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. Mayor’s Recognitions
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. Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)
1. Approve the Minutes of the September 1, 2026, Closed Session Town Council Meeting.
RECOMMENDATION: Approve the Minutes of the September 1, 2026, Closed Session Town Council Meeting.
TOWN OF LOS GATOS
COUNCIL MEETING AGENDA
SEPTEMBER 15, 2026
110 EAST MAIN STREET AND TELECONFERENCE
TOWN COUNCIL CHAMBERS
7:00 PM
Rob Moore, Mayor
Maria Ristow, Vice Mayor
Mary Badame, Council Member
Matthew Hudes, Council Member
Rob Rennie, Council Member
2. Approve the Minutes of the September 1, 2026, Town Council Meeting.
RECOMMENDATION: Approve the Minutes of the September 1, 2026, Town Council Meeting.
3. Receive the Monthly Financial and Investment Report for July 2026 and Corrected Investment Report for June 2026.
RECOMMENDATION: Receive the Monthly Financial and Investment Report for July 2026 and corrected Investment Report for June 2026.
4. Authorize the Town Manager to Execute a Second Amendment to the Agreement for Services for Janitorial Services with Frank and Grossman Landscape Contractors, Inc.
Increasing Fiscal 2026-27 Compensation by $5,860.35 to Reflect a 3% Consumer Price Index (CPI) Increase and to Add CPI Increases to Future Years.
RECOMMENDATION: Authorize the Town Manager to Execute a Second Amendment to the Agreement for Services with Frank and Grossman Landscape Contractors, Inc. to increase the Fiscal Year 2026-27 Compensation by $5,860.35 to reflect a 3% CPI increase and to add CPI increases to future years.
5. Approve a First Amendment to the Agreement for Heating Ventilation and Air Conditioning Maintenance and Repair Services with Air Systems Inc. to Increase Fiscal Year 2025-26 Compensation by $4,122 for a Total Year Two Compensation of $108,442.
RECOMMENDATION: Approve a First Amendment to the Agreement for Services with Air Systems Inc. to retroactively increase Fiscal Year 2025-26 compensation by $4,122 for services already performed, increase the total year two compensation to $108,442, authorize payment of properly documented invoices within the amended contract amount, and authorize the Town Manager to execute the amendment.
6. Authorize the Town Manager to Execute an Agreement for Professional Services with Ghirardelli Associates, Inc., Effective upon Execution and through June 30, 2031, to Support the Parks and Public Works Department Land Development Application Reviews and Inspections in an Amount Not to Exceed $1,000,000.
RECOMMENDATION: Authorize the Town Manager to execute a pass-through professional services agreement with Ghirardelli Associates, Inc., effective upon execution and through June 30, 2031, to support the Parks and Public Works Department land development application reviews and associated inspections in an amount not to exceed $1,000,000.
7. Authorize the Town Manager to Execute an Agreement for Professional Services with Haley & Aldrich, Inc., Effective Upon Execution and through June 30, 2031, to Support the Parks and Public Works Department Land Development Application Reviews and Inspections in an Amount Not to Exceed $1,000,000.
RECOMMENDATION: Authorize the Town Manager to execute a pass-through professional services agreement with Haley & Aldrich, Inc., effective upon execution and through June 30, 2031, to support the Parks and Public Works Department land development application reviews and associated inspections in an amount not to exceed $1,000,000.
8. Authorize the Town Manager to Execute an Amendment to the Agreement for Consultant Services with CSG Consultants, Inc. to Extend the Term and Increase the NotTo-Exceed Amount.
RECOMMENDATION: Authorize the Town Manager to execute a first amendment to the Agreement for Consultant Services with CSG Consultants, Inc. (“CSG”) to extend the period of performance to June 30, 2030 and increase the not-to-exceed value to $1,000,000.
9. Adopt a Resolution Rescinding Resolution 2024-046 and Amending the Appendices to the Town Conflict of Interest Code Section 2.30.610.
RECOMMENDATION: Adopt a resolution rescinding Resolution 2024-046 and amending the appendices to the Town Conflict of Interest Code, Section 2.30.610.
10. Approve and Ratify the Accounts Payable Check Registers and Payroll Report.
RECOMMENDATION: Approve the Accounts Payable Check Registers dated August 28, 2026, and September 4, 2026, and ratify and approve the Payroll Report dated September 4, 2026.
11. Authorize the Town Manager to Execute a Fifth Amendment to the Agreement for Consultant Services with AMS Electric LLC (dba Prime Electric LLC) for the Library Battery Power Supply Project.
RECOMMENDATION: Authorize the Town Manager to execute a Fifth Amendment to the Agreement for Consultant Services with AMS Electric LLC (dba Prime Electric LLC) to extend the term and time of performance through January 29, 2027, for the Library Battery Power Supply Project (4118721, 4218721; CIP 821-2505).
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. Town resources may not be used to facilitate audio or visual presentations. 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.)
OTHER BUSINESS (Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)
12. Receive and Accept the Saratoga Police Services Transition Study and Independent Cost Review; Approve the Proposed Regional Law Enforcement Services Partnership Framework, Financial Basis, and Agreement in Substantial Form; and Authorize the Town Manager to Continue Discussions with the City of Saratoga and Return to the Town Council for Final Consideration if Requested by Saratoga.
RECOMMENDATION:
a. Receive and accept the Meliora Public Safety Consulting Transition Study for Police Services in the City of Saratoga and the independent review of the Police Services Cost Model performed by Matrix Consulting Group.
b. Approve the proposed regional law enforcement services partnership framework and the financial basis including an initial annual Base Rate of $9,392,000 for ongoing services and an estimated annual startup cost recovery installment of $337,000, for an annualized total of $9,729,000 before applicable simple interest and other authorized charges.
c. Adopt a resolution receiving and accepting the Saratoga police services transition study and independent cost review; approving the proposed regional law enforcement services partnership framework and FY 2027-28 contract financial basis; approving the agreement for law enforcement services in substantial form; and authorizing continued discussions with the City of Saratoga regarding a potential regional law enforcement services partnership.
d. Authorize the Town Manager, in consultation with the Chief of Police and Town Attorney, to continue discussions and negotiations with the City of Saratoga regarding the proposed regional law enforcement services partnership and Agreement, and to return to the Town Council for consideration of final approval and authorization to execute the Agreement if and when Saratoga, following its public review and consideration process, requests that Los Gatos proceed with final consideration.
COUNCIL MATTERS (Members of the public who wish to speak on matters listed under Council Matters may do so under Verbal Communications.)
MANAGER MATTERS
ATTORNEY MATTERS AND CLOSED SESSION REPORT
ADJOURNMENT (Council policy is to adjourn no later than eleven p.m. unless a majority of Council votes for an extension of time.)
ADA NOTICE - In compliance with the Americans with Disabilities Act, if you require special assistance to participate in this meeting, please contact the Clerk’s Office at (408) 354-6834.
Please notify the Clerk’s Office at least two (2) business days prior to the meeting so that reasonable arrangements can be made to ensure accessibility in compliance with 28 CFR §35.102-
35.104 and related provisions.
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://losgatoscaPage 4
gov.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 [email protected] with the subject line “Public Comment Item #__ ” (insert the item number relevant to your comment).
Deadlines to submit written comments are:
-3:00 p.m. the Thursday before the Council meeting for inclusion in the agenda packet. -3:00 p.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: 09/15/2026
ITEM NO: 1
DRAFT
Minutes of the Town Council Special Meeting Closed Session Tuesday, September 1, 2026
The Town Council of the Town of Los Gatos conducted a special meeting in person and by teleconference to hold a Closed Session.
MEETING CALLED TO ORDER AT 5:35 P.M.
ROLL CALL
Present: Mayor Rob Moore, Vice Mayor Ristow, Council Member Mary Badame, Council Member Rennie, Council Member Matthew Hudes (participating remotely in accordance with Government Code Section 54953.8.3. under the circumstance of “Just Cause” due to a medical emergency)
Absent: None.
VERBAL COMMUNICATIONS (ONLY ON ITEMS ON THE AGENDA)
No one spoke
Mayor Moore 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
Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: 1 case.
There was no reportable action.
ADJOURNMENT
The meeting adjourned at approximately 6:17 p.m.
Attest: Submitted by:
____________________________ __________________________ Keara Johnson, 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: 09/15/2026
ITEM NO: 2
DRAFT
Minutes of the Town Council Meeting
Tuesday, September 1, 2026
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 Rob Moore, Vice Mayor Ristow, Council Member Mary Badame, Council Member Rennie, Council Member Matthew Hudes (participating remotely in accordance with Government Code Section 54953.8.3 under the circumstance of “Just Cause” due to a medical emergency)
Absent: None.
PLEDGE OF ALLEGIANCE
Susan Burnette led 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 August 10, 2026, Closed Session Town Council Meeting.
2. Approve the Minutes of the August 11, 2026, Special Town Council Meeting.
3. Approve the Minutes of the August 17, 2026, Closed Session Town Council Meeting.
4. Approve the Minutes of the August 18, 2026, Special Meeting of the Town Council.
5. Approve the Minutes of the August 18, 2026, Regular Meeting of the Town Council.
6. Adopt a Resolution to Summarily Vacate a Public Service Easement at 15995 Cerro Vista Drive. RESOLUTION 2026-052
7. Adopt a Resolution Establishing Preferential Permit Parking and Time Limited Parking on Portions of High School Court and Brooklyn Avenue, and Authorize the Town Manager to Accept Reimbursement Funds from the Los Gatos-Saratoga Union High School District Associated with the Brooklyn Avenue Parking Improvements. RESOLUTION 2026-053
8. Authorize the Town Manager to Execute a Consultant Agreement for Executive Recruitment Services with Bob Murray & Associates in an Amount Not to Exceed $29,900.
9. Approve and Ratify the Accounts Payable Check Registers and Payroll Reports
10. Approve a Revenue Budget Adjustment of $3,674,187 for the Proceeds Received from the Sale of 4 Tait Avenue and Allocate Net Proceeds.
Mayor Moore pulled item number ten.
Mayor Moore opened public comment.
ITEM NO. 2.
PAGE 2 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of September 1, 2026 DATE: September 15, 2026
The following individual spoke on the consent items:
1. Member of the Public (Items 2, 4, 5, 7, 8)
Mayor Moore closed public comment.
(Video time: 00:09:30)
MOTION: Motion by Vice Mayor Ristow to approve consent items one through nine.
Seconded by Council Member Rennie.
VOTE: Motion passed unanimously by roll call vote.
VERBAL COMMUNICATIONS
Mayor Moore opened public comment.
The following individuals spoke during verbal communications:
1. Member of the Public
2. Debbie Pinkston
3. Janet Wolf
4. Austin
5. Leanne McAuliffe
6. Joe Enz
Mayor Moore closed public comment.
PUBLIC HEARINGS
1. Consider a Recommendation of Approval by the Planning Commission on Proposed Changes and Additions to the Town’s Objective Design Standards for Multi-Family and Mixed-Use Projects. Not Subject to CEQA Review Pursuant to CEQA Guidelines Section 15061 (b)(3) Because It Can Be Seen with Certainty That There Is No Possibility that the Changes and Additions to the Town’s Objective Design Standards for Multi-Family and Mixed-Use Projects Would Have a Significant Effect on the Environment. All Projects for Which the Objective Design Standards for Multi-Family and Mixed-Use Projects Will Apply Will Undergo Separate CEQA Review and Approval. Project Location: Townwide. Applicant:
Town of Los Gatos. Project Planner: Sean Mullin. RESOLUTION 2026-054 Sean Mullin, Planning Manager, presented the staff report and introduced the consultant Monica Szydlik, from Lisa Wise Consulting. The consultant gave a presentation on the proposed Objective Design Standards.
Council discussed the item.
Mayor Moore opened public comment.
ITEM NO. 2.
PAGE 3 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of September 1, 2026 DATE: September 15, 2026
The following individuals spoke on this item:
1. Lee Fagot
2. Member of the Public
3. Dashiell Leeds
4. Rani
Mayor Moore closed public comment.
Council discussed the item further.
(Video time: 01:40:25)
MOTION: Motion by Council Member Hudes to accept the Planning Commission’s recommendations, adopt the Resolution approving changes and additions to the Town’s Objective Design Standards for Multi-Family and Mixed-Use Projects, with three modifications: one to review this with architect Larry Cannon; two, adopt Vice Mayor’s objections about lighting [Lighting shall be arranged so that the light will not shine directly on lands of adjacent properties. All exterior light sources shall have a correlated color temperature of 2700 Kelvin or lower. All outdoor lighting shall be equipped with automatic controls programmed to extinguish the lighting by 11:00 p.m. or when the illuminated area is no longer in use, whichever occurs first. Lighting required by the California Building Code or Fire Code for safety or emergency access is exempt]; three, adopt a fifty-foot rather than a forty-foot distance from a single-family residence; and bring it back to the Council. Seconded by Council Member Badame.
(Video time: 1:44:38)
SUBSTITUTE MOTION: Motion by Vice Mayor Ristow to accept the Planning Commission’s suggestions with the parts the staff presented in the existing draft document [adopt the Resolution approving changes and additions to the Town’s Objective Design Standards for Multi-Family and Mixed-Use Projects], with the addition of language for 7.2 as described earlier [Lighting shall be arranged so that the light will not shine directly on lands of adjacent properties. All exterior light sources shall have a correlated color temperature of 2700 Kelvin or lower. All outdoor lighting shall be equipped with automatic controls programmed to extinguish the lighting by 11:00 p.m. or when the illuminated area is no longer in use, whichever occurs first. Lighting required by the California Building Code or Fire Code for safety or emergency access is exempt]; and change the forty-foot stepback where a building taller than two stories is adjacent to single-family homes to a fifty-foot step-back [in Exhibit 1]; have the town architect review these, hear his feedback, and if it seems substantial, reopen a decision about whether there are additions and changes to make. Seconded by Council Member Rennie. AMENDED: Before [the architect] reviews, come back with a price
ITEM NO. 2.
PAGE 4 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of September 1, 2026 DATE: September 15, 2026
estimate and [Council] can make a decision at another meeting.
VOTE: Motion passed unanimously by roll call vote.
CONSENT ITEM
10. Approve a Revenue Budget Adjustment of $3,674,187 for the Proceeds Received from the Sale of 4 Tait Avenue and Allocate Net Proceeds.
Chris Constantin, Town Manager, provided information on the item.
Mayor Moore opened public comment.
The following individuals spoke on this item:
1. Janet Wolf
2. Rita Kelly
3. Jan Schwartz
Mayor Moore closed public comment.
Council discussed the item.
(Video time: 02:01:32)
MOTION: Motion by Vice Mayor Ristow to approve a revenue budget adjustment of $3,674,187 for the proceeds received from the sale of 4 Tait Avenue and allocate the net proceeds according to the staff report [the staff report states:
“$3,109,000 would benefit the General Fund, including $3,000,000 to replenish unassigned fund balance previously allocated to the Long-Term Community Benefit Capital Fund and $109,000 to reimburse sale related staff and special counsel costs. The remaining $565,187 is recommended to be allocated to the Long Term Community Benefit Capital Fund”], and have the discussion at CIP (Capital Improvement Program) time of what to do with that fund. Seconded by Council Member Rennie.
VOTE: Motion passed unanimously by roll call vote.
COUNCIL MATTERS
- Council Member Rennie had nothing to report.
- Council Member Hudes stated he met with West Valley Museum Association (WVMA) and the Farley Road neighborhood organization, met with a resident regarding concerns, and attended a meeting with Representative Sam Liccardo.
- Vice Mayor Ristow apologized for her inadvertent use of outdated language related to mental health.
ITEM NO. 2.
PAGE 5 OF 5
SUBJECT: Draft Minutes of the Town Council Meeting of September 1, 2026 DATE: September 15, 2026
- Council Member Badame stated she participated in a Council Policy Committee meeting and met with residents about concerns.
- Mayor Moore attended the morning Rotary Endless Summer celebration, Jazz on the Plazz, Music in the Park; appointed to the Cal Cities Young Elected Member Group; attended the Cities Association Executive Committee meeting; met with a developer; attended the Lick Observatory’s 150th celebration; met with representatives of the Los Gatos Saratoga Assistants League; attended the inaugural Rinconada Hills Senior Resource Fair, and Silicon Valley Pride.
MANAGER MATTERS
Chris Constantin, Town Manager
- Stated that there are unscheduled vacancies on some of the commissions and that Town Administrative Offices would be closed for Labor Day.
ATTORNEY MATTERS AND CLOSED SESSION REPORT
Gabrielle Whelan, Town Attorney
- Stated that the Town Council met earlier in closed session to discuss initiation of litigation pursuant to Government Code Section 54956.9, and there is no reportable action at this time.
ADJOURNMENT
The meeting adjourned at 9:16 p.m.
Respectfully Submitted:
_____________________________________
Keara Johnson, Deputy Town Clerk
ITEM NO. 2.
PREPARED BY: Eric Lemon
Finance and Accounting Manager
Reviewed by: Town Manager, Town Attorney, and Administrative Services Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/15/2026
ITEM NO: 3
DATE: September 15, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive the Monthly Financial and Investment Report for July 2026 and Corrected Investment Report for June 2026
RECOMMENDATION: Receive the Monthly Financial and Investment Report for July 2026 and corrected Investment Report for June 2026.
FISCAL IMPACT:
This report has no fiscal impact.
STRATEGIC PRIORITY:
This item aligns with the Town’s Core Goals of Good Governance and Fiscal Stability by ensuring adherence to proper financial reporting guidelines and information.
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 Administrative Services Director assumes the Town Treasurer role. Attachment 1 contains the July 2026 monthly Financial and Investment Report, which fulfils this requirement.
The July 2026 Monthly Financial and Investment Report will be received by the Finance Commission at its September 14, 2026, regular meeting.
ITEM NO. 3.
PAGE 2 OF 4
SUBJECT: Monthly Financial and Investment Report for July 2026 DATE: September 15, 2026
DISCUSSION:
The July 2026 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 July 31, 2026, 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 July 31 and June 30 estimated fund balance is due to normal dayto-day fluctuations in revenues and expenditures and regular year-end entries.
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. The resulting amount represents estimated accounting fund balance across Town funds and includes amounts that may be nonspendable, restricted, committed, or assigned.
As of July 31, 2026, the Town’s financial position (Cash Plus Other Assets $95.94M, Liabilities $25.39M, and Fund Equity $70.55M) remains strong, and the Town has sufficient funds to meet the cash demands for the next six months.
As of July 31, 2026, the Town’s weighted average yield to maturity for investments under management was 4.20%, which was 36 basis points above the Local Agency Investment Fund (LAIF) yield of 3.84% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 281 days versus the Town’s longer WAM of 577 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
ITEM NO. 3.
PAGE 3 OF 4
SUBJECT: Monthly Financial and Investment Report for July 2026 DATE: September 15, 2026
investments held with the State’s LAIF. The Town’s weighted average yield to maturity on investments under management of 4.20% at the close of July was 1 basis point higher when compared to the prior month’s return of 4.19% reported as of June 30, 2026.
Since July 2025, LAIF yields decreased from 426 basis points (4.26%) to 384 basis points (3.84%) through the end of July 2026. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing.
The Federal Open Market Committee implemented three rate cuts in 2025. The first, on September 17, reduced the federal funds target range by 25 basis points to 4.00%–4.25% amid slower economic growth in the first half of the year and emerging signs of labor market softening. A second 25 basis point cut on October 29 brought the range down to 3.75%–4.00% as labor market weakness and broader economic uncertainty persisted. At its December 10 meeting, the Committee approved a final 25 basis point reduction to 3.50%–3.75%, reflecting ongoing concerns about the economic outlook. These adjustments align with the FOMC's objective to promote maximum employment and achieve an inflation target of 2% over the long run. As of September 7, 2026, there have been no rate adjustments in calendar year 2026.
Nonfarm payrolls increased by only 57,000 in June, lower than expectations and a sharp deceleration from prior months. The unemployment rate ticked down to 4.2%.
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.
Staff identified a LAIF balance error on the June monthly investment report, where the July 2026 balance was used instead of the June 2026 balance. This error affected pages 1, 2, and 5 of the June report. The numbers that changed from the prior report are noted in Attachment 2, with a clean corrected version in Attachment 3. All comparisons to June on the July investment report and this staff report use the corrected June numbers.
CONCLUSION:
Staff recommends that the Town Council receive the Monthly Financial and Investment Report for July 2026.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ITEM NO. 3.
PAGE 4 OF 4
SUBJECT: Monthly Financial and Investment Report for July 2026 DATE: September 15, 2026
Attachments:
1. Financial and Investment Report (July 2026)
2. Financial and Investment Report (June 2026) – Commented
3. Financial and Investment Report (June 2026) – Clean
ITEM NO. 3.
Weighted Average YTM Portfolio Yield on Investments
under Management 4.20%
Weighted Average Maturity (days) 577
This Month Last Month One year ago
Portfolio Allocation & Treasurer's Cash Balances $78,318,427 $90,859,940 $70,742,567 Managed Investments $54,204,604
Local Agency Investment Fund $15,910,115
Reconciled Demand Deposit Balances $8,203,708
Portfolio Allocation & Treasurer's Cash Balances $78,318,427 Benchmarks/ References:
Town's Average Yield 4.20% 4.19% 4.39%
LAIF Yield for month 3.84% 3.82% 4.26%
3 mo. Treasury 3.75% 3.81% 4.34%
6 mo. Treasury 3.94% 3.97% 4.27%
2 yr. Treasury 4.29% 4.17% 3.96%
5 yr. Treasury 4.45% 4.23% 3.97%
10 Yr. Treasury 4.73% 4.47% 4.37%
Town of Los Gatos
Summary Investment Information
July 31, 2026
0 - 1 year
43%
1 - 2 years
19%
2 - 3 years
18%
3 - 5 years
20%
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 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. 1 Attachment 1
ITEM NO. 3.
Month YTD
Cash & Investment Balances - Beginning of Month/Period $ 90,859,940.45 $ 90,859,940.45 Receipts 9,756,364.12 9,756,364.12
Disbursements (22,297,877.28) (22,297,877.28)
Cash & Investment Balances - End of Month/Period $78,318,427.29 $78,318,427.29 Portfolio Allocation Amount % of Portfolio
Max. % or $ Allowed
per State Law or Policy
BNY MM $190,566.72 0.27% 20% of Town Portfolio
US Treasury Notes $26,297,230.82 37.51% No Max. on US Treasuries Government Agency Debenture Notes $11,660,791.81 16.63% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $16,056,014.80 22.90% 30% of Town Portfolio Local Agency Investment Fund $15,910,114.99 22.69% $75 M per State Law Subtotal - Investments 70,114,719.14 100.00%
Reconciled Demand Deposit Balances 8,203,708.15
Total Portfolio Allocation & Treasurer's Cash Balances $78,318,427.29
0.0401
0.0388
Town of Los Gatos
Portfolio Allocation & Treasurer's Cash Balances
July 31, 2026
BNY MM
0.27%
US Treasury Notes
37.51%
Government Agency
Debenture Notes
16.63%
Corporate Medium Term
Bonds
22.90%
Local Agency Investment Fund
22.69%
Portfolio Investment Allocation
$70.7 M
$78.3 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
$100.0 M
Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Treasurer's Fund Balances
2
ITEM NO. 3.
July 2026
July 2026 Interest/ July 2026
Beginning Deposits Unrealized Gains (Losses)/ Withdrawals / Ending Balance Realized Gain/Adj. Gains (Losses) Fees Balance
Non-Treasury Funds:
Cert. of Participation 2002 Ser A Reserve Fund $ 708,001.78 $ - $ 1,825.07 $ (12,568.89) $ 697,257.96 Note 1 Cert. of Participation 2010 Ser Lease Payment Fund 85.76 1,187,376.74 0.26 - $ 1,187,462.76 Note 2 Cert. of Participation 2002 Ser A Lease Payment Fund 145.73 580,349.76 0.30 - $ 580,495.79 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,326,702.25 - 3,832.15 - $ 1,330,534.40 Note 2 Total Restricted Funds: $ 2,034,935.52 $ 1,767,726.50 $ 5,657.78 $ (12,568.89) $ 3,795,750.91 CEPPT IRS Section 115 Trust 4,055,601.39 - (27,277.68) (789.50) $ 4,027,534.21 Note 3 Grand Total COP's and CEPPT Trust $ 6,090,536.91 $ 1,767,726.50 $ (21,619.90) $ (13,358.39) $ 7,823,285.12 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
July 31, 2026
3
ITEM NO. 3.
