Los Gatos City Council
May 21, 2024

ITEM NO. 7.
14 EXHIBIT A
Fee Summary
Pinehurst Community Garden Design (CIP No. 831-4610)
Task number Task Name Lump Sum Fee
1 Project Management $ 3,038
2 Site Analysis $ 1,355
2A Topographic & Boundary Survey $ 3,080
2B Consulting Certified Arborist Services $ 1,650
2C Supplemental Soil Toxicology Analysis $ 11,000
3 Community Engagement $ 12,125
4 Conceptual Design and 35% Design $ 32,995
DC Direct Costs, maximum not-to-exceed $ 850
PROJECT TOTAL $ 66,093.00
Items not included in this current contract
Optional Task A Pinehurst Community Garden – Risk Assessment and Statistical Analysis
$ 44,000
Optional Task B Illustrated Perspective Renderings, fee per rendering $ 4,000 Fees shown include prime consultant management fees of subconsultants.

Fee Summary
Lynn Avenue Pedestrian Path Design (CIP No. 832-4510)
Task number Task Name Lump Sum Fee
1 Project Management $ 3038
2 Site Analysis $ 1195
2A Topographic & Boundary Survey $ 3630
2B Consulting Certified Arborist Services $ 1650
3 Community Engagement $ 12,125
4 Conceptual Design and 35% Design $ 32,995
DC Direct Costs, maximum not-to-exceed $ 500
PROJECT TOTAL $ 55,133.00
Items not included in this current contract
Optional Task B Illustrated Perspective Renderings, fee per rendering $ 4,000 Optional Task C Master Plan design report $ 10,000
Fees shown include prime consultant management fees of subconsultants.

DocuSign Envelope ID: 8B0B8C71-E35A-49CB-BC22-3EA56BC03493

ITEM NO. 7.
15 EXHIBIT A
Schedule

1. Project Start-up / Project Management
Project start date anticipated in July 2023. Start-up tasks duration of (6) weeks. Project management tasks continue throughout project.

Provide regular updates to the Town’s project manager, including a coordination meeting with Town and other agenciesinvolved, meeting agendas and minutes. Conduct field visits and site analysis as well as reviewing project existing documents to fully understand project background and to develop a work plan.

2. Topo Survey and Soil Analysis
Allow (1) month, Concurrently withTask 1. Start July 2023

3. Community Engagement
Allow (3) months. Concurrently withTask 4. Start September 2023 Assistance in outreach efforts; facilitation of community meetings (both in-person and video); presentation of design concepts and graphics to the public.

4. Conceptual Design Options
4A . Conceptual Design Options:

Allow (1) month. Start September 2023
Comment and Feedback Turnaround
Allow (2) weeks for comments and feedback turnaround
Document Revisions after Commentsfrom Community andTown Parks Commission Allow (2) weeks for comments and feedback turnaround
4B. 35% Design
Allow (10) weeks. Start January 2024 Design
Package Submittal
Comment and FeedbackTurnaround
Allow (2) weeks for comments and feedback turnaround
Document Revisions after Commentsfrom Community andTown Parks Commission Allow (2) weeks for comments and feedback turnaround

5. 100% Project Completion
April 2024
DocuSign Envelope ID: 8B0B8C71-E35A-49CB-BC22-3EA56BC03493

ITEM NO. 7.

Dillingham Associates
Agreement for Consultant Services EXHIBIT B
Fee Summary
Pinehurst Community Garden Design (CIP No. 831-4610)
Task number Task Name Lump Sum Fee
1 Project Management $ 3,038
2 Site Analysis $ 1,355
2A Topographic & Boundary Survey $ 3,080
2B Consulting Certified Arborist Services $ 1,465
2C Supplemental Soil Toxicology Analysis $ 13,200
3 Community Engagement $ 12,125
4 Conceptual Design and 35% Design $ 32,995
LUMP SUM TOTAL $ 67,258
Direct Costs, maximum not-to-exceed $ 850
TOTAL PROJECT FEE $ 68,108
Items not included in this current contract
Optional Task A Pinehurst Community Garden – Risk Assessment and Statistical Analysis
$ 44,000
Optional Task B Illustrated Perspective Renderings, fee per rendering $ 4,000 Fee Summary
Lynn Avenue Pedestrian Path Design (CIP No. 832-4510)
Task number Task Name Lump Sum Fee
1 Project Management $ 3,038
2 Site Analysis $ 1,195
2A Topographic & Boundary Survey $ 3,630
2B Consulting Certified Arborist Services $ 1,465
3 Community Engagement $ 12,125
4 Conceptual Design and 35% Design $ 32,995
LUMP SUM TOTAL $ 54,448
Direct Costs, maximum not-to-exceed $ 500
TOTAL PROJECT FEE $ 54,948
Items not included in this current contract
Optional Task B Illustrated Perspective Renderings, fee per rendering $ 4,000 Optional Task C Master Plan design report $ 10,000
All fees shown include prime consultant management fees of subconsultants.

DocuSign Envelope ID: 8B0B8C71-E35A-49CB-BC22-3EA56BC03493

ITEM NO. 7.

Dillingham Associates
Agreement for Consultant Services

AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT is dated for identification on the 20th day of June 2023 by and between TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and Dillingham Associates (“Consultant”), identified as an Individual/Sole Proprietor and whose address is 2927 Newbury Street, Berkeley, CA 94703. This Agreement is made with reference to the following facts.

I. RECITALS

1.1 The Town desires to engage Consultant for the Preliminary Design Services for the Pinehurst Community Garden (CIP No. 831-4610) and Lynne Avenue Pedestrian Path Design (CIP No. 832-4510).

1.2 The Consultant represents and affirms that it is willing to perform the desired work pursuant to this Agreement.

1.3 Consultant warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement.

Consultant acknowledges Town has relied upon these warranties to retain Consultant.

II. AGREEMENTS

2.1 Scope of Services. Consultant shall provide services as described in that certain proposal sent to the Town on June 2, 2023, which is hereby incorporated by reference and attached as Exhibit A.

2.2 Term and Time of Performance. This contract will remain in effect upon execution to June 30, 2024. Consultant shall perform the services described in this agreement as described in Exhibit A.

2.3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant 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. Consultant shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.

2.5 Information/Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant under this Agreement are the Town’s property and shall be delivered to the Town upon the completion of Consultant's services or at the Town's written request. All reports, information, data, and exhibits prepared or assembled by Consultant in connection with the performance of its services DocuSign Envelope ID: A937E75E-84FF-43AE-8A1D-F60947BD58F6

EXHIBIT A

ITEM NO. 7.

Dillingham Associates
Agreement for Consultant Services
pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall not make any of the these documents or information available to any individual or organization not employed by the Consultant or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Consultant 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 Consultant in connection with other projects shall be solely at Town's risk, unless Consultant expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Consultant which is and has been confirmed in writing by Consultant to be a trade secret of Consultant.

2.6 Compensation. Compensation for Consultant's professional services shall not exceed $123,556, inclusive of all costs. 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. Consultant shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Consultant shall make these records available to authorized personnel of the Town at the Consultant's offices during business hours upon written request of the Town.

2.9 Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Consultant. 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 Consultant, 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 Consultant 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. Consultant agrees to DocuSign Envelope ID: A937E75E-84FF-43AE-8A1D-F60947BD58F6

ITEM NO. 7.

Dillingham Associates
Agreement for Consultant Services
testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Consultant 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 Consultant or is based on allegations of Consultant's negligent performance or wrongdoing.

2.11 Conflict of Interest. Consultant understands that its professional responsibilities are solely to the Town. The Consultant has and shall not obtain any holding or interest within the Town of Los Gatos. Consultant 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, Consultant 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. Consultant 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, Consultant discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement, Consultant 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. Consultant warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Consultant 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.

III. INSURANCE AND INDEMNIFICATION

3.1 Minimum Scope of Insurance:
i. Consultant 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. Consultant 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.

DocuSign Envelope ID: A937E75E-84FF-43AE-8A1D-F60947BD58F6

ITEM NO. 7.

Dillingham Associates
Agreement for Consultant Services
iii. Consultant shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Consultant agrees that all certificates and endorsements are to be received and approved by the Town before work commences.
iv. Consultant agrees to have and maintain, for the duration of the contract, professional liability insurance in amounts not less than $1,000,000 which is sufficient to insure Consultant for professional errors or omissions in the performance of the particular scope of work under this agreement.

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 Consultant; products and completed operations of Consultant, premises owned or used by the Consultant. This requirement does not apply to the professional liability insurance required for professional errors and omissions.
ii. The Consultant'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 Consultant'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 Consultant'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 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, Consultant 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, Consultant shall ensure that all subcontractors employed by Consultant provide the required Workers' Compensation insurance for their respective employees.

DocuSign Envelope ID: A937E75E-84FF-43AE-8A1D-F60947BD58F6

ITEM NO. 7.

Dillingham Associates
Agreement for Consultant Services

3.4 Indemnification. The Consultant 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 Consultant, or any of the Consultant's officers, employees, or agents or any subconsultant.

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 Consultant 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 Consultant shall deliver to the Town all plans, files, documents, reports, performed to date by the Consultant. In the event of such termination, Town shall pay Consultant 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 Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Consultant.

4.5 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.

4.6 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
Dillingham Associates
2927 Newbury Street
Berkeley, CA 94703
DocuSign Envelope ID: A937E75E-84FF-43AE-8A1D-F60947BD58F6

ITEM NO. 7.

Dillingham Associates
Agreement for Consultant Services
or personally delivered to Consultant to such address or such other address as Consultant designates in writing to Town.

4.7 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.

4.8 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Consultant. No terms, 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 Consultant have executed this Agreement.

Town of Los Gatos by:

Laurel Prevetti, Town Manager

Recommended by:

Jim Harbin
Acting Director of Parks and Public Works
Consultant, by:

M. Reed Dillingham, Principal
Approved as to Form:

Gabrielle Whelan, Town Attorney
Attest:

Wendy Wood, CMC, Town Clerk
DocuSign Envelope ID: A937E75E-84FF-43AE-8A1D-F60947BD58F6

ITEM NO. 7.
1 EXHIBIT A
Proposal for Landscape Architectural Services
Pinehurst Community Garden (CIP No. 831-4610) and
Lynne Avenue Pedestrian Path Design (CIP No. 832-4510)
Prepared for the Town of Los Gatos
Prepared by Dillingham Associates Landscape Architects
May 18, 2023
Approach & Understanding of Each Project
Pinehurst Community Garden
Municipal community gardens have become increasingly popular in the past ten years, a movement that increased during pandemic conditions. Santa Clara has recently opened the Eddie Souza Community Garden on the San Tomas Aquino Creek Trail, which has classes and a wait list for plots. Cupertino is currently building a new community garden in Wilson Park. Under-utilized parcelssuch asthe Pinehurst lot are a perfect opportunity for a use that creates a community gathering place, as well as a new civic facility.

The groundwork for the community garden project has already been laid with the support of a community that has already developed a preliminary site layout. This effort suggeststhat the process of outreach and engagement can be a productive one. The sketch plan creates a good starting point for discussion of program, size, scope, function, and adjacencies. Preliminary comments from PG&E and from Ninyo & Moore also provide clear guidance for design constraints and for outreach meeting agenda items.

The key task for this type of project is the ability to listen and respond to community ideas and concerns. The neighborhood has already invested energy into this project, and they will be the workers who will maintain the garden, and over time will curate the site into a unique garden. Moreso than many park projects, a community garden is an opportunity to incorporate the public’s vision into its physical form.

The proposed program is relatively straightforward, buildable and feasible. We can support the current program, but will endeavor to work with community members to verify whether any additional elements may be feasible.

While preliminary comments from PG&E and from Ninyo & Moore provide guidance, they also pose design challenges. We are fortunate to be able to partner with Christian Macke of 122 West landscape architects, who have a deep portfolio of community garden projects built upon extensive outreach processes.

After preliminary conversations with Ninyo& Moore, we propose to work with theirteam to refine the boundary of food operations, by further analyzing the limits of organochlorine pesticides (OCP) in the soil.

Organochlorine pesticides were used extensively from the 1940s through the 1960s in agriculture and mosquito control, but due to both their environmental persistence and neurotoxicity, their use has been banned or greatly reduced in the last decades. We propose to sample and analyze three (3) additional borings, and to provide a sequential analysis, which can be used to potentially save lab costs, pending results.

Beyond the basic amenities shown in the Sample Layout diagrammatic plan, many enhancements could Key:

Items in bold (Arial) are total fees per task
phase.

Items in blue show subconsultant fees.

Items in orange show proposed
Deliverables.

ITEM NO. 7.
2 EXHIBIT A
be considered.
• The meeting area can be planned and designed to be an outdoor classroom, a small plaza, and a setting for group meetings. Many good ideas and discussions come from informal gatherings and chance encounters.
• The garden would benefit from both informal seating areas, and one or more larger group areas. • An attractive entryway and signage can provide a new neighborhood landmark and site identity. • The type of buffer interface between the garden and adjacent residences should be considered, despite the small site area.
• Storage for group and personal gardening tools will be useful. • Parking for site managers, and optionally also for gardeners. • Shaded seating and/or gathering areas.
• Storage of compost, soil, mulch and other materials.

While limitationsfromPG&E and Valley Water, among others may impact the plan and project, we are passionate to advocate for a design that the community backs, to the extent that it isfeasible in terms of costs and permissions. This garden can create an opportunity and a public space that Los Gatos does not yet have.

The proposed garden and path, along with Howes Play Lot, will create a unique greenway with a sequence of experiences.

Most proposed planting will be in raised planter beds, the design of which allows for very low risks from any remnant soil pesticides (Organochlorine pesticides) due to the ease of installing a soil cap and importing soil as a growing medium. A soil cap could come in the form of clean soil, or a concrete slab, or a combination of the two throughout the site. It is not advised to pave a concrete slab base for the entire garden; however, a concrete cap might form an entry plaza, a driveway, or a work space while portions of the remainder of the site would be capped with only clean soil, a geotextile fabric, and optionally a wire mesh.

Lynn Avenue Pedestrian Path
This parcel has the potential to act as a bridge, connecting the Howes Play Lot with the new community garden. Depending on the results of community outreach and input, our approach to the design may be relatively straightforward. The plan would prioritize visibility of the pathway from streets at both ends. In addition to the pathway, some amenities that may be desired may include the following:
• compacted crushed rock jogging path;
• benches;
• trash containers at either end of path;
• drought-tolerant plantings;
• temporary irrigation for plant establishment
• pedestrian / security lighting. Amenities, including lighting, would not be located near residences in order to minimize impact on neighbors.

ITEM NO. 7.
3 EXHIBIT A
For a unique parcel such as this, some considerations should be taken during design:
• The existing site has easements for both PG&E overhead electric lines and forValleyWater pipelines, with minimal existing vegetation.
• whether easements, utilities and site conditions may limit the location of a paved pathway within the parcel. Our office would assist theTown with coordination with each utility agency, and all other stakeholders.
• any need, by theTown or other agencies, to have limited control of public access to the parcel; • specific limitations on pavement structures, trees and shrubs, and new irrigation infrastructure within the right-of-way;
• design limitations related to security visibility or fire access; • limitations on any additional site furnishings and amenities, such as benches, signs, and lights.

After preliminary conversations with Ninyo & Moore, we believe that the possible presence of orchard pesticides (OCPs) on this parcel does not pose a risk to users of a pathway. However, as our site knowledge is still preliminary, we have included a fee allowance for testing for budgeting purposes.

ITEM NO. 7.
4 EXHIBIT A
Description of Scope Tasks
Task 1 – Project Management
Project management for planning and design projects encompass the key project areas of schedule, fees, communications, team management, scope coordination, and quality control. Below is an outline of related proposed tasks. See the Fee Proposal worksheet for more details. • Develop Project Work Plan;
• Management of team sub-consultants;
• Site Analysis and Background Documents Review;
• Attend (2) Field Meetings / Site Visits (including travel time); • Attend up to (2) Coordination Meetings with Town and other agencies involved the project, including PG&E, Santa Clara Valley Water (SCVW), and San Jose Water. • Attend one (1) Coordination Meeting with Town’s Staff Arborist. Subconsultant Arborist scope is included below in Task 2
• Preparation of Meeting Notes;
• Quality Control reviews.

Coordination efforts with PG&E and with SCVW will have the objective of determining restraints on site design, such as construction limitations, minimum access needs, and site security. A second objective will be to seek the utility districts’ guidance on the best ways to meet project needs, such as shaded gathering spaces and tool storage, within the standard restrictions.

Deliverables: Project Management/Work Plan, addressing schedule, communications, team roles, and review process; Meeting Minutes.

ITEM NO. 7.
5 EXHIBIT A
Task 2 – Site Analysis
A. Topographic & Boundary Survey
B. Supplemental Soil Toxicology Analysis
C. Consulting Certified Arborist
D. Horticultural and Fertility Soil Analysis
Task 2, Dillingham Associates tasks
In addition to the sub-consultant tasks shown below, Site Analysis tasks to be performed by the prime consultant include preparation of Base Maps, development of Site Inventory Plans, and development of Opportunities & Constraints Plans. These plans will be developed based upon site information provided by subconsultants, and verified by one or more site visits.

Per our standard practices, we will submit a soil sample from the West Parcel site to a lab for horticultural planting analysis. This task and analysis is separate from Task 2C, below to expand upon previously performed soil toxicity analyses.

Task 2A) Topographic & Boundary Survey
As shown in our fee proposal, we will prepare topographic and boundary survey mapping for both sites, what are labeled in this proposal as the West Parcel, the site of a future community garden; and the East Parcels (two parcels), the site of a future pathway. We propose to complete the survey field work simultaneously for both project sites, while keeping the fees for each project clear and separate. Note that Lynn Avenue itself will not be included in the topographic surveying scope area, as this project does not propose new sidewalks along Lynn Avenue. Rights-of-way and easements will be defined from record maps and documents supplied by PG&E and by the Santa Clara Valley Water District. The survey will include surface utilities, fences, approximate location of overhead utility wires, crosswalks, signs, curb, gutter, sidewalk, trees over 4-inches in diameter, driveways and gates. Sufficient number of spot elevations will be taken to generate 1-foot contours.

Topographic surveying fee, for multiple sites, with subconsultant PLS Surveys is shown in the Fee Summary Table. Figures include 10% prime management fee. See also proposal from PLS Surveys, Inc.

Task 2B) Consulting Certified Arborist Services
We propose to work with our Arborist subconsultant Molly Batchelder of SBCA Tree Consulting in Crockett.

The arborist will survey all trees on site that are over 4-inches in diameter (estimated to be 10-15 trees). The survey will include a Tree Location Map, and will record data on the species; DBH; height; spread; health and structural condition; suitability for retention; pruning or health mitigation recommendations; Root Protection Zones (RPZ); and other pertinent arborist notes. A summary report will contain pre-construction health mitigation recommendations, commentary on tree retention suitability, and replacement species suggestions.

The Arborist fee includes any needed coordination with the Town’s staff arborist or Tree Division, as needed.

We do not propose to file for Tree Removal Permits during the 35% phase of work.

The Arborist will also make recommendations to the Town for treatment of neighboring tree branches which encroach into the project parcels across fence lines.

If needed, the Arborist would assist in coordination with PG&E and/or SCVW to discuss tree trimming and removal requirements.

We propose to complete the Arborist consulting work simultaneously for both project sites, while keeping the fees for each project clear and separate.

ITEM NO. 7.
6 EXHIBIT A
Arborist services fee, for each project, with subconsultant SBCA Tree Consulting, is shown in the Fee Summary Table. Figures include 10% prime management fee.

Task 2C) Supplemental Soil Characterization Analysis – Garden site only The Town is already in possession of a 2022 Soil Characterization Report by Ninyo & Moore, for the West Parcel, for the proposed Pinehurst Community Garden site. The objective was to assess the lateral and vertical extent of soil impacts from constituents of concern, including organochlorine pesticides (OCPs). Previously, samples from four boring locations were analyzed, and OCPs were present in notable quantities at boring location B-4. Subsequently, in April 2022, samples from four ‘step-out’ borings near location B-4 were also analyzed.

In order to refine the location of pesticides, the proposed additional soil analysis would include soil sampling analyses of (4) new borings, at 3-ft depth, with (2) samples per boring location. Samples will be analyzed for the presence of organochlorine pesticides (OCPs), and Title 22 Metals. The additional analysis work would be performed at the same screening level as the 2022 work, a Tier 1 Environmental Screening Level (ESL), a level that is used for ‘terrestrial habitat,’ such as park land projects.

We have also listed an additional optional task below for Risk Assessment and Statistical Analysis.

Soil assessment fee, for the West parcel only, with subconsultant Ninyo & Moore is shown in the Fee Summary Table. Figures include 10% prime management fee.

The future program for the Lynn Avenue Pathway project at the East Parcels is less determinate. As such, we propose that the Town defer the task of soil testing and toxicology analysis within the East Parcels until both a site program and a master plan or conceptual design plan are available. The program and concept plan will allow the Town to determine whether soil testing is advisable, what type of testing, and in which locations.

Under similar project conditions, the site is often not tested until construction is near.

Deliverables: Boundary and Topographical Survey; refinement of Soil Analysis; Risk Assessment and Statistical Analysis; Arborist report and supplemental comments; Horticultural lab test recommendations; Site Inventory Plan; Opportunities & Constraints Plan.

ITEM NO. 7.
7 EXHIBIT A
Task 3 – Community Engagement
We propose to lead the Town’s efforts to prepare outreach materials, graphics, meeting agendas, presentations, and meeting minutes. In addition, we will prepare for and moderate three community meetings, either inperson or virtual, and will work with the information the Town has and the Town’smethods of communicating with neighbors and other interested parties. Techniques vary for working with differentsize groups vary, particularly in reference to feedback fromthe audience.With smaller groups, itis easy to have direct back and forth conversations about concerns. With much larger groups, the interaction needsto be more structuressuch as advance delivery of questionnaires and responses so that complex issues can be addressed at the actual meeting. Our subconsultants will help lead these meetings.

Both the Garden project and the Pathway project would be addressed at each meeting described below, with a joint agenda. Because the Garden project already has some level of community support and awareness, the joint nature of the two projects makes for an excellent opportunity to for joint meetings. This format would likely provide a great form of public input for the Lynn Avenue Pathway project, input that would be difficult to provide if the two projects did not hold joint meetings. One likely scenario is that community members may attend meetings about the Garden project, and would stay to be able to provide input and comment on the Pathway project. However, the meeting agendas should be designed with the understanding that the type of input needed for each project is quite different.

The Garden-related meeting agendas are described below. However, the Pathway-related meeting agendas are not yet developed. The breadth of the Pathway agenda should be developed in concert with Town staff.

Because this project is still more preliminary than the Garden project, the meeting agenda will require discussion to determine whether to focus on Phase One improvements, long-term options, or both. Below are some optional meeting topics:
• Assessment of local recreation opportunities;
• Site Analysis;
• Goals and Objectives;
• Site Program, including passive and/or active recreation; • Constraints and Opportunities of Site and Program;
• Support elements, including parking, circulation, buffers at neighboring properties, noise, and lighting; Development Phasing, Schedule, and Costs.

Our subconsultant landscape architects, garden design Christian Macke and trail designer Sofia Zander, would assist with early Community Engagement meetings, as they have extensive experience in public engagement.

Their efforts would focus more upon the community meetings than on the Parks Commission meetings.

In our experience, two to three outreach meetings form a minimum or baseline for community outreach. If special conditions warrant additional outreach meetings, the consultant scope and fee can be discussed and negotiated. There is little reason at this point to believe that additional outreach meetings would be needed during later stages of design (e.g. 65%, 100%), but the question should be considered once the final design stage has commenced.

Meeting no. 1 would be a pre-design kickoff discussions for the community. The Garden agenda would allow the Town to inform the public about the project background, including site opportunities and constraints, schedule, budget, soil limitations, program limitations, and easement limitations. The Garden agenda would also allow garden users to inform the Town of the desired programs, elements, types and scale of urban

ITEM NO. 7.
8 EXHIBIT A
agriculture programs, and any concerns they may have. Depending on the number of participants, small groups could be formed for sketching and brief discussion, and then ideas could be summarized as a large group. To generate more discussion, consultants may show images of related Urban Agriculture programs that other communities have built.

Meeting no. 2A would allow the consultants to present to the community one or more concept plans which synthesize and clarify the ideas discussed in Meeting no. 1. One or more sketch plans would be presented for discussion. A key goal of the meeting is to build consensus. Meeting no. 2B would present to the Parks Commission a summary of this Meeting 2A.

Meeting no. 3A would allow the Town to provide a final nor nearly final preferred plan, at a point after most coordination issues have been resolved with utility districts and subconsultant site analyses. A Phasing Plan or a draft Phasing Plan has been prepared. Concerns have been addressed. A preliminary cost estimate has been prepared. Again, one goal is to report, and another is to build consensus. Meeting no. 3B would present to the Parks Commission a summary of this Meeting 3A.

Subconsultant Fees
Fees shown for this phase include fees for our subconsultant landscape architects, Christian Macke and Sofia Zander. Their fees are not shown here, to allow for better project flexibility; their fees are approximated on the Fee Worksheet. This arrangement will allow the design team to adapt to project needs for their expertise as they arise, and to allow the team members with the most capacity to undertake relevant tasks.

Design Work
Much of the related tasks of Conceptual Design and illustration for these Community Meetings is shown under Task 4, below.

Deliverables: Meeting facilitation, outreach graphics (including Design Concepts or Alternates), presentations, meeting agendas, meeting minutes, fliers or handouts, surveys, etc.

ITEM NO. 7.
9 EXHIBIT A
Task 4 – Conceptual Design and 35% Design Services
Each project will result in a separate 35% design packet, and separate cost opinions will be prepared for each project. Each project will require separate Phasing Plans. See the Approach & Understanding section above which provides additional relevant details forthese two projects.

Pinehurst Community Garden
A kick-off meeting will be held with Town staff. A project management plan will be presented and reviewed, including project schedule and milestones. The site analysis steps will be reviewed, and the Community Engagement will be developed beyond what is shown in this document.

The input generated during the Community Engagement phase will be used to guide work during the Conceptual Design and during the 35% Design plan. The goal during this stage is to advocate for the community’s vision as best possible, within the constraints of costs and permissions.

The work that falls under Site Analysis Task B1 above (Soil analysis and refinement of pesticide location) will allow the design team enough site information to better define which parts of the site will require programs that separate the users from toxic soils, such as driveways and paved areas.

The Concept Plan will be prepared to allow consensus with Town staff and with the community and the Parks Commission. The following criteria and elements will guide design at this stage:
• Site Programming
• Utility District restrictions
• Relation with East Lot
• Bed locations
• Dwarf tree planting
• Gathering space(s)
• Neighbor buffer zones
• Parking
• Fences and gates
• Work (lay-down) space
• Tool storage (also wheelbarrows)
• Layout that is feasible with plant needs (light, soil, space, height) Work for the final 35% plan would develop the consensus Concept Plan, and refine it to allow the Town and consultant to develop a well-defined work scope for final 100% plans, specifications, and estimates. This stage would focus on further criteria and elements:
• Staff availability for classes and site events;
• Define planting bed sizes;
• Size of gathering spaces and informal seating locations, and amount of shade; • Entryway scale and signage;
• Parking capacity in alignment with anticipated need;
• Visibility and adoption of CPTED practices;
• Size of buffer spaces between garden and neighboring properties; • Define size of areas with use restricted by utility districts; • Tree protection measures;

ITEM NO. 7.
10 EXHIBIT A
• Water and hose locations;
• Define vehicle unloading and lay-down spaces;
• Define soil storage area;
• Define tool storage type and area;
• Material selection and level of finish;
Examples of design tasks that would be excluded from this stage include irrigation design; soil specifications; and construction details.

Deliverables:

Program Diagram; Final Concept Plan; 35% Design Plan, 35% Cost Opinion; project Phasing Plan.

Lynn Avenue Pedestrian Path
The proposed garden and path project, along with Howes Play Lot, would create a unique greenway with a sequence of experiences.

A kick-off meeting will be held with Town staff. A project management plan will be presented and reviewed, including project schedule and milestones. The site analysis steps will be reviewed, and the Community Engagement will be developed beyond what is shown in this document.

A summary of existing conditions will be prepared, based on site visits, and on the work of the land surveyor, the Geologist and toxicologist, the soil lab report, and the project Arborist.

During the Community Engagement process, existing local recreation opportunities in the neighborhood will be assessed and evaluated, to allow informed consideration of possible new passive and active recreation programming. A Site Assessment and Analysis will then be developed based upon the public meeting notes and Town staff input. Constraints and opportunities will be presented for optional passive and active recreation uses. This analysis will include review of Town policies and maintenance capabilities.

