Los Gatos City Council
May 20, 2025

ITEM NO. 17.

PAGE 11 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
Tier 3 (Additional estimated $1.1M savings):

Tier 3 includes reductions with more significant impacts, including part-time staff hour reductions, vacant full-time positions, and noticeable service reductions. • Reorganizing Functions
o Reorganizes the process for Community Police Complaints from the Town Attorney’s Office to the Town Manager’s Office, saving approximately $60,000. This still allows oversight and vetting of the process by the Town Manager, but does not require the Town Attorney’s time, resulting in more Town Attorney time for activity currently being contracted out. • Strategic Priority Impacts
o Reimagines the Town’s transportation demand management functions to deliver services more cost effectively, such as through contracting services, saving approximately $200,000. This will potentially result in lower levels of service and a reduction in the Town’s relationships with funding partners like VTA and MTC, which may impact the Town’s ability to secure grant funding for significant transportation projects.
o Further reduces the number of part-time emergency coordinator hours, saving approximately an additional $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 limited part-time hours should an urgent or pressing need arise.
o Eliminates approximately $75,000 in funding, including vehicle costs, for volunteer programs such as the Volunteer in Policing Program, Police Explorer Program, Disaster Assistance Response Team (DART), Community Emergency Response Team (CERT), and the Community Police Academy. This has the potential to weaken emergency response readiness; however, some of this could be supplemented by leadership within the volunteer emergency-related volunteer groups. The reduction in Police volunteer programs would lower community participation in crime prevention and safety programs and reduce youth engagement with law enforcement. o Tier 3 includes the removal of the remaining funding for the Town’s unhoused initiatives, approximately $34,000. This would remove funding for the Hotel Program and the food pantry and shower programs. o Tier 3 contemplates reenvisioning contracts for the visitor center and destination marketing services to reduce costs and focus on the most beneficial deliverables for the businesses and community. • Other Part-Time Hour Impacts
o Beyond what has already been mentioned, this tier involves other parttime hour reductions, saving approximately $300,000. This would result in

ITEM NO. 17.

PAGE 12 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
fewer hours across several functions and potentially delayed service delivery.

As it pertains to the Library, this reduction will translate to the public as a reduction in program offerings, events, and auxiliary services. • Reductions in Service
o Further reduces the addition and replacement of Library books and media, saving approximately $27,000. Including the reductions in Tier 2, this reflects a 30% total reduction, and the public would likely experience increased wait times for popular materials and would see a decrease in the Library collection size over time.
o Reduces block pruning and tree management by 50%, saving approximately $100,000. At the current funding of $200,000, there is difficulty in keeping up with demand. This reduction would result in fewer trees being pruned and requests for service from the public remaining unmet, which could lead to frustration unless expectations are reset. o Tier 3 includes the reimagining of Town’s events, saving approximately $13,000. Most notably, a restructuring of the Town’s 4th of July event so that it would not fall on the actual holiday every year, which drastically increases costs. For example, it could occur on a Sunday in July to kick off the Music in the Park concert series, reducing the number of years in which the celebration falls on the actual holiday.
o Tier 3 contemplates that Leadership Los Gatos would be staggered to occur every other year, effectively resulting in a savings of approximately $5,000 a year (or $10,000 every other year).
o Tier 3 includes 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. In addition, it includes reductions or delays in technology replacements.

Tier 3 results in an additional estimated savings of 1.1M ($1M annually, $0.1M one-time).

Tier 4 (Estimated $2.4+ savings):

Subsequent tiers beyond Tier 3 would have more significant staffing impacts. If Tier 4 is selected, staff will return with more specifics regarding staffing implications after working with the bargaining units.

In addition, Tier 4 would begin to significantly impact core community services. For example, it would include contemplation of reduction of Library operating hours and Town public counter hours. As Tier 4 considers reductions in these core services, reducing Community Grant funding is included as well. Removing the Leadership Los Gatos program is also considered in this tier, saving approximately $20,000 annually. In addition, it contemplates removing approximately $130,000 in Police Department and Parks and Public Works overtime hours to support Town

ITEM NO. 17.

PAGE 13 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
hosted events, the Holiday Parade, and the Halloween road closures, impacting the types of events the Town can support. If this were to occur, funding for the Halloween and Holiday Parade road closures would also be removed, saving approximately $54,000. Other potential options include reducing the $50,000 in crossing guard funding, approximately $50,000 allocated for ALPR cameras, and the number of cable-broadcast Town Council or Planning Commission meetings.

Tier 4 results in an additional estimated savings of $2.4M annually.

Revenue Options
Cities typically seek revenue sources to fund essential services, often aiming for full-cost recovery. However, fee studies frequently reveal that actual service costs significantly exceed existing fees, making large increases difficult to implement due to public resistance. As a result, cities adopt strategies to soften the impact of these necessary increases. Common approaches include gradually phasing in fee increases over several years or intentionally setting fees below full-cost recovery levels to lessen opposition. While these measures may reduce immediate pushback, they inevitably result in lower overall revenue.

The same outcome occurs when cities hesitate to introduce new revenue programs, such as revenue recovery measures that did not previously exist. Though these gradual, partial, or new approaches initially appear politically manageable and mitigate short-term resistance, they can inadvertently shift fiscal pressures to future budgets.

Over time, the increased costs of providing programs and services plus the cumulative impact of consistently under-recovering costs or delaying necessary revenue increases creates structural deficits. These deficits progressively intensify fiscal pressures, eventually requiring more drastic actions in future budgets when available resources become insufficient to sustain existing services and operations.

Los Gatos faces similar challenges as other cities regarding revenue generation and cost recovery. Given the projected deficits and the need for potential expenditure reductions, exploring options to increase revenue becomes critical for balancing the Town’s ability to provide essential services. Revenue-generating options differ significantly based on implementation timelines. For instance, economic development initiatives designed to attract visitors and increase hotel occupancy could require upfront investment and years to yield substantial returns. In contrast, updating a fee schedule or renegotiating agreements may offer quicker financial benefits but face greater immediate opposition.

To facilitate consideration and decision-making, the following table categorizes revenuegenerating options into short-term (one year) and medium-term (two or more years) horizons, highlighting their potential revenue impact. This categorization clearly illustrates how each measure could help address the financial deficit, emphasizing the importance of balancing

ITEM NO. 17.

PAGE 14 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
immediate affordability concerns against the imperative of long-term financial sustainability.

Some of the short-term revenue measures are already factored into the proposed 2025-26 budget such as the recent police services agreement with Monte Sereno—while others illustrate potential avenues like revenue audits, subsidy reductions, and the introduction of entirely new revenue streams.

Short-term Medium-term Grand Total[1]
Revenue Audit $ 150,000 $ 150,000
Business License Compliance Audit $ 60,000 $ 60,000
Business License Delinquency Services $ 50,000 $ 50,000 Hotel Transient Occupancy Tax Audit $ 20,000 $ 20,000
Property Tax Recovery Services $ 20,000 $ 20,000
Reduce Subsidy $ 581,313 $ 225,000 $ 806,313
Adjusted Fee – Field Use Team 1 $ 59,973 $ 59,973
Adjusted Fee – Field Use Team 2 $ 13,145 $ 13,145
Adjusted Fee – Field Use Team 3 $ 1,890 $ 1,890
Application fee increase $ 50,000 $ 50,000
Enhanced Cost Recovery for DUI & Special Enforcement Operations $ 75,000 $ 75,000 Increase Fees for Services and Facility Rentals $ 100,000 $ 100,000 Increased and Added Event Fees $ 4,500 $ 4,500
New fee – Library meeting room rental $ 12,000 $ 12,000 Residential Alarm Registration & False Alarm Fee Implementation $ 150,000 $ 150,000 Subsidized rent for Vendor 1
Subsidized rent for Vendor 2 $ 50,000 $ 50,000
Updated Law Enforcement Services Contract for Monte Sereno $ 289,805 $ 289,805 New Revenue $ 859,000 $ 3,084,874 $ 3,943,874
Charge for License Agreements $ 5,000 $ 5,000
Charge for Parklets $ 100,000 $ 100,000
Contract Adjustment – Charging Stations Vendor 1 $ 28,000 $ 28,000 Contract Adjustment – Charging Stations Vendor 2 $ 22,000 $ 22,000 Contract HR Services for other entity $ 14,000 $ 14,000 Encroachment Fee from Garbage Haulers $ 688,000 $ 688,000 New Fee – Downtown Paid Parking (Option 3B) $ 1,984,874 $ 1,984,874 New Fee – Oak Meadow Park Parking $ 90,000 $ 90,000
Reduce Current Lessee Leased Premises and Rent to Another Entity $ 12,000 $ 12,000 Sales Tax or Parcel Tax $ 1,000,000 $ 1,000,000
Grand Total $ 1,590,313 $ 3,309,874 $ 4,900,187
[1] Note: Savings are estimates and the list is intended to provide examples for consideration. Some options are already included in the preliminary draft budget.

As the Town Council discusses what direction to provide staff, additional revenue is a bucket that can reduce the structural components of the deficit.

ITEM NO. 17.

PAGE 15 OF 15
SUBJECT: Pre-Budget Discussion and Direction
DATE: April 22, 2025
ALTERNATIVES:

Not Applicable. Agenda item is a discussion to provide directions to staff.

COORDINATION:

Deficit Reduction and revenue items were coordinated with all department heads, Town Manager, and Town Attorney.

ENVIRONMENTAL ASSESSMENT:

This action does not constitute a project as defined under the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15378(b), which states that a project does not include continuing administrative or maintenance activities, general policy and procedure making, or other governmental fiscal activities which do not involve a commitment to any specific project. The recommended action involves only discussion, informational updates, administrative direction, or preliminary policy review, without committing the City to a specific activity or physical change to the environment.

Attachments:

1. Five-Year Financial Revenue Assumptions

2. Five-Year Financial Expenditure Assumptions

ITEM NO. 17.
1 ATTACHMENT 1

FORECAST ASSUMPTIONS

REVENUE BASELINE AND PROJECTION FACTORS
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
Including
30% to
Reserve
$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%

FORECAST ASSUMPTIONS

ITEM NO. 17.
2 ATTACHMENT 1

REVENUE BASELINE AND PROJECTION FACTORS
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.
1 ATTACHMENT 2

FORECAST ASSUMPTIONS

EXPENDITURE BASELINE AND PROJECTION FACTORS
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.
2 ATTACHMENT 2

FORECAST ASSUMPTIONS
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.

Budget Balancing Discussion
2025-26 Fiscal Year
Town Council Study Session
April 22, 2025
Item 1
ATTACHMENT 3

ITEM NO. 17.

AGENDA and RECOMMENDATION

1. Five-Year Financial Projection

2. Expenditure Reduction Options

3. Revenue Options

4. Next Steps
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

ITEM NO. 17.

Budget Development Process
• Budget Guidelines and Timeline
• Revenue Projections
• Personnel Costs
• Setting Strategic Priorities
• Operating and Capital Expenditures
• Budget Balancing and Deficit Reduction
• Public Input
• Budget Approval Page 666
ITEM NO. 17.
2025-26 Budget Development
• Revenue is projected conservatively using Avenu and HdL for our two top revenue sources
• Expenditures include conservative calculations with input from departments and finance.
• Personnel expenditures include an assumed 4.6% vacancy factor.
• Capital budget switches to Tier system focused on staff capacity and appropriating only Tier 1 projects. Page 667 ITEM NO. 17.
2025-26 Budget – Vacancy Factor
• Personnel expenditures include an assumed 4.6% vacancy factor ($1.9 million for fiscal year).
• History indicates that we will continue to maintain vacancies, but internal information from departments indicate filling of positions.
• Differentials in starting steps may help
• Best practice may support calculating a vacancy factor for forecasting, but expenditure controls are necessary

ITEM NO. 17.

Five-Year Financial Projection
• Projected structural deficit of $3.7M in FY 2025-26
• Deficit driven by general cost escalation, including salaries, pension obligations, and cost of supplies
• Forecast period: FY 2025-26 through FY 2030-31
• Revenue not keeping pace with rising expenditures

ITEM NO. 17.

Revenue Category 2023-24
Actual
2024-25
Estimated
2025-26
Proposed
2026-27
Forecast
2027-28
Forecast
2028-29
Forecast
2029-30
Forecast
2030-31
Forecast
Total Operating
Revenue (OR) and
Transfer In

58.5 58.3 $58.1 $58.8 $60.4 $62.0 $62.4 $64.5
OR with Transfers
and use of
reserves

61.9 60.8 $58.1 $58.8 $60.4 $62.0 $62.4 $64.5
Total Expenditures 53.6 57.4 $61.4 $63.4 $65.7 $68.1 $68.3 $69.7 Exp with Transfers
and reserve
allocations

57.7 60.8 $61.8 $63.8 $66.1 $68.5 $68.7 $70.1
Net Revenue 4.2 0.0 ($3.7) ($5.0) ($5.7) ($6.5) ($6.3) ($5.6)

ITEM NO. 17.

