Los Altos Hills City Council
February 20, 2025

Staff Report to City Council Page 2
Viscaino Road Sewer Reimbursement Agreement
February 20, 2025
FISCAL IMPACT:

The Town would collect the five percent (5%) Administrative Fee to cover the costs to manage the Agreement and facilitate collection and transfer of funds from future users. There is no fiscal impact associated with this recommendation.

ATTACHMENTS:

1. Resolution

2. Resolution 37-23

3. Viscaino Road Sanitary Sewer Reimbursement Agreement

ITEM 5E Attachment 1
Resolution ____ - 25
RESOLUTION ____ - 25

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

APPROVING AND AUTHORIZING EXECUTION OF THE VISCAINO ROAD

SANITARY SEWER REIMBURSEMENT AGREEMENT BETWEEN THE TOWN OF LOS

ALTOS HILLS AND AJAY SHAH AND LESLIE HARRIS
WHEREAS, the City Council of the Town of Los Altos Hills (“Town”) has read and considered that certain Sanitary Sewer Reimbursement Agreement (“Agreement”) between the Town and Ajay Shah and Leslie Harris.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Los Altos Hills that:

1. Public interest and convenience and the promotion of sewer system improvements support the Town entering into the Agreement described above.

2. The Town of Los Altos Hills hereby approves the Agreement and the Mayor is hereby authorized on behalf of the Town to execute the Agreement between the Town of Los Altos Hills and James and Jennifer Doran.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 20th day of February 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

BY:

ATTEST: Kavita Tankha, Mayor
Arika Birdsong-Miller, City Clerk

VISCAINO ROAD SANITARY SEWER REIMBURSEMENT AGREEMENT
This Sanitary Sewer Reimbursement Agreement (“Agreement”) is entered into this ____ day of _____________, 2025, by and between the Town of Los Altos Hills, a municipal corporation of the State of California (“Town”) and Ajay Shah and Leslie Harris (“Property Owners”).

RECITALS:

A. Property Owner constructed a sanitary sewer extension commonly known as the Viscaino Road Sanitary Sewer Main Extension Agreement within the Town as more particularly shown on Exhibit A, attached hereto (“Sanitary Sewer Extension”).

B. Section 6–4.503 of the Town’s Municipal Code allows the Town’s Sanitary Sewer Reimbursement Policy Dated June 7, 2001 permit the Town to enter into a reimbursement agreement with property owners so that the property owners may be reimbursed for the responsible portion of the costs of a sanitary sewer extension by future users of the extension as set forth in Exhibit B.

C. After due consideration of all relevant factors such as the location and nature of the Sanitary Sewer Extension, the area to be served by the Sanitary Sewer Extension, the developable areas potentially served by the Sanitary Sewer Extension and the residential unit flow of sewage, the City Engineer has found and determined, after proper application by Property Owner, that the Sanitary Sewer Extension will benefit not only the lands of Property Owner, but also other lands which may be served by the Sanitary Sewer Extension at a future date (“Benefiting Lands”). The Benefiting Lands are more particularly set forth in Exhibit B, attached hereto. The current and future owners of Benefiting Lands who later request a hook-up to the Sanitary Sewer Extension, or who are required by the Town to connect to the Sanitary Sewer Extension, shall be hereinafter collectively referred to as “Future Users”.

D. The Town and Property Owner now desire to provide for reimbursement to Property Owner by each Future User for that Future User’s pro-rata share of Sanitary Sewer Extension costs (“Usage Fee”) as shown in Exhibit B, attached hereto. Usage Fee shall be subject to annual adjustments by the Town as specified in the then current “Town of Los Altos Hills Policy, Procedures and Guidelines – Sanitary Sewer Reimbursement Agreement” document, Exhibit C attached hereto, or its replacement document. The Town and Property Owner acknowledge that the total amount that the Property Owner may be reimbursed for the Sanitary Sewer Extension is an amount totaling one hundred forty-one thousand seven hundred twenty nine dollars and zero cents ($141,729) plus (1) annual Construction Cost Index (“CCI”) adjustments as set forth in Exhibit B; and (2) an additional five percent (5%) of the amount of usage fee as adjusted annually, for Town administrative fees.

ITEM 5E Attachment 2

AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

1. The Town will collect the Usage Fee for each Future User as indicated in Exhibit B upon a request by a Future User to connect to the Sanitary Sewer Extension (“Connection Request”), or upon notice to a Future User that it is subject to a Town requirement that the Future User connect to the Sanitary Sewer Extension (“Connection Requirement Notice”). The Town shall be entitled to collect the Usage Fee at any time after a Connection Request or Connection Requirement Notice, and prior to a hook-up by a Future User to the Sanitary Sewer Extension.

2. All Usage Fees collected from Future Users shall include an additional administrative fee equal to five percent (5%) of the Usage Fee amount as annually adjusted based on CCI to pay the costs incurred by the Town in connection with the administration of this Agreement. (“Administrative Fee”).

3. Within sixty (60) days of the end of each year during which this Agreement is in effect, the Town shall pay to Property Owner any and all funds collected pursuant to Paragraph 1 above, less the Administrative Fee. The Town shall make the check payable to and shall send such check to Property Owner, as provided in the following table.

Name & Address Percentage of Funds
to be Paid
Ajay Shah
12864 Viscaino Road, Los Altos Hills, CA94022 50%
Leslie Harris
12698 La Cresta Drive, Los Altos Hills, CA94022 50%
TOTAL: 100%

4. Property Owner agrees to indemnify and hold harmless the Town from any claims, costs or expenses incurred by the Town in connection with any claim by any person or entity with respect to this Agreement, the associated costs or the Usage Fees.

5. All regulations and applicable ordinances of the Town shall apply to this Agreement and to the performances hereunder.

6. If by decision of a court of competent jurisdiction or by California law it shall be declared or become unlawful or unconstitutional to require Future Users to reimburse Property Owner for the Sanitary Sewer Extension, then (a) the Town’s obligations to collect and account for any further Usage Fee(s) shall automatically terminate; and (b) Property Owners and their

successors or assigns shall indemnify and hold harmless the Town from any claims or liability to Future Users for the legally required return of any Usage Fee.

7. In the event of a dispute between any Future User and the Town with respect to the payment of the Usage Fee, the Town may, at its option, take any appropriate action against such Future User to collect the Usage Fee. It is agreed that no Future User shall be allowed to connect to the Sanitary Sewer Extension prior to payment in full of the Usage Fee as specified in Exhibit B during the term of this Agreement.

8. Property Owner and its agents shall hold harmless the Town for any failure by the Town to collect the Usage Fee from any Future User, and nothing in this Agreement shall be construed as imposing any obligation upon the General Fund of the Town and payments shall be made to Property Owner only to the extent funds are actually received and collected by the Town pursuant to this Agreement.

9. This Agreement, and the obligations of the Town hereunder, whether or not all of the Reimbursement Amount or any portion thereof has been collected and remitted to Property Owner or its agents hereunder, shall terminate on the twenty-fifth (25th) anniversary of the date of this Agreement.

10. Prior to execution of this Agreement by the Town, the Property Owner shall pay all legal fees and costs incurred by the Town in connection with preparing this Agreement.

11. This Agreement shall be binding upon the successors, heirs and assigns of the parties hereto, but Property Owner shall not assign any of its rights under this Agreement without the prior written consent of the Town, which consent shall not be unreasonably withheld.

12. The Exhibits attached hereto are hereby incorporated into this Agreement by this reference.

13. All negotiations and agreements previously made by the parties and their agents with respect to this transaction are merged into this Agreement which completely sets forth the obligations of the parties.

The parties hereto have executed this Agreement effective as of the date written above.

ATTEST: TOWN OF LOS ALTOS HILLS

Arika Birdsong-Miller, City Clerk Peter Pirnejad, City Manager

PROPERTY OWNERS

Steve Mattas, City Attorney Ajay Shah
12864 Viscaino Road, Los Altos Hills

Leslie Harris
12698 La Cresta Drive, Los Altos Hills

Exhibit A
Engineering As-Built Plans for VISCAINO RD SANITARY SEWER MAIN EXTENSION, , prepared by NNR Engineering, dated 11/11/2024 consisting of eleven (11) sheets on file with the Engineering Department of the Town of Los Altos Hills

Exhibit B

FUTURE USERS
Address APN# Usage Fee
12864 Viscaino Rd 175-55-004 Installer
12698 La Cresta Dr 175-55-039 Installer
12696 La Cresta Dr 175-55-040 [$47,243 + CCI*%] + 5% AF* 12695 La Cresta Dr 175-55-025 [$47,243 + CCI*%] + 5% AF* 12697 Viscaino Rd 175-55-018 [$47,243 + CCI*%] + 5% AF* *CCI% is Construction Cost Index adjustment from prior year which is applied to the base Usage Fees in the first year of the Agreement and to the cumulative CCI-adjusted prior year Usage Fees on June 30th annually thereafter; 5% AF is Administrative Fee as set forth in Paragraph 2 of the Agreement.

1 TOWN OF LOS ALTOS HILLS

POLICY, PROCEDURES AND GUIDELINES FOR

SANITARY SEWER REIMBURSEMENT AGREEMENTS
Adopted June 7, 2001
Amended October 27, 2011
Policy:

The Town of Los Altos Hills wishes to encourage the availability of public sanitary sewers for all Town residents in a fair and rational way. In order to facilitate this goal, the Town will enter into an agreement with property owners willing or required to construct public sanitary sewer infrastructure in order to reimburse those constructers for a fair share of the direct cost of construction collected from properties that directly benefit from that construction.

Reference:

Title 6, “Sanitation and Health”; Chapter 4 “Sewage”; Article 5, “Sewer Improvement Reimbursement “; Los Altos Hills Municipal Code
Procedures and Guidelines:
1) A Property owner, or legal entity, in the Town of Los Altos Hills may make application to the Town to enter into a Reimbursement Agreement. If Property Owners are outside the Town limits they must apply for annexation or an out-of-services agreement and work with LAFCO.
2) Applications for a Reimbursement Agreement shall include the applicant’s name and address, two (2) sets of the approved, engineered plans for the construction, an engineer’s estimate of the cost of construction (See 6 below, the estimated cost is only used as an indicator of the expected size of the project.), and a list of the proposed future users with supporting documentation. Supporting documentation may include a Town topographic map or a topographic map prepared by a licensed civil engineer for the area of the Reimbursement Agreement at the discretion of the City Engineer. (See 9 below).

After receiving and checking the submitted information, the City Engineer will meet with the Property Owner and provide any comments regarding the submitted information to the Property Owner.

Thereafter the City Engineer will send the Property Owner a letter confirming the Town’s intent to enter into a Reimbursement Agreement with the Property Owner. 3) Reimbursement Agreements may be created retroactively for a period of 10 years after the date of construction and acceptance by the Town, upon submittal of the information indicated in 2) above. The Town will not collect reimbursement fees nor be responsible for connections made before the creation of the Reimbursement Agreement.

EXHIBIT C

2 4) Reimbursement Agreements shall utilize a standard form agreement prepared and approved by the City Attorney. A blank standard form agreement is available to applicants for their information.
5) Reimbursement Agreements will only be submitted to the City Council for approval after the final project cost has been determined, the list of future users has been reviewed and approved by the staff and the construction has been accepted by the Town. 6) The final project cost shall include only the following items:
a) Design costs,
b) Construction costs,
c) Construction services such as construction inspection, compaction testing, and staking, etc,
d) Town and City of Los Altos permit fees,
e) Other documented Governmental Agency fees,
f) Attorney fees as required for the Reimbursement Agreement but limited to 5% of the final construction cost and supported by documentation, g) Land acquisition costs limited to the appraised cost of the land as determined by a certified, Town approved property appraiser.

Interest and other costs shall not be included. In case of questions, the City Engineer will make the determination of applicability. Itemized invoices describing work performed shall be submitted to the City Engineer for review and approval at the completion of the project.
7) The properties included in the list of future users will generally be referred to as the Reimbursement Agreement Service Area and shall be approved by the City Engineer. 8) The term of a Reimbursement Agreement shall be 25 years. 9) Future users shall only include those properties that will directly benefit from the construction as follows. (Future users may include properties not currently within the Town limits.)

a) For gravity sanitary sewer mains, future users are all those properties that have frontage along the gravity sewer main and can connect directly, via a single lateral, to the gravity sanitary sewer main.

The minimum length of sanitary sewer main extension that the City Engineer will permit to be constructed in the public right of way shall be 200 lineal feet. b) For public lift stations and force mains, future users shall be all of those properties within the basin that will need to use the lift station and force main for public sanitary sewer service

EXHIBIT C

3 Lift stations with a service area of 25 properties or more, may be public and those with a service area of fewer then 10 properties shall be private. The determination of public or private status for lift stations with a service area of between 10 and 24 properties will be made by the staff on a case-by-case basis. Guidance for service areas may be obtained from the Lift Station Master Plan by Robinson and Associates, dated May 16, 2000.
c) The property of initial investors in a Reimbursement Agreement shall be included in the Reimbursement Agreement Service Area for the purposes of calculating reimbursement amounts but will be deemed to have paid the reimbursement amount by virtue of being an initial investor. A list of initial investors shall be submitted with the final project cost. 10) The Property Owner may, at the Property Owners option, extend the gravity sanitary sewer main past the Owner’s property to include additional properties into the Reimbursement Agreement Service Area.
11) Reimbursable costs shall be apportioned equally to the properties in the Reimbursement Agreement service area. Should a lot in a service area be subsequently subdivided, each subsequent lot shall pay a prorated share of the original reimbursement amount upon connection.
12) The Town Engineering Department will maintain a list of all properties in approved Reimbursement Agreement service areas with assessor parcel numbers (APN), address, date of expiration of the Reimbursement Agreement and the reimbursement amount. A copy of this list shall be given to the Building Department and Finance Department each time the list is revised or at a minimum on June 30 each year. The Reimbursement Agreement list will be revised each time a new Reimbursement Agreement is approved or when an existing agreement has expired. On June 30th of each year the reimbursement amount on the list of properties shall be adjusted for the Construction Cost Index for the prior year.
13) Before issuing a Building Permit or a Plumbing Permit for a sewer connection, the Building Department will determine if the property is on the Reimbursement Agreement list and refer the prospective permittee to the Engineering Department for payment of any applicable reimbursement amount before issuing the permit. Likewise the Engineering or Public Works Departments shall check the list and collect the applicable reimbursement amount before issuing an Encroachment Permit for a sewer lateral connection.

EXHIBIT C

RESOLUTION 37- 23

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS APPROVING THE APPLICATION FOR CONSTRUCTION OF 12864 VISCAINO

ROAD SANITARY SEWER MAIN EXTENSION AND THE SEWER CONSTRUCTION

AND DEDICATION AGREEMENT
WHEREAS, pursuant to Los Altos Hills Municipal Code Section 6- 4. 446, sewer main facilities may be extended by an applicant in accordance with plans and specifications approved by the City Engineer; and
WHEREAS, the Town of Los Altos Hills received an application from the property owners at 12864 Viscaino Road for construction ofthe 12864 Viscaino Road Sanitary Sewer Main Extension at applicant' s sole cost and expense for the benefit of applicant; and WHEREAS, the applicant desires to dedicate the 12864 Viscaino Road Sanitary Sewer Main Extension to the Town upon completion of construction; and WHEREAS, Town staff prepared the Sewer Construction and Dedication Agreement for the proposed work to ensure that the ownership and maintenance responsibilities of the newly constructed sewer are transferred to the Town; and
WHEREAS, the City Engineer has reviewed the application and plans for the project, and recommends that the Council approve the application and the Sewer Construction and Dedication Agreement for the proposed sewer improvements.

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

1. Approve the application for construction ofthe 12864 Viscaino Road Sanitary Sewer Main Extension.

2. Approve the Sewer Construction and Dedication Agreement for the 12864 Viscaino Road Sanitary Sewer Main Extension.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the
201h day ofApril 2023 by the following vote:

AYES: Swan, Mok, Schmidt, Tyson
NOES: None
ABSTAIN: None
ABSENT: Tankha
BY:

Linda G. Swan, Mayor
Resolution 37- 23 Page ]
ITEM 5E Attachment 3

ATTEST:

Deborah Padovan, City Clerk

ITEM 5F
TOWN OF LOS ALTOS HILLS February 20, 2025
Staff Report to the City Council
SUBJECT: RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF

THE AMENDED AND RESTATED FUNDING AGREEMENT WITH

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
UPDATED IN JANUARY 2025 FOR 2016 MEASURE B BICYCLE &

PEDESTRIAN EDUCATION AND ENCOURAGEMENT PROGRAM
FROM: WooJae Kim, Public Works Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:

Approve a resolution (Attachment 1) approving the amended and restated funding agreement with the Santa Clara Valley Transportation Authority (VTA), updated in January 2025, for the 2016 Measure B Bicycle & Pedestrian Education and Encouragement Program and authorizing the City Manager to execute the agreement.

BACKGROUND
In 2016, Santa Clara County voters approved a 30-year sales tax measure, referred to as Measure B, that would fund nine transportation program categories to enhance transit, highways, roadways in general, and active transportation (bicycles, pedestrians and complete streets). Measure B programs and funds are administered by VTA.

One of the program categories is Measure B - Bicycle and Pedestrian, of which the Education and Encouragement program is part of. The Measure B – Bicycle and Pedestrian Education & Encouragement (E&E) Program provides annual funding to jurisdictions in the county for non-capital improvement projects to promote and educate communities to safely walk, bike, and resort to other multimodal and active transportation options. The Town entered into a master funding agreement with VTA for the Measure B – Bicycle and Pedestrian E&E Program in 2019 (Attachment 2).

DISCUSSION:

On July 18, 2024, the City Council approved Resolution No. 41-24 (Attachment 3) approving the amended and restated funding agreement with VTA for the 2016 Measure B Bicycle & Pedestrian Education and Encouragement Program.

Since then, VTA has made additional amendments to the agreement and is requesting local agencies to approve the latest updated version dated January 17, 2025. The updated Measure B funding agreement is included as Attachment 4 highlighting the changes from

Staff Report to City Council Page 2
Measure B – Bicycle and Pedestrian E&E Program – Agreement Amendment February 20, 2025
the version that Council approved in 2024. Once approved by Council, the newly approved resolution would supersede the Resolution No. 41-24.

ENVIRONMENTAL REVIEW
This action does not qualify as a “Project” as defined in Section 15378(b) of the California Environmental Quality Act Guidelines.
2024-26 CITY COUNCIL WORK PLAN
This program is not specifically identified on the 2024-25 City Council Work Plan; however, it supports the council priorities to “Promote Public Safety” and “Increase Effective Service Delivery & Governance.”

FISCAL IMPACT
Below is a summary of Measure B - Bicycle and Pedestrian E&E Program fund balance for the Town:

FY2023/24 Measure B E&E Fund Balance $70,852.51
FY2024/25 Measure B E&E Accrual $10,000
Expenditures to Date ($7,565.81)
Reimbursements from VTA to Date $7,565.81
Current Measure B E&E Balance $73,286.70
Town staff resources are needed to manage and implement the E&E Program. Otherwise, there is no fiscal impact for this action on the Town.

ATTACHMENT

1. Resolution

2. 2019 Measure B E&E Agreement

3. Resolution No. 41-24

4. Amended and Restated Funding Agreement with VTA (01/17/25 Version) Prepared by: Astha Khanal, Assistant Engineer

ITEM 5F Attachment 1
Resolution ____ - 25
RESOLUTION ____ - 25

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

APPROVING AND AUTHORIZING EXECUTION OF THE AMENDED AND RESTATED

FUNDING AGREEMENT WITH SANTA CLARA VALLEY TRANSPORTATION AUTHORITY UPDATED IN JANUARY 2025 FOR THE 2016 MEASURE B BICYCLE &

PEDESTRIAN EDUCATION AND ENCOURAGEMENT PROGRAM
WHEREAS, Santa Clara County voters approved a 30-year sales tax measure in 2016, referred to as Measure B, that would fund nine transportation program categories to enhance transit, highways, roadways in general, and active transportation; and
WHEREAS, one of the program categories is Measure B - Bicycle and Pedestrian, of which the Education and Encouragement program is part of; and
WHEREAS, the Town entered into a master funding agreement with the Santa Clara Valley Transportation Authority (VTA) for the Measure B – Bicycle and Pedestrian E&E Program in 2019; and
WHEREAS, on July 18, 2024, the City Council approved Resolution No. 41-24 approving the amended and restated funding agreement with VTA for the 2016 Measure B Bicycle & Pedestrian Education and Encouragement Program to extend the term to March 31, 2047; and WHEREAS, on January 17, 2025, VTA further updated the Measure B funding agreement for Bicycle & Pedestrian Education and Encouragement Program and has requested the Town to approve the latest version of the agreement; and
WHEREAS, once this resolution is approved by the City Council, it will supersede Resolution No. 41-24 approved on July 18, 2024.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Los Altos Hills that the amended and restated funding agreement with the Santa Clara Valley Transportation Authority revised on January 17, 2025, for the 2016 Measure B Bicycle & Pedestrian Education and Encouragement Program is approved and the City Manageris authorized to execute the agreement.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on 20th day of February 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

BY:

ATTEST: Kavita Tankha, Mayor
Arika Birdsong-Miller, City Clerk

ITEM 5F Attachment 2

RESOLUTION NO. 41- 24

A RESOLUTION OF THE CITY COUNCIL OF THE

TOWN OF LOS ALTOS HILLS APPROVING THE AMENDED AND RESTATED

FUNDING AGREEMENT WITH SANTA CLARA VALLEY TRANSPORTATION AUTHORITY FOR 2016 MEASURE B BICYCLE & PEDESTRIAN EDUCATION AND

ENCOURAGEMENT PROGRAM
WHEREAS, Santa Clara County voters approved a 30 -year sales tax measure in 2016, referred to as Measure B, that would fund nine transportation program categories to enhance transit, highways, roadways in general, and active transportation; and WHEREAS, one of the program categories is Measure B - Bicycle and Pedestrian, of which the Education and Encouragement program is part of, and
WHEREAS, the Town entered into a master funding agreement with the Santa Clara Valley Transportation Authority ( VTA) for the Measure B — Bicycle and Pedestrian E& E Program in 2019; and
WHEREAS, VTA has provided the Town with an amended and restated funding agreement for the 2016 Measure B Bicycle & Pedestrian Education and Encouragement Program to extend the term to March 31, 2047.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the Town of Los Altos Hills that;

1. Approve the amended and restated funding agreement with the Santa Clara Valley Transportation Authority for the 2016 Measure B Bicycle & Pedestrian Education and Encouragement Program and authorize the City Manager to execute the agreement.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on
181h day of July 2024 by the following vote:

AYES: Mok, Schmidt, Tankha, Tyson, Swan
NOES:

ABSTAIN:

ABSENT:

ATTEST:
ka Birdsong - Miller, y Clerk
RESOLUTION NO. 41- 24
10C y: _ AV—,
ok, Mayor
ITEM 5F Attachment 3

THIS AMENDED AND RESTATED FUNDING AGREE1: MENT (" AGREEMENT") is entered 1:
into as of the last date
of signatwe below E:FFECTIVE DATE an; a' is Detween the TOWN OF LO: S ALTOS HILLS ("' REC11p, IENT"). and SANTA CERA VALLEY TRANSPORTATION AUTHORITY ("TTAN"). RECIPIENT and VTA may oeindividuatly refe: rred to as ""PARTY" or
ely referred to as " PARTIE,S.,

IE ECITALS

1. Whereas, on June 24, 2016, the' VTA, Board of Directors ("' VTA BOARD-") adopted a resolution to place ballot measu? a re betore the voters of San ta ClaCounty: '" Clea SCC!") November 2016 to authorize a o half of :one percent retail tra nrsaction and use tax ('" 2016 MEASURE B, f - 30 yea rrs f ine
transportatim- related program categories,

2. Whereas. on Nlovenl beir, 8, 2016, the: voters of Santa Clara County enacted. 2016 MEASURE B for 30 years to pay for the in transportation - related program categones-1,

31. Whereas, on October 5, 2017, the VTA BOARD estab. , [ ished the 2 Measure 13 Program
ROGRAM-"') and adopted the 2016 Measure B Program CategoryGuide" nes, (" GUIDELINES"). In add,ritii on -11 VTA establshed a PROGRA MANUAL Both the GUIDELINES is1: ! and th, PRO:G RAM MANUAL are incorporated into this Agreement by this reference, and available at www.lvta,.orlg or upon request to VTA4. Whereas, the PROGRAM includes a Bicycle & Pedestrian: pro 9ram category(" BIKE/ PED CATEGORY') to fund bicycle and pedestrian projects 01, and educational programs; 1

5. Whereas, the B1KE/ PED CATEGORY conslists of three sub -categories, including the educatilon & encouragement pro r
g. arn:(" BIKE/ PED E& E PROGRAM'
6 Wherern * as, 11 be 30 years. from the ihitia,[ year of collection, . the duatioof 2016 MEASURE B w beginning Agri] 1, 2017, and continuing through March 3:1, 21047; 1

7. Whereas, thePARTIES entered into: a funding agreement for the BIKE/ PEI) E& E PROGRAM funds on October 1, 2;020, which expires on June 30, 2025 (" PRIOR AGREEMENT"); and

8. Whereas, the PARTIES desire to amend: and restate the PRIOR AGREEMENT to, among other things, SpeciN- the terms and conditions under whichwt 'It a,dmfni ister BIKE/ PED E& E PROGRAM funds allocated to VTA and RECIPIENT through the If1 fe of the PROGRAM.

NOW, TI-IEREFORE, in consWeration of the mutuaf promises contailnedin thi: "s AGREEMENT the PARTIES agree as follows:

Rev 0531. 24 Page 1 of IS

11. AGREEMENT

1. BIKE/ PED E& E PROGRAM DEFINITION
The BIKE/ PED E& E PROGRAM covers viii and the develo, mentand distribution of materials that a designedand innteded to satisfy the following goals within,'RECIPIENTrictiu i
lion: ( i) promote,
educate, and/ or encourage safe walking or bicycling for residentsor visitors of every age and ability; n and (. 1 iq commu icarte to residents and visitors, the beneflits of walking and bicycling, It. co m: rn Un 1 I
cate
t s: : ool children:,, residents : 1 1 ites of pedestrians., bicyclists, and o ch and visitors the rights and res.pU,
motorists.

2. TERM: OF AGREEMENT
The term of this AGREEMENT will commence on the EFFECTIVE DATE and continue through March 31, Oi - funds allocated to RECIPIENT have been expended i 2047, o.r until BIKE/ PEDE& E PROGRAM CATEG RY P entirely, whichever occurs later.,
A. RECIPIENT may use RECIPIENT' s attoed BIKE/ PED EU PROGRAM funds only for act ivitie.s/ projects that fir) are offered/ available to individuals - who live, wo'. rkro: attend school in R VTiE PIE NTS boundaries or school dlistrictst and ( il A has pre -approved in writting, (each, an " E& E PROJECT"). Only VTAsAUTHO:RIZED: R'EPRESENTATiVE ( defined in section. 1.4 below), ignee
has authority to approve an& E PROJECT.
pes ofactivities, / p - B. VTA will consider t
for approval the following ty, tai retse rol w
Rev . 3 . 2 Page 2 of 18

X11. Purchase and distribution of incentives for education /encouragem.ent activities.

X11. Organization and implementation of crosswalk stings or other activities that educate roadway users on traffic laws,. Crosswalk stings are activities conducted by law enforcement to educate the public about crosswalk right of way laws that may or may not include citat ! i ons.

X1, Oirgan, za g
to
ion aria impier nentation of special community events focused on achievin, the BIKE/ PED E PROGRAM goals described in Section 11, Paragraph 1BIKE/ PEDE& E PROGRAM DEFINITION, such as community rides or walks.
x V. Energizer statiOns and otherBitke to Wherever Day activities, V. Implementation of valet bicycle parki] ng.

XV11'. Community-` le ia, surveys of pedestrr' based Of in facilities and surrounfain areas to learn,, to I
obsierve, and identify bicycle and pedestria n hot spots. x. 1aproves writing. V - 1. Any other program or activity VTC P re - P ire Any safety campaign or puioric service announcement targeted to motorists must focus on safe, respionsiblie
r
and respectffW motorist interactions with pedestrians ain.a: bicyclists., RECIPIENT is pe:::rzm,:itted to use BIKE PED E& E PROGRAM funds allocatel d for ( i) direct costs and . staff time costs incurred by REC PIENT p ' for to support E& E ROJECTS, and ( H) costs incurred ev: aluation of the ESEJE TS as, r re under lection 4. EVALUATI N REQUIREMENTS).

D. Notwithstanding any other provision of thi's AGREEMENT, RECIPIENT is, not permitted to use, BIKE/ PED ESE :PR:0GRAM funds, for ca; i'ttal trn:provernen, ts. ip
r% E. E PROJECTS may be targeted and I'Mited to specific demo,grap,hl*cs' l':nCIruding,,, b.,ut not lirnited t bt bited by appl' cab:le law. ors, or peoplewithdisa:'
ill"
school children, seni thies tothe extent not prohi 1 1
F. Only ISE ISE E& E -PROGRAM costs incurred by REC[ PIENTon or after July 1, 2017, will be efigibIle for reirnbursernentL

EVALUATION REQUIREMENTS
A. RECIPIENT must ildent'ify (i) the project reach and scale of eachE& E PROJECT and ( ii) one ormore metric( s) that will beused to evaluate whether the goal was achieved. Examples of acceptable metrics are set forth in Attachment A.

