ITEM NO. 4.
30 Institutional Biosafety Committee (IBC) or other Institutional Review Entity (IRE) whose role is the review of research involving agents covered by the Policy.
Use of the select agents or other potential pandemic pathogens as defined by the Policy must be registered with the Centers for Disease Control and Prevention or USDA as directed under the Select Agent Regulations. Documentation demonstrating appropriate registration of the agent must be submitted to USDA prior to the issuance of the award.
In the rare cases where USDA funds research that involves the creation, transfer, or use of enhanced potential pandemic pathogens, then special award conditions will be applied to ensure adequate oversite by the cognizant USDA Agency and require the establishment of a risk mitigation plan for the research that must be reviewed and approved by the IRE and USDA, as well as the requirement of maintenance of records of institutional review of the research and risk mitigation activities for three years after completion of the project.
The recipient must establish an Institutional Contact for Dual Use Research (ICDUR), as required by the Policy, to serve as an internal resource for issues regarding compliance with and implementation of the requirements for the oversight of research that falls within the scope of the Policy. The recipient must maintain records of institutional DURC reviews and completed risk mitigation plans for the term of the research grant or contract plus three years after its completion, but no less than eight years, unless a shorter period is required by law or regulation.
“Dangerous gain-of-function” research means scientific research on an infectious agent or toxin with the potential to cause disease by enhancing its pathogenicity or increasing its transmissibility. Covered research activities are those that could result in significant societal consequences and that seek or achieve one or more of the following outcomes:
1. Enhancing the harmful consequences of the agent or toxin;
2. Disrupting beneficial immunological response or the effectiveness of an immunization against the agent or toxin;
3. Conferring to the agent or toxin resistance to clinically or agriculturally useful prophylactic or therapeutic interventions against that agent or toxin or facilitating their ability to evade detection methodologies;
4. Increasing stability, transmissibility, or the ability to disseminate the agent or toxin;
5. Altering the host range or tropism of the agent or toxin;
6. Enhancing the susceptibility of a human host population to the agent or toxin; or
7. Generating or reconstituting an eradicated or extinct agent or toxin. “Dual use research of concern” means life sciences research that, based on current understanding, can be reasonably anticipated to provide knowledge, information, products, or technologies that could be directly misapplied to pose a significant threat with broad potential consequences to public health and safety, agricultural crops and other plants, animals, the environment, materiel, or national security.
ITEM NO. 4.
31 “Institutional Contact for Dual Use Research” (ICDUR) means an individual designated by the institution to serve as an institutional point of contact for questions regarding compliance with and implementation of the requirements for the oversight of DURC as well as the liaison (as necessary) between the institution and the relevant funding agency. “Life sciences” means living organisms (e.g., microbes, human beings, animals, and plants) and their products, including all disciplines and methodologies of biology such as aerobiology, agricultural science, plant science, animal science, bioinformatics, genomics, proteomics, microbiology, synthetic biology, virology, molecular biology, environmental science, public health, modeling, engineering of living systems, and all applications of the biological sciences.
The term is meant to encompass the diverse approaches to understanding life at the level of ecosystems, populations, organisms, organs, tissues, cells, and molecules.
10.12 Export Control
By accepting this Federal award, the recipient agrees to comply with all applicable laws and regulations regarding export-controlled items, including the Export Administration Regulations (EAR) issued by the Department of Commerce. The recipient shall establish and maintain effective export compliance procedures throughout the performance of the Federal award. At a minimum, these export compliance procedures must include adequate controls of physical, verbal, visual, and electronic access to export-controlled items, including by foreign nationals.
If export-controlled items are used to conduct research or are generated as part of the research efforts, the export control laws and regulations apply to the controlled items.
The recipient shall control access to all export-controlled items that it possesses or that comes into its possession in performance of this Federal award, to ensure that access to, or release of, such items are restricted, or licensed, as required by applicable federal statutes, Executive Orders, and/or regulations, including the EAR.
To the extent the recipient wishes to provide foreign nationals with access to export-controlled items, the recipient shall be responsible for obtaining any necessary licenses, including licenses required under the EAR for deemed exports or deemed re-exports.
Compliance with this section will not satisfy any legal obligations the recipient may have regarding items that may be subject to export controls administered by other agencies such as the Department of State, which has jurisdiction over exports of munitions items subject to the International Traffic in Arms Regulations (22 CFR part 120 through 22 CFR part 130), including releases of such items to foreign nationals.
Although openly publishable literature is not subject to export control, USDA’s policy is to oppose interaction with terrorist and embargoed countries unless there is specific U.S.
Government policy support for sponsorship for such interactions.
The recipient shall include this clause, including this paragraph, in all lower-tier transactions (subawards, contracts awarded under the Federal award, etc.) under this Federal award that may involve access to export-controlled items.
“Export-controlled information” means information (which may include technology, technical data, assistance or software), the export (including, as applicable, transfer to foreign nationals
ITEM NO. 4.
32 within the United States) of which is controlled under the “Export Administration Regulations” (maintained by the U.S. Department of Commerce), the “International Traffic in Arms Regulations” (maintained by the U.S. Department of State), “10 CFR part 810, Assistance to Foreign Atomic Energy Activities” regulations (maintained by the U.S. Department of Energy), or various trade and economic sanctions (maintained by the U.S. Department of Treasury’s Office of Foreign Assets Control).
“Export-controlled items” means items (e.g., commodities, software, or technology), that are subject to the EAR (15 CFR part 730 through 15 CFR part 774), implemented by the Department of Commerce’s Bureau of Industry and Security. These are generally known as “dual-use” items, items with a military and commercial application. “Deemed export/re-export” means the release of export-controlled items (specifically, technology or source code) to a foreign national in the U.S. Such release is “deemed” to be an export to the home country of the foreign national (15 CFR 734.2). A release may take the form of visual inspection, oral exchange of information, or the application abroad of knowledge or technical experience acquired in the United States. If such a release occurs abroad, it is considered a deemed re-export to the foreign national’s home country. Licenses from Department of Commerce may be required for deemed exports or re-exports.
Transfer can occur by the transmission of technology/items by physical or electronic means such as:
1. Shipping (by land, sea, or air) of export-controlled information (ECI); hand-carrying on foreign travel; or performing processes or services in a foreign country that convey expertise;
2. Sales, loans, or donations to foreign persons, including associated technical manuals;
3. Consulting with or training foreign persons;
4. Publications, presentations, and participation in international exchange programs or conferences;
5. Mail, faxes, emails, postings/data transfer on the Internet, or communication through telephone calls;
6. Cooperative Research and Development Agreements (CRADA), patent applications, non-disclosure agreements, procurement specifications, Memoranda of Agreement/Understanding, and contracting instruments; and
7. Sharing export-controlled technology/information with foreign persons in the United States, including visits or assignments of foreign persons to USDA facilities.
If a violation occurs or one is thought to have occurred, self-disclosure is required to USDA and the appropriate export control jurisdictional authority. Each recipient has or should have an escalation process for such matters. Depending on circumstances and the significance of the violation, penalties can include:
1. Fines for the individual and/or legal entity contractor;
ITEM NO. 4.
33 2. Denial of export privileges for a specified period of time or indefinitely;
3. Loss of Programs/Projects;
4. Loss of reputation;
5. Debarment, seizure, and/or forfeiture; or
6. Imprisonment.
10.13 Limitation on Use of Funds for Research Involving Human Subjects By accepting this Federal award, the recipient agrees that no work involving human subjects may be undertaken, conducted, or costs incurred and/or charged to this Federal award for human subject’s research, until the appropriate documentation is approved in writing by USDA. This documentation may include:
1. Documentation establishing approval of the project by an institutional review board (IRB) approved for federal-wide use under Department of Health and Human Services guidelines;
2. Documentation to support an exemption for the project;
3. Documentation to support deferral for an exemption or IRB review; or
4. Documentation of IRB approval of any modification to a prior approved protocol or to an informed consent form.
5. The recipient shall obtain and document a legally sufficient informed consent from each human subject involved. No such informed consent shall include any exculpatory language through which the subject is made to waive, or to appear to waive, any of his or her legal rights, including any release of the recipient or its agents from liability for negligence.
If approved, the recipient agrees to comply with U.S. Department of Health and Human Services’ regulations regarding human subjects, appearing in 45 CFR part 46 (as amended) and USDA regulations appearing in 7 CFR part 1c͘ The recipient and any subrecipient, as appropriate, must maintain appropriate policies and procedures for the protection of human subjects. The recipient will provide assurance that the risks do not outweigh either potential benefits to the subjects or the expected value of the knowledge sought and selection of subject or groups of subjects shall be made without regard to sex, race, color, religion, or national origin unless these characteristics are factors to be studied.
The protection of human subjects (the “Common Rule”) as codified in 45 CFR part 46, subpart A, defines a human subject as a living individual about whom an investigator conducting research obtains (1) information or biospecimens through intervention or interaction with the individual (e.g., surveys and focus groups), and uses, studies, or analyzes the information or biospecimens or (2) uses, studies, analyzes, or generates identifiable private information or identifiable biospecimens.
ITEM NO. 4.
34 11.0 RECORDS MANAGEMENT
11.1 Record Retention
The recipient must retain all records relating to the Federal award for three years after the submission of the final Federal Financial Report (SF-425). If any litigation, claim, or audit is started before the expiration of the 3-year period, records must be retained until all litigation, claims, or audit findings involving the records have been resolved and final action taken, to include when appeal rights have lapsed and no appeal was filed. See 2 CFR 200.334 for exceptions and qualifications to the retention requirement and period for other types of Federal-related records, including property records.
11.2 Access to Records
As described in 2 CFR 200.337, the USDA awarding agency, Inspectors General, the Comptroller General of the United States, and the pass-through entity, or any of their authorized representatives, must have right of access to any documents, papers, or records of recipients and subrecipients which are pertinent to the Federal award, to make audits, examinations, excerpts, and transcripts. Compliance with this requirement includes timely and reasonable access to the recipient’s and subrecipient’s personnel for interviews and discussion related to such documents.
11.3 Licensing and Copyright
The Federal Government reserves a royalty-free, nonexclusive and irrevocable license to reproduce, make public or otherwise use, and to authorize others to use for federal purposes:
1. The copyright in all information dissemination products, as defined at 2 CFR 400.0, developed under an award; and
2. Any rights of copyright to which the recipient purchases ownership under an award.
12.0 OTHER APPLICABLE TERMS AND CONDITIONS
12.1 Animal Welfare Act
The recipient agrees to comply with the Animal Welfare Act (7 U.S.C. § 54) and corresponding regulations in 9 CFR part 1 through 9 CFR part 4 pertaining to the care, handling, and treatment of vertebrate animals held or used for research.
12.2 Civil Rights Obligations/Nondiscrimination
The recipient must comply, and certifies that it will comply, with all applicable Federal antidiscrimination laws, regulations, and policies for the duration of the Federal award, to include the following without limitation:
1. Title IX of the Education Amendments of 1972, as amended, 20 U.S.C. §§ 1681 et seq.;
2. Presidential Executive Order 14168, Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government;
3. Title VI of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000d et seq., and applicable implementing regulations at 7 CFR part 15, subpart A;
ITEM NO. 4.
35 4. Presidential Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity; and
5. Age Discrimination Act of 1975 (42 U.S.C. §§ 6101 et seq.).
By accepting the award, the recipient certifies that it does not, and will not during the term of the award, operate any programs that advance or promote Diversity, Equity, and Inclusion in violation of Federal anti-discrimination laws. The recipient must include the provisions of this clause in all subawards and contracts awarded under the Federal award.
The above requirements are conditions of payment that go to the essence of the Federal award, and they are therefore material terms of the Federal award. The recipient acknowledges that this certification reflects a change in the government’s position regarding the materiality of the foregoing requirements and therefore any prior payment of similar claims does not reflect the materiality of the foregoing requirements to this Federal award. Payments under the award are predicated on compliance with the above requirements, and therefore the recipient is not eligible for funding under the award or to retain any funding under the award absent compliance with the above requirements. USDA reserves the right to terminate Federal financial assistance awards and recover all funds if the recipient, during the term of this award, operates any program in violation of Federal anti-discrimination laws.
If the recipient either fails to comply with above requirements, or makes a knowing false statement related to compliance with the above requirements and/or eligibility for the Federal award, the recipient may be subject to liability under the False Claims Act, 31 U.S.C. § 3729, and/or criminal liability, including under 18 U.S.C. § 287 and 18 U.S.C. § 1001.
For more information about USDA Civil Rights requirements, please visit https://www.usda.gov/about-usda/general-information/staff-offices/office-assistant-secretarycivil-rights.
12.3 International Travel – Fly America Act
All Federal government financed international air transportation is required by 49 U.S.C. § 40118, commonly referred to as the "Fly America Act," to use U.S. air carrier service for all air travel and cargo transportation services. One exception to this requirement is transportation provided under a bilateral or multilateral air transport agreement, to which the U.S. government and the government of a foreign country are parties, and which the Department of Transportation has determined meets the requirements of the Fly America Act.
Current “Open Skies Agreements” that are in effect can be found here:
https://www.gsa.gov/policy- regulations/policy/travel-management-policy/fly-americaact.
It is the recipient’s responsibility for making determinations and documenting the decision as to whether an exemption to this requirement applies.
Exceptions vary depending on the direction of travel and are outlined in 41 CFR 301-
10.135 and 41 CFR 301-10.136.
ITEM NO. 4.
36 12.4 Prohibition on Congressional Interest in Agreements Pursuant to 41 U.S.C. § 6306, no Member of, or Delegate to, Congress shall be admitted to any share or part of this agreement, or any benefit that may arise therefrom, either directly or indirectly, except as expressly provided by law.
12.5 Lobbying Prohibitions
In accordance with 31 U.S.C. § 1352, the recipient is required to abide by the policy and procedures codified at 22 CFR part 138. By accepting the Federal award, the recipient agrees that:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the recipient, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the recipient shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
3. The recipient shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31 U.S.C. § 1352.
Any person who fails to file the required certification shall be subject to a civil penalty of not less than $25,132 and not more than $251,322 for each such failure.
12.6 Trafficking in Persons
USDA awarding agencies are authorized to terminate a Federal award or take remedial actions if a private entity receiving funds under a Federal award engages in trafficking in persons. In compliance with 2 CFR 175.105(a), USDA has adopted the award term—Trafficking in Persons (Appendix A to 2 CFR part 175):
Trafficking in Persons
1. Provisions applicable to a recipient that is a private entity.
ITEM NO. 4.
37 a. Under this award, the recipient, its employees, subrecipients under this award, and subrecipient's employees must not engage in:
i. Severe forms of trafficking in persons;
ii. The procurement of a commercial sex act during the period of time that this award or any subaward is in effect;
iii. The use of forced labor in the performance of this award or any subaward; or iv. Acts that directly support or advance trafficking in persons, including the following acts:
(1) Destroying, concealing, removing, confiscating, or otherwise denying an employee access to that employee's identity or immigration documents;
(2) Failing to provide return transportation or pay for return transportation costs to an employee from a country outside the United States to the country from which the employee was recruited upon the end of employment if requested by the employee, unless:
(a) Exempted from the requirement to provide or pay for such return transportation by the Federal department or agency providing or entering into the grant or cooperative agreement; or
(b) The employee is a victim of human trafficking seeking victim services or legal redress in the country of employment or a witness in a human trafficking enforcement action;
(3) Soliciting a person for the purpose of employment, or offering employment, by means of materially false or fraudulent pretenses, representations, or promises regarding that employment; (4) Charging recruited employees a placement or recruitment fee; or (5) Providing or arranging housing that fails to meet the host country's housing and safety standards.
b. The Federal agency may unilaterally terminate this award or take any remedial actions authorized by 22 U.S.C. 7104b(c), without penalty, if any private entity under this award:
i. Is determined to have violated a prohibition in paragraph 1.a. of this appendix; or
ii. Has an employee that is determined to have violated a prohibition in paragraph
1.a. of this this appendix through conduct that is either:
(1) Associated with the performance under this award; or
ITEM NO. 4.
38 (2) Imputed to the recipient or the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, “OMB Guidelines to Agencies on Government-wide Debarment and Suspension (Nonprocurement),” as implemented by our agency at 2 CFR 417.
2. Provision applicable to a recipient other than a private entity. a. The Federal agency may unilaterally terminate this award or take any remedial actions authorized by 22 U.S.C. 7104b(c), without penalty, if a subrecipient that is a private entity under this award:
i. Is determined to have violated a prohibition in paragraph 1.a. of this appendix; or
ii. Has an employee that is determined to have violated a prohibition in paragraph
1.a. of this appendix through conduct that is either:
(1) Associated with the performance under this award; or (2) Imputed to the subrecipient using the standards and due process for imputing the conduct of an individual to an organization that are provided in 2 CFR part 180, “OMB Guidelines to Agencies on Government-wide Debarment and Suspension (Nonprocurement),” as implemented by our agency at 2 CFR 417.
3. Provisions applicable to any recipient.
a. The recipient must inform the Federal agency and the Inspector General of the Federal agency immediately of any information you receive from any source alleging a violation of a prohibition in paragraph 1.a. of this appendix. b. The Federal agency's right to unilaterally terminate this award as described in paragraphs 1.b. or 2.a. of this appendix:
i. Implements the requirements of 22 U.S.C. 78, and
ii. Is in addition to all other remedies for noncompliance that are available to the Federal agency under this award.
(1) The recipient must include the requirements of paragraph 1.a. of this award term in any subaward it makes to a private entity. (2) If applicable, the recipient must also comply with the compliance plan and certification requirements in 2 CFR 175.105(b).
4. Definitions. For purposes of this award term:
“Employee” means either:
a. An individual employed by the recipient or a subrecipient who is engaged in the performance of the project or program under this award; or
ITEM NO. 4.
39 b. Another person engaged in the performance of the project or program under this award and not compensated by the recipient including, but not limited to, a volunteer or individual whose services are contributed by a third party as an inkind contribution toward cost sharing requirements. “Private entity” means any entity, including for-profit organizations, nonprofit organizations, institutions of higher education, and hospitals. The term does not include foreign public entities, Indian Tribes, local governments, or states as defined in 2 CFR 200.1.
The terms “severe forms of trafficking in persons,” “commercial sex act,” “sex trafficking,” “Abuse or threatened abuse of law or legal process,” “coercion,” “debt bondage,” and “involuntary servitude” have the meanings given at section 103 of the TVPA, as amended (22 U.S.C. 7102).
In addition, for awards related to research and development (R&D) or science and technology (S&T), the recipient certifies that they are not party to utilizing forced labor or partnering with non-parties to this agreement who are party to utilizing forced labor.
12.7 Recipient Integrity and Performance
In compliance with Appendix XII to 2 CFR part 200, if the total value of the recipient’s currently active grants, cooperative agreements, and procurement contracts from all Federal awarding agencies exceeds $10,000,000 for any period of time during the period of performance of the Federal award, the recipient must comply with the requirements set forth in the government-wide Award Term and Condition of Recipient Integrity and Performance Matters:
Reporting of Matters Related to Recipient Integrity and Performance
1. General Reporting Requirement.
a. If the total value of your active grants, cooperative agreements, and procurement contracts from all Federal agencies exceeds $10,000,000 for any period of time during the period of performance of this Federal award, then you as the recipient must ensure the information available in the responsibility/qualification records through the System for Award Management (SAM.gov), about civil, criminal, or administrative proceedings described in paragraph 2. of this award term is current and complete. This is a statutory requirement under section 872 of Public Law 110-417, as amended (41 U.S.C. 2313). As required by section 3010 of Public Law 111-212, all information posted in responsibility/qualification records in SAM.gov on or after April 15, 2011 (except past performance reviews required for Federal procurement contracts) will be publicly available.
2. Proceedings About Which You Must Report.
a. You must submit the required information about each proceeding that— i. Is in connection with the award or performance of a grant, cooperative agreement, or procurement contract from the Federal Government;
ITEM NO. 4.
40 b. Reached its final disposition during the most recent 5-year period; and c. Is one of the following—
i. A criminal proceeding that resulted in a conviction; ii. A civil proceeding that resulted in a finding of fault and liability and payment of a monetary fine, penalty, reimbursement, restitution, or damages of $5,000 or more;
iii. An administrative proceeding that resulted in a finding of fault and liability and your payment of either a monetary fine or penalty of $5,000 or more or reimbursement, restitution, or damages in excess of $100,000; or iv. Any other criminal, civil, or administrative proceeding if— (1) It could have led to an outcome described in paragraph 2.a.i. through iii.;
(2) It had a different disposition arrived at by consent or compromise with an acknowledgment of fault on your part; and
(3) The requirement in this award term to disclose information about the proceeding does not conflict with applicable laws and regulations.
3. Reporting Procedures. Enter the required information in SAM.gov for each proceeding described in paragraph 2. of this award term. You do not need to submit the information a second time under grants and cooperative agreements that you received if you already provided the information in SAM.gov because you were required to do so under Federal procurement contracts that you were awarded.
4. Reporting Frequency. During any period of time when you are subject to the requirement in paragraph 1. of this award term, you must report proceedings information in SAM.gov for the most recent 5-year period, either to report new information about a proceeding that you have not reported previously or affirm that there is no new information to report. If you have Federal contract, grant, and cooperative agreement awards with a cumulative total value greater than $10,000,000, you must disclose semiannually any information about the criminal, civil, and administrative proceedings.
5. Definitions. For purposes of this award term—
“Administrative proceeding” means a non-judicial process that is adjudicatory in nature to make a determination of fault or liability (for example, Securities and Exchange Commission Administrative proceedings, Civilian Board of Contract Appeals proceedings, and Armed Services Board of Contract Appeals proceedings). This includes proceedings at the Federal and State level but only in connection with the performance of a Federal contract or grant. It does not include audits, site visits, corrective plans, or inspection of deliverables.
ITEM NO. 4.
41 “Conviction” means a judgment or conviction of a criminal offense by any court of competent jurisdiction, whether entered upon a verdict or a plea, and includes a conviction entered upon a plea of nolo contendere.
“Total value of currently active grants, cooperative agreements, and procurement contracts” includes the value of the Federal share already received plus any anticipated Federal share under those awards (such as continuation funding).
12.8 Debt
Pursuant to 7 CFR 3.14(b), USDA awarding agencies are not permitted to extend Federal financial assistance (either directly or indirectly) in the form of grants, loans, or loan guarantees to judgement debtors who have a judgement lien placed against their property until the judgement is satisfied, unless the USDA awarding agency grants a waiver in accordance with USDA regulations. See 31 U.S.C. § 3720B. By accepting this award, the recipient and affirms they are not a judgement debtor who has a judgement lien placed against their property, or that the USDA awarding agency has granted a waiver in accordance with USDA regulations.
Pursuant to 31 U.S.C. Chapter 37, any funds paid to a recipient in excess of the amount to which the recipient is finally determined to be entitled under the terms and conditions of the award constitute a debt to the Federal Government. If not paid within a reasonable period after the demand for payment, the USDA awarding agency may reduce the debt by:
1. Making an administrative offset against other requests for reimbursements;
2. Withhold advance payments otherwise due to the recipient; or
3. Taking other action permitted by statute.
Except as otherwise provided by law, the USDA awarding agency shall charge interest on an overdue debt in accordance with 31 U.S.C., Chapter 37 and 31 CFR Part 901.
