Los Gatos City Council
November 19, 2024

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

HOW TO PARTICIPATE
The public is welcome to provide oral comments in real-time during the meeting in three ways:
 Zoom Webinar (Online): Join from a PC, Mac, iPad, iPhone or Android device. Please use this URL to join: https://losgatoscagov.zoom.us/j/82232739012?pwd=1zlbRu029_33oyBb9l3AyTZQ7D2MEQ.kN8FbuOklNsmz-Jj Passcode: 793054 You can also type in 822 3273 9012 in the “Join a Meeting” page on the Zoom website at https://zoom.us/ and use passcode 793054. o When the Mayor announces the item for which you wish to speak, click the “raise hand” feature in Zoom. If you are participating by phone on the Zoom app, press *9 on your telephone keypad to raise your hand.
 Telephone: Please dial (877) 336-1839 for US Toll-free or (636) 651-0008 for US Toll. (Conference code: 1052180)
o If you are participating by calling in, press #2 on your telephone keypad to raise your hand.
 In-Person: Please complete a “speaker’s card” located on the back of the chamber benches and return it to the Town Clerk before the meeting or when the Mayor announces the item for which you wish to speak.

NOTES: (1) Comments will be limited to three (3) minutes or less at the Mayor’s discretion. (2) If you are unable to participate in real-time, you may email to [email protected] the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment). All comments received will become part of the record.
(3) Deadlines to submit written comments are:
11:00 a.m. the Thursday before the Council meeting for inclusion in the agenda packet. 11:00 a.m. the Monday before the Council meeting for inclusion in an addendum. 11:00 a.m. on the day of the Council meeting for inclusion in a desk item. (4) Persons wishing to make an audio/visual presentation must submit the presentation electronically to [email protected] no later than 3:00 p.m. on the day of the Council meeting.

TOWN OF LOS GATOS

COUNCIL MEETING AGENDA
NOVEMBER 19, 2024
110 EAST MAIN STREET AND TELECONFERENCE

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

CALL MEETING TO ORDER

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

PLEDGE OF ALLEGIANCE

PRESENTATIONS
i. Los Gatos Thrives Foundation Presentation.

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

1. Approve the Minutes of the October 15, 2024 Town Council Meeting.

2. Receive the Monthly Financial and Investment Report for September 2024.

3. Authorize the Town Manager to Execute a Four-and-a-Half-Year Agreement with ECS Imaging, Inc. for Laserfiche Software Maintenance, Support, and Scanning Services in a Total Amount Not to Exceed $315,000.

4. Authorize the Town Manager to Execute a One-Year Agreement for Services with OpenGov, Inc. for Enterprise Asset Management System Services and Procurement System Services Effective December 30, 2024, Through December 29, 2025, for a Total Agreement Amount of $66,355.59 With Four One-Year Options Thereafter.

5. Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for the Smart Signals Field Improvements Project (Traffic Signal Modernization) CIP No. 813-0227 Completed by St. Francis Electric, Inc., and Authorize the Town Clerk to File for Recordation.

6. Authorize the Town Manager to Enter into an Agreement with MBS Business Systems (MBS) to Provide Multifunctional Printer Purchases, Replacement, and Maintenance Services for the Town of Los Gatos in an Amount Not to Exceed $260,540.

VERBAL COMMUNICATIONS (Members of the public are welcome to address the Town Council on any matter that is not listed on the agenda and is within the subject matter jurisdiction of the Town Council. The law generally prohibits the Town Council from discussing or taking action on such items. However, the Council may instruct staff accordingly. To ensure all agenda items are heard, this portion of the agenda is limited to 30 minutes. In the event additional speakers were not heard during the initial Verbal Communications portion of the agenda, an additional Verbal Communications will be opened prior to adjournment. Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)

PUBLIC HEARINGS (Applicants/Appellants and their representatives may be allotted up to a total of five minutes for opening statements. Members of the public may be allotted up to three minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of three minutes for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.)

7. Consider Adoption of a Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008).

OTHER BUSINESS (Up to three minutes may be allotted to each speaker on any of the following items.)

8. Approve the Youth Commission Work Plan for School Year 2024/25.

9. Consider and Provide Direction to Staff regarding the Finance Commission’s Recommendation that the Town Council Engage a Professional Consulting Firm to Prepare a Comprehensive Fiscal Impact Analysis, Including Scenario Sensitivity Analysis, with Risks and Opportunities, which will Evaluate the Potential Fiscal Impact of Planned Growth.

PUBLIC HEARINGS (Applicants/Appellants and their representatives may be allotted up to a total of five minutes for opening statements. Members of the public may be allotted up to three minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of three minutes for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.)

10. Consider the Following Actions Related to Certain Sections of Blossom Hill Road:
a. Accept the 2023 Engineering and Traffic Survey Update; and b. Introduce an Ordinance Amending Section 15.30.235 of the Town Code Establishing Speed Limits. Ordinance Title: An Ordinance of the Town Council of the Town of Los Gatos Amending Section 15.30.235, “Establishing Speed Limits on Certain Streets,” of the Town Code Establishing Speed Limits.

11. Introduce an Ordinance Amending the Town Code Chapter 14 Related to “Peddlers and Solicitors” and Replacing Article VII “Pushcarts” with “Sidewalk Vending.” Ordinance Title: An Ordinance of The Town Council of The Town of Los Gatos Amending Sections 14.40.010, “Definitions,” and 14.40.015, “Nonapplicability,” of Article IV, “Peddlers And Solicitors,” of Chapter 14, “Licenses and Miscellaneous Business Regulations,” of The Town Code and Replacing Article VII, “Pushcarts,” of Chapter 14, “Licenses and Miscellaneous Business Regulations,” with a New Article VII, “Sidewalk Vending” in the Town Code.

12. Introduce a Draft Revised Sign Ordinance. Ordinance Title: An Ordinance of the Town Council of the Town of Los Gatos Amending Chapter 29, “Zoning Regulations,” Article I, “In General,” Division 3, “Signs,” of the Town Code Regarding Sign Regulations.

COUNCIL / MANAGER MATTERS
Discuss a Request from Council Member Moore to Agendize a Resolution to Prohibit the Use of Town Resources to Implement Potential Federal Regulations on Topics Such as Immigration, Homelessness, Climate, Women's Rights, and LGBTQ+ Rights.

ADJOURNMENT (Council policy is to adjourn no later than midnight unless a majority of Council votes for an extension of time.)
ADA NOTICE In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Clerk’s Office at (408) 354- 6834.

Notification at least two (2) business days prior to the meeting date will enable the Town to make reasonable arrangements to ensure accessibility to this meeting [28 CFR §35.102-35.104].

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/19/2024
ITEM NO: 1
DRAFT
Minutes of the Town Council Meeting
Tuesday, October 15, 2024
7:00 P.M.

The Town Council of the Town of Los Gatos conducted a regular meeting in-person and via teleconference.

MEETING CALLED TO ORDER AT 7:11 P.M.

ROLL CALL

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

Absent: None

PLEDGE OF ALLEGIANCE
Aleksandra Rombakh led the Pledge of Allegiance. The audience was invited to participate.

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

1. Approve Closed Session Council Meeting Minutes of October 1, 2024.

2. Approve Council Meeting Minutes of October 1, 2024.

3. Receive the Monthly Financial and Investment Report for August 2024.

4. Vegetation Management – Townwide Open Spaces Project (CIP No. 832-4508):
a. Award and Authorize the Town Manager to Execute a Contract with Anvil Builders Inc. dba Sonoma Tree Surgery in an Amount Not to Exceed $1,513,712.00; and b. Authorize Staff to Issue Change Orders in an Amount Not to Exceed 20% of the Contract Value.

5. Approve the Following Actions Related to Civic Center Improvements:
a. Authorize the Town Manager to Award and Execute a Contract with Alex Kushner General Inc., for the Americans with Disabilities Act (ADA) Restrooms and HR Offices Project (CIP No. 821-2117) in an Amount of $450,000;
b. Authorize Staff to Execute Change Orders in an Amount Not to Exceed Twenty Percent (20%) of the Contract Award Amount; and
c. Approve the Project Construction Plans with Addenda.

6. Authorize the Town Manager to Execute a First Amendment to the Agreement for Services with Sequoia Ecological Consulting Inc. for an Adjusted Contract Amount of $231,355 for Vegetation Management – Townwide Open Spaces Project (CIP No. 832-4508).

7. Authorize an Expenditure Budget Adjustment in the Amount of $59,621 in Fiscal Year 2024/2025 from the Available General Fund Capital/Special Project Reserve to Recognize the Silicon Valley Animal Control Authority (SVACA) Joint Powers Authority Agreement OneTime Participating Agency Capital Costs.

ITEM NO. 1.

PAGE 2 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of October 15, 2024 DATE: October 15, 2024

8. Approve and Authorize the Town Manager to Execute a Side Letter Agreement with the Los Gatos Police Officers’ Association to Increase Holiday in Lieu Compensation, Add Veterans Day as a Holiday, and Authorize an Expenditure Budget Adjustment in the Amount of $35,000 from the Available General Fund Capital/Special Projects Reserve.

Council Member Ristow pulled item five.

Mayor Badame opened public comment.

No one spoke.

Mayor Badame closed public comment.

MOTION: Motion by Council Member Ristow to approve consent items one through four and six through eight. Seconded by Vice Mayor Hudes.

VOTE: Motion passed unanimously by roll call vote.

VERBAL COMMUNICATIONS
Gus
- Read a passage from a book and commented on the World Cup.

Lynley
- Commented on qualities of a good leader.

Rick K
- Commented on concerns with the electoral process, and requested the Council consider adopting the resolution prepared by United Sovereign Americans.

Jean R
- Read the first portion of the resolution prepared by the United Sovereign Americans.

Dee
- Read the second portion of the resolution prepared by the United Sovereign Americans.

Alicia Schoolcraft
- Read the last portion of the resolution prepared by the United Sovereign Americans.

Teresa
- Requested the Council adopt the resolution prepared by United Sovereign Americans.

Sue
- Commented concerns with the election process, and requested the Council consider adopting the resolution prepared by the United Sovereign Americans.

ITEM NO. 1.

PAGE 3 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of October 15, 2024 DATE: October 15, 2024
Linda Swenberg
- Commented on concerns with congestion on Blossom Hill Road and the Complete Streets and Transportation Commission.

Brian Bertacini
- Commented on concerns with issues in the election process.

Dennis Jamison, Election Integrity Project California
- Commented on concerns with issues in the election process and requested the Council support the resolution prepared by United Sovereign Americans.

Joe Enz, Friends of the Los Gatos Creek
- Commented on safety concerns and his experience as a library patron.

Rich Stevens
- Thanked the Council for hearing his concerns.

Carin Yamamoto
- Commented on an error with a map on the Town website.

OTHER BUSINESS

9. Authorize the Town Manager to Execute a License Agreement with Flock Safety to Retain Privately Funded Cameras Installed in the Town of Los Gatos Right-of-Way.

Nicolle Burnham, Parks and Public Works Director, presented the staff report.

Mayor Badame opened public comment.

Fred Faltersack
- Spoke about the intent of the camera installation; and commented on a concern with the proposed license agreement.

Mayor Badame closed public comment.

Council discussed the item.

MOTION: Motion by Council Member Ristow to authorize the Town Manager to negotiate and execute a License Agreement with Flock Safety to retain privately funded cameras installed in the Town of Los Gatos right-of-way in attachment one with the addition the condition that all data gathered from any cameras on [the] public rightof-way be shared with the Town and with the Police Department. Seconded by Vice Mayor Hudes.

VOTE: Motion passed unanimously by roll call vote.

ITEM NO. 1.

PAGE 4 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of October 15, 2024 DATE: October 15, 2024

10. Receive a Report and Provide Direction to Staff on Potential Reach Code Modifications.

Robert Gray, Chief Building Official, presented the staff report.

Mayor Badame opened public comment.

Johanes Swenberg
- Spoke in support of option one [Repeal Existing Reach Code and Without Adopting Alternative Requirements] and commented on concerns.

Linda Swenberg
- Spoke in support of option one [Repeal Existing Reach Code and Without Adopting Alternative Requirements] and commented on concerns.

Mayor Badame closed public comment.

Council discussed the item.

MOTION: Motion by Council Member Moore to direct staff to proceed with Option three which repeals portions of the existing Reach Code and sets NOx (nitrogen oxide) emission appliance thresholds that regulate air quality. Seconded by Council Member Ristow.

VOTE: Motion passed 3-2 by roll call vote. Vice Mayor Hudes and Mayor Badame voted no.

Mayor Badame called a recess at 9:04 p.m.

The meeting reconvened at 9:14 p.m.

11. Consider the Following Related to the Town’s Fleet and Equipment:
a. Receive a Report Entitled “Town of Los Gatos Fleet Management Analysis”; and b. Adopt a Resolution to Modify Town Council Policy 4-05 “Town Vehicle and Equipment Acquisition and Replacement Policy.” RESOLUTION 2024-049 Nicolle Burnham, Director of Parks and Public Works, presented the staff report.

Mayor Badame opened public comment.

No one spoke.

Mayor Badame closed public comment.

Council discussed the item.

ITEM NO. 1.

PAGE 5 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of October 15, 2024 DATE: October 15, 2024
MOTION: Motion by Vice Mayor Hudes to receive the report entitled “Town of Los Gatos Fleet Management Analysis” (Attachment 1) and adopt a resolution to modify Town Council Policy 4-05: “Town Vehicle and Equipment Acquisition and Replacement Policy” (Attachment 3). Seconded by Council Member Ristow.

VOTE: Motion passed unanimously by roll call vote.

Pulled Consent Items

5. Approve the Following Actions Related to Civic Center Improvements:
a. Authorize the Town Manager to Award and Execute a Contract with Alex Kushner General Inc., for the Americans with Disabilities Act (ADA) Restrooms and HR Offices Project (CIP No. 821-2117) in an Amount of $450,000;
b. Authorize Staff to Execute Change Orders in an Amount Not to Exceed Twenty Percent (20%) of the Contract Award Amount; and
c. Approve the Project Construction Plans with Addenda.

Nicolle Burnham, Director of Parks and Public Works, presented the staff report.

Mayor Badame opened public comment.

Kimberly Snyder, New Museum Los Gatos (NUMU) Executive Director - Commented on concerns with the impacts of the project and requested a one-time mitigation fee.

Julie Micallef, NUMU Board President
- Commented on concerns with the impacts of the project and requested $50,000.

Joanne Rodgers
- Commented on concerns with the projected cost of construction.

Lee Quintana
- Commented on concerns with the project process.

Mayor Badame closed public comment.

Council discussed the item.

ITEM NO. 1.

PAGE 6 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of October 15, 2024 DATE: October 15, 2024
MOTION: Motion by Council Member Ristow to authorize the Town Manager to award and execute a contract with Alex Kushner General Inc., for the Americans with Disabilities Act (ADA) Restrooms and HR Offices Project (CIP No. 821-2117) in an amount of $450,000 as detailed in attachment one; authorize staff to execute change orders in an amount not to exceed twenty percent (20%) of the contract award amount; and approve the project construction plans with addenda. Seconded by Council Member Moore.

VOTE: Motion passed 3-2 by roll call vote. Vice Mayor Hudes and Mayor Badame voted no.

COUNCIL/TOWN MANAGER REPORTS
Council Matters
- Council Member Ristow stated she met with the NUMU Executive Director and Board Members; property owners; developers; president of the Chamber of Commerce; and residents; attended the League of Women Voters Pros and Cons event; St. Mary’s Country Fair; the one year celebration for Domas; Rinconada Water Treatment Plant Reliability Project public meeting; the Unhoused People Environment Summit by Valley Water; and the Arts and Culture Commission Master Arts Plan public input station at the Library. - Council Member Moore stated he held his Council Member Community Coffee at Gardenia; met with the Union School District Superintendent Dr. Carrie Andrews; the Chamber of Commerce Executive Director, Jennifer Lin; attended a Youth Commission meeting; met with residents on a variety of topics; and encouraged everyone to register and vote in the upcoming election.
- Council Member Rennie stated he attended the Silicon Valley Clean Energy Oversight Authority (SVCEA) Board meeting and a closed session to review the SVCEA CEO. - Vice Mayor Hudes stated he attended a Los Gatos Thrives Foundation Executive Committee meeting; the Los Gatos Thrives Foundation Monday Movie; the Los Gatos Thrives Foundation Community Center Design Workshop; the Sourcewise Commission meeting; observed a Diversity Equity and Inclusion (DEI) Commission meeting; and participated in the Cities Association of Santa Clara County Board meeting. - Mayor Badame stated she participated in Leadership Los Gatos; met with Jim Foley of Pennant Properties; participated in a ribbon cutting for the 25 th anniversary of Kiss &
Makeup Los Gatos; and attended Saratoga’s annual State of the City event; participated in a ribbon cutting for the 15 year anniversary of Therapy Works; and National School Lunch Week at Blossom Hill Elementary School handing out lunches with Paul Johnson the Superintendent of the Los Gatos Union School District.

Town Manager Matters
- Invited the community to give their input on the Public Arts Master Plan at the Los Gatos Library through Friday.
- Announced the November 5 Council Meeting has been cancelled and Council meetings will resume on November 19 with the new Town Manager, Chris Constantin.

ITEM NO. 1.

PAGE 7 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of October 15, 2024 DATE: October 15, 2024

ADJOURNMENT
The meeting adjourned at 10:57 p.m.

Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Town Clerk

ITEM NO. 1.

PREPARED BY: Eric Lemon
Finance and Accounting Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/19/2024
ITEM NO: 2
DATE: November 7, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive the Monthly Financial and Investment Report for September 2024 RECOMMENDATION:

Receive the Monthly Financial and Investment Report for September 2024.

BACKGROUND:

California Government Code Section 41004 requires that the Town Treasurer submit to the Town Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The Finance Director assumes the Town Treasurer role.

Attachment 1 contains the September 2024 Monthly Financial and Investment Report which fulfills this requirement.

The September 2024 Monthly Financial and Investment Report will be received by the Finance Commission at its December 9, 2024, regular meeting.

DISCUSSION:

The September 2024 Monthly Financial and Investment Report includes a Fund Balance Schedule, representing estimated funding available for all funds at the beginning of the fiscal year and at end of the respective month.

As operations fluctuate month to month, there are differences between balances in one month to balances in another month, and such differences may be significant due to the type of activity in those months as well as the presentation of those reports are based on estimates using the information available. This is demonstrated by the attached September 30, 2024 fund

ITEM NO. 2.

PAGE 2 OF 3
SUBJECT: Monthly Financial and Investment Report for September 2024 DATE: November 7, 2024
balance report. In the case that the differences are extraordinary and unanticipated, we will ensure we present more information to explain the differences.

The September 30, 2024 estimated fund balances differ from the August 31, 2024 estimated fund balances due to the normal day to day activity where revenue and expenditure activity in one month have a larger shift in one month from the other. The July 1, 2024 fund balances include all transactions posted at the time of preparing this report except the final fund balances allocations which occur closer to the issuance of the draft Annual Comprehensive Financial Report. On November 25, 2024, Final fund reserves allocation will be provided to the Finance Commission in the draft Annual Comprehensive Financial Report.

Please note that the amount in the Fund Schedule differs from the Portfolio Allocation and Treasurer’s Cash Fund Balances Summary schedule because assets and liabilities are components of the Fund Balance.

As illustrated in the summary below, Total Cash is adjusted by adding Total Assets less the amount of Total Liabilities to arrive at the Ending Fund Balance – which represents the actual amount of funds available.

As of September 30, 2024, the Town’s financial position (Assets $85.99M, Liabilities $29.66M, and Fund Equity $56.33M) remains strong and the Town has sufficient funds to meet the cash demands for the next six months.

As of September 30, 2024, the Town’s weighted portfolio yield for investments under management was 4.45% which was 13 basis points below the Local Agency Investment Fund (LAIF) yield of 4.58% for the same reporting period. As of September 30, 2024, the LAIF portfolio’s weighted average maturity (WAM) is 231 days versus the Town’s longer WAM of 728 days. The longer WAM for Town assets under management reflects the Town’s strategy to take advantage of higher yields associated with longer maturities balanced with shorter-term yields available on investments held with the State’s LAIF. The Town’s weighted average rate of return on investments under management of 4.45% at the close of September was 2 basis points lower when compared to the prior month’s return of 4.47% reported as of August 31, 2024.

ITEM NO. 2.

PAGE 3 OF 3
SUBJECT: Monthly Financial and Investment Report for September 2024 DATE: November 7, 2024
Since September 2023, LAIF yields have climbed from 353 basis points (3.53%) to 458 basis points (4.58%) through the end of September 2024.

Staff, in coordination with the Town’s investment advisor, primarily replaced maturing investments with long-term maturities in the three-to-four-year maturity range. These investments capture current yields that exceed the rates expected to be earned in the LAIF pool during that same period. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing.

After a rate change back in July of 2023, the Federal Open Market Committee (FOMC) did not change rates again until their September 18, 2024, meeting when they approved a 1/2 percentage basis point decrease from 5.5% to 5.0%. Furthermore, on November 7, 2024, the Federal Reserve voted to approve an additional 1/4 basis point decrease from 5.0% to 4.75%.

These changes support the Federal Open Market Committee’s goal to support maximum employment and bring year-to-year inflation to its targeted level of 2%.

The US economy added 142,000 jobs in August, below the 165,000 expected, and up from a downwardly revised 89,000 in July. Besides the pandemic, it was the weakest three months of private sector hiring since 2012. The unemployment rate fell slightly from 4.3% to 4.2%. Wage growth rose from 3.6% to 3.8%.

The Town's investments are in compliance with the Town's Investment Policy dated February 21, 2023, and are also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.

CONCLUSION:

Receive the Monthly Financial and Investment Report for September 2024.

Attachments:

1. Financial and Investment Report (September 2024)

ITEM NO. 2.

Weighted Average YTM Portfolio Yield on Investments
under Management 4.45%
Weighted Average Maturity (days) 728
This Month Last Month One year ago
Portfolio Allocation & Treasurer's Cash Balances $67,158,455 $69,642,660 $66,196,260 Managed Investments $50,153,359
Local Agency Investment Fund $11,702,446
Reconciled Demand Deposit Balances $5,302,651
Portfolio Allocation & Treasurer's Cash Balances $67,158,455 Benchmarks/ References:

Town's Average Yield 4.45% 4.47% 3.77%
LAIF Yield for month 4.58% 4.58% 3.53%
3 mo. Treasury 4.62% 5.11% 5.46%
6 mo. Treasury 4.40% 4.86% 5.55%
2 yr. Treasury 3.64% 3.92% 5.05%
5 yr. Treasury (most recent) 3.56% 3.70% 4.61%
10 Yr. Treasury 3.78% 3.90% 4.57%
Town of Los Gatos
Summary Investment Information
September 30, 2024
0 - 1 year
32%
1 - 2 years
19%
2 - 3 years
19%
3 - 5 years
30%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated February 21, 2023, and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. 1 ATTACHMENT 1 Page 15
ITEM NO. 2.

Month YTD
Cash & Investment Balances - Beginning of Month/Period $ 69,642,659.67 $ 81,368,409.88 Receipts 2,928,307.32 15,252,169.42
Disbursements (5,412,511.91) (29,462,124.22)
Cash & Investment Balances - End of Month/Period $67,158,455.08 $67,158,455.08 Portfolio Allocation Amount % of Portfolio
Max. % or $ Allowed
per State Law or Policy
BNY MM $254,324.64 0.41% 20% of Town Portfolio
US Treasury Notes $20,054,713.77 32.42% No Max. on US Treasuries Government Agency Debenture Notes $15,904,019.60 25.71% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $13,940,300.50 22.54% 30% of Town Portfolio Local Agency Investment Fund $11,702,445.78 18.92% $75 M per State Law Subtotal - Investments 61,855,804.29 100.00%
Reconciled Demand Deposit Balances 5,302,650.79
Total Portfolio Allocation & Treasurer's Cash Balances $67,158,455.08

0.0401

0.0388
Town of Los Gatos
Portfolio Allocation & Treasurer's Cash Balances
September 30, 2024
BNY MM

0.41%
US Treasury Notes

32.42%
Government Agency Debenture
Notes

25.71%
Corporate Medium Term Bonds

22.54%
Local Agency Investment Fund

18.92%
Portfolio Investment Allocation
$66.2 M $67.2 M
$0.0 M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
$70.0 M
$80.0 M
$90.0 M
Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Treasurer's Fund Balances
2

ITEM NO. 2.

September 2024 September 2024 September 2024
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:

Cert. of Participation 2002 Ser A Reserve Fund $ 705,886.86 $ - $ 2,853.96 $ 16,781.15 $ 691,959.67 Note 1 Cert. of Participation 2010 Ser Lease Payment Fund 965.23 - 3.74 - 968.97 Note 2 Cert. of Participation 2002 Ser A Lease Payment Fund 667.33 16,781.15 2.51 - 17,450.99 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,400,920.33 - 6,121.48 - 1,407,041.81 Note 2 Total Restricted Funds: $ 2,108,439.75 $ 16,781.15 $ 8,981.69 $ 16,781.15 $ 2,117,421.44 CEPPT IRS Section 115 Trust 2,289,156.52 - 39,148.84 - $ 2,328,305.36 Note 3 Grand Total COP's and CEPPT Trust $ 4,397,596.27 $ 16,781.15 $ 48,130.53 $ 16,781.15 $ 4,445,726.80 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.

Note 1: The three original funds for the Certificates of Participation 2002 Series A consist of construction funds which will be expended over the next few years, reserve funds which will guarantee the payment of lease payments, and a third fund for the disbursement of lease payments and initial delivery costs.

Note 2: The 2010 COP Funds are all for the Library construction, reserves to guarantee lease payments, and a lease payment fund for the life of the COP issue. The COI fund was closed in September 2010.

Note 3: The CEPPT IRS Section 115 Trust was established as an irrevocable trust dedicated to accumulate resources to fund the Town's unfunded liabilities related to pension and other post employment benefits.

Town of Los Gatos
Non-Treasury Restricted Fund Balances
September 30, 2024
3

ITEM NO. 2.

July 2024 $ 247,221.75
August 2024 $ 212,684.25
September 2024 $ 265,151.31
October 2024 $ -
November 2024 $ -
December 2024 $ -
January 2025 $ -
February 2025 $ -
March 2025 $ -
April 2025 $ -
May 2025 $ -
June 2025 $ -
$ 725,057.31
Town of Los Gatos
Statement of Interest Earned
September 30, 2024
4

ITEM NO. 2.