The final Concept Plan will show proposed site programs, locations, approximate scale, and relationships between programs.

The 35% Design Plan will include a Cost Opinion, a Phasing Plan, and a range of possible timelines.

Concept Design Alternatives
Our process for this phase of design will be to prepare several alternative plans or concepts to elicit ideas and comments from the audience of neighbors and other interested participants. The result may be the selection one or another of alternative ideas or some combination of ideas into a preliminary plan. 35% Design Documents
Based on comments at the public meetings as well as any comments received by mail or email, we will synthesize the ideasfromthe public as well asthose from the Town and our own into one or more options or alternative plans. These will be reviewed with Town staff for consistency of intent with the comments and feasibility with project requirements. Important design details will be developed and included as part of the 35% project documents.

ITEM NO. 7.
11 EXHIBIT A
Optional Master Plan Design Report
The future program for the Lynn Avenue Pathway project at the East Parcels is less determinate than that of the Pinehurst Community Garden. Because of this difference in project progress, the Town may feel it helpful or necessary to invest more planning and design effort in this project in the form of a Master Plan design report. A report would allow for more in-depth discussion of short-term and long-term developments, in both graphical and narrative form. Topics of discussion would likely include project Goals and Objectives; Site Analysis and Existing Conditions; Master Plan including organizing ideas, parking, circulation, buffers at neighboring properties, noise, and lighting; Program Development; Facilities Development; and Development Phasing, Schedule and Costs.

This work is out of scope for Taks 4. See description of Optional Tasks below.

Subconsultant Fees
Fees shown for this phase include fees for our subconsultant landscape architects, Christian Macke and Sofia Zander. Their fees are not shown to allow for better project flexibility. This arrangement will allow the design team to adapt to project needs for their expertise as they arise, and to allow the team members with the most capacity to undertake relevant tasks.

Deliverables:

Final Concept Plan; 35% Design Plan, 35% Cost Opinion; project Phasing Plan.

Optional Report deliverable: Master Plan design report.

ITEM NO. 7.
12 EXHIBIT A
Task 5 – Final Design and Construction Documents
Scope for this task has not yet been developed.

Task 6 – Bid Award and Construction Administration
Scope for this task has not yet been developed.

Optional Tasks
Optional Task A - Pinehurst Community Garden – Risk Assessment and Statistical Analysis Forthe Pinehurst Community Garden site, most proposed planting will be in raised planter beds. The design of the raised beds allows for very low risks from any remnant soil pesticides (Organochlorine pesticides) due to the ease of installing a soil cap and importing soil as a growing medium.

Our preliminary site assessment has indicated that the site would benefit from tree crops, which form a good buffer at neighboring properties, and provide more definition and interest to many gardens. At the same time, our review of PG&E’s Impact Letter (dated 2/3/2023) indicates that this would be acceptable along the border of the transmission line right-of-way, so long as such trees are dwarf species no taller than 10-feet.

For tree planting specifically, a Risk Assessment and Statistical Analysis performed by Ninyo & Moore could provide the Town with some environmental liability protection. If the Risk Assessment outcome is unfavorable, the result would provide guidance to not plant trees, and if the outcome is favorable, it would provide some liability protection. Tree crops, in theory, could benefit from a Risk Assessment. Be aware that most tree fruits and crops are not the locus where toxins are found, as they tend to concentrate in tree leaves and other parts of the anatomy. If the risk assessment demonstrates the site to be unsafe, we would work with Ninyo & Moore to propose and evaluate solutions such as complete soil remediation (excavation and disposal), capping of toxic soil areas, and limiting garden use to only raised planters.

We are showing an optional task for Ninyo & Moore to prepare a Risk Assessment and Statistical Analysis.

Optional Task 1 would include sampling of 10 new borings, laid on a grid, with collection of two samples per boring, to have sufficient data set for a statistical analysis. By proposing likely future crops, the analysis would allow us to complete a risk assessment of those crops, yielding the probability that a toxin of concern would reach that crop or would reach a garden user.

Risk Assessment and Statistical Analysis fee, for the Pinehurst Community Garden on the West parcel only, including 10 new borings and 20 samples, with subconsultant Ninyo & Moore is shown in the Fee Summary Table. Figures include 10% prime management fee.

ITEM NO. 7.
13 EXHIBIT A
Optional Task B - Illustrated Perspective Renderings (for either or both projects) Optional Task C - Lynn Avenue Pedestrian Pathway Master Plan design report Topics of discussion would include project Goals and Objectives; Site Analysis and Existing Conditions; Master Plan including organizing ideas, parking, circulation, buffers at neighboring properties, noise, and lighting; Program Development; Facilities Development; and Development Phasing, Schedule and Costs. See narrative description above for more details.

Standard Project Procedures and Disclaimers
Submittal to Planning Department or Planning Commission is not within scope.

CEQA, NEPA, Environmental or other regulatory permitting is not within scope.

C.3 stormwater calculations and mitigations, and preparation of stormwater control plans are not included, and no civil engineering work is within scope.

Structural engineering, inclusive of wall design, is not within scope.

LEED, SITES, GreenPoint, and Bay-Friendly certifications have not been included.

Section 508 Document Remediation services are not within scope.

Additional revisions will be charged at hourly rates; as stated elsewhere in this proposal; or as agreed with client.

Project is subject to review by only those agencies and entities explicitly noted in this proposal.

Additional meetings, site visits, submittals, and revisions shall be billed at hourly rates shown on Fee Worksheet.

Only those subconsult tasks and fees shown have been included in this proposal. Other subconsultant tasks are excluded, including but not limited to civil engineering, architecture, electrical engineering, geotechnical engineering, structural engineering, environmental permitting, CASp access consulting, and irrigation design.

If significant findings are made regarding the existing site conditions that affect the scope of the landscape architect’s work, the contract scope and fee shall be re-negotiated.

ITEM NO. 7.
14 EXHIBIT A
Fee Summary
Pinehurst Community Garden Design (CIP No. 831-4610)
Task number Task Name Lump Sum Fee
1 Project Management $ 3,038
2 Site Analysis $ 1,355
2A Topographic & Boundary Survey $ 3,080
2B Consulting Certified Arborist Services $ 1,650
2C Supplemental Soil Toxicology Analysis $ 11,000
3 Community Engagement $ 12,125
4 Conceptual Design and 35% Design $ 32,995
DC Direct Costs, maximum not-to-exceed $ 850
PROJECT TOTAL $ 66,093.00
Items not included in this current contract
Optional Task A Pinehurst Community Garden – Risk Assessment and Statistical Analysis
$ 44,000
Optional Task B Illustrated Perspective Renderings, fee per rendering $ 4,000 Fees shown include prime consultant management fees of subconsultants.

Fee Summary
Lynn Avenue Pedestrian Path Design (CIP No. 832-4510)
Task number Task Name Lump Sum Fee
1 Project Management $ 3038
2 Site Analysis $ 1195
2A Topographic & Boundary Survey $ 3630
2B Consulting Certified Arborist Services $ 1650
3 Community Engagement $ 12,125
4 Conceptual Design and 35% Design $ 32,995
DC Direct Costs, maximum not-to-exceed $ 500
PROJECT TOTAL $ 55,133.00
Items not included in this current contract
Optional Task B Illustrated Perspective Renderings, fee per rendering $ 4,000 Optional Task C Master Plan design report $ 10,000
Fees shown include prime consultant management fees of subconsultants.

ITEM NO. 7.
15 EXHIBIT A
Schedule

1. Project Start-up / Project Management
Project start date anticipated in July 2023. Start-up tasks duration of (6) weeks. Project management tasks continue throughout project.

Provide regular updates to the Town’s project manager, including a coordination meeting with Town and other agenciesinvolved, meeting agendas and minutes. Conduct field visits and site analysis as well as reviewing project existing documents to fully understand project background and to develop a work plan.

2. Topo Survey and Soil Analysis
Allow (1) month, Concurrently withTask 1. Start July 2023

3. Community Engagement
Allow (3) months. Concurrently withTask 4. Start September 2023 Assistance in outreach efforts; facilitation of community meetings (both in-person and video); presentation of design concepts and graphics to the public.

4. Conceptual Design Options
4A . Conceptual Design Options:

Allow (1) month. Start September 2023
Comment and Feedback Turnaround
Allow (2) weeks for comments and feedback turnaround
Document Revisions after Commentsfrom Community andTown Parks Commission Allow (2) weeks for comments and feedback turnaround
4B. 35% Design
Allow (10) weeks. Start January 2024 Design
Package Submittal
Comment and FeedbackTurnaround
Allow (2) weeks for comments and feedback turnaround
Document Revisions after Commentsfrom Community andTown Parks Commission Allow (2) weeks for comments and feedback turnaround

5. 100% Project Completion
April 2024

ITEM NO. 7.

PREPARED BY: Meredith Johnston
Administrative Technician
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, 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: 05/21/2024
DATE: May 16, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Use Agreement with Los Gatos-Saratoga Community Education and Recreation:
a. Authorize the Town Manager to Execute a First Amendment to Use Agreement with Los Gatos-Saratoga Community Education and Recreation for an Additional One-Year Period from July 1, 2024 to June 30, 2025; and
b. Authorize the Town Manager to Execute any Forthcoming Amendments During the Duration of this Agreement.

RECOMMENDATION:

Use Agreement with Los Gatos-Saratoga Community Education and Recreation a. Authorize the Town Manager to execute a First Amendment to Use Agreement with Los Gatos-Saratoga Community Education and Recreation for an additional one-year period from July 1, 2024 to June 30, 2025; and
b. Authorize the Town Manager to execute any forthcoming amendments during the duration of this Agreement.

BACKGROUND:

Los Gatos-Saratoga Community Education and Recreation (LGSR), established in 1956, serves the residents of Los Gatos, Saratoga, Monte Sereno, and Santa Cruz Mountains communities by providing community education and recreation services. The Town has had a historical partnership with LGSR, including a lease agreement since 2009 and a programming agreement since 2014.

ITEM NO. 8.

PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute a First Amendment to Use Agreement with Los Gatos-Saratoga Community Education and Recreation DATE: May 9, 2024
BACKGROUND (continued):

The existing terms of the Use Agreement governing LGSR's utilization of specific Town Parks for programming are:

1. Use of Premises: LGSR to provide schedules for programming sessions.

2. Term of Agreement: One year with nine additional one-year periods.

3. Annual Use Fee: $15,500, which includes provision for senior programming.

4. Facility Maintenance Fee: $4.00 per participant.

5. Annual Use Fee Adjustment: Adjusted annually based on CPI changes.

6. Maintenance: LGSR responsible for site clean-up.

7. Facility Use Policies: LGSR to comply with all applicable provisions of the Los Gatos Town Code and park regulations.

DISCUSSION:

The proposed First Amendment to Use Agreement (Attachment 1) provides LGSR the continued use of certain facilities at Blossom Hill Park, Creekside Park, La Rinconada Park, and Oak Meadow Park (collectively, the “Premises”) for an additional year.

The amended terms of the proposed First Amendment to Use Agreement upon which both parties agree are as follows:

1. Term of Agreement:

The amendment will extend the term of the agreement by an additional year, to June 30, 2025, with eight additional one-year periods remaining. The Town Manager would be authorized the execute future amendments extending the term of the Agreement for up to eight additional one-year periods.

2. Annual Use Fee:

Beginning July 1, 2024 LGSR shall pay the Town of Los Gatos $16,042.50. The Annual Use Fee shall be considered full and fair compensation for use of the Premises for those days and times on the approved Annual Schedule.

CONCLUSION:

Authorize the Town Manager to execute a First Amendment to Use Agreement with Los GatosSaratoga Community Education and Recreation for an additional one-year period from July 1, 2024 to June 30, 2025 and authorize the Town Manager to execute any forthcoming amendments during the duration of this Agreement, including any future extensions.

ITEM NO. 8.

PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute a First Amendment to Use Agreement with Los Gatos-Saratoga Community Education and Recreation DATE: May 9, 2024
FISCAL IMPACT:

Approval of the First Amendment to Use Agreement with LGSR would result in annual revenue of $16,042.50 beginning July 1, 2024. Each future year of the agreement the fee will increase as defined in the Agreement terms. Additional revenue will be derived from the Facility Maintenance Fee, which will be paid to the Town on a semi-annual basis.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Use Agreement with Los Gatos-Saratoga Community Education and Recreation

2. First Amendment to Use Agreement with Los Gatos-Saratoga Community Education and Recreation

ITEM NO. 8.

First Amendment to Use Agreement
Los Gatos-Saratoga Community Education and Recreation

FIRST AMENDMENT TO AGREEMENT
This FIRST AMENDMENT TO USE AGREEMENT is dated for identification this 21st day of May 2024 and amends that certain Use Agreement dated July 1, 2023, made by and between the Town of Los Gatos, ("Town,") and the Los Gatos-Saratoga Community Education and Recreation (“LGSR”) identified as a Joint Powers Authority and whose address is 208 E. Main Street, Los Gatos, CA 95030.

RECITALS
A. Town and LGSR entered into a Use Agreement on July 1, 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 extend the term and to increase the annual use fee of the Agreement.

AMENDMENT

1. Section 2.3 Term of Agreement is amended to read:

The Agreement will remain in effect from July 1, 2023, to June 30, 2025, with eight additional optional one-year extensions remaining. The Town Manager is authorized to approve future amendments extending the term of this Agreement for up to eight additional one-year extensions.

2. Section 2.4 Annual Use Fee is amended to read as follows:

Beginning July 1, 2024, LGSR shall pay $16,042.50. The Annual Use Fee shall be considered full and fair compensation for use of the Premises for those days and times on the approved Annual Schedule.

3. All other terms and conditions of the Agreement remain in full force and effect.

ATTACHMENT 1

ITEM NO. 8.

First Amendment to Use Agreement
Los Gatos-Saratoga Community Education and Recreation
IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment.

Town of Los Gatos: Approved as to Consent:
_______________________________ ______________________________ Laurel Prevetti, Town Manager Nancy Rollett, Executive Director 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. 8.

Use Agreement
Los Gatos-Saratoga Community Education and Recreation

USE AGREEMENT

BETWEEN THE TOWN OF LOS GATOS
AND

LOS GATOS-SARATOGA COMMUNITY EDUCATION AND RECREATION
THIS AGREEMENT is dated for identification this 1st day of July 2023 and is made by and between TOWN OF LOS GATOS, State of California (“Town”) and LOS GATOS-SARATOGA COMMUNITY EDUCATION AND RECREATION (“LGSR”) identified as a Joint Powers Authority and whose address is 208 E. Main Street, Los Gatos, CA 95030.

I. RECITALS

1.1 Los Gatos-Saratoga Community Education and Recreation (“LGSR”), a joint powers agency of the Los Gatos Union School District, Saratoga Union School District, and Los GatosSaratoga Union High School District was established to ensure the effective and efficient provision of community education and recreation services to the communities of Los Gatos, Saratoga, Monte Sereno, and Santa Cruz Mountains communities.

1.2 LGSR provides fee-based public recreation, supplemental education, and childcare programs for Los Gatos, Monte Sereno, Saratoga, and the Santa Cruz Mountains communities. LGSR and the Town have been under contract since 2014 for programs within certain parks that are owned and operated by the Town.

1.3 In order to provide convenient and effective programs to its constituent communities, LGSR desires to use various parks and open spaces owned and maintained by the Town of Los Gatos (“Town”).

1.4 The Town requested and LGSR has agreed to provide recreational programming for adults aged 55 years and older for the Town of Los Gatos.

II. AGREEMENTS

2.1 Subject Premises. The premises covered by this agreement are the portions of Blossom Hill Park, Creekside Sports Park, La Rinconada Park, and Oak Meadow Park (collectively, the “Premises”) denoted in Attachment 1. LGSR may request the use of additional premises which shall be considered by the Town and authorized for use as more fully described in Section 2.7.

2.2 Use of Premises. LGSR shall be allowed the use of the Premises for approved Programs during those times and dates as shown on the “Annual Schedule”. The Annual Schedule shall cover camps and classes and shall identify what portion or portions of the Premises shall be designated for each approved Program. Each year this Agreement is in force, LGSR shall submit a schedule no later than June 30th for the upcoming Fall session, no later than DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE ATTACHMENT2
EXHIBIT A Page 202
ITEM NO. 8.

Use Agreement
Los Gatos-Saratoga Community Education and Recreation

September 30th for the upcoming Winter and Spring session, and no later than February 28th for the upcoming Summer session.

LGSR may request changes to the Annual Schedule by written notification to the Department of Parks and Public Works but shall endeavor to minimize changes to the schedule. All changes should be made in writing no less than 30 days prior to the effective date of the change. Town has the final say in establishing the master schedule. Town will attempt to accommodate user groups at their requested time but reserves the right to propose use hours that balance the needs of all user groups equitably. The Town of Los Gatos shall have sole authority to approve the Annual Schedule and any requested changes to the Annual Schedule.

LGSR may partner with third party providers that have executed Use Agreements with the Town. In the case of such partnerships the Use Hours and Facility Maintenance Fee payments will be paid by the third party and not by LGSR.

2.3 Term of Agreement. Unless terminated sooner pursuant to Section 4.3 of this Agreement, the Use Agreement remains in effect from July 1, 2023 through June 30, 2024. The term of this Agreement may be extended for up to nine additional one-year periods.

2.4 Annual Use Fee. Beginning July 1, 2023, and every year thereafter, LGSR shall pay the Town of Los Gatos an Annual Use Fee for the use of the Premises. The initial Annual Use Fee shall be $15,500, which represents 4,607 hours of Premises Use. The Annual Use Fee shall be considered full and fair compensation for use of the Premises for those days and times on the approved Annual Schedule, and in conjunction with the Facility Maintenance Fee described in Section 2.5, shall be used by the Town to help fund the cost of the maintenance of the Premises.

2.5 Facility Maintenance Fee. Beginning July 1, 2023, and continuing for the full term of this agreement, including any extensions, each participant in programs or classes offered by LGSR on Town premises will be charged a four ($4.00) Facility Maintenance Fee (FMF) per session. The Facility Maintenance Fee shall be assessed by LGSR at the time of registration or payment of program fees and shall be remitted to the Town quarterly. Participants shall be charged an FMF for each separate registration in a program or class offered by LGSR offered on the Premises covered by this agreement.

2.6 Annual Use Fee Adjustment-Change in CPI. On July 1, 2024, and each anniversary thereafter, the Annual User Fee shall be adjusted according to the percent change in the U. S. Department of Labor, Bureau of Labor Statistics Consumer Price Index, All Items, All Urban Consumers, San Francisco-Oakland-San Jose, 1982-84-100 Index.

2.7 Annual Use Fee Adjustment-Change in Programming or Facilities. On July 1, 2024, and each anniversary thereafter, the Annual User Fee shall also be adjusted based on programming changes resulting in a material increase or decrease in the use of the DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

Use Agreement
Los Gatos-Saratoga Community Education and Recreation

Premises. In addition, the Annual User Fee shall be adjusted to reflect the addition of any new facilities or cessation of use at any of the facilities that comprise the Premises. Should LGSR increase or decrease its requested hours of use as set forth in the Annual Schedule, by 5% or more, the Annual Use Fee shall be adjusted proportionally based on the percentage change in hours. Any fee adjustment under this section will be negotiated in good faith between the Town and LGSR as part of the development of the Annual Schedule. Programming that is specifically marketed to and participation is limited to senior participants aged 55 years and older shall not be included in the calculated increase of hours.

2.8 Maintenance. LGSR shall be responsible for general site clean-up including pick up and disposal of trash that may result from the approved use of the Premises.

2.9 Facility Use Policies. LGSR shall comply, without limitation, with all applicable provisions of the Los Gatos Town Code, with special attention to Chapter 19, Parks and Recreation provisions. LGSR shall also comply with any park rules and regulations established by the Director of Parks and Public Works pursuant to Section 19.10.025(17) of the Town Code, including those rules set forth in Attachment A, Town of Los Gatos Park Rules and Regulations. LGSR agrees to comply with the current rules and regulations available at www.losgatosca.gov/parkres as well as any future amendments to those rules and regulations. Failure to comply with these policies may result in suspension and/or termination of this agreement.

LGSR agrees to comply with the state “Fair Play in Community Sports Act.” LGSR will not discriminate on the basis of gender and boys’ and girls’ teams will have equal access to the facilities.

2.10 Payment. LGSR shall make all payments, whether or not invoiced by Town, required pursuant to this Agreement no later than November 1 and April 1 of each year that such payments are due. All payments shall be mailed by first class mail or delivered in person at Town offices and addressed as follows:

Town of Los Gatos
Attn: Finance Department
P.O. Box 697
Los Gatos, California 95031

2.11 Assignment. LGSR shall not assign any portion of this Agreement or allow any use of the Premises by any other person or entity contrary to this Agreement's terms, without the Town's prior written approval. LGSR is expressly prohibited from use of the Premises for any activity other than activities sanctioned and associated with LGSR.

2.12 Personal Property. Personal property of LGSR shall be LGSR’s sole responsibility to acquire, repair, replace and store. Any storage of personal property on the Premises shall DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

Use Agreement
Los Gatos-Saratoga Community Education and Recreation

require prior approval by the Town. LGSR shall remove all personal property at the expiration or termination of this Agreement, or sooner, as directed by the Town in its sole discretion. Any personal property not so removed with 30 days of notification by the Town shall become the sole property of Town with no compensation.

2.13 Temporary Signage. LGSR shall be permitted to install temporary event signage on the Premises upon approval of an application to the Town of Los Gatos Planning Department pursuant to the provisions of Section29.10.120 (4) Event Signs of the Town Code. Each LGSR Activity Quarter (summer, fall spring, winter) shall be eligible for temporary event signage. All temporary event signage must include the LGSR logo of such size and placement that it is clear that the signage is for a program or activity sponsored by LGSR.

The Town shall charge a single Temporary Signage fee for each year.

2.14 New Program Vendors Referral. The Town and LGSR shall meet and negotiate in good faith a New Program Vendor Referral procedure, wherein the Town directs prospective new program vendors to LGSR for initial consideration prior to any issuance of permits or negotiation of use agreements directly between the Town and the prospective vendor.

III. INSURANCE AND INDEMNIFICATION

3.1 Minimum Scope of Insurance:
i. LGSR agrees to have and maintain for the duration of this Agreement, General Liability insurance policies insuring LGSR, its elected and appointed officials, employees, and agents 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. Insurance is to be placed with insurers with a current Best’s rating of no less than B+. ii. LGSR agrees to have and maintain, for the duration of this Agreement, an Automobile Liability insurance policy insuring the LGSR, its elected and appointed officials, employees, and agents to an amount not less than one million ($1,000,000) combined single limit per accident for bodily injury and property damage.
iii. LGSR shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. LGSR shall provide all certificates and endorsements before term of Agreement begins.

DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

Use Agreement
Los Gatos-Saratoga Community Education and Recreation

General Liability:
i. The Town, its elected and appointed officials, employees and agents are to be covered as additional insured as respects to liability arising out of activities occurring on or related to the occupancy and use of the Premises by LGSR.
ii. The LGSR’s insurance coverage shall be primary insurance as respects the Town, its elected and appointed officials, employees and agents. Any insurance or self-insurance maintained by the Town, its elected and appointed officials, employees or agents shall be excess of the LGSR’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 LGSR’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, canceled, reduced in coverage or in limits except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the Town. The LGSR shall ensure that current certification of such insurance is on file at all times with the Town Clerk during the term of this agreement.

3.3 Workers’ Compensation. In addition to these policies, LGSR shall have and maintain Workers’ Compensation insurance as required by California law. Further, LGSR shall ensure that all contractors employed on the Premises by the LGSR provide the required Workers’ Compensation insurance for their respective employees.

3.4 Property Insurance. LGSR shall have no obligation to maintain any insurance of the Premises or any personal property placed on the Premises. LGSR shall be solely responsible for obtaining whatever insurance coverage that the LGSR believes may be appropriate to protect and indemnify the LGSR for loss to the Premises or to any personal property that the LGSR may place on the Premises.

3.4 Indemnification. LGSR agrees to indemnify, hold harmless, and defend the Town, its elected and appointed officials, employees, and agents, from and against any and all damages, claims or liability, penalties, costs or expenses in law or equity that may at any time arise from any loss, damage, or injury to persons or property occurring in or about the Premises that arises out of or incident to the LGSR’s use of the Premises, including use by anyone that the LGSR has permitted or allowed to use the Premises. This obligation to DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

Use Agreement
Los Gatos-Saratoga Community Education and Recreation

indemnify, hold harmless, and defend applies whether or not the incident or claim or liability is or may be related negligence on the part of the Town.

IV. GENERAL TERMS

4.1 Damage and Destruction. Damage or destruction of any portion of the Premises by any cause shall not terminate this Agreement or otherwise affect the respective obligations of the two parties, any present or future law to the contrary notwithstanding, except pursuant to the provisions of this Section 4.1.

If because of destruction or damage, a portion of the Premises becomes unsuitable or inadequate for use as specified in the Annual Schedule the Town and LGSR shall meet and work cooperatively to identify an alternative location for the use. If the alternative location can be found on Town-owned property, then no modification of the Annual Use Fee shall be made. If no alternative location can be found, or if an alternative location is found that is not on Town-owned property, then LGSR shall be entitled to a prorated refund of the Annual Use Fee, calculated by determining that fee that would have been assessed for the displaced program or activity is if it had been issued a Facility Use Fee Permit. Any such calculation will be based on the Town’s approved schedule of Annual Fees and Charges in effect at the time of the program displacement.

Under no circumstances does the Town have any obligation to provide LGSR with an alternative property to conduct its operations, and LGSR is solely responsible for obtaining such insurance as the LGSR deems appropriate to protect its interests should damage or destruction to any of the Premises occur.

LGSR shall be liable for any loss, damage, or injury to the Premises as a result of the direct or indirect use of the Premises by LGSR under this agreement.

4.2 Compliance with Town Codes. LGSR shall comply with all Town Code provisions, including Chapter 19 of the Code concerning Parks and Recreation.

4.3 Termination of Agreement. LGSR shall promptly terminate its use of the Premises at the expiration of this Agreement, leaving the Premises in the same condition it was received, in good order and repair, reasonable wear and tear and damage by the elements excepted. Any personal property not removed by LGSR within thirty (30) days of the termination of this Agreement shall become the property of the Town and may be disposed of as the Town in its sole discretion deems advisable.

This Agreement shall continue in full force and effect unless prior to February 1st of any calendar year, either Party provides written notice to the other Party that it desires to terminate the Agreement for convenience and, upon such notice, the Agreement shall terminate on June 30th of the same calendar year.

DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

Use Agreement
Los Gatos-Saratoga Community Education and Recreation

If Town in its sole discretion determines that it requires the Premises for any public purpose, Town may terminate this Agreement upon one hundred eighty (180) days written notice. In the event of an emergency, Town may terminate this Agreement upon five (5) days written notice. “Emergency,” for the purpose of this paragraph, is defined as when the Town Council declares a State of Emergency. Upon termination of this Agreement in the event of an Emergency, Town and LGSR will work cooperatively to secure alternative facilities for LGSR programs.

In the event of any material default or breach by LGSR, Town may at any time, thereafter, following any notice required by statute, and without limiting Town in the exercise of any right or remedy which may have reason of such default or breach:

Terminate LGSR’s right to possession of the Premises by any lawful means, in which case this Agreement shall terminate and LGSR shall immediately surrender possession of the Premises to Town. In such event, Town shall be entitled to recover from LGSR any damages incurred by Town by reason of LGSR’s default including but not limited to the cost of recovering possession of the Premises and reasonable attorneys’ fees.

Pursue any other remedy now or hereafter available to Town under the laws of the State of California. Town shall have all remedies provided in law and equity.

LGSR waives all rights of redemption or relief from forfeiture under California Code of Civil Procedure sections 1174 and 1179, and any other present, and future law, in the event LGSR is evicted or Town otherwise lawfully takes possession of the Premises by reason of any default or breach of this Agreement by LGSR.

4.4 No Property Rights. Nothing in this Agreement is in any way intended to establish, convey, create or otherwise grant LGSR any form of property rights in the Premises, nor shall such rights be established, conveyed, created or otherwise granted by LGSR’s use of the Premises pursuant to this Agreement. LGSR hereby acknowledges that it currently has no property interest in the Premises or any improvements thereto or fixture’s location thereon, and that any claim it may have to same is hereby and forever waived.

