Los Gatos City Council
November 4, 2025

* Indicates Revised Item

IMPORTANT NOTICE
This is a hybrid meeting and will be held in-person at the Town Council Chambers at 110 E. Main Street and virtually through Zoom Webinar (log-in information provided below). You may watch the Council meeting without providing public comment on Comcast cable channel 15 or at www.LosGatosCA.gov/TownYouTube. Members of the public may provide public comments for agenda items in-person or virtually by following the instructions listed at the end of the agenda.

To watch and participate via Zoom, please go to:
https://losgatosca-gov.zoom.us/j/86730363468?pwd=pfKQoh92JnbwOYwFvZqIdSSWpjxYoK.1 Enter Passcode: 577971

CALL MEETING TO ORDER

ROLL CALL

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

1. Approve the Minutes of the October 21, 2025, Joint Town Council and Planning Commission Special Meeting.

RECOMMENDATION: Approve the Minutes of the October 21, 2025, Joint Town Council and Planning Commission Special Meeting.

TOWN OF LOS GATOS
*AMENDED COUNCIL MEETING AGENDA
NOVEMBER 04, 2025
110 EAST MAIN STREET AND TELECONFERENCE

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

2. Approve the Minutes of the October 21, 2025, Town Council Meeting.

RECOMMENDATION: Approve the Minutes of the October 21, 2025, Town Council Meeting.

3. Authorize the Town Manager to Execute a Third Amendment to Brightview Tree Care Services, Inc. Agreement for Services to Reduce Tree Maintenance Services and Compensation Through June 30, 2028
RECOMMENDATION: Authorize the Town Manager to Execute a Third Amendment to the Agreement for Services with Brightview Tree Care Services, Inc. (Attachment 1) to reduce the Fiscal Year 2025-26 amount to $161,115 and the total five-year contract not to exceed an amount to $1,076,115.

4. Authorize the Town Manager to Execute a Notice of Completion for the Shannon Pedestrian and Bikeway Improvement Project (CIP No. 18-813-0218; Federal Project No.

CML-5067(024)) and Authorize Staff to Record the Notice of Completion RECOMMENDATION: Accept the Shannon Pedestrian and Bikeway Improvement Project (CIP No. 18-813-0218, Federal Project No. CML-5067(024)) and authorize the Town Manager to execute a Notice of Completion; and direct staff to record the Notice of Completion.

5. Adopt an Ordinance of the Town Council of the Town of Los Gatos to Repeal and Replace Town Code Chapter 29, Article IX, “Floodplain Management,” In its Entirety, and Adopt the Updated Flood Hazard Maps.

Ordinance Title: An Ordinance of the Town Council of the Town of Los Gatos Amending the Town Code to Repeal Town Code Chapter 29, Article IX, “Floodplain Management,” and Replace it with a New Chapter 29, Article IX, “Floodplain Management,” in its Entirety, Including Adoption of Updated Flood Hazard Maps.

RECOMMENDATION: Adopt an ordinance of the Town Council of the Town of Los Gatos repealing Town Code Chapter 29, Article IX, “Floodplain Management,” in its entirety and replacing it with a new Chapter 29, Article IX, “Floodplain Management,” including the updated Flood Hazard Maps.

6. Approve Modifications to the Town’s General Fund Reserve Policy as Recommended by the Finance Commission
RECOMMENDATION: Approve modifications to the Town’s General Fund Reserve Policy as recommended by the Finance Commission and redlined in Attachment 1.

7. *Item Removed.

8. Authorize the Town Manager to Execute a Second Amendment to the Agreement for Services with OpenGov, Inc., Revising the Scope of Work at No Additional Cost RECOMMENDATION: Authorize the Town Manager to execute a second amendment to the Agreement for Services with OpenGov, Inc. (Attachment 1), revising the Scope of Work at no additional cost.

9. Accept Grant Funding from the Town’s Citizens Option for Public Safety/Supplemental Law Enforcement Services Fund (COPS/SLESF) and Authorize Revenue and Expenditure

Adjustments in the Amount of $11,850 to Reflect a Decrease in FY 2025-26 COPS SLESF Grant Program funding Revenue Received from the City of Monte Sereno RECOMMENDATION: Accept grant funding from the Town’s Citizens Option for Public Safety/Supplemental Law Enforcement Services Fund (COPS/SLESF) and authorize revenue and expenditure budget adjustments in the amount of $11,850 to reflect a decrease in FY 2025-26 COPS SLESF Grant Program funding revenue received from the City of Monte Sereno.

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

10. Adopt a Resolution To Confirm the Town’s Policy in Support of Greenhouse Gas Reduction and Introduce an Ordinance, by Title Only, Repealing Chapter 6, “Building Regulations,” and Chapter 9, “Fire Prevention and Protection,” of the Town of Los Gatos Municipal Code, and Replacing Them with a New Chapter 6, “Building Codes and Regulations,” that Includes the New 2025 California Building, Fire, and Reach Codes as Amended. Amendments Include Updated Fire Safety Requirements in Wildland Urban Interface Areas for New, Renovated, or Repaired Structures, as well as Reach Codes Affecting Air Conditioning Replacement and Electrical Readiness in Renovations/Alterations. Alternatively, introduce an Ordinance without the Reach Code provisions. Town Code Amendment Application A-25-005. Project Location: Town Wide.

Applicant: Town of Los Gatos.

Ordinance Titles: An Ordinance of the Town Council of the Town of Los Gatos Repealing Chapter 6, “Building Regulations,” and Chapter 9, “Fire Prevention and Protection,” and Replacing Them with a New Chapter 6, “Building Codes and Regulations,” that Includes the New 2025 California Building, Fire, and Reach Codes, as Amended; or An Ordinance of the Town Council of the Town of Los Gatos Repealing Chapter 6, “Building Regulations,” and Chapter 9, “Fire Prevention and Protection,” and Replacing Them with a New chapter 6, “Building Codes and Regulations,” that Includes the New 2025 California Building, and Fire Codes as Amended. Amendments Include Updated Fire Safety Requirements in Wildland Urban Interface Areas for New, Renovated, or Repaired Structures.

RECOMMENDATION: Adopt a Resolution to Confirm the Town’s Policy in Support of Greenhouse Gas Reduction (Attachment 1) and Introduce an Ordinance (Attachment 2),

by title only, repealing Chapter 6, Building Regulations, and Chapter 9, Fire Prevention and Protection, of the Town of Los Gatos Municipal Code, and replace them with a new Chapter 6, Building Codes and Regulations, that includes the new 2025 California Building, Fire, and Reach Codes as amended. Alternatively, introduce an Ordinance without the Reach Codes (Attachment 4). Amendments include updated fire safety requirements in Wildland Urban Interface (WUI) areas for new, renovated, or repaired structures, as well as potential Reach Codes affecting air conditioning replacement and electrical readiness in renovations/alterations.

11. Consider a Recommendation by the Planning Commission to Approve Architecture and Site and Zone Change Applications to Demolish the Existing Single-Family Residence, Construct a New Single-Family Residence, Site Improvements Requiring a Grading Permit, and Introduce an Ordinance Effecting a Zone Change from O (Office) to R-1:8 (Single-Family Residential, Minimum Lot Size of 8,000 Square Feet). Located at 14331 Capri Drive. APN 406-32-004. Architecture and Site Application S-24-043 and Zone Change Application Z-23-005. Categorically Exempt Pursuant to CEQA Guidelines Section 15303: New Construction, and Section 15061(b)(3): Common Sense Exemption. Property Owner: Ravi Kiran Vallamdas. Applicant: Gordon K. Wong. Project Planner: Ryan Safty.

Ordinance Title: An Ordinance of the Town Council of the Town of Los Gatos Amending the Zoning from O (Office) to R-1:8 (Single-Family Residential, Minimum Lot Size of 8,000 Square Feet) for Property Located at 14331 Capri Drive.

RECOMMENDATION: Accept the Planning Commission’s recommendation and introduce an Ordinance effecting a Zone Change from O (Office) to R-1:8 (Single-Family Residential, minimum lot size of 8,000 square feet), and adopt a Resolution approving an Architecture and Site application to demolish an existing single-family residence and construct a new single-family residence with site improvements requiring a grading permit on property located at 14331 Capri Drive.

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

12. Authorize the Town Manager to Execute and Renegotiate a 10-Year Agreement with Axon Enterprise, Inc. for the Axon ISLE 10+ Program Including Body-Worn Cameras, Vehicle Fleet Cameras, Tasers, Axon Fusus Integrated Software, Axon Drone First Responder Technology, Axon Standards, and Axon VR Training Simulator for a total amount not to exceed $2,791,568; and authorize revenue and expenditure budget adjustments in the amount of $26,820 to reflect increased donation revenue received from the Police Foundation and the corresponding expenditures associated with the Axon agreement
RECOMMENDATION: Authorize the Town Manager to execute and negotiate a 10-year agreement with Axon Enterprise, Inc. for the Axon Integrated Safety and Law Enforcement (ISLE) 10+ program, encompassing body-worn cameras, fleet cameras, Tasers, real-time crime center integration, drone technology, Axon Standards, and Axon VR training for a total amount not to exceed $2,791,568; and authorize revenue and expenditure budget adjustments in the amount of $26,820 to reflect increased donation revenue received from the Police Foundation and the corresponding expenditures associated with the Axon agreement.

13. Informational Report on E-Bike Safety, Education, Enforcement, and Legislation RECOMMENDATION: Receive the informational report summarizing the Los Gatos-Monte Sereno Police Department’s (LGMSPD) local, regional, and statewide efforts and alignment in addressing electric bicycle (e-bike) safety, including education, enforcement, legislative awareness, and partnership collaboration. No Council action is requested.

COUNCIL / MANAGER MATTERS

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

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

NOTICE REGARDING SUPPLEMENTAL MATERIALS - Materials related to an item on this agenda submitted to the Town Council after initial distribution of the agenda packets are available for public inspection in the Clerk’s Office at Town Hall, 110 E. Main Street, Los Gatos and on the Town’s website at www.losgatosca.gov. Town Council agendas and related materials can be viewed online at https://losgatos-ca.municodemeetings.com/.

HOW TO PARTICIPATE
Members of the public may provide public comments for agenda items in-person or virtually through the Zoom Webinar by following the instructions listed below.

The public is welcome to provide oral comments in real-time during the meeting in three ways:

Zoom Webinar (Online): To participate from a PC, Mac, iPad, iPhone or Android device.

Please use this URL to join: https://losgatoscagov.zoom.us/j/86730363468?pwd=pfKQoh92JnbwOYwFvZqIdSSWpjxYoK.1 Passcode: 577971. You can also type in 867 3036 3468 in the “Join a Meeting” page on the Zoom website at www.zoom.us and use passcode 577971. When the Mayor announces the item for which you wish to speak, click the “raise hand” feature in Zoom.

Telephone: To participate by phone please dial 1 (408) 961-3927 or 1 (855) 758-1310 for US Toll-free and use Meeting ID: 867 3036 3468. When the Mayor announces the item for which you wish to speak, press *9 on your telephone keypad to raise your hand.

In-Person: Please complete a “speaker’s card” located on the back of the chamber benches and submit it to the Town Clerk before the meeting or when the Mayor announces the item for which you wish to speak.

NOTES: Comments will be limited to three (3) minutes or less at the Mayor’s discretion. If you are unable to participate in real-time, you may email to [email protected] the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment).

Deadlines to submit written comments are:
-11:00 a.m. the Thursday before the Council meeting for inclusion in the agenda packet. -11:00 a.m. the Friday and Monday before the Council meeting for inclusion in an addendum. -11:00 a.m. the day of the Council meeting for inclusion in a desk item.

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

TOWN OF LOS GATOS

COUNCIL SPECIAL MEETING MINUTES
MEETING DATE: 11/04/2025
ITEM NO: 1
DRAFT
Minutes of the Joint Special Meeting
Town Council and Planning Commission
Tuesday, October 21, 2025
The Town Council of the Town of Los Gatos conducted a special meeting in person and via teleconference.

MEETING CALLED TO ORDER AT APPROXIMATELY 5:18 P.M.

ROLL CALL

Present: Mayor Matthew Hudes, Vice Mayor Rob Moore, Council Member Mary Badame, Council Member Rob Rennie, Council Member Maria Ristow, Commissioner Rob Stump, Commissioner Steven Raspe, Commissioner Joe Sordi, Commissioner Susan Burnett, Commissioner Jeffrey Barnett, Vice Chair Kendra Burch, Chair Emily Thomas.

Absent: None.

VERBAL COMMUNICATIONS (ONLY ON ITEMS ON THE AGENDA)
Carin Yamamoto
- Inquired about the consultant’s presentation.

Member of the Public
- Commented on various concerns.

PRESENTATION
i. Overview of the California Environmental Quality Act (CEQA).

Gabreille Whelan, Town Attorney, introduced the consultants.

Akoni Danielsen and Shannon George, David J. Powers and Associates, gave a presentation on CEQA, including the following key concepts: discretion, project descriptions, baselines, thresholds, how to address local issues not covered by CEQA, mitigation, levels of environmental review (decision tree, scope of analysis, how to determine what is needed, substantial evidence, initial study versus EIR, and risk management), common exemptions, tiering (guidelines), public review period (public comment), findings, statement of overriding consideration, approvals, role of the Council, and cumulative analysis.

The Town Council and the Planning Commission asked questions and provided comments related to CEQA.

ITEM NO. 1.

PAGE 2 OF 2
SUBJECT: Draft Minutes of the Special Town Council Meeting of October 21, 2025 DATE: October 21, 2025

ADJOURNMENT
The meeting adjourned at approximately 6:55 p.m.

Respectfully Submitted:
___________________________
Jenna De Long, Deputy Town Clerk

ITEM NO. 1.
110 E. Main Street Los Gatos, CA 95030 ● 408-354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/04/2025
ITEM NO: 2
DRAFT
Minutes of the Town Council Meeting
Tuesday, October 21, 2025
The Town Council of the Town of Los Gatos conducted a regular meeting in person and via teleconference.

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

ROLL CALL

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

Absent: None.

PLEDGE OF ALLEGIANCE
Mayor Hudes invited Isabella Burlinson to lead the Pledge of Allegiance. The audience was invited to participate.

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

1. Approve the Minutes of the October 6, 2025, Joint Special Meeting of the Town Council and Finance Commission.

2. Approve the Minutes of the October 7, 2025, Closed Session Town Council Meeting.

3. Approve the Minutes of the October 7, 2025, Town Council Meeting.

4. Approve the Minutes of the October 14, 2025, Closed Session Town Council Meeting.

5. Receive the Monthly Financial and Investment Report for August 2025.

6. Adopt an Ordinance of the Town Council of the Town of Los Gatos Amending Planned Development Ordinance 2025 to Allow Modifications to Building E at 50 University Avenue (Old Town Center) on Property Zoned C-2:LHP:PD. Building E is Located at 31 University Avenue Within the Old Town Center. APN 529-02-044. Planned Development Modification Application PD-25-001. Categorically Exempt Pursuant to CEQA Guidelines Section 15301:

Existing Facilities. Property Owner: SRI Old Town, LLC. Applicant: Rick Nelson, MBH Architects. Project Planner: Erin Walters. Ordinance Title: An Ordinance of the Town Council of the Town of Los Gatos Amending Planned Development Ordinance 2025 to Allow Modifications to Building E at 50 University Avenue (Old Town Center). ORDINANCE 2377 Mayor Hudes opened public comment.

Member of the Public
- Commented on concerns related to items one through four.

Mayor Hudes closed public comment.

ITEM NO. 2.

PAGE 2 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of October 21, 2025 DATE: October 21, 2025
Mayor Hudes made a request to correct item three [the minutes of the October 7, 2025, Town Council Meeting] to reflect that the vote on the motion related to Item 12 [Adopt a Resolution Establishing Standard Operating Provisions for Boards, Commissions, and Committees] was 3-2, with Vice Mayor Moore, Council Member Rennie, and Council Member Ristow voting in favor and Council Member Badame and Mayor Hudes opposed.

MOTION: Motion by Vice Mayor Moore to approve the consent items with the correction stated by the Mayor. Seconded by Council Member Ristow.

VOTE: Motion passed unanimously.

VERBAL COMMUNICATIONS
Carin Yamamoto
- Commented on a presentation given at an earlier meeting.

Member of the Public
- Commented on various concerns.

Joe Enz, Friends of the Los Gatos Creek
- Commented on various topics.

OTHER BUSINESS

7. Authorize the Town Manager to enter into an Agreement with NHA Advisors, LLC (NHA) to deliver Fiscal Condition Analysis, Fiscal Impact Analysis, Asset Liability Management, and Wildfire Risk Mitigation Studies including any optional services as directed by the Town Council, in the not to exceed amount of $250,50; and authorize an Expenditure Budget Adjustment of $250,500 from the available Unassigned fund Balance.

Chris Constantin, Town Manager, presented the staff report and requested the Council approve an alternative motion:

Authorize the Town Manager to negotiate and execute an agreement with NHA Advisors for the full suite of core RFP Services, excluding the optional wildfire study and excluding the two optional services in the first study, in an amount not to exceed $191,000 with flexibility to come back to Council and expand that scope at a future time should it be necessary, and to approve the corresponding $191,000 budget adjustment from the unassigned fund balance.

Mayor Hudes opened public comment.

No one spoke.

Mayor Hudes closed public comment.

ITEM NO. 2.

PAGE 3 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of October 21, 2025 DATE: October 21, 2025
Council asked questions and discussed the item.

MOTION: Motion by Council Member Badame to authorize the Town Manager to enter an agreement with NHA Advisors, LLC, to deliver staff’s alternative recommendation in delivering and executing base costs of study one, study two, along with team management for both studies and study three, for a total not to exceed [$]191,000.

AMENDMENT: Authorize the Town Manager to execute said agreement and to appropriate from the unassigned fund balance $191,000. Seconded by Council Member Ristow.

VOTE: Motion passed unanimously.

8. Receive an update on the Town’s federal funding and consider sunsetting the requirement to receive this report every other month.

Katy Nomura, Assistant Town Manager, presented the staff report.

Mayor Hudes opened public comment.

No one spoke.

Mayor Hudes closed public comment.

Council asked questions, discussed the item, and received the update.

MOTION: Motion by Council Member Ristow to sunset the requirements for bi-monthly updates until or unless a funding hold-up occurs that impacts federal funding being held back. Seconded by Council Member Rennie.

VOTE: Motion passed unanimously.

PUBLIC HEARING

9. Accept the Planning Commission’s recommendation and introduce an ordinance repealing Town Code Chapter 29, Article IX, “Floodplain Management,” in its entirety and replacing it with a new Chapter 29, Article IX, “Floodplain Management,” including the updated Flood Hazard Maps. Ordinance Title: An Ordinance of the Town Council of the Town of Los Gatos Amending the Town Code to Repeal Town Code Chapter 29, Article IX, “Floodplain Management,” and Replace it with a New Chapter 29, Article IX, “Floodplain Management,” in its Entirety, Including Adoption of Updated Flood Hazard Maps.

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

Council discussed the item.

ITEM NO. 2.

PAGE 4 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of October 21, 2025 DATE: October 21, 2025
Mayor Hudes opened public comment.

No one spoke.

Mayor Hudes closed public comment.

MOTION: Motion by Council Member Badame to accept the Planning Commission’s recommendation and introduce an ordinance repealing Town Code Chapter 29, Article IX, “Floodplain Management,” in its entirety and replacing it with a new Chapter 29, Article IX, “Floodplain Management,” including the updated Flood Hazard Maps. Seconded by Council Vice Mayor Moore.

VOTE: Motion passed unanimously.

COUNCIL/TOWN MANAGER REPORTS
Council Matters
- Council Member Badame stated she participated in National School Lunch Week at Blossom Hill Elementary School and attended the Los Gatos-Monte Sereno Police Foundation Recognition Awards Luncheon.
- Council Member Ristow stated she attended the League of California Cities Annual Conference, the Youth Citizen of the Year Awards, the Yavneh Day School Interfaith 2025 Climate Fair, the Los Gatos-Monte Sereno Police Foundation Recognition Awards Luncheon, and National School Lunch Week at Daves Avenue School.
- Vice Mayor Moore stated he attended the League of California Cities Annual Conference, the Youth Park Day and Youth Citizens of the Year Awards, the Los Gatos-Monte Sereno Police Foundation Recognition Awards Luncheon; participated in National School Lunch Week at Louise Van Meter Elementary School; attended Bay Area Municipal Elections Committee (BAYMEC) Progress Never Stops Brunch; met with the Los Gatos High School Principal and one of the Board of Trustees regarding E-Bikes; and attended a Finance Commission meeting.
- Council Member Rennie provided data on home fire safety. - Mayor Hudes stated he attended the League of California Cities Annual Conference; participated in a Finance Commission meeting, a hearing at the Santa Clara County Superior Court on the Town of Los Gatos vs. Arya/Lux, the Los Gatos-Monte Sereno Police Foundation Recognition Awards Luncheon; toured the On Lok facility for older adults; and observed the Diversity, Equity, and Inclusion Commission meeting; participated in National School Lunch Week at Louise Van Meter Elementary School; and attended a ribbon cutting for Arms Cyber Defense.

Town Manager Matters
Chris Constantin, Town Manager
- Announced that the Mediterranean fruit fly quarantine zone now includes parts of Los

ITEM NO. 2.

PAGE 5 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of October 21, 2025 DATE: October 21, 2025
Gatos and urged residents of Los Gatos to refrain from removing or consuming fruits or vegetables outside of their property, and dispose of them in a sealed bag in the garbage bin, not the green waste bin, to help reduce the spread of the fruit fly. - Announced the Town has evaluated the Insurance Joint Powers Authority (JPA) and stated a recommendation will be brought to Council to reduce insurance costs and expand coverage. - Commented on the Town’s consultant firm, Goldfarb and Lipman, providing information on new affordable housing laws at the League of California Cities - City Attorney Session. - Recognized Council Member Ristow for her panel discussion on Council-Manager relations at the League of California Cities Conference.

Closed Session Report
Gabrielle Whelan, Town Attorney
- Stated that the Town Council met in closed session on October 14, 2025, to discuss three topics: one item related to anticipated litigation pursuant to Government Code Section 54956.9, and two items of real property negotiation pursuant to Government Code Section 54956.8, and there is no reportable action on those items. - Commented on the estimated timing for the decision on the Santa Clara County Superior hearing.

ADJOURNMENT
The meeting adjourned at 8:43 p.m.

Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Town Clerk

ITEM NO. 2.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/04/2025
ITEM NO: 3
DATE: November 4, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Third Amendment to Brightview Tree Care Services, Inc. Agreement for Services to Reduce Tree Maintenance Services and Compensation Through June 30, 2028
RECOMMENDATION: Authorize the Town Manager to Execute a Third Amendment to the Agreement for Services with Brightview Tree Care Services, Inc. (Attachment 1) to reduce the Fiscal Year 2025-26 amount to $161,115 and the total five-year contract not to exceed an amount to $1,076,115.

FISCAL IMPACT:

The recommended amendment reduces the Fiscal Year 2025-26 compensation for tree maintenance services within the Parks and Public Works Streets Program (5401) in an amount of $50,000 and increases compensation for tree removal associated with the Shannon Road Repair Project (CIP No. 811-0008) in an amount of $11,115. The net effect reduces the contract amount for FY 2025-26 by $38,885 for a total of $161,115, and a total five-year agreement notto-exceed amount of $1,076,115. Funding for subsequent fiscal years will be subject to future budget approvals.

STRATEGIC PRIORITY:

This action supports the Town’s strategic priorities of fiscal stability and public safety.

BACKGROUND:

A Request for Proposal (RFP) was conducted for town-wide tree maintenance services, and on May 8, 2023, four proposals were received. Brightview Tree Care Services, Inc. presented as the

ITEM NO. 3.

PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute a Third Amendment to Brightview Tree Care Services, inc. Agreement for Services.

DATE: October 17, 2025
lowest responsible bidder, and on June 20, 2023, the Town Council authorized the execution of a five-year Agreement for Services with Brightview Tree Care Services, Inc. for Townwide tree maintenance at $200,000 per year.

On April 16, 2024, the Town Council approved a First Amendment to increase Fiscal Year 2023- 24 compensation by $100,000.

On May 6, 2025, the Town Council approved a Second Amendment to increase Fiscal Year 2024-25 compensation by $15,000.

The proposed Third Amendment reduces tree maintenance services and corresponding compensation in Fiscal Year 2025-26 in response to budget balancing measures.

DISCUSSION:

During the development of the Fiscal Year 2025-26 Operating Budget, the Parks and Public Works department was directed to identify cost-saving measures to assist in balancing the Town’s General Fund. As part of this effort, staff proposed a reduction in the Streets Program (5401) tree maintenance budget. This reduction necessitates a corresponding decrease in contracted tree maintenance services provided through Brightview Tree Care Services, Inc.

The reduced tree maintenance will result in deferral of noncritical tree trimming and maintenance activities. Staff will continue to prioritize work related to public safety and emergency response, including hazardous tree removals, clearance for vehicular and pedestrian travel, and maintenance around key infrastructure. This approach ensures that essential services are maintained while aligning expenditures with available funding.

In addition to the reduction in operating budget–funded maintenance, the amendment adds funding for tree work under the Shannon Road Repair Project (CIP No. 811-0008). This work includes the removal of a large hazardous oak tree leaning over Hicks Road, which poses a safety risk to motorists and residents. Since Hicks Road will serve as a detour route during the Shannon Road project, the removal of this tree has become imperative. Removal of vegetation along the proposed detour route was not included in the contract documents for the capital project. Funding for this component is provided through previously appropriated CIP project funds.

With these changes, the total contract amount for Fiscal Year 2025–26 will be $161,115, and the total five-year agreement amount will not exceed $1,076,115. This amendment allows the Town to align service levels with the approved operating budget while supporting implementation of a capital project.

ITEM NO. 3.

PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute a Third Amendment to Brightview Tree Care Services, inc. Agreement for Services.

DATE: October 17, 2025
CONCLUSION:

Authorize the Town Manager to execute a Third Amendment to the Agreement for Services with Brightview Tree Care Services, Inc. to reduce the scope of work and compensation for 2025-26.

ENVIRONMENTAL ASSESSMENT:

This is not a project defined under CEQA, and no further action is required. The removal of the tree along Hicks Road is Categorically Exempt per Section 15301.

Attachments:

1. Third Amendment to Agreement for Services

2. Original Agreement with First Amendment and Second Amendments

ITEM NO. 3.

Third Amendment to Agreement for Services
Brightview Tree Care Services, Inc.