12.9 Never Contract with the Enemy
In accordance with 2 CFR part 183, the following terms apply if the Federal award exceeds $50,000 and is performed outside the United States, including U.S. territories, and is in support of a contingency operation in which members of the Armed Forces are actively engaged in hostilities. It does not apply to the authorized intelligence or law enforcement activities of the Federal Government.
1. Prohibition on Providing Funds to the Enemy
a. The recipient must—
i. Exercise due diligence to ensure that no funds, including supplies and services, received under this Federal award are provided directly or indirectly (including through subawards or contracts) to a person or entity who is actively opposing the United States or coalition forces involved in a contingency operation in which members of the Armed Forces are actively
ITEM NO. 4.
42 engaged in hostilities, which must be completed through 2 CFR 180.300 prior to issuing a subaward or contract and;
ii. Terminate or void in whole or in part any subaward or contract with a person or entity listed in SAM as a prohibited or restricted source pursuant to subtitle E of Title VIII of the NDAA for FY 2015, unless the Federal agency provides written approval to continue the subaward or contract. b. The recipient may include the substance of this clause, including paragraph (a) of this clause, in subawards under this Federal award that have an estimated value over $50,000 and will be performed outside the United States, including its outlying areas.
c. The USDA awarding agency has the authority to terminate or void this Federal award, in whole or in part, if the USDA awarding agency becomes aware that the recipient failed to exercise due diligence as required by paragraph (a) of this clause or if the USDA awarding agency becomes aware that any funds received under this Federal award have been provided directly or indirectly to a person or entity who is actively opposing coalition forces involved in a contingency operation in which members of the Armed Forces are actively engaged in hostilities.
2. Additional Access to Recipient Records
a. In addition to any other existing examination-of-records authority, the Federal Government is authorized to examine any of recipient records and the records of subrecipients or contracts to the extent necessary to ensure that funds, including supplies and services, available under this grant or cooperative agreement are not provided, directly or indirectly, to a person or entity that is actively opposing the United States or coalition forces involved in a contingency operation in which members of the Armed Forces are actively engaged in hostilities, except for awards awarded by the Department of Defense on or before December 19, 2017, that will be performed in the United States Central Command (USCENTCOM) theater of operations.
b. The substance of this clause, including this paragraph (b), must be included in subawards or contracts under this grant or cooperative agreement that have an estimated value over $50,000 and will be performed outside the United States, including its outlying areas.
12.10 Whistleblower Protection
USDA recognizes that whistleblowers perform an important service to the agency and the public when they come forward with what they reasonably believe to be evidence of wrongdoing. They should never be subject to reprisal for doing so. Federal law protects federal employees against reprisal for whistleblowing. In addition, under 41 U.S.C. § 4712, it is illegal for an employee of a Federal contractor, subcontractor, grantee, subgrantee, or for a personal services contractor to be discharged, demoted, or otherwise discriminated against for making a protected whistleblower disclosure. Also, under Presidential Policy Directive-19 (PPD-19), an
ITEM NO. 4.
43 action affecting access to classified information cannot be taken in reprisal for protected whistleblowing.
The USDA Office of the Inspector General (USDA OIG) has jurisdiction to investigate allegations of reprisal for whistleblowing by employees of USDA contractors, subcontractors, grantees, subgrantees, and personal services contractors. Information on how to report suspected reprisal to the USDA OIG is available at:
https://usdaoig.oversight.gov/resources/whistleblower-protection-coordinator.
12.11 Drug Free Workplace
The recipient must comply with the drug-free workplace requirements in Subpart B (or Subpart C, if the recipient is an individual) of 2 CFR part 182, as implemented and supplemented by 2 CFR part 421, in accordance with the Drug-Free Workplace Act of 1988, as amended (41 U.S.C. §§ 8101 - 8106). This term applies unless an USDA awarding agency authorized official determines that application to a Federal award would be inconsistent with the international obligations of the United States or the laws or regulations of a foreign government.
13.0 COMPLIANCE WITH EXECUTIVE ORDERS AND OTHER
PRESIDENTIAL ACTIONS
USDA must comply with Executive Orders (EOs) and other Presidential Actions. When incorporated into Federal awards, the recipient must comply with EOs or Presidential Actions, as well as USDA awarding agency policies and regulations. The following EOs are expressly incorporated into this Federal award:
13.1 EO 13043: Increasing Seat Belt Use in the United States The recipient is encouraged to adopt and enforce on-the-job seat belt policies and programs for its employees when operating company-owned, rented, or personally owned vehicles. USDA encourages individuals to use seat belts while driving in connection with the Federal award.
See full text.
13.2 EO 13513: Federal Leadership on Reducing Text Messaging While Driving The recipient is encouraged to adopt and enforce policies that ban text messaging while driving company-owned or -rented vehicles or Federal Government owned vehicles, or while driving personally owned vehicles when on official Federal Government business or when performing any work for or on behalf of the Federal Government. See full text.
13.3 EO 13642: Making Open and Machine Readable the New Default for Government Information
In order to ensure government information is easy to find, accessible, and usable, Federal Government information resources shall be open and machine readable. The recipient should, whenever practicable, collect, transmit, and store award-related information in open and machine-readable formats rather than in closed formats or on paper. See full text.
ITEM NO. 4.
44 13.4 EO 14149: Restoring Freedom of Speech and Ending Federal Censorship No funding shall be directed towards activities that are contrary to section 2 of EO 14149. See full text.
13.5 EO 14168: Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government
No funding shall be used to promote gender ideology. See full text and Section 12.2.
13.6 EO 14173: Ending Illegal Discrimination and Restoring Merit-Based Opportunity
The recipient shall comply fully with all applicable Federal anti-discrimination laws and acknowledges said compliance is material to the government's payment decisions for purposes of 31 U.S.C. § 3729(b)(4). The recipient certifies they do not operate any programs that promote Diversity, Equity, or Inclusion (DEI) that violate any applicable Federal antidiscrimination laws. See full text and Section 12.2.
13.7 EO 14199: Withdrawing the U.S. From and Ending Funding to Certain United Nations Organizations and Reviewing U.S. Support to all International Organizations
No funding shall be used for a contribution, grant, or other payment to UNWRA. See full text.
13.8 EO 14201: Keeping Men Out of Women’s Sports
No funding shall be directed towards educational programs that deprive women and girls of fair athletic opportunities. No funding shall be directed towards male competitive participation in women’s sports. See full text.
13.9 EO 14204: Addressing Egregious Actions of the Republic of South Africa No aid or assistance shall be provided to South Africa. See full text.
13.10 EO 14218: Ending Taxpayer Subsidization of Open Borders No funding shall be directed towards programs that allow illegal aliens to obtain taxpayerfunded benefits, provide public resources to meet the needs of illegal aliens, or provide incentives for illegal immigration by demonstrating the availability of public benefits. See full text.
13.11 EO 14224: Designating English as the Official Language of the United States English is the official language of the United States. All USDA Federal financial assistance announcements, applications, and Federal award information should be in the English language. See full text.
13.12 EO 14292: Improving the Safety and Security of Biological Research No funding shall be used for dangerous gain-of-function research conducted by foreign entities in countries of concern pursuant to 42 U.S.C. 6627(c), or in other countries where there is not adequate oversight to ensure that the countries are compliance with United States oversight standards and policies. No funding shall be used for other life-science research that is occurring in countries of concern or foreign countries where there is not adequate oversight to ensure that
ITEM NO. 4.
45 the countries are compliance with United States oversight standards and policies and that could reasonably pose a threat to public health, public safety, and economic or national security. See full text.
ITEM NO. 4.
PREPARED BY: Diane Howard
Finance Division Manager
Reviewed by: Town Manager, Assistant Town Manager, 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: 10/06/2026
ITEM NO: 5
DATE: September 21, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Approve and Ratify the Accounts Payable Check Registers and Payroll Report
RECOMMENDATION: Approve the Accounts Payable Check Registers dated September 11, 2026, and September 18, 2026, and ratify and approve the Payroll Report dated September 18, 2026.
FISCAL IMPACT:
Approval and ratification of the reports will have no additional fiscal impact. The reports document $1,290,541.68 in payments previously issued, consisting of $286,918.68 in accounts payable payments and $1,003,623.00 in payroll payments. Staff represents that all payments were charged to accounts authorized in the Town Council approved budgets and were within available appropriations.
STRATEGIC PRIORITY:
This item supports the Town’s amended 2025 to 2027 Top Strategic Priority to ensure prudent financial management, under the Fiscal Stability Core Goal.
BACKGROUND:
Pursuant to Town Municipal Code section 2.30.020 (d) payroll warrants need not be audited by the Town Council prior to payment. Payrolls shall be presented to the Town Council for ratification and approval at the regular meeting after delivery of the payroll warrants.
The Town Code does not provide specific direction on accounts payable. However, Government Code Section 37208 provides the following guidance:
ITEM NO. 5.
PAGE 2 OF 3
SUBJECT: Accounts Payable Check Registers and Payroll Reports DATE: September 21, 2026
(a) Payroll warrants or checks need not be audited by the legislative body prior to payment.
Payrolls shall be presented to the legislative body for ratification and approval at the first meeting after delivery of the payroll warrants or checks. (b) Warrants or checks drawn in payment of demands certified or approved by the city clerk as conforming to a budget approved by ordinance or resolution of the legislative body need not be audited by the legislative body prior to payment.
(c) Notwithstanding subdivisions (a) and (b), budgeted payrolls and demands paid by warrants or checks may be presented to the legislative body for ratification and approval in the form of an audited comprehensive annual financial report.
DISCUSSION:
Administrative Services staff presents biweekly payroll reports to the Council on consent, as prescribed in the Municipal Code.
Although not specifically required under Municipal Code or the Government Code, it is considered good practice to report on checks paid by a government agency. As such, staff provides accounts payable check registers, along with payroll reports, on a biweekly basis as part of the consent calendar for regular council meetings.
Accounts payable and payroll for the following periods have been audited and approved by staff for the following payments:
Type Check Date Amount
Accounts Payable September 11, 2026 $ 138,025.61
Accounts Payable September 18, 2026 $ 148,893.07
Payroll September 18, 2026 $ 1,003,623.00
Combined Accounts Payable
and Payroll Total
$ 1,290,541.68
ALTERNATIVES:
The Council may request clarification or correction of a specified register and continue consideration of that portion of the item. Because the payroll warrants have already been delivered, staff recommends that any requested correction be narrowly identified and returned promptly for Council ratification and approval.
CONCLUSION:
Presenting the payroll reports for Council ratification and approval complies with the Town Code and Government Code. Presenting the accounts payable registers provides additional transparency and Council oversight as an administrative best practice.
ITEM NO. 5.
PAGE 3 OF 3
SUBJECT: Accounts Payable Check Registers and Payroll Reports DATE: September 21, 2026
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ATTACHMENTS:
1. Accounts Payable Register for 09/11/2026
2. Accounts Payable Register for 09/18/2026
3. Payroll by Location for 09/18/2026
ITEM NO. 5.
ACCOUNTS PAYABLE CHECK REGISTER
CHECK RUN 09-11-26
CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163589 09/11/2026 ALAMEDA COUNTY SHERIFF'S OFFICE 10945 081726 - DEMONT, FLEMING, MARTIN, NGUYEN, RONDEAU1114301 64111 $ 1,378.00 163589 Total $ 1,378.00
163590 09/11/2026 AMAZON CAPITAL SERVICES INC 11DTMQKH1FDF SUPPLIES 6335423 61214 $ 92.29 163590 09/11/2026 AMAZON CAPITAL SERVICES INC 1F3WMRV31HND SUPPLIES 1117201 61191 $ 86.34 163590 09/11/2026 AMAZON CAPITAL SERVICES INC 1HWXM1FQFXJT SUPPLIES 2617301 62424 $ 273.07 163590 09/11/2026 AMAZON CAPITAL SERVICES INC 1KW43D3J4RD9 SUPPLIES 6335423 61214 $ 186.48 163590 09/11/2026 AMAZON CAPITAL SERVICES INC 1MD1HK3KY6PJ SUPPLIES 1117101 61111 $ 57.08 163590 09/11/2026 AMAZON CAPITAL SERVICES INC 1NJKQLMRGYGL SUPPLIES 6212502 61133 $ 681.92 163590 09/11/2026 AMAZON CAPITAL SERVICES INC 1QQWCMW1CKJ7 SUPPLIES 1117201 61191 $ 62.75 163590 09/11/2026 AMAZON CAPITAL SERVICES INC 1QR9Y1GXC4YG SUPPLIES 1117204 61132 $ 77.18 163590 09/11/2026 AMAZON CAPITAL SERVICES INC 1RHQNV93GHX4 SUPPLIES 6212502 61133 $ 60.13 163590 09/11/2026 AMAZON CAPITAL SERVICES INC 1X33FL33KRQG SUPPLIES 1117201 61191 $ 85.80 163590 Total $ 1,663.04
163591 09/11/2026 AMAZON CAPITAL SERVICES INC 117WN934DNFC SUPPLIES 6335423 61214 $ 47.11 163591 09/11/2026 AMAZON CAPITAL SERVICES INC 1KNXRW6DCV6R SUPPLIES 1117204 61132 $ 26.31 163591 09/11/2026 AMAZON CAPITAL SERVICES INC 1L67TJFQTTY9 SUPPLIES 1114202 61111 $ 38.32 163591 09/11/2026 AMAZON CAPITAL SERVICES INC 1LPX44N1RF9F SUPPLIES 1117101 61111 $ 12.33 163591 09/11/2026 AMAZON CAPITAL SERVICES INC 1MD1HK3KXF3N SUPPLIES 6335423 61214 $ 12.21 163591 09/11/2026 AMAZON CAPITAL SERVICES INC 1P4T1MRTP6H6 SUPPLIES 1112201 61111 $ 54.90 163591 09/11/2026 AMAZON CAPITAL SERVICES INC 1WCH96TDK1MK SUPPLIES 1117101 61111 $ 26.15 163591 Total $ 217.33
163592 09/11/2026 ATCHISON, BARISONE & CONDOTTI 35168 070126-073126 SERVICES 1111301 63215 $ 27,383.09 163592 Total $ 27,383.09
163593 09/11/2026 BEAR ELECTRICAL SOLUTIONS, INC 12758 WORK ORDER 38947 1115401 63364 $ 19,147.15 163593 Total $ 19,147.15
163594 09/11/2026 BPS TACTICAL, INC 26031448 VEST COVER MODIFICATIONS 1114301 61165 $ 276.12 163594 Total $ 276.12
163595 09/11/2026 CALIFORNIA MULTI AGENCY SUPPORT SVC 6A8474D92703D 101926-102126 UAS BASIC PILOTS COURSE 1114301 64111 $ 5,196.00 163595 09/11/2026 CALIFORNIA MULTI AGENCY SUPPORT SVC 6A84A431E45C4 101926-102126 UAS BASIC PILOTS COURSE 1114301 64111 $ 1,299.00 163595 Total $ 6,495.00
163596 09/11/2026 CALIFORNIA NATIVE PLANT SOCIETY 2026-001 081626 LIBRARY PROGRAM/BUSINESS LICENSE 1117101 61111 $ 26.00 163596 09/11/2026 CALIFORNIA NATIVE PLANT SOCIETY 2026-001 081626 LIBRARY PROGRAM/BUSINESS LICENSE 2617301 62424 $ 200.00 163596 Total $ 226.00
163597 09/11/2026 CAPITOL DEL GRANDE 2 INC 234367 AUTO PARTS 1115402 61265 $ 688.11 163597 Total $ 688.11
163598 09/11/2026 CAPITOL DEL GRANDE 4 INC 268390 AUTO PARTS 1115402 61265 $ 510.68 163598 09/11/2026 CAPITOL DEL GRANDE 4 INC 268541 AUTO PARTS 1115402 61265 $ 120.62 163598 Total $ 631.30
163599 09/11/2026 COLANTUONO HIGHSMITH & WHATLEY PC 71833 SERVICES THRU 073126 1111301 63215 $ 1,810.00 163599 Total $ 1,810.00
163600 09/11/2026 CORODATA SHREDDING INC DN1593419 070726 AND 072126 SHREDDING 1112201 61111 $ 199.50 163600 Total $ 199.50
163601 09/11/2026 DELL MARKETING LP 10888276251 DELL PRO 14 6212502 61133 $ 1,556.05
ITEM NO. 5.
ACCOUNTS PAYABLE CHECK REGISTER
CHECK RUN 09-11-26
163601 Total $ 1,556.05
163602 09/11/2026 DICK'S AUTOMOTIVE TRANSPORT 34630 080626 SERVICE 1115402 62378 $ 108.00 163602 Total $ 108.00
163603 09/11/2026 EPLUS TECHNOLOGY, INC. V3133451 RUBRIK CLOUD VAULT 6212502 63332 $ 1,245.00 163603 Total $ 1,245.00
163604 09/11/2026 EWING IRRIGATION 30815515 CREDIT MEMO 1115301 61215 $ (106.41) 163604 09/11/2026 EWING IRRIGATION 31595290 SUPPLIES 1115301 61215 $ 583.18 163604 09/11/2026 EWING IRRIGATION 31625932 SUPPLIES 1115301 61215 $ 173.31 163604 Total $ 650.08
163605 09/11/2026 GLORIA M FIELDS 52906 SUPPLIES 1114201 61111 $ 16.50 163605 Total $ 16.50
163606 09/11/2026 GOLDEN ACORN MUSIC LLC LIB-LG-20260624 091526 LIBRARY PROGRAM 1117101 61111 $ 85.31 163606 09/11/2026 GOLDEN ACORN MUSIC LLC LIB-LG-20260624 091526 LIBRARY PROGRAM 2617301 62415 $ 400.00 163606 Total $ 485.31
163607 09/11/2026 GOLDFARB & LIPMAN 497494 SERVICES THRU 073126 1111301 63215 $ 1,535.50 163607 Total $ 1,535.50
163608 09/11/2026 GOODYEAR AUTO SERVICE CENTER 0000109371 SUPPLIES 1115402 61265 $ 793.13 163608 09/11/2026 GOODYEAR AUTO SERVICE CENTER 0000109372 TIRES 1115402 61265 $ 565.08 163608 09/11/2026 GOODYEAR AUTO SERVICE CENTER 0000109468 TIRES 1115402 61265 $ 29.98 163608 09/11/2026 GOODYEAR AUTO SERVICE CENTER 0000109469 TIRES 1115402 61265 $ 135.78 163608 Total $ 1,523.97
163609 09/11/2026 GRAINGER 9046318110 SUPPLIES 1115301 61214 $ 64.09 163609 09/11/2026 GRAINGER 9046318110 SUPPLIES 1115401 61275 $ 64.08 163609 09/11/2026 GRAINGER 9049846091 SUPPLIES 6335423 61214 $ 437.97 163609 Total $ 566.14
163610 09/11/2026 HOMER T HAYWARD LUMBER 99234 CREDIT MEMO 1115401 61275 $ (75.86) 163610 09/11/2026 HOMER T HAYWARD LUMBER 1460825 SUPPLIES 1115401 61275 $ 225.16 163610 09/11/2026 HOMER T HAYWARD LUMBER 1461258 SUPPLIES 1115401 61275 $ 62.62 163610 Total $ 211.92
163611 09/11/2026 HOUSEKEYS INC LG260818 AUGUST 2026 SERVICES 1113501 63383 $ 12,500.00 163611 Total $ 12,500.00
163612 09/11/2026 INTOXIMETERS 820672 ASIV USA SENSOR BLANK 1114301 61253 $ 225.52 163612 Total $ 225.52
163613 09/11/2026 KODEX INC TFLBDRX2-0001 SEARCH WARRANT 1114303 61163 $ 245.00 163613 Total $ 245.00
163614 09/11/2026 LEHR UPFITTERS OPCO LLC SI135685 SIREN MICROPHONE HANDSET 1115402 61265 $ 319.53 163614 09/11/2026 LEHR UPFITTERS OPCO LLC SI135823 AUTO PARTS 1115402 61265 $ 282.55 163614 Total $ 602.08
163615 09/11/2026 MIDWEST MOTOR SUPPLY CO., INC. 104752257 SUPPLIES 1115402 61265 $ 436.34 163615 09/11/2026 MIDWEST MOTOR SUPPLY CO., INC. 104759398 SUPPLIES 1115402 61265 $ 296.49 163615 Total $ 732.83
163616 09/11/2026 NHA ADVISORS LLC 2126 070126-073126 FISCAL CONDITION ANALYSIS 1111201 63219 $ 13,301.67 163616 Total $ 13,301.67
163617 09/11/2026 O'BRIEN CODE CONSULTING, INC, 2026001079 B26-0530 117 & 117-A ALERCHE DRIVE 1113999 68416 $ 4,884.61
ITEM NO. 5.
