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.
This meeting will be teleconferenced pursuant to Government Code Section 54953(b)(3). Council Member Maria Ristow will be participating from a teleconference location at SACO Bristol – West India House, 2-4 Welsh Back, Bristol ENGLAND BS1-4SS. The teleconference location shall be accessible to the public and the agenda will be posted at the teleconference location 72 hours before the meeting.
HOW TO PARTICIPATE
The public is welcome to provide oral comments in real-time during the meeting in three ways:
Zoom Webinar (Online): Join from a PC, Mac, iPad, iPhone or Android device. Please use this URL to join: https://losgatoscagov.zoom.us/j/82232739012?pwd=1zlbRu029_33oyBb9l3AyTZQ7D2MEQ.kN8FbuOklNsmz-Jj Passcode: 793054 You can also type in 822 3273 9012 in the “Join a Meeting” page on the Zoom website at and use passcode 793054.
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)
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.
NOTES: (1) Comments will be limited to three (3) minutes or less at the Mayor’s discretion. (2) 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.
(3) Deadlines to submit written comments are:
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. (4) 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
COUNCIL MEETING AGENDA *AMENDED
APRIL 16, 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
PRESENTATIONS
i. Arbor Day Proclamation
ii. Keep Los Gatos Beautiful Month Proclamation
iii. National Public Safety Telecommunications Week
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 Minutes of the April 2, 2024 Closed Session Town Council Meeting.
2. Approve Minutes of the April 2, 2024 Town Council Meeting.
3. Approve Minutes of the April 8, 2024 Special Town Council Meeting.
4. Authorize the Town Manager to Execute a First Amendment to the Agreement for Services with Brightview Tree Care Services, Inc. to Increase Compensation for Fiscal Year 2023/24 in an Amount of $100,000 for a Total Annual Amount Not to Exceed $300,000 and a Total Agreement Amount Not to Exceed $1,100,000; and Authorize a Revenue and Expenditure Budget Adjustment in the Amount of $100,000 from the Available Tree Replacement Deposit Account.
5. Authorize a Budget Transfer of Previously Allocated Measure B Funds in the Amount of $1,734,250 from the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) to the Kennedy Road Sidewalk – Los Gatos Boulevard Project (CIP No. 813-0241).
6. Receive the Monthly Financial and Investment Report for February 2024.
7. Adopt a Resolution Describing Improvements and Directing the Preparation of the Town Engineer’s Report for Fiscal Year 2024/25 for Landscape and Lighting Assessment Districts No. 1 and 2.
8. Authorize Revenue and Expenditure Budget Adjustments in the Amount of $15,615.98 to Recognize Excess Insurance Reimbursement for Damage to Howes Play Lot Structure.
9. Approve the Following Action for the Shannon Road Pedestrian and Bikeway Improvement Project (CIP No. 813-0218):
a. Authorize the Town Manager to execute Program Supplement No. F0104 to the Administering Agency-State Agreement for Federal-Aid Project No. 04-5067F15 in the Amount of $940,100 from the State of California Department of Transportation (Caltrans).
10. Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for Construction of the Corporation Yard Building Replacement Completed by S&H Construction, Inc., and Authorize the Town Clerk to File for Recordation.
11. Approve and Authorize the Town Manager to Execute a Memorandum of Understanding Between the Town of Los Gatos and the Police Officers’ Association, and Authorize an Expenditure Budget Adjustment in the Amount of $154,376 from the Available General Fund Capital/Special Projects Reserve.
12. Adopt a Resolution Rescinding the Land Use and Community Design Elements of the 2040 General Plan.
13. Adopt a Resolution Rescinding Resolution Nos. 2024-003, 2024-004, and 2024-005 Regarding the Transportation Impact Fee.
14. Authorize the Town Manager to Execute the First Amendment to the Contract with DKS Associates to Modify the Scope of Services and Increase Compensation from $160,505 to $166,647.
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.) PUBLIC HEARINGS (Applicants/Appellants and their representatives may be allotted up to a total of five minutes maximum for opening statements. Members of the public may be allotted up to three minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of three minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.)
15. Open the Public Hearing for an Appeal of a Planning Commission Decision to Deny a Request to Eliminate a Housing Unit from the Town’s Housing Inventory on Property Zoned R-1D, Located at 501 Monterey Avenue, and Continue the Matter to May 7, 2024.
APN 410-15-052. Categorically Exempt Pursuant to CEQA Guidelines Section 15301:
Existing Facilities. Architecture and Site Application S-23-038. Property Owner/Applicant/Appellant: Katrina and Carlos Azucena. Project Planner: Sean Mullin OTHER BUSINESS (Up to three minutes may be allotted to each speaker on any of the following items.)
16. Establish a Town Council Policy Governing Town Board, Commission, and Committee Budgets.
17. Discuss Future Adoption Development Agreement Procedures and Provide Direction to Staff.
18. Adopt a Resolution, Based on Planning Commission Recommendations, Modifying the Height Pole and Netting Policy for Additions and New Construction. The Proposed Modifications to Town Policy are Not Considered a Project Under the California Environmental Quality Act. Project Location: Town Wide. Applicant: Town of Los Gatos.
19. Discuss and Provide Direction Regarding the Finance Commission Recommendation to Issue a Request for Qualification (RFQ) for the Preparation of the Annual Comprehensive Financial Report (ACFR).
20. Authorize the Town Manager to Negotiate an Animal Services Agreement between the Town of Los Gatos and the Silicon Valley Animal Control Authority (SVACA), and Direct Staff to Bring Back an Agreement for the Town to Become a Member of the SVACA.
COUNCIL / MANAGER MATTERS
CLOSED SESSION REPORT
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] *The title of item #14 has been amended.
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DRAFT
Minutes of the Town Council Special Meeting – Closed Session Tuesday, April 2, 2024
The Town Council of the Town of Los Gatos conducted a Special Meeting in-person and utilizing teleconferencing means on Tuesday, April 2, 2024, at 5:45 p.m. to hold a Closed Session to discuss anticipated litigation.
MEETING CALLED TO ORDER AT 5:46 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)
None.
THE TOWN MOVED TO CLOSED SESSION ON THE FOLLOWING ITEM:
1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (d) of Government Code Section 54956.9: 1 case (1/16/24 Desk Item with email regarding adequacy of transportation impact fee nexus study).
Also attended:
Nicolle Burnham, Parks and Public Works Director
Rick Jarvis, Esq., Jarvis Fay
Erin Vaca, DKS Consulting
Kuda Wekwete, David Taussig and Associates.
The Town Council reconvened in open session. The Town Attorney stated there was no reportable action.
ADJOURNMENT
The meeting adjourned at 6:51 p.m.
Attest: Submitted by:
___________________________ ___________________________ Wendy Wood, Town Clerk Laurel Prevetti, Town Manager
ITEM NO. 1.
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DRAFT
Minutes of the Town Council Meeting
Tuesday, April 2, 2024
The Town Council of the Town of Los Gatos conducted a regular meeting in-person and utilizing teleconferencing means on Tuesday, April 2, 2024, at 7:00 p.m.
MEETING CALLED TO ORDER AT 7:00 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 Ristow led the Pledge of Allegiance. The audience was invited to participate.
PRESENTATIONS
i. The Los Gatos Foundation for Older Adults to Thrive gave a presentation on the status of its work.
ii. Mayor Badame issued a Poetry Month Proclamation and Town Poet Laureate William Ward Butler read one of his poems.
CONSENT ITEMS (TO BE ACTED UPON BY A SINGLE MOTION)
1. Approve Minutes of the March 15, 2024 Special Town Council Meeting.
2. Approve Minutes of the March 19, 2024 Closed Session Town Council Meeting.
3. Approve Minutes of the March 19, 2024 Special Town Council Meeting - Commissioner Interviews.
4. Approve Minutes of the March 19, 2024 Town Council Meeting.
5. Approve Minutes of the March 26, 2024 Closed Session Town Council Meeting.
6. Authorize the Town Manager to Execute an Agreement with Peckham & McKenney for Town Manager Recruitment Services in an Amount not to Exceed $32,000.
7. Adopt an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos Amending the Zoning from C-1 (Neighborhood Commercial) to RD (Residential Duplex) for Properties Located at 15025, 15026, 15039, 15040, 15053, 15054, 15066, 15067, 15080, and 15081 Downing Oak Court.” APNs 523-41-024, -033, -025, -032, -026, -031, -030, -027, -029, and -028. Exempt pursuant to CEQA Guidelines 15061 (b)(3): Review for Exemption.
Zoning Amendment Application Z-24-002. Applicant: Town of Los Gatos. Project Planner:
Sean Mullin. ORDINANCE 2357
ITEM NO. 2.
PAGE 2 OF 8
SUBJECT: Draft Minutes of the Town Council Meeting of April 2, 2024 DATE: April 2, 2024
8. Adopt an Ordinance Titled “An Ordinance of the Town Council of the Town of Los Gatos Amending Chapter 29, ‘Zoning Regulations,’ of the Town Code Regarding Appeals from the Decision by the Planning Director, Appeals from the Decision of the Historic Preservation Committee, Assignment of Duties to the Planning Director, Assignment of Duties to the Planning Commission, Powers and Duties of Planning Commission, Powers and Duties of the Planning Director, and Powers and Duties of the Historic Preservation Committee” and Adopt a Resolution Titled “Resolution of the Town Council of the Town of Los Gatos Amending the Enabling Resolution of the Historic Preservation Committee and Rescinding Resolution 2021-043.” The Proposed Amendments to the Town Code are Not Considered a Project Under Section 15378 of the California Environmental Quality Act. Town Code Amendment Application A-24-001. Applicant: Town of Los Gatos. Project Planner: Sean Mullin. ORDINANCE 2355
9. Adopt an Ordinance Titled, “An Ordinance of the Town Council of the Town Los Gatos Amending Chapter 1 Article III, ‘Administrative Citations,’ Chapter 11, ‘Garbage, Refuse, and Weeds,’ and Chapter 16, ‘Noise’ of the Town Code.” ORDINANCE 2356
10. Modify the Town of Los Gatos Donation Opportunities FY 2023/24 List of Town Needs, Accept the Donation of Automated External Defibrillators and Outdoor SaveStation® Cabinets from the Kyle J. Taylor Foundation, and Authorize the Town Manager to Sign the Acknowledgement Form Provided by the Donor.
11. Approve a Novation Replacing Columbia Telecommunications Corporation with Imperial County Office of Education for the State Negotiated Contract for the Library’s Corporation for Educational Network Initiatives in California Broadband Connection and Servicing.
12. Authorize Revenue and Expenditure Budget Adjustments in the Amount of $65,000 to Recognize Receipt of State Homeland Security Grant Program (SHSGP) funds and Authorize the Town Manager to Execute the Required Agreement and Grant Documents to Receive Reimbursement Funds in Accordance with SHSGP Requirements.
13. Authorize the Town Manager to Execute a Third Amendment with HdL Companies for Business License Consulting and Reviewing Services to Review Draft Procedures for the Apportionment of Business License Taxes with Netflix Inc. Not to Exceed $40,000 with a Total Contract Not to Exceed $273,000.
14. Chavan & Associates Agreement:
a. Authorize the Town Manager to Execute a First Amendment with Chavan & Associates, LLP. for Auditing Services Adding Transportation Development Act Audit Services and Increasing the Compensation by $15,500 for a Total Agreement Not to Exceed $132,500; and
b. Authorize an Expenditure Budget Adjustment in the Amount of $10,500 from the Available General Fund Capital/Special Projects Reserve.
15. Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for the Fiscal Year 2022/23 Annual Street Repair and Resurfacing Project (CIP No. 811-9901), Completed by Pavement Coatings, and Authorize the Town Clerk to File for Recordation.
ITEM NO. 2.
PAGE 3 OF 8
SUBJECT: Draft Minutes of the Town Council Meeting of April 2, 2024 DATE: April 2, 2024
16. Reschedule to April 16, 2024, the Consideration of the Adoption of a Resolution Modifying the Height Pole and Netting Policy for Additions and New Construction. The Proposed Modifications to Town Policy are Not Considered a Project Under the California Environmental Quality Act. Project Location: Town Wide. Applicant: Town of Los Gatos.
Mayor Badame opened public comment.
No one spoke.
Mayor Badame closed public comment.
MOTION: Motion by Council Member Ristow to approve consent items 1-16. Seconded by Council Member Moore.
VOTE: Motion passed unanimously.
VERBAL COMMUNICATIONS
Joesph Enz
- Commented on the status of the unhoused individuals and thanked Town Manager Prevetti for her service.
John Shepardson
- Commented on the Union School district’s sale of the Mirassou Elementary School open space, stated concerns, and requested Council protect the open space.
OTHER BUSINESS
17. Receive a Report on the Transportation Impact Fee and Provide Direction.
Nicolle Burnham, Parks and Public Works Director, presented the staff report.
Mayor Badame opened public comment.
No one spoke.
Mayor Badame closed public comment.
Council discussed the item and had a consensus that additional analysis to explore several options and return to Town Council with the results.
MOTION: Motion by Vice Mayor Hudes to continue this item with the Council’s verbal comments that were made as input to staff and ask that in the follow-up to this, Council be presented with no more than three options with a staff recommendation.
Seconded by Mayor Badame.
VOTE: Motion passed unanimously.
ITEM NO. 2.
PAGE 4 OF 8
SUBJECT: Draft Minutes of the Town Council Meeting of April 2, 2024 DATE: April 2, 2024
18. Discuss Potential Next Steps with Regard to the Referendum of Land Use and Community Design Elements of 2040 General Plan and Provide Direction to Staff.
Gabreille Whelan, Town Attorney, presented the staff report.
Mayor Badame opened public comment.
No one spoke.
Mayor Badame closed public comment.
Council discussed the item.
MOTION: Motion by Council Member Ristow to rescind the 2040 Community Design and Land Use Elements. Seconded by Council Member Rennie.
SUBSTITUTE MOTION: Motion by Vice Mayor Hudes to continue this item until May 21, which is four days after [the Town is] due to receive comments from HCD. Seconded by Mayor Badame.
SUBSTITUTE VOTE: Motion failed 2-3. Council Members Moore, Rennie, and Ristow voted no.
VOTE: Motion passed 3-2. Vice Mayor Hudes and Mayor Badame voted no.
MOTION: Motion by Council Member Rennie to bring this discussion back after the Housing Element is certified. Seconded by Council Member Moore.
VOTE: Motion passed unanimously.
Mayor Badame recessed the meeting at 9:01 p.m.
Mayor Badame reconvened the meeting at 9:10 p.m.
PUBLIC HEARINGS
19. Adopt a Resolution Approving the Comprehensive Fee Schedule for Fiscal Year 2024/25 to Continue Certain Department Fees, Rates, and Charges, and Amending Certain Fees, Rates, and Charges for Fiscal Year 2024/25. RESOLUTION 2024-013 Gitta Ungvari, Finance Director, presented the staff report.
Mayor Badame opened public comment.
No one spoke.
ITEM NO. 2.
PAGE 5 OF 8
SUBJECT: Draft Minutes of the Town Council Meeting of April 2, 2024 DATE: April 2, 2024
Mayor Badame closed public comment.
Council discussed the item.
MOTION: Motion by Vice Mayor Hudes to adopt the resolution approving the Comprehensive Fee Schedule for Fiscal Year 24/25 contained in Attachment 1. Seconded by Council Member Moore.
VOTE: Motion passed unanimously.
20. Introduce an Ordinance Titled, “An Ordinance of the Town Council of the Town of Los Gatos Amending Chapter 29, ‘Zoning Regulations,’ Article I, ‘In General,’ Division 3 ‘Signs,’ of the Town Code Regarding Sign Regulations” as Recommended by the Planning Commission. The proposed amendments to the Town Code are not a project subject to CEQA [CEQA Guidelines Section 15061(b)(3)]. Town Code Amendment Application A-24- 002. Project Location: Town Wide. Applicant: Town of Los Gatos.
Gabreille Whelan, Town Attorney, presented the staff report.
Mayor Badame opened public comment.
No one spoke.
Mayor Badame closed public comment.
Council discussed the item.
MOTION: Motion by Vice Mayor Hudes to adopt the [staff] recommendations with the exception of political signs and direct the Town Attorney to come back with a proposal that more closely matches current political sign policy. Seconded by Mayor Badame.
Town Attorney Whelan recommended the ordinance as a whole return to Council.
Vice Mayor Hudes withdrew the motion.
MOTION: Motion by Vice Mayor Hudes to continue this item with a modification [to political signs] and consider it at a future date. Seconded by Mayor Badame.
VOTE: Motion passed 4-1. Council Member Ristow voted no.
ITEM NO. 2.
PAGE 6 OF 8
SUBJECT: Draft Minutes of the Town Council Meeting of April 2, 2024 DATE: April 2, 2024
OTHER BUSINESS
21. Discuss the Code of Conduct Policy Sections V. and XI. Pertaining to Councilmember Communications.
Gabreille Whelan, Town Attorney, presented the staff report.
Mayor Badame opened public comment.
No one spoke.
Mayor Badame closed public comment.
Council discussed the item.
MOTION: Motion by Vice Mayor Hudes to adopt item 1, option 3 (language listed for in the PowerPoint presentation for Section V. Subsection C. of the Code of Conduct, which states “provide that, in Mayor’s absence or unavailability, Vice Mayor is responsible”), and item 2 (language listed for in the PowerPoint presentation for Section V. Subsection C. of the Code of Conduct, listed in the PowerPoint presentation which states “clarify that the Mayor’s communication with the Town Council will conform with the Brown Act”). Seconded by Council Member Ristow.
Council Member Hudes withdrew the motion.
MOTION: Motion by Vice Mayor Hudes to adopt item 2 (language listed for in the PowerPoint presentation for Section V. Subsection C. of the Code of Conduct, listed in the PowerPoint presentation which states “clarify that the Mayor’s communication with the Town Council will conform with the Brown Act”), and change the wording under Vice Mayor, Subsection A. to “In the Mayor’s absence, the Vice Mayor shall perform the duties of the Mayor,” striking the word “formal.” Seconded by Council Member Ristow.
VOTE: Motion passed unanimously.
MOTION: Motion by Vice Mayor Hudes to add item 1 about the Brown Act [as listed in the PowerPoint presentation for Section XI. of the Code of Conduct (add ‘where not prohibited by the Brown Act’ to sentence referencing Mayor’s communication with Town Councilmembers)] and directed the Town Attorney to work on item 2 & 3 [(2) explain the difference between a policy matter pending before the Town Council and a future quasi-adjudicatory project; and (3) separate out discussion of quasiadjudicatory decisions and address participation in community meetings] to make changes to separate policy from quasi-adjudicatory; adopt item 4 (change references
ITEM NO. 2.
PAGE 7 OF 8
SUBJECT: Draft Minutes of the Town Council Meeting of April 2, 2024 DATE: April 2, 2024
to “full” Town Council to a “majority” of the Town Council); add item 5 “No Councilmember shall communicate in a manner that appears to come from the Town or Town staff or the Town Council.” Move forward with item 6 (provide examples of how to indicate to the press that a Councilmember is speaking on his or her own behalf and not on behalf of the Council); and change the last sentence of Section XI to such statements are permissible if clearly characterized as personal opinion or policy change objectives including those made on behalf of another elected official, or on behalf of a public or state agency or political subdivision, rather than the opinion of the majority of the Town Council. Seconded by Council Member Ristow.
VOTE: Motion passed unanimously.
COUNCIL/TOWN MANAGER REPORTS
Council Matters
- Council Member Ristow stated she participated in the Council Policy Committee; attended the annual update for the Lehigh Cement Plant and Quarry closing, and the Kiwanis Club 100th Anniversary Gala.
- Council Member Moore stated he will hold his Council Member Happy Hour and Community Coffee; met with business owners to discuss SB 330 applications; and commented on the Chamber of Commerce’s “You Belong in Los Gatos” street pole banner contest.
- Vice Mayor Badame stated she participated in a Democracy Tent meeting; met with Don Capobres regarding N40 Phase II; attended the Policy Committee as an observer, Mayor and Managers meeting, and the Kiwanis Club 100th Anniversary Gala. - Council Member Rennie stated he had nothing of significance to report. - Vice Mayor Hudes stated he met with Los Gatos Foundation for Older Adults to Thrive; participated in the Policy Committee; met with the Community Center Committee of the Foundation; listened a portion of Silicon Valley Regional Interoperability Authority meeting and a portion of the Community Health and Senior Services Commission (CHSSC) meeting; participated in the Kiwanis Club 100th Anniversary Gala and the Sourcewise Advisory Committee meeting.
Manager Matters
- Announced the Youth Commission recruitment is open. Applications are due on May 1 and all information is on the website.
- Spring into Green will be held on April 21, at 10 a.m. in Town Plaza Park and invited all to attend.
CLOSED SESSION REPORT
Gabrielle Whelan, Town Attorney, stated the Town Council met in closed session pursuant to Government Code §54956.9 to discuss anticipated litigation and stated there was no reportable action.
ITEM NO. 2.
PAGE 8 OF 8
SUBJECT: Draft Minutes of the Town Council Meeting of April 2, 2024 DATE: April 2, 2024
ADJOURNMENT
The meeting adjourned at 11:08 p.m.
Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Town Clerk
ITEM NO. 2.
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DRAFT
Minutes of the Town Council Special Meeting
Monday, April 8, 2024
The Town Council of the Town of Los Gatos conducted a special meeting in-person and utilizing teleconferencing means on Monday, April 8, 2024, at 11:30 a.m. to provide direction on the Town Manager recruitment.
MEETING CALLED TO ORDER AT 11:32 A.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
VERBAL COMMUNICATIONS
None.
OTHER BUSINESS
1. Provide Direction on the Town Manager Recruitment.
Town Manager Laurel Prevetti made a brief presentation and introduced Executive Recruiter Anton Dahlerbruch (Peckham & McKenney).
Mayor Badame opened public comment.
No one spoke.
Mayor Badame closed public comment.
Town Council discussed the item and provided direction on the Town Manager recruitment.
ADJOURNMENT
The meeting adjourned at 12:21 p.m.
Attest: Submitted by:
___________________________ ___________________________ Jenna De Long, Deputy Town Clerk Laurel Prevetti, Town Manager
ITEM NO. 3.
PREPARED BY: Jim Harbin
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DATE: March 29, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the Agreement for Services with Brightview Tree Care Services, Inc. to Increase Compensation for Fiscal Year 2023/24 in an Amount of $100,000 for a Total Annual Amount Not to Exceed $300,000 and a Total Agreement Amount Not to Exceed $1,100,000; and Authorize a Revenue and Expenditure Budget Adjustment in the Amount of $100,000 from the Available Tree Replacement Deposit Account
RECOMMENDATION:
Authorize the Town Manager to execute a first amendment to the agreement for services with Brightview Tree Care Services, Inc. to increase compensation for Fiscal Year 2023/24 in an amount of $100,000 for a total annual amount not to exceed $300,000 and a total agreement amount not to exceed $1,100,000 (Attachment 1); and authorize a revenue and expenditure budget adjustment in the amount of $100,000 from the available tree replacement deposit account.
BACKGROUND:
The Town of Los Gatos contracts tree trimming and removal services to maintain the Town’s trees in streets and parks. On June 20, 2023, the Town Council authorized the Town Manager to execute a five-year Agreement for Services with Brightview Tree Care Services, Inc. for tree trimming and maintenance services. The original agreement included $200,000 for year one of the agreement and $200,000 annually thereafter.
ITEM NO. 4.
PAGE 2 OF 2
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the Agreement and a Budget Adjustment in the Amount of $100,000.
DATE: March 29, 2024
DISCUSSION:
On June 6, 2023, Town Council approved the FY 2023/24 Operating and Capital Budget. Base funding for tree trimming and maintenance services were allocated in the Streets and Signal Program in the amount of $200,000. With the continued damage and threat response resulting from the last two storm seasons, staff has had little opportunity to perform preventive block pruning, fire fuel reduction efforts, and tree replacements with the budget generally being consumed by emergency work. This amendment increases the Brightview Tree Service contract by $100,000 to allow priority and emergency work to continue through the remainder of Fiscal Year 2023/24.
CONCLUSION:
With the recommended action, Town Council would authorize the Town Manager to execute an amendment to the agreement for services with Brightview Tree Care Services to continue essential tree services vital to the health of the Town’s trees through the end of Fiscal Year 2023/24.
FISCAL IMPACT:
The Adopted FY 2023/24 Operating Budget includes funding within the Streets and Signals Program Budget in the amount of $200,000 for tree services. The additional $100,000 will be funded by the Town Tree Replacement Deposit Account.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. First Amendment to the Agreement for Services
2. Original Agreement for Services
ITEM NO. 4.
First Amendment to Agreement for Services ATTACHMENT 1
Brightview Tree Care Services, Inc.
FIRST AMENDMENT TO AGREEMENT FOR SERVICES
This FIRST AMENDMENT TO AGREEMENT FOR SERVICES is dated for identification this 16 day of April 2024 and amends that certain Agreement for Services dated June 20, 2023, made by and between the Town of Los Gatos, ("Town,") and the Brightview Tree Care Services, Inc. (“Service Provider”) identified as a C Corporation and whose address is P.O. Box 31001-2643, Pasadena, CA 91110-2463
RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 20, 2023, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Exhibit A to this Amendment.
B. Town desires to amend the Agreement to increase the compensation.
AMENDMENT
1. Section 2.6 Compensation is amended to read as follows:
Additional compensation for Service Providers professional services shall be increased for Fiscal Year 2023/24 in an amount of $100,000 for a total annual amount not to exceed $300,000 and a total agreement amount not to exceed $ 1,100,000.
2. All other terms and conditions of the Agreement remain in full force and effect.
ITEM NO. 4.
First Amendment to Agreement for Services ATTACHMENT 1
Brightview Tree Care Services, Inc.
IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.
Town of Los Gatos: Approved as to Consent:
_______________________________ ______________________________ Laurel Prevetti, Town Manager Fred Freund, Division President Department Approval:
_______________________________________
Nicolle Burnham
Director of Parks and Public Works
Approved as to Form: Attest:
______________________________ ______________________________ Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk
ITEM NO. 4.
Brightview Tree Care Services, Inc.
Agreement for Services
AGREEMENT FOR SERVICES
THIS AGREEMENT is dated for identification this 20th day of June 2023 and is made by and between TOWN OF LOS GATOS, a California municipal corporation, (“Town”), and Brightview Tree Care Services, Inc. (“Service Provider”), identified as a C Corporation and whose address is P.O. Box 31001-2643, Pasadena, CA 91110-2463. This Agreement is made with reference to the following facts.
I. RECITALS
1.1 Town sought proposals for the services described in this Agreement, and Service Provider was found to be the lowest responsible supplier for this purchase.
1.2 Service Provider represents and affirms that it is willing to perform the desired work pursuant to this Agreement.
1.3 Town desires to engage Service Provider to provide tree trimming maintenance services.
1.4 Service Provider warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement. Service Provider acknowledges Town has relied upon these warranties to retain Service Provider.
II. AGREEMENT
2.1 Scope of Services. Service Provider shall provide services as described in that certain Proposal sent to the Town on May 8, 2023, which is hereby incorporated by reference and attached as Exhibit A.
2.2 Term and Time of Performance. The effective date of this Agreement shall begin July 1, 2023 and will continue through June 30, 2028 subject to appropriation of funds, notwithstanding any other provision in this agreement.
2.3 Compliance with Laws. The Service Provider shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Service Provider represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Service Provider to practice its profession. Service Provider shall maintain a Town of Los Gatos business license pursuant to Chapter 14 of the Code of the Town of Los Gatos.
2.4 Sole Responsibility. Service Provider shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.
DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB ATTACHMENT 2
ITEM NO. 4.
Brightview Tree Care Services, Inc.
Agreement for Services
2.5 Information/Report Handling. All documents furnished to Service Provider by the Town and all reports and supportive data prepared by the Service Provider under this Agreement are the Town’s property and shall be delivered to the Town upon the completion of services or at the Town's written request. All reports, information, data, and exhibits prepared or assembled by Service Provider in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Service Provider shall not make any of these documents or information available to any individual or organization not employed by the Service Provider or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Service Provider pursuant to this Agreement are for the purpose of evaluating a defined project, and Town's use of the information contained in the reports prepared by the Service Provider in connection with other projects shall be solely at Town's risk, unless Service Provider expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Service Provider which is and has been confirmed in writing by Service Provider to be a trade secret of Service Provider.
2.6 Compensation: Base compensation for services shall not exceed $200,000 in Fiscal Year 2023/24, and one million dollars over the five year agreement period. Compensation will be subject to Operating Budget Appropriations. Charges as defined in Exhibit A may be increased annually based on the San Francisco-Oakland-San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount. Payment shall be based upon Town approval of each task.
