Los Gatos City Council
November 18, 2025

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

PRESENTATIONS
i. Proclamation for John Lochner.
ii. Receive a Presentation on the Community Health and Senior Services Commission YearEnd Report.

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.)

TOWN OF LOS GATOS

COUNCIL MEETING AGENDA
NOVEMBER 18, 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

1. Approve the Minutes of the November 4, 2025, Closed Session Town Council Meeting.

RECOMMENDATION: Approve the Minutes of the November 4, 2025, Closed Session Town Council Meeting.

2. Approve the Minutes of the November 4, 2025, Town Council Meeting.

RECOMMENDATION: Approve the Minutes of the November 4, 2025, Town Council Meeting.

3. Receive the Monthly Financial and Investment Report for September 2025.

RECOMMENDATION: Receive the Monthly Financial and Investment Reports for September 2025.

4. Authorize the Town Manager to execute the Second Amendment to the Agreement with Turbo Data Systems, Inc., which extends parking citation and permit management services through December 1, 2028, and increases the contract by $100,000, for a total not-to-exceed amount of $306,000.

RECOMMENDATION: Authorize the Town Manager to execute the Second Amendment to the Agreement with Turbo Data Systems, Inc., which extends parking citation and permit management services through December 1, 2028, and increases the contract by $100,000, for a total not-to-exceed amount of $306,000.

5. Adopt an Ordinance of the Town Council of the Town of Los Gatos 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. Zone Change Application Z23-005. Categorically Exempt Pursuant to CEQA Guidelines 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: Adopt an Ordinance of the Town Council of the Town of Los Gatos effecting a Zone Change from O (Office) to R-1:8 (Single-Family Residential, minimum lot size of 8,000 square feet) on property located at 14331 Capri Drive.

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.)

COUNCIL / MANAGER / ATTORNEY MATTERS
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 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 CLOSED SESSION MINUTES
MEETING DATE: 11/18/2025
ITEM NO: 1
DRAFT
Minutes of the Town Council Special Meeting – Closed Session Tuesday, November 4, 2025
The Town Council of the Town of Los Gatos conducted a special meeting in person to hold a Closed Session.

MEETING CALLED TO ORDER AT APPROXIMATELY 5:15 P.M.

ROLL CALL

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

Absent: None.

VERBAL COMMUNICATIONS (ONLY ON ITEMS ON THE AGENDA)
Member of the Public
- Commented on item two.

Gabrielle Whelan, Town Attorney, announced the closed session title as listed on the agenda.

THE TOWN COUNCIL MOVED TO CLOSED SESSION ON THE FOLLOWING ITEMS:

1. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision (d)(2) of Government Code Section 54956.9: 1 case

2. EMPLOYEE PERFORMANCE EVALUATION (Government Code Section 54957) Titles: Town Manager and Town Attorney
There was no reportable action.

ADJOURNMENT
The meeting adjourned at approximately 6:45 p.m.

Attest: Submitted by:
___________________________ __________________________
Jenna De Long, Deputy Town Clerk Chris Constantin, Town Manager

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: 11/18/2025
ITEM NO: 2
DRAFT
Minutes of the Town Council Meeting
Tuesday, November 4, 2025
The Town Council of the Town of Los Gatos conducted a regular meeting in person and via teleconference.

MEETING CALLED TO ORDER AT 7:00 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 the members of the public to join the Council with 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 21, 2025, Joint Town Council and Planning Commission Special Meeting.

2. 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.

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.

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. ORDINANCE 2378

6. Approve Modifications to the Town’s General Fund Reserve Policy as Recommended by the Finance Commission.

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.

ITEM NO. 2.

PAGE 2 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of November 4, 2025 DATE: November 18, 2025

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.

Mayor Hudes opened public comment.

Member of the Public
- Commented on concerns related to item two.

Lee Fagot
- Commented on concerns related to item five.

Mayor Hudes closed public comment.

MOTION: Motion by Council Member Ristow to approve items one through nine on the consent calendar. Seconded by Vice Mayor Moore
VOTE: Motion passed unanimously with Mayor Hudes abstaining from item one.

VERBAL COMMUNICATIONS
Susan Bassi
- Commented on various concerns.

Joe Enz, Friends of the Los Gatos Creek
- Commented on concerns with various individuals.

Member of the Public
- Commented on various concerns.

PUBLIC HEARING

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

ITEM NO. 2.

PAGE 3 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of November 4, 2025 DATE: November 18, 2025
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. RESOLUTION 2025-058
Robert Gray, Chief Building Official, presented the staff report.

Mayor Hudes opened public comment.

Nova Jayaraj
- Commented on the item and stated support for implementing the Air Conditioning (AC) to heat pump building code update.

Prisha Gupta
- Commented on the item and stated support for integrating the new building code regulations.

Dashiell Leeds
- Commented on the item and stated support for the adoption of the building codes, including the reach codes provisions.

Ryan C
- Commented on concerns with the requirement for electric readiness.

Member of the Public
- Commented on concerns with strict and costly policies.

Mayor Hudes closed public comment.

Council asked questions and discussed the item.

Tony Eulo, representative from Silicon Valley Clean Energy, answered Council questions.

MOTION: Motion by Council Member Ristow to adopt a resolution in attachment one confirming Town policy on greenhouse gas emissions reduction; and introduce an ordinance in attachment two, by title only, repealing Chapter 6, Building Regulations, and Chapter 9, Fire Prevention and Protection, of the Town Code, and

ITEM NO. 2.

PAGE 4 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of November 4, 2025 DATE: November 18, 2025
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. Seconded by Vice Mayor Moore.

VOTE: Motion passed unanimously.

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 (SingleFamily 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. RESOLUTION 2025-059 Ryan Safty, Associate Planner, presented the staff report.

Mayor Hudes and Council Member Ristow stated they visited the site and did not speak to anyone.

Mayor Hudes opened public comment.

Kevin Yu, the architect from GKW Architects, gave a brief presentation on the project.

Mayor Hudes closed public comment.

Council asked questions and discussed the item.

MOTION: Motion by Council Member Badame to introduce the ordinance effecting the Zone Change in attachment two; adopt the resolution making the required findings and considerations to approve the Architecture and Site application in attachment three; and approve Zone Change application Z-23-005 to introduce the Zone Change Ordinance in attachment two, approve Architecture and Site application S-24-043 inclusive of the recommended Conditions of Approval included as Exhibit A of attachment three, and the development plans included as Exhibit 11 of attachment

ITEM NO. 2.

PAGE 5 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of November 4, 2025 DATE: November 18, 2025
four, and the revised architectural plans included in attachment nine. Seconded by Vice Mayor Moore.

VOTE: Motion passed unanimously.

Mayor Hudes called a recess at 8:39 p.m.

Mayor Hudes reconvened the meeting at 8:52 p.m.

OTHER BUSINESS

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.

Clinton Tada, Support Services Captain, presented the staff report.

Mayor Hudes opened public comment.

No one spoke.

Mayor Hudes closed public comment.

Council asked questions and discussed the item.

Adam Smith and Andy Grapp, representatives from Axon, answered Council questions.

MOTION: Motion by Council Member Badame to 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. Seconded by Council Member Ristow.

VOTE: Motion passed unanimously.

13. Informational Report on E-Bike Safety, Education, Enforcement, and Legislation.

ITEM NO. 2.

PAGE 6 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of November 4, 2025 DATE: November 18, 2025
Jamie Field, Chief of Police, presented the staff report.

Mayor Hudes opened public comment.

Member of the Public
- Commented on safety concerns.

Lee Fagot
- Commented on E-Bike safety and regulations.

Yamamoto
- Commented on E-Bike safety and laws.

Mayor Hudes closed public comment.

Council asked questions and discussed the item.

No action was taken.

COUNCIL/TOWN MANAGER REPORTS
Council Matters
- Council Member Rennie stated he attended the Silicon Valley Clean Energy Risk Oversight Committee meeting, the Valley Water Advisory Commission meeting; met with Tony Eolo from Silicon Valley Clean Energy; toured the West Valley Community College campus; met with a resident regarding Pickleball at La Rinconada park; and attended the groundbreaking at the Los Gatos Lodge site.
- Vice Mayor Moore stated he spoke to the Los Gatos Leadership class, the Stratford Los Gatos Student Council election participants; participated a panel for West Valley Community Services on health and homelessness; spoke to residence of the Terraces of Los Gatos; attended the Los Gatos Union School District Civil Leaders strategic planning session, the Pickleball Parks and Sustainability Commission special meeting, the Planning Commission meeting regarding the North 40; attended the groundbreaking at the Los Gatos Lodge site, and spent Halloween on Tait Ave.
- Council Member Badame stated she participated in a resident Wildfire Advisory Group meeting and the Council Policy Committee meeting.
- Council Member Ristow stated she met with residents regarding pickleball issue; attended the Pickleball Parks and Sustainability Commission special meeting; met with Silicon Valley Clean Energy staff regarding Reach Codes: attended the Council Policy Committee meeting, met with residents regarding traffic calming and Firewise community; met with a member of the Historic Preservation Committee, the Good Ol' Gals, the Los Union School District Assistant Superintendent to discuss e-bike safety for k-8 graders; attended the Summer Hills groundbreaking at the Los Gatos Lodge site.

