ITEM NO. 11.
PAGE 2 OF 4
SUBJECT: Adopt a Resolution to Adopt a List of Projects for FY25/26 Funded by SB-1 DATE: May 1, 2025
BACKGROUND:
SB 1, the Road Repair and Accountability Act of 2017, was passed by the State Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide. SB 1 is intended to enable cities and counties to better address significant maintenance, rehabilitation, and safety needs on their local street systems. Maintenance and rehabilitation projects are used to extend the serviceable life of streets. The Town will receive an estimated $1,831,518 in Road Maintenance and Rehabilitation Account (RMRA) funding through SB 1 in FY 2025/26.
Built into the Road Repair and Accountability Act (RMRA) are accountability and transparency measures, including a requirement that a list of all streets proposed to receive RMRA funding be adopted by the applicable governing body at a regular meeting. To comply, the Town Council must adopt a resolution with a list of streets that may receive RMRA funding in the upcoming fiscal year, including a description and the location of each proposed street segment, a proposed schedule for the project’s completion, and the estimated useful life of the improvement.
DISCUSSION:
In considering which roads may receive RMRA funding, staff recommends Town road segments that carry heavier traffic loads and volumes, such as arterials that may involve more design scope and construction work to repair and maintain compared to other local roadways. Staff have identified the project segments shown in Table 1 for use of SB 1 funding in FY 2025/26 and upcoming years.
ITEM NO. 11.
PAGE 3 OF 4
SUBJECT: Adopt a Resolution to Adopt a List of Projects for FY25/26 Funded by SB-1 DATE: May 1, 2025
Table 1. Roadways Where FY 2025/26 SB1 Funds May Be Used Street Begin Location End Location
Almond Blossom Ct Almond Blossom Ln End
Almond Blossom Ln Harwood Rd City Limits
Bacigalupi Dr Harwood Rd End
Belblossom Dr Belgatos Rd Westhill Dr
Belblossom Way Belwood Gateway Belgatos Rd
Belhaven Dr Harwood Rd Bacigalupi Dr
Belridge Dr Harwood Rd Bacigalupi Dr
Belvue Dr Belgatos Rd Bacigalupi Dr
Blossom Hill Rd Highway 880 (17) 400' East of Hwy 17
Cambrian View Wy Kensington Wy End
Campos Verde Old Orchard Dr End
Harwood Ct Harwood Rd End
Old Orchard Ct Old Orchard Dr End
Old Orchard Dr Westhill Dr Westhill Dr
Surmont Ct Surmount Dr City Limits
Surmont Dr Westhill Dr End
Westhill Dr Blossom Hill Rd Belgatos Rd
Belvue Dr Bacigalupi Dr Harwood Rd
The required work on the identified streets may exceed the available SB 1 funding. Funding from other sources would be required to complete the projects. These additional sources are defined in the Town’s adopted and proposed Capital Improvement Programs.
Modifications to the SB 1 funding project list are permitted, and staff may recommend modifications when greater needs for funding emerge; for example, due to winter weather impacts. Construction for the Annual 2025 Street Repair and Resurfacing project is anticipated to start in the summer of 2025.
One important element associated with SB 1 is a continued Maintenance of Effort (MOE) requirement. The MOE is the average discretionary street expenditures of the three base fiscal years as set by SB 1 (FY 2009-10 - FY 2011-12). The MOE requirement is relevant to the Town of Los Gatos because the local funding for routine street maintenance must not be less than the MOE. The Town of Los Gatos MOE is $3,738,858. Staff have confirmed that this MOE requirement is reviewed and met in our annual streets report every year by the Finance team.
As an example, the actual street expenditure summary for 2024 was $7,600,390, which exceeds the minimum MOE requirement. As the State continues to refine the calculation and reporting requirements for the MOE, it is important for the Town to sustain historical maintenance funding levels to avoid the risk of losing the annual RMRA appropriation.
ITEM NO. 11.
PAGE 4 OF 4
SUBJECT: Adopt a Resolution to Adopt a List of Projects for FY25/26 Funded by SB-1 DATE: May 1, 2025
CONCLUSION:
Adoption of the recommended resolution would meet the SB 1 RMRA funding requirement to have an adopted project list and allow the continuation of the Town’s roadway maintenance through the Capital Improvement Program.
ENVIRONMENTAL ASSESSMENT:
Adoption of this resolution is not a project as defined by CEQA. The paving work is categorically exempt per CEQA Section 15301, because it involves maintenance of existing roads. The Categorical Exemption will be discussed with the award of the contract.
Attachments:
1. Resolution Adopting a List of Projects for Fiscal Year 2025/26 Funded by the State Senate Bill 1: The Road Repair and Accountability Act of 2017.
ITEM NO. 11.
1 of 4
Resolution 2025- May 20, 2025
ATTACHMENT 1
RESOLUTION 2025-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025/26 FUNDED BY THE STATE SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of our Town are aware of the projects proposed for funding in the community and which projects have been completed each fiscal year; and WHEREAS, the Town must adopt by resolution a list of all projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the Town will receive an estimated $1,831,518 in RMRA funding in Fiscal Year 2025/26 from SB 1; and
WHEREAS, this is the ninth year in which the Town is receiving SB 1 funding and will enable the Town to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the Town used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the highest priority and cost-effective projects that also meet the communities’ priorities for transportation investment; and WHEREAS, the funding from SB1 will help the Town maintain and rehabilitate streets throughout the Town this year and similar projects into the future; and
ITEM NO. 11.
2 of 4
Resolution 2025- May 20, 2025
ATTACHMENT 1
WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the Town’s streets and roads are in a “good” condition, and this revenue will help increase the overall quality of the road system, and over the next decade, will bring Town streets and roads into a good condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure, with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials, and practices, will have significant positive co-benefits statewide.
NOW, THEREFORE, BE IT RESOLVED: The foregoing recitals are true and correct, and the following list of projects will be funded in part or solely with Fiscal Year 2025/26 Road Maintenance and Rehabilitation Account revenues:
ITEM NO. 11.
3 of 4
Resolution 2025- May 20, 2025
ATTACHMENT 1
Base Bid
Street Begin Location End Location Treatment Estimated
Useful Life of
Treatment
Construction
Schedule
Almond Blossom Ct Almond Blossom Ln End of Road 2O 20 years Summer 2025 Almond Blossom Ln Harwood Rd City Limits 2MO 20 years Summer 2025 Bacigalupi Dr Harwood Rd End 2O 20 years Summer 2025
Belblossom Dr Belgatos Rd Westhill Dr 2O 20 years Summer 2025 Belblossom Way Belwood Gateway Belgatos Rd 2O 20 years Summer 2025 Belhaven Dr Harwood Rd Bacigalupi Dr 2O 20 years Summer 2025 Belridge Dr Harwood Rd Bacigalupi Dr 2O 20 years Summer 2025 Belvue Dr Belgatos Rd Bacigalupi Dr 2O 20 years Summer 2025 Blossom Hill Rd Highway 880 (17) 400' East Of
Hwy 17
2MO 20 years Summer 2025
Cambrian View Wy Kensington Wy End 2O 20 years Summer 2025 Campos Verde Old Orchard Dr End 2O 20 years Summer 2025 Harwood Ct Harwood Rd End 2O 20 years Summer 2025
Old Orchard Ct Old Orchard Dr End 2O 20 years Summer 2025 Old Orchard Dr Westhill Dr Westhill Dr 2O 20 years Summer 2025 Surmont Ct Surmount Dr City Limits 2O 20 years Summer 2025 Surmont Dr Westhill Dr End 2O 20 years Summer 2025
Westhill Dr Blossom Hill Rd Belgatos Rd 2O 20 years Summer 2025 Belvue Dr Bacigalupi Dr Harwood Rd 2O 20 years Summer 2025 KEY:
2MO 2" Mill and
Overlay
2O 2" Overlay
ITEM NO. 11.
4 of 4
Resolution 2025- May 20, 2025
ATTACHMENT 1
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 20th day of May of 2025 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ITEM NO. 11.
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: 05/20/2025
ITEM NO:12
DATE: May 15, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the Agreement for Services with OpenGov, Inc. for Additional Services to Support the Existing Enterprise Asset Management and Procurement System Services in an Amount of $11,448.72 for a Total Agreement Amount Not to Exceed $77,804.31
RECOMMENDATION:
Staff recommends that the Town Council authorize the Town Manager to execute a First Amendment to the Agreement for Services with OpenGov, Inc. (Attachment 1) for additional services to support the existing enterprise asset management and procurement system services in an amount of $11,448.72 for a total agreement amount not to exceed $77,804.31.
STRATEGIC PRIORITIES:
This contract supports the Core Goal of Fiscal Stability. Parks and Public Works is working with OpenGov software to create more efficient and streamlined processes for bidding and contract management.
FISCAL IMPACT:
The Adopted Fiscal Year 2024/25 Parks and Public Works (PPW) Administration Program (5101- 63332) and Information Technology Department (2501-63332) Operating Budgets include sufficient funds to cover the contract amendment in the amount of $11,448.72 for FY 2024/25.
The cost split is proposed to be $6,707.87 from PPW and $4,740.85 from IT. Subsequent year charges will be included in the proposed Operating Budgets (pending budget appropriation and extension of the agreement).
ITEM NO. 12.
PAGE 2 OF 3
SUBJECT: First Amendment to Agreement OpenGov, Inc. for Additional Services to Support the Existing Enterprise Asset Management System and Procurement System Services
DATE: May 20, 2025
BACKGROUND:
On November 21, 2023, the Town Council approved the purchase and implementation of OpenGov’s Procurement Suite. PPW proposed this implementation to achieve efficiency and time savings regarding procurement and contract management. The system provides centralized document management with automatic reminders, and the ability to track spending, insurance, and change requests. PPW has been using OpenGov software for more than 20 years for work order and asset management, and the addition of the procurement suite ensures continuity among vendors. This agreement expired on December 29, 2024.
On November 19, 2024, the Town Council approved a new agreement with OpenGov Inc. that brought the Enterprise Asset Management and Procurement modules under one contract effective December 30, 2024, through December 29, 2025, for a total agreement amount of $66,355.59 with four one-year options thereafter (pending budget appropriation and extension of the agreement).
DISCUSSION:
The proposed First Amendment adds Request Management and e-signature services to the agreement that expires on December 29, 2025, placing all of the PPW related OpenGov Services into one agreement. Pending budget appropriations, staff will seek an extension of the agreement to continue services through 2026 and future calendar years.
OpenGov introduced a new Request Management module and added e-signature functionality for more effective contract management. OpenGov’s Request Management solution will optimize the wide variety of procurement and contract requests and make the execution of change orders and amendments more streamlined. E-signature functionality will provide staff with the ability to manage contracts from start to finish from within the software platform by integrating Adobe DocuSign.
The addition of OpenGov’s Request Management module and e-signature integration as add-on to the current Procurement and Contract Management Suite will provide staff with the ability to further streamline contract workflows and more effectively manage contracts.
CONCLUSION:
Execution of this amendment will provide additional efficiency to the PPW procurement and contract management operations.
ITEM NO. 12.
PAGE 3 OF 3
SUBJECT: First Amendment to Agreement OpenGov, Inc. for Additional Services to Support the Existing Enterprise Asset Management System and Procurement System Services
DATE: May 20, 2025
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachment:
1. First Amendment to Agreement for Services - OpenGov with Exhibit A (Original Agreement) and Exhibit B (Proposal)
ITEM NO. 12.
First Amendment to Agreement for Services
OpenGov, Inc.
FIRST AMENDMENT TO AGREEMENT
PREAMBLE
This First Amendment to Agreement for Services is dated for identification on this 15th day of April 2025, and amends that certain Agreement for Services dated November 19, 2024, made by and between the Town of Los Gatos, ("Town,") and the OpenGov, Inc. (“Service Provider”) identified as an C Corporation and whose address is 660 3rd Street, Suite 100 San Francisco CA 94107.
I. RECITALS
A. Town and Consultant entered into Agreement for Services Agreement on November 19, 2024, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Exhibit A to this Agreement.
B. Town desires to amend the Agreement to add to the scope of services and to increase the compensation of the Agreement.
II. AMENDMENT
1. 2.1 Scope of Services is amended to add the following:
Service Provider shall provide services as described in that certain Proposal dated May 2, 2025, which is hereby incorporated by reference and attached as Exhibit B.
2. 2.6 Compensation is to be replaced in its entirety with the following:
Compensation for services for the dates December 30, 2024 to December 29, 2025 shall be the original agreement amount of $66,355.59, increased by $11,448.72 for an agreement amount not to exceed $77,804.31. All invoice amounts, including exercised option years (pending budget appropriation and extension of the agreement) shall be invoiced in the amounts further described in the applicable Order Form (“Exhibit A and B”).
3. All other terms and conditions of the Agreement remain in full force and effect.
ATTACHMENT 1
ITEM NO. 12.
First Amendment to Agreement for Services
OpenGov, Inc.
IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.
Town of Los Gatos by:
________________________________________
Chris Constantin, Town Manager
OpenGov, Inc. by:
________________________________________
Joe Lane, Sr. Director, Finance & Strategy
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. 12.
Agreement for Services
OpenGov, Inc.
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 to extend the agreement.
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”).
Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60
EXHIBIT A
ITEM NO. 12.
Agreement for Services
OpenGov, Inc.
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 Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60
ITEM NO. 12.
Agreement for Services
OpenGov, Inc.
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 Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60
ITEM NO. 12.
Agreement for Services
OpenGov, Inc.
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 Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60
ITEM NO. 12.
Agreement for Services
OpenGov, Inc.
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.
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
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 Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60
ITEM NO. 12.
Agreement for Services
OpenGov, Inc.
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.
Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60
ITEM NO. 12.
Agreement for Services
OpenGov, Inc.
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
Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60 11/27/2024
12/2/2024
12/4/2024
12/6/2024
12/6/2024
ITEM NO. 12.
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)
Exhibit A
Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60
ITEM NO. 12.
OpenGov Inc.
660 3rd Street, Suite 100
San Francisco, CA 94107
United States
Order Form Number: Q-07800 Prepared By: Jonathan Stone
Created On: 05/02/2025 Email: [email protected]
Order Form Expiration: 05/23/2025 Contract Term: 55 Months Subscription Start Date: 05/30/2025
Subscription End Date: 12/29/2029
Customer Information:
Customer: Town of Los Gatos, CA Contact Name: Kinjal Buch Bill To/Ship To: 110 E. Main St Email: [email protected] Los Gatos, California Phone: +1 4083995756
95030
United States
Order Details:
Billing Frequency: Upfront
Payment Terms: Net 30 Days
SOFTWARE SERVICES:
Product Name Start Date End Date Annual Fee
Contract eSignatures 05/30/2025 12/29/2025 $432.18
Request Management 05/30/2025 12/29/2025 $4,320.54
Contract eSignatures 12/30/2025 12/29/2026 $777.92
Request Management 12/30/2025 12/29/2026 $7,776.97
Contract eSignatures 12/30/2026 12/29/2027 $816.82
Request Management 12/30/2026 12/29/2027 $8,165.81
Contract eSignatures 12/30/2027 12/29/2028 $857.66
EXHIBIT B
ITEM NO. 12.
Request Management 12/30/2027 12/29/2028 $8,574.11
Contract eSignatures 12/30/2028 12/29/2029 $900.54
Request Management 12/30/2028 12/29/2029 $9,002.81
PROFESSIONAL SERVICES:
Product Name Start Date Description Fee
Professional Services
Deployment - Time and
Materials Billed Monthly
as Incurred
05/30/2025 Professional Services Deployment - Estimated Time and Materials Billed Monthly as Incurred $6,696.00
Professional Services Total: $6,696.00
Customer Billing/Service Periods:
Period: Total:
05/30/2025 $11,448.72
12/30/2025 $8,554.89
12/30/2026 $8,982.63
12/30/2027 $9,431.77
12/30/2028 $9,903.35
Order Form Legal Terms:
This Order Form incorporates the Agreement for Services between the parties dated November 19, 2024.
The "Agreement" consists of the Order Form(s), Agreement for Services, 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 Order Form, 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.
Hours will be billed upon completion on a time and material basis at a rate of $215.00 per hour. Actual charges may exceed the provided estimate under Time and Materials billing, The final amount billed will reflect the actual hours utilized.
ITEM NO. 12.
Town of Los Gatos, CA: OpenGov, Inc.
Signature:
____________________________
Signature:
____________________________
Name:
____________________________
Name:
____________________________
Title:
____________________________
Title:
____________________________
Date:
____________________________
Date:
____________________________
ITEM NO. 12.
PREPARED BY: Dan Keller
Fleet & Facilities Operations Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Director of Parks and Public Works
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/20/2025
ITEM NO: 13
DATE: May 15, 2024
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Change Order in the Amount of $4,241.78 to an Existing Purchase Order with Lehr Uplifters OpCo, LLC for Additional Build-Out of a Police Department Patrol Vehicle for a New Total Amount Not to Exceed $36,052
RECOMMENDATION:
Staff recommends that the Town Council approve the following actions related to the build-out of the Police Department patrol vehicle:
a. Authorize the Town Manager to execute a change order in the amount of $4,241.78 to the existing purchase order with Lehr Uplifters OpCo, LLC for Additional Build-Out of a Police Department Patrol Vehicle for a new total amount not to exceed $36,052; and b. Authorize an Expenditure Budget Adjustment in the Amount of $4,241.78 from the available Equipment Replacement Fund.
STRATEGIC PRIORITIES:
This Purchase and Service Agreement pertains to the Town Council’s Priority of Public Safety.
FISCAL IMPACT:
There are sufficient funds available in the Equipment Replacement Fund for the requested expenditure budget adjustment.
BACKGROUND:
The Town Vehicle and Equipment Acquisition and Replacement Policy (Policy 4-05) determines
ITEM NO. 13.
PAGE 2 OF 3
SUBJECT: Authorize a Purchase and Service Agreement with Lehr DATE: May 15, 2025
which assets should be replaced by evaluating vehicle age, mileage service history, and performance. Staff review the replacement list each year and makes a judgment with regard to which should be prioritized for replacement. Replacement purchases are reviewed annually through the Operating Budget development process.
The Town amortizes a vehicle’s replacement over its forecasted life and sets funds aside on an annual basis to ensure the Equipment Replacement Fund has sufficient resources for the timely replacement of vehicles. In addition, this funding structure allows for a smoothing of operating expenditures and a more accurate reflection of the actual cost of operations. As part of the FY 2023-24 Operating Budget, the Equipment Replacement Fund was approved, providing funds for the replacement of high mileage or older vehicles that have reached their replacement criteria or did not meet federal regulations for emissions.
In accordance with the Town Code Section 2.50.130 (6) (c), the purchase of the vehicle was based on a formal bid process completed by the State of California Department of General Services. Folsom Lake Ford has a Statewide Contract for the purchase of enforcement and police pursuit vehicles. That statewide contract was relied on for this purchase. Additionally, Lehr is an approved “single source” vendor for the fit-up of emergency vehicles for the Town based on their close proximity and experience. Their pricing matched with a formal bid process completed by the County of Placer, which demonstrates that the Town is receiving the lowest price available for fit-up of emergency vehicles. The Town’s purchasing policy authorizes a single source purchase without competitive bidding under these circumstances.
A 2025 Ford Interceptor pursuit vehicle was originally identified for replacement in the Fiscal Year (FY) 2024/25 Operating Budget as part of the Town’s ongoing fleet management and replacement program. However, due to concerns about potential delays and the limited vehicle ordering window, staff recommended expediting the purchase prior to the start of FY 2024/25 to ensure the vehicle could be received in FY 2024/25.
On March 19, 2024, the Town Council authorized the purchase of the vehicle from Folsom Lake Ford in an amount not to exceed $56,606. The Council also authorized the Town Manager to execute a purchase order with Lehr to complete the build-out of the police vehicle in an amount not to exceed $31,810. These actions were brought forward to the Council because they required an expenditure budget adjustment totaling $88,416 from the available Equipment Replacement Fund.
DISCUSSION:
The request to increase the expenditure budget for this vehicle is a direct result of the increased cost of the vehicle build-out components in 2025, due to unforeseen changes to the console assembly. That change in the design of the vehicle requires adjustments to the installation of the equipment needed for the Police Department to ensure component access and visibility for Patrol Officers. As a result, the new total cost for purchase and build-out of this
ITEM NO. 13.
PAGE 3 OF 3
SUBJECT: Authorize a Purchase and Service Agreement with Lehr DATE: May 15, 2025
vehicle will be $92,658. This item is being brought before the Town Council because the original vehicle purchase amount was previously approved by the Council, and any modification to the approved expenditure requires Council authorization.
CONCLUSION:
The requested Council action would allow Parks and Public Works to proceed with the proper build-out of the patrol vehicle for Police Department use. The Equipment Replacement Fund is a dedicated resource for this expense.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ATTACHMENTS:
1. Change Order Request with Approved Purchas Order
2. Town Vehicle and Equipment Acquisition and Replacement Policy
3. California State Contract Letter
4. County of Placer Suppler Contract
ITEM NO. 13.
CHANGE ORDER REQUEST
PO#:
Vendor Name:
Date of Request:
Staff Contact and Ext.:
Department:
Insurance Expires:
Contract Expires:
Dollar amount of the change order:
Circle which change order is requested:
The following must be attached:
A. Change in the scope of service:
Yes - attach copy of the new scope of services
No
B. Items included in original purchase order:
No - IF NO, THIS IS NOT A CHANGE ORDER. Please create new requisition in eFinancePlus Yes - using the Purchase Order Information as the source, fill in the following:
** Change order is to adjust the quantities, rate, amount, charged Program # and Account# Description/Item Number
Unit
(ea., per, gross) Rate Adjusted Qty
Adjusted
Extension
increase, see attached additional build
for asset #6542. ea 1 $ 4,241.78
$ 4,241.78
Program # Account # Project # Account # Amount
5402 81101 $ 4,241.78
$4,241.78
Submit completed change request directly to Accounts Payable Department Authorization______________________ Finance_____________________ Dan Keller x5310
DEPARTMENT SIGN-OFF
PLEASE COMPLETE ALL SHADED AREAS - ( FOR CHANGES TO BE DONE TO ALREADY ISSUED PO) PPW
$4,241.78
20240276
Lehr
1 2 3 4 5 6 7 8 9
9-Apr
https://losgatoscagov.sharepoint.com/PPW/Shared Documents/PPW/Finance/Change Orders/24-25/Lehr- no.1- build increase- asset 6542 ATTACHMENT 1
ITEM NO. 13.
Item No. Description Quantity Unit Price Total Price
C-VS-1012-INUT-2 Havis, Vehicle-Specific 22″ Angled Console For 2020-25 Ford PI SUV W/Rear HVAC Controls
1 487.50 487.50
2020 - 2025 PI SUV Without rear HVAC controls require CM014248-1 Bracket Kit C-EB40-CCS-1P Havis 4" FP Fits Cencom CCSRN, CCSRNTA, MPC03 1 C-EB25-XTL-1P Havis 2.5" FP Fits XTL2500, XTL5000-05, APX7500 & APX8500 1 C-EB35-RHP-1P Havis, 3.5" Face Plate, Fits AceK9 Hot-N-Pop Control Head Used In Havis Model K9-A-201 Series Kits
1 CUP2-1001 Havis 4" Internal Self-Adjusting Double Cup Holder 1 50.25 50.25 C-AP-0645-L Havis 6" Accessory Pocket w/Hinged Lid and Lock, 4.5" Deep 1 135.00 135.00 C-FP-2 Havis, 2" Filler Plate 1
C-ARM-103 Havis, Armrest For Top Mount, Console, Large Pad 1 136.50 136.50 C-MD-119 Havis, 11″ Slide Out Locking Swing Arm w/ Low Profile Motion Device Adapter 1 275.25 275.25 WGI-F28-RC Havis, Window Guards, Rear Cargo Area 1 477.75 477.75 F Shipping Charges 1 295.00 295.00
L Labor Charges 16 140.00 2,240.00
REMOVE RADIO AND SIREN CONTROL FROM DMM
REMOVE CDMM RETURN DASH TO OEM
REMOVE COMPUTER MOUNT
REMOVE EXTERNAL BEV HOLDER
INSTALL NEW HAVIS CONSOLE AND ACCESSORIES
INSTALL ARM REST
INSTALL COMPUTER MOUNT
INSTALL REAR WINDOW BARRIERS
4,241.78
144.53
4,097.25
Total:
Total Tax
Sub-Total
2,535.00
1562.25
Amount Exempt from Sales Tax
Amount Subject to Sales Tax
Name: __________________________________________________ Auth. Signature: ________________________________________ Agency Approval
PLEASE READ: No returns without approval and an RMA# will be accepted. All shortages, damage, or return claims must be made within 10 days of invoice date. NO EXCEPTIONS. A copy of the invoice and RMA paperwork must be shipped with returns. All return orders or cancellations are subject to a 25% restocking fee plus freight. Any change orders made 60 days prior to the installation date may be subject to a production delay and pricing changes. PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.
CC Proc. Fee 0.00
Page:
Document Date:
Quote Number:
Sales Quote
To:
Ship
SalesPerson
Ship Via Customer ID
To:
Sell
52907
Mike McGee
51319
Phone: 800-982-8468
LOS GATOS, CA 95030-6044
41 MILES AVE
Nick Turner
Town of Los Gatos
Phone:
Los Gatos, CA 95031
PO Box 655
Nick Turner
Town of Los Gatos
Phone: 831-634-1600 Fax: 831-634-1602
1590 Lana Way #7 Hollister, CA 95023-2552
4/3/2025
1 Tax Ident. Type Legal Entity
Vehicle Information:
2025 FORD UTILITY
Terms: Net 30
Payment Method:
PRICES ARE VALID FOR 30 DAYS FROM DATE OF QUOTE UNLESS OTHERWISE SPECIFIED
ITEM NO. 13.
PURCHASE ORDER NO.
TOWN OF LOS GATOS
110 E Main Street
Los Gatos, CA 95030
Town of Los Gatos is exempt from Federal Excise Tax and Finance Charges.
Not valid without Purchase Order No. and signature of Purchasing Agent. All purchases are subject to the conditions printed below. Mail two copies of your invoice to ACCOUNTS PAYABLE. P.O. BOX 655, LOS GATOS, CA 95031. All purchases prepaid freight.
V
E
N
D
O
R
S
H
I
P
T
O
ORDER DATE: BUYER: REQ. NO.: REQ. DATE:
TERMS: F.O.B.: DESC.:
ITEM# QUANTITY UOM DESCRIPTION UNIT PRICE EXTENSION
ITEM# ACCOUNT AMOUNT PROJECT CODE PAGE TOTAL $
TOTAL $
1. The Town of Los Gatos will not be responsible
for articles or services furnished to officials
or employees without a Purchase Order signed by
the authorized purchasing agent.
2. The right is reserved to purchase in the open
market and to charge the difference to the Vendor
in the event the deliveries are not made at the
time specified in the bid or contract.
3. Whenever a delivery is rejected the Vendor shall
be notified and given reason for the rejection.
All rejected deliveries shall be held at Vendor's risk
and he shall bear the expense of removal.
APPROVED BY DIRECTOR OF PURCHASING
20240276
PAGE NO. 1
4043 FAX: 916-646-6656
STOMMEL, INC
DBA: PURSUIT NORTH
4707 NORTHGATE BLVD
SACRAMENTO CA 95834
PARKS & PUBLIC WORKS
TOWN OF LOS GATOS
41 MILES AVENUE
LOS GATOS, CA 95030
ATTN: JIM HARBIN
05/22/24 JIM HARBIN 00007348
NET 30 DAYS 2025 FORD INTERCEPTOR BUI
01 1.00 LS 2025 FORD INTERCEPTOR BUILD 31809.2300 31,809.23 REPLACING ASSET # 2518
PER QUOTE # 44768.
31,809.23
31,809.23
01 5402 81101 31,809.23
ITEM NO. 13.
ATTACHMENT 2
COUNCIL POLICY MANUAL
TITLE: Town Vehicle and Equipment Acquisition and
Replacement Policy
POLICY NUMBER: 4-05
EFFECTIVE DATE: 4/6/1994 PAGES: 3
ENABLING ACTIONS: REVISED DATES: 5/26/1998
APPROVED: Mayor Linda Lubeck
PURPOSE
To set forth specific procedures for the acquisition and disposal of vehicle and motorized equipment used by the Town of Los Gatos.
SCOPE
This policy will apply to the acquisition and disposal of vehicles and equipment used by all Town Departments.
POLICY
When purchasing vehicles or motorized equipment or disposing of surplus vehicles and equipment, the following will apply:
A. Replacement of vehicles and motorized equipment is based on an equipment replacement schedule that allows for replacement on a programmed cycle. The recommended basis is as follows:
Vehicle/Equipment Type Replacement Cycle
Police Patrol 3 years and/or 85,000 miles
Police Undercover (used, 1 to 2 years old) 4 years and/or 75,000 miles Police Sedans (used, 1 to 2 years old) 4 years and/or 75,000 miles Motor Cycles 4 years and/or 42,000 miles
Parking Vehicles 6 years and/or 75,000 miles
All-Terrain Vehicle 8 years and/or 50,000 miles
Police Vans 6 years and/or 85,000 miles
Sedans (new) 8 years and/or 85,000 miles
Small Town Service Community Stewardship Future Focus
ITEM NO. 13.
TITLE: Town Vehicle and Equipment Acquisition and
Replacement Policy
PAGE:
2 of 3
POLICY NUMBER:
4-05
Vehicle/Equipment Type Replacement Cycle
Sedans (used 1 to 2 years old) 6 years and/or 85,000 miles Pickups (gas) 8 years and/or 72,000 miles
Pickups (diesel) 12 years and/or 100,000 miles
Medium Trucks (gas) 8 years and/or 80,000 miles
Medium Trucks (diesel) 12 years and/or 100,000 miles
Heavy Trucks (gas) 8 years and/or 80,000 miles
Heavy Trucks (diesel) 15 years and/or 100,000 miles
Lawn Mowers 6 years
Roadable Mowers 8 years
Vans 8 years and/or 100,000 miles
Sweepers 6 years and/or 65,000 miles
Backhoes 10 years and/or 7,000 hours
Loaders 12 years and/or 7,200 hours
Graders 20 years and/or 9,000 hours
Aerial Units 12 years and/or 80,000 miles
Chippers 10 years and/or 5,000 hours
Compressors 12 years and/or 5,000 hours
Forklifts 17 years and/or 9,000 hours
Rollers 15 years
Trailers 10 years
Sprayers 8 years
Sewer Cleaners 6 years
Rodders 10 years
The equipment/replacement list will be used as a guideline in the replacement of vehicles and equipment. Other factors that will be used in the evaluation process include:
1. Overall conditions of vehicles and equipment
2. Repair records.
3. Vehicle efficiency and safety.
4. Service life related to extended use in other departments.
B. COOPERATIVE PURCHASING PROGRAM:
When purchasing vehicles and equipment, the town of Los Gatos will invite vendors (local and non-local) to submit bids. Where applicable, the Town will use the State of California Cooperative Purchasing Program.