July 2025 $ 247,458.13
August 2025 $ -
September 2025 $ -
October 2025 $ -
November 2025 $ -
December 2025 $ -
January 2026 $ -
February 2026 $ -
March 2026 $ -
April 2026 $ -
May 2026 $ -
June 2026 $ -
$ 247,458.13
Town of Los Gatos
Statement of Interest Earned
July 31, 2026
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) 1,280,682.00 52,091.00 6/21/2027 4.19% $ 121,687.22 $ 188,980.26 $ 4,548.44 325 FFCB 3133EN5V8 Gov. Agency Debenture 4.13% 1/17/2023 236,000.00 239,174.20 3,174.20 236,172.28 (3,001.92) 1/11/2027 3.76% $ 33,910.25 $ 30,856.96 $ 759.18 164 FHLB 3130AQF65 Gov. Agency Debenture 1.25% 11/30/2022 1,300,000.00 1,160,559.40 (139,440.60) 1,286,922.00 126,362.60 12/21/2026 4.15% $ 57,822.92 $ 181,301.91 $ 4,296.91 143 FHLB 3130APJH9 Gov. Agency Debenture 1.00% 1/17/2023 1,000,000.00 907,010.00 (92,990.00) 996,860.00 89,850.00 10/28/2026 4.17% $ 33,354.17 $ 119,424.46 $ 2,938.22 89 FFCB 3133EN5N6 Gov. Agency Debenture 4.00% 2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,694,628.00 (12,104.00) 1/6/2028 3.91% $ 231,955.56 $ 225,992.90 $ 5,658.95 524 American Honda 02665WED9 Corporate Bond 4.70% 5/11/2023 600,000.00 608,856.00 8,856.00 600,582.00 (8,274.00) 1/12/2028 4.34% $ 89,378.33 $ 82,594.77 $ 2,234.24 530 US Treasury 91282CEF4 US Treasury Note 2.50% 6/9/2023 1,500,000.00 1,416,626.12 (83,373.88) 1,485,075.00 68,448.88 3/31/2027 4.09% $ 105,327.87 $ 181,711.12 $ 5,043.01 243 Colgate-Palmolive 194162AR4 Corporate Bond 4.60% 7/14/2023 500,000.00 504,655.00 4,655.00 501,595.00 (3,060.00) 2/1/2028 4.37% $ 60,502.79 $ 65,152.13 $ 1,866.65 550 FFCB 3133EPBM6 Gov. Agency Debenture 4.13% 7/14/2023 600,000.00 596,220.00 (3,780.00) 599,442.00 3,222.00 8/23/2027 4.29% $ 64,556.25 $ 76,093.32 $ 2,180.12 388 PNC Bank 69353RFJ2 Corporate Bond 3.25% 7/25/2023 1,000,000.00 921,490.00 (78,510.00) 982,650.00 61,160.00 12/23/2027 5.23% $ 97,229.17 $ 147,524.43 $ 4,270.08 510 US Treasury 91282CFU0 US Treasury Note 4.13% 7/31/2023 1,300,000.00 1,290,660.60 (9,339.40) 1,298,479.00 7,818.40 10/31/2027 4.31% $ 147,468.75 $ 162,872.14 $ 4,740.88 457 Toyota Motor Credit 89236TKL8 Corporate Bond 5.45% 8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,619,728.00 2,560.00 11/10/2027 5.16% $ 236,166.67 $ 236,851.22 $ 7,059.99 467 US Treasury 912810FE3 US Treasury Note 5.50% 10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,227,888.00 (10,319.14) 8/15/2028 4.76% $ 156,211.96 $ 159,492.42 $ 4,939.33 746 FFCB 3133EPUW3 Gov. Agency Debenture 4.75% 10/13/2023 1,000,000.00 994,338.00 (5,662.00) 1,000,520.00 6,182.00 9/1/2026 4.96% $ 113,208.33 $ 134,289.32 $ 4,200.78 32 US Treasury 91282CEW7 US Treasury Note 3.25% 10/16/2023 1,000,000.00 950,039.06 (49,960.94) 992,040.00 42,000.94 6/30/2027 4.73% $ 87,961.96 $ 124,455.54 $ 3,904.98 334 US Treasury 91282CEN7 US Treasury Note 2.75% 10/31/2023 1,300,000.00 1,214,336.39 (85,663.61) 1,287,403.00 73,066.61 4/30/2027 4.82% $ 89,375.00 $ 160,571.39 $ 5,115.84 273 US Treasury 91282CCH2 US Treasury Note 1.25% 12/21/2023 900,000.00 798,647.55 (101,352.45) 850,257.00 51,609.45 6/30/2028 3.99% $ 28,430.71 $ 84,949.54 $ 2,856.22 700 FNMA 3135G0Q22 Gov. Agency Debenture 1.88% 12/21/2023 900,000.00 845,676.00 (54,324.00) 897,471.00 51,795.00 9/24/2026 4.22% $ 38,109.38 $ 92,315.93 $ 3,103.90 55 US Treasury 91282CFB2 US Treasury Note 2.75% 1/2/2024 1,000,000.00 960,354.91 (39,645.09) 986,060.00 25,705.09 7/31/2027 3.95% $ 70,917.12 $ 96,185.71 $ 3,276.66 365 US Treasury 91282CHE4 US Treasury Note 3.63% 1/17/2024 1,800,000.00 1,775,185.72 (24,814.28) 1,779,048.00 3,862.28 5/31/2028 3.97% $ 154,567.63 $ 173,911.85 $ 6,023.76 670 JP Morgan Chase 46647PDG8 Corporate Bond 4.85% 2/1/2024 1,400,000.00 1,396,528.00 (3,472.00) 1,402,338.00 5,810.00 7/25/2027 4.93% $ 168,653.10 $ 166,143.66 $ 5,852.79 359 US Bancorp 91159HJF8 Corporate Bond 4.55% 2/5/2024 1,000,000.00 989,200.00 (10,800.00) 999,350.00 10,150.00 7/22/2027 4.89% $ 112,057.67 $ 116,642.74 $ 4,127.77 356 FFCB 3133EP5U5 Gov. Agency Debenture 4.13% 3/28/2024 1,700,000.00 1,687,981.00 (12,019.00) 1,689,579.00 1,598.00 3/20/2029 4.28% $ 138,691.67 $ 163,757.14 $ 6,160.77 963 US Treasury 9128285M8 US Treasury Note 3.13% 4/30/2024 1,200,000.00 1,123,832.14 (76,167.86) 1,168,872.00 45,039.86 11/15/2028 4.69% $ 76,545.34 $ 117,561.57 $ 4,607.34 838 Cisco Systems 17275RBR2 Corporate Bond 4.85% 5/15/2024 1,000,000.00 999,130.00 (870.00) 1,005,850.00 6,720.00 1/26/2029 4.87% $ 86,356.94 $ 103,505.53 $ 4,134.89 910 Home Depot 437076CW0 Corporate Bond 4.90% 5/17/2024 1,000,000.00 1,001,790.00 1,790.00 1,007,820.00 6,030.00 3/15/2029 4.86% $ 93,644.44 $ 103,121.00 $ 4,130.17 958 Treasury 91282CJR3 US Treasury Note 3.75% 5/31/2024 1,200,000.00 1,154,629.02 (45,370.98) 1,183,920.00 29,290.98 12/31/2028 4.68% $ 93,708.79 $ 114,284.87 $ 4,661.62 884 Citibank 17325FBK3 Corporate Bond 4.84% 8/15/2024 1,250,000.00 1,263,062.50 13,062.50 1,253,125.00 (9,937.50) 7/6/2029 4.60% $ 89,200.62 $ 108,325.83 $ 4,909.50 1071 FNMA 3135G05Y5 Gov. Agency Debenture 0.75% 9/10/2024 1,100,000.00 1,010,724.00 (89,276.00) 1,056,209.00 45,485.00 10/8/2027 3.56% $ 13,016.67 $ 67,182.14 $ 3,165.12 434 US Treasury 91282CFL0 US Treasury Note 3.88% 12/3/2024 1,100,000.00 1,088,144.31 (11,855.69) 1,083,929.00 (4,215.31) 9/30/2029 4.12% $ 56,442.99 $ 70,894.37 $ 3,828.79 1157 FHLB 3130ATUT2 Gov. Agency Debenture 4.50% 2/12/2025 505,000.00 508,253.21 3,253.21 506,621.05 (1,632.16) 12/14/2029 4.35% $ 30,426.25 $ 30,390.32 $ 1,872.96 1232 FFCB 3133ER5X5 Gov. Agency Debenture 3.88% 3/12/2025 1,000,000.00 998,480.00 (1,520.00) 993,290.00 (5,190.00) 3/7/2028 3.93% $ 38,211.81 $ 51,089.86 $ 3,334.29 585 Treasury 91282CJF9 US Treasury Note 4.88% 3/31/2025 1,100,000.00 1,130,167.75 30,167.75 1,112,595.00 (17,572.75) 10/31/2028 4.04% $ 58,069.06 $ 56,493.38 $ 3,840.56 823 State Street Corp 857477CD3 Corporate Bond 5.27% 4/30/2025 800,000.00 811,184.00 11,184.00 800,000.00 (11,184.00) 8/3/2026 4.04% $ 31,983.47 $ 38,867.24 $ 2,828.37 3 Freddie Mac 3134HAW33 Gov. Agency Debenture 4.75% 4/30/2025 1,000,000.00 1,005,644.00 5,644.00 995,880.00 (9,764.00) 12/18/2029 4.23% $ 54,493.07 $ 54,018.19 $ 3,930.90 1236 US Treasury 91282CNG2 US Treasury Note 4.00% 6/30/2025 660,000.00 665,184.24 5,184.24 650,383.80 (14,800.44) 5/31/2030 3.82% $ 24,236.08 $ 25,346.41 $ 2,152.71 1400 US Treasury 91282CMG3 US Treasury Note 4.25% 8/4/2025 825,000.00 842,308.43 17,308.43 820,875.00 (21,433.43) 1/31/2030 3.74% $ 34,681.39 $ 28,219.67 $ 2,650.94 1280 US Treasury 91282CMA6 US Treasury Note 4.13% 8/25/2025 1,200,000.00 1,218,847.77 18,847.77 1,190,208.00 (28,639.77) 11/30/2029 3.72% $ 37,868.86 $ 38,167.38 $ 3,829.09 1218 US Treasury 91282CHR5 US Treasury Note 4.00% 9/23/2025 950,000.00 967,036.38 17,036.38 935,341.50 (31,694.88) 7/31/2030 3.59% $ 32,423.92 $ 26,458.71 $ 2,929.36 1461 US Treasury 91282CGQ8 US Treasury Note 4.00% 10/3/2025 1,000,000.00 1,013,362.72 13,362.72 986,840.00 (26,522.72) 2/28/2030 3.67% $ 16,353.59 $ 27,346.70 $ 3,139.81 1308 State Street Corp 857477DB6 Corporate Bond 4.83% 11/10/2025 580,000.00 596,535.80 16,535.80 580,208.80 (16,327.00) 3/24/2030 4.13% $ 12,772.51 $ 15,415.70 $ 2,059.86 1332 US Treasury 91282CKA8 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,157,775.34 7,775.34 1,150,563.50 (7,211.84) 2/15/2027 3.52% $ 7,734.37 $ 21,775.81 $ 3,461.80 199 US Treasury 91282CHW4 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,170,308.54 20,308.54 1,136,752.00 (33,556.54) 8/31/2030 3.71% $ 9,566.13 $ 23,038.22 $ 3,662.49 1492 US Treasury 91282CHZ7 US Treasury Note 4.63% 1/13/2026 1,050,000.00 1,089,087.89 39,087.89 1,057,549.50 (31,538.39) 9/30/2030 3.75% $ 10,272.84 $ 18,536.39 $ 3,420.40 1522 Morgan Stanley Pvt Bank 61776NU43 Corporate Bond 4.21% 2/26/2026 1,250,000.00 1,254,137.50 4,137.50 1,228,525.00 (25,612.50) 3,510.83 2/8/2029 4.09% $ (3,510.83) $ 17,414.89 $ 4,353.72 923 John Deere Capital Corp 24422EXN4 Corporate Bond 4.90% 3/17/2026 1,000,000.00 1,024,660.00 24,660.00 1,002,430.00 (22,230.00) 1,361.11 3/7/2031 4.34% $ (1,361.11) $ 12,670.06 $ 3,740.69 1680 US Treasury 91282CLC3 US Treasury Note 4.00% 4/6/2026 1,050,000.00 1,053,691.41 3,691.41 1,039,332.00 (14,359.41) 7/31/2029 3.88% $ 13,458.56 $ 9,521.94 $ 3,472.71 1096 US Treasury 91282CMB4 US Treasury Note 4.00% 4/6/2026 1,050,000.00 1,052,378.91 2,378.91 1,046,598.00 (5,780.91) 12/15/2027 3.86% $ 8,076.92 $ 9,453.63 $ 3,447.79 502 Bank of America 06051GMY2 Corporate Bond 4.48% 6/1/2026 1,250,000.00 1,244,325.00 (5,675.00) 1,235,662.50 (8,662.50) 5,907.15 4/23/2029 4.65% $ (5,907.15) $ 4,602.04 $ 4,919.42 997 US Treasury 91282CKN0 US Treasury Note 4.63% 6/15/2026 650,000.00 662,037.33 12,037.33 654,569.50 (7,467.83) 3,757.81 4/30/2031 4.20% $ (3,757.81) $ 1,134.01 $ 2,343.61 1734 US Treasury 91282CJG7 US Treasury Note 4.88% 6/15/2026 650,000.00 667,801.01 17,801.01 660,894.00 (6,907.01) 3,960.94 10/31/2030 4.18% $ (3,960.94) $ 1,135.24 $ 2,346.16 1553 US Treasury 91282CMW8 US Treasury Note 3.75% 6/15/2026 600,000.00 596,580.14 (3,419.86) 594,750.00 (1,830.14) 3,750.00 4/15/2028 4.07% $ (3,750.00) $ 1,001.22 $ 2,069.19 624 American Express Co 025816ET2 Corporate Bond 4.44% 7/17/2026 600,000.00 594,702.00 (5,298.00) 593,724.00 (978.00) 5,406.87 5/3/2029 4.78% $ (5,406.87) $ - $ 1,095.38 1007 Subtotal $ 54,756,000.00 $ 54,014,037.43 $ (741,962.57) $ 54,428,087.43 $ 414,050.00 $ 27,654.71 $ 3,339,434.39 $ 4,369,043.16 $ 195,499.07 BNY MM Money Market 190,566.72 190,566.72 0.00 0.00% 1
LAIF State Investment Pool 15,910,114.99 15,892,174.46 (17,940.53) 3.84% 50,912.37 1 70,114,719.14 $70,510,828.61 $396,109.47 $27,654.71 $ 3,339,434.39 $ 4,369,043.16 $ 246,411.44 Matured Assets
FFCB 3133EPQC2 Gov. Agency Debenture 4.63% 7/17/2023 500,000.00 501,957.50 1,957.50 7/17/2026 4.48% $ 69,375.00 $ 66,434.16 $ 1,046.69 Total Interest from Matured Investments $ 1,046.69
Total Interest FY 2025-26, Matured and Current $ 247,458.13 Maturity Profile Amount Percent
0-1 year $ 30,372,074.13 43%
1-2 years $13,477,777.92 19%
2-3 years $12,691,964.05 18%
3-5 years $ 13,572,903.04 19%
$70,114,719.14 100%
Town of Los Gatos
Investment Schedule
July 31, 2026
5
ITEM NO. 3.
Date Cusip/Id Description Transaction Type Trade Date Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction
Total
7/2/2026 Cash-USD Cash-USD
SHORT TERM INVESTMENT
FUND INCOME 7/2/2026 7/2/2026 685.69 0.000% 100.00 - - 685.69 7/6/2026 3133EN5N6
FEDERAL FARM CREDIT BANK 4%
06JAN2028 BOND INTEREST 7/6/2026 7/6/2026 1,700,000.00 4.000% 1/6/2028 - - 34,000.00 34,000.00 7/13/2026 3133EN5V8
FEDERAL FARM CREDIT BANK 4.125%
11JAN2027 BOND INTEREST 7/11/2026 7/11/2026 236,000.00 4.125% 1/11/2027 - - 4,867.50 4,867.50 7/13/2026 02665WED9
AMERICAN HONDA FINANCE 4.7%
12JAN2028 BOND INTEREST 7/13/2026 7/13/2026 600,000.00 4.700% 1/12/2028 - - 14,100.00 14,100.00 7/17/2026 025816ET2
AMERICAN EXPRESS CO 4.444%
03MAY2030 (CALLABLE 03MAY29) PURCHASE 7/15/2026 7/17/2026 600,000.00 4.444% 5/3/2030 99.12 594,702.00 5,406.87 600,108.87 7/17/2026 3133EPQC2
FEDERAL FARM CREDIT BANK 4.625%
17JUL2026 REDEMPTION 7/17/2026 7/17/2026 500,000.00 0.000% 7/17/2026 100.00 500,000.00 - 500,000.00 7/17/2026 3133EPQC2
FEDERAL FARM CREDIT BANK 4.625%
17JUL2026 BOND INTEREST 7/17/2026 7/17/2026 500,000.00 0.000% 7/17/2026 - - 11,562.50 11,562.50 7/22/2026 91159HJF8
US BANCORP 4.548% 22JUL2028
(CALLABLE 22JUL27) BOND INTEREST 7/22/2026 7/22/2026 1,000,000.00 4.548% 7/22/2028 - - 22,740.00 22,740.00 7/22/2026 69353RFJ2
PNC BANK NA 3.25% 22JAN2028
(CALLABLE 23DEC27) BOND INTEREST 7/22/2026 7/22/2026 1,000,000.00 3.250% 1/22/2028 - - 16,250.00 16,250.00 7/27/2026 46647PDG8
JPMORGAN CHASE & CO 4.851%
25JUL2028 (CALLABLE 25JUL27) BOND INTEREST 7/25/2026 7/25/2026 1,400,000.00 4.851% 7/25/2028 - - 33,957.00 33,957.00 7/31/2026 91282CMG3 USA TREASURY 4.25% 31JAN2030 BOND INTEREST 7/31/2026 7/31/2026 825,000.00 4.250% 1/31/2030 - - 17,531.25 17,531.25 7/31/2026 91282CHR5 USA TREASURY 4% 31JUL2030 BOND INTEREST 7/31/2026 7/31/2026 950,000.00 4.000% 7/31/2030 - - 19,000.00 19,000.00 7/31/2026 91282CLC3 USA TREASURY 4% 31JUL2029 BOND INTEREST 7/31/2026 7/31/2026 1,050,000.00 4.000% 7/31/2029 - - 21,000.00 21,000.00 7/31/2026 91282CFB2 USA TREASURY 2.75% 31JUL2027 BOND INTEREST 7/31/2026 7/31/2026 1,000,000.00 2.750% 7/31/2027 - - 13,750.00 13,750.00 Town of Los Gatos
Investment Transaction Detail
July 31, 2026
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
025816ET2 AMERICAN EXPRESS CO 4.444% 03MAY2030 (CALLABLE 03MAY29) 5/3/2030 600,000 600,495 A- A2 3 1 3 4 02665WED9 AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 600,000 602,371 BBB+ A3 3 2 3 3 037833DB3 APPLE INC 2.9% 12SEP2027 (CALLABLE 12JUN27) 9/12/2027 1,300,000 1,295,511 AA+ Aaa 5 3 5 4 06051GMY2 BANK OF AMERICA CORP 4.477% 23APR2030 (CALLABLE 23APR29) 4/23/2030 1,250,000 1,251,547 A- A1 3 1 3 4 17275RBR2 CISCO SYSTEMS INC 4.85% 26FEB2029 (CALLABLE 26JAN29) 2/26/2029 1,000,000 1,027,328 AA- A1 3 1 3 3 17325FBK3 CITIBANK NA 4.838% 06AUG2029 (CALLABLE 06JUL29) 8/6/2029 1,250,000 1,283,380 A+ Aa3 3 1 2 5 194162AR4 COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28) 3/1/2028 500,000 511,334 A+ Aa3 3 3 3 3 24422EXN4 JOHN DEERE CAPITAL CORP 4.9% 07MAR2031 3/7/2031 1,000,000 1,023,183 A A1 2 1 2 4 437076CW0 HOME DEPOT INC 4.9% 15APR2029 (CALLABLE 15MAR29) 4/15/2029 1,000,000 1,022,995 A A2 2 2 3 3 46647PDG8 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL27) 7/25/2028 1,400,000 1,403,758 A A1 3 2 3 4 61776NU43 MORGAN STANLEY PVT BANK 4.213% 08FEB2030 (CALLABLE 08FEB29) 2/8/2030 1,250,000 1,255,116 A+ Aa3 3 1 3 5 69353RFJ2 PNC BANK NA 3.25% 22JAN2028 (CALLABLE 23DEC27) 1/22/2028 1,000,000 983,764 A A2 3 3 3 3 857477CD3 STATE STREET CORP 5.272% 03AUG2026 CALLABLE 8/3/2026 800,000 820,854 A Aa3 1 1 2 2 857477DB6 STATE STREET CORP 4.834% 24APR2030 (CALLABLE 24MAR30) 4/24/2030 580,000 588,359 A Aa3 1 1 2 2 89236TKL8 TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 1,600,000 1,639,781 A+ A1 1 1 2 4 91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 7/22/2028 1,000,000 1,000,695 A A3 3 2 3 4 Total Corporate / weighted average 16,130,000 16,310,472 3 2 3 4 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 July 31, 2026
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 1,300,000 - - - - 1,300,000
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 1,201,824 - - - - 1,201,824
Council Priorities - Economic Recovery - - - - - -
Unassigned Fund Balances:
111 Other Unassigned Fund Balance Reserve (Pre YE distribution) 15,415,411 879,028 (3,156,328) - - 13,138,111 General Fund Total 40,967,678 879,028 (3,156,328) - - 38,690,378 * Interfund transfers to be performed as part of the fiscal year end closing entries.
July 2026 Prior Year
Carryforward
7/1/2026*
Estimated Fund
Balance
7/31/2026*
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) 665,021 - (20,890) - - 644,131 231-236 Landscape & Lighting Districts 201,078 - - - - 201,078 251 Los Gatos Theatre 568,006 15,168 (220) - - 582,954
261-264,269 Library Trusts 594,549 - (3,471) - - 591,078 Special Revenue Total 2,195,307 15,168 (24,581) - - 2,185,894
CAPITAL PROJECTS
411 GFAR - General Fund Appropriated Reserve 16,006,510 8,616 (90,088) - - 15,925,038 412 Community Center Development 819,604 - - - - 819,604 421 Grant Funded Projects 73,604 341,369 - - - 414,973
461-463 Storm Basin Projects 2,986,131 - - - - 2,986,131 471 Traffic Mitigation Projects 676,482 - - - - 676,482 472 Utility Undergrounding Projects 3,792,042 - - - - 3,792,042 481 Gas Tax Projects 2,963,185 - (207) - - 2,962,978
Capital Projects Total 27,317,558 349,985 (90,295) - - 27,577,248
INTERNAL SERVICE FUNDS
611 Town General Liability (227,338) - (1,257,869) - - (1,485,207) 612 Workers Compensation 1,359,362 10,020 (585,469) - - 783,913 621 Information Technology 2,398,898 8,735 (550,871) - - 1,856,762 631 Vehicle & Equipment Replacement 4,895,601 14,960 - - - 4,910,561 633 Facility Maintenance 824,940 50,006 (82,608) - - 792,338 Internal Service Funds Total 9,251,463 83,721 (2,476,817) - - 6,858,367 Trust/Agency
942 RDA Successor Agency (2,984,011) - (1,773,206) - - (4,757,217) Trust/Agency Fund Total (2,984,011) - (1,773,206) - - (4,757,217) Total Town 76,747,995 1,327,902 (7,521,227) - - 70,554,670 * Interfund transfers to be performed as part of the fiscal year end closing entries.
Deposit Accounts of Interest:
111-23541 General Plan Update deposit account balance $657,663.35 111-23521 BMP Housing deposit account balance $3,723,190.79 Prior Year
Carryforward
7/1/2026*
July 2026 Estimated Fund
Balance
7/31/2026*
9
ITEM NO. 3.
Weighted Average YTM Portfolio Yield on Investments
under Management 4.19%
Weighted Average Maturity (days) 547
This Month Last Month One year ago
Portfolio Allocation & Treasurer's Cash Balances $90,859,940 $84,537,776 $81,558,113 Managed Investments $54,002,525
Local Agency Investment Fund $21,712,191
Reconciled Demand Deposit Balances $15,145,225
Portfolio Allocation & Treasurer's Cash Balances $90,859,940 Benchmarks/ References:
Town's Average Yield 4.19% 4.18% 4.39%
LAIF Yield for month 3.82% 3.81% 4.27%
3 mo. Treasury 3.81% 3.67% 4.29%
6 mo. Treasury 3.97% 3.74% 4.25%
2 yr. Treasury 4.17% 4.00% 3.72%
5 yr. Treasury 4.23% 4.14% 3.80%
10 Yr. Treasury 4.47% 4.44% 4.23%
Town of Los Gatos
Summary Investment Information
June 30, 2026
0 - 1 year
44%
1 - 2 years
21%
2 - 3 years
15%
3 - 5 years
20%
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 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. 1 Attachment 2
ITEM NO. 3.
Month YTD
Cash & Investment Balances - Beginning of Month/Period $ 84,537,775.89 $ 81,558,113.19 Receipts 10,160,855.17 95,862,026.58
Disbursements (3,838,690.61) (86,560,199.32)
Cash & Investment Balances - End of Month/Period $90,859,940.45 $90,859,940.45 Portfolio Allocation Amount % of Portfolio
Max. % or $ Allowed
per State Law or Policy
BNY MM $81,231.65 0.11% 20% of Town Portfolio
US Treasury Notes $26,297,230.82 34.73% No Max. on US Treasuries Government Agency Debenture Notes $12,162,749.31 16.06% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $15,461,312.80 20.42% 30% of Town Portfolio Local Agency Investment Fund $21,712,191.07 28.68% $75 M per State Law Subtotal - Investments 75,714,715.65 100.00%
Reconciled Demand Deposit Balances 15,145,224.80
Total Portfolio Allocation & Treasurer's Cash Balances $90,859,940.45
0.0401
0.0388
Town of Los Gatos
Portfolio Allocation & Treasurer's Cash Balances
June 30, 2026
BNY MM
0.11%
US Treasury Notes
34.73%
Government Agency
Debenture Notes
16.06%
Corporate Medium Term
Bonds
20.42%
Local Agency Investment Fund
28.68%
Portfolio Investment Allocation
$81.6 M
$90.9 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
$100.0 M
Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Treasurer's Fund Balances
2
ITEM NO. 3.
June 2026
June 2026 Interest/ June 2026
Beginning Deposits Unrealized Gains (Losses)/ Withdrawals / Ending Balance Realized Gain/Adj. Gains (Losses) Fees Balance
Non-Treasury Funds:
Cert. of Participation 2002 Ser A Reserve Fund $ 706,135.27 $ - $ 1,866.51 $ - $ 708,001.78 Note 1 Cert. of Participation 2010 Ser Lease Payment Fund 85.50 - 0.26 - $ 85.76 Note 2 Cert. of Participation 2002 Ser A Lease Payment Fund 145.42 - 0.31 - $ 145.73 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,322,763.04 - 3,939.21 - $ 1,326,702.25 Note 2 Total Restricted Funds: $ 2,029,129.23 $ - $ 5,806.29 $ - $ 2,034,935.52 CEPPT IRS Section 115 Trust 4,053,665.94 - 2,700.30 (764.85) $ 4,055,601.39 Note 3 Grand Total COP's and CEPPT Trust $ 6,082,795.17 $ - $ 8,506.59 $ (764.85) $ 6,090,536.91 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
June 30, 2026
3
ITEM NO. 3.