ITEM NO. 2.

PAGE 7 OF 7
SUBJECT: Draft Minutes of the Town Council Meeting of November 4, 2025 DATE: November 18, 2025
- Mayor Hudes stated he attended the West Managers and Mayor meeting; participated in the ribbon cutting for Butter Paddle, the Community Health and Senior Services Commission meeting; tour of West Valley Community College; participated in the Council Policy Committee, the Los Gatos Union School District strategic planning session, the ribbon cutting at the new incident command post at the Pacific Clinic property and Los Gatos Thrives meetings.

Town Manager Matters
Chris Constantin, Town Manager
- Spoke about West Valley Community College, and attended a regional Wildfire planning session hosted by Congressman Sam Liccardo.

Closed Session Report
Gabrielle Whelan, Town Attorney
- Stated that the Town Council met in closed session to discuss two items: one item was anticipated litigation pursuant to Government Code Section 54956.9, and the other item was employee evaluations for the Town Manager and Town Attorney pursuant to Government Code Section 54957, and there is no reportable action.

ADJOURNMENT
The meeting adjourned at 10:11 p.m.

Respectfully Submitted:
_____________________________________
Keara Johnson, Deputy Town Clerk

ITEM NO. 2.

PREPARED BY: Eric Lemon
Finance and Accounting Manager
Reviewed by: Town Manager, Assistant Town Manager, 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: 11/18/2025
ITEM NO: 3
DATE: November 3, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive the Monthly Financial and Investment Report for September 2025 RECOMMENDATION: Receive the Monthly Financial and Investment Reports for September 2025.

FISCAL IMPACT:

There is no fiscal impact from the receipt of this report.

STRATEGIC PRIORITY:

This item aligns with the strategic priority to ensure prudent financial management.

BACKGROUND:

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

Attachment 1 contains the September 2025 monthly Financial and Investment Report, which fulfills this requirement.

The September 2025 Monthly Financial and Investment Report will be received by the Finance Commission at its December 8, 2025, regular meeting.

ITEM NO. 3.

PAGE 2 OF 3
SUBJECT: Monthly Financial and Investment Report for September 2025 DATE: November 3, 2025
DISCUSSION:

The September 2025 Monthly Financial and Investment Report includes a Fund Balance Schedule, representing estimated funding available for all funds at the beginning of the fiscal year and at the end of the respective month.

As operations fluctuate month to month, there are differences between balances in one month and balances in another. Such differences may be significant due to the type of activity in those months and the timing of any estimates used in the presentation, based on the information available. This is demonstrated by the attached September 30, 2025, fund balance report.

In the case that the differences are extraordinary and unanticipated, we will ensure we present more information to explain the differences.

The difference between the September 30, 2025, and August 31, 2025, estimated fund balances is due to normal day-to-day fluctuations in revenues and expenditures.

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

As illustrated in the summary below, Ending Fund Balance = Cash + Assets - Liabilities, which represents the actual amount of funds available.

As of September 30, 2025, the Town’s financial position (Cash Plus Other Assets $91.66M, Liabilities $31.02, and Fund Equity $60.64) remains strong, and the Town has sufficient funds to meet the cash demands for the next six months.

As of September 30, 2025, the Town’s weighted portfolio yield for investments under management was 4.31%, which was 10 basis points above the Local Agency Investment Fund (LAIF) yield of 4.21% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 254 days versus the Town’s longer WAM of 625 days. The Town’s assets under management reflect the Town’s selection of the 1-3 year benchmark investment strategy through the Town’s investment advisor to lock in higher yields at the top of the interest rate cycle. The longer maturities are balanced with shorter-term yields available on investments held with the State’s LAIF. The Town’s weighted average rate of return on

ITEM NO. 3.

PAGE 3 OF 3
SUBJECT: Monthly Financial and Investment Report for September 2025 DATE: November 3, 2025
investments under management of 4.31% at the close of August decreased 3 basis points when compared to the August investment report.

Since September 2024, LAIF yields decreased from 458 basis points (4.58%) to 421 basis points (4.21%) through the end of September 2025. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing.

As of this report, the Federal Open Market Committee (FOMC) has enacted two rate adjustments in 2025. On September 17, the Committee lowered the federal funds range by 25 basis points to 4.00%–4.25%, citing subdued economic growth in the first half of the year and signs of softening in the labor market. A second 25 basis point reduction followed on October 29, bringing the range to 3.75%–4.00%, in response to continued labor market weakness and economic uncertainty. These adjustments align with the FOMC's objective to promote maximum employment and achieve a year-over-year inflation target of 2%.

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

The Town's investments are in compliance with the Town's Investment Policy dated March 18, 2025, and are also in compliance with the requirements of Section 53600 et seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.

CONCLUSION:

Receive the Monthly Financial and Investment Report for September 2025.

Attachments:

1. Financial and Investment Report (September 2025)

ITEM NO. 3.

Weighted Average YTM Portfolio Yield on Investments
under Management 4.31%
Weighted Average Maturity (days) 625
This Month Last Month One year ago
Portfolio Allocation & Treasurer's Cash Balances $69,933,610 $69,644,461 $67,158,455 Managed Investments $52,078,969
Local Agency Investment Fund $12,339,746
Reconciled Demand Deposit Balances $5,514,895
Portfolio Allocation & Treasurer's Cash Balances $69,933,610 Benchmarks/ References:

Town's Average Yield 4.31% 4.34% 4.45%
LAIF Yield for month 4.21% 4.25% 4.58%
3 mo. Treasury 3.93% 4.14% 4.62%
6 mo. Treasury 3.84% 3.96% 4.40%
2 yr. Treasury 3.61% 3.62% 3.64%
5 yr. Treasury 3.74% 3.70% 3.56%
10 Yr. Treasury 4.15% 4.23% 3.78%
Town of Los Gatos
Summary Investment Information
September 30, 2025
0 - 1 year
41%
1 - 2 years
17%
2 - 3 years
19%
3 - 5 years
23%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated March 18, 2025, and also in compliance with the requirements of Section 53600 at seq. of the California State Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months. 1 ATTACHMENT 1 Page 15
ITEM NO. 3.

Month YTD
Cash & Investment Balances - Beginning of Month/Period $ 69,644,460.61 $ 81,558,113.19 Receipts 4,328,104.35 20,026,953.23
Disbursements (4,038,954.77) (31,651,456.23)
Cash & Investm Cash & Investment Balances - End of Month/Period $69,933,610.19 $69,933,610.19 Portfolio Allocation Amount % of Portfolio
Max. % or $ Allowed
per State Law or Policy
BNY MM $1,015,432.36 1.58% 20% of Town Portfolio
US Treasury Notes $21,779,294.22 33.82% No Max. on US Treasuries Government Agency Debenture Notes $14,532,758.11 22.56% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $14,751,484.50 22.90% 30% of Town Portfolio Local Agency Investment Fund $12,339,746.03 19.16% $75 M per State Law Subtotal - Investments 64,418,715.22 100.02%
Reconciled Demand Deposit Balances 5,514,894.97
Total Portfolio Allocation & Treasurer's Cash Balances $69,933,610.19

0.0401

0.0388
Town of Los Gatos
Portfolio Allocation & Treasurer's Cash Balances
September 30, 2025
BNY MM

1.58%
US Treasury Notes

33.81%
Government Agency Debenture
Notes

22.56%
Corporate Medium Term Bonds

22.90%
Local Agency Investment Fund

19.16%
Portfolio Investment Allocation
$67.2 M $69.9 M
$0.0 M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
$70.0 M
$80.0 M
$90.0 M
Sep-24 Oct-24 Nov-24 Dec-24 Jan-25 Feb-25 Mar-25 Apr-25 May-25 Jun-25 Jul-25 Aug-25 Sep-25 Treasurer's Fund Balances
2

ITEM NO. 3.

September 2025 September 2025 September 2025
Beginning Deposits Interest/ Ending
Balance Realized Gain/Adj. Earnings Withdrawals Balance Non-Treasury Funds:

Cert. of Participation 2002 Ser A Reserve Fund $ 688,494.93 $ - $ 2,206.52 $ - $ 690,701.45 Note 1 Cert. of Participation 2010 Ser Lease Payment Fund 2,616.40 1,158,762.50 8.05 - 1,161,386.95 Note 2 Cert. of Participation 2002 Ser A Lease Payment Fund 14,301.65 - 38.49 - 14,340.14 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,286,188.37 - 4,510.33 - 1,290,698.70 Note 2 Total Restricted Funds: $ 1,991,601.35 $ 1,158,762.50 $ 6,763.39 $ - $ 3,157,127.24 CEPPT IRS Section 115 Trust 3,147,592.19 - 48,635.64 - $ 3,196,227.83 Note 3 Grand Total COP's and CEPPT Trust $ 5,139,193.54 $ 1,158,762.50 $ 55,399.03 $ - $ 6,353,355.07 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.

