Agenda packet — Los Gatos City Council, May 16, 2023 (part 2 of 2)

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

ALLEGHENY CASUAL TY COMPANY
Bond#
One Newark Center, 20th Floor, Newark, New Jersey 07102-5207 PHONE: (973) 624-7200 0748729
KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the Jaws of the State of New Jersey, and ALLEGHENY CASUAL TY COMPANY a corporation organized and existing under the laws of the State of New Jersey, having their principal office in the City of Newark, New Jersey, do hereby constitute and appoint IVAN M. MAROEVICH, JR., RACHEL A. PORTER, WILLIAM R. GRINDELL, VALERIE D. WILLIAMS-COLE PAUL F. PERLITE.

San Francisco, CA
their true and lawful attomey(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices.

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 20th day of July, 2010 and by t he Board of
Directors of ALLEGHENY CASUAL TY COMPANY at a meeting duly held on the 10th day of July, 2015 "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Vice President, or Secretary of the Corporation shall have t he
power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF. INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY have each executed and attested these presents on this 31st day of December, 2016

STATE OF NEW JERSEY
County of Essex
George R. James
Executive Vice President (International Fidelity Insurance Company) and Vice President (Allegheny Casualty Company)
On this 31st day of December, 2016 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and of ALLEGHENY CASUAL TY COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies.

IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

CERTIFICATION
Cathy Cruz a Notary Public of New Jersey
My Commission Expires April 16, 2019
I, the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, A00436/MOC Insurance Services.

Page 237 ends

ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the docum ent to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that docum ent.

State of California
County of_ San Francisco
On September 07 , 2018 before me, _ _,D""'a"'r--"a
'-c
T'--'o"-'u"-'c�h'", _,_N"o,.,t"'a
':'rye
._P'--"cub""
l"°ic'----------
(insert name and title of the officer)
personally appeared _,_R-"a"-'c'-'-h'-'e'-'-I ..,_P_,o'-'-rt-"'e'-'-r---,----,------------,------------,---,----------- who proved to me on the basis of satisfactory evidence to be the personw whose namew isi'afe subscribed to the within instrument and acknowledged to me that Retshel#ley executed the same in flistherl#leif authorized capacityfies}, and that by--Ais,'hefAAB.if signaturew on the instrument the person{s), or the entity upon behalf of which the personw acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature __ ____::(j:::._,..__j../..:!..:.J�=�-=---- (Seal) ·. DARA TOUCH
� ;) .. ·.
. Notary Pu.blic. California
i '! .
,;) San Francisco County �
z r::omm1ss1on # 2159426 � � "c•. •·1: :r,,,.,.,., ri<p1res Jul 9, 2020 � O©OY�,..,,�4 t 4@&$

Page 238 ends

FAITHFUL PERFORMANCE BOND

EXECUTION COPY
BOND NUMBER: 0748730
PREMIUM: $18,411
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SUMMERHILL N40 LLC (herein designated as "Principal") have entered an agreement by which Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of the Subdivision Improvement Agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and INTERNATIONAL FIDELITY INDEMNITY COMPANY, as Surety, are held and firmly bound unto the Town, in the penal sum of one million, nine hundred and thirty-eight thousand ($1,938,000) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, formally by these presents.

The condition of this obligation is such that if the above bounded Principal, its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Subdivision Improvement Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless Town, its officers, agents and employees, as therein stipulated, and this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

Principal and Surety further agree that, upon Town's final approval of the work, ten percent (10%) of this bond shall remain in effect to guarantee the repair and/or replacement of defective materials and/or construction, one (1) year after Town's final acceptance of the work, unless Principal posts a separate warranty bond instead.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by Town in successfully enforcing such obligation, all to be taxed as costs and included in any judgement rendered.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreemenfor to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Subdivision Improvement Agreement or to the work or to the specifications.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\54443\1441213.9 1

Page 239 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Hornes LLC,
a California limited liability company
Its Manager
By:

By:

Its: C:elO
SMHH\54443\1441213.9 2
SURETY:
/lddi INTERNATIONAt FIDELITY INDEMNITY

COMPANY
By:

Its:

Rachel A Portger
Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
[City, State, ZIP]

Page 240 ends

EXECUTION COPY
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of tb� Las•� /P -IOn I) /11-�,;.,,_;;;. a Notary Public, personally appeare ,,..,· , who proved to me on the basis of satisfactory evidence to be the person(,stwho e name(,;) is/ai:., subscribed to the within instrument and acknowledged to me that b,,,lshe/tl.ey executed the same in Ftis/her/tt;i,.ir authorized capacity(i.;aj,. and that by hislher/their signature(s-) on the instrument the person('3), or the entity upon behalf of which the person(,8 acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ��
J •
c e e e @ e e e o e e e � M.RINETTI : Notary Public -California 2 � Contra Ccsia Cou.--:?.t �
z '
. -
Comm1ssron # 2220824
MY Comm. Expires Nov 5. 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California /l _ County of tJ ,.,-fr,._, UJ'6 _, On :Q-p& Jq. UI j , befor1; me, /i'1. r<,h e/1, , a
_
Notary Public, personally
appeared zi,t,,.,;r ne..rrkhe!✓ , who proved to me on the basis of satisfactory evidence to be the person(aj-whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/sAe/1I,ey executed the same in his/�ir authorized capacity(�). and that by his/b.e.c.fili.eir signature(s) on the instrument the person(sl, or the entity upon behalf of which the person(.:,) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature � · � ,
SMHH\54443\1441213.9

Page 241 ends

LABOR AND MATERIALS BOND

EXECUTION COPY
BOND NUMBER: 0748730
PREMIUM: Included
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SummerHill N40 LLC (hereinafter designated as "Principal") have entered an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the Subdivision Improvement Agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the Town to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; NOW, THEREFORE, said Principal and the undersigned as Corporate Surety are held firmly bound unto the Town and all contractors, subcontractors, laborers, material suppliers and other persons employed in the performance of the Subdivision Improvement Agreement and referred to in the aforesaid Civil Code in the sum of one million, nine hundred and thirty-eight thousand ($1,938,000) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Town in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.

Should the condition of this bond be fully performed, then this obligation shall become null and void otherwise it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Subdivision Improvement Agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\54443\1441213.9 1

Page 242 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
:Maoage, cJ!l
Marjorie L. Szto
By:

SMHH\54443\1441213.9
. . .
2 SURETY:

IN�DELITY INDEMNITY

COMPANY
By: Rachel A Portger
Its: Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
[City, State, ZIP]

Page 243 ends

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California �r
f
County of (b,,,-ti--,,___ �n.-
)
)
On � 10, 2.DI� , before me, fJ-1' K-, hz::/1. · , a
_
Notary
_
Public, personally
appearea ;?l,uer• C ::52,:h:, , who proved to me on the basrs of satisfactory evidence to be the person(97 hose name(sl is/are subscribed to the within instrument and acknowledged to me that RB/she/tl>e3/ executed the same in ftis/her/tb€ir authorized capacity(J@s}, and that by hi&lher/tooir signature(,.) on the instrument the person{sj, or the entity upon behalf of which the person(sJ. acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature � · �
eeeeeee?:

M. RINETTI �
Nola� Pcblic- California z
Contra Costa County �
Commission# 2220824 -
My Comm. Expires Nov 5. 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Califowia ,, -I, County of {.�,-,-f-r---1<- cos "'---, On �f 10, C-()f'j , before mi,, 111 -�>?Ll54 · a Notary Public, personally appeared r ('.'A.,.-,-s /?e I f;A-htl✓ , who proved to me on the basis of satisfactory evidence to be the person(-srwhose name(&) is/are subscribed to the within instrument and acknowledged to me that he/s4e.l1Aey executed the same in his/�ir authorized capacity(i....J-, and that by his/�eir signature(sj- on the instrument the personfs-), or the entity upon behalf of which the person{;,) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature '---?'J?. �
SMHH\54443\1441213.9
,•eeeeeeeeeeee-�
• M. RINETTI " .... :
....
. Notary Public- Caliiomia z
i] :·- Contra Costa County f
. Commission # 2220824 ....

My Comm. Expires Nov 5, 2021
September 7, 2018

Page 244 ends

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

ALLEGHENY CASUALTY COMPANY
Bond# 0748730 --------
One Newark Center, 20th Floor, Newark, New Jersey 07102-5207 PHONE: (973) 624-7200 KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and ALLEGHENY CASUAL TY COMPANY a corporation organized and existing under the laws of the State of New Jersey, having their principal office in the City of Newark, New Jersey, do hereby constitute and appoint IVAN M. MAROEVICH, JR., RACHEL A. PORTER, WILLIAM R. GRINDELL, VALERIE D. WILLIAMS-COLE PAUL F. PERLITE.

San Francisco, CA.
their true and lawful attorney(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or other.vise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices.

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 20th day of July, 2010 and by the Board of Directors of ALLEGHENY CASUAL TY COMPANY at a meeting duly held on the 10th day of July, 2015 "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seats when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation With the same force and effect as though manually affixed."
IN WITNESS WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY have each executed and attested these presents on this 31st day of December, 2016

STATE OF NEW JERSEY
County of Essex
George R. James
Executive Vice President (International Fidelity Insurance Company) and Vice President (Allegheny Casualty Company)
On this 31st day of December,. 2016 , before me came .the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and of ALLEGHENY CASUAL TY COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies.

IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, A00436/MOC Insurance Services.

Page 245 ends

ACKNOWLEDGMENT
A nota ry public or other office r completing this
certificate verifies only the identity of the individua l who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

State o f California
County of_ San Francisco
On September 07 , 2018
)
before me, _ ___,D=ara'--"'--T_,_o,,_u,,_c"'h-'-',----'N_,_o""t"'a ":-
ryL.!...P_,,u""
b"'-lic"'---------
(insert name a nd title of the officer)
persona lly appea red __,R-'a,,_c,,,hc.,e"'l-'P-'o"'r-"te"'r'-------------:-------,----------- who proved to me on the basis o f satisfactory evidence to be the personfsj whose namefsj istafe subscribed to the within instrument and acknowledged to me that he,lshelthey executed the same in 11iB+herl#ieif authorized capa cityfies), and tha t by-flis.Jhefi.ll'leif signa turefsj on the instrument the personfst, or the entity upon behalf of which the personfsj a cted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my ha nd and official seal.

Signature ___ L)_._ __ -(:--"----.,_J__---=-------- (Seal)

Page 246 ends

FAITHFUL PERFORMANCE BOND

EXECUTION COPY
BOND NUMBER: 0748731
PREMIUM: $30,989
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SUMMERHILL N40 LLC (herein designated as "Principal") have entered an agreement by which Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of the Subdivision Improvement Agreement to furnish a bond for the faithful performance of said agreement NOW, THEREFORE, we, the Principal and INTERNATIONAL FIDELITY INDEMNITY COMPANY, as Surety, are held and firmly bound unto the Town, in the penal sum of three million, two hundred and sixty-two thousand ($3,262,000) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, formally by these presents.

The condition of this obligation is such that if the above bounded Principal, its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Subdivision Improvement Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the lime and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless Town, its officers, agents and employees, as therein stipulated, and this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Subdivision Improvement Agreement or to the work or to the specifications.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\54443\1441213.9 1

Page 247 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
By:
fJOflC L. Szto
t Vice P1 esident
By:

SMHH\54443\1441213.9 2
SURETY:

By: Rachel A Portger
Its: Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
[City, State, ZIP]

Page 248 ends

State of Californi51
County of {.fJ /l-rl?:-
On � -fJ, ZtJ fP . before me, /J7 · �hul/2 ' , a
_
Notary Public, personally
appeared ,,-n,.,,..p ,r 17:, 5�7il , who proved to me on the bas rs of satisfactory evidence to be the person(31 whose name(-s) is/are subscribed to the within instrument and acknowledged to me that ke/she/ti:u,y executed the same in h+s/her/tlreir authorized capacit�). and that by ftis/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(�) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature � · � ·
� @ e e e e e e e e e e: a1 __ M RINETTI "-·�-. NotaryPubiic-Califomia : :f �}-(// Contra Cos� Count'j � z
:, __ �-
Commission� 2220824 �
My Comm. Expires f'lov 5, 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Californ_iij -L-- /1 _ .I
County of Cd"7' � L�
On . ;i) m. K, he fl-z' ' a Notary Public, personally
appear d _ _j��__.!.f,,,;!:l-\.il'=l�----,--� who proved to me on the basis of satisfactory evidence to be the person{s) whose na (s) is/are subscribed to the within instrument and acknowledged to me that hc/sl:lellhey executed the same in his/herAReir authorized capacity(.J.l&}, and that by his/oor:AAeir signaturets) on the instrument the persort{s), or the entity upon behalf of which the person(s+ acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(
Signature A- �..&'
SMHH\54443\1441213.9 1
M. RINETTI
Notary Public- California z
Contra Ccsta Coun� �
Commission# 2220824
My Comm. E.xpir�s No11 5. 2021

Page 249 ends

LABOR AND MATERIALS BOND

EXECUTION COPY
BOND NUMBER: 0748731
PREMIUM: Included
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SummerHill N40 LLC (hereinafter designated as "Principal") have entered an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the Subdivision Improvement Agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the Town to secure the'claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; NOW, THEREFORE, said Principal and the undersigned as Corporate Surety are held firmly bound unto the Town and all contractors, subcontractors, laborers, material suppliers and other persons employed in the performance of the Subdivision Improvement Agreement and referred lo in the aforesaid Civil Code in the sum of three million, two hundred and sixty-two thousand ($3,262,000) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the sarne in an amount not exceeding the amount _herein above set forth, and also in case suit is brought upon this bond, will pay, in addition lo the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Town in successfully enforcing such obligation, to be awarded and fixed by the court, and lo be taxed as costs and to be included in the judgment therein rendered.

Should the condition of this bond be fully performed, then this obligation shall become null and void otherwise it shall be and remain in full force and effect.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\5444311441213.9 1

Page 250 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
By: ('
Its:

By:

Its:

SMHH\54443\1441213.9 2
SURETY:

INT ATIONAL FIDELITY INDEMNITY

COMPANY
By: Rachel A Portger
Its: Attorney-In-Fact
2999 Oak Rd. #820
(Address]
Walnut Creek CA 94597
[City, State, ZIP]

Page 251 ends

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which !bis certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Californ!f
County of t� efrCL,,
On 3epi-:lrJ / 21;1) , before me, [YI· �nc#c · , a
_
Notary Public, personally
appeared �,.,./ -e 52.
,,'fe , who proved to me on the basis of satisfactory evidence to be the person(-s)whse name(-stis/ar-e--subscribed to the within instrument and acknowledged to me that i'te/she/tl:iey executed the same in Ai&/her/tAeif authorized capacity(ies), and that by his/her/theifsignature,_(s) on the instrument the person(s), or the entity upon behalf of which the person\S) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
eeeeeeeel M. RINETTI
Neta� Public- Calilornia z
Col"lir2 Ccsta County $
Commission ;; 2220824 -
My Comm. Expires Nov 5, 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of CaliforQia +, County of {J)r, r,z
On �//), �i'y , before. m,e, /?1 · !Ci:O e ¢_ · , a Notary Public, personally appeared '½/4id �,{ W;/' , who proved to me on the basis of satisfactory evidence to be the person('S) whose name(s)i7are-subscribed to the within instrument and acknowledged to me that hB/she/U,ey executed the same in +,is/her/their authorized capacit� and that by ms/her/t/-;eifsignature\S) on the instrument the person(BJ, or the entity upon behalf of which the person(sj- acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature � ' �)--'
SMHH\54443\1441213.9
eneeeeeeeeeef M. RINETTI � -- · · _ .. _ _ Nola� Public- California :
� _ · _:·- Contra Costa (;ounty ::
:z · .. Commission# 2220824
· My Comm. Expires Nov 5. 2021
September 7, 2018

Page 252 ends

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

ALLEGHENY CASUAL TY COMPANY
Bond#
One Newark Center, 20th Floor, Newark, New Jersey 07102-5207 PHONE: (973) 624-7200 0748731
KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the !aws of the State of New Jersey, and ALLEGHENY CASUAL TY COMPANY a corporation organized and existing under the laws of the State of New Jersey, having their principal office in the City of Newark, New Jersey, do hereby constitute and appoint IVAN M. MAROEVICH, JR., RACHEL A. PORTER, WILLIAM R. GRINDELL, VALERIE D. WILLIAMS-COLE PAUL F. PERLITE.