THIRD AMENDMENT TO AGREEMENT FOR SERVICES
This THIRD AMENDMENT TO AGREEMENT FOR SERVICES is dated for identification this 4th day of November 2025 and amends that certain Second Amendment to Agreement for Services dated May 6, 2025, made by and between the Town of Los Gatos, ("Town,") and the Brightview Tree Care Services, Inc. (“Service Provider”) identified as a C Corporation and whose address is P.O. Box 31001-2643, Pasadena, CA 91110-2463.

RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 20, 2023, (“Agreement”), a First Amendment to Agreement for Services on April 16, 2024, and a Second Amendment to Agreement for Services on May 6, 2025.

B. Town desires to amend the Agreement to reduce the compensation for Year 3 Fiscal Year 2025/26.

C. Town desires to add funding for tree work under the Shannon Road Repair Project (CIP No. 811-0008).

AMENDMENT

1. Section 2.6 Compensation is replaced in its entirety to read:

Year 1 Fiscal Year 2023/24 - $300,000
Year 2 Fiscal Year 2024/25 - $215,000
Year 3 Fiscal Year 2025/26 - $161,115
Year 4 Fiscal Year 2026/27- $200,000
Year 5 Fiscal Year 2027/28- $200,000
For a total agreement amount not to exceed $1,076,115
Compensation is subject to Operating Budget Appropriations. Charges as defined in Exhibit A may be increased annually based on the San Francisco-Oakland-San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

If the CPI indicates a downward adjustment, compensation will remain at the base amount. Payment shall be based upon Town approval of each task.

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

ATTACHMENT 1 Page 17
ITEM NO. 3.

Third Amendment to Agreement for Services
Brightview Tree Care Services, Inc.

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

Town of Los Gatos: Service Provider by:

Chris Constantin, Town Manager Brandon Steene, Vice President/GM Department Approval:

Nicolle Burnham
Director of Parks and Public Works
Approved as to Form:

Gabrielle Whelan, Town Attorney

ITEM NO. 3.

Second Amendment to Agreement for Services ATTACHMENT 2 Brightview Tree Care Services, Inc.

SECOND AMENDMENT TO AGREEMENT FOR SERVICES
This SECOND AMENDMENT TO AGREEMENT FOR SERVICES is dated for identification this 6th day of May 2025 and amends that certain First Amendment to Agreement for Services dated April 16, 2024, made by and between the Town of Los Gatos, ("Town,") and the Brightview Tree Care Services, Inc. (“Service Provider”) identified as a C Corporation and whose address is P.O.

Box 31001-2643, Pasadena, CA 91110-2463.

RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 20, 2023, (“Agreement”), a First Amendment to Agreement for Services on April 16, 2024, copies of which is attached hereto and incorporated by reference as Exhibit A to this Amendment.

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

AMENDMENT

1. Section 2.6 Compensation is replaced in its entirety to read:

Year 1 Fiscal Year 2023/24 - $200,000
Year 2 Fiscal Year 2024/25 - $200,000; Modified via First Amendment to $300,000 Year 3 Fiscal Year 2025/26 - $200,000; Modified via Second Amendment to $215,000 Year 4 Fiscal Year 2025/26 - $200,000
Year 5 Fiscal Year 2026/27- $200,000
For a total agreement amount not to exceed $1,115,000, inclusive of all costs.

Compensation is subject to Operating Budget Appropriations. Charges as defined in Exhibit A may be increased annually based on the San Francisco-Oakland-San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year.

If the CPI indicates a downward adjustment, compensation would remain at the base amount. Payment shall be based upon Town approval of each task.

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

ITEM NO. 3.

Second Amendment to Agreement for Services ATTACHMENT 2 Brightview Tree Care Services, Inc.

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

Town of Los Gatos: Approved as to Consent:
_______________________________ ______________________________ Chris Constantin, Town Manager Fred Freund, Division President Department Approval:
_______________________________________
Nicolle Burnham
Director of Parks and Public Works
Approved as to Form: Attest:
______________________________ ______________________________ Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk

ITEM NO. 3.

First Amendment to Agreement for Services
Brightview Tree Care Services, Inc.

FIRST AMENDMENT TO AGREEMENT FOR SERVICES
This FIRST AMENDMENT TO AGREEMENT FOR SERVICES is dated for identification this 16th day of April 2024 and amends that certain Agreement for Services dated June 20, 2023, made by and between the Town of Los Gatos, ("Town,") and the Brightview Tree Care Services, Inc. (“Service Provider”) identified as a C Corporation and whose address is P.O. Box 31001-2643, Pasadena, CA 91110-2463

RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 20, 2023, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Exhibit A to this Amendment.

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

AMENDMENT

1. Section 2.6 Compensation is amended to read as follows:

Additional compensation for Service Providers professional services shall be increased for Fiscal Year 2023/24 in an amount of $100,000 for a total annual amount not to exceed $300,000 and a total agreement amount not to exceed $ 1,100,000.

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

DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

First Amendment to Agreement for Services
Brightview Tree Care Services, Inc.

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

Town of Los Gatos: Approved as to Consent:
_______________________________ ______________________________ Laurel Prevetti, Town Manager Brandon Steene
Vice President/General Manager
Department Approval:
_______________________________________
Nicolle Burnham
Director of Parks and Public Works
Approved as to Form: Attest:
______________________________ ______________________________ Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 4/30/2024
4/30/2024
5/2/2024
5/3/2024
5/3/2024
ATTACHMENT 2

ITEM NO. 3.

Brightview Tree Care Services, Inc.

Agreement for Services

AGREEMENT FOR SERVICES
THIS AGREEMENT is dated for identification this 20th day of June 2023 and is made by and between TOWN OF LOS GATOS, a California municipal corporation, (“Town”), and Brightview Tree Care Services, Inc. (“Service Provider”), identified as a C Corporation and whose address is P.O. Box 31001-2643, Pasadena, CA 91110-2463. This Agreement is made with reference to the following facts.

I. RECITALS

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

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

1.3 Town desires to engage Service Provider to provide tree trimming maintenance services.

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

II. AGREEMENT

2.1 Scope of Services. Service Provider shall provide services as described in that certain Proposal sent to the Town on May 8, 2023, which is hereby incorporated by reference and attached as Exhibit A.

2.2 Term and Time of Performance. The effective date of this Agreement shall begin July 1, 2023 and will continue through June 30, 2028 subject to appropriation of funds, notwithstanding any other provision in this agreement.

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

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

DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

Brightview Tree Care Services, Inc.

Agreement for Services

2.5 Information/Report Handling. All documents furnished to Service Provider by the Town and all reports and supportive data prepared by the Service Provider under this Agreement are the Town’s property and shall be delivered to the Town upon the completion of services or at the Town's written request. All reports, information, data, and exhibits prepared or assembled by Service Provider in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Service Provider shall not make any of these documents or information available to any individual or organization not employed by the Service Provider or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Service Provider pursuant to this Agreement are for the purpose of evaluating a defined project, and Town's use of the information contained in the reports prepared by the Service Provider in connection with other projects shall be solely at Town's risk, unless Service Provider expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Service Provider which is and has been confirmed in writing by Service Provider to be a trade secret of Service Provider.

2.6 Compensation: Base compensation for services shall not exceed $200,000 in Fiscal Year 2023/24, and one million dollars over the five year agreement period. Compensation will be subject to Operating Budget Appropriations. Charges as defined in Exhibit A may be increased annually based on the San Francisco-Oakland-San Jose Metropolitan Area Consumer Price Index for All Urban Consumers, all items (CPI). The adjustment shall be based upon the CPI published on December 31 of the preceding year. If the CPI indicates a downward adjustment, compensation would remain at the base amount. Payment shall be based upon Town approval of each task.

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

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

Invoices:

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

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

DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

Brightview Tree Care Services, Inc.

Agreement for Services

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

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

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

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

DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

Brightview Tree Care Services, Inc.

Agreement for Services
III. INSURANCE AND INDEMNIFICATION

3.1 Minimum Scope of Insurance:
i. Service Provider agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/her and his/her firm to an amount not less than: two million dollars ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage.
ii. Service Provider agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/her and his/her staff to an amount not less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage. iii. Service Provider shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Service Provider agrees that all certificates and endorsements are to be received and approved by the Town before work commences.

General Liability:
i. The Town, its elected and appointed officials, employees, and agents are to be covered as insured as respects: liability arising out of activities performed by or on behalf of the Service Provider; products and completed operations of Service Provider, premises owned or used by the Service Provider. ii. The Service Provider's insurance coverage shall be primary insurance as respects the Town, its elected and appointed officials, employees, and agents. Any insurance or self-insurances maintained by the Town, its officers, officials, employees or volunteers shall be excess of the Service Provider's insurance and shall not contribute with it.
iii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers.
iv. The Service Provider's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability.

3.2 All Coverages. Each insurance policy required in this item shall be endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

Brightview Tree Care Services, Inc.

Agreement for Services
been given to the Town. Current certification of such insurance shall be kept on file at all times during the term of this agreement with the Town Clerk.

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

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

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

IV. GENERAL TERMS

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

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

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

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

4.4 Prevailing Wages. This project is subject to the requirements of Section 1720 et seq. of the California Labor Code requiring the payment of prevailing wages, the training of apprentices and compliance with other applicable requirements. Contractors and all subcontractors who perform work on the project are required to comply with these requirements. Prevailing wages apply to all projects over $1,000 which are defined as a “public work” by the State of California. This includes: construction, demolition, DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

Brightview Tree Care Services, Inc.

Agreement for Services
repair, alteration, maintenance and the installation of photovoltaic systems under a Power Purchase Agreement when certain conditions are met under Labor Code Section 1720.6. This include service and warranty work on public buildings and structures.

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

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

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

4.4.4 As a condition to receiving progress payments, final payment and payment of retention on any and all projects on which the payment of prevailing wages is required, the contractor agrees to present to the TOWN, along with its request for payment, all applicable and necessary certified payrolls (for itself and all applicable subcontractors) for the time period covering such payment request.

The term “certified payroll” shall include all required documentation to comply with the mandates set forth in Labor Code Section 1720 et seq, as well as any additional documentation requested by the Agency or its designee including, but not limited to: certified payroll, fringe benefit statements and backup documentation such as monthly benefit statements, employee timecards, copies of wage statements and cancelled checks, proof of training contributions (CAC2 if applicable), and apprenticeship forms such as DAS-140 and DAS-142.

4.4.5 In addition to submitting the certified payrolls and related documentation to the TOWN, the contractor and all subcontractors shall be required to submit certified payroll and related documents electronically to the California Department of Industrial Relations. Failure to submit payrolls to the DIR when mandated by the project parameters shall also result in the withholding of progress, retention and final payment.

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

DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

Brightview Tree Care Services, Inc.

Agreement for Services

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

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

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

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

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

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

Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
Brightview Tree Services, Inc.

P.O. Box 31001-2643
Pasadena, CA 91110-2463
or personally delivered to Service Provider to such address or such other address as Service Provider designates in writing to Town.

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

4.9 Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Service Provider. No terms, DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336

ITEM NO. 3.

Brightview Tree Care Services, Inc.

Agreement for Services
conditions, understandings or agreements purporting to modify or vary this Agreement, unless hereafter made in writing and signed by the party to be bound, shall be binding on either party.

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

Town of Los Gatos by:

Laurel Prevetti, Town Manager
Recommended by:

Jim Harbin
Acting Director of Parks and Public Works
Brightview Tree Services, Inc., by:

Fred Freund, Division President
Approved as to Form:
_____________________________________
Gabrielle Whelan, Town Attorney
Attest:
______________________________________
Wendy Wood, CMC, Town Clerk
DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

DocuSign Envelope ID: 099CDE20-1825-4962-92F1-B180572EF7AB DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

DocuSign Envelope ID: D21FD9B4-A7DD-49C9-88CC-B6595991F336 ATTACHMENT 2

ITEM NO. 3.

PREPARED BY: Saurabh Nijhawan
Senior Civil Engineer
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/04/2025
ITEM NO: 4
DATE: November 4, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Notice of Completion for the Shannon Pedestrian and Bikeway Improvement Project (CIP No. 18-813- 0218; Federal Project No. CML-5067(024)) and Authorize Staff to Record the Notice of Completion
RECOMMENDATION: Accept the Shannon Pedestrian and Bikeway Improvement Project (CIP No. 18-813-0218, Federal Project No. CML-5067(024)) and authorize the Town Manager to execute a Notice of Completion; and direct staff to record the Notice of Completion.

FISCAL IMPACT:

There are no fiscal impacts associated with the recommended actions. This report is meant to close out the contract with Sposeto Engineering Inc. associated with Shannon Pedestrian and Bikeway Improvement Project work.

STRATEGIC PRIORITY:

This project supports the Core Goal of Quality Public Infrastructure. Implement transportation demand management and traffic calming efforts to mitigate traffic congestion where possible, while ensuring safety for all users and making bicycle and pedestrian improvements.

BACKGROUND:

The Shannon Road Pedestrian and Bikeway Improvements Project began July 1, 2020, and ended September 4, 2025.

ITEM NO. 4.

PAGE 2 OF 4
SUBJECT: Actions Related to the Shannon Pedestrian and Bikeway Improvement Project (CIP No. 18-813-0218), Completed by Sposeto Engineering, Inc.

DATE: November 4, 2025
The project provides pedestrian and bicycle safety improvements on Shannon Road between Los Gatos Boulevard and Cherry Blossom Lane. This segment of Shannon Road is a two-lane neighborhood collector street with high volumes of bicycle and pedestrian traffic when schools are in session. The street is a popular route for students attending Blossom Hill Elementary, Louise Van Meter Elementary, and Raymond J. Fisher Middle Schools. Prior to the project construction, there were intermittent sections of sidewalk on both sides of the roadway. Onstreet parking was allowed on Shannon Road except for the hours between 7 a.m. and 6 p.m. on weekdays.

Pursuant to this project, the Town applied for, and received, a $940,100 Vehicle Emissions Reductions Based at Schools (VERBS) federal grant from the Santa Clara Valley Transportation Authority (VTA). In addition, the Town applied for and received a Transportation Fund for Clean Air Grant of $174,250 for this project. The goal of this project is to install a new curb, gutter, sidewalk, buffered Class II bike lanes, and ADA curb ramps on Shannon Road within project limits to improve a public street that serves a broad community.

On May 3, 2024, staff began advertising the project, and bids were opened on May 29, 2024.

The town received bid proposals from three bidders. Sposeto Engineering was the lowest responsive bidder.

On June 18, 2024, the Town Council authorized the Town Manager to execute a construction contract with Sposeto Engineering Inc. in the amount of $2,115,931, with a ten percent ($211,593) contingency of the contract award amount.

On May 20, 2025, the Town Council authorized an increase in expenditure budget in the amount of $88,202 and authorized the Town Manager to execute an additional 2% contingency, for a total contingency of twelve percent (12%, $253,912).

DISCUSSION:

Project construction commenced on September 3, 2024, and was completed September 4, 2025. The work has been completed to the satisfaction of the Town Engineer as noted in Attachment 2.

The total cost associated with Sposeto’s contract was $2,317,371. There were twelve change orders associated with this project, which utilized 9.5% of the approved contingency ($201,441).

The additional 2% contingency authorized by the Town Council on May 20, 2025, was not utilized during construction. Construction was successfully completed within the originally approved 10% contingency.

ITEM NO. 4.

PAGE 3 OF 4
SUBJECT: Actions Related to the Shannon Pedestrian and Bikeway Improvement Project (CIP No. 18-813-0218), Completed by Sposeto Engineering, Inc.

DATE: November 4, 2025
Staff recommends that the Town Council accept the construction of the project and authorize the staff to record the Notice of Completion (Attachment 1).

CONCLUSION:

This action formally accepts the contractor’s work and affirms that it meets the Town’s standards and requirements. The completion of the required work finalizes all contractual obligations, allowing for the release of retention.

COORDINATION:

This report was coordinated with the Finance Department.

ENVIRONMENTAL ASSESSMENT:

This is a project as defined under CEQA and is Categorically Exempt (Section 15301(c)). A Notice of Exemption was filed.

Budget
Existing Appropriations
GFAR $ 740,296
Traffic Mitigation Fund $ 221,582
Storm Basin 1 $ 647,717
Utility Underground $ 71,201
Grant (TFCA) $ 174,250
Grant (OBAG) $ 940,100
New Project Total $2,795,146
Expenditures
Construction Contract - Sposeto Engineering Inc $ 2,317,371 Construction Support Agreement - Activewayz Engineering $ 270,004 Construction Support Agreement - BSK Engineering $ 18,393 Construction Support Agreement - Zoon Engineering $ 4,938 Staffing Costs $ 22,592
Other Project Costs $ 72,871
Total Expenditures to Date $ 2,706,169
Project Balance After Recommended Actions $ 88,977
Shannon Road Pedestrian and Bikeway Improvements
CIP No. 813-0218

ITEM NO. 4.

PAGE 4 OF 4
SUBJECT: Actions Related to the Shannon Pedestrian and Bikeway Improvement Project (CIP No. 18-813-0218), Completed by Sposeto Engineering, Inc.

DATE: November 4, 2025
Attachments:

1. Notice of Completion

2. Verification of Work

ITEM NO. 4.

Shannon Road Pedestrian and Bikeway
Improvement Project 2025 Form NOTICE OF COMPLETION
Project Number 18-813-0218 Page 1
ATTACHMENT 1
Recording Requested By:

Town of Los Gatos
When Recorded Mail To:

Town Clerk
Town of Los Gatos
110 E Main St
Los Gatos, CA 95030

EXEMPT FROM RECORDING FEES PER
GOVERNMENT CODE § 27383
SPACE ABOVE THIS LINE IS FOR RECORDER’S USE

NOTICE OF COMPLETION
Civil Code §§ 9204 and 9208
NOTICE IS HEREBY GIVEN THAT:

1. The undersigned is the agent of the owner of the Project described below.

2. Owner’s full name is: Town of Los Gatos.

3. Town’s address is: 110 E. Main Street., Los Gatos, CA 95030.

4. The nature of Town’s interest in the Project is:

X Fee Ownership __ Lessee __ Other:_____________

5. Construction work on the Project performed on Town’s behalf is generally described as follows:

Furnishing all labor, materials, tools, equipment, and services required for completion of the Shannon Road Pedestrian and Bikeway Improvement Project, located in the Town of Los Gatos, County of Santa Clara, State of California.

6. The name of the original Contractor for the Project is: Sposeto Engineering, Inc. located at 4558 Contractors Pl, Livermore, CA 94551.

7. The Project was accepted as complete on: September 4, 2025.

8. The Project is located at: Various Locations in the Town of Los Gatos.

Verification: In signing this document, I, the undersigned, declare under penalty of perjury under the laws of the State of California that I have read this notice, and I know and understand the contents of this notice, and that the facts stated in this notice are true and correct. __________________________ ________________________________ Date and Place Signature
________________________________
Chris Constantin, Town Manager

EXEMPT FROM NOTARY ACKNOWLEDGMENT REQUIREMENTS PER
GOVERNMENT CODE § 27287 AND CIVIL CODE § 9208

ITEM NO. 4.

TOWN OF LOS GATOS

PARKS AND PUBLIC WORKS COMMENTS
Parks and Public Works Department • Engineering Division 41 Miles Ave, Los Gatos, CA 95030 • 408.399.5771 • www.losgatosca.gov ATTACHMENT 2 To: Chris Constantin
From: Nicolle Burnham
Date: October 17, 2025
Subject: Notice of Acceptance
Acceptance of Work for the Shannon Road Pedestrian and Bikeway Improvement Project (CIP No. 18- 813-0218)
The work performed under this contract was inspected by authorized representatives of the Town, Contractor and Engineer, and determined to be complete. The Town Engineer acknowledges the completion of this project and requests the Town Manger to sign the Certificate of Acceptance form.

Date of Final Inspection: 09/04/2025
Project Participants: Kevin Selfridge, Saurabh Nijhawan, Gary Heap (Town of Los Gatos) John Sposeto (Sposeto Engineering Inc.)

1. All construction and punch list items have been completed? Yes

2. All change orders have been executed? Yes

3. Claims if any have been resolved? N/A
REVIEWED AND APPROVED BY:

SENIOR CIVIL ENGINEER
DATE:

DATE:

DATE:

TOWN ENGINEER

DIRECTOR OF PUBLIC WORKS
10-17-25
10/21/2025
10/24/25

ITEM NO. 4.

TOWN OF LOS GATOS

PARKS AND PUBLIC WORKS COMMENTS
Parks and Public Works Department • Engineering Division 41 Miles Ave, Los Gatos, CA 95030 • 408.399.5771 • www.losgatosca.gov Page 40 ITEM NO. 4.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/04/2025
ITEM NO: 5
DATE: November 4, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Adopt an Ordinance of the Town Council of the Town of Los Gatos to Repeal and Replace Town Code Chapter 29, Article IX, “Floodplain Management,” In its Entirety, and Adopt the Updated Flood Hazard Maps.

Ordinance Title: An Ordinance of the Town Council of the Town of Los Gatos Amending the Town Code to Repeal Town Code Chapter 29, Article IX, “Floodplain Management,” and Replace it with a New Chapter 29, Article IX, “Floodplain Management,” in its Entirety, Including Adoption of Updated Flood Hazard Maps.

RECOMMENDATION: Adopt an ordinance of the Town Council of the Town of Los Gatos repealing Town Code Chapter 29, Article IX, “Floodplain Management,” in its entirety and replacing it with a new Chapter 29, Article IX, “Floodplain Management,” including the updated Flood Hazard Maps.

FISCAL IMPACT:

There is no fiscal impact associated with the introduction of this ordinance.

STRATEGIC PRIORITY:

This action supports the Strategic Priorities of Public Safety and Community Character.

BACKGROUND:

On October 21, 2025, the Town Council considered and voted unanimously to introduce an Ordinance repealing the existing Floodplain Management Ordinance and replacing it with an updated ordinance.

ITEM NO. 5.

PAGE 2 OF 2
SUBJECT: Adopt an Ordinance to Replace Town Code Section 29, Article IX DATE: November 4, 2025
The proposed language represents a wholesale replacement of the Ordinance language. The new language updates the definitions, references the current effective Flood Insurance Rate Maps (FIRMs) dated May 18, 2009, and outlines specific requirements for permitting structures within the mapped floodplain. This update also acknowledges the role the California Building Code plays in managing development and construction within the floodplain.

CONCLUSION:

Adoption of the ordinance (Attachment 1) would finalize the decision. The Ordinance will take effect 30 days after its adoption.

RECOMMENDATION:

Staff recommends that the Town Council adopt the attached Ordinance effecting the ordinance change (Attachment 1).

COORDINATION:

This report was coordinated with the Community Development Director, Town Manager, and Town Attorney.

ENVIRONMENTAL ASSESSMENT:

This action is exempt pursuant to CEQA, Section 15061(b)(3), because it can be seen with certainty that the draft Ordinance will not significantly affect the physical environment in that the draft Ordinance makes changes to floodplain management land use regulations involving no physical activities at this time. Future projects would be subject to CEQA.

Attachments:

1. Draft Floodplain Ordinance

ITEM NO. 5.
1 DRAFT ORDINANCE

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS AMENDING THE TOWN CODE TO REPEAL CHAPTER 29, ARTICLE IX, “FLOODPLAIN MANAGEMENT,” AND REPLACE IT WITH A NEW CHAPTER 29, ARTICLE IX, “FLOODPLAIN MANAGEMENT,” IN ITS ENTIRETY, INCLUDING ADOPTION OF UPDATED FLOOD HAZARD MAPS.

WHEREAS, the Legislature of the State of California has, in Government Code Sections 65302, 65560, and 65800, conferred upon local governments the authority to adopt regulations designed to promote the public health, safety, and general welfare of its citizenry; and WHEREAS, the Federal Emergency Management Agency has identified special flood hazard areas within the boundaries of the Town of Los Gatos (“Town”) and such areas may be subject to periodic inundation which may result in loss of life and property, health and safety hazards, disruption of commerce and governmental services, extraordinary public expenditures for flood protection and relief, and impairment of the tax base, all of which adversely affect the public health, safety, and general welfare; and
WHEREAS, the Town was accepted for participation in the National Flood Insurance Program on January 17, 1979 and the Los Gatos Town Council desires to continue to meet the requirements of Title 44 Code of Federal Regulations, Sections 59 and 60, necessary for such participation; and
WHEREAS, pursuant to the California Health and Safety Code, Division 13, Part 1.5 and Part 2.5, the Town is required to administer and enforce the California Building Standards Code, and such Building Codes contain certain provisions that apply to the design and construction of buildings and structures in flood hazard areas; and
WHEREAS, on September 24, 2025, the Planning Commission reviewed the proposed replacement of Chapter 29, Article IX, “Floodplain Management,” of the Town Code, and found that the proposed replacement is consistent with the goals and policies of the Town’s General Plan, and recommended adoption of the proposed replacement by the Town Council; and WHEREAS, the amendments are consistent with the General Plan and its Elements; and WHEREAS, the amendments are consistent with Chapter 29, “Zoning Regulations” of the Town Code;
WHEREAS, the Planning Commission has determined that it is in the public interest to adopt the proposed floodplain management regulations that are coordinated with the California Building Standards Code; and
ATTACHMENT 1

ITEM NO. 5.
2 WHEREAS, Adopting this Ordinance is exempt pursuant to CEQA, Section 15061(b)(3), because it can be seen with certainty that the draft Ordinance will not significantly affect the physical environment in that the draft Ordinance makes changes to floodplain management land use regulations involving no physical activities at this time. Future projects would be subject to CEQA.

NOW, THEREFORE, BE IT ORDAINED by the Town Council of the Town of Los Gatos that the following floodplain management regulations are hereby adopted.

SECTION I. RECITALS.

The foregoing whereas clauses are incorporated herein by reference and made a part hereof.

SECTION II.

This Ordinance specifically repeals and replaces the following ordinance(s) and regulation(s):

Chapter 29, Article IX, “Floodplain Regulations,” this Ordinance.

CHAPTER 29, Article IX. FLOODPLAIN MANAGEMENT
DIVISION 1. GENERAL PROVISIONS
Sec. 29.90.015. Title.

This Ordinance, in combination with the flood provisions of California Code of Regulations Title 24, the California Building Standards Code (hereinafter “Building Codes,” consisting of the Part 2 (building), Part 2.5 (residential), Part 10 (existing building), and related codes, shall be known as the Floodplain Management Regulations of the Town of Los Gatos (hereinafter “this Ordinance”).

Sec. 29.90.020. Statutory authority.

The Legislature of the State of California has, in Government Code Sections 65302, 65560, and 65800, conferred upon local governments the authority to adopt regulations designed to promote the public health, safety, and general welfare of its citizenry.

Sec. 29.90.025. Scope.

