,319.46 Senior Civil Engineer Exempt $7,494.65 $9,109.80 $16,238.41 $19,737.89 $194,860.94 $236,854.69 Senior Human Resouces Analyst Exempt $5,174.43 $6,289.56 $11,211.27 $13,627.37 $134,535.30 $163,528.49 Senior Management Analyst Exempt $5,625.33 $6,837.62 $12,188.21 $14,814.84 $146,258.50 $177,778.12 The city pays employees on a biweekly basis (every two weeks). Please note that monthly and annual salary figures are generated using an Excel formula and may not reflect exact totals due to rounding.

Open Range Open Range Open Range
City of Los Altos - Full Time Salary Schedule FY 26/27

UNREPRESENTED PROFESSIONAL AND CONFIDENTIAL CLASSIFICATIONS Biweekly Monthly Annual

Adopted by City Council 06/XX/26
Resolution 2026-XX

LAMEA: 3.8% CPI Increase effective 06/21/26
Resolution 2026-XX
LAMEA Classifications FLSA Status Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Accountant Non-Exempt $4,439.59 $4,661.57 $4,894.65 $5,139.38 $5,396.35 $9,619.11 $10,100.07 $10,605.07 $11,135.32 $11,692.09 $115,429.35 $121,200.81 $127,260.85 $133,623.90 $140,305.09 Accounting Office Assistant Non-Exempt $2,873.32 $3,016.99 $3,167.84 $3,326.23 $3,492.54 $6,225.53 $6,536.81 $6,863.65 $7,206.83 $7,567.17 $74,706.39 $78,441.71 $82,363.79 $86,481.98 $90,806.08 Accounting Technician I Non-Exempt $3,064.08 $3,217.29 $3,378.15 $3,547.06 $3,724.41 $6,638.85 $6,970.79 $7,319.33 $7,685.30 $8,069.56 $79,666.17 $83,649.48 $87,831.96 $92,223.55 $96,834.73 Accounting Technician II Non-Exempt $3,528.49 $3,704.92 $3,890.16 $4,084.67 $4,288.91 $7,645.07 $8,027.32 $8,428.69 $8,850.12 $9,292.63 $91,740.84 $96,327.88 $101,144.27 $106,201.49 $111,511.56 Assistant Engineer Non-Exempt $4,813.03 $5,053.68 $5,306.36 $5,571.68 $5,850.26 $10,428.22 $10,949.64 $11,497.12 $12,071.97 $12,675.57 $125,138.70 $131,395.63 $137,965.41 $144,863.68 $152,106.87 Assistant Planner Non-Exempt $4,335.77 $4,552.56 $4,780.19 $5,019.20 $5,270.16 $9,394.18 $9,863.89 $10,357.08 $10,874.93 $11,418.68 $112,730.13 $118,366.64 $124,284.97 $130,499.22 $137,024.18 Associate Civil Engineer Non-Exempt $5,458.99 $5,731.94 $6,018.54 $6,319.47 $6,635.44 $11,827.82 $12,419.21 $13,040.17 $13,692.18 $14,376.79 $141,933.87 $149,030.56 $156,482.09 $164,306.20 $172,521.50 Associate Planner Non-Exempt $4,789.95 $5,029.45 $5,280.92 $5,544.97 $5,822.21 $10,378.22 $10,897.14 $11,441.99 $12,014.09 $12,614.80 $124,538.69 $130,765.62 $137,303.90 $144,169.10 $151,377.55 Building Inspector Non-Exempt $4,636.22 $4,868.03 $5,111.43 $5,367.00 $5,635.35 $10,045.14 $10,547.40 $11,074.77 $11,628.51 $12,209.93 $120,541.69 $126,568.77 $132,897.21 $139,542.07 $146,519.18 Code Enforcement Officer Non-Exempt $4,217.15 $4,428.01 $4,649.41 $4,881.88 $5,125.97 $9,137.16 $9,594.02 $10,073.72 $10,577.40 $11,106.27 $109,645.91 $115,128.21 $120,884.62 $126,928.85 $133,275.29 Construction Inspector Non-Exempt $4,494.86 $4,719.60 $4,955.58 $5,203.36 $5,463.53 $9,738.86 $10,225.80 $10,737.09 $11,273.94 $11,837.64 $116,866.27 $122,709.59 $128,845.07 $135,287.32 $142,051.68 Development Services Technician Non-Exempt $3,582.41 $3,761.53 $3,949.61 $4,147.09 $4,354.45 $7,761.90 $8,149.99 $8,557.49 $8,985.37 $9,434.63 $93,142.76 $97,799.89 $102,689.89 $107,824.38 $113,215.60 Economic Development Coordinator Non-Exempt $4,800.94 $5,040.99 $5,293.04 $5,557.69 $5,835.57 $10,402.04 $10,922.14 $11,468.24 $12,041.66 $12,643.74 $124,824.44 $131,065.66 $137,618.94 $144,499.89 $151,724.88 Emergency Response Coordinator Non-Exempt $5,150.44 $5,407.96 $5,678.36 $5,962.27 $6,260.39 $11,159.28 $11,717.24 $12,303.10 $12,918.26 $13,564.17 $133,911.33 $140,606.90 $147,637.24 $155,019.11 $162,770.06 Engineering Technician Non-Exempt $3,880.32 $4,074.34 $4,278.05 $4,491.96 $4,716.55 $8,407.36 $8,827.73 $9,269.11 $9,732.57 $10,219.20 $100,888.31 $105,932.73 $111,229.36 $116,790.83 $122,630.37 GIS Technician Non-Exempt $4,643.12 $4,875.27 $5,119.03 $5,374.99 $5,643.74 $10,060.08 $10,563.09 $11,091.24 $11,645.80 $12,228.09 $120,721.00 $126,757.05 $133,094.90 $139,749.64 $146,737.12 Information Technology Analyst I Exempt $4,938.36 $5,185.27 $5,444.54 $5,716.76 $6,002.60 $10,699.77 $11,234.76 $11,796.50 $12,386.32 $13,005.64 $128,397.26 $134,817.12 $141,557.98 $148,635.87 $156,067.67 Information Technology Analyst II Exempt $5,185.27 $5,444.54 $5,716.76 $6,002.60 $6,302.73 $11,234.76 $11,796.50 $12,386.32 $13,005.64 $13,655.92 $134,817.12 $141,557.98 $148,635.87 $156,067.67 $163,871.05 Information Technology Technician Non-Exempt $4,150.89 $4,358.44 $4,576.36 $4,805.18 $5,045.43 $8,993.60 $9,443.28 $9,915.44 $10,411.21 $10,931.77 $107,923.17 $113,319.33 $118,985.29 $124,934.56 $131,181.29 Network Systems Administrator Exempt $5,507.42 $5,782.79 $6,071.93 $6,375.52 $6,694.30 $11,932.73 $12,529.37 $13,155.84 $13,813.63 $14,504.31 $143,192.80 $150,352.44 $157,870.06 $165,763.56 $174,051.74 Office Assistant I Non-Exempt $2,427.73 $2,549.12 $2,676.57 $2,810.40 $2,950.92 $5,260.09 $5,523.09 $5,799.25 $6,089.21 $6,393.67 $63,121.04 $66,277.09 $69,590.95 $73,070.49 $76,724.02 Office Assistant II Non-Exempt $2,873.32 $3,016.99 $3,167.84 $3,326.23 $3,492.54 $6,225.53 $6,536.81 $6,863.65 $7,206.83 $7,567.17 $74,706.39 $78,441.71 $82,363.79 $86,481.98 $90,806.08 Police Records Supervisor Non-Exempt $4,074.78 $4,278.52 $4,492.45 $4,717.07 $4,952.92 $8,828.70 $9,270.13 $9,733.64 $10,220.32 $10,731.34 $105,944.37 $111,241.59 $116,803.67 $122,643.85 $128,776.04 Recreation Coordinator Non-Exempt $3,563.36 $3,741.53 $3,928.60 $4,125.03 $4,331.29 $7,720.61 $8,106.64 $8,511.98 $8,937.58 $9,384.45 $92,647.37 $97,279.74 $102,143.72 $107,250.91 $112,613.45 Senior Building Inspector Exempt $5,288.78 $5,553.22 $5,830.88 $6,122.42 $6,428.54 $11,459.02 $12,031.97 $12,633.56 $13,265.24 $13,928.51 $137,508.19 $144,383.60 $151,602.78 $159,182.92 $167,142.06 Senior Network Systems Administrator Exempt $5,782.79 $6,071.93 $6,375.52 $6,694.30 $7,029.01 $12,529.37 $13,155.84 $13,813.63 $14,504.31 $15,229.53 $150,352.44 $157,870.06 $165,763.56 $174,051.74 $182,754.33 Senior Planner Exempt $5,676.55 $5,960.38 $6,258.40 $6,571.32 $6,899.88 $12,299.19 $12,914.15 $13,559.86 $14,237.85 $14,949.75 $147,590.32 $154,969.83 $162,718.33 $170,854.24 $179,396.95 Sustainability Coordinator Non-Exempt $4,347.29 $4,564.65 $4,792.89 $5,032.53 $5,284.16 $9,419.13 $9,890.08 $10,384.59 $10,903.81 $11,449.01 $113,029.50 $118,680.98 $124,615.03 $130,845.78 $137,388.07 The city pays employees on a biweekly basis (every two weeks). Please note that monthly and annual salary figures are generated using an Excel formula and may not reflect exact totals due to rounding.

