Los Gatos City Council
June 4, 2024

ITEM NO. 12.

Payment shall be net thirty ( 30) days. All invoices and statements to the Town shall be addressed as follows:

Invoices:

Town of Los Gatos
Attn: Accounts Payable
P. O. Box 655
Los Gatos, CA 95031- 0655

2. 8 Availability of Records. Service Provider shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Service Provider shall make these records available to authorized personnel of the Town at the Service Provider offices during business hours upon written request of the Town.

2. 9 Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Service Provider. No portion of these services shall be assigned or subcontracted without the written consent of the Town.

2. 10 Independent Contractor. It is understood that the Service Provider, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and not an agent or employee ofthe Town. As an independent contractor he/ she shall not obtain any rights to retirement benefits or other benefits which accrue to Town employee( s). With prior written consent, the Service Provider may perform some obligations under this Agreement by subcontracting, but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Service Provider agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Service Provider shall be compensated for its costs and expenses in preparing for, traveling to, and testifying in such matters at its then current hourly rates of compensation, unless such litigation is brought by Service Provider or is based on allegations of Service Provider' s negligent performance or wrongdoing.

2. 11 Conflict of Interest. Service Provider understands that its professional responsibilities are solely to the Town. The Service Provider has and shall not obtain any holding or interest within the Town of Los Gatos. Service Provider has no business holdings or agreements with any individual member of the Staff or management of the Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Service Provider warrants that it does not presently and shall not acquire any direct or indirect interest adverse to those of the Town in the subject of this Agreement, and it shall immediately disassociate itself from such an interest, should it discover it has done so and shall, at the Town' s sole discretion, divest itself of such interest. Service Provider shall not knowingly and shall take reasonable steps to ensure that it does not employ a person having such an interest in this performance of this Agreement. If after employment of a person Service Provider discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement Service Provider shall promptly notify Town of this 1LP Building Maintenance Page 3 of 7

ITEM NO. 12.
employment relationship, and shall, at the Town' s sole discretion, sever any such employment relationship.

2. 12 Equal Employment Opportunity. Service Provider warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Service Provider nor its subcontractors do and neither shall discriminate against persons employed or seeking employment with them on the basis of age, sex, color, race, marital status, sexual orientation, ancestry, physical or mental disability, national origin, religion, or medical condition, unless based upon a bona fide occupational qualification pursuant to the California Fair Employment & Housing Act.

III. INSURANCE AND INDEMNIFICATION

3. 1 Minimum Scope of Insurance:

I. Service Provider agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/ her and his/ her firm to an amount not less than: one million dollars ($ 1, 000, 000) combined single limit per occurrence for bodily injury, personal injury and property damage.
ii. Service Provider agrees to have and maintain forthe duration of the contract, an Automobile Liability insurance policy ensuring him/ her and his/ her staff to an amount not less than one million dollars ($ 1, 000,000) combined single limit per accident for bodily injury and property damage. iii. Service Provider shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Service Provider agrees that all certificates and endorsements are to be received and approved by the Town before work commences.

General Liability:

I. The Town, its officers, officials, employees and volunteers are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Service Provider; products and completed operations of Service Provider, premises owned or used by the Service Provider. ii. The Service Provider' s insurance coverage shall be primary insurance as respects the Town, its officers, officials, employees and volunteers. Any insurance or self -insurances maintained by the Town, its officers, officials, employees or volunteers shall be excess of the Service Provider' s insurance and shall not contribute with it.
1LP Building Maintenance Page 4 of 7

ITEM NO. 12.
iii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers.
iv. The Service Provider' s insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer' s liability.

3. 2 All Coverages. Each insurance policy required in this item shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty ( 30) days' prior written notice by certified mail, return receipt requested, has been given to the Town. Current certification of such insurance shall be kept on file at all times during the term of this agreement with the Town Clerk.

3. 3 Workers' Compensation. In addition to these policies, Service Provider shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement.

Further, Service Provider shall ensure that all subcontractors employed by Service Provider provide the required Workers' Compensation insurance for their respective employees.

3. 4
Indemnification. The Service Provider shall save, keep, hold harmless and indemnify and defend the Town its officers, agent, employees and volunteers from all damages, liabilities, penalties, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of, or in the course of performing work which may be occasioned by a willful or negligent act or omissions of the Service Provider, or any of the Service Provider' s officers, employees, or agents or any subcontractor.

IV. GENERAL TERMS

4. 1 Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder, nor does waiver of a breach or default under this Agreement constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement.

4. 2 Governing Law. This Agreement, regardless of where executed, shall be governed by and construed to the laws of the State of California. Venue for any action regarding this Agreement shall be in the Superior Court of the County of Santa Clara.

4. 3 Termination of Agreement. The Town and the Service Provider shall have the right to terminate this agreement with or without cause by giving not less than fifteen days ( 15) written notice of termination. In the event of termination, the Service Provider shall deliver to the Town all plans, files, documents, reports, performed to date by the Service Provider. 1LP Building Maintenance Page 5 of 7

ITEM NO. 12.

In the event of such termination, Town shall pay Service Provider an amount that bears the same ratio to the maximum contract price as the work delivered to the Town bears to completed services contemplated under this Agreement, unless such termination is made for cause, in which event, compensation, if any, shall be adjusted in light of the particular facts and circumstances involved in such termination.

4.4 Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Service Provider.

4. 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 JLP Building Maintenance
Attn: Town Clerk 48834 Kato Road, Suite 109A
110 E. Main Street Fremont, CA 94538
Los Gatos, CA 95030
or personally delivered to Service Provider to such address or such other address as Service Provider 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 Service Provider. 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.

JLP Building Maintenance Page 6 of 7

ITEM NO. 12.

IN WITNESS WHEREOF, the Town and Service Provider have executed this Agreement.

Town of Los Gatos by:

Laurel Prevetti, Town Manager
Approved as to Form:

Robert Schultz, n Attorney
Attest:
i MD Shelley
Neis, CIVIC, Tow Clerk Service
Provider, by: f>
Eo Title
1LP
Building Maintenance Page 7of 7

ITEM NO. 12.

Custodial RFP Cost Summary 2019
Attachment 2: Custodial Quote Summary 2019 I
JLP Building Maintenance
Basic SeTimes rvices Bid
Item
Location Per
Annual Description
Unit Price Year Cost 1
Civic Center Janitorial ( except windows) 2, 480 12 29, 760 2 Service Center Janitorial ( except windows) 1, 980 12 23, 760 3 Police Ops Janitorial ( except windows) 1, 980 12 23, 760 4 Library Janitorial ( except windows) 4, 480 12 53, 760 5 Park Restrooms Janitorial ( except windows) 3, 708 12 44, 496 6 Civic Center Windows 1
1, 800 4 7, 200 7
IService Center Windows 1, 200 4 4, 800 8
1 Police Ops Windows 1, 200 4 4, 800 9
Library Windows 4, 500 4 18, 000 230,
336 Additional
ServicesT & M Per Hour 10
Service during daytime hours... $ 33 $ 24. 80 11
Service during evening/ weekend hours... $ 26. 80 12
Service daytime less than 24 hr notice $ 26. 80 13
Service during evening/ weekend hours less 24hr notice... $29. 80 EYHIlbtT P

ITEM NO. 12.

PREPARED BY: Dan Keller
Facilities & Environmental Services Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/04/2024
DATE: May 30, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the Construction Agreement with Tucker Construction Inc. to Increase the Compensation by $13,538 for a Total Agreement Amount Not to Exceed $287,977 for the Adult Recreation Center Americans with Disabilities Act (ADA) Compliant Public Restroom Project (CIP 821-2601)
RECOMMENDATION:

Authorize the Town Manager to execute a First Amendment to the Construction Agreement with Tucker Construction Inc. to increase the compensation by $13,538 for a total agreement amount not to exceed $287,977 for the Adult Recreation Center Americans with Disabilities Act (ADA) Compliant Public Restroom Project (CIP 821-2601)
BACKGROUND:

The Adult Recreation Center was lacking a restroom that is ADA compliant. On June 20, 2023, Tucker Construction Inc. was awarded a Construction Agreement with the Town to add an ADA compliant public restroom in the Adult Recreation Center (CIP# 821-2601). Start of construction was November 17, 2023 and is nearing completion.

DISCUSSION:

Due to inaccuracies in the as-built plans for the building, an extension of the sewer line was required as well as other work. Both electrical and plumbing locations in the building were not accurately shown on the plans which led to damage during construction with added repair and re-connection costs to make the building fully functional for operation.

ITEM NO. 13.

PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the Agreement for Consultant Services with Tucker Construction Inc. for the Adult Recreation Center Americans with Disabilities Act (ADA) Compliant Public Restroom Project (CIP 821-2601)
DATE: May 30, 2024
DISCUSSION (continued):

The added construction costs included saw cutting concrete; excavating; installing and inspecting a new sewer line; compacting soil; pouring concrete; installing new flooring; and completing additional electrical and plumbing work. These costs exhausted the approved 10% contingency for contractor change orders and led to the request for an additional $13,358 from the available project balance.

CONCLUSION:

Authorize the Town Manager to execute a First Amendment to the Construction Agreement with Tucker Construction Inc. to increase the compensation for the Adult Recreation Center ADA Compliant Public Restroom Project (CIP 821-2601).

FISCAL IMPACT:

The adopted Fiscal Year 2023/24 – 2027/28 Capital Improvement Program (CIP) Budget for this project has sufficient funds for the amendment to the contract.

Budget Costs
GFAR $ 183,000
Grants $ 520,861
Total Budget $ 703,861
Costs
Prior Consultant and Construction Services Including
Encumbrances $ 401,666
First Amendment to Construction Agreement with Tucker
Construction (Requested with this Staff Report) $ 13,538 Total Expenditures $ 415,204
Available Balance $ 288,657
Americans with Disabilities Act (ADA) Upgrade Public Restrooms - Adult Recreation CIP No. 821-2601

ITEM NO. 13.

PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the Agreement for Consultant Services with Tucker Construction Inc. for the Adult Recreation Center Americans with Disabilities Act (ADA) Compliant Public Restroom Project (CIP 821-2601)
DATE: May 30, 2024
ENVIRONMENTAL ASSESSMENT:

This is a project as defined under CEQA and is Categorically Exempt (Section 15301) as a modification to an existing facility.

Attachment:

1. First Amendment to Construction Agreement with Exhibit A (Original Agreement and Exhibit A) and Exhibit B (Contract Change Order)

ITEM NO. 13.

First Amendment to Construction Agreement
Tucker Construction, Inc.

FIRST AMENDMENT TO CONSTRUCTION AGREEMENT
This FIRST AMENDMENT TO CONSTRUCTION AGREEMENT is dated for identification 4 th
day of June 2024 and amends that certain Construction Agreement dated July 12, 2023, made by and between the Town of Los Gatos, ("Town,") and Tucker Construction Inc. (“Contractor”) identified as an S Corporation and whose address is 1725 Little Orchard St. Suite D, San Jose, CA 95125.

RECITALS
A. Town and Consultant entered into a Consultant Agreement on July 12, 2023, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Exhibit A to this Amendment.

B. Town desires to amend the Agreement to increase the compensation of the Agreement.

AMENDMENT

1. 2.6 Compensation is amended to read as follows:

Compensation for the Contractor’s professional services shall be increased by $13,537.75, for a total agreement amount not exceed $287,976.75. Payment shall be based upon Town approval of each task based on Exhibit B.

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

ATTACHMENT 1

ITEM NO. 13.

First Amendment to Construction Agreement
Tucker Construction, Inc.

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

Town of Los Gatos: Approved as to Consent:
_______________________________ ______________________________ Laurel Prevetti, Town Manager Mark Tucker, President
Department Approval:
_______________________________________
Nicolle Burnham
Director of Parks and Public Works
Approved as to Form: Attest:
______________________________ ______________________________ Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk

ITEM NO. 13.

CONTRACT CHANGE ORDER
CCO NO.: 2
PROJECT NAME: Los Gatos Adult Recreation Center Restroom Remodel for ADA Compliance DATE: 5/15/2024 OWNER NAME: Town of Los Gatos JOB NO.: 421-821-2601-82303 The following changes are hereby made to CONTRACT DOCUMENTS:

ITEM UNIT UNIT PRICE QUANTITY EXTENSION
1 Under Slab Conduit Repair
Subcontractor: Repair damaged conduit and repull wires $1,460.50 2 1" Waterline Extension
Subcontractor: Bring water from existing restroom to (N) location $4,112.40 Contractor: Patch and paint at ceiling acess in elevator room, add access door Hrs $105.00 8 $840.00 Material Cost $85.00
3 Rain Water Leader
Subcontractor: Relocate (E) RWL to clear obstruction for (N) restroom door $2,218.35 Contractor: Framing Hrs $125.00 4 $500.00
Material Cost $40.00
4 Hallway Repairs
Subcontractor: Remove/relocate existing electrical $1,403.00 Contractor: Remove header and framing patch and paint Hrs $125.00 12 $1,500.00 Material Cost $355.00
5 Locating
Subcontractor: Scope drain lines for CCO#1 $1,023.50
Total Cost of CHANGE $13,537.75
Total Credit of CHANGE
Previous CHANGE ORDERS $24,949.00
Original CONTRACT $249,490.00
CONTRACT Amount to Date $287,976.75
Date
Date

DESCRIPTION OF CHANGED WORK
Contractor
Contractor hereby agrees to accept the amount set forth herein as payment in full for the work described and further agrees that Contractor is entitled to no additional time or compensation for such work other than as set forth herein.

The CONTRACT TIME will be increased by 10 working days.

ACCEPTANCE
I hereby certify that an unexpended appropriation is available in the above fund for the above contract as estimated, and that funds are available as of this date of signature.

Authorized Signature
1725-D Little Orchard Street San Jose, CA 95125 (408) 287-1424 Fax: (408) 287-1448 Lic #454738 E-Mail: [email protected]

EXHIBIT B

ITEM NO. 13.

Construction Agreement
Tucker Construction

CONSTRUCTION AGREEMENT
This Agreement is dated for identification this 12th of July 2023 and is made by and between the TOWN OF LOS GATOS, a California municipal corporation, whose address is 110 East Main Street, Los Gatos, California 95030 (hereinafter "TOWN"), and Tucker Construction, Inc., identified as an S Corporation and whose address is 1725 Little Orchard St. Suite D, San Jose, CA 95125 (hereinafter "CONTRACTOR").

NOW, THEREFORE, the parties agree:

ARTICLE I: WORK TO BE DONE AND DOCUMENTS FORMING THE CONTRACT.

That for and in consideration of the payments and agreements hereinafter mentioned, to be made and performed by the said TOWN, and under the conditions expressed in the two bonds hereunto annexed, the said CONTRACTOR agrees with the said TOWN, at his own proper cost and expense, to do all the work and furnish all the materials and equipment necessary to construct and complete, in accordance with the plans and specifications hereinafter mentioned, in a good, workmanlike and substantial manner, under the supervision of the Town Engineer, or his, of the TOWN OF LOS GATOS, California, all the works and improvements described, mentioned and set forth in those plans and specifications on file in the Office of the Parks and Public Works of said TOWN, entitled:
“Plans and Specifications for
Project #421-821-2601-82303 FY 2022/23 Adult Recreation Center ADA Compliant Public Restroom”
which said plans and specifications and all the documents therein contained, including the TOWN OF LOS GATOS's Standard Provisions, are hereby specially referred to and by such reference made part of this contract.

ARTICLE II: CONTRACTOR'S ACCEPTANCE
CONTRACTOR agrees to receive and accept the prices shown on Exhibit “A” $249,490 and up to $24,949 in change orders, which is attached hereto and incorporated by reference herewith, as full compensation for furnishing all materials and equipment and for doing all the work described in the contract documents; also for all loss or damage as provided in the contract documents in the prosecution of the work until its acceptance by the Town Council of the TOWN OF LOS GATOS, and for well and faithfully completing the work, and the whole thereof, in the manner and according to the contract documents, plans and specifications, and the requirements of the Town Engineer.

DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E

EXHIBIT A

ITEM NO. 13.

Construction Agreement
Tucker Construction
ARTICLE III: ACCEPTANCE BY TOWN
The said TOWN hereby promises and agrees with the said CONTRACTOR to employ, and does hereby employ the said CONTRACTOR to provide the materials and to do the work according to the terms and conditions herein contained and referred to, for the prices aforesaid, and hereby contracts to pay the same at the time, in the manner and upon the conditions above set forth; and the said parties for themselves their heirs, executors, administrators, successors and assigns, do hereby agree to the full performance of the covenants herein contained.

ARTICLE IV: COMPLETION OF AGREEMENT
Reference is made to Part I – Page 1 of the TOWN's Project Specifications Notice to Contractors which are hereby made a part of this contract. Inasmuch as the work called for under this contract concerns a needed public improvement, the time of performance and completion of this work is of the essence of this contract. It is expressly understood and agreed by the parties hereto that all the work called for under this contract, in all its parts and requirements, shall be completed ninety (90) working days from Notice to Proceed.

ARTICLE V: HOURS OF LABOR
The CONTRACTOR shall forfeit, as a penalty, to the TOWN, Twenty-Five Dollars ($25) for each workman employed in the execution of the contract by him or by any subcontractor for each calendar day during which any workman is required or permitted to labor more than eight (8) hours in violation of the provisions of Sections 1810-1815 inclusive of the Labor Code and all amendments thereto.

ARTICLE VI: APPRENTICES
Attention is directed to the provisions in Sections 1777.5, 1777.6 and 1777.7 of the Labor Code governing the employment of apprentices by the CONTRACTOR or any subcontractor under him. CONTRACTOR and any of his subcontractors shall comply with the requirements of said sections of the Labor Code; CONTRACTOR shall have full responsibility for compliance with the said sections regardless of any other contractual or employment relationships alleged to exist.

Information relative to apprenticeship standards and other requirements may be obtained from the Director of Industrial Relations ex officio the Administrator of Apprenticeship, San Francisco, California or from the Division of Apprenticeship Standards at its branch offices.

ARTICLE VII: NONDISCRIMINATION
The CONTRACTOR sub recipient or subcontractor shall not discriminate on the basis of race, color, national origin or sex in the performance of this contract. CONTRACTOR shall carry DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E

ITEM NO. 13.

Construction Agreement
Tucker Construction
out applicable requirements of 49 CFR Part 26 in the award and administration of DOT-assisted contracts.

Failure by CONTRACTOR to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as recipient deems appropriate.

ARTICLE VIII: INDEPENDENT CONTRACTOR
It is agreed that CONTRACTOR is an independent contractor, and all persons working for or under the direction of CONTRACTOR are CONTRACTOR's agents, servants and employees, and said persons shall not be deemed agents, servants or employees of TOWN.

ARTICLE IX: OWNERSHIP OF DATA AND DOCUMENTS
CONTRACTOR agrees that all records, specifications, data, maps, designs, graphics, writings, recordings and other tangible materials regardless of form or format, including, without limitation, electronically transmitted documents and ACAD files, and other collateral materials collected, compiled, drafted, prepared, produced and/or generated in the performance of this Agreement shall be the property of TOWN. CONTRACTOR shall regularly provide such documents to TOWN upon TOWN's request. In the event that this Agreement is terminated prior to completion of the scope of work, CONTRACTOR shall provide all such data and documents to TOWN forthwith.

ARTICLE X: INDEMNIFICATION
To the fullest extent permitted by law, CONTRACTOR shall defend, indemnify, and hold harmless the TOWN, its elected and appointed officials, employees, and agents (“Indemnified Parties”), from and against any claims, allegations, damages, awards, judgments, and expenses of every kind or character, including, but not limited to, attorney fees and expert costs, which may arise out of or result from in whole or in part CONTRACTOR’s performance of the work, except to the extent caused by the sole negligence or willful misconduct of Indemnified Parties.

CONTRACTOR’s obligation to defend Indemnified Parties shall be immediate upon written notice by TOWN to CONTRACTOR and CONTRACTOR shall, if requested by TOWN, defend Indemnified Parties using counsel approved by TOWN in its sole discretion.

ARTICLE XI: INSURANCE
a. Commercial General Liability/Automobile Liability Insurance:

CONTRACTOR shall obtain and maintain Commercial General Liability insurance in the amount of Two Million Dollars ($2,000,000) and Automobile Liability insurance in the amount of One Million Dollars ($1,000,000) per occurrence. If a general aggregate limit is used, either the general aggregate limit shall apply separately to this contract or the general aggregate limit DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E

ITEM NO. 13.

Construction Agreement
Tucker Construction
shall be twice the required occurrence limit. CONTRACTOR's insurance coverage shall be written on an occurrence basis.
b. Workers' Compensation Insurance:

CONTRACTOR shall obtain and maintain statutory Workers' Compensation insurance and Employer's Liability insurance in the amount of One Million Dollars ($1,000,000) per accident.