ITEM NO. 13.
TITLE: Town Vehicle and Equipment Acquisition and
Replacement Policy
PAGE:
3 of 3
POLICY NUMBER:
4-05
C. SPECIFICATIONS:
The Department of Parks and Public Works will review all specifications for vehicles and motorized equipment to be purchased by the Town of Los Gatos. Specifications will be prepared based on user needs, operating costs, safety factors, life expectancy, new technology, availability, and cost. When applicable, performance standards will be included in the specification writing process.
D. VEHICLE AND EQUIPMENT DISPOSAL:
Disposal may take place via trade-in when vehicles or equipment are purchased. If the trade-in offer is deemed insufficient, the Town will advertise and surplus items at a minimum pre-determined price. When possible, staff will try to offer specialized vehicles, such as Police patrol cars, to agencies that need such equipment but may not be able to purchase new equipment. Prior to the disposal of vehicle or equipment, the Parks and Public Works Department will determine if reassignment to another department is warranted.
E. RESPONSIBILITY:
All applicable departments within the Town of Los Gatos who are assigned vehicles or motorized equipment may be involved in the procurement/disposal process.
1. Finance personnel and the Town Manager shall review the equipment replacement list annually to ensure that replacement costs for vehicles and equipment are current and in-line with long-term replacement needs.
2. Each Department is responsible for requesting vehicle or equipment replacement during the annual budget process.
3. The Parks and Public Works Department will prepare vehicle specifications for all Town Departments except the Police Department.
4. The Parks and Public Works Department will review all Town specifications for vehicles and motorized equipment.
5. Disposal or reassignment of surplus vehicles and equipment will be coordinated by the Parks and Public Works Department.
APPROVED AS TO FORM:
________
/s/ Orry Korb, Town Attorney
ITEM NO. 13.
Department of General Services
Procurement Division
707 Third Street, 2nd Floor
West Sacramento, CA 95605-2811
State of California
STATEWIDE CONTRACT
USER INSTRUCTIONS
All changes to most recent Supplem ent are in bold red italic. Additi ons ar e enclosed in asterisks, *, and deleti ons are enclosed in br ackets, [].
MANDATORY
*Supplement 2*
ISSUE AND EFFECTIVE DATE: *1/30/2024*
CONTRACT NUMBER: 1-22-23-14C
DESCRIPTION: Enforcement Vehicles, Police Pursuit
(Ford Explorer V6 AWD)
(Ford Explorer V6 AWD - HEV)
CONTRACTOR: Folsom Lake Ford
CONTRACT TERM: 5/11/2022 through 5/10/2025
STATE CONTRACT ADMINISTRATOR: Rudolph Jimenez
(279) 946-8312
[email protected]
The contract user instructions, products, and pricing are included herein. All purchase documents issued under this contract incorporate the contract terms and applicable California General Provisions:
Non-IT General Provisions, rev 06/08/2010
(https://www.dgs.ca.gov/-/media/DD14F21678F64EBFADBC227F2C517C79.ashx) Cal eProcure link: www.caleprocure.ca.gov
ORDER PLACEMENT INFORMATION
Mailing Address:
Folsom Lake Ford
12755 Folsom Blvd.
Folsom, CA 95630
Fax/Email:
Fax: (916) 353-2078
Email:
[email protected]
Contact Information:
Folsom Lake Ford
Mark Paoli
Phone: (916) 351-4202
Email:
[email protected]
*CONTACT THE CONTRACTOR BEFORE SUBMITTING ORDERS
AND VERIFY VEHICLE AVAILABILITY.*
Attachment 3
ITEM NO. 13.
STATE OF CALIFORNIA
DEPARTMENT OF GENERAL SERVICES
PROCUREMENT DIVISION
Contract (Mandatory) 1-22-23-14C
Contract User Instructions, Supplement 2
All changes to most recent Supplement are in bold red italic. Additions are enclosed in asterisks; deletions are enclosed in brackets.
SUMMARY OF CHANGES
Supplement
Number Description/Articles Supplement
Date
*2* *Subject contract for Enforcement Vehicles,
Police Pursuit is hereby modified to reflect the
following changes:
Cover Page Note
Attachment A – Contract Pricing,
Supplement 2 has been updated to
reflect a price increase.
Effective February 1, 2024, orders for
25MY will be accepted.
*1/30/2024*
1 Subject contract for Enforcement Vehicles, Police
Pursuit is hereby modified to reflect the following
changes:
Attachment A – Contract Pricing,
Supplement 1 has been updated to reflect a
price increase.
Effective September 9, 2022, orders for
23MY will not be accepted and 23MY
vehicles will not be available until further
notice.
Note: The cut-off date to submit orders for 23MY is
close of business September 8, 2022.
9/2/2022
N/A Original Contract Posted 5/11/2022
All other terms and conditions remain the same.
ITEM NO. 13.
County of Placer
Procurement Services Division
2964 Richardson Drive
Auburn, CA 95603
Phone (530) 886-2122
Supplier Contract
Contract Number SCN105300
Contract Reference 97
Contract Start Date 10/01/2022
Contract End Date 09/30/2023
Buyer Javier Terrazas
Phone Number +1 (530) 889.4252 x4252
Email [email protected]
1 Supplier:
STOMMEL INC
dba LEHR
631 N MARKET BLVD STE N
SACRAMENTO, CA 95834
This Supplier Contract shall be governed by the attached terms and conditions.
Please reference the Supplier Contract number above on all invoices and correspondence related to this order.
Summary:
Emergency Response Vehicle Supplies/Equipment and Installation Services Vendor Contact: Steve Adair, Ph. #No. 916-267-5547, Email: [email protected] County Contacts:
Probation Dept. Contact (Orders and Accounting): Chris Artim, Ph. #530-889-7912, Email: [email protected] Placer County Sheriff Contact: Matt Burgans, Ph. #530-889-7865 Sheriff Accounting: Lisa Lentz, Ph. #530-889-6919, [email protected] Placer County Fire: Sarah Poindexter, Ph. #530-889-4037 Placer County Fire Accounting: Glenn Nishimoto, Ph. #530-886-4623, [email protected] Renewal of SCN104242
This is the third of four optional one-year renewal terms that were approved by the Board of Supervisors on September 24, 2019.
Payment Terms Total Contract Amount
NET 30 275,000.00
Service Lines
Line Number Description Start Date End Date Amount
1 Emergency response vehicle equipment and supplies as well as equipment installation services in accordance with the vendor's agreement to renew SCN104242 - see attached for pricing, terms, and conditions.
10/01/2022 09/30/2023 275,000.00
Attachment 4
ITEM NO. 13.
631 North Market Street Suite N, Sacramento Ca 95834
Labor Price Increase Notice
Due to wage pressure for technicians our labor rate has increased to $105 per hour Effective:
July 1, 2021
July 1, 2021
To Our Valued Customers,
Due to the State of California increasing wage pressure and industry changes our new Labor Rate will need to increase from $95.00 per hour to $105.00 per hour.
We understand that this is almost a 10% increase from the previous year. Lehr provides specialized labor for the fabrication of first responder vehicles.
Historically we have only taken two labor increases in 15 years. Wages have increased annually to allow Lehr to continue to employ certified and qualified technicians. To ensure that Lehr provides the best emergency equipment installations in the industry this increase was implemented.
If you have any questions regarding the labor increase, please reach out to:
Steve Adair
Lehr
Regional Sales Manager
631 North Market St. Suite N
Sacramento, CA 95834
Cell 916.267.5547
Fax: 916.646.6656
[email protected]
ITEM NO. 13.
Procurement Services Division
2964 Richardson Drive ▪ Auburn, CA 95603
(530) 886-2122
20000 - Emergency Response Vehicle Equipment and Installation Services Opening Date: July 30, 2019 4:45 PM
Closing Date: August 13, 2019 3:00 PM
To ensure a complete and timely response, it is strongly recommended that you submit your bid response via our Online Bidding System.
However, if you have difficult submitting your bid online or prefer to submit your bid manually (hard-copy) for any reason, print and complete this bid package along with any required bid documents, and mail or deliver in a sealed envelope to:
Placer County Procurement Services Division
2964 Richardson Drive
Auburn, CA 95603
All bids must be submitted on original documents (no fax bids) prior to the Closing Date and Time specified above and as prescribed in this bid's General Terms and Conditions. All bids must be signed by an authorized representative of the firm. UNSIGNED OR LATE BIDS WILL BE REJECTED.
Vendors shall complete the area below for hard copy submissions:
COMPANY NAME: ____________________________________________________ Mailing Address: ____________________________________________________ City/State/Zip: ____________________________________________________ Contact Person: ____________________________________________________ Telephone: ____________________________________________________ Email: ____________________________________________________ SIGNATURE: ____________________________________________________ DATE: ____________________________________________________ Title: ____________________________________________________ By signature above, bidder hereby agrees to and accepts the terms, conditions and requirements specified in this bid, including the following bid documents and all related addenda (if any).
Vendor Details
ITEM NO. 13.
Company Name: Stommel Inc
Does your company conduct business
under any other name? If yes, please
state:
Lehr Auto Electric
Address:
4707 Northgate Blvd
Sacramento, CA 95834-1120
Contact: Steve Adair
Email: [email protected]
Phone: 916-267-5547
Fax: 916-646-6656
HST#: 61-1499917
Submission Details
Created On: Thursday August 08, 2019 16:23:20
Submitted On: Tuesday August 13, 2019 11:55:35
Submitted By: Steve Adair
Email: [email protected]
Transaction #: bf9e4edd-1317-482f-9d85-05e42711727e
Submitter's IP Address: 207.242.136.194
ITEM NO. 13.
Schedule of Prices
BID PRICING WORKSHEET - Category 1
ITEM NO. DESCRIPTION UOM EST. ANNUAL
USAGE
MANUFACTURE
R
MANUFACTURERS
PART NUMBER UNIT PRICE * EXT PRICE
PRODUCT
WARRANTY
INFORMATION
(state number
of months and
any special
terms or
provisions that
may apply)
COMMENTS
1.1 Lightbar with the following
options/modifications: Add (2) LR11
Flashing Alley Lights, LED
(SRALF1); Add (2) 500 Series
inboard LED, one red and one blue
(SLDBR); Add (2) 500 Series
inboard LED, one red and one blue
(SLDBR); Add (2) TIR high output
LED take downs, flashing or steady
(SXTDLED); and Add (2) 500
Series inboard LED, amber/amber
(SLDAA).
EA 15 Whelen LFL
Liberty SW
WeCan Series
Super-LED 54"
Lightbar
SW2RRBB $1,750.0000 $ 26,250.00 60 Whelen Master
Distributor
*
1.2 Strap Kit for LFL Liberty SW
WeCan Series Super-LED 54"
Lightbar. Strap Kit shall be
compatible with Chevrolet Tahoe
Police SUVs.
EA 15 Whelen
Engineering
STPKT71 $57.0000 $ 855.00 60 Whelen Master
Distributor
*
1.3 CenCom Sapphire Siren with
amplifier control module with pigtails,
traffic advisor module, and
microphone with CCMICX20 included
(20' microphone cable).
EA 15 Whelen
Engineering
CCSRN3 $749.00 $ 60 Whelen Master
Distributor
*
1.4 PB400 Full Aluminum Push
Bumpers. Push bumpers shall be
compatible with 2015 to current
model year Chevrolet Tahoe Police
SUVs.
EA 15 Setina
Manufacturing
Bodyguard
PB400
BK0534TAH15 $319.2000 $ 4,788.00 60 Setina Master
Distributor
*
1.5 Patrol Car Seat, black, with Laguna
Seat Belts and Rear Cargo Cage.
Patrol car seat shall be compatible
with 2011 to current model year
Chevrolet Tahoe Police SUVs.
EA 15 Laguna 3P
Products
CT5502 $1,084.0000 $ 16,260.00 60 Laguna
distributor
*
1.6 Stationary Vinyl Coated Partition
with Full Lower Extension Panel.
The partition shall be compatible
with 2015 to current model year
Chevrolet Tahoe Police SUVs.
EA 15 Setina
Manufacturing 8-
VS Series
PK0369TAH10SCA $599.2500 $ 8,988.75 60 correct Part
Number
PK0369TAH15S
CA
*
1.7 Shotgun Gun Lock EA 15 Santa Cruz SC-1H $77.0400 $ 1,155.60 12 #2 Key *
1.8 Ratchet Lock Gen. 2 EA 15 Santa Cruz SC-6H $131.64 12 #2 Key *
1.9 Muzzle Up Partition Mount EA 30 Santa Cruz SC-915P $69.9900 $ 2,099.70 12 Authorized Distributor
*
1.10 Siren Speaker EA 15 Whelen SA315P $199.99 24 Authorized Distributor
*
1.11 Speaker Bracket Kit for Whelen
SA315P Speaker
EA 15 Whelen SAK1 $29.40 $ 60 Authorized
Distributor
*
1.12 Plug In Headlight Flasher for 2015
to current model year Chevrolet
Tahoe Police SUVs
EA 15 SoundOff ETHTAHO-07 $65.7200 $ 985.80 60 Authorized Distributor *
1.13 Vertex Super-LED Light, Single SelfContained Hemispheric Light, Color: BLUE
EA 45 Whelen VTX609B $84.99 $ 60 Authorized
Distributor *
1.14 Vertex Super-LED Light, Single SelfContained Hemispheric Light, Color: RED
EA 45 Whelen VTX609R $84.99 $ 60 Authorized
Distributor *
1.15 Vertex Super-LED Light, Single SelfContained Hemispheric Light, Color: CLEAR
EA 45 Whelen VTX609J $$84.99 $ 60 Authorized
Distributor *
1.16 LIN3 Series Super-LED Lighthead,
Horizontal Mounting, Color: BLUE
EA 15 Whelen RSB02ZCR $$66.60 $ 60 Authorized
Distributor
*
1.17 LIN3 Series Super-LED Lighthead,
Horizontal Mounting, Color: RED
EA 15 Whelen RSR02ZCR $66.60 $ 60 Authorized
Distributor
*
1.18 Mounting Bracket for LIN3 Series
Super-LED Lighthead (Horizontal
Mounting)
EA 30 Whelen RBKT1 $10.80 $ 60 Authorized
Distributor *
ITEM NO. 13.
1.19 PAR46 LED Flood - Spotlight EA 25 Whelen
Engineering
P46FLC $154.99 $ 60 Authorized
Distributor
*
1.20 PAR46 LED Spot - Spotlight EA 25 Whelen
Engineering
P46SLC $154.99 $ 60 Authorized
Distributor
*
1.21 Magnetic Mic Kit EA 25 Whelen
Engineering
MMSU-1 $34.9500 $ 873.75 12 Authorized
Distributor
*
1.22 Blac-Rac Weapon Mount EA 20 Blac-Rac 1082E $861.75 $ 12 Authorized Distributor
*
1.23 Chargeguard-Select Auto Shut-Off
Timer
EA 15 Havis Inc. CG-X $71.3800 $ 1,070.70 36 Authorized Distributor
*
1.24 Littlite 12" Gooseneck Lamp with
Rehostat Control, Gooseneck
Extends From End of Chassis, Lead
Extends From Bottom of Chassis.
EA 15 Federal Signal LF12ERB $57.7500 $ 866.25 60 Authorized Distributor
*
1.25 Patrol Vehicle "Placer" Console,
consisting of the following
components:Arm Rest w/2"
Extension - Lehr Auto Electric
Model# PARM002Tall, Arm Rest
Pad - Lehr Auto Electric Model#
PARP, XTL2500 3" Faceplate -
Troy Products Model#FP-MXTL5000,
Cencom 4" Faceplate - Troy
Products Model#FP-WC10285909,
1" Blank - Troy Products Model# FPBLNK1, 2" Blank - Troy Products Model# FP-BLNK2, 4" Beverage
Holder - Troy Products Model#
EA 12 Lehr Auto
Electric
PCC001 $1,142.0000 $ 13,704.00 60 Authorized
Distributor
*
1.26 Mount Kit EA 1 Troy Products AC-EXP03 $117.1800 $ 117.18 60 limited Lifetime *
1.27 Speaker EA 1 Code 3 C3100ENO7 $178.3800 $ 178.38 24 Authorized Distributor
*
1.28 12" Litlite Console Light EA 1 Feederal Signal LF12TRB $66.95 60 Authorized Distributor
*
1.29 3 Accessory Outlet EA 2 Able2 Shoe-Me 14.0553 $21.9500 $ 43.90 24 Authorized Distributor
*
1.30 Dual Stacked LED X Light EA 2 Code 3 LXEX2F-RR $411.10 $ 60 Authorized Distributor
*
1.31 Wig-Wag EA 1 Sound Off LAROOBK $42.6000 $ 42.60 60 Authorized Distributor
*
1.32 Double Beam Halogen Work Lamp
12V
EA 2 Hella 006991663 AS 115 $41.8200 $ 83.64 12 Authorized Distributor
*
1.33 LED Strip Light EA 1 Whelen PSC0CDCR $ 112.20 $ 60 Authorized Distributor
*
1.34 2007-2010 Ford Expedition Base EA 1 Gamber Johnson 7160-446- $113.4000 $ 113.40 60 Part Number 7160-0046
*
1.35 Mongoose 9" Locking Slide Arm w/o
Standard Attachment
EA 1 Gamber Johnson 7160-0219 $247.8000 $ 247.80 60 Part has been discontinued
replacement
quoted 7160-
0220
*
1.36 Tlt Swivel Attachment EA 1 Gamber Johnson DS-CLEVIS $56.0000 $ 56.00 60 Discontinued part -
replacement
quoted 7110-
1008
*
1.37 Radio Ray Wireless Spot Light EA 1 GoLight 7900 $244.1100 $ 244.11 36 Limited 3yr warranty
*
1.38 18" Console EA 1 Troy Products CC-MC18 384.48 $ 60 Authorized Distributor
*
Subtotal: $ 124,020.15
ITEM NO. 13.
ITEM NO. 13.
Bid Questions
Delivery Time: Bidders shall indicate their delivery time (after an order is received) for items specified in this bid without installation services in the space provided. Indicate your Delivery Time in Days
Delivery time 2-21 days. (In stock items 1-2 days, Items needed to be ordered up to 3 weeks however we stock many of your every day items.)
Turnaround Time: Bidders shall indicate their normal
turnaround time for a fully installed emergency vehicle in the space provided. Indicate your Turnaround Time in
Days
3-5 business days
**Note: If installation service is needed on behalf of Placer County Fire Department, the County intends to deliver and pick up the vehicles at the successful firm's location. As an option, Placer County Fire may require the successful firm to pick up and/or deliver a vehicle. Bidder shall provide rates for pick up and delivery service to be charged oneway, from vendor's shop to Placer County Fire facility only.**
$65 per hour based on Map Quest travel time 35 minutes travel time Travel Rate: Bidders shall provide rates for pick up and delivery service to be charges one-way, from the vendor's shop to the Placer County Fire Department address:
13760 Lincoln Way Auburn, CA 95603. Indicate your travel rate
$65 per hour based on Map Quest travel time 35 minutes travel time Travel Time: Bidders shall provide rates for pick up and delivery service to be charges one-way, from the vendor's shop to the Placer County Fire Department address:
13760 Lincoln Way Auburn, CA 95603. Indicate your
Travel Time
$65 per hour based on Map Quest travel time 35 minutes travel time Documents
Upload additional information here - optional, unless otherwise denoted as mandatory (with asterisk):
Additional Document - Additional Discounts.xlsx - Tuesday August 13, 2019 11:36:56
ITEM NO. 13.
Attachment A
Bid No. 20000
COUNTY OF PLACER
EMERGENCY RESPONSE VEHICLE EQUIPMENT AND INSTALLATION SERVICES
SUPPLEMENTAL TERMS AND CONDITIONS
1. DOCUMENTS
Below are the documents associated with this bid.
Attachment A – Supplemental Terms and Conditions
Attachment B – Scope of Work
Attachment C – Insurance Requirements
Attachment D – Lightbar Configuration (Patrol Vehicle)
2. OVERVIEW
Placer County is soliciting bids for the purchase and installation of emergency response vehicle equipment & related supplies for the Placer County sheriff’s Office and Placer County Fire Department. Placer County intends to award a supplier contract for the purchase emergency response vehicle equipment and installation services on an as-needed basis. The items, quantities, sample jobs, services, and occurrences listed in this bid represent the County’s estimated annual requirements and will be utilized for evaluation purposes only. The County does not guarantee any minimum or maximum quantities that will be purchased or minimum or maximum dollar amounts to be spent throughout the term of the resulting agreement(s). Please note that the County requires NEW PRODUCT ONLY – No refurbished, demo, or restored products will be accepted unless specifically authorized by County staff.
3. PRICING
Responding bidders shall indicate their hourly shop rate for the services described herein as well as provide firm, fixed prices and discounts off list prices for the emergency response vehicle equipment and supplies listed in this bid for the initial contract period of approximately one year from the date this bid is awarded. Pricing offered in the bid line items herein shall be for services provided during the successful firm’s normal business hours. Overtime will not be required. The bidder’s shop labor rate per hour offered herein shall apply to all vehicle and equipment makes, models, and types.
The prices offered by bidders shall be exclusive of sales tax (applicable sales tax shall be added to the County’s invoices). The discounts offered by bidders for the brands listed in this solicitation shall be calculated and billed in addition to any invoice terms that are offered.
All rates shall be billed in accordance with the bidders offered pricing. The County will not accept or pay any premiums, administrative surcharge costs, or any other surcharges that are not identified in the bidder’s response. Charges imposed by the State of California or Federal Government after the bid has been awarded will be honored.
ITEM NO. 13.
Attachment A
Bid No. 20000
4. AWARD
4.1. This bid shall be evaluated and awarded by an all-or-none basis. The bid evaluation will consider the total cost to install the Sheriff’s Office patrol vehicle equipment into a typical Chevrolet Tahoe 4x2 and 4x4 for items 1.1 through 1.25 and a Ford Expedition for the Placer County Fire Department for items 1.26 through 1.38 for evaluation purposes. This cost will be determined by multiplying the firm’s shop labor rate by the total estimated time to install the equipment, as determined by the County. The estimated installation time will be 18 hours of labor for evaluation purposes only. Local Vendor Preference (if applicable), prompt payment discounts, optional pick up/delivery rates, travel time, travel time rate, turnaround time, and adherence to all conditions and requirements of this bid will also be considered.
Bidders are not required to bid on all categories to be considered for award however Placer County reserves the right to award the bid based on pricing offered for the most categories.
4.2. An example of a typical Chevrolet Tahoe patrol vehicle installation includes the following equipment (manufacturer or supplier is shown in parenthesis – no substitutions):
Light Bar System (Whelen/Cencom)
Headlight Flasher (Soundoff)
Siren Speaker and Bracket (Whelen)
Maplight (Little Lite)
Radio Mounting Console (Lehr)
Cage (Setina)
Gun Locks – 2 per vehicle (Santa Cruz)
Push Bumper (Setina)
All emergency equipment, dome light, and spotlight are required to be wired to an auxiliary power source in the rear of the vehicle. All power should be timed and disconnected as to protect the vehicle from a dead battery.
4.3. Other public agencies may elect to “piggyback” on the County’s resulting agreement(s). It will be the responsibility of the other agencies to execute separate contracts with the successful bidder(s) at the same bid pricing (refer to this Bid’s General Terms and Conditions, Section 22) through the end of the initial contract period. Any subsequent renewal pricing and terms successfully negotiated between Placer County and the successful bidder(s) would be made available to those other agencies.
5. DELIVERY REQUIREMENTS
5.1. Bidder’s pricing for equipment and supplies shall be FOB Destination, freight prepaid and assumed by the successful bidder, inside delivery to the following address:
Placer County Sheriff’s Office
2929 Richardson Drive, Ste. A
Auburn, CA 95603
Placer County Fire Department
13760 Lincoln Way
Auburn, CA 95603
ITEM NO. 13.
Attachment A
Bid No. 20000
5.2. The successful bidder shall deliver regular orders within five (5) business days of order placement for the complete order (no partial deliveries will be allowed unless specifically approved by County staff at the time the order is placed). There will also be occasions where the County will need to place an emergency order, which shall be defined as items which are so urgently needed that they must be delivered within forty-eight (48) hours of placing the order or items that are not available from the vendor’s normal inventory. In these instances actual freight charges will be allowed with written approval from the County employee placing the order. All freight charges shall be prepaid by the vendor and added to the resulting invoice. Freight collect charges will not be allowed. The vendor shall clearly advise County personnel of such emergency order circumstances for authorization at the time the order is placed with the vendor.
5.3. If the County’s orders are not delivered within the delivery times specified herein, the County reserves the right to cancel the order and obtain the products from another source. In the event that the County must make such open market purchases, the County reserves the right to exercise the provisions of Section 17 of this bid’s General Terms and Conditions.
Continued non-compliance with the stated delivery times may be cause for cancellation of the resulting agreement.
6. PRICE LISTS
Placer County requests that the successful bidder provide price lists upon award of the resulting agreement for each of the manufacturer discounts offered in the successful bidder’s completed Bid Pricing Worksheet. The County will accept electronic versions of the price lists if hard copies are not available (e.g. CD’s, flash drives, etc.). These lists will be used to verify the discount pricing on the resulting invoices. All price lists shall be provided free of charge to the County. The County also prefers that the successful bidder(s) state the manufacturer’s list price, the bidder’s offered discount off list price, and the net price for each part purchased on the resulting invoices. The successful bidder shall be responsible for notifying the Placer County Sheriff’s Office primary contact as well as the Procurement Services Division of any changes or updates to the bidder’s/manufacturer’s published catalog/list prices that occur during the contract period.
7. INSURANCE REQUIREMENTS
The successful bidder shall be required to furnish a certificate of insurance within ten (10) calendar days following receipt of a Notice of Award demonstrating proof of coverage in the amounts specified in Attachment C, Insurance Requirements.
8. SUBCONTRACTING
The successful bidder shall not subcontract any portion of the work to be performed under the resulting agreement.
9. EQUIVALENT/ALTERNATE OFFERS
Due to the standardization of the County’s emergency response vehicle equipment including the County’s inventory of repair/replacement parts as well as staff training issues, bids will only be accepted for the brand and model emergency response vehicle equipment and supplies specified in the Bid Worksheet.
ITEM NO. 13.
Attachment A
Bid No. 20000
10. SERVICE STANDARDS
The successful bidder shall provide all necessary personnel, tools, parts, materials, and equipment to perform the services described herein. The successful bidder shall perform all work in such a manner as to meet all accepted standards for safe practices for emergency response vehicle equipment installation services and to safely maintain stored equipment or other hazards consequential or related to the work. The successful bidder agrees to accept the sole responsibility for complying with all local, County, State or other legal requirements at all times including, but not limited to, O.S.H.A. and CAL. O.S.H.A. Safety Orders. The successful bidder must meet all EPA standards as well as all Federal, State, and Local laws, standards, and regulatory and permitting requirements while performing services on behalf of Placer County.
11. WORKMANSHIP
All services shall be performed in accordance with the highest standards prevailing in the trades. All of the successful bidder’s employees shall be especially skilled and appropriately trained and certified for the kind of work for which they are employed. Should the successful bidder’s Manager and/or Placer County staff deem anyone employed by the successful bidder incapable of completing the work required, the successful bidder shall immediately dismiss the employee from performing services on behalf of the County. Such removal shall not be considered a basis for employee’s claim for compensation or damages against the County, or any of its officers or agents.
ITEM NO. 13.
Attachment B
Bid No. 20000
COUNTY OF PLACER
EMERGENCY RESPONSE VEHICLE EQUIPMENT AND INSTALLATION SERVICES
SCOPE OF WORK
1.0 The successful bidder shall be regularly established in the business of routine emergency vehicle lighting and equipment installation services on a variety of patrol vehicles, light trucks, and fire trucks. Responding firms shall have staff experienced in the installation of law enforcement and fire department radios, “Code 3” emergency equipment, prisoner partitions, mounting consoles, trunk racks, cages and gun locks at a minimum.
2.0 The successful bidder shall be qualified and capable of performing equipment installation services on various types of emergency response vehicles and equipment including, but not limited to, law enforcement sedans, sport utility vehicles, trucks, undercover vehicles, trailers, off-highway vehicles, and boats, including Type I and Type II engines.
3.0 Time is of the essence in returning County vehicles to service. The successful bidder agrees that work performed under the resulting agreement shall receive top priority over other work in the successful bidder’s shop. If the County determines that the workload of the successful bidder is such that timeliness is not possible in a given situation, the County reserves the right to assign the job to another vendor.
4.0 In the event that the successful bidder is unable to respond or complete the requested services within the bidder’s stated turnaround time, the successful bidder shall notify the County designated contact person immediately prior to commencing work. The County at its sole discretion may elect to utilize the services of another vendor in such instances and will notify the successful bidder if such intention is to be exercised.
5.0 The successful bidder agrees that the County has the right to view any work performed on a County vehicle at the successful bidder’s facility at any time, whether or not services have been completed. The successful bidder agrees that the County has the right to audit any work performed by the successful bidder.
6.0 The successful bidder warrants the goods furnished to be of the highest quality, complying with the specifications and free from all defects whatsoever in workmanship and materials, for a minimum period of one year from the date of delivery. Replacements and repairs under this warranty are to be made by the successful bidder at no cost and to the satisfaction of the County. Equipment installations shall be guaranteed for as long as the County owns/possesses the vehicle.
7.0 The successful bidder agrees that the County has the right to make the final determination as to whether services have been satisfactorily completed. The successful bidder shall include County staff on a walk-through of the vehicle to confirm that all equipment is installed and functioning correctly and testing the equipment prior to the County's acceptance of the work as being completed. Should any portion of the work to be done which, due to any cause, is not in accordance with the specifications or is not satisfactorily completed, it will be rejected and the successful bidder shall immediately make a satisfactory arrangement with the County before proceeding with other work. The successful bidder shall promptly correct all work rejected by the County as faulty, defective, or failing to conform to the product specifications or scope of
ITEM NO. 13.