ITEM NO. 17.
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.

Moving Forward – Internal Controls
• Year 1 – Balancing Reserve Fund Use with Operational
Reductions
• Leaning on reserves to avoid unnecessary reductions to continue assessment
• Year 1 – Capital Improvement Planning
• Tiered structure focuses on staff capacity and improving prioritization • Additional Controls on Expenditures – internal by
management
• Position Control – Robust evaluation process balancing operations, financial condition, priorities, and service levels
• Expenditure Control – Vehicle replacement, department budget control, and additional mechanisms Page 673
ITEM NO. 17.

Moving Forward – Note of Caution
• The tiered options were created to assist the executive team in assessing general impact with emphasis on protecting core services and permanent staffing.
• Facilitate discussion with Town Council based on the general tenor of the impacts but to protect against alarm for actions which may not be implemented.
• Until final proposed budget, no reduction, revenue increase, or other measure is a reality.
• Numbers are estimates
• Current proposed budget built with minimal reductions and could balance budget on reserves.
• Provides additional time to assess financial condition, conduct five-year external projection, and to determine extent measures implemented address deficit in 2025-26.

ITEM NO. 17.

Moving Forward – Experience with Deficits
• Resistance – any reduction or revenue increase can lead to significant opposition and public pressure. “We like adding but find it challenge to then reduce or eliminate.” • Balancing Essential vs. Non-Essential Services – there can be difficulty in distinguishing what is essential with valued by less critical services. • Levels of Service – activity may be essential, but there can be difficulty separating service with service level. • Uncertainty – we want more information or more precision where such is not available. • Long vs Short Term – some cuts help in the short term but have long-term implications.

ITEM NO. 17.

How do we move forward?
• Expenditure and Deficit Reductions – reducing the annual spend for the Town.
• Revenue Increases – identifying and implementing measures increases available revenue to support Town activities. • Gaining efficiencies – optimizing or rethinking service delivery. • Innovation and Economic Development – looking to
opportunities to enhance drivers of primary revenue or
provision of services.

ITEM NO. 17.

Expenditure and Deficit Reduction Options
• Department Level – Each executive team member considered reduction options for their respective departments.
• Executive Team – The team met to combine the reductions into four tiers that progressively increase the types of reductions and impacts.
• Team presented a variety of revenue options to offset the need for service impacts.

ITEM NO. 17.

Tier 1: Efficiency & Strategic Alignment
• Estimated Savings: $500,000 ($430,000 is ongoing)
• Focus: Protect existing full-time staffing levels; reductions limited to unfilled or retiree-filled part-time positions.
• Some of the items already implement in the budget, so proposed budget would be reduced by $300,000 in Tier 1.
• Initial round was reductions proposed by departments expecting them to be implemented but still providing core services. • Example – Removing $17,500 in commission budgets and providing bulk Town giveaways when needed for events.

ITEM NO. 17.

Tier 2: Initial Service Reductions
• Estimated Savings: $1,000,000 ($500,000 is ongoing)
• Focus: Deeper reductions; begins to affect strategic priorities funding
• Unhoused Services:
• Reduces portable restroom and some Hotel Program funding (~$26,000). • Hotel Program still operational with adequate support for typical winters; tighter during harsh weather.
• Emergency Management:
• Reduces part-time emergency coordinator hours (~$18,000); limits program expansion efforts.
• Defunds half of the one-time emergency management allocation

ITEM NO. 17.

Tier 2: Initial Service Reductions
• Legal Services: Reduction (~$110,000) may delay Town Attorney responses by 2-4 weeks.
• Downtown Maintenance: Eliminates power washing and decorative tree lighting (~$100,000).
• Civic Features: Turns off Civic Center and Plaza Park fountains (~$20,000).
• Park Amenities: Removes doggie bags (~$10,000).
• Library Services: Reduces multimedia offerings, e-resources, subscriptions, and new materials (~$84,000).
• Utility Subsidies: Decreased Town contributions toward third-party utility payments.

• Staff Development: Additional cuts to training and memberships.

ITEM NO. 17.

Tier 3: Significant Service & PT Staffing Impacts
Estimated Additional Savings: $1.1 Million
• Ongoing Savings: $1,000,000
• One-time Savings: $100,000
Overview:
• Noticeable reductions in service delivery
• Includes part-time staffing reductions and vacant position eliminations
• Adjustments impacting strategic priorities and community services

ITEM NO. 17.

Tier 3: Significant Service & PT Staffing Impacts
Reorganize Community Police Complaints Process
• Reassign from Town Attorney’s Office to Town Manager’s Office (~60,000)
• Allows Town Attorney to prioritize essential legal functions • Leverages Town Manager’s public safety expertise
Transportation Management
• Reimagine and potentially contract out transportation demand management (~$200,0000)
• Potential impacts:
• Reduced service levels
• Potential reduction in regional partnerships (VTA, MTC) • Potential loss of grant funding opportunities Page 682 ITEM NO. 17.

Tier 3: Significant Service & PT Staffing Impacts
Emergency Management
• Additional reduction of part-time coordinator hours (~$18,000) • Limits strategic initiatives; minimal support maintained Volunteer Programs
• Eliminate support funding (~$75,000) for:
• Volunteers in Policing, Police Explorer Program, Disaster Assistance Response Team (DART), Community Emergency Response Team (CERT), Community Police Academy
• Potential impacts:
• Reduced emergency response readiness

• Decreased community and youth engagement
ITEM NO. 17.

Tier 3: Significant Service & PT Staffing Impacts
Unhoused Initiatives
• Remove remaining support (~34,000) for:
• Hotel Program
• Food pantry and shower programs
Visitor & Marketing Services
• Reevaluation and restructuring of visitor center and destination marketing contracts
• Focus on most impactful deliverables for
businesses/community

ITEM NO. 17.

Tier 3: Significant Service & PT Staffing Impacts
Additional Part-Time Staffing Reductions
• Significant part-time hour cuts across multiple services (~$300,000)
• Potential impacts include delayed service delivery and reduced availability:
• Library programs, community events, and auxiliary services Library Collection
• Additional reductions in new media and books (~$27,000, 30% total reduction including Tiers 2 & 3)
• Increased wait times and decreased collection diversity

ITEM NO. 17.

Tier 3: Significant Service & PT Staffing Impacts
Tree Management
• 50% Reduction (~$100,0000)
• Likely delays in tree maintenance; potential unmet public service requests
Community Events
• Restructure 4th of July event scheduling (not always on July 4) (~$13,000)
Leadership Los Gatos
• Program to run every other year (~$5,000 annually, or $10,000 every other year) Page 686
ITEM NO. 17.

Tier 3: Significant Service & PT Staffing Impacts
Staff Development & Technology
• Further cuts to training, memberships, and delays in
technology replacements
• Potential impacts:
• Reduced staff capacity to remain updated in professional fields • Longer-term impacts on service quality and efficiency

ITEM NO. 17.

Tier 4: Major Impacts on Core Services & Staffing
Estimated Additional Savings: $2.4 Million Annually
Overview:
• Most significant impacts among all tiers
• Direct effects on core community services
• Substantial staffing implications; specifics to follow bargaining discussions

ITEM NO. 17.

Tier 4: Major Impacts on Core Services & Staffing
Library and Public Counter Hours
• Reduction of Library and public counter operating hours • Direct impact on public access, community resource availability, and in-person counter access
Community Grant Funding
• Reduced financial support to community organizations
Leadership Los Gatos Program
• Remove program (~$20,000)
• Loss of leadership training and community engagement opportunities

ITEM NO. 17.

Tier 4: Major Impacts on Core Services & Staffing
Support for Events
• Remove PD and PPW overtime for Town events, Holiday Parade, and Halloween closures (~$130,000)
• Remove road closures for Parade and Halloween (~$54,000) Public Safety & Traffic
• Crossing Guard Program: Reduction or elimination (~$50,000 savings) • ALPR Cameras: Reduced funding or program elimination (~$50,000 savings)
Public Meetings
• Reduced number of cable-broadcasted Town Council and Planning Commission meetings
• Potential reduction in community transparency and engagement opportunities

ITEM NO. 17.

Revenue Options
• Revenue Audits - $150,000 short-term
• Audits of business license, hotel TOT, Property Tax with recovery services
• Reducing Subsidies - $581,313 short-term ($225,000 longer) • Implement or increase fees for use of various facilities and activities. • Field usage, application fees, service and facility rentals, event fees, meeting room rental
• Reduce subsidized rent for vendors leasing space from Town • Updating Law Enforcement Agreement with Monte Sereno (complete) • Cost recovery for DUI and special enforcement operations • Residential alarm registration and false alarm fee implementation

ITEM NO. 17.

Revenue Options
• New Revenues - $859,000 short-term ($3,943,874 longer) • Vehicle charging stations contract adjustments
• Charge for parklets, license agreements, encroachment fee for garbage haulers
• New fees for paid parking – Oak Meadows and/or downtown • Sales or Parcel tax
• Contract to provide services to other governmental agencies

ITEM NO. 17.

Efficiencies and Innovation
• Internal Operations – review key activities and services to identify opportunities to improve cost efficiency.
• Contracting – consider re-bidding services to obtain better terms where applicable.
• Driving Economic Development – invest in activities which can yield increase in revenue drivers: sales tax, TOT, etc. • Realignment – deeply assess core services desired by the public and align services with available ongoing revenue. Page 693 ITEM NO. 17.

Council Input
• Discussion – discuss the information presented on this agenda. • Approach to Final Budget – advise on what the Finance Commission should review and what staff should consider in developing the final budget.
• Discuss Barriers to Decision Making – identify areas Council desires more information or action by staff to facilitate smooth approval of the final budget.

ITEM NO. 17.
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

DESK ITEM
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
REMARKS:

Attachment 3 contains Public Comment received before 11:00 a.m., Tuesday, April 22, 2025.

Attachments (previously distributed with the staff report):

1. Five-Year Financial Revenue Assumptions

2. Five-Year Financial Expenditure Assumptions
Attachment (distributed with this Desk Item):

3. Public Comment

ITEM NO. 17.

From: Phil Koen
To: Chris Constantin; Gitta Ungvari; Wendy Wood
Cc: Linda Reiners; Matthew Hudes
Subject: GFOA Best Practices - Effective Budgeting of Salaries and Wages - Special Study Session Date: Monday, April 21, 2025 3:48:40 PM
Attachments: www.gfoa.org.pdf
[EXTERNAL SENDER]
Chris,
Since the Staff memo mentions GFOA Best Practices, I have taken the liberty to attach the GFOA Best Practice on Effective Budgeting of Salaries and Wages. This was the best practice the Finance Commission relied upon we made the recommendation to create a vacancy factor of 4.6% when budgeting total salary and wages. I was part of that decision and supported the vacancy factor.

The 4.6% vacancy factor was determined based on a 5 year review of historical vacancy trend and actual expenses vs budget for the Town’s salary and wages. In FY 24, the adopted budget called for total wages of $23.2m with an offsetting $1.7m in a vacancy factor, resulting in $22.5m net budget salary expense. The FY 24 actual salary expense was $21.9m, which was less than the $22.5m adopted net budget.

The vacancy factor in FY 24 achieved what GFOA recommends, namely not budgeting for all positions since not all positions are filled for the entire year. To ignore the historical vacancy factor will certainly result in an unnecessary budget cushion for salary and wages at a time when financial resources are scarce. This leads to a misallocation of the Town’s capital and potentially other critical needs going unfunded.

In closing, in looking over the past 10 years of budget vs actual results for salary and wages expense, there is absolutely no evidence that by applying a prudent vacancy factor to the annual budget for salary and wages the Town is increasing the risk the Town could fill vacant positions. Rather it is just the opposite - it is applying prudent budgeting procedures recommended by GFOA by acknowledging that not every budgeted position is filled for the entire year and thus avoiding misallocating capital and enabling other critical needs to be appropriately budgeted.

Please note these are my personal thoughts as a member of the Finance Commission and I am not representing the entireFinance Commission.

Thank you,
Phil Koen
Member of the Finance Commission
ATTACHMENT 3 Page 696
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PREPARED BY: Nicolle Burnham
Parks and Public Works Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 04/22/2025
ITEM NO: 2
DATE: April 17, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive the Proposed Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction
RECOMMENDATION:

Staff recommends that the Town Council receive the proposed Capital Improvement Program (CIP) Budget and provide direction to the Finance Commission for their review of the proposed plan.