CONTRACTOR is familiar with the Workers' Compensation laws of California (generally contained in Section 3700 of the Labor Code), including those provisions which provide for specific exemptions from the requirement that all employers must carry Workers' Compensation insurance, and CONTRACTOR maintains they are exempted under the law from the requirement to maintain Workers' Compensation insurance coverage.

In addition, during the term of any work for TOWN under said agreement:
(1) CONTRACTOR will not employ any person in any manner so as to become subject to the Workers' Compensation laws of California, or (2) should CONTRACTOR become subject to the Workers' Compensation provisions of Section 3700 of the Labor Code for any reason, CONTRACTOR shall forthwith comply with those provisions and send evidence of financial compliance to TOWN.
c. Acceptability of Insurers: Insurance is to be placed with insurers with a current Best Rating of A:VII unless otherwise acceptable to TOWN. d. Verification of Coverage: Insurance, deductibles or self-insurance retentions shall be subject to TOWN's approval. Original Certificates of Insurance with endorsements shall be received and approved by TOWN before work commences, and insurance must be in effect for the duration of the contract. The absence of insurance or a reduction of stated limits shall cause all work on the project to cease. Any delays shall not increase costs to TOWN or increase the duration of the project.
e. Other Insurance Provisions:
(1) The TOWN OF LOS GATOS, its elected and appointed officials, employees, and agents are to be covered as additional insured by Endorsement CG 20 10 11 85 or other endorsement approved by Town Attorney for Commercial General and Automobile Liability coverage.
(2) For any claims related to this project, CONTRACTOR's insurance coverage shall be primary and any insurance or self-insurance maintained by TOWN, its elected and appointed, officials, employees, and agents shall not contribute to it. (3) Each insurance policy required shall be endorsed that a thirty (30) day notice be given to TOWN in the event of cancellation or modification to the stipulated insurance coverage.

DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E

ITEM NO. 13.

Construction Agreement
Tucker Construction
(4) In the event CONTRACTOR employs subcontractors as part of the work covered by this Agreement, it shall be the responsibility of CONTRACTOR to ensure that all subcontractors comply with the same insurance requirements that are stated in this Agreement. (5) Approval of the insurance by TOWN or acceptance of the Certificate of Insurance by TOWN shall not relieve or decrease the extent to which CONTRACTOR may be held responsible for payment of damages resulting from CONTRACTOR's services or operation pursuant to this Agreement, nor shall it be deemed a waiver of TOWN's rights to insurance coverage hereunder.
(6) If, for any reason, CONTRACTOR fails to maintain insurance coverage that is required pursuant to this contract, the same shall be deemed a material breach of contract.

TOWN, at its sole option, may terminate this contract and obtain damages from CONTRACTOR resulting from said breach. Alternately, TOWN may purchase such required insurance coverage, and without further notice to CONTRACTOR, TOWN may deduct from sums due to CONTRACTOR any premium costs advanced by TOWN for such insurance.

ARTICLE XII: BONDING REQUIREMENT
CONTRACTOR agrees to post a Faithful Performance Bond and a payment bond for Labor and Materials, or other guarantees, in the required $249,490 upon bond forms provided by the TOWN, guarantying the performance of the terms of this Agreement. Surety issuing bonds for CONTRACTOR shall be approved by the U.S. Department of Treasury's Financial Management Service and shall be listed on the most current Treasury Circular 570 as contained in the Federal Register.

Contractor agrees to allow five percent of the faithful performance bond to remain in effect for a period of two years following Town Council project acceptance as guarantee for any needed repair or replacement caused by defective materials and workmanship.

ARTICLE XIII: MAINTENANCE AND GUARANTY
CONTRACTOR shall promptly repair, replace, restore, or rebuild, as the TOWN may determine, any finished product in which defects of materials or workmanship may appear or to which damage may occur because of such defects, during a two (2) year period subsequent to the date of final acceptance.

This article does not in any way limit the guaranty on any items for which a longer guaranty is specified or on any items which a manufacturer gives a guaranty for a longer period, nor does it limit the other remedies of the TOWN in respect to a latent defect, fraud or implied warranties. CONTRACTOR shall furnish the TOWN all appropriate guaranties or warranty certificates upon completion of the project.

DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E

ITEM NO. 13.

Construction Agreement
Tucker Construction
ARTICLE XIV: SHORING FOR TRENCHES
If the contract specifies an expenditure of Twenty-Five Thousand Dollars ($25,000) or greater for trenching, and if the depth of the trench is five feet (5') or more, then Section 6705 of the Labor Code shall also be applicable.

ARTICLE XV: APPLICABLE LAWS AND ATTORNEY'S FEES
This Agreement shall be construed and enforced pursuant to the laws of the State of California. Should any legal action be brought by a party for breach of this Agreement or to enforce any provision herein, the prevailing party of such action shall be entitled to reasonable attorneys' fees, court costs, and such other costs as may be fixed by the court. Reasonable attorneys' fees of the TOWN Attorney's Office, if private counsel is not used, shall be based on comparable fees of private attorneys practicing in Santa Clara County.

ARTICLE XVI: LIQUIDATED DAMAGES
It is mutually agreed by CONTRACTOR and TOWN that in the event that completion of the construction by CONTRACTOR under this Agreement is delayed beyond ninety (90) working days from Notice to Proceed, TOWN will suffer damages and will incur other costs and expenses of a nature and amount which is difficult or impractical to determine. The Parties agree that by way of ascertaining and fixing the amount of damages, costs and expenses, and not by way of penalty, CONTRACTOR shall pay to TOWN the sum of Five Hundred Dollars ($500.00) per day in liquidated damages for each and every calendar day such delay in completion of the services under this Agreement continues beyond ninety (90) working days from Notice to Proceed. In the event that the liquidated damages are not paid, CONTRACTOR agrees that TOWN may deduct the amount of unpaid damages from any money due or that may become due to CONTRACTOR under this Agreement.

ARTICLE XVII: INTERPRETATION OF CONTRACT
It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal of said CONTRACTOR, then this instrument shall control and nothing herein shall be considered as an acceptance of the said terms of said proposal conflicting herewith.

ARTICLE XVIII: AMENDMENTS AND CHANGE ORDERS
This Agreement may be amended from time to time as necessary by formal and written amendment or authorized change order executed by the Town Manager or designee and principal acting on behalf of the CONTRACTOR.

DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E

ITEM NO. 13.

Construction Agreement
Tucker Construction
ARTICLE XIX: DBE RESPONSIBILITIES
For projects that are State or Federal funding; With respect to Disadvantaged Business Enterprises, CONTRACTOR shall do the following:
(1) Pay each subcontractor under this prime contract for satisfactory performance of its contract no later than ten (10) days from the receipt of each payment the prime contractor receives from TOWN. Any delay or postponement of payment from the above-referenced time frame may occur only for good cause following written approval of TOWN. This clause applies to both DBE and non-DBE subcontractors.
(2) Release all retainage owed to a subcontractor for satisfactory completion of the accepted work within thirty (30) days after TOWN's payment to CONTRACTOR. Any delay or postponement of payment from the above-referenced time frame may occur only for good cause following written approval of TOWN. This clause applies to both DBE and non-DBE subcontractors.

ARTICLE XX: PREVAILING WAGES
Prevailing Wage. This project is subject to the requirements of Section 1720 et seq. of the California Labor Code requiring the payment of prevailing wages, the training of apprentices and compliance with other applicable requirements. Contractors and all subcontractors who perform work on the project are required to comply with these requirements. Prevailing wages apply to all projects over $1,000 which are defined as a “public work” by the State of California. This includes: construction, demolition, repair, alteration, maintenance and the installation of photovoltaic systems under a Power Purchase Agreement when certain conditions are met under Labor Code Section 1720.6.

This include service and warranty work on public buildings and structures.

1. The applicable California prevailing wage rate can be found at www.dir.ca.gov and are on file with the Town of Los Gatos Parks and Public Works Department, which shall be available to any interested party upon request. The contractor is also required to have a copy of the applicable wage determination posted and/or available at each jobsite.

2. Specifically, contractors are reminded of the need for compliance with Labor Code Section 1774-1775 (the payment of prevailing wages and documentation of such), Section 1776 (the keeping and submission of accurate certified payrolls) and 1777.5 in the employment of apprentices on public works projects. Further, overtime, weekend and holiday pay, and shift pay must be paid pursuant to applicable Labor Code section.

3. The public entity for which work is being performed or the California Department of Industrial Relations may impose penalties upon contractors and subcontractors for failure to comply with prevailing wage requirements. These penalties are up to $200 per day per worker for each wage violations identified; $100 per day per worker for failure to provide the required paperwork and documentation requested within a 10-day window; and $25 per day per worker for any overtime violation.

DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E

ITEM NO. 13.

Construction Agreement
Tucker Construction

4. As a condition to receiving progress payments, final payment and payment of retention on any and all projects on which the payment of prevailing wages is required, the contractor agrees to present to the TOWN, along with its request for payment, all applicable and necessary certified payrolls (for itself and all applicable subcontractors) for the time period covering such payment request. The term “certified payroll” shall include all required documentation to comply with the mandates set forth in Labor Code Section 1720 et seq, as well as any additional documentation requested by the Agency or its designee including, but not limited to: certified payroll, fringe benefit statements and backup documentation such as monthly benefit statements, employee timecards, copies of wage statements and cancelled checks, proof of training contributions (CAC2 if applicable), and apprenticeship forms such as DAS-140 and DAS-142.

5. In addition to submitting the certified payrolls and related documentation to the TOWN, the contractor and all subcontractors shall be required to submit certified payroll and related documents electronically to the California Department of Industrial Relations.

Failure to submit payrolls to the DIR when mandated by the project parameters shall also result in the withholding of progress, retention and final payment.

6. No contractor or subcontractor may be listed on a bid proposal for a public works project unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].

7. No contractor or subcontractor may be awarded a contract for public work on a public works project, unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. Contractors MUST be a registered “public works contractor” with the DIR AT THE TIME OF BID. Where the prime contract is less than $15,000 for maintenance work or less than $25,000 for construction alternation, demolition or repair work, registration is not required.

8. Should any contractor or subcontractors not be a registered public works contractor and perform work on the project, Contractor agrees to fully indemnify the TOWN for any fines assessed by the California Department of Industrial Relations against the TOWN for such violation, including all staff costs and attorney’s fee relating to such fine.

9. The TOWN shall withhold any portion of a payment; including the entire payment amount, until certified payroll forms and related documentation are properly submitted, reviewed and found to be in full compliance. In the event that certified payroll forms do not comply with the requirements of Labor Code Section 1720 et seq., the TOWN may continue to hold sufficient funds to cover estimated wages and penalties under the contract.

DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E

ITEM NO. 13.

Construction Agreement
Tucker Construction
ARTICLE XXI: ENTIRE AGREEMENT
This Agreement contains the entire understanding between the parties with respect to the subject matter herein. There are no representations, agreements or understandings (whether oral or written) between or among the parties relating to the subject matter of this Agreement which are not fully expressed herein.

ARTICLE XXII: PUBLIC RECORDS
The parties recognize and acknowledge that TOWN is subject to the California Public Records Act, California Government Code Section 6250 and following. Public records are subject to disclosure.

ARTICLE XXIII: NOTICES
Any notice required to be given to CONTRACTOR shall be deemed to be duly and properly given if mailed to CONTRACTOR, postage prepaid, addressed to:

Tucker Construction, Inc.
1725 Little Orchard St. Suite D
San Jose, CA 95125
or personally delivered to CONTRACTOR at such address or at such other addresses as CONTRACTOR may designate in writing to TOWN.

Any notice required to be given TOWN shall be deemed to be duly and properly given if mailed to TOWN, postage prepaid, addressed to:

Nicolle Burnham
Parks and Public Works Director

TOWN OF LOS GATOS
41 Miles Avenue
Los Gatos, California 95030
or personally delivered to TOWN at such address or at such other addresses as TOWN may designate in writing to CONTRACTOR.

ARTICLE XXIV: SECTION 7106 FORM
Attached to the Agreement is a fully executed and sworn non-collusion affidavit as required by Section 7106 of the California Public Contracts Code. Said affidavit is incorporated herein by this reference.

DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E

ITEM NO. 13.

Construction Agreement
Tucker Construction
IN WITNESS WHEREOF, the parties to these presents have hereunto set their hands the year and date first written above.

APPROVED AS TO CONTENT:

Nicolle Burnham
Director of Parks and Public Works
APPROVED AS TO FORM:

Gabrielle Whelan, Town Attorney
"TOWN":

TOWN OF LOS GATOS
By:

Laurel Prevetti
Town Manager
Attest:
______________________________
Wendy Wood, CMC, Town Clerk
CONTRACTOR:

Name:

Tucker Construction, Inc.______________
Address: ___________________________
___________________________________
Tax ID No. or SSAN:

By: Mark Tucker

Title: President__________________________
By:

Title:

DocuSign Envelope ID: 504A7815-8551-4051-A72D-3940B4D85A7E 1725-D Little Orchard Street
San Jose ca 95125
77-0466092

ITEM NO. 13.

EXHIBIT A
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May 18, 2023
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ITEM NO. 13.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/04/2024
DATE: May 30, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: 2024 Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813- 9921):
a. Award and Authorize the Town Manager to Execute an Agreement for Consultant Services with Ninyo & Moore for Materials Testing in an Amount Not to Exceed $18,555; and
b. Authorize an Expenditure Budget Transfer in an Amount of $18,555 from the Annual Street Repair and Resurfacing Project (CIP No. 811-9901) to the Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813- 9921)
RECOMMENDATION:
2024 Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921):
a. Award and authorize the Town Manager to execute an agreement for consultant services for materials testing with Ninyo & Moore in an amount not to exceed $18,555; and b. Authorize an expenditure budget transfer in an amount of $18,555 from the Annual Street Repair and Resurfacing Project (CIP No. 811-9901) to the Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813-9921).

REMARKS:

On May 7, 2024, Council approved award and execution of an agreement with Villalobos and Associates for the 2024 Annual Curb, Gutter, and Sidewalk project (#813-9921). For this project, there is a need for materials testing as the Town does not have its own testing laboratory.

ITEM NO. 14.

PAGE 2 OF 2
SUBJECT: 2024 Annual Curb, Gutter, and Sidewalk Maintenance Project (CIP No. 813- 9921)
DATE: May 30, 2024
REMARKS (continued):

On February 20, 2024, Council approved the On-Call Consultants List for Engineering and Design Support Services. Staff requested proposals from the three listed materials testing consultants on the Council approved on-call list, BSK Associates, ISI Inspection Services, and Ninyo and Moore. Three proposals were submitted, evaluated, and Ninyo and Moore was selected (Attachment 2). Services include subgrade testing, concrete sampling and testing, daily field reporting.

FISCAL IMPACT:

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Agreement for Consultant Services

2. Ninyo & Moore Proposed Scope of Services
Budget Costs
GFAR $ 410,682
Budget Adjustment from 411-811-9901 (Approved by Town Council on 5/7/24) $ 185,331 Budget Adjustment from 411-811-9901 (Requested with this Staff Report) $ 18,555 Budget $ 614,568
2023 Project Construction Costs (7/1/23-7/3/23 Service) $ 89,535 Contract with Precision Concrete for Additional Sidewalk Repair Services $ 44,000 Misc. Expenses $ 50
Construction - Public Works Contract (Approved by Town Council on 5/7/24) $ 409,480 Construction Contingency - Public Works Contract (10%) $ 40,948 Temporary/Part-Time Staff $ 12,000
Consultant Agreement (Proposed with this Staff Report) $ 18,555 Costs to Date $ 614,568
Available Balance $ (0)
2024 Curb, Gutter, and Sidewalk Maintenance Project
CIP No. 813-9921

ITEM NO. 14.

Agreement for Consultant Services ATTACHMENT 1
Ninyo & Moore

AGREEMENT FOR CONSULTANT SERVICES

PREAMBLE
THIS AGREEMENT is dated for identification on this 4th day of June 2024 by and between TOWN OF LOS GATOS, a California municipal corporation, (“Town”) Ninyo & Moore (“Consultant”), identified as an S Corporation and whose address is 1301 Marina Village Parkway, Suite 110, Alameda, CA 94501. This Agreement is made with reference to the following facts.

I. RECITALS

1.1 The Town desires to engage Consultant to provide materials testing for the 2024 Annual Curb, Gutter, and Sidewalk Maintenance Project.

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 April 17, 2024, 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 December 31, 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

ITEM NO. 14.

Agreement for Consultant Services ATTACHMENT 1
Ninyo & Moore
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 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 $18,555, 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
Email (preferred): [email protected]

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

ITEM NO. 14.

Agreement for Consultant Services ATTACHMENT 1
Ninyo & Moore
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 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

ITEM NO. 14.

Agreement for Consultant Services ATTACHMENT 1
Ninyo & Moore
an amount not less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage. 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

ITEM NO. 14.

Agreement for Consultant Services ATTACHMENT 1
Ninyo & Moore
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. As required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than one million dollars ($1,000,000) per accident for bodily injury or disease.

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:

ITEM NO. 14.

Agreement for Consultant Services ATTACHMENT 1
Ninyo & Moore
Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
Ninyo & Moore
Attn: Bradon Wilken
1301 Marina Village Parkway, Suite 110
Alameda, CA 94501
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.

ITEM NO. 14.

Agreement for Consultant Services ATTACHMENT 1
Ninyo & Moore
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement.

Town of Los Gatos by:

Laurel Prevetti, Town Manager

Recommended by:

Nicolle Burnham
Director of Parks and Public Works
Consultant by:

Brandon Wilken, Principal Geologist
Approved as to Form:

Gabrielle Whelan, Town Attorney
Attest:

Wendy Wood, CMC, Town Clerk

ITEM NO. 14.

April 17, 2024
Proposal No. 08SJO02-02606
Ms. Janice Chin, Assistant Engineer
Town of Los Gatos
Parks and Public Works Department
41 Miles Avenue,
Los Gatos California 95030
Subject: Proposal for Materials Testing Services for the 2024 Annual Curb, Gutter and Sidewalk Maintenance Project Los Gatos, California
Project No.: 813-9921
Dear Ms. Chin:

Ninyo & Moore is pleased to submit this proposal to provide materials testing services for the 2024 Annual Curb, Gutter and Sidewalk Maintenance Project in Los Gatos, California. This proposal includes our proposed scope of services and associated cost estimates, which are based on our review of the project plans, specifications, and our previous experience with similar projects of this nature.

PROPOSED SCOPE OF SERVICES
Based on our review of the project documents, and our experience with similar projects, we propose to provide the following scope of services:
 Sampling of subgrade and aggregate base from the job site and transportation to our laboratory for testing.
 Maximum compacted density determinations of soils and aggregates in the laboratory accordance with ASTM D1557 for subgrade and aggregate base.  In-place field density testing of soils and aggregates using a nuclear density gauge to determine the relative compaction of compacted subgrade and aggregate base.  Concrete sampling and testing including slump and temperature tests of concrete and cast compressive strength test specimens (1 set / 150 cubic yards) on site.  Concrete sample pick-up and transportation to our laboratory for curing and testing.  Compression testing of concrete cylinders in the laboratory.  Prepare daily field reports documenting observations and field test results, and reports of laboratory testing to be submitted to the project team. 2149 O'Toole Avenue, Suite 30 | San Jose, California 95131 | p. 408.435.9000 | www.ninyoandmoore.com

EXHIBIT A

ITEM NO. 14.

Ninyo & Moore | 2024 Annual Curb, Gutter and Sidewalk Maintenance, Los Gatos, California | 08SJO02-02606 | April 17, 2024  Prepare a final report at the completion of the project

ESTIMATED FEE
We propose to perform the scope of services described above, subject to the listed assumptions, on a time-and-materials basis in accordance with the attached Schedule of Fees.

Our fee estimate for the scope of services described for the project is $18,555 (Eighteen Thousand Five Hundred Fifty Five Dollars). Our detailed estimate of fee is attached (Table 1). Should the construction schedule require a lesser or greater amount of services than that estimated herein, the cost will vary accordingly.

AUTHORIZATION
Please provide us with a Purchase Order as written authorization for us to proceed with the proposed services.

We sincerely appreciate the opportunity to submit this proposal and look forward to working with you on this project.

Respectfully submitted,

NINYO & MOORE
Rowell Sta Ana
Senior Staff Engineer
Lothus Hennefer
Construction Services Manager
RSA/LMH/rk
Attachments: Table 1 - Breakdown of Estimated Fee
Schedule of Fees

ITEM NO. 14.