2.7 Billing. Billing shall be monthly by invoice within thirty (30) days of the rendering of the service and shall be accompanied by a detailed explanation of the work performed by whom at what rate and on what date. Also, plans, specifications, documents or other pertinent materials shall be submitted for Town review, even if only in partial or draft form.
Payment shall be net thirty (30) days. All invoices and statements to the Town shall be addressed as follows:
Invoices:
Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
2.8 Availability of Records. Service Provider shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Service Provider shall make these records available to authorized personnel of the Town at the Service Provider offices during business hours upon written request of the Town.
DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB
ITEM NO. 4.
Brightview Tree Care Services, Inc.
Agreement for Services
2.9 Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Service Provider. No portion of these services shall be assigned or subcontracted without the written consent of the Town.
2.10 Independent Contractor. It is understood that the Service Provider, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and not an agent or employee of the Town. As an independent contractor he/she shall not obtain any rights to retirement benefits or other benefits which accrue to Town employee(s). With prior written consent, the Service Provider may perform some obligations under this Agreement by subcontracting, but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Service Provider agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Service Provider shall be compensated for its costs and expenses in preparing for, traveling to, and testifying in such matters at its then current hourly rates of compensation, unless such litigation is brought by Service Provider or is based on allegations of Service Provider's negligent performance or wrongdoing.
2.11 Conflict of Interest. Service Provider understands that its professional responsibilities are solely to the Town. The Service Provider has and shall not obtain any holding or interest within the Town of Los Gatos. Service Provider has no business holdings or agreements with any individual member of the Staff or management of the Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Service Provider warrants that it does not presently and shall not acquire any direct or indirect interest adverse to those of the Town in the subject of this Agreement, and it shall immediately disassociate itself from such an interest, should it discover it has done so and shall, at the Town's sole discretion, divest itself of such interest. Service Provider shall not knowingly and shall take reasonable steps to ensure that it does not employ a person having such an interest in this performance of this Agreement. If after employment of a person Service Provider discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement Service Provider shall promptly notify Town of this employment relationship, and shall, at the Town's sole discretion, sever any such employment relationship.
2.12 Equal Employment Opportunity. Service Provider warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Service Provider nor its subcontractors do and neither shall discriminate against persons employed or seeking employment with them on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or medical condition, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment & Housing Act.
DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB
ITEM NO. 4.
Brightview Tree Care Services, Inc.
Agreement for Services
III. INSURANCE AND INDEMNIFICATION
3.1 Minimum Scope of Insurance:
i. Service Provider agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/her and his/her firm to an amount not less than: two million dollars ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage.
ii. Service Provider agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/her and his/her staff to an amount not less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage. iii. Service Provider shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Service Provider agrees that all certificates and endorsements are to be received and approved by the Town before work commences.
General Liability:
i. The Town, its elected and appointed officials, employees, and agents are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Service Provider; products and completed operations of Service Provider, premises owned or used by the Service Provider. ii. The Service Provider's insurance coverage shall be primary insurance as respects the Town, its elected and appointed officials, employees, and agents. Any insurance or self-insurances maintained by the Town, its officers, officials, employees or volunteers shall be excess of the Service Provider's insurance and shall not contribute with it.
iii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers.
iv. The Service Provider's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability.
3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB
ITEM NO. 4.
Brightview Tree Care Services, Inc.
Agreement for Services
been given to the Town. Current certification of such insurance shall be kept on file at all times during the term of this agreement with the Town Clerk.
3.3 Workers’ Compensation. In addition to these policies, Service Provider shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement.
Further, Service Provider shall ensure that all subcontractors employed by Service Provider provide the required Workers' Compensation insurance for their respective employees.
3.4 Indemnification. The Service Provider shall save, keep, hold harmless and indemnify and defend the Town its elected and appointed officials, agents, employees, and volunteers from all damages, liabilities, penalties, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of, or in the course of performing work which may be occasioned by a willful or negligent act or omissions of the Service Provider, or any of the Service Provider's officers, employees, or agents or any subcontractor.
IV. GENERAL TERMS
4.1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder, nor does waiver of a breach or default under this Agreement constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement.
4.2 Governing Law. This Agreement, regardless of where executed, shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior Court of the County of Santa Clara.
4.3 Termination of Agreement. The Town and the Service Provider shall have the right to terminate this agreement with or without cause by giving not less than fifteen days (15) written notice of termination. In the event of termination, the Service Provider shall deliver to the Town all plans, files, documents, reports, performed to date by the Service Provider.
In the event of such termination, Town shall pay Service Provider an amount that bears the same ratio to the maximum contract price as the work delivered to the Town bears to completed services contemplated under this Agreement, unless such termination is made for cause, in which event, compensation, if any, shall be adjusted in light of the particular facts and circumstances involved in such termination.
4.4 Prevailing Wages. This project is subject to the requirements of Section 1720 et seq. of the California Labor Code requiring the payment of prevailing wages, the training of apprentices and compliance with other applicable requirements. Contractors and all subcontractors who perform work on the project are required to comply with these requirements. Prevailing wages apply to all projects over $1,000 which are defined as a “public work” by the State of California. This includes: construction, demolition, DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB
ITEM NO. 4.
Brightview Tree Care Services, Inc.
Agreement for Services
repair, alteration, maintenance and the installation of photovoltaic systems under a Power Purchase Agreement when certain conditions are met under Labor Code Section 1720.6. This include service and warranty work on public buildings and structures.
4.4.1 The applicable California prevailing wage rate can be found at www.dir.ca.gov and are on file with the Town of Los Gatos Parks and Public Works Department, which shall be available to any interested party upon request. The contractor is also required to have a copy of the applicable wage determination posted and/or available at each jobsite.
4.4.2 Specifically, contractors are reminded of the need for compliance with Labor Code Section 1774-1775 (the payment of prevailing wages and documentation of such), Section 1776 (the keeping and submission of accurate certified payrolls) and 1777.5 in the employment of apprentices on public works projects. Further, overtime, weekend and holiday pay, and shift pay must be paid pursuant to applicable Labor Code section.
4.4.3 The public entity for which work is being performed or the California Department of Industrial Relations may impose penalties upon contractors and subcontractors for failure to comply with prevailing wage requirements. These penalties are up to $200 per day per worker for each wage violations identified; $100 per day per worker for failure to provide the required paperwork and documentation requested within a 10-day window; and $25 per day per worker for any overtime violation.
4.4.4 As a condition to receiving progress payments, final payment and payment of retention on any and all projects on which the payment of prevailing wages is required, the contractor agrees to present to the TOWN, along with its request for payment, all applicable and necessary certified payrolls (for itself and all applicable subcontractors) for the time period covering such payment request.
The term “certified payroll” shall include all required documentation to comply with the mandates set forth in Labor Code Section 1720 et seq, as well as any additional documentation requested by the Agency or its designee including, but not limited to: certified payroll, fringe benefit statements and backup documentation such as monthly benefit statements, employee timecards, copies of wage statements and cancelled checks, proof of training contributions (CAC2 if applicable), and apprenticeship forms such as DAS-140 and DAS-142.
4.4.5 In addition to submitting the certified payrolls and related documentation to the TOWN, the contractor and all subcontractors shall be required to submit certified payroll and related documents electronically to the California Department of Industrial Relations. Failure to submit payrolls to the DIR when mandated by the project parameters shall also result in the withholding of progress, retention and final payment.
4.4.6 No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].
DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB
ITEM NO. 4.
Brightview Tree Care Services, Inc.
Agreement for Services
4.4.7 No contractor or subcontractor may be awarded a contract for public work on a public works project, unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. Contractors MUST be a registered “public works contractor” with the DIR AT THE TIME OF BID. Where the prime contract is less than $15,000 for maintenance work or less than $25,000 for construction alternation, demolition or repair work, registration is not required.
4.4.8 Should any contractor or subcontractors not be a registered public works contractor and perform work on the project, Contractor agrees to fully indemnify the TOWN for any fines assessed by the California Department of Industrial Relations against the TOWN for such violation, including all staff costs and attorney’s fee relating to such fine.
4.4.9 The TOWN shall withhold any portion of a payment; including the entire payment amount, until certified payroll forms and related documentation are properly submitted, reviewed and found to be in full compliance. In the event that certified payroll forms do not comply with the requirements of Labor Code Section 1720 et seq., the TOWN may continue to hold sufficient funds to cover estimated wages and penalties under the contract.
4.5 Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Service Provider.
4.6 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, including costs of appeal.
4.7 Notices. Any notice required to be given shall be deemed to be duly and properly given if mailed postage prepaid, and addressed to:
Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
Brightview Tree Services, Inc.
P.O. Box 31001-2643
Pasadena, CA 91110-2463
or personally delivered to Service Provider to such address or such other address as Service Provider designates in writing to Town.
4.8 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the terms and conditions of this Agreement in respect of the Products or Services and any attachments to this Agreement, then the terms and conditions of this Agreement shall prevail over attachments or other writings.
4.9 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Service Provider. No terms, DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB
ITEM NO. 4.
Brightview Tree Care Services, Inc.
Agreement for Services
conditions, understandings or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party.
IN WITNESS WHEREOF, the Town and Service Provider have executed this Agreement.
Town of Los Gatos by:
Laurel Prevetti, Town Manager
Recommended by:
Jim Harbin
Acting Director of Parks and Public Works
Brightview Tree Services, Inc., by:
Fred Freund, Division President
Approved as to Form:
_____________________________________
Gabrielle Whelan, Town Attorney
Attest:
______________________________________
Wendy Wood, CMC, Town Clerk
DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB
ITEM NO. 4.
DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB
ITEM NO. 4.
PREPARED BY: Stefanie Hockemeyer
Sr. Administrative Analyst
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DATE: April 4, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize a Budget Transfer of Previously Allocated Measure B Funds in the Amount of $1,734,250 from the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) to the Kennedy Road Sidewalk – Los Gatos Boulevard Project (CIP No. 813-0241)
RECOMMENDATION:
Authorize a budget transfer of previously allocated Measure B Funds in the amount of $1,734,250 from the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) to the Kennedy Road Sidewalk – Los Gatos Boulevard Project (CIP No. 813-0241).
BACKGROUND:
In June 2020, the Town of Los Gatos was awarded a Measure B grant from the Valley Transit Authority (VTA) in the amount of $1,734,250 for the design and construction of the Winchester Boulevard Complete Streets Project.
During development of the Capital Improvement Program (CIP) budget for Fiscal Year (FY) 2023/24 – 2027/28, staff suggested that design and construction of the Winchester Boulevard Complete Streets Project not be pursued at this time due to the estimated $72 million design and construction cost. Staff recommended that the existing funds be reallocated to other projects that are in process but not fully funded and Town Council agreed.
On June 6, 2023, staff presented Council with a report on the existing project inventory and the potential uses for the Measure B and GFAR Funding. Measure B funding can only be allocated to projects that were submitted by the Town during the call for projects. The three projects eligible for the Measure B funding were identified as:
ITEM NO. 5.
PAGE 2 OF 3
SUBJECT: Authorize a Budget Transfer of Previously Allocated Measure B Funds in the Amount of $1,734,250 from the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) to the Kennedy Road Sidewalk – Los Gatos Boulevard Project (CIP No. 813-0241)
DATE: April 4, 2024
BACKGROUND (continued):
1. Los Gatos Creek Trail Connector at Highway 9 (CIP No. 832-4505)
2. Kennedy Road Sidewalks Los Gatos Boulevard to Englewood (CIP No. 813-0241)
3. Highway 17 Bicycle and Pedestrian Overcrossing (CIP No. 818-0803) Staff recommended that the Town request that VTA Board of Directors approve reallocation of all Winchester Boulevard Complete Streets Measure B funds to the Kennedy Road Sidewalks project based on the schedules and funding portfolios of the three eligible projects.
At its December 7, 2023 meeting, the VTA Board of Directors approved the reallocation of the previously awarded amount of $1,734,250 in 2016 Measure B Bicycle & Pedestrian Capital Projects funds from the design phase of the Winchester Boulevard Complete Streets project to the construction phase of the Kennedy Road Sidewalk and Class II Bike Lanes project (Attachment 1).
CONCLUSION:
If approved, this Council action would transfer funds and allow the close out of the Winchester Boulevard Complete Streets project as part of the Proposed FY 2024/25 through 2028/29 Capital Improvement Budget.
FISCAL IMPACT:
Budget Costs
GFAR $ 492,386
Grant Funding - 2016 Measure B Bicycle & Pedestrian Funds $ 138,740 Grant - 2016 Measure B Bicycle & Pedestrian Funds
(Requested with this Staff Report) $ 1,734,250
Total Budget $ 2,365,376
Costs
$ -
Total Costs
$ -
Available Balance $ 2,365,376
Kennedy Road Sidewalk - Los Gatos Boulevard Project
CIP No. 813-0241
ITEM NO. 5.
PAGE 3 OF 3
SUBJECT: Authorize a Budget Transfer of Previously Allocated Measure B Funds in the Amount of $1,734,250 from the Winchester Boulevard Complete Streets Project (CIP No. 813-0238) to the Kennedy Road Sidewalk – Los Gatos Boulevard Project (CIP No. 813-0241)
DATE: April 4, 2024
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. Board Memorandum of the December 7, 2023 VTA Board of Directors Meeting approving the shift of $1,734,250 in 2016 Measure B Bicycle & Pedestrian Capital Project funds.
ITEM NO. 5.
ATTACHMENT 1
ITEM NO. 5.
• Shifting $1,734,250 in 2016 Measure B Bicycle & Pedestrian Capital Project funds from the final design phase of the Winchester Boulevard Complete Streets project to the construction phase of the Kennedy Road Sidewalk & Class II Bike Lanes project will allow it to move forward and leverage the 2016 Measure B funds for external grant opportunities.
STRATEGIC PLAN/GOALS:
The 2016 Measure B Program aligns directly with the goals of VTA's Strategic Plan Business Line 2: Delivering Projects and Programs. The 2016 Measure B Bicycle & Pedestrian program provides more choices and funding support to promote cycling and walking and addresses "the current and evolving multimodal needs of Silicon Valley" as stated in the Strategic Plan.
FISCAL IMPACT:
There is no financial impact with this action. Funding for the project was included in the 2016 Measure B Program FY2024/FY2025 Biennial Budget and approved as part of the adoption of the VTA FY2024/FY2025 Biennial Budget in June 2023.
BACKGROUND:
The 2016 Measure B Program office released the first Bicycle & Pedestrian Capital Projects Competitive Grant call-for-projects for the fiscal year (FY) 2020 to FY2030 funding cycle on December 3, 2019. At the time of the call for projects staff projected $79.98 million be available to fund projects in the for the FY2020 to FY2030 funding cycle.
The scoring committee reviewed and scored 39 applications requesting approximately $163 million. The result of the scoring process is the FY2020 to FY2030 2016 Measure B Bicycle & Pedestrian Capital Project 10-year Priority list. This list ranks the 39 projects in score order and is separated into fiscally constrained and unconstrained portions of the 10-year Priority list. The fiscally constrained portion of the list identifies the 19 projects that were awarded funding up to the available $79.98 million. The Board of Directors approved the 10-year Priority list and fiscally constrained portion of the list - identifying what projects will receive funding, at their June 2020 meeting. The approved FY2020 to FY2030 10-year Priority list is shown on Attachment A.
The top 14 projects were fully funded and awarded $67.08 million of the available $79.98 million, leaving a balance of $12.9 million. The 15th ranked project requested over $24 million, with the majority of the request being for construction. As there was not enough available to fully fund the request, project number 15 was awarded partial funding ($3.5 million of $24.10 million) for their Environmental and Design phases. The remaining $9.4 million was then awarded to projects in rank order and ability to be fully funded.
This methodology resulted in 18 fully funded projects and one partially funded project for the FY2020 to FY2030 grant cycle.
6.9
ITEM NO. 5.
DISCUSSION:
The Town of Los Gatos (Town) submitted five applications to the Bicycle & Pedestrian Capital Projects Competitive Grant call-for-projects and was awarded funding for three projects. These three projects, their fund request, and their ranking are as follows:
· #7: Bicycle and Pedestrian Overcrossing over Highway 17 - $2.75 million · #12: Winchester Boulevard Complete Streets Final Design - $1.74 million · #16: Kennedy Road Sidewalk and Class II Bike Lanes - $0.83 million The final two Town projects, their grant requests, and their ranking on the unconstrained portion of the list are as follows:
· #18: Los Gatos Creek Trail Connector to Highway 9 - $2.99 million · #39: Highway 9/Massol Avenue Intersection Safety Improvements - $0.36 million In September 2022, the Board approved the Town’s request to shift $693,560 in construction funding from the Kennedy Road Sidewalk and Class II Bike Lanes Project (Kennedy Road project) to the Los Gatos Creek Trail Connector to Highway 9 project (Trail Connector project) to leverage over $4 million in external grant funds to construct the Trail Connector project. The Board’s action moved the (Trail Connector project) to the fiscally constrained portion of the FY2020 to FY2030 10-year Priority list and defunded the construction phase of the Kennedy Road project.
On June 6, 2023, the Town’s Council approved the closure of the Winchester Boulevard Complete Streets project (Winchester project), citing the estimated cost of over $72 million to design and construct the project. The Council reprogrammed the remaining Town funds from the Winchester project to the Kennedy Road project. At the same meeting, the Town’s Council requested that the VTA Board consider moving the awarded 2016 Measure B Bicycle/Pedestrian Capital Project funds from the now-closed Winchester project to the Kennedy Road project to begin closing the funding gap for completion of the Kennedy Road project.
VTA and the Town have executed a funding agreement for the design phase of the Kennedy Road project, and the Town is moving forward with the design phase.
Though a funding gap remains for delivery of the Kennedy Road project, the 2016 Measure B Program Office supports the Town’s request to move the funding from the Winchester project to the Kennedy Road project for the following reasons:
1) Leaving the award on the closed Winchester project prevents other 2016 Measure B Bicycle/Pedestrian Capital Projects from moving forward. 2) The $1,734,250 in construction funding for the Kennedy Road project can be used as leverage for external grants to close the funding gap.
3) Both projects are on the fiscally constrained list and within the Town of Los Gatos.
6.9
ITEM NO. 5.
If the Board approves this request, the Kennedy Road project award will be increased to $1.87 million ($138,740 for design & $1,734,250 for construction) and the Winchester project award will be decreased to $0.
Next Steps
Should the Board approve the request, staff will begin development of a funding agreement for the construction phase of the Kennedy project when appropriate.
ALTERNATIVES:
The Board can choose not to move the award from the Winchester Boulevard Complete Streets Project to the Kennedy Road Sidewalk & Class II Bike Lanes project. This will lengthen the delivery of the Kennedy Road project, which will then increase the cost to deliver the project. In addition, the Town of Los Gatos has closed the Winchester Complete Streets Project due to design and construction costs, so not moving the award from the project prevents other 2016 Measure B Bicycle/Pedestrian Capital Projects from moving forward since the award is tied to a closed project.
CLIMATE IMPACT:
Improvements to bicycle and pedestrian facilities will improve multi-modal options, perhaps leading to mode shift towards active transportation resulting in potential greenhouse gas reduction.
ADVISORY COMMITTEE DISCUSSION/RECOMMENDATIONS
The Technical Advisory Committee received this item as part of their November 8, 2023, Consent Agenda and approved it unanimously without comment.
The Bicycle & Pedestrian Advisory Committee (BPAC) received this item at their November 8, 2023, meeting. After minimal discussion, the BPAC unanimously recommended this item to the Board of Directors for approval.
The Policy Advisory Committee (PAC) received this item at their November 9, 2023, meeting.
After discussion and clarification on the Winchester Boulevard Complete Streets project limits and boundaries, the PAC recommended this item to Board of Directors for approval.
STANDING COMMITTEE DISCUSSION/RECOMMENDATIONS
The Congestion Management Program and Planning Committee received this item as part of their November 16, 2023, Consent Agenda and approved it unanimously without comment.
Prepared by: Jane Shinn
Memo No. 8761
ATTACHMENTS:
• MT8761_AttachmentA_Appved_2016MB_BikePed_CapProj_PriorityList (PDF) • MT8761_AttachmentB_ProjectDescriptions (PDF)
• Public Comment (PDF)
6.9
ITEM NO. 5.
ATTACHMENT C: 10‐Year Priority Project List
FISCALLY CONSTRAINED LIST
Rank Score Primary Project Sponsor Project Name Fund Request ($ M) Fund Recommended ($M) Cumulative Fund Recommended ($M) Remaining Funds Available ($M) 1 104.7 Mountain View El Camino Real Pedestrian & Bicycle Improvements in City of Mountain View $ 4.00 $ 4.00 $ 4.0 $ 76.0 Fully Funded 2 103.1 Santa Clara Lafayette Street Class IV Bikeway $ 1.20 $ 1.20 $ 5.2 $ 74.8 Fully Funded3 102.5 San Jose Guadalupe River Trail Extension to Almaden $ 5.40 $ 5.40 $ 10.6 $ 69.4 Fully Funded4 99.7 San Jose Thompson Creek Trail $ 2.41 $ 2.41 $ 13.0 $ 67.0 Fully Funded5 98.6 VTA Bernardo Avenue Undercrossing $ 18.00 $ 18.00 $ 31.0 $ 49.0 Fully Funded6 98.4 Los Gatos Bicycle and Pedestrian Overcrossing over Highway 17 $ 2.75 $ 2.75 $ 33.8 $ 46.2 Fully Funded7 98.0 San Jose Five Wounds Trail from Story Road to Mabury Road $ 4.14 $ 4.14 $ 37.9 $ 42.1 Fully Funded8 95.9 Cupertino Junipero Serra Trail, Central Segment $ 4.19 $ 4.19 $ 42.1 $ 37.9 Fully Funded9 94.7 San Jose Coyote Creek Trail Completion $ 6.88 $ 6.88 $ 49.0 $ 31.0 Fully Funded 10 94.5 San Jose Willow‐Keyes (Lelong St ‐ 3rd St) Complete Streets Project $ 7.05 $ 7.05 $ 56.0 $ 24.0 Fully Funded11 94.4 Cupertino Junipero Serra Trail, East Segment $ 1.94 $ 1.94 $ 57.9 $ 22.0 Fully Funded12 93.7 Los Gatos Winchester Boulevard Complete Streets Final Design $ 1.74 $ 1.74 $ 59.7 $ 20.3 Fully Funded13 93.4 Mountain View Stevens Creek Trail Extension to W. Remington Drive and MVHS $ 4.80 $ 4.80 $ 64.5 $ 15.5 Fully Funded14 91.5 San Jose Los Gatos Creek Trail Gap Closure $ 2.59 $ 2.59 $ 67.1 $ 12.9 Fully Funded15 91.3 Sunnyvale Stevens Creek Trail Extension (W Remington Dr to W Fremont Ave) (1) $ 24.10 $ 3.50 $ 70.6 $ 9.4 Partially Funded16 90.7 Los Gatos Kennedy Road Sidewalk and Class II Bike Lanes $ 0.83 $ 0.83 $ 71.4 $ 8.6 Fully Funded17 90.3 VTA Bascom Complete Street Improvements (Hamilton to I‐880) $ 6.84 $ 6.84 $ 78.3 $ 1.7 Fully Funded18 89.1 Los Gatos Los Gatos Creek Trail Connector to Highway 9 (2) $ 2.99 $ ‐ $ 78.3 19 88.4 Santa Clara Saratoga Creek Trail (Homeridge Park to Central Park) Project (2) $ 2.65 $ ‐ $ 78.320 88.3 Cupertino Carmen Road Pedestrian/Bicycle Bridge (2) $ 2.84 $ ‐ $ 78.321 87.8 San Jose King Road Complete Streets Project (2) $ 3.30 $ ‐ $ 78.322 86.7 Santa Clara Kifer/Walsh Class IV Bikeway (2) $ 2.70 $ ‐ $ 78.323 85.7 Morgan Hill Madrone Channel Trail Improvements ‐ Phase 2 $ 0.34 $ 0.34 $ 78.6 $ 1.4 Fully Funded 24 85.3 San Jose Lower Guadalupe River Access Ramps (2) $ 2.47 $ ‐ $ 78.6 25 85.1 Cupertino Stevens Creek Blvd Class IV Separated Bikeway (2) $ 3.16 $ ‐ $ 78.626 84.5 VTA Homestead Road Safe Routes to School Improvements $ 1.17 $ 1.17 $ 79.8 $ 0.2 Fully Funded $ 79.8
Notes:1. Project will be partially funded for Environmental Clearance and Design phases.2. Projects cannot be fully funded due to limited available funds.
Fiscally Contrained List ‐ Total Funds Recommended
Adopted by the VTA Board of Directors on June 4, 2020 6.9.a Page 35 ITEM NO. 5.
ATTACHMENT C: 10‐Year Priority Project List
UNCONSTRAINED LIST
Rank Score Primary Project Sponsor Project Name Fund Request ($ M) Fund Recommended ($M) Cumulative Fund Recommended ($M) Remaining Funds Available ($M) 27 83.3 Saratoga Blue Hills Elementary Pedestrian Safety Crossing at UPRR $ 1.11 28 82.7 San Jose Keyes/Story Complete Streets Project $ 5.64 29 82.0 Santa Clara Monroe Street Class II Buffered Bikeway $ 0.81 30 78.7 Santa Clara County Alum Rock Avenue Trail Improvement Project $ 5.68 31 78.2 Saratoga Saratoga Village to Quarry Park Walkway ‐ Phase I $ 1.00 32 77.7 Santa Clara El Camino Real Class IV Bikeway & Pedestrian Improvements $ 10.35 33 75.3 Mountain View Evelyn Avenue Bikeway $ 1.16 34 73.6 VTA Tasman Drive Complete Streets Improvements (Milpitas BART to Guadalupe River Trail) $ 7.40 35 71.0 Gilroy Lions Creek Trail West (Day Road to Kern Avenue) $ 2.72 36 70.4 Santa Clara Benton Street Class II Buffered Bikeway $ 1.02 37 65.0 Santa Clara Pruneridge Avenue Class II Buffered Bikeway & Pedestrian Improvements $ 2.86 38 63.3 Los Altos Homestead Road Safe Routes to School and Community Connector Project: Grant Road and Vineyard Drive $ 2.32 39 59.9 Los Gatos Highway 9/ Massol Avenue Intersection Safety Improvements $ 0.36 All Eligible Projects ‐ Total Funds Request $ 162.88 Adopted by the VTA Board of Directors on June 4, 2020 6.9.a Page 36 ITEM NO. 5.
Attachment B – Town of Los Gatos Bicycle & Pedestrian Projects Descriptions Kennedy Road Sidewalk and Class II Bike Lanes
The project will design and construct new sidewalks and Class II bike lanes on Kennedy Road between Los Gatos Boulevard and Englewood Avenue, all located within the Town of Los Gatos. The project improvements include approximately 2,100 feet of new sidewalks, new Class II bike lanes on both sides for approximately 2,020 feet, upgrade of ADA curb ramps, and intersection improvements for better biking and walking.
Winchester Boulevard Complete Streets Final Design
This project will fund the final design for Complete Streets improvements, including removal of an automobile lane, separated bike lanes, new or upgraded pedestrian crossings, new sidewalks to fill the gaps, sidewalk improvements, pedestrian refuge islands, ADA upgrade to all bus stops, landscaped median islands, and intersection modifications for safer biking and walking. The deliverable of this phase of the project is the bid-ready document for construction.
6.9.b
ITEM NO. 5.
From: Betsy Megas
Sent: Monday, November 6, 2023 2:04 PM
To: Ledbetter, Lauren; VTA Board Secretary; Banerjee, Stacy Subject: [EXTERNAL] BPAC 11/8/23 - Item 9 - Winchester to Kennedy CAUTION: This Message originated from outside VTA. Do not click links or open attachments unless you recognize the sender and know the content is safe!
Hi Lauren,
Here are my questions for item 9.
What was driving the high cost of the Winchester improvements? Why was the price not originally anticipated? What is changing to make better cost estimates and avoid false starts in the future?
Will there ever be an opportunity to try again for the improvements on Winchester? Thanks,
Betsy Megas
Public Comment
6.9.c
ITEM NO. 5.
PREPARED BY: Eric Lemon
Finance and Accounting Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DATE: April 9, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive the Monthly Financial and Investment Report for February 2024 RECOMMENDATION:
Receive the Monthly Financial and Investment Report for February 2024.
BACKGROUND:
California Government Code Section 41004 requires that the Town Treasurer submit to the Town Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The Finance Director assumes the Town Treasurer role.
Attachment 1 contains the February 2024 Monthly Financial and Investment Report which fulfills this requirement. The February 2024 Monthly Financial and Investment Report was received by the Finance Commission on April 8, 2024.