B REC1PIENT mustildent" fy and obtain obt n VTAs prior wn 4ttenapproval of the bra and schedule of eacEE PROJECT evaluation.

S. MAXIUMUM FUNDING ALLOCATIONS
A. RECIPIENVS maximum funding allocation Tor each fiscal year ( July 1st through June 30th) will be based upon the VTA BOARDs Adopted Bilenniia I Budget for the BIKE/ PED ME PROiGRAM and the annual fund distribution formula described below.

Rev 05. 31.24 Page 3 o 18

B. Annual Fund Distribut' lon Formula. The BIKE/ PED E& E PROGRAM annual fund di ribi u t* formula *s calculated every two fiscal years in line wfth VTA s: budget cycle) and i's based on the following..

L First,, at the same time that STA plans and finalizes ' Its budget for the two upcoming fiscal years, the VTA BOARD determines the allocation of 2016 MEASURE B funds for the two upcoming fiscal years..

11. Second, the: VTABOARD determines the amountof 2016 MEASURE B funds t,oi be allocated i
41 amongst the PROGRAM categories and subcategories, including the, BIKE/ PED E& E PROGRAM CATEGORY.
tUff Third : I an allocation 1 's, made to VTA and the County of Santa Clara for countywideI ith respect to Santa Clara County) BIKE/ PED E& E PROGRALM activities C"COUNTYWIDE1 ACTIVITIES"""),. Pier the GUIDELINES, COUNTYWIDE A, CTIVITIES will re celve 25%, of . milabe B :I
i
KE/ PEDE& EPOGRAIVI funds.

I. Fourththe 2016 Measu: e B funds remaining for the BIKE/ PED E& E PROGRAM category a
ll cation are calculated bydeducting the amount allocated for CO' U NTYWIDEACT ' IVTJES

11. 1
It
in subpara, raph ( Iii"i),
i
g " Imme diate Ity aaok, vefromthe total. B[ KE/ PED E& E PROGRAMcategory allocation (;' RE: M AfN ING FUNDS"').

Vt. SIXTHeach CITY PERCENTAGE SHARE (' Including the SCC PERCENTAGE SHARE) Is mItedultiOli 1 by the REMAINING FUND.S to determine the dollar amount that would be allocated to each 11 f
pity based o cl n theirI CTY PERCENTAGE Si- however, no all0cati Jon is yet made at this Crit*,
ji I
h c i i step. its that would receive less, than! $10, 000 as a result of t :e alculatdon dscried cribed in Section ( v) will beidentiffied as ( 1 POP CITIES").

V111. Eighth, the modified REMAINING FUNDS are: calculated by subtracting the cumulative total of allocations made to LOW POP CITIES from the REMAINING FUNDS " MREMANING OD FUNDS"').

Rev 05. 31. 24 Page r4 of 18

Ix. Ninth I a : m o dif; i Jed %>anta Clara County population is calc U lated by deducting the SCC UININCORP POP and all LOW POP CITIES from the TOTAL SCC POP (" MOD] FIED POP ULATION")
X. Tenth., a modififed population percentage share (" MOID CITY PERCENTAGE SHARr) lis ca , lculated for all cities that are not LOW POP ng
CITII
S (". NO:'N- 1L0W POP CIT: ES") by divii dif
1 " S total po,,, n he P T ing
M01,DtFIED PO: :ULA [ ON and
the NON- LOWIPOP C TY puiatio by t
the result by 100.
x Eleventheach NON -LOW POPCITYS MOD CIT` PERCENTAGE SHARE Ismultiptied by he
MOD REMAINING FUNDS to calculateeach NON - LOW POPCITY' s a dd.it"'. 1 onal allocatio: n of 2016 Measure B funds for the BIKE/ PED E& E PROGRAM category. This allocation will be made In addition to the; 10K ALLOCAT1,0N described above.

C. RRCI PIEN'Vs allocations are subject to change: based on, ll ion made by the VTA BOARD pursuant to the :PROGRAM.

If RECIPIENTfaills to o the above by the end of the fourth fiscal year and a no fu nbeen ds have spent in the past four consecutive fiscal years, allocatlions will bereturued by VTA to the pool of 2016 MEASURE13 funds allocated to the BIKE/ PED ESE PROGRAM category for redistribution, in the next allocation cycle pursuant to the formula above.

E. All, funds will be available toRECIII ENT on a rel[mbursenlent basis only., 6 VTX,s 0 . BLI[GAM:0ISS
A Annually reportto the public the arnount of BJKE/ PED & PROGRAM revenues allocated and Bs
distributed to RECIPIENT.

Annually by . report to the public a summary of E& E PROJECT evaluat"fon metricsubmitted RECIPIENT, as requilredIre Section 4. EV.-ALUATION REQUIREMENTS.

W,
C. Conduct an assessment regarding the effectiveness of the BIKE/ PED E& E PROGRAM using approved metrics and data provided ley 'RECIPIENT ( pursuant to Section 4. EVALUATION REQUIREMENTS) related to RECIII ENT' s .E& E PROJECT( s).

Rev 05. 31. 24, Page 5 of 18

D. Biennially or however frequently as VTA determines is appropriate based upon the number of ongoing ME PROJECTs, report to the public the effectiveness of the BIKE/ PED ME PROGRAM based on the assessment described immediately above in Section 6( d)., E. Reinlit the amount due to the RECIPIENT underan invoice within: thirty (30) mendardays of g mit receiptof a complete and properl. fully documented invoiice complyinwltthe requirements set forth herein.

7. RKIME:K!"rs OBUGATIONS
RECIPIENT mu . st,
A,. Comply with 201 Measure B reporting requirements.

B Ensure that all 2016 MEASURE Bfunds are expend: e d on all o wa b .. le BIKE,/PED ME PROGRAM expenditures as described above in d*oILIGIBLE F, NDS.- D. Annually submit to VTA,, by October 1st of each, year, a summary of the prior TIal year com] p eted ME PROJECTS.

E. Submit to V.TA, on a frequency as a: oved by VTA, ppr the evaluabo, abn of the completed ESE PROJ; CTS pursuant to Section 4. EVALUAD 0 N * R EQ M E: TS.

F. If applicable annually submit to *VTA., byOctober 1st ofeach year, an explanation of 'why no BIKE/ PED ME PROGRAM funds are plannTor mit re duhing the upcoming fiscal year.

G. Annually complete and submit to VTA, by October 1stof each year any accompanying reporting requirements for the BIKE/ PED ME PROGRAM.

H. Submit to VTA all records including contractors" lnvoices,, miscellaneous invoices, and force account charges as substantiation for i submittedto VTA for relimbursement hereunder.

1. pshale
Maintain flinancit"al record,s, books,, doc rnents., papers,, accounting record_s and of her evidence ertaining to costs related tothis, AGREEMears;. ENT for five ( 5) RECIPIENT l maksuch y records available to VTA upon VTXs written request for review. ars d audit purposes. Financial Of
audits will be performed at VTAs sole d Iscretiton.

J. Submit invoices to VTA, no more frequently than monthly, for reimbursement of eligible ESI PROJECT costs ( see Section 3. ELIGIBLE USE OF FUNDS). RECIPIENT must submit invoices within one year of the date RECIPIENT incurs the cost submitted on the invoice for reimbursement unless otherwise approved by VTC in writing).

Rev s. 1. 24 Page 6 of IS

8. INDEMNIFICATION
Neither VTA. nor any officer or employee thereof, will be responsiblefor any damage or fliability arising out of or relating toRECIPIEN" rs acts or ornissions under or in connection with any wolirk, authority. or jurisdiction ss citated with this AGREEMENT. puriffo suant to Calrni' a Government Code 5. 4".

RECIPIENT must fully defend, indemnifyand hold harmless VTA from all sults or tilln. of every 1, pjury Cal" forn' a Governme n t Code § 810:,.101 k' nd, and alescri, ption arising from an,' ( as defined by i I relalfinI g to RECIPIEN' rs acts or om' ss' ions unp- der or in connection with any wc0 rk,, authority, or jurisdiction delegated to RECIPIENT under this AGREEME: NT. This provision wfli survive the term"Ination or expiration: of thisAGREEMNT.. ir. E

9. INSURANCE
At all times duninthI g is Agreent, me RECIPIENT muscom t ply with the insurance requirements, and i
S ificatilons of the attached Attachment : C Insurance Requirements,. RECIPIENT may, peci in its discretion , elect to self -insure, but any such self-insurance must meet the requirements and speCITICations : In Attachment; C:.

11. COMPLIANCE WITH APPLICABLE LAW
In execution of any E& EPROJECT and, erformance OT its responsibilities set forthhereinREC] PIENT must comply with all applicable re q
uirements of local, state,, and -federal law.
12 COMPLIANCE WITH 2016 MEASU R EB: REQUTIR . EVENTS
A. In it s : performance under this AGREEMENT, REC[ PIENT must comply, and must e! n s ure ESE P ROJECT compliance, with all PROGRAM requirements including, bit not limited to, the GUIDEL INES an d 1P ROGR : - RAM MANUi I AL.

B. VTA may!'t, 1niisole 1ts discretion, male changesto the GUIDELINES and/ or the PROGRAM MANUAL at any time. If VTA makessuch changes, VTA will notify RECIPIENT within a reasonable timeof such changes,.

13. ENTIRE AG
r

REEIVIEN T
This AGREEMENT contains the entire understanding between VTAand RECIPIENT relating to the p subject matter hereof. This AGREEMENT supersedes any and a:ll other AGREEM ENT(s) that may have existed between the PARTIES, whether orator written. This AGREEMENT i's bindung upon each PARTY, their legal representatives, and successors for the duration of the AGREEMENT. 14, AMENDMENT
Rev 05. 3.1. 24 Pa, ge 7 lof 18

No alteration or variation of the terms of this AGREEMENT will be valid unless made in writing and signed by both of the PARTIES hereto, and no oral understanding or AGREEMENT not incorporated herein will be binding on any of the PARTIES hereto.

15. NOTICES/ AUTHORIZED REPRESENTATIVES
A. Notices. Any notice which may be required under this AGREEMENT ( i) must be in writing, (ii) will be effective when received, and ( iii) must be given by personal service or certified mail the other PARTY' S AUTHORIZED REPRESENTATIVE at the addresses set forth below, or to such other address that may be specified in writing by a PARTY.

B. Authorized Representatives.

VTA:

Marcella Rensi
Deputy Director, Programming and Grants
Santa Clara Valley Transportation Authority
3331 N First Street
San Jose, CA 95134
Email: marcella. rensi@vta. org
RECIPIENT:

Peter Pirnejad
City Manager
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
PPirneiad@losaltoshills. ca. gov
Written notification to the other PARTY must be provided, in advance, for changes in the name or address of the individuals identified above.

The individual identified above for RECIPIENT is RECIPIENT' s BIKE/ PED E& E PROGRAM Liaison LIAISON"). The LIAISON shall be ( i) the liaison to VTA pertaining to implementation of this AGREEMENT and ( ii) the contact for information about the BIKE/ PED E& E PROGRAM and E& E PROJECTS.

16. GENERAL TERMS AND CONDITIONS
A. Representation of Authority. Each PARTY to this AGREEMENT represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this AGREEMENT on behalf of the entity that is a PARTY to this AGREEMENT.

B. No Waiver. The failure of either PARTY to insist upon the strict performance of any of the terms, covenant, and conditions of this AGREEMENT will not be deemed a waiver of any right or remedy that either PARTY may have, and will not be deemed a waiver of either PARTY' s right to require strict performance of all of the terms, covenants, and conditions hereunder.

Rev 05. 31. 24 Page 8 of 18

C. Dispute resolution. If a question or allegation arises regarding( i) ' Interpretation of this AGREEMENT or its performance, or (H) the alleged failure of a PARTY to perform, the PARTY raising the question or making the allegation must give written notice thereof to the ot'der PARTY. The PARTIES must promptly meet in an effort to resolve theissues raiised. If the PARTIES fail to resolve theissuesra' ised- alternative forms, OT alSpUte resolution including media.t.i. it, I on., may be pursued by
mutual agreement. itf PARTI liti
f I
I
is the intent othe! ES to avoid ton as a method dispute osse. resolut',lon tothe greatest extentp ibl.

D. Severabillty. If any of the provisions of t1s AGREEMENT ( or portions or applications thereof) are u 0- 1; held tobe unenforceable or invalid byany court of competent J; ris: iction, VTA and RECIPIENT shall negotiate an equitable adjustment in the Provisions thisAGREEMENT with a view toward effecting
pe
the purpose of this AGREEMENT, and the validity and enforceability of the remain"Ing rovisions or portions or applications thereof will no b a' ttected thee: r b i
E. Governing Law. The lawsof the State of California willgovern IIII`, as well as any claimthat might arise between RECIPIENT and VTA, without regard to conto flict of law pr i : ns.

F. Venue. Any la,wsu*t or legal 9 action, ar"Mn from thi's AGREEMENTmustb e commenced and prosecuted in the courts of Santa Clara County, California. RECIPIENT agrees to submit to the Ew
personal Jurisd ction of the courts located in Santa Clara County, Cal" forn, a for the: purpose of litigating all such claims.

H. Attribut"Iton to VTA. RECIPIENT must include attribution to VTA that incatpart of the work was funded by Program Funds. This provision applies to any projectorpublica, tion th a t was funded in part orin whole by Program Funds'. Acceptableforms of attribution include 2016 MEASURE B s brandiln.g. on ME PROJECT - related documents, pulolic information materials, a,nd. any other applicab: I edocume; , . , nts V -T 'Awi: 11 prov"de Program brandngto:RECIPIENT. 11 1 Rev 05. 31. 24 Page 9: of IS

J. Relationship of the PARTIES. It ' is - understood that this ' I's an AGREEMENT by and between independent parties and does not create the relat'lionship of agent, servant, employee, partnership., jo I nit venture or association or any other relationship other than that: 0 'findependent 1 contractor.

K. Execut ion in Counterparts / Eiectronic Signature. This AGREEMENTmay be executed in: one or more counterparts, each of which will be deemed an original but atl of which Mill constitute one and the sarne' Instrument. An, eledron't'c copy of a signed contract. or an electroin' tcaty signed contract has thesame force andk legal effect as a contract executed with an original in signat ure.

The term " electronic copy of a signed contract' refers to a writing aset s foEvCode rth in idence Paragraph means al. contract that *Is executed by 1550. The term " electron1crally signed contract" applying lain an electronic signature gnature using 1 0 technology logy approved by each, of the Parties.

OR] JIN
Rev 0531. 24 Page 10 of IS

IN WITNESS WHEREOF., VTA and COUNTY have caused thel*r undersitgnee, duly authorilzed s'lignatories to execute tris AG REEM ENT on the dates set forth below.

Santa Clara Valley
Transportation Authority
Carolyn M. Gonot
General Manager/ CE0
Date
Approved as to Form
Name
VTA Legal
Date
RECM" T
Peter P:*trnej",ad
City Manager
Date
Approve as to,Farm
Steve Mattas
Reclip'lent Legal
Rev 05. 31. 24 Page 11 of 18

ATTACH ME NT A
Example Evaluation Requireml e nt Ics
Metri
Evaluation metrics ' Include but are not limited to the ones used below.

Proj ect reach - A metric measuring the tota:l. num:be:r of people or entities that part—iiicated in the activity 1 or received a physcal : I Ite:m providedbythe program. 0 Hypothetical Examplel: OnliIty ne media saTe campaiI gn had 1010-00 un: .ique views 1resulting in 2, 000eop,le takin: the "' P I' wilif drivel walkons l and bike safety and respibly" pledge ,.

Bode shift - A metric measurin.: 9 :the chan 9 , ire the number or percentageof people who replaced another mode of transportation with walking or bilking. o Hypothetical Example: At the end of the school year, 200bricycles were counted in the bike cage, anincrease ii es counted at the beginning of of 20% over the number of be; cyc' l the year.

Behavior change - A metric measuring the change -In the number or percentage of people who changed their travel hambits) including but not limited to frequencyof walking or biking. o Hypothetical Example:[ nd" I I S d to 1200; ividuahzed marketing packet were provide households. 2:00households requested additional information. Befo! re and after surveys I i, showed i ng, that 5% of, households that requested additional innformatioswitched to bikiking,.. or takingI
tra- ns it mo. re
CM : omunityI Engagement —.A metr' measuring the number or percentage of people who becri omeAinvolved in a p!rogram
ol
an ongoing basis.
o Hypothetical Example: At the end of five Train the Trainer eve'n,fts, of the 25 trainees, ten agree to lead Safe Routes to School activities at their schools.

Rev 5..x .. 2.4 Page 12 of 18

ATTATCHMENT B
LOW ROP CITES ALLOCATION SCHEDULtfit
Cities that would receive less than $ 10,,,00:0 as a result of the allocation calculat* losn are instead allocated 10,,,000 minimum per fiscal year,. The minimum $ 10000 allocat'i on w*I 11 cont*I nue through fisca I year 20,28. Followin gt[Scal year 2028, the miritimum allocated to LOW POP CITIES will increase every mennial budget cycle.

The allocation schediUin le s
g FY 20281is as., followsRev 05. 31.24, Page 13 of IS

AT TACH ME NT C

INSURANCEREQUIREMENTS

CONTRACTOR' S ATTENTION IS DIRECTED TO THE INSURANCE REQUIREMENTS BELOW, IT IS

HIGHLY RECOMMENDED THAT CONTRACTORCONFER WITH THEIR INSURANCE CARRIERS OR BROKERS IN ADVANCE. OF PROPOSAL SUBMISSION TO DETERMINE THE AVAILABILITY OF INSURANCE CERTIFICATES AND ENDORSEMENTS 1 THIS: CONTRACT.

A. LiabiRity, and Workers' Compensation Insurance

1. Minlimum Scope & Covera,ge
Coverage must be at Least as broads. -
In surance Services Office General Liab,:"1Lity. coverage (" o,ccurrence, fm CG . Gral.

Liability .Ir surance Written on a "'ctairnsmade"' basisis not acceptable. b. Insurance. Services Ofico:Business Auto Coverage, Insurance ServiIcesOffice form: number CA 0001, covering Automoblite Liability, code 1 " any auto." Auto LiabItity written on a " ctainlsmade" basis *Is not acceptablet c. Workers" Compensation insurance as required Lythe Labor Code of the State of California, and Employer' s Liabilityinsurance.
d. Professional Liability,, Inctuding Limited cont ractuat liability coverage., covering liability arising lout oy negligent act, e.rror,,,MI*sta:':ke or ornission in the Performanice of Contractor' s services under this Contract. This 1overa c ge must be continuousty maintained for a minimum of tlwo( z) years following Co;Mptetion of this Contract. This coverage may be written on a "claim made':"' basis, iff so, please see special provisions in Section'&

2. Mlnllmu m L11mits of Insurance
Contractor must maintain timits no Less than:

Rev 0-531. 24 Page 14 of 18

a. Generat Liabitity ire ire UmbreLta/, Exces s insur, ace) -$ nr2 000, 000 Limit peoccuence rr for bodily injury, personaL injury, and property damage. If a Gen -erat Liabi' ifty or other form
witha generat aggrega timid: Iis used, either the generat aggregate L mit must apply separately to: this prpj*ect/ t;ocat*on or the general aggregate limit must be tw the reqWred occurrence Limit. This a . 1 LJ J requirement may be satisfied by combinat on: of Generat: Li b' insurance with Excess or UmbrelLa polidies, b ut in no event may, the General LiabiLity primary policy tIrnit per occurrence be tens than $ 2,000, 000, untess UmbreUa/ Excess policies future Inception and exrapi` tion dates concurrent with the undertyin g 1poLicy FotLow Form,," coverage, and a " Drop Down".

I
llll 11 lipagpim 111111liqll
A
11110A
c. Wrorkers' Comper f
radon and EmpLoyer s Liability: Statutory Workers",compensation Limits and Employer' s LiabMity, limits of $1, 000, 000, der acclindet. d. re ion Liabitity: $ 2,,00ro: 0.0.. 0 each occurrence/ aggregate minimurn Urn it p eir cta 'I'M.

This requirement may be satisfied by a combination of- ProfesslonaL Liability ins uran cew I th
Excess oUmbrettapoLicie' r S. but evenly the Professionat Liabi Lity primary poticy. in no t
fIM it per o, ic currence be tess than $ 2,000, 000, unless, Umbretla./ Excess poticies fe-alure A c& Pt ion and expiration dates concurrent i h the underlying poL y , "Totlow Form ":
cov era- ge, and a "'Drqp Down,"' prov, Is ton.

3. Setf- lnsureldI Retention
B., Claims Ma.deProv1slons ( not apptlicable to General Lilabiltilty, or Automobile Ulablitilty Ctaims- made coverage 'is never acceptable for General LiabiLity or Auto Liability. Claims.- made may be considered for Profession at, EnvironmentaUl? otLutio.n. or Cyber Liability. If coverage is, written on a cLaims- rt ade basis, the Certificate of Insurance must cLearLy state so. In addition to atL other coverage requirements, such poticy must provide that
Rev 05, 31. 24 Page 15of 18

1. The policy must be in effect as of the date of this Contract and the retroactive date must be no Laterthan the date of this Contract.

2. If anympoticy is nhotrenewed or the retroactiVe date: of su hpoLicy,' s to be & anged,; Contracto r must obtain or cause to: beobtained the broadest tree reporting period coverage avalLa,Me in the commercial, insurance market. This extended reporting provision must cover at Least two 2) years.

3. No pn*or,act.s excLusion may be added to the policy during the contract period. i ci e 19 4., The Policy altows 1 re for reporting of errcums.-tances or in: * d n-ts- that m' ht give rise to future claims.

Thepoticiesrest containorbeen dorsedtocor ta' n, t-,hefott.owing. p,rovisions-*

1. GeneratUabiffifty and Automobille Ulabli'Lity,
b failure ems: to p ty with -reporting provisions of the potic*i!es mmay not affect cove coveragege provided to VTA, its directors, officers,. officiats, emptoyees. or voLunteers. c. ContraT ctors insurance must ap,pLy separateLyto each insured against whom claimis made or suit is broughtlexcept with respect to the Limits Of the insurer' tiabftit.y, d. The General Liability Gen era -t. Aggregate Limit., must appt, y per pro ect, riot per policy. e. The General Liability policy must be endorsed to remove the e.-xctusion for railroad tiabi"titie-s., with coverage at Least as broad as afforded by ISO G 224 17.

2. ALI Coverages
a. Theinsurer must agree to waive all rights of subrogation against VTAits directors, officers, officials, emptoyees, and voLunteers for tosses arising from work performed by Contractor and its subcontractors for VTA.

Rev 05. 31. 24 ' Plage 16 of IS

D Contractor' s, insurance coverage must be primary *insurance asrespects VTA,, its directors, offnicers, officiats emPtoy ees, and voLunteers. Self4iosuthat nsurance r in rance may be maintained by VTA, its directors., officers, offidats, employees, or votuns may appLy only as excess to Contractors insurance. Contractors insurance must not seek contribution ce p. ogm. from VT ins u mn r ra

3. Other Insurance Provislons
a. The Certificate must is t: the actual, amount of the DeductibLe or Seff- Insured Retention
b. f any coverage. forms or endorsements required by this Contract are updated by their pubtishers, whether they be the jnsuranGe carrjer(s).,, the InsuranCe Services ice,, or the American AsSOGiation of Insurance Services, during the duration of th S Contract', VTA, reservesthe right's to require; Contra ctor to procure said coverage forms or endors-em ents using tted, versions upon the next renew atcycl
D. Acce, , Pta b:l L"Ity,o.f,;I.n,su rer.-s
Insurance and bond's must be ptaced: with insurers with, an A.M. Bes ratingof no Less than A V11 financlat strength rating of no Less than.A and finars Gial, size category of- no, less than V11), unless spec ifiic priror*
tten aprprovat, has been granted by VTA.

E. Certificates of.insurance
The certificates must ( 1) identify the insu; rers, the, types of insuranc. ce the insurance Limits, tieh S
ndoI
IR - I 11deductibtes : or Lack her and thee policy term, ( 2) Iin: C tude copies of all the actuat policy ersements rewired herewith, and ( 3) in the "'-,certificate Aj HoWerI" ,- box incLude
Santa Ctara Valtey Transportation Authority (" VTA")
33,31 North First Street
1- 7 In the Description of Operat*tons/ Locatl:onsNehicLes/ Specrl:at Items Box the VTA Contract number must appear, the List of poticies scheduted as undertying on the Umbretia /Excess poticymust be listed Gertificate iters be named as, additionat -insured, and Waiver of Subrogabon must be indicated. as endorsed to ate po cies, as stated in the Contract- Documentsr' Rev 5. x . 24 Page 17 of 18

It is a condition precedent to award of this Contract that at insurance certificates and endorsements be received and approved : by VTA beforeGontract execution. No work may be performed unfit insurance is in fu -LL compLiance. VTA, reserves the r'ghts to require co: M ptete, certified poples of attrequired insurance policles, at any time. the i
ies required by th*s 'EAU maybe If Contractor receives notice that any of insurance Li I It canceLted or coverage reduced for any reason: whatsoever, Contractor must iminedlatety, provide written notice to VTA that such insurance PoLicy required by this:Exhibit is ea Bete or coverageis reduced.

F. Maintenance : of In.surance
If Contractor faits- to maintain insurance as required h- erei in, VTA, at its opton . m: ay s: us p end
payment for work performed and/ or may order Contra ctorto us ern work at Contractor- expense untit a new potillcy, of insurance ,i , siin effect.

EdNi ' Rev. 10- 1- 19
Rev 5. 3 . 24 Page 18 of 18

ITEM 5F Attachment 4
Rev 1.17.25 Page 1 of 19

AMENDED AND RESTATED FUNDING AGREEMENT

BETWEEN

TOWN OF LOS ALTOS HILLS
AND

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FOR
2016 MEASURE B BICYCLE & PEDESTRIAN EDUCATION AND ENCOURAGEMENT PROGRAM THIS AMENDED AND RESTATED FUNDING AGREEMENT (“AGREEMENT”) is entered into as of the last date of signature below (“EFFECTIVE DATE”) and is by and between the TOWN OF LOS ALTOS HILLS (“RECIPIENT”) and SANTA CLARA VALLEY TRANSPORTATION AUTHORITY (“VTA”). RECIPIENT and VTA may be individually referred to as “PARTY” or collectively referred to as “PARTIES.” I. RECITALS

1. Whereas, on June 24, 2016, the VTA Board of Directors (“VTA BOARD”) adopted a resolution to place a ballot measure before the voters of Santa Clara County (“SCC”) in November 2016 to authorize a one-half of one percent retail transaction and use tax (“2016 MEASURE B”) for 30 years for nine transportation-related program categories;

2. Whereas, on November 8, 2016, the voters of Santa Clara County enacted 2016 MEASURE B for 30 years to pay for the nine transportation-related program categories;

3. Whereas, on October 5, 2017, the VTA BOARD established the 2016 Measure B Program (“PROGRAM”) and adopted the 2016 Measure B Program Category Guidelines (“GUIDELINES”). In addition, VTA established a program manual (“PROGRAM MANUAL”). Both the GUIDELINES and the PROGRAM MANUAL are incorporated into this Agreement by this reference and available at www.vta.org or upon request to VTA;

4. Whereas, the PROGRAM includes a Bicycle & Pedestrian program category (“BIKE/PED CATEGORY”) to fund bicycle and pedestrian projects and educational programs;

5. Whereas, the BIKE/PED CATEGORY consists of three sub-categories, including the education & encouragement program (“BIKE/PED E&E PROGRAM”);

6. Whereas, the duration of 2016 MEASURE B will be 30 years from the initial year of collection, beginning April 1, 2017, and continuing through March 31, 2047;

7. Whereas, the PARTIES executed a funding agreement for the BIKE/PED E&E PROGRAM funds on March 6, 2020 which expires on June 30, 2025 (“PRIOR AGREEMENT”); and

8. Whereas, the PARTIES desire to amend and restate the PRIOR AGREEMENT to, among other things, specify the terms and conditions under which VTA will administer BIKE/PED E&E PROGRAM funds allocated to VTA and RECIPIENT through the life of the PROGRAM.

NOW, THEREFORE, in consideration of the mutual promises contained in this AGREEMENT, the PARTIES agree as follows:

ITEM 5F Attachment 4
Rev 1.17.25 Page 2 of 19
II. AGREEMENT

1. BIKE/PED E&E PROGRAM DEFINITION
The BIKE/PED E&E PROGRAM covers activities and the development and distribution of materials that are designed and intended to satisfy the following goals within RECIPIENT’s jurisdiction: (i) promote, educate, and/or encourage safe walking or bicycling for residents or visitors of every age and ability; (ii) communicate to residents and visitors the benefits of walking and bicycling; and (iii) communicate to school children, residents, and visitors the rights and responsibilities of pedestrians, bicyclists, and motorists.

2. TERM OF AGREEMENT
The term of this AGREEMENT will commence on the EFFECTIVE DATE and continue through March 31, 2047, or until BIKE/PED E&E PROGRAM CATEGORY funds allocated to RECIPIENT have been expended entirely, whichever occurs later.

Notwithstanding the foregoing, the PARTIES may terminate this AGREEMENT pursuant to Section II, Paragraph 13.

