Los Gatos City Council
December 19, 2023

PAGE 4 OF 6
SUBJECT: Authorize Actions Related to an Agreement with Axon Enterprises Incorporated DATE: December 14, 2023
DISCUSSION (continued):

Other Santa Clara County law enforcement agencies employ Axon’s technology for collection, management, storage and sharing of Body-Worn Camera (BWC) video evidence. Because of this, the Santa Clara County District Attorney’s Office has invested resources into developing and maintaining the ability to receive and discover this evidence. Switching providers would cause the District Attorney and the Police Department to incur significant increased costs as well as lost productivity to replicate processes utilizing a different vendor’s technology and resources. A change of this nature would also negatively impact the ability for video management and evidence discovery for criminal justice proceedings.

In 2019, a new law took effect that required police agencies to produce video and audio recordings of critical incidents in response to a public records request. Critical incidents are events involving the discharge of a firearm at a person by a peace officer or a situation in which the use of force by a peace officer against a person resulted in death or great bodily injury.

The proposed Axon OSP 10+ agreement also includes Axon’s Redaction Assistant Program, a necessary redaction tool that will enable the Police Department to comply with mandated public records requests specific to California Penal Code 832.7.

Staff recommends approving a sole-source purchase agreement because the materials manufactured and distributed by Axon are unique and specialized, and there is no other source for this equipment with the integrated platforms and technology capability already in use by the Department. In addition, the proposed agreement replaces outdated Axon equipment every 3 years with Axon’s newest model and generational features. There are no other vendors capable of meeting the requirements of this service or product. Furthermore, Axon is not imposing any penalties for restructuring the existing contracts and entering into a new 5-year agreement for all services under its Officer Safety Plan 10+ and bundling of Tasers and bodyworn cameras.

Staff has asked Axon to add a provision stating that, in the event of litigation, venue will be in the County of Santa Clara and to remove the requirement that the Town notify Axon when Public Records Act requests are received. If Axon agrees to those changes, the agreement will be modified accordingly. In the interest of obtaining beneficial pricing, staff is presenting the agreement to the Town Council now pending resolution of those two requests and asking for authorization to sign the agreement with minor modifications.

CONCLUSION:

Authorize the Town Manager to execute a five-year agreement in substantially the form attached to this report with Axon Enterprises Incorporated for the purchase and maintenance of Axon Officer Safety Plan 10+ Body Worn Cameras (BWC), Tasers, and a digital evidence

PAGE 5 OF 6
SUBJECT: Authorize Actions Related to an Agreement with Axon Enterprises Incorporated DATE: December 14, 2023
CONCLUSION (continued):
management system in the amount of not to exceed $800,000. In addition, authorize an expenditure budget adjustment in the amount of $68,356 from the available General Fund Capital/Special Projects Reserve.

ALTERNATIVES:

Alternatively, the Town Council could direct staff to delay the replacement of equipment and early renegotiation of the Axon services agreement. Staff does not recommend this alternative as the current equipment is approaching the recommended service life expectancy, additional costs for nonincluded features under the current limited OSP 7 plan will be required, and Axon has provided notice that all service plan costs will significantly increase beginning January 2024.

FISCAL IMPACT:

Over the last five years, the total budgeted amount of the existing Axon OSP 7 BWC and Taser Agreements was increased to $398,405, as result of two amendments to the original Axon agreement. The chart below depicts actual expenses for the Axon OSP 7 agreements.

Chart#1
The existing agreements are set to expire in 2024, requiring renegotiation of a revised Axon OSP 10, OSP 10+, or OSP 10 Premium plan with an increase of 16% above the proposed Axon OSP 10+ agreement depicted in Chart #2 below. The total cost of the proposed Axon OSP 10+ Agreement is $780,612.55, which is approximately $156,000.00 annually.

PAYMENT AXON BWC TASERS ADD-ON COSTS TTL ANNUAL EXP
Year 1 $ 50,867 Trade-In Credit $ - $ 50,867
Year 2 $ 49,916 $ 28,383 $ 2,350 $ 80,650
Year 3 $ 49,916 $ 31,464 $ 5,694 $ 87,074
Year 4 $ 49,916 $ 31,464 $ 6,858 $ 88,238
Year 5 $ 49,916 $ 31,464 $ 6,858 $ 88,238
TOTAL $ 250,533 $ 122,775 $ 21,760 $ 395,068
EXISTING AGREEMENT - AXON OFFICER SAFETY PLAN (OSP 7)

PAGE 6 OF 6
SUBJECT: Authorize Actions Related to an Agreement with Axon Enterprises Incorporated DATE: December 14, 2023
FISCAL IMPACT (continued):

Chart #2
For the reasons stated in this report, staff recommends the authorization of a FY 23/24 Expenditure Budget Adjustment of $68,356 from the available General Fund Capital/Special Project Reserve. Ongoing annual payments summarized in the table above would be requested through the annual budget process.

ENVIRONMENTAL ASSESSMENT:

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

ATTACHMENTS:

1. Sole Manufacturer Letter

2. Axon OSP 10+ Proposed Quote for BWC, Tasers, and Digital Evidence Storage System with Exhibit A – Axon Officer Safety Plan Comparison Features

3. Axon Draft Agreement

PAYMENT AXON BWC TASERS ADD-ON COSTS TTL ANNUAL EXP
Year 1 Included Included Included $ 156,616
Year 2 Included Included Included $ 155,999
Year 3 Included Included Included $ 155,999
Year 4 Included Included Included $ 155,999
Year 5 Included Included Included $ 155,999
TOTAL Included Included Included $ 780,612
PROPOSED AGREEMENT - AXON OFFICER SAFETY PLAN (OSP 10+)

17800 N. 85th St., Scottsdale, Arizona 85255 * 480-991-0797 * Fax 480-991-0791 * www.axon.com To: United States state, local and municipal law enforcement agencies Re: Sole Manufacturer Letter for Axon Enterprise, Inc.’s Conducted Electrical Weapons, on-Officer Cameras, and Evidence.com Data Management Solutions
Axon Enterprise, Inc. (Axon), is the sole manufacturer for TASER brand energy weapons and Axon brand products. Axon is also the sole distributor of all Axon brand products in the USA and the sole distributor of all TASER brand products in the States of AR, CT, DE, FL, GA, HI, IA, IL, IN, KS, LA, MA, MD, ME, MN, MO, MS, NC, ND, NE, NH, NJ, NY, OK, OR, PA, RI, SC, SD, VA, VI, VT, WI, WV, and the District of Columbia. Axon is also the sole developer and offeror of the Evidence.com data management services.1 TASER Energy Weapon Descriptions
TASER 10 Energy Weapon
• Multi-shot energy weapon
• Detachable magazine holding 10 TASER 10 Cartridges
• 45-foot (13.7-meter) range
• High-efficiency flashlight
• Green LASER sight
• Central Information Display (CID): Displays mission critical data such as remaining battery energy, burst time, and cartridge status.
• Weapon logs
• TASER Weapons Dock connected to Axon Evidence (Evidence.com) services • Onboard self-diagnostic and system status monitoring and reporting • Real-time clock updated when the battery pack is plugged into the TASER Weapons Dock • Ambidextrous selector switch
• Can be configured by the agency to alert Axon camera systems • The trigger activates a single cycle (approximately five seconds). Holding the trigger down will continue the discharge beyond the standard cycle (unless configured by the agency to stop at five seconds). The energy weapon cycle can be stopped by placing the safety switch in the down (SAFE) position.
• Compatible with TASER 10 Cartridges only
TASER 7 Energy Weapon
• Multiple-shot energy weapon
• High-efficiency flashlight
• Close Quarter and Standoff cartridges
• Green LASER and dual red LASERs that adjust for cartridge angle • Arc switch enables drive-stun with or without a TASER 7 Cartridge installed • Central Information Display (CID): Displays mission critical data such as remaining battery energy, burst time, and cartridge status.
• Weapon logs
• TASER Weapons Dock connected to Axon Evidence services 1 Evidence.com is both a division of Axon and a data management product solution offered by Axon. Evidence.com is not a separate corporate entity.

ATTACHMENT 1
May 26, 2023

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 2 • Onboard self-diagnostic and system status monitoring and reporting • Real-time clock updated when the battery pack is plugged into the TASER Weapons Dock • Ambidextrous safety switch
• Can be configured by the agency to alert Axon camera systems • The trigger activates a single cycle (approximately five seconds). Holding the trigger down will continue the discharge beyond the standard cycle (unless configured by the agency to stop at five seconds). The energy weapon cycle can be stopped by placing the safety switch in the down (SAFE) position.
• Compatible with TASER 7 Cartridges only
TASER 7 CQ Energy Weapon
• Multiple-shot energy weapon for agencies that deploy energy weapons mostly at close quarters (CQ) • High-efficiency flashlight
• Close Quarter cartridges
• Arc switch enables drive-stun with or without a TASER 7 Cartridge installed • Central Information Display (CID): Displays mission critical data such as remaining battery energy, burst time, and cartridge status.
• Weapon logs
• TASER Weapons Dock connected to Axon Evidence services • Onboard self-diagnostic and system status monitoring and reporting • Real-time clock updated when the battery pack is plugged into the TASER Weapons Dock • Ambidextrous safety switch
• Can be configured by the agency to alert Axon camera systems • The trigger activates a single cycle (approximately five seconds). Holding the trigger down will continue the discharge beyond the standard cycle (unless configured by the agency to stop at five seconds). The energy weapon cycle can be stopped by placing the safety switch in the down (SAFE) position.
• Compatible with 12-degree TASER 7 Cartridges only
X2 Energy Weapon
• Multiple-shot energy weapon
• High efficiency flashlight
• Static dual LASERs (used for target acquisition)
• ARC switch enables drive-stun with or without a Smart Cartridge installed • Central Information Display (CID): Displays mission-critical data such as remaining battery energy, burst time, operating mode, and user menu to change settings and view data on a yellow-on-black display
• The Trilogy log system records information from a variety of sensors into three data logs: Event log, Pulse log, and Engineering log. Data can be downloaded using a universal serial bus (USB) data interface module connected to a personal computer (PC). Data may be transferred to Axon Evidence services.
• Real-time clock with back-up battery
• Onboard self-diagnostic and system status monitoring and reporting • Ambidextrous safety switch
• Capable of audio/video recording with optional TASER CAM HD recorder • The trigger activates a single cycle (approximately five seconds). Holding the trigger down will continue the discharge beyond the standard cycle (except when used with an APPM or TASER CAM HD AS). The energy weapon cycle can be stopped by placing the safety switch in the down (SAFE) position.
• Compatible with TASER Smart Cartridges only
X26P Energy Weapon
• High efficiency flashlight
• Red LASER (used for target acquisition)

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 3 • Central Information Display (CID): Displays data such as calculated remaining energy, burst time, and notifications
• The Trilogy log system records information from a variety of sensors into three data logs: Event log, Pulse log, and Engineering log. Data can be downloaded using a universal serial bus (USB) data interface module connected to a personal computer (PC). Data may be transferred to Axon Evidence services.
• Real-time clock with back-up battery
• Onboard self-diagnostic and system status monitoring and reporting • Ambidextrous safety switch
• Capable of audio/video recording with optional TASER CAM HD recorder • The trigger activates a single cycle (approximately five seconds). Holding the trigger down will continue the discharge beyond the standard cycle (except when used with an APPM or TASER CAM HD AS). The energy weapon cycle can be stopped by placing the safety switch in the down (SAFE) position.
• Compatible with TASER standard series cartridges
Axon Signal Performance Power Magazine (SPPM)
• Battery pack for the TASER X2 and X26P conducted electrical weapons • Shifting the safety switch from the down (SAFE) to the up (ARMED) positions sends a signal from the SPPM. Upon processing the signal, an Axon system equipped with Axon Signal technology transitions from the BUFFERING to EVENT mode. Axon Signal technology only works with Axon cameras.

Axon Signal Sidearm Sensor
• Can be installed on common duty holsters
• Drawing a service handgun from the holster sends a signal from the Axon Signal Sidearm sensor.

Upon processing the signal, an Axon system equipped with Axon Signal technology transitions from the BUFFERING to EVENT mode.

TASER Brand Energy Weapon Model Numbers

1. Energy Weapons:
• TASER 10 Models: 100390, 100391
• TASER 7 Models: 20008, 20009, 20010, and 20011
• TASER 7 CQ Models 20213, 20214
• TASER X2 Models: 22002 and 22003
• TASER X26P Models: 11002 and 11003

2. Optional Extended Warranties for Energy Weapons:
• TASER 7 – 4-year extended warranty, item number 20040 • X2 – 4-year extended warranty, item number 22014
• X26P – 2-year extended warranty, item number 11008
• X26P – 4-year extended warranty, item number 11004

3. TASER 10 Magazines
• TASER 10 live duty magazine (black), item number 100393 • TASER 10 Hook and Loop Training (HALT) magazine (blue), item number 100394 • TASER 10 live training magazine (purple), item number 100395 • TASER 10 inert training magazine (red), item number 100396

4. TASER 10 Cartridges (compatible with the TASER 10, required for this energy weapon to function in the probe deployment mode)
• TASER 10 live cartridge, item number 100399
• TASER 10 HALT cartridge, item number 10400
• TASER 10 inert cartridge, item number 100401

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 4 •

5. TASER 7 Cartridges (compatible with the TASER 7; required for this energy weapon to function in the probe deployment mode)
• Standoff cartridge, 3.5 degrees, Model 20012
• Close Quarter cartridge, 12 degrees, Model 20013

6. TASER standard cartridges (compatible with the X26P; required for this energy weapon to function in the probe deployment mode):
• 15-foot Model: 34200
• 21-foot Model: 44200
• 21-foot non-conductive Model: 44205
• 25-foot Model: 44203
• 35-foot Model: 44206

7. TASER Smart Cartridges (compatible with the X2; required for this energy weapon to function in the probe deployment mode):
• 15-foot Model: 22150
• 25-foot Model: 22151
• 25-foot inert simulation Model: 22155
• 25-foot non-conductive Model: 22157
• 35-foot Model: 22152
• Inert Smart Cartridge Model: 22153

8. Power Modules for TASER 7 and TASER 10 energy weapons:
• Tactical battery pack Model 22018
• Compact battery pack Model 22019
• Non-Rechargeable battery pack Model 22020
• Disconnect battery pack Model 20027 (currently only for the TASER 7 energy weapon)

9. TASER CAM HD recorder Model: 26810 (full HD video and audio) and TASER CAM HD with AS (automatic shut-down feature) Model: 26820. The TASER CAM HD is compatible with both the X26P and X2 energy weapons.
• TASER CAM HD replacement battery Model: 26764
• TASER CAM HD Download Kit Model: 26762
• TASER CAM HD optional 4-year extended warranty, item number 26763

10. TASER Weapons Dock, used with TASER 7 and TASER 10 battery packs:
• TASER Weapons Dock Core and Multi-bay Module: 74200
• TASER Weapons Dock Core and Single-bay Module: 74201
• TASER Weapons Dock Single Bay Dataport: 74208

11. Power Modules (Battery Packs) for X26P and X2 energy weapons:
• Performance Power Magazine (PPM) Model: 22010
• Tactical Performance Power Magazine (TPPM) Model: 22012 • Automatic Shut-Down Performance Power Magazine (APPM) Model: 22011 • eXtended Performance Power Magazine (XPPM) Model: 11010 • eXtended Automatic Shut-Down Performance Power Magazine (XAPPM) Model: 11015 • Axon Signal Performance Power Magazine (SPPM) Model: 70116

12. TASER Dataport Download Kits:
• Dataport Download Kit for the X2 and X26P Model: 22013

13. TASER Blast Door Repair Kit Model 44019 and TASER Blast Door Replenishment Kit Model 44023

14. TASER Simulation Suit II Model 44550

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 5 Axon Digital Evidence Solution Description
Axon Body 3 Video Camera (DVR)
• Improved video quality with reduced motion blur and better low-light performance • Multi-mic audio—four built-in microphones
• Wireless upload option
• Gunshot detection and alerts
• Streaming audio and video capability
• “Find my camera” feature
• Verbal transcription with Axon Records (coming soon)
• End-to-end encryption
• Twelve-hour battery
• Up to 120-second buffering period to record footage before pressing record button Axon Flex 2 Video Camera
• Video playback on mobile devices in the field via Bluetooth pairing • Retina Low Light capability sensitive to less than 0.1 lux • Audio tones to alert user of usage
• Low SD, high SD, low HD, and high HD resolution (customizable by the agency) • Up to 120-second buffering period to record footage before pressing record button • Multiple mounting options using magnetic attachment: head, collar, shoulder, helmet, ball cap, car dash, and Oakley sunglass mounts available
• 120-degree diagonal field of view camera lens. 102-degree horizontal field of view, and 55-degree vertical field of view
Axon Flex 2 Controller
• 12+ hours of battery operation per shift (even in recording mode) • LED lights to show current battery level and operating mode • Haptic notification available
• Tactical beveled button design for use in pocket
• Compatible with Axon Signal technology
Axon Body 2 Video Camera
• Video playback on mobile devices in the field via Bluetooth pairing • Retina Low Light capability sensitive to less than 1 lux • Audio tones and haptic (vibration) notification to alert user of usage • Audio mute during event option
• Wi-Fi capability
• High, medium, and low quality recording available (customizable by the agency) • Up to two-minute buffering period to record footage before pressing record button • Multiple mounting options using holster attachment: shirt, vest, belt, and dash mounts available • 12+ hours of battery operation per shift (even in recording mode) • LED lights to show current battery level and operating mode • 143-degree lens
• Includes Axon Signal technology
Axon Fleet 2 Camera
• High-definition video system with wide field of view, zoom, infrared for the back seat and wireless microphone integration
• Intuitive mobile data terminal app, Axon View XL, for quick tagging, uploads and more on the fly • Ability to efficiently categorize, play back and share all video alongside other digital files on Axon Evidence
• Multi-cam playback, for reviewing up to four videos, including body-worn and in-car footage, at the same time

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 6 • Best-in-class install times and quick remote troubleshooting • Fully integrated with Axon Evidence services and Axon devices • Automatic time synchronization with other Axon Fleet and Axon on-officer cameras allows for multicamera playback on Axon Evidence. • Immediate upload to Axon Evidence of critical event videos via 4G/LTE • Wireless alerts from the TASER energy weapon Signal Performance Power Magazine (SPPM). • Automatic transition from BUFFERING to EVENT mode in an emergency vehicle equipped with the Axon Signal Unit
Axon Fleet Camera
• In-car camera with the technological advantages of the Axon Body 2 camera • Flexible mount that enables pointing the camera in multiple directions • Automatic transition from buffering to event mode in an emergency vehicle equipped with the Axon Signal Unit
Axon Signal Unit (ASU)
• Communications device that can be installed in emergency vehicles. • With emergency vehicle light bar activation, or other activation triggers, the Axon Signal Unit sends a signal. Upon processing the signal, an Axon system equipped with Axon Signal technology transitions from the BUFFERING to EVENT mode.

Axon Interview Solution
• High-definition cameras and microphones for interview rooms • Covert or overt camera installations
• Touch-screen user interface
• Motion-based activation
• Up to 7-minute pre- and post-event buffering period
• Full hardware and software integration
• Upload to Axon Evidence services
• Interview room files can be managed under the same case umbrella as files from Axon on-officer cameras and Axon Fleet cameras; i.e., Axon video of an arrest and interview room video are managed as part of the same case in Axon Evidence
• Dual integration of on-officer camera and interview room camera with Axon Evidence digital evidence solution
Axon Signal Technology
• Sends a broadcast of status that compatible devices recognize when certain status changes are detected.
• Only compatible with TASER and Axon products
Axon Dock
• Automated docking station uploads to Axon Evidence services through Internet connection • No computer necessary for secure upload to Axon Evidence • Charges and uploads simultaneously
• The Axon Dock is tested and certified by TUV Rheinland to be in compliance with UL 60950-1: 2007 R10.14 and CAN/ CSA-C22.2 N0.60950-l-07+Al:2011+A2:2014 Information Technology Equipment safety standards.

Axon Evidence Data Management System
• Software as a Service (SaaS) delivery model that allows agencies to manage and share digital evidence without local storage infrastructure or software needed • SaaS model reduces security and administration by local IT staff: no local installation required • Automatic, timely security upgrades and enhancements deployed to application without the need for any local IT staff involvement
• Securely share digital evidence with other agencies or prosecutors without creating copies or

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 7 requiring the data to leave your agency’s domain of control • Controlled access to evidence based on pre-defined roles and permissions and pre-defined individuals
• Password authentication includes customizable security parameters: customizable password complexity, IP-based access restrictions, and multi-factor authentication support • Automated category-based evidence retention policies assists with efficient database management • Ability to recover deleted evidence within 7 days of deletion • Stores and supports all major digital file types: .mpeg, .doc, .pdf, .jpeg, etc. • Requires NO proprietary file formats
• Ability to upload files directly from the computer to Axon Evidence via an Internet browser • Data Security: Robust Transport Layer Security (TLS) implementation for data in transit and 256-bit AES encryption for data in storage
• Security Testing: Independent security firms perform in-depth security and penetration testing • Reliability: Fault- and disaster-tolerant infrastructure in at least four redundant data centers in both the East and West regions of the United States
• Chain-of-Custody: Audit logs automatically track all system and user activity. These logs cannot be edited or deleted, even by account administrators and IT staff • Protection: With no on-site application, critical evidence stored in Axon Evidence is protected from local malware that may penetrate agency infrastructure
• Stability: Axon Enterprise is a publicly traded company with stable finances and funding, reducing concerns of loss of application support or commercial viability • Application and data protected by a CJIS and ISO 27001 compliant information security program • Dedicated information security department that protects Axon Evidence and data with security monitoring, centralized event log analysis and correlation, advanced threat and intrusion protection, and incident response capabilities
• Redact videos easily within the system, create tags, markers and clips, search seven fields in addition to five category-based fields, create cases for multiple evidence files Axon Evidence for Prosecutors
• All the benefits of the standard Axon Evidence services • Ability to share information during the discovery process • Standard licenses available for free to prosecutors working with agencies already using Axon Evidence services
• Unlimited storage for data collected by Axon cameras and Axon Capture Axon Capture Application
• Free app for IOS and Android mobile devices
• Allows users to capture videos, audio recordings, and photos and upload these files to their Axon Evidence account from the field
• Allows adding metadata to these files, such as: Category, Title, Case ID, and GPS data Axon Commander Services
• On-premises data management platform
• Chain of custody reports with extensive audit trail
• Automated workflows, access control, storage, and retention • Compatible with multiple file formats
Axon View Application
• Free app for IOS and Android mobile devices
• Allows user to view the camera feed from a paired Axon Body, Axon Body 2, Axon Flex, or Axon Flex 2 camera in real-time
• Allows for playback of videos stored on a paired Axon Body Axon Body 2, Axon Flex, or Axon Flex 2 system
• Allows adding meta-data to videos, such as: Category, Title, Case ID, and GPS data

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 8 Axon Professional Services
• Dedicated implementation team
• Project management and deployment best practices aid
• Training and train-the-trainer sessions
• Integration services with other systems
Axon Customer Support
• Online and email-based support available 24/7
• Human phone-based support available Monday–Friday 7:00 AM–5:00 PM MST; support is located in Scottsdale, AZ, USA
• Library of webinars available 24/7
• Remote-location troubleshooting

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 9 Axon Brand Model Numbers

1. Axon Body 3 Camera Model: 73202

2. Axon Flex 2 Cameras:
• Axon Flex 2 Camera (online) Model: 11528
• Axon Flex 2 Camera (offline) Model: 11529

3. Axon Flex 2 Controller Model: 11532

4. Axon Flex 2 USB Sync Cable Model: 11534

5. Axon Flex 2 Coiled Cable, Straight to Right Angle, 48″ (1.2 m)

6. Axon Flex 2 Camera Mounts:
• Oakley Flak Jacket Kit Model: 11544
• Collar Mount Model: 11545
• Oakley Clip Model: 11554
• Epaulette Mount Model: 11546
• Ballcap Mount Model: 11547
• Ballistic Vest Mount Model: 11555
• Universal Helmet Mount Model: 11548

7. Axon Body 2 Camera Model: 74001

8. Axon Flex 2 Controller and Axon Body 2 Camera Mounts:
• Z-Bracket, Men’s, Axon RapidLock Model: 74018
• Z-Bracket, Women’s Axon RapidLock Model: 74019
• Magnet, Flexible, Axon RapidLock Model: 74020
• Magnet, Outerwear, Axon RapidLock Model: 74021
• Small Pocket, 4″ (10.1 cm), Axon RapidLock Model: 74022 • Large Pocket, 6″ (15.2 cm), Axon RapidLock Model: 74023 • MOLLE Mount, Single, Axon RapidLock Model: 11507
• MOLLE Mount, Double, Axon RapidLock Model: 11508
• Belt Clip Mount, Axon RapidLock Model: 11509

9. Axon Fleet 3 Camera
• High-definition Dual-View Camera with panoramic field of view, 12x zoom, and AI processing for automatic license plate reader (ALPR)
• High-definition Interior Camera with infrared illumination for back seat view in complete darkness • Wireless Mic and Charging Base for capturing audio when outside of vehicle • Fleet Hub with connectivity, global navigation satellite system (GNSS), secure solid-state storage, and Signal inputs
• Automatic transition from Buffering to Event mode with configurable Signals • Video Recall records last 24 hours of each camera in case camera not activated for an event • Intuitive mobile data terminal app, Axon Dashboard, for controlling system, reviewing video, quick tagging, and more
• Ability to efficiently categorize, play back and share all video and audio alongside other digital files on Axon Evidence
• Multi-cam playback, for reviewing up to four videos, including body-worn and in-car footage, at the

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 10 same time
• Fully integrated with Axon Evidence services and Axon devices • Automatic time synchronization with all Axon Fleet and other Axon on-officer cameras allows for multi-camera playback on Axon Evidence.
• Prioritized upload to Axon Evidence of critical event videos via 4G/LTE • Wireless alerts from the TASER energy weapon Signal Performance Power Magazine (SPPM) and Signal Side Arm (SSA).
• Best-in-class install times, wireless updates and quick remote troubleshooting • Optional Axon Aware live stream, alerts, and location updates for situational awareness • Optional Axon ALPR hotlist alerts, plate read retention, and investigative search

10. Axon Fleet 2 Camera
• High-definition video system with wide field of view, zoom, infrared for the back seat and wireless microphone integration
• Intuitive mobile data terminal app, Axon View XL, for quick tagging, uploads and more on the fly • Ability to efficiently categorize, play back and share all video alongside other digital files on Axon Evidence
• Multi-cam playback, for reviewing up to four videos, including body-worn and in-car footage, at the same time
• Best-in-class install times and quick remote troubleshooting • Fully integrated with Axon Evidence services and Axon devices • Automatic time synchronization with other Axon Fleet and Axon on-officer cameras allows for multicamera playback on Axon Evidence. • Immediate upload to Axon Evidence of critical event videos via 4G/LTE • Wireless alerts from the TASER energy weapon Signal Performance Power Magazine (SPPM). • Automatic transition from BUFFERING to EVENT mode in an emergency vehicle equipped with the Axon Signal Unit

11. Axon Fleet Camera
• Axon Fleet 2 Front Camera: 71079
• Axon Fleet 2 Front Camera Mount: 71080
• Axon Fleet 2 Rear Camera: 71081
• Axon Fleet 2 Rear Camera Controller: 71082
• Axon Fleet 2 Rear Camera Controller Mount: 71083
• Axon Fleet Battery System: 74024
• Axon Fleet Bluetooth Dongle: 74027
• Axon Fleet 3 Dual View Camera: 72000
• Axon Fleet 3 Interior Camera: 72037
• Axon Fleet Hub: 72010

12. Axon Signal Unit Model: 70112

13. Axon Dock Models:
• Axon Dock – Individual Bay and Core for Axon Flex 2 Model: 11536 • Axon Dock – 6-Bay and Core for Axon Flex 2 Model: 11537 • Individual Bay for Axon Flex 2 Model: 11538
• Core (compatible with all Individual Bays and 6-Bays) Model: 70027 • Wall Mount Bracket Assembly for Axon Dock: 70033
• Axon Dock – Individual Bay and Core for Axon Body 2 and Axon Fleet Model 74009 • Axon Dock – 6-Bay and Core for Axon Body 2 and Axon Fleet Model 74008 • Individual Bay for Axon Body 2 and Axon Fleet Model: 74011 • Axon Dock – 1-Bay for Axon Body 3 Model: 71104
• Axon Dock – 8-Bay for Axon Body 3 Model: 74210

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 11 TASER Product Packages

1. Officer Safety Plan: Includes an X2 or X26P energy weapon, Axon camera and Dock upgrade, and Evidence.com license and storage. See your Sales Representative for further details and Model numbers.

2. Officer Safety Plan 7: Includes a TASER 7 energy weapon, Axon Body 3 camera, Axon Dock, Axon Camera and Dock upgrade, Axon Evidence (Evidence.com) licenses and storage, Axon Respond, and Axon Records Core.

3. Officer Safety Plan 7 Plus: Includes a TASER 7 energy weapon, Axon Body 3 camera, Axon Evidence (Evidence.com) licenses and storage, Axon Records Core, Axon Respond +, Axon Auto-Tagging Services, Axon Performance, Axon Citizen for Communities, Axon Redaction Assistant, and Axon Signal Sidearm.