ACCOUNTS PAYABLE CHECK REGISTER
CHECK RUN 09-11-26
163617 09/11/2026 O'BRIEN CODE CONSULTING, INC, 2026001080 B26-0531 15652 BHR 1113999 68416 $ 1,363.27 163617 09/11/2026 O'BRIEN CODE CONSULTING, INC, 2026001029RTM B22-0534 221 HIGHLAND TERRACE 1113999 68416 $ 450.00 163617 09/11/2026 O'BRIEN CODE CONSULTING, INC, 2026001039RTM B24-0065 25 W MAIN STREET 1113999 68416 $ 1,050.00 163617 09/11/2026 O'BRIEN CODE CONSULTING, INC, 2026001046TM B26-0330 536 NSC AVENUE 1113999 68416 $ 450.00 163617 09/11/2026 O'BRIEN CODE CONSULTING, INC, 2026001087TM B25-1316 249 & 249-A LOS GATOS BOULEVARD 1113999 68416 $ 450.00 163617 Total $ 8,647.88
163618 09/11/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-114202 CREDIT MEMO 1115402 61265 $ (180.20) 163618 09/11/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-117327 SUPPLIES 1115402 61265 $ 29.06 163618 09/11/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-117421 AUTO PARTS 1115402 61265 $ 267.68 163618 09/11/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-117431 AUTO PARTS 1115402 61265 $ (22.00) 163618 09/11/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-117447 AUTO PARTS 1115402 61265 $ 87.26 163618 09/11/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-117542 CREDIT MEMO 1115402 61265 $ (10.99) 163618 Total $ 170.81
163619 09/11/2026 ODP BUSINESS SOLUTIONS 478761399001 SUPPLIES 1111201 61111 $ 313.26 163619 09/11/2026 ODP BUSINESS SOLUTIONS 480034241001 SUPPLIES 1112301 61111 $ 40.64 163619 09/11/2026 ODP BUSINESS SOLUTIONS 480037191001 PAPER 1111201 61111 $ 460.20 163619 Total $ 814.10
163620 09/11/2026 OFFICE RELIEF, INC. INV29085526 ERGO SUPPLIES/EQUIPMENT 6122202 62322 $ 209.65 163620 Total $ 209.65
163621 09/11/2026 ORCHARD CITY LOCK AND SAFE, INC. 87850 SERVICE CALL 110 E MAIN ST 6335423 62378 $ 240.00 163621 09/11/2026 ORCHARD CITY LOCK AND SAFE, INC. 88002 SERVICE CALL 6335423 62378 $ 260.00 163621 Total $ 500.00
163622 09/11/2026 RACHEL FAUGHT 081826-1 REFUND SPECIAL USE PERMIT DEPOSIT 1115301 42511 $ 500.00 163622 Total $ 500.00
163623 09/11/2026 YMCA OF SILICON VALLEY 081826 REFUND SPECIAL USE PERMIT DEPOSIT 1115301 42511 $ 200.00 163623 Total $ 200.00
163624 09/11/2026 PACIFIC GAS & ELECTRIC 02259-090326 072826-082626 SERVICE 1115401 62621 $ 153.54 163624 09/11/2026 PACIFIC GAS & ELECTRIC 09379-090226 072726-082526 SERVICE 6335423 62611 $ 678.33 163624 09/11/2026 PACIFIC GAS & ELECTRIC 09379-090226 072726-082526 SERVICE 6335423 62612 $ 94.36 163624 09/11/2026 PACIFIC GAS & ELECTRIC 09379-090226 072726-082526 SERVICE 1111201 72111 $ 13,002.80 163624 09/11/2026 PACIFIC GAS & ELECTRIC 33155-090226 072726-082526 SERVICE 1115401 62621 $ 10.48 163624 09/11/2026 PACIFIC GAS & ELECTRIC 50296-090226 072726-082526 SERVICE 1115301 62611 $ 74.17 163624 09/11/2026 PACIFIC GAS & ELECTRIC 53773-090426 073126-083126 SERVICE 1115401 62621 $ 11.36 163624 09/11/2026 PACIFIC GAS & ELECTRIC 73832-090326 080426-090226 SERVICE 6335423 62612 $ 13.23 163624 Total $ 14,038.27
163625 09/11/2026 PERMITIUM LLC PER00042815 JULY 2026 SERVICE 1114202 64212 $ 250.00 163625 Total $ 250.00
163626 09/11/2026 POSTMASTER 090426-655 PO BOX 655 RENEWAL 1112301 61114 $ 284.00 163626 Total $ 284.00
163627 09/11/2026 RURAL SUPPLY HARDWARE INC 7950 SUPPLIES 1115301 61214 $ 19.71 163627 09/11/2026 RURAL SUPPLY HARDWARE INC 7966 SUPPLIES 1115401 61275 $ 42.90 163627 09/11/2026 RURAL SUPPLY HARDWARE INC 7968 SUPPLIES 1115301 61214 $ 57.63 163627 09/11/2026 RURAL SUPPLY HARDWARE INC 7988 SUPPLIES 1115301 61214 $ 21.96 163627 Total $ 142.20
ITEM NO. 5.
ACCOUNTS PAYABLE CHECK REGISTER
CHECK RUN 09-11-26
163628 09/11/2026 SAN JOSE WATER COMPANY 17808-090226 070126-083126 SERVICE 1115301 62613 $ 166.08 163628 09/11/2026 SAN JOSE WATER COMPANY 27251-090226 070126-083126 SERVICE 1115301 62613 $ 359.89 163628 09/11/2026 SAN JOSE WATER COMPANY 63227-090226 070126-090126 SERVICE 6335423 62613 $ 1,341.54 163628 Total $ 1,867.51
163629 09/11/2026 STEPHEN CIARI PLUMBING AND HEATING 29448 081726 SERVICE 6335423 62373 $ 514.94 163629 Total $ 514.94
163630 09/11/2026 SUMMIT UNIFORMS LLC 44565 UNIFORMS - NONSWORN 1114201 61165 $ 26.40 163630 09/11/2026 SUMMIT UNIFORMS LLC 41518-1 UNIFORMS - NONSWORN DISPATCH 1114201 61165 $ 420.20 163630 Total $ 446.60
163631 09/11/2026 THE BANK OF NEW YORK MELLON 00252-25-0005773 100124-123124 ADMINISTRATION FEE 1112301 62331 $ 1,875.00 163631 09/11/2026 THE BANK OF NEW YORK MELLON 00252-25-0018430 010125-033125 ADMINISTRATION FEE 1112301 62331 $ 1,875.00 163631 09/11/2026 THE BANK OF NEW YORK MELLON 00252-25-0056044 040125-063025 ADMINISTRATION FEE 1112301 62331 $ 1,875.00 163631 09/11/2026 THE BANK OF NEW YORK MELLON 00252-25-0069411 070125-093025 ADMINISTRATION FEE 1112301 62331 $ 1,875.00 163631 09/11/2026 THE BANK OF NEW YORK MELLON 00252-26-0094161 100125-123125 ADMINISTRATION FEE 1112301 62331 $ 1,875.00 163631 09/11/2026 THE BANK OF NEW YORK MELLON 00252-26-0117003 010126-033126 ADMINISTRATION FEE 1112301 62331 $ 1,875.00 163631 Total $ 11,250.00
163632 09/11/2026 URBAN37 INC 2252 073026 SERVICE 1113999 68416 $ 444.44 163632 Total $ 444.44
163633 09/11/2026 VICKI L BLANDIN LG25-26 TRANSCRIPTION SERVICES 1113201 62310 $ 125.00 163633 Total $ 125.00
163634 09/11/2026 WALTER S. LEVISON JR 2026/052 101 S SANTA CRUZ 1113999 68413 $ 2,000.00 163634 Total $ 2,000.00
Grand Total $ 138,025.61
ITEM NO. 5.
ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 09-18-26
CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163635 09/18/2026 4LEAF INC J0402-26A B26-0428 438 NSC AVE 1113999 68416 $ 1,760.42 163635 Total $ 1,760.42
163636 09/18/2026 AFSCME COUNCIL 57 111749 AFSCME DUES PPE 09/12/26 111 21263 $ 301.86 163636 Total $ 301.86
163637 09/18/2026 AIR SYSTEMS INC 961021020 060126-063026 LIBRARY SERVICE 6335423 63352 $ 4,769.00 163637 Total $ 4,769.00
163638 09/18/2026 AMAZON CAPITAL SERVICES INC 16CK34FYRYFX SUPPLIES 1112105 62437 $ 95.28 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 1733RJRYP1T9 SUPPLIES 1117201 61191 $ 51.97 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 196MRH9QTM9C SUPPLIES 1117204 61132 $ 47.94 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 1HFX69DHJL4X SUPPLIES 1115402 61265 $ 126.44 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 1LXHKHMXDV6X SUPPLIES 6335423 61112 $ 73.89 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 1M11Q7PRJ9R1 SUPPLIES 6212502 61133 $ 131.74 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 1Q4C6HMHNJ6M SUPPLIES 1117201 61191 $ 148.49 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 1R3M31V1TJMK SUPPLIES 2617301 62415 $ 27.12 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 1W6TN6JJF41L SUPPLIES 1114301 61165 $ 158.10 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 1W6TN6JJF41L SUPPLIES 1114301 61161 $ 554.86 163638 09/18/2026 AMAZON CAPITAL SERVICES INC 1YRQVX9WQQYR SUPPLIES 2617301 62421 $ 252.91 163638 Total $ 1,668.74
163639 09/18/2026 AMAZON CAPITAL SERVICES INC 1DYMG9V7MHMK SUPPLIES 1117201 61191 $ 19.78 163639 09/18/2026 AMAZON CAPITAL SERVICES INC 1KY1N66XH7LV SUPPLIES 6335423 61214 $ 14.23 163639 09/18/2026 AMAZON CAPITAL SERVICES INC 1L77TW6YYC3Y SUPPLIES 1117201 61191 $ 18.89 163639 09/18/2026 AMAZON CAPITAL SERVICES INC 1QVDXPGNLWXK SUPPLIES 1117101 61111 $ 25.89 163639 09/18/2026 AMAZON CAPITAL SERVICES INC 1XFJDTHRXMYM SUPPLIES 1117202 61192 $ 8.80 163639 Total $ 87.59
163640 09/18/2026 BAIRD AND DRISKELL AND ABRAMS COMMUNITY PLANNING 2184 ADU ACCELERATOR TOOLS LICENSE FEES FOR 2026 1113201 62378 $ 960.00 163640 Total $ 960.00
163641 09/18/2026 BAN SERVICES COMPANY INC 303261 PEST CONTROL SERVICES 6335423 62376 $ 125.00 163641 Total $ 125.00
163642 09/18/2026 BRIGHTVIEW LANDSCAPE SERVICES INC 6687384 JOB #420309763 070626 STUMP 1115401 62354 $ 661.00 163642 Total $ 661.00
163643 09/18/2026 BURKE, WILLIAMS, SORENSEN LLP 374808 SERVICES THROUGH 073126 1111301 63215 $ 6,135.43 163643 09/18/2026 BURKE, WILLIAMS, SORENSEN LLP 374809 SERVICES THROUGH 080326 1111301 63215 $ 180.00 163643 Total $ 6,315.43
163644 09/18/2026 CALIFORNIA JOINT POWERS INSURANCE AUTHORITY POLLU-00179 070126-063027 POLLUTION LIABILITY INSURANCE 6111302 65511 $ 5,131.00 163644 Total $ 5,131.00
163645 09/18/2026 CAPITOL DEL GRANDE 2 INC 234471 AUTO PARTS 1115402 61265 $ 164.12 163645 Total $ 164.12
163646 09/18/2026 CITY OF SAN JOSE 1290638 070125-063026 TRAFFIC SIGNALS 1115401 63364 $ 7,197.56 163646 Total $ 7,197.56
163647 09/18/2026 CORODATA SHREDDING INC DN1593420 071426 AND 072826 SHREDDING 1114201 62378 $ 199.11 163647 Total $ 199.11
163648 09/18/2026 COUNTY OF SANTA CLARA FY26-02 FY 26 - WEED ABATEMENT SHORTFALL 1115101 62378 $ 19,215.00 163648 Total $ 19,215.00
163649 09/18/2026 D&M TRAFFIC SERVICES 579988 SUPPLIES 1115401 61275 $ 282.21 163649 Total $ 282.21
163650 09/18/2026 DELL MARKETING LP 10889543410 DELL PRO 14 6212502 61133 $ 25,576.72 163650 Total $ 25,576.72
ITEM NO. 5.
ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 09-18-26
CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163651 09/18/2026 DEPARTMENT OF INDUSTRIAL RELATIONS E2317484SJ 081726 INSPECTION 6335423 63353 $ 225.00 163651 09/18/2026 DEPARTMENT OF INDUSTRIAL RELATIONS E2317485SJ 081726 INSPECTION 6335423 63353 $ 225.00 163651 Total $ 450.00
163652 09/18/2026 DUDEK 202607721 070126-072426 SERVICES ON-CALL ARBORIST 1115401 62354 $ 4,779.68 163652 Total $ 4,779.68
163653 09/18/2026 ECOSANITATION LLC 1595 082026 SERVICE 1115401 63365 $ 5,000.00 163653 Total $ 5,000.00
163654 09/18/2026 EWING IRRIGATION 31719444 SUPPLIES 1115301 61214 $ 1,039.22 163654 Total $ 1,039.22
163655 09/18/2026 FRONTIER CALIFORNIA INC 1970013-090626 090626-100526 SERVICE 6212502 62614 $ 770.00 163655 Total $ 770.00
163656 09/18/2026 GOODYEAR AUTO SERVICE CENTER 0000109614 TIRES 1115402 61265 $ 282.54 163656 Total $ 282.54
163657 09/18/2026 GOVERNMENT JOBS.COM INC INV-159975-A 070126-063027 GOVERNMENTJOBS/INSIGHT 1112201 63332 $ 10,804.46 163657 Total $ 10,804.46
163658 09/18/2026 GRAINGER 9057062045 SUPPLIES 6335423 61214 $ 64.03 163658 Total $ 64.03
163659 09/18/2026 HEATHER MURPHY 2026-2027TUITION FY 2026-2027 TUITION REIMBURSEMENT 1114301 64291 $ 1,213.00 163659 Total $ 1,213.00
163660 09/18/2026 JOSEPH A ACEVES 21276 BUSINESS CARDS 1113201 61111 $ 43.90 163660 Total $ 43.90
163661 09/18/2026 JULIE ANNE BURNS 2025-2026TUITION FY 2025-2026 TUITION REIMBURSEMENT 1114201 64292 $ 1,065.00 163661 Total $ 1,065.00
163662 09/18/2026 LC ACTION POLICE SUPPLY LTD 489757 SUPPLIES 1114301 61253 $ 2,045.65 163662 09/18/2026 LC ACTION POLICE SUPPLY LTD 491159 SUPPLIES 1114301 61253 $ 7,695.92 163662 Total $ 9,741.57
163663 09/18/2026 LOS GATOS TOWN EMPLOYEES FOUNDATION 111750 LGTEF PPE 09/12/26 111 21264 $ 438.00 163663 Total $ 438.00
163664 09/18/2026 METRO PUBLISHING 187330 082626 AD 1112401 62306 $ 263.64 163664 Total $ 263.64
163665 09/18/2026 MIP V WASTE (ECI) AIV LP 300000535 NATURAL MULCH 1115401 61278 $ 290.40 163665 Total $ 290.40
163666 09/18/2026 NICHOLAS LINDAMOOD 2025-2026TUITION-3 FY 2025-2026 TUITION REIMBURSEMENT 1114201 64292 $ 1,093.00 163666 09/18/2026 NICHOLAS LINDAMOOD 2025-2026TUITION-4 FY 2025-2026 TUITION REIMBURSEMENT 1114201 64292 $ 132.00 163666 Total $ 1,225.00
163667 09/18/2026 NINYO & MOORE GEOTECHNICAL & ENVIRONMENTAL 325218A SERVICES THROUGH 063026 4118120 82405 $ 800.00 163667 Total $ 800.00
163668 09/18/2026 O'BRIEN CODE CONSULTING, INC, 2026001084 B26-0458 15825 & 15825-A EDMUND DRIVE 1113999 68416 $ 2,818.03 163668 09/18/2026 O'BRIEN CODE CONSULTING, INC, 2025001184TM B25-1340 50 NSC AVENUE 1113999 68416 $ 900.00 163668 09/18/2026 O'BRIEN CODE CONSULTING, INC, 2025001194TM B25-1333 126 & 126-A VISTA DEL PRADO 1113999 68416 $ 600.00 163668 09/18/2026 O'BRIEN CODE CONSULTING, INC, 2026001062RTM B26-0370 28 E MAIN STREET 1113999 68416 $ 450.00 163668 09/18/2026 O'BRIEN CODE CONSULTING, INC, 2026001090TM B25-0722 32 NSC AVENUE 1113999 68416 $ 450.00 163668 09/18/2026 O'BRIEN CODE CONSULTING, INC, 2026001091TM B25-1251 550 UNIVERSITY AVE 1113999 68416 $ 375.00 163668 Total $ 5,593.03
163669 09/18/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-118234 AUTO PARTS 1115402 61265 $ 316.31 163669 09/18/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-118235 AUTO PARTS 1115402 61265 $ 282.17 163669 Total $ 598.48
ITEM NO. 5.
ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 09-18-26
CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163670 09/18/2026 ODP BUSINESS SOLUTIONS 478970869001 SUPPLIES 6335423 61112 $ 17.49 163670 09/18/2026 ODP BUSINESS SOLUTIONS 478971141001 SUPPLIES 6335423 61112 $ 28.27 163670 09/18/2026 ODP BUSINESS SOLUTIONS 478971141001 SUPPLIES 6335423 61112 $ 11.45 163670 09/18/2026 ODP BUSINESS SOLUTIONS 480925660001 SUPPLIES 6335423 61112 $ 63.34 163670 09/18/2026 ODP BUSINESS SOLUTIONS 480925992001 SUPPLIES 1115201 61111 $ 4.74 163670 09/18/2026 ODP BUSINESS SOLUTIONS 481013191001 SUPPLIES 1115201 61111 $ 15.59 163670 09/18/2026 ODP BUSINESS SOLUTIONS 481013613001 SUPPLIES 6335423 61112 $ 8.75 163670 09/18/2026 ODP BUSINESS SOLUTIONS 480925660001-01 SUPPLIES 1115201 61111 $ 16.71 163670 Total $ 166.34
163671 09/18/2026 OFFICE RELIEF, INC. INV29088688 SUPPLIES 6122202 62322 $ 157.74 163671 Total $ 157.74
163672 09/18/2026 OPERATION FREEDOM PAWS 25804 081526-082726 BOARDING 1114301 64282 $ 804.00 163672 Total $ 804.00
163673 09/18/2026 ERIK HAYDEN REFUND-U-24-016 REFUND U-24-016 14789 OKA ROAD 1115202 44623 $ 923.00 163673 09/18/2026 ERIK HAYDEN REFUND-U-24-016 REFUND U-24-016 14789 OKA ROAD 1113202 44412 $ 125.90 163673 09/18/2026 ERIK HAYDEN REFUND-U-24-016 REFUND U-24-016 14789 OKA ROAD 6212502 44431 $ 50.36 163673 09/18/2026 ERIK HAYDEN REFUND-U-24-016 REFUND U-24-016 14789 OKA ROAD 1113201 42413 $ 1,259.00 163673 Total $ 2,358.26
163674 09/18/2026 POSTMASTER 091026-697 PO BOX 697 RENEWAL 1112301 61114 $ 284.00 163674 Total $ 284.00
163675 09/18/2026 RILEY J FRIZZELL 09/22/26-09/24/26 PER DIEM REIMBURSEMENT - SKYDIO ASCEND 2026 1114303 64111 $ 140.50 163675 Total $ 140.50
163676 09/18/2026 RURAL SUPPLY HARDWARE INC 8025 SUPPLIES 1115401 61275 $ 69.20 163676 09/18/2026 RURAL SUPPLY HARDWARE INC 8028 SUPPLIES 1115301 61214 $ 64.04 163676 Total $ 133.24
163677 09/18/2026 SAN JOSE WATER COMPANY 12830-090226 070126-090126 SERVICE 2325502 62613 $ 550.26 163677 09/18/2026 SAN JOSE WATER COMPANY 19662-090226 070126-090126 SERVICE 1115301 62613 $ 277.80 163677 09/18/2026 SAN JOSE WATER COMPANY 27525-090226 070126-083126 SERVICE 1115301 62613 $ 470.07 163677 09/18/2026 SAN JOSE WATER COMPANY 27567-090226 070126-083126 SERVICE 1115301 62613 $ 870.94 163677 09/18/2026 SAN JOSE WATER COMPANY 33918-090226 070126-090126 SERVICE 1115301 62613 $ 1,231.36 163677 09/18/2026 SAN JOSE WATER COMPANY 47462-090226 070126-083126 SERVICE 1115301 62613 $ 2,162.59 163677 09/18/2026 SAN JOSE WATER COMPANY 70138-090226 070126-090126 SERVICE 1115301 62613 $ 2,026.22 163677 09/18/2026 SAN JOSE WATER COMPANY 87531-090226 070126-083126 SERVICE 1115301 62613 $ 1,059.83 163677 09/18/2026 SAN JOSE WATER COMPANY 90007-090226 070126-090126 SERVICE 2365506 62613 $ 663.42 163677 09/18/2026 SAN JOSE WATER COMPANY 93186-090226 070126-083126 SERVICE 1115301 62613 $ 863.08 163677 Total $ 10,175.57
163678 09/18/2026 SAN JOSE WATER COMPANY 02813-090226 070126-090126 SERVICE 1115301 62613 $ 168.80 163678 09/18/2026 SAN JOSE WATER COMPANY 06000-090226 070126-083126 SERVICE 1115301 62613 $ 268.38 163678 09/18/2026 SAN JOSE WATER COMPANY 34909-090226 070126-083126 SERVICE 1115301 62613 $ 166.08 163678 09/18/2026 SAN JOSE WATER COMPANY 56189-090226 070126-083126 SERVICE 1115301 62613 $ 273.33 163678 09/18/2026 SAN JOSE WATER COMPANY 76230-090226 070126-083126 SERVICE 2315501 62613 $ 262.02 163678 Total $ 1,138.61
163679 09/18/2026 SEQUOIA ECOLOGICAL CONSULTING INC 000002026488 060126-063026 SERVICES 4218507 82303 $ 39.19 163679 09/18/2026 SEQUOIA ECOLOGICAL CONSULTING INC 000002026488 060126-063026 SERVICES 4118507 82303 $ 13.06 163679 Total $ 52.25
163680 09/18/2026 SERVICE STATION SYSTEMS 2350839 DO INSPECTION 1115402 61266 $ 225.00 163680 Total $ 225.00
ITEM NO. 5.
ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 09-18-26
CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163681 09/18/2026 SPECIALIZED ELEVATOR CORP 522875 081926 AND 082026 SERVICE 6335423 63353 $ 2,747.95 163681 Total $ 2,747.95
163682 09/18/2026 UNDERGROUND SERVICE ALERT OF 176435USB26 070126-063027 CA STATE FEE FOR REGULATORY COSTS 1115201 63356 $ 3,389.76 163682 Total $ 3,389.76
163683 09/18/2026 SUMMIT UNIFORMS LLC 45816 ADD VELCRO K TEDESCO 1114201 61165 $ 5.50 163683 Total $ 5.50
163684 09/18/2026 SYN TECH SYSTEMS INC 339439 SUPPLIES 1115402 61265 $ 2,755.01 163684 Total $ 2,755.01
163685 09/18/2026 TOWN EMPLOYEES ASSOCIATION 111748 TEA DUES PPE 09/12/26 111 21261 $ 1,345.90 163685 Total $ 1,345.90
163686 09/18/2026 URBAN37 INC 2287 082126 SERVICE 1113999 68416 $ 702.73 163686 09/18/2026 URBAN37 INC 2288 082126 SERVICE 1113999 68416 $ 340.52 163686 09/18/2026 URBAN37 INC 2289 082126 SERVICE 1113999 68416 $ 340.52 163686 09/18/2026 URBAN37 INC 2290 082126 SERVICE 1113999 68416 $ 330.00 163686 09/18/2026 URBAN37 INC 2301 082626 SERVICE 1113999 68416 $ 1,447.96 163686 Total $ 3,161.73
163687 09/18/2026 WILLIAM JEFFREY HEID 090826-131 052526-052626 131 ALBRIGHT WAY 1113999 68419 $ 975.00 163687 Total $ 975.00
Grand Total $ 148,893.07
ITEM NO. 5.