3. ELIGIBLE USE OF FUNDS
A. RECIPIENT may use RECIPIENT’s allocated BIKE/PED E&E PROGRAM funds only for activities/projects that (i) are offered/available to individuals who live, work, or attend school in RECIPIENT’S boundaries or school districts, and (ii) VTA has pre-approved in writing (each, an “E&E PROJECT”). Only VTA’s AUTHORIZED REPRESENTATIVE (defined in Section II, Paragraph 15 below), or designee, has authority to approve an E&E PROJECT.

B. VTA will consider for approval the following types of activities / projects:
i. Organization and implementation of K-12 Safe Routes to Schools programs and activities. ii. Organization and implementation of Vision Zero programs. “Vision Zero” is defined by the Vision Zero Network campaign as the “Strategy to eliminate all traffic fatalities and severe injuries while increasing safe, healthy, equitable mobility for all,” which definition is adopted for purposes of this AGREEMENT.
iii. Organization and implementation of open streets events. “Open streets events” are defined by the Open Streets Project (an advocacy project and collaboration between 8 80 Cities and Street Plans) as “Programs that temporarily open streets to people by closing them to cars,” which definition is adopted for purposes of this AGREEMENT. iv. Creation and implementation of marketing to encourage mode shift towards active transportation.
v. Development and distribution of maps that promote places to walk or bike. vi. Education of walking and bicycling skills to adults and children. vii. Working with law enforcement officials to ensure common understanding and consistent application among law enforcement officials of traffic laws related to biking and walking. viii. Organization and implementation of broad or targeted safety campaigns to promote safe driving, walking, and bicycling behavior.*

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ix. Creation and distribution of marketing materials to encourage safe walking, biking, and driving.*
x. Purchase and distribution of bicycle helmets, lights, reflective vests, or other bicycle/pedestrian safety equipment to be used in education/encouragement activities. xi. Purchase and distribution of incentives for education/encouragement activities. xii. Organization and implementation of crosswalk stings or other activities that educate roadway users on traffic laws. Crosswalk stings are activities conducted by law enforcement to educate the public about crosswalk right of way laws that may or may not include citations.
xiii. Organization and implementation of special community events focused on achieving the BIKE/PED E&E PROGRAM goals described in Section II, Paragraph 1, such as community rides or walks.
xiv. Energizer stations and other Bike to Wherever Day activities. xv. Implementation of valet bicycle parking.
xvi. Community-based bicycle/pedestrian surveys of facilities and surrounding areas to learn, observe, and identify bicycle and pedestrian hot spots. xvii. Any other program or activity VTA pre-approves in writing. *Any safety campaign or public service announcement targeted to motorists must focus on safe, responsible, and respectful motorist interactions with pedestrians and bicyclists.

C. RECIPIENT is permitted to use BIKE/PED E&E PROGRAM funds allocated for (i) direct costs and staff time costs incurred by RECIPIENT to support E&E PROJECTS, and (ii) costs incurred for evaluation of the E&E PROJECTS (as required under Section II, Paragraph 4).

D. Notwithstanding any other provision of this AGREEMENT, RECIPIENT is not permitted to use BIKE/PED E&E PROGRAM funds for capital improvements.

E. E&E PROJECTS may be targeted and limited to specific demographics including, but not limited to, school children, seniors, or people with disabilities to the extent not prohibited by applicable law.

F. Only BIKE/PED E&E PROGRAM costs incurred by RECIPIENT on or after July 1, 2017, will be eligible for reimbursement.

4. EVALUATION REQUIREMENTS
A. RECIPIENT must identify (i) the project reach and scale of each E&E PROJECT and (ii) one or more metric(s) that will be used to evaluate whether the goal was achieved. Examples of acceptable metrics are set forth in Attachment A, attached hereto and incorporated herein.

B. RECIPIENT must identify and obtain VTA’s prior written approval of the frequency and schedule of each E&E PROJECT evaluation.

5. MAXIUMUM FUNDING ALLOCATIONS

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A. RECIPIENT’S maximum funding allocation for each fiscal year (July 1st through June 30th of the following calendar year) will be based upon the VTA BOARD’s Adopted Biennial Budget for the BIKE/PED E&E PROGRAM and the annual fund distribution formula described below.

B. Annual Fund Distribution Formula. The BIKE/PED E&E PROGRAM annual fund distribution formula is calculated every two fiscal years (in line with VTA’s budget cycle) and is based on the following:
i. First, at the same time that VTA plans and finalizes its budget for the two upcoming fiscal years, the VTA BOARD determines the allocation of 2016 MEASURE B funds for the two upcoming fiscal years.
ii. Second, the VTA BOARD determines the amount of 2016 MEASURE B funds to be allocated amongst the PROGRAM categories and subcategories, including the BIKE/PED E&E PROGRAM CATEGORY.
iii. Third, an allocation is made to VTA and the County of Santa Clara for countywide (with respect to Santa Clara County) BIKE/PED E&E PROGRAM activities (“COUNTYWIDE ACTIVITIES”). Per the GUIDELINES, COUNTYWIDE ACTIVITIES will receive 25% of available BIKE/PED E&E POGRAM funds.
iv. Fourth, the 2016 Measure B funds remaining for the BIKE/PED E&E PROGRAM category allocation are calculated by deducting the amount allocated for COUNTYWIDE ACTIVITIES in subparagraph (iii), immediately above, from the total BIKE/PED E&E PROGRAM category allocation (“REMAINING FUNDS”).
v. Fifth, VTA determines the percentage of the total population of SCC (“TOTAL SCC POP”) of each city (“CITY POP”) and of the unincorporated areas of SCC (“SCC UNINCORP POP”) to determine allocations to each city. For purposes of these calculations, the TOTAL SCC POP includes unincorporated areas and is based on the then most current California Department of Finance’s more current annual population estimates at the time of allocation determination, i.e., Report E-1, or any successor report. Each CITY POP is divided by the TOTAL SCC POP, and then the result is multiplied by 100. The result for each city is the “CITY PERCENTAGE SHARE” (for SCC, the ”SCC PERCENTAGE SHARE”). vi. SIXTH, each CITY PERCENTAGE SHARE (including the SCC PERCENTAGE SHARE) is multiplied by the REMAINING FUNDS to determine the dollar amount that would be allocated to each city based on their CITY PERCENTAGE SHARE; however, no allocation is yet made at this step. Cities that would receive less than $10,000 as a result of the calculation described in Subsection (v) will be identified as low population cities (“LOW POP CITIES”). vii. Seventh, each city is allocated $10,000 (“10K ALLOCATIONS”). LOW POP CITIES will not be allocated any additional funds beyond the 10K ALLOCATIONS made to each city as described in this Subsection (vii). The minimum 10k ALLOCATIONS will continue through fiscal year 2025. Following fiscal year 2025, the minimum allocated to LOW POP CITIES will increase by $2,000 every five years. See the “LOW POP CITES ALLOCATION SCHEDULE” included in this AGREEMENT as Attachment B, attached hereto and incorporated herein.

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viii. Eighth, the modified REMAINING FUNDS are calculated by subtracting the cumulative total of allocations made to LOW POP CITIES from the REMAINING FUNDS (“MOD REMAINING FUNDS”).
ix. Ninth, a modified Santa Clara County population is calculated by deducting the SCC UNINCORP POP and all LOW POP CITIES from the TOTAL SCC POP (“MODIFIED POPULATION”).
x. Tenth, a modified population percentage share (“MOD CITY PERCENTAGE SHARE”) is calculated for all cities that are not LOW POP CITIES (“NON-LOW POP CITIES”) by dividing the NON-LOW POP CITY’S total population by the MODIFIED POPULATION and multiplying the result by 100.
xi. Eleventh, each NON-LOW POP CITY’S MOD CITY PERCENTAGE SHARE is multiplied by the MOD REMAINING FUNDS to calculate each NON-LOW POP CITY’s additional allocation of 2016 Measure B funds for the BIKE/PED E&E PROGRAM category. This allocation will be made in addition to the 10K ALLOCATION described above.

C. RECIPIENT’s allocations are subject to change based on allocations made by the VTA BOARD pursuant to the PROGRAM.

D. BIKE/PED E&E PROGRAM allocations may be banked and remain unspent for a maximum of three fiscal years, provided that (i) RECIPIENT provides VTA with a satisfactory explanation for why the allocation is not being spent and (ii) VTA provides RECIPIENT with written approval for such explanation. In this instance, RECIPIENT must begin drawing funds during the fourth fiscal year.

Following the third fiscal year of banked allocations and within the fourth fiscal year, RECIPIENT must provide to VTA the required documentation as described in Section II, Paragraph 7. In this fourth fiscal year, RECIPIENT must submit, at minimum, one invoice for funds towards an E&E PROJECT.

If RECIPIENT fails to do the above by the end of the fourth fiscal year and no funds have been spent in the past four consecutive fiscal years, then allocations will be returned by VTA to the pool of 2016 MEASURE B funds allocated to the BIKE/PED E&E PROGRAM category for redistribution in the next allocation cycle pursuant to the formula above.

E. All funds will be available to RECIPIENT on a reimbursement basis only.

6. VTA’s OBLIGATIONS

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VTA will:

A. Annually report to the public the amount of BIKE/PED E&E PROGRAM revenues allocated and distributed to RECIPIENT.

B. Annually report to the public a summary of E&E PROJECT evaluation metrics submitted by RECIPIENT, as required in Section II, Paragraph 4.

C. Conduct an assessment regarding the effectiveness of the BIKE/PED E&E PROGRAM using approved metrics and data provided by RECIPIENT (pursuant to Section II, Paragraph 4) related to RECIPIENT’s E&E PROJECT(s).

D. Biennially, or however frequently as VTA determines is appropriate based upon the number of ongoing E&E PROJECTs, report to the public the effectiveness of the BIKE/PED E&E PROGRAM based on the assessment described immediately above in Section II, Paragraph 6(C).

E. Remit the amount due to the RECIPIENT under an invoice within thirty (30) calendar days of receipt of a complete and proper, fully documented invoice complying with the requirements set forth herein.

7. RECIPIENT’s OBLIGATIONS
RECIPIENT must:

A. Comply with 2016 Measure B reporting requirements.

B. Ensure that all 2016 MEASURE B funds are expended on allowable BIKE/PED E&E PROGRAM expenditures as described above in Section II, Paragraph 3, ELIGIBLE USE OF FUNDS.

C. Annually complete and submit to VTA, by October 1st of each year, RECIPIENT’s proposed work program for the BIKE/PED E&E PROGRAM, in which RECIPIENT must set forth proposed E&E PROJECTS and develop all such E&E PROJECTS that are approved by VTA as eligible. RECIPIENT’s proposed metrics and frequency of E&E PROJECT evaluation must be included with the proposed work program (see Section II, Paragraph 4); VTA must provide approval of the proposed metrics and frequency of evaluation.

D. Annually submit to VTA, by October 1st of each year, a summary of the prior fiscal year’s completed E&E PROJECTS.

E. Submit to VTA, on a frequency as approved by VTA, the evaluation of the completed E&E PROJECTS pursuant to Section II, Paragraph 4.

F. If applicable, annually submit to VTA, by October 1st of each year, an explanation of why no BIKE/PED E&E PROGRAM funds are planned for expenditure during the upcoming fiscal year.

G. Annually complete and submit to VTA, by October 1st of each year, any accompanying reporting requirements for the BIKE/PED E&E PROGRAM.

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H. Submit to VTA all records including contractors’ invoices, miscellaneous invoices, and force account charges as substantiation for invoices submitted to VTA for reimbursement hereunder.

I. Maintain financial records, books, documents, papers, accounting records, and other evidence pertaining to costs related to this AGREEMENT for five (5) years. RECIPIENT shall make such records available to VTA upon VTA’s written request for review and audit purposes. Financial audits will be performed at VTA’s sole discretion.

J. Submit invoices to VTA, no more frequently than monthly, for reimbursement of eligible E&E PROJECT costs (see Section II, Paragraph 3) RECIPIENT must submit invoices within one year of the date RECIPIENT incurs the cost submitted on the invoice for reimbursement (unless otherwise approved by VTA in writing).

K. At all times during this AGREEMENT, RECIPIENT must comply with the insurance requirements and specifications of the attached Attachment C, Insurance Requirements. RECIPIENT may, in its discretion, elect to self-insure, but any such self-insurance must meet the requirements and specifications in Attachment C.

8. INDEMNIFICATION
Neither VTA nor any officer or employee thereof will be responsible for any damage or liability arising out of or relating to RECIPEINT’s negligent acts or omissions, recklessness, or willful misconduct RECIPIENT’s acts or omissions under or in connection with any work, authority, or jurisdiction associated with this AGREEMENT. Pursuant to California Government Code §895.4, RECIPIENT must fully defend, indemnify, and hold harmless VTA from all suits or actions of every name, kind, and description arising from an injury (as defined by California Government Code §810.8) arising out of or relating to RECIPEINT’s negligent acts or omissions, recklessness, or willful misconduct RECIPIENT’s acts or omissions under or in connection with any work, authority, or jurisdiction delegated to RECIPIENT under this AGREEMENT. This provision will survive the termination or expiration of this AGREEMENT.

9. INSURANCE
At all times during this Agreement, RECIPIENT must comply with the insurance requirements and specifications of Attachment C, Insurance Requirements, attached hereto and incorporated herein.

RECIPIENT may, in its discretion, elect to self-insure, but any such self-insurance must meet the requirements and specifications in Attachment C.

10. ADDITIONAL INSURED AND INDEMNITY PROVISION
In any agreement executed between the RECIPIENT and a third party for purposes related in any way to the subject matter of this Agreement (“Third Party Contract”), RECIPIENT must require that VTA be named as (i) an additional insured on a primary and non-contributory basis with separation of insureds and waiver of subrogation on all policies of insurance, except when not applicable and (ii) an indemnified party in any indemnity provision contained in the Third Party Contract. Third Party Contracts must contain insurance requirements with coverages at least as broad as, and limits at least as great as, the requirements of Attachment C.

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11. COMPLIANCE WITH APPLICABLE LAW
In execution of any E&E PROJECT and performance of its responsibilities set forth herein, RECIPIENT must comply with all applicable requirements of local, state, and federal law.

12. COMPLIANCE WITH 2016 MEASURE B REQUIREMENTS
A. In its performance under this AGREEMENT, RECIPIENT must comply, and must ensure E&E PROJECT compliance, with all PROGRAM requirements including, but not limited to, the GUIDELINES and PROGRAM MANUAL.

B. VTA may, in its sole discretion, make changes to the GUIDELINES and/or the PROGRAM MANUAL at any time. If VTA makes such changes, VTA will notify RECIPIENT within a reasonable time of such changes.

13. TERMINATION
A. Either PARTY may at any time terminate this Agreement by giving ten (10) business days written notice of such termination to the other PARTY. Notice must identify the effective date of such cancellation and must be provided in accordance with the terms and conditions of this AGREEMENT.

B. In the event of termination under this section, City must submit its final invoice to VTA within thirty (30) calendar days of the effective date of termination, and such invoice will be solely for ELIGIBLE COSTS RECIPIENT incurred prior to termination.

14. AUDITS AND RECORDS
A. RECIPIENT must maintain, and must require their contractors to maintain, in accordance with generally accepted accounting principles and practices, complete books, accounts, records, and data pertaining to services performed under this AGREEMENT, including the costs of contract administration. Such documentation must be supported by properly executed payrolls, invoices, contracts, and vouchers evidencing in detail the nature and propriety of any charges and must be sufficient to allow a proper audit of services. All checks, payrolls, invoices, contracts, and other accounting documents pertaining in whole or in part to the services must be clearly identified and readily accessible.

B. For the duration of the AGREEMENT, and for a period of five years after final payment, each PARTY and its representatives must have access during normal business hours to any books, accounts, records, data, and other relevant documents (“RECORDS”) of the other PARTY that are pertinent to this AGREEMENT for audits, examinations, excerpts, and transactions. The other PARTY must furnish copies of the RECORDS upon request.

15. NOTICES / AUTHORIZED REPRESENTATIVES
A. Notices. Any notice which may be required under this AGREEMENT (i) must be in writing, (ii) will be effective one (1) business day after personal service or delivery by certified mail, and (iii) must be given by personal service or certified mail the other PARTY’S AUTHORIZED REPRESENTATIVE at

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the addresses set forth below, or to such other address that may be specified in writing by a PARTY.

B. Authorized Representatives.

VTA:

Marcella Rensi
Deputy Director, Programming and Grants
Santa Clara Valley Transportation Authority
3331 N First Street
San Jose, CA 95134
Email: [email protected]
RECIPIENT:

Peter Pirnejad
City Manager
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
Email: [email protected]
Written notification to the other PARTY must be provided, in advance, for changes in the name or address of the individuals identified above.

The individual identified above for RECIPIENT is RECIPIENT’s BIKE/PED E&E PROGRAM Liaison (“LIAISON”). The LIAISON shall be (i) the liaison to VTA pertaining to implementation of this AGREEMENT and (ii) the contact for information about the BIKE/PED E&E PROGRAM and E&E PROJECTS.

16. GENERAL TERMS AND CONDITIONS
A. Headings. The subject headings of the articles and paragraphs in this AGREEMENT are included for convenience only and will not affect the construction or interpretation of any of its provisions.

B. Incorporation of Exhibits and Attachments. All exhibits and attachments referenced in this AGREEMENT are incorporated into it by this reference.

C. Construction and Interpretation of Agreement. This AGREEMENT, and each of its provisions, terms, and conditions, has been reached as a result of negotiations between the PARTIES.

Accordingly, each PARTY expressly acknowledges and agrees that (i) this AGREEMENT will not be deemed to have been authored, prepared, or drafted by any particular PARTY and (ii) the rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this AGREEMENT or in the resolution of disputes.

D. Amendment. No alteration or variation of the terms of this AGREEMENT will be valid unless made in writing and signed by both of the PARTIES hereto, and no oral understanding or AGREEMENT not incorporated herein will be binding on any of the PARTIES hereto.

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E. Entire Agreement. This AGREEMENT constitutes the entire agreement between the PARTIES relating to the subject matter and supersedes all prior negotiations, contracts, agreements, or understandings, whether oral or written, of the PARTIES regarding the subject matter.

F. Representation of Authority. Each PARTY to this AGREEMENT represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this AGREEMENT on behalf of the entity that is a PARTY to this AGREEMENT.

G. No Waiver. The failure of either PARTY to insist upon the strict performance of any of the terms, covenant, and conditions of this AGREEMENT will not be deemed a waiver of any right or remedy that either PARTY may have, and will not be deemed a waiver of either PARTY’s right to require strict performance of all of the terms, covenants, and conditions hereunder.

H. Dispute Resolution.
a. If a question or allegation arises regarding (i) interpretation of this AGREEMENT or its performance, or (ii) the alleged failure of a PARTY to perform, the PARTY raising the question or making the allegation must give written notice thereof to the other PARTY. The PARTIES must promptly meet in an effort to resolve the issues raised. If the PARTIES fail to resolve the issues raised, alternative forms of dispute resolution, including mediation, may be pursued by mutual agreement. It is the intent of the PARTIES to avoid litigation as a method of dispute resolution to the greatest extent possible.
b. Notwithstanding the foregoing, nothing in this Paragraph 16 will be deemed to prevent a PARTY from filing suit or an administrative action to preserve its right to assert a claim within any applicable statute of limitations. To the extent practicable, the PARTIES will negotiate in good faith to create a tolling agreement to toll such statute(s) of limitations to allow for the PARTIES to engage in dispute resolution provisions of this AGREEMENT prior to filing of such actions.

I. Severability. If any term, covenant, condition or provision of this AGREEMENT, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions and provisions of this AGREEMENT, or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

J. Governing Law. The laws of the State of California will govern this AGREEMENT, as well as any claim that might arise between RECIPIENT and VTA, without regard to conflict of law provisions.

K. Venue. Any lawsuit or legal action arising from this AGREEMENT must be commenced and prosecuted in the courts of Santa Clara County, California. RECIPIENT agrees to submit to the personal jurisdiction of the courts located in Santa Clara County, California for the purpose of litigating all such claims.

L. Use of Work. All PARTIES may retain a copy of all material produced under this AGREEMENT for use in their general activities.

M. Attribution to VTA. RECIPIENT must include attribution to VTA that indicates part of the work was funded by PROGRAM Funds. This provision applies to any project or publication that was funded

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in part or in whole by PROGRAM Funds. Acceptable forms of attribution include 2016 MEASURE B’s branding on E&E PROJECT-related documents, public information materials, and any other applicable documents. VTA will provide Program branding to RECIPIENT.

N. Non-discrimination. The PARTIES and any contractors performing services on behalf of the PARTIES (“CONTRACTORS”) will not unlawfully discriminate or permit discrimination, harass, or allow harassment against any person or group of persons because of race, color, religious creed, national origin, ancestry, age (over 40), sex, gender, gender identity, gender expression, sexual orientation, marital status, pregnancy or childbirth (including related conditions), medical condition (including cancer), mental disability, physical disability (including HIV and AIDS), genetic information, or military and veteran’s status, or in any manner prohibited by federal, state, or local laws. In addition, the PARTIES and CONTRACTORS must not unlawfully deny any of their employees family care leave to which they are entitled or discriminate against such employees on the basis of having to use family care leave. The PARTIES and CONTRACTORS must ensure that the evaluation and treatment of their employees and applicants for employment is free of such discrimination and harassment.

O. Relationship of the Parties. It is understood that this is an AGREEMENT by and between independent parties and does not create the relationship of agent, servant, employee, partnership, joint venture or association, or any other relationship other than that of independent contractor.

P. Execution in Counterparts / Electronic Signature. This AGREEMENT may be executed in one or more counterparts, each of which will be deemed an original but all of which will constitute one and the same instrument. An electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature.

The term “electronic copy of a signed contract” refers to a copy of an original signed contract that meets the admissibility standards of a writing described in Evidence Code §1550. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by each of the Parties.

Q. Authority to Execute Agreement. Each PARTY to this AGREEMENT represents and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this AGREEMENT on behalf of the entity that is a PARTY to this AGREEMENT.

R. Third Party Beneficiaries. This AGREEMENT does not, and is not intended to, confer any rights or remedies upon any person or entity other than the PARTIES.

S. Survival. All representations, warranties, and covenants contained in this AGREEMENT, or in any instrument, certificate, exhibit, or other writing intended by the PARTIES to survive this AGREEMENT, shall survive the termination or expiration of this AGREEMENT, including but not limited to all terms (1) providing for indemnification; (2) relating to the California Public Records Act; (3) relating to maintenance of data; and (4) relating to PARTIES’ obligations upon and following termination or expiration of this AGREEMENT.

Signatures of PARTIES on following page.

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IN WITNESS WHEREOF, VTA and RECIPIENT have caused their undersigned, duly authorized signatories to execute this AMENDED AND RESTATED FUNDING AGREEMENT as of the EFFECTIVE DATE.

SANTA CLARA VALLEY TOWN OF LOS ALTOS HILLS

TRANSPORTATION AUTHORITY
Carolyn M. Gonot Peter Pirnejad
General Manager/CEO City Manager
Date Date
Approved as to Form Approve as to Form
Name
VTA Legal
Steve T. Mattas
City Attorney
Date Date

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ATTACHMENT A
Example Evaluation Requirement Metrics
Evaluation metrics include, but are not limited to, the ones used below. • Project reach - A metric measuring the total number of people or entities that participated in the activity or received a physical item provided by the program. o Hypothetical Example: Online media safety campaign had 10,000 unique views, resulting in 2,000 people taking the “I will drive, walk, and bike safely and responsibly” pledge. • Mode shift - A metric measuring the change in the number or percentage of people who replaced another mode of transportation with walking or biking. o Hypothetical Example: At the end of the school year, 200 bicycles were counted in the bike cage, an increase of 20% over the number of bicycles counted at the beginning of the year.
• Behavior change - A metric measuring the change in the number or percentage of people who changed their travel habits, including but not limited to frequency of walking or biking. o Hypothetical Example: Individualized marketing packets were provided to 1,200 households. 200 households requested additional information. Before and after surveys showed that 5% of households that requested additional information switched to biking, walking, or taking transit more.
• Safety improvements – A metric measuring the change in risky/safe behavior or the change in crashes.
o Hypothetical Example: After the crosswalk sting, motorists were observed yielding to pedestrians 8 out of 10 times, an increase of 10% over the yielding rate before the crosswalk sting. However, these rates decreased over time, suggesting that continued events or infrastructure changes are needed to permanently improve driver behavior. • Community Engagement – A metric measuring the number or percentage of people who become involved in a program on an ongoing basis.
o Hypothetical Example: At the end of five Train the Trainer events, of the 25 trainees, ten agree to lead Safe Routes to School activities at their schools.

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ATTATCHMENT B

LOW POP CITES ALLOCATION SCHEDULE
Cities that would receive less than $10,000 as a result of the allocation calculations are instead allocated $10,000 minimum per fiscal year. The minimum $10,000 allocation will continue through fiscal year 2028. Following fiscal year 2028, the minimum allocated to LOW POP CITIES will increase every biennial budget cycle.

The allocation schedule starting fiscal year 2028 is as follows:

Fiscal Year (FY) Allocation Amount to LOW POP CITIES
FY 2028 $12,000
FY 2029 $12,000
FY 2030 $12,000
FY 2031 $12,000
FY 2032 $12,000
FY 2033 $12,000
FY 2034 $14,000
FY 2035 $14,000
FY 2036 $14,000
FY 2037 $14,000
FY 2038 $14,000
FY 2039 $14,000
FY 2040 $16,000
FY 2041 $16,000
FY 2042 $16,000
FY 2043 $16,000
FY 2044 $16,000
FY 2045 $16,000
FY 2046 $18,000
FY 2047 $18,000

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ATTACHMENT C

INSURANCE REQUIREMENTS
RECIPIENT’S ATTENTION IS DIRECTED TO THE INSURANCE REQUIREMENTS BELOW. IT IS HIGHLY

RECOMMENDED THAT RECIPIENT CONFER WITH THEIR INSURANCE CARRIERS OR BROKERS IN

ADVANCE OF PROPOSAL SUBMISSION TO DETERMINE THE AVAILABILITY OF INSURANCE CERTIFICATES AND ENDORSEMENTS REQUIRED BY THIS AGREEMENT.

INSURANCE
Without limiting RECIPIENT’s obligation to indemnify and hold harmless VTA, RECIPIENT must procure and maintain for the duration of the AGREEMENT insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Work hereunder by RECIPIENT, its agents, representatives, or employees, or subcontractors. The cost of such insurance must be included in AGREEMENT price. In the event of any material change in the AGREEMENT Scope of Services, VTA reserves the right to change the insurance requirements set forth herein. RECIPIENT must furnish complete copies of all insurance policies, within three (3) business days of any request for such by VTA.

A. Liability and Workers’ Compensation Insurance

1. Minimum Scope of Coverage
Coverage must be at least as broad as:
a. Insurance Services Office General Liability coverage (“occurrence” form CG 0001). General Liability insurance written on a “claims made” basis is not acceptable. b. Insurance Services Office Business Auto Coverage, Insurance Services Office form number CA 0001, covering Automobile Liability, code 1 “any auto.” Auto Liability written on a “claimsmade” basis is not acceptable. c. Workers’ Compensation insurance as required by the Labor Code of the State of California, and Employer’s Liability insurance.
d. Professional Liability, including limited contractual liability coverage, covering liability arising out of any negligent act, error, mistake or omission in the performance of RECIPIENT’s services under this AGREEMENT. This coverage must be continuously maintained for a minimum of two (2) years following completion of this AGREEMENT. This coverage may be written on a “claims made” basis, if so, please see special provisions in Section B.

2. Minimum Limits of Insurance
RECIPIENT must maintain limits no less than:

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a. General Liability (including Umbrella/Excess insurance): $2,000,000 limit per occurrence for bodily injury, personal injury, and property damage. If a General Liability or other form with a general aggregate limit is used, either the general aggregate limit must apply separately to this project/location or the general aggregate limit must be twice the required occurrence limit. This requirement may be satisfied by a combination of General Liability insurance with Excess or Umbrella policies, but in no event may the General Liability primary policy limit per occurrence be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying policy, “Follow Form” coverage, and a “Drop Down”.
b. Automobile Liability $1,000,000 limit per accident for bodily injury and property damage. c. Workers’ Compensation and Employer’s Liability: Statutory Workers’ Compensation limits and Employer’s Liability limits of $1,000,000 per accident. d. Professional Liability: $2,000,000 each occurrence/aggregate minimum limit per claim.

This requirement may be satisfied by a combination of Professional Liability insurance with Excess or Umbrella policies, but in no event may the Professional Liability primary policy limit per occurrence be less than $2,000,000, unless Umbrella/Excess policies feature inception and expiration dates concurrent with the underlying policy, “Follow Form” coverage, and a “Drop Down” provision.

3. Self-Insured Retention
The certificate of insurance must disclose the actual amount of any deductible or self-insured retention, or lack thereof, for all coverages required herein. Any self-insured retention or deductible in excess of $50,000 ($100,000 if RECIPIENT is a publicly-traded company) must be declared to and approved by VTA. If RECIPIENT is a governmental authority such as a state, municipality or special district, self-insurance is permitted. To apply for approval for a level of retention or deductible in excess of $50,000, RECIPIENT must provide a current financial report including balance sheets and income statements for the past three years, so that VTA can assess RECIPIENT’s ability to pay claims falling within the self-insured retention or deductible.