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

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

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

Town of Los Gatos
Non-Treasury Restricted Fund Balances
September 30, 2025
3

ITEM NO. 3.

July 2025 $ 238,713.97
August 2025 $ 238,367.28
September 2025 $ 259,685.13
October 2025 $ -
November 2025 $ -
December 2025 $ -
January 2026 $ -
February 2026 $ -
March 2026 $ -
April 2026 $ -
May 2026 $ -
June 2026 $ -
$ 736,766.38
Town of Los Gatos
Statement of Interest Earned
September 30, 2025
4

ITEM NO. 3.

Original Issue Market Value Maturity Yield to Interest Interest Interest Days Deposit Par Original (Discount) Market Above (Under) Purchased Date or Maturity Received Earned Earned to Institution CUSIP # Security Coupon Date Value Cost Premium Value Cost Interest Call Date or Call to Date Prior Yrs. Current FY Maturity Apple 037833DB3 Corporate Bond 2.90% 12/20/2022 1,300,000.00 1,228,591.00 (71,409.00) 1,280,461.00 51,870.00 6/21/2027 4.19% $ 102,837.22 $ 135,426.07 $ 13,498.59 629 Home Depot 437076BM3 Corporate Bond 3.00% 8/4/2022 1,000,000.00 991,960.00 (8,040.00) 994,870.00 2,910.00 1/1/2026 3.04% $ 79,750.00 $ 94,051.74 $ 8,155.29 93 FFCB 3133EN5V8 3133EN5V8 4.13% 1/17/2023 236,000.00 239,174.20 3,174.20 237,170.56 (2,003.64) 1/11/2027 3.76% $ 24,175.25 $ 21,918.24 $ 2,253.05 468 US Treasury 91282CBT7 US Treasury Note 0.75% 9/30/2022 800,000.00 712,565.18 (87,434.82) 787,848.00 75,282.82 3/31/2026 4.14% $ 18,000.00 $ 85,193.12 $ 7,806.54 182 JP Morgan Chase 46625HRS1 Corporate Bond 3.20% 9/23/2022 500,000.00 474,660.00 (25,340.00) 497,145.00 22,485.00 3/15/2026 4.70% $ 43,644.44 $ 64,505.94 $ 5,869.98 166 FHLB 3130AQF65 Gov. Agency Debenture 1.25% 11/30/2022 1,300,000.00 1,160,559.40 (139,440.60) 1,262,768.00 102,208.60 12/21/2026 4.15% $ 41,572.92 $ 130,709.25 $ 12,752.12 447 FHLB 3130APJH9 Gov. Agency Debenture 1.00% 1/17/2023 1,000,000.00 907,010.00 (92,990.00) 984,750.00 77,740.00 10/28/2026 4.17% $ 23,354.17 $ 84,829.28 $ 8,719.88 393 FFCB 3133EN5N6 Gov. Agency Debenture 4.00% 2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,708,024.00 1,292.00 1/6/2028 3.91% $ 163,955.56 $ 159,363.33 $ 16,794.30 828 American Honda 02665WED9 Corporate Bond 4.70% 5/11/2023 600,000.00 608,856.00 8,856.00 607,506.00 (1,350.00) 1/12/2028 4.34% $ 61,178.33 $ 56,288.41 $ 6,630.64 834 US Treasury 91282CEF4 US Treasury Note 2.50% 6/9/2023 1,500,000.00 1,416,626.12 (83,373.88) 1,474,800.00 58,173.88 3/31/2027 4.09% $ 86,577.87 $ 122,333.72 $ 14,966.36 547 US Treasury 91282CGA3 US Treasury Note 4.00% 6/20/2023 2,100,000.00 2,080,558.59 (19,441.41) 2,100,189.00 19,630.41 12/15/2025 4.40% $ 166,852.46 $ 186,379.78 $ 23,140.27 76 Colgate-Palmolive 194162AR4 Corporate Bond 4.60% 7/14/2023 500,000.00 504,655.00 4,655.00 508,935.00 4,280.00 2/1/2028 4.37% $ 49,002.79 $ 43,173.83 $ 5,539.74 854 FannieMae 3135G06G3 Gov. Agency Debenture 0.50% 7/14/2023 500,000.00 455,157.00 (44,843.00) 498,140.00 42,983.00 11/7/2025 4.63% $ 4,534.72 $ 42,871.33 $ 5,500.92 38 FFCB 3133EPQC2 Gov. Agency Debenture 4.63% 7/17/2023 500,000.00 501,957.50 1,957.50 503,935.00 1,977.50 7/17/2026 4.48% $ 46,250.00 $ 43,961.07 $ 5,664.45 290 FFCB 3133EPBM6 Gov. Agency Debenture 4.13% 7/14/2023 600,000.00 596,220.00 (3,780.00) 604,758.00 8,538.00 8/23/2027 4.29% $ 52,181.25 $ 50,424.13 $ 6,470.04 692 PNC Bank 69353RFJ2 Corporate Bond 3.25% 7/25/2023 1,000,000.00 921,490.00 (78,510.00) 984,560.00 63,070.00 12/23/2027 5.23% $ 64,729.17 $ 97,247.67 $ 12,672.50 814 US Treasury 91282CFU0 US Treasury Note 4.13% 7/31/2023 1,300,000.00 1,290,660.60 (9,339.40) 1,313,403.00 22,742.40 10/31/2027 4.31% $ 93,843.75 $ 107,052.11 $ 14,069.71 761 Toyota Motor Credit 89236TKL8 Corporate Bond 5.45% 8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,648,960.00 31,792.00 11/10/2027 5.16% $ 148,966.67 $ 153,725.55 $ 20,952.22 771 US Treasury 912810FE3 US Treasury Note 5.50% 10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,262,256.00 24,048.86 8/15/2028 4.76% $ 123,211.96 $ 101,335.84 $ 14,658.64 1050 Pepsico Inc 713448DF2 Corporate Bond 2.85% 10/16/2023 1,000,000.00 947,570.00 (52,430.00) 995,350.00 47,780.00 11/24/2025 5.24% $ 52,883.33 $ 91,065.84 $ 13,447.93 55 FFCB 3133EPUW3 Gov. Agency Debenture 4.75% 10/13/2023 1,000,000.00 994,338.00 (5,662.00) 1,009,510.00 15,172.00 9/1/2026 4.96% $ 89,458.33 $ 84,828.57 $ 12,466.82 336 US Treasury 91282CEW7 US Treasury Note 3.25% 10/16/2023 1,000,000.00 950,039.06 (49,960.94) 993,590.00 43,550.94 6/30/2027 4.73% $ 55,461.96 $ 78,477.53 $ 11,588.98 638 US Treasury 91282CEN7 US Treasury Note 2.75% 10/31/2023 1,300,000.00 1,214,336.39 (85,663.61) 1,282,177.00 67,840.61 4/30/2027 4.82% $ 53,625.00 $ 100,336.49 $ 15,182.50 577 US Treasury 91282CCH2 US Treasury Note 1.25% 12/21/2023 900,000.00 798,647.55 (101,352.45) 844,704.00 46,056.45 6/30/2028 3.99% $ 17,180.71 $ 51,319.84 $ 8,476.53 1004 FNMA 3135G0Q22 Gov. Agency Debenture 1.88% 12/21/2023 900,000.00 845,676.00 (54,324.00) 884,133.00 38,457.00 9/24/2026 4.22% $ 29,671.88 $ 55,770.03 $ 9,211.57 359 US Treasury 91282CFB2 US Treasury Note 2.75% 1/2/2024 1,000,000.00 960,354.91 (39,645.09) 984,450.00 24,095.09 7/31/2027 3.95% $ 43,417.12 $ 57,605.73 $ 9,724.27 669 US Treasury 91282CHE4 US Treasury