STRATEGIC PRIORITIES:

This item supports the Core Goals of:
• Good Governance and Fiscal Stability.

This item supports the Strategic Priority of:
• Ensure prudent financial management to result in structurally balanced five-year forecasts and fully funded five-year Capital Improvement Plan…Define and implement cohesive deferred capital improvement programs for Town facilities and lifecycle assets.

FISCAL IMPACT:

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.

ATTACHMENT 4 Page 710
ITEM NO. 17.

PAGE 2 OF 10
SUBJECT: Receive the Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction for Finance Commission Review DATE: April 17, 2025
The proposed CIP consists primarily of carry-forward projects from the prior year ($16.0 million) as part of the multi-year programming of $40.1 million. Approximately $36.8 million (91.8%) is allocated to the streets, sidewalks, and curbs category; $1.4 million (3.4%) is allocated to parks and trails projects; and $1.9 million (4.8%) is allocated to public facility projects.

BACKGROUND:

Introduction
Town staff develops a five-year CIP each year for review and adoption by Town Council each year. 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.

Town-owned assets with improvements funded through the CIP include 17 park and open space areas that total 223 acres, nine miles of trail, 113 miles of roadways (236 lane miles), 576,000 linear feet of sidewalks, 31 traffic signals, 2,100 streetlights, 12 public buildings totaling 139,373 square feet, and 23 surface parking lots (including lots in parks), and one underground parking structure. These major assets are supported by ancillary assets like restroom buildings (five total), storm drainage systems, retaining walls, and traffic signs.

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.

Capital Projects are allocated by Programs and Project Types as noted in Table 1.

Table 1. List of CIP Programs and Project Types
Program Name Project Type
Streets Street Reconstruction and Resurfacing
Street Repairs, Maintenance and Safety
Street Improvements
Bridges
Parks and Trails Parks
Trails
Public Facilities Town Infrastructure
Equipment

ITEM NO. 17.

PAGE 3 OF 10
SUBJECT: Receive the Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction for Finance Commission Review DATE: April 17, 2025
In preparing the CIP, consideration is given to the amount of funding available and/or anticipated from a variety of various funding sources – Measure G, Construction Impact Fees, Gas Tax, Utility Undergrounding Fees, Refuse Vehicle Impact Fees, Measure B, Traffic Mitigation Fees, Storm Drainage Fees, Grant Funds and, when available, the General Fund Special/Capital Projects Reserve. The availability of funding from these sources varies from year to year. Many of these have specific dedicated uses and so must be applied to specific projects (e.g., roadway resurfacing or storm drainage improvements).

Projects to be Closed by End of FY 2024-25
The following 14 projects are slated to be completed or consolidated, and closed before the end of the 2024-25 fiscal year:
• Utility Undergrounding Improvements (813-0225)
• Traffic Signal Modernization (813-0227)
• Winchester Class IV Bikeway (813-0240)
• Overlook Road Tree Replacement (813-0244)
• Retaining Wall Repairs (815-9930)
• 333 University Inlet Capacity Improvements (816-0424) • Parking Lot 4 Repair/Waterproofing (817-0708)
• TMO Roof Repairs (821-2121)
• Building Replacement at Corporation Yard (821-2302)
• Engineering Counter Modification (821-2310)
• ADA Upgrade for Public Restrooms - Adult Recreation Building (821-2601) • Charter Oaks Trail Improvement (832-4503)
• Trailhead Connector (832-4505)
• Town-Wide Document Imaging Project (841-6003)
The remaining funds in each project were sent to the respective funding source’s fund balance.

Changes to the CIP Funding and Document Format for FY 2025-26 through 2029-30 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.

ITEM NO. 17.

PAGE 4 OF 10
SUBJECT: Receive the Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction for Finance Commission Review DATE: April 17, 2025
As noted above, 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 1). 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 FY 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 presented in Attachment 2 of this staff report and are included as an appendix to the CIP document. These are called Tier 3 projects, and no funding or staff have been allocated to these at this time.

Within the document, pages for project have been updated to reflect the Tier 1 or Tier 2 status and each project has been identified by its Core Goal of the Town Council.

DISCUSSION:

As in prior budgets, CIP projects represent either ongoing work that is funded annually, or onetime projects that achieve specific goals of the Town.

One-Time Capital Projects
The current capital plan includes 47 one-time projects, 26 of which are classified as Tier 1 for priority in FY 2025-26. While these one-time projects may span numerous years, the project is still considered one-time in that it has a specific starting and ending point. Table 2 is the Tier 1, one-time projects for this CIP. A complete list of Tier 1 and Tier 2 projects is in Attachment 1.

ITEM NO. 17.

PAGE 5 OF 10
SUBJECT: Receive the Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction for Finance Commission Review DATE: April 17, 2025
Table 2. One-Time Tier 1 Capital Improvement Projects Funded in the FY 2025-26 CIP Project
Number
Program Project Name Strategic Priority
811-0008 Street Safety &
Maintenance
Shannon Road Repair Public Safety / Quality
Public Infrastructure
811-0010 Street Safety &
Maintenance
Blossom Hill Road – Union to Camden Public Safety / Quality Public Infrastructure
812-0133 Street Safety &
Maintenance
VMT Mitigation Program Fiscal Stability
813-0218 Street Improvement Shannon Road Pedestrian and Bikeway Improvements
Quality Public
Infrastructure
813-0242 Street Improvement Parking Program Implementation Quality Public Infrastructure
816-0418 Street Improvement Vasona Oaks Drainage Failure Repair Public Safety 816-0421 Street Improvement Loma Street Drainage Quality Public Infrastructure
816-0423 Street Improvement 709 University Avenue Drainage System Replacement
Quality Public
Infrastructure
816-0425 Street Improvement Storm Drainage Mapping Good Governance 817-0705 Street Improvement Downtown Parking Lots Seal Coat & Restriping
Quality Public
Infrastructure
818-0803 Bridge Highway 17 Bicycle & Pedestrian Bridge - Design
Public Safety / Quality
Public Infrastructure
831-4007 Parks Oak Meadow Bandstand Area Improvements Quality Public Infrastructure
831-4611 Parks Sport Court Resurfacing Quality Public
Infrastructure
821-2009 Town Infrastructure Public Art Gateway Project Civic Engagement 821-2012 Town Infrastructure Emergency Preparedness Public Safety 821-2117 Town Infrastructure Civic Center HR Offices Quality Public Infrastructure
821-2120 Town Infrastructure Civic Center Plumbing Repair and HVAC Repairs
Quality Public
Infrastructure
821-2311 Town Infrastructure Fleet Service Outdoor Work Area (Design Phase)
Quality Public
Infrastructure
821-2404 Town Infrastructure POB Space Study Public Safety / Quality Public Infrastructure
821-2505 Town Infrastructure Battery Power Supply Library Community Character 841-6101 Equipment Enterprise Resource Planning (ERP) Upgrade Good Governance / Fiscal Stability
841-6103 Equipment EOC Communication Upgrade Public Safety 841-6104 Equipment IT Disaster Recovery Improvements Public Safety

ITEM NO. 17.

PAGE 6 OF 10
SUBJECT: Receive the Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction for Finance Commission Review DATE: April 17, 2025
Table 2. One-Time Tier 1 Capital Improvement Projects Funded in the FY 2025-26 CIP Project
Number
Program Project Name Strategic Priority
841-6105 Equipment IT Disaster Resiliency Project Public Safety 821-2312 Equipment Auto Gate Replacements – PPW and POB Public Safety 821-2313 Equipment EV Chargers at 41 Miles Avenue Community Character / Legal Requirement
Tier 2 Projects
As discussed above, certain projects presented in past CIP documents were moved to Tier 2 status in recognition of not having adequate staff resources to deliver the project, not having adequate funding, or both. In addition, certain new projects were added with Tier 2 status. The new projects fall into two categories: 1) work that will support the development of a cohesive deferred capital improvement plan for Town facilities and lifecycle assets (Fiscal Stability Strategic Priority); and 2) work required to meet a regulatory requirement or mitigate a risk associated with lack of regulatory compliance (e.g., Village Lane Trash Enclosures). The following new projects were added to the CIP as Tier 2 and detail sheets describing the proposed work are included in the document:
• Traffic / Travel Demand Model
• Village Lane Trash Enclosure
• Parks and Trails Master Plan
• Condition Assessment of Civic Center
In the CIP document funding for all Tier 2 projects is shown in Year 5 (FY 2029-30). Projects will be released as staff resources and funding permit. Staff has divided the Tier 2 projects into four “classes” to provide an indication of what order the work may be released (See Attachment 1).

In general, projects that pertain to public safety, fiscal stability, or that have regulatory or grant implications were identified in higher classes than those related to civic engagement or quality infrastructure.

Ongoing and Annually Funded Projects
Each of the ongoing projects noted in Table 3 support various identified strategic initiatives of the Town, such as quality public infrastructure, safety for all modes of travel (motorist, cyclist, and pedestrian), and playground safety. Staff is recommending that these project categories continue to be funded annually.

ITEM NO. 17.

PAGE 7 OF 10
SUBJECT: Receive the Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction for Finance Commission Review DATE: April 17, 2025
The only change to this list from prior years pertains to the Parks Playground Fibar Project, which funds the replacement of engineered safety surface material (which appears to look like wood chips when installed at playgrounds). In prior budgets this was funded with $20,000 every other year, but the work must be performed annually at a cost of approximately $19,000. With this proposed CIP budget staff recommends converting this to annual funding of $15,000 per year, leaving this project slightly underfunded. Staff recommends that in future years consideration be given to converting this expense to the Operating Budget and closing the associated capital project.

Table 3. Ongoing and Annually Funded Projects in the FY 2025-26 CIP Project
Number
Program Project Name FY2025-26
Tier Status
Strategic Priority
811-9901 Street
Reconstruction and
Resurfacing
Street Repair & Resurfacing 1 Public Safety / Quality
Public Infrastructure
811-9902 Street Safety &
Maintenance
Annual Street Restriping 1 Public Safety / Quality
Public Infrastructure
811-9904 Street Safety &
Maintenance
Unanticipated Repairs –
Annual
1 Quality Public
Infrastructure
812-0130 Street Safety &
Maintenance
Roadside Fire Fuel Reduction 1 Public Safety
812-0134 Street Safety &
Maintenance
Measure B Education &
Encouragement
1 Public Safety
813-9921 Street
Improvement
Curb, Gutter & Sidewalk
Maintenance
1 Public Safety
816-0414 Street
Improvement
Stormwater System –
Pollution Prevention
Compliance
1 Community Character
/ Good Governance
816-0420 Street
Improvement
Annual Storm Drain
Improvement Project
1 Quality Public
Infrastructure
831-4605 Parks Parks Playground Fibar
Project
1 Public Safety
832-4508 Trails Vegetation Management –
Town-wide
1 Public Safety
821-2013 Town
Infrastructure
Annual ADA Compliance
Work
1 Quality Public
Infrastructure
Note that with this proposed budget the Town Beautification Project, which funds the Forbes Mill Pedestrian Bridge Art project has been moved to Tier 2 status.

ITEM NO. 17.

PAGE 8 OF 10
SUBJECT: Receive the Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction for Finance Commission Review DATE: April 17, 2025
Project Specific Highlights
With this proposed CIP staff recommended the following changes to projects:
• Storm Drainage Mapping (816-0425). Past funding for this Tier 1 project was not sufficient to map all storm drainage assets in the Town. Additional funding was added from the Storm Drainage funds and will allow for completion of the project. • Shannon Road Repair (811-0008). Construction bidding of this Tier 1 project is scheduled for late April and staff plans to award the construction contract in June. Staff anticipates that construction bids may come in higher than the engineer’s estimate and proposed to reallocate all of the Retaining Wall Repair (815-9930) funds to this project. Additional required funding will be brought forward after construction bids are opened. • Roadside Fire Fuel Reduction (812-0130) and Vegetation Management – Townwide (832-4508). Both of these Tier 1 projects continue to have $100,000 per year allocated to support ongoing wildfire management.
• Sport Court Resurfacing (831-4611). This Tier 1 project has been redefined to fund resurfacing and restriping of the tennis and pickleball court at LaRinconada Court, and to add sound barrier protection at this court.
• Vasona Oaks Drainage Improvement (816-0418). This is a new Tier 1 project funded through the Storm Basin funds to correct the failure of a culvert under University Avenue and through Vasona Park.
• IT Disaster Resiliency (841-6105). This new Tier 1 project will support necessary and vital upgrades to provide system redundancy.
• Auto Gate Replacements POB and PPW (821-2312). The new Tier 1 project will provide funding to replace the automobile access gates at the Police Operations Building and the Parks and Town Corporation Yard at 41 Miles Avenue. • EV Chargers at 41 Miles Avenue (821-2313). This Tier 1 project was created in March 2025 when the Town accepted a grant from Silicon Valley Clean Energy. Installation of these chargers is required to meet the regulatory mandate for certain vehicles to be zero emission.

