Agenda packet — Los Gatos City Council, October 7, 2025 (part 5 of 6)

ITEM NO. 12.

Jeffrey P. Blum, Attorney at Law
Family Law Mediation and Private Judging
Los Gatos, California 95032
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ITEM NO. 12.

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ITEM NO. 12.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 10/07/2025
ITEM NO: 13
DATE: October 7, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Adopt A Resolution Granting Consent to the County of Santa Cruz to Establish the Santa Cruz Mountain Wine Improvement District (SCMWID) and Include the Town of Los Gatos Within the District.

RECOMMENDATION: Adopt a Resolution granting consent to the County of Santa Cruz to establish the Santa Cruz Mountain Wine Improvement District (SCMWID) and include the Town of Los Gatos within the District.

FISCAL IMPACT:

There is no cost to the Town to participate in the Santa Cruz Mountains Wine Improvement District (SCMWID). The SCMWID programs are intended to increase visitation to the participating wineries within the Town of Los Gatos; thus there may be an increase in sales tax collections.

STRATEGIC PRIORITY:

This item aligns with the Core Goal of Community Character and the strategic priority to “foster the economic vitality of businesses in Town.”
BACKGROUND:

The County of Santa Cruz is working with the Santa Cruz Mountains Winegrowers Association and Civitas Advisors to form the SCMWID pursuant to the Property and Business Improvement District Law of 1994. The County of Santa Cruz has requested the inclusion of the Town of Los Gatos in the SCMWID, which must be approved by the Town of Los Gatos by Resolution approved by the Town Council (Attachment 1). The data and information provided within this staff report have been provided by the Santa Cruz Mountains Winegrowers Association and

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ITEM NO. 13.

PAGE 2 OF 6
SUBJECT: Resolution to include the Town of Los Gatos in the SCMWID DATE: October 7, 2025
Civitas Advisors, as the Formation Committee for the SCMWID, and have not been calculated or verified by Town staff.

Through the evolution of the process, the proposed boundaries of the SCMWID have shifted and currently contain four wineries located within the Town of Los Gatos that would be included and assessed in the SCMWID should the Town Council adopt the Resolution. These include: Gali Vineyards, Saison Winery Tasting Room, McCarthy Family Estate Vineyard, and La Rusticana D’Orsa Vineyards (currently only operating as a wine grower). Town staff received, from the Formation Committee, signed petitions of support from Gali Vineyards and McCarthy Family Estate Vineyards (Attachment 2). The committee noted that Saison provided verbal support of the district, although no petition of support has been received by Town staff.

DISCUSSION:

The SCMWID is a benefit assessment district proposed to create a revenue source to help fund marketing and brand awareness, and business improvement and special project efforts for wineries located in and around the Santa Cruz Mountains. This approach has been used successfully in other wine regions throughout the country to provide the benefit of driving increased sales revenue directly to participating businesses. The SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville; the towns of Los Gatos, Portola Valley, and Woodside; and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo.

Several winery owners opted to pursue the formation of the SCMWID to create a revenue source devoted to marketing SCMWID as a premier wine destination and increasing awareness and demand for visitation at assessed wineries, ultimately increasing the sales revenue for the participating businesses. If established, it is estimated that the SCMWID would generate approximately $575,000 on an annual basis for promotion of winery businesses participating in the SCMWID.

Wine Improvement Districts
Wine Improvement Districts (WID) leverage efficiencies of the private sector operation in the market-based promotion of business districts. These special assessment districts allow assessed business owners to organize their efforts to increase sales and promotional efforts. Business owners within the WID fund the WID, and those funds are used to provide direct services that are desired by and benefit the assessed businesses within the WID.

Designed, created, and governed by those wineries being assessed within the district, WIDs provide stable funding for members, and customized benefits to fit the needs of individual destinations, allowing for a wide range of services including destination marketing, business promotion, and sales lead generation. WIDs provides a dedicated and stable funding source for

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ITEM NO. 13.

PAGE 3 OF 6
SUBJECT: Resolution to include the Town of Los Gatos in the SCMWID DATE: October 7, 2025
business promotion without the ability for the funds to be diverted for other government programs.

In California, WIDs are primarily formed pursuant to the Property and Business Improvement District Law of 1994. This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between WIDs and other special benefit assessment districts is that funds raised are returned to the private non-profit corporation governing the WID.

Management District Plan
The Management District Plan (Attachment 3) includes the proposed boundary of the SCMWID, a service plan, a budget, and a proposed means of governance, dated May 20, 2025. While some of the map boundaries and wineries included in the proposed SCMWID have changed throughout the process, the Management District Plan may not be revised until after the adoption of the resolution by the County of Santa Cruz, scheduled for October 21, 2025.

The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales. Beginning in the second year of the SCMWID term, the assessment rate may be increased by the Owners’ Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales. Beyond year two, the maximum increase or decrease in a year shall be no more than one-half of one percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct to consumer sales revenue on winery sales.

Based on the benefit received, assessments will not be collected on wholesale wine sales, purchases made outside of the state of California, or purchases made pursuant to contracts executed prior to November 1, 2025. Revenue generated from the SCMWID is intended only to provide programs and services for assessed wineries, all of which are located in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit.

Assessment dollars will not be spent on any programs or activities to benefit individual wineries outside of the state of California. Assessment dollars may be spent outside of California to elevate the notoriety of the Santa Cruz Mountains as a premier winery destination, with the desired outcome of increased in-person visits to wineries paying the assessment.

The proposed SCMWID will have a five-year term, beginning November 1, 2025, or as soon as possible thereafter, and ending five years from its start date. The assessment will be implemented beginning November 1, 2025. Once per year, beginning on the anniversary of SCMWID formation, there will be a thirty-day period in which winery owners paying 50% or more of the assessment may protest and begin proceedings to terminate the SCMWID.

The District Administration shall be responsible for collecting the assessment on a quarterly basis from each assessed winery. They shall then forward the assessments to the Santa Cruz

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ITEM NO. 13.

PAGE 4 OF 6
SUBJECT: Resolution to include the Town of Los Gatos in the SCMWID DATE: October 7, 2025
SCMWA, which will have the responsibility of managing SCMWID programs as provided in the Management District Plan. The District Administration shall be paid a fee equal to two percent (2%) of the total amount of assessment collected to cover its costs of collection and administration.

Below are the SCMWID establishment process steps that have been completed to date, with the other jurisdictions’ participation status noted.
 Petition Phase - Petitions in favor of SCMWID formation were submitted by 43 assessed wineries, which represent 57.36% of the total SCMWID assessment. This majority petition allowed the County of Santa Cruz Board of Supervisors to initiate proceedings for SCMWID formation at their August 5, 2025, meeting.
 Resolution of Intention Hearing, August 5, 2025 - Upon the submission of a written petitions signed by the winery owners in the proposed SCMWID who will pay more than 50% of the assessments proposed to be levied, the County of Santa Cruz Board of Supervisors initiated proceedings to establish the SCMWID by the adoption of a resolution expressing its intention to establish the SCMWID (Attachment 4).  Upon adoption of the Resolution of Intention, the County of Santa Cruz Board of Supervisors adopted a Resolution to request consent from all jurisdictions to be included in the proposed SCMWID (Attachment 5). Consent must be received from the jurisdictions prior to the final public hearing for their jurisdiction to be included in the established SCMWID. The final public hearing is scheduled with the County of Santa Cruz Board of Directors on October 21, 2025.
 Pursuant to the Property and Business Improvement District Law of 1994, written notices sent via mail began on August 9, 2025, to the owners of all wineries proposed to be assessed within the SCMWID. Mailing the notice begins a mandatory 45-day period in which assessed winery owners may protest SCMWID formation.  On September 9, 2025, the County of Santa Cruz held a public meeting to allow public testimony on the formation of the SCMWID. This body heard testimony from several businesses in support of the SCMWID, as well as concerns from a couple of winery businesses not located in Los Gatos. No action was required or taken at this meeting.

The presentation shared by the Formation Committee at the meeting is provided with this report (Attachment 6).
 Below is a list of the jurisdictions that have met and adopted a resolution for their respective City, Town, or County to be included in the SCMWID. Staff is unaware of any jurisdictions to date that have declined to adopt the resolution to date.

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ITEM NO. 13.

PAGE 5 OF 6
SUBJECT: Resolution to include the Town of Los Gatos in the SCMWID DATE: October 7, 2025
Jurisdictions in support of the SCMWID: County of San Mateo; County of Santa Clara; City of Woodside; City of Saratoga; City of Scotts Valley; City of Capitola; City of Watsonville; and City of Santa Cruz. The Town of Portola Valley will hear the item on October 8, 2025.
 At the time of this report, the Formation Committee provided the following update:
o The latest update from the petition drive shows 76.8% weighted support for the SCMWID, not including more than a dozen wineries that have voiced support, although have not yet submitted signed petitions.
o The Formation Committee has reached out to engage the Los Gatos Chamber of Commerce on this initiative.
 The final public hearing will be held on October 21, 2025, by the County of Santa Cruz Board of Supervisors to consider adoption of a final resolution that establishes the SCMWID.

CONCLUSION:

Adopt a Resolution granting consent to the County of Santa Cruz to establish the Santa Cruz Mountain Wine Improvement District (SCMWID) and include the Town of Los Gatos within the District.

ALTERNATIVES:

The Town Council may elect to not adopt the resolution, and as such, would not be included in programs and services provided by the SCMWID. Given the timeline for the Formation Committee to return to the County of Santa Cruz Board of Supervisors for their final discussion, staff requests final direction from the Town Council at the October 7, 2025, Town Council meeting.

COORDINATION:

This staff report was developed in coordination with the Town Manager’s and Town Attorney’s Offices, with information and data provided by the SCMWID Formation Committee consisting of representatives from the Santa Cruz Mountains Winegrowers Association and Civitas Advisors.

The Executive Director of the Santa Cruz Mountains Winegrowers Association has provided a letter to the Town Council for their consideration with this item (Attachment 7).

ENVIRONMENTAL ASSESSMENT:

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ITEM NO. 13.

PAGE 6 OF 6
SUBJECT: Resolution to include the Town of Los Gatos in the SCMWID DATE: October 7, 2025
This is not a project defined under CEQA, and no further action is required.

ATTACHMENTS:

1. Draft resolution granting consent to the County of Santa Clara to adopt a resolution to form the Santa Cruz Mountains Wine Improvement District and include the Town of Los Gatos within the district

2. Petitions of Support signed by Gali Vineyards and McCarthy Family Estate Vineyards

3. SCMWID District Management Plan

4. Resolution 158-2025, Requesting Consent to form the SCMWID, adopted by the County of Santa Cruz on August 5, 2025

5. Resolution 159-2025, Requesting Consent from specific jurisdictions for inclusion in the SCMWID, adopted by the County of Santa Cruz on August 5, 2025.

6. Slide presentation provided by the SCMWID Formation Committee to the County of Santa Cruz Board of Directors at its September 9, 2025, meeting.

7. Letter to the Town Council from the Executive Director of the Santa Cruz Mountains Winegrowers Association.

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ITEM NO. 13.

Resolution 20 -xx October 7, 2025
ATTACHMENT 1
RESOLUTION 2025-

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS, GRANTING

CONSENT TO THE COUNTY OF SANTA CRUZ TO FORM THE SANTA CRUZ

MOUNTAINS WINE IMPROVEMENT DISTRICT
WHEREAS, the County of Santa Cruz (County) is beginning the process to form the Santa Cruz Mountains Wine Improvement District (SCMWID) pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the benefit of driving increased business sales directly to assessed wineries; and WHEREAS, the proposed SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville; the towns of Los Gatos, Portola Valley, and Woodside; and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo; and WHEREAS, the County Board of Supervisors has requested consent to form the SCMWID in the Town of Los Gatos with the adoption of County Resolution No. 159-2025, dated August 5, 2025;
NOW, THEREFORE, BE IT FURTHER RESOLVED that the Town Council of the Town of Los Gatos hereby grants consent for the Town of Los Gatos to be included in the SCMWID, for the formation of the SCMWID, and future renewals.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 7th day of October, 2025, by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

SIGNED:
______________________________

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
ATTEST:
__________________________________________

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA

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ITEM NO. 13.

PETITION TO THE COUNTY OF SANTA CRUZ

TO FORM THE SANTA CRUZ MOUNTAINS WINE IMPROVEMENT DISTRICT We petition you to initiate proceedings to form the Santa Cruz Mountains Wine Improvement District in accordance with the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq., for the purpose of providing services as described in the summary of the Management District Plan attached hereto as Exhibit A.

Business Establishment & Address Business Owner
The undersigned is the business owner or the authorized representative of the business owner and is the person legally authorized and entitled to sign this petition.

Owner/Owner Representative Name (printed) Title
Owner/Owner Representative Signature Date
A complete copy of the Management District Plan will be furnished upon request. Requests for a complete copy of the Management District Plan should be made to:

Santa Cruz Mountains Winegrowers Association
Keikilani McKay, Executive Director
335 Spreckels Drive, Suite B
Aptos, California 95003
(831) 685-8463
ATTACHMENT 2 Page 618
ITEM NO. 13.

EXHIBIT A

MANAGEMENT DISTRICT PLAN SUMMARY
Location: The Santa Cruz Mountains Wine Improvement District (SCMWID) includes all wineries, existing and in the future, located generally within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville, the towns of Los Gatos, Portola Valley, and Woodside, and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo as shown on the map below and as described in the detailed boundary description included herein as Exhibit B.

Services: The SCMWID is designed to provide specific benefits directly to payors by increasing winery sales and revenue therefrom. Marketing, brand awareness, business improvement, and special projects efforts will promote assessed wineries in the SCMWID to increase winery sales revenue.

Budget: The total SCMWID annual assessment budget for the initial year of its five (5) year operation is anticipated to be approximately $575,000. A similar budget is expected to apply to subsequent years, but this budget is expected to fluctuate as sales do, as wineries open and close, and if the assessment rate is increased or decreased.

Cost: The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales.

Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales.

The maximum increase or decrease in a year shall be no more than one-half of one percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct to consumer sales revenue on winery sales.

Revenue generated from the SCMWID is intended only to provide programs and services for assessed wineries, all of which are located in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual wineries outside of the state of California. Assessment dollars may be spent outside of California to elevate the notoriety of the Santa Cruz Mountains as a premier winery destination with the desired outcome of increased in-person visitation to wineries paying the assessment.

Collection: The County of Santa Cruz (County) or a third-party collection agency shall be responsible for collecting the assessment on a quarterly basis (including any delinquencies, overdue charges and interest) from each assessed winery located in the boundaries of the SCMWID. The County or a third-party collection agency shall take all reasonable efforts to collect the assessments from each assessed winery.

Duration: The SCMWID will have a five (5) year life, beginning on November 1, 2025, or as soon as possible thereafter, and ending five (5) years from its start date. After five (5) years, the SCMWID may be renewed pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code section 36600 et seq. (94 Law) if winery owners support continuing the SCMWID programs.

Management: The Santa Cruz Mountains Winegrowers Association shall SCMWID
funds and implementing programs and must provide annual reports to the County.

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ITEM NO. 13.

EXHIBIT B

SCMWID BOUNDARY DESCRIPTION
The SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the cities Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville, the towns of Los Gatos, Portola Valley, and Woodside, and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo.

Specifically, the boundaries of the SCMWID are as follows:

Starting at the intersection of State Route 84 and State Route 1, the boundaries proceed south along the State Route 1 until intersecting the AVA boundaries at 122°16'44" W, 37°6'16" N. It follows the boundaries of the AVA boundaries until intersecting the City of Santa Cruz where it goes south along the city boundary line until intersecting with the county line of Santa Cruz County.

It proceeds along the county line until intersecting with State Route 1 where it heads north until intersecting State Route 152. It follows along State Route 152 until 121°41'38" W, 36°59'29" N where it starts to follow the AVA boundary line heading north. When it intersects with the city limits of San Jose it goes south and west around the city limits, until continuing northwest along the AVA lines.

When it intersects with Cinnabar Hills Road at 121°49'7" W, 37°10'28" N. It follows Cinnabar Hills Road and joins Bertram Road where it continues north mering with Almaden Road and continuing to head north. Upon intersecting with the city limits of San Jose and proceeding northwest until intersecting with W Valley Freeway and heading northwest along the W Valley Freeway until intersecting with the boundary line for the city of Campbell and heading south-west until rejoining the boundary for San Jose and heading west. It jumps and continues west when intersecting with the City of Cupertino. At the boundary line joins the AVA and follows the AVA northwest. It avoids all areas that are in the city of Cupertino and heads northwest.

At 122°5'17" W, 37°19'41" N it begins to follow the boundaries of the city of Cupertino again, heading north until merging with Interstate 280 and heading northwest along the line. Upon intersecting the city of Palo Alto, it follows the city boundary line south and around until the coordinates of 122°12'6" W, 37°21'30" N, where the boundaries follow the AVA boundaries heading north until intersecting Alpine Road, where it proceeds northeast. When intersecting with Golden Oak Drive it heads west until turning into Peak Lane and heading south at the intersection of Peak Lane and Cervantes Road and heading east on Cervantes Road.

At the intersection with Westridge Drive it heads south until intersecting with Portola Road. It travels along Portola Road northwest until turning southwest at the intersection of Wayside Road. Once Wayside Road intersects with the AVA boundaries it turns and following the AVA boundaries north. Once it intersects with Woodside Road and Interstate 280 the boundaries head north along Woodside Road until intersecting with Fernside Street where it heads northwest along the city boundary line for Redwood City. At 122°16'46" W, 37°27'37" N, it stops following Redwood City's boundary line and proceeds southwest along the boundary line for the city of Woodside. Once it intersects with Interstate 280 it proceeds northwest along the interstate until intersecting with State Route 92 where it heads west along the highway until reuniting with the AVA boundaries and proceeding southwest along the AVA boundary line to the starting point.

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ITEM NO. 13.

PETITION TO THE COUNTY OF SANTA CRUZ

Santa Cruz Mountains Winegrowers Association
Keikilani McKay, Executive Director
335 Spreckels Drive, Suite B
Aptos, California 95003
(831) 685-8463

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ITEM NO. 13.

EXHIBIT A

Cost: The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales.

Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales.

Management: The Santa Cruz Mountains Winegrowers Association shall SCMWID
funds and implementing programs and must provide annual reports to the County.

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ITEM NO. 13.

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ITEM NO. 13.

EXHIBIT B

Specifically, the boundaries of the SCMWID are as follows:

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ITEM NO. 13.
2025-2030

SANTA CRUZ MOUNTAINS WINE IMPROVEMENT DISTRICT

MANAGEMENT DISTRICT PLAN
May 20, 2025 Prepared pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et seq.

ATTACHMENT 3

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ITEM NO. 13.

Contents
I. OVERVIEW ........................................................................................................................................3 II. BACKGROUND ................................................................................................................................5 III. BOUNDARY.......................................................................................................................................6 IV. ASSESSMENT BUDGET AND SERVICES................................................................................8 A. Annual Service Plan............................................................................................................ 8 B. Annual Budget .................................................................................................................. 10 C. California Constitutional Compliance .............................................................................. 11 D. Assessment........................................................................................................................ 12 E. Overdue Charges and Interest........................................................................................... 13 F. Time and Manner for Collecting Assessments................................................................. 14 V. GOVERNANCE...............................................................................................................................15 A. Owners’ Association......................................................................................................... 15 B. Brown Act and California Public Records Act Compliance ............................................ 15 C. Annual Report................................................................................................................... 15 APPENDIX 1 – LAW....................................................................................................................................16 APPENDIX 2 – ASSESSED WINERIES* ...............................................................................................28 Prepared by
Civitas
(800)999-7781
www.civitasadvisors.com

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ITEM NO. 13.

SCMWID Management District Plan 3
May 20, 2025
I. OVERVIEW
Developed by wineries in the Santa Cruz Mountains and by the Santa Cruz Mountains Winegrowers Association (SCMWA), the Santa Cruz Mountains Wine Improvement District (SCMWID) is an assessment district proposed to provide specific benefits to payors, by funding marketing & brand awareness and business improvement & special projects efforts for assessed wineries. This approach has been used successfully in other wine regions throughout the country to provide the benefit of driving increased sales revenue directly to payors.

Location: The SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville, the towns of Los Gatos, Portola Valley, and Woodside, and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo.

A detailed boundary description and a boundary map are included in Section III of this Management District Plan (Plan).

Cost: The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales. Beginning in the second year of the SCMWID term, the assessment rate may be increased by the Owners’ Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales. The maximum increase or decrease in a year shall be no more than one-half of one percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct to consumer sales revenue on winery sales.

Based on the benefit received, assessments will not be collected on wholesale, purchases made outside of the state of California, or purchases made pursuant to contracts executed prior to November 1, 2025. Revenue generated from the SCMWID is intended only to provide programs and services for assessed wineries, all of which are located in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual wineries outside of the state of California.

Assessment dollars may be spent outside of California to elevate the notoriety of the Santa Cruz Mountains as a premier winery destination with the desired outcome of increased in-person visitation to wineries paying the assessment.

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ITEM NO. 13.

SCMWID Management District Plan 4
May 20, 2025
Collection: The County of Santa Cruz (County) or a third-party collection agency shall be responsible for collecting the assessment on a quarterly basis (including any delinquencies, overdue charges and interest) from each assessed winery located in the boundaries of the SCMWID. The County or a third-party collection agency shall take all reasonable efforts to collect the assessments from each assessed winery.

Management: The SCMWA shall serve as the Owners’ Association to provide improvements and activities for the SCMWID. The Owners’ Association is charged with managing funds and implementing programs in accordance with this Plan, and must provide annual reports to the County.

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ITEM NO. 13.