Attachment B
Bid No. 20000
work defined herein, whether observed before or after substantial completion of the work and whether or not inspected, tested, repaired, fabricated, installed, or completed. The successful bidder shall bear all costs of correcting such rejected work. This provision applies during the contract term and any resulting renewal periods.
8.0 The successful bidder shall be held responsible for any breakage or loss of the County’s vehicles or equipment while performing service on the County’s vehicles. The successful bidder shall be responsible for restoring or replacing any equipment, vehicle, etc. so damaged to the satisfaction of the County and at the sole expense of the successful bidder. The successful bidder shall immediately report to the County any damages to the vehicle or equipment resulting from services performed under the resulting agreement.
9.0 The successful bidder, at the County’s request, shall provide a field representative to meet with County personnel at least once a month to review the department's inventory levels, discuss the department's emergency lighting and equipment requirements and introduce additional products to address any County needs. The successful bidder shall also have technical staff available to conduct scheduled on-site meetings at the County’s request. The successful bidder shall provide inside sales support capable of providing product specification sheets, quotations, order placement and expediting, via fax and telephone at the County’s request.
ITEM NO. 13.
Attachment C
Bid No. 20000
PLACER COUNTY INSURANCE REQUIREMENTS
1. HOLD HARMLESS AND INDEMNIFICATION AGREEMENT
The CONTRACTOR shall save, keep, hold harmless, defend, and indemnify PLACER COUNTY from all damages, 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 any willful or negligent act or omissions of the CONTRACTOR, any of the CONTRACTOR'S employees, or any subcontractors.
The CONTRACTOR shall be responsible for any liability imposed by law and for death, injury, or damage to property of any person including, but not limited to, workmen, subcontractors, and the public, resulting from any cause whatsoever during the progress of the work or at any time before its completion and final acceptance.
If any judgment is rendered against PLACER COUNTY for any injury, death, or damage caused by CONTRACTOR as a result of work performed or completed, pursuant to this agreement, CONTRACTOR shall, at its own expense, satisfy and discharge any judgment.
As used above, the term PLACER COUNTY means PLACER COUNTY, its officers, agents, employees, and volunteers.
2. INSURANCE:
CONTRACTOR shall file with the COUNTY concurrently herewith a Certificate of Insurance, in companies acceptable to COUNTY, with a Best's Rating of no less than A- :VII showing.
3. WORKER'S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:
Worker's Compensation Insurance shall be provided as required by any applicable law or regulation. Employer's liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bodily injury by accident, one million dollars ($1,000,000) policy limit for bodily injury by disease, and one million dollars ($1,000,000) each employee for bodily injury by disease.
If there is an exposure of injury to PROVIDER'S employees under the U.S. Longshoremen's and Harbor Worker's Compensation Act, the Jones Act, or under laws, regulations, or
ITEM NO. 13.
Attachment C
Bid No. 20000
statutes applicable to maritime employees, coverage shall be included for such injuries or claims.
Each Worker's Compensation policy shall be endorsed with the following specific language:
Cancellation Notice - “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to the County of Placer.”
Waiver of Subrogation - The workers’ compensation policy shall be endorsed to state that the workers’ compensation carrier waives its right of subrogation against the County, its officers, directors, officials, employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by the CONSULTANT.
CONTRACTOR shall require all SUBCONTRACTORS to maintain adequate Workers' Compensation insurance. Certificates of Workers' Compensation shall be filed forthwith with the County upon demand.
4. GENERAL LIABILITY INSURANCE:
A. Comprehensive General Liability or Commercial General Liability insurance covering all operations by or on behalf of CONTRACTOR, providing insurance for bodily injury liability and property damage liability for the limits of liability indicated below and including coverage for:
(1) Products and completed operations;
(2) Contractual liability insuring the obligations assumed by CONTRACTOR in this Agreement; and
(3) Broad form property damage (including completed operations) Except with respect to bodily injury and property damage included within the products and completed operations hazards, the aggregate limits, where applicable, shall apply separately to CONTRACTOR'S work under the Contract.
B. One of the following forms is required:
(1) Comprehensive General Liability;
(2) Commercial General Liability (Occurrence); or
(3) Commercial General Liability (Claims Made).
C. If CONTRACTOR carries a Comprehensive General Liability policy, the limits of liability shall not be less than a Combined Single Limit for bodily injury, property damage, and Personal Injury Liability of:
One million dollars ($1,000,000) each occurrence
ITEM NO. 13.
Attachment C
Bid No. 20000
Two million dollars ($2,000,000) aggregate
D. If CONTRACTOR carries a Commercial General Liability (Occurrence) policy:
(1) The limits of liability shall not be less than:
One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
One million dollars ($1,000,000) for Products Completed Operations Two million dollars ($2,000,000) General Aggregate
(2) If the policy does not have an endorsement providing that the General Aggregate Limit applies separately, or if defense costs are included in the aggregate limits, then the required aggregate limits shall be two million dollars ($2,000,000).
E. Special Claims Made Policy Form Provisions:
CONTRACTOR shall not provide a Commercial General Liability (Claims Made) policy without the express prior written consent of COUNTY, which consent, if given, shall be subject to the following conditions:
(1) The limits of liability shall not be less than:
One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
One million dollars ($1,000,000) aggregate for Products Completed Operations
Two million dollars ($2,000,000) General Aggregate
(2) The insurance coverage provided by CONTRACTOR shall contain language providing coverage up to one (1) year following the completion of the contract in order to provide insurance coverage for the hold harmless provisions herein if the policy is a claims-made policy.
Conformity of Coverages - If more than one policy is used to meet the required coverages, such as a separate umbrella policy, such policies shall be consistent with all other applicable policies used to meet these minimum requirements. For example, all policies shall be Occurrence Liability policies or all shall be Claims Made Liability policies, if approved by the County as noted above. In no cases shall the types of polices be different.
5. ENDORSEMENTS:
Each Comprehensive or Commercial General Liability policy shall be endorsed with the following specific language:
ITEM NO. 13.
Attachment C
Bid No. 20000
A. "The County of Placer, its officers, agents, employees, and volunteers are to be covered as an additional insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement." B. "The insurance provided by the Contractor, including any excess liability or umbrella form coverage, is primary coverage to the County of Placer with respect to any insurance or self-insurance programs maintained by the County of Placer and no insurance held or owned by the County of Placer shall be called upon to contribute to a loss."
C. “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to the County of Placer.”
6. AUTOMOBILE LIABILITY INSURANCE:
Automobile Liability insurance covering bodily injury and property damage in an amount no less than one million dollars ($1,000,000) combined single limit for each occurrence.
Covered vehicles shall include owned, non-owned, and hired automobiles/trucks.
7. ADDITIONAL REQUIREMENTS:
Premium Payments - The insurance companies shall have no recourse against the COUNTY and funding agencies, its officers and employees or any of them for payment of any premiums or assessments under any policy issued by a mutual insurance company.
Policy Deductibles - The CONTRACTOR shall be responsible for all deductibles in all of the CONSULTANT’s insurance policies. The maximum amount of allowable deductible for insurance coverage required herein shall be $25,000.
CONTRACTOR’s Obligations - CONTRACTOR’s indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this agreement.
Verification of Coverage - CONTRACTOR shall furnish the County with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the County before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the CONTRACTOR’s obligation to provide them. The County reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
ITEM NO. 13.
Attachment C
Bid No. 20000
Material Breach - Failure of the CONTRACTOR to maintain the insurance required by this agreement, or to comply with any of the requirements of this section, shall constitute a material breach of the entire agreement.
Certificate Holder –Placer County subscribes to a service that monitors insurance certificates for compliance with the above requirements. The Certificate Holder on insurance certificates and related documents should read as follows:
County of Placer
c/o EXIGIS LLC
PO Box 4668 ECM #35050
New York, NY 10168-4668
Fax: 888-355-3599
Email: [email protected]
Upon initial award of a contract to your firm, Exigis will contact you with further instructions for providing insurance certificates which meet the terms of the contract.
Certificates which amend or alter the coverage during the term of the contract, including updated certificates due to policy renewal, should be sent directly to Exigis via fax or email as indicated above.
***SOLE PROPRIETER LANGUAGE:
Workers’ Compensation
CONTRACTOR represents they have no employees and, therefore, not required to have Workers’ Compensation coverage.
CONTRACTOR agrees they have no rights, entitlements or claim against COUNTY for any type of employment benefits or workers’ compensation or other programs afforded to COUNTY employees.
ITEM NO. 13.
ITEM NO. 13.
Terms & Conditions
INVITATION FOR BIDS
GENERAL TERMS AND CONDITIONS
The following provisions are hereby made a part of this Invitation for Bids ("bid") by reference and attachment to the Invitation for Bids document. Any contract award made as the result of this bid shall be governed by these General Terms and Conditions. By submission of a bid, bidder does agree if the bid is accepted within 90 calendar days from the date of opening, to furnish to furnish the product(s) and/or service(s) pursuant to these conditions. In the event of a contract award pursuant to this bid, performance by the successful bidder of any or all of the services, or delivery of any or all of the products defined herein, shall constitute acceptance of all terms, conditions and requirements of the resulting agreement.
WARNING: It is the bidder’s responsibility to monitor the County’s website for possible addenda to this bid to inform him/herself of the most current specifications, terms, and conditions (see also Section 4 below), and to submit his/her bid in accordance with the original bid requirements and all addenda. All available bids and related addenda can be found at: https://placer.bidsandtenders.net. Failure of bidder to obtain this information shall not relieve him/her of the requirements contained therein. Additionally, failure of bidder to respond to any addenda, when required, may be cause for rejection of his/her bid.
1. GENERAL. These provisions are standard for all County contracts. The County may delete or modify any of these standard provisions for a particular contract by indicating a change in the special instructions to bidders or in the bid. Any bidder accepting a contract award as the result of this bid agrees that the provisions included within this Invitation for Bid shall prevail over any conflicting provision within any standard form contract of the bidder.
2. SUBMISSION OF BIDS. Bids shall be submitted to the Procurement Services Division either online, by using the Placer County EBid System, or in hard-copy form (see below for instructions). All bids must be submitted prior to the date and time specified in this solicitation. Bids shall be submitted by an employee who is authorized to commit his/her firm or organization to the provisions of the bid. Any exceptions to the specifications, terms, or conditions of this solicitation shall be clearly indicated by bidder.
SUBMISSION OF HARD-COPY BIDS. Bidders who wish to submit bids in hard-copy form in lieu of using the Placer County EBid System shall submit their bids to the Procurement Services Division, 2964 Richardson Drive, Auburn, California, 95603, between the hours of 8:00 am and 5:00 PM (Pacific), Monday through Friday (excluding County holidays). Hard-copy bids shall be submitted in a sealed envelope which clearly identifies the bid number, commodity, and closing date and time. Bids shall be submitted on the bid forms provided by the County, which may be downloaded from the EBid System or obtained from Procurement Services. Hard-copy bids must be signed by an authorized employee of the firm. The County shall not be responsible for bids delivered to a person/location other than that specified herein. Bids shall be in ink or typewritten and all changes and/or erasures shall be initialed and dated in ink. Any exceptions to the specifications, terms, or conditions of this solicitation shall be clearly indicated by bidder, without obliterating the original text or images contained herein.
WARNING: Late bids or unsigned bids shall not be accepted under any circumstances. Facsimile or telephone bids shall not be accepted.
3. AMENDMENTS TO THE BID. Any amendment to this bid is valid only if in writing and issued by the Placer County Procurement Services Division.
REQUESTS FOR CLARIFICATION/INFORMATION. Bidders are instructed to contact the Placer County Buyer/Contact Person(s) specifically identified in this bid for further clarification or information related to the specifications, terms, conditions, or evaluation of this bid. Information provided by other than the named contact person may be invalid, and responses which are submitted in accordance with such information may be declared non-responsive. Additionally, contacts made with other County staff in an attempt to circumvent or interfere with the County’s standard bidding and evaluation practices may be grounds for disqualification of the bidder. Questions should be submitted using the Question tool on the Bids&Tenders site. Questions submitted within four (4) County working days of the bid opening date may not be answered.
4. NON-COLLUSION. The bidder certifies that his bid is made without any previous understanding, agreement or connection with any person, firm or corporation making a bid for the same project and is in all respects fair, without outside control, collusion, fraud or otherwise illegal action.
5. CONFLICT OF INTEREST. Bidder states that no County officer or employee, nor any business entity in which they have an interest, has an interest in the bid awarded or has been employed or retained to solicit or aid in the procuring of the resulting contract, nor will any such person be employed in the performance of such contract.
6. AWARD. The contract may be awarded to the lowest responsible and responsive bidder complying with the provisions of the Invitation for Bid. In determining whether a bid is lowest and responsive, and the bidder responsible, the following may be considered by the County: a) Ability to perform the service required within the specified time; b) Reputation, judgment and experience; c) The quality of performance in previous contracts; d) Previous compliance with laws, as well as employment practices; e) Financial ability to perform the contract; f) The quality, availability and adaptability of the supplies or the contractual services to the particular use required; g) Ability to provide maintenance and service; h) Whether the bidder is in arrears to the County, in debt on contract, is a defaulter on surety to the County or whether the bidder’s taxes or assessments are delinquent; i) The resale value and life cycle costs of the items; j) Such other information as identified in the Purchasing Policy Manual having bearing on the decision to make the award. The award analysis will also include consideration for Local Vendor Preference (per Section 18 below) and any prompt pay discounts offered by the bidder (per Section 19 below). The County reserves the right to reject any and all bids and to waive any informality in bids received whenever such rejection or waiver is in the interest of the County. The County also reserves the right to reject the bid of a bidder who has previously failed to perform properly. The County may award bids by line item, category, or on an all-or-none basis.
7. MERCHANTABILITY. There shall be an implied warranty of merchantability and fitness for an intended use. Any bid submittals taking exception to this requirement may, at the County’s option, be considered non-responsive.
8. SAMPLES. Samples of items, when required, must be furnished free of expense to Placer County and if not destroyed by tests will, upon request, be returned at bidder’s expense. Samples of selected items may be retained for comparison.
9. MANUFACTURER’S NAME AND APPROVED EQUIVALENTS. Unless otherwise specified, manufacturer’s names, trade names, brand names, information and/or catalog numbers listed in a specification are intended only to identify the quality level desired. They are not intended to limit competition. The bidder may offer any equivalent product, which meets or exceeds the specifications. If bids are based on equivalent products, the bids must: 1) Indicate on the bid form the alternate manufacturer’s name and catalog number; 2) Include complete descriptive literature and/or specifications; 3) Include proof that the proposed equivalent shall meet the specifications. The County reserves the right to be the sole judge of what is equal and acceptable. If bidder fails to name a substitute, goods identical to the bid standard must be furnished.
10. INSURANCE AND INDEMNIFICATION. The awarded bidder may be required to provide proof of liability, automobile, and/or workers compensation insurance. If required, the minimum coverage requirements will be identified in the bidding documents. All costs of complying with the insurance requirements shall be included in your pricing. The selected firm shall provide complete and valid insurance certificates within ten (10) days of the County’s written request. Failure to provide the documents within the time stated may result in the rejection of the bid response and/or cancellation of the resulting contract or purchase order.
Unless indemnification requirements are stated otherwise in this solicitation, said requirements shall be as follows: The awarded bidder ("Contractor") hereby agrees to protect, defend, indemnify, and hold Placer County free and harmless from any and all losses, claims, liens, demands, and causes of action of every kind and character including, but not limited to the amounts of judgments, penalties, interest, court costs, legal fees, and all other expenses incurred by Placer County arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to property (including employees or property of the County) and without limitation by enumeration, all other claims or demands of every character occurring or any way incident to, in connection with or arising directly or indirectly out of, the contract or agreement. The Contractor agrees to investigate, handle, respond to, provide defense for, and defend any such claims, demand, or suit at the sole expense of the Contractor. Contractor also agrees to bear all other costs and expenses related thereto, even if the claim or claims alleged are groundless, false, or fraudulent. This provision is not intended to create any cause of action in favor of any third party against Contractor or the County or to enlarge in any way the Contractor’s liability but is intended solely to provide for indemnification of Placer County from liability for
ITEM NO. 13.
damages or injuries to third persons or property arising from Contractor’s performance pursuant to the resulting contract or agreement.
11. FORCE MAJEURE. If an emergency or natural disaster causes delay or interferes with the use or delivery of the products/services described in this bid, deliveries may be suspended as long as needed to remove the cause or repair the damage. An emergency or natural disaster includes fire, flood, blizzard, strike, accident, consequences of foreign or domestic war, or any other cause beyond the control of the parties. The County reserves the right to acquire from other sources any products/services during any suspension of delivery.
12. TAXES. Placer County is exempt from Federal Excise Tax; an exemption certificate will be furnished upon request. Placer County is not exempt from California State sales/use taxes. All applicable State sales/use taxes will be added to the purchase order.
13. DELIVERY. All prices bid must be FOB Destination, unloaded inside and assembled unless otherwise indicated.
14. FIXED CONTRACT QUANTITIES. Purchase order(s) for full quantities will be issued to successful bidder(s) after notification of award and receipt of all required documents.
15. OPEN-END CONTRACT. No guarantee is expressed or implied as to the total quantity of commodities/services to be purchased under any open-end contract. Estimated quantities/bid ratio or discounts from manufacturer’s list price may be used for bid comparison. The County reserves the right to: issue purchase orders as and when required; or issue a contract for individual agencies or multiple County agencies; or any combination of the preceding. No delivery shall be made without a written order by the County, unless otherwise specifically provided for in the contract. If in a subsequent year the vendor offers to supply his goods and service for the same bid price, or in the event the supplier is willing to negotiate to the satisfaction of Placer County any justifiable price increase prior to the succeeding year’s contract renewal and if the service provided by the supplier was to the satisfaction of the County, the County of Placer reserves the right to extend the period of the resulting contract on a year-to-year basis. Alternatively, the bid solicitation may set forth specific renewal terms. Bidder certifies that prices charged to the County for non-listed commodities or no-fixed price items are equal to or less than those charged the bidder’s most favored customer for comparable quantities under similar terms and conditions.
16. TERMINATION OF CONTRACT. In the event of a material breach of the contractual obligations by the Contractor, the County may terminate the contract. At its sole discretion, the County may give the contractor an opportunity to cure the breach or to explain how the breach will be cured. The actual cure must be completed within no more than 10 working days from notification, or at minimum the contractor must provide the county within 10 working days from notification a written plan detailing how the contractor intends to cure the breach. If the contractor fails to cure the breach or if circumstances demand immediate action, the County will issue a notice of immediate termination.
Supplier Contracts may be terminated by the County without cause upon 30 calendar days’ written notice.
17. NON-APPROPRIATION. In the event that sufficient funds are not appropriated and budgeted for the payment of goods or services described herein, the agreement shall immediately terminate on the last day of the fiscal period for which appropriations were received or other amounts were available to pay the amounts due under the agreement, without penalty or expense to the County of any kind whatsoever, except that the County will be liable for payment of any unpaid invoices for goods or services which were delivered prior to the end of the last fiscal period for which appropriations were made.
18. RIGHTS AND REMEDIES OF COUNTY FOR DEFAULT. If any item or service furnished by the vendor fails to conform to bid specifications, or to the sample submitted by the vendor with his bid (if any), or if the vendor fails to deliver the items or perform any services required by the contract in the time and manner prescribed, the County may reject the products and/or services provided. Upon rejection, the vendor must promptly reclaim and remove any rejected items without expense to the County, and shall immediately replace all such rejected items with others conforming to such specifications or samples, and/or correct the service deficiency. If the vendor fails to do so, the County has the right to purchase in the open market a corresponding quantity of the rejected items, or have another firm provide the required service, and to deduct from any monies due the vendor the difference between the price named in the contract or purchase order and the actual cost to the County. If the vendor breaches the contract or purchase order, any loss or damage sustained by the County in procuring items which the vendor therein agreed to supply shall be borne and paid for by the vendor. The rights and remedies of the County identified above are in addition to any other rights and remedies provided by law or under the contract. In any legal proceeding brought to enforce the terms of the herein agreement, the prevailing party shall be entitled to an award of reasonable attorney’s fees and costs incurred as a result of enforcing the terms of this agreement.
19. LOCAL VENDOR PREFERENCE. A local preference credit of 5.0% for Placer County businesses will be permitted when evaluating bids for supplies, equipment, materials and services that are not part of a public project. Bidders claiming local vendor preference must submit an Affidavit of Eligibility with their bid, unless an authorized affidavit is already on file with Placer County Procurement. Preference criteria and affidavit forms are available on our website at: https://www.placer.ca.gov/1408/LocalVendor-Preference
20. INVOICES AND PAYMENT TERMS. Invoices are to be mailed to the County department specified on the resulting purchase order or contract. All invoices must include the purchase order or contract number. Failure to comply will result in delayed payments. The County will make payment on a Net 30-day basis unless a cash discount is allowed for payment within the time period specified by vendor. The payment term shall begin on the date the merchandise is inspected, delivered and accepted by the County, or on the date a correct invoice is received in the office specified in the order, whichever is later. Prompt payment discounts shall be considered earned if payment is postmarked or personally delivered within the prescribed term. For the purposes of this section, the beginning date described above shall be considered day zero for the purposes of counting days in the prescribed term. For the purposes of bid evaluation, the County will only consider discount periods of ten (10) days or more. LATE FEES: In accordance with Section 926.10 of the California Government Code, Placer County may pay interest at not more than the rate of 6% per annum on invoices which are unpaid 61 or more days beyond the “beginning date” or “day zero” as defined above. In cases where this policy may conflict with other terms provided by the supplier, this provision shall prevail.
21. LEGAL REQUIREMENTS. Federal, State, County and local ordinances, rules and regulations, and policies shall govern development, submittal and evaluation of bids and disputes about bids. Lack of knowledge by any bidder about applicable law is not a defense.
22. ASSIGNMENT. Any contract awarded shall not be assignable by the vendor without the express written approval of the County, and shall not become an asset in any bankruptcy, receivership or guardianship proceedings.
23. OTHER AGENCIES. The successful vendor shall agree to extend Placer County contract prices and terms to other governmental agencies. Any contract resulting from this requirement shall be executed by the successful vendor and the other agency. Placer County will not be a party to “other agency” contracts.
24. PROTEST AND APPEAL PROCESS. Any actual or prospective bidder or contractor who is aggrieved in connection with the solicitation or award of a contract may protest to the Director of Administrative Services in the manner prescribed by Section 10.0 of the Placer County Purchasing Policy. The protest shall be submitted in writing to the Director of Administrative Services within seven (7) County business days after such aggrieved person or company knows or should have known of the facts giving rise thereto.
25. RECYCLED PRODUCT PREFERENCE. A preference of 10% will be given to bids for products meeting the definition of recycled product cited in Public Contract Code Sections 22150 - 22154. In order to be granted this preference bidder shall provide statements and/or documentation as supporting evidence that the product(s) meets the definition.
26. PATENT INFRINGEMENT. Supplier shall indemnify and hold harmless County, its agents and employees, against and from any and all actions, suits, liabilities, prosecutions, penalties, settlements, losses, damages, costs, charges, attorney’s fees, and all other expenses which may arise directly or indirectly from any claim that any of the products supplied by supplier infringes any patent, copyright, trade secret, or other property right.
27. VENDOR FINANCIAL STABILITY. If a vendor is currently involved in an ongoing bankruptcy as a debtor, or in a reorganization, liquidation, or dissolution proceeding, or if a trustee or receiver has been appointed over all or a substantial portion of the property of the vendor under federal bankruptcy law or any state insolvency law, the vendor must provide the County with that information as part of its bid/proposal. In accordance with Section 3.12(g) of the Placer County Purchasing Policy Manual and paragraph 8.e. of this document, the County may use information regarding a bidder’s financial responsibility when making an award determination.
The County reserves the right to take any action available if it discovers a failure to provide such information to the County, including but not limited to, a determination that the vendor should be declared non-responsible and/or non-responsive, and suspension or debarment of the vendor, in accordance with the processes defined in the Placer County Purchasing Policy Manual.
ITEM NO. 13.
By submitting a bid/proposal in response to this solicitation, the vendor agrees that if, during the term of any contract it has with the County, it becomes involved as a debtor in a bankruptcy proceeding, or becomes involved in a reorganization, liquidation, or dissolution proceeding, or if a trustee or receiver has been appointed over all or a substantial portion of the property of the vendor under federal bankruptcy law or any state insolvency law, the vendor will immediately provide the County with a written notice to that effect and that it will provide the County any relevant information requested in order for the County to determine whether the vendor has the financial ability to meet its obligations to the County.
- - End of General Terms and Conditions - -
07/25/2019
I acknowledge that I have the authority to bind the Company and submit this bid on behalf of the Company. - Steve Adair, Regional Sales Manager The Applicant declares that there is an actual or potential Conflict of Interest relating to the preparation of its submission, and/or the Applicant foresees an actual or potential Conflict of Interest in performing the contractual obligations contemplated in the bid. Yes No The Bidder acknowledges and agrees that the addendum/addenda below form part of the Bid Document Please check the box in the column "I have reviewed this addendum" below to acknowledge each of the addenda.
File Name
I have reviewed the
below addendum and
attachments (if
applicable)
Pages
There have not been any addenda issued for this bid.
ITEM NO. 13.
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/20/2025
ITEM NO: 14
DATE: May 9, 2024
TO: Mayor and Town Council
FROM: Gabrielle Whelan, Town Attorney
SUBJECT: Authorize the Town Manager to Execute a Second Contract Amendment to the Contract for Legal Services with the Law Firm of Goldfarb & Lipman to Increase the Contract Amount by $75,000 for a Total Amount Not to Exceed $240,000
RECOMMENDATION:
Authorize the Town Manager to execute a second contract amendment to the contract for legal services with the law firm of Goldfarb & Lipman to increase the total contract by $75,000 for a total amount not to exceed $240,000.
FISCAL IMPACT:
Funds have been budgeted for these services.
BACKGROUND:
In July 2022, the Town Attorney's Office entered into an agreement with the law firm of Goldfarb & Lipman LLP to provide specialized land use counsel. The Town Attorney’s Office is seeking Town Council approval of an amendment to the existing contract. Since 2022, the Town has spent $149,839.55 in consultation with Goldfarb & Lipman, primarily on Housing Element and SB 330 matters. In accordance with the Town’s purchasing policy, this is a “single source” contract in that this firm is recognized as a statewide expert in Housing Element law.
On December 3, 2024, a first contract amendment not to exceed $165,000 was executed because of the need for additional legal support to work on a variety of land use matters, including SB 330 litigation.
DISCUSSION:
The proposed second contract amendment will fund additional legal services, which will include work on general land use matters, including the Housing Element implementation, the
ITEM NO. 14.
PAGE 2 OF 2
SUBJECT: 1st Amendment to the Goldfarb & Lipman LLP Agreement DATE: May 9, 2025
processing of SB 330 planning applications, and SB 330 litigation. This item is being brought to Council for authorization in accordance with the Town’s purchasing policy, which requires Council approval for services totaling over $100,000.
CONCLUSION:
The Town Attorney’s Office recommends approval of the second contract amendment in the amount of $75,000 for a total contract amount not to exceed $240,000 because the additional legal support will support staff work on complex SB 330 issues, including litigation.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Second Amendment to Agreement
2. Amendment to Agreement with Exhibit A - Original Agreement
ITEM NO. 14.
1 of 1
Legal Services – Town of Los Gatos – Land Use Assistance
SECOND AMENDMENT TO AGREEMENT
This SECOND AMENDMENT TO AGREEMENT is dated for identification this 20th day of May, 2025 and amends that certain agreement for Goldfarb and Lipman Land Use Agreement dated July 21, 2022, made by and between the Town of Los Gatos, ("Town,") and Goldfarb & Lipman LLP.(“Consultant.”)
RECITALS
A. Town and Consultant entered into an amendment to the Land Use Agreement on November 20, 2025, (“Amendment”), a copy of which is attached hereto and incorporated by reference as Exhibit A to this Amendment.
B. Town and Consultant entered into a Land Use Agreement on July 21, 2022, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Exhibit B to this Amendment.
AMENDMENT
1. The compensation section is amended to provide for a total contract amount not to exceed $240,000.
2. All other terms and conditions of the Agreement remain in full force and effect.
Town of Los Gatos Approved as to Consent:
By: _______________________________ By:______________________________ Chris Constantin, Town Manager Barbara Kautz, Goldfarb & Lipman Department Approval:
_______________________________________
Gabrielle Whelan, Town Attorney
Approved as to Form: Attest:
______________________________ ______________________________ Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk ATTACHMENT 1 Page 530
ITEM NO. 14.
2 DATE: May 9, 2025
TO: Gabrielle Whelan, Town Attorney
FROM: Bridgette Falconio, Administrative Technician
SUBJECT: Single Source for Approval by Town Attorney: Goldfarb & Lipman LLP BACKROUND:
This contract is a “single source” purchase in conformance with the Town’s purchasing policy in that there are compelling reasons to hire this firm. The Town is seeking second amendment to a contract with Goldfarb & Lipman LLP for General Land Use Assistance in the Town. This includes work on general land use matters including housing element implementation and the processing of SB 330 planning applications. Goldfarb & Lipman LLP are statewide experts in Builders Remedy.
Recommended By: Approved By:
____________________________________ ______________________________________ Bridgette Falconio, Admin Tech Date Gabrielle Whelan, Town Attorney Date
MEMORANDUM
ITEM NO. 14.
Docusign Envelope ID: 4E92E4B6-7620-4F1B-9A8B-17B5C17E8852
AMENDMENT TO AGREEMENT
This AMENDMENT TO AGREEMENT is dated for identification this 20 day of November, 2024 and amends that certain agreement for Goldfarb and Lipman Land Use Agreement dated July 21, 2022, made by and between the Town of Los Gatos, ("Town,") and Goldfarb & Lipman LLP.("Consultant.")
RECITALS
A. Town and Consultant entered into a Land Use Agreement on July 21, 2022, ("Agreement"), a copy of which is attached hereto and incorporated by reference as Exhibit A to this Amendment.