Senior Technician Compaction Testing (Subgrade & Aggregate Base) 80 hours @ 110.00 $ /hour 8,800.00 $ Senior Technician Concrete Sampling & Testing (Slump & Temperature) 20 hours @ 110.00 $ /hour 2,200.00 $ Lab Compacted Maximum Density (ASTM D1557) For Subgrade & Aggregate Base 5 tests @ 340.00 $ /test 1,700.00 $ Compression Tests 5 Concrete Cylinders / 150 Cubic Yards (4"x 8" Cylinders) 25 tests @ 35.00 $ /test 875.00 $ Subtotal 13,575.00 $
Field Vehicle Usage 100 hours @ 15.00 $ /hour 1,500.00 $ Equipment Usage 100 hours @ 12.00 $ /hour 1,200.00 $
Subtotal 2,700.00 $
Geotechnical / Project Assistant Data Compilation & Distribution and Dispatch 4 hours @ 95.00 $ /hour 380.00 $ Project Manager Meetings, Project Coordination and Progress Report Preparation 8 hours @ 185.00 $ /hour 1,480.00 $ Principal Engineer Project Oversight & Consultation 2 hours @ 210.00 $ /hour 420.00 $ Subtotal 2,280.00 $
TOTAL ESTIMATED FEE 18,555.00 $
Table 1 - Breakdown of Estimated Fee
Materials Testing
Project Management
Reimbursables
Ninyo & Moore | 2024 Annual Curb, Gutter and Sidewalk Maintenance, Los Gatos, California | 08SJO02-02606 | April 17, 2024 1

ITEM NO. 14.

Ninyo & Moore | 2024 Annual Curb, Gutter and Sidewalk Maintenance, Los Gatos, California | April 17, 2024 | April 17, 2024 CA14 Schedule of Fees
Hourly Charges for Personnel
Professional Staff
Principal Engineer/Geologist/Environmental Scientist/Certified Industrial Hygienist ............................................... $ 210 Senior Engineer/Geologist/Environmental Scientist ................................................................................................ $ 200 Senior Project Engineer/Geologist/Environmental Scientist ..................................................................................... $ 195 Project Engineer/Geologist/Environmental Scientist ................................................................................................ $ 185 Senior Staff Engineer/Geologist/Environmental Scientist ........................................................................................ $ 170 Staff Engineer/Geologist/Environmental Scientist .................................................................................................... $ 155 GIS Analyst ................................................................................................................................................................ $ 130 Technical Illustrator/CAD Operator ........................................................................................................................... $ 110 Field Staff
Certified Asbestos/Lead Technician ......................................................................................................................... $ 195 Field Operations Manager ......................................................................................................................................... $ 130 Nondestructive Examination Technician (UT, MT, LP) ............................................................................................ $ 125 Supervisory Technician ............................................................................................................................................. $ 120 Special Inspector (Concrete, Masonry, Structural Steel, Welding, and Fireproofing) .............................................. $ 115 Senior Technician ...................................................................................................................................................... $ 110 Technician ................................................................................................................................................................ $ 110 Administrative Staff
Information Specialist ................................................................................................................................................ $ 90 Geotechnical/Environmental/Laboratory Assistant ....................................................................................................$ 95 Data Processor .......................................................................................................................................................... $ 75 Other Charges
Concrete Coring Equipment (includes technician) ................................................................................................ $ 190/hr Anchor Load Test Equipment (includes technician) ................................................................................................ $ 190/hr GPR Equipment ....................................................................................................................................................... $ 180/hr State of California Prevailing Wage Surcharge ....................................................................................................... $ 30/hr Inclinometer .............................................................................................................................................................. $ 100/hr Hand Auger Equipment ........................................................................................................................................... $ 80/hr Rebar Locator (Pachometer) ................................................................................................................................ $ 25/hr Vapor Emission Kit ................................................................................................................................................... $ 65/kit Nuclear Density Gauge ............................................................................................................................................ $ 12/hr X-Ray Fluorescence ................................................................................................................................................ $ 70/hr PID/FID..................................................................................................................................................................... $ 25/hr Air Sampling Pump .................................................................................................................................................. $ 10/hr Field Vehicle ............................................................................................................................................................. $ 15/hr Expert Witness Testimony ....................................................................................................................................... $ 450/hr Direct Expenses ....................................................................................................................................................... Cost plus 15 % Special equipment charges will be provided upon request.

Notes
Our field services, are charged at a 4-hour minimum, and 8-hour minimum for hours exceeding 4 hours. Overtime rates at 1.5 times the regular rates will be charged for work performed in excess of 8 hours in one day Monday through Friday and all day on Saturday. Rates at twice the regular rates will be charged for all work in excess of 12 hours in one day, all day Sunday and on holidays.

Field services that may be subject to prevailing wage in accordance with AB 1768 and Prevailing Wage Determinations, will be subject to a prevailing wage surcharge as shown in our Schedule of Fees. Our rates will be adjusted in conjunction with the increase in the Prevailing Wage Determination during the life of the project, as applicable.

The terms and conditions are included in Ninyo & Moore’s Work Authorization and Agreement form.

ITEM NO. 14.

Ninyo & Moore | 2024 Laboratory Testing
Schedule of Fees for Laboratory Testing

SOILS CONCRETE
Atterberg Limits, D 4318, CT 204 ............................................................. $ 170 Compression Tests, 6x12 Cylinder, C 39 ................................................... $ 35 California Bearing Ratio (CBR), D 1883................................................... $ 550 Concrete Mix Design Review, Job Spec.....................................................$ 300 Chloride and Sulfate Content, CT 417 & CT 422 .................................... $ 175 Concrete Mix Design, per Trial Batch, 6 cylinder, ACI ............................... $ 850 Consolidation, D 2435, CT 219................................................................. $ 300 Concrete Cores, Compression (excludes sampling), C 42........................$ 120 Consolidation, Hydro-Collapse only, D 2435 ........................................... $ 150 Drying Shrinkage, C 157 .............................................................................. $ 400 Consolidation – Time Rate, D 2435, CT 219........................................... $ 200 Flexural Test, C 78 .......................................................................................$ 85 Direct Shear – Remolded, D 3080 ............................................................ $ 350 Flexural Test, C 293 ..................................................................................... $ 85 Direct Shear – Undisturbed, D 3080......................................................... $ 300 Flexural Test, CT 523...................................................................................$ 95 Durability Index, CT 229 ............................................................................ $ 175 Gunite/Shotcrete, Panels, 3 cut cores per panel and test, ACI ................ $ 275 Expansion Index, D 4829, IBC 18-3......................................................... $ 190 Lightweight Concrete Fill, Compression, C 495 .........................................$ 80 Expansion Potential (Method A), D 4546 ................................................. $ 170 Petrographic Analysis, C 856 ....................................................................... $ 2,000 Geofabric Tensile and Elongation Test, D 4632...................................... $ 200 Restrained Expansion of Shrinkage Compensation...................................$ 450 Hydraulic Conductivity, D 5084 ................................................................. $ 350 Splitting Tensile Strength, C 496 ................................................................. $ 100 Hydrometer Analysis, D 6913, CT 203..................................................... $ 220 3x6 Grout, (CLSM), C 39..............................................................................$ 55 Moisture, Ash, & Organic Matter of Peat/Organic Soils .......................... $ 120 2x2x2 Non-Shrink Grout, C 109.................................................................. $ 55 Moisture Only, D 2216, CT 226 ................................................................ $ 35 Moisture and Density, D 2937 ................................................................... $ 45 ASPHALT Permeability, CH, D 2434, CT 220 ........................................................... $ 300 Air Voids, T 269 ............................................................................................ $ 85 pH and Resistivity, CT 643........................................................................ $ 175 Asphalt Mix Design, Caltrans (incl. Aggregate Quality) .............................$ 4,500 Proctor Density D1557, D 698, CT 216, AASHTO T-180 ....................... $ 220 Asphalt Mix Design Review, Job Spec ........................................................ $ 180 Proctor Density with Rock Correction D 1557.......................................... $ 340 Dust Proportioning, CT LP-4........................................................................$ 85 R-value, D 2844, CT 301 ........................................................................... $ 375 Extraction, % Asphalt, including Gradation, D 2172, CT 382 .................... $ 250 Sand Equivalent, D 2419, CT 217............................................................ $ 125 Extraction, % Asphalt without Gradation, D 2172, CT 382........................$ 150 Sieve Analysis, D 6913, CT 202 ............................................................... $ 145 Film Stripping, CT 302 .................................................................................. $ 120 Sieve Analysis, 200 Wash, D 1140, CT 202............................................ $ 100 Hveem Stability and Unit Weight D 1560, T 246, CT 366..........................$ 225 Specific Gravity, D 854 .............................................................................. $ 125 Marshall Stability, Flow and Unit Weight, T 245 ......................................... $ 240 Thermal Resistivity (ASTM 5334, IEEE 442)........................................... $ 925 Maximum Theoretical Unit Weight, D 2041, CT 309..................................$ 150 Triaxial Shear, C.D, D 4767, T 297 ........................................................... $ 550 Moisture Content, CT 370 ............................................................................ $ 95 Triaxial Shear, C.U., w/pore pressure, D 4767, T 2297 per pt................ $ 450 Moisture Susceptibility and Tensile Stress Ratio, T 238, CT 371 .............$ 1,000 Triaxial Shear, C.U., w/o pore pressure, D 4767, T 2297 per pt ........................ $ 350 Slurry Wet Track Abrasion, D 3910 ............................................................. $ 150 Triaxial Shear, U.U., D 2850 ..................................................................... $ 250 Superpave, Asphalt Mix Verification (incl. Aggregate Quality) ..................$ 4,900 Unconfined Compression, D 2166, T 208 ................................................ $ 180 Superpave, Gyratory Unit Wt., T 312 .......................................................... $ 100 Superpave, Hamburg Wheel, 20,000 passes, T 324.................................$ 1,000 MASONRY Unit Weight sample or core, D 2726, CT 308 ............................................. $ 100 Brick Absorption, 24-hour submersion, 5-hr boiling, 7-day, C 67 ........... $ 70 Voids in Mineral Aggregate, (VMA) CT LP-2 .............................................. $ 90 Brick Compression Test, C 67 .................................................................. $ 55 Voids filled with Asphalt, (VFA) CT LP-3.....................................................$ 90 Brick Efflorescence, C 67 .......................................................................... $ 55 Wax Density, D 1188 ................................................................................... $ 140 Brick Modulus of Rupture, C 67 ................................................................ $ 50 Brick Moisture as received, C 67 .............................................................. $ 45 AGGREGATES Brick Saturation Coefficient, C 67............................................................. $ 60 Clay Lumps and Friable Particles, C 142....................................................$ 180 Concrete Block Compression Test, 8x8x16, C 140 ................................. $ 70 Cleanness Value, CT 227 ............................................................................ $ 180 Concrete Block Conformance Package, C 90 ......................................... $ 500 Crushed Particles, CT 205...........................................................................$ 175 Concrete Block Linear Shrinkage, C 426 ................................................. $ 200 Durability, Coarse or Fine, CT 229 .............................................................. $ 205 Concrete Block Unit Weight and Absorption, C 140................................ $ 70 Fine Aggregate Angularity, ASTM C 1252, T 304, CT 234 .......................$ 180 Cores, Compression or Shear Bond, CA Code ....................................... $ 70 Flat and Elongated Particle, D 4791 ............................................................ $ 220 Masonry Grout, 3x3x6 prism compression, C 39 .................................... $ 45 Lightweight Particles, C 123.........................................................................$ 180 Masonry Mortar, 2x2 cube compression, C 109 ...................................... $ 35 Los Angeles Abrasion, C 131 or C 535 ....................................................... $ 200 Masonry Prism, half size, compression, C 1019...................................... $ 120 Material Finer than No. 200 Sieve by Washing, C 117..............................$ 90 Masonry Prism, Full size, compression, C 1019...................................... $ 200 Organic Impurities, C 40 ............................................................................... $ 90 Potential Alkali Reactivity, Mortar Bar Method, Coarse, C 1260...............$ 1,250 REINFORCING AND STRUCTURAL STEEL Potential Alkali Reactivity, Mortar Bar Method, Fine, C 1260 .................... $ 950 Chemical Analysis, A 36, A 615 ................................................................ $ 135 Potential Reactivity of Aggregate (Chemical Method), C 289 ................... $ 475 Fireproofing Density Test, UBC 7-6.......................................................... $ 90 Sand Equivalent, T 176, CT 217..................................................................$ 125 Hardness Test, Rockwell, A 370 ............................................................... $ 80 Sieve Analysis, Coarse Aggregate, T 27, C 136 ........................................ $ 120 High Strength Bolt, Nut & Washer Conformance, Sieve Analysis, Fine Aggregate (including wash), T 27, C 136.................$ 145 per assembly, A 325 ............................................................................. $ 150 Sodium Sulfate Soundness, C 88 ................................................................ $ 450 Mechanically Spliced Reinforcing Tensile Test, ACI............................... $ 175 Specific Gravity and Absorption, Coarse, C 127, CT 206..........................$ 115 Pre-Stress Strand (7 wire), A 416 ............................................................. $ 170 Specific Gravity and Absorption, Fine, C 128, CT 207............................... $ 175 Reinforcing Tensile or Bend up to No. 11, A 615 & A 706..................... $ 75 Structural Steel Tensile Test: Up to 200,000 lbs., A 370......................... $ 90 ROOFING Welded Reinforcing Tensile Test: Up to No. 11 bars, ACI ...................... $ 80 Roofing Tile Absorption, (set of 5), C 67 ..................................................... $ 250 Roofing Tile Strength Test, (set of 5), C 67.................................................$ 250

Special preparation of standard test specimens will be charged at the technician’s hourly rate.

Ninyo & Moore is accredited to perform the AASHTO equivalent of many ASTM test procedures.

ITEM NO. 14.

PREPARED BY: Clinton Tada
Support Services Captain
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: 06/04/2024
DATE: May 28, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute an Amendment to the Software Support Agreement with Sun Ridge Systems to Incorporate Crossroads Collision and E-Citation Add-On Modules for the Remaining Term of the Original Agreement with the Total Agreement Not to Exceed $260,000.

RECOMMENDATION:

Authorize the Town Manager to execute an amendment to the software support agreement with Sun Ridge Systems to incorporate Crossroads Collision and E-Citation add-on modules for the remaining term of the original agreement with the total agreement not to exceed $260,000.

BACKGROUND:

In 2021, the Police Department entered into a five-year agreement with Sun Ridge Systems, Inc. for a Computer Aided Dispatch and Records Management System. Computer Aided Dispatch (CAD) and Records Management Systems (RMS) are considered critical infrastructure to any law enforcement agency. This CAD/RMS structure serves as the core systems by which staff documents calls for service and self-initiated activity; write police reports; process and prepare police reports for prosecution; maintain warrants; manage investigations; track chain of custody for evidence; and manage resources during emergency and non-emergency responses.

In 2023, the Police Department was awarded a grant from the California Office of Traffic Safety (OTS) in the amount of $76,000 for the purchase of traffic collision reporting software and an electronic traffic citation system. The Department utilized grant funding to purchase Crossroads Collision and Crossroads E-Citation software systems, which enables the integration of collision data analysis and citation cross-reporting with the existing CAD/RMS system, Sun Ridge Systems. To successfully integrate collision reporting, statistical data, and electronic

ITEM NO. 15.

PAGE 2 OF 3
SUBJECT: Amendment to the Computer-Aided Records Management System Agreement with Sun Ridge Systems
DATE: May 28, 2024
BACKGROUND (continued):
citations with the existing CAD/RMS system, the Department will need to modify the existing add-on interface modules with Sun Ridge Systems.

DISCUSSION:

The Department entered into a five-year agreement with Sun Ridge Systems in FY 2021/22, for a total agreement amount of $254,780 (Attachment 1). The requested amendment to the existing Sun Ridge Systems agreement consists of a one-time set up fee total in the amount of $4,570 to add Crossroads Accident and E-Citation integration modules to the current CAD/RMS interface system (Attachment 2). In addition, for the remaining term of the agreement, the Department will switch Sun Ridge RIMS Auto-Cite module to Crossroads E-Citation, and Sun Ridge RIMS CHP 555 to SWITRS to Crossroads Collision Software. Below is a cost breakdown which outlines the remaining Fiscal Year (FY) costs for the term of this agreement with the onetime set up costs (in FY 24/25) and proposed annual subscription modifications.

FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
Original
Agreement
$46,635 $49,017 $50,977 $53,015 $55,136
Amended
Agreement $46,635 $49,017 $50,977 $57,585 $54,687
Agreement
Adjustments N/A N/A N/A +$4,570 (-$449)
CONCLUSION:

Staff recommends that the Town Council authorize the Town Manager to execute an amendment to the agreement with Sun Ridge Systems, Inc. for the addition of applicable software support service modules for the remainder term of this agreement, not to exceed a five-year total agreement amount of $260,000.

FISCAL IMPACT:

The annual cost of $53,015 for FY 2024/25 is already budgeted in the proposed Police Department Operating Budget. The one-time additional set up and service costs to integrate Crossroads Collision and E-Citation modules during FY 2024/25 ($4,570) will be paid using OTS grant funding as outlined in the grant proposal. The cost adjustment of future fiscal years will

ITEM NO. 15.

PAGE 3 OF 3
SUBJECT: Amendment to the Computer-Aided Records Management System Agreement with Sun Ridge Systems
DATE: May 28, 2024
FISCAL IMPACT (continued):
be proposed during budget development cycles for a total agreement amount (FY 2021/22 through FY 2025/26) not to exceed $260,000.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Original Agreement – Sun Ridge Systems

2. Sun Ridge Systems Quote – Add-on Modules

3. Amendment to the Original Agreement

ITEM NO. 15.

Sun Ridge Systems Software Support Services Agreement
This is a description of the software support, maintenance, and enhancement services to be provided by Sun Ridge Systems, Inc. (“SRS”) to the City of Los Gatos (“Licensee”) as part of a Software Support Services Agreement (“Agreement”). This Agreement covers all RIMS public safety software (Software) licensed by the Licensee and is effective on September 2, 2021.

Under this agreement SRS agrees to provide the following services and products to Licensee:

1. Coverage Hours. SRS will provide a toll-free phone number for Licensee to call whenever a covered problem occurs. Normal service hours will be Monday-Friday, 8AM-5PM PST, except for common federal holidays (“Holidays”). However, for instances with the Licensee’s system is completely inoperable due to an SRS software problem (“Critical Problems”) preventing basic system operation, service will be available 24 hours, 7 days a week, Holidays included.

2. SRS Response to reported problems. SRS agrees to provide service and assistance as expeditiously as possible as follows:
a. Most problems will be resolved with the initial phone call. b. For problems that cannot be immediately resolved, SRS will work to resolve the problem based on the severity of the problem and the urgency reported by Licensee. ● For Critical Problems, SRS personnel will work with Licensee until the situation is resolved.
● For problems that are not Critical Problems that have a lesser though continuing impact on operations of Licensee (“non-critical problems”), SRS will endeavor to provide a solution or work around within 72 hours of the problem being reported to SRS by the Licensee.
● For problems that are not Critical Problems and are not non-critical problems (“Minor Problems”) SRS may, at its discretion, either issue a near term "fix release" of the product or include the fix in the next scheduled product update.

3. Licensee equipment and software responsibilities. Licensee agrees to allow SRS to remotely connect to Licensee’s system when a problem is reported. SRS uses BeyondTrust Remote Access Software for this purpose. BeyondTrust software provides superior security and does so over an ordinary internet connection via an SRS server that hosts a BeyondTrust security hardware appliance.

With Licensee’s permission, SRS will use this connection to examine data files related to reported problems and to provide updates and corrections when necessary.

Attachment 1

ITEM NO. 15.

4. Provision of software updates. SRS will provide, at no additional cost, all new enhanced and updated versions of software licensed to Licensee. This software will be provided with detailed installation instructions for installation by Licensee. If desired, Licensee may retain SRS to perform any installation at additional cost to be determined on a per case basis. Updates are distributed via download from the SRS ftp web site. SRS will not be obligated to provide service for release versions that are more than two annual release versions older than the current release.