Deferred Capital Improvements and Lifecyle Costs
Consistent with the Town Council Strategic Priority of Fiscal Stability, staff has been working to develop “a cohesive, deferred capital improvement program for Town Facilities and lifecycle assets.” Table 4 is a summary table of known needs as it was presented to Town Council during a CIP study session on November 19, 2024.

Staff continues to build on this past work while simultaneously delivering on projects within the deferred list. For example, the Vasona Drainage project was included in the storm drainage plan

ITEM NO. 17.

PAGE 9 OF 10
SUBJECT: Receive the Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction for Finance Commission Review DATE: April 17, 2025
completed in 2019 and its cost is still reflected in Table 4; however, due to imminent failure of the system, the work will be completed in 2025.

Staff has also proposed certain projects that will help develop a more cohesive CIP. These include the Traffic / Travel Demand Model (813-0245), Parks and Trails Master Plan (841-4612) and a Condition Assessment of Civic Center (821-2123). Each of these will need to be completed to provide a holistic assessment of Town assets and complete robust lifecycle and capital improvement planning. These are proposed as Tier 2 projects.

Table 4. Summary of Current Known Capital and Maintenance Needs Items / Need Current Opinion of
Potential Costs (2024 $)
Town Owned Buildings – Maintenance $ 20,278,913
Town Owned Buildings – Capital Needs $ 1,490,000
Parks1 $ 28,189,000
Storm Drainage $ 23,126,500
Streets and Roads $ 166,037,000
IT Needs $ 310,000
TOTAL $239,431,413
Notes:

1. Cost does not include restoration plans for Ross Creek and Los Gatos Creek as recommended in General Plan 2040.

CONCLUSION:

Staff is pleased to present this CIP for consideration by the Town Council. The proposed plan seeks to balance the important and ever-changing needs of the Town with the limitations presented by funding and staffing levels.

COORDINATION:

This CIP has been coordinated with the Town Manager, Finance Director, and the Town Attorney.

ENVIRONMENTAL ASSESSMENT:

This action does not constitute a "project" under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(5) because it involves an administrative activity of government that will not result in direct or indirect physical changes in the environment.

ITEM NO. 17.

PAGE 10 OF 10
SUBJECT: Receive the Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction for Finance Commission Review DATE: April 17, 2025
Attachments:

1. Tier 1 / Tier 2 Projects

2. Tier 3 Projects

ITEM NO. 17.

Fiscal Year 25/26 Capital Improvement Projects
Project Number Program Project Name Strategic Priority
Annual / One‐
Time
FY2025/26
Tier Status Tier 2 Priority
811‐9901 Street Reconstruction and Resurfacing Street Repair & Resurfacing Public Safety / Quality Public Infrastructure Annual 1 811‐9902 Street Safety & Maintenance Annual Street Restriping Public Safety / Quality Public Infrastructure Annual 1811‐9904 Street Safety & Maintenance Unanticipated Repairs – Annual Quality Public Infrastructure Annual 1 811‐0008 Street Safety & Maintenance Shannon Road Repair Public Safety / Quality Public Infrastructure One‐Time 1 811‐0010 Street Safety & Maintenance Blossom Hill Road – Union to Camden Public Safety / Quality Public Infrastructure One‐Time 1 812‐0130 Street Safety & Maintenance Roadside Fire Fuel Reduction Public Safety Annual 1 812‐0133 Street Safety & Maintenance VMT Mitigation Program Fiscal Stability One‐Time 1 812‐0134 Street Safety & Maintenance Measure B Education & Encouragement Public Safety Annual 1 813‐9921 Street Improvement Curb, Gutter & Sidewalk Maintenance Public Safety Annual 1 813‐0218 Street Improvement Shannon Road Pedestrian and Bikeway Improvements Quality Public Infrastructure One‐Time 1 813‐0242 Street Improvement Parking Program Implementation Quality Public Infrastructure One‐Time 1 816‐0414 Street Improvement Stormwater System – Pollution Prevention Compliance Community Character / Good Governance Annual 1816‐0418 Street Improvement Vasona Oaks Drainage Failure Repair Public Safety One‐Time 1 816‐0420 Street Improvement Annual Storm Drain Improvement Project Quality Public Infrastructure Annual 1 816‐0421 Street Improvement Loma Street Drainage Quality Public Infrastructure One‐Time 1 816‐0423 Street Improvement 709 University Avenue Drainage System Replacement Quality Public Infrastructure One‐Time 1 816‐0425 Street Improvement Storm Drainage Mapping Good Governance One‐Time 1 817‐0705 Street Improvement Downtown Parking Lots Seal Coat & Restriping Quality Public Infrastructure One‐Time 1 818‐0803 Bridge Highway 17 Bicycle & Pedestrian Bridge ‐ Design Public Safety / Quality Public Infrastructure One‐Time 1 831‐4007 Parks Oak Meadow Bandstand Area Improvements Quality Public Infrastructure One‐Time 1 831‐4605 Parks Parks Playground Fibar Project Public Safety Annual 1831‐4611 Parks Sport Court Resurfacing Quality Public Infrastructure One‐Time 1 832‐4508 Trails Vegetation Management – Town‐wide Public Safety Annual 1 821‐2009 Town Infrastructure Public Art Gateway Project Civic Engagement One‐Time 1 821‐2012 Town Infrastructure Emergency Preparedness Public Safety One‐Time 1 821‐2013 Town Infrastructure Annual ADA Compliance Work Quality Public Infrastructure Annual 1821‐2117 Town Infrastructure Civic Center HR Offices Quality Public Infrastructure One‐Time 1 821‐2120 Town Infrastructure Civic Center Plumbing Repair and HVAC Repairs Quality Public Infrastructure One‐Time 1 821‐2311 Town Infrastructure Fleet Service Outdoor Work Area (Design Phase) Quality Public Infrastructure One‐Time 1 821‐2404 Town Infrastructure POB Space Study Public Safety / Quality Public Infrastructure One‐Time 1 821‐2505 Town Infrastructure Battery Power Supply Library Community Character One‐Time 1821‐2312 Town Infrastructure Auto Gate Replacements – PPW and POB Public Safety One‐Time 1 821‐2313 Town Infrastructure EV Chargers at 41 Miles Avenue Community Character / Legal Requirement One‐Time 1 841‐6101 Equipment Enterprise Resource Planning (ERP) Upgrade Good Governance / Fiscal Stability One‐Time 1 841‐6103 Equipment EOC Communication Upgrade Public Safety One‐Time 1 841‐6104 Equipment IT Disaster Recovery Improvements Public Safety One‐Time 1 841‐6105 Equipment IT Disaster Resiliency Project Public Safety One‐Time 1 April 17, 2025

ITEM NO. 17.

Fiscal Year 25/26 Capital Improvement Projects
Project Number Program Project Name Strategic Priority
Annual / One‐
Time
FY2025/26
Tier Status Tier 2 Priority
813‐0245 Street Improvement Traffic / Travel Demand Model Fiscal Stability / Quality Public Infrastructure One‐Time 2 1 813‐0246 Street Improvement Village Lane Trash Enclosure Community Character / Good Governance One‐Time 2 1 841‐4612 Parks Parks and Trails Master Plan Fiscal Stability / Quality Public Infrastructure One‐Time 2 1 832‐4510 Trails Lynn Ave Pedestrian Path Design Civic Engagement / Public Safety One‐Time 2 1 821‐2123 Town Infrastructure Condition Assessment of Civic Center Fiscal Stability / Quality Public Infrastructure One‐Time 2 1 821‐2504 Town Infrastructure Library Improvements Civic Engagement One‐Time 2 1 812‐0131 Street Safety & Maintenance East Main Street Crosswalk Improvements Quality Public Infrastructure One‐Time 2 2 812‐0135 Street Safety & Maintenance Town‐wide Speed Studies Good Governance One‐Time 2 2 813‐0241 Street Improvement Kennedy Sidewalk & Bike Lanes – LGB to Englewood Quality Public Infrastructure One‐Time 2 2 818‐0804 Bridge Timber Bridge Inspection Quality Public Infrastructure One‐Time 2 2 831‐4404 Parks Creekside Turf Replacement Quality Public Infrastructure One‐Time 2 2 832‐4504 Trails Open Space Trail Upgrades Public Safety / Civic Engagement One‐Time 2 2 813‐0235 Street Improvement
Downtown Streetscape Revitalization / Economic RecoveryEfforts (Montebello Bollards) Civic Engagement One‐Time 2 3 816‐0422 Street Improvement Harwood/Belridge Drainage Study Quality Public Infrastructure One‐Time 2 3 831‐4008 Parks Oak Meadow Park Plane Recoating Quality Public Infrastructure One‐Time 2 3 831‐4610 Parks Pinehurst Community Garden Civic Engagement One‐Time 2 3 821‐2002 Town Infrastructure Town Beautification Civic Engagement Annual 2 3821‐2122 Town Infrastructure Civic Center Monument Sign Community Character One‐Time 2 3 813‐0237 Street Improvement State Route 17 Corridor Congestion Relief Project Quality Public Infrastructure One‐Time 2 4 818‐0801 Bridge Quito Road ‐ Bridge Replacement Quality Public Infrastructure One‐Time 2 4 831‐4202 Parks Town Plaza Turf Repairs Community Character One‐Time 2 4 821‐2208 Town Infrastructure ARC Interim Community Center Community Character One‐Time 2 4 April 17, 2025

ITEM NO. 17.

Location/Building Project/System Type Project Name FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 TOTALS Civic Center Parking Lots/Sidewalks Replace exposed aggregate walkway $ 110,000 $ 110,000 Civic Center Parking Lots/Sidewalks Pavement maintenance / restriping $ 16,000 $ 16,000 Civic Center Building Envelope Replace sealant between plaza deck and police $ 30,000 $ 30,000 Civic Center Building Envelope Annual sealant maintenance $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 4,000 $ 20,000 Civic Center Building Envelope Plaza deck and fountain waterproofing 1,800,000$ $ 1,800,000 Civic Center Roof Systems Annual maintenance $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 2,500 $ 12,500 Civic Center Mechanical Systems
Replace terminal units and valves, piping, and abate asbestos insulation 1,680,000$ $ 1,680,000
Civic Center Mechanical Systems Replace police dispatch AHU $ 60,000 $ 60,000 Civic Center Mechanical Systems Replace chiller and cooling tower $ ‐ Civic Center Mechanical Systems Replace Building controls $ 225,000 $ 225,000 Civic Center Mechanical Systems Replace unit 2 in Council Chamber IT room $ 15,000 $ 15,000 Civic Center Mechanical Systems Insulate boiler room piping $ 7,500 $ 7,500 Civic Center Electrical Systems Replace original electrical equipment $ 475,000 $ 475,000 Civic Center Plumbing Systems Replace sanitary sewer line in police dispatch $ 160,000 $ 160,000 Civic Center Fire/Life Safety Systems Replace fire sprinker heads $ 10,000 $ 10,000 Civic Center Interiors Replace carpet $ 180,000 $ 180,000 Civic Center Interiors Paint Interior Walls $ 24,000 $ 24,000 Civic Center Interiors Replace interior door closers $ 96,000 $ 96,000 Civic Center Conveyance Systems Overhaul staff elevator in NUMU $ 160,000 $ 160,000 Civic Center Accessibility Issues DAC Accessibility Compliance $ 109,871 $ 109,871 $ 109,871 $ 109,871 $ 109,871 $ 1,208,582Adult Recreation Center Parking Lots/Sidewalks Parking lot reconstruction / correct slope / correct entrance $ 550,000 $ 550,000 Adult Recreation Center Building Envelope Paint exterior $ 65,000 $ 65,000Adult Recreation Center Building Envelope Replace single pane windows $ 220,000 $ 220,000 Adult Recreation Center Roof Systems Roof replacement $ ‐ Adult Recreation Center Roof Systems Roof Maintenance $ 5,000 $ 5,000 $ 10,000 Adult Recreation Center Mechanical Systems Replace AHU's in mechanical room $ ‐ Adult Recreation Center Mechanical Systems Replace roof mounted air handler $ ‐ Adult Recreation Center Mechanical Systems Replace kitchen exhaust fan $ ‐ Adult Recreation Center Electrical Systems Overhaul electrical system $ 200,000 $ 200,000 Adult Recreation Center Fire/Life Safety Systems Replace fire sprinkler monitoring system $ 25,000 $ 25,000 Adult Recreation Center Accessibility Issues DAC Accessibility Compliance $ 39,337 $ 39,337 $ 39,337 $ 39,337 $ 39,337 $ 432,711 Library Parking Lot/Sidewalks Parking lot maintenance $ 8,500 $ 8,500 Library Parking Lot/Sidewalks Bioswale maintenance $ 10,000 $ 10,000 Library Roof Systems Roof maintenance $ 5,000 $ 5,000
Library Mechanical systems Replace rooftop Unit RTU‐1 $ ‐ Library Mechanical systems Replace EF‐1 $ ‐
Tier 3 ‐ Town of Los Gatos Facility Needs Projection
April 9, 2025Page 1
ATTACHMENT 2

ITEM NO. 17.