The provisions of this Ordinance, in combination with the flood provisions of the Building Codes, shall apply to all proposed development entirely or partially in flood hazard areas established in Section 29.90.075 of this Ordinance.

ITEM NO. 5.
3 Sec. 29.90.030. Applicability.

For the purposes of jurisdictional applicability, this Ordinance shall apply in the Town of Los Gatos. This Ordinance shall apply to all applications for development, including building permit applications and subdivision proposals, submitted on or after the effective date of this Ordinance.

DIVISION 2. DEFINITIONS
Sec. 29.90.035. General.

The following words and terms shall, for the purposes of this Ordinance, have the meanings shown herein. Where terms are not defined in this Ordinance and are defined in the Building Code (CCR Title 24 Part 2) and used in the Residential Code (CCR Title 24 Part 2.5), such terms shall have the meanings ascribed to them in those Codes. Where terms are not defined in this Ordinance or the Building Code, such terms shall have ordinarily accepted meanings such as the context implies.

Sec. 29.90.040. Definitions.

Accessory Structure means a structure on the same parcel of property as a principal structure and the use of which is incidental to the use of the principal structure. For floodplain management purposes, the term includes only accessory structures used for parking and storage.

Agricultural Structure means a walled and roofed structure used exclusively for agricultural purposes or uses in connection with the production, harvesting, storage, raising, or drying of agricultural commodities and livestock, including aquatic organisms. Structures that house tools or equipment used in connection with these purposes or uses are also considered to have agricultural purposes or uses.

Alteration of a watercourse means a dam, impoundment, channel relocation, change in channel alignment, channelization, or change in cross-sectional area of the channel or the channel capacity, or any other form of modification which may alter, impede, retard, or change the direction and/or velocity of the riverine flow of water during conditions of the base flood.

ASCE 24 means the standard Flood Resistant Design and Construction, referenced by the Building Code, developed and published by the American Society of Civil Engineers, Reston, VA.

Where cited, ASCE 24 refers to the edition of the standard that is referenced by the Building Code.

Base flood means the flood having a 1-percent chance of being equaled or exceeded in any given year. [Also defined in CCR Title 24 Part 2.]
Base flood elevation means the elevation of the base flood, including wave height,

ITEM NO. 5.
4 relative to the National Geodetic Vertical Datum (NGVD), North American Vertical Datum (NAVD), or other datum specified on the Flood Insurance Rate Map (FIRM). [Also defined in CCR Title 24 Part 2.]
Basement means, for the purpose of floodplain management, the portion of a building having its floor subgrade (below ground level) on all sides. [Also defined in CCR Title 24 Part 2.] Building Code means California Code of Regulations Title 24, the California Building Standards Code, the family of Building Codes specifically adopted by the State of California and composed of:
(1) Part 2, applicable to buildings and structures other than dwellings within the scope of this part.
(2) Part 2.5, applicable to one- and two-family dwellings, townhouses not more than three stories, and accessory structures.
(3) Part 10, applicable to existing buildings (as defined in that code). (4) Other specified codes.

Design flood means the flood associated with the greater of the following two areas:
(1) Area with a flood plain subject to a 1-percent or greater chance of flooding in any year.
(2) Area designated as a flood hazard area on a Town’s flood hazard map, or otherwise legally designated.
[Also defined in CCR Title 24 Part 2.]
Design flood elevation means the elevation of the “design flood,” including wave height, relative to the datum specified on the Town’s legally designated flood hazard map. In areas designated as Zone AO, the design flood elevation shall be the elevation of the highest existing grade of the building’s perimeter plus the depth number (in feet) specified on the flood hazard map. In areas designated as Zone AO where a depth number is not specified on the map, the depth number shall be taken as being equal to 2 feet (610 mm). [Also defined in CCR Title 24 Part 2.]
Development means any manmade change to improved or unimproved real estate, including but not limited to, buildings or other structures, temporary structures, temporary or permanent storage of materials, mining, dredging, filling, grading, paving, excavations, drilling operations, flood control projects, and other land-disturbing activities.

Encroachment means the placement of fill, excavation, buildings, permanent structures or other development into a flood hazard area which may impede or alter the flow capacity of riverine flood hazard areas.

Exceptional hardship means, for the purpose of variances from this Ordinance or the

ITEM NO. 5.
5 Building Code, the exceptional difficulty that would result from a failure to grant a requested variance. Mere economic or financial hardship is not exceptional. Inconvenience, aesthetic considerations, physical handicaps, personal preferences, or the disapproval of one's neighbors do not, as a rule, qualify as exceptional hardships. All of these circumstances can be resolved through other means without granting variances, even when the alternatives are more expensive or require the property owner to build elsewhere or put the parcel to a different use than originally intended.

Existing manufactured home park or subdivision means a manufactured home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including, at a minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) was completed before October 3, 1988.

Expansion to an existing manufactured home park or subdivision means the preparation of additional sites by the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads).

Flood or flooding means a general and temporary condition of partial or complete inundation of normally dry land from:
(1) The overflow of inland or tidal waters.
(2) The unusual and rapid accumulation or runoff of surface waters from any source. (3) Mudslides (i.e., mudflows) which are proximately caused by flooding.

Flood control project means a dam or barrier design and constructed to keep water away from or out of a specified area, including but not limited to levees, floodwalls, and channelization.

Flood damage-resistant materials means any construction material capable of withstanding direct and prolonged contact with floodwaters without sustaining any damage that requires more than cosmetic repair. [Also defined in CCR Title 24 Part 2.] Flood hazard area means the greater of the following two areas:
(1) The area within a floodplain subject to a 1-percent or greater chance of flooding in any year.
(2) The area designated as a flood hazard area on the Town’s flood hazard map, or otherwise legally designated.
[Also defined in CCR Title 24 Part 2.]
Flood Insurance Rate Map (FIRM) means an official map of a Town on which the Federal Emergency Management Agency (FEMA) has delineated both the special flood hazard areas and

ITEM NO. 5.
6 the risk premium zones applicable to the Town. [Also defined in CCR Title 24 Part 2.] Flood Insurance Study (FIS) means the official report provided by the FEMA containing the FIRM, the Flood Boundary and Floodway Map (FBFM), the water surface elevation of the base flood, and supporting technical data. [Also defined in CCR Title 24 Part 2.] Floodplain Administrator means the Town official designated by title to administer and enforce the floodplain management regulations.

Floodway means the channel of the river, creek, or other watercourse and the adjacent land areas that must be reserved in order to discharge the base flood without cumulatively increasing the water surface elevation more than a designated height. [Also defined in CCR Title 24 Part 2.]
Fraud or victimization means, for the purpose of variances from this Ordinance or the Building Code, the intentional use of deceit to deprive another of rights or property, making a victim of the deprived person or the public. As it pertains to buildings granted variances to be constructed below the elevation required by the Building Code, future owners or tenants of such buildings and the Town as a whole may bear the burden of increased risk of damage from floods, increased cost of flood insurance, and increased recovery costs, inconvenience, danger, and suffering.

Functionally dependent use means a use that cannot perform its intended purpose unless it is located or carried out in close proximity to water, including only docking facilities, port facilities necessary for the loading or unloading of cargo or passengers, and shipbuilding or ship repair facilities. The term does not include long-term storage, manufacture, sales, or service facilities.

Highest adjacent grade means the highest natural elevation of the ground surface prior to construction next to the proposed walls or foundation of a structure.

Historic structure means any structure that is:
(1) Listed individually in the National Register of Historic Places (a listing maintained by the Department of Interior) or preliminarily determined by the Secretary of the Interior as meeting the requirements for individual listing on the National Register. (2) Certified or preliminarily determined by the Secretary of the Interior as contributing to the historical significance of a registered historic district or a district preliminarily determined by the Secretary to qualify as a registered historic district. (3) Individually listed on the inventory of historic places maintained by the California Office of Historic Preservation.
(4) Individually listed on a local inventory of historic places in communities with historic preservation programs that have been certified by the California Office of Historic Preservation.

ITEM NO. 5.
7 Letter of Map Change (LOMC) means an official determination issued by FEMA that amends or revises an effective FIRM or FIS. LOMCs include:
(1) Letter of Map Amendment (LOMA): An amendment based on technical data showing that a property was incorrectly included in a designated special flood hazard area. A LOMA amends the current effective FIRM and establishes that a specific property, portion of a property, or structure is not located in a special flood hazard area.
(2) Letter of Map Revision (LOMR): A revision based on technical data that may show changes to flood zones, flood elevations, special flood hazard area boundaries and floodway delineations, and other planimetric features.
(3) Letter of Map Revision Based on Fill (LOMR-F): A determination that a structure or parcel of land has been elevated by fill above the base flood elevation and is, therefore, no longer located within the special flood hazard area. In order to qualify for this determination, the fill must have been permitted and placed in accordance with the Town’s floodplain management regulations.
(4) Conditional Letter of Map Revision (CLOMR): A formal review and comment as to whether a proposed flood protection project or other project complies with the minimum National Flood Insurance Program (NFIP) requirements for such projects with respect to delineation of special flood hazard areas. A CLOMR does not revise the effective FIRM or FIS; upon submission and approval of certified as-built documentation, a LOMR may be issued by FEMA to revise the effective FIRM.

Light-duty truck means, as defined in 40 C.F.R. 86.082-2, any motor vehicle rated at 8,500 pounds Gross Vehicular Weight Rating or less which has a vehicular curb weight of 6,000 pounds or less and which has a basic vehicle frontal area of forty-five (45) square feet or less, which is:
(1) Designed primarily for purposes of transportation of property or is a derivation of such a vehicle.
(2) Designed primarily for transportation of persons and has a capacity of more than twelve (12) persons.
(3) Available with special features enabling off-street or off-highway operation and use.

Lowest floor means the lowest floor of the lowest enclosed area, including basement, but excluding any unfinished or flood-resistant enclosure, usable solely for vehicle parking, building access, or limited storage provided that such enclosure is not built so as to render the structure in violation of the non-elevation requirements of the Building Codes. [Also defined in CCR Title 24 Part 2.]
Manufactured home means a structure that is transportable in one or more sections, built on a permanent chassis, designed for use as a single-family dwelling with or without a

ITEM NO. 5.
8 permanent foundation when connected to the required utilities, and constructed to the Manufactured Home Construction and Safety Standards promulgated by the U.S. Department of Housing and Urban Development. Also see definitions in Health and Safety Code sections18000.(a)(2) and 18001.(a). For the purposes of floodplain management, the term also includes mobile homes and recreational vehicles, park trailers, travel trailers, and similar transportable structures that are placed on a site for 180 consecutive days or longer.

Manufactured home park or subdivision means a parcel (or contiguous parcels) of land divided into two or more manufactured home lots for rent or sale.

Market value means the price at which a property will change hands between a willing buyer and a willing seller, neither party being under compulsion to buy or sell, and both having reasonable knowledge of relevant facts. As used in this Ordinance, the term refers to the market value of buildings and structures, excluding the land and other improvements on the parcel. Market value may be established by one of the following methods: (1) Actual Cash Value (replacement cost depreciated for age and quality of construction); (2) tax assessment value adjusted to approximate market value by a factor provided by the Property Appraiser; or (3) a qualified independent appraiser.

New manufactured home park or subdivision means a manufactured home park or subdivision for which the construction of facilities for servicing the lots on which the manufactured homes are to be affixed (including at a minimum, the installation of utilities, the construction of streets, and either final site grading or the pouring of concrete pads) was completed on or after October 3, 1988.

Nuisance means that which is injurious to safety or health of an entire Town or neighborhood, or any considerable number of persons, or unlawfully obstructs the free passage or use, in the customary manner, of any navigable lake, river, bay, stream, canal, or basin.

Permit for floodplain development means an official document or certificate issued by the Town, or other evidence of approval or concurrence, which authorizes performance of specified development activities that are located in flood hazard areas and that are determined to be compliant with this Ordinance.

Recreational vehicle means a vehicle that is built on a single chassis, 400 square feet (37.16 m2) or less when measured at the largest horizontal projection, designed to be selfpropelled or permanently towable by a light-duty truck, and designed primarily not for use as a permanent dwelling but as temporary living quarters for recreational, camping, travel or seasonal use. A recreational vehicle is ready for highway use when it is on its wheels or jacking system, is attached to the site only by quick disconnect type utilities and security devices and has no permanently attached additions. Also see definitions in Health and Safety Code section 18010.

Riverine means relating to, formed by, or resembling a river (including tributaries),

ITEM NO. 5.
9 stream, brook, etc.

Special flood hazard area (SFHA) means the land area subject to flood hazards and shown on a FIRM or other flood hazard map as Zone A, AE, A1-30, A99, AR, AO, AH, V, VO, VE, or V1-30. [Also defined in CCR Title 24 Part 2.]
Substantial damage means damage of any origin sustained by a structure whereby the cost of restoring the structure to its before-damaged condition would equal or exceed 50 percent of the market value of the structure before the damage occurred. [Also defined in CCR Title 24 Part 2.]
Substantial improvement means any repair, reconstruction, rehabilitation, alteration, addition, or other improvement of a building or structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the improvement or repair is started.

When the structure has sustained substantial damage, any repairs are considered substantial improvement regardless of the actual repair work performed. The term does not, however, include either:
(1) Any project for improvement of a building required to correct existing health, sanitary, or safety code violations identified by the Building Official and that are the minimum necessary to assure safe living conditions.
(2) Any alteration of a historic structure provided that the alteration will not preclude the structure’s continued designation as a historic structure. [Also defined in CCR Title 24 Part 2.]
Utility and Miscellaneous Group U means buildings and structures of an accessory character and miscellaneous structures not classified in any special occupancy, as described in the Building Code.

Variance means a grant of relief from the requirements of this Ordinance which permits construction in a manner otherwise prohibited and where specific enforcement would result in exceptional hardship.

Violation means a development that is not fully compliant with this Ordinance or the flood provisions of the Building Code, as applicable.

Watercourse means a river, creek, stream, channel, or other topographic feature in, on, through, or over which water flows at least periodically.

Sec. 29.90.045. Purposes and objectives.

The purposes and objectives of this Ordinance and the flood load and flood resistant construction requirements of the Building Codes are to promote the public health, safety, and general welfare and to minimize public and private losses due to flood conditions in specific

ITEM NO. 5.
10 flood hazard areas through the establishment of comprehensive regulations for management of flood hazard areas, designed to:
(1) Minimize unnecessary disruption of commerce, access, and public service during times of flooding.
(2) Require the use of appropriate construction practices in order to prevent or minimize future flood damage.
(3) Manage the alteration of natural floodplains, stream channels, and shorelines to minimize the impact of development on the natural and beneficial functions of the floodplain.
(4) Manage filling, grading, dredging, mining, paving, excavation, drilling operations, storage of equipment or materials, and other development which may increase flood damage or erosion potential.
(5) Prevent or regulate the construction of flood barriers which will divert floodwater or increase flood hazards.
(6) Contribute to improved construction techniques in the floodplain. (7) Minimize damage to public and private facilities and utilities. (8) Help maintain a stable tax base by providing for the sound use and development of flood hazard areas.
(9) Minimize the need for rescue and relief efforts associated with flooding. (10) Ensure that property owners, occupants, and potential owners are aware of property located in flood hazard areas.
(11) Minimize the need for future expenditure of public funds for flood control projects and response to and recovery from flood events.
(12) Meet the requirements of the NFIP for Town participation as set forth in Title 44 Code of Federal Regulations, Section 59.22.

Sec. 29.90.050. Coordination with California Building Standards Code.

Pursuant to the requirement established in State statute that the Town of Los Gatos administer and enforce the California Building Standards Code, the Town Council of the Town of Los Gatos hereby acknowledges that the Building Codes contain certain provisions that apply to the design and construction of buildings and structures in flood hazard areas. Therefore, this Ordinance is intended to be administered and enforced in conjunction with the Building Codes.

Sec. 29.90.055. Disclaimer of liability.

This Ordinance is not intended to create liability on the part of Town of Los Gatos, any officer or employee thereof, the State of California, or the FEMA, for any flood damage that results from reliance on this Ordinance or any administrative decision lawfully made hereunder. The Floodplain Administrator and any employee charged with the enforcement of this Ordinance, while acting for the Town in good faith and without malice in the discharge of the duties required by this Ordinance or other pertinent law or ordinance, shall not thereby be rendered liable personally and is hereby relieved from personal liability for any damage occurring to

ITEM NO. 5.
11 persons or property as a result of any act or by reason of an act or omission in the discharge of official duties. Any suit instituted against an officer or employee because of an act performed by that officer or employee in the lawful discharge of duties and under the provisions of this Ordinance shall be defended by a legal representative of the Town until the final termination of the proceedings. The Floodplain Administrator and any subordinate shall not be liable for cost in any action, suit, or proceeding that is instituted in pursuance of the provisions of this Ordinance.

Sec. 29.90.060. Other laws.

The provisions of this Ordinance shall not be deemed to nullify any provisions of local, state, or federal law.

Sec. 29.90.065. Abrogation and greater restrictions.

This Ordinance supersedes any ordinance in effect in flood hazard areas. However, this Ordinance is not intended to repeal, abrogate, or impair any existing ordinances including land development regulations, subdivision regulations, zoning ordinances, stormwater management regulations, or Building Codes, nor any existing easements, covenants, or deed restrictions. In the event of an overlap or conflict between this Ordinance and any other ordinance, code, regulation, easement, covenant, or deed restriction, the more restrictive shall govern.

DIVISION 3. APPLICABILITY
Sec. 29.90.070. General applicability.

This Ordinance, in conjunction with the Building Codes, provides minimum requirements for development located in flood hazard areas, including the subdivision of land; filling, grading, and other site improvements; installation of utilities; installation, placement, and replacement of manufactured homes; placement of recreational vehicles; installation of tanks; temporary structures and temporary or permanent storage; utility and miscellaneous Group U buildings and structures; certain building work exempt from permit under the Building Codes; and flood control projects.

Sec. 29.90.075. Establishment of flood hazard areas.

The Flood Insurance Study (FIS) for Santa Clara County, California and Incorporated Areas dated May 18, 2009, and all subsequent amendments and revisions, and the accompanying FIRMs, and all subsequent amendments and revisions to such maps, are hereby adopted by reference as a part of this Ordinance and serve as the basis for establishing flood hazard areas. Where the Building Code establishes flood hazard areas, such areas are established by this section. Additional maps and studies, when specifically adopted, supplement the FIS and FIRMs to establish additional flood hazard areas. Maps and studies that establish flood hazard areas are on file at the Department of Parks and Public Works (41 Miles

ITEM NO. 5.
12 Avenue) and the Community Development Department (110 E. Main Street).

Sec. 29.90.080. Interpretation.

In the interpretation and application of this Ordinance, all provisions shall be:
(1) Considered as minimum requirements.
(2) Liberally construed in favor of the governing body. (3) Deemed neither to limit nor repeal any other powers granted under state statutes.

DIVISION 4. DUTIES AND POWERS OF THE FLOODPLAIN ADMINISTRATOR Sec. 29.90.085. Designation.

The Director of Parks and Public Works is designated the Floodplain Administrator. The Floodplain Administrator shall have the authority to delegate performance of certain duties to other employees.

Sec. 29.90.090. General authority.

The Floodplain Administrator is authorized and directed to administer and enforce this Ordinance. The Floodplain Administrator shall have the authority to render interpretations of this Ordinance and to establish policies and procedures in order to clarify the application of its provisions. Such interpretations, policies, and procedures shall be consistent with the intent and purpose of this Ordinance and the flood provisions of the Building Code and shall not have the effect of waiving specific requirements without the granting of a variance pursuant to Division 8 of this Ordinance. The Floodplain Administrator is authorized to waive the submission of site plans, construction documents, and other data that are required by this Ordinance, but that are not required to be prepared by a qualified California (CA) Licensed Land Surveyor or Civil Engineer when it is found that the nature of the proposed development is such that the review of such submissions is not necessary to ascertain compliance with this Ordinance.

Sec. 29.90.095. Coordination.

The Floodplain Administrator shall coordinate with and provide comments to the Building Official to administer and enforce the flood provisions of the Building Code and to ensure compliance with the applicable provisions of this Ordinance. The Floodplain Administrator and the Building Official have the authority to establish written procedures for reviewing applications and conducting inspections for buildings and for administering and documenting determinations of substantial improvement and substantial damage made pursuant to Section 29.90.105 of this Ordinance.

Sec. 29.90.100. Duties.

ITEM NO. 5.
13 The Floodplain Administrator, in coordination with other pertinent offices of the Town, shall:
(1) Review all permit applications and plans to determine whether proposed development is located in flood hazard areas.
(2) Review all applications and plans for development in flood hazard areas for compliance with this Ordinance.
(3) Review, in coordination with the Building Official, required design certifications and documentation of elevations specified by the Building Code to determine that such certifications and documentations are complete.
(4) Review applications and plans for modification of any existing development in flood hazard areas for compliance with this Ordinance.
(5) Require development in flood hazard areas to be reasonably safe from flooding and to be designed and constructed with methods, practices, and materials that minimize flood damage.
(6) Interpret flood hazard area boundaries and provide available flood elevation and flood hazard information.
(7) Determine whether additional flood hazard data shall be obtained from other sources or developed by the applicant.
(8) Complete the appropriate section of the Department of Housing and Town Development Floodplain Ordinance Compliance Certification for Manufactured Home/Mobile Home Installations when submitted by applicants. (9) Review requests submitted to the Building Official seeking approval to modify the strict application of the flood load and flood resistant construction requirements of the Building Code, to determine whether such requests require consideration as a variance pursuant to Division 8 of this Ordinance.
(10) Coordinate with the Building Official and others to identify and investigate damaged buildings located in flood hazard areas and inform owners of the requirement to obtain permits for repairs.
(11) Require applicants who submit hydrologic and hydraulic engineering analyses to support permit applications to submit to FEMA the data and information necessary to maintain the FIRMs when the analyses indicate changes in base flood elevations, flood hazard area boundaries, or floodway designations; such submissions shall be made within six months of such data becoming available. (12) Require applicants who propose alteration of a watercourse to notify adjacent communities and the NFIP State Coordinating Agency, and to submit copies of such notifications to the FEMA.
(13) Inspect development in accordance with Division 7 of this Ordinance and inspect flood hazard areas to determine when development is undertaken without issuance of permits.
(14) Prepare comments and recommendations for consideration when applicants seek variances for development other than buildings in accordance with Division 8 of this Ordinance.
(15) Cite violations in accordance with Division 9 of this Ordinance.

ITEM NO. 5.
14 (16) Notify FEMA when the corporate boundaries of the Town of Los Gatos have been modified and provide a map and legal description of the changes in the corporate boundaries.

Sec. 29.90.105. Substantial improvement and substantial damage determinations.

For applications for building permits to improve buildings and structures, including alterations, movement, enlargement, replacement, repair, additions, rehabilitations, renovations, substantial improvements, repairs of substantial damage, and any other improvement of or work on such buildings and structures, the Floodplain Administrator, in coordination with the Building Official, shall:
(1) Estimate the market value or require the applicant to obtain an appraisal of the market value prepared by a qualified independent appraiser, of the building or structure before the start of construction of the proposed work; in the case of repair, the market value of the building or structure shall be the market value before the damage occurred and before any repairs are made. (2) Compare the cost to perform the improvement, the cost to repair the damaged building to its pre-damaged condition, or the combined costs of improvements and repairs, when applicable, to the market value of the building or structure. (3) Determine and document whether the proposed work constitutes substantial improvement or repair of substantial damage.
(4) Notify the applicant when it is determined that the work constitutes substantial improvement or repair of substantial damage and that compliance with the flood resistant construction requirements of the Building Code is required and notify the applicant when it is determined that work does not constitute substantial improvement or repair of substantial damage.

Sec. 29.90.110. Department records.

In addition to the requirements of the Building Code and this Ordinance, and regardless of any limitation on the period required for retention of public records, the Floodplain Administrator shall maintain and permanently keep and make available for public inspection all records that are necessary for the administration of this Ordinance and the flood provisions of the Building Codes, including FIS and FIRMs; documents from FEMA that amend or revise FIRMs; records of issuance of permits and denial of permits; determinations of whether proposed work constitutes substantial improvement or repair of substantial damage; required certifications and documentation specified by the Building Codes and this Ordinance; notifications to adjacent communities, FEMA, and the State related to alterations of watercourses; assurance that the flood carrying capacity of altered waterways will be maintained; documentation related to variances, including justification for issuance or denial; and records of enforcement actions taken pursuant to this Ordinance and the flood resistant provisions of the Building Codes.

ITEM NO. 5.
15

ITEM NO. 5.
16 DIVISION 5. PERMITS FOR FLOODPLAIN DEVELOPMENT
Sec. 29.90.115. Permits required.

Any person, owner, or authorized agent who intends to conduct any development in a flood hazard area shall first make application to the Floodplain Administrator and shall obtain the required permit for floodplain development. No permit shall be issued until compliance with the requirements of this Ordinance and all other applicable codes and regulations has been satisfied. No building permit shall be issued based on CLOMRs issued by FEMA. Depending on the nature and extent of proposed development that includes a building or structure, the Floodplain Administrator may determine a permit for floodplain development is required in addition to a building permit.

Sec. 29.90.120. Application for permit.

The applicant shall file an application in writing on a form furnished by the Floodplain Administrator. The information provided shall:
(1) Identify and describe the development to be covered by the permit. (2) Describe the land on which the proposed development is to be conducted by legal description, street address, or similar description that will readily identify and definitely locate the site.
(3) Indicate the use and occupancy for which the proposed development is intended. (4) Be accompanied by a site plan and construction documents as specified in Division 6 of this Ordinance, including grading, excavation and filling plans, and other information deemed appropriate by the Floodplain Administrator. (5) State the valuation of the proposed work.
(6) Be signed by the applicant or the applicant's authorized agent. (7) Include such other data and information required by the Floodplain Administrator to demonstrate compliance with this Ordinance.

Sec. 29.90.125. - Validity of permit.

The issuance of a permit for floodplain development under this Ordinance or the Building Codes shall not be construed to be a permit for, or approval of, any violation of this Ordinance, the Building Code, or any other ordinance of the Town. The issuance of a permit for floodplain development based on submitted documents and information shall not prevent the Floodplain Administrator from requiring the correction of errors and omissions. The Floodplain Administrator is authorized to prevent occupancy or use of a structure or site which is in violation of this Ordinance.

ITEM NO. 5.
17 Sec. 29.90.130. Other permits required.

The applicant shall obtain all other required state and federal permits prior to initiating work authorized by this Ordinance and shall provide documentation of such permits to the Floodplain Administrator. Such permits include, but are not limited to, the California State Water Resources Control Board for activities that affect wetlands and alter surface water flows, in conjunction with the U.S. Army Corps of Engineers; Section 404 of the Clean Water Act.

