Los Gatos City Council
February 6, 2024

IMPORTANT NOTICE
This is a hybrid meeting and will be held in-person at the Town Council Chambers at 110 E. Main Street and virtually through Zoom Webinar (log-in information provided below). Members of the public may provide public comments for agenda items in-person or virtually through the Zoom Webinar by following the instructions listed below. The live stream of the meeting may be viewed on television and/or online at www.LosGatosCA.gov/TownYouTube.

HOW TO PARTICIPATE
To provide oral comments in real-time during the meeting:
 Zoom Webinar (Online): Join from a PC, Mac, iPad, iPhone or Android device. Please click this URL to join: https://losgatoscagov.zoom.us/j/87990205790?pwd=dmpamPBcXdCETViBBFE2ye6LqQV3DA.AJrjhk5XGKkX_b2X Passcode: 025968 You can also type in 87990205790 in the “Join a Meeting” page on the Zoom website at https://zoom.us/join and use passcode 025968. o When the Mayor announces the item for which you wish to speak, click the “raise hand” feature in Zoom. If you are participating by phone on the Zoom app, press *9 on your telephone keypad to raise your hand.
 Telephone: Please dial (877) 336-1839 for US Toll-free or (636) 651-0008 for US Toll. (Conference code: 1052180)
o If you are participating by calling in, press #2 on your telephone keypad to raise your hand.
 In-Person: Please complete a “speaker’s card” located on the back of the chamber benches and return it to the Town Clerk before the meeting or when the Mayor announces the item for which you wish to speak.

NOTE: Comments will be limited to three (3) minutes or less at the Mayor’s discretion.

If you are unable to participate in real-time, you may email to [email protected] the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment). All comments received will become part of the record.

Deadlines to submit written comments are as follows:
 11:00 a.m. the Thursday before the Council meeting for inclusion in the agenda packet.  11:00 a.m. the Monday before the Council meeting for inclusion in an addendum.  11:00 a.m. on the day of the Council meeting for inclusion in a desk item.

Persons wishing to make an audio/visual presentation must submit the presentation electronically to [email protected] no later than 3:00 p.m. on the day of the Council meeting.

TOWN OF LOS GATOS

AMENDED COUNCIL MEETING AGENDA
FEBRUARY 06, 2024
110 EAST MAIN STREET AND TELECONFERENCE

TOWN COUNCIL CHAMBERS
7:00 PM
Mary Badame, Mayor
Matthew Hudes, Vice Mayor
Rob Moore, Council Member
Rob Rennie, Council Member
Maria Ristow, Council Member

CALL MEETING TO ORDER

ROLL CALL
APPROVE REMOTE PARTICIPATION (This item is listed on the agenda in the event there is an emergency circumstance requiring a Council Member to participate remotely under AB 2449 (Government Code 54953)).

PLEDGE OF ALLEGIANCE

CLOSED SESSION REPORT

COUNCIL / MANAGER MATTERS

ANNOUNCEMENT OF FINANCE COMMISSION SELECTION BY VICE MAYOR HUDES AND COUNCIL

MEMBER MOORE
CONSENT ITEMS (Items appearing on the Consent Items are considered routine Town business and may be approved by one motion. Any member of the Council may request to have an item removed from the Consent Items for comment and action. Members of the public may provide input on any or multiple Consent Item(s) when the Mayor asks for public comments on the Consent Items. If you wish to comment, please follow the Participation Instructions contained on Page 1 of this agenda.

If an item is removed, the Mayor has the sole discretion to determine when the item will be heard.)

1. Approve Closed Session Minutes of the January 16, 2024 Town Council Meeting.

2. Approve Minutes of the January 16, 2024 Town Council Meeting.

3. Authorize the Town Manager to Execute a Notice of Completion and Certificate of Acceptance for Specified Improvements Completed by SummerHill N40 LLC for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and Authorize the Town Clerk to Submit for Recordation

4. Adopt a Resolution Remanding Decision to Deny a Fence Height Exception Request at 124 Garden Hill Drive for the Construction of a Six-Foot Tall Fence Located Within the Required Front Yard Setback, Street Side Yard Setback, and Corner Sight Triangle on Property Zoned R-1:8 to the Planning Commission for Further Consideration. APN 424- 23-084. Fence Height Exception Application FHE-23-005. Categorically Exempt Pursuant to CEQA Guidelines Section 15303: New Construction or Conversion of Small Structures and Section 15301: Existing Facilities.

Property Owner: Rushikesh Kulkarni. Applicant/Appellant: Martin Lettunich. Project Planner: Ryan Safty.
*5. Authorize $10,000 from the County of Santa Clara County Grant for Unhoused Los Gatos Residents to Be Used for the Hotel Program
VERBAL COMMUNICATIONS (Members of the public are welcome to address the Town Council on any matter that is not listed on the agenda and is within the subject matter jurisdiction of the Town Council. The law generally prohibits the Town Council from discussing or taking action on such items. However, the Council may instruct staff accordingly. To ensure all agenda items are heard, this portion of the agenda is limited to 30 minutes. In the event additional speakers were not able to be heard during the initial Verbal Communications portion of the agenda, an additional Verbal

Communications will be opened prior to adjournment. Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)
OTHER BUSINESS (Up to three minutes may be allotted to each speaker on any of the following items.)

6. Review and Discuss the Proposed Revisions to the Draft Revised 2023-2031 Housing Element. Location: Town-Wide. General Plan Amendment Application GP-22-003.

7. Adopt a Resolution to Set a Date for Consideration of the Reorganization of an Uninhabited Area Designated as Blackberry Hill Road No. 06, Approximately 2.1 Acres on Property Pre-Zoned HR-2½. APN 532-25-011.

Annexation Application AN23-001. Project Location: 15405 Blackberry Hill Road. Property Owner/Applicant: Maurice Brewster.

8. Receive Report and Provide Input on Town of Los Gatos Street Tree Program

9. Receive a Status Report on Capital Improvement Projects and Provide Direction for the Fiscal Year 2024/25 – 2028/29 Priorities
ADJOURNMENT (Council policy is to adjourn no later than midnight unless a majority of Council votes for an extension of time.)
ADA NOTICE In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Clerk’s Office at (408) 354- 6834. Notification at least two (2) business days prior to the meeting date will enable the Town to make reasonable arrangements to ensure accessibility to this meeting. [28 CFR §35.102-35.104] *Agenda was amended to add Item 5

110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 02/06/2024
ITEM NO: 1
DRAFT
Minutes of the Town Council Special Meeting – Closed Session Tuesday, January 16, 2024
The Town Council of the Town of Los Gatos conducted a Special Meeting in-person and utilizing teleconferencing means on Tuesday, January 16, 2024, at 5:15 p.m. to hold a Closed Session to discuss anticipated litigation and real property negotiations.

MEETING CALLED TO ORDER AT 5:16 P.M.

ROLL CALL

Present: Mayor Mary Badame, Vice Mayor Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie, and Council Member Maria Ristow.

Absent: None

VERBAL COMMUNICATIONS (ONLY ON ITEMS ON THE AGENDA)
Jim Foley
- Explained the challenging office market, identified potential tenants for the Forbes Mill and Tait properties, and requested an extension to secure tenants.

THE TOWN MOVED TO CLOSED SESSION ON THE FOLLOWING ITEM:

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION – Significant exposure to litigation pursuant to Government Code Section 54956.9(e)(1): 1 case. (E-mail from Ben Eilenberg threatening litigation is available in the Town Attorney’s office.)

2. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION – Significant exposure to litigation pursuant to Government Code Section 54956.9(e)(1): 1 case.

3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) a. Property: 4 Tait Avenue
Negotiating Parties: Town of Los Gatos and Imwalle and Associates Negotiator: Laurel Prevetti, Town Manager and Donald Imwalle To Be Negotiated: Terms of purchase, sale, exchange or lease b. Property: 75 Church Street
Negotiating Parties: Town of Los Gatos and Imwalle and Associates Negotiator: Laurel Prevetti, Town Manager and Donald Imwalle Negotiations: Terms of purchase, sale, exchange or lease Item #3 was continued to the next available closed session meeting.

PAGE 2 OF 2
SUBJECT: Draft Minutes of the Special Town Council Meeting of January 16, 2024 DATE: January 18, 2024
The Town Council reconvened in open session. The Town Attorney stated there was no reportable action.

ADJOURNMENT
The meeting adjourned at 6:49 p.m.

Attest: Submitted by:
___________________________ ___________________________ Jenna De Long, Deputy Town Clerk Laurel Prevetti, Town Manager

110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 02/06/2024
ITEM NO: 2
DRAFT
Minutes of the Town Council Meeting
Tuesday, January 16, 2024
The Town Council of the Town of Los Gatos conducted a regular meeting in-person and utilizing teleconferencing means on Tuesday, January 16, 2024, at 7:00 p.m.

MEETING CALLED TO ORDER AT 7:02 P.M.

ROLL CALL

Present: Mayor Mary Badame, Vice Mayor Matthew Hudes, Council Member Rob Moore, Council Member Rob Rennie, Council Member Maria Ristow.

Absent: None

PLEDGE OF ALLEGIANCE
Council Member Rennie led the Pledge of Allegiance. The audience was invited to participate.

PRESENTATIONS
Mayor Badame presented commendations to outgoing commissioners.

CLOSED SESSION REPORT
Gabrielle Whelan, Town Attorney, stated the Town Council met in closed session to discuss two items of potential litigation pursuant to Government Code Section 54956.9e(1) and to discuss real property negotiations pursuant to Government Code Section 54956.8 and stated there was no reportable action.

COUNCIL/TOWN MANAGER REPORTS
Council Matters
- Vice Mayor Hudes stated he participated in the Foundation for Older Adults to Thrive Initiatives and Publicity Committee meeting, and two Foundation for Older Adults to Thrive Executive Committee meetings; met with a resident regarding Senate Bill 9; participated in a Finance Commission meeting; toured the Los Altos Community Center; participated in a Foundation for Older Adults to Thrive meeting; attended a screening of Eating Our Way to Extinction put on by Plant Based Advocates; attended a Diversity, Equity, and Inclusion Commission Meeting; met with Tyler Taylor of Successful Aging Solutions & Community Consulting (SASCC); and looked at property located at 124 Garden Hill Road. - Council Member Rennie stated he met with a Housing Element Advisory Board (HEAB) member; attended a Silicon Valley Clean Energy Authority (SVCEA) Ad Hoc CEO Advisory Committee meeting; met with the auditors for Valley Transportation Authority (VTA) as the Chair of Policy Advisory Committee; had a one-on-one with the outgoing SVCEA CEO;

PAGE 2 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 16, 2024 DATE: January 16, 2024
attended a Finance Commission meeting; met with staff members of SVCEA; attended a SVCEA Board meeting; met with the Chair of Historic Preservation Committee (HPC). - Council Member Moore stated he attended the St. Luke’s Food Pantry; toured the Los Altos Community Center; attended a screening of Eating Our Way to Extinction put on by Plant Based Advocates; hosted his community coffee; met with architects, developers and residents; attended the Heart-to-Heart Conference; attended a West Valley Sanitation District Authority (WVSDA) meeting; stated he will host an informal happy hour. - Council Member Ristow stated she met with two members of the HEAB; met with people interested in applying for Town Commissions, architect Jay Plett and his client, and residents to discuss several issues; observed the January Finance Commission meeting; attended the St. Vincent de Paul monthly meeting; stated she is looking forward to upcoming HEAB meeting and representing Los Gatos on the VTA Policy Advisory Committee.
- Mayor Badame stated she participated in a meeting with Los Gatos Leaders at Hotel Los Gatos; attended a meeting of the Finance Commission as an observer, Town Boards, Commissions and Committees orientations, ribbon cutting of Hotel Los Gatos, and the Leadership Los Gatos Community Connections session.

Manager Matters
- Announced a mid-cycle Board, Commission, and Committee recruitment will open soon; stated there are two opening for the Finance Commission, one opening for the Diversity, Equity, Inclusion, Commission for a Los Gatos business owner/resident seat, and other opportunities will be available; and stated interviews are tentatively scheduled for March 19, 2024, at 5:00 p.m. and more information can be found on the Town Clerk webpage.

CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION)

1. Approve Town Council Closed Session Minutes of December 19, 2023.

2. Approve Town Council Study Session Minutes of December 19, 2023.

3. Approve Council Meeting Minutes of December 19, 2023.

4. Adopt a Resolution to Extend the Term of the Housing Element Advisory Board.

RESOLUTION 2024-001

5. Authorize the Town Manager to Execute a Six-Year Agreement for Services with New Image Landscape Co. for Landscape Maintenance Services for a Total Agreement Amount Not to Exceed $846,932 Plus Allowable Increase Adjustments Made for Consumer Price Index (CPI) Beginning in Year 2 of Contract.

6. Rescind Resolution 2023-063 and Adopt a Revised Resolution Making Determinations and Approving the Reorganization of an Uninhabited Area Designated as Los Gatos Boulevard No. 20, Approximately 0.521 Acres on Property Pre-Zoned R-1:8. APN 523-01-001.

Annexation Application AN22-001. Project Location: 15810 Los Gatos Boulevard. Property Owner/Applicant: Jesus Ching and Kathleen Ban. RESOLUTION 2024-002

7. Authorize the Town Manager to Execute the Following Agreements with San José Conservation Corps:
a. Episodic Support for Winter Storm Response in an Amount Not to Exceed $15,000 and

PAGE 3 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 16, 2024 DATE: January 16, 2024
b. Parks-Related Support Staffing in an Amount Not to Exceed $87,100.

8. Receive the Monthly Financial and Investment Report for November 2023.

9. Authorize the Town Manager to Negotiate and Execute a Lease Agreement with Candler for LTFJ S Corp for 41 North Santa Cruz Avenue, in Substantially the Form Presented for a 23-Month Initial Term with One Option to Extend for an Additional 24 Months.

10. Authorize the Town Manager to Negotiate and Execute a Fifth Amendment to a Parking Lot Lease with Frontier California Inc. (formerly Verizon), in Substantially the Form Presented, to Extend the Lease for an Additional Five Years in an Amount Not to Exceed $363,146 Over Those Five Years.

Rob Moore stated he will recuse himself from Item 7 due to San José Conservation Corps being his employer.

Mayor Badame opened public comment.

No one spoke.

Mayor Badame closed public comment.

MOTION: Motion by Council Member Ristow to approve consent items 1-10. Seconded by Vice Mayor Hudes.

VOTE: Motion passed unanimously; Council Member Moore recused from Item 7.

