Agenda packet — Los Gatos City Council, June 21, 2022 (part 6 of 8)

Observations–Los Gatos
• Among the highest quality
walkability, parks, personal
safety, emergency
preparedness, and meals
program of peer group
• Active engagement of
Council in effort to improve
the Town’s senior services
• Unique arrangement:

Services primarily provided
by community education
organization funded by inkind facility use fee-relief
from Town
• Secondarily provided by
volunteers and non-profits
with some funding by Town
grants
• Informal coordination of
services through community
grants with minimal direct
governance
• Among the lowest senior
staffing, participation rate,
information availability,
accountability, and
volunteer coordination
among peer group
• Least attractive and
functional senior activity
center of peer group
• Lowest per senior budget
of peer group on both a
total community basis and
municipal spend basis
• Relatively high cost of
individual events/
programs combined with
moderate cost annual fee
• Low participation rate

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Municipality: Los Gatos, CA
Prepared by: Tom Picraux
Date: 3/21/22
Population: 33,529 Calculated 65+ Population
65+ Population % 21% 6,974
Demographics:

Median Income: $ 155,863
Category Service Notes
Primarily Provided by
(select)
Qualitative
Assessment
Quantitative
Value Units
Per 65+
Population
Environment Safe, accessible and walkable space Extensive downtown walkable areas Local Municipal Gov't. Hi Affordable Transportation RYDE, one VTA bus line, VTA Access Adjacent or Regional Gov't. or AgencyMed Senior Services Facility Adult rec. center (large hall is 2580 sq.ft., 4 rooms downstairs and 2 upstairs with room
size from 245 to 450)
Local Municipal Gov't. Low 4612 sq.ft.

Senior Services Staffing LGS Rec. manages, some town support in 2022
Local Agency within City Low 1 Staff Full-Time
Equiv (FTE)

0.0001
Available Parks, Open Space, and
Public/Social Spaces, close location,
Extensive system with 15 parks including the
well used Oak Meadow city and Vasona
Lake county park and with the Los Gatos
creek trail.

Local Municipal Gov't. Hi Number of
Parks
Personal Safety, crime rate, home call
programs, walking safety
Steets are walkable and safe. Crime rates
are well below national average
Hi 0.66 Violent Crime
rate per
1,000
Emergency and Disaster Preparedness Town provides strong support and multiple wildfire abatement programs
Local Municipal Gov't. Hi
Help in Home Maintenance Provide information on nonprofits in area and services across county
Adjacent or Regional Gov't. or AgencyMed
Purpose, Connection,
and Belonging
Participation and Communication with
Older Adult Community
Low participation with 55Plus, good
participation in service clubs
Local Agency within City Low
Network of Information/Hub service provider groups have their individual volunteer lists
Local Agency within City Low
Service Force and Volunteer Opportunities Four very active service clubs. Volunteer opportunities with service clubs, nuitrition
program and 55Plus Senior Rec Center
Local Agency within City Med
Opportunities for Education, Culture,
Reading, and Arts
Cultural opportunities through Town music
programs & events and Town Library. Some
classes via 55 Plus programs.

Local Municipal Gov't. Med
Participation in Current Affairs, Politics,
and Civic Groups, History club, etc
Available through clubs including History
Club, Democracy Tent, Service Clubs
Local Agency within City Med
Technology proficiency assistance Internet service providers and access through Town library
Local Municipal Gov't. Med
Employment Opportunities for 60+ Limited opportunities Adjacent or Regional Gov't. or AgencyLow Promoting inclusivity in all of our 60+
programs (applies to all services)
Extensive Town efforts to promote inclusivity Local Municipal Gov't. Med Healthy Living/Physical,
Cognitive, and Mental
Health
Nutrition, meals, meals on wheels, etc. Live Oak Nutrition meal service 5 days/week (1200 monthly) and meals on wheels
Adjacent or Regional Gov't. or AgencyHi 60 Clients
served
(average
monthly)

0.86%
Mental and Behavioral Health Programs Two local hospitals with programs Local Agency within City Med Adult Day Care and Caregivers (Dementia
Care)
Live Oak Adult Day Care (5 days/week)
currently closed due to staffing shortages
Adjacent or Regional Gov't. or AgencyMed

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Fitness/Recreational Facilities & Programs
(exercise, meditation, wellness, healthy
living, etc.)
LG Rec. 55 Plus programs currently being
rebuilt with Town grant
Local Municipal Gov't. Med 110 Members or
Participants

1.58%
Affordable Quality Housing - Seniors Some senior housing across financial spectrum: Villa Vasona, the Commons,
Terraces, Belmont Village, etc.

Local Agency within City Med Housing Units 0.00%
Continuing Living Facilities, different
residence models
Cedar Creek Alzheimers Assisted Living,
Terraces, Blossom Hill Gardens assisted living
Local Agency within City Med Housing Units 0.00%
Coordinated Network of
providers
Accountability and Measurement, annual
report on senior services, surveys, etc.,
transparency in plans and results, metrics
Information available from LG Rec 55 Plus
program. LG Community Health and Senior
Services Commission and the Senior Services
Providers Network maintain selected
information on programs.

Local Agency within City Low
Program Governance Split between LG Rec, Town Local Agency within City Med Professional, legal, estate, insurance,
investment, etc.

Adjacent or Regional Gov't. or AgencyMed
Volunteer coordinator No single coordination. LG Rec 55 Plus program, Live Oak Nutrition, Service Clubs,
Library maintain individual volunteer lists
Local Agency within City Low
Affordable membership cost $25 for LG Rec 55 Plus program, free activities are increasing recently but most activities
bundled in series of 5 to 10 classes with costs
of $75 to $200
Local Agency within City Low $ 25.00 Annual fee $
Community Budget for Senior Services
(total)
$285,000 provided by Live Oak Nutrition and
Day Care ajacent agencies.

Adjacent or Regional Gov't. or AgencyLow $ 360,000 Annual budget $
$ 51.62
Municipal Budget for Senior Services Pre-pandemic budget listed. In 2022 $500,000 one time funds from ARPA recovery money
provided.

Local Municipal Gov't. Low $ 85,000 Annual
budget $
$ 12.19
Observations Similarity to Los Gatos
Differences from Los Gatos
Service delivery capability Limited
Other
$ 250,000
Los Gatos has a unique arrangement
whereby a rent abatement is given to LGS
Rec in return for certain services
$ 610,000 Annual
budget $
$ 87.47
Rent abatement $ 335,000 Annual
budget $
$ 48.04

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1. 9
Municipality: Campbell, CA
Prepared by: Dick Konrad
Date: 3/9/22
Population: 42,221 Calculated 65+ Population
65+ Population % 13% 5,489
Demographics: 50.8% White, 21.4% Asian, 8.7% Hispanic,
7,8% Black, 1.3% Other
Median Income: $ 124,525
Category Service Notes
Primarily Provided by
(select)
Qualitative
Assessment
Quantitative
Value Units
Per 65+
Population
Environment Safe, accessible and walkable space Med
Affordable Transportation Use Ryde, VTA Hi
Senior Services Facility Excellent Community Center houses senior activities and recreation. It is a converted
high school and has a pool and outdoor
fitness facilities - separate senior area?
Hi
Senior Services Staffing 3 FTE pre-covid (now 2), .5 Nutrition manager, .3 case manager
Local Municipal Gov't. Hi 3.8 Staff Full-Time
Equiv (FTE)

0.0007
Available Parks, Open Space, and
Public/Social Spaces, close location,
Parks, dog park, Los Gatos Creek Trail Hi 5 Number of
Parks
Personal Safety, crime rate, home call
programs, walking safety
Crime below national average, property
crime is higher - use niche Grade Cplus for
public safety
Med Violent Crime
rate per
1,000
Emergency and Disaster Preparedness Hi
Help in Home Maintenance Refer to Rebuilding Together and Heart of the Valley (don't want liability)
Med
Purpose, Connection,
and Belonging
Participation and Communication with
Older Adult Community
e-Mail newsletter, recreation has published
guide
Med
Network of Information/Hub Senior coordinator is hub Med Service Force and Volunteer Opportunities Website for volunteers Med Opportunities for Education, Culture,
Reading, and Arts
Heritage Theater, 2-Santa Clara County
public libraries, Campbell Historical Museum,
Ainsley House, Book Club, Community
Garden, Winchester Mystery House
Local Municipal Gov't. Med
Participation in Current Affairs, Politics, and
Civic Groups, History club, etc
Historic Preservation Group, Book Club,
Country Women's Clujb, Busy Hands/Caring
Hearts
Hi
Technology proficiency assistance Holiday party, lunar new year party, library access to internet, summer concderts
Med
Employment Opportunities for 60+ None Low
Promoting inclusivity in all of our 60+
programs (applies to all services)
Med
Healthy Living/Physical,
Cognitive, and Mental
Health
Nutrition, meals, meals on wheels, etc. Catered meals for 90 served M-F for $3, take out available, not delivery
Local Municipal Gov't. Med 90 Clients
served
(average
monthly)

1.64%
Mental and Behavioral Health Programs Public awareness healthy workshops, referrals for dementia
Med
Adult Day Care and Caregivers (Dementia
Care)
No day care Low

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1. 10
Fitness/Recreational Facilities & Programs
(exercise, meditation, wellness, healthy
living, etc.)
Membership fee $25 pre-covid, 1100 current
senior programs, fee-based but subsidized.
average price $5-$10. Have pool and
outdoor exercise facilities, offer trips and
other rec programs are at cost. Free card
games and movies
Hi 1100 Members or
Participants

20.04%
Affordable Quality Housing - Seniors Have case manager to help in housing, financial, health and transprotations
Low Housing Units 0.00%
Continuing Living Facilities, different
residence models
Merrill Gardens, Campbell Village, Princess
Lodge, Bed of Roses, Ambrosia Home
Med Housing Units 0.00%
Coordinated Network of
providers
Accountability and Measurement, annual
report on senior services, surveys, etc.,
transparency in plans and results, metrics
Goals are set, measurements tracked on city
website
Local Municipal Gov't. Hi
Program Governance
Professional, legal, estate, insurance,
investment, etc.

Participation in Publicly Available Senior
Programs outside the city
Low
Volunteer coordinator Senior Services Supervisor Med
Affordable membership cost Med $ 25.00 Annual fee $
Community Budget for Senior Services
(total)
$283,000 Expense - $180,000 Revenue $ 498,000 Annual
budget $
$ 90.73
Municipal Budget for Senior Services $ 283,000 Annual
budget $
$ 51.56
Observations Similarity to Los Gatos Some basic services are similar Differences from Los Gatos 1) Some subsidized programs for seniors 2)Have a case manager 3) Probably not as
safe 4) Dedicated facility with pool and
outdoor fitness activity 5) Senior services
funded by city, more staff 6) Senior
coordinator has more tenure in job 7)
Maintained communications with seniors
during covid 8) Volunteers help with senior
programs 9) Senior coordinator provides hub
informaiton
Service delivery capability Excellent
Other It starts with facility, and dedicated staff

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1. 11
Municipality: Cupertino, CA
Prepared by: Kathy Mlnarich
Date: 3/8/22
Population: 60,381 Calculated 65+ Population
65+ Population % 14.7% 8,876
Demographics: Asian67%,white 26% foreign born 53%
Median Income: $ 171,917
Category Service Notes
Primarily Provided by
(select)
Qualitative
Assessment
Quantitative
Value Units
Per 65+
Population
Environment Safe, accessible and walkable space Hi
Affordable Transportation RYDE,city-funded on-demand community shuttle pilot, VTA paratransit
Local Agency within City Med
Senior Services Facility 21251 Stevens Creek Blvd $40M Local Municipal Gov't. Med Senior Services Staffing Case manager, 1.9 FTEs (recently eliminated); recreation coordinator 2.7 FTEs; and
supervisor, 0.25 FTE
Local Municipal Gov't. Med 4.65 Staff Full-Time
Equiv (FTE)

0.0005
Available Parks, Open Space, and
Public/Social Spaces, close location,
Blackberry farm park/golf course, Mcellan
ranch, and numberous local parks
Local Municipal Gov't. Med 24 Number of
Parks
Personal Safety, crime rate, home call
programs, walking safety
Low 3.2 Violent Crime
rate per
1,000
Emergency and Disaster Preparedness Cupertino's office of emergency and West Valley Community Services
Local Agency within City Hi
Help in Home Maintenance Provide information on nonprofits in area and services across county
Low
Purpose, Connection,
and Belonging
Participation and Communication with
Older Adult Community
yes, with various senior home facilities;
newsletter to all of community
Med
Network of Information/Hub yes Local Municipal Gov't. Hi Service Force and Volunteer Opportunities Volunteer opportunities offered with on line signup, paid volunteer coordinator
Local Municipal Gov't. Med
Opportunities for Education, Culture,
Reading, and Arts
Extensive range of educational and cultural
courses; coordinate with strong library system
of programs
Local Municipal Gov't. Hi
Participation in Current Affairs, Politics,
and Civic Groups, History club, etc
US History and Citizenship preparation classes
offered, active TV production engagement
by seniors in club
Local Municipal Gov't. Hi
Technology proficiency assistance Classes for digital devices and cyber security Local Municipal Gov't. Hi Employment Opportunities for 60+ Low
Promoting inclusivity in all of our 60+
programs (applies to all services)
Med
Healthy Living/Physical,
Cognitive, and Mental
Health
Nutrition, meals, meals on wheels, etc. Do not have a Senior Nutrition Program, once a month birthday event
Low 590 Clients
served
(average
monthly)

6.65%
Mental and Behavioral Health Programs yes, services list provided by city Local Agency within City Hi Adult Day Care and Caregivers (Dementia
Care)
yes, Live Oak Adult Day Care program (well
subscribed with waiting list)
Adjacent or Regional Gov't. or AgencyHi
Fitness/Recreational Facilities & Programs
(exercise, meditation, wellness, healthy
living, etc.)
Senior Center offers sports, dancing, and
other classes, use of De Anza for some
activities such as swimming
Local Municipal Gov't. Hi Members or
Participants

0.00%
Affordable Quality Housing - Seniors Below Market Rate (BRM) housing program. wait list for 2022 closed
Med 127 Housing Units 1.43%

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1. 12
Continuing Living Facilities, different
residence models
[email protected] Med 2 Housing Units 0.02%
Coordinated Network of
providers
Accountability and Measurement, annual
report on senior services, surveys, etc.,
transparency in plans and results, metrics
City managed, reporting of budgets, no
annual senior report, Senior Center
revitalizing Advisory Board, no separate city
senior commission
Local Municipal Gov't. Low
Program Governance City managed Local Municipal Gov't. Med Professional, legal, estate, insurance,
investment, etc.

Hi
Participation in Publicly Available Senior
Programs outside the city
Med
Volunteer coordinator yes see website, new volunteer orientation course provided
Local Municipal Gov't. Hi
Affordable membership cost $30, $25 for residents, many clubs free, 8-12 week series of classes $15-68
Local Municipal Gov't. Med 25 Annual fee $
Community Budget for Senior Services
(total)
Live Oak Adult Day Care provides services in
Cupertino
Med 1,439,451 Annual
budget $
$ 162.17
Municipal Budget for Senior Services FY20 total expenditures with $363K from fees, City also provides community funding grants
with $144K provided in 2021-22 for local
festivals
Local Municipal Gov't. Med 1,289,451 Annual
budget $
$ 145.27
Observations Similarity to Los Gatos Major employer does not provide support except for community where benefits
employees (e.g. bike lanes)
Differences from Los Gatos City run
Service delivery capability
Other West Valley Community Services located in
Cupertino independently provides extensive
services to the disadvantaged

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1. 13
Municipality: Los Altos-Los Altos Hills
Prepared by: Dick Konrad
Date: 3/8/22
Population: 30,504 Calculated 65+ Population
65+ Population % 20% 6,101
Demographics: 72% White, 31% Asian, .5% Black, 6.5%
Other
Median Income: $ 235,278
Category Service Notes
Primarily Provided by
(select)
Qualitative
Assessment
Quantitative
Value Units
Per 65+
Population
Environment Safe, accessible and walkable space Yes. Hi Affordable Transportation On the Move. Fully reimbursed +$3 tip (Reimbursement of Uber, Lyft, taxie through
July 2022
Hi
Senior Services Facility Los Altos Community Center - recently completed at a cost of $35M
Local Municipal Gov't. Hi
Senior Services Staffing Local Municipal Gov't. Med 1.75 Staff Full-Time Equiv (FTE)

0.0003
Available Parks, Open Space, and
Public/Social Spaces, close location,
Parks plus redwood forest reserve Hi 10 Number of
Parks
Personal Safety, crime rate, home call
programs, walking safety
Sunshine home call program. 35 safest small
city in America
Hi Violent Crime
rate per
1,000
Emergency and Disaster Preparedness Hi
Help in Home Maintenance Hesitant to do referrals Low
Purpose, Connection,
and Belonging
Participation and Communication with
Older Adult Community
Spotlight is emailed once pre month, and
mailed for $6 charge. Event inclusive during
past year, pre-covid 650 for seniors and
recreation programs. Currently 350 and do
not count seniors independently
Med
Network of Information/Hub Senior coordinator provides hub services Med Service Force and Volunteer Opportunities Town website for volunteers Med Opportunities for Education, Culture,
Reading, and Arts
Foothill College and 2 libraries Hi
Participation in Current Affairs, Politics,
and Civic Groups, History club, etc
Talks by community leaders Volunteer theater
summer concerts
Hi
Technology proficiency assistance Low
Employment Opportunities for 60+ Low
Promoting inclusivity in all of our 60+
programs (applies to all services)
none Med
Healthy Living/Physical,
Cognitive, and Mental
Health
Nutrition, meals, meals on wheels, etc. Prior to Covid lunch at 2 locations for 60 people, other services referred to Community
Service Agency (CSA) in Mt. View
Adjacent or Regional Gov't. or AgencyHi 60 Clients
served
(average
monthly)

0.98%
Mental and Behavioral Health Programs No programs, referrals to CSA (Community Services Mt. View)
Adjacent or Regional Gov't. or AgencyMed
Adult Day Care and Caregivers (Dementia
Care)
Low
Fitness/Recreational Facilities & Programs
(exercise, meditation, wellness, healthy
living, etc.)
Free card games, book club and some
fitness programs. All else fee-based or not
subsidized.

Hi 650 Members or
Participants

10.65%

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1. 14
Affordable Quality Housing - Seniors 32 Rental units and 45 second living units monitored by Alta housing
Med 77 Housing Units 1.26%
Continuing Living Facilities, different
residence models
The Terraces, Bridgepoint, and Hidden Lane
Villa
Med Housing Units 0.00%
Coordinated Network of
providers
Accountability and Measurement, annual
report on senior services, surveys, etc.,
transparency in plans and results, metrics
1 Councilmember on Parks and Rec
Commission
Hi
Program Governance Fund by city
Professional, legal, estate, insurance,
investment, etc.

AARP, SALA
Participation in Publicly Available Senior
Programs outside the city
CSA and VTA Med
Volunteer coordinator Senior coordinator plus use of volunteers Med Affordable membership cost No cost for membership Med $ - Annual fee $ Community Budget for Senior Services
(total)
Rec $141K, Senior $158K, to Covid $392K for
seniors and recreation
$ 343,000 Annual
budget $
$ 56.22
Municipal Budget for Senior Services Local Municipal Gov't. $ 343,000 Annual budget $
$ 56.22
Observations Similarity to Los Gatos A few basic recreational services and an email information brochure Differences from Los Gatos 1) Senior coordinator has a long-tenure in job 2) Many services are referred to outside
agency 3) Funding comes from the city 4) no
membership fee for seniors 5) a new
dedicated community center that cost $35M
6) Many talks by community providers
Service delivery capability
Other

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1. 15
Municipality: Morgan Hill, CA
Prepared by: Tom Picraux
Date: 3/15/22
Population: 45,483 Calculated 65+ Population
65+ Population % 14% 6,368
Demographics: white 73%, hispanic 31%, asian 14%, black 2%, foreign born 18%. bachelors+ degrees
44%, poverty 4% (ISSUE HERE), broadband
92%.

Median Income: $ 124,000
Category Service Notes
Primarily Provided by
(select)
Qualitative
Assessment
Quantitative
Value Units
Per 65+
Population
Environment Safe, accessible and walkable space Sidewalks only in downtown area Med Affordable Transportation Senior door to door trans. for medical, groceries by Sourcewise; senior curb to curb
RYDE program managed by Morgan Hill
w/volunteer drivers, VTA Access senior
paratransit, minimal VTA bus service
Adjacent or Regional Gov't. or AgencyHi
Senior Services Facility Senior Center in Community Center complex, outside of downtown; community, aquatic
and senior center built 2001-06 w/city funds
Regional Development Agency (RDA)
support and some county support.

Endowment from Friends of senior center
Local Municipal Gov't. Hi 4839 sq. ft.

Senior Services Staffing Senior recreation supervisor and some staff help
Local Municipal Gov't. Med 1.75 Staff Full-Time
Equiv (FTE)
Available Parks, Open Space, and
Public/Social Spaces, close location,
~15 parks of various size, Active and Safe
Parks initiative grant (CDC) to revitalize and
increase use of Galvan Park.

Local Municipal Gov't. Med Number of
Parks
Personal Safety, crime rate, home call
programs, walking safety
Crime rates are well below national average Med 1.34 Violent Crime rate per
1,000
Emergency and Disaster Preparedness Emergency Operations Plan, CERT basic training, Ham radio, disaster supply kit &
planning information, emergency call center,
lot of volunteer participation
Local Municipal Gov't. Med
Help in Home Maintenance Provide information from list of known trusted local resources
Med
Purpose, Connection,
and Belonging
Participation and Communication with
Older Adult Community
1900 members/month 55+ (pre-COVID) using
center; total community center members
~13000 (preCOVID) now ~9000 with ~1600
55+. Communication by paper for older
seniors placed in lunch bags, handed out by
drivers, in senior center, by email list to ~2000,
by website each month, by social media, by
posting, and by marketing senior services in
recreation program emails.

Local Municipal Gov't. Med
Network of Information/Hub Info provided by brochures, list of known trusted resources in community, couple
volunteers answer questions
Med

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1. 16
Service Force and Volunteer Opportunities Volunteer intake and coordination for senior center and city managed by part-time senior
center welcome desk.

Med
Opportunities for Education, Culture,
Reading, and Arts
Senior center provides opportunities through
classes
Med
Participation in Current Affairs, Politics,
and Civic Groups, History club, etc
Senior center classes. Med
Technology proficiency assistance Computer lab. Wed. 12:30-3:00 digital device help by volunteers on drop in basis (very
popular)
Med
Employment Opportunities for 60+ Sourcewise county program Low
Promoting inclusivity in all of our 60+
programs (applies to all services)
Appears to be the case. Local Municipal Gov't. Med
Healthy Living/Physical,
Cognitive, and Mental
Health
Nutrition, meals, meals on wheels, etc. Senior lunches M-F (currently boxed) operated by YMCA of Silicon Valley and
supported by county nuitrition program and
Y's ($250,000/yr.), Meals on Wheels
(Sourcewise).

Adjacent or Regional Gov't. or AgencyHi 75 Clients
served
(average
monthly)

1.18%
Mental and Behavioral Health Programs Community Solutions La Casa Del Puente Treatment Center, Psynergy Nueva Vista
psychiatric hospital.

Local Agency within City Low
Adult Day Care and Caregivers (Dementia
Care)
Monthly caregiver support group by
Alzheimer's Association
Adjacent or Regional Gov't. or AgencyLow
Fitness/Recreational Facilities & Programs
(exercise, meditation, wellness, healthy
living, etc.)
Senior center, aquatic center, classes, e.g.,
art, Tai Chi
Local Municipal Gov't. Med 1900 Members or
Participants

29.84%
Affordable Quality Housing - Seniors Various affordable rental apartments Med Housing Units 0.00% Continuing Living Facilities, different
residence models
4 assisted living facilities, 2 retirement
facilities, 2 nursing homes
Med Housing Units 0.00%
Coordinated Network of
providers
Accountability and Measurement, annual
report on senior services, surveys, etc.,
transparency in plans and results, metrics
Detailed monthly tracking of membership,
participation in programs by member type,
meals program, member demographics,
volunteer hours, and performance measures.

Nutrition survey for nutrition program and
program and services survey annually.

Periodic press releases on program impact
with some date on # people served, etc.

Med
Program Governance City governs facility and programs through the Recreation Department.

Med
Professional, legal, estate, insurance,
investment, etc.

Case Management for seniors (Sourcewise),
SALA free legal advice for 60+, AARP tax
prep for low/middle income, Health
Insurance Counseling.

Adjacent or Regional Gov't. or AgencyMed
Participation in Publicly Available Senior
Programs outside the city
Location makes external programs
inconvenient to use
Med

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1. 17
Volunteer coordinator Yes. Senior center welcome desk (part-time) person is gatekeeper, complete form,
maintain list (one-time vs. ongoing where
fingerprint & backgnd check), act as a
resouce for city volunteers in addition. Have
50 volunteers in senior center, also have
meals and wellness calls volunteers. (Had no
organized volunteer effort before 2015).

Local Municipal Gov't. Med
Affordable membership cost No annual fee. Some classes (like art) have fees, like $2/class or $58/session of classes.

Local Municipal Gov't. Hi $ - Annual fee $
Community Budget for Senior Services
(total)
Sources are city ($260K), program fees
($33K), and donations ($48K). Nutrition
program funded by county + YMCA
($186K+$64K). Local donation sources are:
weekly bingo program ($30K/yr,), Friends of
Morgan Hill Senior Center that provides grant
program ($20K/yr.). Friends has established
an endowment ($300,000) with $1.5M goal
that started with $45K gift. Transportation
receives some RYDE support. Sourcewise
supports some Morgan Hill/Gilroy programs.
($590,000 total includes city part of $340,000.)
Med $ 591,000 Annual
budget $
$ 92.81
Municipal Budget for Senior Services Staffing: $232,000. Supplies & Services:
$13,000. Facility Costs: $47,000.
$ 340,000 Annual
budget $
$ 53.40
Observations Similarity to Los Gatos Makes use of services provide by county programs.

Differences from Los Gatos Community, aquatic & senior center with modern facilities and ample parking away
from downtown area. City support and
coordination of senior center and greater
engagement of community in support of
senior services.

Service delivery capability Senior Center Lobby/Reception/hallways 1127 sq ft, Senior Center Coordinator Office
132 sq ft, Activity Rms #1&2 772 sq ft,
Computer room 277 sq ft, SC restrooms 112
sq ft, Senior Center MPR Room 1796 sq ft,
Kitchen 623 sq ft, Teen Center on off hours
1401 sq ft. Total Community Center 56,000 sq
ft.

Other

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1. 18
Municipality: Palo Alto, CA
Prepared by: Kathy Mlinarich
Date: 3/7/22
Population: 68,572 Calculated 65+ Population
65+ Population % 19.40% 13,303
Demographics: 58% White, 33% Asian, AfAm 2% NatAm

0.5% Hispanic 6.4% Pac/Isle .1%
Median Income: $ 158,271
Category Service Notes
Primarily Provided by
(select)
Qualitative
Assessment
Quantitative
Value Units
Per 65+
Population
Environment Safe, accessible and walkable space Walkable Downtown Med Affordable Transportation Avinidas door-to-door OUTREACH Star Local Agency within City Hi Senior Services Facility Avenidas Village, 450 Bryant, non profit. Local Municipal Gov't. Hi Senior Services Staffing Hi Staff Full-Time
Equiv (FTE)

0.0000
Available Parks, Open Space, and
Public/Social Spaces, close location,
4,000 acres of open spaces and parks 162
acres of uban park area, over 20 parks
Hi Number of
Parks
Personal Safety, crime rate, home call
programs, walking safety
2 Local Municipal Gov't. Low Violent Crime
rate per
1,000
Emergency and Disaster Preparedness Office of Emergency Preparedness.

Comprehensive list of services,
communication and advice.

Local Municipal Gov't. Hi
Help in Home Maintenance Home Efficiency Genie. Consulation Local Agency within City Hi Purpose, Connection,
and Belonging
Participation and Communication with
Older Adult Community
Online "public letters to city council" Hi
Network of Information/Hub Avenidas.org Hi
Service Force and Volunteer Opportunities May be accessed through City of Palo Alto website
Hi
Opportunities for Education, Culture,
Reading, and Arts
Avenidas.org Many programs available for
Seniors
Hi
Participation in Current Affairs, Politics,
and Civic Groups, History club, etc
Variety of classes ranging from cooking,
dancing, to Karate and Yoga
Hi
Technology proficiency assistance yes, have internet workshops Hi Employment Opportunities for 60+ Med
Promoting inclusivity in all of our 60+
programs (applies to all services)
Office of Human Services website (all of the
following 'Healthy Living' segments have
extensive information and referral services.

Hi
Healthy Living/Physical,
Cognitive, and Mental
Health
Nutrition, meals, meals on wheels, etc. La Comida, 455 E Charleston. Senior Nutrition Program. Served 2,700 meals in
February,2022.

Hi 4513 Clients
served
(average
monthly)

33.92%
Mental and Behavioral Health Programs Office of Human Services website Hi Adult Day Care and Caregivers (Dementia
Care)
Rose Klein Center Hi
Fitness/Recreational Facilities & Programs
(exercise, meditation, wellness, healthy
living, etc.)
Avenidas, Cubberly & Mitchel Park - Annual
fees are higher but classes are lower and
flexible
Hi Members or
Participants

0.00%
Affordable Quality Housing - Seniors 29 complexes Local Municipal Gov't. Med 1,123 Housing Units 8.44% Continuing Living Facilities, different
residence models
27,983 Hi 7 Housing Units 0.05%

Page 829 ends

1. 19
Coordinated Network of
providers
Accountability and Measurement, annual
report on senior services, surveys, etc.,
transparency in plans and results, metrics
website Hi
Program Governance
Professional, legal, estate, insurance,
investment, etc.