Upon review of the financial report, if deemed necessary by VTA in its sole discretion, VTA may elect one of the following options: to accept the existing self-insured retention or deductible; require the insurer to reduce or eliminate the self-insured retention or deductible as respects VTA, its directors, officers, officials, employees and volunteers; or to require RECIPIENT to procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. Applicable costs resulting therefrom will be borne solely by RECIPIENT. RECIPIENT may request execution of a nondisclosure agreement prior to submission of financial reports.

B. Claims Made Provisions (not applicable to General Liability or Automobile Liability) Claims-made coverage is never acceptable for General Liability or Auto Liability. Claims-made may be considered for Professional, Environmental/Pollution, or Cyber Liability. If coverage is written on a claims-made basis, the Certificate of Insurance must clearly state so. In addition to all other coverage requirements, such policy must provide that:

ITEM 5F Attachment 4
Rev 1.17.25 Page 17 of 19

1. The policy must be in effect as of the date of this AGREEMENT and the retroactive date must be no later than the date of this AGREEMENT.

2. If any policy is not renewed or the retroactive date of such policy is to be changed, RECIPIENT must obtain or cause to be obtained the broadest extended reporting period coverage available in the commercial insurance market. This extended reporting provision must cover at least two (2) years.

3. No prior acts exclusion may be added to the policy during the contract period.

4. The policy allows for reporting of circumstances or incidents that might give rise to future claims.

C. Other Provisions
The policies must contain, or be endorsed to contain, the following provisions:

1. General Liability and Automobile Liability
a. VTA, its directors, officers, officials, employees and volunteers are to be named as additional insureds as respects: liability arising out of activities performed by or on behalf of RECIPIENT, including VTA’s general supervision of RECIPIENT; products and completed operations of RECIPIENT and its subcontractors; premises owned, occupied or used by RECIPIENT; or automobiles owned, leased, hired or borrowed by RECIPIENT. The coverage must contain no special limitations on the scope of protection afforded to VTA, its directors, officers, officials, employees, or volunteers. Additional Insured endorsements must provide coverage at least as broad as afforded by the combination of ISO CG 20 10 10 01 and CG 20 37 10 01.
b. Any failure to comply with reporting provisions of the policies may not affect coverage provided to VTA, its directors, officers, officials, employees, or volunteers. c. RECIPIENT’s insurance must apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability. d. The General Liability General Aggregate limit must apply per project, not per policy. e. The General Liability policy must be endorsed to remove the exclusion for railroad liabilities, with coverage at least as broad as afforded by ISO CG 24 17.

2. All Coverages
a. The insurer must agree to waive all rights of subrogation against VTA, its directors, officers, officials, employees, and volunteers for losses arising from work performed by RECIPIENT and its subcontractors for VTA.

ITEM 5F Attachment 4
Rev 1.17.25 Page 18 of 19
b. RECIPIENT’s insurance coverage must be primary insurance as respects VTA, its directors, officers, officials, employees, and volunteers. Self-insurance or insurance that may be maintained by VTA, its directors, officers, officials, employees, or volunteers may apply only as excess to RECIPIENT’s insurance. RECIPIENT’s insurance must not seek contribution from VTA’s insurance program.

3. Other Insurance Provisions
a. The Certificate must disclose the actual amount of the Deductible or Self-Insured Retention
b. If any coverage forms or endorsements required by this AGREEMENT are updated by their publishers, whether they be the insurance carrier(s), the Insurance Services office, or the American Association of Insurance Services, during the duration of this AGREEMENT, VTA reserves the rights to require RECIPIENT to procure said coverage forms or endorsements using the updated versions upon the next renewal cycle.

D. Acceptability of Insurers
Insurance and bonds must be placed with insurers with an A.M. Best’s rating of no less than A VII (financial strength rating of no less than A and financial size category of no less than VII), unless specific prior written approval has been granted by VTA.

E. Certificates of Insurance
RECIPIENT must furnish VTA with a Certificate of Insurance. The certificates for each insurance policy are to be signed by an authorized representative of that insurer. The certificates must be issued on a standard ACORD Form. The RECIPIENT must instruct their insurance broker/agent to submit all insurance certificates and required notices electronically in PDF format to [email protected]. All endorsements must be attached to the ACORD certificate in a single PDF document.

The certificates must (1) identify the insurers, the types of insurance, the insurance limits, the SIRs/deductibles or lack thereof and the policy term, (2) include copies of all the actual policy endorsements required herewith, and (3) in the “Certificate Holder” box include:

Santa Clara Valley Transportation Authority (“VTA”)
3331 North First Street
San Jose, CA 95134-1906
In the Description of Operations/Locations/Vehicles/Special Items Box, the VTA Contract number must appear, the list of policies scheduled as underlying on the Umbrella/Excess policy must be listed, Certificate Holder must be named as additional insured, and Waiver of Subrogation must be indicated as endorsed to all policies as stated in the Contract Documents.

ITEM 5F Attachment 4
Rev 1.17.25 Page 19 of 19
It is a condition precedent to award of this AGREEMENT that all insurance certificates and endorsements be received and approved by VTA before AGREEMENT execution. No work may be performed until insurance is in full compliance. VTA reserves the rights to require complete, certified copies of all required insurance policies, at any time.

If RECIPIENT receives notice that any of the insurance policies required by this Exhibit may be cancelled or coverage reduced for any reason whatsoever, RECIPIENT must immediately provide written notice to VTA that such insurance policy required by this Exhibit is canceled or coverage is reduced.

F. Maintenance of Insurance
If RECIPIENT fails to maintain insurance as required herein, VTA, at its option, may suspend payment for work performed and/or may order RECIPIENT to suspend work at RECIPIENT’s expense until a new policy of insurance is in effect.

Ed. Rev. 10-1-19

TOWN OF LOS ALTOS HILLS February 20, 2025
Staff Report to the City Council
SUBJECT: RESOLUTION ACCEPTING A STORM DRAINAGE AND TEMPORARY USE EASEMENT AT 12871 ATHERTON COURT; LANDS OF THE HSU AND LIN FAMILY TRUST; FILE #SD24-0013
FROM: Jay Bradford, Community Development Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:

Adopt a Resolution (Attachment 1) accepting the grant of a storm drainage and temporary use easement at 12871 Atherton Court; Lands of The Hsu and Lin Family Trust.

BACKGROUND:

The subject property is a 1.383-acre lot with an average slope of 22.7%. Access to the site is provided by Atherton Court, a public street. The property is moderately sloped resulting in a LUF of 1.007 and a maximum development area (MDA) of 10,309 square feet and maximum floor area (MFA) of 5,403 square feet. An application for site development permit for a new residence was submitted to the Town on April 22, 2024, and approved by the Planning Commission on September 5, 2024.

DISCUSSION:

The subject property is at the corner of Atherton Court and Robleda Road. Robleda Creek flows east along Robleda Road varying between daylighted and undergrounded (piped) sections. The creek enters a buried pipe at the subject property continuing under Atherton Court before daylighting again at an adjacent property. It is presumed that the creek was buried on the project site by a prior property owner without the approval of the relevant regulatory agencies.

At the September 5, 2024 public hearing, the Planning Commission and staff discussed the history of this buried section and options for maintenance moving forward. The Town routinely requires open space easement dedication for creeks and drainage channels as a condition of development approval. Open space easements typically encompass the creek itself and 25 feet from top-of-bank on each side. This can result in open space easements for creeks exceeding 50 feet in width. Given that the buried creek is confined to a narrower area, the Planning Commission opted to require a 10-foot-wide easement that prevents the construction or installation of permanent structures but allows for maintenance of the easement area. Furthermore, the easement agreement (Attachment 2) requires the property owner (“Grantor”) to maintain the existing drainage facilities and explicitly states the Town (“Grantee”) is not responsible for maintenance. The agreement permits temporary use of the easement area, provided they are removed at the owner's expense. This provision was included to enhance the property owner's ability to utilize the space.

ENVIRONMENTAL REVIEW:

ITEM 5G

City Council Page 2
12871 Atherton Court
February 20, 2025
The storm drainage and temporary use easement dedication qualifies for the commonsense exemption outlined in CEQA Guidelines Section 15061(b)(3), as it can be found with certainty that the activity in question is not a project and, therefore, not subject to the provisions of CEQA. 2024-25 CITY COUNCIL WORK PLAN:

This is not part of the 2024-25 City Council Work Plan as easement dedications are, depending on applicability, part of the standard site development approval process.

FISCAL IMPACT:

There is no fiscal impact to the Town for review of easement dedications, agreements, or grant documents as the Town requires payment of a deposit of $3,500.00 to cover staff and consultant time. The deposit is generally not exceeded, and the remaining amount refunded, conversely, if the deposit is ever exceeded, additional funds would be requested to cover staff and consultant time. The recordation of the open space easement agreement with the County of Santa Clara requires payment of a recordation fee of $65.00.

CONCLUSION:

The easement dedication is consistent with the goals of the Town’s General Plan Land Use and Conservation Elements to protect creeks and drainage channels. The easement area, which is 1,815 square feet, includes portions of the property adjacent to a creek. The requirement for an easement over those portions of property adjacent to a creek or drainage channel is consistent with prior site development permit approvals. Staff recommends that the Council accept the easement agreement granting a storm drainage and temporary use easement to the Town at 12871 Atherton Court.

ATTACHMENTS

1. Resolution Accepting Grant of Storm Drainage and Temporary Use Easement

2. Storm Drainage and Temporary Use Easement Agreement

3. General Plan Land Use Element Goal 2/Program 2.1

4. SD24-0013 Planning Commission Resolution 06-24
Report prepared by: Jonathan Fox, Associate Planner

Resolution ____-25 Page 1
RESOLUTION ____-25

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS

APPROVING AGREEMENT FOR STORM DRAINAGE AND TEMPORARY USE

EASEMENT
(LANDS OF THE HSU AND LIN FAMILY TRUST)
WHEREAS, The Hsu and Lin Family Trust (“Owner”) owns the property commonly known as 12871 Atherton Court, Los Altos Hills, California (APN 175-37-036); and WHEREAS, Section 10-2.504 of the Los Altos Hills Municipal Code authorizes the Planning Director or Planning Commission, upon recommendation of the City Engineer, to require dedication of an easement sufficient to accommodate natural or installed drainage systems; WHEREAS, the Owner has offered to enter into an agreement for storm drainage and temporary use easement attached to this Resolution as Attachment A (“Agreement for Storm Drainage and Temporary Use Easement”) to limit the use of a portion of the property in order to maintain natural or installed storm drainage systems;
WHEREAS, the Town finds the Agreement for Storm Drainage and Temporary Use Easement to be consistent with the Town’s General Plan and in the best interests of the Town; NOW, THEREFORE, BE IT RESOLVED the City Council of the Town of Los Altos Hills does hereby accepts on behalf of the public, and for the purposes therein described, the Agreement for Storm Drainage and Temporary Use Easement attached to this Resolution as Attachment A; and the Mayor is hereby authorized and directed to execute the Agreement for Storm Drainage and Temporary Use Easement.

The above and foregoing Resolution passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 20th day of February, 2025, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

BY: _______________________________
Kavita Tankha, Mayor
ATTEST:
______________________________
Arika Miller, City Clerk
ITEM 5G Attachment 1

ITEM 5G Attachment 2

Adopted May 8, 2008
Land Use Element
Los Altos Hills General Plan
Page LU-9
GOAL 2
Ensure that all development occurs in a manner that
minimizes disturbance of natural terrain, vegetation and wildlife, and maximizes the preservation of natural resources and open space.

Policy 2.1 Within incorporated Los Altos Hills and its sphere of influence dwelling types shall be limited to single-family detached residences, which may include a single secondary unit.

Policy 2.2 Residential densities shall be guided by considerations of topography, vegetative cover and significant physical limitations inherent in the natural environment.

Policy 2.3 The minimum parcel size shall be at least one acre and shall increase as the steepness of the land increases.

Policy 2.4 In subdividing land, the number of dwelling units permitted shall decrease as the steepness of the land increases.

Policy 2.5 Steep slopes, canyons and ravines generally in excess of 30% slope, as well as natural swales and drainage channels, and geologic hazard areas within areas designated for residential development shall be left undisturbed and preserved in their natural condition to the maximum extent feasible.

Policy 2.6 Limits on the development of individual residential lots shall be determined based on evaluation of such factors as natural vegetation, topographic characteristics, soils and geology.

Policy 2.7 The natural character of ridgelines shall be preserved to the maximum extent feasible.

Policy 2.8 Promote the use of green building methods and practices in the planning, design, construction, renovation, operations, and demolition of buildings.

Policy 2.9 The Town shall encourage the installation of drought-tolerant landscaping and other methods of reducing water use for landscaping.

Program 2.1 Continue to require the dedication of open space easements where appropriate as a condition of approval for new development. Each parcel shall be evaluated on a case-by-case basis during the site development review process to determine whether an open space easement should be required, based on the extent of steep slopes generally in excess of 30% slope and the presence of heritage oak trees and/or creek corridors.

Other considerations shall include the size of the proposed open space easement, its contiguity with existing open space easements, and whether the property is located within an Open Space Conservation Area.

ITEM 5G Attachment 3

ITEM 5G Attachment 4

ITEM 5H
TOWN OF LOS ALTOS HILLS February 20, 2025
Staff Report to the City Council
SUBJECT: ADOPT AN ORDINANCE (SECOND READING) AMENDING TITLE 2, CHAPTER 6 – CONFLICT OF INTEREST – OF THE LOS ALTOS HILLS

MUNICIPAL CODE REMOVING CONFLICT OF INTEREST

DESIGNATIONS
FROM: Steve Mattas, City Attorney SM
APPROVED: Peter Pirnejad, City Manager PP
RECOMMENDATION: That the City Council:

Waive a second reading and adopt the proposed Ordinance Amending Title 2, Chapter 6 of the Los Altos Hills Municipal Code (“Ordinance”) as included in Attachment 1.

BACKGROUND
Pursuant to the Political Reform Act, all local government agencies are required by law to adopt a Conflict-of-Interest Code that includes provisions designating the positions within the agency that will be required to report certain financial interests, the manner of reporting those financial interests, and standards for when the employees, committee members, commissioners or designated consultants will be disqualified from participating in the making of certain decisions.

The Town’s Conflict of Interest Code is codified in Chapter 6 of Title 2 of the Municipal Code.

All employees, commissioners, committee members, and consultants designated as filers in the Town’s Conflict of Interest Code must file conflict of interest disclosure statements using the Fair Political Practices Commission (“FPPC”) form Statement of Economic Interests (“Form 700”). (Gov. Code Section 87302). The Town’s Code does not designate the City Council, Planning Commission, City Manager, City Attorney, or Treasurer, but these positions are each required to file an FPPC Form 700 under Government Code section 87200.

Every two years the Town reviews and updates its Conflict-of-Interest Code. On October 20, 2022, the City Council adopted Ordinance 603, amending Title 2 of Chapter 6 of the Los Altos Hills Municipal Code, adding certain conflict of interest designations, including the Finance and Investment Committee, Environmental Design and Protection Committee, Pathways Committee, Open Space Committee, and Environmental Initiatives Committee, along with certain employee positions. The inclusion of the five Town committees was a voluntary action by the Town and is not required by law. Some committee members have expressed reservations about the designation of the committees in the Town’s Conflict of Interest Code. Based on these concerns, staff is recommending that the Council further amend the Conflict of Interest Code to remove the standing committees. If the Council adopts the proposed ordinance, the previously designated standing committee members would not be required to file an FPPC Form 700.

Staff Report to City Council Page 2
Conflict of Interest Code Update
February 20, 2025
Even if these standing committee members are not required to file Form 700s under the Town’s Conflict of Interest Code, other state laws continue to apply to town officials and employees.

For example, Government Code Section 1090 prohibits town officials from participating in the making of a contract in which they have a financial interest. Also, the common law conflict of interest doctrine requires that Town officials not participate in a decision if the member does not believe that they can participate in the matter with "disinterested skill, zeal and diligence and primarily for the benefit of the public" rather than for a private interest, in which case the member should recuse themselves from the decision. Both Government Code Section 1090 and the common law doctrine against conflict of interests exist under state law and will continue to apply to committee members, along with the City Council, Planning Commission, City Manager, City Attorney, City Treasurer, employees, among other positions.

If the City Council desires to adopt the recommended ordinance amendment, the City Council may desire to consider providing policy direction that any standing committee member who has a property interest, based on ownership of property within 1000 feet of any property, impacted by a decision continue to abstain from such a decision and that if a standing committee member has a financial interest in a decision or action by the standing committee that is distinguishable from the general public that the committee member abstain from the relevant decision.

DISCUSSION
On January 29, 2025, the City Council voted unanimously to waive reading and introduce the proposed Ordinance Amending Title 2, Chapter 6 of the Los Altos Hills Municipal Code (“Ordinance”) as included in Attachment 1. The Ordinance is now ready for adoption.

ENVIRONMENTAL REVIEW:

This action does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the Guidelines for California Environmental Quality Act. 2022 CITY COUNCIL STRATEGIC PRIORITIES
Amending the Code of Conduct was one of the Council’s 2022 Strategic Priorities. It was captured in the Key Project called “Increase Effective Use of Committees” and was identified as the milestone “Create Committee Norms.” The Conflict-of-Interest Code is a state requirement and is related to but separate from the Code of Conduct adopted separately by the Town.

FISCAL IMPACT
There is no fiscal impact associated with this proposed ordinance.

ATTACHMENTS

1. Proposed Ordinance Amending Title 2, Chapter 6 of the Los Altos Hills Municipal Code

Ordinance Page 1

ORDINANCE XX-XX

ORDINANCE OF THE CITY COUNCIL OF THE
TOWN OF LOS ALTOS HILLS AMENDING TITLE 2, CHAPTER 6

OF THE LOS ALTOS HILLS MUNICIPAL CODE REMOVING CONFLICT OF

INTEREST DESIGNATIONS
WHEREAS, the Political Reform Act requires every local government agency to review its conflict-of-interest code to determine if it is accurate or, alternatively, that the code must be amended; and
WHEREAS, following review of the code, it was determined that the amendments contained in this Ordinance were appropriate.

NOW, THEREFORE, the City Council of the Town of Los Altos Hills does hereby ORDAIN as follows:

1. Chapter 6 of Title 2 of the Los Altos Hills Municipal Code is hereby amended to read as follows (with additions in double underline and deletions in strikethrough):

CONFLICTS OF INTEREST
2-6.01 Purpose.

Pursuant to the provisions of Government Code Sections 87300, et seq., the following provisions constitute the Conflict-of-Interest Code for the Town of Los Altos Hills. Nothing contained herein is intended to modify or abridge the provisions of the Political Reform Act of 1974, as amended (Government Code Section 81000 et seq.). The provisions of this Code are additional to Government Code Section 87100 et seq., and other laws pertaining to conflicts of interest.
2-6.02 Incorporation of Model Code
The terms and provisions of 2 California Code of Regulations Section 18730 and any amendments to it duly adopted by the Fair Political Practices Commission is hereby incorporated herein by reference.
2-6.03 Designated Positions and Disclosure Categories.

The positions listed in this Section 2-6.03 are designated positions. Officers and employees holding those positions are designated public officials, and are deemed to make, or participate in the making of, decisions which may foreseeably have a material financial effect on a financial interest of the designated public official. Each designated public official shall file an annual statement disclosing that public official’s interests as required by the disclosure category applicable to that public official.

Designated Position Category
City Engineer/Public Works Director 1
ITEM 5H, Attachment 1

2 of 3
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
1 1
Senior Engineer
Associate Engineer
Assistant Engineer
Community Development Director
Senior Planner
Associate Planner
Assistant Planner
Building Technician
Planning Technician
Administrative Services Director
Finance Director
Deputy City Manager
Finance Manager
Management Analyst I
City Clerk
Assistant to the City Manager
Building Official
Deputy Building Official/Plan Examiner
Community Services Manager
Community Services Supervisor
Administrative Clerk/Technician
Finance and Investment Committee Members
Environmental Design and Protection
Committee Members
Pathways Committee Members
Open Space Committee Members
Environmental Initiatives Committee Members
Consultants 2
Category 1: Persons in this category shall disclose all of the following interests:
investments, interests in real property located either wholly or partially within the Town or within 2 miles of the Town’s boundaries, business positions and income—including loans, gifts and travel payments—from all sources.

Consultant Disclosure Category 2: Consultants shall disclose all of the interests required to be disclosed pursuant to Disclosure Category 1, subject to the following limitation: The City Manager may determine in writing that a particular consultant, although a “designated position,” is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this Chapter. Such written determination shall include a description of the consultant’s duties and, based upon that description, a statement of the extent of disclosure requirements. The City Manager’s determination is a public record and shall be retained for public inspection.

2. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid or unconstitutional, the remainder of this Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the Town of Los Altos Hills hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable. 1 1

Ordinance Page 3

3. EFFECTIVE DATE AND PUBLICATION. This ordinance shall become effective thirty (30) days from the date of its passage. Within 15 days after its passage, this ordinance shall be published once, with the names of those City Councilmembers voting for or against it, in the Los Altos Town Crier, a newspaper of general circulation in the Town of Los Altos Hills, as required by law.

INTRODUCED:

PASSED:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

BY: _________________________
Mayor
ATTEST:
_________________________
City Clerk
APPROVED AS TO FORM:
_________________________
City Attorney
5270538.1

ITEM 5I
REVISED 2.13.25
TOWN OF LOS ALTOS HILLS February 20, 2025
Staff Report to the City Council
SUBJECT: RESOLUTION ADOPTING THE REVISED INVESTMENT POLICY FROM: Thomas Leung, Finance Director
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council:

Approve resolution adopting the revised investment policy.

DISCUSSION:

The Town’s Investment Policy provides guidance to staff and advisors for all investment activities.

State law requires local government Treasurers to present an investment policy for review at a public meeting. The Town’s current policy, which outlines eligible securities and maturities, was last approved by the City Council on February 16, 2023.

The Town’s investment advisor, PFM, has proposed updates to the Town’s Investment Policy to align with recent legislative changes and enhance investment flexibility. These updates are detailed in Attachment 3 and summarized below:

Regulatory Updates
• GASB Statement No. 98: Updated terminology from "CAFR" to "ACFR" per new accounting standards.
• Senate Bill 1489 (2022):
o Clarified that investment maturities are measured from settlement date to final maturity and set a 45-day limit on forward settlement dates.
o Extended quarterly reporting deadline to 45 days (previously 30 days). • Senate Bill 882 (2023):
o Federal agency-issued mortgage-backed securities (MBS) are now explicitly exempt from private MBS restrictions.
o Added Asset- and Mortgage-Backed Securities as an authorized investment category.

Investment Policy Enhancements
• Commercial Paper Limits Adjusted Based on Portfolio Size:
o Under $100M portfolio: Maximum 25% of total investments, 5% per issuer. o $100M+ portfolio: Maximum 40% of total investments, 5% per issuer. • Expanded Permissible Investments to reflect recent state law changes.

On February 3, 2025, the Finance and Investment Committee reviewed, discussed, and recommended acceptance of changes. Attachment 2 contains the entire Investment Policy with changes redlined.

ENVIRONMENTAL REVIEW:

This action does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the Guidelines for California Environmental Quality Act.” 2024-25 CITY COUNCIL WORK PLAN:

The policy is not on the City Council’s Work Plan items for 2024-25.

FISCAL IMPACT:

There is no fiscal impact.

ATTACHMENTS

1. Resolution

2. Investment Policy Redlined

3. Investment Policy Memo

ITEM 5I Attachment 1
REVISED 2.13.25
Resolution ____ - 25
RESOLUTION No. xx-25

RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS

ADOPTING THE REVISED INVESTMENT POLICY
WHEREAS, on October 15, 2020 the City Council reviewed and adopted the Revised Town of Los Altos Hills Investment Policy; and
WHEREAS, investment policies guide staff and their advisors for all investment activities on behalf of local government agencies; and
WHEREAS, those investment activities are primarily governed by the individual entity’s adopted investment policy and by California state law (Government Code sections 53600- 53610); and WHEREAS, the Investment Policy for the Town of Los Altos Hills is consistent with state law and, for the purpose of added safety and liquidity, is more restrictive than the state law; and WHEREAS, the Finance and Investment Committee (FIC) has reviewed changes to the Investment Policy (Attachment A) and voted in favor of sending the amended policy to Council for its review and approval; and
NOW THEREFORE, resolved by the City Council of the Town of Los Altos Hills that the Council hereby adopts the Town’s Revised Investment Policy as presented.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 20th day of February 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

BY:

ATTEST: Kavita Tankha Mayor
Arika Birdsong-Miller, City Clerk

Updated 2/20/2025 Town of Los Altos Hills
2024-25 Investment Policy
ITEM 5I Attachment 2
REVISED 2.13.25

TOWN OF LOS ALTOS HILLS
2024-2025 INVESTMENT POLICY

1.0 Philosophy
It is the policy of the Town of Los Altos Hills to invest public funds in a manner that will provide a reasonable rate of investment return while minimizing exposure to loss of capital and thereby maintaining a consistent source of revenues for the Town. This policy establishes the parameters for the Town’s investment strategies.

2.0 Delegation of Authority
Authority to manage the Town of Los Altos Hills’ investment program is derived from the California Government Code Section 53600 et seq. The City Council shall approve all modifications to the investment strategy and the selection or dismissal of an investment advisor. Administration of the Council-approved investment strategy is hereby delegated to the City Manager, who shall be responsible for supervising all treasury activities of the Town’s Finance Director and who shall establish written procedures for the operation of the investment program consistent with this investment policy. Procedures should include reference to: safekeeping, delivery vs. payment, investment accounting, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegations of authority to persons responsible for investment transactions. No person may engage in any investment transactions except as provided under the terms of this policy and the procedures established by the City Manager or her/his designee. The City Manager or her/his designee shall be responsible for all transactions undertaken and shall establish a system of controls to regulate the activities of subordinate officials.

3.0 Scope
This investment policy applies to all financial assets of the Town of Los Altos Hills. These funds are accounted for in the Town of Los Altos Hills’ Annual Comprehensive Financial Report (ACFR) and include:

3.1 Funds
General Fund Enterprise Funds
Special Revenue Funds Capital Projects Funds
Trust and Agency Funds
Any new fund, unless specifically exempted

Updated 2/20/2025 Town of Los Altos Hills
2 2024-25 Investment Policy

3.2 The following financial assets are excluded:

Deferred Compensation Plans – Investments are directed by the individual plan participants.

Debt Service Funds Held by Trustees – Investments are placed in accordance with bond indenture provisions.

Notes and Loans – Investments are authorized by separate agreements approved by City Council.

Retiree and Retiree Medical Plans
Except as noted, the Town of Los Altos Hills will consolidate cash balances from all funds to maximize investment earnings. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

4.0 Prudence
Investments shall be made with judgment and care – under circumstances then prevailing – which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investments, considering the probable safety of their capital as well as the probable income to be derived.

4.1 Standard of prudence: The standard of prudence to be used by investment officials shall be the “prudent investor” standard and shall be applied in the context of managing an overall portfolio. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency.

5.0 Objective
The primary objectives, in priority order, of the Town of Los Altos Hills’ investment activities shall be:

5.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the Town of Los Altos Hills shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective is to minimize (1) credit risk, through diversifying the portfolio among the authorized investment types with pre-qualifying financial institutions and broker dealers, and (2) interest rate risk, by

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structuring portfolio maturities to match cash requirements and investing operating funds in shorter-term securities.

5.2 Liquidity: The Town of Los Altos Hills’ investment portfolio will remain sufficiently liquid to enable the Town of Los Altos Hills to meet all operating requirements which might be reasonably anticipated. In addition to structuring the portfolio so that securities mature concurrent with cash needs, suitable investments (Section 6.0) consist largely of securities with active secondary or resale markets.

5.3 Return on Investments: The Town of Los Altos Hills’ investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, commensurate with the Town of Los Altos Hills’ investment risk constraints and the cash flow characteristics of the portfolio.

6.0 Authorized and Suitable Investments
Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. Where credit requirements in this section refer to a minimum credit rating, this minimum is regardless of any category modifiers such as “+” or “-”. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the City Manager will perform a timely review and decide whether to sell or hold the investment.

The Town of Los Altos Hills is empowered by Government Code Section 53601, 53601.6, 53601.8, 53635, 53635.2, 53638, and 53684 which includes a number of requirements on how and where public money may be invested. Within the context of limitations, the following investments are authorized, as further limited herein. A security purchased in accordance with this section shall not have a forward settlement date exceeding 45 days from the time of investment. The Town is empowered by statute to invest in the following type of securities:

1. United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.

2. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States governmentsponsored enterprises.

Obligations of the State of California or any local agency within the state, including bonds payable solely out of revenues from a revenue-producing property owned, controlled or operated by the state or any local agency or by a department, Commission, agency or authority of the state or any local agency; provided that the obligations are rated in one of the three highest categories by a

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nationally recognized statistical rating organization (NRSRO). Purchases of municipal obligations in sections 3 and 4 combined may not exceed 30 percent of the Town's investment portfolio.

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3. Registered treasury notes or bonds of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenueproducing property owned, controlled, or operated by a state, or by a department, board, agency, or authority of any of these states; provided that the obligations are rated in one of the three highest categories by a NRSRO. Purchases of municipal obligations in sections 3 and 4 combined may not exceed 30 percent of the Town's investment portfolio.

4. Bankers’ Acceptances with a rating of the highest ranking or highest letter and number rating as provided for by a NRSRO. Purchases of bankers’ acceptances may not exceed 180 days. No more than 40% of the Town’s investment portfolio may be invested in bankers’ acceptances and no more than 30% of the Town’s investment portfolio may be invested in the bankers’ acceptances of any one commercial bank.