Town of Los Gatos Check Date 09/18/26 Total Number of Employees Location Total Payroll
1101 - TOWN COUNCIL 1,425.00 5
1301 - TOWN ATTORNEY 11,983.00 1
2101 - TOWN MANAGER 39,175.00 7
2105 - EMERGENCY PREPAREDNESS 11,165.00 3
2106 - ECONOMIC VITALITY 5,990.00 1
2201 - HUMAN RESOURCES 22,825.00 3
2301 - FINANCE 49,891.00 8
2401 - CLERK ADMINISTRATION 17,018.00 3
2501 - INFORMATION TECHNOLOGY 17,233.00 3
3101 - COMMUNITY DEVELOPMENT 120,443.00 22
4101 - POLICE 456,121.00 59
5101 - PARKS AND PUBLIC WORKS 181,081.00 41
7101 - LIBRARY 69,273.00 26
1,003,623.00 182
ATTACHMENT 3
ITEM NO. 5.
PREPARED BY: Kristina Alfaro
Administrative Services Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/06/2026
ITEM NO: 6
DATE: September 28, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Approve the Finance Commission’s Updated 2026 Work Plan RECOMMENDATION: Approve the Finance Commission’s Updated 2026 Work Plan.
FISCAL IMPACT:
No fiscal impact is associated with this item.
STRATEGIC PRIORITY:
This item pertains to the Core Goal of Good Governance. It does not directly address a 2025- 2027 Strategic Priority.
BACKGROUND:
In order to provide Town Commissions/Committees/Boards (Commissions) clarity from the Town Council regarding their work, staff recommend the Town Council reviews and approve each Commission’s work plan for the year. This will ensure Council support, efficient use of Commissioners’ time, and sufficient staff resources for the Commission’s projects in 2026.
DISCUSSION:
Work plans are drafted by the Commission’s staff liaison, taking workload, time commitment, changes in legislation, and alignment with Council priorities into consideration.
On February 3, 2026, the Town Council approved the Finance Commission’s 2026 work plan.
Since that time changes in meeting dates and deliverables have changed. Staff presented an update work plan as part of the September 14, 2026, Finance Commission meeting at the
ITEM NO. 6.
PAGE 2 OF 2
SUBJECT: Approve the Finance Commission’s Updated 2026 Work Plan DATE: October 6, 2026
request of the Finance Commission Chair. The Commission’s recommendation was not to bring the updated work plan for the Town Council’s approval but to received it and transmit it to the Town Manager.
Staff recommends that the Town Council approve the updated work plan as the intent of the work plan is to ensure Council support, efficient use of Commissioners’ time, and sufficient staff resources for the Commission’s projects.
Proposed edits to the work plan include:
Updating the timing for the Fiscal Condition Analysis, Fiscal Impact Analysis, and Asset Liability Management Studies.
Adding a review of Community Grants.
Reassessing the timing of the Council Priority Scorecard based on the Commission’s meeting schedule and workload.
If the updated work plan is approved, the October and November meeting agendas could include several significant discussion items, including the Community Grants, Council Priority Scorecard, and NHA Advisor final reports.
Staff feel that the items contained in this updated work plan are manageable for 2026.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Finance Commission’s Update 2026 Work Plan Clean
2. Finance Commission’s Updated 2026 Work Plan Redline
ITEM NO. 6.
Items Projects Assignments Frequency Finance Commission Target Date(s) Notes 1 Fiscal Condition Analysis, Fiscal Impact Analysis,
and Asset Liability Management Studies
Review the Assumptions and final results of the Fiscal
Condition Analysis, Fiscal Impact Analysis, and Asset
Liability Management Studies
As Needed 2/9/2026; 4/13/2026, 6/8/2026, 8/10/2026 and
10/12/2026
Staff is currently working with a
Consultant on the studies.
2 Investment Policy Review current policy and recommend changes 6/8/2026 The Fiscal Condition Analysis, Fiscal
Impact Analysis, and the Asset Liability
Management studies will inform the
recommended policy changes
3 IRS Section 115 Pension Trust and OPEB Trust
Investment Policy
Review current policy and recommend changes 10/12/2026
The Fiscal Condition Analysis, Fiscal
Impact Analysis, and the Asset Liability
Management studies will inform the
recommended policy changes
4 Council Priority Scorecard
Continue the work of the ad hoc committee to discuss
framework for a Council scorecard and start developing
top level metrics for consideration which can be
supported by existing data systems.
9/14/2026, 10/12/2026, 11/9/2026
This process will be iterative to be able
to frame appropriate measures which
can be readily maintained.
5 Five-Year Capital Improvement Program
Establish the structure for a multi-years CIP which will focus on identifying current and future capital needs,
determine the funding level required to support those
needs, and start moving towards a comprehensive
approach to capital planning.
3/9/2026
This will be a multiyear process due to
the many pieces that need to be
integrated for a comprehensive capital
plan.
6 Community Grants Review Review the Town's current Community Grant Process and provide feed back and recommendations for Town Council As needed 11/9/2026 A Five-Year Forecast Discuss Assumptions for the Five-Year Forecast Annually 2/9/2026; 3/9/2026 Report Back on Council Action B Operating and Capital Budget Review and Make Recommendations on the Proposed Annual Budgets Annually 4/27/2026; 5/4/2026; 5/11/2026 (Published on 4/20/2026 - No Meeting) C Mid-Year Budget Review and Make Recommendation on the Mid-Year Report Annually 2/9/2026
D Audit Plan Review Pre-Audit Meeting Annually 8/10/2026 E Annual Comprehensive Financial Report Review and Make Recommendations on the Draft Annual Comprehensive Financial Report Annually 12/7/2026; 12/14/2026 F State Controller Financial Transaction Report Review and Make Recommendations on the Town Draft Financial Transaction Report Annually 1/12/2026
G Measure G Revenue and Expenditure Report Receive Measure G Revenue and Expenditure Report Annually 3/9/2026 H Single Audit Report Receive Single Audit Report if applicable Annually 4/13/2026 Multiyear Projects
Required by Town Code Section 2.50 or Other Council Policy FINANCE COMMISSION 2026 WORKPLAN - September 2026 Update 1 of 2
ATTACHMENT 1
ITEM NO. 6.
Items Projects Assignments Frequency Finance Commission Target Date(s) Notes I Financial Policies Review and Make Recommendations on the Investment Policy Annually 6/8/2026
J Financial Policies Review and Make Recommendation on the General Fund Reserve Policy As Needed 6/8/2026
K Investment Performance Receive Monthly Financial and Investment Report Monthly 1/12/2026; 2/9/2026; 3/9/2026; 4/13/2026; 5/11/2026;
6/8/2026; 8/10/2026; 9/14/2026; 10/12/2026;
11/9/2026; 12/14/2026
Consent Item
L Pension and OPEB Trust Funds Performance Receive Performance and Account Summary Reports for CERBT and CEPPT Quarterly 3/9/2026; 6/8/2026; 9/14/2026; 12/14/2026 Consent Item M CalPERS Actuarial Reports Receive CalPERS Annual Actuarial Reports Annually 10/12/2026 Consent Item N OPEB Actuarial Analysis Receive OPEB Actuarial Analysis Every Two Years 10/12/2026 O CalPERS Performance Receive CalPERS Public Employees' Retirement Fund (PERF) Preiminary Performance Report Annually 12/14/2026 Consent Item P Monthly Revenue, Expenditure and Vacancy
Reporting
Review and forward to Council monthly revenue,
expenditure and vacancy reports Monthly 9/14/2026
2 of 2 Page 174
ITEM NO. 6.
Items Projects Assignments Frequency Finance Commission Target Date(s) Notes 1 Fiscal Condition Analysis, Fiscal Impact Analysis,
and Asset Liability Management Studies
Review the Assumptions and final results of the Fiscal
Condition Analysis, Fiscal Impact Analysis, and Asset
Liability Management Studies
As Needed 2/9/2026; 4/13/2026, 6/8/2026, 8/10/2026 and
10/12/2026
Staff is currently working with a
Consultant on the studies.
2 Investment Policy Review current policy and recommend changes 6/8/2026 The Fiscal Condition Analysis, Fiscal
Impact Analysis, and the Asset Liability
Management studies will inform the
recommended policy changes
3 IRS Section 115 Pension Trust and OPEB Trust
Investment Policy
Review current policy and recommend changes 10/12/2026
The Fiscal Condition Analysis, Fiscal
Impact Analysis, and the Asset Liability
Management studies will inform the
recommended policy changes
4 Council Priority Scorecard
Continue the work of the ad hoc committee to discuss
framework for a Council scorecard and start developing
top level metrics for consideration which can be
supported by existing data systems.
10/12/2026, 11/9/2026
This process will be iterative to be able
to frame appropriate measures which
can be readily maintained.
5 Five-Year Capital Improvement Program
Establish the structure for a multi-years CIP which will focus on identifying current and future capital needs,
determine the funding level required to support those
needs, and start moving towards a comprehensive
approach to capital planning.
3/9/2026
This will be a multiyear process due to
the many pieces that need to be
integrated for a comprehensive capital
plan.
6 Community Grants Review Review the Town's current Community Grant Process and provide feed back and recommendations for Town Council As needed 11/9/2026 A Five-Year Forecast Discuss Assumptions for the Five-Year Forecast Annually 2/9/2026; 3/9/2026 Report Back on Council Action B Operating and Capital Budget Review and Make Recommendations on the Proposed Annual Budgets Annually 4/27/2026; 5/4/2026; 5/11/2026 (Published on 4/20/2026 - No Meeting) C Mid-Year Budget Review and Make Recommendation on the Mid-Year Report Annually 2/9/2026
D Audit Plan Review Pre-Audit Meeting Annually 8/10/2026 E Annual Comprehensive Financial Report Review and Make Recommendations on the Draft Annual Comprehensive Financial Report Annually 12/7/2026; 12/14/2026 F State Controller Financial Transaction Report Review and Make Recommendations on the Town Draft Financial Transaction Report Annually 1/12/2026
G Measure G Revenue and Expenditure Report Receive Measure G Revenue and Expenditure Report Annually 3/9/2026 H Single Audit Report Receive Single Audit Report if applicable Annually 4/13/2026 Multiyear Projects
Required by Town Code Section 2.50 or Other Council Policy FINANCE COMMISSION 2026 WORKPLAN - September 2026 Update 1 of 2 ATTACHMENT 2
ITEM NO. 6.
Items Projects Assignments Frequency Finance Commission Target Date(s) Notes I Financial Policies Review and Make Recommendations on the Investment Policy Annually 6/8/2026
J Financial Policies Review and Make Recommendation on the General Fund Reserve Policy As Needed 6/8/2026
K Investment Performance Receive Monthly Financial and Investment Report Monthly 1/12/2026; 2/9/2026; 3/9/2026; 4/13/2026; 5/11/2026;
6/8/2026; 8/10/2026; 9/14/2026; 10/12/2026;
11/9/2026; 12/14/2026
Consent Item
L Pension and OPEB Trust Funds Performance Receive Performance and Account Summary Reports for CERBT and CEPPT Quarterly 3/9/2026; 6/8/2026; 9/14/2026; 12/14/2026 Consent Item M CalPERS Actuarial Reports Receive CalPERS Annual Actuarial Reports Annually 10/12/2026 Consent Item N OPEB Actuarial Analysis Receive OPEB Actuarial Analysis Every Two Years 10/12/2026 O CalPERS Performance Receive CalPERS Public Employees' Retirement Fund (PERF) Preiminary Performance Report Annually 12/14/2026 Consent Item P Monthly Revenue, Expenditure and Vacancy
Reporting
Review and forward to Council monthly revenue,
expenditure and vacancy reports Monthly 9/14/2026
2 of 2 Page 176
ITEM NO. 6.
PREPARED BY: Kristina Alfaro
Administrative Services Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 09/01/2026
ITEM NO: 7
DATE: October 6, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Adopt a Resolution Amending the Town of Los Gatos Purchasing Policy (Policy 4-06) and Repeal the Previous Policy.
RECOMMENDATION: Adopt a resolution amending the Town of Los Gatos Purchasing Policy (Policy 4-06), repeal Resolution 1997-25 and all previous editions of the Town Purchasing Policy.
FISCAL IMPACT:
There is no direct fiscal impact associated with adoption of the proposed Purchasing Policy revisions. The revisions primarily clarify procurement procedures and compliance requirements. The Purchasing Policy continues to establish authorization levels, competitive procurement requirements, documentation requirements, and internal controls intended to support fiscal accountability.
STRATEGIC PRIORITY:
This item advances the Town’s Strategic Priority to ensure prudent financial management by maintaining clear procurement authority, consistent purchasing procedures, appropriate internal controls, and compliance with applicable Town, State, and Federal requirements.
BACKGROUND:
The Purchasing Policy establishes a decentralized purchasing system under which requesting departments implement procurement processes subject to policy limitations and the approval of the appropriate awarding authority. The Finance Department and Town Manager oversee the decentralized system.
ITEM NO. 7.
PAGE 2 OF 3
SUBJECT: Adopt A Resolution Updating the Town of Los Gatos Purchasing Policy (Policy 4-06).
DATE: October 6, 2026
Recommended minor revisions to this policy include minor language changes. In addition, per the Town Code Section 2.50.145, this policy should be adopted via resolution. In 2021, when this policy was adopted, a resolution was included but did not specify the policy adoption. As such, staff is bringing this policy revision to ensure compliance with the Town Code.
DISCUSSION:
The proposed revisions are intended to make targeted clarifications to Policy 4-06 rather than establish a new procurement system. The proposed resolution identifies three areas for amendment.
1. Signing Authority
The revised policy clarifies that the Town Manager is authorized to sign contracts and agreements up to and including $100,000.
2. Federal funding requirements
The revised policy expressly states that special rules apply to purchases made with Federal funds. The policy already recognizes that Federal procurement requirements may apply in addition to the Town's local procedures and specifically references Federal disaster grant procurement requirements under 2 CFR Part 200 in its emergency purchasing provisions.
3. Department of Industrial Relations registration for applicable public works contractors The revised policy clarifies that contractors completing applicable public works projects must be registered with the Department of Industrial Relations when the contract amount exceeds $25,000. The policy also requires applicable public works contractors to be properly licensed, provide a Tax Identification Number, and carry required liability and workers' compensation insurance.
CONCLUSION:
The proposed amendments provide targeted clarification to the Town's Purchasing Policy without changing the overall decentralized procurement framework or the existing competitive purchasing structure. Adoption by resolution will maintain the Town's Purchasing Policy in the form required by Town Code Section 2.50.145 and incorporate the identified clarifications regarding signing authority, Federal funding requirements, and applicable public works contractor registration.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
ITEM NO. 7.
PAGE 3 OF 3
SUBJECT: Adopt A Resolution Updating the Town of Los Gatos Purchasing Policy (Policy 4-06).
DATE: October 6, 2026
Attachments:
1. Resolution Updating the Purchasing Policy
2. Purchasing Policy, Policy 4-06 – Redline
3. Purchasing Policy, Policy 4-06 – Clean Copy
ITEM NO. 7.
RESOLUTION NO.
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN
OF LOS GATOS ADOPTING AN AMENDED TOWN
PURCHASING POLICY PURSUANT TO TOWN CODE
SECTION 2.50.145, AND REPEALING RESOLUTION 1997-25
WHEREAS, Town Code Section 2.50.145 requires the preparation and adoption of a Town Purchasing Policy by resolution of the Town Council; WHEREAS, in 1966 the Town Council adopted a Purchasing Policy by Resolution No. 1966-211;
WHEREAS, the Purchasing Policy was amended in 1994 by Resolution No. 1994-74 and again in 1997 by Resolution No. 1997-25;
WHEREAS, the Purchasing Policy was updated in 2008 and again in 2021; WHEREAS, minor amendments are needed to the Purchasing Policy to clarify contract signing authority, that special rules apply to purchases made using federal funds, and that specified public works project contractors must be registered with the Department of Industrial Relations.
NOW, THEREFORE, the Town Council of the Town of Los Gatos resolves as follows:
1. Exhibit A is hereby adopted as the Town Purchasing Policy effective immediately.
2. The Town Manager is directed to implement the provision of the Town Purchasing Policy.
3. The Town Manager, or their designee, is authorized to sign all approved contracts and agreements in amounts up to and including $100,000 in accordance with the amended Purchasing Policy.
4. Resolution 1997-25 and all previous editions of the Town Purchasing Policy are hereby repealed.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 6
th of October 2026, by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
ATTACHMENT 1
ITEM NO. 7.
SIGNED:
_______________________________
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
___________________________________
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ITEM NO. 7.
COUNCIL POLICY MANUAL
TITLE: Purchasing Policy POLICY NUMBER: 4-06
EFFECTIVE DATE: August 4, 2008 PAGES: 23
ENABLING ACTIONS: Ordinance 2325;
2021-052
REVISED DATES: 11/16/2021
APPROVED:
I. PURPOSE
The purpose of this Purchasing Policy is to define the policies and processes for the procurement of goods and services for the Town of Los Gatos in conformance with Federal and State codes and regulations and Town Code Sections 2.50.105 through 2.50.145. This policy establishes procurement authorization levels and provides uniform guidelines for procurement activities to ensure proper and efficient procurement activity.
II. SCOPE
The provisions of this policy shall apply to elected and appointed officials, Town employees, volunteers, and vendors seeking to do business with the Town. It identifies those with the authority and responsibility to procure on behalf of the Town, and addresses policies on matters including, but not limited to, the purchase of goods and services, public works projects, emergency purchases, Town contracts for services, and the disposition of surplus property.
III. CODE OF CONDUCT
All Town employees are responsible for impartially assuring fair and competitive access to Town procurement opportunities by responsible vendors. In addition, all employees shall conduct themselves in a manner that avoids any impropriety and that fosters the highest level of public confidence in the integrity of the Town’s purchasing system.
1. Conflict of Interest: No employee shall participate in a procurement when the employee knows that their spouse, domestic partner, child, stepchild, parent, stepparent or other close family member or friend will either benefit from the procurement and/or has an employment arrangement contingent on or will be affected by the procurement.
Small Town Service Community Stewardship Future Focus
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
2 of 23
POLICY NUMBER:
4-06
2. No Gifts or Gratuities: No Town employee shall solicit, demand, accept or agree to accept a gift of goods or services, payment, loan, advance, deposit of money, or employment offer presented, promised in return for, or in anticipation of favorable consideration in a Town procurement.
3. Conduct with Vendors: Conduct with vendors who provide goods or services to the Town shall be fair, open, and transparent. Town employees shall refrain from showing favoritism to vendors or being unduly influenced, safeguard confidentiality when required to do so, and select vendors on the basis of meeting appropriate and fair criteria. This includes purchase orders.
4. Accountability. Town employees shall abide by and be accountable for the codes of conduct established in this policy. Policy violations may result in disciplinary action and/or termination of employment.
IV. EXCLUSIONS/EXCEPTIONS
The provisions of this policy shall not apply to any of the following, with the exception of the requirements for a contract, as determined by the Town Attorney:
1. Employee benefits
2. Bond and trust account payments
3. Employee reimbursements
4. Escrow payments
5. Fuel (gasoline/diesel)
6. Insurance
7. Membership/dues
8. Media advertisements
9. Offsite training expenses
10. Pass-through payments
11. Postage
12. Refunds
13. Travel expenses
14. Utility payments
15. Contracts governed by any State or Federal law which prescribes a different procedure
16. Goods or services accepted in compliance with the terms and conditions of a grant, gift, or bequest to the Town
V. DEFINITIONS
For purposes of this policy, the following words and phrases shall be interpreted as follows:
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
3 of 23
POLICY NUMBER:
4-06
Awarding Authority – The governing body or staff person authorized to approve the purchase of goods and services on behalf of the Town based on level of review and/or predetermined monetary amounts established by this policy.
Bid – Formal written offer, in response to a solicitation, to furnish goods including supplies, equipment, and vehicles, and/or services in conformity with the specifications, delivery terms, and conditions required at a guaranteed maximum cost.
Change Order – A document signed and approved by an authorized Town employee and the Finance Department that modifies the terms of the original approved purchase order and/or agreement in scope, cost, schedule, account coding, and/or other similar factor.
Contract or Agreement – A written legal document between two or more parties, which documents agreed upon particulars, including some or all of the following: scope of work; deliverables; milestones or measures; time and insurance requirements; use of equipment or property; fees or payments.
Cost – As applied to a single transaction for the purchase of goods or services, means the total amount to be expended by the Town, inclusive of sales or use tax. Cost includes amounts expended for delivery, set-up, testing, and included maintenance services.
Department Directors – Means and includes the Assistant Town Manager, Community Development Director, Human Resources Director, Finance Director, Library Director, Police Chief, Information Technology Manager, Town Clerk, and Parks and Public Works Director. In the case of vacancy or absence, to mean the interim or acting Director.
Department Purchasing Representative – A Town employee designated by their Department Director as having the authority to solicit bids or proposals and place orders with vendors on behalf of their Department, subject to the limitations established in this Policy, Town Code Sections 2.50.105 through 2.50.145, and the approval of the appropriate awarding authority.
Disposable Kitchen and Office Supplies – Include, but are not limited to: coffee cups, plates, pens, binders, trash, and recycle liners.
Emergency – An emergency is a sudden, unexpected occurrence that poses a clear and imminent danger and requires immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services, as declared by the Director of Emergency Services/Town Manager.
Employee – An individual who performs services for the Town as an elected or appointed official or as a compensated employee of the Town or of a temporary services agency retained by the Town.
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
4 of 23
POLICY NUMBER:
4-06
Goods – Includes supplies, materials, and equipment to be furnished or used by any Town Department, including items purchased by the Town and furnished to contractors for use in public works projects.
Independent Contractor – An individual or business with whom the Town contracts to provide services. An independent contractor differs from an employee in that the Town specifies the deliverable that is to result from the contracted work but does not have the right to direct or control the manner in which the work is performed.
Insurance – All vendors engaged in services on Town property, or whenever there may be an inherent risk of personal injury in the activity involved, regardless of the cost of the service, are required to maintain public liability insurance, property damage insurance, and workers compensation insurance, in accordance with State law, for each occurrence naming the Town of Los Gatos as additional insured. A Certificate of Insurance must be filed with the Town prior to engaging in any operation of activity set forth in the purchase order. If a vendor is providing a good such as equipment, insurance may be required if the purchase entails set-up, testing, and/or maintenance as part of the purchase or lease. Refer to the insurance requirements in effect at the time of procurement. Insurance requirements are maintained by the Town Clerk Department and Town Attorney. Exceptions to the standard insurance requirements must be authorized by the Town Attorney. The purchasing Department should request insurance from the vendor and ensure current insurance documents are on file with the Town.
Maintenance Work – As defined in Section 22002 of the Public Contract Code, and means duties that include any or all of the following: (a) routine, recurring and usual work for the preservation or protection of any publicly owned or operated facility, (b) minor repainting, (c) resurfacing of streets and highways at less than one inch, (d) landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems, or (e) work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems.
Paper Products – Include, but are not limited to: paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging folders, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51).
Printing and Writing Papers – Include, but are not limited to: copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR Section 18982(a)(54).
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
5 of 23
POLICY NUMBER:
4-06
Professional Services – Services which require the exercise of professional discretion and independent judgment, based on an advanced or specialized knowledge, expertise or training gained by formal studies or experience. Examples of professional service providers include appraisers, architects, attorneys, engineers, instructors, land surveyors, physicians, information technology services, graphic designers, construction inspectors, etc.