4. Officer Safety Plan 7 Plus Premium: Includes a TASER 7 energy weapon, Axon Body 3 camera, Axon Evidence (Evidence.com) licenses and storage, Axon Records Core, Axon Respond +, Axon AutoTagging Services, Axon Performance, Axon Citizen for Communities, Axon Redaction Assistant, Axon Signal Sidearm, Axon Auto-Transcribe, Axon VR Training, and unlimited first-party and unlimited thirdparty storage.

5. TASER 7 Basic: Pays for TASER 7 program in installments over 5 years including access to Axon Evidence services for energy weapon program management.

6. TASER 7 Certification: Pays for TASER 7 program in installments over 5 years including access to Axon Evidence for energy weapon program management, annual training cartridges, unlimited duty cartridges and online training content.

7. TASER Certification Add-On: Allows the agency to pay an annual fee to receive an annual allotment of training cartridges, unlimited duty cartridges and online training content.

8. TASER 7 Certification with Virtual Reality (VR): Pays for the TASER 7 program in installments over 5 years including access to Evidence.com for energy weapon program management, annual training cartridges, unlimited duty cartridges, online training content, and VR training.

9. TASER 60: Pays for X2 and X26P energy weapons and Spare Products in installments over 5 years.

10. Unlimited Cartridge Plan: Allows the agency to pay an annual fee to receive annual training cartridges, unlimited duty cartridges and unlimited batteries for the X2 and X26P.

11. TASER 60 Unlimited: Pays for X2 and X26P energy weapons and Spare Products in installments over 5 years and receive unlimited cartridges and batteries.

12. TASER 7 Close Quarters Dock Plan: Pays for TASER 7 Close Quarters Plan over a 5-year period in installments including access to Evidence.com for energy weapon program management, rechargeable batteries, annual cartridge shipments, unlimited duty cartridges, and access to online training.

13. Officer Safety Plan 10: Includes a TASER 10 energy weapon, the TASER 10 certification bundle, Axon body camera with Technology Assurance Plan (TAP),2 Axon Evidence, unlimited body camera and Axon Capture storage, Command Staff Pro license (1 per 100), Axon Signal Sidearm, Axon Standards, and Axon Respond.

14. Officer Safety Plan 10 Plus: Includes a TASER 10 energy weapon, the TASER 10 certification bundle, Axon body camera with Technology Assurance Plan (TAP),2 Axon Evidence (Evidence.com), unlimited body camera and Axon Capture storage, Command Staff Pro license (1 per 100), Axon Signal Sidearm, Axon Standards, Axon Respond, Axon Respond+, Axon Performance, Axon Community Request, Axon Investigate, Redaction Assistant, auto-tagging with implementation, channel services (3), third-party video storage (100 GB), third-party video playback, and Axon Records.

15. Officer Safety Plan 10 Premium: Includes a TASER 10 energy weapon, the TASER 10 certification 2 Axon Body 3 or Axon Body 4 & Axon Dock (for cameras) hardware purchased separately. Includes two Axon camera upgrades and one camera dock upgrade, which apply to 5-year contracts only.

Axon Enterprise, Inc. Sole Manufacturer Letter Version 28 Page 12 bundle, Axon body camera with Technology Assurance Plan (TAP),3 Axon Evidence (Evidence.com), unlimited body camera and Axon Capture storage, Command Staff Pro license (1 per 100), Axon Signal Sidearm, Axon Standards, Axon Respond, Axon Respond+, Axon Performance, Axon Community Request, Axon Investigate, Redaction Assistant, auto-tagging with implementation, channel services (unlimited), third-party video storage (100 GB), third-party video playback, Axon Records, Axon VR training, Axon Auto-Transcribe, and My90 by Axon.

16. TASER 10 Basic: Pays for the TASER 10 program in installments over 5 years including access to Axon Evidence services for energy weapon program management.

17. TASER 10 Certification: Pays for TASER 10 program in installments over 5 years including access to Evidence.com for energy weapon program management, annual training cartridges, unlimited duty cartridges and online training content.

18. TASER 10 Certification with Virtual Reality (VR): Pays for the TASER 10 program in installments over 5 years including access to Evidence.com for energy weapon program management, annual training cartridges, unlimited duty cartridges, online training content, and VR training.

19. Axon Core: Pays for the TASER 7 CQ, TASER Dock, weapon Axon Evidence license, training and duty cartridges, Axon Body 3 camera, Professional Axon Evidence license, unlimited storage, camera hardware upgrade every 2.5 years, Axon Respond, Axon Signal Sidearm, and auto tagging.

20. Axon Core+: Pays for the TASER 7 energy weapon, TASER Dock, weapon Axon Evidence license, training and duty cartridges, Axon Body 3 camera, Professional Axon Evidence license, unlimited storage, camera hardware upgrade every 2.5 years, Axon Respond, Axon Signal Sidearm, and auto tagging.

21. Corrections Officer Safety Plan: Includes a TASER 7 energy weapon, Axon Body 3 Camera, Axon Dock, Axon Camera and Dock Upgrade, Axon Evidence Licenses and unlimited Axon storage.

22. Corrections Post OSP: Includes one TASER 7 energy weapon for every two licenses, one Axon Body 3 Camera for every two licenses, Axon Dock, Axon Camera and Dock Upgrade, Axon Evidence Licenses and unlimited Axon storage for each license.

Please contact your local Axon sales representative or call us at 1-800-978-2737 with any questions.

Sincerely,
Josh Isner
Chief Operating Officer
Axon Enterprise, Inc.

Non-Axon trademarks are property of their respective owners. a, c, Axon, Axon Auto-Transcribe, Axon Body, Axon Capture, Axon Citizen, Axon Commander, Axon Evidence, Axon Fleet, Axon Flex, Axon Interview, Axon Records, Axon Respond, Axon Signal, Axon Standards, Axon View, My90, X2, X26P, TASER 7, TASER 10, TASER, and d are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved. © 2023 Axon Enterprise, Inc. 3 Axon Body 3 or Axon Body 4 & Axon Dock (for cameras) hardware purchased separately. Includes two Axon camera upgrades and one camera dock upgrade, which apply to 5-year contracts only.

Q-531712-45264.941TR
Issued: 12/04/2023
Quote Expiration: 12/29/2023
Estimated Contract Start Date: 03/15/2024
Account Number: 112743
Payment Terms: N30
Delivery Method:

SHIP TO BILL TO SALES REPRESENTATIVE PRIMARY CONTACT
Delivery-15900 LOS GATOS BLVD
300-328 LOS GATOS BLVD

LOS GATOS,
CA
95032-5454
USA
Los Gatos Police Dept. - CA
110 E Main St
Los Gatos
CA
95030-6943
USA
Email:

Thom Ruseva-Mahan
Phone: +1 4804148450
Email: [email protected]
Fax: +1 4809993359
Jose Reyes
Phone: (408) 354-6864
Email: [email protected]
Fax: (408) 354-0578
Quote Summary Discount Summary
Program Length 60 Months Average Savings Per Year $34,032.55 TOTAL COST $756,131.85
ESTIMATED TOTAL W/ TAX $780,612.55 TOTAL SAVINGS $170,162.76 Payment Summary
Date Subtotal Tax Total
Feb 2024 $23,501.95 $1,319.13 $24,821.08
Mar 2024 $127,724.42 $4,071.27 $131,795.69
Mar 2025 $151,226.37 $4,772.52 $155,998.89
Mar 2026 $151,226.37 $4,772.52 $155,998.89
Mar 2027 $151,226.37 $4,772.52 $155,998.89
Mar 2028 $151,226.37 $4,772.74 $155,999.11
Total $756,131.85 $24,480.70 $780,612.55
Axon Enterprise, Inc.
17800 N 85th St.

Scottsdale, Arizona 85255
United States
VAT: 86-0741227
Domestic: (800) 978-2737
International: +1.800.978.2737
ATTACHMENT 2

Quote Unbundled Price: $926,294.61
Quote List Price: $842,078.01
Quote Subtotal: $756,131.85
Pricing
All deliverables are detailed in Delivery Schedules section lower in proposal Item Description Qty Term Unbundled List Price Net Price Subtotal Tax Total Program
100553 TRANSFER CREDIT - SOFTWARE AND SERVICES 1 $1.00 ($4,270.79) ($4,270.79) $0.00 ($4,270.79) 101027 TRANSFER CREDIT - GOODS CEW 1 $1.00 $13,511.94 $13,511.94 $0.00 $13,511.94 100552 TRANSFER CREDIT - GOODS AXON 1 $1.00 $14,260.80 $14,260.80 $1,319.13 $15,579.93 BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 1 60 $70.49 $34.66 $0.00 $0.00 $0.00 $0.00 OSP10+ Officer Safety Plan 10 Plus 47 60 $286.36 $258.90 $239.40 $675,108.00 $21,759.68 $696,867.68 Unlimited7+ Unlimited 7+ Bundle 4 60 $213.19 $193.90 $193.90 $46,536.00 $1,014.77 $47,550.77 A la Carte Hardware
H00003 AB4 1-Bay Dock Bundle 1 60 $229.00 $0.00 $0.00 $0.00 $0.00 H00002 AB4 Multi Bay Dock Bundle 1 60 $1,638.90 $27.32 $1,638.90 $151.55 $1,790.45 H00001 AB4 Camera Bundle 3 60 $849.00 $14.15 $2,547.00 $235.57 $2,782.57 H00002 AB4 Multi Bay Dock Bundle 6 60 $1,638.90 $0.00 $0.00 $0.00 $0.00 H00001 AB4 Camera Bundle 48 60 $849.00 $0.00 $0.00 $0.00 $0.00 A la Carte Software
20248 TASER - EVIDENCE.COM LICENSE 41 3 $5.00 $0.00 $0.00 $0.00 $0.00 A la Carte Services
85149 CEW 2 DAY PRODUCT SPECIFIC INSTRUCTOR
COURSE 1 $6,800.00 $6,800.00 $6,800.00 $0.00 $6,800.00
A la Carte Warranties
80396 EXT WARRANTY, TASER 7 SIX BAY DOCK 1 3 $7.13 $0.00 $0.00 $0.00 $0.00 80395 EXT WARRANTY, TASER 7 HANDLE 40 3 $7.13 $0.00 $0.00 $0.00 $0.00 80374 EXT WARRANTY, TASER 7 BATTERY PACK 48 3 $0.48 $0.00 $0.00 $0.00 $0.00 Total $756,131.85 $24,480.70 $780,612.55

Page
3 Q-531712-45264.941TR
Delivery Schedule
Hardware
Bundle Item Description QTY Estimated Delivery Date
AB4 1-Bay Dock Bundle 100201 AXON BODY4-1 BAY DOCK1 02/15/2024 AB4 1-Bay Dock Bundle 71104 NORTH AMER POWER CORD FOR AB3& T7 1-BAY DOCK/DATAPORT1 02/15/2024 AB4 Camera Bundle 100147 AXON BODY4- NA- US FIRST RESPONDER- BLK- RAPIDLOCK 48 02/15/2024 AB4 Camera Bundle 100147 AXON BODY4- NA- US FIRST RESPONDER- BLK- RAPIDLOCK3 02/15/2024 AB4 Camera Bundle 100147 AXON BODY4- NA- US FIRST RESPONDER- BLK- RAPIDLOCK1 02/15/2024 AB4 Camera Bundle 100466 USB-C to USB-C CABLE FOR AB4 53 02/15/2024 AB4 Camera Bundle 100466 USB-C to USB-C CABLE FOR AB44 02/15/2024 AB4 Camera Bundle 74020 MAGNET MOUNT, FLEXIBLE, AXON RAPIDLOCK 53 02/15/2024 AB4 Camera Bundle 74020 MAGNET MOUNT, FLEXIBLE, AXON RAPIDLOCK4 02/15/2024 AB4 Multi Bay Dock Bundle 100206 AXON BODY4-8 BAY DOCK6 02/15/2024 AB4 Multi Bay Dock Bundle 100206 AXON BODY4-8 BAY DOCK1 02/15/2024 AB4 Multi Bay Dock Bundle 70033 WALL MOUNT BRACKET, ASSY, EVIDENCE.COM DOCK6 02/15/2024 AB4 Multi Bay Dock Bundle 70033 WALL MOUNT BRACKET, ASSY, EVIDENCE.COM DOCK1 02/15/2024 AB4 Multi Bay Dock Bundle 71019 NORTH AMER POWER CORD FOR AB3 8-BAY, AB2 1-BAY/ 6-BAY DOCK6 02/15/2024 AB4 Multi Bay Dock Bundle 71019 NORTH AMER POWER CORD FOR AB3 8-BAY, AB2 1-BAY/ 6-BAY DOCK1 02/15/2024 Officer Safety Plan 10 Plus 100681 SIGNAL SIDEARM, SENSOR ONLY 47 02/15/2024 Officer Safety Plan 10 Plus 71044 BATTERY, SIGNAL SIDEARM, CR2430 SINGLE PACK 94 02/15/2024 Unlimited 7+ Bundle 100681 SIGNAL SIDEARM, SENSOR ONLY4 02/15/2024 Unlimited 7+ Bundle 71044 BATTERY, SIGNAL SIDEARM, CR2430 SINGLE PACK8 02/15/2024 Officer Safety Plan 10 Plus 100390 TASER 10 HANDLE, YLW, CLASS 3R 47 05/15/2024 Officer Safety Plan 10 Plus 100390 TASER 10 HANDLE, YLW, CLASS 3R1 05/15/2024 Officer Safety Plan 10 Plus 100393 TASER 10 LIVE DUTY MAGAZINE BLACK 47 05/15/2024 Officer Safety Plan 10 Plus 100393 TASER 10 LIVE DUTY MAGAZINE BLACK1 05/15/2024 Officer Safety Plan 10 Plus 100394 TASER 10 HALT TRN MAGAZINE BLUE (HOOK-AND-LOOP-TRAINING)2 05/15/2024 Officer Safety Plan 10 Plus 100395 TASER 10 LIVE TRAINING MAGAZINE PURPLE2 05/15/2024 Officer Safety Plan 10 Plus 100396 TASER 10 INERT MAGAZINE RED2 05/15/2024 Officer Safety Plan 10 Plus 100399 TASER 10 LIVE CARTRIDGE 940 05/15/2024 Officer Safety Plan 10 Plus 100400 TASER 10 HALT CARTRIDGE 290 05/15/2024 Officer Safety Plan 10 Plus 100401 TASER 10 INERT CARTRIDGE 19 05/15/2024 Officer Safety Plan 10 Plus 100611 TASER 10 SAFARILAND HOLSTER, RH 47 05/15/2024 Officer Safety Plan 10 Plus 100623 ENHANCED HOOK-AND-LOOP TRAINING (HALT) SUIT (V2)1 05/15/2024 Officer Safety Plan 10 Plus 20018 TASER BATTERY PACK, TACTICAL 47 05/15/2024 Officer Safety Plan 10 Plus 20018 TASER BATTERY PACK, TACTICAL8 05/15/2024 Officer Safety Plan 10 Plus 20018 TASER BATTERY PACK, TACTICAL1 05/15/2024 Officer Safety Plan 10 Plus 70033 WALL MOUNT BRACKET, ASSY, EVIDENCE.COM DOCK1 05/15/2024 Officer Safety Plan 10 Plus 71019 NORTH AMER POWER CORD FOR AB3 8-BAY, AB2 1-BAY/ 6-BAY DOCK1 05/15/2024 Officer Safety Plan 10 Plus 74200 TASER 6-BAY DOCK AND CORE1 05/15/2024 Officer Safety Plan 10 Plus 80087 TASER TARGET, CONDUCTIVE, PROFESSIONAL (RUGGEDIZED)1 05/15/2024 Officer Safety Plan 10 Plus 80090 TARGET FRAME, PROFESSIONAL, 27.5 IN.X 75 IN., TASER71 05/15/2024 Officer Safety Plan 10 Plus 100399 TASER 10 LIVE CARTRIDGE 100 05/15/2025

Hardware
Bundle Item Description QTY Estimated Delivery Date
Officer Safety Plan 10 Plus 100400 TASER 10 HALT CARTRIDGE 280 05/15/2025 Officer Safety Plan 10 Plus 100399 TASER 10 LIVE CARTRIDGE 90 05/15/2026 Officer Safety Plan 10 Plus 100400 TASER 10 HALT CARTRIDGE 280 05/15/2026 Body Worn Camera Multi-Bay Dock TAP Bundle 73689 MULTI-BAY BWC DOCK 1ST REFRESH 1 08/15/2026 Officer Safety Plan 10 Plus 73309 AXON CAMERA REFRESH ONE 48 08/15/2026 Officer Safety Plan 10 Plus 73689 MULTI-BAY BWC DOCK 1ST REFRESH 6 08/15/2026 Unlimited 7+ Bundle 73309 AXON CAMERA REFRESH ONE 4 08/15/2026 Unlimited 7+ Bundle 73689 MULTI-BAY BWC DOCK 1ST REFRESH 1 08/15/2026 Officer Safety Plan 10 Plus 100399 TASER 10 LIVE CARTRIDGE 100 05/15/2027 Officer Safety Plan 10 Plus 100400 TASER 10 HALT CARTRIDGE 280 05/15/2027 Body Worn Camera Multi-Bay Dock TAP Bundle 73688 MULTI-BAY BWC DOCK 2ND REFRESH 1 02/15/2028 Officer Safety Plan 10 Plus 100399 TASER 10 LIVE CARTRIDGE 90 05/15/2028 Officer Safety Plan 10 Plus 100400 TASER 10 HALT CARTRIDGE 280 05/15/2028 Officer Safety Plan 10 Plus 73310 AXON CAMERA REFRESH TWO 48 02/15/2029 Officer Safety Plan 10 Plus 73688 MULTI-BAY BWC DOCK 2ND REFRESH 6 02/15/2029 Unlimited 7+ Bundle 73310 AXON CAMERA REFRESH TWO 4 02/15/2029 Unlimited 7+ Bundle 73688 MULTI-BAY BWC DOCK 2ND REFRESH 1 02/15/2029 Software
Bundle Item Description QTY Estimated Start Date Estimated End Date Officer Safety Plan 10 Plus 73478 REDACTION ASSISTANT USER LICENSE 47 03/15/2024 03/14/2029 Officer Safety Plan 10 Plus 73618 AXON COMMUNITY REQUEST+ LICENSE 47 03/15/2024 03/14/2029 Officer Safety Plan 10 Plus 73638 STANDARDS ACCESS LICENSE 47 03/15/2024 03/14/2029 Officer Safety Plan 10 Plus 73680 RESPOND DEVICE PLUS LICENSE 47 03/15/2024 03/14/2029 Officer Safety Plan 10 Plus 73682 AUTO TAGGING LICENSE 47 03/15/2024 03/14/2029 Officer Safety Plan 10 Plus 73683 10 GB EVIDENCE.COM A-LA-CART STORAGE 470 03/15/2024 03/14/2029 Officer Safety Plan 10 Plus 73686 EVIDENCE.COM UNLIMITED AXON DEVICE STORAGE 47 03/15/2024 03/14/2029 Officer Safety Plan 10 Plus 73739 PERFORMANCE LICENSE 47 03/15/2024 03/14/2029 Officer Safety Plan 10 Plus 73746 PROFESSIONAL EVIDENCE.COM LICENSE 47 03/15/2024 03/14/2029 Unlimited 7+ Bundle 73478 REDACTION ASSISTANT USER LICENSE 4 03/15/2024 03/14/2029 Unlimited 7+ Bundle 73618 AXON COMMUNITY REQUEST+ LICENSE 4 03/15/2024 03/14/2029 Unlimited 7+ Bundle 73638 STANDARDS ACCESS LICENSE 4 03/15/2024 03/14/2029 Unlimited 7+ Bundle 73680 RESPOND DEVICE PLUS LICENSE 4 03/15/2024 03/14/2029 Unlimited 7+ Bundle 73682 AUTO TAGGING LICENSE 4 03/15/2024 03/14/2029 Unlimited 7+ Bundle 73683 10 GB EVIDENCE.COM A-LA-CART STORAGE 40 03/15/2024 03/14/2029 Unlimited 7+ Bundle 73686 EVIDENCE.COM UNLIMITED AXON DEVICE STORAGE 4 03/15/2024 03/14/2029 Unlimited 7+ Bundle 73739 PERFORMANCE LICENSE 4 03/15/2024 03/14/2029 Unlimited 7+ Bundle 73746 PROFESSIONAL EVIDENCE.COM LICENSE 4 03/15/2024 03/14/2029 A la Carte 20248 TASER - EVIDENCE.COM LICENSE 41 03/15/2024 06/14/2024 Officer Safety Plan 10 Plus 20248 TASER - EVIDENCE.COM LICENSE 47 06/15/2024 03/14/2029 Officer Safety Plan 10 Plus 20248 TASER - EVIDENCE.COM LICENSE 1 06/15/2024 03/14/2029 Services
Bundle Item Description QTY
Officer Safety Plan 10 Plus 100751 TASER 10 DUTY CARTRIDGE REPLACEMENT ACCESS PROGRAM 47

Services
Bundle Item Description QTY
Officer Safety Plan 10 Plus 11642 THIRD-PARTY VIDEO SUPPORT LICENSE 47 Unlimited 7+ Bundle 11642 THIRD-PARTY VIDEO SUPPORT LICENSE 4 A la Carte 85149 CEW 2 DAY PRODUCT SPECIFIC INSTRUCTOR COURSE 1 Warranties
Bundle Item Description QTY Estimated Start Date Estimated End Date A la Carte 80374 EXT WARRANTY, TASER 7 BATTERY PACK 48 03/15/2024 06/14/2024 A la Carte 80395 EXT WARRANTY, TASER 7 HANDLE 40 03/15/2024 06/14/2024 A la Carte 80396 EXT WARRANTY, TASER 7 SIX BAY DOCK 1 03/15/2024 06/14/2024 Body Worn Camera Multi-Bay Dock TAP Bundle 80465 EXT WARRANTY, MULTI-BAY DOCK (TAP) 1 02/15/2025 03/14/2029 Officer Safety Plan 10 Plus 80464 EXT WARRANTY, CAMERA (TAP) 47 02/15/2025 03/14/2029 Officer Safety Plan 10 Plus 80464 EXT WARRANTY, CAMERA (TAP) 1 02/15/2025 03/14/2029 Officer Safety Plan 10 Plus 80465 EXT WARRANTY, MULTI-BAY DOCK (TAP) 6 02/15/2025 03/14/2029 Unlimited 7+ Bundle 80464 EXT WARRANTY, CAMERA (TAP) 4 02/15/2025 03/14/2029 Unlimited 7+ Bundle 80465 EXT WARRANTY, MULTI-BAY DOCK (TAP) 1 02/15/2025 03/14/2029 Officer Safety Plan 10 Plus 100704 EXT WARRANTY, TASER 10 HANDLE 47 05/15/2025 03/14/2029 Officer Safety Plan 10 Plus 100704 EXT WARRANTY, TASER 10 HANDLE 1 05/15/2025 03/14/2029 Officer Safety Plan 10 Plus 80374 EXT WARRANTY, TASER 7 BATTERY PACK 47 05/15/2025 03/14/2029 Officer Safety Plan 10 Plus 80374 EXT WARRANTY, TASER 7 BATTERY PACK 1 05/15/2025 03/14/2029 Officer Safety Plan 10 Plus 80374 EXT WARRANTY, TASER 7 BATTERY PACK 8 05/15/2025 03/14/2029 Officer Safety Plan 10 Plus 80396 EXT WARRANTY, TASER 7 SIX BAY DOCK 1 05/15/2025 03/14/2029

Payment Details
Feb 2024
Invoice Plan Item Description Qty Subtotal Tax Total
Invoice Upon Fulfillment 100552 TRANSFER CREDIT - GOODS AXON 1 $14,260.80 $1,319.13 $15,579.93 Invoice Upon Fulfillment 100553 TRANSFER CREDIT - SOFTWARE AND SERVICES 1 ($4,270.79) $0.00 ($4,270.79) Invoice Upon Fulfillment 101027 TRANSFER CREDIT - GOODS CEW 1 $13,511.94 $0.00 $13,511.94 Invoice Upon Fulfillment H00003 AB4 1-Bay Dock Bundle 1 $0.00 $0.00 $0.00 Total $23,501.95 $1,319.13 $24,821.08
Mar 2024
Invoice Plan Item Description Qty Subtotal Tax Total
Upfront HW + PSO 85149 CEW 2 DAY PRODUCT SPECIFIC INSTRUCTOR COURSE 1 $6,800.00 $0.00 $6,800.00 Upfront HW + PSO H00001 AB4 Camera Bundle 3 $2,547.00 $235.57 $2,782.57 Upfront HW + PSO H00001 AB4 Camera Bundle 48 $0.00 $0.00 $0.00 Upfront HW + PSO H00002 AB4 Multi Bay Dock Bundle 1 $1,638.90 $151.55 $1,790.45 Upfront HW + PSO H00002 AB4 Multi Bay Dock Bundle 6 $0.00 $0.00 $0.00 Year 1 20248 TASER - EVIDENCE.COM LICENSE 41 $0.00 $0.00 $0.00 Year 1 80374 EXT WARRANTY, TASER 7 BATTERY PACK 48 $0.00 $0.00 $0.00 Year 1 80395 EXT WARRANTY, TASER 7 HANDLE 40 $0.00 $0.00 $0.00 Year 1 80396 EXT WARRANTY, TASER 7 SIX BAY DOCK 1 $0.00 $0.00 $0.00 Year 1 OSP10+ Officer Safety Plan 10 Plus 47 $109,210.50 $3,520.01 $112,730.51 Year 1 Unlimited7+ Unlimited 7+ Bundle 4 $7,528.02 $164.14 $7,692.16 Invoice Upon Fulfillment BWCamMBDTAP Body Worn Camera Multi-Bay Dock TAP Bundle 1 $0.00 $0.00 $0.00 Invoice Upon Fulfillment OSP10+ Officer Safety Plan 10 Plus 47 $0.00 $0.00 $0.00 Total $127,724.42 $4,071.27 $131,795.69
Mar 2025
Invoice Plan Item Description Qty Subtotal Tax Total
Year 2 20248 TASER - EVIDENCE.COM LICENSE 41 $0.00 $0.00 $0.00 Year 2 80374 EXT WARRANTY, TASER 7 BATTERY PACK 48 $0.00 $0.00 $0.00 Year 2 80395 EXT WARRANTY, TASER 7 HANDLE 40 $0.00 $0.00 $0.00 Year 2 80396 EXT WARRANTY, TASER 7 SIX BAY DOCK 1 $0.00 $0.00 $0.00 Year 2 OSP10+ Officer Safety Plan 10 Plus 47 $141,474.39 $4,559.88 $146,034.27 Year 2 Unlimited7+ Unlimited 7+ Bundle 4 $9,751.98 $212.64 $9,964.62 Total $151,226.37 $4,772.52 $155,998.89
Mar 2026
Invoice Plan Item Description Qty Subtotal Tax Total
Year 3 20248 TASER - EVIDENCE.COM LICENSE 41 $0.00 $0.00 $0.00 Year 3 80374 EXT WARRANTY, TASER 7 BATTERY PACK 48 $0.00 $0.00 $0.00 Year 3 80395 EXT WARRANTY, TASER 7 HANDLE 40 $0.00 $0.00 $0.00 Year 3 80396 EXT WARRANTY, TASER 7 SIX BAY DOCK 1 $0.00 $0.00 $0.00 Year 3 OSP10+ Officer Safety Plan 10 Plus 47 $141,474.39 $4,559.88 $146,034.27 Year 3 Unlimited7+ Unlimited 7+ Bundle 4 $9,751.98 $212.64 $9,964.62

Mar 2026
Invoice Plan Item Description Qty Subtotal Tax Total
Total $151,226.37 $4,772.52 $155,998.89
Mar 2027
Invoice Plan Item Description Qty Subtotal Tax Total
Year 4 20248 TASER - EVIDENCE.COM LICENSE 41 $0.00 $0.00 $0.00 Year 4 80374 EXT WARRANTY, TASER 7 BATTERY PACK 48 $0.00 $0.00 $0.00 Year 4 80395 EXT WARRANTY, TASER 7 HANDLE 40 $0.00 $0.00 $0.00 Year 4 80396 EXT WARRANTY, TASER 7 SIX BAY DOCK 1 $0.00 $0.00 $0.00 Year 4 OSP10+ Officer Safety Plan 10 Plus 47 $141,474.39 $4,559.88 $146,034.27 Year 4 Unlimited7+ Unlimited 7+ Bundle 4 $9,751.98 $212.64 $9,964.62 Total $151,226.37 $4,772.52 $155,998.89
Mar 2028
Invoice Plan Item Description Qty Subtotal Tax Total
Year 5 20248 TASER - EVIDENCE.COM LICENSE 41 $0.00 $0.00 $0.00 Year 5 80374 EXT WARRANTY, TASER 7 BATTERY PACK 48 $0.00 $0.00 $0.00 Year 5 80395 EXT WARRANTY, TASER 7 HANDLE 40 $0.00 $0.00 $0.00 Year 5 80396 EXT WARRANTY, TASER 7 SIX BAY DOCK 1 $0.00 $0.00 $0.00 Year 5 OSP10+ Officer Safety Plan 10 Plus 47 $141,474.39 $4,560.03 $146,034.42 Year 5 Unlimited7+ Unlimited 7+ Bundle 4 $9,751.98 $212.71 $9,964.69 Total $151,226.37 $4,772.74 $155,999.11

Tax is estimated based on rates applicable at date of quote and subject to change at time of invoicing. If a tax exemption certificate should be applied, please submit prior to invoicing.