July 2025 $ 238,713.97
August 2025 $ 238,367.28
September 2025 $ 259,685.13
October 2025 $ 228,769.00
November 2025 $ 220,968.79
December 2025 $ 234,197.60
January 2026 $ 228,526.08
February 2026 $ 205,910.96
March 2026 $ 238,556.51
April 2026 $ 244,476.90
May 2026 $ 275,093.46
June 2026 $ 249,969.13
$ 2,863,234.81
Town of Los Gatos
Statement of Interest Earned
June 30, 2026
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) 1,281,722.00 53,131.00 6/21/2027 4.19% $ 121,687.22 $ 135,426.07 $ 53,554.19 356 FFCB 3133EN5V8 Gov. Agency Debenture 4.13% 1/17/2023 236,000.00 239,174.20 3,174.20 236,136.88 (3,037.32) 1/11/2027 3.76% $ 29,042.75 $ 21,918.24 $ 8,938.72 195 FHLB 3130AQF65 Gov. Agency Debenture 1.25% 11/30/2022 1,300,000.00 1,160,559.40 (139,440.60) 1,283,282.00 122,722.60 12/21/2026 4.15% $ 57,822.92 $ 130,709.25 $ 50,592.66 174 FHLB 3130APJH9 Gov. Agency Debenture 1.00% 1/17/2023 1,000,000.00 907,010.00 (92,990.00) 995,500.00 88,490.00 10/28/2026 4.17% $ 33,354.17 $ 84,829.28 $ 34,595.18 120 FFCB 3133EN5N6 Gov. Agency Debenture 4.00% 2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,696,940.00 (9,792.00) 1/6/2028 3.91% $ 197,955.56 $ 159,363.33 $ 66,629.57 555 American Honda 02665WED9 Corporate Bond 4.70% 5/11/2023 600,000.00 608,856.00 8,856.00 601,002.00 (7,854.00) 1/12/2028 4.34% $ 75,278.33 $ 56,288.41 $ 26,306.36 561 US Treasury 91282CEF4 US Treasury Note 2.50% 6/9/2023 1,500,000.00 1,416,626.12 (83,373.88) 1,483,245.00 66,618.88 3/31/2027 4.09% $ 105,327.87 $ 122,333.72 $ 59,377.40 274 Colgate-Palmolive 194162AR4 Corporate Bond 4.60% 7/14/2023 500,000.00 504,655.00 4,655.00 503,090.00 (1,565.00) 2/1/2028 4.37% $ 60,502.79 $ 43,173.83 $ 21,978.31 581 FFCB 3133EPQC2 Gov. Agency Debenture 4.63% 7/17/2023 500,000.00 501,957.50 1,957.50 500,160.00 (1,797.50) 7/17/2026 4.48% $ 57,812.50 $ 43,961.07 $ 22,473.10 17 FFCB 3133EPBM6 Gov. Agency Debenture 4.13% 7/14/2023 600,000.00 596,220.00 (3,780.00) 599,928.00 3,708.00 8/23/2027 4.29% $ 64,556.25 $ 50,424.13 $ 25,669.19 419 PNC Bank 69353RFJ2 Corporate Bond 3.25% 7/25/2023 1,000,000.00 921,490.00 (78,510.00) 982,950.00 61,460.00 12/23/2027 5.23% $ 80,979.17 $ 97,247.67 $ 50,276.77 541 US Treasury 91282CFU0 US Treasury Note 4.13% 7/31/2023 1,300,000.00 1,290,660.60 (9,339.40) 1,299,441.00 8,780.40 10/31/2027 4.31% $ 147,468.75 $ 107,052.11 $ 55,820.03 488 Toyota Motor Credit 89236TKL8 Corporate Bond 5.45% 8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,624,112.00 6,944.00 11/10/2027 5.16% $ 236,166.67 $ 153,725.55 $ 83,125.67 498 US Treasury 912810FE3 US Treasury Note 5.50% 10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,232,952.00 (5,255.14) 8/15/2028 4.76% $ 156,211.96 $ 101,335.84 $ 58,156.58 777 FFCB 3133EPUW3 Gov. Agency Debenture 4.75% 10/13/2023 1,000,000.00 994,338.00 (5,662.00) 1,001,220.00 6,882.00 9/1/2026 4.96% $ 113,208.33 $ 84,828.57 $ 49,460.75 63 US Treasury 91282CEW7 US Treasury Note 3.25% 10/16/2023 1,000,000.00 950,039.06 (49,960.94) 991,700.00 41,660.94 6/30/2027 4.73% $ 87,961.96 $ 78,477.53 $ 45,978.01 365 US Treasury 91282CEN7 US Treasury Note 2.75% 10/31/2023 1,300,000.00 1,214,336.39 (85,663.61) 1,286,012.00 71,675.61 4/30/2027 4.82% $ 89,375.00 $ 100,336.49 $ 60,234.90 304 US Treasury 91282CCH2 US Treasury Note 1.25% 12/21/2023 900,000.00 798,647.55 (101,352.45) 850,428.00 51,780.45 6/30/2028 3.99% $ 28,430.71 $ 51,319.84 $ 33,629.70 731 FNMA 3135G0Q22 Gov. Agency Debenture 1.88% 12/21/2023 900,000.00 845,676.00 (54,324.00) 895,770.00 50,094.00 9/24/2026 4.22% $ 38,109.38 $ 55,770.03 $ 36,545.89 86 US Treasury 91282CFB2 US Treasury Note 2.75% 1/2/2024 1,000,000.00 960,354.91 (39,645.09) 985,470.00 25,115.09 7/31/2027 3.95% $ 57,167.12 $ 57,605.73 $ 38,579.98 396 US Treasury 91282CHE4 US Treasury Note 3.63% 1/17/2024 1,800,000.00 1,775,185.72 (24,814.28) 1,782,702.00 7,516.28 5/31/2028 3.97% $ 154,567.63 $ 102,986.91 $ 70,924.94 701 JP Morgan Chase 46647PDG8 Corporate Bond 4.85% 2/1/2024 1,400,000.00 1,396,528.00 (3,472.00) 1,404,270.00 7,742.00 7/25/2027 4.93% $ 134,696.10 $ 97,231.80 $ 68,911.86 390 US Bancorp 91159HJF8 Corporate Bond 4.55% 2/5/2024 1,000,000.00 989,200.00 (10,800.00) 1,000,280.00 11,080.00 7/22/2027 4.89% $ 89,317.67 $ 68,041.60 $ 48,601.14 387 FFCB 3133EP5U5 Gov. Agency Debenture 4.13% 3/28/2024 1,700,000.00 1,687,981.00 (12,019.00) 1,697,365.00 9,384.00 3/20/2029 4.28% $ 138,691.67 $ 91,219.09 $ 72,538.06 994 US Treasury 9128285M8 US Treasury Note 3.13% 4/30/2024 1,200,000.00 1,123,832.14 (76,167.86) 1,172,292.00 48,459.86 11/15/2028 4.69% $ 76,545.34 $ 63,313.82 $ 54,247.75 869 Cisco Systems 17275RBR2 Corporate Bond 4.85% 5/15/2024 1,000,000.00 999,130.00 (870.00) 1,010,910.00 11,780.00 1/26/2029 4.87% $ 86,356.94 $ 54,820.58 $ 48,684.94 941 Home Depot 437076CW0 Corporate Bond 4.90% 5/17/2024 1,000,000.00 1,001,790.00 1,790.00 1,013,540.00 11,750.00 3/15/2029 4.86% $ 93,644.44 $ 54,491.59 $ 48,629.41 989 Treasury 91282CJR3 US Treasury Note 3.75% 5/31/2024 1,200,000.00 1,154,629.02 (45,370.98) 1,188,420.00 33,790.98 12/31/2028 4.68% $ 93,708.79 $ 59,398.06 $ 54,886.81 915 Citibank 17325FBK3 Corporate Bond 4.84% 8/15/2024 1,250,000.00 1,263,062.50 13,062.50 1,260,387.50 (2,675.00) 7/6/2029 4.60% $ 89,200.62 $ 50,520.38 $ 57,805.45 1102 FNMA 3135G05Y5 Gov. Agency Debenture 0.75% 9/10/2024 1,100,000.00 1,010,724.00 (89,276.00) 1,054,647.00 43,923.00 10/8/2027 3.56% $ 13,016.67 $ 29,915.45 $ 37,266.69 465 US Treasury 91282CFL0 US Treasury Note 3.88% 12/3/2024 1,100,000.00 1,088,144.31 (11,855.69) 1,090,595.00 2,450.69 9/30/2029 4.12% $ 56,442.99 $ 25,813.46 $ 45,080.92 1188 FHLB 3130ATUT2 Gov. Agency Debenture 4.50% 2/12/2025 505,000.00 508,253.21 3,253.21 510,231.80 1,978.59 12/14/2029 4.35% $ 30,426.25 $ 8,337.70 $ 22,052.62 1263 FFCB 3133ER5X5 Gov. Agency Debenture 3.88% 3/12/2025 1,000,000.00 998,480.00 (1,520.00) 994,770.00 (3,710.00) 3/7/2028 3.93% $ 38,211.81 $ 11,831.34 $ 39,258.52 616 Treasury 91282CJF9 US Treasury Note 4.88% 3/31/2025 1,100,000.00 1,130,167.75 30,167.75 1,117,270.00 (12,897.75) 10/31/2028 4.04% $ 58,069.06 $ 11,273.90 $ 45,219.48 854 State Street Corp 857477CD3 Corporate Bond 5.27% 4/30/2025 800,000.00 811,184.00 11,184.00 800,080.00 (11,104.00) 7/3/2026 4.04% $ 31,983.47 $ 5,458.33 $ 32,660.48 3 Freddie Mac 3134HAW33 Gov. Agency Debenture 4.75% 4/30/2025 1,000,000.00 1,005,644.00 5,644.00 998,300.00 (7,344.00) 12/18/2029 4.23% $ 54,493.07 $ 7,735.00 $ 46,283.19 1267 US Treasury 91282CNG2 US Treasury Note 4.00% 6/30/2025 660,000.00 665,184.24 5,184.24 655,927.80 (9,256.44) 5/31/2030 3.82% $ 24,236.08 $ - $ 25,346.41 1431 US Treasury 91282CMG3 US Treasury Note 4.25% 8/4/2025 825,000.00 842,308.43 17,308.43 827,227.50 (15,080.93) 1/31/2030 3.74% $ 17,150.14 $ - $ 28,219.67 1311 US Treasury 91282CMA6 US Treasury Note 4.13% 8/25/2025 1,200,000.00 1,218,847.77 18,847.77 1,198,644.00 (20,203.77) 11/30/2029 3.72% $ 37,868.86 $ - $ 38,167.38 1249 US Treasury 91282CHR5 US Treasury Note 4.00% 9/23/2025 950,000.00 967,036.38 17,036.38 943,654.00 (23,382.38) 7/31/2030 3.59% $ 13,423.92 $ - $ 26,458.71 1492 US Treasury 91282CGQ8 US Treasury Note 4.00% 10/3/2025 1,000,000.00 1,013,362.72 13,362.72 994,490.00 (18,872.72) 2/28/2030 3.67% $ 16,353.59 $ - $ 27,346.70 1339 State Street Corp 857477DB6 Corporate Bond 4.83% 11/10/2025 580,000.00 596,535.80 16,535.80 586,188.60 (10,347.20) 3/24/2030 4.13% $ 12,772.51 $ - $ 15,415.70 1363 US Treasury 91282CKA8 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,157,775.34 7,775.34 1,150,667.00 (7,108.34) 2/15/2027 3.52% $ 7,734.37 $ - $ 21,775.81 230 US Treasury 91282CHW4 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,170,308.54 20,308.54 1,147,435.50 (22,873.04) 8/31/2030 3.71% $ 9,566.13 $ - $ 23,038.22 1523 US Treasury 91282CHZ7 US Treasury Note 4.63% 1/13/2026 1,050,000.00 1,089,087.89 39,087.89 1,067,881.50 (21,206.39) 9/30/2030 3.75% $ 10,272.84 $ - $ 18,536.39 1553 Morgan Stanley Pvt Bank 61776NU43 Corporate Bond 4.21% 2/26/2026 1,250,000.00 1,254,137.50 4,137.50 1,234,087.50 (20,050.00) 3,510.83 2/8/2029 4.09% $ (3,510.83) $ - $ 17,414.89 954 John Deere Capital Corp 24422EXN4 Corporate Bond 4.90% 3/17/2026 1,000,000.00 1,024,660.00 24,660.00 1,013,820.00 (10,840.00) 1,361.11 3/7/2031 4.34% $ (1,361.11) $ - $ 12,670.06 1711 US Treasury 91282CLC3 US Treasury Note 4.00% 4/6/2026 1,050,000.00 1,053,691.41 3,691.41 1,045,443.00 (8,248.41) 7,541.44 7/31/2029 3.88% $ (7,541.44) $ - $ 9,521.94 1127 US Treasury 91282CMB4 US Treasury Note 4.00% 4/6/2026 1,050,000.00 1,052,378.91 2,378.91 1,047,784.50 (4,594.41) 12/15/2027 3.86% $ 8,076.92 $ - $ 9,453.63 533 Bank of America 06051GMY2 Corporate Bond 4.48% 6/1/2026 1,250,000.00 1,244,325.00 (5,675.00) 1,242,600.00 (1,725.00) 5,907.15 4/23/2029 4.65% $ (5,907.15) $ - $ 4,602.04 1028 US Treasury 91282CKN0 US Treasury Note 4.63% 6/15/2026 650,000.00 662,037.33 12,037.33 662,135.50 98.17 3,757.81 4/30/2031 4.20% $ (3,757.81) $ - $ 1,134.01 1765 US Treasury 91282CJG7 US Treasury Note 4.88% 6/15/2026 650,000.00 667,801.01 17,801.01 667,569.50 (231.51) 3,960.94 10/31/2030 4.18% $ (3,960.94) $ - $ 1,135.24 1584 US Treasury 91282CMW8 US Treasury Note 3.75% 6/15/2026 600,000.00 596,580.14 (3,419.86) 595,854.00 (726.14) 3,750.00 4/15/2028 4.07% $ (3,750.00) $ - $ 1,001.22 655 Subtotal $ 54,656,000.00 $ 53,921,292.93 $ (734,707.07) $ 54,508,531.08 $ 587,238.15 $ 29,789.28 $ 3,205,458.01 $ 2,478,515.67 $ 1,956,213.22 BNY MM Money Market 81,231.65 81,231.65 0.00 0.00% 1
LAIF State Investment Pool 21,712,191.07 21,687,708.01 (24,483.06) 3.82% 570,368.96 1 75,714,715.65 $76,277,470.74 $562,755.09 $29,789.28 $ 3,205,458.01 $ 2,478,515.67 $ 2,526,582.18 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 FannieMae 3135G06G3 Gov. Agency Debenture 0.50% 7/14/2023 500,000.00 455,157.00 (44,843.00) 11/7/2025 4.63% $ 5,784.72 $ 42,871.33 $ 7,773.04 US Treasury 91282CGA3 US Treasury Note 4.00% 6/20/2023 2,100,000.00 2,080,558.59 (19,441.41) 12/15/2025 4.40% $ 208,852.46 $ 186,379.78 $ 42,256.15 American Honda 02665WEY3 Corporate Bond 4.95% 6/27/2024 1,000,000.00 995,640.00 (4,360.00) 1/9/2026 5.25% $ 76,037.50 $ 52,766.88 $ 27,673.94 Pepsico Inc 713448DF2 Corporate Bond 2.85% 10/16/2023 1,000,000.00 947,570.00 (52,430.00) 2/24/2026 5.24% $ 67,133.33 $ 86,538.35 $ 33,198.50 FHLB 3130AXB31 Gov. Agency Debenture 4.88% 2/27/2024 1,000,000.00 1,003,060.00 3,060.00 3/13/2026 4.72% $ 100,479.17 $ 63,303.13 $ 33,140.29 US Treasury 91282CBT7 US Treasury Note 0.75% 9/30/2022 800,000.00 712,565.18 (87,434.82) 3/31/2026 4.14% $ 21,000.00 $ 85,193.12 $ 23,249.92 Home Depot 437076BM3 Corporate Bond 3.00% 8/4/2022 1,000,000.00 991,960.00 (8,040.00) 4/1/2026 3.04% $ 94,750.00 $ 93,590.54 $ 24,257.68 Treasury 91282CHB0 US Treasury Note 3.63% 2/23/2024 1,175,000.00 1,151,962.92 (23,037.08) 5/15/2026 4.56% $ 94,782.80 $ 71,517.53 $ 46,276.05 JP Morgan Chase 46625HRS1 Corporate Bond 3.20% 9/23/2022 500,000.00 474,660.00 (25,340.00) 6/15/2026 4.70% $ 59,644.44 $ 63,141.28 $ 21,859.00 FHLB 3130B1BT3 Gov. Agency Debenture 4.88% 7/2/2024 1,150,000.00 1,150,966.00 966.00 6/12/2026 4.82% $ 103,404.17 $ 55,261.42 $ 52,825.66 Total Interest from Matured Investments $ 336,652.63
Total Interest FY 2025-26, Matured and Current $ 2,863,234.81 Maturity Profile Amount Percent
0-1 year $ 33,220,689.73 44%
1-2 years $16,025,213.28 21%
2-3 years $11,632,847.10 15%
3-5 years $ 14,835,965.54 20%
$75,714,715.65 100%
Town of Los Gatos
Investment Schedule
June 30, 2026
5
ITEM NO. 3.
Date Cusip/Id Description Transaction Type Trade Date Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction
Total
6/1/2026 06051GMY2
BANK OF AMERICA CORP 4.477%
23APR2030 (CALLABLE 23APR29) PURCHASE 5/29/2026 6/1/2026 1,250,000.00 4.477% 4/23/2030 99.55 1,244,325.00 5,907.15 1,250,232.15 6/1/2026 91282CMA6 USA TREASURY 4.125% 30NOV2029 BOND INTEREST 5/31/2026 6/1/2026 1,200,000.00 4.125% 11/30/2029 - - 24,750.00 24,750.00 6/1/2026 91282CNG2 USA TREASURY 4% 31MAY2030 BOND INTEREST 5/31/2026 6/1/2026 660,000.00 4.000% 5/31/2030 - - 13,200.00 13,200.00 6/1/2026 91282CHE4 USA TREASURY 3.625% 31MAY2028 BOND INTEREST 5/31/2026 6/1/2026 1,800,000.00 3.625% 5/31/2028 - - 32,625.00 32,625.00 6/2/2026 Cash-USD Cash-USD
SHORT TERM INVESTMENT
FUND INCOME 6/2/2026 6/2/2026 2,480.59 0.000% 100.00 - - 2,480.59 6/12/2026 3130B1BT3
FEDERAL HOME LOAN BANK 4.875%
12JUN2026 BOND INTEREST 6/12/2026 6/12/2026 1,150,000.00 0.000% 6/12/2026 - - 28,031.25 28,031.25 6/15/2026 91282CJG7 USA TREASURY 4.875% 31OCT2030 PURCHASE 6/12/2026 6/15/2026 650,000.00 4.875% 10/31/2030 102.74 667,801.01 3,960.94 671,761.95 6/15/2026 91282CMW8 USA TREASURY 3.75% 15APR2028 PURCHASE 6/12/2026 6/15/2026 600,000.00 3.750% 4/15/2028 99.43 596,580.14 3,750.00 600,330.14 6/15/2026 91282CKN0 USA TREASURY 4.625% 30APR2031 PURCHASE 6/12/2026 6/15/2026 650,000.00 4.625% 4/30/2031 101.85 662,037.33 3,757.81 665,795.14 6/12/2026 3130B1BT3
FEDERAL HOME LOAN BANK 4.875%
12JUN2026 REDEMPTION 6/12/2026 6/12/2026 1,150,000.00 0.000% 6/12/2026 100.00 1,150,000.00 - 1,150,000.00 6/15/2026 3130ATUT2
FEDERAL HOME LOAN BANK 4.5%
14DEC2029 BOND INTEREST 6/14/2026 6/14/2026 505,000.00 4.500% 12/14/2029 - - 11,362.50 11,362.50 6/15/2026 46625HRS1
JPMORGAN CHASE & CO 3.2%
15JUN2026 CALLABLE BOND INTEREST 6/15/2026 6/15/2026 500,000.00 0.000% 6/15/2026 - - 8,000.00 8,000.00 6/15/2026 91282CMB4 USA TREASURY 4% 15DEC2027 BOND INTEREST 6/15/2026 6/15/2026 1,050,000.00 4.000% 12/15/2027 - - 21,000.00 21,000.00 6/15/2026 46625HRS1
JPMORGAN CHASE & CO 3.2%
15JUN2026 CALLABLE REDEMPTION 6/15/2026 6/15/2026 500,000.00 0.000% 6/15/2026 100.00 500,000.00 - 500,000.00 6/18/2026 3134HAW33
FREDDIE MAC 4.75% 18DEC2029
(CALLABLE 18SEP26) BOND INTEREST 6/18/2026 6/18/2026 1,000,000.00 4.750% 12/18/2029 - - 23,750.00 23,750.00 6/22/2026 3130AQF65
FEDERAL HOME LOAN BANK 1.25%
21DEC2026 BOND INTEREST 6/21/2026 6/21/2026 1,300,000.00 1.250% 12/21/2026 - - 8,125.00 8,125.00 6/30/2026 91282CJR3 USA TREASURY 3.75% 31DEC2028 BOND INTEREST 6/30/2026 6/30/2026 1,200,000.00 3.750% 12/31/2028 - - 22,500.00 22,500.00 6/30/2026 91282CCH2 USA TREASURY 1.25% 30JUN2028 BOND INTEREST 6/30/2026 6/30/2026 900,000.00 1.250% 6/30/2028 - - 5,625.00 5,625.00 6/30/2026 91282CEW7 USA TREASURY 3.25% 30JUN2027 BOND INTEREST 6/30/2026 6/30/2026 1,000,000.00 3.250% 6/30/2027 - - 16,250.00 16,250.00 Town of Los Gatos
Investment Transaction Detail
June 30, 2026
6
ITEM NO. 3.
Weighted Average YTM Portfolio Yield on Investments
under Management 4.19%
Weighted Average Maturity (days) 547
This Month Last Month One year ago
Portfolio Allocation & Treasurer's Cash Balances $90,859,940 $84,537,776 $81,558,113 Managed Investments $54,002,525
Local Agency Investment Fund $21,712,191
Reconciled Demand Deposit Balances $15,145,225
Portfolio Allocation & Treasurer's Cash Balances $90,859,940 Benchmarks/ References:
Town's Average Yield 4.19% 4.18% 4.39%
LAIF Yield for month 3.82% 3.81% 4.27%
3 mo. Treasury 3.81% 3.67% 4.29%
6 mo. Treasury 3.97% 3.74% 4.25%
2 yr. Treasury 4.17% 4.00% 3.72%
5 yr. Treasury 4.23% 4.14% 3.80%
10 Yr. Treasury 4.47% 4.44% 4.23%
Town of Los Gatos
Summary Investment Information
June 30, 2026
0 - 1 year
44%
1 - 2 years
21%
2 - 3 years
15%
3 - 5 years
20%
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 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. 1 Attachment 3
ITEM NO. 3.
Month YTD
Cash & Investment Balances - Beginning of Month/Period $ 84,537,775.89 $ 81,558,113.19 Receipts 10,160,855.17 95,862,026.58
Disbursements (3,838,690.61) (86,560,199.32)
Cash & Investment Balances - End of Month/Period $90,859,940.45 $90,859,940.45 Portfolio Allocation Amount % of Portfolio
Max. % or $ Allowed
per State Law or Policy
BNY MM $81,231.65 0.11% 20% of Town Portfolio
US Treasury Notes $26,297,230.82 34.73% No Max. on US Treasuries Government Agency Debenture Notes $12,162,749.31 16.06% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $15,461,312.80 20.42% 30% of Town Portfolio Local Agency Investment Fund $21,712,191.07 28.68% $75 M per State Law Subtotal - Investments 75,714,715.65 100.00%
Reconciled Demand Deposit Balances 15,145,224.80
Total Portfolio Allocation & Treasurer's Cash Balances $90,859,940.45
0.0401
0.0388
Town of Los Gatos
Portfolio Allocation & Treasurer's Cash Balances
June 30, 2026
BNY MM
0.11%
US Treasury Notes
34.73%
Government Agency
Debenture Notes
16.06%
Corporate Medium Term
Bonds
20.42%
Local Agency Investment Fund
28.68%
Portfolio Investment Allocation
$81.6 M
$90.9 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
$100.0 M
Jun-25 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Treasurer's Fund Balances
2
ITEM NO. 3.
June 2026
June 2026 Interest/ June 2026
Beginning Deposits Unrealized Gains (Losses)/ Withdrawals / Ending Balance Realized Gain/Adj. Gains (Losses) Fees Balance
Non-Treasury Funds:
Cert. of Participation 2002 Ser A Reserve Fund $ 706,135.27 $ - $ 1,866.51 $ - $ 708,001.78 Note 1 Cert. of Participation 2010 Ser Lease Payment Fund 85.50 - 0.26 - $ 85.76 Note 2 Cert. of Participation 2002 Ser A Lease Payment Fund 145.42 - 0.31 - $ 145.73 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,322,763.04 - 3,939.21 - $ 1,326,702.25 Note 2 Total Restricted Funds: $ 2,029,129.23 $ - $ 5,806.29 $ - $ 2,034,935.52 CEPPT IRS Section 115 Trust 4,053,665.94 - 2,700.30 (764.85) $ 4,055,601.39 Note 3 Grand Total COP's and CEPPT Trust $ 6,082,795.17 $ - $ 8,506.59 $ (764.85) $ 6,090,536.91 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
June 30, 2026
3
ITEM NO. 3.