5. Cost. The cost of the services and software to be provided under this Agreement are as follows:

FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
RIMS Annual Support and Updates – Computer Aided Dispatch $11,375 $11,830 $12,303 $12,795 $13,307 RIMS Annual Support and Updates – Records Management $11,375 $11,830 $12,303 $12,795 $13,307 RIMS Annual Support and Updates – Mobile Software $5,600 $5,824 $6,057 $6,299 $6,551 RIMS Annual Support and Updates – E-911 $1,445 $1,503 $1,563 $1,626 $1,691 RIMS Annual Support and Updates – State Link (CLETS) $1,445 $1,503 $1,563 $1,626 $1,691 RIMS Annual Support and Updates – In-Station (CAD) Mapping $3,756 $3,906 $4,062 $4,224 $4,393 RIMS Annual Support and Updates – Mobile Mapping $1,796 $1,868 $1,943 $2,021 $2,102 RIMS Annual Support and Updates – Property Room $1,860 $1,934 $2,011 $2,091 $2,175 RIMS Annual Support and Updates – Citizen RIMS $1,686 $1,753 $1,823 $1,896 $1,972 RIMS Annual Support and Updates – iRIMS Law $2,062 $2,144 $2,230 $2,319 $2,412 RIMS Annual Support and Updates – Training Management (TIMS) $760 $790 $822 $855 $889 RIMS Annual Support and Updates – Text/Paging $670 $697 $725 $754 $784 RIMS Annual Support and Updates – AutoCite Link $378 $393 $409 $425 $442 RIMS Annual Support and Updates – CopLogic Link $460 $478 $497 $517 $538 RIMS Annual Support and Updates – CopLink Link $750 $780 $811 $843 $877 RIMS Annual Support and Updates – Evidence.com / Axon Link $550 $572 $595 $619 $644 RIMS Annual Support and Updates – LaserFiche Link $415 $432 $449 $467 $486 RIMS Annual Support and Updates – CHP 555 Export to SWITRS **$252 $780 $811 $843 $877 TOTAL $46,635 $49,017 $50,977 $53,015 $55,136
* This support quote above is only for the listed modules only, if additional software or interfaces are added or modified it may impact the support amount quoted.

ITEM NO. 15.

6. Late Payment. In addition to any other amounts for which Licensee is liable under this Agreement, Licensee agrees to pay to SRS a late charge equal to one percent (1%) of the amount due if Licensee fails to pay SRS any amount that is due and owing pursuant to this Agreement within sixty (60) days after Licensee’s receipt of an invoice from SRS or (60) days after the expiration of the previous Agreement, whichever comes later. In addition, any invoiced amounts that are due and owing under this Agreement that Licensee fails to pay to SRS within ninety (90) days after Licensee’s receipt of an invoice from SRS shall thereafter bear interest at the rate of twelve percent (12%) per annum or the highest interest rate allowed by applicable law, whichever is less.

7. Term. The term of this Agreement shall be one year from the date stated in the initial paragraph and shall be automatically annually renewed for another year upon payment of the invoice. Payment for the year is due in advance the day the services begin. Non-payment of the support invoice within 60 days as described in Section 6 shall be cause for terminating or suspending the Agreement at the discretion of SRS. Any requested changes to the Agreement for a new term must be received by the end of the previous term. This includes any changes to the list of products covered.

8. Termination. Licensee may terminate this Agreement with or without cause upon ninety (90) days written notice to SRS. If terminated, Licensee is entitled to a prorated refund for the service days not consumed beginning on the last day of the month the written notice is received by SRS to the end of the remaining term of the Agreement.

9. Limitations. SRS agrees to provide support only for public safety application software provided by SRS. Other software used by Licensee (word processing, spreadsheet, etc.) is not included in this Agreement. PC and network operating system software and Microsoft SQL Server database system software is similarly not included, although SRS may assist Licensee in isolating problems to this software. Also specifically excluded is responsibility for administration, support, or maintenance of your server, computer network, operating systems, or database (Microsoft SQL Server).

Licensee may request that SRS provide support services outside the limitations of this Support Services Agreement. If SRS agrees to provide any requested additional support services, which SRS may do or decline to do in its sole discretion, such support services will be provided at SRS’s then-current hourly labor rate and on such other terms and conditions as SRS may require.

This Agreement does not include equipment maintenance or assistance in diagnosing hardware problems including but not limited to PCs, printers, network, scanners, and other computer peripheral devices with the exception that SRS will assist Licensee in determining whether a problem is RIMS application software in nature.

ITEM NO. 15.

Additionally, this Agreement does not include updates or reloading of the street file or regeneration of maps from updated data sources which may become available to the Licensee.

If desired, Licensee may retain SRS to perform updates of these files at additional cost to be determined on a per case basis.

All terms, conditions, and limitations set forth in the Sun Ridge Systems Software License Agreement are incorporated herein by this reference and shall be fully applicable to the products and services provided under this Agreement.

For: Sun Ridge Systems, Inc. For: Los Gatos Police Department Name: Tamera Melrose Name: ___________________________
Title: Client Services Manager Title: ___________________________ Date: October 20, 2021 Date: _____________________

ITEM NO. 15.

To:

From:

Subject:

Date:

Jose Reyes, Los Gatos Police Department
Tamera Melrose
Quotation for RIMS Software
April 17, 2024
The following is a quotation for RIMS technical services to set up Crossroads eCitation Link and for RIMS to Crossroads Accident Import link based on your recent request.

Crossroads Accident Import Link Software
Item Price
RIMS to CrossroadsImport Link Software $2,800
Installation Completed via Remote Access and Phone $900 Annual Support and Updates – First Year $420
TOTAL $4,120
Crossroads eCitation Link Software
Item Price
Technical Services for eCitation Setup and Testing $450 TOTAL $450
As discussed, if LGPD intends to submit 555 report data to the CHP SWITRS interface, it must be uploaded to SWITRS using the same system where the 555 reports were entered. If LGPD intends to use Crossroads for 555 accident reports, LGPD will need to obtain the appropriate link software from Crossroads for the SWITRS upload.

Once the RIMS to Crossroads Import link software has been installed, LGPD will no longer be able to use the RIMS CHP 555 Export to SWITRS link. Therefore, this software link will be removed from the FY 24/25 annual support and updates invoice.

This quotation is for RIMS software only and does not include any hardware or third-party software that may be required by Crossroads to support these interfaces. You are encouraged to contact your Crossroads vendor to determine any costs that may be associated with providing their portion of these interfaces.

If you plan to purchase via purchase order, Sun Ridge Systems may require you to make some minor modifications to the purchase order’s Standard Terms and Conditions. Specifically, sections related to Warranty and Indemnification may require modification. Examples of these modifications can be provided upon request.

Attachment 2

ITEM NO. 15.

This quotation is valid for 90 days and may change thereafter. If you have any questions, please call me on 800-474-2565. Thank you for your continued interest in RIMS.

By signing and accepting this quote, I agree that I have signature authority on behalf of my department and/or organization and this signature will be an electronic representation of my signature for all purposes when I use them on documents, including legally binding contracts – just the same as a wet ink signature on paper. _______________________________________________________ _________________________ Authorized by: Name and Title Date:

ITEM NO. 15.
1 of 1
Sun Ridge Systems Computer-Aided Dispatch and Records Management Software Systems

AMENDMENT TO AGREEMENT
This AMENDMENT TO AGREEMENT is dated for identification this ____ th day of June
2024 and amends that certain agreement for Sun Ridge Systems Inc. RIMS Computer-Aided Dispatch and Records Management Software dated November 16, 2021, made by and between the Town of Los Gatos, ("Town,") and Sun Ridge Systems (“Consultant”).

RECITALS
A. Town and Consultant entered into a Computer-Aided Dispatch and Records Management Software Agreement on November 16, 2021 (“Agreement”), a copy of which is attached hereto and incorporated by reference as Attachment 1 to this Amendment.

AMENDMENT

1. Town will amend RIMS link software application features within the existing agreement terms with the Consultant to include the addition of Crossroads Accident Import Link application and Crossroads Electronic Citation Link application. Consultant will deactivate subscription to RIMS Auto-Cite application and RIMS SWITRS Direct Link application. a. For Crossroads Accident Import Link application, Town will pay $4,120 for a onetime initial set-up and installation fee, and thereafter $420 annually for the remainder of the original agreement term.
b. For Crossroads Electronic Citation Link application, Town will pay $450 for a onetime initial set-up fee, and thereafter $450 to replace RIMS Auto-Cite application feature with Crossroads Electronic Citation for the remaining term of the original agreement.

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

Town of Los Gatos Approved as to Consent:

By: _______________________________ By: ______________________________ Laurel Prevetti, Town Manager Print Name, Title
Department Approval:
_______________________________________
Clinton Tada
Support Services Captain
Approved as to Form: Attest:

Attachment 3

ITEM NO. 15.
2 ______________________________ ______________________________ Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk

ITEM NO. 15.

PREPARED BY: Clinton Tada
Support Services Captain
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: 06/04/2024
DATE: May 30, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Transitional Agreement for Animal Services with Silicon Valley Animal Control Authority (SVACA) and Execute a Revised Joint Exercise of Powers Agreement for SVACA as a Participating Member Agency
RECOMMENDATION:

Authorize the Town Manager to execute a transitional agreement for animal services with Silicon Valley Animal Control Authority (SVACA) and execute a revised Joint Exercise of Powers Agreement for SVACA as a participating member agency.

BACKGROUND:

The Town of Los Gatos and City of San Jose Animal Care Services (SJACS) entered into a twentyyear agreement for animal control services for the Town, which is set to expire on June 30, 2024. As a part of long-term budget strategies and fiscal forecasts, staff was directed to explore opportunities for reducing costs and improving operational efficiencies for animal control services for Town residents. The Police Department and Town Manager’s Office completed an analysis of available contractual Animal Control Service agencies in the region which identified Silicon Valley Animal Control Authority (SVACA) as a competitive alternative provider for animal services.

On April 16, 2024, Town Council unanimously voted to authorize the Town Manager to bring forward a formal Joint Powers Authority (JPA) agreement with SVACA for animal services upon the approval of the existing JPA member agencies.

ITEM NO. 16.

PAGE 2 OF 3
SUBJECT: Authorize Town Manager to Execute a Transitional Agreement and a Revised Joint Powers Authority Agreement with Silicon Valley Animal Control Authority DATE: May 30, 2024
DISCUSSION:

On May 22, 2024, SVACA Joint Powers Authority Board approved a recommendation from the SVACA Executive Director for the consideration of adding the Town of Los Gatos as a participating member agency of the JPA for animal services. The SVACA staff report is contained in Attachment 3. By unanimous vote, the SVACA JPA approved Los Gatos as a new member agency of the JPA, approved the transitional agreement, and revised the JPA agreement as to form.

If authorized by Town Council, the Town of Los Gatos and SVACA transitional agreement (Attachment 1) would allow for the transition of animal services from San Jose Animal Care Services to SVACA beginning July 1, 2024, until the SVACA JPA agreement is fully executed and signed by all participating member agencies. Staff anticipates all member agencies to fully execute the SVACA JPA by November 2024, at which time the transitional agreement would terminate and the Town and SVACA would operate under the revised JPA agreement (Attachment 2). At that time, the Mayor would recommend a Council Member to the JPA Board.

The SVACA transitional services agreement (Attachment 1) will incorporate the transition of animal care, licensing, and field services for the Town of Los Gatos to SVACA. As a part of this transition, staff will coordinate efforts with SJACS and SVACA to ensure database integration, community outreach, and operational service capabilities are in place prior to the anticipated transition date of July 1, 2024.

As a part of the revised SVACA JPA agreement for all participating member agencies, the Town of Los Gatos would be required to make an initial contribution of $100,000 to offset the addition of a new animal rescue vehicle shared by all participating member agencies. In addition, beginning FY24/25, the Town would be responsible for annual capital and operating costs in the amount of $239,471 (annual), proportionately 11% of the total cost-sharing by all participating member agencies. Member agencies can withdraw at any time after an initial five-year term. If a member agency withdraws within the first five years, that member agency will pay liquidated damages.

CONCLUSION:

Authorize the Town Manager to execute an agreement for animal services with Silicon Valley Animal Control Authority (SVACA) and execute a revised Joint Exercise of Powers Agreement for SVACA as a participating member agency.

FISCAL IMPACT:

If approved, the Town will initiate the first quarterly payment ($59,867.75) for FY 2024/25 for SVACA annual operating costs (Annual Total $239,471) under the transitional agreement terms.

ITEM NO. 16.

PAGE 3 OF 3
SUBJECT: Authorize Town Manager to Execute a Transitional Agreement and a Revised Joint Powers Authority Agreement with Silicon Valley Animal Control Authority DATE: May 30, 2024
FISCAL IMPACT (continued):

In addition, a one-time new member contribution cost of $100,000 will be paid in FY 2024/25 upon full execution of the signed JPA agreement. Staff will request a budgetary adjustment as needed at the full execution of the signed JPA agreement.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. SVACA and Town of Los Gatos Animal Services Transitional Agreement

2. SVACA Revised JPA Animal Services Agreement

3. SVACA JPA Staff Report Agenda Item #7

ITEM NO. 16.

ATTACHMENT 1

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ITEM NO. 16.

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ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 1 of 22 Approved by the SVACA Board of Directors on May 22, 2024

REVISED THIRD RESTATED AND AMENDED

JOINT EXERCISE OF POWERS AGREEMENT FOR

THE SILICON VALLEY ANIMAL CONTROL AUTHORITY
THIS AGREEMENT is made and entered into as of the Effective Date (set forth in Section 2.3) by and among the Member Agencies (defined in Section 1.12 below) signatory hereto, each of which is a public entity duly organized and existing under the Constitution and other laws of the State of California.

WHEREAS, on March 22, 2012, the original member agencies consisting of the Cities of Santa Clara, Campbell, and Monte Sereno approved a Revised Second Restated and Amended Joint Exercise of Powers Agreement for the Silicon Valley Animal Control Authority (“Second Restated Agreement”) to add the City of Mountain View as a Member Agency; and
WHEREAS, the Member Agencies now desire to amend the Second Restated Agreement to add the Town of Los Gatos as a Member Agency;
WHEREAS, Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (commencing at Section 6500) authorizes the Member Agencies to enter into an agreement for the joint exercise of any power common to them and, by that agreement, create an entity that is separate from each of the Member Agencies; and
WHEREAS, each of the Member Agencies possess the power to provide for the Animal Control Services (defined in Section 1.3), including animal field services, animal shelter services, and dead animal services within their respective Jurisdictional Area (defined in Section 1.4 herein below); and WHEREAS, the Member Agencies possess the authority to issue bonds, expend bond proceeds, and borrow and loan money for certain public purposes pursuant to the Government Code of the State of California; and
WHEREAS, this Agreement is an appropriate means through which the Member Agencies may provide the Animal Control Services because the Jurisdictional Areas of the Member Agencies are in close proximity to one another and are susceptible of being served by the Animal Control Services and related Joint Facilities (defined in Section 1.10) under common administration and management and with the same equipment, resources and personnel; and
WHEREAS, the Member Agencies desire to share their animal control expertise and to optimize their expenditures in connection with the provision of the Animal Control Services and related Joint Facilities; and
WHEREAS, the separate provision, management and administration of the Animal Control Services and related Joint Facilities in each Jurisdictional Area by each of the respective Member Agencies and using separate facilities, resources and personnel may result in duplication of effort, inefficiencies in administration and excessive costs, all of which, in the judgment of the Member Agencies, can be eliminated or substantially reduced, all to the substantial advantage and benefit of the citizens and taxpayers of all of the Member Agencies, if the provision of the Animal Control Services and the administration and management of the related Joint Facilities employing common equipment, resources ATTACHMENT 2

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 2 of 22 Approved by the SVACA Board of Directors on May 22, 2024 and personnel, were to be performed by and through a single public entity and the creation of such a single public entity is the purpose of this Agreement;
NOW, THEREFORE, for and in consideration of the facts stated above, the mutual advantages to be derived, and the mutual covenants contained herein, it is agreed by and among the Member Agencies hereto as follows:

ARTICLE I

DEFINITIONS
Section 1. Unless the context otherwise requires, the words and terms defined in this Article shall have the meanings specified.

Section 1.1. Act. "Act" means Article 1, Article 2, Article 3, and Article 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the California Government Code, as it may be amended from time to time.

Section 1.2. Agreement. "Agreement" means this joint exercise of powers agreement as it now exists or as it may from time to time be amended, supplemented or as it may be modified by the addition of signatory parties or by any other supplemental agreement or amendment entered into pursuant to the provisions of this Agreement.

Section 1.3. Animal Control Services. "Animal Control Services" means those services enumerated on "Exhibit A," entitled "Animal Control Services," attached hereto and incorporated herein by this reference.

Section 1.4. Area. "Area" and "Jurisdictional Area" mean that area within the respective jurisdictions of the Member Agencies.

Section 1.5. Authority. "Authority" means the Silicon Valley Animal Control Authority created pursuant to this Agreement.

Section 1.6. Board of Directors. "Board of Directors" means the governing board of the Authority referred to in Section 1.5 and more particularly described in Section 2.5 herein below. "Director" means an individual member of the Board of Directors.

Section 1.7. Bond Law. "Bond Law" means Article 4 of Chapter 5 of Division 7 of Title 1 of the California Government Code, as the same may have been or may hereinafter be amended from time to time, or any other law hereafter legally available for use by the Authority in the authorization and issuance of bonds to finance needed public facilities. "Bonds" means any bonds issued pursuant to Bond Law.

Section 1.8. Executive Director. “Executive Director" means the employee of the Authority directly responsible to the Board of Directors and primarily responsible for the managerial oversight of the operations of the Authority as further described in Section 3.6.

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 3 of 22 Approved by the SVACA Board of Directors on May 22, 2024 Section 1.9. Fiscal Year. "Fiscal Year" means the period from July 1st to and including the following June 30th.

Section 1.10. Joint Facilities. "Joint Facilities" means the animal control facilities, equipment, resources, and property to be owned, leased, managed and operated by the Authority pursuant to Article V and Section 7.1, and, if and when acquired or constructed, any improvements and additions thereto.

Section 1.11. Legislative Bodies. "Legislative Bodies" means the city or town councils of the Member Agencies of the Authority. "Legislative Body" means any such individual city or town council.

Section 1.12. Member Agencies or Member Agency. "Member Agencies" means all of the public agencies signatory to this Agreement, which, as of the initial Effective Date of this Agreement, are the City of Campbell, the City of Monte Sereno, the City of Santa Clara, the City of Mountain View and the Town of Los Gatos. "Member Agency" means any such individual public entity. “Originating Member Agency” refers to City of Campbell, the City of Monte Sereno, and the City of Santa Clara. “New Member Agency(ies)” refers to the City of Mountain View and the Town of Los Gatos.

Section 1.13. Quorum. Except as may otherwise be required hereunder or by law, "quorum" means the presence of the Santa Clara Director and three Directors of the other Member Agencies.

Section 1.14. Rules of the Board. “Rules of the Board” means the bylaws, rules, regulations and other operational and organizational directives of the Board of Directors for the conduct of its meetings and other affairs as further described in Section 2.9.

Section 1.15. Secretary. "Secretary" means the Secretary of the Board of Directors as further described in Section 3.2.

Section 1.16. Treasurer. " Treasurer" means the financial director and finance manager of the Authority having the responsibility and accountability for the Authority's funds as further described in Section 3.3.

ARTICLE II

GENERAL PROVISIONS
Section 2.1. Purpose. Subject to the terms herein, particularly Section 6.3, the purpose of this Agreement is to create the Authority to provide for the joint exercise of powers by the Member Agencies to own, manage, operate and/or maintain the Joint Facilities and to implement the financing, acquisition and construction of additions and improvements thereto and any additional facilities and property later acquired, owned or managed by the Authority and included in the Joint Facilities and thereafter to manage, operate and maintain the Joint Facilities, as so added to and improved, all to the end that the residents of the Area are provided with a more efficient and economical provision of the Animal Control Services and related services consistent with the purposes of this Agreement, and, if necessary, to issue and repay revenue bonds of the Authority pursuant to the Bond Law. Each of the Member Agencies is authorized to exercise all powers (except the power to issue and repay revenue bonds of the Authority)

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 4 of 22 Approved by the SVACA Board of Directors on May 22, 2024 pursuant to its organic law and the Authority is authorized to issue and provide for the repayment of revenue bonds pursuant to the provisions of the Bond Law.

Section 2.2. Creation of Authority. Pursuant to the Act, there is hereby created a public entity to be known as the "Silicon Valley Animal Control Authority," to be called the "Authority" pursuant to Section

1.5. The Authority, which shall administer this Agreement, is a public entity separate and apart from the Member Agencies and each of them.

Section 2.3. Effective Date of Agreement. This Agreement shall become effective when signed and executed by all Member Agencies listed in Section 1.12 (the "Effective Date") and shall supercede any prior agreements executed.

Section 2.4. Term. This Agreement shall become effective on the Effective Date set forth in Section

2.3 and shall continue in effect until such time as all Bonds (if any) and the interest thereon issued by the Authority under the Bond Law or the Act shall have been paid in full or provision for such full payment shall have been made, and thereafter until such time as the Authority and the Member Agencies shall have paid all sums due and owing pursuant to this Agreement or pursuant to any contract executed pursuant to this Agreement, and thereafter until terminated pursuant to Article IX.