Sec. 29.90.135. Expiration.

A permit for floodplain development shall become invalid when the proposed development is not commenced within 180 days after its issuance, or when the work authorized is suspended or abandoned for a period of 180 days after the work commences.

Extensions shall be requested in writing and justifiable cause demonstrated. The Floodplain Administrator is authorized to grant, in writing, one or more extensions of time, for periods not more than 180 days each unless FEMA has issued notification of revision to the Flood Insurance Rate Study and FIRMs that alter the flood hazard area or floodway boundaries, flood zones, or base flood elevations, in which case the permit is invalid.

Sec. 29.90.140. Suspension or revocation.

The Floodplain Administrator is authorized to suspend or revoke a permit for floodplain development issued under this Ordinance wherever the permit is issued in error or on the basis of incorrect, inaccurate or incomplete information, or in violation of this Ordinance or any ordinance or code of the Town.

Sec. 29.90.145. Appeals of decisions.

When it is alleged there is an error in any decision or determination made by the Floodplain Administrator in the interpretation or enforcement of this Ordinance, such decision or determination may be appealed within 10 days of the decision or determination to the Planning Commission by filing a written appeal with the Town Clerk setting forth the reasons of the appeal.

DIVISION 6. SITE PLANS AND CONSTRUCTION DOCUMENTS
Sec. 29.90.150. Information for development in flood hazard areas.

The site plan or construction documents for any development subject to the requirements of this Ordinance shall be drawn to scale and shall include, as applicable to the proposed development:
(1) Delineation of flood hazard areas; floodway boundaries and flood zone(s); base flood elevation(s); ground elevations; proposed filling, grading, and excavation; and

ITEM NO. 5.
18 drainage patterns and facilities when necessary for review of the proposed development.
(2) Where base flood elevations or floodway data are not included on the FIRM or in the FIS, they shall be established in accordance with Section 29.90.155 or Section

29.90.160 of this Ordinance.
(3) Where the parcel on which the proposed development will take place will have more than 50 lots or is larger than 5 acres and base flood elevations are not included on the FIRM or in the FIS, such elevations shall be established in accordance with Section 29.90.155(2) of this Ordinance. (4) Location of the proposed activity and proposed structures; locations of water supply, sanitary sewer, and other utilities; and locations of existing buildings and structures.
(5) Location, extent, amount, and proposed final grades of any filling, grading, or excavation.
(6) Where the placement of fill is proposed, the amount, type, and source of fill material; compaction specifications; a description of the intended purpose of the fill areas; and evidence that the proposed fill areas are the minimum necessary to achieve the intended purpose.
(7) Existing and proposed alignment of any proposed alteration of a watercourse.

Sec. 29.90.155. Information in flood hazard areas without base flood elevations (approximate Zone A).

Where flood hazard areas are delineated on the FIRM and base flood elevation data have not been provided, the Floodplain Administrator is authorized to:
(1) Require the applicant to include base flood elevation data prepared by a qualified CA Licensed Civil Engineer in accordance with currently accepted engineering practices. Such analyses shall be performed and sealed by a qualified CA Licensed Civil Engineer. Studies, analyses, and computations shall be submitted in sufficient detail to allow review and approval by the Floodplain Administrator. The accuracy of data submitted for such determination shall be the responsibility of the applicant.
(2) Obtain, review, and provide to applicants base flood elevation and floodway data available from a federal or state agency or other source or require the applicant to obtain and use base flood elevation and floodway data available from a federal or state agency or other source.
(3) Where base flood elevation and floodway data are not available from another source, where the available data are deemed by the Floodplain Administrator to not reasonably reflect flooding conditions, or where the available data are known to be scientifically or technically incorrect or otherwise inadequate:
(a) Require the applicant to include base flood elevation data in accordance with Section 29.90.155(1) of this Ordinance; or

ITEM NO. 5.
19 (b) Specify that the base flood elevation is two (2) feet above the highest adjacent grade at the location of the development, provided there is no evidence indicating flood depths have been or may be greater than two (2) feet. (4) Where the base flood elevation data are to be used to support a request for a LOMC from FEMA, advise the applicant that the analyses shall be prepared by a qualified CA Licensed Civil Engineer in a format required by FEMA, and that it shall be the responsibility of the applicant to satisfy the submittal requirements and pay the processing fees.

Sec. 29.90.160. Additional analyses and certifications.

As applicable to the location and nature of the proposed development activity, and in addition to the requirements of this Ordinance, the applicant shall have the following analyses signed and sealed by a qualified CA Licensed Civil Engineer for submission with the site plan and construction documents:
(1) For development activities proposed to be located in a floodway, a floodway encroachment analysis that demonstrates that the encroachment of the proposed development will not cause any increase in base flood elevations; where the applicant proposes to undertake development activities that do increase base flood elevations, the applicant shall submit such analysis to FEMA as specified in Section

29.90.165 of this Ordinance and shall submit the CLOMR, when issued by FEMA, with the site plan and construction documents.
(2) For development activities proposed to be located in Zone A1-30 or Zone AE but floodways have not been designated, hydrologic and hydraulic analyses that demonstrate that the cumulative effect of the proposed development, when combined with all other existing and anticipated flood hazard area encroachments, will not increase the base flood elevation more than one (1) foot at any point within the Town. This requirement does not apply in any other special flood hazard areas. (3) For alteration of a watercourse, an engineering analysis prepared in accordance with standard engineering practices that demonstrates the flood-carrying capacity of the altered or relocated portion of the watercourse will not be decreased, and certification that the altered watercourse shall be maintained in a manner which preserves the channel's flood-carrying capacity. The applicant shall submit the analysis to FEMA as specified in Section 29.90.165 of this Ordinance. The applicant shall notify the chief executive officer of adjacent communities and the California Department of Water Resources. The Floodplain Administrator shall maintain a copy of the notification in the permit records and shall submit a copy to FEMA.

Sec. 29.90.165. Submission of additional data.

When additional hydrologic, hydraulic, or other engineering data, studies, and additional analyses are submitted to support an application, the applicant has the right to seek a LOMC from FEMA to change the base flood elevations, change floodway boundaries, or

ITEM NO. 5.
20 change boundaries of flood hazard areas shown on FIRMs, and to submit such data to FEMA for such purposes. The analyses shall be prepared by a qualified CA Licensed Civil Engineer in a format required by FEMA. Submittal requirements and processing fees shall be the responsibility of the applicant. Provided FEMA issues a CLOMR, construction of proposed flood control projects and land preparation for development are permitted, including clearing, excavation, grading, and filling. Permits for construction of buildings shall not be issued until the applicant satisfies the FEMA requirements for issuance of a Letter of Map Revision.

DIVISION 7. INSPECTIONS
Sec. 29.90.170. Inspections, in general.

Development for which a permit for floodplain development is required shall be subject to inspection. Approval as a result of an inspection shall not be construed to be an approval of a violation of the provisions of this Ordinance or the Building Code. Inspections presuming to give authority to violate or cancel the provisions of this Ordinance or the Building Code or other ordinances shall not be valid.

Sec. 29.90.175. Inspections of development other than buildings and structures.

The Floodplain Administrator shall make or cause to be made, inspections of all development other than buildings and structures that is authorized by issuance of a permit for floodplain development under this Ordinance. The Floodplain Administrator shall inspect flood hazard areas from time to time to determine when development is undertaken without issuance of a permit.

Sec. 29.90.180. Inspections of manufactured homes installations.

The Floodplain Administrator shall make or cause to be made, inspections of installation and replacement of manufactured homes in flood hazard areas authorized by issuance of a permit for floodplain development under this Ordinance. Upon installation of a manufactured home and receipt of the elevation certification required in Section 29.90.300 of this Ordinance the Floodplain Administrator shall inspect the installation or have the installation inspected.

Sec. 29.90.185. Buildings and structures.

The Building Official shall make or cause to be made, inspections for buildings and structures in flood hazard areas authorized by permit, in accordance with the Building Code:
(1) Lowest floor elevation. Upon placement of the lowest floor, including the basement, and prior to further vertical construction, certification of the elevation required in the Building Code shall be prepared by a CA Licensed Land Surveyor or Civil Engineer and submitted to the Building Official.
(2) Final inspection. Prior to the final inspection, certification of the elevation required

ITEM NO. 5.
21 in the Building Code shall be prepared by a CA Licensed Land Surveyor or Civil Engineer and submitted to the Building Official.

DIVISION 8. VARIANCES
Sec. 29.90.190. Nature of variances.

The considerations and conditions for variances set forth in this article are based on the general principle of zoning law that variances pertain to a piece of property and are not personal in nature. A variance may be issued for a parcel of property with physical characteristics so unusual that complying with the requirements of this Ordinance would create an exceptional hardship to the applicant or the surrounding property owners. The characteristics must be unique to the property and not be shared by adjacent parcels. The unique characteristic must pertain to the land itself, not to the structure, its inhabitants, or the property owners. The issuance of a variance is for floodplain management purposes only.

Federal flood insurance premium rates are determined by the NFIP according to actuarial risk and will not be modified by the granting of a variance.

It is the duty of the Town Council of Los Gatos to promote public health, safety, and welfare and minimize losses from flooding. This duty is so compelling and the implications of property damage and the cost of insuring a structure built below flood level are so serious that variances from the elevation or other requirements in the Building Codes should be quite rare.

The long term goal of preventing and reducing flood loss and damage, and minimizing recovery costs, inconvenience, danger, and suffering, can only be met when variances are strictly limited.

Therefore, the variance requirements in this Ordinance are detailed and contain multiple provisions that must be met before a variance can be properly issued. The criteria are designed to screen out those situations in which alternatives other than a variance are more appropriate.

Sec. 29.90.195. Variances; general.

The Planning Commission shall hear and decide requests for variances from the strict application of this Ordinance.

Sec. 29.90.200. Limitations on authority.

The Planning Commission shall base its determination on technical justifications submitted by applicants, the considerations and conditions set forth in this article, the comments and recommendations of the Floodplain Administrator and Building Official, as applicable, and has the right to attach such conditions to variances as it deems necessary to further the purposes and objectives of this Ordinance and the Building Code.

ITEM NO. 5.
22 Sec. 29.90.205. Records.

The Floodplain Administrator shall maintain a permanent record of all variance actions, including justification for issuance.

Sec. 29.90.210. Historic structures.

A variance is authorized to be issued for the repair, improvement, or rehabilitation of a historic structure upon a determination that the proposed repair, improvement, or rehabilitation will not preclude the structure's continued designation as a historic structure, and the variance is the minimum necessary to preserve the historic character and design of the structure. When the proposed work precludes the structure’s continued designation as a historic building, a variance shall not be granted and the structure and any repair, improvement, and rehabilitation shall be subject to the requirements of the Building Code.

Sec. 29.90.215. Restrictions in floodways.

A variance shall not be issued for any proposed development in a floodway when any increase in flood levels would result during the base flood discharge, as evidenced by the applicable analyses required in Section 29.90.160(1) of this Ordinance.

Sec. 29.90.220. Functionally dependent uses.

A variance is authorized to be issued for the construction or substantial improvement necessary for the conduct of a functionally dependent use provided the criteria in Section 1612 of the Building Code (CCR Title 24 Part 2) or Section R322 of the Residential Code (CCR Title 24 Part 2.5) are met, as applicable, and the variance is the minimum necessary to allow the construction or substantial improvement, and that all due consideration has been given to use of methods and materials that minimize flood damages during the base flood and create no additional threats to public safety.

Sec. 29.90.225. Considerations for issuance of variances.

In reviewing applications for variances, all technical evaluations, all relevant factors, all other requirements of this Ordinance and the Building Code, as applicable, and the following shall be considered:
(1) The danger that materials and debris may be swept onto other lands resulting in further injury or damage.
(2) The danger to life and property due to flooding or erosion damage. (3) The susceptibility of the proposed development, including contents, to flood damage and the effect of such damage on current and future owners. (4) The importance of the services provided by the proposed development to the Town.

ITEM NO. 5.
23 (5) The availability of alternate locations for the proposed development that are not subject to flooding or erosion and the necessity of a waterfront location, where applicable.
(6) The compatibility of the proposed development with existing and anticipated development.
(7) The relationship of the proposed development to the comprehensive plan and floodplain management program for that area.
(8) The safety of access to the property in times of flood for ordinary and emergency vehicles.
(9) The expected heights, velocity, duration, rate of rise, and debris and sediment transport of the floodwater and the effects of wave action, if applicable, expected at the site.
(10) The costs of providing governmental services during and after flood conditions including maintenance and repair of public utilities and facilities such as sewer, gas, electrical and water systems, streets, and bridges.

Sec. 29.90.230. Conditions for issuance of variances.

Variances shall only be issued upon:
(1) Submission by the applicant of a showing of good and sufficient cause that the unique characteristics of the size, configuration, or topography of the site limit compliance with any provision of this Ordinance or renders the elevation standards of the Building Code inappropriate.
(2) A determination that failure to grant the variance would result in exceptional hardship due to the physical characteristics of the land that render the lot undevelopable.
(3) A determination that the granting of a variance will not result in increased flood heights, additional threats to public safety, extraordinary public expense, nor create nuisances, cause fraud on or victimization of the public or future property owners, or conflict with existing local laws or ordinances.
(4) A determination that the variance is the minimum necessary, considering the flood hazard, to afford relief.
(5) When the request is to allow construction of the lowest floor of a new building or substantial improvement of a building below the base flood elevation, notification to the applicant in writing with the signature of the Floodplain Administrator specifying the difference between the base flood elevation and the proposed elevation of the lowest floor, stating that issuance of a variance to construct below the elevation required in the Building Code will result in increased premium rates for federal flood insurance up to amounts as high as $25 for $100 of insurance coverage, and that such construction below the required elevation increases risks to life and property.

ITEM NO. 5.
24 DIVISION 9. VIOLATIONS
Sec. 29.90.235. Violations.

Any development in any flood hazard area that is being performed without an issued permit or that is in conflict with an issued permit shall be deemed a violation. A building or structure without the documentation of the elevation of the lowest floor, other required design certifications, or other evidence of compliance required by this Ordinance or the Building Code, is presumed to be a violation until such time as required documentation is submitted. Violation of the requirements shall constitute either an infraction, misdemeanor, or be subject to a civil penalty at the Floodplain Administrators decision.

Sec. 29.90.240. Authority.

The Floodplain Administrator is authorized to serve notices of violation or stop work orders to owners of property involved, to the owner’s agent, or to the person or persons doing the work for development that is not within the scope of the Building Codes, but is regulated by this Ordinance and that is determined to be a violation.

Sec. 29.90.245. Unlawful continuance.

Any person who shall continue any work after having been served with a notice of violation or a stop work order, except such work as that person is directed to perform to remove or remedy a violation or unsafe condition, shall be subject to penalties as prescribed by law and as set forth in this Chapter and the Town Code.

DIVISION 10. BUILDINGS AND STRUCTURES
Sec. 29.90.250. Requirements for buildings and structures in flood hazard areas.

Applications for building and structures within the scope of the Building Code that are proposed in flood hazard areas shall comply with the applicable requirements of the Building Code and any local amendments to the Building Code.

Sec. 29.90.255. Detached garages and accessory storage structures.

Detached garages and accessory storage structures used only for parking or storage are permitted below the base flood elevation provided the garages and accessory storage structures:
(1) Are one story and not larger than 600 square feet in area when located in special flood hazard areas.
(2) Are anchored to resist flotation, collapse or lateral movement resulting from flood loads.

ITEM NO. 5.
25 (3) Have flood openings in accordance with the Building Code. (4) Have flood damage-resistant materials used below the base flood elevation. (5) Have mechanical, plumbing, and electrical systems, including plumbing fixtures, elevated to or above the base flood elevation.

Sec. 29.90.260. - Utility and Miscellaneous Group U.

Utility and miscellaneous Group U includes buildings that are accessory in character and miscellaneous structures not classified in any specific occupancy in the Building Code, including, but not limited to, agricultural buildings, aircraft hangars (accessory to a one- or two-family residence), barns, carports, fences more than 6 feet (1829 mm) high, grain silos (accessory to a residential occupancy), greenhouses, livestock shelters, private garages, retaining walls, sheds, stables, and towers. In addition to the Building Code requirements for fire and life safety, the following shall apply to utility and miscellaneous Group U buildings and structures in flood hazard areas:
(1) New construction and substantial improvement of such buildings and structures shall be anchored to prevent flotation, collapse, or lateral movement resulting from flood loads, including the effects of buoyancy, during conditions of the design flood. (2) New construction and substantial improvement of such buildings and structures, when fully enclosed by walls, shall be elevated such that the lowest floor, including basement, is elevated to or above the design flood elevation in accordance with ASCE 24 or shall be dry floodproofed in accordance with ASCE 24. (3) Unless dry floodproofed, fully enclosed areas below the design flood elevation shall be constructed in accordance with ASCE 24 and limited to parking, storage, and building access.
(4) When fully enclosed by walls, flood openings shall be installed in accordance with ASCE 24.
(5) Flood damage-resistant materials shall be used below the design flood elevation. (6) Mechanical, plumbing, and electrical systems, including plumbing fixtures, shall be located or installed in accordance with ASCE 24.

DIVISION 11. SUBDIVISIONS
Sec. 29.90.265. Minimum Requirements.

Subdivision proposals in flood hazard areas, including proposals for manufactured home parks and subdivisions, shall be reviewed to determine that:
(1) Such proposals are consistent with the need to minimize flood damage and will be reasonably safe from flooding.
(2) All public utilities and facilities, such as sewer, gas, electric, communications, and water systems are located and constructed to minimize or eliminate flood damage in accordance with Section 29.90.280 and Section 29.90.285 of this Ordinance, as

ITEM NO. 5.
26 applicable, and appropriate codes.
(3) Adequate drainage is provided to reduce exposure to flood hazards; in Zones AH and AO, adequate drainage paths shall be provided to guide floodwater around and away from proposed structures.

Sec. 29.90.270. Subdivision requirements.

In addition to the requirements of Section 29.90.265 of this Ordinance, where any portion of proposed subdivisions, including proposals for manufactured home parks and subdivisions, lies within a flood hazard area, the following shall be required:
(1) The flood hazard area, including floodways, as appropriate, shall be delineated on preliminary subdivision plats.
(2) Where the subdivision has more than 50 lots or is larger than 5 acres and base flood elevations are not included on the FIRM, the base flood elevations determined in accordance with Section 29.90.155(1) of this Ordinance. (3) When, as part of a proposed subdivision, fill will be placed to support buildings, the fill shall be placed in accordance with the Building Code and approval of the subdivision shall require submission of as-built elevations for each filled pad certified by a CA Licensed Land Surveyor or Registered Civil Engineer.

DIVISION 12. SITE IMPROVEMENTS, UTILITIES, AND LIMITATIONS Sec. 29.90.275. Minimum requirements.

All proposed development in flood hazard areas shall be reviewed to determine that:
(1) Such proposals are consistent with the need to minimize flood damage and will be reasonably safe from flooding.
(2) Where the proposed development has more than 50 lots or is larger than 5 acres and base flood elevations are not included on the FIRM, the base flood elevations determined in accordance with Section 29.90.155(1) of this Ordinance. (3) All public utilities and facilities, such as sewer, gas, electric, communications, and water systems are located and constructed to minimize or eliminate flood damage. (4) Adequate drainage is provided to reduce exposure to flood hazards; in Zones AH and AO, adequate drainage paths shall be provided to guide floodwater around and away from proposed structures.

Sec. 29.90.280. Sanitary sewer facilities.

All new and replaced sanitary sewer facilities, private sewage treatment plants (including all pumping stations and collector systems), and on-site waste disposal systems shall be designed in accordance with Chapter 7, ASCE 24, to minimize or eliminate infiltration of floodwaters into the facilities and discharge from the facilities into flood waters, and

ITEM NO. 5.
27 impairment of the facilities and systems.

Sec. 29.90.285. Water supply facilities.

All new and replaced water supply facilities shall be designed in accordance with the provisions of Chapter 7, ASCE 24, to minimize or eliminate infiltration of floodwaters into the systems.

Sec. 29.90.290. Development in floodways.

Development, site improvements, and land disturbing activity involving fill or regrading shall not be authorized in the floodway unless the floodway encroachment analysis required in Section 29.90.160(1) of this Ordinance demonstrates the proposed work will not result in any increase in the base flood level during occurrence of the base flood discharge.

Sec. 29.90.295. Limitations on placement of fill.

Subject to the limitations of this Ordinance, fill shall be designed to be stable under conditions of flooding including rapid rise and rapid drawdown of floodwaters, prolonged inundation, and protection against flood-related erosion and scour. In addition to this Ordinance, when intended to support buildings and structures, fill shall comply with the requirements of the Building Code. The placement of fill intended to change base flood elevations, change floodway boundaries, or change boundaries of flood hazard areas shown on FIRMs shall be subject to the requirements of Section 29.90.165 of this Ordinance.

DIVISION 13. INSTALLATION OF MANUFACTURED HOMES
Sec. 29.90.300. Installation.

All manufactured homes installed in flood hazard areas shall be installed by an installer that is licensed pursuant to the Business and Professions Code and shall comply with the requirements of the Department of Housing and Community Development (HCD) and the requirements of this Ordinance. In addition to permits pursuant to this Ordinance, permits from the HCD are required where the HCD is the enforcement agency for installation of manufactured homes. Upon completion of installation and prior to the final inspection by the Floodplain Administrator, the installer shall submit certification of the elevation of the manufactured home, prepared by a CA Licensed Land Surveyor or Registered Civil Engineer, to the Floodplain Administrator.

Sec. 29.90.305. Foundations.

All new and replacement manufactured homes, including substantial improvement of manufactured homes installed in flood hazard areas shall be installed on permanent, reinforced foundations that are designed in accordance with the foundation requirements of Section

ITEM NO. 5.
28 R322.2 of the Residential Code (CCR Title 24 Part 2.5) and this Ordinance. Foundations for manufactured homes subject to Section 29.90.320 of this Ordinance are permitted to be reinforced piers or other foundation elements of at least equivalent strength.

Sec. 29.90.310. Anchoring.

All new and replacement manufactured homes to be placed or substantially improved in a flood hazard area shall be installed using methods and practices which minimize flood damage and shall be securely anchored to an adequately anchored foundation system to resist flotation, collapse, and lateral movement. Methods of anchoring are authorized to include, but are not limited to, use of over-the-top or frame ties to ground anchors. This requirement is in addition to applicable State and local anchoring requirements for resisting wind loads and seismic loads.

Sec. 29.90.315. General elevation requirement.

Unless subject to the requirements of Section 29.90.320 of this Ordinance, all manufactured homes that are placed, replaced, or substantially improved on sites located: (a) outside of a manufactured home park or subdivision; (b) in a new manufactured home park or subdivision; (c) in an expansion to an existing manufactured home park or subdivision; or (d) in an existing manufactured home park or subdivision upon which a manufactured home has incurred "substantial damage" as the result of a flood, shall be elevated such that the lowest floor, or bottom of the lowest horizontal member of the lowest floor, as applicable to the flood hazard area, is at or above the base flood elevation.

Sec. 29.90.320. Elevation requirement for certain existing manufactured home parks and subdivisions.

Manufactured homes that are not subject to Section 29.90.315 of this Ordinance, including manufactured homes that are placed, replaced, or substantially improved on sites located in an existing manufactured home park or subdivision, unless on a site where substantial damage as a result of flooding has occurred, shall be elevated such that either the:
(1) Lowest floor, or bottom of the lowest horizontal structural member, as applicable to the flood hazard area, is at or above the base flood elevation. (2) Bottom of the frame is supported by reinforced piers or other foundation elements of at least equivalent strength that are not less than 36 inches in height above grade.

Sec. 29.90.325. Flood damage-resistant materials.

Materials below elevated manufactured homes shall comply with the flood-damage resistant materials requirements of Section R322 of the Residential Code (CCR Title 24 Part 2.5).

ITEM NO. 5.
29 Sec. 29.90.330. Enclosures.

Fully enclosed areas below elevated manufactured homes shall comply with the enclosed area requirements of Section R322 of the residential code (CCR Title 24 Part 2.5).

Sec. 29.90.335. Protection of mechanical equipment and outside appliances.

Mechanical equipment and outside appliances shall be elevated to or above the lowest floor or bottom of the lowest horizontal structural member of the manufactured home, as applicable to the flood hazard area.

Exception. Where such equipment and appliances are designed and installed to prevent water from entering or accumulating within their components and the systems are constructed to resist hydrostatic and hydrodynamic loads and stresses, including the effects of buoyancy, during the occurrence of flooding up to the elevation required by Section29.90.315 or Section 29.90.320 of this Ordinance, as applicable, the systems and equipment shall be permitted to be located below that elevation. Electrical wiring systems shall be permitted below the design flood elevation provided they conform to the provisions of NFPA 70 (National Electric Code).

DIVISION 14. RECREATIONAL VEHICLES
Sec. 29.90.340. Temporary placement.

Recreational vehicles in flood hazard areas, shall be placed on a site for less than 180 consecutive days or shall be fully licensed and ready for highway use. Ready for highway use means the recreational vehicle is on wheels or jacking system, is attached to the site only by quick disconnect type utilities and security devices, and has no permanently attached additions, such as rooms, stairs, decks, and porches.

Sec. 29.90.345. Permanent placement.

Recreational vehicles that do not meet the limitations in Section 29.90.340 for temporary placement shall meet the requirements of Division 13 for manufactured homes.

DIVISION 15. OTHER DEVELOPMENT
Sec. 29.90.350. General requirements for other development.

All development, including man-made changes to improved or unimproved real estate for which specific provisions are not specified in this Ordinance or the Building Code, shall:
(1) Be located and constructed to minimize flood damage. (2) Meet the limitations of Section 29.90.290 of this Ordinance when located in a

ITEM NO. 5.
30 regulated floodway.
(3) Be anchored to prevent flotation, collapse, or lateral movement resulting from hydrostatic loads, including the effects of buoyancy, during conditions of the design flood.
(4) Be constructed of flood damage-resistant materials. (5) Have mechanical, plumbing, and electrical systems above the design flood elevation or meet the requirements of ASCE 24, except that minimum electric service required to address life safety and electric code requirements is permitted below the design flood elevation provided it conforms to the provisions of the electrical part of the Building Code for wet locations.

Sec. 29.90.355. Tanks.

Tanks that serve buildings shall comply with the requirements of the Building Code.

Underground and above-ground tanks that serve other purposes shall be designed, constructed, installed, and anchored in accordance with ASCE 24.

Sec. 29.90.360. - Requirements for temporary structures and temporary storage in flood hazard areas.