City of Los Altos - Full Time Salary Schedule FY 26/27
Biweekly Monthly Annual

LOS ALTOS MUNICIPAL EMPLOYEE ASSOCIATION CLASSIFICATIONS

Adopted by City Council 06/XX/26
Resolution 2026-XX

POA: Market Adjustment to Individual Classifications effective 06/21/2026 Resolution 2026-XX
POA Classifications FLSA Status Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Community Service Officer Non-Exempt $3,899.31 $4,094.27 $4,298.99 $4,513.93 $4,739.63 $8,448.50 $8,870.92 $9,314.47 $9,780.19 $10,269.20 $101,381.96 $106,451.06 $111,773.62 $117,362.30 $123,230.41 Crime Analyst Non-Exempt $4,937.78 $5,184.67 $5,443.90 $5,716.10 $6,001.90 $10,698.53 $11,233.45 $11,795.12 $12,384.88 $13,004.13 $128,382.31 $134,801.43 $141,541.50 $148,618.57 $156,049.50 Lead Police Dispatcher Non-Exempt $4,882.69 $5,126.82 $5,383.16 $5,652.32 $5,934.94 $10,579.16 $11,108.12 $11,663.52 $12,246.70 $12,859.03 $126,949.91 $133,297.40 $139,962.27 $146,960.39 $154,308.41 Lead Records Specialist Non-Exempt $3,302.78 $3,467.92 $3,641.31 $3,823.38 $4,014.55 $7,156.02 $7,513.82 $7,889.51 $8,283.99 $8,698.19 $85,872.25 $90,165.86 $94,674.15 $99,407.86 $104,378.25 Police Corporal Non-Exempt $5,747.93 $6,035.32 $6,337.09 $6,653.94 $6,986.64 $12,453.84 $13,076.54 $13,730.36 $14,416.88 $15,137.72 $149,446.12 $156,918.43 $164,764.35 $173,002.57 $181,652.69 Police Dispatch Supervisor Non-Exempt $5,513.43 $5,789.10 $6,078.55 $6,382.48 $6,701.60 $11,945.76 $12,543.04 $13,170.20 $13,828.71 $14,520.14 $143,349.08 $150,516.54 $158,042.36 $165,944.48 $174,241.71 Police Dispatcher Non-Exempt $4,512.39 $4,738.01 $4,974.91 $5,223.66 $5,484.84 $9,776.85 $10,265.69 $10,778.97 $11,317.92 $11,883.82 $117,322.17 $123,188.28 $129,347.69 $135,815.07 $142,605.83 Police Officer Non-Exempt $5,651.40 $5,933.97 $6,230.67 $6,542.20 $12,244.70 $12,856.94 $13,499.78 $14,174.77 $146,936.43 $154,283.25 $161,997.41 $170,097.28 $170,097.28 Police Officer Trainee Non-Exempt $5,382.29 $11,661.62 $139,939.45 $139,939.45 Police Sergeant Non-Exempt $6,509.65 $6,835.13 $7,176.88 $7,535.73 $7,912.52 $14,104.23 $14,809.45 $15,549.92 $16,327.41 $17,143.78 $169,250.80 $177,713.34 $186,599.01 $195,928.96 $205,725.41 Records Specialist Non-Exempt $3,002.53 $3,152.65 $3,310.29 $3,475.80 $3,649.59 $6,505.47 $6,830.75 $7,172.28 $7,530.90 $7,907.44 $78,065.68 $81,968.96 $86,067.41 $90,370.78 $94,889.32 The city pays employees on a biweekly basis (every two weeks). Please note that monthly and annual salary figures are generated using an Excel formula and may not reflect exact totals due to rounding.