5. Commercial paper of “prime” quality of the highest ranking or of the highest letter and number rating as provided for by a nationally recognized statistical rating organization (NRSRO). The entity that issuesthe commercial paper shall meet all of the following conditions in either paragraph (1) or (2):
(1) The entity meets the following criteria:
(A) Is organized and operating in the United States as a general corporation.
(B) Has total assets in excess of five hundred million dollars ($500,000,000).
(C) Has debt other than commercial paper, if any, that is rated in a rating category of “A” or its equivalent or higher by an NRSRO. (2) The entity meetsthe following criteria:
(A) Is organized within the United States as a special purpose corporation, trust, or limited liability company.
(B) Has program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (C) Has commercial paper that is rated “A-1” or higher, or the equivalent, by an NRSRO.

Eligible commercial paper associated with less than $100,000,000 of investments shall have a maximum maturity of 270 days or less. Local agencies, other than counties or a city and county, may invest no more than 25% of their moneys and no more than 5% per issuer in eligible commercial paper.

Eligible commercial paper associated with more than or equal to $100,000,000 of investments and Pooled Funds shall have a maximum maturity of 270 days or less.

Local Agencies other than counties or a city and county, may invest no more than 40% of theirs moneys and no more than 5% per issuer in eligible commercial paper.

The Town may purchase no more than 10% of the outstanding commercial paper of any single issuer.

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6. FDIC insured or fully collateralized time certificates of deposit in financial institutions located in California, including U.S. branches of foreign banks licensed to do businessin California. All time deposits must be collateralized

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in accordance with California Government Code section 53651. Purchase of FDIC insured or fully collateralized time certificates of deposit may not exceed 50% of the Town's investment portfolio.

7. Negotiable Certificates of Deposit (CD) issued by a nationally or statechartered bank, a savings association or a federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a federally- or state-licensed branch of a foreign bank. No more than 30% of the Town’s portfolio may be invested in negotiable CDs and eligible CDs must be rated in one of the three highest categories by a NRSRO.

8. Local Agency Investment Fund (LAIF). Investments in LAIF shall not exceed $75 million.

9. Insured savings account or bank money market account. In accordance with California Government Code Section 53635.2 to be eligible to receive local agency deposits a financial institution must have received a minimum overall “satisfactory” rating for meeting the credit needs of California communities in its most recent evaluation.

10. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a1, et seq.). To be eligible for investment pursuant to this subdivision these companies shall either: (1) attain the highest ranking letter or numerical rating provided by not less than two of the three largest nationally recognized rating services or (2) have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds and with assets under management in excess of $500,000,000. The purchase price of shares shall not exceed 20% of the investment portfolio and 10% per money market fund.

11. California Asset Management Program. (CAMP), as long as the portfolio is rated among the top two rating categories by a NRSRO. There is no limit on the percentage of CAMP that may be held in the Town’s portfolio.

12. Medium-term notes, defined as all corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. Notes eligible for investment under this subdivision shall be rated in a rating category of "A" or its equivalent or better by a nationally recognized rating serviceNRSRO. Purchases of medium-term notes shall not include other instruments authorized by this section and may not exceed 30% of the agency's money and 5% per issuer that may be invested pursuant to this section.

13. United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for

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Reconstruction and Development, International Finance Corporation, or InterAmerican Development Bank, with a maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA” or its equivalent or better by an NRSRO and shall not exceed 30% of the agency’s moneys that may be invested pursuant to this section. (Supranationals).

14. Mortgage Pass-Through and Asset-Backed Securities including equipment lease-backed certificates, consumer receivable passthrough certificates, or consumer receivable-backed bonds of a maximum remaining maturity of five year. Securities eligible for investment under this subdivision shall be rated in a rating category of "AA,” its equivalent or better by at least one NRSRO. Purchase of securities authorized by this subdivision may not exceed 20 percent of the Town’s total portfolio.

Summary Table of Permitted Investments
Investment Instruments
Calif. Code Limitation
(Maturity, % of
Portfolio, Rating)
Town Policy Limitation
(Maturity, % of
Portfolio, Rating)
U.S. Treasury 5 years
100% of portfolio
5 years
100% of portfolio
Federal Agency
(including mortgagebacked securities and
callable securities)
5 years
100% of portfolio
5 years
100% of portfolio
Municipal Obligations
(including notesissued by
the State of California,
California local agencies,
and the other 49 states)
5 years
100% of portfolio
5 years
30% of portfolio
Credit rating category of
“A” or its equivalent or
higher by a NRSRO
Bankers’ Acceptances
180 days
40% of portfolio
40% per issuer
180 days
40% of portfolio
530% per issuer

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Commercial Paper (under
$100,000,000 of
investments)
270 days
25% of portfolio
10% per issuer
Long term credit rating
category of “A” and short
term rating of “A-1” or
its equivalent or higher
by a NRSRO
270 days
25% of portfolio
5% per issuer
Long term credit rating
category of “A” and short
term rating of “A-1” or its
equivalent or higher by a
NRSRO
Commercial Paper (min.
$100,000,000 of
investments) and Pooled
Funds
270 days
40% of portfolio
10% per issuer
Long term credit rating
category of “A” and short
term rating of “A-1” or its
equivalent or higher by a
NRSRO
270 days
40% of portfolio
5% per issuer
Long term credit rating
category of “A” and short
term rating of “A-1” or its
equivalent or higher by a
NRSRO

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Summary Table of Permitted Investments
Investment Instruments
Calif. Code Limitation
(Maturity, % of
Portfolio, Rating)
Town Policy Limitation
(Maturity, % of
Portfolio, Rating)
Deposits
(Collateralized/FDIC) 100%1 of portfolio 5 years50% of portfolio Negotiable CDs 5 years
30% of portfolio
5 years
30% of portfolio
5% per issuer
Credit rating category of
“A” or its equivalent or
higher by a NRSRO
LAIF $75 million $75 million
Money Market Funds
20% of portfolio
10% per fund 20% of portfolio
10% per fund
JPA
(CAMP) 100% of portfolio 100% of portfolio
Medium-Term Notes
5 years
30% of portfolio
10% per issuer
Credit rating category of
“A” or its equivalent or
higher by a NRSRO
5 years
30% of portfolio
5% per issuer
Credit rating category of
“A” or its equivalent or
higher by a NRSRO
Supranationals
5 years
30% of portfolio
Credit rating category of
“AA” or its equivalent
or higher by a NRSRO
5 years
30% of portfolioCredit
rating category of “AA”
or its equivalent or higher
by a NRSRO

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Mortgage Pass-through and
Asset-Backed Securities
5 years or less
20% of portfolio
Credit rating category of
“AA” or its equivalent or
higher by a NRSRO
5 years or less
20% of portfolio
Credit rating category of
“AA” or its equivalent or
higher by a NRSRO
1 For deposit placementservices.

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7.0 Authorized Financial Dealers and Institutions
To provide for the optimum yield in the Town’s portfolio, the Town’s procedures shall be designed to encourage competitive bidding on transactions from an approved list of broker/dealers.

The Town may engage the services of an external investment advisor to assist in the management of the Town’s investment portfolio in a manner consistent with this investment policy. If the Town hires an investment adviser to provide investment management services, the adviser is authorized to transact with its direct dealer relationships on behalf of the Town.

Approved investment adviser firms must provide their services to the Town on a fiduciary capacity and be registered with the Securities and Exchange Commission (SEC) under the Investment Advisor’s Act of 1940. The advisor shall have more than five years’ experience in managing public funds, and shall have at minimum $1 billion under management.

The City Manager, or the Town’s investment advisor, shall maintain a list of authorized broker/dealers and financial institutions that are approved for investment purposes. This list will be developed after a comprehensive credit and capitalization analysis indicates the firm is adequately financed to conduct business with public entities. It shall be the policy of the Town to purchase securities only from those authorized institutions or firms.

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8.0 Safekeeping and Custody
To protect against potential fraud and embezzlement, or losses caused by a collapse of an individual securities dealer all security transactionsentered into by the Town of Los Altos Hills shall be conducted on a delivery-versus-payment (DVP) basis. Securities will be held by a third- party custodian, in the Town of Los Altos Hills’ name and control, designated by the City Manager or her/his designee and evidenced by safekeeping receipts.

9.0 Collateralization
Collateralization will be required on certificates of deposit as specified under Government Code Section 63630 et seq in order to anticipate market changes and provide a level of security for all funds. All time deposits must be collateralized in accordance with California Government Code section 53651.

The Town of Los Altos Hills chooses to limit collateral to the following:

Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the Town of Los Altos Hills and retained.

The right of collateral substitution is granted.

10.0 Internal Control
The Town of Los Altos Hills is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town are protected from loss, theft or misuses. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by the City Manager and staff.

The City Manager or designee shall arrange for an annual audit by an external CPA firm in compliance with the requirements of state law and generally accepted accounting principles as pronounced by the Government Accounting Standards Board (GASB). As a part of the audit, investment transactions will be tested. The annual audit will be an integral part, but not the sole part of management’s program of monitoring internal controls.

The internal controls shall address the following points:
• Control of collusion
• Separation of transaction authority from accounting and recordkeeping • Custodial safekeeping
• Avoidance of physical delivery securities
• Clear delegation of authority to subordinate staff members • Written confirmation of transactions for investments and wire transfers

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• Development of a wire transfer agreement with the lead bank and third-party custodian

11.0 Ethics and Conflicts of Interest
Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. These officers and employees involved in the investment process shall disclose to the City Manager any material financial interest in financial institutions that conduct business with this jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the Town of Los Altos Hills, particularly with regard to the time of purchases and sales. Employees and investment officials shall refrain from undertaking personal investment transactions with the same individual with whom business is conducted on behalf of the Town of Los Altos Hills.

12.0 Diversification
The Town of Los Altos Hills will diversify its investments by security type and institution.

Limits are provided for in Section 6.0. With the exception of U.S. Treasury and Federal Agency securities, municipal bonds, supranational bonds, and authorized pools such as CAMP or LAIF, no more than 5% of the Town of Los Altos Hills’ total investment portfolio will be invested in a single issuer.

13.0 Maximum Maturities
To the extent possible, the Town of Los Altos Hills will attempt to match its investments with anticipated cash flow requirements. The Town of Los Altos Hills will not directly invest in securities maturing more than five (5) years from the settlement date of purchase unless City Council has provided approval for a specific purpose at least three (3) months before the investment is made. The calculation of an investments remaining maturity/term is to be measured from the settlement date to final maturity.

Debt reserve funds may be invested in securities exceeding five (5) years if the maturities of such investments are made to coincide as nearly as practicable with the expected use of the funds.

The Town of Los Altos Hills will retain operating reserves as adopted by the City Council.

The amount of active deposits and inactive investments with a maturity of one year or less shall always be equal to greater than any draw on these reserves required by the annual operating budget.

Securities may be sold prior to maturity to accommodate the Town’s cash flow requirements, to reposition the portfolio to perform well in the current market, or to take advantage of market opportunities to increase the Town’s rate of return.

14.0 Performance Standards
The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with the Town’s investment risk constraints and the cash flow needs.

Commented [WLE2]: Senate Bill 1489, effective January 1, 2023

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14.1 Market Yield (Benchmark): Suitability should be the standard for evaluating the success of the Town’s investment portfolio. Given this strategy and the active investment management utilized by the Town, the basis used to determine whether market yields are adequate shall be the ICE BofAML 1-5 year U.S. Treasury Index.

15.0 Reporting
The City Manager is charged with the responsibility of including a market report on investment activity and returns in the Town of Los Altos Hills’ Cash and Investment Report. The Report will be in compliance with California Government Code Section 53607 and will include:
• The monthly report shall include an accounting of all receipts, disbursements, and fund balances.
• The quarterly reports shall include the book and market value of the cash investment, the classification of the investment, the name of the institution or entity, the rate of interest, and the maturity dates for all securities.
• The quarterly report will include a statement of compliance of the portfolio with the investment policy or an explanation as to why the portfolio is not in compliance per Government Code 53646(b)(2).
• The quarterly report will include a statement on availability of funds to meet its obligations within the next six months per Government Code 53646(b)(3).

As a good reporting practice, the Report will be submitted on a quarterly basis and provided to the Council within 45 days following the end of the month.

16.0 Investment Policy Adoption
The Town of Los Altos Hill’s’ investment policy shall be adopted by the City Council.

The policy shall be reviewed annually by the Finance and Investment Committee and any modifications made thereto must be approved by the City Council.

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GLOSSARY
Bankers’ Acceptances
Short-term credit arrangements that enable businesses to obtain funds to finance commercial transactions. They are time drafts drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. By its acceptance, the bank becomes primarily liable for the payment of the draft at maturity. An acceptance is a high-grade negotiable instrument.

Benchmark
A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk the average duration of the portfolio’s investments.

Broker
Someone who brings buyers and sellerstogether and is compensated for her/hisservice.

California Asset Management Program (CAMP)
CAMP is a joint powers authority which provides investment services to local governments through its investment pool. The pool is AAAm-rated by S&P Global’s, and provides sameday availability to funds up to 11:00AM Pacific. The pool strives to maintain stable asset value.

Certificates of Deposit

1. Negotiable Certificates of Deposit are large-denomination CDs. They are issued at face value and typically pay interest at maturity, if maturing in less than 12 months. CDs that mature beyond this range pay interest semi-annually.

Negotiable CDs are issued by U.S. banks (domestic CDs), U.S. branches of foreign banks (Yankee CDs), and thrifts. There is an active secondary market for negotiable domestic and Yankee CDs. However, the negotiable thrift CD secondary market is limited. Yields on CDs exceed those on U.S. treasuries and agencies of similar maturities. This higher yield compensates the investor for accepting the risk of reduced liquidity and the risk that the issuing bank might fail. State law does not require the collateralization of negotiable CDs.

2. Non-negotiable Certificates of Deposit are time deposits with financial institutions that earn interest at a specified rate for a specified term. Liquidation of the CD prior to maturity incurs a penalty. There is no secondary market for these instruments; therefore, they are not liquid. They are classified as public deposits, and financial institutions are required to collateralize them. Collateral may be waived for the portion of the deposits that are covered by FDIC insurance.

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Collateral
Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.

Collateralization
Process by which a borrower pledges securities, property or other deposits for the purpose of securing the repayment of a loan and/or security. Also refers to securities pledged by a bank to secure deposits of public moneys.

Dealer
Someone who acts as a principal in all transactions, including buying and selling from her/his own account.

Delivery v. payment
The preferred method of delivering securities, with an exchange of money for the securities.

Demand deposits
A deposit of monies which are payable by the bank upon demand of the depositor.

Derivative
Securities that are based on, or derived from, some underlying asset, reference date, or index.

Diversification
Dividing investment funds among a variety of securities offering independent returns.

Federal Depository Insurance Corporation (FDIC)
A federal agency that insures bank deposits, currently up to $250,000 per deposit.

Federal Home Loan Bank (FHLB)
A federal agency that provides credit and liquidity in the housing market. FHLB issues discount notes and semi-annual pay coupon securities.

Federal Home Loan Mortgage Corporation (FHLMC)
A federal agency that provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac,” issues discount notes, semi-annual pay coupon securities and mortgage-backed securities.

Federal National Mortgage Association (FNMA)
A federal agency that provides credit and liquidity in the housing market. FHLMC, also called “Fannie Mae,” issues discount notes, semi-annual pay coupon securities and mortgage-backed securities.

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Liquidity
An asset that can easily and rapidly be converted into cash without significant loss of value.

Local Agency Investment Fund (LAIF)
The LAIF was established by the State of California to enable treasurers to place funds in a pool for investments. There is a limitation of $50 million per agency subject to a maximum of fifteen total transactions per month. The Town uses this fund when market interest rates are declining as well as for short-term investments and liquidity. Town funds in LAIF are limited to $40 million.

Maturity
The date upon which the principal or stated value of an investment becomes due and payable.

Mortgage-Backed Security
Debt obligations that represent claims to the cash flows from pools of mortgage loans, most commonly on residential property.

NRSRO: This acronym stands for Nationally Recognized Statistical Rating Organization, which is a credit rating agency that issues credit ratings that the U.S. Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes. NRSROs include S&P Global, Moody's, and Fitch ratings.

Portfolio
Combined holding of more than one stock, bond, commodity, cash equivalent or other asset. The purpose of a portfolio is to reduce risk by through diversification.

Repurchase Agreement
A form of collateralized loan involving the sale of a security with a simultaneous agreement by the seller to buy the same security back from the purchaser at an agreed-on price and future date. The party who sells the security at the inception of the repurchase agreement and buys it back at maturity is borrowing money from the other party, and the security sold and subsequently repurchased represents the collateral.

Safekeeping
Offers storage and protection of assets provided by an institution serving as an agent.

Supranational Bonds
A bond issued by a supranational agency such as the World Bank.

U.S. Treasury Bills
Commonly referred to as T-Bills, these are short-term marketable securities sold as obligations of the U.S. Government. They are offered in three-month, six-month and one year maturities. T-Bills do not accrue interest but are sold at a discount to pay face value at maturity.

U.S. Treasury Notes

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These are marketable, medium-term interest-bearing securities sold as obligations of the U.S. Government with original maturities of one to ten years. Interest is paid semiannually.

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U.S. Government Agency Issues
Issues which are unconditionally backed by the full faith and credit of the United States.

Yield
The rate of annual income return on an investment, expressed as a percentage. Income yield is obtained by dividing the current dollar income by the current market price for the security. Net yield or yield to maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond.

PFM Asset Management is a division of U.S. Bancorp Asset Management, Inc.

Investment observations based on Los Altos Hills Investment Policy Statement as of 11/26/2024.

Investment observations are for informational purposes only and are not intended to provide specific advice or any specific recommendations.

NOT FDIC INSURED : NO BANK GUARANTEE : MAY LOSE VALUE 1 of 2 January 3rd, 2025
Memorandum
To: Thomas Leung, Finance Director
Town of Los Altos Hills
From: Justin Resuello, Institutional Sales and Relationship Manager Michael Buck, Client Performance Reporting Analyst
PFM Asset Management, a division of U.S. Bank Asset Management RE: Los Altos Hills 2024 Investment Policy Review
PFM Asset Management has completed its review of Los Altos Hills (the “Town”) 2024 Investment Policy (the “Policy”). At this time, we are recommending Policy changes in response to amendments to California Government Code (the “Code”) that went into effect on January 1, 2022, 2023, and 2024, following the passage of Senate Bill 1489 (“SB 1489”) in September 2022, and Senate Bill 882, also known as the Local Government Omnibus Act of 2023. We have also made recommendations to expand permissible investment options for the City as well as some contextual updates. We have summarized the relevant Code changes and our Policy recommendations below and have attached a redlined version of the City’s Policy to illustrate our recommendations.

Recommendations
We are recommending a change to the Policy to address Statement No. 98 of the Governmental Accounting Standards Board, dated October 2021. This Statement establishes the term Annual Comprehensive Financial Report and its acronym ACFR. That new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. The requirements of this Statement are effective for fiscal years ending after December 15, 2021. Included with this memo is the GASB Statement No. 98, which provides additional information on the change.

Senate Bill 1489, also known as the Local Government Omnibus Act of 2022, made a number of changes to Code, including several that impact the investment of public funds and the reporting practices of public agencies. Changes made to Code section 53601, the section of Code that governs the investment of public funds, include language stating that an investment’s term or remaining maturity shall be measured from the settlement date to final maturity, and, that a security purchased in accordance with Code section 53601 shall not have a forward settlement date exceeding 45 days from the time of investment.

SB 1489 also modified Code section 53646 and its quarterly reporting requirements. Per Code, producing a quarterly report is optional for public agencies. However, should an agency choose to produce a quarterly report, certain requirements must be met. One of those requirements was to ITEM 5I Attachment 3
REVISED 2.13.25

2 produce the quarterly report within thirty (30) days following the end of the quarter. With SB 1489, that time has been extended to forty-five (45) days.

Previously, Code was silent on both items. To address these Code changes, we have made the following recommendations in the Investment Policy.
• In Policy section 13.0. Maximum Maturities, we recommend adding the new Code language regarding the calculation of forward settlement.
• We also recommend including language to Policy section 15.0 Reporting, to address the code change regarding the extension for the submission of quarterly reports.

SB 882 made several changes to Code, including one made to Code Section 53601(o). The bill clarified that mortgage-backed securities issued by federal agencies are exempt from the Code’s requirements described in Section 53601(o) for privately issued asset- and mortgage- backed securities. The Code update codifies the common understanding of how agency mortgage-backed securities are treated under Code. Although the Code change does not change what type of securities the Authority may purchase nor how the portfolio is managed, incorporating the Code change into the Policy will better align the Policy with the current Code language.
• In Policy section 8.0. Authorized and Suitable Investments, we recommend adding Asset and Mortgage-Backed Securities as an investment option.

Additionally, we have recommend adding non-pooled commercial paper with investments under $100,000,000 or above or equal to $100,000,000 in total investments and pooled funds to reflect code since both types of commercial paper investment types have different state limits based on total investment totals.

Please let us know if you have any questions and if you would like to schedule a call to discuss our review further. Thank you

ITEM 5J
TOWN OF LOS ALTOS HILLS February 20, 2025
Staff Report to the City Council
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A FIVE-YEAR AGREEMENT WITH FLOCK SAFETY FOR 31

AUTOMATIC LICENSE PLATE READER CAMERAS
FROM: Cody Einfalt, Deputy City Manager CE
APPROVED: Peter Pirnejad, City Manager PP
RECOMMENDATION: That the City Council should:

Adopt the attached resolution (Attachment 1) authorizing the City Manager to execute a five-year agreement with Flock Safety for 31 automatic license plate reader (ALPR) cameras throughout Town in the amount of $93,000 a year.

BACKGROUND:

On January 30, 2025, the City Council discussed the Town’s public safety strategy which included the supplemental ALPR camera services with Flock Safety (Attachment 2). Due to a price increase on the cameras, the City Council directed staff to reduce the number of ALPR cameras in Town from 40 to 31, and to negotiate a 5-year agreement with Flock Safety to lock in pricing. The proposed agreement can be seen in Attachment 3. The agreement runs until March 31, 2030.

ENVIRONMENTAL REVIEW:

This action does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the Guidelines for California Environmental Quality Act. 2024-25 CITY COUNCIL WORKPLAN:

Public Safety efforts to reduce the rate of residential burglaries in Town was identified on the City Council Work Plan. Adopting the resolution to continue the use of ALPR cameras in Town aligns with this goal.

FISCAL IMPACT:

By reducing the number of ALPR cameras in Town from 40 to 31, there will be an annual savings of $7,000 a year. However, the proposed agreement does lock in pricing for the next 5 years, so the Town will need to continue to budget for this service in the next 5 budget cycles.

ATTACHMENTS:

1. Proposed Resolution

2. January 30, 2025 Staff Report

3. Proposed 5 year agreement with Flock Safety

ITEM 5J, Attachment 1
RESOLUTION xx-25

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A FIVE-YEAR AGREEMENT WITH FLOCK SAFETY FOR 31 AUTOMATIC LICENSE PLATE

READER CAMERAS
WHEREAS, In April 2021, the Town entered into a 3-year contract with Flock Safety for the installation and maintenance of 40 ALPR cameras throughout Town; and WHEREAS, the contract is set to expire on March 31, 2025; and WHEREAS, Flock notified the Town that the cost of the cameras is increasing from $2,500 to $3,000 per unit; and
WHEREAS, Town staff worked with the Technology Committee to review the Town’s ALPR system and identified 9 cameras that can be removed from the system while still maintaining full coverage of all Los Altos Hills streets; and
WHEREAS, On January 30, 2025 the City Council directed staff to negotiate a 5-year agreement with Flock Safety for 31 ALPR cameras in Town, saving the Town $7,000 a year on the system from the reduction in the number of cameras.

NOW THEREFORE, the City Council of the Town of Los Altos Hills does hereby authorize the City Manager on behalf of the Town to execute the Agreement between the Town of Los Altos Hills and Flock Safety for the continued use of ALPR cameras in Town.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 20th day of February 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

BY: _______________________________
Kavita Tankha, Mayor
ATTEST:
______________________________
Arika Miller, City Clerk

ITEM 5J, Attachment 2
TOWN OF LOS ALTOS HILLS January 30, 2025
Staff Report to the City Council
SUBJECT: RECEIVE COUNCIL DIRECTION ON THE TOWN’S
SUPPLEMENTAL PUBLIC SAFETY SERVICES – SPECIFICALLY
THE AGREEMENTS WITH FLOCK SAFTEY’S ALPR SYSTEM AND

PALAMERICAN PRIVATE SECURITY PATROLS
FROM: Cody Einfalt, Deputy City Manager
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council should:

Provide staff direction on the ALPR system with Flock Safety and the Private Security Patrols with PalAmerican agreements.

Options for ALPR system:
- Decrease the number of cameras, or
- Keep the same number of cameras and appropriate additional funds to cover cost; or - Eliminate the service
Options for Private Security Patrols:
- Reduce the number of patrols taking place each day in Town; or - Keep the same number of patrols and appropriate additional funds to cover cost; or - Eliminate the service
Staff will return at the February City Council meeting with corresponding resolutions reflecting the Council motion that is passed this evening.

BACKGROUND:

In response to residential burglaries that have occurred in Town over the last several years, the Town enacted the following approach to supplement the base law enforcement services from the Santa Clara County Sheriff’s Office to help curb the rate of events:
- Allotted $200,000 for overtime hours through the Santa Clara County Sheriff for FY 24-

25. These hours can be used for patrol services or investigative services. Overtime hours are particularly targeted for holidays when residents may be traveling. - Installed 40 ALPR (Automatic License Plate Reader Cameras) throughout Town. - Hired private security to patrol Town streets 7 days a week to supplement Sheriff’s patrols. - Launched a public education campaign and supported the formation of additional Neighborhood Watch groups throughout Town.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
2 The combination of these supplemental services alongside the hours dedicated to the Town through the law enforcement agreement with the Santa Clara County Office of the Sheriff has contributed toward the reduction in residential burglaries in Town.

A note about the overtime hours from the Sheriff’s Office. The City Council approved $200,000 for overtime hours from the Sheriff’s Office as a part of the FY23-24 operating budget. It was determined that this was a better use of public funds than onboarding one additional full-time deputy at over $500,000. However, overtime hours are voluntarily filled by Deputies of the Sheriff’s Office, meaning only when officers are available and agree to work are these open overtime shifts filled in the Town.

It has been known for some time that the Sheriff's Office has been experiencing a drop in the number of officers they have on hand. Making this situation more difficult is the fact that the Sheriff’s Office was forced to require mandatory overtime hours for their Courts/Jail Division for several months at the beginning of the 2024 calendar year. This in-house overtime requirement took away any potential officers looking for more work in Los Altos Hills.

This shortage of officers accepting overtime in the hills can be seen January – April 2024:

For comparison, below is a chart showing overtime usage in 2023.

As shown above, the number of overtime hours received from the Sheriff decreased in 2024 as compared to 2023.

The number of residential burglaries for 2024 have fallen from 2022 and 2023 when the Town experienced a spike in activity. The number of occurrences of residential burglaries in 2024 are at levels last seen in 2018, and technically are at the lowest since 2016, as shown in clippings of charts below from the Sheriff’s Office monthly reports. All these reports are available in an archive on the Town’s website.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
3 In the last 5 years, the average burglary rate in Town was roughly 37 per year. Looking at the last 10 years, the average rate of residential burglary was 29 per year. Meaning, the rate of residential burglaries in Town for 2024 has currently decreased to below a 10-year average (2024 had 20 events)
Given this reduction, Town staff is recommending a discussion take place on two of the contracts within the Town’s public safety efforts -- the agreement with Flock for ALPRs and the private security contract with PalAmerican. Both agreements need contract extensions and altered terms, or termination, which would need Council direction to implement.

DISCUSSION:

ALPR Contract with Flock Safety
In April 2021, the Town entered into a contract with Flock Safety for the installation and maintenance of 40 ALPR cameras throughout Town. The initial term of the contract was 12 months with a renewal period of 24 months. The current term of the contract is set to expire March 31, 2025.

Recently, Town staff was notified that Flock Safety intends to increase the annual cost of the cameras at the next renewal date for the Town – April 1, 2025. Under the current contract, the cameras cost $2,500/camera (or $100,000 annually for 40 cameras), however Flock has raised the price per camera to $3,000/camera (or $120,000 annually for 40 cameras) should the Town renewal the agreement.

For the current budget cycle (FY24-25), staff only budgeted $100,000 for this contract.

Given this price change, Staff began working with the Technology Committee to review the Town’s ALPR system. At the December 11, 2024 Technology Committee meeting the Committee passed a motion to recommend reducing the Town’s ALPR system down by nine cameras, from 40 to 31 (Attachment 1).

The Committee’s rationale behind reducing the ALPR cameras was to keep cameras at all entrances to Town but remove cameras that are entirely in the interior. That way, every entrance is still covered (with some very slight exceptions) so that no vehicle can come into Town without passing an ALPR. There are nine cameras that fit this description.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
4 Below is a table of information compiled by the Santa Clara County Sheriff's Office indicated the number of times detectives have used the Town’s ALPR system in responding to incidents.

Los Altos
Hills
ALPR
Productivity
Stolen Vehicles
Located/Recovered
Stolen License
Plates
Located/Recovered
Suspects
Arrested
Wanted Vehicles
Located Warrants Served
2022 2 2 7 3 10
2023 3 3 3 1 0
2024 2 2 2 0 0
Since its installation in Town, the ALPR system has assisted the Sheriff’s Office twice in solving residential burglary cases post event.