July 2025 $ 238,713.97
August 2025 $ 238,367.28
September 2025 $ 259,685.13
October 2025 $ 228,769.00
November 2025 $ 220,968.79
December 2025 $ 234,197.60
January 2026 $ 228,526.08
February 2026 $ 205,910.96
March 2026 $ 238,556.51
April 2026 $ 244,476.90
May 2026 $ 275,093.46
June 2026 $ 249,969.13
$ 2,863,234.81
Town of Los Gatos
Statement of Interest Earned
June 30, 2026
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) 1,281,722.00 53,131.00 6/21/2027 4.19% $ 121,687.22 $ 135,426.07 $ 53,554.19 356 FFCB 3133EN5V8 Gov. Agency Debenture 4.13% 1/17/2023 236,000.00 239,174.20 3,174.20 236,136.88 (3,037.32) 1/11/2027 3.76% $ 29,042.75 $ 21,918.24 $ 8,938.72 195 FHLB 3130AQF65 Gov. Agency Debenture 1.25% 11/30/2022 1,300,000.00 1,160,559.40 (139,440.60) 1,283,282.00 122,722.60 12/21/2026 4.15% $ 57,822.92 $ 130,709.25 $ 50,592.66 174 FHLB 3130APJH9 Gov. Agency Debenture 1.00% 1/17/2023 1,000,000.00 907,010.00 (92,990.00) 995,500.00 88,490.00 10/28/2026 4.17% $ 33,354.17 $ 84,829.28 $ 34,595.18 120 FFCB 3133EN5N6 Gov. Agency Debenture 4.00% 2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,696,940.00 (9,792.00) 1/6/2028 3.91% $ 197,955.56 $ 159,363.33 $ 66,629.57 555 American Honda 02665WED9 Corporate Bond 4.70% 5/11/2023 600,000.00 608,856.00 8,856.00 601,002.00 (7,854.00) 1/12/2028 4.34% $ 75,278.33 $ 56,288.41 $ 26,306.36 561 US Treasury 91282CEF4 US Treasury Note 2.50% 6/9/2023 1,500,000.00 1,416,626.12 (83,373.88) 1,483,245.00 66,618.88 3/31/2027 4.09% $ 105,327.87 $ 122,333.72 $ 59,377.40 274 Colgate-Palmolive 194162AR4 Corporate Bond 4.60% 7/14/2023 500,000.00 504,655.00 4,655.00 503,090.00 (1,565.00) 2/1/2028 4.37% $ 60,502.79 $ 43,173.83 $ 21,978.31 581 FFCB 3133EPQC2 Gov. Agency Debenture 4.63% 7/17/2023 500,000.00 501,957.50 1,957.50 500,160.00 (1,797.50) 7/17/2026 4.48% $ 57,812.50 $ 43,961.07 $ 22,473.10 17 FFCB 3133EPBM6 Gov. Agency Debenture 4.13% 7/14/2023 600,000.00 596,220.00 (3,780.00) 599,928.00 3,708.00 8/23/2027 4.29% $ 64,556.25 $ 50,424.13 $ 25,669.19 419 PNC Bank 69353RFJ2 Corporate Bond 3.25% 7/25/2023 1,000,000.00 921,490.00 (78,510.00) 982,950.00 61,460.00 12/23/2027 5.23% $ 80,979.17 $ 97,247.67 $ 50,276.77 541 US Treasury 91282CFU0 US Treasury Note 4.13% 7/31/2023 1,300,000.00 1,290,660.60 (9,339.40) 1,299,441.00 8,780.40 10/31/2027 4.31% $ 147,468.75 $ 107,052.11 $ 55,820.03 488 Toyota Motor Credit 89236TKL8 Corporate Bond 5.45% 8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,624,112.00 6,944.00 11/10/2027 5.16% $ 236,166.67 $ 153,725.55 $ 83,125.67 498 US Treasury 912810FE3 US Treasury Note 5.50% 10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,232,952.00 (5,255.14) 8/15/2028 4.76% $ 156,211.96 $ 101,335.84 $ 58,156.58 777 FFCB 3133EPUW3 Gov. Agency Debenture 4.75% 10/13/2023 1,000,000.00 994,338.00 (5,662.00) 1,001,220.00 6,882.00 9/1/2026 4.96% $ 113,208.33 $ 84,828.57 $ 49,460.75 63 US Treasury 91282CEW7 US Treasury Note 3.25% 10/16/2023 1,000,000.00 950,039.06 (49,960.94) 991,700.00 41,660.94 6/30/2027 4.73% $ 87,961.96 $ 78,477.53 $ 45,978.01 365 US Treasury 91282CEN7 US Treasury Note 2.75% 10/31/2023 1,300,000.00 1,214,336.39 (85,663.61) 1,286,012.00 71,675.61 4/30/2027 4.82% $ 89,375.00 $ 100,336.49 $ 60,234.90 304 US Treasury 91282CCH2 US Treasury Note 1.25% 12/21/2023 900,000.00 798,647.55 (101,352.45) 850,428.00 51,780.45 6/30/2028 3.99% $ 28,430.71 $ 51,319.84 $ 33,629.70 731 FNMA 3135G0Q22 Gov. Agency Debenture 1.88% 12/21/2023 900,000.00 845,676.00 (54,324.00) 895,770.00 50,094.00 9/24/2026 4.22% $ 38,109.38 $ 55,770.03 $ 36,545.89 86 US Treasury 91282CFB2 US Treasury Note 2.75% 1/2/2024 1,000,000.00 960,354.91 (39,645.09) 985,470.00 25,115.09 7/31/2027 3.95% $ 57,167.12 $ 57,605.73 $ 38,579.98 396 US Treasury 91282CHE4 US Treasury Note 3.63% 1/17/2024 1,800,000.00 1,775,185.72 (24,814.28) 1,782,702.00 7,516.28 5/31/2028 3.97% $ 154,567.63 $ 102,986.91 $ 70,924.94 701 JP Morgan Chase 46647PDG8 Corporate Bond 4.85% 2/1/2024 1,400,000.00 1,396,528.00 (3,472.00) 1,404,270.00 7,742.00 7/25/2027 4.93% $ 134,696.10 $ 97,231.80 $ 68,911.86 390 US Bancorp 91159HJF8 Corporate Bond 4.55% 2/5/2024 1,000,000.00 989,200.00 (10,800.00) 1,000,280.00 11,080.00 7/22/2027 4.89% $ 89,317.67 $ 68,041.60 $ 48,601.14 387 FFCB 3133EP5U5 Gov. Agency Debenture 4.13% 3/28/2024 1,700,000.00 1,687,981.00 (12,019.00) 1,697,365.00 9,384.00 3/20/2029 4.28% $ 138,691.67 $ 91,219.09 $ 72,538.06 994 US Treasury 9128285M8 US Treasury Note 3.13% 4/30/2024 1,200,000.00 1,123,832.14 (76,167.86) 1,172,292.00 48,459.86 11/15/2028 4.69% $ 76,545.34 $ 63,313.82 $ 54,247.75 869 Cisco Systems 17275RBR2 Corporate Bond 4.85% 5/15/2024 1,000,000.00 999,130.00 (870.00) 1,010,910.00 11,780.00 1/26/2029 4.87% $ 86,356.94 $ 54,820.58 $ 48,684.94 941 Home Depot 437076CW0 Corporate Bond 4.90% 5/17/2024 1,000,000.00 1,001,790.00 1,790.00 1,013,540.00 11,750.00 3/15/2029 4.86% $ 93,644.44 $ 54,491.59 $ 48,629.41 989 Treasury 91282CJR3 US Treasury Note 3.75% 5/31/2024 1,200,000.00 1,154,629.02 (45,370.98) 1,188,420.00 33,790.98 12/31/2028 4.68% $ 93,708.79 $ 59,398.06 $ 54,886.81 915 Citibank 17325FBK3 Corporate Bond 4.84% 8/15/2024 1,250,000.00 1,263,062.50 13,062.50 1,260,387.50 (2,675.00) 7/6/2029 4.60% $ 89,200.62 $ 50,520.38 $ 57,805.45 1102 FNMA 3135G05Y5 Gov. Agency Debenture 0.75% 9/10/2024 1,100,000.00 1,010,724.00 (89,276.00) 1,054,647.00 43,923.00 10/8/2027 3.56% $ 13,016.67 $ 29,915.45 $ 37,266.69 465 US Treasury 91282CFL0 US Treasury Note 3.88% 12/3/2024 1,100,000.00 1,088,144.31 (11,855.69) 1,090,595.00 2,450.69 9/30/2029 4.12% $ 56,442.99 $ 25,813.46 $ 45,080.92 1188 FHLB 3130ATUT2 Gov. Agency Debenture 4.50% 2/12/2025 505,000.00 508,253.21 3,253.21 510,231.80 1,978.59 12/14/2029 4.35% $ 30,426.25 $ 8,337.70 $ 22,052.62 1263 FFCB 3133ER5X5 Gov. Agency Debenture 3.88% 3/12/2025 1,000,000.00 998,480.00 (1,520.00) 994,770.00 (3,710.00) 3/7/2028 3.93% $ 38,211.81 $ 11,831.34 $ 39,258.52 616 Treasury 91282CJF9 US Treasury Note 4.88% 3/31/2025 1,100,000.00 1,130,167.75 30,167.75 1,117,270.00 (12,897.75) 10/31/2028 4.04% $ 58,069.06 $ 11,273.90 $ 45,219.48 854 State Street Corp 857477CD3 Corporate Bond 5.27% 4/30/2025 800,000.00 811,184.00 11,184.00 800,080.00 (11,104.00) 7/3/2026 4.04% $ 31,983.47 $ 5,458.33 $ 32,660.48 3 Freddie Mac 3134HAW33 Gov. Agency Debenture 4.75% 4/30/2025 1,000,000.00 1,005,644.00 5,644.00 998,300.00 (7,344.00) 12/18/2029 4.23% $ 54,493.07 $ 7,735.00 $ 46,283.19 1267 US Treasury 91282CNG2 US Treasury Note 4.00% 6/30/2025 660,000.00 665,184.24 5,184.24 655,927.80 (9,256.44) 5/31/2030 3.82% $ 24,236.08 $ - $ 25,346.41 1431 US Treasury 91282CMG3 US Treasury Note 4.25% 8/4/2025 825,000.00 842,308.43 17,308.43 827,227.50 (15,080.93) 1/31/2030 3.74% $ 17,150.14 $ - $ 28,219.67 1311 US Treasury 91282CMA6 US Treasury Note 4.13% 8/25/2025 1,200,000.00 1,218,847.77 18,847.77 1,198,644.00 (20,203.77) 11/30/2029 3.72% $ 37,868.86 $ - $ 38,167.38 1249 US Treasury 91282CHR5 US Treasury Note 4.00% 9/23/2025 950,000.00 967,036.38 17,036.38 943,654.00 (23,382.38) 7/31/2030 3.59% $ 13,423.92 $ - $ 26,458.71 1492 US Treasury 91282CGQ8 US Treasury Note 4.00% 10/3/2025 1,000,000.00 1,013,362.72 13,362.72 994,490.00 (18,872.72) 2/28/2030 3.67% $ 16,353.59 $ - $ 27,346.70 1339 State Street Corp 857477DB6 Corporate Bond 4.83% 11/10/2025 580,000.00 596,535.80 16,535.80 586,188.60 (10,347.20) 3/24/2030 4.13% $ 12,772.51 $ - $ 15,415.70 1363 US Treasury 91282CKA8 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,157,775.34 7,775.34 1,150,667.00 (7,108.34) 2/15/2027 3.52% $ 7,734.37 $ - $ 21,775.81 230 US Treasury 91282CHW4 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,170,308.54 20,308.54 1,147,435.50 (22,873.04) 8/31/2030 3.71% $ 9,566.13 $ - $ 23,038.22 1523 US Treasury 91282CHZ7 US Treasury Note 4.63% 1/13/2026 1,050,000.00 1,089,087.89 39,087.89 1,067,881.50 (21,206.39) 9/30/2030 3.75% $ 10,272.84 $ - $ 18,536.39 1553 Morgan Stanley Pvt Bank 61776NU43 Corporate Bond 4.21% 2/26/2026 1,250,000.00 1,254,137.50 4,137.50 1,234,087.50 (20,050.00) 3,510.83 2/8/2029 4.09% $ (3,510.83) $ - $ 17,414.89 954 John Deere Capital Corp 24422EXN4 Corporate Bond 4.90% 3/17/2026 1,000,000.00 1,024,660.00 24,660.00 1,013,820.00 (10,840.00) 1,361.11 3/7/2031 4.34% $ (1,361.11) $ - $ 12,670.06 1711 US Treasury 91282CLC3 US Treasury Note 4.00% 4/6/2026 1,050,000.00 1,053,691.41 3,691.41 1,045,443.00 (8,248.41) 7,541.44 7/31/2029 3.88% $ (7,541.44) $ - $ 9,521.94 1127 US Treasury 91282CMB4 US Treasury Note 4.00% 4/6/2026 1,050,000.00 1,052,378.91 2,378.91 1,047,784.50 (4,594.41) 12/15/2027 3.86% $ 8,076.92 $ - $ 9,453.63 533 Bank of America 06051GMY2 Corporate Bond 4.48% 6/1/2026 1,250,000.00 1,244,325.00 (5,675.00) 1,242,600.00 (1,725.00) 5,907.15 4/23/2029 4.65% $ (5,907.15) $ - $ 4,602.04 1028 US Treasury 91282CKN0 US Treasury Note 4.63% 6/15/2026 650,000.00 662,037.33 12,037.33 662,135.50 98.17 3,757.81 4/30/2031 4.20% $ (3,757.81) $ - $ 1,134.01 1765 US Treasury 91282CJG7 US Treasury Note 4.88% 6/15/2026 650,000.00 667,801.01 17,801.01 667,569.50 (231.51) 3,960.94 10/31/2030 4.18% $ (3,960.94) $ - $ 1,135.24 1584 US Treasury 91282CMW8 US Treasury Note 3.75% 6/15/2026 600,000.00 596,580.14 (3,419.86) 595,854.00 (726.14) 3,750.00 4/15/2028 4.07% $ (3,750.00) $ - $ 1,001.22 655 Subtotal $ 54,656,000.00 $ 53,921,292.93 $ (734,707.07) $ 54,508,531.08 $ 587,238.15 $ 29,789.28 $ 3,205,458.01 $ 2,478,515.67 $ 1,956,213.22 BNY MM Money Market 81,231.65 81,231.65 0.00 0.00% 1
LAIF State Investment Pool 21,712,191.07 21,687,708.01 (24,483.06) 3.82% 570,368.96 1 75,714,715.65 $76,277,470.74 $562,755.09 $29,789.28 $ 3,205,458.01 $ 2,478,515.67 $ 2,526,582.18 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 FannieMae 3135G06G3 Gov. Agency Debenture 0.50% 7/14/2023 500,000.00 455,157.00 (44,843.00) 11/7/2025 4.63% $ 5,784.72 $ 42,871.33 $ 7,773.04 US Treasury 91282CGA3 US Treasury Note 4.00% 6/20/2023 2,100,000.00 2,080,558.59 (19,441.41) 12/15/2025 4.40% $ 208,852.46 $ 186,379.78 $ 42,256.15 American Honda 02665WEY3 Corporate Bond 4.95% 6/27/2024 1,000,000.00 995,640.00 (4,360.00) 1/9/2026 5.25% $ 76,037.50 $ 52,766.88 $ 27,673.94 Pepsico Inc 713448DF2 Corporate Bond 2.85% 10/16/2023 1,000,000.00 947,570.00 (52,430.00) 2/24/2026 5.24% $ 67,133.33 $ 86,538.35 $ 33,198.50 FHLB 3130AXB31 Gov. Agency Debenture 4.88% 2/27/2024 1,000,000.00 1,003,060.00 3,060.00 3/13/2026 4.72% $ 100,479.17 $ 63,303.13 $ 33,140.29 US Treasury 91282CBT7 US Treasury Note 0.75% 9/30/2022 800,000.00 712,565.18 (87,434.82) 3/31/2026 4.14% $ 21,000.00 $ 85,193.12 $ 23,249.92 Home Depot 437076BM3 Corporate Bond 3.00% 8/4/2022 1,000,000.00 991,960.00 (8,040.00) 4/1/2026 3.04% $ 94,750.00 $ 93,590.54 $ 24,257.68 Treasury 91282CHB0 US Treasury Note 3.63% 2/23/2024 1,175,000.00 1,151,962.92 (23,037.08) 5/15/2026 4.56% $ 94,782.80 $ 71,517.53 $ 46,276.05 JP Morgan Chase 46625HRS1 Corporate Bond 3.20% 9/23/2022 500,000.00 474,660.00 (25,340.00) 6/15/2026 4.70% $ 59,644.44 $ 63,141.28 $ 21,859.00 FHLB 3130B1BT3 Gov. Agency Debenture 4.88% 7/2/2024 1,150,000.00 1,150,966.00 966.00 6/12/2026 4.82% $ 103,404.17 $ 55,261.42 $ 52,825.66 Total Interest from Matured Investments $ 336,652.63
Total Interest FY 2025-26, Matured and Current $ 2,863,234.81 Maturity Profile Amount Percent
0-1 year $ 33,220,689.73 44%
1-2 years $16,025,213.28 21%
2-3 years $11,632,847.10 15%
3-5 years $ 14,835,965.54 20%
$75,714,715.65 100%
Town of Los Gatos
Investment Schedule
June 30, 2026
5
ITEM NO. 3.
Date Cusip/Id Description Transaction Type Trade Date Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction
Total
6/1/2026 06051GMY2
BANK OF AMERICA CORP 4.477%
23APR2030 (CALLABLE 23APR29) PURCHASE 5/29/2026 6/1/2026 1,250,000.00 4.477% 4/23/2030 99.55 1,244,325.00 5,907.15 1,250,232.15 6/1/2026 91282CMA6 USA TREASURY 4.125% 30NOV2029 BOND INTEREST 5/31/2026 6/1/2026 1,200,000.00 4.125% 11/30/2029 - - 24,750.00 24,750.00 6/1/2026 91282CNG2 USA TREASURY 4% 31MAY2030 BOND INTEREST 5/31/2026 6/1/2026 660,000.00 4.000% 5/31/2030 - - 13,200.00 13,200.00 6/1/2026 91282CHE4 USA TREASURY 3.625% 31MAY2028 BOND INTEREST 5/31/2026 6/1/2026 1,800,000.00 3.625% 5/31/2028 - - 32,625.00 32,625.00 6/2/2026 Cash-USD Cash-USD
SHORT TERM INVESTMENT
FUND INCOME 6/2/2026 6/2/2026 2,480.59 0.000% 100.00 - - 2,480.59 6/12/2026 3130B1BT3
FEDERAL HOME LOAN BANK 4.875%
12JUN2026 BOND INTEREST 6/12/2026 6/12/2026 1,150,000.00 0.000% 6/12/2026 - - 28,031.25 28,031.25 6/15/2026 91282CJG7 USA TREASURY 4.875% 31OCT2030 PURCHASE 6/12/2026 6/15/2026 650,000.00 4.875% 10/31/2030 102.74 667,801.01 3,960.94 671,761.95 6/15/2026 91282CMW8 USA TREASURY 3.75% 15APR2028 PURCHASE 6/12/2026 6/15/2026 600,000.00 3.750% 4/15/2028 99.43 596,580.14 3,750.00 600,330.14 6/15/2026 91282CKN0 USA TREASURY 4.625% 30APR2031 PURCHASE 6/12/2026 6/15/2026 650,000.00 4.625% 4/30/2031 101.85 662,037.33 3,757.81 665,795.14 6/12/2026 3130B1BT3
FEDERAL HOME LOAN BANK 4.875%
12JUN2026 REDEMPTION 6/12/2026 6/12/2026 1,150,000.00 0.000% 6/12/2026 100.00 1,150,000.00 - 1,150,000.00 6/15/2026 3130ATUT2
FEDERAL HOME LOAN BANK 4.5%
14DEC2029 BOND INTEREST 6/14/2026 6/14/2026 505,000.00 4.500% 12/14/2029 - - 11,362.50 11,362.50 6/15/2026 46625HRS1
JPMORGAN CHASE & CO 3.2%
15JUN2026 CALLABLE BOND INTEREST 6/15/2026 6/15/2026 500,000.00 0.000% 6/15/2026 - - 8,000.00 8,000.00 6/15/2026 91282CMB4 USA TREASURY 4% 15DEC2027 BOND INTEREST 6/15/2026 6/15/2026 1,050,000.00 4.000% 12/15/2027 - - 21,000.00 21,000.00 6/15/2026 46625HRS1
JPMORGAN CHASE & CO 3.2%
15JUN2026 CALLABLE REDEMPTION 6/15/2026 6/15/2026 500,000.00 0.000% 6/15/2026 100.00 500,000.00 - 500,000.00 6/18/2026 3134HAW33
FREDDIE MAC 4.75% 18DEC2029
(CALLABLE 18SEP26) BOND INTEREST 6/18/2026 6/18/2026 1,000,000.00 4.750% 12/18/2029 - - 23,750.00 23,750.00 6/22/2026 3130AQF65
FEDERAL HOME LOAN BANK 1.25%
21DEC2026 BOND INTEREST 6/21/2026 6/21/2026 1,300,000.00 1.250% 12/21/2026 - - 8,125.00 8,125.00 6/30/2026 91282CJR3 USA TREASURY 3.75% 31DEC2028 BOND INTEREST 6/30/2026 6/30/2026 1,200,000.00 3.750% 12/31/2028 - - 22,500.00 22,500.00 6/30/2026 91282CCH2 USA TREASURY 1.25% 30JUN2028 BOND INTEREST 6/30/2026 6/30/2026 900,000.00 1.250% 6/30/2028 - - 5,625.00 5,625.00 6/30/2026 91282CEW7 USA TREASURY 3.25% 30JUN2027 BOND INTEREST 6/30/2026 6/30/2026 1,000,000.00 3.250% 6/30/2027 - - 16,250.00 16,250.00 Town of Los Gatos
Investment Transaction Detail
June 30, 2026
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
02665WED9 AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 600,000 614,006 BBB+ A3 3 2 4 3 037833DB3 APPLE INC 2.9% 12SEP2027 (CALLABLE 12JUN27) 9/12/2027 1,300,000 1,292,918 AA+ Aaa 5 2 5 5 06051GMY2 BANK OF AMERICA CORP 4.477% 23APR2030 (CALLABLE 23APR29) 4/23/2030 1,250,000 1,252,532 A- A1 3 1 3 5 17275RBR2 CISCO SYSTEMS INC 4.85% 26FEB2029 (CALLABLE 26JAN29) 2/26/2029 1,000,000 1,027,324 AA- A1 2 1 3 3 17325FBK3 CITIBANK NA 4.838% 06AUG2029 (CALLABLE 06JUL29) 8/6/2029 1,250,000 1,284,159 A+ Aa3 3 1 2 4 194162AR4 COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28) 3/1/2028 500,000 510,635 A+ Aa3 3 3 3 2 24422EXN4 JOHN DEERE CAPITAL CORP 4.9% 07MAR2031 3/7/2031 1,000,000 1,028,377 A A1 3 1 3 4 437076CW0 HOME DEPOT INC 4.9% 15APR2029 (CALLABLE 15MAR29) 4/15/2029 1,000,000 1,023,412 A A2 3 3 3 3 46647PDG8 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL27) 7/25/2028 1,400,000 1,433,307 A A1 3 1 3 5 61776NU43 MORGAN STANLEY PVT BANK 4.213% 08FEB2030 (CALLABLE 08FEB29) 2/8/2030 1,250,000 1,255,322 A+ Aa3 3 1 3 4 69353RFJ2 PNC BANK NA 3.25% 22JAN2028 (CALLABLE 23DEC27) 1/22/2028 1,000,000 997,031 A A2 3 3 4 3 857477CD3 STATE STREET CORP 5.272% 03AUG2026 (CALLABLE 05JUL26) 8/3/2026 800,000 817,305 A Aa3 1 1 2 2 857477DB6 STATE STREET CORP 4.834% 24APR2030 (CALLABLE 24MAR30) 4/24/2030 580,000 590,944 A Aa3 1 1 2 2 89236TKL8 TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 1,600,000 1,635,982 A+ A1 3 1 3 4 91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 7/22/2028 1,000,000 1,020,108 A A3 3 2 3 4 Total Corporate / weighted average 15,530,000 15,783,362 3 2 3 4 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 June 30, 2026
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 1,300,000 - - - - - 1,300,000
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 1,201,824 - - - - - 1,201,824
Council Priorities - Economic Recovery - - - - - - -
Unassigned Fund Balances:
111 Other Unassigned Fund Balance Reserve (Pre YE distribution) 10,211,049 2,389,639 8,660,615 (5,557,067) - - 15,704,236 General Fund Total 35,763,316 2,389,639 8,660,615 (5,557,067) - - 41,256,503 * Interfund transfers to be performed as part of the fiscal year end closing entries.
June 2026
Prior Year
Carryforward
7/1/2025*
Increase/
(Decrease)
July-May
Estimated Fund
Balance
6/30/2026*
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 (13,705) 27,282 (9,729) - - 668,016 231-236 Landscape & Lighting Districts 193,606 (5,723) 18,215 (5,020) - - 201,078 251 Los Gatos Theatre 381,120 183,211 15,125 (11,451) - - 568,005 261-264,269 Library Trusts 559,745 39,458 - (4,266) - - 594,937 Special Revenue Total 1,965,292 203,241 60,622 (30,466) - - 2,198,689
CAPITAL PROJECTS
411 GFAR - General Fund Appropriated Reserve 16,974,946 723,036 157,461 (1,350,268) - - 16,505,175 412 Community Center Development 819,604 - - - - - 819,604 421 Grant Funded Projects (1,577,430) 1,693,383 - (40,194) - - 75,759 461-463 Storm Basin Projects 2,825,234 165,976 27,732 (34,525) - - 2,984,417 471 Traffic Mitigation Projects 676,482 - - - - - 676,482 472 Utility Undergrounding Projects 3,763,913 26,890 - - - - 3,790,803 481 Gas Tax Projects 2,130,548 511,733 320,904 - - - 2,963,185 Capital Projects Total 25,613,297 3,121,018 506,097 (1,424,987) - - 27,815,425
INTERNAL SERVICE FUNDS
611 Town General Liability 208,746 (402,210) - (33,874) - - (227,338) 612 Workers Compensation 1,259,972 82,910 69,053 (52,172) - - 1,359,763 621 Information Technology 2,585,103 (273,300) 172,297 (104,585) - - 2,379,515 631 Vehicle & Equipment Replacement 3,890,428 713,287 291,886 - - - 4,895,601 633 Facility Maintenance 820,099 (113,954) 300,292 (145,088) - - 861,349 Internal Service Funds Total 8,764,348 6,733 833,528 (335,719) - - 9,268,890 Trust/Agency
942 RDA Successor Agency (3,037,146) (1,736,640) 1,793,487 (3,670) - - (2,983,969) Trust/Agency Fund Total (3,037,146) (1,736,640) 1,793,487 (3,670) - - (2,983,969) Total Town 69,069,107 3,983,991 11,854,349 (7,351,909) - - 77,555,538 * Interfund transfers to be performed as part of the fiscal year end closing entries.
Deposit Accounts of Interest:
111-23541 General Plan Update deposit account balance $683,663.78 111-23521 BMP Housing deposit account balance $3,723,190.79 Prior Year
Carryforward
7/1/2025*
Increase/
(Decrease)
July-May
June 2026
Estimated Fund
Balance
6/30/2026*
9
ITEM NO. 3.
PREPARED BY: Nick Turner
Acting Fleet & Facilities Operations Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Administrative Services 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: 09/15/2026
ITEM NO: 4
DATE: September 15, 2026
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 for Janitorial Services with Frank and Grossman Landscape Contractors, Inc. Increasing Fiscal 2026-27 Compensation by $5,860.35 to Reflect a 3% Consumer Price Index (CPI) Increase and to Add CPI Increases to Future Years
RECOMMENDATION: Authorize the Town Manager to Execute a Second Amendment to the Agreement for Services with Frank and Grossman Landscape Contractors, Inc. to increase the Fiscal Year 2026-27 Compensation by $5,860.35 to reflect a 3% CPI increase and to add CPI increases to future years.
FISCAL IMPACT:
The Second Amendment would increase Fiscal Year 2026-27 compensation by $5,860.35, from $205,536 to $211,396.35, to reflect the 3% CPI adjustment provided for in the Agreement.
Sufficient funds for the increase are available in the Adopted FY 2026-27 Parks and Public Works Facilities Maintenance Program (Account Code 6335423-63351).
The adjusted $211,396.35 base would also apply to Fiscal Years 2027-28 and 2028-29, before any additional CPI adjustments applicable to those fiscal years. Future fiscal year funding is subject to Town Council approval of the operating budget appropriations made during the Town’s annual budget process.