City of Los Altos - Full Time Salary Schedule FY 26/27
Biweekly Monthly Annual

PEACE OFFICERS' ASSOCIATION CLASSIFICATIONS

Adopted by City Council 06/XX/26
Resolution 2026-XX

Teamsters: Market Range Adjustments to Individual Classifications effective 06/21/2026 Resolution 2026-XX
Teamsters Classifications FLSA Status Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Step A Step B Step C Step D Step E Equipment Mechanic I Non-Exempt $3,327.35 $3,493.72 $3,668.40 $3,851.82 $4,044.41 $7,209.26 $7,569.72 $7,948.20 $8,345.61 $8,762.90 $86,511.07 $90,836.62 $95,378.45 $100,147.37 $105,154.74 Equipment Mechanic II Non-Exempt $3,660.08 $3,843.09 $4,035.24 $4,237.00 $4,448.85 $7,930.18 $8,326.69 $8,743.02 $9,180.18 $9,639.18 $95,162.17 $99,920.28 $104,916.29 $110,162.11 $115,670.21 Maintenance Leadworker Non-Exempt $3,837.12 Open Range $4,664.05 $8,313.76 Open Range $10,105.43 $99,765.18 Open Range $121,265.20 Maintenance Technician Non-Exempt $3,527.44 Open Range $4,287.63 $7,642.79 Open Range $9,289.86 $91,713.46 Open Range $111,478.29 Maintenance Worker I Non-Exempt $2,794.56 Open Range $3,396.80 $6,054.87 Open Range $7,359.73 $72,658.43 Open Range $88,316.78 Maintenance Worker II Non-Exempt $3,220.16 Open Range $3,914.12 $6,977.01 Open Range $8,480.59 $83,724.06 Open Range $101,767.12 Senior Maintenance Technician Non-Exempt $3,962.79 Open Range $4,816.80 $8,586.05 Open Range $10,436.39 $103,032.57 Open Range $125,236.74 Senior Wastewater Maintenance Worker Non-Exempt $3,843.09 $4,035.24 $4,237.01 $4,448.86 $4,671.30 $8,326.70 $8,743.03 $9,180.18 $9,639.19 $10,121.15 $99,920.34 $104,916.36 $110,162.17 $115,670.28 $121,453.80 Wastewater Maintenance Worker I Non-Exempt $3,169.78 $3,328.27 $3,494.68 $3,669.42 $3,852.89 $6,867.86 $7,211.25 $7,571.81 $7,950.40 $8,347.92 $82,414.28 $86,534.99 $90,861.74 $95,404.83 $100,175.07 Wastewater Maintenance Worker II Non-Exempt $3,493.73 Open Range $4,246.65 $7,569.74 Open Range $9,201.06 $90,836.86 Open Range $110,412.77 The city pays employees on a biweekly basis (every two weeks). Please note that monthly and annual salary figures are generated using an Excel formula and may not reflect exact totals due to rounding.

City of Los Altos - Full Time Salary Schedule FY 26/27
Biweekly Monthly Annual

SANITARY TRUCK DRIVERS AND HELPERS
TEAMSTERS UNION LOCAL 350 CLASSIFICATIONS

Adopted by City Council 06/XX/26
Resolution 2026-XX

Part-Time Classifications: Market Range Adjustments to Individual Classifications, effective 06/21/26 Resolution 2026-XX
Part-Time Classifications Title FLSA Status
Employment
Status
Rate Type Min Max
Project Manager Non-Exempt Part-Time Hourly $57.75 $89.67 Network Engineer Non-Exempt Part-Time Hourly $61.50 $83.68 Public Safety Specialist - Dispatch Non-Exempt Part-Time Hourly $67.69 $82.27 Emergency Preparedness Coordinator Non-Exempt Part-Time Hourly $64.38 $78.25 Police Officer - Level I Non-Exempt Part-Time Hourly $69.00 $69.00 IT Technician Non-Exempt Part-Time Hourly $51.89 $63.07 Parking Enforcement Officer Non-Exempt Part-Time Hourly $48.74 $59.25 Property & Evidence CSO Non-Exempt Part-Time Hourly $48.74 $59.25 Project Coordinator Non-Exempt Part-Time Hourly $34.60 $50.00 Department Support Specialist Non-Exempt Part-Time Hourly $38.00 $47.00 Public Safety Specialist - Records Non-Exempt Part-Time Hourly $37.53 $45.62 Clerical Assistant II Non-Exempt Part-Time Hourly $30.50 $38.02 Maintenance Worker I Non-Exempt Part-Time Hourly $28.00 $35.10 Recreation Specialist Non-Exempt Part-Time Hourly $25.00 $33.27 Intern Non-Exempt Temporary Hourly $18.10 $30.00
Clerical Assistant I Non-Exempt Part-Time Hourly $20.00 $29.50 Records Management Assistant Non-Exempt Part-Time Hourly $20.00 $29.50 Crossing Guard Non-Exempt Seasonal Hourly $26.00 $26.00 Facility Attendant Non-Exempt Part-Time Hourly $18.70 $25.85 Senior Recreation Leader Non-Exempt Seasonal Hourly $21.00 $25.35 Recreation Leader Non-Exempt Seasonal Hourly $18.70 $21.50 Council Member Non-Exempt Part-Time Stipend Stipend $950.00 / Month Police Officer - Level II Non-Exempt Per-Diem Stipend Stipend $200.00 / Month The city pays employees on a biweekly basis (every two weeks).

City of Los Altos - Part-Time Hourly Rate Schedule FY 26/27

PART TIME CLASSIFICATIONS

Adopted by City Council 06/XX/26
Resolution 2026-XX

City of Los Altos
Purchasing Policy
JUNE 2026

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TABLE OF CONTENTS
ETHICAL GUIDELINES .................................................................................................. 2 OVERVIEW & RESPONSIBILITIES................................................................................ 2 A VARIETY OF WAYS TO MAKE PURCHASES........................................................... 4 ENVIRONMENTAL PROCUREMENT PRACTICES ...................................................... 7 BIDDING & AUTHORIZATION LIMITS ...................................................................... 12 BIDDING EXCEPTIONS................................................................................................ 14 BUDGET AUTHORITY LEVELS .................................................................................. 16 SIGNATURE AUTHORITY & APPROVALS ................................................................ 17 LEVEL OF SIGNING AUTHORITY............................................................................... 18 FIXED ASSET IDENTIFICATION & TRACKING ........................................................ 19 PROFESSIONAL SERVICES ......................................................................................... 20 ADDITIONAL GUIDANCE............................................................................................ 23 GLOSSARY.................................................................................................................... 27 EXHIBIT ........................................................................................................................ 32

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ETHICAL GUIDELINES
• Compliance with legal prohibitions on conflicts of interest, including the Political Reform Act and Government Code §1090, is required.
• Purchasing from or contracting with a business entity wholly or partially owned or operated by a City employee, or employee’s spouse, is prohibited unless approved in advance by the City Manager. Any employee with such an ownership interest must have no official (City) role in the contracting process. • Purchasing from or contracting with a business entity wholly or partially owned or operated by a family member of a City employee must be approved in advance by a Department Head in writing. To avoid any purchasing conflicts and contract administration issues, any City employee with a familial relationship to a City contractor must disclose the relationship to the Department Head. Such employees must have no official (City) role in the contracting process. A familial relationship is defined as grandparent, grandchild, parent, child, son-in-law, daughter-in-law, parentin-law, or sibling relationship. • A City employee may not participate in the contracting process if they have a financial interest in any person(s), firm, or business entity involved with providing goods or services to the City.
• Departments must make every attempt to ensure open and competitive purchases. • Splitting purchases for the purpose of evading the procedures outlined in this document is strictly prohibited.
• The receipt of any monetary or non-monetary gifts, gratuities, promotional items, rebates, or kickbacks of any value from a prospective or actual contractor or vendor to a City employee is prohibited.