Public Works Project – As defined in Section 22002 of the Public Contract Code, and means any of the following, but does not include “maintenance work”:
1. Constructions, reconstruction, erection alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; or
2. Painting or repainting of any publicly owned, leased, or operated facility.
Purchase Order – An approved purchase order represents a written agreement for the purchase of supplies or services, documenting specifications and costs. Purchase orders encumber funds in the accounting systems to ensure the availability of funds under the agreement. Purchase orders are required for purchases over $3,000.
Purchase Requisition – A purchase requisition form is prepared by staff, electronically through the Town’s financial software system. A purchase requisition includes vendor information, business license and insurance information, and purchase specifications. After Departmental approval, the purchase requisition is submitted to the Finance Department for approval and conversion into a purchase order.
Quote – A written promise from a vendor or provider guaranteeing the cost of specific goods, including supplies, materials, equipment, or services.
Recovered Organic Waste Products – Products made in California, landfill-diverted recovered Organic Waste processed in a permitted or otherwise authorized facility, or as otherwise defined in 14 CCR Section 18982(a)(60).
Recycled-Content Paper – Paper products and printing and writing paper that consists of at least 30 percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61).
Senate Bill 1383 (SB 1383) – Senate Bill approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane admissions reduction targets in a Statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time.
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
6 of 23
POLICY NUMBER:
4-06
Senate Bill 1383 Regulations (SB 1383 Regulations) – The Short-Lived Climate Pollutants:
Organic Waste Reduction regulations developed by CalRecycle that created 14 CCR, Division 7, Chapter 12 and amended portions of the regulations of 14 CCR and 27 CCR.
Services (General) – Work performed or labor, time and effort expended by an independent contractor, including professional services and excluding contracts for public works projects.
Examples include custodial services and building and equipment maintenance.
Surplus Property – Any Town property that is no longer needed or useable by the holding Department.
VI. DECENTRALIZED PURCHASING SYSTEM
The Town has adopted a decentralized purchasing system pursuant to Town Code Section
2.50.110. This means that for most purchases, requesting Departments can directly implement the appropriate procurement process, subject to the limitations established in this policy and subject to the approval of the appropriate awarding authority. The Finance Department and Town Manager oversee this process. Nothing precludes staff from seeking procurement assistance from the Finance Department or Town Manager, especially to clarify policies, processes, and procedures.
VII. BUSINESS LICENSES
Pursuant to Town Code Chapter 14, a Town business license is required for vendors located within Town limits, or if an agent of the business comes into Town to conduct business. The Department initiating the purchase or contract for services is responsible for ensuring that the vendor has a business license. Common carriers only delivering goods and other government entities less than two times per quarter are not subject to the business license certification requirement.
VIII. TYPES OF PURCHASES
For the purpose of this policy, purchases fall into one of the following categories: general purchase of goods and/or services, public works projects, and emergency purchases. Special rules apply to purchases made with federal funds.
As a general rule, purchases shall be based on a competitive procurement process. The rigor of the procurement process increases with the dollar value of the purchase. Although formal bidding can result in lower purchase prices, there are costs associated with the process in terms of time and effort and smaller value procurements may not attract vendor interest in a rigorous process. For that reason, the smaller the purchase, the lesser the requirements in procurement process and vice versa.
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
7 of 23
POLICY NUMBER:
4-06
IX. PURCHASES OF GOODS AND/OR SERVICES
Under no circumstance can any purchase be split or separated into smaller components to determine the appropriate awarding authority or for any other purpose.
1. Goods and services costingPurchases up to and including $3,000 (including tax, shipping, and handling):
a. May be approved at the staff level by a Department Purchasing Representative as designated by Department Directors.
b. No Purchase Order is required prior to the purchase being made or work commencing.
c. For a service purchase, contract, insurance, and business license are required.
See Section XIV of this policy for more information.
d. A Town-issued purchasing credit card may be used to pay, subject to purchasing limits and the rules set forth in the Town Procurement Card Procedure.
2. Good and services costingPurchases over $3,000 and up to and including $50,000 (including tax, shipping, and handling):
a. Department Director must approve purchase.
b. A purchase order is required prior to purchase being made or work commencing. c. At least three quotes must be solicited from different vendors and supporting documentation must be submitted with the purchase requisition. d. For purchase of goods that are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. For purchase of services or goods that are not standardized or not of uniform quality or other factors in addition to cost must be taken into account, and the purchase is not awarded to the vendor with the lowest quote, an explanation of why and any documentation to support the decision must be submitted with the purchase requisition. e. For a service purchase, contract, insurance, and business license are required.
See Section XIV of this policy for more information.
f. For information regarding sole source or single source vendors, see Section XV of this policy.
3. Goods and services costingPurchases over $50,000 and up to and including $100,000 (including tax, shipping, and handling):
a. Town Manager, or Finance Department designee, must approve purchase. b. A purchase order is required prior to purchase being made or work commencing. c. For purchase of goods that are standardized or of uniform quality, a Formal Bid Procedure as outlined in Town Code Section 2.50.140 shall be followed. For purchase of services or goods that are not standardized or not of uniform quality or other factors in addition to cost must be taken into account, a Request for Proposal Process as outlined in Town Code Section 2.50.141 shall be followed
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
8 of 23
POLICY NUMBER:
4-06
(see Section XIII of this policy for more information). This excludes public works projects - for bidding methods related to public works projects, see Section X of this policy.
d. Vendor evaluation and selection criteria must be clearly outlined and presented with the purchase requisition when applicable.
e. For a service purchase, contract, insurance, and business license are required.
See Section XIV of this policy for more information.
f. For information regarding sole source or single source vendors, see Section XV of this policy.
4. Goods and services costing over $100,000:
a. Town Council must approve purchase.
b. A purchase order is required prior to the purchase being made or work commencing.
c. For purchase of goods that are standardized or of uniform quality, a Formal Bid Procedure as outlined in Town Code Section 2.50.140 shall be followed. For purchase of services or goods that are not standardized or not of uniform quality or other factors in addition to cost must be taken into account, a Request for Proposal Process as outlined in Town Code Section 2.50.141 shall be followed (see Section XIII of this policy for more information). This excludes public works projects - for bidding methods related to public works projects, see Section X of this policy.
d. Vendor evaluation and selection criteria must be clearly outlined and presented to the Town Council when applicable.
e. For a service purchase, contract, insurance, and business license are required.
See Section XIV of this policy for more information.
The Town Manager, or their designee, is authorized to sign all approved contracts and agreements in amounts up to and including $100,000.
X. PUBLIC WORKS PROJECTS
For public works projects as defined in this policy and the Public Contract Code:
1. The Town has adopted the California Uniform Public Construction Cost Accounting Act (the Act), per Town Code Section 2.50.131. These procedures are intended to provide uniformity of cost accounting standards for construction work performed or contracted by public entities in the State and a method for the bidding of public works projects.
This section is designed to provide a synopsis of the general provisions of the Act and adopt local administrative procedures to comply with the intent of the Act. The Act should be consulted for detailed information (see the California State Controller’s website at: https://sco.ca.gov/ard_cuccac.html and the Manual, currently at:
www.sco.ca.gov/Files-ARD-Local/CUCCAC_Manual.pdf). Every five years, the Act
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
9 of 23
POLICY NUMBER:
4-06
Commission reviews the informal bid limits for inflation and other factors to determine whether adjustments should be made. If an adjustment is made, the State Controller notifies the affected public agencies.
2. Generally, the Act permits the Town to solicit bids and award contracts for public works projects as follows:
a. Public project work in the amount defined in the Act (currently $60,000) or less may be performed by force account using the Town’s own staff resources, or by negotiated contract, or by purchase order (Section 22032(a)) with no bid requirement.
b. Public projects in the amount defined in the Act (currently $200,000) or less may use the informal bidding procedures set forth in Section 22032(b) of the Act. c. Public projects at a cost defined in the Act (currently more than $200,000) must use formal bidding procedures to let the contract pursuant to Public Contract Code Section 22032(c).
d. Contractors List: At least once per calendar year, the Town must establish a new list or update its existing list of qualified contractors by mailing, faxing, or emailing written notice to all construction trade journals designated for that Agency under Public Contract Code Section 22036. The notice must invite all licensed contractors to submit the name of their firms to the Town for inclusion on the Town’s list of qualified bidders for the following 12 months. The Town can choose a specific date in which to renew the list of qualified contractors and may add a contractor to the list at any time during the year pursuant to the Act. e. Maintenance work, as defined in this policy and the Public Contract Code, is separate and distinct from public works projects and does not fall under the Act. f. All requirements of the Act, as amended from time to time, shall apply to this Policy.
3. Procedures
a. Development of Plans and Specifications
i. The Department will prepare plans and specifications that will permit the widest opportunity to prospective bidders to respond to the request for bids based on the specifications. Prior to the plans and specifications, the insurance requirements and legal aspects for the project must be reviewed and approved by the Town Attorney.
ii. Bid bonds, performance bonds, and payment bonds may be required in amounts stated in the specifications.
b. Solicitation of Bids and Proposals
i. Informal Bids: A notice inviting informal bids shall be prepared, describing the project in general terms, how to obtain more detailed information about the project, and state the time and place for the submission of bids. The notice shall be mailed, not less than 10 calendar
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
10 of 23
POLICY NUMBER:
4-06
days before bids are due, either to all Contractors on the Contractors List for the category of work to be bid, or to all construction trade journals as specified by the Act Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the Department soliciting bids, provided, however:
1. If there is no Contractors List maintained by the Town for the particular category or work to be performed, the notice shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission.
2. If the product or service is proprietary in nature such that it can only be obtained from a certain contractor or contractors, the notice may be sent exclusively to such contractor or contractors. ii. Formal Bids: Notices describing the project, stating where to obtain more information, the time and place for submitting sealed bids, and their opening shall be pursuant to Section 22037:
1. Published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation in the Town’s jurisdiction;
2. Sent electronically, if available, by either facsimile or e-mail to all construction trade journals specified in Section 22036 at least 15 days before the date of opening of bids;
3. Other notice, if necessary or desired by the Town.
iii. Rejections of Bids: In its discretion, the Town may reject any bids presented after re-evaluating its cost estimates of the project and furnishing written notice to an apparent low bidder. The Town shall have the option of either of the following:
1. Abandoning the project;
2. Re-advertising for bids in the manner described above; or
3. The Council may override the requirement for bidding if it determines that the public project will be performed more economically by the Town without a contract, or that materials and supplies can be purchased at a lower price in the open market, or if no bids are received through the formal or informal procedure, the project may be performed by Town employees. iv. Award of Contract
1. Contracts valued over $100,000 shall be awarded by Town Council.
2. Contracts valued up to and including $100,000 may be awarded by the Town Manager or designee.
3. If all bids received through an informal bidding process are in excess of the amount defined in the Act (currently $200,000) as requiring a formal bid process, the Town Council may, by
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
11 of 23
POLICY NUMBER:
4-06
adoption of a resolution by a four-fifths vote, award the contract at the amount defined in the Act (currently $212,500) or less, to the lowest responsible bidder, if it determines the cost estimate of the Town was reasonable pursuant to Section 22034. If the Council does not award the contract, but wants to proceed with the project, the specifications must be reviewed and formal bids solicited.
v. Monitoring and Administration
1. Public works projects must be bid in accordance with the California Uniform Public Construction Cost Accounting Act. a. Public works projects must be awarded to the lowest
responsible bidder.
b. Contracts over $3,000 require a purchase order prior to purchase being made or work commencing unless otherwise authorized as an emergency purchase.
2. Anyone working on a public works project must be paid prevailing wages as determined by the California Department of Industrial Relations.
3. Contractors completing public works projects must be properly licensed by the State of California, provide a Tax Identification Number, and carry the required liability and workers’
compensation insurance and must be registered with the
department of Industrial Relations if the contract amount exceeds $25,000.
XI. EMERGENCY PURCHASES
In a declared emergency, essential goods and services may need to be obtained outside the processes and authorities established in this Policy. A separate Emergency Procurement Policy identifies when the Town is able to acquire the goods and services required to address an immediate threat to life-safety, public health, and property. The Policy allows for the necessary flexibility during the immediate response phase of a disaster while still maintaining an effective purchasing process and complying with applicable local and state purchasing laws. Where the Town is included in a major disaster or emergency declared by the President of the United States, this Policy also assures that Town procurements comply with Federal regulations applicable to Federal disaster grant reimbursement as defined in Title 2 of the Code of Federal Regulations, Part 200 (2 CFR Part 200).
In a non-declared emergency, when purchases are immediately necessary for the preservation of life, property, public health, or continued operation of a Department, the Town Manager must approve the purchase. Once the Finance Department receives Town Manager approval, a purchase order will be issued. All requirements, including obtaining an executed agreement,
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
12 of 23
POLICY NUMBER:
4-06
business license, and insurance should be completed after the fact by the Department. Failure to complete necessary procedures before the good/service were needed does not constitute an emergency.
XII. PREFERENCE FOR LOCAL AND MINORITY, DISABLED, AND WOMAN‐OWNED
BUSINESSES
It is the intent of the Town to ensure full and equitable opportunities for minority business enterprises, women business enterprises, disabled business enterprises, and local businesses.
For the purchase of goods or services, when two or more proposals, bids, or quotes are the same, in unit, quality, service, and total cost, preference shall be given to local businesses who operate within the Town of Los Gatos limits, minority business enterprises, women business enterprises, and disabled business enterprises.
1. Preference shall be given if the quote for service or taxable good is:
a. Up to and including $10,000 and is within 5% of the lowest quote b. More than $10,000 and up to $500,000 and is within 3% of the lowest quote c. More than $500,000 and up to $1,000,000 and within 2% of the lowest quote d. More than $1,000,000 and within 1% of the lowest quote
2. A local business shall be defined as a vendor or contractor who has a fixed place of business in Town limits and the point of sale occurs within Town limits, is current in the payment of their business license fee, is in compliance with Town laws, and does not owe any money to the Town.
3. The Town will take all necessary affirmative steps to assure that minority businesses, women business enterprises, disabled business enterprises, and labor surplus area firms are used when possible, including those identified in 2 CFR Section 200.321:
a. Placing qualified small and minority businesses and women’s business enterprises on solicitation lists;
b. Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources;
c. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women’s business enterprises;
d. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women’s business enterprises;
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
13 of 23
POLICY NUMBER:
4-06
e. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
f. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in this section.
4. The preference does not prohibit the Town from basing purchasing decisions on the quality of goods/services.
XIII. FORMAL BIDDING PROCEDURES AND REQUEST FOR PROPOSAL (INCLUDING REQUEST FOR INFORMATION, REQUEST FOR STATEMENT OF QUALIFICATIONS, ETC.)
PROCESS
1. Formal Bidding Procedures. All purchases for goods of a standardized or uniform quality in excess of $50,000, except public works projects, are subject to a Formal Bid Procedure as outlined in Town Code Section 2.50.140. When competitive bids are required:
a. Notice inviting bids shall be published at least 14 days before the opening of bids. Notice shall be published at least twice in a newspaper of general circulation in Town, posted on the Town bulletin boards and website, and solicited from all vendors on any relevant bidders’ list. The notice should include the details of where to submit bids (Clerk Department) and the date, time, and location of the bid opening.
b. When deemed necessary by the purchasing Department, bidder’s security may be prescribed. Bidders shall be entitled to return of bid security provided that a successful bidder shall forfeit bid security upon refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed, unless the Town is responsible for the delay. The awarding authority may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest bidder, the amount of the lowest bidder’s security being applied by the Town to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. c. Sealed bids shall be submitted to the Town Clerk and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection during regular business hours for at least 30 calendar days. d. Contract shall be awarded by appropriate written notice to the lowest cost, responsible, and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids.
e. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising the bids, the awarding authority may accept the one it chooses or
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
14 of 23
POLICY NUMBER:
4-06
accept the lowest bid made by negotiation with the bidders at the time of the bid opening.
f. An invitation for bids may be cancelled, or any bids may be rejected in whole or in part at Town discretion with or without showing of good cause. g. The awarding authority shall have authority to require a performance bond before entering into a contract in such amount as it shall find reasonably necessary to protect the best interests of the Town. If a performance bond is required, the form and amount of the bond shall be described in the notice inviting bids.
h. Any participating bidder may file an appeal/protest of a contract award or proposed contract award. The protest or appeal must be made in writing within 10 days of award notification and contain at least the following information:
ii. The name, address, email, and phone number of the protester. iii. The signature of the protester.
iv. The bid number and date of bid closing.
v. A statement of the legal grounds on which the appeal is based, including all information relevant to the bid.
i. The awarding authority may advise against a formal bidding process due to a significant business purpose or disruption of services.
2. Requests for Proposals Process.
a. Purchases for services and goods not standardized or not of uniform quality or requiring other factors in addition to cost to be taken into account, in excess of $50,000, except public works projects, are subject to a Request for Proposal Process as outlined in Town Code Section 2.50.141. When a Request for Proposal process is used:
i. The following information should be included in the Request when relevant: submittal deadline, contact information, introduction, background, scope of work, payment details, information to be submitted, timeline, evaluation criteria, insurance requirements, disqualifications, contract terms and conditions, and the public nature of materials submitted.
ii. Any dollar amount may be used.
iii. Proposals shall be submitted to the designated Town personnel electronically or in a sealed envelope prior to the deadline. iv. The purchasing Department shall solicit, whenever possible, at least three competitive proposals.
v. The Town may utilize various other accepted requests for procurement in place of a Request for Proposal, including a Request for Information, Request for Statement of Qualifications, or others as deemed appropriate.
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
15 of 23
POLICY NUMBER:
4-06
vi. The Request shall be posted online at least 10 days in advance, unless a shorter timeframe is warranted.
vii. Any interested vendors shall be treated fairly and given identical information and an equal opportunity to compete.
viii. Once responses are received, the proposals will be confidentially evaluated and scored in accordance with the established criteria.
Interviews, presentations, site visits, etc. may be conducted depending on the nature of the procurement.
ix. When a top-rated proposer is identified, good faith negotiations will commence. If an agreement cannot be reached in consideration of cost and/or scope, the next highest-rated proposer will be engaged and so on, until a mutually acceptable agreement is reached.
XIV. CONTRACTS
Contracts are required for the purchase of services.
1. A contract may be entered into for any period of time deemed to be in the best interest of the Town, provided that the term of the contract and renewal provisions are included in the original solicitation process. Contracts committing the Town over five fiscal years are not recommended and should be reviewed and approved by the awarding authority on a case-by-case basis.
2. Contracts in excess of one year shall include a provision automatically terminating the contract in the event that the Town Council does not budget funds to pay the contract in future years.
3. Insurance, as defined in this policy, is required for any vendor in connection with a contract that involves service performed on Town property.
4. If a vendor is providing a good such as equipment, a contract may be required if the purchase also entails a service such as set-up, testing, and/or maintenance as part of the purchase or lease.
5. All contracts must be approved as to form by the Town Attorney and routed through the Town’s standard contract routing process, registered by the Town Clerk and reviewed, at a minimum, by the Finance Department and Town Manager’s Office. The Town Manager will sign all contracts on behalf of the Town.
6. Departments will use a standard Town template contract. The master template is created and edited by the Town Attorney and maintained by the Clerk Department. Any changes must be approved by the Town Attorney.
7. Contracts may not be split or separated into smaller components.
XV. SOLE SOURCE/SINGLE SOURCE VENDORS
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
16 of 23
POLICY NUMBER:
4-06
Sole Source is defined as the selection of a good or service that can only be obtained from one vendor because of its specialized, proprietary, or unique character.
Single source is defined as the selection of a good or service that may be available from two or more vendors, but there is a compelling reason to select one particular vendor.
The requesting Department is responsible for supplying concise written justification, in the form of a memorandum, to be approved by the Department Director and Town Attorney, for the sole or single source purchase.
XVI. PROFESSIONAL SERVICES
Departments may seek the advice and assistance of professional service providers when there is a need for a specific expertise that is otherwise unavailable or the workload is such that additional assistance is required and the critical nature of the need justifies the cost.
1. In those cases where a professional service provider is sought due to workload issues, care shall be taken to structure services such that the professional service provider is clearly performing as an independent contractor and not as a temporary employee.
2. Reasonable alternatives, such as borrowing staff with the required expertise from another Department or establishing a full- or part-time Town position shall be considered before determining that the use of a professional service provider is cost effective and necessary.
3. Professional service providers are ordinarily selected based upon a number of criteria in addition to price. Examples include qualifications and relevant experience, understanding of the Town’s needs, proposed methodology and approach, etc.
4. Professional services are legally exempt from selection solely based on cost. However, the complexity of the professional service provider selection process should be commensurate with the value of the proposed contract. For example, seeking a proposal from a single provider might be appropriate for a $3,000 contract, but the issuance of a written Request for Proposals may be more appropriate for a $50,000 contract. The Town Attorney may advise if a Request for Proposal process should be initiated.
5. The awarding authority, based on the cost of the service, shall be empowered to engage a professional service provider without the necessity of providing multiple quotes, a formal bid process, or a Request for Proposal process. This does not preclude any of these processes from occurring if desired by the awarding authority.
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
17 of 23
POLICY NUMBER:
4-06
6. When services are required on a frequent or routine basis, a list of qualified “on-call” vendors may be established through a Request for Proposal (or Request for Information, Request for Statement of Qualifications, etc.) process. Following establishment of the list, vendors may be utilized without further selection process based on availability, cost, expertise, or other criteria. The list shall remain active for no more than five years. After five years, the Department shall utilize another Request for Proposal (or Request for Information, Request for Statement of Qualifications, etc.) process in order to update the list.
XVII. COOPERATIVE PURCHASING AGREEMENTS
When it is in the Town’s best interest, Departments may purchase goods or services through cooperative purchasing agreements of other governmental or public agencies. Use of cooperative purchasing agreements is encouraged as a way of obtaining goods and services by aggregating volume, securing value pricing, and reducing administrative overhead. Measured use of cooperative purchasing agreements can significantly reduce the time and resources needed to competitively bid goods and service contracts.
1. Purchases through cooperative purchasing agreements may be accomplished without soliciting competitive quotes.
2. Departments wanting to utilize a cooperative purchasing agreement must submit all information regarding the cooperative purchasing agreement with the purchase requisition.
XVIII. ADDITIONAL PURCHASING GUIDELINES
1. Alternate Vendor
b. In the event that a vendor with the lowest quote is unable to provide the product(s), alternate vendors will be utilized in sequence of lowest responsible quote meeting requirements.
2. Standardization
a. Standardization is an organized process to adopt one product or group of products to be used by the Town, such as a particular computer hardware of software. Product standardization may be utilized to create efficiencies, enhance safety, increase productivity, promote brand consistency, or to foster interoperability.
b. Product standardization decisions are made by consensus of the Town Manager, Town Attorney, and Finance Director after careful consideration and review of recommendations from staff.