Original Issue Market Value Maturity Yield to Interest Interest Interest Days Deposit Par Original (Discount) Market Above (Under) Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Coupon Date Value Cost Premium Value Cost Interest Call Date or Call to Date Prior Yrs. Current FY Maturity Apple 037833DB3 Corporate Bond 2.90% 12/20/2022 1,300,000.00 1,228,591.00 (71,409.00) 1,270,451.00 41,860.00 6/21/2027 4.19% $ 65,137.22 $ 81,871.88 $ 13,498.59 994 Home Depot 437076BM3 Corporate Bond 3.00% 8/4/2022 1,000,000.00 991,960.00 (8,040.00) 985,910.00 (6,050.00) 1/1/2026 3.04% $ 49,750.00 $ 61,696.52 $ 8,155.29 458 US Treasury 912828ZW3 US Treasury Note 0.25% 8/9/2022 350,000.00 322,096.88 (27,903.12) 340,070.50 17,973.62 6/30/2025 3.16% $ 1,654.89 $ 19,915.08 $ 2,651.50 273 FFCB 3133EN5V8 Gov. Agency Debenture 4.13% 1/17/2023 236,000.00 239,174.20 3,174.20 238,846.16 (328.04) 1/11/2027 3.76% $ 14,440.25 $ 12,979.52 $ 2,253.05 833 US Treasury 91282CBT7 US Treasury Note 0.75% 9/30/2022 800,000.00 712,565.18 (87,434.82) 765,184.00 52,618.82 3/31/2026 4.14% $ 12,000.00 $ 54,221.52 $ 7,806.54 547 FFCB 3133ENP95 Gov. Agency Debenture 4.25% 9/30/2022 900,000.00 900,939.60 939.60 902,034.00 1,094.40 9/30/2025 4.14% $ 76,500.00 $ 66,415.88 $ 9,562.22 365 JP Morgan Chase 46625HRS1 Corporate Bond 3.20% 9/23/2022 500,000.00 474,660.00 (25,340.00) 492,615.00 17,955.00 3/15/2026 4.70% $ 27,644.44 $ 41,217.45 $ 5,869.98 531 FHLB 3135G05X7 Gov. Agency Debenture 0.38% 6/10/2022 1,200,000.00 1,102,952.40 (97,047.60) 1,161,132.00 58,179.60 8/25/2025 3.04% $ 9,937.50 $ 71,445.55 $ 8,752.32 329 US Treasury 912828ZL7 US Treasury Note 0.38% 4/12/2022 1,700,000.00 1,583,927.57 (116,072.43) 1,661,852.00 77,924.43 4/30/2025 2.72% $ 13,066.99 $ 98,544.63 $ 11,192.72 212 FHLB 3130AQF65 Gov. Agency Debenture 1.25% 11/30/2022 1,300,000.00 1,160,559.40 (139,440.60) 1,232,426.00 71,866.60 12/21/2026 4.15% $ 25,322.92 $ 80,116.59 $ 12,752.12 812 FHLB 3130APJH9 Gov. Agency Debenture 1.00% 1/17/2023 1,000,000.00 907,010.00 (92,990.00) 960,570.00 53,560.00 10/28/2026 4.17% $ 13,354.17 $ 50,234.10 $ 8,719.88 758 FFCB 3133EN5N6 Gov. Agency Debenture 4.00% 2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,718,445.00 11,713.00 1/6/2028 3.91% $ 95,955.56 $ 92,733.76 $ 16,794.30 1193 Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.38% 5/1/2023 750,000.00 689,032.50 (60,967.50) 724,057.50 35,025.00 9/23/2025 3.97% $ 3,921.87 $ 32,931.11 $ 7,111.88 358 American Honda 02665WED9 Corporate Bond 4.70% 5/11/2023 600,000.00 608,856.00 8,856.00 610,458.00 1,602.00 1/12/2028 4.34% $ 32,978.33 $ 29,982.05 $ 6,630.64 1199 US Treasury 91282CEF4 US Treasury Note 2.50% 6/9/2023 1,500,000.00 1,416,626.12 (83,373.88) 1,461,090.00 44,463.88 3/31/2027 4.09% $ 49,077.87 $ 62,956.31 $ 14,966.36 912 US Treasury 91282CGA3 US Treasury Note 4.00% 6/20/2023 2,100,000.00 2,080,558.59 (19,441.41) 2,103,444.00 22,885.41 12/15/2025 4.40% $ 82,852.46 $ 94,573.28 $ 23,140.27 441 Colgate-Palmolive 194162AR4 Corporate Bond 4.60% 7/14/2023 500,000.00 504,655.00 4,655.00 512,830.00 8,175.00 2/1/2028 4.37% $ 26,002.79 $ 21,195.52 $ 5,539.74 1219 FannieMae 3135G06G3 Gov. Agency Debenture 0.50% 7/14/2023 500,000.00 455,157.00 (44,843.00) 481,145.00 25,988.00 11/7/2025 4.63% $ 2,034.72 $ 21,047.01 $ 5,500.92 403 FFCB 3133EPQC2 Gov. Agency Debenture 4.63% 7/17/2023 500,000.00 501,957.50 1,957.50 507,785.00 5,827.50 7/17/2026 4.48% $ 23,125.00 $ 21,487.97 $ 5,664.45 655 FFCB 3133EPBM6 Gov. Agency Debenture 4.13% 7/14/2023 600,000.00 596,220.00 (3,780.00) 607,782.00 11,562.00 8/23/2027 4.29% $ 27,431.25 $ 24,754.94 $ 6,470.04 1057 PNC Bank 69353RFJ2 Corporate Bond 3.25% 7/25/2023 1,000,000.00 921,490.00 (78,510.00) 967,220.00 45,730.00 12/23/2027 5.23% $ 32,229.17 $ 46,970.90 $ 12,672.50 1179 US Treasury 91282CFU0 US Treasury Note 4.13% 7/31/2023 1,300,000.00 1,290,660.60 (9,339.40) 1,320,163.00 29,502.40 10/31/2027 4.31% $ 40,218.75 $ 51,232.08 $ 14,069.71 1126 Toyota Motor Credit 89236TKL8 Corporate Bond 5.45% 8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,666,928.00 49,760.00 11/10/2027 5.16% $ 61,766.67 $ 70,599.88 $ 20,952.22 1136 US Treasury 912810FE3 US Treasury Note 5.50% 10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,287,096.00 48,888.86 8/15/2028 4.76% $ 57,211.96 $ 43,179.27 $ 14,658.64 1415 Pepsico Inc 713448DF2 Corporate Bond 2.85% 10/16/2023 1,000,000.00 947,570.00 (52,430.00) 985,820.00 38,250.00 11/24/2025 5.24% $ 24,383.33 $ 37,712.66 $ 13,447.93 420 FFCB 3133EPUW3 Gov. Agency Debenture 4.75% 10/13/2023 1,000,000.00 994,338.00 (5,662.00) 1,020,070.00 25,732.00 9/1/2026 4.96% $ 41,958.33 $ 35,367.82 $ 12,466.82 701 Freddie Mac 3137EAEP0 Gov. Agency Debenture 1.50% 10/13/2023 1,000,000.00 951,540.00 (48,460.00) 988,910.00 37,370.00 2/12/2025 5.32% $ 12,458.33 $ 36,644.18 $ 12,916.72 135 US Treasury 91282CEW7 US Treasury Note 3.25% 10/16/2023 1,000,000.00 950,039.06 (49,960.94) 991,290.00 41,250.94 6/30/2027 4.73% $ 22,961.96 $ 32,499.52 $ 11,588.98 1003 US Treasury 91282CEN7 US Treasury Note 2.75% 10/31/2023 1,300,000.00 1,214,336.39 (85,663.61) 1,272,934.00 58,597.61 4/30/2027 4.82% $ 17,875.00 $ 40,101.59 $ 15,182.50 942 US Treasury 912828YV6 US Treasury Note 1.50% 11/15/2023 700,000.00 673,667.97 (26,332.03) 696,206.00 22,538.03 11/30/2024 5.26% $ 5,680.33 $ 22,316.65 $ 9,004.97 61 US Treasury 91282CAB7 US Treasury Note 0.25% 11/15/2023 675,000.00 623,900.39 (51,099.61) 654,081.75 30,181.36 7/31/2025 4.92% $ 1,196.84 $ 19,725.12 $ 7,959.26 304 US Treasury 91282CGU9 US Treasury Note 3.88% 11/30/2023 1,000,000.00 983,515.62 (16,484.38) 997,570.00 14,054.38 3/31/2025 5.17% $ 32,291.67 $ 29,822.81 $ 12,881.22 182 US Treasury 91282CCH2 US Treasury Note 1.25% 12/21/2023 900,000.00 798,647.55 (101,352.45) 826,560.00 27,912.45 6/30/2028 3.99% $ 5,930.71 $ 17,690.14 $ 8,476.53 1369 FNMA 3135G0Q22 Gov. Agency Debenture 1.88% 12/21/2023 900,000.00 845,676.00 (54,324.00) 868,248.00 22,572.00 9/24/2026 4.22% $ 12,796.88 $ 19,224.14 $ 9,211.57 724 US Treasury 91282CFB2 US Treasury Note 2.75% 1/2/2024 1,000,000.00 960,354.91 (39,645.09) 977,420.00 17,065.09 7/31/2027 3.95% $ 15,917.12 $ 19,025.75 $ 9,724.27 1034 US Treasury 91282CHE4 US Treasury Note 3.63% 1/17/2024 1,800,000.00 1,775,185.72 (24,814.28) 1,802,034.00 26,848.28 5/31/2028 3.97% $ 24,067.63 $ 32,061.96 $ 17,876.97 1339 JP Morgan Chase 46647PDG8 Corporate Bond 4.85% 2/1/2024 1,400,000.00 1,396,528.00 (3,472.00) 1,422,722.00 26,194.00 7/25/2027 4.93% $ 32,825.10 $ 28,319.94 $ 17,369.56 1028 US Bancorp 91159HJF8 Corporate Bond 4.55% 2/5/2024 1,000,000.00 989,200.00 (10,800.00) 1,007,580.00 18,380.00 7/22/2027 4.89% $ 21,097.67 $ 19,440.46 $ 12,250.15 1025 Treasury 91282CHB0 US Treasury Note 3.63% 2/23/2024 1,175,000.00 1,151,962.92 (23,037.08) 1,173,026.00 21,063.08 5/15/2026 4.56% $ 9,595.30 $ 18,568.45 $ 13,346.07 592 FHLB 3130AXB31 Gov. Agency Debenture 4.88% 2/27/2024 1,000,000.00 1,003,060.00 3,060.00 1,015,900.00 12,840.00 3/13/2026 4.72% $ 27,354.17 $ 16,052.33 $ 11,909.79 529 FFCB 3133EP5U5 Gov. Agency Debenture 4.13% 3/28/2024 1,700,000.00 1,687,981.00 (12,019.00) 1,735,462.00 47,481.00 3/20/2029 4.28% $ 33,504.17 $ 18,681.03 $ 18,283.56 1632 US Treasury 9128285M8 US Treasury Note 3.13% 4/30/2024 1,200,000.00 1,123,832.14 (76,167.86) 1,178,532.00 54,699.86 11/15/2028 4.69% $ 1,545.34 $ 9,066.06 $ 13,673.41 1507 Cisco Systems 17275RBR2 Corporate Bond 4.85% 5/15/2024 1,000,000.00 999,130.00 (870.00) 1,033,800.00 34,670.00 1/26/2029 4.87% $ 13,606.94 $ 6,135.64 $ 12,271.27 1579 Home Depot 437076CW0 Corporate Bond 4.90% 5/17/2024 1,000,000.00 1,001,790.00 1,790.00 1,035,310.00 33,520.00 4,355.56 4/15/2029 4.86% $ (4,355.56) $ 5,862.95 $ 12,258.89 1658 Treasury 91282CJR3 US Treasury Note 3.75% 5/31/2024 1,200,000.00 1,154,629.02 (45,370.98) 1,207,452.00 52,822.98 12/31/2028 4.68% $ 3,708.79 $ 4,511.24 $ 13,834.48 1553 American Honda 02665WEY3 Corporate Bond 4.95% 6/27/2024 1,000,000.00 995,640.00 (4,360.00) 1,009,030.00 13,390.00 1/9/2026 5.25% $ 1,787.50 $ 430.16 $ 13,191.72 466 FHLB 3130B1BT3 Gov. Agency Debenture 4.88% 7/2/2024 1,150,000.00 1,150,966.00 966.00 1,171,148.50 20,182.50 8,720.83 6/12/2026 4.82% $ (8,720.83) $ - $ 13,701.18 620 Citibank 17325FBK3 Corporate Bond 4.84% 8/15/2024 1,250,000.00 1,263,062.50 13,062.50 1,278,337.50 15,275.00 1,511.88 7/6/2029 4.60% $ (1,511.88) $ - $ 7,285.07 1740 FNMA 3135G05Y5 Gov. Agency Debenture 0.75% 9/10/2024 1,100,000.00 1,010,724.00 (89,276.00) 1,010,977.00 253.00 3,483.33 10/8/2027 3.56% $ (3,483.33) $ - $ 2,042.01 1103 Subtotal $ 51,586,000.00 $ 49,899,033.87 $ (1,686,966.13) $ 51,339,954.91 $ 1,440,921.04 $ 18,071.60 $ 1,188,086.29 $ 1,721,563.43 $ 547,540.80 BNY MM Money Market 254,324.64 254,324.64 0.00 0.00% 1
LAIF State Investment Pool 11,702,445.78 11,726,565.50 24,119.72 4.58% 171,603.38 1 61,855,804.29 $63,320,845.05 $1,465,040.76 $18,071.60 $ 1,188,086.29 $ 1,721,563.43 $ 719,144.18 Matured Assets
FNMA 3135G0V75 Gov. Agency Debenture 1.75% 10/17/2019 1,100,000.00 1,105,833.30 5,833.30 7/2/2024 1.63% $ 90,956.25 $ 84,780.33 $ 98.70 Honeywell Int'l. 438516BW5 Corporate Bond 2.30% 11/20/2019 1,000,000.00 1,014,660.00 14,660.00 8/15/2024 1.64% $ 108,483.33 $ 91,844.87 $ 2,508.83 FFCB 3133EKQA7 Gov. Agency Debenture 2.08% 10/21/2019 1,000,000.00 1,019,780.00 19,780.00 9/10/2024 1.66% $ 101,631.11 $ 78,691.92 $ 3,305.61 Total Investments "Matured" $ 5,913.13
Total Interest FY 24_25 Matured and Current $ 725,057.31 Maturity Profile Amount Percent
0-1 year $ 19,788,343.35 32%
1-2 years $11,460,395.19 19%
2-3 years $11,904,315.08 19%
3-5 years $ 18,702,750.67 30%
$61,855,804.29 100%
Town of Los Gatos
Investment Schedule
September 30, 2024
5

ITEM NO. 2.

Date Cusip/Id Description Transaction Type
Settlement
Date Par Coupon Maturity Date Price Principal Interest
Transaction
Total
9/3/2024 194162AR4
COLGATE-PALMOLIVE CO 4.6% 01MAR2028
(CALLABLE 01FEB28) BOND INTEREST 9/1/2024 500,000.00 4.60% 3/1/2028 - - 11,500.00 11,500.00 9/3/2024 3133EPUW3
FEDERAL FARM CREDIT BANK 4.75%
01SEP2026 BOND INTEREST 9/1/2024 1,000,000.00 4.75% 9/1/2026 - - 23,750.00 23,750.00 9/4/2024 Cash-USD Cash-USD

SHORT TERM INVESTMENT
FUND INCOME 9/4/2024 561.92 0.00% 100.00 - - 561.92
9/10/2024 3135G05Y5 FANNIE MAE 0.75% 08OCT2027 FI-PUR 9/10/2024 1,100,000.00 0.75% 10/8/2027 91.88 1,010,724.00 3,483.33 1,014,207.33 9/10/2024 3133EKQA7
FEDERAL FARM CREDIT BANK 2.08%
10SEP2024 BOND INTEREST 9/10/2024 1,000,000.00 2.08% 9/10/2024 - - 10,400.00 10,400.00 9/10/2024 3133EKQA7
FEDERAL FARM CREDIT BANK 2.08%
10SEP2024 REDEMPTION 9/10/2024 1,000,000.00 2.08% 9/10/2024 100.00 1,000,000.00 - 1,000,000.00 9/12/2024 037833DB3
APPLE INC 2.9% 12SEP2027 (CALLABLE
12JUN27) BOND INTEREST 9/12/2024 1,300,000.00 2.90% 9/12/2027 - - 18,850.00 18,850.00 9/13/2024 3130AXB31
FEDERAL HOME LOAN BANK 4.875%
13MAR2026 BOND INTEREST 9/13/2024 1,000,000.00 4.88% 3/13/2026 - - 24,375.00 24,375.00 9/20/2024 3133EP5U5
FEDERAL FARM CREDIT BANK 4.125%
20MAR2029 BOND INTEREST 9/20/2024 1,700,000 4.13% 3/20/2029 - - 35,062.50 35,062.50 9/23/2024 3137EAEX3 FREDDIE MAC 0.375% 23SEP2025 BOND INTEREST 9/23/2024 750,000 0.38% 9/23/2025 - - 1,406.25 1,406.25 9/24/2024 3135G0Q22 FANNIE MAE 1.875% 24SEP2026 BOND INTEREST 9/24/2024 900,000.0 1.88% 9/24/2026 - - 8,437.50 8,437.50 9/30/2024 91282CBT7 USA TREASURY 0.75% 31MAR2026 BOND INTEREST 9/30/2024 800,000 0.75% 3/31/2026 - - 3,000.00 3,000.00 9/30/2024 91282CGU9 USA TREASURY 3.875% 31MAR2025 BOND INTEREST 9/30/2024 1,000,000 3.88% 3/31/2025 - - 19,375.00 19,375.00 9/30/2024 91282CEF4 USA TREASURY 2.5% 31MAR2027 BOND INTEREST 9/30/2024 1,500,000 2.50% 3/31/2027 - - 18,750.00 18,750.00 9/30/2024 3133ENP95
FEDERAL FARM CREDIT BANK 4.25%
30SEP2025 BOND INTEREST 9/30/2024 900,000 4.25% 9/30/2025 - - 19,125.00 19,125.00 Town of Los Gatos
Investment Transaction Detail
September 30, 2024
6

ITEM NO. 2.

Security Description Maturity Date Par/Shares S&P Rating Moody Rating Insight ESG Rating Environment Social Governance AMERICAN HONDA FINANCE 4.95% 09JAN2026 1/9/2026 $ 1,000,000 A- A3 3 3 3 3 PEPSICO INC 2.85% 24FEB2026 (CALLABLE 24NOV25) 2/24/2026 $ 1,000,000 A+ A1 2 2 2 3 HOME DEPOT INC. 3% 01APR2026 (CALLABLE 01JAN2026) 46113 $ 1,000,000 A A2 3 3 2 3 JPMORGAN CHASE & CO 3.2 15JUN2026 (CALLABLE 15MAR26) 46188 $ 500,000 A- A1 3 1 3 4 APPLE INC. 2.9% 12SEP2027 (CALLABLE 12JUN27) 9/12/2027 $ 1,300,000 AA+ Aaa 5 1 4 5 TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 $ 1,600,000 A+ A1 3 2 3 4 AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 $ 600,000 A- A3 3 3 3 3 PNC BANK NA 3.25% 22JAN2028 (CALLABLE 01 FEB28) 1/22/2028 $ 1,000,000 A A2 3 2 3 3 COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28) 3/1/2028 $ 500,000 A+ Aa3 3 2 3 3 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 7/222028 $ 1,000,000 A A3 4 3 4 4 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL28) 7/25/2028 $ 1,400,000 A- A1 3 1 3 4 CISCO INC. 4.85% 26FEB2029 (CALLABLE 26JAN2029) 2/26/2029 $ 1,000,000 AA- A1 2 1 4 3 HOME DEPOT INC. 4.9% 15APR2029 (CALLABLE 15MAR2029) 47223 $ 1,000,000 A A2 3 3 2 3 CITIBANK 4.838% 06AUG2029 (CALLABLE 06JUL2029) 8/6/2029 $ 1,250,000 A+ Aa3 3 1 3 4 Total/Average $ 14,150,000 3.1 2.0 3.0 3.5
*ESG ratings are from 1 to 5, with 1 as the highest rating and 5 as the lowest. All ratings are weighted by industry rankings, based on the importance of the category within the individual industry.

Town of Los Gatos
Insight ESG Ratings as of September 30, 2024
7

ITEM NO. 2.

Fund Schedule
Fund
Number Fund Description
Current
Revenue
Current
Expenditure
Transfer
In
Transfer
Out

GENERAL FUND
Non-Spendable:

Loans Receivable 159,000 - - - - - 159,000
Restricted Fund Balances:

Pension 1,400,163 - - - - - 1,400,163
Land Held for Resale 44,338 - - - - - 44,338
Committed Fund Balances:

Budget Stabilization 6,129,774 - - - - - 6,129,774
Catastrophic 6,129,775 - - - - - 6,129,775
Pension/OPEB 300,000 - - - - - 300,000
Measure G District Sales Tax 590,581 - - - - - 590,581
Assigned Fund Balances:

Open Space 410,000 - - - - - 410,000
Sustainability 140,553 - - - - - 140,553
Capital/Special Projects 10,359,577 - - - - - 10,359,577 Carryover Encumbrances 37,698 - - - - - 37,698
Compensated Absences 1,580,623 - - - - - 1,580,623
ERAF Risk Reserve 689,608 - - - - - 689,608
Council Priorities - Economic Recovery 1,556,614 - - - - - 1,556,614 Unassigned Fund Balances:
111 Other Unassigned Fund Balance Reserve (Pre YE distribution) 1,533,771 (1,548,527) 1,742,198 (3,569,489) - - (1,842,047) General Fund Total 31,062,075 (1,548,527) 1,742,198 (3,569,489) - - 27,686,257 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries.

September 2024
Prior Year
Carryforward
7/1/2024*
Increase/
(Decrease)
July - August
Estimated Fund
Balance
9/30/2024*
8

ITEM NO. 2.

Fund Schedule
Fund
Number Fund Description
Current
Revenue
Current
Expenditure
Transfer
In
Transfer
Out

SPECIAL REVENUE
211/212 CDBG 166,653 - - - - - 166,653
222 Urban Runoff (NPDES) 754,134 (17,885) 13,641 (20,024) - - 729,866 231-236 Landscape & Lighting Districts 182,625 (1,603) - (235) - - 180,787 251 Los Gatos Theatre 171,035 115,212 9,922 (8,990) - - 287,179 711-716 Library Trusts 556,849 (3,314) 60,000 (2,395) - - 611,140 Special Revenue Total 1,831,296 92,410 83,563 (31,644) - - 1,975,625

CAPITAL PROJECTS
411 GFAR - General Fund Appropriated Reserve 20,253,300 118,516 303,818 (463,141) - - 20,212,493 412 Community Center Development 866,281 - - - - - 866,281 421 Grant Funded Projects (2,563,503) - 31,486 (312,750) - - (2,844,767) 461-463 Storm Basin Projects 3,531,248 11,578 - - - - 3,542,826 471 Traffic Mitigation Projects 509,491 - - - - - 509,491 472 Utility Undergrounding Projects 3,584,251 2,317 - - - - 3,586,568 481 Gas Tax Projects 1,928,167 90,154 161,899 - - - 2,180,220 Capital Projects Total 28,109,235 222,565 497,203 (775,891) - - 28,053,112

INTERNAL SERVICE FUNDS
611 Town General Liability 177,876 (1,321,181) - (5,797) - - (1,149,102) 612 Workers Compensation 586,246 (946,880) 29,346 357,543 - - 26,255 621 Information Technology 2,523,347 (372,990) 4,617 (9,125) - - 2,145,849 631 Vehicle & Equipment Replacement 3,286,552 (54,492) 81 (128,332) - - 3,103,809 633 Facility Maintenance 960,526 (30,111) 24,836 (124,632) - - 830,619 Internal Service Funds Total 7,534,547 (2,725,654) 58,880 89,657 - - 4,957,430 Trust/Agency
942 RDA Successor Agency (4,632,040) (1,711,616) - (1,879) - - (6,345,535) Trust/Agency Fund Total (4,632,040) (1,711,616) - (1,879) - - (6,345,535) Total Town 63,905,113 (5,670,822) 2,381,844 (4,289,246) - - 56,326,889 * Interfund transfers and ARPA funding allocation to be performed as part of the fiscal year end closing entries.

Deposit Accounts of Interest:
111-23541 General Plan Update deposit account balance $410,633.11 111-23521 BMP Housing deposit account balance $3,923,342.78 Prior Year
Carryforward
7/1/2024*
Increase/
(Decrease)
July - August
September 2024 Estimated Fund
Balance
9/30/2024*
9

ITEM NO. 2.

PREPARED BY: Holly Young
Senior Management Analyst
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: 11/19/2024
ITEM NO: 3
DATE: October 17, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Four-and-a-Half-Year Agreement with ECS Imaging, Inc. for Laserfiche Software Maintenance, Support, and Scanning Services in a Total Amount Not to Exceed $315,000 RECOMMENDATION:

Authorize the Town Manager to execute a four-and-a-half-year agreement with ECS Imaging, Inc. for Laserfiche software maintenance, support, and scanning services in a total amount not to exceed $315,000.

BACKGROUND:

The Town began using Laserfiche electronic management software, scanners, consulting support, and offsite scanning services in 2008. Laserfiche helps the Town manage and organize paper documents by converting them into digital files. Laserfiche also allows users to search for and locate information quickly and brings together digital files from multiple locations into one central location.

Laserfiche has improved the way the Town stores and retrieves documents, increasing the efficiency of information retrieval internally for all Town Departments. Laserfiche has also made it easier for the public to access Town documents such as ordinances, resolutions, and building plans through the Town’s website, enhancing transparency.

Laserfiche sells its product through approved and licensed Solution Providers of Record, who are responsible for supporting and servicing the accounts listed under their license. ECS Imaging is the current Solution Provider of Record for the Town’s Laserfiche software system.

ITEM NO. 3.

PAGE 2 OF 3
SUBJECT: ECS Imaging, Inc. Agreement
DATE: October 17, 2024
According to Laserfiche’s policy, only the Solution Provider of Record can offer support and sell additional licenses or services. As the Solution Provider of Record, all add-on purchases to Laserfiche software are to be purchased and implemented through ECS Imaging. Other solution providers would not be able to purchase add-on licenses or provide support to the Town. A letter from ECS Imaging explaining this is attached as Attachment 1. The Town Attorney has reviewed and approved a Sole Source Provider Memorandum for ECS Imaging, Inc. (Attachment 2).

ECS Imaging is the largest Laserfiche provider in the Western United States and has extensive experience working with local government municipalities throughout California and Santa Clara County.

The Town’s current five-year agreement with ECS Imaging expires on December 31, 2024 (Attachment 3).

DISCUSSION:

To continue using the Town’s existing Laserfiche software licenses, support, and scanning services, a new contract is needed with ECS Imaging, Inc.

ECS Imaging’s services include technical support; on-site/remote hours for upgrades, troubleshooting, training, workflow, and forms; remote desktop assistance; no-cost annual customer conference and quarterly webinar trainings; warranty administration; software licensing and maintenance; and scanning services.

The Town’s current five-year agreement with ECS Imaging aligns with the calendar year. To improve internal efficiency, staff recommends a four-and-a-half-year agreement with ECS Imaging (Attachment 4) to align the term of the agreement with the Town’s fiscal year.

There will be no increase in costs compared to the current agreement. The existing agreement is for a five-year term not to exceed $70,000 per year, for a total not to exceed $350,000. The proposed agreement is for a four-and-a-half-year term not to exceed $70,000 per year, for a total not to exceed $315,000.

CONCLUSION:

To maintain the Town’s existing Laserfiche services, staff recommends the Town Council authorize the Town Manager to execute the four-and-a-half-year agreement with ECS Imaging, Inc. for a total amount not to exceed $315,000.

ITEM NO. 3.

PAGE 3 OF 3
SUBJECT: ECS Imaging, Inc. Agreement
DATE: October 17, 2024
COORDINATION:

This report was coordinated with the Town Manager’s Office, Town Attorney’s Office, Community Development Department, Finance Department, and Information Technology Department.

FISCAL IMPACT:

The fiscal impact of the proposed agreement over the next four and a half years will not exceed $70,000 per year, for a total amount not to exceed $315,000 over the full term. The cost for these services for FY 2024/25 has been budgeted.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Solution Provider of Record Letter from ECS Imaging, Inc.

2. Sole Source Memorandum

3. Proposed Town/ECS Agreement

ITEM NO. 3.

Phone: 951-787-9768
[email protected]
www.ecsimaging.com
5905 Brockton Ave. Suite C
Riverside, California 92506
10/14/24
To whom it may concern,
This letter is to inform the Purchasing department that ECS Imaging, Inc. is the current Solution Provider of record for the Town of Los Gatos’s existing Laserfiche software system.

The policy from the Laserfiche manufacturer is that the current Solution Provider is the sole source responsible party to assist the customer. As the Solution Provider of record all add-on purchases to Laserfiche software are to be purchased and implemented through ECS Imaging. Other Solution Providers would not be able to purchase add-ons licenses or provide support. ECS is closely familiar with the existing implementation and user’s needs on a frequent basis. We have worked with the Town of Los Gatos departments extensively to continue to meet the specific needs of their Laserfiche implementation.

ECS is the largest Laserfiche implementer in the Western USA. We have been providing services to the County for many years and are committed to providing unmatched technical service under our contract.

As a reminder, ECS Imaging, Inc. service contract provides your organization with the following:

ECS Gold Priority Support:
▪ Tech Support – With 4 Hours Telephone Response
▪ Guaranteed On-site/Remote Hours for upgrades, troubleshooting, training, workflow & forms, ECS Customers are guaranteed a prepaid amount of on-site Gold Support hours per year. ▪ Remote Desktop Assistance
▪ Annual Customer Conference and Quarterly Webinar Trainings at no cost ▪ Monthly eNewsletters
▪ Warranty Administration- Hardware items purchased through ECS include warranty administration.

Laserfiche Software Assurance Plan (LSAP) provide through ECS Imaging, Inc.:
▪ Technical support through ECS’ tech team
▪ All licenses current and new provided through ECS
▪ Laserfiche Software Updates provided through ECS
▪ Laserfiche Support Websites
▪ Monthly User Newsletters
ECS Imaging, Inc. is always here to provide you with your technical needs and go above and beyond.

We appreciate your attention to this important policy. We thank you for choosing us for your Laserfiche support for current and upcoming needs. We appreciate your business and hope to support you for many years to come.

Sincerely,
Debbi Bodewin
ECS Imaging, Inc.

Chief Executive Officer
[email protected] x1109
ATTACHMENT 1 Page 27
ITEM NO. 3.

ITEM NO. 3.

ITEM NO. 3.

ECS Agreement for Services

AGREEMENT FOR CONSULTANT SERVICES WITH ECS IMAGING, INC.

THIS AGREEMENT is made and entered into on January 1, 2025, by and between TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and ECS Imaging, Inc. (“Consultant”), whose address is 5905 Brockton Avenue, Suite C, Riverside, CA 92506. This Agreement is made with reference to the following facts.

I. RECITALS

1.1 The Town desires to engage Consultant to provide software maintenance and support for Laserfiche software products. Consultant is the top solution provider in California for Laserfiche products. Consultant is familiar with all of the Laserfiche customization that spans almost every Town Department.

1.2 The Town desires to engage Consultant to provide Laserfiche annual maintenance, additional Laserfiche software licenses, software updates, scanners, scanning services, remote support, set-up and troubleshooting of the Laserfiche system, and significant document scanning projects.