4.5 Notices. Any written correspondence of Notices given under this Agreement shall be addressed as follows:

To the LGSR: To the Town:

Executive Director Director
Los Gatos-Saratoga Recreation Department of Parks and Public Works 123 E. Main Street Town of Los Gatos
Los Gatos, CA 95030 41 Miles Avenue
Los Gatos, CA 95030
DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

Use Agreement
Los Gatos-Saratoga Community Education and Recreation

Notices shall be delivered by first class, postage prepaid mail or in person. If mailed, a notice shall be deemed effective on the fifth day following in the U.S. Mail.

4.6 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 subsequent breach of the same or any other provision of this License Agreement.

4.7 Entire Agreement. This Agreement constitutes the complete and exclusive statement of the Agreement between Town and LGSR. No terms, conditions, understanding, 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 LGSR have executed this Use Agreement.

Town of Los Gatos:

Laurel Prevetti, Town Manager
Recommended by:

Nicolle Burnham
Director of Parks and Public Works
Los Gatos-Saratoga Recreation:

Nancy Rollett, Executive Director
Approved as to Form:

Gabrielle Whelan, Town Attorney
Attest:

Wendy Wood, CMC, Town Clerk
DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

ATTACHMENT 1
Areas Included in this Agreement
Use Agreement
Los Gatos-Saratoga Community Education and Recreation

DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

ATTACHMENT 1
Areas Included in this Agreement
Use Agreement
Los Gatos-Saratoga Community Education and Recreation

DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

ATTACHMENT 1
Areas Included in this Agreement
Use Agreement
Los Gatos-Saratoga Community Education and Recreation

DocuSign Envelope ID: C29E638E-8DC0-4001-9A16-D36AD5F3C2EE

ITEM NO. 8.

PREPARED BY: Nicolle Burnham
Parks and Public Works Director
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: 05/21/2024
DATE: May 16, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Receive a Report on the State Route 17 Corridor Congestion Relief Capital Project (CIP No. 813-0237); and Authorize the Town Manager to Execute an Amendment to an Existing Agreement with the Santa Clara Valley Transportation Authority to Extend the End Date to December 31, 2027 and Increase the Town’s Funding Contribution to $1,470,000
RECOMMENDATION:

Receive a report on the State Route 17 Corridor Congestion Relief Capital Project (CIP No. 813- 0237) and authorize the Town Manager to execute an amendment (Attachment 1) to an existing agreement (Attachment 2) with the Santa Clara Valley Transportation Authority to extend the end date to December 31, 2027 and increase the Town’s funding contribution to $1,470,000.

BACKGROUND:

On November 8, 2016, voters of the County of Santa Clara enacted the 2016 Measure B program to provide 30 years of funding for transportation priorities. One category of funding is Highway Interchanges. The Town of Los Gatos requested that the Highway 17 Corridor Congestion Relief Project (the Project) be funded through this Measure B program category.

The Project was subsequently included by the Valley Transportation Authority (VTA) on the list of eligible projects that was adopted by the Board of Directors at its August 4, 2016 meeting.

On March 19, 2019 (Agenda Item 7), Town Council expressed their support for Measure B funded improvements at Highway 9 and Highway 17 Interchange and directed staff to amend General Plan 2020 to reflect the Town’s support of the project. Resolution 2019-056 was adopted on November 17, 2019 to amend General Plan 2020 as directed in the March Town Council action.

ITEM NO. 9.

PAGE 2 OF 3
SUBJECT: State Route 17 Corridor Congestion Relief Project (CIP No. 813-0237) DATE: May 16, 2024
BACKGROUND (continued):

On April 4, 2019, the VTA Board approved the allocation of $5.4 million to the Project. The Town’s Fiscal Year (FY) 2019/20 Capital Improvement Program Budget allocated $600,000 to this project.

On June 15, 2021, the Town and VTA entered into an agreement for the preparation of a Project Initiation Document (PID) and to undertake the Project Approval / Environmental Document (PAED) phase of work. The value of this agreement was $6,000,000, with $600,000 provided by the Town (the required 10%contribution) and the remaining $5,400,000 provided by VTA through the Measure B Program. This agreement has an expiration date of June 30, 2024.

On September 5, 2021 (Agenda Item 6), Town Council authorized the Town Manager to submit a competitive grant application to VTA for a Measure B allocation to support the Design Phase of the project. In that application, the Town committed to provide matching funds of $867,000, in addition to the $600,000 previously committed and expended. The Town’s Capital Improvement Program Budget for FY 2022/23 added the $867,000.

DISCUSSION:

The PID phase of work has been completed. The PAED phase is still in process and should be complete in the summer of 2025. Staff recommends that the existing agreement be extended to December 31, 2027 to allow for completion of the PAED and for project design. These project development activities will require the Town to expend the $867,000 promised in the 2021 grant application and allocated in the Town’s CIP for this project. This expenditure would bring the total Town contribution for the Project to date to $1,467,000. Executing the proposed amendment, with the Town giving VTA the $867,000, will allow the VTA to release an additional $7.8 million dollars from the Santa Clara County Measure B Program funding that was allocated by the VTA Board of Directors for this Project.

If the Town were not to spend this match and extend the agreement, then VTA could complete the PAED phase of work and the project could cease. The $7.8 million in Measure B funding could be reallocated to another highway-related project in Santa Clara County.

CONCLUSION:

Staff recommends that the Town continue to support VTA’s work to design improvements for Highway 17 and Route 9 interchange by authorizing the Town Manager to execute the amendment to the project agreement.

ITEM NO. 9.

PAGE 3 OF 3
SUBJECT: State Route 17 Corridor Congestion Relief Project (CIP No. 813-0237) DATE: May 16, 2024
COORDINATION:

This report was coordinated with VTA, the Finance Department, and the Town Attorney’s Office.

FISCAL IMPACT:

There is sufficient funding in the FY 2023/24 – 2027/28 CIP Budget to cover the First Amendment to Funding Agreement Between the Town of Los Gatos and Santa Clara Valley Transportation Authority for the State Route 17 Corridor Congestion Relief Project.

ENVIRONMENTAL ASSESSMENT:

Actions in this report are not a project defined under CEQA, and no further action is required.

Attachments:

1. First Amendment to VTA Agreement

2. VTA and Town of Los Gatos Agreement
Budget Costs
GFAR $867,000
Traffic Impact Mitigation Fund $600,000
Total Budget $1,467,000
Santa Clara Valley Transportation Authority $600,000
Total Expenditures $600,000
Remaining Budget $867,000
State Route 17 Corridor Congestion Relief Project
CIP No. 813-0237

ITEM NO. 9.

ATTACHMENT 1

FIRST AMENDMENT TO

FUNDING AGREEMENT BETWEEN

THE TOWN OF LOS GATOS
AND

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FOR THE STATE ROUTE 17 CORRIDOR CONGESTION RELIEF PROJECT This FIRST AMENDMENT TO FUNDING AGREEMENT (“First Amendment”) is made and entered into by and between THE SANTA CLARA VALLEY TRANSPORTATION AUTHORITY, a public agency organized as a special district under California law ("VTA") and the TOWN OF LOS GATOS, a municipal corporation of the State of California ("TOWN"), as of the date of the last signature set forth below (the “EFFECTIVE DATE”). Hereinafter, VTA and TOWN may be individually referred to as "Party" or collectively referred to as "Parties".

I. RECITALS
A. WHEREAS, on June 16, 2021, Parties entered into an agreement (“FUNDING AGREEMENT”) setting their respective obligations in regard to the modifications to the State Route (SR) 17 Corridor Congestion Relief Project (“PROJECT”).

B. WHEREAS, under the original FUNDING AGREEMENT, the TOWN’s initial contribution to the Project was six hundred thousand dollars ($600,000) for the development and completion of the Project Initial Document (“PID”) and Project Approval/Environmental Document (“PA/ED”) phases.

C. WHEREAS, the PID phase was completed on August 9, 2021, and the PAED is scheduled to be completed on December 31, 2025.

D. WHEREAS, the Plans, Specifications, and Estimate (“PS&E”) phase is scheduled to be completed on December 31, 2027.

E. WHEREAS, the Parties recognize the need for the continuation of PROJECT development into the next phase.

F. WHEREAS, the Parties wish to extend the term of the FUNDING AGREEEMENT to allow for completion of the final design PS&E phase of the PROJECT.

G. WHEREAS, the Parties wish to amend the FUNDING AGREEMENT to increase the TOWN's contribution from $600,000 to $1,470,000 to continue project development into the PS&E phase.

H. WHEREAS, at the December 2, 2021 VTA Board of Directors (“Board”) meeting, the Board approved the 2016 Measure B Biennial Budget and the 2016 Measure B Highway Interchange Program, a competitive grant funding program. The Measure B budget included $7,800,000 for the SR 17 Corridor Congestion Relief Project for Final Design PS&E work.

ITEM NO. 9.

ATTACHMENT 1

I. WHEREAS, the Parties wish to amend the FUNDING AGREEMENT to increase the VTA's contribution from $5,400,000 to $13,200,000 to continue project development into the PS&E phase.

NOW, THEREFORE, the Parties agree to amend the FUNDING AGREEMENT as follows:

II. AMENDED AGREEMENT

1. SECTION II, Paragraph 2 of the AGREEMENT is hereby amended to include the PS&E PROJECT phase to the AGREEMENT’S Scope of Work. Paragraph 2 shall therefore be amended and restated in its entirety as follows:
“2. Scope of Work The scope of work of this AGREEMENT (“Scope of Work”) includes but is not limited to: (i) all necessary approvals required from any and all governmental or regulatory agency or entity for the Project Initiation Document (“PID”), Project Approval/Environmental Document (“PA/ED”), and Plans, Specifications, and Estimates (“PS&E”), and (ii) those planning and design activities necessary to complete the PID, PA/ED, and PS&E.”

2. SECTION II, Paragraph 3 of the AGREEMENT is hereby amended to increase the estimates cost of the PROJECT to account for addition of the PS&E PROJECT’S phase. Paragraph 3 shall be amended and restated in its entirety as follows:
“3. Cost of Scope of Work The estimated cost of PROJECT’s PID, PA/ED, and PS&E phases is Fourteen Million Six Hundred Seventy Thousand Dollars ($14,670,000).”

3. SECTION II, Paragraph 4 of the AGREEMENT is hereby amended to increase VTA’s Financial Contribution for Cost of Scope of Work to account for addition of the PS&E PROJECT’S phase.

Paragraph 3 shall be amended and restated as follows:
“4. VTA’s Financial Contribution for Cost of Scope of Work. VTA will contribute to the PROJECT up to Thirteen Million, Two Hundred Thousand Dollars ($13,200,000) of HIGHWAY CATEGORY funds (herein after, “VTA’s Contribution”) towards the development and completion of PID, PA/ED and PS&E.”

4. SECTION II, Paragraph 5 of the AGREEMENT is hereby amended to increase TOWN’s Financial Contribution for Cost of Scope of Work to account for addition of the PS&E PROJECT’S phase.

Paragraph 3 shall be amended and restated as follows:
“5. TOWN’s Financial Contribution for Cost of Scope of Work. TOWN will contribute to the PROJECT One Million, Four Hundred Seventy Thousand Dollars ($1,470,000) (hereinafter, "TOWN's Contribution") as the non-2016 Measure B project contribution towards the development and completion of PID, PA/ED and PS&E.”

ITEM NO. 9.

ATTACHMENT 1

5. SECTION II, Paragraph 18 of the AGREEMENT is hereby amended to revise the party to be provided Notice in writing regarding this AGREEMENT, Paragraph 18 shall be amended and restated as follows:
“18. Notice. Any notice required to be given by either PARTY, or which either PARTY may wish to give, must be in writing and served by personal delivery or sent by certified or registered mail, postage prepaid, addressed as follows:

To VTA: Santa Clara Valley Transportation Authority
Gene Gonzalo, Deputy Director, Highway Capital Program Manager 3331 North First Street, Building B-2
San Jose, CA 95134-1906
To TOWN: Town of Los Gatos
Nicolle Burnham, Director, Parks and Public Works
Department of Public Works
110 East Main Street
Los Gatos, CA 95030

6. SECTION II, Paragraph 21 of the AGREEMENT is hereby amended to extend the AGREEMENT’S termination date due to the expansion of the Scope of Work and addition of PS&E PROJECT’s phase. Paragraph 3 shall be amended and restated in its entirety as follows:
“21. Term of AGREEMENT This AGREEMENT will become effective upon the Effective Date and will remain in effect through December 31, 2027. Upon written request of VTA, the Director of the Parks and Public Works for the TOWN, or a designee, is authorized to extend the term of the AGREEMENT for up to six (6) months after the initial termination date, upon written notice to VTA and without formal amendment of this AGREEMENT.

Extensions of more than six (6) months must be incorporated by the formal Amendment process in Section 22.”
[signatures continue on next page]

ITEM NO. 9.

ATTACHMENT 1
WITNESS THE EXECUTION HEREOF the day and year first hereinabove set forth. “TOWN”

TOWN OF LOS GATOS,
a California charter city and municipal
corporation
By:

Laurel Prevetti
Town Manager
Date: ________________________
“VTA”
Santa Clara Valley Transportation Authority
a public agency
By:

Carolyn M. Gonot
General Manager/CEO
Date: ___________________________
APPROVED AS TO FORM:

By:

Gabrielle Whelan
Town Attorney
APPROVED AS TO FORM:

By:

Victor Pappalardo
Deputy General Counsel

ITEM NO. 9.

DocuSign Envelope ID: 926601 B5-B2EF-428F-A 113-BOB99B349D87

FUNDING AGREEMENT

BETWEEN THE TOWN OF LOS GATOS
AND

SANTA CLARA VALLEY TRANSPORTATION AUTHORITY
FOR THE STATE ROUTE 17 CORRIDOR CONGESTION RELIEF PROJECT THIS AGREEMENT ("AGREEMENT") dated as of the last date of signature by the parties hereto, as set forth in the signature block below ("Effective Date"), is made and entered into by and between the TOWN OF LOS GATOS, a municipal corporation of the State of California ("TOWN"), and SANTA CLARA VALLEY TRANSPORTATION AUTHORITY, a public agency organized as a special district under California law ("VTA"). Hereinafter, TOWN and VTA may be individually referred to as "PARTY" or collectively referred to as "PARTIES".

I. RECITALS

1. Whereas, on June 24, 2016, the VTA Board of Directors adopted a resolution to place a ballot measure before the voters of Santa Clara County in November 2016 to authorize a one-half of one percent retail transaction and use tax ("2016 MEASURE B") for 30 years for nine transportation-related program categories; and

2. Whereas, on November 8, 2016, the voters of Santa Clara County enacted 2016 MEASURE B for 30 years to pay for the nine transportation-related program categories;

3. Whereas, the duration of 2016 MEASURE B will be 30 years from the initial year of collection, beginning April 1, 2017, and continuing through March 31, 2047;

4. Whereas, on October 5, 2017, the VTA Board of Directors established the 2016 Measure B Program ("PROGRAM") and adopted the 2016 Measure B Program Category Guidelines;

5. Whereas, the PROGRAM includes a "Highway Interchange" program category ("HIGHWAY CATEGORY"), which includes a list of eligible projects, that funds highway projects throughout Santa Clara County;

6. WHEREAS, to the PARTIES desire to implement a project to improve traffic operations and circulations, and to relieve congestion on State Route ("SR") 17 and SR 9 in the Town of Los Gatos, Santa Clara County, California, as further described herein(the "PROJECT");

7. Whereas, the PROJECT is an eligible project identified in the Program and therefore eligible for HIGHWAY CATEGORY funds;

8. Whereas, the 2016 Measure B Program Category Guidelines for the HIGHWAY CATEGORY

ATTACHMENT 2

ITEM NO. 9.

DocuSign Envelope ID: 926601 B5-B2EF-428F-A 113-BOB99B349D87 require a minimum 10% non-2016 Measure B contribution for development of PROJECT;

9. WHEREAS, on March 19, 2019, the TOWN's Council approved and supported the PROGRAM which includes improvements to SR 17 and SR 9; and

10. WHEREAS, the PARTIES wish to set forth in this AGREEMENT their respective obligations in connections with the PROJECT.

NOW, THEREFORE, in consideration of the mutual promises contained in this AGREEMENT, the PARTIES agree as follows:

II. AGREEMENT

1. PROJECT Description. The PROJECT includes the construction of a new State Route 17 -State Route 9 Interchange and a widening of State Route 17 between Lark Avenue and State Route 9 to accommodate new auxiliary lanes as shown in Attachment A, attached hereto and incorporated herein ("PROJECT LOCATION MAP").

2. Scope of Work The scope of work of this AGREEMENT ("Scope of Work") includes, but is not limited to: (i) all necessary approvals required from any and all governmental or regulatory agency or entity for the Project lnitiaion Document ("PID") and Project Approval/Environmental Document ("PAED"), (ii) those planning and design activities necessary to complete the PID and PAED.

3. Cost of Scope of Work The estimated cost of PROJECT's PID and PA/ED phases is Six Million Dollars ($6,000,000).

4. VTA's Financial Contribution for Cost of Scope of Work. VTA will contribute to the PROJECT up to Five Million, Four Hundred Thousand Dollars ($5,400,000) of HIGHWAY CATEGORY funds (herein after, "VTA's Contribution") towards the development and completion of PID and PA/ED.
2016 MEASURE B Funds Limitation. Notwithstanding any funding obligations set forth in this Agreement, 2016 MEASURE B funds must not be used to finance more than ninety percent (90%) of the Total Scope of Work Costs.

5. TOWN's Financial Contribution for Cost of Scope of Work. TOWN will contribute to the PROJECT Six Hundred Thousand Dollars ($600,000) (hereinafter, "TOWN's Contribution") as the non-2016 Measure B project contribution towards the development and completion of PID and PA/ED.

Upon execution of the AGREEMENT, VTA will invoice the TOWN for the TOWN's Contribution

ITEM NO. 9.

DocuSign Envelope ID: 926601 B5-B2EF-428F-A 113-BOB99B349D87 and, upon receipt, will deposit the TOWN's Contribution into an interest-bearing account. The TOWN must pay to VTA the amount set forth in the VTA invoice within thirty (30) calendar days after receipt of invoice.

The TOWN's Contribution and any interest earned will be considered toward the required minimum 10% non-2016 Measure B contribution for the listed cost of PROJECT as identified in the 2016 Measure B Program Category Guidelines for the HIGHWAY CATEGORY.

The TOWN's Contribution towards PS&E, ROW and Construction phases will be subject to future negotiation and mutually agreed upon written amendment.

6. Cost of Scope of Work Savings. If the PID and PA/ED are anticipated to be delivered under budget, HIGHWAY CATEGORY funds will be reduced in proportion to Town's Contribution to development and completion of the Scope of Work.

7. Use of the TOWN's Contribution. VTA will use the TOWN's Contribution and the interest earned thereon for allowable costs and expenses for the sole purpose of completing the Scope of Work, as set forth in this AGREEMENT.

8. TOWN's Obligations. The TOWN is the sponsor of the PROJECT. During the term of the AGREEMENT, the TOWN shall provide TOWN staff oversight of, and participation in, the PROJECT, and necessary and appropriate coordination with all departments of the TOWN.

The TOWN shall provide timely reviews, comments, and approvals of PROJECT's documents submitted by VTA to the TOWN. The TOWN costs to administer and participate in PROJECT as described in this AGREEMENT will not be allowable costs against TOWN's Contribution.

9. VTA's Role in PROJECT.
a. Tasks. VTA shall perform and/or be responsible for the following tasks to complete the PROJECT:
i. Service as project manager for PROJECT;
ii. Coordination with the State of California for its review and approval of PROJECT; iii. Conduct of a conceptual alternatives analysis for PROJECT; iv. Completion of PID work for PROJECT;
v. Completion of the PA/ED work for PROJECT;
vi. Support Town Staff in obtaining Town Council approval of the project; and vii. Completion of PS&E, ROW and Construction work for the PROJECT, subject to future funding availability and agreement amendment.

Costs and expenses to perform these tasks shall be considered allowable costs and expenses pursuant to this AGREEMENT.
b. Consultants. VTA may retain design consultants to perform any of the functions listed in

ITEM NO. 9.

DocuSign Envelope ID: 926601 B5-B2EF-428F-A 113-BOB99B349D87 Section 9(a). VTA's administrative costs to procure and manage consultant agreements as well as the actual costs of such consultants shall be allowable costs pursuant to this AGREEMENT. c. Other Project Management Duties VTA shall include the TOWN staff as an active participant within VTA's project management process, hold periodic meetings as agreed upon by the project team(s) to assess the progress of development for PROJECT and address PROJECT issues as they arise. VTA shall also prepare regular reports on activity and progress of PROJECT for the TOWN.
d. Project Cost Updates/ Amendments to TOWN's Contribution. VTA shall actively monitor actual expenditures for PROJECT to ensure that TOWN's Contribution is used to pay for allowable PROJECT expenditures. If, at any time, planned PROJECT expenditures are projected to exceed the TOWN's Contribution, VTA shall immediately notify the TOWN of such facts. The Parties shall then have the following options:
i. Revise the PROJECT scope in accordance with the available funds, which revision can be accomplished only by written amendment mutually agreed upon by the Parties and approved by the TOWN'S Town Council;
ii. Seek additional funding to complete scope of PROJECT by revising the TOWN's Contribution to be accomplished only by written amendment to this AGREEMENT; iii. VTA may formulate and implement a strategy to continue the PROJECT to the satisfaction of the TOWN'S Director of Parks and Public Works. iv. The PARTIES may terminate this AGREEMENT which can be accomplished by either PARTY giving written notice to the other PARTY of such termination consistent with Section 12 below.

10. Compliance with Governmental Requirements. The PARTIES shall comply with all applicable laws and regulations pertaining to the AGREEMENT.

11. Compliance with 2016 Measure B Requirements. The PARTIES must comply with and must ensure PROJECT compliance with all 2016 MEASURE B requirements set forth in the 2016 Measure B Program Category Guidelines for the HIGHWAY CATEGORY as identified in Attachment B, attached hereto and incorporated herein.

12. Written Termination. In addition to termination pursuant to the terms of the preceding section, this AGREEMENT may be terminated upon mutual written agreement of the PARTIES.

13. Refund of TOWN's Contribution. Any balance of TOWN's Contribution, including interest, if applicable, remaining after the first to occur of: (a) expiration of the term of this AGREEMENT, or (b) termination of this AGREEMENT in its entirety as provided in Sections 9.d.(iv) and 12 above, or (c) completion of PROJECT, less any amounts necessary to pay for eligible expenses incurred prior to the date of completion of PROJECT or the effective date of the expiration or termination of the AGREEMENT, shall be refunded to the TOWN. VTA shall refund to the

ITEM NO. 9.

DocuSign Envelope ID: 926601 B5-B2EF-428F-A 113-BOB99B349D87 TOWN such remaining balance, if any, within thirty {30) calendar days after the effective date of completion of PROJECT or sooner termination of the AGREEMENT. For purposes of this AGREEMENT a PROJECT shall be deemed complete only upon concurrence by both PARTIES of such completion.

14. Audit and Record Retention. The TOWN may audit the expenses incurred in the performance of this AGREEMENT. VTA shall retain all records related to the PROJECTS for three (3) years after the completion of PROJECT. During this period, VTA shall make these records available within a reasonable time to the TOWN for inspection upon request.

15. Parties' Representatives. The General Manager of VTA or the General Manager's designee is hereby made the representative of VTA for all purposes under this AGREEMENT. The Director of the Parks and Public Works for the TOWN or the Director's designee is hereby made the representative of the TOWN for all purposes under this Agreement.

16. Indemnification.

A. Neither VTA nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by the TOWN under or in connection with any work, authority or jurisdiction associated with the AGREEMENT.

In addition, pursuant to Government Code §895.4, the TOWN shall fully indemnify and hold VTA harmless from any liability imposed for injury (as defined by Government Code §810.8) arising out of or relating to the TOWN's negligence, recklessness, or willful misconduct under or in connection with any work, authority or jurisdiction delegated to the TOWN under this AGREEMENT.

B. Neither the TOWN nor any officer or employee thereof shall be responsible for any damage or liability occurring by reason of anything done or omitted to be done by VTA under or in connection with any work, authority or jurisdiction associated with the AGREEMENT. In addition, pursuant to Government Code §895.4, VTA shall fully indemnify and hold the TOWN harmless from any liability imposed for injury (as defined by Government Code §810.8) arising out of or relating to VTA's negligence, recklessness, or willful misconduct under or in connection with any work, authority or jurisdiction delegated to VTA under this AGREEMENT.

17. No Waiver. The failure of either PARTY to insist upon the strict performance of any of the terms of this AGREEMENT shall not be deemed a waiver of any right or remedy that either PARTY may have, and shall not be deemed a waiver of the PARTY's right to require strict performance of all of the terms thereafter.

18. Notice. Any notice required to be given by either PARTY, or which either PARTY may wish to give, must be in writing and served either by personal delivery or sent by certified or registered mail, postage prepaid, addressed as follows:

ITEM NO. 9.

DocuSign Envelope ID: 926601 B5-B2EF-428F-A 113-BOB99B349D87 To VTA:

To TOWN:

Santa Clara Valley Transportation Authority
Gene Gonzalo, Hi ghway Capital Program Manager
3331 North First Street, Bldg. B-2
San Jose, CA 95134-1906
Town of Los Gatos
Matt Morley, Director, Parks and Public Works
Department of Public Works
110 East Main Street
Los Gatos, CA 95030
Notice will be deemed effective on the date personally delivered or, if mailed, three (3) days after deposit in the United States mail.

19. Dispute Resolution. If a question arises regarding interpretation of this AGREEMENT or its performance, or the alleged failure of a PARTY to perform, the PARTY raising the question or making the allegation must give written notice thereof to the other PARTY. The PARTIES must promptly meet in an effort to resolve the issues raised. If the PARTIES fail to resolve the issues raised, alternative forms of dispute resolution, including mediation or binding arbitration, may be pursued by mutual AGREEMENT. It is the intent of the PARTIES to the extent possible that litigation be avoided as a method of dispute resolution.

20. Entire AGREEMENT This AGREEMENT constitutes the entire understanding between the PARTIES pertaining to the subject matter contained herein and supersedes all prior or contemporaneous agreements, representations, and understandings of the PARTIES relative thereto.

21. Term of AGREEMENT This AGREEMENT will become effective upon the Effective Date and will remain in effect through June 30, 2024. Upon written request of VTA, the Director of the Parks and Public Works for the TOWN or a designee is authorized to extend the term of the Agreement for up to six (6) months after the initial termination date, upon written notice to VTA and without formal amendment of this Agreement. Extensions of more than six (6) months must be incorporated by the formal Amendment process in Section 22.

22. Amendments Future amendments or changes to this AGREEMENT must be made by mutual written agreement of the PARTIES. Whenever reasonably practicable, the PARTY proposing the amendment will provide the other PARTY with a written request to amend this AGREEMENT ninety (90) calendar days prior to the desired effective date of such amendment.

23. Warranty of Authority to Execute AGREEMENT. Each PARTY to this AGREEMENT represents

ITEM NO. 9.

DocuSign Envelope ID: 926601 B5-B2EF-428F-A 113-BOB99B349D87 and warrants that each person whose signature appears hereon has been duly authorized and has the full authority to execute this AGREEMENT on behalf of the entity that is a PARTY to this AGREEMENT.

24. Severability. If any term, covenant, condition or provision of this AGREEMENT, or the application thereof to any person or circumstance, is, to any extent, held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions and provisions of this AGREEMENT, or the application thereof to any person or circumstance, will remain in full force and effect and will in no way be affected, impaired, or invalidated thereby.

WITNESS THE EXECUTION HEREOF the day and year set forth below. "TOWN": TOWN OF LOS GATOS,
a California charter city and municipal
corporation
By:�••;� [ �f!p�\�ffi
Town Manager
6/16/2021
Date: _____________ _
APPROVED AS TO FORM:

Robert Schultz
Town Attorney
APPROVED AS TO CONTENT:
er=·;;;.
allf're1�Pfe4f4
Town Parks and Public Works Director

"VTA": SANTA CLARA VALLEY
TRANSPORTATION AUTHORITY, a public
agency
G
�'"'""""
By: ��4��
Evelynn Tran
General Counsel and
Interim General Manager/CEO
6/15/2021
Date: _____________ _
APPROVED AS TO FORM:
�DocuSigned by:
f::�lsl
Victor Pappalardo
Deputy General Counsel

ITEM NO. 9.

DocuSign Envelope ID: 926601 B5-B2EF-428F-A 113-BOB99B349D87 Attachment A:

Project Location Map
LOS·G'ATOS
L

0w 1

ITEM NO. 9.

DocuSign Envelope ID: 926601 B5-B2EF-428F-A 113-BOB99B349D87

ATTACHMENT B
Highway Interchanges Program Guidelines
Definition from Resolution No. 2016.06.17
To fund highway projects throughout the valley that will provide congestion relief, improved highway operations and freeway access, noise abatement, roadway connection overcrossings, and deploy advanced technology through Intelligent Transportation Systems {ITS}.