VERBAL COMMUNICATIONS
Chris Wiley
- Requested Council make a symbolic gesture to “bury the hatchet.” Joseph Enz, Friends of the Los Gatos Creek
- Provided positive comments about the Town’s homeless community.

Marilee Ankaitis
- Commented on concerns with parking in the Olive Zone and on Villa Avenue and the monitoring of the parking permits.

Phillipp Bosshard
- Commented on concerns with parking on Villa Avenue and the Olive Zone.

OTHER BUSINESS

11. Review and Discuss the Proposed Revisions to the Draft Revised 2023-2031 Housing Element. Location: Town-Wide. General Plan Amendment Application GP-22-003.

Erin Walters, Associate Planner, presented the staff report.

PAGE 4 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 16, 2024 DATE: January 16, 2024
Mayor Badame opened public comment.

Chris Bajorek
- Commented on concerns with Housing Element Plan process.

Lee Quintana
- Commented on the California Department of Housing and Community Development’s (HCD) concerns with accessibility and mobility and made suggestion for possible rezoning.

Susan Burnett
- Commented on concerns with availability of HCD staff and builders’ remedy.

Rich
- Commented on concerns with proposed project building heights, traffic, and infrastructure.

Tony Alarcon
- Commented on providing pre-approved Accessory Dwelling Unit plans, allowing boarding houses on religious sites, and providing communal living.

Mayor Badame closed public comment.

MOTION: Motion by Vice Mayor Hudes to use the Los Altos program 6G wherever possible, adopt the concepts and the language that are in Los Altos program (in Attachment 5). Seconded by Mayor Badame.

VOTE: Motion fails 2-3. Council Members Ristow, Rennie, and Moore voted no.

MOTION: Motion by Council Member Moore to bundle the steps to increase housing mobility similar to Los Altos in the Town’s Housing Element, and modify program J to change the language from “in all neighborhoods” to “in a variety of neighborhoods.” Seconded by Council Member Ristow.

VOTE: Motion passed 3-2. Vice Mayor Hudes and Mayor Badame voted no.

Recess 9:15 p.m.

Reconvene 9:25 p.m.

Council continued discussion on the proposed revisions to the Draft Revised 2023-2031 Housing Element.

MOTION: Motion by Vice Mayor Hudes to address comment 1b in the Desk Item by following the example of Los Altos Hills, specifically with table 49 and table 50. Seconded by Council Member Moore.

VOTE: Motion passed unanimously.

PAGE 5 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 16, 2024 DATE: January 16, 2024

PUBLIC HEARINGS

12. Conduct a Public Hearing for the Town’s Transportation Impact Fee Program to:
a. Adopt a Resolution to Adopt the Transportation Impact Nexus Study Dated November 2023 (including the Project List – Appendix 1 Which Serves as the Town’s Transportation Capital Improvement Plan); RESOLUTION 2024-003 b. Adopt a Resolution to Update a Transportation Impact Fee to Replace the Town’s Existing Traffic Impact Mitigation Fee; RESOLUTION 2024-004 c. Introduce an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos Amending Town Code Section 15, Article VII ‘Traffic Impact Mitigation Fees’”;and d. Adopt a Resolution to Modify Town Council Policy 1-08: “Transportation Impact Policy.” RESOLUTION 2024-005
Nicolle Burnham, Parks and Public Works Director, presented the staff report.

Mayor Badame opened public comment.

Colin Corbett
- Inquired about the types of infrastructure in place.

Mayor Badame closed public comment.

MOTION: Motion by Council Member Ristow to adopt a resolution to adopt the Transportation Impact Nexus Study dated November 2023 (including the Project List – Appendix 1 Which Serves as the Town’s Transportation Capital Improvement Plan) (attachment 1); adopt a resolution to update a Transportation Impact Fee to replace the Town’s Existing Traffic Impact Mitigation Fee (attachment 2); Introduce an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos Amending Town Code Section 15, Article VII ‘Traffic Impact Mitigation Fees’” (attachment 3); and adopt a resolution to modify Town Council Policy 1-08:
“Transportation Impact Policy.” Seconded by Council Member Moore.

VOTE: Motion passed 4-1. Mayor Badame voting no.

MOTION: Motion by Council Member Rennie to take the remaining agenda items in the following order: 13, 17, 14, 15, 16. Seconded by Council Member Moore.

VOTE: Motion passed unanimously.

13. Weed Abatement Public Hearing to Consider Objections to the Proposed Abatement of Hazardous Vegetation (Weeds) for Properties Listed on the 2024 Weed Abatement Program Commencement Report and Order the Abatement.

PAGE 6 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 16, 2024 DATE: January 16, 2024
Meredith Johnston, Administrative Technician for the Parks and Public Works Department, presented the staff report.

Mayor Badame opened public comment.

Colin Corbett
- Objected to the fees due to purchasing the house after the inspection was complete and conforming with the abatement after purchase.

Mayor Badame closed public comment.

MOTION: Motion by Council Member Moore to remove 15970 Quail Hill Road from the abatement list and move forward with the rest of the listed properties. Seconded by Council Member Rennie.

VOTE: Motion passed unanimously.

17. Consider an Appeal of a Planning Commission Decision to Deny a Fence Height Exception Request at 124 Garden Hill Drive for the Construction of a Six-Foot Tall Fence Located Within the Required Front Yard Setback, Street Side Yard Setback, and Corner Sight Triangle on Property Zoned R-1:8. APN 424-23-084. Fence Height Exception Application FHE-23-005. Categorically Exempt Pursuant to CEQA Guidelines Section 15303: New Construction or Conversion of Small Structures and Section 15301: Existing Facilities.

Property Owner: Rushikesh Kulkarni. Applicant/Appellant: Martin Lettunich. Project Planner: Ryan Safty.

Jennifer Armer, Planning Manager, presented the staff report.

Mayor Badame opened public comment.

Rushikesh Kulkarni, applicant, gave opening comments in support of the appeal.

Rushikesh Kulkarni, applicant, gave closing comments.

Mayor Badame closed public comment.

MOTION: Motion by Council Member Ristow to remand the item back to the Planning Commission, with the findings that the applicant is willing to compromise that would allow for the corner site line to be visible and direct the Planning Commission to determine what should happen with the lower part of the fence and how to accommodate safety concerns. AMENDMENT: Add there was no error or abuse of discretion by the Planning Commission, the direction was based on new information that the applicant provided a potential compromise, continue this item to a date

PAGE 7 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 16, 2024 DATE: January 16, 2024
certain of February 6, 2024, and direct staff to prepare a resolution to remand the item back to the Planning Commission with findings as previously discussed.

Seconded by Vice Mayor Hudes.

VOTE: Motion passed unanimously.

OTHER BUSINESS

14. Consider the Following Actions:
a. Receive the Information Provided in the Police Services Report: July – December 2023, b. Authorize the Town Manager to Execute an Agreement with Meliora Public Safety Consulting to Conduct an Organizational Assessment and Develop a Data Analysis Toolkit in an Amount Not to Exceed $80,000, and
c. Approve an Expenditure Budget Adjustment in the Amount of $80,000 from the Available General Fund Capital/Special Projects Reserve.

Jamie Field, Police Chief, presented the staff report.

Mayor Badame opened public comment.

MOTION: Motion by Council Member Hudes to continue the meeting to 12:15 a.m. Seconded by Council Member Ristow.

VOTE: Motion passed unanimously.

Lee Fagot
- Commended the Los Gatos-Mote Sereno Police Department and commented on concerns with noise levels, electric bicycle safety, and the Governor recommendation on traffic speed enforcement.

Michael Silva
- Commented on safety concerns at the Blossom Hill Road and North Santa Cruz Avenue intersection.

Mayor Badame closed public comment.

MOTION: Motion by Council Member Rennie to receive the information provided in the Police Services Report: July – December 2023, authorize the Town Manager to execute an agreement with Meliora Public Safety Consulting to conduct an organizational assessment and develop a Data Analysis Toolkit in an amount not to exceed $80,000, and approve an Expenditure Budget Adjustment in the amount of $80,000 from the available General Fund Capital/Special Projects Reserve. Seconded by Council Member Ristow.

VOTE: Motion passed unanimously.

PAGE 8 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 16, 2024 DATE: January 16, 2024

15. Consider Whether the Town Should Retain a Separate Building Board of Appeals and Provide Direction to Staff.

Gabrielle Whelan, Town Attorney, presented the staff report.

Mayor Badame opened public comment.

No one spoke.

Mayor Badame closed public comment.

MOTION: Motion by Council Member Ristow to designate the Town Council to assume the duties of the Building Board of Appeal and disband the existing board. Seconded by Council Member Moore.

VOTE: Motion passed unanimously.

MOTION: Motion by Council Member Hudes to extend the meeting until 12:30 p.m. Seconded by Council Member Moore.

VOTE: Motion passed unanimously.

16. Provide Direction Regarding Potential Amendments to the Historic Preservation Committee Ordinance and Enabling Resolution.

Gabrielle Whelan, Town Attorney, presented the staff report.

Mayor Badame opened public comment.

No one spoke.

Mayor Badame closed public comment.

MOTION: Motion by Vice Mayor Hudes to adopt option two in the staff report, without the recusal requirement. [Retain Town Code Section 29.80.255(a) which provides that Planning Commissioners serve on the Historic Preservation Committee, revise Town Code Section 29.80.227 to provide that the Historic Preservation Committee is advisory in nature]. Seconded by Mayor Badame.

VOTE: Motion passed 4-1. Council Member Ristow voted no.

PAGE 9 OF 9
SUBJECT: Draft Minutes of the Town Council Meeting of January 16, 2024 DATE: January 16, 2024

ADJOURNMENT
The meeting adjourned at 12:26 a.m.

Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Town Clerk

PREPARED BY: James Watson
Senior Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney Finance Director, and Parks and Public Works Director, and Town Engineer
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 02/06/2024
ITEM NO: 3
DATE: January 26, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Notice of Completion and Certificate of Acceptance for Specified Improvements Completed by SummerHill N40 LLC for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and Authorize the Town Clerk to Submit for Recordation
RECOMMENDATION:

Authorize the Town Manager to execute a Notice of Completion and Certificate of Acceptance (Attachment 1) for specified improvements completed by SummerHill N40 LLC (“SummerHill”) for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and authorize the Town Clerk to submit for recordation.

BACKGROUND:

On August 1, 2017, the Town Council adopted Resolution 2017-045 approving the construction of a mixed-use development consisting of 320 residential units, approximately 66,800 square feet of commercial space, associated off-site improvements, and a vesting tentative map on property zoned as part of North 40 Specific Plan.

On September 7, 2018, the Town Council approved the final map for Tract 10441 – North 40 Phase 1, accepting the dedications, and authorizing the Town Manager to execute a Subdivision Improvement Agreement (“Agreement”) (Attachment 2), and various other documents to support implementation of the approved project.

PAGE 2 OF 4
SUBJECT: Authorize the Town Manager to Execute a Notice of Completion and Certificate of Acceptance for Specified Improvements Completed by SummerHill N40 LLC for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and Authorize the Town Clerk to Submit for Recordation
DATE: January 26, 2024
BACKGROUND (continued):

On October 4, 2018, the Town executed the Agreement with SummerHill for the construction of certain improvements required by various Conditions of Approval (“Required Improvements”) stipulated in the Architectural and Site Plan Review process. The Agreement stipulated 18 “Plans”, identified as “a” through “r”, to be prepared by SummerHill to complete the Required Improvements, and they complete repaving of certain sections of Lark Avenue and Los Gatos Boulevard.

The Agreement required SummerHill to furnish to the Town security bonds to guarantee their performance in executing the required work. On June 20, 2023, Town Council accepted project improvements listed in Table 1 below.

Table 1. Bonded Improvements Completed by Summerhill and Previously Accepted Plan ID1 Description of Improvement Bond Value
d
Los Gatos North 40 Tract 10441 In tract Rough Grading Plans dated August 14, 2018 by Mackay & Somps $6,430,000
e Los Gatos North 40 Phase 1 Offsite Los Gatos Blvd Phase A Improvement Plans dated July 27, 2018 by Mackay & Somps $710,000
f
Los Gatos Blvd & Walker Street Traffic Signal Plan dated August 2018 by Fehr & Peers
g
Walker Street & Los Gatos Blvd Phase A Signing and Striping Plan dated August 2018 by Fehr & Peers
m
Los Gatos North 40 Offsite Lark Avenue Caltrans Right of Way Improvement Plans dated March 12, 2018 including plans by Mackay & Somps, Finn Design Group, Van Dorn Abed, Fehr & Peers, and Giacalone
$799,000
r Los Gatos North 40 Phase 1 Off Site Storm and Sanitary Sewer Improvement Plans dated September 13, 2017 $401,000
No ID North 40 Phase 1 Offsite Lark and Los Gatos Blvd - Pavement Replacement $3,262,000
Note 1: As defined in the Subdivision Improvement Agreement between Town of Los Gatos and Summerhill.

PAGE 3 OF 4
SUBJECT: Authorize the Town Manager to Execute a Notice of Completion and Certificate of Acceptance for Specified Improvements Completed by SummerHill N40 LLC for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and Authorize the Town Clerk to Submit for Recordation
DATE: January 26, 2024
DISCUSSION:

SummerHill has now completed nine additional projects described within the Subdivision Improvement Agreement. Staff have inspected the work and finds the work complete with proper documentation submitted. Table 2 summarizes the projects proposed to be accepted with this action. Still remaining are projects referenced as “a”, “b”, and “c” in the Subdivision Improvement Agreement.

Table 2. Bonded Improvements Completed by Summerhill as of December 2023 in Association with the Phase 1 North 40 Project
Plan ID1 Description of Improvement Bond Value
h
Los Gatos North 40 Phase 1 Offsite Lark Avenue and Los Gatos Boulevard Improvement Plans dated June 4, 2018 by Mackay & Somps
$1,938,000
i
North 40 Phase 1 Public Street Lighting Plans dated June 2018 byGiacalone
j
North 40 Offsite Lark Avenue and Los Gatos Blvd Landscaping Plans dated June 1, 2018 by Van Dorn Abed
k Lark Ave & Los Gatos Blvd Traffic Signal Plans dated June 2018 by Fehr & Peers
l Lark Ave & Los Gatos Blvd Signing and Striping Plans dated June 2018 by Fehr & Peers
n Los Gatos North 40 Phase 1 Lark Avenue Bike Lane
Improvement Plans dated March 15, 2018 by Mackay & Somps $390,000
o North 40 Offsite Lark Avenue Landscape Construction
Drawings dated June 6, 2018 by Van Dorn Abed
p Lark Ave & Oka Road Traffic Signal Plans dated June 2018 by Fehr & Peers
q Lark Avenue Signing and Striping Plans dated June 2018 by Fehr & Peers
Note 1. As defined in the Subdivision Improvement Agreement between Town of Los Gatos and Summerhill. Plans a through c are not complete at this time and are not presented in either Table 1 or Table 2.