STRATEGIC PRIORITY:
Not Applicable. This item does not directly implement an adopted 2025-2027 Strategic Priority.
ITEM NO. 4.
PAGE 2 OF 3
SUBJECT: Second Amendment to Agreement for Services with Frank and Grossman Landscape Contractors, Inc.
DATE: September 15, 2026
This action supports the Town’s Core Goal of Quality Public Infrastructure by providing clean and well-maintained public facilities.
BACKGROUND:
A Request for Proposal (RFP) was conducted on April 19, 2024, for contracted janitorial services at the Town’s municipal facilities and park restrooms. Services under this agreement include routine cleaning and janitorial maintenance necessary to maintain Town facilities in a clean, safe, and sanitary condition. Frank and Grossman Landscape Contractors, Inc. presented the lowest responsible proposal, and on August 6, 2024, the Town Council authorized execution of an agreement for services.
To support the budget balancing efforts in Fiscal Year 2025-26, janitorial services for Town facilities were reduced to achieve cost savings. The recommended reduction decreased the contract amount for Fiscal Year 2025-26 from $266,920 to $205,536 and the total five-year contract amount from $1,270,370 to $1,024,834, representing $245,536 (19%) savings compared to the original contract. This change was documented in Amendment 1 to the agreement.
The agreement provides for periodic adjustments to the contract amount based on changes in the Consumer Price Index (CPI), subject to the Town's approval. In accordance with this provision, Frank and Grossman Landscape Contractors, Inc. has requested a 3% CPI increase to the current compensation for janitorial services.
DISCUSSION:
The requested 3% increase is intended to address increased operating costs over the next year.
The contractor has indicated that, after evaluating its expenses over the past year, including fuel, labor, and material costs, the proposed increase is necessary to maintain the current level and quality of services provided to the Town.
Staff has reviewed the request and found the proposed 3% adjustment reasonable and consistent with the CPI adjustment provisions of the existing agreement. Approval of the increase will allow Frank and Grossman Landscape Contractors, Inc. to continue providing reliable janitorial services while accounting for increased costs associated with performing the contract.
Staff has also reviewed the agreement with Frank and Grossman Landscape Contractors, Inc. and would recommend that Council authorize the Town Manager to increase said agreement by CPI each remaining year of the agreement pending, operating budget appropriations made during the Town’s annual budget process. This authority will allow CPI adjustments to be applied annually without returning to Council for future amendments, consistent with the revised contract structure.
ITEM NO. 4.
PAGE 3 OF 3
SUBJECT: Second Amendment to Agreement for Services with Frank and Grossman Landscape Contractors, Inc.
DATE: September 15, 2026
CONCLUSION:
Staff recommend the Town Council approve the 3% CPI increase for janitorial services provided by Frank and Grossman Landscape Contractors, Inc. The adjustment is consistent with the provisions of the existing agreement and will support the continued provision of necessary janitorial services at Town facilities. Staff also recommend that CPI increases be added to future years of the agreement based upon operating budget appropriations made during the Town’s annual budget process.
COORDINATION:
This report was prepared in coordination with the Finance Department.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Second Amendment
2. Original Agreement and First Amendment
ITEM NO. 4.
AMENDMENT TO AGREEMENT
Amendment to Agreement
Frank and Grossman Landscape Contractors, Inc.
This SECOND AMENDMENT TO AGREEMENT amends that certain agreement titled Agreement for Services dated August 6, 2024, made by and between the Town of Los Gatos, ("Town,") and Frank and Grossman Landscape Contractors, Inc. (“Service Provider”), a Corporation and whose address is 3248 Arden Road, Hayward, CA 94545.
RECITALS
A. Town and Service Provider entered into an Agreement for Services on August 6, 2024, (“Agreement”).
B. First Amendment to Agreement for Services on August 19, 2025.
C. The Parties desire to amend the Agreement in order to increase compensation.
AMENDMENT
A. Section 2.6 Compensation is replaced and amended to read as follows:
Compensation for Year 1 shall not exceed $202,690.00. Compensation for Year 2 shall not exceed $205,536.00.
Compensation for Year 3 shall not exceed $211,396.35. Compensation for Year 4 and Year 5 will be the base cost of $201,205.35 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in 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.
Year 1 = 10/01/24 - 06/30/25 = $192,690.00 + 10,000.00 Unforeseen = $202,690.00 Year 2 = 07/01/25 - 06/30/26 = $195,345.00 + $10,191.00 Unforeseen = $205,536.00 Year 3 = 07/01/26 - 06/30/27 = $201,205.35 + $10,191.00 Unforeseen = $211,396.35 Year 4 = 07/01/27 - 06/30/28 = $201,205.35 + $10,191.00 Unforeseen + CPI Increase Year 5 = 07/01/28 - 06/30/29 = $201,205.35 + $10,191.00 Unforeseen + CPI Increase B. All other terms and conditions of the Agreement remain in full force and effect.
Attachment 1. Page 43
ITEM NO. 4.
Amendment to Agreement Page 2 of 2
Frank and Grossman Landscape Contractors, Inc.
TOWN OF LOS GATOS FRANK AND GROSSMAN LANDSCAPE CONTRACTORS INC. **signature_190756**
SIGNATURE
Chris Constantin
FULL NAME
Town Manager
TITLE
**date_signed_190756**
DATE SIGNED
**signature_190757**
SIGNATURE
Gary Cooper
CONTRACTOR SIGNATORY'S FULL NAME
Chief Executive Officer
CONTRACTOR SIGNATORY'S TITLE
**date_signed_190757**
DATE SIGNED
Approved as to form:
**signature_190754**
SIGNATURE
Gabrielle Whelan
FULL NAME
Town Attorney
TITLE
**date_signed_190754**
DATE SIGNED
The execution date is the date on which the last party has signed.
ITEM NO. 4.
AMENDMENT TO AGREEMENT
PREAMBLE
This First Amendment to Agreement for Services is dated for identification on this 19th day of August 2025, and amends that certain Agreement for Services dated October 1, 2024, made by and between the Town of Los Gatos, ("Town,") and the Frank and Grossman Landscape Contractors Inc. (“Service Provider”) identified as an S Corporation and whose address is 3248 Arden Road Hayward, CA 94545.
RECITALS
A. Town and Consultant entered into an Agreement for Services on October 1, 2024 (“Agreement”), incorporated by reference.
B. Town desires to amend the Agreement to reduce the compensation of the agreement by decreasing the service schedule and materials used for the contract.
AMENDMENT
A. Exhibit A, Scope of Services, is replaced with Exhibit A to this Amendment.
B. Section 2.6 Compensation is amended to read as follows::
Year 1 = 10/1/24 – 6/30/25 = $192,690 + $10,000 unforeseen = $202,690 Year 2 = 7/1/25 – 6/30/26 = $195,345 + $10,191 unforeseen = $205,536 Year 3 = 7/1/26 –6/30/27 = $195,345 + $10,191 unforeseen = $205,536 Year 4 = 7/1/27 – 6/30/28 =$195,345 + $10,191 unforeseen = $205,536 Year 5 = 7/1/28 – 6/30/29 =$195,345 + $10,191 unforeseen = $205,536 Compensation for services in the amount not to exceed $1,024,834, inclusive of all costs.
Compensation for Years 2 through 5 will be the base cost of $195,345 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in 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.
C. All other terms and conditions of the Agreement remain in full force and effect.
Amendment to Agreement - Frank and
Grossman Landscape Contractors Inc.
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8 Attachment 2.
ITEM NO. 4.
IN WITNESS WHEREOF, the Town and Service Provider have executed this Amendment.
Town of Los Gatos by: Frank and Grossman Landscape Contractors Inc. by:
Chris Constantin, Town Manager Rick Oropeza, Vice President of Commercial Operations
Recommended by:
Nicolle Burnham,
Director of Parks and Public Works
(Tyler Thomas signing on behalf of Nicolle Burnham)
Approved as to Form:
Gabrielle Whelan, Town Attorney
Attest:
Wendy Wood, CMC, Town Clerk
Amendment to Agreement - Frank and Grossman
Landscape Contractors Inc.
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8 Susana Hernandez, Janitorial Maintenance Division Manager 8/25/2025
8/25/2025
8/26/2025
8/29/2025
8/29/2025
ITEM NO. 4.
REVISED 7/1/2025 - PER ATTACHED SCHEDULE FOR JULY 1, 2025 THROUGH JUNE 30, 2029
COST PROPOSAL FORMAT
For all services described below, unless excluded by the Town in description of services, the Town shall consider unit prices to include all labor, equipment, fees of any kind, overhead, insurance, fuel, materials, surcharges, disposal fees, and any other costs associated with and necessary for the Bidder to perform such service. No qualifications, exemptions, or alterations of services described below will be allowed. Failure to comply will result in disqualification of bid.
A. BASIC SERVICES
BID
ITEM LOCATION DESCRIPTION
UNIT
PRICE
TIMES
PER
YEAR
ANNUAL
COST
1 Civic Center
Janitorial (except
windows) $2,500 12 $30,000
2 Parks & Public Works
(PPW) Service Center
Janitorial (except
windows) $2,500 12 $30,000
3 Police Operations Bldg.
Janitorial (except
windows) $1,760 12 $21,120
4 Library
Janitorial (except
windows) $5,865 12 $70,380
Civic Center Windows $615 4 1 $615
PPW Service Center Windows $615 4 1 $615
Police Operations Bldg. Windows $615 4 1 $615
5 Library Windows $3,000 4 1 $3,000
6 Park Restrooms Janitorial $3,250 12 $39,000
TOTAL $195,345
B. ADDITIONAL JANITORIAL SERVICES AS NEEDED
TIME AND MATERIALS BASIS
BID
ITEM DESCRIPTION PER HOUR COST
7 Service during the daytime hours of 7:00 a.m. to 7:00 p.m. weekdays with 24 hours or greater notice $56.65
8 Service during the evening hours of 7:00 p.m. to 7:00 a.m. or on weekends or holidays with 24 hours or greater notice $59.25 9 Service during the daytime hours of 7:00 a.m. to 7:00 p.m. weekdays with less than 24 hours notice $70.25
10 Service during the evening hours of 7:00 p.m. to 7:00 a.m. or on weekends or holidays with less than 24 hours notice $81.25 11 Day Porter 2:00 pm - 4:00 pm (Library only) $45.00
Note: 2 hour minimum will be paid for any service requiring less than 2 hours’ work
EXHIBIT A
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Monday Tuesday Wednesda Thursday Friday Saturday Sunday Town of Los Gatos
Civic Center Dispatch, Museum Restroooms X X X
CORP YARD X X
Police Operations X X X
Library X X X X X X X
Library Porter- Not Included
Library
PARKS
Park X X X X X X X
Park X X X X X X X
Park X X X X X X X
Park X X X X X X X
Park X X X X X X X
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Agreement for Services
Frank and Grossman Landscape Contractors Inc.
AGREEMENT FOR SERVICES
PREAMBLE
THIS AGREEMENT is dated for identification on this 6th day of August 2024 by and between TOWN and Frank and Grossman Landscape
Contractors Inc., identified as an S corporation and whose address is 3248 Arden Road, Hayward, CA 94545. This Agreement is made with reference to the following facts.
I. RECITALS
1.1 Town sought quotations 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 janitorial 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 14, 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 October 1, 2024, through June 30, 2029 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.
ATTACHMENT 1
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Agreement for Services
Frank and Grossman Landscape Contractors Inc.
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 all 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: Compensation for year one (FY2024/25) shall not exceed $202,690. Compensation for future years will be the base cost of $266,920 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in 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.
Year 1 = 10/1/24 6/30/25 = $192,690 + $10,000 unforeseen = $202,690 Year 2 = 7/1/25 6/30/26 = $256,920 + $10,000 unforeseen = $266,920 Year 3 = 7/1/26 6/30/27 = $256,920 + $10,000 unforeseen = $266,920 Year 4 = 7/1/27 6/30/28 = $256,920 + $10,000 unforeseen = $266,920 Year 5 = 7/1/28 6/30/29 = $256,920 + $10,000 unforeseen = $266,920 Compensation for services in the amount not to exceed $1,270,370, inclusive of all costs. *Total compensation does not include CPI adjustments for Years 2-5.
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:
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Agreement for Services
Frank and Grossman Landscape Contractors Inc.
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.
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.
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Agreement for Services
Frank and Grossman Landscape Contractors Inc.
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 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.
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Agreement for Services
Frank and Grossman Landscape Contractors Inc.
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 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 . 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 with limit of no less than one million dollars ($1,000,000) per accident for bodily injury or disease.
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) Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Agreement for Services
Frank and Grossman Landscape Contractors Inc.
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 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. 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, Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Agreement for Services
Frank and Grossman Landscape Contractors Inc.
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)].
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 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
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:
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Agreement for Services
Frank and Grossman Landscape Contractors Inc.
Town of Los Gatos
Attn: Town Clerk
110 E. Main Street
Los Gatos, CA 95030
Frank and Grossman
Landscape Contractors Inc.,
3248 Arden Road,
Hayward, CA 94545
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, 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.
Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
Agreement for Services
Frank and Grossman Landscape Contractors Inc.
IN WITNESS WHEREOF, the Town and Service Provider have executed this Agreement.
Town of Los Gatos by:
Laurel Prevetti, Town Manager
Recommended by:
Nicolle Burnham
Director of Parks and Public Works
Frank and Grossman Landscape Contractors
Inc. by:
Rick Oropeza, Vice President of Commercial
Operations
Approved as to Form: _____________________________________ Gabrielle Whelan, Town Attorney Attest: ______________________________________ Wendy Wood, CMC, Town Clerk Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
1 REQUEST FOR PROPOSALS:
CONTRACT JANITORIAL SERVICES
May, 14 2024
Prepared for:
Wendy Wood
Town Clerk
Location:
3248 Arden Road
Hayward, CA 94545
Contact:
(415) 470-3196
[email protected]
Proposed By:
Jackie Hodgdon
Business Development Manager
Contact:
(408) 354-6888
[email protected]
Location:
41 Miles Avenue
Los Gatos, CA 95030
EXHIBIT A
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
4 COVER LETTER
Town of Los Gatos
41 Miles Avenue
Los Gatos, CA 95030
05/14/2024
Dear Town of Los Gatos,
We are writing to express our interest in the Janitorial Services for the Town of Los Gatos.
Frank and Grossman Landscape Contractors, Inc. is a well-established landscape and janitorial contractor with over 40 years of experience in the Bay Area.
As a responsible S-Corp and ESOP firm, we take pride in our commitment to our employees and our fiduciary responsibility. We have reviewed the bid documents and visited the sites to familiarize ourselves with the access, level of use and have begun outlining our plan of action.
Our extensive experience allow us to efficiently and effectively provide the specific work tasks outlined in the Request For Proposal.
We guarantee that no subcontractors will be used, and we hold ourselves to the highest standards of ethical conduct. We certify that no payments will be made to any employee or official of the Town of Los Gatos in exchange for any services, and we have no conflicts of interest.
We have no current or past litigation against us.
Our offer is firm and irrevocable for 60 days from the proposal due date, and we can meet all insurance requirements. We are ready to begin work as soon as we are appointed, and we will perform the work as outlined in the RFP as well as in the addendum #1.
Your contact that is authorized to make decisions for this bid is Jackie Hodgdon. She may be reached at 415-470-3196 or [email protected]. We look forward to the opportunity to provide exceptional custodial services to the Town of Los Gatos.
Sincerely,
Rick Oropeza
Vice President of Commercial Operations
Frank and Grossman Landscape Contractors, Inc.
(415) 828-3946, [email protected]
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
5 QUALIFICATIONS OF THE FIRM
F+G’s history of 40 years of experience in the service industry, and 10 years with a janitorial department have exposed us to a wide variety of clients, locations and demands (including COVID disinfecting protocols). Our keystone client, Caltrain, of 10 years, with 31 stations, has specifically exposed us to every kind of pedestrian trash and defecation. We also provide regular power washing duties for them as well as other clients. Our experienced team is ready to handle any and all of your janitorial needs.
F+G Motto:
“Investing in people, devoted to our craft,
exceeding expectations”
—————————————————————————————
Before After
GRAFFITI REMOVAL SAMPLE
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
6 PREVAILING WAGE
Frank and Grossman has experience with prevailing wages. We will comply with all local and federal labor laws. We are currently registered with the DIR for both landscape and janitorial services.
Renewed and active through 2025
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
13 REFERENCES
You are only as good as your current work. We have included a list of long term partners as well as new clients for you to interview and hear from them first hand.
These are examples of our work where we interface with public and private citizens in urban corridors.
City of Gilroy 5+ years
Scope of Work: Janitorial Services
throughout City facilities
Contract Size: $298K+ Annually
“F+G is always there for us”
Walter Dunckel
Facilities Superintendent
(408) 846-0282
[email protected]
7351 Rosanna Street, Gilroy
CPMC– Sutter Health 13+ Years
Scope of Work: Day Porter, Janitorial and
Landscape Services at hospitals
Contract Size: $480K+ Annually
“Committed to resolving client’s
concerns”
Rigo Hurtado
CPMC Manager
(415) 600-2220
[email protected]
2351 Clay Street, San Francisco
City of East Palo Alto 1+ Year
Scope of Work: Janitorial Services at City
buildings
Contract Size: $110K+ Annually
“Received several positive comments
regarding staff’s detail work”
Jay Farr
Public Works Manager
(650) 853-3105
[email protected]
150 Tara Road, East Palo Alto
Caltrain – TASI 10+ years
Scope of Work: Janitorial, Day Porters
Landscape and Pressure Washing
Contract Size: $2.2M+ Annually
“F&G has proven to be dependable,
reliable, responsive and thorough”
Henry Arellanes
Facilities Maintenance Supervisor
(650) 862-0379
[email protected]
4000 Campbell Avenue, Menlo Park
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
14 EQUIPMENT AND SUPPLIES
EQUIPMENT CHEMICALS & SUPPLIES
Scissor Lift for Windows at Library
Trash can and dolly set up with
commercial cleaners, broom, rags,
gloves.
We use commercial grade, ready to
use, labeled cleaning chemicals.
MSDS sheets to be provided in job
binder. All chemicals used on site will
be eco-friendly and comply with UL
ECOLOGO standards.
Any paper goods used will comply
with post consumer content by Cal
Recycle.
SUN MON TUES WED THUR FRI SAT
Civic Center X X X X X X
Parks & Public Works X X X X X X
Police Operations X X X X X X
Library X X X X X X
Library—Porter (2:00pm-4:00pm) X X X X X X X
Park Restrooms (9:00pm-11:00pm) X X X X X X X
SCHEDULE
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
15 WORK PLAN AND
PROJECT UNDERSTANDING
Our commitment to hiring, training, management, and customer support is a critical aspect of our business plan. We believe that our approach to these areas sets us apart from our competitors and makes us an ideal choice to provide high-quality custodial services to the Town of Los Gatos.
HIRING TRAINING
QUALITY ASSURANCE PROGRAM CUSTOMER SUPPORT
We source potential candidates using
local hiring practices and long time
relationships.
We conduct driving record checks
through DMV-MVR and criminal
background checks through Sterling
Check.
• Onsite training- prior to contract
kickoff
• Cross training- staff is prepared
to take over in case of
absenteeism.
• Continuing educationdedicated to our staff’s growth – opportunities for certification.
• Pre Cleaning Inspections
• Create Cleaning Schedule
• Assign Tasks to Crew
• Quality Control Checks
• Enforce Safety Measures
• Respond to all Inquiries within 2
hours
• Track Service Requests
• Provide Monthly Reports– see
sample
• Provide Itemized Billing
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
16 START UP PLAN
A sequence of phases that will go into action for the Town of Los Gatos.
TIMELINE
MILESTONES
As we enter a long-term agreement with the Town of Los Gatos, we understand that we are making a commitment to perform our work safely and completely.
Phase I—Operations Manager – confirm schedule meets contract requirements Phase II—Human Resource Team - coordinate training of employees Phase III– Fleet Manager – purchase equipment
Phase IV—F+G and Town of Los Gatos identify hot spots, confirm staging areas.
Phase V—Quality Control Officer - Schedule and host quality control checks at regular intervals.
PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5
Confirm Train
Schedule
Purchase Walkthroughs
Equipment
Quality Control
Checks
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
17 QUALITY ASSURANCE PROGRAM
Contractor’s Quality Control Inspector
The Quality Control Inspector will schedule visits to ensure that we are following specific work tasks, safety policies and Town of Los Gatos procedures. Any items found out of compliance will be compiled into an Action Plan and provided to the Town of Los Gatos with steps to improve service level. F+G and Town of Los Gatos will meet or exceed timeline below for bringing these tasks to standard. Assigned to this role person will be the Vice President of Commercial Operations, Rick Oropeza.
MILESTONES
Step 1—Quality Inspection and Town of Los Gatos Representative– walk sites, make notes assess, grade scopes of work, discuss acceptable remediation Step 2—F+G create Action Plan for Town of Los Gatos Representative to agree. Action Plan produced within 3 days of Inspection
Step 3– Operation Manager– 3 days within receiving Action Plan it will be completed.
Inspections scheduled for 30/60/90 after start of contract and then quarterly Anticipated dates to begin work is July 1st, 2024.
STEP 1 STEP 2 STEP 3
Walk Sites Create Action
Plan
Execute Action
Plan
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
18 SAFETY
• Our Injury and Illness Prevention Program (IIPP) aims to minimize accidental loss to employees, subcontractors, public, and property while complying with California regulations.
• The IIPP sets policies and procedures for all construction and maintenance operations at Frank and Grossman (F&G).
• F&G administers activities to achieve and maintain a safe and healthful work environment for employees and the public.
• Employees must follow safe work guidelines, participate in safety and health training, wear personal protective equipment, and follow safety and health rules established by F&G.
• Failure to comply may result in disciplinary action, up to and including termination of employment.
• On-site, our crew wears complete PPE including uniforms with names, safety vests, safety glasses, gloves, hard hats, ear plugs, and protective footwear. • We follow all other handling requirements as per MSDS guidelines.
Specific to this contract: Comply with all Safety Requirements, for example: No personal devices on track lines.
SAFETY POLICY
To protect the safety and health of Frank and Grossman and it as employees’ management shall:
1. Place employee safety and health as the primary consideration in establishing work practices and procedures and in the selection of equipment.
2. Give safety precedence over expediency and short cuts.
3. Make every effort to control the possibility of accident occurrence.
4. Fully comply with, and enforce, safety standards, regulations and F&G Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
19 ADMINISTRATIVE DOCUMENTS
Thank you for the opportunity—we look forward to working together.
Required Submittals from RFP
• Attachment B
• Attachment D
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
20 Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
21 Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
22 Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
23 $2,739.04 $29,160
$35,640
$48,600
$98,340
$2,380
$2,380
$2,380
$11,580
$26,460
$2,430
$2,970
$4,050
$8,195
$595
$595
$595
$2,895
$2,205
$256,920
$55.00
$57.50
$68.25
$78.75
$40.00
Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
24 Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
25 Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
26 Docusign Envelope ID: B8A26D12-2D65-4E89-A7E1-0F4F3BDAA179 Docusign Envelope ID: DA2FBC95-AAD5-4585-9844-D71FCBDB9DF8
ITEM NO. 4.
PREPARED BY: Tyler Thomas
Superintendent
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Administrative Services 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: 09/15/2026
ITEM NO: 5
DATE: September 15, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Approve a First Amendment to the Agreement for Heating Ventilation and Air Conditioning Maintenance and Repair Services with Air Systems Inc. to Increase Fiscal Year 2025-26 Compensation by $4,122 for a Total Year Two Compensation of $108,442.
RECOMMENDATION: Approve a First Amendment to the Agreement for Services with Air Systems Inc. to retroactively increase Fiscal Year 2025-26 compensation by $4,122 for services already performed, increase the total year two compensation to $108,442, authorize payment of properly documented invoices within the amended contract amount, and authorize the Town Manager to execute the
amendment.
FISCAL IMPACT:
The $4,122 increase represents a liability for services performed during Fiscal Year 2025-26. The expenditure was accrued to Fiscal Year 2025-26 and will be charged to the Parks and Public Works Facilities Maintenance Program (6335423-63353). Sufficient Fiscal Year 2025-26 appropriation is available, and no additional appropriation or budget adjustment is required.
Future fiscal year funding is subject to Town Council approval of the operating budget appropriations made during the Town’s annual budget process.
STRATEGIC PRIORITY:
Not Applicable. This item does not directly implement an adopted 2025-2027 Strategic Priority.
This action supports the Town’s Core Goal of Quality Public Infrastructure by ensuring town facilities and properties are maintained for public use and services.
ITEM NO. 5.
PAGE 2 OF 3
SUBJECT: First Amendment to Agreement for Services with Air Systems, Inc.
DATE: September 15, 2026
BACKGROUND:
The Town entered into an Agreement for Services with Air Systems, Inc. on July 1, 2024, for Heating Ventilation and Air Conditioning (HVAC) Preventative Maintenance and Repair Services.
This agreement was entered into after a Request for Proposal (RFP) was advertised by Parks and Public Works. Two proposals were received on May 14, 2024, and Air Systems, Inc. was the lowest responsible bidder for the work. The proposed amendment will be the first amendment to Air Systems, Inc.’s contract. This work is performed at six main Town facilities and includes emergency and after-hours response and repairs.
DISCUSSION:
During Fiscal Year 2025-26, the demand for HVAC services exceeded initial staff projections. The Town experienced an increase in emergency response requests related to HVAC equipment that required repair.
By the end of Fiscal Year 2025-26, the value of services performed exceeded the authorized Fiscal Year 2025-26 agreement amount; however, the full amount of the overage was not known until the final invoices for completed work were received. The requested contract increase of $4,122 reflects work that was necessary to maintain this equipment and respond to operational demands that exceeded original budget assumptions.
The budget overage was unknown during Fiscal Year 2025-26 because invoices for completed work were not received from the contractor until several months after the services were performed. As a result, the full Fiscal Year 2025-26 contract expenditures were not reflected in the financial information available to staff prior to year-end.
Staff have communicated the need for timely invoicing and will closely reconcile invoiced expenditures, work in progress, and remaining contract authority to prevent future work from exceeding authorized compensation.
CONCLUSION:
Approval of the requested increase will provide sufficient contract authority to pay for services performed by Air Systems, Inc., during Fiscal Year 2025-26 and ensure the agreement accurately reflects the actual cost of maintaining the Town’s heating and cooling systems.
Staff recommend that the Town Council approve an increase of $4,122 to the Air Systems, Inc.
Heating Ventilation and Air Conditioning (HVAC) Preventative Maintenance and Repair Services Agreement, increasing the Year 2 Compensation to $108,442.
COORDINATION:
This report was prepared in coordination with the Finance Department.
ITEM NO. 5.