AMENDMENT
1. The compensation is amended not to exceed $165,000.
2. All other terms and conditions of the Agreement remain in full force and effect.
Town of Los Gatos
By: l=-F-8-3-�F+•�....----------
Ch ris Constantin, Town Manager
Department Approval:
Gabrielle Whelan, Town Attorney
Approved as to Form:
!Signed by:
L::��.�
Gabrielle Whelan, Town Attorney
Legal Services -Town of Los Gatos -Land Use Assistance
1 of 1
Approved as to Consent:
r-:DocuSigned by:
By:_�-����z��
Barbara Kautz, Goldfarb & Lipman
Attest:
DocuSigned by:
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19-�e-19-G-19-��--------
Wendy Wood, CMC, Town Clerk
ATTACHMENT 2
ITEM NO. 14.
Docusign Envelope ID: 4E92E4B6-7620-4F1 B-9A8B-17B5C17E8852
MEMORANDUM
DATE: November 26, 2024
TO: Gabrielle Whelan, Town Attorney
FROM: Bridgette Falconio, Administrative Technician
SUBJECT: Single Source for Approval by Town Attorney: Goldfarb & Lipman LLP BACKROUND:
This contract is a "single source" purchase in conformance with the Town's purchasing policy in that there are compelling reasons to hire this firm. The Town is seeking an amendment to a contract with Goldfarb & Lipman LLP for General Land Use Assistance in the Town. This includes work on general land use matters including housing element implementation and the processing of SB 330 planning applications. Goldfarb & Lipman LLP are statewide experts in Builders Remedy.
Recommended By: Approved By:
��hltoWb 12/10/2024 12/11/2024
Bridgette Falconio, Admin Tech Date Gabrielle Whelan, Town Attorney Date 2
ITEM NO. 14.
Docusign Envelope ID: 4E92E4B6-7620-4F1B-9A8B-17B5C17E8852 goldfarb
lipman
attorneys
M David Kroot
Lynn Hutchins
Koren M. Tiedemann
Thomas H. Webber
Dianne Jackson Mcleon
Michelle D. Brewer
Robert C. Mills
Isabel L. Brown
James T. Diamond, Jr.
Margaret F. Jung
Heather J. Gould
William F. DiCamillo
Amy DeVaudreuil
Borbara E. Kautz
Rafael Yaqui6n
Celia W. Lee
Dolores Bostian Dalton
Joshua J. Mason
Jeffrey A. Streiffer
Elizabeth R. Klueck
Jhaila R. Brown
Gabrielle B. Janssens
Rye P. Murphy
Beniamin Funk
Aileen T. Nguyen
Katie Dahlinghaus
Matthew S. Heaton
Nozanin Salehi
Erin C. Lapeyrolerie
Minda Bou1ista Hickey
Connor T. Kratz
Los Angeles
213 627-6336
San Diego
6 I 9 239-6336
Goldfarb & Lipman LLP
1300 Cloy Street, Eleventh Floor
Oakland, California 94612
510 836-6336
July 21, 2022
Gabrielle Whelan, Town Attorney
Town of Los Gatos
110 East Main Street
Los Gatos, CA 95030
[email protected]
Re: Legal Services -Town of Los Gatos - Land Use Assistance Dear Gabrielle:
via e-mail
Goldfarb & Lipman LLP would be pleased to provide legal services to the Town of Los Gatos (the "Town") in connection with various land use matters relating to housing law, including those related to the Town's housing element, general plan, and development projects and related matters as authorized in writing by the City. However, Goldfarb & Lipman will not advise the City regarding matters related to the North Forty property because of our past representation of the developers.
I will have primary responsibility for our work with you on this matter. Our goal is to provide you with quality legal services, on schedule and at a reasonable cost. To that end, we may also draw on the services of other colleagues as needed to provide the most cost-effective services.
Our fees will be billed on an hourly basis at the rates set forth in the attached Rate Schedule, and payable monthly based on the number of hours expended on the matter.
Our billing rates for this matter reflect our discounted rates for legal advice and representation for public entity clients and are subject to the increases described in attached Goldfarb & Lipman's Legal Representation Policies and Procedures. Our hourly rates are adjusted from time to time and may change during the course of our engagement upon sixty (60) days prior written notice to you. If you choose not to consent to the increased rates, you may terminate our services by written notice effective when received by us. The time charged will include, but is not limited to, the time spent on telephone calls, emails and other electronic communications relating to the transaction, including calls and emails with Town staff and other parties and attorneys. The legal personnel 990051 \0 I \3334498.1
7/21/2022
EXHIBIT A
ITEM NO. 14.
Docusign Envelope ID: 4E92E4B6-7620-4F1B-9A8B-17B5C17E8852 Ms. Gabrielle Whelan, Town Attorney
Town of Los Gatos
July 21, 2022
assigned to this transaction may confer among themselves about the matter, as required and appropriate. When they do confer, each person will charge for the time expended, as long as the work done is reasonably necessary and not duplicative. If more than one of the legal personnel participates in a call or attends a meeting, each may charge for the time spent as appropriate. We do not anticipate the need for any travel during this engagement.
Goldfarb & Lipman may withdraw with your consent or for good cause or if permitted under the Rules of Professional Conduct of the State Bar of California and/or applicable law. Among the circumstances under which we may withdraw are: (a) with your consent; (b) if your conduct renders it unreasonably difficult for the firm to carry out the legal services effectively; and/or (c) if you fail to pay fees or costs as required by this Agreement. Notwithstanding the withdrawal, you will remain obligated to pay Goldfarb & Lipman at the agreed rates for all services provided and to reimburse for all costs advanced during the term of our engagement.
Nothing in this Agreement and nothing in our statements to you will be construed as a promise or guarantee about the outcome of the representation. Goldfarb & Lipman makes no such promises or guarantees. Goldfarb & Lipman's comments about the outcome of the representation are expressions of opinion only, are neither promises nor guarantees, and will not be construed as promises or guarantees. Any estimate of fees given by Goldfarb & Lipman is not a representation of a flat fee and will not be a limitation on fees or a guarantee that fees and costs will not exceed the amount of any deposit or estimate. Actual fees may vary from estimates given.
When signed by an authorized agent on behalf of the Town, this letter constitutes the written fee agreement with Goldfarb & Lipman LLP in connection with the work described above. This agreement does not cover litigation services of any kind, whether in court, arbitration, administrative hearings, or government agency hearings. A separate written agreement for these services or services in any other matter not described above will be required.
Please call me if you have any questions or concerns about this proposal. If the arrangement described in this letter is satisfactory, then please sign the letter in the space provided on the following page and email an electronic copy to me at: [email protected], and keep a copy for your files.
We appreciate the opportunity to work with you and Town staff members, and look forward to representing the Town of Los Gatos on this matter.
Very truly yours,
BARBARA E. KAUTZ
[email protected]
Enclosures: Rate Schedule; Billing Policies and Procedures 990051 \0 l 13334498.1
ITEM NO. 14.
Docusign Envelope ID: 4E92E4B6-7620-4F1 B-9A8B-17B5C17E8852 Ms. Gabrielle Whelan, Town Attorney
Town of Los Gatos
July 21, 2022
ACCEPTED AND AGREED:
TOWN OF LOS GATOS
By:
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712112022
ITEM NO. 14.
Docusign Envelope ID: 4E92E4B6-7620-4F1B-9A8B-17B5C17E8852 Partner
Senior Counsel
Associate
Senior Law Clerk
Law Clerk
Goldfarb & Lipman LLP
Billing Rates Per Hour
$360-$375
$355-$375
$220-$350
$210
$195
Litigation Project Coordinator $210
Project Coordinator
990051 \0 I \3334498.1
7/21/2022
$195
ITEM NO. 14.
Docusign Envelope ID: 4E92E4B6-7620-4F1B-9A8B-17B5C17E8852
GOLDFARB & LIPMAN LLP
LEGAL REPRESENTATION POLICIES AND PROCEDURES
Dear Client:
Experience has shown that the attorney-client relationship works best when there is a mutual understanding about fees and payment terms. Accordingly, this letter is intended to briefly explain our billing policies and procedures. We encourage you to discuss with us any questions you may have concerning these policies and procedures.
To determine the value of our services, we require each of our lawyers and legal assistants to maintain time records for each client and matter. The time records are reviewed monthly by the responsible billing attorney. Our billing rates for services rendered for partners, associates, and for paralegals are attached. Our hourly rates are adjusted from time-to-time (generally once a year) and may change during the course of our engagement upon 60 days prior written notice to you.
It is our policy to serve you with the most effective support systems available. Therefore, in addition to our fees for legal services, we may also charge the actual costs for messengers, delivery other than by US postal service, court costs, and other costs and expenses incurred on your behalf that are reasonably necessary for our representation of you.
Our billing statements are due and payable upon receipt. Clients whose statements are not paid within 30 days of the statement date may be assessed a late charge on the unpaid balance at the rate of one-and-a-half percent per month.
We carry professional liability insurance above the limits required by law.
It is our policy to retain and ultimately destroy all files, documents, records, and writings relating to each engagement for which we have been retained without notifying clients or former clients of the destruction of these items. At the te1mination of services and conclusion of a matter covered by this agreement, we will release promptly upon your request all of your client papers and property, subject to any protective order, state statute, or nondisclosure agreement. After seven years have passed since the conclusion of such matter, we may dispose of your client papers and property. If you wish to have us retain your papers and property beyond seven years after the conclusion of such matter, you must make separate written arrangements with us. Client papers and property include: electronic and hard copy versions of any correspondence, pleadings, deposition transcripts, exhibits, experts' reports, legal documents, physical evidence, and other items reasonably necessary to the client's representation, whether the client has paid for them or not.
In closing, let us assure you that it has always been and will continue to be our goal to provide legal services to you on the most efficient and cost effective bases possible. If you have any questions or comments regarding our billing policies, please feel free to contact us. Thank you for your continued cooperation.
99005110113334498.1
7/21/2022
Very truly yours,
GOLDFARB & LIPMAN LLP
ITEM NO. 14.
Docusign Envelope ID 4E92E486-7620-4F1B-9A88-1785C17E8852 DATE:
TO:
FROM:
SUBJECT:
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
November 21, 2024
Mayor and Town Council
Gabrielle Whelan, Town Attorney
MEETING DATE: 12/03/2024
ITEM NO: 14
Authorize the Town Manager to Execute a Contract Amendment to the Contract for Legal Services with the Law Firm of Goldfarb & Lipman to Increase the Contract Amount in an Amount Not to Exceed $165,000 RECOMMENDATION:
Authorize the Town Manager to execute a contract amendment to the contract for legal services with the law firm of Goldfarb & Lipman to increase the contract amount in an amount not to exceed $165,000.
BACKGROUND:
In July 2022, the Town Attorney's Office entered into an agreement with the law firm of Goldfarb & Lipman LLP to provide general land use assistance. The Town Attorney's Office is seeking Town Council approval of an amendment to the existing contract in the amount not to exceed $165,000. Since 2022, the Town Attorney's office has spent a total of $95,061.16 in consultation with Goldfarb & Lipman, primarily on Housing Element matters. In accordance with the Town's purchasing policy, this is a "single source" contract in that this firm is recognized as a statewide expert in Housing Element law.
DISCUSSION:
The proposed contract amendment will fund additional legal services, which will include work on general land use matters including housing element implementation and the processing of SB 330 planning applications. The Town anticipates requiring additional funds for upcoming land use matters. As such, this item is being brought to Council for authorization in accordance with the Town's purchasing policy, which requires Council approval for services totaling over $100,000.
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 • (408) 354-6832 www. los gatosca .gov Page 539
ITEM NO. 14.
Docusign Envelope ID: 4E92E4B6-7620-4F1 B-9A8B-17B5C17E8852 PAGE 2 OF 2
SUBJECT: 1'' Amendment to the Goldfarb & Lipman LLP Agreement DATE: November 21, 2024
CONCLUSION:
The Town Attorney's Office recommends approval of the contract amendment not to exceed $165,000 because the additional legal support will support staff work on a variety of land use matters.
FISCAL IMPACT:
Funds have been budgeted for these services.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Amendment to Agreement with Exhibit A - Original Agreement
ITEM NO. 14.
PREPARED BY: Jamie Field
Chief of Police
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/09/2025
ITEM NO: 15
DATE: May 9, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Adopt a Resolution Amending the Los Gatos Youth Commission Enabling Resolution and Rescinding Resolution 2018-059
RECOMMENDATION:
Adopt a resolution to approve the proposed amendments to the existing Youth Commission Enabling Resolution, which would update the current list of Town Commissions that the Youth Commission may be involved with, and modifying the membership composition, term limits, liaison roles, and commission term; and rescinding Resolution 2018-059.
STRATEGIC PRIORITIES:
The proposed resolution supports the Town Council’s Core Goals of Civic Engagement.
FISCAL IMPACT:
There is no fiscal impact associated with this action. The item does not require nor compel an allocation of public resources.
BACKGROUND:
The Los Gatos Youth Commission was established to provide a structured avenue for student engagement in municipal governance. The purpose of the Youth Commission is 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 municipal affairs. The Commission serves as a formal body by which the youth of Los Gatos have a voice in community issues.
The Youth Commission is responsible for studying various problems, activities, and concerns related to youth and advising the Town Council on matters affecting the youth of Los Gatos.
The most recent (2018) Youth Commission Enabling Resolution outlined its membership requirements, responsibilities, and liaison roles to other Town Commissions. However, practical challenges identified by staff and Youth Commission members necessitated the need for amendments to improve the commission's functionality and efficiency.
ITEM NO. 15.
PAGE 2 OF 4
SUBJECT: Revision to Current Youth Commission Resolution DATE: May 9, 2025
On November 13, 2024, the Los Gatos Youth Commission introduced the 2024-25 work plan to the Town Council. One of the items outlined in their work plan is as follows:
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
The Youth Commission agendized, discussed, and voted on several updates aimed at improving representation and ensuring a more consistent presence and operation throughout the school year. In doing so, they thoughtfully considered the academic and athletic commitments of student members, as well as school schedules, vacation periods, and transportation challenges faced by non-driving youth. The Commission also collaborated with other Town Commissions for feedback and consulted with the Town Clerk to ensure alignment with applicable laws, rules, and regulations.
On March 25, 2025, the recommendations were brought to the Policy Committee for review.
The Policy Committee suggested that Youth Commissioners participate in Board/Commission meeting discussions for Boards/Commissions on which they serve as liaisons. The Town Attorney evaluated the existence of a Youth Commissioner to be a non-voting member representing the voice of youth on Town Commissions outlined in the updated Resolution. This was determined to be within the legal boundaries for a Commission and aligns with the preferences of many members on the current Youth Commission.
FPPC Regulation 18704 defines decision-making to include discussions leading up to the decision, but that is in the context of a person who has a conflict of interest. People with conflicts of interest are not allowed to participate in discussions leading up to a decision in which they have a conflict. If there is an instance in which a Youth Commissioner will have a conflict of interest in a Board/Commission decision in which they are participating, the Youth Commissioner can be asked to recuse themselves for that item.
DISCUSSION:
1. Membership Composition
Current: The Youth Commission consists of 20 student members entering grades 8 through 12.
Proposed: Reduce the membership to 19 members to maintain an odd number for voting purposes, with representation possible from the same grade range.
ITEM NO. 15.
PAGE 3 OF 4
SUBJECT: Revision to Current Youth Commission Resolution DATE: May 9, 2025
Rationale: An odd-numbered commission ensures decisive voting outcomes and avoids tie votes. This change was supported by staff and approved by a majority vote of the Youth Commission.
2. Term Limits
Current: Members serve two-year terms, except for first-time appointees and 12th-grade appointees, who serve one-year terms.
Proposed: Implement a uniform one-year term for all members, with a mandatory interview process for reappointment. Members may serve consecutive terms if re-selected through the interview process.
Rationale: A one-year term allows for better alignment with student schedules and varying levels of commitment. It also provides an opportunity to replace inactive members while ensuring continuity for engaged participants. Additionally, this will allow for more efficient tracking and noticing for recruitment processes.
3. Youth Commission as Non-voting Liaisons to Other Town Commissions Current: Youth Commission members are appointed as voting liaisons to at least six other Town Boards and Commissions.
Proposed: Youth Commission members will serve as non-voting liaisons. However, they will be allowed to participate in discussions agendized for the Commission they are representing.
Rationale: Scheduling conflicts, transportation limitations, and academic obligations often prevent full participation in external commission meetings. This change ensures Youth Commissioners can still provide valuable input while allowing other Town Commissions to maintain quorum and fully informed membership. If a Youth Commissioner wishes to be a voting member of another commission, they may apply independently as there is not an age limit should they choose to be on a different Commission.
4. Youth Commission Year Term
Current: The Youth Commission operates from September through June, aligned with the school year.
Proposed: Adjust the final month of the Youth Commission term to May instead of June.
Rationale: The June meeting often conflicts with final exams and summer vacations, impacting engagement. Concluding in May allows for a more structured transition, including an opportunity for incoming members to observe the final meeting of the outgoing commission, fostering a smooth transition.
Update to Town Boards and Commissions listed in the Youth Commission Resolution
ITEM NO. 15.
PAGE 4 OF 4
SUBJECT: Revision to Current Youth Commission Resolution DATE: May 9, 2025
Currently the Town of Los Gatos Youth Commission Resolution lists two Commissions that are no longer in existence with the Town or have a more updated title assigned:
1. Bicycle and Pedestrian Advisory Commission
2. Transportation and Parking Commission
Staff proposes replacing these two Commissions with:
1. Diversity, Equity, and Inclusion (D.E.I.) Commission
2. Complete Streets and Transportation Commission
This is reflective of the most current list of related six Boards and Commissions in the Youth Commission Resolution and maintains the same number for involvement.
CONCLUSION:
Staff and the majority vote of Youth Commission members recommend adopting these amendments to enhance efficiency, improve engagement, and ensure the continued success of the Los Gatos Youth Commission. These changes align with the School Year 2024-25 Youth Commission Work Plan. With Council approval, the resolution will also be updated to reflect recent attendance requirements, aligning with broader Town Commission policies.
ATTACHMENTS:
1. Red-lined 2018 Resolution to reflect proposed changes
2. Proposed Resolution with red-lined changes accepted
ITEM NO. 15.
1 of 3
Resolution 20182025- Marchy 20, 2025 20, 2018
ATTACHMENT 1
RESOLUTION 202518-
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RESCINDING RESOLUTION 20186-059xxx AND
ESTABLISHING RULES FOR THE YOUTH COMMISSION
WHEREAS, it is recognized that a youth perspective on issues which pertain to the youth in the community is an important part of decision making in Town; and WHEREAS, there is value in increasing communication between adults and youth; and WHEREAS, there is value in having a mechanism for youth to have a voice in Town affairs and issues relating to youth; and
WHEREAS, the Town Council of the Town of Los Gatos found and determined that the purpose of the Youth Commission is 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.
NOW THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF LOS GATOS THAT:
1. There is a need for a Youth Commission to function in the Town of Los Gatos, which would establish a formal body by which the youth of Los Gatos would have a voice in the community.
1.2. There is hereby established a Youth Commission which shall generally be responsible for studying various problems, activities and other issues of concern to the youth in general, and for advising Council on matters pertaining to issues involving the youth of Los Gatos.
a. Membership/Organization
i. The Youth Commission shall consist of nineteentwenty (1920) members.
The members shall be students who are entering grades 8 through 12.
Membership for the students requires residency in the incorporated limits of the Town of Los Gatos or residency in the unincorporated areas of the County of Santa Clara, which have a Los Gatos mailing address. ii. ii. Members shall serve a one-year term. Members may serve consecutive terms if re-interviewed and chosen after participating in the selection process. term of two (2) years and until their successors are
ITEM NO. 15.
2 of 3
Resolution 20182025- Marchy 20, 2025 20, 2018
ATTACHMENT 2
appointed and qualified. Members who are entering grade 12 when appointed and first time appointees shall serve a term of one (1) year. iii. iii. Members act as liaisons to Adult Town Commissions and are not considered voting members. The Commission shall appoint one (1) primary member and one (1) alternate to attend serve as one voting member on the following Town Boards and Commission meetings as a non-voting liaison with the purpose of bringing information back to the Youth Commission to engage and foster a better understanding of civic process and government:
1. Arts and Culture Commission
2. Bicycle and Pedestrian Advisory Commission
3.2. Community Health and Senior Services Commission
4.3. Library Board
4. Parks Commission
5. Complete Streets and Transportation Commission
Transportation and Parking Commission
6. Diversity, Equity and Inclusion (DEI) Commission
iv. In addition to all Youth Commission meetings, the primary member shall attend all meetings of the Board or Commission they are appointed to. If the primary member is not able to attend the meeting of the Board or Commission they are assigned, it shall be the responsibility of the alternate to attend the meeting. If the primary member misses three (3) meetings of the Board or Commission the Youth Commission shall appoint a new primary member, and if necessary, a new alternate. v. Liaisons shall provide a monthly report to the Youth Commission and be responsible for conveying the Youth Commission’s input to the Board or Commission.
vi. A majority of members shall constitute a quorum for the purpose of transacting business.
vii. Commission members shall serve without compensation, provided that, with advance budgetary approval of the Town Council, the actual and necessary expenses (if any) incurred by the members in the conduct of Town business shall be reimbursable pursuant to the current Council policy.
ITEM NO. 15.
3 of 3
Resolution 20182025- Marchy 20, 2025 20, 2018
ATTACHMENT 2
3. The Commission shall hold a regular meeting at least once each month between September and May June. The Commission shall establish a regular time and location for its meetings and shall otherwise call and conduct its meetings in compliance with the provisions of the Ralph M. Brown Act (Government Code Sections 54950 and following.)
4. The Commission shall elect a Chair and Vice-Chair, both of whom shall serve at the pleasure of the Commission. Terms of office shall be for one (1) year and shall begin on the first meeting in September and end the following MayJune.
5. Minutes of the actions taken during its meetings shall be kept and filed with the Town Clerk Administrator.
6. Meeting attendance requirements will conform with all current Town Resolutions and Policies.
7. The duties of the Commission shall include the following:
a. Foster greater involvement of youth in municipal government affairs. b. Study problems, activities, and concerns of youth, especially as they relate to municipal programs or projects of the Town of Los Gatos. c. Hold forums on problems, activities and concerns of youth, either alone or in conjunction with other governmental agencies and community organizations, as the Commission deems desirable.
d. Review municipal matters referred to the Commission by the Town Council or other Town boards, committees, or commissions and, as appropriate, make recommendations on those matters.
BE IT FURTHER RESOLVED that Resolution 20162018-059 xxx is hereby rescinded.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 20th day of March, 2018 20th day of May, 2025, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ITEM NO. 15.
4 of 3
Resolution 20182025- Marchy 20, 2025 20, 2018
ATTACHMENT 2
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ITEM NO. 15.
1 of 3
Resolution 2025- May 20, 2025
ATTACHMENT 2
RESOLUTION 2025-XXX
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS RESCINDING RESOLUTION 2018-XXX AND
ESTABLISHING RULES FOR THE YOUTH COMMISSION
WHEREAS, it is recognized that a youth perspective on issues which pertain to the youth in the community is an important part of decision making in Town; and WHEREAS, there is value in increasing communication between adults and youth; and WHEREAS, there is value in having a mechanism for youth to have a voice in Town affairs and issues relating to youth; and
WHEREAS, the Town Council of the Town of Los Gatos found and determined that the purpose of the Youth Commission is 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.
NOW THEREFORE BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF LOS GATOS THAT:
1. There is a need for a Youth Commission to function in the Town of Los Gatos, which would establish a formal body by which the youth of Los Gatos would have a voice in the community.
2. There is hereby established a Youth Commission which shall generally be responsible for studying various problems, activities and other issues of concern to the youth in general, and for advising Council on matters pertaining to issues involving the youth of Los Gatos.
a. Membership/Organization
i. The Youth Commission shall consist of nineteen (19) members. The members shall be students who are entering grades 8 through 12.
Membership for the students requires residency in the incorporated limits of the Town of Los Gatos or residency in the unincorporated areas of the County of Santa Clara, which have a Los Gatos mailing address. ii. Members shall serve a one-year term. Members may serve consecutive terms if re-interviewed and chosen after participating in the selection process.
iii. Members act as liaisons to Adult Town Commissions and are not considered voting members. The Commission shall appoint one (1) primary member and one (1) alternate to attend the following Town
ITEM NO. 15.
2 of 3
Resolution 2025- May 20, 2025
ATTACHMENT 2
Board and Commission meetings as a non-voting liaison with the purpose of bringing information back to the Youth Commission to engage and foster a better understanding of civic process and government:
1. Arts and Culture Commission
2. Community Health and Senior Services Commission
3. Library Board
4. Parks Commission
5. Complete Streets and Transportation Commission
6. Diversity, Equity and Inclusion (DEI) Commission
iv. In addition to all Youth Commission meetings, the primary member shall attend all meetings of the Board or Commission they are appointed to. If the primary member is not able to attend the meeting of the Board or Commission they are assigned, it shall be the responsibility of the alternate to attend the meeting. If the primary member misses three (3) meetings of the Board or Commission the Youth Commission shall appoint a new primary member, and if necessary, a new alternate. v. Liaisons shall provide a monthly report to the Youth Commission and be responsible for conveying the Youth Commission’s input to the Board or Commission.
vi. A majority of members shall constitute a quorum for the purpose of transacting business.
vii. Commission members shall serve without compensation, provided that, with advance budgetary approval of the Town Council, the actual and necessary expenses (if any) incurred by the members in the conduct of Town business shall be reimbursable pursuant to the current Council policy.
3. The Commission shall hold a regular meeting at least once each month between September and May. The Commission shall establish a regular time and location for its meetings and shall otherwise call and conduct its meetings in compliance with the provisions of the Ralph M. Brown Act (Government Code Sections 54950 and following.)
4. The Commission shall elect a Chair and Vice-Chair, both of whom shall serve at the pleasure of the Commission. Terms of office shall be for one (1) year and shall begin on the first meeting in September and end the following May.
5. Minutes of the actions taken during its meetings shall be kept and filed with the Town Clerk Administrator.
ITEM NO. 15.
3 of 3
Resolution 2025- May 20, 2025
ATTACHMENT 2
6. Meeting attendance requirements will conform with all current Town Resolutions and Policies.
7. The duties of the Commission shall include the following:
a. Foster greater involvement of youth in municipal government affairs. b. Study problems, activities, and concerns of youth, especially as they relate to municipal programs or projects of the Town of Los Gatos. c. Hold forums on problems, activities and concerns of youth, either alone or in conjunction with other governmental agencies and community organizations, as the Commission deems desirable.
d. Review municipal matters referred to the Commission by the Town Council or other Town boards, committees, or commissions and, as appropriate, make recommendations on those matters.
BE IT FURTHER RESOLVED that Resolution 2016-059 is hereby rescinded.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 20th day of May, 2025, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ITEM NO. 15.
PREPARED BY: Katy Nomura
Assistant Town Manager
Reviewed by: Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/20/2025
ITEM NO: 16
DATE: May 8, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive an Update on the Town’s Federal Funding and Grants, Considering Federal Actions Impacting the Town
RECOMMENDATION:
Receive an update on the Town’s federal funding and grants, considering federal actions impacting the Town.
BACKGROUND:
On January 27, 2025, the President’s Office of Management and Budget (OMB) released memo M-25-13, initiating a temporary pause on the disbursement of federal financial assistance, including grants and loans. This action aimed to review programs aligned with the administration's policies, particularly targeting initiatives related to diversity, equity, and inclusion (DEI), and environmental projects associated with the Green New Deal. The White House provided guidance that the pause was limited to programs, projects, and activities implicated by the President’s EOs, “such as ending DEI, the Green New Deal, and funding nongovernmental organizations that undermine the national interest.” On January 29, 2025, the OMB withdrew memo M-25-13 while the White House maintained that the intent of the executive orders related to the funding freeze remained unchanged, leading to ongoing confusion and legal challenges.
During the February 4, 2025, Town Council meeting, Mayor Matthew Hudes and Vice-Mayor Rob Moore requested that the Town Council discuss the potential impact of federal actions at a future meeting.
On March 18, 2025, the Town Council discussed the potential impact of federal actions on the Town’s federal funding sources and requested that an update be provided every other month,
ITEM NO. 16.
PAGE 2 OF 4
SUBJECT: Update on the Town’s Federal Funding and Grants DATE: March 18, 2025
skipping July, to allow them to discuss the impacts as well as potential actions. This report serves as that update.
The landscape of federal policy, federal funding, and corresponding legal challenges continues to change. All federal funding should be closely monitored.
DISCUSSION:
Attachment 1 outlines the Town’s current federal funding. In addition to this information, notable updates are included below.
Los Gatos Creek Trail Connector:
This project was recently completed, and staff will be presenting the final project close out to the Town Council in June. That project was funded through a series of grant programs including, One Bay Area Grant (OBAG), Transportation Fund for Clean Air (TFCA), Transportation Development Act (TDA), and VTA Measure B. Currently, there is $6,193,000 of federal funding in an open OBAG grant for this project. A reimbursement request of $790,922.28 was submitted in April. Staff continue to work with OBAG to ensure funds are reimbursed and expect the final reimbursement requests in August 2025.
Emergency Management Performance Grant (EMPG):
This grant is administered to the Town through the County. The County has informed staff that they are unable to process reimbursement of funds at this time and will continue to attempt to obtain EMPG funding. Staff will continue to monitor this situation and will not expend any further EMPG funding until reimbursement becomes more certain.
Open Space Vegetation Management (FEMA HMGP Grant):
Field implementation of this program started on March 17, 2025. Work at La Rinconada Park, Worcester Park, and Novitiate Park has been completed. Work is actively occurring on Heintz and Santa Rosa Open Space and is expected to continue through at least July. Work includes biological assessment ahead of the tree crews to support compliance with the various state and federal requirements for the project. On April 14, 2025, staff submitted the required quarterly reporting and a reimbursement request of $118,803 to the California Office of Emergency Services for work performed between January 1 through March 31. CalOES staff has confirmed the reimbursement request is being processed. For all vegetation management grants, staff is only expending up to the amount the Town has committed to in match funding and waiting for reimbursements to come through before expending further funding.
Roadside Vegetation Management (FEMA HMGP Grant):
Phase 1 work on this project is planned to start in May 2025 with a Request for Proposal for environmental consulting services. As approved by FEMA, Phase 1 includes environmental assessment, permitting, and securing rights of entry if needed for the work. Staff expect to
ITEM NO. 16.
PAGE 3 OF 4
SUBJECT: Update on the Town’s Federal Funding and Grants DATE: March 18, 2025
revisit the scope of work with the environmental consultant as field conditions have changed since the Vegetation Management Plan was originally prepared and adopted. Work on Phase 2, which will include contracting for tree management services, will begin after FEMA approves the Phase 1 work and obligates the funding for Phase 2. Phase 1 funding is $35,000, with all remaining funds included in Phase 2. As mentioned earlier, for all vegetation management grants, staff is only expending up to the amount the Town has committed to in match funding and waiting for reimbursements to come through before expending further funding.