The requested Council action would initiate a two-year warranty period for the accepted work.

SummerHill would provide the Town a two-year Guarantee and Warranty Security Bond in the amount of 10 percent of the original value of the bonds. The Guarantee and Warranty Security Bond will provide for the repair and/or replacement of defective materials and workmanship in the completed improvements. This two-year Guarantee and Warranty Security Bond is

PAGE 4 OF 4
SUBJECT: Authorize the Town Manager to Execute a Notice of Completion and Certificate of Acceptance for Specified Improvements Completed by SummerHill N40 LLC for the North 40 Phase 1 Development at Lark Avenue and Los Gatos Boulevard and Authorize the Town Clerk to Submit for Recordation
DATE: January 26, 2024
DISCUSSION (continued):
required to be submitted prior to the Town’s release of the Faithful Performance and Labor and Materials bonds.

CONCLUSION:

Staff is recommending that the Town Manager be authorized to execute a Notice of Completion and Certificate of Acceptance for specified improvements completed for the Phase 1 North 40 Project.

FISCAL IMPACT:

The improvements within the public right-of-way are dedicated to and accepted by the Town through the subdivision process and the approval of the final map. These improvements become part of the Town’s infrastructure to be maintained after the expiration of the two-year warranty period.

ENVIRONMENTAL ASSESSMENT:

An Environmental Impact Report (EIR) for the project was certified by Town Council on January 20, 2015.

Attachments:

1. Notice of Completion and Certificate of Acceptance

2. Subdivision Improvement Agreement

Recording Requested by:

TOWN OF LOS GATOS
WHEN RECORDED MAIL TO:

TOWN CLERK

TOWN OF LOS GATOS
110 E MAIN ST
LOS GATOS, CA 95030
______________________________________________________________________________ (SPACE ABOVE BAR FOR RECORDER’S USE)
(RECORD WITHOUT FEE UNDER GOVERNMENT CODE SECTIONS 27383 AND 6103)

TYPE OF RECORDING

NOTICE OF COMPLETION AND CERTIFICATE OF ACCEPTANCE
NORTH 40 – PHASE 1

LARK AVENUE AND LOS GATOS BOULEVARD, LOS GATOS, CA
TO WHOM IT MAY CONCERN:

I do hereby certify that SummerHill N40 LLC completed the work secured with Improvement Securities (4) and (7) as defined in the Subdivision Improvement Agreement Section 6.a., specifically located in the TOWN OF LOS GATOS, County of Santa Clara, State of California executed October 4, 2018. The work was completed in December 2023, and approved and accepted on February 6, 2024.

Bond No.: 748730 and 748733
Date: October 11, 2018

INTERNATION FIDELITY INDEMNITY COMPANY
One Network Center, 20th Floor, Newark, New Jersey 07102-5207

TOWN OF LOS GATOS
By: __________________________________
Laurel Prevetti, Town Manager
Acknowledgement Required

ATTACHMENT 1

Recording Requested by:

TOWN OF LOS GATOS
WHEN RECORDED MAIL TO:

CLERK ADMINISTRATOR

TOWN OF LOS GATOS
110 E MAIN ST
LOS GATOS, CA 95030
24041269
Regina Alcomendras
Santa Clara County - Clerk-Recorder
10/11/2018 01:23 PM

CONFORMED COPY
Copy of document recorded.

Has not been compared with original.
{SPACE ABOVE BAR FOR RECORDER'S USE)
(RECORD WITHOUT FEE UNDER GOVERNMENT CODE SECTIONS 27383 and 6103)

SUBDIVISION IMPROVEMENT AGREEMENT
North 40 Phase 1
Los Gatos, CA 95032
APNs: 424-07-024 through 424-07-027, 424-07-031 through 424-07-035, 424-07-070, 424-07-084 through 424-07-086, 424-07-090, and 424-07-113 through 424-07-114

SUBDIVISION IMPROVEMENT AGREEMENT

BETWEEN

THE TOWN OF LOS GATOS
AND
SUMMERHILL N40 LLC

LOS GATOS, CALIFORNIA

EXECUTION COPY
This agreement, made and entered into effective upon the last date this document is signed by the parties hereto, by and between the TOWN OF LOS GATOS, a municipal corporation of the State of California, hereinafter "Town," and SUMMERHILL N40 LLC, after this called "Subdivider," whose principal place of business is 3000 Executive Parkway, Suite 450, San Ramon, CA 94583.

WITNESSETH
WHEREAS, a Final Map (hereinafter "Map") of Tract 10441 (the "Subdivision") owned by Subdivider and commonly known as "North 40 Phase 1," has been filed with the Town, which Map is incorporated herein by reference;
WHEREAS, the Conditions of Approval of the Subdivision Application (A&S Cond. 163) require the Subdivider to construct and complete certain improvements according to the following plans and specifications ("Improvement Plans" or "Plans"):
a. Los Gatos North 40 - Phase I Tract 10441 Improvement Plans dated August 24, 2018 by Mackay & Somps
b. North 40- Onsite Private Street Lighting Plans dated August 23, 2018 byGiacalone c. North 40 lntract/Phase One Landscape Construction Plans dated August 24, 2018 by Van Dorn Abed
d. Los Gatos North 40 Tract 10441 In tract Rough Grading Plans dated August 14, 2018 by Mackay & Somps
e. Los Gatos North 40 Phase 1 Offsite Los Gatos Blvd Phase A Improvement Plans dated July 27, 2018 by Mackay & Somps
f. Los Gatos Blvd & Walker Street Traffic Signal Plan dated August 2018 by Fehr & Peers g. Walker Street & Los Gatos Blvd Phase A Signing and Striping Plan dated August 2018 by Fehr & Peers
h. Los Gatos North 40 Phase 1 Offsite Lark Avenue and Los Gatos Boulevard Improvement Plans dated June 4, 2018 by Mackay & Somps
i. North 40 Phase 1 Public Street Lighting Plans dated June 2018 byGiacalone j. North 40 Offsite Lark Avenue and Los Gatos Blvd Landscaping plans dated June 1, 2018 by Van Dorn Abed
k. Lark Ave & Los Gatos Blvd Traffic Signal plans dated June 2018 by Fehr & Peers I. Lark Ave & Los Gatos Blvd Signing and Striping Plans dated June 2018 by Fehr & Peers SMHH\54443\1441213.12 1

m. Los Gatos North 40 Offsite Lark Avenue Caltrans Right of Way Improvement Plans dated March 12, 2018 including plans by Mackay & Somps, Finn Design Group, Van Dorn Abed, Fehr & Peers, and Giacalone
n. Los Gatos North 40 Phase 1 Lark Avenue Bike Lane Improvement Plans dated March 15, 2018 by Mackay & Somps
o. North 40 Offsite Lark Avenue Landscape Construction Drawings dated June 6, 2018 by Van Dorn Abed
p. Lark Ave & Oka Road Traffic Signal Plans dated June 2018 by Fehr & Peers q. Lark Avenue Signing and Striping Plans dated June 2018 by Fehr & Peers r. Los Gatos North 40 Phase 1 Off Site Storm and Sanitary Sewer Improvement Plans dated September 13, 2017
The foregoing improvements are hereinafter referred to as "Required Improvements"; WHEREAS, the Subdivider has prepared, and the Town Engineer has substantially approved, Improvement Plans for the completion of the Required Improvements in connection with the Subdivision. The Plans are on file in the Office of the Town Engineer and are incorporated into this agreement by this reference, along with any changes or modifications as may be required by the Town Engineer or designee due to errors, omissions, or changes in conditions;
WHEREAS, Subdividerrecognizes that, by approval of the Map for Subdivision, Town has conferred substantial rights upon Subdivider, including the right to sell, lease, or finance lots and/or condominiums within the Subdivision. As a result, Town will be damaged to the extent of the cost of installation of these Required Improvements by Subdivider's failure to perform its obligations to commence construction of the Required Improvements by the lime established in this agreement. The Town shall be entitled to all remedies available to it pursuant to this agreement and law in the event of default by Subdivider; and WHEREAS, Subdivider has asked Town to review and approve the Map and accept the dedications therein offered, subject to and on condition that the Subdivider, prior to issuance of a building permit for the Required Improvements, enter into this agreement with the Town, and provide the Town with such security for performance and insurance and all other things as required by this agreement; NOW, THEREFORE, to insure satisfactory performance by Subdivider of these obligations, and in consideration of the approval of the Map, the parties now agree as follows:

1. PERFORMANCE OF WORK
Subdivider agrees to furnish, construct and install at Subdivider's own expense the Required Improvements. The Plans and specification of the Required Improvements may be modified by the Subdivider as th.e Subdivision progresses, subject to prior written approval of the Town Engineer.

SMHH\54443\1441213.12 2

2. WORK; SATISFACTION OF TOWN ENGINEER
All the work on the Required Improvements is lo be done at the places, of the materials, and in the manner and at the grades, shown upon approved Plans and specifications and the Town's Ordinances, Improvement Standards and Specifications, to the satisfaction of the Town Engineer.

Work shall be completed within two (2) years from the date of this agreement, subject to extension due to force majeure event under Section 1 0(a).

3. INSPECTION BY TOWN
Subdivider shall at all times provide safe access for inspection by the Town to all parts of the Required Improvements and to all places where the Required Improvements are in preparation.

4. SURVEY MONUMENTS
Subdivider shall install all Subdivision monuments required by law prior to recordation of the Notice of Acceptance.

5. DEDICATION OF EASEMENTS OR RIGHT-OF-WAY
The Town acknowledges that Subdivider has offered lo the Town lo dedicate fee title to all streets subject to public access easement (PAE) shown on the Map.

6. IMPROVEMENT SECURITY
Concurrently with the execution of this agreement, the Subdivider shall furnish the Town:
a. Faithful Performance Security: Pursuant to California Government Code section 66499.3(a) Subdivider shall, before the release of the Map by the Town for filing for record and as a condition precedent to the recordation of it, furnish to the Town and file with the Town Clerk cash, an instrument of credit, or a bond as provided by the Subdivision Map Act, in a form approved by the Town Attorney, securing performance by Subdivider of all work shown on the Plans and completion within the agreed lime. The security shall be in the amount of one hundred percent (100%) of the total estimated cost of the Required Improvements, as determined by the Director. The amount of cash, instrument of creditor bond shall be $20,585,000 based on individual bonds as follows:
(1) North 40 Phase 1 Tract 10441 In tract Private Improvements ($6,655,000)- based on improvement plans (a), (b) and (c) noted on page 1.
(2) North 40 In tract Tract 10441 Rough Grading ($6,430,000)-based on improvement plans (d) noted on page 1.
(3) North 40 Phase 1 Offsite Los Gatos Blvd Phase A Improvements ($710,000) - based on improvement plans (e), (f) and (g) noted on page 1. (4) North 40 Phase 1 Offsite Lark and Los Gatos Blvd Improvements ($1,938,000) - based on improvement plans (h), (i), OJ, (k) and (0 noted on page 1. (5) North 40 Phase 1 Offsite Lark and Los Gatos Blvd - Pavement Replacement ($3,262,000)
(6) North 40 Offsite Lark Avenue Improvements within Caltrans Right-of-Way ($799,000) - based on improvement plans (m) noted on page 1.

SMHH\54443\1441213.12 3

(7) North 40 Offsite Lark Avenue Bike Lane Improvements ($390,000) - based on improvement plans (n}, (o}, (p) and (q) noted on page 1. (8) North 40 Offsite Storm and Sanitary Sewer Improvement Plans ($94,000) - based on improvement plans (r) noted on page 1.
(9) North 40 Offsite Storm and Sanitary Sewer Improvement Plans ($307,000)- based on improvement plans (r) noted on page 1.
b. Payment Security: Subdivider shall furnish to the Town and file with the Town Clerk cash, an instrument of credit, or a bond as provided by the Subdivision Map Act, in a form approved by the Town Attorney, securing the obligations for payment to the contractor, subcontractors and to persons renting equipment or furnishing labor or materials for the completion of the Required Improvements. The security shall be in the amount of one hundred percent (100%) of the total estimated cost of the Required Improvements, as determined by the Director. The amount of cash, instrument of credit or bond shall be $20,585,000 based on the individual bonds described in Section 6(a). c. Guarantee and Warranty Security: It is further agreed that a "guarantee and warranty security" in the amount of ten (10%) percent of the total estimated cost of the Required Improvements for a period of two (2) years following their completion and acceptance by the Town against any defective work or labor done, or defective materials furnished, by the Subdivider. This limitation on the security does not shorten any time during which the Town may act to enforce the Subdivider's obligations under the terms of this agreement, nor shorten any time during which Town may bring an action in an appropriate court regarding the subject or performance of this agreement.
d. Monument Security: It is further agreed that a "monument security" in the amount of one hundred percent ( 100%) of the total estimated cost of the installation of survey monuments in the Subdivision within the period of time specified in the Surveyor's Statement on the approved Final Map. The Monument Bond is included in various other line items within the distributed bonds.
e. Any bonds submitted as security pursuant to this section shall be executed by a surety company authorized to transact a surety business in the State of California. f. No change, alteration, or addition to the terms of this agreement or the Plans and specifications incorporated herein shall in any manner affect the obligation of the sureties, except as otherwise provided by the Subdivision Map Act. g. The securities shall be irrevocable, shall not be limited as to time except as to the two (2) year guarantee and warranty period) and shall provide that they may be released, in whole or part, only upon the written approval of the Director and as provided in Section 7-Release of Security. All securities provided pursuant to this agreement shall expressly obligate the surety for any extension authorized by the Town for Subdivider's completion of the Required Improvements, whether or not the surety is given notice of such an extension by the Town.

7. RELEASE OF SECURITY
a. Guarantee and Warranty Security: Any unused portion of the guarantee and warranty security shall be released two (2) years after acceptance of the Required Improvements by the Town Council. The amount to be released shall first be reduced by the amount deemed necessary by the Town to correct any defects in the Required Improvements that are known or believed by the Town to exist at the end of the guarantee and warranty period.