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
18 of 23
POLICY NUMBER:
4-06
3. Purchase Requisitions
a. A purchase requisition is required to be submitted for a purchase order to be issued when necessary.
b. The requesting Department prepares the requisition using the Town’s financial software for the entire amount of the purchase, including tax, shipping and handling, etc. and includes the appropriate account codes. c. Prior to submitting the purchase requisition for approval, all documents verifying compliance with this policy must be attached. These documents may include:
a. Written quotes including product specifications and tabulation, if appropriate or required;
b. First page of the staff report, if Council approval required or received; c. Executed contract or amendment to contract for services; d. Insurance and endorsements if required by contract, or alternatively, waiver of these documents approved by Town Attorney;
e. Verification of valid business license if required; and/or f. Sole or single source memorandum for approval by Town Attorney. d. Upon receipt of a purchase requisition, the Finance Department reviews the document for accuracy and completeness. If the purchase requisition is not complete and/or accurate, a purchase order will not be issued, and the requesting Department will be notified of any necessary corrections. If the purchase requisition is complete and accurate, a purchase order will be issued in accordance with the guidelines of this policy.
e. Approval of the purchase requisition represents that the Department has sufficient funds available to pay for the purchase, all necessary documents are attached and acceptable, and the guidelines of this policy have been followed. f. A purchase order is required prior to the purchase being made or work commencing unless otherwise noted in this policy.
g. Purchases under $3,000 do not require a purchase order, but must be authorized by the purchasing Department per Section IX of this policy.
4. Purchase Orders
a. A purchase order is the principle document used to obtain goods and services for the Town.
b. Purchase orders are required for all goods or services costing over $3,000. c. A purchase order establishes an encumbrance against a program account. d. The Finance Department will issue a purchase order only after Town staff at all approval levels have first reviewed and approved the purchase requisition.
Approval levels are as follows:
a. Department Director or designee
b. Insurance verification by the Clerk Department if applicable c. Business License verification by Finance Department staff if applicable
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
19 of 23
POLICY NUMBER:
4-06
d. Approval for compliance with this policy by Finance Department e. Confirmation that the appropriate awarding authority has approved the purchase by Finance Department (i.e., Town Council).
5. Change Orders
a. Where the actual cost of goods exceeds 10% of the original purchase order, a change order must be requested from Finance by the responsible Department. b. Where the actual cost of goods is within 10% of the original purchase order amount, payment may be made subject to verification of the amount(s) by the responsible Department.
c. Where the actual cost of services differs from the original purchase order amount specified in the service contract, a contract amendment must be submitted by the Department with the change order request. d. Change orders that increase any purchase order of goods or services over $100,000 will require prior approval from Town Council. e. Documents outlining compliance with this policy must be submitted to Finance with the change order (i.e., a Council staff report).
6. Blanket Purchase Orders
a. Blanket purchase orders can be utilized for goods or services that are used by the Town for ongoing operations. For a blanket purchase order, vendors agree to honor a price for a given period of time, and the Town may not specifically know how much of the product will be consumed or where or when it will be consumed.
b. A blanket purchase order provides for obtaining pricing for anticipated but unidentified goods or services.
c. Blanket purchase orders have the same requirements for goods and services as outlined in this policy.
XIX. RECYCLED PRODUCTS AND MATERIALS
It is the Town’s intent to minimize negative environmental impacts of the Town’s activities by ensuring the procurement of services and products that reduce toxicity, maximize recyclability and recycled content, and conserve natural resources, material, and energy.
In 2016, Governor Brown signed into law Senate Bill 1383 (SB 1383), in a state-wide effort to reduce emissions of short-lived climate pollutants (SLCP). Beginning January 1, 2022, SB 1383 requires cities and counties to procure annually a quantity of recovered organic waste products. As there is so much paper present in the solid waste disposal stream, the procurement of recycled content and recyclable paper will grow demand for these products and support recycling to help meet the organic waste diversion goals of SB 1383.
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
20 of 23
POLICY NUMBER:
4-06
Town Departments and direct service providers to the Town, as applicable, must comply with the Town’s Organic Waste Product Procurement Procedure for purchasing and mandatory recordkeeping for paper products, printing and writing paper, and disposable kitchen and office supplies.
Requirements for purchasing paper products, printing and writing paper, and disposable kitchen and office supplies are as follows:
1. All purchases must contain 30 percent postconsumer recycled content, when available at no greater cost than nonrecycled products.
2. Products must be recyclable as defined by FTC “Green Guides.”
3. Departments must require vendors to certify postconsumer content and recyclability claims.
4. Departments/employees must provide records to the recordkeeping designee, as outlined in the Town Organic Waste Product Procurement Procedure, of all paper products, printing and writing paper, and disposable kitchen and office supplies purchased from a vendor within thirty days of the purchase (both recycled content and non-recycled content, if any is purchased). Records shall include a copy of the invoice or other documentation of purchase, written certifications for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-recycled content paper products and/or nonrecycled content printing and writing paper are provided, include a description of why recycled-content paper products and/or recycled content printing and writing paper were not provided.
Departments should meet the following guidelines for non-paper products, provided the goods are available within a reasonable timeframe, meet reasonable performance standards, and are available at a reasonable cost:
1. All computer products purchased by the Town should be in compliance with the Federal Energy Star program.
2. All pesticides purchased by the Town shall be of the least toxic available.
3. Whenever possible, goods and services procured by the Town shall be from businesses that are certified green businesses by the Bay Area Green Business Program.
XX. HEALTHY FOOD AND BEVERAGE GUIDELINES
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
21 of 23
POLICY NUMBER:
4-06
The Town of Los Gatos is committed to promoting and encouraging ways for Town staff, residents, and visitors to improve their overall health and wellness. One way to achieve the goal of supporting healthy living is to offer, purchase, and serve food and beverages of the greatest nutritional value and in appropriate serving sizes. The following guidelines help the Town promote a healthy work environment leading to greater job satisfaction, higher morale, and reduced health care costs and absenteeism. These guidelines are applicable when Town funds are being used and are not directed at individuals’ meals, snacks, or beverages purchased or brought from home using non-Town funds. The guidelines apply to Town-sponsored meetings, celebrations, events, and in vending machines on Town property.
2. Beverages
a. Water is presented as an attractive and appealing option. b. Sparkling water may be offered as an alternative to soda. c. Decaffeinated beverages are offered.
d. Coffee and tea may be served unsweetened.
e. Juices that provide more beneficial nutrients, like orange and grapefruit, are preferred.
f. Recommended beverages include water, fat-free or skim milk, non-dairy milk alternatives (i.e., soy, almond, or oat), 100% fruit or vegetable juices, diet beverages, calorie-free sports drinks, and low-calorie sparkling water products.
3. Food and Desserts
a. Healthy options are attractively presented and appealing. b. Reasonable portions are provided by cutting food in halves or quarters (i.e., cookies, sandwiches, or bagels are sliced in half). c. Either a fully plant-based offering or an attractive plant-based alternative is offered.
d. A gluten-free option is offered.
e. Foods are prepared using healthy cooking techniques such as baking, roasting, grilling, or steaming.
f. Desserts are served in small portion sizes and healthier food options such as fresh fruit are also provided.
g. Recommended foods include fruits, vegetable, whole grains, lean protein (i.e., skinless chicken breast, turkey, beans, tofu), and lower fat condiments such as vinaigrette, hummus, mustard, or salsa.
4. Food vending
a. Contents of package must be a single serving size.
b. No more than 35% calories from fat, with the exception of packages of nuts or seeds.
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
22 of 23
POLICY NUMBER:
4-06
c. At least one snack food item offered should meet the Food and Drug Administration’s definition of “low sodium.”
d. At least one snack item offered should contain at least two grams of dietary fiber per serving.
XXI. UNAUTHORIZED PURCHASES
Unauthorized purchases are required to be ratified by the appropriate awarding authority.
1. The employee making the unauthorized purchase must provide a written explanation of why the purchase was made.
2. The written explanation must be reviewed and approved by the appropriate awarding authority.
3. In the event that a vendor has been paid and the unauthorized purchase is not subsequently ratified, the employee may be held responsible for reimbursing the Town.
XXII. SURPLUS GOODS AND EQUIPMENT
The Town Manager or their designee has the authority to declare items with a market value of less than $100,000 surplus. Items with a market value greater than $100,000 will be formally declared surplus by the Town Council. Each Department shall periodically review its inventory and promptly notify the Town Manager of any surplus property. Proceeds from the sale or trade-in of surplus property shall be returned to the appropriate fund.
1. Surplus Disposal: The declaring authority shall determine or approve one of the following methods of disposition that is most appropriate and in the best interest of the Town:
a. Transfer to another Department: Surplus property may be transferred between Town Departments.
b. Trade-In: Surplus property may be offered as a trade-in credit toward the acquisition of new property.
c. Disposal: The surplus property may be offered for sale. All surplus property is for sale “as is,” with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility, or usability of the property offered for sale.
2. Methods of Disposal:
ITEM NO. 7.
TITLE: Purchasing Policy
PAGE:
23 of 23
POLICY NUMBER:
4-06
a. Public Auction: Surplus property may be sold at public auction. Town staff may conduct public auctions, use online auction sites, or the Town may contract with a professional auctioneer.
b. Sealed Bids: Sealed bids may be solicited for the sale of surplus property.
Surplus property disposed of in this manner should be sold to the highest responsible bidder.
c. Selling for Scrap: Surplus property may be sold as scrap if the declaring authority deems that the value of the raw material exceeds the value of the property as a whole.
d. Negotiated Sale: Surplus property may be sold outright if the declaring authority determines that only one known buyer is available or interested in acquiring the property.
e. Donation: Surplus property unlikely to generate significant revenue may be donated to other public agencies or to non-profit organizations. Any non-profit must be qualified under section 501(c)(3) of the Internal Revenue Code in order to receive a donation.
f. No Value Item: Where the Town Manager determines that specific supplies or equipment are surplus and of minimal value to the Town due to spoilage, obsolescence, or other cause; or where the Town Manager determines that cost of disposal of such supplies or equipment would exceed the recovery value, the Town Manager shall dispose of the supplies in such manner as he or she deems appropriate and in the best interest of the Town.
APPROVED AS TO FORM:
________
Robert SchultzGabrielle Whelan, Town Attorney
ITEM NO. 7.
COUNCIL POLICY MANUAL
TITLE: Purchasing Policy POLICY NUMBER: 4-06
EFFECTIVE DATE: August 4, 2008 PAGES: 23
ENABLING ACTIONS: Ordinance 2325;
2021-052
REVISED DATES: 11/16/2021
APPROVED:
I. PURPOSE
The purpose of this Purchasing Policy is to define the policies and processes for the procurement of goods and services for the Town of Los Gatos in conformance with Federal and State codes and regulations and Town Code Sections 2.50.105 through 2.50.145. This policy establishes procurement authorization levels and provides uniform guidelines for procurement activities to ensure proper and efficient procurement activity.
II. SCOPE
The provisions of this policy shall apply to elected and appointed officials, Town employees, volunteers, and vendors seeking to do business with the Town. It identifies those with the authority and responsibility to procure on behalf of the Town, and addresses policies on matters including, but not limited to, the purchase of goods and services, public works projects, emergency purchases, Town contracts for services, and the disposition of surplus property.
III. CODE OF CONDUCT
All Town employees are responsible for impartially assuring fair and competitive access to Town procurement opportunities by responsible vendors. In addition, all employees shall conduct themselves in a manner that avoids any impropriety and that fosters the highest level of public confidence in the integrity of the Town’s purchasing system.
1. Conflict of Interest: No employee shall participate in a procurement when the employee knows that their spouse, domestic partner, child, stepchild, parent, stepparent or other close family member or friend will either benefit from the procurement and/or has an employment arrangement contingent on or will be affected by the procurement.
Small Town Service Community Stewardship Future Focus
ATTACHMENT 3 Page 205
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
2 of 23
POLICY NUMBER:
4-06
2. No Gifts or Gratuities: No Town employee shall solicit, demand, accept or agree to accept a gift of goods or services, payment, loan, advance, deposit of money, or employment offer presented, promised in return for, or in anticipation of favorable consideration in a Town procurement.
3. Conduct with Vendors: Conduct with vendors who provide goods or services to the Town shall be fair, open, and transparent. Town employees shall refrain from showing favoritism to vendors or being unduly influenced, safeguard confidentiality when required to do so, and select vendors on the basis of meeting appropriate and fair criteria. This includes purchase orders.
4. Accountability. Town employees shall abide by and be accountable for the codes of conduct established in this policy. Policy violations may result in disciplinary action and/or termination of employment.
IV. EXCLUSIONS/EXCEPTIONS
The provisions of this policy shall not apply to any of the following, with the exception of the requirements for a contract, as determined by the Town Attorney:
1. Employee benefits
2. Bond and trust account payments
3. Employee reimbursements
4. Escrow payments
5. Fuel (gasoline/diesel)
6. Insurance
7. Membership/dues
8. Media advertisements
9. Offsite training expenses
10. Pass-through payments
11. Postage
12. Refunds
13. Travel expenses
14. Utility payments
15. Contracts governed by any State or Federal law which prescribes a different procedure
16. Goods or services accepted in compliance with the terms and conditions of a grant, gift, or bequest to the Town
V. DEFINITIONS
For purposes of this policy, the following words and phrases shall be interpreted as follows:
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
3 of 23
POLICY NUMBER:
4-06
Awarding Authority – The governing body or staff person authorized to approve the purchase of goods and services on behalf of the Town based on level of review and/or predetermined monetary amounts established by this policy.
Bid – Formal written offer, in response to a solicitation, to furnish goods including supplies, equipment, and vehicles, and/or services in conformity with the specifications, delivery terms, and conditions required at a guaranteed maximum cost.
Change Order – A document signed and approved by an authorized Town employee and the Finance Department that modifies the terms of the original approved purchase order and/or agreement in scope, cost, schedule, account coding, and/or other similar factor.
Contract or Agreement – A written legal document between two or more parties, which documents agreed upon particulars, including some or all of the following: scope of work; deliverables; milestones or measures; time and insurance requirements; use of equipment or property; fees or payments.
Cost – As applied to a single transaction for the purchase of goods or services, means the total amount to be expended by the Town, inclusive of sales or use tax. Cost includes amounts expended for delivery, set-up, testing, and included maintenance services.
Department Directors – Means and includes the Assistant Town Manager, Community Development Director, Human Resources Director, Finance Director, Library Director, Police Chief, Information Technology Manager, Town Clerk, and Parks and Public Works Director. In the case of vacancy or absence, to mean the interim or acting Director.
Department Purchasing Representative – A Town employee designated by their Department Director as having the authority to solicit bids or proposals and place orders with vendors on behalf of their Department, subject to the limitations established in this Policy, Town Code Sections 2.50.105 through 2.50.145, and the approval of the appropriate awarding authority.
Disposable Kitchen and Office Supplies – Include, but are not limited to: coffee cups, plates, pens, binders, trash, and recycle liners.
Emergency – An emergency is a sudden, unexpected occurrence that poses a clear and imminent danger and requires immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services, as declared by the Director of Emergency Services/Town Manager.
Employee – An individual who performs services for the Town as an elected or appointed official or as a compensated employee of the Town or of a temporary services agency retained by the Town.
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
4 of 23
POLICY NUMBER:
4-06
Goods – Includes supplies, materials, and equipment to be furnished or used by any Town Department, including items purchased by the Town and furnished to contractors for use in public works projects.
Independent Contractor – An individual or business with whom the Town contracts to provide services. An independent contractor differs from an employee in that the Town specifies the deliverable that is to result from the contracted work but does not have the right to direct or control the manner in which the work is performed.
Insurance – All vendors engaged in services on Town property, or whenever there may be an inherent risk of personal injury in the activity involved, regardless of the cost of the service, are required to maintain public liability insurance, property damage insurance, and workers compensation insurance, in accordance with State law, for each occurrence naming the Town of Los Gatos as additional insured. A Certificate of Insurance must be filed with the Town prior to engaging in any operation of activity set forth in the purchase order. If a vendor is providing a good such as equipment, insurance may be required if the purchase entails set-up, testing, and/or maintenance as part of the purchase or lease. Refer to the insurance requirements in effect at the time of procurement. Insurance requirements are maintained by the Town Clerk Department and Town Attorney. Exceptions to the standard insurance requirements must be authorized by the Town Attorney. The purchasing Department should request insurance from the vendor and ensure current insurance documents are on file with the Town.
Maintenance Work – As defined in Section 22002 of the Public Contract Code, and means duties that include any or all of the following: (a) routine, recurring and usual work for the preservation or protection of any publicly owned or operated facility, (b) minor repainting, (c) resurfacing of streets and highways at less than one inch, (d) landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems, or (e) work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems.
Paper Products – Include, but are not limited to: paper janitorial supplies, cartons, wrapping, packaging, file folders, hanging folders, corrugated boxes, tissue, and toweling, or as otherwise defined in 14 CCR Section 18982(a)(51).
Printing and Writing Papers – Include, but are not limited to: copy, xerographic, watermark, cotton fiber, offset, forms, computer printout paper, white wove envelopes, manila envelopes, book paper, note pads, writing tablets, newsprint, and other uncoated writing papers, posters, index cards, calendars, brochures, reports, magazines, and publications, or as otherwise defined in 14 CCR Section 18982(a)(54).
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
5 of 23
POLICY NUMBER:
4-06
Professional Services – Services which require the exercise of professional discretion and independent judgment, based on an advanced or specialized knowledge, expertise or training gained by formal studies or experience. Examples of professional service providers include appraisers, architects, attorneys, engineers, instructors, land surveyors, physicians, information technology services, graphic designers, construction inspectors, etc.
Public Works Project – As defined in Section 22002 of the Public Contract Code, and means any of the following, but does not include “maintenance work”:
1. Constructions, reconstruction, erection alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility; or
2. Painting or repainting of any publicly owned, leased, or operated facility.
Purchase Order – An approved purchase order represents a written agreement for the purchase of supplies or services, documenting specifications and costs. Purchase orders encumber funds in the accounting systems to ensure the availability of funds under the agreement. Purchase orders are required for purchases over $3,000.
Purchase Requisition – A purchase requisition form is prepared by staff, electronically through the Town’s financial software system. A purchase requisition includes vendor information, business license and insurance information, and purchase specifications. After Departmental approval, the purchase requisition is submitted to the Finance Department for approval and conversion into a purchase order.
Quote – A written promise from a vendor or provider guaranteeing the cost of specific goods, including supplies, materials, equipment, or services.
Recovered Organic Waste Products – Products made in California, landfill-diverted recovered Organic Waste processed in a permitted or otherwise authorized facility, or as otherwise defined in 14 CCR Section 18982(a)(60).
Recycled-Content Paper – Paper products and printing and writing paper that consists of at least 30 percent, by fiber weight, postconsumer fiber, or as otherwise defined in 14 CCR Section 18982(a)(61).
Senate Bill 1383 (SB 1383) – Senate Bill approved by the Governor on September 19, 2016, which added Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety Code, and added Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30 of the Public Resources Code, establishing methane admissions reduction targets in a Statewide effort to reduce emissions of short-lived climate pollutants as amended, supplemented, superseded, and replaced from time to time.
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
6 of 23
POLICY NUMBER:
4-06
Senate Bill 1383 Regulations (SB 1383 Regulations) – The Short-Lived Climate Pollutants:
Organic Waste Reduction regulations developed by CalRecycle that created 14 CCR, Division 7, Chapter 12 and amended portions of the regulations of 14 CCR and 27 CCR.
Services (General) – Work performed or labor, time and effort expended by an independent contractor, including professional services and excluding contracts for public works projects.
Examples include custodial services and building and equipment maintenance.
Surplus Property – Any Town property that is no longer needed or useable by the holding Department.
VI. DECENTRALIZED PURCHASING SYSTEM
The Town has adopted a decentralized purchasing system pursuant to Town Code Section
2.50.110. This means that for most purchases, requesting Departments can directly implement the appropriate procurement process, subject to the limitations established in this policy and subject to the approval of the appropriate awarding authority. The Finance Department and Town Manager oversee this process. Nothing precludes staff from seeking procurement assistance from the Finance Department or Town Manager, especially to clarify policies, processes, and procedures.
VII. BUSINESS LICENSES
Pursuant to Town Code Chapter 14, a Town business license is required for vendors located within Town limits, or if an agent of the business comes into Town to conduct business. The Department initiating the purchase or contract for services is responsible for ensuring that the vendor has a business license. Common carriers only delivering goods and other government entities less than two times per quarter are not subject to the business license certification requirement.
VIII. TYPES OF PURCHASES
For the purpose of this policy, purchases fall into one of the following categories: general purchase of goods and/or services, public works projects, and emergency purchases. Special rules apply to purchases made with federal funds.
As a general rule, purchases shall be based on a competitive procurement process. The rigor of the procurement process increases with the dollar value of the purchase. Although formal bidding can result in lower purchase prices, there are costs associated with the process in terms of time and effort and smaller value procurements may not attract vendor interest in a rigorous process. For that reason, the smaller the purchase, the lesser the requirements in procurement process and vice versa.
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
7 of 23
POLICY NUMBER:
4-06
IX. PURCHASES
Under no circumstance can any purchase be split or separated into smaller components to determine the appropriate awarding authority or for any other purpose.
1. Purchases up to and including $3,000 (including tax, shipping, and handling):
a. May be approved at the staff level by a Department Purchasing Representative as designated by Department Directors.
b. No Purchase Order is required prior to the purchase being made or work commencing.
c. For a service purchase, contract, insurance, and business license are required.
See Section XIV of this policy for more information.
d. A Town-issued purchasing credit card may be used to pay, subject to purchasing limits and the rules set forth in the Town Procurement Card Procedure.
2. Purchases over $3,000 and up to and including $50,000 (including tax, shipping, and handling):
a. Department Director must approve purchase.
b. A purchase order is required prior to purchase being made or work commencing. c. At least three quotes must be solicited from different vendors and supporting documentation must be submitted with the purchase requisition. d. For purchase of goods that are standardized or of uniform quality, the award will be given to the vendor with the lowest quote. For purchase of services or goods that are not standardized or not of uniform quality or other factors in addition to cost must be taken into account, and the purchase is not awarded to the vendor with the lowest quote, an explanation of why and any documentation to support the decision must be submitted with the purchase requisition. e. For a service purchase, contract, insurance, and business license are required.
See Section XIV of this policy for more information.
f. For information regarding sole source or single source vendors, see Section XV of this policy.
3. Purchases over $50,000 and up to and including $100,000 (including tax, shipping, and handling):
a. Town Manager, or designee, must approve purchase.
b. A purchase order is required prior to purchase being made or work commencing. c. For purchase of goods that are standardized or of uniform quality, a Formal Bid Procedure as outlined in Town Code Section 2.50.140 shall be followed. For purchase of services or goods that are not standardized or not of uniform quality or other factors in addition to cost must be taken into account, a Request for Proposal Process as outlined in Town Code Section 2.50.141 shall be followed (see Section XIII of this policy for more information). This excludes public works
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
8 of 23
POLICY NUMBER:
4-06
projects - for bidding methods related to public works projects, see Section X of this policy.
d. Vendor evaluation and selection criteria must be clearly outlined and presented with the purchase requisition when applicable.
e. For a service purchase, contract, insurance, and business license are required.