Standard Terms and Conditions
Axon Enterprise Inc. Sales Terms and Conditions
Axon Master Services and Purchasing Agreement:

This Quote is limited to and conditional upon your acceptance of the provisions set forth herein and Axon’s Master Services and Purchasing Agreement (posted at www.axon.com/legal/sales-terms-and-conditions), as well as the attached Statement of Work (SOW) for Axon Fleet and/or Axon Interview Room purchase, if applicable. In the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern to the extent it includes the products and services being purchased and does not conflict with the Axon Customer Experience Improvement Program Appendix as described below.

ACEIP:

The Axon Customer Experience Improvement Program Appendix, which includes the sharing of de-identified segments of Agency Content with Axon to develop new products and improve your product experience (posted at www.axon.com/legal/sales-terms-and-conditions), is incorporated herein by reference. By signing below, you agree to the terms of the Axon Customer Experience Improvement Program.

Acceptance of Terms:

Any purchase order issued in response to this Quote is subject solely to the above referenced terms and conditions. By signing below, you represent that you are lawfully able to enter into contracts. If you are signing on behalf of an entity (including but not limited to the company, municipality, or government agency for whom you work), you represent to Axon that you have legal authority to bind that entity. If you do not have this authority, please do not sign this Quote.

Exceptions to Standard Terms and Conditions
Agency has existing contract originated via Quote: Q-229977 Agency has existing contract originated via Quotes: Q-244606; Q-272854 Agency is terminating those contracts effective 03/15/2024. Any change in this date will result in modification of the program value which may result in additional fees or credits due to or from Axon.

The parties agree that Axon is applying a Net Transfer Debit of $23,501.95 to the quote for delivered but unpaid items. \s1\ \d1\
Signature Date Signed
12/4/2023

The Officer Safety Plan helps agencies make the most of their connected, mission-critical technologies.

Bundle our industry-leading devices with our powerful software and realize incredible savings for your agency.

OFFICER SAFETY PLAN
Comparing your options
OSP 10 OSP 10+ OSP 10 PREMIUM
TASER Energy Weapon TASER 10 TASER 10 TASER 10
Axon Body Camera (BWC) with TAP1
Axon Evidence
✓ ✓ ✓
Unlimited BWC + Axon Capture Storage ✓ ✓ ✓
Command Staff Pro License (1 per 100) ✓ ✓ ✓
TASER 10 Certification Bundle ✓ ✓ ✓
Axon Signal Sidearm2 ✓ ✓ ✓
Axon Standards3 ✓ ✓ ✓
Axon Respond ✓ ✓ ✓
Axon Respond+ ✓ ✓
Axon Performance ✓ ✓
Axon Community Request ✓ ✓
Axon Investigate ✓ ✓
Redaction Assistant ✓ ✓
Auto-Tagging with Implementation ✓ ✓
Channel Services 3 3
Third-Party Storage 100 GB Unlimited
Third-Party Video Playback ✓ ✓
Axon Records3 ✓ ✓
Axon Virtual Reality Training ✓
Axon Auto-Transcribe Unlimited
My90 by Axon ✓
1 Technology Assurance Plan for warranties and refreshes. 1 Axon Body 3 or Axon Body 4 & Axon Dock (for cameras) hardware purchased separately. Includes two Axon camera upgrades and one camera dock upgrade, which apply to 5-year contracts only.
2 Additional configuration may be needed to ensure Signal compatibility, and not all holster arrangements may be compatible. Reach out to your Axon representative to find out more and for assistance.
3 License subscription only. Does not include service/integration costs. Available for agencies with 15+ sworn officers.

Quantities may differ between plans. Consult your sales representative for exact quantities of plan features.

Prices as noted herein are subject to an annual increase of 4% beginning on the second anniversary of the applicable sales agreement, as further described in such agreement.
, AXON, Axon, Axon Body, Axon Community Request, Axon Evidence, Axon Investigate, My90, Axon Performance, Axon Records, Axon Respond, Axon Signal, Axon Standards, Axon VR, Axon Evidence, Redaction Assistant, Axon Auto-Transcribe, TASER, and TASER 10 are trademarks of Axon Enterprise, Inc., some of which are registered in the US and other countries. For more information, visit www.axon.com/legal. All rights reserved. © 2023 Axon Enterprise, Inc. ✓ ✓ ✓

EXHIBIT A

Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 19.2
Release Date: 11/29/2023 Page 1 of 41
This Master Services and Purchasing Agreement ("Agreement") is between Axon Enterprise, Inc. ("Axon"), and the agency listed below or, if no agency is listed below, the agency on the Quote attached hereto ("Agency"). This Agreement is effective as of the later of the (a) last signature date on this Agreement or (b) signature date on the Quote ("Effective Date"). Axon and Agency are each a "Party" and collectively "Parties". This Agreement governs Agency’s purchase and use of the Axon Devices and Services detailed in the Quote Appendix ("Quote"). It is the intent of the Parties that this Agreement will govern all subsequent purchases by Agency for the same Axon Devices and Services in the Quote, and all such subsequent quotes accepted by Agency shall be also incorporated into this Agreement by reference as a Quote. The Parties agree as follows:

1. Definitions.

1.1. "Axon Cloud Services" means Axon’s web services for Axon Evidence, Axon Records, Axon Dispatch, and interactions between Axon Evidence and Axon Devices or Axon client software. Axon Cloud Service excludes third-party applications, hardware warranties, and my.evidence.com.

1.2. "Axon Device" means all hardware provided by Axon under this Agreement. Axon-manufactured Devices are a subset of Axon Devices.

1.3. "Quote" means an offer to sell and is only valid for devices and services on the offer at the specified prices.

Any inconsistent or supplemental terms within Agency’s purchase order in response to a Quote will be void.

Orders are subject to prior credit approval. Changes in the deployment estimated ship date may change charges in the Quote. Shipping dates are estimates only. Axon is not responsible for typographical errors in any Quote by Axon, and Axon reserves the right to cancel any orders resulting from such errors.

1.4. "Services" means all services provided by Axon under this Agreement, including software, Axon Cloud Services, and professional services.

2. Term. This Agreement begins on the Effective Date and continues until all subscriptions hereunder have expired or have been terminated ("Term").

2.1. All subscriptions including Axon Evidence, Axon Fleet, Officer Safety Plans, Technology Assurance Plans, and TASER 7 or TASER 10 plans begin on the date stated in the Quote. Each subscription term ends upon completion of the subscription stated in the Quote ("Subscription Term").

2.2. Upon completion of the Subscription Term, the Subscription Term will automatically renew for an additional 5 years ("Renewal Term"). For purchase of TASER 7 or TASER 10 as a standalone, Axon may increase pricing to its then-current list pricing for any Renewal Term. For all other purchases, Axon may increase pricing on all line items in the Quote by up to 3% at the beginning of each year of the Renewal Term. New devices and services may require additional terms. Axon will not authorize services until Axon receives a signed Quote or accepts a purchase order, whichever is first.

3. Payment. Axon invoices upon shipment, or on the date specified within the invoicing plan in the Quote. Payment is due net 30 days from the invoice date. Payment obligations are non-cancelable. Unless otherwise prohibited by law, Agency will pay interest on all past-due sums at the lower of one-and-a-half percent (1.5%) per month or the highest rate allowed by law. Agency will pay invoices without setoff, deduction, or withholding. If Axon sends a past due account to collections, Agency is responsible for collection and attorneys’ fees.

4. Taxes. Agency is responsible for sales and other taxes associated with the order unless Agency provides Axon a valid tax exemption certificate.

5. Shipping. Axon may make partial shipments and ship Axon Devices from multiple locations. All shipments are EXW (Incoterms 2020) via common carrier. Title and risk of loss pass to Agency upon Axon’s delivery to the common carrier. Agency is responsible for any shipping charges in the Quote.

6. Returns. All sales are final. Axon does not allow refunds or exchanges, except warranty returns or as provided by state or federal law.

7. Warranty.

7.1. Limited Warranty. Axon warrants that Axon-manufactured Devices are free from defects in workmanship and materials for one (1) year from the date of Agency’s receipt, except Signal Sidearm and Axon-manufactured accessories, which Axon warrants for thirty (30) months and ninety (90) days, respectively, from the date of Agency’s receipt. Used conducted energy weapon ("CEW") cartridges are deemed to have operated properly.

Extended warranties run from the expiration of the one- (1-) year hardware warranty through the extended warranty term.

7.2. Disclaimer. All software and Axon Cloud Services are provided "AS IS," without any warranty of any kind, either express or implied, including without limitation the implied warranties of merchantability, ATTACHMENT 3

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fitness for a particular purpose and non-infringement. Axon Devices and Services that are not manufactured, published or performed by Axon ("Third-Party Products") are not covered by Axon’s warranty and are only subject to the warranties of the third-party provider or manufacturer.

7.3. Claims. If Axon receives a valid warranty claim for an Axon-manufactured Device during the warranty term, Axon’s sole responsibility is to repair or replace the Axon-manufactured Device with the same or like Axonmanufactured Device, at Axon’s option. A replacement Axon-manufactured Device will be new or like new.

Axon will warrant the replacement Axon-manufactured Device for the longer of (a) the remaining warranty of the original Axon-manufactured Device or (b) ninety (90) days from the date of repair or replacement.

7.3.1. If Agency exchanges an Axon Device or part, the replacement item becomes Agency’s property, and the replaced item becomes Axon’s property. Before delivering an Axon-manufactured Device for service, Agency must upload Axon-manufactured Device data to Axon Evidence or download it and retain a copy. Axon is not responsible for any loss of software, data, or other information contained in storage media or any part of the Axon-manufactured Device sent to Axon for service.

7.4. Spare Axon Devices. At Axon's reasonable discretion, Axon may provide Agency a predetermined number of spare Axon Devices as detailed in the Quote ("Spare Axon Devices"). Spare Axon Devices are intended to replace broken or non-functioning units while Agency submits the broken or non-functioning units, through Axon’s warranty return process. Axon will repair or replace the unit with a replacement Axon Device. Title and risk of loss for all Spare Axon Devices shall pass to Agency in accordance with shipping terms under Section

5. Axon assumes no liability or obligation in the event Agency does not utilize Spare Axon Devices for the intended purpose.

7.5. Limitations. Axon’s warranty excludes damage related to: (a) failure to follow Axon Device use instructions; (b) Axon Devices used with equipment not manufactured or recommended by Axon; (c) abuse, misuse, or intentional damage to Axon Device; (d) force majeure; (e) Axon Devices repaired or modified by persons other than Axon without Axon’s written permission; or (f) Axon Devices with a defaced or removed serial number.

Axon’s warranty will be void if Agency resells Axon Devices.

7.5.1.To the extent permitted by law, the above warranties and remedies are exclusive. Axon disclaims all other warranties, remedies, and conditions, whether oral, written, statutory, or implied. If statutory or implied warranties cannot be lawfully disclaimed, then such warranties are limited to the duration of the warranty described above and by the provisions in this Agreement. Agency confirms and agrees that, in deciding whether to sign this Agreement, it has not relied on any statement or representation by Axon or anyone acting on behalf of Axon related to the subject matter of this Agreement that is not in this Agreement.

7.5.2. Axon’s cumulative liability to any party for any loss or damage resulting from any claim, demand, or action arising out of or relating to any Axon Device or Service will not exceed the purchase price paid to Axon for the Axon Device, or if for Services, the amount paid for such Services over the twelve (12) months preceding the claim. Neither Party will be liable for direct, special, indirect, incidental, punitive or consequential damages, however caused, whether for breach of warranty or contract, negligence, strict liability, tort or any other legal theory.

7.6. Online Support Platforms. Use of Axon's online support platforms (e.g., Axon Academy and MyAxon) is governed by the Axon Online Support Platforms Terms of Use Appendix available at www.axon.com/salesterms-and-conditions.

7.7. Third-Party Software and Services. Use of software or services other than those provided by Axon is governed by the terms, if any, entered into between Agency and the respective third-party provider, including, without limitation, the terms applicable to such software or services located at www.axon.com/sales-termsand-conditions, if any.

7.8. Axon Aid. Upon mutual agreement between Axon and Agency, Axon may provide certain products and services to Agency, as a charitable donation under the Axon Aid program. In such event, Agency expressly waives and releases any and all claims, now known or hereafter known, against Axon and its officers, directors, employees, agents, contractors, affiliates, successors, and assigns (collectively, "Releasees"), including but not limited to, on account of injury, death, property damage, or loss of data, arising out of or attributable to the Axon Aid program whether arising out of the negligence of any Releasees or otherwise. Agency agrees not to make or bring any such claim against any Releasee, and forever release and discharge all Releasees from liability under such claims. Agency expressly allows Axon to publicly announce its participation in Axon Aid and use its name in marketing materials. Axon may terminate the Axon Aid program without cause immediately upon notice to the Agency.

8. Statement of Work. Certain Axon Devices and Services, including Axon Interview Room, Axon Channel Services,

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Release Date: 11/29/2023 Page 3 of 41
and Axon Fleet, may require a Statement of Work that details Axon’s Service deliverables ("SOW"). In the event Axon provides an SOW to Agency, Axon is only responsible for the performance of Services described in the SOW.

Additional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule. The SOW is incorporated into this Agreement by reference.

9. Axon Device Warnings. See www.axon.com/legal for the most current Axon Device warnings.

10. Design Changes. Axon may make design changes to any Axon Device or Service without notifying Agency or making the same change to Axon Devices and Services previously purchased by Agency.

11. Bundled Offerings. Some offerings in bundled offerings may not be generally available at the time of Agency’s purchase. Axon will not provide a refund, credit, or additional discount beyond what is in the Quote due to a delay of availability or Agency’s election not to utilize any portion of an Axon bundle.

12. Insurance. Axon will maintain General Liability, Workers’ Compensation, and Automobile Liability insurance. Upon request, Axon will supply certificates of insurance.

13. IP Rights. Axon owns and reserves all right, title, and interest in Axon-manufactured Devices and Services and suggestions to Axon, including all related intellectual property rights. Agency will not cause any Axon proprietary rights to be violated.

14. IP Indemnification. Axon will indemnify Agency against all claims, losses, and reasonable expenses from any thirdparty claim alleging that the use of Axon-manufactured Devices or Services infringes or misappropriates the thirdparty’s intellectual property rights. Agency must promptly provide Axon with written notice of such claim, tender to Axon the defense or settlement of such claim at Axon’s expense and cooperate fully with Axon in the defense or settlement of such claim. Axon’s IP indemnification obligations do not apply to claims based on (a) modification of Axon-manufactured Devices or Services by Agency or a third-party not approved by Axon; (b) use of Axonmanufactured Devices and Services in combination with hardware or services not approved by Axon; (c) use of Axon Devices and Services other than as permitted in this Agreement; or (d) use of Axon software that is not the most current release provided by Axon.

15. Agency Responsibilities. Agency is responsible for (a) Agency’s use of Axon Devices; (b) breach of this Agreement or violation of applicable law by Agency or an Agency end user; (c) disputes between Agency and a third-party over Agency’s use of Axon Devices; (d) ensuring Axon Devices are destroyed and disposed of securely and sustainably at Agency’s cost; and (e) any regulatory violations or fines, as a result of improper destruction or disposal of Axon Devices.

16. Termination.

16.1. For Breach. A Party may terminate this Agreement for cause if it provides thirty (30) days written notice of the breach to the other Party, and the breach remains uncured at the end of thirty (30) days. If Agency terminates this Agreement due to Axon’s uncured breach, Axon will refund prepaid amounts on a prorated basis based on the effective date of termination.

16.2. By Agency. If sufficient funds are not appropriated or otherwise legally available to pay the fees, Agency may terminate this Agreement. Agency will deliver notice of termination under this section as soon as reasonably practicable.

16.3. Effect of Termination. Upon termination of this Agreement, Agency rights immediately terminate. Agency remains responsible for all fees incurred before the effective date of termination. If Agency purchases Axon Devices for less than the manufacturer’s suggested retail price ("MSRP") and this Agreement terminates before the end of the Term, Axon will invoice Agency the difference between the MSRP for Axon Devices received, including any Spare Axon Devices, and amounts paid towards those Axon Devices. Only if terminating for nonappropriation, Agency may return Axon Devices to Axon within thirty (30) days of termination. MSRP is the standalone price of the individual Axon Device at the time of sale. For bundled Axon Devices, MSRP is the standalone price of all individual components.

17. Confidentiality. "Confidential Information" means nonpublic information designated as confidential or, given the nature of the information or circumstances surrounding disclosure, should reasonably be understood to be confidential. Each Party will take reasonable measures to avoid disclosure, dissemination, or unauthorized use of the other Party’s Confidential Information. Unless required by law, neither Party will disclose the other Party’s Confidential Information during the Term and for five (5) years thereafter. To the extent permissible by law, Axon pricing is Confidential Information and competition sensitive. If Agency receives a public records request to disclose Axon Confidential Information, to the extent allowed by law, Agency will provide notice to Axon before disclosure. Axon may publicly announce information related to this Agreement.

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Version: 19.2
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18. General.

18.1. Force Majeure. Neither Party will be liable for any delay or failure to perform due to a cause beyond a Party’s reasonable control.

18.2. Independent Contractors. The Parties are independent contractors. Neither Party has the authority to bind the other. This Agreement does not create a partnership, franchise, joint venture, agency, fiduciary, or employment relationship between the Parties.

18.3. Third-Party Beneficiaries. There are no third-party beneficiaries under this Agreement.

18.4. Non-Discrimination. Neither Party nor its employees will discriminate against any person based on race; religion; creed; color; sex; gender identity and expression; pregnancy; childbirth; breastfeeding; medical conditions related to pregnancy, childbirth, or breastfeeding; sexual orientation; marital status; age; national origin; ancestry; genetic information; disability; veteran status; or any class protected by local, state, or federal law.

18.5. Export Compliance. Each Party will comply with all import and export control laws and regulations.

18.6. Assignment. Neither Party may assign this Agreement without the other Party’s prior written consent. Axon may assign this Agreement, its rights, or obligations without consent: (a) to an affiliate or subsidiary; or (b) for purposes of financing, merger, acquisition, corporate reorganization, or sale of all or substantially all its assets.

This Agreement is binding upon the Parties respective successors and assigns.

18.7. Waiver. No waiver or delay by either Party in exercising any right under this Agreement constitutes a waiver of that right.

18.8. Severability. If a court of competent jurisdiction holds any portion of this Agreement invalid or unenforceable, the remaining portions of this Agreement will remain in effect.

18.9. Survival. The following sections will survive termination: Payment, Warranty, Axon Device Warnings, Indemnification, IP Rights, and Agency Responsibilities.

18.10.Governing Law. The laws of the country, state, province, or municipality where Agency is physically located, without reference to conflict of law rules, govern this Agreement and any dispute arising from it. The United Nations Convention for the International Sale of Goods does not apply to this Agreement.

18.11.Notices. All notices must be in English. Notices posted on Agency’s Axon Evidence site are effective upon posting. Notices by email are effective on the sent date of the email. Notices by personal delivery are effective immediately. Notices to Agency shall be provided to the address on file with Axon. Notices to Axon shall be provided to Axon Enterprise, Inc., Attn: Legal, 17800 North 85th Street, Scottsdale, Arizona 85255 with a copy to [email protected].

18.12 Entire Agreement. This Agreement, the Appendices, including any applicable Appendices not attached herein for the products and services purchased, which are incorporated by reference and located in the Master Purchasing and Services Agreement located at https://www.axon.com/sales-terms-and-conditions,Quote and any SOW(s), represents the entire agreement between the Parties. This Agreement supersedes all prior agreements or understandings, whether written or verbal, regarding the subject matter of this Agreement. This Agreement may only be modified or amended in a writing signed by the Parties.

Each Party, by and through its respective representative authorized to execute this Agreement, has duly executed and delivered this Agreement as of the date of signature.

AXON: AGENCY:

Axon Enterprise, Inc. ___________________________
Signature: Signature:

Name: Name:

Title: Title:

Date: Date:

Master Services and Purchasing Agreement for Agency
Title: Master Services and Purchasing Agreement between Axon and Agency Department: Legal
Version: 19.2
Release Date: 11/29/2023 Page 5 of 41
Axon Cloud Services Terms of Use Appendix

1. Definitions.
a. "Agency Content" is data uploaded into, ingested by, or created in Axon Cloud Services within Agency’s tenant, including media or multimedia uploaded into Axon Cloud Services by Agency. Agency Content includes Evidence but excludes Non-Content Data. b. "Evidence" is media or multimedia uploaded into Axon Evidence as 'evidence' by an Agency. Evidence is a subset of Agency Content.
c. "Non-Content Data" is data, configuration, and usage information about Agency’s Axon Cloud Services tenant, Axon Devices and client software, and users that is transmitted or generated when using Axon Devices. Non-Content Data includes data about users captured during account management and customer support activities. Non-Content Data does not include Agency Content. d. "Personal Data" means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person.

2. Access. Upon Axon granting Agency a subscription to Axon Cloud Services, Agency may access and use Axon Cloud Services to store and manage Agency Content. Agency may not exceed more end users than the Quote specifies. Axon Air requires an Axon Evidence subscription for each drone operator. For Axon Evidence Lite, Agency may access and use Axon Evidence only to store and manage TASER CEW and TASER CAM data ("TASER Data"). Agency may not upload non-TASER Data to Axon Evidence Lite.

3. Agency Owns Agency Content. Agency controls and owns all right, title, and interest in Agency Content. Except as outlined herein, Axon obtains no interest in Agency Content, and Agency Content is not Axon’s business records. Agency is solely responsible for uploading, sharing, managing, and deleting Agency Content. Axon will only have access to Agency Content for the limited purposes set forth herein. Agency agrees to allow Axon access to Agency Content to (a) perform troubleshooting, maintenance, or diagnostic screenings; and (b) enforce this Agreement or policies governing use of the Axon products.

4. Security. Axon will implement commercially reasonable and appropriate measures to secure Agency Content against accidental or unlawful loss, access or disclosure. Axon will maintain a comprehensive information security program to protect Axon Cloud Services and Agency Content including logical, physical access, vulnerability, risk, and configuration management; incident monitoring and response; encryption of uploaded digital evidence; security education; and data protection. Axon agrees to the Federal Bureau of Investigation Criminal Justice Information Services Security Addendum.

5. Agency Responsibilities. Agency is responsible for (a) ensuring Agency owns Agency Content; (b) ensuring no Agency Content or Agency end user’s use of Agency Content or Axon Cloud Services violates this Agreement or applicable laws; and (c) maintaining necessary computer equipment and Internet connections for use of Axon Cloud Services. If Agency becomes aware of any violation of this Agreement by an end user, Agency will immediately terminate that end user’s access to Axon Cloud Services. a. Agency will also maintain the security of end usernames and passwords and security and access by end users to Agency Content. Agency is responsible for ensuring the configuration and utilization of Axon Cloud Services meet applicable Agency regulation and standards. Agency may not sell, transfer, or sublicense access to any other entity or person. Agency shall contact Axon immediately if an unauthorized party may be using Agency’s account or Agency Content, or if account information is lost or stolen.
b. To the extent Agency uses the Axon Cloud Services to interact with YouTube®, such use may be governed by the YouTube Terms of Service, available at
https://www.youtube.com/static?template=terms.

6. Privacy. Agency’s use of Axon Cloud Services is subject to the Axon Cloud Services Privacy Policy, a current version of which is available at https://www.axon.com/legal/cloud-services-privacy-policy. Agency agrees to allow Axon access to Non-Content Data from Agency to (a) perform troubleshooting, maintenance, or diagnostic

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screenings; (b) provide, develop, improve, and support current and future Axon products and related services; and (c) enforce this Agreement or policies governing the use of Axon products.

7. Axon Body 3 Wi-Fi Positioning. Axon Body 3 cameras offer a feature to enhance location services where GPS/GNSS signals may not be available, for instance, within buildings or underground. Agency administrators can manage their choice to use this service within the administrative features of Axon Cloud Services. If Agency chooses to use this service, Axon must also enable the usage of the feature for Agency’s Axon Cloud Services tenant. Agency will not see this option with Axon Cloud Services unless Axon has enabled Wi-Fi Positioning for Agency’s Axon Cloud Services tenant. When Wi-Fi Positioning is enabled by both Axon and Agency, NonContent and Personal Data will be sent to Skyhook Holdings, Inc. ("Skyhook") to facilitate the Wi-Fi Positioning functionality. Data controlled by Skyhook is outside the scope of the Axon Cloud Services Privacy Policy and is subject to the Skyhook Services Privacy Policy.

8. Storage. For Axon Unlimited Device Storage subscriptions, Agency may store unlimited data in Agency's Axon Evidence account only if data originates from Axon Capture or the applicable Axon Device. Axon may charge Agency additional fees for exceeding purchased storage amounts. Axon may place Agency Content that Agency has not viewed or accessed for six (6) months into archival storage. Agency Content in archival storage will not have immediate availability and may take up to twenty-four (24) hours to access.

For Third-Party Unlimited Storage the following restrictions apply: (i) it may only be used in conjunction with a valid Axon’s Evidence.com user license; (ii) is limited to data of the law enforcement agency that purchased the Third-Party Unlimited Storage and the Axon’s Evidence.com end user or Agency is prohibited from storing data for other law enforcement agencies; and (iii) Agency may only upload and store data that is directly related to:
(1) the investigation of, or the prosecution of a crime; (2) common law enforcement activities; or (3) any Agency Content created by Axon Devices or Evidence.com.

9. Location of Storage. Axon may transfer Agency Content to third-party subcontractors for storage. Axon will determine the locations of data centers for storage of Agency Content. For United States agencies, Axon will ensure all Agency Content stored in Axon Cloud Services remains within the United States. Ownership of Agency Content remains with Agency.

10. Suspension. Axon may temporarily suspend Agency’s or any end user’s right to access or use any portion or all of Axon Cloud Services immediately upon notice, if Agency or end user’s use of or registration for Axon Cloud Services may (a) pose a security risk to Axon Cloud Services or any third-party; (b) adversely impact Axon Cloud Services, the systems, or content of any other customer; (c) subject Axon, Axon’s affiliates, or any third-party to liability; or (d) be fraudulent. Agency remains responsible for all fees incurred through suspension. Axon will not delete Agency Content because of suspension, except as specified in this Agreement.

11. Axon Cloud Services Warranty. Axon disclaims any warranties or responsibility for data corruption or errors before Agency uploads data to Axon Cloud Services.

12. Axon Records. Axon Records is the software-as-a-service product that is generally available at the time Agency purchases an OSP 7 or OSP 10 bundle. During Agency’s Axon Records Subscription Term, if any, Agency will be entitled to receive Axon’s Update and Upgrade releases on an if-and-when available basis. a. The Axon Records Subscription Term will end upon the completion of the Axon Records Subscription as documented in the Quote, or if purchased as part of an OSP 7 or OSP 10 bundle, upon completion of the OSP 7 or OSP 10 Term ("Axon Records Subscription") b. An "Update" is a generally available release of Axon Records that Axon makes available from time to time. An "Upgrade" includes (i) new versions of Axon Records that enhance features and functionality, as solely determined by Axon; and/or (ii) new versions of Axon Records that provide additional features or perform additional functions. Upgrades exclude new products that Axon introduces and markets as distinct products or applications.
c. New or additional Axon products and applications, as well as any Axon professional services needed to configure Axon Records, are not included. If Agency purchases Axon Records as part of a bundled offering, the Axon Record subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Records to Agency.
d. Users of Axon Records at the Agency may upload files to entities (incidents, reports, cases, etc) in Axon Records with no limit to the number of files and amount of storage. Notwithstanding the foregoing, Axon

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may limit usage should the Agency exceed an average rate of one-hundred (100) GB per user per year of uploaded files. Axon will not bill for overages.

13. Axon Cloud Services Restrictions. Agency and Agency end users (including employees, contractors, agents, officers, volunteers, and directors), may not, or may not attempt to:
a. copy, modify, tamper with, repair, or create derivative works of any part of Axon Cloud Services; b. reverse engineer, disassemble, or decompile Axon Cloud Services or apply any process to derive any source code included in Axon Cloud Services, or allow others to do the same; c. access or use Axon Cloud Services with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas;
d. use trade secret information contained in Axon Cloud Services, except as expressly permitted in this Agreement;
e. access Axon Cloud Services to build a competitive device or service or copy any features, functions, or graphics of Axon Cloud Services;
f. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon’s or Axon’s licensors on or within Axon Cloud Services; or g. use Axon Cloud Services to store or transmit infringing, libelous, or other unlawful or tortious material; material in violation of third-party privacy rights; or malicious code.