DISCUSSION:
The February 2024 Monthly Financial and Investment Report includes a Fund Balance Schedule, representing estimated funding available for all funds at the end of the respective month. The fund balances were estimated at a point in time and will be finalized at the final close of the fiscal year.
Please note that the amount in the Fund Schedule differs from the Portfolio Allocation and Treasurer’s Cash Fund Balances Summary schedule because assets and liabilities are components of the fund balance.
ITEM NO. 6.
PAGE 2 OF 3
SUBJECT: Monthly Financial and Investment Report for February 2024 DATE: April 9, 2024
DISCUSSION (continued):
As illustrated in the summary below, Total Cash is adjusted by the addition of Total Assets less the amount of Total Liabilities to arrive at the Ending Fund Balance – which represents the actual amount of funds available.
As of February 29, 2024, the Town’s financial position (Assets $85.07M, Liabilities $27.51M, and Fund Equity $57.56M) remains strong and there are no issues meeting financial obligations in the near future.
As of February 29, 2024, the Town’s weighted portfolio yield for investments under management was 4.32% which was 20 basis points above the Local Agency Investment Fund (LAIF) yield of 4.12% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 218 days versus the Town’s longer WAM of 682 days. The longer maturity (WAM) for Town assets under management reflects the Town’s strategy to take advantage of higher yields associated with longer maturities balanced with shorter term yields available on investments held with the State’s LAIF. The Town’s weighted average rate of return on investments under management of 4.32% at the close of February was 9 basis points higher when compared to the prior month’s return of 4.23% reported as of January 31, 2024.
Since February 2023, LAIF yields had climbed from 262 basis points (2.62%) to 412 basis points (4.12%) through the end of February 2024.
Staff, in coordination with the Town’s investment advisor, primarily replaced maturing investments with long term maturities in the two-to-four-year maturity range. These investments capture current yields that exceed the rates expected to be earned in the LAIF pool during that same time period. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing.
On March 22, 2023, the Federal Reserve voted to approve a ¼ percentage basis point increase from 4.75% to 5.00%. This action was followed with additional hikes in May 2023 from 5.00% to 5.25% and July from 5.25 % to 5.5 %. Through these actions over time, the Federal Open Market Committee’s (FOMC) goal is to bring year to year inflation to its targeted level of 2%.
ITEM NO. 6.
PAGE 3 OF 3
SUBJECT: Monthly Financial and Investment Report for February 2024 DATE: April 9, 2024
DISCUSSION (continued):
The labor market data was strong. Employment rose by 353,000 jobs in January, exceeding the consensus estimate for 185,000, albeit the data may have reflected some seasonal adjustment complications. Wage growth was surprisingly strong at 0.6% month-on-month, up 4.5% yearon-year from 4.3%. The unemployment rate was unchanged at 3.7%, partly due to the participation rate remaining at 62.5%.
The Town's investments are in compliance with the Town's Investment Policy dated February 21, 2023, and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.
CONCLUSION:
Receive Monthly Financial and Investment Report for February 2024.
Attachment:
1. Financial and Investment Report (February 2024)
ITEM NO. 6.
Weighted Average YTM Portfolio Yield on Investments
under Management 4.32%
Weighted Average Maturity (days) 682
This Month Last Month One year ago
Portfolio Allocation & Treasurer's Cash Balances $71,152,030 $72,393,065 $69,108,644 Cert. of Participation 2002 Lease Payment Fund
Managed Investments $49,463,891
Local Agency Investment Fund $11,391,357
Reconciled Demand Deposit Balances $10,296,783
Portfolio Allocation & Treasurer's Cash Balances $71,152,030 Benchmarks/ References:
Town's Average Yield 4.32% 4.23% 2.66%
LAIF Yield for month 4.12% 4.01% 2.62%
3 mo. Treasury 5.39% 5.38% 4.85%
6 mo. Treasury 5.32% 5.20% 5.18%
2 yr. Treasury 4.62% 4.21% 4.82%
5 yr. Treasury (most recent) 4.25% 3.84% 4.19%
10 Yr. Treasury 4.25% 3.91% 3.93%
Town of Los Gatos
Summary Investment Information
February 29, 2024
0 - 1 year
38%
1 - 2 years
17%
2 - 3 years
13%
3 - 5 years
32%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated February 21, 2023 and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.
1 ATTACHMENT 1 Page 42
ITEM NO. 6.
Month YTD
Cash & Investment Balances - Beginning of Month/Period $ 72,393,064.72 $ 78,384,947.79 Receipts 3,732,973.50 44,733,074.15
Disbursements (4,974,007.87) (51,965,991.59)
Cash & Investm Cash & Investment Balances - End of Month/Period $71,152,030.35 $71,152,030.35 Portfolio Allocation Amount % of Portfolio
Max. % or $ Allowed
per State Law or Policy
BNY MM $27,261.53 0.04% 20% of Town Portfolio
US Treasury Notes $19,802,509.31 32.54% No Max. on US Treasuries Government Agency Debenture Notes $15,777,961.90 25.93% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,856,158.01 22.77% 30% of Town Portfolio Local Agency Investment Fund $11,391,356.50 18.72% $75 M per State Law Subtotal - InSubtotal - Investments 60,855,247.25 100.00% Reconciled Demand Deposit Balances 10,296,783.10
Total Portfolio Allocation & Treasurer's Cash Balances $71,152,030.35
0.0401
0.0388
Town of Los Gatos
Portfolio Allocation & Treasurer's Cash Balances
February 29, 2024
BNY MM
0.04%
US Treasury Notes
32.54%
Government Agency Debenture
Notes
25.93%
Corporate Medium Term Bonds
22.8%
Local Agency Investment Fund
18.7%
Portfolio Investment Allocation
$69.1 M $71.2 M
$0.0 M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
$70.0 M
$80.0 M
$90.0 M
Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Treasurer's Fund Balances
2
ITEM NO. 6.
February 2024 February 2024 February 2024
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:
Cert. of Participation 2002 Series A Reserve Fund $ 715,454.34 $ - $ 2,927.32 $ 29,203.34 $ 689,178.32 Note 1 Cert. Of Participation 2010 Ser A Lease Pymt Fund 114,162.50 - 100.71 114,162.50 100.71 Note 1 Cert. of Participation 2002 Lease Payment Fund 110,501.86 29,203.34 89.05 110,500.00 29,294.25 Note 1 Cert. of Participation 2010 Series Reserve Fund 1,359,255.83 6,024.99 1,365,280.82 Note 2 Total Restricted Funds: $ 2,299,374.53 $ 29,203.34 $ 9,142.07 $ 253,865.84 $ 2,083,854.10 CEPPT IRS Section 115 Trust 1,456,631.96 690,000.00 544.16 $ 2,147,176.12 Note 3 Grand Total COP's and CEPPT Trust $ 3,756,006.49 $ 719,203.34 $ 9,686.23 $ 253,865.84 $ 4,231,030.22 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.
Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs.
Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010.
Note 3: The CEPPT Section IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other post employment benefits.
Town of Los Gatos
Non-Treasury Restricted Fund Balances
February 29, 2024
3
ITEM NO. 6.
July 2023 $ 133,845.42
August 2023 $ 131,615.82
September 2023 $ 158,361.71
October 2023 $ 149,112.14
November 2023 $ 163,137.22
December 2023 $ 177,498.26
January 2024 $ 183,950.61
February 2024 $ 183,453.40
March 2024 -
April 2024 -
May 2024 -
June 2024 -
$ 1,280,974.58
Town of Los Gatos
Statement of Interest Earned
February 29, 2024
4
ITEM NO. 6.
Orginal Issue Market Value Maturity Yield to Interest Interest Interest Days Deposit Par Original (Discount) Market Above (Under) Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Coupon Date Value Cost Premium Value Cost Interest Call Date or Call to Date Prior Yrs. Current FY Maturity FFCB 3133EMBE1 Gov. Agency Debenture 0.30% 10/8/2020 1,600,000.00 1,598,000.00 (2,000.00) 1,593,632.00 (4,368.00) 3/28/2024 0.34% $ 14,253.34 $ 14,655.57 $ 3,593.93 28 Apple 037833DB3 Corporate Bond 2.90% 12/20/2022 1,300,000.00 1,228,591.00 (71,409.00) 1,226,095.00 (2,496.00) 6/21/2027 4.19% $ 27,437.22 $ 28,170.97 $ 35,800.61 1208 Home Depot 437076BM3 Corporate Bond 3.00% 8/4/2022 1,000,000.00 991,960.00 (8,040.00) 962,830.00 (29,130.00) 1/1/2026 3.04% $ 34,750.00 $ 29,252.66 $ 21,629.24 672 US Treasury 912828ZW3 US Treasury Note 0.25% 8/9/2022 350,000.00 322,096.88 (27,903.12) 329,343.00 7,246.12 6/30/2025 3.16% $ 1,217.39 $ 9,366.72 $ 7,032.24 487 IBM 459200JY8 Corporate Bond 3.00% 3/25/2021 1,000,000.00 1,071,040.00 71,040.00 994,940.00 (76,100.00) 5/15/2024 0.71% $ 79,166.67 $ 16,751.96 $ 4,942.54 76 FFCB 3133EN5V8 Gov. Agency Debenture 4.13% 1/17/2023 236,000.00 239,174.20 3,174.20 233,654.16 (5,520.04) 1/11/2027 3.76% $ 9,572.75 $ 4,016.30 $ 5,975.48 1047 US Treasury 91282CBT7 US Treasury Note 0.75% 9/30/2022 800,000.00 712,565.18 (87,434.82) 739,472.00 26,906.82 3/31/2026 4.14% $ 6,000.00 $ 23,165.06 $ 20,704.30 761 FFCB 3133ENP95 Gov. Agency Debenture 4.25% 9/30/2022 900,000.00 900,939.60 939.60 892,017.00 (8,922.60) 9/30/2025 4.14% $ 38,250.00 $ 28,374.86 $ 25,360.68 579 American Honda 02665WCZ2 Corporate Bond 2.40% 11/27/2019 1,000,000.00 1,012,410.01 12,410.01 989,950.00 (22,460.01) 6/27/2024 2.12% $ 108,733.34 $ 76,483.79 $ 14,234.97 119 JP Morgan Chase 46625HRS1 Corporate Bond 3.20% 9/23/2022 500,000.00 474,660.00 (25,340.00) 481,270.00 6,610.00 3/15/2026 4.70% $ 19,644.44 $ 17,865.15 $ 15,568.20 745 Honeywell Int'l. 438516BW5 Corporate Bond 2.30% 11/20/2019 1,000,000.00 1,014,660.00 14,660.00 986,160.00 (28,500.00) 7/15/2024 1.64% $ 96,983.33 $ 71,679.55 $ 13,269.96 137 Caterpillar Financial Serv 14913Q2V0 Corporate Bond 2.85% 2/23/2021 1,000,000.00 1,077,370.00 77,370.00 993,910.00 (83,460.00) 5/17/2024 0.44% $ 77,900.00 $ 10,677.18 $ 3,039.94 78 FNMA 3135G0V75 Gov. Agency Debenture 1.75% 10/17/2019 1,100,000.00 1,105,833.30 5,833.30 1,086,646.00 (19,187.30) 7/2/2024 1.63% $ 81,331.25 $ 66,718.86 $ 12,040.98 124 FFCB 3133EKQA7 Gov. Agency Debenture 2.08% 10/21/2019 1,000,000.00 1,019,780.00 19,780.00 983,520.00 (36,260.00) 9/10/2024 1.66% $ 80,831.11 $ 61,888.40 $ 11,202.35 194 FHLB 3135G05X7 Gov. Agency Debenture 0.38% 6/10/2022 1,200,000.00 1,102,952.40 (97,047.60) 1,124,076.00 21,123.60 8/25/2025 3.04% $ 7,687.50 $ 36,626.55 $ 23,212.67 543 US Treasury 912828ZL7 US Treasury Note 0.38% 4/12/2022 1,700,000.00 1,583,927.57 (116,072.43) 1,612,739.00 28,811.43 4/30/2025 2.72% $ 9,879.49 $ 54,017.06 $ 29,685.05 426 FHLB 3130AQF65 Gov. Agency Debenture 1.25% 11/30/2022 1,300,000.00 1,160,559.40 (139,440.60) 1,189,760.00 29,200.60 12/21/2026 4.15% $ 17,197.92 $ 29,385.32 $ 33,820.85 1026 US Treasury 912828X70 US Treasury Note 2.00% 12/30/2019 1,000,000.00 1,010,589.29 10,589.29 994,570.00 (16,019.29) 4/30/2024 1.75% $ 76,703.30 $ 61,478.37 $ 11,737.65 61 US Treasury 912828XT2 US Treasury Note 2.00% 10/31/2019 1,000,000.00 1,015,667.41 15,667.41 991,760.00 (23,907.41) 5/31/2024 1.64% $ 81,639.34 $ 60,792.37 $ 11,086.20 92 FHLB 3130APJH9 Gov. Agency Debenture 1.00% 1/17/2023 1,000,000.00 907,010.00 (92,990.00) 928,120.00 21,110.00 10/28/2026 4.17% $ 8,354.17 $ 15,544.14 $ 23,126.64 972 FFCB 3133EN5N6 Gov. Agency Debenture 4.00% 2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,674,925.00 (31,807.00) 1/6/2028 3.91% $ 61,955.56 $ 25,921.64 $ 44,541.41 1407 Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.38% 5/1/2023 750,000.00 689,032.50 (60,967.50) 700,365.00 11,332.50 9/23/2025 3.97% $ 1,109.37 $ 4,638.18 $ 18,861.95 572 American Honda 02665WED9 Corporate Bond 4.70% 5/11/2023 600,000.00 608,856.00 8,856.00 597,174.00 (11,682.00) 1/12/2028 4.34% $ 18,878.33 $ 3,603.61 $ 17,585.62 1413 US Treasury 91282CEF4 US Treasury Note 2.50% 6/9/2023 1,500,000.00 1,416,626.12 (83,373.88) 1,417,845.00 1,218.88 3/31/2027 4.09% $ 11,577.87 $ 3,416.23 $ 39,693.39 1126 US Treasury 91282CGA3 US Treasury Note 4.00% 6/20/2023 2,100,000.00 2,080,558.59 (19,441.41) 2,073,834.00 (6,724.59) 12/15/2025 4.40% $ 40,852.46 $ 2,515.25 $ 61,372.02 655 Colgate-Palmolive 194162AR4 Corporate Bond 4.60% 7/14/2023 500,000.00 504,655.00 4,655.00 503,620.00 (1,035.00) 2/1/2028 4.37% $ 3,002.79 $ - $ 13,849.34 1433 FannieMae 3135G06G3 Gov. Agency Debenture 0.50% 7/14/2023 500,000.00 455,157.00 (44,843.00) 466,025.00 10,868.00 11/7/2025 4.63% $ 784.72 $ - $ 13,752.31 617 FFCB 3133EPQC2 Gov. Agency Debenture 4.63% 7/17/2023 500,000.00 501,957.50 1,957.50 500,210.00 (1,747.50) 7/17/2026 4.48% $ 11,562.50 $ - $ 13,976.42 869 FFCB 3133EPBM6 Gov. Agency Debenture 4.13% 7/14/2023 600,000.00 596,220.00 (3,780.00) 593,892.00 (2,328.00) 8/23/2027 4.29% $ 15,056.25 $ - $ 16,175.10 1271 PNC Bank 69353RFJ2 Corporate Bond 3.25% 7/25/2023 1,000,000.00 921,490.00 (78,510.00) 929,340.00 7,850.00 12/23/2027 5.23% $ 15,979.17 $ - $ 30,166.06 1393 US Treasury 91282CFU0 US Treasury Note 4.13% 7/31/2023 1,300,000.00 1,290,660.60 (9,339.40) 1,288,781.00 (1,879.60) 10/31/2027 4.31% $ 13,406.25 $ - $ 32,574.43 1340 Toyota Motor Credit 89236TKL8 Corporate Bond 5.45% 8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,631,296.00 14,128.00 11/10/2027 5.16% $ 18,166.67 $ - $ 42,815.41 1350 US Treasury 912810FE3 US Treasury Note 5.50% 10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,257,756.00 19,548.86 8/15/2028 4.76% $ 24,211.96 $ - $ 23,740.63 1629 Pepsico Inc 713448DF2 Corporate Bond 2.85% 10/16/2023 1,000,000.00 947,570.00 (52,430.00) 961,100.00 13,530.00 11/24/2025 5.24% $ 10,133.33 $ - $ 19,879.54 634 FFCB 3133EPUW3 Gov. Agency Debenture 4.75% 10/13/2023 1,000,000.00 994,338.00 (5,662.00) 1,004,380.00 10,042.00 5,541.67 9/1/2026 4.96% $ (5,541.67) $ - $ 18,835.74 915 Freddie Mac 3137EAEP0 Gov. Agency Debenture 1.50% 10/13/2023 1,000,000.00 951,540.00 (48,460.00) 0.00 (951,540.00) 2/12/2025 5.32% $ 4,958.33 $ - $ 19,515.48 349 US Treasury 91282CEW7 US Treasury Note 3.25% 10/16/2023 1,000,000.00 950,039.06 (49,960.94) 964,770.00 14,730.94 6/30/2027 4.73% $ 6,711.96 $ - $ 17,131.53 1217 US Treasury 91282CEN7 US Treasury Note 2.75% 10/31/2023 1,300,000.00 1,214,336.39 (85,663.61) 1,236,378.00 22,041.61 4/30/2027 4.82% $ - $ - $ 19,968.28 1156 US Treasury 912828YV6 US Treasury Note 1.50% 11/15/2023 700,000.00 673,667.97 (26,332.03) 681,107.00 7,439.03 11/30/2024 5.26% $ 430.33 $ - $ 10,375.29 275 US Treasury 91282CAB7 US Treasury Note 0.25% 11/15/2023 675,000.00 623,900.39 (51,099.61) 632,893.50 8,993.11 7/31/2025 4.92% $ 353.09 $ - $ 9,170.45 518 US Treasury 91282CGU9 US Treasury Note 3.88% 11/30/2023 1,000,000.00 983,515.62 (16,484.38) 988,090.00 4,574.38 6,458.33 3/31/2025 5.17% $ (6,458.33) $ - $ 12,741.20 396 US Treasury 91282CCH2 US Treasury Note 1.25% 12/21/2023 900,000.00 798,647.55 (101,352.45) 791,649.00 (6,998.55) 6/30/2028 3.99% $ 305.71 $ - $ 6,449.53 1583 FNMA 3135G0Q22 Gov. Agency Debenture 1.88% 12/21/2023 900,000.00 845,676.00 (54,324.00) 843,255.00 (2,421.00) 4,078.12 9/24/2026 4.22% $ (4,078.12) $ - $ 7,008.80 938 US Treasury 91282CFB2 US Treasury Note 2.75% 1/2/2024 1,000,000.00 960,354.91 (39,645.09) 948,160.00 (12,194.91) 7/31/2027 3.95% $ 2,167.12 $ - $ 6,130.52 1248 US Treasury 91282CHE4 US Treasury Note 3.63% 1/17/2024 1,800,000.00 1,775,185.72 (24,814.28) 1,751,346.00 (23,839.72) 8,557.37 5/31/2028 3.97% $ (8,557.37) $ - $ 8,355.54 1553 JP Morgan Chase 46647PDG8 Corporate Bond 4.85% 2/1/2024 1,400,000.00 1,396,528.00 (3,472.00) 1,384,782.00 (11,746.00) 1,131.90 7/25/2027 4.93% $ (1,131.90) $ - $ 5,286.39 1242 US Bancorp 91159HJF8 Corporate Bond 4.55% 2/5/2024 1,000,000.00 989,200.00 (10,800.00) 975,900.00 (13,300.00) 1,642.33 7/22/2027 4.89% $ (1,642.33) $ - $ 3,195.69 1239 Treasury 91282CHB0 US Treasury Note 3.63% 2/23/2024 1,175,000.00 1,151,962.92 (23,037.08) 1,151,500.00 (462.92) 11,701.58 5/15/2026 4.56% $ (11,701.58) $ - $ 870.40 806 FHLB 3130AXB31 Gov. Agency Debenture 4.88% 2/27/2024 1,000,000.00 1,003,060.00 3,060.00 1,004,410.00 1,350.00 21,395.83 3/13/2026 4.72% $ (21,395.83) $ - $ 258.91 743 Subtotal $ 50,686,000.00 $ 49,436,629.22 $ (1,249,370.78) $ 48,289,247.66 $ (1,147,381.56) $ 60,507.13 $ 1,078,629.20 $ 757,005.75 $ 861,341.88 BNY MM Money Market 27,261.53 27,261.53 0.00 0.00% 1
LAIF State Investment Pool 11,391,356.50 11,317,804.00 (73,552.50) 4.12% 331,373.55 1 60,855,247.25 $59,634,313.19 ($1,220,934.06) $60,507.13 $ 1,078,629.20 $ 757,005.75 $ 1,192,715.43 Matured Assets
PNC Financial 69349LAM0 Corporate Bond 3.80% 2/7/2022 1,000,000.00 1,033,470.00 33,470.00 7/25/2023 1.49% $ 55,733.33 $ 20,987.56 $ 1,032.85 US Treasury 91282CCN9 US Treasury Note 0.13% 1/13/2022 1,200,000.00 1,188,375.00 (11,625.00) 7/31/2023 0.75% $ 2,323.37 $ 13,176.45 $ 766.36 Toyota Motor Credit 89236THA6_1 Corporate Bond 1.35% 4/12/2021 500,000.00 510,580.00 10,580.00 8/25/2023 0.45% $ 15,993.75 $ 5,065.91 $ 350.67 Toyota Motor Credit 89236THA6 Corporate Bond 1.35% 1/11/2022 1,100,000.00 1,107,315.00 7,315.00 8/25/2023 0.94% $ 24,090.00 $ 15,144.57 $ 1,585.23 US Treasury 91282CDA6 US Treasury Note 0.25% 1/31/2022 1,100,000.00 1,085,222.44 (14,777.56) 9/30/2023 1.07% $ 4,570.74 $ 16,417.94 $ 2,932.91 American Honda 02665WCQ2 Corporate Bond 3.63% 9/14/2021 950,000.00 1,012,871.00 62,871.00 10/10/2023 0.41% $ 71,362.15 $ 7,316.05 $ 1,141.03 FFCB 3133EMCQ3 Gov. Agency Debenture 0.28% 10/16/2020 2,000,000.00 1,998,000.00 (2,000.00) 10/13/2023 0.31% $ 16,753.33 $ 16,950.71 $ 1,803.27 US Treasury 91282CAP6 US Treasury Note 0.13% 6/30/2021 1,000,000.00 995,390.63 (4,609.37) 10/15/2023 0.33% $ 2,865.44 $ 6,520.12 $ 955.69 US Treasury 91282CDD0 US Treasury Note 0.38% 1/13/2022 1,100,000.00 1,090,675.78 (9,324.22) 10/31/2023 0.85% $ 7,406.77 $ 13,599.56 $ 3,138.36 US Treasury 91282CAW1 US Treasury Note 0.25% 7/15/2021 1,200,000.00 1,199,437.50 (562.50) 11/15/2023 0.27% $ 7,002.72 $ 6,348.21 $ 1,225.25 US Treasury 912828U57 US Treasury Note 2.13% 7/31/2019 1,000,000.00 1,011,875.00 11,875.00 11/30/2023 1.84% $ 92,083.33 $ 72,526.17 $ 7,759.79 FFCB 3133EJ3Q0 Gov. Agency Debenture 2.88% 8/28/2019 1,500,000.00 1,587,503.75 87,503.75 12/21/2023 2.12% $ 164,473.96 $ 87,804.46 $ 10,897.27 US Treasury 912828V23 US Treasury Note 2.25% 11/29/2021 1,000,000.00 1,032,933.04 32,933.04 12/31/2023 0.66% $ 46,956.52 $ 10,649.43 $ 3,390.13 US Treasury 91282CBE0 US Treasury Note 0.13% 9/15/2021 650,000.00 647,615.46 (2,384.54) 1/15/2024 0.28% $ 1,894.37 $ 3,281.18 $ 999.93 US Treasury 91282CBE0_2 US Treasury Note 0.13% 10/7/2021 1,000,000.00 994,768.98 (5,231.02) 1/15/2024 0.36% $ 2,839.67 $ 6,137.79 $ 1,935.69 FFCB 3133EKMX1 Gov. Agency Debenture 2.23% 8/2/2019 1,000,000.00 1,014,400.00 14,400.00 2/23/2024 1.90% $ 107,225.83 $ 74,902.07 $ 12,483.68 US Bancorp 91159HHV5 Corporate Bond 3.38% 12/24/2019 1,000,000.00 1,049,040.00 49,040.00 2/5/2024 2.12% $ 138,843.75 $ 76,859.43 $ 13,169.06 JP Morgan Chase 46625HJT8 Corporate Bond 3.88% 9/23/2019 1,400,000.00 1,485,414.00 85,414.00 2/1/2024 2.39% $ 236,288.89 $ 130,689.90 $ 20,515.28 FHLB 3130ALH98 Gov. Agency Debenture 0.25% 2/26/2021 1,000,000.00 997,610.00 (2,390.00) 2/26/2024 0.33% $ 7,500.00 $ 7,713.30 $ 2,176.70 Total Investments "Matured" $ 88,259.16
Total Interest FY 23_24 Matured and Current $ 1,280,974.58 Maturity Profile Amount Percent
0-1 year $ 22,969,176.01 38%
1-2 years $10,681,610.55 18%
2-3 years $7,990,963.20 13%
3-5 years $ 19,213,497.49 32%
$60,855,247.25
Town of Los Gatos
Investment Schedule
February 29, 2024
5
ITEM NO. 6.
Date Cusip/Id Description Transaction Type
Settlement
Date Par Coupon
Maturity
Date Price Principal Interest
Transaction
Total
2/1/2024 46647PDG8
JPMORGAN CHASE & CO 4.851% 25JUL2028
(CALLABLE 25JUL27) PURCHASE 2/1/2024 1,400,000 485.100% 7/25/2028 99.75 1,396,528.00 1,131.90 1,397,659.90 2/1/2024 46625HJT8 JPMORGAN CHASE & CO 3.875% 01FEB2024 BOND INTEREST 2/1/2024 1,400,000 387.500% 2/1/2024 - - 27,125.00 27,125.00 2/1/2024 46625HJT8 JPMORGAN CHASE & CO 3.875% 01FEB2024 REDEMPTION 2/1/2024 1,400,000 387.500% 2/1/2024 100.00 1,400,000.00 - 1,400,000.00 2/2/2024 Cash-USD Cash-USD
SHORT TERM INVESTMENT
FUND INCOME 2/2/2024 617 0.000% 100.00 - - 617.28
2/5/2024 91159HJF8
US BANCORP 4.548% 22JUL2028 (CALLABLE
22JUL27) PURCHASE 2/5/2024 1,000,000 454.800% 7/22/2028 98.92 989,200.00 1,642.33 990,842.33 2/5/2024 91159HHV5 US BANCORP 3.375% 05FEB2024 CALLABLE BOND INTEREST 2/5/2024 1,000,000 337.500% 2/5/2024 - - 16,875.00 16,875.00 2/5/2024 91159HHV5 US BANCORP 3.375% 05FEB2024 CALLABLE REDEMPTION 2/5/2024 1,000,000 337.500% 2/5/2024 100.00 1,000,000.00 - 1,000,000.00 2/12/2024 3137EAEP0 FREDDIE MAC 1.5% 12FEB2025 BOND INTEREST 2/12/2024 1,000,000 150.000% 2/12/2025 - - 7,500.00 7,500.00 2/15/2024 438516BW5
HONEYWELL INTERNATIONAL 2.3%
15AUG2024 (CALLABLE 15JUL24) BOND INTEREST 2/15/2024 1,000,000 230.000% 8/15/2024 - - 11,500.00 11,500.00 2/15/2024 912810FE3 USA TREASURY 5.5% 15AUG2028 BOND INTEREST 2/15/2024 1,200,000 550.000% 8/15/2028 - - 33,000.00 33,000.00 2/23/2024 91282CHB0 USA TREASURY 3.625% 15MAY2026 PURCHASE 2/23/2024 1,175,000 362.500% 5/15/2026 98.04 1,151,962.92 11,701.58 1,163,664.50 2/23/2024 3133EPBM6
FEDERAL FARM CREDIT BANK 4.125%
23AUG2027 BOND INTEREST 2/23/2024 600,000 412.500% 8/23/2027 - - 12,375.00 12,375.00 2/23/2024 3133EKMX1 FEDERAL FARM CREDIT BANK 2.23% 23FEB20BOND INTEREST 2/23/2024 1,000,000 223.000% 2/23/2024 - - 11,150.00 11,150.00 2/23/2024 3133EKMX1 FEDERAL FARM CREDIT BANK 2.23% 23FEB20REDEMPTION 2/23/2024 1,000,000 223.000% 2/23/2024 100.00 1,000,000.00 - 1,000,000.00 2/26/2024 713448DF2
PEPSICO INC 2.85% 24FEB2026 (CALLABLE
24NOV25) BOND INTEREST 2/24/2024 1,000,000 285.000% 2/24/2026 - - 14,250.00 14,250.00 2/26/2024 3135G05X7 FANNIE MAE 0.375% 25AUG2025 BOND INTEREST 2/25/2024 1,200,000 37.500% 8/25/2025 - - 2,250.00 2,250.00 2/26/2024 3130ALH98
FEDERAL HOME LOAN BANK 0.25%
26FEB2024 CALLABLE BOND INTEREST 2/26/2024 1,000,000 25.000% 2/26/2024 - - 1,250.00 1,250.00 2/26/2024 3130ALH98
FEDERAL HOME LOAN BANK 0.25%
26FEB2024 CALLABLE REDEMPTION 2/26/2024 1,000,000 25.000% 2/26/2024 100.00 1,000,000.00 - 1,000,000.00 2/27/2024 3130AXB31
FEDERAL HOME LOAN BANK 4.875%
13MAR2026 PURCHASE 2/27/2024 1,000,000 487.500% 3/13/2026 100.31 1,003,060.00 21,395.83 1,024,455.83 Town of Los Gatos
Investment Transaction Detail
February 29, 2024
6
ITEM NO. 6.