SCMWID Management District Plan 5
May 20, 2025
II. BACKGROUND
Wine Improvement Districts (WIDs) are an evolution of the traditional Business Improvement District (BID). BIDs utilize the efficiencies of private sector operation in the market-based promotion of business districts. BIDs allow business owners to organize their efforts to increase sales and promotional efforts. Business owners within the district fund a BID, and those funds are used to provide services that the businesses desire and benefit the businesses within the district.

Business Improvement District services may include, but are not limited to:
➢ Marketing of the District
➢ Business Promotion Activities
➢ Infrastructure Improvements
In California, BIDs are formed pursuant to the 94 Law. This law allows for the creation of special benefit assessment districts to raise funds within a specific geographic area. The key difference between BIDs and other special benefit assessment districts is that funds raised are managed by the private non-profit corporation governing the district.

There are many benefits to Business Improvement Districts:
➢ Funds cannot be diverted for other government programs; ➢ Services are customized to fit the needs of each district; ➢ They allow for a wide range of services, including those listed above; ➢ Business Improvement Districts are designed, created and governed by those who will pay the assessment; and
➢ They provide a stable funding source for business promotion.

The 94 Law is provided in Appendix 1 of this document.

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ITEM NO. 13.

SCMWID Management District Plan 6
May 20, 2025
III. BOUNDARY
The SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the cities Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville, the towns of Los Gatos, Portola Valley, and Woodside, and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo. Specifically, the boundaries of the SCMWID are as follows:

When it intersects with Cinnabar Hills Road at 121°49'7" W, 37°10'28" N. It follows Cinnabar Hills Road and joins Bertram Road where it continues north mering with Almaden Road and continuing to head north. Upon intersecting with the city limits of San Jose and proceeding northwest until intersecting with W Valley Freeway and heading northwest along the W Valley Freeway until intersecting with the boundary line for the city of Campbell and heading south-west until rejoining the boundary for San Jose and heading west. It jumps and continues west when intersecting with the City of Cupertino. At 122°4’21" W, 37°18'2" N the boundary line joins the AVA and follows the AVA northwest. It avoids all areas that are in the city of Cupertino and heads northwest.

At 122°5'17" W, 37°19'41" N it begins to follow the boundaries of the city of Cupertino again, heading north until merging with Interstate 280 and heading north west along the line. Upon intersecting the city of Palo Alto it follows the city boundary line south and around until the coordinates of 122°12'6" W, 37°21'30" N, where the boundaries follow the AVA boundaries heading north until intersecting Alpine Road, where it proceeds north east. When intersecting with Golden Oak Drive it heads west until turning into Peak Lane and heading south at the intersection of Peak Lane and Cervantes Road and heading east on Cervantes Road.

Once it intersects with Woodside Road and Interstate 280 the boundaries head north along Woodside Road until intersecting with Fernside Street where it heads north west along the city boundary line for Redwood City. At 122°16'46" W, 37°27'37" N, it stops following Redwood City's boundary line and proceeds southwest along the boundary line for the city of Woodside. Once it intersects with Interstate 280 it proceeds north west along the interstate until intersecting with State Route 92 where it heads west along the highway until reuniting with the AVA boundaries and proceeding southwest along the AVA boundary line to the starting point.

The term “winery” as used herein means: A business, primarily used for the retail marketing and sales of wine and related goods, open to all settings at which wine and related goods can be sold, including but not limited to: publicly available settings, by appointment only reservations, or private and exclusive tastings. The term wine tasting facility includes, but is not limited to, vineyard locations with

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ITEM NO. 13.

SCMWID Management District Plan 7
May 20, 2025
onsite tastings and hospitality and retail rooms on site at producing wineries, which must be agricultural facilities used for the processing (fermentation when combined with any two of the following: crushing, pressing, aging, blending or bottling) of wine grapes into wine or the refermenting of still wine into sparkling wine, as well as stand-alone tasting rooms in commercial areas.

All wine tasting facilities must possess a Type 02 Department of Alcohol Beverage Control license or a Type 17 (Beer and Wine Wholesaler) and Type 20 (Off-Sale Beer and Wine) License combination.

A complete listing of assessed wineries within the SCMWID can be found in Appendix 2. A map of the SCMWID boundaries is shown below.

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ITEM NO. 13.

SCMWID Management District Plan 8
May 20, 2025
IV. ASSESSMENT BUDGET AND SERVICES
A. Annual Service Plan
Assessment funds will be spent to provide specific benefits conferred or privileges granted directly to the payors that are not provided to those not charged, and which do not exceed the reasonable cost to the County of conferring the benefits or granting the privileges. The privileges and services provided with the SCMWID funds are marketing & brand awareness and business improvement & special projects efforts available only to assessed wineries.

A service plan assessment budget has been developed to deliver services that benefit the assessed wineries. A detailed annual assessment budget will be developed and approved by the SCMWA. The chart below illustrates the initial annual assessment budget allocations. The total initial assessment budget is estimated to be $575,000.

Although actual revenues will fluctuate due to market conditions, the proportional allocations of the assessment budget shall remain the same. However, the County and the SCMWA Board shall have the authority to adjust budget allocations between the categories by no more than fifteen percent (15%) of the total budget per year. A description of the proposed improvements and activities for the initial year of operation is below. The same activities are proposed for subsequent years. In the event of a legal challenge against the SCMWID, any and all assessment funds may be used for the costs of defending the SCMWID. In the first year of operation, the costs of creating the SCMWID may be repaid by deducting repayment funds proportionally from budget categories. Repayment costs shall not exceed $75,000.

Each budget category includes all costs related to providing that service. For example, the marketing & brand awareness budget includes the cost of staff time dedicated to overseeing and implementing the marketing & brand awareness program. Staff time dedicated purely to administrative tasks is allocated to the administration & operations portion of the budget. The costs of an individual staff Marketing & Brand
Awareness, 55%,
$316,250
Business Improvement
& Special Projects, 10%,
$57,500
Administration
& Operations,
23%, $132,250
Contingency / Reserve, 10%,
$57,500
Collection Fee, 2%,
$11,500
Initial Annual Assessment Budget - $575,000

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ITEM NO. 13.

SCMWID Management District Plan 9
May 20, 2025
member may be allocated to multiple budget categories. The staffing levels necessary to provide the services below will be determined by the SCMWA on an as-needed basis.

Marketing & Brand Awareness
A marketing & brand awareness program will promote the SCMWID as a premium winegrowing region and as a leader in the global wine community. The marketing & brand awareness program will have a central theme of promoting the SCMWID as a desirable place to experience Santa Cruz Mountains wineries, and as a desirable area to purchase wines and other estate produced products.

The program has the goal of increasing demand for visitation to the winegrowing region, retail sales, affinity for SCMWID grapes and wines, and recognition at and for assessed wineries, and may include but is not limited to the following activities:
• Advertising – across any and all media channels to promote assessed wineries on a local, regional or national level, including but not limited to: digital, print, television, radio and strategic brand partnerships;
• Media Relations – Promoting assessed wineries through development of media relations strategies, including but not limited to: media familiarization tours, proactive media pitching and influencer relations;
• Digital Marketing – Utilizing paid, earned and owned social media to increase awareness of and engagement with assessed wineries;
• Events – Developing and executing special events that attract potential customers to assessed wineries, enhancing community engagement and visibility; • Trade & Industry Engagement – Ensuring representatives are provided the opportunity to attend trade shows, meetings, industry conferences, road shows, and events to promote assessed wineries; Create programs that engage key trade and industry influencers with the Santa Cruz Mountains;
• Print Collateral – Preparing and producing collateral, promotional materials such as brochures, flyers and maps for assessed wineries;
• Brand Enhancement – Brand development initiatives to increase awareness and demand for assessed wineries;
• Consumer Analytics – Identify and leverage consumer demographic, geographic and psychographic data to target messaging that markets Santa Cruz Mountains as a premier, unique wine destination to attract customers to assessed wineries; and • Wine Club Signups – Promote wine club membership for assessed wineries to build customer loyalty and enhance the SCMWID brand.

Business Improvement & Special Projects
The business improvement & special projects program will seek to attract and retain wineries within the SCMWID, and fund special projects designed to promote and benefit the assessed wineries. This program aims to cultivate a thriving wine community by fostering collaboration among producers and enhancing the region’s appeal as a premier destination. Through targeted initiatives, the program will empower wineries to innovate and grow their businesses sustainably. The business improvement & special projects programs may include, but is not limited to:
• Customer Engagement Projects – Develop and execute special projects that drive customer engagement with assessed wineries to increase sales;
• Signage Program – Coordinate local signage for the Santa Cruz Mountains wine region; • Training Programs – Provide training and resources for assessed wineries focused on sales, hospitality, marketing, media relations, and operational best practices to enhance staff effectiveness;

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ITEM NO. 13.

SCMWID Management District Plan 10
May 20, 2025
• Educational Programs – Create educational programs for assessed wineries with the goal of increasing visitation, sales, and brand value;
• Market Research and Evaluation – Conduct comprehensive market research, fund awareness and best practice studies, and maintain a robust district database to evaluate the SCMWID’s visibility and operational success among target market segments; • Guest Communication Support – Assist assessed wineries with the development of guest communications and point-of-sale materials to enhance customer interactions; • Advocacy – Advocate for business-friendly policies that facilitate capital investment and growth opportunities throughout the SCMWID; and
• Liaison Support – Designate personnel who will serve as a liaison between winery owners and government agencies to facilitate growth and business development on assessed wineries.

Administration & Operations
The administration & operations portion of the budget shall be utilized for administrative staffing costs, office costs, advocacy, and other general administrative costs such as insurance, legal, and accounting fees.

Contingency / Reserve
The budget includes a contingency line item to account for lower than anticipated assessments. If there are contingency funds collected, they may be held in a reserve fund or utilized for other programs, administration or renewal costs at the discretion of the Owners’ Association. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Owners’ Association. Contingency/reserve funds may be spent on SCMWID programs or administrative and renewal costs in such proportions as determined by the Owners’ Association.

Collection Fee
The County or a third-party collection agency shall be paid a fee up to two percent (2%) of the amount of assessment collected to cover its costs of collection and administration.

B. Annual Budget
The total five (5) year assessment budget is projected at approximately $575,000 annually, or approximately $4,887,500 through 2030 if maximum assessment rate increases are adopted. This amount may fluctuate as winery sales do, as wineries open and close, and if the assessment rate is increased or decreased pursuant to this Plan.

The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales. Beginning in the second year of the SCMWID term, the assessment rate may be increased by the Owners’ Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales. The maximum increase or decrease in a year shall be no more than one-half of one percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct to consumer sales revenue on winery sales.

The table below demonstrates the estimated maximum budget with the assumption that assessment rate will be increased at the earliest opportunity, as it is a required disclosure, it is not the anticipated course of action. Alternate courses of action may be taken in regard to implementing the assessment rate increase other than what is demonstrated in the chart below, within the parameters of this Plan.

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ITEM NO. 13.

SCMWID Management District Plan 11
May 20, 2025
Estimated Annual Budget if Maximum Assessment Rates are Adopted C. California Constitutional Compliance
The SCMWID assessment is not a property-based assessment subject to the requirements of Proposition 218. Courts have found Proposition 218 limited the term ‘assessments’ to levies on real property.1 Rather, the SCMWID assessment is a business-based assessment, and is subject to Proposition 26. Pursuant to Proposition 26 all levies are a tax unless they fit one of seven exceptions.

Two of these exceptions apply to the SCMWID, a “specific benefit” and a “specific government service.” Both require that the costs of benefits or services do not exceed the reasonable costs to the County of conferring the benefits or providing the services.

1. Specific Benefit
Proposition 26 requires that assessment funds be expended on, “a specific benefit conferred or privilege granted directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of conferring the benefit or granting the privilege.”2 The services in this Plan are designed to provide targeted benefits directly to assessed wineries, and are intended only to provide benefits and services directly to those wineries paying the assessment. These services are tailored not to serve the general public, businesses in general, or parcels of land, but rather to serve the specific wineries within the SCMWID. The activities described in this Plan are specifically targeted to increase sales for assessed wineries within the boundaries of the SCMWID, and are narrowly tailored. SCMWID funds will be used exclusively to provide the specific benefit of increased winery sales revenue directly to the assessees. Assessment funds shall not be used to feature non-assessed wineries in SCMWID programs, or to directly generate sales for non-assessed wineries. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed wineries.

The assessment imposed by this SCMWID is for a specific benefit conferred directly to the payors that is not provided to those not charged. The specific benefit conferred directly to the payors is an increase in winery sales revenue. The specific benefit of an increase in sales revenue for assessed wineries will be provided only to wineries paying the district assessment, with marketing, brand awareness, business improvement, and special projects efforts promoting wineries paying the SCMWID assessment. The marketing & brand awareness and business improvement & special projects efforts programs will be designed to increase sales revenue at each assessed winery. Because 1 Howard Jarvis Taxpayers Association v. City of San Diego (1999) 72 Cal App. 4th 230 2 Cal. Const. art XIII C § 1(e)(1)
Year
Marketing &
Brand
Awareness
Business
Improvement
& Special
Projects
Administration
& Operations
Contingency/
Reserve
Collection
Fee
Total
2025-2026 $316,250 $57,500 $132,250 $57,500 $11,500 $575,000 2026-2027 $474,375 $86,250 $198,375 $86,250 $17,250 $862,500 2027-2028 $632,500 $115,000 $264,500 $115,000 $23,000 $1,150,000 2028-2029 $632,500 $115,000 $264,500 $115,000 $23,000 $1,150,000 2029-2030 $632,500 $115,000 $264,500 $115,000 $23,000 $1,150,000 Total $2,688,125 $488,750 $1,124,125 $488,750 $97,750 $4,887,500

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ITEM NO. 13.

SCMWID Management District Plan 12
May 20, 2025
they are necessary to provide the marketing & brand awareness and business improvement & special projects efforts that specifically benefit the assessed wineries, the administration and contingency services also provide the specific benefit of increased sales revenue to the wineries.

Although the SCMWID, in providing specific benefits to payors, may produce incidental benefits to non-paying businesses, the incidental benefit does not preclude the services from being considered a specific benefit. The legislature has found that, “A specific benefit is not excluded from classification as a ‘specific benefit’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific benefit to the payor.”3

2. Specific Government Service
The assessment may also be utilized to provide, “a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product.” 4 The legislature has
recognized that marketing and promotions services like those to be provided by the SCMWID are government services within the meaning of Proposition 265. Further, the legislature has determined that “a specific government service is not excluded from classification as a ‘specific government service’ merely because an indirect benefit to a nonpayor occurs incidentally and without cost to the payor as a consequence of providing the specific government service to the payor.”6

3. Reasonable Cost
SCMWID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. The full amount assessed will be used to provide the services described herein. Funds will be managed by the SCMWA and reports submitted on an annual basis to the County. Only assessed wineries will be featured in marketing materials, receive sales leads generated from SCMWIDfunded activities, be featured in advertising campaigns, and benefit from other SCMWID-funded services. The assessed winery list (Appendix 2) was compiled from records provided by each jurisdiction and complies with the requirements of the 94 Law. Pursuant to Streets and Highways Code Section 36615, the County Board of Supervisors’ (Board of Supervisors) determination of ownership is final and conclusive, with no obligation to obtain other information. Non-assessed wineries will not receive these, nor any other, SCMWID-funded services and benefits.

The SCMWID -funded programs are targeted directly to benefit assessed wineries. SCMWID funds shall only be spent to benefit the assessed wineries, and shall not be spent on that portion of any program which directly generates incidental sales for non-assessed wineries.

D. Assessment
The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales. Beginning in the second year of the SCMWID term, the assessment rate may be increased by the Owners’ Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales. The maximum increase or decrease in a year shall be no more than one-half of one percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct to consumer sales revenue on winery sales.
3 Government Code § 53758(a)
4 Cal. Const. art XIII C § 1(e)(2)
5 Government Code § 53758(b)
6 Government Code § 53758(b)

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ITEM NO. 13.

SCMWID Management District Plan 13
May 20, 2025
Based on the benefit received, assessments will not be collected on wholesale, purchases made outside of the state of California or purchases made pursuant to contracts executed prior to November 1, 2025. Revenue generated from the SCMWID is intended only to provide programs and services for assessed wineries, all of which are located in California. Sales made outside of the state of California are not subject to assessment due to a lack of benefit. Assessment dollars will not be spent on any programs or activities to benefit individual wineries outside of the state of California. Assessment dollars may be spent outside of California to elevate the notoriety of the Santa Cruz Mountains as a premier winery destination with the desired outcome of increased in-person visitation to wineries paying the assessment.

The assessment was calculated based on the total cost of the activities to be provided for the benefit of the wineries within the SCMWID with costs allocated based on the proportional benefit conferred to each winery. Activities funded by the SCMWID are specifically targeted to increase winery sales revenue at assessed wineries. All winery sales do not represent the same benefit to the payors. For example, a higher priced winery sale is of greater benefit than a lower priced winery sale because the assessee derives greater revenue. To account for this benefit differential and to make sure the benefits are proportional, an assessment formula based on a percentage of revenue has been selected. The proposed formula accurately reflects greater benefit to assessed wineries with higher priced winery sales.

The term “gross direct to consumer sales revenue” as used herein means: all direct-to-consumer (DTC) sales of wine, wine club shipments (whether shipped or picked up), tasting room sales, merchandise, food, revenue from orders placed via telemarketing, telephone, online, email, whether carried out at the time of purchase, shipped or picked up at a later date (pre-sales). “Gross direct to consumer sales revenue” shall not include any sales made outside of the state of California.

The assessment is levied upon and a direct obligation of the assessed winery. However, the assessed winery may, at its discretion, pass the assessment on to customers. The amount of assessment, if passed on to each customer, shall be disclosed in advance and separately stated from the amount charged and any other applicable taxes, and each customer shall receive a receipt for payment from the business. If the SCMWID assessment is identified separately it shall be disclosed as the “SCMWID Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed winery even if it is passed on to customers. The California Department of Tax and Fee Administration (CDTFA) issued a written opinion that state sales tax applies to the revenue generated from business improvement district (BID) assessments on items where state sales tax is levied. In light of CDTFA’s opinion, businesses that pay both state sales tax and SCMWID assessments on sales are advised to collect sales tax on the assessment revenue.

Bonds shall not be issued.

E. Overdue Charges and Interest
The SCMWID shall reimburse the County or third-party collection agency for any costs associated with collecting unpaid assessments.

1. Original Delinquency
Any winery that fails to remit any assessment imposed by this Plan within the time required shall pay an overdue charge of ten percent (10%) of the amount of the assessment in addition to the assessment.

2. Continued Delinquency

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ITEM NO. 13.

SCMWID Management District Plan 14
May 20, 2025
Any winery that fails to remit any delinquent remittance on or before a period of thirty (30) days following the date on which the remittance first became delinquent shall pay a second delinquency overdue charge of ten percent (10%) of the assessment in addition to the assessment and the ten percent (10%) overdue charge first imposed.

3. Fraud
If the County or third-party collection agency determines that the nonpayment of any remittance due under this article is due to fraud, an overdue charge of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the overdue charges stated in subsections one (1) and two (2) of this section.

4. Interest
In addition to the overdue charges imposed, any winery who fails to remit any assessment imposed by this section shall pay interest at the rate of one-quarter of one percent (0.25%) per month or fraction thereof on the amount of the assessment, exclusive of overdue charges, from the date on which the remittance first became delinquent until paid.

F. Time and Manner for Collecting Assessments
The SCMWID assessment will be implemented beginning November 1, 2025 or as soon as possible thereafter, and ending five (5) years from its start date. The County or a third-party collection agency will be responsible for collecting the assessment on a quarterly basis (including any delinquencies, overdue charges and interest) from each winery located in each jurisdiction within the SCMWID. The County or a third-party collection agency shall take all reasonable efforts to collect the assessments from each winery. The County or a third-party collection agency shall forward the assessments collected to the Owners’ Association.

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ITEM NO. 13.

SCMWID Management District Plan 15
May 20, 2025
V. GOVERNANCE
A. Owners’ Association
The Board of Supervisors, through adoption of this Plan, has the right, pursuant to Streets and Highways Code §36651, to identify the body that shall implement the proposed program, which shall be the Owners’ Association of the SCMWID as defined in Streets and Highways Code §36612. The Board of Supervisors has determined that SCMWA shall serve as the Owners’ Association for the SCMWID.

B. Brown Act and California Public Records Act Compliance An Owners’ Association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. The Owners’ Association is, however, subject to government regulations relating to transparency, namely the Ralph M. Brown Act and the California Public Records Act. These regulations are designed to promote public accountability. The Owners’ Association acts as a legislative body under the Ralph M. Brown Act (Government Code §54950 et seq.). Thus, meetings of the SCMWA Board and certain committees must be held in compliance with the public notice and other requirements of the Brown Act.

Accordingly, the Owners’ Association shall publicly report any action taken and the vote or abstention on that action of each member present for the action. The Owners’ Association is also subject to the record keeping and disclosure requirements of the California Public Records Act.

C. Annual Report
The SCMWA shall present an annual report at the end of each year of operation to the Board of Supervisors pursuant to Streets and Highways Code §36650 (see Appendix 1). The annual report shall include:
• Any proposed changes in the boundaries of the improvement district or in any benefit zones or classification of businesses within the district.
• The improvements and activities to be provided for that fiscal year. • An estimate of the cost of providing the improvements and the activities for that fiscal year. • The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for that fiscal year.
• The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
• The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.

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ITEM NO. 13.