14. After Termination. Axon will not delete Agency Content for ninety (90) days following termination. There will be no functionality of Axon Cloud Services during these ninety (90) days other than the ability to retrieve Agency Content. Agency will not incur additional fees if Agency downloads Agency Content from Axon Cloud Services during this time. Axon has no obligation to maintain or provide Agency Content after these ninety (90) days and will thereafter, unless legally prohibited, delete all Agency Content. Upon request, Axon will provide written proof that Axon successfully deleted and fully removed all Agency Content from Axon Cloud Services.

15. Post-Termination Assistance. Axon will provide Agency with the same post-termination data retrieval assistance that Axon generally makes available to all customers. Requests for Axon to provide additional assistance in downloading or transferring Agency Content, including requests for Axon’s data egress service, will result in additional fees and Axon will not warrant or guarantee data integrity or readability in the external system.

16. U.S. Government Rights. If Agency is a U.S. Federal department or using Axon Cloud Services on behalf of a U.S. Federal department, Axon Cloud Services is provided as a "commercial item," "commercial computer software," "commercial computer software documentation," and "technical data", as defined in the Federal Acquisition Regulation and Defense Federal Acquisition Regulation Supplement. If Agency is using Axon Cloud Services on behalf of the U.S. Government and these terms fail to meet the U.S. Government’s needs or are inconsistent in any respect with federal law, Agency will immediately discontinue use of Axon Cloud Services.

17. Survival. Upon any termination of this Agreement, the following sections in this Appendix will survive: Agency Owns Agency Content, Privacy, Storage, Axon Cloud Services Warranty, and Axon Cloud Services Restrictions.

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Axon Customer Experience Improvement Program Appendix

1. Axon Customer Experience Improvement Program (ACEIP). The ACEIP is designed to accelerate Axon’s development of technology, such as building and supporting automated features, to ultimately increase safety within communities and drive efficiency in public safety. To this end, subject to the limitations on Axon as described below, Axon, where allowed by law, may make limited use of Agency Content from all of its customers to provide, develop, improve, and support current and future Axon products (collectively, "ACEIP Purposes"). However, at all times, Axon will comply with its obligations pursuant to the Axon Cloud Services Terms of Use Appendix to maintain a comprehensive data security program (including compliance with the CJIS Security Policy for Criminal Justice Information), privacy program, and data governance policy, including high industry standards of de-identifying Personal Data, to enforce its security and privacy obligations for the ACEIP. ACEIP has 2 tiers of participation, Tier 1 and Tier 2. By default, Agency will be a participant in ACEIP Tier 1. If Agency does not want to participate in ACEIP Tier 1, Agency can revoke its consent at any time. If Agency wants to participate in Tier 2, as detailed below, Agency can check the ACEIP Tier 2 box below. If Agency does not want to participate in ACEIP Tier 2, Agency should leave box unchecked. At any time, Agency may revoke its consent to ACEIP Tier 1, Tier 2, or both Tiers.

2. ACEIP Tier 1.

2.1. When Axon uses Agency Content for the ACEIP Purposes, Axon will extract from Agency Content and may store separately copies of certain segments or elements of the Agency Content (collectively, "ACEIP Content").

When extracting ACEIP Content, Axon will use commercially reasonable efforts to aggregate, transform or deidentify Agency Content so that the extracted ACEIP Content is no longer reasonably capable of being associated with, or could reasonably be linked directly or indirectly to a particular individual ("Privacy Preserving Technique(s)"). For illustrative purposes, some examples are described in footnote 11. For clarity, ACEIP Content will still be linked indirectly, with an attribution, to the Agency from which it was extracted. This attribution will be stored separately from the data itself, but is necessary for and will be solely used to enable Axon to identify and delete all ACEIP Content upon Agency request. Once de-identified, ACEIP Content may then be further modified, analyzed, and used to create derivative works. At any time, Agency may revoke the consent granted herein to Axon to access and use Agency Content for ACEIP Purposes. Within 30 days of receiving the Agency’s request, Axon will no longer access or use Agency Content for ACEIP Purposes and will delete any and all ACEIP Content. Axon will also delete any derivative works which may reasonably be capable of being associated with, or could reasonably be linked directly or indirectly to Agency. In addition, if Axon uses Agency Content for the ACEIP Purposes, upon request, Axon will make available to Agency a list of the specific type of Agency Content being used to generate ACEIP Content, the purpose of such use, and the retention, privacy preserving extraction technique, and relevant data protection practices applicable to the Agency Content or ACEIP Content ("Use Case"). From time to time, Axon may develop and deploy new Use Cases. At least 30 days prior to authorizing the deployment of any new Use Case, Axon will provide Agency notice (by updating the list of Use Case at https://www.axon.com/aceip and providing Agency with a mechanism to obtain notice of that update or another commercially reasonable method to Agency designated contact) ("New Use Case").

2.2. Expiration of ACEIP Tier 1. Agency consent granted herein will expire upon termination of the Agreement. In accordance with section 1.1.1, within 30 days of receiving the Agency’s request, Axon will no longer access or use Agency Content for ACEIP Purposes and will delete ACEIP Content. Axon will also delete any derivative works which may reasonably be capable of being associated with, or could reasonably be linked directly or indirectly to, Agency.

3. ACEIP Tier 2. In addition to ACEIP Tier 1, if Agency wants to help further improve Axon’s services, Agency may choose to participate in Tier 2 of the ACEIP. ACEIP Tier 2 grants Axon certain additional rights to use Agency Content, in addition to those set forth in Tier 1 above, without the guaranteed deployment of a Privacy Preserving Technique 1 For example; (a) when extracting specific text to improve automated transcription capabilities, text that could be used to directly identify a particular individual would not be extracted, and extracted text would be disassociated from identifying metadata of any speakers, and the extracted text would be split into individual words and aggregated with other data sources (including publicly available data) to remove any reasonable ability to link any specific text directly or indirectly back to a particular individual; (b) when extracting license plate data to improve Automated License Plate Recognition (ALPR) capabilities, individual license plate characters would be extracted and disassociated from each other so a complete plate could not be reconstituted, and all association to other elements of the source video, such as the vehicle, location, time, and the surrounding environment would also be removed; (c) when extracting audio of potential acoustic events (such as glass breaking or gun shots), very short segments (<1 second) of audio that only contains the likely acoustic events would be extracted and all human utterances would be removed.

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to enable product development, improvement, and support that cannot be accomplished with aggregated, transformed, or de-identified data.
☐ Check this box if Agency wants to help further improve Axon’s services by participating in ACEIP Tier 2 in addition to Tier 1. Axon will not enroll Agency into ACEIP Tier 2 until Axon and Agency agree to terms in writing providing for such participation in ACEIP Tier 2.

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Professional Services Appendix
If any of the Professional Services specified below are included on the Quote, this Appendix applies.

1. Utilization of Services. Agency must use professional services as outlined in the Quote and this Appendix within six (6) months of the Effective Date.

2. Axon Full Service (Axon Full Service). Axon Full Service includes advance remote project planning and configuration support and up to four (4) consecutive days of on-site service and a professional services manager to work with Agency to assess Agency’s deployment and determine which on-site services are appropriate. If Agency requires more than four (4) consecutive on-site days, Agency must purchase additional days. Axon Full Service options include:

System set up and configuration
• Instructor-led setup of Axon View on smartphones (if applicable) • Configure categories and custom roles based on Agency need • Register cameras to Agency domain
• Troubleshoot IT issues with Axon Evidence and Axon Dock ("Dock") access • One on-site session included
Dock configuration
• Work with Agency to decide the ideal location of Docks and set configurations on Dock • Authenticate Dock with Axon Evidence using admin credentials from Agency • On-site assistance, not to include physical mounting of docks Best practice implementation planning session
• Provide considerations for the establishment of video policy and system operations best practices based on Axon’s observations with other agencies
• Discuss the importance of entering metadata in the field for organization purposes and other best practices for digital data management
• Provide referrals of other agencies using the Axon camera devices and Axon Evidence • Recommend rollout plan based on review of shift schedules System Admin and troubleshooting training sessions
Step-by-step explanation and assistance for Agency’s configuration of security, roles & permissions, categories & retention, and other specific settings for Axon Evidence Axon instructor training (Train the Trainer)
Training for Agency’s in-house instructors who can support Agency’s Axon camera and Axon Evidence training needs after Axon has fulfilled its contractual on-site obligations Evidence sharing training
Tailored workflow instruction for Investigative Units on sharing Cases and Evidence with local prosecuting agencies
End user go-live training and support sessions
• Assistance with device set up and configuration
• Training on device use, Axon Evidence, and Evidence Sync Implementation document packet
Axon Evidence administrator guides, camera implementation guides, network setup guide, sample policies, and categories & roles guide
Post go-live review

3. Body-Worn Camera Starter Service (Axon Starter). Axon Starter includes advance remote project planning and configuration support and one (1) day of on-site Services and a professional services manager to work closely with Agency to assess Agency’s deployment and determine which Services are appropriate. If Agency requires more than one (1) day of on-site Services, Agency must purchase additional on-site Services. The Axon Starter options include:

System set up and configuration (Remote Support)
• Instructor-led setup of Axon View on smartphones (if applicable)

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• Configure categories & custom roles based on Agency need • Troubleshoot IT issues with Axon Evidence and Dock access Dock configuration
• Work with Agency to decide the ideal location of Dock setup and set configurations on Dock • Authenticate Dock with Axon Evidence using "Administrator" credentials from Agency • Does not include physical mounting of docks
Axon instructor training (Train the Trainer)
Training for Agency’s in-house instructors who can support Agency’s Axon camera and Axon Evidence training needs after Axon’s has fulfilled its contracted on-site obligations End user go-live training and support sessions
• Assistance with device set up and configuration
• Training on device use, Axon Evidence, and Evidence Sync Implementation document packet
Axon Evidence administrator guides, camera implementation guides, network setup guide, sample policies, and categories & roles guide

4. Body-Worn Camera Virtual 1-Day Service (Axon Virtual). Axon Virtual includes all items in the BWC Starter Service Package, except one (1) day of on-site services.

5. CEW Services Packages. CEW Services Packages are detailed below:

System set up and configuration
• Configure Axon Evidence categories & custom roles based on Agency need. • Troubleshoot IT issues with Axon Evidence.
• Register users and assign roles in Axon Evidence.
• For the CEW Full Service Package: On-site assistance included • For the CEW Starter Package: Virtual assistance included Dedicated Project Manager
Assignment of specific Axon representative for all aspects of planning the rollout (Project Manager). Ideally, Project Manager will be assigned to Agency 4–6 weeks before rollout Best practice implementation planning session to include:
• Provide considerations for the establishment of CEW policy and system operations best practices based on Axon’s observations with other agencies
• Discuss the importance of entering metadata and best practices for digital data management • Provide referrals to other agencies using TASER CEWs and Axon Evidence • For the CEW Full Service Package: On-site assistance included • For the CEW Starter Package: Virtual assistance included System Admin and troubleshooting training sessions
On-site sessions providing a step-by-step explanation and assistance for Agency’s configuration of security, roles & permissions, categories & retention, and other specific settings for Axon Evidence Axon Evidence Instructor training
• Provide training on the Axon Evidence to educate instructors who can support Agency’s subsequent Axon Evidence training needs.
• For the CEW Full Service Package: Training for up to 3 individuals at Agency • For the CEW Starter Package: Training for up to 1 individual at Agency TASER CEW inspection and device assignment
Axon’s on-site professional services team will perform functions check on all new TASER CEW Smart weapons and assign them to a user on Axon Evidence.

Post go-live review
For the CEW Full Service Package: On-site assistance included.

For the CEW Starter Package: Virtual assistance included.

6. Smart Weapon Transition Service. The Smart Weapon Transition Service includes:

Archival of CEW Firing Logs
Axon’s on-site professional services team will upload CEW firing logs to Axon Evidence from all TASER CEW Smart Weapons that Agency is replacing with newer Smart Weapon models.

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Return of Old Weapons
Axon’s on-site professional service team will ship all old weapons back to Axon’s headquarters.

Axon will provide Agency with a Certificate of Destruction *Note: CEW Full Service packages for TASER 7 or TASER 10 include Smart Weapon Transition Service instead of 1-Day Device Specific Instructor Course.

7. VR Services Package. VR Service includes advance remote project planning and configuration support and one (1) day of on-site service and a professional services manager to work with Agency to assess Agency's deployment and determine which Services are appropriate. The VR Service training options include:

System set up and configuration (Remote Support)
• Instructor-led setup of Axon VR headset content
• Configure agency settings based on Agency need
• Troubleshoot IT issues with Axon VR headset
Axon instructor training (Train the Trainer)
Training for up to five (5) Agency's in-house instructors who can support Agency's Axon VR CET and SIM training needs after Axon’s has fulfilled its contracted on-site obligations Classroom and practical training sessions
Step-by-step explanation and assistance for Agency's configuration of Axon VR CET and SIM functionality, basic operation, and best practices

8. Axon Air, On-Site Training. Axon Air, On-Site training includes advance remote project planning and configuration support and one (1) day of on-site Services and a professional services manager to work closely with Agency to assess Agency's deployment and determine which Services are appropriate. If Agency's requires more than one (1) day of on-site Services, Agency must purchase additional on-site Services. The Axon Air, On-Site training options include:

System set up and configuration (Remote Support)
• Instructor-led setup of Axon Air App (ASDS)
• Configure agency settings based on Agency need
• Configure drone controller
• Troubleshoot IT issues with Axon Evidence
Axon instructor training (Train the Trainer)
Training for Agency's in-house instructors who can support Agency's Axon Air and Axon Evidence training needs after Axon’s has fulfilled its contracted on-site obligations Classroom and practical training sessions
Step-by-step explanation and assistance for Agency's configuration of Axon Respond+ livestreaming functionality, basic operation, and best practices

9. Axon Air, Virtual Training. Axon Air, Virtual training includes all items in the Axon Air, On-Site Training Package, except the practical training session, with the Axon Instructor training for up to four hours virtually.

10. Signal Sidearm Installation Service.
a. Purchases of 50 SSA units or more: Axon will provide one (1) day of on-site service and one professional services manager and will provide train the trainer instruction, with direct assistance on the first of each unique holster/mounting type. Agency is responsible for providing a suitable work/training area.
b. Purchases of less than 50 SSA units: Axon will provide a 1-hour virtual instruction session on the basics of installation and device calibration.

11. Out of Scope Services. Axon is only responsible to perform the professional services described in the Quote and this Appendix. Any additional professional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in the charges or schedule.

12. Delivery of Services. Axon personnel will work Monday through Friday, 8:30 a.m. to 5:30 p.m., except holidays.

Axon will perform all on-site tasks over a consecutive timeframe. Axon will not charge Agency travel time by Axon personnel to Agency premises as work hours.

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13. Access Computer Systems to Perform Services. Agency authorizes Axon to access relevant Agency computers and networks, solely for performing the Services. Axon will work to identify as soon as reasonably practicable resources and information Axon expects to use and will provide an initial itemized list to Agency. Agency is responsible for and assumes the risk of any problems, delays, losses, claims, or expenses resulting from the content, accuracy, completeness, and consistency of all data, materials, and information supplied by Agency.

14. Site Preparation. Axon will provide a hardcopy or digital copy of current user documentation for the Axon Devices ("User Documentation"). User Documentation will include all required environmental specifications for the professional services and Axon Devices to operate per the Axon Device User Documentation. Before installation of Axon Devices (whether performed by Agency or Axon), Agency must prepare the location(s) where Axon Devices are to be installed ("Installation Site") per the environmental specifications in the Axon Device User Documentation.

Following installation, Agency must maintain the Installation Site per the environmental specifications. If Axon modifies Axon Device User Documentation for any Axon Devices under this Agreement, Axon will provide the update to Agency when Axon generally releases it

15. Acceptance. When Axon completes professional services, Axon will present an acceptance form ("Acceptance Form") to Agency. Agency will sign the Acceptance Form acknowledging completion. If Agency reasonably believes Axon did not complete the professional services in substantial conformance with this Agreement, Agency must notify Axon in writing of the specific reasons for rejection within seven (7) calendar days from delivery of the Acceptance Form. Axon will address the issues and re-present the Acceptance Form for signature. If Axon does not receive the signed Acceptance Form or written notification of reasons for rejection within seven (7) calendar days of delivery of the Acceptance Form, Axon will deem Agency to have accepted the professional services.

16. Agency Network. For work performed by Axon transiting or making use of Agency’s network, Agency is solely responsible for maintenance and functionality of the network. In no event will Axon be liable for loss, damage, or corruption of Agency’s network from any cause.

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Technology Assurance Plan Appendix
If Technology Assurance Plan ("TAP") or a bundle including TAP is on the Quote, this appendix applies.

1. TAP Warranty. The TAP warranty is an extended warranty that starts at the end of the one- (1-) year hardware limited warranty.

2. Officer Safety Plan. If Agency purchases an Officer Safety Plan ("OSP"), Agency will receive the deliverables detailed in the Quote. Agency must accept delivery of the TASER CEW and accessories as soon as available from Axon.

3. OSP 7 or OSP 10 Term. OSP 7 or OSP 10 begins on the date specified in the Quote ("OSP Term").

4. TAP BWC Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon body-worn camera ("BWC Upgrade") as scheduled in the Quote. If Agency purchased TAP, Axon will provide a BWC Upgrade that is the same or like Axon Device, at Axon’s option. Axon makes no guarantee the BWC Upgrade will utilize the same accessories or Axon Dock.

5. TAP Dock Upgrade. If Agency has no outstanding payment obligations and purchased TAP, Axon will provide Agency a new Axon Dock as scheduled in the Quote ("Dock Upgrade"). Accessories associated with any Dock Upgrades are subject to change at Axon discretion. Dock Upgrades will only include a new Axon Dock bay configuration unless a new Axon Dock core is required for BWC compatibility. If Agency originally purchased a single-bay Axon Dock, the Dock Upgrade will be a single-bay Axon Dock model that is the same or like Axon Device, at Axon’s option. If Agency originally purchased a multi-bay Axon Dock, the Dock Upgrade will be a multi-bay Axon Dock that is the same or like Axon Device, at Axon’s option.

6. Upgrade Delay. Axon may ship the BWC and Dock Upgrades as scheduled in the Quote without prior confirmation from Agency unless the Parties agree in writing otherwise at least ninety (90) days in advance. Axon may ship the final BWC and Dock Upgrade as scheduled in the Quote sixty (60) days before the end of the Subscription Term without prior confirmation from Agency.

7. Upgrade Change. If Agency wants to upgrade Axon Device models from the current Axon Device to an upgraded Axon Device, Agency must pay the price difference between the MSRP for the current Axon Device and the MSRP for the upgraded Axon Device. If the model Agency desires has an MSRP less than the MSRP of the offered BWC Upgrade or Dock Upgrade, Axon will not provide a refund. The MSRP is the MSRP in effect at the time of the upgrade.

8. Return of Original Axon Device. Within thirty (30) days of receiving a BWC or Dock Upgrade, Agency must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon including serial numbers for the destroyed Axon Devices. If Agency does not return or destroy the Axon Devices, Axon will deactivate the serial numbers for the Axon Devices received by Agency.

9. Termination. If Agency’s payment for TAP, OSP, or Axon Evidence is more than thirty (30) days past due, Axon may terminate TAP or OSP. Once TAP or OSP terminates for any reason:

9.1. TAP and OSP coverage terminate as of the date of termination and no refunds will be given.

9.2. Axon will not and has no obligation to provide the Upgrade Models.

9.3. Agency must make any missed payments due to the termination before Agency may purchase any future TAP or OSP.

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TASER 7 Appendix
This TASER 7 Appendix applies to Agency’s TASER 7, OSP 7, or OSP 7 Plus purchase from Axon, if applicable.

1. Duty Cartridge Replenishment Plan. If the Quote includes "Duty Cartridge Replenishment Plan", Agency must purchase the plan for each CEW user. A CEW user includes officers that use a CEW in the line of duty and those that only use a CEW for training. Agency may not resell cartridges received. Axon will only replace cartridges used in the line of duty.

2. Training. If the Quote includes a training voucher, Agency must use the voucher within one (1) year of issuance, or the voucher will be void. Axon will issue Agency a voucher annually beginning on the start of the TASER Subscription Term. The voucher has no cash value. Agency cannot exchange it for another device or service. Unless stated in the Quote, the voucher does not include travel expenses and will be Agency’s responsibility. If the Quote includes Axon Online Training or Virtual Reality Content Empathy Development for Autism/Schizophrenia (collectively, "Training Content"), Agency may access Training Content. Axon will deliver all Training Content electronically.

3. TASER Upgrade. If Agency purchases Axon’s 10-year certification program for Axon’s latest version of its TASER energy weapon ("Certification Program") and has no outstanding payment obligations as of the beginning of the sixth (6th) year of the Certification Program, Agency will qualify for an upgrade to any subsequent version of the Certification Program ("CEW Upgrade"). Agency will receive the CEW Upgrade at no additional cost, only to the extent such subsequent version of the Certification Program includes the same products or features as the Certification Program purchased by Agency. If Agency wants to upgrade to a Certification Program that includes additional products or features, Agency will pay the additional cost associated with such products and features. For the avoidance of doubt, Agency is not required to upgrade to any subsequent version of the Certification Program. Axon may ship the CEW Upgrade as scheduled in the Quote without prior confirmation from agency unless the Parties agree in writing otherwise at least ninety (90) days in advance. If necessary to maintain compatibility among Axon Devices, within thirty (30) days of receiving the CEW Upgrade, Agency must, if requested by Axon, return all hardware and related accessories received in connection with the Certification Program to Axon. In such event, Agency must ship batteries via ground shipping or in accordance with federal regulations in place at the time of the return. Axon will pay shipping costs for the return if Agency uses Axon’s RMA process.

4. Extended Warranty. If the Quote includes an extended warranty, the extended warranty coverage period warranty will be for a five- (5-) year term, which includes the hardware manufacturer’s warranty plus the four- (4-) year extended term.

5. Trade-in. If the Quote contains a discount on CEW-related line items, including items related to OSP, then that discount may only be applied as a trade-in credit, and Agency must return used hardware and accessories associated with the discount ("Trade-In Units") to Axon. Agency must ship batteries via ground shipping. Axon will pay shipping costs of the return. If Axon does not receive Trade-In Units within the timeframe below, Axon will invoice Agency the value of the trade-in credit. Agency may not destroy Trade-In Units and receive a trade-in credit.

Agency Size Days to Return from Start Date of TASER 7 Subscription Less than 100 officers 30 days
100 to 499 officers 90 days
500+ officers 180 days

6. TASER 7 Subscription Term. The TASER 7 Subscription Term for a standalone TASER 7 purchase begins on shipment of the TASER 7 hardware. The TASER 7 Subscription Term for OSP 7 begins on the OSP 7 start date.

7. Access Rights. Upon Axon granting Agency a TASER 7 Axon Evidence subscription, Agency may access and use Axon Evidence for the storage and management of data from TASER 7 CEW devices during the TASER 7 Subscription Term. Agency may not exceed the number of end users the Quote specifies.

8. Privacy. Axon will not disclose Agency Content or any information about Agency except as compelled by a court or administrative body or required by any law or regulation. Axon will give notice if any disclosure request is received for Agency Content, so Agency may file an objection with the court or administrative body.

9. Termination. If payment for TASER 7 is more than thirty (30) days past due, Axon may terminate Agency’s TASER 7 plan by notifying Agency. Upon termination for any reason, then as of the date of termination:

9.1. TASER 7 extended warranties and access to Training Content will terminate. No refunds will be given.

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9.2. Axon will invoice Agency the remaining MSRP for TASER 7 products received before termination. If terminating for non-appropriations, Axon will not invoice Agency if Agency returns the CEW, rechargeable battery, holster, dock, core, training suits, and unused cartridges to Axon within thirty (30) days of the date of termination.

9.3. Agency will be responsible for payment of any missed payments due to the termination before being allowed to purchase any future TASER 7 plan.

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TASER 10 Appendix
This TASER 10 Appendix applies to Agency’s TASER 10, OSP 10, OSP Plus, or OSP 10 Plus Premium purchase from Axon, if applicable.

1. Duty Cartridge Replenishment Plan. If the Quote includes "Duty Cartridge Replenishment Plan", Agency must purchase the plan for each CEW user. A CEW user includes officers that use a CEW in the line of duty and those that only use a CEW for training. Agency may not resell cartridges received. Axon will only replace cartridges used in the line of duty.

2. Training. If the Quote includes a training voucher, Agency must use the voucher within one (1) year of issuance, or the voucher will be void. Axon will issue Agency a voucher annually beginning on the start of the TASER Subscription Term. The voucher has no cash value. Agency cannot exchange it for another device or service. Unless stated in the Quote, the voucher does not include travel expenses and will be Agency’s responsibility. If the Quote includes Axon Online Training or Virtual Reality Content Empathy Development for Autism/Schizophrenia (collectively, "Training Content"), Agency may access Training Content. Axon will deliver all Training Content electronically.

3. Extended Warranty. If the Quote includes an extended warranty, the extended warranty coverage period warranty will be for a five- (5-) year term, which includes the hardware manufacturer’s warranty plus the four- (4-) year extended term.

4. Trade-in. If the Quote contains a discount on CEW-related line items, including items related to OSP, then that discount may only be applied as a trade-in credit, and Agency must return used hardware and accessories associated with the discount ("Trade-In Units") to Axon. Agency must ship batteries via ground shipping. Axon will pay shipping costs of the return. If Axon does not receive Trade-In Units within the timeframe below, Axon will invoice Agency the value of the trade-in credit. Agency may not destroy Trade-In Units and receive a trade-in credit.

Agency Size Days to Return from Start Date of TASER 10 Subscription Less than 100 officers 60 days
100 to 499 officers 90 days
500+ officers 180 days

5. TASER 10 Subscription Term. The TASER 10 Subscription Term for a standalone TASER 10 purchase begins on shipment of the TASER 10 hardware. The TASER 10 Subscription Term for OSP 10 begins on the OSP 10 start date.

6. Access Rights. Upon Axon granting Agency a TASER 10 Axon Evidence subscription, Agency may access and use Axon Evidence for the storage and management of data from TASER 10 CEW devices during the TASER 10 Subscription Term. Agency may not exceed the number of end users the Quote specifies.

7. Agency Warranty. If Agency is located in the US, Agency warrants and acknowledges that TASER 10 is classified as a firearm and is being acquired for official Agency use pursuant to a law enforcement agency transfer under the Gun Control Act of 1968.

8. Purchase Order. To comply with applicable laws and regulations, Agency must provide a purchase order to Axon prior to shipment of TASER 10.

9. Apollo Grant (US only). If Agency has received an Apollo Grant from Axon, Agency must pay all fees in the Quote prior to upgrading to any new TASER CEW offered by Axon.

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Axon Auto-Tagging Appendix
If Auto-Tagging is included on the Quote, this Appendix applies.

1. Scope. Axon Auto-Tagging consists of the development of a module to allow Axon Evidence to interact with Agency’s Computer-Aided Dispatch ("CAD") or Records Management Systems ("RMS"). This allows end users to autopopulate Axon video meta-data with a case ID, category, and location-based on data maintained in Agency’s CAD or RMS.

2. Support. For thirty (30) days after completing Auto-Tagging Services, Axon will provide up to five (5) hours of remote support at no additional charge. Axon will provide free support due to a change in Axon Evidence, if Agency maintains an Axon Evidence and Auto-Tagging subscription. Axon will not provide support if a change is required because Agency changes its CAD or RMS.

3. Changes. Axon is only responsible to perform the Services in this Appendix. Any additional Services are out of scope.

The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in fees or schedule.

4. Agency Responsibilities. Axon’s performance of Auto-Tagging Services requires Agency to:

4.1. Make available relevant systems, including Agency’s current CAD or RMS, for assessment by Axon (including remote access if possible);

4.2. Make required modifications, upgrades or alterations to Agency’s hardware, facilities, systems and networks related to Axon’s performance of Auto-Tagging Services;

4.3. Provide access to the premises where Axon is performing Auto-Tagging Services, subject to Agency safety and security restrictions, and allow Axon to enter and exit the premises with laptops and materials needed to perform Auto-Tagging Services;

4.4. Provide all infrastructure and software information (TCP/IP addresses, node names, network configuration) necessary for Axon to provide Auto-Tagging Services;

4.5. Promptly install and implement any software updates provided by Axon;

4.6. Ensure that all appropriate data backups are performed;

4.7. Provide assistance, participation, and approvals in testing Auto-Tagging Services;

4.8. Provide Axon with remote access to Agency’s Axon Evidence account when required;

4.9. Notify Axon of any network or machine maintenance that may impact the performance of the module at Agency; and

4.10. Ensure reasonable availability of knowledgeable staff and personnel to provide timely, accurate, complete, and up-to-date documentation and information to Axon.

5. Access to Systems. Agency authorizes Axon to access Agency’s relevant computers, network systems, and CAD or RMS solely for performing Auto-Tagging Services. Axon will work diligently to identify the resources and information Axon expects to use and will provide an initial list to Agency. Agency is responsible for and assumes the risk of any problems, delays, losses, claims, or expenses resulting from the content, accuracy, completeness, and consistency of all data, materials, and information supplied by Agency.

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Axon Fleet Appendix
If Axon Fleet is included on the Quote, this Appendix applies.