Security Description Maturity Date Par/Shares S&P Rating Moody Rating Insight ESG Rating Environment Social Governance IBM CORP 3.0% 15MAY2024 5/15/2024 $ 1,000,000 A- A3 2 1 2 3 CATERPILLAR FIN SERVICES 2.85% 17MAY24 5/17/2024 $ 1,000,000 A A2 4 4 3 4 AMERICAN HONDA FINANCE 2.4% 27JUN2024 6/27/2024 $ 1,000,000 A- A3 3 2 3 3 HONEYWELL INTERNATIONAL 2.3% 15AUG2024 (CALLABLE 15JUL24) 8/15/2024 $ 1,000,000 A A2 4 3 4 3 PEPSICO INC 2.85% 24FEB2026 (CALLABLE 24NOV25) 2/24/2026 $ 1,000,000 A+ A1 2 2 2 2 HOME DEPOT INC. 3% 01APR2026 (CALLABLE 01JAN2026) 4/1/2026 $ 1,000,000 A A2 2 2 3 3 JPMORGAN CHASE & CO 3.2 15JUN2026 (CALLABLE 15MAR26) 6/15/2026 $ 500,000 A- A1 3 1 3 4 APPLE INC. 2.9% 12SEP2027 (CALLABLE 12JUN27) 9/12/2027 $ 1,300,000 AA+ Aaa 5 1 4 5 TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 $ 1,600,000 A+ A1 3 2 3 5 AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 $ 600,000 A- A3 3 2 3 3 PNC BANK NA 3.25% 22JAN2028 (CALLABLE 01 FEB28) 1/22/2028 $ 1,000,000 A A2 3 2 3 3 COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28) 3/1/2028 $ 500,000 AA- Aa3 3 2 3 3 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 7/222028 $ 1,000,000 A A3 4 3 4 4 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL28) 7/25/2028 $ 1,400,000 A- A1 3 1 3 4 Total/Average $ 13,900,000 3.1 2.0 3.0 3.4
*ESG ratings are from 1 to 5, with 1 as the highest rating and 5 as the lowest. All ratings are weighted by industry rankings, based on the importance of the category within the individual industry.
Town of Los Gatos
Insight ESG Ratings as of February 29, 2024
7
ITEM NO. 6.
Fund Schedule
Fund
Number Fund Description
Current
Revenue
Current
Expenditure
Transfer
In Transfer Out
GENERAL FUND
Non-Spendable:
Loans Receivable 159,000 - - - - - 159,000
Restricted Fund Balances:
Pension 1,400,163 - - - - - 1,400,163
Land Held for Resale 44,338 - - - - - 44,338
Committed Fund Balances:
Budget Stabilization 6,129,774 - - - - - 6,129,774
Catastrophic 6,129,775 - - - - - 6,129,775
Pension/OPEB 300,000 - - - - - 300,000
Measure G District Sales Tax 590,581 - - - - - 590,581
Assigned Fund Balances:
Open Space 410,000 - - - - - 410,000
Sustainability 140,553 - - - - - 140,553
Capital/Special Projects 10,359,577 - - - - - 10,359,577 Carryover Encumbrances 37,698 - - - - - 37,698
Compensated Absences 1,580,623 - - - - - 1,580,623
ERAF Risk Reserve 689,608 - - - - - 689,608
Council Priorities - Economic Recovery 1,556,614 - - - - - 1,556,614 Unassigned Fund Balances:
111 Other Unassigned Fund Balance Reserve (Pre YE distribution) - (865,635) 5,193,178 (5,906,456) - - (1,578,913) General Fund Total 29,528,304 (865,635) 5,193,178 (5,906,456) - - 27,949,391 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries.
Feb 2024
Prior Year
Carryforward
7/1/2023
Increase/
(Decrease)
July - Jan
Estimated Fund
Balance
2/29/2024*
8
ITEM NO. 6.
Fund Schedule
Fund
Number Fund Description
Current
Revenue
Current
Expenditure Transfer In Transfer Out
SPECIAL REVENUE
211/212 CDBG 166,653 - - - - - 166,653
222 Urban Runoff (NPDES) 629,843 38,366 29,996 (17,768) - - 680,437 231-236 Landscape & Lighting Districts 176,964 2,561 260 (257) - - 179,528 251 Los Gatos Theatre 74,991 33,584 9,830 (5,807) - - 112,598 711-716 Library Trusts 530,173 72,479 - (1,874) - - 600,778 Special Revenue Total 1,578,624 146,990 40,086 (25,706) - - 1,739,994
CAPITAL PROJECTS
411 GFAR - General Fund Appropriated Reserve 21,725,837 (1,097,732) 83,091 (424,506) - - 20,286,690 412 Community Center Development - 866,281 - - - - 866,281 421 Grant Funded Projects (406,890) 98,414 - (62,638) - - (371,114) 461-463 Storm Basin Projects 3,218,331 79,996 84,660 - - - 3,382,987 471 Traffic Mitigation Projects 431,079 - - - - - 431,079 472 Utility Undergrounding Projects 3,438,996 12,965 - - - - 3,451,961 481 Gas Tax Projects 1,671,245 (645,652) 153,906 - - - 1,179,499 Capital Projects Total 30,078,598 (685,728) 321,657 (487,144) - - 29,227,383
INTERNAL SERVICE FUNDS
611 Town General Liability 212,022 3,189 - - - - 215,211 612 Workers Compensation 514,813 (441,195) 37,099 (7,238) - - 103,479 621 Information Technology 2,474,618 (176,745) 20,383 (4,334) - - 2,313,922 631 Vehicle & Equipment Replacement 2,413,719 502,162 - (35,843) - - 2,880,038 633 Facility Maintenance 927,700 132,136 5,933 (84,028) - - 981,741 Internal Service Funds Total 6,542,872 19,547 63,415 (131,443) - - 6,494,391 Trust/Agency
942 RDA Successor Agency (6,187,789) (1,665,699) 1,894,550 (1,894,667) - - (7,853,605) Trust/Agency Fund Total (6,187,789) (1,665,699) 1,894,550 (1,894,667) - - (7,853,605) Total Town 61,540,609 7,512,886 (8,445,416) - - 57,557,554 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries.
Deposit Accounts of Interest:
111-23541 General Plan Update deposit account balance $682,423.43 111-23521 BMP Housing deposit account balance $4,021,280.60 Prior Year
Carryforward
7/1/2023
Increase/
(Decrease)
July - Jan
Feb 2024
Estimated Fund
Balance
2/29/2024*
9
ITEM NO. 6.
PREPARED BY: Meredith Johnston
Administrative Technician
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DATE: April 11, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution Describing Improvements and Directing the Preparation of the Town Engineer’s Report for Fiscal Year 2024/25 for Landscape and Lighting Assessment Districts No. 1 and 2
RECOMMENDATION:
Adopt a Resolution (Attachment 1) describing improvements and directing the preparation of the Town Engineer’s report for Fiscal Year 2024/25 for Landscape and Lighting Assessment Districts No. 1 and 2.
BACKGROUND:
The California Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22500- 22679) allows local government agencies to form assessment districts for the purpose of financing the costs and expenses for landscaping and lighting public areas.
In the early 1990’s, the Town established two Landscape and Lighting Districts (Districts) comprised of six zones, five of which are in District No. 1 and one in District No. 2. Diagrams of the six zones are included in this report (Attachments 2.1-2.6). Property owners in each District pay an annual assessment on their property tax bill for the maintenance of common area landscaping or lighting.
The majority of the landscape and lighting services within the Districts are provided by a contractor retained and managed directly by the Town on behalf of the property owners, with some maintenance services also provided by Town staff.
ITEM NO. 7.
PAGE 2 OF 3
SUBJECT: Adopt a Resolution Describing Improvements and Directing Preparation of the Town Engineer’s Report for Fiscal Year 2024/25 for Landscape and Lighting Assessment Districts No. 1 and 2
DATE: April 1, 2024
BACKGROUND (continued):
Each year, the Town Council levies the assessments and reconfirms the Districts by a series of Resolutions and a Public Hearing. The process, which is set by the Landscaping and Lighting Act of 1972 (Streets and Highways Code Section 22500-22679), includes the following steps outlined below with the proposed dates when the steps are planned.
1. Council considers the adoption of a Resolution entitled Describing Improvements and Directing the Preparation of the Engineer’s Report for FY 2024/25 – April 16, 2024.
2. Council considers the adoption of Resolutions Approving the 2024/25 Engineer’s Report, stating the Intention to Levy and Collect Assessments, and Setting a Public Hearing to Consider the Proposed Assessments – May 7, 2024.
3. Council conducts the public hearing and then considers the adoption of a Resolution Confirming the Assessment Diagrams and Levying and Authorizing the Collection of Assessments for FY 2024/25 – June 18, 2024.
Provisions of SB 919 (the Proposition 218 Omnibus Implementation Act) adopted by the California State Legislature in 1997 (Chapter 38, Stats. 1997) are implemented during the renewal process. Proposition 218 becomes applicable only when increases in the current assessment rates are contemplated, due primarily to rising maintenance costs and increases in the costs of water and power. If that were to take place, the above noted process would be modified by introducing a mail-in balloting procedure for each zone that begins after the items in Step 2 are approved by Council and concludes at the close of the public hearing.
At the conclusion of Step 3, the staff transmits the assessment amounts to the County Assessor which appears as a separate item on the property tax bill for each parcel.
Upon fulfillment of these requirements, the Town must submit the Resolution confirming the assessments to the County of Santa Clara for inclusion on the Fiscal Year 2024/25 property tax roll.
DISCUSSION:
The first step in the statutorily prescribed process contained in the California Streets and Highways Code requires that the Town adopt a Resolution describing any proposed new improvements or any substantial changes in the existing improvements and ordering the preparation and filing of an Engineer’s Report. The subject Assessment Districts are largely responsible for covering expenses related to public landscaping within the defined boundaries of the separate Assessment Districts.
ITEM NO. 7.
PAGE 3 OF 3
SUBJECT: Adopt a Resolution Describing Improvements and Directing Preparation of the Town Engineer’s Report for Fiscal Year 2024/25 for Landscape and Lighting Assessment Districts No. 1 and 2
DATE: April 1, 2024
DISCUSSION (continued):
No new improvements or substantial changes in existing are proposed for any Assessment District for Fiscal Year 2024/25.
Streets & Highways Code Section 22622 states, “The legislative body shall adopt a resolution which shall generally describe any proposed new improvements or any substantial changes in existing improvements and order the engineer to prepare and to file a report in accordance with Article 4 (commencing with Section 22565).” The attached Resolution describes the improvements (services) to be provided to the districts and directs the preparation of the Engineer’s Report.
CONCLUSION:
Staff recommends that Town Council adopt a Resolution describing improvements and directing the preparation of the Town Engineer’s report for Fiscal Year 2024/25 for Landscape and Lighting Assessment Districts No. 1 and 2 in compliance with California Streets and Highway Code, Section 22622.
FISCAL IMPACT:
The Town’s Landscape and Lighting Assessment Districts do not impact the Town’s General Fund. The impact of any proposed changes to District budgets on the assessments of individual property owners will be provided in the Engineer’s Report.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under the California Environmental Quality Act, and no further action is required.
Attachments:
1. Resolution Describing Improvements and Directing Preparation of Engineer’s Report for Fiscal Year 2024/25 with Exhibit A
2. Diagrams of Benefit Zones for Landscape and Lighting Districts No. 1 and 2 (labeled as Attachments 2.1 through 2.6)
ITEM NO. 7.
1 of 3
Draft Resolution DATE
ATTACHMENT 1
DRAFT RESOLUTION
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
DESCRIBING IMPROVEMENTS AND DIRECTING PREPARATION OF ENGINEER'S REPORT FOR FISCAL YEAR 2024/25 TOWN OF LOS GATOS LANDSCAPE AND LIGHTING ASSESSMENT DISTRICTS NO. 1 AND 2
WHEREAS, the Town Council did, pursuant to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the Streets and Highways Code of the State of California, conduct proceedings for the formation of the Town of Los Gatos Landscaping and Lighting Assessment Districts No. 1 and 2; and
WHEREAS, the public interest, convenience and necessity require, and it is the intention of said Council to undertake proceedings for the levy and collection of assessments upon the several lots or parcels of land in said Districts, for the construction or installation of improvements, including the maintenance or servicing, or both, thereof, for the fiscal year 2024/25; and
WHEREAS, the improvements to be constructed or installed, including the maintenance or servicing, or both, thereof, are more particularly described in (Exhibit A) hereto attached and by reference incorporated herein; and
WHEREAS, the costs and expenses of said improvements, including the maintenance or servicing, or both, thereof, are to be made chargeable upon said Districts, the exterior boundaries of which Districts are the composite and consolidated area as more particularly shown on a map thereof on file in the Clerk Department of the Town of Los Gatos to which reference is hereby made for further particulars. Said map indicates, by a boundary line, the extent of the territory included in said Districts and of any zone thereof and shall govern for all details as to the extent of the assessment districts; and NOW, THEREFORE, BE IT RESOLVED: The Engineer of said Town is hereby directed to prepare and file with said Town Clerk a report, in writing, referring to the assessment districts by their distinctive designations, specifying the fiscal year to which the report applies, and, with respect to that year, presenting the following:
ITEM NO. 7.
2 of 3
Draft Resolution DATE
ATTACHMENT 1
a. Plans and specification of the existing improvements and for proposed new improvements, if any, to be made within the assessment districts or within any zones thereof;
b. An estimate of the costs of said proposed new improvements, if any, to be made, the costs of maintenance or servicing, or both, thereof, and of any existing improvements, together with the incidental expenses in connection therewith; c. A diagram showing the exterior boundaries of the assessment districts and of any zones within said districts and the lines and dimensions of each lot or parcel of land within the districts as such lot or parcel of land is shown on the County Assessor's map for the fiscal year to which the report applies, each of which lots or parcels of land shall be identified by a distinctive number or letter on said diagram; and
d. A proposed assessment of the total amount of the estimated costs and expenses of the proposed new improvements, including the maintenance or servicing, or both, thereof, and of any existing improvements upon the several lots or parcels of land in said districts in proportion to the estimated particular and distinct benefits to be received by each of such lots or parcels of land, respectively, from said improvements, including the maintenance or servicing, or both, thereof, and of the expenses incidental thereto.
NOW, THEREFORE, BE IT FURTHER RESOLVED: The Office of the Engineer of said Town is hereby designated as the office to answer inquiries regarding any protest proceedings to be had herein and may be contacted during regular office hours at 41 Miles Avenue, Los Gatos, California 95030 or by calling (408) 399-5770.
ITEM NO. 7.
3 of 3
Draft Resolution DATE
ATTACHMENT 1
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the ____ day of _____, 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: __________________
ITEM NO. 7.
Draft Resolution EXHIBIT A
EXHIBIT A
DESCRIPTION OF IMPROVEMENTS
TOWN OF LOS GATOS
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1
1. General Description of Improvements:
The design, construction or installation, including the maintenance or servicing, or both, thereof, of landscaping, including trees, shrubs, grass or other ornamental vegetation, statuary, fountains or other ornamental structures and facilities, and public lighting facilities for the lighting of any public places, ornamental standards, luminaries, poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, braces, transformers, insulators, contacts, switches, capacitors, meters, communication circuits, appliances, attachments and appurtenances, including the cost of repair, removal or replacement of all or any part thereof; providing for the life, growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; electric current or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; and the operation of any fountains or the maintenance of any other improvements.
2. Specific Descriptions of Improvements:
Blackwell Drive Benefit Zone - Maintenance of the landscaping in the median island on Blackwell Drive constructed as a part of the public improvements required of Tract No. 8306, and maintenance of the street lights installed along Blackwell Drive and National Avenue installed as a part of the public improvements required of Tract No. 8306.
Hillbrook Benefit Zone - The maintenance of trees, landscaping, irrigation systems, hardscape and fences as currently exist on APN 523-11-028, located at the southeast corner of Blossom Hill Road and Hillbrook Drive.
Kennedy Meadows Benefit Zone - The maintenance of trees, landscaping, irrigation systems, trail and street lights within the open space areas (Parcels A and B) and along Kennedy Court and Forrester Court, installed as a part of the public improvements required of Tract No. 8612, and the implementation of mitigation and enhancement measures within the riparian and wetlands areas of said Tract described in the report prepared by H.T. Harvey Associates, dated November 11, 1994.
Santa Rosa Heights Benefit Zone - The maintenance of trees, landscaping, trails and retaining walls constructed as a part of the public improvements required of Tract No. 8400.
Vasona Heights Benefit Zone - The maintenance of trees, landscaping, irrigation systems, trails, emergency access roads and retaining walls within the open space areas required as a part of the public improvements required of Tract No. 8280.
ITEM NO. 7.
Draft Resolution EXHIBIT A
EXHIBIT A
DESCRIPTION OF IMPROVEMENTS
TOWN OF LOS GATOS
LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 2
1. General Description of Improvements:
The design, construction or installation, including the maintenance or servicing, or both, thereof, of landscaping, including trees, shrubs, grass or other ornamental vegetation, statuary, fountains or other ornamental structures and facilities, and public lighting facilities for the lighting of any public places, ornamental standards, luminaries, poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, braces, transformers, insulators, contacts, switches, capacitors, meters, communication circuits, appliances, attachments and appurtenances, including the cost of repair, removal or replacement of all or any part thereof; providing for the life, growth, health and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing and treating for disease or injury; the removal of trimmings, rubbish, debris and other solid waste; electric current or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements; and the operation of any fountains or the maintenance of any other improvements.
2. Specific Description of Improvements:
Gemini Court Benefit Zone - The maintenance of trees, landscaping, irrigation systems, lighting, sound walls, and fences installed as a part of the public improvements required of Tract No. 8439.
ITEM NO. 7.
3 1 2
4 5
BLACKWELL DR NATIONAL AV
Blackwell Drive Benefit Zone
Landscaping & Lighting Assessment District No. 1
Assessment Diagram
PART "D"
Not To Scale
Area Maintained by
Vasona Heights
Benefit Zone
ITEM NO. 7.
HILLBROOK DR
BLOSSOM HILL RD
Hillbrook Benefit Zone
Landscaping & Lighting Assessment District No. 1
Existing Improvements to be Maintained
PART "A"
Not To Scale
ITEM NO. 7.
FAIRMEAD LN
HILLBROOK DR
BLOSSOM HILL RD
EASTRIDGE DR
HILLBROOK DR 1
2 3
4 5
6 7
8 9
10 12 11
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
29 30
31 32 33 34
Hillbrook Benefit Zone
Landscaping & Lighting Assessment District No. 1
Assessment Diagram
PART "D"
Not To Scale
Area Maintained by
Hillbrook Benefit
Zone
ITEM NO. 7.
1 2
3 4
6 7
8 9
10 15 14
13 12
11 5
B
A
KENNEDY CT
FORRESTER
CT
FORRESTER RD
LEOTAR CT
FORRESTER RD
KENNEDY RD
TERESITA
KENNEDY RD
S KENNEDY RD
Kennedy Meadows Benefit Zone
Landscaping & Lighting Assessment District No. 1
Assessment Diagram
PART "D"
Not To Scale
Area Maintained by
Kennedy Meadows
Benefit Zone
ITEM NO. 7.
1 2
3 4 5
6 7
8 9
10 11
12 13 14
15 Town Limits
SIERRA
AZULE
DR
DR
ROSA
SANTA
KENNEDY RD
ARROYO
DEL RANCHO
SHANNON RD
SHANNON RD
Santa Rosa Heights Benefit Zone
Landscaping & Lighting Assessment District No. 1
Assessment Diagram
PART "D"
Not To Scale
Area Maintained by
Santa Rosa Heights
Benefit Zone
ATTACHMENT 2.4
ITEM NO. 7.
A
1 2
9 10
11 12 13
14 15
16 8 17
18 19
7 3
27 23
24 25
26 22
21 B
C
28 29
30 31
4 5
6 20
3233
BLOSSOM HILL RD
ROBERTS RD
OHLONE CT
HWY 17
Vasona Heights Benefit Zone
Landscaping & Lighting Assessment District No. 1
Assessment Diagram
PART "D"
Not To Scale
Area Maintained by
Vasona Heights
Benefit Zone
ITEM NO. 7.
6 7 8
10 11
12 13
16 1920 18 17
1 2
3 4
5 BLOSSOM HILL RD
GEMINI CT BEGONIA DR HARWOOD RD
9 14
15 Gemini Court Benefit Zone
Landscaping & Lighting Assessment District No. 2
Assessment Diagram
PART "D"
Not To Scale
ATTACHMENT 2.6
ITEM NO. 7.
PREPARED BY: Stefanie Hockemeyer
Sr. Administrative Analyst
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DATE: April 11, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize Revenue and Expenditure Budget Adjustments in the Amount of $15,615.98 to Recognize Excess Insurance Reimbursement for Damage to Howes Play Lot Structure
RECOMMENDATION:
Authorize revenue and expenditure budget adjustments in the amount of $15,615.98 to recognize excess insurance reimbursement for damage to Howes Play Lot structure.
BACKGROUND:
Howes Play Lot is a neighborhood park situated between Thomas Drive and Howes Drive. The park is highly used by neighborhood families and school children as a stopping point between school and home travels. The park is equipped with a lighted pathway, large trees, benches, and play equipment. The play equipment consists of a tot swing, a tot slide, and youth playscape (intended for ages 5 to 12).
As a result of March 2023 storms, tree damage occurred throughout the Town including two large Stone Pine trees that fell on the play structure at Howes Play Lot, destroying 70 percent of the equipment. Following the storms, Town contractors removed the fallen trees. Inspection revealed that the tot slide and swings were not damaged, but the youth play lot was a complete loss and could not be salvaged.
On June 9, 2023, staff received a quote from Ross Recreation Equipment, Inc. for the replacement of the youth lot equipment, in an amount of $121,678. Staff then submitted a claim to the Town’s insurance carrier for reimbursement of costs related to the storm damage repairs at the Play lot.
ITEM NO. 8.
PAGE 2 OF 2
SUBJECT: Authorize Revenue and Expenditure Budget Adjustments to Recognize Excess Insurance Reimbursement for Damage to Howes Play Lot Structure DATE: April 11, 2024
BACKGROUND (continued):
At the August 15, 2023 Town Council meeting, staff received authorization to execute a Purchase and Service agreement with Ross Recreation, Inc. to replace the play structure equipment. The value of the purchase order was $121,678 and the Town Council approval included an expenditure budget adjustment in the amount of $121,678 to use the funds. The insurance claim was still pending at that time, but staff requested to move forward because there was an estimated 27-week lead time for delivery of the playground equipment.
The play structure was successfully installed at Howes Play Lot.
DISCUSSION:
The insurance claim that staff submitted was approved and the reimbursement amount received was $137,293.98, which is $15,615.98 more than the anticipated amount that staff had reported in the August 15, 2023 staff report.
Staff is requesting that Council authorize an additional revenue and expenditure budget adjustment to recognize the excess insurance reimbursement of $15,615.98, which will allow staff to utilize those funds before the end of the fiscal year to pay for additional repairs at Howes Play Lot.
CONCLUSION:
Authorize revenue and expenditure budget adjustments in the amount of $15,615.98 to recognize excess insurance reimbursement for damage to Howes Play Lot structure.
FISCAL IMPACT:
Approval of the revenue and expenditure budget adjustments in the amount of $15,615.98 will be in the Operating Budget for program 5301 (Parks) for additional repairs at Howes Play Lot.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ITEM NO. 8.
PREPARED BY: Gary Heap
Town Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DATE: April 11, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve the Following Action for the Shannon Road Pedestrian and Bikeway Improvement Project (CIP No. 813-0218):
a. Authorize the Town Manager to execute Program Supplement No. F0104 to the Administering Agency-State Agreement for Federal-Aid Project No. 04-5067F15 in the Amount of $940,100 from the State of California Department of Transportation (Caltrans)
RECOMMENDATION:
Approve the following action for the Shannon Road Pedestrian and Bikeway Improvement project (CIP No. 813-0218):
a. Authorize the Town Manager to execute Program Supplement No. F0104 to Administering Agency-State Agreement for Federal-Aid Project No. 04-5067F15 (Attachment 2) in the Amount of $940,100 from the State of California Department of Transportation (Caltrans) BACKGROUND:
The Shannon Road Pedestrian and Bikeway Improvements Project would provide pedestrian and bicycle safety improvements on Shannon Road between Los Gatos Boulevard and Cherry Blossom Lane. This segment of Shannon Road is a two-lane neighborhood collector street with high volumes of bicycle and pedestrian traffic when schools are in session.
The street is a popular route for students attending Blossom Hill Elementary, Louise Van Meter Elementary, and Raymond J. Fisher Middle Schools. There are intermittent sections of sidewalk on both sides of the roadway. Currently, on-street parking is not allowed on Shannon Road between 7 a.m. and 6 p.m., except on Saturdays, Sundays, and holidays.
ITEM NO. 9.
PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to execute Program Supplement and Revenue and Expenditure Budget Adjustments for the Shannon Road Pedestrian and Bikeways Improvement Project
DATE: April 11, 2024
BACKGROUND (continued):
As the Congestion Management Agency (CMA) for Santa Clara County, Santa Clara Valley Transportation Authority (VTA) developed a County Safe Routes to School program called Vehicle Emissions Reductions Based at Schools (VERBS). This program is funded exclusively by federal Congestion Mitigation and Air Quality (CMAQ) funds, which focus on vehicle emission reductions. As a result, VERBS projects need to target air quality improvements as well as the health and safety of school-aged children.
On July 25, 2018, Town staff submitted a grant application to the VTA VERBS Grant Program for the Shannon Road Complete Streets Project (AKA Shannon Road Pedestrian and Bikeways Improvement Project). The Town was awarded $940,100 of federal funds in the VTA’s Fiscal Year (FY) 2018-2022 VERBS Grant Program for the Shannon Road Complete Streets project.
With that award the Town entered into the Master Agreement with Caltrans for project funding (Attachment 1). With the design of the project complete, the Town has received the project’s “Authorization to Proceed” (often referred to as the E-76) from Caltrans which formally obligates the funds. The Program Supplement Agreement (Attachment 2) authorizes the Town’s use of these funds.
DISCUSSION:
The Shannon Road Pedestrian and Bikeway Improvement Project design is complete, and staff is scheduled to advertise the project for bid on April 19, 2024.
On February 15, 2024, Caltrans provided the Town with the Program Supplement Agreement No. F014 for Project CML-5067(024), requesting it be executed for the project. This action would obligate the $940,100 in grant funding and make it available for project construction.
CONCLUSION:
Staff recommends the Town Council authorize the Town Manager to execute the Program Supplement Agreement.
FISCAL IMPACT:
The funding plan for this project includes several sources including GFAR, multiple grants, and funding from Storm Basin #1, Traffic Mitigation Funds, and Utility Undergrounding.
ITEM NO. 9.
PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to execute Program Supplement and Revenue and Expenditure Budget Adjustments for the Shannon Road Pedestrian and Bikeways Improvement Project
DATE: April 11, 2024
FISCAL IMPACT (continued):
ENVIRONMENTAL ASSESSMENT:
This project is Categorically Exempt per Section 15301, PRC 21084; 14 CCR 15300.
Attachments:
1. Master Agreement Administering Agency-State Agreement for Federal-Aid Projects.
2. Program Supplement Agreement No. F014 to Administering Agency-State Agreement for Federal-Aid Projects No. 04-5067F15.