Location/Building Project/System Type Project Name FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 TOTALS Tier 3 ‐ Town of Los Gatos Facility Needs Projection
Library Mechanical systems Replace boiler B‐1 $ ‐
Library Mechanical systems Replace VRV heat pump system HP‐1 $ ‐ Library Mechanical systems Replace fan powered terminal units $ ‐ Library Electrical Systems Replace Lutron Lighting Controls $ 400,000 $ 400,000 Library Electrical Systems Replace "saucer‐style" LED lights $ 18,000 $ 18,000 Library Electrical Systems Test and Certify Main Electric Panel $ 50,000 $ 50,000 Library Electrical Systems Replace PV Inverters $ 40,000 $ 40,000Library Fire/Life Safety Systems Replace/Upgrade fire alarm system $ ‐ Library Interiors Replace floor coverings (carpet) $ 60,000 $ 80,000 $ 140,000 Library Interiors Replace interior door closers $ ‐Library Accessibility Issues DAC Accessibility Compliance $ 19,059 $ 19,059 $ 19,059 $ 19,059 $ 19,059 $ 209,650 Library Conveyance Systems Elevators $ ‐
Youth Recreation Center Parking Lot/Sidewalks Parking lot maintenance $ 6,500 $ 6,500 Youth Recreation Center Building Envelope Paint exterior $ 15,000 $ 15,000 Youth Recreation Center Building Envelope Replace single pane windows $ ‐ Youth Recreation Center Mechanical Systems Replace 5‐ton split system and furnace $ 24,000 $ 24,000 Youth Recreation Center Mechanical Systems Replace 4‐ton split system and furnace $ ‐ Youth Recreation Center Plumbing System Replace 40‐Gal, 40‐MBH domestic water heater $ ‐ Youth Recreation Center Electrical Systems Overhaul electrical system $ ‐ Youth Recreation Center Interiors Test vinyl tile for asbestos and replace $ ‐ Youth Recreation Center Interiors Paint interiors $ 12,000 $ 12,000 Youth Recreation Center Accessibility Issues DAC Accessibility Compliance $ 17,539 $ 17,539 $ 17,539 $ 17,539 $ 17,539 $ 192,926 Police Operations Building Parking Lots/Sidewalks Parking lot maintenance $ 12,000 $ 12,000 Police Operations Building Parking Lots/Sidewalks Replace/Maintain electric gates $ 50,000 $ 2,000 $ 52,000 Police Operations Building Building Envelope Paint exterior $ 55,000 $ 55,000 Police Operations Building Building Envelope Repair expansion joint gap between original building and addition $ 55,000 $ 55,000 Police Operations Building Roof Systems Replace roof $ 510,000 $ 510,000 Police Operations Building Roof Systems Roof Maintenance $ 4,000 $ 4,000 Police Operations Building Mechanical Systems Replace packaged rooftop units $ 335,000 $ 335,000 Police Operations Building Mechanical Systems Replace two split systems $ 30,000 $ 30,000 Police Operations Building Electrical Systems Replace automatic transfer switch $ ‐ Police Operations Building Plumbing Systems Replace 120‐Gal, 300 MBH domestic water heater $ 35,000 $ 35,000 Police Operations Building Fire/Life Safety Systems Replace fire alarm control panel and initiation devices $ 20,000 $ 20,000 Police Operations Building Interiors Paint interior walls $ 18,000 $ 18,000 Police Operations Building Interiors Replace carpet/vinyl flooring $ 50,000 $ 50,000 Police Operations Building Accessibility Issues DAC Accessibility Compliance $ 9,078 $ 9,078 $ 9,078 $ 9,078 $ 9,078 $ 99,854 PPW ‐ Equipment Building Parking Lots/Sidewalks Mill and overlay parking lot $ 190,000 $ 190,000 PPW ‐ Equipment Building Building Envelope Paint exterior $ 20,000 $ 20,000 PPW ‐ Equipment Building Mechanical Systems Replace 1.5‐ton split system $ ‐ April 9, 2025

ITEM NO. 17.

Location/Building Project/System Type Project Name FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 TOTALS Tier 3 ‐ Town of Los Gatos Facility Needs Projection
PPW ‐ Equipment Building Mechanical Systems Replace 4‐ton packaged unit $ ‐PPW ‐ Equipment Building Mechanical Systems Replace suspended unit heaters $ ‐PPW ‐ Equipment Building Mechanical Systems Replace exhaust fans $ ‐ PPW ‐ Equipment Building Electrical Systems Replace exterior fused disconnect and panel board $ 10,000 $ 10,000 PPW ‐ Equipment Building Electrical Systems Replace automatic transfer switch $ ‐PPW ‐ Equipment Building Electrical Systems Allowance for replacing 60 KW emergency generator with 200 KW $ ‐ PPW ‐ Equipment Building Plumbing Systems Replace water heater $ 10,000 $ 10,000PPW ‐ Equipment Building Interiors Paint interiors $ 12,000 $ 12,000 PPW ‐ Equipment Building Interiors Replace vinyl tile and repaint floors $ ‐ PPW ‐ Equipment Building Accessibility Issues DAC Accessibility Compliance $ 8,732 $ 8,732 $ 8,732 $ 8,732 $ 8,732 $ 96,053 PPW ‐ Engineering Building Building Envelope Paint exterior $ 9,000 $ 9,000PPW ‐ Engineering Building Plumbing Systems Plumbing ‐ renovated 2022 $ 25,000 $ 25,000 PPW ‐ Engineering Building Interiors Paint interiors $ ‐PPW ‐ Engineering Building Accessibility Issues DAC Accessibility Compliance $ 4,790 $ 4,790 $ 4,790 $ 4,790 $ 4,790 $ 52,685 PPW ‐ Corp Yard White House Parking Lots/Sidewalks Maintenace $ 7,000 $ 7,000 PPW ‐ Corp Yard White House Mechanical Systems Replace upstairs HVAC system $ ‐ PPW ‐ Corp Yard White House Mechanical Systems Replace downstairs HVAC system $ ‐ PPW ‐ Corp Yard White House Electrical Systems Replace 200‐amp main electrical panel $ ‐ PPW ‐ Corp Yard White House Plumbing Systems Replace 40‐MBH, 30‐Gal domestic water heater $ 6,000 $ 6,000 PPW ‐ Corp Yard White House Interiors Paint interiors $ 15,000 $ 15,000 PPW ‐ Corp Yard White House Interiors Refinish wood floors and replace carpet $ 44,000 $ 44,000 PPW ‐ Corp Yard White House Accessibility Issues DAC Accessibility Compliance $ 21,612 $ 21,612 $ 21,612 $ 21,612 $ 21,612 $ 237,730 PPW ‐ Corp Yard Parking Lots/Sidewalks Paint Carport $ 25,000 $ 25,000 Forbes Mill Museum Parking Lots/Sidewalks Parking lot maintenance $ 6,500 $ 6,500 Forbes Mill Museum Building Envelope Repoint external masonry walls $ ‐ Forbes Mill Museum Building Envelope Refurbish historic barn door and replace broken windows $ 4,500 $ 4,500 Forbes Mill Museum Roof Systems Roof replacement $ 92,000 $ 92,000 Forbes Mill Museum Roof Systems Roof maintenance $ 5,000 $ 5,000 Forbes Mill Museum Mechanical Systems Replace HVAC system $ 50,000 $ 50,000 Forbes Mill Museum Mechanical Systems Replace exhaust fans $ 2,000 $ 2,000Forbes Mill Museum Electrical Systems Overhaul electrical system $ 50,000 $ 50,000 Forbes Mill Museum Plumbing Systems Replace 2‐KW, 6‐Gal domestic water heater $ 1,500 $ 1,500 Forbes Mill Museum Plumbing Systems Replace 'private' restroom fixtures $ 4,000 $ 4,000 Forbes Mill Museum Fire/Life Safety Systems Replace security system $ ‐ Forbes Mill Museum Interiors Repair trip hazard $ 500 $ 500 Forbes Mill Museum Interiors Replace flooring $ 7,500 $ 7,500 Forbes Mill Museum Interiors Paint interiors $ 22,000 $ 22,000 Forbes Mill Museum Accessibility Issues DAC Accessibility Compliance $ 13,900 $ 13,900 $ 13,900 $ 13,900 $ 13,900 $ 152,900 Tait Museum Parking Lots/Sidewalks Ramp and railing repainting $ 2,500 $ 2,500 Tait Museum Parking Lots/Sidewalks Mill and overlay parking lot $ 10,500 $ 10,500 April 9, 2025

ITEM NO. 17.

Location/Building Project/System Type Project Name FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 TOTALS Tier 3 ‐ Town of Los Gatos Facility Needs Projection
Tait Museum Building envelope Patch stucco walls $ 2,500 $ 2,500 Tait Museum Building envelope Paint exterior $ 15,000 $ 15,000 Tait Museum Building envelope Replace/refinish exterior doors $ 10,500 $ 10,500 Tait Museum Building envelope Replace windows while retaining historic glass $ 30,000 $ 30,000 Tait Museum Roof Systems Roof (2) maintenance & (1) replacement $ 2,000 $ 2,000 Tait Museum Mechanical Systems Replace 120‐MBH Furnace and 5‐ton split system $ 20,000 $ 20,000 Tait Museum Plumbing Systems Replace or install water heater $ ‐ Tait Museum Plumbing Systems Replace galvanized piping $ 10,000 $ 10,000 Tait Museum Plumbing Systems Replace kitchen sink $ 2,000 $ 2,000 Tait Museum Fire/Life Safety Systems Replace security system $ ‐ Tait Museum Interiors Paint interiors $ 15,000 $ 15,000 Tait Museum Interiors Modernize kitchen $ 20,000 $ 20,000 Tait Museum Accessibility Issues DAC Accessibility Compliance $ 14,690 $ 14,690 $ 14,690 $ 14,690 $ 14,690 $ 161,585 Los Gatos Theatre Site/Parking Lots/Sidewalks Asphalt and drainage improvements $ ‐ Los Gatos Theatre Site/Parking Lots/Sidewalks Curbing repair $ ‐Los Gatos Theatre Site/Parking Lots/Sidewalks Gate latch repair $ ‐ Los Gatos Theatre Building Envelope Window replacement $ ‐ Los Gatos Theatre Building Envelope Doors replacement $ ‐ Los Gatos Theatre Building Envelope Entrance door operator $ ‐ Los Gatos Theatre Building Envelope Balcony and entrance terazzo $ 150,000 $ 150,000 Los Gatos Theatre Building Envelope Marquee maintenance $ ‐ Los Gatos Theatre Building Envelope Paint exterior $ ‐
Los Gatos Theatre Roof Systems Downspout maintenance $ ‐ Los Gatos Theatre Roof Systems Leakage repair $ 1,500 $ 1,500 Los Gatos Theatre Roof Systems Roof replacement $ ‐
Los Gatos Theatre Mechanical Systems Interior lighting controls $ ‐ Los Gatos Theatre Mechanical Systems HVAC system improvements $ ‐ Los Gatos Theatre Electrical Systems Overhaul electrical system $ ‐ Los Gatos Theatre Fire/Life Safety Systems Phone line ‐ Fire alarm $ 50,000 $ 50,000 Los Gatos Theatre Fire/Life Safety Systems Large equipment bracing $ 20,000 $ 20,000 Los Gatos Theatre Interiors Paint interior $ ‐
Los Gatos Theatre Interiors Baseboard repair $ ‐
Los Gatos Theatre Interiors Flooring replacement $ ‐
Los Gatos Theatre Interiors Main theatre seating $ ‐
Los Gatos Theatre Interiors Replacement lighting fixtures $ ‐Los Gatos Theatre Interiors Concessions equipment $ ‐ Los Gatos Theatre Interiors PA system $ 5,000 $ 5,000
Los Gatos Theatre Accessibility Issues DAC Accessibility Compliance $ 36,071 $ 36,071 $ 36,071 $ 36,071 $ 36,071 $ 396,784 Los Gatos Theatre Conveyance Systems Phone line ‐ Elevator $ 50,000 $ 50,000 Underground Parking Garage Parking Lots/Sidewalks Lot restriping $ ‐ Underground Parking Garage Electrical Systems Refinish pole lights $ 45,000 $ 45,000 April 9, 2025

ITEM NO. 17.