1. Agency Responsibilities.

1.1. Agency must ensure its infrastructure and vehicles adhere to the minimum requirements to operate Axon Fleet 2 or Axon Fleet 3 (collectively, "Axon Fleet") as established by Axon during the qualifier call and on-site assessment at Agency and in any technical qualifying questions. If Agency’s representations are inaccurate, the Quote is subject to change.

1.2. Agency is responsible for providing a suitable work area for Axon or Axon third-party providers to install Axon Fleet systems into Agency vehicles. Agency is responsible for making available all vehicles for which installation services were purchased, during the agreed upon onsite installation dates, Failure to make vehicles available may require an equitable adjustment in fees or schedule.

2. Cradlepoint. If Agency purchases Cradlepoint Enterprise Cloud Manager, Agency will comply with Cradlepoint’s end user license agreement. The term of the Cradlepoint license may differ from the Axon Evidence Subscription. If Agency requires Cradlepoint support, Agency will contact Cradlepoint directly.

3. Third-party Installer. Axon will not be liable for the failure of Axon Fleet hardware to operate per specifications if such failure results from installation not performed by, or as directed by Axon.

4. Wireless Offload Server.

4.1. License Grant. Axon grants Agency a non-exclusive, royalty-free, worldwide, perpetual license to use Wireless Offload Server ("WOS"). "Use" means storing, loading, installing, or executing WOS solely for data communication with Axon Devices for the number of licenses purchased. The WOS term begins upon the start of the Axon Evidence Subscription.

4.2. Restrictions. Agency may not: (a) modify, alter, tamper with, repair, or create derivative works of WOS; (b) reverse engineer, disassemble, or decompile WOS, apply any process to derive the source code of WOS, or allow others to do so; (c) access or use WOS to avoid incurring fees or exceeding usage limits; (d) copy WOS in whole or part; (e) use trade secret information contained in WOS; (f) resell, rent, loan or sublicense WOS; (g) access WOS to build a competitive device or service or copy any features, functions or graphics of WOS; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within WOS.

4.3. Updates. If Agency purchases WOS maintenance, Axon will make updates and error corrections to WOS ("WOS Updates") available electronically via the Internet or media as determined by Axon. Agency is responsible for establishing and maintaining adequate Internet access to receive WOS Updates and maintaining computer equipment necessary for use of WOS. The Quote will detail the maintenance term.

4.4. WOS Support. Upon request by Axon, Agency will provide Axon with access to Agency’s store and forward servers solely for troubleshooting and maintenance.

5. Axon Vehicle Software.

5.1. License Grant. Axon grants Agency a non-exclusive, royalty-free, worldwide, perpetual license to use ViewXL or Dashboard (collectively, "Axon Vehicle Software".) "Use" means storing, loading, installing, or executing Axon Vehicle Software solely for data communication with Axon Devices. The Axon Vehicle Software term begins upon the start of the Axon Evidence Subscription.

5.2. Restrictions. Agency may not: (a) modify, alter, tamper with, repair, or create derivative works of Axon Vehicle Software; (b) reverse engineer, disassemble, or decompile Axon Vehicle Software, apply any process to derive the source code of Axon Vehicle Software, or allow others to do so; (c) access or use Axon Vehicle Software to avoid incurring fees or exceeding usage limits; (d) copy Axon Vehicle Software in whole or part; (e) use trade secret information contained in Axon Vehicle Software; (f) resell, rent, loan or sublicense Axon Vehicle Software; (g) access Axon Vehicle Software to build a competitive device or service or copy any features, functions or graphics of Axon Vehicle Software; or (h) remove, alter or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Axon Vehicle Software.

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6. Acceptance Checklist. If Axon provides services to Agency pursuant to any statement of work in connection with Axon Fleet, within seven (7) days of the date on which Agency retrieves Agency's vehicle(s) from the Axon installer, said vehicle having been installed and configured with tested and fully and properly operational in-car hardware and software identified above, Agency will receive a Professional Services Acceptance Checklist to submit to Axon indicating acceptance or denial of said deliverables.

7. Axon Fleet Upgrade. If Agency has no outstanding payment obligations and has purchased the "Fleet Technology Assurance Plan" (Fleet TAP), Axon will provide Agency with the same or like model of Fleet hardware ("Axon Fleet Upgrade") as scheduled on the Quote.

7.1. If Agency would like to change models for the Axon Fleet Upgrade, Agency must pay the difference between the MSRP for the offered Axon Fleet Upgrade and the MSRP for the model desired. The MSRP is the MSRP in effect at the time of the upgrade. Agency is responsible for the removal of previously installed hardware and installation of the Axon Fleet Upgrade.

7.2. Within thirty (30) days of receiving the Axon Fleet Upgrade, Agency must return the original Axon Devices to Axon or destroy the Axon Devices and provide a certificate of destruction to Axon, including serial numbers of the destroyed Axon Devices. If Agency does not destroy or return the Axon Devices to Axon, Axon will deactivate the serial numbers for the Axon Devices received by Agency.

8. Axon Fleet Termination. Axon may terminate Agency’s Fleet subscription for non-payment. Upon any termination:

8.1. Axon Fleet subscription coverage terminates, and no refunds will be given.

8.2. Axon will not and has no obligation to provide the Axon Fleet Upgrade.

8.3. Agency will be responsible for payment of any missed payments due to the termination before being allowed to purchase any future Fleet TAP.

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Axon Respond Appendix
This Axon Respond Appendix applies to both Axon Respond and Axon Respond Plus, if either is included on the Quote.

1. Axon Respond Subscription Term. If Agency purchases Axon Respond as part of a bundled offering, the Axon Respond subscription begins on the later of the (1) start date of that bundled offering, or (2) date Axon provisions Axon Respond to Agency. If Agency purchases Axon Respond as a standalone, the Axon Respond subscription begins the later of the (1) date Axon provisions Axon Respond to Agency, or (2) first day of the month following the Effective Date. The Axon Respond subscription term will end upon the completion of the Axon Evidence Subscription associated with Axon Respond.

2. Scope of Axon Respond. The scope of Axon Respond is to assist Agency with real-time situational awareness during critical incidents to improve officer safety, effectiveness, and awareness. In the event Agency uses Axon Respond outside this scope, Axon may initiate good-faith discussions with Agency on upgrading Agency’s Axon Respond to better meet Agency’s needs.

3. Axon Body 3 LTE Requirements. Axon Respond is only available and usable with an LTE enabled body-worn camera. Axon is not liable if Agency utilizes the LTE device outside of the coverage area or if the LTE carrier is unavailable. LTE coverage is only available in the United States, including any U.S. territories. Axon may utilize a carrier of Axon’s choice to provide LTE service. Axon may change LTE carriers during the Term without Agency’s consent.

4. Axon Fleet 3 LTE Requirements. Axon Respond is only available and usable with a Fleet 3 system configured with LTE modem and service. Agency is responsible for providing LTE service for the modem. Coverage and availability of LTE service is subject to Agency’s LTE carrier.

5. Axon Respond Service Limitations. Agency acknowledges that LTE service is made available only within the operating range of the networks. Service may be temporarily refused, interrupted, or limited because of: (a) facilities limitations; (b) transmission limitations caused by atmospheric, terrain, other natural or artificial conditions adversely affecting transmission, weak batteries, system overcapacity, movement outside a service area or gaps in coverage in a service area, and other causes reasonably outside of the carrier’s control such as intentional or negligent acts of third parties that damage or impair the network or disrupt service; or (c) equipment modifications, upgrades, relocations, repairs, and other similar activities necessary for the proper or improved operation of service.

5.1. With regard to Axon Body 3, Partner networks are made available as-is and the carrier makes no warranties or representations as to the availability or quality of roaming service provided by carrier partners, and the carrier will not be liable in any capacity for any errors, outages, or failures of carrier partner networks. Agency expressly understands and agrees that it has no contractual relationship whatsoever with the underlying wireless service provider or its affiliates or contractors and Agency is not a third-party beneficiary of any agreement between Axon and the underlying carrier.

6. Termination. Upon termination of this Agreement, or if Agency stops paying for Axon Respond or bundles that include Axon Respond, Axon will end Axon Respond services, including any Axon-provided LTE service.

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Add-on Services Appendix
This Appendix applies if Axon Community Request, Axon Redaction Assistant, and/or Axon Performance are included on the Quote.

1. Subscription Term. If Agency purchases Axon Community Request, Axon Redaction Assistant, or Axon Performance as part of OSP 7 or OSP 10, the subscription begins on the later of the (1) start date of the OSP 7 or OSP 10 Term, or (2) date Axon provisions Axon Community Request Axon Redaction Assistant, or Axon Performance to Agency.

1.1. If Agency purchases Axon Community Request, Axon Redaction Assistant, or Axon Performance as a standalone, the subscription begins the later of the (1) date Axon provisions Axon Community Request, Axon Redaction Assistant, or Axon Performance to Agency, or (2) first day of the month following the Effective Date.

1.2. The subscription term will end upon the completion of the Axon Evidence Subscription associated with the addon.

2. Axon Community Request Storage. For Axon Community Request, Agency may store an unlimited amount of data submitted through the public portal ("Portal Content"), within Agency’s Axon Evidence instance. The post-termination provisions outlined in the Axon Cloud Services Terms of Use Appendix also apply to Portal Content.

3. Performance Auto-Tagging Data. In order to provide some features of Axon Performance to Agency, Axon will need to store call for service data from Agency’s CAD or RMS.

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Axon Auto-Transcribe Appendix
This Appendix applies if Axon Auto-Transcribe is included on the Quote.

1. Subscription Term. If Agency purchases Axon Auto-Transcribe as part of a bundle or Axon Cloud Services subscription, the subscription begins on the later of the (1) start date of the bundle or Axon Cloud Services license term, or (2) date Axon provisions Axon Auto-Transcribe to Agency. If Agency purchases Axon Auto-Transcribe minutes as a standalone, the subscription begins on the date Axon provisions Axon Auto-Transcribe to Agency.

1.1. If Agency cancels Auto-Transcribe services, any amounts owed by the Parties will be based on the amount of time passed under the annual subscription, rather than on the number of minutes used, regardless of usage.

2. Auto-Transcribe A-La-Carte Minutes. Upon Axon granting Agency a set number of minutes, Agency may utilize Axon Auto-Transcribe, subject to the number of minutes allowed on the Quote. Agency will not have the ability to roll over unused minutes to future Auto-Transcribe terms. Axon may charge Agency additional fees for exceeding the number of purchased minutes. Axon Auto-Transcribe minutes expire one year after being provisioned to Agency by Axon.

3. Axon Unlimited Transcribe. Upon Axon granting Agency an Unlimited Transcribe subscription to Axon AutoTranscribe, Agency may utilize Axon Auto-Transcribe with no limit on the number of minutes. Unlimited Transcribe includes automatic transcription of all Axon BWC and Axon Capture footage. With regard to Axon Interview Room, Axon Fleet, Axon Citizen, or third-party transcription, transcription must be requested on demand. Notwithstanding the foregoing, Axon may limit usage after 5,000 minutes per user per month for multiple months in a row. Axon will not bill for overages.

4. Warranty. Axon disclaims all warranties, express or implied, for Axon Auto-Transcribe.

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Axon Virtual Reality Content Terms of Use Appendix
If Virtual Reality is included on the Quote, this Appendix applies.

1. Term. The Quote will detail the products and license duration, as applicable, of the goods, services, and software, and contents thereof, provided by Axon to Agency related to virtual reality (collectively, "Virtual Reality Media").

2. Headsets. Agency may purchase additional virtual reality headsets from Axon. In the event Agency decides to purchase additional virtual reality headsets for use with Virtual Reality Media, Agency must purchase those headsets from Axon.

3. License Restrictions. All licenses will immediately terminate if Agency does not comply with any term of this Agreement. If Agency utilizes more users than stated in this Agreement, Agency must purchase additional Virtual Reality Media licenses from Axon. Agency may not use Virtual Reality Media for any purpose other than as expressly permitted by this Agreement. Agency may not:

3.1. modify, tamper with, repair, or otherwise create derivative works of Virtual Reality Media;

3.2. reverse engineer, disassemble, or decompile Virtual Reality Media or apply any process to derive the source code of Virtual Reality Media, or allow others to do the same;

3.3. copy Virtual Reality Media in whole or part, except as expressly permitted in this Agreement;

3.4. use trade secret information contained in Virtual Reality Media;

3.5. resell, rent, loan or sublicense Virtual Reality Media;

3.6. access Virtual Reality Media to build a competitive device or service or copy any features, functions, or graphics of Virtual Reality Media; or

3.7. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Virtual Reality Media or any copies of Virtual Reality Media.

4. Privacy. Agency’s use of the Virtual Reality Media is subject to the Axon Virtual Reality Privacy Policy, a current version of which is available at https://www.axon.com/axonvrprivacypolicy.

5. Termination. Axon may terminate Agency’s license immediately for Agency’s failure to comply with any of the terms in this Agreement.

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Axon Evidence Local Software Appendix
This Appendix applies if Axon Evidence Local is included on the Quote.

1. License. Axon owns all executable instructions, images, icons, sound, and text in Axon Evidence Local. All rights are reserved to Axon. Axon grants a non-exclusive, royalty-free, worldwide right and license to use Axon Evidence Local. "Use" means storing, loading, installing, or executing Axon Evidence Local exclusively for data communication with an Axon Device. Agency may use Axon Evidence Local in a networked environment on computers other than the computer it installs Axon Evidence Local on, so long as each execution of Axon Evidence Local is for data communication with an Axon Device. Agency may make copies of Axon Evidence Local for archival purposes only.

Axon shall retain all copyright, trademark, and proprietary notices in Axon Evidence Local on all copies or adaptations.

2. Term. The Quote will detail the duration of the Axon Evidence Local license, as well as any maintenance. The term will begin upon installation of Axon Evidence Local.

3. License Restrictions. All licenses will immediately terminate if Agency does not comply with any term of this Agreement. Agency may not use Axon Evidence Local for any purpose other than as expressly permitted by this Agreement. Agency may not:

3.1. modify, tamper with, repair, or otherwise create derivative works of Axon Evidence Local;

3.2. reverse engineer, disassemble, or decompile Axon Evidence Local or apply any process to derive the source code of Axon Evidence Local, or allow others to do the same;

3.3. access or use Axon Evidence Local to avoid incurring fees or exceeding usage limits or quotas;

3.4. copy Axon Evidence Local in whole or part, except as expressly permitted in this Agreement;

3.5. use trade secret information contained in Axon Evidence Local;

3.6. resell, rent, loan or sublicense Axon Evidence Local;

3.7. access Axon Evidence Local to build a competitive device or service or copy any features, functions, or graphics of Axon Evidence Local; or

3.8. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon or Axon’s licensors on or within Axon Evidence Local or any copies of Axon Evidence Local.

4. Support. Axon may make available updates and error corrections ("Updates") to Axon Evidence Local. Axon will provide Updates electronically via the Internet or media as determined by Axon. Agency is responsible for establishing and maintaining adequate access to the Internet to receive Updates. Agency is responsible for maintaining the computer equipment necessary to use Axon Evidence Local. Axon may provide technical support of a prior release/version of Axon Evidence Local for six (6) months from when Axon made the subsequent release/version available.

5. Termination. Axon may terminate Agency’s license immediately for Agency’s failure to comply with any of the terms in this Agreement. Upon termination, Axon may disable Agency’s right to login to Axon Evidence Local.

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Axon Application Programming Interface Appendix
This Appendix applies if Axon’s API Services are included on the Quote.

1. Definitions.

1.1. "API Client" means the software that acts as the interface between Agency’s computer and the server, which is already developed or to be developed by Agency.

1.2. "API Interface" means software implemented by Agency to configure Agency’s independent API Client Software to operate in conjunction with the API Service for Agency’s authorized Use.

1.3. "Axon Evidence Partner API, API or Axon API" (collectively "API Service") means Axon’s API which provides a programmatic means to access data in Agency’s Axon Evidence account or integrate Agency’s Axon Evidence account with other systems.

1.4. "Use" means any operation on Agency’s data enabled by the supported API functionality.

2. Purpose and License.

2.1. Agency may use API Service and data made available through API Service, in connection with an API Client developed by Agency. Axon may monitor Agency’s use of API Service to ensure quality, improve Axon devices and services, and verify compliance with this Agreement. Agency agrees to not interfere with such monitoring or obscure from Axon Agency’s use of API Service. Agency will not use API Service for commercial use.

2.2. Axon grants Agency a non-exclusive, non-transferable, non-sublicensable, worldwide, revocable right and license during the Term to use API Service, solely for Agency’s Use in connection with Agency’s API Client.

2.3. Axon reserves the right to set limitations on Agency’s use of the API Service, such as a quota on operations, to ensure stability and availability of Axon’s API. Axon will use reasonable efforts to accommodate use beyond the designated limits.

3. Configuration. Agency will work independently to configure Agency’s API Client with API Service for Agency’s applicable Use. Agency will be required to provide certain information (such as identification or contact details) as part of the registration. Registration information provided to Axon must be accurate. Agency will inform Axon promptly of any updates. Upon Agency’s registration, Axon will provide documentation outlining API Service information.

4. Agency Responsibilities. When using API Service, Agency and its end users may not:

4.1. use API Service in any way other than as expressly permitted under this Agreement;

4.2. use in any way that results in, or could result in, any security breach to Axon;

4.3. perform an action with the intent of introducing any viruses, worms, defect, Trojan horses, malware, or any items of a destructive nature to Axon Devices and Services;

4.4. interfere with, modify, disrupt or disable features or functionality of API Service or the servers or networks providing API Service;

4.5. reverse engineer, decompile, disassemble, or translate or attempt to extract the source code from API Service or any related software;

4.6. create an API Interface that functions substantially the same as API Service and offer it for use by third parties;

4.7. provide use of API Service on a service bureau, rental or managed services basis or permit other individuals or entities to create links to API Service;

4.8. frame or mirror API Service on any other server, or wireless or Internet-based device;

4.9. make available to a third-party, any token, key, password or other login credentials to API Service;

4.10. take any action or inaction resulting in illegal, unauthorized or improper purposes; or

4.11. disclose Axon’s API manual.

5. API Content. All content related to API Service, other than Agency Content or Agency’s API Client content, is considered Axon’s API Content, including:

5.1. the design, structure and naming of API Service fields in all responses and requests;

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5.2. the resources available within API Service for which Agency takes actions on, such as evidence, cases, users, or reports;

5.3. the structure of and relationship of API Service resources; and

5.4. the design of API Service, in any part or as a whole.

6. Prohibitions on API Content. Neither Agency nor its end users will use API content returned from the API Interface to:

6.1. scrape, build databases, or otherwise create permanent copies of such content, or keep cached copies longer than permitted by the cache header;

6.2. copy, translate, modify, create a derivative work of, sell, lease, lend, convey, distribute, publicly display, or sublicense to any third-party;

6.3. misrepresent the source or ownership; or

6.4. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices).

7. API Updates. Axon may update or modify the API Service from time to time ("API Update"). Agency is required to implement and use the most current version of API Service and to make any applicable changes to Agency’s API Client required as a result of such API Update. API Updates may adversely affect how Agency’s API Client access or communicate with API Service or the API Interface. Each API Client must contain means for Agency to update API Client to the most current version of API Service. Axon will provide support for one (1) year following the release of an API Update for all depreciated API Service versions.

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Advanced User Management Appendix
This Appendix applies if Axon Advanced User Management is included on the Quote.

1. Scope. Advanced User Management allows Agency to (a) utilize bulk user creation and management, (b) automate user creation and management through System for Cross-domain Identity Management ("SCIM"), and (c) automate group creation and management through SCIM.

2. Advanced User Management Configuration. Agency will work independently to configure Agency’s Advanced User Management for Agency’s applicable Use. Upon request, Axon will provide general guidance to Agency, including documentation that details the setup and configuration process.

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Axon Channel Services Appendix
This Appendix applies if Agency purchases Axon Channel Service, as set forth on the Quote.

1. Definitions.

1.1. "Axon Digital Evidence Management System" means Axon Evidence or Axon Evidence Local, as specified in the attached Channel Services Statement of Work.

1.2. "Active Channel" means a third-party system that is continuously communicating with an Axon Digital Evidence Management System.

1.3. "Inactive Channel" means a third-party system that will have a one-time communication to an Axon Digital Evidence Management System.

2. Scope. Agency currently has a third-party system or data repository from which Agency desires to share data with Axon Digital Evidence Management. Axon will facilitate the transfer of Agency’s third-party data into an Axon Digital Evidence Management System or the transfer of Agency data out of an Axon Digital Evidence Management System as defined in the Channel Services Statement of Work ("Channel Services SOW"). Channel Services will not delete any Agency Content. Agency is responsible for verifying all necessary data is migrated correctly and retained per Agency policy.

3. Changes. Axon is only responsible to perform the Services described in this Appendix and Channel Services SOW.

Any additional services are out of scope. The Parties must document scope changes in a written and signed change order. Changes may require an equitable adjustment in the charges or schedule.

4. Purpose and Use. Agency is responsible for verifying Agency has the right to share data from and provide access to third-party system as it relates to the Services described in this Appendix and the Channel Services SOW. For Active Channels, Agency is responsible for any changes to a third-party system that may affect the functionality of the channel service. Any additional work required for the continuation of the Service may require additional fees. An Axon Field Engineer may require access to Agency’s network and systems to perform the Services described in the Channel Services SOW. Agency is responsible for facilitating this access per all laws and policies applicable to Agency.

5. Project Management. Axon will assign a Project Manager to work closely with Agency’s project manager and project team members and will be responsible for completing the tasks required to meet all contract deliverables on time and budget.

6. Warranty. Axon warrants that it will perform the Channel Services in a good and workmanlike manner.

7. Monitoring. Axon may monitor Agency’s use of Channel Services to ensure quality, improve Axon devices and services, prepare invoices based on the total amount of data migrated, and verify compliance with this Agreement.

Agency agrees not to interfere with such monitoring or obscure from Axon Agency’s use of channel services.

8. Agency’s Responsibilities. Axon’s successful performance of the Channel Services requires Agency:

8.1. Make available its relevant systems for assessment by Axon (including making these systems available to Axon via remote access);

8.2. Provide access to the building facilities and where Axon is to perform the Channel Services, subject to safety and security restrictions imposed by the Agency (including providing security passes or other necessary documentation to Axon representatives performing the Channel Services permitting them to enter and exit Agency premises with laptop personal computers and any other materials needed to perform the Channel Services);

8.3. Provide all necessary infrastructure and software information (TCP/IP addresses, node names, and network configuration) for Axon to provide the Channel Services;

8.4. Ensure all appropriate data backups are performed;

8.5. Provide Axon with remote access to the Agency’s network and third-party systems when required for Axon to perform the Channel Services;

8.6. Notify Axon of any network or machine maintenance that may impact the performance of the Channel Services; and

8.7. Ensure the reasonable availability by phone or email of knowledgeable staff, personnel, system administrators,

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and operators to provide timely, accurate, complete, and up-to-date documentation and information to Axon (these contacts are to provide background information and clarification of information required to perform the Channel Services).

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VIEVU Data Migration Appendix
This Appendix applies if Agency purchases Migration services, as set forth on the Quote.

1. Scope. Agency currently has legacy data in the VIEVU solution from which Agency desires to move to Axon Evidence.

Axon will work with Agency to copy legacy data from the VIEVU solution into Axon Evidence ("Migration"). Before Migration, Agency and Axon will work together to develop a Statement of Work ("Migration SOW") to detail all deliverables and responsibilities. The Migration will require the availability of Agency resources. Such resources will be identified in the SOW. On-site support during Migration is not required. Upon Agency’s request, Axon will provide on-site support for an additional fee. Any request for on-site support will need to be pre-scheduled and is subject to Axon’s resource availability.

1.1. A small amount of unexposed data related to system information will not be migrated from the VIEVU solution to Axon Evidence. Upon request, some of this data can be manually exported before Migration and provided to Agency. The Migration SOW will provide further detail.

2. Changes. Axon is only responsible to perform the Services described in this Appendix and Migration SOW. Any additional services are out of scope. The Parties must document scope changes in a written and signed change order.

Changes may require an equitable adjustment in the charges or schedule.

3. Project Management. Axon will assign a Project Manager to work closely with Agency’s project manager and project team members and will be responsible for completing the tasks required to meet all contract deliverables on time and budget.

4. Downtime. There may be downtime during the Migration. The duration of the downtime will depend on the amount of data that Agency is migrating. Axon will work with Agency to minimize any downtime. Any VIEVU mobile application will need to be disabled upon Migration.

5. Functionality Changes. Due to device differences between the VIEVU solution and the Axon’s Axon Evidence solution, there may be functionality gaps that will not allow for all migrated data to be displayed the same way in the user interface after Migration.

6. Acceptance. Once the Migration is complete, Axon will notify Agency and provide an acceptance form. Agency is responsible for verifying that the scope of the project has been completed and all necessary data is migrated correctly and retained per Agency policy. Agency will have ninety (90) days to provide Axon acceptance that the Migration was successful, or Axon will deem the Migration accepted.

6.1. In the event Agency does not accept the Migration, Agency agrees to notify Axon within a reasonable time.

Agency also agrees to allow Axon a reasonable time to resolve any issue. In the event Agency does not provide Axon with a written rejection of the Migration during these ninety (90) days, Agency may be charged for additional monthly storage costs. After Agency provides acceptance of the Migration, Axon will delete all data from the VIEVU solution ninety (90) days after the Migration.

7. Post-Migration. After Migration, the VIEVU solution may not be supported and updates may not be provided. Axon may end of life the VIEVU solution in the future. If Agency elects to maintain data within the VIEVU solution, Axon will provide Agency ninety (90) days’ notice before ending support for the VIEVU solution.

8. Warranty. Axon warrants that it will perform the Migration in a good and workmanlike manner.

9. Monitoring. Axon may monitor Agency’s use of Migration to ensure quality, improve Axon Devices and Services, prepare invoices based on the total amount of data migrated, and verify compliance with this Agreement. Agency agrees not to interfere with such monitoring or obscure Agency’s use of Migration from Axon.

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10. Axon Technical Account Manager Appendix
This Appendix applies if Axon Support Engineer services are included on the Quote.

1. Axon Technical Account Manager Payment. Axon will invoice for Axon Technical Account Manager ("TAM") services, as outlined in the Quote, when the TAM commences work on-site at Agency.

2. Full-Time TAM Scope of Services.

2.1. A Full-Time TAM will work on-site four (4) days per week, unless an alternate schedule or reporting location is mutually agreed upon by Axon and Customer.

2.2. Agency’s Axon sales representative and Axon’s Agency Success team will work with Agency to define its support needs and ensure the Full-Time TAM has skills to align with those needs. There may be up to a six- (6-) month waiting period before the Full-Time TAM can work on-site, depending upon Agency’s needs and availability of a Full-Time TAM.

2.3. The purchase of Full-Time TAM Services includes two (2) complimentary Axon Accelerate tickets per year of the Agreement, so long as the TAM has started work at Agency, and Agency is current on all payments for the Full-Time TAM Service.

2.4. The Full-Time TAM Service options are listed below:

Ongoing System Set-up and Configuration
Assisting with assigning cameras and registering docks
Maintaining Agency’s Axon Evidence account
Connecting Agency to "Early Access" programs for new devices Account Maintenance
Conducting on-site training on new features and devices for Agency leadership team(s) Thoroughly documenting issues and workflows and suggesting new workflows to improve the effectiveness of the Axon program
Conducting weekly meetings to cover current issues and program status Data Analysis
Providing on-demand Axon usage data to identify trends and insights for improving daily workflows Comparing Agency's Axon usage and trends to peers to establish best practices Proactively monitoring the health of Axon equipment and coordinating returns when needed Direct Support
Providing on-site, Tier 1 and Tier 2 (as defined in Axon's Service Level Agreement) technical support for Axon Devices
Proactively monitoring the health of Axon equipment
Creating and monitoring RMAs on-site
Providing Axon app support
Monitoring and testing new firmware and workflows before they are released to Agency’s production environment Agency Advocacy
Coordinating bi-annual voice of customer meetings with Axon’s Device Management team Recording and tracking Agency feature requests and major bugs

3. Regional TAM Scope of Services

3.1. A Regional TAM will work on-site for three (3) consecutive days per quarter. Agency must schedule the onsite days at least two (2) weeks in advance. The Regional TAM will also be available by phone and email during regular business hours up to eight (8) hours per week.

3.2. There may be up to a six- (6-) month waiting period before Axon assigns a Regional TAM to Agency, depending upon the availability of a Regional TAM.

3.3. The purchase of Regional TAM Services includes two (2) complimentary Axon Accelerate tickets per year of the Agreement, so long as the TAM has started work at Agency and Agency is current on all payments for the Regional TAM Service.

3.4. The Regional TAM service options are listed below:

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Account Maintenance
Conducting remote training on new features and devices for Agency’s leadership Thoroughly documenting issues and workflows and suggesting new workflows to improve the effectiveness of the Axon program
Conducting weekly conference calls to cover current issues and program status Visiting Agency quarterly (up to 3 consecutive days) to perform a quarterly business review, discuss Agency's goals for your Axon program, and continue to ensure a successful deployment of Axon Devices Direct Support
Providing remote, Tier 1 and Tier 2 (As defined Axon's Service Level Agreement) technical support for Axon Devices
Creating and monitoring RMAs remotely
Data Analysis
Providing quarterly Axon usage data to identify trends and program efficiency opportunities Comparing an Agency's Axon usage and trends to peers to establish best practices Proactively monitoring the health of Axon equipment and coordinating returns when needed Agency Advocacy
Coordinating bi-yearly Voice of Agency meetings with Device Management team Recording and tracking Agency feature requests and major bugs

4. Out of Scope Services. The TAM is responsible to perform only the Services described in this Appendix. Any additional Services discussed or implied that are not defined explicitly in this Appendix will be considered out of the scope.