Palo Alto Mediation Program. Provides
assitance for various legal disputes, ranging
from tenant/landlord to small
business/consumer distputes. A large
selection of banks and insurance/investment
firms and trust and estates legal services
Hi
Participation in Publicly Available Senior
Programs outside the city
Stanford University, Menlo College. Med
Volunteer coordinator Hi
Affordable membership cost $60 to $250 per year Med $ 60.00 Annual fee $ Community Budget for Senior Services
(total)
1,664,645 $ 1,664,645 Annual
budget $
$ 125.13
Municipal Budget for Senior Services 1,084,058 $ 1,084,058 Annual budget $
$ 81.49
Observations Similarity to Los Gatos Cubberly Center host the broadest amount of general community activities. From dance
classes and karate to other 1 time large
events.

Differences from Los Gatos Palo Alto has a broad revenue base, including debt issuance and various usage fees and taxes.

Service delivery capability Strong capability to deliver services. However the city's budget appears to be primarily
focused on improvements to infrastructure
and less so to community programs.

Other $20 million dollar , $5 million from city of PA

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1. 20
Municipality: Princeton, NJ
Prepared by: Ellen Schwartz
Date: 3/7/22
Population: 31,000 Calculated 65+ Population
65+ Population % 17% 5,208
Demographics: white 73%, asian 17%, black 6%, hispanic
8%; foreign-born 29%. bachelors+ degr.
81%, poverty 6%, broadband 90%.

Median Income: $ 138,000 per household
Category Service Notes
Primarily Provided by
(select)
Qualitative
Assessment
Quantitative
Value Units
Per 65+
Population
Environment Safe, accessible and walkable space Sidewalks in central part of town Hi Affordable Transportation for seniors only : Ride Provide (subsidized, uses vol. drivers in their own cars), For all ages: Free muni.bus(M-F)in-town route, For all ages: free Univ. busses(parts of town,when univ. in session), for seniors: reduced rates for seniors on public transit to other towns: buses, train
Hi
Senior Services Facility 2or 3- Primary is used most- newly Converted office building (12,000 sq. ft) in wooded setting.(2021 moved in). 2nd is their original building near downtown, still used a litttle & rent space to others. 3rd small building, they don't own, but they have small program there, is near low-cost housing. New building(12,000 sq ft), bought in Dec 2020, moved into in 2021, has $5-million capital campaign, kicked off with 1 donor giving $1.3million.

Local Agency within City Hi
Senior Services Staffing 7 full-time, 8 part-time 50 instructors (at least some are volunteer). https://www.princetonsenior.org/wpcontent/uploads/2021/05/IRS-990-2020.pdf Hi 16 Staff Full-Time
Equiv (FTE)

0.0031
Available Parks, Open Space, and
Public/Social Spaces, close location,
Hi 20 Number of
Parks
Personal Safety, crime rate, home call
programs, walking safety
violent crime 3.2/10,000. property crime 75/10,000.
https://ucr.fbi.gov/crime-in-the-u.s/2019/crime-in-the-u.s.-2019/topicpages/tables/table-8/table-8.xls/view Hi 0.32 Violent Crime
rate per
1,000
Emergency and Disaster Preparedness PSRC responded to Covid well: vaccine finders (118 volunteers helped 687 seniors get appts.), converted to Zoom, increased meals on wheels
Med
Help in Home Maintenance Social worker will refer to someone. PSRC has Homefriends volunteers whose primary role is visiting home-bound but could help with minor things.

Low
Purpose, Connection,
and Belonging
Participation and Communication with
Older Adult Community
PSRC montly newsletter by email (if mail=$10/yr) and excellent website
Hi
Network of Information/Hub maintained by PSRC Local Municipal Gov't. Hi Service Force and Volunteer Opportunities PSRC volunteer coordinator & separate GrandPals coordinator(130 grandpals reading to 300 kindergartners/wk); Evergreen forum is part of psrc that is volunteer-led classes(1300 students); They told me that while many retired professors volunteer, also many instructors are just knowledgeable(&not professors); Corporations do community-service @PSRC -for example 90 Bloomberg
employees volunteered last year
Hi
Opportunities for Education, Culture,
Reading, and Arts
PSRC has classes in this category as part of Evergeen Forum, But beyond PSRC, because of presence of Univ., there is Theater, Concerts, Museum, univ. courses to audit, Also: local choral groups, local orchestrra, local theater group, art org. classes, Adult Ed,adult rec, Y programs
Local Agency within City Hi
Participation in Current Affairs, Politics,
and Civic Groups, History club, etc
Histor.Society, NewComers-interest groups, activitlies
(attracts newly retired, not just newcomers)
Hi
Technology proficiency assistance PSRC's Tech lab(openM-f) had 633 client visits in 2021.Also virtual appts. for tech assistance. In general in town, 2020 census says 90% residents have broadband, New-ish library in center of town
Hi

Page 831 ends

1. 21
Promoting inclusivity in all of our 60+
programs (applies to all services)
Didn't find an official statement, fall fundraising event speaker was Dr. Bernice King (MLK's daughter); hold
some activities in low-cost housing neighborhood
Hi
Healthy Living/Physical,
Cognitive, and Mental
Health
Nutrition, meals, meals on wheels, etc. Various agencies, religious orgs., county government.

Not clear if anything implemented by town itself. Some
specific to seniors. On these 2 charts, show Meals on
wheels and other services. https://www.princetonsenior.org/wpcontent/uploads/2022/01/Princeton-Area-Food-Resources-PDF.pdf https://www.princetonnj.gov/DocumentCenter/View/10
271/Food-Resource-Calendar-2022-PDF?bidId=
Local Agency within City Med Clients
served
(average
monthly)

0.00%
Mental and Behavioral Health Programs PSRC has Social workers. Offer discussion &support groups, total of 997 participants, 926 hours of case-management and counseling. Other agencies that offer services include other non-profits, Y, hospitals.

Hi
Adult Day Care and Caregivers (Dementia
Care)
Adult day care by private businesses in surrounding
towns. PSRC has support groups including a group for
dementia (early stage), a group for caregivers; & a group for children of aging parents
Adjacent or Regional Gov't. or AgencyMed
Fitness/Recreational Facilities & Programs
(exercise, meditation, wellness, healthy
living, etc.)
PSRC, Y, adult ed, adult rec, private gyms, yoga, etc.
(PSRC had 197 virtual fitness participants in 2021),
Value in quatitative column of 1300 represents the total Hi 1300 Members or
Participants

24.96%
Affordable Quality Housing - Seniors 1) Princeton Housing Auth. owns and manages 236 family and senior/disabled apartments within five developments throughout Princeton. 2) Princeton Community Housing provides and
manages 466 affordable rental homes for individuals, families, seniors, and people with disabilities with very low-, low-, and moderate- incomes. More than 1,000 residents - about 3% of the Princeton population - reside in PCH homes at communities...

Low Housing Units 0.00%
Continuing Living Facilities, different
residence models a little in town, much more in adjacent towns Low Housing Units 0.00%
Coordinated Network of
providers
Accountability and Measurement, annual
report on senior services, surveys, etc.,
transparency in plans and results, metrics
PSRC is a Nonprofit. Puts links on its website (for download) to its annual Director's Report, IRS 990, Publishes annual financial statement, If I read it correctly: in 2021, expenses were $778,000, got $143,000(2018) from muni.contract, lots of
donations(&endowment),
https://www.princetonsenior.org/reports/irs-990/ has info on finances
Hi
Program Governance PSRC formed as a non-profit in 1979. Now Board of Directors(17 people) & Advisory Council (15 people).

Person I spoke to does not believe Town picks any for
board or council(will get back to me if she learns
otherwise).

Professional, legal, estate, insurance,
investment, etc.

Participation in Publicly Available Senior
Programs outside the city
While lots of programs avail. outside of Princeton,
Princeton has most comprehensive offerings
Low
Volunteer coordinator 1.5 coordinators Hi 1.5 people
Affordable membership cost 0 -if want them to mail the monthly newsletter(instead of email), it's $10/yr
Hi $ - Annual fee $
Community Budget for Senior Services
(total)
778,000 is what psrc spent in 2018;(2020 70% of spending comes from contrib.,19% from municipal contracts & rentals, 11% from program revenues). Note these values refer to the spending by only the senior center itself. The figures do not include any other services that seniors benefit from like the free bus, health dept., food bank, library programs, adult ed, Y, University, etc.

Hi $ 778,000 Annual
budget $
$ 149.39

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1. 22
Municipal Budget for Senior Services $271,000 is amount town allocated to PSRC for 2021. Although for 2020, they had allocated a similar 253,000, they only actually disbursed 172,000. $67 million is Total town
budget(2021). In 2018 PSRC said town gave them 143,000; 778,000 is what psrc spent in 2018; Town 2021 budget says Contribution to Senior Resource Center= 10,000 in salaries and 260,511.00 in "other expenses". Total is 270,511. Note that all of these dollar amounts refer to the senior center itself. The figures do not include any other services that seniors benefit from like the free bus, health dept., food bank, library programs, adult ed, Y, University, etc.
$ 270,511 Annual
budget $
$ 51.94
Observations Similarity to Los Gatos socioeconomic, strong town identity, downtown important to identity, natural beauty & historic is valued Differences from Los Gatos Princeton is a hub(culturally) for surrounding towns. Has Princeton U.. Some seniors may not be there in the
winters
Service delivery capability 5213 total constituents served in 2021. focus is 55+, but some people under since offers retir. planning&
caregiver support. Programs are open to anyone in the
greater Princeton area, and attracts residents from
surrounding counties About 50% are from out-of-town.

During covid even had people from out of state. Some
of out-of-staters are pople who leave in winter but loved ability to stay connected while away, will likely continue beyond covid. During Covid, everything was on zoom,
but will keep some zoom aspects going forward because
some people prefer it. ~1,300 people attend classes
and > 75 receive assistance weekly. PSRC’s 60
collaborative partners and 375 volunteers help make this all possible.

Other PSRC Uses Zoom extensively, No fee to join. Activities like films, "FYI"=1-time vol. instructor talks, & Ted talks are free. (overall Funding is only 15% from fees).

Classes like art, exercise, writing have fee to "break
even" to cover cost of instructor; Evergreen forum -$95 for 8wks of 2hr classes. Have "senior scholarships" - To apply, participant talks to one of PSRC social workers
about "what comfortable paying". Is Not a formal "provefinancial-need" process. Can take 1-evergreen-class per session this way.Lots of fundraising and donors. 50%
non-res participants. 1300 people attending classes.
375 volunteers for senior center. Funding comes from a
wide range of sources: individual donors (37%),
Municipality of Princeton (19%), program fees (15%),
corporations (10%) and foundations (4%).

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1. 23
Municipality: Saratoga, CA
Prepared by: Tom Picraux
Date: 2/18/22
Population: 31,051 Calculated 65+ Population
65+ Population % 23% 7,142
Demographics: 48% Asian, 48% white, 4% Hispanic
Median Income: $ 191,677 Category Service Notes
Primarily Provided by
(select)
Qualitative
Assessment
Quantitative
Value Units
Per 65+
Population
Environment Safe, accessible and walkable space Walkable downtown Local Municipal Gov't. Med Affordable Transportation RYDE program; VTA Access; VTA limited bus route Adjacent or Regional Gov't. or AgencyHi Senior Services Facility Saratoga Senior Center (managed by SASCC) next to LGS Rec. SASCC brought land in 1971, built community senior center, sold to city in 1987 and established public-private partnership. Facility provided and property managed rent-free by city. Facility remodeled at SASCC expense in ~2019.

Local Agency within City Hi 6286 sq.ft.

Senior Services Staffing Staffing in 4 areas: Senior center; adult day care; RYDE; Outlook monthly. 15 full time & 3 part time staff
Local Agency within City Hi 15 Staff Full-Time
Equiv (FTE)

0.0021
Available Parks, Open Space, and
Public/Social Spaces, close location,
City parks: 14 parks totalling 111 acres (range from <1 to 64 acres) outside venues, Hakone, Montalvo, Mt. Winery
Med 14 Number of
Parks
Personal Safety, crime rate, home call
programs, walking safety Safe walkable area around downtown. Crime rates are well below national average.

Hi 0.61 Violent Crime
rate per
1,000
Emergency and Disaster Preparedness Med
Help in Home Maintenance Provide information on nonprofits operating in area and services across county
Med
Purpose, Connection,
and Belonging
Participation and Communication with
Older Adult Community
Senior Center has 2500 members paying annual fee with ~30% of members/month participating in center programs. Outlook - monthly newspaper for seniors (print & online)
Hi 2500 members
Network of Information/Hub SASCC: Outlook paper, social media postings, senior center staff feedback
Hi
Service Force and Volunteer Opportunities Saratoga city volunteer website. SASCC volunteer opportunities handled by managers of 4 areas: RYDE, Senior Center, Adult Day Care, Outlook newspaper with operations manager providing overall coordination; do not use software.

Local Agency within City Hi
Opportunities for Education, Culture,
Reading, and Arts
SASCC talks by community leaders, West Valley College, Saratoga Civic Theatre, Hakone Gardens, Mountain Winery, Villa Montalvo Local Agency within City Hi
Participation in Current Affairs, Politics,
and Civic Groups, History club, etc
SASCC: traders, quilting, karaoke, mahjong, spanish class, art, memoir writing, Chinese chamber music, book club, Anandvan social group Local Agency within City Med
Technology proficiency assistance SASCC senior center computers, weekly tech drop-in classes Local Agency within City Hi Employment Opportunities for 60+ Saratoga County Library, Sourcewise county program Adjacent or Regional Gov't. or AgencyMed Promoting inclusivity in all of our 60+
programs (applies to all services)
SASCC volunteer program opportunities, Sourcewise and other county programs
Local Agency within City Med
Healthy Living/Physical,
Cognitive, and Mental
Health
Nutrition, meals, meals on wheels, etc. Meals on wheels, Wed. Senior lunch program at Senior Center (PreCovid) Local Agency within City Med Clients
served
(average
monthly)

0.00%
Mental and Behavioral Health Programs Saratoga Adult Care Center, SASCC programs (e.g., meditation) Local Agency within City Med Adult Day Care and Caregivers (Dementia
Care)
Adult day care 5 days/week with meals, fully licensed Local Agency within City Hi Fitness/Recreational Facilities & Programs
(exercise, meditation, wellness, healthy
living, etc.)
1) SASCC: fitness classes, Tai-Chi, ping-pong, yoga, feldenkrais, line dance, bocce ball, dancercise, chair exercise 2) Los Gatos Saratoga Recreation: recreational classes
Local Agency within City Hi 2500 Members or
Participants

35.01%
Affordable Quality Housing - Seniors Limited affordable housing: Saratoga Retirement Community at high end
Low Housing Units 0.00%
Continuing Living Facilities, different
residence models
1) Saratoga Retirement Community: Retirement community (includes assisted living, memory support, skilled nursing & rehabilitation support) 2) Our Lady of Fatima Villa: Assisted living 3) Bon Homie Saratoga:

Assisted living facility facility 4) Corithian Care Center: Assisted living facility
Med Housing Units 0.00%

Page 834 ends

1. 24
Coordinated Network of
providers
Accountability and Measurement, annual
report on senior services, surveys, etc.,
transparency in plans and results, metrics
Provided by SASCC Board of Directors with City leaders via public meetings, Saratoga senior surveys, annual senior report not published Local Agency within City Med
Program Governance City has outsourced senior program governance to nonprofit SASCC which is managed independently with agreement for rent-free use and SASCC maintence of city facilities
Local Agency within City Hi
Professional, legal, estate, insurance,
investment, etc.

County support nonprofits such as Sourcewise and AARP provide services such as SALA for legal, tax prep., HICAP for insurance Adjacent or Regional Gov't. or AgencyMed
Participation in Publicly Available Senior
Programs outside the city
West Valley Community Services. Campbell and other senior centers. Med Volunteer coordinator
Supervisors of 4 SASCC programs: RYDE, Senior Center, Adult Day Care, and Outlook newspaper intake volunteers for their programs, with overall coordination provided by operations manager; software not used.

Hi
Affordable membership cost Annual fee is $30/yr/person with 2500 members; ~30%/month participate in activities. SASCC classes free (80%) or fee is collected by teacher at their discretion (20%)(no contractor issues for SASCC), LGS Rec charges for their classes, SASCC is partnering with West Valley Colleges to provide free classes for seniors (WVC gets to count enrollment and use SASCC facilities)
Hi $ 30.00 Annual fee $
Community Budget for Senior Services
(total)
Revenues are from Foundation support, govt grants/contracts, individual contributions, Outlook ads, fees for external services (35-40%). Recent growth: in 2016 ex.dir. Tylor hired, staff was 7, budget $475K; since then membership revitalized, senior center remodeled at SASCC expense, and budget tripled.

Local Agency within City Hi $ 1,370,000 Annual
budget $
$1,300,000.00
Municipal Budget for Senior Services City provides to help support senior center and adult day care center Local Municipal Gov't. $ 70,000 Annual budget $
$ 70,000.00
Observations Similarity to Los Gatos Size, population, density, transportation Differences from Los Gatos Extent and completeness of senior program handling by outsourced nonprofit. Strong partnership and communication between the operating nonprofit and City
Service delivery capability More mature, efficient, extensive, and less fragmented Local Agency within City Hi Other Community Center facility (10,217 sq. ft.) is used by LGS Rec for providing recreational programs and is next to the Senior Center
Local Agency within City

Page 835 ends

ATTACHMENT 3
Date: June 15, 2022
To: Los Gatos Town Council
From: Los Gatos Senior Services Committee
Subject: Council Approval of Senior Services Roadmap Goals Roadmap Goals

1. Communications & Information Access
Older adults and caregivers need ways to learn information about available services, resources and events in multiple formats. Our survey and workshops point to this area as a critical need to solve problems, participate in community activities and enhance one's quality of life. Our benchmark results for other cities indicated that we can do a much better job. This goal helps residents age in place. Areas addressed would include:
● Availability of resources, activities, programs (clubs, local centers and government -supported services, etc.)
● Presented in the form of an Information Hub (trusted, well-curated content on services availability, activities pointer, events calendar, etc.) - short term.

Includes web, mobile, and social network capabilities. Phone feature with live senior services and volunteer coordinator - longer term ● Navigation to services tools (medical, maintain physical health) ● Promote county mental/behavioral health offerings and services ● Promote food security and options
● Information included from our other goals on transportation, volunteering and housing (stay in home support options, wellness calls, assistive devices)

2. Appealing and Inviting Facility (Renovate or Build)
Renovate or build a community facility including older adult space/services. Agefriendly communities have spaces that are welcoming where residents can come together to engage in social, educational, and enriching activities. Community centers which either include or are dedicated to the needs of older adults provide an important focal point for residents and are found in all our benchmarked cities.

Approaches to building or refurbishing facilities are many, but in every case have required a concerted, long-term effort with deliberate planning. This area would address:
● More welcoming building with adequate multipurpose space than currently exists. A portion of the facility dedicated to meet the needs of older adults ● A funding strategy, fund-raising mechanisms and a 501(c)(3) Friends of Seniors to provide long-term support

Page 836 ends

ATTACHMENT 3
● Coordinated community strategy and support for development of senior facilities
● Intergenerational space for meetings, clubs, community events, recreational, cultural, educational, learning, health education and information services ● Deliberate evaluation of effectiveness and value of investment in existing facilities
● Evaluate multiple use options and how Town assets might be utilized in the creation of a community facility

3. Increase Engagement in Social, Educational and Healthy Living Activities Productive activities outside of work promote quality of life and contribute to active aging. Finding and engaging in social activity and volunteering in activities of interest becomes increasingly challenging as people age. Opportunities to participate and socialize with others, volunteer in meaningful and productive activities and engage in the community in which one lives contribute to a feeling of belonging and personal satisfaction. Efforts to increase engagement and participation would consider:
● Consistent availability, coordination, engagement, and age-friendly accessibility of weekly activities and monthly social events ● Promotion ranging from print to in-person engagement by going to where older adults live (ambassadors, volunteers, etc.)
● Finding ways to subsidize existing programs to expand reach to seniors - medium to short term
● Enlisting local organizations and expertise to help enhance programming ● No or minimal fees except for specific services
● Highlight special events and make them age-friendly
● Funding and expanding essential services for all stages of aging including adult day care and nutrition programs
● Training and classes to enhance marketable and/or new skills ● Personal safety, scam avoidance, legal assistance awareness, etc.

4. Enhance Transportation Options for Older Adults
Livable communities facilitate transportation options for older adults, including auto, bicycling, walking and public transportation. Older adults consider the need for flexible transportation options to be especially important as they age, including:
● Better information distribution on mobility options (e.g., VTA Senior Mobility Guide)
● RYDE awareness and enhancement
● VTA and VTA Access awareness

Page 837 ends

ATTACHMENT 3
● Lyft/Uber supplemented programs
● In-Town shuttle provided by Town
● Last minute rides through volunteer network
● Options for mobility-challenged older adults

5. Volunteer Support and Engagement
Vibrant communities provide opportunities for older members to become volunteers and/or to find needed assistance from volunteers. Promoting and supporting volunteerism allows the community to marshal the expertise of seniors and to increase engagement of older adults for the benefit of the entire community.

This effort would include:
● Develop and coordinate volunteer opportunity exchange (aggregated Town page of opportunities)
● Support connections between service providers, clubs and those interested in volunteering (consider holding volunteer fair)
● Support equitable and inclusive processes to engage senior volunteers ● Consider a ‘Community Unity’ bulletin board approach for two-way volunteering as promoted in the past by former Mayor Wasserman

6. Develop integrated governance, funding, and accountability for senior services
Currently our Town has a distributed model of senior services with minimal central planning, measurement, coordination or accountability for maintaining and advancing services. Benchmarking results show that most cities have a more integrated governance model which can result in greater support, more successful funding initiatives and greater transparency of senior services operations. This area is challenging but could result in increased efficiencies, enhanced senior services and long-term stability of programs. Successful governance models by other cities will be examined to determine the best model for Los Gatos:
● Different models (role of nonprofits, city administration, etc.) ● Coordinated management model (accountability, metrics, oversight, etc.) versus distributed model
● Funding mechanisms to help support older adult programs and services ● Sustainable financial plan, including pro forma budgets for consideration by deciding bodies
● Methods for measurement, accountability and maintaining transparency ● Approaches to maintain Town oversight

7. Senior Housing - Information on Approaches and Options

Page 838 ends

ATTACHMENT 3
Many older residents expressed a desire to continue to live in Los Gatos after retirement and to enjoy their community and friends as they age. Needs change as people age, requiring a knowledge of and advice on a wide range of senior living options. Mixed-use neighborhoods with nearby opportunities to eat, shop, work/volunteer and receive services can enhance the quality of life for seniors. The Town can support senior living by encouraging such developments and providing education, information and opportunities for mutual learning on housing including:
● Types of housing, facilities and options for senior living ● Personal safety devices, scam avoidance, legal assistance awareness, etc. ● Help with transitional housing opportunities (including mental health) ● Promote new urbanism emphasizing walkable spaces where people can live close to places where they can eat, shop, work and receive services

Page 839 ends

PREPARED BY: Monica Renn
Economic Vitality Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Police Chief, and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/21/2022
ITEM NO: 21
DATE: June 13, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive a Report on the June, 16, 2022 Promenade Event and Provide Additional Direction to Staff on Event Format or Other Provisions if Needed.

RECOMMENDATION:

Receive a report on the June 16, 2022 Promenade Event and provide additional direction to staff on event format or other provisions if needed.

REMARKS:

Following the conclusion of the June 16, 2022 Promenade Event, coordinated by the Chamber of Commerce, Town staff will seek Chamber input, and provide a post-event report for the Town Council to discuss and provide additional direction, as necessary. This information will be provided as an Addendum on Monday, June 20, 2022, or Desk Item on Tuesday, June 21, 2022.

Page 840 ends

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/20/2022
ITEM NO: 21

DESK ITEM
DATE: June 21, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive a Report on the June 16, 2022 Promenade Event and Provide Additional Direction to Staff on Event Format or Other Provisions if Needed.

RECOMMENDATION:

Receive a report on the June 16, 2022 Promenade Event and provide additional direction to staff on event format or other provisions if needed.

BACKGROUND:

On May 4, 2021, the Town Council allocated $80,000 of America Rescue Plan Act (ARPA) funds to the Chamber of Commerce to host up to seven Summer Promenade events in Downtown Los Gatos to stimulate the downtown economy. After the first week of the 2021 event series, the Chamber requested the ability to have a “blanket” Alcohol Beverage Control (ABC) permit that allowed the community to essentially have open containers of alcohol at the event as a way to encourage event participants to patronize local businesses and take advantage of the ability for the establishments to sell the “to-go” style beer, wine, and cocktails.

As the event evolved over the weeks, Town and Chamber staff worked closely to make modifications and adjust the format as the summer progressed. The number of event guests bringing beverages into the event increased as evidenced by the community feedback to staff.

Staff also received complaints about the consumption of alcohol by guests that were not properly identified as being over 21 years.

At its February 15, 2022 meeting, the Town Council allocated an additional $120,000 of ARPA funds to the Chamber of Commerce to fund a 2022 Summer Promenade event series. During this discussion, the Town Council asked staff about the amount of staff resources required to

Page 841 ends

PAGE 2 OF 4
SUBJECT: Summer Promenades
DATE: June 21, 2022
BACKGROUND (continued):
create an environment where multiple events, including the Promenades, Music in the Park, and Jazz on the Plazz, can take place safely and successfully for all stakeholders.

Following this meeting, staff worked internally to understand and allocate available resources for the upcoming summer events, including the Summer Promenade. Based on resources, observations from the 2021 series, and Town Council direction, staff provided parameters to the Chamber of Commerce that the event should include more controlled sales and consumption of alcohol and thus added provisions that included up to three beer gardens rather than an open alcohol model observed in 2021.

The Chamber of Commerce strongly believed that an open format of alcohol sales and consumption was more conducive to a promenade setting for the event and thus requested a public discussion on the provisions. During the Town Council discussion June 7, 2022, the Chamber of Commerce staff and representatives provided a series of parameters that they believed could help manage an open format for alcohol sales and consumption, and thus, the Town Council unanimously approved the following:

Motion by Council Member Sayoc to eliminate beer gardens and required the Chamber to: 1) provide alcohol dispensing points where identification will be checked and wristbands will be issued by paid staff; 2) alcohol will be provided via wristband by paid staff, one alcoholic drink per wristband and no more than one drink will be issued at a time; 3) Chamber staff will monitor the ingresses and egresses; 4) rules of conduct signage to be provided to staff to allow Police Department staff to review for additional suggestions and be displayed prominently during the event; 5) streetside alcohol sales end at 8 p.m. an hour before close of the event; 6) bring the item back to Council on June 21 for debriefing; 7) the Town Manager to provide updates to Council during the month of July; and 8) authorize the Town Manager and Police Chief to take any necessary precautions in the interest of public safety.

Seconded by Vice Mayor Ristow.

DISCUSSION:

Following the meeting on June 7, 2022, staff worked with the Chamber of Commerce to apply the direction to a modified Conditional Letter of Approval. By the following week, the Chamber of Commerce had met the provisions of the Special Event Permit and were issued a Final Event Permit.

On Thursday, June 16, 2022 the Chamber contacted Town staff with concerns about permit compliance. Staff worked through the concerns with the Chamber and both parties agreed that the conditions could be met and minor changes to clarify language could be made to the Permit following a post-event discussion.

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PAGE 3 OF 4
SUBJECT: Summer Promenades
DATE: June 21, 2022
DISCUSSION (continued):

Overall, the first Promenade event was well attended and had a positive atmosphere with a few areas that could be given additional attention in the upcoming weeks to create a safer and more compliant environment. From the perspective of staff, event preparedness, structure, and permit provisions are developed with the goal of public safety and prevention, rather than taking a “wait and see” approach and reacting by adding new provisions to the Special Event Permit.

Town and Chamber staff met on Monday, June 20, 2022 to debrief the event and appeared to be on the same page with items that can be more closely addressed to create a smoother event.

On a high-level, the areas of discussion include:
 Traffic Closure- The traffic control company arrived unprepared and operated from an incorrect or missing traffic control plan. With the assistance of the Police Department and Parks and Public Works staff, the closure set up was corrected. As a result, the closure was delayed. Chamber staff has addressed this concern with their vendor and worked with them to ensure the deficiencies are addressed in future weeks. Town staff will continue to support the closure with the implementation of the Town’s anti-vehicle barriers.
 Staffing- Chamber staff connected with Town staff immediately following the event and shared their concerns with their event staffing and the difficulty to find and hire event staff to manage the ingress and egress points. These event staff are critical to monitor the flow of attendees with alcohol and guide guests who are visibly out of compliance with alcohol guidelines. Thus, the Chamber requested to utilize an outside security staffing agency to provide paid staff for these locations. Town staff agrees this is an acceptable solution and requested that the hired staff members wear “Promenade Staff” shirts to clearly identify them as event staff members without any equipment, hats, or clothing that might convey a security role. The Chamber also agreed to give them a briefing on the event layout, State Alcoholic Beverage Control (ABC) provisions, and other basic event information that could help them educate guests and maintain the provisions of the Special Event Permit.

For example, there was at least one instance of an underage minor in possession of a wristband and alcoholic beverages. Police Officers observed the minor with alcohol and made contact with the individual, provided education, and corrected the situation. It is not clear exactly how the wristband was obtained. Town staff requested that the Chamber of Commerce provide ABC’s instructions and tips for checking guest age to the event staff responsible for checking identification.

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PAGE 4 OF 4
SUBJECT: Summer Promenades
DATE: June 21, 2022
DISCUSSION (continued):
 Signage- The required signage for “no alcohol beyond this point” and “no outside alcohol” was difficult to locate and read given the equipment the Chamber had available for mounting the signs. Staff recommends that the Chamber obtain additional A-frame or Type 3 barricades for posting these signs to make them more visible for event guests. Town staff has offered to provide the signage to affix to the barricades that may be reused each week moving forward.
 Conditions of Approval- Attachment 1 provides the updated Conditional Letter of Approval that provides the language for the final Special Event Permit. Modifications to the original Permit, provided to the Town Council on June 7, 2022, were made following that Town Council’s discussion, then minor adjustments were again made following the June 16, 2022 event, as a result of collaboration between the Chamber of Commerce and Town.

CONCLUSION:

With ongoing check-ins, pre-event briefings, and post event debriefs, staff will continue to collaborate with the Chamber and make modifications as needed to the Permit to continue to support the safety and success of the event. Staff will provide updates to the Town Council in July as requested. Staff looks forward to Council discussion and any additional direction to facilitate successful Promenades.