SCMWID Management District Plan 16
May 20, 2025
APPENDIX 1 – LAW
CURRENT THROUGH ALL LEGISLATION OF THE 2024 REGULAR AND SPECIAL SESSIONS

STREETS AND HIGHWAYS CODE
DIVISION 18. PARKING
PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions
ARTICLE 1. Declarations
36600. Citation of part

This part shall be known and may be cited as the “Property and Business Improvement District Law of 1994.” 36601. Legislative findings and declarations; Legislative guidance

The Legislature finds and declares all of the following:
(a) Businesses located and operating within business districts in some of this state’s communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements.
(d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits:
(1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the total incidence of violent crimes within the 30 districts studied.
(2) Job creation.
(3) Business attraction.
(4) Business retention.
(5) Economic growth.
(6) New investments.
(f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property-based districts. Article XIII D of the Constitution provides that property-based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature’s guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property-based districts.
(1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property-based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not assessed. Therefore, for special benefits to exist as a separate and distinct category from general benefits, the incidental or collateral effects of those special benefits are inherently part of those

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ITEM NO. 13.

SCMWID Management District Plan 17
May 20, 2025
special benefits. The mere fact that special benefits produce incidental or collateral effects that benefit property or persons not assessed does not convert any portion of those special benefits or their incidental or collateral effects into general benefits. (3) It is of the utmost importance that property-based districts created under this act have clarity regarding restrictions on assessments they may levy and the proper determination of special benefits. Legislative clarity with regard to this act will provide districts with clear instructions and courts with legislative intent regarding restrictions on property-based assessments, and the manner in which special benefits should be determined.
36602. Purpose of part

The purpose of this part is to supplement previously enacted provisions of law that authorize cities to levy assessments within property and business improvement districts, to ensure that those assessments conform to all constitutional requirements and are determined and assessed in accordance with the guidance set forth in this act.

This part does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. 36603. Preemption of authority or charter city to adopt ordinances levying assessments

Nothing in this part is intended to preempt the authority of a charter city to adopt ordinances providing for a different method of levying assessments for similar or additional purposes from those set forth in this part. A property and business improvement district created pursuant to this part is expressly exempt from the provisions of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 (commencing with Section 2800)).
36603.5. Part prevails over conflicting provisions

Any provision of this part that conflicts with any other provision of law shall prevail over the other provision of law, as to districts created under this part.
36604. Severability

This part is intended to be construed liberally and, if any provision is held invalid, the remaining provisions shall remain in full force and effect. Assessments levied under this part are not special taxes.

ARTICLE 2. Definitions
36606. “Activities”

“Activities” means, but is not limited to, all of the following that benefit businesses or real property in the district:
(a) Promotion of public events.
(b) Furnishing of music in any public place.
(c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Other services provided for the purpose of conferring special benefit upon assessed real property or specific benefits upon assessed businesses located in the district. 36606.5. “Assessment”

“Assessment” means a levy for the purpose of acquiring, constructing, installing, or maintaining improvements and providing activities that will provide certain benefits to properties or businesses located within a property and business improvement district.
36607. “Business”

“Business” means all types of businesses and includes financial institutions and professions.

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ITEM NO. 13.

SCMWID Management District Plan 18
May 20, 2025
36608. “City”

“City” means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. “City council”

“City council” means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. “Clerk”

“Clerk” means the clerk of the legislative body.
36609.5. “General benefit”

“General benefit” means, for purposes of a property-based district, any benefit that is not a “special benefit” as defined in Section 36615.5.
36610. “Improvement”

“Improvement” means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following:
(a) Parking facilities.
(b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms.
(d) Lighting and heating facilities.
(e) Decorations.
(f) Parks.
(g) Fountains.
(h) Planting areas.
(i) Closing, opening, widening, or narrowing of existing streets. (j) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls.
(l) Rehabilitation or removal of existing structures.
36611. “Management district plan”; “Plan”

“Management district plan” or “plan” means a proposal as defined in Section 36622. 36612. “Owners’ association”

“Owners’ association” means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners’ association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners’ association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners’ association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code), for all records relating to activities of the district. 36614. “Property”

“Property” means real property situated within a district.

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ITEM NO. 13.

SCMWID Management District Plan 19
May 20, 2025
36614.5. “Property and business improvement district”; “District”

“Property and business improvement district,” or “district,” means a property and business improvement district established pursuant to this part.
36614.6. “Property-based assessment”

“Property-based assessment” means any assessment made pursuant to this part upon real property. 36614.7. “Property-based district”

“Property-based district” means any district in which a city levies a property-based assessment. 36615. “Property owner”; “Business owner”; “Owner”

“Property owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to be the owner of land by the city council. “Business owner” means any person recognized by the city as the owner of the business. “Owner” means either a business owner or a property owner. The city council has no obligation to obtain other information as to the ownership of land or businesses, and its determination of ownership shall be final and conclusive for the purposes of this part. Wherever this part requires the signature of the property owner, the signature of the authorized agent of the property owner shall be sufficient. Wherever this part requires the signature of the business owner, the signature of the authorized agent of the business owner shall be sufficient. 36615.5. “Special benefit”

(a) “Special benefit” means, for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property-based districts even if those incidental or collateral effects benefit property or persons not assessed. Special benefit excludes general enhancement of property value. (b) “Special benefit” also includes, for purposes of a property-based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefits does not make the benefits general. 36616. “Tenant”

“Tenant” means an occupant pursuant to a lease of commercial space or a dwelling unit, other than an owner.

ARTICLE 3. Prior Law
36617. Alternate method of financing certain improvements and activities; Effect on other provisions

This part provides an alternative method of financing certain improvements and activities. The provisions of this part shall not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or activities or the raising of revenue for these purposes. Every improvement area established pursuant to the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500) of this division) is valid and effective and is unaffected by this part.

CHAPTER 2. Establishment
36620. Establishment of property and business improvement district

A property and business improvement district may be established as provided in this chapter. 36620.5. Requirement of consent of city council

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ITEM NO. 13.

SCMWID Management District Plan 20
May 20, 2025
A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district

(a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following:
(1) A map showing the boundaries of the district.
(2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request.
(c) The resolution of intention described in subdivision (a) shall contain all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623.
36622. Contents of management district plan

The management district plan shall include, but is not limited to, all of the following:
(a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries.
(b) The name of the proposed district.
(c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the estimated cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year’s proposed improvements, maintenance, and activities

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ITEM NO. 13.

SCMWID Management District Plan 21
May 20, 2025
and a statement that the same improvements, maintenance, and activities are proposed for subsequent years shall satisfy the requirements of this subdivision.
(e) The total annual amount proposed to be expended for improvements, maintenance, or activities, and debt service in each year of operation of the district. If the assessment is levied on businesses, this amount may be estimated based upon the assessment rate. If the total annual amount proposed to be expended in each year of operation of the district is not significantly different, the amount proposed to be expended in the initial year and a statement that a similar amount applies to subsequent years shall satisfy the requirements of this subdivision.
(f) The proposed source or sources of financing, including the proposed method and basis of levying the assessment in sufficient detail to allow each property or business owner to calculate the amount of the assessment to be levied against their property or business. The plan also shall state whether bonds will be issued to finance improvements.
(g) The time and manner of collecting the assessments.
(h) The specific number of years in which assessments will be levied. In a new district, the maximum number of years shall be five. Upon renewal, a district shall have a term not to exceed 10 years.

Notwithstanding these limitations, a district created pursuant to this part to finance capital improvements with bonds may levy assessments until the maximum maturity of the bonds. The management district plan may set forth specific increases in assessments for each year of operation of the district. (i) The proposed time for implementation and completion of the management district plan. (j) Any proposed rules and regulations to be applicable to the district. (k)
(1) A list of the properties or businesses to be assessed, including the assessor’s parcel numbers for properties to be assessed, and a statement of the method or methods by which the expenses of a district will be imposed upon benefited real property or businesses, in proportion to the benefit received by the property or business, to defray the cost thereof. (2) In a property-based district, the proportionate special benefit derived by each identified parcel shall be determined exclusively in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the activities. An assessment shall not be imposed on any parcel that exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Only special benefits are assessable, and a property-based district shall separate the general benefits, if any, from the special benefits conferred on a parcel. Parcels within a property-based district that are owned or used by any city, public agency, the State of California, or the United States shall not be exempt from assessment unless the governmental entity can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit. The value of any incidental, secondary, or collateral effects that arise from the improvements, maintenance, or activities of a propertybased district and that benefit property or persons not assessed shall not be deducted from the entirety of the cost of any special benefit or affect the proportionate special benefit derived by each identified parcel.
(3) In a property-based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred, but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit. (l) In a property-based district, a detailed engineer’s report prepared by a registered professional engineer certified by the State of California supporting all assessments contemplated by the management district plan.
(m) Any other item or matter required to be incorporated therein by the city council. 36623. Procedure to levy assessment

(a) If a city council proposes to levy a new or increased property assessment, the notice and protest and hearing procedure shall comply with Section 53753 of the Government Code. (b) If a city council proposes to levy a new or increased business assessment, the notice and protest and hearing procedure shall comply with Section 54954.6 of the Government Code, except that notice shall be

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ITEM NO. 13.

SCMWID Management District Plan 22
May 20, 2025
mailed to the owners of the businesses proposed to be assessed. A protest may be made orally or in writing by any interested person. Every written protest shall be filed with the clerk at or before the time fixed for the public hearing. The city council may waive any irregularity in the form or content of any written protest. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest shall contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest.

If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments

At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation

(a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following:
(1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district.
(4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received.
(5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district.

Notwithstanding the foregoing, improvements and activities that must be provided outside the

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ITEM NO. 13.

SCMWID Management District Plan 23
May 20, 2025
district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded by the proposed assessments, and, for a property-based district, that property within the district will receive a special benefit.
(8) In a property-based district, the total amount of all special benefits to be conferred on the properties within the property-based district.
(b) The adoption of the resolution of formation and, if required, recordation of the notice and map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years referred to in the management district plan.
36627. Notice and assessment diagram

Following adoption of the resolution establishing district assessments on properties pursuant to Section 36625, the clerk shall record a notice and an assessment diagram pursuant to Section 3114. No other provision of Division 4.5 (commencing with Section 3100) applies to an assessment district created pursuant to this part. 36628. Establishment of separate benefit zones within district; Categories of businesses

The city council may establish one or more separate benefit zones within the district based upon the degree of benefit derived from the improvements or activities to be provided within the benefit zone and may impose a different assessment within each benefit zone. If the assessment is to be levied on businesses, the city council may also define categories of businesses based upon the degree of benefit that each will derive from the improvements or activities to be provided within the district and may impose a different assessment or rate of assessment on each category of business, or on each category of business within each zone. 36628.5. Assessments on businesses or property owners

The city council may levy assessments on businesses or on property owners, or a combination of the two, pursuant to this part. The city council shall structure the assessments in whatever manner it determines corresponds with the distribution of benefits from the proposed improvements, maintenance, and activities, provided that any propertybased assessment conforms with the requirements set forth in paragraph (2) of subdivision (k) of Section 36622. 36629. Provisions and procedures applicable to benefit zones and business categories

All provisions of this part applicable to the establishment, modification, or disestablishment of a property and business improvement district apply to the establishment, modification, or disestablishment of benefit zones or categories of business. The city council shall, to establish, modify, or disestablish a benefit zone or category of business, follow the procedure to establish, modify, or disestablish a property and business improvement district. 36630. Expiration of district; Creation of new district

If a property and business improvement district expires due to the time limit set pursuant to subdivision (h) of Section 36622, a new management district plan may be created and the district may be renewed pursuant to this part.

CHAPTER 3. Assessments
36631. Time and manner of collection of assessments; Delinquent payments

The collection of the assessments levied pursuant to this part shall be made at the time and in the manner set forth by the city council in the resolution levying the assessment. Assessments levied on real property may be collected at the same time and in the same manner as for the ad valorem property tax, and may provide for the same lien priority and penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties.

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ITEM NO. 13.

SCMWID Management District Plan 24
May 20, 2025
36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property

(a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part.
(b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment

The validity of an assessment levied under this part shall not be contested in an action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36625. An appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.
36634. Service contracts authorized to establish levels of city services

The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan

The owners’ association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention

(a) Upon the written request of the owners’ association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following:
(1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing.
(2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification.
(b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention.
36637. Reflection of modification in notices recorded and maps

Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. 36638. Assessment as government imposed fee on Civ C § 1770 transaction [Operative July 1, 2024]

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ITEM NO. 13.

SCMWID Management District Plan 25
May 20, 2025
(a) A business assessment pursuant to this part is a fee imposed by a government on the transaction for purposes of paragraph (29) of subdivision (a) of Section 1770 of the Civil Code. (b) This section shall become operative on July 1, 2024.

CHAPTER 3.5. Financing
36640. Bonds authorized; Procedure; Restriction on reduction or termination of assessments

(a) The city council may, by resolution, determine and declare that bonds shall be issued to finance the estimated cost of some or all of the proposed improvements described in the resolution of formation adopted pursuant to Section 36625, if the resolution of formation adopted pursuant to that section provides for the issuance of bonds, under the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500)) or in conjunction with Marks-Roos Local Bond Pooling Act of 1985 (Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code). Either act, as the case may be, shall govern the proceedings relating to the issuance of bonds, although proceedings under the Bond Act of 1915 may be modified by the city council as necessary to accommodate assessments levied upon business pursuant to this part. (b) The resolution adopted pursuant to subdivision (a) shall generally describe the proposed improvements specified in the resolution of formation adopted pursuant to Section 36625, set forth the estimated cost of those improvements, specify the number of annual installments and the fiscal years during which they are to be collected. The amount of debt service to retire the bonds shall not exceed the amount of revenue estimated to be raised from assessments over 30 years.
(c) Notwithstanding any other provision of this part, assessments levied to pay the principal and interest on any bond issued pursuant to this section shall not be reduced or terminated if doing so would interfere with the timely retirement of the debt.

CHAPTER 4. Governance
36650. Report by owners’ association; Approval or modification by city council

(a) The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. The owners’ association’s first report shall be due after the first year of operation of the district. The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to the property and business improvement district by name, specify the fiscal year to which the report applies, and, with respect to that fiscal year, shall contain all of the following information:
(1) Any proposed changes in the boundaries of the property and business improvement district or in any benefit zones or classification of property or businesses within the district. (2) The improvements, maintenance, and activities to be provided for that fiscal year. (3) An estimate of the cost of providing the improvements, maintenance, and activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient detail to allow each real property or business owner, as appropriate, to estimate the amount of the assessment to be levied against his or her property or business for that fiscal year.
(5) The estimated amount of any surplus or deficit revenues to be carried over from a previous fiscal year.
(6) The estimated amount of any contributions to be made from sources other than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified. Any modification shall be made pursuant to Sections 36635 and 36636.

The city council shall not approve a change in the basis and method of levying assessments that would impair an authorized or executed contract to be paid from the revenues derived from the levy of

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ITEM NO. 13.

SCMWID Management District Plan 26
May 20, 2025
assessments, including any commitment to pay principal and interest on any bonds issued on behalf of the district.
36651. Designation of owners’ association to provide improvements, maintenance, and activities

The management district plan may, but is not required to, state that an owners’ association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners’ association, the city shall contract with the designated nonprofit corporation to provide services.

CHAPTER 5. Renewal
36660. Renewal of district; Transfer or refund of remaining revenues; District term limit

(a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district.

CHAPTER 6. Disestablishment
36670. Circumstances permitting disestablishment of district; Procedure

(a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances:
(1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment.
(2) During the operation of the district, there shall be a 30-day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30-day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30-day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention.
36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district

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ITEM NO. 13.

SCMWID Management District Plan 27
May 20, 2025
(a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired with the revenues, or from bond reserve or construction funds, shall be refunded to the owners of the property or businesses then located and operating within the district in which assessments were levied by applying the same method and basis that was used to calculate the assessments levied in the fiscal year in which the district is disestablished or expires. All outstanding assessment revenue collected after disestablishment shall be spent on improvements and activities specified in the management district plan. (b) If the disestablishment occurs before an assessment is levied for the fiscal year, the method and basis that was used to calculate the assessments levied in the immediate prior fiscal year shall be used to calculate the amount of any refund.

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ITEM NO. 13.

SCMWID Management District Plan 28
May 20, 2025
APPENDIX 2 – ASSESSED WINERIES*
Owner Name Business Name Address City, State,
Zip
Doon To Earth 10 Parade St., Suite
B
Aptos CA
95003
Armitage Wines 105 C Post Office
Dr
Aptos CA
95003
Salamandre Wine Cellars
L-Pship
108 Don Carlos Dr Aptos CA
95003
Saison Winery (Formerly
Partage)
11025 Alba Rd Ben Lomond
CA 95005
Sandar And Hem Wines 111 Corte Madera
Rd
Portola Valley
CA 94028
Kissed By An Angel
Wines
1210 Mount
Hermon Road
Scotts Valley
CA 95066
Left Bend Winery 12536 Spring
Blossom Ct.

Saratoga CA
95070
Maison Areion 140 Sunrise Drive Woodside CA
94062
Roudon-Smith Winery 14572 Big Basin
Way, Suite A
Saratoga CA
95070
Regan Vineyards &
Winery
1610 Green Valley
Rd
Corralitos CA
95076
La Vida Bella Vineyard 1624 Chardonnay
Ridge Rd
Aptos CA
95003
Ridge Vineyards 17100 Montebello
Rd
Cupertino CA
95014
Kings Mountain
Vineyards
187 Kings
Mountain Road
Woodside CA
94062
Lexington Wine
Co./Thomas Fogarty
Winery & Vineyards
19501 Skyline Blvd Woodside CA
94062
Mccarthy Family Estate
Vineyards
20108 Foster Road Los Gatos CA
95033
Birichino 204 Church Street Santa Cruz CA
95060
Gali Vineyards 21 W. Main St. Los Gatos CA
95030
Sante Arcangeli Family
Wines
216-A Stage Road Pescadero CA
94060
Domaine Eden 23000 Congress
Springs Rd
Saratoga CA
95070
Silver Mountain Vineyards 269 Silver
Mountain Dr
Los Gatos CA
95033
Santa Cruz Mountain
Vineyard
334 Ingalls St Suite
A
Santa Cruz CA
95060

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ITEM NO. 13.

SCMWID Management District Plan 29
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Equinox 334 Ingalls St, Unit
C
Santa Cruz CA
95060
Aptos Vineyard 400 Belle Monti
Avenue
Aptos CA
95003
Alfaro Family Vineyards
& Winery
420 Hames Road Corralitos CA
95076
Wargin Wines 5015 Soquel Dr Soquel CA
95073
Clos De La Tech 535 Eastview Way Woodside CA
94062
Windy Oaks Estate
Vineyards & Winery
550 Hazel Dell Rd Corralitos CA
95076
Neely Wine 555 Portola Road Portola Valley
CA 94028
Ferrari Ranch Wines 65 Magnifico Vita
Lane
Corralitos CA
95076
Charmant Vineyards 800 Larsen Road Aptos CA
95003
3P Winery L.L.C. 3P Winery 3490 Soquel San
Jose Rd
Soquel CA
95073
Alamitos Winery 23505 Alamitos Rd San Jose CA
95120
Amy Dilly Preaseau and
Jacques Noel Preaseau
Valley Vista Vineyards 110 Valley View
Rd
Watsonville
CA 95076
Anatum Winery Broaddus, Christopher
James
371 Falcon View
Terr
Watsonville
CA 95076
Aptos Creek Vineyard Aptos Creek Vineyard 520 Nisene
Meadows Ct
Aptos CA
95003
Aptos Vineyard Aptos Vineyard, LLC 105 Post Office Dr
Ste C
Aptos CA
95003-3953
Aptos Vineyard, LLC Aptos Vineyard 369 Silver
Mountain Dr
Los Gatos CA
95033
Armitage Wines Corp. Armitage Wines Corp 705 Canham Rd Scotts Valley CA 95066
Arpent, LLC Birichino 825 Walnut Ave Santa Cruz CA
95060
Bargetto's Santa Cruz
Winery, Inc.

Bargetto 3535 N Main St Soquel CA
95073
Beauregard Vineyards
LLC/Partage Wine Co. LLC
Beauregard
Vineyards/Partage Wine
Co. LLC
10 Pine Flat Rd Santa Cruz CA
95060
Beauregard, Andre Jacques West Cliff Wines 704 Soquel Ave Ste B
Santa Cruz CA
95062-2333
Bhoomanchi Vineyards LLC Bhoomanchi Vineyards 369 Silver Mountain Dr
Los Gatos CA
95033

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ITEM NO. 13.

SCMWID Management District Plan 30
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Big Basin Vineyards Big Basin Vineyards LLC 525 Pacific Ave Santa Cruz CA 95060-7175
Big Basin Vineyards LLC Big Basin Vineyards 830 Memory Ln Boulder Creek CA
95006
Bottle Jack Wines Ritchey Iv, John Lloyd 328 Ingalls St D Santa Cruz CA 95060-5882
Brooks, Thomas Edwin Tom Brooks Winery 90 Country Estates Dr
Santa Cruz CA
95060-9776
Brosseau Wines LLC First Growth Wine
Company
22090 Mt Eden
Road
Saratoga CA
95070
Bruce Cantz Four Gates Winery 503 Happy Valley
Rd
Santa Cruz CA
95065
Charmant 800 Larsen Road Aptos CA
95003
Christopher Broaddus Anatum 375 Falcon View
Ter
Watsonville
CA 95076
Clos De La Tech LLC Clos De La Tech 1000 Fern Hollow
Rd
La Honda CA
94020
Clos Tita Winery Estrada, David S 4 Kendall Ln Santa Cruz CA 95066
Coastal Range Vineyards Coastal Range Vineyards,
Inc.
420 Lost Pear Way
A 24X36 Structure
Santa Cruz CA
95065-9725
Coastal Range Vineyards,
Inc.