PAGE 3 OF 3
SUBJECT: First Amendment to Agreement for Services with Air Systems, Inc.
DATE: September 15, 2026
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. First Amendment to Agreement for Services
2. Original Agreement for Services
ITEM NO. 5.
AMENDMENT TO AGREEMENT
Amendment to Agreement
Air Systems
This FIRST AMENDMENT TO AGREEMENT amends that certain agreement titled Agreement for Services dated June 4, 2024, made by and between the Town of Los Gatos, ("Town,") and Air Systems, Inc. (“Service Provider”), a Corporation and whose address is 940 Remillard Court, San Jose, CA 95122.
RECITALS
A. Town and Service Provider entered into an Agreement for Services on June 4, 2024 (“Agreement”).
B. The parties wish to amend the Agreement in order to increase the compensation.
AMENDMENT
A. Section 2.6 Compensation is replaced and amended to read: Compensation for Year 1 (FY 2024/25) shall not exceed $104,320.00. Compensation for Year 2 shall not exceed $108,442.00. Compensation for future years will be the base cost of $104,320.00 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in 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.
Year 1 - FY 2024/25 = $64,320.00 + $40,000.00 (Unforeseen Repairs) = $104,320.00 Year 2 - FY 2025/26 = $64,320.00 + $44,122.00 (Unforeseen Repairs) = $108,442.00 Year 3 - FY 2026/27 = $64,320.00 + $40,000.00 (Unforeseen Repairs) + CPI Increase Year 4 - FY 2027/28 = $64,320.00 + $40,000.00 (Unforeseen Repairs) + CPI Increase Year 5 - FY 2028/29 = $64,320.00 + $40,000.00 (Unforeseen Repairs) + CPI Increase B. All other terms and conditions of the Agreement remain in full force and effect.
Attachment 1.
ITEM NO. 5.
Amendment to Agreement Page 2 of 2
Air Systems
TOWN OF LOS GATOS CONTRACTOR: Air Systems Inc.
**signature_185552**
SIGNATURE
Chris Constantin
FULL NAME
Town Manager
TITLE
**date_signed_185552**
DATE SIGNED
**signature_185553**
SIGNATURE
Marty Cull
CONTRACTOR SIGNATORY'S FULL NAME
Executive Vice President, and Chief Financial Officer
CONTRACTOR SIGNATORY'S TITLE
**date_signed_185553**
DATE SIGNED
Approved as to form:
**signature_185551**
SIGNATURE
Gabrielle Whelan
FULL NAME
Town Attorney
TITLE
**date_signed_185551**
DATE SIGNED
The execution date is the date on which the last party has signed.
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277
AGREEMENT FOR SERVICES
PREAMBLE
THIS AGREEMENT is dated for identification on this 4th ofJune 2024 by and between TOWN OF LOS GATOS, a California municipal corporation, (" Town") and Air Systems Inc. (" Service Provider"), identified as a C Corporation and whose address is 940 Remillard Court, San Jose, CA 95122. This Agreement is made with reference to the following facts.
RECITALS
1. 1 Town sought quotations 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 for heating ventilation and air conditioning ( HVAC) preventative maintenance and repair 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 14, 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 July 1, 2024, through June 30, 2029, 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.
Agreement for Services
Air Systems Inc.
Attachment 2.
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277
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: Compensation for year one ( FY 2024/ 25) shall not exceed 104,320. Compensation for future years will be the base cost of $104, 320 and shall be adjusted upward annually for the remaining term of this agreement by the change, if any, in 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.
Year 1— FY 2024/ 25 = $ 64, 320 + $ 40, 000 ( unforeseen repairs) = $ 104, 320 Year 2 — FY 2025/ 26 = $ 64, 320 + $ 40, 000 ( unforeseen repairs) = $ 104, 320 Year 3 — FY 2026/ 27 = $ 64, 320 + $ 40,000 ( unforeseen repairs) = $ 104, 320 Year 4— FY 2027/ 28 = $ 64, 320 + $ 40,000 ( unforeseen repairs) = $ 104, 320 Year 5 — FY 2028/ 29 = $ 64, 320 + $ 40, 000 ( unforeseen repairs) = $ 104, 320 For a total agreement not to exceed $ 521, 600*
Total compensation does not include CPI adjustments for Years 2- 5.
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
Agreement for Services
Air Systems Inc.
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 Los Gatos, CA 95031- 0655
Email ( preferred): AP@losgatosca. gov
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 ofthese 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
Agreement for Services
Air Systems Inc. Page 83
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 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:
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.
Hi. 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:
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.
Hi. Any failure to comply with reporting provisions ofthe policies shall not affect coverage provided to the Town, its officers, officials, employees or volunteers.
Agreement for Services
Air Systems Inc. Page 84
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 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 been given to the Town. Current certification of such insurance shall be kept on file at all times during the term ofthis 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. 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. 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
Agreement for Services
Air Systems Inc. Page 85
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 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, 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.
Agreement for Services
Air Systems Inc. Page 86
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277
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)].
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
Air Systems Inc.
940 Remillard Court
San Jose, CA 95122
Agreement for Services
Air Systems Inc. Page 87
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 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, 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.
Agreement for Services
Air Systems Inc. Page 88
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 IN WITNESS WHEREOF, the Town and Service Provider have executed this Agreement.
Town of Los Gatos by:
DocuSigned by:
LwtL Pvtth
853FEEAMB39470...
Laurel Prevetti, Town Manager
Recommended by:
DocuSigned by:
Mom vIAA*
UE I 531349644G" ...
Nico le Burniam
6/ 26/ 2024
6/ 20/ 2024
Director of Parks and Public Works
Approved as to Form:
DocuSigned by:
At°Viatt, ()U6/ 25/ 2024 EPD673
8... Gabrielle Whelan, Town Attorney Attest:
DocuSigned
by: UktA,
eli (Pod, BF6EBCBtzuz
i4 -d .. Wendy Wood, CMC, Town Clerk 6/
26/ 2024 Air
Systems Inc. by: DocuSigned
by: kohl
Cud EgnaeD -
4- 1 F... Marty Cull, Executive Chief
Financial Officer Page
9of 9 6/
20/ 2024 Vice
President, and Agreement
for Services Air
Systems Inc. Page 89
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 Air Systems
An EMCOR Company
Cover Letter & Statement of Qualifications
May 14, 2024
To Whom It May Concern,
Air Systems has been led by Art Williams ( President & CEO) and Marty Cull ( V. P.) for over 25 years. As an EMCOR Company, we are held to the highest standards of accountability, record keeping and invoicing, technical training and expertise, and most importantly — ethics and morals. We are audited by EMCOR publically traded on the NYSE) twice per year, but are otherwise mostly left to operate in the relationship forging, trust winning manner that the bay area has expected from Air Systems for over 50 years.
Our South Bay Technician Leadership Team, led by Journeyman -Foreman Noah York ( 10 years at ASI), collectively tout over 70 years of practical HVAC experience and are all expert HVAC technicians and communicators who oversee all preventive maintenance, planned and emergency repairs, and project work. We have over 20 apprentice and journeyman level technicians dedicated to our south bay partners and guarantee a 2 hour response time to their emergency needs.
I, bidder Joseph Barton, have been with Air Systems since 2013 and have won numerous sales and customer service awards. My client -centric approach has led to many accolades from ASI and partners alike. In my account portfolio, I manage several major municipalities, such as Town of Los Gatos, Alameda County Water District, the City of Orinda & the Contra Costa Water District. My decade plus experience in the HVAC industry, coupled with my world class communication skill set and passion ( B. A., Communication Studies, SJSU), make me an account manager that is knowledgeable, responsive, friendly and accountable.
The team at Air Systems is looking forward to a mutually prosperous relationship with the Town of Los Gatos. Thank you in advance for your time and consideration.
Kindest Regards,
Joseph Barton
Service Sales Manager
408) 616- 9918
joseph. barton@airsystemsinc. com
San Jose Office: 940 Remillard Court, San Jose, CA 95122 Phone (408) 280- 1666 Fax (408) 280- 1020 Sacramento Office: 4620 Northgate Blvd, Suite 155, Sacramento, CA 95834 Phone ( 916) 629- 0001
EXHIBIT A
Aug• Systems
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 Solicitation Number: HVAC 2024
Bid Amount: $64, 320. 00
Solicitation Number: HVAC 2024
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 PROPOSER ( please print):
Address:
ATTACHMENT B
Proposer' s Information Form
Ptir Sysl evks , inc .
No Res.( ; LIe&ra. CA . , Seim dose- ( A ' 51 Z Z
1st Contact person ( Name): 305cee t gq,CioyTitle: $ ervi ce 5chi Ps titketa Office Tel: CKos) z$0' I 677 Direct/ Cell: &O is) 6 16 - QQ i2; Fax: Email:
3.6see.. . ‘ QQjJ. Q 0J, rsy5' ' CwcCtrtc . ccrwt. 2nd
Contact person (Name): pc. u\ Rcci nctl: Title:
Scjeb (: i f` rc* r Office Tel: (M OS) 2 V6 — ( 477 Direct/ Cell: (011) 3 Ito " 17 Z R Fax: — Email:
Pact . Ouce.. irk 1 Z Qs arc sy $.' S i n c- f dLc-t State Contractor's License Number: S 5$ 3 3 0 Proposer,
if selected, intends tocarry onthe business as (check one): Individual Joint Venture Partnership ' Corporation Year
incorporated? I479 In what state? CA.( i f' or/11scl. When authorized todo business in California? ): 1' 179 ( M4. rch) Other ( explain): Page
20 of 34
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277
PROPOSER' S SIGNATURE
No proposal shall be accepted which has not been signed in ink in the appropriate space below:
By signing below, the submission of a proposal shall be deemed a representation and certification by the Proposer that they have investigated all aspects of the RFP, that they are aware of the applicable facts pertaining to the RFP process, its procedures and requirements, and they have read and understand the RFP. No request for modification of the proposal shall be considered after its submission on the grounds that the Proposer was not fully informed as to any fact or condition. 1) If Proposer is INDIVIDUAL,
sign here:
1 ( a
2) If Proposer is PARTNERSHIP or
JOINT VENTURE, at least ( 2) Partners
or each of the Joint Venturers
shall sign here: n (4_
Proposer' s Signature
Proposer' s typed name and title
Date:
Partnership or Joint Venture Name
type or print)
Signature
Name of Member of the Partnership or Joint Venture
type or print)
Date:
Signature
Name of Member of the Partnership or Joint Venture
Name (type or print)
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 Date:
3 If Proposer is a CORPORATION,
the duly authorized officer(s) shall
sign as follows: The undersigned certify that they
c
are respectively:
C' ief F Ack cut O[Tzce Title)
and r (0. ( Title)
of the corporation named below; that they are
designated to sign the Proposal Cost Form by
resolution (attach a certified copy, with corporate seal, if applicable, notarized as to its authentiTown or
Secretary' s certificate of authorization) for and on
behalf of the below named CORPORATION, and that
they are authorized to execute same for and on behalf
of said CORPORATION.
AIR $ TP ( tJG. Corporation
Name (type or print) Signature
R!
C K,c4 2 0 G I L LHA r-t Name
of Member ofthe Corporation ( type Date:
S/ I90 - 02 or
print) Signature
Name
of Me . : - r of the Corporation ( type or print) Page
22 of 34
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277
ATTACHMENT D
Bid Price Sheet
For all services described below, unless excluded by the Town in description of services below, the Town shall consider unit prices below to include all labor, equipment, fees of any kind, overhead, insurance, fuel, materials, surcharges, disposal fees, and any other costs associated with and necessary for the Bidder to perform such service. No qualifications, exemptions, or alterations of services described below will be allowed. Failure to comply will result in disqualification of bid.
A. Preventative Maintenance
Building Number of Hours/ Month Monthly Cost
Civic Center 5 ji17‘ g . 9'
Adult Recreation Center ji. 10ci6•
Youth Recreation Center 66 1117. Library
6 1442. co
Police
Operations Building L/ Qi/' PPW
Service Center 2
4 2-3, B.
Labor Rates for Extra Work, as Required Labor
costs must reflect prevailing wages. Labor
Category Straight Time ($ per hour) Overtime ($ per hour) HVAc Sru::e Ciktl$ ii 14/ 9. 258 . tAo`
4a. W' kc Sett; y /
ce
Sunda tc i s It ( a. o
11318 . Page
30 of 34
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 C. Equipment and Vehicle Charges for Extra Work, as Required Equipment Category Rate ( y,pjp.tr I r• Sta. nc4
k'3AC 54C. Ca.tl'' Tr r A S5
Fuck Sare__LQ i 1c\
D. Supply Mark- ups for extra work, as Required
Description Mark- up
M 25470
E. CaII Out Minimums
Description Mar-uy16(% + Trock 0.44%.rer. 1$ 2$ 4
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 F. Additional Information
1. Company Name Air Jy. e,....A.S , ‘ AC.
2. 2. Address from which service will be provided:
Q(( o R.e" Ai( lard 64 -) sari " Tose Cc- 45 l ZZ.
00. 6. rK; leg - mart& Town of Los Gates)
3. Location of Shop and Storage Facility ( must be within 20 miles from Town limits:
sdw.. cis c o ... 40
4. Number of years providing the specified service: 50
5. Business Organization ( Check One):
Individual Proprietorship
Partnership
Corporation f (c)
Other
If incorporated, provide the following information:
Date of incorporation: Mqr, 1Q71 State of incorporation: CA Names and titles of all officers and directors:
Ark w; (( amA s ( cE.o) & Ricer -a lei It i o ( Vo)
If an individual or partnership, provide the following information:
Formation date of company: it (q
Name and address of all partners, indicating whether they are general or limited partners:
Ala_
6. List the names, titles, and qualifications of the key personnel who will perform work under this contract as well as their roles in relation to the contract. Identify the primary technician to be designated for the Town. Include their certifications, experience, and training.
mac. Rc o i ba.t%%cam ( e)A ' c rtwrn; c , a+, 54• ie5) 13 yew-33 \ W)iC 1 ndt)4ry Gxeedkt ence , cut ten+
Sales Ka telise1- t AS t
Fo rc...tA CLAA —) ll 0 COON `{ oak
1 20 -E' year ... 10 v we . 4.."- IN
H V - R} cot r ent Too L G - co r e•A.•• a.4. l..
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277
7. Indicate whether proposer has ever failed to complete any contract awarded to it. If so, note when, where, and why. Attach additional sheets, if necessary. pone.
8. Indicate whether proposer has been or is the subject of a bankruptcy or insolvency proceeding or subject to assignment for the benefit of creditors.
Alone -
9. List subcontractors, if any, who will perform work under this contract. Attach additional sheets, if necessary. ( acme)
Company A/ ..
Location
Describe work to be contracted
Company nick_
Location
Describe work to be contracted:
Company f ' A
Location
Describe work to be contracted: AcoA,
10. List three organizations for whom proposer performed similar services of a similar scope in the last three years.
Organization lOwn. crF LoS 6101-o5
Location 6 ( bca': w. S t..,'rf'1l i A i1,.4 Tutar i.. dP L&S G 4:65 Contact Person pa.n kek\ cf_ Phone(''' f6a) 395 - 5310
Describe work performed by proposer ; de * i c,ci * o ' - k43$ RFP Date work performed 2015 + V ffCS eta -
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 Organization AkeNt'KCccL Cot) NA/ Weer Arc:E
Location Al ACWO \ e ' Zo. . S ‘ qneaLr ceWko, t CA
Contact Person Mif4.0_ Casey Phone( 510) 557 - 1 ( l
Describe work performed by proposer bua.r4cr.( tivAc frG Jr.e-- Mai.ni e- Cfw L e:sf seem Zt_ Ct jibns P
Date work performed 2O \M Qltsie_rckOrganization Ci fy of Orindc.
Location CGvi c. Cer%4er- , 10;( 9rail gd CoP4Arev, ' y Cen( el - Contact Person S+eve E 4,e4 + Phone 0L5) 2 53 - 1fz93
Describe work performed by proposer c uc .+ e.- ly f{VA. C. Pre ‘reri ivt /t'! ft,4.
Date work performed ZOO'{ + pr'e.Sr-Af
ADDENDA
Proposer acknowledges receipt • f the following Addenda:
Number 1 Date 5 to zY - 3
Number Z- Date
Number Date
SIGNATURE
Signature
iosepk ( 6J+
Name (printed or typed)
Nods) t(0 - qR!
Telephone
65 - 117'( 05G
Tax ID Number
5crvi c e . Sal.e4 NA arTitle
M0.Y ( Y ) Z0z'f
Date
n ( cL
Fax
39052.
Los Gatos Business License Number
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 Town of Los Gatos - HVAC Preventative Maintenance and Repair Services Project Proposals
Bid
Item Location Description
Intent to Award
Air Systems, Inc.
ACCO Engineered
Systems Name Vendor
Bid Bid Bid
1 Town -wide
HVAC Preventative
Maintenance and Repair
Services
64, 320. 00 72, 400. 00
Total 64, 320. 00 72, 400. 00 0. 00
Town of Los Gatos
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 DATE:
TO:
TOWN OF LOS GATOS MEETING DATE: 06/ 4/ 2024
COUNCIL AGENDA REPORT
May 30, 2024
Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Authorize the Town Manager to Execute a Five -Year Agreement for Services with Air Systems Inc. for Heating Ventilation and Air Conditioning (HVAC) Preventative Maintenance and Repair Services Including a Contingency for Unforeseen Repairs for a Total Agreement Amount of $521, 600 RECOMMENDATION:
Authorize the Town Manager to execute a five-year Agreement for Services with Air Systems Inc. (Attachment 1) for heating ventilation and air conditioning (HVAC) preventative maintenance and repair services including a contingency for unforeseen repairs for a total agreement amount of $521, 600.
BACKGROUND:
The Town of Los Gatos has utilized contractual HVAC services for Town -owned facilities for the past several years. Staff reviews these maintenance contracts regularly to ensure that the services provided are being performed satisfactorily, competitively priced, and continue to meet the Town' s expectations and contract terms. Staff has determined that contractual HVAC services are the most effective service delivery method for this component of building maintenance due to the high level of responsiveness required, the specialized expertise needed, and the essential operations housed in these facilities. The current HVAC services contract with Air Systems, Inc. will expire on June 30, 2024.
DISCUSSION:
With the existing contract set to expire at the end ofthis fiscal year, staff advertised a Request for Proposal ( RFP) on April 19, 2024 for contract HVAC services at six main municipal facilities, PREPARED BY: Dan Keller
Facilities & Environmental Services Manager
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 Page 101
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute an Agreement for Services with Air Systems Inc. for Heating Ventilation and Air Conditioning ( HVAC) Preventative Maintenance and Repair Services Including a Contingency for Unforeseen Repairs
DATE: May 22, 2024
DISCUSSION ( continued):
including emergency and after- hours response and repair. Firms were asked to provide their capability and qualifications across services and to provide line -item costs per hour for additional services and repairs as needed, such as upgrades, modifications, and replacements due to failure.
Six companies attended a mandatory walkthrough, and two proposals were received on May 14, 2024. Air Systems Inc. presented the lowest responsible proposal for $64, 320 annually and 40, 000 is being added for unforeseen repairs, resulting in a 5- year agreement of $521, 600.
This amount for unforeseen work is due to our aging HVAC equipment and multiple repairs done annually.
Air Systems Inc. has a successful work history with the Town by providing HVAC service and repairs for over five years. The agreement term allows for continuity of service and maximizes savings by engaging the firm for multiple years. The contract language provides for cancellation should the need arise during the contract term.
CONCLUSION:
Authorize the Town Manager to execute an Agreement for Services with Air Systems Inc. for heating ventilation and air conditioning ( HVAC) preventative maintenance and repair services for a total agreement amount not to exceed $ 521, 600 including a contingency for unforeseen work.
FISCAL IMPACT:
Funding for Fiscal Year 2024/ 25 is included in the Proposed Operating Budget for HVAC services at the Police Operations Building, Civic Center, Library, Parks and Public Works Service Center, Adult Recreation Center, and the Youth Recreation Center. Execution of any options to continue the service in subsequent years will be contingent upon staff evaluation of the quality of the services provided, as well as the Town Council' s appropriation of funding through the budget process in subsequent fiscal years.
ENVIRONMENTAL ASSESSMENT:
In accordance with CEQA Guidelines Section 15378( b)( 5), approval of this agreement is not a project subject to CEQA because it is an administrative activity that will not impact the environment.
ITEM NO. 5.
DocuSign Envelope ID: F877F1C2- C664- 4891- 9E7B- 5FDCD84D1277 PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute an Agreement for Services with Air Systems Inc. for Heating Ventilation and Air Conditioning ( HVAC) Preventative Maintenance and Repair Services Including a Contingency for Unforeseen Repairs
DATE: May 22, 2024
Attachment:
1. Agreement for Services with Air Systems Inc. with Exhibit A
ITEM NO. 5.
PREPARED BY: James Watson
Senior Civil Engineer – Land Development
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Administrative Services Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/15/2026
ITEM NO: 6
DATE: September 15, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute an Agreement for Professional Services with Ghirardelli Associates, Inc., Effective upon Execution and through June 30, 2031, to Support the Parks and Public Works Department Land Development Application Reviews and Inspections in an Amount Not to Exceed $1,000,000
RECOMMENDATION: Authorize the Town Manager to execute a pass-through professional services agreement with Ghirardelli Associates, Inc., effective upon execution and through June 30, 2031, to support the Parks and Public Works Department land development application reviews and associated inspections in an amount not to exceed $1,000,000.
FISCAL IMPACT:
The proposed professional services agreement (Attachment 1) provides contract capacity in an amount not to exceed $1,000,000 through June 30, 2031. The Agreement does not guarantee any minimum amount of work and no Town funds are proposed for use in this agreement. As a pass-through agreement, services will be authorized through discrete tasks only after the Town confirms that sufficient applicant-funded deposits (Account Code 1115999-48416) or other legally authorized applicant funds are available to pay for the services (Account Code 1115999- 68416).
Staff time associated with administering and managing the consultant services will also be recovered from applicants through the applicable developer deposit or adopted fee mechanism (Account Code 1115202-44619).
ITEM NO. 6.
PAGE 2 OF 4
SUBJECT: Authorize the Town Manager to Execute an Agreement for Professional Services with Ghirardelli Associates, Inc.
DATE: September 15, 2026
The Agreement’s 2026 hourly rates are effective through December 31, 2026 and are subject to an annual increase no more than the San Francisco Bay Area Consumer Price Index over the rates then in effect.
No net General Fund or other unrestricted Town fund impact is anticipated because consultant services will be funded by the applicable development applicants. General Fund or other unrestricted Town funding would not be used unless separately approved by the Town.
STRATEGIC PRIORITY:
This item addresses the Town’s Strategic Priority to preserve the Town’s small-town charm and provide a range of housing opportunities and historic neighborhoods, while diligently maintaining and implementing the Housing Element. (Goal: Community Character). By providing additional capacity for timely and thorough review of development plans and construction activities, the recommendation will help ensure that development projects comply with Town standards and adopted conditions of approval. This approach supports responsible development while helping preserve the Town’s community character and quality of life.
BACKGROUND:
The Town’s adopted 2023-2031 Housing Element identifies a Regional Housing Needs Allocation (RHNA) of 1,993 housing units for the 2023-2031 eight-year planning period. The Town has experienced a significant increase in land development activity associated with the implementation of the Housing Element and other State housing laws. Most recently, a single entitled project accounted for 451 proposed new dwelling units.
Once a project is entitled, the developer must submit building permit applications and various other documents required by the project’s conditions of approval. The Parks and Public Works (“PPW”) Department is responsible for reviewing these plans and documents, issuing permits, and inspecting construction activities to ensure compliance with the conditions of approval and all applicable federal, state, and local regulations. The increased volume and complexity of development activity have created a greater demand for PPW’s land development review and inspection resources.
To supplement its in-house resources, PPW issued a Request for Qualifications (RFQ) in 2023 to establish an on-call consultant list for Engineering and Design Support Services. The RFQ solicited firms across 12 disciplines, including “Land Development Plan Review and Inspection Services.” Firms with experience in land development plan review and construction inspection were invited to submit their qualifications for consideration. Responses were received from
ITEM NO. 6.
PAGE 3 OF 4
SUBJECT: Authorize the Town Manager to Execute an Agreement for Professional Services with Ghirardelli Associates, Inc.
DATE: September 15, 2026
several firms and evaluated based on qualifications, experience, technical expertise, staffing resources, responsiveness, and familiarity with California municipal requirements.
On February 20, 2024, the Town Council approved the On-Call Consultants List for Engineering and Design Support Services. Ghirardelli Associates Inc. was one of six firms approved for Land Development Plan Review and Inspection Services.
DISCUSSION:
Workloads associated with development applications, building permits, and private construction activities can fluctuate significantly from year to year. In recent years the Town has seen private development projects of increasing complexity due to their high density and multiple stories. Managing the construction phase of these projects requires knowledge of advanced engineering and construction principles that are outside the scope of work of Town staff. Utilizing qualified on-call consultants provides the Town with the expertise needed to ensure the Town’s interests are protected.
The proposed agreement with Ghirardelli includes hourly rates and defines the terms and conditions under which services may be authorized by the Town. The Agreement does not guarantee any minimum amount of work or compensation. Services will be authorized through discrete tasks only after the Town confirms that sufficient applicant-funded deposits or other legally authorized applicant funds are available to pay for the services. The Agreement provides that the Town has no obligation to pay the Consultant for services unless sufficient applicantfunded deposits or other legally authorized applicant funds are available.
CONCLUSION:
Awarding a professional services agreement to Ghirardelli for on-call engineering services will enable the Town to quickly and efficiently respond when larger development projects receive entitlements and advance into the construction phase. The agreement will provide the Town with additional capacity to review construction-phase documents and support related inspection activities as needed.
COORDINATION:
This staff report was coordinated with the Administrative Services Department, Town Attorney’s Office, and the Town Manager’s Office.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ITEM NO. 6.
PAGE 4 OF 4
SUBJECT: Authorize the Town Manager to Execute an Agreement for Professional Services with Ghirardelli Associates, Inc.
DATE: September 15, 2026
Attachments:
1. Professional Services Agreement – Ghirardelli Associates
ITEM NO. 6.
AGREEMENT FOR PROFESSIONAL SERVICES
Agreement for Professional Services
Ghirardelli Associates, Inc.
2026 PPW Development Review and Inspection Services
PREAMBLE
THIS AGREEMENT is by and between TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and Ghirardelli Associates, Inc. (“Consultant”), a Corporation whose address is 6601 Owens Drive, Suite 155, Pleasanton, CA,94588. This Agreement is made with reference to the following facts.