Total Funding
• $750 million in 2017 dollars.

Distribution
• VTA Board of Directors will allocate funding on a 2-year cycle. • Funds will be distributed through two programs: capital projects and noise abatement. • Funds will be available on a reimbursement basis.

Implementation
• VTA staff will work with local agency staff to identify and prioritize projects in the Highway Interchange Program Candidate List on 2016 Measure B. The following criteria will be considered:
o Project Readiness
o Level of local contribution
o Geographic consideration
• VTA staff will work with member agency staff to advance projects. • Noise Abatement projects will be a separate category within the Highway Interchange Program.
o Projects identified in the 2011 VTA Soundwall Study will receive higher consideration during Call for Projects.
• Funds will be available on a reimbursable basis. Agencies may submit invoices to VTA on a monthly, quarterly or annual basis. Invoices must be submitted within one year of the date posted on the contractor's invoice.
• The cost of each phase of a proposed Highway Interchanges project will be finalized with execution of agreements with VTA for project funding.

Criteria
• Only VTA, Caltrans and Member Agencies can serve as an implementing agency. • Only projects and programs currently listed on 2016 Measure B are eligible.

Requirements
• Projects require a minimum 10% non-2016 Measure B contribution. • Reporting requirements will be detailed in agreements executed with VTA for project funding.
• All applications must include a delivery schedule.
• All projects must comply with VTA's Complete Streets Reporting Requirements. • All collateral material will be required to display a 2016 Measure B logo.

ITEM NO. 9.

MEMORANDUM
TO: Evelynn Tran, General Counsel and Interim General Manager/CEO FROM: Gene Gonzalo – Highway Program Manager
DATE: May 24, 2021
SUBJECT: General Manager’ s signature for Funding Agreement between Town of Los Gatos and VTA for the State Route 17 Corridor Congestion Relief Project ( P-1138) On January 10, 2019, the VTA Board of Directors authorized the General Manager to execute cooperative agreements with Cities and Towns of Santa Clara County for planning, environmental, design, right-of-way, and construction phases of 2016 Measure B roadway projects. The 2016 Measure B Program includes the State Route ( SR) 17 Corridor Congestion Relief Project located in Town of Los Gatos.

This Funding Agreement between Town of Los Gatos and VTA is for $600,000 for VTA to perform the preliminary engineering and environmental clearance phases of the project development process. An amendment to this agreement will be needed for the subsequent final design, right- of-way, and Construction phases.

The Funding Agreement between Town of Los Gatos and VTA will establish roles and responsibilities to complete the SR 17 Corridor Congestion Relief Project. This Funding Agreement will be executed upon receipt of VTA signatures.

Enclosures:

Funding Agreement
Board Memorandum dated January 10, 2019
Submitted by: Chris Lillie
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

Sa nta C lara Va lley
Transport at ion
Authority
Date :

Current Meeting:

Board Meeting:

January 3, 2019
January I0, 2019
January 1 ,~,, 2919
1 r 1 ',I

BOARD MEMORANDUM
TO : San ta Clara Valley Transportation Authori ty
Board of Directo rs
THROUGH: General Manager, Nuria I. Fernandez
FROM: Chief Engineering & Program De livery Officer, Carolyn M. Gonot SUBJECT: VTA Highway Program Cooperative Agreement
I I
Policy-Related Action: Yes Government Code Section 84308 Applies: No

ACTION ITEM
RECOMMENDATION:

Authorize the General Manager to execute Cooperative Agt·eements with:

I. California Department ofTransportation ( Cal trans);

2. Cities and Towns of Santa Clara County and the County of Santa Clara; and

3. State and regional agencies such as the Ca lifornia Highway Patrol ( CHP) and Metropolitan Transportation Commission ( MTC)
for planning, environmental, design, right of way , and construction phases of roadway projects.

BACKGROUND:

The VT 'A Board of Directors adopted the Valley Transportation Plan ( VTP) 2040 in February 2015 followed by submittal of VTP projects for inclusion in the Regional Transportation Plan RTP) adopted by the Metropolitan Transportation Commission ( MTC). Funding for these projects is anticipated from the State Tra nsportation Impro veme nt Program ( STJP), the 201 6 Measure B sales tax, local contributions, State grants, Federal grants , and other sources.

On October 5, 2017 , the Board of Directors adopted a resolution estab lishing the 2016 Measure B Programs and the 2016 Measure B Program Category Guide lines, outlining the implementation of 2016 Measll!' e . The Measure includes the following roadway- related funding :
750 mil lion for the Highway Interchanges Program , $350 million for the State Route 85 Corridor , and $ 750 million for the County Expressways Program .

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CERTIFIED COPY
PPD201901- 1059
Rcvd 17 Jan 2019
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

DISCUSSION:

VTP 2040 identifies a list ofroadway projects to improve the transportation network in Santa Clara County. Attachments A and B list the roadway projects that are included in the RTP and the 2016 Measure B. With funding becoming available through various SB I programs and 2016 Measure B, many ofthese projects will begin to be delivered .

The staff recommendation is to authorize the General Manager to execute cooperative agreements for roadway improvement projects with Caltrans , local agencies, regional agencies such as CHP and MTC , and regulatory agencies. The cooperative agreements would cover all phases of projects including planning, project approval and environmental document, design, right ofway, construction, landscaping and project closeout. The reason for this action is to streamline the process to initiate the start of projects that would be especially useful in such cases as with Senate Bill (SB) I funds where there are strict requirements for the award of contracts that could hinge on the ability to get cooperative agreements in place.

In the case ofhighway projects with significant involvement by VTA and Caltrans , the agreements would establish the roles and responsibilities ofVTA and Caltrans for project phases through construction . The agreements could also establish grant funding reimbursement parameters .

For VTA and regulatory agencies , the agreements could establish VTA's commitments such as for environmental mitigation measures , VTA compliance to regulatory agency standards and policies, and VTA reimbursement of services provided by the regulatory agency.

The local agency agreements could identify local agency contributions toward a project and the roles and responsibilities of VTA and the local agency relative to the subject project.

The VTA Administrative Code Chapter 5 establishes the powers and duties ofthe General Manager ( GM) including the delegated authority of the GM to execute grant agreements for amounts not to exceed $5,000 ,000 for projects and programs that are identified and included in VTA' s budget. Ifagreements are beyond the OM' s authority under the administrative code , GM authorization to execute such agreements would be submitted to the Board for approval.

ALTERNATIVES:

An alternative to the recommendation ofthis memorandum is for staffto appear before the VTA Board of Directors to request GM authorization to enter into agreements for each individual project as has been the practice in recent years . This approach has worked due to the lower number ofroadway projects implemented by VTA without a direct steady source offunding that could be leveraged to fund roadway projects.

The potential to have steady funds from SB I, Measure B and other sources means that the backlog of roadway improvements as shown in Attachments A and B could swell the number of cooperative agreements that are needed to be executed. The requested GM authority for cooperative agreement approval would put into place an authority similar to the one that was implemented for the 1996 Measure B Highway Program.

6.10 CERTIFIED COPY

DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

FISCAL IMPACT:

There are no direct fiscal impacts as a result ofthis action. However, the individual agreements could have a fiscal impact. To the extent that agreements are beyond the authorization ofthe General Manager, they will be brought to the Board for approval.

STANDING COMMITTEE DISCUSSION/ RECOMMENDATION:

The Congestion Management Program and Planning Committee heard this item at their December 20, 2018 meeting recommended it to move forward to the VTA Board of Directors for approval.

Prepared by: Lam Trinh - Project Manager
Memo No. 6665
ATTACHMENTS:

Attachment A- VTI' 2040 High way l'rugram Projects ( PDF) Attachemcnt B- VTA 2016 Measure B Hi ghway Program ( I'DF) r· ·:,:,.' ~~ ·.• J :'-:" fctr'.::'Oi'iG instrument
r':.: .::~; 1(: :.\ clC[ ,;(. p~ ··) r t11: e> or iiJ ma l Jr; ': lc: n the ~;<:crc; tar y ol tile Boa rd of

6.10 L~~~
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Page3of3
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

ATTACHMENT A - VTP 2040 HIGHWAY PROGRAM PROJECTS
I 6. 10 .a
CHAPTER TWO INVESTING IN OUR tot ol\t

PALO ALTO

LOS ALTOS
HillS

MOUNTAIN
VIEW
LOS
ALTOS

SUNNYVALE
South
MORGAN ~ ILL County

CUPERTINO

SARATOGA
SANTA
CLARA
MONTE
SERENO
Figu.re 2. I Transit projects in Santa. Clam County. Source: VTA Highway System
Program Development
The VTP 2040 Highway Program includes ongoing efforts
to expand the express lanes network, improvements to
system operations, increased efficiency in key corridors, and enhancements that relieve congestion, alleviate
bottlenecks, and increase safety. Capacity increasing projects are pursuedifno otherfeasible alternative is found .

Highway Capital Program
Seventy-six projects, representing approximately $5 .6
billion incosts, were evaluated using the Board adopted Highway Project Prioritization criteria, which are designed to allot fair consideration to the fullrange oflow-cost, high utility improvements as well as higher cost mainline capacity and systems enhancements . Out ofthis unconstrained list the financially constrained projects were derived. The financially constrained project list consists offifty-two projects totaling $3. 1 billion dollars ofimprovements ( Figures LOS
GATOS

MILPITAS
C:==~ 41.,! in

2.2 and2.3), including $2.3 billion for the comprehensive Silicon Valley Express Lane (SVEL) network in Santa
Clara County. Revenues from the Express Lane Program
will fund both operations and capital improvements.

VTA has legislative authority to implement and operate
express lanes in the SR 237 and SR 85/US 101 corridors, and they are considered the highest priority express
lanes projects in Santa Clara County.

Over the last several years, VTA and Caltrans have
conducted highway planning studies to identify projects for development and that have been included in the VTP
planning process. The highway projects in VTP 2040
focus on improving the existing highway network and
were chosen because they address congestion, improve
efficiency, and reduce commute times , all ofwhich help to reduce greenhouse gases , vehicle miles traveled, and enhance the driving experience for travelers.

VAllEY TRANSPORTATION PlAN 2040 39
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.
6 .10. a
Table 2.3a Financially Constrained Express Lanes/Toll Facilities Projects in Santa Clara County VTP R p . 1. I d D . . Cost
ID oute ro1ect 11 e an escnphon 12013 $ M)
Hl SR 85 SR 85 Express lan es: US 101 ( South San Jose to Mountoin View ) $ 181. 0 Converts 24 miles of the existing high-occupancy vehicle (HOY) lanes along SR 85 to expre ss lanes . The proposed facili ty w ill all ow si ngle occupan cb vehicles access to the express lanes bk paying a toll. An additional express lane will e added to create two-lane express lanes a ong a portion of the corridor. The project will also include the continuation of the express lan es for three miles to US 101 in So uth San Jose , thro ug h th e SR 85 / US 101 Interchange, for a total of 27 miles.

H2 us 101 Convert Existing HOV lanes to Express lanes on US 101 from Wh ipple Ave. in $ 465. 0 San Mateo County to Cochrane Rd. in Morgan Hill
Convert 34 miles of the existing HOY lane on US 101 between Cochrane Rd . and W hipple Ave. in San Mateo County to express lane o peration . The proposed facili~ w ill implement two lanes of ex press lanes w ithin the exis ting footprint to accommodate t e projected tra vel demand for US 101.

H3 SR 237 SR 237 Exp ress lane s: North First St. to Math ilda Ave. $ 20.0 Con vert HOY lanes to ex pres s lanes on SR 237 betwe en North First St . and Mathilda Ave.

H4 SR 87 SR 87 Express lan es : SR 85 to US 101 $ 35. 0 Con ve rt HOY lanes to ex pres s lane s on SR 87.

H5 SR 237 SR 237 Express lanes: Mathi lda Ave. to SR 85 $ 81.0 Build ne w ex press lane s on SR 237 between Mathilda Ave . and SR 85.

H6 1-680 1-680 Northbound Express lane: Calaveras Blvd. to Alameda County line $ 36.0 W iden to add an express lane on 1-680 Northbound between Calaveras Blvd . and the Alameda County Line.

H7 1-880 1-880 Express lanes: Alameda County line to US 101 $ 23. 0 Convert existing HOY lanes to express lanes on 1-880 between the Alameda County line and US 101.

H8 us 101 US 101 Express lanes: Cochra ne Rd. to Masten Ave. $ 107. 0 Build new ex pres s lanes on US 101 between Cochrane Rd . and Masten Ave .

H9 us 101 US 101 Express lanes: Masten Ave . to lOth St. $ 68.0 Build new ex press la nes on US 101 between Masten Ave. and 1Oth St.

HlO us 101 US 101 Express La ne s: 1Oth St. to SR 25 $ 50.0 Build new ex press lanes on US 101 between 1Oth St. and SR 25.

Hll 1-280 1-280 Express Lane s: Lela nd Ave. to Magda lena Ave. $ 58 .0 Con vert ex isting HOY lane s to ex press lanes on 1-280 between Leland Ave. and Magdalena Ave.

H12 1-280 1-280 Express lanes: US 101 to leland Ave. $ 25.0 Co nvert one general purpose la ne to express la nes in ea ch d irection o n 1-2 80 be tween US 101 and Leland Ave.

Hl3 1-280 1-280 Express lanes: Southbound El Monte Ave. to Magda lena Ave. $ 14.0 Build new express lanes on 1-280 Southbound from El Monte Ave . to Magdalena Ave .

H14 1-680 1-680 Express lanes: Calaveras Blvd . to Montague Expwy. $ 20.0 Convert one general ~rpose lane to express lanes in each direction on 1-680 between Calaveras Blvd . and ontague Expwy.
40 VA LL EY TRA N SPORTATI ON A UTHOR ITY
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

I 6.10. a
CHAPTER TWO INVESTING IN OUR 1 o 1ol\c
Table 2.3a. continued Financially Constrained Express Lanes/Toll Facilities Projects in Santa Clara County VTP R p . T' I d D . . Cost
10 oute ro1ect It e an escnpt1on ( 2013 $ MJ
H15 1-880
H16 SR 17
H17 1·680
H18 SR 152
1-880 Expre ss lanes: US 101 to 1-280
Build new express lane on 1-880 between US 101 and 1-280.

SR 17 Express lanes
Convert one lane to express lanes between 1-280 to SR 85 . 1-680 Express lanes: Montague Expwy. to US 101
Convert one lane to express lanes between 1-280 to SR 85.

New SR 152 Alignment: SR 156 to US 101
Project includes US 101 widening from Monterey St. to the SR 25/US 101 interchange; new interchange at SR 25 / US 101; and a new SR 152 alignment that will be operated as a toll facility from US 101 to SR 156 . SR 152 ilmprovements includ e road way and acces s control improvements between SR 156 and the County line , and new eastbound truck-climbing lanes over Pacheco Pass. 186. 0

30.0 35.0
848.0
EXPRESS LANES PROJECTS TOTAL $ 2,282.0 M

LOS ALTOS
HILLS
LOS

MOUNTAI N

SU NNYVALE
MO NTE

SER ENO
LOS
GATO S
SAN
JOSE
0 Figu re 2. 2 Express lane projects in San ta Clara. Cou. nty. Source: VTA VALLEY TRANSPORTATION PLAN 2040 4 1
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

6.10. a
Table 2.3b Financially Constrained Highway Projects in Santa Clara County VTP R p . y· I d D . . Cost
ID oute ro1ect II e an escnpllon ( 2013 $ M)
H19 us 101 Doub le lane Sou thbound US 101 off-ramp to Southbound SR 87 $ 1.0 Widen the ex isting ramp by prov iding a secondar y lane on the off- ramp at SR 87.

H20 SR 17 SR 17 Southbound / Ham ilton Ave. Off-Ramp Wid ening $ 1.0 Widen off-ramp to improve operations on Southbound Route 17 at Hamilton Ave .

H21 SR 85 SR 85 Northbound to Eastbound SR 237 Connector Ramp and Northbound SR 85 $ 30.0 Auxil iary lane
W iden off-ramp from Northbound SR 85 to SR 237 Eastbound to two lanes ; construct au x iliary lane on Eastbound SR 237 between SR 85 on-ramp to Middlefield Rd .; construct braid off- ramp on Eastbound SR 237 between SR 85 and Dana St. These improvements w ill address the current congestion that ex tends from SR 23 7 to SR 85 El C amino Real interchange during th e AM peak peri od. In addition , it w ould also remove the weave between traffic on Eastbound SR 237 exiting to Dana St . with traffic from Northbound SR 85 .

H22 SR 85 SR 85 / Cottle Rd. Inte rc hange Improve me nts $ 6 .0 Reconfigure ramp interchange with minor improvements at SR 85 and Cottle Rd.

H23 SR 87 SR 87 /Capitoi / Narvaez Interchange Improvements $ 12.0 Reconfigure the SR 87 in terch ange , w ith pos sible adju stment at Narvaez Ave.

H24 us 101 Montague Expwy. and US 101 Interchange Improvem ents $ 17.0 Con struct partial interch ange at US 101 and Montague Ex pwy.

H25 us 101 US 101 Southbound / Trimble Rd./ De la Cruz Blvd./ Centra lExpwy. lnterchange $ 39.0 Improvements
Modify existing loop cloverleaf ramp from Southbound US 101 to Trimble Rd. into a partial cloverleaf ramp (diagonal ramp with signalized intersection). Modify the Southbound US 10 1 on- ramp from De La C ruz Bl vd ./ Central Ex pwy. to 1 mi xed flo w lane , 1 HOY lane with ramp metering equipment. The on-ramp w ill be modified to imflrove merging onto Southbound US 101 . The De La Cruz Bl vd . bridge across US 101 wi I be widened from four to six lanes . The segment between De La Cruz Blvd ./Trimble Rd . intersections to bridge overcrossing will be widened by an additional lane .

H26 us 101 US 101 / Blossom Hill Rd. Interchange Improvements $ 23.0 Reconfigure interchange at US 101 / Bl ossom Hill Rd . in San Jos e; modification s are on the local road w ay sy stem , includ ing w idening of Blossom Hill Rd . over US 101.

H27 us 101 US 101 / Mabury Rd ./ Taylor St. Interchange Improvements $ 57.0 Con struct a ne w interchange w ith full access to the US 101 free w ay. The project w ill prov ide access to US 101 for the heavy local co mm uter traffic that currently is forced to use the congested Old Oakland Rd . interchange ( north of Mabury Rd .). The interchange w ould also act as the primary access to the future Berryessa BART station .

H28 us 101 US 101 / Old Oakland Rd. Interchange Improvements $ 23.0 Interchange improvements at US 101 and Old Oakland Rd . and poss ible w idening on Old Oakland Rd.

H29 us 101 US 101 / Hellyer Ave. Interchange Improvements $ 16.0 Widening the overcrossing from two to four lanes and installing traffic signals at each of the two off- ramp intersections. Widen the intersection w ith the southbound on- and off-ramps to include a second eastbound through- lane and a separate left turn pocket.

Widen the southbound off-ramp will be widened to provide two left-turn lanes . At the intersection of the northbound off-ramp , widen Hellyer from one to two lanes in the eastbound direction and the westbound left turn pocket. 42 VA LL EY TR A N SPOR TATIO N A UTH OR ITY
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

I 6 .10 .a
CHAPTER TWO INVESTING IN OUR 1 o 1ol\c
Table 2.3b continued Financially Constrained Highway Projects in Santa Clara County VTP R p · T' l dO.. Cost
10 oute ro1ect 1f e an escnpflon (
20 13 $
M)
H30 us 101 US 101 / Zenker Rd./Skyport Dr./Fou rth St. Interc hange Improvem ents $ 1 04.0 Constructs a new interchange connecting lanker Rd . and Old Bayshore Hwy. with North Fourth St. and Sky port Drive at US 101 . The interchange w ill provide an overcro ssing across US 101 to improve limited ex ist ing connecti vity across US 101 to the North San Jose emplo( ment centers. In addition , the inter change w ould improve ac cess to Min eta lnternationa Airpo rt ( San Jose) from US 101 . The ex ist ing intersecti ons at North First St . and Skyport Drive, North Fourth St . and Old Bayshore Hwy., Northbound US 10 1 on - and off-ramp , N orthb o und US 10 1 off-ramp to Brokaw Rd. w ill be mod ifi ed to construct this interchange .

H31 us 101 US 101 /Buena Vista Ave. Interchange Improvements $ 31.0 Constructs a full interchange at US 101 and Buena Vista Ave . The interchange includes a fl yover southbound o n-ramp to braid w ith the existing truck exit at the CHP In specti on Station. Off-Ramp diagonal ramps wi ll be co nstructed .

H32 SR 237 SR 237 Westbo und On -Ra mp at Mi ddlefield Rd. $ 13.0 Construct westbound loop on-ramp from Northbound Middlefield Rd . to Westbound SR 237; eliminates signalized intersection at Middlefield Rd./ Wes tb ound SR 237 diaJconal on -ramp ; and realigns frontage road to form a new intersection at Mi dlefield Rd ./ Fe rgu son Dri ve .

H33 SR 237 SR 237 / Math ilda Ave. and US 101 / Mathilda Ave. Inte rchange Improvements $ 17 .0 Modify US 101 / Mathilda and SR 23 7 / Mathilda interchanges , reducing to one signalized intersection and increa sing intersection spacing in the Mathilda Ave./ SR 237 interchange area . Project to include ramp improvements, addition of auxiliary lanes , and con struct ion of ne w ramp configuration s.

H34 SR 237 SR 237 /North First St. Interchange Improvements $ 2.0 Interchange improvements at SR 237 and North 1st St.

H35 1-280 1-280 Nort hbound: Second Exit Lan e ta Foothill Expwy. $ 2.0 Construct a second ex it lane from northbound 1-280 to Fo oth ill Ex pwy.

H36 1-880 1-880 / Montague Expwy. lnterchang e Improvement $ 14.0 Con struct partial interchange at 1-880 and Montague Ex pw y., includ ing improvements on Montague .

H37 SR 152 SR 152 Ramp / Intersectio n Improvements $ 10 .0 Construct eastbound right- turn lane at the intersection of SR 152 and Fra zi er Lake Rd.; w iden SR 152 at the intersect ion of Blo omfield Rd .; co nstruct additional turn lanes at SR 152 and Watson ville Rd.; signalize an d w iden SR 152 so uth leg and Ferguson Rd. from two to four lanes .

H38 SR 237 SR 237 /EI Ca mino Real/ Gra nt Rd. Intersection Improvements $ 5.0 Widen Westbound SR 237 w ithin the ex isting median to extend both of the left- turn lanes; lengthen the Northbound El Camino Real right-turn lane onto SR237 starting the lane at Yuba Dr ive ; w iden the Southbound El Camino Real left- turn lane w ithin the exi sting median ; and co nstruct a ri g ht-turn lane o n Southbo und El Ca mino Rea l fo r traffi c accessing Westbound Grant Rd .

H39 1-280 1-280 Downtown Access Improvements between 3rd St. and 7th St. $ 29 .0 Reconstruct the ex ist ing 1-280 Northbound off- ramp at 7th St . to connect directly to 3rd St .; the 1-280 Northbound on- ramp from 4th St . w ill be reconstructed to cross over the new off-ramp. The existing off-ramp connection to 5th St . will be eliminated .

H40 SR 85 SR 85 / EI Camino Reaii / C Improvements $ 23. 0 Construct SR 85 auxiliary lanes between El Camino Real and SR 237, and SR 85/ El Camino Real interchange improvements.

VALLEY TRANSPORTATION PLAN 2040 43
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

6.10. a
Table 2.3b continued Financially Constrained Highway Projects in Santa Clara County VTP R p . y· I d D . . Cost
ID oute ro1ect 1t e an escnphon (
20 13 $
M)
H41 1-680 1-680 / Montcgue Expwy. lnterchange Improvement $ 26.0 Construct partial interchange at 1-680 and Montague Expwy. including improvements on Montague Expwy.

H42 us 101 US 101 Southbound Improvements : San Antonio Rd. to Charleston Rd ./ Rengstorff Ave. $ 22.0 Con struct So uthb ound improvements on US 101 from San A nto nio Rd . to Charles to n Rd./ Rengstorff Ave.

H43 us 101 US 101/ 0regon Expwy./ Embarcadero Rd . Improvements $ 55.0 C onstru ct improvements to US 101 / Oregon Ex pwy./ Embarca dero Rd . interchang e .

H44 SR 237 SR 237 Westbound to Southbound SR 85 Connector Ramp Improvements ( Including SR $ 40.0 85 Auxi liary lanes between El Camino Real and SR 237)
Construct a collector/ di stributor road in the w estbound directi on on SR 2 37 from the Central Expwy. overcrossing to SR 85. W iden off-ramp from westbound SR 237 to Southbound SR 85 to two lanes. Add auxiliary lane in the Southbound direction between SR 2 37 an d th e El Camino Real interc ha nge on SR 85.

H45 1-280 1-280 Northbound Braided Ramps between Foothill Expwy. and SR 85 $ 44.0 Condu ct prelim inary engin eering , en vironmental studie s an d design to w iden the ex isting off-ramp to Footh ill Ex pwy. from Northbound 1-280 from a single- lane ex it to a two- lane exit opening at 1-2 80. This solution is expected to improve the existing weaving traffic through this area .

H46 1-280 1-280 / Senter Rd. Interchange $ 50.0
Extend Senter Rd. and construct new on-/ off-ramps and modify existing on-/ off-ramps into a co llector / distributor ramp sys tem.

H47 SR 237 SR 237 Eastbound Auxiliary lanes: Mathilda Ave. to Fair Oaks Ave. $ 7.0 Construct SR 2 37 Eastb ound ; bu ild au xi liary lanes between M athilda Av e . to Fa ir Oaks Ave .

H48 us 101 US 101 Southbound Auxiliary lane: Great America Pkwy. to lawrence Expwy. $ 3.0 Construct auxiliary lanes on US 101 from Great America Pkwy. to lawrence Expwy.

H49 us 101 Southbound Auxiliary lane Improvement Between Ellis St. and SR 237 $ 4.0 Construct a US 101 Southbound auxiliary lane from Elli s St . interchange to Eastbound Route 237 . The project will reduce queue backup onto Southbound US 101 mainline during the mo rning pea k period by provid ing additio nal storage . The pro ject ma y al so include Traffi c O perati on Systems ( TO S) elements.

H50 All Sound Walls $ 15.0
Con struct sound w all s on major highw ay s an d expres sw ays . Pro jects to be determ ined through so und w all stud y.

H51 All Hwy. Transportction Operations System $ 50.0
Transportation Operations Systems installation and maintenance for metering ramps and other ramp improvem ents.

HIGHWAY PROJECTS TOTAL $ 792.0M
44 VA LLE Y TRANSPORTAT ION AUTHORITY
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

PALO ALTO

MOUNTAIN

LOS ALTOS
HILLS
LOS
ALTOS
South
MORGAN HILL County
GILROY
VIEW

SUNNYVALE

CUPERTINO

SARATOGA
MONTE
SERENO
Figure 2.3 Highway projects in Santa. Clara. County. Source: VTA Local System
Program Development
The Local System Program area is a new organizational
structure in the VTP document and encompasses a range
of projects. The projects in this new program area have in the past been included in otherVTP ProgramAreas, and
are now consolidated into three primary categories:

County Expressways
Local Streets and County Roads
Multimodal Transportation Investments (MTI)
The Local System Program area is intended to maximize funding flexibility and opportunities, and create a planning framework that encourages cities and county
to look for project synergies- with the ultimate goals
of improved project scope, cost savings, and increased
administrative efficiency . Local System projects are
largely generated by VTA's Member Agencies, with
I 6.10. a
CHAP TER TWO INV ESTING IN OUR 1 vivi(L

CAMPBELL
LOS
GATOS
SAN
JOSE

MILPITAS
0 0.--...::===::;;\. f.ll,
input from the communities, and address deficiencies
within the local street and county road system. The
Local System Program areas are each discussed in more
detail below.

County Expressways
Santa Clara County is the only County in California
operating a comprehensive expressway system within the
urban areas. In 2008, the County ofSanta Clara adopted
its Comprehensive County Expressway Planning Study
which provides a long-term plan for the improvement
and maintenance ofthe expressway system. In 2013, the
County initiated a comprehensive update to this plan,
reflecting new conditions and opportunities, and addressing unresolved issues identified in the 2008 Study. This new plan; however, will not change the County's expressway project VTP 2040 submittals but will be the basis for the expressway project submittals in the next VTP.