See Section XIV of this policy for more information.
f. For information regarding sole source or single source vendors, see Section XV of this policy.
4. Goods and services costing over $100,000:
a. Town Council must approve purchase.
b. A purchase order is required prior to the purchase being made or work commencing.
c. For purchase of goods that are standardized or of uniform quality, a Formal Bid Procedure as outlined in Town Code Section 2.50.140 shall be followed. For purchase of services or goods that are not standardized or not of uniform quality or other factors in addition to cost must be taken into account, a Request for Proposal Process as outlined in Town Code Section 2.50.141 shall be followed (see Section XIII of this policy for more information). This excludes public works projects - for bidding methods related to public works projects, see Section X of this policy.
d. Vendor evaluation and selection criteria must be clearly outlined and presented to the Town Council when applicable.
e. For a service purchase, contract, insurance, and business license are required.
See Section XIV of this policy for more information.
The Town Manager, or their designee, is authorized to sign all approved contracts and agreements in amounts up to and including $100,000.
X. PUBLIC WORKS PROJECTS
For public works projects as defined in this policy and the Public Contract Code:
1. The Town has adopted the California Uniform Public Construction Cost Accounting Act (the Act), per Town Code Section 2.50.131. These procedures are intended to provide uniformity of cost accounting standards for construction work performed or contracted by public entities in the State and a method for the bidding of public works projects.
This section is designed to provide a synopsis of the general provisions of the Act and adopt local administrative procedures to comply with the intent of the Act. The Act should be consulted for detailed information (see the California State Controller’s website at: https://sco.ca.gov/ard_cuccac.html and the Manual, currently at:
www.sco.ca.gov/Files-ARD-Local/CUCCAC_Manual.pdf). Every five years, the Act Commission reviews the informal bid limits for inflation and other factors to determine
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
9 of 23
POLICY NUMBER:
4-06
whether adjustments should be made. If an adjustment is made, the State Controller notifies the affected public agencies.
2. Generally, the Act permits the Town to solicit bids and award contracts for public works projects as follows:
a. Public project work in the amount defined in the Act (currently $60,000) or less may be performed by force account using the Town’s own staff resources, or by negotiated contract, or by purchase order (Section 22032(a)) with no bid requirement.
b. Public projects in the amount defined in the Act (currently $200,000) or less may use the informal bidding procedures set forth in Section 22032(b) of the Act. c. Public projects at a cost defined in the Act (currently more than $200,000) must use formal bidding procedures to let the contract pursuant to Public Contract Code Section 22032(c).
d. Contractors List: At least once per calendar year, the Town must establish a new list or update its existing list of qualified contractors by mailing, faxing, or emailing written notice to all construction trade journals designated for that Agency under Public Contract Code Section 22036. The notice must invite all licensed contractors to submit the name of their firms to the Town for inclusion on the Town’s list of qualified bidders for the following 12 months. The Town can choose a specific date in which to renew the list of qualified contractors and may add a contractor to the list at any time during the year pursuant to the Act. e. Maintenance work, as defined in this policy and the Public Contract Code, is separate and distinct from public works projects and does not fall under the Act. f. All requirements of the Act, as amended from time to time, shall apply to this Policy.
3. Procedures
a. Development of Plans and Specifications
i. The Department will prepare plans and specifications that will permit the widest opportunity to prospective bidders to respond to the request for bids based on the specifications. Prior to the plans and specifications, the insurance requirements and legal aspects for the project must be reviewed and approved by the Town Attorney.
ii. Bid bonds, performance bonds, and payment bonds may be required in amounts stated in the specifications.
b. Solicitation of Bids and Proposals
i. Informal Bids: A notice inviting informal bids shall be prepared, describing the project in general terms, how to obtain more detailed information about the project, and state the time and place for the submission of bids. The notice shall be mailed, not less than 10 calendar days before bids are due, either to all Contractors on the Contractors List
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
10 of 23
POLICY NUMBER:
4-06
for the category of work to be bid, or to all construction trade journals as specified by the Act Commission in accordance with Section 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the Department soliciting bids, provided, however:
1. If there is no Contractors List maintained by the Town for the particular category or work to be performed, the notice shall be sent only to the construction trade journals specified by the California Uniform Construction Cost Accounting Commission.
2. If the product or service is proprietary in nature such that it can only be obtained from a certain contractor or contractors, the notice may be sent exclusively to such contractor or contractors. ii. Formal Bids: Notices describing the project, stating where to obtain more information, the time and place for submitting sealed bids, and their opening shall be pursuant to Section 22037:
1. Published at least 14 calendar days before the date of opening the bids in a newspaper of general circulation in the Town’s jurisdiction;
2. Sent electronically, if available, by either facsimile or e-mail to all construction trade journals specified in Section 22036 at least 15 days before the date of opening of bids;
3. Other notice, if necessary or desired by the Town.
iii. Rejections of Bids: In its discretion, the Town may reject any bids presented after re-evaluating its cost estimates of the project and furnishing written notice to an apparent low bidder. The Town shall have the option of either of the following:
1. Abandoning the project;
2. Re-advertising for bids in the manner described above; or
3. The Council may override the requirement for bidding if it determines that the public project will be performed more economically by the Town without a contract, or that materials and supplies can be purchased at a lower price in the open market, or if no bids are received through the formal or informal procedure, the project may be performed by Town employees. iv. Award of Contract
1. Contracts valued over $100,000 shall be awarded by Town Council.
2. Contracts valued up to and including $100,000 may be awarded by the Town Manager or designee.
3. If all bids received through an informal bidding process are in excess of the amount defined in the Act (currently $200,000) as requiring a formal bid process, the Town Council may, by adoption of a resolution by a four-fifths vote, award the contract
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
11 of 23
POLICY NUMBER:
4-06
at the amount defined in the Act (currently $212,500) or less, to the lowest responsible bidder, if it determines the cost estimate of the Town was reasonable pursuant to Section 22034. If the Council does not award the contract, but wants to proceed with the project, the specifications must be reviewed and formal bids solicited.
v. Monitoring and Administration
1. Public works projects must be bid in accordance with the California Uniform Public Construction Cost Accounting Act. a. Public works projects must be awarded to the lowest
responsible bidder.
b. Contracts over $3,000 require a purchase order prior to purchase being made or work commencing unless otherwise authorized as an emergency purchase.
2. Anyone working on a public works project must be paid prevailing wages as determined by the California Department of Industrial Relations.
3. Contractors completing public works projects must be properly licensed by the State of California, provide a Tax Identification Number, and carry the required liability and workers’
compensation insurance and must be registered with the
department of Industrial Relations if the contract amount exceeds $25,000.
XI. EMERGENCY PURCHASES
In a declared emergency, essential goods and services may need to be obtained outside the processes and authorities established in this Policy. A separate Emergency Procurement Policy identifies when the Town is able to acquire the goods and services required to address an immediate threat to life-safety, public health, and property. The Policy allows for the necessary flexibility during the immediate response phase of a disaster while still maintaining an effective purchasing process and complying with applicable local and state purchasing laws. Where the Town is included in a major disaster or emergency declared by the President of the United States, this Policy also assures that Town procurements comply with Federal regulations applicable to Federal disaster grant reimbursement as defined in Title 2 of the Code of Federal Regulations, Part 200 (2 CFR Part 200).
In a non-declared emergency, when purchases are immediately necessary for the preservation of life, property, public health, or continued operation of a Department, the Town Manager must approve the purchase. Once the Finance Department receives Town Manager approval, a purchase order will be issued. All requirements, including obtaining an executed agreement, business license, and insurance should be completed after the fact by the Department. Failure
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
12 of 23
POLICY NUMBER:
4-06
to complete necessary procedures before the good/service were needed does not constitute an emergency.
XII. PREFERENCE FOR LOCAL AND MINORITY, DISABLED, AND WOMAN-OWNED
BUSINESSES
It is the intent of the Town to ensure full and equitable opportunities for minority business enterprises, women business enterprises, disabled business enterprises, and local businesses.
For the purchase of goods or services, when two or more proposals, bids, or quotes are the same, in unit, quality, service, and total cost, preference shall be given to local businesses who operate within the Town of Los Gatos limits, minority business enterprises, women business enterprises, and disabled business enterprises.
1. Preference shall be given if the quote for service or taxable good is:
a. Up to and including $10,000 and is within 5% of the lowest quote b. More than $10,000 and up to $500,000 and is within 3% of the lowest quote c. More than $500,000 and up to $1,000,000 and within 2% of the lowest quote d. More than $1,000,000 and within 1% of the lowest quote
2. A local business shall be defined as a vendor or contractor who has a fixed place of business in Town limits and the point of sale occurs within Town limits, is current in the payment of their business license fee, is in compliance with Town laws, and does not owe any money to the Town.
3. The Town will take all necessary affirmative steps to assure that minority businesses, women business enterprises, disabled business enterprises, and labor surplus area firms are used when possible, including those identified in 2 CFR Section 200.321:
a. Placing qualified small and minority businesses and women’s business enterprises on solicitation lists;
b. Assuring that small and minority businesses, and women’s business enterprises are solicited whenever they are potential sources;
c. Dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and minority businesses, and women’s business enterprises;
d. Establishing delivery schedules, where the requirement permits, which encourage participation by small and minority businesses, and women’s business enterprises;
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
13 of 23
POLICY NUMBER:
4-06
e. Using the services and assistance, as appropriate, of such organizations as the Small Business Administration and the Minority Business Development Agency of the Department of Commerce; and
f. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps listed in this section.
4. The preference does not prohibit the Town from basing purchasing decisions on the quality of goods/services.
XIII. FORMAL BIDDING PROCEDURES AND REQUEST FOR PROPOSAL (INCLUDING REQUEST FOR INFORMATION, REQUEST FOR STATEMENT OF QUALIFICATIONS, ETC.)
PROCESS
1. Formal Bidding Procedures. All purchases for goods of a standardized or uniform quality in excess of $50,000, except public works projects, are subject to a Formal Bid Procedure as outlined in Town Code Section 2.50.140. When competitive bids are required:
a. Notice inviting bids shall be published at least 14 days before the opening of bids. Notice shall be published at least twice in a newspaper of general circulation in Town, posted on the Town bulletin boards and website, and solicited from all vendors on any relevant bidders’ list. The notice should include the details of where to submit bids (Clerk Department) and the date, time, and location of the bid opening.
b. When deemed necessary by the purchasing Department, bidder’s security may be prescribed. Bidders shall be entitled to return of bid security provided that a successful bidder shall forfeit bid security upon refusal or failure to execute the contract within 10 days after the notice of award of contract has been mailed, unless the Town is responsible for the delay. The awarding authority may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest bidder, the amount of the lowest bidder’s security being applied by the Town to the difference between the low bid and the second lowest bid, and the surplus, if any, shall be returned to the lowest bidder. c. Sealed bids shall be submitted to the Town Clerk and shall be identified as bids on the envelope. Bids shall be opened in public at the time and place stated in the public notices. A tabulation of all bids received shall be available for public inspection during regular business hours for at least 30 calendar days. d. Contract shall be awarded by appropriate written notice to the lowest cost, responsible, and responsive bidder whose bid meets the requirements and criteria set forth in the invitation for bids.
e. If two or more bids received are for the same total amount or unit price, quality and service being equal, and if the public interest will not permit the delay of readvertising the bids, the awarding authority may accept the one it chooses or
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
14 of 23
POLICY NUMBER:
4-06
accept the lowest bid made by negotiation with the bidders at the time of the bid opening.
f. An invitation for bids may be cancelled, or any bids may be rejected in whole or in part at Town discretion with or without showing of good cause. g. The awarding authority shall have authority to require a performance bond before entering into a contract in such amount as it shall find reasonably necessary to protect the best interests of the Town. If a performance bond is required, the form and amount of the bond shall be described in the notice inviting bids.
h. Any participating bidder may file an appeal/protest of a contract award or proposed contract award. The protest or appeal must be made in writing within 10 days of award notification and contain at least the following information:
ii. The name, address, email, and phone number of the protester. iii. The signature of the protester.
iv. The bid number and date of bid closing.
v. A statement of the legal grounds on which the appeal is based, including all information relevant to the bid.
i. The awarding authority may advise against a formal bidding process due to a significant business purpose or disruption of services.
2. Requests for Proposals Process.
a. Purchases for services and goods not standardized or not of uniform quality or requiring other factors in addition to cost to be taken into account, in excess of $50,000, except public works projects, are subject to a Request for Proposal Process as outlined in Town Code Section 2.50.141. When a Request for Proposal process is used:
i. The following information should be included in the Request when relevant: submittal deadline, contact information, introduction, background, scope of work, payment details, information to be submitted, timeline, evaluation criteria, insurance requirements, disqualifications, contract terms and conditions, and the public nature of materials submitted.
ii. Any dollar amount may be used.
iii. Proposals shall be submitted to the designated Town personnel electronically or in a sealed envelope prior to the deadline. iv. The purchasing Department shall solicit, whenever possible, at least three competitive proposals.
v. The Town may utilize various other accepted requests for procurement in place of a Request for Proposal, including a Request for Information, Request for Statement of Qualifications, or others as deemed appropriate.
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
15 of 23
POLICY NUMBER:
4-06
vi. The Request shall be posted online at least 10 days in advance, unless a shorter timeframe is warranted.
vii. Any interested vendors shall be treated fairly and given identical information and an equal opportunity to compete.
viii. Once responses are received, the proposals will be confidentially evaluated and scored in accordance with the established criteria.
Interviews, presentations, site visits, etc. may be conducted depending on the nature of the procurement.
ix. When a top-rated proposer is identified, good faith negotiations will commence. If an agreement cannot be reached in consideration of cost and/or scope, the next highest-rated proposer will be engaged and so on, until a mutually acceptable agreement is reached.
XIV. CONTRACTS
Contracts are required for the purchase of services.
1. A contract may be entered into for any period of time deemed to be in the best interest of the Town, provided that the term of the contract and renewal provisions are included in the original solicitation process. Contracts committing the Town over five fiscal years are not recommended and should be reviewed and approved by the awarding authority on a case-by-case basis.
2. Contracts in excess of one year shall include a provision automatically terminating the contract in the event that the Town Council does not budget funds to pay the contract in future years.
3. Insurance, as defined in this policy, is required for any vendor in connection with a contract that involves service performed on Town property.
4. If a vendor is providing a good such as equipment, a contract may be required if the purchase also entails a service such as set-up, testing, and/or maintenance as part of the purchase or lease.
5. All contracts must be approved as to form by the Town Attorney and routed through the Town’s standard contract routing process, registered by the Town Clerk and reviewed, at a minimum, by the Finance Department and Town Manager’s Office. The Town Manager will sign all contracts on behalf of the Town.
6. Departments will use a standard Town template contract. The master template is created and edited by the Town Attorney and maintained by the Clerk Department. Any changes must be approved by the Town Attorney.
7. Contracts may not be split or separated into smaller components.
XV. SOLE SOURCE/SINGLE SOURCE VENDORS
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
16 of 23
POLICY NUMBER:
4-06
Sole Source is defined as the selection of a good or service that can only be obtained from one vendor because of its specialized, proprietary, or unique character.
Single source is defined as the selection of a good or service that may be available from two or more vendors, but there is a compelling reason to select one particular vendor.
The requesting Department is responsible for supplying concise written justification, in the form of a memorandum, to be approved by the Department Director and Town Attorney, for the sole or single source purchase.
XVI. PROFESSIONAL SERVICES
Departments may seek the advice and assistance of professional service providers when there is a need for a specific expertise that is otherwise unavailable or the workload is such that additional assistance is required and the critical nature of the need justifies the cost.
1. In those cases where a professional service provider is sought due to workload issues, care shall be taken to structure services such that the professional service provider is clearly performing as an independent contractor and not as a temporary employee.
2. Reasonable alternatives, such as borrowing staff with the required expertise from another Department or establishing a full- or part-time Town position shall be considered before determining that the use of a professional service provider is cost effective and necessary.
3. Professional service providers are ordinarily selected based upon a number of criteria in addition to price. Examples include qualifications and relevant experience, understanding of the Town’s needs, proposed methodology and approach, etc.
4. Professional services are legally exempt from selection solely based on cost. However, the complexity of the professional service provider selection process should be commensurate with the value of the proposed contract. For example, seeking a proposal from a single provider might be appropriate for a $3,000 contract, but the issuance of a written Request for Proposals may be more appropriate for a $50,000 contract. The Town Attorney may advise if a Request for Proposal process should be initiated.
5. The awarding authority, based on the cost of the service, shall be empowered to engage a professional service provider without the necessity of providing multiple quotes, a formal bid process, or a Request for Proposal process. This does not preclude any of these processes from occurring if desired by the awarding authority.
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
17 of 23
POLICY NUMBER:
4-06
6. When services are required on a frequent or routine basis, a list of qualified “on-call” vendors may be established through a Request for Proposal (or Request for Information, Request for Statement of Qualifications, etc.) process. Following establishment of the list, vendors may be utilized without further selection process based on availability, cost, expertise, or other criteria. The list shall remain active for no more than five years. After five years, the Department shall utilize another Request for Proposal (or Request for Information, Request for Statement of Qualifications, etc.) process in order to update the list.
XVII. COOPERATIVE PURCHASING AGREEMENTS
When it is in the Town’s best interest, Departments may purchase goods or services through cooperative purchasing agreements of other governmental or public agencies. Use of cooperative purchasing agreements is encouraged as a way of obtaining goods and services by aggregating volume, securing value pricing, and reducing administrative overhead. Measured use of cooperative purchasing agreements can significantly reduce the time and resources needed to competitively bid goods and service contracts.
1. Purchases through cooperative purchasing agreements may be accomplished without soliciting competitive quotes.
2. Departments wanting to utilize a cooperative purchasing agreement must submit all information regarding the cooperative purchasing agreement with the purchase requisition.
XVIII. ADDITIONAL PURCHASING GUIDELINES
1. Alternate Vendor
b. In the event that a vendor with the lowest quote is unable to provide the product(s), alternate vendors will be utilized in sequence of lowest responsible quote meeting requirements.
2. Standardization
a. Standardization is an organized process to adopt one product or group of products to be used by the Town, such as a particular computer hardware of software. Product standardization may be utilized to create efficiencies, enhance safety, increase productivity, promote brand consistency, or to foster interoperability.
b. Product standardization decisions are made by consensus of the Town Manager, Town Attorney, and Finance Director after careful consideration and review of recommendations from staff.
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
18 of 23
POLICY NUMBER:
4-06
3. Purchase Requisitions
a. A purchase requisition is required to be submitted for a purchase order to be issued when necessary.
b. The requesting Department prepares the requisition using the Town’s financial software for the entire amount of the purchase, including tax, shipping and handling, etc. and includes the appropriate account codes. c. Prior to submitting the purchase requisition for approval, all documents verifying compliance with this policy must be attached. These documents may include:
a. Written quotes including product specifications and tabulation, if appropriate or required;
b. First page of the staff report, if Council approval required or received; c. Executed contract or amendment to contract for services; d. Insurance and endorsements if required by contract, or alternatively, waiver of these documents approved by Town Attorney;
e. Verification of valid business license if required; and/or f. Sole or single source memorandum for approval by Town Attorney. d. Upon receipt of a purchase requisition, the Finance Department reviews the document for accuracy and completeness. If the purchase requisition is not complete and/or accurate, a purchase order will not be issued, and the requesting Department will be notified of any necessary corrections. If the purchase requisition is complete and accurate, a purchase order will be issued in accordance with the guidelines of this policy.
e. Approval of the purchase requisition represents that the Department has sufficient funds available to pay for the purchase, all necessary documents are attached and acceptable, and the guidelines of this policy have been followed. f. A purchase order is required prior to the purchase being made or work commencing unless otherwise noted in this policy.
g. Purchases under $3,000 do not require a purchase order, but must be authorized by the purchasing Department per Section IX of this policy.
4. Purchase Orders
a. A purchase order is the principle document used to obtain goods and services for the Town.
b. Purchase orders are required for all goods or services costing over $3,000. c. A purchase order establishes an encumbrance against a program account. d. The Finance Department will issue a purchase order only after Town staff at all approval levels have first reviewed and approved the purchase requisition.
Approval levels are as follows:
a. Department Director or designee
b. Insurance verification by the Clerk Department if applicable c. Business License verification by Finance Department staff if applicable
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
19 of 23
POLICY NUMBER:
4-06
d. Approval for compliance with this policy by Finance Department e. Confirmation that the appropriate awarding authority has approved the purchase by Finance Department (i.e., Town Council).
5. Change Orders
a. Where the actual cost of goods exceeds 10% of the original purchase order, a change order must be requested from Finance by the responsible Department. b. Where the actual cost of goods is within 10% of the original purchase order amount, payment may be made subject to verification of the amount(s) by the responsible Department.
c. Where the actual cost of services differs from the original purchase order amount specified in the service contract, a contract amendment must be submitted by the Department with the change order request. d. Change orders that increase any purchase order of goods or services over $100,000 will require prior approval from Town Council. e. Documents outlining compliance with this policy must be submitted to Finance with the change order (i.e., a Council staff report).
6. Blanket Purchase Orders
a. Blanket purchase orders can be utilized for goods or services that are used by the Town for ongoing operations. For a blanket purchase order, vendors agree to honor a price for a given period of time, and the Town may not specifically know how much of the product will be consumed or where or when it will be consumed.
b. A blanket purchase order provides for obtaining pricing for anticipated but unidentified goods or services.
c. Blanket purchase orders have the same requirements for goods and services as outlined in this policy.
XIX. RECYCLED PRODUCTS AND MATERIALS
It is the Town’s intent to minimize negative environmental impacts of the Town’s activities by ensuring the procurement of services and products that reduce toxicity, maximize recyclability and recycled content, and conserve natural resources, material, and energy.
In 2016, Governor Brown signed into law Senate Bill 1383 (SB 1383), in a state-wide effort to reduce emissions of short-lived climate pollutants (SLCP). Beginning January 1, 2022, SB 1383 requires cities and counties to procure annually a quantity of recovered organic waste products. As there is so much paper present in the solid waste disposal stream, the procurement of recycled content and recyclable paper will grow demand for these products and support recycling to help meet the organic waste diversion goals of SB 1383.
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
20 of 23
POLICY NUMBER:
4-06
Town Departments and direct service providers to the Town, as applicable, must comply with the Town’s Organic Waste Product Procurement Procedure for purchasing and mandatory recordkeeping for paper products, printing and writing paper, and disposable kitchen and office supplies.
Requirements for purchasing paper products, printing and writing paper, and disposable kitchen and office supplies are as follows:
1. All purchases must contain 30 percent postconsumer recycled content, when available at no greater cost than nonrecycled products.