Note 3.63% 1/17/2024 1,800,000.00 1,775,185.72 (24,814.28) 1,800,558.00 25,372.28 5/31/2028 3.97% $ 89,317.63 $ 102,986.91 $ 17,876.97 974 JP Morgan Chase 46647PDG8 Corporate Bond 4.85% 2/1/2024 1,400,000.00 1,396,528.00 (3,472.00) 1,418,718.00 22,190.00 7/25/2027 4.93% $ 100,739.10 $ 97,231.80 $ 17,369.56 663 US Bancorp 91159HJF8 Corporate Bond 4.55% 2/5/2024 1,000,000.00 989,200.00 (10,800.00) 1,007,850.00 18,650.00 7/22/2027 4.89% $ 66,577.67 $ 68,041.60 $ 12,250.15 660 Treasury 91282CHB0 US Treasury Note 3.63% 2/23/2024 1,175,000.00 1,151,962.92 (23,037.08) 1,173,425.50 21,462.58 5/15/2026 4.56% $ 52,189.05 $ 71,517.53 $ 13,346.07 227 FHLB 3130AXB31 Gov. Agency Debenture 4.88% 2/27/2024 1,000,000.00 1,003,060.00 3,060.00 1,004,490.00 1,430.00 3/13/2026 4.72% $ 76,104.17 $ 63,303.13 $ 11,909.79 164 FFCB 3133EP5U5 Gov. Agency Debenture 4.13% 3/28/2024 1,700,000.00 1,687,981.00 (12,019.00) 1,729,920.00 41,939.00 3/20/2029 4.28% $ 103,629.17 $ 91,219.09 $ 18,283.56 1267 US Treasury 9128285M8 US Treasury Note 3.13% 4/30/2024 1,200,000.00 1,123,832.14 (76,167.86) 1,182,000.00 58,167.86 11/15/2028 4.69% $ 39,045.34 $ 63,313.82 $ 13,673.41 1142 Cisco Systems 17275RBR2 Corporate Bond 4.85% 5/15/2024 1,000,000.00 999,130.00 (870.00) 1,026,310.00 27,180.00 1/26/2029 4.87% $ 62,106.94 $ 54,820.58 $ 12,271.27 1214 Home Depot 437076CW0 Corporate Bond 4.90% 5/17/2024 1,000,000.00 1,001,790.00 1,790.00 1,029,160.00 27,370.00 4/15/2029 4.86% $ 44,644.44 $ 54,498.76 $ 12,258.89 1293 Treasury 91282CJR3 US Treasury Note 3.75% 5/31/2024 1,200,000.00 1,154,629.02 (45,370.98) 1,204,080.00 49,450.98 12/31/2028 4.68% $ 48,708.79 $ 59,398.06 $ 13,834.48 1188 American Honda 02665WEY3 Corporate Bond 4.95% 6/27/2024 1,000,000.00 995,640.00 (4,360.00) 1,001,930.00 6,290.00 1/9/2026 5.25% $ 51,287.50 $ 52,766.88 $ 13,191.72 101 FHLB 3130B1BT3 Gov. Agency Debenture 4.88% 7/2/2024 1,150,000.00 1,150,966.00 966.00 1,158,303.00 7,337.00 6/12/2026 4.82% $ 47,341.67 $ 55,261.42 $ 14,005.65 255 Citibank 17325FBK3 Corporate Bond 4.84% 8/15/2024 1,250,000.00 1,263,062.50 13,062.50 1,280,575.00 17,512.50 7/6/2029 4.60% $ 58,963.12 $ 50,520.38 $ 14,570.14 1375 FNMA 3135G05Y5 Gov. Agency Debenture 0.75% 9/10/2024 1,100,000.00 1,010,724.00 (89,276.00) 1,038,785.00 28,061.00 10/8/2027 3.56% $ 4,766.67 $ 29,915.45 $ 9,393.25 738 US Treasury 91282CFL0 US Treasury Note 3.88% 12/3/2024 1,100,000.00 1,088,144.31 (11,855.69) 1,107,601.00 19,456.69 9/30/2029 4.12% $ 35,130.49 $ 25,813.46 $ 11,362.86 1461 FHLB 3130ATUT2 Gov. Agency Debenture 4.50% 2/12/2025 505,000.00 508,253.21 3,253.21 518,695.60 10,442.39 12/14/2029 4.35% $ 7,701.25 $ 8,337.70 $ 5,558.47 1536 FFCB 3133ER5X5 Gov. Agency Debenture 3.88% 3/12/2025 1,000,000.00 998,480.00 (1,520.00) 1,004,170.00 5,690.00 3/7/2028 3.93% $ 18,836.81 $ 11,831.34 $ 9,895.30 889 Treasury 91282CJF9 US Treasury Note 4.88% 3/31/2025 1,100,000.00 1,130,167.75 30,167.75 1,139,446.00 9,278.25 10/31/2028 4.04% $ 4,444.06 $ 11,273.90 $ 11,397.79 1127 State Street Corp 857477CD3 Corporate Bond 5.27% 4/30/2025 800,000.00 811,184.00 11,184.00 807,592.00 (3,592.00) 8/3/2026 4.04% $ 10,895.47 $ 5,565.50 $ 8,393.86 307 Freddie Mac 3134HAW33 Gov. Agency Debenture 4.75% 4/30/2025 1,000,000.00 1,005,644.00 5,644.00 1,005,600.00 (44.00) 12/18/2029 4.23% $ 6,993.07 $ 7,735.00 $ 11,665.90 1540 US Treasury 91282CNG2 US Treasury Note 4.00% 6/30/2025 660,000.00 665,184.24 5,184.24 667,887.00 2,702.76 2,163.92 5/31/2030 3.82% $ (2,163.92) $ - $ 6,388.68 1704 US Treasury 91282CMG3 US Treasury Note 4.25% 8/4/2025 825,000.00 842,308.43 17,308.43 842,696.25 387.82 381.11 1/31/2030 3.74% $ (381.11) $ - $ 4,874.31 1584 US Treasury 91282CMA6 US Treasury Note 4.13% 8/25/2025 1,200,000.00 1,218,847.77 18,847.77 1,219,596.00 748.23 11,631.14 11/30/2029 3.72% $ (11,631.14) $ - $ 4,446.68 1522 US Treasury 91282CHR5 US Treasury Note 4.00% 9/23/2025 950,000.00 967,036.38 17,036.38 960,944.00 (6,092.38) 5,576.08 7/31/2030 3.59% $ (5,576.08) $ - $ 661.47 1765 Subtotal $ 52,451,000.00 $ 51,302,711.03 $ (1,148,288.97) $ 52,584,724.91 $ 1,282,013.88 $ 19,752.25 $ 2,645,987.02 $ 3,285,546.75 $ 555,094.08 BNY MM Money Market 1,015,432.36 1,015,432.36 0.00 0.00% 1 LAIF State Investment Pool 12,339,746.03 12,363,556.57 23,810.54 4.21% 157,529.89 1 64,657,889.42 $65,963,713.84 $1,305,824.42 $19,752.25 $ 2,645,987.02 $ 3,285,546.75 $ 712,623.97 Matured Assets
US Treasury 91282CAB7 US Treasury Note 0.25% 11/15/2023 675,000.00 623,900.39 (51,099.61) 7/31/2025 4.92% $ 2,884.34 $ 51,302.62 $ 2,681.92 FHLB 3135G05X7 Gov. Agency Debenture 0.38% 6/10/2022 1,200,000.00 1,102,952.40 (97,047.60) 8/25/2025 3.04% $ 14,437.50 $ 106,169.42 $ 5,327.50 FFCB 3133ENP95 Gov. Agency Debenture 4.25% 9/30/2022 900,000.00 900,939.60 939.60 9/30/2025 4.14% $ 114,750.00 $ 104,352.97 $ 9,562.22 Freddie Mac 3137EAEX3 Gov. Agency Debenture 0.38% 5/1/2023 750,000.00 689,032.50 (60,967.50) 9/23/2025 3.97% $ 6,734.37 $ 61,146.74 $ 6,570.76 Total Investments "Matured" $ 24,142.41
Total Interest FY 24_25 Matured and Current $ 736,766.38 Maturity Profile Amount Percent
0-1 year $ 26,472,433.58 41%
1-2 years $11,058,639.08 17%
2-3 years $12,470,806.01 19%
3-5 years $ 14,656,010.75 23%
$64,657,889.42 100%
Town of Los Gatos
Investment Schedule
September 30, 2025
5

ITEM NO. 3.