Budget Costs
GFAR $ 740,296
Grant Funding - Congestion Management Air District
(CMAQ)/One Bay Area Grant Program 2 (OBAG2) $ 940,100
Grant Funding - Transportation for Clean Air (TFCA) $ 174,250 Storm Basin #1 $ 200,000
Traffic Mitigation Funds $ 133,380
Utility Undergrounding $ 119,204
Total Budget $ 2,307,230
Temporary Staff Charges $ 42,985
Consultant & Engineering Services $ 326,336
Total Expenditures $ 369,321
Available Balance $ 1,937,909
Shannon Road Pedestrian and Bikeway Improvements
CIP No. 813-0218
ITEM NO. 9.
MASTER AGREEMENT
ADMINISTERING AGENCY -STATE AGREEMENT FOR
FEDERAL -AID PROJECTS
04 City of Los Gatos
District Administering Agency
Agreement No. 04- 5067F15
AGR L-- L--_
IHH
This AGREEMENT, is entered into effective this 2,0 day of 201, by and between City of Los Gatos, hereinafter referred to as " ADMINISTERING A NCY," and the State of California, acting by and through its Department of Transportation ( Caltrans), hereinafter referred to as "STATE ", and together referred to as " PARTIES" or individually as a " PARTY." RECITALS:
1. WHEREAS, the Congress of the United States has enacted the Intermodal Surface Transportation Efficiency Act ( ISTEA) of 1991 and subsequent Transportation Authorization Bills to fund transportation programs; and
2. WHEREAS, the Legislature of the State of California has enacted legislation by which certain federal -aid funds may be made available for use on local transportation related projects of public entities qualified to act as recipients of these federal -aid funds in accordance with the intent of federal law; and
3. WHEREAS, before federal funds will be made available for a specific program project, ADMINISTERING AGENCY and STATE are required to enter into an agreement to establish terms and conditions applicable to the ADMINISTERING AGENCY when receiving federal funds for a designated PROJECT facility and to the subsequent operation and maintenance of that completed facility.
NOW, THEREFORE, the PARTIES agree as follows:
ATTACHMENT 1
ITEM NO. 9.
ARTICLE I - PROJECT ADMINISTRATION
1. This AGREEMENT shall have no force or effect with respect to any program project unless and until a project- specific " Authorization /Agreement Summary ", herein referred to as " E -76" document, is approved by STATE and the Federal Highway Administration ( FHWA).
2. The term " PROJECT ", as used herein, means that authorized transportation related project and related activities financed in part with federal -aid funds as more fully- described in an Authorization/ Agreement Summary" or " Amendment/ Modification Summary", herein referred to as " E -76" or " E -76 ( AMOD)" document authorized by STATE and the Federal Highway Administration (FHWA).
3. The E- 76/ E -76 (AMOD) shall designate the party responsible for implementing PROJECT, type of work and location of PROJECT.
4. The PROGRAM SUPPLEMENT sets out special covenants as a condition for the ADMINISTERING AGENCY to receive federal -aid funds from /through STATE for designated PROJECT. The PROGRAM SUPPLEMENT shall also show these federal funds that have been initially encumbered for PROJECT along with the matching funds to be provided by ADMINISTERING AGENCY and /or others. Execution of PROGRAM SUPPLEMENT by the PARTIES shall cause ADMINISTERING AGENCY to adopt all of the terms of this AGREEMENT as though fully set forth therein in the PROGRAM SUPPLEMENT. Unless otherwise expressly delegated in a resolution by the governing body of ADMINISTERING AGENCY, and with written concurrence by STATE, the PROGRAM SUPPLEMENT shall be approved and managed by the governing body of ADMINISTERING AGENCY.
5. ADMINISTERING AGENCY agrees to execute and return each project- specific PROGRAM SUPPLEMENT within ninety ( 90) days of receipt. The PARTIES agree that STATE may suspend future authorizations /obligations and invoice payments for any on -going or future federal -aid project performed by ADMINISTERING AGENCY if any project- specific PROGRAM SUPPLEMENT is not returned within that ninety ( 90) day period unless otherwise agreed by STATE in writing.
6. ADMINISTERING AGENCY further agrees, as a condition to the release and payment of federal funds encumbered for the PROJECT described in each PROGRAM SUPPLEMENT, to comply with the terms and conditions of this AGREEMENT and all of the agreed -upon Special Covenants or Remarks incorporated within the PROGRAM SUPPLEMENT, and Cooperative / Contribution Agreement where appropriate, defining and identifying the nature of the specific PROJECT.
7. Federal, state and matching funds will not participate in PROJECT work performed in advance of the approval of the E -76 or E -76 ( AMOD), unless otherwise stated in the executed project - specific PROGRAM SUPPLEMENT. ADMINISTERING AGENCY agrees that it will only proceed with the work authorized for that specific phase( s) on the project- specific E -76 or E -76 ( AMOD).
ADMINISTERING AGENCY further agrees to not proceed with future phases of PROJECT prior to receiving an E -76 ( AMOD) from STATE for that phase( s) unless no further federal funds are needed or for those future phase( s).
ITEM NO. 9.
8. That PROJECT or portions thereof, must be included in a federally approved Federal Statewide Transportation Improvement Program ( FSTIP) prior to ADMINISTERING AGENCY submitting the Request for Authorization ".
9. ADMINISTERING AGENCY shall conform to all state statutes, regulations and procedures including those set forth in the Local Assistance Procedures Manual and the Local Assistance Program Guidelines, hereafter collectively referred to as " LOCAL ASSISTANCE PROCEDURES ") relating to the federal -aid program, all Title 23 Code of Federal Regulation ( CFR) and 2 CFR part 200 federal requirements, and all applicable federal laws, regulations, and policy and procedural or instructional memoranda, unless otherwise specifically waived as designated in the executed project- specific PROGRAM SUPPLEMENT.
10. If PROJECT is not on STATE -owned right of way, PROJECT shall be constructed in accordance with LOCAL ASSISTANCE PROCEDURES that describes minimum statewide design standards for local agency streets and roads. LOCAL ASSISTANCE PROCEDURES for projects off the National Highway System ( NHS) allow STATE to accept either the STATE' s minimum statewide design standards or the approved geometric design standards of ADMINISTERING AGENCY. Additionally, for projects off the NHS, STATE will accept ADMINISTERING AGENCY - approved standard specifications, standard plans, materials sampling and testing quality assurance programs that meet the conditions described in the then current LOCAL ASSISTANCE PROCEDURES.
11. If PROJECT involves work within or partially within STATE -owned right -of -way, that PROJECT shall also be subject to compliance with the policies, procedures and standards of the STATE Project Development Procedures Manual and Highway Design Manual and, where appropriate, an executed Cooperative Agreement between STATE and ADMINISTERING AGENCY that outlines the PROJECT responsibilities and respective obligations of the PARTIES.
ADMINISTERING AGENCY and its contractors shall each obtain an encroachment permit through STATE prior to commencing any work within STATE rights of way or work which affects STATE facilities.
12. When PROJECT is not on the State Highway System but includes work to be performed by a railroad, the contract for such work shall be prepared by ADMINISTERING AGENCY or by STATE, as the PARTIES may hereafter agree. In either event, ADMINISTERING AGENCY shall enter into an agreement with the railroad providing for future maintenance of protective devices or other facilities installed under the contract.
13. If PROJECT is using STATE funds, the Department of General Services, Division of the State Architect, or its designee, shall review the contract PS &E for the construction of buildings, structures, sidewalks, curbs and related facilities for accessibility and usability. ADMINISTERING AGENCY shall not award a PROJECT construction contract for these types of improvements until the State Architect has issued written approval stating that the PROJECT plans and specifications comply with the provisions of sections 4450 and 4454 of the California Government Code, if applicable. Further requirements and guidance are provided in Title 24 of the California Code of Regulations.
14. ADMINISTERING AGENCY will advertise, award and administer PROJECT in accordance with the current LOCAL ASSISTANCE PROCEDURES unless otherwise stated in the executed project- specific PROGRAM SUPPLEMENT.
ITEM NO. 9.
15. ADMINISTERING AGENCY shall provide or arrange for adequate supervision and inspection of each PROJECT. While consultants may perform supervision and inspection work for PROJECT with a fully qualified and licensed engineer, ADMINISTERING AGENCY shall provide a full -time employee to be in responsible charge of each PROJECT who is not a consultant.
16. ADMINISTERING AGENCY shall submit PROJECT - specific contract award documents to STATE' s District Local Assistance Engineer within sixty ( 60) days after contract award. A copy of the award documents shall also be included with the submittal of the first invoice for a construction contract by ADMINISTERING AGENCY. .
17. ADMINISTERING AGENCY shall submit the final report documents that collectively constitute a " Report of Expenditures" within one hundred eighty ( 180) days of PROJECT completion. Failure by ADMINISTERING AGENCY to submit a " Report of Expenditures" within one hundred eighty 180) days of project completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current LOCAL ASSISTANCE PROCEDURES.
18. ADMINISTERING AGENCY shall comply with: ( i) section 504 of the Rehabilitation Act of 1973 which prohibits discrimination on the basis of disability in federally assisted programs; ( ii) the Americans with Disabilities Act ( ADA) of 1990 which prohibits discrimination on the basis of disability irrespective of funding; and ( iii) all applicable regulations and guidelines issued pursuant to both the Rehabilitation Act and the ADA.
19. The Congress of the United States, the Legislature of the State of California and the Governor of the State of California, each within their respective jurisdictions, have prescribed certain nondiscrimination requirements with respect to contract and other work financed with public funds.
ADMINISTERING AGENCY agrees to comply with the requirements of the FAIR EMPLOYMENT PRACTICES ADDENDUM ( Exhibit A attached hereto) and the NONDISCRIMINATION ASSURANCES ( Exhibit B attached hereto). ADMINISTERING AGENCY further agrees that any agreement entered into by ADMINISTERING AGENCY with a third party for performance of PROJECT - related work shall incorporate Exhibits A and B ( with third party' s name replacing ADMINISTERING AGENCY) as essential parts of such agreement to be enforced by that third party as verified by ADMINISTERING AGENCY.
ITEM NO. 9.
ARTICLE II - RIGHTS OF WAY
1. No contract for the construction of a federal -aid PROJECT shall be awarded until all necessary rights of way have been secured. Prior to the advertising for construction of PROJECT, ADMINISTERING AGENCY shall certify and, upon request, shall furnish STATE with evidence that all necessary rights of way are available for construction purposes or will be available by the time of award of the construction contract.
2. ADMINISTERING AGENCY agrees to indemnify and hold STATE harmless from any liability that may result in the event the right of way for a PROJECT, including, but not limited to, being clear as certified or if said right of way is found to contain hazardous materials requiring treatment or removal to remediate in accordance with Federal and State laws. The furnishing of right of way as provided for herein includes, in addition to all real property required for the PROJECT, title free and clear of obstructions and encumbrances affecting PROJECT and the payment, as required by applicable law, of relocation costs and damages to remainder real property not actually taken but injuriously affected by PROJECT. ADMINISTERING AGENCY shall pay, from its own non - matching funds, any costs which arise out of delays to the construction of PROJECT because utility facilities have not been timely removed or relocated, or because rights of way were not available to ADMINISTERING AGENCY for the orderly prosecution of PROJECT work.
3. Subject to STATE approval and such supervision as is required by LOCAL ASSISTANCE PROCEDURES over ADMINISTERING AGENCY's right of way acquisition procedures, ADMINISTERING AGENCY may claim reimbursement from federal funds for expenditures incurred in purchasing only the necessary rights of way needed for the PROJECT after crediting PROJECT with the fair market value of any excess property retained and not disposed of by ADMINISTERING AGENCY.
4. When real property rights are to be acquired by ADMINISTERING AGENCY for a PROJECT, said ADMINISTERING AGENCY must carry out that acquisition in compliance with all applicable State and Federal laws and regulations, in accordance with State procedures as published in State' s current LOCAL ASSISTANCE PROCEDURES and STATE' s Right -of -Way Manual, subject to STATE oversight to ensure that the completed work is acceptable under the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended.
5. Whether or not federal -aid is to be requested for right of way, should ADMINISTERING AGENCY, in acquiring right of way for PROJECT, displace an individual, family, business, farm operation, or non - profit organization, relocation payments and services will be provided as set forth in 49 CFR, Part 24. The public will be adequately informed of the relocation payments and services which will be available, and, to the greatest extent practicable, no person lawfully occupying real property shall be required to move from his /her dwelling or to move his /her business or farm operation without at least ninety ( 90) days written notice from ADMINISTERING AGENCY. ADMINISTERING AGENCY will provide STATE with specific assurances, on each portion of the PROJECT, that no person will be displaced until comparable decent, safe and sanitary replacement housing is available within a reasonable period of time prior to displacement, and that ADMINISTERING AGENCY' s relocation program is realistic and adequate to provide orderly, timely and efficient relocation of PROJECT - displaced persons as provided in 49 CFR, Part 24.
ITEM NO. 9.
6. ADMINISTERING AGENCY shall, along with recording the deed or instrument evidencing title in the name of the ADMINISTERING AGENCY or their assignee, also record an Agreement Declaring Restrictive Covenants ( ADRC) as a separate document incorporating the assurances included within Exhibits A and B and Appendices A, B, C and D of this AGREEMENT, as appropriate.
ITEM NO. 9.
ARTICLE III - MAINTENANCE AND MANAGEMENT
1. ADMINISTERING AGENCY will maintain and operate the property acquired, developed, constructed, rehabilitated, or restored by PROJECT for its intended public use until such time as the parties might amend this AGREEMENT to otherwise provide. With the approval of STATE, ADMINISTERING AGENCY or its successors in interest in the PROJECT property may transfer this obligation and responsibility to maintain and operate PROJECT property for that intended public purpose to another public entity.
2. Upon ADMINISTERING AGENCY's acceptance of the completed federal -aid construction contract or upon contractor being relieved of the responsibility for maintaining and protecting PROJECT, ADMINISTERING AGENCY will be responsible for the maintenance, ownership, liability, and the expense thereof, for PROJECT in a manner satisfactory to the authorized representatives of STATE and FHWA and if PROJECT falls within the jurisdictional limits of another Agency or Agencies, it is the duty of ADMINISTERING AGENCY to facilitate a separate maintenance agreement( s) between itself and the other jurisdictional Agency or Agencies providing for the, operation, maintenance, ownership and liability of PROJECT. Until those agreements are executed, ADMINISTERING AGENCY will be responsible for all PROJECT operations, maintenance, , ownership and liability in a manner satisfactory to the authorized representatives of STATE and FHWA. If, within ninety ( 90) days after receipt of notice from STATE that a PROJECT, or any portion thereof, is not being properly operated and maintained and ADMINISTERING AGENCY has not satisfactorily remedied the conditions complained of, the approval of future federal -aid projects of ADMINISTERING AGENCY will be withheld until the PROJECT shall have been put in a condition of operation and maintenance satisfactory to STATE and FHWA. The provisions of this section shall not apply to a PROJECT that has been vacated through due process of law with STATE' s concurrence.
3. PROJECT and its facilities shall be maintained by an adequate and well- trained staff of engineers and /or such other professionals and technicians as PROJECT reasonably requires.
Said operations and maintenance staff may be employees of ADMINISTERING AGENCY, another unit of government, or a contractor under agreement with ADMINISTERING AGENCY. All maintenance will be performed at regular intervals or as required for efficient operation of the complete PROJECT improvements.
ITEM NO. 9.
ARTICLE IV - FISCAL PROVISIONS
1. All contractual obligations of STATE are subject to the appropriation of resources by the Legislature and the allocation of resources by the California Transportation Commission ( CTC).
2. STATE' S financial commitment of federal funds will occur only upon the execution of this AGREEMENT, the authorization of the project- specific E -76 or E -76 ( AMOD), the execution of each project- specific PROGRAM SUPPLEMENT, and STATE' s approved finance letter.
3. ADMINISTERING AGENCY may submit signed invoices in arrears for reimbursement of participating PROJECT costs on a regular basis once the project- specific PROGRAM SUPPLEMENT has been executed by STATE.
4. ADMINISTERING AGENCY agrees, at a minimum, to submit invoices at least once every six 6) months commencing after the funds are encumbered on either the project- specific PROGRAM SUPPLEMENT or through a project- specific finance letter approved by STATE. STATE reserves the right to suspend future authorizations /obligations, and invoice payments for any on -going or future federal -aid project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six ( 6) month period.
5. Invoices shall be submitted on ADMINISTERING AGENCY letterhead that includes the address of ADMINISTERING AGENCY and shall be formatted in accordance with LOCAL ASSISTANCE PROCEDURES.
6. ADMINISTERING AGENCY must have at least one copy of supporting backup documentation for costs incurred and claimed for reimbursement by ADMINISTERING AGENCY.
ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency' s progress payment to the contractors, copies of;cancelled checks showing amounts made payable to vendors and contractors, and /or a computerized summary of PROJECT costs.
7. Payments to ADMINISTERING AGENCY can only be released by STATE as reimbursement of actual allowable PROJECT costs already incurred and paid for by ADMINISTERING AGENCY.
8. Indirect Cost Allocation Plans /Indirect Cost Rate Proposals ( ICAP /ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to STATE ( Caltrans Audits & Investigations) for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect costs incurred within each fiscal year being claimed for State and federal reimbursement. ICAPs /ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the Local Assistance Procedural Manual, and the ICAP /ICRP approval procedures established by STATE.
9. Once PROJECT has been awarded, STATE reserves the right to de- obligate any excess federal funds from the construction phase of PROJECT if the contract award amount is less than the obligated amount, as shown on the PROJECT E -76 or E -76 ( AMOD).
10. STATE will withhold the greater of either two ( 2) percent of the total of all federal funds encumbered for each PROGRAM SUPPLEMENT or $ 40, 000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.
ITEM NO. 9.
11. The estimated total cost of PROJECT, the amount of federal funds obligated, and the required matching funds may be adjusted by mutual consent of the PARTIES hereto with a finance letter, a detailed estimate, if required, and approved E -76 (AMOD). Federal -aid funding may be increased to cover PROJECT cost increases only if such funds are available and FHWA concurs with that increase.
12. When additional federal -aid funds are not available, ADMINISTERING AGENCY agrees that the payment of federal funds will be limited to the amounts authorized on the PROJECT specific E -76 / E -76 ( AMOD) and agrees that any increases in PROJECT costs must be defrayed with ADMINISTERING AGENCY's own funds.
13. ADMINISTERING AGENCY shall use its own non - federal funds to finance the local share of eligible costs and all expenditures or contract items ruled ineligible for financing with federal funds.
STATE shall make the determination of ADMINISTERING AGENCY' s cost eligibility for federal fund financing of PROJECT costs.
14. ADMINISTERING AGENCY will reimburse STATE for STATE' s share of costs for work performed by STATE at the request of ADMINISTERING AGENCY. STATE' s costs shall include overhead assessments in accordance with. section 8755. 1 of the State Administrative Manual.
15. Federal and state funds allocated from the State Transportation Improvement Program ( STIP) are subject to the timely use of funds provisions enacted by Senate Bill 45, approved in 1997, and subsequent STIP Guidelines and State procedures approved by the CTC and STATE.
16. Federal funds encumbered for PROJECT, are available for liquidation for a period of six ( 6) years from the beginning of the State fiscal year the funds were appropriated in the State Budget.
State funds encumbered for PROJECT are available for liquidation only for six ( 6) years from the beginning of the State fiscal year the funds were appropriated in the State Budget. Federal or state funds not liquidated within these periods will be reverted unless a Cooperative Work Agreement ( CWA) is submitted by ADMINISTERING AGENCY and approved by the California Department of Finance ( per Government Code section 16304). The exact date of fund reversion will be reflected in the STATE signed finance letter for PROJECT.
17. Payments to ADMINISTERING AGENCY for PROJECT - related travel and subsistence ( per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid rank and file STATE employees under current State Department of Personnel Administration DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand within thirty ( 30) days of such invoice.
18. ADMINISTERING AGENCY agrees to comply with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards.
19. ADMINISTERING AGENCY agrees, and will ensure that its contractors and subcontractors will be obligated to agree, that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items.
ITEM NO. 9.
20. Every sub - recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR, Part 200, 23 CFR, 48 CFR Chapter 1, Part 31, Local Assistance Procedures, Public Contract Code ( PCC) 10300 -10334 ( procurement of goods), PCC 10335 -10381 ( non -A &E services), and other applicable STATE and FEDERAL regulations.
21. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, 23 CFR, 48 CFR, Chapter 1, Part 31, and other applicable STATE and FEDERAL regulations, are subject to repayment by ADMINISTERING AGENCY to STATE.
22. Should ADMINISTERING AGENCY fail to refund any moneys due upon written demand by STATE as provided hereunder or should ADMINISTERING AGENCY breach this AGREEMENT by failing to complete PROJECT without adequate justification and approval by STATE, then, within thirty 30 days of demand, or within such other period as may be agreed to in writing between the PARTIES, STATE, acting through the State Controller, the State Treasurer, or any other public entity or agency, may withhold or demand a transfer of an amount equal to the amount paid by or owed to STATE from future apportionments, or any other funds due ADMINISTERING AGENCY from the Highway Users Tax Fund or any other sources of funds, and /or may withhold approval of future ADMINISTERING AGENCY federal -aid projects.
23. Should ADMINISTERING AGENCY be declared to be in breach of this AGREEMENT or otherwise in default thereof by STATE, and if ADMINISTERING AGENCY is constituted as a joint powers authority, special district, or any other public entity not directly receiving funds through the State Controller, STATE is authorized to obtain reimbursement from whatever sources of funding are available, including the withholding or transfer of funds, pursuant to Article IV - 22, from those constituent entities comprising a joint powers authority or by bringing of an action against ADMINISTERING AGENCY or its constituent member entities, to recover all funds provided by STATE hereunder.
24. ADMINISTERING AGENCY acknowledges that the signatory party represents the ADMINISTERING AGENCY and further warrants that there is nothing within a Joint Powers Agreement, by which ADMINISTERING AGENCY was created, if any exists, that would restrict or otherwise limit STATE' s ability to recover State funds improperly spent by ADMINISTERING AGENCY in contravention of the terms of this AGREEMENT.
ITEM NO. 9.
ARTICLE V
AUDITS, THIRD PARTY CONTRACTING, RECORDS RETENTION AND REPORTS
1. STATE reserves the right to conduct technical and financial audits of PROJECT work and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by paragraph three ( 3) of ARTICLE V.
2. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices sent to or paid by STATE.
3. ADMINISTERING AGENCY, ADMINISTERING AGENCY' s contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts and ADMINISTERING AGENCY shall furnish copies thereof if requested. All of the above referenced parties shall make such AGREEMENT, PROGRAM SUPPLEMENT and contract materials available at their respective offices at all reasonable times during the entire PROJECT period and for three ( 3) years from the date of submission of the final expenditure report by the STATE to the FHWA.
4. ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audit Act of 2 CFR 200 if it expends $ 750, 000 or more in Federal Funds in a single fiscal year. The Federal Funds received under a PROGRAM SUPPLEMENT are a part of the Catalogue of Federal Domestic Assistance ( CFDA) 20.205.
5. ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting the terms of this AGREEMENT in the schedule of projects to be examined in ADMINISTERING AGENCY's annual audit and in the schedule of projects to be examined under its single audit prepared in accordance with 2 CFR, Part 200.
6. ADMINISTERING AGENCY shall not award a non -A &E contract over $ 5,000, construction contract over $ 10, 000, or other contracts over $25, 000 ( excluding professional service contracts of the type which are required to be procured in accordance with Government Code sections 4525 d), ( e) and ( f)) on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. Contracts awarded by ADMINISTERING AGENCY, if intended as local match credit, must meet the requirements set forth in this AGREEMENT regarding local match funds.
ITEM NO. 9.
7. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain provisions 5, 6, 17, 19 and 20 of ARTICLE IV, FISCAL PROVISIONS, and provisions 1, 2, and 3 of this ARTICLE V, AUDITS, THIRD -PARTY CONTRACTING RECORDS RETENTION AND REPORTS.
8. To be eligible for local match credit, ADMINISTERING AGENCY must ensure that local match funds used for a PROJECT meet the fiscal provisions requirements outlined in ARTICLE IV in the same manner as required of all other PROJECT expenditures.
9. In addition to the above, the pre -award requirements of third -party contractor / consultants with ADMINISTERING AGENCY should be consistent with the LOCAL ASSISTANCE PROCEDURES.
ITEM NO. 9.
ARTICLE VI - FEDERAL LOBBYING ACTIVITIES CERTIFICATION
1. By execution of this AGREEMENT, ADMINISTERING AGENCY certifies, to the best of the signatory officer's knowledge and belief, that:
A. No federal or state appropriated funds have been paid or will be paid, by or on behalf of ADMINISTERING AGENCY, to any person for influencing or attempting to influence an officer or employee of any STATE or federal agency, a member of the State Legislature or United States Congress, an officer or employee of the Legislature or Congress, or any employee of a Member of the Legislature or Congress in connection with the awarding of any STATE or federal contract, including this AGREEMENT, the making of any STATE or federal loan, the entering into of any cooperative contract, and the extension, continuation, renewal, amendment, or modification of any STATE or federal contract, grant, loan, or cooperative contract.
B. If any funds other than federal appropriated funds have been paid, or will be paid, to any person for influencing or attempting to influence an officer or employee of any federal agency, a member of Congress, an officer or employee of Congress or an employee of a member of Congress in connection with this AGREEMENT, grant, local, or cooperative contract, ADMINISTERING AGENCY shall complete and submit Standard Form -LLL, " Disclosure Form to Rep Lobbying," in accordance with the form instructions.
C. This certification is a material representation of fact upon which reliance was placed when this AGREEMENT and each PROGRAM SUPPLEMENT was or will be made or entered into.
Submission of this certification is a prerequisite for making or entering into this AGREEMENT imposed by Section 1352, Title 31, United States Code. Any party who fails to file the required certification shall be subject to a civil penalty of not less than $ 10, 000 and not more than $ 100,000 for each such failure.
2. ADMINISTERING AGENCY also agrees by signing this AGREEMENT that the language of this certification will be included in all lower tier sub - agreements which exceed $ 100,000 and that all such sub - recipients shall certify and disclose accordingly.
ITEM NO. 9.
ARTICLE VII - MISCELLANEOUS PROVISIONS
1. ADMINISTERING AGENCY agrees to use all state funds reimbursed hereunder only for transportation purposes that are in conformance with Article XIX of the California State Constitution and the relevant Federal Regulations.
2. This AGREEMENT is subject to any additional restrictions, limitations, conditions, or any statute enacted by the State Legislature or adopted by the CTC that may affect the provisions, terms, or funding of this AGREEMENT in any manner.
3. ADMINISTERING AGENCY and the officers and employees of ADMINISTERING AGENCY, when engaged in the performance of this AGREEMENT, shall act in an independent capacity and not as officers, employees or agents of STATE or the federal government.
4. Each project- specific E -76 or E -76 ( AMOD), PROGRAM SUPPLEMENT and Finance Letter shall separately establish the terms and funding limits for each described PROJECT funded under the AGREEMENT. No federal or state funds are obligated against this AGREEMENT.
5. ADMINISTERING AGENCY certifies that neither ADMINISTERING AGENCY nor its principals are suspended or debarred at the time of the execution of this AGREEMENT. ADMINISTERING AGENCY agrees that it will notify STATE immediately in the event a suspension or a debarment occurs after the execution of this AGREEMENT.
6. ADMINISTERING AGENCY warrants, by execution of this AGREEMENT, that no person or selling agency has been employed or retained to solicit or secure this AGREEMENT upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by ADMINISTERING AGENCY for the purpose of securing business. For breach or violation of this warranty, STATE has the right to annul this AGREEMENT without liability, pay only for the value of the work actually performed, or in STATE' s discretion, to deduct from the price of consideration, or otherwise recover, the full amount of such commission, percentage, brokerage, or contingent fee.
7. In accordance with Public Contract Code section 10296, ADMINISTERING AGENCY hereby certifies under penalty of perjury that no more than one final unappealable finding of contempt of court by a federal court has been issued against ADMINISTERING AGENCY within the immediate preceding two ( 2) year period because of ADMINISTERING AGENCY' s failure to comply with an order of a federal court that orders ADMINISTERING AGENCY to comply with an order of the National Labor Relations Board.
8. ADMINISTERING AGENCY shall disclose any financial, business, or other relationship with STATE, FHWA or Federal Transit Administration ( FTA) that may have an impact upon the outcome of this AGREEMENT. ADMINISTERING AGENCY shall also list current contractors who may have a financial interest in the outcome of this AGREEMENT.