5. TAM Leave Time. The TAM will be allowed up seven (7) days of sick leave and up to fifteen (15) days of vacation time per each calendar year. The TAM will work with Agency to coordinate any time off and will provide Agency with at least two (2) weeks’ notice before utilizing any vacation days.

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Axon Investigate Appendix
If the Quote includes Axon's On Prem Video Suite known as Axon Investigate or Third Party Video Support License, the following appendix shall apply.

1. License Grant. Subject to the terms and conditions specified below and upon payment of the applicable fees set forth in the Quote, Axon grants to Agency a nonexclusive, nontransferable license to install, use, and display the Axon Investigate software ("Software") solely for its own internal use only and for no other purpose, for the duration of subscription term set forth in the Quote. This Agreement does not grant Agency any right to enhancements or updates, but if such are made available to Agency and obtained by Agency they shall become part of the Software and governed by the terms of this Agreement.

2. Third-Party Licenses. Axon licenses several third-party codecs and applications that are integrated into the Software. Users with an active support contract with Axon are granted access to these additional features. By accepting this agreement, Agency agrees to and understands that an active support contract is required for all of the following features: DNxHD output formats, decoding files via the "fast indexing" method, proprietary file metadata, telephone and email support, and all future updates to the software. If Agency terminates the annual support contract with Axon, the features listed above will be disabled within the Software. It is recommended that users remain on an active support contract to maintain the full functionality of the Software.

3. Restrictions on Use. Agency may not permit any other person to use the Software unless such use is in accordance with the terms of this Agreement. Agency may not modify, translate, reverse engineer, reverse compile, decompile, disassemble or create derivative works with respect to the Software, except to the extent applicable laws specifically prohibit such restrictions. Agency may not rent, lease, sublicense, grant a security interest in or otherwise transfer Agency’s rights to or to use the Software. Any rights not granted are reserved to Axon.

4. Term. For purchased perpetual Licenses only—excluding Licenses leased for a pre-determined period, evaluation licenses, companion licenses, as well as temporary licenses--the license shall be perpetual unless Agency fails to observe any of its terms, in which case it shall terminate immediately, and without additional prior notice. The terms of Paragraphs 1, 2, 3, 5, 6, 8 and 9 shall survive termination of this Agreement. For licenses leased for a predetermined period, for evaluation licenses, companion licenses, as well as temporary licenses, the license is granted for a period beginning at the installation date and for the duration of the evaluation period or temporary period as agreed between Axon and Agency.

5. Title. Axon and its licensors shall have sole and exclusive ownership of all right, title, and interest in and to the Software and all changes, modifications, and enhancements thereof (including ownership of all trade secrets and copyrights pertaining thereto), regardless of the form or media in which the original or copies may exist, subject only to the rights and privileges expressly granted by Axon. This Agreement does not provide Agency with title or ownership of the Software, but only a right of limited use.

6. Copies. The Software is copyrighted under the laws of the United States and international treaty provisions. Agency may not copy the Software except for backup or archival purposes, and all such copies shall contain all Axon’s notices regarding proprietary rights as contained in the Software as originally provided to Agency. If Agency receives one copy electronically and another copy on media, the copy on media may be used only for archival purposes and this license does not authorize Agency to use the copy of media on an additional server.

7. Actions Required Upon Termination. Upon termination of the license associated with this Agreement, Agency agrees to destroy all copies of the Software and other text and/or graphical documentation, whether in electronic or printed format, that describe the features, functions and operation of the Software that are provided by Axon to Agency ("Software Documentation") or return such copies to Axon. Regarding any copies of media containing regular backups of Agency's computer or computer system, Agency agrees not to access such media for the purpose of recovering the Software or online Software Documentation.

8. Export Controls. None of the Software, Software Documentation or underlying information may be downloaded or otherwise exported, directly or indirectly, without the prior written consent, if required, of the office of Export Administration of the United States, Department of Commerce, nor to any country to which the U.S. has embargoed goods, to any person on the U.S. Treasury Department’s list of Specially Designated Nations, or the U.S. Department of Commerce’s Table of Denials.

9. U.S. Government Restricted Rights. The Software and Software Documentation are Commercial Computer Software provided with Restricted Rights under Federal Acquisition Regulations and agency supplements to them.

Use, duplication or disclosure by the U.S. Government is subject to restrictions as set forth in subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer Software clause at DFAR 255.227-7013 et. Seq. or 252.211-7015, or

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subparagraphs (a) through (d) of the Commercial Computer Software Restricted Rights at FAR 52.227-19, as applicable, or similar clauses in the NASA FAR Supplement. Contractor/manufacturer is Axon Enterprise, Inc., 17800 North 85th Street, Scottsdale, Arizona 85255.

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My90 Terms of Use Appendix
Definitions.

1.1. "My90" means Axon’s proprietary platform and methodology to obtain and analyze feedback, and other related offerings, including, without limitation, interactions between My90 and Axon products.

1.2. "Recipient Contact Information" means contact information, as applicable, including phone number or email address (if available) of the individual whom Agency would like to obtain feedback.

1.3. "Agency Data" means

1.3.1."My90 Agency Content" which means data, including Recipient Contact Information, provided to My90 directly by Agency or at their direction, or by permitting My90 to access or connect to an information system or similar technology. My90 Agency Content does not include My90 NonContent Data.

1.3.2."My90 Non-Content Data" which means data, configuration, and usage information about Agency's My90 tenant, and client software, users, and survey recipients that is Processed (as defined in Section 1.6 of this Appendix) when using My90 or responding to a My90 Survey. My90 NonContent Data includes data about users and survey recipients captured during account management and customer support activities. My90 Non-Content Data does not include My90 Agency Content.

1.3.3."Survey Response" which means survey recipients' response to My90 Survey.

1.4. "My90 Data" means

1.4.1."My90 Survey" which means surveys, material(s) or content(s) made available by Axon to Agency and survey recipients within My90.

1.4.2."Aggregated Survey Response" which means Survey Response that has been de-identified and aggregated or transformed so that it is no longer reasonably capable of being associated with, or could reasonably be linked directly or indirectly to, a particular individual.

1.5. "Personal Data" means any information relating to an identified or identifiable natural person. An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural, or social identity of that natural person.

1.6. "Processing" means any operation or set of operations which is performed on data or on sets of data, whether or not by automated means, such as collection, recording, organization, structuring, storage, adaptation or alteration, retrieval, consultation, use, disclosure by transmission, dissemination or otherwise making available, alignment or combination, restriction, erasure, or destruction.

1.7. "Sensitive Personal Data" means Personal Data that reveals an individual’s health, racial or ethnic origin, sexual orientation, disability, religious or philosophical beliefs, or trade union membership.

2. Access. Upon Axon granting Agency a subscription to My90, Agency may access and use My90 to store and manage My90 Agency Content, and applicable My90 Surveys and Aggregated Survey Responses. This Appendix is subject to the Terms and Conditions of Axon’s Master Service and Purchasing Agreement or in the event you and Axon have entered into a prior agreement to govern all future purchases, that agreement shall govern.

3. IP address. Axon will not store survey respondents’ IP address.

4. Agency Owns My90 Agency Content. Agency controls or owns all right, title, and interest in My90 Agency Content. Except as outlined herein, Axon obtains no interest in My90 Agency Content, and My90 Agency Content is not Axon’s business records. Except as set forth in this Agreement, Agency is responsible for uploading, sharing, managing, and deleting My90 Agency Content. Axon will only have access to My90 Agency Content for the limited purposes set forth herein. Agency agrees to allow Axon access to My90 Agency Content to (a) perform troubleshooting, maintenance, or diagnostic screenings; and (b) enforce this Agreement or policies governing use of My90 and other Axon products.

5. Details of the Processing. The nature and purpose of the Processing under this Appendix are further specified

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in Schedule 1 Details of the Processing, to this Appendix.

6. Security. Axon will implement commercially reasonable and appropriate measures to secure Agency Data against accidental or unlawful loss, access, or disclosure. Axon will maintain a comprehensive information security program to protect Agency Data including logical, physical access, vulnerability, risk, and configuration management; incident monitoring and response; security education; and data protection. Axon will not treat Agency Data in accordance with FBI CJIS Security Policy requirements and does not agree to the CJIS Security Addendum for this engagement or any other security or privacy related commitments that have been established between Axon and Agency, such as ISO 27001 certification or SOC 2 Reporting.

7. Privacy. Agency use of My90 is subject to the My90 Privacy Policy, a current version of which is available at https://www.axon.com/legal/my90privacypolicy. Agency agrees to allow Axon access to My90 Non-Content Data from Agency to (a) perform troubleshooting, maintenance, or diagnostic screenings; (b) provide, develop, improve, and support current and future Axon products including My90 and related services; and (c) enforce this Agreement or policies governing the use of My90 or other Axon products.

8. Location of Storage. Axon may transfer Agency Data to third-party subcontractors for Processing. Axon will determine the locations for Processing of Agency Data. For all Agency, Axon will Process and store Agency Data within the United States. Ownership of My90 Agency Content remains with Agency.

9. Required Disclosures. Axon will not disclose Agency Data that Agency shares with Axon except as compelled by a court or administrative body or required by any law or regulation. Axon will notify Agency if any disclosure request is received for Agency Data so Agency may file an objection with the court or administrative body, unless prohibited by law.

10. Data Sharing. Axon may share data only with entities that control or are controlled by or under common control of Axon, and as described below:

10.1. Axon may share Agency Data with third parties it employs to perform tasks on Axon’s behalf to provide products or services to Customer.

10.2. Axon may share Aggregated Survey Response with third parties, such as other Axon customers, local city agencies, private companies, or members of the public that are seeking a way to collect analysis on general policing and community trends. Aggregated Survey Response will not be reasonably capable of being associated with or reasonably be linked directly or indirectly to a particular individual.

11. License and Intellectual Property. Agency grants Axon, its affiliates, and assignees the irrevocable, perpetual, fully paid, royalty-free, and worldwide right and license to use Agency Data for internal use including but not limited to analysis and creation of derivatives. Axon may not release Agency Data to any third party under this right that is not aggregated and de-identified. Agency acknowledges that Agency will have no intellectual property right in any media, good or service developed or improved by Axon. Agency acknowledges that Axon may make any lawful use of My90 Data and any derivative of Agency Data including, without limitation, the right to monetize, redistribute, make modification of, and make derivatives of the surveys, survey responses and associated data, and Agency will have no intellectual property right in any good, service, media, or other product that uses My90 Data.

12. Agency Use of Aggregated Survey Response. Axon will make available to Agency Aggregated Survey Response and rights to use for any Agency purpose.

13. Data Subject Rights. Taking into account the nature of the Processing, Axon shall assist Agency by appropriate technical and organizational measures, insofar as this is reasonable, for the fulfilment of Agency's obligation to respond to a Data Subject Request regarding any Personal Data contained within My90 Agency Content. If in regard to My90 Agency Content, Axon receives a Data Subject Request from Agency's data subject to exercise one or more of its rights under applicable Data Protection Law, Axon will redirect the data subject within seventytwo (72) hours, to make its request directly to Agency. Agency will be responsible for responding to any such request.

14. Assistance with Requests Related to My90 Agency Content. With regard to the processing of My90 Agency Content, Axon shall, if not prohibited by applicable law, notify Agency without delay after receipt, if Axon: (a) receives a request for information from the Supervisory Authority or any other competent authority regarding My90 Agency Content; (b) receives a complaint or request from a third party regarding the obligations of Agency or Axon under applicable Data Protection Law; or (c) receives any other communication which directly or indirectly pertains to My90 Agency Content or the Processing or protection of My90 Agency Content. Axon shall not respond to such requests, complaints, or communications, unless Agency has given Axon written instructions to

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that effect or if such is required under a statutory provision. In the latter case, prior to responding to the request, Axon shall notify Agency of the relevant statutory provision and Axon shall limit its response to what is necessary to comply with the request.

15. Axon Evidence Partner Sharing. If Axon Evidence partner sharing is used to share My90 Agency Content, Agency will manage the data sharing partnership with Axon and access to allow only for authorized data sharing with Axon. Agency acknowledges that any applicable audit trail on the original source data will not include activities and processing performed against the instances, copies or clips that has been shared with Axon. Agency also acknowledges that the retention policy from the original source data is not applied to any data shared with Axon.

Except as provided herein, data shared with Axon may be retained indefinitely by Axon.

16. Data Retention. Phone numbers provided to Axon directly by Agency or at their direction, or by permitting My90 to access or connect to an information system or similar technology will be retained for twenty-four (24) hours.

Axon will not delete Aggregated Survey Response for four (4) years following termination of this Agreement. There will be no functionality of My90 during these four (4) years other than the ability to submit a request to retrieve Aggregated Survey Response. Axon has no obligation to maintain or provide Aggregated Survey Response after these four years and may thereafter, unless legally prohibited, delete all Aggregated Survey Response.

17. Termination. Termination of an My90 Agreement will not result in the removal or modification of previously shared My90 Agency Content or the potential monetization of Survey Response and Aggregated Survey Response.

18. Managing Data Shared. Agency is responsible for:

18.1. Ensuring My90 Agency Content is appropriate for use in My90. This includes, prior to sharing: (a) applying any and all required redactions, clipping, removal of metadata, logs, etc. and (b) coordination with applicable public disclosure officers and related legal teams;

18.2. Ensuring that only My90 Agency Content that is authorized to be shared for the purposes outlined is shared with Axon. Agency will periodically monitor or audit this shared data;

18.3. Using an appropriately secure data transfer mechanism to provide My90 Agency Content to Axon;

18.4. Immediately notifying Axon if My90 Agency Content that is not authorized for sharing has been shared.

Axon may not be able to immediately retrieve or locate all instances, copies or clips of My90 Agency Content in the event Agency requests to un-share previously shared My90 Agency Content;

19. Prior to enrollment in My90. Prior to enrolling in My90, Agency will:

19.1. determine how to use My90 in accordance with applicable laws and regulations including but not limited to consents, use of info or other legal considerations;

19.2. develop a set of default qualification criteria of what My90 Agency Content may be shared with Axon; and

19.3. assign responsibilities for managing what My90 Agency Content is shared with Axon and educate users on what data may or not be shared with Axon.

20. Agency Responsibilities. Agency is responsible for:

20.1. ensuring no My90 Agency Content or Agency end user’s use of My90 Agency Content or My90 violates this Agreement or applicable laws;

20.2. providing, and will continue to provide, all notices and has obtained, and will continue to obtain, all consents and rights necessary under applicable laws for Axon to process Agency Data in accordance with this Agreement; and

20.3. maintaining necessary computer equipment and Internet connections for use of My90. If Agency becomes aware of any violation of this Agreement by an end user, Agency will immediately terminate that end user’s access to My90. Agency will also maintain the security of end usernames and passwords and security and access by end users to My90 Agency Content. Agency is responsible for ensuring the configuration and utilization of My90 meets applicable Agency regulations and standards. Agency may not sell, transfer, or sublicense access to any other entity or person. Agency shall contact Axon immediately if an unauthorized party may be using Agency's account or My90 Agency Content or if account information is lost or stolen.

21. Suspension. Axon may temporarily suspend Agency's or any end user’s right to access or use any portion or all of My90 immediately upon notice, if Agency or end user’s use of or registration for My90 may (a) pose a security

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risk to Axon products including My90, or any third-party; (b) adversely impact My90, the systems, or content of any other customer; (c) subject Axon, Axon’s affiliates, or any third-party to liability; or (d) be fraudulent. Agency remains responsible for all fees, if applicable, incurred through suspension. Axon will not delete My90 Agency Content or Aggregated Survey Response because of suspension, except as specified in this Agreement.

22. My90 Restrictions. Agency and Agency end users (including employees, contractors, agents, officers, volunteers, and directors), may not, or may not attempt to:

22.1. copy, modify, tamper with, repair, or create derivative works of any part of My90;

22.2. reverse engineer, disassemble, or decompile My90 or apply any process to derive any source code included in My90, or allow others to do the same;

22.3. access or use My90 with the intent to gain unauthorized access, avoid incurring fees or exceeding usage limits or quotas;

22.4. use trade secret information contained in My90, except as expressly permitted in this Agreement;

22.5. access My90 to build a competitive product or service or copy any features, functions, or graphics of My90;

22.6. remove, alter, or obscure any confidentiality or proprietary rights notices (including copyright and trademark notices) of Axon’s or Axon’s licensors on or within My90; or

22.7. use My90 to store or transmit infringing, libelous, or other unlawful or tortious material; to store or transmit material in violation of third-party privacy rights; or to store or transmit malicious code.

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Schedule 1- Details of the Processing

1. Nature and Purpose of the Processing. To help Agency obtain feedback from individuals, such as members of their community, staff, or officers. Features of My90 may include:

1.1. Survey Tool where Agency may create, distribute, and analyze feedback from individuals it designates.

Agency may designate members of the community, staff or officers from whom they would like to obtain feedback;

1.2. Creation of custom forms for surveys. Agency may select questions from a list of pre-drafted questions or create their own;

1.3. Distribution of survey via multiple distribution channels such as text message;

1.4. Ability to access and analyze Survey Response. Axon may also provide Agency Aggregated Survey Responses which contain analysis and insights from the Survey Response;

1.5. Direct integrations into information systems including Computer Aided Dispatch ("CAD"). This will enable Agency to share contact information easily and quickly with Axon of any individuals from whom it wishes to obtain feedback, enabling Axon to communicate directly with these individuals;

1.6. Data Dashboard Beta Test ("Data Dashboard") where Survey Response and Aggregated Survey Response will be displayed for Agency use. Agency will be able to analyze, interpret, and share results of the Survey Response. My90 may provide beta versions of the Data Dashboard that are specifically designed for Agency to test before they are publicly available;

1.7. Survey Responses will be aggregated and de-identified and may be subsequently distributed and disclosed through various mediums to: (1) Agency; (2) other Axon Agency; (3) private companies; and (4) members of the public. The purpose of disclosure is to provide ongoing insights and comparisons on general policing and community trends. Prior to disclosing this information, Axon will ensure that the Survey Response has been de-identified and aggregated or transformed so that it is no longer reasonably capable of being associated with, or could reasonably be linked directly or indirectly to a particular individual; and

1.8. Provide services and materials to engage Agency stakeholders, market the partnership to the public, and facilitate training.

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Axon Event Offer Appendix
If the Agreement includes the provision of, or Axon otherwise offers, ticket(s), travel and/or accommodation for select events hosted by Axon (“Axon Event”), the following shall apply:

10. General. Subject to the terms and conditions specified below and those in the Agreement, Axon may provide Agency with one or more offers to fund Axon Event ticket(s), travel and/or accommodation for Agency-selected employee(s) to attend one or more Axon Events. By entering into the Agreement, Agency warrants that it is appropriate and permissible for Agency to receive the referenced Axon Event offer(s) based on Agency’s understanding of the terms and conditions outlined in this Axon Event Offer Appendix.

11. Attendee/Employee Selection. Agency shall have sole and absolute discretion to select the Agency employee(s) eligible to receive the ticket(s), travel and/or accommodation that is the subject of any Axon Event offer(s).

12. Compliance. It is the intent of Axon that any and all Axon Event offers comply with all applicable laws, regulations and ethics rules regarding contributions, including gifts and donations. Axon’s provision of ticket(s), travel and/or accommodation for the applicable Axon Event to Agency is intended for the use and benefit of Agency in furtherance of its goals, and not the personal use or benefit of any official or employee of Agency. Axon makes this offer without seeking promises or favoritism for Axon in any bidding arrangements. Further, no exclusivity will be expected by either party in consideration for the offer. Axon makes the offer with the understanding that it will not, as a result of such offer, be prohibited from any procurement opportunities or be subject to any reporting requirements. If Agency’s local jurisdiction requires Agency to report or disclose the fair market value of the benefits provided by Axon, Agency shall promptly contact Axon to obtain such information, and Axon shall provide the information necessary to facilitate Agency's compliance with such reporting requirements.

13. Assignability. Agency may not sell, transfer, or assign Axon Event ticket(s), travel and/or accommodation provided under the Agreement.

14. Availability. The provision of all offers of Axon Event ticket(s), travel and/or accommodation is subject to availability of funds and resources. Axon has no obligation to provide Axon Event ticket(s), travel and/or accommodation.

15. Revocation of Offer. Axon reserves the right at any time to rescind the offer of Axon Event ticket(s), travel and/or accommodation to Agency if Agency or its selected employees fail to meet the prescribed conditions or if changes in circumstances render the provision of such benefits impractical, inadvisable, or in violation of any applicable laws, regulations, and ethics rules regarding contributions, including gifts and donations.

PREPARED BY: Erin Walters, Associate Planner and
Jocelyn Shoopman, Associate Planner
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and the Community Development Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6872 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 12/19/2023
ITEM NO: 15
DATE: December 14, 2023
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Review and Discuss the Draft Revised 2023-2031 Housing Element. Location:

Town-Wide. General Plan Amendment Application GP-22-003.

RECOMMENDATION:

Review and discuss the Draft Revised 2023-2031 Housing Element (November 2023).

EXECUTIVE SUMMARY:

The Town of Los Gatos has prepared a revised update to the Housing Element of the General Plan to affirmatively further fair housing and accommodate the 1,993-unit Regional Housing Needs Allocation (RHNA) for the 2023-2031 Housing Element cycle. The content of the Draft Revised 2023-2031 Housing Element is structured for further consistency with the requirements set forth in State law.

In addition to responding to requirements of State law, the Housing Element also demonstrates the Town of Los Gatos’ strategy to meet the Town’s locally determined housing needs, and that these needs are addressed through policies and programs outlined within the Housing Element.

Public review and input have been a critical component of this 6th cycle Housing Element update. A copy of the Draft Revised 2023-2031 Housing Element (November 2023) (Attachment 1), as submitted to the Department of Housing and Community Development (HCD) on November 28, 2023, is available on the Town’s Housing Element website:
www.losgatosca.govHousingElement.

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SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: December 14, 2023
BACKGROUND:

On October 2, 2023, after the seven-day review period, the Town submitted the Draft Revised Housing Element (September 2023) in response to the May 30, 2023 California Department of Housing and Community Development (HCD) findings/comment letter to HCD for review. The documents submitted to HCD can be viewed on the Housing Element update website at:
www.losgatosca.gov/HousingElement.

On November 7, 2023, staff and the Housing Element consultant met with the Town’s HCD reviewer, received preliminary feedback, and was subsequently provided with a Draft Preliminary Review Matrix on the Draft Revised Housing Element submitted to HCD on October 2, 2023.

On November 15, 2023, the Planning Commission reviewed HCD’s Draft Preliminary Review Matrix along with staff’s draft responses, asked questions of staff and the Housing Element consultant, received verbal public comment, and continued the item to a date certain of November 29, 2023 for a special meeting to continue the public hearing for any additional public comment, deliberation, and a recommendation (Attachments 4 through 6).

On November 16, 2023, the Draft Revised Housing Element (November 2023) with modifications in response to HCD’s Draft Preliminary Review Matrix received by the Town on November 7, 2023 was made available to the public for a seven-day review as required by Assembly Bill 215 starting on November 16, 2023 and ending on November 27, 2023.

On November 28, 2023, the Town resubmitted the Draft Revised Housing Element (November 2023) with modifications in response to HCD’s Draft Preliminary Review Matrix received by the Town on November 7, 2023 to HCD for review and comment. The documents submitted to HCD can be viewed on the Housing Element update website at:
www.losgatosca.gov/HousingElement.

On November 29, 2023, the Planning Commission made a recommendation to the Town Council to adopt the Draft Revised Housing Element (November 2023) (Attachments 7 through 10). See Discussion below.

On December 1, 2023, the Town received HCD’s findings/comment letter (Attachment 11) on the Town’s Draft Revised Housing Element (November 2023) as submitted to HCD on October 2, 2023, along with the modifications submitted on November 28, 2023.

The primary purpose of this agenda item is for Town Council to review and discuss the Draft Revised Housing Element (November 2023) (Attachment 1) with the Environmental Analysis (Attachment 2) in light of the HCD findings and comment letter received by the Town on December 1, 2023 (Attachment 11).

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SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: December 14, 2023
DISCUSSION:

A comprehensive list of the modifications that were made to the Draft Revised Housing Element (November 2023), based on the HCD Draft Preliminary Review Matrix provided on November 7, 2023, is provided in Attachment 3 and includes modifications to the Affirmatively Furthering Fair Housing (AFFH) analysis, refinement of the metrics, timelines, and language to the Implementation Programs, and a reduction in the total capacity of the Sites Inventory as detailed in Table 10-3 (Attachment 1).

A. Planning Commission
On November 15, 2023, the Planning Commission reviewed HCD’s preliminary comments and staff’s responses (Attachments 4 through 6), asked questions of staff and the Housing Element consultant, received verbal public comment, and continued the item to a date certain of November 29, 2023 for a special meeting to continue the public hearing for any additional public comment, deliberation, and a recommendation.

On November 29, 2023, the Planning Commission received and considered public comments on the Draft Revised Housing Element (November 2023) (Attachments 7 through 9). The Planning Commission found that the Draft Revised Housing Element (November 2023) was in substantial compliance with State law (see verbatim minutes in Attachment 10). The majority of the Planning Commission recommended that the Town Council adopt the Draft Revised Housing Element (November 2023) (Attachment 1).

B. HCD Communications
On December 1, 2023, the Town received HCD’s findings/comment letter on the Town’s Draft Revised Housing Element (November 2023), as submitted to HCD on October 2, 2023, along with the modifications submitted on November 28,2023 (Attachment 11). Town staff and the Housing Element consultant continue to work on responses to the HCD comment letter, with a partial interim working draft response table included in Attachment 14.

Town staff and the Housing Element consultant met with the Town’s HCD reviewer and the HCD Senior Program Manager, Paul McDougall on December 13, 2023 and received feedback on the following topics:
 Additional discussion of income and race at a local level as part of the Affirmatively Furthering Fair Housing analysis;
 Additional actions specific to promoting housing mobility;  Additional discussion and a potential modification to the maximum building height within the Housing Element Overlay Zone (HEOZ) for General Plan land use designations with a density range of 30 to 40 dwelling units per acre;

PAGE 4 OF 6
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: December 14, 2023
DISCUSSION (continued):
 Refinement of the definition of a mixed-use project within the HEOZ Ordinance;  Refinement of the language of Implementation Program AA to include a defined action; and
 Additional evaluation of the Town’s guest parking requirements for multi-family and mixed-use projects.

Additionally, staff discussed the actions taken by the Town Council at the meeting of December 5, 2023, and received feedback that modifications to the Story Pole Policy does seem to address the intent of HCD’s December 1, 2023 comment to modify the Story Pole Policy with cost effective measures.

C. Next Steps
This agenda item provides the Town Council an opportunity to discuss the Housing Element, HCD letter, and related matters. The Housing Element consultant intends to join remotely to answer the Council’s questions.

Town staff expects to provide additional revisions to the Draft Revised Housing Element to the Housing Element Advisory Board (HEAB) in mid-January for their review and consideration prior to a resubmittal to HCD. As required by AB 215, revisions to the Draft Revised Housing Element must be made available to the public for a seven-day review period prior to a formal resubmittal to HCD.

Based on HCD’s subsequent review, it is possible that additional revisions may be needed before HCD would certify the Housing Element. This means that Planning Commission and Town Council hearings for adoption of a Draft Revised Housing Element would need to be conducted.

A tentative schedule, based on the items described above, but subject to change is:
 HEAB meeting on January 18, 2024;
 Seven-day review period January 19 through 26, 2024*;  Submittal to HCD on January 30, 2024;
 Deadline for comment letter from HCD on March 30, 2024;  Planning Commission hearing in April if no further revisions required by HCD; and  Town Council Hearing in May.
*If a draft of proposed changes is completed in early January, then a seven-day review period may be initiated prior to the HEAB meeting. If the HEAB recommends additional changes, then the seven-day review period would be restarted prior to submittal to HCD.

PAGE 5 OF 6
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: December 14, 2023
CONCLUSION:

The HCD findings and comment letter, received by the Town on December 1, 2023, requested additional changes be made before HCD will be prepared to certify the Housing Element. As a result, staff recommends that additional Planning Commission and Town Council hearings for adoption of a Draft Revised Housing Element be conducted at a future date, and that the Town Council review and discuss the Draft Revised Housing Element (November 2023) given HCD’s findings and comment letter and refer the item back to the Housing Element Advisory Board for additional modifications.

ALTERNATIVES:

Alternatively, the Council may:

1. Continue this item to a date certain with specific direction to staff;

2. Refer the item back to the Planning Commission with specific direction;

3. Adopt a Resolution (Attachment 13) to adopt the Draft 2023-2031 Housing Element (November 2023); or

4. Recommend adoption with modifications.

PUBLIC COMMENTS:

Public comments received between 11:01 a.m., Wednesday, November 29, 2023, and 11:00 a.m., Thursday, December 14, 2023, are included as Attachment 15.