Date Cusip/Id Description Transaction Type Trade Date Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction
Total
9/2/2025 3133EPUW3
FEDERAL FARM CREDIT BANK 4.75%
01SEP2026 BOND INTEREST 9/1/2025 9/1/2025 1,000,000.00 4.750% 9/1/2026 - - 23,750.00 23,750.00 9/2/2025 194162AR4
COLGATE-PALMOLIVE CO 4.6%
01MAR2028 (CALLABLE 01FEB28) BOND INTEREST 9/1/2025 9/1/2025 500,000.00 4.600% 3/1/2028 - - 11,500.00 11,500.00 9/3/2025 Cash-USD Cash-USD

SHORT TERM INVESTMENT
FUND INCOME 9/3/2025 9/3/2025 609.57 0.000% 100.00 - - 609.57 9/8/2025 3133ER5X5
FEDERAL FARM CREDIT BANK 3.875%
07MAR2028 BOND INTEREST 9/7/2025 9/7/2025 1,000,000.00 3.875% 3/7/2028 - - 19,375.00 19,375.00 9/12/2025 037833DB3 912810FE3 BOND INTEREST 9/12/2025 9/12/2025 1,300,000.00 2.900% 9/12/2027 - - 18,850.00 18,850.00 9/15/2025 3130AXB31
FEDERAL HOME LOAN BANK 4.875%
13MAR2026 BOND INTEREST 9/13/2025 9/13/2025 1,000,000.00 4.875% 3/13/2026 - - 24,375.00 24,375.00 9/23/2025 91282CHR5 USA TREASURY 4% 31JUL2030 PURCHASE 9/17/2025 9/23/2025 950,000.00 4.000% 7/31/2030 101.79 967,036.39 5,576.09 972,612.48 9/17/2025 91282CHR5 USA TREASURY 4% 31JUL2030 PURCHASE 9/17/2025 950,000.00 4.000% 7/31/2030 101.79 967,036.38 5,576.08 972,612.46 9/22/2025 3133EP5U5
FEDERAL FARM CREDIT BANK 4.125%
20MAR2029 BOND INTEREST 9/20/2025 9/20/2025 1,700,000.00 4.125% 3/20/2029 - - 35,062.50 35,062.50 9/23/2025 3137EAEX3 FREDDIE MAC 0.375% 23SEP2025 BOND INTEREST 9/23/2025 9/23/2025 750,000.00 0.000% 9/23/2025 - - 1,406.25 1,406.25 9/23/2025 3137EAEX3 FREDDIE MAC 0.375% 23SEP2025 REDEMPTION 9/23/2025 9/23/2025 750,000.00 0.000% 9/23/2025 100.00 750,000.00 - 750,000.00 9/24/2025 3135G0Q22 FANNIE MAE 1.875% 24SEP2026 BOND INTEREST 9/24/2025 9/24/2025 900,000.00 1.875% 9/24/2026 - - 8,437.50 8,437.50 9/30/2025 91282CBT7 USA TREASURY 0.75% 31MAR2026 BOND INTEREST 9/30/2025 9/30/2025 800,000.00 0.750% 3/31/2026 - - 3,000.00 3,000.00 9/30/2025 3133ENP95
FEDERAL FARM CREDIT BANK 4.25%
30SEP2025 BOND INTEREST 9/30/2025 9/30/2025 900,000.00 0.000% 9/30/2025 - - 19,125.00 19,125.00 9/30/2025 3133ENP95
FEDERAL FARM CREDIT BANK 4.25%
30SEP2025 REDEMPTION 9/30/2025 9/30/2025 900,000.00 0.000% 9/30/2025 100.00 900,000.00 - 900,000.00 9/30/2025 91282CEF4 USA TREASURY 2.5% 31MAR2027 BOND INTEREST 9/30/2025 9/30/2025 1,500,000.00 2.500% 3/31/2027 - - 18,750.00 18,750.00 9/30/2025 91282CFL0 USA TREASURY 3.875% 30SEP2029 BOND INTEREST 9/30/2025 9/30/2025 1,100,000.00 3.875% 9/30/2029 - - 21,312.50 21,312.50 Town of Los Gatos
Investment Transaction Detail
September 30, 2025
6

ITEM NO. 3.

CUSIP Security description Maturity
date Par/Shares Total market value ($) S&P rating Moody's rating Insight ESG
rating Environment Social Governance
02665WEY3 AMERICAN HONDA FINANCE 4.95% 09JAN2026 1/9/2026 1,000,000 1,013,039 A- A3 3 3 4 3 02665WED9 AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 600,000 613,541 A- A3 3 3 4 3 037833DB3 APPLE INC 2.9% 12SEP2027 (CALLABLE 12JUN27) 9/12/2027 1,300,000 1,282,094 AA+ Aaa 5 2 5 5 17275RBR2 CISCO SYSTEMS INC 4.85% 26FEB2029 (CALLABLE 26JAN29) 2/26/2029 1,000,000 1,030,713 AA- A1 2 1 3 3 17325FBK3 CITIBANK NA 4.838% 06AUG2029 (CALLABLE 06JUL29) 8/6/2029 1,250,000 1,289,274 A+ Aa3 3 1 2 4 194162AR4 COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28) 3/1/2028 500,000 510,719 A+ Aa3 3 3 3 3 437076CW0 HOME DEPOT INC 4.9% 15APR2029 (CALLABLE 15MAR29) 4/15/2029 1,000,000 1,051,201 A A2 3 3 3 2 437076BM3 HOME DEPOT INC 3% 01APR2026 (CALLABLE 01JAN26) 4/1/2026 1,000,000 1,009,759 A A2 3 3 3 2 46625HRS1 JPMORGAN CHASE & CO 3.2% 15JUN2026 (CALLABLE 15MAR26) 6/15/2026 500,000 501,787 A A1 3 2 3 4 46647PDG8 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL27) 7/25/2028 1,400,000 1,430,772 A A1 3 2 3 4 713448DF2 PEPSICO INC 2.85% 24FEB2026 (CALLABLE 24NOV25) 2/24/2026 1,000,000 998,181 A+ A1 3 2 2 4 69353RFJ2 PNC BANK NA 3.25% 22JAN2028 (CALLABLE 23DEC27) 1/22/2028 1,000,000 990,572 A A2 3 3 3 3 857477CD3 STATE STREET CORP 5.272% 03AUG2026 (CALLABLE 03JUL26) 8/3/2026 800,000 814,258 A Aa3 2 1 2 2 89236TKL8 TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 1,600,000 1,682,755 A+ A1 3 1 2 5 91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 7/22/2028 1,000,000 1,016,162 A A3 3 3 4 3 Total Corporate / weighted average 14,950,000 15,234,828 3 2 3 3 ESG ratings are from 1 to 5, with 1 as the highest rating and 5 as the lowest. All ratings are weighted by industry rankings, based on the importance of the category within the individual industry

TOWN OF LOS GATOS, CA
Insight ESG ratings as of September 30, 2025
7

ITEM NO. 3.

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

GENERAL FUND
Non-Spendable:

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

Pension 3,090,731 - - - - - 3,090,731
Land Held for Resale - - - - - - -
Committed Fund Balances:

Budget Stabilization 7,870,639 - - - - - 7,870,639
Catastrophic 7,870,639 - - - - - 7,870,639
Pension/OPEB 1,000,000 - - - - - 1,000,000
Measure G District Sales Tax - - - - - - -
Assigned Fund Balances:

Open Space 410,000 - - - - - 410,000
Sustainability 140,553 - - - - - 140,553
Capital/Special Projects 1,983,271 - - - - - 1,983,271
Carryover Encumbrances 6,367 - - - - - 6,367
Compensated Absences 1,519,243 - - - - - 1,519,243
ERAF Risk Reserve - - - - - - -
Market Fluctuations 1,340,098 - - - - - 1,340,098
Council Priorities - Economic Recovery - - - - - - -
Unassigned Fund Balances:
111 Other Unassigned Fund Balance Reserve (Pre YE distribution) 10,372,775 (2,787,310) 2,258,639 (3,436,384) - - 6,407,720 General Fund Total 35,763,316 (2,787,310) 2,258,639 (3,436,384) - - 31,798,261 * Interfund transfers and Council Priorities/Economic Recovery funding allocation to be performed as part of the fiscal year end closing entries.

September 2025 Prior Year
Carryforward
7/1/2025*
Increase/
(Decrease)
July-August
Estimated Fund
Balance
9/30/2025*
8

ITEM NO. 3.

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

SPECIAL REVENUE
211/212 CDBG 166,653 - - - - - 166,653
222 Urban Runoff (NPDES) 664,168 10,117 13,641 (9,962) - - 677,964 231-236 Landscape & Lighting Districts 193,606 (1,149) - (3,063) - - 189,394 251 Los Gatos Theatre 381,120 22,805 15,070 (4,381) - - 414,614 261-264,269 Library Trusts 559,745 57,863 - (3,325) - - 614,283 Special Revenue Total 1,965,292 89,636 28,711 (20,731) - - 2,062,908

CAPITAL PROJECTS
411 GFAR - General Fund Appropriated Reserve 16,974,946 (49,736) 94,879 (864,698) - - 16,155,391 412 Community Center Development 819,604 - - - - - 819,604 421 Grant Funded Projects (1,577,430) (292,361) 1,181,467 (171,679) - - (860,003) 461-463 Storm Basin Projects 2,825,234 37,721 15,414 (8,966) - - 2,869,403 471 Traffic Mitigation Projects 676,482 - - - - - 676,482 472 Utility Undergrounding Projects 3,763,913 - - - - - 3,763,913 481 Gas Tax Projects 2,130,548 323,648 154,785 (692,443) - - 1,916,538 Capital Projects Total 25,613,297 19,272 1,446,545 (1,737,786) - - 25,341,328

INTERNAL SERVICE FUNDS
611 Town General Liability 208,746 (1,469,385) - (13,056) - - (1,273,695) 612 Workers Compensation 1,259,972 (503,258) 32,659 (60,177) - - 729,196 621 Information Technology 2,585,103 (336,982) 9,140 (13,867) - - 2,243,394 631 Vehicle & Equipment Replacement 3,890,428 - - (81,556) - - 3,808,872 633 Facility Maintenance 820,099 (148,124) 24,334 (107,571) - - 588,738 Internal Service Funds Total 8,764,348 (2,457,749) 66,133 (276,227) - - 6,096,505 Trust/Agency
942 RDA Successor Agency (2,916,323) (1,742,853) - (132) - - (4,659,308) Trust/Agency Fund Total (2,916,323) (1,742,853) - (132) - - (4,659,308) Total Town 69,189,930 (6,879,004) 3,800,028 (5,471,260) - - 60,639,694 * Interfund transfers and Council Priorities/Economic Recovery funding allocation to be performed as part of the fiscal year end closing entries.