Event #: 23-299-0134L – LAH ALPR camera used to identify a suspect vehicle that was used in a Los Altos Hills residential burglary. Two out of the three suspects were arrested and identified by Orinda Police Dept. while committing a residential burglary in their city several weeks later.

Event #: 24-164-0070L – LAH ALPR camera captured a stolen pickup truck that was used in a residential construction site burglary. The stolen truck was recovered; however, it was abandoned and returned to the rightful owner.

It is important to remember that the footage from the ALPRs needs to be researched as part of an open investigation and often results in additional detective hours necessary to review the footage.

Below is an overview of the hours used by the Sheriff’s Office for investigative services, much of which comes from the reviewing of footage from the Town’s ALPR system.

Fiscal Year 2023-24
Fiscal Year 2022-23
Fiscal Year 2021-22
The Sheriff’s Office dedicated a large portion of hours in 2021 and 2022 to the Town’s ALPR system given the time needed for the cameras to be integrated into the processes of the Sheriff’s

Staff Report to City Council
Public Safety Discussion
January 30, 2025
5 Office and the training that was needed on the platform. Investigated hours dedicated to the ALPR system have tapered off in 2023 and 2024, but remain higher than what detectives were billing prior to the introduction of the system into the Town pre 2021.

Should the City Council move forward with the Technology Committee’s recommendation of reducing the number of ALPR cameras by nine cameras, from 40 to 31 (Attachment 1), the annual price to the Town would reduce to $93,000 per year and no additional funds would need to be appropriated. Staff would recommend a three-year agreement to lock in pricing.

On the other hand, should the City Council renew the Town’s lease for all 40 current ALPR cameras, the new contract amount would be $120,000. Therefore, the council would need to appropriate an additional $20,000 this fiscal year. Based on that direction staff would incorporate the remaining portion of the contract into the next budget cycle (FY 2024-25).

Separately, staff is researching an option to allow residents to privately fund ALPR cameras in their neighborhoods and have those cameras managed by the Sheriff’s Office. It is unclear at this time how much oversight the Sheriff’s Office could provide for privately funded cameras; however, staff will report back on this effort when more is known.

Private Security Contract with PalAmerican
In April of 2023 the Town entered into an agreement with PalAmerican (previously known as Genesis Safety) for private security patrols of the Town’s streets. The Town started with 2 shifts per day for 7 days a week.

In response to the uptick in residential burglaries in September 2023, the Town increased the number of patrols from 2 shifts a day to 4 shifts a day for 7 days a week, including holidays. The City Council took actions to expand the service level and during the budget process appropriated the funding for the enhanced private security detail through the end of FY 23-24. Patrol services have remained at 4 shifts a day, 7 days a week since September 2023.

Current PalAmerican private security patrol schedule:
6:30am – 3:00pm (1 patrol officer)
12:00pm – 8:30pm (2 patrol officers)
3:00pm – 11:30pm (1 patrol officer)
Although the council approved both the enhanced scope and allocated the funding, Town staff recently become aware that the private security contract was not renewed. The Town has been operating past the term of the contract (expired June 31, 2024). Staff wanted to bring this to the Council attention as soon as we realized the error but considering the Council had authorized the current service level and adopted the budget in June, Town staff continued to honor the expired permit until we could agendize a more comprehensive conversation about public safety with the Council.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
6 Town staff has continued to pay the monthly invoices on the contract until the Council could discuss this agreement alongside the expiring ALPR contact. Acting on this contract independent of a larger discussion would limit the Council’s options.

It should be noted that if the Council decides to extend the PalAmerican agreement at the current rate (four, 8-hour patrol shifts a day), the following would be the amount billed to the Town:
224 hours per week x $54.00 per. hour = $12,096.00 /per week or $628,992 annually Holidays: ~7 days recognized = $6,048 Annually
Total Annually: $635,040
Currently the Town budgeted $550,000 for FY 24-25 for private security services, similar to the previous fiscal year (FY23-24). However, what was missed was the fact that in the beginning of FY 23-24, only two patrol shifts were occurring in Town for a couple months and holidays did not have extra patrols (as they do now).

At the conclusion of December, halfway through the FY24-25 budget cycle, the Town has spent roughly $317,000 on private security patrols. In reviewing the remaining public safety budget at this halfway point (which includes funding for the base services form the Sheriff and all the supplemental public safety services), staff anticipates needing approximately $65,000 of additional funds to maintain 4 private security patrol shifts through June 30, 2024. If the council were to choose to continue this level of service it would require we accommodate approximately $635,040 into next year’s budget (FY 2025-26), or an increase of $85,040 over the previous year’s budget for private security patrols with PalAmerican.

An option the Council can consider is reducing the number of shifts per day by 1 officer during the overlap period of 12:00pm – 8:30pm. This would result in the following schedule:
6:30am – 3:00pm (1 patrol officer)
12:00pm – 8:30pm (1 patrol officers)
3:00pm – 11:30pm (1 patrol officer)
Reducing the patrols by one officer would reduce the contract by roughly $160,000 annually.

Making this reduction would not require any additional funds to be appropriated in FY24/25, keeping the contract in budget.

Below is a table of the number of times a PalAmerican patrol officer called the Santa Clara County Sheriff for suspicious sights in Town. As a reminder, the patrol officers with PalAmerican are nonconfrontational, their patrol orders are to only be another set of eyes in the Town and to call law enforcement should they see anything suspicious.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
7 Number of Police Contacts Per Month – Contact began April 2023 Jan Feb March April May June July Aug Sept Oct Nov Dec
2023 2 2 3 1 0 0 1 0 2
2024 2 0 1 1 0 1 0 1 0 1 1 0
As shown in the table, the number of times PalAmerican officers has contacted the Sheriff’s Office each month has decreased since the start of the contract. This may be an indicator that suspicious activity in the Town has dropped since 2023.

Another indication of crime decreasing in Town can be seen in the number of calls for service being received by the Sheriff’s Office. Below is a table showing the past three years. The number of calls have steadily decreased
Call Count
Totals 2022 2023 2024
Los Altos Hills 6101 5272 3496
Regional crime trends, specifically residential burglary rates, are also somewhat decreasing for the other two contract cities of Cupertino and Saratoga, which are serviced by the Santa Clara County Sheriff.

Residential
Burglary Totals
2022 2023 2024
Cupertino 85 68 78
Los Altos Hills 51 60 20
Saratoga 75 56 46
Given this information, staff would recommend a one-year renewal agreement with PalAmerican so that the Town can review this contract on an annual basis.

Neighborhood Watch
For Council information, the Neighborhood Watch program continues to grow in Town. At the end of 2023, the Town had 17 active Neighborhood Watch zones and by the end of 2024 that number has grown to 21 active zones. Staff is current working with two additional zones to get them assembled for an orientation with the Santa Clara County Sheriff's Office.

Funding to support the Neighborhood Watch program also continues. Roughly $10,000 is budgeted every year to pay for signs, gatherings, and advertisements of the program. Many residents take advantage of this funding and participation in the events has steadily increased over the year.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
8 ENVIRONMENTAL REVIEW:

This action does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the Guidelines for California Environmental Quality Act. 2024-25 CITY COUNCIL WORKPLAN:

Public Safety efforts to reduce the rate of residential burglaries in Town was identified on the City Council Work Plan. Discussion public safety options will continue the Town’s efforts to hear from residents on how to spend the Town’s public safety funds.

FISCAL IMPACT:

Both the ALPR contract and Private Security Contract have fiscal impacts on the Town budget.

The Town can either decrease services to stay within budget, or appropriate additional funds to maintain the current level of service.

Should the Council decide to maintain the current level of service for both the ALPR contract with Flock and contract with PalAmerican, an appropriation of $85,000 would be needed from the unreserved general fund for FY 2024-25 ($20,000 for ALPRs and $65,000 for private security).

Below is a rough overview of the Town’s current public safety expenses for the fiscal year under that scenario:

Base services from Sheriff (Attachment 2): $2,458,826
Additional Overtime for the Sheriff: $200,000
PalAmerican Patrols (at 4 shifts per day): $635,040
ALPR cameras (at 40 cameras): $120,000
Neighborhood Watch Expenses: $10,000
Total: $3,429,866
Given the Town’s budget this fiscal year cycle, services may need to be reduced or reprioritized in other areas to accommodate any increase in public safety expenses.

ATTACHMENTS:

1. December 11, 2024 - Technology Committee Meeting Minutes

2. FY2024-25 Proposed Costs from the Santa Clara County Sheriff

Flock Safety + CA - City of Los Altos
Hills
______________
Flock Group Inc.
1170 Howell Mill Rd, Suite 210
Atlanta, GA 30318
______________
MAIN CONTACT:

Sam Meyer
[email protected]
4082348497

EXHIBIT A

ORDER FORM
Customer: CA - City of Los Altos Hills Initial Term: 60 Months Legal Entity Name: CA - City of Los Altos Hills Renewal Term: 12 Months Accounts Payable Email: Payment Terms: Net 30
Address: 26379 Fremont Road Los Altos, California 94022 Billing Frequency: Annual Retention Period: 30 Days
Hardware and Software Products
Annual recurring amounts over subscription term
Item Cost Quantity Total
Flock Safety Platform $93,000.00
Flock Safety Flock OS
FlockOS ™ - Included 1 Included
FlockOS ™ - Essentials Included 1 Included
Flock Safety LPR Products
Flock Safety LPR, fka Falcon Included 31 Included
Professional Services and One Time Purchases
Item Cost Quantity Total
One Time Fees
Subtotal Year 1: $93,000.00
Annual Recurring Subtotal: $93,000.00
Estimated Tax: $0.00
Contract Total: $465,000.00
The Term for Flock Hardware shall commence upon first installation and validation, except that the Term for any Flock Hardware that requires selfinstallation shall commence upon execution of the Agreement. In the event a Customer purchases more than one type of Flock Hardware, the earliest Term start date shall control. In the event a Customer purchases software only, the Term shall commence upon execution of the Agreement.

Taxes shown above are provided as an estimate. Actual taxes are the responsibility of the Customer. This Agreement will automatically renew for successive renewal terms of the greater of one year or the length set forth on the Order Form (each, a “Renewal Term”) unless either Party gives the other Party notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

Billing Schedule

Billing Schedule Amount (USD)
Year 1
At Contract Signing $93,000.00
Annual Recurring after Year 1 $93,000.00
Contract Total $465,000.00
*Tax not included

Product and Services Description
Flock Safety Platform Items Product Description
Flock Safety LPR, fka Falcon
Law enforcement grade infrastructure-free (solar power + LTE) license plate recognition camera with Vehicle Fingerprint ™ technology (proprietary machine learning software) and real-time alerts for unlimited users.

FlockOS ™ -
An integrated public safety platform that detects, centralizes and decodes actionable evidence to increase safety, improve efficiency, and connect the community.

FlockOS ™ - Essentials
An integrated public safety platform that detects, centralizes and decodes actionable evidence to increase safety, improve efficiency, and connect the community.

By executing this Order Form, Customer represents and warrants that it has read and agrees to all of the terms and conditions contained in the Master Services Agreement attached.

The Parties have executed this Agreement as of the dates set forth below.

FLOCK GROUP, INC. Customer: CA - City of Los Altos Hills By:
\FSSignature2\
By:
\FSSignature1\
Name:
\FSFullname2\
Name:
\FSFullname1\
Title:
\FSTitle2\
Title:
\FSTitle1\
Date:
\FSDateSigned2\
Date:
\FSDateSigned1\
PO Number:

ITEM 5K
TOWN OF LOS ALTOS HILLS February 20, 2025
Staff Report to the City Council
SUBJECT: RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE

AN AGREEMENT WITH PALAMERICAN PRIVATE SECURITY FOR
SECURITY PATROLS IN FY2024-25
FROM: Cody Einfalt, Deputy City Manager CE
APPROVED: Peter Pirnejad, City Manager PP
RECOMMENDATION: That the City Council should:

Adopt the attached resolution (Attachment 1) authorizing the City Manager to execute an agreement with PalAmerican Private Security for patrol services in FY 2024-25.

BACKGROUND:

On January 30, 2025, the City Council discussed the Town’s public safety strategy which included the supplemental private security services with PalAmerican (Attachment 2). Due to a reduction in crime, the City Council directed staff to reduce the number of shifts per day from 4 patrol shifts in Town to 3 patrol shifts. The proposed agreement can be seen in Attachment 3.

Staff will continually monitor crime trends and use the 3 patrol shifts when they are needed most.

ENVIRONMENTAL REVIEW:

This action does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the Guidelines for California Environmental Quality Act. 2024-25 CITY COUNCIL WORKPLAN:

Public Safety efforts to reduce the rate of residential burglaries in Town was identified on the City Council Work Plan. Adopting the resolution to continue the presence of private security in Town aligns with this goal.

FISCAL IMPACT:

For FY 2024-25, the Town budgeted $550,000 for private security patrol services. By reducing the number of patrol shifts in Town each day from 4 to 3 shifts, no additional appropriation is needed in the current budget.

ATTACHMENTS:

1. Proposed Resolution

2. January 30, 2025 Staff Report

3. Proposed agreement with PalAmerican

ITEM 5K, Attachment 1
RESOLUTION xx-25

RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN

AGREEMENT WITH PALAMERICAN PRIVATE SECURITY FOR PATROL
SERVICES IN FY 2024-25
WHEREAS, In April 2023, the Town entered into a contract with PalAmerican Private Security (previously known as Genesis Safety) for patrol services in Town; and WHEREAS, the contract began with 2 shifts per day, 7 days a week and was then increased in September 2023 to 4 shifts per day, 7 days a week; and
WHEREAS, the Town budgeted $550,000 for private security patrol services in FY2024-25; and WHEREAS, in response to a decrease of crime in Town, on January 30, 2025 the City Council directed staff to reduce the number of shifts per day from 4 shifts to 3 shifts.

NOW THEREFORE, the City Council of the Town of Los Altos Hills does hereby authorize the City Manager on behalf of the Town to execute the Agreement between the Town of Los Altos Hills and PalAmerican Private Security for the continued service of private security patrols in Town for FY 2024-25.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 20th day of February 2025 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

BY: _______________________________
Kavita Tankha, Mayor
ATTEST:
______________________________
Arika Miller, City Clerk

Attachment 2
TOWN OF LOS ALTOS HILLS January 30, 2025
Staff Report to the City Council
SUBJECT: RECEIVE COUNCIL DIRECTION ON THE TOWN’S
SUPPLEMENTAL PUBLIC SAFETY SERVICES – SPECIFICALLY
THE AGREEMENTS WITH FLOCK SAFTEY’S ALPR SYSTEM AND

PALAMERICAN PRIVATE SECURITY PATROLS
FROM: Cody Einfalt, Deputy City Manager
APPROVED: Peter Pirnejad, City Manager
RECOMMENDATION: That the City Council should:

Provide staff direction on the ALPR system with Flock Safety and the Private Security Patrols with PalAmerican agreements.

Options for ALPR system:
- Decrease the number of cameras, or
- Keep the same number of cameras and appropriate additional funds to cover cost; or - Eliminate the service
Options for Private Security Patrols:
- Reduce the number of patrols taking place each day in Town; or - Keep the same number of patrols and appropriate additional funds to cover cost; or - Eliminate the service
Staff will return at the February City Council meeting with corresponding resolutions reflecting the Council motion that is passed this evening.

BACKGROUND:

In response to residential burglaries that have occurred in Town over the last several years, the Town enacted the following approach to supplement the base law enforcement services from the Santa Clara County Sheriff’s Office to help curb the rate of events:
- Allotted $200,000 for overtime hours through the Santa Clara County Sheriff for FY 24-

25. These hours can be used for patrol services or investigative services. Overtime hours are particularly targeted for holidays when residents may be traveling. - Installed 40 ALPR (Automatic License Plate Reader Cameras) throughout Town. - Hired private security to patrol Town streets 7 days a week to supplement Sheriff’s patrols. - Launched a public education campaign and supported the formation of additional Neighborhood Watch groups throughout Town.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
2 The combination of these supplemental services alongside the hours dedicated to the Town through the law enforcement agreement with the Santa Clara County Office of the Sheriff has contributed toward the reduction in residential burglaries in Town.

A note about the overtime hours from the Sheriff’s Office. The City Council approved $200,000 for overtime hours from the Sheriff’s Office as a part of the FY23-24 operating budget. It was determined that this was a better use of public funds than onboarding one additional full-time deputy at over $500,000. However, overtime hours are voluntarily filled by Deputies of the Sheriff’s Office, meaning only when officers are available and agree to work are these open overtime shifts filled in the Town.

It has been known for some time that the Sheriff's Office has been experiencing a drop in the number of officers they have on hand. Making this situation more difficult is the fact that the Sheriff’s Office was forced to require mandatory overtime hours for their Courts/Jail Division for several months at the beginning of the 2024 calendar year. This in-house overtime requirement took away any potential officers looking for more work in Los Altos Hills.

This shortage of officers accepting overtime in the hills can be seen January – April 2024:

For comparison, below is a chart showing overtime usage in 2023.

As shown above, the number of overtime hours received from the Sheriff decreased in 2024 as compared to 2023.

The number of residential burglaries for 2024 have fallen from 2022 and 2023 when the Town experienced a spike in activity. The number of occurrences of residential burglaries in 2024 are at levels last seen in 2018, and technically are at the lowest since 2016, as shown in clippings of charts below from the Sheriff’s Office monthly reports. All these reports are available in an archive on the Town’s website.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
3 In the last 5 years, the average burglary rate in Town was roughly 37 per year. Looking at the last 10 years, the average rate of residential burglary was 29 per year. Meaning, the rate of residential burglaries in Town for 2024 has currently decreased to below a 10-year average (2024 had 20 events)
Given this reduction, Town staff is recommending a discussion take place on two of the contracts within the Town’s public safety efforts -- the agreement with Flock for ALPRs and the private security contract with PalAmerican. Both agreements need contract extensions and altered terms, or termination, which would need Council direction to implement.

DISCUSSION:

ALPR Contract with Flock Safety
In April 2021, the Town entered into a contract with Flock Safety for the installation and maintenance of 40 ALPR cameras throughout Town. The initial term of the contract was 12 months with a renewal period of 24 months. The current term of the contract is set to expire March 31, 2025.

Recently, Town staff was notified that Flock Safety intends to increase the annual cost of the cameras at the next renewal date for the Town – April 1, 2025. Under the current contract, the cameras cost $2,500/camera (or $100,000 annually for 40 cameras), however Flock has raised the price per camera to $3,000/camera (or $120,000 annually for 40 cameras) should the Town renewal the agreement.

For the current budget cycle (FY24-25), staff only budgeted $100,000 for this contract.

Given this price change, Staff began working with the Technology Committee to review the Town’s ALPR system. At the December 11, 2024 Technology Committee meeting the Committee passed a motion to recommend reducing the Town’s ALPR system down by nine cameras, from 40 to 31 (Attachment 1).

The Committee’s rationale behind reducing the ALPR cameras was to keep cameras at all entrances to Town but remove cameras that are entirely in the interior. That way, every entrance is still covered (with some very slight exceptions) so that no vehicle can come into Town without passing an ALPR. There are nine cameras that fit this description.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
4 Below is a table of information compiled by the Santa Clara County Sheriff's Office indicated the number of times detectives have used the Town’s ALPR system in responding to incidents.

Los Altos
Hills
ALPR
Productivity
Stolen Vehicles
Located/Recovered
Stolen License
Plates
Located/Recovered
Suspects
Arrested
Wanted Vehicles
Located Warrants Served
2022 2 2 7 3 10
2023 3 3 3 1 0
2024 2 2 2 0 0
Since its installation in Town, the ALPR system has assisted the Sheriff’s Office twice in solving residential burglary cases post event.

Event #: 23-299-0134L – LAH ALPR camera used to identify a suspect vehicle that was used in a Los Altos Hills residential burglary. Two out of the three suspects were arrested and identified by Orinda Police Dept. while committing a residential burglary in their city several weeks later.

Event #: 24-164-0070L – LAH ALPR camera captured a stolen pickup truck that was used in a residential construction site burglary. The stolen truck was recovered; however, it was abandoned and returned to the rightful owner.

It is important to remember that the footage from the ALPRs needs to be researched as part of an open investigation and often results in additional detective hours necessary to review the footage.

Below is an overview of the hours used by the Sheriff’s Office for investigative services, much of which comes from the reviewing of footage from the Town’s ALPR system.

Fiscal Year 2023-24
Fiscal Year 2022-23
Fiscal Year 2021-22
The Sheriff’s Office dedicated a large portion of hours in 2021 and 2022 to the Town’s ALPR system given the time needed for the cameras to be integrated into the processes of the Sheriff’s

Staff Report to City Council
Public Safety Discussion
January 30, 2025
5 Office and the training that was needed on the platform. Investigated hours dedicated to the ALPR system have tapered off in 2023 and 2024, but remain higher than what detectives were billing prior to the introduction of the system into the Town pre 2021.

Should the City Council move forward with the Technology Committee’s recommendation of reducing the number of ALPR cameras by nine cameras, from 40 to 31 (Attachment 1), the annual price to the Town would reduce to $93,000 per year and no additional funds would need to be appropriated. Staff would recommend a three-year agreement to lock in pricing.

On the other hand, should the City Council renew the Town’s lease for all 40 current ALPR cameras, the new contract amount would be $120,000. Therefore, the council would need to appropriate an additional $20,000 this fiscal year. Based on that direction staff would incorporate the remaining portion of the contract into the next budget cycle (FY 2024-25).

Separately, staff is researching an option to allow residents to privately fund ALPR cameras in their neighborhoods and have those cameras managed by the Sheriff’s Office. It is unclear at this time how much oversight the Sheriff’s Office could provide for privately funded cameras; however, staff will report back on this effort when more is known.

Private Security Contract with PalAmerican
In April of 2023 the Town entered into an agreement with PalAmerican (previously known as Genesis Safety) for private security patrols of the Town’s streets. The Town started with 2 shifts per day for 7 days a week.

In response to the uptick in residential burglaries in September 2023, the Town increased the number of patrols from 2 shifts a day to 4 shifts a day for 7 days a week, including holidays. The City Council took actions to expand the service level and during the budget process appropriated the funding for the enhanced private security detail through the end of FY 23-24. Patrol services have remained at 4 shifts a day, 7 days a week since September 2023.

Current PalAmerican private security patrol schedule:
6:30am – 3:00pm (1 patrol officer)
12:00pm – 8:30pm (2 patrol officers)
3:00pm – 11:30pm (1 patrol officer)
Although the council approved both the enhanced scope and allocated the funding, Town staff recently become aware that the private security contract was not renewed. The Town has been operating past the term of the contract (expired June 31, 2024). Staff wanted to bring this to the Council attention as soon as we realized the error but considering the Council had authorized the current service level and adopted the budget in June, Town staff continued to honor the expired permit until we could agendize a more comprehensive conversation about public safety with the Council.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
6 Town staff has continued to pay the monthly invoices on the contract until the Council could discuss this agreement alongside the expiring ALPR contact. Acting on this contract independent of a larger discussion would limit the Council’s options.

It should be noted that if the Council decides to extend the PalAmerican agreement at the current rate (four, 8-hour patrol shifts a day), the following would be the amount billed to the Town:
224 hours per week x $54.00 per. hour = $12,096.00 /per week or $628,992 annually Holidays: ~7 days recognized = $6,048 Annually
Total Annually: $635,040
Currently the Town budgeted $550,000 for FY 24-25 for private security services, similar to the previous fiscal year (FY23-24). However, what was missed was the fact that in the beginning of FY 23-24, only two patrol shifts were occurring in Town for a couple months and holidays did not have extra patrols (as they do now).

At the conclusion of December, halfway through the FY24-25 budget cycle, the Town has spent roughly $317,000 on private security patrols. In reviewing the remaining public safety budget at this halfway point (which includes funding for the base services form the Sheriff and all the supplemental public safety services), staff anticipates needing approximately $65,000 of additional funds to maintain 4 private security patrol shifts through June 30, 2024. If the council were to choose to continue this level of service it would require we accommodate approximately $635,040 into next year’s budget (FY 2025-26), or an increase of $85,040 over the previous year’s budget for private security patrols with PalAmerican.

An option the Council can consider is reducing the number of shifts per day by 1 officer during the overlap period of 12:00pm – 8:30pm. This would result in the following schedule:
6:30am – 3:00pm (1 patrol officer)
12:00pm – 8:30pm (1 patrol officers)
3:00pm – 11:30pm (1 patrol officer)
Reducing the patrols by one officer would reduce the contract by roughly $160,000 annually.

Making this reduction would not require any additional funds to be appropriated in FY24/25, keeping the contract in budget.

Below is a table of the number of times a PalAmerican patrol officer called the Santa Clara County Sheriff for suspicious sights in Town. As a reminder, the patrol officers with PalAmerican are nonconfrontational, their patrol orders are to only be another set of eyes in the Town and to call law enforcement should they see anything suspicious.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
7 Number of Police Contacts Per Month – Contact began April 2023 Jan Feb March April May June July Aug Sept Oct Nov Dec
2023 2 2 3 1 0 0 1 0 2
2024 2 0 1 1 0 1 0 1 0 1 1 0
As shown in the table, the number of times PalAmerican officers has contacted the Sheriff’s Office each month has decreased since the start of the contract. This may be an indicator that suspicious activity in the Town has dropped since 2023.

Another indication of crime decreasing in Town can be seen in the number of calls for service being received by the Sheriff’s Office. Below is a table showing the past three years. The number of calls have steadily decreased
Call Count
Totals 2022 2023 2024
Los Altos Hills 6101 5272 3496
Regional crime trends, specifically residential burglary rates, are also somewhat decreasing for the other two contract cities of Cupertino and Saratoga, which are serviced by the Santa Clara County Sheriff.

Residential
Burglary Totals
2022 2023 2024
Cupertino 85 68 78
Los Altos Hills 51 60 20
Saratoga 75 56 46
Given this information, staff would recommend a one-year renewal agreement with PalAmerican so that the Town can review this contract on an annual basis.

Neighborhood Watch
For Council information, the Neighborhood Watch program continues to grow in Town. At the end of 2023, the Town had 17 active Neighborhood Watch zones and by the end of 2024 that number has grown to 21 active zones. Staff is current working with two additional zones to get them assembled for an orientation with the Santa Clara County Sheriff's Office.

Funding to support the Neighborhood Watch program also continues. Roughly $10,000 is budgeted every year to pay for signs, gatherings, and advertisements of the program. Many residents take advantage of this funding and participation in the events has steadily increased over the year.

Staff Report to City Council
Public Safety Discussion
January 30, 2025
8 ENVIRONMENTAL REVIEW:

This action does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the Guidelines for California Environmental Quality Act. 2024-25 CITY COUNCIL WORKPLAN:

Public Safety efforts to reduce the rate of residential burglaries in Town was identified on the City Council Work Plan. Discussion public safety options will continue the Town’s efforts to hear from residents on how to spend the Town’s public safety funds.

FISCAL IMPACT:

Both the ALPR contract and Private Security Contract have fiscal impacts on the Town budget.

The Town can either decrease services to stay within budget, or appropriate additional funds to maintain the current level of service.

Should the Council decide to maintain the current level of service for both the ALPR contract with Flock and contract with PalAmerican, an appropriation of $85,000 would be needed from the unreserved general fund for FY 2024-25 ($20,000 for ALPRs and $65,000 for private security).

Below is a rough overview of the Town’s current public safety expenses for the fiscal year under that scenario:

Base services from Sheriff (Attachment 2): $2,458,826
Additional Overtime for the Sheriff: $200,000
PalAmerican Patrols (at 4 shifts per day): $635,040
ALPR cameras (at 40 cameras): $120,000
Neighborhood Watch Expenses: $10,000
Total: $3,429,866
Given the Town’s budget this fiscal year cycle, services may need to be reduced or reprioritized in other areas to accommodate any increase in public safety expenses.

ATTACHMENTS:

1. December 11, 2024 - Technology Committee Meeting Minutes

2. FY2024-25 Proposed Costs from the Santa Clara County Sheriff

Town of Los Altos Hills Page 1 of 5
Short form
Updated 4/26/22

AGREEMENT
THIS AGREEMENT is made and entered into on the 30 day of January, 2025 by and between the TOWN OF LOS ALTOS HILLS (hereinafter referred to as "TOWN") and Pal American Security (hereinafter referred to as "CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows:

1. CONTRACTOR. Shall provide or furnish the following specified services and/or materials:

Conduct regular patrols of public areas, deterring criminal activity and maintaining a visible security presence.

A full description of the Scope of Work can be found in Exhibit A

2. EXHIBITS. The following attached exhibits are hereby incorporated into and made a part of this Agreement:

Proposal from CONTRACTOR dated 3/25/2024

3. TERMS. The services and/or materials furnished under this Agreement shall commence July 1, 2024 and shall be completed by June 30, 2025, unless terminated pursuant to Section 5(f).