OVERVIEW & RESPONSIBILITIES
Implementing a formal policy and process of procuring goods and services, including a purchase order process, provides several key benefits. It supports clear purchase specifications, avoids disputes with vendors, builds an audit trail, allows level competition to set prices, controls spending limits, creates a system of checks and balances, and enhances public trust. The following principles were used in developing this document, and are as follows:
• This policy addresses the acquisition of equipment, materials, supplies, maintenance services, and professional services in accordance with the Los Altos Municipal Code.

It does not address the procurement of public work projects as defined by the California Public Contract Code.

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• The Finance Director is responsible for implementing this document. Administrative changes or interpretations to this document shall be approved by the City Manager to clarify instructions and address tactical operational needs. • The City Attorney or other Attorneys used do not have any financial authority but are responsible for providing legal review of items directed to them by a Department Director, Risk Manager or City Manager. The City Attorney’s role is limited to legal review and does not constitute financial approval authority. Legal review(s) could be contracts, Purchase Orders (PO), Blanket Purchase Orders (BPO), or other Service Agreements as defined in this document.
• Purchasing is decentralized, with each Department Director responsible for coordinating purchasing efforts in their operations. Purchases are initiated through a departmental Requisition (REQ), which is routed to Finance for review and approval.

Once the Requisition is approved, Finance will generate the corresponding Purchase Order (PO), Blanket Purchase Order (BPO), Purchase Contract Agreement (PCA), or Contract Purchase Order (CPO).
• No requisition or BPO, PO, PCA or CPO lacking sufficient appropriation levels as set in the adopted budget will be undertaken.
• Purchases shall not be split to avoid required bid levels or authorizing dollar limits. • Competitive bids shall be sought using the scope and dollar limits outlined herein whenever possible. A minimum of two (2) quotes are required with three (3) quotes preferred. Requests for Bids should consider the quality necessary to meet the City’s needs.
• Service and pricing negotiation is encouraged by the procurement of professional or maintenance services bound via the execution of a City-compliant contract approved by the Risk Manager.
• Contracts and Service Agreements that result in a Purchase Order must be reviewed and approved by the Risk Manager for insurance and liability compliance. • A City Business License shall be required of any vendor providing construction or maintenance services within the City of Los Altos. Professional Services such as specialized consultants who do not maintain offices within the City of Los Altos are not required to maintain a City Business License.
• Emergency purchases are allowed under the conditions set forth herein.

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A VARIETY OF WAYS TO MAKE PURCHASES
Purchasing methods vary with the dollar amount and nature of the purchase as follows:

Method of
Purchase
Purchase
Type
Subject
to
Bidding
Supporting
Documents
Conditions Dollar
Limits
Petty Cash Small dollar
items on a
reimbursement
basis
No Approved petty
cash slip -
original receipt -
invoice
Cannot
supplant
existing
Purchase
Orders or
Contracts
$100 or
Under
City Calcard Small
dollar items
No Purchase Card
Log/Statement/
receipts/invoice/
delivery packing
slip
Cannot
supplant
existing
Purchase
Orders or
Contracts
Dept set
transaction
limits and
monthly max
card limits
Direct
Vendor
Purchases
Small
dollar items
No Approved
invoice/receipt
/check request
Cannot
supplant
existing
Purchase
Orders or
Contracts
Under
$10,000
Purchase
Order (PO)
Large dollar
purchases
requiring bids
Required Approved
requisition/PO/
invoices/receipts
Not to be
used for
professional
services
$10,000 and
over
Blanket
Purchase
Orders (BPO)
Routine
repetitive
purchases using
pre-established
vendor
Required BPOs ID -
receipt
- invoice -
packing slip if
delivered
Not to be
used for
professional
services
Subject to
established
annual limits
and dept.
approval
authority

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arrangements.

City ID
required at point
of sale.

Contract
Purchase
Orders
(CPO)
Contracted
services - either
maintenance or
professional
See PCA
or PSA
below
Negotiated and
executed
Contract
Contracted
annual limits
and dept.
approval
authority
City Council
approval at
$125,000 and
greater
Purchase
Contracts
Agreements
(PCA)
Routine
repetitive
purchases using
pre-established
vendor
arrangements
Required Negotiated and
executed
Contract and
CPO
Contracted
annual limits
and dept.
approval
authority
Council
approval at
$125,000 and
greater
Professional
Service
Contract
Professional
services based
on need - pricing
competition
encouraged
Recomme
nded
Negotiated and
executed
Contract and
CPO
Contracted
annual limits
and dept.
approval
authority
Council
approval at
$125,000 and
greater
A more detailed discussion of these purchasing methods follows:

Petty Cash is used for infrequent purchases under $100 requiring immediate funding. Petty cash draws must be supported by original receipts and an approved petty cash form denoting a clear business purpose and budget coding. Petty cash shall never be used for personal change requests and is only accessible to designated department custodians. Department Director approval is always required. Replenishment requests to Finance require full reconciliation and approval.

Calcards accommodate small dollar purchases under $10,000 and are limited to preestablished monthly maximums. They are issued for use only with department director’s approval and the execution of a formal employee agreement. The requirements outlined in the Purchasing Card Policy must be strictly adhered to. Calcards are issued jointly in the City’s and employee’s name and shall only be used by the employee they are issued to.

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Cardholders are responsible for reconciling monthly statements and completing a fully documented and approved transaction log. The proper use of Calcards along with timely payment submittal and complete documentation will be strictly enforced with violations promptly resulting in the revocation of Calcard usage.

Direct Vendor Purchases for one-time purchases that fall under $10,000 and can be submitted for payment using original vendor receipts/invoices. This method should not be used to supplant existing BPO or PCA arrangements. Original vendor receipts/invoices must be marked with a City standard approval and budget coding, be submitted on a timely basis with proper approvals and include a clear/concise description of purpose. With increased volume trends, a BPO or PCA can be established for vendors to use repetitively given proper bidding procedures are followed. Departments should use a Purchase Order whenever purchases are planned, repetitive, or expected to exceed $10,000 cumulatively, to avoid vendor fragmentation.

Purchase Orders (POs) facilitate purchases of over $10,000. They follow the submission of a purchase requisition (REQ) to Finance, are subject to bidding either at the informal or formal level (as defined below) and require department director established authorizations.

Blanket Purchase Orders (BPOs) are based on pre-bid agreements with specific vendors.