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

1.4 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 the services as described in:
• Exhibit A: ECS Gold Priority Support Agreement
• Exhibit B: Quote for Software, Annual Maintenance and Licensing, and Services • Exhibit C: Scanning Services Quote

2.2 Term and Time of Performance. This contract will remain in effect from January 1, 2025, to June 30, 2029.

2.3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations. 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.

ATTACHMENT 3

ITEM NO. 3.

ECS Agreement for Services

2.5 Information/Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant under this Agreement are the Town’s property and shall be delivered to the Town upon the completion of Consultant's services or at the Town's written request. All reports, information, data, and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall not make any of 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 $70,000 per year for a total contract amount not to exceed $315,000, inclusive of all costs. Payment shall be based upon Town approval of each task.

2.7 Billing. Billing shall be monthly by invoice within thirty (30) days of the rendering of the service and shall be accompanied by a detailed explanation of the work performed by whom at what rate and on what date. Also, plans, specifications, documents or other pertinent materials shall be submitted for Town review, even if only in partial or draft form.

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

Invoices:

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

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

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

ITEM NO. 3.

ECS Agreement for Services

2.10 Independent Contractor. It is understood that the Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and not an agent or employee of the Town. As an independent contractor, he/she shall not obtain any rights to retirement benefits or other benefits which accrue to Town employee(s). With prior written consent, the Consultant may perform some obligations under this Agreement by subcontracting, but may not delegate ultimate responsibility for performance or assign or transfer interests under this Agreement. Consultant agrees to 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.

ITEM NO. 3.

ECS Agreement for Services

ii. Consultant agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/her and his/her staff to an amount not less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage. 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 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 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 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 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.

ITEM NO. 3.

ECS Agreement for Services

3.3 Workers’ Compensation. In addition to these policies, Consultant shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement. Further, Consultant shall ensure that all subcontractors employed by Consultant provide the required Workers' Compensation insurance for their respective employees.

3.4 Indemnification. The Consultant 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 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.

ITEM NO. 3.

ECS Agreement for Services

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

Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
ECS Imaging, Inc.
5905 Brockton Avenue, Suite C
Riverside, CA 92506
or personally delivered to Consultant to such address or such other address as Consultant designates in writing to Town.

4.7 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the terms and conditions of this Agreement in respect of the Products or Services and any attachments to this Agreement, then the terms and conditions of this Agreement shall prevail over attachments or other writings.

4.8 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Consultant. No terms, conditions, understandings or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party.

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

Town of Los Gatos by:

Chris Constantin, Town Manager
Recommended by:

Sai Kim, Chief Technology Officer
Consultant by:

Consultant Printed Name and Title
Approved as to Form:

Gabrielle Whelan, Town Attorney
Attest:

Wendy Wood, CMC, Town Clerk

ITEM NO. 3.

ECS GOLD PRIORITY SUPPORT AGREEMENT - TERMS AND CONDITIONS This ECS Gold Priority Support Agreement (the “Support Agreement”) is incorporated by this reference in the agreement to which it is attached (the “Master Agreement”. Products covered by this Support Agreement (“Products”) are any item or group of items supplied by ECS which are set forth in the Master Agreement or any corresponding ECS invoice for support services (each an “Invoice”). Unless specified differently, defined terms herein shall have the same meaning as attributed to them in the Master Agreement. ECS Imaging, Inc. (“ECS”), a Value-Added Reseller of Laserfiche, and the Client agree to be governed by this Support Agreement relative to the software and/or hardware maintenance services (“Service” or “Services”) which ECS will provide relative to the Products. The terms and provisions in this Support Agreement shall control over any inconsistent terms or provisions in the Master Agreement. 1) Software Maintenance / Gold Priority Support Services: Based on the software provided as part of the Master Agreement or applicable Invoice, ECS will supply the following software maintenance/support services:
(a) ECS shall provide all necessary telephone support for reporting and resolving problems with the software products covered by this Support Agreement, and shall be available to receive notification by the Client of any software problem. The Client must provide adequate information and documentation to enable ECS to recreate the reported problem. If it is determined that there is no problem with the software products, ECS will so inform the Client and, in such case, ECS reserves the right to charge the Client for the services provided at ECS's then current standard rates plus reasonable associated expenses. Notwithstanding the provisions of this section, ECS makes no warranties that the maintenance/support provided hereunder will be successful in resolving any problems or in diagnosing faults.
(b) Service is available by calling 877-790-1600 or via E-mail at [email protected] during Regular Business Hours, defined as the hours between 7:30 a.m. and 5:00 p.m. PST, Monday through Friday (excluding ECS company holidays). ECS agrees to use reasonable efforts to respond to the Client's service request within four (4) hours of receipt of notification. ECS shall first attempt to diagnose the reported problem via telephone and/or e-mail, if considered appropriate, shall attempt to resolve the reported problem by requesting that the Client perform any required/standard operational maintenance or simple adjustments which the Client can reasonably be expected to conduct. If the reported problem is not resolved via telephone and/or e-mail, with client approval ECS will remote into the Client’s system.
(c) The Client has purchased a pre-paid minimum of 5 hours or more, Gold Priority Support Hours per year at $175/hour. Gold Priority Support Hours will be debited when ECS performs remote desktop support, on-site support, on-site and remote upgrades, and onsite training. In addition, most services offered by ECS are included in Gold Priority Support including Laserfiche tech support, installations, configurations of workflow and forms, and integration services are included. When Gold Priority Support Hours are used for on-site activities, ECS will debit a minimum of two to twenty-four hours from the Gold Priority Support Agreement based on the travel time of the support engineer or trainer. Scheduled After-Hours Support, defined as any time-period outside of ECS’s Regular Business Hours, is available at the discretion of ECS. The Client will be debited double the total number of Gold Priority Support Hours used for After-Hours Support. Gold Priority Support Hours expire one year from the annual renewal date and do not roll-over to the next year period. Gold Priority Support services cannot be used for Professional Services for the development of brand new Laserfiche implementations, initial data conversions, or major software development services. If insufficient Gold Priority Support hours are available, you will be asked to purchase more at that time and/or increase your annual Gold Priority Support Hours. 2) Hardware Maintenance/Support Services: If applicable based on the above-described Products, ECS will supply the following hardware maintenance/support services:
(a) Hardware maintenance will be covered if such hardware is covered by the manufacturer’s warranty and the warranty is maintained through ECS.
3) Charges: ECS will invoice Client for the total software/hardware maintenance/support services cost, including any applicable taxes.

Client agrees to remit complete payment for such invoice in advance of the renewal date indicated. An interest payment of 1.5% compounded monthly and any applicable software maintenance reinstatement fees imposed by the software manufacturer shall be added to any such invoices not paid by the renewal date specified on the Master Agreement or Invoice. 4) Client Responsibility: Client is responsible for:
(a) Notifying ECS in advance of any material changes to the supported Products components, including, but not limited to, the system's network, server/workstation hardware, operating system or security configuration. (b) Having a valid backup of data at all times to maintain original operating system, data and application software. (c) Promptly notifying ECS of any need for service and making product(s) available to ECS engineers. (d) Running diagnostic tests on all non-supported system components (network, server/workstation hardware, operating system or security configuration) before having a product serviced under this Support Agreement. 5) Limitations of Service: Maintenance/support services provided under this Support Agreement do not include:
(a) Cost of bringing product(s) to operational status prior to placing them under maintenance. (b) Costs related to the resolution of software problems caused by unapproved changes to the supported system's network, server/workstation hardware, operating system or security configuration. (c) Repair of damage caused by; accidents, natural disaster, improper use, damage during transportation/relocation by Client, work performed on software/hardware by personnel other than ECS employees/subcontractors, causes beyond ECS 's control. (d) Furnishing consumable supplies or accessories as specified by the manufacturer. (e) Hardware with missing or altered serial numbers.

EXHIBIT A

ITEM NO. 3.

(f) Repair of damage or increase in service time caused by the use of the product for purpose other than for which it was designed or beyond the manufacturer's specifications.

If services are required due to the above causes, ECS will provide services at ECS's then current standard service rates. 6) Term: This Support Agreement shall be in effect beginning January 1, 2025 – June 30, 2029, unless sooner terminated as provided in Section 7 of this Support Agreement.
7) Termination: Client may terminate this Support Agreement for any reason with fifteen (15) days written notice prior to the annual anniversary. Client may also terminate this Support Agreement if any material agreement or obligation contained or referred to in the Support Agreement has been breached by ECS, provided that Client has given ECS notice of such breach and there has been a failure to cure such breach, if curable, within fifteen (15) days after receipt of such notice. Unless such breach has been cured, termination shall be effective fifteen (15) days after receipt of such notice, and shall be without prejudice to any other right or remedy to which Client may be entitled either at law, in equity, or otherwise, including, without limitation, under this Support Agreement, may terminate this Support Agreement at any time for any reason with fifteen (15) days written notice. Upon terminating the Support Agreement, ECS will issue a prorated refund of any remaining prepaid Support Agreement coverage. The refund amount will be for the ECS Gold Priority Support Hours only and will not include prepaid, non-refundable maintenance/support fees paid to the software manufacturer(s) or third-party hardware service provider(s).

8) Rate Changes: The Gold Priority Support rates stated within this Support Agreement will not change for a period of one year. All rates are adjustable for Gold Priority Support coverage periods after one year from the annual renewal date. 9) Limitation of Liability: Client must provide ECS with notice of claims of damage, improper service, or lawsuit within thirty (30) days of service. ECS shall not be liable for performance delays or for nonperformance due to causes beyond its reasonable control. For any material breach of this Support Agreement by ECS, Client's remedy and ECS's liability shall be limited to a refund of related maintenance/support fees paid during the period of breach, up to a maximum of twelve (12) months. The remedies provided herein are Client's sole and exclusive remedies. In no event will ECS be liable for special, punitive, incidental, or consequential damages, whether based in contract, tort, or otherwise, including, without limitation, claims for loss or corruption of data or lost profit. 10) Binding Effect: Subject to any prohibition against assignment contained herein, the within Support Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of the parties hereto. 11) Governing Law - Venue: This Support Agreement shall be governed by and construed in accordance with the laws of the State of California. It shall be deemed to have been made and entered into in the Town of Los Gatos/Santa Clara County, State of California, and all legal actions or arbitrations pertaining thereto shall occur with regard to such specification of venue. 12) Professional Services: ECS provides additional professional services not defined, or covered under the Gold Priority Support scope of Services. If the client chooses, these services will be provided by ECS at the rate of $225 per hour and can be billed in milestones. 13) Acceptance: This Support Agreement is deemed accepted by and binding upon Client by virtue of any of the following: (i) Client’s execution of the Master Agreement; or (ii) ECS receiving a Client generated purchase order at any time during the period specified for any Services to be performed by ECS; or (iii) Client availing itself of the Services to be provided hereunder.

ITEM NO. 3.

Estimate
Date
11/30/2024
Estimate #
12704
Name/Address
Town of Los Gatos
Accounts Payable
110 East Main Street
Los Gatos, Ca 95030
Ship To
Town of Los Gatos
[email protected]
[email protected];
[email protected]
ECS Imaging, Inc.
5905 Brockton Ave. Suite C
Riverside, CA 92506-2416
(951)-787-8768
(951)-787-0831 fax
P.O. No.

Annual Renewal
Terms
Net 30
Due Date
12/30/2024
Rep
Pete
Phone
925-586-7549
Standard Processing Fee Added to all Credit Card Payments* Total
Subtotal
Sales Tax (9.0%)
Description Qty Rate Total
12/31/2024-06/30/2026
LF Rio User (25-49) LSAP (Prorated 18 Months @ $207/ Yr) 40 310.50 12,420.00 LF Rio Public Portal for 2 LF Servers LSAP (Prorated 18 Months @ $10,000/ Yr)
1 15,000.00 15,000.00
LF Rio Quick Fields Agent LSAP (Prorated 18 Months @ $2,000/ Yr)
1 3,000.00 3,000.00
LF Rio Quick Fields-Core, Includes Quick Fields, Bar Code, Real-Time Lookup, Zone OCR, Pattern Matching LSAP (Prorated 18 Months @ $1,000/ Yr)
1 1,500.00 1,500.00
Laserfiche 5% Rio License Pricing Increase 1 1,596.00 1,596.00 ECS Gold Priority Support consists of 10 hours of on-line or on-site support time, unlimited phone support, and a 4 hour response time for most services offered by ECS including Laserfiche tech support, installations, configurations of workflow and forms, and integration services. Support beginning 12/31/2024 and expiring 06/30/2026.

An additional 5 hours of Professional Services for version updates, during normal business hours, is included. Additional on-line or on-site support will be billed at your current hourly support rate.

Minimum on-site time is calculated at 2 hours. ECS may allow planned after hours support in rare circumstances. In these circumstances Priority Support will be billed at double the hourly rate.
1 1,750.00 1,750.00
Omnia Contract Discount 1 -1,093.24 -1,093.24

EXHIBIT B

ITEM NO. 3.

Estimate
Date
11/30/2024
Estimate #
12704
Name/Address
Town of Los Gatos
Accounts Payable
110 East Main Street
Los Gatos, Ca 95030
Ship To
Town of Los Gatos
[email protected]
[email protected];
[email protected]
ECS Imaging, Inc.
5905 Brockton Ave. Suite C
Riverside, CA 92506-2416
(951)-787-8768
(951)-787-0831 fax
P.O. No.

Annual Renewal
Terms
Net 30
Due Date
12/30/2024
Rep
Pete
Phone
925-586-7549
Standard Processing Fee Added to all Credit Card Payments* Total
Subtotal
Sales Tax (9.0%)
Description Qty Rate Total
**Your organization LSAP's expire on 12/30/2024 - Laserfiche imposes a 10% reinstatement fee for each month of an expired LSAP - support site access will be suspended if payment is not received by your expiration date**

0.00 0.00
Subtotal: $34,172.76
06/30/2026-06/29/2027
LF Rio User (25-49) LSAP 40 217.35 8,694.00
LF Rio Public Portal for 2 LF Servers LSAP 1 10,500.00 10,500.00 LF Rio Quick Fields Agent LSAP 1 2,100.00 2,100.00
LF Rio Quick Fields-Core, Includes Quick Fields, Bar Code, Real-Time Lookup, Zone OCR, Pattern Matching LSAP
1 1,050.00 1,050.00
ECS Gold Priority Support consists of 10 hours of on-line or on-site support time, unlimited phone support, and a 4 hour response time for most services offered by ECS including Laserfiche tech support, installations, configurations of workflow and forms, and integration services. Support beginning 06/30/2026 and expiring 06/29/2027.

An additional 5 hours of Professional Services for version updates, during normal business hours, is included. Additional on-line or on-site support will be billed at your current hourly support rate.

Minimum on-site time is calculated at 2 hours. ECS may allow planned after hours support in rare circumstances. In these circumstances Priority Support will be billed at double the hourly rate.
1 1,750.00 1,750.00
Omnia Contract Discount -746.91 -746.91

ITEM NO. 3.

Estimate
Date
11/30/2024
Estimate #
12704
Name/Address
Town of Los Gatos
Accounts Payable
110 East Main Street
Los Gatos, Ca 95030
Ship To
Town of Los Gatos
[email protected]
[email protected];
[email protected]
ECS Imaging, Inc.
5905 Brockton Ave. Suite C
Riverside, CA 92506-2416
(951)-787-8768
(951)-787-0831 fax
P.O. No.

Annual Renewal
Terms
Net 30
Due Date
12/30/2024
Rep
Pete
Phone
925-586-7549
Standard Processing Fee Added to all Credit Card Payments* Total
Subtotal
Sales Tax (9.0%)
Description Qty Rate Total
**Your organization LSAP's expire on 06/30/2026 - Laserfiche imposes a 10% reinstatement fee for each month of an expired LSAP - support site access will be suspended if payment is not received by your expiration date**

0.00 0.00
Subtotal: $ 23,347.09
06/30/2027-06/29/2028
LF Rio User (25-49) LSAP 40 217.35 8,694.00
LF Rio Public Portal for 2 LF Servers LSAP 1 10,500.00 10,500.00 LF Rio Quick Fields Agent LSAP 1 2,100.00 2,100.00
LF Rio Quick Fields-Core, Includes Quick Fields, Bar Code, Real-Time Lookup, Zone OCR, Pattern Matching LSAP
1 1,050.00 1,050.00
ECS Gold Priority Support consists of 10 hours of on-line or on-site support time, unlimited phone support, and a 4 hour response time for most services offered by ECS including Laserfiche tech support, installations, configurations of workflow and forms, and integration services. Support beginning 06/30/2027 and expiring 06/29/2028.

An additional 5 hours of Professional Services for version updates, during normal business hours, is included. Additional on-line or on-site support will be billed at your current hourly support rate.

Minimum on-site time is calculated at 2 hours. ECS may allow planned after hours support in rare circumstances. In these circumstances Priority Support will be billed at double the hourly rate.
1 1,750.00 1,750.00

ITEM NO. 3.

Estimate
Date
11/30/2024
Estimate #
12704
Name/Address
Town of Los Gatos
Accounts Payable
110 East Main Street
Los Gatos, Ca 95030
Ship To
Town of Los Gatos
[email protected]
[email protected];
[email protected]
ECS Imaging, Inc.
5905 Brockton Ave. Suite C
Riverside, CA 92506-2416
(951)-787-8768
(951)-787-0831 fax
P.O. No.

Annual Renewal
Terms
Net 30
Due Date
12/30/2024
Rep
Pete
Phone
925-586-7549
Standard Processing Fee Added to all Credit Card Payments* Total
Subtotal
Sales Tax (9.0%)
Description Qty Rate Total
Omnia Contract Discount -746.91 -746.91
**Your organization LSAP's expire on 06/30/2027 - Laserfiche imposes a 10% reinstatement fee for each month of an expired LSAP - support site access will be suspended if payment is not received by your expiration date**

0.00 0.00
Subtotal: $ 23,347.09
06/30/2028-06/29/2029
LF Rio User (25-49) LSAP 40 217.35 8,694.00
LF Rio Public Portal for 2 LF Servers LSAP 1 10,500.00 10,500.00 LF Rio Quick Fields Agent LSAP 1 2,100.00 2,100.00
LF Rio Quick Fields-Core, Includes Quick Fields, Bar Code, Real-Time Lookup, Zone OCR, Pattern Matching LSAP
1 1,050.00 1,050.00
ECS Gold Priority Support consists of 10 hours of on-line or on-site support time, unlimited phone support, and a 4 hour response time for most services offered by ECS including Laserfiche tech support, installations, configurations of workflow and forms, and integration services. Support beginning 06/30/2028 and expiring 06/29/2029.

An additional 5 hours of Professional Services for version updates, during normal business hours, is included. Additional on-line or on-site support will be billed at your current hourly support rate.

Minimum on-site time is calculated at 2 hours. ECS may allow planned after hours support in rare circumstances. In these circumstances Priority Support will be billed at double the hourly rate.
1 1,750.00 1,750.00

ITEM NO. 3.

Estimate
Date
11/30/2024
Estimate #
12704
Name/Address
Town of Los Gatos
Accounts Payable
110 East Main Street
Los Gatos, Ca 95030
Ship To
Town of Los Gatos
[email protected]
[email protected];
[email protected]
ECS Imaging, Inc.
5905 Brockton Ave. Suite C
Riverside, CA 92506-2416
(951)-787-8768
(951)-787-0831 fax
P.O. No.

Annual Renewal
Terms
Net 30
Due Date
12/30/2024
Rep
Pete
Phone
925-586-7549
Standard Processing Fee Added to all Credit Card Payments* Total
Subtotal
Sales Tax (9.0%)
Description Qty Rate Total
Omnia Contract Discount -746.91 -746.91
**Your organization LSAP's expire on 06/30/2028 - Laserfiche imposes a 10% reinstatement fee for each month of an expired LSAP - support site access will be suspended if payment is not received by your expiration date**

0.00 0.00
Subtotal: $23,347.09
All Software, Licenses and Updates will be downloaded from the Laserfiche website.

LSAP= LaserFiche Software Assurance Plan includes product updates and enhancements for 12 months.

0.00 0.00

$104,214.03
$104,214.03
$0.00

ITEM NO. 3.

Phone:
951-787-
8768
Fax: 951-
787-0831
Quote
Scanning
Quotation For Quote Info Q3 2024 v.1
Name: Date:

Company: Quote Number:

Phone: Valid Through
E-mail: Terms: Net 20
Account Manager: Pete Herschelman
Phone: (925) 586-7549
E-mail: [email protected]
Description of Product and Services
Scanning Services
SKU Unit Price Quantity Line Total
ECSS-REG-B&W $ 0.110 0.00 $ -
ECSS-ESIZE-B&W $ 1.250 0.00 $ -
ECSS-PICKUP $ 400.000 0.00 $ -
ECSS-PREP $ 35.000 0.00 $ -
ECSS-INDEX $ 35.000 0.00 $ -
ECSS-UPLOAD $ 65.000 0.00 $ -
Scanning Subtotal $ -
Special Terms
Subtotal $ -
Tax Rate 0.00% Tax $ -
Total $ -
Terms & Conditions:

Box/Doc Type Box Count Image Count Total Images
0 0
- - - -
Totals 0 0 -
o Payment Terms: Net 20 after each batch returned.
o Laserfiche Tiffs or PDFs in portable volumes to be attached to your Laserfiche system o ECS will train customer on how to load data onto LF Server during first delivery, if needed o Consulting of folder template and volume set ups included in project set up fee o Items will be placed back into original carrier (folder, sleeve, etc.) o Items will be delivered free of charge after being scanned o Items are scanned in order received. Any additional requests are subject to a charge o Scanning in Tiff images is 200-300dpi depending on need o Paper/Plans: Indexing included is 2 fields, up to 20 characters and Unique Document Name up to 20 characters each
o Microfiche: Indexing included is the name on the Sleeve o Microfilm: Indexing included is the name on the Cartridge o Images that have been fiched/filmed reverse have additional charge o All prices listed above are for estimating purposes only. Actual prices may vary o Typical upload fee is 5GB per volume max - ~66 B&W standard banker boxes , ~13 Color o Pick up / Delivery charges (pricing varies, based on location and quantity) o Changes in naming, templates or folders after files have been returned are subject to restructuring/reindexing fee
o OCRing can be done during scan process at no charge. Any verification time is $50.00/Hour o DVD Set = 1 Data DVD, 1 Plus Viewer DVD - Plus DVD has retrieval engine on DVD. Regular size documents fit approximately 90,000 images
o CD Set = 1 Data CD, 1 Plus Viewer CD - Plus CD has retrieval engine on CD. Regular size rolls fit approximately 10,000 images
o Boxes may be destroyed at the customer’s request at a cost of $10.00 a box. A Destruction Certificate will be provided
o While documents are at ECS, we can provide an electronic copy for up to 4 per batch at no charge. Additional special handling requests are subject to charge of $50/per hour o IMPORTANT: Once the imaged data has been delivered you will have 60 days to review all images. After 60 days all original documents will be destroyed or a monthly storage box fee will apply
o ECS may choose to utilize a scanning partner to perform these services as quoted and ECS would remain the project manager and billing agent.
o Standard processing fee added to credit card payments Software Only (Download Only)
Image quantities, Prep and Index services are estimated. Actual images and services completed will be invoiced.

ECS Black & White Document Scanning Services up to legal size 877-790-1600
5905 Brockton Ave. Ste. C
Riverside, CA 92506
www.ECSImaging.com
ECS Imaging, Inc.
5905 Brockton Ave, Suite C
Riverside CA, 92506
Description
Quote for Ongoing Scanning Services
Town of Los Gatos
ECS Black & White Map Scanning Services up to esize
ECS Pick Up Fee
ECS Prep Charge Per Hour
ECS Indexing Fee Per Hour
ECS Upload Fee - Per Volume/Briefcase

EXHIBIT C

ITEM NO. 3.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/19/2024
ITEM NO: 4
DATE: November 14, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a One-Year Agreement for Services with OpenGov, Inc. for Enterprise Asset Management System Services and Procurement System Services Effective December 30, 2024, Through December 29, 2025, for a Total Agreement Amount of $66,355.59 With Four One-Year Options Thereafter
RECOMMENDATION:

Authorize the Town Manager to execute a one-year Agreement for Services with OpenGov, Inc. (Attachment 1) for Enterprise Asset Management System Services and Procurement System services effective December 30, 2024, through December 29, 2025, for a total agreement amount of $66,355.59, with four one-year options thereafter.

BACKGROUND:

The Parks and Public Works Department (PPW) has been utilizing an Enterprise Asset Management System (EAM) by Cartegraph since 2004. The Cartegraph Asset Management Program allows for the day-to-day management of work activities by effectively logging and tracking citizen requests, scheduling work orders, and tracking of assets and work history throughout the Town. PPW currently tracks assets and work associated with facilities, parks, streets, sidewalks, signs, and fleet. The system is essential in managing the work of the department and identifying the needs of the Town’s assets.

In July 2022, Cartegraph was acquired by OpenGov, Inc.

On November 6, 2023, the Town Council approved the purchase and implementation of OpenGov’s Procurement Suite to help PPW achieve efficiencies and time savings with more

ITEM NO. 4.

PAGE 2 OF 2
SUBJECT: Authorize the Town Manager to Execute a Three-Year Agreement for Services with OpenGov, Inc. for Enterprise Asset Management System Services and Procurement System Services
DATE: November 14, 2024
collaboration, automation, and streamlined solicitation development using boilerplate templates, and an extensive scope of work library, centralized contract management with automatic reminders, and the ability to track spending, insurance, and change requests.

DISCUSSION:

The current contracts with both Cartegraph Enterprise Asset Management System services and OpenGov Procurement Suite services are due to expire on December 30, 2024. Since both services are now under the OpenGov suite of products, staff recommends that both products/services be covered under one new contract effective December 30, 2024. The agreement term is proposed for one year, with four one-year extensions, with commensurate price increases after that time.

CONCLUSION:

Execution of this agreement will allow staff to continue the use of this important software resource.

FISCAL IMPACT:

The Adopted Fiscal Year (FY) 2024/25 Parks and Public Works Operating Budget includes sufficient funds to cover the contract in the amount of $66,355.59 for FY 2024/25.

Future Proposed Operating Budgets will include requests for funding for the contract per the amounts listed above.

ENVIRONMENTAL ASSESSMENT:

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

Attachment:

1. Agreement for Services including Exhibit A (OpenGov Cost Proposal)

ITEM NO. 4.

Agreement for Services
OpenGov, Inc. ATTACHMENT 1

AGREEMENT FOR SERVICES

PREAMBLE
THIS AGREEMENT is dated for identification on this 19th day of November 2024 by and between TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and OpenGov, Inc. (“Service Provider”), identified as a C Corporation and whose address is 660 3rd Street, Suite 100, San Francisco CA 94107. This Agreement is made with reference to the following facts.

I. RECITALS
Town sought quotations for the services described in this Agreement, and Service Provider was found to be the lowest responsible supplier for this purchase.

Service Provider represents and affirms that it is willing to perform the desired work pursuant to this Agreement.

Town desires to engage Service Provider to provide new contract for Enterprise Asset Management program (Cartegraph) services and Procurement Suite services provided by OpenGov, Inc.

Service Provider warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement. Service Provider acknowledges Town has relied upon these warranties to retain Service Provider.

II. AGREEMENTS

2.1 Scope of Services. Service Provider shall provide services as described in that certain Proposal Order Form for the period of December 30, 2024 through December 29, 2025 sent to the Town on September 6, 2024, which is hereby incorporated by reference and attached as Exhibit A.

2.2 Term and Time of Performance. The effective date of this Agreement shall begin December 30, 2024 through December 29, 2025, with four one-year options.

2.4 Sole Responsibility. Service Provider shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.

2.5 Intentionally Omitted.

2.6 Compensation: Compensation for services for the dates December 30, 2024 to December 29, 2025 are in the amount not to exceed $ $66,355.59, inclusive of all costs. All invoice amounts, including exercised option years (pending budget appropriation and extension of the agreement). Including option years, shall be invoiced in the amounts further described in the applicable Order Form (“Exhibit A”).

ITEM NO. 4.

Agreement for Services
OpenGov, Inc. ATTACHMENT 1

2.7 Billing. Billing shall be annually by invoice within thirty (30) days of the execution of this Agreement.

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. 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, which shall not be unreasonably withheld.

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

2.11 Conflict of Interest. Service Provider understands that its professional responsibilities are solely to the Town. The Service Provider has and shall not obtain any holding or interest within the Town of Los Gatos. Service Provider has no business holdings or agreements with any individual member of the Staff or management of the Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Service Provider warrants that it does not presently and shall not acquire any direct or indirect interest adverse to those of the Town in the subject of this Agreement, and it shall immediately disassociate itself from such an

ITEM NO. 4.

Agreement for Services
OpenGov, Inc. ATTACHMENT 1
interest, should it discover it has done so and shall, at the Town's sole discretion, divest itself of such interest. Service Provider shall not knowingly and shall take reasonable steps to ensure that it does not employ a person having such an interest in this performance of this Agreement. If after employment of a person Service Provider discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement Service Provider shall promptly notify Town of this employment relationship, and shall, at the Town's sole discretion, sever any such employment relationship.