Roadside USDA Grant:
This $750,000 grant was slated to expire on March 15, 2025. Staff submitted an extension request in fall 2024, but due to changing staffing, the extension was not issued. At this time, staff continues to work with the United States Forest Service to secure renewal of the funding.
Defunding of the Federal Institute of Museum and Library Services (IMLS):
Due to the impact of the Presidential Executive Order defunding the Federal Institute of Museum and Library Services (IMLS), the Library will be discontinuing the following electronic resources as of June 30, 2025. These services had been administered at either the State level and/or our local Bay Area consortium level using pass-through funding originating from the IMLS.
• Britannica Escolar
• Britannica School Edition
• Enki eBook platform
• Flipster Digital Magazines (23 e-magazine titles)
• Gale Environmental Studies (Elementary & Middle School) • Gale Interactive: Science (Elementary & Middle School) • National Geographic Kids Resources
• New York Times (Online)
• ProQuest eBook Central
• Teaching Books
CONCLUSION:
The landscape of federal funding and associated legal challenges continues to evolve. Staff will continue to monitor the situation.
FISCAL IMPACT:
The Town has been awarded nearly $10,000,000 in federal funding. Approximately $5.5 million of this funding has not yet been received and could potentially be subject to current and future changes in federal policy.
ITEM NO. 16.
PAGE 4 OF 4
SUBJECT: Update on the Town’s Federal Funding and Grants DATE: March 18, 2025
ENVIRONMENTAL ASSESSMENT:
This report is not a project defined under CEQA, and no further action is required.
Attachments:
1. Town Federal Funding Update May 2025
ITEM NO. 16.
NAME OF
PROGRAM
GRANTING
AGENCY
DESCRIPTION OF
GRANT
TOTAL
GRANT
AMOUNT
AMOUNT
EXPENDED TO
DATE
AMOUNT
EXPENDED
BUT NOT
REIMBURSED
AMOUNT
NOT YET
RECEIVED
OBAG 2 Federal Highway
Administration
Grant for construction of the
Los Gatos Creek Trail
Connector the Highway 9
Project. Awarded in 2023.
$6,193,000 $5,639,000 $1,344,182 $1,844,182
Emergency
Management
Performance
Grant (EMPG)
CalOES / FEMA Funding for the purpose of
sustaining and improving
comprehensive emergency
management programs.
Historically, this is a
recurring grant awarded
annually.
$15,300 $14,866 $14,866 $15,300
FEMA HMGP
Open Space
Management
CalOES / FEMA Vegetation Management in
Town owned Open Space.
Awarded in 2019.
Grant:
$1,502,121
Town Match:
$500,707
Grant: $284,138
Town Match:
$92,815.15
$222,085 $1,440,068
FEMA HMGP
Roadside
Vegetation
Management
CalOES / FEMA Roadside Vegetation
Management. Awarded in
2021.
Grant:
$1,467,388
Town Match:
$489,130
$0 $0 $1,467,388
USDA
Roadside
Vegetation
Management
US Forest Service Roadside Vegetation
Management. Awarded in
2022.
Grant: $750,000
Town Match:
$750,000
Grant: $0
Town Match:
$186,300
$0 $750,000
FEDERALLY FUNDED GRANTS AND ASSSISTANCE PROGRAMS
1 ATTACHMENT 1
ITEM NO. 16.
NAME OF
PROGRAM
GRANTING
AGENCY
DESCRIPTION OF
GRANT
TOTAL
GRANT
AMOUNT
AMOUNT
EXPENDED TO
DATE
AMOUNT
EXPENDED
BUT NOT
REIMBURSED
AMOUNT
NOT YET
RECEIVED
Library E-Rate Federal
Communications
Commission (FCC)
funds administered
by the California
Teleconnect Fund
through the
CalREN program
This program provides
subsidy to significantly
reduce the cost of the
Library’s Broadband
internet, including offsetting
costs of hardware
replacement, upkeep of
servers, and maintenance of
fiber connections.
Historically, this is a
recurring grant awarded
annually.
$8,500 $1,600 $0 $6,900
Library Services
Act Grant for
Ebooks
Federal Institute of
Museum of Library
Services funds
administered by the
California State
Library’s Library
Services and
Technology Act.
This grant provides funding
to acquire e-books for public
use. Awarded in 2024.
$2,900 $2900 $0 $0
2
ITEM NO. 16.
NAME OF
PROGRAM
GRANTING
AGENCY
DESCRIPTION OF
GRANT
TOTAL
GRANT
AMOUNT
AMOUNT
EXPENDED TO
DATE
AMOUNT
EXPENDED
BUT NOT
REIMBURSED
AMOUNT
NOT YET
RECEIVED
Library Services
Act Grants for
Zipbooks, Early
Learning, and
Sustainability
Federal Institute of
Museum of Library
Services funds
administered by the
California State
Library’s Library
Services and
Technology Act.
Various competitive grants
that the Library typically
applies for and receives to
bolster services for programs
and collections. Awarded in
2023.
$43,500 43,500 $0 $0
TOTAL $9,982,709 $7,453,392 $1,581,133 $5,523,838
3
ITEM NO. 16.
The Library will be discontinuing the following electronic resources as of June 30, 2025 due to the impact of the Presidential Executive Order defunding the Federal Institute of Museum and Library Services (IMLS). These services had been administered at either the State level and/or our local Bay Area consortium level using pass-through funding originating from the IMLS. Although there has been a recent injunction against the Executive Order, the State is not able to commit funding to these resources until funding is reinstated. · Britannica Escolar
· Britannica School Edition
· Enki ebook platform
· Flipster Digital Magazines (23 e-magazine titles)
· Gale Environmental Studies (Elementary & Middle School) · Gale Interactive: Science (Elementary & Middle School) · National Geographic Kids Resources
· New York Times (Online)
· ProQuest eBook Central
· Teaching Books
ITEM NO. 16.
PREPARED BY: Gitta Ungvari
Finance Director
Reviewed by: Town Manager, Town Attorney, and Assistant Town Manager 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 05/20/2025
ITEM NO: 17
DATE: May 13, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Conduct a Public Hearing on the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year 2025-26 and on the Proposed Capital Improvement Program for FY 2025-26 – FY 2029-30
RECOMMENDATION:
Staff recommends the Town Council conduct a public hearing on the Town of Los Gatos Proposed Operating and Capital Budget for Fiscal Year (FY) 2025-26 and on the Proposed Capital Improvement Program for FY 2025-26 – FY 2029-30 and futher recommends the Town Council
a. Affirm the Finance Commission’s recommendation and direct the use of all Measure G proceeds for operational expenditures;
b. Provide Direction on the Proposed Operating Budget and accept the list of $1.07 million in expenditure reductions for implementation in the 2025-26 proposed budget; c. Provide Direction on the Proposed Capital Budget and to establish a Tiered CIP program and to accept the Tier 1 projects in the 2025-26 Capital Improvement Program; and d. Approve the FY 2025-26 List of Potential Donations Consistent with the Town’s Donation Policy.
FISCAL IMPACT:
Net Deficit Spending of about $700,000 balanced by the use of Unassigned Fund Balance.
Under State law, the Town Council is required to enact a balanced budget. The recommendation would result in a reduction of the Proposed Operating Budget of $1.07 million and would use all Measure G sales tax proceeds for operational use.
ITEM NO. 17.
PAGE 2 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
BACKGROUND:
Each year, between January and June, the Town undertakes an extensive process to prepare the fiscal year budget, effective July 1. This comprehensive budget development effort includes evaluating and determining several key components
• Budget Guidelines and Timeline: Establish initial guidance and expectations for departments along with a structured calendar of budget development and approval activities.
• Revenue Projections: Forecast anticipated revenues utilizing historical data trends, economic indicators, and consultations with external revenue consultants. • Personnel Costs: Project salary, wage adjustments, benefits, and pension obligations for current and proposed staffing levels.
• Setting Strategic Priorities: Identify and reaffirm strategic priorities, providing foundational guidance to shape budget formulation and resource allocation. • Operating and Capital Expenditures: Assess and prioritize operational necessities and capital improvement projects, balancing immediate needs and long-term investments. • Budget Balancing and Deficit Reduction: Develop strategies to align expenditures with available resources, actively addressing any structural budget deficits through targeted reductions or revenue enhancements.
• Public Input: Engage the community through transparent outreach efforts to gather and incorporate public feedback into the budget development process. • Budget Approval: Finalize and present the recommended budget for Town Council consideration and adoption.
In February 2025, the Town Council set high-level strategic priorities for the period 2025-2027.
This included prioritizing emergency preparedness, particularly with regard to wildfire risks, ensuring prudent financial management, and preserving the community's unique small-town charm. Also in February 2025, the Finance Commission reviewed the Town’s initial Five-Year Financial Forecast, discussing projected financial conditions and emerging fiscal challenges.
Subsequently, in April 2025, the Finance Commission provided input into the development of a Request for Proposal (RFP) aimed at conducting an external Five-Year Forecast and a comprehensive Fiscal Impact Analysis. These efforts are designed to enhance the Town’s strategic approach to understanding current financial conditions, addressing ongoing structural budget deficits, and projecting the revenue and expenditure needs from future development.
While the Town staff prepare a forecast annually for the budget, the purpose of an external forecast and analysis is to enhance confidence in information which will guide the Town over the next few years of challenging financial conditions.
In accordance with Los Gatos Town Code Section 2.50.225(a)(2), the Finance Commission received the Proposed Budgets on April 21, 2025, at least 20 business days before May 20,
ITEM NO. 17.
PAGE 3 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
2025, the first meeting at which the Town Council will consider the Proposed Budgets. On April 21, 2025, the Proposed FY 2025-26 Operating and Capital Budgets were posted to the Town’s website, and the links (listed below) were provided to the Finance Commission and to the Town Council.
Proposed Operating Budget:
https://www.losgatosca.gov/2987/Proposed-FY-2025-26-Operating-Budget CIP Budget:
https://www.losgatosca.gov/2988/Proposed-FY-2025-26-Capital-Budget On April 22, 2025, the Town Council held a budget study session to provide direction to the Finance Commission for their review of the Proposed Budget, including budget-balancing approaches (Attachments 3 and 4 – staff reports for budget and Capital Improvement Program). One of the budget-balancing strategies proposed was to utilize the entire Measure G sales tax proceeds for public safety operations rather than a split between 50% operations and 50% being reserved for future capital, an allowable use under the general sales tax measure.
Additionally, another approach recommended is the consideration of tiered reductions prepared by the Town’s executive team. Further, the Town Council wanted the Finance Commission to review the appropriateness of the five-year forecast.
On April 28, 2025, May 5, 2025, and May 12, 2025, the Finance Commission met and discussed the five-year forecast, budget revenues, expenditures and capital projects. Staff worked with the Finance Commission to refine assumptions and estimates in the five-year forecast and to advise on the budget. At their May 12, 2025 meeting, the Finance Commission made three motions for the Town Council’s consideration.
While this staff report provides responses to the Finance Commission’s recommendations, Attachment 1 is where staff speak to Finance Commission recommendations.
Today’s meeting is intended to seek direction from the Town Council to consider the recommendations of the Finance Commission, including direction on Measure G usage; provide direction on the proposed operating budget including balancing the budget; provide direction on the proposed capital budget; and to approve the FY 2025-26 List of Potential Donations Consistent with the Town’s Donation Policy.
DISCUSSION:
The FY 2025-26 Proposed Budget, published on April 21, 2025, included $58.1 million in General Fund revenue and $61.4 million in General Fund expenditures, resulting in a projected operational deficit of approximately $3.7 million. The focus is on General Fund instead of all
ITEM NO. 17.
PAGE 4 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
funds as the General Fund and respective fund balances represent the majority of the resources used for the Town.
The Town Council provided input and direction during its discussion on April 22, 2025 with emphasis on the Finance Commission reviewing and advising on the Five-Year projection and giving guidance to the extent to which the Town should use reserves to balance potential reductions in the budget.
Attachment 1 provides a breakdown of the 2025-26 operating budget recommendations from the Finance Commission, staff’s response to each, and the net effect in the proposed budget for the changes accepted by staff.
In response to Finance Commission recommendations, staff re-evaluated assumptions and the revenue and expenditures sources. As a result of this review, the following adjustments are accepted to the proposed budget:
• Increased Property Tax revenue by $200,000
• Increased Interest Income revenue by $180,000
• Increased Planning Permit revenue by $15,000
• Increased Business License revenue by $50,000
• Reduced anticipated CalPERS benefits expenditures by $255,000 In addition to the accepted Finance Commission items above, staff identified the following changes due to new information since the initial budget development:
• Increased Licenses and Permit revenue by $668,000 due to increases in encroachment fees assessed by the solid waste joint powers authority. • Increased Sales Tax Revenue by $163,000 based on updated sales tax estimates for the most recent quarter from the Town’s Sales Tax consultant. • Increased License and Permit revenue by $360,000 based on the updated Town’s Fee Schedule approved by Council on May 6, 2025.
All of the above changes have been incorporated into the updated Five-Year Forecast (Attachment 2, page 3) and FY 2025-26 Proposed Budget, increasing revenue by $1,636,000 and reducing expenses by $255,000. It should be noted that the forecast and proposed budget do not include all the recommendations of the Finance Commission where staff did not accept or agree with the recommendation. We address each area recommended by the Finance Commission in Attachment 1.
With these changes, the anticipated deficit projected for 2025-26 Operating Budget is being reduced to $1.8 million.
ITEM NO. 17.
PAGE 5 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
Impact of Changes in Projected Deficit to Fund Balances Typically, revenues minus expenditures and any respective transfers in and out of the General Fund result in a net increase to the bottom line of the fund, called the fund balance. Think of the fund balance like a savings account where the money carries over year to year like your typical bank account. The money that goes into this savings account, revenue, increases what we have to spend, and the bills and activity we spend money on, expenditures, goes out from the savings account. We also transfer money in from other sources, like gas tax which reimburses the Town for its roadway activity, or to support other funds that pay for activity that need additional funds.
When we put all this together, we then get a bottom line surplus, or as is the case for 2025-26, a deficit. A surplus grows our savings account balance, while a deficit reduces the balance. As a result, we see a reduction in the General Fund balance, or in other words our savings account.
The following table shows this in practice with our projected 2025-26 year.
The table below shows how the changes in the bottom line fund balance occur and where the numbers change. In this table, we see the five fund categories – nonspendable, restricted, committee, assigned, and unassigned. The blue highlighted number is the rough deficit that requires the use of the fund balance. The two purple numbers are our stabilization and catastrophic reserves, which are our minimal emergency funds, and the grey line which shows the beginning and ending balances projected for the 2025-26 year.
ITEM NO. 17.
PAGE 6 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
In a nutshell, looking at the bottom left of this table, when we remove the purple emergency funds balances, we will end with $12.9 million available for other uses and potentially available in the General Fund for future deficits. Clearly, as our Five-Year projection estimates deficits for each of the next four years, it will not be long before the Town may be forced into tough decisions impacting core services and the scope of services the Town provides.
For 2025-26, the Town executive team developed four tiers of reductions and revenue options for consideration to further reduce the deficit and impact on the fund balance.
Considering Budget Balance Options to Reduce the Operational Deficit With the Finance Commission’s recommendations and additional review by staff, the projected 2025-26 operational deficit was reduced from $3.7 million to $1.8 million. However, the Estimated Fund Balance Estimated
July 1, 2025 Sources June 30, 2026
Balance (Uses) Balance
Unreserved Fund Balances
Undesignated Reserves
Available to be Appropriated $ - $59,715,946 $61,093,047 $ 1,377,101 $ - Nonspedable
Rehab Loan (Non - Spendable) 159,000 159,000
Restricted Fund Balances
Pension Trust 2,878,659 - - 390,000 3,268,659
Committed to:
Budget Stabilization Reserve 7,959,645 - - - 7,959,645
Catastrophic Reserves 7,959,645 - - - 7,959,645
Pension/OPEB Reserve 1,000,000 - - - 1,000,000
Assigned to: -
Open Space Reserve 410,000 - - - 410,000
Sustainability 140,553 - - - 140,553
Capital/Special Projects 1,328,437 - - - 1,328,437
Authorized Carryforwards 85,861 - - - 85,861
Compensated Absences* 1,555,478 - - - 1,555,478
Market Fluctuations 1,712,246 - - - 1,712,246
Unassigned Fund Balance 4,000,000 - - (1,767,101) 2,232,899 $29,189,524 $59,715,946 $61,093,047 $ - $ 27,812,423
Minus $ 15,919,290
$ 11,893,133
The balances are estimates and will be finalized upon closing the FY 2024-25 and FY 2025-26.
General Fund
Estimated Fund Balance Activity FY 2025-26 (Updated 5/14/2025) Revenues &
Transfers In
Expenditures
and
Transfers
Use of / Addition to GF Reserves: Out
Total Use of and Addition To Reserves
ITEM NO. 17.
PAGE 7 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
Finance Commission recommends that the Town Council reduce the deficit to zero or as near as reasonable.
The Town Manager recommends the Town Council consider a balanced approach to reducing the deficit and implementing reductions through the tiered reductions presented here. The rationale for this balance approach is as follows
Avoid Over Cutting – It is beneficial to not overly cut in the case revenue and expenditure estimates are too conservative in which the Town cuts only to finish the year with a surplus;
Additional Analysis on Financial Outlook – More work is necessary to refine the financial outlook, impact of development, and gain broad acceptance of the significant of future deficits over the next few years. This will include outside experts to assist the Town in performing such analysis; and
Opportunity for Planned Cost Reduction Measures – Reserve balances give the Town some breathing room to continue efforts to streamline internally, seek contracts with lower total costs, and to implement other cost reduction measures on a timeline that allow for thoughtful planning.
To effectively address this challenge, Town staff provided expenditure reduction and revenue enhancement options to the Council on April 22, 2025, that can be found in Attachment 3.
Expenditure Reduction Options
After hearing the input from the Town Council and the Finance Commission, staff reviewed the deficit reduction options and recommend implementing the following reductions, totaling approximately $1.07 million in savings:
• All Tier 1 reductions, with one change to reallocate $5,000 to fund the bulk purchase of giveaway items. Staff will seek and consider commissioner input on the bulk items to purchase. This will save an estimated $295,000 in the proposed budget.
o In this tier, the team was intentional in preserving staff hours and only reduced where part-time positions were either unfilled or currently filled by retired annuitants providing extra help. The reductions may mean that staff may not have funding available to address unusual or unexpected circumstances.
• Tier 2 Reductions ($355,000 estimated savings). Tier 2 contemplates deeper reductions, yet without significantly impacting core service or reducing staff hours. Some strategic priority related funding begins to be impacted in this tier. o Reduce Hotel Program funding to $20,000 (approx. $8,700 savings) o Reduce part-time emergency coordinator hours (approx. $18,000 savings) o Reduce outside legal services (approx. $110,000)
ITEM NO. 17.
PAGE 8 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
o Remove decorative tree wrap lighting downtown (approx. $68,000) o Remove doggie bags in parks (approx. $10,000)
o Reduce Library offerings including streaming media, e-resource databases and e-magazines. Due to the timing of contracts, these reductions have already been implemented (approx. $50,000 savings).
o Reduce Library printed quarterly programs/brochures and the number of media and book additions and replacements in the Library’s collection (approx. $34,000 savings).
o Reduce memberships and other operational reductions (approx. $56,000). o In addition, while it is a savings that requires renegotiation and cannot be included in the budget at this time, staff plan to revisit the amount the Town contributes toward utility payments on behalf of third parties for inclusion in future budgets.
• Tier 3 Reductions ($160,000 estimated savings):
o Reorganize the Community Police Complaints process (approx. $60,000 savings).
o Reduce block pruning and tree management by 50% (approx. $100,000 savings). Staff will consider options, if any, for the community to supplement the reduced tree trimming.
Staff recommend the Town Council accept the list of $1.07 million in expenditure reductions for implementation in the 2025-26 proposed budget. The anticipated 2025-26 operational deficit will be reduced from $1.8 million to approximately $0.7 million, some of which will likely be improved throughout the year with additional reductions, efficiencies, and revenue options.
The Council may choose to use reserves to cover the remaining $0.7 million or increase expenditure reductions. The Finance Commission recommended avoiding the use of reserves unless necessary.
Revenue Options
As discussed previously, several revenue adjustments were included in the proposed budget after hearing input from the Finance Commission. In addition, staff plan to pursue revenue enhancement options including revenue audits, reducing subsidies, and exploring new revenues as opportunities present themselves.
During initial discussions of the budget, the executive team provided a list of revenue options for consideration with the tiered expenditure reductions. The following table shows the options included in the Council’s April 22, 2025 agenda package.
ITEM NO. 17.
PAGE 9 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
While several revenue options may be included in the proposed budget, these options are not all currently incorporated into the proposed budget due to their uncertainty.
If there are any options that Council does not want explored, please inform staff during this discussion; otherwise, staff will return for Council input at the appropriate time. Of note, if a sales tax or parcel tax measure is pursued, work would need to begin in FY 2025-26 in order to be placed on the November 2026 ballot. Staff hopes to have the Fiscal Condition Analysis and Five-Year Projection Study to inform whether a revenue measure is needed and will return to Council for direction when appropriate.
Other Measures – Efficiencies and Innovation
Reducing expenses and increasing revenues are not the only options necessary to address structure imbalances within the Town. The Town needs to look to gain efficiency, leverage
ITEM NO. 17.
PAGE 10 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
technology, and invest in efforts that return more through economic development and innovation.
The Finance Commission recommended staff review the Town fleet to right-size vehicles and equipment as well as to look towards improving workers’ compensation experience.
Reductions in this area translate into reductions in internal service charges which are charged back to departments in their operating budgets.
The Town will be looking at the Town’s general liability and workers compensation programs to reduce ongoing expenditures and liability.
Considering Tiered Capital Improvement Program
Town staff develop a five-year Capital Improvement Program (CIP) each year for review and adoption by the Town Council. The CIP document defines projects that were closed in the prior fiscal year, proposes new projects as needed, and allocates funding across various projects and programs.
The proposed five-year CIP reflects $1.8 million in ongoing annual Gas Tax dedicated sources to help fund the proposed FY 2025-26 $6.7 million capital improvements. The balance of CIP funding of $4.9 million is funded by one–time appropriations from the General Fund Appropriated Reserve (GFAR), Utility Undergrounding Funds, Traffic Mitigation Funds, Grant Funds, and Storm Drain Funds.
In considering funding priorities for the CIP, staff follows the guidance provided by various Town documents, including: Council Strategic Priorities, General Plan, Bicycle and Pedestrian Master Plan, Pavement Management Program, Stormwater Master Plan, Facilities Condition Assessments, the ADA Transition Plan, and legislative mandates. Project ideas and needs are also identified from field observations by Town staff, input from residents, and ideas from Town Commissions.
With this proposed CIP budget, significant changes to funding and project priorities are proposed. These changes are made in recognition of the large carryforward that has existed in prior fiscal years and the limited staffing resources available to deliver capital projects.
Regarding funding, the Measure G transfer to the General Fund Appropriated Reserve (GFAR) was eliminated in this project budget. All Measure G funds were retained in the General Fund to support General Fund operations.
Staff recommend the Town Council affirm the Finance Commission’s recommendation and direct the use of all Measure G proceeds for operational expenditures.
ITEM NO. 17.
PAGE 11 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
Staff closed and consolidated projects where possible. Details of these projects are provided in the Introduction section of the CIP document. The remaining projects were then categorized as Tier 1 or Tier 2 (Attachment 4, Page 11). Tier 1 projects are those that are fully funded, include funding with a grant deadline, are ready for construction, or are legally required. These projects will be a staff priority for delivery in 2025-26. Tier 2 projects are other projects that have had CIP funding in prior years, but are either not fully funded, cannot be supported with current staffing, or both. By taking this action, this CIP presents a more realistic picture of project priorities and of projected capital expenses in the next fiscal year.
If staff resources allow a Tier 2 project to move forward, then Town Council action will be sought to release the required funding to continue the project. Other capital needs that have been identified but not funded are included as an appendix to the CIP document. These are called Tier 3 projects (Attachment 4, Page 13), and no funding or staff have been allocated to these at this time.
The report provided to the April 22, 2025 Council Budget Study Session with additional information can be found in Attachment 4 of this Staff Report.
On May 14, 2025, the Planning Commission reviewed the proposed CIP, found it consistent with the General Plan, and recommended its adoption by the Town Council.
Staff recommends the Town Council approve the direction to establish a Tiered CIP program and to accept the Tier 1 projects in the 2025-26 Capital Improvement Program.
Council direction regarding the Proposed Operating and/or Capital Budgets provided at the May 20, 2025 budget hearing will be incorporated into an implementing resolution to be presented for final Council approval on June 3, 2025.
Donation Opportunities - FY 2025-26 List of Town Needs
As part of the budget development process, the List of Town Needs is updated annually per Town Council Donation Policy (Attachment 5) to reflect goods, services, and other contributions that would help enhance Town services, programs, and events (Attachment 6).
Staff recommends the Town Council approve the list of Town Needs for donations.
CONCLUSION AND NEXT STEPS:
At its May 20, 2025 meeting, the Council will have an opportunity to listen to public testimony, ask questions, consider the Finance Commission’s recommendations, deliberate, and direct changes to the Proposed Operating and/or Capital Improvement Program Budgets. Any changes to the Proposed Operating and/or Capital Budgets directed by Council will be included
ITEM NO. 17.
PAGE 12 OF 12
SUBJECT: FY 2025-26 Proposed Operating and Capital Budgets DATE: May 16, 2025
for Council consideration in the resolution formally adopting the Budgets to be considered by Council on June 3, 2025.
During and after the Budget adoption, staff continues to monitor revenues and expenditures closely and will report to the Town Council actual revenues and expenditures later in the year as the data become available. Any modifications needed will be brought back to the Council as Budget Adjustments.
Public comments provided received Before 11 a.m. on May 16, 2025 are included in Attachment 7.
COORDINATION:
The preparation of the budget documents involved the participation of all Town Departments.
The Finance Commission deliberated and provided its recommendations to the Council as discussed in this report.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Finance Commission Identified Areas for Review in the Five-Year Forecast
2. Forecast History including the Updated Forecast
3. Budget Study Session – Deficit Reduction Staff Report
4. Budget Study Session – Capital Improvement Program Staff Report
5. Town of Los Gatos Donation Policy
6. Town of Los Gatos Donation Opportunities: FY 2025-26
7. Public Comment Received Before 11 a.m. on May 16, 2025
ITEM NO. 17.
1 ATTACHMENT 1
Finance Commission Identified Areas for Review in Five-Year Forecast and Recommendations from the Finance Commission with Staff Responses
Item Finance Commission
Recommendation
Staff Comments Change from Proposed
Budget
Revenue
Property Tax
Adjustment
Increased property tax projected for
2025-26 by $200,000.
Staff accept the recommendation. The Property Tax increases by $200,000.
Sales Tax
Adjustment
N/A Increase sales & use tax projected for
2025-26 by $162,759 as proposed by the
Town’s Sales Tax consultant. Change
occurred after publishing of the proposed
budget.
Sales & Use Tax increases by
$162,759.
Planning and
Building Permit
Fees
Review planning and building fees to
understand the drop-off of
approximately $600,000.
Planning Department recommends a
$15,000 addition.
Planning Permit Revenue
increases by $15,000.
Engineering
Permit
N/A The Engineering Department is
recommending a $358,891 increase to
this revenue source due to approval of
new fees by the Town Council on
5/6/2025.
Engineering permit fee
increases by $358,891.
Business License
Tax
Increase business license tax by
$200,000 to reflect historical trends.
Staff recommend using HdL, the Town’s
current business license and property tax
consultant, to conduct a business license
audit. Staff estimate recovery could
reach $50,000.
Business license revenue
increases by $50,000 for FY
2025-26 Proposed Budget.
Intergovernmental Review Intergovernmental-State drop
and increase where the 2025-26
amount does not appear aligned with
the trend.
Staff identified that SLESF
Intergovernmental Revenue was
overstated by $200,000 from the
beginning of FY 2026-27.
There are no changes to the
FY 2025-26 Proposed Budget.
ITEM NO. 17.
2 ATTACHMENT 1
Investment Income Remove the GASB 31 adjustment of
($500,000) for mark to market as it is
a balance sheet item.
Increase Interest Income by $700,000
Staff are consolidating the line items.
Consolidating accomplishes the intent to
lower future interest expense projections,
as this value was intended to demonstrate
volatility.
Staff reviewed the investment estimates
and increased the General Fund interest
income by 181,268.
Lines consolidated into
Investment income. Total
General Fund Interest
increased by $181,268.
License and
Permits – Waste
Hauler
Encroachment
Permit
N/A Staff increased license and permits by
$668,000 to reflect encroachment fees
assessed by solid waste joint powers
authority. Change occurred after
publishing the proposed budget.
License and Permits increase
by $668,000.
Expenditures
CalPERS Benefits Projection for 2025-26 appears to be
$1 million higher than shown in
consultant Foster & Foster's June 30,
2023 report.
Staff reviewed the projections with
Foster & Foster. The unfunded liability
amount which represents 63.5% of the
projection was verified. Additionally, the
normal cost percentages applied to
pensionable pay were verified. Projected
payroll was the variable which
determined the pension expense
projection. Based on more review, staff
can take a more aggressive position
which may result in up to a reduction of
$255,000 in pension expense.
Reduces CalPERS benefits
expenditure by $255,000.
Internal Service
Charges
Internal Service Charges appear $1
million higher than reasonable.
Assess and determine what it is, why
we have it, and can it be reduced.
General Fund Internal Service Charges
are increasing significantly in the
General Liability and Workers’
Compensation Internal Services Funds to
ensure that General Fund charges cover
cost. The insurance premium is the
primary driver of the increases in the
There is no anticipated saving
in FY 2025-26.
Review of ISF methodology
may result in a change in the
2025-26 mid-year budget.
ITEM NO. 17.
3 ATTACHMENT 1
General Liability Insurance Fund
expenses. The primary drivers in the
Workers’ Comp Internal Service Fund
expenses are the claim experience and
the insurance premium. While no change
appears warranted, staff will be
conducting a review of the ISF in 2025-
26 to verify its allocation methodology.