COORDINATION:

This staff report was prepared with collaboration between the Town Manager’s Office, Parks and Public Works, and the Police Department.

FISCAL IMPACT:

There are no direct fiscal impacts related to the recommendation of this report.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachment Received with this Desk Item:

1. Special Event Permit, Conditional Letter of Approval, updated June 20, 2022

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Town Manager’s Office • 110 E. Main St., Los Gatos, CA 95030 408.354.6832 • www.losgatosca.gov • www.facebook.com/losgatosca ATTACHMENT 1

TOWN OF LOS GATOS

SUMMER PROMENADES

LETTER OF CONDITIONAL APPROVAL
Name of Event: Summer Promenades
Date(s) of Event: June 16, 23, July 7, 14, 21, 28, August 4, 2022 Time(s) of Event: 5:00 p.m. – 9:00 p.m.

Location(s) of Event: N. Santa Cruz Ave between W. Main St. and Bachman Ave Permittee: Los Gatos Chamber of Commerce
Event Contact: Randi Chen
Event Contact Phone: 408-858-1803
This Conditional Letter of Approval has been modified as of June 20, 2022 to reflect minor changes from the previously issued permit on June 16, 2022.

This is a letter of conditional approval for the above specified event, issued to the Permittee and/or the organization the Permittee represents, named above by the Town of Los Gatos based on the information the Permittee has disclosed in the special event application and any written or verbal conversations with Town staff regarding the event.

The purpose of the Conditional Letter of Approval is to grant the Permittee the approval to move forward with the planning and logistics of the event under the conditions stated in this document. The Town will issue the Special Event Permit to the Permittee after all conditions set forth in this Conditional Letter of Approval have been addressed to the satisfaction of the Town Manager or his/her designee. Given the non-Town agencies that may need to work with the Permittee on specific conditions, the issuance of the final Special Event Permit may not occur until just prior to the event. If a Permittee needs additional clarification for its work with vendors, non-Town agencies, etc., please contact the Special Events Staff for assistance. Once the Special Even Permit is issued, the Permittee will be authorized to execute the event.

The conditions included in this document may include but are not limited to; requirements with completion timelines concerning the time, place, scope of the event, required permits from other government agencies, vendor provisions, payment of applicable fees and deposits, and other provisions including but not limited to conditions to protect the safety of persons and property, provide for adequate traffic control, and regulate the sale and service of food and/or alcohol. Specific details regarding each of these conditions can be found in this letter.

ADDITIONAL CONDITIONS MAY ARISE AFTER THE ISSUING OF THIS LETTER OF APPROVAL AS THE

PLANNING OF THE EVENT PROGRESSES, THESE CONDITIONS WILL BE COMMUNICATED TO THE PERMITTEE AND ADDED TO THE FINAL SPECIAL EVENT PERMIT.

The Permittee must abide by all applicable conditions listed below. Failure to comply with all conditions, or any violation of law prior to the event will result in the denial of the Special Event Permit and therefore immediate cancellation of the event and possibly denial of future events, fines, and/or criminal prosecution. If during the planning of the approved event, the scope, intensity, location, type, or size of event deviates significantly from the description provided on the special event application this Conditional Letter of Approval will no longer be valid and the Permittee will need to submit a new application to reflect

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TOWN OF LOS GATOS

SUMMER PROMENADES

LETTER OF CONDITIONAL APPROVAL
the deviation. The Town Manager, Chief of Police and/or the Director of Parks & Public Works and/or Streets & Parks Superintendent has the right at any time to revoke permission for an event and no rebates or refunds of fees will be made because of such termination. The Permittee or the organization they represent must pay all costs associated with a permitted event.

I. STANDARD CONDITIONAL REQUIREMENTS:
1) Permittee shall obtain all required permits and submit copies of these permits to the Town Events Specialist prior to the event which may include but are not limited to; ABC permit, Banner permit, Fire permit(s), Parks Use permit and Environmental Health permit(s). A copy of each permit must be kept on file at the event.
2) Permittee or designated person shall be on-site at the event at all times to ensure compliance with the special event permit conditions.
3) Permittee shall ensure cleanliness of the event and surrounding area throughout the event by providing adequate trash and recycling receptacles and must submit a clean-up plan for large scale events. The Permittee understands that he/she or their organization may be billed for cleanup costs incurred by the Town if cleanup is not performed adequately, and/or future applications for a Special Event Permit and/or Special Use Permit may be denied.
4) Permittee shall provide a safe environment for event attendees as determined by the Santa Clara County Fire Department, Department of Environmental Health and Safety and/or the Los Gatos Monte Sereno (LGMS) Police Department.
5) Permittee shall submit a hold harmless agreement which shall indemnify and hold harmless the Town of Los Gatos for any and all claims regarding the above-named event. The Permittee agrees to protect, defend, and hold harmless the Town of Los Gatos, its elective or appointed boards, officers, agents, and employees from any and all claims, liabilities, expenses or damages of any nature, including attorneys' fees, for injury or death of any person, or damage to property. This applies to the Permittee, Permittee’s agents, officers, or employees, subcontractors, or independent contractors hired by Permittee. This hold harmless agreement shall apply to all liability, regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Permittee. The person signing this Special Event Permit declares that he/she has the authority to bind the Permittee, and that Permittee is bound by all terms of this Special Event Permit. In the event that the signatory lacks such duly granted authority, said undersigned signatory personally assumes all liability for fees, costs and damages. The Permittee further agrees to repay the Town for any and all incurred costs; damage and clean-up to parks, streets, facilities, buildings or other property owned by the Town which results from the above-named event. The Permittee agrees to comply with these permit issuance conditions and any other requirements of the Town of Los Gatos.
6) Permittee shall obtain Town approved insurance. Permittee shall maintain comprehensive general liability insurance (including coverage for damages to rented property) with policy limits of at least $1,000,000 per occurrence. For general liability insurance policies, Permittee agrees to the following terms and shall provide Town with a separate endorsement which states that the policy contains the following language:
a) The Town, its elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers are named as additional insureds; and,

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TOWN OF LOS GATOS

SUMMER PROMENADES

LETTER OF CONDITIONAL APPROVAL
b) The insurer waives the right of subrogation (the right of recovery against others) against Town elected or appointed officials, boards, agencies, officers, agents, employees, and volunteers; and,
c) The insurance shall be primary non-contributing. If alcohol will be served or sold, host liquor liability must be stated within the insurance policy. Permittee shall maintain Workers’ Compensation Insurance, as required by law. Permittee shall maintain Automobile Insurance, as required by law. No policy shall be canceled or materially changed except after thirty (30) days' notice by the insurer to Town.

II. SPECIFIC CONDITIONS RELATED TO THIS EVENT
1) ARPA GRANT FUNDS
a) On Tuesday, February 15, 2022, Town Council unanimously passed a motion to allocate up to $120,000 of ARPA funds to the Los Gatos Chamber of Commerce (the Permittee) to produce a summer promenade series with the possibility of fewer events if there are limited Town staff resources and with the possibility of sponsorships. The payment terms and requirements of the grant are outlined in the attached agreement. All Town fees mentioned in this letter will be deducted from the approved grant funds following the payment and reimbursement terms outlined in the agreement.
2) PUBLIC NOTICE
a) Permittee shall notify all residents and businesses in the list provided by the Town which includes the immediate areas and the Almond Grove area, at least two weeks prior to the event in the form of a letter, flyer or other form of documentation. A copy of this notification must be submitted to the Town for approval prior to its distribution. b) The Permittee shall obtain a banner permit(s) from the Town for each temporary banner placed in Town prior to placing the banner(s). The banner(s) shall only be placed in the approved locations. Per the Los Gatos Municipal Code, no more than three banners may be used per event.
3) EVENT AREA USE PARAMETERS
a) The Permittee shall have use of the following areas under the following use times, for the purposes of this permit:
i) N. Santa Cruz Ave between Main St. and Bachman Ave.
(1) Event dates and hours are permitted for Thursday, June 16, 23, July 7, 14, 21, 28, August 4 from 5:00 p.m. – 9:00 p.m.
(2) Event set-up may begin at 2:00 p.m. and event tear-down must conclude before 10:30 p.m. on the same day. The street re-opening time of 10:30 p.m. is designed to provide the Permittee with a maximum of 1.5 hours to tear-down event equipment. However, the Permittee shall make every effort to clear crowds and remove pedestrians off the street at the immediate conclusion of event programming at 9:00 p.m. (3) There shall be no programming on the N. Santa Cruz Ave within 50 feet from the main closure points of Main St. and Bachman Ave.

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TOWN OF LOS GATOS

SUMMER PROMENADES

LETTER OF CONDITIONAL APPROVAL
(4) Band equipment may be placed on the street spanning the roadway, as shown on the event site map, per the approval of the Santa Clara County Fire Department (SCCFD). No stages or other similar structures may be used for the band unless they provide a 20’ clearance for emergency vehicles to enter and exit the roadways, per SCCFD’s requirements.
ii) Town Plaza Park
(1) The Permittee may use Town Plaza Park on the permitted event dates for no more than two consecutive hours, solely for the purposes of “yoga in the park.” No additional event programming outside of that is permitted unless otherwise approved by the Town ahead of time.
(2) Alcohol sales or service are prohibited in Town Plaza Park. (3) The Permittee is required to pay the $55 parks use fee as noted in the 2021/2022 Town of Los Gatos comprehensive fee schedule for the hours of use. iii) Municipal Lot 4 & Street Parking
(1) The Permittee may use four spaces in municipal parking lot 4 for the location of portable restrooms with an approved encroachment permit from the Town of Los Gatos. (2) The Permittee may have use of six public street parking spaces located on N. Santa Cruz Ave. and Bachman Ave. from 1:00 p.m. – 10:30 p.m. for sound technician vehicles.
b) The Permittee shall be allowed to use amplified sound in the form of music until 9:00 p.m. but must comply with all noise level ordinances. However, if the Town receives complaints from the public the ending time of the music may be adjusted during the event series to address these complaints.
c) No event equipment may be placed on any open, public roadways during set-up without prior consent from the Town.
d) Permittee must remove all event equipment from the entire event area immediately following the event to allow for N. Santa Cruz Ave to re-open to through traffic no later than 10:30 p.m. on the evening of the event(s).
e) If any portion of the event is outside of the permitted areas or times it may result in termination of the event in those non-permitted areas or the entire event. 4) TRAFFIC CONTROL
a) The Permittee may commence the road closure of N. Santa Cruz no earlier than 2:00 p.m. and must re-open the street no later than 10:30 p.m. on each event date. b) The Town shall provide the Permittee with a traffic control plan as part of the N. Santa Cruz closure packet. The Permittee shall be responsible for obtaining and paying uniform traffic control devices and a traffic control vendor to implement the closure and re-opening according to the provided traffic control plan.
c) Town staff shall utilize anti-vehicle barricades at the road closure points of Main St. and North Santa Cruz Ave and Bachman Ave. and North Santa Cruz Ave. The barricades will be managed and deployed by the Los Gatos Parks and Public Works Department and LGMSPD. The Permittee shall be required to pay for all Town staff time required for the use of the barricades. d) Roads are to remain open and unobstructed until the scheduled closure time, and only after

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TOWN OF LOS GATOS

SUMMER PROMENADES

LETTER OF CONDITIONAL APPROVAL
traffic control devices are in place and the road is safely closed to through traffic. e) Permittee shall be responsible for posting all approved, Police-issued, “No Parking Signs,” in all roadways and parking lots that will be closed to the public for the event no later than 72 hours prior to the use of the space. The Permittee must use “blue tape” or other non-permanent adhesive material or tie so as not to damage or leave adhesive residue upon the fixture the sign is attached. Permittee shall remove all signs within two days after the event. f) The Permittee shall be required to utilize two electronic message boards that should be in place a week before the event to notify the public of the upcoming road closure(s). The Town may supply these to the Permittee if the Town-owned boards are available at the time of the event.

The Permittee may be required to reimburse the Town for staff time required to place the message boards.
g) Permittee shall staff all roadway closures and allow access to emergency personnel when necessary. Drive through private property egress areas shall be blocked to prevent vehicular access to N. Santa Cruz. Private property egress areas must be monitored by event staff. h) S. Santa Cruz Ave. and W. Main St. shall remain open and unobstructed at all times. i) University Ave. and adjacent side streets shall remain open and accessible to and from all municipal parking lots.
j) All private property driveways/parking lots not leading to N. Santa Cruz Ave. shall remain open and unobstructed.
k) Permittee shall provide staff or volunteers to monitor all points of ingress and egress, throughout the event to ensure that all barricades and signage remain in place and un-altered. 5) SAFETY & SECURITY
a) The Permittee will be required to utilize two Los Gatos-Monte Sereno Police officers for each event between the hours of 5:30 p.m. and 10:30 p.m.
b) LGMSPD may also require the use of a Parking Control Officer while the road closure is occurring to ensure pedestrian and vehicle clearance for a safe and controlled closure. The Permittee shall be required to pay for all LGMSPD personnel charges.
c) The Permittee must obtain a special event permit from the Santa Clara County Fire Department and comply with all Santa Clara County Fire Department’s outdoor festivals and carnivals, and any other relevant standards and specifications.
d) Fire hydrants shall remain accessible with adequate clearance from any vehicles, structures, tents, or other barricades.
e) The Permittee shall have volunteers or other staff onsite for the duration of the event to help maintain crowd control and an orderly program.
6) FOOD & ALCOHOL
a) Permittee is responsible for securing an ABC permit for the sales and service of alcohol, and for upholding the provisions set forth by ABC.
b) Alcohol must be purchased and consumed within the event closure area only, in compliance with ABC rules and regulations.
c) ABC permits must not be mingled between the event and businesses’ onsite licenses.

Businesses must adhere to the ABC provisions as they apply to their own establishment and “togo” beverages purchased within restaurants may not be consumed within the event.

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TOWN OF LOS GATOS

SUMMER PROMENADES

LETTER OF CONDITIONAL APPROVAL
d) Alcohol may only be dispensed to individual 21 years of age or older with a valid wristband. e) Alcohol must only be dispensed within approved designated dispensing locations associated with the approved ABC permit.
f) All alcohol sales and service must cease at 8:00 p.m. g) Permittee must utilize paid staff to monitor ingress and egress points between the event closure area and non-event closure areas, consistent with the map provided. h) Permittee must provide an updated map to the Town no later than Tuesday, June 14, 2022, outlining the following:
i) Event perimeter with ingress and egress locations clearly marked that will be staffed ii) Dispensing locations for alcoholic beverages and number of paid staff responsible for each location
iii) Identification check-point locations consistent with ABC requirements, wristband placement, and token exchange location; and, number of paid staff monitoring this function iv) Placement of various signage noting the following:
(1) No outside alcohol permitted at the event, at ingress locations (2) No alcohol beyond this point, at egress locations
(3) Alcohol available for purchase with drink tokens only (4) Wristband required for purchase of alcohol
(5) Limit one alcoholic beverage per wristband, per purchase i) The color and/or design of the wristband must be different at each weekly event. j) Permittee and/or dispensing businesses must provide a designated beverage cup(s) that the alcohol is served in for each event. The cup(s) may change from week to week however an example or photo of the cup must be provided to the Town in advance of the event. k) All alcoholic beverages must be served in a cup.
l) Designated cups must be branded or identified with the dispensing business’ information, or with the Promenade logo.
m) No glass cups or beverage containers are permitted within the event. n) No later than the Wednesday morning, prior to each Promenade event, Permittee must provide the Town with the following information for that week’s event:
i) Updated event map if elements have changed from the prior submission ii) Photo of designated wristband
iii) Photo of designated cup(s)
iv) List and location(s) of participating businesses or other entities dispensing the alcohol v) Number of paid staff and their locations, if it varies from information previously submitted o) Permittee’s paid staff must wear an identifiable item such as a shirt or vest that clearly indicates they are event staff with the Promenade. An image of this must be provided to the Town prior to the first event on June 16.
p) The Permittee shall include educational language on their event marketing materials and website explaining the rules of alcohol consumption at the event. q) It is recommended that the Permittee works with the participating businesses before the event to explain the conditions of alcohol sales, service, and consumption at the event. r) The Permittee shall be responsible for training staff and volunteers prior to the event to identify individuals who have consumed an excessive amount of alcohol and may be a danger to themselves or other individuals and shall not allow that individual to purchase any additional

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TOWN OF LOS GATOS

SUMMER PROMENADES

LETTER OF CONDITIONAL APPROVAL
alcohol. The Permittee shall escalate to the appropriate authorities if the situation deems necessary, to ensure the safety of the public and the Permittee. 7) HEALTH & CLEANINESS
a) This Conditional Letter of Approval is being issued under the assumption that the event named in this letter will be permitted to occur on the requested event date under State and County orders. In accordance with Town Code Section Sec. 14.100.045. the Town reserves the right to change or revoke this conditional letter, and thus cancel the event, if new federal or local guidelines or requirements are issued that would prohibit this event, or environmental factors at the time of the event persist or worsen from the current condition and the event would jeopardize the health and safety of the public.
b) The Permittee must comply with all COVID-19 Federal, State, and County Public Health Orders, requirements, restrictions, and guidance pertaining to the event program and activities. Failure to comply with these measures may result in fines, and/or immediate cancelation of the event(s) from State, County or Town officials. Information on current COVID-19 requirements can be found at www.covid19.sccgov.org/home and www.covid19.ca.gov/safer-economy. c) The Permittee shall clean the entire event space immediately following the event. A pre and post event evaluation of the entire event space will be performed to determine any necessary clean-up or repair costs. If any charges are incurred a report and invoice will be provided to the Permittee by the Town within 30 days of the event. d) The Permittee shall be responsible for providing additional trash and recycling receptacles to accommodate for the additional traffic. They must also be responsible for emptying all trash and recycle bins, including Town bins, in the event area and placing them into a dumpster provided by the Permittee.
e) The Permittee must ensure the number of toilets is adequate for the number of anticipated attendees and meets all Department of Environmental Health standards to ensure no public urination or the unauthorized use of adjacent private property restrooms without prior approval from the property owner. If using private restrooms, the Permittee must submit this in writing in their plan and indicate that they have received approval from the business owner to direct attendees to use their private restrooms.
_____________________________________________________________________________________ Permittee Date
_____________________________________________________________________________________ Laurel Prevetti, Town Manager Date

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PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager and Finance Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/21/2022
ITEM NO: 22
DATE: June 16, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive the Town of Los Gatos Business License Analysis and Ordinance Review, Direct Staff to Continue Research and Public Outreach, and Return to Town Council on August 2, 2022 with Proposed Ballot Measure Language to Modernize and Create a More Equitable Business License Tax Structure RECOMMENDATION:

Receive the Town of Los Gatos Business License Analysis and Ordinance Review, direct staff to continue research and public outreach, and return to Town Council on August 2, 2022 with proposed ballot measure language to modernize and create a more equitable business license tax structure.

BACKGROUND:

On September 13, 2021, the Town Finance Commission reviewed the Town’s Business License Tax Program and recommended that the Town Council authorize the Town Manager to issue a Request for Proposal (RFP) for consultant services to evaluate and recommend modernization options for the Town’s Business License Tax Program. On October 19, 2021, the Town Council received the Finance Commission recommendation (Attachment 1) and directed staff to engage a consultant to review the Town's 1991 Business Tax Ordinance and recommend options for updating the Ordinance.

On December 17, 2021, the Town issued an RFP for Business License Tax consulting services.

The Town received a single response from HdL Companies (HdL) by the January 26, 2022, submission deadline. HdL was selected given their significant experience in business license review and analysis including having performed dozens of tax study and modernization programs in California.

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PAGE 2 OF 6
SUBJECT: Business License Modernization
DATE: June 16, 2022
BACKGROUND (continued):

HdL submitted their Business License Analysis and Ordinance Review (Report) to the Town on June 8, 2022 (Attachment 2). On June 13, 2022, the Finance Commission discussed the HdL report and voted unanimously to move forward to continue research and public outreach on business license tax modernization. The Commission requested a special meeting in July if Council voted to pursue a potential ballot measure.

DISCUSSION:

Consultant Study
The Report includes an executive summary, analysis of the Town’s current business tax structure and comparative jurisdictions, options for modifying the Town's business tax rates and classifications, and appendix with administrative recommendations to simplify other elements of the Town’s Ordinance.

Following is a summary of the major findings and recommendation of the report:

Having not been updated in over 30 years and currently utilizing a blend of flat fees and decreasing gross-receipts tax rates, the Town’s existing structure is regressive in nature. For example, a general retail business grossing $50,000 a year (the small business in the chart below) would pay $75.00, which is an effective tax rate of 0.15%. But a large business, grossing $1 million in a year, will pay $600 or 0.06%--less than half the effective tax rate of the small business. This is illustrated in Chart 4 of the report.

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PAGE 3 OF 6
SUBJECT: Business License Modernization
DATE: June 16, 2022
DISCUSSION (continued):

Compared to other jurisdictions, the Town’s total business tax revenue is relatively strong (Table 2 of the report) however as illustrated above the composition of those revenues is currently not equitable. Given the results of the analysis, HdL has recommended that the Town move to a single-rate, gross-receipts model (Model 2 in the report). Many California cities use some form of gross receipts tax structure and a standard rate multiplier to determine the tax amount owed.

The "single rate" method of taxing on gross receipts provides an even distribution of the effective tax rate because all businesses subject to the tax will pay the same rate. The benefits of gross receipts-based taxes are the equity of their effective tax rate, ease of calculation, and potential for capturing revenue from growth in the economy. Under this method, no cap is put in place, and therefore most of the revenues are received from the highest-grossing businesses.

While the model does expand revenue, it does so by helping to decrease the effective tax rate on smaller businesses while asking larger businesses to pay their fair share. The model also lowers the annual base rate to a uniform $25 (first $25,000 gross receipts), to provide some additional tax relief for smaller businesses. The following chart (Chart 9 in the report) illustrates the redistribution of effective tax rates among small, medium, and large business’s utilizing two different single-rate scenarios.

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PAGE 4 OF 6
SUBJECT: Business License Modernization
DATE: June 16, 2022
DISCUSSION (continued):

Table 8 from the report (below) illustrates the estimated revenues from implementing a gross receipts tax (Model 2) with two single-rate options, $1.25 per thousand and $1.50 per thousand. The model uses estimated gross receipts based on the business classification. It should be noted that in estimating the Total Gross Receipts, HdL exclude a significant outlier that would skew the models.

As illustrated above both single rate options are estimated to produce slightly more revenue than currently collected (FY 2021/22 $1.3 million), excluding the outlier, but in a more equitable distribution.

Ballot Measures
A ballot measure to modernize the Business License Tax requires a 4/5 vote of the Town Council to place it on the ballot. A General Tax can be expended on any program, service, or capital need at the discretion of the local government's governing body. A simple majority vote (50 percent of voters plus one additional voter) is required for approval of a general tax.

With the November 2022 election scheduled, the last regular Council meeting to add an item on this ballot is at its August 2nd meeting. Should the Town Council choose to pursue a ballot measure, final approval including the ballot measure language will need to be submitted to the Santa Clara County Registrar of Voters by August 12, 2022. Provided below are ballot measure milestone dates:
 August 12, 2022: Last day for Resolutions calling a measure  August 16, 2022: Deadline for submitting primary arguments in favor of or against a measure
 August 17, 2022: Last day to amend or withdraw a measure  August 23, 2022: Deadline for submitting rebuttal arguments to primary arguments in favor of and against a measure and impartial analyses.

If the Town Council directs staff to continue pursuing a business tax modernization ballot measure, staff will return to Council on August 2, 2022 with draft ballot language, resolution, and ordinance.

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PAGE 5 OF 6
SUBJECT: Business License Modernization
DATE: June 16, 2022
DISCUSSION (continued):

Community Outreach
If the Town Council directs staff to continue pursuing a business tax modernization ballot measure, staff will implement a comprehensive business outreach plan during the summer, including the following elements:
 To provide information on the proposed business license tax measure, staff will create a webpage on the Town’s website with background information for residents and businesses interested in the issue. In addition to a dedicated webpage, staff will utilize the Town’s social media platforms to disseminate information.  Staff intends to coordinate business outreach to the Los Gatos Chamber of Commerce and its member businesses. Since not all Los Gatos businesses are Chamber members, broader outreach will be needed in local newspapers and other modes.  Staff will engage one-on-one with the Town’s largest employers and business groups.  The Town will publicize and host a virtual Business Forum event. To the extent it is feasible, staff would send out a postcard to all Business License holders inviting them to this event.
 Staff is available to meet with local service clubs and others to obtain additional input.  As requested by the Finance Commission at its June 13, 2022 meeting, a special Commission meeting would be scheduled in July to review the results of the additional research and outreach.

CONCLUSION:

The Town Council should review the Town of Los Gatos Business License Analysis and Ordinance Review and direct staff to pursue a ballot measure to modernize and create a more equitable tax structure.

COORDINATION:

This staff report was coordinated with the Town Manager and Finance Director.

Page 856 ends

PAGE 6 OF 6
SUBJECT: Business License Modernization
DATE: June 16, 2022
FISCAL IMPACT:

A single ballot measure costs approximately $58,256 and the Proposed Fiscal Year 2022/23 Operating Budget includes funding for potential measures.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachments:

1. October 19, 2021 Town Council Staff Report

2. HdL Business License Analysis and Ordinance Review

Page 857 ends

PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 10/19/2021
ITEM NO: 9
DATE: October 11, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive the Town Finance Commission Recommendation and Authorize the Town Manager to Issue a Request for Proposals (RFP) for Consultant Services to Evaluate and Recommend Modernization Options for the Town’s Business License Tax Program.

RECOMMENDATION:

Receive the Town Finance Commission recommendation and authorize the Town Manager to issue a RFP for consultant services to evaluate and recommend modernization options for the Town’s Business License Tax Program.

BACKGROUND:

On September 13, 2021, the Town Finance Commission reviewed the Town’s Business License Tax Program. The Town's Business Tax Ordinance was last adopted on June 3, 1991 (Attachment 1). The Town Business License Tax program is governed by Chapter 14 of the Los Gatos Town Code: Los Gatos Town Code - Business Licenses. The Articles I through III of the business license chapter are enacted solely to raise revenue for municipal purposes and are not intended for regulation. The Town currently has 2,557 businesses in active pay status and another 2,577 registered on the books of which it is estimated that a third may still be active in Town. This Tax, which is charged to business owners, currently generates approximately $1.4 million annually.

DISCUSSION:

Having not been updated in over 30 years, the current rate structure does not take into account shifts in business models and delivery over the decades. In addition, the current ordinance does not contemplate inflation adjustments or other predetermined structural rate changes, therefore leaving the rates unchanged for 30 years.

Page 858 ends

PAGE 2 OF 3
SUBJECT: Business Tax Modernization
DATE: October 11, 2021
DISCUSSION (continued):

The Town issues different types of business licenses based on the type of activity. The amount of business license tax paid by each business is also based on its business activity because the purpose of the tax is to cover municipal services and infrastructure utilized by the business, its employees, and customers. Fees for activities such as wholesales and manufacturing are charged on a sliding scale based on gross receipts, as is retail, with retail being capped at $975.

These gross receipt activities account for approximately 25% of annual business licenses, while the remaining 75% are flat fee businesses. While the Town Code list different license types, the most common ones are listed below with the appropriate business license tax and fees.

Most cities in the Bay Area and throughout California have either updated their tax structure through local ballot measures or enacted a tax if they previously didn’t have one. In California, all taxes imposed by local governments are classified as either general or special taxes and must be put before voters as a local ballot measure for approval. Recent examples of general business tax ballot measures include:
• Daly City – Measure BB 2018 (approved 80.64%)
• Mountain View – Measure P 2018 (approved 71.05%)
• Sausalito – Measure M 2018 (approved 65.42%)
• Berkley – Measure U1 2016 (approved 74.93%)
• Monterey – Measure H 2016 (approved 73.86%)
• San Jose – Measure G 2016 (approved 65.59%)
• Foster City – Measure U 2013 (approved 73.2%)
• Campbell – Measure M 2010 (approved 69.59%)
Business License Processing Fee
(Annual)
Planning Fees - Businesses Located in Los Gatos
(One-time )
State Mandated Fee
(Annual)
Type of Business License
Business License Tax - Without
Penalty
Minimum (Annual)
Business License Tax - Without
Penalty
Maximum (Annual)
Typical Businesses
Retail
(Based on Gross Receipt) $75 $975 Restaurant, Grocery Store , Gas Station, Hair Salon
Wholesale/Manufacturee/Wholesale/Ecommerce
(Based on Gross Receipt) $150
Based on sliding scale
$4,837.50 for $12,000,000 in gross receipt
plus $75 for each $550,000 or fracntion
therfor in excess of $12,000,000
Netflix, Manufacturers
Professional/Semiprofessional
(per employee) $200 $200 Medical Doctor, Attorney, Tutor, Massage Therapist, Broker
Support Staff - Professional/Semiprofessional
(per employee) $15 $15 Real Estate Agent
Service
(per business) $100 $100
Gardeners, Repair Service, Hair
Stylist, Janitoral service
Contractor
(per business) $224 $224 Licensed California State Contractor Typical Business License Taxes and Fees
$40 at the Time of Establishment/ $30 at Renewal - Located In Los Gatos $20 - Not Located in Los Gatos
$161.20 Home Occupancy Permit - Home Based Businesses
$176.70 Change of Occupancy / $262.20 Change of Use - Commercial Zoning $4

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PAGE 3 OF 3
SUBJECT: Business Tax Modernization
DATE: October 11, 2021
CONCLUSION:

The Finance Commission has recommended that the Town Council consider pursuing the modernization of the Business license Tax schedule adopted in 1991. To better understand the Town’s Business License Tax program, the Council should authorize the Town Manager to issue a RFP for the review and recommendation of modernization options for the program.

COORDINATION:

This staff report was coordinated with the Town manager, Town Attorney, and Director of Finance.

FISCAL IMPACT:

There is no cost associated with issuing the RFP. Based on the results of the RFP, staff will return to Council with budget recommendations based on the successful RFP response.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required.

Attachment:

1. 1991 Business Tax Ordinance

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This Page Intentionally Left Blank

Page 861 ends

ORDINANCE 1857

ORDINANCE OF THE TOWN OF LOS GATOS
AMENDING CHAPTER 15, ARTICLE II OF THE TOWN CODE
THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY ORDAIN:

SECTION I
Article II of Chapter 15 of the Town Code is hereby repealed in its entirety.