COORDINATION:

The Community Development Department coordinated with the offices of the Town Attorney and Town Manager in the preparation of this report.

ENVIRONMENTAL ASSESSMENT:

An Environmental Analysis (Attachment 2) was prepared for the Housing Element update. All potentially significant effects have been analyzed adequately in the Town of Los Gatos 2040 General Plan Environmental Impact Report (EIR), pursuant to applicable standards including CEQA Guidelines Section 15168(c)2, because the Housing Element update is consistent with the growth projections evaluated in the General Plan EIR.

PAGE 6 OF 6
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: December 14, 2023
ATTACHMENTS:

Received with this Staff Report:

1. Draft Revised Housing Element (November 2023), Track Change Copy

2. Environmental Analysis

3. Response Memorandum to the HCD Draft Preliminary Review Matrix

4. November 15, 2023, Planning Commission Staff Report with Exhibits 1-2

5. November 15, 2023, Planning Commission Addendum Report with Exhibit 3

6. November 15, 2023, Planning Commission Verbatim Minutes

7. November 29, 2023, Planning Commission Staff Report with Exhibits 4

8. November 29, 2023, Planning Commission Addendum Report with Exhibit 5-9

9. November 29, 2023, Planning Commission Desk Item Report with Exhibits 10-12

10. November 29, 2023, Planning Commission Verbatim Minutes

11. December 1, 2023, HCD’s Findings Comment Letter

12. Public Comments Received by HCD

13. Draft Resolution with Exhibit 1

14. Partial Interim Working Draft Response Table

15. Public Comments Received Between 11:01 a.m., Wednesday, November 29, 2023, and 11:00 a.m., Thursday, December 14, 2023

Town of Los Gatos 6th Cycle
2023-2031 Housing Element Update
HCD Draft Revised Draft
November 2023 September 2023 March 2023
ATTACHMENT 1 Page 575
This document was produced on recycled paper.

HCD DRAFT REVISED DRAFT

TOWN OF LOS GATOS
6 TH CYCLE 2023-2031 HOUSING ELEMENT
NO V E MB E R 2023SE P TEM B ER 2023 MAR CH 2023

PREPARED BY
Town of Los Gatos
Community Development Department
110 E. Main Street
Los Gatos, CaliforniaCA 95030
Tel 408.354.6872
Veronica Tam and Associates, Inc.
107 S. Fair Oaks Avenue, Suite 212
Pasadena, California
Tel 626.304.0440
EMC Planning Group Inc.
601 Abrego Street
Monterey, CA 93940
Tel 831.649.1799
Fax 831.649.8399
www.emcplanning.com
Root Policy Research
6740 East Colfax Avenue
Denver, Colorado 80220
Tel 970-880-1415
www.rootpolicy.com

Table of Contents
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element i

10. Housing Element ......................................................................................................... 10-1

10.1 Introduction .............................................................................................................. 10-1

10.1.1 California Housing Crisis .................................................................................. 10-2

10.1.2 Regional Housing Needs Assessment. .............................................................. 10-2

10.1.3 Affirmatively Furthering Fair Housing ............................................................. 10-3

10.1.4 Overview of Planning and Legislative Efforts .................................................... 10-8

10.1.5 Public Participation ....................................................................................... 10-10

10.1.6 Public Comment ............................................................................................ 10-16

10.2 Overview of Housing Needs and Constraints ............................................................ 10-16

10.2.1 Introduction .................................................................................................. 10-16

10.2.2 Los Gatos Overview. .................................................................................. 10-1617

10.2.3 Demographics .......................................................................................... 10-1920

10.2.4 Household Characteristics ......................................................................... 10-2223

10.2.5 Housing Stock Characteristics .................................................................... 10-2425

10.2.6 Special Housing Needs .............................................................................. 10-2627

10.2.7 Governmental and Non-Governmental Constraints .................................... 10-3031

10.3 Site Inventory and Opportunities ......................................................................... 10-3132

10.3.1 Introduction .............................................................................................. 10-3132

10.3.2 Sites Summary. ......................................................................................... 10-3132

10.3.3 Summary of Quantified Objectives………………………………………………………….…10-3233

10.4 Energy and Resource Conservation ...................................................................... 10-3334

10.4.1 Opportunities for Energy Conservation ...................................................... 10-3334

10.4.2 Energy-Related Goals and Policies. ............................................................ 10-3335

10.5 Goals and Policies ............................................................................................... 10-3435

10.6 Implementation Programs ................................................................................... 10-3941

10.7 Glossary and Acronyms ....................................................................................10-687176 Appendices
Appendix A Affirmatively Furthering Fair Housing Reports Appendix B Housing Needs Assessment
Appendix C Governmental and Non-Governmental Constraints Appendix D Sites Inventory Analysis
Appendix E Review of Previous Housing Element
Appendix F List of Organizations Contacted
Appendix G AFFH Segregation Report Los Gatos
Appendix H Sites Inventory Form
Appendix I Public Comments

10. Housing Element
NovemberSeptember March 2023 HCD Revised Draft Revised 2023-2031 Housing Element 10-1 is The 2023-2031 Housing Element is the Town of Los Gatos’ response to meet the housing needs of our community while meeting the State's housing goals as set forth in Article 10.6 of the California Government Code.

The California State Legislature has identified the attainment of a decent home and a suitable living environment for every Californian as the State's major housing goal. The Los Gatos Housing Element analyzes the Town’s housing needs, assesses fair housing practices, identifies opportunities for future residential development, and addresses potential constraints to housing development in the Town. Based on this research, the Housing Element includes goals, policies, and implementation programs aimed at addressing existing and future housing needs of Los Gatos. represents a sincere and open-minded effort to meet local and regional housing needs within the constraints of a largely built-out community, limited land availability, and extraordinarily high costs of land and housing. The Housing Element serves as Chapter 10 of the Town’s 2040 General Plan.  A copy of the Town’s 2015-2023 Housing Element can be found at this link:
https://www.losgatosca.gov/1735/General-Plan---Housing-Element

10.1 Introduction
Pursuant to State law, the Housing Element must be updated periodically according to statutory deadlines. This 6 th Cycle Housing Element covers the planning period January 31, 2023, through January 31, 2031 and replaces the Town's 5th Cycle Housing Element that covered the period 2015 through 2023.

Per State Housing Element law, the document must be periodically updated to:
 Outline the community’s housing production objectives consistent with State and regional growth projections;
 Describe goals, policies, and implementation programs to achieve local housing objectives;  Examine the local need for housing with a focus on special needs populations;  Identify adequate sites for the production of housing serving various income levels;  Analyze potential constraints to new housing production;  Evaluate the Housing Element for consistency with other General Plan elements; and  Evaluate Affirmatively Furthering Fair Housing.

A Housing Element is considered to be out of compliance with the State’s Housing Element law if one of the following applies:
 It has not been revised and updated by the statutory deadline; or  Its contents do not substantially comply with the statutory requirements.

HCD Revised Draft Revised 2023-2031 Housing Element
10-2 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023 Repercussions for a jurisdiction which does not comply with the Housing Element Law include:
 Limited access to State Funding.
 Vulnerability to litigation from housing rights’ organizations, developers, and the Department of Housing and Community Development (HCD), resulting in the following potential consequences:
a. The court may order the jurisdiction to bring its Housing Element into compliance within 120 days; b. Suspension of a jurisdiction’s authority to issue building permits or grant zoning changes, variances, or subdivision map approvals;
c. The court may step in and approve housing projects; and d. If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the case, it often must pay substantial attorney fees to the plaintiff’s attorneys in addition to the fees paid to its own attorneys.

10.1.1 California’s Housing Crisis
The 6th Cycle Housing Element Update comes at a critical time because California is experiencing a housing crisis. As is the case for all jurisdictions in California, Los Gatos must play its part in meeting the demand for housing. In the last Housing Element cycle (2015 to 2023), Los Gatos’ Regional Housing Needs Allocation (RHNA) called for 619 new housing units; however, as of December 31, 2021, only 81 percent of these housing units have been permitted (502 units). Of those constructed, the large majority were affordable only to households making more than the Town’s area median income (AMI). In 2022, this amounted to $168,500 for a family of four.

Without immediate action, the housing crisis will only get worse. In the 20-year period (2020 to 2040), Santa Clara County is projected to add 169,450 jobs, which represents a 15 percent increase. Los Gatos is projected to add nearly 1,030 jobs in the same period, a five percent increase. These changes will increase demand for housing across all income levels. The Town and region must identify ways to significantly increase housing production, or risk worsening the burden for existing lower income households. Many lower income households do not have the means to move to a new location of employment and are faced with unsustainable increases in housing cost.

The lack of affordable housing has constrained the Silicon Valley economy as well-educated workers have become increasingly mobile in searching for better jobs and a higher quality of life.

If Los Gatos and the region become more competitive in attracting high-skilled workers and increasingly unaffordable to lower income workers and seniors, then social and economic segregation will worsen, only exacerbating historic patterns of housing discrimination, racial bias, and segregation. This potentiality has become so acute in recent years that the California Legislature addressed the issue with new legislation in 2018.

Assembly Bill (AB) 686 requires all State and local agencies to explicitly address, combat, and relieve disparities resulting from past patterns of housing segregation to foster more inclusive communities. This is commonly referred to as Affirmatively Furthering Fair Housing (AFFH). The legislation applies to all Housing Elements revised after January 1, 2021.

10.1.2 Regional Housing Needs Allocation
The Plan Bay Area 2050 Final Blueprint forecasts that the nine Bay Area counties will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, HCD has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very lowincome households to market rate housing.1 This calculation, known as the Regional Housing Needs
1 HCD divides the RHNA into the following four income categories: Very Low income: 0-50 percent of AMI, Low income: 50-80 percent of AMI, Moderate income: 80-120 percent of AMI, and Above Moderate income: 120 percent or more of AMI.

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-3 Determination (RHND), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need.

Almost all jurisdictions in the Bay Area received a larger RHNA this cycle compared to the last cycle, primarily due to changes in State law that led to a considerably higher RHND compared to previous cycles.

On January 12, 2022, HCD approved the Association of Bay Area Government’s (ABAG) adopted RHNA Methodology. For Los Gatos, the RHNA to be planned for this cycle is 1,993 units, an increase from the last cycle. Table 10-1 shows the RHNA, including breakdown by affordability levels, for Los Gatos for the period 2023 through 2031.

Table 10-1 Regional Housing Needs Allocation
Income Group Percentage of AMI Share
Extremely Low Income 0-30 268
Very Low Income 31-50 269
Low Income 51-80 310
Moderate Income 81-120 320
Above Moderate Income Over 120 826
Total 1,993
Note: State law requires that jurisdictions project the housing needs of extremely low income households. This projection can be estimated at 50 percent of the very low income need.

10.1.3 Affirmatively Furthering Fair Housing
In 2018, AB 686 established an independent State mandate to address AFFH. AB 686 extends requirements for Federal grantees and contractors to “affirmatively further fair housing,” including requirements in the Federal Fair Housing Act, to public agencies in California. Affirmatively furthering fair housing is defined specifically as taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity by replacing segregated living patterns with truly integrated and balanced living patterns; transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining compliance with civil rights and fair housing laws.

AB 686 requires public agencies to:
 Administer their programs and activities relating to housing and community development in a manner to affirmatively further fair housing;
 Not take any action that is materially inconsistent with the obligation to affirmatively further fair housing;  Ensure that the program and actions to achieve the goals and objectives of the Housing Element affirmatively further fair housing; and
 Include an assessment of fair housing in the Housing Element.

The requirement to AFFH is derived from The Fair Housing Act of 1968, which prohibited discrimination concerning the sale, rental, and financing of housing based on race, color, religion, national origin, or sex and was later amended to include familial status and disability. The 2015 U.S. Department of Housing and Urban Development (HUD) Rule to Affirmatively Further Fair Housing and California AB 686 (2018) both mandate that

HCD Revised Draft Revised 2023-2031 Housing Element
10-4 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023 each jurisdiction takes meaningful action to address significant disparities in housing needs and access to opportunity. AB 686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes inclusive community participation, an assessment of fair housing, a site inventory reflective of AFFH, and the development of goals, policies, and programs to meaningfully address local fair housing issues.

An AFFH analysis was prepared by Root Policy Research and is included as an appendix to this Housing Element (see Appendix A). An action matrix for programs and actions that aim to affirmatively further fair housing is included in Section 10.6, Implementation Programs, of this Housing Element.

Defining Segregation
Segregation is the separation of different demographic groups into concentrated geographic locations or communities, meaning that groups are unevenly distributed across geographic space. Appendix A examines two spatial forms of segregation: neighborhood level segregation within a local jurisdiction; and Town level segregation between jurisdictions in the Bay Area.

Neighborhood level segregation (within a jurisdiction, or intra-Town): Segregation of race and income groups can occur from neighborhood to neighborhood within a Town. For example, if a local jurisdiction has a population that is 20 percent Latinx, but some neighborhoods are 80 percent Latinx while others have nearly no Latinx residents, that jurisdiction would have segregated neighborhoods.

Town level segregation (between jurisdictions in a region, or inter-jurisdiction): Race and income divides also occur between jurisdictions in a region. A region could be very diverse with equal numbers of White, Asian, Black, and Latinx residents, but the region could also be highly segregated with each jurisdiction consisting solely of one racial group.

There are many factors that have contributed to the generation and maintenance of segregation. Historically, racial segregation stemmed from explicit discrimination against people of color, such as restrictive covenants, redlining, and discrimination in mortgage lending. This history includes many overtly discriminatory policies made by Federal, State, and local governments. Segregation patterns are also affected by policies that appear raceneutral, such as land use decisions and the regulation of housing development.

Segregation has resulted in vastly unequal access to public goods such as quality schools, neighborhood services and amenities, parks and playgrounds, clean air and water, and public safety. Segregation has lasting generational affects that target low-income and minority communities. Unequal access to public goods disproportionately affects undeserved communities, leading to lower levels of educational attainment, higher morbidity rates, and higher mortality rates.

Segregation Patterns in the Bay Area
Across the San Francisco Bay Area, White residents and above moderate-income residents are significantly more segregated from other racial and income groups (see Appendix B). The highest levels of racial segregation occur between the Black and White populations. The analysis completed for Appendix A indicates that the amount of racial segregation both within Bay Area cities and across jurisdictions in the region has decreased since the year 2000. This finding is consistent with recent research from the Othering and Belonging Institute at UC Berkeley, which concluded that, “[a]lthough seven of the nine Bay Area counties were more segregated in 2020 than they were in either 1980 or 1990, racial residential segregation in the region appears to have peaked around the year 2000 and has generally declined since.” However, compared to cities in other parts of California, Bay Area jurisdictions have more neighborhood level segregation between residents from different racial groups.

Additionally, there is also more racial segregation between Bay Area cities compared to other regions in the State.

The Federal Fair Housing Act prohibits discrimination in housing on the basis of race or color, national origin, religion, sex, familial status, and disability. Figure 10-1 on the following page shows the number of HCD Fair Housing Inquiries for the period 2013 through 2021.

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-5 Figure 10-1 HCD Fair Housing Inquiries (2013- 2021)
Source: California Department of Housing.

Segregation and Land Use
It is difficult to address segregation patterns without an analysis of both historical and existing land use policies that impact segregation patterns. Land use regulations influence what kind of housing is built in a county, city, town, or neighborhood. These land use regulations in turn impact demographics, and they can be used to affect the number of houses in a community, the number of people who live in the community, the wealth of the people who live in the community, and where within the community they reside. Land use regulations have led to disparities among neighborhoods based on class and race.

Segregation in the Town of Los Gatos
 As of 2020, White residents are the most geographically concentrated compared to other racial groups in Los Gatos, as measured by the isolation index. White residents live in neighborhoods where they are less likely to come into contact with other racial groups.
 Among all racial groups, the White population’s isolation index value has changed the most over time, becoming less segregated from other racial groups between 2000 and 2020.  According to the dissimilarity index, within Los Gatos, racial segregation is most significant between Black and White populations. 2 However, this dissimilarity index 3 value is not a reliable data point due to small population size.
2 The analysis conducted for this report suggests that dissimilarity index values are unreliable for a population group if that group represents approximately less than 5% of the jurisdiction’s total population. ABAG/MTC recommends that when cities have population groups that are less than 5% of the jurisdiction’s population (see Figure B-4 in Appendix B) the assessment could focus on the isolation index or Thiel’s H-Index to gain a more accurate understanding of neighborhood-level racial segregation in their jurisdiction. 3 The “index of dissimilarity” is the most commonly used and accepted method of measuring segregation, and compares how evenly one population subgroup is spread out geographically compared to another population sub-group.

HCD Revised Draft Revised 2023-2031 Housing Element
10-6 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023  According to the Theil H-Index,4 neighborhood racial segregation in Los Gatos increased between 2010 and 2020. Neighborhood income segregation stayed about the same between 2010 and 2015.  Above moderate-income residents are the most segregated compared to other income groups in Los Gatos. Above moderate-income residents live in neighborhoods where they are less likely to encounter residents of other income groups.
 Among all income groups, the above moderate-income population’s segregation measure has changed the most over time, becoming less segregated from other income groups between 2010 and 2015.  According to the dissimilarity index, segregation between lower income residents and residents who are not lower income has increased between 2010 and 2015. In 2015, the income segregation in Los Gatos between lower income residents and other residents was higher than the average value for Bay Area jurisdictions.

Figures 10-2 and 10-3 identify HCD Fair Housing Inquiries by bias for the period 2013 through 2021 and a list of Fair Housing Assistance organizations within Santa Clara County. Figure 10-2 shows that a total of eight fair housing inquiries for Los Gatos were submitted with two submittals citing familial status as a bias and six cases citing no specific bias.

Figure 10-2 HCD Fair Housing Inquiries by Bias, January 2013-March 2021 Source: California Department of Housing and Community Development AFFH Data Viewer 4 The Theil H-Index is a statistic primarily used to measure economic inequality and other economic phenomena.

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-7 Figure 10-3 Fair Housing Assistance Organizations, Santa Clara County Source: Los-Gatos-Housing-Resources-Guide (losgatosca.gov) Regional Segregation
 Los Gatos has a higher percentage of White residents than other jurisdictions in the Bay Area as a whole, a lower percentage of Latinx residents, a lower percentage of Black residents, and a lower percentage of Asian and Pacific Islander residents.
 Regarding income groups, Los Gatos has a lower percentage of very low-income residents than other jurisdictions in the Bay Area as a whole, a lower percentage of low-income residents, a lower percentage of moderate-income residents, and a higher percentage of above moderate-income residents.

HCD Revised Draft Revised 2023-2031 Housing Element
10-8 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023

10.1.4 Overview of Planning and Legislative Efforts
This section provides an overview of planning and legislative efforts that provide the context for development of the 6th Cycle Housing Element.
2040 General Plan
On June 30, 2022, the Town Council adopted the 2040 General Plan and accompanying Environmental Impact Report (EIR). As of September 27, 2022, The Land Use and Community Design Elements of the 2040 General Plan are suspended pending the results of a referendum. In the interim, the Town’s 2020 General Plan Land Use and Community Design Elements will govern during the suspension period.

The update process that resulted in the adoption of the 2040 General Plan was conducted with an understanding of the changes that would be required for the next Housing Element update cycle, and with a goal of minimizing the number of additional General Plan amendments that would be required to ensure consistency between the updated Housing Element and other Elements of the General Plan. Given this recent work that resulted in the 2040 General Plan, the only Housing Element Implementation Program required to ensure consistency is Implementation Measure BG to allow the housing density suspended by the referendum mentioned above. The use of Implementation Measure BG allows the Housing Element to assume that the properties on the Sites Inventory are able to develop at the greater density levels and heights envisioned under the 2040 General Plan, regardless of the results of the referendum. In this way the Housing Element can depend on this new development capacity rather than being constrained by the referendum.

Effectiveness of Previous Housing Element
The Town of Los Gatos 5th Cycle Housing Element (2015 to 2023) identified a RHNA of 619 housing units between January 31, 2015, and January 1, 2023. As of December 31, 2022, 683 new units were added to the Town’s housing stock, achieving approximately 110 percent of the Town’s RHNA. Units affordable to moderateand lower-income households that were created during the planning period include senior rental units (North Forty Phase I), an attached condominium (Union Avenue), detached townhomes (Knowles Avenue) produced through the Town’s Below Market Program (BMP), and accessory dwelling units (ADU). See Appendix E for a complete review and analysis of Los Gatos’s 5th Cycle Housing Element (2015-2023).

New State Laws Affecting Housing
While the Town has taken steps throughout the 5th Cycle to increase housing production locally, the State passed numerous laws to address California’s housing crisis during the same period. As the State passes new legislation in the remainder of the 5th Cycle and during the 6th Cycle, the Town will continue to amend the Municipal Code; to monitor and evaluate policies and programs designed to meet State requirements; and to proactively implement new policies and programs to help increase housing production in the Town.

In 2019, several bills were signed into law that include requirements for local density bonus programs, the Housing Element, surplus lands, ADU streamlining, and removing local barriers to housing production. The Town has and will continue to implement changes required by State law, through amendments to the Los Gatos Municipal Code. The following is a summary of recent legislation and proposed Town activities that will further the Town’s efforts to increase housing production during the 6th Cycle. Please see the previous section for a discussion of AB 686 (Affirmatively Furthering Fair Housing).

Streamlining for Subdividing Single-Family Lots
Senate Bill (SB) 9, the California Housing Opportunity and More Efficiency (HOME) Act, streamlines the process for a homeowner to create a duplex or subdivide an existing lot. Any new housing created as a result of this bill must meet a specific list of qualifications that protects historic districts, preserves environmental quality and the look of communities, and prevents tenants from being displaced. This legislation will enable homeowners to provide access to more rental and ownership options for working families who would otherwise be priced out of neighborhoods.

Incentives for Accessory Dwelling Units
AB 68, AB 587, AB 671, AB 881, and SB 13 further incentivize the development of ADUs, through streamlined permits, reduced setback requirements, increased allowable square footage, reduced parking requirements, and reduced fees. The Town has amended its regulations and procedures pursuant to State law. In addition, the

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-9 Town increased the allowable floor area ratio by an additional 10 percent for development of ADUs. See Appendix C for additional information regarding the Town’s ADU program and incentives to increase ADU production and affordability.

Density Bonus Update
AB 1763 requires jurisdictions to provide a density bonus to development projects that restrict 100 percent of their units as affordable to lower and moderate-income households.

Objective Standards for Multi-Family and Mixed-Use Development Applications The Town of Los Gatos is developing objective standards for the review of multi-family housing and mixed-use development applications. This effort is in response to State legislation requiring jurisdictions to adopt objective standards and to implement them in a streamlined review of qualifying housing projects. Objective standards are defined under State law as “standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal” (California Government Code, Section 65913.4). Objective standards are a powerful tool that allow communities to respond to State housing laws that are reducing local control of development. They provide an opportunity to ensure that the appearance of new development is compatible with the Town’s vision, while reinforcing objectivity in the decisionmaking process.

Low-Barrier Navigation Centers
A "Low Barrier Navigation Center" is a low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. AB 101 requires jurisdictions to allow “low-barrier navigation centers” by-right in areas zoned for mixed-uses and in non-residential zones permitting multi-family uses if the center meets specified requirements. Implementation Program BC has been included pursuant to the requirements of AB 101.

Surplus Public Land
AB 1255 and AB 1486 seek to identify and prioritize State and local surplus lands available for housing development that are affordable to lower income households. The Town has not identified surplus lands through the sites inventory analysis and will report on these lands if identified through the Housing Element Annual Progress Reports.

Accelerated Housing Production
AB 2162 and SB 2 address various methods and funding sources that jurisdictions may use to accelerate housing production.

Priority Processing
SB 330 enacts changes to local development policies, permitting, and processes that will be in effect through January 1, 2025. SB 330 places new criteria on the application requirements and processing times for housing developments; prevents localities from decreasing the housing capacity of any site, such as through downzoning or increasing open space requirements, if such a decrease would preclude the jurisdiction from meeting its RHNA housing targets; prevents localities from establishing non-objective standards; and requires that any proposed demolition of housing units be accompanied by a project that would replace or exceed the total number of units demolished. Additionally, any demolished units that were occupied by lower income households must be replaced with new units affordable to households with those same income levels.

Housing and Public Safety
In response to SB 379, SB 1035, SB 99, and AB 747, local jurisdictions must update their Safety Element to comprehensively address climate adaptation and resilience and identify evacuation routes. These updates are triggered by any General Plan or Housing Element Update that occurs after January 1, 2014. The Town has conducted this update through its recent General Plan Update, so that it can direct future development into areas

HCD Revised Draft Revised 2023-2031 Housing Element
10-10 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023 that avoid or reduce unreasonable risks, while also providing needed housing and maintaining other community planning goals.

Online Transparency
AB 1483 increases transparency for residential development project applicants. The Town of Los Gatos’ website maintains the publication of specific fee and zoning information intended to increase transparency for residential development project applications.

10.1.5 Public Participation
The primary purpose of this section is to describe the effort made by the Town of Los Gatos to engage all economic segments of the community (including residents and/or their representatives) in the development and update of the Housing Element. The 6th Cycle RHNA numbers are a significant change for all California communities, and the success of the update process is dependent on a robust, inclusive, and meaningful community outreach and engagement program. The COVID-19 pandemic has complicated community outreach efforts, but the pandemic has also catalyzed the development of new digital tools that have brought interactive engagement to a new level. The following section outlines efforts taken by the Town of Los Gatos to engage the community in the Housing Element Update process. The summary below illustrates the efforts that the Town has employed to reach the community for input and community engagement as part of the 2023-2031 Housing Element Update process to date:
 Postcards sent to all property owners and tenants in the Town for a Housing Element Update Community Meeting (17,446 in total).
 Announcements provided in the local newspaper for all Housing Element Advisory Board (HEAB) meetings, community meetings, joint study sessions, and the 30-day public review period of the Initial Public Review Draft Housing Element (Los Gatos Weekly).  19 pop-up informational tables at the Los Gatos Farmers’ Market.  Two Housing Element Update information tables at the Los Gatos Library.  Information table at the Town Community Event (Spring in the Green).  Social posts on five platforms, including Facebook, Instagram, Twitter, Nextdoor, and the What’s New page on the Town’s website for all Housing Element meetings, interactive on-line engagement, and public engagement opportunities.
 Public notices for Housing Element Advisory Board (HEAB) meetings and community meetings posted at Town Hall and the Library.
 Targeted email messaging that sends email updates to the Town’s Notify Me subscribers for the 2040 General Plan Update and Housing Element Update.
 100 Property Owner Interest Forms mailed to all property owners on the Site Inventory.  Online advertisements for each Housing Element meeting and interactive on-line engagement opportunities on the Town’s website, the Town’s General Plan Update website, and the Town’s Housing Element website.
 Use of the Balancing Act, a housing simulation tool, available on the Town’s dedicated Housing Element Update website for online public engagement.
 201 submissions to the online site surveys and 42 completions of the Balancing Act housing simulation tool.
 Seven community group meetings for the 2040 General Plan Update, including discussion regarding density and affordable housing.
 15 19 HEAB meetings held to date.
 Town Council meeting approving the draft Site Inventory.  One community meeting hosted by the Santa Clara County Planning Collaborative for Santa Clara County municipalities.
 A public meeting hosted by West Valley Community Services; Envisioning an Inclusive Los Gatos:

Housing Element 101.

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-11  A joint study session with the Town Council and Planning Commission to discuss housing growth options for the 2040 General Plan.
 A joint study session with the Town Council, Planning Commission, and HEAB with panelists from both market rate and non-profit developers.
 Participation in a Santa Clara County Equity Advisory Group Meeting.  Two informational meetings with the Los Gatos Democracy Tent community organization.

Staff expects to continue this level of outreach and engagement throughout the remainder of the Housing Element Update process, including: information on the Town’s website; newspaper ads; social media posts; email notifications; pop-up tables at the Farmers’ Market, library, and public events; and the website for the Housing Element Update (engagelosgatoshousing.com). Through staff’s engagement with the public at the Farmers’ Market, staff has heard community support for: housing options to meet the needs of seniors and large families; displacement prevention of existing naturally affordable housing units; housing of essential workers; and lower wage earners; and the Town incentives to attract affordable housing projects.

Housing Element Advisory Board
On August 3, 2021, the Los Gatos Town Council adopted Resolution 2021-032 establishing the HEAB to serve as an advisory board for preparation of the Housing Element Update. On September 21, 2021, the Town Council appointed four at-large members to the HEAB, which when combined with the nine members of the existing General Plan Committee (GPC), formed a 13-member oversight board.

Housing Element Website
The Town developed a focused Housing Element Update website “Engage Los Gatos Housing” to provide a forum for the Town’s online community to engage in the Housing Element Update process. The site provides an interactive place for the public to learn about and be a part of the Town’s work on housing and to help guide decision makers on the direction of future housing. This online platform has been open throughout the Town’s 6th Cycle Housing Element Update and updated regularly with key documents, key meeting dates and times, engagement opportunities, and other information.