VALLEY TRANSPO RTATION PLAN 2040 45
DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.
1 s.1o.b

ATTACHMENT B
VTA 2016 MEASURE B HIGHWAY PROGRAM
US I0 I Improvements in the cities of Palo Alto and Mountain View to address regional connectivity and circulation between San Antonio Road and Charleston Road at the US I0 1/San Antonio Road, US I0 1/Rengstorff/ Charleston Road and US I0 1/Shoreline Boulevard interchanges.

SR 85/ SR 237 Area Improvements in Mountain View to address mainline congestion and regional connectivity through the SR 85/SR 237 connector, SR 85/EI Camino Real interchange, and the SR 237/ El Camino/ Grant Road interchange.

SR 23 7 /US I0 I /Mathilda Avenue Area Improvements in Sunnyvale to address local roadway congestion.

SR 237 Corridor Improvements in the cities of San Jose, Santa Clara and Milpitas to address mainline congestion and regional connectivity by addition of a SR 23 7 westbound lane between McCarthy Boulevard and North First Street, improvements at the SR 237/Great America Parkway westbound off-ramp, and replacement/ widening ofthe Calaveras Boulevard structures over the UPRR tracks.

West County Improvements along I-280 in Cupertino, Los Altos, Los Altos Hills and Sunnyvale to address mainline congestion with mainline and interchange improvements from Magdalena Avenue to the San Mateo County line.

SR 85/1-280 Area Improvements in Cupertino, Los Altos, and Sunnyvale to address regional connectivity through a northbound I-280 braided ramp between SR 85 and Foothill Boulevard and improvements at the northbound I-280 off-ramp to Foothill Boulevard.

US I0 I /Trimble Road/ De La Cruz Boulevard to Zanker Road Area Improvements to address local roadway connectivity and mainline congestion in San Jose and Santa Clara with US I0 I /Trimble Road/ De La Cruz Boulevard interchange improvements, southbound US I0 1/SB 87 connector improvements, and a new US I0 I /Zanker Road interchange.

US I0 I /Old Oakland Road Improvements in San Jose to address local roadway congestion, access, and connectivity.

A new interchange on US I0/Mabury Road in San Jose to address regional access.

I-680 Corridor Improvements in San Jose to address mainline congestion and regional connectivity by improving the I-680/Alum Rock Avenue and I-680/ McKee Road interchanges.

I-280/ Lawrence Expressway/ Stevens Creek Boulevard Interchange Improvements to address mainline and local roadway congestion.

I-280/ Saratoga Avenue Interchange Improvements to address local circulation and mainline congestion.

DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.
1 6.1o.b
I-280/Winchester Boulevard Area Improvements in Santa Clara and San Jose to address regional connectivity and local circulation.

SR 87 Corridor Technology- based Improvements in San Jose to address mainline congestion and system reliability through the implementation oftechnology- based operational improvements to the freeway.

Highway 17 Corridor Congestion Relief: Upgrade Highway 17/9 interchange to improve pedestrian and bicycle safety, mobility, and roadway operations; deploy advanced transportation technology to reduce freeway cut thru traffic in Los Gatos, including traffic signal control system upgrades in Los Gatos, Traveler Information Systems advanced ramp metering systems; support Multi-Modal Congestion Relief Solutions, including enhanced Highway 17 Express Bus service, implementing local bus system improvements that reduce auto trips to schools, work and commercial areas in Los Gatos; and develop park and ride lots to serve as transit hubs for express bus, shuttles, local bus system connections.

SR 17 Southbound/ Hamilton Avenue Off-ramp Widening Improvements in Campbell to address mainline congestion and local circulation.

SR 17/San Tomas Expressway Improvements in Campbell to address mainline congestion and local circulation.

US 10 1/Biossom Hill Boulevard improvements in San Jose to address local roadway congestion and connectivity including for bicyclists and pedestrians.

US I0 I Improvements in Gilroy to address mainline congestion and regional connectivity with a new US I0 1/Buena Vista Avenue interchange and US 10 I /S R 152 IOth Street ramp and intersection improvements.

SR 152 Corridor Improvements in Gilroy including US 10 I/SR 25 interchange improvements to address regional connectivity and goods movement network improvements.

I-280/Wolfe Road Interchange Improvements in Cupertino to address mainline congestion and improve local traffic circulation.

I-880/Charcot Avenue Overcrossing in San Jose to address local relief circulation and adjacent I-880 interchanges congestion relief.

Noise Abatement Projects in Santa Clara County to implement treatments to address existing freeway noise levels throughout the county.

Intelligent Transportation Systems ( ITS) Projects in Santa Clara County such as integrated corridor management systems, traffic operations systems, ramp metering, managed lanes, and local traffic signal control systems to address freeway mainline congestion and local roadway congestion caused by cut-through traffic.

DocuSign Envelope ID: 926601B5- B2EF- 428F-A113-BDB99B349D87

ITEM NO. 9.

PREPARED BY: Matt Morley
Parks and Public Works Director
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: 05/ 04/ 2021 ITEM NO: 8
DATE: April 28, 2021
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Approve a Funding Agreement with the Santa Clara Valley Transportation Authority for the State Route 17 Corridor Congestion Relief Project (CIP NO. 813-0237)
RECOMMENDATION:

Approve a funding agreement with the Santa Clara Valley Transportation Authority (VTA) for the State Route 17 Corridor Congestion Relief Project (CIP No. 813-0237).

BACKGROUND:

In 2016, voters passed the countywide Measure B sales tax initiative. This Measure increased the local sales tax to pay for transportation related maintenance and improvements. As the Measure language was being crafted, the Town Council and staff lobbied for inclusion of categories and projects that would allow for the return of sales tax to the Town.

One of the most competitive categories within Measure B is the Highways category. Within this category, potential projects are identified with specific language for Los Gatos that reads:

Highway 17 Corridor Congestion Relief: Upgrade Highway 17/ 9 interchange to improve pedestrian and bicycle safety, mobility, and roadway operations; deploy advanced transportation technology to reduce freeway cut through traffic in Los Gatos, including traffic signal control system upgrades in Los Gatos, Traveler Information System, advanced ramp metering systems; support Multi-Modal Congestion Relief Solutions, including enhanced Highway 17 Express Bus service, implementing local bus system improvements that reduce auto trips to schools, work, and commercial areas in Los Gatos; and develop park and ride lots to serve as transit hubs for express bus, shuttles, local bus system connections.

ITEM NO. 9.

PAGE 2OF 3 SUBJECT: Approve a Funding Agreement with the Santa Clara Valley Transportation Authority for the State Route 17 Corridor Congestion Relief Project (CIP NO. 813-0237) DATE: April 28, 2021 BACKGROUND ( continued):

This was an important achievement as the Highway program is significantly oversubscribed potential projects far exceed the available funds in the Measure B Highway category). The Town has advanced a Highway 17 Congestion Relief project to provide relief from cut through traffic that occurs on weekdays and during summer weekends ( known as beach traffic).

Although Measure B may not be able to fund all of the project, having it proceed early allows for maximizing the funding that does go towards the project.

For this project, the Valley Transportation Authority (VTA) is acting as the project lead with the Town and Caltrans as major stakeholders. Town staff have been working with VTA on initial stages of the project. On March 16, 2021 the Town Council supported continued advancement of this project.

DISCUSSION:

The project is ready to move to the next phase of design through execution of a funding agreement with the VTA to proceed with the Project Approval and Environmental Document PAED). This agreement formalizes the Town’ s commitment of $600,000 to advance the project. At the completion of the PAED phase, the total cost of the project will be approximately $ 4 million, inclusive of Town funds.

CONCLUSION:

Approval of the Funding Agreement will allow for this project to proceed to the PAED phase.

COORDINATION:

This project is coordinated with VTA and Caltrans.

ITEM NO. 9.

PAGE 3OF 3 SUBJECT: Approve a Funding Agreement with the Santa Clara Valley Transportation Authority for the State Route 17 Corridor Congestion Relief Project (CIP NO. 813-0237) DATE: April 28, 2021 FISCAL IMPACT:

The Adopted FY 2020/ 21 Capital Improvement Program budget includes sufficient funds for this phase of the project, as demonstrated in the fiscal table below.

Highway 17/ 9 Interchange & Capacity Improvements
Project 813-0237
Budget Costs
Traffic Mitigation Fund $ 600,000
Total Budget $ 600,000
Santa Clara Valley Transportation Authority $ 600,000
Total Expenditures $ 600,000
Remaining Balance $ 0
ENVIRONMENTAL ASSESSMENT:

The project will begin an environmental assessment during the next phase of the project. This report is ministerial and not subject to environmental review.

Attachment:

1. Funding Agreement

ITEM NO. 9.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 5/21/2024
ITEM NO:

DATE: May 15, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adopt a Resolution to Designate the Town’s Agents by Title to Obtain Federal and/or State Financial Assistance through the California Governor’s Office of Emergency Services (Cal OES)
RECOMMENDATION:

Adopt a Resolution (Attachment 1) to designate the Town’s agents by title to obtain Federal and/or State financial assistance through the California Governor’s Office of Emergency Services (Cal OES).

BACKGROUND:

When disasters such as fire, flood, and earthquakes occur, cities may be eligible for Federal and/or State financial assistance by means of reimbursement or grant funding. Cal OES requires documentation be kept on file authorizing specific agents to apply for this financial assistance. This authorization must be approved by the Town Council and updated every three years.

Pending and future reimbursement and grant applications will only be accepted from an authorized agent whose title appears on the list approved by Council resolution and provided to Cal OES. This list of authorized agents is designated by title to alleviate the need to adopt a new resolution each time one of the designated agents leaves their position.

In February 2024 Town Council authorized Town Manager and the Assistant Town Manager as designated agents to apply for Federal and State disaster financial assistance and make necessary assurances to obtain such assistance. Designation of the Town Manager and Assistant Town Manager as agents to apply for Federal and State disaster financial assistance allows for the Town to take advantage of opportunities for funding should they arise in the future.

ITEM NO. 10.

PAGE 2 OF 2
SUBJECT: Adopt a Resolution to Designate the Town’s Agents by Title to Obtain Federal and/or State Financial Assistance through the California Governor’s Office of Emergency Services (Cal OES)
DATE: May 15, 2024
DISCUSSION:

As we have recently and successfully obtained State reimbursement for our COVID-19 eligible expenses, staff learned that the process could have been more streamlined if the Finance Director title had been included. For this reason, staff recommends that the Town Council authorize the Finance Director title as an additional agent to provide operational efficiencies when working on the submittal of the required documentation, workflow authorization, and grant reimbursement process.

CONCLUSION:

Designation of the Town Manager, Assistant Town Manager, and Finance Director as agents to apply for Federal and State disaster financial assistance will allow for the Town to take advantage of opportunities for funding should they arise in the future.

FISCAL IMPACT:

There is no fiscal impact from this project.

ENVIRONMENTAL ASSESSMENT:

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

Attachment:

1. Resolution to Designate the Town’s Agents By Title to Obtain Federal and/or State Financial Assistance Through the California Governor’s Office of Emergency Services (Cal OES)

ITEM NO. 10.

STATE OF CALIFORNIA
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Cal OES 130
Cal OES ID No: ______________________

DESIGNATION OF APPLICANT'S AGENT RESOLUTION

FOR NON-STATE AGENCIES

BE IT RESOLVED BY THE OF THE
(Governing Body) (Name of Applicant)

THAT , OR
(Title of Authorized Agent)
, OR
(Title of Authorized Agent)
(Title of Authorized Agent)
is hereby authorized to execute for and on behalf of the , a public entity (Name of Applicant)
established under the laws of the State of California, this application and to file it with the California Governor’s Office of Emergency Services for the purpose of obtaining certain federal financial assistance under Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act.

THAT the ________________________________________________, a public entity established under the laws of the State of California, (Name of Applicant)
hereby authorizes its agent(s) to provide to the Governor’s Office of Emergency Services for all matters pertaining to such state disaster assistance the assurances and agreements required.

Please check the appropriate box below:

This is a universal resolution and is effective for all open and future disasters up to three (3) years following the date of approval below.

This is a disaster specific resolution and is effective for only disaster number(s) ________________________ Passed and approved this day of , 20
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)
(Name and Title of Governing Body Representative)

CERTIFICATION
I, , duly appointed and of
(Name) (Title)
, do hereby certify that the above is a true and correct copy of a (Name of Applicant)
Resolution passed and approved by the of the
(Governing Body) (Name of Applicant)
on the day of , 2024 .
(Title)

(Signature)
Cal OES 130 (Rev.9/13)
ATTACHMENT 1
Town Council Town of Los Gatos
Town Manager
Assistant Town Manager
Finance Director
Town of Los Gatos
Town of Los Gatos
21st May 24
Mary Badame, Mayor
Matthew Hudes, Vice Mayor
Wendy Wood Town Clerk
Town of Los Gatos
Town Council Town of Los Gatos
21st May
Town Clerk

ITEM NO. 10.

STATE OF CALIFORNIA
GOVERNOR’S OFFICE OF EMERGENCY SERVICES
Cal OES 130 - Instructions
Cal OES Form 130 Instructions
A Designation of Applicant’s Agent Resolution for Non-State Agencies is required of all Applicants to be eligible to receive funding. A new resolution must be submitted if a previously submitted Resolution is older than three (3) years from the last date of approval, is invalid or has not been submitted.

When completing the Cal OES Form 130, Applicants should fill in the blanks on page 1. The blanks are to be filled in as follows:

Resolution Section:

Governing Body: This is the group responsible for appointing and approving the Authorized Agents.

Examples include: Board of Directors, City Council, Board of Supervisors, Board of Education, etc.

Name of Applicant: The public entity established under the laws of the State of California. Examples include: School District, Office of Education, City, County or Non-profit agency that has applied for the grant, such as: City of San Diego, Sacramento County, Burbank Unified School District, Napa County Office of Education, University Southern California.

Authorized Agent: These are the individuals that are authorized by the Governing Body to engage with the Federal Emergency Management Agency and the Governor’s Office of Emergency Services regarding grants applied for by the Applicant. There are two ways of completing this section:

1. Titles Only: If the Governing Body so chooses, the titles of the Authorized Agents would be entered here, not their names. This allows the document to remain valid (for 3 years) if an Authorized Agent leaves the position and is replaced by another individual in the same title. If “Titles Only” is the chosen method, this document must be accompanied by a cover letter naming the Authorized Agents by name and title. This cover letter can be completed by any authorized person within the agency and does not require the Governing Body’s signature.

2. Names and Titles: If the Governing Body so chooses, the names and titles of the Authorized Agents would be listed. A new Cal OES Form 130 will be required if any of the Authorized Agents are replaced, leave the position listed on the document or their title changes.

Governing Body Representative: These are the names and titles of the approving Board Members.

Examples include: Chairman of the Board, Director, Superintendent, etc. The names and titles cannot be one of the designated Authorized Agents, and a minimum of two or more approving board members need to be listed.

Certification Section:

Name and Title: This is the individual that was in attendance and recorded the Resolution creation and approval.

Examples include: City Clerk, Secretary to the Board of Directors, County Clerk, etc. This person cannot be one of the designated Authorized Agents or Approving Board Member (if a person holds two positions such as City Manager and Secretary to the Board and the City Manager is to be listed as an Authorized Agent, then the same person holding the Secretary position would sign the document as Secretary to the Board (not City Manager) to eliminate “Self Certification.”
Cal OES 130 (Rev.9/13) Page 2

ITEM NO. 10.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 05/21/2024
DATE: May 13, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Conduct a Public Hearing on the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year (FY) 2024/25 and on the Proposed Capital Improvement Program for FY 2024/25 – FY 2028/29
a. Consider the Recommendations of the Finance Commission; b. Provide Direction on the Proposed Operating Budget;
c. Provide Direction on the Proposed Capital Budget;
d. Approve the FY 2024/25 List of Potential Donations Consistent with the Town’s Donation Policy and
e. Review and Approve the Town Investment Policy
RECOMMENDATION:

Staff recommends the Town Council conduct a public hearing regarding the Los Gatos Proposed Operating and Capital Budgets for Fiscal Year2024/25 and the Town of Los Gatos Proposed Capital Improvement Program for Fiscal Years 2024/25- 2028/29, and take the following actions:
a. Consider the recommendations of the Finance Commission (Attachment 4); b. Provide direction on the Proposed Operating Budget;
c. Provide direction on the Proposed Capital Budget;
d. Approve the FY 2024/25 List of Potential Donations consistent with the Town’s Donation Policy (Attachment 8); and
e. Review and approve the Town Investment Policy with no changes (Attachment 9) BACKGROUND:

On April 22, 2024, the Proposed FY 2024/25 Operating and Capital Budgets were posted to the Town’s website and the links were provided to the Town Council, Finance Commission, and the

ITEM NO. 11.

PAGE 2 OF 9
SUBJECT: FY 2024/25 Proposed Operating and Capital Budgets DATE: May 14, 2024
BACKGROUND (continued):
public. Hard copies of the documents were provided to Council members and Commissioners who requested them.

Per Measure A, the Finance Commission received the Proposed Budgets 21 business days before May 21, 2024, which is the first meeting at which the Proposed Budgets are scheduled to be considered by the Town Council.

The Proposed Operating and Capital Budget for FY 2024/25 (Attachment 1) is a comprehensive financial plan that reflects the values of the Town, Council priorities, and community expectations for high levels of municipal services provided by the Town of Los Gatos. The Proposed FY 2024/25 – 2028/29 Capital Improvement Program (Attachment 2) is a five-year capital improvement plan which identifies projects to construct and maintain the Town’s infrastructure. The Transmittal Letters contained in both the Proposed Operating and Capital Budgets provide an overview of the recommendations for next fiscal year, including the fiscal outlook, key budget assumptions, and other information.

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

In addition to the Proposed Budget documents, the Town Council is being asked to consider corrections and clarification based on additional review and analysis since publication (Attachment 3) as well as the Finance Commission recommendations contained in Attachment

4. To help the Council work through the material, staff recommends that the Council discuss and make individual motions as appropriate on the following items as presented in this staff report:
 Finance Commission’s recommendations;
 Any other direction on the Proposed FY 2024/25 Operating Budget;  Any other direction on the Proposed FY 2024/25– 2028/29 Capital Budget;  Consideration the Proposed Donation List; and
 Consideration of the Investment Policy.

Council direction regarding the Proposed Operating and/or Capital Budgets provided at the May 21, 2024` budget hearing will be incorporated into an implementing resolution to be presented for final Council approval on June 4, 2024.

ITEM NO. 11.

PAGE 3 OF 9
SUBJECT: FY 2024/25 Proposed Operating and Capital Budgets DATE: May 14, 2024
DISCUSSION:

Overview of Proposed Operating Budget
The FY 2024/25 General Fund Budget of $56.9 million maintains existing services with modest staffing adjustments and no new programs. This Budget also provides for limited, continued strategic investments toward important wildfire vegetation management as Federal grant funding allows and other necessary infrastructure improvements to protect our community’s health and safety.

The Proposed FY 2024/25 Budget endeavors to maintain essential public services while controlling operational costs. The budget is “status quo” in that no additional services are proposed to be added or removed. Staff across the Town analyzed the details of all line items and provided justification for the costs with the same inflationary pressures being felt by private businesses and residents.

Even with areas of continued uncertainty, this Budget positions the organization well for continued excellence in service delivery to the community. In the evet revenue growth rate does not strengthen, the current projected deficits may need to be addressed through service delivery reductions or other actions. If this occurs, the Council will need continued input from the community to identify acceptable organizational changes and service levels.

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

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

Revenue forecasts for the current Budget have been developed in close consultation with the Santa Clara County Assessor, Town Sales Tax consultant MuniServices, and a review of national and regional hospitality research. The more realistic revenue growth assumptions were adopted by the Council in February 2024 (see pages A-21 and A-22 in the Proposed Operating Budget, Attachment 1).

In addition to revenue projections, the Proposed Budget also forecasts anticipated increases in the Town’s pension obligation payments and salaries as well as other expenditures (pages A-23 and A-24 in the Proposed Operating Budget Attachment 1). As a service delivery enterprise, the cost of salaries and benefits are a significant portion of the budget. The delivery of Town

ITEM NO. 11.

PAGE 4 OF 9
SUBJECT: FY 2024/25 Proposed Operating and Capital Budgets DATE: May 14, 2024
DISCUSSION (continued):
services is highly dependent on recruiting and retaining talent which comprises 64.7% of budgeted General Fund expenditures for FY 2024/25.

Although the Town is fortunate to have a diverse economy, the loss of previously projected future growth in revenue, such as Sales Tax, in conjunction with increasing expenses continue to illustrate persistent deficits in future years. The deficits are on the order of approximately $1.1 million to $1.8 million per year including the 4.6% salary saving factor and the more realistic revenue growth assumption that the Council adopted in February 2024.

Balancing the Proposed FY 2024/25 Operating Budget
For FY 2024/25, the Proposed Operating Budget is balanced by utilizing three primary strategies. The first strategy was the direction to all Departments to develop a status quo budget for operational expenditures. To that end, the Departments programmed existing resources by either maintaining current structures or realigning operations to remain effective and efficient. This proved exceptionally difficult as vendor, supply, and other costs rose beyond FY 2023/24 levels and Departments needed to absorb additional State unfunded mandates. In addition, Departments were provided guidance to enhance capacity where necessary through limit-dated, non-benefited personnel options when possible.

The second strategy is to build in a 4.6% salary savings factor that represents approximately $1.8 million in anticipated savings. Per prior Council direction, staff continues to hire for all vacant positions. If vacancy savings do not materialize, staff will come back to Council for adjustments.

The third strategy is the one-time use of $0.6 million of the Town’s residual Measure G District Sales Tax – Operating Reserve for one-time expenditures.

Overview of Proposed Capital Budget
The FY 2024/25 – FY 2028/29 Capital Improvement Program (CIP) sets forth a five-year plan for proposed streets, parks, and public facility projects. The Transmittal Letter contained in the CIP provides a summary of the program including funding sources, recently completed projects, and the proposed projects for FY 2024/25. The proposed $32.8 million in the first year of the CIP is comprised of approximately $25.7 million in carryover funds from FY 2023/24 and approximately $7.1 million in new funding. Carryforward is projected to decrease $1.9 million from the FY2023/24 CIP as staff is working off project backlog created by ARPA funding.

The $7.1 million of new funding is comprised of $4.2 million in General Fund Appropriated Reserve (GFAR), $0.6 million in grants, and $2.3 million from other sources. Only the first year

ITEM NO. 11.

PAGE 5 OF 9
SUBJECT: FY 2024/25 Proposed Operating and Capital Budgets DATE: May 14, 2024
DISCUSSION (continued):
of the plan is formally adopted with funds appropriated by the Town Council as part of the budget process. Budget information for future years is based on potential future revenues that may fluctuate and change based on economic conditions.

While the $32.8 million total carry forward and new appropriation represent the funding plan, the anticipated annual expenditures are detailed in Attachment 6.

The first year of the five-year CIP (FY 2024/25) continues funding for the Town Council Strategic Priorities, including basic infrastructure needs. In February 2024, the Town Council established the 2024-26 Strategic Priorities. In terms of capital projects, the Town Council affirmed it support of prioritizing traffic and transportation, public safety and quality of life related projects. The proposed CIP reflects these priorities by providing funding to:
 Advance bicycle and pedestrian identified in the adopted General Plan 2040 and the Bicycle and Pedestrian Master Plan (Highway 17 Overcrossing, Shannon Road Bicycle and Pedestrian Improvements);
 Enhance safety on Town roadways (Annual Street Resurfacing; Annual Curb, Gutter and Sidewalk; Shannon Road Repair);
 Parking management;
 Vegetation management for fire safety;
 Mapping the storm drainage system and analyzing critical drainage sSystems; and  Resurface sport courts to increase pickleball access.

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

On May 8, 2024, the Planning Commission reviewed the proposed CIP, found it consistent with the General Plan, and recommended its adoption by the Town Council.

Finance Commission Recommendations
As previously mentioned, the Finance Commission is tasked with a thorough review of the FY 2024/25 Proposed Operating and Capital Budgets. The Finance Commission held three meetings to review and discuss the documents. On May 13, 2024, the voting Commissioners in attendance unanimously approved the recommendations to the Town Council contained in Attachment 4.

ITEM NO. 11.

PAGE 6 OF 9
SUBJECT: FY 2024/25 Proposed Operating and Capital Budgets DATE: May 14, 2024
DISCUSSION (continued):

The Commission recommended adoption of the Operating Budgets subject to its seven comments and observations in Attachment 4, including:
 The Proposed Operating Budget does not include the updated costs associated with future Memoranda of Understanding with two of the Town’s three bargaining units;  The conservative Sales Tax revenue projections; and
 The conservative Educational Revenue Augmentation Funds (ERAF) reserve set-aside.

In terms of ERAF, staff continues to recommend reserving 30% of the anticipated ERAF proceeds based on information provided by the Santa Clara County Assessor’s Office to all Santa Clara County municipalities. Based on the most recent communication from the Santa Clara County Assessor’s Office (SCAO), there is potential at-risk exposure related to the Governor’s budget proposal of ERAF funding for Charter Schools, and the SCAO’s audit findings on Excess ERAF calculation as presented below. The Town Estimated ERAF Risk Reserve is $2,235,154 as of June 30, 2025 which is below the Town’s estimated risk amount of $2,996,455.

Therefore, staff recommends continuing to reserve 30% of the anticipated ERAF proceeds.

The Commission also suggested that the Council receive more information regarding sales tax revenue. The Town receives 1.0 cent of the 9.125 cents of sales tax paid per dollar of taxable sales generated in Town. Sales and Use Tax remains one of the General Fund’s largest revenue sources. In addition, the Town collects 0.125 cent in dedicated sales tax as a result of a voter approved ballot initiative in 2018. The FY 2024/25 budget reflects $6.6 million in sales tax revenue and $1.3 million in dedicated sales tax revenue. Combined, this represents a 0.1% increase from the FY 2023/24 estimates, but a $0.9 million dollar decrease from FY 2022/23 actual collections.

Sales tax estimates and projections are provided by MuniServices, the Town’s sales tax consultant. Overall, growth rates vary due to the anticipation of when and to what extent inflation may begin to decline. The current forecast incorporates a Recession Inflation Scenario, with the Consumer Price Index for all Urban Customers hitting a target of 2.5% at the end of 2026. Taxable sales for general retail and transportation are expected to see the greatest impacts. Increased interest rates impact business to business activities, while increased FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 Total $ Actual Actual Actual Estimated Estimated
Excess ERAF $ 2,043,321 $ 2,371,984 $ 2,298,692 $ 2,534,820 $ 2,617,000 According to Santa Clara County State Controller Office March 2024 Communication State Controller Audit Finding Risk % 22% 22% 22% 22% 20% State Controller Audit Finding Risk ($) $ 449,531 $ 521,836 $ 505,712 $ 557,660 $ 523,400 Governor's Budget Proposal for Charter School Risk % N/A N/A N/A 8% 9% Governor's Budget Proposal for Charter School Risk $ N/A N/A N/A $ 202,786 $ 235,530 Total % at Risk 22% 22% 22% 30% 29%
Total $ at Risk $ 449,531 $ 521,836 $ 505,712 $ 760,446 $ 758,930 $ 2,996,455 Town ERAF Risk Reserve - 30% $ 689,608 $ 760,446 $ 785,100 $ 2,235,154

ITEM NO. 11.

PAGE 7 OF 9
SUBJECT: FY 2024/25 Proposed Operating and Capital Budgets DATE: May 14, 2024
DISCUSSION (continued):
mortgage rates leave customers with less disposable income. In addition, gas service station sales are projecting decreased activity due to the popularity of electric vehicles.

The Commission had eight observations and comments regarding the Proposed CIP and recommended that the Council not accept the Proposed CIP unless staff provides an “expenditure profile” to accompany the “authorization profile.” In response to the Commission’s comments, staff prepared an expenditure profile for all projects in the Proposed CIP with anticipated capital expenditures for FY 24/25 and FY 25/26 (Attachment 6). It is important to note that a municipal CIP is not an expenditure plan but rather identification, allocation, and authorization of funding for projects. Other tools are used to manage project delivery to ensure they stay on time and within budget.

In response to the Commission’s comment about reconciling carry forward amounts between prior year Capital Improvement Programs that represent point in time information, , staff prepared a reconciliation (Attachment 5). The reconciliation demonstrates the difference between estimated and actual carry forwards that leads to updated budget numbers and budget actions that occur during the year that affect carry forward and budget Staff will continue to work on future budget presentations that include anticipated expenditures, explanations for carry forward, and other improvements.