Location/Building Project/System Type Project Name FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 TOTALS Tier 3 ‐ Town of Los Gatos Facility Needs Projection
Underground Parking Garage Fire/Life Safety Systems Replace sprinkler system $ ‐ Underground Parking Garage Fire/Life Safety Systems Replace sprinkler monitoring system $ 10,000 $ 10,000 Underground Parking Garage Accessibility Issues DAC Accessibility Compliance ‐ Parking Lot 4 $ 7,025 $ 7,025 $ 7,025 $ 7,025 $ 7,025 $ 77,277 Balzer Field (Restrooms Bldg.) Parking Lots/Sidewalks Parking lot maintenance $ 7,000 $ 7,000 Balzer Field (Restrooms Bldg.) Building Envelope Paint exterior $ 8,000 $ 8,000 Balzer Field (Restrooms Bldg.) Roof Systems Roof replacement $ ‐ Balzer Field (Restrooms Bldg.) Mechanical Systems Replace ceiling mounted exhaust fans $ 2,000 $ 2,000 Balzer Field (Restrooms Bldg.) Plumbing Systems Replace 5‐Gal electric domestic water heater $ 2,000 $ 2,000 Balzer Field (Restrooms Bldg.) Interiors Paint interiors $ 3,000 $ 3,000 Balzer Field (Restrooms Bldg.) Accessibility Issues DAC Accessibility Compliance $ 2,420 $ 2,420 $ 2,420 $ 2,420 $ 2,420 $ 26,621 Belgatos Park (Restrooms Bldg.) Parking Lots/Sidewalks Parking lot maintenance $ 6,000 $ 6,000 Belgatos Park (Restrooms Bldg.) Building Envelope Paint exterior $ 4,500 $ 4,500 Belgatos Park (Restrooms Bldg.) Roof Systems Replace roof $ ‐ Belgatos Park (Restrooms Bldg.) Mechanical Systems Replace exhaust fans $ 2,000 $ 2,000 Belgatos Park (Restrooms Bldg.) Electrical Systems Replace 225‐amp main electrical panel $ 5,000 $ 5,000 Belgatos Park (Restrooms Bldg.) Electrical Systems Replace 10‐hp motor controller $ 4,000 $ 4,000 Belgatos Park (Restrooms Bldg.) Plumbing Systems Replace restroom fixtures $ 8,000 $ 8,000 Belgatos Park (Restrooms Bldg.) Interiors Paint interiors $ ‐ Belgatos Park (Restrooms Bldg.) Accessibility Issues DAC Accessibility Compliance $ 2,089 $ 2,089 $ 2,089 $ 2,089 $ 2,089 $ 22,976 Blossom Hill Park (Restrooms
Bldg.) Building Envelope Paint exterior $ 4,500 $ 4,500 Blossom Hill Park (Restrooms
Bldg.) Roof Systems Replace roof $ ‐Blossom Hill Park (Restrooms Bldg.) Electrical Systems Upgrade 200‐amp main electrical panel $ 10,000 $ 10,000 Blossom Hill Park (Restrooms
Bldg.) Electrical Systems Replace tennis court time clocks $ 14,000 $ 14,000 Blossom Hill Park (Restrooms
Bldg.) Plumbing Systems Replace 20‐Gal electric domestic water heater $ 2,000 $ 2,000 Blossom Hill Park (Restrooms
Bldg.) Interiors Paint interiors, including walls, floors, and celings $ 7,500 $ 7,500 Blossom Hill Park (Restrooms
Bldg.) Accessibility Issues DAC Accessibility Compliance $ 3,218 $ 3,218 $ 3,218 $ 3,218 $ 3,218 $ 35,401 Creekside Sports Park Parking Lots/Sidewalks Parking lot maintenance $ 10,500 $ 10,500 Creekside Sports Park Building Envelope Paint Exterior $ 4,500 $ 4,500 Creekside Sports Park Building Envelope Replace and paint wood fascia boards $ 30,000 $ 30,000 Creekside Sports Park Mechanical Systems Replace exhaust fan $ 3,000 $ 3,000 Creekside Sports Park Plumbing Systems Replace 20‐Gal, 4.5 KW domestic water heater $ 4,000 $ 4,000 Creekside Sports Park Plumbing Systems Replace diaphram pressure booster system $ 10,000 $ 10,000 Creekside Sports Park Interiors Paint interiors $ 6,500 $ 6,500Creekside Sports Park Accessibility Issues DAC Accessibility Compliance $ 830 $ 830 $ 830 $ 830 $ 830 $ 9,127 April 9, 2025

ITEM NO. 17.

Location/Building Project/System Type Project Name FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 TOTALS Tier 3 ‐ Town of Los Gatos Facility Needs Projection
Oak Meadow Park Restrooms Parking Lots/Sidewalks Parking lot maintenance (including ADA markings) $ 15,000 $ 15,000 Oak Meadow Park Restrooms Building Envelope Paint exterior privacy fence $ 2,000 $ 2,000 Oak Meadow Park Restrooms Roof Systems Roof replacement $ ‐ Oak Meadow Park Restrooms Mechanical Systems Replace direct drive propeller exhaust fans $ ‐ Oak Meadow Park Restrooms Interiors Paint Interiors $ 7,000 $ 7,000 Oak Meadow Park Restrooms Accessibility Issues DAC Accessibility Compliance $ 3,285 $ 3,285 $ 3,285 $ 3,285 $ 3,285 $ 36,133 Annual Total 2022 Dollars2 $ 2,665,545 $ 3,058,545 $ 1,872,045 $ 1,732,545 $ 1,567,045 $ 12,776,995 $ 2,998,376 $ 3,578,065 $ 2,277,629 $ 2,192,222 $ 2,062,124 $ 13,108,416 Notes:1. Projections are based on information developed by Facility Engineering Associates in Fiscal Year 2021/22, informtation developed by Disability Access Consultants in 2022 and staff recommendations

2. Annual totals are on 2022 dollars. 2024 escalation provided for discussion. Future development of this projection will escalate all costs to year of projected expense.

Annual Total Escalated to Fiscal Year Dollars at 4%
April 9, 2025

ITEM NO. 17.

Funding Program Project Location Project
Preliminary
Opinion of
Potential Costs
(2024$)
Safety
Equity
Quality of Life
Regulatory
Mandate
Park Improvement All Parks Town‐wide drinking fountain to hydration station $ 50,000 xx Park Improvement All Parks ADA Compliance Work $ 1,750,000 xxx x Park Improvement Blossom Hill Park Turf Rehabilitation $ 200,000 xx Park Improvement Civic Center Lawn Irrigation System Replacement $ 200,000 x Park Improvement LaRinconada Park Playground Replacement $ 300,000 xx Park Improvement LaRinconada Park Irrigation System, Furniture and General Upgrades $ 50,000 xPark Improvement LaRinconada Park Turf Renovation + Irrigation system upgrades $ 200,000 xPark Improvement Live Oak Manor Turf Rehabilitation $ 200,000 x Park Improvement Los Gatos Creek Develop Los Gatos Creek Restoration Plan (per General Plan 2024) TBD Park Improvement Oak Hill Play Lot Play Structure Replacement / Hardscape Upgrades $ 350,000 xx Park Improvement Oak Meadow Park Playground Replacement $ 500,000 xxPark Improvement Oak Meadow Park Bocce Courts Reconstruction $ 50,000 xx Park Improvement Oak Meadow Park Fencing Replacement $ 75,000 xx Park Improvement Oak Meadow Park General Improvements and Upkeep $ 250,000 xxx Park Improvement Oak Meadow Park Parking Kiosk to reinstate paid parking $ 25,000 Park Improvement Oak Meadow Park Oak Meadow Park Restroom Expansion $ 750,000 xx Park Improvement Plaza Park Event Lighting $ 50,000 x
Street Improvement
Roberts Road at Los Gatos CreekTrail
New trail access from Blossom Hill Road (to support Highway Overcrossing) $ 125,000 xx
Park Improvement Townwide Townwide Park Master Plan $ 250,000 xxPark Improvement / Trail Along Highway 17 Add Trail along Highway 17 from Los Gatos Creek Trail to Lodge (from BPMP) $ 1,189,000
Park Improvement / Trail Farley Road
New Highway 17 Overcrossing from Farley Road to Los Gatos CreekTrail though Vasona Park (from BPMP) $ 8,400,000 Park Improvement / Trail Guadalupe River Trail Guadalupe River Trail near Hicks Road $ 6,600,000 xx Park Improvement / Trail Highway 85 Rail Trail Southern Pacific Rail Trail (Hwy 85 Corridor) $ 5,840,000 xxPark Improvement / Trail Los Gatos Creek Trail Trail Pavement Rehab $ 580,000 xx Park Improvement / Trail Los Gatos Creek Trail Trail Access, Signage and Wayfinding (per General Plan 2040) $ 10,000 xx Park Improvement / Trail Los Gatos Creek Trail Lighting at Undercrossings; BHR and Hwy 85 $ 175,000 x Park Improvement / Trail Los Gatos Creek Trail LGCT repair wooden bridge on LG Creek Trail $ 20,000 xx Park Improvement / Trail Ross Creek Develop a Ross Creek Restoration Plan (per General Plan 2040) TBD Storm Drainage Ashler Avenue
Add drainage structures and piping to eliminate dead end systems (2019 Study) $ 4,774,000 xx
Storm Drainage Bachman at Massol Replace trash rack and improve culvert inlet (2019 Study) $ 84,000 xx Tier 3 Projects ‐ Streets, Parks and Other Needs
April 9, 2025Page 1 Tier 3 Projects

ITEM NO. 17.

Funding Program Project Location Project
Preliminary
Opinion of
Potential Costs
(2024$)
Safety
Equity
Quality of Life
Regulatory
Mandate
Tier 3 Projects ‐ Streets, Parks and Other Needs
Storm Drainage
Bayview Court / Bayview Avenue
@ Main; Penn Ave at Peralta /
Fairview
Upgrade trash rack and culvert ; add parallel drainage pipe along Main Street, install drainage in Fairview Plaza; replace concrete channel along Pennsylvania with pipe (2019 Study) $ 3,542,000 xx Storm Drainage Euclid Avenue
Upgrade and extend system to convey 10% annual chance event (2019 Study) $ 1,386,000 xx
Storm Drainage Foster Road Add inlets and or curb (2019 Study) $ 282,800 xx Storm Drainage
Kennedy between Englewood
and LGB
Extend drainage system on Kennedy from Vista del Monte to Gem Avenue (2019 Study) $ 1,044,400 xx
Storm Drainage Los Gatos ‐Almaden Road
Install drainage on Los Gatos Almaden Road near Gardenia and Longwood; upsize pipes from Camino del Cerro to south of Escobar Ave; connect system from Cherry Blossom / Lester to south system; requires construction on private property (2019 Study) $ 7,302,400 xx Storm Drainage
Los Gatos Creek Trail at Forbes
Mill Correct deficiencies in two systems (2019 Study) $ 316,400 xx Storm Drainage
Replace Frames and Grates onstructures Replace frames and grates on structures throughout Town $ 49,500 x Storm Drainage
Replace Manholes of Blossom Hill
Road Replace Manholes of Blossom Hill Road $ 169,200 x
Storm Drainage Shannon Road at Short Road
Extend drainage on Shannon Road to provide inlets; excavate Short Creek Channel to reduce drain back up when creek is full.(2019 Study) $ 455,000 xx Storm Drainage Roberts Road / University
Add drainage on University Ave from Roberts Road to Blossom Hill Road HR + 150' east on BHR to connect to existing system(2019 Study) $ 2,340,800 xx Storm Drainage 195 Jackson Repair failing drainage pipe on private property $ 200,000 xx Storm Drainage Kennedy Meadows Eliminate misaligned pipe and replace with open channel $ 220,000 xx Storm Drainage Overlook Road Drainage Add inlets and piping $ 960,000 xx Street Improvement Blossom Hill Road Highway 17 Overcrossing Grant Match $ 1,400,000 xxx Street Improvement Downtown Replace Tree Wrap Lights and Upgrade Electrical $ 150,000 xx Street Improvement Grays Lane Traffic Bollards to protect pedestrian space $ 35,000 xx Street Improvement
North and South Santa Cruz from
Highway 9 to Broadway Streetscape Project $ 980,000 xx
Street Improvement
North Santa Cruz from Blossom
Hill Road to Highway 9 Pavement Rehabilitation $ 910,000 xx April 9, 2025Page 2 Tier 3 Projects

ITEM NO. 17.