SMHH\54443\1441213.12 4

b. Payment Security: Security securing the payment to the contractor, his or her subcontractors, and to persons furnishing labor, materials or equipment shall, after acceptance of the work, be reduced to an amount equal to the total timely claimed by all claimants for whom claims of lien have been recorded and notice thereof given in writing to the legislative body (with the balance of the Payment Security being released) and, if no such claims have been timely recorded, the security shall be release in full. c. Faithful Performance Security: The faithful performance security shall be released upon acceptance of the Required Improvements by the Town Council. d. Monument Security: The monument security may be released upon acceptance of the required monument installation by the Director.

8. HOLD HARMLESS
Subdivider does expressly agree to protect, defend, indemnify and hold harmless {hereinafter, "hold harmless") the Town, its Town Council Members, Boards, Commissions, employees and agents (hereinafter, the "Town"), from any and all loss or damage, and from any and all liability, including cost of defense, for any and all loss or damage, and from any and all suits, actions or claims filed or brought by any or all persons or person (hereinafter, "Claim") because of or resulting from the acts by Subdivider of any and all things required of Subdivider by this agreement, or because of or arising or resulting from the failure or omission by Subdivider to do any and all things necessary to and required by this agreement or by law, or arising or resulting from the negligent acts by Subdivider, Subdivider's agents, employees or subcontractors of any and all things required to be done by this agreement, or arising or resulting from any dangerous or defective condition arising or resulting from any of the above said acts or omissions of Subdivider, Subdivider's agents or employees. Subdivider shall not be required to hold harmless (as described above) the Town for Claims caused or arising out of the sole negligence or willful misconduct of the Town.

9. INSURANCE
Subdivider shall furnish to the Town and file with the Town Clerk evidence of, and at all times during the performance of its obligations under this agreement maintain, the insurance described in Exhibit A.

10. TIME EXTENSIONS
a. If performance of this agreement actually should be delayed by inclement weather, riots, strikes, lockouts, fires, earthquakes, floods and conditions resulting therefrom, subcontractor delays, labor shortages, material shortages or delays, Town delays, or for other reasons beyond the control of the Subdivider, the time for the construction of same may be extended by the Town Engineer for such period of time as is reasonable. b. Requests for extension of the commencement and/or completion date shall be in writing and delivered to the Town in the manner hereinafter specified for service of notices. An extension of time, if any, shall be granted only in writing. · c.

In the event the Town extends the time of commencement and/or completion of the Required Improvements, such extension shall be granted in writing by the Town to the Subdivider pursuant to this agreement, and/or without relieving or releasing those providing an improvement security pursuant to this agreement. The surety or sureties, if any, in executing the securities shall be deemed to have expressly agreed to any such extension of time.

SMHH\54443\1441213.12 5

d. In granting any extension of time, the Town may require new or amended improvement security in amounts increased to reflect increases in the costs of constructing the incomplete Required Improvements, taking into account all Required Improvements that have been completed.

11. MAINTENANCE OF PUBLIC INFRASTRUCTURE
The Subdivider shall maintain all Required Improvements (streets, sidewalks, right-of-way, street light, storm drainage facility, sanitary sewer, etc.) in a safe and usable condition at all times during construction. Should any Required Improvements become unsafe, unusable or inoperable because of the Subdivider's activities, the Subdivider shall immediately cease all work on the Subdivision until the public infrastructure is made safe and usable, for which the Subdivider shall be solely responsible. Additionally, notwithstanding acceptance by Town, Subdivider shall maintain and perform or cause to be performed repairs, additions, or corrective work necessitated by Subdivider's omission or deficient performance for one (1) year after acceptance. If the Subdivider fails to act promptly or in accordance with this agreement, or if the exigencies of the situation require repairs or replacements to be made before the Subdivider can be notified, then the Town may, at its option, make the necessary repairs or replacements or perform the necessary work, and Subdivider shall pay the Town the actual cost of such repairs plus fifteen percent ( 15%) within thirty (30) days of the date of billing for such work by Town.

12. DEFAULT BY SUBDIVIDER
a. Default of Subdivider shall include, but not be limited to:
(1) Subdivider's failure to timely commence construction of Required Improvements under this agreement;
(2) Subdivider's failure to complete construction of the Required Improvements within the lime period provided by this agreement or any extensions thereof; (3) Subdivider's failure to timely cure any defect in the Required Improvements during the two (2) year guaranty and warranty period where such failure continues beyond thirty (30) days after written notice thereof from the Town, or if such failure is not susceptible to cure within such thirty (30) day period, Subdivider has not commenced to cure within such thirty (30) day period and does not thereafter continue to diligently proceed to cure; (4) Subdivider's failure to perform substantial construction work for a period of 30 consecutive calendar days after commencement of the work, for reasons other than force majeure events;
(5) Subdivider's insolvency, appointment of a receiver, or the filing of any petition in bankruptcy, either voluntary or involuntary, which Subdivider fails to discharge within 30 days;
(6) The commencement of a foreclosure action against the subdivision or a portion thereof, or any conveyance in lieu or in avoidance of foreclosure; or (7) Subdivider's failure to perform any other obligation under this agreement within thirty (30) days after written notice thereof from the Town, or if such failure is not susceptible to cure within such 30-day period, Subdivider has not commenced to cure within such 30-day period and does not thereafter continue to diligently proceed to cure. b. The Town reserves all remedies available to ii at law or in equity for breach of Subdivider's obligations under this agreement. The Town shall have the right, subject to this Section, to SMHH\54443\1441213.12 6

draw upon or use the appropriate security to mitigate the Town's damages in the event of default by Subdivider. The Town's right to draw upon or use the security is in addition to any other remedy available to Town. The parties acknowledge that the estimated costs and security amounts may not reflect the actual cost of construction of the Improvements and, therefore, Town's damages for Subdivider's default shall be measured by the cost of completing the Required Improvements. The Town may use the sums provided by the securities for the completion of the Required Improvements in accordance with the Plans and specifications contained herein. In the event Subdivider fails to cure any default under this agreement within thirty (30) days after the Town mails written notice of such default to the Subdivider and the Subdivider's surety, Subdivider authorizes Town to perform the obligation for which Subdivider is in default and agrees to pay the entire cost of such performance by the Town. The Town may take over the work and complete the Required Improvements, by contract or by any other method the Town deems appropriate, at the expense of Subdivider.

In such event, the Town, without liability for so doing, may complete the Required Improvements using any of Subdivider's materials, appliances, Plans and other property that are at the work site and that are necessary to complete the Required Improvements.

13. NOTICES
Notices regarding this agreement shall be given as follows and shall be considered effective upon either personal delivery or five (5) days following deposit in the U.S. Mail:

To SUBDIVIDER:

To TOWN:

SummerHill N40 LLC
3000 Executive Parkway, Suite 450
San Ramon, CA 94583
Parks and Public Works Department
Town of Los Gatos
41 Miles Avenue
Los Gatos, California 95030
Any party may change such address by notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address.

14. WAIVER
Waiver of a breach of default under this agreement shall not form a continuing waiver or a waiver of a subsequent breach of the same or any other provision of the agreement.

15. SEVERABILITY
If any term of this agreement is held invalid by a court of competent jurisdiction, the remainder of this agreement shall remain in effect.

16. ENTIRE AGREEMENT AND AMENDMENT
This agreement constitutes the complete and exclusive statement of the agreement between the Town and Subdivider. No verbal agreement or conversation with any officer, agent, or employee of the Town, either before, during or after the execution of this agreement, shall affect or modify any of the terms or obligations contained in the agreement. There are no intended third party beneficiaries to this Agreement.

SMHH\54443\1441213.12 7

17. PAYMENT OF OUTSTANDING FEES
Prior to acceptance of Required Improvements for permanent maintenance by the Town. Subdivider shall pay all outstanding fees that are due in accordance with this agreement and the Town Code of the Town of Los Gatos.

18. ACTIONS TO ENFORCE
If any action at law or equity, including an action for declaratory relief, is brought to enforce or interpret the provisions of this agreement, the prevailing party shall be entitled to reasonable attorneys' fees, expert witness fees and costs, in addition to any other relief to which they may be entitled.

19. REIMBURSEMENT OF ATTORNEYS FEES
In the event of any third party claim or legal challenge to any action taken by the Town with regard to any procedure or aspect of this agreement, including approval or environmental review process, the Town may choose to defend the claim or action with the prior written approval of the Subdivider, the Subdivider, if it has consented to the defense of the claim or action, agrees to reimburse the Town for attorneys' fees, expert witness fees, and any other costs the Town may incur in connection with iis retention of legal counsel, and for any award of court costs and fees against the Town.

20. AGREEMENT BINDS SUCCESSORS
This agreement pertains to and runs with the land benefited by the privileges it grants and binds the successors in interest of the parties to this agreement.

21. MORTGAGE PROTECTION
No breach of this agreement shall defeat or render invalid the lien of any deed of trust or mortgage recorded against all or any portion of the Subdivision. No lender taking title to all or any portion of the Subdivision through foreclosure or deed in-lieu of foreclosure shall be liable for any defaults or monetary obligations of Subdivider arising prior to acquisition of possession of such property by such lender. The foreclosing lender shall have the right to find a substitute developer to assume the obligation of Subdivider, which substitute shall be considered for approval by Town pursuant to this agreement, which approval shall not be unreasonably withheld, conditioned or delayed. Town agrees to provide any lender who has recorded a deed of trust or mortgage against all or any portion of North 40 Phase 1 of which Town has been given notice (each, a "Lender'') with written notice of any default relating to the Subdivider and/or North 40 Phase 1 given by Town to Subdivider. Town agrees that, notwithstanding anything to the contrary contained in this Agreement, Lender shall have an additional sixty (60) days from the date Lender receives notice of a default to cure any such default, provided that Lender shall not have any obligation to cure any such default.

If a Lender or an affiliate of such Lender succeeds to the interest of Subdivider through foreclosure or deed in-lieu of foreclosure, then the time periods for performance of Subdivider's obligations set forth in this agreement (if any) shall be extended for a period of time reasonable under the circumstances to permit such Lender or such affiliate to perform Subdivider's obligations under this agreement.

SMHH\54443\1441213.12 8

TOWN Of LOS GATOS
TOWN Ml1i.NAGER .,
ATTEST:

APPROVED AS TO FORM:
/
DATE: /O- '-f- /J
RECOMMENDED BY:

DATE: _______ _
SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
Laurel Prevetti

CLERK ADMINJST TOR
She 11 ey Neis

SUBQIYIPEB
By: f@;nc //tu
Its: Executive Vice� -� DATE: _'1--1/�1t-1---;-/ \_'o_
By: DATE: _q�{_a-_=t-�f (_B _ Jason Bigs
Secretary Its: ____ _
SMHH\54443\1441213.12 9

LICWORKS

CALIFORNIA ALLm PURPOSE

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

State of California }
County of �n +u C Ltu ,� }
)-ti t 8' before me s\., \ 11 L£._, ko,A ss-cl l()ultff p_, 6 I,� '-��+,---,H"-e�ce�lc�s�srthc�,m�e�a�c"d!;frr;,e�o�t�e�o�,�ecrt--'--::....:--, personally appeared __ L_l_L_�l_l' 1':_-_l __ P_re_. _v_e._t-h_· _· ____________ _ who proved to me on the basis of satisfactory evidence to be the person(s) whose name($') is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in-flis/her/their authorized capacity(ie5t, and that by his/her/t+teir signature{-s) on the instrument the person(s), or the entity upon behalf of which the person{-S) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
:g,;t"J@--:-:: ___ ,,.
:::-"··_-_-. --::S::::-YL:-:::VIE:-::R::::OU�SS::,EL,---,[ = COMM.# 2106517 � NOTARYPUBUNALIFORNIA �
I · _
, SANTA CLARA COUNTY
_
My Comm. Exp. April 11, 2019 j
INSTRUCTIONS FOR COMPLETING THIS FORM ADDITIONAL OPTIONAL I Ill F O RMA Tf O Ill Th;s form comp hes whh current Californ;a statutes regard;ng not a')• wo,d;ng and, DESCRIPTION OF THE ATTACHED DOCUMENT if needed, should be completed and attached to the document. Acknowledgments from other states may be completed for documents being sent to that state so long as the wording does not require the California notmy to violate California notary law.
(Title or description of attached document)
(Title or description of attached document continued)
Number of Pages __ Document Date ___ _

CAPACITY CLAIMED BY THE SIGNER
□ Individual (s
)
□ Corporate Officer
{Title)
□ Partner(s)
□ Attorney-in-Fact
□ Trustee(s)
0 Other _________ _
2015 Version W'<>'W NotaryC!2-ssm\ccrr: BOD-873-9865
• State and County information must be the State and County where the document signer(s) personally appeared before the notary public for acknowledgment. • Date of notarization must be the date that the signer(s) personally appeared which must also be the same date the acknowledgment is completed.

The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public).

Print the name(s) of document signer(s) who personally appear at the time of notarization.
• Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. he/she/they, is /are) or circling the correct fonns. Failure to correctly indicate this infonnation may lead to rejection of document recording. • The notary seal impression must be clear and photographically reproducible.

Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area pennits, otherwise complete a different acknowledgment form. o Signature of the notaiy public must match the signature on file with the office of the county clerk.
❖ Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. ❖ Indicate title or type of attached document, number of pages and date. ❖ Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). • Securely attach this document to the signed document with a staple.

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of Stv\,t\_, � )
On � i 1-, Ull't before rne, � Pelici,r'\.";;,, �� PvJJtf.c.- Date Here Insert Narng_ � of the Officer
personally appeared ��AY tv1)_ J� �"2
Name(s) of S1gner(s)
who proved to rne on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

BRIANA PERKINS
Notary Pubtic • California z.

Santa Clara County !
Commission# 2245007
My Comm, Expires Jun 30, 2022
Place Notary Seal Above
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.

WITNESS rny hand and official seal.