SECTION II
Article II of Chapter 15 of the Town Code is hereby enacted to read as follows:

ARTICLE II

SCHEDULE
Section 15 -27. Gross Receipts Tax
Every person doing business in the Town, except those persons whose business is taxed under the terms of Section 15 -28 shall pay an annual license tax based on the gross receipts of the business.

The tax is levied according to one or both of the following schedules. When the business activities of one person, taxable under the provisions of this section, involve both retail and manufacturing, wholesaling or jobbing transactions, the total gross income is apportioned between the two schedules, according to its source.

Retailing
At Least But Less Than Tax
0 50,000 75.00
50,000 100,000 112.50
100,000 150,000 150.00
150,000 200,000 187.50
200,000 250,000 225.00
250,000 300,000 262.50
300,000 350,000 300.00
350,000 400,000 337.50
400,000 450,000 375.00
450,000 500,000 412.50
500,000 600,000 450.00
600,000 700,000 487.50
700,000 800,000 525.00
800,000 900,000 562.50
900,000 1, 000000, 600.00
1, 000000, 1, 000100, 637.50
1, 000100, 1, 000200, 675.00
1, 000200, 1, 000300, 712.50
1, 000300, 1, 000400, 750.00
1, 000400, 1, 00050, 787.50
1, 000500, 1, 000600, 825.00
1, 00060, 1, 00070, 862.50
1, 000700, 000 1,800, 900.00
1, 000800, 1, 00090, 937.50
1, 00090, 2, 00000, 975.00
and above)
MGR035 A: \FEES \0RDINANC
ATTACHMENT 1 Page 862
Section 15 - 28. License Taxes for Specified Businesses Every person doing any of the kinds of business specified in the subdivisions of this Section 15- 28 shall pay the business license tax specified in such subdivision. The fees are annual unless otherwise specified.

Sec. 15- 28.02. Advertising Signs
Signposting and painting .... ............................... 420.00 MGR035 A: \FEES \ ORDINANC 2
Manufacturing, Wholesaling and Jobbing
At Least But Less Than Tax
0 200,000 150.00
200,000 300,000 187.50
300,000 400,000 262.50
400,000 500,000 337.50
500,000 600,000 450.00
600,000 800,000 562.50
800,000 1, 000000, 675.00
1, 000000, 1, 00020, 787.50
1, 000200, 1, 000400, 900.00
1, 000400, 1, 000600, 1, 50012.
1, 000600, 1, 000800, 1, 00125.
1, 000800, 2, 000000, 1, 50237.
2, 000000, 2, 000500, 1, 00350.
2, 000500, 3, 000000, 1, 50462.
3, 000000, 3, 000500, 1, 00575.
3, 000500, 4, 000000, 1, 50687.
4, 000000, 4, 000500, 1, 00800.
4, 000500, 5, 000000, 1, 50912.
5, 00000, 5, 000500, 2, 0025.
5, 000500, 6, 000000, 2, 50137.
6, 00000, 6, 00050, 2, 00250.
6, 000500, 7, 000000, 2, 50362.
7, 00000, 7, 00050, 2, 00175.
7, 000500, 8, 000000, 2, 50587.
8, 000000, 8, 000500, 2, 00700.
8, 000500, 9, 000000, 2, 50812.
9, 000000, 9, 000500, 2, 00925.
9, 000500, 10, 000000, 3, 50037.
10, 000000, 10, 000500, 4, 00500.
10, 000500, 11, 000000, 4, 50612.
11, 000000, 11, 00050, 4, 00725.
11, 000500, 12, 000000, 4, 50837.
12, 000000, 4, 50837.
plus $75.00
for each $550,000 or
fraction thereof in
excess of $12, 000000,
Section 15 - 28. License Taxes for Specified Businesses Every person doing any of the kinds of business specified in the subdivisions of this Section 15- 28 shall pay the business license tax specified in such subdivision. The fees are annual unless otherwise specified.

Sec. 15- 28.02. Advertising Signs
Signposting and painting .... ............................... 420.00 MGR035 A: \ FEES \ ORDINANC 2

Page 863 ends

Section 15- 28.04. Amusements
Shows, concerts, et cetera (per day) ........................... 42.00 Circuses, menageries, etcetera:

Less than 2,000 seating capacity
First day ............. ............................... 420.00 Each succeeding day ..... ............................... 52.50 More than 2,000 seating capacity
First day ............. ............................... 630.00 Each succeeding day ..... ............................... 105.00 Side shows ( per day):

Entrance fee not exceeding$.10 .............................. 21.00 Entrance fee exceeding $.10 . ............................... 42.00 Circus procession or parade ( each) ............................ 210.00 Carnivals ( per day) ....... ............................... 42.00 Ferris Wheels, merry-go- rounds, et cetera (per month) ................. 210.00 Public dances (per dance) ... ............................... 21.00 Section 15- 28.05. Apartment Rentals and Mobilehome Parks.

The term "apartment' includes all buildings or groups of buildings on the same premises, composed of a total of three or more dwelling units (per unit) .................... 7.50 Section 15- 28.06. Auctioneers ............................... 112.50 Section 15- 28.08. Billiard and Pool Rooms ( per table) ................. 52.50 Section 15- 28.10. Boardinghouses.

Boardinghouses licensed by the State or County as boardinghouses for pensioners, and who board pensioners exclusively, are exempt from the business license tax.

For first four boarders ...... ............................... 21.00 For each person over four .... ............................... 4.50 Section 15- 28.12. Cleaning and Dyeing Laundry Delivery.

Vehicles ( annual, per vehicle) . ............................... 168.00 The tax applies to those who have no fixed place of business in the Town.

Section 15- 28.14. Contractors ( annual).

A separate fee for each type of work activity, such as general engineering, building, plumbing, plastering, painting, masonry, termite, service, installation or other specialty, in addition to any sales or jobbing license fee ...... ............................... 224.00 MGR035 A: \FEES \ORDINANC 3

Page 864 ends

Section 15- 28.15 Day Care Facilities.

Day Care Facilities provide day care for children under 18 years of age who are unrelated to the licensee.

Small Family Day Care Home - a facility providing day care for six (6) children or less. (Including resident children) ....... ............................... No Fee Large Family Day Care Home - a facility providing day care for 7 to 12 children (including resident children) ............. ............................... No Fee Nursery School - a facility providing day care for 13 or more children ...... No Fee Section 15- 28.16. Hospitals, Rest Homes, Etc
Annual, or ............. ............................... 140.00 Per bed, if that is larger ..... ............................... 10.00 Section 15- 28.18. Hotels and Motels ( annual, per guest room) ............ 7.50 Business activities other than renting rooms, conducted in connection with a hotel, are taxed separately.

Section 15- 28.20. House Movers.

Annual license .......... ............................... 105.00 Additional per structure moved ............................... 84.00 Section 15- 28.22. Itinerant Photographers ( annual) ................... 210.00 Section 15- 28.24. Itinerant Vendors ( daily) ........................ 105.00 The works "itinerant vendor" mean any person, both principal and agent, who engages in a temporary and transient business n the Town selling goods, wares and merchandise with the intention of continuing such business in the town for a period of not more than ninety days, and who, for the purpose of carrying on such business, hires, leases or occupies any room, building or structure for the exhibition or sale of such goods, wares, or merchandise, or from which room, building or structure the sales shall be made or business solicited by means of samples or delivery from house to house. The person so engaged is not relived from the provisions of this section by reason of associating temporarily with any local dealer, trader, merchant or auctioneer, or by conducting temporary or transient business in connection with, or as a part of, or in the name of any local dealer, trader, merchant or auctioneer. The provisions of this section do not apply to commercial travelers or selling agents selling their goods to dealers, whether selling for present or future deliveries, by sample or otherwise, nor to hawkers on the street, nor peddlers from vehicles, nor to persons selling fruit, vegetables, butter, eggs, or other fruit or ranch products.

Section 15- 28.28. Junk Dealers (annual) ......................... 420.00 Junk dealer" means any person who has a fixed place of business in the Town, and who engages in or carries on the business of buying or selling, either at wholesale or retail, any old rages, sacks, bottles, cans, papers, metals or other articles of junk.

MGR035 A: \FEES \ORDINANC 4

Page 865 ends

Section 15- 28.30. Junk Collectors ( annual, per vehicle) .................... 84.00 Junk collector" means any person who has not fixed place of business in the Town and who engages in or caries on the business of collecting, buying or selling any old rags, sacks, bottles, cans, papers, metals or other articles of junk.

Section 15- 28.36. Peddlers.

Peddlers of wares other than food, per person:

Daily...........21.00
Peddlers of food, except lunch wagon operators:

Using a vehicle, per vehicle, annual ... ............................... 210.00 Not using a vehicle, carrying wares by hand ............................ 42.00 Lunch wagon operators (per vehicle, annual) ........................... 210.00 Peddlers engaged in the business of selling any personal property at a sale conducted by an organization exempt from the business license tax under the provisions of Section 15- 5 of this chapter shall pay a license tax of seven dollars and fifty cents per day. This rule applies only when all fees, commissions or other renumeration of any kind paid by the peddler to the organization conducting, sponsoring or promoting the sale is devoted exclusively to the business license tax - exempt purposes of the organization and the organization has obtained prior approval from the Town Council to conduct the sale.

Daily.............7.50
A "peddler" is every person not having a regularly established place of business in the Town who travels from place to place, or has a stand upon any public street, alley or other public place, doorway or any building, unenclosed or vacant lot, or parcel of land, who sells, offers for sale, any goods, wares or merchandise in his possession.

Section 15- 28.38. Professional and Semiprofessional Occupations.

Per professional or semiprofessional person ........................... 200.00 Additional per employee ............ ............................... 15.00 Professional or semiprofessional business or service occupations include, but are not limited to, the following:

Accountant
Advertising counsel
Appraiser
Architect
Artist
Assayer
Attorney -at -law
Auditor
Bacteriologist
Broker, stock or bond
Chemist
Chiropodist
Chiropractor
Dentist
Designer or decorator
MGR035 A: \FEES \QRDINANC 5

Page 866 ends

Detective or investigative personnel
Draftsperson
Drugless practitioner
Electrologist
Engineer: civil, mining, electrical, construction
Engineer: structural, consulting, mechanical, hydraulic Engraver
Feed, grain and fruit broker
Geologist
Illustrator or showcard writer
Landscape architect
Lapidary
Lithographer
Masseuse or masseur
Oculist, optician or optometrist
Osteopath
Physician
Real estate brokers
Surgeon
Surveyor
Taxidermist
Veterinarian
X -ray, dental or medical laboratory
Section 15- 28.40. Service Occupations .......................... 100.00 Service occupations" means appliance, home furnishing or radio and television installation, maintenance and repair, janitorial and building maintenance, or landscape installation and maintenance.

Section 15- 28.42. Shooting Galleries ........................... 105.00 Section 15- 28.44. Solicitors ( per business) ........................ 210.00 A "solicitor" is one who engages in the business of going from house to house, place to place or in or along the streets within the Town selling or taking orders for, or offering to sell or take orders for, goods, wares, merchandise, advertising or other things of value for future delivery, or for services to be performed in the future.

Section 15- 28.46. Taxicabs.

Per business ........... ............................... 150.00 Additional per taxi ........ ............................... 22.50 Section 15- 28.48. Theaters and Concert Halls ...................... 105.00 Section 15- 28.50. Trucking (annual)
Persons other than peddlers who sell or deliver food or any other goods by means of a vehicle, and who have no fixed place of business in Town, per vehicle ............... 140.00 MGR035 A: \FEES \ORDINANC 6

Page 867 ends

Persons who make no more than two deliveries or sales per quarter are exempt from the foregoing tax. All other motor vehicle delivery business, whether the business operates on a regular route or between fixed termini or not:

For one vehicle .......... ............................... 45.00 For each additional vehicle .. ............................... 22.50 Section 15 -29. Credit for Businesses in Business Improvement Area a. Any business located and operating within a parking and business improvement area established pursuant to Streets and Highways Code §§ 36500 et ee . shall receive a credit on the annual license tax as set forth in this section.
b. Each person doing any of the kinds of business specified in subdivisions 15- 28.14, 15-

28.16, 15- 28.38, 15- 28.40, and 15 -28.50 shall receive a credit equal to 50% ( one -half) of the annual business license tax.
c. Every person doing any other kind of business shall receive a credit equal to 33 -1/3% one- third) of the annual business license tax.

SECTION III
Any judicial action or proceeding to attack, review, set aside, void or annul this ordinance shall be commenced within 120 days after adoption of this ordinance.

SECTION IV
A. This ordinance shall take effect July 1, 1991. Within 15 days after this ordinance is adopted the Town Clerk shall cause it to be published once in a newspaper of general circulation published and circulated in the Town.

B. In establishing the effective date, the Town Council finds that this ordinance relates to taxes for the usual and current expenses of the Town within the meaning of Government Code Section 36937, and must be effective July 1, 1991, so that business license fees will be paid at higher rates commencing with the beginning of the 1991 -92 fiscal year.

This ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on May 28, 1991 and adopted by the following vote as an ordinance of the Town of Los Gatos at a eeting of the Town Council of the Town of Los Gatos on June 3, 1991. d COUNCIL MEMBERS:

AYES: Joanne Benjamin, Randy Attaway, Eric D. Carlson, Steven Blanton NAYS: None
ABSENT: Mayor Brent N. Ventura
ABSTAIN:

SIGNED:

VICE- MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
ATTEST:

CLERK OF THE TOWN OF LOS , d OS

LOS GATOS, CALIFORNIA
MGR035 A: \ FEES \ORDINANC

Page 868 ends

SUBMITTED BY
HdL Companies
120 S. State College Blvd., Ste 200
Brea, CA 92821
hdlcompanies.com

CONTACT
Eric Myers
T: (424) 228-8517 Ext. 1022
E: [email protected]
Final
June 8, 2022
Business License Analysis & Ordinance Review
ATTACHMENT 2

Page 869 ends

2 | Page
Table Of Contents
EXECUTIVE SUMMARY 3
SECTION 1 – TOWN OF LOS GATOS & COMPARATIVE JURISDICTIONS 4 BUSINESS TAX - ANALYSIS 4
BUSINESS TAX - EQUITY OF CONTRIBUTION 5
TOWN OF LOS GATOS: BUSINESS TAX – BUSINESS TYPE SUMMARY 6 TOWN OF LOS GATOS: COMPARISON TO NEIGHBORING CITIES 7
COMPARISON CITIES SUMMARY TABLE (USING FY 18-19 DATA) 8 RATE COMPARISON - TOWN OF LOS GATOS VS. NEIGHBORS 11
SECTION 2 – CATEGORY & TAX ANALYSIS 12
LICENSE CLASSIFICATION AND RATE TYPES 12
MODEL 1: EXISTING CATEGORIES WITH SIMPLE INCREASES 13
MODELS 2 AND 3: GROSS RECEIPTS TAX – REPLACE ALL CATEGORIES WITH GROSS RECEIPTS TAX 13 PROPOSED RATES COMPARISONS 17
APPENDIX A 20
CODE REVIEW 20

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3 | Page
Executive Summary
Background
The Town of Los Gatos (Town) requires all businesses operating within the Town to obtain a business license and pay business license taxes. (Town’s Municipal Code (Code) section 14.10.020). This revenue is locally controlled and funds essential services. The Town commissioned the HdL Companies ("HdL" or "we," "us," "our," or similar terms) to prepare this tax study to review the administrative efficiency of the current structures, to review options for improving the equity of the business license tax structure, if any, and to investigate the possibilities for additional revenue generation. In addition, the Town would like a flexible structure that can adapt to ongoing changes in the economy.

To put it another way, the models and recommendations in this study should be evaluated not only on whether they increase revenue but, ideally, also on whether they move the Town's business license structure up and to the right in the four quadrants presented below in Chart 1.

Chart 1: Key attributes of modern business tax structures

Recommendation
The Town’s current structure, while capable of being improved, is already producing well when compared to similar jurisdictions. If the Town were to consider updating its tax structure, we recommend that the Town consider adopting a gross receipt tax structure like Model 2 on page 14. This model is similar to the Town’s existing structure but it makes that structure simpler to administer, improves the equity, and could modestly increase revenue for the future.

Report Structure
We have divided this report into two major sections and an appendix.

Section 1 - Pages: 4 to 11
In the first section, we review the Town's current revenue and tax structures to describe the Town's current situation.

Because the Town already uses some gross receipts, the Town is currently well-placed in comparison to similar jurisdictions.

The Town has a concentration of professional services and rental revenue that make its economy different from many jurisdictions.

Section 2 - Pages: 12 – 20
In this section, we review three alternative tax structures. Model 1 is simple percentage increase applied to the existing tax structure. Models 2 and 3 estimate the impact of switching from the Town’s current hybrid approach—some gross receipts and some flat fees—to a gross receipts-based approach. Ultimately, we recommend model 2 because of its simplicity and its modest increase in revenue without imposing too much of an increase on key economic sectors.

Appendix A
Appendix A discuss key items in the Town’s current structure that could be administratively simplified. It also notes some areas for further review to help modernize the Town’s tax structure. Unequal Effective Tax Rate Equitable Effective Tax Rate
Tax Structure Simplification
Complex Tax Implementation

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4 | Page
SECTION 1 – Town of Los Gatos & Comparative Jurisdictions Business Tax - Analysis
The Town currently has approximately 2,483 business that are paying their business license tax. Over the last five fiscal years, business license tax revenue has averaged approximately $1.43 million per fiscal year. As you can see in Chart 2, the Town's business tax revenue peaked pre-pandemic and has yet to return to pre-pandemic levels. This is consistent with the slow recovery we are seeing statewide. (Please note that while FY 2022 is showing a decline, that may simply be from late reporting at the time the data was pulled.)
Chart 2: 5-year revenue trend
Chart 3, which compares the percentage change year-over-year in business tax revenue to the percentage change in sales tax, shows the impact of the pandemic on both sales tax and business license tax growth rates. The comparison is useful since it shows the varying impacts of economic changes on sales tax (goods sold at retail) and the business license tax (the broader economy, including services). As you can see, the impact of the recession on the Town’s overall economy was deeper than it was on just the retail sector.

Chart 3: Comparing revenue growth against the broader economy $1,526,894
$1,686,251
$1,334,654
$1,443,637
$1,272,892
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
FY2018 FY2019 FY2020 FY2021 FY2022
Town of Los Gatos Business Tax Revenue
Recent Trend
-30.00%
-20.00%
-10.00%

0.00%

10.00%

20.00%
FY2019 FY2020 FY2021
Business Tax and Sales Tax Percent Change
Year to Year (YTY)
Bus Tax % Change YTY
Sales Tax % Change YTY

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5 | Page
Business Tax - Equity of Contribution
The Town currently uses a combination of flat fees and gross-receipts to measure the tax on businesses.

Table 1: Current Tax Structures
Business Category Type Total Count Primary Tax Type
CONTRACTOR 539 $224 Flat Fee
GENERAL COMMERCE/RETAIL 644* Tiered Gross-Receipts
RENTAL (COMMERCIAL & RESIDENTIAL) 227 $7.50 per unit (over 3 dwelling units)
SERVICE 511 $100 flat fee
PROFESSIONAL 562 $200 per professional/$15 per
non-professional employee
TOTALS 2,483
*Includes 342 businesses that did not have a classification in the data As you can see in chart 4, given the Town’s current use of flat fees and decreasing gross-receipts tax rates, the Town’s current structure is regressive. For example, a general retail business grossing $50,000 a year (the small business in the chart below) would pay $75.00, which is an effective tax rate of 0.15%. That is not a bad tax rate. But a large business, grossing $1 million in a year, will pay $600 or 0.06%--less than half the effective tax rate of the small business. From a revenue perspective, this is perfectly reasonable given that larger business contributes more revenue overall. But it leaves something to be desired on the equity front since it imposes a higher effective tax rate on smaller businesses. Chart 4 below illustrates the current effective tax rates in the town using three hypothetical business.

Chart 4: Examples of Current Tax Rate as Percent of Estimated Gross Receipts

0.150000%

0.080000%

0.060000%

0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 0.16%
Business
Large Business
Medium Business
Small Business

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6 | Page
Town of Los Gatos: Business Tax – Business Type Summary As you can see below, the Town's economy, at least as reflected in its business tax revenue, is heavily concentrated in professional and other services. These business are fairly mobile and thus may be more sensitive to tax increases.

Pie Chart 1:
4%
13%
11%
10%
39%
9%
7%
5% 1%1%
Total Share of Tax Revenue Generated by Business Type
Real Estate and Rental and
Leasing
Health Care and Social
Assistance
Professional, Scientific, and
Technical Services
Construction
Other Services (except Public
Administration)
All Others
Retail Trade
Accommodation and Food
Services
Finance and Insurance
Transportation and
Warehousing

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Town of Los Gatos: Comparison to Neighboring Cities
Below you can see the comparison jurisdictions that we chose to use in the study. They were chosen because they were:
(1) in similar geographic regions, (2) were like the Town in median income, and (3) were relatively similar in population density.

Chart 5
The table below highlights population, the estimated number of licensed businesses, and estimated annual revenue for quick comparison. Below the table are some key graphics showing how the Town compares to other jurisdictions. For purposes of comparison, we use the fiscal year 18-19 data. We do so because that data is pre-COVID and so avoids the ‘noise’ in the data caused by the impact of the pandemic on the Town.

Continued on next page.

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Comparison Cities Summary Table (Using FY 18-19 data)
Table 2: Comparison Data
Jurisdiction Name
Est.

Square
Miles
Est.

Population
Est. Median
Household
Income
Est. Businesses
in FY 18-19 Tax Type Est. Revenue in FY 18-19
Gilroy 16.15 59,520 $ 107,729.00 3,545 Gross Receipts
(capped at $2k) $ 693,758
Morgan Hill 12.88 45,483 $ 128,373.00 3,341 Employee + Flat $ 246,007 Campbell 5.8 43,959 $ 122,644.00 5,869 Employee $ 693,263 San Bruno 5.48 42,807 $ 113,103.00 4,060 Gross Receipts $ 1,814,000 Los Gatos 11.08 33,529 $ 156,270.00 2,483 Gross Receipts + Fixed Fee $ 1,686,251
Los Altos 6.49 31,625 $ 240,094.00 3,807 Employee $ 540,262 Saratoga 12.38 31,051 $ 201,046.00 3,742 Employee + Flat $ 377,106 Monterey 8.47 30,218 $ 80,908.00 3,866 Gross Receipts $ 3,834,852 San Carlos 5.54 30,185 $ 189,739.00 4,245 Employee + Flat $ 1,020,000 Belmont 4.62 26,941 $ 160,046.00 3,074 Employee & Flat $ 880,000 Sausalito 1.77 7,269 $ 120,920.00 2,285 Gross Receipts $ 631,060 As you can see in the above table, the Town’s FY19 business tax revenues place it in the top three amongst this comparison group. One interesting comparison is between the Town and Saratoga. These are the two least densely populated jurisdiction in the study but the Town’s business tax revenues are significantly higher than those for Saratoga.

This is likely influenced by Saratoga’s per employee structure. Another instructive comparison is with Belmont. Belmont has almost double the population density of the Town but given its current tax structure received 50% of the tax revenues that the Town did in FY19. This too is likely a function of the Employee and Flat-fee structure currently used in Belmont.

Yet another interesting comparison may be with the City of Sausalito. While the City is quite a bit smaller, its per capita revenue is nearly twice that of the Town’s and is more than that now given its implementation of a simplified gross receipts model a couple of years ago.

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Chart 6: Est. Count of Businesses
Chart 7: Business Tax Per Capita Comparison
5,869
4,245
4,060
3,866
3,807
3,742
3,545
3,341
3,074
2,483
2,285
0 4,000 8,000 12,000 16,000 20,000 24,000
Campbell
San Carlos
San Bruno
Monterey
Los Altos
Saratoga
Gilroy
Morgan Hill
Belmont
Los Gatos
Sausalito
Est. Count of Businesses
FY18/19 by Jurisdiction
$126.91
$86.82
$50.29
$42.38
$33.79
$32.66
$17.08
$15.77
$12.14
$11.66
$5.41
$- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00
Monterey
Sausalito
Los Gatos
San Bruno
San Carlos
Belmont
Los Altos
Campbell
Saratoga
Gilroy
Morgan Hill
Est. FY 18/19 Business Tax Revenue
Per Capita

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Chart 8: Business Tax per Business Comparison
$991.94
$679.12
$446.80
$286.27
$276.18
$240.28
$195.70
$141.91
$118.12
$100.78
$73.63
$- $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00
Monterey
Los Gatos
San Bruno
Belmont
Sausalito
San Carlos
Gilroy
Los Altos
Campbell
Saratoga
Morgan Hill
Est. FY 18/19 Business Tax Revenue
Per Business

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Rate Comparison - Town of Los Gatos vs. Neighbors
Current Rate Comparison (Table 3)
Sample Business Los Gatos Belmont San Carlos San Bruno Los Altos Sausalito Small Craft Business: 1 employee / <$20,000 $75.00 $375.00 $234.00 $75.00 $75.00 $125.00 Restaurant: 3 Employees / $150,000 $150.00 $443.00 $234.00 $162.50 $75.00 $150.00 Big Retailer: 275 Employees / $19,000,000 $975.00 $9,691.00 $10,024.00 $7,750.00 $2,765.00 $19,000.00 Hotel / Rental Property: 50 Employees /
$1,500,000 $375.00 $341.00 $2,424.00 $1,205.00 $305.00 $1,500.00 Doctors Office: 20 Employees / $2,000,000 $2,150.00 $3,750.00 $1,304.00 $1,480.00 $980.00 $6,000.00 Professional Firm: 15 Employees / $1,100,000 $1,520.00 $2,659.00 $1,009.00 $985.00 $735.00 $3,300.00 Small Contractor: 1 Employee / $75,000
(outside) $224.00 $341.00 $234.00 $75.00 $75.00 $150.00 Contracting Firm: 3 Employees / $225,000
(outside) $224.00 $341.00 $234.00 $75.00 $150.00 $450.00 Sample Business Los Gatos Saratoga Morgan Hill Gilroy Campbell Monterey Small Craft Business: 1 employee / <$20,000 $75.00 $110.00 $20.00 $40.00 $124.00 $26.00 Restaurant: 3 Employees / $150,000 $150.00 $130.00 $43.00 $120.00 $124.00 $213.50 Big Retailer: 275 Employees / $19,000,000 $975.00 $200.00 $3,035.00 $2,000.00 $572.00 $28,488.50 Hotel / Rental Property: 50 Employees /
$1,500,000 $375.00 $200.00 $165.00 $360.00 $321.00 $3,585.00 Doctors Office: 20 Employees / $2,000,000 $2,150.00 $200.00 $640.00 $100.00 $400.00 $2,988.50 Professional Firm: 15 Employees / $1,100,000 $1,520.00 $200.00 $450.00 $100.00 $400.00 $1,638.50 Small Contractor: 1 Employee / $75,000
(outside) $224.00 $45.00 $60.00 $150.00 $99.00 $101.00
Contracting Firm: 3 Employees / $225,000
(outside) $224.00 $45.00 $60.00 $150.00 $325.00 $326.00

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SECTION 2 – Category & Tax Analysis
The Town requested that HdL conduct an analysis of the current license structures and explore options for modifying the rates and categories. In Section 1, we summarized the current structure of the Town’s business tax and compared the town to neighboring jurisdictions to give an idea of how the various tax structures and markets in nearby municipalities are creating different revenue outcomes.

In this section, we provide options for modifying the Town's business tax rates and classifications. Using the data compiled in section 1 of this report on current license revenues, we developed models to estimate potential fiscal impacts to the Town from the different models. You can find summary charts on pages 17-19 that provide a quick look at each proposed model's impact on the Town revenues and the business community.

License Classification and Rate Types
In what follows, we will use five basic categories of businesses. You have seen those categories earlier in Table 1. These are five basic structures that are common across municipalities. The definitions below are general and not meant to be the complete definitions that would appear in a municipal code.

General Commerce/Retail: These are retailers, wholesalers, hoteliers, restaurateurs, and manufacturers. All these businesses are likely to contribute to your tax base in other ways (i.e., property tax and sales tax) and often have lower profit margins.

Rental (Commercial & Residential): This category includes any business that leases, rents, or provides use of real property to another individual or entity for compensation. Examples include but are not limited to commercial leasing, residential rental, parcel leasing, etc.

Service: This is the offering of services that require minimal to no higher education training. This is also the default category for any business that is not specifically defined in one of the other five categories. Examples include but are not limited to hair stylists, gardeners, nail salons, etc.

Professional: These businesses offer services that require a rigorous amount of training through any type of higher education, or vocational institutions that exclusively certifies, complete obtainment of skills and the ability to offer such professional services. Examples include but are not limited to a doctors’ office, a law office, a consulting firm, etc.

Contractors: These are persons or firms that are carrying on the business of a contractor, subcontractor, or builder particularly the construction or repair of any buildings. Examples include but are not limited to construction, plumbing, HVAC, etc.

Table 4: Approximate grouping of Town's Businesses by the proposed categories Business Category Type Total Count Total Taxes
CONTRACTOR 539 $ 128,316
GENERAL COMMERCE/RETAIL 644* $ 276,138
RENTAL (COMMERCIAL & RESIDENTIAL) 226 $ 50,845
SERVICE 512 $ 505,640
PROFESSIONAL 562 $ 311,954
TOTALS 2,483 $ 1,272,892
*Includes 342 businesses that did not have a classification in the data

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Model 1: Existing Categories with Simple Increases
The Town may elect to retain the existing structure while modifying the tax amounts for each category. Keeping the current structure in place would eliminate the need to create different categories and allow for a much simpler implementation for the Town and the business community. It would not avoid the need for an election since it would entail an increased tax rate. And it would not address any administrative complexity in the current workflows.

Table 5: Estimated revenue from a simple percentage increase Number of Businesses Est. FY2022
Revenue
20%
Increase
40%
Increase
2,483 $ 1,272,892 $1,527,470 $1,782,048
Model 1 – Highlights and Impact Review
As indicated in the model above, a simple increase could keep the existing structures in place while yielding higher revenues to the Town. A 20%-40% increase across all sectors of industry is easy to implement but it does nothing to address equity.