San Francisco, CA.
their true and lawful attomey{s)-in-fact to execute, seat and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY, as fully and amply, to all intents and purposes, as if the same had been du!y executed and acknowledged by their regularly elected officers at their principal offices.

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY and is granted under and by authority of the foHowing resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 2oth day of July, 2010 and by the Board of Directors of ALLEGHENY CASUALTY COMPANY at a meeting duly held on the 10th day of July, 2015 "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY have each executed and attested these presents on this 31st day of December, 2016

STATE OF NEW JERSEY
County of Essex
George R. James
Executive Vice President (International Fidelity Insurance Company) and Vlce President (Allegheny Casualty Company)
On this 31st day of December, 2016 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and of ALLEGHENY CASUAL TY COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies.

IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

CERTIFICATION
Cathy Cruz a Notary Public of New Jersey
My Commission Expires April 16, 2019
I, the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY do hereby certify that 1 have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, A00436/MOC Insurance Services.

Page 253 ends

ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

State of California
County of_ San Francisco )
On September 07 , 2018 before me, -�D=a�ra�T=o�uc�h�.---'N�o� ta��rv�P--=u,,,b"'li"-c _______ _
(insert name and title of the officer)
personally appeared ...R,c-'a""c,,,hcce,,,1-:--'
P---'o"-'rt
:-"
e"'r-,-----:---,----------:---,-------,---,---::--------,----,---,--------� who proved to me on the basis of satisfactory evidence to be the personfsj whose namefs} istare subscribed to the within instrument and acknowledged to me that he.lsheltAey executed the same in Rislherl#leif a uthorized capacityfjest,-and that by-his,'hefl#!eiF signaturefsj on the instrument the personfst, or the entity upon behalf of which the pe rsonfsj acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature __ {)_.,___�----'-----•J(_ ______ _ (Seal)

DARA TOUCH
_
Notary Public • California
� San Francisco County I
z Commission# 2159426 :':: )4 0 i;@ ;·,.JMJ 20;''''7 txpi:es Jgl ;, JD}D, l

Page 254 ends

FAITHFUL PERFORMANCE BOND

EXECUTION COPY
BOND NUMBER: 0748732
PREMIUM: $7,591
WHEREAS, the Town of Los Gatos, State of California (hereinafter called 'Town"), and SUMMERHILL N40 LLC (herein designated as "Principal") have entered an agreement by which Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of the Subdivision Improvement Agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and INTERNATIONAL FIDELITY INDEMNITY COMPANY, as Surety, are held and firmly bound unto the Town, in the penal sum of seven hundred and ninety-nine thousand ($799,000) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, formally by these presents.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work lo be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Subdivision Improvement Agreement or to the work or to the specifications.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\5444311441213.9 1

Page 255 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SurnmerHill Homes LLC,
a California limited liability company
:: M,aa9
ec
ct:t
Its:

Senior Vice President
-
SURETY:
l��IDELITY INDEMNITY

COMPANY
By: Rachel A Portqer
Its: Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
By: [City, State, ZIP]
/Jti vii;y,,
Its:

SMHH\54443\1441213.9 2

Page 256 ends

State of Californja
County of l-/ .-rfru
On $$1-,1� Zo1} , before me, /YI· K, h(' fl, ·
, a
_
Notary Public, personally
appeared /YI.Itri!;✓' e, SZ:.--n> , who proved to me on the basrs of satisfactory evidence to be the perso$) who ename(&) is/are.subscribed to the within instrument and acknowledged to me that Aeishe/tl:!€y executed the same in Ais/her/tl'leir authorized capacityfies7, and that by AA;/her/tA<.ir signatureµ;) on the instrument the person(97, or the entity upon behalf of which the person{.;-) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
eeeee-eee:l M. R!NETTI
Notary Public - California z
Contra Costa County $
Commission : 2220824 �
My Comm. Expires Nov 5. 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Californjij
County of O ,,-fr-c,
On � JO 1 � , before me, fl'i· fe..,'11.c.4 · a Notary Public, personally appea� ' �- l?,t,1.Jhbbr , who proved to me on the basis of satisfactory evidence to be the person Ea) whose name(-s) rs/a.e subscribed to the within instrument and acknowledged to me that hel,hetthey executed the same in his/1:lsF,l!J:ieir authorized capacity{iesj, and that by his/Aefl.ll¾lir signaturefs) on the instrument the person(s-l, or the entity upon behalf of which the person(s-) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
SMHH\54443\1441213.9
eeeeeeeee� M. RINETTl
Notary Public- Callfomia z
Contra Costa County �
Commiss:on # 2220824 �
� C!mm, Ex:es No:,;, 2,51 w

Page 257 ends

LABOR AND MATERIALS BOND

EXECUTION COPY
BOND NUMBER: 0748732
PREMIUM: Included
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SurnmerHill N40 LLC (hereinafter designated as "Principal") have entered an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the Subdivision Improvement Agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the Town to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; NOW, THEREFORE, said Principal and the undersigned as Corporate Surety are held firmly bound unto the Town and all contractors, subcontractors, laborers, material suppliers and other persons employed in the performance of the Subdivision Improvement Agreement and referred to in the aforesaid Civil Code in the sum of seven hundred and ninety-nine thousand ($799,000) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Town in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

Should the condition of this bond be fully performed, then this obligation shall become null and void otherwise it shall be and remain in full force and effect.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th; 2018.

SMHH\54443\1441213.9 1

Page 258 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager �;;:=. By.

By:
(1wi�_tJei:yiJvw
SMHH\54443\1441213.9 2
SURETY:

INT�DELITY INDEMNITY

COMPANY
By:

Its:

Rachel A Portger
Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
[City, State, ZIP]

Page 259 ends

State of Califord /!l ·• .1
County of � ��
On ¥ J(J i/_j) /p _, bef9re IJlE!, /JJ · j((,i,e, f/2 · , a Notary Public, personally appeared //4 ;']? .,., G ;;,;:, --rzJ , who proved to me on the basis of satisfactory evidence to be the person(stwhose namet5) isl.are subscribed to the within instrument and acknowledged to me that l:le/she/tt-ley executed the same in his/her/tli-eir authorized capacity�), and that by A-is/her/their signature�) on the instrument the person(:;,), or the entity upon behalf of which the person(,sJ acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
M. RINETTI
Notary Public- California
Contra Costa County
Commission# 2220624
My Comm, !hpirl'li Nov 5. 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Californi?-;J
County of c ·1rrf-rt1.

On � 1(), � , before me, /rl · K-1ne 1/-, , a Notary Public, personally appe� I � �a--- ' who proved to me on the basis of satisfactory evidence to be the personfs) whose n�) is/are-subscribed to the within instrument and acknowledged to me that hc/sfw/11,e)' executed the same in his/t-lerlll,eir authorized capacity(ies), and that by his/i<Arffbr-ic.. signature(� on the instrument the personfs1, or the entity upon behalf of which the person(,sj acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
SMHH\54443\1441213.9
M. RINETTI.

Notary Public- Ca\ifom1a
contra Costa County
Commission# 2220824
My Comm, E.xpire\. Nev 5. 2021
September 7, 2018

Page 260 ends

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

ALLEGHENY CASUAL TY COMPANY
Bond#
One Newark Center, 20th Floor, Newark, New Jersey 07102-5207 PHONE: (973) 624-7200 0748732
KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY I _
NSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and ALLEGHENY CASUAL TY COMPANY a corporation organized and existing under the !aws of the State of New Jersey, having their principal office in the City of Newark, New Jersey, do hereby constitute and appoint IVAN M. MAROEVICH, JR., RACHEL A. PORTER, WILLIAM R. GRINDELL, VALERIE D. WILLIAMS-COLE PAUL F. PERLITE.

San Francisco, CA.
their true and lawful attorney(s)-ln-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be a!fowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices.

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 2oth day of July, 2010 and by the Board of Directors of ALLEGHENY CASUALTY COMPANY at a meeting duly held on the 10th day of July, 2015 "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporatlon's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature.of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF. INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY have each executed and attested these presents on this 31st day of December, 2016

STATE OF NEW JERSEY
County of Essex
George R. James
Executive Vice President (International Fidelity Insurance Company) and Vice President (Allegheny Casualty Company)
On this 31st day of December, 2016 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and of ALLEGHENY CASUALTY COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies.

IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

CERTIFICATION
Cathy Cruz a Notary Public of New Jersey
My Commission Expires April 16, 2019
1, the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, A00436/MOC Insurance Services.

Page 261 ends

ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity o f the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

State of California
County of_ San Francisco
On September 07, 2018 before me, -�D;:-=
a�ra�T
-:-
o�u=c=h�,�N�o=t
;=
a
c-;
ry';--'-P�u
:':
b':'lice.._-=-c----
(insert name and title of the officer)
personally appeared ---,
R
-;'-
a�c
':'
h�e=l�P�o
'-:
rt:'-'
e=r
-::-:---:------:--:------,-------,------,-,-------,--:----,---------- who proved to me o n the basis o f satisfactory evidence to be the personfst whose namefst isl'afe subscribed to the within instrument a nd acknowledged to me that Ret'shel#ley executed the same in Jcii&lherl#leiF a uthorized capacityfies},-and that by-.ruslhefltReif signaturefst on the instrument the personfsh or the entity upo n behalf of which the personfst acted, executed the inst rument.

I certify under PENAL TY OF PERJURY unde r the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _ ____./1,,_
,,;., __ £,..,,_...__,.,/L..��---- (Seal)
'"'"'''""""-��- DARA TOUCH ...
:,,,
Notary Public - California
, l
San �rancis.co County I
· Comm1Ssion # 2159426 ':':

My Comm. E,, ires Jul 9, 2020

Page 262 ends

FAITHFUL PERFORMANCE BOND

EXECUTION COPY
BOND NUMBER: 0748733
PREMIUM: $3,705
WHEREAS, the Town of Los Gatos, State of California (hereinafter called 'Town"), and SUMMERHILL N40 LLC (herein designated as "Principal") have entered an agreement by which Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of the Subdivision Improvement Agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and INTERNATIONAL FIDELITY INDEMNITY COMPANY, as Surety, are held and firmly bound unto the Town, in the penal sum of three hundred and ninety thousand ($390,000) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, formally by these presents.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\54443\1441213.9 1

Page 263 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
By:

By:

SMHH\54443\1441213.9 2
SURETY:

IN�IDELITY INDEMNITY

COMPANY
By: Rachel A Portger
Its: Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
[City, State, ZIP]

Page 264 ends

State of California //} .nJ Countyof Off/rtt., C{)�
On :fkpf;/&, ZtJ IV , before ri,e, th · /c1 >ie-./l..., · a Notary Public, personally appeared r �,, -r:' S.;z 7V , who proved to me on the basis of satisfactory evidence to be the person(&) whose name(;i-) is/are subscribed to the within instrument and acknowledged to me that 1<1€/she/thsy executed the same in Ris/her/!A€ir authorized capacity� and that by hlslher/ti,e.ir signature(&) on the instrument the person(s), or the entity upon behalf of which the person(aj acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature '--Ji,,, · �
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Califor9}a A_ County of (,»,p-r;,... 1.-D�
On • /I} , before1
mi,, f11.-· IC, he_(-/4.' , a Notary Public, personally appeared e f A. l:Jcl✓ who proved to me on the basis of satisfactory evidence to be the person�) whose name(s is/..re subscribed to the within instrument and acknowledged to me that he.1sh@1lhey executed the same in his/her'lhsiF authorized capacity�, and that by his/heFIHrnir signaturef,s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
� . /, ___ .. �___, Signature �
SMHH\54443\1441213.9 1
M. RINETTI
Notary Public - California Contra Costa County f Commission# 2220824 My Comm. Expires No� !L 2021

Page 265 ends

LABOR AND MATERIALS BOND

EXECUTION COPY
BOND NUMBER: 0748733
PREMIUM: Included
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SurnmerHill N40 LLC (hereinafter designated as "Principal") have entered an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the Subdivision Improvement Agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the Town to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; NOW, THEREFORE, said Principal and the undersigned as Corporate Surety are held firmly bound unto the Town and all contractors, subcontractors, laborers, material suppliers and other persons employed in the performance of the Subdivision Improvement Agreement and referred to in the aforesaid Civil Code in the sum of three hundred and ninety thousand ($390,000) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Town in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

Should the condition of this bond be fully performed, then this obligation shall become null and void otherwise it shall be and remain in full force and effect.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\54443\1441213.9

Page 266 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
By:

By:
lts: __ �_0 _____ _
SMHH\54443\1441213.9 2
SURETY:
l��IDELITY INDEMNITY

COMPANY
By: Rachel A Portger
Its: Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
[City, State, ZIP]

Page 267 ends

A notary public or otber officer completing this certificate verifies only the identity of tbe individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Califo/la
County of �,.+,,-/4-
On < s'� //, OI) , before me, /11 · l'<':,hr::__J/..., · a Notary Public, personally appeared ' /72�; i C ::{?-"70 , who proved to me on the basis of satisfactory evidence to be the person(s, whoname(.,.) is/are subscribed to the within instrument and acknowledged to me that be/she/th.e.y executed the same in lais/her/tll€ir authorized capacityµesL and that by his/her/I� signature(s} on the instrument the person(,;}, or the entity upon behalf of which the person(� acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

A notary public or other officer completing this certificate verifies only tbe identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Californj? ,,p .1_ . County of {3 nir/4_ CO £,r--e;,____;, )
)
On . /I} /J1 · /f:,'7 �/4 · , a Notary Public, personally appeare ,r , who proved to me on the basis of satisfactory evidence to be the person(,;) whose name(s) i am subscribed to the within instrument and acknowledged to me that he/she{[email protected] executed the same in his/l:leJ:ltooir authorized capacity(ies.), and that by his/� signature(.;) on the instrument the person(,;), or the entity upon behalf of which the person(s.) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
SMHH\54443\1441213.9
• M.RINETTI neeeeeeeeeeel l - Notary Public- California z i Coritra Costa Courtly !
z Commission# 2220824
My Cmnm, t,:piiU N(IV 5. 2021
September 7, 2018

Page 268 ends

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

ALLEGHENY CASUAL TY COMPANY
Bond#
One Newark Center, 20th Floor, Newark, New Jersey 07102-5207 PHONE: (973) 624-7200 0748733
KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and ALLEGHENY CASUAL TY COMPANY a corporation organized and existing under the laws of the State of New Jersey, having their princlpal office in the City of Newark, New Jersey, do hereby constitute and appoint IVAN M. MAROEVICH, JR., RACHEL A. PORTER, WILLIAM R. GRINDELL, VALERIE D. WILLIAMS-COLE PAUL F. PERLITE.

San Francisco, CA.
their true and lawful attomey(sHn-fact to execute, seal and deliver for and on its behalf as surety, any and al! bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument{s) in pursuance of these presents, shall be as binding upon the said INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices.