Staff are evaluating the possibility of
switching to a different insurance
provider to reduce the premium cost.
Potential savings will be utilized in FY
2026-27.
Reserves
Pension Trust
Reserve
Utilize some of the pension trust to
cover shortfall in order to not utilize
unassigned fund balance.
Staff disagree with utilizing the pension
reserve in lieu of the unassigned fund
balance.
There is no change to the FY
2025-26 Proposed Budget.
Other
General Fund
Policy
Update criteria defining contribution
to the Town’s catastrophic and
uncertainty reserves to reflect total
expenditures in the General Fund and
not just the Operating Expenditures
Line item.
Staff agree with this correction. No change to financials.
ITEM NO. 17.
4 ATTACHMENT 1
Finance Commission Recommendations on Proposed Operating Budget On April 28, 2025, the Finance Commission reviewed the budget and provided three recommendations approved by unanimous vote.
We highlight the three recommendations and staff’s perspective on each area.
Motion 1:
The Finance Commission make the following recommendations to the Town Council:
Avoid drawing on reserves unless absolutely necessary; balance the budget to zero or as close to zero as feasible; and implement a targeted hiring freeze until a comprehensive five-year financial forecast is completed. The Commission further recommends engaging an external financial consultant to assist in identifying opportunities to increase revenues and reduce expenditures.
o Staff Response: We understand the desire to structurally balance the budget in one year. However, it is important to ensure the Town does not cut activity only to end up with surpluses. Further, the Town must do more to analyze its financial condition and outlook while also taking opportunities to create efficiencies. The reserve balances allow the Town some time to make meaningful movement in these areas. Explore ways to reduce Workers’ Compensation and Liability Insurance costs, implementing safety and wellness programs aimed at reducing workplace injuries, and developing a comprehensive labor model to define service level targets and staffing needs. To enhance revenue, the Commission recommends evaluating options to increase sales tax revenue, including contributions from underrepresented sectors such as auto dealerships; reviewing Planning and Building Fees to ensure all potential adjustments are considered; reviewing the Business License Tax, particularly for businesses currently capped at $3,000; and reassessing interest income projections to determine the feasibility of recovering up to an additional $700,000. o Staff Response: The Town will be exploring opportunities to reduce liability and workers compensation costs. In terms of a comprehensive labor model, the Town’s new Enterprise Resource Planning system may assist in this effort, but more analysis is necessary before proceeding. The spreadsheet above includes the Town’s response to the specific revenue and expenditure items recommended by the Commission. We thank them for their input, but we were not always able to take their recommendations.
On the expenditure side, the Commission recommends reviewing CalPERS and Internal Service Fund (ISF) costs, with formal recommendations to follow as appropriate. The Commission also recommends that staff evaluate the Town’s fleet of over 80 vehicles and construction equipment for potential liquidation and cost savings, and consider leasing where feasible to reduce ongoing maintenance costs.
ITEM NO. 17.
5 ATTACHMENT 1
o Staff Response: The Town will look at the vehicle fleet and policy to determine opportunities to reduce or right size.
Additionally, the fleet, as well as other internal functions, so by extension, we will be addressing the Internal Service Fund costs recommended by the Commission.
Additionally, the Commission recommends approving the use of 100% of Measure G funds for operational expenses, in place of the prior 50/50 split between operations and capital projects. o Staff Response: Staff agree and are recommending to the Town Council to authorize the use of 100% of Measure G funds for operational expenses.
Finally, the Commission recommends that the Town Council evaluate and select from among the tiered budget reduction options to help meet the objective of eliminating or minimizing the use of reserves. o Staff Response: Staff partly agrees and is recommending the implementation of just over $1 million in tier reductions.
Motion 2:
The Finance Commission does not recommend approval of the Five-Year forecast and to wait until a new forecast is performed by an outside consultant.
o Staff Response: Staff understand the Commissions reluctance to approve the forecast. Approval is not necessary as the item is a tool. Staff anticipate moving forward with a consultant who will prepare a financial condition analysis which includes a Five-Year forecast.
Motion 3:
In considering the capital improvement program, the Commission recommends the Town Council Require a time phased capital program which shows what staff believe will be spent in each year versus what is authorized,
For project 9901 Street Repair and Resurfacing, the Town should tie street repair and resurfacing to a target Pavement Condition Index which is to be established by the Town Council, and For the Highway 17 bridge design project (818-0803 the Council should consider stopping continued progress on that project and schedule further conversation and determine how to best prioritize capital projects and funding in the future.
o Staff Response: Staff are not opposed to some of the recommendations made. However, except for the last item related to the bridge design project, actions do not need to be taken at this point. Staff intends to continue
ITEM NO. 17.
6 ATTACHMENT 1
the conversation with the Finance Commission related to the CIP program, budgeting and how to ensure accountability for the projects and budgets. The following is additional information from staff related to the bridge design project.
Highway 17 Overcrossing Project
Per the table below, the total current project budget is $4,457,880 of which the Town funded $1,468,524. The total anticipated costs to complete design are $3,856,135. Based on this, the estimated remaining project balance after design is complete would be $601,745.
Staff has consulted with the Valley Transportation Authority (VTA) regarding the fate of Measure B funds in this project. At present the Town has received reimbursement of approximately 50% of the $2,754,900 Measure B funding, or $1,377,450. If the Town were to stop work and cancel the project VTA staff has confirmed that the Town would be expected to refund the reimbursed funds to VTA.
The latest concept estimate has a total project cost of $29,000,000, inclusive of design. Staff is preparing an application for the federal SS4A grant (assuming Town Council does not direct staff to cease all work on the project), which would require a 20% match of $5,800,000. Because all design funding sources currently in play ($4,457,880) would qualify as local match for a federal construction grant, the total remaining local match would be $1,342,120. That amount could come from any local, County, or State funding source, including Measure B. Since VTA has already allocated Measure B funds to the project we expect they would be supportive of additional construction funding.
ITEM NO. 17.
1 ATTACHMENT 2
TABLE OF CONTENTS
Contents
FY 2025-26 FORECAST- PUBLISHED 5-15-2025 (Updated 5-14-2025) .......................................................................... 3 FY 2025-26 FORECAST ALTERNATIVE PRESENTATION- PUBLISHED 5-15-2025 (Updated 5-14-2025)............................... 4 FY 2025-26 BUDGET/FORECAST COMPARISON AS IT PUBLISHED ON 4/22/2024 COMPARED TO AS IT PUBLISHED ON 4/21/2025........................................................................................................................................................... 5 FY 2025-26 FORECAST- PUBLISHED 4-21-2025 (HISTORICAL DETAIL ADDED ON 4/25/2025 TO PUBLICATION)................. 8 REVENUE BASELINE AND PROJECTION FACTORS (PROPOSED FY 2025-25 BUDGET - PUBLISHED 4/21/2025) ............. 10 EXPENDITURE BASELINE AND PROJECTION FACTORS (PROPOSED FY 2025-26 BUDGET - PUBLISHED 4/21/2025)....... 12 FY 2024-25 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/7/2025.................................................................... 14 REVENUE BASELINE AND PROJECTION FACTORS (FY 2024-25 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/7/2025)...................................................................................................................................................... 15 EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2024-25 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/7/2025)...................................................................................................................................................... 17 FY 2024-25 FORECAST- PUBLISHED 4-22-2024 FY 2024-25 PROPOSED BUDGET......................................................... 19 REVENUE BASELINE AND PROJECTION FACTORS (FY 2024-25 PROPOSED BUDGET – PUBLISHED 4/22/2024)............. 21 EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2024-25 PROPOSED BUDGET – PUBLISHED 4/22/2024) ...... 23 FY 2023-24 MID-YEAR-REPORT AND FORECAST – PUBLISHED 2/10/2024.................................................................. 28 REVENUE BASELINE AND PROJECTION FACTORS (FY 2023-24 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/10/2024) .................................................................................................................................................... 29 EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2023-24 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/10/2024) .................................................................................................................................................... 31 FY 2023-24 PROPOSED BUDGET FORECAST- PUBLISHED 4/17/2023 ......................................................................... 32 REVENUE BASELINE AND PROJECTION FACTORS (FY 2023-24 PROPOSED BUDGET - PUBLISHED 4/17/2023) ............. 33 EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2023-24 PROPOSED BUDGET - PUBLISHED 4/17/2023)....... 35 FY 2022-23 MID-YEAR REPORT AND FORECAST- PUBLISHED 2/10/2023.................................................................... 37 REVENUE BASELINE AND PROJECTION FACTORS (FY 2022-23 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/10/2023) .................................................................................................................................................... 38 EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2022-23 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/10/2023) .................................................................................................................................................... 40 FY 2022-23 PROPOSED BUDGET FORECAST- PUBLISHED 4/18/2022 ......................................................................... 43 REVENUE BASELINE AND PROJECTION FACTORS (PROPOSED FY 2022-23 BUDGET – PUBLISHED 4/17/2022)............. 44 EXPENDITURE BASELINE AND PROJECTION FACTORS (PROPOSED FY 2022-23 BUDGET – PUBLISHED 4/17/2022) ...... 46 FY 2021-22 MID-YEAR REPORT AND FORECAST- PUBLISHED 2/11/2022.................................................................... 48 REVENUE BASELINE AND PROJECTION FACTORS (FY 2021-22 MID-YEAR AND FORECAST - PUBLISHED 2/11/2022) .... 49
ITEM NO. 17.
2 ATTACHMENT 2
EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2021-22 MID YEAR AND FORECAST - PUBLISHED 2/11/2022) .................................................................................................................................................................... 51 FY 2021-22 PROPOSED BUDGET - PUBLISHED 4/19/2021........................................................................................ 53 REVENUE BASELINE AND PROJECTION FACTORS (FY 2021-22 PROPOSED BUDGET - PUBLISHED 4/19/2021) ............. 54 EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2021-22 PROPOSED BUDGET - PUBLISHED 4/19/2021)....... 56 FY 2020-21 MID-YEAR REPORT AND FORECAST - PUBLISHED 2/12/2021................................................................... 58 REVENUE BASELINE AND PROJECTION FACTORS (FY 2020-21 MID-YEAR AND FORECAST - PUBLISHED 2/12/2021) .... 59 EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2020-21 MID-YEAR AND FORECAST - PUBLISHED 2/12/2021) .................................................................................................................................................................... 61 FY 2020-21 PROPOSED BUDGET - PUBLISHED 4/19/2021........................................................................................ 63 REVENUE BASELINE AND PROJECTION FACTORS (FY 2020-21 PROPOSED BUDGET - PUBLISHED 4/19/2021) ............. 64 EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2020-21 PROPOSED BUDGET - PUBLISHED 4/19/2021)....... 66
ITEM NO. 17.
3 ATTACHMENT 2
FY 2025-26 FORECAST- PUBLISHED 5-15-2025 (Updated 5-14-2025) General Fund 5-Year Forecast
Updated 5-14-2025
(in $ million)
Revenue Category
FY 2022/23
Actuals
FY 2023-24
Actuals
FY 2024-25
Adjusted
Budget
FY 2024-25
Estimates
FY 2025-26
Proposed
Budget
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
FY 2030-31
Forecast
Property Tax $ 18.2 $ 19.3 $ 20.2 $ 20.0 $ 21.4 $ 22.2 $ 23.1 $ 24.0 $ 24.9 $ 25.9 VLF Backfill Property Tax 4.6 4.9 5.0 5.1 5.4 5.7 5.9 6.2 6.5 6.9 Sales & Use Tax 7.5 6.8 6.6 6.4 6.7 6.8 7.0 7.1 7.2 7.3 Measure G District Sales Tax 1.3 1.3 1.3 1.3 1.2 1.3 1.3 1.4 1.4 1.5 Franchise Fees 3.1 2.5 1.0 1.0 1.0 1.1 1.1 1.1 1.2 1.2
Transient Occupancy Tax 2.2 2.4 2.3 2.3 2.4 2.4 2.4 2.4 2.4 2.4 Business License Tax 2.4 1.5 2.4 2.8 2.4 2.5 2.6 2.7 2.7 2.8 Licenses & Permits 3.3 4.0 5.8 6.1 6.3 6.3 6.4 6.5 6.6 6.7 Intergovernmental 1.6 1.2 1.1 1.2 0.8 0.8 0.9 0.9 0.9 0.9 Town Services 4.6 5.9 4.7 5.0 5.7 5.0 5.1 5.2 5.3 5.4
Fines & Forfeitures 0.4 0.5 0.3 0.4 0.3 0.3 0.3 0.3 0.3 0.3 Interest 0.6 2.6 1.8 1.4 1.6 1.1 1.0 0.8 0.7 1.0
Other Sources 8.1 5.0 4.1 4.7 3.8 3.7 3.9 3.9 2.7 2.6
Fund Transfers In 0.5 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 $ 58.4 $ 58.5 $ 57.2 $ 58.3 $ 59.6 $ 59.8 $ 61.6 $ 63.1 $ 63.4 $ 65.5 Use of Capital/Special Projects $ 2.4 $ 1.6 $ 3.7 $ 2.1 $ - $ - $ - $ - $ - $ - Use of Measure G Sales Tax - - - 0.6 0.1 - - - - - -
Use of Pension/OPEB Reserve 0.3 0.3 - 0.3 - - - - - -
Use of Council Priorites - Economic - 1.5 - - - - - - - - Use of Unassigned Fund Balance - - - - - -
$ 61.1 $ 61.9 $ 61.5 $ 60.8 $ 59.6 $ 59.8 $ 61.6 $ 63.1 $ 63.4 $ 65.5 Expenditure Category FY 2022/23
Actuals
FY 2023-24
Actuals
FY 2024-25
Adjusted
Budget
FY 2024-25
Estimates
FY 2025-26
Proposed
Budget
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
FY 2030-31
Forecast
Salary $ 20.4 $ 21.5 $ 25.2 $ 22.6 $ 25.4 $ 26.8 $ 27.4 $ 28.0 $ 28.5 $ 29.2 Overtime 1.4 1.3 0.6 1.5 0.7 0.7 0.7 0.7 0.7 0.7
CalPERS Benefits 7.1 7.4 8.8 8.3 9.7 10.4 11.1 12.0 12.1 12.4 All Other Benefits 3.8 4.3 5.6 4.9 6.3 6.3 6.7 7.0 7.4 7.0
4.6% Salary and Benefits Savings - - (1.8) - (1.9) (2.0) (2.1) (2.2) (2.2) (2.3) OPEB Pay as You Go 1.5 1.6 1.7 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Operating Expenditures 11.7 9.8 10.2 9.8 10.2 9.9 10.1 10.4 10.6 11.0 Grants & Awards 0.6 0.7 0.7 0.7 0.4 0.3 0.3 0.4 0.4 0.4 Utilities 0.6 0.7 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.8
Internal Service Charges 2.6 3.2 4.4 4.1 5.0 5.3 5.7 5.9 6.1 6.4 Debt Service 2.0 2.1 2.1 2.1 2.1 2.1 2.1 2.1 0.8 0.8
Additional Discretionary Payment - $ 51.8 $ 52.9 $ 58.2 $ 56.7 60.6 $ 62.8 $ 65.1 $ 67.5 $ 67.7 $ 69.1 Pension 0.7 0.7 0.4 0.7 0.4 0.4 0.4 0.4 0.4 0.4
$ 52.5 $ 53.6 $ 58.6 $ 57.4 $ 61.0 $ 63.2 $ 65.5 $ 67.9 $ 68.1 $ 69.5 Capital Transfers Out to GFAR $ 2.4 $ 1.6 $ 1.1 $ 1.1 $ - $ - $ - $ - $ - $ - Transfer to General Liability - 0.4 - 0.1 - - - - - -
GASB 65 0.6 - - - - - - - -
Fixed Assets/ Equipment 0.1 0.5 0.9 - - - - - -
1/2 of Measure G Proceeds to Capital 0.6 0.7 0.6 0.6 - - - - - - Allocate to ERAF Risk Reserve 0.7 0.7 - - - - - - - -
Allocate to Pension Trust 0.7 0.7 0.7 0.7 0.4 0.4 0.4 0.4 0.4 0.4 $ 56.2 $ 57.7 $ 61.0 $ 60.8 61.4 $ 63.6 $ 65.9 $ 68.3 $ 68.5 $ 69.9 $ 4.9 $ 4.2 $ 0.5 $ - (1.8) $ (3.8) $ (4.3) $ (5.2) $ (5.1) $ (4.4) * Due to rounding of individual categories total revenues, expenditures, and reserve allocations may include $0.1 million.
NET REVENUES , TRANSFERS IN, USE
OF RESERVES LESS EXPENDITURES,
TRANSFERS IN, AND RESERVE
ALLOCATIONS
TOTAL REVENUES, TRANSFERS, AND
USE OF RESERVES*
TOTAL EXPENDITURES & RESERVE
TOTAL OPERATING REVENUES &
TOTAL OPERATING EXPENDITURES
TOTAL OPERATING &
DISCRETIONARY EXPENDITURES
ITEM NO. 17.
4 ATTACHMENT 2
FY 2025-26 FORECAST ALTERNATIVE PRESENTATION- PUBLISHED 5-15-2025 (Updated 5-14- 2025)
A B C D E F G H I J K
FY 2025-26 5-Year Forecast FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 (in Thousands) Updated 5-14-2025 Actual Actual Actual Estimated Budgeted Forecasted Forecasted Forecasted Forecasted Forecasted 1 Revenues 2 Property Taxes 3 >Property Tax $ 14,528 $ 15,888 $ 16,787 $ 17,376 $ 18,211 $ 18,961 $ 19,831 $ 20,744 $ 21,700 $ 22,703 4 >ERAF 2,372 2,299 2,534 2,617 3,220 3,220 3,220 3,220 3,220 3,220 5 >VLF Backfill Property Tax 4,229 4,556 4,906 5,109 5,377 5,688 5,946 6,237 6,542 6,863 6 Total Property Tax $ 21,129 $ 22,743 $ 24,227 $ 25,102 $ 26,608 $ 27,869 $ 28,997 $ 30,201 $ 31,462 $ 32,786 7 8 Sales Tax 9 >Sales Tax * $ 7,178 $ 7,507 $ 6,795 $ 6,419 $ 6,639 $ 6,767 $ 6,913 $ 7,050 $ 7,170 $ 7,275 10 >Measure G Sales Tax* 1,306 1,299 1,277 1,243 1,299 1,337 1,375 1,414 1,450 1,484 11 Total Sales Tax $ 8,484 $ 8,806 $ 8,072 $ 7,662 $ 7,938 $ 8,104 $ 8,288 $ 8,464 $ 8,620 $ 8,759 12 13 Transient Occupancy Tax $ 1,895 $ 2,228 $ 2,368 $ 2,332 $ 2,402 $ 2,402 $ 2,402 $ 2,402 $ 2,402 $ 2,402 14 15 Other Taxes $ 15 $ 7 $ 5 $ 7 $ 7 $ 7 $ 7 $ 8 $ 8 $ 8 16 17 Licenses and Permits 18 >Planning & Building Permit Fees $ 2,078 $ 2,171 $ 2,211 $ 2,936 $ 2,255 $ 2,323 $ 2,392 $ 2,464 $ 2,538 $ 2,614 19 >Business Licenses 1,482 2,362 1,519 2,839 2,434 2,507 2,582 2,660 2,739 2,822 20 >Waste Hauler Encroachment Permit ** 0 0 766 2,298 2,966 2,966 2,966 2,966 2,966 2,966 21 >Engineering Permits 702 464 199 330 577 494 509 524 540 556 22 >Waste Hauler Admin and Tree Trimming Fees 444 291 508 142 142 146 150 155 160 164 23 >Other 390 342 310 389 383 394 406 418 430 443 24 Total Licenses and Permits $ 5,096 $ 5,630 $ 5,513 $ 8,934 $ 8,757 $ 8,830 $ 9,005 $ 9,187 $ 9,373 $ 9,565 25 26 Intergovernmental 27 >State $ 1,257 $ 1,522 $ 1,073 $ 1,069 $ 772 $ 833 $ 866 $ 877 $ 887 $ 895 28 >Federal 6 17 21 20 13 8 8 8 8 8 29 >County 0 0 63 114 54 0 0 0 0 0 30 >Other 0 14 0 0 0 0 0 0 0 0 31 Total Intergovernmental $ 1,263 $ 1,553 $ 1,157 $ 1,203 $ 839 $ 841 $ 874 $ 885 $ 895 $ 903 32 33 Charges for Services 34 >Special Monte Sereno Police Agreement $ 967 $ 1,011 $ 1,071 $ 1,136 $ 1,425 $ 1,468 $ 1,512 $ 1,557 $ 1,604 $ 1,652 35 >Other PD Services 213 312 364 193 238 192 193 193 195 195 36 >Planning Fees 928 785 838 778 779 750 773 796 820 845 37 >Engineering Fees 1,207 977 1,166 793 1,018 1,035 1,063 1,092 1,122 1,152 38 >Parks 7 39 62 82 92 70 72 74 76 78 39 >General Plan 644 398 692 60 200 206 212 219 225 232 40 >Below Market Housing Program -Pass Through 170 167 285 204 155 159 165 171 177 183 41 >Community Development - Pass Through 580 467 575 573 573 533 533 533 533 533 42 >Parks and Public Works - Pass Through 457 322 455 870 785 183 183 183 183 183 43 >Other 288 169 405 293 302 235 235 237 237 239 44 Total Charges for Services $ 5,461 $ 4,647 $ 5,913 $ 4,982 $ 5,567 $ 4,831 $ 4,941 $ 5,055 $ 5,172 $ 5,292 45 46 Fines and Forfeitures $ 319 $ 417 $ 481 $ 385 $ 315 $ 315 $ 311 $ 311 $ 320 $ 330 47 48 Franchise Fees 49 >Garbage franchise fee $ 1,881 $ 2,051 $ 1,493 $ - $ - $ - $ - $ - $ - $ - 50 >Other franchise fees 942 1,023 1,054 1,013 1,044 1,075 1,107 1,141 1,175 1,210 51 Total Franchise Fees $ 2,823 $ 3,074 $ 2,547 $ 1,013 $ 1,044 $ 1,075 $ 1,107 $ 1,141 $ 1,175 $ 1,210 52 53 Below Market Housing Program -Loan $ 1,200 $ - $ - $ - $ - $ - $ - $ - $ - $ - 54 55 Investment Income $ (1,405) $ 606 $ 2,699 $ 1,427 $ 1,568 $ 1,077 $ 1,008 $ 765 $ 653 $ 1,014 56 57 Use of Property $ 32 $ 38 $ 35 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 $ 46 58 59 Other $ 311 $ 860 $ 516 $ 525 $ 233 $ 141 $ 143 $ 146 $ 148 $ 151 60 61 Revenues without COPs 46,623 50,609 53,533 53,618 55,324 55,538 57,129 58,611 60,274 62,466 62 67 COP Lease (Eliminated in ACFR) $ 1,900 $ 1,894 $ 1,895 $ 1,902 $ 1,902 $ 1,908 $ 1,916 $ 1,923 $ 668 $ 668 71 72 Total Revenues $ 48,523 $ 52,503 $ 55,428 $ 55,520 $ 57,226 $ 57,446 $ 59,045 $ 60,534 $ 60,942 $ 63,134 73 74 Operating Expenditures 75 Salaries and Wages $ 19,981 $ 21,799 $ 22,864 $ 24,147 $ 26,091 $ 27,459 $ 28,123 $ 28,737 $ 29,174 $ 29,918 76 Retirement Benefits 6,532 7,091 7,431 8,272 9,652 10,431 11,116 11,994 12,135 12,439 77 Other Employee Benefits 3,679 3,830 4,275 4,879 6,270 6,288 6,668 6,972 7,399 6,972 78 4.6% Vacancy Factor (1,944) (2,044) (2,124) (2,206) (2,252) (2,281) 79 Total Wages and Benefits $ 30,192 $ 32,720 $ 34,570 $ 37,298 $ 40,069 $ 42,134 $ 43,783 $ 45,497 $ 46,456 $ 47,048 80 81 Operating Expenditures $ 12,985 $ 11,715 $ 14,012 $ 16,705 $ 17,360 $ 17,254 $ 17,810 $ 18,507 $ 18,985 $ 19,704 82 83 Capital Outlay $ - $ 300 $ 708 $ 886 $ - $ - $ - $ - $ - $ - 84 85 Debt Service 86 >Principal $ 156 $ 156 $ 225 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 $ 156 87 >Interest and Fees 0 0 4 0 0 0 0 0 0 0 88 89 Expenditures without COPs $ 43,333 $ 44,891 $ 49,519 $ 55,045 $ 57,585 $ 59,544 $ 61,749 $ 64,160 $ 65,597 $ 66,908 93 94 COP Lease Transfer (Eliminated in ACFR) 1,900 1,894 1,895 1,902 1,902 1,908 1,916 1,923 668 668 97 99 Total Expenditures $ 45,233 $ 46,785 $ 51,414 $ 56,947 $ 59,487 $ 61,452 $ 63,665 $ 66,083 $ 66,265 $ 67,576 100 101 Excess (Deficiency) of Revenues 3,291 5,719 4,014 (1,428) (2,261) (4,006) (4,620) (5,549) (5,323) (4,442) 102 103 Other Financing Sources (Uses) 104 >Subscriptions $ - $ - $ 707 $ - $ - $ - $ - $ - $ - $ - 105 >Sale of capital assets 2 2 0 822 1 1 1 1 1 1 106 >Transfers In 4,047 4,153 2,333 1,849 2,169 2,251 2,287 2,322 2,356 2,382 107 >Transfers (out) (4,358) (7,243) (5,520) (3,118) (1,607) (1,689) (1,725) (1,760) (1,794) (1,820) 108 Total Other Financing Sources (Uses) (309) (3,088) (2,480) (447) 563 563 563 563 563 563 109 110
111 Net Change In Fund Balances 2,982 2,631 1,534 (1,875) (1,698) (3,443) (4,057) (4,986) (4,760) (3,879) 112 113 Beginning Fund Balance 23,915 26,897 29,528 31,062 29,188 27,490 24,047 19,990 15,004 10,244 114 115 Ending Fund Balance $ 26,897 $ 29,528 $ 31,062 $ 29,188 $ 27,490 $ 24,047 $ 19,990 $ 15,004 $ 10,244 $ 6,365
ITEM NO. 17.
5 ATTACHMENT 2
FY 2025-26 BUDGET/FORECAST COMPARISON AS IT PUBLISHED ON 4/22/2024 COMPARED TO AS IT PUBLISHED ON 4/21/2025
This document includes forecasts for FY 2025-26, starting with the FY 2020-21 Proposed Budget forecast when FY 2025-26 was first forecasted. The forecast is updated periodically as the base, economy, and other factors evolve. The table on page 5 shows the variance between the FY 2025-26 Forecast (published on 4/22/2024) and the FY 2025-26 Proposed Budget (published on 4/21/2025). The assumptions for the FY 2025-26 Forecast (published on 4/22/2024) and the FY 2025-26 Proposed (published on 4/21/2025) can be located on page 19 and page 8 of this document, as well as in the Adopted FY 2024-25 and Proposed FY 2025-26 budgets.
Below is the list of significant variances in Revenue and Expenditure estimates:
1) Row 8 – Column E - Licenses and Permits: $2.4 million variance.
The $2.4 million Waste hauler Encroachment fee was re-categorized from Town Services in Row 10 - Column C Forecast to Licenses and Permits located at Row 8 – Column D Proposed Budget. 2) Row 10 – Column E – Town Services: ($1.1) million variance.
Considering the recategorization above, the Town Services increased by $1.3 million. The increase includes $647,000 development-related pass-through activities, $255,000 increase for the Monte Sereno Police Services Contract, $318,000 increased engineering services revenue, $46,000 increases for School Resource Officer support from the School Districts.
3) Row 13 – Column E – Other Sources: $0.7 million variance.
Since all Measure G Revenue is programmed to provide public safety services, the pass-through tracking revenue is characterized as other revenue which is offset by the equivalent expenditures in Police salaries and benefits.
In the Row 13 - Column C Forecast, only half of the Measure G revenue ($0.6 million) was characterized as Other sources, and the entire proceeds are characterized as Other sources in the Column D Forecast. 4) Row 18 – Column E – Salaries: $1.6 million variance.
Column C Forecast assumes 2% salary increases for TEA, AFSCME, Confidential, Management, and Temporary employees. The actual increase, as estimated in the Row 18 - Column D Forecast for TEA, ASCME, Confidential, Management, and Temporary employees, was 5% in FY 2024-25, 3% in FY 2025-26. AFSCME actual increases are 4% in FY 2024-25 and FY 2025-26. In addition, there were equity adjustments for certain job classes that were not included in the Row 18 - Column C Forecast.
5) Row 20 – Column E – CalPERS Benefits: $0.8 million variance.
CalPERS rates are based on actual payroll, so increased salaries will cause increased CalPERS contributions. In addition, while the Miscellaneous Group rates remained relatively flat, growing from 29.6% (Column C Forecast) to 30.02% (Column D Forecast), the Classic Safety Group required contribution changed from 98.74%
ITEM NO. 17.
6 ATTACHMENT 2
(Column C Forecast) to 109.09% (Column D Forecast), and the Classic Safety Management Group estimated contribution changed 101.74% (Column C Forecast) to 112.09% (Column D Forecast). 6) Row 24 – Column E – Operating Expenditures: $2.03 million variance.
Operating expenditures experience inflationary factors as well. The prior year assumed a 3% increase; however, certain services and product prices increased by more than 3%. The variance is added up from many different items:
This item shows half of the Measure G Expenditure under Row 31 – Column C in the Column C Forecast, while it is included in the Operating Expenditures in the Row 24 - Column D Forecast.
Measure G Fund is a subfund in General Fund, and all proceeds are expended in a given year and part of the operating expenditures.
The following increases listed as an example in this category that contribute to the difference between the two forecasts: $647,000 development related pass through activities, $215,000 in legal services, $190,000 special studies, $150,000 temporary employee services, 127,000 in engineering services; $70,000 miscellaneous services and repairs,$54,000 in street closures,$53,000 street sweeping services,$50,000 in tree trimming services, and 30,000 in auto parts, and $27,000 software licenses.
ITEM NO. 17.