Inversion Wines 75 Mt Hermon Rd Scotts Valley,
CA 95066
Corralitos Ridge Vineyards
Corporation/Private Vine
Wines, LLC
Corralitios Ridge
Winery
815 Almar Ave
Unit H
Santa Cruz CA
95060
Craig, Anthony Sonnet Wine Cellars 369 Silver
Mountain Dr
Los Gatos CA
95033
David Bruce Winery, Inc. David Bruce Winery 21439 Bear Creek Rd
Los Gatos CA
95033
David Lee Moulton Burrell Schoolvineyards 24060 Summit Rd Los Gatos CA 95033
Dee Vine Wines Dee Vine Wines 34 Big Tree Wy Woodside CA 94062-3775
Devincenzi Cellars LLC/A
& A Los Gatos Winery LLC
24572 Hutchinson
Rd
Los Gatos CA
95033
Donald E. Naumann Naumann Vineyards 16505 Montebello
Rd
Cupertino CA
95014
Dorsa Management
Company, LLC
La Rusticana D'Orsa 15680 Kennedy Rd Los Gatos CA
95032
Equinox Jackson, Barry Cook 427 Swift St # C Santa Cruz CA 95062
Everett Family Farm LLC Everett Family Farm, LLC 2119 Old San Jose Rd
Soquel CA
95073

Page 655 ends

ITEM NO. 13.

SCMWID Management District Plan 31
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Farm Day Family Winery,
LLC
Farm Day Family Winery,
LLC
18157 Wagner Rd Los Gatos CA
95032-6619
Fernwood Cellars, Inc. Fernwood Cellars, Inc. 7137 Redwood Retreat Rd
Gilroy CA
95020
Florez Wines J. G. Jelks Wines L.L.C. 2487 Freedom
Blvd Unit 3
Watsonville
CA 95076-
1049
Full Circle Wines LLC Full Circle Wines 7090 Mcadams Ln Felton CA 95018-9454
Gali Vineyards, Inc. Gali Vineyards 362 Old Smith Rd Watsonville CA 95076
Garage Winemaker LLC Baccarossa 19620 Redberry Dr Los Gatos CA 95303
Garrod Trust Cooper-Garrod Vineyards 22645 Garrod Rd Saratoga CA 95070
Ghost Oaks Winery Inc. El Vaquero Winery 18 Hangar Way
Unit C
Watsonville
CA 95076
Ghost Oaks Winery, Inc. El Vaquero Winery 2901 Freedom
Blvd
Corralitos CA
95076
Gliessman, Stephen Richard Condors Hope Ranch 144 De La Costa Ave
Santa Cruz CA
95060
Green Earth Zayante Green Earth Liangs Inc 420 Old Mount Rd Felton CA 95018
Griffin Hill Vineyards, LLC 18035 Skyline Blvd Los Gatos CA 95033
Hallcrest Vineyards, Inc. Hallcrest Vineyards 379 Felton Empire Rd
Felton CA
95018
Hartmann, Robert Frank Las Nietas Vineyard 335 Via Concha Aptos CA 95003-5604
Heart O The Mountain Heart O The Mountain
LLC
705 Canham Rd Scotts Valley
CA 95066-
2729
Henry M. And Linda J.

Mchenry
Mchenry Vineyard 6821 Bonny Doon
Rd
Santa Cruz CA
95060
Hicks, Alan Ainsley Ainsley Family Vineyard 2805 Pleasant Valley Rd
Aptos CA
95003-9785
Hillcrest Winery Rexford Winery 429 Ingalls St Santa Cruz CA 95060
Hoffacker, Bernhard Joseph Portola Hills Vineyard 801 La Honda Rd Woodside CA 94062-4808
Hovis, Linda Closs Linda Vista Wines 118 Via Novella Aptos CA 95003
Hwy 9 Winery, LLC Hwy 9 Winery 120 Gail Dr Felton CA
95018-9631

Page 656 ends

ITEM NO. 13.

SCMWID Management District Plan 32
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Integrity Wines, Lp, Integrity
Wines, LLC, Gp/Reya
Cellars, LLC
12 Hands Winery/Reya
Cellars
135 Aviation Way
Ste
16 Watsonville
CA 95062
J. Edward Muns Muns Vineyard 25600 Loma Prieta
Ave
Los Gatos CA
95033
James & Margaret A. Alberti Alberti Vineyard 106 Richardson Rd Santa Cruz CA 95065
James D. Ross And Jenny N.

Ross
Rosscienda Vineyard 1172 Redwood
Heights Rd Bldg
Aptos CA
95003
James, Kathleen Ann Charles Usher 24110 Congress
Springs Rd
Saratoga CA
95070-9706
Jeffrey M. Barranti J.M. Barranti Vineyards 24842 Skyland Rd Los Gatos CA 95033
John D. Benedetti Sante Arcangeli Family
Wines
23 Blake Ave Corralitos CA
95076
John Lloyd Ritchey Iv Bottle Jack Cellars 1088 La Madrona Dr
Santa Cruz CA
95060
Kathryn Kennedy Winery Kathryn Kennedy Winery 13180 Pierce Rd Saratoga CA 95070
Kennedy Hill Associates
LLC
Kennedy Hill Associates
LLC
15050 Kennedy Rd Los Gatos CA
95032
King, David James People's Beverage
Company, The
1214 Fair Ave Santa Cruz CA
95060-5838
Kingston Family Vineyards
LLC
Kingston Family
Vineyards
520 La Mesa Dr Portola Valley
CA 94028
Kissed By An Angel Wines,
LLC
Kissed By An Angel
Wines
2535 7Th Ave Unit
4 Santa Cruz CA
95062
Kissed By An Angel Wines,
LLC
Kissed By An Angel
Wines, LLC
75 Mt Hermon Rd Scotts Valley,
CA 95066
La Barbera Family Winery
LLC
Labarbera Family Winery 6591 Woodcliff Ct San Jose CA
95120-4551
La Madrona Vineyard And
Winery
1851 La Madrona
Dr
Santa Cruz CA
95060
La Magnifico Vita, LLC Ferrari Ranch Wines 65 Magnifico Vita Ln
Watsonville
CA 95076-
0385
La Vida Bella Vineyard, LLC La Vida Bella Vineyard 44 Oak Tree Ln Aptos CA 95003
Lago Lomita Vineyards, LLC Lago Lomita Vineyards,
LLC
25200 Loma Prieta
Ave
Los Gatos CA
95033
Lester Company, LLC Lester Estate Wines 1950 Pleasant
Valley Rd
Aptos CA
95003
Lexington Hills LLC Lexington Hills 19802 Old Santa
Cruz
Hwy
Los Gatos CA
95033

Page 657 ends

ITEM NO. 13.

SCMWID Management District Plan 33
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Little Ridge Vineyards, LLC Little Ridge Vineyard 153 Las Colinas Rd Corralitos CA 95076
Lokteff Winery & Vineyards,
LLC
Wrights Station Vineyard
& Winery
24250 Loma Prieta
Ave
Los Gatos CA
95033
Loma Prieta Winery L.L.C. Loma Prieta Winery 26985 Loma Prieta Way
Los Gatos CA
95033
Los Altos Vineyards, LLC. Byington 21850 Bear Creek
Rd
Los Gatos CA
95030
Lost Cellars, LLC Unwritten Wines 70 Tripp Ct Woodside CA 94062-4232
M E V Corporation Mount Eden Vineyards 23000 Congress
Springs Rd
Saratoga CA
95070
M.E.V. Corporation Mount Eden Vineyards 22020 Mount
Eden Rd
Saratoga CA
95070
Madson Wines LLC Madson Wines 328 Ingalls St Ste
G
Santa Cruz CA
95060
Margins Wine Cubby Margins Wine LLC 402 Ingalls St Ste
18 Santa Cruz CA
95060-5800
Margins Wine LLC Margins Wine 2487 Freedom
Blvd
Unit 3
Watsonville
CA 95076
Martella LLC/Thomas
Fogarty Winery, LLC
Martella Wines/Thomas
Fogarty Winery
5937 Alpine Rd Portola
Valley CA
94028
Martin Ranch Winery, Inc. Martin Ranch 6675 Redwood
Retreat Rd
Gilroy CA
95020
Mayo, Keegan Keoni Mayo Cellars 1008 Cayuga St Santa Cruz CA 95062-2422
Michael & Lynne
Muccigrosso
Muccigrosso
Vineyards
21450 Bear Creek
Rd
Los Gatos CA
95033
Michael V. & Lois E. Sones Sones Cellars 334 B Ingalls St Ste B
Santa Cruz CA
95060
Mindego Ridge Winery 9645 Alpine Rd La Honda CA
94020
Mja Vineyards LLC Mja Vineyard 328 Ingalls St Santa Cruz CA 95060
Monte Roble Vineyards
LLC/Silver Mountain
Vineyards
Left Bend/Silver
Mountain Vineyard
369 Silver
Mountain
Dr
Los Gatos CA
95033
Nazario Ranch Vineyards
LLC
Nazario Ranch Vineyards 22484 Eden Valley
Ct
Saratoga CA
95070-9757
Neely Wines 575 Portola Rd Portola Valley
CA 94028

Page 658 ends

ITEM NO. 13.

SCMWID Management District Plan 34
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Nicholson Vineyards
Winery,
Inc.

Nicholson Vineyards
Winery,
Inc.
2800 Pleasant
Valley
Rd
Aptos CA
95003
Nicolas Vonderheyden (Gp)
-
Chaine D'Or Vineyards,
Limited
Partnership
Chaine D'Or Vineyards 140 Sunrise Dr Woodside CA
94062
Old Oak Vineyard, Inc. House Family Winery 13330 Old Oak Way
Saratoga CA
95070
Overshine Wine Co Overshine Cellars, LLC 103 Stockton Ave Capitola CA 95010
P &Amp; M Staiger Staiger, Marjorie 1300 Hopkins
Gulch Rd
Boulder Creek
CA 95006
Pacific Rim Marketing Pacific Rim Marketing Inc 1306 Via Tornasol Aptos CA 95003-5654
Partage Wine Co. LLC Partage Wine 346 N Santa Cruz
Ave
Los Gatos CA
95030-7243
Patland Estate Vineyards
LLC
Patland Estate Vineyards 110 Madera Ct Los Gatos CA
95032-5720
Patrick James And Molly
Claire Surgalski
16252 Niles Rd Los Gatos CA
95033
Pelio Vineyard, LLC Pelio Vineyard 14573 Big Basin
Way
Saratoga CA
95070
Peter Serventi Serventi Ranch 65 Litchfield Ln Watsonville CA 95076
Peter Thibodeau Thibodeau Vineyard 431 Coyote Ridge
Rd
Aptos CA
95003
Phil & Peggy Crews Pelican Ranch
Winery
2364 Bean Creek
Rd Dr
Scotts Valley
CA 95066
Picchetti Winery Inc Picchetti Winery Inc 13100 Montebello Rd
Cupertino CA
95014
Pleasant Valley Vineyards Handley, Cathy Lynn 600 Pleasant Vly Rd
Aptos CA
95003
Private Vine Wines Private Vine Wines, LLC 815 Almar Ave Unit H
Santa Cruz CA
95060-5873
Prolific Vines Vineyard LLC Prolific Vines 165 Happy Acres Rd
Los Gatos CA
95032-5704
R And W Pursuits LLC R & W Vineyards 15060 Montebello
Rd
Cupertino CA
95014
Rachael Henrichsen 1120 17Th Ave
Bldg
Rear
Santa Cruz CA
95062
Radonich Bros Vineyards
LLC
Radonich Bros Vineyards
LLC
25205 Apple Hill
Rd
Los Gatos CA
95033-9719

Page 659 ends

ITEM NO. 13.

SCMWID Management District Plan 35
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Raffaelli Vineyards, LLC Raffaelli Vineyards 3357 Chardonnay Rd
Soquel CA
95073
Randal Lee West And Larae
West
Freedom Wineworks 2321 Freedom
Blvd
Watsonville
CA 95076
Ratka, Michael Patrick Split Barrel Cider 285 Allen Rd Woodside CA 94062-4401
Redwood Ridge Estate LLC Redwood Ridge Estate 21435 Summit Rd Los Gatos CA 95033-8400
Regan Vineyards Winery,
LLC
Regan Vineyards Winery,
LLC
1772 Seascape
Blvd
Aptos CA
95003-5864
Rhys Vineyards, LLC Rhys Vineyards 11715 Skyline Blvd Los Gatos CA 95033
Richard & Mary Kay Alfaro Alfaro Family Farm
& Vineyards
496 Hames Rd Corralitos CA
95076
Ridge Vineyards, Inc. Ridge Vineyards, Inc. 18100 Montebello Rd
Cupertino CA
95014
Robert J. Goldspink Granite Ridge
Vineyard
895 Granite Ridge
Dr
Santa Cruz CA
95065
Robert's Ranch Vineyards,
Inc.

Robert’s Ranch Vineyards,
Inc.
875 Roberts Rd Ben Lomond
CA 95005
Roy S. Fellom And Roy E.

Fellom
Fellom Ranch
Vineyards
17075 Montebello
Rd
Cupertino CA
95014
Russian Ridge Winery LLC Russian Ridge Winery 20245 Skyline Blvd Woodside CA 94062-3729
Saison 346 N Santa Cruz
Ave
Los Gatos CA
95030
Santa Cruz Cider Company Santa Cruz Cider
Company LLC
65 Hanger Wy C Watsonville
CA 95076-
2476
Santa Cruz Mountain
Vineyard LLC
Santa Cruz
Mountain Vineyard
334 A Ingalls St Santa Cruz CA
95060
Santa Cruz Vineyards Santa Cruz Vineyards LPship2300 Jarvis Rd Santa Cruz CA 95065
Sante Arcangeli Family
Wines
Sante Arcangeli Family
Wines LLC
154 Aptos Village
Way C1
Aptos CA
95003
Sante Arcangeli Family
Wines LLC
Sante Arcangeli Family
Wines
79 North St Pescadero CA
94060
Savannah-Chanelle
Vineyards, Inc.
23600 Congress
Springs Rd
Saratoga CA
95070
Schroeder Schroeder &Amp;
Deits LLC
Los Gatos Wines 19135 Overlook
Rd
Los Gatos CA
95030-4115
Scotts Valley Winery, LLC Scotts Valley Winery 2364 Bean Creek Rd
Scotts Valley
CA 95066
Silver Mountain Vineyards Silver Mountain Vineyards 328 Ingalls St D Santa Cruz CA 95060-5882

Page 660 ends

ITEM NO. 13.

SCMWID Management District Plan 36
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Sonnet 69 Silver Mountain
Dr
Los Gatos CA
95033
Soquel Vineyards 8063 Glen Haven
Rd
Soquel CA
95073
Spanish Ranch Winery, LLC Spanish Ranch
Winery
24000 Spanish
Ranch Rd
Los Gatos CA
95033
Steelhead Engineering, Inc. 1850 Day Valley
Rd
Aptos CA
95003
Stockwell Cellars, Inc. Stockwell Cellars 1100 Fair Ave Bldg A
Santa Cruz CA
95060
Storrs Winery & Vineyard,
Ltd.
1560 Pleasant
Valley Rd
Aptos CA
95003
Storrs Winery & Vineyard,
Ltd.

Storrs Winery 303 Potrero St Ste
35,8
Santa Cruz CA
95060
Strategy Partners
International
Windy Oaks Estate 380 Sweetwood
Way
Corralitos CA
95076
Sunridge Wines LLC Sunridge Wines LLC 433 Sunridge Dr Scotts Valley CA 95066-
4938
Tanuki Cider Honda, Robert Satoshi 334 Ingalls St # B Santa Cruz CA 95060-5880
Testarossa Vineyards, LLC Testarossa
Vineyards
300 College Ave Los Gatos CA
95030
The Mountain Winery 14831 Pierce Road Saratoga
The Ragavan Family 2000
Living Trust
Valencia Wineries 45 Valencia Ct Portola Valley
CA 94028-
7923
The Schaadt Wine Group,
LLC
Regale Winery And
Vineyards
24040 Summit Rd Los Gatos CA
95033
Tmr Cellars LLC Tmr Cellars, LLC 416 Bahr Dr Ben Lomond CA 95005-
9643
Tomaino, Kathryn,
Vidovich,
John, Michael & Mary Jane
Vidovich Vineyards 18101 Montebello
Rd
Cupertino CA
95014
Us Grant 2300 Jarvis Rd Santa Cruz CA
95065
Walsh Wine LLC Ser 13 Mesa Way Watsonville
CA 95076-
9656
Walsh Wine LLC Ser 427 C Swift St Santa Cruz CA
95060
Wargin Wines Wargin Wines LLC 5015 Soquel Dr Soquel CA
95073

Page 661 ends

ITEM NO. 13.

SCMWID Management District Plan 37
May 20, 2025
Owner Name Business Name Address City, State,
Zip
Wolff And Father Wines Wolff, Leonard Frank 514 Calabasas Rd Watsonville CA 95076-
0412
Woodside Farm Vineyard
LLC
Woodside Farm Vineyard 1 Vintage Ct Woodside CA
94062
Workman, Michael Lee Weener'S Leap Cellars 14918 Three Oaks Ct
Saratoga CA
95070-5500
*The list was developed with the most reliable information provided; however, the list may contain discrepancies. This list shall include any future to-be opened businesses. Any business that may have been missed in this list, but is still within the boundaries of the SCMWID, shall also be subject to assessment.

Page 662 ends

ITEM NO. 13.

WHEREAS, the Property and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq., authorizes the County to establish business improvement districts for the purposes of promoting tourism; and
WHEREAS, the Santa Cruz Mountains Winegrowers Association (SCMWA), winery owners, and representatives from the County have met to consider the formation of the SCMWID; and WHEREAS, the SCMWA has drafted a Management District Plan (Plan) which sets forth the proposed boundary of the SCMWID, a service plan and budget, and a proposed means of governance; and
WHEREAS, the proposed SCMWID includes all wineries, existing and in the future, located generally within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville; the towns of Los Gatos, Portola Valley, and Woodside; and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara and San Mateo; and WHEREAS, consent to include wineries in their respective jurisdictions will be requested from the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville; the towns of Los Gatos, Portola Valley, and Woodside; and the Counties of Santa Clara and San Mateo; and WHEREAS, wineries that will pay more than fifty percent (50%) of the assessment under the SCMWID have petitioned the Board to establish the SCMWID; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS THAT:

1. The recitals set forth herein are true and correct.

2. The Board finds that assessed wineries that will pay more than fifty percent (50%) of the assessment proposed in the Plan have signed and submitted petitions in support of the formation of the SCMWID. The Board accepts the petitions and adopts this Resolution of Intention to establish the SCMWID and to levy an assessment on wineries within the SCMWID boundaries in accordance with the Property and Business Improvement District Law of 1994.

3. The Board finds that the Plan satisfies all requirements of Streets and Highways Code § 36622.

4. The Board declares its intention to establish the SCMWID and to levy and collect assessments on assessed wineries within the SCMWID boundaries pursuant to the Property and Business Improvement District Law of 1994.

Docusign Envelope ID: 9EC86034-8480-491C-84D7-BA9BB8E46298 Adopted 8/5/2025 Board of Supervisors
DOC-2025-627 27.b
RESOLUTION NO. 2025 -

A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF

SANTA CRUZ DECLARING ITS INTENTION TO ESTABLISH THE SANTA

CRUZ MOUNTAINS WINE IMPROVEMENT DISTRICT (SCMWID) AND

FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC

HEARING THEREON AND GIVING NOTICE THEREOF
1 158
Docusign Envelope ID: 649C61EE-CF49-4FDB-9C50-6A3E2B6C1301 ATTACHMENT 4

Page 663 ends

ITEM NO. 13.

5. The SCMWID shall include all wineries, existing and in the future, located generally within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville, the towns of Los Gatos, Portola Valley, and Woodside, and portions of the unincorporated areas of the Counties of Santa Cruz, Santa Clara, and San Mateo, as shown in the map attached as Exhibit A.

6. The annual assessment rate is one percent (1%) of gross direct to consumer sales revenue on winery sales. Beginning in the second year of the SCMWID term, the assessment rate may be increased by the Owners’ Association to a maximum rate of two percent (2%) of gross direct to consumer sales revenue on winery sales. The maximum increase or decrease in a year shall be no more than one-half of one percent (0.5%). If the assessment rate is increased, it may subsequently be decreased but shall not be decreased below a minimum of one percent (1%) of gross direct to consumer sales revenue on winery sales.

7. The assessments levied for the SCMWID shall be applied toward Marketing & Brand Awareness and Business Improvement & Special Project programs to market assessed wineriesin SCMWID as premier winery destinations, as described in the Plan. Funds remaining at the end of any year may be used in subsequent years in which SCMWID assessments are levied as long as they are used consistent with the requirements of this Resolution and the Plan.

8. The proposed SCMWID will have a five (5) year term, beginning November 1, 2025, or as soon as possible thereafter, and ending five (5) years from its start date, unless renewed pursuant to Streets and Highways Code § 36660.

9. Bonds shall not be issued.

10. The time and place for the public meeting to hear testimony on establishing the SCMWID and levying assessments is September 9, 2025, at 9:00 AM, or as soon thereafter as the matter may be heard, at the Board Chambers located at 701 Ocean Street, Room 525, Santa Cruz, CA 95060.

11. The time and place for the public hearing to establish the SCMWID and the levy of assessments is September 23, 2025, at 9:00 AM, or as soon thereafter as the matter may be heard, at the Board Chambers located at 701 Ocean Street, Room 525, Santa Cruz, CA 95060. The Clerk of the Board is directed to provide written notice to the wineries subject to assessment of the date and time of the meeting and hearing, and to provide that notice as required by Streets and Highways Docusign Envelope ID: 9EC86034-8480-491C-84D7-BA9BB8E46298 Resolution 158-2025 2
Docusign Envelope ID: 649C61EE-CF49-4FDB-9C50-6A3E2B6C1301

Page 664 ends

ITEM NO. 13.