Signatur�M Vo
Signature of Notary Public
---------------OPTIONAL---------------
Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description of Attached Document
Title or Type of Document: _____________ Document Date: _______ _ Number of Pages: Signer(s) Other Than Named Above: ____________ _ Capacity{ies) Claimed by Signer{s)
Signer's Name: ____________ _
□ Corporate Officer - Title(s): ______ _
□ Partner - □ Limited □ General
□ Individual □ Attorney in Fact
□ Trustee □ Guardian or Conservator
□ Other: ______________ _
Signer Is Representing: __ _______ _
Signer's Name:
.
::---c=-:-.,---------
□ Corporate Officer - Title(s): ______ _ □ Partner - □ Limited □ General □ Individual □ Attorney in Fact
□ Trustee □ Guardian or Conservator
□ Other:=----,-----------
Signer Is Representing: _________ _
©2014 National Notary Association· www.NationalNotary.org • 1-800-US NOTARY (1-800-876-6827) Item #5907

CALIFORNIA ACKNOWLEDGMENT CIVIL CODE § 1189
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of ___ S_a_n_ta_C_la_r_a _______ _ }
On ----"O'--'C1b=YW=_1-"--'- _7J)�\ s�-- before me, __ S_te_f_a_ni_e_D_._H_o_c_k_em_e�ye_r�, _N_o_ta_ry�P_u-'-b-'-lic:_ __ _ Date Here Insert Name and Title of the Officer
personally appeared ____ ___cM=a:c:ttc:M=o-'-'rl-=-eLy _____________________ _ Name(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument STEFANIE D. HOCKEMEYER
Commission # 2086033
Notary Public � California i
7 Santa Clara County � $J - My Comm. Expires Oct 14, 2016 [, �T?'';.7"'ZP",l''"'B'C"��'w"'"'i' ' �
:m.;_1,'Si;.:�,q;r�:;:;;::,;5-""'✓,;'�.;..,�,
Place Notary Seal and/or Stamp Above
I certify under PENAL TY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.

WITNESS my hand and official seal.

OPTIONAL ---------------­
Completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.

Description of Attached Document
Title or Type of Document: ____________________________ _ Document Date: ______ ______________ Number of Pages: ____ _ Signer(s) Other Than Named Above: ________________________ _ Capacity(ies) Claimed by Signer(s)
Signer's Name: ____________ _
D Corporate Officer - Title(s): _______ _
D Partner - □ Limited D General
D Individual
D Trustee
D Attorney in Fact
□ Guardian or Conservator
D Other: ______________ _
Signer is Representing: _________ _
Signer's Name: ____________ _
D Corporate Officer - Title(s): ______ _
□ Partner - □ Limited D General
D Individual □ Attorney in Fact
□ Trustee □ Guardian or Conservator
□ Other: ______________ _
Signer is Representing: _________ _
�;":�����.:.�.J[���:®._����.®����:_�
©2018 National Notary Association

FAITHFUL PERFORMANCE BOND

EXECUTION COPY
BOND NUMBER: 0728666
PREMIUM: $63,223
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SUMMERHILL N40 LLC (herein designated as "Principal") have entered an agreement by which Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of the Subdivision Improvement Agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and INTERNATIONAL FIDELITY INDEMNITY COMPANY, as Surety, are held and firmly bound unto the Town, in the penal sum of six million, six hundred and fiftyfive thousand ($6,655,000) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, formally by these presents.

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

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

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

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

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

SMHH\5444311441213.9 1

PRINCIPAL:

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

By:

Its·
{/ /---,'-l-<4-------- .,
// ------
Its 00
SMHH\54443\1441213.9 2
SURETY:

IN�DELITY INDEMNITY

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

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

State of CaliforlJ,\,'l ,1 ~ /. County of a a--fn;_.- L..JJ�7?<._• On :5epf /,J 1 2,.t}I) , before me /Yl · fCn,,el/i · a Notary Public, personally appeared ' ��,; C SZ-1-D , who proved to me on the basis of satisfactory evidence to be the person(sj-whos �ame(.s) is/ai:e subscribed to the within instrument and acknowledged to me that Re/she/tl:le.y executed the same in Ri5/her/tl:le-ir authorized capacity(ies).,_ and that by l,j,;/her/tbeir signature(s� on the instrument the person(,+,- or the entity upon behalf of which the person(.s) acted, executed the instrument.

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

WITNESS my hand and official seal.

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

State of CaliforlJi
a
County /JJ ��-'- _ of (,_b�� c,.,...,, o-----
On =��.:..!.��'?t-.9--�· before m , /J?-�, he-6{ · , a Notary Public, personally appeared n •){ v , who proved to me on the basis of satisfactory evidence to be the personis) whose name( is/afe subscribed to the within instrument and acknowledged to me that he.'sh@{lhey executed the same in his/heri'tRsir authorized capacity(is&}, and that by his/hei:LllJgir signature(sl, on the instrument the person(sr, or the entity upon behalf of which the person(s.) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature '--Jn · �
SMHH\54443\1441213.9 1
j'®®eeeemeeee @ M. RINETTI f
<
Notsry PubNc - California
� Coritra Ccsta County j Commission# 2220824 -

1.1� Comm. E.xpires Nov 5. 2021

LABOR AND MATERIALS BOND

EXECUTION COPY
BOND NUMBER: 0728666
PREMIUM: Included
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SummerHill N40 LLC (hereinafter designated as "Principal") have entered an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the Subdivision Improvement Agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the Town to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; NOW, THEREFORE, said Principal and the undersigned as Corporate Surety are held firmly bound unto the Town and all contractors, subcontractors, laborers, material suppliers and other persons employed in the performance of the Subdivision Improvement Agreement and referred to in the aforesaid Civil Code in the sum of six million, six hundred and fifty-five thousand ($6,655,000) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Town in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

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

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

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

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

SMHH\54443\1441213.9 1

PRINCIPAL: SURETY:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
By: Rachel A Portger
Its: Attorney-In-Fact
B
lts
y
:

Manager
( �-
1'frorie L. Szto 2999 Oak Rd. #820
By:

Its: / sz;r.�
r Vice President [;';A"'d�d�re
S<
s
�
s';-] '-"'""--""'="---------
/ / Walnut Creek CA 94597 f .1 ' [City, State, ZIP]
J I ' �1v�--
1JJ UJ0
SMHH\54443\1441213.9 2

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

State of Califo�
a
County of l'vfrtiOn � /{), ?£;/°j , before me, fn • f<:',nc-1/, · a Notary _
Public, personally
appeared 7 ma...p ,r C :52 +tJ , who proved to me on the basis of satisfactory evidence to be the person(sl-whose name(st is/ai.. subscribed to the within instrument and acknowledged to me that �he/lRe'f executed the same in his/her/tl.eir authorized capacity(i&s}, and that by hisfher/theirsignaturefs) on the instrument the person{&r, or the entity upon behalf of which the person(&) acted, executed the instrument.

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

WITNESS my hand and official seal.

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

State of Califon}ijl ..47
�,J County of r2__nfr,c_ C:.bo:!.!J!c
On���_!_���L_, befor7,m , rrl · K.,ht:..,/4; , a
_
Notary Public, personally
appea d ----'-='.!l..L-L.£.&<...JL'/1.-""',1;"""--� who proved to me on the basis of satisfactory evidence to be the person(s) whose name( is/= subscribed to the within instrument and acknowledged to me that he.'sh.i'lhey executed the same in his/h� authorized capacity(ies-), and that by his/h� signature(s-) on the instrument the person{s}, or the entity upon behalf of which the person(s.) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
SMHH\54443\1441213.9
eeeeeeeeeef M. RINETTI
Notary Public - California 2
Contra Ccs:a County �
Commission# 2220824 -
My Comm, Expires Nov 5. 2021
September 7, 2018

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

ALLEGHENY CASUAL TY COMPANY
Bond#
One Newark Center, 20th Floor, Newark, New Jersey 07102-5207 PHONE: (973) 624-7200 0728666
KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the laws of the State of New Jersey, and ALLEGHENY CASUALTY COMPANY a corporation organized and existing under the laws of the State of New Jersey, having their principal office in the City of Newark, New Jersey, do hereby constitute and appoint IVAN M. MAROEVICH, JR., RACHEL A. PORTER, WILLIAM R. GRINDELL, VALERIE D. WILLIAMS-COLE PAUL F. PERLITE.

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

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

STATE OF NEW JERSEY
County of Essex
cJXSUA(J-y
"a
George R. James
Executive Vice President (International Fidelity Insurance Company) and Vice President (Allegheny Casualty Company)
1936 !
*
<l,j, JE\lslc--\
On this 31st day of December, 2016 , before me came the individual who executed the preceding instrument, to me personally known, and, being by me duly sworn, said he is the therein described and authorized officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and of ALLEGHENY CASUAL TY COMPANY; that the seals affixed to said instrument are the Corporate Seals of said Companies; that the said Corporate Seals and his signature were duly affixed by order of the Boards of Directors of said Companies. !N TESTIMONY WHEREOF, I have hereunto set my hand affixed my Official Seal, at the City of Newark, New Jersey the day and year first above written.

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

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

ACKNOWLEDGMENT
A notary public or ot her officer completing this
certificate verifies only the identity of t he individual who signed t he document to which this certificate is
attac hed, and not the truthfulness, accuracy, or
validity of that document.

State of California
County of_
San Francisco
On September 07 , 2018 before me , -�□
;,--=
a�ra�T-:---co=uc=h�,�N�o=t
;"'
a
:::
ry�P�u
:=
b
,;-
lic"---=--,-----­ (insert name and title of the officer )
personally appeared ---'-R
:"
a�c
':'
h�e�l
:-'-
P�o
'-:
rt�e�r
-:-:--;--:---:-:-----,----,-------,;--------,---,----,--------­ who proved to me on the basis of satisfactory evidence to be the personfst whose namefst isi'afe subscribed to the within instrument and acknowledg ed to me th at RelsheAAey executed the same in flis,,'herltlleif aut horized capacityfiest, and that by--A-is,lhefl#leif signaturefst on the instrument the person{s},-or the entity upon behalf of which the personfst acted, executed the instrume nt.

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

WITNESS my hand and official seal.

Signature _ ___:/j=---_,.,,.,_�--+--:::.""c::..__,l,c::__:::,_� __ _ (Seal)

DARA TOUCH
Notary Public -'cau.tornia
!fl San Francis.co County j Commission# 2159426 !: My Comm. Expires Jul 9, 2020

FAITHFUL PERFORMANCE BOND

EXECUTION COPY
BOND NUMBER: 0748728
PREMIUM: $61,085
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SUMMERHILL N40 LLC (herein designated as "Principal") have entered an agreement by which Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, said Principal is required under the terms of the Subdivision Improvement Agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and INTERNATIONAL FIDELITY INDEMNITY COMPANY, as Surety, are held and firmly bound unto the Town, in the penal sum of six million, four hundred and thirty thousand ($6,430,000) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, formally by these presents.

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

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

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

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

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

SMHH\54443\1441213.9

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
By: C ;; . /. jorie L. s�
By:

Its: /2t)() ----
SMHH\54443\1441213.9 2
SURETY:

INTERNATIONAL FIDELITY INDEMNITY

COMPANY
By:

Its:

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

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

State of CaliforniaA ..1-.r /I -LCounty of { IJn; ru_.t. t).5 I t:A-- On !:/epl-: JI)/ ZlJ J) , before me, d'.1 - te, neg{ · , a _
Notary
_
Public, personally
appeared /1'Uw-7Pr r C $:t,. !z> , who proved to me on the basis of satisfactory evidence to be the person(� whose name(-s) is/= subscribed to the within instrument and acknowledged to me that be/she/!Aey executed the same in �/her/tlaeir authorized capacity(-i@sj, and that by Ris/her/tl..lir signature(.;.) on the instrument the person(.:.), or the entity upon behalf of which the person(sr acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
lmeeczeeeeeeeef M. RINETTI _ __ .... ,
..
.

Not,1ry P. ub. lic - California 2
:2 �� Contra Cost• County �
-" � · .. :· Comm1ss1cn :r/. 2220824 -
My Comm. Expires Nov 5. 2021
A notary public or other officer completing this ce1tificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California// -"'-�- A. .L County of L1n1 • p(__ LO.ST"<-- ,(/1 · ,e,, nell,
On Zell 1 , before me, 7J\Ud 1� ,6.,., f!>'C.,. , a Notary Public, personally appeared ' '"),/,g,- who pro d to me on the basis of satisfactory evidence to be the person(s}whose name( is/ai:e subscribed to the within instrument and acknowledged to me that he/sl:le/tl'ley executed the same in his/her41:leiF authorized capacity(ies), and that by hi�lherttheir signature(s.) on the instrument the person(sl, or the entity upon behalf of which the person(s1--acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature '-7r; -¥�
SMHH\54443\1441213.9 1

LABOR AND MATERIALS BOND

EXECUTION COPY
BOND NUMBER: 0748728
PREMIUM: Included
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SummerHill N40 LLC (hereinafter designated as "Principal") have entered an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the Subdivision Improvement Agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the Town to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; NOW, THEREFORE, said Principal and the undersigned as Corporate Surety are held firmly bound unto the Town and all contractors, subcontractors, laborers, material suppliers and other persons employed in the performance of the Subdivision Improvement Agreement and referred to in the aforesaid Civil Code in the sum of six million, four hundred and thirty thousand ($6,430,000) for materials-.furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Town in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

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

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

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

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

SMHH\5444311441213.9 1

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
( 4.:f&,s.o By:

Senior Vice President
By:
f���
I � Ji
SMHH\54443\1441213.9
SURETY:

IN,�ELITY INDEMNITY

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

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

State of Califo3
a (j _J. Gou nty of 1>ftc., tz.SfA.___,.

On �h lo / 2o JJ , before me, )YI • ;€, ,,, e lh . a Notary Public, personally appeare /12/4 �, c.. who proved to me on the basis of satisfactory evidence to be the person(.& hose name(&) is/a... subscribed to the within instrument and acknowledged to me that be/she/tl:+@y executed the same in hl£/her/t�ir authorized capacity(.ieaj,. and that by l:!i!;/her/tl¾,.j;­ signature(s-) on the instrument the person(&), or the entity upon behalf of which the person(s.). acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature�•�
J:reeeer-eeereem: .. .... M. RINETTI •@"�'. · NotaN Public - California � i i�< �? Co�tra Costa County i
� ... , . Commission # 2220824 �
My Comm. Expires Nov 5, 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Californn -1 _
. A _,. County of 11·rr<'L CdS ,.....__
On --"'""c:i�-'--'-"'+<"""�i'-' before me, /rl .;e_, �e_ /4 , a Notary Public, personally appearea ,.s /l. 6,.,.- , who proved to rne on the basis of satisfactory evidence to be the person(st whose name(.;;) is/ subscribed to the within instrument and acknowledged to me that he/sl,e,'lhey executed the same in his/�ir authorized capacity(ies), and that by his/h�r signature(-&) on the instrument the person(s), or the entity upon behalf of which the person(&) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
SMHH\54443\1441213.9
e e e e e r O e 0
M. RINETTI f Notary Public -Caiifornia
Contra Costa Coumv f Commissior: � 22208.24 My Comm. Expires Nov 5. 2021 September 7, 2018

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

ALLEGHENY CASUAL TY COMPANY
Bond#
One Newark Center, 20th Floor, Newark, New Jersey 07102-5207 PHONE: (973) 624-7200 0748728
KNOW ALL MEN BY THESE PRESENTS: That INTERNATIONAL FIDELITY INSURANCE COMPANY, a corporation organized and existing under the raws of the State of New Jersey, and ALLEGHENY CASUAL TY COMPANY a corporation organized and existing under the laws of the State of New Jersey, having their principal office in the City of Newark, New Jersey, do hereby constitute and appoint IVAN M. MAROEVICH, JR., RACHEL A. PORTER, WILLIAM R. GRINDELL, VALERIE D. WILLIAMS-COLE PAUL F. PERLITE.