They promote efficiency by simplifying access to routinely needed goods and services. • The establishment of a BPO requires competitive bidding. • A BPO has a pre-defined, as coordinated with the requesting department, annual maximum limit tracked by the Finance Department. Purchases shall be supported by identifying BPO ID #, department approvals, original receipts, and invoices prior to payment. Budget/account codes and a clear business purpose shall always be noted. • Requests to increase annual BPO limits must be approved by the department director and the Finance Director or their designee. BPO activity will be reviewed annually by the Finance Department as a basis for justifying the continuance of any one vendor. It is the requested department’s responsibility to rebid periodically (no more than three to five years) to ensure the best possible pricing, service and availability. • Department directors may request additional BPO vendors by submitting an email to the Finance Department. Criteria for establishing a BPO includes frequency of ordering, the dollar amount of each order and the absence of an established contract. • Regardless of the annual dollar maximum limit, BPO purchases are subject to the signing authority approvals and transaction limits developed by departments and reviewed by the Finance Department.

Purchase Contract Agreements (PCAs) may be beneficial in establishing firm pricing and an ongoing source of goods and services. This entails entering a multi-year contract.

Much

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like a BPO, these contracts allow departments to access repetitively needed goods and services with minimal procedural overhead.
• The establishment of a Purchase Contract requires competitive bidding based on signing authority thresholds and use of a City-compliant and approved contract. The approvals of the City Manager (for contracts greater than $50,000), Risk Manager, and Finance Director are required.
• The Risk Manager’s approval is required at the initiation of the PCA and annually thereafter if the cost of the initial agreement is modified by over 5% in total. • Departments may request the establishment of a contract for a particular product or service in coordination with the Finance Department with the submission of a Contract Purchase Order (CPO). Criteria for establishing contracts include frequency of ordering, the dollar amount of each order and barriers to contracting such as insurance requirements.
• A Contract Purchase Order (CPO) must follow the approval thresholds outlined in Exhibit B and be submitted to the Finance Department with the fully executed agreement attached.

Cooperative Purchasing Agreements, The City Manager, where advantageous to the City, may, by cooperative purchasing agreements or arrangements, purchase supplies, equipment, and materials through legal contracts of other governmental jurisdictions or public agencies without further competitive bidding by the City. The City may act as the cooperating purchasing agent for other public entities.

Professional Service Contracts are discussed in the following sections of this policy and can only be authorized via an executed City-compliant contract approved by the Risk Manager.

Competitive selection and pricing are required in accordance with applicable procurement thresholds and are encouraged for smaller purchases whenever practical. Departments may request the establishment of a professional service contract below the formal threshold, or must request one when required by policy, in coordination with the Finance Department through submission of a Contract Purchase Order (CPO). The CPO must follow the approval thresholds. Approvals may include the City Manager, Risk Manager, Finance Director, and the City Attorney if legal review is required based on the nature of the contract, as determined by the Risk Manager or Finance Director.

ENVIRONMENTAL PROCUREMENT
PRACTICES SECTION 1. PURPOSE
The City of Los Altos recognizes its responsibility to minimize negative environmental impacts of the City’s activities by ensuring the procurement of services and products that reduce toxicity; conserve natural resources, materials, and energy; and maximize recyclability

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and recycled content while supporting a diverse, equitable, and vibrant community and economy.

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The purpose of this policy is to support procurement decisions that align with the City’s sustainability standards and goals as identified in the adopted Climate Action and Adaptation Plan (CAAP). This policy is applicable to all departments and divisions, to incorporate environmental considerations including but not limited to recycled-content paper and recovered Organic Waste product use into purchasing practices and procurement.

This section will:
• Provide implementation guidance.
• Communicate the City’s commitment to sustainable purchasing to its employees, vendors, and the community.
• Protect and conserve natural resources, water, and energy. • Minimize the City’s contribution to climate change, pollution, and solid waste disposal.
• Empower employees to be innovative and demonstrate leadership by considering sustainability benefits when making purchasing decisions; and • Comply with State requirements as contained in 14 CCR Division 7, Chapter 12, Article 12 (SB 1383 procurement regulations) to procure a specified amount of Recovered Organic Waste Products to support Organic Waste disposal reduction targets and markets for products made from recycled and recovered Organic Waste materials, and to purchase Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper.

SECTION 2. POLICY
Requirements for City Departments or Procurement Practices A. If fitness and quality of Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper are equal to that of non-recycled items, all departments and divisions of the City shall purchase Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, whenever available at the same or a lesser total cost than non- recycled items, consistent with the requirements of the Public Contracts Code, Sections 22150 through 22154 and Sections 12200 and 12209, as amended.

1. All Paper Products and Printing and Writing Paper shall be eligible to be labeled with an unqualified recyclable label as defined in Title 16 Code of Federal Regulations Section 260.12 (2013).

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2. Provide records to the City of all Paper Products and Printing and Writing Paper purchases on a schedule to be determined by the City and not less than annually (both recycled content and non-recycled content, if any is purchased) made by a division or department or employee of the City.

Requirements for Vendors
A. All vendors that provide Paper Products (including janitorial Paper Products) and Printing and Writing Paper to the City shall:

1. Provide Recycled-Content Paper Products and Recycled-Content Printing and Writing Paper that consists of at least thirty percent (30%), by fiber weight, postconsumer fiber, if fitness and quality are equal to that of non-recycled item, and available at equal or lesser price.

B. All vendors providing printing services to the City via a printing contract or written agreement, shall use Printing and Writing Paper that consists of at least thirty percent (30%), fiber weight, postconsumer fiber, or as amended by Public Contract Code Section 12209.

Compost and SB 1383 Eligible Mulch procurement.

A. Divisions and departments responsible for landscaping maintenance shall:

1. Use SB 1383 Eligible Compost and SB 1383 Eligible Mulch produced from recovered Organic Waste, as defined in the Glossary section of this Policy, for landscaping maintenance as practicable, whenever available, and capable of meeting quality standards and criteria specified.

2. Keep records, including invoices or proof of Recovered Organic Waste Product procurement (either through purchase or acquisition), and submit records to the City, on a schedule to be determined by City.

Records shall include:
a. General procurement records, including:
i. General description of how and where the product was used and applied, if applicable.
ii. Source of product, including name, physical location, and contact information for each entity, operation, or facility from whom the Recovered Organic Waste Products were procured.
iii. Type of product.
iv. Quantity of each product; and,
v. Invoice or other record demonstrating purchase or procurement. b. For Compost and SB 1383 Eligible Mulch provided to residents through giveaway events or other types of distribution methods, keep records of

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Compost and SB 1383 Eligible Mulch provided to residents. Records shall be maintained and submitted to the City in accordance with the requirements specified in Section 3.