4. COMPENSATION. For the full performance of this Agreement:
a. TOWN shall pay CONTRACTOR an amount not to exceed five hundred and fifty thousand dollars and zero cents ($550,000.00) within thirty (30) days following receipt of invoice and completion/delivery of services/goods as detailed in Sections 1, 2, and 3 of this Agreement and only upon satisfactory delivery/completion of goods/services in a manner consistent with professional/industry standards for the area in which CONTRACTOR operates. TOWN is not responsible for paying for any work done by CONTRACTOR or any subcontractor above and beyond the not to exceed amount.
b. Town shall not reimburse for any of CONTRACTOR's costs or expenses to deliver any services/goods. Town shall not be responsible for any interest or late charges on any payments from Town to CONTRACTOR.
c. CONTRACTOR is responsible for monitoring its own forces/employees/agents/ subcontractors to ensure delivery of goods/services within the terms of this Agreement. TOWN will not accept or compensate CONTRACTOR for incomplete goods/services.

Town of Los Altos Hills Page 2 of 5
Short form
Updated 4/26/22

5. GENERAL TERMS AND CONDITIONS.
a. HOLD HARMLESS. CONTRACTOR agrees to indemnify, defend and hold harmless the TOWN, its officers, agents and employees from any and all demands, claims or liability of personal injury (including death) and property damage of any nature, caused by or arising out of the performance of CONTRACTOR under this Agreement. With regard to CONTRACTOR’S work product, CONTRACTOR agrees to indemnify, defend and hold harmless the TOWN, its officers, agents and employees from any and all demands, claims or liability of any nature to the extent caused by the negligent performance of CONTRACTOR under this Agreement. b. INSURANCE. CONTRACTOR shall file with the TOWN a certificate of insurance before commencing any services under this Agreement as follows:
i. WORKERS COMPENSATION INSURANCE: Minimum statutory limits. ii. COMMERCIAL GENERAL LIABILITY AND PROPERTY DAMAGE
INSURANCE: General Liability and Property Damage Combined. $1,000,000.00 per occurrence including comprehensive form, personal injury, broad form personal damage, contractual and
premises/operation, all on an occurrence basis. If an aggregate limit exists, it shall apply separately or be no less than two (2) times the occurrence limit.
iii. AUTOMOBILE INSURANCE: $1,000,000.00 per occurrence. iv. ERRORS AND OMISSIONS INSURANCE: $1,000,000.00 aggregate. v. NOTICE OF CANCELLATION: The City requires 30 days written notice of cancellation. Additionally, the notice statement on the certificate should not include the wording "endeavor to" or "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives.”
vi. CERTIFICATE OF INSURANCE: Prior to commencement of services, evidence of insurance coverage must be shown by a properly executed certificate of insurance and it shall name "The Town of Los Altos Hills, its elective and appointed officers, employees, and volunteers" as additional insureds.
vii. To prevent delay and ensure compliance with this Agreement, the insurance certificates and endorsements must be submitted to:

Town of Los Altos Hills Page 3 of 5
Short form
Updated 4/26/22
Town of Los Altos Hills
26379 Fremont Road
Los Altos Hills, CA 94022
c. NON-DISCRIMINATION. No discrimination shall be made in the employment of persons under this Agreement because of the race, color, national origin, age, ancestry, religion or sex of such person.
d. INTEREST OF CONTRACTOR. It is understood and agreed that this Agreement is not a contract of employment and does not create an employer-employee relationship between the TOWN and CONTRACTOR. At all times CONTRACTOR shall be an independent contractor and CONTRACTOR is not authorized to bind the TOWN to any contracts or other obligations without the express written consent of the TOWN. In executing this Agreement, CONTRACTOR certifies that no one who has or will have any financial interest under this Agreement is an officer or employee of TOWN. e. CHANGES. This Agreement shall not be assigned or transferred without advance written consent of the TOWN. No changes or variations of any kind are authorized without the written consent of the City Manager. This Agreement may only be amended by a written instrument signed by both parties. f. TERMINATION. This Agreement may be terminated by TOWN upon seven (7) days written notice to CONTRACTOR. Monies owed for work satisfactorily completed shall be paid to CONTRACTOR within 14 days of termination. g. RECORDS. All reports, data, maps, models, charts, studies, surveys, calculations, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that are prepared or obtained pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the TOWN. CONTRACTOR hereby agrees to deliver those documents to the TOWN at any time upon demand of the TOWN. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the TOWN and are not necessarily suitable for any future or other use. Failure by CONTRACTOR to deliver these documents to the TOWN within a reasonable time period or as specified by the TOWN shall be a material breach of this Agreement. TOWN and CONTRACTOR agree that until final approval by TOWN, all data, plans, specifications, reports and other documents are preliminary drafts not kept by the TOWN in the ordinary course of business and will not be disclosed to third parties without prior written consent of both parties. All work products submitted to the TOWN pursuant to this Agreement shall be deemed a "work for hire.” Upon submission of any work for hire pursuant to this Agreement, and acceptance by the TOWN as complete, nonexclusive title to copyright of said work for hire shall transfer to the TOWN. The compensation recited in Section 4 shall be deemed to be sufficient consideration

UNIFORMED SECURITY SERVICES PROPOSAL
companyname]
PalAmerican Security
Making the World a Safer and Friendlier Place
Security Services

CONFIDENTIAL PROPOSAL
Copyright © 2023 PalAmerican Security Group Ltd.

All rights reserved

CONFIDENTIAL SECURITY PROPOSAL
2 3/25/24
To: Town Of Los Altos Hills
Client Rep:Cody Einfalt
Title: Assistant to the City Manager
Address: 26379 Fremont Road
Los Altos Hills, Ca. 94022
RE: Town of Los Altos Hills / PalAmerican Residential Patrol Services Dear Cody ,
On behalf of PalAmerican Security, I would like to extend our appreciation for the opportunity to submit a proposal for the requested security services for Town of Los Altos Hills. We are extremely proud of our comprehensive security guard programs in similar working environments that have been established around the state, as well as around the country. PalAmerican is eager to give Town of Los Altos Hills the same level of dedication we provide to all our clients locally and across the US.

PalAmerican is the provider of choice for office and commercial property security contracts. In addition to our uncompromising security guard expertise, other featured services include emergency management and threat assessment, security program assessment, and investigative services. Our numerous specialized management services complement our standard security service offerings and have been designed specifically for similar environments as Town of Los Altos Hills.

In addition, PalAmerican provides unparalleled support, with senior managers readily available for all account managers, supervisors, and security officers to assist with everyday needs. Our clients value the accessibility of our PalAmerican management team and their immediate response time with clear communication and follow-up when there is a high-priority issue. We take great pride in our timely customer service solutions which continue to strengthen our client partnerships.

We are fully confident in our ability to provide Town of Los Altos Hills with our premier security services to benefit your organization. When you partner with PalAmerican as your dedicated security provider, we ensure our best practices to improve your overall security program that provides safe and secure grounds for all your staff and visitors.

Should you have any questions regarding our proposal, please contact me anytime. Once again, thank you for this proposal bid opportunity and we look forward to our future partnership.

Sincerely,
Richard McDiarmid
Director Of Operations
PalAmerican Security

CONFIDENTIAL SECURITY PROPOSAL
3 Pricing Proposal
PalAmerican Security has provided pricing for all the locations that Town of Los Altos Hills covers in the tables below. Submitted pricing is based on the following recommended security staffing and deployment plan.

PalAmerican has closely studied the labor market for all locations within Town Of Los Altos Hills and the surrounding jurisdication, and the trajectory that is anticipated for wages to attract, retain, and engage security officers who will meet our service expectations for your organization. We recognize that desirable employees have many choices in the security industry.

Our analysis of current market conditions to hire the quality of staff considered necessary is aligned with Town of Los Altos Hills designated pay rates and demonstrated in the financial proposals noted below based on the pay and volume delineated by Town of Los Altos Hills .

Notes to Pricing
▪ Please note market conditions are changing rapidly with today’s labor shortage and PalAmerican would like the opportunity to mutually evaluate set wages at least annually, or as market conditions warrant, to establish a competitive wage that attracts, retains, and engages professional security officers and supervisors.
▪ Invoicing for Town of Los Altos Hills will not change as officer’s elevate during their tenure or with industry recognized certifications.
▪ Costs for security patrol vehicles; other security / emergency management leadership roles; consulting or training services can be provided upon request.

All rates are hourly with Overtime and Holidays Billed at 1.5 percent over standard rates.

1. Provided Un-Armed Security Officers and Fully Marked Patrol Vehicles Standard Rate: $54.00 per. Hr.

Overtime / Holliday Rate: $82 per. Hr.

Respectfully Submitted,
Richard McDiarmid
Director Of Operations
PalAmerican Security

ITEM 6A
1 TOWN OF LOS ALTOS HILLS February 20, 2025
Staff Report to the City Council
SUBJECT: RESOLUTION APPROVING 2024-25 AMENDED CITY COUNCIL WORK PLAN
FROM: Cody Einfalt, Deputy City Manager CE
APPROVED: Peter Pirnejad, City Manager PP
RECOMMENDATION: That the City Council should:

Adopt the attached resolution (Attachment 1) approving the amended City Council Work Plan for 2024-25
BACKGROUND:

On January 29, 2025, the City Council held a Priority Setting Session to amend the two-year Work Plan for 2024-25 (See staff report in Attachment 2). The original adopted plan called for 58 projects, and staff proposed adding six (6) new projects that could fit within the staff’s capacity for the year.

Those six projects include:
• City-Wide Survey – (Replacing the Community Development survey) – Staff will conduct a series of short Town-wide surveys that will cover a variety of topics of Town Hall operations. This project was initially suggested by the Council and adapted to make the scope wider reaching.
• Town Website Redesign – Every two years the Town is eligible for a free redesign of the Town’s website through the website hosting company CivicPlus. Now that Town Hall has the capacity, staff is suggesting redesigning the website for the first time in 6 years. • Expired Permit Management – Many permits within the Community Development Department need to go through a process of administering extensions. Staff is recommending this item be added to the workplan.
• Code Enforcement Program Evaluation – There has been a noticeable increase in the number of code enforcement violations taking place in the Town which has caused a backlog in processing the events. Staff is recommending adding this item to the workplan. • Truck Replacement – This item initially was on the workplan but has been postponed mid-year 2024 due to other priorities needing staff attention. Recently two of the Town’s

Staff Report to City Council Page 2
2024-25 Amended Work Plan Adoption
February 20, 2025
vehicles need immediate replacement. Staff is recommending reprioritizing this project to a higher level.
• Fire Hazard Severity Zones Update – The State Fire Marshal is mandated to classify lands within State Responsibility Areas into Fire Hazard Severity Zones (FHSZ), which are categorized as Moderate, High, or Very High fire risk areas. There is a state-mandated update for all cities driven by the need to reassess fire risk using modern data and methodologies to improve community safety and wildfire preparedness. Staff is recommending adding this item to the workplan.

After dialogue and public comments at the session, the Council added six (6) separate/additional projects to the work plan:
• Housing Element Amendment – Staff can explore the possibility of revising the certified Housing element. This item comes from Council and resident feedback received at public meetings over the past several months.
• Emergency Communications Study - Emergency Preparedness and Response Committee (EPRC)– at the November City Council meeting the EPRC gave a presentation to the Council asking to prioritize and establish a budget for the following items: (See full presentation in Attachment 4)
o Improve usage of AlertSCC as our primary emergency mass notification system o Implement audible alerts to augment emergency notification o Mobilize initiative to recognize LAH emergency action leaders o Establish an alternate emergency communications network • HIZ (Home Ignition Zone) – EPRC - The Home Ignition Zone (HIZ) focuses on reducing wildfire risks by modifying the immediate surroundings of a property to prevent ignition from embers and radiant heat. The EPRC is exploring the potential for new landscaping codes in Los Altos Hills to ensure compliance with HIZ principles, with a focus on vegetation management and fire-resistant design.
• Water Conservation (specifically Purissima Hills wish list) – EDPC & EIC. The Water Efficient Landscape Ordinance (WELO) aims to promote water conservation through sustainable landscaping practices. Following a presentation from the Purissima Hills Water District, the EDPC recommended adjusting the WELO Water Conservation Factor to reduce water allocation for new landscapes, aligning it with current usage trends and promoting more efficient irrigation technologies.
• PA and LA Sewer Processing and Conveyance Charges – Finance and Investment Committee (FIC). Investigate LAH share of Sewer Plant Operations and Capital Expense and Markup. The FIC sees this as important due to the $360 million capital improvement project at the Regional Water Quality Control Plant.
• Phase out the Town Quarterly and increase Our Town to four issues per year.

Staff Report to City Council Page 3
2024-25 Amended Work Plan Adoption
February 20, 2025
To accommodate these additional projects in the amended work plan, staff went through a process to identify which projects could be deferred and which projects would need additional resources (budget appropriations). This information is identified in two areas in the Work Plan. The approximate budget implications are identified in the column called “Budget Ask” and the anticipated dates of completion are in the column called “Updated Quarter of Completion.” The proposed amended Work Plan can be seen in Attachment 3 Staff would like to note that approving the amended Work Plan does not approve any appropriations in the current budget cycle. The intent of these numbers is to communicate staff’s best assessment of the budget impacts that were not anticipated in FY24/25. The projects that will need a budget allocation this fiscal year will need to come back to Council for review and approval.

Otherwise, those remaining projects will be incorporated into the FY 25/26 proposed budget.

In addition, the City Council has established an Ad Hoc Committees for the following projects to help staff with capacity

1. Housing Element Adoption – Vice Major Bhateja and Councilmember Mok

2. Emergency Communications – Councilmember Stan Mok*

3. Sewer Charges Research – Mayor Tanka
* This liaison member may change to Vice-Mayor Rajiv Bhateja during the February 20, 2024 meeting.

Although these three AdHoc Committees are not subject to the Brown Act, in the interest of transparency, the staff will be taking notes and sharing them with the council liaisons to share with the rest of the council during the next available council meeting.

Staff took this time to review the entire Work Plan in light of the changes throughout last year and the additional items added by both staff and council and revised the delivery dates to reflect a more accurate depiction of anticipated delivery dates. Although items were not removed from the workplan, a number of items needed to be reprioritized. The staff also added anticipated budget implications on some of the new projects.

At the study session, the Council supported a clear methodology for taking on additional projects during the year that are not part of the Work Plan. The 2-step process was created to allow Committees, after a majority vote, to bring items directly to the Council for consideration. In collaboration with their liaison, an initial report by the Committee will be agendized to ask the Council if a majority supports considering adding the item to the Work Plan; if so, staff will return with a report that outlines the implications (hours and/or budget required, implications for existing projects – dropped, deferred, etc.).
2024-25 CITY COUNCIL WORK PLAN
Amending the 2024-25 workplan will help staff prioritize their bandwidth and set the direction for projects across Town.

Staff Report to City Council Page 4
2024-25 Amended Work Plan Adoption
February 20, 2025
ENVIRONMENTAL REVIEW:

Amending the 2024-25 Work Plan is exempt from California Environmental Quality Act (CEQA) due to this work not being defined as a “project” under CEQA.

FISCAL IMPACT:

Amending the 2024-25 City Council Work Plan does not have any direct financial impact. Projects identified in the plan that require new or additional funding will come before the Council with the 2-year budget approval or throughout the year for approval and budget appropriation.

ATTACHMENTS:

1. Resolution

2. January 29, 2025 Staff Report

3. 2024-25 Amended Work Plan

ITEM 6A, Attachment 1
Resolution __ -25 Page 1
RESOLUTION __ - 25
RESOLUTION APPROVING 2024-25 AMENDED CITY COUNCIL WORK
PLAN
WHEREAS, the City Council engages in a priority setting session to create a work plan for the year ahead; and
WHEREAS, staff assembles a proposed work plan taking into consideration projects that Councilmembers, Committees, and staff would like to accomplish during the year; and WHEREAS, the Work Plan consists of both mandated projects that are required to be completed by the County, State, and Federal governments, as well as other highly desired projects; and WHEREAS, on January 29, 2025 staff presented an amended work plan for the two-year cycle of 2024-25; and
WHEREAS, through deliberation the City Council and staff amended the work plan to accommodate the views of the Council and the bandwidth of staff.

NOW THEREFORE, the City Council of the Town of Los Altos Hills hereby approves of the attached Amended Council Work Plan for 2024-25.

The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a Regular meeting held on 20th of February 2025 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Kavita Tankha, Mayor
ATTEST:
_____
Arika Miller, City Clerk

TOWN OF LOS ALTOS HILLS January 29, 2025
Staff Report to the City Council
SUBJECT: FIRST YEAR UPDATE FOR TWO-YEAR CITY COUNCIL WORKPLAN FOR 2024-2025
FROM: Cody Einfalt, Deputy City Manager
APPROVED: Peter Pirnejad, City Manager
Please note that this staff report only discusses the process of updating the 2024-25 Workplan, which will being around 1:00PM on January 29, 2025.

Prior to this item being called, the City Council will be attending a Workshop for Effective Local Government Leaders from 9:00AM – 12:30 PM
RECOMMENDATION: That the City Council should:

Provide direction on the proposed updated to the 2024-2025 Workplan (see Attachment 1) BACKGROUND:

Assembling the 2024-25 Workplan
In order to accomplish the priorities of the Council in an orderly and effective manner the Town goes through a comprehensive goal-setting process followed by a budgeting exercise. For many years the Council has undertook a goal-setting process in January with feedback coming from the Council, Committees, and staff. This is a comprehensive and collaborative process that involved multiple stakeholders and ultimately the formation of a draft work-plan that reflects the priorities of the Council for the Town. Last year the Town adopted a two-year work plan (January 2024 – December 2025), and this year in January the Council will be working through a similar process to update the two-year workplan.

Staff would like to note that they received a suggestion from the Finance and Investment Committee to modify the Town’s priority setting process by implementing a rolling two-year plan.

Staff will consider this approach in future priority setting sessions.

The process of revising the two-year workplan begins with a review of the adopted workplan from the January 2024. A year ago, staff presented a proposed set of priorities that reflected the goals of the Planning Commission and the 12 other standing committees, the City Council, and staff.

The entire Workplan and attachments were presented to the Council on January 23, 2024, followed by the adopted Workplan presented to Council on February 15, 2024 (see Attachment 2). The

Staff Report Page 2
Mid Cycle Workplan Update 2024-2025
January 29, 2025
goals were reviewed by staff and prioritized prior to presenting them to the entire Council in a public meeting. By the end of the session the Council had received public input and eventually adopted a Workplan with modifications that represented the shared Council vision of what the staff should focus on throughout the upcoming two years.

Over the course of the 2024 calendar year the committees, Council, and staff were faced with new challenges and priorities that were accommodated through the year. In the end, the Council adopted some 63 projects as part of the 2024 Workplan as well as several additional projects that were added to the Workplan during the year. A lesson learned over the course of that effort was that the projects themselves took longer than anticipated due to disruptions such as staff turnover, competing priorities, new priorities, state mandates, natural disasters, and unforeseen events. This is one of the main reasons for the adoption of the two-year workplan.

Additionally, Staff observed in several prior Workplans that many projects that get identified every year take more than a single year to complete. This has led to multiple carryover items from one Workplan to the next. Therefore, assembling a two-year Workplan as opposed to setting the priorities for a single year can save time. Staff’s hope is that this shift in the Town’s goal setting process will reduce planning work for staff and better align with the Town’s goals that are set at the beginning of each year.

In 2024 the two-year Workplan adopted by the Council included a total of 63 key projects made up of 138 individual milestones. They included things such as adopting the housing element, decreasing the number of residential burglaries in Town, improving the Town’s permitting system, expanding broadband for residents, and more. A mid-year status update of those Workplan items was reviewed by the Council on July 18, 2024 (see Attachment 3).

Back in July we completed approximately 8 of the 63 Projects and 35 were in progress. By the end of 2024 we had completed 20 Projects and 27 are in progress.

Process of Updating the Two-Year workplan
To kick off updating the 2024-25 Workplan, staff re-engaged Dr. Frank Benest, ICMA Executive Leader, to review all the priorities from the existing workplan and discuss possible changes. In addition, we engaged Kevin Duggan from RPMG, an established and experienced public sector leader with deep experience dealing with Council and communities, to take this opportunity to help the council improve their governance. The ultimate goal of this portion of the agenda is to understand what the council needs from each other, what the council needs from the staff, and what the staff needs from the council to help drive more effective local governance. The second part of the retreat will be managed by staff and considers the needs of the Council, committees, and commission in our updated goals for 2025. Once adopted, the staff will use this document to update the two-year budget based on the goals.

Staff Report Page 3
Mid Cycle Workplan Update 2024-2025
January 29, 2025
The goal setting process started in September when staff asked the Committees for any updates they may want to make to the two-year plan. Five Committees responded to the request (EIC, EDPC, EPRC, FIC, and Pathways). In reviewing the list of projects, staff attempted to accommodate as many of the projects as we could with respect to staff constraints and capacity.

The committees have all had a chance to voice their perspective and have come to some level of consensus with the staff and the Council liaison.

Kevin Duggan followed up with one-on-one interviews in September (and on) with each of the Councilmembers to discuss their goals and objectives from the coming year. Town staff then went through an organized process, internally, to discuss existing projects in the two-year workplan and proposed additions they thought were needed and that could be accommodated given the available bandwidth. This involved two separate half-day retreats on October 1st and December 3 rd. By the
end of 2024 staff had assembled proposed updates to the workplan that considered mandates, carryover items from the 2024 calendar year, staff-identified priorities as well as current goals assembled from the Council, planning commission, and standing committees.

Understanding the Proposed Changes to the Workplan
The main body of the proposed Workplan is comprised of items either identified in Green (existing projects) or Blue (new projects being proposed). The matrix includes a range of data that will be reviewed in the staff presentation. It has enough perspective for the Council to discuss strategic direction and detail for staff to prioritize work and build a budget that anticipates the Council’s top priorities.

Staff is recommending the following new projects be added to the 2024-25 workplan. Below are the new projects:

Projects That Are Proposed To Add To Workplan (within capacity) • City Wide Survey – (Replacing the Community Development survey) – Staff will conduct a series of short Town-wide surveys that will cover a variety of topics of Town Hall operations. This project was initially suggested by Council and adapted to make the scope wider reaching.
• Town Website Redesign – Every two-year the Town is eligible for a free redesign of the Town’s website through the website hosting company CivicPlus. Now that Town Hall has the capacity, staff is suggesting redesigning the website for the first time in 6 years. • Expired Permit Management – Many permits within the Community Development Department need to go through a process of administering extensions. Staff is recommending this item be added to the workplan.

Staff Report Page 4
Mid Cycle Workplan Update 2024-2025
January 29, 2025
• Code Enforcement Program Evaluation – There has been a noticeable increase in the number of code enforcement violations taking place in the Town which has caused a backlog in processing the events. Staff is recommending adding this item to the workplan. • Truck Replacement – This item initially was on the workplan but has been postponed mid-year 2024 due to other priorities needing staff attention. Recently two of the Town’s vehicles need immediate replacement. Staff is recommending reprioritizing this project to a higher level.
• Fire Hazard Severity Zones Update – The State Fire Marshal is mandated to classify lands within State Responsibility Areas into Fire Hazard Severity Zones (FHSZ), which are categorized as Moderate, High, or Very High fire risk areas. There is a state mandated update for all cities driven by the need to reassess fire risk using modern data and methodologies to improve community safety and wildfire preparedness. Staff is recommending adding this item to the workplan.

The items above represent the projects that staff feel are important enough to be considered by the City Council and can be accommodated by staff. However, there were several other projects that have come up that staff could not accommodate without reprioritization or additional staffing/consulting. Council can discuss these projects, and if any are pressing to be completed, additional resources or reprioritization will be needed to get them on the 2024-25 workplan.

Projects That Will Need Council Direction To Add (not within capacity or budget, and will require additional resource or reprioritization) • SVCE 2025 Priorities - Silicon Valley Clean Energy (SVCE) has set priorities for 2025 focusing on building decarbonization and reducing greenhouse gas emissions in local communities. These goals align with state climate action mandates and are being implemented in partnership with municipalities and environmental committees. • Westwind Barn Master Plan – There are several large maintenance items that need attention in the upcoming years at the Barn, both inside the barn and outside in the arenas.

To get a better understanding of priorities at this location, staff recommends conducting a masterplan of the Barn.
• Photovoltaic MDA Credit Program – At the November 2024 City Council Meeting Councilmember Mok requested that the Town look into establishing a program to allow homeowners additional MDA for the installation of solar panel.

Staff Report Page 5
Mid Cycle Workplan Update 2024-2025
January 29, 2025
Committee Requests To Add (not on workplan – will need resources or reprioritization)
• Emergency Communication Items – Emergency Preparedness and Response Committee (EPRC)– at the November City Council meeting the EPRC gave a presentation to Council asking to prioritize and establish a budget for the following items:
(See full presentation in Attachment 4)
o Improve usage of AlertSCC as our primary emergency mass notification system o Implement audible alerts to augment emergency notification o Mobilize initiative to recognize LAH emergency action leaders o Establish an alternate emergency communications network • HIZ (Home Ignition Zone) – EPRC - The Home Ignition Zone (HIZ) focuses on reducing wildfire risks by modifying the immediate surroundings of a property to prevent ignition from embers and radiant heat. The EPRC is exploring the potential for new landscaping codes in Los Altos Hills to ensure compliance with HIZ principles, with a focus on vegetation management and fire-resistant design.
• Water Conservation (specifically Purissima Hills wish list) – EDPC & EIC. The Water Efficient Landscape Ordinance (WELO) aims to promote water conservation through sustainable landscaping practices. Following a presentation from the Purissima Hills Water District, the EDPC recommended adjusting the WELO Water Conservation Factor to reduce water allocation for new landscapes, aligning it with current usage trends and promoting more efficient irrigation technologies.
• PA and LA Sewer Processing and Conveyance Charges – Finance and Investment Committee (FIC). Investigate LAH share of Sewer Plant Operations and Capital Expense and Markup. The FIC sees this as important due to the $360 million capital improvement project at the Regional Water Quality Control Plant.

Committee Requests (To Remove Items)
• Pathways Committee requested to remove the following items from the workplan o Fremont-Redwood Grove Path – Recommend removing this project from the 2024-25 Work Plan since the project has not progressed and since there are unresolved liability issues with the City of Los Altos. o Miscellaneous Pathways – Recommend removing Deer Creek Extension to Natoma from the 2024-25 Work Plan; and correct spelling of “Zappettini” Court.

Staff Report Page 6
Mid Cycle Workplan Update 2024-2025
January 29, 2025
Updating the Workplan Throughout the Year (looking ahead) Any significant changes or additions to the Workplan will need to include reprioritization and potentially the addition of staffing and budget resources. Although the WorkPlan is a guiding document the staff understands that it is fluid and things change. Those things could be the scope and complexity of the project, council priorities or a variety of unforeseen circumstances arise that require the council and staff to take another look at our goals.

In light of the need for flexibility and for the committees to be heard, a new process was established last year for bringing items forward outside of this formal goal setting process. If a committee (or a Council member) wants to add a new work item, they can request it be added to a Council agenda.

A new section on the Council agenda has been made – “Committee Initiated Items”. During a City Council meeting, the Council will first decide if it is worthy of consideration and if a majority agrees, then staff would return at a future meeting with a follow up report outlining the implications of adding the new item which may require reprioritization, funding or additional resources.

Understandably many things are outside of our control like natural disasters, community concerns, new Council priorities, a spike in residential burglaries, and unforeseen challenges like the wave of atmospheric rivers that pummeled the entire state. The staff and Council will work together to adjust and pivot in light of new developments with the goal of keeping the community informed as we work through the calendar year. The important takeaways are to understand that the Workplan is a living document that can change, extend, or adjust depending on the Council’s direction. However, to ensure that we can properly allocate staff and budget resources to the identified Council priorities on the adopted Workplan, it is important that the Council take very seriously the addition of new goals. As noted above, we ask that the Council take a two-step process to change the Workplan.

DISCUSSION:

Prior to the Council meeting, the community and Council will have received this staff report and the attachments. Following the Council’s receipt of this packet the City Manager will have met individually with each Council member to answer questions and walk through the entire process.

The staff encourages written comments or questions from the public which we will attempt to answer prior or at the public meeting and include as part of the public record.

The following is a brief high-level summary of the day’s agenda. From 9:00 AM to 12:30 PM the City Council will be in a Councilmember workshop with Kevin Duggan. The priority setting session to update the 2024-25 workplan will begin roughly at 1:00 PM.

In the second portion of the day dedicated to council goals, the City Manager starts by walking the Council and the community through a process that starts with introductions and grounding principles followed by a review of the status of the first year of the two-year Workplan. Then a detailed explanation of staff’s proposed updates will be made on new projects to add to the

Staff Report Page 7
Mid Cycle Workplan Update 2024-2025
January 29, 2025
Workplan. The Council will discuss and ask questions related to the proposed Council Workplan.

This will include an overview of items that fit within staff capacity, and items requests to add/ be removed by Committees.

Following public comments on the staff recommendation, the Council will discuss possible changes to the proposed updates which may include net new items or ones were identified as outside of staff capacity. Then following another round of public comments, the Council will vote for their most pressing additional items to the proposed updates to the workplan. Staff will take a brief huddle to revise the workplan (if needed) and present it to the Council for deliberation and action. See Attachment 5 for the run-of-show for January 29 The guiding principles for the meeting are those similar to past Priority Setting Sessions. They are as follows:
• Day-to-day operations take up 85-95% of our organizational capacity. • If everything is a priority, nothing is a priority; only extraordinary or critical items should be added to the list mid-cycle. If new items are added, changes to the adopted plan are likely to be necessary.
• Upcoming budget allocations need to be aligned with the Council’s Priority Policies and the related key projects.
• The City Council’s role is to provide strategic direction and policy guidance, approving budget and staffing resources.
• Management’s role is to implement the Council’s adopted Workplan while, recommending resources needed, identifying reasonable timelines, achieving key milestones, noting constraints, and recommending adjustments along the way.