Section 2.5. Governing Board. The Authority shall be administered by a Board of Directors consisting of five (5) Directors, as follows: one (1) Director appointed by each of the Legislative Bodies of the cities of Campbell, Los Gatos, Monte Sereno, Mountain View, and Santa Clara.

Section 2.5.1. All voting power of the Authority shall reside with the Board of Directors.

Section 2.5.2. The Board of Directors shall be called the "Board of Directors of the Silicon Valley Animal Control Authority."
Section 2.5.3. Each Director shall be a member of the Legislative Body of the Member Agency that appointed that Director.

Section 2.5.4. Each Legislative Body shall appoint an alternate Director for that Member Agency. The alternate Director may act as the Director in the absence of the Director appointed by that Legislative Body. The alternate Director shall also be a member of the Legislative Body that appointed the alternate Director.

Section 2.5.5. All Directors and their alternates shall serve at the pleasure of the Member Agency that appointed them.

Section 2.5.6. All vacancies on the Board of Directors shall be filled by the respective Legislative Body within thirty (30) days of the effective date of the vacancy or as soon thereafter as the Legislative Body may legally act. Any Director or alternate Director shall cease to be a Director when such person ceases to hold office as a council member of the respective appointing Legislative Body.

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 5 of 22 Approved by the SVACA Board of Directors on May 22, 2024 Section 2.5.7. Each Director may receive reimbursement for the reasonable and necessary expenses incurred in the performance of their duties, as provided in the Rules of the Board.

Section 2.6. Meetings of the Board of Directors. All meetings of the Board of Directors shall be public meetings unless a specified closed session is held in accordance with the California Government Code.

Section 2.6.1. Regular Meetings. The Board of Directors shall provide for regular meetings at a date, time, and place fixed by the Rules of the Board.

Section 2.6.2. Special Meetings. Special meetings and emergency meetings of the Board of Directors may be called in accordance with State law.

Section 2.6.3. Call, Notice, and Conduct of Meetings. All meetings of the Board of Directors, including without limitation, regular, adjourned regular, and special meetings, shall be called, noticed, held, and conducted in accordance with the provisions of Section 54950, et seq., of the California Government Code, as may be amended from time to time.

Section 2.7. Required Votes; Approvals. For all actions, the Director from Santa Clara will have two (2) votes at each meeting and the Directors from Campbell, Los Gatos, Monte Sereno, and Mountain View shall each have one (1) vote. Five (5) affirmative votes of the Board of Directors shall be required for the Board of Directors to take any action provided a quorum is present as set forth in Section 1.13.

Section 2.8. Rules of the Board. The Board of Directors shall adopt and from time to time amend the Rules of the Board as are necessary or convenient in the determination of the Board of Directors to achieve or facilitate the purposes hereof.

Section 2.9. New Members. It is the intent of the Originating Member Agencies to provide, to the extent permitted by law, for the inclusion at a subsequent date of such additional public entities, organized and existing under the Constitution or laws of the State of California, as may desire to become parties to this Agreement and members of the Authority. The Board shall review all applications for participation in the Authority. Those entities seeking membership must be approved by five (5) affirmative votes of the Board of Directors. A new Member Agency shall be required to (a) contribute funds commensurate to the expenses incurred by the Authority to accommodate the new Member Agency’s inclusion in the Authority. Examples include, but are not limited to, improvements to the facility, additional personnel expenses, marketing expenses, contractual services, and/or vehicles; (b) pay its share of annual Operating Costs and other expenses pursuant to Section 6.3 and (c) contribute to the Capital Fund (see Section 5.4) as determined by the Board. It is the intent of the Originating Member Agencies that any new Member Agency shall proportionally contribute and share in the Authority’s operations, but shall not have any proportional ownership in fee of the Authority’s real property interests.

For entities joining the Authority at other than the beginning of the Authority’s fiscal year, cash contributions for Operating Costs and the Capital Fund shall be prorated for the remainder of the fiscal year.

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 6 of 22 Approved by the SVACA Board of Directors on May 22, 2024

ARTICLE III

ORGANIZATIONAL STRUCTURE

OFFICERS AND EMPLOYEES
Section 3.1. Chairperson and Vice-Chairperson. The Board of Directors shall elect a Chairperson and Vice-Chairperson from among its members. The Chairperson and Vice-Chairperson shall each serve a one year term. In the event of the disqualification or permanent inability of the Chairperson to serve as the Chairperson during their term, the Vice-Chairperson shall assume the duties of the Chairperson for the remainder of that term and the Board of Directors shall elect a new Vice-Chairperson for the remainder of that term.

Section 3.1.1. The Chairperson shall be authorized to sign all resolutions of the Board of Directors and all contracts on behalf of the Authority and shall perform such other duties as may be imposed by the Board of Directors, consistent with the terms and provisions of this Agreement and the Rules of the Board.

Section 3.1.2. The Vice-Chairperson shall be authorized to act as the Chairperson, exercise all of the powers of the Chairperson, and perform all of the duties of the Chairperson in the temporary absence of the Chairperson.

Section 3.1.3. The Board of Directors, as a part of its approval of any contract, may authorize the Executive Director to execute the contract on behalf of the Authority.

Section 3.2. Secretary. The Executive Director shall be the Secretary to the Board of Directors, perform such other duties as may be imposed upon the Secretary by the Board of Directors, and cause a copy of this Agreement to be filed with the California Secretary of State and the State of California pursuant to Section 6503.5 of the Act.

Section 3.3. Treasurer. The Board shall designate the Treasurer. The Treasurer shall be the depository and shall have custody of all of the accounts, funds and money of the Authority from whatever source.

The Treasurer shall have the duties and obligations set forth in Section 6505 and 6505.5 of the Act, and shall assure that there shall be strict accountability of all funds and reporting of all receipts and disbursements of the Authority.

Section 3.4. Officers in Charge of Property. Pursuant to Section 6505 of the California Government Code, the Treasurer shall have charge of, handle, and have access to all accounts, funds, and money of the Authority and all records of the Authority relating to such accounts, funds and money; and the Secretary shall have charge of, handle, and have access to all other records of the Authority, and the Executive Director shall have charge of, handle, and have access to all physical properties of the Authority.

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 7 of 22 Approved by the SVACA Board of Directors on May 22, 2024 Section 3.5. Bonding Persons Having Access to Property. From time to time, the Board of Directors may designate persons, such as the Treasurer or Executive Director, as the Authority officer(s) who shall have charge of, handle, or have access to any property of the Authority. The Board of Directors shall also fix the respective amounts of the official bonds of the Treasurer, Executive Director or such other designated persons pursuant to Section 6505.1 of the Act, which bonds shall be filed with the Secretary of the Authority. The actual cost of such bonds shall be a proper charge against the Authority.

Section 3.6. Management. The regular management of the operations and activities of the Authority shall be vested in the Executive Director. The Executive Director shall be appointed by the Board of Directors. Unless otherwise provided by the Rules of the Board or resolution of the Board of Directors, the Executive Director shall have the following powers:

Section 3.6.1. To provide for the planning, design, and construction of any additions or improvements to the Joint Facilities; leasing or remodeling of any existing facilities, or any new facilities to be operated by the Authority as authorized by the Board of Directors; Section 3.6.2. Except as otherwise provided in Section 3.6.8, to execute any contracts for capital costs, costs of special services, equipment, materials, supplies, maintenance, or repair that involve an expenditure by the Authority within the limits and in accordance with procedures to be established by the Authority in the manner provided for local agencies pursuant to Article 7, commencing with Section 54201 of Chapter 5 of Part 1 of Division 2 of Title 5 of the California Government Code;
Section 3.6.3. To appoint and employ all personnel of the Authority required for maintenance and operation of the Joint Facilities, and all other employees authorized by the Authority's budget and by the Board of Directors;
Section 3.6.4. To retain any consultants, including labor relations consultants or certified public accountants, as authorized in the Authority's budget and by the Board of Directors; Section 3.6.5. Subject to approval of the Board of Directors, to appoint and employ all personnel of the Authority or consultants required to be employed or retained in connection with the design of any additions or improvements of the Joint Facilities or construction of new facilities; Section 3.6.6. To expend funds of the Authority and enter into contracts, whenever required, or for the immediate preservation of the public peace, health, or safety, subject to the subsequent ratification of the Board of Directors;
Section 3.6.7. To dispose of any personal property of the Authority as may be provided in the Rules of the Board or otherwise authorized by the Board of Directors; Section 3.6.8. To approve and pay demands for payments by the Authority of Ten Thousand Dollars ($10,000.00), or less, which are authorized in the Authority's budget;

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 8 of 22 Approved by the SVACA Board of Directors on May 22, 2024 Section 3.6.9. To prepare and submit to the Board of Directors in time for revision and adoption by the Authority prior to June 1 of each year, the annual preliminary budget for the next succeeding Fiscal Year referred to in Section 6.1;
Section 3.6.10. Generally, to supervise the acquisition, construction, management, maintenance, and operation of the Joint Facilities and personnel of the Authority; Section 3.6.11. To perform such other duties as directed by the Board of Directors and report to the Board of Directors at such times and on such matters as the Board of Directors may direct.

Section 3.7. Legal Advisor. The legal advisor of and provider of legal advice and services to the Authority shall be designated by the Board of Directors.

Section 3.8. Other Services. The Board of Directors shall have the power to appoint and employ such other consultants and independent contractors as may be necessary for the purposes of and pursuant to this Agreement.

Section 3.9. Non-Liability of Agencies. None of the officers, agents, or employees directly employed by the Authority shall be deemed, solely by reason of their employment by the Authority, to be employed by any Member Agency or, by reason of their employment by the Authority, to be subject to any of the requirements of any Member Agency. All of the privileges and immunities from liability, exemption from laws, ordinances and rules, all pension, relief, disability, workers' compensation, and other benefits which apply to the activities of the officers, agents, or employees of Member Agencies when performing their respective functions shall apply to them to the same degree and extent while engaged in the performance of any of the functions and other duties under this Agreement. Except as expressly provided for in this Agreement, nothing contained in this Article III is intended to nor shall it restrict or limit the rights or abilities otherwise available to the Authority to enter into agreements or other arrangements with any Member Agency in accordance with the terms and conditions of this Agreement and the Rules of the Board regarding the use of employees of the Member Agency in the operations and activities of the Authority.

Section 3.10. Indemnity and Insurance. The Authority shall defend, indemnify and save harmless each Member Agency to this Agreement and its respective council members, officers and employees, from all claims, losses, damages, costs, injury and liability arising out of the Authority's performance of its powers, duties and responsibilities under this Agreement. The Authority shall obtain and keep in force policies of insurance with coverage and limits sufficient to protect the Authority and its Member Agencies from claims for damages arising from the activities of the Authority, its Board of Directors, officers and employees. It is the intent of this Section 3.10 that the policies of insurance described herein include coverage for automobile liability, comprehensive general liability, public officials errors and omissions, workers’ compensation, and excess liability and other perils as the Board of Directors shall, from time to time, direct and that the coverage limits of these policies be maintained at levels as the Board of Directors shall direct. Each Member Agency shall be named an "additional insured" on the liability coverages or shall receive equivalent treatment or status under the Authority’s insurance program.

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 9 of 22 Approved by the SVACA Board of Directors on May 22, 2024 Section 3.11. Agreement Not for Benefit of Third Parties. This Agreement shall not be construed as or deemed to be an agreement for the benefit of any third party or parties, and no third party or parties shall have any right of action hereunder for any cause whatsoever. Any services performed or expenditures made in connection with this Agreement by any Member Agency shall be deemed conclusively to be for the direct protection and benefit of the inhabitants and property in the respective Area of such Member Agency.

ARTICLE IV

POWERS OF THE AUTHORITY
Section 4.1. General Powers. The Authority shall exercise in the manner herein provided the powers common to each of the Member Agencies, as provided by the Constitution and laws of the State of California, and all incidental, implied, expressed, or necessary powers for the accomplishment of the purposes of this Agreement, subject to the restrictions set forth in Section 4.4. As provided in the Act, the Authority shall be a public entity separate from the Member Agencies. The Authority shall have the power to finance, acquire, construct, manage, maintain, and operate the Joint Facilities. The Authority shall have all of the powers provided in Article 2 and Article 4 of the Act, unless specifically prohibited or restricted by this Agreement.

Section 4.2. Specific Powers. The Authority is hereby authorized, in its own name, to do all acts necessary for the exercise of the foregoing powers, including but not limited to, any of the following:

Section 4.2.1. To make and enter into contracts;
Section 4.2.2. To employ agents or employees;
Section 4.2.3. To acquire, construct, manage, maintain, or operate any buildings, works or improvements;
Section 4.2.4. To acquire, hold, or dispose of property; Section 4.2.5. To sue and be sued in its own name;
Section 4.2.6. To incur debts, liabilities or obligations, subject to the provisions of this Agreement, provided that no debt, liability or obligation shall constitute a debt, liability or obligation upon any Member Agency;
Section 4.2.7. To apply for, accept, receive, and disburse grants, loans, and other aids from any agency for the United States of America or of the State of California; Section 4.2.8. To invest any money in the treasury pursuant to Section 6505.5 of the Act that is not required for the immediate necessities of the Authority, as the Authority determines is advisable, in the same manner and upon the same conditions as local agencies, pursuant to Section 53601 of the California Government Code;
Section 4.2.9. To carry out and enforce all the provisions of this Agreement.

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 10 of 22 Approved by the SVACA Board of Directors on May 22, 2024 Section 4.3. Bonds. The Authority shall have all of the powers provided in Article 4 of the Act, including the power to issue Bonds under the Bond Law.

Section 4.4. Restrictions on Exercise of Powers. The Authority shall exercise in the manner herein provided the powers common to all Member Agencies as appropriate to the accomplishment of the purposes of this Agreement. For purposes of Govt. Code § 6509, the powers of the Authority shall be exercised subject to the restrictions upon the manner of exercising such powers as are imposed upon the City of Campbell, a general law city.

Section 4.5. Obligations of Authority. The debts, liabilities, and obligations of the Authority shall not be the debts, liabilities, and obligations of any Member Agency.

ARTICLE V

METHODS OF PROCEDURE
Section 5.1. Reserved.

Section 5.2. Delegation of Powers. Each Member Agency hereby delegates to the Authority the power to purchase and the power and duty to maintain, operate, and manage any animal control equipment, resources, and real property acquired and identified by the Member Agencies, including the site of the Authority's animal control facility, and to employ the necessary personnel to do any and all other things necessary or desirable to provide efficient, economical and lawful Animal Control Services to the Member Agencies.

Section 5.3. Joint Maintenance and Operation Fund. The Board of Directors shall have a joint maintenance and operation fund (herein called the "Operating Fund"). The Authority shall assume responsibility for the maintenance and operation of the Operating Fund and shall pay the administrative and operational expenses of the Authority and all maintenance and operation costs of the Joint Facilities from said Operating Fund. Each of the Member Agencies shall pay into said Operating Fund its proportionate share of the maintenance and operation costs of the Joint Facilities, computed on the basis set forth in Section 6.3 of this Agreement.

Section 5.4. Capital Acquisition, Improvement and Replacement Fund. The Board of Directors may create a capital acquisition and replacement fund ("Capital Fund") for the purpose of creating a fund for the acquisition and construction of the Joint Facilities and any other capital improvements owned or controlled by the Authority, and the replacement and acquisition of capital equipment and property of the Authority. Each Originating Member Agency shall annually pay into said Capital Fund its proportionate share of capital costs, including principal and interest payments on outstanding Bonds, if any, as provided in Section 6.3. If there is a future need for contributions to the Capital Fund by any new Member Agency, all members shall contribute a proportionate share that is commensurate with each member’s proportional operating expenses.

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 11 of 22 Approved by the SVACA Board of Directors on May 22, 2024

ARTICLE VI

BUDGET/COSTS, MAINTENANCE AND

OPERATION COSTS AND OTHER COSTS
Section 6.1. Annual Budget. The Board of Directors shall adopt a preliminary budget for maintenance and operation costs, capital costs, costs of special services, and debt service payments or redemption expenses on Bonds (if any), annually prior to June 1 of each year and shall adopt a final budget prior to June 30 of each year.

Each Member Agency shall approve the contribution of its allocated proportional share of the total estimated annual costs and expenses in the budget, as set forth in Section 6.3, prior to final adoption of the budget by the Board of Directors on or before June 30 of each year.

Section 6.2. Records and Accounts. The Authority shall cause to be kept accurate and correct books of account, showing in detail the capital costs, costs ofspecial services and maintenance, operation costs of the Joint Facilities and the provision of the Animal Control Services, and all financial transactions of the Member Agencies relating to the Joint Facilities and the provision of the Animal Control Services, which books of account shall correctly show any receipts and also any costs, expenses, or charges paid or to be paid by each of the Member Agencies. Said books and records shall be open to inspection at all times during normal business hours by any representative of a Member Agency, or by any accountant or other person authorized by a Member Agency to inspect said books or records. The Controller/Treasurer shall, in accordance with Sections 6505 and 6505.6 of the Act, cause the books of account and other financial records of the Authority to be audited annually by an independent public accountant or certified public accountant.

Section 6.3. Allocation of Costs and Expenses: Generally.

Section 6.3.1. Annual Estimate. After adoption of the preliminary budget and prior to June 1 of each year, the Authority shall promptly furnish to each of the Member Agencies an estimate of the total annual maintenance and operation costs, capital costs, costs of special services, and debt service payments or redemption expenses on Bonds (if any).

Section 6.3.2. Operating Costs. The proportion of Operating Costs to be borne by each Member Agency shall be determined by the Executive Director each year prior to April 1, and the Executive Director shall submit these percentages to the Board of Directors for review, modification and/or approval on or before June 1 of each year. The Board of Directors may modify the manner in which each Member Agency's contribution to Operating Costs is determined or calculated by five (5) affirmative votes of the Board of Directors.

Section 6.3.3. Capital Acquisition Costs, Costs of Special Services, Bond Expenses. Costs of acquiring new equipment or constructing new facilities, costs of special services and Bonds interest and redemption expenses (if any) shall be borne by each Member Agency in the same proportion as Operating Costs determined, pursuant to Section 6.3.2, for the Fiscal Year in which the cost is incurred.

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 12 of 22 Approved by the SVACA Board of Directors on May 22, 2024 Section 6.3.4. Capital Costs. The proportion of capital replacement costs to be borne by each Member Agency annually shall be the same proportion as Operating Costs borne by that Member Agency for that Fiscal Year as determined pursuant to Section 6.3.2.

Section 6.3.5. Insurance Costs. The premiums for the insurance policies described in Section

3.10 shall be apportioned among the Member Agencies in the same manner as each Member Agency's yearly percentage of Operating Costs, as determined pursuant to Section 6.3.2 . In the event of any claim for damages which is not covered by insurance, or which exceeds the limits of any applicable policy of insurance, the Member Agencies agree to allocate among themselves the uninsured costs of defending such claim, and the uncovered costs of settlement or judgment, if any, in the same proportions as the percentage share of Operating Costs of each Member Agency as established pursuant to Section 6.3.2 at the time the claim is filed with the Authority.

Section 6.4. Payment of Costs. Beginning on the Effective Date of this Agreement, and quarterly in advance thereafter for each Fiscal Year, each Member Agency agrees to pay the Authority its allocated proportional share of the total estimated annual costs and expenses, as set forth in Section 6.3.

Section 6.5. Sources of Funds. Each Member Agency shall provide the funds required to be paid by it to the Authority under this Agreement from any source of funds legally available to such Member Agency for such purpose.

Section 6.6. Level of Services and Charges to Member Agencies. All Member Agenciesshall receive the same level of service for their contributions, regardless of the amount of their contribution. The levels of service are reflected in Exhibit A, and these services may be amended from time to time.

Section 6.6.1. Level of Service Adjustment Due to New Member Agency. No later than four (4) years after the effective date of this Agreement, the Authority will conduct an internal review of its level of service for any new Member Agency to determine if the initial estimate of the necessary level of service for that jurisdiction is appropriate. In the event a higher or lower level of service is warranted based upon such audit, the Member Agencies may adjust the Operating Costs accordingly, pursuant to Section 6.3.2.