3. When a Direct Service Provider for the City procures compost or mulch, enter into a written contract or agreement or execute a purchase order between the City and Direct Service Provider with enforceable provisions that include: (i) definitions and specifications for SB 1383 Eligible Mulch, Compost, Renewable Gas, and/or Electricity Procured from Biomass Conversion; and, (ii) an enforcement mechanism (e.g., termination, liquidated damages) in the event the Direct Service Provider is not compliant with the requirements.
a. Renewable Gas procurement (used for fuel for transportation, electricity, or heating applications). For Renewable Gas procurement, the City shall:

1. Procure Renewable Gas made from recovered Organic Waste for transportation fuel, electricity, and heating applications to the degree that it is appropriate and available for the City.

2. Keep records in the same manner indicated in Section 3 for Renewable Gas procured and used by the City, including the general procurement of record information specified in Section 3, and submit records to the City on a schedule to be determined by the City and not less than annually. The City shall additionally obtain the documentation and submit records specified in Section 3 below, if applicable.

SECTION 3. RECORDKEEPING
A. The City will do the following to track Procurement of Recovered Organic Waste Products, Recycled-Content Paper Products, and Recycled-Content Printing and Writing Paper:

1. Collect and collate copies of invoices or receipts (paper or electronic) or other proof of purchase that describe the procurement of Printing and Writing Paper and Paper Products, including the volume and type of all paper purchases; and, copies of certifications and other required verifications from all departments and/or divisions procuring Paper Products and Printing and Writing Paper (whether or not they contain recycled content) and/or from the vendors providing Printing and Writing Paper and Paper Products. These records must be kept as part of the City’s documentation of its compliance with 14 CCR Section 18993.3.

2. Collect and collate copies of invoices or receipts or documentation evidencing procurement from all departments and divisions procuring Recovered Organic

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Waste Products and invoices or similar records from vendors/contractors/others procuring Recovered Organic Waste Products on behalf of the City to develop evidence of the City meeting its Annual Recovered Organic Waste Product Procurement Target. These records must be kept as part of the City’s documentation of its compliance with 14 CCR Section 18993.1.

BIDDING & AUTHORIZATION LIMITS
Competitive bidding promotes fair pricing commensurate with the quality required. The City awards equipment, materials, supplies and maintenance service bids to the lowest priced responsible and suitable bidder. This means that the prevailing bidder is the one who best responds in price, quality, service, fitness or capacity to the requirements of the City. The selection process also considers the ability of the vendor to deliver the needed product, obtain availability of parts or service, prior experience and system compatibility.

Approval Codes: Approval Levels Approving Documents
DH Department Head

REQ, PO, CPO
DE Department Head designee*
FD Finance Department
ACM Assistant City Manager
CM City Manager
CC City Council
* See Signature Authority below
Dollar Limits Bidding Requirements Required Approvals
$10,000 through $50,000 Informal bids DH or DE & FD
Greater than $50,000 and
less than $125,000
Formal sealed bids DH & FD & CM
$125,000 and greater Formal published/ advertised
sealed bids

DH & FD & CM & CC
* Purchases under $10,000 do not require bids although approvals are required from a Department Head and/or Designee for all purchases

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• Purchases of $10,000 through $50,000 require informal bids by the requesting department with quotes obtained from at least two (2) vendors. Telephone quotes are acceptable although written quotations are preferred. Email quotes are allowed. All quotes must be documented and submitted, in comparative format, as part of the approved requisition (REQ) prior to PO, CPO issuance.
• Purchases greater than $50,000 and less than $125,000 require formal bids by the requesting department. This entails the preparation of written specifications, vendor solicitations and sealed bids. The requesting department shall contact as many vendors as necessary and obtain at least two (2) written quotes with three (3) quotes recommended. If the minimum number of quotations cannot be obtained, evidence of the attempt should be documented and kept on file. Professional Services are exceptions.
• Purchases of $125,000 and greater require formal bidding as discussed above but bear the additional requirement of having bid invitations formally published on the City’s electronic bid portal, and regional newspaper before sealed bid opening.

The communication of specifications helps ensure that required, ordered and received items meet the desired level of quality, performance or design. Clarity and completeness in writing specifications avoids a mismatch between vendor compliance and operational needs. It is imperative that staff clearly communicate these requirements in the bid process and inform suppliers, at the time of the bid, exactly what it is that the City needs.

The splitting of purchases to avoid bid and authorization limits is a clear violation of these instructions. Furthermore, purchase cost estimates should always include necessary postmanufacturer add-ons and be included in the Bid specifications.

Bid Cancellations - City Council may cancel an invitation for bids, a request for proposal or other solicitations and may reject some or all bids or proposals when it is determined that cancellation or rejection serves the best interest of the City.

Cooperative Purchasing - Where possible, Cooperative Purchasing may be a benefit to the City. With cooperative purchasing, public entities may mutually make purchases, achieving significant economies of scale. Although public entities together prepare specifications and receive bids, each public entity executes its own contract, administers the procurement function and finances the purchase independently.

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BIDDING EXCEPTIONS
Sole Source Procurements
Sole source procurements involve goods and/or services that can only be practically obtained from one source. Justification will be based on the following:
• The contractor or supplier is the sole provider of the goods or service. • The contractor or supplier is the only source permitted to provide the service or supply based on the manufacturer’s agreement acting as the sole representative in the geographical area.

The person requesting the purchase is to prepare written correspondence justifying and describing the reason for the sole source purchase and must have the approval of the department director. This documentation must be submitted to the Finance Director and Risk Manager, along with the Assistant City Manager for review. City Manager approval is required for sole source purchases greater than $50,000, and City Council approval is required for sole source purchases of $125,000 and greater, along with the requisition for approval.

Because sole source purchases often involve contracts or services with potential risk, the Risk Manager shall remain in the approval chain for all sole source procurements.

Emergency purchases
For the purposes of this section, an emergency shall be deemed to exist if:
• A public disaster occurs; or
• An emergency is declared by the City Council or City Manager • There is an immediate need to prepare for national or local defense; or • There is a breakdown in machinery or an essential service which requires the immediate procurement of supplies and equipment to protect the public health, welfare, or safety; or
• Public health, welfare, or safety would be greatly hampered, if there was an undue delay in the procurement of the needed item
Authority - The City is not required to engage in competitive bidding in an emergency. The City Manager or designee holds the authority to waive any procedures in these instructions that are not statutorily mandated when making emergency purchases of supplies, equipment, materials or services.

If the purchase equals or exceeds $125,000 for construction work, supplies, equipment, materials or services (including professional services), after-the-fact ratification is to be obtained by adoption of City Council Resolution at the soonest possible public meeting following the expenditure. For this purpose, the $125,000 threshold is measured against the total emergency purchase or contract amount, including any subsequent amendments or change orders.

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If, at the time of the emergency, neither the City Manager nor designee are available, department directors may order the needed commodity from the nearest available source.

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As they become accessible, the City Manager, designee and Finance Director should be immediately notified of the purchase.

Initiating the Purchase - Emergency purchases can be made by designated staff responsible for the emergency response. Staff should attempt to determine the best price and quality of goods or services available and advise their department director at the earliest possible opportunity. The Department Director is to relay such information to the City Manager or designee promptly.