7 ATTACHMENT 2
A B C D E
Account Revenue Category
FY 2025-26
Forecast
Published
4/22/2024
FY 2025-26
Proposed
Budget
Published
4/21/2025
Variance
1 4100 Property Tax $ 21.3 $ 21.2 $ (0.10)
2 4110 VLF Backfill Property Tax 5.3 5.4 0.10
3 4200 Sales & Use Tax 6.7 6.6 (0.16)
4 4200 Measure G District Sales Tax 1.3 1.2 (0.04)
5 4250 Franchise Fees 1.1 1.0 (0.10)
6 4251 Transient Occupancy Tax 2.4 2.4 -
7 4400 Business License Tax 2.5 2.4 (0.10)
8 4400 Licenses & Permits 3.0 5.4 2.40
9 4500 Intergovernmental 0.9 0.8 (0.10)
10 4600 Town Services 6.7 5.6 (1.10)
11 4700 Fines & Forfeitures 0.3 0.3 -
12 4800 Interest 1.4 1.4 -
13 4850 Other Sources 3.1 3.8 0.70
14 4900 Fund Transfers In 0.6 0.6 -
15 $ 56.6 $ 58.1 $ 1.50
16 Use of Capital/Special Projects Reserve $ 1.1 $ -
Use of Measure G Sales Tax - Operating - -
Use of Pension/OPEB Reserve - -
Use of OPEB Trust - -
Use of Property Surplus Reserve - -
Use of Measure G Reserve - -
ARPA Replacement Revenue - -
Use of Council Priorites - Economic Recovery - -
17 $ 57.7 $ 58.1
Account Expenditure Category FY 2025/26
Forecast
FY 2025-26
Proposed
Budget
Variance
18 5110 Salary $ 23.8 $ 25.4 $ 1.63
19 Overtime 0.7 0.7 0.01
20 5120 CalPERS Benefits 9.1 9.9 0.81
21 5200 All Other Benefits 6.1 6.3 0.13
22 4.6% Salary and Benefits Savings (1.8) (1.9) (0.12)
23 6211 OPEB Pay as You Go 1.9 2.1 0.24
24 6000 Operating Expenditures 8.3 10.3 2.03
25 7200 Grants & Awards 0.2 0.4 0.19
26 7400 Utilities 0.7 0.7 (0.01)
27 8060 Internal Service Charges 5.2 5.0 (0.19)
28 8900 Debt Service 2.1 2.1 -
$ 56.2 $ 61.0 $ 4.72
GASB 45 Retiree Medical Actuarial - -
29 Additional Discretionary Payment - Pension 0.4 0.4
$ 56.6 $ 61.4
30 Capital Transfers Out to GFAR $ 1.1 $ -
31 1/2 of Measure G Proceeds to Capital 0.6 -
32 Allocate to ERAF Risk Reserve 0.8 -
33 Allocate to Pension Trust 0.4 0.4
34 $ 59.5 61.8
35 NET REVENUES , TRANSFERS IN, USE OF RESERVES LESS $ (1.8) (3.7)
TOTAL OPERATING REVENUES & TRANSFERS
TOTAL REVENUES, TRANSFERS, AND USE OF RESERVES*
TOTAL OPERATING EXPENDITURES
TOTAL OPERATING & DISCRETIONARY EXPENDITURES
AMOUNTS AVAILABLE FOR RESERVE ALLOCATIONS
TOTAL EXPENDITURES & RESERVE ALLOCATIONS*
ITEM NO. 17.
8 ATTACHMENT 2
FY 2025-26 FORECAST- PUBLISHED 4-21-2025 (HISTORICAL DETAIL ADDED ON 4/25/2025 TO
PUBLICATION)
ITEM NO. 17.
9 ATTACHMENT 2
Account Revenue Category
FY 2015/16
Actuals
FY 2016/17
Actuals
FY 2017/18
Actuals
FY 2018/19
Actuals
FY 2019/20
Actuals
FY 2020/21
Actuals
FY 2021/22
Actuals
4100 Property Tax $ 10.8 $ 11.5 $ 12.5 $ 13.6 $ 14.5 $ 15.8 $ 16.9 4110 VLF Backfill Property Tax 3.0 3.2 3.4 3.7 3.9 4.1 4.2 4200 Sales & Use Tax 7.5 9.2 7.6 8.0 6.5 6.8 7.2
4200 Measure G District Sales Tax - - - 0.2 1.0 1.1 1.3 4250 Franchise Fees 2.3 2.4 2.5 2.5 2.5 2.5 2.8
4251 Transient Occupancy Tax 1.9 2.3 2.6 2.7 1.9 1.0 1.9 4400 Business License Tax 1.5 1.7 1.7 1.5 1.4 1.4 1.5
4400 Licenses & Permits 3.5 3.0 3.0 3.1 2.7 3.1 4.8
4500 Intergovernmental 1.0 0.9 1.0 0.9 1.0 1.6 1.3
4600 Town Services 4.0 3.3 4.4 4.4 4.4 4.6 5.3
4700 Fines & Forfeitures 0.9 0.9 0.7 0.5 0.3 0.1 0.3
4800 Interest 0.6 0.2 0.2 1.4 2.2 0.1 (1.4)
4850 Other Sources 2.3 4.3 3.2 4.6 2.7 3.7 7.0
4900 Fund Transfers In 2.4 0.3 0.8 1.6 0.6 0.7 0.6
Use of Capital/Special Project Reserve - $ 41.7 $ 43.2 $ 43.6 $ 48.7 $ 45.6 $ 46.6 $ 53.7 Capital - 1.4 3.2 2.8 8.0 3.4 0.6
Use of Pension/OPEB Reserve - - - - - 4.5 0.3
Use of Property Surplus Reserve - - - - - - 1.2
Use of Almond Grove Reserve - 5.9 - - - - -
Use of Measure G Reserve - - - - - - 1.1
$ 41.7 $ 50.5 $ 46.8 $ 51.5 $ 53.6 $ 54.5 $ 56.9
Account Expenditure Category FY 2015/16
Actuals
FY 2016/17
Actuals
FY 2017/18
Actuals
FY 2018/19
Actuals
FY 2019/20
Actuals
FY 2020/21
Actuals
2021/22
Actuals
5110 Salary 14.5 14.8 16.0 17.9 19.3 20.2 20.0
5120 CalPERS Benefits 3.6 3.9 4.3 5.3 6.1 6.4 6.5
5200 All Other Benefits 3.2 3.2 3.3 3.6 3.6 3.7 3.7
6211 OPEB Pay as You Go 0.9 1.0 1.1 1.2 1.2 1.3 1.4
6000 Operating Expenditures 4.7 4.8 5.0 5.6 5.1 5.7 10.4 7200 Grants & Awards 0.7 0.2 0.2 0.3 0.3 0.3 1.8
7400 Utilities 0.4 0.6 0.5 0.5 0.5 0.6 0.6
8060 Internal Service Charges 3.5 3.6 3.9 2.5 2.2 2.3 2.6 8900 Debt Service 1.9 1.9 1.9 1.9 1.9 2.0 2.1
$ 33.6 $ 34.0 $ 36.2 $ 38.8 $ 40.2 $ 42.4 $ 49.0
GASB 45 Retiree Medical Actuarial 1.5 2.6 1.6 1.1 1.1 0.6 0.1 Additional Discretionary Payment - Pension - - - - - 5.6 0.7 $ 35.1 $ 36.6 $ 37.8 $ 39.9 $ 41.3 $ 48.6 $ 49.8
Capital Transfers Out to GFAR 0.5 7.3 2.6 2.3 7.0 3.4 1.2 Operating Tranfer Out 0.1 - 0.6 0.5 1.1 - -
1/2 of Measure G Proceeds to Capital - - - - - - 0.7
Fixed Assets/ Equipment Pension/OPEB Payment to Pension Trust 0.4 - - - 0.1 - - Fund - - 1.2 3.6 0.4 - -
$ 5.6 $ 6.6 $ 4.6 $ 5.2 $ 3.7 $ 2.5 $ 5.9
Allocate to Almond Grove Reserve Allocate to Budget 2.5 - - - - - - Stabilization/Catastrophic - - - - - 0.1 1.1
Allocate to Compensated Absences - - - - - 0.1 (0.2)
Allocate to Market Fluctuations Reserve 0.3 0.3 - - 1.2 - (0.4) Allocate to CalPERS/Pension Reserve - 1.8 - - - 0.3 0.3 Allocate to Measure G Reserve - - - - 1.2 - -
Allocate to VM & Stores Surplus Reserve - - - 1.0 - - - Allocate to Authorized Carryforwards 0.1 - - - - - 0.03 Sales Tax Prior - Year Adjusments - 0.4 - - - - -
Allocate to Property Surplus Reserve - - - 1.9 - 1.2 -
$ 39.0 $ 46.4 $ 42.2 $ 49.2 $ 52.2 $ 53.7 $ 52.2
$ 2.7 $ 4.1 $ 4.6 $ 2.3 $ 1.4 $ 0.8 $ 4.7
TOTAL OPERATING & DISCRETIONARY EXPENDITURES
AMOUNTS AVAILABLE FOR RESERVE ALLOCATIONS
TOTAL EXPENDITURES & RESERVE ALLOCATIONS
NET REVENUES RESERVE TRANSFERS LESS EXPENDITURES &
RESERVE ALLOCATIONS FOR FINAL ALLOCATION AFTER YEAR
END CLOSE
* Due to rounding of individual categories Total Expenditures and Reserve Allocations may include $0.1 million.
General Fund (111) Historical presentaion does not include Pension Trusts activities.
TOTAL OPERATING EXPENDITURES
TOTAL OPERATING REVENUES & TRANSFERS*
TOTAL REVENUES, TRANSFERS, AND USE OF RESERVES
Town of Los Gatos General Fund Historical Year-End Results (in $ million)
ITEM NO. 17.
10 ATTACHMENT 2
REVENUE BASELINE AND PROJECTION FACTORS (PROPOSED FY 2025-25 BUDGET - PUBLISHED 4/21/2025) Type of
Revenue Base
Line Estimate
FY 2025-26
Budget
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
FY 2030-31
Forecast
Property Tax
SCC Assessor
Office
February 2025
Report and
HdL Coren
and Cone
April 2025
Forecast
5.29%
Net Taxable
Value Change
5.42%
Net Taxable
Value Change
4.89%
Net Taxable
Value Change
4.89%
Net Taxable
Value Change
4.89%
Net Taxable
Value Change
4.89%
Net Taxable
Value Change
VLF Backfill
HdL Coren
and Cone
April 2025
Forecast
5.25%
Net Taxable
Value Change
5.41%
Net Taxable
Value Change
4.90%
Net Taxable
Value Change
4.90%
Net Taxable
Value Change
4.89%
Net Taxable
Value Change
4.89%
Net Taxable
Value Change
Other
Property Tax
SCC Assessor
Office
February 2025
Report
3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
ERAF
SCC Assessor
Office March
2025
Notification
$3,220,000 $3,220,000 $3,220,000 $3,220,000 $3,220,000 $3,220,000 Sales Tax
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
Sales Tax -
Measure G
MuniServices
January 2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
MuniServices
January
2025
Most Likely
Estimates
Franchise Fee
Current
baseline set
by FY 2024-25
Year-End
Estimates
Current
baseline set by
FY 2024-25
Year-End
Estimates
3% 3% 3% 3% 3%
ITEM NO. 17.
11 ATTACHMENT 2
Type of Revenue
Base Line
Estimates
FY 2025-26
Budget
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
FY 2030-31
Forecast
Transient
Occupancy Tax
Current baseline
set by FY 2024-
25 Year-End
Estimates
3% 3% 0% 0% 0% 0%
Business License
Tax
Current baseline
set by FY 2024-
25 Year-End
Estimates
2% 2% 2% 2% 2% 2%
License &
Permits
Current baseline
set by FY 2024-
25 Year-End
Estimates
3% 3% 3% 3% 3% 3%
Town Services
Current baseline
set by FY 2024-
25 Year-End
Estimates
3% 3% 0% 3% 3% 3%
Fine &
Forfeitures
Current baseline
set by FY 2024-
25 Year-End
Estimates
1% Varies Varies Varies Varies Varies
Interest
Varies, based on
Portfolio
Weighted
Portfolio Yield
3.64%
Weighted
Portfolio Yield
3.56%
Weighted
Portfolio Yield
3.45%
Weighted
Portfolio Yield
3.36%
Weighted
Portfolio Yield
3.30%
Weighted
Portfolio Yield
3.30%
Other Sources
Current baseline
set by FY 2024-
25 Year-End
Estimates
Varies Varies Varies Varies Varies Varies
ITEM NO. 17.
12 ATTACHMENT 2
EXPENDITURE BASELINE AND PROJECTION FACTORS (PROPOSED FY 2025-26 BUDGET - PUBLISHED 4/21/2025) Beginning in FY 2020-21, the Town is budgeting salaries at the actual salary plus a one-step increase. 68% of the workforce is already at top step or one step below top step. In the Five-Year Forecast, positions are forecasted at the actual rate of pay including salaries and benefits as of March 1, 2025 and rate is increasing in the actual anniversary date. The FY 2025- 26 Budget and the FY 2026-27 – FY 30-31 Forecast includes 4.6% vacancy savings.
Type of
Expenditure
FY 2025-26
Budget
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
FY 2030-31
Forecast
Salaries (TEA,
Conf, Temp)*
3% 3% 2% 2% 2% 2%
Salaries (POA)* 5% 4% 2% 2% 2% 2%
Salaries
(AFSCME)*
4% 4% 2% 2% 2% 2%
Salaries
(Management)*
3% 3% 2% 2% 2% 2%
Benefit -
Medical**
7% 7% 7% 7% 7% 7%
Vacancy Savings 4.6% 4.6% 4.6% 4.6% 4.6% 4.6%
Operating
Expenditures***
Varies 3% 3% 3% 3% 3%
Grants & Awards 0% 0% 0% 0% 0% 0%
Utilities*** Varies 3% 3% 3% 3% 3%
Internal Service
Charges***
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Based on
operating
cost and
scheduled
replacement
Debt Service Debt Service Schedules
*Salary increases are based on actual step increases and approved Memoranda of Understanding with the bargaining units **Benefit increase estimates are provided by CalPERS/Public Employees’ Medical and Hospital Care Act (PEMHCA). ***Based on historical trends.
ITEM NO. 17.
13 ATTACHMENT 2
The Town’s required employer contribution rate estimates were developed using data provided by each plan’s most recent CalPERS actuarial valuation. The employer contribution rates reflect percentages of covered payroll. Forecasted rates for FY 2055-26 and subsequent years are based on the most recent CalPERS actuarial valuation Reports as adjusted by the impact related to the FY 2022-23 CalPERS 5.8% investment return and forecasted payroll.
Type of
Expenditure
FY 2025-26
Budget
FY 2026-27
Forecast
FY 2027-28
Forecast
FY 2028-29
Forecast
FY 2029-30
Forecast
FY 2030-31
Forecast
Safety
POA
109.09% 109.92% 112.95% 121.16% 121.75% 124.52%
Safety
Management
POA
112.09% 112.92% 115.95% 124.16% 124.75% 127.52%
Safety
POA - PEPRA
15.84% 14.96% 20.99% 21.74% 22.04% 25.76%
Miscellaneous
TEA/Confidential/
Management
30.02% 30.52% 30.82% 31.78% 31.92% 32.21%
Miscellaneous
TEA/Confidential/
Management
PEPRA
Separate PEPRA
rate for
Miscellaneous has
not been
established yet by
CalPERS.
30.62% 29.65% 31.01% 32.28% 33.81% 34.49%
*Safety Classic Rate reflects 3% decrease in employer's contribution rate to reflect 3% contribution as negotiated with the Town's POA during the collective bargaining process effective FY 2019-20.
ITEM NO. 17.
14 ATTACHMENT 2
FY 2024-25 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/7/2025
ITEM NO. 17.
15 ATTACHMENT 2
REVENUE BASELINE AND PROJECTION FACTORS (FY 2024-25 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/7/2025)
ITEM NO. 17.
16 ATTACHMENT 2 Page 593
ITEM NO. 17.
17 ATTACHMENT 2
EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2024-25 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/7/2025)
Beginning in FY 2020-21, the Town started budgeting salaries at the actual salary plus a one-step increase. In the FiveYear Forecast, positions are forecasted at the actual rate of pay including salaries and benefits as of December 31, 2024.
Beginning FY 2023-24 the total salaries and benefits budget includes 4.6% vacancy factor.
ITEM NO. 17.
18 ATTACHMENT 2
The Town’s required employer contribution rate estimates were developed using data provided by each plan’s most recent CalPERS actuarial valuation. The employer contribution rates reflect percentages of covered payroll. Rates shown for FY 2024-25 are actual rates as prescribed by CalPERS. Forecasted rates for FY 2025-26 and subsequent years are based on the most recent CalPERS actuarial valuation Reports as adjusted by the impact related to the FY 2022-23 CalPERS 6.1% investment return and forecasted payroll.
Beginning in FY 2021-22, the estimates of employer contributions were credited with an anticipated reductions associated with the approximate $4.8 million additional discretionary payment (ADP) toward the 2016 unfunded amortization base paid off in October 2019 and the total of approximately $5.8 million in ADPs toward unfunded 2013 and 2015 amortization bases that were paid off in FY 2020-21.
ITEM NO. 17.
19 ATTACHMENT 2
FY 2024-25 FORECAST- PUBLISHED 4-22-2024 FY 2024-25 PROPOSED BUDGET General Fund 5-Year Forecast
(in $ million)
Revenue Category
FY 2022/23
Actuals
FY 2023/24
Adjusted
Budget
FY 2023/24
Estimates
FY 2024/25
Budget
FY 2025/26
Forecast
FY 2026/27
Forecast
FY 2027/28
Forecast
FY 2028/29
Forecast
FY 2029/30
Forecast
Property Tax $ 18.2 $ 19.0 $ 19.0 $ 20.2 $ 21.3 $ 22.5 $ 23.7 $ 25.0 $ 26.5 VLF Backfill Property Tax 4.6 4.9 4.9 5.0 5.3 5.6 5.9 6.3 6.7 Sales & Use Tax 7.5 7.0 6.7 6.6 6.7 6.9 6.9 7.0 7.1
Measure G District Sales Tax 1.3 1.2 1.2 1.3 1.3 1.3 1.4 1.4 1.4 Franchise Fees 3.1 3.3 3.3 1.0 1.1 1.1 1.1 1.2 1.2
Transient Occupancy Tax 2.2 2.3 2.3 2.3 2.4 2.4 2.4 2.4 2.4 Business License Tax 2.4 2.4 2.4 2.4 2.5 2.6 2.6 2.7 2.8 Licenses & Permits 3.3 3.3 3.3 3.0 3.0 3.1 3.2 3.3 3.4
Intergovernmental 1.6 1.3 1.3 1.4 0.9 1.0 0.9 0.9 1.0
Town Services 4.6 4.6 5.0 7.0 6.7 6.8 7.0 7.2 7.4
Fines & Forfeitures 0.4 0.4 0.4 0.3 0.3 0.3 0.3 0.3 0.3 Interest 0.6 1.6 1.6 1.8 1.4 1.3 1.2 1.1 1.1
Other Sources 8.1 4.0 4.1 3.5 3.1 3.2 3.3 3.2 2.0
Fund Transfers In 0.5 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
$ 58.4 $ 55.9 $ 56.1 $ 56.4 $ 56.6 $ 58.7 $ 60.5 $ 62.6 $ 63.9 Use of Capital/Special Projects Reserve $ 2.4 $ 1.6 $ 2.0 $ 1.1 $ 1.1 $ 1.1 $ 1.1 $ 1.1 $ 1.1 Use of Measure G Sales Tax - Operating - - - 0.6 - - - - - Use of Pension/OPEB Reserve 0.3 0.3 0.3 - - - - - -
Use of Council Priorites - Economic Recovery - 1.5 1.5 - - - - - - $ 61.1 $ 59.3 $ 59.9 $ 58.1 $ 57.7 $ 59.8 $ 61.6 $ 63.7 $ 65.0 Expenditure Category FY 2022/23
Actuals
FY 2023/24
Adjusted
Budget
FY 2023/24
Estimates
FY 2024/25
Budget
FY 2025/26
Forecast
FY 2026/27
Forecast
FY 2027/28
Forecast
FY 2028/29
Forecast
FY 2029/30
Forecast
Salary $ 20.4 $ 21.3 $ 21.9 $ 23.6 $ 23.8 $ 24.5 $ 25.1 $ 25.7 $ 26.2 Overtime 1.4 0.6 1.3 0.6 0.7 0.7 0.7 0.7 0.7
CalPERS Benefits 7.1 8.2 7.2 8.8 9.1 9.7 10.4 11.2 11.8 All Other Benefits 3.8 4.7 4.4 5.6 6.1 6.3 6.5 6.7 6.8
4.6% Salary and Benefits Savings - - - (1.8) (1.8) (1.9) (2.0) (2.0) (2.1) OPEB Pay as You Go 1.5 1.6 1.6 1.7 1.9 2.0 2.0 2.0 2.0
Operating Expenditures 11.7 11.0 10.6 8.8 8.3 8.6 8.7 9.0 9.2 Grants & Awards 0.6 1.0 0.7 0.3 0.2 0.2 0.2 0.2 0.3
Utilities 0.6 0.7 0.7 0.7 0.7 0.8 0.8 0.8 0.8
Internal Service Charges 2.6 3.4 3.4 4.4 5.2 5.4 5.6 5.8 6.1 Debt Service 2.0 2.1 2.1 2.1 2.1 2.1 2.1 2.1 0.8
$ 51.8 $ 54.5 $ 53.9 $ 54.8 $ 56.2 $ 58.4 $ 60.1 $ 62.2 $ 62.7 Additional Discretionary Payment - Pension 0.7 0.7 0.7 0.4 0.4 0.4 0.4 0.4 0.4 $ 52.5 $ 55.2 $ 54.6 $ 55.2 $ 56.6 $ 58.8 $ 60.5 $ 62.6 $ 63.1 Capital Transfers Out to GFAR $ 2.4 $ 1.6 $ 1.6 $ 1.1 $ 1.1 $ 1.1 $ 1.1 $ 1.1 $ 1.1 Transfer to General Liability - - 0.4 - - - - - -
1/2 of Measure G Proceeds to Capital 0.6 0.6 0.7 0.6 0.6 0.7 0.7 0.7 0.7 Allocate to ERAF Risk Reserve 0.7 0.7 0.7 0.8 0.8 0.8 0.8 0.8 0.8 Allocate to Pension Trust 0.7 0.7 0.7 0.4 0.4 0.4 0.4 0.4 0.4 $ 56.2 $ 58.8 $ 58.7 $ 58.1 $ 59.5 $ 61.8 $ 63.5 $ 65.6 $ 66.1 $ 4.9 $ 0.5 $ 1.1 $ - $ (1.8) $ (2.0) $ (1.9) $ (1.9) $ (1.1) * Due to rounding of individual categories total revenues, expenditures, and reserve allocations may include $0.1 million.
NET REVENUES , TRANSFERS IN, USE OF RESERVES
LESS EXPENDITURES, TRANSFERS IN, AND RESERVE
ALLOCATIONS
TOTAL REVENUES, TRANSFERS, AND USE OF
RESERVES*
TOTAL EXPENDITURES & RESERVE ALLOCATIONS*
TOTAL OPERATING REVENUES & TRANSFERS
TOTAL OPERATING EXPENDITURES
TOTAL OPERATING & DISCRETIONARY
EXPENDITURES
ITEM NO. 17.
20 ATTACHMENT 2
Account Revenue Category
FY 2015/16
Actuals
FY 2016/17
Actuals
FY 2017/18
Actuals
FY 2018/19
Actuals
FY 2019/20
Actuals
FY 2020/21
Actuals
FY 2021/22
Actuals
4100 Property Tax $ 10.8 $ 11.5 $ 12.5 $ 13.6 $ 14.5 $ 15.8 $ 16.9 4110 VLF Backfill Property Tax 3.0 3.2 3.4 3.7 3.9 4.1 4.2 4200 Sales & Use Tax 7.5 9.2 7.6 8.0 6.5 6.8 7.2
4200 Measure G District Sales Tax - - - 0.2 1.0 1.1 1.3 4250 Franchise Fees 2.3 2.4 2.5 2.5 2.5 2.5 2.8
4251 Transient Occupancy Tax 1.9 2.3 2.6 2.7 1.9 1.0 1.9 4400 Business License Tax 1.5 1.7 1.7 1.5 1.4 1.4 1.5
4400 Licenses & Permits 3.5 3.0 3.0 3.1 2.7 3.1 4.8
4500 Intergovernmental 1.0 0.9 1.0 0.9 1.0 1.6 1.3
4600 Town Services 4.0 3.3 4.4 4.4 4.4 4.6 5.3
4700 Fines & Forfeitures 0.9 0.9 0.7 0.5 0.3 0.1 0.3
4800 Interest 0.6 0.2 0.2 1.4 2.2 0.1 (1.4)
4850 Other Sources 2.3 4.3 3.2 4.6 2.7 3.7 7.0
4900 Fund Transfers In 2.4 0.3 0.8 1.6 0.6 0.7 0.6
Use of Capital/Special Project Reserve - $ 41.7 $ 43.2 $ 43.6 $ 48.7 $ 45.6 $ 46.6 $ 53.7 Capital - 1.4 3.2 2.8 8.0 3.4 0.6
Use of Pension/OPEB Reserve - - - - - 4.5 0.3
Use of Property Surplus Reserve - - - - - - 1.2
Use of Almond Grove Reserve - 5.9 - - - - -
Use of Measure G Reserve - - - - - - 1.1
$ 41.7 $ 50.5 $ 46.8 $ 51.5 $ 53.6 $ 54.5 $ 56.9
Account Expenditure Category FY 2015/16
Actuals
FY 2016/17
Actuals
FY 2017/18
Actuals
FY 2018/19
Actuals
FY 2019/20
Actuals
FY 2020/21
Actuals
2021/22
Actuals
5110 Salary 14.5 14.8 16.0 17.9 19.3 20.2 20.0
5120 CalPERS Benefits 3.6 3.9 4.3 5.3 6.1 6.4 6.5
5200 All Other Benefits 3.2 3.2 3.3 3.6 3.6 3.7 3.7
6211 OPEB Pay as You Go 0.9 1.0 1.1 1.2 1.2 1.3 1.4
6000 Operating Expenditures 4.7 4.8 5.0 5.6 5.1 5.7 10.4 7200 Grants & Awards 0.7 0.2 0.2 0.3 0.3 0.3 1.8
7400 Utilities 0.4 0.6 0.5 0.5 0.5 0.6 0.6
8060 Internal Service Charges 3.5 3.6 3.9 2.5 2.2 2.3 2.6 8900 Debt Service 1.9 1.9 1.9 1.9 1.9 2.0 2.1
$ 33.6 $ 34.0 $ 36.2 $ 38.8 $ 40.2 $ 42.4 $ 49.0
GASB 45 Retiree Medical Actuarial 1.5 2.6 1.6 1.1 1.1 0.6 0.1 Additional Discretionary Payment - Pension - - - - - 5.6 0.7 $ 35.1 $ 36.6 $ 37.8 $ 39.9 $ 41.3 $ 48.6 $ 49.8
Capital Transfers Out to GFAR 0.5 7.3 2.6 2.3 7.0 3.4 1.2 Operating Tranfer Out 0.1 - 0.6 0.5 1.1 - -
1/2 of Measure G Proceeds to Capital - - - - - - 0.7
Fixed Assets/ Equipment Pension/OPEB Payment to Pension Trust 0.4 - - - 0.1 - - Fund - - 1.2 3.6 0.4 - -
$ 5.6 $ 6.6 $ 4.6 $ 5.2 $ 3.7 $ 2.5 $ 5.9
Allocate to Almond Grove Reserve Allocate to Budget 2.5 - - - - - - Stabilization/Catastrophic - - - - - 0.1 1.1
Allocate to Compensated Absences - - - - - 0.1 (0.2)
Allocate to Market Fluctuations Reserve 0.3 0.3 - - 1.2 - (0.4) Allocate to CalPERS/Pension Reserve - 1.8 - - - 0.3 0.3 Allocate to Measure G Reserve - - - - 1.2 - -
Allocate to VM & Stores Surplus Reserve - - - 1.0 - - - Allocate to Authorized Carryforwards 0.1 - - - - - 0.03 Sales Tax Prior - Year Adjusments - 0.4 - - - - -
Allocate to Property Surplus Reserve - - - 1.9 - 1.2 -
$ 39.0 $ 46.4 $ 42.2 $ 49.2 $ 52.2 $ 53.7 $ 52.2
$ 2.7 $ 4.1 $ 4.6 $ 2.3 $ 1.4 $ 0.8 $ 4.7
TOTAL OPERATING & DISCRETIONARY EXPENDITURES
AMOUNTS AVAILABLE FOR RESERVE ALLOCATIONS
TOTAL EXPENDITURES & RESERVE ALLOCATIONS
NET REVENUES RESERVE TRANSFERS LESS EXPENDITURES &
RESERVE ALLOCATIONS FOR FINAL ALLOCATION AFTER YEAR
END CLOSE
* Due to rounding of individual categories Total Expenditures and Reserve Allocations may include $0.1 million.
General Fund (111) Historical presentaion does not include Pension Trusts activities.
TOTAL OPERATING EXPENDITURES
TOTAL OPERATING REVENUES & TRANSFERS*
TOTAL REVENUES, TRANSFERS, AND USE OF RESERVES
Town of Los Gatos General Fund Historical Year-End Results (in $ million)
ITEM NO. 17.
21 ATTACHMENT 2
REVENUE BASELINE AND PROJECTION FACTORS (FY 2024-25 PROPOSED BUDGET – PUBLISHED 4/22/2024)
ITEM NO. 17.
22 ATTACHMENT 2 Page 599
ITEM NO. 17.
23 ATTACHMENT 2
EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2024-25 PROPOSED BUDGET – PUBLISHED 4/22/2024)
ITEM NO. 17.
24 ATTACHMENT 2 Page 601
ITEM NO. 17.
25 ATTACHMENT 2
SUMMARY OF CHANGES FY 2024-25
FROM PROPOSED TO ADOPTED
Per Measure A, the Finance Commission received the Proposed FY 2023/24 Operating and Capital Budgets 21 business days before May 16, 2023, which was the first meeting at which the Proposed Budgets were considered by the Town Council. The Finance Commission held three public meetings at which Commissioners discussed the Proposed Budgets and provided recommendations to the Town Council per Measures A and G. On May 16, 2023, the Town Council conducted a public hearing to discuss the proposed FY 2023/24 Operating and Capital Summary Budget and Proposed FY 2023/24 – 2027/28 Capital Improvement Program. The Town Council considered public testimony, discussed both documents, considered the Finance Commission recommendations, and directed staff to bring back the documents for final approval incorporating the Council recommendations.