The drawback of model 1 is that the tax remains regressive. In fact, because it would increase the flat fees, it becomes more regressive. And, thus, does not really fit the Town's objectives.

Models 2 and 3: Gross Receipts Tax – Replace All Categories with Gross Receipts Tax
We now turn to consider two models that are variations on the theme of a gross-receipts-based tax.

Many California cities use some form of gross receipts tax structure. Many of those cities use a standard rate multiplier to determine the tax amount owed, setting the rate for each business category. For example, a city may choose to charge $1 per thousand dollars of gross receipts (0.001 x Gross) for a retail business while charging a rate of $3.00 per thousand dollars of gross receipts (0.003 x Gross) for service or professional businesses.

The benefits of gross receipts-based taxes are the equity of their effective tax rate, ease of calculation, and potential for capturing revenue from growth in the economy. The drawback is that it exposes Town revenues to the fluctuations of gross receipts in the economy.

Gross Receipts Tax – Estimates
Since we do not have information on gross receipts for the Town's current businesses, we used multiple assumptions in the options below, which are meant to provide an estimate of the possible impact and should not be relied upon for precise budgeting. The following information was used as a basis for the tax tables and models in the options below. Please note that in estimating the Total Gross Receipts, we have chosen to exclude a significant outlier that would skew the models.

Table 6: Key estimates used in the gross-receipts models Number of Businesses Total Business Taxable Gross
Receipts (Est.)
2,483 $1.17 billion

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Model 2: Gross Receipts Tax – Single Gross Receipts Rate Model 2 reflects the potential revenues for converting the Town tax to a single-rate, gross-receipts model. This model is simple to administer—everyone is charged the same rate—but it allows the Town to increase revenue. Model 2 also lowers the annual base rate to a uniform $25, to provide some tax relief for smaller businesses.

Table 7: Model 2—Potential Tax Structure
Tax Basis Tax Rate
Base Rate $25 Flat Rate (first $25,000 Gross Receipts)
Gross Receipts Tax + $1.50 per thousand dollars of Gross Receipts (0.0015 x Gross Receipts)
Model 2 Estimates Table
The table below indicates the potential revenues from implementing a gross receipts tax with two options, $1.25 per thousand and $1.50 per thousand. Information for the estimates comes from the data in the section above. Please note that this model and model three do not include the actual gross receipts. These models use estimated gross receipts based on the business classification. Although, this is generally useful, where, as here, the jurisdiction has taxpayers that far exceed the average, the model will be conservative.

Table 8: Model 2 – Rough Estimates from a simple gross receipts structure Number of Accts Taxable Gross
Receipts
Base Rate @ $25 per
Account
Tax Amount
$1.25/ thousand
-Over $25,000-
Tax Amount
$1.50/ thousand
-Over $25,000-
2,483 $1.17 billion $62,075 $1,382,939 $1,659,527
TOTAL $1,445,014 $1,721,602
Model 2 – Highlights and Impact Review
The "single rate" method of taxing on gross receipts provides an even distribution of the effective tax rate because all businesses subject to the tax will pay the same rate. Under this method, no cap is put in place, and therefore most of the revenues are received from the highest-grossing businesses. Model 2 expands revenue while keeping the tax structure simple and easy to understand for businesses and helping to decrease the effective tax rate on smaller businesses while asking larger businesses to pay their fair share.

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0.120000%

0.060000%

0.140000%

0.080000%

0.060000%

0.080000%

0.150000%

0.00% 0.05% 0.10% 0.15% 0.20%
Large Business
Medium Business
Small Business
Current vs. New Effective Tax Rates
Current Tax Structure
$1.50/Thousand-Over $25,000
$1.25/Thousand-Over $25,000
Chart 9: Estimated Effective Tax Rates Under A Simple Gross Receipt Model Model 3: Gross Receipts Tax – Classification-Based Rates Model 3, as indicated below, would create different rates for different business classifications. For example, the Town might choose to implement a rate for the retail/wholesale/miscellaneous business activities at a base rate of 0.001, recognizing the higher costs of goods sold and lower profit margins for these types of business as well as their contribution to other Town revenues such as sales tax. Conversely, the Town could consider implementing a higher rate for professionals due to the nature of their business model. This model affords the most flexibility for increasing revenues while accommodating certain business categories. Model 3 utilizes the same base rate as the previous model to resemble the base rate of neighboring cities.

Please note that for the Town of Los Gatos, given its more upscale nature and concentration of professional services, the additional burden placed on professional services in this model may be a serious constraint on how useful Model 3 if it were implemented.

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Tax Structure and Estimated Revenue
The following table illustrates how gross receipts rates can vary by categories giving flexibility to the tax structure. The structure provided is just one example of how the Town might utilize a gross receipt model. Should the Town decide to use a gross receipts tax model, HdL will work with the staff to finalize a structure that best serves the Town's goals.

Table 9: Basic tax structure for classification-based gross receipts Categories Base Rate Gross Receipts Tax Rate

CONTRACTOR
$25 Flat Rate per
Business (first $25,000
in Gross)

0.002 X Gross
GENERAL COMMERCE/RETAIL 0.001 X Gross

RENTAL (COMMERCIAL &
RESIDENTIAL) 0.003 X Gross
SERVICE 0.001 X Gross
PROFESSIONAL 0.003 X Gross
Table 10: Estimated revenue from classification-based gross receipts Business Type
Number
of Accts
Est. Taxable Gross
Receipts
Base Rate
$25 per
business
Total Est.

Annual Gross
Receipts Tax
Current Taxes
CONTRACTOR 539 $ 130,595,970 $ 13,475 $ 234,241 $ 128,316 GENERAL COMMERCE/RETAIL 644 $ 513,460,273 $ 16,100 $505,910 $ 276,138

RENTAL (COMMERCIAL &
RESIDENTIAL) 226 $ 58,682,658 $ 5,650 $159,097 $ 50,845 SERVICE 512 $ 112,360,600 $ 12,775 $ 199,171 $ 505,640
PROFESSIONAL 562 $ 353,067,423 $ 14,050 $1,017,052 $ 311,954 2,483 $1.17 billion $62,075 $ 2,116,177
TOTAL $ 2,178,252 $ 1,272,892
Model 3 – Highlights and Impact Review
This option has the benefit of spreading the burden of an increase across multiple business types. But given the high number of professionals in the Town’s economy there would be a significant increase in taxes paid by professional services. While they may be able to absorb the cost, they may also choose to relocate. The impact of such a loss should be considered when evaluating the Town’s options. The Town has the option of modifying the rates and reassigning business types to different categories to account for concerns about impacts on different parts of the economy. The model above includes basic rate increases for standard categories but can be further expanded or contracted to accommodate a different method of the Town's choosing.

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Proposed Rates Comparisons
Table 11: Comparing Gross-Receipt Models By Hypothetical Business Type Sample Business
Town's
Current
Rates
Model 2
Gross Receipt
$1.50 /
Thousand
Model 3
Gross Receipts
$1 - $3 /
Thousand
Small Craft Business: 1 Employee /
<$20,000 $75 $25 $25
Nail Salon: 1 Employee/$100,000
$112.5 $138 $100
Tutor: 1 Employee/$75,000
$200 $100 $75
Restaurant: 3 Employees / $150,000
$150 $213 $150
Mid-size Restaurant: 15 Employees /
$2,000,000 $975 $2,988 $2,000
Big Retailer: 275 Employees /
$19,000,000 $975 $28,488 $19,000
Hotel / Rental Property: 50
Employees / $1,500,000 $375 $2,238 $1,500
Doctors Office: 10 Professional/ 10
Support / $2,000,000 $2,150 $2,988 $5,950
Doctor's Office: 1 Professional/1
Support/$745,000 $215 $1,105 $2,185
Doctor's Office: 20 Professionals /1
Support/$2,000,000 $4,015 $2,988 $5,950
Professional Firm: 15 Employees /
$1,100,000 $1,520 $1,638 $3,250
Attorney: 1 Professional/$300,000
$200 $438 $850
Small Contractor: 1 Employee /
$75,000 (outside) $224 $100 $125
Contracting Firm: 3 Employees /
$225,000 (outside) $224 $325 $425
Ecommerce/Wholesale: 25
Employees/$4,000,000 $1,687.50 $5,988 $7,975
Estimated Totals $13,098 $49,755 $49,560

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Chart 10: Average Revenue Yield Models By Business Category $-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000

CONTRACTORS GENERAL

COMMERCE/RETAIL

PROFESSIONAL RENTAL (COMMERCIAL &

RESIDENTIAL)

SERVICE
Current Model 2 Model 3

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Chart 11: Equity of Models

0.290000%

0.090000%

0.050000%

0.150000%

0.140000%

0.080000%

0.060000%

0.080000%

0.150000%

0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35%
Large Business
Medium Business
Small Business
Current vs. New Effective Tax Rates
Current Tax Structure
Model 2 Tax Rate Structure
($1.50/1000)
Model 3 Tax Rate Structure

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Appendix A
Code Review

1. Code Section 14.10.10 Definitions
We recommend that the Town update the definition of “gross-receipts” to clarify that transfers from one entity or partner to another, are only excluded if the receiving partner (or entity) has a business license in the Town.

We also recommend that to deal with the rise of start-ups and ecommerce that the definition of “Gross Receipts” should include the cost of operations. For example, if a business is in start-up-mode and has $10,000 in gross receipts but has significant venture capital backing and thus has a cost of operations of $1,000,000, that business should use the cost of operations as its gross-receipts and pay the tax on that measure. While this change would add some complexity to the application and renewal process it improves the flexibility of the code for future changes in the economy.

2. Code Section 14.10.015 Statement of Purpose
We commend the Town for having a clear statement that the purpose of the business license is for revenue purposes.

This clear statement can be vital in shaping administrative ease and avoiding potential legal issues with intertwining the revenue-based and regulatory measures.

3. Code Section 14.10.025 Branch Establishments
We recommend that this section be amended to add language clearly addressing what happens if two different business activities, having two different classifications, occur at the same location. Generally, municipalities either allow apportionment or require the higher of the two classifications to apply.

4. Code Section 14.10.03 Exemptions.

We commend the Town for the flexible definition of exemptions in subparagraph (a)(1). In that same spirit, the Town may want to consider combining the exemptions in subparagraphs(a)(2)-(4) with the clearer definition of a non-profit entity in subparagraph(a)(5).

Additionally, paragraph (b) contains a small business exemption. And section 14.20.125 contains one for contractors. We recommend consolidating the exemptions or at least placing them together here in this section. It will make it easier for your administrative staff and the community to find and apply the exemptions.

5. Code Sections 14.10.035, 14.10.040, and 14.10.045—Signature requirements We recommend that you remove the signature requirement. It is of little value—you already have a provision indicating the statements are not binding against the Town—unless you want that ability to prosecute people for perjury. You may also consider removing any requirements for certification or sworn statements, etc., for the same reason. Both requirements can make it difficult to use online processing and thus can increase administrative complexity.

6. Code Section 14.10.040 True-up
Paragraph (b) gives the taxpayer until May 15th to file their true-up. Given that the same information is used for the trueup and the renewal, which is due in January, we recommend that you move the true-up to January to make it easier for your administrative staff and your taxpayers.

7. Code Section 14.10.055 Confidentiality
You may want to consider that your current language here prevents you from sharing information with internal departments. Additionally, it might be good to clarify that some form of aggregated reporting is allowed.

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8. Code Sections 14.10.060, 14.10.065, and 14.10.115
In these sections, the Town requires approvals or administrative hearings to go immediately to the Council. We recommend that the code be changed to have the first approvals and hearings conducted by the Town Manager. This can preserve confidentiality for the taxpayer and provides another opportunity for resolution before bringing the matter before the Town Council.

9. Code Section 14.10.075 Delinquencies
It may be difficult to require that no license be issued if they are delinquent. This is particularly true since the purpose of the license is just signify payment of tax and not to authorize the conducting of a business. Put another way, to refuse payment for a current period when back periods are owed may expose the taxpayer to additional penalties. This may be the intent but, if not, the Town may want to consider the cost of this policy. Additionally, we recommend that you add language allowing the Town to recoup the cost of collection.

10. Code Section 14.10.095 Term
You may want to consider clarifying that licenses expire at the end of the duration (i.e. a calendar year and calendar month) and not just at the end of year as stated in this section.

11. Code Section 14.10.105 Transferability
We recommend that you not allow transfers. A change of address may require new zoning or other reviews. We recommend that you require a new application when a business relocates.

12. Code Section 14.10.110 Duplicate License Charges
We recommend that the Town remove the charge for a duplicate. It may make sense to charge it if the requests become excessive but generating a certificate with most modern systems is not sufficiently expensive to justify the overhead of tracking and charging this cost.

13. Code Section 14.10.125
We recommend that Town remove the duty to inspect and replace it with the right and the discretion to inspect. It is unlikely that the Town will inspect all businesses. The cost is too high and the benefits are too low. We also recommend that you add language clarifying that the Finance Director can designate someone else to do this function in their place.

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Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/21/2022
ITEM NO: 23
DATE: June 16, 2022
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Maintain a Ban on Cannabis Businesses in Los Gatos and Consider a Ballot Measure to Tax Cannabis Businesses
RECOMMENDATION:

Maintain a ban on cannabis businesses in Los Gatos and consider a ballot measure to tax cannabis businesses.

BACKGROUND:

While California legalized cannabis (marijuana) with the passage of Proposition 64 in 2016, it is up to each municipality to decide if and how commercial cannabis retail, manufacturing, cultivation, events, and/or testing should be conducted in their communities.

To date, the Town of Los Gatos has not allowed for commercial cannabis retail, manufacturing, or cultivation. In the Bay Area region, the cities of San Jose, Santa Cruz, Capitola, Scotts Valley, Mountain View, Brisbane, Foster City, Half Moon Bay, Pacifica, San Carlos, South San Francisco, San Francisco, Alameda, Albany, Berkeley, Emeryville, Hayward, Livermore, Oakland, Piedmont, Pleasanton, San Leandro, and Union City have allowed some form of commercial cannabis operations.

Background on California Cannabis Legislation is available at the California Cannabis Portal at https://cannabis.ca.gov/. While the legislation begins at the State level, each City and Town has the opportunity to enact its own cannabis laws and regulations based on many factors, including what's best for a particular community as a whole; provided those regulations do not conflict with State law.

At the January 26, 2021, Town Council meeting on Strategic Priorities, Council gave direction to start obtaining community feedback in order for Council to determine whether to amend its Municipal Code to allow commercial cannabis businesses in Los Gatos.

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PAGE 2 OF 9
SUBJECT: Maintain a Ban on Cannabis Businesses in Los Gatos and Consider a Ballot Measure to Tax Cannabis Businesses
DATE: June 16, 2022
BACKGROUND (continued):

In response, the Town held approximately ten public meetings with various community groups and Town Boards/Commissions/Committees to obtain input on whether the Council should consider potential amendments to the Town’s cannabis regulations. At these public meetings, the feedback included an interest in allowing cannabis businesses in Town, concerns and uncertainty about allowing cannabis operations and the potential health and safety impacts, and interest in the potential new source of tax revenue. In addition, the Town conducted an unscientific Survey Monkey poll to solicit general input from the public (results are included with the January 18, 2022 Council staff report) with the majority of responses opposed to allowing cannabis businesses.

On January 18, 2022, the Town Council voted to continue to explore possible taxation and asked staff to return to the Council with a consultant scope of services focused on community outreach, a scientific survey, and evaluation of potential taxation and revenues.

On February 1, 2022, the Town Council approved the Cannabis Consultant Services Proposal submitted by Hinderliter, deLlamas & Associates (HdL) Companies and authorized the Town Manager to execute the agreement. The scope included the preparation of a tax revenue analysis, assessment of a cost recovery program for the permitting of cannabis businesses, comparable data from other California jurisdictions, and assistance with community outreach.

This report provides the results of the HdL work and other staff analysis.

DISCUSSION:

Consultant Study
HdL completed the requested consultant report (see Attachment 1). The revenue analysis is based on an estimated service area and its population that could be served by a cannabis retail storefront in Los Gatos. The consultants further refined the estimates assuming leakage to licensed retailers outside of Los Gatos and to the black market. Figure 5 depicts a range of $12.0 million to $27.0 million of adjusted gross receipts for a storefront in Los Gatos.

Based on this range of adjusted gross receipts, HdL applied different tax rates to estimate potential revenue from a tax. At 4%, tax revenues could range from $493,000 to $1.085 million.

At 5%, the range is $616,000 to $1.35 million and at 7%, the range is $863,000 to $1.9 million.

These estimates are for tax revenue only.

The report also describes the cost recovery opportunity for licensing and permitting establishments. Town services beyond licensing and permitting (e.g., calls for Police or Code Compliance services) are discussed under Public Safety Considerations and Impact to Other Town and County Services. These service costs would need to be deducted from the tax

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PAGE 3 OF 9
SUBJECT: Maintain a Ban on Cannabis Businesses in Los Gatos and Consider a Ballot Measure to Tax Cannabis Businesses
DATE: June 16, 2022
DISCUSSION (continued):
revenue to determine a net revenue estimate. As discussed below, it is difficult to quantify the net fiscal impact of a dispensary; however, a qualitative understanding of potential impacts is important in this policy discussion.

The HdL report has useful comparable data for other jurisdictions in terms of regulatory programs, zoning parameters, tax rates, and permit fees.

Public Safety Considerations
The Los Gatos-Monte Sereno Police Department researched the impacts of marijuana dispensaries to law enforcement and within similar sized communities throughout Monterey County. The general conclusion did not suggest any significant increase in calls for service to law enforcement directly related to dispensary operations; however, there have been preliminary trends of more serious crimes, civil challenges, and concerns indirectly associated with dispensaries as they foster an opportunity for illegal behavior and civil conflict related to tax evasion, real estate crime, property management challenges, and other illegal items.

These criminal activities sometimes occur because of the limited resources of local law enforcement to provide ongoing oversight to dispensary operations. Legal dispensaries generally have a very inviting and professional appearance on the exterior and extensive security measures. Many legal dispensaries in the jurisdictions visited had surveillance cameras, multiple armed security guards, and periodic inspections. Unfortunately, these mechanisms do not always deter illegal activities and provide a false sense of security against criminal elements. The LGMSPD is conducting concerted efforts to provide adequate staffing to meet the community’s needs and the additional need for oversight of the dispensaries will likely not be sufficient for the Department’s current staffing models, leaving the Town particularly vulnerable to potential illegal activities.

To date, the LGMSPD has experienced minimal law enforcement demand related to cannabis, including calls pertaining to operating a motor vehicle under the influence, sales, or use of the substance. Current narcotic enforcement is focused on Methamphetamines (Meth), Heroin, Fentanyl, and other opiate-based medicines. If law enforcement needs increase related to marijuana, there will be increased impacts in addition to staffing. For example, if marijuana is collected as evidence and the case is not filed by the District Attorney, the Police Department must return the product in its pre-existing condition. Since cannabis must be stored in a manor to preserve it, there are administrative and engineered controls required for storing the cannabis evidence which can potentially result in financial implications for the Town.

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PAGE 4 OF 9
SUBJECT: Maintain a Ban on Cannabis Businesses in Los Gatos and Consider a Ballot Measure to Tax Cannabis Businesses
DATE: June 16, 2022
DISCUSSION (continued):

In the event of a cannabis-related incident, it is estimated that the staff impact would involve three Officers, one Sergeant, one Dispatcher, one Community Service Officer, and one Captain.

The cost per hour of these positions is approximately $1,053 (salary and benefits prior to the implementation of the recent bargaining agreements). A cannabis tax could potentially provide cost recovery of law enforcement response and fund a dispensary oversight program. The fiscal impacts of a serious crime indirectly related to dispensary operations would preoccupy the Investigations Division, Patrol, and professional staff and are difficult to estimate.

Conversations with staff from the Monterey County Cannabis Program and other law enforcement agencies revealed that Santa Clara County does not have a trained and dedicated framework to monitor and provide law enforcement oversight of dispensary operations. The Monterey County Cannabis Program has grown from 6 to 28 FTEs in five years specifically for management of commercial cannabis to address regulation, policy, enforcement, and education. Santa Clara County does not have a similar multi-disciplinary team for oversight of commercial cannabis. Elements of a law enforcement oversight program include:
 Toxicity testing – to verify that the product is contaminant free (no mold or harmful chemicals);
 Dispensary product monitoring – to verify proper labeling to inform the consumer of the correct THC amount and not labeled in a manner to entice minors (e.g., Birthday Cake or Orange Crush);
 Monitoring of the Marijuana Enforcement Tracking Reporting Compliance (METRC) - California Cannabis Track-and-Trace System designed to track the product from plant to sellable in-store product;
 Liaison with Department of Cannabis Control – to ensure compliance of Medicinal and Adult Use Commercial Cannabis Regulations (CCRs);
 Legal counsel available and knowledgeable about dispensary local, state, and federal laws to guide the local jurisdictions in their work with the dispensaries’ legal teams;  Public Health Department coordination; and
 Forensic Accountant – oversight of taxes and other monetary monitoring/auditing.

Other law enforcement considerations include:
 California does not currently have any Police Officer Standards and Training (POST) course(s) available to teach local law enforcement about commercial cannabis businesses and regulations, State laws, interactions with dispensaries, etc. Therefore, LGMSPD would be on its own to learn about the industry and relevant laws;  It is understood that Los Gatos and Monte Sereno residents currently benefit from cannabis delivery services that operate out of other jurisdictions. With a retail

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PAGE 5 OF 9
SUBJECT: Maintain a Ban on Cannabis Businesses in Los Gatos and Consider a Ballot Measure to Tax Cannabis Businesses
DATE: June 16, 2022
DISCUSSION (continued):
storefront or delivery business in Los Gatos, the risks increase with the transportation of product valued potentially up to $1.0 million into Town. Based on the consultant analysis, it is unlikely that commercial scale cultivation would occur in Town;  Increased number of people transporting more marijuana throughout Town due to access and supply in Town; and
 Limited Town resources to educate youth on the risks associated with cannabis (the Town currently has one part-time School Resource Officer shared between Los Gatos Unified School District and the Los Gatos Union High School District).

Based on this information, staff is recommending that the Town Council maintain the ban on cannabis retail sales. Even with a tax to offset some enforcement costs, the Town would be challenged to address the potential accompanying law enforcement issues and additional necessary oversight resources.

Impact on Other Town and County Services
If the Town Council is interested in allowing cannabis retail store(s) and/or delivery, the Town would need to develop its own licensing, permitting, and regulatory program, and adopt an Ordinance amending the Municipal Code. In Attachment 1, HdL explained the components of a regulatory program and that the costs associated with its implementation could be borne by the cannabis businesses seeking to locate in Los Gatos.

Once established, the Town would likely have a monitoring program to ensure compliance with the Town ordinance and the Business and Profession Code for cannabis business called Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA). To the extent that non-law enforcement complaints are submitted to the Town, Code Compliance would be responsible to respond, inspect, and determine appropriate action for the complaint. A cannabis tax would bring in revenue that would offset the response costs.

There may be other impacts to other services; however, it is difficult to anticipate all of them. It is also likely that County health, behavioral health, and/or social services may also experience increased demands with additional storefronts and/or delivery businesses.

Scientific Survey
The Town is working with a professional consultant, ETC Institute, to conduct a scientific cannabis community survey. ETC mailed out the survey to a random sample of 2,100 households in Los Gatos. These households were selected at random from an address list of all residences located within the Town's boundaries. The consultant offered these households

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PAGE 6 OF 9
SUBJECT: Maintain a Ban on Cannabis Businesses in Los Gatos and Consider a Ballot Measure to Tax Cannabis Businesses
DATE: June 16, 2022
DISCUSSION (continued):
three ways to complete the survey: by mail; online; or phone. Follow up will occur until at least 300 surveys are returned. If more than 300 are returned, the larger number will be analyzed at no additional cost to the Town. With 300 completed surveys, the results will have a precision of at least +/- 5.6% or a 95% confidence level. The consultant will ensure the results reflect the community's demographics, ensuring results are statistically valid, and will provide the Town with accurate data.

The results of the survey are expected to be distributed in an Addendum on Monday, June 20 or Desk Item on June 21.

Pending State Legislation
Senator Scott Wiener authored SB 1186 which originally would have restricted municipalities from banning medical cannabis retail sales. The bill has since been amended to eliminate bans of medical cannabis delivery services only. This bill would also provide that the California Environmental Quality Act (CEQA) does not apply to specified actions taken by a local jurisdiction relating to medicinal cannabis businesses, including the repeal of any local regulation prohibiting the operation of medicinal cannabis businesses. The bill is currently in the Assembly for consideration.

Should the bill pass and the Governor signs it, the Town would be obligated to establish a regulatory program for medical cannabis delivery businesses. This means that the Town Council would need to identify appropriate zoning districts, distances from sensitive uses, permitting requirements, and a monitoring program. All of these parameters would be considered during public meetings regarding the introduction and adoption of an Ordinance to the Town Code. Permitting and application fees would be required to be considered in the Town’s Fee Resolution, also requiring a public meeting.

Ballot Measures
Throughout the discussion of cannabis businesses, two potential ballot measures have been suggested.

The first is a ballot measure asking the question if cannabis businesses should be allowed in Los Gatos. Putting this question to the voters requires a simple majority of the Council. When jurisdictions ask these questions, typically a draft Ordinance containing the proposed regulations is included so the public knows exactly what it is voting on.

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PAGE 7 OF 9
SUBJECT: Maintain a Ban on Cannabis Businesses in Los Gatos and Consider a Ballot Measure to Tax Cannabis Businesses
DATE: June 16, 2022
DISCUSSION (continued):

The second is a ballot measure to establish a tax on cannabis businesses. As a tax measure, it requires a 4/5 vote of the Town Council to place it on the ballot. If this is of interest to the Town Council, the measure would need to specify the level of tax (e.g., 4% of gross sales receipts).

For a tax measure to be placed on the ballot, it is not required for the voters to decide the land use question. The Town Council is the elected body that makes land use policy and legislative decisions regarding the General Plan, zoning, allowable uses, requirements for allowed uses, number of allowed cannabis businesses, etc. For most jurisdictions, land use issues are not determined by the voters because if circumstances change or adjustments are needed, such changes can only be considered with another ballot measure.

With the November 2022 election scheduled, the last regular Council meeting to add an item on this ballot is at its August 2nd meeting.

Community Outreach
The Town conducted a community workshop on May 4, 2022 at 7:00 p.m. via teleconference.

The workshop provided an opportunity for the community to learn more about cannabis regulation and share input regarding the potential for commercial cannabis in Los Gatos. The materials from the meeting are available at www.losgatosca.gov/cannabis.

Though lightly attended, the community answered several Zoom poll questions:
 55% said cannabis retail sales should not be allowed in Los Gatos  62.5% preferred delivery only cannabis business(es)
 Of various non-residential zoning districts, 60% preferred the Controlled Manufacturing Zone (generally located along University Avenue north of Vasona Park)  70% preferred a distance of 1,200 feet from sensitive uses (e.g., schools and commercial day care) which is greater than the State distance of 600 feet (see Attachment 2 for a map of the State buffer areas)
In addition to the Town’s workshop, staff has also met on multiple occasions with residents who expressed their opposition to cannabis businesses in Town.

The dedicated webpage also provided a unique email address for public comments:
[email protected]. Through this address and others, the Town has received numerous communications on this issue (see Attachment 3). The majority of the correspondence is opposed to cannabis storefronts in Los Gatos.

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PAGE 8 OF 9
SUBJECT: Maintain a Ban on Cannabis Businesses in Los Gatos and Consider a Ballot Measure to Tax Cannabis Businesses
DATE: June 16, 2022
DISCUSSION (continued):

Policy Questions/Alternatives for the Town Council
As Council continues its exploration of considering the allowance of cannabis businesses, the following questions may be useful during the deliberation. For each question, the major next steps are identified.
 Should the Town maintain its ban on cannabis businesses? If yes, then the exploration of land use regulations and permitting for cannabis businesses is not needed. If future State law mandates local jurisdictions to allow medical cannabis delivery services or other cannabis business types, then the Council would need to develop regulations.  Should the Town consider retail storefronts, delivery only, or both? If the Council is interested in this option, then a study session should be scheduled to identify the Council’s land use parameters for these uses. A draft Ordinance would be prepared based on these parameters. The Town would also need to develop its operational regulations for the businesses, including the application and selection process.  Should the question of whether to allow cannabis businesses go before the voters? If the Council would like to move forward with this option, then staff would return to the Council on August 2nd with proposed ballot language. If the Council would like the voters to decide on a cannabis land use Ordinance, then the Council would need to convene in July to work on the Ordinance in time to place it before the voters.  Should the Council consider placing a ballot measure to establish a tax on cannabis businesses? Regardless of its decision on the land use question, the Council may want to consider a tax for the 2022 ballot. Even if Council would like to maintain its ban, a tax could be in place in the event State law requires municipalities to allow medical cannabis delivery businesses or other types of cannabis businesses in the future. If the Council is interested in this option, then staff would return with proposed ballot language at the August 2nd meeting. At that time, the Council can determine a specific tax rate.

CONCLUSION AND NEXT STEPS:

Staff is looking forward to Council’s discussion and direction on cannabis businesses. The Council’s direction will determine appropriate next steps as discussed above.

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PAGE 9 OF 9
SUBJECT: Maintain a Ban on Cannabis Businesses in Los Gatos and Consider a Ballot Measure to Tax Cannabis Businesses
DATE: June 16, 2022
COORDINATION:

The preparation of this report was coordinated with the Town Attorney’s Office, Police Department, Community Development Department, and Finance Department.

FISCAL IMPACT:

Depending on the alternative the Council would like to pursue, there are fiscal impacts associated with cannabis businesses in the Town as discussed in this report. A potential tax revenue may offset some of the costs of municipal services.

A single ballot measure costs approximately $58,256 and the Proposed Fiscal Year 2022/23 Operating Budget includes funding for potential measures.

ENVIRONMENTAL ASSESSMENT:

Council direction on this item is not a project defined under CEQA, and no further action is required. If Council would like to allow cannabis businesses, then an ordinance would need to be drafted and it would need environmental clearance.