Consideration of Any Funding Requests
As the Council considers individual requests for new spending, the Council should consider these requests in the context of the Proposed Operating Budget and identify the source(s) of funding for the(se) item(s). At the time of the preparation of this report, requests have been submitted to the Town from NUMU, Los Gatos-Saratoga Recreation, and the Anti-Racism Coalition and faith community (see Attachment 10).

Donation Opportunities - FY 2024/25 List of Town Needs
As part of the budget development process, the List of Town Needs is updated annually per Town Council Donation Policy (Attachment 7) to reflect goods, services, and other contributions that would help enhance Town services, programs, and events (Attachment 8).

Town Investment Policy
The Investment Policy (Attachment 9) establishes the investment scope, objectives, delegation of authority, standards of prudence, reporting requirements, internal controls, State mandated eligible investments, transactions, diversification requirements, risk tolerance, and safekeeping and custodial procedures for the investment of the operating funds of the Town. All Town

ITEM NO. 11.

PAGE 8 OF 9
SUBJECT: FY 2024/25 Proposed Operating and Capital Budgets DATE: May 14, 2024
DISCUSSION (continued):
funds are invested and/or will be invested in accordance with the Investment Policy and with applicable sections of the California Government Code.

The Investment Policy requires an annual review. Staff is not recommending any changes to the Investment Policy this time. The Finance Commission reviewed the Policy at its March 2024 meeting and recommended no changes.

CONCLUSION AND NEXT STEPS:

At its May 21, 2024 meeting, the Council will have an opportunity to listen to public testimony, ask questions, consider the Finance Commission’s recommendations, deliberate, and direct changes to the Proposed Operating and/or Capital Improvement Program Budgets. Any changes to the Proposed Operating and/or Capital Budgets directed by Council or identified by staff (see Attachment 5.) will be included for Council consideration in the resolution formally adopting the Budgets to be considered by Council on June 4, 2024.

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

COORDINATION:

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

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

FISCAL IMPACT:

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

ENVIRONMENTAL ASSESSMENT:

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

ITEM NO. 11.

PAGE 9 OF 9
SUBJECT: FY 2024/25 Proposed Operating and Capital Budgets DATE: May 14, 2024
Attachments Provided to the Council Prior to the Distribution of this Report:

1. FY 2024/25 Proposed Operating Budget
https://www.losgatosca.gov/2957/Proposed-FY-2024-25-Operating-Budget

2. FY 2024/25 – 2028/29 Proposed Capital Improvement Program Budget https://www.losgatosca.gov/2859/Proposed-2023-24-Capital-Budget Attachments Provided with this Report:

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

4. FY 2024/25 Finance Commission Operating and Capital Budget Recommendations

5. Sample Reconciliation of Carry Forward Amounts between Multiple CIPs

6. Anticipated Capital Expenditures FY 24/25 and FY 25/26

7. Town of Los Gatos Donation Policy

8. Town of Los Gatos Donation Opportunities: FY 2024/25

9. Town Investment Policy

10. Public Comment Received Before 11 a.m. on May 16, 2024

ITEM NO. 11.

ATTACHMENT 1
Attachment 1 - FY 2024/25 Proposed Operating Budget:
https://www.losgatosca.gov/2957/Proposed-FY-2024-25-Operating-Budget

ITEM NO. 11.

ATTACHMENT 2
Attachment 2 - FY 2024/25 – 2028/29 Proposed Capital Improvement Program Budget:
https://www.losgatosca.gov/2859/Proposed-2023-24-Capital-Budget

ITEM NO. 11.

Updates to the Proposed FY 2024/25 Budget Documents
ATTACHMENT 3
Based on additional staff review, the following updates are recommended to include in the final FY 2024/25 Operating and Capital Budget and FY 2024/25-FY 2028/29 Capital Improvement Plan (CIP) documents:

Proposed Operating & Capital Summary Budget FY 2024/25
Page A-24 – Remove “POA” under Safety Management from the table.

Page C-4 – Chart Horizontal Axis should be titled FY 2015/16 through FY 2024/25.

Page C-5 – Include the amount of the Waste Hauler Permit fee: While collections are estimated to stay at prior year levels, the revenue shifted from Franchise Fees to Licenses and Permits.

The FY 2024/25 estimates collection is $2,366,630.

Page C-18 and Page C- 24 Add Footnote to the Tables. *Effective FY 2024/25 Garbage Franchise Fees are Reclassified to License and Permits. The FY 2024/25 Proposed Budget includes $2,366,630 Waste Hauler Permit Fee.

Page C-41 – Correct FY 2023/24 Estimated column for One-Time ARC ICC. The amount should be $866,281 as the $877,614 amount should exclude the $11,333 included in the FY 2024/25 Proposed column. Additionally, the total for the FY 2023/24 Estimated column will be updated to $1,545,281 which will now match the FY 2023/24 Estimated Spending row in the General Fund Council Priorities – Economic Recover Reserve Tracking table.

Correct capitalization: (“One-time - Adult Recreation Center Interim Community Center” to “One-Time - Adult Recreation Center Interim Community Center”).

Page C-51 - Correct spelling: (“FY 2023/24” spelled “FY 223/24”).

Page C-52 - Correct spelling: (to “ensure” spelled “toensure”).

Page D-283 – Change language under program purpose to state: Administration’s core services are to provide administrative and managerial oversight for program and services, clerical and administrative assistance for day-to-day operations, personnel management, purchasing and physical plant maintenance, fiscal management and budget preparation, coordination with the Friends of Los Gatos Library Board, and support for the Library Board and the Arts and Culture Commission.

Proposed FY 2024/25 – 2028-29 Capital Improvement Program (CIP) Budget Page A-4 - Correct spelling in chart (“Underground” spelled as “Undeground”).

ITEM NO. 11.

Page A-9 - Add a footnote to projects Storm Drainage Repairs and TMO Roof Repairs to clarify that the projects are new to the CIP document but estimated to start in FY 2023/24. Therefore, related expenditures are characterized as carryforward. *Project anticipated to start in FY 2023/24
Page C-8 – Adjust VTA Allocation – Measure B and Other GFAR line-item amounts. Total GFAR, Source/Use of funds remain unchanged.

Page C-35 - FY 2024/25 Budget and Carryforward should total $8,821,334. The $8,381,333 displayed did not include 0435 Storm Drainage Mapping ($450,001).

STREET REPAIR & RESURFACING Project 811-9901
Estimated 2024/25
Prior Year 2023/24 Carryfwd to 2024/25 Budget 2025/26 2026/27 2027/28 2028/29 Total SOURCE OF FUNDS Actuals Estimated 2024/25 New Funding (w/ Carryforward) Proposed Proposed Proposed Proposed Project GFAR
Vehicle License Fee - 2010 Measure B $ 1,616,628 $ 180,000 $ 180,000 $ 180,000 $ 360,000 $ 180,000 $ 180,000 $ 180,000 $ 180,000 $ 2,876,628 VTA Allocation - Measure B - 683,680 385,753 857,873 1,243,626 857,873 857,873 857,873 857,873 5,358,797 Other GFAR $ 12,433,958 1,575,457 1,977,198 998,381 2,975,579 998,381 998,381 998,381 998,381 20,978,518 TOTAL GFAR FUND 14,050,586 2,439,136 2,542,951 2,036,254 4,579,205 2,036,254 2,036,254 2,036,254 2,036,254 29,213,943 GRANTS & AWARDS 230,000 - - - - - - - - 230,000

GAS TAX
Road Maintenance and Rehab Account (RMRA) - 803,626 - 859,033 859,033 859,033 859,033 859,033 859,033 5,098,791 Other Gas Tax & Prop 42 12,187,867 660,974 1,681,514 819,552 2,501,066 819,552 819,552 819,552 819,552 18,628,116 TOTAL GAS TAX FUND 12,187,867 1,464,600 1,681,514 1,678,585 3,360,099 1,678,585 1,678,585 1,678,585 1,678,585 23,726,907 TOTAL SOURCE OF FUNDS $ 26,468,453 $ 3,903,736 $ 4,224,465 $ 3,714,839 $ 7,939,304 $ 3,714,839 $ 3,714,839 $ 3,714,839 $ 3,714,839 $ 53,170,849 Estimated 2024/25
Prior Year 2023/24 Carryfwd to 2024/25 Budget 2025/26 2026/27 2027/28 2028/29 Total USE OF FUNDS Actuals Estimated 2024/25 New Funding (w/ Carryforward) Proposed Proposed Proposed Proposed Project GFAR
Salaries and Benefits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Services/Supplies/Equipment - - - - - - - - - -
Site Acquisition & Preparation - - - - - - - - - -
Consultant Services - - - - - - - - - -
Project Construction Expenses 14,050,586 2,439,136 2,542,951 2,036,254 4,579,205 2,036,254 2,036,254 2,036,254 2,036,254 29,213,943 TOTAL GFAR $ 14,050,586 $ 2,439,136 $ 2,542,951 $ 2,036,254 $ 4,579,205 $ 2,036,254 $ 2,036,254 $ 2,036,254 $ 2,036,254 $ 29,213,943

GRANTS & AWARDS
Salaries and Benefits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Services/Supplies/Equipment - - - - - - - - - -
Site Acquisition & Preparation - - - - - - - - - -
Consultant Services - - - - - - - - - -
Project Construction Expenses 230,000 - - - - - - - - 230,000 TOTAL GRANTS & AWARDS $ 230,000 $ - $ - $ - $ - $ - $ - $ - $ - $ 230,000 GAS TAX & PROP 42
Salaries and Benefits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Services/Supplies/Equipment - - - - - - - - - -
Site Acquisition & Preparation - - - - - - - - - -
Consultant Services - - - - - - - - - -
Project Construction Expenses 12,187,867 1,464,600 1,681,514 1,678,585 3,360,099 1,678,585 1,678,585 1,678,585 1,678,585 23,726,907 TOTAL GAS TAX & PROP 42 $ 12,187,867 $ 1,464,600 $ 1,681,514 $ 1,678,585 $ 3,360,099 $ 1,678,585 $ 1,678,585 $ 1,678,585 $ 1,678,585 $ 23,726,907 TOTAL USE OF FUNDS $ 26,468,453 $ 3,903,736 $ 4,224,465 $ 3,714,839 $ 7,939,304 $ 3,714,839 $ 3,714,839 $ 3,714,839 $ 3,714,839 $ 53,170,849

ITEM NO. 11.

D – 29 – Updated the Source of Funds section as the ‘Total Source of Funds’ row was not correctly footing.

Expended
Through
2023/24
2024/25
Budget &
Carryfwd*
2025/26
Budget
2026/27
Budget
2027/28
Budget
2028/29
Budget
Total
Budgeted
Carryforward Projects
9921 Curb, Gutter & Sidewalk Maintenance $ 5,197,835 $ 621,147 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 7,018,982 0218 Shannon Road Ped & Bikeway Improvements 369,421 1,937,809 - - - - 2,307,230 0225 Utility Undergrounding Improvements 2,852 299,573 - - - - 302,425 0227 Traffic Signal Modernization 2,542,401 94,858 - - - - 2,637,259 0235 Downtown Streetscape Revitalization/Economic
Recovery Efforts
2,289,007 552,633 - - - - 2,841,640
0237 State Route 17 Corridor Congestion Relief Project 600,000 867,000 600,000 600,000 600,000 600,000 3,867,000 0240 Winchester Class IV Bikeway 942,062 - - - - - 942,062 0241 Kennedy Sidewalk & Bike Lanes - LGB to
Englewood
- 2,365,376 - - - - 2,365,376
0242 Parking Program Implementation 278,629 488,826 - - - - 767,455 0414 Stormwater System - Pollution Prevention
Compliance
61,469 36,531 - - - - 98,000
0420 Annual Storm Drain Improvements 291,181 252,219 - - - - 543,400 0421 Loma Street Drainage - 350,000 496,300 - - - 846,300 0422 Harwood/Belridge Drainage Study - 100,000 - - - - 100,000 0423 709 University Avenue Drainage System
Replacement
- 200,000 - - - - 200,000
0424 333 University Inlet Capacity Improvements - 50,000 - - - - 50,000 0705 Downtown Parking Lots Seal Coat & Restriping 84,839 65,161 - 10,000 - 10,000 170,000 0708 Parking Lot 4 Repair/Waterproofing 199,800 50,200 - - - - 250,000 New Projects
0244 Overlook Road Tree Replacement - 40,000 - - - - 40,000 0425 Storm Drainage Mapping - 450,001 - - - - 450,001
Total Street Improvement Projects $ 12,859,495 $ 8,371,333 $ 1,396,300 $ 910,000 $ 900,000 $ 910,000 $ 25,347,129 $ 8,821,334

STREET IMPROVEMENT PROJECTS
FY 2024/25 - 2028/29 CAPITAL IMPROVEMENT PROGRAM TRAILHEAD CONNECTOR Project 832-4505 Estimated 2024/25
Prior Year 2023/24 Carryfwd to 2024/25 Budget 2025/26 2026/27 2027/28 2028/29 Total SOURCE OF FUNDS Actuals Estimated 2024/25 New Funding (w/ Carryforward) Proposed Proposed Proposed Proposed Project GFAR $ 349,000 $ 422,594 $ 696,374 $ - $ 696,374 $ - $ - $ - $ - $ 1,467,968

GRANTS & AWARDS
MTC OBAG 343,000 311,809 5,881,191 - 5,881,191 - - - - 6,536,000 TFCA - - 755,921 - 755,921 - - - - 755,921
Measure B - 2016 - 249,656 443,844 - 443,844 - - - - 693,500 TDA Article 3 - - 68,884 - 68,884 - - - - 68,884
TOTAL SOURCE OF FUNDS $ 692,000 $ 984,059 $ 7,846,214 $ - $ 7,846,214 $ - $ - $ - $ - $ 9,522,273 Estimated 2024/25
Prior Year 2023/24 Carryfwd to 2024/25 Budget 2025/26 2026/27 2027/28 2028/29 Total USE OF FUNDS Actuals Estimated 2024/25 New Funding (w/ Carryforward) Proposed Proposed Proposed Proposed Project GFAR
Salaries and Benefits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Services/Supplies/Equipment - - - - - - - - - -
Site Acquisition & Preparation - - - - - - - - - -
Consultant Services - - - - - - - - - -
Project Construction Expenses 349,000 422,594 696,374 - 696,374 - - - - 1,467,968 TOTAL GFAR $ 349,000 $ 422,594 $ 696,374 $ - $ 696,374 $ - $ - $ - $ - $ 1,467,968

GRANTS & AWARDS
Salaries and Benefits $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Services/Supplies/Equipment - - - - - - - - - -
Site Acquisition & Preparation - - - - - - - - - -
Consultant Services - - - - - - - - - -
Project Construction Expenses 343,000 7,584,305 126,579 - 126,579 - - - - 8,053,884 TOTAL GRANTS & AWARDS $ 343,000 $ 7,584,305 $ 126,579 $ - $ 126,579 $ - $ - $ - $ - $ 8,053,884 TOTAL USE OF FUNDS $ 692,000 $ 8,006,899 $ 822,953 $ - $ 822,953 $ - $ - $ - $ - $ 9,521,852

ITEM NO. 11.

Draft – For Discussion Purposes Only
Recommendations for The Town Council – FY 25 Operating and CIP Budget Pursuant to Town Code section 2.50.225 – Duties, the Finance Commission shall review the Town Managers’ annual proposed budget and provide written comments and recommendations to the Town Council including a recommendation whether the Town Council should approve or disapprove of the proposed budget.

The Town Manager’s proposed FY 2025 Operating and CIP Budget was made available to the public on April 22. The Finance Commission reviewed and discussed the proposed budget during commission meetings held on April 29, May 6th, and May 13th. The Finance Commission wishes to express our appreciation to Staff in supporting the Commission during this deliberative process.

Below are the Commission’s comments and recommendations for the Town Council’s consideration and action.

Proposed FY 2025 Operating Budget.

Comments
• It has been challenging to analyze the FY 2025 Operating Budget. The FY 25 operating plan includes many revenue and expenditure items such as tracking budgets, pass-through accounts, and debt service costs in addition to reclassifications of revenue from franchise tax to license and permits fees which are not consistent with historical financials prepared under GAAP. This lack of comparability makes it difficult to compare historical results to the FY 25 operating plan. Being able to analyze year-over-year changes in revenues and expenditures on a comparable basis is an important part of evaluating the reasonableness of a budget. Historical performance is an excellent predictor of future outcomes and can be used to quickly find anomalies. This analysis only works if there is consistency in reporting. • Using the statement of revenues and expenditures format presented in the ACFR, the FY 25 General Fund Excess of Revenues over Expenditures is $0. In FY 23 the excess of revenues over expenditures was $5.7m. That means Town’s Operating Expenditures for FY 25 are forecasted to increase $5.7m MORE than Operating Revenues. That is a troubling trend that requires cost containment strategies that are not well defined in the FY 25 plan. For example, consultant and contractor services are increasing $625k (25% growth) levels and fee charges and services are increasing $240k (15% growth) from FY 23 with little explanation provided as to the underlying cost forces.
• The Town Manager references “status quo” budgeting, but the town needs a more structured approach to cost management that sends a message that taxes and spending will be held in check. The City of Los Altos recently implemented zero-base budgeting claiming much success. A starting point would be for Staff to study Los Altos and learn from their success.

ATTACHMENT 4

ITEM NO. 11.
• The decrease in the General Fund balance of $514,285 shown on schedule C-8 and referenced in the Town Manager’s transmittal letter is the result of General Fund TransfersOut exceeding General Fund Transfers- In by $514,285 and not the result of a structural imbalance where operating expenditures exceed operating revenues. • There is one risk the Town Council needs to be aware of. Not all salary and benefit increases are reflected in the FY 25 Operating Budget. This is because the MOUs for the other two bargaining units expire June 30, 2024 and the Town is negotiating successor MOU’s. Any increases agreed in the successor MOU will require a funding source to offset the expense increase. The Finance Commission was not informed of the most likely outcome of these discussions.
• In looking at tax revenues, the Finance Commission believes Staff has been too conservative in forecasting sales tax and TOT revenues. Sales Tax revenue is forecasted to decline 10% from FY 23 actual level with TOT revenues being flat from FY 23. This appears to be overly conservative. Any overachievement in revenue can be used to cover incremental salary and benefit costs arising from the new MOU’s. If in fact sales tax revenues are expected to decline, the Town should aggressively develop and pursue strategies to revitalize and diversify the business base of the Town. • The Finance Commission also believes Staff has been overly conservative in increasing the General Fund reserve for ERAF risk to $2.2m. In direct discussions with Santa Clara County Counsel, a worst-case scenario of 22% of the excess ERAF could be clawed back. But the probability of that happening is very low. In addition to the ERAF reserve, Town has set up budget and catastrophic reserves totaling over $13m. To have over $15m in reserves strikes us as being overly conservative and an inefficient allocation of the Town’s capital. The Council should consider redeploying at least $1m of the ERAF reserve to reduce the Town’s unfunded pension liability. This would have the added benefit of reducing future pension contributions.

Recommendation
The Finance Commission recommends that the Town Council approve the FY 2025 Operating Budget subject to the comments above.

Proposed FY 25 CIP Budget
Comments
• The FY 25 CIP Budget totals $32.8 million made up of $25.7 million carryforward funds for 58 projects approved in prior years, new money totaling $5.6m for 20 of the 58 carryforward projects (35% of the projects in flight have budgets increased), and $1.5m for only 7 new projects.
• Over the five-year period through FY 29, the total CIP budget is $53.7m, with $20.m programmed for spending from FY 26 – FY 29.
• The Finance Commission is not able to judge the merit of the 65 projects programmed for FY 25. We assume these projects have been properly vetted and are consistent with the Town Council’s priorities. Our comments are focused on the planning and control

ITEM NO. 11.
processes surrounding the CIP Budget. We are concerned by the substantial number of carry-forward projects and the small number of projects that are annually closed out annually. This suggests there is insufficient project management capacity to manage a $32.8m capital budget. This might also be why 35% of the projects have their budget increased because they are running behind schedule and are subject to cost increases. • A major concern is how the CIP expenditures are planned to be spent. The expenditure budget is built on the assumption that all $32.8m (carryforward and new money) will be spent in FY 25. This will never happen. In fact, for the five-year period FY 19 – FY 23 the average annual expenditure for all capital assets per year was approximately $8m. This aggressive assumption leads to incorrect projections that the GFAR Fund balance will be substantially drained by the end of FY 25.
• The assumption that all capital expenditures will be made in FY 25 also leads to the loss of normal capital project management techniques which are used to track progress against a project timeline, a project dollar budget, and a project quality spec. While we understand the need to authorize the total project cost for a given phase, how these funds will be deployed over time should also be authorized. The CIP Budget does not include a capital expenditure time profile.
• For each capital project there is a project description which includes identifying the project phase (e.g., design or construction), the original date, a revised date, and a timeline for spending. However, the timeline reflects all carryforward funds and new FY 25 funds are deployed in FY 25. This should be adjusted to reflect the most likely deployment timeline which will become the basis for tracking performance to plan and on-time and on budget completions.
• The CIP Budget process also seems to be more focused on the new money being approved, in this case $7m, than understanding why carry-forward projects are not being closed out on a prompt basis and why their budgets are increasing. There is little explanation as to why the carryforward amounts continue to be carried forward. This appears to be a vicious cycle the Town is trapped in.
• Lastly, when we asked the staff to prove out the carryforward number in the FY 25 plan of $25.7m they were unable to do so. We computed a carryforward number of $19.9m starting with FY 24 total capital budget of $37.8m and subtracting the Town’s estimated capital spend for FY 24 of $17.9m. This is $5.8m less than the carry forward amount in the FY 25 CIP budget of $25.7m. Staff later was able to explain $2m of the $5.9m difference, but the remaining $3.8m is unexplained.

Recommendation
The Finance Commission’s recommends the Town Council not accept the FY 25 CIP Budget without an expenditure profile being provided in addition to the “authorization” profile currently presented.

Staff should properly time all capital expenditures so projects can be properly project managed against time, dollars, and quality specifications. This was a recommendation made by the Finance Commission last year, but unfortunately was not implemented for the FY 25 budgeting cycle.

ITEM NO. 11.

FY 2023/24 Capital Budget
FY 22/23 FY 22/23 to FY 22/23 FY 23/24 FY23/24
Estimated FY 23/24 New Total
Expenditures Carryforward Budget Budget Budget
A B C = A + B D E = B + D
11,081,810.00 27,646,692.00 38,728,502.00 10,125,131.00 37,771,823.00 FY 2022/23 Actuals
Expenditures Carryforward Budget
F G H = F + G
8,263,634.22 32,790,888.50 41,054,522.72
FY22/23 Actuals increased (decreased) by (2,818,175.78) I = F - A FY22/23 Budget increased (decreased ) by 2,326,020.72 J = H - C FY22/23 Carryforward increased (decreased) by 5,144,196.50 K = G - B = J - I FY 2024/25 Proposed Capital Budget
FY 23/24 FY 23/24 to FY23/24 FY24/25 FY24/25
Estimated FY 24/25 New Total
Expendtiures Carryforward Budget Budget Budget
L M N = L + M O P = M + O
17,941,378.00 25,746,967.00 43,688,345.00 7,071,632.00 32,818,599.00 FY 2023/24 Carryforward to FY 2024/25 25,746,967.00 M
Projected Carryforward 19,830,445.00 Q = E - L
Difference between Projected and Proposed CF 5,916,522.00 R = M = Q Increase in Carryforward from FY 2023/24 Cap. Budget 5,144,196.50 K Remaining Change in Carryforward in Proposed FY 2024/25 772,325.50 S = R - K See Next Page ATTACHMENT 5

ITEM NO. 11.

D G T = D + G N U = T - N = S
FY23/24 Beginning FY 24/25
Row Labels Sum of Budget Carryforward FY23/24 Beginning Budget + CF Proposed Budget Difference Description Council Meeting Item # Budget Adjustment 0008 1,814,064.00 2,631,847.87 4,445,911.87 4,442,911.87 3,000.00 3k transferred out for OpenGov 11/21/2023 13 BA - 24 -15 0129 - 22,900.00 22,900.00 - 22,900.00
Budget Transfer added 35,150
Pending Budget Transfer - 50k excess to be transferred to ADA compliance 12/19/2023 13 BT - 24 - 07 0130 - 825,191.00 825,191.00 1,572,191.00 (747,000.00)
750k Budget was authorized after the CIP book was printed so wasn't carried forward. 3k transferred out for OpenGov
4/18/2023
11/21/2023
8 13
BA - 24 - 03
BA - 24 - 15
0134 - 119,674.37 119,674.37 120,674.37 (1,000.00) 1k open encumbrance 0218 - 2,044,823.05 2,044,823.05 2,043,823.05 1,000.00 1k transferred out for OpenGov 11/21/2023 13 BA-24-15 0240 693,560.00 - 693,560.00 - 693,560.00 Budget was previously recognized in another project (Trailhead Connector) 0242 - 445,389.92 445,389.92 614,344.92 (168,955.00) Transfer from Parking Program ($168,955) 3/5/2024 11 BA-24-29 0243 - 39,050.00 39,050.00 - 39,050.00 Project anticipated to be complete so not in the proposed budget 2009 37,500.00 44,000.00 81,500.00 105,611.11 (24,111.11) Expenditures/Encumbrances over budget 2011 - 25,000.00 25,000.00 - 25,000.00 Project anticipated to be complete so not in the proposed budget 2121 - - - 79,640.00 (79,640.00) New Project - from Management Contingency Management Contingency BT-24-08 2207 - 114,595.66 114,595.66 - 114,595.66 Project anticipated to be complete so not in the proposed budget 2208 - - - 866,281.00 (866,281.00) New Project - Referenced in Adopted Budget 2309 - 25,000.00 25,000.00 - 25,000.00 Project anticipated to be complete so not in the proposed budget 2403 - 25,000.00 25,000.00 - 25,000.00 Project anticipated to be complete so not in the proposed budget 4508 100,000.00 5,880.77 105,880.77 102,880.77 3,000.00 3k transferred out for OpenGov 11/21/2023 13 BA-24-15 4605 - 57,469.06 57,469.06 56,969.06 500.00 500 transferred out for OpenGov 11/21/2023 13 BA-24-15 6103 - 25,283.07 25,283.07 7,000.00 18,283.07 7k Reserved, the rest to be released to fund balance 9901 - 4,547,706.69 4,547,706.69 7,768,201.14 (3,220,494.45) 73,138 Transfer out - Mid-year Adjustment
23,875 Budget Increase - Mid-year Adjustment
10,700 transferred out for OpenGov
25k transferred to 0132 - Local Road Safety Plan
2/20/2024
2/2020/24
11/21/2023
6/20/2023
13 13
13 15
BA-24-23
BA-24-23
BA-24-15
BT-24-02
9904 100,000.00 - 100,000.00 20,360.00 79,640.00 Management Contingency - 79,640k transferred to 2121 - TMO Roof Repairs Management Contingency BT-24-08 9911 3,243,977.00 - 3,243,977.00 - 3,243,977.00 Combined with 9901 - 61.48k excess expenditures 9921 300,000.00 151,331.66 451,331.66 410,681.66 40,650.00 5,500 transferred out for OpenGov
35,150 transferred to ADA
11/21/2023
12/19/2023
13 13
BA-24-15
BT-24-07
Total (all projects) 10,125,131.00 32,790,888.50 42,916,019.50 43,688,344.94 (772,325.44) ATTACHMENT 5

ITEM NO. 11.