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

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 in an amount not less than: two million dollars ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage.
ii. Service Provider agrees to have and maintain, for the duration of the contract, Cyber Liability insurance for limits no less than $2,000,000 per occurrence or claim, and $4,000,000 in the aggregate.
 Coverage shall be sufficiently broad to respond to the duties and obligations undertaken by Consultant in this contract.
 The policy(ies) shall include coverage for claims involving security breach, business interruption, cyber extortion, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, and damage to or destruction of electronic information.
 The policy(ies) shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.
iii. Service Provider agrees to have and maintain, for the duration of the contract, Technology Errors and Omissions Liability insurance in an amount of $2,000,000 per occurrence or claim, and $4,000,000 in the aggregate sufficient to

ITEM NO. 4.

Agreement for Services
OpenGov, Inc. ATTACHMENT 1
insure Consultant for technological errors or omissions in the performance of the particular scope of work under this contract.
iv. 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.

3.2 General Liability:
i. The Town, its elected and appointed officials, employees, and agents are to be covered as additional insureds as respects: commercial general liability policy to cover liability arising out of activities performed by or on behalf of the Service Provider.
ii. The Service Provider's insurance coverage shall be primary insurance as respects the Town, its elected and appointed officials, employees, and agents with respect to this contract. Any insurance or self-insurances maintained by the Town, its officers, officials, or employees shall be excess of the Service Provider's insurance and shall not contribute with it.
iii. Intentionally Omitted.
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.

3.3 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 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.

3.4 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. 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.

3.5 Indemnification. The Service Provider shall save, keep, hold harmless and indemnify and defend the Town its elected and appointed officials, agents, and employees (“Indemnitees") from all third party claims for damages, liabilities, penalties, costs, or expenses (including attorneys’ fees) in law or equity that may at any time arise or be set up because of damages to

ITEM NO. 4.

Agreement for Services
OpenGov, Inc. ATTACHMENT 1
property or personal injury received by reason of a material breach of this Agreement or in the course of performing work which may be occasioned by a grossly negligent act or omissions of the Service Provider, or any of the Service Provider's officers, employees, or agents or any subcontractor. Service Provider’s duty to indemnify and hold harmless Indemnitees shall not apply to the extent such damages or liabilities are caused by the sole or active negligence or willful misconduct of Indemnitees.

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. If either party materially breaches any term of this Agreement and fails to cure such breach within 30 days after receiving written notice by the non-breaching party (10 days in the case of non-payment), the non-breaching party may terminate this Agreement.

Termination for Non-Appropriation of Funds. For any term after the first full year of this Agreement, Town may terminate this Agreement if it does not appropriate funds to continue this Agreement in a future fiscal year by providing notice in writing no less than 30 days before the end of the then-current term. Such termination shall be effective upon the expiration of the then-current term. To invoke termination under this section, Town must use good faith efforts to secure the appropriate funds for the next year’s fees.

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
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030

ITEM NO. 4.

Agreement for Services
OpenGov, Inc. ATTACHMENT 1
OpenGov, Inc.
660 3rd Street, Suite 100
San Francisco CA 94107
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.

4.9 Severability. The unenforceability, invalidity or illegality of any provision(s) of this Agreement shall not render the other provisions unenforceable, invalid or illegal.

4.10 Contract Interpretation. Each party acknowledges that it has reviewed this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

4.11 Counterparts. The Parties may execute this Agreement in two or more counterparts, which shall, in the aggregate, be deemed an original but all of which, together, shall constitute one and the same instrument. A scanned, electronic, facsimile or other copy of a party’s signature shall be accepted and valid as an original.

4.12 Warranty of Authority. The signatories to this Agreement warrant and represent that each is authorized to execute this Agreement and that their respective signatures serve to legally obligate their respective representatives, agents, successors and assigns to comply with the provisions of this Agreement.

ITEM NO. 4.

Agreement for Services
OpenGov, Inc. ATTACHMENT 1
IN WITNESS WHEREOF, the Town and Service Provider have executed this Agreement.

Town of Los Gatos by:
________________________________________
Chris Constantin, Town Manager
OpenGov, Inc. by:
________________________________________
Sam Kramer, SVP of Finance
Recommended by:
________________________________________
Nicolle Burnham,
Director of Parks and Public Works
Approved as to Form:
________________________________________
Gabrielle Whelan, Town Attorney
Attest:
________________________________________
Wendy Wood, CMC, Town Clerk

ITEM NO. 4.

OpenGov Inc.
660 3rd Street, Suite 100
San Francisco, CA 94107
United States
OG-00CA2521
4/12/2024 Marguerite Kuntz
7/30/2024 [email protected]
7/31/2024 Prorated + 12 Months
12/29/2025
Town of Los Gatos, CA Kinjal Buch
110 E. Main St
Los Gatos, California 95030
United States
[email protected]
Annually in Advance
Net Thirty (30) Days
Product / Service Start Date End Date Annual Fee
Orange Advantage 7/31/2024 12/29/2024 $2,916.67
Orange Advantage 7/31/2024 12/29/2024
OMS Plus, OMS User (25 Users), Internal Requests, Asset Condition Manager and Adv Inspections, Automation Manager, Facilities Domain, Parks & Recreation Domain, Signal Domain, Stormwater Domain, Transportation Domain, Walkability Domain, Systems Integration Support, Orange Advantage 12/30/2024 12/29/2025 $48,600.01
OpenGov Procurement 12/30/2024 12/29/2025 $17,755.58
See Service Terms
July 31, 2024 $0.00
December 30, 2024 $66,355.59
December 30, 2025 $68,371.07
December 30, 2026 $73,157.04
December 30, 2027 $76,814.89
December 30, 2028 $80,655.63
"This Order Form incorporates the OpenGov Master Services Agreement (""MSA"") attached here or available at https://opengov.com/terms-of-service/master-services-agreement/.

The ""Agreement"" between OpenGov and the entity identified above (""Customer"") consists of the Order Form, MSA, and, if Professional Services are purchased, the Statement of Work.

Unless otherwise specified above, fees for the Software Services and Professional Services shall be due and payable, in advance, 30 days from receipt of the invoice.

By signing this Agreement, Customer acknowledges that it has reviewed, and agrees to be legally bound by the Agreement. Each party’s acceptance of this Agreement is conditional upon the other’s acceptance of the Agreement to the exclusion of all other terms.

Signature: Signature:

Name: Name:

Title: Title:

Date: Date:

Order Form Number:

Created On: Prepared By:

Order Form Expiration: Email:

Subscription Start Date: Contract Term:

Subscription End Date:

Customer: Contact Name:

Bill To/Ship To: Email:

Billing Frequency:

Payment Terms:

SOFTWARE SERVICES:

Annual Subscription Total:

Serivce Terms
Service Date: Amount:

Town of Los Gatos, CA OpenGov, Inc.

Customer Information
Order Details
Order Form Legal Terms
PRORATED TO ALIGN TO 12/30/2024
ONE TIME CREDIT FOR PRORATED PERIOD ($2,916.67)
(Prorated to Align to 12/30/2024 + One Time Credit for Prorated Period) (Annual Software Fee)
(Optional Auto Renewal Term 1)
(Optional Auto Renewal Term 2)
(Optional Auto Renewal Term 3)
(Optional Auto Renewal Term 4)

ITEM NO. 4.

PREPARED BY: Mike Vroman
Senior Traffic 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: 11/19/2024
ITEM NO: 5
DATE: November 14, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for the Smart Signals Field Improvements Project (Traffic Signal Modernization) CIP No. 813-0227 Completed by St. Francis Electric, Inc., and Authorize the Town Clerk to File for Recordation RECOMMENDATION:

Authorize the Town Manager to execute a certificate of acceptance and notice of completion for the Smart Signals Field Improvements Project (Traffic Signal Modernization Project) CIP No. 813-0227 completed by St. Francis Electric, Inc., and authorize the Town Clerk to file for recordation (Attachment 1).

BACKGROUND:

Town staff began the Traffic Signal Modernization Project in 2018, also referred to as the Smart Signals Project, to upgrade the Town-owned and operated traffic signals (31 in total) and enhance the signal systems with state-of-the-art adaptive technologies. The project was funded by a combination of Town funds and grants from the Santa Clara Valley Transportation Authority (VTA) and the Metropolitan Transportation Commission (MTC), including the Innovative Deployments to Enhance Arterials (IDEA) grant for a total project budget of approximately $2.6 million.

The goals of the Smart Signals Project were to improve multimodal safety and traffic operations; improve travel time for vehicles, bicycles, and pedestrians; improve the ability to plan for and respond to variable traffic volumes and patterns; test new technologies for bicycle detection and prioritization; and to help address traffic congestion issues on Los Gatos Boulevard.

ITEM NO. 5.

PAGE 2 OF 4
SUBJECT: Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for the Smart Signals Field Improvements Project (Traffic Signal Modernization) CIP No. 813-0227 and Authorize the Town Clerk to File for Recordation
DATE: November 14, 2024
This was a large-scale project with both local and Federal project funding elements. At its April 3, 2018, meeting, the Town Council approved an Agreement for Consultant Services with WTrans for project management services for this project. In that report, staff noted that additional project delivery service needs and costs would likely be required during project implementation and that these would be addressed through separate Council action(s) as necessary.

At the December 17, 2019, meeting, the Town Council was advised of a four-step procurement process for the project implementation, with a total contract value of approximately $1.8M, and the Council authorized the Town Manager to issue procurement documents for the following services:

1. Central System - Adaptive Traffic Control System and Advanced Traffic Management System (ATCS-ATMS). Econolite was awarded this work on June 2, 2020, and it is now complete.

2. Signal Controller Upgrades. Econolite provided new controllers and St. Francis completed the installation.

3. Automated Traffic Signal Performance Measures & Virtual Bike Detection (ATSPM & VBD). Econolite was awarded this work on February 16, 2021, and it is now complete.

4. Design of Field Elements. Iteris was awarded this work on May 19, 2020, and it is now complete.

In addition, a construction agreement for the Field Elements was executed with St. Francis Electric on March 11, 2021, and the improvements are now complete. The current action will result in acceptance of the in-field work completed by St. Francis.

The work completed for this project provides adaptive systems technology that allows staff to better coordinate signals along the arterials, reduce signalized intersection delays, and achieve higher overall performance.

DISCUSSION:

A construction agreement for the Smart Signal Field Improvements was executed with St.

Francis Electric, Inc. on March 11, 2021. St. Francis has now satisfactorily completed all contracted work items within budget. A warranty with St. Francis will be in effect for two years from the date of the requested Town Council action. The execution and recordation of the Certificate of Acceptance is required to finalize the Town’s acceptance of the project and to release the retention funds withheld from the contractor.

ITEM NO. 5.

PAGE 3 OF 4
SUBJECT: Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for the Smart Signals Field Improvements Project (Traffic Signal Modernization) CIP No. 813-0227 and Authorize the Town Clerk to File for Recordation
DATE: November 14, 2024
CONCLUSION:

This Council action would close the active contract with St. Francis Electric, Inc. and begin the warranty period for their work. The execution of this Certificate of Acceptance and Notice of Completion is the final component of the Smart Signals Field Improvements Project (Traffic Signal Modernization) CIP No. 813-0227 and will allow the project to be considered complete, closed out, and removed from the Capital Improvement Program.

FISCAL IMPACT:

There were sufficient funds available in the CIP Budget for the Traffic Signal Modernization Project, also referred to as the Smart Signals Project, including the Smart Signals Field Improvements (CIP No. 813-0227 Traffic Signal Modernization) Project as displayed in the fiscal table.

The remaining balance of the Traffic Mitigation Funds will be transferred back to the fund as this project is now considered complete and will be removed from the Capital Improvement Program.

Budget Costs
GFAR $ 14,308
Grants $ 1,520,062
Traffic Mitigation $ 1,103,289
Total Budget $ 2,637,659
Costs
Project Expenditures $ 2,598,924
Total Expenditures $ 2,598,924
Available Balance $ 38,735
Traffic Signal Modernization
CIP No. 813-0227

ITEM NO. 5.

PAGE 4 OF 4
SUBJECT: Authorize the Town Manager to Execute a Certificate of Acceptance and Notice of Completion for the Smart Signals Field Improvements Project (Traffic Signal Modernization) CIP No. 813-0227 and Authorize the Town Clerk to File for Recordation
DATE: November 14, 2024
ENVIRONMENTAL ASSESSMENT:

The Smart Signals project is a project as defined under the California Environmental Quality Act (CEQA) and is Categorically Exempt under Section 15301: Existing Facilities. A Notice of Exemption was filed.

Attachment:

1. Certificate of Acceptance and Notice of Completion

ITEM NO. 5.

Recording Requested by:

TOWN OF LOS GATOS
WHEN RECORDED MAIL TO:

TOWN CLERK

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

TYPE OF RECORDING

CERTIFICATE OF ACCEPTANCE AND NOTICE OF COMPLETION
PPW JOB NO. 20-813-0227 Smart Signals Field Improvements TO WHOM IT MAY CONCERN:

I do hereby certify that St. Francis Electric, Inc. completed the work called for in the agreement with the Town of Los Gatos dated March 11, 2021. The work is outlined in the Town’s bid process prepared by the Town of Los Gatos and generally consisted of furnishing all labor, materials, tools, equipment, and services required for completion of the PPW Job No. 20-813-0227 located in the TOWN OF LOS GATOS, County of Santa Clara, State of California and was completed, approved and accepted August 6, 2024.

Bond No.: ES00008160
Date: March 25, 2021

TOWN OF LOS GATOS
By: __________________________________
Chris Constantin, Town Manager
Acknowledgment Required
ATTACHMENT 1 Page 58
ITEM NO. 5.

PREPARED BY: Rebecca Colassaco
Systems Administrator
Reviewed by: Town Manager, Assistant Town Manager, Chief Technology Officer, 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: 11/19/2024
ITEM NO: 6
DATE: November 5, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Enter into an Agreement with MBS Business Systems (MBS) to Provide Multifunctional Printer Purchases, Replacement, and Maintenance Services for the Town of Los Gatos in an Amount Not to Exceed $260,540
RECOMMENDATION:

Authorize the Town Manager to enter into an agreement with MBS Business Systems (MBS) to provide multifunctional printer purchases, replacement, and maintenance services for the Town of Los Gatos in an amount not to exceed $260,540.

BACKGROUND:

In 2018 the Town entered into a lease and maintenance agreement with MBS for the Town's copiers and printers. This was a five-year agreement, expiring last year. Staff issued a Request for Proposal (RFP) last year for multifunctional printer (MFP) lease, replacement, management, and maintenance services.

Staff determined there was still significant useful life left in many of the fleet of printers and went back out for quotes to the vendors for maintenance only. MBS was the only vendor that provided a quote. The maintenance contract expires November 30, 2024. Moving forward, staff believes we can extend the life of multifunctional printers, and replace units on an as-needed basis, utilizing the cooperative purchasing agreement NASPO Value Point Contract #189762 per Section XVII of the Town Purchasing Policy. Staff met with MBS to finalize the equipment list and discuss terms and conditions. As part of these terms and conditions, staff is requesting authorization to enter into a five-year agreement with MBS for multifunctional printer purchase, replacement, management, and maintenance services.

ITEM NO. 6.

PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Enter into a Five-Year Agreement with MBS to Provide Multifunctional Printer Purchases, Replacement, Management, and Maintenance Services
DATE: November 5, 2024
DISCUSSION:

After conducting a thorough review of the current fleet of printers, staff identified units that require replacement based on factors such as usage, performance issues, and equipment endof-life. This approach, which contrasts with the prior method of replacing all printers at once, aims to extend the life of equipment wherever feasible, ultimately reducing overall printer costs. The plan also focuses on reducing the Town's total cost of ownership across all departments by eliminating unused features and replacing units only when necessary, after careful review with staff. The selected vendor, known for consistently high customer service ratings and excellent references from other municipal government clients, demonstrated a strong understanding of the project scope. Their responsiveness to the need for extending printer life while maintaining equipment under service contracts ensures long-term value.

Additionally, the cooperative purchasing agreement will leverage contract pricing, securing the best rates for both equipment and maintenance.

The proposed 5-year plan is designed to maximize the lifespan of all printers within the Town’s fleet. The agreement will include monthly maintenance fees for the entire fleet and the cost of replacing printers as needed, through the cooperative purchasing agreement. All printers will be replaced within the next three years. Lease options were also reviewed for comparison, and it was determined that the cost of the equipment for the life of the lease was higher than the outright purchase price. Additionally, the plan includes a monthly allowance of 50,500 blackand-white (B/W) copies and 2,500 color copies. Any copies exceeding this allowance will incur a flat cost per copy. The following is a detailed breakdown of the anticipated costs for each year of the plan, covering both printer replacements and ongoing maintenance fees.

Year 1 (2024-2025)
Printers to replace 13
Total cost for replacements of $53,112.49
Maintenance fees (entire fleet of printers) $29,068.40
Year 2 (2025-2026)
Printers to replace 10
Total cost of replacement printers $40,874.30
Maintenance fees (entire fleet of printers) $26,302.14
Year 3 (2026-2027)
Printers to replace 13
Total cost of replacement printers $37,469.47
Maintenance fees (entire fleet of printers) $24,227.81

ITEM NO. 6.

PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Enter into a Five-Year Agreement with MBS to Provide Multifunctional Printer Purchases, Replacement, Management, and Maintenance Services
DATE: November 5, 2024
Year 4 (2027-2028)
Printers to replace NONE
Maintenance fees only $24,227.81
Year 5 (2028-2029)
Printers to replace NONE
Maintenance fees only $25,257.03
Total not to exceed $260,540.

CONCLUSION:

Staff believes that MBS has the expertise & willingness to work on ways to maximize the life of equipment and experience to provide multifunctional printer purchases, replacement, and maintenance services for the Town. In addition, staff anticipates that the new cost structure will result in annual savings compared to the previous agreement by extending the life of printers locking in maintenance fees for 5 years. Staff therefore recommends that the Town Council authorize the Town Manager to enter into an agreement with MBS for these services.

Attachment 1 is a draft agreement.

COORDINATION:

The Finance Department, Town Attorney, Information Technology, and Town Manager’s Office coordinated this report.

FISCAL IMPACT:

There are sufficient funds available to cover the cost of the new agreement for the remainder of this fiscal year. Future contract years will be incorporated into the Town’s proposed Budgets.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Proposed Town MBS Agreement with Exhibit A - MBS Proposal

ITEM NO. 6.

Agreement for Services with MBS ATTACHMENT 1

AGREEMENT FOR CONSULTANT SERVICES
THIS AGREEMENT is made and entered into on December 1, 2024, by and between the TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and MBS Business Systems (Monterey Bay Office Products, Inc), (“Consultant”), whose address is 325 Victor Street, Suite A, Salinas, CA 93907. This Agreement is made with reference to the following facts.

I. RECITALS

1.1 The Town desires to engage Consultant to provide multifunctional printer purchase, replacement, management, and maintenance services.

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

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

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

II. AGREEMENTS

2.1 Scope of Services. Consultant shall provide services as described in that certain proposal dated November 6, 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 from December 1, 2024, to November 30, 2029. Consultant shall perform the services described in this agreement as follows:

Year 1 (2024-2025)
Printers to replace 13
Total cost for replacements of $53,112.49
Maintenance fees (entire fleet of printers) $29,068.40
Year 2 (2025-2026)
Printers to replace 10
Total cost of replacement printers $40,874.30
Maintenance fees (entire fleet of printers) $26,302.14
Year 3 (2026-2027)
Printers to replace 13
Total cost of replacement printers $37,469.47
Maintenance fees (entire fleet of printers) $24,227.81

ITEM NO. 6.

Agreement for Services with MBS ATTACHMENT 1

Year 4 (2027-2028)
Printers to replace NONE
Maintenance fees only $24,227.81
Year 5 (2028-2029)
Printers to replace NONE
Maintenance fees only $25,257.03
Total not to exceed $260,540

2.3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant shall maintain a Town of Los Gatos business license pursuant to Chapter 14 of the Code of the Town of Los Gatos.

2.4 Sole Responsibility. Consultant shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.

2.5 Information/Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant under this Agreement are the Town’s property and shall be delivered to the Town upon the completion of Consultant's services or at the Town's written request. All reports, information, data, and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall not make any of 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 $260,540.00, 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.

ITEM NO. 6.

Agreement for Services with MBS ATTACHMENT 1

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

Invoices:

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

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

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

2.10 Independent Contractor. It is understood that the Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and not an agent or employee of the Town. As an independent contractor, he/she shall not obtain any rights to retirement benefits or other benefits that 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

ITEM NO. 6.

Agreement for Services with MBS ATTACHMENT 1

Agreement, Consultant shall promptly notify Town of this employment relationship, and shall, at the Town's sole discretion, sever any such employment relationship.

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

III. INSURANCE AND INDEMNIFICATION

3.1 Minimum Scope of Insurance:
i. Consultant agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/her and his/her firm to an amount not less than: two million dollars ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage. ii. Consultant agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/her and his/her staff to an amount not less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage. 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 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 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.

ITEM NO. 6.

Agreement for Services with MBS ATTACHMENT 1

ii. The Consultant'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 Consultant's insurance and shall not contribute with it.
iii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers.
iv. The Consultant's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability.

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

3.3 Workers’ Compensation. In addition to these policies, Consultant shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement. Further, Consultant shall ensure that all subcontractors employed by Consultant provide the required Workers' Compensation insurance for their respective employees.

3.4 Indemnification. The Consultant 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 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.

ITEM NO. 6.

Agreement for Services with MBS ATTACHMENT 1

4.3 Termination of Agreement. The Town and the Consultant shall have the right to terminate this agreement with or without cause by giving not less than fifteen days (15) written notice of termination. In the event of termination, the Consultant shall deliver to the Town all plans, files, documents, reports, performed to date by the Consultant. In the event of such termination, Town shall pay Consultant an amount that bears the same ratio to the maximum contract price as the work delivered to the Town bears to completed services contemplated under this Agreement, unless such termination is made for cause, in which event, compensation, if any, shall be adjusted in light of the particular facts and circumstances involved in such termination.

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

4.5 Disputes. In any dispute over any aspect of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, including costs of appeal.

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

Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
MBS Business Systems
325 Victor Street, Ste. A
Salinas, CA 93907
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. 6.

Agreement for Services with MBS ATTACHMENT 1

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

Town of Los Gatos by:

Chris Constantin, Town Manager

Recommended by:

Sai Kim, Chief Technology Officer
Consultant, by:

Printed Name and Title
Approved as to Form:

Gabrielle Whelan, Town Attorney
Attest:

Wendy Wood, CMC, Town Clerk

ITEM NO. 6.

Technology & IT Managed
print | copy | scan | network | secure | cloud
MBS Business Systems
325 Victor St. Suite A
Salinas, CA 93907
P 831.758.1048 / 800.848.7575
F 831.758.5984
MBit Managed
365 Victor St. Suite A
Salinas, CA 93907
P 831.975-5102
www.mbsworks.com
Town of Los Gatos
110 Main Street
Los Gatos, CA November 6, 2024
Town of Los Gatos Leadership,
It is with gratitude for the ongoing partnership and collaborative between MBS and the Town that I present the following proposal for continued service and elevation of your Multi-function and Single-function equipment with Maintenance and Service.

The history between the Town of Los Gatos and MBS is long, admirable, and respected. With joint commitment to the best care and support for the community we share, the details outlined in this five-year proposed contract represent our best advice for sustainable operation efficiency and cost effectiveness.

For the duration the of the next five years, MBS recommends the following, as illustrated in the drilled-down detail presented:
- The Town will work in partnership with MBS to enhance models, as outlined, over the course of the next three years. All associated costs are outlined in Attachment A of the Maintenance Contract. o The Town’s multi-function (copy/print/scan) and single-function (print only) equipment has reached a point where models have become archaic in nature, hence Maintenance Costs continue to increase.
o These models will all reach end of life during the next three years, and will no longer be supported by the manufacturer.
o With the age and end of life status of equipment, the Town is gravely missing out an opportunity to elevate security, lower maintenance costs (the older a machine, the harder it becomes to support it) and begin a new base-line of up-to-date machinery for many years to come. - MBS will provide a cost effective, comprehensive Maintenance Agreement for 5 Years, as detailed, to support all of the Town’s equipment and as the three-year enhancement plan is activated. - NOTE: This proposal illustrates best estimated costs, based on current and historical volumes/usage and a specific timeline for specifically planned equipment enhancement.

EXHIBIT A

ITEM NO. 6.

Technology & IT Managed
print | copy | scan | network | secure | cloud
MBS Business Systems
325 Victor St. Suite A
Salinas, CA 93907
P 831.758.1048 / 800.848.7575
F 831.758.5984
MBit Managed
365 Victor St. Suite A
Salinas, CA 93907
P 831.975-5102
www.mbsworks.com
MBS extends the following detail of our proposed offer, in alignment with the collaborative NASPO ValuePoint Contract. The specifics presented are based on a three-year agreement of replacing outdated equipment and a Maintenance Agreement for five years with the outlined enhancement plan. - While total volume costs are best estimates and may slightly fluctuate, the Cost per Copy (CPC Rates), base allotments, and costs of new equipment are binding per this contract.

Respectfully,
Michelle Brill
Major Account Manager
Authorization to move forward with three-year equipment enhancement plan and subsequent five-year Maintenance Agreement:
_/S/ _____________________________
Michelle Brill, Major Account Manager November 6, 2024
______________________________
For Town of Los Gatos
________________________________ _________________________ Printed Name and Title Date

ITEM NO. 6.

Managed Print Services Agreement
Date:

Contract #:

P.O. #:

Sales Rep:

BILL TO EQUIPMENT LOCATION
Key Operator Phone
Billing Contact Email
Email Meter Contact Preference: Fax Number:

Phone/Fax (408) 354-6805 Equip Fleet view Fax Email
Contract Start Date:

Labor Parts Drum Units Firmware Upgrades
Black Toner Blk. Developer Fuser Units IT Support**
Color Toner Clr. Developer Transfer Units External Fiery Controller** Other:

Mo. Fee Included
Monthly
Value-added IT Support (for connected devices): Yes No
Controller Support (for Fiery or e-Copy Scan Stations): per month Yes No MAINTENANCE AGREEMENT ACCEPTANCE: Initial Below

MBS ACCEPTANCE
Authorized Signature Signature Date
B/W Start Meter
See Attachment A
Make/Model
Value-added IT (VIT) support includes unlimited on-site, as well as telephone help-desk support during normal business hours for IT service relating directly to the device(s) below. VIT support includes diagnosis and repair of printing and/or scanning issues associated with the device(s) below. VIT also include re-installation of print drivers, addition of new scan users, etc. as needed. VIT support does not cover IT support for other devices not included on this contract, support for software not purchased from MBS or support required as a result of changes to the network or server to which the device is connected. Customer is responsible for providing software licenses if software purchased from MBS requires re-installation. Minimum VIT agreement term is 1 year and is renewed automatically with the hardware agreement at MBS then prevailing rate. VIT DOES NOT include network or IT services which are not directly connected to the device(s) listed below.

Serial Number
Color Start
Meter
External & internal controller fee covers repair and/or replacement of the Fiery internal OR external controller hardware and/or e-Copy scan station hardware that is external to the MFP device. This fee will be billed with the contract base.

EQUIPMENT:

Base Billed in Advance:

TYPE
ADDITIONAL COVERAGE OPTIONS:

This contract covers the below equipment and includes the following when box is checked:

Quarterly
TYPE
See Attachment A
Toner usage will be monitored and may be limited to 125% of the manufacturers' guaranteed image yields.

Print Name Date
I have read and agree to the terms & conditions outlined above and on page two (2) of this maintenance agreement and choose to purchase the agreement at this time. I understand that this agreement is automatically renewed annually at the end of the contract term at MBS' then prevailing rates. This contract may be canceled by either party, with 30 days written notice.

I decline this maintenance agreement and understand that all future service calls will be chargeable. Fees will be based upon MBS' current hourly labor rate plus applicable travel time. Parts and supplies will be available at the manufacturer's suggested retail pricing. Guaranteed priority 4 hour average service response time is not available for equipment not under maintenance agreement.

CUSTOMER ACCEPTANCE
Los Gatos, CA 95031
Gitta Ungvari
December 1, 2024 November 30, 2029
MAINTENANCE AGREEMENT TERMS:

PO Box 655
Contract End Date:
[email protected]
ID Number
4 Hour Avg. Response
Loaner Unit if Needed
Preventative Maintenance
OVERAGE COST PER IMAGE:
$40.00 per month, billed with BW Base
See Attachment A
Paper, staples and equipment moves are not included in contract, unless specifically listed above. There will be a nominal shipping fee assessed on contract invoices for supply delivery fees. MBS guarantees and average 4 hour response time during normal business hours, Monday - Friday, 8AM to 5PM, holidays excluded. ** IT Support and/or External Fiery Controller is included only if Value-Added Support and/or Fiery Support options below are purchased.