9. ADMINISTERING AGENCY hereby certifies that it does not have nor shall it acquire any financial or business interest that would conflict with the performance of PROJECT under this AGREEMENT.
ITEM NO. 9.
10. ADMINISTERING AGENCY warrants that this AGREEMENT was not obtained or secured through rebates, kickbacks or other unlawful consideration either promised or paid to any STATE employee. For breach or violation of this warranty, STATE shall have the right, in its discretion, to terminate this AGREEMENT without liability, to pay only for the work actually performed, or to deduct from the PROGRAM SUPPLEMENT price or otherwise recover the full amount of such rebate, kickback, or other unlawful consideration.
11. Any dispute concerning a question of fact arising under this AGREEMENT that is not disposed of by agreement shall be decided by the STATE' s Contract Officer who may consider any written or verbal evidence submitted by ADMINISTERING AGENCY. The decision of the Contract Officer, issued in writing, shall be conclusive and binding on the PARTIES on all questions of fact considered and determined by the Contract Officer.
12. Neither the pending of a dispute' nor its consideration by the Contract Officer will excuse ADMINISTERING AGENCY from full and timely performance in accordance with the terms of this AGREEMENT.
13. Neither ADMINISTERING AGENCY nor any officer or employee thereof is responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by STATE, under or in connection with any work, authority or jurisdiction arising under this AGREEMENT. It is understood and agreed that STATE shall fully defend, indemnify and save harmless the ADMINISTERING AGENCY and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contractual, inverse condemnation and other theories or assertions of liability occurring by reason of anything done or omitted to be done by STATE under this AGREEMENT.
14. Neither STATE nor any officer or employee thereof shall be responsible for any injury, damage or liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under, or in connection with, any work, authority or jurisdiction arising under this AGREEMENT. It is understood and agreed that ADMINISTERING AGENCY shall fully defend, indemnify and save harmless STATE and all of its officers and employees from all claims, suits or actions of every name, kind and description brought forth under, including, but not limited to, tortious, contractual, inverse condemnation or pther theories or assertions of liability occurring by reason of anything done or omitted to be done by ADMINISTERING AGENCY under this AGREEMENT.
15. STATE reserves the right to terminate funding for any PROJECT upon written notice to ADMINISTERING AGENCY in the event that ADMINISTERING AGENCY fails to proceed with PROJECT work in accordance with the project- specific PROGRAM SUPPLEMENT, the bonding requirements if applicable, or otherwise violates the conditions of this AGREEMENT and /or PROGRAM SUPPLEMENT, or the funding allocation such that substantial performance is significantly endangered.
ITEM NO. 9.
16. No termination shall become effective if, within thirty ( 30) days after receipt of a Notice of Termination, ADMINISTERING AGENCY either cures the default involved or, if not reasonably susceptible of cure within said thirty ( 30) day period, ADMINISTERING AGENCY proceeds thereafter to complete the cure in a manner and time line acceptable to STATE. Any such termination shall be accomplished by delivery to ADMINISTERING AGENCY of a Notice of Termination, which notice shall become effective not less than thirty ( 30) days after receipt, specifying the reason for the termination, the extent to which funding of work under this AGREEMENT is terminated and the date upon which such termination becomes effective, if beyond thirty ( 30) days after receipt. During the period before the effective termination date, ADMINISTERING AGENCY and STATE shall meet to attempt to resolve any dispute. In the event of such termination, STATE may proceed with the PROJECT work in a manner deemed proper by STATE. If STATE terminates funding for PROJECT with ADMINISTERING AGENCY, STATE shall pay ADMINISTERING AGENCY the sum due ADMINISTERING AGENCY under the PROGRAM SUPPLEMENT and /or STATE approved finance letter prior to termination, provided, however, ADMINISTERING AGENCY is not in default of the terms and conditions of this AGREEMENT or the project- specific PROGRAM SUPPLEMENT and that the cost of PROJECT completion to STATE shall first be deducted from any sum due ADMINISTERING AGENCY.
17. In case of inconsistency or conflicts with the terms of this AGREEMENT and that of a project - specific PROGRAM SUPPLEMENT, the terms stated in that PROGRAM SUPPLEMENT shall prevail over those in this AGREEMENT.
18. Without the written consent of STATE, this AGREEMENT is not assignable by ADMINISTERING AGENCY either in whole or in part.
19. No alteration or variation of the terms of this AGREEMENT shall be valid unless made in writing and signed by the PARTIES, and no oral understanding or agreement not incorporated herein shall be binding on any of the PARTIES.
IN WITNESS WHEREOF, the PARTIES have executed this AGREEMENT by their duly authorized officers.
STATE OF CALIFORNIA
DEPARTMENT OF TRA. ISP WTION City of Los Gatos
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By By 1p
Lau -rcl Prevetl' i
Chief, Office of Project Implementation V) 0-n ILiI
y
Division of Local Assistance City of Los Gatos
Representative Name & Title
Authorized Governing Body Representative)
Date ' r21 29 ", / Date Z ZyI t g
y i
ITEM NO. 9.
EXHIBIT A
FAIR EMPLOYMENT PRACTICES ADDENDUM
1. In the performance of this Agreement, ADMINISTERING AGENCY will not discriminate against any employee for employment because of race, color, sex, sexual orientation, religion, ancestry or national origin, physical disability, medical condition, marital status, political affiliation, family and medical care leave, pregnancy leave, or disability leave. ADMINISTERING AGENCY will take affirmative action to ensure that employees are treated during employment without regard to their race, sex, sexual orientation, color, religion, ancestry, or national origin, physical disability, medical condition, marital status, political affiliation, family and medical care leave, pregnancy leave, or disability leave. Such action shall include, but not be limited to, the following: employment; upgrading; demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
ADMINISTERING AGENCY shall post in conspicuous places, available to employees for employment, notices to be provided by STATE setting forth the provisions of this Fair Employment section.
2. ADMINISTERING AGENCY, its contractor(s) and all subcontractors shall comply with the provisions of the Fair Employment and Housing Act ( Government Code Section 1290 -0 et seq.), and the applicable regulations promulgated thereunder ( California Code of Regulations, Title 2, Section 7285. 0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900( a -f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this AGREEMENT by reference and made a part hereof as if set forth in full. Each of the ADMINISTERING AGENCY' S contractors and all subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreements, as appropriate.
3. ADMINISTERING AGENCY shall include the nondiscrimination and compliance provisions of this clause in all contracts and subcontracts to perform work under this AGREEMENT.
4. ADMINISTERING AGENCY will permit access to the records of employment, employment advertisements, application forms, and other pertinent data and records by STATE, the State Fair Employment and Housing Commission, or any other agency of the State of California designated by STATE, for the purposes of investigation to ascertain compliance with the Fair Employment section of this Agreement.
5. Remedies for Willful Violation:
a) STATE may determine a willful violation of the Fair Employment provision to have occurred upon receipt of a final judgment to that effect from a court in an action to which ADMINISTERING AGENCY was a party, or upon receipt of a written notice from the Fair Employment and Housing Commission that it has investigated and determined that ADMINISTERING AGENCY has violated the Fair Employment Practices Act and had issued an order under Labor Code Section 1426 which has become final or has obtained an injunction under Labor Code Section 1429.
ITEM NO. 9.
b) For willful violation of this Fair Employment Provision, STATE shall have the right to terminate this Agreement either in whole or in part, and any loss or damage sustained by STATE in securing the goods or services thereunder shall be borne and paid for by ADMINISTERING AGENCY and by the surety under the performance bond, if any, and STATE may deduct from any moneys due or thereafter may become due to ADMINISTERING AGENCY, the difference between the price named in the Agreement and the actual cost thereof to STATE to cure ADMINISTERING AGENCY's breach of this Agreement.
ITEM NO. 9.
EXHIBIT B
NONDISCRIMINATION ASSURANCES
ADMINISTERING AGENCY HEREBY AGREES THAT, as a condition to receiving any federal financial assistance from the STATE, acting for the U. S. Department of Transportation, it will comply with Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 U. S. C. 2000d -42 U. S. C. 2000d -4 ( hereinafter referred to as the ACT), and all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, " Nondiscrimination in Federally- Assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964" ( hereinafter referred to as the REGULATIONS), the Federal -aid Highway Act of 1973, and other pertinent directives, to the end that in accordance with the ACT, REGULATIONS, and other pertinent directives, no person in the United States shall, on the grounds of race, color, sex, national origin, religion, age or disability, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity. for which ADMINISTERING AGENCY receives federal financial assistance from the Federal Department of Transportation. ADMINISTERING AGENCY HEREBY GIVES ASSURANCE THAT ADMINISTERING AGENCY will promptly take any measures necessary to effectuate this agreement. This assurance is required by subsection
21. 7( a) ( 1) of the REGULATIONS.
More specifically, and without limiting the above general assurance, ADMINISTERING AGENCY hereby gives the following specific. assurances with respect to its federal -aid Program:
1. That ADMINISTERING AGENCY agrees that each " program" and each " facility" as defined in subsections 21. 23 ( e) and 21. 23 ( b) of the REGULATIONS, will be ( with regard to a " program ") conducted, or will be ( with regard to a " facility ") operated in compliance with all requirements imposed by, or pursuant to, the REGULATIONS.
2. That ADMINISTERING AGENCY shall insert the following notification in all solicitations for bids for work or material subject to the REGULATIONS made in connection with the federal -aid Program and., in adapted form, in all proposals for negotiated agreements:
ADMINISTERING AGENCY hereby notifies all bidders that it will affirmatively ensure that in any agreement entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, sex, national origin, religion, age, or disability in consideration for an award.
3. That ADMINISTERING AGENCY shall insert the clauses of Appendix A of this assurance in every agreement subject to the ACT and the REGULATIONS.
4. That the clauses of Appendix B of this Assurance shall be included as a covenant running with the land, in any deed effecting a transfer of real property, structures, or improvements thereon, or interest therein.
ITEM NO. 9.
5. That where ADMINISTERING AGENCY receives federal financial assistance to construct a facility, or part of a facility, the Assurance shall extend to the entire facility and facilities operated in connection therewith.
6. That where ADMINISTERING AGENCY receives federal financial assistance in the form, or for the acquisition, of real property or an interest in real property, the Assurance shall extend to rights to space on, over, or under such property.
7. That ADMINISTERING AGENCY shall include the appropriate clauses set forth in Appendix C and D of this Assurance, as a covenant running with the land, in any future deeds, leases, permits, licenses, and similar agreements entered into by the ADMINISTERING AGENCY with other parties:
Appendix C;
a) for the subsequent transfer of real property acquired or improved under the federal -aid Program; and
Appendix D;
b) for the construction or use of or access to space on, over, or under real property acquired, or improved under the federal -aid Program.
8. That this assurance obligates ADMINISTERING AGENCY for the period during which federal financial assistance is extended to the program, except where the federal financial assistance is to provide, or is in the form of, personal property or real property or interest therein, or structures, or improvements thereon, in which case the assurance obligates ADMINISTERING AGENCY or any transferee for the longer of the following periods:
a) the period during which the property is used for a purpose for which the federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or
b) the period during which ADMINISTERING AGENCY retains ownership or possession of the property.
9. That ADMINISTERING AGENCY shall provide for such methods of administration for the program as are found by the U. S. Secretary of Transportation, or the official to whom he delegates specific authority, to give reasonable guarantee that ADMINISTERING AGENCY, other recipients, sub - grantees, applicants, sub - applicants, transferees, successors in interest, and other participants of federal financial assistance under such program will comply with all requirements imposed by, or pursuant to, the ACT, the REGULATIONS, this Assurance and the Agreement.
10. That ADMINISTERING AGENCY agrees that the United States and the State of California have a right to seek judicial enforcement with regard to any matter arising under the ACT, the REGULATIONS, and this Assurance.
ITEM NO. 9.
11. ADMINISTERING AGENCY shall not discriminate on the basis of race, religion, age, disability, color, national origin or sex in the award and performance of any STATE assisted contract or in the administration on its DBE Program or the requirements of 49 CFR Part 26. ADMINISTERING AGENCY shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of STATE assisted contracts. ADMINISTERING AGENCY' S DBE Implementation Agreement is incorporated by reference in this AGREEMENT.
Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recipient of its failure to carry out its approved DBE Implementation Agreement, STATE may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 USC 1001 and /or the Program Fraud Civil Remedies Act of 1985 ( 31 USC 3801 et seq.) THESE ASSURANCES are given in consideration of and for the purpose of obtaining any and all federal grants, loans, agreements, property, discounts or other federal financial assistance extended after the date hereof to ADMINISTERING AGENCY by STATE, acting for the U. S.
Department of Transportation, and is binding on ADMINISTERING AGENCY, other recipients, subgrantees, applicants, sub - applicants, transferees, successors in interest and other participants in the federal -aid Highway Program.
ITEM NO. 9.
APPENDIX A TO EXHIBIT B
During the performance of this Agreement, ADMINISTERING AGENCY, for itself, its assignees and successors in interest ( hereinafter collectively referred to as ADMINISTERING AGENCY) agrees as follows:
1) Compliance with Regulations: ADMINISTERING AGENCY shall comply with the regulations relative to nondiscrimination in federally assisted programs of the Department of Transportation, Title 49, Code of Federal Regulations, Part 21, as they may be amended from time to time, hereinafter referred to as the REGULATIONS!), which are herein incorporated by reference and made a part of this agreement.
2) Nondiscrimination: ADMINISTERING AGENCY, with regard to the work performed by it during the AGREEMENT, shall not discriminate on the grounds of race, color, sex, national origin, religion, age, or disability in the selection and retention of sub - applicants, including procurements of materials and leases of equipment. ADMINISTERING AGENCY shall not participate either directly or indirectly in the discrimination prohibited by Section 21. 5 of the REGULATIONS, including employment practices when the agreement covers a program set forth in Appendix B of the REGULATIONS.
3) Solicitations for Sub - agreements, Including Procurements of Materials and Equipment: In all solicitations either by competitive bidding or negotiation made by ADMINISTERING AGENCY for work to, be performed under a Sub - agreement, including procurements of materials or leases of equipment, each potential sub - applicant or supplier shall be notified by ADMINISTERING AGENCY of the ADMINISTERING AGENCY's obligations under this Agreement and the REGULATIONS relative to nondiscrimination on the grounds of race, color, or national origin. 4) Information and Reports: ADMINISTERING AGENCY shall provide all information and reports required by the REGULATIONS, or directives issued pursuant thereto, and shall permit access to ADMINISTERING AGENCY' s books, records; accounts, other sources of information, and its facilities as may be determined by STATE or FHWA to be pertinent to ascertain compliance with such REGULATIONS or directives. Where any information required of ADMINISTERING AGENCY is in the exclusive possession of another who fails or refuses to furnish this information, ADMINISTERING AGENCY shall so certify to STATE or the FHWA as appropriate, and shall set forth what efforts ADMINISTERING AGENCY has made to obtain the information. 5) Sanctions for Noncompliance: In the event of ADMINISTERING AGENCY' s noncompliance with the nondiscrimination provisions of this agreement, STATE shall impose such agreement sanctions as it or the FHWA may determine to be appropriate, including, but not limited to:
a) withholding of payments to ADMINISTERING AGENCY under the Agreement within a reasonable period of time, not to exceed 90 days; and /or b) cancellation, termination or suspension of the Agreement, in whole or in part.
ITEM NO. 9.
6) Incorporation of Provisions: ADMINISTERING AGENCY shall include the provisions of paragraphs ( 1) through ( 6) in every sub - agreement, including procurements of materials and leases of equipment, unless exempt by the REGULATIONS, or directives issued pursuant thereto.
ADMINISTERING AGENCY shall take such action with respect to any sub - agreement or procurement as STATE or FHWA may direct as a means of enforcing such provisions including sanctions for noncompliance, provided, however, that, in the event ADMINISTERING AGENCY becomes involved in, or is threatened with, litigation with a sub - applicant or supplier as a result of such direction, ADMINISTERING AGENCY may request STATE enter into such litigation to protect the interests of STATE, and, in addition, ADMINISTERING AGENCY may request the United States to enter into such litigation to protect the interests of the United States.
APPENDIX B TO EXHIBIT B
ITEM NO. 9.
The following clauses shall be included in any and all deeds effecting or recording the transfer of PROJECT real property, structures or improvements thereon, or interest therein from the United States.
GRANTING CLAUSE)
NOW, THEREFORE, the U. S. Department of Transportation, as authorized by law, and upon the condition that ADMINISTERING AGENCY will accept title to the lands and maintain the project constructed thereon, in accordance with Title 23, United States Code, the Regulations for the Administration of federal -aid for Highways and the policies and procedures prescribed by the Federal Highway Administration of the Department of Transportation and, also in accordance with and in compliance with the Regulations pertaining to and effectuating the provisions of Title VI of the Civil Rights Act of 1964 ( 78 Stat. 252; 42 U. S. C. 2000d to 2000d -4), does hereby remise, release, quitclaim and convey unto the ADMINISTERING AGENCY all the right, title, and interest of the U. S. Department of Transportation in, and to, said lands described in Exhibit " A" attached hereto and made a part hereof.
HABENDUM CLAUSE)
TO HAVE AND TO HOLD said lands and interests therein unto ADMINISTERING AGENCY and its successors forever, subject, however, to the covenant, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or structures are used for a purpose for which federal financial assistance is extended or for another purpose involving the provision of similar services or benefits and shall be binding on ADMINISTERING AGENCY, its successors and assigns.
ADMINISTERING AGENCY, in consideration of the conveyance of said lands and interests in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns,
1) that no person shall on the grounds of race, color, sex, national origin, religion, age or disability, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed (;) ( and)'
2) that ADMINISTERING AGENCY shall use the lands and interests in lands so conveyed, in compliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non - discrimination in federally- assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended (;) and 3) that in the event of breach of any of the above - mentioned nondiscrimination conditions, the U. S. Department of Transportation shall have a right to re -enter said lands and facilities on said land, and the above - described land and facilities shall thereon revert to and vest in and become the absolute property of the U. S. Department of Transportation and its assigns as such interest existed prior to this deed.'
Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964.
ITEM NO. 9.
APPENDIX C TO EXHIBIT B
The following clauses shall be included in any and all deeds, licenses, leases, permits, or similar instruments entered into by ADMINISTERING AGENCY, pursuant to the provisions of Assurance 7( a) of Exhibit B.
The grantee ( licensee, lessee, permittee, etc., as appropriate) for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree ( in the case of deeds and leases add " as covenant running with the land ") that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this ( deed, license, lease, permit, etc.) for a purpose for which a U. S.
Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the ( grantee, licensee, lessee, permittee, etc.), shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, U. S. Department of Transportation, Subtitle A, Office of Secretary, Part 21, Nondiscrimination in federally- assisted programs of the Department of Transportation - Effectuation of ;Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.
Include in licenses, leases, permits, etc.)'
That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING AGENCY shall have the, right to terminate the ( license, lease, permit etc.) and to re -enter and repossess said land and the facilities thereon, and hold the same as if said ( license, lease, permit, etc.) had never been made or issued.
Include in deeds)`
That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING AGENCY shall have the right to re -enter said land and facilities thereon, and the above - described lands and facilities shall thereupon revert to and vest in and become the absolute property of ADMINISTERING AGENCY and its assigns.
Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964.
ITEM NO. 9.
APPENDIX D TO EXHIBIT B
The following shall be included in all deeds, licenses, leases, permits, or similar agreements entered into by the ADMINISTERING AGENCY, pursuant to the provisions of Assurance 7 ( b) of Exhibit B.
The grantee ( licensee, lessee, permittee, etc., as appropriate) for himself, his personal representatives, successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree ( in the case of deeds, and leases add " as a covenant running with the land ") that:
1) no person on the ground of race, color, sex, national origin, religion, age or disability, shall be excluded from participation in, denied the benefits of, or otherwise subjected to discrimination in the use of said facilities;
2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the ground of race, color, sex, national origin, religion, age or disability shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; and
3) that the ( grantee, licensee, lessee, permittee, etc.,) shall use the premises in compliance with the Regulations.
Include in licenses, leases, permits, etc.)*
That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING AGENCY shall have the, right to terminate the ( license, lease, permit, etc.) and to re -enter and repossess said land and the facilities thereon, and hold the same as if said ( license, lease, permit, etc.) had never been made or issued.
Include in deeds)*
That in the event of breach of any of the above nondiscrimination covenants, ADMINISTERING AGENCY shall have the right to re -enter said land and facilities thereon, and the above - described lands and facilities shall thereupon revert to and vest in and become the absolute property of ADMINISTERING AGENCY, and its assigns.
Reverter clause and related language to be used only when it is determined that such a clause is necessary in order to effectuate the purposes of Title VI of the Civil Rights Act of 1964.
ITEM NO. 9.
F014
FOR FEDERAL-AID PROJECTS NO 04-5067F15
0422000004
February 12, 2024
04-SCL-0-LGTS
CML-5067(024)
5067
This Program Supplement hereby adopts and incorporates the Administering Agency-State Agreement for Federal Aid which was entered into between the Administering Agency and the State on 02/28/2019 and is subject to all the terms and conditions thereof. This Program Supplement is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the Administering Agency on (See copy attached).
The Administering Agency further stipulates that as a condition to the payment by the State of any funds derived from sources noted below obligated to this PROJECT, the Administering Agency accepts and will comply with the special covenants or remarks set forth on the following pages.
Town of Los Gatos: On the north side of Shannon Road between Los Gatos Blvd and Cherry Blossom Lane
Pedestrian and Bike Path 0.3(MILES)
Estimated Cost Federal Funds Matching Funds
Y003 $940,100.00
TOWN OF LOS GATOS
By ________________________________ By ________________________________ Title _______________________________
Date _______________________________
Attest _______________________________ Date _______________________________ Division of Local Assistance
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:
Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to
ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:
Location:
Project Number:
E.A. Number:
Locode:
PROJECT LOCATION:
TYPE OF WORK: LENGTH:
LOCAL OTHER
$2,080,701.86 $1,140,601.86 $0.00
Chief, Office of Project Implementation
STATE OF CALIFORNIA
Department of Transportation
$940,100.00
Program Supplement 04-5067F15-F014- ISTEA 1Page of 7
02/13/2024
ATTACHMENT 2
Town Manager
Wendy Wood, Town Clerk
ITEM NO. 9.
5 Approved as to Form:
_____________________________________
Gabrielle Whelan, Town Attorney
Attest:
_____________________________________
Wendy Wood, CMC, Town Clerk
ITEM NO. 9.
SPECIAL COVENANTS OR REMARKS
04-SCL-0-LGTS
CML-5067(024)
1. A. The ADMINISTERING AGENCY will advertise, award and administer this project in accordance with the current published Local Assistance Procedures Manual.
B. ADMINISTERING AGENCY agrees that it will only proceed with work authorized for specific phase(s) with an "Authorization to Proceed" and will not proceed with future phase(s) of this project prior to receiving an "Authorization to Proceed" from the STATE for that phase(s) unless no further State or Federal funds are needed for those future phase(s).
C. STATE and ADMINISTERING AGENCY agree that any additional funds which might be made available by future Federal obligations will be encumbered on this PROJECT by use of a STATE-approved "Authorization to Proceed" and Finance Letter. ADMINISTERING AGENCY agrees that Federal funds available for reimbursement will be limited to the amounts obligated by the Federal Highway Administration.
D. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer within 60 days of project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract.
Failure to do so will cause a delay in the State processing invoices for the construction phase.
Attention is directed to Section 15.6 "Award Package" of the Local Assistance Procedures Manual.
E. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumbrances for State funded projects, as well as to suspend invoice payments for any on-going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period.
If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount.
ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current Local Assistance Procedures Manual.
Program Supplement 04-5067F15-F014- ISTEA Page 2 of 7
ITEM NO. 9.
SPECIAL COVENANTS OR REMARKS
04-SCL-0-LGTS
CML-5067(024)
F. Administering Agency shall not discriminate on the basis of race, religion, age, disability, color, national origin, or sex in the award and performance of any Federal-assisted contract or in the administration of its DBE Program Implementation Agreement. The Administering Agency shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of Federal-assisted contracts. The Administering Agency's DBE Implementation Agreement is incorporated by reference in this Agreement. Implementation of the DBE Implementation Agreement, including but not limited to timely reporting of DBE commitments and utilization, is a legal obligation and failure to carry out its terms shall be treated as a violation of this Agreement. Upon notification to the Administering Agency of its failure to carry out its DBE Implementation Agreement, the State may impose sanctions as provided for under 49 CFR Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).
G. Any State and Federal funds that may have been encumbered for this project are available for disbursement for limited periods of time. For each fund encumbrance the limited period is from the start of the fiscal year that the specific fund was appropriated within the State Budget Act to the applicable fund Reversion Date shown on the State approved project finance letter. Per Government Code Section 16304, all project funds not liquidated within these periods will revert unless an executed Cooperative Work Agreement extending these dates is requested by the ADMINISTERING AGENCY and approved by the California Department of Finance.
ADMINISTERING AGENCY should ensure that invoices are submitted to the District Local Assistance Engineer at least 75 days prior to the applicable fund Reversion Date to avoid the lapse of applicable funds. Pursuant to a directive from the State Controller's Office and the Department of Finance; in order for payment to be made, the last date the District Local Assistance Engineer can forward an invoice for payment to the Department's Local Programs Accounting Office for reimbursable work for funds that are going to revert at the end of a particular fiscal year is May 15th of the particular fiscal year. Notwithstanding the unliquidated sums of project specific State and Federal funding remaining and available to fund project work, any invoice for reimbursement involving applicable funds that is not received by the Department's Local Programs Accounting Office at least 45 days prior to the applicable fixed fund Reversion Date will not be paid. These unexpended funds will be irrevocably reverted by the Department's Division of Accounting on the applicable fund Reversion Date.
H. As a condition for receiving federal-aid highway funds for the PROJECT, the Administering Agency certifies that NO members of the elected board, council, or other key decision makers are on the Federal Government Exclusion List. Exclusions can be found at www.sam.gov.
Program Supplement 04-5067F15-F014- ISTEA Page 3 of 7
ITEM NO. 9.
SPECIAL COVENANTS OR REMARKS
04-SCL-0-LGTS
CML-5067(024)
2. A. ADMINISTERING AGENCY shall conform to all State statutes, regulations and procedures (including those set forth in the Local Assistance Procedures Manual and the Local Assistance Program Guidelines, hereafter collectively referred to as "LOCAL ASSISTANCE PROCEDURES") relating to the federal-aid program, all Title 23 Code of Federal Regulation (CFR) and 2 CFR Part 200 federal requirements, and all applicable federal laws, regulations, and policy and procedural or instructional memoranda, unless otherwise specifically waived as designated in the executed project-specific PROGRAM SUPPLEMENT.
B. Invoices shall be formatted in accordance with LOCAL ASSISTANCE PROCEDURES.
C. ADMINISTERING AGENCY must have at least one copy of supporting backup documentation for costs incurred and claimed for reimbursement by ADMINISTERING AGENCY. ADMINISTERING AGENCY agrees to submit supporting backup documentation with invoices if requested by State. Acceptable backup documentation includes, but is not limited to, agency's progress payment to the contractors, copies of cancelled checks showing amounts made payable to vendors and contractors, and/or a computerized summary of PROJECT costs.
D. Indirect Cost Allocation Plan/Indirect Cost Rate Proposals (ICAP/ICRP), Central Service Cost Allocation Plans and related documentation are to be prepared and provided to STATE (Caltrans Audits & Investigations) for review and approval prior to ADMINISTERING AGENCY seeking reimbursement of indirect costs incurred within each fiscal year being claimed for State and federal reimbursement. ICAPs/ICRPs must be prepared in accordance with the requirements set forth in 2 CFR, Part 200, Chapter 5 of the Local Assistance Procedural Manual, and the ICAP/ICRP approval procedures established by STATE.
E. STATE will withhold the greater of either two (2) percent of the total of all federal funds encumbered for each PROGRAM SUPPLEMENT or $40,000 until ADMINISTERING AGENCY submits the Final Report of Expenditures for each completed PROGRAM SUPPLEMENT PROJECT.
F. Payments to ADMINISTERING AGENCY for PROJECT-related travel and subsistence (per diem) expenses of ADMINISTERING AGENCY forces and its contractors and subcontractors claimed for reimbursement or as local match credit shall not exceed rates authorized to be paid rank and file STATE employees under current State Department of Personnel Administration (DPA) rules. If the rates invoiced by ADMINISTERING AGENCY are in excess of DPA rates, ADMINISTERING AGENCY is responsible for the cost difference, and any overpayments inadvertently paid by STATE shall be reimbursed to STATE by ADMINISTERING AGENCY on demand within thirty (30) days of such invoice.
Program Supplement 04-5067F15-F014- ISTEA Page 4 of 7
ITEM NO. 9.