Expended
Through2022/23
2023/24
Estimated
Actuals
Estimated
Carryfwd to
2024/25
2024/25
Budget
2025/26
Budget
2026/27
Budget
2027/28
Budget
2028/29
Budget Total Budgeted
Projected
Available
Funding (Total
Budgeted ‐
Expended
Through
2022/23)
2023/24
Estimated
Actuals (From
CIP Budget
Book B‐5, B‐6)
Projected
Spending 24/25
Projected
Spending 25/26
Projected
Available
Funding as
7/1/26
Reconstruction
811‐9901 Street Repair & Resurfacing 24,851,825 3,723,736 4,044,465 3,534,839 3,534,839 3,534,839 3,534,839 3,534,839 50,294,221 25,442,396 3,723,736 3,800,000 3,800,000 14,118,660 811‐9903 Pavement Rehab‐Crack Seal 1,616,628 180,000 180,000 180,000 180,000 180,000 180,000 180,000 2,876,628 1,260,000 180,000 180,000 180,000 720,000 Maintenance‐Safety
811‐9902 Annual Street Restriping              ‐ 180,228                            ‐ 15,000 20,000 30,000 40,000 50,000 335,228              ‐ 155,000 15,000 20,000 120,000 811‐9904 Unanticipated Repairs ‐ Annual ‐ 9,572 10,788 100,000 100,000 100,000 100,000 100,000 520,360 520,360 9,572 111,000 100,000 299,788 815‐9930 Retaining Wall Repairs 1,595,978 31,499 535,300 50,000 50,000 50,000 50,000 50,000 2,412,777 816,799 31,499 25,000 25,000 735,300 811‐0008 Shannon Road Repair 433,152 268,745 4,174,167              ‐ 500,000                            ‐                            ‐                            ‐ 5,376,064 4,942,912 268,745           ‐ 4,674,167                       ‐ 811‐0010 Blossom Hill Rd ‐ Union to Camden Improvements                            ‐ ‐                            ‐              ‐ 800,000                            ‐                            ‐                            ‐ 800,000              ‐ 800,000 400,000              ‐ 400,000 812‐0130 Roadside Fire Fuel Reduction ‐ Annual 999,809 186,640 1,385,551 100,000 100,000 100,000 100,000 100,000 3,072,000 2,072,191 186,640 1,000,000 750,000 135,551 812‐0131 East Main Street Crosswalk Improvements 43,700 18,000              ‐ 253,300                            ‐                            ‐                            ‐                            ‐ 315,000 271,300 18,000 100,000              ‐ 153,300 812‐0133 VMT Mitigation Program 134,767 48,568                 ‐ 66,665                            ‐                            ‐                            ‐                            ‐ 250,000 115,233 48,568                 ‐ 30,000 36,665 812‐0134 Measure B Education & Encouragement 18,671 52,017                 ‐ 68,657                            ‐                            ‐                            ‐                            ‐ 139,345 120,674 52,017 30,000 30,000 8,657 812‐0135 Town‐wide Speed Studies                            ‐ ‐                 ‐ 80,000                            ‐                            ‐                            ‐                            ‐ 80,000                 ‐ 80,000                       ‐                 ‐ 80,000 Street Improvements
813‐9921 Curb, Gutter & Sidewalk Maintenance 5,108,300 89,535 321,147 300,000 300,000 300,000 300,000 300,000 7,018,982 1,910,682 89,535 400,000 350,000 1,071,147 813‐0218 Shannon Road Ped & Bikeway Improvements 263,407 106,014           ‐ 1,937,809                            ‐                            ‐                            ‐                            ‐ 2,307,230 2,043,823 106,014           ‐ 1,937,809                       ‐ 813‐0225 Utility Undergrounding Improvements                   ‐ 2,852              ‐ 299,573                            ‐                            ‐                            ‐                            ‐ 302,425              ‐ 299,573                       ‐                       ‐ 299,573 813‐0227 Traffic Signal Modernization 2,001,927 540,474                 ‐ 94,858                            ‐                            ‐                            ‐                            ‐ 2,637,259 635,333              ‐ 540,474                       ‐ 94,858 813‐0235 Downtown Streetscape Revitalization/Economic Recovery Efforts 1,929,140 359,867              ‐ 552,633                            ‐                            ‐                            ‐                            ‐ 2,841,640 912,500              ‐ 359,867                       ‐ 552,633 813‐0237 State Route 17 Corridor Congestion Relief Project              ‐ 600,000              ‐ 867,000 600,000 600,000 600,000 600,000 3,867,000           ‐ 3,267,000              ‐ 867,000 2,400,000 813‐0240 Winchester Class IV Bikeway              ‐ 942,062                            ‐                            ‐                            ‐                            ‐                            ‐                            ‐                  ‐ 942,062                       ‐                       ‐                       ‐                       ‐ 813‐0241 Kennedy Sidewalk & Bike Lanes  ‐ LGB to Englewood                            ‐ ‐           ‐ 2,365,376                            ‐                            ‐                            ‐                            ‐ 2,365,376           ‐ 2,365,376 250,000           ‐ 2,115,376 813‐0242 Parking Program Implementation 153,110 125,519              ‐ 488,826                            ‐                            ‐                            ‐                            ‐ 767,455 614,345 125,519 384,998 20,000 83,828 813‐0244 Overlook Road Tree Replacement                            ‐ ‐                            ‐                 ‐ 40,000                            ‐                            ‐                            ‐ 40,000                 ‐ 40,000                 ‐ 40,000                       ‐ 816‐0414 Stormwater System ‐ Pollution Prevention Compliance 22,722 38,747                 ‐ 36,531                            ‐                            ‐                            ‐                            ‐ 98,000 75,278 38,747                 ‐ 36,531                       ‐ 816‐0420 Annual Storm Drain Improvements              ‐ 291,181              ‐ 252,219                            ‐                            ‐                            ‐                            ‐ 543,400              ‐ 252,219                       ‐                       ‐ 252,219 816‐0421 Loma Street Drainage                            ‐ ‐ 100,000 250,000              ‐ 496,300                            ‐                            ‐ 846,300              ‐ 846,300 150,000 100,000 596,300 816‐0422 Harwood/Belridge Drainage Study                            ‐ ‐              ‐ 100,000                            ‐                            ‐                            ‐                            ‐ 100,000              ‐ 100,000 50,000                 ‐ 50,000 816‐0423
709 University Avenue Drainage System Replacement                            ‐ ‐              ‐ 200,000                            ‐                            ‐                            ‐                            ‐ 200,000              ‐ 200,000 75,000              ‐ 125,000 816‐0424 333 University Inlet Capacity Improvements                            ‐ ‐                 ‐ 50,000                            ‐                            ‐                            ‐                            ‐ 50,000                 ‐ 50,000                       ‐                 ‐ 50,000 816‐0425 Storm Drainage Mapping                            ‐ ‐ 190,000              ‐ 260,001                            ‐                            ‐                            ‐ 450,001              ‐ 450,001 400,000                 ‐ 50,001 817‐0705 Downtown Parking Lots Seal Coat & Restriping                 ‐ 84,839 15,161                 ‐ 50,000                 ‐ 10,000 10,000 170,000                 ‐ 85,161                       ‐                 ‐ 85,161 817‐0708 Parking Lot 4 Repair/Waterproofing              ‐ 199,800                 ‐ 50,200                            ‐                            ‐                            ‐                            ‐ 250,000                 ‐ 50,200                       ‐                 ‐ 50,200 Bridges
818‐0801 Quito Road ‐ Bridge Replacement 64,594 235,087                 ‐ 50,000                            ‐                            ‐                            ‐                            ‐ 349,681 285,087              ‐ 235,087                 ‐ 50,000 818‐0803 Highway 17 Bicycle & Pedestrian Bridge ‐ Design 1,083,238 2,317,745           ‐ 1,056,319                            ‐                            ‐                            ‐                            ‐ 4,457,302 3,374,064 2,317,745           ‐ 1,056,319                       ‐ 818‐0804 Timber Bridge Inspection                            ‐ ‐                            ‐                            ‐ 25,000                 ‐ 25,000                            ‐ 50,000                 ‐ 50,000                       ‐                 ‐ 50,000 Parks ‐
831‐4007 Oak Meadow Bandstand Area Improvements 22,282 23,223              ‐ 241,225                            ‐                            ‐                            ‐                            ‐ 286,730 264,448 23,223 190,000                 ‐ 51,225 831‐4008 Oak Meadow Park Plane Recoating                            ‐ ‐                            ‐                            ‐                            ‐                 ‐ 40,000                            ‐ 40,000                 ‐ 40,000                       ‐                       ‐ 40,000 831‐4202 Town Plaza Turf Repairs                   ‐ 9,116 27,000                 ‐ 15,000                            ‐                            ‐                            ‐ 51,116                 ‐ 42,000                 ‐ 42,000                       ‐ Project Number and Name
Anticipated Capital Expenditures FY 2024/25 and FY 2025/26 Proposed Financial Summary As Presented in CIP Pages B‐5 and B‐6 New Information on Projected Spending 5/16/2024 3:25 PM ATTACHMENT 6

ITEM NO. 11.

Expended
Through2022/23
2023/24
Estimated
Actuals
Estimated
Carryfwd to
2024/25
2024/25
Budget
2025/26
Budget
2026/27
Budget
2027/28
Budget
2028/29
Budget Total Budgeted
Projected
Available
Funding (Total
Budgeted ‐
Expended
Through
2022/23)
2023/24
Estimated
Actuals (From
CIP Budget
Book B‐5, B‐6)
Projected
Spending 24/25
Projected
Spending 25/26
Projected
Available
Funding as
Project Number and Name 7/1/26
Anticipated Capital Expenditures FY 2024/25 and FY 2025/26 Proposed Financial Summary As Presented in CIP Pages B‐5 and B‐6 New Information on Projected Spending 831‐4404 Creekside Turf Replacement                            ‐ ‐              ‐ 500,000                            ‐                            ‐                            ‐                            ‐ 500,000              ‐ 500,000                       ‐                       ‐ 500,000 831‐4605 Parks Playground Fibar Project 92,531 36,820 20,149                 ‐ 25,000                 ‐ 25,000 25,000 224,500 131,969                 ‐ 36,820 40,000 55,149831‐4610 Pinehurst Community Garden 14,314 70,627 200,059                 ‐ 50,000                            ‐                            ‐                            ‐ 335,000 320,686 70,627                 ‐ 50,000 200,059 831‐4611 Sport Court Resurfacing                            ‐ ‐                            ‐              ‐ 100,000                            ‐                            ‐                            ‐ 100,000              ‐ 100,000              ‐ 100,000                       ‐ Trails
832‐4503 Charter Oaks Trail Improvement                 ‐ 72,942              ‐ 474,891                            ‐                            ‐                            ‐                            ‐ 547,833              ‐ 474,891                       ‐                       ‐ 474,891 832‐4504 Open Space Trail Upgrades                            ‐ ‐              ‐ 152,000                            ‐                            ‐                            ‐                            ‐ 152,000              ‐ 152,000 75,000                 ‐ 77,000 832‐4505 Trailhead Connector 692,000 8,006,899              ‐ 822,953                            ‐                            ‐                            ‐                            ‐ 9,521,851 8,829,851 8,006,899              ‐ 822,953                       ‐ 832‐4508 Vegetation Management ‐ Town‐wide 244,826 5,423 97,458 432,959 100,000 100,000 100,000 100,000 1,180,666 935,840 5,423              ‐ 930,417                       ‐ 832‐4510 Lynn Ave Pedestrian Path Design ‐ 55,448 134,552                 ‐ 50,000                            ‐                            ‐                            ‐ 240,000 240,000 55,448                 ‐ 50,000 134,552 Town Infrastructure
821‐2002 Town Beautification 129,422 17,687 7,517 15,000 15,000 15,000 15,000 15,000 229,625 100,203 17,687 15,000 15,000 52,517 821‐2009 Public Art Gateway Project 50,000              ‐ 105,611 37,500                 ‐ 37,500                            ‐                            ‐ 230,611 180,611 105,611 37,500                 ‐ 37,500 821‐2012 Emergency Preparedness                            ‐ ‐                 ‐ 96,780                            ‐                            ‐                            ‐                            ‐ 96,780                 ‐ 96,780 20,000 20,000 56,780 821‐2012 Annual ADA Compliance Work                            ‐ ‐ 10,000 70,000 20,000 20,000 20,000 20,000 160,000              ‐ 160,000 40,000 15,000 105,000 821‐2117 Civic Center ADA Restrooms and HR Offices 74,924 96,076              ‐ 809,000                            ‐                            ‐                            ‐                            ‐ 980,000 905,076 96,076 730,000                 ‐ 79,000 821‐2120 Civic Center Plumbing Repair                            ‐ ‐ 40,000 40,000                 ‐ 40,000                            ‐                            ‐ 120,000              ‐ 120,000 20,000 30,000 70,000 821‐2121 TMO Roof Repairs                            ‐ ‐                 ‐ 79,640                            ‐                            ‐                            ‐                            ‐ 79,640                 ‐ 79,640                 ‐ 79,640                       ‐ 821‐2208 ARC – Interim Community Center                            ‐ ‐ 866,281                 ‐ 11,333                            ‐                            ‐                            ‐ 877,614              ‐ 877,614                 ‐ 30,000 847,614821‐2302 Building Replacement at Corporation Yard 2,156,661 239,619              ‐ 267,414                            ‐                            ‐                            ‐                            ‐ 2,663,694 507,033 239,619              ‐ 250,000 17,414 821‐2310 Engineering Counter Modification                            ‐ ‐                 ‐ 40,000                            ‐                            ‐                            ‐                            ‐ 40,000                 ‐ 40,000                 ‐ 40,000                       ‐ 821‐2311 Fleet Service Outdoor Work Area (Design Phase)                            ‐ ‐                            ‐                 ‐ 45,000                            ‐                            ‐                            ‐ 45,000                 ‐ 45,000 35,000                 ‐ 10,000 821‐2404 POB Space Study                            ‐ ‐                 ‐ 75,000                            ‐                            ‐                            ‐                            ‐ 75,000                 ‐ 75,000 40,000                 ‐ 35,000 821‐2504 Library Improvements                            ‐ ‐                 ‐ 22,000                            ‐                            ‐                            ‐                            ‐ 22,000                 ‐ 22,000                       ‐ 10,000 12,000 821‐2505 Battery Power Supply ‐ Library 439,466 100,716                   ‐ 2,818                            ‐                            ‐                            ‐                            ‐ 543,000 103,534              ‐ 100,716                       ‐ 2,818 821‐2601
ADA Upgrade for Public Restrooms ‐ Adult Recreation
Building 103,964 294,099              ‐ 305,799                            ‐                            ‐                            ‐                            ‐ 703,861 599,898 294,099                 ‐ 75,000 230,799 Equipment
841‐6003 Town‐wide Document Imaging Project              ‐ 198,011                 ‐ 16,989                            ‐                            ‐                            ‐                            ‐ 215,000                 ‐ 16,989                 ‐ 16,989                       ‐ 841‐6101 Enterprise Resource Planning Upgrade 470,129 555,607              ‐ 576,817                            ‐                            ‐                            ‐                            ‐ 1,602,554 1,132,425 555,607 505,607                 ‐ 71,210 841‐6103 EOC Communications Upgrade 24,717 1,000                   ‐ 6,000                            ‐                            ‐                            ‐                            ‐ 31,717 7,000 1,000                   ‐ 6,000 841‐6104 IT Disaster Recovery Improvements 171,163 757                 ‐ 28,080                            ‐                            ‐                            ‐                            ‐ 200,000 28,837 757                 ‐ 10,000 18,080 TOTALS 47,588,397 17,941,378 25,746,967 7,071,632 5,618,639 5,129,839 5,039,839 5,084,839 119,221,530 71,633,133 17,941,378 20,223,930 9,124,973 24,342,851 5/16/2024 3:25 PM ATTACHMENT 6

ITEM NO. 11.

ITEM NO. 11.

ITEM NO. 11.

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ITEM NO. 11.

ATTACHMENT 8

TOWN OF LOS GATOS DONATION OPPORTUNITIES
FY 2024/25 LIST OF TOWN NEEDS
To ensure that all donations and contributions are sought and accepted in an ethical manner, the Council established a Donation and Solicitation Policy. A list of Town needs was developed to identify goods, services, and other contributions to enhance Town services, programs, and events. The recommended needs for FY 2024/254

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

LIBRARY SERVICES
 Children, Youth, and Adult Program Collections, Supplies and Services  Media items and other items for public circulation
 Funding to Support Technological Enhancements, including Digital Services  Equipment and Services to Support Historical Preservation Efforts  Resource Support for Collection Development and Reference, Local History, and Library Policy  Items to be Used as Prizes, Give Aways, and Incentives for Reading Programs and Events

SENIOR SERVICES
 Home Emergency Kits Geared Towards the Needs of Seniors  Targeted Solicitations for Community Engagement per the Town Solicitation and Donation Policy

COMMUNITY EVENTS
 Supplies, Materials, and Services for Special Community and Volunteer Events and Activities  Funding for the Realization of Public Art Projects or Donations of Public Art Subject to the Town’s Public Art Selection Policy

TOWN PARKS AND FACILITIES
 Beautification Materials and Services for Town Parks, Open Space, and Infrastructure  Land for Parks and Open Space
 Contributions that Support Recreation or Expansion of Athletic Fields  Contributions that Support Multi-Modal Transportation  Medical Devices that Enhance Public Safety

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

TECHNOLOGY

ITEM NO. 11.

ATTACHMENT 8
 Equipment, Software and Services to Enhance Communication with the Public and Organizational Productivity

ITEM NO. 11.

ATTACHMENT 9

ITEM NO. 11.

ITEM NO. 11.

ITEM NO. 11.

ITEM NO. 11.

ITEM NO. 11.

ITEM NO. 11.

ITEM NO. 11.

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Subject:

Attachments:

From: Kimberly Snyder
Sent: Thursday, April 4,
To: Laurel Prevetti
Cc: Jan Schwartz
FW: Proposal for Town Council
2024 Town Proposal (1) (1).pdf
>
>; Katy Nomura
Subject: Re: Proposal for Town Council
I [EXTERNAL SENDER]
Dear Laurel,
Thank you for getting back to me so quickly and providing that information. Please find our proposal attached and let us know when a closed session may be possible.

I'll work the board on attending the public finance committee meetings.

As always, I appreciate your help.

Warm regards,
Kimberly
On Thu, Apr 4, 2024 at 3:47 PM Laurel Prevetti
Good afternoon,
Thank you reaching out. I hope you are both doing well. > wrote:

Our proposed budget is currently in preparation for distribution on April 22 rni. We welcome any proposals and we will work with the Mayor to set a future closed session for discussion and next steps.

If you want to discuss the proposal publicly, the Finance Commission will be discussing the Proposed Budget on April 29, May 6, and May 13. The Council holds its Budget hearings on May 21.

Please let me know if you need anything else.

Thank you,
1 Page 298
ITEM NO. 11.

ITEM NO. 11.
3 Muwekma Ohlone Tribe Land Acknowledgment - As a member of the Los Gatos community, I acknowledge that I am a guest on the ancestral and traditional land of the First People of this region, the present-day Muwekma Ohlone Tribe of the San Francisco Bay Area historically Federally Recognized as the Verona Band of Alameda County. I support the restoration and sovereignty of this Chochenyo-Thámien-Ramaytush-Awáswas speaking BIA documented Ohlone Tribe, as well as all Indigenous Peoples. --
subscribe to our e-newsletter
Kimberly Snyder
Executive Director
she / her
p: 408.354.2646
a: 106 E. Main Street
Los Gatos, Ca 95030
w: numulosgatos.org
Engaging the community at the intersection of Art, History, and Education.

Muwekma Ohlone Tribe Land Acknowledgment - As a member of the Los Gatos community, I acknowledge that I am a guest on the ancestral and traditional land of the First People of this region, the present-day Muwekma Ohlone Tribe of the San Francisco Bay Area historically Federally Recognized as the Verona Band of Alameda County. I support the restoration and sovereignty of this Chochenyo-Thámien-Ramaytush-Awáswas speaking BIA documented Ohlone Tribe, as well as all Indigenous Peoples.

ITEM NO. 11.

March 26, 2024
Dear Los Gatos Town Council: The Honorable Mayor Badame, Vice Mayor Hudes, and Council Members Ristow, Moore, and Rennie
NUMU is requesting $350k investment over the next three years.

Since rebranding and opening at the Los Gatos Civic Center, New Museum Los Gatos (NUMU) has achieved tremendous growth. The Museum is a beacon for arts and history in the Bay Area, attracting 6,500+ annual visitors, 30% from the Town of Los Gatos. We receive County, State and Federal recognition and funding. This proposal will enable the museum to invest in programs and exhibits that enhance our ability to attract visitors that contribute to the strength of our town’s local economy – dining, shopping, and spreading the word about the attractions of Los Gatos. It ensures the stewardship of the Permanent Los Gatos History Collection and creates a suite of programs geared to attracting and serving seniors.

Specifically,this request includes support for the Los Gatos History Project for the next three years (June 30, 2024-July 1, 2027), as well as funding a monument sign at the Los Gatos Civic Center.

This proposal aligns with the Towns 2024-2026 Strategic Priorities significantly enhancing community vitality and quality of Life in Los Gatos. As outlined in the strategic plan:
● Community Vitality
○ Diversity, Equity & Inclusion Efforts
○ Community Where Older Adults Thrive
○ Events & Other Town-Wide Efforts
○ Community Engagement
○ Environmental Sustainability/Climate Resiliency
Request #1: Provide $100k per year over the next 3 years in matching funds for the Los Gatos History Project for accessible programming, exhibitions and collections stewardship.

Overview
The Los Gatos History Project makes our permanent art and history collection accessible in-person and through an online database. This project invites the community to experience the under told stories of our town’s local history through programs and rotating exhibitions. Our professional museum staff is uniquely qualified in delivering exhibitions and programs, collections care and display. The museum has actively secured funds since 2019 to help fund this project. Most recently the museum received a grant from the Institute of Museum and Library Services (IMLS) to fund the project. The $65k per year investment represents 50% of the total program budget, the

ITEM NO. 11.
required matching funds for the national IMLS grant. The additional $35k will provide partial matching funds for a new exhibition specific IMLS grant and an NEH grant.

Secured Funding to date
● The County of Santa Clara Historic Grant Program (2019-2022) invested $260k in initial funding.
● Institute of Museum and Library Services (IMLS) grant of $190k (matching grant over 3 years 2022-2025) to continue our work stewarding the Town’s history– this grant requires a 1:1 match
● Since 2021 NUMU has raised an additional $125k to continue this work over the next three years
● Institute of Museum and Library Services (IMLS) $120k in matching funds Muwekma Ohlone Exhibition. Application submitted November 2023, award notification date August 2024.
● National Endowment for the Humanities (NEH) $75k in matching funds Frank & George Exhibition. Application submitted August 2023, award notification date June 2024.

Upcoming Projects/Programs
● Produce history related exhibitions and programs sharing untold histories of Los Gatos and the surrounding areas that support the town’s DEI goals.
○ Upcoming Exhibitions:
■ The Los Gatos History Project: exploring untold stories: rotating exhibits highlighting and displaying the wide range of artifacts from the Permanent Collection.
■ Revitalization: Culture, Heritage and Traditions of the Muwekma Ohlone Tribe (2025/26.) Building on the successful Muwekma Ohlone exhibits of 2021, which traveled to the DeSaisset Santa Clara University Museum in January 2024, and has been requested by Alameda Creek Watershed, Stanford, CSU Monterey Bay and Grace Hudson Museum in Ukiah, CA. ■ The Boys: Frank Ingerson and George Dennison (2026-) NUMU has the most comprehensive collection representing the lives of these prolific artists and life partners and their home, Cathedral Oaks, a mountain destination for creatives in mid-20th-century Los Gatos.
○ Accessible Programs
■ Monthly Free Public Art & History Tours on Free First Sundays. ■ Private Tours for local senior groups.
■ Monthly e-newsletters and social media posts
■ Collection Lab: Lectures & talks with scholars, subject matter experts and local community partners. Examples include:
● Billy Jones Railroad

ITEM NO. 11.
● How to archive your family’s collection (catalogIt)
● Caring for your collection
● Lectures with Los Gatos History Bill Wulf
● History Still Life Drawing Workshops
● Talks with the Curator
● Loma Prieta Earthquake 35th anniversary
■ Footbridge Aspiring Artist Mural Program: NUMU provides a 3 week camp for ages 8-12 to create a mural to be placed on the footbridge celebrating life in Los Gatos. Students learn about Los Gatos history and art basics. ■ Presenting at statewide conferences bringing attention and visibility to the important work achieved in Los Gatos.
● We are asking the Town to participate in preserving and presenting its history.

The Collection
The Town has highly valued the importance of preserving the Town map from 1891. This is only one of the invaluable historical pieces in our collection. ● Recently acquired the collections of local historian Bill Wulf and the Billy Jones Family.

These are truly historical treasures of Los Gatos history. ● To date the museum has digitized over 2,600 artifacts in our permanent collection. This funding would ensure that we can digitize our entire collection which far exceeds our original estimate of 3,000 artifacts, making them accessible for the Los Gatos community and beyond. (View the database: https://hub.catalogit.app/4267) ● Town support is critical to continuing this project, keeping the Town’s history maintained and accessible.

Request #2: $50k Investment in increasing the Museum’s Visibility The museum has increased its reach in the Bay Area. Through strategic investments in marketing initiatives we will attract visitors to our exhibitions, programs and community events, encouraging Los Gatos tourism, while enhancing services and programs to our local residents. This will provide a source of direct revenue for the museum and generate indirect revenue in the town. Our vision is to make the Civic Center a central community hub. This initiative is an effort to elevate and beautify the space attracting visitors from Los Gatos and beyond. - Increase Visibility at Civic Center
- Monument sign on Main Street ($50,000)
NUMU’s relationship with the Town of Los Gatos is vital to us and our ongoing ability to serve our community. Thank you from all of us for your continued support.

ITEM NO. 11.

In partnership,
Kimberly Snyder, NUMU Executive Director
Jan Schwartz, NUMU Board President

ITEM NO. 11.

Museum’s Impact FY23 (July 1, 2022- June 30, 2023)
6,000+ Annual Visitors (30% from Los Gatos, 25% from San Jose) 100+ Exhibiting Artists (Bay Area)
● Marie Cameron, Alexander Hernandez, Kathy Aoki
● 83 emerging high school artists
● & more!
1,800+ Digitally cataloged and archived items from the Permanent Collection 10 Rotating Art and History Exhibitions
● Reclamation
● ArtNow 2023: Unarmed Truth
● Terra Firma
● ArtNow, Annual High School Juried Exhibition and Educational Program ● & more!
380+ Artworks & Artifacts Displayed
24 Programs & 24 Workshops, highlights include:
● Content Pick-Up Party (~300 visitors)
● Aspiring Artists Footbridge Mural Project
● Honoring the Earth with Mosaic America
● & more!
30+ Community Partners, including
● Muwekma Ohlone Tribe of the San Francisco Bay Area
● Mosaic America
● San Josè State University
● Los Color
● Santa Clara Office of Education
● Los Gatos Library
● Los Gatos Art Association
● & more!
Museum’s Strategic Priorities

1. Visibility - signage, marketing

2. Financial strength

3. Improving operations - fill all positions with competitive packages

4. Board development - ambassadors for the Museum and the community

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 05/21/2024
DATE: May 14, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Review Polling Results, Authorize the Town Manager to Execute an Amendment to the NBS Agreement to Include Phase 2 in the Scope of Services to Prepare a 1/8th Cent Sales Tax Measure for the November 2024 Ballot and Increase the Not to Exceed Amount to $105,000, and Authorize an Expenditure Budget Adjustment in an Amount of $60,400 from the Available General Fund Capital/Special Projects Reserve
RECOMMENDATION:

Review polling results, authorize the Town Manager to execute an amendment to the NBS agreement to include Phase 2 in the Scope of Services to prepare a 1/8th cent sales tax measure for the November 2024 Ballot and increase the not to exceed amount to $105,000 (Attachment 1), and authorize an expenditure budget adjustment in an amount of $60,400 from the available General Fund Capital/Special Projects Reserve.

REMARKS:

At its meeting on May 7, 2024, the Council received the polling results for a 1/8th cent sales tax and continued the discussion to the May 21, 2024 Town Council meeting. The Council also referred the topic of reviewing the polling results and discussing next steps to the Finance Commission. The staff report (Attachment 2) and polling summary presentation (Attachment 3) from the May 7 Council meeting are attached as well as the polling topline report (Attachment 4).

At its May 13, 2024 meeting, the Finance Commission recommended that the Town Council pursue the 1/8th cent sales tax increase only if the use of proceeds are tied to specific needs, such as building infrastructure, and are not for general revenue purposes. A specific tax would require a two-thirds vote to pass. A general tax would require a majority vote to pass.

ITEM NO. 12.

PAGE 2 OF 2
SUBJECT: Revenue Ballot Measure Polling Results
DATE: May 14, 2024
REMARKS (continued):

If the Council chooses to prepare a sales tax measure, staff recommends that the ballot language include a sunset date as well as a requirement for an independent oversight committee to ensure full transparency of the allocation of funds regardless of whether it is a specific or general tax. Prior to the November 2024 vote, the Council could also adopt a resolution specifying how to prioritize dollars from the potential sales tax measure if pursued.

Staff looks forward to Council’s discussion and direction on whether to pursue a 1/8th cent sales tax measure. If a measure is pursued, final ballot measure language and a resolution to place the measure on the November 2024 ballot would return to Council in June to meet the August 9, 2024 submittal deadline to the Santa Clara County Registrar of Voters.

COORDINATION:

The preparation of this report was coordinated with the Town Manager, Town Attorney, and Director of Finance.

FISCAL IMPACT:

On October 17, 2023, Council authorized the Town Manager to enter into an agreement with NBS for the initial phase of the revenue ballot measure work for amount not to exceed $44,600.