Section 6.7. New Member Agency Contribution and Payment Terms. This Agreement was created to accommodate the inclusion of a new Member Agency, the Town of Los Gatos. Pursuant to Section 2.10, the Town of Los Gatos will contribute the following amounts pursuant to the terms stated herein as consideration for its Member Agency status. The Town of Los Gatos will pay a total of One Hundred Thousand Dollars ($100,000.00), payable to the Authority on the Effective Date of this Agreement. This contribution amount is based upon the purchase of one animal rescue vehicle for Authority staff use as well as miscellaneoustransitional costs. Los Gatos agrees that any new asset and/or equipment purchased with these funds are the property of the Authority, not of Los Gatos.

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 13 of 22 Approved by the SVACA Board of Directors on May 22, 2024 Section 6.7.1. Early Termination. Los Gatos also agrees that in the event its Legislative Body votes to terminate its status as a Member Agency prior to five (5) years from the Effective Date of this Agreement, then Los Gatos will be liable for early termination liquidated damages. The Member Agencies agree that, in the event Los Gatos terminates this Agreement prior to five (5) years from the Effective Date of this Agreement, the Authority and its remaining Member Agencies will suffer damages and will incur other costs and expenses of a nature and amount which is difficult or impractical to determine. The Member Agencies agree that by way of ascertaining and fixing the amount of damages, costs and expenses, and not by way of penalty, Los Gatos shall pay to the Authority liquidated damages of a sum equivalent to two-thirds (2/3) of its annual contribution for the remaining balance of that five (5) year period and any unpaid initial contribution amount, as described in Section 6.7. In the event that said liquidated damages are not paid, Los Gatos agrees that the Authority or any of its remaining Member Agencies may use all available legal remedies to obtain the amount of said unpaid damages. In the event of any litigation resulting from such a dispute as to liquidated damages, Los Gatos agrees to waive any affirmative defense as to the reasonableness and/or imposition of the liquidated damages.

ARTICLE VII

ENFORCEMENT
Section 7.1. Enforcement by Authority. The Authority is hereby authorized to take any or all legal or equitable actions, including but not limited to injunction and specific performance, necessary or permitted by law, to enforce this Agreement.

ARTICLE VIII

WITHDRAWAL OF A MEMBER AGENCY
Section 8.1. Agreement Continues. Notwithstanding the provisions of Section 9.1, each Member Agency agrees that the withdrawal of a Member Agency pursuant to this Article VIII is not intended to and will not terminate this Agreement or affect the ability of the Board of Directors or the remaining Member Agencies to carry out and fulfill the purposes of this Agreement.

Section 8.2. Withdrawal. A Member Agency may withdraw from the Authority and this Agreement by filing written notice thereof with the Authority. Withdrawal will take effect on July 1 of any year provided there is a least six months advance notice. The withdrawal of any Member Agency from the Authority shall in no way affect the rights and obligations of the remaining Member Agencies. A withdrawing Member Agency is still obligated for all payments due from it for the fiscal year of the withdrawal, and in the case of the Town of Los Gatos, it is also obligated for all payments specified in Section 6.7 in the event of early termination. Further, in the event of withdrawal of a Member Agency, the following terms and conditions will apply:

Section 8.2.1. Withdrawal shall not relieve the party of its proportionate share of any debts, liabilities or other contractual commitments incurred by the Authority prior to the effective date of the party’s withdrawal; and

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 14 of 22 Approved by the SVACA Board of Directors on May 22, 2024 Section 8.2.2. If Bonds have been issued and the withdrawing Member Agency benefits directly or indirectly from the Bonds issued and outstanding, the Member Agency shall not withdraw from the Authority until such time as all of those Bonds and the interest thereon shall first have been paid in full or provision for such full payment shall first have been contractually made with the Authority and approved by the Board of Directors; and Section 8.2.3. The obligations of the withdrawing Member Agency shall have been paid in full and provision for repayment of any other indebtedness which may exist shall be covered by an agreement made between the Authority and the Member Agency and approved by the Board of Directors.

Section 8.3. Non-Distribution of Assets Upon Withdrawal or Subsequent Dissolution. A withdrawing Member Agency will have no entitlement to any Assets or Cash Reserves (See Section 9.3 for definition of term) of the Authority nor any distribution or reimbursement of any kind from the Authority upon withdrawal or in the event of the Authority’s subsequent dissolution.

Section 8.4. Restrictions. Any withdrawal from participation in this Agreement is subject to the restrictions on withdrawal contained in Sections 8.2 and 8.3, above. In addition, each withdrawing Member Agency, upon its withdrawal, waives any right to seek a judicial apportionment of any interest it may have in the Authority, including any interest in any Assets or Cash Reserves of the Authority.

ARTICLE IX

TERMINATION OF THE AGREEMENT AND

DISSOLUTION OF THE AUTHORITY
Section 9.1. Termination. This Agreement shall terminate and the Authority shall be dissolved upon an agreement of all Member Agencies. Upon termination of this Agreement, any obligation of the Authority which continues following dissolution shall be borne by the Member Agencies based on the percentages determined pursuant to Section 9.3.

Section 9.2. Effective Date of Termination. Termination shall not under any circumstances become effective until June 30 next succeeding a minimum of twelve (12) months following the effective date of a written notice of termination to the Board of Directors approved by all Legislative Bodies of the current Member Agencies.

Section 9.3. Disposition of Assets. Upon dissolution of the Authority, each Originating Member Agency shall receive its proportionate share of the assets of the Authority as defined in this Section within a reasonable amount of time after dissolution, and each Originating Member Agency shall contribute its proportionate or otherwise defined share toward the discharge of any enforceable liabilities incurred by the Authority as the same appear on the books of the Authority. Upon the termination of this Agreement, any assets acquired by the Authority during the period of its existence and still on hand and all unencumbered cash reserves (collectively, "Assets and Cash Reserves") shall be distributed to the Originating Member Agencies in the following manner: The total amount of maintenance and operating costs paid by each Originating Member Agency into the Operating Fund during the entire existence of the Authority shall be added together and the percentage which each Agency's total bears to the whole shall be determined. The Assets and Cash Reserves shall be divided among the current Member Agencies

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 15 of 22 Approved by the SVACA Board of Directors on May 22, 2024 based on the above percentage, based on appraised value of the assets at the time of termination. In the event the Originating Member Agencies cannot agree on how the distribution of Assets and Cash Reserves pursuant to the distribution method set forth in this Section should be implemented, the City Managers of all of the Originating Member Agencies, or their respective designees, shall meet promptly to develop a method for distributing the Assets and Cash Reserves among the Originating Member Agencies. New Member Agencies shall receive only their proportional share of the cash reserves they contributed to during their membership, if any.

Section 9.4. The distribution of assets may be made in kind or assets may be sold and the proceeds thereof distributed to the Member Agencies at the time of dissolution after the discharge of all enforceable liabilities.

Section 9.5. Continued Existence of Authority. Upon dissolution, this Agreement and the Authority shall continue to exist as required or necessary for the limited purpose of distributing the Assets and Cash Reserves and winding up and closing out the business, accounts and affairs of the Authority.

ARTICLE X

MISCELLANEOUS
Section 10.1. Section Headings. All section headings in this Agreement are for convenience of reference only and are not to be construed as modifying or governing language in the section referred to or to define or limit the scope of any provision of this Agreement.

Section 10.2. Consent. Whenever in this Agreement any consent or approval is required, the same shall not be unreasonably withheld.

Section 10.3. Law Governing. This Agreement is made under the Constitution and laws of the State of California and is to be so construed.

Section 10.4. Amendments. This Agreement may be amended at any time, except as limited by Bond covenants, if any. All amendments to the Agreement must be in writing, and must be approved by the Legislative Bodies of the Member Agencies prior to becoming effective.

Section 10.5. Severability. In the event any provision of this Agreement is determined to be illegal or invalid for any reason, all other provisions and articles of this Agreement shall remain in full force and effect unless and until otherwise determined. The illegality of any provision of this Agreement shall in no way affect the legality and enforceability of any other provisions of this Agreement.

Section 10.6. Successors. This Agreement shall be binding upon and shall inure to the benefit of the successors of the respective Member Agencies. No Member Agency may assign any right or obligation hereunder without written consent of the other Member Agencies.

Section 10.7. Notice. Any notice required to be given or delivered by any provision of this Agreement shall be personally delivered or deposited in the U.S. mail, postage prepaid, addressed to the Authority and to the Member Agencies at their addresses as reflected in the records of the Authority, and shall be

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 16 of 22 Approved by the SVACA Board of Directors on May 22, 2024 deemed to have been received by the party to which the notice is addressed upon the earlier of receipt or 72 hours after mailing.

Section 10.8. Counterparts. This Agreement may be signed in counterparts, which together shall constitute one agreement. If this Agreement is signed in counterparts, no signatory hereto shall be bound until all Parties named below have duly executed, or caused to be duly executed, a counterpart of this Agreement.
[Signatures on next page.]

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 17 of 22 Approved by the SVACA Board of Directors on May 22, 2024

EXECUTION OF AGREEMENT
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and attested by their proper officers thereupon duly authorized and their official seals to be hereto affixed on the dates as shown herein.

MEMBER AGENCIES
APPROVED AS TO FORM: CITY OF CAMPBELL, a municipal corporation By: ___________________________ By: _________________________________ Its: ___________________________ Its: _________________________________ Date: ___________________________ Date: _________________________________ ATTEST:

By: ___________________________
Its: ___________________________
Date: ___________________________
APPROVED AS TO FORM: CITY OF MONTE SERENO, a municipal corporation By: ___________________________ By: _________________________________ Its: ___________________________ Its: _________________________________ Date: ___________________________ Date: _________________________________ ATTEST:

By: ___________________________
Its: ___________________________
Date: ___________________________
APPROVED AS TO FORM: CITY OF SANTA CLARA, a municipal corporation By: ___________________________ By: _________________________________ Its: ___________________________ Its: _________________________________ Date: ___________________________ Date: _________________________________ ATTEST:

By: ___________________________
Its: ___________________________
Date: ___________________________

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 18 of 22 Approved by the SVACA Board of Directors on May 22, 2024 APPROVED AS TO FORM: CITY OF MOUNTAIN VIEW, a municipal corporation By: ___________________________ By: _________________________________ Its: ___________________________ Its: _________________________________ Date: ___________________________ Date: _________________________________ ATTEST:

By: ___________________________
Its: ___________________________
Date: ___________________________
APPROVED AS TO FORM: TOWN OF LOS GATOS, a municipal corporation By: ___________________________ By: _________________________________ Its: ___________________________ Its: _________________________________ Date: ___________________________ Date: _________________________________ ATTEST:

By: ___________________________
Its: ___________________________
Date: ___________________________

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 19 of 22 Approved by the SVACA Board of Directors on May 22, 2024 EXHIBIT "A"

ANIMAL CONTROL SERVICES
The term "Animal Control Services" in the Agreement to which this Exhibit "A" is attached means all of the following services:

A. Field Services
Field services means all of the following services, including any vehicles, communications equipment, office supplies, field and administrative personnel, and any other personnel, supplies and equipment, reasonably required to perform the following services (the "Field Services"):
• Pick up of confined stray dogs, cats, and other small animals, including, rabbits, chickens, turkey, geese, and ducks, and excluding confined wildlife as defined in Section 711.2 of the California Fish and Game Code, such as opossums, raccoons, skunks, or squirrels • Pick up confined stray livestock, including horses, pigs, goats, sheep, and donkeys • Pick up of deceased animals, including wildlife, as described in more detail below under the description of Deceased Animal Services
• Pick up of injured stray dogs or cats and other small animals, without regard to weight, and injured wildlife weighing fifty pounds (50 lbs.) or less, that are located on public property or readily accessible on private property with the permission of the property owner or occupant or the property owner's or occupant's authorized agent
• Respond to emergency calls such as animals requiring rescue or animals attacking people • Investigating complaints of animal bites or attacks on humans, including the completion of a report interviewing the parties involved, quarantining animals which have bitten humans, preparing and transporting biting animals for rabies testing, and investigating alleged violations of a quarantine
• Response to calls for removal of venomous snakes in a private residence and on private property
• Investigating complaints of vicious dogs and provide administrative hearings • Investigating complaints of dangerous animals and provide administrative hearings • Responding to complaints of animals running at large
• Responding to complaints of domestic animals causing a nuisance, except domestic animals making noise, and provide follow-up patrol

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 20 of 22 Approved by the SVACA Board of Directors on May 22, 2024 • Respond to police assist calls on animal-related issues, which service may include taking control of an animal on the scene
• Investigate complaints regarding the lack of proper care, condition, or attention of domestic animals by their owners
• Investigate complaints regarding cruelty to animals
• Investigate complaints regarding exceeding the limit of the maximum number of animals • Investigate complaints regarding unsanitary conditions • Provide Community Outreach Humane Education programs to local schools as well as presenting programs to civic groups and organizations, Neighborhood Watch, homeowners groups and more
• Provide animal safety training for service workers (i.e. postal employees, meter readers) • Issue administrative and criminal citations as necessary • Participate in Santa Clara County Disaster Preparedness Team B. Shelter Services
Shelter Services means all of the following services, including shelter facilities, supplies, animal care specialists, supervisors and administrative personnel, and any other personnel, supplies and equipment reasonably required to perform the following services (the "Shelter Services"):
• Shelter of abandoned, impounded, lost or stray domestic animals brought to the shelter by a Member Agency, a resident residing in a Jurisdictional Area, or shelter personnel • Quarantine of biting animals
• Rabies testing of suspect animals
• Provision for surrender and reclaim of abandoned, lost or stray domestic animals during established business hours
• Provide adoption program to include offsite adoption events • Provide after hours receiving kennels for stray healthy animals • Save all healthy or treatable animals by return to owner, placement with a placement partner, or adoption

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 21 of 22 Approved by the SVACA Board of Directors on May 22, 2024 • Hold periodic adoption events at the animal care center • Euthanasia and disposal of unhealthy domestic animals that fail to meet the written health and temperament standards of the shelter
C. Medical Services
Medical Services means all of the following services, including office facilities, supplies, and professional and trained personnel necessary to perform the following services (the "Medical Services") by staff or through contracts:
• Provision of veterinarian services by staff or through contracts twenty-four (24) hours per day to treat and provide veterinarian care to stray dogs, cats, and other impounded animals that may be sick or injured
• Monitor quarantined biter animals
• Conduct vaccination clinics and have available, free of charge to the public, rabies control information.
• Operate public low cost spay/neuter clinic
D. Deceased Animal Services
Deceased Animal Services means all of the following services, including any vehicles, storage facilities, disposal mechanisms, field, and administrative personnel, and any other personnel, supplies, contracts and equipment required to perform the following services (the "Deceased Animal Services"):
• Pick up of deceased animals, including wildlife and except livestock, from streets and public property within Jurisdictional Areas, or from private property within Jurisdictional Areas with the permission of the property owner, occupant or a representative of the property owner or occupant
• Identification of and notification to the owner of the deceased animal, whenever possible • Disposal of the body of the deceased animal
E. Animal Licensing Services
Animal Licensing Services means all of the following services, including any vehicles, office facilities, supplies, equipment and personnel necessary to perform the following services (the "Animal Licensing Services"):

ITEM NO. 16.

Revised Third Restated and Amended Joint Exercise of Powers Agreement Page 22 of 22 Approved by the SVACA Board of Directors on May 22, 2024 • Computerized animal licensing including up to two delinquent notices on license renewals
• Animal Control Officer contact for delinquent licenses when necessary • Provide licenses at animal care center
• Comprehensive community outreach program, to include issuing licenses at vaccination and spay/neuter clinics
• Distribute licensing information through local veterinarians and on web site • Issue assistance animal identification tags to qualified residents as required by state law F. Other Services For Which a Fee May Be Charged
• Pick up owned animals
• Provide humane traps to the public to capture sick, injured, or nuisance domestic animals • Provide volunteer opportunities
• Provide onsite dog training

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ATTACHMENT 3

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 06/04/2024
DATE: May 30, 2024
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Consider a Recommendation of the Planning Commission to Adopt a Resolution Adopting the Draft Revised 2023-2031 Housing Element. An Environmental Analysis Based on the Previously Certified 2040 General Plan Final Environmental Impact Report has been Prepared for the Draft Revised 2023-2031 Housing Element. The Housing Element is Within the Scope of the Previously Approved 2040 General Plan, and the Program EIR for the General Plan Adequately Describes the Impacts of the Housing Element for Purposes of CEQA. Location: Townwide. Applicant: Town of Los Gatos. General Plan Amendment Application GP-24-001.

RECOMMENDATION:

Consider a recommendation of the Planning Commission to adopt a Resolution (Attachment 10) adopting the Draft Revised 2023-2031 Housing Element (May 2024).

EXECUTIVE SUMMARY:

The Town of Los Gatos has prepared an update to the Housing Element of the General Plan to affirmatively further fair housing and accommodate the 1,993-unit Regional Housing Needs Allocation (RHNA) for the 2023-2031 Housing Element cycle. The content of the Draft Revised 2023-2031 Housing Element is structured for further consistency with the requirements set forth in State law. In addition to responding to requirements of State law, the Housing Element also demonstrates the Town of Los Gatos’ strategy to meet the Town’s locally determined housing needs, and that these needs are addressed through policies and programs outlined within the Housing Element. Public review and input have been a critical component of this 6th cycle Housing Element update. The Draft Revised 2023-2031 Housing Element (May 2024) (Attachment 1) and Environmental Analysis (Attachment 2) are available on the Town’s Housing Element website at: www.losgatosca.gov/HousingElement.

ITEM NO. 17.

PAGE 2 OF 5
SUBJECT: REVISED 2023-2031 HOUSING ELEMENT (MAY 2024)/GP-24-001 DATE: May 30, 2024
BACKGROUND:

On March 5, 2024, Town Council voted to direct staff to submit the Draft Revised Housing Element to California Department of Housing and Community Development (HCD). Since that meeting the following progress has been made on the Housing Element update.

From March 7, 2024, to March 14, 2024, the Draft Revised Housing Element was made available to the public for the required seven-day review period.

On March 18, 2024, the Draft Housing Element (March 2024) was submitted to HCD for a 60-day review.

On April 26, 2024, the Town received a preliminary review matrix (Attachment 4) which demonstrated that the Town had resolved all of HCD’s findings/comments with the submittal of the March 2024 Draft Revised Housing Element, with the exception of a new request for clarification regarding the Caltrans site.

In addition to receiving the preliminary review matrix, on April 26, 2024, staff and the Town’s Housing consultant met with the Town’s HCD reviewer and Paul McDougall, HCD Senior Program Manager. During this meeting, HCD provided staff with specific minor technical modifications to add to Program AQ to reflect additional steps related to the development of the Caltrans site; and modified language to add to the description of the Caltrans site as described in Appendix D. On April 26, 2024, staff provided the minor technical modifications to HCD, as shown in track changes with a grey highlight in Attachment 5.

On April 30, 2024, staff and the Town’s Housing consultant received confirmation from the Town’s HCD reviewer that the minor technical modifications addressed HCD’s previous concern with the Caltrans site.

On May 3, 2024, the Town received a letter from HCD stating that the Town’s Draft Revised Housing Element (March 2024), as submitted to HCD on March 18, 2024, along with specific technical modifications directed by HCD and submitted on April 26, 2024, meet the statutory requirements of State Housing Law (Attachment 6).

The Draft Revised Housing Element (May 2024) with specific technical modifications as directed by HCD was made available to the public for a seven-day review from May 9, 2024, through May 15, 2024, as required by Assembly Bill 215. A track change copy and a clean copy of the document were made available for viewing online, and an email was sent to all individuals and organizations that previously requested notice relating to the Town’s Housing Element Update.

Written comments received during the seven-day public review are provided in Attachment 7.

ITEM NO. 17.

PAGE 3 OF 5
SUBJECT: REVISED 2023-2031 HOUSING ELEMENT (MAY 2024)/GP-24-001 DATE: May 30, 2024
BACKGROUND (continued):

On May 22, 2024, the Planning Commission met and made a unanimous recommendation to the Town Council to adopt the Draft Revised 2023-2031 Housing Element (May 2024) (Attachments 8 and 9). A link to the video of the meeting is available here: https://losgatosca.municodemeetings.com/.

DISCUSSION:

A. Purpose
The primary purpose of this agenda item is to consider a recommendation of the Planning Commission to adopt the Draft Revised 2023-2031 Housing Element (May 2024) and adopt the Draft Revised 2023-2031 Housing Element (May 2024) (Attachment 1) with the Environmental Analysis (Attachment 2). A draft resolution is provided in Attachment 10.

B. Next Steps
Once adopted by Town Council, the Housing Element will be submitted to HCD for certification. Following adoption and resubmittal, HCD has 60 days to certify the Housing Element.

PUBLIC COMMENT:

This meeting has been publicized in the newspaper, on the Town’s website, and through the Town’s social media platforms. As of the drafting of this report, no comments from the public have been received.