Temporary structures shall be erected for a period of less than 180 days and temporary storage of goods and materials shall be permitted for a period of less than 180 days. Extensions may be granted in accordance with Section 29.90.135 of this Ordinance. In addition, the following apply:
(1) Temporary structures shall be anchored to prevent flotation, collapse, or lateral movement resulting from hydrostatic loads, including the effects of buoyancy, during conditions of the design flood. Fully enclosed temporary structures shall have flood openings that are in accordance with ASCE 24 to allow for the automatic entry and exit of flood waters.
(2) Temporary stored materials shall not include hazardous materials. (3) The requirements of Section 29.90.290 of this Ordinance, when located in floodways.

Sec. 29.90.365. Fences in floodways.

Fences in floodways that have the potential to block the passage of floodwaters, such as stockade fences and wire mesh fences, shall meet the limitations of Section 29.90.290 of this Ordinance.

Sec. 29.90.370. Oil derricks.

Oil derricks located in flood hazard areas shall be designed in conformance with flood loads required by the Building Code.

ITEM NO. 5.
31 Sec. 29.90.375. Retaining walls, sidewalks and driveways in floodways.

Retaining walls and sidewalks and driveways that involve placement of fill in floodways shall meet the limitations of Section 29.90.290 of this Ordinance and the requirements for site grading in Chapter 18 of the Building Code.

Sec. 29.90.380. Roads and watercourse crossings in floodways.

Roads and watercourse crossings that encroach into floodways or riverine waterways with base flood elevations where floodways have not been designated, including roads, bridges, culverts, low-water crossings, and similar means for vehicles or pedestrians to travel from one side of a watercourse to the other side shall meet the limitations of Section 29.90.290 of this Ordinance. Alteration of a watercourse that is part of work proposed for a road or watercourse crossing shall meet the requirements of Section 29.90.160(3) of this Ordinance.

Sec. 29.90.385. Swimming pools.

Above-ground swimming pools, on-ground swimming pools, and in-ground swimming pools that involve placement of fill in floodways shall meet the requirement of Section

29.90.290 of this Ordinance.

DIVISION 16. FLOOD CONTROL PROJECTS
Sec. 29.90.390. Flood control projects; general.

In addition to applicable federal, state, and other local permits, a permit for floodplain development is required for construction of flood control projects. The purpose for the permit is to examine the impact on flood hazard areas, floodways, and base flood elevations shown on the FIRM. Unless otherwise authorized by separate regulations, issuance of this permit does not address the sufficiency of the structural elements of the proposed flood control project.

Permits for floodplain development and building permits in areas affected by proposed flood control projects shall not be issued based on CLOMR issued by FEMA.

Sec. 29.90.395. Flood control projects; applications.

Applications for permits for flood control projects shall include documentation including, but not limited to:
(1) Site plan or document showing the existing topography and the boundaries of the flood hazard areas, floodway boundaries, and base flood elevations shown on the FIRM.
(2) Site plan or document showing the proposed topography and the proposed changes to the boundaries of the flood hazard areas, floodway boundaries, and

ITEM NO. 5.
32 base flood elevations.
(3) The documentation submitted to FEMA for a CLOMR and, if issued, the Conditional Letter of Map Revision. Submittal requirements and processing fees shall be the responsibility of the applicant. A CLOMR is required when a proposed flood control project alters a floodway and increases base flood elevations more than greater than 0.00 feet, or alters a watercourse a riverine flood hazard area for which base flood elevations are included in the Flood Insurance Study or on the FIRM and floodways have not been designated and increases base flood elevations more than

1.0 foot.

SECTION III. Warning.

The degree of flood protection required by this Ordinance and the Building Codesis considered reasonable for regulatory purposes and is based on scientific and engineering considerations. Larger floods can and will occur. Flood heights may be increased by man-made or natural causes. Enforcement of this Ordinance and the Building Codes does not imply that land outside the special flood hazard areas, or that uses permitted within such flood hazard areas, will be free from flooding or flood damage. The flood hazard areas and base flood elevations contained in the FIS and shown on FIRMs and the requirements of Title 44 Code of Federal Regulations, Sections 59 and 60 may be revised by the FEMA, requiring the Town to revise this Ordinance to remain eligible for participation in the NFIP. No guaranty of vested use, existing use, or future use is implied or expressed by compliance with this Ordinance.

SECTION IV. Severability.

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

SECTION V. CEQA.

Adopting this Ordinance is exempt pursuant to CEQA, Section 15061(b)(3), because it can be seen with certainty that this Ordinance will not significantly affect the physical environment in that this Ordinance makes changes to floodplain management land use regulations involving no physical activities at this time. Future projects would be subject to CEQA.

ITEM NO. 5.
33 SECTION VI. Publication.

In accordance with Section 36937 of the Government Code of the State of California, this Ordinance takes effect 30 days from the date of its passage. The Town Council hereby directs the Town Clerk to cause this Ordinance or a summary thereof to be published or posted in accordance with Section 36933 of the Government Code of the State of California.

SECTION VII. Effective Date.

This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the 21st day of October 2025, and adopted by the Town Council of the Town of Los Gatos at its regular meeting on the ____ day of _____ 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

ITEM NO. 5.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/04/2025
ITEM NO: 6
DATE: October 16, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Approve Modifications to the Town’s General Fund Reserve Policy as Recommended by the Finance Commission
RECOMMENDATION: Approve modifications to the Town’s General Fund Reserve Policy as recommended by the Finance Commission and redlined in Attachment 1
FISCAL IMPACT:

There is no fiscal impact of reviewing and modifying the General Fund Reserve Policy.

STRATEGIC PRIORITY:

This initiative supports the Town’s strategic priority of ensuring prudent financial management.

BACKGROUND:

The Town of Los Gatos has historically maintained a strong General Fund reserve position, contributing to its fiscal stability and high credit ratings. The current General Fund Reserve Policy was last updated in 2021 and outlines a combined minimum reserve of 25% of General Fund ongoing operating expenditures, split evenly between a Catastrophic Reserve and a Budget Stabilization Reserve.

DISCUSSION:

In light of evolving best practices and benchmarking against peer jurisdictions, staff prepared a revised policy to enhance clarity, structure, and long-term resilience.

The Finance Commission discussed the General Fund Reserve Policy at its meetings on March 10 and September 8, 2025, and recommended that the Town Council approve the recommended changes.

ITEM NO. 6.

PAGE 2 OF 9
SUBJECT: Approve the General Fund Reserve Policy
DATE: October 28, 2025
In addition, the Finance Commission requested staff to research the following three areas:
 Best practices, staff’s finance experience, and how other cities establish an unassigned fund balance reserve target, including whether the targets are based on a percentage or dollar amount.
 The process for establishing assigned funds, and a review of current assigned fund balances in the General Fund to determine if they remain relevant.  Evaluate the need to have a committed fund balance for specific large, multiyear capital projects that would otherwise be in assigned fund balances.

Staff returned to the Finance Commission with the following analysis and updated redlined version of the General Fund Reserve Policy (Attachment 1) at its October 13, 2025, meeting.

Set percentage or dollar target for Unassigned Fund Balance:

In governmental accounting, under GASB 54, the Unassigned Fund Balance represents the portion of the General Fund balance that has not been restricted, committed, or assigned to specific purposes. It provides the Town with the greatest degree of flexibility to respond to unexpected financial needs, manage cash flow timing, and maintain fiscal stability during periods of uncertainty.

Historically, the Government Finance Officers Association (GFOA) has recommended that general-purpose local governments maintain a minimum unrestricted fund balance in the General Fund equivalent to two months of regular operating revenues or expenditures, or approximately 16.7% of annual General Fund expenditures. It should be noted that the GFOA includes restricted funds that would otherwise be funded with unassigned fund balances (e.g., contingency reserves) as part of the calculation of the two-month target. This benchmark serves as a prudent minimum for ensuring liquidity and stability during routine fluctuations in revenues and expenditures.

While City Managers have responsibility for overall city operations, the City Managers rely heavily on the Finance Directors and finance practices to govern fund balance target decisions.

To place this recommendation in context, staff reviewed General Fund Reserve policies across Santa Clara County jurisdictions. The following table summarizes each agency’s reserve targets, structure, and notable practices.

Jurisdiction Target(s) & Structure
Los Gatos (Town) Combined minimum 25% of GF operating expenditures:

12.5% Catastrophic + 12.5% Stabilization

ITEM NO. 6.

PAGE 3 OF 9
SUBJECT: Approve the General Fund Reserve Policy
DATE: October 28, 2025
Jurisdiction Target(s) & Structure
Santa Clara (City) Budget Stabilization Reserve = 3 months (~25%) of GF budget; FY 24/25 minimum = 15%
San José (City) Aggregate goal = 10% of GF expenditures across Contingency, Stabilization, Catastrophic
Sunnyvale (City) Budget Stabilization Fund ≥ 15% of GF revenues Mountain View (City) General Fund Reserve = 20–25% of GF net expenditures Palo Alto (City) Budget Stabilization Reserve = 15–20% of GF expenses; separate Budget Uncertainty Reserve
Cupertino (City) Economic Uncertainty Reserve at least 25% Campbell (City) Economic Fluctuations Reserve = 16.67%; Emergency Reserve = 10% of revenues; $1M cash reserve
Milpitas (City) Contingency Reserve ≥ 16.67% of GF expenditures; Stabilization Reserve = 16.67%
Gilroy (City) Minimum GF fund balance = 30%
Morgan Hill (City) Minimum reserve threshold = 25% of GF expenditures Los Altos (City) References GFOA “two months” guidance; recent ACFR notes 20% GF reserve
Saratoga (City) Current 6/30/2024 $9.1 million GF Unassigned Fund Balance
Los Altos Hills (Town) Emergency Contingency ≥ $1.25M; Operating Contingency ≈ 1 year of personnel costs
Monte Sereno (City) GF reserve at least 20% to 25% annual GF expenditures,≈ “nearly two years” of operating costs (practice)
While the GFOA’s traditional guidance offers a sound baseline, the Association’s 2023 report, Rethinking Reserves, recommends that local governments move beyond a fixed-percentage approach and adopt a risk-based, range-based strategy for setting reserve targets. The report

ITEM NO. 6.

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SUBJECT: Approve the General Fund Reserve Policy
DATE: October 28, 2025
emphasizes that the appropriate reserve level depends on a community’s specific risk profile, including exposure to economic cycles, disaster vulnerability, and reliance on volatile revenue sources—rather than a uniform national standard. Interestingly, the GFOA is currently exploring the conversion of the best practice to an advisory, which eliminates explicit targets for reserve balances and puts in place a guidance-based advisory.

Under this modern framework, reserves are best understood not merely as a savings account but as a form of self-insurance, a financial tool for managing uncertainty and maintaining service continuity in the face of disruptions. The Rethinking Reserves approach encourages establishing a target range rather than a fixed point. The lower bound serves as a minimum to preserve fiscal stability, while the upper bound identifies a ceiling beyond which funds may be reallocated to other community priorities or one-time investments.

Applying these principles, the Town of Los Gatos currently maintains a combined minimum reserve of 25% of General Fund operating expenditures, which is divided equally between the Catastrophic Reserve (12.5%) and the Budget Stabilization Reserve (12.5%), and an Unassigned Fund Balance Reserve of $4,000,000, representing approximately 6.35% of annual General Fund operating expenditures. Together, these reserves total roughly 31.35% of General Fund operating expenditures, placing the Town well above the GFOA baseline and within the upper range of comparable jurisdictions.

In light of the GFOA’s Rethinking Reserves recommendations and the Town’s already strong reserve position, staff recommend maintaining the existing Unassigned Fund Balance Reserve of $4,000,000 as a flexible tool for cash flow management and minor contingencies, rather than establishing a fixed percentage target. A rigid percentage requirement for unassigned fund balance could unnecessarily limit the Town’s ability to respond to needs or take advantage of short-term fiscal opportunities. For example, the Town has planned to use some of the unassigned fund balance to balance the 2025-26 budget.

Instead, staff recommend that the Town’s General Fund Reserve Policy initially reflect a riskinformed reserve range approach that:
 Treats the Town’s existing reserves collectively as a form of self-insurance against identified fiscal and operational risks;
 Expresses initial reserve goals as 25% of General Fund operating expenditures, reflecting current contingency and catastrophic reserves balances as a minimum, but also accepting the establishment of the $4,000,000 Unassigned Fund Balance;  Upon funding the reserve levels pursuant to the Town’s General Fund Reserve Policy, any remaining surplus of fiscal year revenues above expenditures shall be placed in the Unassigned Fund Balance; and
 Commits to periodic risk-based reassessment of the available Unassigned Fund Balance adequacy in light of changing fiscal, environmental, or operational conditions, including

ITEM NO. 6.

PAGE 5 OF 9
SUBJECT: Approve the General Fund Reserve Policy
DATE: October 28, 2025
consideration of lifecycle capital assets which may not be identified and funded.

This adaptive approach maintains the Town’s longstanding commitment to prudent fiscal management while aligning with modern best practices in public finance, ensuring that Los Gatos remains well-positioned to navigate both anticipated and unforeseen financial challenges.

Together, these updates position the Town’s reserve policy to balance prudence with adaptability, anchored in established GFOA best practices while responsive to the Town’s specific risk environment. However, given the projected structural deficit, the Town needs to consider alternatives and not rely on current fund balances to address such deficits on an ongoing basis.

The following section reviews the Town’s current assigned fund balances to ensure that they remain relevant and aligned with this updated framework for long-term financial resilience.

Review Current Assigned Fund Balances in the General Fund and Determine if they Remain Relevant
Under the principles established by GASB Statement No. 54, assigned fund balances represent resources that the Town intends to use for specific purposes but that have not been formally committed by the Town Council. These balances provide flexibility to manage planned projects, address operational contingencies, and respond to emerging needs while preserving the Town’s overall financial stability. Assignments are typically authorized by the Town Manager or Finance Director and ratified annually by the Town Council as part of the budget adoption or year-end closing process.

Consistent with the Government Finance Officers Association (GFOA) Fund Balance Guidelines for the General Fund, assigned fund balances serve as an important component of the Town’s fiscal strategy by providing earmarked but adaptable funding sources. The GFOA emphasizes that governments should maintain clearly defined policies that establish how assigned resources are created, used, and replenished, and should periodically reassess the purpose of each assignment to ensure that it remains aligned with current community needs, risk exposure, and financial priorities. Additionally, the GFOA recommends that assigned or unrestricted fund balances be reserved primarily for one-time or nonrecurring expenditures, rather than ongoing operational costs, to promote long-term structural balance.

As of June 30, 2025, the Town’s estimated Assigned Fund Balances in the General Fund, as adopted by the Town Council in the June 3, 2025, Fund Balance Resolution, are summarized on the next page:

ITEM NO. 6.

PAGE 6 OF 9
SUBJECT: Approve the General Fund Reserve Policy
DATE: October 28, 2025
Reserve Name Purpose
Estimated
Balance (FY
2024–25)
Capital/Special
Projects Reserve
Funds infrastructure and capital projects identified in the Town’s five-year Capital Improvement Program
(CIP) or other Council priorities.
$1,506,449
Compensated
Absences Reserve
Provides funding for 50% of all vested sick leave,
vacation, and compensatory time, per the Town’s
General Fund Reserve Policy.
$1,555,478
Carryover
Encumbrances
Holds funds for approved purchase orders and
contracts not finalized by fiscal year-end. $85,861
Sustainability
Reserve
Established from the closure of the Solid Waste
Management Fund in FY 2008–09, dedicated to
conservation, recycling, and sustainability initiatives. $140,553
Market Fluctuation
Reserve
Captures unrealized investment gains of $10,000 or
more per GASB 31, to manage volatility in investment
income, per Town General Fund Reserve Policy.
$1,712,246
Open Space Reserve
Set aside for the preservation of open space, trail
connections, and protection of natural features and
scenic areas.
$410,000
ERAF Risk Reserve
Held 30% of anticipated ERAF proceeds pending
litigation; excess balance moved to Unassigned Fund
Balance during FY 2024–25.
$0
Council Priorities –
Economic Recovery
Temporary reserve established to support economic
recovery efforts; fully expended in FY 2024–25. $0
Together, these assigned balances total approximately $5.41 million, reflecting the Town’s proactive approach to managing future financial commitments, existing obligations, and onetime initiatives.

In line with GFOA guidance, staff conducted a review of the assigned reserves to ensure they remain relevant and aligned with current Town goals. Two balances, the Sustainability Reserve ($140,553) and the Open Space Reserve ($410,000), have been identified as potential candidates for reassignment. These funds were originally designated for specific purposes that are no longer active or that may now be more effectively supported through ongoing programmatic funding or capital allocations.

Staff recommends that the Town Council consider these reserves during the 2026–27 Operating Budget process. Options include realigning the Sustainability Reserve with the Town’s Environmental Services Program to fund energy efficiency and waste reduction initiatives, or

ITEM NO. 6.

PAGE 7 OF 9
SUBJECT: Approve the General Fund Reserve Policy
DATE: October 28, 2025
reallocating the Open Space Reserve to supplement approved projects in the Town’s Capital Improvement Program. Alternatively, both balances could be reassigned to the Unassigned Fund Balance, enhancing financial flexibility and liquidity to address future operational or strategic needs.

By maintaining clearly defined assigned reserves while periodically reviewing their purpose and funding levels, the Town ensures that resources are managed transparently and used efficiently. This approach aligns with GFOA best practices and demonstrates the Town’s ongoing commitment to prudent fiscal management, accountability, and adaptability to changing conditions.

While assigned fund balances provide flexibility for planned or intended uses, committed fund balances represent a higher level of Council designation. Under GASB 54, committed funds are constrained by formal action of the Town Council, typically through resolution or ordinance, and cannot be reallocated without equivalent formal action. These reserves are designed to support major long-term obligations or specific risks identified by the governing body, such as disaster recovery, economic stabilization, or pension liabilities.

The following section outlines the Town’s committed fund balance structure, including the Catastrophic Reserve, Budget Stabilization Reserve, and Pension/OPEB Reserve, and how each supports the Town’s broader strategy of maintaining financial resilience and continuity of services.

Guideline for Committed or Assigned Fund Balance for Capital Projects Under GASB Statement No. 54, governmental fund balance can be classified as committed (formal constraint by governing body) or assigned (reflecting intent by management or authorized officials). Because capital projects often involve long time horizons, cost uncertainties, and evolving priorities, placing large general fund dollars into a committed status prematurely can reduce flexibility and make adaptation harder in response to new opportunities. Consistent with prevailing practices among California municipalities and GFOA guidance, the Town will continue to classify these funds as assigned unless a project is fully authorized and construction-ready, where the Town may consider committing such funds.

Current Practice and Rationale
As of June 30, 2025, the Town maintains a Capital/Special Projects Reserve of $1,506,449 as part of the assigned fund balances. This reserve is intended to support infrastructure or facility projects identified in the Town’s five-year Capital Improvement Program (CIP) or other Council priorities. Rather than converting this into a committed balance, which would legally restrict its use absent further Council action, staff proposes to keep all capital project funding in the assigned category until specific projects satisfy stringent readiness criteria.

ITEM NO. 6.

PAGE 8 OF 9
SUBJECT: Approve the General Fund Reserve Policy
DATE: October 28, 2025
Keeping capital funds in assigned status provides these benefits:
 Flexibility to respond to changing priorities or shifting funding landscapes – If a grant is withdrawn, a project is delayed, or an urgent need arises elsewhere, the Town retains discretion to reallocate or reprioritize the funds, subject to Council oversight.  Avoids overcommitment risk – Committing too early can lock the Town into certain paths before design, cost, or funding risks are fully vetted.  Simplicity in internal management and reporting – The Town can treat the reserve as a pool or pipeline of capital funding, shifting to projects when ready, rather than needing to reclassify large sums repeatedly. This fits our new tiered structure for capital projects.
 Consistency with GFOA’s concept of reserves as buffers, not rigid lockboxes – The GFOA guidance encourages managing fund balance designations in light of risk, volatility, and the unique financial structure of each government.

In a review of peer city reserve policies across California, staff did not locate solid examples in which municipalities routinely move general fund capital reserves into committed status as a default practice. Some jurisdictions do establish committed reserves for very specific risks (e.g., debt service, catastrophe, pension liabilities), but capital funding is more often left in flexible, assigned categories until fully scoped and funded.

These practices are consistent with GFOA’s guidance that fund balance designations should be linked to a government’s capital planning process, with the highest level of constraint applied only when a project has reached a committed and executable stage. Premature commitment can unnecessarily restrict flexibility, while delayed commitment can lead to uncertainty in funding availability or project delivery.

RECOMMENDATION:

The revised policy incorporates feedback from the Finance Commission and GFOA guidance while retaining the Town’s core reserve structure. It also formally establishes the General Fund Unassigned Fund Balance Reserve with the 2025–26 Adopted Budget, reflecting available resources that are not allocated for other uses and can support temporary revenue shortfalls or one-time expenditures. This Reserve is intended to represent available resources that are not allocated for other uses and can be used to address changes in the current year’s net revenue.

Changes may include net revenue that falls to the bottom line or additional expenditures that are not covered by revenue or transfers into the General Fund. In addition, staff recommends removing obsolete language related to the Almond Grove Reserve, as it is no longer in use. Staff recommends establishing a clear order for year-end surplus deposits. The recommended changes are redlined in Attachment 1.

Staff is recommending that the Town Council approve the changes redlined in Attachment 1 as recommended by the Finance Commission.

ITEM NO. 6.

PAGE 9 OF 9
SUBJECT: Approve the General Fund Reserve Policy
DATE: October 28, 2025
COORDINATION:

This item was developed in coordination with the Town Manager's Office and the Finance Department.

Attachments:

1. General Fund Reserve Policy-Redlined

2. Fund Balance Resolution June 3, 2025

ITEM NO. 6.

ATTACHMENT 1

COUNCIL POLICY MANUAL
TITLE: General Fund Reserve Policy POLICY NUMBER: 4-03
EFFECTIVE DATE: 05/16/2011 PAGES: 6
ENABLING ACTIONS: REVISED DATES: 02/21/2017;
05/15/2018; 06/04/2019, 09/21/2021,
11/04/2025
APPROVED:

PURPOSE
The purpose of this Policy is to establish a target minimum level of designated reserves in the General Fund to:
 Reduce the financial impacts associated with a disaster or catastrophic event;  Respond to the challenges of a changing economic environment, including prolonged downturns in the local, state, or national economy; and  Demonstrate continued prudent fiscal management and creditworthiness.; and  Define a replenishment plan and deposit hierarchy to maintain fiscal resilience.

BACKGROUND
The Town of Los Gatos has always maintained a high level of General Fund reserves, which has contributed to superior ratings by credit rating agencies; provided financial flexibility in economic downturns; contributed a source of investment income for General Fund operations; and assured financial coverage in the event of future emergencies.

General Fund operating expenditures refer to the recurring costs necessary to support the dayto-day delivery of public services. These include personnel costs such as salaries, wages, employee benefits, and pension contributions; contracted services like legal counsel, janitorial services, and IT support; and essential operational expenses such as utilities, office supplies, and insurance. They also encompass routine maintenance, minor repairs, and programmatic costs associated with departments like police, fire, parks and recreation, and community development. These expenditures are distinct from one-time or capital costs and are typically funded through general revenues such as property taxes, sales taxes, and service fees.

Small Town Service Community Stewardship Future Focus

ITEM NO. 6.

TITLE: General Fund Reserve Policy PAGE:
2 of 8
POLICY NUMBER:
4-03

GUIDING PRINCIPLES
Following sound financial practices and adhering to the Government Finance Officers of America (GFOA) recommendations, the Town’s designated reserves include reserves for known and unknown contingencies, which take into consideration the:
 Diversity of revenue base
 Volatility of revenue structure
 Changes in political environment
 Frequency of operating surpluses/deficits
 Cash flow management practices
Transparency & Review
The General Fund Reserve Policy is to be reviewed periodically by the Town Council as part of the annual operating budget review and adoption process. Reserves are reported at the Monthly Financial and Investment Report.

POLICY
The fund balance is the difference between the assets and liabilities reported in a governmental fund. Under current accounting standards, there are five separate components of fund balance, each of which identifies the extent to which the Town is bound to honor constraints on the specific purposes for which amounts can be spent.

Government Accounting Standards Board (GASB) 54 includes a prescribed hierarchy based on the extent to which a city is bound by constraints for the use of the funds reported in governmental funds. GASB 54 provides the classification as non-spendable, restricted, committed, assigned and unassigned based on the relative strength of the constraints that control how specific amounts can be spent. The following definitions are provided in GASB 54:
 Non-spendable
These funds are not available for expenditures based on legal or contractual requirements.
 Restricted
These funds are governed by externally enforceable restrictions.  Committed
Fund balances in this category are limited by the government’s highest level of decision making (in this case the Town Council). Any changes of this designation must be done in the same manner that it was implemented.
 Assigned
For funds to be assigned, there must be an intended use which can be established by the Town Council or an official delegated by the council.  Unassigned
This classification is the default for all funds that do not fit into the other categories.

ITEM NO. 6.

TITLE: General Fund Reserve Policy PAGE:
3 of 8
POLICY NUMBER:
4-03
This, however, should not be a negative number for the General Fund. If it is, the assigned fund balance must be adjusted to offset the Unassigned Fund balance.

The following components are defined by Governmental Accounting Standards Board (GASB) Statement No. 54 and shall constitute the Town’s Fund Balance:
 Nonspendable Fund Balance (inherently nonspendable)
 Restricted Fund Balance (externally enforceable limitations on use)  Committed Fund Balance (self-imposed limitations on use)  Assigned Fund Balance (limitation resulting from intended use)  Unassigned Fund Balance (residual net resources)
The first two components listed above are not specifically addressed in this Policy due to the nature of their restrictions. The example of nonspendable fund balance is inventory. Restricted fund balance is either imposed by law or constrained by grantors, contributors, or laws or regulations of other governments. This Policy is focused on financial reporting of unrestricted fund balance, or the last three components listed above. These three components are further defined below.

The accounting policies of the Town consider restricted fund balance spent first when expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts of the unrestricted classifications of fund balance could be used, the Town considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.

Committed Fund Balance
The Town Council, as the Town’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal action taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose, unless the Town Council removes or changes the specific use through the same type of formal action taken to establish the commitment. The Town Council action to commit fund balance needs to occur within the fiscal reporting period; however, the amount can be determined subsequently at the final close of the fiscal year.

The Town currently sets aside funds into three four committed reserves to address unforeseen emergencies or disasters, significant changes in the economic environment, unfunded pension and Other Post-Employment Benefits (OPEB) obligations, and key infrastructure and capital projects. These include the Catastrophic Reserve, Budget Stabilization Reserve, and Pension (OPEB) Reserve. and Almond Grove Street Projects Reserve. The Town Council can commit other reserves by resolution.