Cost Per Image/Scan

MONTHLY BASE BILLING FEE
See Attachment A
November 7, 2024
Michelle Brill
Town of Lost Gatos See Attachment A
325 Victor St. Ste. A, Salinas, CA 93907 P 831.758.1048 F 831.758.5984 1700 Wyatt Ave. Suite 3, Santa Clara, CA 95054 P 408.727.4627 F 408.727.4628

ITEM NO. 6.

MBS Business Systems Terms and Conditions

1. References made to “MBS” shall mean Monterey Bay Systems or MBS Business Systems. Machines sold by MBS are eligible for a service contract immediately upon the delivery of the equipment. If service contract is requested at any other time, machine must first be inspected by MBS. Customer shall bear any and all costs necessary to bring machine up to specifications. Machines not sold initially by MBS which are accepted for a service contract after inspection are not covered for parts the first 60 days.

2. This is an annual contract that will automatically renew yearly after the initial period unless cancelled by customer by written notice at least thirty (30) days prior to anniversary date. Said automatic renewal is to provide uninterrupted coverage to customer. This contract may increase in cost annually to adjust with equipment age and/or change in consumable/parts pricing. This Agreement shall not be assignable or transferable by Customer without MBS’s prior written consent. MBS may terminate this Agreement if Equipment is sold or transferred to a third party, and upon either event all remaining payments shall become immediately due and owing. Equipment may not be relocated without the prior written approval of MBS.

3. The pricing of this Agreement is based upon a single sided, 8.5" X 11" images and/or a single sided, 8.5"X14". 11X17 images and/or 8.5X11 two-sided images will be counted as two images. In the event of early termination by the Customer, all remaining charges shall become immediately due and owing.

Customer shall pay all applicable sales tax, installation and freight charges. If Customer fails to make any payment when due, Customer agrees to pay MBS interest at the rate of one and one-half percent (1.5%) per month or the maximum interest rate permitted by law, whichever is less on any such overdue or outstanding balances. Customer shall pay a $35.00 service charge on any and all returned checks.

4. This Agreement does not cover IT support beyond the specific equipment and included hardware listed on the front of this Agreement, unless the Valueadded IT Support YES box is checked on the front of this document. All network support beyond the initial installation and/or scope of the Va lue-added IT Support (if checked) will be chargeable at MBS’s standard time and materials rates, unless covered by a separate network support agreement.

5. All required preventive maintenance and emergency service necessary to keep the Equipment in efficient operating order will be performed by MBS during its regular business hours (8:00 a.m. - 5:00 p.m., Monday through Friday, except holidays).

6. MBS will replace without charge, parts which have been broken or worn through normal use and are necessary to machine servicing a nd maintenance adjustments, including consumables (as indicated on front of this agreement) such as toner, developer, drums and fuser rollers within the limits of their suggested yield. (Paper and Staples are excluded). Additional toner requested beyond 125% of manufacturer’s average yield specifications is subject to additional charges.

7. Customer will be responsible for the daily care and cleaning of the top glass, dusting equipment, replenishing toner, clearing obvious paper jams, and reporting meter reads. It is the customer’s responsibility to provide a key operator who shall be responsible for normal operator functions listed above. In addition, it is the customer’s responsibility to provide MBS with meter readings as needed. If current meter reading is not submitted after repeated requests, MBS will use an estimated meter reading based on service history for billing period. Customer agrees that MBS will not be held accountable to make adjustments, repairs or replacements if MBS is not provided reasonable access to the equipment. Service calls for normal operator functions (adding or changing supplies, removing misfeeds, cleaning glass, etc.) will be subject to a time and material service charge at MBS’s then current rate. Additional chargeable services include but are not limited to:
a) Repairs resulting from causes other than normal use: Customer's willful act; negligence or misuse; Customer’s use of suppl ies (including paper) or spare parts which do not meet published specifications and which cause abnormally frequent service calls or service proble ms; accident, failure or variances of electrical power; failure to provide air conditioning, heat or humidity control as required; abuse, theft, fi re, water, or any other damage resulting from uncontrollable causes. MBS will make every effort to inform Customer of potential proplem prior to resorting to a chargeable service call.
b) Subsequent repairs made when personnel other than those of MBS or its assigned Servicing Dealer perform service. c) Transportation and relocation - repairs resulting from unauthorized relocation of equipment by anyone other than MBS. d) Work which Customer requests to be performed outside regular business hours.

8. When in MBS’s opinion the Equipment becomes of advanced age or usage exceeds manufacturer’s specifications, and cannot be maintained in good working order through MBS's routine preventive maintenance service, or if work beyond the scope of this Agreement is required, MBS shall submit to Customer a cost estimate of such work. If Customer declines to authorize the same, MBS shall have the right, on ten (10) days written notice to Customer, to terminate service under this Agreement as to any or all items of Equipment. Removed parts replaced by MBS shall become property of MBS. MBS shall have full and free access to the equipment to provide service thereon. Neither MBS nor an assigned Servicing Dealer shall be responsible for any delays in servicing the Equipment due to the inability or delay in obtaining a necessary part or supply.

9. MBS assumes no liability for operator error or damage caused by customer.

10. MBS's obligations and warranties under this agreement are in lieu of (A) all other warranties, expressed or implied, including implied warranties of merchantability and fitness for a particular purpose, which are specifically waived and (B) all other obligations or liablities for damages including, but not limited to: 1) personal injury or property damage, or 2) loss of profit or other consequential damages arising out of or in connection with this agreement or the maintenance service caused directly or indirectly my strikes, accidents, climatic conditions, or reason of similar nature beyond its control. Customer agrees that if MBS caused any injury or damage to customer or customer's property, which said claim is not otherwise waived herein, customer agrees that the maximum amount that MBS shall have to pay customer for said injury or damage is an amount equal to the services rendered to the customer that caused said injury or damage.

11. This Agreement constitutes the entire Agreement between the parties with respect to the furnishing of maintenance service superseding all previous proposals, oral or written.

12. MBS reserves the right to withhold service and product if Customer fails to make any payment due under the terms and conditions of this Agreement. If Customer fails to make any payment when due under the terms and conditions of this Agreement as set forth above or otherwise is in default of the terms and conditions of this Agreement, Customer agrees that all payments due under said Agreement shall be accelerated and Customer shall be liable for all payments due under the full term of this Agreement that are unpaid or the reasonable cost of all services completed by MBS for the benefit of Customer, whichever is greater. If Customer breaches any term or condition of this Agreement, Customer agrees to reimburse MBS for all attorney fees and costs MBS expends to enforce the terms and conditions of this Agreement against Customer. Further, this Agreement shall be interpreted exclusively under the laws of the State of California.
325 Victor St. Ste. A, Salinas, CA 93907 P 831.758.1048 F 831.758.5984 1700 Wyatt Ave. Suite 3, Santa Clara, CA 95054 P 408.727.4627 F 408.727.4628

ITEM NO. 6.

Town of Los Gatos MBS Maintenance Agreement and Equipment Enhancement Contract Overview Timeline
Maintenance
Agreement Renewal
ONLY
Maintenance Agreement
with Proposed Equipment
Enhancements
Net 30 Proposed
Equipment
Expense TOTAL
60-month $1 Out
Lease
Proposed
Equipment
Enhancements
Deparment
Proposed
Equipment
Enhancements
ID
Proposed
Equipment
Enhancements
Current Model
Equipment Age
at
Enhancement
(Years)
Proposed
Equipment
Enhancements
New Model
Net 30
Price Pretax
YEAR 1 2024-25 $33,319.93 $28,156.82 $48,615.55 $13,196.40 Down Finance 13954 BH4700p 11 BH4701i $895.00 $1,078.73 Sales Tax $911.58 Sales Tax $4,496.94 Sales Tax CDD Admin. 15543 BH4700p 11 BH4701i $895.00 $34,398.66 $29,068.40 TOTAL $53,112.49 TOTAL Finance AP 15545 BH4700p 11 BH4701i $895.00 Finance Payroll 15546 BH4700p 11 BH4701i $895.00
$5,330.26 Finance Director 15556 BH4700p 11 BH4701i $895.00 Savings from MA ONLY PPW Sign Shop 16597 C3351 2 C3351i $2,495.90 Including Sales Tax PD Emerg. Ops. 17405 C3851 6 BH4701i $895.00 PPW 17408 C308 6 C301i $5,739.90
H.R. 17415 C308 6 C3351i $2,814.65
PD HQ Admin. 17426 C658 6 C551i $10,787.00
CC Back/Plan 17432 C458 6 C551i $9,883.00
Library Admin. 17461 C3100 6 C4000i $1,030.10
PPW 17481 C659 6 C551i $10,495.00
YEAR 2 2025-26 N/A $25,477.31 $37,413.55 $24,578.52 Civ. Ctr. Down 14503 BH4700p 12 BH4701i $895.00 $824.83 Sales Tax $3,460.75 Sales Tax Down CDD 15544 BH4700p 12 BH4701i $895.00 $26,302.14 TOTAL $40,874.30 TOTAL Down CDD Perm. 15553 BH4700p 12 BH4701i $895.00 PPW Outback 17403 C3851 9 C3351i $2,360.00
$2,766.26 Clerk 17410 C3851 7 C3351i $2,360.00
Savings from Year 1 PD Ops. Reports 17419 C308 7 C301i $4,969.00 Including Sales Tax PD Detectives 17421 C308 7 C301i $5,330.00 $8,096.52 Civ. Ctr. Manager 17429 C458 7 C451i $9,408.00 Savings from MA ONLY Year 1 Library w/Coin Op 17447 C287 7 C3351i $4,445.55 Including Sales Tax Library w/Coin Op 17460 C287 7 C251i $5,856.00 YEAR 3 2026-27 N/A $23,468.03 $34,297.00 $36,145.32 Civ. Ctr. CDD Hall 15542 BH4700p 13 BH4701i $895.00 $759.78 Sales Tax $3,172.47 Sales Tax PD Sergeant 15548 BH4700p 13 BH4701i $895.00 $24,227.81 TOTAL $37,469.47 TOTAL PD Admin. 15549 BH4700p 13 BH4701i $895.00 PD Evidence 15552 BH4700p 13 BH4701i $895.00
PD Captain 15554 BH4700p 13 BH4701i $895.00
$2,074.33 Civic Center 15775 BH4700p 11 BH4701i $895.00 Savings from Year 2 Civ. Ctr. Attorney 17221 BH4750 4 BH4751i $2,411.00 Including Sales Tax PD Downstairs 17411 C308 8 C301i $5,330.00 Library Staff 17417 C308 8 C301i $4,559.00
$10,170.85 Civ. Ctr. Copy Room 17435 BH808 8 BH850i $14,062.00 Savings from MA ONLY Year 1 PPW White House 17965 C3300i 6 C4000i $835.00 Including Sales Tax PD HQ 18172 C3300i 6 C4000i $835.00 PD HQ 18340 BH4702p 6 BH4701i $895.00
Total $120,326.10
YEAR 4 2027-28 $23,468.03 $36,145.32 Sales Tax $11,130.16 MA ONLY for Year 4 $759.78 Sales Tax (total by year)
$24,227.81 TOTAL
YEAR 5 2028-29 $24,464.98 $36,145.82
MA ONLY for Year 5 $792.05 Sales Tax
$25,257.03 TOTAL
TOTAL $131,456.26
Includes Sales Tax Includes Sales Tax
Standards to Apply When Calculating Maintenance Agreement Rates (CPC's) Example No increase New C301i Year 1-3 Year 4 Year 5 Year 6 Year 7 7% increase annually B/W CPC $0.0058 $0.0062 $0.0067 $0.0079 $0.0093 15% increase annually Color CPC $0.0450 $0.0484 $0.0520 $0.0612 $0.0720 30% increase annually
Year 8
$0.0133
$0.1029
TOTAL Maintenance Agreement for 5 Years Best Estimate: $129,083.19 Equipment Age Years 8+*
*if still supported by manufacturer
Equipment Age Years 1-3
Equipment Age Years 4-5
Equipment Age Years 6-7

ITEM NO. 6.

Technology & IT Managed
print | copy | scan | network | secure | cloud
MBS Business Systems
325 Victor St. Suite A
Salinas, CA 93907
P 831.758.1048 / 800.848.7575
F 831.758.5984
MBit Managed
365 Victor St. Suite A
Salinas, CA 93907
P 831.975-5102
www.mbsworks.com
Regular and Preventative Maintenance and Supplies
MBS service contracts include all parts, labor, preventative maintenance services, and consumables (with the exception of paper and staples). MBS will work directly with the Town to establish a process of Service Report review on a six-month basis, or as needed pending any unexpected service situations.

Service Requirements
We guarantee an average 4-hour service response time during business hours. MBS commits to providing preventative and remedial maintenance service during the Town’s operating business hours and performing preventative care of equipment as determined by the manufacturer. Additional, remedial maintenance may be requested by the Town on an as needed basis. All Service is performed by fully factory trained technicians and adequate inventory of parts is an MBS standard operating practice for all customers.

Customer Support Services
MBS has a reputation for consistent and excellent customer service. Our recently improved portal on our website allows for ease in meeting all needs associated with equipment support. Requests for service and supplies, as well as the ability to pay invoices directly in the service portal elevates ease and productivity. The Town may also request updates on outstanding service calls through the portal. Additionally, we have a local team of staff that answer calls directly, and our experienced employees are empowered to work with you to simplify administrative processes as much as possible.

Further, the Town’s Account Manager, Michelle Brill, will work closely with the Town’s Leadership Team as well as end users to establish and implement efficiency and effectiveness in daily operations, short-and long-term planning, and budget/cost analysis. All Town employees may also request training, reviews, or special project assistance and education at any time from the MBS Customer Support Team.

Loaner
MBS will provide a comparable loaner unit if we are unable to repair a device within 48 hours (two business days). If an aged device (6 years or older) is unable to be repaired because of obsolete status, MBS will leave the service loaner for 30 days while a decision is made for its replacement. The service loaner will be billed at the same maintenance rate as the machine it is replacing during this period.

Response Time
MBS is committed to a swift response and solution-oriented outcomes with Service. Our company and employees recognize the importance of minimizing downtime for the Town of Los Gatos staff. We adhere to our average 4-hour response time during business hours. MBS will provide service credit at $50.00 per hour should there ever be a failure to respond as required.

ITEM NO. 6.

Reviewed by: Town Manager, Assistant Town Manager, Parks and Public Works Director, 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: 11/19/2024
ITEM NO: 7
DATE: November 5, 2024
TO: Mayor and Town Council
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Consider Adoption of a Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008)
RECOMMENDATION:

Consider adoption of a Resolution of Necessity (Attachment 2) to authorize acquisition of private property through eminent domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008).

EXECUTIVE SUMMARY:

This staff report is submitted for review by the Town Council of the Town of Los Gatos in connection with a hearing to consider adoption of a Resolution of Necessity (Attachment 2).

Under California law, the Town cannot acquire private property via eminent domain unless and/or until the Council has adopted a Resolution of Necessity by a four-fifths majority vote.

The statutory requirement that a public entity adopt a Resolution of Necessity before initiating a condemnation action is designed to ensure that public entities will verify and confirm the validity of their intended use of the power of eminent domain prior to the application of that power in any one particular instance.

Staff recommends that the Council adopt a Resolution of Necessity (Attachment 2) to authorize the acquisition by eminent domain of a fee interest in a portion of 14915 Shannon Road, Los Gatos, CA (APN 537-27-047) (the “Larger Parcel”) for the Shannon Road Capital Improvement Project (the “Project”). Specifically, an approximately 29,807 square foot portion of the Larger Parcel (the “Subject Property”) comprised of (a) an approximately 21,929 square foot strip of land within the existing Shannon Road right of way; and (b) an approximately 7,878 square foot strip of land along the Larger Parcel’s frontage on Shannon Road. The Subject Property is more

ITEM NO. 7.

PAGE 2 OF 8
SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008)
DATE: November 5, 2024
particularly described and depicted in the attachments to the Resolution of Necessity. As described in more detail below, the Project is necessary to repair the roadbed, increase Shannon Road’s pavement width, install guardrails, and install retaining walls on the north side of Shannon Road.

The hearing on the Resolution of Necessity affords the property owner the opportunity to address the Town Council on the necessity of acquiring the Property for the Project. However, the amount of compensation the property owner is entitled to receive should not be discussed at the hearing. That does not mean that negotiations for the acquisition of the Subject Property are at an end. If the Town adopts the Resolution of Necessity, after the hearing, negotiations for the acquisition of the Subject Property may continue.

BACKGROUND:

The Larger Parcel and the Subject Property
The Larger Parcel is comprised of approximately 27.09 acres that is improved with a singlefamily home, barn, and outbuildings. The Larger Parcel is mostly raw, vacant land on the north side of Shannon Road. The buildings are along the Larger Parcel’s frontage on Shannon Road and will not be impacted by the proposed acquisition. The first approximately 150 feet of the Larger Parcel immediately north of Shannon Road is relatively level to moderately sloping. The rest of the Larger Parcel is relatively steeply sloped (30-50%) as the Larger Parcel extends north up a hillside. Shannon Road runs along the Larger Parcel’s southern property line. The Shannon Road right of way is 40 feet wide, 20 feet of which are on the Larger Parcel in a road easement.

Figure 1 depicts the Larger Parcel.

ITEM NO. 7.

PAGE 3 OF 8
SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008)
DATE: November 5, 2024
Figure 1. 14915 Shannon Road Property Boundary
As mentioned above, the Subject Property is comprised of (a) an approximately 21,929 square foot strip of land within the existing Shannon Road right of way (i.e., within the Town’s existing roadway easement); and (b) an approximately 7,878 square foot strip of land along the Larger Parcel’s frontage on Shannon Road. Figure 2 depicts the approximately 21,929 square foot portion of the Subject Property that is within the Town’s existing right of way (green) and the approximately 7,878 square foot portion of the Subject Property that is along the Larger Parcel’s Shannon Road frontage. The properties depicted in Figure 2 are those that are required for implementation of the Shannon Road Repair project and the subject of this hearing.

ITEM NO. 7.

PAGE 4 OF 8
SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008)
DATE: November 5, 2024
Figure 2. Property of 14915 Shannon Road Required for Shannon Road Repair The location of the proposed acquisition in relation to the Larger Parcel is depicted in Figure 3.

Figure 3. Location of Proposed Acquisition
A. The Project
The Town annexed the relevant portion of Shannon Road from the County of Santa Clara in 2018. This section of Shannon Road has failed repeatedly in the past. Before Shannon Road was annexed, the County repaired the relevant section of Shannon Road by injecting epoxy foam

ITEM NO. 7.

PAGE 5 OF 8
SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008)
DATE: November 5, 2024
into the roadbed. However, that repair has since failed, and the roadbed has continued to deteriorate.

The Project will implement a permanent repair to Shannon Road. The Project will install retaining walls, increase the pavement width from 22 to 23 feet, and install guardrails and provide area for a shoulder on the south side of Shannon Road.

B. Negotiations to Date
The Town obtained an appraisal of the Subject Property from appraiser Terry Larson, MAI. On June 4, 2024, the Town sent the property owner a Government Code offer letter (Attachment 1) offering the full amount of that appraisal as just compensation for the proposed acquisition.

The Town had been in negotiations with the Property’s prior owner, Bud Elam, until October 2024, when the Property was foreclosed on. Since then, the Town has contacted the Property’s new owner regarding its interest in acquiring the Subject Property. The Town sent the Property’s new owner a Government Code offer letter on October 14, 2024. However, to date, the Property’s owners have not engaged the Town in negotiations for the voluntary acquisition of the Subject Property. Therefore, staff recommends that the Town Council adopt a resolution of necessity to initiate eminent domain proceedings.

DISCUSSION:

As described above, to adopt a resolution of necessity, the Council must make the following findings1:

1. The public interest and necessity require the proposed project;

2. The property described in the resolution is necessary for the proposed project;

3. The proposed project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; and

4. That either the offer required by Section 7267.2 of the Government Code has been made to the owner(s) of record or the offer has not been made because the owner cannot be located with reasonable diligence.

This staff report provides data and information addressing each of these issues.

1 Code Civ. Proc. § 1245.230.

ITEM NO. 7.

PAGE 6 OF 8
SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008)
DATE: November 5, 2024
A. The Public Interest and Necessity Require the Project First, the Town Council must find that the public interest and necessity require the Project. The Town acquired the relevant section of Shannon Road from the County of Santa Clara in 2018 and immediately identified areas of pavement failure. Various engineering studies and analysis revealed that the subbase below the northern travel lane (westbound travel) has numerous voids and is unstable.

As a Hillside Collector Street (See General Plan Pages 5-16), Shannon Road is a critical transportation route between San José and Los Gatos. It is a primary emergency evacuation route for areas of east Los Gatos. If repairs are not made, the westbound travel lane may need to be closed for safety reasons. The Project, which will repair the roadway and upgrade it to meet current roadway design safety standards, is in the public interest.

B. The Interests Sought to be Acquired are Necessary for the Project Second, the Town Council must find that the interests sought to be acquired are necessary for the Project. As previously described, the Subject Property is necessary for the Project. The Project could not be constructed as designed without the acquisition of the Subject Property.

C. The Project is Located in such a Manner as to Offer the Greatest Public Benefit with the Least Private Detriment
Third, the Town Council must find that the Project is located in such a manner as to offer the greatest public benefit with the least private detriment. In connection with the Project’s design, staff and the Town’s consultants evaluated a variety of options. For example, the Town considered shifting the roadway south to reduce or eliminate the need to acquire private property on the north side of Shannon Road. However, that alternative would have required the Town to “cut” into the hillside on the south side of the existing roadway. That design would have required two retaining walls – one on the south side of Shannon Road to support the cut, and a second on the north side. That design would have significantly increased project costs and environmental impact.

The Project, as currently proposed, offers the greatest public benefit with the least private detriment because: (a) it requires the acquisition of the least possible amount of private property required to permanently repair the impacted section of Shannon Road and upgrade it to meet current roadway design safety standards; (b) the majority of the Subject Property is already within a Town-owned road easement; and (c) it avoids a substantial excavation and installation of a retaining wall on the south side of Shannon Road.

ITEM NO. 7.

PAGE 7 OF 8
SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008)
DATE: November 5, 2024
D. A Government Code Offer Has Been Delivered To the Property Owner Fourth, the Council must find that the Town has extended an offer for the Subject Property pursuant to Government Code section 7267.2 to the new property owner. On October 14, 2024, the Town sent an offer in conformance with Government Code section 7267.2(a) to the property owner (Attachment 1).
2 While the property owners have requested a meeting, they have not yet engaged the Town in negotiations.

On November 1, 2024, the Town mailed the new property owner a Notice of Intent to consider adoption of a Resolution of Necessity to acquire the Subject Property by eminent domain at its regular meeting of November 19, 2024. A copy of the notice provided to the property owner is in Attachment 3. The Notice was sent to the address identified on the last equalized county assessment roll, and to the new owner’s attorney and agent.

E. Statutory Authority for Acquiring the Subject Property through Eminent Domain
The Town is authorized to acquire the Subject Property for the Project pursuant to statutes including, but not limited to, California Constitution, Article 1, Section 19; the California Eminent Domain Law, Code of Civil Procedure Section 1230.010 et seq., including, but not limited to, sections 1240.010 through 1240.050 inclusive, and sections 1240.110, 1240.120, 1240.150, 1240.220, 1240.320, 1240.330, 1240.350, 1240.410, 1240.510, 1240.610, 1240.650, and 1240.660; Government Code section 37350.5; Streets & Highway Code section 10102; and other provisions of law.

F. Environmental Assessment
The Town fully complied with the California Environmental Quality Act, Public Resources Code Section 21000 et seq., for acquiring the Subject Property when on September 4, 2024, the Town determined that the Project is categorically exempt from CEQA pursuant to 14 California Code of Regulation, sections 15301 (Existing Facilities Exemption) and 15061(b)(3) (Common Sense Exemption). The County filed the Notice of Exemption in accordance with Public Resources Code section 21152 on September 10, 2024. No further environmental review is required.

2 The Town’s offer included an informational pamphlet describing the eminent domain process and the property owner’s rights under the Eminent Domain Law. The Town’s offer also (1) contained a written statement of, and summary of the basis for, the amount it established as just compensation; and (2) offered, pursuant to Code of Civil Procedure Section 1263.025, to pay the record owner the reasonable costs, up to $5,000, for an independent appraisal of the Property. (Gov. Code § 7267.2.)

ITEM NO. 7.

PAGE 8 OF 8
SUBJECT: Consider Adoption of Resolution of Necessity to Authorize Acquisition of Private Property Through Eminent Domain for the Shannon Road Capital Improvement Project (CIP No. 811-0008)
DATE: November 5, 2024
COORDINATION:

This report was coordinated with the Town Attorney’s Office, Special Counsel Nick Muscolino, and the Department of Public Works.

FISCAL IMPACT:

If this property acquisition proceeds to trial as an eminent domain action, the fiscal impact to the Town will be the property acquisition cost plus attorney fees and costs, which could be up to $200,000. There is sufficient funding in the project budget to pay for the property acquisition.

Attachments:

1. Government Code Offer Letter

2. Resolution of Necessity

3. Notice of Hearing on Resolution of Necessity

ITEM NO. 7.

TO\VN OF Los GATOS
PARKS & Pl'BLIC \VORKS DEPARTMENT
PHONE (408) 399-5770

VIA EMAIL AND CERTIFIED MAIL
October 14. 2024
John W. Hoffee
P.O. Box 670
Kailua Kona, HI 96745
(By US Mail only)
Richard H. Gillette
P.O. Box 1189
Carlsbad, CA 92018
E-mail: grichard6 [email protected]
Ray M. Elam, III
Trustee. Elam Family Trust
! 432 Sea Ridge Drive
Newport Beach, CA 92660
E-mail: budelam:q;gmail.com
SER\1CE CHffER
41 !\ITLES A VENl,'E
Los GATOS, CA 95030
Re: Offer Pursuant to G·overnment Code Section 7267.2 to Acquire a Portion of 14915 Shannon Road. Los Gatos. CA (APN 537-27-047)
Dear Mr. Hoffee, Mr. Gillette & Mr. Elam:

On June 4, 2024. the Town of Los Gatos ('"Town'') sent Mr. Elam an offer pursuant to Government Code section 7267.2 to purchase a portion of the property located at 14915 Shannon Road, Los Gatos. CA (APN 537-27-047) ("Larger Parcel''). On October 7. 2024, Mr. Elam advised the Town that he had lost the Larger Parcel to foreclosure and provided Mr. Gillette's contact information. On October 9. 2024, Mr. Gillette ( 1) provided the Town a Trustee's Deed Upon Sale indicating that Mr. Hoffee had acquired fee title to the Larger Parcel. (2) advised the Town that he is the --owner's representative.'' and (3) advised that Mr. Hoffee is forming an entity to hold the Larger Parcel. This letter supersedes the Town's July 4. 2024 letter to Mr. Elam.

Government Code section 7627.2 provides that betcxe adopting a resolution of necessity and initiating negotiations for the acquisition of real property, a public entity shall establish an amount that it believes to be just compensation for the property it seeks to acquire. and to make an offer to the ·'owner or owners of record to acquire the property for the full amount so established." Based on Mr. Gillette's representations and the Trustee's Deed Upon Sale ATTACHMENT 1 Page 83
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1 of 3
Draft Resolution Date Adopted

DRAFT RESOLUTION

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS

TO DETERMINE THE NECESSITY TO ACQUIRE PROPERTY BY EMINENT DOMAIN FOR THE SHANNON ROAD CAPITAL IMPROVEMENT PROJECT;

TO AUTHORIZE COMMENCEMENT OF LITIGATION TO ACQUIRE PROPERTY BY EMINENT DOMAIN; AND TO SEEK AN ORDER OF PREJUDGMENT POSSESSION (CODE OF CIVIL PROCEDURE SECTION 1245.220)
Property Owner: John W. Hoffee
Property Address: 14915 Shannon Road, Los Gatos, CA (portion) APN: 537-27-047
WHEREAS, the Town of Los Gatos proposes to acquire a portion of that certain real property located in the Town of Los Gatos, County of Santa Clara, State of California that is designated Assessors Parcel No. 537-27-047 (“Larger Parcel”). Specifically, an approximately 29,807 square foot portion of the Larger Parcel comprised of (a) an approximately 21,929 square foot strip of land within the Town’s existing Shannon Road right of way; and (b) an approximately 7,878 square foot strip of land along the Larger Parcel’s frontage on Shannon Road, as more particularly described and depicted in Exhibit A incorporated herein by reference (the “Subject Property”) for the Shannon Road Capital Improvement Project (“Project”);
WHEREAS, the Project will repair the roadbed and bring the road into compliance with existing Town standards, including by increasing the width of the paved road surface, installing guardrails, and installing retaining walls on the north side of Shannon Road; WHEREAS, the Town is vested with the power of eminent domain to acquire real property interests by eminent domain for the public use set forth herein in accordance with the California Constitution, Article 1, Section 19; the California Eminent Domain Law, Code of Civil Procedure Section 1230.010 et seq., including, but not limited to, sections 1240.010 through 1240.050 inclusive, and sections 1240.110, 1240.120, 1240.150, 1240.220, 1240.320, 1240.330, 1240.350, 1240.410, 1240.510, 1240.610, 1240.650, and 1240.660; Government Code section 37350.5; Streets & Highway Code section 10102; and other provisions of law; WHEREAS, the Town fully complied with the requirements of the California Environmental Quality Act (Public Resources Code sections 21000 et seq.) for acquiring the Subject Property when on September 4, 2024, the Town determined that the Project is categorically exempt from CEQA pursuant to 14 California Code of Regulation, sections 15301 (Existing Facilities Exemption) and 15061(b)(3) (Common Sense Exemption). The Town filed the Notice of Exemption in accordance with Public Resources Code section 21152 on September 10, 2024. No further environmental review is required;
WHEREAS, the Subject Property was appraised by an independent real estate appraiser and an amount believed to be probable just compensation for the Subject Property was established by the Town;

ITEM NO. 7.
2 of 3
Draft Resolution Date Adopted
WHEREAS, a written offer for the full appraised value was mailed to the owner or owners of record for the Subject Property, pursuant to Government Code section 7267.2; WHEREAS, on November 1, 2024, the Town mailed a Notice of Intention to Consider Adoption of a Resolution of Necessity (“Notice”) for acquisition by eminent domain of the Subject Property. As required by Code of Civil Procedure section 1245.235, the Notice was mailed to all persons whose name(s) appear on the last County of Santa Clara Equalized County Assessment Roll as having an interest in the Subject Property, and to the addresses appearing on the Roll. The Notice advised the persons of their right to be heard on the matters referred to in the Notice on the date and at the time and place stated; WHEREAS, the Notice informed the owner of its right to appear and to be heard by the Town Council of the Town of Los Gatos on the following matters: (a) whether the public interest and necessity require the Project; (b) whether the Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; (c) whether the Subject Property sought to be acquired is necessary for the Project; and (d) whether the offer required by section 7267.2 of the Government Code has been made to the owner(s) of record; and
WHEREAS, the hearing referenced in the Notice was held on November 19, 2024, at the time and place stated in said notice, and all interested parties were given an opportunity to be heard on the following matters:

A. Whether the public interest and necessity require the Project; B. Whether said Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury; C. Whether the Subject Property is necessary for the Project; and D. Whether the offer required by Government Code section 7267.2 has been made to all owners of record.