Attachments:

1. Consultant Study

2. Map of State Buffer Areas

3. Public Comment

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Delivering Revenue, Insight
and Efficiency to Local Government
Commercial Cannabis in Los Gatos:

Potential Revenues, Regulatory Costs, and
Comparative Data
Prepared for
the
Town of Los Gatos
June 16, 2022

Page 899 ends

2 Introduction
The Town of Los Gatos currently prohibits the establishment or operations of any commercial cannabis businesses within town limits. In early 2022, the Town Council engaged the services of HdL Companies (HdL) to prepare a fiscal impact analysis for allowing commercial cannabis businesses to operate within Los Gatos. The analysis is intended to inform the Council’s decision‐making process regarding whether to allow commercial cannabis activity locally, the costs associated with regulating cannabis businesses, and potential revenues that could be generated from adopting a cannabis tax measure.

The fiscal impact analysis is broken down into three sections:
 Revenue Analysis
 Expenditure Analysis
 Comparison to Other Jurisdictions
Additional information regarding comparable jurisdictions can be found in Attachment A to this report.

Revenue Analysis
HdL’s revenue analysis is focused on the potential impacts of allowing commercial cannabis retailers in the Town of Los Gatos. Consideration for other cannabis license types – collectively referred to as “wholesalers,” which includes cultivators, manufacturers, distributors, and testing laboratories – is not included in this report. Should the Town of Los Gatos wish to explore permitting wholesale operators locally, HdL may update the revenue projections based upon the type and number of businesses desired.

Pursuant to State law, commercial cannabis retailers are authorized to sell cannabis goods directly to consumers, either through delivery or on‐site purchases. In contrast with wholesalers, who supply cannabis products to the statewide market, retailers are the only cannabis business type that specifically servesthe local community. As a result, the ideal number of retailersfor a community will be proportional to the local population of the host city and the surrounding service area.

The Town of Los Gatos is situated on the west side of Santa Clara County at the base of the Santa Cruz Mountains. The City has a population of 33,529 peoplei and sits at the southwest edge of Silicon Valley.

Adjacent and nearby cities and communities include the cities of San Jose, Campbell, Monte Sereno and Saratoga and the unincorporated areas of Cambrian Park and Lexington Hills.

The City of San Jose is the only jurisdiction in all of Santa Clara County that currently allows licensed commercial cannabis businesses of any kind. The Department of Cannabis Control (DCC) currently shows 16 licensed cannabis retailers located within the City, of which 8 are storefront retailers and 8 are microbusinesses which may conduct a variety of cannabis business activities, including retail. All San Jose storefront cannabisretailers are allowed to also conductsales via delivery. The locations of these cannabis retailers are shown in Figure 1.

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3 Though the region is already reasonably served by licensed storefront cannabis retailers located in San Jose, there are also a number of cannabis delivery services operating in the area. Figure 2 shows a map of cannabis delivery providers, advertised on the cannabis platform Weedmaps as of May 2022, available for at‐home deliveries in Santa Clara County. Providers are displayed by the areas they deliver, rather than their ‘home’ location, so a single delivery service may be represented multiple times on the map.

To determine the potential gross receipts of cannabis retailers located in the Town of Los Gatos we must first identify the approximate area that these retailers would serve. As with any other type of retailer, Figure 1:

Figure 2:

Page 901 ends

4 cannabis retailers are not limited to serving the residents of their host communities. Customers may drive from other nearby cities to reach their nearest store. In addition, cannabis retailers may deliver products within a wider service area.

Retail studies show that 93% of consumers are willing to travel 15 to 20 minutes to make most routine purchasesii
, meaning that storefront retailers in Los Gatos would be able to capture cannabis tax (and salestax) from some portion of the surrounding area. The cities of Monte Sereno, Campbell, and Saratoga all fall within this distance, as do the unincorporated areas of Cambrian Park and Lexington Hills.

In addition, we note that all of the cannabisretailersin the City of San Jose are located East of the Highway 87 corridor, other than one near the airport. This suggests that a broad portion of cannabis consumers in San Jose would likely find it more convenient to travel to Los Gatos to make their purchases. This includes portions of the neighborhoods of Cambrian, Almaden, Blossom Valley, Willow Glen and West San Jose.

For purposes of our analysis, we conservatively estimate that approximately 10% of the population of San Jose falls within the Los Gatos service area.

Because there are no other options for cannabis consumers in the South Bay Area, we anticipate that retailers in Los Gatos may capture some portion of cannabis sales from cities such as Cupertino and parts of Sunnyvale and Santa Clara. The proximity of these other cities is shown in Figure 3, below.

Figure 3:

In Figure 4, below, we have added up the total population of the projected service area for cannabis retailersin the Town of Los Gatos. We estimate the total population of this area at a little under 1.2 million Cities and Communities in the Los Gatos Service Area

Page 902 ends

5 people. However, when we account for only serving a portion of the population of San Jose and Cupertino, the service area population comes down to around 235,000. Dividing that figure by the number of existing retailers serving the area yields a retail density of 14,666 people per retailer.

Figure 4:

Data from the California Department of Tax and Fee Administration (CDTFA) givesthe total cannabis retail sales for each county as well as the sales per capita, derived by dividing the total sales by the population.

From this, we are able to see the relationship between the retail density (population per retailer) and the sales per capita. CDTFA reports $220 million in retail cannabis sales in Santa Clara County (1.9M population) over the last 12 months, which equals sales per capita of $114 per personiii. Applying this to our service area population would yield $27 million dollars in sales.

In Figure 5, on the next page, we have provided a general scenario to estimate a reasonable range of cannabis tax revenues that the Town of Los Gatos may be able to generate from a projected 2 licensed cannabis retailers. Starting with our service area population of 234,648 people, we then apply a range of assumptions for the percentage of the population that uses cannabis on a regular basis. These estimates vary from around 10%iv to 13%v
, up to as high as 22%vi. This percentage is influenced by social acceptance of cannabis within the local community. Applying these estimates to our estimated consumer base yields between roughly 23,000 and 52,000 potential cannabis consumers.

Cannabis retailers typically average around 120 customers per dayvii. Data shows that a typical cannabis consumer makes a purchase of $73 with an average frequency of twice a monthviii. Applying this to our range of cannabis consumers yields monthly sales of between $3.4 million and $7.5 million, which works out to annual gross receipts of between $41 million and $90 million.

However, the existing retailers in the City of San Jose will likely continue to capture some portion of sales, as will licensed and unlicensed cannabis delivery services operating throughout the area. To account for this, we have assumed an additional 30% leakage for each of these markets, which brings our estimate of total gross receipts down to a range of $12 million to $27 million.

Applying our recommended retail cannabis tax rates to this range of total gross receipts yields a range of revenue projections. Applying HdL’s recommended “low” tax rate of 4.0% would yield between $490,000 and $1.1 million in annual cannabis tax revenue for the Town of Los Gatos, with a best estimate of City/Community Population Est. % in
Service Area
Adjusted
Population
Retailers Population
Per Retailer
Cambrian Park 3,719 100% 3,719 0 N/A
Campbell 43,959 100% 43,959 0 N/A
Cupertino 60,381 25% 15,095 0 N/A
Lexington Hills 2,492 100% 2,492 0 N/A
Los Gatos 33,529 100% 33,529 0 N/A
Monte Sereno 3,479 100% 3,479 0 N/A
San Jose 1,013,240 10% 101,324 16 6,333
Saratoga 31,051 100% 31,051 0 N/A
Service Area Population 1,191,850 234,648 16 14,666
Service Area Population

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6 $640,000. Applying a rate of 5.0% would yield between $617,000 and $1.4 million, with a best estimate of $800,000 in annual revenue. Applying HdL’s recommended “maximum” rate of 6.0% would yield between $860,000 and $1.9 million, with a best estimate of $1.1 million in annual cannabis tax revenue for the Town.

In addition, retail cannabis sales would also generate between $123,000 and $271,000 in Bradley‐Burns sales tax revenue for the Town. These estimates are all shown in Figure 5, below.

Figure 5:

The Costs of Permitting, Regulating and Enforcing Cannabis Businesses HdL’s expenditure analysis is intended to provide a general overview of the types of costs that the Town of Los Gatos may incur through the permitting, regulating and enforcing of cannabis businesses. Costs include, but are not limited to, the following:
 Costs associated with the development of a commercial cannabis regulatory program:
o Initial outreach and exploration
o Ordinance development
o Environmental review
o Meeting costs and development of staff reports and other materials o Development of application procedures and guidelines
o Development of appropriate fees
o Development of regulatory protocols and administrative procedures Low
Estimate
"Best"
Estimate
High
Estimate
Population of Los Gatos 33,529 33,529 33,529
Population of surrounding service area 201,119 201,119 201,119 Total population of service area 234,648 234,648 234,648 Percentage of population that uses cannabis 10% 13% 22% Number of cannabis users 23,465 30,504 51,623
Average transaction amount $73 $73 $73
Transaction frequency (per month) 2 22
Monthly gross receipts $3,425,864 $4,453,624 $7,536,902 Annual gross receipts $41,110,373 $53,443,485 $90,442,821 Est. leakage to other licensed retailers (30%) $8,222,075 $10,688,697 $18,088,564 Est. leakage to black market (30%) $20,555,187 $26,721,743 $45,221,411 Adjusted annual gross receipts $12,333,112 $16,033,046 $27,132,846 Cannabis business tax rate:

4.00% $493,324 $641,322 $1,085,314

5.00% $616,656 $801,652 $1,356,642

7.00% $863,318 $1,122,313 $1,899,299
Bradley‐Burns 1.0% local sales tax $123,331 $160,330 $271,328 Revenue Projections for Cannabis Retailers

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7  Costs associated with the review and permitting of individual cannabis businesses:
o Development of an RFP for cannabis businesses (if utilized) o Conducting application reviews and applicant interviews o Background checks
o Land use permitting and entitlements, including CUP hearings (if needed) o Processing building permits
o Pre‐license inspections
o Consultant costs associated with any of the above
 Costs associated with ongoing monitoring and permit renewals:
o Regulatory compliance inspections
o Other routine inspections that may be required (public health, fire department, etc.) o Annual revenue audits to ensure proper reporting and remittance of fees/taxes o Permit renewal processing
o Program administration
 Costs associated with enforcement and appeals:
o Regulatory enforcement of any findings of non‐compliance o Processing and conducting any appeals of enforcement actions o Law enforcement actions against licensed cannabis businesses where necessary Each of the costs identified above may be fully offset through regulatory fees charged to cannabis businesses. Typically, after approval of a regulatory ordinance, local jurisdictions will adopt a cannabis fee schedule that represents 100% full cost recovery for administrative oversight and enforcement of the cannabisindustry. These fees are charged to licensed cannabis business owners, applicants and licensees, who are the direct beneficiaries of the commercial cannabis program.

Beneficiaries of the cannabis program will vary by regulatory activity. For example, development of the regulatory program benefits those who are permitted to operate a business that would otherwise be prohibited. Processing of applications and land use permits benefits the applicants of the proposed businesses, regardless of whether they ultimately receive a license. The cost of monitoring existing businesses for compliance and processing permit renewals benefits the business as it allows them to continue to operate.

Because the Town is still in the exploratory phase of developing a cannabis ordinance, it is currently unknown how many commercial cannabis businesses might be allowed, what methodology will be used to select eligible businesses, in what locations they will be permitted, and under what level of oversight they will be regulated. Given this uncertainty, it is not yet possible to calculate the specific permitting and regulatory costs that Town will incur in developing and implementing a cannabis program, or the fees necessary to recover those costs. As a result, the simplest way of estimating a range of possible Town expenditures is to conduct a survey of various cost recovery fees that have been adopted by other jurisdictions.

Fees are generally divided into three categories that include; 1) initial application fees; 2) permitting and land use entitlement fees; and 3) annual regulatory fees. Each of these general categories may include

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8 multiple feesto cover distinct costs orservices, not all of which would be applied in every case. Ultimately, fees will vary by jurisdiction, depending upon a variety of local factors.

Initial application fees can vary greatly depending upon the details of the application process required by the jurisdiction. Some cities or towns choose not to limit the number of cannabis businesses or to process applications on a “first‐come, first‐served” basis. Others may solicit applications for a limited number of permits, which will then be reviewed on either a quality assurance (pass/fail) basis or merit‐based (high‐ low score) basis. Final selection of permittees may be performed either through a discretionary process or via lottery, where permittees are chosen at random from a pool of qualifying applicants.

The table below provides a comparison of application fees charged per cannabis business across various jurisdictions:

In this table, HdL has identified average cannabis business license application fees for 15 cities from around California. The fees range from a high of $28,189 for the City of Culver City, to a low of $3,011 for the City of Oakland. Generally, these feesrepresent the full cost, per applicant, for reviewing and selecting businesses to proceed through the permitting process. As such, the fees provide a rough estimate for the per business cost the Town of Los Gatos could expect for developing and administering a cannabis application process.

Once applicants have been selected to move forward into the permitting process, the land use entitlement and building permit process is no different than it would be for other, similar businesses. The amount of Town staff time (and thus the cost) may vary greatly depending upon the specific location, needed construction or tenant improvements and other building requirements. As with any other construction process, the costs associated with site plan review, conditional use permits, facility plan check, and on‐ site inspections would be fully recovered through zoning, building and fire review fees.

Agency (Year of Adoption) 1 Application Fee
Culver City (2018) $28,189
San Luis Obispo (2018) $24,744
Chula Vista (2019) $24,063
Redwood City (2018) $22,604
Goleta (2019) $14,901
Santa Ana (2017) $14,282
Palm Springs (2017) $10,984
Oceanside (2021) $8,452
Placerville (2019) $8,336
Watsonville (2020) $7,900
Modesto (2018) $6,380
San Jose (2017) $5,461
Vista (2019) $4,318
Salinas (2017) $3,145
Oakland (2017) $3,011
Average Application Fee: $12,451
(1) Year of adult‐use cannabis program adoption.

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9 Annual permit fees vary significantly from jurisdiction to jurisdiction, based upon the desired level of regulatory oversight and administration. Jurisdictions may require that businesses submit to one or more regulatory compliance inspections per year, as well as annual cannabis revenue audits to ensure the business is reporting and remitting the proper portion of gross receipts to the host city. In addition, some jurisdictions choose to place certain regulatory roles within law enforcement, which may include POST certified officers. This can greatly increase the cost for these regulatory services.

The table above provides the annual regulatory permit fees for the same 15 cities cited previously. Fees range from a high of $147,645 for the City of San Jose to a low of $3,700 for the City of Watsonville. We note that the regulatory fees for some jurisdictions may vary depending upon the specific types of cannabis businesses allowed. In such cases, the table displays the highest cost. Among this sample set, the average annual permit fee is $27,731 per year. However, this average is skewed by the fees for the City of San Jose, which are more than three‐times higher than the next highest fees. We regard this as an outlier as it is not representative of the overall range. When we exclude the fees from the City of San Jose, the average annual permit fee among our sample set of California cities and counties comes down to $19,166. We believe this lower figure is more representative of actual annual regulatory costs per business.

Annual permit costs reflect the direct per‐business cost for each jurisdiction to provide its desired level of regulatory oversight for permitted cannabis businesses, including regulatory monitoring and inspections, revenue audits, annual permit renewals and overall administration of its cannabis businessregulatory and tax program. Where the Town falls within the range of possible outcomes identified in the table above will depend upon the specific design of the local cannabis regulatory program.

Agency (Year of Adoption) 1 Annual Permit Fee
San Jose (2017) $147,645
San Luis Obispo (2018) $41,065
Chula Vista (2019) $31,275
Redwood City (2018) $29,530
Culver City (2018) $27,771
Placerville (2019) $22,841
Modesto (2018) $21,740
Vista (2019) $19,967
Oakland (2017) $16,676
Santa Ana (2017) $12,529
Goleta (2019) $11,879
Palm Springs (2017) $10,984
Salinas (2017) $9,854
Oceanside (2021) $8,511
Watsonville (2020) $3,700
Average Annual Permit Fee: $27,731
(1) Year of adult‐use cannabis program adoption.

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10 In addition to direct regulatory costs, the Town may incur additional impacts to the community through externalities associated with cannabis businesses. These externalities may include, but are not limited to:
 Traffic impacts
 Public health impacts
 Public safety impacts
 Nuisance impacts
Due to limited research available in these areas, HdL is not able to provide cost projections for the potential negative externalities identified above. According to recent surveys of available research on cannabis legalization in the US, “evidence is inconsistent and, in some cases, inconclusive regarding how recreational cannabis legalization affects outcomes significant to public health, including cannabis use, cannabis use disorder, cannabis related hospitalizations and poisonings, driving safety, and other substance use.” Depending upon the study, findings may vary from “significantly positive, significantly negative, to insignificant relationship” between cannabis legalization and various public health outcomes.ix This lack of available research is caused, in part, by the ongoing classification of cannabis as a Schedule I controlled substance, which limits funding opportunities available to researchers studying cannabis related topics.

Similarly, there is little consensus regarding the public safety impacts from allowing licensed cannabis businesses to operate locally. Some studies have found an association between the density of cannabis retailers and neighborhood crime rates.x
Other studies have found a negative relationship between dispensary allowances and property crime rates.xi One study even found that cannabis retailers closings were associated with increases in crime in the surrounding areas.xii Due to these inconsistent findings, HdL is not in a position to provide the Town with cost estimates for the broader social and public health impacts of transitioning consumers from the illicit market to the licensed and regulated cannabis marketplace.

Comparison to Other Jurisdictions
The following analysis provides additional information on nine cannabisregulatory programsin California.

The jurisdictions were selected due to their proximity to the Town, and/or the fact that they share similar demographic characteristics to Los Gatos (e.g. population, density, income level, etc.). The regulatory programs include:
 City of Burlingame, CA
 City of Pacifica, CA
 City of Martinez, CA
 City of Fairfax, CA
 City of Goleta, CA
 City of Novato, CA
 City of Mountain View, CA
 City of Encinitas, CA
 City of Santa Barbara, CA

Page 908 ends

11 The goal of the analysis is to provide Town Council with a summary of key policy decisions made by other jurisdictions during the development of their local cannabis regulatory programs. This information may serve as a reference point for Town policymakers when deciding; 1) whether to adopt a cannabis program; and 2) what provisions to include/exclude in a regulatory ordinance.

Categories of comparison include:

1. Method of Program Adoption

2. Permitted License Types

3. License Caps

4. License Issuances

5. Licensing Process

6. Zoning Requirements

7. Sensitive Use Buffers and Distances

8. Cannabis Business License Tax Rates
Findings from the analysis can be found in Attachment A to this report. A summary of key observations from the analysis is provided below:

Council Adoption vs. Citizen Initiative: Most of the jurisdictions identified for comparison adopted their cannabis programs through Council action. HdL has observed a recent uptick in the number of small jurisdictions dealing with voter driven ballot initiatives to legalize commercial cannabis activity (e.g.

Redondo Beach, El Segundo, Dana Point, etc.). However, these efforts appear mostly limited to the Southern California region at this time. Of the comparable jurisdictions identified, only one (1) of the programs was approved through Citizen Initiative (Encinitas). In general, Citizen Initiatives place fewer restrictions on the number, location and operation of cannabis businesses than ordinances that are adopted by City Councils. Citizen Initiatives may only be amended through voter approval, which limit the ability of cities to adjust regulatory requirements for cannabis businesses over time. For this reason, HdL recommends against adopting cannabis programs through the initiative process.

Permitted License Types: Six (6) of the nine (9) cities that HdL analyzed allow multiple business types to operate within their jurisdiction. The most common allowable license types include Retail (9) and Manufacturing (6). The least common allowable license type includes Cultivation (3). This is likely due to the larger footprint required for this activity, and its potential to have a greater neighborhood impact than other use types (e.g. odor, facility design, etc.). Most of the cities analyzed placed a cap on the number of allowable Retail business types. For other license types (i.e. Cultivation, Manufacturing, Distribution, and Testing), cities have generally allowed the market and/or zoning restrictions to dictate the number of licenses issued.

Licenses Issued: For most cities identified, the actual number of cannabis business licenses issued has been less than the total number available. For Retail license types, this is likely due to fact that cities require a significant amount of time to design and implement a competitive application process. The intense industry competition involved in the Retail application process can create delays due to the number of application reviews involved and/or appeals filed by businesses that are unable to receive a license. HdL anticipatesthat all of the jurisdictionsidentified will reach the maximum number of allowable Retail businesses. For non‐Retail businesses (e.g. Manufacturing, Distribution, Testing, etc.), HdL has observed a sharp decrease in demand for these license types due to the oversaturation of the wholesale

Page 909 ends

12 market. As a result, HdL anticipates that the Town of Los Gatos would receive limited interest for these license types, even if the Town Council were to decide to make wholesale license types available to applicants.

Licensing Process: In situations where cities have placed a hard cap on the number of available licenses, different processes have been used to determine which businesses would be eligible to receive a license.

Specifically, cities have used a non‐competitive (1), merit‐based (5), first‐come first‐served (1), and public lottery (2) process. For most local jurisdictions, HdL recommends using a hybrid merit‐based/lottery approach, that allows for initial screening of applicants followed by random selection through public lottery.

Zoning Restrictions: Zoning restrictionsfor cannabis businesses vary by city. Some cities(6) allow cannabis businesses to operate in some combination of Commercial, Industrial and Mixed‐Use zones. Other cities (2) limit cannabis business activity to commercial areas only. One (1) city allows cannabis businesses in Industrial Zones only. Generally, HdL recommends allowing Retail businesses in Commercial Zones, and non‐Retail businesses (cultivation, manufacturing, distribution, etc.) in Industrial Zones only.

Sensitive Use Buffers: The most common types of sensitive‐use buffers recognized by the cities identified are schools, day care centers and youth centers, which are the default buffersrecommended by the State.

Some cities recognize additional buffers, including playgrounds, tutoring centers, and residential zones, which go beyond the minimum State standard. In practice, HdL has observed that the recognition of additional buffers beyond the State default can have the unintended effect of driving up the price of real estate in remaining areas of the Town (i.e. “Green Zones”) that fall outside sensitive use buffer zones.

Additionally, overly restrictive buffer requirements may increase the likelihood of overconcentration of cannabis businesses in areas of the Town that remain eligible for cannabis activity. For these reasons, it is important that Town staff to create “buffer maps” for Town Council consideration, before making any decisions on appropriate buffer distances between cannabis businesses and sensitive uses.

Cannabis Tax Rates: Citiesidentified for comparison have adopted cannabistax ratesthatrange from 3.5% to 6% of gross receipts for Retail, and 0% to 6% for non‐Retail cannabis activity. In addition, once (1) city charges a square footage tax on cultivation, that ranges from $2 to $10 per square foot of canopy, depending on whether to cultivator is licensed for indoor, outdoor, mixed light, or nursery activity. i United States Census Bureau “Quick Facts; Saratoga city, California; Campbell city, California; Los Gatos town, California; Santa Clara County, California; San Jose city, California” Population Estimates July 1, 2021 https://www.census.gov/quickfacts/fact/table/saratogacitycalifornia,campbellcitycalifornia,losgatostowncalifornia ,santaclaracountycalifornia,sanjosecitycalifornia/PST045221 ii Ross Marchant (2014) “Consumers will Travel 17 Minutes to Reach a Local Business” https://www.brightlocal.com/2014/05/01/local‐business‐travel‐times/ Bright Local iii California Department of Tax and Fee Administration “Cannabis Sales by County” https://www.cdtfa.ca.gov/dataportal/dataset.htm?url=CannabisSalesByCounty iv Substance Abuse and Mental Health Services Administration, 2019‐2020 National Surveys on Drug Use and Health https://www.samhsa.gov/data/release/2020‐national‐survey‐drug‐use‐and‐health‐nsduh‐releases

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13 v CBS News (2018) “17 stoner states: Where's marijuana use highest?” https://www.cbsnews.com/pictures/17‐ stoner‐states‐wheres‐marijuana‐use‐highest/9/
vi Christopher Ingraham (April 20, 2017) “How many Americans regularly use pot? The number is, errr, higher than you think” Sacramento Bee http://www.sacbee.com/news/nation‐world/national/article145681414.html vii Eli McVey, et al. (2017) “Marijuana Business Factbook 2017” Marijuana Business Daily viii Eli McVey, et al. (2017) “Marijuana Business Factbook 2017” Marijuana Business Daily ix Cannabis Legalization In the US: Population Health Impacts, Health Affairs Health Policy Brief, July 1, 2021. x Shi, Y., Meseck, K., & Jankowska, M. M. (2016). Availability of medical and recreational marijuana stores and neighborhood characteristics in Colorado. Journal of Addiction, 2016, 1–7. https://doi.org/10.1155/2016/7193740 xi Hunt, P., Pacula, R. L., & Weinberger, G. (2018). High on crime? exploring the effects of marijuana dispensary laws on crime in California counties. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3193321 xii Chang, T. Y., & Jacobson, M. (2017). Going to pot? the impact of dispensary closures on crime. Journal of Urban Economics, 100, 120–136. https://doi.org/10.1016/j.jue.2017.04.001

Page 911 ends

City Method of Adoption Permitted License Types License Cap DCC Licenses Issued(1) Retail Licensing Process Burlingame, CA ‐ City Council Adoption (2021) ‐ Retail Non‐storefront ‐ Retail Non‐storefront: 4 Total ‐ 0 (1 currently under review) ‐ Non‐competitive. Operators Permit & Conditional Use Permit Pacifica, CA ‐ City Council Adoption (2017)
‐ Retail ‐ Manufacturing ‐ Testing
‐ Retail: 6 Total
‐ Manufacturing: No Cap
‐ Testing: No Cap
‐ Retail: 5 Licenses
‐ Manufacturing: 0
‐ Testing: 0
‐ Chronological Order of Date Received.

Martinez, CA ‐ City Council Adoption (2019)
‐ Retail ‐ Manufacturing ‐ Distribution ‐ Testing Laboratory ‐ Non‐Storefront Retail
‐ Retail: 2 Total
‐ Manufacturing: 1 Total ‐ Distribution: 1 Total
‐ Testing Laboratory: 1 Total ‐ Non‐Storefront Retail: 1 Total ‐ Retail: 2 Licenses
‐ Manufacturing: 1 License ‐ Distribution: 1 License ‐ Testing Laboratory: 0 ‐ Non‐Storefront Retail: 0
‐ Competitive ‐ Scored/Ranked ‐ Points Awarded by Proposal Review Committee Fairfax, CA ‐ Town Council Adoption (2019) ‐ Retail ‐ Retail: 2 Total ‐ Retail: 1 License ‐ Competitive ‐ Scored/Ranked ‐ Points Awarded by Planning Commission Goleta, CA ‐ City Council Adoption (2019)
‐ Cultivation ‐ Distribution ‐ Manufacturing ‐ Nurseries ‐ Retail ‐ Testing ‐ Cultivation: No Cap
‐ Distribution: No Cap
‐ Manufacturing: No Cap
‐ Nurseries: No Cap
‐ Retail: 15 Total
‐ Testing: No Cap
‐ Cultivation: 2 Licenses ‐ Distribution: 3 Licenses ‐ Manufacturing: 1 License ‐ Nurseries: 0 ‐ Retail: 3 Licenses ‐ Testing: 0
‐ Competitive ‐ Scored/Ranked ‐ Points Awarded by City Director Novato, CA ‐ City Council Adoption (2019)
‐ Non‐Storefront Retail
‐ Testing ‐ Manufacturing ‐ Indoor Cultivation
‐ Microbusiness
‐ Distribution
‐ Non‐Storefront Retail: Unlimited
‐ Testing: 2 ‐ Manufacturing: 2 ‐ Indoor Cultivation: 2 ‐ Microbusiness: 3 ‐ Distribution: 1 (No limit if ancillary to another activity)
‐ Non‐Storefront Retail: 0, (1 in
review) ‐ Testing: 0 ‐ Manufacturing: 0
‐ Indoor Cultivation: 0, (1 in review)
‐ Microbusiness: 0, (1 in review)
‐ Distribution: 0
‐ Competitive ‐ Scored/Ranked ‐ Points Awarded by Proposal Review Committee Mountain View, CA ‐ City Council Adoption (2019) ‐ Non‐Storefront Retail ‐ Retail
‐ Non‐Storefront Retail: 3, or
‐ Retail: 3, or combination thereof.
‐ Non‐Storefront Retail: 0
‐ Retail: 0
‐ Applications Screened ‐ Qualified Applications Placed in Lottery ‐ Zoning Administrator Randomly Selects Applications Encinitas, CA ‐ Voter Driven Initiative (2020)
‐ Retail ‐ Cultivation ‐ "Product Manufacturing"
‐ "Cannabis Kitchens"
‐ Distribution
‐ Retail: 4
‐ Cultivation: No Cap
‐ Manufacturing: No Cap
‐ Distribution: No Cap
‐ Retail: 0
‐ Cultivation: 0
‐ "Product Manufacturing": 0
‐ "Cannabis Kitchens": 0 ‐ Distribution: 0
‐ Competitive Lottery
‐ Applicants Graded and Placed into Tiers
‐ Applicants in 1st Tier Randomly Selected
‐ 1st Tier Exhausted, Applicants in 2nd Tier Randomly
Selected
Santa Barbara, CA ‐ City Council Adoption (2018)
‐ Indoor Cultivation
‐ Manufacturing ‐ Distribution ‐ Retail Storefront
‐ Testing
‐ Indoor Cultivation: No Cap
‐ Manufacturing: No Cap
‐ Distribution: No Cap
‐ Retail Storefront: 3
‐ Testing: No Cap
‐ Indoor Cultivation: Not Avail.
‐ Manufacturing: 2 ‐ Distribution: 3
‐ Retail Storefront: 3
‐ Testing: 0
‐ Competitive ‐ Scored/Ranked ‐ Points Awarded by Permit Application Evaluator COMPARISON OF CANNABIS REGULATORY PROGRAMS ‐ LICENSING
(1) Note: Current license data is based primarily upon information from the Department of Cannabis Control (DCC). DCC data reflects issuance of a State license, which may or may not coincide with final issuance of a local license. As a result, actual number of businesses currently in operation within each jurisdiction may differ from figures indicated above. In addition, DCC data does not currently include manufacturing license totals by City.

As a result, manufacturing license totals shown above are based upon amounts reported on City cannabis websites and/or recent news articles published within those jurisdictions.