Funding Program Project Location Project
Preliminary
Opinion of
Potential Costs
(2024$)
Safety
Equity
Quality of Life
Regulatory
Mandate
Tier 3 Projects ‐ Streets, Parks and Other Needs
Street Improvement Pollard Road
Compelete Streets Improvements from Knowles Drive to Quito Road (per BPMP) $ 2,900,000
Street Improvement Townwide Comprehensive Bike Rack Installations $ 17,000 x Street Improvement Townwide Town‐wide Traffic Study Model $ 250,000 xx Street Improvement Winchester Blvd
Complete Streets Improvements from Knowles Drive to Blossom Hill Road (per BPMP) $ 74,000,000
Street Repair/ Maintenance / Safety
Blossom Hill Road at Cherry
Blossom Traffic signal replacement and intersection improvement $ 4,970,000 xx Street Repair/ Maintenance / Safety
Blossom Hill Road at Francis Oaks
Way Evaluate hillside for potential stabilization $ 35,000 x Street Repair/ Maintenance / Safety
Blossom Hill Road from Union to
Meadowbrook Sidewalk gap closure $ 3,550,000 xxx
Street Repair/ Maintenance / Safety Dittos Lane Slope Assessment Assess slope stability and recommend potential modifications $ 100,000 Street Repair/ Maintenance / Safety Downtown Upgrade street lights to LED's $ 350,000 Street Repair/ Maintenance / Safety Downtown Sign Management Project $ 50,000 x Street Repair/ Maintenance / Safety
Wildfire ‐ Assess and Improve
WUI Access (LG.FR.1) Assess WUI Roads and create passing areas where possible Street Repair/ Maintenance / Safety Fisher Avenue Sidewalk gap closure (from BPMP) $ 600,000 xx Street Repair/ Maintenance / Safety Heritage Grove Area Replace asphalt sidewalks $ 80,000 xxx Street Repair/ Maintenance / Safety Highway 17 at Route 9 Interchange Reconstruction ‐ Town cost share is 10% $ 11,000,000 Street Repair/ Maintenance / Safety Los Gatos Almaden Road Sidewalk gap closure along Los Gatos Almaden Road: Peach Blossom Lane to Camine del Cerro (from BPMP) $ 9,100,000 xxx
Street Repair/ Maintenance / Safety Public Parking Lots Pavement Repair $ 500,000 xx Street Repair/ Maintenance / Safety Quito Road at Bicknell Repair eroding stream embankment $ 400,000 x Street Repair/ Maintenance / Safety Townwide
Identify evacuation routes for wildfire zones and design for pull offs to ensure emergency access (from General Plan 2040 and CWPP) $ 200,000 xxx Street Repair/ Maintenance / Safety Townwide Green Infrastructure Improvements TBD x Street Repair/ Maintenance / Safety Townwide Townwide Traffic Signal Replacements $ 30,450,000 x Street Repair/ Maintenance / Safety Townwide ADA Compliance Work $ 20,330,000 xxx x Street Repair/ Maintenance / Safety Townwide Townwide Traffic Signal Safety Upgrades $ 660,000 x Street Repair/ Maintenance / Safety
Union Avenue Blossom Hill to
Lynn Avenue Sidewalk gap filling, add bike lanes $ 2,500,000 xxx April 9, 2025Page 3 Tier 3 Projects

ITEM NO. 17.

Funding Program Project Location Project
Preliminary
Opinion of
Potential Costs
(2024$)
Safety
Equity
Quality of Life
Regulatory
Mandate
Tier 3 Projects ‐ Streets, Parks and Other Needs
Town Infrastructure and Facilities Corp Yard Replace Switch Gear and Generator $ 500,000 xx Town Infrastructure and Facilities Corp Yard CNG station decommissioning $ 200,000 x Town Infrastructure and Facilities Corp Yard Charging Station for Town Vehicles $ 250,000 x Town Infrastructure and Facilities Downtown New restroom design and construction $ 500,000 xx Town Infrastructure and Facilities Police Operations Building Charging Stations (2) (employee use) $ 40,000 x Information Technology Police Operations Building Secondary Backup Replication System $ 70,000 Notes:1. BPMP = Bicycle and Pedestrian Master Plan

2. CWPP = Community Wildfire Protection Plan

3. 2019 Study = Drainage Assessment complete for critical areas April 9, 2025Page 4 Tier 3 Projects

ITEM NO. 17.

Proposed Capital Improvement
Program
FY2025/26 to 2029/30
Town Council Study Session
April 22, 2025
Item 2
ATTACHMENT 3

ITEM NO. 17.

AGENDA and RECOMMENDATION

1. Intent of Capital Improvement Program

2. Changes in Funding for Proposed FY25/26 CIP

3. Tier 1 / Tier 2 / Tier 3 Projects

4. Project Specific Changes / New Projects
Recommendation: Receive the proposed Capital Improvement Program (CIP) Budget and provide direction to the Finance Commission for their review of the proposed plan.

ITEM NO. 17.

INTENT OF FY 2025/25 – 2029/30 CIP
• Support Core Goals of Good Governance and Fiscal Stability • Take First Steps to Ensure Prudent Financial Management and Fully Funded Five-Year Capital Improvement Plan
• Build on Prior Work to Define Deferred Capital Improvement Programs for Town Facilities and Lifecycle Assets

ITEM NO. 17.

INTENT OF FY 2025/25 – 2029/30 CIP
Effectively Manage Town Assets Including:
• Parks and Open Space: 17 Areas, 223 Acres, 9 Miles of Trail • Roadways: 113 miles (236 lane miles), 31 Traffic Signals, 2,100 Streetlights, 576,000 Linear Feet of Sidewalk
• Public Buildings: 12 Buildings Totaling 139,373 Square Feet • Parking Lots: 23 surface lots plus one underground parking structure • Ancillary Assets: 5 Park Restrooms, Storm Drainage systems, Guard Rails, Retaining Walls, and Signage

ITEM NO. 17.

CHANGES IN PROPOSED CIP
• $4.9 million CIP
• Eliminates Measure G Transfer to CIP
• 14 Projects Completed / Consolidated /
Withdrawn
• Remaining Projects Categorized by Tier
Trail Connector Signage (Staff Photo)

ITEM NO. 17.

TIER 1 / TIER 2 / TIER 3
• Projects in Past CIP’s – Tier 1 or Tier 2 (Staff Report Attachment 1) • Other Known Needs – Tier 3 (Staff Report Attachment 2) • Tier 1 – In Progress, Grant Funded, Substantial Progress Expected in FY25/26
• Tier 2 – All Remaining Projects in Prior CIP’s
• Divided into Four Classes Shown in Attachment 1
• Will be Released for Work as Funding and Staff Time Permits • Recognizes Staffing Levels are Limited and that Carryforward Funding has Been Excessive in Recent Years

ITEM NO. 17.

PROJECT SPECIFIC CHANGES – TIER 1
• Storm Drainage Mapping – Added Storm Drain Funds to
Complete Work in Progress
• Vasona Oaks Drainage – New Project to Correct Failing Drainage System
• Shannon Road Repair – Added All Funds from Retaining Wall Project to Support Anticipated Overages in Construction Bids • Roadside and Open Space Vegetation Management –
Retained $100,000 New Funding To Each

ITEM NO. 17.

PROJECT SPECIFIC CHANGES – TIER 1
• Sport Court Resurfacing – Repurposed Project to Focus Efforts at La Rinconada Court
• IT Disaster Resiliency – New Project To Support Town’s Emergency Management Efforts; Funded from $1M
Emergency Funds
• Auto Gate Replacements at POB and PPW – New Project to Support Site Security
• EV Chargers at 41 Miles – Added Funds to Supplement Grant Accepted through Town Council Action on 3/4/25

ITEM NO. 17.

NEW TIER 2 PROJECTS
• Traffic / Travel Demand
Model
• Parks and Trails Master Plan
• Condition Assessment of Civic
Center
• Village Lane Trash Enclosure
Photo Credit: Penner / Los Gatan Howes Playlot (Staff Photo)

ITEM NO. 17.

SUMMARY OF KNOWN NEEDS – TIER 3
Items / Need
Current Opinion of
Potential Costs (2024$)
Town Owned Buildings - Maintenance $ 20,278,913
Town Owned Buildings – Capital Needs $ 1,490,000
Parks1 $ 28,189,000
Storm Drainage $ 23,126,500
Streets and Roads $ 166,037,000
IT Needs $ 310,000
Notes: 1. Cost does not include restoration plans for Ross Creek and Los Gatos Creek as recommended in General Plan 2040 Page 741
ITEM NO. 17.

TONIGHT’S ACTION
Receive the Proposed Capital Improvement Program (CIP) Budget and Provide Direction to the Finance Commission for their Review of the Proposed Plan.

ITEM NO. 17.

PREPARED BY: Nicolle Burnham
Parks and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 04/22/2025
ITEM NO: 2

ADDENDUM
DATE: April 21, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive the Proposed Fiscal Year 2025-26 through 2029-30 Capital Improvement Program Budget and Provide Direction
REMARKS:

Attachment 3 contains the staff presentation.

Attachments Received with the Staff Report:

1. Tier 1 / Tier 2 Projects

2. Tier 3 Projects
Attachment Received with this Addendum:

3. Staff Presentation

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ATTACHMENT 6

TOWN OF LOS GATOS DONATION OPPORTUNITIES
FY 2025-26 LIST OF TOWN NEEDS
To ensure that all donations and contributions are sought and accepted in an ethical manner, the Council established a Donation and Solicitation Policy. A list of Town needs was developed to identify goods, services, and other contributions to enhance Town services, programs, and events. The recommended needs for FY 2025-26

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

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

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

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

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

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

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

ITEM NO. 17.

ATTACHMENT
7 Page 749
ITEM NO. 17.

ColuiciJ' members•.
,, ••
• • •
.. ---�· '
,. r·'"-
•1 st;lpport th'e following for �-'=-�-s Gatos Monte Sereno Police Department. -� # ;JI-·� . •- .> ., �. .. . � As you considerffie fiscaf2!.l6�ear budget, I request you ensure that the budget preserves these items:
0-Prioritize maintaining budget':<:! LGMSPD staffing levels and fiscal support for forecasted vacancies in preparation of local or regionarevents and continuity in level of policing services. LGMSPD staffing to be prioritized at or above budgeted levels in preparation for foreseen vacancies by timely recruitment and r�ion of public safety professionals who embody the Town's values, character, and culture. \/2. Preserve a budget that sustains. LGMSPD's community-police partnerships. Continue the LGMSPD's progress made in community policing - including programs and initiatives like supporting robust volunteer programs (CERT, DART, Explorers, and Volunteers in Policing), the Community Police Academy, customized NeiQtlborhood Watch meetings, and the Therapy Canine program - which are essential to maintaining public trust, preventing crime, and reinforcing safety, connection, and transparency.

3. Invest in LGMSPD's ability to advance technologies and maintain collateral teams and competencies.

Support the integration of progressive technologies and trained collateral teams to enhance investigative capacity and supplement staffing - ensuring LGMSPD remains nimble, proactive, and equipped to serve a c7munity that values innovation and safety.
� AUgn fiscal commitment to act on the findings of the organizational assessment conducted by Meliora Public Safety Consulting to modernize the LGMSPD's operations. This includes optimizing staffing models, consolidation efforts, and improving service delivery systems. Implementing these recommendations will ensure the department continues to meet the evolving needs of the community and public safety. ·��

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May 14, 2025
Dear Los Gatos Town Council: The Honorable Mayor Hudes, Vice Mayor Moore, and Council Members Ristow, Badame, and Rennie
NUMU is requesting Town investment $150k investment for FY 25/26 and $100k FY26/27 Since rebranding and relocating to the Los Gatos Civic Center, New Museum Los Gatos (NUMU) has experienced significant growth, thanks in part to the support of the Town of Los Gatos. We are grateful for our continued partnership. Today, the Museum serves as a vibrant hub for art and history in the Bay Area, welcoming nearly 7,000 visitors annually, hosting 12 rotating exhibitions, a suite of dynamic programming,and stewarding and presenting a permanent art and history collection.