Code § 36623, no later than August 9, 2025.

12. At the public meeting and hearing the testimony of all interested persons for or against the establishment of the SCMWID may be received. If at the conclusion of the public hearing, the owners of the assessed wineries within the proposed SCMWID that will pay fifty percent (50%) or more of the estimated total assessment of the entire SCMWID have filed written protests objecting to the establishment of the SCMWID, no further proceedings to establish the SCMWID shall occur for a period of one (1) year.

13. The complete Plan is on file with the Clerk of the Board and may be reviewed upon request.

14. This resolution shall take effect immediately upon its adoption by the Board of Supervisors.

PASSED AND ADOPTED by the Board of Supervisors of the County of Santa Cruz, State of California, this _____day of _________, 2025, by the following vote:

AYES:

NOES:

ABSENT:
_______________________________
Felipe Heranandez
Chair of the Board of Supervisors
ATTEST:
_________________________________
Juliette Rezzato
Chief Deputy Clerk of the Board
Approved as to Form:
_________________________________
Jason M. Heath
Office of the County Counsel
Docusign Envelope ID: 9EC86034-8480-491C-84D7-BA9BB8E46298 5th August
Supervisor Koenig, De Serpa, Cummings, Martinez and Hernandez None
ABSTAIN:

None
None
Resolution 158-2025 3
Docusign Envelope ID: 649C61EE-CF49-4FDB-9C50-6A3E2B6C1301 8/6/2025
8/6/2025

Page 665 ends

ITEM NO. 13.

EXHIBIT A
District Boundaries
Docusign Envelope ID: 9EC86034-8480-491C-84D7-BA9BB8E46298 Resolution 158-2025 4
Docusign Envelope ID: 649C61EE-CF49-4FDB-9C50-6A3E2B6C1301

Page 666 ends

ITEM NO. 13.

Certificate Of Completion
Envelope Id: 9EC86034-8480-491C-84D7-BA9BB8E46298 Status: Completed Subject: Complete with Docusign: Resolution of Intention SCMWID.pdf Source Envelope:

Document Pages: 4 Signatures: 1 Envelope Originator:

Certificate Pages: 4 Initials: 0 Peter Detlefs
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
701 Ocean Street
Santa Cruz, CA 95060
[email protected]
IP Address: 76.209.242.199
Record Tracking
Status: Original
7/11/2025 12:12:13 PM
Holder: Peter Detlefs
[email protected]
Location: DocuSign
Security Appliance Status: Connected Pool: FedRamp
Storage Appliance Status: Connected Pool: County of Santa Cruz Location: Docusign Signer Events Signature Timestamp
Jason M. eath
[email protected]
County Counsel
County of Santa Cruz
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 63.194.190.100
Sent: 7/11/2025 12:12:45 PM
Viewed: 7/11/2025 12:45:10 PM
Signed: 7/11/2025 12:46:14 PM
Electronic Record and Signature Disclosure:

Accepted: 7/11/2025 12:45:10 PM
ID: eadbdc43-d210-49f6-89b4-58e73ee8e0c0
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 7/11/2025 12:12:45 PM
Certified Delivered Security Checked 7/11/2025 12:45:10 PM Signing Complete Security Checked 7/11/2025 12:46:14 PM Completed Security Checked 7/11/2025 12:46:14 PM
Payment Events Status Timestamps
Electronic Record and Signature Disclosure
Resolution 158-2025 5
Docusign Envelope ID: 649C61EE-CF49-4FDB-9C50-6A3E2B6C1301

Page 667 ends

ITEM NO. 13.

ELECTRONIC RECORD AND SIGNATURE DISCLOSURE
From time to time, County of Santa Cruz (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

Getting paper copies
At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below.

Withdrawing your consent
If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below.

Consequences of changing your mind
If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us.

All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 2/28/2022 5:23:37 PM Parties agreed to: Jason M. eath
Resolution 158-2025 6
Docusign Envelope ID: 649C61EE-CF49-4FDB-9C50-6A3E2B6C1301

Page 668 ends

ITEM NO. 13.

Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

How to contact County of Santa Cruz:

You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows:

To contact us by email send messages to: [email protected] To advise County of Santa Cruz of your new email address To let us know of a change in your email address where we should send notices and disclosures electronically to you, you must send an email message to us at [email protected] and in the body of such request you must state: your previous email address, your new email address. We do not require any other information from you to change your email address.

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Resolution 158-2025 7
Docusign Envelope ID: 649C61EE-CF49-4FDB-9C50-6A3E2B6C1301

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ITEM NO. 13.
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Resolution 158-2025 8
Docusign Envelope ID: 649C61EE-CF49-4FDB-9C50-6A3E2B6C1301

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ITEM NO. 13.

Certificate Of Completion
Envelope Id: 649C61EE-CF49-4FDB-9C50-6A3E2B6C1301 Status: Completed Subject: 158-2025 Resolution Santa Cruz Mountains Wine Improvement District Source Envelope:

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Certificate Pages: 5 Initials: 0 CBD eSignature
AutoNav: Enabled
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Time Zone: (UTC-08:00) Pacific Time (US &
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Stamps: 1 701 Ocean Street
Santa Cruz, CA 95060
[email protected]
IP Address: 63.194.190.100
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Chief Deputy Clerk of the Board of Supervisors
County of Santa Cruz
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ITEM NO. 13.

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ITEM NO. 13.

All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 2/28/2022 5:23:37 PM Parties agreed to: Felipe Hernandez, Juliette Rezzato, CBD eSignature, Peter Detlefs

Page 673 ends

ITEM NO. 13.

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Page 675 ends

ITEM NO. 13.
1 RESOLUTION NO. 159-2025

RESOLUTION OF THE SANTA CRUZ COUNTY BOARD OF SUPERVISORS

REQUESTING CONSENT OF THE CITIES OF SANTA CRUZ, SARATOGA, SCOTTS VALLEY, CAPITOLA, AND WATSONVILLE; THE TOWNS OF LOS GATOS, PORTOLA VALLEY AND WOODSIDE; AND THE COUNTIES OF

SANTA CLARA AND SAN MATEO TO FORM THE SANTA CRUZ

MOUNTAINS WINE IMPROVEMENT DISTRICT
WHEREAS, the Board of Supervisors of the County of Santa Cruz desires to begin proceedings to form the Santa Cruz Mountains Wine Improvement District (SCMWID); and
WHEREAS, winery owners have requested that the Board form the SCMWID; and WHEREAS, a portion of the territory proposed to be included in the SCMWID lies within the boundaries of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville (cities); the towns of Los Gatos, Portola Valley, and Woodside (towns); and portions of the unincorporated areas of the counties of Santa Clara and San Mateo (counties), as shown on the map attached hereto as Exhibit A and incorporated herein by such attachment; and
WHEREAS, the area of the cities, towns, and counties which lies within the boundaries of the proposed SCMWID will, in the opinion of the Board, benefit from the improvements and activities, and the purpose sought to be accomplished by the work can best be accomplished by a single comprehensive scheme of work;

NOW, THEREFORE, BE IT RESOLVED BY THE SANTA CRUZ COUNTY BOARD OF SUPERVISORS THAT:

Section 1: The above recitals are true and correct.

Section 2: Consent of the cities, towns, and counties through their respective City Councils, Town Councils and Boards of Supervisors, is hereby requested to form the SCMWID, and to grant to the Santa Cruz County Board of Supervisors jurisdiction for all the purposes in connection with creation, operation, and future renewals of the proposed SCMWID.

Section 3: The Clerk of the Board is hereby directed to transmit a certified copy of this Resolution to the City Clerk of the cities of Santa Cruz, Saratoga, Scotts Valley, Capitola, and Watsonville; to the Town Clerk of the towns of Los Gatos, Portola Valley, and Woodside; and to the County Clerk of the counties of Santa Clara and San Mateo.

PASSED AND ADOPTED by the Board of Supervisors of the County of Santa Cruz, State of California, this 5th day of August, 2025, by the following vote:

Docusign Envelope ID: 379CD258-E7AD-4838-B4E6-F4983EFB31E3 Adopted 8/5/2025 Board of Supervisors
DOC-2025-627 27.c
Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5 ATTACHMENT 5 Page 676
ITEM NO. 13.
2 AYES: Supervisors Koenig, De Serpa, Cummings, Martinez and Hernandez NOES: None
ABSENT: None
ABSTAIN: None
______________________________
Felipe Hernandez
Chair of the Board
ATTEST: ___________________________
Juliette Rezzato
Clerk of the Board
APPROVED AS TO FORM:
______________________________
Jason M. Heath
Office of the County Counsel
Docusign Envelope ID: 379CD258-E7AD-4838-B4E6-F4983EFB31E3 Resolution 159-2025
Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5 8/6/2025
8/6/2025

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ITEM NO. 13.
3 Exhibit A: SCMWID Boundary Map
Docusign Envelope ID: 379CD258-E7AD-4838-B4E6-F4983EFB31E3 Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5

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ITEM NO. 13.

Certificate Of Completion
Envelope Id: 379CD258-E7AD-4838-B4E6-F4983EFB31E3 Status: Completed Subject: Complete with Docusign: Resolution Requesting Consent SCMWID.pdf Source Envelope:

Document Pages: 3 Signatures: 1 Envelope Originator:

Certificate Pages: 4 Initials: 0 Peter Detlefs
AutoNav: Enabled
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Time Zone: (UTC-08:00) Pacific Time (US & Canada)
701 Ocean Street
Santa Cruz, CA 95060
[email protected]
IP Address: 76.209.242.199
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Jason M. Heath
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County of Santa Cruz
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Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5

Page 679 ends

ITEM NO. 13.

All notices and disclosures will be sent to you electronically Electronic Record and Signature Disclosure created on: 2/28/2022 5:23:37 PM Parties agreed to: Jason M. Heath
Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5

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ITEM NO. 13.

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Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5

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Docusign Envelope ID: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5

Page 682 ends

ITEM NO. 13.

Certificate Of Completion
Envelope Id: 0E3885AE-3042-4ABB-8613-48F9E4D04FE5 Status: Completed Subject: Complete with Docusign: Resolution 159-2025 requesting consent to form the Santa Cruz Mountains...

Source Envelope:

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Certificate Pages: 5 Initials: 0 Elizabeth Padilla
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Canada)
Stamps: 1 701 Ocean Street
Santa Cruz, CA 95060
[email protected]
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ID: 2a2f0d4d-8f3b-4197-9c0c-4b7e9be9c82a
Juliette Rezzato
[email protected]
Chief Deputy Clerk of the Board of Supervisors
County of Santa Cruz
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Page 683 ends

ITEM NO. 13.

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Peter Detlefs
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Completed Security Checked 8/6/2025 4:02:22 PM
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ITEM NO. 13.

Page 685 ends

ITEM NO. 13.

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Page 687 ends

ITEM NO. 13.

Santa Cruz Wine
Improvement
District
ATTACHMENT 6

Page 688 ends

ITEM NO. 13.

Update
Petition Drive – 59.7% in support
based on assessed value
Jurisdictions granted consent:
- Capitola
- Scotts Valley
- Saratoga

Page 689 ends

ITEM NO. 13.

Wine Districts
Collected by 3
rd
party
Managed by
SCMWA in
accordance w/ MDP
Winery pays an
assessment
•Level playing field—no free riders
•Transparency & Reliability
•Pass-through to guests

CHARACTERISTICS

Page 690 ends

ITEM NO. 13.
o Term: Initial 5-Year Term
o Management: Santa Cruz Mountains
Winegrowers Association
o Assessment Rate: 1% of gross DTC wine
sales. Beginning of year 2, may be
increased up to 2% (increase max of 0.5%
per year)
*2% ceiling may be reduced to 1.5% during
Public Hearing
Wine District Parameters

Page 691 ends

ITEM NO. 13.

Wine District Parameters
Marketing & Brand
Awareness, 55%,
$316,250
Business Improvement &
Special Projects, 10%,
$57,500
Administration &
Operations, 23%,
$132,250
Contingency / Reserve, 10%,
$57,500
Collection Fee, 2%, $11,500
Estimated Initial Annual Budget - $575,000

Page 692 ends

ITEM NO. 13.

Key Services
• Business Improvement & Special Projects
• Wine Trail Signage
• Participation in Events and Hosting
• Marketing & Brand Awareness
• Large-scale Digital & Print Advertising
• Public Relations
• Digital Marketing Campaigns

Page 693 ends

ITEM NO. 13.
o Boundaries include 11 jurisdictions:
o Portions of:
o Santa Cruz County (lead jurisdiction)
o Santa Clara County
o San Mateo County
o Cities:
o Santa Cruz
o Saratoga
o Scotts Valley
o Capitola
o Watsonville
o Towns:
o Los Gatos
o Portola Valley
o Woodside
*boundary may be reduced during Public Hearing
Wine District Parameters

Page 694 ends

ITEM NO. 13.

Timeline
Action Date
Feasibility Study August – November 2024
Initiate WID Formation February 2025
Continued business outreach and consensus building to businesses, jurisdiction staff, and elected officials February – October 2025 Management District Plan (MDP) February – May 2025
Petition Drive May – July 2025
Resolution of Intention & Resolution Requesting Consent August 5, 2025 Notice of Public Meeting/Hearing
August 6, 2025
August 28, 2025 – revised
September 12, 2025 – revised
Resolutions Granting Consent to County of Santa Cruz August – September 2025 Public Meeting September 9, 2025

Page 695 ends

ITEM NO. 13.

Santa Cruz Mountains Winegrowers Association
335 Spreckles Dr STE B Aptos CA 95003
October 2, 2025
Dear Mayor and Members of the Los Gatos Town Council
110 E. Main Street
Los Gatos, CA 95030
On behalf of the Santa Cruz Mountains Winegrowers Association, I want to express our deep appreciation for the Town of Los Gatos’ consideration of the proposed Santa Cruz Mountains Wine Improvement District (SCMWID) and to share the importance of your support.

The Santa Cruz Mountains AVA is one of California’s oldest and most distinctive winegrowing regions, encompassing over 480,000 acres and home to more than 75 small, family-owned wineries. Los Gatos is a gateway to this region, with several wineries, tasting rooms, and vineyard estates that not only contribute to the town’s economic vitality but also to its cultural and historical identity.

The SCMWID is modeled after successful business improvement districts across California, including the Tourism Marketing District (TMD) already in place through Visit Santa Cruz and other wine districts, most recently, Santa Barbara County’s. This program creates a sustainable, self-funded model where wineries within the district contribute a modest assessment that is reinvested directly back into marketing, promotion, and destination development for the benefit of all. Importantly, the district is widely supported by wineries across the AVA and Santa Clara County. Of the wineries that will be assessed, we’ve received support valued at 76%+. Los Gatos wineries affected by the assessment have also provided their support.

Your support matters. With Los Gatos’ participation and support through passing a resolution granting consent to the County of Santa Cruz, we can ensure that this effort reflects the full scope of our region, uniting our communities to strengthen the visibility of Santa Cruz Mountains wines on retail shelves, wine lists, and as a driver of tourism. In doing so, Los Gatos stands to benefit from increased visitation, enhanced regional branding, and new opportunities for its businesses to thrive.

We are proud to represent a heritage of independent, family-run wineries that have invested generations of care into this land. The SCMWID ensures their legacy will be more visible, competitive, and sustainable for years to come.

We respectfully ask for your support of the Santa Cruz Mountains Wine Improvement District and look forward to working in partnership with the Town of Los Gatos to celebrate and strengthen our shared wine heritage.

With gratitude,
Sincerely,
Keikilani McKay
Executive Director
Santa Cruz Mountains Winegrowers Association
ATTACHMENT 7

Page 696 ends

ITEM NO. 13.

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: 10/07/2025
ITEM NO: 14
DATE: October 2, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Adopt a Resolution to Modify Town Council Policy 1-08: “Transportation Impact Policy”
RECOMMENDATION: Adopt a Resolution to Modify Town Council Policy 1-08:
“Transportation Impact Policy” to Update the Project List, Modify Charges for Affordable Housing, Allow for Charges on Accessory Dwelling Units (ADUs) in Excess of 750 Square Feet, and Adjust How Credits are Calculated.

FISCAL IMPACT:

The proposed changes will allow for the collection of Transportation Impact Fees on ADUs of 750 square feet or more, which may generate nominal additional revenue. Fees will be charged proportionately in relation to the square footage of the ADU to the square footage of the primary dwelling unit.

Simultaneously, the Policy introduces a 50% reduction in Transportation Impact Fees for deedrestricted housing units serving extremely low- and very low-income households, which may result in a moderate reduction in total collected fees over time.

The net fiscal impact is expected to be minimal but directionally neutral to slightly positive, depending on development activity. These adjustments ensure ongoing policy alignment with State housing mandates while supporting Town infrastructure needs. Based on recent development trends over the past three years, the Town processes approximately 50 ADU permit applications annually, several of which exceed 750 square feet. Applying Transportation Impact Fees to these units could result in nominal additional revenue of approximately $25,000 per year, depending on unit size and fee rates.

Page 697 ends

ITEM NO. 14.

PAGE 2 OF 4
SUBJECT: Adopt Resolution to Modify Town Council Policy 1-08 “Transportation Impact Policy”
DATE: October 2, 2025
STRATEGIC PRIORITY:

This item aligns with the strategic priority: Develop structure to ensure accountability of how funding resources move forward the Town’s core goals and priorities.

BACKGROUND:

On August 5, 1991, the Town of Los Gatos adopted Town Council Policy 1-08 to establish procedures for assessing Traffic Impact Mitigation Fees. The Policy has been revised periodically to reflect legislative changes and Town priorities, with updates in 2014, 2016, 2017, and most recently in 2021. These updates have addressed fee applicability, project eligibility, and alignment with state mandates such as SB 743 requiring Vehicle Miles Traveled (VMT) metrics.

This current update further aligns the Policy with current CEQA requirements, clarifies charges for Accessory Dwelling Units (ADUs), adjusts affordable housing incentives, updates the project list, and clarifies how certain projects might receive credits against their traffic impact fee.

In early 2024, the Town adopted an increase to its transportation impact fee, which was later rescinded due to concerns regarding the nexus study. Staff has reviewed the nexus study and is not recommending changes to the Town’s transportation impact fee until a Town-wide traffic model has been completed. At this time, Town staff is recommending only an update to the Town’s Transportation Impact Policy.

DISCUSSION:

The Town is proposing a policy-only update at this time to ensure consistency with recent changes in State law regarding Accessory Dwelling Units, incentivize production of extremely low and very low income housing, modernize the language around credits, and to remove outdated projects from the Transportation Impact Policy’s project list and add projects that have been identified through adopted planning documents like the Bicycle and Pedestrian Master Plan. This update allows the Town to improve clarity and legal defensibility of the fee application while staff completes the Town-wide traffic model needed for a full nexus-based fee update. The Policy update does not include a change to the fee amount at this time.

Attachment 1 is a resolution to support the adoption of the changes, and the proposed Policy is attached to the resolution. Attachment 2 is a redline of the changes proposed to Town Policy 1-08. Specific proposed changes to the Policy include:

1. Allowing Transportation Impact Fees to be charged on Accessory Dwelling Units of 750 square feet or larger, as allowed per state law;

2. Reducing Transportation Impact Fees for deed restricted housing units, which may encourage production of affordable housing;

Page 698 ends

ITEM NO. 14.

PAGE 3 OF 4
SUBJECT: Adopt Resolution to Modify Town Council Policy 1-08 “Transportation Impact Policy”
DATE: October 2, 2025

3. Allowing development projects that choose to construct a project from the Project List to receive credit for the full cost of the project construction, including any land dedication that could be required (up to the amount of the TIF that is owed);

4. Clarifying how credit is issued for existing land uses when redevelopment projects are proposed; and

5. Replacing the project list in Attachment 2 of the Policy.

Revenue from Transportation Impact Fees is directly dependent on the number and type of development applications received by the Town each year. Revenues in recent years have varied widely as shown in Table 1.

Table 1. Summary of Recent Collections to the Transportation Impact Fee Program Fiscal Year Fee Collected ($)
2024-25 10,431
2023-24 2,726,394
2022-23 9,582
2021-22 82,449
2020-21 18,087
2019-20 133,741
CONCLUSION:

The actions proposed herein will update the Town’s Transportation Impact Policy to better align with current state law and local development trends. While no changes to the Transportation Impact Fee amounts are being implemented at this time, the Policy revisions ensure clarity regarding how fees are calculated and update the list of capital projects for which fees may be used. These actions pertain to Town Council Policy only and do not affect the Town Code. Staff is not recommending changes to the Town’s Transportation Impact Fee until a Town-wide traffic model has been completed.

COORDINATION:

This agenda item was coordinated with the Town Manager, Town Attorney, and the Finance Director. If the Policy is adopted, staff will return to Council with a follow-up update to the Master Fee Schedule to reflect the new applicability of fees to ADUs larger than 750 square feet.

Page 699 ends

ITEM NO. 14.

PAGE 4 OF 4
SUBJECT: Adopt Resolution to Modify Town Council Policy 1-08 “Transportation Impact Policy”
DATE: October 2, 2025
ENVIRONMENTAL ASSESSMENT:

In accordance with CEQA Guidelines Section 15378(b)(4), these actions are fiscal and administrative activities and do not constitute projects as defined in CEQA, and no further action is required.