ATTACHMENT A‐1

Page 912 ends

City Retail Zoning Non‐Retail Zoning Sensitive Use Buffers Burlingame, CA ‐ "Rollins Road" / "Inner Bayshore": Mixed Use, Commercial, Light Industrial ‐ N/A ‐ Residential Use, Schools: 600
feet ‐ Day Care, Youth Centers: 600
feet
Pacifica, CA ‐ "Cannabis Operation Overlay District": Neighborhood Commercial, Service Commercial, Planned Development, Community Commercial ‐ Manufacturing: Service Commercial ‐ Testing: Community Commercial, Service Commercial ‐ Schools, Daycare Centers: 600 feet ‐ Youth Centers: 200 feet
Martinez, CA
‐ Light Industrial, Neighborhood Commercial, Controlled Industrial, Thoroughfare Commercial
‐ Manufacturing: Controlled Industrial, Light Industrial, ‐ Distribution: Controlled Industrial, Light Industrial, ‐ Testing Laboratory: Controlled Industrial, Light Industrial, Research and Development
‐ Schools, Daycare Centers: 600feet ‐ Youth Centers: 600 feet Fairfax, CA ‐ Highway Commercial, Central Commercial, and Limited Commercial ‐ N/A ‐ School, Youth Center: 600 feet
‐ Daycare, Tutoring Center: 300feet ‐ Delivery Only: School, Youth Center: 250 Feet
Goleta, CA ‐ Community Commercial, General Commercial, Old Town, and Regional Community
‐ Cultivation: Business Park, Industrial General, Service Industrial ‐ Distribution: Business Park, Industrial General, Service Industrial ‐ Manufacturing: Business Park, Industrial General, Service Industrial ‐ Nurseries: Business Park, Industrial General, Service Industrial ‐ Testing: Business Park, Industrial General, Service Industrial ‐ School: 600 feet
‐ Residential Land Use: 100 Feet
Novato, CA
‐ Light Industrial/Office, Commercial/Industrial, Business and Professional Office
‐ Cultivation: Light Industrial / Office, Commercial / Industrial ‐ Distribution: Light Industrial / Office, Commercial / Industrial ‐ Manufacturing: Light Industrial / Office, Commercial / Industrial ‐ Nurseries: Light Industrial / Office, Commercial / Industrial ‐ Testing: General Commercial, Downtown Core Retail, Light Industrial / Office, Commercial / Industrial, Downtown Core Business, Business and Professional Office
‐ School, Youth Center: 600 feet
Mountain View, CA
‐ Commercial Service, General Industrial, Limited Industrial, Corridor Areas, Core Character Area, General Character Area, Edge Character Area ‐ N/A ‐ School: 600 feet ‐ Childcare Center: 250 feet Encinitas, CA
‐ Commercial, General Commercial, Commercial Mixed Use, Mixed Use Land Use
‐ Cultivation: Agriculture
‐ "Product Manufacturing": Light Industrial, Agricultural ‐ "Cannabis Kitchen": Business Park, Light Industrial, Agriculture, General Commercial ‐ Distribution: Business Park, Light Industrial ‐ Daycare, Playground, Other
Retailer, School: 1,000 feet
‐ Youth Center: 600 feet
‐ Exceptions allowed for
"geographic barriers" between
cannabis business and sensitiveuse
Santa Barbara, CA ‐ Light Manufacturing ‐ Light Manufacturing ‐ Schools, Daycare, Youth Center: 600 feet ATTACHMENT A‐2
COMPARISON OF CANNABIS REGULATORY PROGRAMS ‐ ZONING

Page 913 ends

City Retail Non‐Retail
Burlingame, CA ‐ 5% of gross receipts. ‐ N/APacifica, CA ‐ 6% of Gross Receipts ‐ Manufacturing: 6% of Gross Receipts Martinez, CA ‐ Negotiated through Community Benefit Agreement (CBA) ‐ Most Recent CBA: 6% of Gross Receipts
‐ Negotiated Through CBA
‐ Most Recent CBA: None available on record
Fairfax, CA ‐ Information not readily available ‐ Information not readily available Goleta, CA ‐ 5% of Gross Receipts
‐ Cultivation: 4% of Gross Receipts
‐ Distribution: 1% of Gross Receipts
‐ Manufacturing: 2% of Gross Receipts
‐ Nurseries: 1% of Gross Receipts
‐ Testing: 0% of Gross Receipts
Novato, CA
‐ Negotiated through Community Benefit Agreement (CBA)
‐ Most Recent CBA: 3.5% of Gross Receipts
‐ Negotiated Through CBA
‐ Most Recent CBA: 1.5% of Gross Receipts (Testing), 3‐4% of Gross Receipts (Microbusiness)
Mountain View, CA ‐ 9% of Gross Receipts ‐ N/A
Encinitas, CA
‐ Pending Voter Approval
‐ 4% to 6% of Gross Receipts
‐ Pending Voter Approval ‐ Retail: 6% of Gross Receipts (Max) ‐ Cultivation: $10/sq. ft. of canopy indoor, $7/sq. ft. of canopy greenhouse, $4 per square foot of canopy outdoor, $2/sq. ft. of canopy nursery (Max) ‐ Distribution: 3% of Gross Receipts (Max)
‐ Manufacturing: 4% of Gross Receipts (Max)
‐ Testing: 2% of Gross Receipts (Max)
Santa Barbara, CA ‐ 5% of gross receipts.
‐ Distribution: 4% of gross receipts
‐ Testing: 4% of gross receipts
‐ Cultivation 2% of gross receipts
‐ Manufacturing: 3% of gross receipts

ATTACHMENT
A‐3
COMPARISON OF CANNABIS REGULATORY PROGRAMS ‐ TAX RATES

Page 914 ends

SARATOGA

CAMPBELL

SAN JOSE MONTE SERENO
COUNTY
COUNTY
COUNTY
COUNTY

LOS GATOS
Legend
600-foot Radius
LG Parcels within 600-foot Radius
Schools and Commercial Daycares
School and Commercial Daycare Locations
ATTACHMENT 2

Page 915 ends

Commercial Cannabis Public Comments
From: Matt Fleming <[email protected]>
Sent: Friday, August 20, 2021 9:23 AM
To: Cannabis <[email protected]>
Subject: Question on cannabis ordinance
I saw that your town is considering allowing cannabis (and is surveying residents).

First: I am not looking for a consulting contract or cannabis permit or anything of the sort. I will not ask you for a permit or for money.

I'm a consultant for Hawthorne Gardening, a subsidiary of Scotts Miracle-Gro.

Hawthorne is not in the cannabis business, but some of its customers are, and we work with municipalities on workable policies that serve the community and ensure local and independent cannabis operators can be successful.

We have technical experts who can answer questions regarding lighting requirements, odor mitigation and other aspects of running either a retail, cultivation or other type of safe and compliant cannabis business.

Can you tell me a bit more about where your town is in the process? And can I help answer any technical questions about issues like odor mitigation and lighting requirements, etc? --
Matt Fleming
GrassrootsLab
From: Matt Fleming <[email protected]>
Sent: Monday, November 1, 2021 4:12 PM
To: Cannabis <[email protected]>
Subject: Re: Question on cannabis ordinance

EXTERNAL SENDER
Attachment 3 Page 916
Just circling back on this. Any assistance you could provide would be greatly appreciated.

On Fri, Aug 20, 2021 at 9:22 AM Matt Fleming <[email protected]> wrote:

I saw that your town is considering allowing cannabis (and is surveying residents).

First: I am not looking for a consulting contract or cannabis permit or anything of the sort. I will not ask you for a permit or for money.

I'm a consultant for Hawthorne Gardening, a subsidiary of Scotts Miracle-Gro.

Can you tell me a bit more about where your town is in the process? And can I help answer any technical questions about issues like odor mitigation and lighting requirements, etc? --
Matt Fleming
GrassrootsLab
(916) 282-9921
From: Joseph Plaster <[email protected]>
Sent: Thursday, November 4, 2021 10:56 AM
To: Cannabis <[email protected]>
Subject: Cannabis in Los Gatos

EXTERNAL SENDER
Hello,

Page 917 ends

I noticed that the commercial cannabis survey is now closed. When will the results be presented at Council? Also, is there any way to sign up for cannabis related notifications? Thanks, I look forward to your response.

Best,
Joseph Plaster
Licensing Associate
Nectar Markets, LLC
P: (858)245-9404
E: [email protected]
Pronouns: He/Him/His
Negligent Misstatements: Nectar accepts no liability for the content of this email, or for the consequences of any actions taken on the basis of the information provided, unless that information is subsequently confirmed in writing. If you are not the intended recipient you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.

Employee Views: Any views or opinions presented in this email are solely those of the author and do not necessarily represent those of the company.

Employees of Nectar are expressly required not to make defamatory statements and not to infringe or authorize any infringement of copyright or any other legal right by email communications. Any such communication is contrary to company policy and outside the scope of the employment of the individual concerned. Nectar will not accept any liability in respect of such communication, and the employee responsible will be personally liable for any damages or other liability arising.

Actual Authority: No employee or agent is authorized to conclude any binding agreement on behalf of “Nectar” with another party by email without express written confirmation by a Nectar C-Level Executive.

From: Ellen Wysocki <[email protected]>
Sent: Friday, January 14, 2022 9:45 AM
To: Cannabis <[email protected]>
Subject: Commercial Cannabis Dispensaries in Los Gatos

EXTERNAL SENDER
Hello,

Page 918 ends

I was curious to see if there has been any discussion in regards to allowing commercial cannabis storefront retailers within the city of Los Gatos? Or if there are any upcoming meetings? Thank you so much for your assistance.

Warm Regards,
Ellen Wysocki
Director of Licensing and Northern Expansion, Shryne Group, Inc. (707)225-7211 | [email protected]
www.shrynegroup.com
Sacramento, CA
This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the Shryne Group. This message contains confidential information and is intended only for the individual named. If you are not the named addressee you should not disseminate, distribute or copy this e-mail.

Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system. If you are not the intended recipient you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.

From: Jayme Rivard <[email protected]>
Sent: Wednesday, January 26, 2022 8:22 PM
To: Cannabis <[email protected]>
Cc: cary stiebel <[email protected]>
Subject: Is the city considering allowing cannabis?

EXTERNAL SENDER
Hello,
I had heard that Los Gatos city council may be considering allowing cannabis businesses. Is that true? Is there a mailing list I can get on for updates? Kind regards,

Page 919 ends

Jayme Rivard
(831)277-9931
From: Robin Flury <[email protected]>
Sent: Saturday, January 29, 2022 3:18 PM
To: Cannabis <[email protected]>
Subject: medical growth?

EXTERNAL SENDER
Hi!
I wanted to know what, if anything, is allowed in Los Gatos regarding growing cannabis for personal medical use. Can a small number of plants be grown indoors? Or outdoors? Is there any paperwork or applications needed in order to do so for medical purposes? Thank you!
From: Lisa Tollner <[email protected]>
Sent: Thursday, February 10, 2022 8:53 AM
To: Cannabis <[email protected]>
Subject: Cannabis Consultant

EXTERNAL SENDER
Town of Los Gatos Council Members:

I may be an ideal candidate for the upcoming cannabis consulting position. My background includes being involved in the cannabis industry in the primary sectors (retail, manufacturing, distribution, cultivation, processing). I am a 22-year resident of Monte Sereno, and I have inside knowledge of the pros and cons of cannabis and how it impacts a community. Please let me know if a formal RFP application becomes available for this position, or if you would like to arrange a call or meeting, let me know.

Thanks,
Lisa
Lisa Tollner
Co-Founder/CMO

Page 920 ends

Sensi Signature Products
408-483-7131
www.sensiproducts.com
@sensi_chew
From: Julie Newell <[email protected]>
Sent: Tuesday, February 22, 2022 11:53 AM
To: Cannabis <[email protected]>
Subject: inquiry

EXTERNAL SENDER
Good Afternoon,
I would like to know the status of cannabis in the city and if there is any additional movement for allowing retail businesses. If there is, do you have an idea of when this will be done and if the selection process will be lottery or merit
thank so much for you response
Julie
--
Julie D. Newell
Bloomstoneco.com
714-914-1162
From: Joanne Rodgers <[email protected]>
Sent: Saturday, February 26, 2022 3:23 PM
To: Judy Peckler <[email protected]>
Cc: Ron Rennie <[email protected]>; Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Marico Sayoc

Page 921 ends

<[email protected]>; Laurel Prevetti <[email protected]> Subject: Marijuana dispensaries in LG

EXTERNAL SENDER
Dear Judy and all,
Thank you for the information below about the attack on Cannabis Dispensaries in Oakland. I had not seen this.

When we consider the amount of additional crime and more administrative work and policing that will be necessary,
it seems to me that having drugs sales in our family oriented town will not bring in much tax money.

We are also sending the wrong message that drug and being high are acceptable in Los Gatos.

We have to be sure we let our council member know how we feel about this.

Three council members(Rob Rennie, Mary Badame, Marico Sayoc) are up for re-election this November 2022.

Mary Badame is the only one who voted NO to paying $50,000 to the Cannabis Management Services Co.
to study where to locate marijuana dispensaries in our town.

Thank you.

Joanne
This is the note from Judy Peckler:

Last night I was watching local news and they interviewed the operator of the Cannabis Dispensary in Oakland. It had been hit by Crash and Grab team that had tried before and succeeded finally. There was an suv that drove into the entrance and two other support cars with numerous hooded thieves who ransacked the store. There was a second location had been targeted as well.

This was a violent and destructive criminal attack.

The police and authorities were gathering evidence.

It was alarming to hear and I became more fearful of the potential violence that could impact a neighborhood.

Please keep me updated and I want the community
To be educated about this dangerous reality.

Thank you

Page 922 ends

Judy Peckler
From: Marty Berk <[email protected]>
Sent: Monday, February 28, 2022 2:48 PM
To: Rob Rennie <[email protected]>; Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Marico Sayoc <[email protected]>; Laurel Prevetti <[email protected]> Cc: Joanne Rodgers <[email protected]>; Rowena Turner <[email protected]> Subject: Against having a marijuana dispensary in Los Gatos

EXTERNAL SENDER
Dear Los Gatos Town Council Members and Town Manager,
Please listen to the many Los Gatos residents who do not wish to have marijuana dispensaries in town.

I am a Monte Sereno resident but am closely connected to the town of Los Gatos in many ways. My children attended and benefited from Los Gatos schools from kindergarten through high school. My town contributes about a million dollars each year to share the Los Gatos Police Department services. I primarily shop in town and prefer Los Gatos restaurants. My late husband practiced surgery at Good Samaritan Hospital for over thirty years.

Marijuana dispensaries are entirely unnecessary here and can lead to serious problems for Los Gatos families. Any problems arising from local dispensaries should be on your conscience. Paying $50,000 for a study to determine sites for dispensaries is such a waste of community money.

Please, please consider the consequences of your decisions.

Most sincerely,
Martha K. Berk
From: Katherine Winkelman <[email protected]>
Sent: Thursday, March 3, 2022 9:53 PM

Page 923 ends

To: Joanne Rodgers; Rob Rennie; Maria Ristow; Mary Badame; Matthew Hudes; Marico Sayoc Cc: Laurel Prevetti
Subject: Re: Comments on MJ Dispensaries to the Town Council- March 1

EXTERNAL SENDER
As a long-time Los Gatos town volunteer and ongoing Los Gatos Chamber member, Los Gatos resident near 50 years, St Mary’s and St Lucy’s Youth Minister and volunteer 20 years, past CASA Los Gatos President, Club Live, Friday Nite Live Volunteer (student clubs on high school and Jr. high school campuses) and Los Gatos High Volunteer 15 years I cannot be convinced with all this experience walking with kids that the Town of Los Gatos should have a dispensary or two or three. And oh my what we could do for our kids and families with $50000. I totally agree with Joanne Rogers and all opposed.

Sincerely Kathy Winkelman
Get Outlook for iOS
From: Joanne Rodgers <[email protected]>
Sent: Wednesday, March 2, 2022 4:10:09 PM
To: [email protected] <[email protected]>; [email protected] <[email protected]>; Mary Badame <[email protected]>; [email protected] <[email protected]>; Marico Sayoc <[email protected]> Cc: Laurel Prevetti <[email protected]>
Subject: Comments on MJ Dispensaries to the Town Council- March 1 Dear LG Friends and Town Council Members,
Last night March 1st several of us spoke at the Open Comments to the Council Members concerning the $50,000 that was spent to study
whether we would allow 3 marijuana dispensaries in Los Gatos. These are my comments and the letter below is one written by
Franklin Bondonno, Santa Clara County Judge about kids in Juvenile Hall.

I will let you know when we can arrange another meeting with a Council member and Police Chief.

Please continue writing letters and emails to our Town Council Members.

Joanne Rodgers
Hi
I’m Joanne Rodgers, co-founder of CASA, Community against Substance Abuse and

Page 924 ends

founder of LGHS New Millennium Foundation.

I was going to expound on MJ, as a GATEWAY DRUG and the harm it does to our kids.

Like 400 difference toxins that pot leaves in the brain, the reproductive organs, and fatty tissue for weeks after using. Think of this in terms of our kids.

But instead I read through the contract that our Town Attorney signed and FOUR of our Council Members voted to fund for $50,000 with
HDL, Cannabis Management Services Companies.

YOU HAVE OPENED A CAN OF WORMS.

Los Gatos will have no control on the outcome of allowing 3 MJ dispensaries in our town as has been proposed in HDL Scope of Services unless there are 3 votes against it by the Town Council.

There is no way this

PROPOSAL FOR CANNABIS OUTREACH AND POLICY DEVELOPMENT CONTRACT will only cost Los Gatos tax payer the initial $50,000 fee you have just paid them.

That is only the beginning.

Let me tell you what I found out when I called one of HDL references:
-HDL has been sued by several cities
-I was told the rating process that HDL used in this city sent them different names but they were the same people. -the summary of the scores were wrong.
-there was NO oversight - They complied all the surveys. They wrote the Ordinance changes; They wrote the ballot measure; they decided the tax rate; they run the public meetings and provided direction to town staff. -Our contract says everything will be virtual even the individual meeting with Town Council members and all public meetings because travel expenses for in person have not been included in the $50,000. -The person I talked to (one the their references) said the Cannabis business is a litigious business. -30 dispensaries were closed down.
-There is lot of oversight needed by police and security and HDL will do this too. -She said they paid HDL much more than $50,000.
-She said their key Personnel,Compliance Director, David McPherson is a sales guy period.

Page 925 ends

Others personnel include 5 Auditors, 5 Compliance Inspectors and a few more.

We have given this whole process over to a Cannabis Management Service Co.

It is the Fox guarding the Hen House.

And our town survey says 60+% of Los Gatos does not want this.

Why would we go into this type of business?
There are other ways to raise money for the town. Don’t spend another penny on this.

It’s wrong for our town.

I have a letter from Santa Clara Superior Court Judge that I will email to you all.

Please read it.

Thank you.

From: Franklin Bondonno <[email protected]>
Subject: RE: Marijuana Dispensary planned for LG-Update Date: February 16, 2022 at 4:55:58 PM PST
To: Joanne Rodgers <[email protected]>
MJ can be legally purchased at the Airport store on Coleman in San Jose. That is about 10 miles from the edge of Town.

MJ can be of help for the Cancer patients and is legal for adults in this state.

However, MJ is a big issue for kids : it interferes with brain development up to about age 24 or 25.

It can also increase anxiety and in some cases bring on ( but not cause ) early sysmptoms of mental illness. ie By Polar onset.( Strong European studies on this ).

Almost all of the kids I see in Juv. Justice use MJ ; and none of them can buy it legally.

I can see no benefit to having MJ sales in LG except perhaps some sales tax revenue. However, most of the information I have seen shows that the underground illegal market is doing better then the legally regulated and taxed market. So the down side seems

Page 926 ends

greater than the up side for our town.

A key question is do legal MJ stores get robbed? How often ? Because of the banking laws, do they have a lot of cash on hand making them a target? How much extra Police time cost comes with this type of store in town ?
The line that LG needs to be a "full service town" is a little glib.

I would like to know how much income the Town expects to get from the MJ store. It should be way more that the 50K price of the study. And how did the Town come to the expected number ? I hope that helps.

Franklin
From: Stephanie Simas <[email protected]>
Sent: Tuesday, March 8, 2022 5:52 PM
To: Cannabis <[email protected]>
Subject: Cannabis

EXTERNAL SENDER
I’d love to work with the town to properly educate the residents on what legalization really means, and the local faces behind it. I’m a graduate of LGHS ‘97 and live near Lexington with my husband and son.

As a special needs parent/mom who medicates her autistic son/child with CBD oil for behavioral issues and also is a 5 year cannabis industry veteran, I also have knowledge from running a cannabis shop in Soquel for the last 2 years.

Sincerely,
Stephanie A Simas
408-830-7101
XO- Steff
From: Alexandra Swafford <[email protected]>
Sent: Friday, March 11, 2022 9:37 AM

Page 927 ends

To: Cannabis <[email protected]>
Subject: Two more voters and residents, and our opinion

EXTERNAL SENDER
Dear Town of Los Gatos,
We have been sent surveys on what we like/do not like/ would like improved on/ use of Community...but Marijuana Dispensaries are not addressed on this survey. It was with great alarm that I read that Los Gatos was considering Dispensaries. Have we learned nothing over the years? We have a terrific High School, terrific students and a community that tries its best to support the development of responsible young (and old) adults. Correct that marijuana is now legal - at 21 years. It is true, that most any enterprising and even half determined young person can 'order' ANY number of drugs online...including ones that end up causing addiction and also killing (because of fentanyl mixed into any number of 'recreational drugs)...but the goal of the Town should be to 'set an example' of responsible use of whatever (and yes, that includes alcohol) for the youth. There are dispensaries outside of the boundaries of Los Gatos, and they deliver, so we need to have one here? For what purpose? Revenue? Like we do not have enough revenue in this Town to support a responsible quality of live and community without bringing in a Marijuana Dispensary?
I understand that we are 'older' voters, but I also would hope that we would have experience and wisdom to have seen what drugs, misuse, overuse and addition does to people...and it starts with the attitude of the community. I have friends who have sold homes and moved to other Bay Area communities, specifically because Marijuana dispensaries opened close to them.

Please listen to the residents of this community, and resist the consideration of opening Dispensaries here. It does NOT make Los Gatos a more 'cool' community; in fact quite the opposite. Marijuana is readily available now to those who need it recreationally or medically, but we do not need the Dispensaries here.

Our opinion,
alexandra & david swafford
From: caissie stephens <[email protected]>
Sent: Friday, March 11, 2022 9:26 AM
To: Cannabis <[email protected]>
Subject: Yes to one Cannabis dispensary

EXTERNAL SENDER

Page 928 ends

I have lived in Los Gatos for over 52 years and I don't understand why there is such a hesitancy to have one Cannabis dispensary in town, unless it is fear. We have liquor stores, I do not drink, that are throughout the town and can buy alcohol at all major grocery stores. I am much more concerned about that, than I am about a cannabis dispensary. It brings revenue to the town and a lot of people use it for medical reasons. I am a yes on this
C Stephens
From: Alexandra Sung <[email protected]>
Sent: Monday, March 14, 2022 9:13:21 PM
To: Maria Ristow <[email protected]>
Subject: Concern re: possibility of cannabis operations in Los Gatos

EXTERNAL SENDER
Dear Vice Mayor Ristow,
I am a Los Gatos resident and want to express my concern regarding the possibly of allowing cannabis stores / operations in Los Gatos. I strongly oppose this idea due to public safety and odor concerns. The potential for additional revenue is simply not worth the risk of the negative externalities to this community. Those seeking cannabis have plenty of options nearby. Please let them go there and keep the negative impacts out of Los Gatos.

Regards,
Alexandra Sung
From: Jeff Sung <[email protected]>
Sent: Monday, March 14, 2022 10:30 PM
To: Cannabis <[email protected]>; Rob Rennie <[email protected]>; Marico Sayoc <[email protected]>; Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]> Subject: No to cannabis

EXTERNAL SENDER
Dear Los Gatos Town Council,
Years ago, it was cool to smoke. Joe Camel, the Marlboro Man... Members of our council should remember these figures. We've learned that people of that generation were brainwashed into smoking, with targeted ads by Big Tobacco. Only with lawsuits against tobacco, have we learned the true extent of how tobacco targeted children, targeted low income minorities for commercial profit. Governments went along for the ride, using "sin taxes" to pay for government programs, as these taxes were palatable

Page 929 ends

to the general populace. Politicians didn't have to speak up for these poor individuals, suckered into smoking by focused campaigns, and caught in their addiction. These individuals could be portrayed as deserving the consequences of their "consenting adult" choices, while the general populace got to reap the benefits of their taxes.

I fear that the same is happening now with marijuana. Yes, it is not right to put people in prison for using a small amount of marijuana. But it is not right to encourage its use by adding dispensaries, and it is absolutely not right for government to try to use marijuana as a way to raise tax revenue. This tax revenue is blood money.

As a doctor, I see the people who pay this blood money. I am biopsying their lung cancers. I am putting feeding tubes in their stomachs because of the cancers growing in their throats. I am reading the scans of the cancers that have spread to their brain and bones. Make no mistake that smoking marijuana causes the same cancers as smoking tobacco. Marijuana causes brain damage. Marijuana accelerates cardiovascular disease. Marjauna causes mental illness.

Marijuana gets into the hands of children. Nationwide, about 1 in 14 children aged 12 to 17 used marijuana in the past month. That figure was 24 percent in California, and increased to 26 percent after Proposition 64 was passed. Putting a dispensary in Los Gatos is going to make marijuana more accessible to children. We can't kid ourselves about this. We can't abrogate responsibility and say that this is the sole responsibility of parents.

Nearly 60 percent of Los Gatos residents said they opposed having a dispensary in Los Gatos. Please listen to them. Listen to physicians. Stop listening to those with financial interests tied to marijuana.

Thank you for your time.

Sincerely,
Jeffrey Sung, M.D.

From: Alexandra Sung <[email protected]>
Sent: Monday, March 14, 2022 9:11 PM
To: Cannabis <[email protected]>
Subject: Opposition to any form of cannabis business in Los Gatos

Page 930 ends

EXTERNAL SENDER
Hello,
I am a Los Gatos resident and want to express my concern regarding the possibly of allowing cannabis stores / operations in Los Gatos. I strongly oppose this idea due to public safety and odor concerns. The potential for additional revenue is simply not worth the risk of the negative externalities to this community. Those seeking cannabis have plenty of options nearby. Please let them go there and keep the negative impacts out of Los Gatos.

Regards,
Alexandra Sung
On Mar 14, 2022, at 9:14 PM, Alexandra Sung <[email protected]> wrote:

EXTERNAL SENDER
Dear Council Member Sayoc,
Thank you for your service to our community. I am a Los Gatos resident and want to express my concern regarding the possibly of allowing cannabis stores / operations in Los Gatos. I strongly oppose this idea due to public safety and odor concerns. The potential for additional revenue is simply not worth the risk of the negative externalities to this community. Those seeking cannabis have plenty of options nearby. Please let them go there and keep the negative impacts out of Los Gatos.

Regards,
Alexandra Sung
From: [email protected] <[email protected]> Sent: Tuesday, March 15, 2022 8:38 AM
To: Cannabis <[email protected]>
Cc: 'Lainey Richardson' <[email protected]>
Subject: 60 year resident

EXTERNAL SENDER
I went to Dave’s Ave, Fisher, LG High and West Valley JC.

I am PRO dispensary in LG.

Page 931 ends

Happy to discuss:

Lainey Richardson
14801 Golf Links Dr
Los Gatos, CA 95032
408-497-6731
From: Joanne Rodgers <[email protected]>
Sent: Wednesday, March 02, 2022 4:10 PM
To: Rob Rennie <[email protected]>; Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Marico Sayoc <[email protected]>
Cc: Laurel Prevetti <[email protected]>
Subject: Comments on MJ Dispensaries to the Town Council- March 1

EXTERNAL SENDER
Dear LG Friends and Town Council Members,
Last night March 1st several of us spoke at the Open Comments to the Council Members concerning the $50,000 that was spent to study
whether we would allow 3 marijuana dispensaries in Los Gatos. These are my comments and the letter below is one written by
Franklin Bondonno, Santa Clara County Judge about kids in Juvenile Hall.

I will let you know when we can arrange another meeting with a Council member and Police Chief.

Please continue writing letters and emails to our Town Council Members.

Joanne Rodgers
Hi
I’m Joanne Rodgers, co-founder of CASA, Community against Substance Abuse and founder of LGHS New Millennium Foundation.

Page 932 ends

I was going to expound on MJ, as a GATEWAY DRUG and the harm it does to our kids.

Like 400 difference toxins that pot leaves in the brain, the reproductive organs, and fatty tissue for weeks after using. Think of this in terms of our kids.

But instead I read through the contract that our Town Attorney signed and FOUR of our Council Members voted to fund for $50,000 with
HDL, Cannabis Management Services Companies.

YOU HAVE OPENED A CAN OF WORMS.

Los Gatos will have no control on the outcome of allowing 3 MJ dispensaries in our town as has been proposed in HDL Scope of Services unless there are 3 votes against it by the Town Council.

There is no way this

PROPOSAL FOR CANNABIS OUTREACH AND POLICY DEVELOPMENT CONTRACT will only cost Los Gatos tax payer the initial $50,000 fee you have just paid them.

That is only the beginning.

Others personnel include 5 Auditors, 5 Compliance Inspectors and a few more.

We have given this whole process over to a Cannabis Management Service Co.

Page 933 ends

It is the Fox guarding the Hen House.

And our town survey says 60+% of Los Gatos does not want this.

Why would we go into this type of business?
There are other ways to raise money for the town. Don’t spend another penny on this.

It’s wrong for our town.

I have a letter from Santa Clara Superior Court Judge that I will email to you all.

Please read it.

Thank you.

MJ can be of help for the Cancer patients and is legal for adults in this state.

However, MJ is a big issue for kids : it interferes with brain development up to about age 24 or 25.

It can also increase anxiety and in some cases bring on ( but not cause ) early sysmptoms of mental illness. ie By Polar onset.( Strong European studies on this ).

Almost all of the kids I see in Juv. Justice use MJ ; and none of them can buy it legally.

Page 934 ends

greater than the up side for our town.