NOW, THEREFORE THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY

FIND, RESOLVE, AND DETERMINE AS FOLLOWS BY A VOTE OF FOUR-FIFTHS OR MORE OF ITS MEMBERS:

1. The recitals contained herein are true and correct;

2. The Subject Property is situated in the Town;

3. The public interest and necessity require the Project;

4. The interests in the Subject Property described and depicted in Exhibit A sought to be acquired by eminent domain are necessary for the Project;

5. The Project is planned or located in the manner that will be most compatible with the greatest public good and the least private injury;

ITEM NO. 7.
3 of 3
Draft Resolution Date Adopted

6. The Town has complied with all conditions and statutory requirements necessary to exercise the power of eminent domain to acquire the Subject Property, as well as any other matter regarding the right to take said Subject Property by eminent domain, including but not limited to, making the offer required by Government Code section 7267.2;

7. Insofar as any portion of the Subject Property has heretofore been appropriated for public use, the proposed use set forth herein constitutes a compatible use under Code of Civil Procedure section 1240.510 or alternatively a more necessary public use to which the Subject Property is appropriated pursuant to Code of Civil Procedure sections 1250.410, 1240.610, and 1240.650. The Town is, thus, empowered to acquire the Subject Property for a compatible public use pursuant to Code of Civil Procedure section 1240.510 et seq., and a more necessary public use pursuant to Code of Civil Procedure section 1240.610 et seq.;

8. All environmental review required by law has been prepared and adopted; and

9. The Town Attorney is hereby authorized to acquire in the name of the Town the Subject Property described in this Resolution in accordance with the provisions of California Eminent Domain Law, to commence an action in eminent domain, to deposit the probable amount of just compensation with the State Condemnation Fund, to apply to the Superior Court for an order permitting the Town to take immediate possession and make immediate use of the Subject Property for the Project, to take all necessary steps to acquire the Subject Property under the law, and to take such actions as he or she may deem advisable or necessary in connection therewith.

PASSED AND ADOPTED, by the Town Council of the Town of Los Gatos, State of California on November 19, 2024, by the following vote:

COUNCIL MEMBERS
AYES:

NOES:

ABSTAIN:

ABSENT:

SIGNED:

MAYOR OF THE TOWN OF LOS GATOS, CALIFORNIA
ATTEST:

TOWN CLERK
Exhibits:

A. Legal Description and Plat Map of the Subject Property

ITEM NO. 7.

EXHIBIT A

LEGAL DESCRIPTION
Shannon Road Grant of Right of Way
All that certain real property situate in the Town of Los Gatos, County of Santa Clara, State of California, being a portion of the lands granted to Diane Barnett and Ray M. Elam, Ill as CoTrustees of the Elam Family Trust A by deed filed for record May 29, 2015 as Document 22970019 in the office of the Santa Clara County Recorder, being more particularly described as follows:

Commencing at an iron pipe in monument box located at the northerly terminus of that certain course shown as "N 46° 11' 21" W, 394.60111 on the map entitled "Record of Survey of the Monument Line of Shannon Road ... " filed for record July 13, 1978 in Book 422 of Maps at Pages 39-46 in said Recorder's office; said course being depicted on sheet 4 of 8 therein, thence from said point of commencement North 07°
12'24" West, 26.58 feet to the true Point of Beginning
of this description; thence South 55°
48'03" East, 31.91 feet; thence South 48°26'38" East, 45.97 feet; thence South 46°
41'49" East, 107.02 feet; thence South 45°
34'03" East, 124.07 feet to the
beginning of a curve concave northeasterly having a radius of 500.00 feet; thence southeasterly along the arc of said curve 74.81 feet through a central angle of 08° 34'21 to the beginning of a
non-tangent curve concave northeasterly having a radius of 350.00 feet, from which point the radius bears North 34°44'06" East; thence southeasterly along the arc of said curve 99.18 feet through a central angle of 16°
14'09"; thence South 71 °
30'03" East, 57.32 feet to the beginning
of a curve concave southerly having a radius of 375.00 feet; thence easterly along the arc of said curve 38.43 feet through a central angle of 5
°
52'20"; thence South 65°
37'44" East, 153.47
feet; thence North 24°
22'16" East, 5.00 feet; thence South 65°
37'44" East, 9.00 feet; thence
South 24°
22'16" West, 5.00 feet; thence South 65°
37' 44" East, 33.94 feet; thence North
24°
22'16" East, 33.00 feet; thence South 65°
37' 44" East, 20.00 feet; thence South 24°22'16"
West, 33.00 feet; thence South 65°
37' 44" East, 68.97 feet to the beginning of a curve concave southerly having a radius of 325.00 feet; thence southeasterly 44.19 feet through a central angle of 07°
47'28"; thence South 57°
50' 15' East, 25.21 feet; thence North 32°
09'45" East, 5.00
feet; thence South 57°
50'15" East, 10.00 feet; thence South 32°09'45" West, 5.00 feet; thence South 57°50'15" East, 33.40 feet to the beginning of a non-tangent curve concave southwesterly having a radius of 335.00 feet, from which point the radius bears South 43°
55'48" West; thence southerly along the arc of said curve 54.96 feet through a central angle of 09°
24'00"; thence South 25°
59'14" East, 57. 73 feet to a point in the westerly line of that certain 72.14 acre tract granted to Manuel F. Escover by deed dated November 27, 1922, filed for record in Book 566 of Deeds at Page 403 in said Recorder's office, from which point an iron pipe in monument box located at the southerly terminus of that certain course shown as "N 30°09'05" W, 240.63"' on sheet 4 of said Record of Survey bears South 16°54'19" East, 167.68 feet; thence along said westerly line South 23°
40'51" West, 38.50 feet to an iron pipe
set at the southwesterly corner of said 72.14 acre tract; said corner being further described as

EXHIBIT A

ITEM NO. 7.

LEGAL DESCRIPTION (cont.)
Shannon Road Grant of Right of Way
lying in the center of Shannon Road; thence along the southwest line of said lands of Elam et. al., said southwest line also being the centerline of Shannon Road, the following courses and distances, each as shown on that certain map entitled “Record of Survey of a portion of Shannon Road” filed for record May, 28, 2024 in Book 962 of Maps at Page 10 in said Recorder's office, North 24°21'16” West, 20.92 feet to the beginning of a curve concave southwesterly having a radius of 285.00 feet; thence northwesterly along the arc of said curve 214.93 feet through a central angle of 43°12’32”; thence North 67°33’47” West, 69.26 feet to the beginning of a curve concave northerly having a radius of 500.00 feet; thence northwesterly along the arc of said curve 25.95 feet through a central angle of 02°58’26”; thence North 64°35’21” West, 150.28 feet to the beginning of a curve concave southerly having a radius of 750.00 feet; thence westerly along the arc of said curve 90.05 feet through a central angle of 06°52’46”; thence North 71°28’07” West, 42.02 feet to the beginning of a curve concave northerly having a radius of 360.00 feet; thence northwesterly along the arc of said curve 161.26 feet through a central angle of 25°39’54”; thence North 45°48’13” West, 199.08 feet to the beginning of a curve concave southwesterly having a radius of 2,500.00 feet; thence northwesterly along the arc of said curve 127.44 feet through a central angle of 02°55’14”; thence leaving said centerline of Shannon Road North 41*16'33” East, 20.00 feet to the point of beginning.

Containing 29,807 square feet, more or less.

Bearings used in this description are based upon the California Coordinate System of 1983 (CCS83), Zone 3.

Prepared under the direction of:

Charles M. Weakley, L.S. 6421

ITEM NO. 7.

Point of Beginning
DATUM NOTE:

Bearings shown are based upon the
California Coordinate System of 1983
(CCS1983), Zone 3, epoch 2021.3.

Point of JS Commencement, "Sao, € Qs e Fnd. monument > “OX SO per R-1
N: 1,907,166.93
E: 6,145,747.40 a
New R/W Line
LEGEND Cl or L1
Rad R-1
See curve or line data table Occupational € Radial Bearing per 2023 Survey

Bk. 422 Maps, Pg. 39-46 Deed Reference) xs
EXHIBIT B: ~

Plat to Accompany Legal Description GRAPHIC SCALE ~ 60 0 ee 玫 aa 1inch = 60 ft. ON MOUNTAIN PACIFIC COS SURVEYS 1735 Enterprise Dr, Suite 109 PH (707) 425-6234

CURVE DATA TABLE

NO. DELTA LENGTH RADIUS

Ci 08° 34' 21" 74.81' 500.00"

C2 16° 14' 09" 99.18' 350.00' C3 05°

52 20" 38.43' 375.00'

LINE DATA TABLE

NO. BEARING DISTANCE

L1 NO7” 12 24"W 26.58'

L2 S55° 48' 03"E 31.91'

L3 $48” 26' 38"E 45.97'

L4 $71° 30' 03"E 57.32'

LS S65” 37' 44"E 153.47'

123 N71° 28 07"W 42.02' 124 N41° 16' 33"E 20.00'

Right of Way
SO
(Property Line per 、 4760 OR
29,807: sq. ft.

Fairfield, CA 94533 FAX (707) 425-1969 Scale: 1"=60' | Date: April 19, 2024 | Proj. No. 521058 | Sheet No.: 1 of 2 | ITEM NO. 7.

BEARING DISTANCE

5.00'

9.00'

5.00'

33.94'

33.00'

20.00'

33.00'

68.97' 25.21'

5.00'

10.00'

5.00'

33.40'

57.73 167.68'

38.50'

20.92'

42.02'

N24° 22 16"E
S65” 37' 44"E
$24” 22 16"W
$65° 37' 44"E
N24° 22 16"E
S65” 37' 44"E
$24” 22 16"W
S65” 37' 44"E
557” 50' 15"E
N32° 09' 45"E
557” 50' 15"E
$32” 09' 45"W
557” 50' 15"E
$25° 59' 14"E
$16° 54' 19"E
$23° 40 51"W
N24° 21' 16"W
N71° 28' 07"W
Occupational q
per 2023 Survey
(Property Line per
Deed Reference)
L9
L10
L11 L12 L13
L14
L15
L16 L17 L18 L19 L20 L21 L22
L23
LEGEND
ClorLi
Rad
R-1

See curve or line data table Radial Bearing

Bk. 422 Maps, Pg. 39-46
NO.

C3
C4
C5
C6
DELTA
05° 52' 20"
07° 47' 28"
09° 24' 00"
02° 58' 26"
LENGTH

38.43'

44.19'

54.96' 25.95'
RADIUS
375.00'
325.00'
335.00' 500.00'

EXHIBIT B

Plat to Accompany Legal Description GRAPHIC SCALE PN 0 MOUNTAIN PACIFIC CO" SURVEYS 1735 Enterprise Dr, Suite 109 PH (707) 425-6234 60 60 1 inch = 60 ft.

Right of Way NJ
29,807: sq. ft.

New R/W Line
Fnd. monument
per R-1
N: 1,906,431.20

E: 6,146,674.22

ITEM NO. 7.

ATTACHMENT 3

ITEM NO. 7.

ITEM NO. 7.

ITEM NO. 7.

EXHIBIT A

LEGAL DESCRIPTION
Shannon Road Grant of Right of Way
All that certain real property situate in the Town of Los Gatos, County of Santa Clara, State of California, being a portion of the lands granted to Diane Barnett and Ray M. Elam, Ill as CoTrustees of the Elam Family Trust A by deed filed for record May 29, 2015 as Document 22970019 in the office of the Santa Clara County Recorder, being more particularly described as follows:

Commencing at an iron pipe in monument box located at the northerly terminus of that certain course shown as “N 46° 11’ 21” W, 394.60” on the map entitled “Record of Survey of the Monument Line of Shannon Road...” filed for record July 13, 1978 in Book 422 of Maps at Pages 39-46 in said Recorder’s office; said course being depicted on sheet 4 of 8 therein, thence from said point of commencement North 07°12’24” West, 26.58 feet to the true Point of Beginning of this description; thence South 55°48’03” East, 31.91 feet; thence South 48*26'38” East, 45.97 feet; thence South 46*41'49” East, 107.02 feet; thence South 45*34'03” East, 124.07 feet to the beginning of a curve concave northeasterly having a radius of 500.00 feet; thence southeasterly along the arc of said curve 74.81 feet through a central angle of 08°34’21 to the beginning of a non-tangent curve concave northeasterly having a radius of 350.00 feet, from which point the radius bears North 34°44’06” East; thence southeasterly along the arc of said curve 99.18 feet through a central angle of 16°14’09”; thence South 71*30'03” East, 57.32 feet to the beginning of a curve concave southerly having a radius of 375.00 feet; thence easterly along the arc of said curve 38.43 feet through a central angle of 5°52’20”; thence South 65°37'44” East, 153.47 feet; thence North 24*22'16” East, 5.00 feet; thence South 65*37'44” East, 9.00 feet; thence South 24*22'16” West, 5.00 feet; thence South 65°37'44” East, 33.94 feet; thence North 24*22'16” East, 33.00 feet; thence South 65*37'44” East, 20.00 feet; thence South 24°22’16” West, 33.00 feet; thence South 65°37’44” East, 68.97 feet to the beginning of a curve concave southerly having a radius of 325.00 feet; thence southeasterly 44.19 feet through a central angle of 07*47'28”; thence South 57°50’ 15’ East, 25.21 feet; thence North 32°09’45” East, 5.00 feet; thence South 57*50'15” East, 10.00 feet; thence South 32°09’45” West, 5.00 feet; thence South 57*50'15” East, 33.40 feet to the beginning of a non-tangent curve concave southwesterly having a radius of 335.00 feet, from which point the radius bears South 43°55’48” West; thence southerly along the arc of said curve 54.96 feet through a central angle of 09°24’00”; thence South 25°59’14” East, 57.73 feet to a point in the westerly line of that certain 72.14 acre tract granted to Manuel F. Escover by deed dated November 27, 1922, filed for record in Book 566 of Deeds at Page 403 in said Recorder's office, from which point an iron pipe in monument box located at the southerly terminus of that certain course shown as “N 30°09’05” W, 240.63”” on sheet 4 of said Record of Survey bears South 16°54’19” East, 167.68 feet; thence along said westerly line South 23°40’51” West, 38.50 feet to an iron pipe set at the southwesterly corner of said 72.14 acre tract; said corner being further described as

ITEM NO. 7.

LEGAL DESCRIPTION (cont.)
Shannon Road Grant of Right of Way
lying in the center of Shannon Road; thence along the southwest line of said lands of Elam et. al., said southwest line also being the centerline of Shannon Road, the following courses and distances, each as shown on that certain map entitled “Record of Survey of a portion of Shannon Road” filed for record May, 28, 2024 in Book 962 of Maps at Page 10 in said Recorder's office, North 24°21'16” West, 20.92 feet to the beginning of a curve concave southwesterly having a radius of 285.00 feet; thence northwesterly along the arc of said curve 214.93 feet through a central angle of 43°12’32”; thence North 67°33’47” West, 69.26 feet to the beginning of a curve concave northerly having a radius of 500.00 feet; thence northwesterly along the arc of said curve 25.95 feet through a central angle of 02°58’26”; thence North 64°35’21” West, 150.28 feet to the beginning of a curve concave southerly having a radius of 750.00 feet; thence westerly along the arc of said curve 90.05 feet through a central angle of 06°52’46”; thence North 71°28’07” West, 42.02 feet to the beginning of a curve concave northerly having a radius of 360.00 feet; thence northwesterly along the arc of said curve 161.26 feet through a central angle of 25°39’54”; thence North 45°48’13” West, 199.08 feet to the beginning of a curve concave southwesterly having a radius of 2,500.00 feet; thence northwesterly along the arc of said curve 127.44 feet through a central angle of 02°55’14”; thence leaving said centerline of Shannon Road North 41*16'33” East, 20.00 feet to the point of beginning.

Containing 29,807 square feet, more or less.

Bearings used in this description are based upon the California Coordinate System of 1983 (CCS83), Zone 3.

Prepared under the direction of:

Charles M. Weakley, L.S. 6421

ITEM NO. 7.

Point of Beginning
DATUM NOTE:

Bearings shown are based upon the
California Coordinate System of 1983
(CCS1983), Zone 3, epoch 2021.3.

Point of JS Commencement, "Sao, € Qs e Fnd. monument > “OX SO per R-1
N: 1,907,166.93
E: 6,145,747.40 a
New R/W Line
LEGEND Cl or L1
Rad R-1
See curve or line data table Occupational € Radial Bearing per 2023 Survey

Bk. 422 Maps, Pg. 39-46 Deed Reference) xs
EXHIBIT B: ~
Plat to Accompany Legal Description
GRAPHIC SCALE ~ 60 0 ee 玫 aa 1inch = 60 ft. ON MOUNTAIN PACIFIC COS SURVEYS 1735 Enterprise Dr, Suite 109 PH (707) 425-6234

CURVE DATA TABLE
NO. DELTA LENGTH RADIUS
Ci 08° 34' 21" 74.81' 500.00" C2 16° 14' 09" 99.18' 350.00' C3 05° 52 20" 38.43' 375.00'

LINE DATA TABLE
NO. BEARING DISTANCE L1 NO7” 12 24"W 26.58' L2 S55° 48' 03"E 31.91' L3 $48” 26' 38"E 45.97' L4 $71° 30' 03"E 57.32' LS S65” 37' 44"E 153.47' 123 N71° 28 07"W 42.02' 124 N41° 16' 33"E 20.00' Right of Way

SO
(Property Line per 、 4760 OR
29,807: sq. ft.

Fairfield, CA 94533 FAX (707) 425-1969 Scale: 1"=60' | Date: April 19, 2024 | Proj. No. 521058 | Sheet No.: 1 of 2 |

ITEM NO. 7.

BEARING DISTANCE

5.00'

9.00'

5.00'

33.94'

33.00'

20.00'

33.00'

68.97' 25.21'

5.00'

10.00'

5.00'

33.40'

57.73 167.68'

38.50'

20.92'

42.02'

N24° 22 16"E
S65” 37' 44"E
$24” 22 16"W
$65° 37' 44"E
N24° 22 16"E
S65” 37' 44"E
$24” 22 16"W
S65” 37' 44"E
557” 50' 15"E
N32° 09' 45"E
557” 50' 15"E
$32” 09' 45"W
557” 50' 15"E
$25° 59' 14"E
$16° 54' 19"E
$23° 40 51"W
N24° 21' 16"W
N71° 28' 07"W
Occupational q
per 2023 Survey
(Property Line per Deed Reference)
L9 L10 L11 L12 L13
L14
L15
L16 L17 L18 L19 L20 L21 L22
L23
LEGEND
ClorLi
Rad
R-1

See curve or line data table
Radial Bearing
Bk. 422 Maps, Pg. 39-46

NO.

C3
C4
C5
C6
DELTA
05° 52' 20"
07° 47' 28"
09° 24' 00"
02° 58' 26"
LENGTH

38.43'

44.19'

54.96' 25.95'
RADIUS
375.00'
325.00'
335.00' 500.00'

EXHIBIT B
Plat to Accompany Legal Description
GRAPHIC SCALE 0 PN MOUNTAIN PACIFIC CO" SURVEYS 1735 Enterprise Dr, Suite 109 PH (707) 425-6234 60 60 1 inch = 60 ft.

NJ Right of Way
29,807: sq. ft.

New R/W Line
Fnd. monument
per R-1
N: 1,906,431.20
E: 6,146,674.22
Fairfield, CA 94533 FAX (707) 425-1969 Scale: 1"=60' | Date: April 19, 2024 | Proj. No. 521058 | Sheet No.: 2 of 2

ITEM NO. 7.

PREPARED BY: Jamie Field
Chief of Police
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/19/2024
ITEM NO: 8
DATE: November 13, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Approve the Youth Commission Work Plan for School Year 2024/25 RECOMMENDATION:

Approve the Youth Commission work plan for school year 2024/25.

BACKGROUND:

The purpose of the Youth Commission is to advise the Town Council on matters pertaining to issues involving the youth of Los Gatos, including studying problems, activities, and other issues of concern to youth. The existence of the Youth Commission helps to foster and encourage civic and neighborhood pride and a sense of identity through the knowledge, understanding, and increased involvement of the Town’s youth in the Town’s present and future municipal affairs.

The Los Gatos Youth Commission operates under the provisions of Town Resolution 2018-008 adopted by the Council in March 2018. This Commission establishes a formal body by which the youth of Los Gatos have a voice in the community.

The Youth Commission consists of twenty students who are entering grades 8 through 12.

Members serve a two-year term unless entering grade 12 or are first-time appointees, in which case they would serve a term of one year. A Chair and Vice-Chair have been nominated at the September meeting. The Commission appointed one primary Town Commission liaison and at least one alternate for the following:

1. Arts and Culture Commission

2. Complete Streets and Transportation Commission

3. Community and Senior Services Commission

4. Library Board

ITEM NO. 8.

PAGE 2 OF 3
SUBJECT: Review the Youth Commission Work Plan for School Year 2024/25 DATE: November 13, 2024

5. Diversity, Equity and Inclusion

6. Parks Commission
BACKGROUND (continued):

The Commission liaisons then provide a monthly report to the Youth Commission and represent a youth voice and vote in the various Board and Commission meetings.

The Youth Commission meetings are on the second Tuesday of each month at 7:00 p.m. from September through June. The Police Chief serves as the staff liaison to the Commission with support from Executive Assistant Claudia Martinez.

DISCUSSION:

The 2024/25 school year Youth Commission met in September with emphasis on assigning roles, Commission liaisons, and discussions on school year priorities for the ten Youth Commission Meetings according to the current Resolution.

Traditionally, the Youth Commission has focused considerable work on events, outreach, and ordinances to include the Social Host Ordinance, Smoking Ordinance, and E-Bike Ordinance.

Given the volume of work and required staff support, the Youth Commission will not be identifying an ordinance in 2024/25, rather they will continue efforts of magnifying awareness of historical ordinances they have worked on, a couple of events in alignment with Council priority topics and updating the Youth Commission Resolution.

Collaboration will occur with the Office of the Chief and legal counsel to evaluate introducing the use of a hold harmless form for all Youth Commissioners. The intent is to have a form completed by a Youth Commissioners parent or legal guardian so that events that occur after hours will not necessitate staff to remain for the entirety of the proposed events.

Four Ad Hoc Committees were established to address and take the lead on work items outlined in the Youth Commission Work Plan shown in Table 1. The Ad Hoc Committees consist of the following.

1. Traffic Safety

2. Environmental

3. Community Outreach

4. Teen Wellness
Table 1. Youth Commission Work Plan for School Year 2024/25 Work Item Proposed Commission Approach
Pedestrian Crossing
(Traffic Safety Ad-Hoc)
 Solicit input from students on the safety of street crossings near LGHS and the Civic Center

ITEM NO. 8.

PAGE 3 OF 3
SUBJECT: Review the Youth Commission Work Plan for School Year 2024/25 DATE: November 13, 2024
 Research cost-effective solutions to consider bringing to CSTC and Council
 Use MOSAIC or other virtual platforms on school
campuses for e-bike safety and ordinance awareness
Expand the Straw
Ordinance Awareness
(Environmental Ad-Hoc)
 Awareness video for downtown businesses that are complying with the ordinance.
 Develop digital flyers for Town Social Media talk to businesses and assist them in their compliance
SNAP / Spring into Green
(Community Outreach
Ad-Hoc)
 Spread awareness for SNAP and as well as promoting inclusivity within our community
 Provide outreach materials on recent YC supported
Ordinances, work plan related materials, and develop
a SNAP based activity.

Children’s Holiday
Parade
(Community Outreach
Ad-Hoc)
 Participate in the Los Gatos Children’s Holiday Parade by decorating and riding in a float or walking to bring awareness and recruitment for succession to the Youth Commission.

Anti-Nicotine Campaign:

Education & Prevention
(Teen Wellness Ad-Hoc)
 Identify education, training, and prevention program and materials for local LG schools. Focus to be on vape devices  Fentanyl outreach and educational opportunities to also be evaluated.

Update Youth
Commission Resolution
Make recommendations on the following:
 Number of members that make up the Youth Commission
 Length of Youth Commission term
 Attendance requirements
 Months that the Youth Commission formally meets
 Voting member vs. Liaison to adult commissions
CONCLUSION:

The Youth Commission will provide a year-end concluding presentation in June 2024 that will outline the accomplishments from the work plan as well as identify an Environmentally Friendly Business and a Youth Friendly Business.

FISCAL IMPACT:

The fiscal impact associated with this work plan will stay within the annual Commission budget of $2,500 and follow the Town Purchasing Policy.

ENVIRONMENTAL ASSESSMENT:

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

ITEM NO. 8.
2024-2025
@losgatosyouthcommission
ATTACHMENT 1

ITEM NO. 8.

Chair
Pravin Balasingam
Vice Chair
Ryan Idemoto

ITEM NO. 8.

Community Outreach
Events in Chronological Order
• Children’s Christmas Parade
o December
• Easter SNAP Cookie Decorating/Spring into
Green
o April
Environmental
Expanding Plastic Straw Ordinance Awareness
• Videos featuring businesses that comply
with the ordinance
• Digital flyers for social media and town
newsletter
• Talk to businesses and assist them in
their efforts with compliance
Teen Wellness
Anti Nicotine Campaign - Video/Outreach
• Video instruction like last year’s fentanyl
outreach
• Instruct teens about the dangers of
nicotine in JUULS, vapes, etc. but through
MOSAIC videos to reach a bigger crowd
• Work with LG High sources of strength
team
Traffic Safety
Pedestrian Crossings (Phases)
• Solicit input from students on the safety
of street crossings near libraries, schools,
etc.
• Research cost-effective solutions
• Make recommendations to the Town
Council, school boards, and/or CSTC Page 141
ITEM NO. 8.

QUESTIONS

ITEM NO. 8.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/19/2024
ITEM NO: 9
DATE: November 13, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Consider and Provide Direction to Staff regarding the Finance Commission’s Recommendation that the Town Council Engage a Professional Consulting Firm to Prepare a Comprehensive Fiscal Impact Analysis, Including Scenario Sensitivity Analysis, with Risks and Opportunities, which will Evaluate the Potential Fiscal Impact of Planned Growth
RECOMMENDATION:

Consider and provide direction to staff regarding the Finance Commission’s recommendation that the Town Council engage a professional consulting firm to prepare a comprehensive fiscal impact analysis, including scenario sensitivity analysis, with risks and opportunities, which will evaluate the potential fiscal impact of planned growth.

BACKGROUND:

At the August 5, 2024, Finance Commission meeting, the Finance Commission expressed interest in recommending to the Town Council that it engage a professional consulting firm to prepare a comprehensive fiscal impact analysis, including scenario sensitivity analysis, with risks and opportunities, which will evaluate the potential fiscal impact of planned growth (including the recently filed SB 330/Builder’s Remedy proposals).

The Finance Commission passed such a motion at its August 5, 2024, meeting; however, after further discussion, it was determined that to be consistent with the Brown Act the item needed to be considered at the September 9, 2024, Finance Commission meeting. The Finance Commission passed such a motion at its September 9, 2024, meeting.