ATTACHMENTS:

1. Draft Resolution to Modify Town Council Policy 1-08, “Transportation Impact Policy”

2. Redline of Proposed Changes to Town Council Policy 1-08

Page 700 ends

ITEM NO. 14.
1 of 2
Resolution 2025- October 7, 2025
ATTACHMENT 1
RESOLUTION 2025-

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS

ADOPTING AN UPDATED TRAFFIC IMPACT POLICY
WHEREAS, Chapter 15, Article VI of the Town of Los Gatos Town Code provides for the establishment of Traffic Impact Mitigation Fees;
WHEREAS, on August 5, 1991, the Town of Los Gatos adopted Resolution 1991- 174 adopting a Traffic Impact Policy;
WHEREAS, the Policy has been updated from time to time including most recently on December 12, 2021;
WHEREAS, staff recommends updating the Policy to reduce the transportation impact fees charged for affordable housing, to provide that transportation impact fees will be collected for accessory dwelling units in excess of 750 square feet, and to update the way development and redevelopment projects might be provided with credits; and WHEREAS, Attachment 2, Project list, has not been modified since 2014 and many of the projects have been completed and therefore needs to be updated.

NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Los Gatos that:

1. The Transportation Impact Policy attached as Exhibit A to this Resolution is hereby adopted and the previous Traffic Impact Policy is rescinded.

2. Adoption of this updated Policy is not a project subject to CEQA because it can be seen with certainty that it will not have a significant impact on the environment. (CEQA Guidelines Section 15378.)
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 7th day of October, 2025, by the following vote:

COUNCIL MEMBERS:

AYES:

NAYS:

ABSENT:

ABSTAIN:

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Resolution 2025- October 7, 2025
ATTACHMENT 1
SIGNED:
_______________________________

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
ATTEST:
___________________________________

TOWN CLERK OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA

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ITEM NO. 14.

EXHIBIT A to ATTACHMENT 1

COUNCIL POLICY MANUAL
TITLE: Transportation Impact Policy POLICY NUMBER: 1-08 EFFECTIVE DATE: January 4, 1988 PAGES: 11
ENABLING ACTIONS: 1991-174; 2014-017,
2016-068; 2017-011
REVISED DATES: 8/5/91; 3/24/14; 12/6/16;
3/21/17; 12/07/2021; 09/16/2025
APPROVED:

PURPOSE
To provide guidance to Town staff and the development community in implementing the provisions of the Town Municipal Code, Chapter 15, Article VII, Traffic Impact Mitigation Fees, and evaluating and mitigating California Environmental Quality Act (CEQA) transportation impacts.

SCOPE
This Policy is applicable to all land use entitlements, land use projects, and transportation improvements Town-wide.

POLICY
I. GENERAL CONDITIONS AND APPLICABILITY

1. Projects that are determined by the Town to generate one or more new net Average Daily Trips (ADT) are subject to this Policy.

2. An Accessory Dwelling Unit (ADU) of less than 750 square feet shall be exempted from the requirements of Transportation Analysis and the Traffic Impact Fees. ADU’s of 750 square feet or greater shall be charged proportionately in relation to the square footage of the ADU to the square footage of the primary dwelling unit.

3. Attachment 1 - Transportation Analysis (TA) Guidelines establish a process to comprehensively and accurately analyze potential project effects (adverse and beneficial) on transportation facilities and services in the Town of Los Gatos and other jurisdictions. The TA Guidelines serve three primary purposes:

Small Town Service Community Stewardship Future Focus

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• Provide an evaluation for the California Environmental Quality Act (CEQA) significant impacts and mitigation as a part of the environmental analysis process. • Evaluate a project’s consistency with the Town’s General Plan. • Evaluate a project’s consistency with the Santa Clara County Congestion Management Program (CMP).

II. TRANSPORTATION IMPACT FEES

1. All Projects that generate one or more new Average Daily Trips (ADT) as calculated based on the ITE trip generation manual are required to pay Transportation Impact Fees, previously known as Traffic Impact Mitigation Fees.

2. All required Transportation Impact Fees shall be paid in full to the Town in association with and prior to issuance of a building permit, unless otherwise required by law. If no building permit is required, the fee shall be paid in full prior to issuance of a certificate of use and occupancy, or similar entitlement. Unless otherwise required by law, the amount due shall be calculated based on the fee in place as approved by the Town Council by resolution at the time the fee is paid.

3. The per trip amount of the fee shall be as set forth by the Town Council by resolution, pursuant to Town Municipal Code, Chapter 15, Article VII, Traffic Impact Mitigation Fees.

4. Fees shall be calculated by multiplying net new ADT by the per trip amount in place at the time the fees are paid.

5. Credit against Transportation Impact Fees due shall be granted for projects shown on the town of Los Gatos Transportation Improvements list (Attachment 2) up to the amount of the actual reasonable expenditure based on receipts submitted to the Town and as approved by the Town Engineer. Credit may be applied for any listed projects for which the developer, as a condition of approval, is required to either construct at the developer's sole cost or contribute a fixed or percentage amount of funding toward future construction of the listed improvement.

6. No credit shall be given for any public right-of-way dedication required for completion of projects not listed on Attachment 2.

7. Credit for existing development shall be determined by trips generated at the site within three years of entitlement application to the Community Development Department. Properties not generating trips within three years of application will not receive credit. All credits under this section shall be at the discretion of the Town

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Engineer.

8. Housing units deed restricted for extremely low- and very low-income categories shall pay a fee at 50% of the rate of the fee that would otherwise be required for the unit.

Extremely low- and very-low income categories will be as defined by the County of Santa Clara. The Community Development Director shall provide verification that the appropriate deed restrictions have been filed before permitting the project to pay the lower fee.

9. No credit shall be given for installation of Town-standard frontage improvements, Project access improvements, or internal circulation improvements.

10. Credit shall only be granted for payment of costs or construction of projects listed in Attachment 2, unless otherwise approved by the Town Council.

III. VEHICLE MILES TRAVELLED MITIGATION MEASURES

1. To mitigate VMT environmental impacts, the project shall be conditioned for implementation of mitigation measures in the following categories:
• Modify the project’s built environment characteristics to reduce VMT generated by the project;
• Implement transportation Demand Management (TDM) measures to reduce VMT generated by the project; and/or
• Participate in a VMT fee program and/or VMT mitigation exchange/banking program (if they exist) to reduce VMT from the project or other land uses to achieve acceptable levels.

2. The Town is taking a Townwide approach for VMT impact mitigation. Attachment 3, VMT Reduction Actions for the Town of Los Gatos, provides a framework for mitigating VMT in the Town.

APPROVED AS TO FORM:

Gabrielle Whelan, Town Attorney

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Town of Los Gatos
Transportation Analysis Guidelines
Table of Contents

1. Introduction............................................................................ Error! Bookmark not defined.

1.1 Intent of TA Guidelines ..................................................... Error! Bookmark not defined.

1.2 Environmental Evaluation................................................. Error! Bookmark not defined.

1.3 Project Types .................................................................... Error! Bookmark not defined.

1.4 CEQA and Non-CEQA Terminology.................................... Error! Bookmark not defined.

2. Determining the Level of Transportation Analysis.................. Error! Bookmark not defined.

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2.2 CMP Consistency Screening .............................................. Error! Bookmark not defined.

2.3 Recommended Process and Documentation .................... Error! Bookmark not defined.

2.4 Contact with Appropriate Town Staff ............................... Error! Bookmark not defined.

2.5 Consultation with Other Jurisdictions............................... Error! Bookmark not defined.

2.6 Project Trip Generation and Trip Reductions.................... Error! Bookmark not defined.

2.6.1 Vehicle Trips............................................................... Error! Bookmark not defined.

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2.6.4 Credit for Existing Trips – Local Analysis .................... Error! Bookmark not defined.

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2.7 Vehicle Miles Traveled Methods....................................... Error! Bookmark not defined.

3. Transportation Analysis (CEQA) for Land Use Projects ........... Error! Bookmark not defined.

3.1 VMT Analysis Methods ..................................................... Error! Bookmark not defined.

3.1.1 Regional Transportation Plan/Sustainable Communities Strategy and General Plan Consistency ............................................................................................ Error! Bookmark not defined.

3.1.2 VMT Assessment........................................................ Error! Bookmark not defined.

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3.3 VMT Mitigation Measures ................................................ Error! Bookmark not defined.

4. Transportation Analysis (CEQA) for Transportation Projects.. Error! Bookmark not defined.

5. Transportation Analysis per the Town’s Transportation PoliciesError! Bookmark not defined.

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5.1 Study Area ............................................................................ Error! Bookmark not defined.

5.2 Key Study Elements............................................................... Error! Bookmark not defined.

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5.8 Traffic Operations Analysis ................................................... Error! Bookmark not defined.

5.9 Mobility Deficiency Criteria................................................... Error! Bookmark not defined.

5.10 CMP Deficiency Criteria ...................................................... Error! Bookmark not defined.

5.11 Mitigation Improvements................................................... Error! Bookmark not defined.

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1. Introduction
Transportation Analysis (TA) Guidelines are routinely established by jurisdictions to assess potential transportation effects of proposed projects on the local transportation system. These guidelines are intended to provide a clear and consistent technical approach to evaluating both land use and transportation infrastructure projects within Los Gatos.

These guidelines establish a process to comprehensively and accurately analyze potential project effects (adverse and beneficial) on transportation facilities and services in the Town of Los Gatos and other jurisdictions. This information is essential for decision-makers and the public when evaluating land use development and transportation infrastructure projects. These TA Guidelines serve three primary purposes:
• Provide an evaluation for the California Environmental Quality Act (CEQA) significant impacts and mitigation as a part of the environmental analysis process. • Guide the Local Transportation Analysis in evaluating a project’s consistency with the Town’s General Plan Mobility Goals.
• Evaluate a project’s consistency with the Santa Clara County Congestion Management Program (CMP).

1.1 Intent of TA Guidelines
The Town of Los Gatos General Plan 2040 seeks to “provide a well-connected transportation system that enables safe access for all transportation modes, including pedestrians, bicyclists, motorists, and transit riders of all ages and abilities.” The TA Guidelines support this goal by evaluating new projects against the policies of the latest General Plan.

For CEQA-based environmental analysis, these TA Guidelines incorporate the use of vehicle miles traveled (VMT) to disclose the effects of the project on the surrounding environment. Town staff completed an SB 7431 implementation process, which included the preparation of the SB 743 Implementation for the Town of Los Gatos (July 2020) document package. The document package provides detailed technical information pertaining to the options and data considered by the Town of Los Gatos to implement VMT as an impact criterion.

The TA Guidelines present the Town’s approach for determining the need for a transportation analysis, its content, and identifying acceptable transportation improvements for land use and transportation projects proposed within Los Gatos. The TA Guidelines establish a transportation analysis protocol for the following:
1 Senate Bill 743 (SB 743) changed some of the transportation significance criteria under the California Environmental Quality Act (CEQA) CEQA. Specifically, vehicle level of service (LOS) is no longer used as a determinant of significant environmental impacts, and a vehicle miles traveled (VMT) analysis is required.

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1 • Environmental analysis
• General Plan consistency
• Congestion Management Program (CMP) evaluation
• Mobility deficiency criteria and thresholds
• Guidance on acceptable transportation improvements
Town staff will review transportation studies and reports based on the process presented in the TA Guidelines. However, each project is unique, and the TA Guidelines are not intended to be prescriptive beyond practical limits. Not all criteria and analyses described in the TA Guidelines will apply to every project. Early and consistent communication with Town staff is encouraged to confirm the type and level of analysis required for each study.

1.2 Environmental Evaluation
The TA Guidelines outline the methods and thresholds with which to evaluate projects consistent with the latest CEQA Statue & Guidelines.

The latest CEQA Statue & Guidelines include revised Appendix G Checklist questions for transportation impact evaluation. The four questions are as follows:

Would the project:
a) Conflict with a program, plan, ordinance, or policy addressing the circulation system, including transit, roadway, bicycle, and pedestrian facilities?
b) Would the project conflict or be inconsistent with CEQA Guidelines Section 15064.3, subdivision (b)? c) Substantially increase hazards due to a geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment)? d) Result in inadequate emergency access?

1.3 Project Types
A TA is prepared for a project before a discretionary action is taken. The following types of projects, which involve development activity or infrastructure changes in and around the Town of Los Gatos and affect the adjacent transportation system, should be evaluated for TA requirements. • Land use entitlements or changes in use requiring discretionary approval by Los Gatos, which include General Plan amendments, specific plans (and related amendments), zoning changes, use permits, planned developments, and tentative subdivision maps; or any modifications of use that would generate 20 or more new Peak Hour (vehicle) Trips or at the discretion of the Town’s Traffic Engineer
• Land use activity advanced by agencies other than Los Gatos that is subject to jurisdictional review under state and federal law, such as school districts, Santa Clara Valley Transportation Authority (VTA) Board of Directors, and others; or advanced within Los Gatos by agencies other than the

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Town and inconsistent with the Town’s General Plan.
• Transportation infrastructure modification or expansion, including capital improvement projects on Town roads, county roads, and state highways that may impact Town facilities and services.

1.4 CEQA and Non-CEQA Terminology
To distinguish the CEQA analysis from the non-CEQA analysis (i.e., the local transportation analysis) the analyses apply different terminologies as summarized below in Table 1.

Table 1: Comparison of Select CEQA and Non-CEQA Terms
CEQA Term Non-CEQA Term
CEQA Transportation Analysis Local Transportation Analysis Significance criteria Threshold or performance standard Significant impact Deficiency
Mitigation measure Mitigation improvement
Baseline Conditions Existing Conditions and Background
Conditions
Future Year Cumulative Conditions Cumulative Conditions

2. Determining the Level of Transportation Analysis
Unless explicitly waived by the Town, a TA may be required when any one of the following conditions is met.
• A project has the potential to create a significant transportation environmental impact under CEQA.
• A project has the potential to generate daily vehicle miles traveled greater than the Town’s General Plan future year VMT projections.
• For local transportation analysis, a project has the potential to generate 20 or more new Peak Hour (vehicle) Trips.
• A project that is not consistent with the development density established by existing zoning, community plan, or general plan policies for which an environmental impact report (EIR) was certified, per CEQA Statue & Guidelines Section 15183.
• A project will alter physical or operational conditions on a Town pedestrian facility, bicycle facility, transit facility or service, or other transportation facility. • An Accessory Dwelling Unit (ADU) of 750 square feet or smaller shall be exempted from the requirements of Transportation Analysis and the Transportation Impact Fees.

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In general, a TA is applicable for two to five years. After two or more years of inactivity, a TA may need to be updated to reflect changes in the study environment, including traffic growth and other circulation issues.

Nothing in the Transportation Impact Policy shall prohibit or restrict a Project applicant from completing a local transportation study for a Project anticipated to generate less than 20 new Peak Hour trips.

2.1 CEQA Relief for Projects Consistent with General Plan or Zoning Per CEQA Statue & Guidelines Section 15183, projects consistent with a general plan, zoning action, specific plan, and certified environmental impact report (EIR) would not require additional environmental review, except as might be necessary to examine whether there are project-specific significant effects.

Additionally, projects consistent with a general plan, zoning action, or specific plan where cumulative impact(s) were adequately addressed in a prior EIR would not require further CEQA transportation analysis. As noted below, projects consistent with the Town’s General Plan, as determined by the Community Development Director, will not be required to do any VMT Analysis since the Town is taking a Townwide approach for VMT impact mitigation.

2.2 CMP Consistency Screening
Projects should reference the most recent VTA Transportation Impact Analysis (TIA) Guidelines to determine the need for a transportation impact analysis. In most cases, projects that generate fewer than 100 net new peak hour vehicle trips are not required to conduct VTA’s CMP transportation analysis.

2.3 Recommended Process and Documentation
In coordination with Town staff, the project applicant shall retain a transportation professional to conduct the TA. The transportation consultant should seek Town acceptance of the scope of work before initiating the analysis. In some cases, review by other affected jurisdictions will be required. Appendix A:

Transportation Analysis Report Format Outline contains a recommended outline for the TA document.

Each TA will begin by preparing a scope of work that describes the project description, site location, analysis methods, area-wide assumption, study elements, study time periods, and traffic data collection methods. To finalize a TA scope of work for the local transportation analysis, the project applicant will provide an estimate of the project trip generation and trip distribution . These estimates and scope of work should be shared with Town staff to finalize the scope of services. Overall, the TA report will address:
1) environmental analysis, 2) project site access and circulation, and 3) other transportation impacts and traffic deficiencies.

2.4 Contact with Appropriate Town Staff
To minimize the potential for delays in project processing, it is important for the TA to be prepared in coordination with Town staff. Timely coordination will also ensure that potential transportation improvements and environmental consequences are considered as early as possible in the planning process, as deficiencies and corresponding improvement costs can have a substantial effect on project costs. Coordination should include the following:

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• A pre-application meeting, which will include a discussion of the TA requirements. • Development of an approved scope of work, which includes trip generation, study area, analysis scenarios and parameters, data requirements, and provisions for pedestrians, bicyclists, and transit users.
• Approval of the project trip generation (person and vehicle) and trip distribution. • Review of all assumptions and the results of Existing Conditions analysis. • Review of the administrative draft report, with adequate time for comments. • Review of a draft report, with adequate time for comments.

If the TA report information will be incorporated into the transportation and circulation section of an environmental document (e.g., Initial Study, Mitigated Negative Declaration, or Environmental Impact Report), the format of this report may need to be discussed with the environmental consultant, a peer reviewer, and/or Town staff. Upon circulation of the draft environmental document, the format of the final TA report may need to be discussed with the environmental consultant.

2.5 Consultation with Other Jurisdictions
If the study area overlaps with other jurisdictions, staff from other jurisdictions must be consulted to verify study locations, the impact significance criteria, and to consider any current development applications. Section 15086 of the CEQA Statue & Guidelines22 shall be followed as the basis for satisfying consultation requirements. In most cases, overlap will occur for roadway system analysis, but may also include impact analysis of active transportation modes (bicycling and walking), as well as transit system facilities and services.

2.6 Project Trip Generation and Trip Reductions
Person and vehicle trip generation rates are a way to estimate the number of expected pedestrian, bicycle, transit, and vehicle trips that a proposed development will generate. These rates establish the basis of analysis for a proposed project and its effects on the transportation network. Person trip generation should be reported for walking, bicycle, and pedestrian trips, and vehicle trip generation should be reported for single-occupant, and carpool.

Methodologies to estimate project trip generation and trip reductions shall be prepared consistent with the latest VTA TIA Guidelines, with the exceptions described in this document. 2 California Environmental Quality Act Statute & Guidelines, 2020.

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2.6.1 Vehicle Trips
Consistent with the VTA TIA Guidelines, pass-by trips shall not be considered in calculating the 20 new Peak Hour Trip threshold that triggers the requirement for conducting a comprehensive local transportation analysis report.

The Institute of Traffic Engineers (ITE) Trip Generation Manual trip generation rates for Specialty Retail Center shall apply to all Specialty Retail.

Uses within the Central Business District (C-2 Zone} are expected to change periodically as part of the natural business cycle. For the purpose of Transportation Impact Fees, changes in use without changes in net building square footage within the C-2 Zone shall not be considered to create a traffic deficiency, shall be exempt from this policy, and no fees shall be charged for a change in use. Any increases in building square footage shall pay impact fees at the ITE Shopping Center rate or comparable equivalent rate for the expanded area, as determined by the Town Traffic Engineer.

The Town reserves the right to require the project sponsor to conduct local trip generation surveys for select projects, depending on land use and conditions in the field.

2.6.2 Person Trips
Person trip generation rates should be developed from empirical studies, person travel survey data, or conversion of vehicle trip rates to person trip rates using a vehicle occupancy factor. In addition, person trip generation by mode may be derived using an approved analysis tool that incorporates data from local trip generation surveys or published trip generation rate data.

2.6.3 Establishing Trip Generation Rates for an Unspecified Use For projects where the ultimate land use is not certain (for example, a large subdivision of flexible commercial-industrial parcels), there are two options for establishing the trip generation rates. • Option 1: Town staff will recommend the use of the highest traffic intensity among all permitted uses to establish traffic deficiencies.
• Option 2: Estimates can be made using a lower traffic intensity use if the Town and developer establish a maximum trip allowance. Once a proposed land use has been identified, then: 1) the subdivision trip generation allowance must be monitored by the Town as development occurs; and 2) the TA report may need to be updated.

2.6.4 Credit for Existing Trips – Local Analysis
The estimate of new trips generated by the proposed development project may include credit for trips associated with existing uses on the site. Uses are considered as existing if they are actively present on the project site at the time that data is gathered for the transportation impact analysis. Similarly, if a

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planned (but not constructed) use was already permitted for the site and an improvement(s) was identified and funded, the new TA only needs to assess the effects of additional trips above and beyond the trips for the permitted use. Additionally, certain commercial land uses attract vehicle traffic that currently exists on the roadway, rather than generating new trips.

Understanding there are permitted reductions that may be taken under the circumstances listed above, the Town requires that any reductions in project vehicle trip generation are applied according to the latest VTA TIA Guidelines.

In calculating new Peak Hour Trips for purposes of determining whether or not a TA report is required pursuant to this Policy, trip credit shall be granted for an existing use or the most recent former use.

In calculating new Average Daily Trips for purposes of determining the amount of the Transportation Impact Mitigation Fee due, trip credit shall be granted for an existing use or the most recent former use.

Where the property is vacant, the most recent former use shall be used.

Where a portion of the space is changing use, credit will apply to the proportionate square footage of the space under review.

Where the change in use results in fewer trips than the existing or former use, no credit or refund will be due the applicant.