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

This Power of Attorney is executed, and may be revoked, pursuant to and by authority of the By-Laws of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY and is granted under and by authority of the following resolution adopted by the Board of Directors of INTERNATIONAL FIDELITY INSURANCE COMPANY at a meeting duly held on the 2oth day of July, 2010 and by the Board of Directors of ALLEGHENY CASUAL TY COMPANY at a meeting duly held on the 10th day of July, 2015 "RESOLVED, that (1) the Chief Executive Officer, President, Executive Vice President, Vice President, or Secretary of the Corporation shall have the power to appoint, and to revoke the appointments of, Attorneys-in-Fact or agents with power and authority as defined or limited in their respective powers of attorney, and to execute on behalf of the Corporation and affix the Corporation's seal thereto, bonds, undertakings, recognizances, contracts of indemnity and other written obligations in the nature thereof or re!ated thereto; and (2) any such Officers of the Corporation may appoint and revoke the appointments of joint-control custodians, agents for acceptance of process, and Attorneys-in-fact with authority to execute waivers and consents on behalf of the Corporation; and (3) the signature of any such Officer of the Corporation and the Corporation's seal may be Elffixed by facsimile t0 any power of attorney or certification given for the execution of any bond, undertaking, recognizance, contract of indemnity or other written obligation in the nature thereof or related thereto, such signature and seals when so used whether heretofore or hereafter, being hereby adopted by the Corporation as the original signature of such officer and the original seat of the Corporation, to be valid and binding upon the Corporation with the same force and effect as though manually affixed."
IN WITNESS WHEREOF, INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY have each executed and attested these presents on this 31st day of December, 2016

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

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

CERTIFICATION
Cathy Cruz a Notary Public of New Jersey
My Commission Expires April 1.6, 2019
I, the undersigned officer of INTERNATIONAL FIDELITY INSURANCE COMPANY and ALLEGHENY CASUALTY COMPANY do hereby certify that I have compared the foregoing copy of the Power of Attorney and affidavit, and the copy of the Sections of the By-Laws of said Companies as set forth in said Power of Attorney, with the originals on file in the home of said companies, and that the same are correct transcripts thereof, and of the whole of the said originals, and that the said Power of Attorney has not been revoked and is now in full force and effect.

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

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

State of California
County of_ San Francisco
On September 07 • 2018 before rne , ------;D
c--
a=r=a
'-c
T�o=u=c=h=·�N�o�t
c"
a�ryc..c...P
c;
u"':blc-'
ic"----=--,----­
(insert name and title of the officer)
personally appeared ...,
R
:"
a=c
':'
h�e�l
:-'
P_,o
'-:
rt�e�r
-::---:--:---:---:-----,------,--cc-------,---,--,--------­ who proved to m e on the basis of satisfac tory evidence to be the personw whose namew ist'afe subscribed to the within instrument and acknowledged to me that fl6i'shel#\ey executed the same in flislherl#leif authorized capacityfiesh and that by-hls!hefltRe.if signaturew on the instrument the personfst, or the entity upon behalf of whi c h the personw acted, executed the instrument.

I certify under PENAL TY OF PER JU R Y under the laws of the State of California that the foregoing paragraph is true and correct.

WITN ESS my hand and official seal.

Signature __ J_.....-_L-+--u�.J.--�------ (Seal)

FAITHFUL PERFORMANCE BOND

EXECUTION COPY
BOND NUMBER: 0748729
PREMIUM: $6,745
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SUMMERHILL N40 LLC (herein designated as "Principal") have entered an agreement by which Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and m.,de a part hereof; and
WHEREAS, said Principal is required under the terms of the Subdivision Improvement Agreement to furnish a bond for the faithful performance of said agreement.

NOW, THEREFORE, we, the Principal and INTERNATIONAL FIDELITY INDEMNITY COMPANY, as Surety, are held and firmly bound unto the Town, in the penal sum of seven hundred and ten thousand ($710,000) lawful money of the United States, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, formally by these presents.

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

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

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

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

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

SMHH\54443\1441213.9

PRINCIPAL:

SUMMERHILL N40 LLC,
a California limited liability company
By: SummerHill Homes LLC,
a California limited liability company
Its Manager
By:
ar orie L. Szto
/
lts:+-
/--H--ll---------
By:

SMHH\54443\1441213.9 2
SURETY:

IN�IDELITY INDEMNITY

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

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

State of California/?
County of U ,ir'r--,._.

On W /tJ Vlj , before rne, ,41, K,ke/1..,; ·
. a Notary Public, personally
appeared ¼;;-; T?Jrn:: $2.-1--,;, , who proved to me on the basis of satisfactory evidence to be the person(s) whk name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/tRey executed the same in his/her/tooir authorized capacity(i06}-, and that by hislher/tli-eir signature(s) on the instrument the personfs), or the entity upon behalf of which the person(-st acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
M. RINETTI
Ncrarv Public - California z ., � Contra Cost� County
Commission � 2220S24
My Comm, E�pires Nov 5. 2021
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of Californi?, A -L County of l.On-frtL LlJ,£,lt:,<._.., On -=cc..e'----'--'-'-h-F=�-· beforp vie, f>1 • '1!:, ·.,chi· , a Notary Public, personally appeared YI S rt-el h.6 ,Ir who proved to me on the basis of satisfactory evidence to be the person(-s) whose name s-) is/ai:,, subscribed to the within instrument and acknowledged to me that heh,l:i@ltl:l"'-1/ executed the same in his/h�ir authorized capacity(iest, and that by his/�r signaturet,s) on the instrument the person(sj', or the entity upon behalf of which the person(sl-,acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature
SMHH\5444311441213.9
�oeeeeeeeeeee� M. RINETTI : . - Notary Public- California , f · Contra Costa Cou�ty �
J <e,-,.,:;-,v I Commission : 2220824 -
't My Comm. Expires Nov 5. 2021

LABOR AND MATERIALS BOND

EXECUTION COPY
BOND NUMBER: 0748729
PREMIUM: Included
WHEREAS, the Town of Los Gatos, State of California (hereinafter called "Town"), and SummerHill N40 LLC (hereinafter designated as "Principal") have entered an agreement whereby Principal agrees to install and complete certain designated public improvements, which agreement, dated September [DAY], 2018, and identified as the "Subdivision Improvement Agreement" is hereby referred to and made a part hereof; and
WHEREAS, under the terms of the Subdivision Improvement Agreement, Principal is required, before entering upon the performance of the work, to file a good and sufficient payment bond with the Town to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California; NOW, THEREFORE, said Principal and the undersigned as Corporate Surety are held firmly bound unto the Town and all contractors, subcontractors, laborers, material suppliers and other persons employed in the performance of the Subdivision Improvement Agreement and referred to in the aforesaid Civil Code in the sum of seven hundred and ten thousand ($710,000) for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount herein above set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the Town in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

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

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

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

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

SMHH\54443\1441213.9

PRINCIPAL:

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

By:

SMHH\54443\1441213.9 2
SURETY:

INTERI\JATIONAL FIDELITY INDEMNITY

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

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

State of California AJ -�-' County of l'.'.}n-'fy--,;. CO� )
)
On __;,��C4pe&'.!...1.__ /h. • K:..rrJ.ct/2 • , a Notary Public, personally appearea r c who proved to me on the basis of satisfactory evidence to be the person(s) hose name(.&) is/o!f6 subscribed to the within instrument and acknowledged to me that he-lshe/tb.ey executed the same in Ris/her/toor authorized capacityfiesh-and that by h-ie/her/tl.w signature(st on the instrument the person(st, or the entity upon behalf of which the person{&) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature�- �
e :e e e e e e e *l M. RINETTI
Notary Public - California :

Contra Ccs!.s Courity §;
Commission '1 2220824 -
My Comm, E�pires Nov 5. 2021
A notary public or other officer completing this ce11ificate verifies only the identity of the individual who signed the document to which this certificate is attached, aod not the truthfulness, accuracy, or validity of that document.

County
State of
of
Califort'.3nfr�
On �./. 1(), 2JtJ , beforJ;l me, /71 · /-(,h c. /1, · , a Notary Public, personally appearei:i ZVAn:s: t1e:Ji,/2 bc,c/ , who proved to me on the basis of satisfactory evidence to be the person(-&) whose na(.-) is/are subscribed to the within instrument and acknowledged to me that he/sbelthey executed the same in his/R-9-Fltl:leir authorized capacity(ieaj,. and that by his/�ir signaturefs) on the instrument the personfs), or the entity upon behalf of which the person(s) acted, executed the instrument.

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

WITNESS my hand and official seal.

Signature '----Jn · fd6=
SMHH\54443\1441213.9 September 7, 2018

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

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

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

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

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

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

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

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

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

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

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

WITNESS my hand and official seal.

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

FAITHFUL PERFORMANCE BOND

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

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

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

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

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

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

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

SMHH\54443\1441213.9 1

PRINCIPAL:

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

By:

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

COMPANY
By:

Its:

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

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

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

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

WITNESS my hand and official seal.

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

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

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

WITNESS my hand and official seal.

Signature � · � ,
SMHH\54443\1441213.9

LABOR AND MATERIALS BOND

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

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

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

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

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

SMHH\54443\1441213.9 1

PRINCIPAL:

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

SMHH\54443\1441213.9
. . .
2 SURETY:

IN�DELITY INDEMNITY

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

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

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

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

WITNESS my hand and official seal.

Signature � · �
eeeeeee?:

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

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

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

WITNESS my hand and official seal.

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

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

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

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

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

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

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

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

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

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

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

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

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

WITNESS my ha nd and official seal.

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

FAITHFUL PERFORMANCE BOND

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

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

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

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

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

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

SMHH\54443\1441213.9 1

PRINCIPAL:

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

SMHH\54443\1441213.9 2
SURETY:

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

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

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

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

WITNESS my hand and official seal.

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

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

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

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

LABOR AND MATERIALS BOND

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

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

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

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

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

SMHH\5444311441213.9 1

PRINCIPAL:

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

By:

Its:

SMHH\54443\1441213.9 2
SURETY:

INT ATIONAL FIDELITY INDEMNITY

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

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

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

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

WITNESS my hand and official seal.

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

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

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

WITNESS my hand and official seal.

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

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

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

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

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

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

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

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

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

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

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

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

WITNESS my hand and official seal.

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

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

FAITHFUL PERFORMANCE BOND

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

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

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

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

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

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

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

SMHH\5444311441213.9 1

PRINCIPAL:

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

Senior Vice President
-
SURETY:
l���IDELITY INDEMNITY

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

SMHH\54443\1441213.9 2

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

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

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

WITNESS my hand and official seal.

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

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

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

WITNESS my hand and official seal.

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

LABOR AND MATERIALS BOND

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

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

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

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

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

SMHH\54443\1441213.9 1

PRINCIPAL:

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

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

INT�DELITY INDEMNITY

COMPANY
By:

Its:

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

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

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

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

WITNESS my hand and official seal.

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

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

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

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

WITNESS my hand and official seal.

Signature
SMHH\54443\1441213.9
M. RINETTI.

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

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

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

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

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

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

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

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

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

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

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

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

WITNESS my hand and official seal.

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

My Comm. E,, ires Jul 9, 2020

FAITHFUL PERFORMANCE BOND

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

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

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

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

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

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

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

SMHH\54443\1441213.9 1

PRINCIPAL:

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

By:

SMHH\54443\1441213.9 2
SURETY:

IN�IDELITY INDEMNITY

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

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

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

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

WITNESS my hand and official seal.

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

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

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

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

LABOR AND MATERIALS BOND

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

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

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

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

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

SMHH\54443\1441213.9

PRINCIPAL:

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

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

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

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

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

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

WITNESS my hand and official seal.

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

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

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

WITNESS my hand and official seal.

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

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

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

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

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

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

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

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

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

Maria H. Branco, Assistant Secretary
..

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

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

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

WITNESS my hand and official seal.
(Seal)

FAITHFUL PERFORMANCE BOND

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

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

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

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

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

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

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

SMHH\54443\1441213.9 1

PRINCIPAL:

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

By:

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

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

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

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

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

WITNESS my hand and official seal.

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

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

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

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

LABOR AND MATERIALS BOND

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

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

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

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

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

SMHH\54443\1441213.9

PRINCIPAL:

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

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

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

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

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

WITNESS rny hand and official seal.

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

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

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

WITNESS my hand and official seal.

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

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

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

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

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

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

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

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

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

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

WITNESS my hand and official seal.

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

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

M Comm. E,xpires Jul 9, 2020

FAITHFUL PERFORMANCE BOND

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

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

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

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

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

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

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

SMHH\54443\1441213.9 1

PRINCIPAL:

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

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

INTERNATioriii:L FIDELITY INDEMNITY

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

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

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

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

WITNESS my hand and official seal.

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

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

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

WITNESS my hand and official seal.

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

LABOR AND MATERIALS BOND

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

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

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

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

SMHH\5444311441213.9

PRINCIPAL:

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

NTEI�ilrr ATINALFIDELITY INDEMNITY

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

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

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

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

WITNESS my hand and official seal.

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

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

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

WITNESS my hand and official seal.

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

POWER OF ATTORNEY

INTERNATIONAL FIDELITY INSURANCE COMPANY

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

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

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

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

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

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

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

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

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

WITNESS my hand and official seal.
(Seal)

PREPARED BY: Jennifer Armer
Planning Manager
__________________________________________________________________________________________ Reviewed by: Assistant Town Manager, Town Attorney, and Community Development Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 2/6/2024
ITEM NO: 4
DATE: February 1, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Remanding Decision to Deny a Fence Height Exception Request at 124 Garden Hill Drive for the Construction of a Six-Foot Tall Fence Located Within the Required Front Yard Setback, Street Side Yard Setback, and Corner Sight Triangle on Property Zoned R-1:8 to the Planning Commission for Further Consideration. APN 424-23-084. Fence Height Exception Application FHE-23-005. Categorically Exempt Pursuant to CEQA Guidelines Section 15303: New Construction or Conversion of Small Structures and Section 15301: Existing Facilities.