SPECIAL COVENANTS OR REMARKS
04-SCL-0-LGTS
CML-5067(024)
G. ADMINISTERING AGENCY agrees to comply with 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards.
H. ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors will be obligated to agree, that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to determine the allowability of individual PROJECT cost items.
I. Every sub-recipient receiving PROJECT funds under this AGREEMENT shall comply with 2 CFR, Part 200, 23 CFR, 48 CFR Chapter 1, Part 31, Local Assistance Procedures, Public Contract Code (PCC) 10300-10334 (procurement of goods), PCC 10335-10381 (non-A&E services), and other applicable STATE and FEDERAL regulations.
J. Any PROJECT costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, 23 CFR, 48 CFR, Chapter 1, Part 31, and other applicable STATE and FEDERAL regulations, are subject to repayment by ADMINISTERING AGENCY to STATE.
K. STATE reserves the right to conduct technical and financial audits of PROJECT WORK and records and ADMINISTERING AGENCY agrees, and shall require its contractors and subcontractors to agree, to cooperate with STATE by making all appropriate and relevant PROJECT records available for audit and copying as required by the following paragraph:
ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractors, and STATE shall each maintain and make available for inspection and audit by STATE, the California State Auditor, or any duly authorized representative of STATE or the United States all books, documents, papers, accounting records, and other evidence pertaining to the performance of such contracts, including, but not limited to, the costs of administering those various contracts and ADMINISTERING AGENCY shall furnish copies thereof if requested.
All of the above referenced parties shall make such AGREEMENT, PROGRAM SUPPLEMENT, and contract materials available at their respective offices at all reasonable times during the entire PROJECT period and for three (3) years from the date of submission of the final expenditure report by the STATE to the FHWA.
L. ADMINISTERING AGENCY, its contractors and subcontractors shall establish and maintain a financial management system and records that properly accumulate and segregate reasonable, allowable, and allocable incurred PROJECT costs and matching funds by line item for the PROJECT. The financial management system
Program Supplement 04-5067F15-F014- ISTEA Page 5 of 7
ITEM NO. 9.
SPECIAL COVENANTS OR REMARKS
04-SCL-0-LGTS
CML-5067(024)
of ADMINISTERING AGENCY, its contractors and all subcontractors shall conform to Generally Accepted Accounting Principles, enable the determination of incurred costs at interim points of completion, and provide support for reimbursement payment vouchers or invoices set to or paid by STATE.
M. ADMINISTERING AGENCY is required to have an audit in accordance with the Single Audit Act of 2 CFR 200 if it expends $750,000 or more in Federal Funds in a single fiscal year of the Catalogue of Federal Domestic Assistance.
N. ADMINISTERING AGENCY agrees to include all PROGRAM SUPPLEMENTS adopting the terms of this AGREEMENT in the schedule of projects to be examined in ADMINISTERING AGENCY's annual audit and in the schedule of projects to be examined under its single audit prepared in accordance with 2 CFR, Part 200.
O. ADMINISTERING AGENCY shall not award a non-A&E contract over $5,000, construction contracts over $10,000, or other contracts over $25,000 [excluding professional service contracts of the type which are required to be procured in accordance with Government Code sections 4525 (d), (e) and (f)] on the basis of a noncompetitive negotiation for work to be performed under this AGREEMENT without the prior written approval of STATE. Contracts awarded by ADMINISTERING AGENCY, if intended as local match credit, must meet the requirements set forth in this AGREEMENT regarding local match funds.
P. Any subcontract entered into by ADMINISTERING AGENCY as a result of this AGREEMENT shall contain provisions B, C, F, H, I, K, and L under Section 2 of this agreement.
3. Appendix E of the Title VI Assurances (US DOT Order 1050.2A) During the performance of this agreement, the ADMINISTERING AGENCY, ADMINISTERING AGENCY'S contractors and subcontractor, (hereinafter referred to as the "contractor") agrees to comply with the following nondiscrimination statutes and authorities; including but not limited to:
Pertinent Nondiscrimination Authorities:
A. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin); and 49 CFR Part 21.
B. The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); C. Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), (prohibits discrimination on the basis of sex);
D. Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as Program Supplement 04-5067F15-F014- ISTEA Page 6 of 7
ITEM NO. 9.
SPECIAL COVENANTS OR REMARKS
04-SCL-0-LGTS
CML-5067(024)
amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27; E. The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
F. Airport and Airway Improvement Act of 1982, (49 U.S.C. 4 71, Section 4 7123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); G. The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or
activities" to include all of the programs or activities of the Federal-aid recipients, subrecipients and contractors, whether such programs or activities are Federally funded or not);
H. Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38; I. The Federal Aviation Administration's Nondiscrimination statute (49 U.S.C. 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); J. Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, which ensures nondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; K. Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100);
L. Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1681 et seq).
Program Supplement 04-5067F15-F014- ISTEA Page 7 of 7
ITEM NO. 9.
PREPARED BY: Dan Keller
Facilities & Environmental Services Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/24
DATE: April 1, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for Construction of the Corporation Yard Building Replacement Completed by S&H Construction, Inc., and Authorize the Town Clerk to File for Recordation
RECOMMENDATION:
Authorize the Town Manager to execute a certificate of acceptance and notice of completion for construction of the Corporation Yard Building Replacement completed by S&H Construction, Inc., and authorize the Town Clerk to file for recordation (Attachment 1).
BACKGROUND:
This phased project began in the summer of 2020 with phase one for the design and construction for the remodel of the engineering building and adjacent warehouse spaces at 41 Miles Avenue to accommodate engineering and maintenance staff. The project was completed in May 2021.
Phase two began in 2022 for the design and construction of a replacement building at 41 Miles Avenue to be utilized for storage for Parks and Public Works equipment and Police evidence.
At the August 2, 2022 Town Council meeting, Council authorized the Town Manager to execute a Construction Agreement with S&H Construction Inc. for the construction of the storage building for a total agreement amount not to exceed $999,180 including 30% for unanticipated services.
ITEM NO. 10.
PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for the Corporation Yard Building Replacement and Authorize the Town Clerk to File for Recordation
DATE: April 1, 2024
DISCUSSION:
S&H Construction, Inc. began work in fall 2022 and has satisfactorily completed all contracted work items, for a final construction cost of $817,468.
Five percent of the faithful performance bond will remain in effect for a period of two years as a guarantee for any needed repair or replacement caused by defective materials and/or workmanship for the project. The execution and recordation of the Certificate of Acceptance is now required to finalize the Town’s acceptance of the project and to release the retention funds withheld from the contractor.
CONCLUSION:
This Council action would close the active contract period with S&H Construction, Inc. and begin the warranty period for their work.
FISCAL IMPACT:
There were sufficient funds available in the CIP Budget for the Corporation Yard Building Replacement Project as displayed in the fiscal table.
Budget Costs
GFAR $ 2,651,781
Total Budget $ 2,651,781
Costs
Construction & Consultant Expenses $ 1,576,281
Construction Agreement with S&H Construction, Inc.
(Requested with this Staff Report) $ 817,468
Total Costs $ 2,393,749
Available Balance $ 258,032
Corporation Yard Building Replacement Project
CIP No. 821-2302
ITEM NO. 10.
PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for the Corporation Yard Building Replacement and Authorize the Town Clerk to File for Recordation
DATE: April 1, 2024
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and not further action was required.
Attachment:
1. Certificate of Acceptance and Notice of Completion
ITEM NO. 10.
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
CERTIFICATE OF ACCEPTANCE AND NOTICE OF COMPLETION
PPW JOB NO. 18-821-2302 Corporation Yard Building Replacement TO WHOM IT MAY CONCERN:
I do hereby certify that S&H Construction, Inc. completed the work called for in the agreement with the Town of Los Gatos dated August 9, 2022. The work is outlined in the Town’s bid process prepared by the Town of Los Gatos and generally consisted of furnishing all labor, materials, tools, equipment, and services required for completion of the PPW Job No. 18-821-2302 located in the TOWN OF LOS GATOS, County of Santa Clara, State of California and was completed, approved and accepted April 1, 2024.
Bond No.: 602-133948-9
Date: August 10, 2022
TOWN OF LOS GATOS
By: __________________________________
Laurel Prevetti, Town Manager
Acknowledgment Required
ATTACHMENT 1
ITEM NO. 10.
PREPARED BY: Katy Nomura
Assistant Town Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/16/2024
DATE: April 11, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve and Authorize the Town Manager to Execute a Memorandum of Understanding Between the Town of Los Gatos and the Police Officers’ Association, and Authorize an Expenditure Budget Adjustment in the Amount of $154,376 from the Available General Fund Capital/Special Projects Reserve RECOMMENDATION:
Approve and authorize the Town Manager to Execute a Memorandum of Understanding between the Town of Los Gatos and the Police Officers’ Association (POA), and authorize an expenditure budget adjustment in the amount of $154,376 from the available General Fund Capital/Special Projects Reserve.
BACKGROUND:
In accordance with the Town’s Employer-Employee Relations Resolution No. 1974-41, representatives of the Town and POA have met and conferred in good faith and within the scope of representation to reach agreement for a successor Memorandum of Understanding (MOU). The revised agreement showing the changes from the previous MOU is contained in Attachment 1. The MOU is a labor agreement that identifies specific terms and conditions of employment applicable to the employees represented by that agreement.
The Town has two other represented groups, the American Federation of State, County and Municipal Employees (AFSCME) and the Town Employees’ Association (TEA). Negotiations with these groups are not yet completed.
DISCUSSION:
The Town’s current agreement with POA expires on June 30, 2024. In October 2024, the Town and POA began negotiating for a successor agreement. Both parties shared a common goal to
ITEM NO. 11.
PAGE 2 OF 3
SUBJECT: Memorandum of Understanding with POA
DATE: April 11, 2024
DISCUSSION (continued):
address recruitment and retention challenges experienced by the Police Department. The Town is hopeful that the proposed MOU will support successful recruitment and retention efforts moving forward. A tentative agreement for a three-year term was reached in April 2024 and POA membership ratified on April 8, 2024. The Town is appreciative of the hard work of our Police Officers and of the collaboration of the POA negotiating team.
The following is a summary of the major provisions of the agreement:
1. Term: April 1, 2024 to June 30, 2027
2. Salary:
a. Effective the pay period containing April 1, 2024, the Town will provide a 6.5% salary increase.
b. Effective the first full pay period in July 2025, the Town will provide a 5% salary increase.
c. Effective the first full pay period in July 2026, the Town will provide a 4% salary increase.
3. PORAC Retiree Medical Plan Employer Contributions:
a. Effective July 2024, the Town shall contribute $25 per month to the PORAC Retiree Medical Plan for all members hired after October 1, 2018. b. Effective July 2025, the Town shall contribute $50 per month to the PORAC Retiree Medical Plan for all members hired after October 1, 2018.
4. Paid Parental Leave: Upon request from POA between July and December 2024, the Town and POA shall meet to agree and implement paid parental leave benefits that are equal or greater than those provided under the California Paid Family Leave program.
5. Therapy Canine Pay: Effective July 2024, officers assigned to handle a canine under the Department’s Therapy Canine Program shall receive one half hour of pay per day, totaling seven hours per pay period, at an hourly rate of one and one-half times the State minimum wage.
6. Outside Employment: Requests to work temporarily serve as a member of another law enforcement agency will automatically be denied unless the requesting employee has at least five years of experience as a sworn peace officer in a position that requires a basic POST certificate and has at least four years of service with the Town.
7. Vacation Accrual: Effective April 1, 2024, the individual rate of accrual for all members and future members shall be increased to account for total years of experience working in a sworn peace officer position that requires possession of a basic POST certificate.
The Town and POA have also agreed to various MOU language updates. These updates clarify existing language, delete obsolete language, and ensure compliance related to the Town’s contract for retirement and medical benefits provided under the California Public Employees’ Retirement System (CalPERS) and PEMHCA. The updates do not change existing benefits nor is there a related fiscal impact (see Attachment 1).
ITEM NO. 11.
PAGE 3 OF 3
SUBJECT: Memorandum of Understanding with POA
DATE: April 11, 2024
CONCLUSION:
The POA agreement has been prepared within the parameters provided to the Town’s negotiators by the Town Council and has been ratified by the POA membership. It is recommended that the Town Council approve the MOU, authorize the Town Manager to execute the MOU, and authorize an expenditure budget adjustment in the amount of $154,376.
COORDINATION:
This report was coordinated with the Town Manager’s Office, Finance Department, and outside legal counsel.
FISCAL IMPACT:
The anticipated fiscal impact for all salary and benefit adjustments in FY 2023/24 is $154,376.
The requested budget adjustment in this amount will provide the necessary funding to cover this cost.
Funding to support the FY 2024/25 costs will be incorporated into the proposed budget and the ongoing cost each year will be incorporated into the proposed future year budgets for Council approval.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Proposed POA MOU through June 30, 2027
2. Salary Schedule for POA effective pay period containing April 1, 2024
3. Salary Schedule for POA effective first full pay period July 2025
4. Salary Schedule for POA effective first full pay period in July 2026
ITEM NO. 11.
12409313.1 LO007-016
TOWN OF LOS GATOS
AND
LOS GATOS POLICE OFFICERS’ ASSOCIATION
MEMORANDUM OF UNDERSTANDING
October April 1, 20214 – June 30, 20247
ATTACHMENT 1
ITEM NO. 11.
12409313.1 LO007-016
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ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247 12409313.1 LO007-016
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE TOWN OF LOS GATOS
AND
THE LOS GATOS POLICE OFFICERS ASSOCIATION
THIS AGREEMENT IS ENTERED INTO AS OF October _________1, 20214, BETWEEN THE TOWN OF LOS GATOS, HEREINAFTER REFERRED TO AS THE "TOWN", AND THE LOS GATOS POLICE OFFICERS ASSOCIATION, HEREINAFTER REFERRED TO AS "POA".
Pursuant to Town Resolution 1974-41 of the Town of Los Gatos and Section 3500 et. seq. of the Government Code, the duly authorized representatives of the Town and POA, having met and conferred in good faith concerning the issues of wages, hours, and terms and conditions of employment, as herein set forth, declare their agreement to the provisions of this Memorandum of Understanding.
FOR THE TOWN: FOR POA:
Laurel Prevetti, Town Manager
______________________________________
Bryan PaulGreg Borromeo, President
Arn AndrewsKaty Nomura, Assistant Town
Manager
______________________________________
Salina Flores, Human Resources Director
______________________________________
Lisa S. Charbonneau Liebert Cassidy Whitmore
Kevin ElliottBill Hoyt, Police Sergeant
______________________________________
Kevin BaughnMike Birley, Police
OfficerDetective
______________________________________
John AlldredgeRiley Frizzell, Police
OfficerDetective
APPROVED AS TO FORM:
______________________________________
Gabrielle Whelan
Town Attorney
______________________________________
Peter Hoffmann, Rains Lucia Stern St. Phalle
Silver, PC
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247 12409313.1 LO007-016
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ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247 12409313.1 LO007-016
Preamble ..................................................................................................... 1 Term ..................................................................................................... 1
1. Employer-Employee Relations............................................................... 1
2. Savings Clause........................................................................................ 1
3. Payroll Deduction .................................................................................. 1
4. Non-Discrimination................................................................................ 2
4.1 General Provisions Regarding Americans with Disabilities Act ... 2
5. Salary ..................................................................................................... 2
5.1 Intent............................................................................................ 2
5.2 Effective Upon Approval.............................................................. 2
5.3 Effective 2022 .............................................................................. 3
5.4 Effective 2023............................................................................... 3
5.5 One-Time Lump Sum ................................................................... 3
5.6 Pandemic Related Bonus............................................................. 3
6. PERS Benefits......................................................................................... 3
6.1 PERS 3% At 50 Retirement Option Classic Members................... 4
6.2 PERS 2.7% at 57 Retirement Option New Members ................... 4
7. Education Incentive Pay ........................................................................ 4
7.1 Four-year Degree Incentive ......................................................... 4
7.2 Two-year Degree Incentive Pay ................................................... 4
7.3 Commencement of Educational Incentive Pay ........................... 5
7.4 Re-Opener.................................................................................... 5
8. POST Certification Pay ……………………………………………………………………… 5
9. Special Pays............................................................................................ 5
9.1 Special Assignment Pay................................................................ 5
9.2 Bilingual Pay................................................................................. 6
9.3 Canine Pay.................................................................................... 6
9.4 FTO Training Premium ................................................................. 7
9.5 Trailing Canine Pay ...................................................................... 7
9.6 Posting for Special Assignments………………………………………………..7
10. Acting Sergeant Pay............................................................................... 8
11. Reimbursement of Expenses................................................................. 8
12. Tuition Reimbursement......................................................................... 8
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247 12409313.1 LO007-016
13. Health and Welfare Benefits and Rate of Town Contribution............... 8
13.1 Cafeteria Plan............................................................................... 8
13.2 Dental........................................................................................... 8
13.3 Medical ........................................................................................ 9
13.4 Vision............................................................................................ 9
13.5 Cash-In-Lieu Plan.......................................................................... 9
13.6 Supplemental Health and Welfare Benefits................................ 9
14. Retiree Health......................................................................................10
14.1 Retiree Health Benefit for Eligible Retirees Hired on or Before October 1, 2018………………………………………………………………………………………….10
14.2 Retiree Health Benefit for Eligible Retirees Hired After October 1, 2018…………………………………………………………………………………………..11
15. Uniforms..............................................................................................12
16. Mileage Reimbursement .....................................................................12
17. Payroll Periods.....................................................................................12
18. Paychecks.............................................................................................12
19. Deferred Compensation ......................................................................12
20. Overtime..............................................................................................12
21. Duty Extension.....................................................................................13
22. Call Back...............................................................................................13
23. Vacation Schedule ...............................................................................13
24. Vacation and Compensatory Time Off Cash-Out………………….…………..14
25. Shift and Vacation Selection Procedures.............................................14
26. Holidays and Holiday Pay.....................................................................14
27. Personal Leave.....................................................................................15
28. Sick Leave.............................................................................................15
29. Sick Leave Cash-Out Program..............................................................15
29.1 Annual Sick Leave Cash-Out for Employees Hired Prior to October 1, 2018…..15
29.2 Sick Leave Cash-Out Upon Termination for Employees Hired Prior to October 1, 2018….15
29.3 Unused Sick Leave Upon Retirement.........................................15
30. Military Leave ......................................................................................16
31. Bereavement/Compassion Leave........................................................16
32. Leave Without Pay...............................................................................16
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247 12409313.1 LO007-016
33. Accrual of Benefits...............................................................................17
34. Workers’ Compensation......................................................................17
35. Jury Duty..............................................................................................17
36. Outside Employment...........................................................................17
37. Residency Requirement.......................................................................17
38. Layoff Policy.........................................................................................17
39. VehiclesPaid Family Leave...................................................................17
40. Promotions..........................................................................................18
41. Probationary Period.............................................................................18
42. Performance Evaluations.....................................................................18
43. Reinstatement .....................................................................................19
44. Re-employment...................................................................................19
45. Grievance Procedures..........................................................................19
46. Attendance ..........................................................................................20
47. Completeness of MOU ........................................................................20
48. Association Notification or Communications......................................20
49. Labor-Management Committee………………………………………………………..20
50. Catastrophic Time Bank.......................................................................20
51. Me Too Clause .....................................................................................21 Salary Schedule Exhibit A
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Town of Los Gatos and Los Gatos Police Officers Association Comprehensive Memorandum of Understanding
On Salaries, Fringe Benefits and Working Conditions
Preamble
The authorized representatives of the Town of Los Gatos, hereinafter referred to as the "Town" and the authorized representatives of the Town of Los Gatos Police Officers Association hereinafter referred to as "Association" do jointly accept and agree to all the terms and conditions of employment set forth in this comprehensive memorandum of understanding pursuant to Town Resolution 1974-41 of the Town of Los Gatos.
This understanding shall apply to represented employees assigned to those classifications listed on Exhibit A when classifications are created which fall under the representation of POA, this understanding shall also apply.
The terms and conditions of employment set forth in this understanding have been discussed in good faith by the authorized representatives of the Town and the authorized representatives of the Police Officers Association. They agree to recommend acceptance by the employees of all terms and conditions set forth herein. Following said acceptance by the Association, authorized representatives of the Town agree to recommend to the Town Council that all terms and conditions set forth herein be approved by resolution. Upon adoption of said resolution, all terms and conditions so incorporated shall become effective without further action by either party.
Term
The term of this Memorandum of Understanding shall be three years, commencing on October April 1, 20214, and terminating on June 30, 20242027.
Section 1. Employer-Employee Relations
The Association recognizes the existence of Town Resolution 1974-41, and its successor if any, during the term of this MOU. Recognition of any amendments to this resolution does not imply POA has agreed to the changes.
Section 2. Savings Clause
If any provision or the application of any provision of this agreement as implemented should be rendered or declared invalid by any court action or decree or by reasons of any preemptive legislation, the remaining sections of this agreement shall remain in full force and effect for the duration of this agreement Section 3. Payroll Deduction
Any employee may sign and deliver to the Association an authorization for payroll deduction of membership dues. The Town agrees to remit to the Association all monies deducted accompanied by a list of workers for whom such deductions have been made and indicating any changes in personnel from the list previously furnished.
The Association shall certify in writing to the Town any changes in the amount of membership dues. The Town shall not be obligated to put into effect any new, changed, or discontinued deduction until the pay period commencing thirty (30) days or longer after such submission.
The Association shall indemnify and hold harmless the Town against any and all suits, claims, demands, and liabilities that may arise out of, or by reason of, any action or omission of the Town in complying with this Section.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Section 4. Non-Discrimination
The Town and Association agree that all provisions of this agreement shall be applied equally to all employees covered herein without favor or discrimination because of race, religious creed, color, sex (including pregnancy, childbirth, and related medical conditions), age (over 40), gender, gender identity, gender expression, sexual orientation, national origin, ancestry, political or religious affiliation, Association membership or activity on behalf of the Association, marital status, military or veteran status, or physical disability, mental disability, medical condition, or genetic information or any other basis prohibited by applicable federal, State or Town law. Association and Town support equal employment opportunity in hiring and will support all State and Federal regulations regarding equal employment opportunity.
4.1 General Provision regarding the Americans with Disabilities Act (ADA) and the Fair Employment and Housing Act (FEHA)
A. Because the ADA and the FEHA requires accommodations for individuals protected under the Acts, the Association recognizes the Town's obligation to comply with all provisions of the ADA and the FEHA on a caseby-case basis.
B. The Association recognizes that the Town has the legal obligation to meet with the individual employee to be accommodated before any adjustment is made in working conditions. The Association will be notified of these proposed accommodations.
C. Any accommodation provided to an individual protected by the ADA and the FEHA shall not establish a past practice.
Section 5. Salary
5.1 Intent
It is the intent of the Town to maintain salaries and benefits at a level that attracts and retains quality employees. The parties agree that surveys of the wages and benefits of police officers performing comparable work for comparable agencies provide information useful in ensuring that the Town continues to meet this goal.
5.2 Effective Upon Approval
Effective April 1, 2024the first full pay period after Council approval of this MOU, or as soon as practical thereafter, the salary rate for all classifications shall be increased by six and one half two percent (26.5%).
5.3 Effective 20225
Effective the first full pay period in July 20225, the salary rate for all classifications shall be increased by five and onequarter percent (5.25%).
The parties agree that the combined 2022 increases represent a three percent (3%) cost of living adjustment, a market increase of three and fifteen hundredths’ percent (3.15%), and an additional one and one tenths percent (1.1%) to address the passage of time since October 2021.
5.4 Effective 20236
Effective the first full pay period in July 20236, the salary rate for all classifications shall be increased by four three percent (34%).
5.5 One-Time Lump Sum
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, all employees shall receive a one-time non-pensionable lump sum payment of five thousand dollars ($5,000).
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
5.6 Pandemic Related Bonus
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, all employees who worked for the Town in 2021 who are employed at the Town through the last day of the pay period the bonus is paid, will receive a one-time, non-pensionable lump sum payment of $2,500.
Section 6. PERS Benefits
The Town contracts with the California Public Employees’ Retirement System (CalPERS or PERS) to provide Town employees with retirement benefits.
6.1 PERS 3% at 50 Retirement Option Classic Members
For employees that are not “New Members” as defined under Government Code section 7522.04(f), commonly referred to as “Classic Members,”, the Town provides the 3% at 50 option for members of the bargaining unit.
The Town’s contract with CalPERS for the 3% at 50 option also includes the following optional benefits:
▪ Single Highest Year
▪ 1959 Survivor Benefit Level 4
▪ Conversion of Unused Sick Leave to Service Credit
Classic Members contribute 12% towards PERS (3% more than required by statute) in accordance with Government Code section 20516(a).
6.3 PERS 2.7% at 57 Retirement Option for New Member Employees Hired on or After January 1, 2013
For employees hired on or after January 1, 2013, who meet the definition of New Member under Government Code 7522.04(f), the Town provides the 2.7% at 57 retirement benefit.
The Town’s contract with CalPERS for the 2.7% at 57 option also includes the following optional benefits:
• 36-month final average compensation (Gov’t Code 20037) • 1959 Survivor Benefit Level 4
• Conversion of Unused Sick Leave to Service Credit
New Members contribute toward CalPERS an amount that is equal to one half (1/2) the normal cost of their CalPERS pension as determined annually by CalPERS, or the current contribution rate of similarly situated employees, whichever is greater (Government Code 7522.30(c)).
Section 7. Education Incentive Pay
7.1 Four-Year Degree Incentive Pay
The Town shall pay two and one-half percent (2.5%) of base salary to any member who possesses a four-year degree that enhances their ability to do their job. Employees must submit proof of the four-year degree to Human Resources in order to be eligible for the payment.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
7.2 Two-Year Degree Incentive Pay
For employees hired prior to June 30, 2008, the Town shall pay two and one-half percent (2.5%) of base salary to any member who possesses a two-year degree or meets the minimum requirements to obtain an Associates of Arts Degree that enhances their ability to do their job. Employees must submit proof of the two-year degree or completion of the minimum requirements to obtain an Associates of Arts Degree in a related field to Human Resources in order to be eligible for the payment. The incentive pay for a two-year degree does not stack with incentive pay for a four-year degree; the maximum education incentive pay any member may receive under this section 7 is two and one-half percent (2.5%) of base salary
7.3 Commencement of Educational Incentive Pay
Educational Incentive Pay is effective the first full pay period after the employee provides Human Resources with sufficient proof that the employee has obtained the requisite degree or education for Educational Incentive Pay.
7.4 Re-Opener
If the law changes on the education requirements for California police officers, the Town has the right to reopen this section 7.
7.5 CalPERS
The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such to CalPERS, pursuant to Title 2 CCR Section 571(a)(2) and 571.1(b)(2) as Education Incentive.
Section 8. POST Certificate Pay
Qualified employees shall receive one of the following payment amounts in accordance with Exhibit A:
A. Employees in their represented classifications who have been awarded an Intermediate POST Certificate: An additional 5% of base salary.
B. Employees in their represented classifications who have been awarded an Advanced POST Certificate: An additional 2.5% of base salary for a total of 7.5%.
C. The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such to CalPERS, pursuant to Title 2 CCR Section 571(a)(2) and 571.1(b)(2) as Education Incentive.
B.
Section 9. Special Pays
Officers are limited to one special assignment pay or canine pay. Officers who qualify for bilingual pay may receive bilingual pay in addition to a special assignment pay or canine.
9.1 Special Assignment Pay
Town shall provide a 5% special assignment pay to Association represented personnel who are routinely and consistently assigned as follows:
9.1.1 Motorcycle Patrol Premium- for unit members who operate and/or patrol on motorcycle.
9.1.2
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
School Resource Officer Duty Pay – For unit members who are assigned to School Resource Officer duty.
9.1.3 Detective Division Premium- for unit members who are routinely assigned to a detective or investigative division.
9.1.4 Police Administrative Officer-for unit members who are assigned to police administration to provide support for the Police Chief and Command Staff in the operation of the Police Department.
Assignment for special pay purposes shall be done using Town Personnel Action Forms.
Association represented personnel removed from specialty positions on a temporary basis for departmental purposes and through no fault or request of their own shall continue to receive specialty pay for a maximum of 30 calendar days.
The parties agree that to the extent permitted by law, special assignment payspremiums are special compensation and shall be reported as such to pensionable as determined by CalPERS, pursuant to Title 2 CCR 571(a)(4) and 571.1(b)(3) as Special Assignment Pay.
9.2 Bilingual Pay
The Town will pay an additional 2.5% above base pay for employees who are routinely and consistently assigned to communicate in languages other than English. Bilingual pay will be for Spanish, Russian, Arabic, Chinese, Vietnamese and any other language designated by the Chief of Police. The Town will determine the qualifying criteria including the test and the application to the specific job assignment.