Deposit Accounts of Interest:
111-23541 General Plan Update deposit account balance $482,196.38 111-23521 BMP Housing deposit account balance $3,723,190.79 Prior Year
Carryforward
7/1/2025*
Increase/
(Decrease)
July-August
September 2025 Estimated Fund
Balance
9/30/2025*
9

ITEM NO. 3.

PREPARED BY: Heather St. John
Senior Administrative Analyst
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: 11/18/25
ITEM NO: 4
DATE: November 3, 2025
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to execute the Second Amendment to the Agreement with Turbo Data Systems, Inc., which extends parking citation and permit management services through December 1, 2028, and increases the contract by $100,000, for a total not-to-exceed amount of $306,000.

RECOMMENDATION: Authorize the Town Manager to execute the Second Amendment to the Agreement with Turbo Data Systems, Inc., which extends parking citation and permit management services through December 1, 2028, and increases the contract by $100,000, for a total not-to-exceed amount of $306,000.

FISCAL IMPACT:

Funding for this contract extension is available within the Fiscal Year 2025-26 Operating Budget.

Ongoing annual payments will be requested through future fiscal year budget processes STRATEGIC PRIORITIES:

Enhance downtown parking accessibility and convenience for residents and visitors. (Goal:

Quality Public Infrastructure)
BACKGROUND:

On December 1, 2017, the Town entered into an agreement with Turbo Data Systems, Inc. for parking citation management and permit processing services. The original five-year contract was set to expire on December 1, 2022, but was extended for an additional three years, ending December 1, 2025. Staff now seeks approval for a second extension through December 1, 2028, with an estimated additional cost of $100,000 over the three-year period.

ITEM NO. 4.

PAGE 2 OF 2
SUBJECT: Approve a Second Amendment to an Agreement for Services with Turbo Data Systems, Inc.

DATE: November 3, 2025
DISCUSSION:

Turbo Data Systems provides a cloud-based citation and permit management platform that includes:
 Real-time access to citation information (including photographs) via an online portal  Online payment processing
 An online appeals submission process
 Enhanced data reporting tools
For permit parking management, the system supports:
 License plate recognition technology
 Online application and issuance (including residence verification)  Fee collection for Residential Permits and Downtown Employee parking permits The implementation of Turbo Data Systems has resulted in a more streamlined, publicly accessible, and efficient parking management program. The system has increased operational efficiency and improved user access and transparency.

Staff recommends continuing services with Turbo Data Systems to maintain these benefits and further improve parking operations.

CONCLUSION:

Staff recommends the Town Council authorize the Town Manager to execute the Second Amendment to the agreement with Turbo Data Systems, Inc., extending services through December 1, 2028, and increasing the contract amount by $100,000, for a total not-to-exceed amount of $306,000 over the full contract term (2017–2028).

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Original Agreement

2. First Amendment to Turbo Data Systems Inc. Agreement

3. Second Amendment to Turbo Data Systems Inc. Agreement

ITEM NO. 4.
lrr_8..7\bAGREEMENT FOR PROCESSING

OF PARKING CITATIONS, PERMITS AND MOBILE DEVICES
This Agreement is entered into by and between Turbo Data Systems, lnc. (TDS), a California Corporation, and the Town of Los Gatos, (hereinafter "Customer").

Whereas, TDS and the Customer desire to enter into an agreement whereby TDS will provide services and equipment related to the processing of parking citations, provide a permit management system, and provide mobile devices for the Customer pursuant to the terms and conditions set forth herein. ln consideration of the mutual covenants, conditions, representations and warranties contained herein the parties hereby agree as follows:

1. PURPOSE. The purpose of this Agreement is for TDS to process parking citations, provide permit processing and provide mobile devices and support for the Customer in a timely manner.

2. SCOPE OF SERVICES. When and as directed by the Customer, TDS shall perform the following services:

See Attached Scope of Services

3. TERM. This agreement shall become effective for a period of five years, renewing annually thereafter upon mutual consent, starting December 1, 2017. /

4. CONSIDERATION. ln consideration for services performed by TDS as provided in this agreement, Customer shall pay TDS pursuant to the terms set forth in Exhibit "A" which is attached hereto and incorporated herein by this reference.

5. PAYMENT OF FEES. Charges determined on the basis set forth in Exhibit "A" shall be billed on a monthly basis in arrears and payment therefore shall be made within thirty (30) days after submission of each separate invoice.

6. ACCOUNTING RECORDS. Records of the citations processed by TDS shall be available for examination by the Customer or its authorized representative(s) at a time agreeable to the Customer and TDS within one week following a request by the Customer to examine such records. Failure by TDS to permit such examination within one (1) week of a request shall permit the Customer to withhold all further payments until such examination is completed unless the Customer in writing authorizes an extension of time for examination.

7. TIME OF PERFORMANCE. Time is of the essence, and TDS shall perform the services required by this a8reement in an expeditious and timely manner so as not to unreasonably delay the purpose of this agreement as set forth in Sections 1 and 2.

8. INDEPENDENT CONTRACTOR. At all times during the term of this agreement, TDS shall be an independent contractor and shall not be an employee ofthe Customer. The Customer shall have the rlght to control TDS only insofar as the results of TDS'S services rendered pursuant to this agreement; however, Customer shall not have the right to control the means by which TDS accomplishes the services rendered pursuant to this agreement.

9. FACILITIES AND EQUIPMENT. TDS shall, at its own cost and expense, provide all facilities and equipment 1 tHH.------
Attachment 1
DocuSign Envelope ID: F00A397A-6BC1-46EC-9F91-DBBF2F667441

ITEM NO. 4.

AGREEMENT FOR PROCESSING

OF PARKING CITATIONS, PERMITS AND MOBITE DEVICES
that may be required for performance of the servlces required by this agreement

11. INDEMNIFICATION BY CUSTOMER. TDS shall use due care in processing work of the Customer. Any errors shall be corrected by TDS at no additional charge to the Customer. TDS shall be entitled to reimbursement from the Customer for any expenses incurred by TDS for the correction of any erroneous information provided by the Customer and TDS shall not be responsible for Customers' losses and expenses resulting from erroneous source materials provided by the Customer. Neither party shall be liable to the other for any indirect or consequential losses or damages resulting from any errors within the scope of this Section 11.

12. FAIR EMPLOYMENT PRACTICES/EQUAL OPPORTUNIry ACTS. ln the performance of this agreement, TDS shall comply with all applicable provisions of the California Fair Employment Practices Act (California Labor Code Sections (410 et seq.) and the applicable equal employment provisions of the Civil Rights Act of 1964 (42 U.S.C. 200e 217), whichever is more restrictive.

13. AGENCY. Except as Customer may specify in writing TDS shall have no authority, expressed or implied, to act on behalf of the Customer in any capacity whatsoever as an agent. TDS shall have no authority, expressed or implied, pursuant to this agreement to bind Customer to any obligation whatsoever.

14. CHANGES lN LAW. Should there be any changes in the law applicable to the processing of parking citations which would require material changes in the method of the processing as contemplated in this agreement, or materially reduce or eliminate the amount of revenue received by the Customer from parking citations, this agreement shall terminate on the date such law becomes effective, provided either party gives sixty (60) days' notice of termination. Any changes in the processing of parking violations as a result of changes in the law or DMV regulations affecting such violations, which do not materially add to the cost of processing such citations by TDS shall be implemented by TDS at the request of the Customer, provided however, that the cost of such implementation does not exceed the fee paid to TDS for performing such services. lf any such change results in the cost of processing citations exceeding the amounts provided for in 2 10. TDS agrees to defend, indemnify, hold free and harmless the Customer, its elected offlcials, officers, agents and employees, at contractor's sole expense, from and against any and all claims, actions, suits or other legal proceedings brought against the Customer, its elected officials, officers, agents and employees arising out of the performance of the contractor, its employees, and/or authorized subcontractors, of the work undertaken pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence or wrongdoing by the contractor, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, errors, omissions or misconduct of the contractor, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the Customer, its elected officials, officers, agents and employees based upon the work performed by the contractor, its employees, and/or authorized subcontractors under this Agreement, whether or not the contractor, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the contractor shall not be liable for the defense or indemnification of the Customer for claims, actions, complaints or suits arising out of the sole active negligence or willful misconduct of the Customer. This provision shall supersede and replace all other indemnity provisions contained either in the Customer's speciflcations or contracto/s proposal, which shall be of no force and effectDocuSign Envelope ID: F00A397A-6BC1-46EC-9F91-DBBF2F667441

ITEM NO. 4.