Property Owner: Rushikesh Kulkarni. Applicant/Appellant: Martin Lettunich.

Project Planner: Ryan Safty.

RECOMMENDATION:

Adopt a resolution (Attachment 7) remanding a Planning Commission decision to deny a fence height exception request at 124 Garden Hill Drive for the construction of a six-foot tall fence located within the required front yard setback, street side yard setback, and corner sight triangle on property zoned R-1:8 and to the Planning Commission for further consideration in light of new information provided by the appellant with his appeal.

DISCUSSION:

On January 16, 2024, Town Council voted unanimously, based on new information, to continue to a date certain of February 6, 2024, and directed staff to prepare a resolution to remand the item back to the Planning Commission for the Council’s adoption. Adoption of the attached resolution (Attachment 7) would finalize that decision.

PAGE 2 OF 2
SUBJECT: 124 Garden Hill Drive/FHE-23-005
DATE: February 1, 2024
ENVIRONMENTAL ASSESSMENT:

The project is Categorically Exempt pursuant to the adopted Guidelines for the Implementation of the California Environmental Quality Act, Section 15303: New Construction or Conversion of Small Structures and Section 15301: Existing Facilities.

ATTACHMENTS:

Previously received with the January 16, 2024 Staff Report:

1. November 8, 2023, Planning Commission Staff Report, with Exhibits 1 through 12

2. November 8, 2023, Planning Commission Desk Item, with Exhibit 13

3. November 8, 2023, Planning Commission Verbatim Minutes

4. Appeal of the Planning Commission decision, received November 17, 2023

5. Revised Justification Letter

6. Draft Resolution to Deny the Appeal and Deny the Project Received with this Staff Report:

7. Draft Resolution to Grant the Appeal and Remand to Planning Commission

ATTACHMENT 7
DRAFT RESOLUTION 2024-___

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS

REMANDING THE PLANNING COMMISSION DECISION TO DENY A FENCE HEIGHT

EXCEPTION REQUEST FOR CONSTRUCTION OF A SIX-FOOT TALL FENCE LOCATED

WITHIN THE REQUIRED FRONT YARD SETBACK, STREET SIDE YARD SETBACK, AND CORNER SIGHT TRIANGLE ON PROPERTY ZONED R-1:8 TO THE PLANNING COMMISSION FOR FURTHER CONSIDERATION.

APN 424-23-084
FENCE HEIGHT EXCEPTION APPLICATION: FHE-23-005
PROPERTY LOCATION: 124 GARDEN HILL DRIVE
PROPERTY OWNER: RUSHIKESH KULKARNI
APPELLANT/APPLICANT: MARTIN LETTUNICH
WHEREAS, on August 4, 2023, the Town issued an administrative warning for a code violation at 124 Garden Hill Drive for an unpermitted six-foot tall fence at the corner of Garden Hill Drive; and
WHEREAS, on September 7, 2023, the property owner applied for an exception to the Town’s fence regulations for the unpermitted six-foot tall fence at the corner of Garden Hill Drive; and
WHEREAS, on September 27, 2023, the Town denied the exception request because the findings listed in Town Code Section 29.40.0320 could not be made; and WHEREAS, on October 5, 2023, the decision of the Community Development Director to deny the exception request was appealed to the Planning Commission; and WHEREAS, on November 8, 2023, the Planning Commission held a duly-noticed public hearing and considered an appeal of the Community Development Director denial of an exception to the Town’s fence regulations for an unpermitted six-foot tall fence in the required front yard setback, street side yard setback, and traffic view area at the corner of Garden Hill Drive; and
WHEREAS, on November 8, 2023, the Planning Commission denied the appeal, upholding the Community Development Director denial of the exception request; and WHEREAS, on November 17, 2023, the appellant, an interested person, filed a timely appeal of the decision of the Planning Commission; and
Draft Resolution to
be modified by Town
Council deliberations
and direction.

WHEREAS, this matter came before the Town Council for public hearing on December 19, 2023, and was regularly noticed in conformance with State and Town law; and WHEREAS, on December 19, 2023, the Town Council continued the public hearing to a date certain of January 16, 2024; and
WHEREAS, the Town Council received testimony and documentary evidence from the appellant and all interested persons who wished to testify or submit documents. The Town Council considered all testimony and materials submitted, including the record of the Planning Commission proceedings and the packet of material contained in the Council Agenda Report for their meeting on January 16, 2024, along with any and all subsequent reports and materials prepared concerning this application.

NOW, THEREFORE, BE IT RESOLVED:

1. The Planning Commission decision to deny an exception the Town’s fence regulations is remanded to the Planning Commission for further consideration based on new information.

2. The decision does not constitute a final administrative decision and the application will be returned to Planning Commission for further consideration.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 6
th day of February 2024, by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: ___________________
ATTEST:

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
DATE: ___________________

This Page
Intentionally
Left Blank

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 02/06/2024
ITEM NO: 5
DATE: February 2, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize $10,000 from the County of Santa Clara County Grant for Unhoused Los Gatos Residents to Be Used for the Hotel Program RECOMMENDATION:

Authorize $10,000 from the County of Santa Clara County grant for unhoused Los Gatos residents to be used for the Hotel Program.

BACKGROUND:

On January 24, 2023, the Town Council reaffirmed its Strategic Priorities and added a new one to support the unhoused residents of Los Gatos.

On April 4, 2023, a majority of the Town Council allocated $50,000 to support unhoused residents. Of those funds, $10,000 was allocated to the Shower Ministry, $20,000 was allocated to a temporary restroom, and $20,000 was allocated to the Hotel Program to provide hotel rooms for unhoused residents during instances of extreme weather, unhealthy air quality, and certain medical needs.

In December 2023, the Town received a $50,000 grant from Santa Clara County (County) to use towards support for unhoused Los Gatos residents. Supervisor Simitian worked with the Town Manager’s Office to create the proposal in light of the Town’s $50,000 investment in services for unhoused residents. While initial discussions regarding the grant indicated the funds would be used for case management for the unhoused, the County has confirmed the funds can be used for any support services for residents experiencing homelessness. Grant funds must be expended by the Town by June 30, 2024 and are one-time funds.

PAGE 2 OF 3
SUBJECT: Funding for Hotel Program for Unhoused Residents DATE: February 2, 2024
DISCUSSION:

The Hotel Program (Program) launched in December 2023. The Program is only available to regular members of our unhoused community who actively participate in the Food Pantry and Shower Ministries hosted by the faith community. Currently, there are 19 people that may participate and are on a pre-screened list that is managed by the faith community.

Since launching, the Program has activated for 15 nights due to weather related events and had one qualifying medical stay, resulting in 145 rooms booked total over the course of the program. Of the 19 individuals that may participate, 14 have utilized the Program. Participants have expressed sincere gratitude for the shelter provided during inclement weather. The Program has been a success in large part due to support from the faith community, dedicated Town staff, and our hotel partners which include the Los Gatos Lodge, the Garden Inn, and the Best Western.

While the Program has strict criteria to reserve funding for the most extreme conditions, the high utilization has depleted the $20,000 allocated to the Program. With less than $200 remaining, the Program would not be able to support additional nights of activation without additional funds. Staff estimates that an additional $10,000 could be sufficient to cover the remainder of the rainy season depending on weather conditions.

Given that the Town has already received $50,000 in grant funding from the County to support residents experiencing homelessness, it is recommended to use $10,000 of these grant funds towards the Hotel Program. The remaining $40,000 in grant funds will still be used towards case management for unhoused residents. Staff is also pursuing the possibility of an additional $5,000 in grant funding specifically for the Hotel Program. If staff is successful in securing this additional grant, the funds from the County grant will be replenished by $5,000, leaving $45,000 available for case management.

CONCLUSION:

Staff recommends that the Council authorize $10,000 from the County of Santa Clara County grant for unhoused Los Gatos Residents to be used for the Hotel Program.

COORDINATION:

The preparation of this report was coordinated between the Town Manager’s Office and the Finance Department.

FISCAL IMPACT:

The $50,000 for the County grant has already been received and no additional budget allocation is needed for this action.

PAGE 3 OF 3
SUBJECT: Funding for Hotel Program for Unhoused Residents DATE: February 2, 2024
ENVIRONMENTAL ASSESSMENT:

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

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: 2/6/2024
ITEM NO: 6
DATE: February 1, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Review and Discuss the Proposed Revisions to the Draft Revised 2023-2031 Housing Element. Location: Town-Wide. General Plan Amendment Application GP-22-003.

RECOMMENDATION:

Discuss and provide direction to staff on the proposed revisions to the Draft Revised 2023-2031 Housing Element.

BACKGROUND:

On December 1, 2023, the Town received the California Department of Housing and Community Development’s (HCD) findings/comment letter (previously provided as Attachment 3 to the January 16, 2024 Staff Report) on the Town’s Draft Revised Housing Element as submitted to HCD on October 2, 2023, along with the modifications submitted on November 28, 2023.

On December 19, 2023, the Town Council unanimously voted to follow a five-step process regarding the 2023-2031 Housing Element update, which includes the following actions:

1. Prioritizing the comments from the December 1, 2023 HCD comment letter;

2. Addressing the most challenging comments first and presenting the draft text of the Draft Revised Housing Element to the Town Council for review, including examples from two to three certified Housing Elements. Additionally, the Town Council hearing will provide the public with an opportunity to comment on the draft text with staff addressing the public comments in subsequent meetings, as needed;

3. Scheduling Town Council meetings with staff and the Housing Element consultant on a regular basis to complete the edits;

4. Reviewing the proposed edits with HCD, as frequently as HCD is able to meet with Town staff, and the Housing Element consultant and providing written feedback to the Council about HCD’s responses; and

PAGE 2 OF 10
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 1, 2024
BACKGROUND (continued):

5. Conducting public engagement with the Housing Element Advisory Board (HEAB) after the Town Council completes its review of the draft text to the Draft Revised Housing Element.

The Town Council also unanimously voted to review the Draft Revised Housing Element prior to a resubmittal to HCD.

On January 16, 2024, the Town Council met to review and discuss the proposed revisions to the Draft Revised Housing Element in response to the December 1, 2023 HCD comment letter. The discussion section below describes the Town Council’s direction for each HCD comment.

On January 18, 2024, staff and the Housing Element consultant met with the Town’s HCD reviewer and received an informal preliminary review matrix, provided in Attachment 9. The informal preliminary comments are based on the proposed edits made to the Draft Revised Housing Element and provided to the Town’s HCD reviewer for initial feedback on December 24, 2023. The proposed edits were in response to HCD’s comment letter provided to the Town on December 1, 2023.

On January 18, 2024, the Housing Element Advisory Board (HEAB) met to review and discuss the proposed revisions to the Draft Revised Housing Element in response to the December 1, 2023 HCD comment letter; Town Council direction provided on January 16, 2024; and HCD’s informal preliminary review matrix provided on January 18, 2024. The discussion section below describes HEAB’s recommendations for revisions to the Draft Revised Housing Element.

DISCUSSION:

The primary purpose of this agenda item is for the Town Council to review and discuss the proposed revisions that staff, the Housing Element consultant, and the Town’s outside legal counsel have made to the Draft Revised Housing Element in a green highlight (Attachment 7) and the Draft Response Table (Attachment 8), that address the following:
 HCD comment letter provided on December 1, 2023 (Attachment 3);  Town Council direction provided on January 16, 2024 (Section A, below);  Suggested edits provided by the Town’s outside legal counsel, Goldfarb & Lipman, LLP, with staff’s responses (Attachment 10);
 Informal preliminary review matrix (Attachment 9) and additional direction provided by HCD on January 18, 2024 (Section B, below); and
 Recommendations provided by the HEAB on January 18, 2024 (Section C, below).

PAGE 3 OF 10
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 1, 2024
DISCUSSION (continued):

A. Town Council Meeting – January 16, 2024
On January 16, 2024, the Town Council met to review and discuss the proposed revisions to the Draft Revised Housing Element in response to the December 1, 2023 HCD comment letter (Attachment 3). The following provides the Town Council’s direction for each HCD comment and staff’s response in italics:

Category 1: Requires Sufficient Engagement and Feedback from HCD

1. Comment 1c. – Motion by Council Member Moore to bundle the steps the Town is taking to increase housing mobility similar to Program 6.G in the City of Los Altos’ certified Housing Element and to modify Program J to change language from “in all neighborhoods” to “in a variety of neighborhoods.” Seconded by Council Member Ristow. Motion passed 3-2. Mayor Badame and Vice Mayor Hudes voted no.

Staff Response: Program 6.G from the City of Los Altos’ Housing Element was replicated in a green highlight on Pages 10-76 through 10-78 of Chapter 10 in the Draft Revised Housing Element as Program AY. Additional edits to Programs E, J, L, Q, S, T, and AV were made in a green highlight to reflect the new language provided in Program AY.

Program J on Page 10-46 of Chapter 10 was modified in a green highlight to revise the wording of “in all neighborhoods” to “a variety of neighborhoods.” Attachment 11 provides proposed language for Program AY, Housing Mobility. The track changes version shows modifications made to the language provided by the Vice Mayor (Attachment 5 of the January 16, 2024 Desk Item) suggesting revisions to Program 6.G from the City of Los Altos’ Housing Element.

Category 2: Ready for HCD Feedback

1. Comment 1b. – Motion by Vice Mayor Hudes to address Comment 1b. by using the example of Table 49 and Table 50 from the Town of Los Altos Hills certified Housing Element. Seconded by Council Member Moore. Motion passed unanimously.

Staff Response: Table 49 from the Town of Los Altos Hills certified Housing Element was replicated as Table A-1 on Pages A-20 and A-21 of Appendix A in a green highlight. The existing Affirmatively Furthering Fair Housing (AFFH) matrix on Pages 10-79 through 10- 82 of Chapter 10 was modified in a green highlight to replicate Table 50 from the Town of Los Altos Hills’ certified Housing Element.

PAGE 4 OF 10
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 1, 2024
DISCUSSION (continued):

2. Comment 2c. – An amended Housing Element Overlay Zone Ordinance (HEOZ) has been prepared by staff and the Town’s outside legal counsel, Goldfarb & Lipman, LLP.