Going forward, the staff will bring back the final workplan at the February 20th City Council meeting for final approval. The Workplan considers items that will have budget implications and will be used to construct the proposed updated to the two-year FY 24-26 Budget that will come to the Council in May/June 2025 for approval. Over the course of the year, like in 2024, the staff will provide the Council a progress report in the summer/fall. Staff will accommodate minor additions to the Workplan that do not take significant staff and budget resources. As noted previously in the “two-step process,” staff recommends that, going forward, the Council be asked to weigh the importance of new priorities while considering the adopted Workplan and make tradeoffs prior to adding new goals.

ENVIRONMENTAL REVIEW:

The proposed project does not qualify as a “Project” as defined in California Government Code Section 15378(b) of the California Environmental Quality Act (CEQA).

Staff Report Page 8
Mid Cycle Workplan Update 2024-2025
January 29, 2025
FISCAL IMPACT:

There is no fiscal impact to the Goal Setting exercise, but the approved Workplan will include projects that will have budget implications. Those projects that require Council budget authorization will come back to the Council for approval in budget setting process.

ATTACHMENTS

1. Proposed Updated to the 2024-25 Work Plan

2. February 15, 2024 Staff Report – Adoption of the 2024-25 Work Plan

3. July 18, 2024 Midyear Update on 2024-25 Work Plan

4. November 21, 2024 - EPRC Presentation to Council

5. Councilmember Workshop & 2025 Council Priority Setting Session Run of Show

CITY COUNCIL STRATEGIC PRIORITIES IMPLEMENTATION PLAN
as of
Host community events throughout the year ongoing ongoing Objective Design Standards (Multi-Family) Establishment of methodology; creation of draft document 2026 Q1 no change Zoning Ordinance (Multi-Family) Creation of draft document 2026 Q1 no change CEQA (Multi-Family) Creation of draft document 2026 Q1 no change Inclusionary Housing / Feasibility (A-6) Identify relevant example policies; craft draft policy 2026 Q1
no change
ADU Ordinance Update (B6) Creation of draft document 2024 Q2 complete Emergency Shelter/LBNC/Residential Care
Ordinance Update (E-2,3, 4, and 5) Identify relevant example policies; craft draft policy 2024 Q3
complete
Density Bonus Ordinance and Incentives for
ELIs (E-1) Identify relevant example policies; craft draft policy ongoing ongoing
By-right Approval Ordinance (A-4) Creation of draft document 2026 Q1 no change Farmworker and Employee Housing Ordinance
(E-8) Identify relevant example policies; craft draft policy 2025 Q1 no change Streamline Committee Review Process -
Ordinance Update (B-15) - Ordinance Update
Work with committees to identify review parameters; craft draft process for review by all committees
2024 Q3
complete
Story Pole Policy - Ordinance Update (B-16) Identify relevant example policies; craft draft policy 2025 Q3 no change Grading Ordinance Update (B-11) Creation of draft document 2024 Q2 complete SB 35 and SB 330 Application Streaming
Procedure (B1) Identify relevant example policies; craft draft policy 2026 Q1 no change No Net Loss Monitoring (A-2)
Identification of project and permit tools to assess activity against existing inventory
ongoing
ongoing
Pre-approved ADU Plans Develop standards for pre-approval of ADUs 2025 Q1 complete Education, Outreach, and Information
Exchange for housing resources (A-9, A-11, A14, F-2, F-3, F-4, F-5, F-6, G-1, G-2, G-3, and G4) Establish scope/parameters for each task; identify relevant examples; prepare outline to execute programs
2024 Q3
complete
$
~$100k
Housing Element Amendment Engage residents and amend the Housing Element
Work with the Ah Hoc Housing Element Committee to amend the certified Housing Element NEW 2026 Q1 CDD PC
Water Conservation (WELO) The Water Efficient Landscape Ordinance (WELO) aims to promote water conservation
through sustainable landscaping practices.

Following a presentation from the Purissima
Hills Water District, the EDPC recommended
adjusting the WELO Water Conservation
Factor to reduce water allocation for new
landscapes, aligning it with current usage
trends and promoting more efficient irrigation
technologies.

Planning Commission and City Council, 1st and 2nd ordinance reading
NEW 2025 Q2 CDD EIC, EDPC
TBD Our Town Publication Phase out The Quarterly and increase Our Town to four issues a year
Coordinate with Our Town for the switch
NEW 2025 Q2 CMO
LEGEND
$ New Budget Appropriations or Proposed for FY25-
26Prioritization Date Change
New Project/Initiative
VALUE/PRIORITY AREA: Maintain Quality of Life and Community Character POLICY VALUE STATEMENT: Better leverage healthy relationships with community members and maintain rural atmosphere in Town Budget Asks KEY PROJECTS/INITIATIVES KEY OUTCOME MILESTONES FOR 2024-25

INITIAL QUARTER

OF COMPLETION

COMMITTEE

INVOLVEMENT

LEAD DEPARTMENT

UPDATED QUARTER

OF COMPLETION
Host a diverse and robust set of special
events/programming that brings the
community together
CRC
P&R
Housing Element Programs
PC
EDPC
Community Building through Town-wide Events
and Activities Community Services
CDD
Continue to produce the activity guide 2x a year ongoing ongoing

CITY COUNCIL STRATEGIC PRIORITIES IMPLEMENTATION PLAN
as of
Design Q2 2024 Q3 2025
Obtain encroachment permit from Santa Clara County and City of Los Altos Q2 2024 Q4 2025
Construct Phase 2 & 3 Q3 2024/2025 Q3 2026
Fremont Redwood Grove Path Report back to Council on the agreement between the city of LA and the Town
NA
NA NA Public Works Pathways
Update the pathway fee Complete fee nexus study Q2 2024 Q2 2025 Develop Long-Term Pathways Improvement
Plan
Develop long-term plan for pathways Q4 2024 Q4 2025
CEQA - Initial Study Q3 2024 Q4 2025
Update Master Paths Plan Q3 2024 Q1 2026
Design/Environmental Q3 2025 TBD
Construction Q4 2025 TBD
Design offroad paths Q2 2024 Q1 2025 Partial
Construct offroad paths Q4 2024 Q2 2025 partial
Design roadside paths Q2 2025 Q3 2025 Partial
Construct roadside paths
Q4 2025 Q3 2026 Partial
Continue Replacement of Road Signage across the
Town
Meet State’s reflective code requirement Sign replacement Q4 2024 & 2025 no change Public Works
Design Q2 2024 no change
FIC / Pathways
Pathways
Middle Fork to Maple Leaf Court Path Construct Middle Fork to Maple Leaf Court Path
Work with the Pathways Committee to reprioritize
the order of pathways to be worked on
throughout the year
FY 2024/25 Street Repair Project
Pathways
Miscellaneous Pathways - Build offroad and
roadside pathways prioritized by the Pathways
Committee such as Deer Creek Extension to
Natoma, Dawn Ridge to Hilltop, Zappenity
Court to Central Drive, Moody to Altamont,
and Burke Lane to Robelda for offroad paths;
and Robleda Road, Magdelena Avenue,
Fremont Road, and west side of Manuella
Road for roadside pathways; Review
appropriate design and alignment for Pathway
on Page Mill /Via Feliz (easy half which deadends into private property) with Pathways Committee and Old Page Mill to Christopher
Lane Path once easement is obtained
Public Works
Annual Pavement Rehabilitation and Drainage
Improvement
Pathway Fee Nexus Study
Public Works
$
$200K-$300K
(increased)
Summerhill Avenue Pathway - Phases 2 & 3 Construct Summerhill Pathway VALUE/PRIORITY AREA: Protect & Maintain Infrastructure
POLICY VALUE STATEMENT: Maintain and expand Town assets through new technology and processes Budget Asks KEY PROJECTS/INITIATIVES KEY OUTCOME MILESTONES FOR 2024-25

INITIAL QUARTER

OF COMPLETION

COMMITTEE

INVOLVEMENT
Pathways
LEAD

DEPARTMENT
Public Works

UPDATED

QUARTER OF

COMPLETION
Public Works
Public Works

CITY COUNCIL STRATEGIC PRIORITIES IMPLEMENTATION PLAN
as of
Construction Q4 2024 no change
Design Q2 2025 Q1 2026
Asset Management for Storm Drain System (Phase 1) Q3 2024 Q3 2025 Design of Annual Storm Drain Improvements CIP Q2 2024 & 2025 TBD Construction of Annual Storm Drain Improvements CIP Q3 2024 & 2025 TBD Design Q3 2024 no change
Secure funds for construction Q3 2024 no change
Construction Q3 2025 no change
Purchase and install a Conex container for
additional storage space needed
Purchase and Install
Q3 2024 Q2 2025
Design (Phase 1) Q2 2024 Q2 2025
Construction (Phase 1) Q2 2025 Q4 2025
Master Plan for Corp Yard Building Master Plan Q4 2024 complete Design Q2 2024 Q4 2024
Construction Q4 2024 Q3 2025
Complete Matadero Creek Erosion Project Construction Q4 2024 Q3 2025 Mitigation Measures for the Matadero Creek
Erosion Project
Mitigation Measure
Q2 2025 Q1 2025
Design Q1 2024 complete
Construction Q2 2025 no change
Undergrounding of Overhead Facilities by Utility Companies Q3 2025 no change
Obtain Council direction Q2 2024 no change
Design TBD no change
Construction TBD no change
Town Facilities Energy Efficiency Assessment (now
to include Council Chamber HVAC Electrification).

Formally scaled down goal
Finalize recommendation and obtain direction
from Council
Conduct Study
Q1 2024 Q1 2026
City
Managers/Public
Works
Environmental
Initiative
Town Hall Electrical Panel Upgrade Upgrade Main Electrical Panels for Town Hall with Battery Backup System
Installation
Q1 2024 complete
City
Manager/Public
Works
Environmental
Initiative
Town Hall Q2 2024 Q4 2025
Westwind Barn Q3 2024 Q4 2026
Town Hall Facility Security Camera Upgrade Bring all Town facility security systems under one platform City Manager
Maintenance and improvements of Town’s SD
infrastructure
Matadero Creek
Sewer Rehabilitation and Repair 2025 Sewer CIP
Heritage House Remodel
Annual Storm Drain Improvements Program
FY 2024/25 Street Repair Project
Public Works
Construction
Underground
Subcommittee
History/
Emergency
Preparedness
and Response
Town Hall
Subcommittee/
PC
Finalize recommendation and obtain direction
from Council; Increased workspace for Town
Staff to address community needs
Civic Center Improvements
Locker Room Improvements
Public Works
Public Works
Improve Heritage House for multi-purpose use
Public Works
Public Works
Corporation Yard Improvements
Annual Pavement Rehabilitation and Drainage
Improvement
Public Works
Undergrounding Utilities - El Monte Rule 20A Finalize design and construction for the El Monte Fire Station Undergrounding Project
(Rule 20A) Public Works
Q4 2025 Q2 2026
FY2025/26 Street Repair Project Public Works

CITY COUNCIL STRATEGIC PRIORITIES IMPLEMENTATION PLAN
as of
Corp Yard Q4 2024 Q4 2027
Council Chambers Audio/Video Upgrade Council Chambers A/V Upgrade Construction Q1 2024 completed
City Clerk/Public
Works
Fence repair for Fields 2 & 4 Q4 2024 & 2025 Q4 2025
Parking lot maintenance Q3 2024 Q3 2025
Lower Arena repair
Q3 2024 Q3 2025
Paddock repair
Q3 2024 & 2025 Q4 2025
Broadband Install fiber broadband network at priority
areas
Complete Installation
Q4 2025 no change Public Works Tech
Research and formulate a negotiations strategy (starting in July 2025) NEW Q4 2025 Public Works Ad Hoc
Enter into negotiations with PA and LA with potential additional studies required. NEW Q1 2026 Public Works Ad Hoc
Replace Ford F250 NEW Q2 2025 Public Works
Replace Dodge Dakota/Superintendent Truck w/ Electric
Vehicle (Lease or Buy) NEW Q4 2025 Public Works
LEGEND
$
New Budget Appropriations or Proposed for FY25-
26 Prioritization Date Change
New Project/Initiative
Investigate LAH share of RWQCP Operations
and Capital Expense and Markup from Palo
Alto and Los Altos
Palo Alto and Los Altos Sewer Processing &
$ Conveyance Charges Negotiations
$60k to $150k
$
~$120K
(included in MidYear Budget
Adjustment)
Town Hall Facility Security Camera Upgrade Bring all Town facility security systems under one platform City Manager
Fleet & Equipment Procurement Replace 15+ year old trucks and equipment Westwind Community Barn facility
improvements
Westwind Community Barn Improvement
Purissima Park Improvement Program Purissima Park Improvements Public Works Public Works

CITY COUNCIL STRATEGIC PRIORITIES IMPLEMENTATION PLAN
as of
Renew or Terminate Private Security Contract 2024 Q2 complete Revise ALPR Policy 2024 Q2 complete
Update the EOP 2024 Q4 2025 Q4
Update the Evacuation Annex 2025 Q4 no change
Install redundant ISP to Town Hall 2024 Q4 complete
Complete Safety Element Have a completed GP Element Creation of a Draft Document 2025 Q2 2025 Q4 CDD EPRC ~$10K Fire Hazard Severity Zones Update State is mandating cities to update their Fire Hazard Severity zones
Update Maps, Committee(EDPC), PC, CC 1st and 2nd reading NEW 2025 Q2 CMO / CDD EPRC
Improve usage of AlertSCC as our primary emergency mass notification system, NEW Q4 2025 CMO EPRC
Implement audible alerts to augment emergency notification NEW Q4 2025 CMO EPRC
Mobilize initiative to recognize LAH emergency action leaders NEW Q4 2025 CMO EPRC
Establish an alternate emergency communications network NEW Q4 2025 CMO EPRC
TBD
HIZ (Home Ignition Zone) focuses on reducing wildfire risks by modifying the immediate surroundings of a property to
prevent ignition from embers and radiant heat
possible code amendment
NEW 2025 Q4 CDD EPRC
LEGEND
$
New Budget Appropriations or Proposed for FY25-
26 Prioritization Date Change
EPRC
VALUE/PRIORITY AREA: Promote Public Safety
POLICY VALUE STATEMENT: Maintain the high level of public safety in the Town.

Budget Asks KEY PROJECTS/INITIATIVES INITIAL QUARTER

OF COMPLETION

COMMITTEE

INVOLVEMENT
KEY OUTCOME MILESTONES FOR 2024-25
LEAD

DEPARTMENT
CMO Tech
Emergency Preparedness
Emergency Communication items from the EPRC
(Sound Study, ALERT SCC)
~$130K
Improve the Town's emergency response
framework

UPDATED

QUARTER OF

COMPLETION
CMO
Decrease the amount of burglaries in Town
Keep the Town Safe and prepared for
emergencies
Public Safety

CITY COUNCIL STRATEGIC PRIORITIES IMPLEMENTATION PLAN
as of
Trakit Fee Schedule Indexing 2023 Q4 complete CDD
Trakit Upgrade 2024 Q1 2025 Q1 CDD
Electronic Plan Storage 2024 Q1 complete CDD
Trakit Electronic Submittals 2024 Q1 complete CDD
Trakit Automated Scheduling (online) 2023 Q4 complete CDD Trakit Automated Scheduling (online or phone app) 2024 Q4 ongoing CDD CLSB integration 2024 Q1 2025 Q1 CDD
Ownership record maintenance 2024 Q4 ongoing CDD
Trakit GIS integration 2024 Q4 2025 Q2 CDD
Land Use Element Updates Increased accuracy and efficiency from Planning Staff; satisfaction of HCD
requirements
Creation of Document
2025 Q1 2026 Q1 CDD PC
GIS Updates Increased accuracy and efficiency from
Planning Staff; satisfaction of HCD
requirements
Creation of Document
2025 Q2 no change CDD
Historic Preservation Process Update Increased transparency and effectiveness of Planning and Building staff regarding historic
preservation efforts HC to prepare draft policy/processes; CDD to review and suggest edits needed to integrate into GP and Muni Code 2024 Q2 2025 Q4 CDD History
Impact Fees Assessment Complete an assessment of current impact fees as the basis to assess whether new or
revised fees are warranted
Prepare draft fee study
2025 Q4 no change CDD FIC
Heat Pump Rebates Promote the use of heat pumps Continue to offer rebates for the instillation of Heat Pumps Ongoing ongoing CDD EIC
Electrification Assessments Promote electrification of homes Continue to offer rebates for electrification assessments Ongoing ongoing CDD EIC
Reach Codes 2023 Adopt new reach codes for 2023 Code Cycle Adoption of Reach Codes 2024 Q1 complete CDD EIC Reach Codes 2025 Adopt new reach codes for 2025 Code Cycle Research expected Code amendments; prepare preliminary outline for Code updates 2025 Q4 no change CDD EIC
Leaf Blower Regulation Implementation Enforce Town's new leaf blower regulations Enforce Leaf Blower Regulation through public education and outreach campaign Ongoing ongoing CDD EIC
Completion of Report 2024 Q1 2025 Q1
Refunds ongoing ongoing
Permit Fee Audit Study Audit Building Permit Fees and issues refunds if necessary
Permit Fee Audit
2024 Q2 2025 Q2 CDD FIC
TRAKiT & eTRAKiT Upgrades Increased efficiency from Planning and Building Staff
VALUE/PRIORITY AREA: Increase Effective Service Delivery & Governance POLICY VALUE STATEMENT: Advance Town operations to better serve the community Budget Asks KEY PROJECTS/INITIATIVES KEY OUTCOME MILESTONES FOR 2024-25

INITIAL QUARTER

OF COMPLETION

COMMITTEE

INVOLVEMENT
LEAD

DEPARTMENT

UPDATED

QUARTER OF

COMPLETION
Deposit/Permit Tracking Report Track Deposit accounts for building, planning and public works

CDD FIC

CITY COUNCIL STRATEGIC PRIORITIES IMPLEMENTATION PLAN
as of
Cost for Service Study Complete a Cost for Service Study which is the basis to evaluation new fees
Solicit consultant support, execute contract to prepare Study 2025 Q2 no change ASD / CDD FIC
New Building Permit Fee Schedule Update the Town's Building Fee Schedule in line with the new COS Study
Solicit consultant support, execute contract to prepare draft Fee Schedule 2025 Q2 no change ASD / CDD FIC
PV Permit Streamlining - Solar App Plus Streamline the PV Permitting process Launch a e-permitting solution for solar PV 2024 Q3 complete CDD EIC Green House Gas Inventory Complete a Green House Gas Inventory to track GHG Emissions
Partner with EIC and CSG for completion of GHG Inventory Ongoing ongoing CDD EIC
Adopt mid-year budget adjustment for FY2023-24 Q1-2024 complete Adopt Biennial Budget for FY 2024-2026 Q2-2024 complete Apply for GFOA Budget Presentation Award for FY 2024-2026 Q2-2024 complete
Prepare interim audit FY 2023-2024 Q2-2024 complete
Prepare year end closing FY 2023-2024 Q3-2024 complete
Adopt Annual Financial Reports FY 2023-2024 Q4-2024 complete Apply for GFOA Financial Reporting Award FY 2023-2024 Q4-2024 complete Prepare interim audit FY 2024-2025 Q2-2025 no change
Prepare year end closing FY 2024-2025 Q3-2025 no change Adopt Annual Financial Reports FY 2024-2025 Q4-2025 no change Apply for GFOA Financial Reporting Award FY 2024-2025 Q4-2025 no change Review and update existing Financial Policies Q1-2025 no change Create Financial Policy for uncollectible Accounts Receivables, stale dated checks or escheatment process, and Purchasing Policy
Q1&Q2-2025 no change
Implement updated Financial Policies Q3&Q4-2025 no change Use and streamline functions of ERP system (Budget/Project Accounting/Purchasing/AP/Fixed Asset) Q1&Q2-2025 no change ASD Change method of payment to vendors from paper check to EFT/Direct Deposit/BillPay by integrating with ERP system Q1&Q2-2025 no change ASD Determine if the need for software exists. Q2 2024 complete Determine if the existing Civic Clerk or Laserfiche can be used Q2 2024 Q2 2025
Research agenda management systems and select one Q4 2024 Q3 2025 Determine if the need for software exists Q2 2024 complete Research system and select one Q3 2024 complete
Prepare by ordering supplies from MCA Direct; attend the County’s Orientation Q2 2024 complete
Nominations Open Q3 2024 complete
Conduct Election Q4 2024 complete
Hire consultant to assist with records retention/destruction Q2 2024 complete FIC
FIC
ASD
ASD
ASD
Financial Policies ASD
Maximize functions of EPR system and change to
online payment
Internal Control
Internal Control
Annual records review 2X per year
Clerk Tech
Tech
Explore Public Records Act Responsive Software
Explore an Agenda Management System
Clerk
Clerk
Clerk
FY 2024-25 Annual Financial Report
Budget for the Town with Award
Financial Reporting Award
FIC
FIC
Streamline the agenda process
2024 General Municipal Election Run a successful election Maintain the records according to the records
retention schedule
Assist in responding to PRA’s in a timely
manner. PRA’s have increased in recent years.

FY 2024-2026 Two-Year Budget
FY 2025-26 Annual Financial Report Financial Reporting Award

CITY COUNCIL STRATEGIC PRIORITIES IMPLEMENTATION PLAN
as of
Hire consultant to assist with records retention/destruction Q4 2024 complete
AI Use Policy Prepare staff to use AI in work Adopt Policy Q1 2024 complete CMO Tech Check-in on Cultural Reset Items - Stay Interviews + new round Q3 2024/2025 Q2 2025 Conduct Development Conversation Training Q2 2024 complete IT Managed Services RFP Maintain our IT systems Award a contract Q2 2024 complete CMO Tech Complete Q2 2024 complete
Implement Recommendation Q3 2024 complete
Upgrade Phone System Increase efficiency from staff Research and implement Q2 2024 complete CMO Internal Purchasing Policy Internal purchasing policy for goods, services, and public works projects
Council approval of Internal Purchasing Policy
Q3 2024 Q2 2025 ASD FIC
$30K Town Survey (formerly the CDD Survey) Conduct a satisfaction survey of Town operations
Complete 6 digital surveys over the course of 12 months NEW SCOPE Q4 2026 CMO
Expired Permit Management Conduct an assessment of expired Town permits
Come up with a solution to handle ongoing permits in Town to catch them before they expire NEW Q4 2025 CDD
TBD
Code Enforcement Program Evaluation Conduct an assessment of the Town's code enforcement operations
Produce recommendation to City Council on changes to the Code Enforcement Division to take affect next FY NEW Q4 2025 CDD $
~$20K
Upgrade the Town's Website Refresh the Town's website with CivicPlus Increase ease of navigation on the Town's Website NEW Q4 2025 CMO
LEGEND
$
New Budget Appropriations or Proposed for FY25-
26 Prioritization Date Change
Annual records review 2X per year
Clerk
Maintain the records according to the records
retention schedule
Continue Employee Enhancement & Retention
Program + Onboarding new employees
Maintain Employees
CMO
Complete Organizational Assessment
Increase efficiency from staff
CMO

2 signed in 1968. Adjusting the underlying eƯluent rates used to calculate the Town’s share of the plant direct expense and the markup on those direct costs would require investigation and additional funds. This should be a second phase consistent with the work plan proposal. Request the initial phase start immediately. Resources required are small.

Thank you.

Best,
Allan

Item 7A Attachment 1

DRAFT ZONING AMENDMENTS
SECTION I. Revisions to Article 2 “Definitions” of Chapter 1 of Title 10 The following new definitions are hereby added to Section 10-1.202, “Designated”, shown in their entirety below in red double underline and to be inserted in alphabetical order with other definitions. Other articles, sections, subsections, paragraphs, definitions, and texts not modified by this amendment are not included below and shall remain in full force and effect.

Employee Housing means housing as defined in Section 17008 of the California Health and Safety Code (HSC), for six or fewer employees.

Farmworker Housing means an eligible agricultural employee housing development that is maintained and operated by a qualified affordable housing organization or by a local or state public housing agency, as defined in Section 17021.8 of the California Government Code.

Residential Care Facilities means facilities which provide twenty-four (24) hour nonmedical care for seven (7) or more persons in need of personal services, protection, supervision, assistance, guidance, or training essential for sustaining the activities of daily living, or for the protection of the individual. This definition includes group homes, residential care facilities for the elderly, adult residential facilities, wards of the juvenile court, and other facilities licensed by the State of California.

Single Room Occupancy (SRO) means housing consisting of single-room dwelling units that is the primary residence of its occupant or occupants and offered monthly or longer.

Supportive Housing means housing that is operated within another residential use classification and with no limit on the length of stay, that is occupied by a target population as defined by Section 50675.14 of the California Health and Safety Code and that is linked to an on-site or off-site service that assists the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community.

Transitional Housing means buildings configured as rental housing developments within another residential use classification, but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six (6) months from the beginning of the assistance.

SECTION II. Revisions to Article 7, “Residential-Agricultural District (R-A)” of Chapter 1 of Title 10
Section 10-1.701 “Primary uses permitted (R-A)” is hereby amended as follows, with additions in red double underline and deletions in strikethrough. Sections, subsections,

paragraphs, and texts not modified by this amendment are not included below and shall remain in full force and effect.
. . .

Section 10-1.701. Primary uses permitted (R-A).

The following primary uses shall be permitted in the Residential-Agricultural District and subject to the Town of Los Altos Hills’ Objective Design Standards User Guide and pursuant to the provisions of this chapter:
(a) Primary dwellings, ;
(b) Agriculture, except those uses identified as prohibited under Section 10-1.706, .; and (c) Emergency shelters, which shall operate under the following standards:
(1) An emergency shelter shall be located on property designated Institutional on the Town of Los Altos Hills Land Use Diagram;
(2) No individual may be denied emergency shelter because of the inability to pay. (3) Required parking shall be based on the number of staff to provide one space per individual but shall not exceed the parking requirements applicable to other residential or institutional uses in the same zone as set forth under Article 6 of this chapter. Parking spaces shall comply with the standards set forth under Section 10-1.601 (a)-(c). (4) The capacity of the shelter shall be limited to that required to meet community needs, as established by the most recent Town-wide homeless enumeration count; (5) The maximum number of beds shall be five (5) and length of stay shall not exceed six (6) months per individual;
(6) Each emergency shelter shall be three hundred (300) feet apart from another emergency shelter;
(7) The shelter shall be operated by a responsible, licensed social service provider with experience in managing or providing social services. The provider shall maintain one qualified on-site supervisor at all times;
(8) Exterior building light fixtures shall be shielded and downward facing, and limited to one (1) exterior light fixture per exterior doorway; and
(9) A management plan shall be submitted to the Town prior to shelter operation. The plan shall include the following content: the provision of site security during operational hours, case management procedures, length of stay, in-take requirements, facility operation standards, parking, hours of operation, services provided, and a monitoring and oversight program. (d) Employee and Farmworker Housing. These uses shall be permitted as set forth in Sections 17021, 17021.6, and 17021.8 of the California Health and Safety Code. (e)Residential care facilities shall be permitted subject to meeting applicable licensing requirements by the State of California.
(f) Transitional and Supportive Housing. Transitional and supportive housing uses shall be subject only to those requirements and restrictions that apply to the primary use classification of the RA district under which they operate.

Section 10-1.702, “Accessory uses and structures permitted (R-A)” is hereby amended as follows, with additions in red double underline and deletions in strikethrough. Sections, subsections, paragraphs, and texts not modified by this amendment are not included below and shall remain in full force and effect.
. . .
(i) Transitional and Supportive Housing. Transitional and supportive housing shall be permitted as defined by the California Health and Safety Code for up to six persons per parcel or lot. No exemptions from other Town ordinances and policies apply to this permitted accessory use. . . .
(h) Residential Care Facility. The use of a dwelling unit or portion thereof licensed by the State of California for 24 hour nonmedical care of up to six persons per parcel or lot, (not including the provider, provider family orstaff) in need of personal service, supervision, protection, or assistance essential for sustaining the activities of daily living. No exemptions from other Town ordinances and policies apply to this permitted accessory use.
(s) Single Room Occupancy (SRO) Uses.
(1) SRO uses shall be permitted on property designated Institutional and/or Public on the Town of Los Altos Hills Land Use Diagram.
(2) The minimum size of a unit shall be one hundred fifty (150) square feet and the maximum size shall be four hundred (400) square feet, which may include bathroom and/or kitchen facilities.
(3) The unit must contain either food preparation or sanitary facilities (and may contain both) if the SRO use consists of new construction, conversion of nonresidential space, or reconstruction. For acquisition or rehabilitation of an existing residential structure or hotel, neither food preparation nor sanitary facilities are required to be in the unit. If the SRO units do not contain sanitary facilities, the building where units are aggregated must contain sanitary facilities that are shared by tenants. If individual kitchen facilities are not provided in the unit, common kitchen facilities shall be provided with at least one kitchen per floor. (4) Each unit shall have a separate closet.
(5) Two hundred square feet of common space shall be provided per floor. (6) Laundry facilities shall be provided in a separate room at the ratio of one washer and dryer for every ten units, with at least one washer and dryer per floor. (7) A cleaning supply room or utility closet with a wash tub with hot and cold running water shall be provided on each floor of the SRO building.
(8) An SRO building with ten or more units shall have an on-site manager.