NUMU has received recognition and funding from County, State, and Federal agencies; as well as, individual donations and private foundations. However, in April 2025, the Institute of Museum and Library Services unexpectedly terminated two grants, leaving $135,000 in anticipated funding unfulfilled.

Now more than ever, NUMU must rely on the support of our community. We are planning a series of fundraising initiatives; in addition, we are requesting continued support from the Town to help us move forward. This proposal will fund programs and exhibitions that attract visitors who contribute to the local economy by dining, shopping, and sharing their experiences in Los Gatos. It will also ensure the stewardship and engagement of the art and artifacts in NUMU’s Permanent Los Gatos History Collection and introduce programs designed to engage and serve local seniors. These activities which greatly align with the Town’s Strategic Priorities.

Specifically, we are seeking funding for:
- The Los Gatos History Project, covering the period from June 30, 2025, to July 1, 2027 ($100k) - Capital improvements related to the recent Tenant Improvement Project ($50k) Your support will help sustain a vital cultural asset that enriches our community and boosts local vitality.

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

ITEM NO. 17.

Overview
This proposal aligns with the Towns 2025-2027 Strategic Priorities significantly enhancing Community Character and Civic Engagement both enhancing the quality of life in Los Gatos. ● Goal: Community Character
○ Foster the economic vitality of businesses in Town.
○ Preserve the Town’s small-town charm
● Goal: Civic Engagement
○ Ensure all residents and visitors feel a sense of belonging in Los Gatos, maintaining and enhancing the Town as a welcoming, family-oriented, safe, and inclusive community. ○ Continue to engage community service providers to meet the needs of older adults.

Request #1:
$50k Restore facility functionality due to impact of “Tenant Improvement Project” Background:

In October 2024, the Town reconfigured the museum’s and Town HR offices, resulting in a loss of 180 sq. ft. of NUMU office space. Although construction was expected to last six weeks, it extended from November 2024 through April 30, 2025. This disruption strained staff resources and temporarily shifted focus away from fundraising, while also leading to inefficient use of space.

Overview:

The museum has temporarily relocated its offices into the NUMU Studio which is revenue generating space, where NUMU hosts rentals and a variety of workshops. After meeting with a professional space designer who provided the following feedback: “the “original” plan was a clean square space that was efficient, and in the “remodel” plan the space is truncated that is far less efficient. The “potential” plan takes space from our current studio to get back to a more usable space. Equal square footage does not equate to equal space efficiency. With slight underspending in the Town’s “Tenant Improvement Project” budget, we respectfully request a portion be allocated to adjust the wall between the office and studio to restore both spaces to full functionality.
● Restore Functionality of NUMU facility: Build wall dividing NUMU Office & Studio est. $50k

ITEM NO. 17.

Request #2:

Provide $100k per year over the next 2 years ($200k) in matching funds for the Los Gatos History Project for programming, exhibitions and collections stewardship.

Background:

In March 2024, New Museum Los Gatos requested $300k over three years in support of the Los Gatos History Project. The town granted the initial $100k request for FY 24/25. The museum is back for a continuation of the request. $100k FY25/26 and $100k FY26/27.

Overview:

The Los Gatos History Project makes our permanent art and history collection accessible in-person and through an online database. This project invites the community to experience the under told stories of our town’s local history through programs and rotating exhibitions. Our professional museum staff is uniquely qualified in delivering exhibitions and programs, collections care and display. The museum has actively secured funds since 2019 to help fund this project. The museum also submitted a grant to the 2025 IMLS Proposals to support our paper ephemera estimated at 10,000 items; however, the outlook of federal funding looks grim. Now more than ever it is important that the town invest in our shared history. We are asking the Town to participate in preserving and presenting its history.

Funding to date
● The County of Santa Clara Historic Grant Program (2019-2022) invested $260k in initial funding.
● Institute of Museum and Library Services (IMLS) grant of $190k (matching grant over 3 years 2022-2025) to continue our work stewarding the Town’s history– this grant requires a 1:1 match - terminated $45k outstanding
● Institute of Museum and Library Services (IMLS) grant of $120k (matching grant over two years 2024-2026) with the Muwekma Ohlone Exhibition and San Jose State University. - this grant requires a 1:1 match - terminated $90k outstanding ● Since 2021 NUMU has raised an additional $125k to continue this work over the next three years
● NUMU has committed an additional $120k over the next two years to support the Los Gatos History Project.

Pending
● Institute of Museum and Library Services (IMLS) grant of $228k (matching grant over three years 2025-2028 - award notification Aug. 2025

ITEM NO. 17.

Town’s Strategic Priority Alignment
● Aligns with the town’s strategic priority to Preserve the “Town’s small-town charm” ○ By supporting the preservation and presentation of historical items through the Los Gatos history project we help preserve and share the vibrant history of Los Gatos. ● Produce history related exhibitions and programs sharing untold histories of Los Gatos and the surrounding areas that support the Strategic Priority to “Ensure all residents and visitors feel a sense of belonging in Los Gatos, maintaining and enhancing the Town as a welcoming, family-oriented, safe, and inclusive community” and “Continue to engage community service providers to meet the needs of older adults.”
Upcoming Exhibitions:
■ The Los Gatos History Project (Refresh with new artifacts & stories 2025): exploring untold stories: rotating exhibits highlighting and displaying the wide range of artifacts from the Permanent Collection.
■ Revitalization: Culture, Heritage and Traditions of the Muwekma Ohlone Tribe (opening 2026), funds will be used for exhibition development, supplies and materials.Accessible Programs
■ Los Gatos History of the 1960s
■ The Boys: Frank Ingerson and George Dennison (2026-) NUMU has the most comprehensive collection representing the lives of these prolific artists and life partners and their home, Cathedral Oaks, a mountain destination for creatives in mid-20th-century Los Gatos.
○ Accessible Programs
■ Monthly Free Public Art & History Tours on Free First Sundays. ■ Private Tours for local senior groups.
■ Monthly e-newsletters and social media posts
■ Collection Lab: Lectures & talks with scholars, subject matter experts and local community partners. Examples include:
● Billy Jones Railroad
● How to archive your family’s collection (catalogIt)
● Caring for your collection
● Lectures with local historians
● History Still Life Drawing Workshops
■ Footbridge Aspiring Artist Mural Program: NUMU provides a 3 week camp for ages 8-12 to create a mural to be placed on the footbridge celebrating life in Los Gatos.

Students learn about Los Gatos history and art basics.
■ Presenting at statewide conferences bringing attention and visibility to the important work achieved in Los Gatos.

ITEM NO. 17.

Overview: The Permanent Art & History Collection
NUMU collected works of art and historical artifacts that engage and expand interest in the globally relevant arts and histories of the Bay Area with a special focus on Los Gatos. NUMU has been a collecting museum since its inception as the Los Gatos Museum in 1965. Like most museums, we collect objects and materials of cultural and historical importance, preserve, research and present them to the public for the purpose of education and enjoyment. NUMU’s Permanent Collection consists of objects, archives, and artwork tied to the history of Los Gatos and the surrounding communities.

Recent Donations to the Collection
● 17 new ceramic tiles related to Frank Ingerson + George Dennison (“The Boys”), ● Costumes, costume renderings, and memorabilia from Marcia Frederick, the resident costume designer for the California Actors Theater (CAT) at the Old Town Theatre, ● High school cheerleading uniforms and assorted memories from LGHS that belonged to Stacy (Hawes) Melle, who went on to become the Vice President of Marketing at NBC-Universal, and who was diagnosed with cystic fibrosis and received a double lung transplant. Her husband, Kelly Melle, donated the items in her memory.
● To date the museum has digitized over 3,463 artifacts in our permanent collection. This funding would ensure that we can digitize our entire collection which far exceeds our original estimate. We now estimate the entire collection including art, artifacts and ephemera at 14,000. ○ (View the database: https://hub.catalogit.app/4267)

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10 Reasons to Support the Arts in Santa Clara County
The arts are fundamental to our humanity. They ennoble and inspire us—fostering creativity, empathy, and beauty. The arts also strengthen our communities socially, educationally, and economically—benefits that persist even during a pandemic that has been devastating to the arts. The following 10 reasons show why an investment in artists, creative workers, and arts organizations is vital to the nation’s post-pandemic healing and recovery.

1. Arts unify communities. 72% of Americans believe “the arts unify our communities regardless of age, race, and ethnicity” and 73% agree that the arts “helps me understand other cultures better”—a perspective observed across all demographic and economic categories.

2. Arts improve individual well-being. 81% of the population says the arts are a “positive experience in a troubled world,” 69% of the population believe the arts “lift me up beyond everyday experiences,” and 73% feel the arts give them “pure pleasure to experience and participate in.”

3. Arts strengthen the economy. The nation’s arts and culture sector—nonprofit, commercial, education—is a $1.02 trillion industry that supports 4.9 million jobs (2021). That is 4.4% of the nation’s economy—a larger share of GDP than powerhouse sectors such as transportation, construction, and agriculture. In California, arts and culture is a $261.1 billion industry—7.7% of the state economy—and supports 742,432 jobs (bigger than transportation, construction, and agriculture). The arts accelerate economic recovery: a growth in arts employment has a positive and causal effect on overall employment. (U.S. Bureau of Economic Analysis). Santa Clara County’s nonprofit arts industry alone generates $384.5 million in economic activity annually—spending by organizations and their audiences—which supports 5,916 jobs and generates $66.3 million in local, state, and federal government revenue. (2022)

4. Arts drive tourism and revenue to local businesses. Attendees at Santa Clara County’s nonprofit arts and culture events spend an average of $39.56 per person, per event, beyond the cost of admission on items such as meals, parking, and lodging—vital income for local businesses. 26% of attendees live outside of Santa Clara County; they average $59.29 in event-related spending. Arts travelers are ideal tourists, staying longer and spending more to seek out authentic culture experiences.

5. Arts improve academic performance. Students engaged in arts learning have higher GPAs, standardized test scores, and college-going rates as well as lower drop-out rates. These academic benefits are reaped by students across all socio-economic strata. Yet the Department of Education reports that access to arts education for students of color is significantly lower than for their white peers. 91% of Americans believe that arts are part of a well-rounded K-12 education.

6. Arts spark creativity and innovation. Creativity is among the top five applied skills sought by business leaders—per the Conference Board’s Ready to Innovate report—with 72% saying creativity is of “high importance” when hiring.

Research on creativity shows that Nobel laureates in the sciences are 17 times more likely to be actively engaged as an arts maker than other scientists.

7. Arts have social impact. University of Pennsylvania researchers have demonstrated that a high concentration of the arts in a city leads to higher civic engagement, more social cohesion, higher child welfare, and lower poverty rates.

8. Arts improve healthcare. Nearly one-half of the nation’s healthcare institutions provide arts programming for patients, families, and even staff. 78% deliver these programs because of their healing benefits to patients—shorter hospital stays, better pain management, and less medication.

ITEM NO. 17.

9. Arts for the health and well-being of our military. The arts heal the mental, physical, and moral injuries of war for military servicemembers and Veterans, who rank the creative arts therapies in the top four (out of 40) interventions and treatments. Across the military continuum, the arts promote resilience during pre-deployment, deployment, and the reintegration of military servicemembers, Veterans, their families, and caregivers into communities.

10. Arts Strengthen Mental Health. The arts are an effective resource in reducing depression and anxiety and increasing life satisfaction. Just 30 minutes of active arts activities daily can combat the ill effects of isolation and loneliness associated with COVID-19.

ITEM NO. 17.

From: Prasad Shamain
To: Clerk
Subject: May 20 Public Council Hearing; Public Comment Item No. "2025-26 Town Budget” Date: Friday, May 16, 2025 1:25:57 PM
[EXTERNAL SENDER]
Dear Clerk,
Please include the following comments in the Addendum for the May 20 Public Hearing concerning the 2025-26 Town Budget.

To the Town council members,
I am writing to comment on the petition about the Hilo eucalyptus grove. We have fond memories of walking to Blossom hill park from our home through the fragrant shady eucalyptus grove with our young kids over the last 12 years. However, we do understand the fire hazard concern raised by neighbors residing in the immediate vicinity of this beautiful grove. Therefore, we want to support their petition to have PGE replace the trees in the grove, provided the replacement trees are fire-safe, mature, fast growing, tall &, preferably, fragrant.

Regards,
Prasad Shamain,

ITEM NO. 17.