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 20th day of July, 2010 and by the Board of Directors of ALLEGHENY CASUAL TY COMPANY at a meeting duly held on the 10th day of July, 2015 "RESOLVED, that {1) the Chief Executive Officer, President, Executive Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and {2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and {3) the signature of any such Officer of the Corporation and the Corporation's sea! may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY have each executed and attested these presents on this 31st day of December, 2016

STATE OF NEW JERSEY
County of Essex
c�SUA()) ...
"o
1936 !
George R. James
Executive Vice President {International Fidelity Insurance Company) and Vice President (Allegheny Casualty Company) WJEflS,,:(
On. this 31st day of- December, 2016 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he ls the therein described and authorized officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and of ALLEGHENY CASUAL TY COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies.

IN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

CERTIFICATION
Cathy Cruz a Notary Public of New Jersey
My Commission Expires April 16, 201 g
I, the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, A00436/MOC Insurance Services.

Maria H. Branco, Assistant Secretary
..

Page 269 ends

ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

State of California
County of_ San Francisco
On September 07 , 2018
)
before me, -��~��~� Dara Touch. Notary Public ==-------- (insert name and title of the officer)
personally appeared ---;
R
;"
a=c
c'
h�e=l
:-'-
P�o
'--;
rt�e=r
-:-:--;---;------,--,-----:--;----;;--------,--,------,---------,--,------ who proved to me on the basis of satisfactory evidence to be the personfst whose namefst isl'are subscribed to the within instrument and acknowledged to me that Relsheltlley executed the same in fli&'her/#Jeif authorized capacityfiest, and that by-Ris/heflttleif signaturefst on the instrument the person{sh or the entity upon behalf of which the personfst acted, exec uted the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
(Seal)

Page 270 ends

FAITHFUL PERFORMANCE BOND

EXECUTION COPY
BOND NUMBER: 0748734
PREMIUM: $893
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SUMMERHILL N40 LLC (herein designated as "Principal") have entered an agreement by which Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of the Subdivision Improvement Agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and INTERNATIONAL FIDELITY INDEMNITY COMPANY, as Surety, are held and firmly bound unto the Town, in the penal sum of ninety-four thousand ($94,000) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, formally by these presents.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\54443\1441213.9 1

Page 271 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
By:

By:

SMHH\5444311441213.9 2
SURETY:
,�,rr'"DCMN,>Y

COMPANY
By: Rachel A Portger
Its: Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
[City, State, ZIP]

Page 272 ends

EXECUTION COPY
A notary public or otber officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of CaliforlJ)a 4 __ _; County of t� $Ni.- (_, �
On St,,J-:-;r! � , before m\l, . /1? · /CJ il C /4 . a Notary Public, personally appeared J·J C:. > 2,, 'rT> , who proved to me on the basis of satisfactory evidence to be the person� whose name(s) is/.:.Fe subscribed to the within instrument and acknowledged to me that Ail/she/they executed the same in A-is/her/ti,eir authorized capacity(ies), and that by 11.i,;/her/their signature(s, on the instrument the person(,}, or the entity upon behalf of which the person(aj acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature �.,, �
�eeeeeeeeeeeel M. RINETTI • Nola� Poblic - California z � Conira Costa County '$
>!: Commission# 2220824 -
My Comm. Exoires Nov 5. 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of CalifoJJili':.L /v County of (,t!Jo tr&- LO�
On � /� , bel,>r\l me, /11 · K1 ;,,e � · a Notary Public, personally appea� IZt(,/fu:,lv , who proved to me on the basis of satisfactory evidence to be the person(-s) whose nam�(s) is/are subscribed to the within instrument and acknowledged to me that oo/she/tl:ley executed the same in r-tis/her/ti'teir authorized capacity(ies), and that by his/her/their signature( .. ) on the instrument the person{S), or the entity upon behalf of which the person(..) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
�,,� Signature -- --'�-=---=====---------
SMHH\54443\1441213.9 1

Page 273 ends

LABOR AND MATERIALS BOND

EXECUTION COPY
BOND NUMBER: 0748734
PREMIUM: Included
WHEREAS, the Town of Los Gatos, State of California (hereinafter called 'Town"), and SurnrnerHill N40 LLC (hereinafter designated as "Principal") have entered an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the Subdivision Improvement Agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the Town to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; NOW, THEREFORE, said Principal and the undersigned as Corporate Surety are held firmly bound unto the Town and all contractors, subcontractors, laborers, material suppliers and other persons employed in the performance of the Subdivision Improvement Agreement and referred to in the aforesaid Civil Code in the sum of ninety-four thousand ($94,000) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Town in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

Should the condition of this bond be fully performed, then this obligation shall become null and void otherwise it shall be and remain in full force and effect.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\54443\1441213.9

Page 274 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
:."'"�"\� arjorie L. Szto
SURETY:

By: Rachel A Portger
Its: Attorney-In-Fact
2999 Oak Rd. #820
[Address] Its:_,__+-+-------
/, i Walnut Creek CA 94597
_767
/
7 '7--t-/!
----::::====
By: ·---[_Cit)l,-State, ZIP]
V1¼ \ruw0w
Its: C))Q
SMHH\5444311441213.9 2

Page 275 ends

State of Californ(k County of �
On � /�/ 2t)IY ,,before me, m. l<:J.;, C: 14 . ' a Notary Public, personally appe� /71,:tr fc)I"'' t: :S.v::§ , who proved to me on the basis of satisfactory evidence to be the person(s)'whose name(s) is/are subscribed to the within instrument and acknowledged to me that Wshe/ti:l@y executed the same in -1:lis/her/tlaeir authorized capacity(-iss), and that by his/her/tlTeir signature(.;) on the instrument the person(,+, or the entity upon behalf of which the person(aj acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS rny hand and official seal.

Signature
M. RINETTI Notary Public- California ConU"a Costa County Com f mission ; 2220824 My Comm. Expires Nov 5. 2021 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Califrn;qia
Co u nty of 0 ,;'-/-r ,,,_
On ---==-=.=-'-'-"--r,.',;�'!--' before ;nk, fh · -C ;nc It, · a Notary Public, personally appeared 'tJJ r,v , who proved to me on the basis of satisfactory evidence to be the person(,;) whose name( s/are subscribed to the within instrument and acknowledged to me that he/.helth
signaturet0
ey
on
execute
the instrument
d the same
the
in
person(sj,
hiE/he�'thoir
or the
authorized
entity upon
capacity(iesj.,.
behalf of whic
and
h
that
the person(
by his/
st-
�
acted,
executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
SMHH\54443\1441213.9
� e e en ce e :.R%E;, e e e f
� Notary Public - California
i Coni:a Costa County J
Commission# 2220824 �
My Comm. Expires Nov 5. 2021
September 7, 2018

Page 276 ends

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

ALLEGHENY CASUAL TY COMPANY
Bond#
One Newark Center, 20th Floor, Newark, New Jersey 07102-5207 PHONE: (973) 624-7200 0748734
KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and ALLEGHENY CASUALTY COMPANY a corporation organized and existing under the laws of the State of New Jersey, having their principal office in the City of Newark, New Jersey, do hereby constitute and appoint IVAN M. MAROEVICH, JR., RACHEL A. PORTER, WILLIAM R. GRINDELL, VALERIE D. WILLIAMS-COLE PAUL F. PERLITE.

San Francisco, CA.
their true and !awful attorney(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices.

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 20th day of July, 2010 and by the Board of Directors of ALLEGHENY CASUAL TY COMPANY at a meeting duly held on the 1 oth day of July, 2015 "RES_OLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's sea! thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obllgation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY have each executed and attested these presents on this 31st day of December, 2016

STATE OF NEW JERSEY
County of Essex
cP..SUA.£.7) ...
"'o
George R. James
Executive Vice President (International Fidelity Insurance Company) and Vice President (Allegheny Casualty Company)
1936 �
*
JERs'c:-."'"'-
On this 31st day of December, 2016 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and of ALLEGHENY CASUAL TY COMPANY; that the sea!s affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies. lN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

CERTIFICATION
Cathy Cruz a Notary Public of New Jersey
My Commission Expires April 16, 2019
I, the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of sald Companies as set forth in said Power of Attorney, with the originals on file in the home of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect. !N TESTIMONY WHEREOF, I have hereunto set my hand on this day, A00436/MOC Insurance Services.

Page 277 ends

ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this c ertificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

State of California
County of_ San Francisco
On September 07, 2018 before me, -�D
cc._
a=r�a�T�ou=c=h�,�N�o�t=a�ry�P=ub�=lic�------
(insert name and title of the officer)
personally appeared _,
R
c'
�ac
':'
h�e�l
c"
P�o
'-:
r
:"
te�r
-c-::-c-----cc----,----,---;:-----,----,-----,-----,-.,----- who proved to me on the basis of satisfactory evidence to be the personfs} whose namefs} istaFe subscribed to the within instrument and acknowledged to me that lielsheAAey executed the same in Hi&lhert'#leif authorized capacityfiest, and that by-lw.,,lhefl#leif signaturefs} on the instrument the personfs}, or the entity upon behalf of which the personfs} acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature --�/)�k--tch-"'-��-==---- (Seal)

DARA TOUCH
Notary Public - California
San Francisco County �
Cpmmission # 2159426 ::

M Comm. E,xpires Jul 9, 2020

Page 278 ends

FAITHFUL PERFORMANCE BOND

EXECUTION COPY
BOND NUMBER: 0748735
PREMIUM: $2,917
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SUMMERHILL N40 LLC (herein designated as "Principal") have entered an agreement by which Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of the Subdivision Improvement Agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and INTERNATIONAL FIDELITY INDEMNITY COMPANY, as Surety, are held and firmly bound unto the Town, in the penal sum of three hundred and seven thousand ($307,000) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, formally by these presents.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the w'ork to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Subdivision Improvement Agreement or to the work or to the specifications.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\54443\1441213.9 1

Page 279 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
By:

By:
l:dr{aio�ie L. Szto
SMHH\54443\1441213.9 2
SURETY:

INTERNATioriii:L FIDELITY INDEMNITY

COMPANY
By: Rachel A Portger
Its: Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
[City, State, ZIP]

Page 280 ends

State of CaliforJJia /v __ ,
County of __ t.Mf,-c..,=�--��=-
)
)
On 3/ Jo, 2d l'Y . . before me. f"l · 4e-fh · a
_
Notary
_
Public. personally
appeared /l2""".Jpr• e Sl,,-1-<> . who proved to me on the basis of satisfactory evidence to be the person(<>1 whose namefs) is/are subscribed to the within instrument and acknowledged to me that 19e/she/tooy executed the same in Ris/her/tA-eir authorized capacityfi,,s), and that by A-is/her/their signature(s, on the instrument the person(s-). or the entity upon behalf of which the person(-&) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
e e e e e e e e e
M. RINETTI l Notary PubHc - California
Contra Ccsta County f Commission# 2220824 �
My Comm, Expires Nov 5. 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Califor
County of 6 n1n ...
)
)
On fJ:f � /() 2()1)> , before me, /VI · fGhe_l/2 · , a Notary Public, personally appe� �Vh r,::, 11n� 1../:,lf , who proved to me on the basis of satisfactory evidence to be the person(&) whose name�) is/are subscribed to the within instrument and acknowledged to me that he/shedh'-Y executed the same in his/19-efAAeir authorized capacity(ies), and that by his/herfll%lir signature(s) on the instrument the person(s). or the entity upon behalf of which the personEs) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
SMHH\54443\1441213.9 1
M. RINETTI �
Notary Public - California
Contra Costa COtJnty f
Commiuion f 2220824
My Comm� !:!1::pirea Nov 5. 2021

Page 281 ends

LABOR AND MATERIALS BOND

EXECUTION COPY
BOND NUMBER: 0748735
PREMIUM: included
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SummerHill N40 LLC (hereinafter designated as "Principal") have entered an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the Subdivision Improvement Agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the Town to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; NOW, THEREFORE, said Principal and the undersigned as Corporate Surety are held firmly bound unto the Town and all contractors, subcontractors, laborers, material suppliers and other persons employed in the performance of the Subdivision Improvement Agreement and referred to in the aforesaid Civil Code in the sum of three hundred and seven thousand ($307,000) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Town in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Subdivision Improvement Agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition.

In witness whereof, this instrument has been duly executed by the Principal and Surety above named, on September 7th, 2018.

SMHH\5444311441213.9

Page 282 ends

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
By: (
By:
__J_.JD4ru____,1�� .......... ==-
SMHH\54443\1441213.9
SURETY:

NTEI�ilrr ATINALFIDELITY INDEMNITY

COMPANY
By: Rachel A Portger
Its: Attorney-In-Fact
2999 Oak Rd. #820
[Address]
Walnut Creek CA 94597
------·
[City, State, ZIP]
2

Page 283 ends

State of Califoq;)ja
County of �,rlr-,.,,
On � Jr}. 0 IY , before me, /J1 · K.!Y?e·/h · , a Notary Public, personally appe� /?J,t,:;t7-Yi C 52---17) , who proved to me on the basis of satisfactory evidence to be the person(s)-whose name(-s) is/a.., subscribed to the within instrument and acknowledged to me that helshe/tooy executed the same in �/her/their authorized capacity(ie&), and that by Ais/her/tReif signature(,;) on the instrument the person(s,, or the entity upon behalf of which the person(st acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature '--Jn · �/$�
eeeeeeeeA� M. RINETTl
Notary Pcabiic - California z
Co11tra Costa Couniy �
Commissiori # 2220824 �
My Comm. Expires Nov 5, 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of CalifortJJ? 4 , .1._ County of QrJt/',<_, Co.Jv' ""-- On � Id � , before me, /7'1 ·Kr'nc,/,t, ·
, a
_
Notary Public, personally
appeared z �rh.6tJ,-- 'who proved to me on the basis of satisfactory evidence to be the person(,;;.) whose name(& is/a.e-subscribed to the within instrument and acknowledged to me that hc/.he/lh@y executed the same in his/-Me1/ll1eir authorized capacity(ies), and that by his/h� signature(%) on the instrument the person(st, or the entity upon behalf of which the person(s.) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature
SMHH\54443\1441213.9
M. RINETTI Notary Public- California
Cont�a �Os!B County Comm1ss1on # 222oa24 hly Comm. Expires Nov 5. 2021 September 7, 2018

Page 284 ends

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

ALLEGHENY CASUAL TY COMPANY
Bond#
One Newark Center, 20th Floor, Newark, New Jersey 07102-5207 PHONE: (973) 624-7200 0748735
KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and ALLEGHENY CASUALTY COMPANY a corporation organized and existing under the laws of the State of New Jersey, having their principal office in the City of Newark, New Jersey, do hereby constitute and appoint IVAN M. MAROEVICH, JR., RACHEL A. PORTER, WILLIAM R. GRINDELL, VALERIE D. WILLIAMS-COLE PAUL F. PERLITE.

San Francisco, CA.
their true and lawful attorney(s)-in-fact to execute, seal and deliver for and on its behalf as surety, any and all bonds and undertakings, contracts of indemnity and other writings obligatory in the nature thereof, which are or may be allowed, required or permitted by law, statute, rule, regulation, contract or otherwise, and the execution of such instrument(s) in pursuance of these presents, shall be as binding upon the said INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY, as fully and amply, to all intents and purposes, as if the same had been duly executed and acknowledged by their regularly elected officers at their principal offices.