The proposed amendment would allow the second phase of work to begin and bring the total not to exceed amount for the contract to $105,000. This would require an expenditure budget adjustment of $60,400 from the Available General Fund Capital/Special Projects Reserve.

Placing a measure on the 2024 general election ballot is estimated to cost approximately $60,000. If a measure is pursued, the $60,000 expenditure budget adjustment would be requested when the Council considers the resolution to place the measure on the ballot.

If a 1/8th cent sales tax measure is successful, it is estimated to generate approximately $1 million in additional revenue for the Town annually.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Draft Amendment to NBS Agreement

2. May 7, 2024 Council Meeting Staff Report on Polling Results

3. Polling Results Summary

4. Polling Topline Report

ITEM NO. 12.

Agreement for Revenue Ballot Measure Consultant Services with NBS – First Amendment ATTACHMENT 1

AMENDMENT TO AGREEMENT
This AMENDMENT TO AGREEMENT is dated for identification this 8 th day of May 2024 and
amends that certain (AGREEMENT DESCRIPTION) dated October 18, 2023 made by and between the Town of Los Gatos, ("Town,") and NBS Government Finance Group, DBA: NBS, S Corporation (“Consultant”), whose address is 870 Market Street, Suite 1223, San Francisco, CA 94102.

RECITALS
A. Town and Consultant entered into a Consulting Agreement on October 18, 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 complete Phase 2 described in the Scope of Services.

AMENDMENT

1. Section 2.1 Scope of Services is amended to read as follows:

Consultant shall provide services as described in Phase 1 and Phase 2 of the Scope of Services, which is hereby incorporated by reference and attached as Exhibit A.

2. Section 2.6 Compensation is amended to read as follows:

Compensation for Consultant's professional services shall not exceed $105,000, inclusive of all costs. Payment shall be based upon Town approval of each task.

3. All other items and conditions of the Agreement remain in full force and effect.

IN WITNESS WHEREOF, the Town and Consultant have executed this Amendment.

Town of Los Gatos: Approved as to Consent:
_______________________________
Laurel Prevetti, Town Manager
_____________________________
Michael Rentner, Chief Executive Officer
Recommended by:
_______________________________________
Katy Nomura
Assistant Town Manager

ITEM NO. 12.
2 Approved as to Form: Attest:
______________________________ ______________________________ Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk

ITEM NO. 12.

Agreement for Revenue Ballot Measure Consultant Services with NBS

AGREEMENT FOR REVENUE BALLOT MEAURE CONSULTANT SERVICES THIS AGREEMENT is made and entered into on October 18, 2023 by and between TOWN OF LOS GA NBS Government Finance Group, DBA:

NBS, S Corporation 870 Market Street, Suite 1223, San Francisco, CA 94102. This Agreement is made with reference to the following facts.

I. RECITALS

1.1 The Town desire to engage Consultant to provide revenue ballot measure consultant services. 1.2 The Consultant represents and affirms that it is willing to perform the desired work pursuant to this Agreement.

1.3 Consultant warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement.

Consultant acknowledges Town has relied upon these warranties to retain Consultant.

II. AGREEMENTS

2.1 Scope of Services. Consultant shall provide services as described in Phase 1 of the Scope of Services, which is hereby incorporated by reference and attached as Exhibit A. Town staff and Consultant shall return to the Los Gatos Town Council for direction before conducting the voter poll portion of the work.

2.2 Term and Time of Performance. This contract will remain in effect from October 18, 2023 to November 5, 2024. 2.3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant 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. Consultant shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.

2.5 Information/Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant under this Agreement are the services or at the Town's written request. All reports, information, data, and exhibits Exhibit A to First Amendment Dated May 8, 2024

EXHIBIT A

ITEM NO. 12.

Agreement for Revenue Ballot Measure Consultant Services with NBS prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall not make any of the these documents or information available to any individual or organization not employed by the Consultant or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Consultant 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 Consultant in connection with other projects shall be solely at Town's risk, unless Consultant expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Consultant which is and has been confirmed in writing by Consultant to be a trade secret of Consultant.

2.6 Compensation. Compensation for Consultant's professional services shall not exceed $44,600, inclusive of all costs. 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. Consultant shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Consultant shall make these records available to authorized personnel of the Town at the Consultant's offices during business hours upon written request of the Town.

2.9 Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Consultant. 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 Consultant, 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 Consultant may perform some obligations

ITEM NO. 12.

Agreement for Revenue Ballot Measure Consultant Services with NBS under this Agreement by subcontracting, but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Consultant agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Consultant 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 Consultant or is based on allegations of Consultant's negligent performance or wrongdoing.

2.11 Conflict of Interest. Consultant understands that its professional responsibilities are solely to the Town. The Consultant has and shall not obtain any holding or interest within the Town of Los Gatos. Consultant 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, Consultant 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. Consultant 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, Consultant discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement, Consultant 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. Consultant warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Consultant 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.

III. INSURANCE AND INDEMNIFICATION

3.1 Minimum Scope of Insurance:
i. Consultant 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. Consultant 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.

ITEM NO. 12.

Agreement for Revenue Ballot Measure Consultant Services with NBS iii. Consultant shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Consultant agrees that all certificates and endorsements are to be received and approved by the Town before work commences.
iv. Consultant agrees to have and maintain, for the duration of the contract, professional liability insurance in amounts not less than $1,000,000 which is sufficient to insure Consultant for professional errors or omissions in the performance of the particular scope of work under this agreement.

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 Consultant; products and completed operations of Consultant, premises owned or used by the Consultant. This requirement does not apply to the automobile or professional liability insurance required for professional errors and omissions. ii. The Consultant'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 elected and appointed officials, employees, and agents, shall be excess of the Consultant'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 elected and appointed officials, employees, and agents.
iv. The Consultant'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 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 . In addition to these policies, Consultant 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,

ITEM NO. 12.

Agreement for Revenue Ballot Measure Consultant Services with NBS Consultant shall ensure that all subcontractors employed by Consultant provide the required Workers' Compensation insurance for their respective employees.

3.4 Indemnification. The Consultant shall save, keep, hold harmless and indemnify and defend the Town, its elected and appointed officials, employees, and agents, 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 the work described in this contract.

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 and Venue. 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 Consultant 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 Consultant shall deliver to the Town all plans, files, documents, reports, performed to date by the Consultant. In the event of such termination, Town shall pay Consultant 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 Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Consultant.

4.5 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.

4.6 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
NBS Government Finance Group, DBA: NBS, S
Corporation
870 Market Street, Suite 1223
San Francisco, CA 94102

ITEM NO. 12.

Agreement for Revenue Ballot Measure Consultant Services with NBS or personally delivered to Consultant to such address or such other address as Consultant designates in writing to Town.

4.7 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.

4.8 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Consultant. No terms, 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 Consultant have executed this Agreement.

Town of Los Gatos by:

Laurel Prevetti, Town Manager
Recommended by:

Katy Nomura, Assistant Town Manager
Consultant, by:

Michael Rentner, Chief Executive Officer
Printed Name and Title
Approved as to Form:

Gabrielle Whelan, Town Attorney
Attest: _____________________________________ Wendy Wood, CMC, Town Clerk

ITEM NO. 12.

Statement of Qualifications for Town of Los Gatos NBS | 3

4. Project Approach
Summary of Approach
NBS will communicate with the Town staff throughout
the duration of the project to clarify the Town’s goals, identify any special circumstances, and develop a realistic project schedule. The following Work Plans detail the steps needed to put the Town in the best position to propose a viable local funding ballot measure for the November 2024 election.

Although not mentioned in the Town’s Request for
Qualifications, an additional service we can provide is Revenue Measure Modeling to calculate financial benefit to the Town of a Special Financing District. This is
listed as an optional item in our proposed budget.

Phase 1 | October - December 2023 | Issue Research, Polling, Community Survey NBS will work with your team to understand the specific needs for, and demand on, the Town’s programs and services, and will provide an analysis of various tax models for the Town to understand potential options.

Develop Stakeholder Outreach and Public Engagement Messaging: NBS will work with staff, elected officials and stakeholders to develop agreed-upon messaging that will ensure the sharing of consistent ideas and concepts with the community during Phase One services such as polling. Standard messaging will provide clarity to community members and prevent confusion.

NBS will partner with the Town Manager, Town team, and our subconsultant GBA to provide the research needed for the Town to understand its most viable revenue measure options.

Voter Poll: Working with NBS and the Town team, GBA will draft a survey questionnaire for Town approval, and conduct a poll among likely voters within Los Gatos that will achieve the following objectives:
• Explore the current image of the Town of Los Gatos, voters' attitudes towards the Town, and their assessments of the strengths and weaknesses of local government; • Determine voter perceptions of the needs of the Town and the priorities that voters set for those needs;
• Determine voter attitudes towards various revenue measures for the Town, and the optimum amount to place before the voters;
Exhibit A: Scope of Services
Exhibit A
DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E

ITEM NO. 12.

Statement of Qualifications for Town of Los Gatos NBS | 4 • Evaluate voters' top priorities for money raised in order to design a measure that best addresses the desires of the community;
• Determine the most effective and important reasons for your voters to support a ballot measure; • Develop a demographic profile of Town voters, including how various demographic groups differ in their opinions and attitudes towards a possible ballot measure.

Polling Methodology: Our subconsultant, GBA, will select the survey sample from highly sophisticated and up-to-date voter registration files. This information, when combined with the answers to our survey questions, is essential as we identify voters who are most likely to vote in general, primary, municipal, special, or mail-only elections. It is critical to remember that any survey must interview only likely voters.

Being a registered voter is not enough. Those likely to vote will have demonstrated their interest in voting through their history in previous elections.

The sample will be drawn from lists of registered voters which have been matched with telephone directories and other lists to maximize the quantity of available telephone numbers. Since this is a small city, we would expect that a smaller sample of voters will be adequate, even if it is no more than 100-200 completed interviews.

GBA believes that it is of the utmost importance to go beyond simple questions and simple answers. For example, you will never see us ask if a problem is serious or not serious. We require differentiation between those with strong opinions and those with weaker opinions, those who say the problem is "extremely serious," or "very serious" rather than those who say it is only "somewhat serious" or "not too serious." Therefore, virtually all questions in our polls will delve into the intensity of feeling that voters bring to an issue. Only in this way can we separate those voters with a general opinion on an issue from those who are moved to take action because of that same issue (even if the "action" is just voting "yes" or "no").

Telephone interviews are conducted by a regularly employed staff of full-time professional interviewers who specialize in conducting interviews for public opinion surveys. GBA supervises the interviewing process and verifies that interviews are conducted according to specifications. Supervisory procedures include continuous on-site and telephone monitoring of interviews. GBA follows established industry standards for call backs of busy or "not-at-home" numbers designed specifically to maintain the randomness of interviewee selection and the validity of the survey. A regularly employed staff of fulltime professional interviewers conducts interviews in English, Spanish, Vietnamese, Cantonese, Mandarin, and other languages.

To summarize, we will provide to the Town of Los Gatos:
• Random telephone and on-line survey of likely voters
• Consultation solely with principal of Gene Bregman & Associates • Assistance in developing topic areas to be investigated • Development of survey questionnaire
• Scientific sample selection to assure reaching an accurate representation of the voting population • Pre-testing of questionnaire
• Conduct of field work from our central phone bank, as well as surveys completed from text and email contacts
• Editing, coding, and electronic data processing
• A full computer printout of all cross-tabulated data
DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E

ITEM NO. 12.

Statement of Qualifications for Town of Los Gatos NBS | 5 • Analysis of survey results
• On-going strategy and consultation
Feasibility Analysis of Ballot Measure Options and Expenditure Plan: Incorporating polling data, NBS and GBA will make recommendations to the Town team on a proposed ballot measure amount and ballot measure expenditure plan elements. If polling is favorable for a potential funding measure, this would be an optimal time to present polling data to the Town Council for discussion and recommendation to draft ballot measure language. This allows time for community outreach, input and consensus building among key stakeholders prior to finalizing the proposed ballot language and the resolutions Council must adopt to officially place a measure before voters.

Decision from Council to move to Phase 2.

Phase 2 | January 2023 – July 2024 | Message Toolkit, Stakeholder Outreach and Public Engagement
Outreach to key stakeholders (business, labor, and other community leaders) before a measure is officially proposed can be key to the success of its passage. This is where potential bumps in the road are uncovered, and ideally resolved. NBS will work with the Town team to develop a Stakeholder Outreach Plan and strategy to help build community consensus around the need for a ballot measure to maintain the quality of life that Los Gatos residents desire.

NBS will work with the Town team to create a Key Stakeholder Outreach Plan and a list of key stakeholders and media outlets, develop website content, and an Informational Toolkit (fact sheet, Q&A, PowerPoint presentation) that can be used to educate and engage leaders in the public and private sector, business community, and community-based organizations about the need for additional funding for essential public services.

Once the Council acts to place a measure on the ballot, the Town may consider some informational outreach to educate residents on the proposal itself through online and news media communications and through the mail. Working with your staff and legal counsel, we can assist with crafting and implementing that communications program.

Community Survey: In addition to the quantitative research conducted by GBA, CivicMic can conduct qualitative research in the form of a community survey of residents at large. This outreach through email and social media will be comprised of an abbreviated survey asking residents to weigh in with their priorities for town services and programs. This community engagement effort provides additional perspectives to the research and can be helpful in conveying the Town’s commitment to inclusivity and transparency.

DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E

ITEM NO. 12.

Statement of Qualifications for Town of Los Gatos NBS | 6 Finalize Ballot Measure Language and Ballot Argument
To place a ballot measure on the November 5, 2024 ballot, all election-related Council action and resolutions must be completed and noticed to the County by August 9, 2024, providing an important window of time for informing and engaging community members around the need for additional revenue before officially proposing and finalizing the ballot measure language.

NBS will work with the Town Manager and Town Attorney to draft ballot measure language and accompanying resolutions for Town Council approval.

Engagement Activities
Aiming to reach residents with diverse backgrounds allowing for unique perspectives, CivicMic would:

Create a customized webpage for your project on civicmic.com. This site would feature a variety of engagement tools and informational materials.

Develop an email campaign strategy to reach out to community members and stakeholders who may not have access to social media or may not regularly visit the Town website.

Include specialized mapping and graphics on CivicMic.com, such as sample maps showing community participation in the survey.

Design content related to the Town’s challenges in maintaining high services levels for resident programs and services.

Coach various Stakeholders on ways to share educational materials with community members through workshops and printed materials.

Create an email list of community members who have expressed interest in receiving updates.

DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E

ITEM NO. 12.

Statement of Qualifications for Town of Los Gatos NBS | 7

DRAFT TIMELINE
The following is an overview of our proposed project schedule. We will discuss a detailed schedule at the kick-off meeting, along with the expected timing for individual tasks. Note: This page is intentionally formatted differently to improve legibility of the table contents.

Apr '24 May '24 June '24 Jul '24 Aug '24 Sep '24 Oct '24 Nov '24 Phase 1 – Issue Research, Polling, Community Survey
Kickoff Meeting
Revenue Modeling (optional financial analysis)
Develop Stakeholder Outreach and Public Engagement Messaging Public Opinion Research
Draft Poll Questionnaire
Poll in Field
Initial Results
Crosstabs Available
Complete Full Analysis of Survey Results
Present Poll Results, Feasibility Analysis, Recommendations to Council for discussion (not action)
Phase 2 – Messaging, Stakeholder Outreach, Public Engagement Community Survey
Develop Message Toolkit
Stakeholder Outreach (key community leaders, businesses, orgs) Public Education/Engagement (Community Mtg, Email, Social Media) Finalize Ballot Language / Resolutions for Council Action Work Plans
PROJECT SCHEDULE - TOWN OF LOS GATOS Oct '23 Nov '23 Dec '23 Jan '24 Feb '24 Mar '24 Deadline for Council to
submit measure-related
documents to County:
8/9/24
DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E

ITEM NO. 12.

Statement of Qualifications for Town of Los Gatos NBS | 8

5. Costs
Our professional fees are based on our understanding the Town’s needs and the effort we believe is necessary to complete the scope of services described.

Director
(Wood)
Project
Manager
(Lewis)
GBA
Flat Fee
NBS
Consultant
(ArgerichValentine)
NBS Senior
Consultant
(Dayhoff)
NBS
Specialist
and Analyst
(Savage)
Consultant
Labor (Hrs.)
Consultant
Costs ($)
with
Optional
Services
Consultant
Costs ($)
without
Optional
Services
$250 $200 $30,000 $175 $200 $150
Work Plans
Phase 1 – Issue Research, Polling, Develop Communications Plan Kickoff Meeting 1.0 1.0 - 1.0 1.0 - 4.0 $ 825 $ 825
Revenue Modeling (Optional) 2.0 2.0 - 2.0 30.0 - 36.0 $ 7,250 $ - Develop Stakeholder Outreach & Public Education Messaging 7.0 7.0 - 5.0 - 8.0 27.0 $ 5,225 $ 5,225 Public Opinion Research* (design voter poll, analyze data) 2.0 4.0 1.0 - - - 7.0 $ 31,300 $ 31,300 Total Phase 1 $ 44,600 $ 37,350
Phase 2 – Messaging, Stakeholder Outreach & Public Engagement Community Survey Implementation (Optional) 4.0 10.0 - 10.0 - 20.0 44.0 $ 7,750 $ - Complete Stakeholder Outreach & Public Education Plan 8.0 8.0 - 5.0 - - 21.0 $ 4,475 $ 4,475 Create Informational Toolkit (e.g., webpage content, Fact Sheet, FAQ) 4.0 12.0 - 12.0 - 4.0 32.0 $ 6,100 $ 6,100 Stakeholder Outreach & Public Education (meetings, flyers, social media) 8.0 40.0 - 20.0 - 20.0 88.0 $ 16,500 $ 16,500 Draft Ballot Language 5.0 5.0 - - - - 10.0 $ 2,250 $ 2,250 Finalize Ballot Language / Resolution for Council 5.0 5.0 - - - - 10.0 $ 2,250 $ 2,250 Total Phase 2 $ 39,325 $ 31,575
GRAND TOTAL FEES 46.0 94.0 1.0 55.0 31.0 52.0 279.0 $ 83,925 $ 68,925

ESTIMATED EXPENSES
Travel Costs Per In-Person Meeting (not to exceed)1 Mailing and printing costs $ 12,000 $ 12,000 Travel and meeting expenses $ 3,500 $ 3,500
TOTAL INCLUDING ESTIMATED EXPENSES $ 99,425 $ 84,425

OPTIONAL SERVICES PRICING
Labor & Travel Costs Per Optional In-Person Meeting $ 2,000 $ 2,000 Cost associated with the design/print/postage per mailer Grand Totals

1. Travel-related cost and direct reimbursable expenses; all other expenses are included in labor rates. This cost will be $0 if all meetings and presentations are held remotely.

FEE SCHEDULE

TOWN OF LOS GATOS
Hourly Rate
DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E

ITEM NO. 12.

Statement of Qualifications for Town of Los Gatos NBS | 9

ADDITIONAL POLLING INFORMATION
Three major factors determine the cost for a survey: the number of interviews to be completed; the average length of each interview; and how easy or hard it is to reach and complete interviews with qualified voters. Of course, the more interviews that are completed, the more reliable is the data, as shown by the changes in sampling tolerance, or margin of error (MOE), at different completion rates. The following table shows how the MOE changes with the number of completes:
200 completed interviews = Margin of Error +/- 6.9%
300 completed interviews = Margin of Error +/- 5.7%
In addition, when the overall sample size increases, the sample sizes for various voter sub-groups will also increase, and their margins of error will decrease.

HOURLY RATES
Title Hourly Rate
Director / Senior Review $250
Associate Director / Engineer $225
Senior Consultant $200
Consultant $175
Project Analyst / Specialist $150
Project Resource Analyst $130
Clerical / Support $110
TERMS
Public Engagement services are invoiced on a monthly basis. Expenses will be itemized and included in the next regular invoice. If the project is prematurely terminated by either party, NBS shall receive payment for work completed. Payment shall be made within 30 days of submittal of an invoice. If payment is not received within 90 days, simple interest will begin to accrue at the rate of 1.5% per month. Either party can cancel consulting contract with 30 days’ written notice.

DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E

ITEM NO. 12.

Statement of Qualifications for Town of Los Gatos NBS | 10

EXPENSES
Customary out-of-pocket expenses are billed at actual cost to NBS. These expenses may include, but not be limited to, boundary map and assessment diagram preparation (time, materials, plotting and all related costs), mailing fulfillment, postage, supplies, reproduction, telephone, travel, meals and various third-party charges for data, maps, and recording fees.

DocuSign Envelope ID: E3A5F1AB-4463-4D7E-887E-D7F5A5FCEE0E

ITEM NO. 12.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 05/07/2024
DATE: April 26, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Review Polling Results, Authorize the Town Manager to Execute an Amendment to the NBS Agreement to Include Phase 2 in the Scope of Services to Prepare a 1/8th Cent Sales Tax Measure for the November 2024 Ballot and Increase the Not to Exceed Amount to $105,000, and Authorize an Expenditure Budget Adjustment in an Amount of $60,400 from the Available General Fund Capital/Special Projects Reserve
RECOMMENDATION:

Review polling results, authorize the Town Manager to execute an amendment to the NBS agreement to include Phase 2 in the Scope of Services to prepare a 1/8th cent sales tax measure for the November 2024 Ballot and increase the not to exceed amount to $105,000 (Attachment 1), and authorize an expenditure budget adjustment in an amount of $60,400 from the available General Fund Capital/Special Projects Reserve.

BACKGROUND:

While costs of providing services and programs for residents have significantly increased over the years, Town revenues have not kept pace. Los Gatos is facing the same economic pressures as many other cities and businesses, including inflation and the uneven recovery from the pandemic. In addition, unfunded mandates by the State have also reduced the Town's available funds.

The Town maintains a relatively stable and low staffing level. Even so, costs per employee continue to escalate as evidenced by pension benefit costs having increased 35% in the last five years. The Town Council has taken several proactive steps to reduce the Town’s pension liability, including Additional Discretionary Payments for the Pension Plans and curbing cost escalation in Other Post-Employment Benefits (OPEB).

ATTACHMENT 2

ITEM NO. 12.

PAGE 2 OF 4
SUBJECT: Revenue Ballot Measure Polling Results
DATE: April 26, 2024
BACKGROUND (continued):

Los Gatos has taken the following proactive cost-cutting measures during major economic downturns to control costs while maintaining high service levels:
x Staffing levels significantly reduced from 2001 – 2005 and have not returned to those levels, despite an increase in population since then, unfunded mandates, and service demands,
x Imposed wage freezes and unpaid furloughs, and
x Reduced employee benefit costs.

Town financials are reviewed annually by an independent auditor. Los Gatos has earned recognition for its fiscal responsibility with the highest credit rating (AAA bond rating by Moody’s) and annual awards by the Government Finance Officers Association for its high quality and transparent budgeting practices.

On November 17, 2022, the Finance Commission reviewed several cost reduction measures and recommended that the Town further work toward operational efficiencies and researching additional revenue options.

On January 24, 2023, the Town Council determined its Strategic Priorities for 2023-2025, which included exploring new revenue opportunities.

On June 20, 2023, the Town Council authorized the Town Manager to issue a Request for Qualifications (RFQ) for revenue ballot measure consulting services. After conducting the RFQ process, the Town selected NBS.

On October 17, 2023, Town Council authorized the Town Manager to enter into an agreement for the initial phase of the work for an amount not to exceed $44,600, with direction to return to Council with revenue modeling prior to beginning any polling.

On December 19, 2023, Town Council reviewed the Revenue Modeling Report prepared by NBS and continued the item to February 20, 2024 to consider it at the same time as the five-year forecast.

On February 12, 2024, the Finance Commission discussed the NBS report and recommended that the Town Council not rely upon the NBS Report’s conclusions regarding deficit reductions because the financial analysis was based on an outdated 5-Year Forecast which did not include actual results for Fiscal Year 2022/23. The Finance Commission did find that the incremental revenue contribution for the revenue options analyzed are credible and can be used for modeling purposes. While the Commission did not make a motion regarding any potential ballot measure, individual Commissioners questioned the need for it at this time. One

ITEM NO. 12.

PAGE 3 OF 4
SUBJECT: Revenue Ballot Measure Polling Results
DATE: April 26, 2024
BACKGROUND (continued):

Commissioner expressed that there may or may not be merit to the 1/8th cent tax measure and indicated this was the reason they declined to opine.

On February 13, 2024, the Town Council updated its Strategic Priorities and removed the detailed bullets under “Develop a Five-Year Structurally Balanced and Sustainable Operating Forecast,” including reference to new revenue opportunities.

On February 20, 2024, the Town Council directed staff to proceed with polling to explore a 1/8th cent sales tax. A 1/8th cent sales tax is estimated to result in approximately $1 million in additional revenue annually.

DISCUSSION:

NBS partnered with Gene Bregman and Associated to conduct the scientific polling. Polling occurred from March 24-27, 2024 and surveyed 200 registered Los Gatos voters. The summary of the polling results will be presented at the Council meeting, including the following conclusions:
x Los Gatos residents are very positive towards their Town, local government, and Departments within local government.
x Maintaining public safety (police services and wildfire prevention) and traffic congestion are of paramount importance to voters.
x Majority of voters are supportive of a 1/8th cent sales tax increase for the Town. x If the Town captures the remaining 1/8th cent of sales tax capacity available to Los Gatos, 100% of the funds would remain in Los Gatos.
x Not claiming the remaining sales tax capacity means a County entity could capture the 1/8th cent and raise sales tax for Los Gatos with potentially little benefit to the Town.

The Finance Commission had the option to consider the polling results at its May 6, 2024 meeting prior to Council consideration. The Finance Commission Chairperson preferred to focus the meeting on the proposed Fiscal Year 2024/25 Budget and referenced that the Commission discussed potential polling and revenue measures on February 12, 2024. A summary of the February 12, 2024 discussion can be found in the Background section of this report.

If Council authorizes Phase 2 of the NBS agreement, the consultant will prepare public education and outreach, refine ballot measure language, and draft a resolution for the Town Council to place the measure on the 2024 ballot. It is worth noting that a super majority of Council (4/5) is required to place a measure on the 2024 ballot.

ITEM NO. 12.

PAGE 4 OF 4
SUBJECT: Revenue Ballot Measure Polling Results
DATE: April 26, 2024
CONCLUSION:

Staff looks forward to Council’s discussion and direction on whether to pursue a 1/8th cent sales tax measure. If a measure is pursued, final ballot measure language and a resolution to place the measure on the November 2024 ballot would return to Council in June to meet the August 9, 2024 submittal deadline to the Santa Clara County Registrar of Voters.

COORDINATION:

The preparation of this report was coordinated with the Town Manager, Town Attorney, and Director of Finance.

FISCAL IMPACT:

On October 17, 2023, Council authorized the Town Manager to enter into an agreement for the initial phase of the work for amount not to exceed $44,600. The proposed amendment would bring the total not to exceed amount for the contract to $105,000 and require an expenditure budget adjustment of $60,400 from the Available General Fund Capital/Special Projects Reserve. The cost of placing a measure on the 2024 general election ballot is estimated to cost approximately $60,000. If a measure is pursued, the $60,000 expenditure budget adjustment would be requested when the Council considers the resolution to place the measure on the ballot.

If a 1/8th cent sales tax measure is successful, it is estimated to generate $1 million in additional revenue for the Town annually.

ENVIRONMENTAL ASSESSMENT:

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

Attachment:

1. Draft Amendment to NBS Agreement

ITEM NO. 12.

GENE BREGMAN & ASSOCIATES
Summary Charts of Results
from a Survey
of November 2024 Likely Voters
in the Town of Los Gatos,
California
200 Interviews
Interviewing: March 24-27, 2024
ATTACHMENT 3

ITEM NO. 12.

GENE BREGMAN & ASSOCIATES
Chart 1
Rating Los Gatos as a Place to Live
47%
45%
8%
0%
Excellent
Good
Poor
Only Fair 92%
No Opinion
*

ITEM NO. 12.

GENE BREGMAN & ASSOCIATES
Chart 2
Excellent/Good Job Ratings in Los Gatos
Excellent/Good
34%
Only
Fair
19%
Poor
8%
Community Development
Department
No
Opinion
39%
Excellent/Good
67%
Only Fair
20%
Poor
8%
Town Government
Overall
No
Opinion
5%
Excellent/Good
77%
Only
Fair
10%
Poor 3%
Parks &
Public Works Department
No
Opinion
10%
Excellent/Good
79%
Only Fair
13%
Poor
3%
Police
Department
No
Opinion
5%
Excellent/Good
81%
Only
Fair
5%
Poor 1%
Library Department
No
Opinion
13%