AGREEMENT FOR PROCESSING
OF PARKING CITATIONS, PERM]TS AND MOBILE DEVICES
Section 4 and the Customer declines to amend this agreement to provide for the payment of such increased costs, the agreement shall terminate as of the effective date of the change in the law or regulations.

15. OWNERSHIP OF SOFTWARE. Customer acknowledges that the software and software programs used by the Customer or used for the Customer's benefit which were developed by TDS are the sole property of TDS and the Customer obtains no right or interest in the software by virtue of this agreement.

15. OWNERSHIP OF DOCUMENTS. All citations and other physical documents pertaining to the Customer (payment documents, appeal documents, etc.), shall be the property of the Customer. Copies of said documents shall not be made available by TDS to any individual or organization without the prior written approval of Customer, except as required by law. TDS agrees to provide Customer, in computer readable form, a copy of all data files to service its citations at the conclusion of this Agreement.

17. FORCE MAJEURE. Neither party shall be responsible for delays or failure in performance resulting from acts beyond the control of such parties. Such acts shall include, but are not limited to, Acts of God, strikes, riots, acts of war, epidemics, fire, communication line failure, earthquakes or other disasters.

18. TERMINATION. This aBreement may be terminated by either party upon ninety (90) days written notice after the original term of the agreement. At such time, TDS agrees to provide Customer, in computer readable form, a copy of all data files to service its citations.

1.9. NOTICE. Whenever it shall be necessary for either party to serve notice on the other respecting this agreement, such notice shall be served by certified mail addressed to:

TDS: Turbo Data Systems, lnc.
18302 lrvine Blvd, Suite 2(x)
Tustin, cA 92780
Roberta J. Rosen, President
CUSTOMER: Town of Los Gatos
110 E. Main Street
Los Gatos, CA 95030
unless and until different addresses may be furnished in writing by either party to the other, and such notice shall be deemed to have been served within seventy-two (72) hours after the same has been deposited in the United States Post Office by certified mail. This shall be valid and sufficient service of notice for all purposes.

20. EXTENT OF AGREEMENT. This agreement represents the entire and integrated agreement between Customer and TDS and supersedes any and all prior negotiations, representations or agreements, either written or oral. This agreement may be amended only by written instrument signed by both Customer and TDS. This agreement may only be assigned with the express written consent of each of the parties hereto. ln the event that any provision hereof is deemed to be illegal or unenforceable, such a determination shall not affect the validity or enforceability of the remaining provisions hereof, all of which remain in full force and effect.
3 DocuSign Envelope ID: F00A397A-6BC1-46EC-9F91-DBBF2F667441

ITEM NO. 4.

AGREEMENT FOR PROCESSING
OF PARKING CITATIONS, PERMlTS AND MOBILE DEVICES

21. LITIGATION COSTS. lf any legal action or any other proceeding is brought to enforce the terms of this agreement, or because of an alleged dispute, breach, or misrepresentation in the connection with any of the provisions of this agreement, the successful or prevailing party or parties shall be entitled to recover their reasonable attorneys' fees and other costs incurred in that action or proceeding, including the costs of appeal in addition to any other relief to which it or they may be entitled.

22. EFFECTIVE DATE OF THIS AGREEMENT
after December 1, 2017.

This agreement, made in duplicate, shall be effective from and Executed on this _ day of
TOWN OF tOS GATOS
By: See Attached Si gnature Page
TURBO DATA SYSTEMS, INC.

By: See Attached Signature Page
Roberta J. Rosen
President
4 DocuSign Envelope ID: F00A397A-6BC1-46EC-9F91-DBBF2F667441

ITEM NO. 4.

DocuSign Envelope ID: F00A397A-6BC1-46EC-9F91-DBBF2F667441

ITEM NO. 4.

AGREEMENT FOR PROCESSING

OF PARKING CITATIONS, PERMITS AND MOBITE DEVICES
EXHIBIT .,A"
PARKING €ITATION PROCESSING
Basic Processing Services - Automated Citations
Manual Citations
Monthly Minimum
Notice Processing Services
Notices, initial review letters, other correspondence
Out of state Processing
Administrative Adiudication Processing
Paperless Appeals (eAppeals and Scanning)
Web Payments - Credit Card Processing
Franchise Tax Board Offset Program
includes postage
Bank Management
Process all parking deposits
Send monthly surcharge check
Write TDS check for services
Monthly reconciliation
Monthly check to Agency for balance of funds
55 fee per NSF and refund check
So.40
So.40
waived
S0.80/letter mailed
25% of amt collected
$1.25 per appeal
included with Adjudication

53.95 Fee Paid by Violator /
No Charge to Agency
25% of amt collected
S2.fi/letter mailed
plus 15% of amount collected
S75 per month plus bank fees y'
Fee lncreases:

Postal Rate lncrease Offset - Fees will increase immediately to offset the amount of any postal increase.

Annual CPI lncrease - For each additional year that this agreement continues per paragraph 3, the cost per item shall be increased according to the CPI for the previous 12 month period. 5 eXorbrt A
ICS Delinquent Collections
DocuSign Envelope ID: F00A397A-6BC1-46EC-9F91-DBBF2F667441

ITEM NO. 4.

AGRECMENT FOR PROCESSING
OF PARKING CITATIONg PERMITS AND MOBITE DEVICES
MOBItE DEVICES with ticketPRO software
57 Active ticketPRo Magic Lease (5 yea., 3 units at S12o/month/unit = Early Termination Fee: $55/month/unit for the remainder ofthe lease term v
One Time Setup/Configuration included
Monthly Communications and Support included
Parking Citation ticket stock 5,q)0 citations = 5400
5,0fi) envelopes = S4fl)
sr"{,*.
6 DocuSign Envelope ID: F00A397A-6BC1-46EC-9F91-DBBF2F667441

ITEM NO. 4.

AGREEMENT FOR PROCESSING

OF PARKING CITATIONS, PERMITS AND MOBITE DEVICES

PERMIT PROCESSING
,/
PfrOCFSST$G FEES * PERTV,TT MANAAEMENT
Arutaal k*wnce
2"OAO - 5,M
DNE ff$E STAfrTAP TCIST $r,tuta
Includm: Database Creation. Sy$em Setup cf Tables, mject Managernrrt Okrt Approryd, W*-Based trainirq, Web Sih Custornizatitrr
{$frat rHL Y sEfr vrcEfcLfrafi-Hag TING Ff E $2sa
This fe*r wil[ cor$er *p basic nraintenanre and anailabilfy of t]E qfstern fs the puilic ard tre Cty.

Al*o Inrlutles:

Portal Account Registration
Hirp Permit @licatbfrs by tuHic A U$oading of Docurnents lnrrentory Stock Managenrent
Albws Maile#in or OIC Permit Applkatisrs
Web-Based Payment
P0 Bo,',( estabiidled by TDS for Mailed-in Ap$irations
All other ctrr#porderre $rill be rnailed or sranrxd Hr,tdeen TDS ard $te City "Self-Srvire" InBrnet access 2417 fu tlx prHic to view their perrnit informatfrrt fuire SurFport via enrail 8am-5prn l.'torday-Friday (excltdirry l+didaF) $x*tl# pw pnnit Feruat F*
' Fhysical tffi; fi&Dn-Diqatalrermits
$0"75 px Pennit Online {Digital} tur'rlr,it - Na freview - ltla Fulfrllnrerz,t r Mrh:als FDf Fennits
+$ZOO per Pwl*tit Pen*it {vlatx;al €xtry/Inrprt by TDS
r Incltdes docLrnpnt valldation
$1.5o lrerSrconit +
frrct clas* p*stage FUT- F IL LI*,EN T SER W C E5
TDS will assign app'oved Fermib ard deliver via mail with bter' Pen n it Stac k y' Su ytp li*s Suppliee{ by Agetry
1 DocuSign Envelope ID: F00A397A-6BC1-46EC-9F91-DBBF2F667441

ITEM NO. 4.