Balancing Act Online Public Engagement
The Balancing Act tool was added on the Town’s Housing Element website to allow the public to participate and provide site selection feedback on the online platform. The Balancing Act is an online simulation-based tool for public engagement on potential housing sites. The Balancing Act provided an interactive map showing where potential housing could be placed to fulfill the Town’s RHNA.

Site Surveys Online Public Engagement
As a companion to the Balancing Act mapping tool opportunity to gather public comments about potential housing sites, surveys were made available for each individual site. The dedicated Housing Element Update website included opportunities to learn more about the Housing Element Update process and how to contribute to the process.

Renter’s Survey
On November 15, 2022, the Town of Los Gatos published a Renter’s Housing Survey to gather input from residents who are currently renting or have a history of renting in the Town. The goal of the survey was to inform the Town on renter household’s needs and possible barriers to accessing housing. The survey was made available in English, Russian, and Spanish, and posted online at www.EngageLosGatosHousing.com.

Additionally, the survey was distributed in print throughout the Town in collaboration with West Valley Community Services (WVCS). The survey received a total of 62 responses. See Appendix B for the survey results.

Property Interest Forms
Letters were sent to owners of properties that were considered by the Town to be candidates for housing sites.

The letters included a description of the Housing Element Update process and an invitation to include their property on the Sites Inventory List.

HCD Revised Draft Revised 2023-2031 Housing Element
10-12 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023 Community Meetings
On August 25, 2021, Town staff participated with other municipalities as part of the Santa Clara County Housing Collaborative to conduct the Let’s Talk Housing meeting, a regional outreach effort. The online event introduced community participants to the Housing Element Update process. Town staff presented an introduction to the Housing Element Update and hosted breakout Zoom room discussions to learn more about community members housing experiences, needs challenges, and opportunities. There were 35 participants.

On March 2, 2022, West Valley Community Services (WVCS) hosted an online community engagement event, Envisioning an Inclusive Los Gatos: Housing Element 101. The online event provided an opportunity for the public to discuss opportunities with panelists for the Town to improve the housing community for everyone, ensuring inclusive, diverse, and affordable housing in Town. Community members, Housing Element experts, nonprofits, housing developers, and clients with experience in homelessness and affordable housing joined the conversation, discussing housing challenges, opportunities, and personal experiences. The featured panelists included:
 Ande Flower, Principal Planner at EMC Planning Group.  Alison Cingolani, Policy and Research Associate at SV@Home.  Bianca Neumann with EAH Housing.
 Two WVCS clients.

Housing Element Advisory Board Public Meetings (HEAB)
The HEAB is an advisory board created for the purposes of advising Town staff, providing a public forum for public involvement, and making recommendations to the Planning Commission and Town Council on updates to the Housing Element. The HEAB serves as an advisory body that provides input on specific tasks associated with the Housing Element Update. The role of the HEAB is to:
 Provide guidance on the development of the Housing Element Update;  Provide an additional forum for public involvement;
 Forward milestone products to Town Council;
 Review the Draft Housing Element; and
 Make recommendations to the Planning Commission and Town Council.

The HEAB meeting agendas allow for two opportunities for public comment, at the beginning and end of each meeting, to provide the public an opportunity to react to the topics proposed and discussed. The public is invited to participate and provide comments at the HEAB meetings or in writing. Meetings are advertised through social media, the Town’s website, the Housing Element Update website, newspaper advertisements, postings at Town Hall and the Library, and emails to the General Plan Notify Me list. The following meetings were held via Zoom with public participation and will continue through the Housing Element Update process.  October 21, 2021: Kickoff Meeting and Housing Element Overview.  December 16, 2021: Review and Discussion of Technical Appendices.  February 17, 2022: Review and Discussion of the Housing Site Inventory Analysis Process.  April 21, 2022: Review and Discussion of the Housing Element Site Inventory.  May 5, 2022: Review and Discussion of the Housing Element Site Inventory.  May 19, 2022: Review and Discussion of the Housing Element Site Inventory.  June 16, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.  July 7, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.  August 4, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.  August 18, 2022: Review and Discussion of the full preliminary Housing Element Draft.  September 15, 2022: Receive Public Comments on the Initial Public Review Draft Housing Element.  October 20, 2022: Review of the Submittal of the HCD Draft Initial Review Housing Element.  December 1, 2022: Discuss Anticipated Comments on the Town’s Draft Housing Element.

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-13  February 16, 2023: Review of HCD comments and discuss possible modifications to the Housing Element.  March 16, 2023: Review and Discuss the Town’s Revised Draft Housing Element.  June 15, 2023: Review of HCD comments and discuss possible modifications to the Housing Element.  July 20, 2023: Review draft modifications to the Town’s Draft Revised Housing Element.  August 24, 2023: Review draft modifications to the Town's Draft Revised Housing Element.  September 28, 2023: Review of the Town’s Draft Revised Housing Element.

In addition, the following groups have been invited to join the Housing Element Advisory Board Meetings:
 Los Gatos Chamber of Commerce.
 West Valley Community Services.
 Los Gatos Interfaith Community.
 Public and Private Schools.
 Los Gatos Anti-Racism Coalition.
 Los Gatos Rotary Club.
 Los Gatos Kiwanis Club.
 Los Gatos Lions Club.
 Architects, Designers, and Market and Affordable Housing Developers who typically do work within Town.  The Town’s Senior Services Committee.

The list of organizations that were contacted to participate in the Housing Element Update process is provided in Appendix F.

Joint Study Sessions
On December 7, 2021, the Town Council and the Planning Commission held a Joint Study session via Zoom to discuss housing growth options and related analyses for Planning Commission and Town Council consideration of the 2040 General Plan Update. The public was encouraged to continue to submit comments and participate in the 2040 General Plan Update, including any preferences for housing growth options.

On April 6, 2022, the Town Council, Planning Commission, and HEAB participated in a Joint Study session via Zoom titled “Nuts and Bolts of Affordable Housing.” Several residents requested that the Town Council convene a study session with the Planning Commission and HEAB to learn more about the challenges of building affordable housing, particularly the financial and legal realities. The residents provided discussion questions to the panel members. The Town Council, Planning Commission, and HEAB members had the opportunity to ask questions of panel members. The panelists included the following:
 Josh Selo, West Valley Community Services Executive Director served as moderator for the panel discussion.
 Barbara Kautz, Goldfarb Lipman Attorneys, provided the current legal landscape for Housing Elements.  Don Caprobres, Harmonie Park Development, provided expertise in market rate development and partnerships with affordable housing developers.
 Andrea Osgood, Eden Housing, provided hands-on knowledge of affordable housing development and working with market rate developers.
 Chris Neale, The CORE Companies, provided experience with both market and affordable housing development.

Public Hearings
On June 7, 2022, the Town Council accepted the sites in Tier 1 for inclusion in the Draft Site Inventory as recommended by the HEAB at their May 19, 2022, meeting.

HCD Revised Draft Revised 2023-2031 Housing Element
10-14 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023 On December 20, 2022, the Town Council recommended that the current version of the Draft 2023-2031 Housing Element, as submitted to HCD on October 14, 2022, be considered for adoption prior to the statutory deadline of January 31, 2023.

On January 11, 2023, the Planning Commission unanimously recommended that the Town Council adopt the Draft 2023-2031 Housing Element with the revised Sites Inventory Analysis and revised Sites Inventory Form.

On January 24, 2023, the Town Council discussed the Town’s 2022 through 2024 strategic priorities and included affordable housing partnerships as a strategic priority for the Town.

On January 30, 2023, the Town Council adopted the 2023-2031 Housing Element with modifications to the Sites Inventory, finding that it was in substantial compliance with State law with the revised Sites Inventory Analysis and revised Sites Inventory Form.

On April 4, 2023, the Town Council reviewed and discussed the Draft Revised 2023-2031 Housing Element as submitted to HCD on March 31, 2023.

Justice, Diversity, Equity, and Inclusion
Like many other cities in the United States, Los Gatos has a history which includes racial injustice. The Town also has a long-standing commitment to being equitable and inclusive. In the last couple years, with racial justice issues at the forefront of local and national conversations, the Town has taken a more holistic approach to Justice, Equity, Diversity, and Inclusion work. The Town of Los Gatos values justice, equity, diversity, and inclusion (JEDI). The Town works proactively to ensure the rights and opportunities of everyone in Los Gatos and opposes any attempts to undermine the safety, security, and rights of any members of the community. The Town promotes equal treatment, equitable distribution of and access to resources, and engagement in issues affecting the lives of residents, workers, and visitors. The Town does not tolerate discrimination, racial injustice, or police brutality. The Town works toward realizing the values of diversity, equity, and inclusion by taking specific actions to become a more inclusive community.

In May of 2017, the Town Council affirmed a commitment to Los Gatos as a diverse, supportive, equitable, and inclusive community.

On June 5, 2020, the Town affirmed its commitment to stand in solidarity with the black community with a Proclamation from the Mayor.

On June 17, 2020, the Mayor signed the Obama Foundation’s Mayor’s Pledge, committing to review Police Department standards, report back to the community, and work on reforms.

On June 19, 2020, the Town launched a new webpage, “Becoming an Inclusive Community,” dedicated to outlining the shared values of justice, diversity, equity, and inclusion. In naming the new webpage “Becoming an Inclusive Community,” the Town acknowledged that there is work to do; and by clearly stating the commitment to inclusivity and diversity, the Town strives to take the steps needed to reach that goal. The dedicated webpage can be viewed at www.LosGatosCA.gov/Inclusivity and is kept updated on a regular basis with Town efforts and current information.

On July 30, 2020, the General Plan Update Advisory Committee (GPAC) held a special meeting to review and discuss the topics including racial, social, and environmental justice in the General Plan. As a result of this meeting, the first Element of the 2040 General Plan is a new Racial, Social, and Environmental Justice Element.

In 2020, the Town hosted three community workshops via teleconference to foster dialogue on racial and social justice and how Los Gatos can be more welcoming for all. The three conversations covered police reform, and housing. The inclusivity webpage contains full video recordings, presentations, and other information associated with these conversations.

On June 30, 2022, the Council adopted the 2040 General Plan with a brand-new chapter: the Racial, Social, and Environmental Justice Element. This guiding Element works in conjunction with the Town’s commitment to create a more inclusive Los Gatos and provide safe spaces for all to join in conversations to shape the Town’s future.

The Town’s work to further the goals and policies stated in this new Element include: hosting community conversations; adopting Diversity, Equity, and Inclusion as an ongoing Council Strategic Priority since 2021; implementing Police reforms; working with the California Senate and Assembly on the development of Senate Bill 1100, which updates public meeting laws to provide an important balance of maintaining freedom of speech,

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-15 protecting public safety, and providing protection for elected officials; and developing a formal JEDI plan with goals, action items, and timelines.

Pop-up Community Outreach
Farmers’ Market Informational Booth
Town staff hosted a 2040 General Plan Update and Housing Element Update informational booth at the Los Gatos Farmers’ Market on Sundays from 9:00 a.m. to 12:00 p.m. on the following dates:
 June 27, 2021.
 July 18, 2021.
 August 8, 2021.
 August 29, 2021.
 September 19, 2021.
 October 10, 2021.
 October 31, 2021.
 November 21, 2021.
 December 19, 2021.
 January 19, 2022.
 February 13, 2022.
 March 13, 2022.
 April 10, 2022.
 May 22, 2022.
 June 12, 2022.
 September 4, 2022.
 October 9, 2022.
 November 13, 2022.
 December 11, 2022.
 January 15, 2023.
 February 19, 2023.
 March 26, 2023.
 May 21, 2023.
 June 11, 2023.
 July 23, 2023.

The Farmers’ Market is held at the Town’s Plaza Park located in downtown Los Gatos. The informational booth has provided an opportunity for planning staff to have approximately 75 interactions with the public, answer questions regarding housing opportunities and challenges within the Town, the location of possible housing sites in Town, the General Plan Update and Housing Element Update process in general, and key participation opportunities. Informational handouts were provided to members of the public with links to the Town’s General Plan Update and Housing Element Update websites. Staff interacted with members of the community, including both Town residents and non-residents. Staff members will continue hosting this informational booth once a month through the end of the Housing Element Update process.

Spring Into Green Informational Booth
On April 24, 2022, and April 24, 2023, Town staff hosted an informational booth for the 2040 General Plan Update and Housing Element Update at the Town of Los Gatos’ Spring into Green event. The outdoor event celebrates Keep Los Gatos Beautiful Month, environmental sustainability, and Earth Day. The festivities included environmentally focused exhibitor booths, a tree planting ceremony, the weekly Los Gatos Farmers’ Market,

HCD Revised Draft Revised 2023-2031 Housing Element
10-16 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023 family-friendly activities, food, and live music. The informational booth provided an opportunity for Town staff to answer the public’s questions regarding housing opportunities and challenges within the Town, possible housing sites in Town, the General Plan Update and Housing Element Update process and key participation opportunities. 2040 General Plan Update
On June 30, 2022, the Town Council adopted the 2040 General Plan. As mentioned above, the 2040 General Plan includes a new chapter: Racial, Social, and Environmental Justice. The Racial, Social, and Environmental Justice Element includes goals, policies, and implementation programs that encourage and support local efforts to increase participation in the local political process and to improve local conditions relative to racial, social, and environmental justice issues. The themes covered in this element lay the foundation for creating a more equitable and inclusive Town for all residents of Los Gatos. The Racial, Social, and Environmental Justice Element focuses on the empowerment of the community, and especially of the members of the community who have not been previously heard.

General Plan Update Advisory Committee (GPAC)
To help guide the update to the General Plan, the Town Council appointed a GPAC. The GPAC was composed of the Town’s General Plan Committee (GPC) and three additional residents. The GPC includes two Town Council members, three Planning Commissioners, and four residents. The GPAC served to review and discuss issues, opportunities, and the development the Draft 2040 General Plan. The GPAC held more than 35 public meetings throughout the General Plan Update process, listening to community input and contributing to the development of Land Use Alternatives, and the content of the General Plan document.

Public Participation to Affirmatively Furthering Fair Housing The Los Gatos public participation program was also responsive to AFFH, which requires local jurisdictions to conduct public outreach to equitably include all stakeholders in the housing element public participation program (see Section 10.1.3 for more complete information on AFFH).

Tribal Consultation
This public participation effort also includes formal consultation, pursuant to Government Code §65352.3, with representatives from nine Native American tribes that are present and active in Santa Clara County.

10.1.6 Public Comment
Public Comments
Comments received during the public review of the 6th Cycle Housing Element are included in Appendix I: Public Comments. Responses to public comments, where appropriate, are also provided.

10.2 Overview of Housing Needs and Constraints
This section summarizes the housing needs of Los Gatos as determined through the comprehensive housing data assessment and analysis presented in Appendix B and serves as the basis for housing goals, policies, and implementation programs. The housing summary gives an overview of population trends: characteristics of the housing stock; housing affordability; and special needs households.

10.2.1 Introduction
The Bay Area continues to see growth in both population and jobs, which means more housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have housing opportunities. While the number of people drawn to the region over the past 30 years has steadily increased, housing production has stalled, due to the high cost of land, contributing to the housing shortage that communities are experiencing. In many communities, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people across income levels being able to purchase homes or meet surging rents.

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-17

10.2.2 Los Gatos Overview
As California works to face its housing crisis, the State of California has adopted rules to ensure that the burden of housing an economically diverse and growing population is shared proportionately among all California communities. The Town is committed to meeting the housing challenge, while preserving the essential character of the community. The Town faces some of the following conditions as summarized below:
 Population growth trends in the Town are significantly lower than the County and regional rates.  The Town has more than double the County share of White population and a correspondingly smaller percent of minority populations.
 The Town has a higher share of high-income earners than the County and Bay Area.  The income gap between lower income residents and higher income residents in the Town is higher than the average value for Bay Area jurisdictions.
 Poverty rates are very low in the Town.
 The Town is a net importer of workers.
 Housing prices in the Town are extremely high. Home prices are valued at more than $2 million, and rental prices increased by 61 percent from 2009 to 2019.  The Town does not have any public housing and only a small portion of the Town contains Housing Choice Voucher usage.

Figures 10-4 and 10-5 on the following pages show the concentration of public housing buildings with less than seven units and buildings with eight to 35 units in Santa Clara County; and Housing Choice vouchers by census tract, respectively.

The remainder of this section provides an overview of the demographics, housing characteristics, and special housing needs that provide the context for Los Gatos’s 6th Cycle Housing Element Update. A more complete report on housing needs is presented in Appendix B.

HCD Revised Draft Revised 2023-2031 Housing Element
10-18 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023 Figure 10-4 Public Housing Buildings, Partial Bay Area Region Source: California Department of Housing and Community Development AFFH Data Viewer

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-19 Figure 10-5 Housing Choice Vouchers by Census Tract
Source: California Department of Housing and Community Development AFFH Data Viewer

HCD Revised Draft Revised 2023-2031 Housing Element
10-20 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023

10.2.3 Demographics
Population Trends
Generally, the population of the Bay Area continues to grow because of natural growth and because the strong economy draws new residents to the region. The population of the Town of Los Gatos increased by 10 percent from 2000 to 2020, which is below the 14.8 percent growth rate of the Bay Area. In 2020, the population of the Town was estimated to be 31,439 according to the Department of Finance. The population of the Town makes up

1.6 percent of Santa Clara County.5 In the Town of Los Gatos, roughly 13.5 percent of its population moved during the past year, a number that is roughly the same as the regional rate of 13.4 percent. Table 10-2 shows population growth trends for the Town, Santa Clara County, and the Bay Area as a whole.

Table 10-2 Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Los Gatos 27,357 28,751 28,592 28,872 29,413 30,807 31,439 Santa Clara County 1,497,577 1,594,818 1,682,585 1,752,696 1,781,642 1,912,180 1,961,969 Bay Area 6,020,147 6,381,961 6,784,348 7,073,912 7,150,739 7,595,694 7,790,537 Source: California Department of Finance, E-5 series
Population by Age
The distribution of age groups in a town or city shapes what types of housing the community may need in the near future. An increase in the older population may mean there is a developing need for more senior housing options, while higher numbers of children and young families can point to the need for more family housing options and related services. There has also been a move by many to age-in-place or downsize to stay within their communities, which can mean more multi-family and accessible units are also needed.

In 2019, the median age in the Town was 47 years, an increase from the median age of 41 in 2000. The youth population of the Town under the age of 18 was 6,767 and the senior population 65 and older was 6,393. These age groups represent 22 percent and 20.8 percent, respectively, of the Town’s population. This reflects a nationwide aging trend related to the large baby boom generation, as well as local characteristics. The Town of Los Gatos is a community with a high quality of life that encourages residents to stay throughout their lives. Aging in place, attracting retirees, and high housing costs that favor older, more financially stable households all contribute to the aging trend in the Town. Figure 10-6 shows the distribution of senior and youth population by race.
5 To compare the rate of growth across various geographic scales, Table 10-2 shows population for the jurisdiction, county, and region indexed to the population in the year 1990. This means that the data points represent the population growth in each of these geographies relative to their populations in 1990. NOTE: Universe: Total population; For more years of data, please refer to the Data Packet Workbook, Table POPEMP-01.

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-21 Figure 10-6 Senior and Youth Population by Race, Los Gatos, 2000-2019 Source: ABAG Housing Needs Data Workbook
Population by Race/Ethnicity
Understanding the racial makeup of a town, city, and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices, and displacement that has occurred over time and continues to impact communities of color today.6
Figures 10-7 and 10-8 show the population distribution by race and ethnicities in the Bay Area, Santa Clara County, and specifically Los Gatos, through the period 2000 to 2019. Since 2000, the percentage of residents in the Town of Los Gatos identifying as “White, Non-Hispanic” has decreased by 13.3 percentage points. At the same time the percentage of residents of all “Other Race of Multiple Races, Non-Hispanic” has increased. In absolute terms, the “Asian/API, Non-Hispanic” population increased the most, while the “White, Non-Hispanic” population decreased the most.

In 2019, 72.3 percent of the Town’s population was White while 0.9 percent was African American, 14.8 percent was Asian, and 7.9 percent was Latinx. People of color in Los Gatos comprise a proportion below the overall proportion in the Bay Area as a whole.7
6 See, for example, Rothstein, R. (2017). The color of law: a forgotten history of how our government segregated America. New York, NY & London, UK:

Liveright Publishing.
7 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting of both, such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity.

The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source.

HCD Revised Draft Revised 2023-2031 Housing Element
10-22 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023 Figure 10-7 Population by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figure 10-8 Population by Race and Ethnicity, Los Gatos, 2000-2019 Source: ABAG Housing Needs Data Workbook

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-23 Employment
Town residents most commonly work in the Financial and Professional Services industry. From January 2010 to January 2021, the unemployment rate in the Town decreased by three percentage points. Since 2010, the number of jobs located in the jurisdiction increased by 4,440 (28.8 percent).

Additionally, the jobs-household ratio in the Town has increased from 1.32 in 2002 to 1.59 jobs per household in 2018, which means the Town has more jobs than housing. A surplus of jobs relative to residents suggests the need to import workers. Los Gatos has more low-wage jobs than low-wage residents (where low-wage refers to jobs paying less than $25,000). At the other end of the wage spectrum, the Town has more high-wage residents than high-wage jobs (where high-wage refers to jobs paying more than $75,000).

10.2.4 Household Characteristics
Extremely Low-Income Households
Despite the economic and job growth experienced throughout the region since 1990, the income gap has continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has the highest income inequality between high- and low-income households in the State.

HUD annually updates it Section 8 Program income limits to reflect changes in median family income (MFI) levels for different size households and income limits for extremely low-, very low-, and low-income households. HCD must then annually update its income limits based on HUD’s annual revisions. California law and State Income Limits reference AMI that, pursuant to Health & Safety Code 50093(c), means the MFI of a geographic area, estimated by HUD for its Section 8 Program.

In Los Gatos, 65 percent of households make more than 100 percent of the AMI 8, compared to nine percent making less than 30 percent of AMI, which is considered extremely low-income. Regionally, more than half of all households make more than 100 percent AMI, while 15 percent make less than 30 percent AMI. In Santa Clara County, 30 percent AMI is equivalent to an annual income of $39,900 for a family of four. Many households with multiple wage earners, including food service workers, full-time students, teachers, farmworkers, public safety officers, and healthcare professionals can fall into lower AMI categories due to relatively stagnant wages in many industries.

Throughout the region, there are disparities between the incomes of homeowners and renters. Figures 10-9 and 10-10 show the AMI distribution and the poverty rate among different races and ethnicities in the Los Gatos area.

Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households. In Los Gatos, the largest proportion of both renters and homeowners is found in the greater than 100 percent of AMI group.
8 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are low income, those making 30 to 50 percent are very low income, and those making less than 30 percent are extremely low income. This is then adjusted for household size.

HCD Revised Draft Revised 2023-2031 Housing Element
10-24 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023 Figure 10-9 Area Median Income by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
People of color are more likely to experience poverty and financial instability as a result of Federal and local housing policies that have historically excluded them from the same opportunities extended to White residents.9 These economic disparities also leave communities of color at higher risk for housing insecurity, displacement, or homelessness. In Los Gatos, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents.

Figure 10-10 Poverty Rate by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
9 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-25 Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a town, city, and region. Generally, renters may be displaced more quickly if prices increase. As of 2019, there are a total of 12,083 housing units in Los Gatos, and fewer residents rent than own their homes: 35 percent versus 65 percent. By comparison, 43.6 percent of households in Santa Clara County are renters, while 43.9 percent of Bay Area households rent their homes.

Homeownership rates often vary considerably across race and ethnicity in the Bay Area and throughout the country. These disparities not only reflect differences in income and wealth, but also stem from Federal, State, and local policies that limit access to homeownership for communities of color, while facilitating homebuying for White residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Bay Area communities. In Los Gatos, 84 percent of Black households owned their homes, while homeownership rates were 72 percent for Asian households, 39 percent for Latinx households, and 65 percent for White households.

In many communities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In Los Gatos, 86 percent of households in detached singlefamily homes are homeowners, while 13 percent of households in multi-family housing are homeowners.

Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.

The University of California (UC), Berkeley has mapped all neighborhoods in the Bay Area, identifying their risk for gentrification. It finds that in Los Gatos there are no households that live in neighborhoods that are susceptible to or experiencing displacement and none live in neighborhoods at risk of or undergoing gentrification.

Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of the workforce. UC Berkeley estimates that all households in Los Gatos live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs.10 Figure B-18 in Appendix B shows household displacement risk and tenure.

10.2.5 Housing Stock Characteristics
Number of Homes
The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes in Los Gatos increased by four percent from 2010 to 2020, which is below the growth rate for Santa Clara County and below the growth rate of the region’s housing stock during this time period.

Between 2015 and 2021, 502 housing units were issued permits in Los Gatos, which represents approximately 81 percent of the RHNA number of 619 units assigned in the 5th Cycle Housing Element. Approximately 66 percent of permits issued in Los Gatos were for above moderate-income housing, 24 percent were for moderate-income housing, and 10 percent were for low- or very low-income housing.

Housing Type
It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2020:
10 More information about this gentrification and displacement data is available at the Urban Displacement Project’s webpage:
https://www.urbandisplacement.org/. Specifically, one can learn more about the different gentrification/displacement typologies shown in Figure 18 at this link: https://www.urbandisplacement.org/sites/default/files/typology_sheet_2018_0.png. Additionally, one can view maps that show which typologies correspond to which parts of a jurisdiction here: https://www.urbandisplacement.org/san-francisco/sf-bay-area-gentrification-anddisplacement.

HCD Revised Draft Revised 2023-2031 Housing Element
10-26 HCD Revised Draft Revised 2023-2031 Housing Element March NovemberSeptember 2023  60 percent of homes in Los Gatos were single-family detached.  13 percent were single-family attached.
 9 percent were small multi-family (two to four units).  18 percent were medium or large multi-family (five or more units).

Between 2010 and 2020, the number of single-family units increased more than multi-family units. Los Gatos has a higher portion of detached single-family homes than other jurisdictions in the region.

The housing stock of Los Gatos is generally in good condition, and few homes require reconstruction or rehabilitation. The high quality of life, desirable location, walkable neighborhoods, and school system have provided financial incentive for property owners to rehabilitate homes and maintain them.

Home Prices
A diversity of homes at all income levels would create opportunities for all members of the Los Gatos community to live in Town.
 Ownership – The largest proportion of homes had a value greater than $2 million in 2019. Home prices increased by 98.4 percent from 2010 to 2020.
 Rental Prices – The typical contract rent for an apartment in Los Gatos was $2,270 in 2019. Rental prices increased by 61 percent from 2009 to 2019. To rent a typical apartment without cost burden, a household would need to make $90,960 per year.11
Cost Burden
The U.S. Department of Housing and Urban Development (HUD) considers housing to be affordable for a household if the household spends less than 30 percent of its income on housing costs. A household is considered “cost-burdened” if it spends more than 30 percent of its monthly income on housing costs, while those who spend more than 50 percent of their income on housing costs are considered “severely cost-burdened.” In Los Gatos, 20 percent of renter households and 16 percent of owner households spend 30 percent to 50 percent of their income on housing, while 22 percent of renter households and 12 percent of owner households are severely cost-burdened and use the majority of their income for housing.

Minority communities are more likely to experience poverty and financial instability as a result of Federal and local housing policies that have historically excluded them from the same opportunities extended to White residents.

As a result, they often pay a greater percentage of their income on housing, and in turn, are at a greater risk of housing insecurity.
“Other Race” or “Multiple Races, Non-Hispanic” residents are the most cost-burdened, with 28 percent spending 30 to 50 percent of their income on housing, and Hispanic or Latinx residents are the most severely costburdened, with 22 percent spending more than 50 percent of their income on housing.

Neighborhood
100 percent of residents in Los Gatos live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while none live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors.12
11 Note that contract rents may differ significantly from, and are often lower than, current listing prices. 12 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website:
https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.

10. Housing Element
November September March 2023 HCD Draft Revised Draft 2023-2031 Housing Element 10-27

10.2.6 Special Housing Needs
Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their specific housing circumstances. In Los Gatos, nine percent of residents have a disability and may require accessible housing. Additionally, six percent of Los Gatos households are larger households with five or more people, and likely need larger housing units with three bedrooms or more. Eight percent of households are female-headed families, which are often at greater risk of housing insecurity.

Large Households
Large households, with five or more persons, often have different housing needs than smaller households. If a town or city’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. Large families are generally served by housing units with three or more bedrooms, of which there are 7,760 units in Los Gatos, as shown in Figure 10-11. Among these large units, most are owner-occupied, and few are renter-occupied, indicating the Town’s rental housing stock lacks larger apartments.

Figure 10-11 Housing Units by Number of Bedrooms and Tenure, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Female-Headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly female-headed households, who may be supporting children or a family with only one income. Female-headed households with children may face particular housing challenges, with gender inequality resulting in lower wages for women.

Moreover, the added need for childcare can make finding a home that is affordable more challenging.

In Los Gatos, the largest proportion of households is Married-Couple Family Households at 58 percent of the total, while Female-Headed Family Households make up 8 percent of all households. Additionally, 36 FemaleHeaded Households with Children (eight percent) fell in the Below Poverty Level category, while 26 FemaleHeaded Households without Children (five percent) fell in the Below Poverty Level category.