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 2oth day of July, 2010 and by the Board of Directors of ALLEGHENY CASUALTY COMPANY at a meeting duly held on the 1oth day of July, 2015 "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or related thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be affixed by facsimile to any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seal of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY have each executed and attested these presents on this 31st day of December, 2016

JN TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

CERTIFICATION
Cathy Cruz a Notary Public of New Jersey
My Commission Expires April 16, 2019
l, the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUAL TY COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

IN TESTIMONY WHEREOF, I have hereunto set my hand on this day, A00436/MOC Insurance Services.

Page 285 ends

ACKNOWLEDGMENT
A notary public or other officer completing this
certificate verifies only the identity of the individual who signed the document to which this certificate is
attached, and not the truthfulness, accuracy, or
validity of that document.

State of California
County of_ San Francisco
On September 07 , 2018
)
before me, _ ____,D':'
a�r�a�T
;---
o�u�c�h�,�N�o�t
:"'
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(insert name and title of the officer)
personally appeared �R�ac":'
h�e�l
':-'
P�o�rtc-'-
e�r'-:--:----:--:----:----:------:-:------,---:----,-------- who proved to me on the basis of satisfactory evidence to be the personfs} whose namefs} istare subscribe d to the within instrument and acknowledged to me that lle/sheltRey executed the same in Ri&lherAAeif authorized capacityfiest, and that by-il-i&lhefl#le+F signaturefs} on the instrument the personfst, or the entity upon behalf of which the personfs} acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct .

WITNESS my hand and official seal.
(Seal)

Page 286 ends

PREPARED BY: Ryan Baker
Library Director
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: 05/16/2023
ITEM NO: 10
DATE: March 8, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a California State Library Negotiated Contract with Columbia Telecommunications Corporation for Continued Service of the Library’s Corporation for Education Network Initiatives in California Broadband Connection and Servicing
RECOMMENDATION:

Approve a California State Library negotiated contract with Columbia Telecommunications Corporation for continued service of the Library’s Corporation for Education Network Initiatives in California broadband connection and servicing.

BACKGROUND:

The Library’s internet broadband is provided through a partnership with the California State Library and the Corporation for Education Network Initiatives in California (CENIC), which was administered by the Califa Corporation from 2015 through 2022. In 2022, the California State Library began transitioning administration of the program to the Columbia Telecommunications Corporation (CTC). As part of this transition, it is necessary for the Library to enter into a new contract with CTC to continue our subsidized broadband service.

The CENIC broadband program provides highly subsidized rates for broadband internet service for the public through the CalREN broadband infrastructure that connects the majority of public libraries, public colleges and universities, and K-12 schools in California.

The terms of the contract are approved by the California State Library and are therefore nonnegotiable.

Page 287 ends

PAGE 2 OF 2
SUBJECT: Library Broadband
DATE: May 16, 2023
FISCAL IMPACT:

No fiscal impact. Funding is already included in ongoing Library operating budgets. Rates are heavily subsided through State funds.

ENVIRONMENTAL ASSESSMENT:

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

Attachment:

1. Contract agreement between Library and CTC

Page 288 ends

Master Agreement Page 1 of 7

AGREEMENT BETWEEN LOS GATOS LIBRARY AND COLUMBIA

TELECOMMUNICATIONS CORPORATION

FOR THE PROVISION, INSTALLATION AND MAINTENANCE OF

ADVANCED NETWORK (DATA) SERVICES
This Agreement, hereinafter referred to as “Agreement”, is entered into as of May 17, 2023 by and between Columbia Telecommunications Corporation d/b/a CTC Technology and Energy, hereinafter referred to as “CTC” and the Los Gatos Library, hereinafter referred to as “Library”. CTC and Library are sometimes referred to in this Agreement individually as “Party” and collectively as “Parties”. All written communications between the parties shall be addressed as follows unless and until amended in writing by the respective party.

Los Gatos Library
Laurel Prevetti
Town Manager
100 Villa Ave
Los Gatos, CA 95030
CTC Technology and Energy
Heather D. Mills
Vice President, Grant & Funding Strategies
10613 Concord Street
Kensington, MD 20895
[email protected]

WITNESS THAT
WHEREAS, CTC, is the Statewide Broadband Access Administrator for the California State Library Broadband Services Project (“Project”); and
WHEREAS, CTC, on behalf of the California State Library, has contracted with the Corporation for Education Network Initiatives in California (“CENIC”) and its subsidiaries to provide high speed networking to libraries in California; and
WHEREAS, Library desires to enter into an agreement with CTC to obtain one or more data circuits to connect Library to the CENIC high speed broadband fiber network, CalREN, and, if specified in Appendix #1, attached, to connect Library to other library sites as identified in said Appendix for the purpose of connecting to CalREN.

NOW THEREFORE, Library and CTC enter into this Agreement:

1. Purpose
It is the purpose of this Agreement to set forth the terms and conditions applicable to the provision of communications and related network services to Library under the Project.

2. Services to be Provided
Parties understand that the primary communications infrastructure provided by CENIC is the California Research and Education Network ("CalREN"). Services that CENIC will provide to Libraries will include use of CalREN and contracting for and provision of data circuits supplied by network service providers.

ATTACHMENT 1 Page 289
Master Agreement Page 2 of 7
CTC, on behalf of Library, will contract with CENIC for such data circuits. Specific circuits and their costs are included in the Appendix #1 attached which may be amended from time to time by mutually signed Addenda (“Services”). CTC assures Library that CENIC or CTC will notify Library of installation requirements and necessary maintenance instructions. Neither CENIC nor CTC shall be responsible for operating or maintaining software, equipment or cabling that connects equipment or network services not provided by CENIC for the Services unless specifically agreed to in writing by CENIC.

Parties agree to provide notice to the other Party within 10 calendar days of a failure by CENIC or the network service provider to deliver Services, or otherwise comply with the terms as described in this Agreement, including Appendix #1 and subsequent Addenda. If noticed non-performance is not cured in a timely manner, Parties agree to meet within 10 days of said notice and discuss appropriate remedies including but not limited to cancellation of related services or service credits as specified in the underlying agreements between CENIC and its network service provider and CTC and CENIC.

Library is responsible for calculating and paying any early termination penalties that might apply due to cancellation of existing connections so that it may receive Services under this Agreement.

Library is responsible for completing, signing, and submitting any required Letter of Agency, or related documentation, to confirm its participation in and eligibility for the E-rate Consortia and to authorize CENIC, as the E-rate Consortia lead, to act on its behalf as described under the Letter of Agency for the purpose of securing E-rate discounts.

Library is further responsible for completing, signing, and submitting any responsible Letter of Authorization, or related documentation, to the California Public Utilities Commission to authorize CTC and CENIC to act on its behalf to submit an application and supporting documentation for the purpose of receiving discounts on eligible network services as part of the California Teleconnect Fund program.

If Library is currently receiving E-rate funding for its existing services, Library remains responsible for continuing to apply for that E-rate funding until all CENIC Services are turned up and existing E-rate supported services are canceled.

3. Term and Termination of this Agreement
(a) TERM OF THIS AGREEMENT. This Agreement shall be in effect from May 17, 2023 until the termination of all Services including the circuits ordered under this Agreement (as defined in Appendix #1: CENIC Circuit Quote and any subsequent Addenda under this Agreement), or unless otherwise terminated by a Party pursuant to the terms of this Agreement. Specific terms for the circuits provided pursuant to this Agreement shall depend on the specific date such circuit is “handed off” to Library pursuant to Appendix #1 or subsequent Addenda or as noticed in writing by CENIC to Library. (b) TERMINATION. Termination of this Agreement prior to the end date of any given circuit, as described in Appendix #1 or subsequent Addenda, shall result in Library paying any applicable circuit telecommunications carrier termination charges or similar early termination charges that CTC incurs under its agreement with CENIC resulting from early termination of the Service.

Page 290 ends

Master Agreement Page 3 of 7
(c) Notwithstanding the above, upon a sixty (60) day written notice prior to the second and each following June 30 after a circuit is installed, Library may cancel a circuit without penalty if it verifies to CTC and CENIC that funding to pay for that circuit is not available and Library agrees that for at least 12 months after said notice it will not order or otherwise obtain a replacement circuit or substantially similar services in place of the cancelled circuit. (d) Library may terminate this Agreement with no penalty if non-recurring, one-time costs for all circuits included in Appendix #1 and any subsequent Addenda are materially increased by the telecommunications carrier from the amount shown in Appendix #1. (e) CTC may terminate this Agreement or assign its rights and responsibilities under this Agreement to a third party upon no less than sixty (60) day written notice to Library, in the event of termination or expiration of its duties and obligations under the Project and with written approval of the California State Library.

4. Payment
CTC bills quarterly in arrears. Payment for services shall be due within thirty (30) days of receipt of a CTC invoice reflecting provision of the services for which the invoice is sent; or as otherwise agreed to by Library and CTC. Except for non-recurring costs, if any, costs in Appendix #1 and any subsequent Addenda shall only begin upon installation of circuit(s). Library will put forth reasonable efforts to make payments within thirty (30) days after receipt of invoice. Library understands and agrees that CTC will only make payment to CENIC for services upon receipt of related payments from Library. If Library fails to make payments within thirty (30) days after receipt of invoice, it agrees to pay any reasonable late payment fees incurred by CTC under its agreement with CENIC.

Unless otherwise agreed to between the Parties, all circuit deployment fees, if any as set forth in Appendix #1 and subsequent Addenda are non-cancelable and nonrefundable. Upon termination of this Agreement, or any Services provided under this Agreement, any outstanding circuit deployment fees, outstanding recurring charges, non-recurring fees, applicable circuit termination charges, and applicable early termination penalties, shall become due and payable immediately upon termination.

5. Miscellaneous
(a) CONDITIONS OF USE. Library agrees to conform to the CENIC Appropriate Use Policy located at https://cenic.org/network/policies/acceptable-use-policy (revised September 13, 2004) and to any specific conditions of use imposed by network service providers or subcontractors providing communications services to CENIC as may be in force at the time such services are made available, including pursuant to an Addendum to this Agreement. If CENIC, subcontractors, or network service provider conditions of use are modified, Library will be notified and if Library believes it can no longer conform to their requirements, Library shall have one hundred eighty (180) days from the notice of the modification to terminate the affected Service(s) without penalty. Library must provide a 30-day written notice of its termination under this provision to CTC and CENIC. If Library does not elect to terminate the Service(s), Library must conform to the revised conditions of use. If Library fails to conform to the revised conditions of use, the Services may be subject to termination upon sixty (60) day notice to Library from CTC or CENIC.

Page 291 ends

Master Agreement Page 4 of 7
(b) CONFLICTING CLAUSES. If any clause in this Master Agreement is in conflict with a clause in an Addendum to this Agreement, the language in the Addendum shall take precedence only for the service defined in that Addendum. (c) FORCE MAJEURE. Neither Party shall be responsible for performance of its obligations hereunder where prevented, delayed, or hindered by war, riots, embargoes, strikes involving third parties, acts of third party communications service providers, including any local access provider, or of their vendors, or suppliers unrelated to the services offered under this Agreement, acts of unrelated third parties, accidents, cable cuts by third parties not related to services provided under this Agreement, natural disasters, act(s) of God or any other event beyond the reasonable control of the Parties.
(d) GOVERNING LAW. The laws of the State of California shall govern this Agreement. (e) NON-LIBRARY USES: Library understands that this agreement covers only library use of CalREN and of circuits provided hereunder and Library agrees that no other uses will be made of the services provided herein.

6. Entire Agreement
This Agreement and any Addenda contemporaneously or subsequently executed by the parties constitute the entire Agreement between the parties regarding the subject matter of this Agreement and supersede all prior written or oral agreements with respect to such. This Agreement may not be modified orally, and no modification or amendment shall be binding unless in writing and signed by authorized representatives of both parties.

7. General Provisions

7.1 Nondiscrimination: During the performance of this Agreement, (a) CTC and its subcontractors shall not deny the Agreement’s benefits to any person on the basis of religion, color, ethnic group identification, sex, age, physical or mental disability, nor shall they discriminate unlawfully against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, mental disability, medical condition, marital status, age (over 40) or sex. (b) CTC shall ensure that the evaluation and treatment of employees and applicants for employment are free of such discrimination.

7.2 Severability: It is expressly agreed and understood by the Parties hereto that if any provision of this Agreement is held to be or invalid under any applicable statute or rule of law, it is deemed to that extent to be omitted. However, the balance of the Agreement shall remain in full force and effect.

7.3 Rights and Remedies: The rights and remedies of the Parties provided herein shall not be exclusive and are in addition to any other rights and remedies provided by law.

7.4 Prior Agreements: Library agrees that any prior agreements entered into between any entity that previously served as the Broadband Administrator and the Library for the purpose of participating in the CENIC E-Rate Consortium or receiving services pursuant to that program has been terminated.

Page 292 ends

Master Agreement Page 5 of 7

8. Indemnification. Library agrees to indemnify, defend and save harmless CTC, its, officers, agents and employees from any and all claims, losses, and liabilities accruing or resulting to CTC and any and all contractors, subcontractors, suppliers, laborers and any other person, firm or corporation furnishing or supplying work services, materials or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by Library in the performance of this Agreement, but only in proportion to and in the extent such liability, loss, expense, attorneys’ fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of Library, its officers, agents, or employees. CTC agrees to indemnify , defend, and save harmless Library, its trustees, officers, agents and employees from any and all liabilities accruing or resulting to Library and any and all contractors, subcontractors, suppliers, laborers and any other person, firm or corporation furnishing or supplying work services, materials or supplies in connection with the performance of this Agreement, and from any and all claims and losses accruing or resulting to any person, firm or corporation who may be injured or damaged by CTC in the performance of this Agreement, but only in proportion to and in the extent such liability, loss, expense, attorneys’ fees, or claims for injury or damages are caused by or result from the negligent or intentional acts or omissions of CTC, its officers, agents, or employees.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized representatives.

For Library For Columbia Telecommunications Corporation

Signature Signature
Joanne S. Hovis
Name Name
President
Title Title

Date Date

Page 293 ends

Master Agreement Page 6 of 7
Appendix #1
Provision, Installation and Maintenance
Of Advanced Network (Data) Services:

Reimbursement of Circuit Costs
This Appendix lists the circuits contracted for by CENIC on behalf of CTC and the Library for connecting CENIC’s fiber optic backbone to Library and for library connections that are not direct connections to CENIC’s fiber optic backbone, e.g. direct connections between libraries (defined as “Services” in the Agreement). Library understands that CENIC will bill CTC, and CTC will bill Library, for the costs of circuits charged by network service providers, including any taxes and surcharges, and any one-time installation fees. Prior to approval of CENIC’s Erate Consortium Library Application, not all applicable E-rate and CTF discounts will be reflected on invoices. After the E-rate Application for any given year is approved, the network service provider will coordinate with CENIC to provide appropriate credits and such credits will be passed from CENIC to CTC and from CTC to the Library. Such credits are typically issued sometime during the fiscal year after the year in which the circuits are installed and Services are first provided. In subsequent years, credits continue to be issued in the fiscal year after the year for which Services have been provided. Library further understands that the exact discounted cost of circuits will not be known until after the E-rate Consortium Library Application is approved. The actual start date of the Service, and therefore of circuit costs, will be dependent on coordination among CENIC, the Library and the network service provider. Any one-time (Non-recurring or NRC) costs included below are typically invoiced by carriers prior to circuit installation and will be invoiced to Library upon receipt of invoice to CENIC from the network service provider.