Franklin
From: Gladie Rabitz <[email protected]>
Sent: Sunday, February 27, 2022 7:24 PM
To: Laurel Prevetti <[email protected]>; Rob Rennie <[email protected]>; Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Marico Sayoc <[email protected]> Cc: Art Rabitz <[email protected]>
Subject: Cannabis stores/ dispensaries in LG

EXTERNAL SENDER
Dear LG Town Manager and Town Council Members -- We have lived in our Los Gatos home for 50 years, moving into our home in 1972. We have both been active in many parts of the Town's activities, in LGHS with our 4 kids in the 80's and 90's, on all the teams, volunteering in the schools, in many of the non-profits, etc. I was a co-founder of "The Venue, A Place for Teens" from 1988 forward, and on their Board of Directors for 12-15 years, developing the building, the programming, and the safety of the teens. I'm now active in Assistance League of Los Gatos-Saratoga, still helping in the schools, with Literacy, STEAM, Lunches for Seniors, Clothes For Kids, Care Packages for Foster Teens, and more programs to help those in need in and around our community. My husband is very active in the Los Gatos Rotary, and all their many activities including the long-held local Great Race.

Page 935 ends

We have been hearing about the marijuana/ cannabis stores/ dispensaries that are being planned for Los Gatos, the $50,000 "study", etc, and we are appalled. How can you even think of having that kind of store in our clean-cut, family-oriented, touristy, musical, charming, and artistic town?? It would be such a detriment to the town, to the kids, to the families, and to our wonderful Town's beautiful reputation. I hope you reconsider having this type of business in town. For similar reasons, a local gun shop and a paraphernalia shop were closed down in Los Gatos over recent years. A cannabis/ marajuana/ paraphernalia shop does not belong here in our lovely Los Gatos. Please reconsider and let them open elsewhere, not here.

Thank you for "listening".

Gladie Rabitz,
18315 Daves Ave., Los Gatos, CA 95030
From: freeman <[email protected]>
Sent: Wednesday, March 16, 2022 9:41 AM
To: Cannabis <[email protected]>
Cc: freeman <[email protected]>
Subject: cannabis discussions

EXTERNAL SENDER
Dear Town of Los Gatos,
I am a resident of Los Gatos for 60+ years and would like to participate in discussion of cannabis business licensing in Los Gatos.

Can you please tell me how to sign up for meetings and consultant presentations? What is the schedule of meetings concerning cannabis in Los Gatos?
Thank you,
Keith Freeman
759 Blossom Hill Road
Los Gatos, CA 95032

Page 936 ends

From: Lee Fagot <[email protected]>
Sent: Wednesday, March 16, 2022 5:27 PM
To: Robert Schultz <[email protected]>; Rob Rennie <[email protected]>; Maria Ristow <[email protected]>; Matthew Hudes <[email protected]>; Mary Badame <[email protected]>; Marico Sayoc <[email protected]>; Laurel Prevetti <[email protected]>; Arn Andrews <[email protected]> Subject: Cannabis sales in Los Gatos

EXTERNAL SENDER
Council Members and Senior Town employees
Interesting that the NY Times has a front page story about CA cannabis sellers today, “ California Cannabis Sellers Face a Bleak Reality”. March 16, 2022 NY Times page 1, informing us who the legal sellers are (convicted of illegal drug dealings in the past and given priority to open their retail outlets) reporting how they have done since opening their retail outlets, as they are facing violent burglaries, increased very local crime, losing money, complaining they not able to make the same profits they made selling illegal drugs on the street, etc. Very similar to the fears now over what NY wants to do based also on the recent experiences in CA, as related in these articles.

And, the earlier story, “New Yorkers With Marijuana Convictions Will Get First Retail Licenses” , NY Times page A25 of March 10, relating similar issues expected with new laws in NY State allowing convicted felons to get priority for retail licenses for dispensaries.

What the hell are our courts, and elected officials trying to do? This also could be undermining the quality of police services and provides Interesting rewards for bad and illegal behavior. What is the real cost vs. estimated new tax revenue potential? My guess, it will cost much more socially and financially going forward. Lets make the right decision on this issue of local retail outlet(s) in Town - NO!!
Thanks, and the articles are pretty scary, but worth the reading to learn more.

Lee Fagot
From: Cindy Tucey <[email protected]>
Sent: Monday, March 21, 2022 8:54:41 PM
To: Maria Ristow <[email protected]>
Subject: Vote NO on cannabis in Los Gatos

Page 937 ends

EXTERNAL SENDER
Dear Vice Mayor,
Please vote NO to retail cannabis in Los Gatos.

I was displeased to learn that the Los Gatos town council is considering allowing retail cannabis in our town of Los Gatos.

My in-laws live in a town in Colorado that was an early adopter of retail cannabis in the town. It has caused many problems for the town, and has brought a lot of undesirable elements to the town. It has trashed many previously nice areas. I have also seen shopping plazas with cannabis in the Bay area that have become undesirable due to the retail cannabis. I do not desire this for the town of Los Gatos.

We also do not want easier drug access for our children. I understand a counter argument is that teens will get cannabis anyway, so why prohibit cannabis in our town and give up the tax money. To this I would respond, that this is about more than easy access to cannabis, it’s also about what sort of town we want to have. We do not want to attract the type of folks that will be getting high in the parking lot to our town. We don’t want the crime and security issues.

Please vote NO.

Thank you for your consideration.

Sincerely,
Cindy Tucey
Homeowner & Resident of Los Gatos
From: Cindy Tucey <[email protected]>
Sent: Monday, March 21, 2022 1:53 PM
To: Cannabis <[email protected]>
Subject: Vote NO on retail cannabis

EXTERNAL SENDER
Dear Sir or Madam,
I was displeased to learn that the Los Gatos town council is considering allowing retail cannabis in our town of Los Gatos.

Please vote NO to retail cannabis in Los Gatos.

Page 938 ends

trashed many previously nice areas. I have also seen shopping plazas with cannabis in the Bay area that have become undesirable due to the retail cannabis. I do not desire this for the town of Los Gatos.

I understand a counter argument is that teens will get cannabis anyway, so why prohibit cannabis in our town and give up the tax money. To this I would respond, that this is about more than easy access to cannabis, it’s also about what sort of town we want to have. We do not want to attract the type of folks that will be getting high in the parking lot to our town. If folks want to get cannabis, there are plenty of dispensaries in the local area.

Please vote NO.

Thanks for your consideration.

Sincerely,
Cindy Tucey
Sent from my iPhone
On Mar 22, 2022, at 1:17 PM, Kathy Anderson <[email protected]> wrote:

EXTERNAL SENDER
I am resending this requesting that each council member respond. I thank Mary Badame for responding.

I would like to know each of your reasoning for spending money on a study where 60% of your citizens were against allowing.

You are elected to represent the citizens of Los Gatos. Why would you ignore that responsibility by pursuing a costly study on an issue 60% of your citizens were against.

Why would you consider having to make a zoning change to allow marijuana dispensaries when the majority of the citizens are against.

Did you do a poll and costly study on the gun issue or did you just take a stand against a controversial issue?
I know each of you are busy but you are elected officials and need to respond to your electorate.

Kathy Anderson
Foster Rd. Los Gatos
I have asked in past correspondence to Council to vote no on marijuana dispensaries.

My question is - why are you even considering allowing them in Los Gatos ? The poll concerning marijuana dispensaries 60% of returns voted no. Council would need to make a zoning change to allow them.

Council voted to not allow gun shops in town. It shows Council can take a stand when controversial issues come up.

So why aren’t you just saying no to the marijuana dispensaries?

Page 939 ends

Please respond
Thank you,
Kathy Anderson
Foster Rd. Los Gatos
Sent from my iPad
On Mar 24, 2022, at 9:04 PM, Jeff Sung <[email protected]> wrote:

EXTERNAL SENDER
Hi Marico,
I know you have kids too, and was wondering if you had any thoughts regarding my email. Nobody from town council replied. I was hoping you would all consider the points I made in it though. Please let me know your thoughts. Thank you for your time.

Respectfully,
Jeff
From: Jeff Sung <[email protected]>
Date: Mon, Mar 14, 2022, 10:30 PM
Subject: No to cannabis
To: <[email protected]>, Rob Rennie <[email protected]>, Marico Sayoc <[email protected]>, <[email protected]>, <[email protected]>, <[email protected]>
Dear Los Gatos Town Council,
Years ago, it was cool to smoke. Joe Camel, the Marlboro Man... Members of our council should remember these figures. We've learned that people of that generation were brainwashed into smoking, with targeted ads by Big Tobacco. Only with lawsuits against tobacco, have we learned the true extent of how tobacco targeted children, targeted low income minorities for commercial profit. Governments went along for the ride, using "sin taxes" to pay for government programs, as these taxes were palatable to the general populace. Politicians didn't have to speak up for these poor individuals, suckered into smoking by focused campaigns, and caught in their addiction. These individuals could be portrayed as

Page 940 ends

deserving the consequences of their "consenting adult" choices, while the general populace got to reap the benefits of their taxes.

Thank you for your time.

Sincerely,
Jeffrey Sung, M.D.

From: [email protected] <[email protected]>
Sent: Tuesday, March 29, 2022 6:45 PM
To: 'Joanne Rodgers' <[email protected]>; 'Joe Rodgers' <[email protected]>; Rob Rennie <[email protected]>; Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Marico Sayoc <[email protected]>; Robert Schultz <[email protected]>; Laurel Prevetti

Page 941 ends

<[email protected]>
Cc: 'Karla Albright' <[email protected]>; 'Sue Anawalt' <[email protected]>; 'Don Arnaudo' <[email protected]>; 'Rose Arnaudo' <[email protected]>; Mary Badame <[email protected]>; 'Dru Barth' <[email protected]>; 'Jim Barth' <[email protected]>; 'Kathy Bays' <[email protected]>; 'Michael Bays' <[email protected]>; 'Celia Bell' <[email protected]>; 'Joanne Benjamin' <[email protected]>; 'Marty Berk' <[email protected]>; 'Toni Blackstock' <[email protected]>; 'Jeffrey P. Blum' <[email protected]>; 'Nancy Boesenberg' <[email protected]>; 'Diana Bond' <[email protected]>; 'Franklin Bondonno' <[email protected]>; 'Shannon Burnett' <[email protected]>; 'Susan Burnett' <[email protected]>; 'Kelly Campbell' <[email protected]>; 'Julio Casal' <[email protected]>; 'Faustine Comstock' <[email protected]>; 'Robert Cowan' <[email protected]>; 'Joan Cross' <[email protected]>; 'Don Erba' <[email protected]>; 'Lee Fagot' <[email protected]>; 'Leslie Finch' <[email protected]>; 'Karyn Gramling' <[email protected]>; 'R &L Hallinan' <[email protected]>; 'Mary Harvey' <[email protected]>; 'Stacey Hein' <[email protected]>; 'Nancy Hernandez' <[email protected]>; 'Margaret Hokeness' <[email protected]>; 'Garry Holst' <[email protected]>; 'Patti Hughes' <[email protected]>; 'Rupar Iyar' <[email protected]>; 'Jubie Jaramillo' <[email protected]>; 'Troy Jaramillo' <[email protected]>; 'Nancy Jobe' <[email protected]>; 'Sally Jones' <[email protected]>; 'Judy Peterson' <[email protected]>; 'Susan Kankel' <[email protected]>; 'Bonnie Knopf' <[email protected]>; 'Carrie Knopf' <[email protected]>; 'Phil Knopf' <[email protected]>; 'William Lasher' <[email protected]>; 'Theresa Leiker' <[email protected]>; 'Steve Leonardis' <[email protected]>; 'Celine Leroy' <[email protected]>; 'Barbara Mesa' <[email protected]>; 'Mike' <[email protected]>; 'Olga Montserratt' <[email protected]>; 'Pearl Norton' <[email protected]>; 'Sally Paolini' <[email protected]>; 'Judy Peckler' <[email protected]>; 'Gwen Pinkston' <[email protected]>; 'Diana Pleasant' <[email protected]>; 'Gladie Rabitz' <[email protected]>; 'Joe Rodgers' <[email protected]>; 'Travis Rodgers' <[email protected]>; 'Marshall Smith' <marshall@mbmsmith.com>; 'Doug Sporleder' <[email protected]>; 'Vicki Thorburn' <[email protected]>; 'Kirsten Trapani' <[email protected]>; 'Terri Trotter' <[email protected]>; 'Kathy Tumason' <[email protected]>; 'Susan Tuttle' <[email protected]>; 'Carol Wallace' <[email protected]>; 'Kim Wasserman' <[email protected]>; 'Lucy Wedemeyer' <[email protected]>; 'Dave Wilde' <[email protected]>; 'Kathy Winkelman' <[email protected]>
Subject: RE: alarming information regarding HDL requiring immediate action

EXTERNAL SENDER
Dear Robert Schultz,
and Rob Rennie, Maria Ristow, Mary Badame, Matthew Hudes, Marico Sayoc, Laurel Prevetti

Page 942 ends

My name is Lisa Harris and I have been a homeowner in Los Gatos for over 20 years. I am part of a growing collective group of concerned residents in Los Gatos called CAD, Community Against Dispensaries.

Recently we were made aware that the town of Los Gatos hired a Cannabis management company called HDL for initial consultation services.

I looked on the HDL website to learn more about the cannabis management company that The Town of Los Gatos gave $50,000 to. I want to quote what HDL said on their website regarding the companies “Regulation, Development, and Support services.”
“HDL, will help you develop cannabis regulations that maximize agency economic benefits while providing a framework for cannabis businesses to operate successfully. Services include fiscal analysis, land-use regulation development, regulatory and tax ordinance drafting, and ballot resolution preparation.” This is a biased for profit agency with regards to the cannabis industry. HDL plays a core part in orchestrating the approval of commercial cannabis businesses in towns.

Upon further research I discovered that essentially they are a full service company that has contracts with towns over the course of many years . HDL makes the bulk of their profits off of towns if they allow cannabis businesses to operate. They also will work with cannabis companies in a towns jurisdiction on an ongoing basis to make sure the town is receiving their taxes. HDL is essentially a biased pro- cannabis company. If we don’t allow cannabis in the town of Los Gatos, than HDL can’t provide billable services. It’s in HDL’s best interest to convince the town of LG to allow cannabis businesses to operate.

David Mc Pherson, Cannabis Compliance Director for HDL said in an interview with mjbizdaily.com, “ It makes no sense for this firm not to want cannabis businesses to succeed in the jurisdictions where it has contracts”
According to consulting.us, the town of San Bernadino originally had a 5 year $750,000 contract with HDL. HDL was going to audit and oversee regulations of the cannabis businesses in the town. San Bernadino shortened the contract to 1 year at $150,000 . Here’s the interesting part. It was reported in the consulting.us article that “The remaining 4 year contract($600,000) will be paid using fees collected from various Cannabis Businesses during the commercial licensing process.” So HDL also bills cannabis businesses for providing their services, in addition to billing towns. This contradicts what Andy Nickerson President of HDL wrote in the cover letter to Robert Schultz Town Attorney on January 24, 2022. Nickerson wrote , “HDL works solely with public agencies and has no private-sector clients in the cannabis industry”
In other words, HDL manages to still get paid by the local cannabis businesses even though a town might change their mind and not want a 5 year contract. No matter how you look at this, HDL’s sole fiscal survival is dependent upon towns allowing cannabis businesses.

Page 943 ends

In addition, HDL has no concern regarding for safety for the communities. In an interview by The Californian the question to David Mc Pherson was asked, “Is public concern common in communities?” Mc Pherson answered, “They keep bringing it back to schools and kids but look at the state law, and public safety, and law enforcement. It has so little concern of manufacturing ( growing operations) being an issue.” HDL looks for legal loopholes or rewrites the town ordinances to get the cannabis businesses in the towns anyway they can.

In the 1/24/22 proposal by HDL it said that the “Town Attorney held a series of 10 meetings with various community groups to gather input from the public. The majority of the public in attendance expressed an interest in allowing cannabis businesses within the town.” CAD is requesting information as to who attended those 10 meetings? This meeting ,to our knowledge, was never publicized within the community for the town to ”gather Input.” Furthermore, a survey was done recently by Surveymonkey asking if the town residents wanted dispensaries. Over %60 voted NO.
***CAD is asking Robert Shultz, Laurel Prevetti, or any member from the town council to please answer the following questions;
1) Why did the town council hire HDL knowing that it is a biased for-profit marijuana consultation company?
2) The town already did a survey on Surveymonkey and discovered that over 60% polled were against dispensaries in the town of Los Gatos. Your constituents have spoken. Why did the town hire HDL anyways?
3) In the future, How will you be communicating your intentions regarding allowing dispensaries in town?
4)Robert Schultz, Who were those 10 groups that you met with that expressed an interest in allowing cannabis businesses within the town?
5) What is the long term financial commitment that the town expects to spend with HDL if dispensaries are allowed?
***CAD is making a formal request asking the town to terminate it’s contract with HDL and find an unbiased consultation firm that doesn’t have any financial stake in the outcome of the survey.

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CAD is just getting started, this group has evolved and grown so quickly in spite of not advertising in our local communication resources or social media. We haven’t even gotten the word out to all of the parents in our local schools yet. I can guarantee you that there will be many concerned parents asking why does the town council and it’s leaders think having dispensaries in our town will enhance our quality of life.

Kind regards,
Lisa Harris
From: susan burnett <[email protected]>
Sent: Wednesday, March 30, 2022 3:26 PM
To: Rob Rennie <[email protected]>; Maria Ristow <[email protected]>; Laurel Prevetti <[email protected]>; [email protected]; [email protected]; [email protected]
Subject: Cannabis dispensaries

EXTERNAL SENDER
Good afternoon,
After more research on the possible Cannabis Dispensaries in Los Gatos I have grave concerns! We are definitely not going to get an unbiased report if HDL is hired to take on this important issue for our town. I also have serioous reservations on the real possibility of increased crime, smash and grab! We already have an Apple Store that is frequently being hit and they grab cell phones! Please do not hire HDl, I am convinced this community does not want this for our town. The NYT had a front page article about California and the increasing crime around the dispensaries. How does our police feel about this and what is the cost for their increased services that will be needed? Thank-you,
Susan Burnett
Sent from my iPhone
From: Keith Freeman <[email protected]>
Sent: Monday, April 4, 2022 10:57 AM
To: Holly Zappala <[email protected]>
Subject: Marihuana dispensary in Los Gatos

EXTERNAL SENDER
Dear Town of Los Gatos,

Page 945 ends

I have been given this email address to enquire about the proposal to allow marihuana stores in Los Gatos.

Having lived in Los Gatos for 60+ years (University Avenue '61,Fisher '62, Wildcat '66). My children all went to LGHS. I have strong feelings about marihuana being sold in Los Gatos.

Can you please advise me on how I can participate in this discussion.

Thank you,
Keith Freeman
759 Blossom Hill Road
Los Gatos
From: K. Deloumi <[email protected]>
Sent: Monday, April 11, 2022 8:25 AM
To: Rob Rennie <[email protected]>
Cc: Town Manager <[email protected]>
Subject: Fw: Hoboken must exercise more caution on recreational marijuana dispensaries | Opinion

EXTERNAL SENDER
Please share. Reflection into the future.

Karen

Page 946 ends

----- Forwarded Message -----
From: "K. Deloumi" <[email protected]>
To: "Me Me Karen Deloumi" <[email protected]>
Cc:

Sent: Mon, Apr 11, 2022 at 8:13 AM
Subject: Hoboken must exercise more caution on recreational marijuana dispensaries | Opinion https://www.nj.com/opinion/2022/04/hoboken-must-exercise-more-caution-on-recreational-marijuanadispensaries-opinion.html Karen
From: Max Del Real <[email protected]>
Sent: Thursday, April 14, 2022 11:50 AM
To: Town Manager <[email protected]>
Cc: Arn Andrews <[email protected]>; Cannabis <[email protected]> Subject: Cannabis Inquiry

EXTERNAL SENDER
Ms. Prevetti,
Good morning.

I am interested in your Town’s new Cannabis Program in Los Gatos.

I represent NUG Inc., a leading cannabis retail company in Northern California. We currently own and operate five (5) award-winning retail cannabis stores in Northern California - including licensed dispensaries in Sacramento, Redding, Oakland, El Cerrito, and San Leandro. Our company website is www.nug.com.

My client, NUG, is very interested in applying for a retail cannabis permit in the Town of Los Gatos. Our business has been recognized for its industry success and “best practices.” Further, our business - if allowed to open in Los Gatos - would create thirty (30) new, local jobs and be an “economic driver” pertaining to new tax dollars for your Town. Further, our company has an active Community Outreach Plan, that provides $100,000 annually to local nonprofits and charities.

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I would like to schedule a ZOOM call and/or meeting with you to discuss the new Cannabis Program in the Town of Los Gatos and introduce my client, NUG Inc.

Please let mew know when you are available. Best.

M. Max Del Real
President & CEO
Ammericann Development LLC
833.335.7325 Toll Free
530.892.2998 Office
916.717.2664 Direct
[email protected]
www.ammericann.com
The information contained in this E-mail is confidential and may also contain privileged advocate-client information or work product. The information is intended only for the use of the individual or entity to whom it is addressed. If you are not the intended recipient, or the employee or agent responsible to deliver it to the intended recipient, you are hereby notified that any use, dissemination, distribution or copying of this communication is strictly prohibited. If you have received this E-mail in error, please delete this message from your computer and immediately notify the sender.

Thank you.

GO GREEN, GO PAPER-FREE.

From: RICHARD GASKILL <[email protected]>
Sent: Friday, April 22, 2022 7:35 PM
To: Cannabis <[email protected]>
Subject: Cannabis in Los Gatos

EXTERNAL SENDER
I think many cannabis users like to smoke it, which is definitely unhealthy for them and others. Also, I don't think there is evidence that it's better than regular meds for any condition. And it can be addictive. I also worry that it could become associated with criminal organizations. So I don't think it should be allowed in Los Gatos.

J. Richard Gaskill, MD
From: RICHARD GASKILL <[email protected]>
Sent: Saturday, April 23, 2022 4:24 PM

Page 948 ends

To: Cannabis <[email protected]>
Subject: Fwd: Cannabis in Los Gatos

EXTERNAL SENDER
For more information Google "Kaisers advice on marijuana" JRG
---------- Original Message ----------
From: RICHARD GASKILL <[email protected]>
To: "[email protected]" <[email protected]> Date: 04/22/2022 7:34 PM
Subject: Cannabis in Los Gatos
I think many cannabis users like to smoke it, which is definitely unhealthy for them and others. Also, I don't think there is evidence that it's better than regular meds for any condition. And it can be addictive. I also worry that it could become associated with criminal organizations. So I don't think it should be allowed in Los Gatos.

J. Richard Gaskill, MD
From: Patty Charles <[email protected]>
Sent: Monday, May 2, 2022 2:58 PM
To: Cannabis <[email protected]>
Subject: Los Gatos dispensary - I'm against

EXTERNAL SENDER
I am writing as a Los Gatos citizen with 3 teenagers.

I am not against dispensaries or the legalization of Marijuana, but I do not see the benefit of having one in Los Gatos. The dispensaries I have been too are not terrible places, but they have typically had a lot of security (armed guard) and I have never been to one where there was not a person or two of question around. Why is this the type of business we want in Los Gatos?

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Even just having a pharmacy attracts people looking for drugs. I have teenagers and I really do not want them having any easier access to drugs than they already do. I also don't want an armed guard outside of a dispensary. It is just an accident waiting to happen.

My understanding is that as Dispensaries are not federally regulated they cannot have FDIC bank account. So having cash around also attracts people looking for easy answers.

Surely we can find more viable less risky businesses for los gatos.

So I am against.

Patty
From: W Stephen Sullins <[email protected]>
Sent: Thursday, May 5, 2022 9:47 AM
To: Cannabis <[email protected]>
Subject: NO Cannabis in Los Gatos

EXTERNAL SENDER
I’ve seen the plan to hire a cannabis consultant to explore the possibility of licensing cannabis dispensaries in Los Gatos. As a resident with school children, and as an adult that appreciates the mature and already vibrant retail and dining scene, I see NO benefit to the community by even considering the benefits of licensing dispensaries.

PLEASE, lets stop this process in its tracks. We have enough abuse of alcohol amongst our children, we don’t need to open the door, even through legal channels, to the view that more substance abuse is acceptable.

Thank you.

Steve Sullins
17055 Los Robles Way
Los Gatos
Sent from my iPad
From: caissie stephens <[email protected]>
Sent: Friday, May 6, 2022 8:19 PM
To: Cannabis <[email protected]>
Subject: Los Gatos Resident for over 50 years

Page 950 ends

EXTERNAL SENDER
I am in support of having a cannabis dispensary in Los Gatos. Many in our community use Cannabis legally, and to provide a local dispensary would be beneficial for the community.. Cannabis is used by so many and has so many good purposes if used correctly and legally. I have heard the push back due to the concern of sending the wrong message to adolescents. To address this concern I say, firstly, the dispensaries have very strict policies and you can not enter if you do not have I.D. Secondly, it has its own security. (Kids can run into Safeway and grab liqueur and run out. That will never happen at a dispensary). . Thirdly, I am a high school teacher and know teens will find pot and alcohol with or without a dispensary. At least this Cannabis is safe and regulated rather than what's on the street.

Caissie Stephens
From: [email protected] <[email protected]>
Sent: Thursday, May 12, 2022 6:01 PM
To: 'Joanne Rodgers' <[email protected]>; 'Joe Rodgers' <[email protected]>; Rob Rennie <[email protected]>; Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Marico Sayoc <[email protected]>; Robert Schultz <[email protected]>; Laurel Prevetti <[email protected]>; Cannabis <[email protected]> Cc: 'Karla Albright' <[email protected]>; 'Sue Anawalt' <[email protected]>; 'Don Arnaudo' <[email protected]>; 'Rose Arnaudo' <[email protected]>; Mary Badame <[email protected]>; 'Dru Barth' <[email protected]>; 'Jim Barth' <[email protected]>; 'Kathy Bays' <[email protected]>; 'Michael Bays' <[email protected]>; 'Celia Bell' <[email protected]>; 'Joanne Benjamin' <[email protected]>; 'Marty Berk' <[email protected]>; 'Toni Blackstock' <[email protected]>; 'Jeffrey P. Blum' <[email protected]>; 'Nancy Boesenberg' <[email protected]>; 'Diana Bond' <[email protected]>; 'Franklin Bondonno' <[email protected]>; 'Shannon Burnett' <[email protected]>; 'Susan Burnett' <[email protected]>; 'Kelly Campbell' <[email protected]>; 'Julio Casal' <[email protected]>; 'Faustine Comstock' <[email protected]>; 'Robert Cowan' <[email protected]>; 'Joan Cross' <[email protected]>; 'Don Erba' <[email protected]>; 'Lee Fagot' <[email protected]>; 'Leslie Finch' <[email protected]>; 'Karyn Gramling' <[email protected]>; 'R &L Hallinan' <[email protected]>; 'Mary Harvey' <[email protected]>; 'Stacey Hein' <[email protected]>; 'Nancy Hernandez' <[email protected]>; 'Margaret Hokeness' <[email protected]>; 'Garry Holst' <[email protected]>; 'Patti Hughes' <[email protected]>; 'Rupar Iyar' <[email protected]>; 'Jubie Jaramillo' <[email protected]>; 'Troy Jaramillo' <[email protected]>; 'Nancy Jobe' <[email protected]>; 'Sally Jones' <[email protected]>; 'Judy Peterson' <[email protected]>; 'Susan Kankel' <[email protected]>; 'Bonnie Knopf' <[email protected]>; 'Carrie Knopf' <[email protected]>; 'Phil Knopf'

Page 951 ends

<[email protected]>; 'William Lasher' <[email protected]>; 'Theresa Leiker' <[email protected]>; 'Steve Leonardis' <[email protected]>; 'Celine Leroy' <[email protected]>; 'Barbara Mesa' <[email protected]>; 'Mike' <[email protected]>; 'Olga Montserratt' <[email protected]>; 'Pearl Norton' <[email protected]>; 'Sally Paolini' <[email protected]>; 'Judy Peckler' <[email protected]>; 'Gwen Pinkston' <[email protected]>; 'Diana Pleasant' <[email protected]>; 'Gladie Rabitz' <[email protected]>; 'Joe Rodgers' <[email protected]>; 'Travis Rodgers' <[email protected]>; 'Marshall Smith' <marshall@mbmsmith.com>; 'Doug Sporleder' <[email protected]>; 'Vicki Thorburn' <[email protected]>; 'Kirsten Trapani' <[email protected]>; 'Terri Trotter' <[email protected]>; 'Kathy Tumason' <[email protected]>; 'Susan Tuttle' <[email protected]>; 'Carol Wallace' <[email protected]>; 'Kim Wasserman' <[email protected]>; 'Lucy Wedemeyer' <[email protected]>; 'Dave Wilde' <[email protected]>; 'Kathy Winkelman' <[email protected]>
Subject: RE: requesting GIS study for dispensaries

EXTERNAL SENDER
Dear council members and staff,
Last week on May 5, I attended a meeting with Marico Sayoc and Laurel Prevetti. The topic was marijuana dispensaries in Los Gatos. I am part of a group that is vehemently against marijuana dispensaries in town. I asked Laurel and Marico if the town has done a GIS study to even determine where one can go. Laurel said no, there was no plan thus far to conduct a study. This is mind boggling that not one person on your decision making team has requested to do this. Los Gatos is 11 square miles. I pointed out to Laurel and Marico that by the time you follow the current regulations of setback requirements away from schools, parks, hospitals, housing, etc. and staying in an industrial area, I think your group would be hard pressed to even find a suitable legal location in Los Gatos. Your team was so eager to hire HDL , a biased pro- cannabis consulting firm, at $50,000 looking for ways to make money for the town that they neglected to do this basic step. It seems to me that a GIS study should have been the first step.
***I am requesting that the town council and it‘s staff do a formal GIS study as to where you would legally place a dispensary based on current rules and regulations and when can we expect to see the published results for the public?
I am still against a dispensary. Please vote NO on allowing dispensaries in Los Gatos.

Kind regards,
Lisa Harris

Page 952 ends

Los Gatos City CouncilJune 21, 2022

Los Gatos City Council
June 21, 2022