Finance Department Notification – Soon after placing the order, the Finance Department is to be notified of: (1) of the emergency purchase; (2) the nature of the purchase and emergency; (3) the Department Director or authorized designee approval; (4) the name and location of the vendor; and (5) the City Manager approval pursuant to the procedures outlined above. This information is to be provided via the Emergency Purchase Documentation form.

Emergency Credit Card Limits - In times of emergency, the City Manager and Department Directors may request a temporary increase in individual credit card transaction limits from the Finance Department up to a maximum of $100,000. This temporary increase is a processing tool to enable timely emergency payments and does not by itself constitute purchase or approval authority; the applicable approval and after-the-fact ratification requirements set forth in this section continue to apply.

Federal Emergency Management Agency (FEMA) - In all cases, the documentation requirements of both the local and federal FEMA agencies are to be complied with as the City’s emergency response team is activated. The tracking of work/OT hours by location, position(s) and incident, invoices/receipts and photographs will ensure cost recovery when claims are ultimately submitted.

City Council Discretion - In its discretion, the City Council may reject any and all bids only when an emergency requires that an order be placed with the nearest available source of supply, when the amount involved is less than an amount to be set by the City Council by resolution, or when the commodity can be obtained from only one (1) vendor.

BUDGET AUTHORITY LEVELS
Budget Responsibility - The annual budget is an essential element of the financial planning, control, and evaluation process of the City. It is reviewed each fiscal year by the City Council and is designed as a financial blueprint for the City to follow.

Upon adoption, the various amounts approved in the budget are recorded in the City’s financial system. Monthly reports are provided to departments, programs or project managers in order to track expenditures activities and compliance with budget limits. It is the responsibility of each Department to maintain control of their budgets.

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Per Financial Policy, Department Directors have budget control at the total department appropriation level. The City Manager’s budget authority is at the Fund and Capital Improvement Project level. This means no Department Director can transfer to/from or utilize the budget of another department – they cannot cross departmental or capital project lines of appropriation. The City Manager may approve transfers between Departments/Programs and between Capital Improvement Projects, but cannot increase the total adopted appropriation.

Any increase in total appropriation levels, as well as any transfer between funds, must be authorized by the City Council. This authority relationship is as displayed graphically below.

It is critical that all expenditures be coded to the appropriate account classifications during the year without restriction to itemized line-item limits (excluding salary and benefit items and total capital project appropriations). The accurate reporting of expenditure types allows for the refinement of budget variances each year.

SIGNATURE AUTHORITY & APPROVALS
The Finance Department maintains an authorized signatory list, including individual approval dollar limits and areas of responsibility, of employees designated by Department Directors to approve and sign for purchases. Department Directors may delegate signing authority up to a maximum of $25,000 to a Division Manager but must submit such authorization in advance via the signed signatory list previously referenced herein. Overall functional signing limits are established as displayed in the following chart. Purchase requests received by the Finance Department lacking appropriate approval will be returned promptly to the requesting department before any purchase order isissued and/or payments

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are processed. Any late charges arising from such processing delays will need to be charged against the department budget.

LEVEL OF SIGNING AUTHORITY
Change Orders
The submission of change orders to an existing PO, CPO or PCA can alter the level of approvals required up to, and including, the need for City Council action. The determination of authorization levels should include the total of the purchases including the accumulated value of related change orders.

Information Technology Purchases
All Information Technology (IT) purchases must be approved in advance by the IT Manager or designee to ensure compliance with City hardware and system standards. Similarly, IT is required to be consulted for any planned purchases of software and hardware arising during the budget process and in the development of system specifications. IT cannot make purchases on behalf of the operating department without documentation pre-authorized by the department director. This approval will be documented via the completion of the IT WorkOrder form.

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Shared Cost Purchases & Payroll Payments
Some shared costs, such as utilities (phone, water, gas, electric, insurance, Software annual maintenance or subscription payments, etc.), fuel, facilities and payroll/benefits deductions (taxes, health benefits, PERS, etc.), require broadly defined processing methods as they are operational in nature and addressed in the budget on a bulk basis. Such payments are held to categorical budget appropriation limits, are centrally processed by the Finance Department, fall outside individual authorizing dollar limits, and are handled in bulk form in the monthly accounting process. These items are reviewed by the Finance Department for completeness, budget compliance and accuracy as they are processed. The basis for these shared cost allocations should be developed by the Finance Director in coordination with the impacted departments and discussed in the annual and mid-year budget process.

Warehouse Orders, Shared Building Supplies & Fuel
Limited items are available for order through the Maintenance Services warehouse. These mostly include janitorial supplies, fuel, office paper, kitchen supplies and can simply be requested via email or phone. They will be charged to the ordering department at the month- end based upon inventory pricing. Supplies delivered to shared cost sites, such as City Hall, will be allocated among benefitting programs on a reasonable basis. Maintenance services shall document these purchases monthly as a basis for financial reporting.

Equipment Purchases Identified in the Budget Process
All new and replacement requests for equipment or vehicles are itemized and submitted to the Finance Department as part of the annual budget process or at the time of mid-year budget review. At budget adoption, these specifically identified items will be considered approved.

In procuring these items, departments are to strictly follow the bid and approval procedures set forth herein but may finalize such purchases without returning to City Council. However, City Council approval must be obtained if additional appropriations are required above the original adopted budget or if the nature of the purchase is substantially altered.

FIXED ASSET IDENTIFICATION & TRACKING
Any tangible item with a useful life of at least one (1) year and a purchase cost, including sales tax and incidentals, of $10,000 or more is considered a fixed asset. These items are to be identified by a unique identifying number (ID) and tracked during their lifecycle. Items that do not fit within the dollar threshold for a fixed asset, but are considered valuable, such as cellular phones, cameras or computers should also be identified by a City ID. Departments are responsible for ensuring that unique identifying numbers (serial numbers/VIN #s) are evident in the supporting documentation provided to the Finance Department and for

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safeguarding City assets, regardless of the value. Departments should expect to account for the asset’s condition and location as part of a year-end inventory.

Physical movement of any fixed asset, even within a department, must be approved by Department Directors or designees and coordinated with the Finance Department to ensure that inventories are updated with the proper location. The physical disposal of any fixed asset must be approved by Department Directors and designees and coordinated with the Finance Department and Facilities Division to ensure that inventory listings are updated.

Periodically, the Finance Department or independent auditors may conduct periodic spot audits to verify asset inventory records and expenditures. Departments should be prepared to support these reviews as needed.

PROFESSIONAL SERVICES
Professional services include those provided by industry specialists such as lawyers, accountants, actuaries, technology specialists, planning, building, and financial consultants. These services, beyond the realm of public works contracts, are exempt from bidding requirements as their selection is based on expertise, experience and proficiency rather than price. As a matter of practice, the City highly encourages competitive bidding for all service contracts and formal RFPs for contracts with values greater than $25,000. A formal RFP is required for contracts of $50,000 and greater; for contracts of $25,000 to less than $50,000, competitive proposals are encouraged but not required.