Page 294 ends

Quote For Los Gatos
Customer: Los Gatos Public Library
Budget Summary Description: 1Gbps to CENIC Hubsite
Line Item NRC
Non-Recurring Cost
MRC
Monthly Recurring Cost
ARC
Annual Recurring
Cost
1 Equipment $0.00 $0.00 $0.00
2 Maintenance $0.00 $0.00 $0.00
3 Installation $0.00 $0.00 $0.00
4 Circuit $0.00 $731.70 -
Total $0.00 $731.70 $0.00
Annual Cost $8,780.40
E-rated Annual Cost† $2,634.12
Total for Year 1 $8,780.40
E-rated Total for Year 1† $2,634.12
*Pricing does not include applicable taxes, surcharges, and fees. These costs may vary and will be included in invoices at CENIC’s actual cost.
*If an Out of Band line is required, customer must provide a phone line for OOB or allow CENIC to order one and be reimbursed for both the one-time installation and ongoing monthly recurring costs. *NRC items are one-time costs billed upon execution of contract. *MRC items are billed quarterly.
†E-rate discount: percent discount indicated is an estimate based on data available at the time the quote was generated. Actual discount percentage will be identified by the E-rate authorities at a later point †E-rate and CTF reimbursements are dependent upon the continued funding of these programs. CENIC/Califa cannot guarantee the E-rate and CTF discounts, and these discounts are subject to change. †E-rate Costs may take up to 18 months to activate due to USAC processing time Version: 1.0

Page 295 ends

Los Gatos Carrier Costs
*Pricing does not include applicable taxes, surcharges, and fees. These costs may vary and will be included in
invoices at CENIC’s actual cost.

E-rate discount: percent discount indicated is an estimate based on data available at the time the quote was generated. Actual discount percentage will be identified by the E-rate authorities at a later point
LOC A** Carrier Info E-rate Discount 40.00% Total Discounted MRC Total Discounted NRC Site Name Site Name Service
Provider
Requested
Bandwidth
Est Contract End
Date
Non Recurring
Cost
MRC for 5 year
term
Discounted NRC Discounted MRC $219.51 $0.00
Los Gatos Public Library - Los
Gatos Public Library CENIC Hubsite AT&T 1Gbps 7/1/2025 $0.00 $731.70 $0.00 $219.51

Page 296 ends

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 05/16/2023
ITEM NO: 11
DATE: May 11, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Recommendations of the Finance Commission and Staff, and Provide Direction on the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year (FY) 2023/24 and on the Proposed Capital Improvement Program for FY 2023/24 – FY 2027/28; Including but Not Limited to:
a. Provide direction to Balance the FY 2023/24 Proposed Budget; b. Provide Direction on the Proposed Operating Budget;
c. Provide Direction on the Proposed Capital Budget; and d. Consider the FY 2023/24 List of Potential Donations Consistent with the Town’s Donation Policy
RECOMMENDATION:

Staff recommends the Town Council consider the recommendations of the Finance Commission and staff, and provide direction on the Town of Los Gatos Proposed Operating and Capital Budgets for Fiscal Year 2023/24 and the Town of Los Gatos Proposed Capital Improvement Program for Fiscal Years 2023/24- 2027/28, including but not limited to:
a. Provide direction balancing the FY 2023/24 Proposed Budget; b. Provide direction on the Proposed Operating Budget;
c. Provide direction on the Proposed Capital Budget; and d. Consider the FY 2023/24 List of Potential Donations consistent with the Town’s Donation Policy.

BACKGROUND:

On April 17, 2023, the Proposed FY 2023/24 Operating and Capital Budgets were posted to the Town’s website and the links were provided to the Finance Commission. For Commissioners who were interested in hard copies, the documents were provided.

Page 297 ends

PAGE 2 OF 9
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 11, 2023
BACKGROUND (continued):

Per Measure A, the Finance Commission received the Proposed Budgets 21 business days before May 16, 2023, which is the first meeting at which the Proposed Budgets will be considered by the Town Council.

The Proposed Operating and Capital Budget for FY2023/24 (Attachment 1) is a comprehensive financial plan that reflects the values of the Town, Council priorities, and community expectations for high levels of municipal services provided by the Town of Los Gatos. The Proposed FY 2023/24 – 2027/28 Capital Improvement Program (Attachment 2) is a five-year capital improvement plan which identifies projects to construct and maintain the Town’s infrastructure. The Transmittal Letters contained in both the Proposed Operating and Capital Budgets provide an overview of the recommendations for next fiscal year, including the fiscal outlook, key budget assumptions, and other information.

Both budget documents were prepared with contributions from all Town Departments. Of particular note, the Finance Department took the lead in developing revenue and expenditure forecasts, ensuring that the most current information was used in the preparation of the proposed budgets. In addition, the Department of Parks and Public Works identified high priority projects for inclusion in the Capital Budget based on input from the Town Council; familiarity with the Town’s facilities, equipment, and infrastructure; and the Department’s work with various Town Commissions on these assets.

The Proposed FY 2023/ 24 Budget endeavored to maintain essential public services while controlling operational costs. The Five-Year Financial Forecast predicts operating shortfalls in subsequent fiscal years even with a built in vacancy factor of 4%. The loss of previously projected future growth in revenues in conjunction with increasing expenses continues to illustrate persistent deficits in future years. The deficits are on the order of approximately $2.8 to $4.0 million per year and can currently be resolved through a combination of expenditure controls and the use of one-time funds.

Even with areas of continued uncertainty, this Budget positions the organization well for continued excellence in service delivery to the community. However, in the event prepandemic revenue growth projections do not return and/or new revenue sources are not identified, the current projected deficits may need to be addressed through service delivery reductions or service outsourcing. If this occurs, the Council will need continued input from the community to identify acceptable organizational changes and service levels. Last year’s community survey provides useful insights into community prioritization of service delivery.

In addition to the Proposed Budget, the Town Council is being asked to consider the Finance Commission recommendations contained in Attachment 3. The Town Council is also being asked to consider corrections based on additional review and analysis since publication (Attachment 5). Any recommended changes and additional direction to the Proposed

Page 298 ends

PAGE 3 OF 9
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 11, 2023
BACKGROUND (continued):

Operating and/or Capital Budgets provided by Council at the May 16, 2023 budget hearing will be incorporated into the implementing resolution to be presented for final Council approval on June 6, 2023. Finally, the Council is asked to review the annual list of donations (Attachment 7).

To help the Council work through the material, staff recommends that the Council discuss and make individual motions as appropriate on the following items as presented in this staff report:
 Five-Year Forecast (motions are welcome to change any of the assumptions in the Forecast)
 Direction to Balance the Proposed FY 2023/24 Operating Budget  Finance Commission’s four recommendations
 Consideration of any funding requests (as of the date of this report, the Town has received one from the Veterans Foundation, see Attachment 8)  Any other direction on the Proposed FY 2023/24 Operating Budget  Any other direction on the Proposed FY 2023/24– 2027/28 Capital Budget  Consideration the Proposed Donation List
DISCUSSION:

Overview of Proposed Operating Budget and Five-Year Forecast The FY 2023/24 General Fund Budget (excluding restricted pension trust revenues) programs total revenues and reserve transfers of $56.1 million and expenditures and allocations of $56.1 million. The Budget does not include new programs and does maintain existing service with modest staffing adjustments. This Budget also provides for limited, continued strategic investments toward important wildfire vegetation management as Federal grant funding allows and other necessary infrastructure improvements to protect our community’s health and safety.

The Five-Year Forecast takes a forward look at the Town's General Fund revenues and expenditures and is updated regularly. Its purpose is to identify financial trends, potential shortfalls, and other issues so the Town can proactively address them and budget accordingly.

It does so by projecting out into the future the fiscal results of continuing the Town's current service levels and policies. This process helps to provide a snapshot of what the future may look like as a result of the decisions made to date.

Revenue forecasts for the current Budget (Attachment 4) have been developed in close consultation with the Santa Clara County Assessor, Town Sales Tax consultant MuniServices, and a review of national and regional hospitality research.

Page 299 ends

PAGE 4 OF 9
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 11, 2023
DISCUSSION (continued):

In addition to revenue projections, the Proposed Budget also forecasts anticipated increases in the Town’s pension obligation payments and salaries as well as other expenditures (Attachment 4). As a service delivery enterprise, the cost of salaries and benefits are a significant portion of the budget. The delivery of Town services is highly dependent on recruiting and retaining talent which comprises 64.4% of budgeted General Fund expenditures for FY 2023/24. Given the high dependence on labor for service delivery, the Town has helped manage salary escalation (and benefits) through the maintenance of lower staffing levels. However, even with the Town reducing its full-time employees by 15.0% to 153 FTE employees since 2001, costs per employee continue to escalate as evidenced by pension benefit costs having increased 35% in the last five years.

Balancing the Proposed FY 2023/24 Operating Budget
For FY 2023/24 the Proposed Operating Budget was balanced utilizing two primary budget balancing strategies. The first was direction to all Departments to develop a status quo budget.

To that end, the Departments programmed existing resources by either maintaining current structures or realigning operations to remain effective. This proved exceptionally difficult as vendor, supply, and other costs rose beyond FY 2022/23 levels. In addition, Departments were provided guidance to enhance capacity where necessary through limit-dated non-benefited personnel options when possible.

The second strategy is the use of $1.6 million of the Town’s Other Post-Employment Benefits resources to pay for the retiree medical expenses.

Overview of Proposed Capital Budget
The FY 2023/24 – FY 2027/28 Capital Improvement Program (CIP) sets forth a five-year plan for proposed streets, parks, and public facility projects. The Transmittal Letter contained in the CIP provides a summary of the program including funding sources, recently completed projects, and the proposed projects for FY 2023/24. The proposed $37.8 million in the first year of the CIP is comprised of approximately $27.6 million in carryover funds from FY 2022/23 and approximately $10.1 million in new funding. The $10.1 million of new funding is comprised of $5.5 million in General Fund Appropriated Reserve (GFAR), $2.4 million in grants and $2.2 million from other sources. Only the first year of the plan is formally adopted with funds appropriated by the Town Council as part of the budget process.

The first year of the five-year CIP (FY2023/24) continues funding for the Town Council Strategic Priorities, including basic infrastructure needs. In January 2023, the Town Council established the 2023-25 Strategic Priorities. In terms of capital projects, the Town Council stated its capital

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PAGE 5 OF 9
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 11, 2023
DISCUSSION (continued):
budget priorities to continue implementation of the Downtown Parking Roadmap, continue mobility improvements for all transportation modes, manage the vegetation on Town lands to protect against wildfire, and advance other needed improvements. All of these efforts support improving and enhancing transportation options, public safety, and quality of life within the context of prudent fiscal management.

Staff is recommending that the residual and current year Measure G proceeds dedicated for capital should be programmed toward the Shannon Road Repair Project. Future year Measure G proceeds dedicated for Capital Improvement Projects should be programmed toward the State Route 17 Corridor Congestion Relief Project. At the time of the budget adoption, a resolution would memorialize the project(s) that are funded by the Measure G proceeds dedicated to the Capital Improvement Program.

On April 26, 2023, the Planning Commission reviewed the proposed CIP, found it consistent with the General Plan, and recommended its adoption by the Town Council.

Finance Commission Recommendations
As previously mentioned, the Finance Commission is tasked with a thorough review of the FY 2023/24 Proposed Operating and Capital Budgets. The Finance Commission had four recommended changes to the Proposed Budget (see Attachment 3).

The Commission’s deliberations coalesced around the following goals and observations:
 The Commission’s interest in continued enhancement of transparency in budget development, budget assumptions, and budget presentation.  The higher percentage increases in the primary expenditures of Salary and Benefits relative to revenues is constraining other investments.  The Forecast projects deficits throughout the forecast period.

The Finance Commission (FC) made four recommendations. For each FC recommendation, potential impacts are identified.

FC Recommendation: Recommend to Council to add a vacancy rate of 4.6% to the budget in order to more realistically forecast expected personnel expenses.

Staff Analysis: Staff understands that the FC would like the Proposed FY 2023/24 Budget to include salary and benefit costs that are most likely to be experienced by the Town based on

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PAGE 6 OF 9
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 11, 2023
DISCUSSION (continued):
past history. The FC also made it clear that it expects that the Town will proceed with recruitments and hiring if the Council agrees with the recommendation.

The actual vacancy rate of Town positions reflects point in time data. In the chart below, the adopted budgeted positions are provided as well as the fiscal year end vacancies for each Department and actual vacancies as of 3/31/2023 and 4/30/ 2023. Notes for specific line items indicate that recruitments are in progress and circumstances of a signed employment offer for future date. Staff anticipates hiring for all vacant positions during FY 2023/24.

A vacancy factor assumes a certain amount of salary and benefit cost savings for the entire year. The recommendation would decrease the FY 2023/24 operating expenditures by approximately $1.66 million, eliminating a deficit and the need of the anticipated Other Post Employment Benefit (OPEB) Trust Fund withdrawal to close a budget gap. Currently, there is $22.6 million in the OPEB Trust that can only be used for paying post retirement benefits. This anticipated savings is only available if the 4.6% vacancy factor materializes at the close of FY 2023/24.

Council may choose to include a lower vacancy factor, such as 4% ($1.45 million), 3% ($1.08 million), or 2% ($0.72 million). The Five-Year Forecast from FY 2024/25-through FY 2028/29 incorporated 4% vacancy factor per prior Council discussions. If Council chooses not to include a vacancy factor in the Proposed FY 2023/24 budget, staff will anticipate the use of the OPEB Trust. Under any scenario, staff would continue to monitor estimated expenditures and only would withdraw from the Trust if it is needed. The OPEB funding source was identified by Council and by the Finance Commission as the primary budget balancing strategy for FY 2022/23 and as such, it is recommended for FY 2023/24 if needed.

If Council directs staff to include a vacancy factor in the Proposed FY 2023/24 Budget, staff will closely monitor the personnel budget and return periodically (at mid-year and before closing the fiscal year) to Council for budget adjustments as needed if the vacancy savings does not materialize.

Departments
FY 2021/22
Budgeted
FY 2021/22
Filled as of
6/30/2022
FY 2022/23
Budgeted
FY 2022/23
Filled as of
3/31/2023
FY 2022/23
Filled as of
4/30/2023
FY 2022/23
Anticipated
Filled as of
6/15/23
FY 2023/24
Proposed
Town Attorney 2 2 2 2 2 2 2 Fully Staffed
Town Manager 5.25 4.25 5.25 4.25 4.25 5.25 5.25 Assistant Town Manager Starts in June 2023.

Human Resources 3 3 3 2 2 3 3 Fully Staffed
Finance 7 7 7 6 6 6 7 Recruitment in Progress
Clerk 3 3 3 3 3 3 3 Fully Staffed
Information Technology 3 2 3 3 3 3 3 Fully Staffed
Community Development 19.75 19.75 20 20 20 19 20 Recruitment in Progress Police Department 60 50 60 51 52 52 60 Police Officer and Communication Dispatcher Recruitment in Progress Parks & Public Works 34.75 31.75 36.75 32.75 33.75 35.75 35.75 Recruitment in Progress Library 12.5 11.5 13.5 13.5 13.5 13.5 13.5 Fully Staffed Total 150.25 134.25 153.5 137.5 139.5 142.5 152.5

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PAGE 7 OF 9
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 11, 2023
DISCUSSION (continued):

In addition, staff recommends that Council establish an unassigned General Fund Reserve to provide funding as needed. If all of the estimated vacancy savings materializes, there is no need to draw down on this reserve and the reserve would be available for the next budget cycle. Staff also recommends updating the General Fund Reserve Policy to memorialize the proposed changes. A potential source of the unassigned balance could be the Residual Measure G Proceeds – Operating, additional funding freed up from the Catastrophic and Budget Stabilization Reserves due to the reduced overall expenditures, and Capital/Special Project Reserve. Please note that every time a salary and benefit budget increase is necessary, the Catastrophic and Budget Stabilization Reserve must be replenished to meet our Reserve Policy requirements.