The Town Council adopted a balanced budget on June 6, 2023. The Adopted Budget includes a 4.6% vacancy factor, while Council directed that staff continue to hire for all vacant positions. The 4.6% salary savings represents approximately $1.7 million projected saving that eliminates a need for Other Post Employment Benefits (OPEB) Trust withdrawal. The Adopted Budget fully recognizes the Educational Revenue Augmentation Fund (ERAF) proceeds for FY 2023/24. The Council programmed 70% of the estimated revenue and reserved 30% as the “at risk” amount until the lawsuit between the State and the School Districts is resolved.
The following table represent the changes from the proposed budget to the adopted budget.
ITEM NO. 17.
26 ATTACHMENT 2
While the Adopted Budget document reflects all of the approved changes, the Town Manager Transmittal Letter dated April 17, 2023 represents the proposed FY 2023/24 Operating and Capital Budgets as it was submitted on April 17, 2023. The five-year forecast on the following page has been updated to reflect the adjustments to revenues and expenditures in the FY 2023/24 Adopted Budget. 2023/24 Estimated 2023/24
Proposed Budget Recommended
Budget Revision Budget
REVENUES
General Fund $54,130,896 $ (914,326) (1) $ 53,216,570
Special Revenue Funds 542,380 - $ 542,380
Internal Service Funds 4,947,389 - $ 4,947,389
Capital Project Funds (does not include carryforwards) 8,547,920 - $ 8,547,920 Successor Agency Funds 3,811,664 - $ 3,811,664
TOTAL REVENUES $71,980,249 $ (914,326) $ 71,065,923
OTHER FUNDING SOURCES
Designated One-Time Use of General Fund Reserves 2,361,000 $ 33,000 2,394,000 (2) TOTAL TOWN REVENUES & OTHER FUNDING SOURCES $74,341,249 $ (881,326) $ 73,459,923
TOTAL TOWN EXPENDITURES, TRANSFERS OUT & CARRYFORWARD APPROPRIATION General Fund $56,101,896 $ (1,586,649) (3) $ 54,515,247 Special Revenue Funds 469,381 (9,794) (4) 459,587
Internal Service Funds 6,132,798 - 6,132,798
Capital Project Funds (does not include carryforwards) 10,658,747 - (5) 10,658,747 Successor Agency Funds 3,801,021 (87) (6) 3,800,934
TOTAL TOWN EXPENDITURE & OTHER FUNDING USES $77,163,843 $ (1,596,530) $ 75,567,313 GENERAL FUND SOURCE(USE) OF FUND BALANCES $ 390,000 $ 660,900 $ 1,095,323 OTHER FUNDS SOURCE(USE) OF FUND BALANCES (3,212,594) (3,202,713) (7) TOTAL SOURCE(USE) OF FUND BALANCES $ (2,822,594) $ 715,204 $ (2,107,390) Numbers may differ between exhibits due to rounding.
(4) Special Revenue Fund Expenditures
$9,794 - Decrease - 4.6% Salary Saving Factor
(1) Additional General Fund Revenues
$1,608,226 Decreases OPEB Trust Reimbursement for Retiree Medical $660,900 Increases Additional ERAF Proceeds to Reserve At Risk $33,000 - Increase ARPA Replacement Pass Through Revenue - Tracking (2) Designated One-Time Use of the General Fund Reserves during FY 2023/24 $1,615,000 - Transfer to Capital Projects (GFAR)
$779,000 - ARPA Revenue Replacement Tracking
(3) General Fund Expenditures
$1,663,649 - Decrease - 4.6% Salary Saving Factor
$11,000- Increase Project Based Boards and Commissions Support $33,000 - Increase Chamber Agreement
$33,000 - Increase ARPA Replacement Pass Through Expenditure - Tracking (5) Capital Project Funds Expenditures
No Change in Total Expenditures, $35,000 transferred from the Lynn Avenue Pedestrian Path Design Project (411-832-4510) to Emergency Preparedness Project (411-821-2012) (7) Other Funds Source (Use) represents planned one-time uses of Internal Service Funds, Special Revenue Funds, Trust Funds, and Capital Project Funds primary for infrastructure and equipment investment.
(6) Successor Agency Funds Expenditures
$87 - Decrease - 4.6% Salary Saving Factor
ITEM NO. 17.
27 ATTACHMENT 2
The following table illustrates the previous projected deficits relative to the updated Forecast.
Original 5 Year Forecast 2024/25
Forecast
($M)
2025/26
Forecast
($M)
2026/27
Forecast
($M)
2027/28
Forecast
($M)
2028/29
Forecast
($M)
Proposed Surplus/Deficit ($3.1) ($2.8) ($3.2) ($3.5) ($4.0) Adopted Surplus/Deficit ($3.0) ($2.8) ($3.1) ($3.3) ($3.8) Account Revenue Category
FY 2022/23
Adjusted
Budget
FY 2022/23
Estimates
FY 2023/24
Adopted
Budget
FY 2024/25
Forecast
FY 2025/26
Forecast
FY 2026/27
Forecast
FY 2027/28
Forecast
FY 2028/29
Forecast
4100 Property Tax $ 17.0 $ 17.2 $ 17.9 $ 17.8 $ 18.5 $ 18.9 $ 19.5 $ 20.1 4110 VLF Backfill Property Tax 4.6 4.6 4.7 4.8 5.0 5.1 5.3 5.4 4200 Sales & Use Tax 7.5 7.7 7.9 8.1 8.5 8.7 9.0 9.3
4200 Measure G District Sales Tax 1.3 1.3 1.3 1.3 1.3 1.4 1.4 1.4 4250 Franchise Fees 2.7 2.7 2.1 1.9 1.9 1.9 2.0 2.0
4251 Transient Occupancy Tax 2.0 2.3 2.4 2.5 2.6 2.6 2.6 2.7 4400 Business License Tax 2.4 2.3 2.4 2.5 2.5 2.6 2.6 2.7 4400 Licenses & Permits 2.9 2.9 2.9 2.9 3.0 3.1 3.2 3.3 4500 Intergovernmental 1.3 1.3 0.9 0.9 0.9 1.0 1.0 1.0
4600 Town Services 4.8 5.1 4.4 4.2 4.2 4.3 4.4 4.6
4700 Fines & Forfeitures 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 4800 Interest 0.4 0.7 1.0 0.9 0.9 0.9 0.9 0.9
4850 Other Sources 3.5 7.1 3.6 2.8 2.8 3.0 2.9 2.9
4900 Fund Transfers In 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5
Use of Capital/Special Project Reserve - $ 51.1 $ 55.9 $ 52.2 $ 51.3 $ 52.8 $ 54.2 $ 55.5 $ 57.0 Capital 2.4 2.4 1.6 0.8 0.8 0.8 0.8 0.8
Use of Pension/OPEB Reserve 0.3 0.3 - - - - - -
Use of OPEB Trust - - - - - -
ARPA Replacement Revenue Use of Council Priorites - Economic 1.6 - - - - - - - Vitalities - 6.1 0.7 - - - - -
$ 55.4 $ 64.7 $ 54.5 $ 52.1 $ 53.6 $ 55.0 $ 56.3 $ 57.8 Account Expenditure Category
FY 2022/23
Adjusted
Budget
FY 2022/23
Estimates
FY 2023/24
Adopted
Budget
FY 2024/25
Forecast
FY 2025/26
Forecast
FY 2026/27
Forecast
FY 2027/28
Forecast
FY 2028/29
Forecast
5110 Salary 23.0 22.5 23.2 23.8 24.4 25.0 25.5 26.0
5120 CalPERS Benefits 7.7 6.8 8.2 8.6 8.9 9.6 10.2 11.1 5200 All Other Benefits 4.6 3.9 4.7 4.8 4.9 5.0 5.1 5.2
4.6% Salary and Benefits Savings - - (1.7) (1.7) (1.8) (1.8) (1.9) (1.9) 6211 OPEB Pay as You Go 1.6 1.6 1.6 1.8 1.9 2.0 2.0 2.0 6000 Operating Expenditures 8.0 11.7 9.0 8.8 8.9 9.2 9.3 9.7 7200 Grants & Awards 0.5 1.2 0.8 0.6 0.6 0.3 0.3 0.3
7400 Utilities 0.6 0.6 0.6 0.6 0.7 0.7 0.7 0.7
8060 Internal Service Charges 2.7 2.6 3.4 3.6 3.7 3.9 4.1 4.2 8900 Debt Service 2.0 2.0 2.1 2.1 2.1 2.1 2.1 2.1
$ 50.8 $ 53.0 $ 51.9 $ 52.9 $ 54.2 $ 55.9 $ 57.4 $ 59.4 GASB 45 Retiree Medical Actuarial - - - - - - - -
Additional Discretionary Payment - Pension 0.7 0.7 0.4 0.4 0.4 0.4 0.4 0.4 $ 51.5 $ 53.7 $ 52.3 $ 53.3 $ 54.6 $ 56.3 $ 57.8 $ 59.8 Capital Transfers Out to GFAR 2.4 2.4 1.6 1.1 1.1 1.1 1.1 1.1 1/2 of Measure G Proceeds to Capital Pension/OPEB Transfer to Pension Trust 0.6 0.6 0.6 0.7 0.7 0.7 0.7 0.7 Fund 0.4 0.7 - - - - - -
Allocate to Council Priorites - Economic
Recovery - 5.7 - - - - - -
$ 54.9 $ 63.1 $ 54.5 $ 55.1 $ 56.4 $ 58.1 $ 59.6 $ 61.6 $ 0.5 $ 1.6 $ - $ (3.0) $ (2.8) $ (3.1) $ (3.3) $ (3.8) * Due to rounding of individual categories FY 2022/23 Estimated Total Expenditures and Reserve Allocations includes $0.1 million.
General Fund (111) Forecast does not include Pension Trust activities.
NET REVENUES RESERVE TRANSFERS LESS EXPENDITURES &
RESERVE ALLOCATIONS FOR FINAL ALLOCATION AFTER YEAR
END CLOSE
TOTAL REVENUES, TRANSFERS, AND USE OF RESERVES
TOTAL EXPENDITURES & RESERVE ALLOCATIONS
TOTAL OPERATING REVENUES & TRANSFERS*
TOTAL OPERATING EXPENDITURES
TOTAL OPERATING & DISCRETIONARY EXPENDITURES
AMOUNTS AVAILABLE FOR RESERVE ALLOCATIONS
ITEM NO. 17.
28 ATTACHMENT 2
FY 2023-24 MID-YEAR-REPORT AND FORECAST – PUBLISHED 2/10/2024
ITEM NO. 17.
29 ATTACHMENT 2
REVENUE BASELINE AND PROJECTION FACTORS (FY 2023-24 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/10/2024)
ITEM NO. 17.
30 ATTACHMENT 2 Page 607
ITEM NO. 17.
31 ATTACHMENT 2
EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2023-24 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/10/2024)
ITEM NO. 17.
32 ATTACHMENT 2
FY 2023-24 PROPOSED BUDGET FORECAST- PUBLISHED 4/17/2023
ITEM NO. 17.
33 ATTACHMENT 2
REVENUE BASELINE AND PROJECTION FACTORS (FY 2023-24 PROPOSED BUDGET - PUBLISHED 4/17/2023)
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EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2023-24 PROPOSED BUDGET - PUBLISHED 4/17/2023)
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37 ATTACHMENT 2
FY 2022-23 MID-YEAR REPORT AND FORECAST- PUBLISHED 2/10/2023
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REVENUE BASELINE AND PROJECTION FACTORS (FY 2022-23 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/10/2023)
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EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2022-23 MID-YEAR REPORT AND FORECAST – PUBLISHED 2/10/2023)
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43 ATTACHMENT 2
FY 2022-23 PROPOSED BUDGET FORECAST- PUBLISHED 4/18/2022
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REVENUE BASELINE AND PROJECTION FACTORS (PROPOSED FY 2022-23 BUDGET – PUBLISHED 4/17/2022)
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EXPENDITURE BASELINE AND PROJECTION FACTORS (PROPOSED FY 2022-23 BUDGET – PUBLISHED 4/17/2022)
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48 ATTACHMENT 2
FY 2021-22 MID-YEAR REPORT AND FORECAST- PUBLISHED 2/11/2022
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REVENUE BASELINE AND PROJECTION FACTORS (FY 2021-22 MID-YEAR AND FORECAST - PUBLISHED 2/11/2022)
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EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2021-22 MID YEAR AND FORECAST - PUBLISHED 2/11/2022)
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FY 2021-22 PROPOSED BUDGET - PUBLISHED 4/19/2021
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REVENUE BASELINE AND PROJECTION FACTORS (FY 2021-22 PROPOSED BUDGET - PUBLISHED 4/19/2021)
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EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2021-22 PROPOSED BUDGET - PUBLISHED 4/19/2021)
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FY 2020-21 MID-YEAR REPORT AND FORECAST - PUBLISHED 2/12/2021
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REVENUE BASELINE AND PROJECTION FACTORS (FY 2020-21 MID-YEAR AND FORECAST - PUBLISHED 2/12/2021)
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EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2020-21 MID-YEAR AND FORECAST - PUBLISHED 2/12/2021)
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FY 2020-21 PROPOSED BUDGET - PUBLISHED 4/19/2021
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REVENUE BASELINE AND PROJECTION FACTORS (FY 2020-21 PROPOSED BUDGET - PUBLISHED 4/19/2021)
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EXPENDITURE BASELINE AND PROJECTION FACTORS (FY 2020-21 PROPOSED BUDGET - PUBLISHED 4/19/2021)
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ITEM NO. 17.
PREPARED BY: Chris Constantin
Town Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 04/22/2025
ITEM NO: 1
DATE: April 22, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Discussion and Consideration of Direction for the 2025-26 Budget Including Budget Balancing Approaches
RECOMMENDATION:
Staff recommends the Town Council
• Discuss and provide input to staff in developing the budget, and • Provide direction to the Finance Commission in their review of the 2025-26 budget.
STRATEGIC PRIORITIES:
The item relates to all six core goals and all strategic priorities.
FISCAL IMPACT:
None. The discussion is intended to set direction for budget development and does not in itself result in a fiscal impact.
BACKGROUND:
Each year, between January and June, the Town undertakes an extensive process to prepare the fiscal year budget, effective July 1. This comprehensive budget development effort includes evaluating and determining several key components
• Budget Guidelines and Timeline: Establish initial guidance and expectations for departments along with a structured calendar of budget development and approval activities.
• Revenue Projections: Forecast anticipated revenues utilizing historical data trends, economic indicators, and consultations with external revenue consultants. • Personnel Costs: Project salary, wage adjustments, benefits, and pension obligations for current and proposed staffing levels.
ATTACHMENT 3
ITEM NO. 17.
PAGE 2 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
• Setting Strategic Priorities: Identify and reaffirm strategic priorities, providing foundational guidance to shape budget formulation and resource allocation. • Operating and Capital Expenditures: Assess and prioritize operational necessities and capital improvement projects, balancing immediate needs and long-term investments. • Budget Balancing and Deficit Reduction: Develop strategies to align expenditures with available resources, actively addressing any structural budget deficits through targeted reductions or revenue enhancements.
• Public Input: Engage the community through transparent outreach efforts to gather and incorporate public feedback into the budget development process. • Budget Approval: Finalize and present the recommended budget for Town Council consideration and adoption.
In February 2025, the Town Council set high-level strategic priorities for the period of 2025- 2027. This included prioritizing emergency preparedness, particularly with regard to wildfire risks, ensuring prudent financial management, and preserving the unique small-town charm of the community.
Also in February 2025, the Finance Commission reviewed the Town’s initial Five-Year Financial Forecast, discussing projected financial conditions and emerging fiscal challenges.
Subsequently, in April 2025, the Finance Commission provided input into the development of a Request for Proposal (RFP) aimed at conducting an external Five-Year Forecast and a comprehensive Fiscal Impact Analysis. These efforts are designed to enhance the Town’s strategic approach to understanding current financial condition, addressing ongoing structural budget deficits, and projecting the revenue and expenditure needs from future development.
For the upcoming 2025-26 fiscal year, the Town faces a projected operational deficit of approximately $3.7 million. To effectively address this challenge, Town staff seeks specific direction from the Town Council regarding:
• Perspective on expenditure reduction measures outlined in progressively impactful tiers,
• Exploration and adoption of potential new or adjusted revenue-generating initiatives, • Identification of preferred strategies for achieving a balanced budget that aligns with established strategic priorities and community expectations.
Council’s guidance on these key decisions will significantly inform the preparation of the final 2025-26 budget, ensuring a sustainable financial path forward.
DISCUSSION:
The purpose of this special meeting is to provide directions to staff on the approach and considerations for preparing a balanced budget. In two other agenda items presented today, staff also are looking to present a new tiered framework for capital improvement programs and presenting options in how the Town proceeds with community organization funding.
ITEM NO. 17.
PAGE 3 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
Approach and Considerations to Balancing the Budget
As is the case with other communities, the Town budgets revenue and expenditures conservatively. For the capital improvement program, the capital budget appropriates funding for all projects in the fiscal year that may be undertaken regardless of staff capacity consideration.
Personnel Vacancy Factor of 4.6%
In 2024-25, the Town introduced a vacancy factor of 4.6% as part of its approach to balance the budget recognizing vacancies and personnel changes during the year resulted in avoided personnel expenditures.
The vacancy factor approach allowed the Town to capture these avoided expenditures up front in the year instead of the end. However, the approach also increased the risk the Town could still fill all its positions without restriction or see a different change in personnel expenditure (i.e. impacts of increases in total compensation) and if it comes to pass, the Town will experience the actual deficit it was intending to avoid.
The Government Finance Officers Association (GFOA) best practice in effective budgeting of salary and wages encourages every government to consider forecasting procedures that would result in more accurate expenditure projections, especially as they relate to personnel. However, the best practice is focused solely on determining more precise expenditure projections.
In a 2020 article published by the GFOA called “Balancing the Budget in Bad Times”, the GFOA recommends governments institute good control systems to stay on track with financial plans and forecasts. Specifically around position control, the article recommends the government maintain head count within limits and not fill vacancies unless it is affordable. Other areas speak to monitoring the budget to actual expenditures, purchasing controls, capital project controls, and evaluating impact of performance versus the cost of that performance.
ITEM NO. 17.
PAGE 4 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
Moving forward for 2025-26
The Town’s 2025-2027 top strategic priority includes proper financial management to result in a structurally balanced forecast over the future years. To this end, I am recommending the following approaches for the 2025-26 budget.
• Year 1 – Balancing Reserve Fund Use with Operational Reductions – to ensure the Town does not overly reduce operations only to find its conservative projections and reductions lead to significant surpluses, this approach allows the Town to leverage some of its reserve balances to give time for other measures to facilitate closing the gap.
o Council Direction – determine to what extent the Town budget will use reserves to cover the deficit and what level of reductions and revenue enhancements should be considered in 2025-26.
• Year 1 – Capital Improvement Planning – as will be discussed in the Capital Improvement Program budget discussion, move to a three tier program that only appropriates funding for those projects that have staff capacity to perform while leaving remaining funding unallocated.
o Council Direction – to be given during discussion of the next agenda item.
• Additional Controls on Expenditure Controls – implement more top-level controls to monitor budget performance and balance operations with cost containment. No formal action is needed, but internal measures are moving forward.
o Position Control – while no vacancy freeze is proposed currently, the Town Manager has implemented a robust evaluation process for filling vacant positions which balances operations, financial condition, strategic priorities, and service levels.
o Expenditure Control – additional controls are being considered to include vehicle replacement evaluation, budget control at a lower level in departments, and additional budget monitoring mechanisms.
Moving into the fiscal year, the Town will need to continue fiscal prudence and planning for how to address the structural nature of the deficit. This may include evaluating how resources are deployed across functions, determining what sustainable service levels are, engaging in more robust public input in what the public desires from the Town, evaluating how major cost drivers can be brought into alignment with available revenue, and identifying other strategies for bringing the Town back into balance. These efforts will be challenging in ways not experienced by the Town, but we are a strong, smart, and resilient community who are up to the task.
ITEM NO. 17.
PAGE 5 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
Town’s Five-Year Forecast
The Five-Year Financial Forecast (FY 2026-27 through FY 2030-31) serves as a key component of the Town’s annual budget development process, enabling an informed evaluation of the Town’s fiscal outlook to guide policy decisions and programmatic planning. This forecast follows the best practices recommended by the Government Finance Officers Association (GFOA) and incorporates assumptions and estimates based on the FY 2024-25 Mid-Year Review and updated projections from the FY 2025-26 Proposed Budget development (see Attachments 1 and 2).
The Forecast projects ongoing deficits beginning at approximately $3.7 million in FY 2025-26, driven primarily by salary increases (already negotiated through FY 2026-27 and assumed at 2% annually thereafter), pension obligations, and general cost escalation. To manage the immediate deficit, short-term strategies include expenditure controls and utilizing $3.7 million from the Unassigned Fund Balance. However, with revenues not keeping pace with rising costs, the Town must evaluate its long-term revenue capacity to sustain current service levels.
ITEM NO. 17.
PAGE 6 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
ITEM NO. 17.
PAGE 7 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
Operating Revenue Trends
The Town’s financial health significantly depends on four primary revenue sources—property tax, sales tax, business license tax, and transient occupancy tax (TOT)—which together account for 67.5% of the forecasted General Fund revenues. Revenue assumptions for the Forecast period reflect input from key economic consultants, including MuniServices (sales tax), HdL Coren and Cone (property tax), and local industry representatives (TOT) (see Attachment 1).
The forecast assumes all Measure G Sales Tax and Excess Education Revenue Augmentation Fund (ERAF) revenues are allocated fully to General Fund operations.
Operating Expenditure Trends
Operating expenditures are primarily influenced by cost escalation and new or enhanced service programs approved annually. Key cost drivers include inflation, negotiated labor agreements, healthcare, and mandated CalPERS pension contributions (detailed in Attachment 2).
Personnel costs constitute approximately 65.6% of the FY 2025-26 General Fund expenditures.
To manage rising labor costs, the Town has maintained lower staffing levels. Pension and Other Post-Employment Benefits (OPEB) obligations continue to escalate due to historical underperformance in CalPERS investments and changes in demographic and actuarial assumptions. Despite proactive measures such as closing Tier 1 pensions, adopting the Public Employees’ Pension Reform Act (PEPRA), and prefunding OPEB liabilities (now holding $28.1 million in assets), pension costs remain a major financial pressure.
General Fund Reserves are projected at $25.9 million by June 30, 2026, reflecting previous significant transfers to pension/OPEB obligations and Capital Improvement Programs (CIP).
Historical transfers ranged from $1.1 million (FY 2024-25) to $5.7 million (FY 2019-20). No CIP transfer is proposed in FY 2025-26. Significant pension-related transfers include the CalPERS side-fund payoff ($4.5 million, 2014) and additional discretionary payments totaling $10.5 million from FY 2019-20 to FY 2020-21. The FY 2025-26 Proposed Budget achieves balance through the utilization of $3.7 million of the Unassigned Fund Balance.
The following two charts show the historical breakdown of the General Fund reserve balances.
ITEM NO. 17.
PAGE 8 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
6/30/2016
Actual
6/30/2017
Actual
6/30/2018
Actual
6/30/2019
Actual
6/30/2020
Actual
6/30/2021
Actual
6/30/2022
Actual
6/30/2023
Actual
6/30/2024
Actual
6/30/2025
Estimated
6/30/2026
Proposed
Restricted for:
Pension $ - $ - $ - $ 5,015,316 $ 669,978 $ - $ 690,000 $ 1,400,163 $ 2,188,659 $ 2,878,659 $ 3,268,659 Property Held for Resale 44,338 344,338 - -
Commited to:
Budget Stabilization $ 6,621,808 $ 4,969,847 $ 5,037,243 $ 5,419,222 $ 5,427,603 $ 5,460,485 $ 5,991,566 $ 6,129,774 $ 6,736,781 $ 7,991,544 $ 7,991,544 Catastrophic 4,637,406 4,969,847 5,037,243 5,419,222 5,427,603 $ 5,460,485 $ 5,991,566 6,129,775 6,736,781 7,991,544 7,991,544 Pension/OPEB 300,000 3,388,913 2,878,913 4,232,500 4,532,500 300,000 300,000 300,000 300,000 1,000,000 1,000,000 Almond Grove 8,459,973 1,801,318 - - - - - - - -
Measure G District Sales Tax - Operating - - - - - - - 590,581 590,581 - - Assigned to:
Open Space $ 562,000 $ 562,000 $ 562,000 $ 562,000 $ 410,000 $ 410,000 $ 410,000 $ 410,000 $ 410,000 $ 410,000 $ 410,000 Sustainability 140,553 140,553 140,553 140,553 140,553 140,553 140,553 140,553 140,553 140,553 140,553 Strategy 2,600,000 2,600,000 129,090 - - - - - - - -
Capital / Special Projects 4,222,405 8,332,953 14,421,203 13,262,303 8,787,958 6,965,356 11,071,231 10,359,577 8,651,056 1,264,639 1,264,639 Authorized Carryforward 99,284 34,852 99,927 413,729 - - 33,145 37,698 85,861 85,861 85,861 Compensated Absences - 350,329 2,122,512 1,232,653 1,539,408 1,649,917 1,519,147 1,580,623 1,555,478 1,555,478 1,555,478 To Workers' Compensation - - - 1,232,654 - - - - - - -
Measure G District Sales Tax - Op/Cap - - - - 1,181,162 1,730,490 590,581 - - - - Stores & Veh. Maint. Residual - - - 1,040,375 - - - - - - - Market Fluctuations - - - - 1,218,732 438,333 - - 1,712,246 1,712,246 1,712,246 Surplus Property - - - - - 1,200,000 - - - - -
ERAF Risk Reserve - - - - - - - 689,608 1,430,054 - -
Council Priorities - Economic Recovery - - - - - - - 1,556,614 20,684 - - Other - - - - - 159,000 159,000 159,000 159,000 159,000 159,000 Un assigned Fund Balance 4,000,000 341,785
Total General Fund Reserve $ 27,643,429 $ 27,150,612 $ 30,428,684 $ 37,970,527 $ 29,335,497 $ 23,914,619 $ 26,896,789 $ 29,528,304 $ 31,062,072 $ 29,189,524 $ 25,921,309 General Fund Reserve
ITEM NO. 17.
PAGE 9 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
Expenditure and Deficit Reduction Options
The Town’s Executive Team came together to thoughtfully consider options to address the deficit. This exercise resulted in four groups of reduction considerations that will be referred to as tiers for the purposes of this report. Each tier progressively increases the types of reductions considered and the associated impacts, totaling to a potential savings of $5 million. None of the four tiers include the elimination of filled full-time positions and all core services will continue in some fashion, albeit some would experience a decreased level of service as described in more detail in each tier.
As the Council reviews the tiers, it would be helpful for the Council to provide feedback on anything they would be interested in potentially pursuing and anything they would prefer staff did not pursue further. Staff recommend implementing Tier 1 and potentially portions of Tier 2 if there are items the Council finds tenable, with the remainder of the deficit addressed with revenue solutions as described in the next section, or with reserves. The more expenditure reductions or revenue options that are implemented, the less the Town will need to rely on reserves. It is also important to note that the more expenditure reductions that are implemented now preserves the use of reserves for the future, allowing more flexibility and time to address the deficit.
Tier 1 (Estimated $500,000 savings):
In Tier 1, the team focused on efficiency and reprioritizing time and resources to align with core service delivery and strategic priorities. In this tier, the team was intentional in preserving staff hours and only reduced where part-time positions were either unfilled or currently filled by retired annuitants providing extra help. The reductions may mean that staff may not have funding available to address unusual or unexpected circumstances.
Of note, Tier 1 includes the removal of the $2,500 Commission Budgets, many of which were first added in May 2023, while the Youth Commission and Parks and Sustainability Commission had some funds prior. This would save approximately $17,500 annually as well as save staff time in clarifying the appropriate use of the funding. As the funding is primarily for supplies and materials to support commission activities, such as giveaway items at events, the Town plans to bulk purchase giveaway items for commission and staff to use at events and other activities as appropriate. This will save on costs as well as provide consistency. Staff will continue to support commissions in supplying printer materials and other needs within reason.
Tier 1 results in an estimated saving of $500,000 ($430,000 annually, $70,000 one-time). Some of these savings have already been proactively included in the Proposed FY 25-26 Budget. As a result, if Tier 1 is implemented, it would reduce the Proposed Budget expenditures by an estimated $300,000.
ITEM NO. 17.
PAGE 10 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
Tier 2 (Additional estimated $1M savings):
Tier 2 contemplates deeper reductions, yet without significantly impacting core service or reducing staff hours. Some strategic priority related funding begins to be impacted in this tier.
• Strategic Priority Impacts
o In Tier 2, funding related to the unhoused would be reduced by approximately $26,000, removing the portable restroom and reducing the amount of funding for the Hotel Program. It is important to note that the Hotel Program is still expected to have enough funding to operate appropriately given a typical winter. With increased inclement weather, the budget may be tight but would likely be offset by the reduced number of hotels participating due to redevelopment.
o Additionally, given the addition of the full-time Emergency Manager position, this tier reduces the number of part-time emergency coordinator hours, saving approximately $18,000. This would result in fewer hours for the Emergency Manager to spend on expanding the program and strategic action items, but would still allow some part-time hours to continue to support the work. This tier also includes defunding $500,000 of the $1,000,000 one-time emergency management funding Council allocated in January 2025. • Other Service Delivery Impacts
o Reduces in outside legal services of approximately $110,000, resulting in delays in Town Attorney response times, possibly by two to four weeks. o Removes power washing and decorative tree wrap lighting downtown, saving approximately $100,000.
o Turns off the fountains at Civic Center and Plaza Park, saving approximately $20,000.
o Removes doggie bags in parks as they often are taken by some members of the public in large quantities for personal use. This would save approximately $10,000.
o Reduces Library offerings including film, audiobook, and streaming media; e-resource databases and e-magazines; physical newspaper subscriptions; printed quarterly programs/brochures; and the number of media and book additions and replacements in the Library’s collection. These efforts would save approximately $84,000. o Reduces the amount the Town contributes toward utility payments on behalf of third parties.
o Involves further reductions in staff training and memberships that may cause staff to fall behind in the latest concerns and issues in their fields, potentially impacting service to the public over time.
Tier 2 results in an additional estimated savings of $1M ($0.5M annually, $0.5M one-time).