ITEM NO. 6.

TITLE: General Fund Reserve Policy PAGE:
4 of 8
POLICY NUMBER:
4-03
Catastrophic Reserve
Funds reserved under this category shall be used to mitigate costs associated with unforeseen emergencies, such as a disaster or catastrophic event. Should unforeseen and unavoidable events occur that require the expenditure of Town resources beyond those provided for in the annual budget, the Town Manager or designee shall have authority to approve Catastrophic Reserve appropriations. The Town Manager or designee shall then present to the Town Council a budget amendment confirming the nature of the emergency and authorizing the appropriation of reserve funds. Reimbursements from the Federal Emergency Management Agency (FEMA) or other agencies shall be used to replenish the reserve.

The Town currently commits to maintaining this reserve at a minimum of 12.5% of General Fund ongoing operating expenditures (minus one-time and pass-through expenditures).

Should a catastrophic disaster occur, the required reserve level should be adequate to meet the Town’s immediate financial needs. For example, in the event of natural disaster, the Catastrophic Reserve would provide necessary coverage for basic operating expenses, including salary and benefits for safety and non-safety Town employees, while still meeting debt service obligations for approximately 60 days. This time frame would enable the Town to explore other available cash alternatives, including the use of internal service funds.

Budget Stabilization Reserve
Funds reserved under this category shall be used to mitigate annual revenue shortfalls (actual revenues less than projected revenues) due to changes in the economic environment and/or one-time uses that will result in future efficiencies and/or budgetary savings. Examples of “economic triggers” and one-time uses include, but are not limited to:
 An unplanned, major event such as a catastrophic disaster requiring expenditures which exceed the General Fund Catastrophic Reserve;
 Drop in projected/actual revenue of more than five percent in property or sales tax, or other economically sensitive revenues;
 Budgeted revenue taken over by another entity exceeding $100,000;  Loss of businesses considered to be significant sales tax generators;  Reductions or disruption in projected/actual revenue of more than five percent due to actions by the state/federal government which materially impact the Town’s ability to fund current operations;
 Workflow/technical system improvements to reduce ongoing, personnel costs and enhance customer service;
 One-time maintenance of service levels due to significant economic/budget constraints; and
 One-time transitional costs associated with organizational restructuring to secure longterm personnel cost savings.

ITEM NO. 6.

TITLE: General Fund Reserve Policy PAGE:
5 of 8
POLICY NUMBER:
4-03
The Town currently commits to maintaining this reserve at a minimum of 12.5% of General Fund ongoing operating expenditures, including salaries and benefits (minus one-time and passthrough expenditures).

Should a loss of the Town’s single highest source of sales tax revenue occur, the required reserve level should be adequate to meet the Town’s immediate financial needs. For example, the reserve level in the Budget Stabilization Fund would provide for an approximate 3-year transition period, giving the Town adequate time to realign its operating costs with available resources, while minimizing service impacts.

Pension/OPEB Reserve
Funds reserved under this category shall be used to further mitigate costs associated with pension and OPEB unfunded obligations. These funds will be used as a funding source for potential additional discretionary payments to pay down unfunded pension and other postemployment obligations, or held in the reserve account to be used as a supplemental funding source for unanticipated increases to the annual pension and other post-employment costs resulting from future actuarial assumptions and investment market volatility, which may impair the Town’s ability to continue existing operations.

This Policy requires the Town to set aside additional annual discretionary payments (ADPs) to reduce the effective amortization period of the Town’s pension unfunded actuarial liabilities from approximately 30 years to 20 years. To facilitate the implementation of this Policy, staff shall update the estimated unfunded amortization schedules in conjunction with the Town’s and CalPERS actuaries. This process will coincide with the annual proposed budget process to determine the additional annual discretionary payment levels required to maintain the goal of lowering the amortization period from a 30-year to a 20-year amortization period for all prior year actuarial bases through FY 18/19 2018-19. The ADP was is currently projected at $390,000 for FY 2018/-19 2018-19 (subject to annual updates provided by CalPERS actuaries). Per Council direction ADPs will either be allocated directly to CalPERS, the Town’s Pension IRS 115 Trust Fund, or the OPEB IRS 115 Trust Fund.

As part of the proposed budget for each forthcoming fiscal year, staff shall will strive to annually appropriate, to the extent possible, the amount of annual discretionary payments necessary to maintain the unfunded pension liability amortization shortening from 30 to 20 years.

In the event the annual amount required for additional discretionary payments is not available from operating revenues, the ADP shall be funded by a first lien on any one-time excess revenues above expenditures once other General Fund required reserve levels have been established at the appropriate levels as per the Town’s General Fund Reserve Policy. If in any given year neither budgetary appropriations or a first lien on one-time excess revenues are sufficient to fund the annual ADP, that years ADP will be accrued to the following year until paid.

ITEM NO. 6.

TITLE: General Fund Reserve Policy PAGE:
6 of 8
POLICY NUMBER:
4-03
Additionally, effective upon the close of fiscal year 2015/-16 and thereafter, if sufficient General Fund year-end savings are available and targeted reserve levels of 25% (12.5% for Catastrophic Reserve and 12.5% for Budget Stabilization Reserve) of the next fiscal year’s operating budget and the funding the following year’s proposed budget ADP have been met, upon final close of the fiscal year, a minimum of $300,000 annually shall be deposited into the Pension/OPEB Reserve fund. In addition, Council can assign additional amount deposited to the Pension/OPEB Reserve with a formal Council action from available year end savings.

Almond Grove Street Project Reserve
Funds reserved under this category shall be used to reconstruct the 10 streets identified in the Almond Grove Street Rehabilitation Project specification.

The Council awarded the bid in April 2017 allowing for $2.9 million savings within the project.

The Council reappropriated the use of the savings through the FY 2017/18 budget process. The Almond Grove Reserve should be reduced by the identified $2.9 million savings. The Almond Grove Street Reserve balance will be reduced at each fiscal year end by the funds expended on the Almond Grove Street Rehabilitation Project during the fiscal year.

Assigned Fund Balance
Amounts that are constrained by the Town’s intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. This Policy hereby delegates the authority to assign amounts to be used for specific purposes to the Town Manager, for the purpose of reporting to assign amounts in the annual financial statements, with annual ratification by the Town Council. A few examples of assigned fund balance follow.  Encumbrances – material s and services on purchase order and contracts which are unperformed.
 Reappropriations – appropriated by the Council for specific projects or programs that were not completed and not encumbered by year end.
 GASB 31 Adjustments – $10,000 or higher unrealized investment gains that have been recorded in the financial statements in accordance with GASB 31.

Capital and /Special Projects Reserve
Funds reserved under this category are designated for key infrastructure and capital/special projects as identified in the Town 5-year Capital Improvement Plan, as there is no ongoing funding source to support the Town’s capital needs.

Unassigned Fund Balance
At the end of each fiscal year, the Finance Department reports on the audited year-end budgetary fiscal results. Should actual General Fund revenues exceed expenditures and

ITEM NO. 6.

TITLE: General Fund Reserve Policy PAGE:
7 of 8
POLICY NUMBER:
4-03
encumbrances, a year-end operating surplus shall be reported. Any year-end surplus which results in the General Fund balance exceeding the level required by this Reserve Policy shall be available for allocation for the following, subject to Council approval:
 Offset projected future deficits
 Anticipated intergovernmental fiscal impacts
 One-time funding, non-recurring needs
This policy allows for Unassigned fund balances and places no specific restriction on their use.

The unassigned fund balance is established at goal is to maintain $4,000,000 with the FY 2025- 26 budget process to cover needs and support ongoing operations during the upcoming fiscal year. Use of unassigned fund balances must be approved by the Town Council.

Upon funding any of the above reserve levels pursuant to this General Fund Reserve Policy, any remaining surplus of fiscal year revenues above expenditures shall be placed in the Unassigned Fund Balance. Upon closing the fiscal year, the Council can reassigned portion of the Unassigned Fund Balance for Town liabilities or initiatives.

Upon funding any of the above reserve levels pursuant to this General Fund Reserve Policy, any remaining surplus of fiscal year revenues above expenditures shall be placed in the Capital/ and Special Projects Reserve for appropriation within the Capital Improvement Program budget.

Surplus Allocation Hierarchy
After funding carryforwards and legally restricted uses, year-end surpluses shall be allocated in the following order:

1. Catastrophic Reserve

2. Budget Stabilization Reserve

3. Pension/OPEB Reserve

4. Unassigned Fund Balance

5. Capital/Special Projects Reserve

6. Other Council-prioritized reserves
Replenishment of Unreserved Fund Balance Reserves
In keeping with the principles discussed in this Policy, when either fund is used, Town Council will develop a 1 to 5 year reserve replenishment plan to meet the minimum threshold of 25% of General Fund ongoing, operating expenditures, excluding one-time expenditures. Temporary exceptions to the minimum may be allowed for one fiscal year with an adopted restoration schedule.

ITEM NO. 6.

TITLE: General Fund Reserve Policy PAGE:
8 of 8
POLICY NUMBER:
4-03
APPROVED AS TO FORM:
_________
Gabrielle Whelan, Town Attorney

ITEM NO. 6.

RESOLUTION 2025- 030

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS APPROVING COMMITMENTS OF FUND BALANCE UNDER GASB 54
WHEREAS, the Governmental Accounting Standards Board ( GASB) has issued its Statement No. 54, Fund Balance and Governmental Fund Type Definitions with the intent of improving financial reporting by providing fund balance categories that will be more easily understood and to improve the comparability of governmental fund financial statements; and WHEREAS, GASB 54 provides that the Town Council of the Town of Los Gatos classify governmental fund balances as restricted, assigned, or committed fund balances; and WHEREAS GASB 54 provides that restricted reserves are funds that are restricted for externally imposed constraints such as legal contracts or state law, assigned amounts are constrained by the Town' s intent to use them for specific purposes, and committed amounts are dedicated for specific purposes under constraints and formal action taken by the Town Council and these committed amounts cannot be used for any other purposes unless the Town Council ofthe Town of Los Gatos removes or changes the specific use through the same formal action to establish the commitment; and
WHEREAS, there exists a Restricted General Fund Pension Reserve in the form of an IRS 115 Pension Trust; and
WHEREAS, there exists a balance of $2, 878, 659 as of June 30, 2025 in the restricted Pension Reserve; and
WHEREAS, the Town Council of the Town of Los Gatos has established a General Fund Reserve Policy providing for minimum fund balance dollar target amounts for Budget Stabilization and Catastrophic Reserve fund balances and outlines policies and procedures for use and restoration of these balances; and
1of5
Resolution 2025- 30 June 3, 2025
ATTACHMENT 2

ITEM NO. 6.

WHEREAS, there exists an assigned General Fund Compensated Absences Reserve allocated to fund 50% of all vested hours of sick leave, compensation, and vacation time with the actual reserve amount to be determined at the close of FY 2024-25; and WHEREAS, there exists an assigned Capital/ Special Projects Reserve to fund key infrastructure and capital/ special projects as identified in the Town' s five- year Capital Improvement Plan, and/ or other Council priorities; and WHEREAS, there exists an assigned authorized Carry Forward Reserve for materials and services on approved purchase order and contracts which were issued but not finalized or fulfilled as of the end of the fiscal year but for which funds will be carried forward to the following fiscal year. Actual reserve balance will be established at the close of FY 2024- 25; and WHEREAS, in June 2016, the Town Council established the committed Pension/ OPEB Reserve to provide funding toward pension and Other Post -Employment Benefits ( OPEB) unfunded obligations by placing discretionary amounts to the reserve with formal Council action and transferring available year- end surpluses based on the General Fund Reserve Policy; and WHEREAS, there is an anticipated excess balance of $1, 000,000 as of June 30, 2025 in the assigned OPEB/ Pension Reserve, and
WHEREAS, The Town Council established the assigned Sustainability Reserve in FY 2008- 09 by closing the Solid Waste Management fund and placing the initial residual balance dedicated for conservation, recycling, and sustainability; and WHEREAS, there exists an excess balance of $ 140,553 as of June 30, 2025 in the assigned Sustainability Reserve; and
WHEREAS, there exists an assigned Market Fluctuation Reserve that represents fund balance amounts for unrealized investment gains that have been recorded as investment income in the financial statements in accordance with the requirements of GASB 31, actual reserve balance will be established at the close of FY 2025- 26; and WHEREAS, there exists an assigned Measure G 2018 District Sales Tax Reserve to track receipt and use of the 1/ 8 cent district tax funds collected by the Town; and 2of5
Resolution 2025- 30 June 3, 2025

ITEM NO. 6.

WHEREAS, the Town Council has determined the use of Measure G accumulated and future proceeds to be 50% for operating expenditures and 50% for capital purposes until the end of FY 2024- 25; and
WHEREAS, the Town Council has determined the use of 100% of the Measure G estimated proceeds from FY 2025- 26 will go towards operating expenditures; and WHEREAS, the Town Council will determine the use of Measure G beyond FY 2026- 27 after the completion of the external review of the Five -Year Forecast and a comprehensive Fiscal Impact Analysis, and
WHEREAS, the committed residual balance of $ 590, 581 that was set aside for operating purposes in FY 2020- 21 was programmed to be used for operating expenses in FY 2024- 25 if needed; and
WHEREAS, the portion of the committed residual balance of $590,581 not used for operating expenses in FY 2024- 25, will be placed in the Unassigned Fund Balance, and WHEREAS, with the adoption of the Fiscal Year 2023- 24 Budget, an assigned Education Realignment Augmentation Fund ( ERAF) Risk Reserve has been established, reserving the 30% of the anticipated ERAF proceeds from FY 2022- 23 until a lawsuit between the State and the School Districts concludes; and
WHEREAS, an excess balance of the ERAF RISK Reserve will be moved to the Unassigned Fund Balance during FY 2024- 25, and
WHEREAS, there exists an excess balance of $4, 000, 000 as of June 30, 2025 in the Unassigned Fund Balance, moving available funds from the available Capital/ Special Projects Reserve, and
WHEREAS, the FY 2025- 26 budget anticipates using $ 905, 060 of the General Fund Unassigned Fund Balance to balance the budget; and
WHEREAS, there exists an excess balance of $3, 094, 940 as of June 30, 2026 in the Unassigned Fund Balance, final balances will be determined at the close of the FY 2025- 26 fiscal year, and
3of5
Resolution 2025- 30 June 3, 2025

ITEM NO. 6.

WHEREAS, the Town Council established the assigned Open Space reserve in the FY 1998- 99 to be used for the preservation of open space, connection of open space trails, the definition of the southern boundary of the Town with passive open space, and protection of unique natural features; and
WHEREAS, there exists an excess balance of $410, 000 as of June 30, 2025 in the assigned Open Space Reserve; and

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY RESOLVE that the following estimated Pension, Budget Stabilization, Catastrophic, Pension/ OPEB, Capital/ Special Projects, Compensated Absences; Measure G District Sales Tax, Surplus Property Revenue, Market Fluctuations, Sustainability, Open Space, and Unassigned Fund Balance as of June 30, 2025 and as of June 30, 2026 as restricted, assigned, unassigned or formally committed as follows:

Actual FY 2024- 25 FY 2024-25 Estimated FY 2025- 26 FY 2025- 26 Estimated General Fund Budget, GF Budget, GF General Fund Budget Budget General Fund Reserves Reserve Policy, Reserve Reserves Resolution Resolution Reserves June 30, 2024 and this Policy, and June 30, 2025 Approved Approved June 30, 2026 Resolution this Increase Decrease)
Approved Resolution
Increase Approved
Decrease)
Restricted Fund Balances
Pension 2, 188, 659 690, 000 2, 878, 659 390,000 3, 268, 659 Porperty Held for Resale 344, 338 344, 338)
Nonspendable
Rehab Loan Reserve ( Nonspendable) 159, 000 159, 000 159, 000 Committed Fund Balances
Budget Stabilization 6, 736, 781 1, 133, 858 7, 870,639 7, 870, 639 Catastrophic 6, 736, 781 1, 133, 858 7, 870, 639 7,870, 639 Pension/ OPEB 300, 000 1, 000, 000 300,000) 1, 000, 000 1, 000, 000 Measure G District Sale Tax - Operating S90, 581 590, 581) Assigned Fund Balances
Capital/ Special Projects 8, 651, 056 7, 144, 607) 1, 506,449 1, 506, 449 Compensated Absences 1, 555, 478 1, 555, 478 1, 555, 478 Open Space 410, 000 410, 000 410, 000
Sustainability 140, 553 140, 553 140, 553
Market Fluctuations 1, 712, 246 1, 712, 246 1, 712, 246 Carryover Encumbrances 85, 861 85, 861 85, 861
Council Priorities - Economic Recovery 20, 684 20, 684) ERAP Risk Reserve 1, 430, 054 1, 430, OS4)
Unassigned Fund Balance 4, 000, 000 4, 000, 000 905, 060) 3, 094, 940 4of5
Resolution 2025- 30 June 3, 2025

ITEM NO. 6.

PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos held on the 3rd day of June 2025 by the following vote:

COUNCIL MEMBERS
AYES: Maria Ristow, Rob Rennie, Rob Moore, Mary Badame, Mayor Matthew Hudes NAYS: None
ABSENT: None
ABSTAIN: None
SIGNED:

MAYOR OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
ATTEST:

P

TOWN CLE OF THE TOWN OF LOS GATOS

LOS GATOS, CALIFORNIA
5of5
Resolution 2025- 30 June 3, 2025

ITEM NO. 6.

Item #7 has been removed.

ITEM NO. 7.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/04/25
ITEM NO: 8
DATE: November 4, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Second Amendment to the Agreement for Services with OpenGov, Inc., Revising the Scope of Work at No Additional Cost
RECOMMENDATION: Authorize the Town Manager to execute a second amendment to the Agreement for Services with OpenGov, Inc. (Attachment 1), revising the Scope of Work at no additional cost.

FISCAL IMPACT:

This action has no fiscal impact. The amendment reallocates resources between tasks within existing appropriations in the Adopted 2025-26 Operating Budget for Parks and Public Works Administration Program (5101-63332) and Information Technology (2501-63332).

STRATEGIC PRIORITY:

This action supports the Town’s strategic priority of Fiscal Stability. Town Staff is working with OpenGov software to create more efficient and streamlined processes for bidding and contract management.

BACKGROUND:

On November 21, 2023, the Town Council approved the purchase and implementation of OpenGov’s Procurement Suite. Parks and Public Works (PPW) proposed this implementation to achieve efficiency and consistency regarding procurement and contract management. The system provides centralized document management with automatic reminders and the ability to track spending, insurance, and change requests. PPW has been using OpenGov software for

ITEM NO. 8.

PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute a Second Amendment to the Agreement for Services with OpenGov, Inc.

DATE: October 22, 2025
more than 20 years for work order and asset management, and the addition of the procurement suite ensures continuity among vendors. This agreement expired on December 29, 2024.

On November 19, 2024, the Town Council approved a new agreement with OpenGov Inc. that brought the Enterprise Asset Management and Procurement modules under one contract effective, December 30, 2024, through December 29, 2025, for a total agreement amount of $66,355.59 with four one-year options thereafter (pending budget appropriation and extension of the agreement).

On May 20, 2025, the Town Council approved the First Amendment to the Agreement for Services with OpenGov, Inc. for a Request Management and eSignature Add-On to support the existing enterprise asset management and procurement system services in an amount of $11,448.72 for a total agreement amount not to exceed $77,804.31.

On October 7, 2025, a Second Amendment was taken to the Town Council for approval but was not executed because the proposal from OpenGov incorrectly listed “Procurement Expert Services: Elevate” instead of “Professional Services” as the service that would replace the “Request Management” services previously contracted for. This error prevented the Town from finalizing the amendment and initiating services under that version.

DISCUSSION
The revised Second Amendment (Attachment 1) incorporates the updated OpenGov Proposal, Exhibit B, which correctly identifies the services to replace the previously contracted Request Management Services as Professional Services Deployment – Time and Materials and Prepaid.

The scope provides custom deployment assistance by the OpenGov Professional Services team to support Town-wide implementation of Procurement modules and streamlined workflow configuration.

No additional costs are incurred under this amendment; it merely revises the former proposal with a more accurate scope of work while maintaining the total agreement amount not to exceed $77,804.31.

Execution of this updated Second Amendment will enable Town staff to proceed with software deployment and training per the correct service type and align the agreement records with vendor documentation.

CONCLUSION:

Approval of this action corrects the vendor documentation error and authorizes execution of a revised Second Amendment that accurately reflects the Professional Services scope without

ITEM NO. 8.

PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute a Second Amendment to the Agreement for Services with OpenGov, Inc.

DATE: October 22, 2025
budget impact and will accelerate implementation of the full procurement module across all departments, reducing risk in contract administration.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Second Amendment for Services with Exhibit C – OpenGov

2. First Amendment to Agreement with Exhibit B - OpenGov

3. Original Agreement with OpenGov

ITEM NO. 8.

AMENDMENT TO AGREEMENT FOR SERVICES

PREAMBLE
This Second Amendment to Agreement for Services is dated for identification on this 22nd day of October 2025, and amends that certain Agreement for Services dated November 19, 2024, and amended by the First Amendment dated April 15, 2025, made by and between the Town of Los Gatos (“Town”) and OpenGov, Inc. (“Service Provider”), identified as a C Corporation and whose address is 660 3rd Street, Suite 100, San Francisco, CA 94107.

I. RECITALS
A. Town and Consultant entered into Agreement for Services on November 19, 2024 (“Agreement”).

B. Town and Consultant executed a First Amendment to the Agreement on April 15, 2025 (“First Amendment”).

C. Town desires to amend the Agreement to revise the scope of services without increasing the compensation of the Agreement.

II. AMENDMENT

1. Section 2.1 Scope of Services is amended to add the following:

Service Provider shall provide services as described in that certain Proposal/Order Form Number Q-11947.2 dated October 17, 2025, which is hereby incorporated by reference and attached as Exhibit C and replaces and supersedes the prior Exhibit B Order Form Number Q-07800 executed May 29, 2025, as amended.

2. Section 2.6 Compensation is to be replaced in its entirety with the following:

Compensation for services for the dates December 30, 2024, to December 29, 2025, shall be the original agreement amount of $66,355.59, increased by $11,448.72 pursuant to the First Amendment, for a total agreement amount not to exceed $77,804.31. No additional compensation is authorized by this Second Amendment.

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

ITEM NO. 8.

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

Town of Los Gatos by:
__________________________________
Chris Constantin, Town Manager
OpenGov, Inc. by:
__________________________________
Sam Kramer, Chief Finance Officer
Recommended by:
__________________________________
Nicolle Burnham,
Director of Parks and Public Works
Approved as to Form:
__________________________________
Gabrielle Whelan, Town Attorney

EXHIBITS
Exhibit C – Proposal/Order Form Q-11947.2 dated October 17, 2025

ITEM NO. 8.

OpenGov Inc.
660 3rd Street, Suite 100
San Francisco, CA 94107
United States
Order Form Number: Q-11947.2 Prepared By: Julian Jackson Created On: 10/17/2025 Email: [email protected]
Order Form Expiration: 11/16/2025 Contract Term: 7 Months Subscription Start Date: 05/30/2025
Subscription End Date: 12/29/2029
Customer Information:

Customer: Town of Los Gatos, CA Contact Name: Kinjal Buch Bill To/Ship To: 110 E. Main St Email: [email protected] Los Gatos, California Phone: 4083995756
95030
United States
Order Details:

Billing Frequency:

Payment Terms: Net 30 Days
SOFTWARE SERVICES:

Product Name Start Date End Date Annual Fee
Contract eSignatures 05/30/2025 12/29/2025 $432.18
PROFESSIONAL SERVICES:

Product Name Start Date Description Fee
Professional Services
Deployment – Time and
Materials Billed Monthly
as Incurred
05/30/2025 Custom Deployment from OpenGov Professional Services team.

Scope-dependent. $6,696.00
Professional Services
Deployment - Prepaid 05/30/2025 Custom Deployment from OpenGov Professional Services team. Scope-dependent. $4,320.54 Professional Services Total: $11,016.54
Customer Billing/Service Periods:

EXHIBIT C Page 104
ITEM NO. 8.

Period: Total:
05/30/2025 $11,448.72 Previously Paid against
INV21234
Order Form Legal Terms:

This Order Form replaces and supersedes the Order Form Number Q-07800 executed on 5/29/2025.

This Order Form incorporates the OpenGov Master Services Agreement ("MSA") attached here or available at https://opengov.com/terms-of-service/master-services-agreement/.

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

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

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

Signature:
____________________________
Signature:
____________________________
Name:
____________________________
Name:
____________________________
Title:
____________________________
Title:
____________________________
Date:
____________________________
Date:
____________________________

ITEM NO. 8.

Docusign Envelope ID: 78D8379A-447E-4A97-BE19-823F0C5086BD

FIRST AMENDMENT TO AGREEMENT

PREAMBLE
This First Amendment to Agreement for Services is dated for identification on this 15th day of April 2025, and amends that certain Agreement for Services dated November 19, 2024, made by and between the Town of Los Gatos, {"Town,") and the OpenGov, Inc. ("Service Provider") identified as an C Corporation and whose address is 660 3rd Street, Suite 100 San Francisco CA 94107.

I. RECITALS
A. Town and Consultant entered into Agreement for Services Agreement on November 19, 2024, ("Agreement"), a copy of which is attached hereto and incorporated by reference as Exhibit A to this Agreement.

B. Town desires to amend the Agreement to add to the scope of services and to increase the compensation of the Agreement.

II. AMENDMENT

1. 2.1 Scope of Services is amended to add the following:

Service Provider shall provide services as described in that certain Proposal dated May 2, 2025, which is hereby incorporated by reference and attached as Exhibit B.

2. 2.6 Compensation is to be replaced in its entirety with the following:

Compensation for services for the dates December 30, 2024 to December 29, 2025 shall be the original agreement amount of $66,355.59, increased by $11,448.72 for an agreement amount not to exceed $77,804.31. All invoice amounts, including exercised option years (pending budget appropriation and extension of the agreement) shall be invoiced in the amounts further described in the applicable Order Form {"Exhibit A and B").

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

First Amendment to Agreement for Services
OpenGov, Inc.

ATTACHMENT 2

ITEM NO. 8.

Docusign Envelope ID: 78D8379A-447E-4A97-BE19-823F0C5086BD IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.