FC Recommendation: Recommend to Council the fully recognize the Educational Revenue Augmentation Fund (ERAF) for FY 2023/24.

Staff Analysis: The County of Santa Clara Controller – Treasurer’s Office provided information on March 2023 regarding the FY 2022/23 ERAF distribution ($2,298,691.60) and the preliminary estimates on the FY 2023/24 ERAF distribution ($2,203,000). The calculations and projections are based on the State February reports with adjustment to the latest property tax revenues.

The decline in the next year’s preliminary excess ERAF estimate is mainly due to the increase in the funding requirement for the State’s special education programs. The County also advised Town staff that, due to the litigation over the Excess ERAF calculation brought by the California School Board Association and the State’s revisiting the treatment of Redevelopment agency’s dissolution revenue in the calculation (starting FY 2020-21 distribution), about 30% of the provided amounts are considered at-risk.

If Council wishes to proceed with this recommendation, staff suggests that the Council establish a General Fund ERAF Risk Reserve and reserve 30% of the anticipated proceeds in FY 2022/23 and FY 2023/24. Staff recommends continuing to reserve the at risk amount until the lawsuit is finalized. If the result of the lawsuit in unfavorable to the Town, the County will reduce the Town Property Tax distribution by the at risk amount; in this case, this reserve would provide the funding gap. If the lawsuit result is favorable to the Town, staff will come back to Council direction on how to spend the accumulated reserve. Other jurisdictions in Santa Clara County started to reserve the at risk amount. The Town fully recognized the FY 2020/21 and FY 2021/22 ERAF revenue. Since then, staff learned that the unfavorable result will be retroactive to those two fiscal years as well. The potential at risk amount for FY 2020/21 is $612K and $712K for FY 2021/22.

FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24
Actuals Actuals Estimated Proposed
ERAF Proceeds $ 2,043,321 $ 2,371,984 $ 2,298,692 $ 2,203,000 30% at Risk $ 612,996 $ 711,595 $ 689,608 $ 660,900

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PAGE 8 OF 9
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 11, 2023
DISCUSSION (continued):

If Council wishes to reserve the FY 2020/21 and FY 2021/22 at risk amounts retroactively, the Capital/Special Project Reserve would be reduced by the same amount.

FC Recommendation: Recommend to Council that staff include transparency and the ability to track variance from budget, Schedules C-9, C-10, C-14, C-26 should be adjusted to show the detail of the salaries and benefits broken out major categories such as Salary, Overtime, CalPERS Benefit, All Other Benefits, and OPEB Pay as you Go Benefits.

Staff Analysis: The Financial Summaries provide multiple schedules of the Town Finances by different categorization. The majority of the requested information is also included on page A7 of the Transmittal Letter. Staff recommends that the staff include a separate stand alone presentation of the requested information in the Proposed FY 2023/24 Budget and redesign the requested table presentation for the FY 2024/25 Proposed Budget.

FC Recommendation: Recommend to Council that staff include a capital outlay budget which forecasts the annual capital outlay for each funded project over the 5-year planning horizon on pages B-5 and B-6 of the Capital Improvement Budget.

Staff Analysis: Staff can provide the information if Council requests it. We recommend that the information be provided outside of the budget book as a stand alone table.

Consideration of Any Funding Requests
As the Council considers individual requests for new spending, the Council should consider these requests in the context of the Proposed Operating Budget and identify the source(s) of funding for the(se) item(s). At the time of the preparation of this report, one request has been submitted to the Town from the Veterans Foundation (see Attachment 8).

Donation Opportunities - FY 2023/24 List of Town Needs
As part of the budget development process, the List of Town Needs is updated annually per Town Council Donation Policy (Attachment 6) to reflect goods, services, and other contributions that would help enhance Town services, programs, and events (Attachment 7).

CONCLUSION AND NEXT STEPS:

At its May 16, 2023 meeting, the Council will have an opportunity to listen to public testimony, ask questions, consider the Finance Commission’s recommendations, deliberate, and direct changes to the Proposed Operating and/or Capital Improvement Program Budgets. Any changes to the Proposed Operating and/or Capital Budgets directed by Council or identified by

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PAGE 9 OF 9
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 11, 2023
CONCLUSION AND NEXT STEPS (continued):
staff (see Attachment 5.) will be included for Council consideration in the resolution formally adopting the Budgets to be considered by Council on June 6.

During and after the Budget adoption, staff continues to monitor revenues and expenditures closely and will report to the Town Council actual revenues and expenditures later in the year as the data become available. Any modifications needed will be brought back to the Council as Budget Adjustments.

COORDINATION:

The preparation of the budget documents involved the participation of all Town Departments.

The Finance Commission deliberated and provided its recommendations to the Council as discussed in this report.

FISCAL IMPACT:

Under State law, the Town Council is required to enact a balanced budget. The Proposed Operating and Capital Budgets are balanced and as the Council directs changes, the outcome must be a balanced fiscal plan.

ENVIRONMENTAL ASSESSMENT:

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

Attachments Provided to the Council Prior to the Distribution of this Report:

1. FY 2023/24 Proposed Operating Budget
https://www.losgatosca.gov/2858/Proposed-FY-2023-24-Operating-Budget

2. FY 2023/24 – 2027/28 Proposed Capital Improvement Program Budget https://www.losgatosca.gov/2859/Proposed-2023-24-Capital-Budget Attachments Provided with this Report:

3. FY 2023/24 Finance Commission Operating and Capital Budget Recommendations

4. Revenue and Expense Forecast Assumptions

5. List of updates related to corrections based on staff and Commissioners review and comments

6. Town of Los Gatos Donation Policy

7. Town of Los Gatos Donation Opportunities: FY 2023/24

8. Public Comment Received Before 11 a.m. on May 11, 2023

Page 305 ends

ATTACHMENTS 1 AND 2
Attachment 1 - FY 2023/24 Proposed Operating Link:
https://www.losgatosca.gov/2858/Proposed-FY-2023-24-Operating-Budget Attachment 2 - FY 2023/24 – 2027/28 Proposed Capital
Improvement Program Budget Link:
https://www.losgatosca.gov/2859/Proposed-2023-24-Capital-Budget

Page 306 ends

PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
ATTACHMENT 3

TOWN OF LOS GATOS
DATE: May 10, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager on behalf of the Finance Commission SUBJECT: Receive Recommendations from the Town Finance Commission per Measure A Regarding Fiscal Year (FY) 2023/24 Proposed Operating and Capital Budgets RECOMMENDATION:

Receive recommendations from the Town Finance Commission per Measure A regarding Fiscal Year (FY) 2023/24 Proposed Operating and Capital Budgets.

BACKGROUND:

On April 17, 2023, the Town Manager’s Proposed FY 2023/24 Operating and Capital Budgets were posted on the Town’s website for the public’s review and comment. The Proposed Budgets were published 21 business days before May 16, 2023 (Council’s public hearing date on the Budgets), in accordance with Measure A.

With the passage of Measure A, the Finance Commission has been tasked with several mandated duties as described in the provisions of the adopted Ordinance. Section 2.50.225. – Duties states that:
(a) The Finance Commission shall:
(2) Review the Town Manager's annual proposed budget prepared in accordance with section 2.30.295(6) of the Town Code. and provide written comments and recommendations to the Town Council.
(A) The Finance Commission's comments and recommendations shall include a recommendation about whether the Town Council should approve or disapprove the proposed budget. The Finance Commission may make a recommendation of

Page 307 ends

PAGE 2 OF 3
SUBJECT: Finance Commission FY 2023/24 Budget Recommendations DATE: May 10, 2023
BACKGROUND (continued):
approval of the budget conditional upon the Town Council's acceptance of one or more of the Finance Commission's recommendations.
(B) The Town Manager must provide a proposed budget to the Finance Commission at least twenty (20) business days before the first meeting at which the proposed budget is considered by the Town Council.

The Finance Commission established the following schedule to discuss and determine its recommendations on the Proposed Budgets and Measure G allocation (Agendas and Minutes available at: https://losgatos-ca.municodemeetings.com/):
 April 17, 2023 – Special Finance Commission meeting
 May 1, 2023 – Special Finance Commission meeting
 May 8, 2023 – Regular Finance Commission meeting
In addition, the meeting schedule provided ample opportunities for the public to engage in the process either through written comment, verbal comment through Zoom, or participating in person.

The discussion section of this report details the deliberations of the Finance Commission and its recommendations to the Town Council.

DISCUSSION:

Finance Commission Deliberations
Over the course of the Commission’s budget proceedings, the Commission received presentations on the Proposed Operating and Capital Budgets, evolution of forecasted budget deficits, allocated/unallocated American Rescue Plan Act (ARPA) Replacement Revenue, and employee vacancies. In addition, staff provided responses to Commission and public inquiries throughout the process. All questions and responses are posted on the Town’s website as Frequently Asked Questions (FAQs) at: https://www.losgatosca.gov/2858/Proposed-FY-2023- 24-Operating-Budget
The Commission’s deliberations coalesced around the following goals and observations:
 The Commission’s interest for continued enhancement of transparency in budget development, budget assumptions, and budget presentation.  The higher percentage increases in the primary expenditures of Salary and Benefits relative to revenues is constraining other investments.

Page 308 ends

PAGE 3 OF 3
SUBJECT: Finance Commission FY 2023/24 Budget Recommendations DATE: May 10, 2023
DISCUSSION (continued):
 The Forecast projects deficits throughout the forecast period.

Based on the aforementioned areas of emphasis, the Commission ultimately made four recommendations to the Town Council.

Motion by Chair Tinsley to instruct staff to add a vacancy rate of 4.6% to the budget in order to more realistically forecast expected personnel expenses. Seconded by Vice Chair Koen.

Motion passed 3-0 (Commissioners Howard and Reiners were absent).

Motion by Vice Chair Koen to make a recommendation to the Town Council to the adjust the Education Realignment Augmentation Fund (ERAF) revenue estimate for FY 2023/24 to $2.2 million from the budgeted amount of $1.5. Seconded by Commissioner Howard.

Motion passed 4-0 (Commissioner Reiners was absent).

Motion by Vice Chair Koen to make a recommendation to adjust the schedules C-9, C-10, C-14, C-26 to expand the salary benefits line to include salary, overtime, CalPERS Benefits, all other benefits and OPEB pay as you go benefits. Seconded by Chair Tinsley.

Motion passed 4-0 (Commissioner Reiners was absent).

Motion by Vice Chair Koen to make a recommendation to staff to revise the schedules on pages B-5 and B-6 to add a column showing the best estimate of funds to be spent within FY 2023/24 by project. Seconded by Commissioner Dell.

Motion passed 4-0 (Commissioner Reiners was absent).

CONCLUSION:

Per Measure A, this report provides written comments and recommendations to the Town Council regarding the Commission’s review of the Proposed FY 2023/24 Operating and Capital Budgets.

COORDINATION:

This staff report was coordinated with the Town Manager, Town Attorney, and Finance Commission Chair.

ENVIRONMENTAL ASSESSMENT:

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

Page 309 ends

ATTACHMENT 4

FORECAST ASSUMPTIONS

REVENUE BASELINE AND PROJECTION FACTORS
Type of
Revenue Base
Line Estimate
FY2023/24
Budget
FY 2024/25
Forecast
FY 2025/26
Forecast
FY 2026/27
Forecast
FY2027/28
Forecast
FY 2028/29
Forecast
Property
Tax/VLF
Backfill
SCC Assessor
Office January
2023 report.
3% 3% 3% 3% 3% 3%
North 40
Property
Sales
Additional
$187K $327K
Cumulative
$467K
Cumulative 3% 3% 3%
ERAF
SCC Assessor
Office March
2023 report
SCCAO
Recommends
70% of FY
2022/23
Anticipated
Proceeds
50% of
FY 2023/24
Anticipated
Proceeds
$770K
50% of
FY 2023/24
Anticipated
Proceeds
$770K
50% of
FY 2023/24
Anticipated
Proceeds
$770K
50% of
FY 2023/24
Anticipated
Proceeds
$770K
50% of
FY 2023/24
Anticipated
Proceeds
$770K
Sales Tax
MuniServices
March 2023
Most Likely
Estimates
MuniServices
March 2023
Most Likely
Estimates
MuniServices
March 2023
Most Likely
Estimates
MuniServices
March 2023
Most Likely
Estimates
MuniServices
March2023
Most Likely
Estimates
MuniServices
March 2023
Most Likely
Estimates
Sales Tax -
Measure G
MuniServices
March 2023
Most Likely
Estimates
MuniServices
March 2023
Most Likely
Estimates
MuniServices
March 2023
Most Likely
Estimates
MuniServices
March 2023
Most Likely
Estimates
MuniServices
March 2023
Most Likely
Estimates
MuniServices
March 2023
Most Likely
Estimates
Franchise Fee
(Not Including
Garbage
Franchise
Fees)
Current
baseline set
by FY 2022/23
Year End
Estimates
3% 3% 3% 3% 3%
Garbage
Franchise Fee
Partial
proceeds
from July
2023 – Feb
2024
$1.2M
50% of
FY 2022/23
anticipated
proceeds
$940K
50% of
FY 2022/23
anticipated
proceeds
$940K
50% of
FY 2022/23
anticipated
proceeds
$940K
50% of
FY 2022/23
anticipated
proceeds
$940K
50% of
FY 2022/23
anticipated
proceeds
$940K

Page 310 ends

ATTACHMENT 4

FORECAST ASSUMPTIONS

REVENUE BASELINE AND PROJECTION FACTORS
Type of
Revenue Base
Line Estimates
FY 2023/24
Budget
FY 2024/25
Forecast
FY 2025/26
Forecast
FY 2026/27
Forecast
FY2027/28
Forecast
FY 2028/29
Forecast
Transient
Occupancy Tax
Current baseline
set by FY
2022/23 Year
End Estimates
3% 3% 3% 3% 1% 1%
Business License
Tax
Current baseline
set by FY
2022/23 Year
End Estimates
2% 2% 2% 2% 2% 2%
License &
Permits
Current baseline
set by FY
2022/23 Year
End Estimates

4.4% 3% 3% 3% 3% 3%
Town Services
Current baseline
set by FY
2022/23 Year
End Estimates
3% 3% 0% 3% 3% 3%
Fine &
Forfeitures
Current baseline
set by FY
2022/23 Year
End Estimates
1% Varies Varies Varies Varies Varies
Interest Varies based
on portfolio 1% 1% 1% 1% 1%
Other Sources
Current baseline
set by FY
2022/23 Year
End Estimates
Varies Varies Varies Varies Varies Varies

Page 311 ends

ATTACHMENT 4

FORECAST ASSUMPTIONS

EXPENDITURE BASELINE AND PROJECTION FACTORS
Beginning in FY 2020/21, the Town is budgeting salaries at the actual salary plus a one-step increase. 70% of the workforce is already at top step or one step below top step. In the Five-Year Forecast, positions are forecasted at the actual rate of pay including salaries and benefits as of March 1, 2022 and rate is increasing in the actual anniversary date. The FY 2024/25 – FY 2028/29 Forecast includes 4% salary savings. All positions are fully budgeted in FY 2023/24 Proposed Budget.