ENVIRONMENTAL ASSESSMENT:

An Environmental Analysis based on the previously certified 2040 General Plan Final Environmental Impact Report has been prepared for the Los Gatos 2023-2031 Housing Element and is available on the Town’s Housing Element website at:
www.losgatosca.gov/HousingElement. The Housing Element is within the scope of the previously approved 2040 General Plan, and the Program EIR for the General Plan adequately describes the impacts of the Housing Element for the purposes of CEQA (Attachment 2).

CONCLUSION:

Based on HCD’s direction, extensive public outreach, robust public participation and input, and diligent work by the Housing Element Advisory Board, the Planning Commission, the

ITEM NO. 17.

PAGE 4 OF 5
SUBJECT: REVISED 2023-2031 HOUSING ELEMENT (MAY 2024)/GP-24-001 DATE: May 30, 2024
CONCLUSION (continued):

Town Council, Town staff, the Town’s Housing consultant, and the Town’s Legal consultants, staff recommends that the Town Council:
 Receive and consider public comments;
 Review the Draft Revised Housing Element (May 2024) (Attachment 1) and the Environmental Analysis (Attachment 2); and
 Adopt a resolution (Attachment 10) to adopt the Draft 2023-2031 Housing Element (May 2024) (Attachment 1), including a finding that the environmental impacts of the Housing Element were adequately analyzed in the EIR for the 2040 General Plan.

ALTERNATIVES:

Alternatively, the Council may:

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

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

3. Not adopt the Draft Revised Housing Element (May 2024); or

4. Recommend adoption with modifications. *
*Note any modifications must to be posted for a seven-day public review period and may result in additional findings/comments upon resubmittal to HCD for the 60-day review.

COORDINATION:

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

ATTACHMENTS:

1. Draft Revised Housing Element (May 2024), Clean Copy

2. Environmental Analysis (available online at: www.losgatosca.gov/HousingElement)

3. Draft Revised Housing Element (May 2024), Track Changes (available online at:
www.losgatosca.gov/HousingElement)

4. HCD Preliminary Review Matrix, Received on April 26, 2024

5. Technical Modifications to Program AQ and Appendix D, Caltrans Site

6. May 3, 2024, HCD’s Findings Letter

7. Public Comments Received During the Seven-Day Public Review Period between Thursday, May 9, 2024, and Wednesday, May 15, 2024

8. May 22, 2024, Planning Commission Staff Report with Exhibits 1-8 (available online at:
https://losgatos-ca.municodemeetings.com/)

ITEM NO. 17.

PAGE 5 OF 5
SUBJECT: REVISED 2023-2031 HOUSING ELEMENT (MAY 2024)/GP-24-001 DATE: May 30, 2024
ATTACHMENTS (continued):

9. May 22, 2024, Planning Commission Verbatim Minutes

10. Draft Resolution for Adoption of the Draft Revised Housing Element (May 2024)

ITEM NO. 17.

Town of Los Gatos 6th Cycle
2023-2031 Housing Element Update
HCD Draft Revised
May 2024
ATTACHMENT 1

ITEM NO. 17.

This document was produced on recycled paper.

HCD DRAFT REVISED

TOWN OF LOS GATOS
6 TH CYCLE 2023-2031 HOUSING ELEMENT
MA Y 2024

PREPARED BY
Town of Los Gatos
Community Development Department
110 E. Main Street
Los Gatos, California95030
Tel 408.354.6872
Veronica Tam and Associates, Inc.
107 S. Fair Oaks Avenue, Suite 212
Pasadena, California
Tel 626.304.0440
EMC Planning Group Inc.
601 Abrego Street
Monterey, CA 93940
Tel 831.649.1799
Fax 831.649.8399
www.emcplanning.com
Root Policy Research
6740 East Colfax Avenue
Denver, Colorado 80220
Tel 970-880-1415
www.rootpolicy.com

ITEM NO. 17.

Table of Contents
May 2024 HCD Draft Revised 2023-2031 Housing Element i

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

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

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

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

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

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

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

10.1.6 Public Comment ............................................................................................ 10-17

10.2 Overview of Housing Needs and Constraints ............................................................ 10-18

10.2.1 Introduction .................................................................................................. 10-18

10.2.2 Los Gatos Overview. ...................................................................................... 10-18

10.2.3 Demographics .............................................................................................. 10-21

10.2.4 Household Characteristics ............................................................................. 10-24

10.2.5 Housing Stock Characteristics ........................................................................ 10-26

10.2.6 Special Housing Needs .................................................................................. 10-28

10.2.7 Governmental and Non-Governmental Constraints ........................................ 10-32

10.3 Site Inventory and Opportunities ............................................................................. 10-33

10.3.1 Introduction .................................................................................................. 10-33

10.3.2 Sites Summary. ............................................................................................. 10-33

10.3.3 Summary of Quantified Objectives……………………………………………………..…………10-34

10.4 Energy and Resource Conservation .......................................................................... 10-35

10.4.1 Opportunities for Energy Conservation .......................................................... 10-35

10.4.2 Energy-Related Goals and Policies. ................................................................ 10-36

10.5 Goals and Policies ................................................................................................... 10-36

10.6 Implementation Programs ....................................................................................... 10-41

10.7 Glossary and Acronyms ........................................................................................... 10-75 Appendices
Appendix A Affirmatively Furthering Fair Housing Reports Appendix B Housing Needs Assessment
Appendix C Governmental and Non-Governmental Constraints Appendix D Sites Inventory Analysis
Appendix E Review of Previous Housing Element
Appendix F List of Organizations Contacted
Appendix G AFFH Segregation Report Los Gatos
Appendix H Sites Inventory Form
Appendix I Public Comments

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-1 The 2023-2031 Housing Element is the Town of Los Gatos’ response to meet the housing needs of our community while meeting the State's housing goals as set forth in Article 10.6 of the California Government Code.

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

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

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

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

Repercussions for a jurisdiction which does not comply with the Housing Element Law include:

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-2 HCD Draft Revised 2023-2031 Housing Element May 2024  Limited access to State Funding.
 Vulnerability to litigation from housing rights’ organizations, developers, and the Department of Housing and Community Development (HCD), resulting in the following potential consequences:
a. The court may order the jurisdiction to bring its Housing Element into compliance within 120 days; b. Suspension of a jurisdiction’s authority to issue building permits or grant zoning changes, variances, or subdivision map approvals;
c. The court may step in and approve housing projects; and d. If a jurisdiction faces a court action stemming from its lack of compliance and either loses or settles the case, it often must pay substantial attorney fees to the plaintiff’s attorneys in addition to the fees paid to its own attorneys.

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

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

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

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

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-3 Determination (RHND), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need.

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

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

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

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

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

The requirement to AFFH is derived from The Fair Housing Act of 1968, which prohibited discrimination concerning the sale, rental, and financing of housing based on race, color, religion, national origin, or sex and was later amended to include familial status and disability. The 2015 U.S. Department of Housing and Urban Development (HUD) Rule to Affirmatively Further Fair Housing and California AB 686 (2018) both mandate that each jurisdiction takes meaningful action to address significant disparities in housing needs and access to opportunity. AB 686 requires that jurisdictions incorporate AFFH into their Housing Elements, which includes inclusive community participation, an assessment of fair housing, a site inventory reflective of AFFH, and the development of goals, policies, and programs to meaningfully address local fair housing issues.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-4 HCD Draft Revised 2023-2031 Housing Element May 2024 An AFFH analysis was prepared by Root Policy Research and is included as an appendix to this Housing Element (see Appendix A). An action matrix for programs and actions that aim to affirmatively further fair housing is included in Section 10.6, Implementation Programs, of this Housing Element.

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

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

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

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

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

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

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-5 Figure 10-1 HCD Fair Housing Inquiries (2013- 2021)
Source: California Department of Housing.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-6 HCD Draft Revised 2023-2031 Housing Element May 2024  According to the Theil H-Index,4 neighborhood racial segregation in Los Gatos increased between 2010 and 2020. Neighborhood income segregation stayed about the same between 2010 and 2015.  Above moderate-income residents are the most segregated compared to other income groups in Los Gatos. Above moderate-income residents live in neighborhoods where they are less likely to encounter residents of other income groups.
 Among all income groups, the above moderate-income population’s segregation measure has changed the most over time, becoming less segregated from other income groups between 2010 and 2015.  According to the dissimilarity index, segregation between lower income residents and residents who are not lower income has increased between 2010 and 2015. In 2015, the income segregation in Los Gatos between lower income residents and other residents was higher than the average value for Bay Area jurisdictions.

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-7 Figure 10-3 Fair Housing Assistance Organizations, Santa Clara County Source: Los-Gatos-Housing-Resources-Guide (losgatosca.gov) Regional Segregation
 Los Gatos has a higher percentage of White residents than other jurisdictions in the Bay Area as a whole, a lower percentage of Latinx residents, a lower percentage of Black residents, and a lower percentage of Asian and Pacific Islander residents.
 Regarding income groups, Los Gatos has a lower percentage of very low-income residents than other jurisdictions in the Bay Area as a whole, a lower percentage of low-income residents, a lower percentage of moderate-income residents, and a higher percentage of above moderate-income residents.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-8 HCD Draft Revised 2023-2031 Housing Element May 2024

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

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

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

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

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

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

Since the adoption the Town’s SB 9 Ordinance, the Town has received a total of four Two-Unit Housing Development applications and seven Urban Lot Split applications (between January 2022 and January 2023). The applications result in a total of 13 net new housing units a year. Based on the number of applications received during the first year of SB 9 the Town is utilizing an estimate of 12 net new housing units per year

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-9 and anticipating a total of 96 residential units to be developed under SB 9 during the eight-year planning period, as further described in Program AV.

Within the Town, 6,940 parcels in the single-family zones have parcel size over 5,000 square feet (a conservative estimate compared to the minimum State requirement of 2,500 square feet) eligible for lot split. To estimate the number of parcels with potential for urban lot split, these factors were considered to exclude:
 Existing lot coverage (more than 40 percent) – Estimated by dividing building area by the number of stories.
 Year Built (1940 or earlier) – The Town considers homes built prior to 1941 as historic homes.  Improvement to land value ratio (more than 1.0 and therefore improvements are worth more than the land) – Similar to age of structure, newer homes that are worth more than the land may be financially less conducive to lot splits.

Overall, 2,971 parcels meet these criteria. The projection of 12 units annually represents the potential participation of less than 0.5 percent of probable parcels and therefore a fairly conservative estimate.

Nevertheless, given these recent trends, the Town has not utilized these potential SB 9 units to meet its RHNA adequate sites requirement. These units help promote housing mobility in the Town, offering moderately priced housing in lower intensity neighborhoods (see Program AV).

Incentives for Accessory Dwelling Units
AB 68, AB 587, AB 671, AB 881, and SB 13 further incentivize the development of ADUs, through streamlined permits, reduced setback requirements, increased allowable square footage, reduced parking requirements, and reduced fees. The Town has amended its regulations and procedures pursuant to State law. In addition, the Town increased the allowable floor area ratio by an additional 10 percent for development of ADUs. See Appendix Q for additional information regarding the Town’s ADU program and incentives to increase ADU production and affordability.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-10 HCD Draft Revised 2023-2031 Housing Element May 2024 Low-Barrier Navigation Centers
A "Low Barrier Navigation Center" is a low-barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing. AB 101 requires jurisdictions to allow “low-barrier navigation centers” by-right in areas zoned for mixed-uses and in non-residential zones permitting multi-family uses if the center meets specified requirements. Implementation Program BC has been included pursuant to the requirements of AB 101.

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

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

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

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

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

10.1.5 Public Participation
The primary purpose of this section is to describe the effort made by the Town of Los Gatos to engage all economic segments of the community (including residents and/or their representatives) in the development and update of the Housing Element. The 6th Cycle RHNA numbers are a significant change for all California communities, and the success of the update process is dependent on a robust, inclusive, and meaningful community outreach and engagement program. The COVID-19 pandemic has complicated community outreach efforts, but the pandemic has also catalyzed the development of new digital tools that have brought interactive engagement to a new level. The following section outlines efforts taken by the Town of Los Gatos to engage the community in the Housing Element Update process. The summary below illustrates the efforts that the Town has employed to reach the community for input and community engagement as part of the 2023-2031 Housing Element Update process to date:

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-11  Postcards sent to all property owners and tenants in the Town for a Housing Element Update Community Meeting (17,446 in total).
 Announcements provided in the local newspaper for all Housing Element Advisory Board (HEAB) meetings, community meetings, joint study sessions, and the 30-day public review period of the Initial Public Review Draft Housing Element (Los Gatos Weekly).  19 pop-up informational tables at the Los Gatos Farmers’ Market.  Two Housing Element Update information tables at the Los Gatos Library.  Information table at the Town Community Event (Spring in the Green).  Social posts on five platforms, including Facebook, Instagram, Twitter, Nextdoor, and the What’s New page on the Town’s website for all Housing Element meetings, interactive on-line engagement, and public engagement opportunities.
 Public notices for Housing Element Advisory Board (HEAB) meetings and community meetings posted at Town Hall and the Library.
 Targeted email messaging that sends email updates to the Town’s Notify Me subscribers for the 2040 General Plan Update and Housing Element Update.
 100 Property Owner Interest Forms mailed to all property owners on the Site Inventory.  Online advertisements for each Housing Element meeting and interactive on-line engagement opportunities on the Town’s website, the Town’s General Plan Update website, and the Town’s Housing Element website.
 Use of the Balancing Act, a housing simulation tool, available on the Town’s dedicated Housing Element Update website for online public engagement.
 201 submissions to the online site surveys and 42 completions of the Balancing Act housing simulation tool.
 Seven community group meetings for the 2040 General Plan Update, including discussion regarding density and affordable housing.
 20 HEAB meetings held to date.
 Town Council meeting approving the draft Site Inventory.  One community meeting hosted by the Santa Clara County Planning Collaborative for Santa Clara County municipalities.
 A public meeting hosted by West Valley Community Services; Envisioning an Inclusive Los Gatos:

Housing Element 101.
 A joint study session with the Town Council and Planning Commission to discuss housing growth options for the 2040 General Plan.
 A joint study session with the Town Council, Planning Commission, and HEAB with panelists from both market rate and non-profit developers.
 Participation in a Santa Clara County Equity Advisory Group Meeting.  Two informational meetings with the Los Gatos Democracy Tent community organization.

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-12 HCD Draft Revised 2023-2031 Housing Element May 2024 Housing Element Website
The Town developed a focused Housing Element Update website “Engage Los Gatos Housing” to provide a forum for the Town’s online community to engage in the Housing Element Update process. The site provides an interactive place for the public to learn about and be a part of the Town’s work on housing and to help guide decision makers on the direction of future housing. This online platform has been open throughout the Town’s 6th Cycle Housing Element Update and updated regularly with key documents, key meeting dates and times, engagement opportunities, and other information.

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

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

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

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

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

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

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

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

Housing Element Advisory Board Public Meetings (HEAB)
The HEAB is an advisory board created for the purposes of advising Town staff, providing a public forum for public involvement, and making recommendations to the Planning Commission and Town Council on updates to

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-13 the Housing Element. The HEAB serves as an advisory body that provides input on specific tasks associated with the Housing Element Update. The role of the HEAB is to:
 Provide guidance on the development of the Housing Element Update;  Provide an additional forum for public involvement;
 Forward milestone products to Town Council;
 Review the Draft Housing Element; and
 Make recommendations to the Planning Commission and Town Council.

The HEAB meeting agendas allow for two opportunities for public comment, at the beginning and end of each meeting, to provide the public an opportunity to react to the topics proposed and discussed. The public is invited to participate and provide comments at the HEAB meetings or in writing. Meetings are advertised through social media, the Town’s website, the Housing Element Update website, newspaper advertisements, postings at Town Hall and the Library, and emails to the General Plan Notify Me list. The following meetings were held via Zoom with public participation and will continue through the Housing Element Update process.  October 21, 2021: Kickoff Meeting and Housing Element Overview.  December 16, 2021: Review and Discussion of Technical Appendices.  February 17, 2022: Review and Discussion of the Housing Site Inventory Analysis Process.  April 21, 2022: Review and Discussion of the Housing Element Site Inventory.  May 5, 2022: Review and Discussion of the Housing Element Site Inventory.  May 19, 2022: Review and Discussion of the Housing Element Site Inventory.  June 16, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.  July 7, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.  August 4, 2022: Review and Discussion of the Housing Element Draft Goals, Policies, and Programs.  August 18, 2022: Review and Discussion of the full preliminary Housing Element Draft.  September 15, 2022: Receive Public Comments on the Initial Public Review Draft Housing Element.  October 20, 2022: Review of the Submittal of the HCD Draft Initial Review Housing Element.  December 1, 2022: Discuss Anticipated Comments on the Town’s Draft Housing Element.  February 16, 2023: Review of HCD comments and discuss possible modifications to the Housing Element.  March 16, 2023: Review and Discuss the Town’s Revised Draft Housing Element.  June 15, 2023: Review of HCD comments and discuss possible modifications to the Housing Element.  July 20, 2023: Review draft modifications to the Town’s Draft Revised Housing Element.  August 24, 2023: Review draft modifications to the Town's Draft Revised Housing Element.  September 28, 2023: Review of the Town’s Draft Revised Housing Element.  January 18, 2024: Review of Town’s Draft Revised Housing Element and discussion of HCD’s December 1, 2023, comment letter.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-14 HCD Draft Revised 2023-2031 Housing Element May 2024  The Town’s Senior Services Committee.

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

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

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

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

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

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

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

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

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

On December 19, 2023, and January 16, 2024, February 6, 2024, February 20, 2024, and March 5, 2024, the Town Council reviewed and discussed the Draft Revised Housing Element.

Justice, Diversity, Equity, and Inclusion
Like many other cities in the United States, Los Gatos has a history which includes racial injustice. The Town also has a long-standing commitment to being equitable and inclusive. In the last couple years, with racial justice issues at the forefront of local and national conversations, the Town has taken a more holistic approach to Justice, Equity, Diversity, and Inclusion work. The Town of Los Gatos values justice, equity, diversity, and

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-15 inclusion (JEDI). The Town works proactively to ensure the rights and opportunities of everyone in Los Gatos and opposes any attempts to undermine the safety, security, and rights of any members of the community. The Town promotes equal treatment, equitable distribution of and access to resources, and engagement in issues affecting the lives of residents, workers, and visitors. The Town does not tolerate discrimination, racial injustice, or police brutality. The Town works toward realizing the values of diversity, equity, and inclusion by taking specific actions to become a more inclusive community.

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

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

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

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

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

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

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

The Town’s work to further the goals and policies stated in this new Element include: hosting community conversations; adopting Diversity, Equity, and Inclusion as an ongoing Council Strategic Priority since 2021; implementing Police reforms; working with the California Senate and Assembly on the development of Senate Bill 1100, which updates public meeting laws to provide an important balance of maintaining freedom of speech, protecting public safety, and providing protection for elected officials; and developing a formal JEDI plan with goals, action items, and timelines.

On October 3, 2023, the Town Council adopted an enabling resolution establishing the Diversity, Equity, and Inclusion Commission (DEIC). The function of the Commission shall be to serve in an advisory capacity to the Town Council regarding matters pertaining to creating equitable opportunities and a sense of belonging within Town. The DEIC will be committed to Justice, Equity, Diversity, and Inclusion across all sectors within the Town of Los Gatos and the purpose of DEIC is to work to create more equitable opportunities and increase a sense of belonging for all Los Gatos community members and visitors through community engagement and collaborative activities.

Community Outreach
Farmers’ Market Informational Booth
Town staff hosted a 2040 General Plan Update and Housing Element Update informational booth at the Los Gatos Farmers’ Market on Sundays from 9:00 a.m. to 12:00 p.m. on the following dates:
 June 27, 2021.
 July 18, 2021.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-16 HCD Draft Revised 2023-2031 Housing Element May 2024  August 8, 2021.
 August 29, 2021.
 September 19, 2021.
 October 10, 2021.
 October 31, 2021.
 November 21, 2021.
 December 19, 2021.
 January 19, 2022.
 February 13, 2022.
 March 13, 2022.
 April 10, 2022.
 May 22, 2022.
 June 12, 2022.
 September 4, 2022.
 October 9, 2022.
 November 13, 2022.
 December 11, 2022.
 January 15, 2023.
 February 19, 2023.
 March 26, 2023.
 May 21, 2023.
 June 11, 2023.
 July 23, 2023.