Town of Los Gatos by:

If Signed by:
��F�0r�;t�� 5/29/2025
OpenGov, Inc. by:
043308530DE4424 ...
5/23/2025
Chris Constantin, Town Manager Joe Lane, Sr. Director, Finance & Strategy Recommended by:

Nicolle Burnham,
Director of Parks and Public Works
Approved as to Form:

Gabrielle Whelan, Town Attorney
Attest:

Wendy Wood, CMC, Town Clerk
First Amendment to Agreement for Services
OpenGov, Inc.
5/27/2025
5/28/2025
5/29/2025

ITEM NO. 8.

OpenGov Inc.
660 3rd Street, Suite 100
San Francisco, CA 94107
United States
Order Form Number: Q-07800 Prepared By: Jonathan Stone
Created On: 05/02/2025 Email: [email protected]
Order Form Expiration: 05/23/2025 Contract Term: 55 Months Subscription Start Date: 05/30/2025
Subscription End Date: 12/29/2029
Customer Information:

Customer: Town of Los Gatos, CA Contact Name: Kinjal Buch Bill To/Ship To: 110 E. Main St Email: [email protected] Los Gatos, California Phone: +1 4083995756
95030
United States
Order Details:

Billing Frequency: Upfront
Payment Terms: Net 30 Days
SOFTWARE SERVICES:

Product Name Start Date End Date Annual Fee
Contract eSignatures 05/30/2025 12/29/2025 $432.18
Request Management 05/30/2025 12/29/2025 $4,320.54
Contract eSignatures 12/30/2025 12/29/2026 $777.92
Request Management 12/30/2025 12/29/2026 $7,776.97
Contract eSignatures 12/30/2026 12/29/2027 $816.82
Request Management 12/30/2026 12/29/2027 $8,165.81
Contract eSignatures 12/30/2027 12/29/2028 $857.66

EXHIBIT B
Docusign Envelope ID: 78D8379A-447E-4A97-BE19-823F0C5086BD

ITEM NO. 8.

Request Management 12/30/2027 12/29/2028 $8,574.11
Contract eSignatures 12/30/2028 12/29/2029 $900.54
Request Management 12/30/2028 12/29/2029 $9,002.81
PROFESSIONAL SERVICES:

Product Name Start Date Description Fee
Professional Services
Deployment - Time and
Materials Billed Monthly
as Incurred
05/30/2025 Professional Services Deployment - Estimated Time and Materials Billed Monthly as Incurred $6,696.00
Professional Services Total: $6,696.00
Customer Billing/Service Periods:

Period: Total:
05/30/2025 $11,448.72
12/30/2025 $8,554.89
12/30/2026 $8,982.63
12/30/2027 $9,431.77
12/30/2028 $9,903.35
Order Form Legal Terms:

This Order Form incorporates the Agreement for Services between the parties dated November 19, 2024.

The "Agreement" consists of the Order Form(s), Agreement for Services, and, if Professional Services are purchased, the Statement of Work.

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

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

Hours will be billed upon completion on a time and material basis at a rate of $215.00 per hour. Actual charges may exceed the provided estimate under Time and Materials billing, The final amount billed will reflect the actual hours utilized.

Docusign Envelope ID: 78D8379A-447E-4A97-BE19-823F0C5086BD

ITEM NO. 8.

Town of Los Gatos, CA: OpenGov, Inc.

Signature:
____________________________
Signature:
____________________________
Name:
____________________________
Name:
____________________________
Title:
____________________________
Title:
____________________________
Date:
____________________________
Date:
____________________________
Docusign Envelope ID: 78D8379A-447E-4A97-BE19-823F0C5086BD

ITEM NO. 8.

Agreement for Services
OpenGov, Inc.

AGREEMENT FOR SERVICES

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

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

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

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

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

II. AGREEMENTS

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

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

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

2.5 Intentionally Omitted.

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

Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60 ATTACHMENT 3

ITEM NO. 8.

Agreement for Services
OpenGov, Inc.

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

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

Invoices:

Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
Email (preferred): [email protected]

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

2.9 Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Service Provider. No portion of these services shall be assigned or subcontracted without the written consent of the Town, which shall not be unreasonably withheld.

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

2.11 Conflict of Interest. Service Provider understands that its professional responsibilities are solely to the Town. The Service Provider has and shall not obtain any holding or interest within the Town of Los Gatos. Service Provider has no business holdings or agreements with any individual member of the Staff or management of the Town or its representatives nor shall it enter into any such holdings or agreements. In addition, Service Provider warrants that it does not presently and shall not acquire any direct or indirect interest adverse to those of the Town in the subject of this Agreement, and it shall immediately disassociate itself from such an Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60

ITEM NO. 8.

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

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

III. INSURANCE AND INDEMNIFICATION

3.1 Minimum Scope of Insurance:
i. Service Provider agrees to have and maintain, for the duration of the contract, General Liability insurance policies in an amount not less than: two million dollars ($2,000,000) combined single limit per occurrence for bodily injury, personal injury and property damage.
ii. Service Provider agrees to have and maintain, for the duration of the contract, Cyber Liability insurance for limits no less than $2,000,000 per occurrence or claim, and $4,000,000 in the aggregate.
 Coverage shall be sufficiently broad to respond to the duties and obligations undertaken by Consultant in this contract.
 The policy(ies) shall include coverage for claims involving security breach, business interruption, cyber extortion, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, and damage to or destruction of electronic information.
 The policy(ies) shall provide coverage for breach response costs as well as regulatory fines and penalties as well as credit monitoring expenses with limits sufficient to respond to these obligations.
iii. Service Provider agrees to have and maintain, for the duration of the contract, Technology Errors and Omissions Liability insurance in an amount of $2,000,000 per occurrence or claim, and $4,000,000 in the aggregate sufficient to Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60

ITEM NO. 8.

Agreement for Services
OpenGov, Inc.
insure Consultant for technological errors or omissions in the performance of the particular scope of work under this contract.
iv. Service Provider shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Service Provider agrees that all certificates and endorsements are to be received and approved by the Town before work commences.

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

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

3.4 Workers’ Compensation. In addition to these policies, Service Provider shall have and maintain Workers' Compensation insurance as required by California law and shall provide evidence of such policy to the Town before beginning services under this Agreement. Further, Service Provider shall ensure that all subcontractors employed by Service Provider provide the required Workers' Compensation insurance for their respective employees. As required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than one million dollars ($1,000,000) per accident for bodily injury or disease.

3.5 Indemnification. The Service Provider shall save, keep, hold harmless and indemnify and defend the Town its elected and appointed officials, agents, and employees (“Indemnitees") from all third party claims for damages, liabilities, penalties, costs, or expenses (including attorneys’ fees) in law or equity that may at any time arise or be set up because of damages to Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60

ITEM NO. 8.

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

IV. GENERAL TERMS

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

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

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

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

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

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

Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
OpenGov, Inc.
660 3rd Street, Suite 100
San Francisco CA 94107
or personally delivered to Service Provider to such address or such other address as Service Provider designates in writing to Town.

4.7 Order of Precedence. In the event of any conflict, contradiction, or ambiguity between the terms and conditions of this Agreement in respect of the Products or Services and any Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60

ITEM NO. 8.

Agreement for Services
OpenGov, Inc.
attachments to this Agreement, then the terms and conditions of this Agreement shall prevail over attachments or other writings.

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

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

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

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

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

Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60

ITEM NO. 8.

Agreement for Services
OpenGov, Inc.

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

Town of Los Gatos by:
________________________________________
Chris Constantin, Town Manager
OpenGov, Inc. by:
________________________________________
Sam Kramer, SVP of Finance
Recommended by:
________________________________________
Nicolle Burnham,
Director of Parks and Public Works
Approved as to Form:
________________________________________
Gabrielle Whelan, Town Attorney
Attest:
________________________________________
Wendy Wood, CMC, Town Clerk
Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60 11/27/2024
12/2/2024
12/4/2024
12/6/2024
12/6/2024

ITEM NO. 8.

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

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

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

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

Signature: Signature:

Name: Name:

Title: Title:

Date: Date:

Order Form Number:

Created On: Prepared By:

Order Form Expiration: Email:

Subscription Start Date: Contract Term:

Subscription End Date:

Customer: Contact Name:

Bill To/Ship To: Email:

Billing Frequency:

Payment Terms:

SOFTWARE SERVICES:

Annual Subscription Total:

Serivce Terms
Service Date: Amount:

Town of Los Gatos, CA OpenGov, Inc.

Customer Information
Order Details
Order Form Legal Terms
PRORATED TO ALIGN TO 12/30/2024
ONE TIME CREDIT FOR PRORATED PERIOD ($2,916.67)
(Prorated to Align to 12/30/2024 + One Time Credit for Prorated Period) (Annual Software Fee)
(Optional Auto Renewal Term 1)
(Optional Auto Renewal Term 2)
(Optional Auto Renewal Term 3)
(Optional Auto Renewal Term 4)
Exhibit A
Docusign Envelope ID: 62AD5440-B646-4767-A09C-5773DE0D0C60

ITEM NO. 8.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/04/2025
ITEM NO: 9
DATE: October 23, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Accept Grant Funding from the Town’s Citizens Option for Public Safety/Supplemental Law Enforcement Services Fund (COPS/SLESF) and Authorize Revenue and Expenditure Adjustments in the Amount of $11,850 to Reflect a Decrease in FY 2025-26 COPS SLESF Grant Program funding Revenue Received from the City of Monte Sereno
RECOMMENDATION: Accept grant funding from the Town’s Citizens Option for Public Safety/Supplemental Law Enforcement Services Fund (COPS/SLESF) and authorize revenue and expenditure budget adjustments in the amount of $11,850 to reflect a decrease in FY 2025-26 COPS SLESF Grant Program funding revenue received from the City of Monte Sereno.

FISCAL IMPACT:

If Council approves the proposed recommendation, the Town will continue to receive the Citizen Option for Police Safety Supplemental Law Enforcement Services grant funding. The allocation of all SLESF funds received and expensed will be maintained in the FY 2025-26 Police Department Operating Budget COPS SLESF Grant Program “1114818,” with a corresponding revenue and expenditure line to manage the funds. Per contract stipulation with the City of Monte Sereno, a portion ($71,850) of the $100,000 of SLESF funds was used by Monte Sereno as a one-time payment for the installation and implementation of Flock Safety cameras in FY 2025-26. At the time of preparing the FY 2025-26 Budget, staff anticipated receiving $40,000 SLESF funds from the City of Monte Sereno; the actual amount received will be $28,150, a variance of $11,850. The remaining balance ($28,150) of Monte Sereno’s total annual SLESF funds will be directed to the Town of Los Gatos. The Town will also receive a separate allocation of $100,000 in SLESF funding.

ITEM NO. 9.

PAGE 2 OF 3
SUBJECT: Accept grant funding from the Town’s Citizens Option for Public Safety/Supplemental Law Enforcement Services Fund (COPS/SLESF) and authorize revenue and expenditure adjustments and allocations for Fiscal Year 2025-26 DATE: October 23, 2025
In addition, staff will make appropriate transfers within the FY 2025-26 Police Department Operating Budget to reflect the proposed allocation of SLESF funding during this fiscal year.

STRATEGIC PRIORITY:

This item aligns with the Town’s core goal of fiscal stability to identify and utilize additional funding opportunities to continue core services by leveraging the COPS SLESF Grant Program to supplement front-line personnel with training and equipment. The focus of the COPS SLESF grant is to focus on the continual support of front-line services, which aligns with the Town’s core goal of public safety.

BACKGROUND:

In 1996, California legislation (Assembly Bill 3229) created the Citizens Options for Public Safety (COPS) program, allocating $100,000,000 to local governments yearly for front-line law enforcement. These funds are to be distributed through an established local Supplemental Law Enforcement Services Fund (SLESF).

State General Fund distribution to local law enforcement agencies is specifically intended for “front-line municipal police services.” COPS funds must be spent on personnel, equipment, or supplies and are not approved for public safety capital improvement or construction projects.

Other COPS funds requirements and restrictions include:
 COPS funds shall be used to supplement, not supplant existing funding for law enforcement services.
 COPS funds will be accounted for separately from other department funding.  The Town Council shall approve the appropriation of COPS funds, which authorizes that such funds can be expended by staff.

The current grant program allocates a recurring annual amount of $100,000 for front-line law enforcement operations and equipment for the Town of Los Gatos. After the initial disbursement of funds to participating jurisdictions, any additional growth funds are distributed by the County of Santa Clara to participating jurisdictions.

In addition, pursuant to AB 3229, the City of Monte Sereno also receives a share of the state SLESF funds ($100,000). Pursuant to the 5-Year Monte Sereno Police Services Agreement approved by the Town Council on April 15, 2025 (Effective July 1, 2025), a portion of the 2025 distribution of Monte Sereno COPS SLESF funding will be retained by the City of Monte Sereno for the initial implementation and installation of Flock Safety cameras. The remaining balance of FY 2025-26 SLESF funds for the City of Monte Sereno will be redistributed to the Town of Los Gatos for frontline law enforcement services.

ITEM NO. 9.

PAGE 3 OF 3
SUBJECT: Accept grant funding from the Town’s Citizens Option for Public Safety/Supplemental Law Enforcement Services Fund (COPS/SLESF) and authorize revenue and expenditure adjustments and allocations for Fiscal Year 2025-26 DATE: October 23, 2025
On January 21, 2025, the Monte Sereno City Council approved the use of $71,850 of COPS SLESF funding to be used for one-time installation and implementation of Flock Safety cameras, in accordance with the renegotiation of the Monte Sereno Police Services Agreement.

DISCUSSION:

This report recommends the use of SLESF funds continue in the spirit of the COPS program.

Staff recommends FY 2025-26 acceptance approval and allocation of SLESF funds to Grant Program “1114818.” With the anticipated integration and implementation of advanced technology systems, such as Axon ISLE 10+ Ecosystem, the Police Department proposes utilizing FY 2025-26 SLESF funding for the following purposes:
 Town of Los Gatos FY 2025-26 SLESF Funds ($100,000):
o Staff will allocate approximately 50% ($50,000) of the Town’s portion of FY 2025- 26 SLESF grant funding to provide supplemental training, implementation, and deployment of Axon ISLE 10+ Ecosystem, Axon Fusus, and the Police Department’s Drone-First Responder Program.
o Funds remaining in FY 2025-26 ($50,000) will be directed to purchase equipment for technology integration specific to crime prevention, real-time crime center operations, and investigation management. This includes hardware, software, applications, and possibly subscription services that enhance operational efficiency, improve communication, and incorporate data analysis.  City of Monte Sereno FY 2025-26 SLESF Funds ($100,000) o Per the 2025 Monte Sereno Police Services Agreement, effective July 1, 2025, the City of Monte Sereno will redirect $71,850 of the $100,000 COPS SLESF Grant disbursement to Flock Safety for a one-time initial installation and implementation payment.
o The Police Department will allocate approximately $25,000 of the remaining FY 2025-26 SLESF funds ($28,150) from the City of Monte Sereno to supplement the annual increase to Year 1 of the Axon Enterprises, Inc., 10-year services agreement.

ENVIRONMENTAL ASSESSMENT:

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

ITEM NO. 9.

PREPARED BY: Robert Gray
Chief Building Official
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Finance Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/04/2025
ITEM NO: 10
DATE: October 31, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Adopt a Resolution To Confirm the Town’s Policy in Support of Greenhouse Gas Reduction and Introduce an Ordinance, by Title Only, Repealing Chapter 6, “Building Regulations,” and Chapter 9, “Fire Prevention and Protection,” of the Town of Los Gatos Municipal Code, and Replacing Them with a New Chapter 6, “Building Codes and Regulations,” that Includes the New 2025 California Building, Fire, and Reach Codes as Amended. Amendments Include Updated Fire Safety Requirements in Wildland Urban Interface Areas for New, Renovated, or Repaired Structures, as well as Reach Codes Affecting Air Conditioning Replacement and Electrical Readiness in Renovations/Alterations. Alternatively, introduce an Ordinance without the Reach Code provisions. Town Code Amendment Application A-25-005.

Project Location: Town Wide. Applicant: Town of Los Gatos.

Ordinance Titles: An Ordinance of the Town Council of the Town of Los Gatos Repealing Chapter 6, “Building Regulations,” and Chapter 9, “Fire Prevention and Protection,” and Replacing Them with a New Chapter 6, “Building Codes and Regulations,” that Includes the New 2025 California Building, Fire, and Reach Codes, as Amended; or
An Ordinance of the Town Council of the Town of Los Gatos Repealing Chapter 6, “Building Regulations,” and Chapter 9, “Fire Prevention and Protection,” and Replacing Them with a New Chapter 6, “Building Codes and Regulations,” that Includes the New 2025 California Building and Fire Codes as Amended. Amendments Include Updated Fire Safety Requirements in Wildland Urban Interface Areas for New, Renovated, or Repaired Structures.

ITEM NO. 10.

PAGE 2 OF 6
SUBJECT: Town of Los Gatos Amendments to the Building and Fire Codes DATE: October 31, 2025
RECOMMENDATION:

Staff recommends the Town Council consider and take one of the following actions, depending on Council policy direction. Each option ensures compliance with the State’s 2025 Building Standards Code adoption requirements while addressing greenhouse gas reduction and public safety priorities:

Option 1 – Core Update with Reach Codes: Adopt a Resolution (Attachment 1) confirming Town policy on greenhouse gas emissions reduction; and introduce an Ordinance (Attachment 2), by title only, repealing Chapter 6, Building Regulations, and Chapter 9, Fire Prevention and Protection, of the Town Code, and replacing them with a new Chapter 6, Building Codes and Regulations, that includes the new 2025 California Building, Fire, and Reach Codes as amended. Amendments include updated fire safety requirements in Wildland Urban Interface (WUI) areas for new, renovated, or repaired structures, as well as Reach Codes addressing Air Conditioning replacement (AC to Heat Pump) and Electrical Readiness.

Option 2 – Core Update Only (No Reach Codes): Introduce an Ordinance (Attachment 4), by title only, repealing Chapter 6, Building Regulations, and Chapter 9, Fire Prevention and Protection, of the Town Code, and replacing them with a new Chapter 6, Building Codes and Regulations, that includes the new 2025 California Building and Fire Codes as amended. Amendments include updated fire safety requirements in Wildland Urban Interface (WUI) areas for new, renovated, or repaired structures, but do not include Reach Codes.

FISCAL IMPACT:

There is no fiscal impact associated with the introduction of either ordinance or adoption of the accompanying resolution. Any minor implementation costs can be accommodated within existing Building Division resources and permit fee structures.

STRATEGIC PRIORITY:

This project supports the Town’s Core Goal of Public Safety and the Strategic Priority to enhance emergency preparedness, resiliency, and response capabilities, particularly with respect to wildfire risk and climate adaptation.

BACKGROUND:

California Building Standards Code
The California Building Standards Commission (CBSC) adopts a new edition of the California Building Standards Code (Title 24) every three years. The new 2025 State Code was published in July 2025 and becomes effective statewide on January 1, 2026. Local jurisdictions are required

ITEM NO. 10.

PAGE 3 OF 6
SUBJECT: Town of Los Gatos Amendments to the Building and Fire Codes DATE: October 31, 2025
to adopt and enforce the updated codes and may make local amendments that are more restrictive if justified by local climatic, geological, geographical, or topographical conditions that affect public health, safety, and welfare. Following local adoption, such amendments must be filed with the CBSC and, where applicable, the California Energy Commission (CEC). The amendments become operative when the CBSC and CEC provide written confirmation of acceptance.

Recent State Legislation
Assembly Bill (AB) 306, introduced in January 2025, sought to pause residential building code changes due to rebuilding challenges following Southern California wildfires. AB 130, enacted June 30, 2025, incorporated portions of AB 306 and added temporary restrictions on local amendments to the State Code for residential development from October 1, 2025, through June 1, 2031. Limited exceptions exist, including amendments related to home hardening, wildfire safety, administrative efficiency, or greenhouse gas reduction strategies consistent with a General Plan adopted before June 10, 2025. The Town’s proposed ordinance meets these exceptions, as its amendments are consistent with prior local codes, wildfire risk mitigation, and the Town’s Sustainability Plan and General Plan adopted June 30, 2022. Specifically, the Reach Codes fall within the exceptions under AB 130 (Health & Safety Code § 17958(b)(5)) allowing amendments necessary to implement a general plan adopted before June 10, 2025 that permits mixed-fuel residential construction while incentivizing all-electric design as part of a local greenhouse gas reduction strategy.

On June 30, 2025, Governor Newsom signed Assembly Bill 130, which incorporated elements of AB 306. AB 130 restricts local amendments to the California Building Standards Code that apply to residential development from October 1, 2025, through June 1, 2031 — two three-year code cycles. The statute provides limited exceptions, including:
• Amendments substantially equivalent to those in effect before September 30, 2025; • Emergency amendments to protect health and safety;
• Amendments related to home hardening and wildfire safety; • Amendments necessary to implement a general plan adopted before June 10, 2025 that supports greenhouse-gas reduction while allowing mixed-fuel construction; and • Administrative efficiency amendments that reduce permitting time or cost.

The proposed Reach Codes meet these exceptions because they continue the Town’s previously adopted standards, further home-hardening goals, and implement the Town’s 2022 General Plan and Sustainability Plan strategies.

Interagency Coordination and Regional Alignment
Staff collaborated with the Santa Clara County Fire Department (SCCFD), Silicon Valley Clean Energy (SVCE), TRC Energy Consultants, and nearby jurisdictions—Monte Sereno, Saratoga,

ITEM NO. 10.

PAGE 4 OF 6
SUBJECT: Town of Los Gatos Amendments to the Building and Fire Codes DATE: October 31, 2025
Cupertino, Los Altos Hills, and the County of Santa Clara—to promote regional consistency in developing local amendments while accounting for each community’s operational needs.

In accordance with Health and Safety Code § 17958.7(a), notice of public hearing was provided on November 24, 2025, as required by law, and the Town Council will hold the required public hearing prior to adoption of the ordinance.

DISCUSSION:

The 2025 California Building Standards Code will take effect statewide on January 1, 2026. To comply, the Town must adopt the new codes by repealing and replacing Chapter 6 ('Building Regulations') and Chapter 9 ('Fire Prevention and Protection') of the Town Code, with an effective date no later than December 31, 2025. Given the comprehensive changes between the 2022 and 2025 editions of Title 24, a full repeal and replacement of both chapters ensures consistency, transparency, and alignment with State mandates. For informational purposes, Attachment 5 includes a redline version illustrating the specific amendments relative to the prior ordinance.

In addition to adopting the 13 Parts of Title 24, the Town also proposes adopting the 2024 International Property Maintenance Code, which provides procedures for the maintenance, repair, and demolition of existing buildings.

Potential Reach Codes
Two Reach Codes are proposed for Council consideration (Attachment 2). If preferred, Council may introduce the ordinance without these provisions (Attachment 4). The Reach Codes are designed to reduce air pollution, improve energy efficiency, and promote electrification in existing single-family homes while avoiding any requirement to upgrade electrical service panels.

AC to Heat Pump (Section 6.120.050): When a homeowner replaces or installs a new airconditioning unit in an existing single-family home, the new system must either be a heat pump providing both heating and cooling, or a standard AC paired with additional energy-efficiency measures that yield comparable savings. Projects may comply by • Installing a heat pump in place of either the furnace or AC unit, using the existing furnace as backup where retained; or
• Installing a high-efficiency AC unit and implementing building energy improvements such as enhanced attic insulation or duct sealing.

The 2025 Cost-Effectiveness Study (Attachment 3) is incorporated into the record by reference as the supporting documentation required under Public Resources Code § 25402.1(h)(2). The Town’s Reach Code provisions rely specifically on the single-family Air Conditioner-to-Heat Pump and Electric-Readiness analyses presented in Sections 3 and 4 (Tables 12–17) of the

ITEM NO. 10.

PAGE 5 OF 6
SUBJECT: Town of Los Gatos Amendments to the Building and Fire Codes DATE: October 31, 2025
study, which demonstrate lifecycle cost-effectiveness for the measures adopted in Sections

6.120.050 and 6.70.020 of the ordinance. The 2025 Cost-Effectiveness Study (Attachment 3) is hereby incorporated into the record by reference as the supporting documentation demonstrating compliance with Public Resources Code § 25402.1(h)(2).

Electric Readiness (Section 6.70.020): When electrical work occurs within three feet of a gas appliance, the project must include conduit and panel capacity to accommodate a future electric appliance. This requirement mirrors those adopted in Sunnyvale and Mountain View and avoids requiring any service-panel upgrades.

Findings and Legal Compliance
Pursuant to California Health and Safety Code §§17958, 17958.5, and 17958.7, local jurisdictions may adopt more stringent standards if justified by local conditions. The ordinance includes findings identifying the Town’s specific climatic, geologic, and topographic conditions, which, exacerbated by climate change, justify the adoption of both the home hardening and GHG reduction measures. The ordinance aligns with the General Plan and Sustainability Plan and allows mixed-fuel construction consistent with federal law while incentivizing all-electric options. Following adoption, staff will submit the amendments to CBSC and CEC for confirmation.

The Resolution (Attachment 1) formally affirms the Town’s policy to reduce greenhouse gas emissions from buildings, declaring that the Reach Codes are integral to the Town’s greenhouse gas reduction strategy in alignment with the Sustainability Plan and General Plan. This resolution also fulfills the requirements under AB 130 for consistency with adopted local GHG reduction strategies.

The Town Council adopts by reference the findings set forth in the Ordinance pursuant to California Health and Safety Code Sections 17958, 17958.5, and 17958.7 and Public Resources Code Section 25402.1(h)(2), determining that such amendments are reasonably necessary due to local climatic, geological, and topographical conditions.

Pursuant to California Health and Safety Code §§ 17958, 17958.5, and 17958.7, the Town Council finds that these local amendments are reasonably necessary due to local climatic, geological, and topographical conditions—specifically, heightened wildfire risk, steep terrain, and seismic hazards. The amendments are consistent with the Town’s General Plan and Sustainability Plan and allow mixed-fuel construction consistent with federal law while incentivizing all-electric design. Following adoption, staff will submit the ordinance and findings to the California Building Standards Commission and California Energy Commission for confirmation of compliance under Public Resources Code § 25402.1(h)(2).

The Town Council must adopt the Ordinance (Attachment 2 or 4) with the findings as part of the first reading. These findings satisfy the requirements of Health and Safety Code §§ 17958,

ITEM NO. 10.

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SUBJECT: Town of Los Gatos Amendments to the Building and Fire Codes DATE: October 31, 2025
17958.5, and 17958.7 and will be transmitted to the California Building Standards Commission and the California Energy Commission upon adoption.

The local amendments cannot be enforced until the Town files the adopted ordinance and findings with the CBSC and, for Energy Code amendments, receives CEC approval under PRC §25402.1(h)(2) (in addition to CBSC filing acknowledgment).