Type of
Expenditure
FY2023/24
Budget
FY 2024/25
Forecast
FY 2025/26
Forecast
FY 2026/27
Forecast
FY2027/28
Forecast
FY 2028/29
Forecast
Salaries* 3% 2% 2% 2% 2% 2%
Benefit -
Medical** 7% 7% 7% 7% 7% 7%
Salary Savings 0% 4% 4% 4% 4% 4%
Operating
Expenditures*** Varies 3% 3% 3% 3% 3%
Grants & Awards 0% 0% 0% 0% 0% 0%
Utilities*** Varies 3% 3% 3% 3% 3%
Internal Service
Charges***
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Debt Service Debt Service Schedules
*Salary increases are based on actual step increases and approved Memoranda of Understanding with the bargaining units.
**Benefit increase estimates are provided by CalPERS/Public Employees’ Medical and Hospital Care Act (PEMHCA).
***Based on historical trends.

The Town’s required employer contribution rate estimates were developed using data provided by each plan’s most recent CalPERS actuarial valuation. The employer contribution rates reflect percentages of covered payroll. Rates shown for FY 2023/24 are actual rates as prescribed by CalPERS. Forecasted rates for FY 2024/25 and subsequent years are based on the most recent CalPERS actuarial valuation Reports as adjusted by the impact related to the FY 2021/22 CalPERS negative 7.5% investment return and forecasted payroll.

Page 312 ends

ATTACHMENT 4

FORECAST ASSUMPTIONS
Beginning in FY 2021/22, the estimates of employer contributions were credited with an anticipated reductions associated with the approximate $4.8 million additional discretionary payment (ADP) toward the 2016 unfunded amortization base paid off in October 2019 and the total of approximately $5.8 million in ADPs toward unfunded 2013 and 2015 amortization bases that were paid off in FY 2020/21.

Estimates were also informed by recent rate estimates developed by the Town’s actuary using the most recent actuarial valuation updated with current year projections of covered payrolls by plan type.

Type of
Expenditure
FY2023/24
Budget
FY 2024/25
Forecast
FY 2025/26
Forecast
FY 2026/27
Forecast
FY2027/28
Forecast
FY 2028/29
Forecast
Safety
POA

81.30% 87.00% 90.90% 90.80% 99.30% 108.40%
Safety
Management
POA

84.30% 90.00% 93.90% 93.80% 102.30% 111.40%
Safety

POA - PEPRA

14.50% 14.70% 15.00% 15.40% 15.90% 16.40%
Miscellaneous
TEA/Confidential/
Management

29.97% 29.20% 28.30% 29.80% 31.00% 32.50%
Miscellaneous
TEA/Confidential/
Management
PEPRA
Separate PEPRA
rate for
Miscellaneous has
not been
established yet by
CalPERS.

29.97% 29.20% 28.30% 29.80% 31.00% 32.50%
*Safety Classic Rate reflects 3% decrease in employer's contribution rate to reflect 3% contribution as negotiated with the Town's POA during the collective bargaining process effective FY 2019/20.

Page 313 ends

Corrections to the Proposed FY 2023/24 Operating and Capital Budgets 1 ATTACHMENT 5
The following corrections were made on the posted document on the Town’s website on 4/18/2023:

Proposed Operating & Capital Summary Budget FY 2023/24
Page A – 7 – Update 5- Year Forecast: FY 2023/24 Proposed Budget Column: Operating Expenditure $9.5 million to $8.9 million; and Capital Transfer Out to GFAR from $1 million to $1.6 million (total expenditure did not change)
Page C – 30 – Update chart to include the correct heather for General Fund balance as of June 30, 2023 and the Estimated General Fund Balance as of June 30, 2024.

The following correction was made on the posted document on the Town’s website on 4/21/2023:

Proposed Operating & Capital Summary Budget FY 2023/24
Page A – 16 – Update chart header from FY 2022/23 Authorized/Funded Town Staff Position to FY 2023/24 Authorized/Funded Town Staff Position.

The following correction was made on the posted document on the Town’s website on 4/25/2023.

Proposed Operating & Capital Summary Budget FY 2023/24
Page D – 76 – Update the OPEB Trust withdrawal amount from $1,609,200 to $1,608,226.

The following corrections were made on the posted document on the Town’s website on 4/26/2023.

Proposed Operating & Capital Summary Budget FY 2023/24
Page C – 26 – Update “The FY 2023/24 salaries and benefits increased by 2.6% when compared to the FY 2023/24 adjusted budget, and 8.8% compared to the FY 2022/23 estimates.” To “The FY 2023/24 salaries and benefits increased by 2.6% when compared to the FY 2022/23 adjusted budget, and 8.8% compared to the FY 2022/23 estimates.” Page C – 27 – Update Los Altos Population number from 8,400 to 31,190. Los Altos per capita numbers are updated in the table.

The following correction was made on the posted document on the Town’s website on 5/2/2023.

Page 314 ends

2 Proposed Operating & Capital Summary Budget FY 2023/24 Page C – 24 – Update remove extra word “million”. The sentence should read as follows: “FY 2023/24 General Fund revenues (excluding debt payments. restricted pension trust activity, OPEB Trust withdrawals, and fund transfers in) expected to decrease by $83K to $51.3 million from prior year estimated revenues.”
The following corrections were made on the posted document on the Town’s website on 5/11/2023.

Proposed Capital Improvement Program Budget FY 2023/24 – FY 2027/28 Page A – 2 – Correct misspelling from “rrelated” to “related”.

Page B – 10 – Correct categorization of Measure G Operation Revenue to Other Pass Through Revenue in GFAR.

Page B – 11 – Update table header to correctly display Fiscal Years and full description.

Proposed Operating & Capital Summary Budget FY 2023/24
Pages C – 29 and C – 32 – Correct misspelling from “Nonspendabe” to “Nonspendable”.

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ATTACHMENT 7

TOWN OF LOS GATOS DONATION OPPORTUNITIES
FY 2023/24 LIST OF TOWN NEEDS
To ensure that all donations and contributions are sought and accepted in an ethical manner, the Council established a Donation and Solicitation Policy. A list of Town needs was developed to identify goods, services, and other contributions to enhance Town services, programs, and events. The recommended needs for FY 2023/24

PUBLIC SAFETY
 Volunteer Program Materials and Equipment
 Specialized Public Safety Equipment and Supplies, including Support for Canine Program  Training Support for Public Safety Staff and Volunteers  Equipment, Supplies and Materials to support Police Operations  Community Outreach Program Supplies

LIBRARY SERVICES
 Children, Youth, and Adult Program Collections, Supplies and Services  Media items and other items for public circulation
 Funding to Support Technological Enhancements, including Digital Services  Equipment and Services to Support Historical Preservation Efforts  Resource support for Collection Development and Reference, Local History, and Library Policy

SENIOR SERVICES
 Home emergency kits geared towards the needs of seniors  Senior Service Committee seeks targeted solicitations for community engagement per the Town Solicitation and Donation Policy.

COMMUNITY EVENTS
 Supplies, Materials, and Services for Special Community and Volunteer Events and Activities  Funding for the realization of Public Art projects or Donations of Public Art subject to Public Art Selection Policy

TOWN PARKS AND FACILITIES
 Beautification Materials and Services for Town Parks, Open Space, and Infrastructure; Land for Parks and Open Space
 Contributions that Support Recreation or Expansion of Athletic Fields  Contributions that support multi-modal transportation.

SUSTAINABILITY
 Contributions to Help Minimize Impacts on Local, Regional, and Global Ecosystems through Conservation, Reduced Pollution, Increased Efficiency, and Protection of Wildlife, Vegetation, and other Ecosystems.

TECHNOLOGY
 Equipment, Software and Services to Enhance Communication with the Public and Organizational Productivity

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Enriching Lives – Investing in America
481 North Santa Cruz Avenue - Suite 250, Los Gatos, CA 95030 • [email protected] • HonorAVet.org March 21, 2023
The Honorable Mayor Maria Ristow and The Town of Los Gatos Town Council 110 E. Main Street
Los Gatos, CA 95030
Subject: Pandemic Funding Relief Request in Support of The Flame of Liberty Memorial Dear Council Members,
The Veterans Memorial & Support Foundation requests the Town’s financial support to eliminate the remaining Devcon Construction loan balance of $ 269,577.91 (as of Feb 28, 2023) for erecting the worldclass Flame of Liberty Memorial, which adorns the Town’s Civic Center lawn.

A grant of $ 269,577.91 from pandemic funding will position the Town of Los Gatos with the highest level of recognition [$250,000 and above] - the Circle of Liberty, upon the Wall of Gratitude. If required, the Veterans Memorial & Support Foundation can use the funds to pay off the construction loan prior to the deadline set by those who have granted the pandemic funds to the Town of Los Gatos.

The funding will allow the Veterans Foundation to turn the page on our next chapter and focus all efforts on raising funds solely for the purposes of: 1) maintaining The Flame of Liberty Memorial, (2) supporting our Yellow Ribbon Program endeavors to improve the lives of active service members, veterans and their families in our community, and (3) continuing to educate and model to our Los Gatos and greater community on the sacrifices borne by those who serve (in and out of uniform.) Example Yellow Ribbon Programs include the: a) “Silkies Hike,” targeted at reducing suicide through networking Veterans which, over the last two years, launched and ended at The Flame of Liberty Memorial, b) Weekly “Breakfasts with Vets” program aimed to deliver emotional healing run by therapist Dr. Clyde Horn, and c) Co-supporting “Stand Down,” a gathering of homeless veterans over the course of a weekend that provides to them healthcare physicals, dental checkups, hot showers, haircuts, new clothing, new sleeping bags, provisions, veterinarian services for their pets, VA / college counseling / job search resources, transportation service to and from the event, weekend meals and lodging, and more. Most importantly, the focus on our new chapter will enable us to positively impact the lives of individuals who have defended freedom, supported our country in natural disasters, and given us so much in return.

Your immediate approval of the proposal enclosed will allow us to commence work immediately towards our mission’s goal to focus on programmatic support that improves the lives of Veterans.

Please contact Veterans Memorial & Support Foundation President Major General Kent Hillhouse at 408-221-1512 (cell) or Board Member Ellen Manzo at (203) 561-8888 should you require further information.

Thank you in advance, for your consideration of this request.

Sincerely,
The Veterans Memorial & Support Foundation Board
ATTACHMENT 8

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SUBMITTED BY THE

VETERANS MEMORIAL & SUPPORT FOUNDATION

PROPOSAL TO THE TOWN OF LOS GATOS

PANDEMIC FUNDING

RELIEF REQUEST

IN SUPPORT OF THE

FLAME OF LIBERTY MEMORIAL

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1 Pandemic Funding Relief Request in Support of The Flame of Liberty Memorial Submitted to the Town of Los Gatos Town Council
by the
Veterans Memorial & Support Foundation Board
The Veterans Memorial & Support Foundation requests the Town’s financial support to eliminate the remaining Devcon Construction loan balance of $274,121 (as of Jan 31, 2023) for erecting the world-class Flame of Liberty Memorial, which adorns the Town’s Civic Center lawn.

Brief History – 69 Days, 6 Years, 6 Days, 6 Months
The Veterans Memorial & Support Foundation, established in October 2012, has been in place for a decade. The Foundation obtained 501(c)(3) IRS approval in 69 calendar days - weekends and holidays included - following submission of its application to the IRS. Most nonprofits experience 12-18 months for approval.

Over the six years that followed, the Foundation conducted two national arts challenges, made five presentations to the Town Council, presented to the Arts Commission, community organizations and stakeholders, surveyed the public on its interests, engaged media personnel, and worked with artists, architects, engineers, construction experts and landscape designers to establish building plans. The Town of Los Gatos public, the Town Council, the Town stakeholders, and the Foundation Board weighed in and chose the winning design which you now see as The Flame of Liberty. The Los Gatos Town Council’s final approval for The Flame of Liberty building plans arrived December-end 2018.

Links:

Town Council Approves Veterans Memorial Concept for Los Gatos 11/04/12 https://youtu.be/y8RMTBi9_zk
The Flame of Liberty Veterans Memorial by Artist Frank Kocian Morris https://youtu.be/E7O4bmg7OOc
Photos above – Groundbreaking for The Flame of Liberty Memorial Six days later, the Foundation conducted a public media groundbreaking on January 4, 2019. Less than six months later, the Foundation had constructed the memorial and conducted a premier dedication ceremony consisting of over 70 speakers and performers - top tier military personnel, public officers, family members of 9/11 heroes, prominent Veterans, emergency service officials, award winning entertainers, bands, military vehicles and community members, - who collectively delivered a message of the importance of supporting America’s active service members, veterans, and first responder personnel to the 1500+ audience members and media. If nothing else, that history should be testimony to the fact that once given the green light, the Veterans Foundation team knows how to execute.

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2 The Flame of Liberty Memorial delivers honor, respect, gratitude and healing to America’s Service Members, Veterans, First Responders, their Families and two local 9/11 Heroes – Todd Beamer & Mark Bingham.

Today, there stands an unparalleled Flame of Liberty Memorial upon the Civic Center Lawn designed by nationally acclaimed artist Frank Kocian Morris who has the recognition of being chosen by the U.S. Treasury as a Master Designer for the U.S. Mint, for which the Town of Los Gatos can be very proud. Work on the endeavor began in 2012. The Town Council approved the memorial building plans in December 2018, and on June 15, 2019, the Veterans Foundation unveiled The Flame of Liberty Memorial in a world-class dedication ceremony. The Flame of Liberty Memorial honors active service members, veterans, first responders, their families, and two heroes whose actions saved the U.S. Capitol building from destruction on 9/11. The Flame of Liberty Memorial creates for the Town of Los Gatos a destination that brings people together to the Town for events at an inspiring venue. Congresswoman Anna Eshoo phrased it well when she declared The Flame of Liberty Memorial “a sacred place.”
Links:

Deliver a Message of Honor and Gratitude
https://vimeo.com/390920373
Flame of Liberty Memorial Dedication Pgm Sneak Peak [Trailer] https://vimeo.com/346034483
June 15, 2019 Flame of Liberty Memorial Dedication – Full Program https://vimeo.com/363941922
Photos Below – Keynote speaker General H. R. McMaster U.S. Army (Ret.) and 25th United States National Security Advisor to the President addresses over 1500 interested community attendees at The Flame of Liberty Memorial Dedication Ceremony, June 15, 2019.

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3 Photo Above – Santa Clara County First Responders join with prominent military leaders and Los Gatos Town Council members to honor local 9/11 heroes, survivors, and victims at the 20th Anniversary event.

In its efforts to accomplish the mission of educating Americans on the sacrifices borne by those who serve, in addition to the premier memorial dedication on June 15, 2019, the Veterans Foundation in 2021 conducted a very moving 20th Anniversary Tribute to one of America’s most tragic days in recent history: 9/11, a 21st Anniversary of 9/11 Remembrance event in 2022, Middle and High School tours of the memorial in which our next generation learned about the history of defending freedom in America’s past and the tragic day of 9/11, and tours to various organizational groups in the area.

Links:

REMEMBER 9/11 – Tribute to Survivors, Victims and Heroes – Full Event https://www.youtube.com/watch?v=hqBOb1ML6Gg
Hillbrook School Visits The Flame of Liberty to Learn About 9/11 https://simplebooklet.com/L9e5AamW793iFArU8BElqO
When the Veterans Foundation launched this endeavor, we intended to build a memorial that delivered honor, respect, and gratitude to America’s active service members, veterans, and their families. Of great significance is that over our journey, we learned that The Flame of Liberty is much more than bricks and mortar because a memorial can be a catalyst for healing. So today, we add healing as an additional byproduct of the Flame of Liberty Memorial. Service members tell us they feel at home at the memorial. It offers a reflective space where they can call to mind their service experience and memorialize the buddies they lost during wartime. Veterans have spoken about how they have felt emotionally less burdened by the events they have harbored in their minds over decades when visiting memorials. And at paver dedication ceremonies in which members of the Foundation have joined families to embed an inscribed paver into our walk of heroes, we have observed veterans and families clutch hands, share stories of wartime that may have been privately held for decades, and weep together, as they collectively honor a loved one.