AGREEMENT FOR PROCESSING

OF PARKING CITATIONS, PERMITS AND MOBILE DEVICES
v
OTHEfr L ETTE R C0.frRESPtCI$lD€NCE $f perleifer * Uuf, dass Stostage
This fee will rcryer the maili'ng of a sirqle pa6" of infornnation, such as a sim$e rersral letter or a reffion letter, etr. Otler mailirqs outside af the fulfilmert proress ran be rxryotiated. trennit Pracessing Sank Managenrcnt "$58perruorffi
F/rrs furlr feeqlrtrmrgrr'
. Proress all permit deposits into a separate account sefup for Aqency " Wnite a cherk to TDS for services rendered
. Reronrile the account rnonthly
' Provide rnonthly reconciliation of all activlties in the account " \{Irite a rheck to Agency monthly for the balance of the funds . $5 fee per NSF and Refurd check
" trlote: Reduced to $25 per month if TDS Bank Managernent is already established Credit Card Paynrcnts {Intemet} Ho Charge tCI Agenry
A conrrenierre fue cf 4o/a af lfie anrount paid is rharged b *te rufurs for this servire. This fee {overs the rwt of ofigoing mainknance, support ard enharrernents of t}te ncb payrnut system, ard indr.des daily and murthly reronciliation of all paynents. Optionalty, dre Agency may cff,lose b pay ftis fee. {Rle wbjec{ to rhange).
cus r0 *rra rrfrN c HA R $ E5 { a PTroN A L ) $12o PEfr Hfrafr B
DocuSign Envelope ID: F00A397A-6BC1-46EC-9F91-DBBF2F667441

ITEM NO. 4.
"55"$).&/5


ITEM NO. 4.

ATTACHMENT 3

AMENDMENT TO AGREEMENT
This SECOND AMENDMENT TO AGREEMENT is dated for identification this 3 rd day of November,
2025, and amends that certain agreement for processing of parking citations and parking permit management dated December 1, 2022, made by and between the Town of Los Gatos, ("Town,") and Turbo Data Systems, Inc. (“Consultant.”)

RECITALS
A. Town and Consultant entered into an agreement for processing of parking citations and parking permit management on December 1, 2017, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Attachment 1 to this Amendment.

B. Town and Consultant entered into an amendment for processing of parking citations and parking permit management on December 1, 2022, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Attachment 2 to this Amendment.

C. Town and Consultant wish to extend the term of the agreement until December 1, 2028.

AMENDMENT

1. Item 3. TERM is now amended by mutual consent to extend the term by three additional years until December 1, 2028.

2. The compensation amount is increased by $100,000 for a not-to-exceed amount of $306,000.

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

Town of Los Gatos Approved as to Consent:

By: _______________________________ By:______________________________ Chris Constantin, Town Manager Roberta Rosen, President Department Approval:
_______________________________________
Jamie Field
Chief of Police

ITEM NO. 4.

Approved as to Form: Attest:
______________________________ ______________________________ Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk

ITEM NO. 4.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 11/18/2025
ITEM NO: 5
DATE: November 13, 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 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. Zone Change Application Z-23-005. Categorically Exempt Pursuant to CEQA Guidelines 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: Adopt an Ordinance of the Town Council of the Town of Los Gatos effecting a Zone Change from O (Office) to R-1:8 (Single-Family Residential, minimum lot size of 8,000 square feet) on property located at 14331 Capri Drive.

FISCAL IMPACT:

There is no fiscal impact associated with this action. Approving a Zone Change application would not in itself result in an impact on the Town’s budget.

STRATEGIC PRIORITY:

Not Applicable.

BACKGROUND:

ITEM NO. 5.

PAGE 2 OF 2
SUBJECT: 14331 Capri Drive/S-24-043, Z-23-005
DATE: November 13, 2025
On November 4, 2025, the Town Council considered and voted unanimously to 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) on property located at 14331 Capri Drive (APN 406-32- 004). The Ordinance (Attachment 1) will amend the zoning classification of the subject property as noted above, and adoption of the Ordinance would finalize the decision. The ordinance will take effect 30 days after its adoption.

COORDINATION:

This report was coordinated with the offices of the Town Manager and Town Attorney.

ENVIRONMENTAL ASSESSMENT:

This is a project as defined under CEQA, but is Categorically Exempt pursuant to Section 15061(b)(3): Common Sense Exemption. No significant effect on the environment will occur since the zone change activity simply proposes to change the zoning classification of a property to be consistent with the underlining General Plan Land Use Designation. A Notice of Exemption will not be filed.

ATTACHMENT:

1. Draft Zone Change Ordinance

ITEM NO. 5.
1 of 3

DRAFT ORDINANCE

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.

THE TOWN COUNCIL OF THE TOWN OF LOS GATOS DOES ORDAIN AS FOLLOWS:

WHEREAS, the applicant, Gordon K. Wong, proposes to demolish the existing singlefamily residence, construct a new single-family residence (S-24-043), and change the zoning classification of the property from O (Office) to R-1:8 (Single-Family Residential, minimum lot size of 8,000 square feet) of property located at 14331 Capri Drive, APN 406-32-004 (Z-23-005); WHEREAS, the existing property is zoned O, which is inconsistent with the Low Density Residential General Plan Land Use Designation for this property, which provides for “singlefamily residential properties located on generally level terrain;” WHEREAS, the proposed new single-family residence necessitates this zone change as single-family residential uses are not an allowed use in the O zoning classification; WHEREAS, Government Code Section 65860 requires that zoning be consistent with General Plan Land Use Designations;
WHEREAS, staff recommended approval of the zone change from O (Office) to R-1:8 (Single-Family Residential, minimum lot size of 8,000 square feet) in order to be consistent with the General Plan, current use, proposed use, and surrounding neighborhood; WHEREAS, the Planning Commission held a duly noticed public hearing on September 10, 2025, at which time the Commission considered the public testimony, the Staff Report prepared for that meeting, and all other documentation related to the Zone Change, made findings and forwarded a recommendation of approval to the Town Council; WHEREAS, this matter came before the Town Council for public hearing on November 4, 2025, and was regularly noticed in conformance with State and Town law; and WHEREAS, the Town Council received testimony and documentary evidence from the applicant and all interested persons who wished to testify or submit documents. The Town Council considered all testimony and materials submitted, including the record of the Planning Commission proceedings and the packet of materials contained in the Council Agenda Report for their meeting on November 4, 2025, along with any and all subsequent reports and materials prepared concerning this application.

Draft Ordinance to
be modified by Town
Council deliberations
and direction.

ATTACHMENT 1 Page 40
ITEM NO. 5.
2 of 3
NOW, THEREFORE, BE IT ORDAINED, by the Town Council of the Town of Los Gatos as follows:

SECTION I. Findings.

The Town Council of the Town of Los Gatos does hereby declare, determine, and order that the following findings are made by the Town Council of the Town of Los Gatos:

Finding for the California Environmental Quality Act (CEQA):

1. The proposed Zone Change application (Z-23-005) is exempt pursuant to CEQA, Section 15061(b)(3), because it can be seen with certainty that it will not significantly affect the physical environment in that it aligns the regulations with the existing land use. The associated Architecture and Site Application (S-24-043) for construction of a new residence and site grading is Categorically Exempt pursuant to CEQA, Section 15303: New Construction.

Finding for consistency with the Town’s General Plan:

1. The proposed Zone Change is consistent with the General Plan and its Elements in that the proposed zoning is consistent with the existing General Plan Land Use Designation.

SECTION II. Zone Change.

The Zoning Map in the Town Code of the Town of Los Gatos is hereby amended to change the zoning of the property at 14331 Capri Drive (Santa Clara County Assessor Parcel Number 406-32-004) as shown on the map attached hereto as Exhibit A, and is part of this Ordinance, from O (Office) to R-1:8 (Single-Family Residential, minimum lot size of 8,000 square feet).

SECTION III. 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.

ITEM NO. 5.
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SECTION IV. CEQA.

Adopting this Ordinance is not a project subject to CEQA because it can be seen with certainty that it will not impact the environment in that it aligns the regulations with the existing land use (CEQA Section 15061(b)(3)).

SECTION V. Publication.

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 VI. Effective Date.

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. This Ordinance was introduced at a regular meeting of the Town Council of the Town of Los Gatos on the 4 th day of October
2025, and adopted by the Town Council of the Town of Los Gatos at its regular meeting on the 18th 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. 5.

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ITEM NO. 5.

VASONA CT

WINCHESTER CI

CAPRI DR

KNOWLES DR

WINCHESTER BLVD

TOWN OF LOS GATOS
Application No.

Change of zoning map amending the Town Zoning Ordinance.

Zone Change From: O To: R-1:8
Prezoning
Z-23-005 A.P.N. # 409-32-004
Forwarded by Planning Commission
Approved by Town Council
Clerk Administrator
Date:

Mayor
Date:

Ord:
§
14331 Capri Drive

EXHIBIT A

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ITEM NO. 5.