The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such to CalPERS, pursuant to Title 2 CCR Section 571(a)(4) and 571.1(b)(3) as Bilingual Premium.
9.3 Canine Pay
Officers who are routinely and consistently assigned to handle, train and board a canine in accordance with this section are eligible for Canine Officer/Animal Premium. Officers assigned to the canine unit are required to care for, train, groom, feed, and bathe their assigned dog. The parties agree that two hours per week is a reasonable amount of time to care for the canine. The Town compensates Canine officers a total of five (5) hours per week for additional time spent caring for the canine. Two (2) hours of this additional time is outside of the regular shift. The remaining three (3) hours is provided as release time.
Call-back as defined in the MOU shall not apply for the purposes of caring for the dog. Compensation provided during the additional paid time and release time is mutually acknowledged to compensate for additional time required to care for, train, groom, feed, and bathe the assigned canine.
9.3.1 Canine Pay Premium
Compensation for the 2 hours outside of the regular shift is paid as a 5% premium on all hours worked.
The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such to CalPERS, pursuant to Title 2 CCR 571(a)(4) and 571.1(b)(3) as Canine Officer / Animal Premium.
9.3.2 Canine Release Time
Canine Officers on a 4-10 schedule shall be released in a paid capacity for 0.75 hours prior to the “normal” conclusion of each regularly scheduled shift (4 shifts per week equaling 3 hours per week) for the normal care of the canine, including but not limited to training, grooming, feeding, bathing, and routine veterinarian care.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Canine Officers on a 12-hour schedule shall be released in a paid capacity for 1.0 hours prior to the “normal” conclusion of each regularly scheduled shift (3 shifts per week equaling 3 hours per week) for the normal care of the canine, including but not limited to training, grooming, feeding, bathing, and routine veterinarian care.
In the event that a Canine Officer is not released in sufficient time prior to the conclusion of his or her shift, the officer will be paid for additional time after the end of shift to compensate them for 0.75 or 1.0 hours of Canine care time as appropriate. The Town recognizes that this may result in overtime.
9.3.3 Commute Time with Canine
Commute time with the canine shall not be considered working time. If there is an event requiring emergency veterinarian care, travel to the veterinarian will be compensable work time.
9.4 Field Training Officer Training Premium
In addition to the above special pays, officers assigned by the Chief of Police as Field Training Officers shall also receive the 5% incentive whenever providing training to a Department member for which a training observation report is required or when completing special assignments directly related to the Field Training Officer Program with prior approval of the Chief of Police. Attendance at FTO meetings, training provided at briefings, or other training provided in conjunction with the Department’s annual Advanced Officer Training or other on-going general training to Department members does not qualify for the 5% incentive.
The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such to CalPERS, pursuant to Title 2 CCR Section 571(a)(4) and 571.1(b)(3) as Training Premium.
9.5 Trailing Canine Pay
Officers that personally own a certified and properly equipped Trailing Canine and have been identified as a Department Trailing Canine Handler will provide the Los Gatos-Monte Sereno Police Department with the use of the Trailing Canine when tracking, trailing and related canine services are required. Deployment of the Trailing Canine Team may be requested for location of missing persons, fugitive apprehension and evidence recovery. With the approval of the Chief of Police, the Trailing Canine Team may also be deployed to other jurisdictions. Trailing Canine Handlers are responsible for the maintenance and care of the canine, in addition to recurring in-service training, at no cost to the Town.
9.5.1 Trailing Canine Premium
Officers will receive a five percent (5%) specialty pay premium only during approved deployment and use of services and will submit an approved time sheet noting the specialty pay during the pay period in which the services were rendered. The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such to CalPERS, pursuant to Title 2 CCR 571(a)(4) and 571.1(b)(3) as Canine Officer / Animal Premium.
Special assignment premiums are pensionable as determined by CaIPERS.
The Town will reimburse Officers up to, but not to exceed, $150.00 per month premium for private pet insurance.
Officers will submit receipts for payment on a quarterly basis to Finance — Accounts Payable for reimbursement. The Town will also reimburse Officers for insurance deductible payments up to $250.00 per injury/illness incurred to canine while deployed for use on Town assignments.
9.5.2 Trailing Canine Training
Trailing Canine Handlers will maintain required recurring in-service training and associated records, within the scope of policies and procedures of the Los Gatos-Monte Sereno Police Department. Officers will be reimbursed for annual canine recertification course registration fees not to exceed $800.00 per year. Officers are responsible for cost of travel, lodging, and per-diem related to the annual recertification course.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Up to 40-hours of paid release time annually will be allowed to attend re-certification course. The approved recertification course constitutes scheduled Department training for which the release time will be honored.
9.6 Therapy Canine Pay
The parties agree that one half-hour per day, outside of their regularly-scheduled work day, is a reasonable amount of time for officers assigned to handle a canine as part of the Department’s Therapy Canine Program to care for their canines off duty. Therefore, effective the first full pay period after July 1, 2024, an officer assigned to handle a canine under the Department’s Therapy Canine Program shall receive one half hour of pay per day, totaling seven hours per pay period, at an hourly rate of one and one half times the state minimum wage. As of January 1, 2024, the California state minimum wage is $16.00 per hour, which would equate to a therapy canine payment of one hundred and sixty eight dollars ($168) per pay period.
9.6 Posting for Special Assignments
Any opening for a special assignment shall be posted for a minimum of two weeks, unless extraordinary circumstances warrant otherwise.
Section 10. Acting Sergeant Pay
Police Officers working as acting supervisors shall be compensated at Step "4" of the Sergeant’s rate of pay. Town shall periodically review the actual time use of acting supervisor designations in order to determine the necessity of additional permanent supervisory personnel.
The parties agree that to the extent permitted by law, this is special compensation for “Classics” only and shall be reported as such to CalPERS, pursuant to Title 2 CCR Section 571(a)(3) as Temporary Upgrade Pay.
Section 11. Reimbursement of Expenses
The Town shall pay claims for reimbursement within 30 days following the complete and accurate submission of claims as approved by the Finance Director.
Section 12. Tuition Reimbursement
Town will reimburse 100% of the cost of books, university/school fees (except parking) and tuition. Tuition and school fees shall be reimbursed up to the full-time rates of San Jose State University at applicable Undergraduate or Graduate rates per school term. The maximum reimbursement per employee per fiscal year is equivalent to two (2) semesters.
The reimbursement shall be only for courses that are directly related to the employee’s position as determined by the Town Manager, including general education courses that are generally related to attainment of a job-related degree or certification. General education courses not generally related to the employee’s position will not be eligible for reimbursement. Reimbursement shall be taxed pursuant to the State and Federal Regulations.
Application for Tuition Reimbursement shall be made to the Town before the course begins. Prior to reimbursement of costs, all course work must be completed with a passing grade of “C” or equivalent when numerical score or pass/fail is given. Individuals requesting reimbursement must currently be employed by the Town to be eligible for reimbursement.
Any employee who terminates employment with the Town within one year from the completion of a class or classes, for which tuition reimbursement was paid, shall refund all tuition paid under this provision, unless required to attend by the appointing authority.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Section 13. Health and Welfare Benefits and Rate of Town Contribution The Town contracts with CalPERS for the purpose of providing employees and their eligible dependents with medical insurance benefits. The Town’s maximum monthly contribution for each eligible active employee shall be equal to the minimum employer contribution required under Public Employees’ Medical and Hospital Care Act (PEMHCA), currently $149 per month, as may be adjusted by CalPERS from year to year.
13.1 Cafeteria Plan
During the term of the MOU, the Town agrees to maintain a Cafeteria Plan, pursuant to Section 125 of the Internal Revenue Code, for the purpose of providing eligible active employees with access to various health and welfare benefits. Benefits available through the Cafeteria Plan include medical insurance, dental insurance, vision insurance and life insurance benefits.
13.2 Dental
Employees choosing this option instead of Cash-in-Lieu will be provided 100% of the Delta Dental DPO Plan premium less a $15.00 employee contribution. If the premium cost of the dental plan exceeds the Town contribution, the employee shall pay through payroll deductions the difference between the monthly premium and the amount contributed by the Town. The Town will pay 100% of the premium for employees choosing to participate in the DeltaCare USA Plan.
13.3 Medical
The Town will provide active employees with a medical allowance equal to 100% of the cost of the Kaiser Bay Area Medical Insurance Program premium offered by the Public Employees’ Retirement System Health Benefit Medical Program at the Employee Only level of participation. For dependents, the Town will pay 90% of the difference between Kaiser Employee Only and Kaiser level of participation (Employee Plus One or Employee Family, depending on family status). If the employee chooses medical coverage under a program more expensive than Kaiser Bay Area, the employee will pay the difference between the Town-provided medical allowance and the cost of the more expensive program through payroll deduction.
The Town’s contribution towards medical insurance set forth in Section 13 (the PEMHCA minimum) will be deducted from the amount of contribution provided by this Section.
13.4 Vision
The Town shall pay for employee-only coverage under the Town’s Vision Service Plan (VSP). Employees may enroll eligible dependents at their own cost.
13.5 Cash-In-Lieu Plan
Employees have the option of choosing all available coverages or, upon providing proof of other medical coverage, may choose to opt out of the Town’s coverage and be provided with cash-in-lieu.
Employees who choose to receive the cash-in-lieu must first show proof of alternative minimum essential medical coverage for the employee and employee’s tax family (individuals for whom the employee expects to claim a personal exemption deduction). Individual coverage, and individual coverage from Covered California does not qualify as alternative minimum essential coverage under this section. Employees must provide reasonable evidence of alternative minimum essential coverage each plan year, during open enrollment. The Town will not make the cash payment if it knows or has reason to know that the employee or tax family does not have alternative minimum essential coverage. Any amount received in cash is taxable. Employees choosing to receive taxable cash will have the option of receiving it in two equal amounts in December and June, or the first two paychecks of each month (24 times a year).
• For employees hired before January 1, 2006, the Town contribution to the Cash-In-Lieu program will be equal to Nine Hundred and Twenty-two Dollars ($922) per month.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
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• For employees hired after January 1, 2006, the Town contribution to the Cash-In-Lieu program will be Four Hundred Dollars ($400) per month.
The parties agree to meet and confer at the Town’s request on any changes that are within the mandatory scope of bargaining related to its Town sponsored Medical Insurance and Cash In-Lieu Plan that may be related to the compliance and implementation of the Affordable Care Act or the Fair Labor Standards Act as it relates to the regular rate of pay for overtime.
13.6 Supplemental Health and Welfare Benefits
A. Life: Coverage of $50,000 plus $50,000 accidental death: Town to pay for premium. Additional life insurance may be purchased by the employee equal to once or twice the employee's base salary, not to exceed $200,000.
B. Disability: Short Term Disability Policy effective 8th calendar day; coverage of 60% of weekly earnings up to maximum of $1,300/week for 13 weeks. Long Term Disability benefits begin on the 91st day of disability; coverage of 60% of monthly earnings up to a maximum of $6,000/month.
C. Employee Assistance Program: Premiums shall be paid by the Town.
D. Unemployment Insurance: Premiums shall be paid by the Town to provide State coverage.
Section 14. Retiree Health
The Town provides retiree health benefits in accordance with the PEMHCA for employees who qualify as eligible PERS retirees who receive a PERS retirement allowance and are PEMHCA annuitants entitled to such benefits under the PEMHCA.
The Town’s maximum monthly contribution for each eligible annuitant shall be equal to the minimum employer contribution required under the PEMHCA, currently $149 per month, as may be adjusted by CalPERS from year to year.
The provisions of PEMHCA will govern medical insurance coverage for annuitants.
14.1 Retiree Health Benefit for Eligible Retirees Hired on or Before October 1, 2018 An employee hired on or prior to October 1, 2018, or provided with a final offer confirmation of employment prior to October 1, 2018, is eligible for Health Reimbursement Account (HRA) retiree health benefits in accordance with this Section.
14.1.1 The employee retired from the Town taking a service or disability retirement from CalPERS as a retiree receiving a PERS retirement allowance and is a PEMHCA annuitant; and,
14.1.2 The employee must actually draw a CalPERS pension within ninety (90) days of separation from the Town, provided the employee remains with the Town’s health plan through COBRA.
14.1.3 The amount of the supplemental retiree health benefit allowance will be equal to 100% of the cost of the premium for Kaiser Bay Area Retiree Only and 90% of the difference between the Kaiser Employee Only and Kaiser level of participation (Employee Plus One or Employee Family, depending on family status). The Town will pay $ $1,947.16 per month towards a Retiree Plus One or More plan, as of the 2022 plan year. This amount will increase by $100.00 each
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
year until it is equal to the active employee contribution.
14.1.4 The Town’s contribution towards retiree health insurance set forth in Section 14 (the PEMHCA minimum) will be deducted from the amount of contribution provided by this Section (14.1).
14.1.5 Employees retiring on or after February 1, 2016 and upon becoming eligible for Medicare will cease to receive any retiree health benefit allowance under this Section (14.1) and will become eligible for Supplemental Medicare equal to the cost of Kaiser Senior Advantage Bay Area Medicare rates up to a maximum of 100% Retiree Only, 90% for Retiree Plus One or 90% for Retiree Plus One or More less the amount of the employee contribution provided under Section 14 (the PEMHCA minimum). This benefit is available to the eligible retired employee only after he or she has reached the age of 65 and is Medicare eligible or as otherwise specified by law.
14.1.6 The benefits described by this Section (14.1) will be provided to annuitants through CalPERS by means of a Health Reimbursement Account (HRA).
14.2 Retiree Health Benefit for Eligible Retirees Hired After October 1, 2018 The Association will establish participation in a retiree medical plan administered by the PORAC Retiree Medical Trust (PORAC RMT). This agreement to participate will apply to every employee, represented by the Association, hired by the Town after October 1, 2018. The cost of establishing and maintaining the Trust shall be at no cost to the Town, including administrative fees. The Town is not a party to the Trust, aside from transferring funds, and has no obligations to the management, regulatory compliance or performance of the trust. In the event the Trust becomes insolvent or unable to pay, the Town has no financial obligation to the Trust or the contributing members of the Association.
The Town will transfer a monthly employee contribution of one hundred dollars ($100.00) for each Association member deducted in fifty dollars ($50.00) increments from the first two paychecks of each month (24 times per year).
These contributions shall be on a pre-tax basis if permitted by law. As each member will contribute the same predetermined dollar amount, no member election forms designating the amount will be needed, allowed or requested; and there shall be no member election available to take the member contribution amount in cash, or to determine the member contribution amount. These contributions shall be included as salary for purpose of calculating retirement benefits as determined by the California Public Employees Retirement System (CaIPERS).
Effective the first full pay period in July 2024, in addition to the employee contributions set forth above, the Town shall contribute twenty five dollars ($25) per month to the PORAC Retiree Medical Plan for all members hired after October 1, 2018. Effective the first full pay period in July 2025, the Town contribution shall increase to fifty dollars ($50) per month.
The Town will comply with reasonable procedures set by the Trust Office with regard to reporting and depositing the required contributions set forth above, typically involving providing the Trust Office with the name, social security number and amount paid for each Association member. In the event that the reporting requirement of the Trust requires reporting beyond that which the Town typically provides, the Town may require the Association to pay for any costs related to programing or producing such reports. Prior to engaging in any activity that could result in such an expense, the Town will secure the Association's authorization The Association agrees to defend, indemnify, and hold the Town harmless from any liabilities of any nature which may arise as a result of the operating of the PORAC RMT, except for the obligation of the Town to make and report the nonPage 128 ITEM NO. 11.
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elective transfer of Association member contributions as described above.
The monies contributed to the Trust fund shall only be used for retiree health insurance premiums or health care expenses, as allowed by law. There shall be no Association member election/option available to take such amount in unrestricted cash.
The purpose of this Trust shall be to provide for retiree health care expense reimbursement benefits. The Trust shall be and remain separate and apart from any Town health insurance funding program, unless changed by mutual written agreement of the parties. The contributions set forth above, unless otherwise dictated by law or rules set forth by CalPERS, shall be included as salary for purpose of calculating pension benefits.
The Town hereby acknowledges receipt of the Trust Agreement governing the Trust. The Town will cooperate with the Trust in allowing a payroll audit only for the purpose of ascertaining if the proper number of contributions have been made.
Section 15. Uniforms
The Town will provide a full set of uniforms and equipment (per Department Uniform Policy) to each new employee.
Employees are expected to maintain fitting uniforms, including a maintained, fitting Class A uniform. The Town will replace authorized uniform items damaged in the performance of duty as approved by the Chief of Police.
The Town will pay bargaining unit employees a uniform allowance of One Hundred Fifteen Dollars ($115) per month (paid the first two pay periods of each month) for the repair, maintenance, and replacement of uniforms.
The parties agree that to the extent permitted by law, this is special compensation for “Classic Members” only and shall be reported as such to CalPERS, pursuant to Title 2 CCR Section 571(a)(5) as Uniform Allowance.
Section 16. Mileage Reimbursement
If no Town vehicle is available, Eemployees may use using personal vehicles on official Town business with the prior written or electronic approval of their supervisor. In the event an employee is approved to use their personal vehicle on official Town business, the employee shall be reimbursed at the mileage rate established by the I.R.S. Private vehicles used for Town business shall comply with the California Vehicle Code.
Mileage reimbursement requests must be submitted within 30 days of the date accrued.
Section 17. Payroll Periods
The Town and Association agree to the continuation of a biweekly payroll period. The following conditions are in effect:
A. Employee pay shall not be withheld more than seven (7) calendar days from the end of the payroll period, however, a maximum of two days overtime may appear on the next payroll period if it is worked following the submittal of time sheets, or during a pay period with a Town holiday which requires early submittal of time sheets and early distribution (before Friday) of pay checks. This may also occur at the end of the fiscal or calendar year.
B. The Town shall provide an optional electronic check deposit system for use by employees.
Section 18. Paychecks
Payroll deductions and accruals shall appear on all paychecks.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Section 19. Deferred Compensation
The Town shall continue to offer a program of deferred compensation to its members in the represented classifications. The Town makes no representation on the merit of the plan nor any of the investment products or instruments which may be offered by the plan. The responsibility for evaluating the options within the plan is the responsibility of the individual participant. The Town shall not be obligated to offer more than one Deferred Compensation carrier.
Section 20. Overtime
Overtime is time worked beyond any scheduled work shift.
All overtime worked shall be compensated at time and one-half. The employee may choose whether overtime shall be paid in cash or accumulated as Compensatory Time Off (CTO), subject to a maximum accumulated CTO of one hundred and forty (140) hours.
On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to 40 hours of CTO twice per year (paid at the regular rate of pay in whole hour increments) which will be earned in the following calendar year. In the first full pay period of June and December in the following year, the employee will receive cash for the amount of CTO the employee elected to cash out in the prior year.
However, if the employee’s CTO balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of the CTO the employee has accrued at the time of the cash out.
Annual review of the impact of those changes will occur to determine if there is any adverse impact on scheduling.
For private duty contracts, officers may only receive pay.
Overtime is to be approved by a supervisor as soon as practical. Overtime payroll sheets are the responsibility of the employee to have approved and forwarded to the division commander by the appropriate payroll deadline.
Section 21. Duty Extension
Compensation is made for actual time worked and shall be computed in minimum quarter-hour blocks.
Personnel whose work hours would normally terminate within one hour or less from the time of the scheduled court, meeting, or training commencement will be compensated from the termination of their normal work hour through the termination of the scheduled event.
Duty extension is paid at time and one half.
Section 22. Call Back
Requests that personnel return to duty, attend mandatory meetings, court appearances and training classes are call backs and compensated at a 3-hour minimum or actual time, whichever is greater. Mandatory meetings where a minimum of two weeks’ notice has been given are not a call back and will be compensated at a one (1) hour minimum or actual time worked whichever is greater.
Call backs for officers assigned to Watch I (midnight shift) who have worked the night before shall receive a minimum of 4 hours.
Personnel are considered on duty for the duration of a call back.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Court appearances-hearings-depositions: Required off duty attendance at judicial or administrative hearings is compensated at a 3-hour minimum (4 hours for midnight if shift worked the night before appearance), or actual time, whichever is greater. Should there be more than one appearance, including separate court locations, within the 3- or 4-hour time period, only one minimum will be granted.
Call back is paid at time and one half.
Section 23. Vacation Schedule
The following vacation schedule shall apply to all employees:
Months of Employment /
Experience
Accrual
Days Per Year
Accrual
Hours Per Pay Period
Accrual
Hours Per Year
0 to 36 10 3.08 80
37 to 60 15 4.62 120
61 to 120 20 6.46 160
121 to 180 23 7.08 184
181 months 25 7.70 200
Effective April 1, 2024, the individual rate of accrual for all members and future members shall be increased to account for total years of experience working in a sworn peace officer position that requires possession of a basic POST certificate.
Maximum accrual of vacation hours shall be 344 hours.
On or before the pay period which includes December 15 of each calendar year, an employee may make an irrevocable election to cash out up to 80 hours of vacation twice per year (in whole hour increments) which will be earned in the following calendar year. In the first full pay period of June and December in the following year, the employee will receive cash for the amount of vacation the employee irrevocably elected to cash out in the prior year. However, if the employee’s vacation balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of vacation the employee has accrued at the time of the cash out.
Section 24. Vacation and Compensatory Time Off Cash-out Employees who terminate from Town service shall have all accrued vacation and compensatory time off cashed-out.
This will terminate their status as an employee of the Town.
Section 25. Shift and Vacation Selection Procedures
Patrol shift selection and vacation bidding shall commence approximately ten weeks prior to shift change, unless circumstances require otherwise.
The Town agrees to continue efforts to transition to an online mechanism for shift and vacation selection.
Due to the Association’s concerns regarding changes to the vacation selection procedure that arose due to sworn staffing shortages and its effect on officer access to vacation, the parties agree to meet to discuss shift and vacation selection procedures during the month of July 2022. Upon request by the Union, the parties will promptly meet and confer on the limited issue of the Department’s vacation selection procedure. Any changes to the existing vacation selection procedure will be by mutual agreement.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Section 26. Holidays and Holiday Pay
The following holidays will be observed by non-uniform personnel:
• January 1.
• the third Monday in January.
• the third Monday in February.
• the last Monday in May.
• Juneteenth.
• July 4.
• the first Monday in September.
• Thanksgiving Day.
• the Friday following Thanksgiving Day.
• December 25.
• Four hours on December 24 and December 31
• Every day declared a Holiday by the Mayor as a result of a national holiday declared by the President or State Governor.
Holidays which fall on Saturday shall be observed on the Friday prior and holidays which fall on Sunday shall be observed on the following Monday.
Uniform personnel assigned to shift work (Patrol and Traffic) shall receive compensation in-lieu of holiday time off equal to eighty (80) hours of base pay annually. Employees shall have the option of taking Holiday leave off equal to eighty hours (80) or receive in-lieu compensation. If the employee selects to receive in-lieu compensation, forty (40) hours of holiday pay will be received in the last payroll of November and the second forty (40) hours will be received in the last payroll of May and will be included on the regular check. In-lieu holiday pay shall cease whenever an employee is reassigned to other than shift work. The employee shall observe holidays as described above. In the event that an additional holiday is observed by the Town during the term of this agreement, the in-lieu compensation shall be increased by the additional hours holiday time made available to non-uniform personnel (the language of this paragraph becomes null and void effective January 1, 2019). in the amount of 4.4% of base salary per pay period.
The parties agree that to the extent permitted by law, this is special compensation and shall be reported as such to CalPERS, pursuant to Title 2 CCR Section 571(a)(5) and 571.1(b)(4) as Holiday Pay.
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, in recognition of Juneteenth, holiday in-lieu pay will be increased by 0.4%, to total 4.4%.
Effective the first full pay period of July 2022 or the first full pay period after Council approval of the MOU, whichever is later, employees will receive a one-time, non-pensionable lump sum payment of one thousand dollars ($1,000) for foregoing the Juneteenth holiday prior to 2023.
Section 27. Personal Leave
Employees shall have the option of either taking personal leave off equal to twenty-four (24) hours of base pay annually or receiving in-lieu compensation equal to same if the personal leave is not used by the end of November.
Employees may use personal leave hours during the month of December; however, employees desiring to receive compensation for those hours shall do so in conjunction with the annual cash out in November.
Section 28. Sick Leave
Accumulation rate shall be 8 hours per month (3.70 hours per pay period) with a maximum accrual of 1180 hours. The Town may require association represented employees to provide a doctor statement of proof of illness for any use of sick leave beyond one working day.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Section 29. Sick Leave Cash-Out Program
29.1 Annual Sick Leave Cash-Out for Employees Hired Prior to October 1, 2018 On or before the pay period which includes December 15 of each calendar year, employees eligible to cash out under this section may make an irrevocable election to cash out up to 40 hours of their accumulated sick leave at 50% of current salary two times per year (in whole hour increments) which will be earned in the following calendar year. In the first full pay period of June and December in the following year, the employee will receive cash for the amount of sick leave the employee irrevocably elected to cash out in the prior year. However, if the employee’s sick leave balance is less than the amount the employee elected to cash out (in the prior calendar year) the employee will receive cash for the amount of sick leave the employee has accrued at the time of the cash out.
29.2 Sick Leave Cash-Out Upon Termination for Employees Hired Prior to October 1, 2018
Employees who terminate employment with the Town for any reason other than retirement or disciplinary termination, may cash-out their accumulated sick leave as follows:
Months of Employment
1-59 months 25%
60-119 months 37.5%
120 months or more 50%
In order to be eligible for the sick leave cash-out program, an employee must have a sick leave accrual balance of at least 200 hours at the time of termination.
29.3 Unused Sick Leave Upon Retirement
Upon retirement, eligible employees may choose from the following options:
1. Eligible employees may convert unused sick time to service credit in accordance with provisions established by CalPERS.
2. Sick Leave Cash Out for Employees Hired Prior to October 1, 2018 All eligible employees who retire with a sick leave accrual balance of at least 200 hours may elect to be paid in cash in accordance with the same provisions as Section 28.2 Sick Leave Cash-Out Upon Termination.
3. Sick Leave Conversion for Employees Hired Prior to January 1, 2009 All employees who retire with a sick leave accrual balance of at least 200 hours may convert 100% of this accumulated sick leave to a dollar equivalent at their hourly rate of pay at the time of retirement. This amount shall be held in an account. The employee’s portion of the medical insurance premium payment will be withheld from their monthly retirement payment by PERS.
The Town agrees to pay the retiree quarterly in advance on the first pay period of January, April, July, and October of each year after retirement. The first payment will be pro-rated to the nearest quarter.
Retiree’s (including dependents of the retiree) portion of medical payments will be paid from this account by the Town until all monies are depleted from the account.
This account will not accrue interest and will not be paid in cash to the retiree or any beneficiaries. The retirees shall be responsible for 100% of their share of future medical insurance premiums once the account is exhausted.
ITEM NO. 11.
Town of Los Gatos Los Gatos Police Officers’ Association October April 1, 20214 – June 30, 20247
12409313.1 LO007-016
Section 30. Military Leave
Military leave and benefits shall be granted in accordance with State and Federal Law, including the continuation of employee salary and benefits if applicable.
Generally, employees with more than one year service will receive up to thirty (30) calendar days of paid military leave annually while engaged in military duty ordered for purposes of active military training.
Section 31. Bereavement/Compassion Leave
Up to 40 hours paid leave upon the death of a family member. For purposes of this section, family member is defined as available per occurrence – use limited to spouse, domestic partner, parent, parent in law, grandparent, grandparent in law, child, grandchild, sibling or or sibling in law.by blood or marriage.
Days of bereavement leave need not be consecutive but shall be completed within three months of the date of death of the family member.
If requested by the Town, the employee shall provide documentation of the death of the family member within 30 days of the first day of the leave. Appropriate documentation for this purpose is defined in California Government Code section 12945.7(f).
It is recognized that bereavement/compassion leave is separate from employee’s accumulated sick leave, vacation or CTO.
Section 32. Leave Without Pay
Leave without pay shall be subject to approval of the Chief of Police and the Town Manager.
An employee who is on leave without pay shall not earn any employment benefits (including, but not limited to, such benefits as vacation leave, medical benefits, sick leave, retirement, credit for time employed or seniority entitlement of any kind) for the duration of such leave.
Vacation or sick leave or time worked shall not be used intermittently during an extended leave to interrupt a determination that an employee is on leave without pay.
The Town may, at its discretion, approve leave beyond the specific amount provided above.
Section 33. Accrual of Benefits
Benefits shall not accrue to employees on unauthorized leave, suspension without pay, or leave without pay.
Section 34. Workers’ Compensation
Employees shall be provided benefits in compliance with State law.
Section 35. Jury Duty
Employee salary and benefits shall be continued during jury duty; employee turns over to the Town any compensation from the courts or other source of jury duty on regular workdays.