2.6.4 Credit for Existing Trips – VMT Analysis
For the evaluation of vehicle miles of travel, VMT credit for the prior use depends on how the project changes the baseline condition, if the project sponsor had ownership and control of the previous land use, and the reason for stopping the previous land use. Baseline conditions are typically defined at the beginning of an environmental analysis and a CEQA analysis needs to isolate the effects of the project to clearly define the project’s effect on the baseline condition. To receive VMT credit, the project sponsor needs to demonstrate continuous ownership of site, with on-site occupancy paused only due to the redevelopment activity and not because of some economic or other condition outside the control of the project sponsor. However, this credit should only be applied to total project generated VMT and should not be included when calculating a VMT rate.

2.7 Vehicle Miles Traveled Methods
As noted, projects consistent with the Town’s General Plan, as determined by the Community Development Director, will not be required to do any VMT Analysis since the Town is taking a Townwide approach for VMT impact mitigation. Although the calculation of VMT is simply the number of cars multiplied by the distance traveled by each car, VMT performance measures can be reported differently.

At a minimum, the VMT analysis for Los Gatos will be prepared for two purposes:

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• Greenhouse gas and air quality analysis using project generated VMT on a VMT per service population basis (residents + employment).
• Environmental evaluation by land use and/or transportation project.

The project generated VMT from new population and employment growth and the boundary (total) VMT for a specific geographic area will be prepared using the latest Santa Clara Valley Transportation Authority (VTA)-City/County Association of Governments of San Mateo County (C/CAG) Bi-County Model (“VTA Travel Model”). Because emissions rates vary by vehicle speed, the project generated VMT and total VMT should be disaggregated by speed bin (typically in five mile an hour increments of speed from 0 to ~80 miles per hour) to allow different emissions factors to be applied at different speeds, which allows for the preparation of a more refined emissions analysis.

3. Transportation Analysis (CEQA) for Land Use Projects For an environmental analysis, these TA Guidelines incorporate the use of vehicle miles traveled (VMT) to disclose the effects of the project on the environment. Town staff completed an SB 743 implementation process, which included the preparation of the SB 743 Implementation for the Town of Los Gatos (July 2020) document package. The document package provides detailed technical information pertaining to the options and data considered by the Town of Los Gatos to implement VMT as an impact criterion.

At its November 17, 2020 meeting, the Town Council adopted Resolution 2020-045, Designating the Use of Vehicle Miles Traveled as the Metric for Conducting Transportation Analyses Pursuant to the California Environmental Quality Act and Establishing the Thresholds of Significance to Comply with California Senate Bill 743.

The CEQA Statue & Guidelines allow exemptions to projects meeting certain criteria. Project applicant may review the exemptions before preparing CEQA analysis for projects.

Based on the Town’s implementation of SB 743, the following methods should be used to determine VMT impact thresholds and mitigation requirements for land use projects.

3.1 VMT Analysis Methods
The Town elected to conduct a complete VMT analysis consistent with the General Plan future year VMT projections based on long-term expectations for air quality and GHG expectations as part of its General Plan EIR, so that it could make specific use of CEQA Statue & Guidelines Section 15183 to streamline project-specific CEQA analysis that is consistent with its General Plan and other Town documents. For the Town of Los Gatos, addressing transportation VMT impacts in the Town General Plan EIR is a useful way of understanding VMT impacts and how VMT reduction should be balanced against other community values related to the environment, social justice, and the community. By conducting a Town-wide VMT impact analysis, the Town is able to develop a program-based VMT mitigation approach. The concept of a ‘program’ approach to impact mitigation is commonly used in a variety of technical subjects, including

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transportation, air quality, GHG, and habitat. Absent a new program-level VMT mitigation approach, there are limited feasible mitigation options for project sites, and as a result limited ability to reduce VMT. Also, practically speaking, without feasible mitigation, significant VMT impacts would be significant and unavoidable (SAU). Under these circumstances, a project must prepare an EIR, thus adding time and cost to environmental review compared to an initial study/negative declaration (IS/ND) that relies on streamlining offered in the CEQA Statue & Guidelines.

Should a project not be consistent with the General Plan, as determined by the Community Development Director, or for some other reason unable to benefit from streamlined CEQA review under CEQA Statue & Guidelines Section 15183, the following sections provide details on how to conduct a complete VMT analysis for land use plans and projects in the Town of Los Gatos.

3.1.1 Regional Transportation Plan/Sustainable Communities Strategy and General Plan Consistency The first step in assessing project impacts is to determine if the project land use is contained within the Town of Los Gatos residential and non-residential land use allocations in the current Regional Transportation Plan/Sustainable Communities Strategy (RTP/SCS), and if the project is consistent with the latest General Plan. If the project is not consistent with the RTP/SCS and/or the latest General Plan, amendments to those documents or the project would be needed prior to proceeding with the project review.

3.1.2 VMT Assessment
Projects not consistent with the current RTP/SCS or the latest General Plan are required to complete a VMT analysis using the VTA Travel Model to determine if there would be a significant VMT impact. The tools and methodology of the VMT analysis shall be approved by PPW Director (or Traffic Engineer). The impact analysis includes two types of VMT:

1. Total Project Generated VMT – Daily VMT of all vehicle trips, vehicle types, and trip purposes for all project land uses, presented as a total project generated VMT.

2. Project’s Effect on VMT within the Town of Los Gatos. VMT that occurs within the Town of Los Gatos by any type of vehicle. This captures all on-road vehicle travel on a roadway network for any purpose, and includes local trips as well as trips that pass through the area without stopping.

If the land use control totals increase between the without and with project conditions in the travel model, these VMT metrics will need to be expressed on a per service population (residents, employees, and other populations generating the VMT) basis to understand the effects of the project between scenarios.

The types of VMT analysis are evaluated for the following scenarios:

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• Baseline Conditions – Conditions in the baseline year for the CEQA analysis, which is most often chosen as the time of notice of preparation (NOP) of an environmental document, but may be chosen as the baseline year of the VTA Travel Model, if land use and transportation network conditions can be considered largely unchanged between the model baseline year and the date of the NOP. For compliance with the CEQA Statute & Guidelines Section 15125(a), the transportation impact analysis must include a description of the physical environmental conditions near the project, as they exist at the time the NOP is published, or if no NOP is published, at the time environmental analysis is commenced, from both a local and regional perspective. Baseline VMT estimates will be prepared using the most recent base year VTA Travel Model. • Baseline with Project Conditions – The project land use is added to the project Transportation Analysis Zone (TAZ), or a separate TAZ may be created to contain the project land uses. A full model run is performed and VMT changes (by metric of choice) are isolated for the project TAZ and across the full model network. The model output must include reasonableness checks of the production and attraction balancing to ensure the project effect is accurately captured. If this scenario results in a less-than- significant impact, then additional cumulative scenario analysis may not be required.
• Future Year Cumulative Conditions – Conditions requiring an RTP/SCS and/or General Plan amendment are also required to evaluate the project effect on VMT under Future Year Cumulative Conditions. This scenario buildout of the region’s land use and transportation system also provides the long-range view of future travel patterns. Future Year Cumulative Conditions VMT estimates should be based on the horizon year of the most recent VTA Travel Model, ensuring the model does not already contain the land uses or transportation improvements associated with the project.
• Future Year Cumulative with Project Conditions – The project land use is added to the project TAZ, or a separate TAZ is created to contain the project land uses. The addition of project land uses may be accompanied by a reallocation of a similar amount of land use from other TAZs throughout the model area (focusing on Santa Clara County), especially if the proposed project is significant in size such that it would potentially reduce the potential for development throughout the rest of the model area. Land use projects will generally not change the Future Year Cumulative Conditions control totals for population and employment growth within the model area. Instead, they will influence the land use supply through changes in General Plan land use designations and zoning. If project land uses are simply added to the Future Year Cumulative Conditions scenario, then the analysis should reflect this limitation in the methods and acknowledge that the analysis may overestimate the project’s effect on VMT. A full model run is performed and VMT changes (by metric of choice) would be isolated for the project TAZ and across the full model network. The model output must include reasonableness checks of the production and attraction balancing to ensure the project effect is accurately captured.

The model output should include the two VMT metrics listed earlier: 1) total project generated VMT, and 2) project’s effect on VMT using the total boundary VMT. Emissions vary by speed bin; disaggregating VMT by speed bin allows different emissions factors to be applied at different speeds, which allows for the preparation of a more refined emissions analysis. The total boundary VMT is needed as an input for air quality, greenhouse gas (GHG), and energy impact analysis, while the project generated VMT metrics are

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used for the transportation impact analysis.

Both “with project” scenarios noted above will summarize the two types of VMT and be compared to the without project condition.

Project generated VMT should be extracted from the VTA Travel Model by combining either the origindestination (for total VMT) or production-attraction (for the other metrics) trip matrices and congested skims (travel distances for each origin-destination pair in the travel mode) from final assignment. The VMT should be adjusted to reflect trips that extend beyond the model boundary. The project’s effect on VMT should be estimated using the Town limit boundary and extracting the total link-level VMT for both the without and with project conditions. Additional VMT metric specifications may be found in the SB 743 Implementation for the Town of Los Gatos (July 2020) document package.

If a project is mixed-use (i.e., composed of both residential and retail/office uses), project generated VMT should be extracted for both the total VMT and VMT per service population (residents and employees).

3.2 VMT Significance Thresholds
The Town Council adopted Resolution 2020-045, Designating the Use of Vehicle Miles Traveled as the Metric for Conducting Transportation Analyses Pursuant to the California Environmental Quality Act and Establishing the Thresholds of Significance to Comply with California Senate Bill 743. The thresholds balance the Town’s priorities with respect to competing objectives, including Los Gatos’s geographic and transportation context, greenhouse gas reduction goals, interest in achieving the state’s greenhouse gas reduction goals, and the latest General Plan goals and policies related to land use mix, economic development, and housing provision.

VMT analyses shall evaluate a project’s VMT impacts based on the thresholds established in the latest Council-adopted resolution.

3.3 VMT Mitigation Measures
To mitigate VMT impacts, the project shall be conditioned for implementation of mitigation measures in the following categories:

1. Modify the project’s built environment characteristics to reduce VMT generated by the project;

2. Implement transportation Demand Management (TDM) measures to reduce VMT generated by the project; and/or

3. Participate in a VMT fee program and/or VMT mitigation exchange/banking program (if they exist) to reduce VMT from the project or other land uses to achieve acceptable levels.

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The Town is in the process of updating the General Plan and the Draft Environmental Impact Report (DEIR) for the 2040 General Plan was released for public review in July 2021. The 2040 General Plan DEIR identifies significant but unavoidable transportation impacts and the mitigation measures. The Town is taking a Town-wide approach for VMT impact mitigation.

Attachment 3, VMT Reduction Actions for the Town of Los Gatos, provides a framework for mitigating VMT in the Town. Attachment 2, Transportation Mitigation Improvements Project List, has many improvements that are consistent with the VMT Reduction Strategies.

Evaluation of VMT reductions should be conducted using state-of-the-practice methods, recognizing that many of the TDM strategies are dependent on building occupant performance over time. As such, actual VMT reduction cannot be reliably predicted, and monitoring may be necessary to gauge performance related to mitigation expectations.

4. Transportation Analysis (CEQA) for Transportation Projects Transportation Analysis for transportation projects shall follow the latest CEQA Guidelines and related technical advisories from the Governor’s Office of Planning and Research (OPR).

The Thresholds of Significance for all transportation projects are established in the latest Council-adopted resolution.

Transportation projects that reduce, or have no impact on, vehicle miles traveled should be presumed to cause a less than significant transportation impact.

In 2020 Caltrans adopted its guidance under SB 743. The department’s Transportation Analysis Framework and Transportation Analysis for CEQA provide guidance for assessing induced travel impacts from prospective projects on the State Highway System. CEQA analysis for proposed transportation projects on the State Highway System should also follow Caltrans guidance.

5. Transportation Analysis per the Town’s Transportation Policies The contents and extent of a local transportation analysis per the Town’s General Plan depend on the location and size of the proposed development, the prevailing transportation conditions in the surrounding area, and questions from decision-makers and the public. The Town is committed to a wellconnected transportation system that enables safe access for all modes of travel. The methods presented in this chapter include robust data collection and analysis techniques for pedestrian, bicycle, and transit networks, in addition to vehicle circulation.

The local transportation analysis shall be prepared consistent with the latest VTA TIA Guidelines, with the exceptions described in this document.

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5.1 Study Area
The study area is determined by evaluating the project location and how it may affect all transportation modes and facilities. It is not simply a map showing where the project is located. Rather, the study area is the area of influence of a project. Each local transportation analysis will consider the adjacent transportation system for site access and circulation of land development projects and street modifications for transportation projects. To properly assess the site access, the Town may require offsite intersection analysis and/or other multimodal analysis.

The study area may include the nearest CMP facility to evaluate the proposed project’s conformity with the CMP facilities.

Applicants should consult with Town staff early regarding the need for a local transportation analysis based on local or site-specific issues, especially those related to pedestrians, bicyclists, and transit users.

5.2 Key Study Elements
The extent and complexity of a local transportation analysis will vary on the project attributes. Table 2 summarizes the basic requirements for a local transportation analysis for every project requiring a complete transportation analysis. Specific significance criteria for each of the listed elements are described in further detail in the Transportation Analysis (CEQA) for Land Use Projects and Transportation Analysis (CEQA) for Transportation Projects sections. To avoid substantial off-site improvements or changes to the project site plan/description after the transportation analysis is completed, a preliminary site plan shall be included for a “fatal flaw” evaluation.

Table 2: Local Transportation Analysis – Evaluation Criteria Study Element Evaluation Criteria
General Plan
Consistency
Evaluate the project against goals, policies, and actions set forth in the latest General Plan and other applicable Town plans.

Parking
Compare the project parking plan with Town and local specific plan standards and discuss how the proposed supply will affect demand for walking, bicycling, and transit modes. If a mix of land uses is proposed on site, or complements adjacent land uses, justify how the development will make use of shared on-site parking.

On-Site
Circulation
Review and evaluate site access locations, turning radii, truck loading areas, emergency access, and othersite characteristics with respect to operations and safety for all modes of transportation.

Pedestrian
Facilities
Identify any existing or planned pedestrian facilities that may be affected by the project. Document how the project will affect local pedestrian circulation (e.g., disclose how widening a road or adding a driveway will affect pedestrian safety and walking time).

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Table 2: Local Transportation Analysis – Evaluation Criteria Study Element Evaluation Criteria
Bicycle Facilities Identify any existing or planned facilities that may be affected by the project.

Transit
Identify any existing or planned transit facilities that may be affected by the project. If appropriate, document how the project improves access to or utilization of transit. For system planning, use crush load as capacity, not seated capacity.

Safety
Assessment
Evaluate project trips added to safety enhancement projects within the study area that are proposed as part of other future safety studies by the Town or other agencies.

Trucks (or Other
Large
Vehicles)
For relevant industrial projects, identify the number of truck trips that will be generated, and design facilities necessary to accommodate these trucks.

Automated
Vehicles or
Transportation
Network
Company Pickup/Drop-Off
For projects where automated vehicles and/or transportation network companies may have a large concentration of pick-up/drop-off, the project site circulation and pick-up/drop-off areas must be reviewed to identify opportunities and constraints of the project site. Modifications to the site circulation and/or pick-up/drop-off may be recommended.

Off-Site Traffic
Operations
All roadway facility analysis and Level of Service should be conducted using the latest version of the Highway Capacity Manual (HCM).

Intersection
Traffic Control
Evaluate unsignalized intersections located within the study area to determine appropriate traffic control. Analysis should include documentation of the appropriateness of a roundabout as an alternative or replacement to a traffic signal.

Other Issues
Consider other issues on a case-by-case basis (e.g., construction deficiencies, queuing between closely spaced intersections, emergency access, special event traffic)
Other
Jurisdictional
Requirements
In situations where several agencies must approve a development or are responsible for affected roadways, the applicant must contact lead and responsible agencies to determine issues to be addressed, scope of study, etc.

In general, the applicant will be responsible for analyzing project impacts against appropriate jurisdictional thresholds; however, the analysis method will be determined by the Town in compliance with CEQA, and the impacts will be mitigated consistent with Town standards.

5.3 Data Collection
Accurate data is essential to achieve a high level of confidence in local transportation analysis results.

Existing transportation data shall be collected using the requirements set forth below. Data should be presented on maps or figures where appropriate. To address the specific needs of each project, the extent of data collected shall be at the discretion of Town staff.

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• Pedestrian/Bicycle Facilities – Document the existing pedestrian and bicycle facilities serving the project site. Elements will include presence and width of sidewalks, curb ramps, crosswalks, or other pedestrian facilities providing access to the nearest attractors of the project site, such as transit stops, neighborhood attractors and/or complimentary land uses, and bicycle facilities (e.g., routes, lanes, or shared-use paths) within a two-mile bicycling distance of the project site.

Document barriers, deficiencies, and high pedestrian-demand land uses, including schools, parking, senior housing facilities, and transit stops or centers. The report will note any deficiencies or enhancements planned or recommended in the latest General Plan or future planning documents.
• Transit Facilities and Ridership – Document transit lines nearest to the project site, including stop locations, frequency of service, and any capacity issues. It will also describe transit stop amenities (e.g., benches, shelters, etc.).
• Multimodal Peak-Period Turning Movement Counts – Turning movement counts, including vehicles, bicycles, and pedestrians, will be collected for each study time period at all study intersections. The following parameters will be followed (fall and spring days while school is in session are preferred):
• Data collection will cover at least two hours to ensure the peak hour is observed. • As applicable, 48-hour machine counts will be used to identify the peak period before conducting other counts or analysis.
• Traffic volumes should not be influenced by a holiday, weather, construction, or other temporary change.
• The percent of traffic that consists of heavy trucks will be noted/estimated during data collection.
• Some projects may require vehicle classification or occupancy counts. Consult with Town staff on a case-by-case basis.
• Traffic counts that are older than two years at study initiation will not be used without consultation and approval by Town staff. These counts may need to be adjusted to reflect current year traffic volumes.
• Daily Traffic Counts – Collect data for all study roadway segments using the parameters described above for peak period turning movement counts, with the exception of bicycle and pedestrian volumes. Daily counts are used to size facilities (e.g., 2-lane vs. 4- lane) and to identify temporal changes in traffic.
• Roadway Geometry – Document existing roadway and intersection geometries and lane configurations. Information from aerial photography and street views should be verified based on a site visit(s).
• Intersection Controls and Signal Timings – For use in intersection analysis, intersection control types and signal timings and phasing should be based on signal timing sheets (available from Los Gatos or Caltrans) and verified during site visits.
• Five-Year Collision Data – Obtain Statewide Integrated Traffic Records System (SWITRS) through the local California Highway Patrol or through the following web site: www.chp.ca.gov/switrs.

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• Mode Split – Summarize daily and peak hour mode split for the study area land uses. Data could include U.S. Census journey-to-work data, empirical surveys, or any other available surveys.

5.4 Project Site Access and Circulation Review
A detailed site plan review is required for all projects. The local transportation analysis should include a review and summary of findings of the following qualitative and quantitative features. • Consideration of roundabouts are encouraged. Conduct roundabout analysis as required by Town staff.
• Existence of any current traffic problems in the local area, such as a high-collision location, nonstandard intersection or roadway, or an intersection in need of a traffic signal or a roundabout. • Applicability of context-sensitive design practices compatible with adjacent neighborhoods or other areas that may be impacted by the project traffic. • Proximity of proposed site driveway(s) to other driveways or intersections. • Adequacy of the project site design to convey all vehicle types. • Number and type of parking provided, including vehicle and bicycle parking. • On- and off-street loading requirements.
• Adequacy of on-site vehicle, bicycle, and pedestrian circulation and provision of direct pedestrian paths from residential areas to school sites, public streets to commercial and residential areas, and the project site to nearby transit facilities.

An important aspect of a TA is to provide sufficient information for the Town to determine that a project is consistent with the latest General Plan and other applicable Town policies, plans, and standards. As such, individual projects must be reviewed against relevant policies contained in the latest General Plan or other plans and policies. Applicants should review the full policy statements in the latest General Plan Mobility Element.

If the study area extends into an adjacent jurisdiction, the applicant may be responsible for analyzing project generated operational impacts in these jurisdictions. These include intersection or segment locations in any other jurisdiction, including Caltrans-maintained facilities. The applicant shall refer to current policies in the respective jurisdiction to identify the appropriate significance criteria.

5.5 Analysis Scenarios
The range of scenarios includes Existing Conditions, Background Conditions, and Cumulative Conditions.

Projects consistent with the latest General Plan will only be required to complete the Existing and Background conditions analysis; where Existing Conditions looks at the effect of the proposed project on the existing system within the next year or two, Background Conditions typically looks at a longer time frame of about three to five years. Inclusion of all three analysis conditions (e.g., Existing, Background, and Cumulative), would typically occur for large development projects, General Plan amendments, specific plans (and related amendments), with Cumulative Conditions having a time horizon of 10 to 20 years.

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The following analysis scenarios will document existing or future conditions, any deficiencies, and identify deficiencies that will result from the addition of the project. Each scenario will include a qualitative description of transportation facilities for all modes (and any planned enhancements), traffic volumes, and a quantitative analysis of intersection LOS. Key study elements are identified in the Multimodal Analysis Methods section of this chapter. Details regarding each local transportation analysis scenario are presented below.
• Existing Conditions – These conditions are based on recent field observations and recent traffic count data.
• Existing with Project Conditions – Traffic volume forecasts for roadway analysis reflecting Existing Conditions with traffic generated by the proposed project. For reuse or conversion projects, this may involve accounting for any existing use of the site that remains or will be removed. It should also qualitatively describe how the project will affect transportation for other modes, including compliance or relation to other Town documents.
• Background Conditions – Traffic volume forecasts for roadway segment and intersection analysis should reflect Existing Conditions with growth due to approved development that is expected to be operational before or concurrently with the proposed project. This scenario may not be needed if the study area has limited or no approved developments. • Background with Project Conditions – This scenario represents the Background Conditions with vehicle trips added by the proposed project. It provides decision-makers and the public with a view of conditions with all recently approved development and physical improvements, including the proposed project.
• Future Year Cumulative Conditions – This scenario represents transportation conditions for all travel modes in the study area reflecting all approved projects, pending projects, or expected development of other areas of Los Gatos designated for growth under the latest General Plan or specific plan. In most cases, the project site will likely be vacant under this scenario. In some cases, this scenario may need to account for any existing uses on the site that could continue, and potential increases in development allowed by ministerial approvals. • Cumulative with Project Conditions – This scenario represents the cumulative future transportation conditions with anticipated changes to the transportation system and the additions of project trips, and provides the long-range view of future traffic operations.