ITEM NO. 9.

PAGE 2 OF 2
SUBJECT: Fiscal Analysis for Planned Growth
DATE: November 13, 2024
DISCUSSION:

This item has been agendized to allow the Town Council to discuss the Finance Commission’s recommendation and provide direction to staff on the next steps.

If the Town Council determines that preparation of a comprehensive fiscal impact analysis is appropriate, then staff will prepare and issue a Request for Proposals.

If the Town Council has any specific direction on the scope of the fiscal analysis to include, beyond what is included in the Finance Commission’s recommendation, staff requests discussion and direction on those topics.

CONCLUSION:

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

FISCAL IMPACT:

The fiscal impact, or the cost to prepare the fiscal analysis, will be determined following the receipt and review of proposals from qualified consulting firms. Staff will come back to the Council with the necessary budget action to fund the fiscal analysis.

ENVIRONMENTAL ASSESSMENT:

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

ITEM NO. 9.

PREPARED BY: Mike Vroman
Senior Traffic Engineer
Reviewed by: Town Manager, Assistant Town Manager, PPW Director, 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: 11/19/2024
ITEM NO: 10
DATE: November 14, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Consider the Following Actions Related to Certain Sections of Blossom Hill Road:
a) Accept the 2023 Engineering and Traffic Survey Update; and b) Introduce an Ordinance Amending Section 15.30.235 of the Town Code Establishing Speed Limits
Ordinance Title: An Ordinance of the Town Council of the Town of Los Gatos Amending Section 15.30.235, “Establishing Speed Limits on Certain Streets,” of the Town Code Establishing Speed Limits
RECOMMENDATION:

Consider the following actions related to Certain Sections of Blossom Hill Road:
a) Accept the 2023 Engineering and Traffic Survey Update; and b) Introduce an Ordinance Amending Section 15.30.235 of the Town Code Establishing Speed Limits (Attachment 2).

BACKGROUND:

Speed zones (other than statutory speed limits) are established by an engineering and traffic survey (E&TS) that has been performed in accordance with standard traffic engineering practices and in compliance with the California Vehicle Code (CVC) and the California Manual on Uniform Traffic Control Devices (CAMUTCD). The CVC requires engineering and traffic surveys to be completed at least once every five, seven, or fourteen years to support radar enforcement of prima facie speed limits (e.g., speed limits that are not statutory as noted above). Attachment 3 is a detailed description of the methods by which speed limits are set and the associated legal standards.

ITEM NO. 10.

PAGE 2 OF 3
SUBJECT: Accept Engineering and Traffic Survey Update and Introduce an Ordinance Amending Section 15.30.235 of the Town Code to Modify Speed Limit on Certain Sections of Blossom Hill Road
DATE: November 14, 2024
DISCUSSION:

A summary table of the current speed limits and updates proposed as part of this action is in Attachment 4. During the latest E&TS, the speed on three road segments along Blossom Hill Road resulted in a recommendation for a lower speed limit as described below.

Blossom Hill Road from Camino Del Cerro to the East Town Limits – Recent changes to CVC Section 40802 allow an E&TS to be extended from ten years to fourteen years if no significant change has occurred to the character of the roadway. Therefore, the 2013 E&TS for this segment is valid through 2027. It is recommended that this segment of Blossom Hill Road remain posted at 35 mph (Attachment 5).

Blossom Hill Road – North Santa Cruz Avenue/Winchester Boulevard to Camino Del Cerro – This segment is currently posted at 35 mph. Recent bikeway improvements as well as lane reductions along this section of Blossom Hill Road (BHR) are considered a significant change and necessitated new engineering and traffic surveys for the following street segments:
 BHR from Santa Cruz Avenue/Winchester Boulevard to Highway 17 (Attachment 6),  BHR from Los Gatos Boulevard to State Route 17 (Attachment 7), and  BHR from Los Gatos Boulevard to Camino Del Cerro (Attachment 8).

These sections of Blossom Hill Road are adjacent to facilities that generate high concentrations of bicyclists or pedestrians, especially those from vulnerable groups such as children and seniors. The attached engineering and traffic surveys justify the reduction of the posted speed limit from 35 mph to 30 mph in accordance with CVC 627, 22358.7, and 22358.8. This recommendation requires a modification to Section 15.30.235 of the Town Code as proposed in Attachment 2.

Staff believes that based on the results of the engineering and traffic surveys, these speed limits will facilitate the orderly movement of vehicular traffic and are reasonable and safe. The California Vehicle Code specifies prima facie speed limits which shall be effective when appropriate signs giving notice thereof, as necessary, are erected upon the street.

Council approval of the current Engineering and Traffic Survey Update is required before the document can be sent to the Municipal and Juvenile Courts for “Judicial Notice.” Judicial Notice is where the court recognizes the engineering and traffic surveys as containing facts that are self-evident, and no additional speed limit study evidence is necessary in a particular speed violation case.

ITEM NO. 10.

PAGE 3 OF 3
SUBJECT: Accept Engineering and Traffic Survey Update and Introduce an Ordinance Amending Section 15.30.235 of the Town Code to Modify Speed Limit on Certain Sections of Blossom Hill Road
DATE: November 14, 2024
CONCLUSION:

The speed limits along Blossom Hill Road between Santa Cruz Avenue/Winchester Boulevard and Camino Del Cerro should be approved at 30 mph based on the attached Engineering and Traffic Surveys. Staff recommends Town Council introduce an Ordinance Amending Section

15.30.235 of the Town Code Establishing Speed Limits to reduce the speed limit along the identified sections of Blossom Hill Road from 35 mph to 30 mph. Should the Council approve the introduction of the ordinance, staff will bring an item back to the Town Council at the December 3, 2024, Town Council meeting for a second reading of the ordinance. Following the second reading, appropriate signs will be posted and the Police Department may legally enforce the revised speed limits using radar.

COORDINATION:

This report was coordinated with the Town Attorney’s Office and Police Department.

FISCAL IMPACT:

Changing the speed limit on Blossom Hill Road would require the posting of new speed limit signage. There is a need to replace eight (8) 35-mile-per-hour (mph) signs with 30 mph signs.

The cost to replace the signs is approximately $300 per sign for a total cost of $2,400 and the Adopted Fiscal Year (FY) 2024/25 Parks and Public Works Operating Budget (Streets) includes sufficient funds to cover the cost.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Revised Town Ordinance Amending Section 15.30.235 of the Town Code Establishing Speed Limits – Redline

2. Revised Town Ordinance Amending Section 15.30.235 of the Town Code Establishing Speed Limits – Clean

3. Engineering and Regulatory Framework for Setting Speed Limits

4. Current Engineering and Traffic Survey Update Summary Table

5. E&TS for Blossom Hill Road from Camino Del Cerro to the East Town Limits

6. E&TS for Blossom Hill Road from Santa Cruz Ave/Winchester Boulevard to Highway 17

7. E&TS for Blossom Hill Road from Los Gatos Boulevard to State Route 17

8. E&TS for Blossom Hill Road from Los Gatos Boulevard to Camino Del Cerro

ITEM NO. 10.
1 of 6
Draft Ordinance Date Adopted

DRAFT ORDINANCE

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING SECTION 15.30.235, “ESTABLISHING SPEED LIMITS ON CERTAIN STREETS,” OF THE TOWN CODE ESTABLISHING SPEED LIMITS
WHEREAS, the Town recently completed a “road diet” project along Blossom Hill Road between Camilla Terrace and Cherrystone Drive to enhance bicycle and pedestrian safety along the corridor in the vicinity of Blossom Hill Elementary School; WHEREAS, the project resulted in a reduction of vehicle travel lanes along Blossom Hill Road between Camilla Terrace and Cherrystone Drive;
WHEREAS, the Town conducted an Engineering Traffic Survey (ETS) to evaluate the project’s impact on the travel speeds along the Blossom Hill Road corridor between Los Gatos Boulevard and Camino Del Cerro in conformance with California Vehicle Code Section 40802 which requires the reevaluation of non-statutory speed limits on segments of roadways that have undergone significant changes since the last review, such as the addition or elimination of parking or driveways, changes in the number of travel lanes, changes in the configuration of bicycle lanes, changes in traffic control signal coordination, or significant changes in traffic volumes; WHEREAS, the ETS determined that the speed limits along this segment of Blossom Hill Road could be reduced from 35 mph to 30 mph;
WHEREAS, the Parks and Public Works Engineering Division also has an ETS on file that justifies the reduction of speed limits along Blossom Hill Road between Santa Cruz Avenue/Winchester Boulevard and Los Gatos Boulevard from 35 mph to 30 mph; WHEREAS, California Vehicle Code Section 22357 states that, whenever a local authority determines upon the basis of an engineering and traffic survey (ETS) that a speed greater than 25 miles per hour would facilitate the orderly movement of vehicular traffic and would be reasonable and safe upon any street other than a state highway otherwise subject to a prima facie limit of 25 miles per hour, the local authority may, by ordinance, determine and declare a prima facie speed limit of 30, 35, 40, 45, 50, 55, or 60 miles per hour or a maximum speed limit of 65 miles per hour, whichever is found most appropriate to facilitate the orderly movement of traffic and is reasonable and safe;
WHEREAS, California Vehicle Code Section 22358.7 authorizes the Town to reduce the speed limit by an additional 5 mph if the roadway is adjacent to any land or facility that generates high concentrations of bicyclists or pedestrians, especially those from vulnerable groups such as children, seniors, persons with disabilities, and the unhoused; and ATTACHMENT 1

ITEM NO. 10.
2 of 6
Draft Ordinance Date Adopted
WHEREAS, the Town Council, acting as the local authority, may reduce the speed limit along Blossom Hill Road between Santa Cruz Avenue/Winchester Boulevard and Camino Del Cerro from 35 mph to 30 mph by ordinance.

NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as follows:

SECTION I. Section 15.30.235, “Establishing Speed Limits on Certain Streets,” of the Town Code is amended to read as follows:

Sec. 15.30.235. - Establishing speed limits on certain streets.

It is hereby determined upon the basis of an engineering and traffic survey that the following speed limits will facilitate the orderly movement of vehicular traffic and are reasonable and safe and are declared the prima facie speed limits and shall be effective when appropriate signs giving notice thereof are erected upon the street.

Prima Facie Speed Limit Declared 15 mph
Charles Street, from Bella Vista Avenue to Los Gatos Boulevard Marchmont Drive, from Hilow Road to east end
North Santa Cruz Avenue, from Main Street to Los Gatos-Saratoga Road Prima Facie Speed Limit Declared 20 mph
Bella Vista Avenue, from New York Avenue to Caldwell Avenue Cleland Avenue, from Reservoir Road to Kimble Avenue
College Avenue, from East Main Street to Prospect Avenue Cypress Way, from Spring Street to east end
Foster Road, from Johnson Avenue to south Town limits
Jackson Street, from Oak Hill Way to Central Avenue
Kennedy Road, from one thousand nine hundred (1,900) feet east of Forrester Road to east Town limits
Kimble Avenue, from Cleland Avenue to Prospect Avenue
Phillips Avenue, from Cypress Way to South Kennedy Road Reservoir Road, from Cleland Avenue to Prospect Avenue
University Avenue from Main Street to Mullen Avenue

ITEM NO. 10.
3 of 6
Draft Ordinance Date Adopted
Villa Avenue, from Jackson Street to Fiesta Way
Prima Facie Speed Limit Declared 25 mph
Andrews Street, from University Avenue to west Town limits Bicknell Road, from Quito Road to Montclair Road
Capri Drive, from north Town limits to Knowles Drive
Carlton Avenue, from Los Gatos-Almaden Road to National Avenue Cherry Blossom Lane, from Shannon Road to Blossom Hill Road Glenridge Avenue, from Bachman Avenue to Pennsylvania Avenue Harwood Road, from Blossom Hill Road to Town limits
Hernandez Avenue, from Glen Ridge Avenue to Town limits Hilow Road, from Cardinal Lane to Shannon Road
Loma Alta Avenue, from Los Gatos Boulevard to Cypress Way Los Gatos Boulevard, from Alpine Avenue to Roberts East Road East Main Street, from Route 17 to Alpine Avenue
West Main Street, from Broadway to Route 17
Massol Avenue, from Saratoga Avenue to Bean Avenue
Montclair Road, from Quito Road to Bicknell Road
More Avenue, from Pollard Road to Bicknell Road
National Avenue, from Samaritan Drive to Los Gatos-Almaden Road Nino Avenue, from Los Gatos Boulevard to west end
Oka Road, from Lark Avenue to Mozart Avenue
Old Blossom Hill Road from west end to east end
West Parr Avenue, from Pollard Road to Capri Drive
Pennsylvania Avenue, from Bayview Avenue to Wissahickon Avenue Quito Road, from Pollard Road to Bicknell Road
North Santa Cruz Avenue, from Los Gatos-Saratoga Road to Blossom Hill Road

ITEM NO. 10.
4 of 6
Draft Ordinance Date Adopted
South Santa Cruz Avenue, from Main Street to SR 17 ramp Tait Avenue, from West Main Street to Saratoga Avenue
University Avenue, from Mullen Avenue to Blossom Hill Road Wedgewood Avenue, from Pollard Road to Wimbledon Drive
Westhill Drive, from Blossom Hill Road to Bacigalupi Drive Wimbledon Drive, from Winchester Boulevard to Wedgewood Avenue Winchester Boulevard, from Blossom Hill Road to east Vineland Avenue All remaining residential and commercial streets
Prima Facie Speed Limit Declared 30 mph
Blossom Hill Road, from North Santa Cruz Avenue/Winchester Boulevard to Camino Del Cerro
Hicks Road, from Shannon Road to north Town limits
Kennedy road, from Los Gatos Boulevard to one thousand nine hundred (1,900) feet east of Forrester Road
Knowles Drive from Winchester Boulevard to Dell Avenue
Lark Avenue, from Winchester Boulevard to Los Gatos Boulevard Shannon Road, from Los Gatos Boulevard to Short Road
Shannon Road, from Short Road to Hicks Road
Short Road, from Shannon Road to Old Blossom Hill Road
Prima Facie Speed Limit Declared 35 mph
Blossom Hill Road, from North Santa Cruz Avenue Camino Del Cerro to Leigh Avenue east Town limits
Knowles Drive, from Pollard Road to Winchester Boulevard Los Gatos-Almaden Road from Los Gatos Boulevard to east Town limits Los Gatos Boulevard, from Roberts East Road to Samaritan Drive Los Gatos-Saratoga Road from Los Gatos Boulevard to Alberto Way Pollard Road, from Quito Road to Knowles Drive

ITEM NO. 10.
5 of 6
Draft Ordinance Date Adopted
Union Avenue, from Blossom Hill Road to Los Gatos-Almaden Road University Avenue, from Blossom Hill Road to Lark Avenue Winchester Boulevard, from Vineland Avenue to Knowles Drive Prima Facie Speed Limit Declared 40 mph
Winchester Boulevard, from Knowles Drive to north Town limits (Code 1968, § 16-43.2; Ord. No. 1810, § I, 2-5-90; Ord. No. 1866, §§ I, II, 9-3-91; Ord. No. 2028, §§ I, II, 2-18-97; Ord. No. 2119, §§ I, II, 10-20-03; Ord. No. 2223, §§ I, II, 11-18-13) SECTION II. Severability.

In the event that a court of competent jurisdiction holds any Section, subsection, paragraph, sentence, clause, or phrase in this Ordinance unconstitutional, preempted, or otherwise invalid, the invalid portion shall be severed from this Section and shall not affect the validity of the remaining portions of this Section. The Town hereby declares that it would have adopted each Section, subsection, paragraph, sentence, clause, or phrase in this Section irrespective of the fact that any one or more Sections, subsections, paragraphs, sentences, clauses or phrases in this Section might be declared unconstitutional, preempted, or otherwise invalid.

SECTION III. CEQA.

Adopting this Ordinance is not a project subject to CEQA because it can be seen with certainty that reducing the speed limit by five miles per hour will not impact the environment (CEQA Guidelines Section 15378).

SECTION IV. Publication.

In accordance with Section 63937 of the Government Code of the State of California, this Ordinance takes effect 30 days from the date of its passage. The Town Council hereby directs the City Clerk to cause this Ordinance or a summary thereof to be published or posted in accordance with Section 36933 of the Government Code of the State of California.

ITEM NO. 10.
6 of 6
Draft Ordinance Date Adopted
SECTION V. Effective Date.

This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the ___ day of _____ 20 , and adopted by the Town Council of the Town of Los Gatos at its regular meeting on the ____ day of _____ 20 , by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:
_______________________________

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
ATTEST:
___________________________________

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA

ITEM NO. 10.
1 of 6
Draft Ordinance Date Adopted

DRAFT ORDINANCE

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING SECTION 15.30.235, “ESTABLISHING SPEED LIMITS ON CERTAIN STREETS,” OF THE TOWN CODE ESTABLISHING SPEED LIMITS
WHEREAS, the Town recently completed a “road diet” project along Blossom Hill Road between Camilla Terrace and Cherrystone Drive to enhance bicycle and pedestrian safety along the corridor in the vicinity of Blossom Hill Elementary School; WHEREAS, the project resulted in a reduction of vehicle travel lanes along Blossom Hill Road between Camilla Terrace and Cherrystone Drive;
WHEREAS, the Town conducted an Engineering Traffic Survey (ETS) to evaluate the project’s impact on the travel speeds along the Blossom Hill Road corridor between Los Gatos Boulevard and Camino Del Cerro in conformance with California Vehicle Code Section 40802 which requires the reevaluation of non-statutory speed limits on segments of roadways that have undergone significant changes since the last review, such as the addition or elimination of parking or driveways, changes in the number of travel lanes, changes in the configuration of bicycle lanes, changes in traffic control signal coordination, or significant changes in traffic volumes; WHEREAS, the ETS determined that the speed limits along this segment of Blossom Hill Road could be reduced from 35 mph to 30 mph;
WHEREAS, the Parks and Public Works Engineering Division also has an ETS on file that justifies the reduction of speed limits along Blossom Hill Road between Santa Cruz Avenue/Winchester Boulevard and Los Gatos Boulevard from 35 mph to 30 mph; WHEREAS, California Vehicle Code Section 22357 states that, whenever a local authority determines upon the basis of an engineering and traffic survey (ETS) that a speed greater than 25 miles per hour would facilitate the orderly movement of vehicular traffic and would be reasonable and safe upon any street other than a state highway otherwise subject to a prima facie limit of 25 miles per hour, the local authority may, by ordinance, determine and declare a prima facie speed limit of 30, 35, 40, 45, 50, 55, or 60 miles per hour or a maximum speed limit of 65 miles per hour, whichever is found most appropriate to facilitate the orderly movement of traffic and is reasonable and safe;
WHEREAS, California Vehicle Code Section 22358.7 authorizes the Town to reduce the speed limit by an additional 5 mph if the roadway is adjacent to any land or facility that generates high concentrations of bicyclists or pedestrians, especially those from vulnerable groups such as children, seniors, persons with disabilities, and the unhoused; and ATTACHMENT 2

ITEM NO. 10.
2 of 6
Draft Ordinance Date Adopted
WHEREAS, the Town Council, acting as the local authority, may reduce the speed limit along Blossom Hill Road between Santa Cruz Avenue/Winchester Boulevard and Camino Del Cerro from 35 mph to 30 mph by ordinance.

NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos as follows:

SECTION I. Section 15.30.235, “Establishing Speed Limits on Certain Streets,” of the Town Code is amended to read as follows:

Sec. 15.30.235. - Establishing speed limits on certain streets.

It is hereby determined upon the basis of an engineering and traffic survey that the following speed limits will facilitate the orderly movement of vehicular traffic and are reasonable and safe and are declared the prima facie speed limits and shall be effective when appropriate signs giving notice thereof are erected upon the street.

Prima Facie Speed Limit Declared 15 mph
Charles Street, from Bella Vista Avenue to Los Gatos Boulevard Marchmont Drive, from Hilow Road to east end
North Santa Cruz Avenue, from Main Street to Los Gatos-Saratoga Road Prima Facie Speed Limit Declared 20 mph
Bella Vista Avenue, from New York Avenue to Caldwell Avenue Cleland Avenue, from Reservoir Road to Kimble Avenue
College Avenue, from East Main Street to Prospect Avenue Cypress Way, from Spring Street to east end
Foster Road, from Johnson Avenue to south Town limits
Jackson Street, from Oak Hill Way to Central Avenue
Kennedy Road, from one thousand nine hundred (1,900) feet east of Forrester Road to east Town limits
Kimble Avenue, from Cleland Avenue to Prospect Avenue
Phillips Avenue, from Cypress Way to South Kennedy Road Reservoir Road, from Cleland Avenue to Prospect Avenue
University Avenue from Main Street to Mullen Avenue

ITEM NO. 10.
3 of 6
Draft Ordinance Date Adopted
Villa Avenue, from Jackson Street to Fiesta Way
Prima Facie Speed Limit Declared 25 mph
Andrews Street, from University Avenue to west Town limits Bicknell Road, from Quito Road to Montclair Road
Capri Drive, from north Town limits to Knowles Drive
Carlton Avenue, from Los Gatos-Almaden Road to National Avenue Cherry Blossom Lane, from Shannon Road to Blossom Hill Road Glenridge Avenue, from Bachman Avenue to Pennsylvania Avenue Harwood Road, from Blossom Hill Road to Town limits
Hernandez Avenue, from Glen Ridge Avenue to Town limits Hilow Road, from Cardinal Lane to Shannon Road
Loma Alta Avenue, from Los Gatos Boulevard to Cypress Way Los Gatos Boulevard, from Alpine Avenue to Roberts East Road East Main Street, from Route 17 to Alpine Avenue
West Main Street, from Broadway to Route 17
Massol Avenue, from Saratoga Avenue to Bean Avenue
Montclair Road, from Quito Road to Bicknell Road
More Avenue, from Pollard Road to Bicknell Road
National Avenue, from Samaritan Drive to Los Gatos-Almaden Road Nino Avenue, from Los Gatos Boulevard to west end
Oka Road, from Lark Avenue to Mozart Avenue
Old Blossom Hill Road from west end to east end
West Parr Avenue, from Pollard Road to Capri Drive
Pennsylvania Avenue, from Bayview Avenue to Wissahickon Avenue Quito Road, from Pollard Road to Bicknell Road
North Santa Cruz Avenue, from Los Gatos-Saratoga Road to Blossom Hill Road

ITEM NO. 10.
4 of 6
Draft Ordinance Date Adopted
South Santa Cruz Avenue, from Main Street to SR 17 ramp Tait Avenue, from West Main Street to Saratoga Avenue
University Avenue, from Mullen Avenue to Blossom Hill Road Wedgewood Avenue, from Pollard Road to Wimbledon Drive
Westhill Drive, from Blossom Hill Road to Bacigalupi Drive Wimbledon Drive, from Winchester Boulevard to Wedgewood Avenue Winchester Boulevard, from Blossom Hill Road to east Vineland Avenue All remaining residential and commercial streets
Prima Facie Speed Limit Declared 30 mph
Blossom Hill Road, from North Santa Cruz Avenue/Winchester Boulevard to Camino Del Cerro
Hicks Road, from Shannon Road to north Town limits
Kennedy road, from Los Gatos Boulevard to one thousand nine hundred (1,900) feet east of Forrester Road
Knowles Drive from Winchester Boulevard to Dell Avenue
Lark Avenue, from Winchester Boulevard to Los Gatos Boulevard Shannon Road, from Los Gatos Boulevard to Short Road
Shannon Road, from Short Road to Hicks Road
Short Road, from Shannon Road to Old Blossom Hill Road
Prima Facie Speed Limit Declared 35 mph
Blossom Hill Road, from Camino Del Cerro to east Town limits Knowles Drive, from Pollard Road to Winchester Boulevard Los Gatos-Almaden Road from Los Gatos Boulevard to east Town limits Los Gatos Boulevard, from Roberts East Road to Samaritan Drive Los Gatos-Saratoga Road from Los Gatos Boulevard to Alberto Way Pollard Road, from Quito Road to Knowles Drive
Union Avenue, from Blossom Hill Road to Los Gatos-Almaden Road

ITEM NO. 10.
5 of 6
Draft Ordinance Date Adopted
University Avenue, from Blossom Hill Road to Lark Avenue Winchester Boulevard, from Vineland Avenue to Knowles Drive Prima Facie Speed Limit Declared 40 mph
Winchester Boulevard, from Knowles Drive to north Town limits (Code 1968, § 16-43.2; Ord. No. 1810, § I, 2-5-90; Ord. No. 1866, §§ I, II, 9-3-91; Ord. No. 2028, §§ I, II, 2-18-97; Ord. No. 2119, §§ I, II, 10-20-03; Ord. No. 2223, §§ I, II, 11-18-13) SECTION II. Severability.

In the event that a court of competent jurisdiction holds any Section, subsection, paragraph, sentence, clause, or phrase in this Ordinance unconstitutional, preempted, or otherwise invalid, the invalid portion shall be severed from this Section and shall not affect the validity of the remaining portions of this Section. The Town hereby declares that it would have adopted each Section, subsection, paragraph, sentence, clause, or phrase in this Section irrespective of the fact that any one or more Sections, subsections, paragraphs, sentences, clauses or phrases in this Section might be declared unconstitutional, preempted, or otherwise invalid.

SECTION III. CEQA.

Adopting this Ordinance is not a project subject to CEQA because it can be seen with certainty that reducing the speed limit by five miles per hour will not impact the environment (CEQA Guidelines Section 15378).

SECTION IV. Publication.

In accordance with Section 63937 of the Government Code of the State of California, this Ordinance takes effect 30 days from the date of its passage. The Town Council hereby directs the City Clerk to cause this Ordinance or a summary thereof to be published or posted in accordance with Section 36933 of the Government Code of the State of California.

ITEM NO. 10.
6 of 6
Draft Ordinance Date Adopted
SECTION V. Effective Date.

This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the ___ day of _____ 20 , and adopted by the Town Council of the Town of Los Gatos at its regular meeting on the ____ day of _____ 20 , by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:
_______________________________

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
ATTEST:
___________________________________

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA

ITEM NO. 10.

November 14, 2024 ATTACHMENT 3
Attachment 3. Engineering and Regulatory Framework
There are two main types of speed limits in California: maximum speed limits and prima facie speed limits. The maximum limits apply everywhere. They are 65 miles per hour (mph) (or 70 mph if posted) for larger highways and 55 for smaller two-lane roads. The prima facie speed limits are set for other roads and range from 15 to 60 mph. The law sets forth a default prima facie limit (statutory speed limit) of 15 mph for an uncontrolled railroad crossing, approaching an uncontrolled intersection without a clear and unobstructed view, and any alley as well as a default prima facie limit of 25 mph for business and residential districts, school zones and senior zones. Often, these speeds are not reasonable for the prevailing conditions, so jurisdictions are allowed to modify them.

An Engineering and Traffic Study is a required in compliance with CVC 40802 to reevaluate non-statutory speed limits on segments of roadways that have undergone significant changes since the last review, such as the addition or elimination of parking or driveways, changes in the number of travel lanes, changes in the configuration of bicycle lanes, changes in traffic control signal coordination, or significant changes in traffic volumes. If there are no significant changes the speed limit surveys can be completed up to fourteen years from the date of the last survey.

Per CVC 22357, when a local authority determines upon the basis of an engineering and traffic survey that a speed greater than 25 miles per hour would facilitate movement of vehicular traffic and would be reasonable and safe, then the local authority may, by ordinance, determine and declare a different prima facie speed limit. The speed limit can be 30, 35, 40, 45, 50, 55, or 60 miles per hour or a maximum speed limit of 65 miles per hour, depending on what the engineering analysis has determined to be most appropriate to facilitate the orderly movement of traffic and is reasonable and safe. The declared prima facie or maximum speed limit is in effect when appropriate signs giving notice of the speed limit are erected on the street.

The engineering and traffic survey includes an analysis of the prevailing speed of free-flowing vehicles (the speed which 85% of motorists drive at or below on that particular segment, also known as the 85th percentile speed) and considers accident history, traffic and roadside conditions not readily apparent to the driver, and also the safety of bicyclists and pedestrians, with increased consideration for vulnerable pedestrian groups including children, seniors, persons with disabilities, users of personal assistive mobility devices, and the unhoused. In accordance with CVC 22358.6. (a) The Department of Transportation has revised the California Manual on Uniform Traffic Control Devices to require the Department of Transportation or a local authority to round speed limits to the nearest five miles per hour of the 85th percentile of the free-flowing traffic. However, based upon the considerations noted above and in compliance with CVC Sections 627 and 22358.5, The California Manual on Uniform Traffic Control Devices allows the posted speed limit to be reduced by 5 mph.

In summary, we adjust to the nearest 5 mph increment from the 85th percentile speed (i.e., if the 85th percentile is 36 or 37 mph, we round to nearest 5 mph or 35 mph), then based upon the other considerations and engineering judgement we can take an additional 5 mph speed reduction (i.e., from 35 mph to 30 mph).

ITEM NO. 10.

November 14, 2024 ATTACHMENT 3
The Town regularly updates all engineering and traffic surveys to be compliant with State law.