I. RECITALS
A. Town desires to engage Consultant to provide pass through services for development review and inspections.
B. Consultant represents and affirms that it is willing to perform the desired work pursuant to this Agreement.
C. Consultant warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement. Consultant acknowledges Town has relied upon these warranties to retain the Consultant.
II. AGREEMENT
A. Scope of Services. Consultant shall provide services as described in the Scope of Services, which is hereby incorporated by reference and attached as Exhibit A.
B. Term. The term of this Agreement shall be from upon execution to Monday, June 30, 2031.
C. Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for the Consultant to practice its profession. Consultant shall maintain a Town of Los Gatos business license as required in Chapter 14 of the Code of the Town of Los Gatos.
D. Sole Responsibility. Consultant shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.
E. Information/Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant 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 Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall not make any of these documents or information available to any individual or organization not employed by the Consultant or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Consultant 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 Consultant in connection with other projects shall be solely at Town's risk, unless the Consultant expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Consultant which is and has been confirmed in writing by Consultant to be a trade secret of Consultant.
Attachment 1
ITEM NO. 6.
Agreement for Professional Services
Ghirardelli Associates, Inc.
F. Compensation: Compensation for Consultant's professional services shall be paid at the established hourly rates, as set forth in the Fee Schedule, which is attached hereto. Payment shall be based upon Town approval of the Scope and Fee for each task and payment of fees by individual applicants. The total amount for this agreement shall not exceed $1,000,000.00.
G. 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
Email (preferred): [email protected]
H. Availability of Records. Consultant shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Consultant shall make these records available to authorized personnel of the Town at the Consultant offices during business hours upon written request of the Town.
I. Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Consultant. No portion of these services shall be assigned or subcontracted without the written consent of the Town.
J. Independent Contractor. It is understood that the Consultant, 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 Consultant 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. Consultant agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Consultant 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 Consultant or is based on allegations of Consultant's negligent performance or wrongdoing.
K. Conflict of Interest. Consultant understands that its professional responsibilities are solely to the Town. The Consultant has and shall not obtain any holding or interest within the Town of Los Gatos. Consultant 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, Consultant 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. Consultant shall not knowingly
ITEM NO. 6.
Agreement for Professional Services
Ghirardelli Associates, Inc.
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 Consultant discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement, Consultant shall promptly notify Town of this employment relationship, and shall, at the Town's sole discretion, sever any such employment relationship.
L. Non-Discrimination. Consultant warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Consultant nor its subconsultants 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
A. Minimum Scope of Insurance:
1. Consultant 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.
2. Consultant 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.
3. Consultant 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.
4. Consultant agrees to have and maintain, for the duration of the contract, professional liability insurance in amounts not less than $1,000,000 which is sufficient to insure Consultant for professional errors or omissions in the performance of the particular scope of work under this agreement.
B. General Liability:
1. 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 Consultant; products and completed operations of Consultant, premises owned or used by the Consultant.
2. The Consultant'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 agents shall be excess of the Consultant's insurance and shall not contribute with it.
3. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or agents.
ITEM NO. 6.
Agreement for Professional Services
Ghirardelli Associates, Inc.
4. Consultant'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.
C. 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 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.
D. Workers’ Compensation. In addition to these policies, Consultant 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, Consultant shall ensure that all subconsultants employed by Consultant 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.
E. Indemnification. The Consultant shall indemnify the Town its elected and appointed officials, employees and agents 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 any act or omissions of the Consultant, or any of the Consultant's officers, employees, or agents or any subconsultant. Consultant shall defend the Town against any such claims.
IV. GENERAL TERMS
A. 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.
B. 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.
C. Mediation. Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation.
The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties. In the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be selected by a blind draw. The cost of mediation shall be borne equally by the parties.
Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.
D. Termination of Agreement. The Town and the Consultant 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 Consultant 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 Consultant an amount that bears the
ITEM NO. 6.
Agreement for Professional Services
Ghirardelli Associates, Inc.
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.
E. Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Consultant.
F. 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
Ghirardelli Associates, Inc.
6601 Owens Drive, Suite 155, Pleasanton, CA,94588
or personally delivered to Consultant to such address or such other address as Consultant designates in writing to Town.
G. 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.
H. Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Consultant. 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.
ITEM NO. 6.
Agreement for Professional Services
Ghirardelli Associates, Inc.
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement.
TOWN OF LOS GATOS: GHIRADELLI ASSOCIATES, INC.:
**signature_155200**
SIGNATURE
Chris Constantin
FULL NAME
Town Manager
TITLE
**date_signed_155200**
DATE SIGNED
**signature_155202**
SIGNATURE
Randall Bruner
ENTER CONSULTANT SIGNATORY'S NAME
President/CEO
ENTER CONSULTANT SIGNATORY'S TITLE
**date_signed_155202**
DATE SIGNED
Approved as to form:
**signature_155203**
SIGNATURE
Gabrielle Whelan
FULL NAME
Town Attorney
TITLE
**date_signed_155203**
DATE SIGNED
The execution date is the date on which the last party has signed.
Attachments:
A - Scope and Fee Schedule
ITEM NO. 6.
Agreement for Professional Services
Ghirardelli Associates, Inc. Page 114
ITEM NO. 6.
Exhibit A
Scope and Fee Schedule
ITEM NO. 6.
On-Call Consulting Services 2024: Land Development Plan Review and Inspection Services | 3 Section 1: Statement of Qualifications
LAND DEVELOPMENT PLAN REVIEW SERVICES
The Land Development Plan Review service offered by GAI provides a comprehensive and expert evaluation of land development projects, ensuring compliance with local, state, and federal regulations. Through this service, GAI plays a pivotal role in facilitating the successful realization of development and redevelopment projects, by assessing various aspects of proposed developments and collaborating with permitting agencies and key stakeholders. From the early inception of a project during entitlements, to the final construction punch-list and close-out, the Land Development Review service acts as a vital checkpoint, contributing to the creation of sustainable, functional, and aesthetically pleasing spaces. With a proven history of expertise in this field, GAI’s Land Development Review service stands as an essential partner for local agencies, developers, and communities alike, striving to achieve harmonious and responsible land development.
GAI employs a systematic approach to the plan review process which ensures thoroughness and precision at every stage of the development process.
GAI Plan Review Process
Planning Entitlement Review
GAI will provide the Town with Planning Entitlement Review services, the scope of which generally consists of:
• Attending pre-application meetings with Town and Applicant and providing preliminary comments • Reviewing various entitlement packages (including but not limited to Tentative Maps, Site Plan and Architectural Review, Tentative Parcel Maps, etc.), which may include the following conceptual plans/reports:
o Site plans including turning templates, vehicle/pedestrian circulation, and emergency vehicle access o Grading and drainage plans
o Utility plans
o Stormwater management plans and approach to ensure conformance to the NPDES Municipal Regional Permit
o Traffic signal, photometrics, street lighting, landscape and irrigation plans o Various mapping elements including easement dedications, vacations, creation of new lot lines etc. o Traffic, utility, and geotechnical studies.
• Assisting the Town in preparation of project specific conditions of approval and development agreements (if necessary).
• Attending various meetings with Town staff, applicants, and/or other key stakeholders to progress the project. • Providing aid to the Town during the CEQA process.
Exhibit A
ITEM NO. 6.
On-Call Consulting Services 2024: Land Development Plan Review and Inspection Services | 4 Section 1: Statement of Qualifications
• Attending Town Council, Design Review Board, and various other community meetings as requested by the Town, to provide technical advice to staff or seek clarification on standards and policies from staff.
Building and Encroachments Plan Review
GAI will provide the Town with comprehensive Building and Encroachments Plan Review services, the scope of which generally consists of:
• Reviewing Building and Improvement Plans, which may include:
o Rough grading
o Site plans including turning templates, vehicle/pedestrian circulation, and emergency vehicle access
o Site grading and drainage
o Utility and associated utility profiles
o Stormwater management plan and approach for conformance to the NPDES Municipal Regional Permit
o Signing, striping, and bicycle/pedestrian facility design o Erosion control, haul routes, construction Best Management Practices, and post-construction water quality control
• Technical and conformance reviews of project utility reports (sewer, storm, and water). • Geotechnical investigation reports will be reviewed to ensure recommendations are incorporated in the project design.
• Traffic impact studies will be reviewed to ensure recommendations are included in the project design. • Confirm that the plans conform to Town Engineering Standards, Town Municipal Code, Project conditions of approval, CEQA mitigation measures, and any associated master plans. • Review bonding estimates for costing accuracy.
• Conformance reviews of landscape and joint trench plans with civil plans. • Review operations, maintenance and other necessary agreements. • Street lighting and photometric plans for conformance with Town and industry standards. • Meetings and coordination with Town staff, applicants, and outside agencies (as requested) As part of the plan review process, GAI will prepare a plan check comment letter and include any associated redlined documents. These comments and redlines will serve as the applicant's guidelines in making corrections and preparing their resubmittal package.
Engineering Construction Support
Once a development project has commenced construction, there are a number of engineering support tasks which the Town may need to perform. This is especially true of larger development projects with extensive off-site Public right of way improvements which fall under the Town’s purview. Therefore, while it was not requested in the Town’s RFQ, GAI can add engineering construction support as a task to this on-call contract. The scope of work would general include:
• Acting on behalf of staff as the Town’s Public Works construction manager. • Collaborating with Town staff on issues that arise in the field during construction. • Reviewing engineering material submittals and/or requests for information (RFI) on behalf of Town staff. • Reviewing plan revisions made by the applicant during construction. • Attending pre-construction and in-progress construction meetings (as requested).
GAI’s Skilled Plan Review Engineers
Each plan review assignment will be directed from the Town to GAI’s established project manager. The plan review will then either be:
• Conducted directly by the project manager or
• Conducted by one of GAI’s highly skilled plan review engineers, under the supervision and direction of the State of California licensed project manager
GAI places a strong emphasis on ensuring that every plan review assignment is handled by the same qualified staff from beginning to end. This commitment ensures a consistent review process and enhances the efficiency of the permitting process for applicants.
ITEM NO. 6.
On-Call Consulting Services 2024: Land Development Plan Review and Inspection Services | 5 Section 1: Statement of Qualifications
Quality Assurance and Quality Control (QA/QC) Procedures The QA/QC process for land development plan review is paramount to a project’s success and is taken seriously at GAI.
To ensure the quality of each deliverable GAI provides, the following set of QA/QC steps are rigorously implemented with every plan review:
• At the start of each plan review, a designated QA/QC staff member is assigned to the project by the project manager. In some cases, the project manager will be performing the QA/QC. • The designated QA/QC staff member is responsible for reviewing not just the plan check engineer’s comment letter, but also the plans and other associated project documents to ensure major issues have not been missed.
• Comments made by the QA/QC staff will be discussed with the project manager and/or plan check engineer and integrated into the plan review package prior to finalizing the review to the Town.
Tentative Plan Review Timeline
GAI acknowledges that each development project comes with its own unique set of deadlines and obstacles to conquer. We remain dedicated to collaborating closely with the Town to tackle each of these challenges, ensuring that reviews are delivered smoothly and on time. While pinpointing precise timeframes for review turnarounds proves challenging without a full grasp of the project's scope, GAI has outlined a general structure for typical review categories. While these are not steadfast timelines, GAI will always do its best to work with the Town and deliver the review within an agreed upon timeline.
Task Turnaround Time (Business Days)
Pre-application Package
Application material to be reviewed prior to pre-application meeting. Pre-application comments to be completed within ten (10) days from notice by Town (or other agreed upon date with Town)
Entitlement Application Package
(including preparation of conditions of approval)
Twenty (20) days from notice by Planning (or other agreed upon date with Town)
Building and Encroachments Packages
(1st Review) Ten (10) working days from notice to proceed by Town Building and Encroachments Packages
(Subsequent Reviews)
Typically, five (5) working days from notice to proceed by Town Potentially up to ten (10) working days if 1st review was substantially incomplete
Review of various supporting documents
(i.e. bonding estimates, development agreements,
maintenance agreements, etc.)
Five (5) working days from notice to proceed by Town
Exhibit A
ITEM NO. 6.
On-Call Consulting Services 2024: Land Development Plan Review and Inspection Services | 6 Section 1: Statement of Qualifications
INSPECTION SERVICES
Developer funded projects are different than standard public works projects. They are fast-paced and cost conscious.
Issues need to be identified early and resolved at the lowest level to keep the projects moving forward. When we work as the Quality Assurance Representative for a local agency for privately funded development projects our focus is to be problem solvers. Our goal is to ensure that the developer and construction team are delivering on their commitments of quality and schedule to the local agency and doing right by the community. Very simply, we do this through:
• Experienced Inspectors: By staffing our projects with experienced inspectors that have in- depth knowledge of all components of development, we can identify potential issues and resolve them quickly. • Robust Operational Support and Communication: By providing consistent support in the daily operations of the project and maintaining continuous communication between the field inspector, client, and developer we ensure that all project goals are met and that the Town and the Community receive a quality product.
Field Inspection
GAI construction inspectors will perform all field
inspection activities to monitor compliance with the
contract plans and specifications of private
developments. We will record all items of work, labor,
equipment, materials incorporated, materials tested, and any other pertinent information in a daily diary for
permanent record of events. Photographs of project
progress will be taken on a regular basis and kept for
permanent records to support disputes and verify quality for acceptance. A representative set of photos will be
shared with the department on a weekly basis.
We will perform field measurements to ensure
compliance with contract documents and report on daily
completed work. We will work alongside Town materials
testing consultant and/or the developers materials
testing consultant to monitor field testing in accordance with project specifications. We will inspect all material delivered to the project for compliance and complete the appropriate documentation for each item. Our construction inspectors will inspect the work for final acceptance. Any non-conforming work will be documented and included in the punch-list for completion. All non-compliant work will be tracked and taken off the list for acceptance when the work is completed to our satisfaction, in meeting the contract requirements.
As the contract nears completion, the GAI inspectors will coordinate a "walk-through" including the contractor, the design staff, and Town representatives to develop the punch-list. GAI will then monitor the contractor's progress in completing the punch-list items. We will also help to ensure that no additional items are created in the process. Reports on the contractor's progress in correcting punch-list items will be reported to the Town daily or as requested.
GAI field staff will prepare electronic daily reports that document weather, shift duration, personnel on the project, equipment used, tracking of force account activities (including accurate recording of labor, equipment and materials used), phone conversations, field instructions and discussions, and any other daily occurrences pertinent to the scope, schedule, budget, quality, and safety related issues. Our Inspection staff monitor all daily activity for any impacts, noncompliance and/or enforcement of the project specifications and/or imposed best management practices (BMPs) to effectively minimize any impacts before they happen.
Inspection of Rough Grading, Bickford Ranch Development Exhibit A
ITEM NO. 6.
Municipal Engineering Services Hourly Rates
Classification 2026
Hourly Rate
Senior Principal Engineer $325
Principal Engineer $300
Senior Project Manager $283
Project Manager $267
Senior Engineer $255
Associate Engineer $225
Assistant Engineer $192
Senior Management Analyst $200
Management Analyst $174
Administrative Assistance $105
Engineering Trainee $93
1) Services are billed on a time-and-materials basis. All hourly rates include overhead costs. Overtime services provided outside of normal business hours will be billed at 1.5x the applicable rate. 2) Any extensive reproduction or delivery service charges shall be billed at actual. 3) Beginning January 1, 2027, and annually thereafter during the term of the Agreement, hourly rates may be increased by no more than the San Francisco Bay Area Consumer Price Index (CPI) over the rates then in effect.
Exhibit A
Not in Contract
Not in Contract
ITEM NO. 6.
August 24, 2026
Town of Los Gatos
On-Call Land Development Plan Review and Inspection
Construction Management and Inspection Services
2026 Hourly Rates
Straight
Contract Manager / Project Manager Min. 262.14 $
Contract Manager / Project Manager Max. $ 449.88
Construction Manager / Resident Engineer / Structures Representative Min. 262.14 $ Construction Manager / Resident Engineer / Structures Representative Max. 395.99 $ Assistant Resident Engineer / Assistant Structures Representative Min. 215.57 $ Assistant Resident Engineer / Assistant Structures Representative Max. 317.15 $ Construction / Civil / Structures Inspector Min. $ 215.57 Construction / Civil / Structures Inspector Max. $ 317.15 Electrical / Mechanical Inspector Min. $ 215.57
Electrical / Mechanical Inspector Max. $ 317.15
Construction Safety Min. $ 215.57
Construction Safety Max. $ 317.15
Storm Water Pollution Prevention (SWPPP) Min. $ 215.57
Storm Water Pollution Prevention (SWPPP) Max. $ 317.15
Project Controls / Scheduler / Estimator Min. $ 215.57
Project Controls / Scheduler / Estimator Max. $ 360.00
Labor Compliance / Document Control Min. $ 157.28
Labor Compliance / Document Control Max. $ 288.02
UAS / UAV / FAA Drone Pilot Min. $ 160.46
UAS / UAV / FAA Drone Pilot Max. $ 317.15
1) Hourly rates include vehicle, mobile phone, laptop, and camera. 2) Any extensive reproduction or delivery service charges shall be billed at actual. 3) Construction inspection activities are subject to prevailing wage requirements. 4) Per prevailing wage requirements, a shift differential is for any covered work shift beginning after 2PM. 5) Rates are valid through 12/31/2026.
6) Beginning January 1, 2027, and annually thereafter during the term of the Agreement, hourly rates may be increased by no more than the San Francisco Bay Area Consumer Price Index (CPI) over the rates then in effect.
Classification Range
ITEM NO. 6.
PREPARED BY: James Watson
Senior Civil Engineer – Land Development
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Administrative Services Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/15/2026
ITEM NO: 7
DATE: September 15, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute an Agreement for Professional Services with Haley & Aldrich, Inc., Effective Upon Execution and through June 30, 2031, to Support the Parks and Public Works Department Land Development Application Reviews and Inspections in an Amount Not to Exceed $1,000,000
RECOMMENDATION: Authorize the Town Manager to execute a pass-through professional services agreement with Haley & Aldrich, Inc., effective upon execution and through June 30, 2031, to support the Parks and Public Works Department land development application reviews and associated inspections in an amount not to exceed $1,000,000.
FISCAL IMPACT:
The proposed professional services agreement (Attachment 1) provides contract capacity in an amount not to exceed $1,000,000 through June 30, 2031. The Agreement does not guarantee any minimum amount of work. As a pass-through agreement, services will be authorized through discrete tasks only after the Town confirms that sufficient applicant-funded deposits (Account Code 1115999-48416) or other legally authorized applicant funds are available to pay for the services (Account Code 1115999-68416). The Agreement expressly provides that the Town has no obligation to pay for consultant services unless sufficient applicant-funded deposits or other legally authorized applicant funds are available.
ITEM NO. 7.
PAGE 2 OF 4
SUBJECT: Authorize the Town Manager to Execute an Agreement for Professional Services with Haley & Aldrich, Inc.
DATE: September 15, 2026
Staff time associated with administering and managing the consultant services will also be recovered from applicants through the applicable developer deposit or adopted fee mechanism (Account Code 1115202-44619).
No net General Fund or other unrestricted Town fund impact is anticipated because consultant services will be funded by the applicable development applicants. General Fund or other unrestricted Town funding would not be used unless separately approved by the Town.
STRATEGIC PRIORITY:
This item addresses the Town’s Strategic Priority to preserve the Town’s small-town charm and provide a range of housing opportunities and historic neighborhoods, while diligently maintaining and implementing the Housing Element. (Goal: Community Character). By providing additional capacity for timely and thorough review of development plans and construction activities, the recommendation will help ensure that development projects comply with Town standards and adopted conditions of approval. This approach supports responsible development while helping preserve the Town’s community character and quality of life.
BACKGROUND:
The Town’s adopted 2023-2031 Housing Element identifies a Regional Housing Needs Allocation (RHNA) of 1,993 housing units for the 2023-2031 eight-year planning period. The Town has experienced a significant increase in land development activity associated with the implementation of the Housing Element and other State housing laws. Most recently, a single entitled project accounted for 451 proposed new dwelling units.
Once a project is entitled, the developer must submit building permit applications and various other documents required by the project’s conditions of approval. The Parks and Public Works (“PPW”) Department is responsible for reviewing these plans and documents, issuing permits, and inspecting construction activities to ensure compliance with the conditions of approval and all applicable federal, state, and local regulations. The increased volume and complexity of development activity have created a greater demand for PPW’s land development review and inspection resources.
To supplement its in-house resources, PPW issued a Request for Qualifications (RFQ) in 2023 to establish an on-call consultant list for Engineering and Design Support Services. The RFQ solicited firms across 12 disciplines, including “Land Development Plan Review and Inspection Services.” Firms with experience in land development plan review and construction inspection were invited to submit their qualifications for consideration. Responses were received from several firms and evaluated based on qualifications, experience, technical expertise, staffing resources, responsiveness, and familiarity with California municipal requirements.
ITEM NO. 7.
PAGE 3 OF 4
SUBJECT: Authorize the Town Manager to Execute an Agreement for Professional Services with Haley & Aldrich, Inc.
DATE: September 15, 2026
On February 20, 2024, the Town Council approved the On-Call Consultants List for Engineering and Design Support Services. Haley & Aldrich, Inc. was one of six firms approved for Land Development Plan Review and Inspection Services.
DISCUSSION:
Workloads associated with development applications, building permits, and private construction activities can fluctuate significantly from year to year. In recent years the Town has seen private development projects of increasing complexity due to their high density and multiple stories. Managing the construction phase of these projects requires knowledge of advanced engineering and construction principles that are outside the scope of work of Town staff. Utilizing qualified on-call consultants provides the Town with the expertise needed to ensure the Town’s interests are protected.
The proposed agreement with Haley & Aldrich, Inc. (HAI) defines the terms and conditions under which services may be authorized by the Town. HAI’s standard 2026 fee schedule is included and the rates provided show a broad category of labor classifications, but the services provided under this agreement are expected to be from senior staff, not associate or assistant engineers. The Agreement does not guarantee any minimum amount of work or compensation.
Services will be authorized through discrete tasks only after the Town confirms that sufficient applicant-funded deposits or other legally authorized applicant funds are available to pay for the services. The Agreement provides that the Town has no obligation to pay the Consultant for services unless sufficient applicant-funded deposits or other legally authorized applicant funds are available.
CONCLUSION:
Executing a professional services agreement to HAI for on-call engineering services will enable the Town to quickly and efficiently respond when larger development projects receive entitlements and advance into the construction phase. The agreement will provide the Town with additional capacity to review construction-phase documents and support related inspection activities as needed.
COORDINATION:
This staff report was coordinated with the Administrative Services Department, Town Attorney’s Office, and the Town Manager’s Office.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ITEM NO. 7.
PAGE 4 OF 4
SUBJECT: Authorize the Town Manager to Execute an Agreement for Professional Services with Haley & Aldrich, Inc.
DATE: September 15, 2026
Attachments:
1. Professional Services Agreement – Haley and Aldrich
ITEM NO. 7.
AGREEMENT FOR PROFESSIONAL SERVICES
Agreement for Professional Services
Haley & Aldrich
2026 PPW Development Review and Inspection Services - HAI
PREAMBLE
THIS AGREEMENT is by and between TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and Haley & Aldrich (“Consultant”), a Corporation whose address is 226 Airport Parkway, Suite 310, San Jose, CA 95110. This Agreement is made with reference to the following facts.
I. RECITALS
A. Town desires to engage Consultant to provide pass through services for review and inspections.
B. Consultant represents and affirms that it is willing to perform the desired work pursuant to this Agreement.
C. Consultant warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement. Consultant acknowledges Town has relied upon these warranties to retain the Consultant.
II. AGREEMENT
A. Scope of Services. Consultant shall provide services as described in the Scope of Services, which is hereby incorporated by reference and attached as Exhibit A.
B. Term. The term of this Agreement shall be from upon execution to Monday, June 30, 2031.
C. Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for the Consultant to practice its profession. Consultant shall maintain a Town of Los Gatos business license as required in Chapter 14 of the Code of the Town of Los Gatos.
D. Sole Responsibility. Consultant shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.
E. Information/Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant 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 Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall not make any of these documents or information available to any individual or organization not employed by the Consultant or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Consultant 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 Consultant in connection with other projects shall be solely at Town's risk, unless the Consultant expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Consultant which is and has been confirmed in writing by Consultant to be a trade secret of Consultant.
Attachment 1
ITEM NO. 7.
Agreement for Professional Services
Haley & Aldrich
F. Compensation: Compensation for Consultant's professional services shall be paid at the established hourly rates, as set forth in the Fee Schedule, which is attached hereto. Payment shall be based upon Town approval of the Scope and Fee for each task and payment of fees by individual applicants. The total amount for this agreement shall not exceed $1,000,000.00.
G. 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
Email (preferred): [email protected]
H. Availability of Records. Consultant shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Consultant shall make these records available to authorized personnel of the Town at the Consultant offices during business hours upon written request of the Town.
I. Assignability and Subcontracting. The services to be performed under this Agreement are unique and personal to the Consultant. No portion of these services shall be assigned or subcontracted without the written consent of the Town.
J. Independent Contractor. It is understood that the Consultant, 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 Consultant 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. Consultant agrees to testify in any litigation brought regarding the subject of the work to be performed under this Agreement. Consultant 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 Consultant or is based on allegations of Consultant's negligent performance or wrongdoing.
K. Conflict of Interest. Consultant understands that its professional responsibilities are solely to the Town. The Consultant has and shall not obtain any holding or interest within the Town of Los Gatos. Consultant 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, Consultant 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. Consultant shall not knowingly
ITEM NO. 7.
Agreement for Professional Services
Haley & Aldrich
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 Consultant discovers it has employed a person with a direct or indirect interest that would conflict with its performance of this Agreement, Consultant shall promptly notify Town of this employment relationship, and shall, at the Town's sole discretion, sever any such employment relationship.
L. Non-Discrimination. Consultant warrants that it is an equal opportunity employer and shall comply with applicable regulations governing equal employment opportunity. Neither Consultant nor its subconsultants 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
A. Minimum Scope of Insurance:
1. Consultant 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.
2. Consultant 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.
3. Consultant 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.
4. Consultant agrees to have and maintain, for the duration of the contract, professional liability insurance in amounts not less than $1,000,000 which is sufficient to insure Consultant for professional errors or omissions in the performance of the particular scope of work under this agreement.
B. General Liability:
1. 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 Consultant; products and completed operations of Consultant, premises owned or used by the Consultant.
2. The Consultant'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 agents shall be excess of the Consultant's insurance and shall not contribute with it.
3. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or agents.
ITEM NO. 7.
Agreement for Professional Services
Haley & Aldrich
4. Consultant'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.
C. 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 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.
D. Workers’ Compensation. In addition to these policies, Consultant 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, Consultant shall ensure that all subconsultants employed by Consultant 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.