5.6 Analysis Time Periods
Based on the land use of the proposed project and upon consultation with Town staff, the study shall analyze traffic operations during the peak one hour of the following time periods:
• Weekday morning peak (7:00 – 10:00 AM)
• Weekday evening peak (4:00 – 7:00 PM)

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For some projects, the Town may substitute or require additional peak hour analysis for the following time periods as approved or requested by the Town’s Traffic Engineer:
• Weekday afternoon peak (2:00 – 4:00 PM)
• Friday evening peak (4:00 – 7:00 PM)
• Weekend midday peak (11:00 AM – 1:00 PM)
• Sunday or holiday evening peak (4:00 – 7:00 PM)
For example, retail commercial projects should evaluate operations for Saturday midday peak hour conditions, in addition to the standard weekday morning and evening peak periods. The determination of study time periods should be made separately for each proposed project, based upon the peaking characteristics of the project generated traffic and peaking characteristics of the adjacent street system and land uses.

5.7 Multimodal Analysis Methods
The report should provide a quantitative and/or qualitative evaluation of the project’s potential adverse or beneficial effects on transportation facilities and services related to pedestrians, bicyclists, and transit users.

For some projects, more detailed multimodal analysis may be required. Such analysis shall be decided upon in consultation with Town staff and consider new tools, methods, and performance measures, such as those listed below.
• Multimodal LOS – The latest Highway Capacity Manual (6th Edition) contains methods for multimodal LOS.
• Person Delay – Simulation models can be used to measure system performance in terms of overall person-delay for all modes within a transportation network. This method provides a better decision-making tool for developing improvements to promote efficient movement of people, rather than a particular type of vehicle.
• Safety Assessment – Evaluate whether the project adds vehicle trips to a safety improvement identified within the study area. (If a project may affect a Caltrans facility, a safety assessment may be needed for CEQA purposes as well.)
• Bicycle Level of Stress (LTS) – Evaluate LTS for all bicycle facilities within a two-mile bicycling distance of the project site. There are several methods for evaluating LTS for bicycle facilities, which generally rely on street widths/number of vehicle lanes, vehicle speeds, daily volumes, and type of bicycle facility to evaluate “low stress” bike networks. The Low-Stress Bicycling and Network Connectivity (2012) report and the National Association of City Transportation Officials (NACTO) Urban Bikeway Design Guide, Second Edition (2014) contains methods for LTS. • Pedestrian Level of Stress (LTS) – Evaluate LTS for all pedestrian facilities providing access to the nearest attractors (e.g., transit stops, neighborhood attractors and/or complimentary land uses) of the project site. Compared to bicycle LTS, there are parallel methods for calculating pedestrian comfort using best practiced from the NACTO Urban Street Design Guide (2013) and pedestrian

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safety research. As with bicycle comfort, pedestrian comfort is based on a variety of factors ranging from the quality and presence of sidewalks to the conditions of the adjacent roadway (speed, number of travel lanes, frequency of trucks).
• Activity Connectedness – Travel time for each mode (e.g., walking, bicycles, transit, and vehicles) between the project and surrounding land uses can be used to gauge the degree of accessibility for a project. The Town desires to minimize travel time to necessary destinations while minimizing unnecessary vehicle travel. Tools such as geographic information systems or online tools (e.g., Index and Walk Score) can be used to gauge this measure specifically for walking. The main idea is to evaluate activity centers and destinations around projects to ensure that walk times to necessary destinations are minimized and the walking experience is comfortable.

5.8 Traffic Operations Analysis
Traffic operational deficiencies shall be analyzed using standard or state-of-the-practice professional procedures. The main issues related to traffic operations analysis are the method, input data, and assumptions. These three items influence the level of confidence and the associated level of defensibility of the local transportation analysis. For traffic operations, this requires following the procedures and techniques published in the most recent Highway Capacity Manual (HCM).

Traffic Operations Analysis should be conducted according to the latest VTA Traffic Level of Service Guidelines.

5.9 Mobility Deficiency Criteria
The overall guiding principal of the General Plan 2040 Mobility Element is to, “[p]rovide a well- connected transportation system that enables safe access for all transportation modes, including pedestrians, bicyclists, motorists, and transit riders of all ages and abilities.” Los Gatos evaluates each transportation mode to identify deficiencies. Local transportation analyses evaluate intersection operations focused on specific traffic issues such as queuing and safety. A greater emphasis is placed on pedestrian, bicycle, and transit facilities and services, in part to reduce traffic congestion and air quality impacts associated with automobile use. Table 5 outlines deficiency criteria for each mode. The mobility deficiency criteria can be used to identify conflicts with existing or planned multimodal facilities.

Table 5: Mobility Deficiency Criteria
Study Element Deficiency Determination
Parking Project increases off-site parking demand above a level required by the Town Zoning Code and/or desirable by the Town.

On-Site Circulation
Project designs for on-street circulation, access, and parking fail to meet Town standards. Where Town standards are not defined, industry standards [Highway Design Manual, California Manual on Uniform Traffic Control Devices (MUTCD), etc.] should be referenced, as appropriate.

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Table 5: Mobility Deficiency Criteria
Study Element Deficiency Determination
Failure to provide adequate accessibility for service and delivery trucks on site, including access to loading areas. Project will result in a hazard or potentially unsafe conditions without improvements.

Pedestrian
Facilities
Project fails to provide safe and accessible pedestrian connections between project buildings and adjacent streets, trails, and transit facilities.

Bicycle Facilities
Project disrupts existing or planned bicycle facilities or is otherwise inconsistent with the latest General Plan, Bicycle and Pedestrian Master Plan, or other related plans. Project adds bicycle trips along project frontage to an existing facility that needs improvements per the latest BPMP.

Transit Project disrupts existing or planned transit facilities and services or conflicts with Town adopted plans, guidelines, policies, or standards.

Heavy Vehicles
(Trucks and
Buses)
A project fails to provide adequate accommodation of forecasted heavy traffic or temporary construction-related truck traffic consistent with Town or industry standards (Highway Design Manual, MUTCD, etc.).

Off-Site Traffic
Operations
95th percentile vehicle queues exceed the existing or planned length of a turn pocket. The proposed project introduces a design feature that substantially increases safety hazards.

Signalized
Intersection Traffic
Control
Addition of project traffic causes a signalized intersection to 1) drop more than one level overall or at the worst individual approach delay if it is at LOS A, B, or C or 2) drop at all overall or at the worst individual approach delay if it is at LOS D or below.

Unsignalized
Intersection
Traffic Control
Addition of project traffic causes an all-way stop-controlled or side street stop-controlled intersection to 1) operate at LOS E or F overall or the worst-case movement, and 2) meets the Caltrans signal warrant criteria.

General Plan
Consistency
Evaluate the project against mobility, safety, and other related goals, policies, and actions set forth in the latest General Plan.

Other Subject
Areas
Consider other areas on a case-by-case basis (e.g., construction impacts, queuing between closely spaced intersections, emergency access, special event traffic, etc.).

Requirements
for Other
Jurisdictions
The project exceeds established deficiency thresholdsfor transportation facilities and services under the jurisdiction of other agencies.

5.10 CMP Deficiency Criteria
To determine consistency with the CMP, off-site intersection analysis may be needed and should be applied according to the latest VTA TIA Guidelines.

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5.11 Mitigation Improvements
All project deficiencies should be addressed consistent with the policies of the latest General Plan Mobility Element. Under these circumstances, the applicant should meet with Town staff to identify transportation improvements that address the deficiencies. Table 6 shows example types of improvements to address transportation deficiencies.

Potential improvements may require a more detailed review, often including traffic operations, to demonstrate how they address a specific deficiency.

Selected improvements should be identified whether they will be implemented under Existing Conditions, Background Conditions, or Cumulative Conditions. Background Conditions generally reflect conditions at the time of full occupancy of a project.

If a transportation improvement is selected to address a deficiency, it should include a description of the benefit to traffic reduction generated by a proposed development and how the improvement contributes to the multimodal transportation system in Los Gatos. In addition, all transportation improvements need to consider whether they have secondary effects to VMT [i.e., whether the improvement is VMT inducing per guidance in the OPR Technical Advisory (December 2018, Pages 20-21)].

The improvement shall not unreasonably degrade bicycle, pedestrian or transit access, and circulation. If a project proposes improvements in response to auto LOS deficiency involving a change to existing roadway or intersection geometry, or changes to signal operations, the TA shall analyze and disclose secondary effects on other modes, i.e., whether the mitigation would affect pedestrian or bicycle conditions or increase transit vehicle delay, per the methodologies in 5.7.

Table 6: Example Improvements
Study Element Improvement
Project Modifications
and Transportation
Demand Management
• Alter density or diversity of project uses or integrate affordable housing
• Encourage telecommuting and alternative work schedules • Provide ride-sharing programs to encourage carpooling and vanpooling
• Provide local shuttle service
• Provide employer-sponsored vanpools or shuttles
• Provide pedestrian network improvements
• Provide traffic calming measures and low-stress bicycle network improvements
• Implement car-sharing (e.g., ZipCar) program
• Limit parking supply
• Unbundle parking costs from property costs
• Institute on-street market pricing for parking

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Pedestrian and Bicycle
Facilities
• Provide for access to, from, and through the development for pedestrians and bicyclists
• Construct Class I bicycle paths, Class II bicycle lanes, and other facilities
• Provide secure bicycle parking and shower amenities
• Reduce travel lanes on a street to install a two-way left-turn lane and Class II bicycle lanes
• Add corner bulbouts, reduce curb radii, add pedestrian refuges, or implement other walking-related improvements Transit Facilities
• Provide bus turnouts, bus shelters, additional busstops, and park-and-ride lots
• Fund increases in transit service
Parking Facilities
• Design parking facilities to allow free-flow accessto and from the street
• Provide off-street parking per Town standards or
recommendations
• Implement shared parking among complementary land uses Traffic Control
Modifications
• Provide for yield or stop control
• Evaluate unsignalized intersections with substandard LOS for conversion to roundabout intersection control or
for signalization
• Provide coordination/synchronization of traffic signals along a corridor
• Provide turn-lane channelization through raised islands • Restrict selected turning movements
StreetOperations
Modifications
• Optimize location of access driveway(s)
• Provide improvementsto traffic signal phasing, or lengthen existing turning pocket
• Provide additional through traffic lane(s), right-turn lane(s), and left-turn lane(s) if they do not adversely impact other modes or induce additional vehicle travel
• Reduce travel lanes on a street to install a two-way left-turn lane
• Address congestion pricing on roads or within a specific area

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Appendix A: Transportation Analysis Report FormatOutline Note: Not all sections are required for all projects. The project applicant shall consult with the Town Traffic Engineer to determine the required sections.

1. Introductory Items
• Front Cover/Title Page
• Table of Contents, List of Figures, and List of Tables • Executive Summary

2. Introduction
• Project description
• Project sponsor/contact info
• Type and size of development
• Site plan (include proposed driveways, roadways, traffic control, parking facilities, emergency vehicle access, and internal circulation for vehicles, bicyclists, and pedestrians)
• Location map (include major streets, study intersections, and neighboring zoning and land uses)
• Scope of transportation analysis

3. Current Conditions
• Description of existing street system within project site and surrounding area • Location and routes of nearest public transit system serving the project • Location and routes of nearest pedestrian and bicycle facilities serving the project • Vehicle Miles Traveled Assessment
o Description of baseline VMT estimates (may include site and regional VMT estimates)
• Intersection Analysis for Site Access and Circulation Evaluation and CMP Evaluation o Figure of study intersections with peak hour turning movement counts, lane geometries, and traffic control

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o Map of study area showing average daily traffic (ADT) of study roadways o Table of existing peak hour average vehicle delay and level of service (LOS)

4. Project Trip Generation
• Table of project generated trip estimate
• Figure/map of trip distribution (in percent)

5. Project Site Access and Circulation Evaluation
• Summary of a detailed site review for all modes of travel • Mobility deficiency analysis and summary to vehicle, transit, bicycle, and pedestrian facilities (under Project Conditions and Cumulative Conditions) • Summary of transportation improvements
CEQA Transportation Analysis Report Section

6. Vehicle Miles Traveled Assessment
• Summary of project generated VMT under Baseline Conditions • Summary of project’s effect on VMT under Future Year Cumulative Conditions • Identification of significant impacts
• Discussion of mitigation measures
• Evaluation of impacts of mitigation measures

7. Other CEQA Requirements
• Summary of conflicts with a plan, ordinance, or policy addressing the circulation system, including transit, roadways, bicycle lanes, and pedestrian paths. Present mitigation measures, as needed.
• Evaluation of hazards due to a geometric design feature (e.g., sharp curves or dangerous intersections) or incompatible uses (e.g., farm equipment). Present mitigation measures, as needed.
• Emergency access evaluation. Present mitigation measures, as needed.

Local Transportation Analysis Report Section

8. Existing with Project Conditions

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Attachment 1 -Transportation Analysis Guidelines
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• Maps of study area with applicable peak hour turning movements (Project Only and Existing with Project Conditions)
• Table of Existing Conditions and Existing with Project Conditions intersection peak hour average vehicle delay and LOS (or other multimodal performance measure)
• Traffic signal and other warrants
• Changes/Deficiencies to bike, pedestrian, and transit networks • Findings of project deficiencies
• Improvementsfor project deficiencies (include a map showing physical improvements)
• Scheduling and implementation responsibility of improvements • Deficiencies of proposed improvements

9. Background Conditions
• Table of trip generation for approved project(s)
• Figure and/or table of approved projects trip distribution (in percent) • Map of study area with applicable peak hour turning
movements (Background Conditions)
• Table of intersection peak hour average vehicle delay and LOS (or other multimodal performance measure) (including queue
lengths, etc)
• Changes/deficiencies to bike, pedestrian, and transit networks • Traffic signal and other warrants

10. Background with Project Conditions
• Similar content to Existing with Project Conditions

11. Cumulative Conditions and Cumulative with Project Conditions • Map of study area with Cumulative Conditions peak hour turning movements
• Map of study area with Cumulative with Project Conditions peak hour turning movements
• Table of Cumulative Conditions and Cumulative with Project Conditions intersection peak hour average vehicle delay and LOS (or other multimodal performance measure)
• Changes/Deficiencies to bike, pedestrian, and transit networks • Traffic signal and other warrants
• Findings of project deficiencies
• Improvementsfor project deficiencies (include a map showing physical improvements)
• Scheduling and implementation responsibility of improvements • Deficiencies of proposed improvements

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Additional Sections for Transportation Analysis Report

12. Construction Deficiencies
• Trips due to construction workers
• Truck trips and truck access routes

13. Phasing Deficiencies (For Large Projects Only)

14. Appendices
• List of references
• List of authors
• Pedestrian, bicycle, and vehicle counts
• Technical calculations for all analyses

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ITEM NO. 14.

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Attachment 2 -Project List
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EXHIBIT A to ATTACHMENT 1
Attachment 2 - Transportation Mitigation Improvements Project List ID

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EXHIBIT A to ATTACHMENT 1
Attachment 3 - VMT REDUCTION STRATEGIES
For projects that would generate Vehicle Miles Traveled (VMT), one or more VMT reduction strategies shall be required to reduce VMT of the project. Examples of VMT reduction strategies are provided below. The VMT reduction strategies are organized by their relative scale for implementation (i.e., individual site level, Town-wide level, and regional level).

INDIVIDUAL SITE LEVEL
 Encourage Telecommuting and Alternative Work Schedules: This strategy relies on effective internet access and speeds to individual project sites/buildings to provide the opportunity for telecommuting. This strategy would reduce commute VMT but also result in a change in VMTfor other travel purposes; thus, this strategy should consider the net change in the Town’s project-generated VMT.
 Provide Ride-Sharing Programs: This strategy focuses on encouraging carpooling and vanpooling by project site/building tenants.
 Implement Car-Sharing Program: This strategy reduces the need to own a vehicle or reducesthe number of vehicles owned by a household by making it convenient to access a shared vehicle for those trips where vehicle use is essential. Examples include programs like ZipCar,Car2Go, and Gig.
 Provide Employer-Sponsored Vanpool/Shuttle: This strategy relies on employers purchasing orleasing vans or shuttles, and often subsidizing the cost of at least program administration, if notmore. Vanpools typically service employee’s commute to work, while shuttles service nearby transit stations and surrounding commercial centers.

Scheduling and rider charges, if any, are within the employer’s purview. A supplemental strategy may include facilitating or enhancing the service by improving the shuttle stops and biking/walking paths to the stops.

TOWN-WIDE LEVEL
 Provide Bicycle and Pedestrian Network Improvements: This strategy focuses on creating a comprehensive bicycle and pedestrian network within the project and connecting to nearby destinations. Projects in Los Gatos tend to be smaller so the emphasis of this strategy would likely be the construction of network improvements that connect the project site directly to nearby destinations. Alternatively, implementation could occur through an impact fee programor benefit/assessment district based on regional or local plans such as the Bicycle and Pedestrian Master Plan.  Provide Local Transit or Microtransit Solutions: This strategy focuses on providing transit solutions that serve the local circulation needs and connections to key regional destinations. The service would connect to transit hubs, schools, commercial centers, and residential areas to improve transit connectivity and address the “first/last mile”

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problems. The service may be in the form of a local shuttle, microtransit service using dynamic routing and scheduling, fare subsidies to private transportation network companies (TNCs) or taxi companies, or other service delivery methods. The service may be open to all or target a special population, such as seniors, disabled or students. The implementation of this strategy may require regional or private partnership.  Provide Transit Signal Priority: This strategy would upgrade the Town’s traffic signals along transit corridors to provide transit signal priority to improve transit bus travel time.
 Improve Biking and Walking Paths to Bus Stops and Transit Amenities: This strategy improves the biking and walking paths to bus stops, enhances amenities at bus stops such as shelters, benches, and ADA accessible loading areas.  Provide Traffic Calming Measures: This strategy combines the California Air Pollution Control Officers Association (CAPCOA) research focused on traffic calming with new research on providing a low-stress bicycle network. Traffic calming creates networks with low vehicle speeds and volumes that are more conducive to walking and bicycling.

Building a low-stress bicycle network produces a similar outcome. One potential change in this strategy over time is that ebikes (and e-scooters) could extend the effective range of travel on the bicycle network,which could enhance the effectiveness of this strategy.
 Limit Parking Supply: When combined with companion TDM measures, reduced parking supplydiscourages driving by limiting easy and convenient parking options.

Implementation of this strategy may require reducing (or removing) minimum parking requirements and allowing developers to use shared parking strategies.  Unbundle Parking Costs from Property Cost: Unbundling separates parking costs from propertycost, for instance by not including a parking space in a residential unit’s rent, or by requiring employers to lease each parking space separately from the building owner.

This strategy ensures that the user understands that the cost of driving includes parking and can encourage people to use an alternative mode to save money.  Implement Market Price Public Parking (On-Street): This strategy focuses on implementing a pricing strategy for parking by pricing all on-street parking in central business districts, employment centers, and retail centers. Priced parking would encourage “park once” behaviorand may also result in area-wide mode shifts.

REGIONAL LEVEL
 Increase Density: This strategy focuses on increasing density of land uses, where allowed by the General Plan and/or Zoning Ordinance, to reduce distances people travel and provide more travel mode options. This strategy also provides a foundation for many other strategies. For example, densification increases transit ridership, which justifies enhanced transit service.
 Increase Diversity of Urban and Suburban Developments: This strategy focuses on

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inclusion of mixed uses within projects or in consideration of the surrounding area to minimize vehicle travelin terms of both the number of trips and the length of those trips.  Increase Transit Accessibility: This strategy focuses on encouraging the use of transit by locating a project with high density near transit. A project with a residential/commercial center designed around a bus station is referred to as a transit-oriented development (TOD).
 Integrate Affordable and Below Market Rate Housing: This strategy provides greater opportunities for lower income families to live closer to job centers since income effectsprobability that a commute will take transit or walk to work.  Increase Transit Service Frequency/Speed: This strategy focuses on improving transit service convenience and travel time competitiveness with driving. Given existing land use density in LosGatos, this strategy may be limited to traditional commuter transit where trips can be pooled at the start and end locations, or it may require new forms of demand-responsive transit service. Note that implementation of this strategy would require regional or local agency implementation, substantial changes to current transit practices, and would not likely be applicable for individual development projects.  Implement Area or Cordon Pricing: This strategy focuses on implementing a cordon (i.e., boundary) pricing scheme, where a cordon is set around a specific area to charge a toll to enterthe area by vehicle. The cordon location is usually the boundary of an area with limited points of access. The cordon toll may be constant, applied during peak periods, or be variable, with higher prices during congestion peak periods. The toll can also be based on a fixed schedule or be dynamic, responding to real-time congestion levels. Note that implementation of this strategy requires alternative modes of travel that are available and reliable, such as high-qualitytransit infrastructure.

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Los Gatos City CouncilOctober 7, 2025

Los Gatos City Council
October 7, 2025