Agreements with vendors for services can be for a three (3) year period with up to a two (2) year extension of the agreement to a total of no more than five (5) years. At the conclusion of the five (5) years, it is recommended that the agreement be re-bid to test the price of like services in the marketplace and to provide other vendors with an opportunity to present a bid for services. Agreements posted on the Template drive contain the language needed to state the “term” (length of time) of the agreement. For existing agreements that are ongoing until terminated, consult with the Risk Manager to ensure agreements are revised to include a five (5) year term or proper amendment language.

Managers are to review with the Risk Manager each ongoing software or licensing agreement that exceeds the five (5) year term. These agreements are evaluated on a case-by-case basis for the length of term of the agreement and amendment language.

All contracts entered into by the City require approvals based on the applicable dollar thresholds. This typically includes the Department Director, Finance Director, and Risk Manager. Review by the City Attorney shall be obtained if required, depending on the nature and risk level of the contract. Contracts over the annual dollar limit listed below require City Council approval prior to the award. City Council approval is required only for contracts of $125,000 and greater; contracts below $125,000 may be approved administratively within the signing authority limits established in this Policy. This $125,000 threshold applies consistently throughout this Policy and is distinct from the City Manager’s individual signing

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authority below $125,000. RFPs are encouraged as a best practice to ensure competitive selection and transparency.

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Value of Non-Legal
Professional Services
Recommended Number of
Proposals
Required Approvals
$10,000 to less than $25,000 The department must conduct an evaluation of options but
does not have to obtain written
proposals.

Department Director, Finance
Director, Risk Manager
$25,000 to less than $50,000 Formal RFP and two (2) written proposals recommended
Department Director, Finance
Director, Risk Manager
$50,000 to less than $125,000 Formal RFP and two (2) written proposals recommended
Department Director, Finance
Director, Risk Manager, City
Manager, and City Attorney if
legal review is required
$125,000 and greater Formal RFP and two (2) written
proposals recommended
Department Director, Finance
Director, Risk Manager, City
Manager, City Council, and
City Attorney if legal review
is required
Value of Legal Services Recommended Number of
Proposals
Required Approvals
Up to Annual Budgeted
Appropriation for Legal
Fees
City Attorney to evaluate
needs based on expertise
City Attorney, Finance
Director, City Manager
Above Fund Level
Budgeted Appropriation
City Attorney to evaluate
needs based on expertise
City Council
* Services under $10,000 do not require bids although approvals are required from a Department Director and/or designee for all purchases.

Legal Fees
Under the Los Altos Municipal Code, the City Attorney may retain or employ other attorneys, assistants, or special counsel as needed to take charge of, or assist with, any litigation or legal matters.

The City Attorney estimates these costs at the preparation of the budget on a gross basis. Such payments are held to categorical budget appropriation limits, and are centrally processed by the Finance Department, and therefore fall outside individual authorizing

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dollar limits, and are approved by the City Manager. These items are reviewed by the Finance Director for completeness, budget compliance and accuracy as they are processed.

Changes in the scope of existing contracts may trigger a higher level of required approvals.

Professional Services must be initiated and approved via the use of a CPO. Professional Services shall be entered into contractually using a City-compliant executed contract and require the approval of the Risk Manager.

Professional Service Travel Costs - Professional service firms often bill clients for their direct and indirect costs, such as travel, photocopying, proposal preparation, etc. It is advisable that potential providers are informed of, and make documentation available in support of, the City operating travel policies including the following:
• Airfare: The City will not reimburse first class, business class, boarding preferences or other premium types of transportation.
• Hotel: The City will reimburse reasonable hotel accommodation (i.e., single or double rooms, but no suites) and encourage obtaining a government rate in a local venue. • Meals: Reimbursement for meals is limited to the current IRS per diem rate for the destination city.
• Car Rental: Rental vehicles shall be mid-sized class or smaller with rates commensurate with those offered by major rental companies. Use of luxury cars, specialty vehicles, or other non-standard cars will not be reimbursed. Insurance will be provided under the driver's or company's own policy. Additional insurance coverage offered by the car rental company is not reimbursable by the City. • Entertainment/Personal Services: Under no circumstances are expenses related to entertainment (i.e., theater tickets, sporting events) or personal services (i.e., dry cleaning, haircuts) reimbursable.
• Deliveries/Transmittals: Deliveries for which the City is billed will be transmitted in the most economical manner reasonably, unless otherwise required by the City. • Proposal Costs: The City will not reimburse the vendor for any costs associated with the preparation of a proposal.

ADDITIONAL GUIDANCE

FISCAL YEAR-END CUT
OFF
The City’s fiscal year runs from July 1 to June 30. To allow for adequate processing time certain types of purchases must be completed well before the end of the fiscal year. While exact calendar dates may vary, the cutoff for submitting purchasing paperwork is generally as follows:

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• Requisitions & Purchase Orders: 2nd week of June
• Blanket Purchase Orders: Orders to be placed by June 30

SUPPLIER CONTACT AND DECORUM
Staff are obliged to always act in a professional and ethical manner when in contact with suppliers who market their services to the City. To this end, we strive to:
• Give all suppliers full, fair, prompt and courteous consideration • Maintain a level playing field and information transparency • Protect vendor confidentiality when dealing with market-sensitive data • Solicit suggestions in determining clear and adequate specifications and standards • Effectively coordinate with suppliers in an equitable and uniform manner • Observe truthfulness and highest ethics in all transactions and correspondence It is important to treat all vendors equally. This includes providing all competing vendors with the same information needed to respond to a request. It is unfair and unethical to divulge one vendor’s bid price, terms or conditions to another during the competitive bidding stages and important to realize that this information is not publicly accessible until all bids have been received and evaluated. Information marked “Proprietary” or “Confidential” by the vendor is not considered public and must not be revealed to outside parties. The appearance of impropriety is just as important as actual impropriety. Displays of favoritism to a particular vendor should be always avoided.

Gratuities - To maintain strict objectivity and the highest ethical standards, the City prohibits employees accepting vendor gifts or gratuities. Violation of this standard may result in employee disciplinary action up to, and including, termination.

Insurance - It is the City’s practice to transfer as much risk as possible from the City to the supplier or contractor. Therefore, insurance is required from any contractor performing work for the City. This is especially the case for services provided on City property. In these cases, the standards and insurance requirements set forth by the Risk Manager must be adhered to.

The City’s minimum insurance standards to be complied with are included in this document.

Taxes - The City pays sales or use tax on most purchases as defined by Santa Clara County.

This amount is added to the taxable subtotal of your order (certain items such as labor or transportation may or may not be taxable). Use tax, which is equivalent to the sales tax rate, is collected on many out-of-state purchases where the state originating the sale does not collect California State sales tax on behalf of the State. It is important to identify the