Staff Response: On January 24, 2024, the Planning Commission unanimously recommended approval of an amendment to Chapter 29 of the Town Code to define “by right approvals” and to amend the HEOZ based on the comments provided in the December 1, 2023 HCD comment letter. The Town Council is expected to consider the item on February 20, 2024. The Town’s outside legal counsel, Goldfarb & Lipman, LLP, and HCD have reviewed the amended HEOZ zoning ordinance language.

3. Comment 3b. – The Town’s outside legal counsel, Goldfarb & Lipman, LLP, suggested minor changes in order to analyze how the development standards accumulatively function as a constraint on housing development. Town Council directed staff and the Housing Element consultant, Veronica Tam and Associates, to refine per suggestions by outside legal counsel.

Staff Response: Attachment 10 describes the suggested minor changes to the Draft Revised Housing Element by the Town’s outside legal counsel, Goldfarb & Lipman, LLP, with staff’s responses describing where revisions have been made in the document.

4. Comment 3c., Program D – Town Council directed staff, the Housing Element consultant, and the Town’s outside legal counsel to continue to work on addressing HCD’s comment regarding modifying development standards to achieve maximum densities in the North Forty Specific Plan Area.

Staff Response: Revisions to Program D on Pages 10-43 and 10-44 of Chapter 10 were completed in December 2023 in a blue highlight to include an action to amend the North Forty Specific Plan to include a policy, specifying that additional units resulting from density bonus, SB 330, or other applicable State laws will not count toward the unit cap.

Based on the feedback provided by the Town’s HCD reviewer in the informal preliminary review matrix (Attachment 9), Program D was further modified in a green highlight to include language describing that the housing unit cap will not prevent developments the ability to reach the maximum allowable density plus the additional units due to density bonus and other applicable regulations and providing a timeline for modifying the unit cap as it was found to be a constraint to housing production.

PAGE 5 OF 10
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 1, 2024
DISCUSSION (continued):

5. Comment 3c., Programs V, AQ, and AW – Revisions have been completed.

Staff Response: Revisions to the timeframe of Program V were completed in December of 2023 and can be located on Page 10-57 of Chapter 10 in a blue highlight.

Revisions to Program AQ were completed in December of 2023 in a blue highlight and can be located on Pages 10-69 through 10-71 of Chapter 10. Additional revisions to Program AQ based on the suggested edits from the Town’s outside legal counsel, Goldfarb & Lipman, LLP, and the informal preliminary review matrix provided by the Town’s HCD reviewer on January 18, 2024, have been made in a green highlight (Attachments 9 and 10).

Staff discussed the proposed revised language with HCD on December 13, 2023.

Additional narrative was added to Implementation Program AW on pages 10-75 and 10- 76 of Chapter 10 to describe the further modifications made to the Story Pole Policy by the Town Council on December 5, 2023. Additional revisions to pages 10-75 and 10-76 of Chapter 10 were made in a green highlight address the comment provided in the informal preliminary review matrix provided by the Town’s HCD reviewer on January 18, 2024 (Attachment 9).

Category 3: More Work to Do and Return to Town Council for Review

1. Comment 1a. – Town Council directed staff, the Housing Element consultant, and the Town’s outside legal counsel to continue to work on addressing HCD’s comment.

Staff Response: Revisions to Appendix A on Pages A-18, A-19, A-71, and A-72 in a green highlight have been made in response to the comment regarding the Town’s location as an Income and Racial Concentration Area of Affluence (RCAA).

2. Comment 2a. – Town Council directed staff, the Housing Element consultant, and the Town’s outside legal counsel to continue to work on addressing HCD’s comment.

Staff Response: Revisions were made on Page D-11 of Appendix D in a blue highlight in response to the comment regarding small sites. The informal preliminary review matrix provided by the Town’s HCD reviewer on January 18, 2024, noted this comment as “yes,” meaning that no further revisions were required (Attachment 9).

3. Comment 3a. – Town Council directed staff, the Housing Element consultant, and the Town’s outside legal counsel to continue to work on addressing HCD’s comment.

PAGE 6 OF 10
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 1, 2024
DISCUSSION (continued):

Staff Response: Revisions were made in December of 2023 in a blue highlight with additional narrative on pages C-8 and C-9 of Appendix C to identify the increased development standards, such as building height and lot coverage for sites within the HEOZ. Further revisions were provided in a green highlight to discuss open space requirements for a multi-family or mixed-use project. The Housing Element already includes an action to develop standards to achieve maximum density, including reducing parking requirements. Additional narrative was also added to Implementation Program J on Pages 10-46 and 10-47 of Chapter 10 in a blue highlight to identify a new action to establish a maximum average unit size.

Based on the feedback provided the Town’s HCD reviewer in the informal preliminary review matrix (Attachment 9), Program D on Pages 10-46 and 10-47 was further modified in green highlight to include language that the guest parking requirements and development standards will be modified to facilitate achieving the maximum densities.

4. Comment 3c., Program AA – Staff described the proposed revised language for reduced parking with HCD on December 13, 2023.

Staff Response: Staff and the Housing Element consultant met with the Town’s HCD reviewer on January 18, 2024, and verbally clarified that Program AA had been previously modified in the December 2023 version in a blue highlight to address the removal of guest parking requirements.

5. Comment 4 – Town Council directed staff, the Housing Element consultant, and the Town’s outside legal counsel to continue to work on addressing HCD’s comment and add monitoring and apply for grant opportunities.

Staff Response: The informal preliminary review matrix provided by the Town’s HCD reviewer on January 18, 2024, noted this comment as “yes,” meaning that no further revisions were required (Attachment 9). However, based on feedback from the Town Council and the Town’s outside legal counsel, Program Q on Pages 10-52 and 10-53 of Chapter 10 was modified to include the following new text in a green highlight:
 The Town will actively apply for grant programs, as funds are made available to assist property owners in the construction of ADU’s/JADU’s.  The Town will proactively promote information made available through the Santa Clara County Planning Collaborative, a joint initiative of all 16 jurisdictions in the county on the Town’s website with resources for interested property owners.

PAGE 7 OF 10
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 1, 2024
DISCUSSION (continued):
 More defined action language regarding the Town’s effort to commit to developing strategies if the ADU or JADU assumptions differ from the Housing Element projections.

B. HCD Communications
On January 18, 2024, staff and the Housing Element consultant met with Town’s HCD reviewer and received an informal preliminary review matrix, provided in Attachment 9. The informal preliminary comments are based on proposed edits made to the Draft Revised Housing Element and provided to the Town’s HCD reviewer on December 24, 2023. The proposed edits were in response to HCD’s comment letter provided to the Town on December 1, 2023.

Attachment 8 provides a response matrix of all comments listed in the December 1, 2023 HCD comment letter. The matrix also includes the comments provided by HCD on January 18, 2024, in their informal preliminary review matrix; a summary of the informal, verbal feedback received at the meeting; and staff’s responses to each outstanding comment.

The Town’s HCD reviewer has reviewed and provided feedback to the Town Attorney and the Town’s outside legal counsel, Goldfarb & Lipman, LLP, on the amended HEOZ zoning ordinance language.

On February 1, 2024, the Housing Element consultant requested informal feedback from the Town’s HCD reviewer on Town’s draft approach as presented in this staff report. Staff is awaiting a response back from HCD with preliminary feedback. If feedback is received from HCD, an Addendum or Desk Item will be prepared for the Town Council prior to the meeting.

C. HEAB Recommendations
On January 18, 2024, the HEAB met to review and discuss the proposed revisions to the Draft Revised Housing Element in response to the December 1, 2023 HCD comment letter; suggested edits provided by the Town’s outside legal counsel, Goldfarb & Lipman, LLP; the Town Council direction provided on January 16, 2024; and HCD’s informal preliminary review matrix provided on January 18, 2024. The HEAB discussed each of HCD’s comments and the proposed responses and agreed with the response approach. The following provides HEAB’s specific recommendations and staff’s response in italics:

1. Motion by Planning Commissioner Thomas to increase the quantified objective of Program J from 50 units to 150 units over the eight-year planning period per HCD’s direction. Seconded by Board Member Chen. Motion passed unanimously.

PAGE 8 OF 10
SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 1, 2024
DISCUSSION (continued):

Staff Response: Revisions were made to Program J on Page 10-46 of Chapter 10 in a green highlight to increase the quantified objective to 150 units.

2. Motion by Planning Commissioner Thomas to replace the phrase “in all neighborhoods” with the word “townwide” in Program J so that is reads, “to expand housing choices townwide.” Seconded by Board Member Janoff with an amendment to the motion to include replacing the phrase “throughout Los Gatos” with the word “townwide” in Program 6.G, in the introductory paragraph and bullet four, from the City of Los Altos’ Housing Element. The maker of the motion accepts the amendment. Motion passed unanimously.

Staff Response: Staff is requesting direction from the Town Council regarding the HEAB’s motion to modify the language of Program J from “in a variety of neighborhoods” to “townwide.”

3. Add narrative in the Housing Element where the Town presently goes beyond State law, e.g., the Accessory Dwelling Unit (ADU) Ordinance or Senate Bill 9 (SB 9) Ordinance.

Staff Response: Program Q on Pages 10-52 and 10-53 and Program AV on Page 10-75 of Chapter 10 was modified in a green highlight to include narrative describing how the Town’s ADU and SB 9 Ordinances goes beyond the requirements of State law by allowing a 10 percent increase in the floor area ratio standards.

4. Add narrative to the Housing Element describing the Town’s Diversity, Equity, and Inclusion Commission (DEIC).

Staff Response: Revisions were made on Page 10-15 of Chapter 10 in a green highlight to describe the DEIC and the function of the Commission to advise the Town Council regarding matters pertaining to creating equitable opportunities and a sense of belonging within Town.

5. Add a summary of the general topics of public comments that have been provided on the on the Housing Element using the City of Los Altos Hills Housing Element as an example.

Staff Response: A summary of the general topics of public comments that have provided on the Housing Element update process was added on Pages 10-17 through 10-18 of Chapter 10.

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SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 1, 2024
DISCUSSION (continued):

6. Consider requiring an ADU with the construction of new single-family residence to increase the production of affordable units in low density designations, if the Town’s ADU production does not meet the projected objectives.

Staff Response: Program Q on Page 10-52 of Chapter 10 includes the monitoring of ADU and JADU production, and the development of strategies and incentives to address any potential shortfall in the proposed objectives of the Housing Element.

All changes recommended by HEAB have been included in Attachment 7, with the exception of the modified language to Program J, as noted in the staff response to HEAB recommendation 2, above.

The recorded audio of the January 18, 2024, HEAB meeting is available at the following website link: https://losgatos-ca.municodemeetings.com/.

E. Next Steps
This agenda item provides the Town Council an opportunity to discuss the proposed revisions to the Draft Revised Housing Element. The Housing Element consultant will be available, remotely, to answer Council Members’ questions. 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.

Should the Town Council be satisfied with the proposed revisions to the Draft Revised Housing Element, the seven-day review period could be started on Thursday, February 8, 2024, ending on Wednesday, February 14, 2024, with a formal resubmittal to HCD by Friday February 21, 2024. Subsequent review by HCD will take up to 60 days.

CONCLUSION:

Staff looks forward to the Town Council’s discussion and direction.

PUBLIC COMMENTS:

Public comments received between 11:01 a.m., Thursday, January 16, 2024, and 11:00 a.m., Thursday, February 1, 2024, are included as Attachment 12.

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SUBJECT: DRAFT REVISED 2023-2031 HOUSING ELEMENT/GP-22-003 DATE: February 1, 2024
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 was prepared for the Housing Element update and available on the Town’s Housing Element website at: https://www.losgatosca.gov/EnvironmentalAnalysis. 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.

ATTACHMENTS:

Previously Received with the January 16, 2024 Staff Report:

1. Draft Revised Housing Element, Track Changes Copy

2. Draft Response Table

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

4. Public Comments Received Between 11:01 a.m., Tuesday, December 19, 2023, and 11:00 a.m., Thursday, January 11, 2024
Previously Received with the January 16, 2024 Desk Item:

5. Comments from the Vice Mayor

6. Public Comments Received Between 11:01 a.m., Thursday, January 11, 2024, and 11:00 a.m., Tuesday, January 16, 2024
Received with this Staff Report:

7. Draft Revised Housing Element, Track Changes – January 2024

8. Draft Response Table – January 2024

9. HCD Informal Preliminary Review Matrix with Staff’s Responses

10. Goldfarb & Lipman, LLP Feedback Table with Staff’s Responses

11. Track Changes and Clean Version of Program AY Housing Mobility

12. Public Comments Received Between 11:01 a.m., Tuesday, January 16, 2024, and 11:00 a.m., Thursday, February 1, 2024

Town of Los Gatos 6th Cycle
2023-2031 Housing Element Update
HCD Draft Revised Draft
January 2024November 2023 September 2023 March 2023
ATTACHMENT 7

This document was produced on recycled paper.

HCD DRAFT REVISED DRAFT

TOWN OF LOS GATOS
6 TH CYCLE 2023-2031 HOUSING ELEMENT
JAN U AR Y 2024 NO VE MB E R 2023SE P T EM BE R 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
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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 ........................................................................................ 10-1617

10.2 Overview of Housing Needs and Constraints .....................................................10-161718

10.2.1 Introduction ...........................................................................................10-161718

10.2.2 Los Gatos Overview. ...............................................................................10-161718

10.2.3 Demographics .......................................................................................10-192021

10.2.4 Household Characteristics ......................................................................10-222324

10.2.5 Housing Stock Characteristics .................................................................10-242526

10.2.6 Special Housing Needs ...........................................................................10-262728

10.2.7 Governmental and Non-Governmental Constraints .................................10-303132

10.3 Site Inventory and Opportunities ......................................................................10-313233

10.3.1 Introduction ...........................................................................................10-313233

10.3.2 Sites Summary. ......................................................................................10-313233

10.3.3 Summary of Quantified Objectives…………………………………………………………10-323334

10.4 Energy and Resource Conservation ...................................................................10-333435

10.4.1 Opportunities for Energy Conservation ...................................................10-333435

10.4.2 Energy-Related Goals and Policies. .........................................................10-333536

10.5 Goals and Policies ............................................................................................10-343537

10.6 Implementation Programs ................................................................................10-394142

10.7 Glossary and Acronyms ............................................................................ 10-6871757783

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

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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.

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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 lowPage 128

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income households to market rate housing.1 This calculation, known as the Regional Housing Needs 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. 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.

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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 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.

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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.

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 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.

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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.

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 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.

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.