E. Indemnification. The Consultant shall indemnify the Town its elected and appointed officials, employees and agents 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 any act or omissions of the Consultant, or any of the Consultant's officers, employees, or agents or any subconsultant. Consultant shall defend the Town against any such claims.
IV. GENERAL TERMS
A. 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.
B. 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.
C. Mediation. Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation.
The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties. In the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be selected by a blind draw. The cost of mediation shall be borne equally by the parties.
Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.
D. Termination of Agreement. The Town and the Consultant 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 Consultant 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 Consultant an amount that bears the
ITEM NO. 7.
Agreement for Professional Services
Haley & Aldrich
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.
E. Amendment. No modification, waiver, mutual termination, or amendment of this Agreement is effective unless made in writing and signed by the Town and the Consultant.
F. 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
Haley & Aldrich
226 Airport Parkway, Suite 310, San Jose, CA 95110
or personally delivered to Consultant to such address or such other address as Consultant designates in writing to Town.
G. 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.
H. Entire Agreement. This Agreement, including all Exhibits, constitutes the complete and exclusive statement of the Agreement between the Town and Consultant. 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.
ITEM NO. 7.
Agreement for Professional Services
Haley & Aldrich
IN WITNESS WHEREOF, the Town and Consultant have executed this Agreement.
TOWN OF LOS GATOS: HALEY & ALDRICH, INC.:
**signature_155205**
SIGNATURE
Chris Constantin
FULL NAME
Town Manager
TITLE
**date_signed_155205**
DATE SIGNED
**signature_155207**
SIGNATURE
Scott D. Alman
ENTER CONSULTANT SIGNATORY'S NAME
Principal
ENTER CONSULTANT SIGNATORY'S TITLE
**date_signed_155207**
DATE SIGNED
Approved as to form:
**signature_155209**
SIGNATURE
Gabrielle Whelan
FULL NAME
Town Attorney
TITLE
**date_signed_155209**
DATE SIGNED
The execution date is the date on which the last party has signed.
Attachments:
A - Scope and Fee Schedule
ITEM NO. 7.
Agreement for Professional Services
Haley & Aldrich Page 132
ITEM NO. 7.
Exhibit A
Scope and Fee Schedule
ITEM NO. 7.
Haley & Aldrich 26
Statement of Qualifications:
4. Construction Management 7. Geotechnical 8. Land Development Plan Review and Inspection Haley & Aldrich’s Approach to
Land Development Plan Review and Inspection Projects
Haley & Aldrich’s Municipal Services Group emulates a Town Engineering Department and provides plan, map, and record document review services on behalf of local agencies. With the current economic cycle of the housing market, towns, cities, and other oversight agencies are coming under greater pressure to provide plan, map, and record document reviews at an ever-quickening pace. H&A engineers provide thorough plan and map reviews based on entitlements granted by the Town Council and Planning Commission, tentative map conditions of approval, approved CEQA documents and required mitigations, town codes and standards, MRP 3.0 C.3 regulations, Subdivision Map Act and good old common-sense engineering. H&A’s Municipal Group reviews grading plans, improvement plans, traffic control plans, final maps, easements, irrevocable offers of dedication, signing & striping, signal construction, interconnect & timing/synchronization plans. Typical plan and map reviews are scheduled to be completed and comments returned to the Town within ten (10) business days of H&A’s receipt of a complete submittal for the first and second reviews and within five business days for the third review. If more than three reviews are required, the fourth and subsequent reviews are performed on a time and materials basis as an additional service with an additional task order budget required.
Typical development plan reviews include, but are not necessarily limited to, the following:
» Review approved Tentative Map for substantial
conformance with submitted materials;
› Overall grading;
› Numbers of lots;
› General street and utilities layouts and routing;
› Public improvements;
› Entitlement conditions.
» Review Town Council and Planning Commission
Conditions of Approval vs. Submitted materials;
» Review approved CEQA document, special studies, and
Mitigation Monitoring Plan vs. submitted materials;
» Review Traffic Impact Report and mitigations vs.
Submitted materials;
» Review appropriate FIRM vs. Submitted materials
(typically grading plan) to ensure there are no flood
zone elevation issues, LOMA, LOMR requirements
caused by adjustments to the grading plan post TM
approval;
» Review MRP 3.0 requirements vs. Submitted materials
to determine/ensure that all required aspects of the
most current MRP are being met;
» Review VMT and LOS (if included) requirements to
determine/ensure mitigations are being addressed
and met by the proposed improvements;
» Review WELO requirements (if the responsibility of
PW/Engineering) vs. submitted materials to determine
whether water conservation requirements are met by
the proposed improvements;
» Determine/ensure that there are no unapproved
variances of Town standards and requirements
included within the design of the proposed
improvements;
» Typical review of all plan sets, plan sheets, maps, map sheets, calculations, closures, and other submittals
include drafting standards, Town details, appropriate
notes, sheet numbering, approval blocks, signature
blocks, mathematical accuracy, detail numbering and
designations, and conformance with Town drafting
standards pertaining to required “As-Built” drawings
and future GIS layers of constructed public
improvements;
Grading Plan Review:
» Check edge conditions – Life and liability do not stop at the edge of the plan sheet nor the property line.
Determine that there are no negative impacts to
either adjacent property from drainage, or other
encroachment(s) crossing property lines, or rights-ofway. Determine that all potential negative edge conditions are mitigated;
» Check/determine that building pad(s) are at the
accurate elevation, that all slopes are in the correct
direction and meet Town requirements;
» Check/determine positive drainage is accurately
provided for structure and occupant safety, NPDES
MRP requirements, FEMA and HUD requirements, and
that there is no trapped drainage at unimproved low
spots; Check/determine that all proposed earth
retention devices are shown accurately where needed
and are structurally sound with appropriate drainage
provided;
Improvement Plan Review:
» Street widths, slopes, horizontal and vertical curves, curb returns, intersections, conforms, ADA
accessibility, centerline alignment, traffic controls,
signage, lighting, green infrastructure, complete
streets requirements, conditions of approval, and
Town standards and details are met accurately with
Exhibit A good engineering applied to the design;
ITEM NO. 7.
Haley & Aldrich 27
Statement of Qualifications:
4. Construction Management 7. Geotechnical 8. Land Development Plan Review and Inspection » Public and private utilities are provided in accurate dimensions, capacity, slope, etc. to accurately satisfy all utility provider, special district, CAPUC, and town requirements of utility services to the developed
property(ies)
» Hydrology and hydraulic requirements are accurately
and satisfactorily provided to prevent flooding and to
meet all town and NPDES requirements;
» MRP Section C.3 requirements are accurately and
competently addressed and satisfied including SWPPP,
construction and post-construction erosion controls
and best management practices, green infrastructure,
and complete streets;
Record Documents:
» Review/confirm boundary preparation and supporting
documentation;
» Review proposed Final or Parcel map with approved
Tentative map for substantial conformance with
approved map and conditions of approval, CEQA, and
any other entitlement requirements;
» Review/confirm the accuracy of all closure calculations for parcels/lots, blocks, rights-of-way, and easements; » Sign and stamp record documents as technically
correct and approved by the Town’s Consulting
Surveyor (Lynne Filson, LS - H&A).
» Our municipal engineering experience and local
geotechnical knowledge have enabled H&A to develop
a solid, effective, and pragmatic approach to these
services. The key to our approach is the recognition of the needs and concerns of various stakeholders on
every development project. Careful examination of
the needs of each specific development leads to the
preparation and implementation of reasonable and
appropriate scopes of work with well-defined tasks.
H&A has used this approach to successfully manage
and complete award-winning projects for nearly three
decades.
Exhibit A
ITEM NO. 7.
APPENDIX A
Fee Schedule
Exhibit A
ITEM NO. 7.
Standard Fee Schedule
2026 RS1
FEES FOR SERVICES
Fees for services will be based on the time worked on the project by staff personnel plus reimbursable expenses. The fee will be computed as follows.
1. Labor-related fees will be computed based on personnel billing rates in effect at the time the services are performed. Personnel billing rates are subject to revision on, or about, 1 January and 1 July of each year. The hourly rates are fully inclusive of fringe benefits, burden, and fee. Current rates are provided in the table below.
Classification Hourly Rate
Project Support $130
Technician $135
Project Technician $145
Senior Technician $165
Project Controls $175
Staff Professional 1 $185
Staff Professional 2 $195
Project Professional $220
Technical Specialist $230
Project Manager / Senior Technical Specialist $255
Senior Project Manager / Technical Expert $299
Program Manager / Senior Technical Expert $365
Principal $380
Senior Principal $400
2. Pre-trial conferences, depositions, and expert testimony will be billed at one and one-half (1.5) times the rates quoted above.
3. Second and Third Shift, Weekend, and Holiday hours will be billed at $40/hour premium. Second and Third Shifts are those starting between 4 PM and 4 AM.
4. Field visits will be billed at 4-hour minimum; night shifts will be billed at 8-hour minimum. Cancellation of scheduled night shift within 24 hours will be charged the full 8 hours.
5. Direct non-salary expenses will be billed at our cost plus fifteen (15) percent, except for employee vehicle use which will be billed at IRS allowed mileage rates.
6. General project-related expenses such as mobile phone expenses (including mobile app fees); in-house reproduction; printing costs for reports, drawings, and other project records; mail and overnight document delivery; and long-term electronic and paper document storage will be billed as a general communication fee at a rate of four (4) percent of the labor charges.
7. Subcontractors will be billed at our cost plus fifteen (15) percent.
8. Equipment and laboratory testing will be billed at rates listed in the attached Equipment and Laboratory Rate Schedules, as applicable.
Exhibit A
ITEM NO. 7.
Equipment Rate Schedule
2026 RS1
EQUIPMENT RATE SCHEDULE
AIR MONITORING EQUIPMENT Daily Weekly Monthly
Dust Monitor $170 $475 $1,350
Photoionization Detector - 10.6 or 11.7 eV $125 $360 $1,100 FIELD TESTING Daily Weekly Monthly
Double Ring Infiltrometer $500
Field Supplies $30 $120 $480
Guelph Permeameter $200
Inclinometer Readings $275 --- ---
Sand Cone Field Density Kit $85 $255 $765
pH Meter $38 $80 $250
Pile Load Testing (per test) $1,750
Plate Load Tester (per day) $500
Pit Box Test (per day) $500
Slug Test Kit (per day) $375
Wood Pile Load Testing (per test) $500
SAMPLING EQUIPMENT Daily Weekly Monthly
Groundwater Sampling Bundle with Pump $350 $1,100 $3,100 Rotohammer Drill $100 $400
Soil Sampling or Tank Pull Equipment Bundle $150 $350 $1,050 Soil Vapor Sampling Bundle $400 $1,400 $2,600
WATER LEVEL METERS AND INTERFACE PROBES Daily Weekly Monthly Barologger $60 $177 $533
Levelogger $60 $177 $533
Oil/Water Interface Probe $80 $220 $650
Water Level Indicator $55 $145 $295
GEOTECHNICAL INSTRUMENTATION Daily Weekly Monthly
Cone Penetrometer $20 $80 $240
Dynamic Cone Penetrometer $175
Electronic Readout Box or Datalogger $50 $150 $350
In-Place Inclinometer Rental --- --- $1,250
Modem --- --- $250
Nuclear Density Gauge $125 $400 $1,200
Power System - Battery --- $25 $75
Power System - Solar ---- $60 $180
Seismograph - Manual $80 $245 $775
Seismograph - Remote Units $100 $295 $875
Vibration and Sound Monitoring Station $125 $345 $975
Exhibit A
ITEM NO. 7.
Equipment Rate Schedule
2026 RS1
EQUIPMENT RATE SCHEDULE (continued)
UAS DATA ACQUISITION & PROCESSING Daily Weekly Monthly
UAS Digital Imagery Equipment $200 $800 ---
UAS Digital Imagery w/Ground Control Package
(UAS + GNSS) $300 $1,200 ---
UAS Hyperspectral Equipment $300 $1,200 ---
UAS Hyperspectral w/Ground Control Package
(UAS w/HS + GNSS) $400 $1,600 ---
LiDAR SCANNING & PROCESSING Daily Weekly Monthly
LiDAR Scanning Equipment (Terrestrial & Aerial) $800 $3,200 --- LiDAR Equipment w/Ground Control Package
(LiDAR + GNSS) $1,000 $4,000 ---
MISCELLANEOUS Daily Weekly Monthly
Decontamination Kit (each) $50 --- ---
Field Truck (including fuel) $158 $630 $2,200
Generator $90 $220 $690
GeoTech Sample Jars 16 oz. (per box) $25 --- ---
GPS Unit $200 $800 $2,400
Harness with Restraint Lanyard $50 $175 $500
Motorola CP200d Radio (pair) --- $35 $140
Personal Protective Equipment - Level C (per person) $50 --- --- Saximeter II $40 $160 $480
Sound Level Meter $60 $240 $720
Exhibit A
ITEM NO. 7.
Laboratory Rate Schedule
2026 RS1
LABORATORY RATE SCHEDULE
SOIL CLASSIFICATION AND INDEX TESTS Unit Price
Atterberg Limits - 1 Point $300
Atterberg Limits - 3 Point $435
Grain Size - Hydrometer and Sieve Analysis $300
Grain Size - 200 Wash $150
Grain Size- Sieve Analysis (Standard Sample) $175
Grain Size - Sieve Analysis (Bulk Sample) $225
Grain Size - Hydrometer $250
Water Content $45
Organic Content $200
Specific Gravity $150
Visual Classification $15
SOIL MOISTURE-DENSITY TESTS Unit Price
Bulk Density $150
California Bearing Ratio (CBR) $1,000
Proctor - 1 Point $400
Proctor - 4 Point $550
Proctor - 4 Point (Cohesive Soil) $600
SOIL CONSOLIDATION AND STRENGTH TESTS Unit Price
Consolidation - Constant Rate of Strain (CRS) $1,000
Consolidation - Incremental $750
Unconfined Compression $150
Direct Simple Shear (DSS) $1,000
Cyclic Direct Simple Shear (CDSS) $2,100
Triaxial Compression - Isotropic Consolidation $750
Triaxial Compression - Ko/anisotropic Consolidation $1,200 Triaxial Compression - Unconsolidated $450
SURCHARGE RATES Unit Price
Atterberg Limits Dry Prep $20
Atterberg Limits Organic Classification $55
Sample Preparation $200
Triaxial High Pressure (over 100 psi) $165
Tube Cut (per cut) $40
Tube Extrusion $165
Additional H&A Laboratory analyses, pricing, and rush rates available upon request.
Exhibit A
ITEM NO. 7.
PREPARED BY: James Watson
Senior Civil Engineer – Land Development
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Administrative Services Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/15/2026
ITEM NO: 8
DATE: September 15, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute an Amendment to the Agreement for Consultant Services with CSG Consultants, Inc. to Extend the Term and Increase the Not-To-Exceed Amount
RECOMMENDATION: Authorize the Town Manager to execute a first amendment to the Agreement for Consultant Services with CSG Consultants, Inc. (“CSG”) to extend the period of performance to June 30, 2030 and increase the not-to-exceed value to $1,000,000.
FISCAL IMPACT:
The proposed First Amendment (Attachment 1) increases the maximum authorized agreement capacity by $500,000, from $500,000 to $1,000,000. The increase provides additional contract capacity and does not appropriate any Town funds or guarantee any minimum amount of work.
Consultant services will be authorized on an as-needed basis and only when applicant funding and sufficient budgetary appropriation are available.
As this is a pass-through agreement, consultant costs (Account Code 1115999-68416) will be recovered from land development applicants through developer deposits and applicable development-related fees (Account Code 1115999-48416). Staff time associated with administering and managing the consultant services will also be recovered from developers through the applicable cost-recovery mechanism (Account Code 1115202-44619). No additional appropriation or budget adjustment is required.
STRATEGIC PRIORITY:
This item addresses the Town’s Strategic Priority to preserve the Town’s small-town charm and provide a range of housing opportunities and historic neighborhoods, while diligently
ITEM NO. 8.
PAGE 2 OF 3
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the Agreement for Consultant Services with CSG Consultants, Inc.
DATE: September 15, 2026
maintaining and implementing the Housing Element. (Goal: Community Character). By providing additional capacity for timely and thorough review of development plans and private construction activities, the recommendation will help ensure that development projects comply with Town standards and that adopted conditions of approval are constructed to the highest standards. This approach supports responsible development while helping preserve the Town’s community character and quality of life.
BACKGROUND:
The Town’s adopted 2023-2031 Housing Element identifies a Regional Housing Needs Allocation (RHNA) of 1,993 housing units for the 2023-2031 eight-year planning period. The Town has experienced a significant increase in land development activity associated with the implementation of the Housing Element and other State housing laws. Most recently, a single entitled project accounted for 451 proposed new dwelling units.
Once a project is entitled, the developer must submit building permit applications and various other documents required by the project’s conditions of approval. The Parks and Public Works (“PPW”) Department is responsible for reviewing these plans and documents, issuing permits, and inspecting construction activities to ensure compliance with the conditions of approval and all applicable federal, state, and local regulations. The increased volume and complexity of development activity have created a greater demand for PPW’s land development review and inspection resources.
To supplement its in-house resources, PPW issued a Request for Qualifications (RFQ) in 2023 to establish an on-call consultant list for Engineering and Design Support Services. The RFQ solicited firms across 12 disciplines, including “Land Development Plan Review and Inspection Services.” Firms with experience in land development plan review and construction inspection were invited to submit their qualifications for consideration. Responses were received from several firms and evaluated based on qualifications, experience, technical expertise, staffing resources, responsiveness, and familiarity with California municipal requirements.
On February 20, 2024, the Town Council approved the On-Call Consultants List for Engineering and Design Support Services.
On February 18, 2025, the Town Council authorized the Town Manager to execute a passthrough agreement (Attachment 2) with the highest-ranked firm on the on-call list, CSG Consultants, Inc. (“CSG”). The Town subsequently entered into an agreement with CSG to provide PPW with land development document review and inspection services, with a not-toexceed amount of $500,000 set to expire on June 30, 2028. This current amendment does not materially expand the previously approved scope of services. As of August 2026, the $500,000 authorized under the existing agreement was expended.
ITEM NO. 8.
PAGE 3 OF 3
SUBJECT: Authorize the Town Manager to Execute a First Amendment to the Agreement for Consultant Services with CSG Consultants, Inc.
DATE: September 15, 2026
DISCUSSION:
Workloads associated with development applications, building permits, and private construction activities can fluctuate significantly from year to year. In recent years, the Town has seen private development projects of increasing complexity due to their high density and multiple stories. Managing the construction phase of these projects requires knowledge of advanced engineering and construction principles that are outside the scope of work of Town staff. Utilizing qualified on-call consultants provides the Town with the expertise needed to ensure the Town’s interests are protected.
The proposed amendment to the agreement with CSG includes hourly rates and defines the terms and conditions under which services may be authorized by the Town. The Agreement does not guarantee any minimum amount of work or compensation. Services will be authorized through discrete tasks only after the Town confirms that sufficient applicant-funded deposits or other legally authorized applicant funds are available to pay for the services. The Agreement provides that the Town has no obligation to pay the Consultant for services unless sufficient applicant-funded deposits or other legally authorized applicant funds are available.
CONCLUSION:
Amending the consultant services agreement with CSG for on-call engineering services will enable the Town to quickly and efficiently respond when larger development projects receive entitlements and advance into the construction phase. The amendment will provide the Town with additional capacity to review construction-phase documents and support related inspection activities as needed.
COORDINATION:
This staff report was coordinated with the Administrative Services Department, Town Attorney’s Office, and the Town Manager’s Office.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. First Amendment
2. Original Agreement
ITEM NO. 8.
AMENDMENT TO AGREEMENT
Amendment to Agreement
CSG Consultants, Inc.
This FIRST AMENDMENT TO AGREEMENT amends that certain agreement titled Agreement for Consultant Services dated February 18, 2025, made by and between the Town of Los Gatos, ("Town,") and CSG Consultants, Inc. (“Consultant”), a Corporation and whose address is 550 Pilgrim Drive, Foster City, CA 94404.
RECITALS
A. Town and Consultant entered into an Agreement for Consultant Services on February 18, 2025 (“Agreement”).
B. The Parties desire to amend the Agreement in order to extend the term and time of performance and increase compensation.
AMENDMENT
A. Section 2.2 Term and Time of Performance is replaced and amended to read: This contract will remain in effect February 18, 2025 through June 30, 2030.
B. Section 2.6 Compensation is replaced and amended to read: Compensation for the Consultant's professional services shall be paid at the established hourly rates, as set forth in the Fee Schedule, which is attached hereto.
Payment shall be based upon Town approval of the Scope and Fee for each task and payment of fees by individual applicants. The total amount for this agreement shall not exceed $1,000,000.00.
C. All other terms and conditions of the Agreement remain in full force and effect.
Attachments:
A - Fee Schedule
Attachment 1 Page 144
ITEM NO. 8.
TOWN OF LOS GATOS CSG CONSULTANTS, INC.:
**signature_155228**
SIGNATURE
Chris Constantin
FULL NAME
Town Manager
TITLE
**date_signed_155228**
DATE SIGNED
**signature_155227**
SIGNATURE
Cyrus Kianpour
CONTRACTOR SIGNATORY'S FULL NAME
President
CONTRACTOR SIGNATORY'S TITLE
**date_signed_155227**
DATE SIGNED
Approved as to form:
**signature_155225**
SIGNATURE
Gabrielle Whelan
FULL NAME
Town Attorney
TITLE
**date_signed_155225**
DATE SIGNED
The execution date is the date on which the last party has signed.
ITEM NO. 8.
Exhibits List
A - Fee Schedule
ITEM NO. 8.
Exhibit A
Fee Schedule
ITEM NO. 8.
550 Pilgrim Drive
Foster City, CA 94404
Phone: 650.522.2500
Fax: 650.522.2599
www.csgengr.com
FOSTER CITY PLEASANTON SAN JOSE SACRAMENTO NEWMAN PASO ROBLES IRVINE September 9, 2026
James Watson, PE
Senior Civil Engineer – Land Development
Town of Los Gatos
41 Miles Avenue
Los Gatos, CA 95030
Re: Town of Los Gatos Pass Through Amendment
Dear Mr. Watson,
CSG Consultants, Inc. (CSG) is pleased to present this proposal to the Town of Los Gatos (Town) to provide pass-through engineering services for large, complex projects in support of Town staff. CSG will provide Senior Engineer and Senior Project Manager levels to perform the work requested by the Town, which may include:
Review and provide comments on encroachment permit plans/applications for public improvements. Review and provide comments on grading permit plans/applications. Review and provide comments on building permit plans/applications related to public works. Other duties as assigned.
CSG will provide Senior Engineer and Senior Project Manager levels, as needed to support the Town on large, complex projects. Services may be performed on-site or off-site based on the needs of each assignment.
CSG’s proposed staff will perform work as described below, as requested by the Town:
1.0 – Pass Through Engineering Services
Provide customer service to address inquiries related to the Public Works Department for applications and engineering requirements.
Review encroachment permits.
Assist Public Works related code enforcement issues, as needed. Respond to citizen complaints regarding construction impacts and regulations. Perform off-site review and approval of applications for new development, including grading permit compliance with Town codes and NPDES requirements.
Perform other duties as assigned.
As a token of appreciation to the Town as a long-term client, CSG is pleased to offer this service at the Senior Engineer rate of $250 and Senior Project Manager rate of $240 per hour.
CSG looks forward to working with the Town to continue providing engineering services to meet the Town’s needs. Should you have any questions, please feel free to contact me at (408) 504-8234 or by email at [email protected].
Sincerely,
Hatem Ahmed, PE, PMP
Vice President
Cc: Sandra Meditch, PE – Principal Engineer
ITEM NO. 8.
Docusign Envelope ID: D19FOAC8- C715- 4CBB- A23D- 63A882728B31
AGREEMENT FOR CONSULTANT SERVICES
PREAMBLE
THIS AGREEMENT is dated for identification on February 18, 2025 by and between TOWN OF LOS GATOS, a California municipal corporation, (" Town") CSG Consultants, Inc., (" Consultant"), identified as an C Corporation and whose address is 550 Pilgrim Dr, Foster City, CA 94404. This Agreement is made with reference to the following facts.
I. RECITALS
1. 1 The Town desires to engage Consultant to provide plan review and inspection services.
1. 2 The Consultant represents and affirms that it is willing to perform the desired work pursuant to this Agreement.
1. 3 Consultant warrants it possesses the distinct professional skills, qualifications, experience, and resources necessary to timely perform the services described in this Agreement. Consultant acknowledges Town has relied upon these warranties to retain Consultant.
II. AGREEMENTS
2. 1 Scope of Services. Consultant shall provide services as described in that certain Proposal sent to the Town on June 26, 2024, which is hereby incorporated by reference and attached as Exhibit A.
2. 2 Term and Time of Performance. This contract will remain in effect February 18, 2025 through June 30, 2028.
2. 3 Compliance with Laws. The Consultant shall comply with all applicable laws, codes, ordinances, and regulations of governing federal, state and local laws. Consultant represents and warrants to Town that it has all licenses, permits, qualifications and approvals of whatsoever nature which are legally required for Consultant to practice its profession. Consultant 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. Consultant shall be responsible for employing or engaging all persons necessary to perform the services under this Agreement.
2. 5 Information/ Report Handling. All documents furnished to Consultant by the Town and all reports and supportive data prepared by the Consultant under this Agreement are the Town' s property and shall be delivered to the Town upon the completion of Consultant' s services or at the Town' s written request. All reports, information, data, and exhibits prepared or assembled by Consultant in connection with the performance of its services pursuant to this Agreement are confidential until released by the Town to the public, and the Consultant shall
Agreement for Consultant Services
CSG Consultants, Inc. Attachment 2
ITEM NO. 8.
Docusign Envelope ID: D19FOAC8- C715- 4CBB- A23D- 63A882728B31 not make any of the these documents or information available to any individual or organization not employed by the Consultant or the Town without the written consent of the Town before such release. The Town acknowledges that the reports to be prepared by the Consultant 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 Consultant in connection with other projects shall be solely at Town' s risk, unless Consultant expressly consents to such use in writing. Town further agrees that it will not appropriate any methodology or technique of Consultant which is and has been confirmed in writing by Consultant to be a trade secret of Consultant.
2. 6 Compensation. Compensation for the Consultant' s professional services shall be paid at the established hourly rates, as set forth in the Fee Schedule, which is attached hereto.
Payment shall be based upon Town approval ofthe Scope and Fee for each task and payment of fees by individual applicants. The total amount for this agreement shall not exceed $ 500, 000.
2. 7 BiLLZ. 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
Email ( preferred): AP(@losgatosca. gov
2. 8 Availability of Records. Consultant shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Consultant shall make these records available to authorized personnel of the Town at the Consultant' s 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 Consultant. 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 Consultant, 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