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

Spring Into Green Informational Booth
On April 24, 2022, and April 24, 2023, Town staff hosted an informational booth for the 2040 General Plan Update and Housing Element Update at the Town of Los Gatos’ Spring into Green event. The outdoor event celebrates Keep Los Gatos Beautiful Month, environmental sustainability, and Earth Day. The festivities included environmentally focused exhibitor booths, a tree planting ceremony, the weekly Los Gatos Farmers’ Market, family-friendly activities, food, and live music. The informational booth provided an opportunity for Town staff to answer the public’s questions regarding housing opportunities and challenges within the Town, possible housing sites in Town, the General Plan Update and Housing Element Update process and key participation opportunities. 2040 General Plan Update
On June 30, 2022, the Town Council adopted the 2040 General Plan. As mentioned above, the 2040 General Plan includes a new chapter: Racial, Social, and Environmental Justice. The Racial, Social, and Environmental Justice Element includes goals, policies, and implementation programs that encourage and support local efforts to increase participation in the local political process and to improve local conditions relative to racial, social, and environmental justice issues. The themes covered in this element lay the foundation for creating a more equitable and inclusive Town for all residents of Los Gatos. The Racial, Social, and Environmental Justice Element focuses on the empowerment of the community, and especially of the members of the community who have not been previously heard.

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-17 General Plan Update Advisory Committee (GPAC)
To help guide the update to the General Plan, the Town Council appointed a GPAC. The GPAC was composed of the Town’s General Plan Committee (GPC) and three additional residents. The GPC includes two Town Council members, three Planning Commissioners, and four residents. The GPAC served to review and discuss issues, opportunities, and the development the Draft 2040 General Plan. The GPAC held more than 35 public meetings throughout the General Plan Update process, listening to community input and contributing to the development of Land Use Alternatives, and the content of the General Plan document.

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

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

10.1.6 Public Comment
Summary of Public Comment Topics
Public comments received on the Draft Housing Element addressed the following topics:
 Heath and environmental impacts on new residents based on housing location.  Inclusion of Senate Bill 9 (SB 9) and Accessory Dwelling Units (ADUs) as additional housing.  Consideration of sites owned by schools, public agencies, and religious organizations for housing.  Reduction in permit processing time and other governmental constraints.  Increase in labor standards.
 Errors and clarifications identified in data and analysis.

A full listing of public comments is included in Appendix I.

Summary of Public Comment Responses
Through the Housing Element update process the public comments received on the Draft Housing Element were addressed the following ways:
 Additional analysis and implementation program commitments to AFFH.  Increased programs, incentives, and tracking to encourage production of housing units through SB 9 and ADUs.
 Increased commitment to support, encourage, and incentivize housing on school, publicly owned, and religious sites.
 Additional analysis of constraints was added in Appendix C, and commitments for reduction of government constraints were increased, for example reduced story pole requirements.  New policy and implementation programs added to support local labor programs.  Numerous errors and clarifications were corrected/added throughout.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-18 HCD Draft Revised 2023-2031 Housing Element May 2024

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

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

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

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-19 Figure 10-4 Public Housing Buildings, Partial Bay Area Region Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-20 HCD Draft Revised 2023-2031 Housing Element May 2024 Figure 10-5 Housing Choice Vouchers by Census Tract
Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-21

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-22 HCD Draft Revised 2023-2031 Housing Element May 2024 Figure 10-6 Senior and Youth Population by Race, Los Gatos, 2000-2019 Source: ABAG Housing Needs Data Workbook
Population by Race/Ethnicity
Understanding the racial makeup of a town, city, and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices, and displacement that has occurred over time and continues to impact communities of color today.6
Figures 10-7 and 10-8 show the population distribution by race and ethnicities in the Bay Area, Santa Clara County, and specifically Los Gatos, through the period 2000 to 2019. Since 2000, the percentage of residents in the Town of Los Gatos identifying as “White, Non-Hispanic” has decreased by 13.3 percentage points. At the same time the percentage of residents of all “Other Race of Multiple Races, Non-Hispanic” has increased. In absolute terms, the “Asian/API, Non-Hispanic” population increased the most, while the “White, Non-Hispanic” population decreased the most.

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

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-23 Figure 10-7 Population by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
Figure 10-8 Population by Race and Ethnicity, Los Gatos, 2000-2019 Source: ABAG Housing Needs Data Workbook

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-24 HCD Draft Revised 2023-2031 Housing Element May 2024 Employment
Town residents most commonly work in the Financial and Professional Services industry. From January 2010 to January 2021, the unemployment rate in the Town decreased by three percentage points. Since 2010, the number of jobs located in the jurisdiction increased by 4,440 (28.8 percent).

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

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

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

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

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-25 Figure 10-9 Area Median Income by Race and Ethnicity, Los Gatos, 2019 Source: ABAG Housing Needs Data Workbook
People of color are more likely to experience poverty and financial instability as a result of Federal and local housing policies that have historically excluded them from the same opportunities extended to White residents.9 These economic disparities also leave communities of color at higher risk for housing insecurity, displacement, or homelessness. In Los Gatos, Hispanic or Latinx and Other Race or Multiple Races (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by White (Hispanic and Non-Hispanic) residents.

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-26 HCD Draft Revised 2023-2031 Housing Element May 2024 Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity (i.e., ability for individuals to stay in their homes) in a town, city, and region. Generally, renters may be displaced more quickly if prices increase. As of 2019, there are a total of 12,083 housing units in Los Gatos, and fewer residents rent than own their homes: 35 percent versus 65 percent. By comparison, 43.6 percent of households in Santa Clara County are renters, while 43.9 percent of Bay Area households rent their homes.

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

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

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

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

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

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

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-27  60 percent of homes in Los Gatos were single-family detached.  13 percent were single-family attached.
 9 percent were small multi-family (two to four units).  18 percent were medium or large multi-family (five or more units).

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

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

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

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

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

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

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-28 HCD Draft Revised 2023-2031 Housing Element May 2024

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

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

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

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

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

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-29 Figure 10-12 Percent of Children in Female Households, 2015-2019 Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-30 HCD Draft Revised 2023-2031 Housing Element May 2024 Senior Households
Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. Seniors, defined as persons who are 65 years or older, may live on fixed incomes and may have disabilities, chronic health conditions, and/or reduced mobility. Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups.

When cost-burdened seniors are no longer able to make house payments or rent payments, displacement from their homes can occur, putting further stress on the local rental market or forcing residents out of their community.

Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs, particularly for low-income seniors. Of seniors making less than 30 percent of AMI, 74 percent are spending the majority of their income on housing. For seniors making more than 100 percent of AMI, 86 percent are not costburdened and spend less than 30 percent of their income on housing.

People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive, and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care.

When it comes to housing, people with disabilities are not only in need of affordable housing, but accessibly designed housing, which offers greater mobility and opportunity for independence. Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness, and institutionalization, particularly when they lose aging caregivers. Overall, nine percent of people in Los Gatos have a disability of some kind.

State law also requires a Housing Element to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe intellectual disability. Some people with developmental disabilities are unable to work, rely on supplemental security income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.13 In Los Gatos, there are 123 persons with a developmental disability. Out of this nine percent of the Town’s population, 50 are children under the age of 18 (41 percent) and 73 are adults (60 percent). The most common living arrangement for individuals with disabilities in Los Gatos is the home of a parent/family/guardian.

Figure 10-13 Share of Population by Disability Status, 2019 Source: ABAG Housing Needs Data Workbook
13 For more information or data on developmental disabilities in your jurisdiction, contact the Golden Gate Regional Center for Marin, San Francisco and San Mateo Counties; the North Bay Regional Center for Napa, Solano and Sonoma Counties; the Regional Center for the East Bay for Alameda and Contra Costa Counties; or the San Andreas Regional Center for Santa Clara County.

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-31 Figure 10-14 Percent of Population with a Disability by Census Tract, 2019

Source: California Department of Housing and Community Development AFFH Data Viewer

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-32 HCD Draft Revised 2023-2031 Housing Element May 2024 Homelessness
Homelessness remains an urgent challenge in many communities across the State, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Many residents who have found themselves housing insecure have ended up homeless in recent years, either temporarily or longer term. Addressing the specific housing needs of the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction, and those dealing with traumatic life circumstances.

In Santa Clara County, the most common type of household experiencing homelessness is those without children in their care. Among households experiencing homelessness that do not have children, 87 percent are unsheltered. Of homeless households with children, most are sheltered in emergency shelters.

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

Consequently, people of color are often disproportionately impacted by homelessness, particularly Black residents of the Bay Area.

In Santa Clara County, White (Hispanic and Non-Hispanic) residents represent the largest proportion of residents experiencing homelessness and account for 44 percent of the homeless population, while making up 45 percent of the overall population.

Farmworkers
Across the State, housing for farmworkers has been recognized as an important and unique concern.

Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.

In Los Gatos, there were no reported students of migrant workers in the 2019-20 school year. The trend for the region for the past few years has been a decline of more than two percent in the number of migrant worker students since the 2016-17 school year. The change at the County level is a 50 percent decrease in the number of migrant worker students since the 2016-17 school year.

10.2.7 Governmental and Non-Governmental Constraints
Housing development is affected by government regulations and other non-governmental forces, such as the cost of land and building materials and the availability and cost of housing loans. A Housing Element is required to investigate the impact of these constraints as they present themselves in the municipality in which the Housing Element is being prepared. Please see Appendix C for a full discussion governmental and non-governmental constraints in the Town of Los Gatos.

Revisions to the Zoning Code are necessary to achieve consistency with changes in State housing law.

Anticipated zoning changes are detailed in the implementation programs found in Section 10.6 of this Housing Element. Governmental constraints to the development of affordable housing exist in every community. The types of governmental constraints in the Town are typical of those constraints in other communities and include zoning regulations, code enforcement, on and off-site improvements, fees and exactions, processing times, and permit procedures as detailed further in Appendix C. These categories are required to protect the public’s health and safety or to provide for necessary infrastructure to support the project.

In terms of non-governmental constraints, land costs will remain a constraint to affordable housing. To help offset this constraint, programs to use Town-owned lands, such as Town parking lots could be utilized. Due to the cost of construction materials, the Town may subsidize affordable housing projects with available funds dedicated to housing in order to increase affordable housing inventory.

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-33

10.3 Site Inventory and Opportunities
This section summarizes the housing needs of the Town as determined through the comprehensive housing data assessment and analysis presented in Appendix D and serves as the basis for housing goals, policies, and actions. The housing summary gives an overview of population trends, characteristics of the housing stock, housing affordability, and special needs households.

10.3.1 Introduction
The Plan Bay Area 2050 Final Blueprint 14 forecasts that the nine-county Bay Area will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, HCD has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very lowincome households to market rate housing. This calculation, known as the RHNA, is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost-burdened households and seek to bring the region more in line with comparable ones. Compared to previous cycles, these new laws governing the methodology for how HCD calculates the RHNA resulted in a significantly higher number of housing units for which the Bay Area must plan compared to previous cycles.

10.3.2 Sites Summary
The vacant, partially vacant, and underutilized sites identified in this report are sufficient to accommodate Los Gatos’ Regional Housing Needs Allocation for the 6th Cycle planning period. The sites also accommodate the recommended buffer of 15 percent above RHNA, which would equal a capacity of approximately 299 additional units. This “cushion” for capacity above the base RHNA number is highly recommended because of the State’s no-net-loss policy, which precludes jurisdictions from approving development that results in an overall housing site deficit. The “cushion” essentially provides a degree of flexibility for policy makers as they make development decisions. Many of the sites identified in this report have existing uses that would need to be demolished before new housing could be constructed.

For communities like Los Gatos that are largely built-out, bounded by hillsides with restricted developments opportunities due to fire danger, and surrounded on all sides by other communities, redevelopment and densification is the only practical solution to providing a fair share of future housing for the San Francisco Bay Area. By its nature, such redevelopment is more costly and more time consuming than building new units on vacant land. To offset these constraints, higher densities are proposed in some areas. These higher densities act as a market incentive to offset the added cost and time required to build new housing on redeveloped sites.

Property owner interest will be pivotal for facilitating single-family site opportunities and policies to add housing through SB 9, which allows for up to four units on a property zoned for single-family residences. Table 10-3 provides a summary of the number of housing units that have been produced since June 30, 2022; are projected through pipeline projects, and ADUs; and are projected for the housing sites included in the Site Inventory for the Town of Los Gatos, and how they compare to the RHNA allocation. 14 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It covers four key issues: the economy, the environment, housing and transportation.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-34 HCD Draft Revised 2023-2031 Housing Element May 2024 Table 10-3 RHNA Credits and Sites Strategies
RHNA Credit
Affordability Credit
Very LowIncome LowIncome ModerateIncome
AboveModerate
Income
Total
Entitled/Permitted/Under Construction/Finaled
(June 30, 2022, to January 31, 2023)
- Single-Family Units and Housing Projects 0 0 0 2 2
- ADUs 0 3 11 9 23
Pipeline Projects 0 1 0 190 191
Projected ADUs (1/1/2023-1/31/2031) 60 60 60 20 200
Total 60 64 71 221 416
RHNA 537 310 320 826 1,993
Remaining RHNA 477 246 249 605 1,577
Housing Element Overlay Zone (HEOZ) Sites 634 357 340 624 1,955 Owner Interest/Conceptual Development Plans 480 283 264 304 1,331 Additional Sites 154 74 76 320 624
Surplus above Remaining RHNA 157 111 91 19 378
% Surplus 33% 45% 37% 3% 24%
Source: Town of Los Gatos

10.3.3 Summary of Quantified Objectives
While the Town cannot control the amount of housing that is built during any specific period of time, the Town does intend to make an effort to achieve housing production at a level that is consistent with its RHNA.

Many programs and policies reduce barriers and create opportunities for a balanced community. These goals are essential to meeting the Town’s housing needs but are more qualitative in nature. The sites, calculated at their net, minimum density, in addition to Accessory Dwelling Unit (ADU) Projections, Pipeline Projects, and RHNA credits for housing units that were finaled, permitted, or approved after this date, or were under construction as of June 30, 2022, have a total, net capacity of 2,371 units and are sufficient to meet the Town’s RHNA of 1,993 units. Between Implementation Programs I, AI, and AJ, it is assumed that 48 housing units will be rehabilitated, and all existing affordable units will be conserved or preserved. Los Gatos reasonably expects that a total of 2,371 units will be developed, as described in the tables below:

Table 10-4 2023-2031 Quantified Objectives
Income Category New Construction Rehabilitation Conservation/Preservation Very Low Income 694 24 49
Low Income 421 24 136
Moderate Income 411 0 179
Above Moderate Income 845 0 114
Totals 2,371 48 478
Source: Town of Los Gatos
 New Construction Objective: Reflects the Town’s 2023-2031 RHNA.  Rehabilitation Objective: Reflects goal to assist a total of 48 very low-income and low-income households through Implementation Programs I, AI, and AJ.

ITEM NO. 17.

10. Housing Element
May 2024 HCD Draft Revised 2023-2031 Housing Element 10-35  Conservation/Preservation Objective: Reflects maintaining affordability on the current inventory of 257 Below Market Price (BMP) rental units, maintaining affordability of 107 Housing Choice Vouchers, and preserving 114 existing mobile home units in the Bonnie View mobile home park and Creekside Village.

10.4 Energy and Resource Conservation
This section summarizes background information and actions being undertaken by the Town of Los Gatos to address energy and resource conservation. The information is excerpted from Chapter 8 (Environment and Sustainability Element) of the 2040 General Plan. For a full discussion of energy-related issues, please see Chapter 8, Section 8.6 (Energy) of the 2040 General Plan.

10.4.1 Opportunities for Energy Conservation
With the escalation in energy prices, consumers and builders have once again become more aware of energy costs. The Town must balance between development and environmental stewardship to maintain a strong economy and, at the same time, protect the environment. The following section highlights building standards and conservation codes contributing to that success.

Title 24 of the California Administrative Code sets forth mandatory energy standards for new development and requires adoption of an "energy budget." In turn, the home building industry must comply with these standards while localities are responsible for enforcing the energy conservation regulations. In 2015, the Town adopted a Solar Energy Code for the purpose of reducing energy costs for new residential developments and adopted an energy budget. In addition, State law (both the Residential Building Code and CalGreen) have standards that significantly reduce energy use in new residential construction.

Increasing energy costs, persistent drought, and climate change have reshaped how Californians think when it comes to buying new homes. Solar roof panels have become more commonplace over the past several decades, with both State and Federal tax credits available. Energy-efficient appliances and water wise landscaping have become amenities of choice for homebuyers. Developers can make the most of this paradigm shift by embracing “green” building practices that incorporate the energy and water efficiencies that consumers desire as well as environmentally friendly construction that minimizes waste and maximizes the use of resources.

Pacific Gas and Electric (PG&E) distributes electricity throughout Los Gatos, with supplies purchased from Silicon Valley Clean Energy (SVCE). PG&E supplies natural gas to the community as well. The Town is committed to its partnership with other local communities under the umbrella of SVCE. Through this partnership, Los Gatos residents and businesses receive carbon-free electricity at lower rates than those that arise from fossil fuel consumption. SVCE works to innovate and implement new clean energy programs and presents many of these innovations at community meetings, Earth Day events, and presentations to businesses. SVCE’s 2020 Community Benefits Summary indicates Los Gatos achieved the following results:
 $813,000 in on-bill savings for Los Gatos SVCE customers.  14,700 households and businesses served.
 99 percent reduction in electric utility-related emissions (34,897,000 pounds greenhouse gas emissions avoided by providing clean energy).
 $29,900 in cash payments to customers for generating surplus solar energy.

Achieving these goals adds to the overall GHG reduction strategy, with a focus on lowering dependence on carbon-based fuels and energy sources. Energy efficiency involves a careful balance of assessing energy sources, educating the public on home and business renewable energy use, implementing energy efficiency strategies, and encouraging and incentivizing widespread and ongoing implementation of those strategies. This in turn translates into lower ongoing costs to homeowners and renters.

10.4.2 Energy-Related Goals and Policies
As required by State housing law, the Housing Element must analyze energy conservation opportunities in residential development. In the following section, Goal HE-5 and its related policies and actions address energy conservation in residential development in Los Gatos.

ITEM NO. 17.

HCD Draft Revised 2023-2031 Housing Element
10-36 HCD Draft Revised 2023-2031 Housing Element May 2024 The relevant Environment and Sustainability Element goals and policies in the 2040 General Plan are:
 Carbon-Neutral Energy (ENV-11.1). Support SCVE to continue to procure carbon-neutral energy for longterm and short-term supplies, including renewable resources.  Energy Efficiency in Municipal Facilities (ENV 11.2). Invest in cost-effective energy efficiency and energy conservation programs in municipal facilities.
 Future Demand Reduction (ENV 11.3). Explore cost-effective, reliable, and feasible energy efficiency and demand reduction opportunities and continue to use the Sustainability Plan to include education programs for these opportunities.
 Conservation and Reduction (ENV 11.4). Maximize the conservation and efficient use of energy in existing and new residences, businesses, and municipal buildings in Los Gatos.  Solar Systems (ENV 11.5). Support the maximum economic use of solar electric (photovoltaic) systems on-site to augment the renewable energy portfolio available to new development, businesses, and municipal facilities.
 Organic Waste Recycling (ENV 11.6). Comply with SB 1383 regulations to maximize energy recovery from organic materials such as yard trimmings, food waste, and other compostable resources.

10.5 Goals, Policies, and Implementation Programs
The Town does not build housing but, rather creates the policies and implementation programs to plan for where the housing can be located and how many units can be built on potential sites. The Town is responsible for enabling the production of housing by reducing regulatory barriers, providing incentives, and supporting programs that create or preserve housing, especially for vulnerable populations. The Town encourages production of a diversity of new housing to ensure an adequate supply is available to meet the needs of existing and future residents. To enable the construction of quality housing, the Town has identified the following goals, policies, and actions.

Goal HE-1 Facilitate All Types of Housing Construction.

The Town encourages the production of diverse new housing options to ensure that an adequate supply is available to meet the existing and future needs of all residents.

Policy HE-1.1 Adequate Sites
Designate sufficient, residentially zoned land at appropriate densities to provide adequate sites to accommodate Los Gatos’ RHNA for 2023–2031 and monitor residential development to ensure there is an adequate level of remaining development capacity.

Policy HE-1.2 Multi-Family Housing Densities
Encourage builders to develop projects on multi-family designated properties at the high end of the applicable density range.

Policy HE-1.3 Infrastructure
All new residential development shall be sufficiently served by public services and facilities, including pedestrian and vehicular circulation, bike lanes, water and wastewater services, police, fire, schools, and parks.

Policy HE-1.4 Housing Design
Ensure that all new housing is well designed and fosters a sense of community.

Policy HE-1.5 Variety of Housing Choices
Encourage the production of housing that meets the needs of all economic segments of the Town, including lower and moderate households, to maintain a balanced community.

AFFH