Links:

Catalyst for Healing – Honor Flight Commemorating WWII Veterans https://youtu.be/9J01YrMaC7Y
The Flame of Liberty Capital Campaign
The Foundation officially launched its Flame of Liberty Capital Campaign on the day of our groundbreaking in January 2019. Our goal was to raise $2.600,000 in support of the design and construction of The Flame of Liberty Memorial, a a memorial maintenance fund, delivery of educational programs to the community, and the creation of an endowment fund for yellow ribbon programs to improve the lives of active service members, veterans, and their families. To date, the Foundation, staffed 100% by volunteers, many of whom have been on board since inception, has raised $1,842,810.00 in donations and pledges. As of January 31, 2023, our “stretch” to meet our Flame of Liberty Campaign goal of $ 2,600,000.00 is $757,190.

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4 The Flame of Liberty Memorial
The Veterans Memorial & Support Foundation has,
through January 31, 2023, collected and spent
$1,339,053.98 on The Flame of Liberty Memorial. This
includes monthly payments towards a construction loan
that is in place with Devcon Construction which currently maintains a balance due as of Feb-end 2023 on the
construction loan of $ 269,577.91.

Devcon Obligation
COVID managed to put a huge monkey wrench in fundraising efforts for all nonprofits. Like every other nonprofit, we too felt the “squeeze.” Nevertheless, we continued to fundraise and pay suppliers $ 1,037,739.38 including every $16,000 monthly payment as expected on the Devcon construction loan in support of memorial expenses through the trying 2020, ’21 and ’22 pandemic years. And we did so while maintaining enough of a cash cushion to continue to operate. However, the Foundation has been financially limited to execute on other areas of our mission.

Pandemic Times
In 2022 we continued to dig deep into our sweat equity reserves and work in a lean and mean manner, something we have done all along. Here are some samples related to the 9/11 event of last September as example, that are evidentiary of our “lean and mean” modus operandi:
· 100% of the design work on the new 911 memorial was pro bono and the construction of the new 911 memorial was funded by the Veterans Foundation.
· 700 chair rentals, the delivery truck we borrowed to transport the chairs, and staging for our 911 event was pro bono. A charity organization assisted us in setting up and taking down chairs for the program. · The temporary staging of fire trucks and emergency vehicles were all pro bono. · Our marketing collateral was printed with discounted contracts. · Our keynote speaker at the 9/11 event who flew in from the Ukraine, is registered with speaker bureaus and typically commands thousands of dollars for his speech, (he also has sung the National Anthem on ESPN and national networks before over 500 sporting and other events) performed the National Anthem at our event and delivered his keynote for a speaker's cost of $0. other than his economy roundtrip travel.
· The event included over 50 participants including musical entertainers and Gary Scott Thomas, KBAY’s radio personality for over three decades who served as our event MC. Every one of our 50 or more performers and speakers took the stage on a pro bono basis.

Links:

American Challenge – Lessons From 9/11
https://vimeo.com/807131616
And despite the challenge COVID placed before us, we continued to deliver in support of our mission. In 2022, the Foundation:
· Co-hosted the “Silkies Hike” (named for the “silkies” running shorts most participants wear for the affair,) a hike that is geared to take a stab out of veteran suicide using humor and creating a forum for veterans to network.
· Continued execution of the “Gratitude Campaign” in honor of first responders, healthcare workers, military members and essential workers who supported America during the pandemic.
· Conducted weekly veteran meetings with Dr. Clyde Horn where an open forum discussion offers participants the opportunity to discuss issues of greatest concern to vets with Clyde, an expert therapist on veterans’ issues.

Photo Left – Veterans meet Veterans at the Silkies Hike in Los Gatos

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5 · Hosted a visit from Medal of Honor recipient Sammy L. Davis at The Flame of Liberty Memorial site. · Supported families who requested ceremonial dedications as their pavers of gratitude in honor of a loved one who served, were lowered into our Walk of Honor. · Unveiled the new California State Guard plaque boulder and the newly designed 9/11 memorial wall (both funded by the Veterans Foundation) at The Flame of Liberty Memorial, which were on our radar screen since inception.
· Participated as Guardians aboard Bay Area Honor Flights which flew local WWII, Korean War and Vietnam Veterans to Washington D.C. to visit memorials in their honor. Through this effort and that of our own Flame of Liberty Memorial, we have learned that visiting memorials can be the catalyst towards healing.
· Supported multiple remembrances throughout the Bay Area - e.g., Memorial Day celebrations, July 4th celebrations, the San Jose Veterans Day Parade, and Wreaths Across America and local events – Saratoga Classic Cool Car Show, Fiesta De Artes, Los Gatos Wine Walk, and more. · Managed the ongoing landscaping, maintenance, and holiday dress-up of our Flame of Liberty Memorial for holiday events over the course of the year (which also requires funding from the Veterans Foundation.)
· And conducted student educational tours in which we taught America’s next generation of leaders about the sacrifices borne by those who serve and the history of selfless acts of courage delivered by America’s service members in their defense and delivery of freedom to our country.

In short, it wasn’t easy.

Photos Below – Major General Kent Hillhouse US Army (Ret.) and Navy Reserve Captain Doug Beck share firsthand experiences surrounding the tragic events of 9/11 with students of the Hillbrook School.

Links:

Project Gratitude to Those Fighting Covid with Courage
https://vimeo.com/434842466
Bay Area Guard Unit Flyover Los Gatos to Honor Frontline COVID-19 Workers https://vimeo.com/422661895
Holiday Season at the Memorial Site
ttps://drive.google.com/file/d/1rNvEG1YtP5jQjrcrtNjdllC7d6DtEllH/view?usp=sharing Next Acts
In 2023, we intend to conduct fundraisers (July and in the fall,) that will embellish our cash reserves to support our mission.

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6 The Committee and Volunteers –
The Foundation Board in place consists of approximately 15 regular volunteers many of whom have been at the
Foundation table since inception. The Foundation’s
President is Major General Kent Hillhouse, US Army
(Ret.). We invite you to visit our Flipbook to learn more about some of our Board members.

Photo – Foundation President and Major General Kent
Hillhouse U.S. Army (Ret.) awards a deserving service member the Purple Heart.

Link:

The Veterans Memorial & Support Foundation – Meet Some of Our Members https://simplebooklet.com/veteransfoundationmembers
The Wall of Gratitude
A grant of $ 269,577.91 from pandemic funding will position the Town of Los Gatos with the highest level of recognition - the Circle of Liberty, upon the Wall of Gratitude. If required, the Veterans Memorial & Support Foundation can use the funds to pay off the construction loan prior to the deadline set by those who have granted the pandemic funds to the Town of Los Gatos.

In conclusion, the funding will allow the Veterans Foundation to turn the page on our next chapter and focus all efforts on raising funds solely for the purposes of supporting our Yellow Ribbon program endeavors, maintaining The Flame of Liberty Memorial, and continuing to educate our community on the sacrifices borne by those who serve. More importantly, it will enable us to improve the lives of individuals who have defended freedom, supported our country in natural disasters, and given us so much in return.

Thank you in advance, for your consideration of this request.

Photo Below – The Wall of Gratitude at The Flame of Liberty Memorial

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 05/16/2023
ITEM NO: 11

ADDENDUM
DATE: May 15, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Recommendations of the Finance Commission and Staff, and Provide Direction on the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year (FY) 2023/24 and on the Proposed Capital Improvement Program for FY 2023/24 – FY 2027/28; Including but Not Limited to:
a. Provide direction to Balance the FY 2023/24 Proposed Budget; b. Provide Direction on the Proposed Operating Budget;
c. Provide Direction on the Proposed Capital Budget; and d. Consider the FY 2023/24 List of Potential Donations Consistent with the Town’s Donation Policy
REMARKS:

Attachment 9 contains public comments received between 11:01 a.m., Thursday, May 11, and 11:01 a.m. Monday, May 15, 2023.

Attachments Provided to the Council Prior to the Distribution of the Staff Report:

1. FY 2023/24 Proposed Operating Budget
https://www.losgatosca.gov/2858/Proposed-FY-2023-24-Operating-Budget

2. FY 2023/24 – 2027/28 Proposed Capital Improvement Program Budget https://www.losgatosca.gov/2859/Proposed-2023-24-Capital-Budget Attachments Provided with the Staff Report:

3. FY 2023/24 Finance Commission Operating and Capital Budget Recommendations

4. Revenue and Expense Forecast Assumptions

5. List of updates related to corrections based on staff and Commissioners review and comments

6. Town of Los Gatos Donation Policy

7. Town of Los Gatos Donation Opportunities: FY 2023/24

8. Public Comment Received Before 11 a.m. on May 11, 2023

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PAGE 2 OF 2
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 15, 2023
Attachments Provided with this Addendum:

9. Public Comment Received Between 11:01 a.m., Thursday, May 11, and 11:01 a.m., Monday, May 15, 2023

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Capital Improvements
- Essential Emergency Communications Specifics/Details Value/Benefit/Justification Consequence of Deferral Priority
Group
FY24
Proposed
Budget
FY24
Gap
FY24
Requested
FY25
Requested
FY26
Requested
CERT Comms Upgrade:

GMRS/UHF repeater(s), antennas, & filters
replace 1 GMRS repeater
with 3 DMR hybrid repeaters
(one per year: FY24, 25, 26) Increase coverage to ALL of LG/MS Coverage in
Central area only A $10,000 $10,000 $10,000 $10,000
GMRS/UHF portable radios for
CERT, DART, Town Staff & Council
Distribute DMR handhelds to users
(batch per year in FY24, 25, 26)
Reliability, Functionality, Ease of Use
for ordinary users. No user license
required. Unreliable comms A $20,000 $20,000 $15,000 $15,000 EOC improvements:
radio room, radios, antennas, filters,& tower
Isolated Radio Room;
Greater noise free environment More effective EmComm
Radio operator "chatter" disrupts EOC
operation; errors increase A $31,000 $4,000 $35,000
CERT Trailer buildout
Radio/Antenna systems &
Battery, Generator
Portable, fully operational ICP
deployable to disabled & absent areas Limited functionality A $5,000 $5,000 $5,000 $5,000 ICPs:

Replace the 3 temporary ICPs with permanent
ones
FY24:
- Kennedy North (KN)
- Vista Del Monte (VDM)
- Rinconada
Improve access and reliability of weak
points in existing infrastructure
Half of Los Gatos is currently without
a permanent ICP which risks safety of
half the population. Compromises
Disaster Preparedness across town.

A $24,000 $24,000
ICPs:

Build new ICPs in the 3 neighborhoods currently
without one
Objective - 1 new ICP/year:
- Kennedy East (KE)
- Blossom Hill/Shannon (BH/Sh)
- Santa Rosa/Hicks (SR/H) Expand ICP infrastructure coverage A $10,000 $10,000 $10,000 $10,000 ICPs:

Resupply the 6 permanent ICPs
BW, LG/Almaden (LGA), N. Santa
Cruz (NSC), Almond Grove (AG),
Civic Center (CC), Vasona (V)
Refresh/replenish supplies in 6
permanent ICPs B $6,000 $6,000 $10,000 $10,000
Satellite (TCP/IP) access between the EOC, ICPs
& CERT Trailer
Digital messaging from Hand-held
personal devices
Improves messaging thruput (4-5X),
accuracy, & available (to everyone) Limited ability to communicate B $15,000 $15,000 Contingency Underestimates are "covered" Ensures benefits can be achieved Benefits compromised C $15,000 $15,000 ======== ======== ======== ======== ========
$61,000 $79,000 $140,000 $50,000 $50,000
Operating Budget Items:

FY24
Proposed
FY24
GAP
FY24
Requested
FY25
Requested
FY26
Requested
Outreach for new CERTs PD (JRose, Volunteer Coordinator) Provides means to increase the rate of
volunteer signups Understaffed CERT ICPs $25,000 $25,000 $20,000 $15,000

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 05/16/2023
ITEM NO: 11

DESK ITEM
DATE: May 16, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider the Recommendations of the Finance Commission and Staff, and Provide Direction on the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year (FY) 2023/24 and on the Proposed Capital Improvement Program for FY 2023/24 – FY 2027/28; Including but Not Limited to:
a. Provide direction to Balance the FY 2023/24 Proposed Budget; b. Provide Direction on the Proposed Operating Budget;
c. Provide Direction on the Proposed Capital Budget; and d. Consider the FY 2023/24 List of Potential Donations Consistent with the Town’s Donation Policy
REMARKS:

Attachment 10 contains public comments received between 11:01 a.m., Monday, May 15, and 11:00 a.m. Tuesday, May 16, 2023.

Attachments Provided to the Council Prior to the Distribution of the Staff Report:

1. FY 2023/24 Proposed Operating Budget
https://www.losgatosca.gov/2858/Proposed-FY-2023-24-Operating-Budget

2. FY 2023/24 – 2027/28 Proposed Capital Improvement Program Budget https://www.losgatosca.gov/2859/Proposed-2023-24-Capital-Budget Attachments Provided with the Staff Report:

3. FY 2023/24 Finance Commission Operating and Capital Budget Recommendations

4. Revenue and Expense Forecast Assumptions

5. List of updates related to corrections based on staff and Commissioners review and comments

6. Town of Los Gatos Donation Policy

7. Town of Los Gatos Donation Opportunities: FY 2023/24

8. Public Comment Received Before 11 a.m. on May 11, 2023

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PAGE 2 OF 2
SUBJECT: FY 2023/24 Proposed Operating and Capital Budgets DATE: May 16, 2023
Attachments Provided with the Addendum:

9. Public Comment Received Between 11:01 a.m., Thursday, May 11, and 11:00 a.m., Monday, May 15, 2023
Attachments Provided with this Desk Item:

10. Public Comment Received Between 11:01 a.m., Monday, May 15, and 11:00 a.m., Tuesday, May 16, 2023

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ATTACHMENT 10
From: jvannada
Sent: Tuesday, May 16, 2023 10:55 AM
To: Wendy Wood <[email protected]>; Town Manager <[email protected]>; Gitta Ungvari <[email protected]>
Cc: Maria Ristow <[email protected]>; Mary Badame <[email protected]>; Matthew Hudes <[email protected]>; Rob Moore <[email protected]>; Rob Rennie <[email protected]>
Subject: For Town Council Meeting 5-16-23, Item 11: History of Property Tax increase in Los Gatos 2013- 2022
[EXTERNAL SENDER]
As of May 1, 2023 from the SCC Assessor’s Office projects the Town’s secured real property tax roll for FY 24 increasing 6.6% from the prior FY 23 tax roll. The Town is projecting only 3% so I have put together some history of our property tax for the last 10 years for your consideration. Note that even counting the Covid years that our average increase is still 7%
Please see attached

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Source: 2022 ACFR (Pg 140) Schedule 8
Town of Los Gatos
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal
Year
Town
Property
Tax
Levied
and
Collected
Redevelopment
Property Tax
Levied and
Collected
Total
Property
Tax
Levied
and
Collected Pre-covid 2013-2022
2013 8,253,442 8,253,442
2014 9,120,626 - 9,120,626 11%
2015 9,787,519 - 9,787,519 7%
2016 10,388,424 - 10,388,424 6%
2017 11,345,588 - 11,345,588 9%
2018 12,060,228 - 12,060,228 6%
2019 12,924,592 - 12,924,592 7% 8%
2020 13,559,587 - 13,559,587 5% Covid
2021 13,864,271 - 13,864,271 2% Covid
2022 14,566,808 - 14,566,808 5% Covid 7%

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Los Gatos City CouncilMay 16, 2023

Los Gatos City Council
May 16, 2023