CONCLUSION:

Staff recommends the Town Council adopt the resolution and introduce the ordinance(s) as appropriate to ensure timely compliance with State mandates and local climate goals. Option 1 (with Reach Codes) advances the Town’s sustainability and public health objectives; Option 2 (without Reach Codes) satisfies State adoption requirements.

The ordinance will become effective 30 days after adoption and shall apply to building permit applications submitted on or after January 1, 2026, consistent with the State’s effective date for the 2025 California Building Standards Code.

ENVIRONMENTAL ASSESSMENT:

This action is not a project under the California Environmental Quality Act (CEQA) because it can be seen with certainty that adoption of these code amendments will not cause a direct or reasonably foreseeable indirect physical change in the environment (CEQA Guidelines § 15378).

If considered a project, the ordinance is categorically exempt under CEQA Guidelines §§ 15307 (Actions for the Protection of Natural Resources) and 15308 (Actions for the Protection of the Environment).

COORDINATION:

The Community Development Department coordinated with the offices of the Town Manager, Town Attorney, and the Santa Clara County Fire Department in preparation of this report and proposed ordinances.

Attachments:

1. Draft Greenhouse Gas Emission Reduction Resolution

2. Draft Ordinance with Reach Codes (Sections 6.70.020 and 6.120.050)

3. 2025 Cost-Effectiveness Study

4. Draft Ordinance without Reach Codes

5. Redline Draft Ordinance

ITEM NO. 10.
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ATTACHMENT 1
RESOLUTION 2025-___

RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS CONFIRMING

TOWN POLICY ON GREENHOUSE GAS EMISSION REDUCTIONS EMANATING FROM

BUILDINGS
WHEREAS, the Town of Los Gatos Sustainability Plan addresses the major sources of greenhouse gas (GHG) emissions in Los Gatos and sets forth a detailed and long-term strategy that the Town and community can implement to achieve the GHG emissions reduction target; and
WHEREAS, Section 17958(b) of the California Health and Safety Code generally restrict local agencies from adopting changes applicable to residential units in the provisions adopted pursuant to Section 17922 and published in the California Building Standards Code unless the changes meet an exception; and
WHEREAS, Section 17958 (b) (5) of the California Health and Safety Code specifies that local changes applicable to residential units in the provisions adopted pursuant to Section 17922 and published in the California Building Standards Code may be adopted if the changes or modifications are necessary to implement a local code amendment that is adopted to align with a general plan approved on or before June 10, 2025, and that permits mixed-fuel residential construction consistent with federal law while also incentivizing all-electric construction as part of an adopted greenhouse gas emissions reduction strategy; and WHEREAS, the Town of Los Gatos adopted a General Plan on June 30, 2022; and WHEREAS, Policy 9.6 of the Environment and Sustainability Element of the Town of Los Gatos General Plan specifies to promote energy conservation in business and residential uses by encouraging installation of fixture and appliance upgrades, installation of solar panels, and other retrofits to existing structures; and
WHEREAS, the Town of Los Gatos has adopted a Sustainability Plan that identifies actions that the Town may take to reduce greenhouse gas emissions in commercial and residential buildings; and
WHEREAS, buildings constitute a significant source of greenhouse gas emissions in the Town of Los Gatos of approximately 42%, and taking reasonable regulatory actions to reduce

ITEM NO. 10.
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ATTACHMENT 1
greenhouse gas emissions from buildings is an important component of the Town’s strategy to reduce greenhouse gas emissions; and
WHEREAS, the Town intends to adopt ordinances making changes to the provisions adopted pursuant to Section 17922 and published in the California Building Standards Code for residential units that require new and replaced air conditioning units to be capable of both heating and cooling, and to require certain building modifications to include electric readiness components.

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

1. As described in the Town’s Sustainability Plan, it is the Town’s policy to reduce greenhouse gas emissions, including by reducing greenhouse gas emissions from buildings.

2. The Town’s proposed changes to the provisions adopted pursuant to Section 17922 and published in the California Building Standards Code for residential units are a part of the Town’s adopted greenhouse gas emissions reduction strategy in its Sustainability Plan.

ITEM NO. 10.
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ATTACHMENT 1
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 4th day of November 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

ITEM NO. 10.
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Ordinance November 4, 2025
ATTACHMENT 2

ORDINANCE

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS REPEALING CHAPTER 6, “BUILDING REGULATIONS,” AND
CHAPTER 9, “FIRE PREVENTION AND PROTECTION,” AND
REPLACING THEM WITH A NEW CHAPTER 6, “BUILDING CODES AND REGULATIONS,” THAT INCLUDES THE NEW 2025 CALIFORNIA BUILDING, FIRE, AND REACH CODES AS AMENDED. AMENDMENTS INCLUDE UPDATED FIRE SAFETY REQUIREMENTS IN

WILDLAND URBAN INTERFACE AREAS FOR NEW, RENOVATED, OR REPAIRED

STRUCTURES, AS WELL AS REACH CODES AFFECTING AIR CONDITIONING REPLACEMENT AND ELECTRICAL READINESS IN RENOVATIONS/ALTERATIONS.

WHEREAS, the California Building Standards Commission (CBSC) is responsible for administering the proposal, review, adoption, and implementation of the codes and regulations that establish building standards throughout California contained in Title 24 of the California Code of Regulations, commonly referred to as the California Buildings Standards Code; and WHEREAS, the 2025 California Building Standards Code was published July 1, 2025, and will go into effect on January 1, 2026; and
WHEREAS, local jurisdictions are required to adopt and enforce the triennial California Building Standards Code published by the CBSC with any local amendments by January 1 of their effective year, or be mandated to accept, by default, the version published by the State; and
WHEREAS, California Health and Safety Code Section 17958 requires cities to adopt building regulations that are substantially the same as those adopted by the CBSC and contained in the California Building Standards Code; and WHEREAS, California Health and Safety Code Sections 17958.5, 17958.7, and 18941.5 allow cities to enact more stringent standards to the California Building Standards Code, including but not limited to green building standards, based on express findings that such standards are reasonably necessary because of local climatic, geological, or topographical conditions; and
WHEREAS, human activities that release greenhouse gases into the atmosphere contribute to the increase of the worldwide average temperature, drought conditions, and duration of fire seasons; and
WHEREAS, according to the California Department of Forestry and Fire Protection, nine of the ten largest wildfires in California history have occurred since 2017, destroying nearly 10,000 structures and burning more than 4.5 million acres; and WHEREAS, the Town of Los Gatos is situated along a wildland-urban interface and as a result is extremely vulnerable to wildfires and firestorms; and

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WHEREAS, Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code as modified by AB 130 allow local jurisdictions to make changes to state building standards affecting residential units so long as those changes are necessary to implement a local code amendment that is adopted to align with a general plan approved on or before June 10, 2025, and that permits mixed-fuel residential construction consistent with federal law while also incentivizing all-electric construction as part of an adopted greenhouse gas emissions reduction strategy; and
WHEREAS, pursuant to Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code as modified by AB 130, the Town’s proposed AC to heat pump and electric-readiness changes to building standards affecting residential units in the 2025 California Energy Code and 2025 California Green Building Standards Code are necessary to implement the Town’s local code amendment; and
WHEREAS, pursuant to Sections 17958, 17958.5 and 17958.7 of the Health and Safety Code as modified by AB 130, the Town’s local code amendment is adopted to align with the Town’s General Plan while permitting mixed-fuel residential construction and incentivizing electric construction as part of the Town’s adopted greenhouse gas emission reduction strategy stated in its Sustainability Plan; and
WHEREAS, the Town’s General Plan Environment and Sustainability Element, which was adopted on June 30, 2022, includes relevant Town goals and policies including “[s]upport initiatives, legislation, and actions to respond to climate change“; “[p]romote energy conservation in . . . residential uses by encouraging installation of fixture and appliance upgrades, . . . and other retrofits to existing structures”; and WHEREAS, the Town’s adopted greenhouse gas reduction strategy in its 2012 Sustainability Plan calls for “green building measures” to reduce greenhouse gas emissions, including by requiring energy-efficient design; “identify[ing] and remov[ing] regulatory or procedural barriers to implementing green building practices in the town, by updating codes, guidelines, and zoning”; and “develop[ing] green building policies and programs that are optimized on a regional scale”; and “encourage adoption of green building practices that include the design and development of environmentally responsible . . . residential development and retrofits”; and
WHEREAS the Town’s adopted greenhouse gas reduction strategy in its 2012 Sustainability Plan also calls for “energy conservation measures” to reduce greenhouse gas emissions; and
WHEREAS, consistent with the Town’s adopted greenhouse gas reduction strategy in its 2012 Sustainability Plan and the Town’s General Plan, adopted on June 30, 2022, the proposed AC to heat pump and electric-readiness changes to the 2025 California Energy Code and 2025 California Green Building Standards Code establish requirements for existing single-family structures which will reduce demands for local energy resources, reduce regional pollution, and reduce the Town’s collective contribution to greenhouse gas emissions; and

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WHEREAS, consistent with the requirements of AB 130, the proposed AC to heat pump and electric-readiness changes imposed by this ordinance permits mixed-fuel residential construction; and
WHEREAS, consistent with the requirements of AB 130, the proposed AC to heat pump and electric-readiness changes imposed by this ordinance incentivize all-electric construction by encouraging the cost-effective installation of electric space conditioning appliances and reducing barriers to future electrification of various appliances types; and WHEREAS, the most cost-effective time to improve the energy efficiency and encourage electrification of existing structures is during significant alterations and additions, when electrical infrastructure may be installed alongside other significant improvements; and WHEREAS, Section 101.7.1 of the California Green Building Standards Code provides that local climatic, geological or topographical conditions include environmental conditions established by a city, county, or city and county through findings; and WHEREAS, following adoption of this Ordinance, the Town will submit the local amendments to the 2025 California Building Standards Code and required findings to the CBSC for filing, in accordance with Health & Safety Code Section 17958.7(a); and WHEREAS, Public Resources Code section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code allow a local government to modify the state energy standards when the government finds that its modifications are cost-effective and the California Energy Commission finds that the modifications will require the diminution of energy consumption levels permitted by the Energy Code; and
WHEREAS, staff has reviewed the cost-effectiveness studies prepared by the California Statewide Codes and Standards Reach Code Program and finds them sufficient to show that the local AC to heat pump modifications will comply with the requirements of Public Resources Code section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code; and WHEREAS, based on these studies, the Town Council finds that the local AC to heat pump modifications are cost-effective and will required buildings to be designed to consume no more energy than permitted by the California Energy Code; and WHEREAS, following adoption of this Ordinance, the Town will submit the local amendments to the energy standards in the 2025 California Green Building Standards Code along with the required findings to the California Energy Commission, in accordance with Public Resources Code Section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code (Cal. Code Regs. Title 24, Part 1);

NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES HEREBY ORDAIN AS FOLLOWS:

Section 1.

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LEGISLATIVE FINDINGS
A. The recitals set forth above are true and correct and are incorporated into this ordinance by reference as if fully set forth herein.

B. In accordance with Health and Safety Code Sections 17958 and following, the Town Council finds that local amendments are reasonably necessary because of the following local climatic, geological, or topographical conditions:

1. Climatic: The Town of Los Gatos experiences low humidity, high wind, and warm temperatures during the summer months, creating conditions that are particularly conducive to the ignition and spread of grass, brush, and structure fires.

2. Geologic: The Town of Los Gatos is situated adjacent to active earthquake faults capable of producing substantial seismic events.

3. Topographic: The Town of Los Gatos is partially located in rugged, steep, and heavily vegetated hillsides accessible over limited roadways that are steep, narrow, and circuitous.

4. Topographic: The Town of Los Gatos is divided by a creek, freeways, and other traffic corridors, and is partially located in hillside areas with limited access. The occurrence of a major earthquake would significantly impact the ability of fire crews to respond to emergencies should one or more bridges collapse or be substantially damaged. Additionally, fire suppression capabilities will be severely limited should the water system be extensively damaged during a seismic event.

5. Climatic: Climate change exacerbates fire risk in the Town. Greenhouse gas emissions contribute to climate change. The State of California has outlined specific steps to reduce greenhouse gas emissions to prevent these negative impacts of a changing climate. This allows local governments to achieve greenhouse gas emission reductions with a climate-positive impact by powering buildings from clean electricity. The proposed Reach Code would reduce the amount of greenhouse gas emissions produced by the Town’s existing housing and encourage the use of cleaner sources of energy that are in line with Mitigation Measure GHG-1 of the General Plan Environmental Impact Report. These climatic conditions along with the greenhouse emissions generated from existing structures require exceeding the energy standards for construction established in the 2025 California Buildings Standards Code.

6. Due to the Town’s local climatic, geological, geographical, and topographical conditions, mitigation measures are necessary, such as automatic fire suppression systems, communications systems, access to buildings, seismic protection, safety controls for hazardous materials, and other safeguards to minimize the risks to citizens, firefighters, and property resulting from the severity of a fire threat and potential delays in responding to such threats.

C. In accordance with Health and Safety Code Sections 17958, 17958.5, and 17958.7, the Town Council finds that the AC to heat pump and electric-readiness changes to

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building standards affecting residential units in the 2025 California Energy Code and 2025 California Green Building Standards Code are necessary to implement the Town’s local code amendment adding an AC to heat pump and electric-readiness requirement, and that the local code amendment:
a. Is adopted to align with the Town’s General Plan, specifically Section 8.5, “Climate Change/Greenhouse Gas Emissions,” of Chapter 8, “Environment and Sustainability Element,” and Policy 9.6, “Energy Conservation and Renewable Energy Use,” adopted on June 30, 2022; and
b. Permits mixed-fuel residential construction consistent with federal law; and c. Incentivize all-electric construction, as part of the Town’s adopted greenhouse gas emissions reduction strategy in its 2012 Sustainability Plan.

In accordance with Public Resources Code Section 25402.1(h)(2) and Section 10-106 of the 2025 California Administrative Code (Cal. Code Regs. Title 24, Part 1), the Town Council finds that the Town’s AC to heat pump reach code modifications to the energy standards in the California Green Building Standards Code (Cal. Code Regs. Title 24, Part 11) (“CALGreen”) are costeffective, and that the modifications will require the diminution of energy consumption levels permitted by the Energy Code.

7. The Town Council finds that all codes adopted herein related to residential structures are substantially equivalent to prior local amendments, or are related to home hardening and wildfire safety, consistent with the requirements of Assembly Bill 130.

Section 2.

CHAPTER 6, “Buildings and Building Regulations,” and CHAPTER 9 “Fire Prevention and Protection,” of the Los Gatos Town Code ARE REPEALED IN THEIR ENTIRETY AND REPLACED WITH A NEW CHAPTER 6. “Building Codes and Regulations,” to read as follows:

Chapter 6 BUILDING CODES and REGULATIONS
Table of Contents
ARTICLE I. CALIFORNIA ADMINISTRATIVE CODE
Sec. 6.10.010 Adopted.

Sec. 6.10.020 Conflicting Provisions.

Sec. 6.10.030 Qualifying Alterations.

ARTICLE II. CALIFORNIA BUILDING CODE
Sec. 6.20.010 Adopted.

Sec. 6.20.020 IBC Oversight.

Sec. 6.20.030 Schedule of Permit Fees.

Sec. 6.20.040 Automatic Sprinkler Systems.

Sec. 6.20.050 Smoke Control Systems.

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Sec. 6.20.060 Roof Drainage.

Sec. 6.20.070 Roof Covering Requirements in a Wildland-Urban Interface Fire Area and other areas.

Sec. 6.20.080 Concrete Strength.

Sec. 6.20.090 Limits on methods using Gypsum Board and Cement Plaster ARTICLE III. CALIFORNIA RESIDENTIAL CODE
Sec. 6.30.010 Adopted.

Sec. 6.30.020 Automatic Sprinkler Systems.

Sec. 6.30.030 Energy Storage Systems.

Sec. 6.30.040 Limits on methods using Gypsum Board and Cement Plaster.

ARTICLE IV. CALIFORNIA ELECTRIC CODE
Sec. 6.40.010 Adopted.

ARTICLE V. CALIFORNIA MECHANICAL CODE
Sec. 6.50.010 Adopted.

ARTICLE VI. CALIFORNIA PLUMBING CODE
Sec. 6.60.010 Adopted.

Sec. 6.60.020 Backflow protection.

ARTICLE VII. CALIFORNIA ENERGY CODE
Sec. 6.70.010 Adopted.

Sec. 6.70.020 Electric Readiness Reach Code.

ARTICLE VIII. CALIFORNIA WILDLAND URBAN INTERFACE CODE
Sec. 6.80.010 Adopted.

Sec. 6.80.020 Scope.

Sec. 6.80.030 Application.

Sec. 6.80.040 Additions and Alterations.

ARTICLE IX. CALIFORNIA HISTORICAL BUILDING CODE
Sec. 6.90.010 Adopted.

ARTICLE X. CALIFORNIA FIRE CODE
Sec. 6.100.010 Adopted.

Sec. 6.100.020 General.

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Sec. 6.100.030 Administration and Enforcement.

Sec. 6.100.040 CHAPTER 1, DIVISION II Administration.

Sec. 6.100.050 Chapter 2, Definitions.

Sec. 6.100.060 Fire Apparatus Access Roads.

Sec. 6.100.070 Access to Building Openings and Roofs.

Sec. 6.100.080 Premises Identification.

Sec. 6.100.090 Emergency Responder Communication Coverage.

Sec. 6.100.100 Fire and Smoke Protection Features.

Sec. 6.100.110 Fire Protection and Life Safety Systems.

Sec. 6.100.120 Automatic Sprinkler Systems.

Sec. 6.100.130 Fire Alarm and Detection Systems.

Sec. 6.100.140 Smoke Control Systems.

Sec. 6.100.150 Energy Systems.

Sec. 6.100.160 Electrical Energy Storage Systems (ESS).

Sec. 6.100.170 Fire Safety During Construction and Demolition.

Sec. 6.100.180 Fire Department Site Access and Water Supply.

Sec. 6.100.190 Completion Before Occupancy.

Sec. 6.100.200 Temporary Heating and Cooking Operations.

Sec. 6.100.210 Immersion Heaters.

Sec. 6.100.220 Hazardous Materials-General Provisions.

Sec. 6.100.230 Corrosive Materials.

Sec. 6.100.240 Explosives and Fireworks.

Sec. 6.100.250 Flammable and Combustible Liquids.

Sec. 6.100.260 On-Demand Mobile Fueling Operations.

Sec. 6.100.270 Flammable Gases and Flammable Cryogenic Fluids.

Sec. 6.100.280 Highly Toxic and Toxic Materials.

Sec. 6.100.290 Pyrophoric Materials.

Sec. 6.100.300 Appendix B-Fire Flow Requirements for Buildings.

Sec. 6.100.310 Appendix C-Fire Hydrant Locations and Distribution.

Sec. 6.100.320 Appendix D-Fire Apparatus Access Roads.

ARTICLE XI. CALIFORNIA EXISTING BUILDING CODE
Sec. 6.110.010 Adopted.

ARTICLE XII. CALIFORNIA GREEN BUILDING STANDARDS CODE
Sec. 6.120.010 Adopted.

Sec. 6.120.050 AC to Heat Pump Reach Code
ARTICLE XIII. CALIFORNIA REFERENCE STANDARDS CODE
Sec. 6.130.010 Adopted.

ARTICLE XIV. INTERNATIONAL PROPERTY MAINTENANCE CODE
Sec. 6.140.010 Adopted.

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Sec. 6.140.020 Application of other codes.

ARTICLE XV. EXPEDITED PERMIT PROCESS FOR SMALL RESIDENTIAL ROOFTOP SOLAR SYSTEMS Sec. 6.150.010 Purpose and intent.

Sec. 6.150.020 Definitions.

Sec. 6.150.030 Applicability.

Sec. 6.150.040 Solar energy system requirements.

Sec. 6.150.050 Applications and documents.

Sec. 6.150.060 Permit review and inspection requirements.

ARTICLE XVI. BUILDING RELOCATION CODE OF THE TOWN
DIVISION 1. GENERALLY
Sec. 6.140.010 Title.

Sec. 6.140.020 Interference with demolition or removal of building.

DIVISION 2. PERMIT
Sec. 6.140.030 Required, exceptions.

Sec. 6.140.040 Application.

Sec. 6.140.050 Review of application, duty of applicant.

Sec. 6.140.060 Issuance, fees.

Sec. 6.140.070 When issuance prohibited.

Sec. 6.140.080 Conditions of issuance.

Sec. 6.140.090 Bond required.

Sec. 6.140.100 Conditions of bond.

Sec. 6.140.110 Default on bond.

Sec. 6.140.120 Bond other than surety bond—Default.

Sec. 6.140.130 Same—Release.

ARTICLE I. CALIFORNIA ADMINISTRATIVE CODE
Sec 6.10.010. – Adopted.

The 2025 California Administrative Code, California Code of Regulations, Title 24, Part 1, is adopted by reference.

Sec. 6.10.020. – Conflicting Provisions.

When any provisions of the administrative sections of the codes adopted in Chapter 6 conflict with the administrative provisions found in the California Administrative and Building Codes, the California Administrative and Building Codes shall apply. If any code

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adopted in this Chapter does not include administrative provisions, the administrative provisions of the California Administrative and Building Codes shall apply.

Sec 6.10.030. – Qualifying alterations.

Substantial renovations/alterations that include replacement of over fifty (50) percent of the existing foundation for purposes other than a repair or reinforcement, as defined in California Existing Building Code, Section 202; or where over fifty (50) percent of the existing framing above the sill plate is removed or replaced for purposes other than repair, shall meet the new construction requirements of California Code of Regulations, Title 24 as modified by the Town of Los Gatos. If either of these criteria are met within three years, measured from the date of the most recent previously obtained permit final date, the project shall be subject to the new construction requirements.

ARTICLE II. CALIFORNIA BUILDING CODE
Sec. 6.20.010 – Adopted.

The 2024 International Building Code (IBC), as amended by the State of California Building Standards Commission and known as the 2025 California Building Code (CBC), California Code of Regulations Title 24, Part 2, Volumes 1 and 2, with Appendix I, is adopted by reference and amended as follows:

Sec. 6.20.020 – IBC Oversight.

The California adoption of the new 2024 International Building Code may have inadvertently eliminated some construction requirements by oversight or erroneous reference to another code. In cases where the code adoption has inadvertently deleted or mis-referenced necessary construction requirements, the Town of Los Gatos Building Official may authorize use of construction requirements from the last previously adopted International Codes.

Sec. 6.20.030 – Schedule of Permit Fees.

Section 109.2 is amended to read as follows:

Section 109.2 Schedule of permit fees. Where a permit is required, a fee for each permit shall be paid as required, in accordance with the schedule as established by the (Town Council).

Section 109.2.1 is added to read as follows:
109.2.1. Plan Review Fees. When submittal documents are required by Section 109, a plan review fee shall be paid at the time of submitting the submittal documents for plan review. The plan review fee shall be 65 percent of the building permit fee. The plan

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review fees specified in this section are separate fees from the permit fees and are in addition to the permit fees.

When submittal documents are incomplete or changed so as to require additional plan review or when the project involves deferred submittal items as defined in Section 107.3.4.1, an additional plan review fee shall be charged at the per-hour plan review rate as adopted by the Town of Los Gatos.

Section 109.6.1 is added to read as follows:
109.6.1. Refunds. The building official may authorize refunds of Building Division fees which were erroneously paid or collected.

The building official may authorize refunding of not more than 80 percent of the permit fee paid when no work or inspections have been done under an issued permit.

The building official may authorize refunding of not more than 80 percent of the collected plan review fee when the plan check application is withdrawn or cancelled prior to any plan review work being done.

The building official shall not authorize refunding of any collected fee until a written request for a refund by the original permittee or applicant is received. Requests must be received no later than 180 days after the date of the fee payment.

Sec. 6.20.040 – Automatic Sprinkler Systems.

Section 903.2 of the California Building Code adopted by this article is amended to read as follows:
903.2 Where required. Approved automatic sprinkler systems in new and existing buildings and structures shall be provided in the locations described in either this Section or in Sections 903.2.1 through 903.2.12.

For the purposes of this Section, firewalls and fire barriers used to separate building areas shall be constructed in accordance with the California Building Code and shall be without openings or penetrations.

1. An automatic sprinkler system shall be provided throughout all new buildings and structures, other than Group R occupancies, except as follows:
a. Buildings and structures not located in any Wildland-Urban Interface and not exceeding 1,200 square feet of fire area.
b. Buildings and structures located in any Wildland-Urban Interface Fire Area and not exceeding 500 square feet of fire area.
c. Group S-2 or U occupancies, including photovoltaic support structures, used exclusively for vehicle parking which meet all of the following:

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i. Noncombustible construction.
ii. Maximum 5,000 square feet in building area.
iii. Structure is open on not less than three (3) sides nor 75% of structure perimeter.
iv. Minimum of 10 feet separation from existing buildings, or similar structures, unless area is separated by fire walls complying with California Building Code 706.
d. Canopies, constructed in accordance with CBC 406.7.2, used exclusively for weather protection of vehicle fueling pads per CBC 406.7.1 and not exceeding 5,000 square feet of fire area.

2. An automatic sprinkler system shall be installed throughout all new buildings with a Group R fire area.

Exception: Accessory Dwelling Unit, provided that all of the following are met:
a. The unit meets the definition of an Accessory Dwelling Unit as defined in the Government Code Section 65852.2.
b. The existing primary residence does not have automatic fire sprinklers. c. The accessory dwelling unit does not exceed 1,200 square feet in size. d. The unit is on the same lot as the primary residence. e. The unit meets all apparatus access and water supply requirements of Chapter 5 and Appendix B of the 2022 California Fire Code.

3. An approved automatic fire sprinkler system shall be installed in new manufactured homes (as defined in California Health and Safety Code Sections 18007 and 18009) and multifamily manufactured homes with two dwelling units (as defined in California Health and Safety Code Section 18008.7) in accordance with Title 25 of the California Code of Regulations.

4. An automatic sprinkler system shall be installed throughout existing buildings with a Group R fire area when additions are made causing the fire area to exceed 3,600 square feet.

Exception: Additions where all of the following are met:
a. Building addition does not exceed 500 square feet.
b. The resultant structure meets all water supply requirements of Chapter 5 and Appendix B of the 2022 California Fire Code.

5. An automatic sprinkler system shall be provided throughout existing Group A, B, E, F, L, M, S and U buildings and structures, when additions are made that increase the fire area to more than 3,600 square feet or that create conditions described in Sections 903.2.1 through 903.2.18.

6. Any change in the character of occupancy or in use of any building with a fire area equal to or greater than 3,600 square feet which, in the opinion of the Fire Code Official or building official, would place the building into a more hazardous