The current 256-page Engineering and Traffic Survey Update is on file in the Parks and Public Works and Police Departments.

ITEM NO. 10.

CURRENT ENGINEERING TRAFFIC SURVEY UPDATE SUMMARY TABLE (PSL = Posted Speed Limit)
Location P S L Recomnd Roadway Segment
1 25 25 Andrews St from University to West Town Limits
2 20 20 Bella Vista Ave from New York Ave to Caldwell Ave 3 25 25 Bicknell Rd from Montclair Rd to Quito Rd
4A 35 30 Blossom Hill Rd (BHR) from LGB to SR 17
4B 35 30 BHR from Santa Cruz Ave/Winchester Blvd to Hwy 17 5 35 30 BHR from LGB to Camino Del Cerro
6 35 35 BHR from Camino Del Cerro to East Town Limits
7 25 25 Capri Dr from Knowles Dr to North Town Limits
8 25 25 Carlton Dr from Gateway Dr to Town Limits
9 25 25 Carlton Dr from LGA Rd to Gateway Dr
10 15 15 Charles Street from LGB to Bella Vista Ave
11 25 25 Cherry Blossom Ln from Shannon Rd to BHR
12 20 20 Cleland Ave from Reservoir Rd to Kimble Ave
13 20 20 College Avenue from East Main Street to Prospect Road 14 20 20 Cypress Way from Spring Street to End
15 20 20 Foster Road from Johnson Avenue to End
16 25 25 Glenridge Drive from Pennsylvania Avenue to Bachman Ave 17 25 25 Harwood Road from Blossom Hill Road to South End 18 25 25 Hernandez Avenue from Glenridge Drive to West Town Limits 19 30 30 Hicks Road from South Town Limits to North Town Limits 20 25 25 Hilow Road from Cardinal Lane to Shannon Road
21 20 20 Jackson Street from Oak Hill Way to Central Avenue 22 30 30 Kennedy Rd from LosGatosBlvd to 1900' East of Forrester Rd 23 20 20 Kennedy Road from 1900 Feet East of Forrester Rd to East Town Limits 24 20 20 Kimble Avenue from Cleland Avenue to Prospect Avenue 25 35 35 Knowles Drive from Pollard Road to Winchester Boulevard 26 30 30 Knowles Drive from Winchester Boulevard to Dell Avenue 27 30 30 Lark Avenue from Winchester Boulevard to Los Gatos Boulevard 28 25 25 Loma Alta Avenue from Los Gatos Boulevard to Cypress Way 29 35 35 Los Gatos Almaden Road from Los Gatos Boulevard to East Town Limits 30 25 25 Los Gatos Boulevard from Alpine Avenue to Roberts Road East 31 35 35 Los Gatos Boulevard from Roberts Road East to North Town Limits 32 35 35 Los Gatos Saratoga Road from Los Gatos Boulevard to SR 17 33 25 25 East Main Street from SR 17 to Alpine Avenue
34 25 25 West Main Street from Bayview Avenue to SR 17
35 15 15 Marchmont Drive from Hilow Road to East End
36 25 25 Massol Avenue from Los Gatos Saratoga Road to Bean Avenue 37 25 25 Montclair Road from Quito Road to Bicknell Road 38 25 25 More Avenue from Bicknell Road to Pollard Road 39 25 25 National Avenue from Los Gatos Almaden Road to Samaritan Drive 40 25 25 Nino Avenue from Los Gatos Boulevard to End
41 25 25 Oka Road from Lark Avenue to Mozart Avenue
42 25 25 Old Blossom Hill Road from West End to East End at Blossom Hill Rd 43 25 25 Pennsylvania Avenue from Wissahickon Avenue to Bayview Drive 44 20 20 Phillips Avenue from Cypress Way to South Kennedy Road 45 35 35 Pollard Road from Quito Road to Burrows Avenue 46 35 35 Pollard Avenue from Burrows Avenue to Knowles Drive 47 25 25 Quito Road from Bicknell Rd to Pollard Rd (City of Saratoga) 48 20 20 Reservoir Road from Cleland Avenue to Prospect Avenue 49 25 25 Santa Cruz Avenue from Main Street to SR 17 Ramp 50 15 15 North Santa Cruz Avenue from Main St to Los Gatos Saratoga Rd 11/1/2024
ATTACHMENT 4

ITEM NO. 10.

CURRENT ENGINEERING TRAFFIC SURVEY UPDATE SUMMARY TABLE (PSL = Posted Speed Limit)
51 25 25 N Santa Cruz Ave fm LG-Saratoga Rd to Vineland Ave(Winchester Blvd) 52 30 30 Shannon Road from Los Gatos Blvd to Short Road 53 30 30 Shannon Road from Short Road to Hicks Road
54 30 30 Short Road from Shannon Road to Old Blossom Hill Road 55 25 25 Tait Avenue from West Main Street to Los Gatos Saratoga Road 56 35 35 Union Avenue from Blossom Hill Road to Los Gatos Almaden Road 57 20 20 University Avenue from East Main Street to Mullen Avenue 58 25 25 University Avenue from Mullen Avenue to Blossom Hill Road 59 35 35 University Avenue from Blossom Hill Road to Lark Avenue 60 20 20 Villa Avenue from Jackson Street to Main Street 61 25 25 Wedgewood Avenue from Pollard Road to Wimbledon Drive 62 25 25 West Parr Avenue from Pollard Road to Capri Drive 63 25 25 Westhill Drive from Blossom Hill Road to Bacigalupi Drive 64 25 25 Wimbledon Drive from Wedgewood Avenue to Winchester Boulevard 65 35 35 Winchester Boulevard from Vineland Avenue to Lark Avenue 66 35 35 Winchester Boulevard from Lark Avenue to Knowles Drive 67 40 40 Winchester Blvd from Knowles Drive to North Town Limits

ITEM NO. 10.
41 Miles Avenue, Los Gatos, California 95031, (408) 399-5770 Fax (408) 354-8529 FROM: Jessy Pu, Town Traffic Engineer, Traffic Engineering Certificate 1581 SUBJECT: Engineering and Traffic Survey Update – Extension from Seven to Ten Years Location #6 – Blossom Hill Road from Camino Del Cerro to East Town Limits DATE: June 25, 2020
In accordance with the California Vehicle Code (CVC) Section 40802, Speed Trap, a posted speed limit must be justified with an engineering and traffic survey that is conducted within seven to ten years prior to the date of the alleged violation.

CVC 40802.(c).(2).(B).(i).
“A particular section of a highway or state highway with a prima facie speed limit that is provided by this code or by local ordinance under paragraph (1) of subdivision (b) of Section 22352, or established under Section 22354, 22357, 22358, or 22358.3, if that prima facie speed limit is not justified by an engineering and traffic survey conducted within one of the following time periods, prior to the date of the alleged violation, and enforcement of the speed limit involves the use of radar or any other electronic device that measures the speed of moving objects:
(I) Except as specified in subclause (II), seven years. (II) If an engineering and traffic survey was conducted more than seven years prior to the date of the alleged violation, and a registered engineer evaluates the section of the highway and determines that no significant changes in roadway or traffic conditions have occurred, including, but not limited to, changes in adjoining property or land use, roadway width, or traffic volume, 10 years.”
Engineer Evaluation
There have been no major roadway improvements or modifications to this roadway section for the past seven years. The roadway configuration, land use, and traffic condition have been reviewed based on field observation and knowledge of traffic flow, roadway improvements, and land use developments. It is determined there have been no significant changes that would necessitate a new engineering and traffic survey.

It is therefore, the posted speed limits are recommended to remain 35 mph until July 9, 2023.

M E M O R A N D U M

PARKS AND PUBLIC WORKS DEPARTMENT
ATTACHMENT 5

ITEM NO. 10.

LOCATION: Blossom Hill Road from Camino Del Cerro to East Town Limits WIDTH: 28 - 60
ADJACENT LAND USE: Residential
CRITICAL SPEED (85TH %TILE) = 41
TWO YEAR ACCIDENT HISTORY:
1/1/2010 to 12/31/2011 - 1 F, 9 IA, 8 NIA, 1 P, 3 B
FIELD

OBSERVATION/

CONDITION

NOT READILY
APPARENT:

Segments of roadway are narrow, unimproved with horizontal and vertical curves over the hills. Pedestrian sidewalks are provided on both sides of the street east of Union Avenue and none west. Residential driveways along the unimproved roadway have restricted visibility. The roadway is frequently used by commute and recreational bicyclists.

Due to the unusual conditions as described above and in compliance with CVC Setions 627, it is recommended that the existing 35 mph speed limits be retained.
# 6
mph
May 02, 2018
LEGEND:

F
IA
NIA
P
B
- Fatal Accident
- Injury Accident
- Non Injury Accident
SB
EB
WB
NB - Northbound
- Southbound
- Eastbound
- Westbound
- Pedestrian Accident
- Bicycle Accident
feet
EB 41 WB mph

ENGINEERING AND TRAFFIC SURVEY

PARKS AND PUBLIC WORKS DEPARTMENT
Engineering Division
EXISTING SPEED LIMITS: 35
RECOMMENDED SPEED LIMITS: 35
RECOMMENDATION:

PACE SPEEDS = 32-41
7/9/2013
mph EB 33-42 WB mph
LENGTH: 5,600 feet
mph
mph
SURVEY DATE:

TRAVEL LANES: Two lanes each direction
Tzching Jessy Pu, TR1581
Licensed by the Board for Professional Engineers and Land Surveyo

ITEM NO. 10.

Bather Belrose Boje, Inc. SPEEDPLOT Program
STREET................ 6 Blk. Blossom Hill Rd
LIMITS................ Camino Del Cerro to East Town Limits DIRECTION(S)..........EB 50TH PERCENTILE SPEED.................37 DATE..................7/9/13 85TH PERCENTILE SPEED.................41 TIME..................12:55 10 MPH PACE SPEED..........32 through 41 POSTED SPEED LIMIT....35 PERCENT IN PACE SPEED.............. 89.0 PERCENT OVER PACE SPEED.............11.0
PERCENT UNDER PACE SPEED............ 0.0
CUM. RANGE OF SPEEDS.................32 to 52
SPEED NO. PCT. PCT. VEHICLES OBSERVED................... 100 ==================== AVERAGE SPEED.......................38.2 32 3 3.0 3.0
33 2 2.0 5.0 +----+----+----+----+----+----+----+----+----+----+ 34 4 4.0 9.0 100 *******************100
35 13 13.0 22.0 - *** -
36 12 12.0 34.0 90 *** 90
37 16 16.0 50.0 C - -
38 8 8.0 58.0 U 80 * 80
39 11 11.0 69.0 M - -
40 11 11.0 80.0 70 * 70
41 9 9.0 89.0 P - -
42 3 3.0 92.0 E 60 * 60
43 0 0.0 92.0 R - -
44 2 2.0 94.0 C 50 * 50
45 1 1.0 95.0 E - -
46 2 2.0 97.0 N 40 40
47 1 1.0 98.0 T - * -
48 1 1.0 99.0 S 30 30
49 0 0.0 99.0 - -
50 0 0.0 99.0 20 * 20
51 0 0.0 99.0 - -
52 1 1.0 100.0 10 * 10
- ** -
0***************** 0
+----+----+----+----+----+----+----+----+----+----+
15 25 35 45 55 65
+----+----+----+----+----+----+----+----+----+----+
20 20
- -
- -
- -
- * -
P 15 * 15
E - * -
R - * * -
C - *** -
E - *** ** -
N 10 *** ** 10
T - *** *** -
S - ******* -
- ******* -
- ******* -
5 ******* 5
- ******** -
- * ********* -
- *********** * * -
- *********** ***** * -
+----+----+----+----+----+----+----+----+----+----+
15 25 35 45 55 65

ITEM NO. 10.

Bather Belrose Boje, Inc. SPEEDPLOT Program
STREET................ 6 Blk. Blossom Hill Rd
LIMITS................ Camino Del Cerro to East Town Limits DIRECTION(S)..........WB 50TH PERCENTILE SPEED.................38 DATE..................7/9/13 85TH PERCENTILE SPEED.................41 TIME..................12:55 10 MPH PACE SPEED..........33 through 42 POSTED SPEED LIMIT....35 PERCENT IN PACE SPEED.............. 87.0 PERCENT OVER PACE SPEED............. 9.0
PERCENT UNDER PACE SPEED............ 4.0
CUM. RANGE OF SPEEDS.................31 to 53
SPEED NO. PCT. PCT. VEHICLES OBSERVED................... 100 ==================== AVERAGE SPEED.......................38.6 31 1 1.0 1.0
32 3 3.0 4.0 +----+----+----+----+----+----+----+----+----+----+ 33 2 2.0 6.0 100 ****************100
34 6 6.0 12.0 - ****** -
35 8 8.0 20.0 90 ** 90
36 6 6.0 26.0 C - * -
37 12 12.0 38.0 U 80 * 80
38 13 13.0 51.0 M - -
39 15 15.0 66.0 70 70
40 12 12.0 78.0 P - * -
41 8 8.0 86.0 E 60 60
42 5 5.0 91.0 R - -
43 1 1.0 92.0 C 50 * 50
44 2 2.0 94.0 E - -
45 2 2.0 96.0 N 40 * 40
46 1 1.0 97.0 T - -
47 0 0.0 97.0 S 30 30
48 0 0.0 97.0 - * -
49 0 0.0 97.0 20 * 20
50 1 1.0 98.0 - -
51 0 0.0 98.0 10 * 10
52 1 1.0 99.0 - ** -
53 1 1.0 100.0 0***************** 0
+----+----+----+----+----+----+----+----+----+----+
15 25 35 45 55 65
+----+----+----+----+----+----+----+----+----+----+
20 20
- -
- -
- -
- -
P 15 * 15
E - * -
R - ** -
C - **** -
E - **** -
N 10 **** 10
T - **** -
S - * ***** -
- * ***** -
- ******** -
5 ********* 5
- ********* -
- * ********* -
- *********** ** -
- **************** * ** -
+----+----+----+----+----+----+----+----+----+----+
15 25 35 45 55 65

ITEM NO. 10.

ATTACHMENT 6

ITEM NO. 10.

ITEM NO. 10.

ITEM NO. 10.

ATTACHMENT 7

ITEM NO. 10.

ITEM NO. 10.

ITEM NO. 10.

Town and Town
Town
approximately 160 feet east of Camellia Terrace
5/23/2024
approximately 160 feet east of Camellia Terrace
(TR1905)
ATTACHMENT 8 Page 174
ITEM NO. 10.

Town

ITEM NO. 10.

Reviewed by: Town Manager, Assistant Town Manager, Community Development Director, Chief of Police, 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: 11/19/2024
ITEM NO: 11
DATE: November 5, 2024
TO: Mayor and Town Council
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Introduce an Ordinance Amending the Town Code Chapter 14 Related to “Peddlers and Solicitors” and Replacing Article VII “Pushcarts” with “Sidewalk Vending.”
Ordinance Title: An Ordinance of The Town Council of The Town of Los Gatos Amending Sections 14.40.010, “Definitions,” and 14.40.015, “Nonapplicability,” of Article IV, “Peddlers And Solicitors,” of Chapter 14, “Licenses and Miscellaneous Business Regulations,” of The Town Code and Replacing Article VII, “Pushcarts,” of Chapter 14, “Licenses and Miscellaneous Business Regulations,” with a New Article VII, “Sidewalk Vending” in the Town Code.

RECOMMENDATION:

Introduce an Ordinance Amending the Town Code Chapter 14 Related to “Peddlers and Solicitors” and Replacing Article VII “Pushcarts” with “Sidewalk Vending.” BACKGROUND:

A proposed ordinance has been prepared following a Town Council study session on the topic of sidewalk vending and the requirements of state Senate Bill 946, which amended Government Code Sections 51036 and following.

Senate Bill 946, which became effective in 2019, prohibits local agencies from regulating sidewalk vendors except in accordance with Government Code Sections 51038 and 51039 (Attachment 1). Senate Bill 946 defines a “sidewalk vendor” as “a person who sells food or merchandise from a pushcart, stand, display, pedal-driven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one’s person upon a public sidewalk or other pedestrian path.”

ITEM NO. 11.

PAGE 2 OF 5
SUBJECT: Introduce an Ordinance Amending the Town Code Chapter 14 Related to “Peddlers and Solicitors” and Replacing Article VII “Pushcarts” with “Sidewalk Vending”
DATE: November 5, 2024
Local agencies do retain the ability to impose time, place, and manner regulations on sidewalk vendors. Specifically, Senate Bill 946 authorizes local agencies to do the following:
1) Adopt requirements regulating the time, place, and manner of sidewalk vending if the requirements are directly related to objective health, safety, and welfare standards. 2) Prohibit stationary sidewalk vendors from operating in areas that are zoned as exclusively residential.
3) Adopt reasonable time, place, and manner restrictions inside public parks if the restrictions are directly related to objective health, safety, or welfare concerns, when necessary to ensure the public’s use and enjoyment of the park, or as necessary to prevent an undue concentration of commercial activity that unduly interferes with the character of the park.
4) Limit the hours of operation for sidewalk vendors so long as those hours are not unduly restrictive. In nonresidential areas, any limitations on the hours of operation cannot be more restrictive than any limitations on hours of operation imposed on other businesses or uses on the same street. (At the Town Council’s study session, the Council asked whether this meant the length of the full street even when the full street runs for several blocks. While there is no legislative history addressing the intent of the statutory language, it is reasonable to interpret this to mean that, in nonresidential areas, the sidewalk vendor is limited to the hours of businesses on the same street within the same block.)
5) Impose requirements to maintain sanitary conditions. 6) Impose requirements necessary to comply with the Americans with Disabilities Act and other disability access standards.
7) Require the sidewalk vendor to obtain a sidewalk vending permit. 8) Require the sidewalk vendor to possess a valid California Department of Tax and Fee Administration Seller’s Permit.
9) Require additional licenses from other state or local agencies to the extent required by law.
10) Require sidewalk vendors to submit information regarding their operations, including a mailing address, a description of merchandise, a California seller’s permit number, and other information.
11) Prohibit sidewalk vendors from operating near certified farmers’ markets, swap meets, and other events subject to a temporary special permit.

Senate Bill 946 prohibits local jurisdictions from imposing the following regulations:
1) Requiring a sidewalk vendor to operate only within specific parts of the public right of way, unless the restriction is directly related to objective health, safety, and welfare concerns.

ITEM NO. 11.

PAGE 3 OF 5
SUBJECT: Introduce an Ordinance Amending the Town Code Chapter 14 Related to “Peddlers and Solicitors” and Replacing Article VII “Pushcarts” with “Sidewalk Vending”
DATE: November 5, 2024
2) Prohibiting sidewalk vendors from operating in a public park, unless the Town has an agreement with a third party for exclusive concessions in the park. 3) Restricting sidewalk vendors to specific neighborhoods, unless the restriction is directly related to objective health, safety, or welfare concerns.

At its August 15th study session, the Town Council expressed interest in:
1) Prohibiting sidewalk vending in areas that are zoned exclusively residential; 2) Requiring that all sidewalk vendors obtain a sidewalk vending permit; 3) Limiting the size of sidewalk vending areas to 15 square feet; 4) Prohibiting pop-up tents;
5) Prohibiting sidewalk vendors from blocking the entrances to businesses; 6) Prohibiting sidewalk vendors from limiting the line of sight at intersections; 7) Regulating sidewalk vendors in Town parks so that the character and use of parks are not affected;
8) Limiting the hours of operation for sidewalk vendors to be from 9 a.m. to sunset (unless SB 946 mandates that the vending be permitted to match the business hours of nearby businesses in commercial districts). For ease of administration, the proposed resolution limits the hours of operation to be from 9 a.m. to 5 p.m.; and 9) In Town parks, limiting the number of sidewalk vendors and ensuring that the vendors are in highly visible locations and operating during daylight hours.

The Town Code currently regulates peddlers and solicitors in Town Code Sections 14.40.010 and following (Attachment 2). The Town currently regulates pushcart vendors in Town Code Sections 14.70.010 and following (Attachment 3). These provisions were enacted in 1968 and staff recommends that they be updated in light of Senate Bill 946. The proposed ordinance would amend the peddlers and solicitors ordinance to exclude sidewalk vendors from its provisions. A redline showing the proposed changes to the peddlers and solicitors ordinance is attached as Attachment 4. A proposed ordinance to replace the Town’s existing pushcart ordinance with a new sidewalk vending ordinance is attached as Attachment 5.

DISCUSSION:

The proposed ordinance includes each of the elements identified at the Town Council’s August 15th study session. In addition, after the study session, Town staff met specifically to discuss sidewalk vending in Town parks. In order to make sure that parks remain available for the public to enjoy, staff is recommending that sidewalk vending in public parks be limited to the paved area near playgrounds and to two days per 30-day period per vendor. In order to prevent an undue concentration of commercial activity that unduly interferes with the character of Town parks, staff is recommending that there be no more than two vendors in the same park at any one time. Staff is proposing that the Police Department issue sidewalk vending permits for

ITEM NO. 11.

PAGE 4 OF 5
SUBJECT: Introduce an Ordinance Amending the Town Code Chapter 14 Related to “Peddlers and Solicitors” and Replacing Article VII “Pushcarts” with “Sidewalk Vending”
DATE: November 5, 2024
sidewalk locations and that the Parks and Public Works Department issue sidewalk vending permits to park locations. The proposed ordinance includes those provisions.

Procedurally, in order to align the Town Code with the requirements of Senate Bill 946, the proposed ordinance would:
1) Rescind the existing pushcart ordinance since pushcarts are included within the state definition of sidewalk vendors and would be covered by the proposed sidewalk vending ordinance.
2) Amend the existing peddler and solicitor ordinance to exclude sidewalk vendors from its provisions.
3) Regulate sidewalk vendors.

The Town will need to adopt a new sidewalk vending permit fee and develop an application form, prior to the effective date of the Ordinance.

CONCLUSION:

Staff has developed a proposed ordinance to require that sidewalk vendors obtain sidewalk vending permits and to include these time, place, and manner regulations. The ordinance also rescinds the Town’s existing pushcart ordinance and amends the Town’s existing peddlers and solicitors ordinance. If introduced, the ordinance would return to the Town Council for adoption on December 3rd and would take effect 30 days after adoption.

FISCAL IMPACT:

This ordinance update is not anticipated to have a financial impact because sidewalk vendors are already required to pay business license taxes.

There is currently no permit program for vending in parks, so this ordinance represents a new program that will impact Parks and Public Works operations. Park reservations and permitting are currently managed by one 0.75 FTE who issued 563, 861, and 755 permits in 2021, 2022, and 2023 respectively. A total of 652 Reservations and permits have been issued through November 13, 2024. Each reservation includes processing payments, and many include coordinating with vendors such as for business, licenses, catering, face painting, etc. This staff person also coordinates with the Office of Economic Vitality on special events that are held in parks and answers phones and monitors the PPW general email box on a bi-weekly basis. It is unclear how the new permit program for vending in parks will impact the performance of this

0.75 FTE, but there is no capacity in existing staff to manage this new program.

ITEM NO. 11.

PAGE 5 OF 5
SUBJECT: Introduce an Ordinance Amending the Town Code Chapter 14 Related to “Peddlers and Solicitors” and Replacing Article VII “Pushcarts” with “Sidewalk Vending”
DATE: November 5, 2024
CEQA:

Because this ordinance will not cause a change in the physical environment, introduction of this ordinance is not a project subject to the California Environmental Quality Act (Public Resources Code Section 21065).

COORDINATION:

This report was coordinated with the Town Manager’s Office, the Parks and Public Works Department, the Police Department, and the Community Development Department. A copy of the proposed sidewalk vending ordinance was provided to the Chamber of Commerce.

Attachments:

1. Senate Bill 946

2. Existing Peddlers and Solicitors Code Section

3. Existing Pushcarts Code Section

4. Redline Showing Proposed Edits to Peddlers and Solicitors Code Section

5. Proposed Ordinance Amending Chapter 14 of the Town Code Related to “Peddlers and Solicitors” and Replacing Article VII, “Pushcarts” with “Sidewalk Vending”

ITEM NO. 11.

SHARE THIS: Date Published: 09/17/2018 09:00 PM
SB-946 Sidewalk vendors. (2017-2018)
Senate Bill No. 946
CHAPTER 459
An act to add Chapter 6.2 (commencing with Section 51036) to Part 1 of Division 1 of Title 5 of the Government Code, relating to sidewalk vendors.
[ Approved by Governor September 17, 2018. Filed with Secretary of State September 17, 2018. ]

LEGISLATIVE COUNSEL'S DIGEST
SB 946, Lara. Sidewalk vendors.

Existing law authorizes a local authority, by ordinance or resolution, to adopt requirements for the public safety regulating any type of vending and the time, place, and manner of vending from a vehicle upon a street.

This bill would prohibit a local authority, as defined, from regulating sidewalk vendors, except in accordance with the provisions of the bill. The bill would provide that a local authority is not required to adopt a new program to regulate sidewalk vendors if the local authority has established an existing program that substantially complies with the provisions of the bill. The bill would apply these provisions to a chartered or general law city, county, or city and county.

The bill would require a local authority that elects to adopt a sidewalk vending program to, among other things, not require a sidewalk vendor to operate within specific parts of the public right-of-way, except when that restriction is directly related to objective health, safety, or welfare concerns, and not restrict sidewalk vendors to operate only in a designated neighborhood or area, except as specified. The bill would authorize a local authority to, by ordinance or resolution, adopt additional requirements regulating the time, place, and manner of sidewalk vending, as specified, if the requirements are directly related to objective health, safety, or welfare concerns.

The bill would also authorize a local authority to prohibit sidewalk vendors in areas located within the immediate vicinity of a permitted certified farmers’ market and a permitted swap meet, as specified, and to restrict or prohibit sidewalk vendors within the immediate vicinity of an area designated for a temporary special permit issued by the local authority, as specified. A violation would be punishable only by an administrative fine, as specified, pursuant to an ability-to-pay determination, and proceeds would be deposited in the treasury of the local authority.

The bill would require the dismissal of any criminal prosecutions under any local ordinance or resolution regulating or prohibiting sidewalk vendors that have not reached final judgment. The bill would also authorize a person who is currently serving, or who completed, a sentence, or who is subject to a fine, for a conviction of a misdemeanor or infraction for sidewalk vending, as specified, to petition for dismissal of the sentence, fine, or conviction.

Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites 11/5/24, 3:53 PM Bill Text - SB-946 Sidewalk vendors.
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB946 ATTACHMENT 1 1/6

ITEM NO. 11.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

Vote: majority Appropriation: no Fiscal Committee: no Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. (a) The Legislature finds and declares all of the following:
(1) Sidewalk vending provides important entrepreneurship and economic development opportunities to lowincome and immigrant communities. (2) Sidewalk vending increases access to desired goods, such as culturally significant food and merchandise. (3) Sidewalk vending contributes to a safe and dynamic public space. (4) The safety and welfare of the general public is promoted by encouraging local authorities to support and properly regulate sidewalk vending.
(5) The safety and welfare of the general public is promoted by prohibiting criminal penalties for violations of sidewalk vending ordinances and regulations.
(6) This act applies to any city, county, or city and county, including a charter city. The criminalization of small business entrepreneurs, and the challenges that those entrepreneurs face as a result of a criminal record, are matters of statewide concern. Further, unnecessary barriers have been erected blocking aspiring entrepreneurs from accessing the formal economy, harming California’s economy in the process, and disrupting the regulation of business, which is a matter of statewide concern. Moreover, California has an interest in the regulation of traffic, a matter of statewide concern, whether in ensuring the appropriate flow of traffic or in ensuring the safety of pedestrians on the road or the sidewalk.
(b) It is the intent of the Legislature to promote entrepreneurship and support immigrant and low-income communities.

SEC. 2. Chapter 6.2 (commencing with Section 51036) is added to Part 1 of Division 1 of Title 5 of the Government Code, to read:

CHAPTER 6.2. Sidewalk Vendors
51036. For purposes of this chapter, the following definitions apply:
(a) “Sidewalk vendor” means a person who sells food or merchandise from a pushcart, stand, display, pedaldriven cart, wagon, showcase, rack, or other nonmotorized conveyance, or from one’s person, upon a public sidewalk or other pedestrian path.
(b) “Roaming sidewalk vendor” means a sidewalk vendor who moves from place to place and stops only to complete a transaction.
(c) “Stationary sidewalk vendor” means a sidewalk vendor who vends from a fixed location. (d) “Local authority” means a chartered or general law city, county, or city and county. 51037. (a) A local authority shall not regulate sidewalk vendors except in accordance with Sections 51038 and 51039.
(b) Nothing in this chapter shall be construed to affect the applicability of Part 7 (commencing with Section 113700) of Division 104 of the Health and Safety Code to a sidewalk vendor who sells food. (c) Nothing in this chapter shall be construed to require a local authority to adopt a new program to regulate sidewalk vendors if the local authority has established an existing program that substantially complies with the requirements in this chapter.
51038. (a) A local authority may adopt a program to regulate sidewalk vendors in compliance with this section. 11/5/24, 3:53 PM Bill Text - SB-946 Sidewalk vendors.
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