2. Products must be recyclable as defined by FTC “Green Guides.”
3. Departments must require vendors to certify postconsumer content and recyclability claims.
4. Departments/employees must provide records to the recordkeeping designee, as outlined in the Town Organic Waste Product Procurement Procedure, of all paper products, printing and writing paper, and disposable kitchen and office supplies purchased from a vendor within thirty days of the purchase (both recycled content and non-recycled content, if any is purchased). Records shall include a copy of the invoice or other documentation of purchase, written certifications for recycled-content purchases, purchaser name, quantity purchased, date purchased, and recycled content (including products that contain none), and if non-recycled content paper products and/or nonrecycled content printing and writing paper are provided, include a description of why recycled-content paper products and/or recycled content printing and writing paper were not provided.
Departments should meet the following guidelines for non-paper products, provided the goods are available within a reasonable timeframe, meet reasonable performance standards, and are available at a reasonable cost:
1. All computer products purchased by the Town should be in compliance with the Federal Energy Star program.
2. All pesticides purchased by the Town shall be of the least toxic available.
3. Whenever possible, goods and services procured by the Town shall be from businesses that are certified green businesses by the Bay Area Green Business Program.
XX. HEALTHY FOOD AND BEVERAGE GUIDELINES
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
21 of 23
POLICY NUMBER:
4-06
The Town of Los Gatos is committed to promoting and encouraging ways for Town staff, residents, and visitors to improve their overall health and wellness. One way to achieve the goal of supporting healthy living is to offer, purchase, and serve food and beverages of the greatest nutritional value and in appropriate serving sizes. The following guidelines help the Town promote a healthy work environment leading to greater job satisfaction, higher morale, and reduced health care costs and absenteeism. These guidelines are applicable when Town funds are being used and are not directed at individuals’ meals, snacks, or beverages purchased or brought from home using non-Town funds. The guidelines apply to Town-sponsored meetings, celebrations, events, and in vending machines on Town property.
2. Beverages
a. Water is presented as an attractive and appealing option. b. Sparkling water may be offered as an alternative to soda. c. Decaffeinated beverages are offered.
d. Coffee and tea may be served unsweetened.
e. Juices that provide more beneficial nutrients, like orange and grapefruit, are preferred.
f. Recommended beverages include water, fat-free or skim milk, non-dairy milk alternatives (i.e., soy, almond, or oat), 100% fruit or vegetable juices, diet beverages, calorie-free sports drinks, and low-calorie sparkling water products.
3. Food and Desserts
a. Healthy options are attractively presented and appealing. b. Reasonable portions are provided by cutting food in halves or quarters (i.e., cookies, sandwiches, or bagels are sliced in half). c. Either a fully plant-based offering or an attractive plant-based alternative is offered.
d. A gluten-free option is offered.
e. Foods are prepared using healthy cooking techniques such as baking, roasting, grilling, or steaming.
f. Desserts are served in small portion sizes and healthier food options such as fresh fruit are also provided.
g. Recommended foods include fruits, vegetable, whole grains, lean protein (i.e., skinless chicken breast, turkey, beans, tofu), and lower fat condiments such as vinaigrette, hummus, mustard, or salsa.
4. Food vending
a. Contents of package must be a single serving size.
b. No more than 35% calories from fat, with the exception of packages of nuts or seeds.
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
22 of 23
POLICY NUMBER:
4-06
c. At least one snack food item offered should meet the Food and Drug Administration’s definition of “low sodium.”
d. At least one snack item offered should contain at least two grams of dietary fiber per serving.
XXI. UNAUTHORIZED PURCHASES
Unauthorized purchases are required to be ratified by the appropriate awarding authority.
1. The employee making the unauthorized purchase must provide a written explanation of why the purchase was made.
2. The written explanation must be reviewed and approved by the appropriate awarding authority.
3. In the event that a vendor has been paid and the unauthorized purchase is not subsequently ratified, the employee may be held responsible for reimbursing the Town.
XXII. SURPLUS GOODS AND EQUIPMENT
The Town Manager or their designee has the authority to declare items with a market value of less than $100,000 surplus. Items with a market value greater than $100,000 will be formally declared surplus by the Town Council. Each Department shall periodically review its inventory and promptly notify the Town Manager of any surplus property. Proceeds from the sale or trade-in of surplus property shall be returned to the appropriate fund.
1. Surplus Disposal: The declaring authority shall determine or approve one of the following methods of disposition that is most appropriate and in the best interest of the Town:
a. Transfer to another Department: Surplus property may be transferred between Town Departments.
b. Trade-In: Surplus property may be offered as a trade-in credit toward the acquisition of new property.
c. Disposal: The surplus property may be offered for sale. All surplus property is for sale “as is,” with no warranty, guarantee, or representation of any kind, expressed or implied, as to the condition, utility, or usability of the property offered for sale.
2. Methods of Disposal:
ITEM NO. 7.
TITLE: Purchasing Policy PAGE:
23 of 23
POLICY NUMBER:
4-06
a. Public Auction: Surplus property may be sold at public auction. Town staff may conduct public auctions, use online auction sites, or the Town may contract with a professional auctioneer.
b. Sealed Bids: Sealed bids may be solicited for the sale of surplus property.
Surplus property disposed of in this manner should be sold to the highest responsible bidder.
c. Selling for Scrap: Surplus property may be sold as scrap if the declaring authority deems that the value of the raw material exceeds the value of the property as a whole.
d. Negotiated Sale: Surplus property may be sold outright if the declaring authority determines that only one known buyer is available or interested in acquiring the property.
e. Donation: Surplus property unlikely to generate significant revenue may be donated to other public agencies or to non-profit organizations. Any non-profit must be qualified under section 501(c)(3) of the Internal Revenue Code in order to receive a donation.
f. No Value Item: Where the Town Manager determines that specific supplies or equipment are surplus and of minimal value to the Town due to spoilage, obsolescence, or other cause; or where the Town Manager determines that cost of disposal of such supplies or equipment would exceed the recovery value, the Town Manager shall dispose of the supplies in such manner as he or she deems appropriate and in the best interest of the Town.
APPROVED AS TO FORM:
________
Gabrielle Whelan, Town Attorney
ITEM NO. 7.
PREPARED BY: Kristina Alfaro
Administrative Services Director
Reviewed by: Town Manager, Assistant Town Manager, and Town Attorney 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 10/06/2026
ITEM NO: 8
DATE: October 6, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive the July 2026 Expenditure and Revenue Reports and Approve the Monthly and Quarterly Reporting Formats
RECOMMENDATION: Receive the July 2026 Expenditure and Revenue Reports and approve the Monthly Reporting format and Quarterly Reporting Format.
FISCAL IMPACT:
This item has no fiscal impact. These monthly reports are intended to enhance transparency, support monitoring of townwide spending, and ensure timely administrative oversight.
STRATEGIC PRIORITY:
Revenue and expenditure reporting supports the Council’s Strategic Priority of Fiscal Stability by ensuring timely monthly review of the Town’s finances.
BACKGROUND:
As part of the Town’s new ongoing monthly financial reporting process, staff is providing standardized expenditure and revenue reports that present financial activity by fund and expense and revenue category levels.
All the attached reports were presented to the Finance Commission at its September 14, 2026, meeting. In addition, reports by department and by department and category, and historical July reports for the last three years were also provided. The Commission requested that the reports be presented in summary to allow for easy consumption of the information. The reports being presented to Council have been adjusted to include only fund and revenue and expenditure category views by fund for July 2026. This ensures the Council still has a view of
ITEM NO. 8.
PAGE 2 OF 3
SUBJECT: Receive the July 2026 Expenditure and Revenue Reports and Approve Monthly and Quarterly Reporting Formats
DATE: October 6, 2026
expenses by fund that aligns with how the budget is approved. Adding the by category component allows for a more in-depth view using categories that align with reporting levels that will be included in the proposed and final budget.
Financial reporting is completed two months in arrears to allow the soft close of each accounting period, verification of transactions, and reconciliation of revenue postings. As a result, July 2026 expenditure and revenue reports were presented at the September Finance Commission meeting.
DISCUSSION:
The July 2026 monthly financial reports provide expenditure and revenue information with the following breakdowns:
1. By Fund
Shows total expenditures and revenues for each Town fund, allowing for high-level review of fiscal performance across all funding sources.
2. By Fund and Category
Provides expenditures and revenues within each fund divided into major categories such as salaries, benefits, contracts, capital, town services, taxes, and other revenue and expense types.
Included in this staff report are monthly and quarterly report formats:
A. Monthly Reporting Format – Provides high-level analysis by fund type and breaks out percent collected or expended by year. Provides detailed analysis by fund, with a detailed by category analysis for the General Fund and vacancy savings.
B. Quarterly Reporting – Most detailed analysis by fund, General Fund analysis by category and department. Provides background information on the report and uniqueness of reporting for July. This analysis was provided to the Finance Commission.
CONCLUSION:
The July 2026 reports show total revenues at 1.6% of the revised budget and total expenditures and encumbrances at 15.1%. General Fund revenues are at 1.4%, and General Fund expenditures and encumbrances are at 8.0%. Staff recommends that Council receive the reports and approve the monthly financial-reporting format in Attachment 5 and the quarterly financial-reporting format in Attachment 6 for use beginning with the August 2026 reporting period, with the quarterly format replacing the monthly narrative report for each quarterending reporting period (Sep, Dec, Mar).
ITEM NO. 8.
PAGE 3 OF 3
SUBJECT: Receive the July 2026 Expenditure and Revenue Reports and Approve Monthly and Quarterly Reporting Formats
DATE: October 6, 2026
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Year-to-Date Budget Report Expense by Fund for July
2. Year-to-Date Budget Report Expense by Fund and Category for July
3. Year-to-Date Budget Report Revenue by Fund for July
4. Year-to-Date Budget Report Revenue by Fund and Category July
5. Monthly Reporting Format – July
6. Quarterly Reporting Format – July
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT EXPENSE
Report generated: 09/04/2026 12:05
User: kalfaro
Program ID: glytdbud
BY FUND
FOR 2027 01
ORIGINAL REVISED AVAILABLE PCT
APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 111 GENERAL FUND 66,201,027 66,201,027 3,158,475.35 3,158,475.35 2,238,163.30 60,804,388.33 8.2% 121 MEASURE G FUND 1,267,556 1,267,556 .00 .00 .00 1,267,556.00 .0% 222 URBAN RUNOFF FUND 272,433 272,433 20,890.49 20,890.49 .00 251,542.56 7.7% 231 BLACKWELL DISTRICT 3,544 3,544 .00 .00 1,116.00 2,428.00 31.5% 232 KENNEDY MEADOWS DISTRICT 12,695 12,695 .00 .00 7,308.00 5,387.00 57.6% 233 GEMINI COURT DISTRICT 1,628 1,628 .00 .00 552.00 1,076.00 33.9% 234 SANTA ROSA HEIGHTS DISTRICT 8,087 8,087 .00 .00 6,708.00 1,379.00 82.9% 235 VASONA HEIGHTS DISTRICT 8,957 8,957 .00 .00 4,500.00 4,456.62 50.2% 236 HILLBROOK DISTRICT 5,578 5,578 .00 .00 1,680.00 3,897.52 30.1% 251 LOS GATOS THEATRE 82,919 82,919 219.74 219.74 10,000.00 72,699.10 12.3% 261 LIBRARY TRUST DONATIONS 72,000 72,000 3,471.04 3,471.04 .00 68,528.96 4.8% 263 MCCLENDON TRUST 1,700 1,700 .00 .00 .00 1,700.00 .0% 264 BARBARA J CASSIN TRUST 6,000 6,000 .00 .00 .00 6,000.00 .0% 411 CAPITAL PROJECTS FUND 4,254,364 4,254,364 90,368.16 90,368.16 -5,812.00 4,169,807.71 2.0% 421 GRANT FUNDED PROJECTS 36,750 36,750 .00 .00 .00 36,750.00 .0% 462 STORM BASIN 2 130,000 130,000 .00 .00 227,818.00 -97,818.00 175.2% 471 TRAFFIC MITIGATION FUND 10,000 10,000 .00 .00 .00 10,000.00 .0% 481 GAS TAX FUND 2,023,807 2,023,807 207.49 207.49 2,194,022.21 -170,422.70 108.4% 611 ABAG TOWN LIABILITY FUND 1,416,500 1,416,500 1,257,869.00 1,257,869.00 .00 158,631.00 88.8% 612 WORKERS COMPENSATION FUND 1,762,379 1,762,379 585,468.72 585,468.72 53,660.30 1,123,249.98 36.3% 621 INFORMATION TECHNOLOGY 1,313,722 1,313,722 550,870.87 550,870.87 82,517.73 680,333.00 48.2% 631 EQUIPMENT REPLACEMENT FUND 338,843 338,843 .00 .00 .00 338,843.29 .0% 633 FACILITIES MAINTENANCE FUND 1,776,027 1,776,027 82,607.96 82,607.96 457,588.65 1,235,830.12 30.4% 942 SA TRUST FUND 3,938,045 3,938,045 1,773,205.75 1,773,205.75 .00 2,164,839.18 45.0% GRAND TOTAL 84,944,559 84,944,559 7,523,654.57 7,523,654.57 5,279,822.19 72,141,082.67 15.1% ** END OF REPORT - Generated by Kristina Alfaro **
ATTACHMENT 1
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT EXPENSE
Report generated: 09/04/2026 12:08
User: kalfaro
Program ID: glytdbud
BY FUND AND CATEGORY
FOR 2027 01
ORIGINAL REVISED AVAILABLE PCT
APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 111 GENERAL FUND
5A SALARIES 24,176,333 24,176,333 1,170,569.14 1,170,569.14 .00 23,005,764.02 4.8% 5B OVERTIME 1,457,000 1,457,000 65,827.47 65,827.47 .00 1,391,172.53 4.5% 5C PERS 10,800,788 10,800,788 680,120.56 680,120.56 .00 10,120,667.93 6.3% 5D MEDICAL BENEFITS 3,371,803 3,371,803 242,972.69 242,972.69 .00 3,128,830.55 7.2% 5E OTHER BENEFITS 2,922,678 2,922,678 182,824.03 182,824.03 .00 2,739,853.83 6.3% 5F RETIREE MEDICAL 2,193,606 2,193,606 185,756.82 185,756.82 .00 2,007,849.18 8.5% 5G MATERIALS & SUPPLIES 1,162,435 1,162,435 43,640.39 43,640.39 108,638.28 1,010,156.53 13.1% 5H CONTRACTS 6,418,548 6,418,548 363,097.85 363,097.85 1,811,632.69 4,243,817.48 33.9% 5I UTILITIES 1,001,460 1,001,460 79,553.59 79,553.59 155,347.20 766,559.43 23.5% 5J GRANTS AND AWARDS 283,950 283,950 .00 .00 15,000.00 268,950.00 5.3% 5K PASS THRU 1,462,593 1,462,593 8,620.50 8,620.50 147,545.13 1,306,427.37 10.7% 5L MISCELLANEOUS 0 0 .00 .00 .00 .00 .0%
5M INT SERVICE CHARGES 5,065,614 5,065,614 135,492.31 135,492.31 .00 4,930,121.48 2.7% 5N DEBT SERVICE 2,057,884 2,057,884 .00 .00 .00 2,057,884.00 .0% 5O CAPITAL PROJECTS 15,000 15,000 .00 .00 .00 15,000.00 .0% 5P TRANSFERS OUT 3,811,334 3,811,334 .00 .00 .00 3,811,334.00 .0% TOTAL GENERAL FUND 66,201,027 66,201,027 3,158,475.35 3,158,475.35 2,238,163.30 60,804,388.33 8.2% 121 MEASURE G FUND
5H CONTRACTS 50,520 50,520 .00 .00 .00 50,520.00 .0%
5K PASS THRU 1,217,036 1,217,036 .00 .00 .00 1,217,036.00 .0% TOTAL MEASURE G FUND 1,267,556 1,267,556 .00 .00 .00 1,267,556.00 .0% 222 URBAN RUNOFF FUND
5A SALARIES 128,934 128,934 5,714.85 5,714.85 .00 123,218.96 4.4% 5C PERS 40,378 40,378 2,690.35 2,690.35 .00 37,687.43 6.7% 5D MEDICAL BENEFITS 14,209 14,209 843.99 843.99 .00 13,365.33 5.9% 5E OTHER BENEFITS 9,020 9,020 548.78 548.78 .00 8,471.52 6.1% 5G MATERIALS & SUPPLIES 3,717 3,717 .00 .00 .00 3,717.00 .0% 5H CONTRACTS 55,406 55,406 11,241.02 11,241.02 .00 44,164.98 20.3% 5I UTILITIES 14,265 14,265 -522.89 -522.89 .00 14,787.89 -3.7% 5M INT SERVICE CHARGES 6,504 6,504 374.39 374.39 .00 6,129.45 5.8% Attachment 2
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT EXPENSE
Report generated: 09/04/2026 12:08
User: kalfaro
Program ID: glytdbud
BY FUND AND CATEGORY
FOR 2027 01
ORIGINAL REVISED AVAILABLE PCT
APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED TOTAL URBAN RUNOFF FUND 272,433 272,433 20,890.49 20,890.49 .00 251,542.56 7.7% 231 BLACKWELL DISTRICT
5H CONTRACTS 1,484 1,484 .00 .00 1,116.00 368.00 75.2%
5I UTILITIES 1,600 1,600 .00 .00 .00 1,600.00 .0%
5P TRANSFERS OUT 460 460 .00 .00 .00 460.00 .0%
TOTAL BLACKWELL DISTRICT 3,544 3,544 .00 .00 1,116.00 2,428.00 31.5% 232 KENNEDY MEADOWS DISTRICT
5H CONTRACTS 8,385 8,385 .00 .00 7,308.00 1,077.00 87.2% 5I UTILITIES 2,800 2,800 .00 .00 .00 2,800.00 .0%
5P TRANSFERS OUT 1,510 1,510 .00 .00 .00 1,510.00 .0%
TOTAL KENNEDY MEADOWS DISTRICT 12,695 12,695 .00 .00 7,308.00 5,387.00 57.6% 233 GEMINI COURT DISTRICT
5H CONTRACTS 1,018 1,018 .00 .00 552.00 466.00 54.2%
5P TRANSFERS OUT 610 610 .00 .00 .00 610.00 .0%
TOTAL GEMINI COURT DISTRICT 1,628 1,628 .00 .00 552.00 1,076.00 33.9% 234 SANTA ROSA HEIGHTS DISTRICT
5H CONTRACTS 7,427 7,427 .00 .00 6,708.00 719.00 90.3%
5P TRANSFERS OUT 660 660 .00 .00 .00 660.00 .0%
TOTAL SANTA ROSA HEIGHTS DISTRICT 8,087 8,087 .00 .00 6,708.00 1,379.00 82.9% 235 VASONA HEIGHTS DISTRICT
Attachment 2
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT EXPENSE
Report generated: 09/04/2026 12:08
User: kalfaro
Program ID: glytdbud
BY FUND AND CATEGORY
FOR 2027 01
ORIGINAL REVISED AVAILABLE PCT
235 VASONA HEIGHTS DISTRICT APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 5H CONTRACTS 5,138 5,138 .00 .00 4,500.00 638.05 87.6%
5I UTILITIES 2,389 2,389 .00 .00 .00 2,388.57 .0%
5P TRANSFERS OUT 1,430 1,430 .00 .00 .00 1,430.00 .0%
TOTAL VASONA HEIGHTS DISTRICT 8,957 8,957 .00 .00 4,500.00 4,456.62 50.2% 236 HILLBROOK DISTRICT
5H CONTRACTS 2,055 2,055 .00 .00 1,680.00 375.40 81.7%
5I UTILITIES 3,272 3,272 .00 .00 .00 3,272.12 .0%
5P TRANSFERS OUT 250 250 .00 .00 .00 250.00 .0%
TOTAL HILLBROOK DISTRICT 5,578 5,578 .00 .00 1,680.00 3,897.52 30.1% 251 LOS GATOS THEATRE
5H CONTRACTS 15,696 15,696 .00 .00 10,000.00 5,696.00 63.7% 5I UTILITIES 67,223 67,223 219.74 219.74 .00 67,003.10 .3% TOTAL LOS GATOS THEATRE 82,919 82,919 219.74 219.74 10,000.00 72,699.10 12.3% 261 LIBRARY TRUST DONATIONS
5H CONTRACTS 37,000 37,000 3,471.04 3,471.04 .00 33,528.96 9.4% 5L MISCELLANEOUS 35,000 35,000 .00 .00 .00 35,000.00 .0% TOTAL LIBRARY TRUST DONATIONS 72,000 72,000 3,471.04 3,471.04 .00 68,528.96 4.8% 263 MCCLENDON TRUST
5G MATERIALS & SUPPLIES 1,700 1,700 .00 .00 .00 1,700.00 .0% TOTAL MCCLENDON TRUST 1,700 1,700 .00 .00 .00 1,700.00 .0% 264 BARBARA J CASSIN TRUST
Attachment 2
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT EXPENSE
Report generated: 09/04/2026 12:08
User: kalfaro
Program ID: glytdbud
BY FUND AND CATEGORY
FOR 2027 01
ORIGINAL REVISED AVAILABLE PCT
264 BARBARA J CASSIN TRUST APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 5G MATERIALS & SUPPLIES 6,000 6,000 .00 .00 .00 6,000.00 .0% TOTAL BARBARA J CASSIN TRUST 6,000 6,000 .00 .00 .00 6,000.00 .0% 411 CAPITAL PROJECTS FUND
5O CAPITAL PROJECTS 3,812,873 3,812,873 90,368.16 90,368.16 -5,812.00 3,728,316.71 2.2% 5P TRANSFERS OUT 441,491 441,491 .00 .00 .00 441,491.00 .0% TOTAL CAPITAL PROJECTS FUND 4,254,364 4,254,364 90,368.16 90,368.16 -5,812.00 4,169,807.71 2.0% 421 GRANT FUNDED PROJECTS
5O CAPITAL PROJECTS 36,750 36,750 .00 .00 .00 36,750.00 .0% TOTAL GRANT FUNDED PROJECTS 36,750 36,750 .00 .00 .00 36,750.00 .0% 462 STORM BASIN 2
5O CAPITAL PROJECTS 130,000 130,000 .00 .00 227,818.00 -97,818.00 175.2% TOTAL STORM BASIN 2 130,000 130,000 .00 .00 227,818.00 -97,818.00 175.2% 471 TRAFFIC MITIGATION FUND
5P TRANSFERS OUT 10,000 10,000 .00 .00 .00 10,000.00 .0% TOTAL TRAFFIC MITIGATION FUND 10,000 10,000 .00 .00 .00 10,000.00 .0% 481 GAS TAX FUND
5O CAPITAL PROJECTS 1,917,807 1,917,807 207.49 207.49 2,194,022.21 -276,422.70 114.4% 5P TRANSFERS OUT 106,000 106,000 .00 .00 .00 106,000.00 .0% TOTAL GAS TAX FUND 2,023,807 2,023,807 207.49 207.49 2,194,022.21 -170,422.70 108.4% Attachment 2
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT EXPENSE
Report generated: 09/04/2026 12:08
User: kalfaro
Program ID: glytdbud
BY FUND AND CATEGORY
FOR 2027 01
ORIGINAL REVISED AVAILABLE PCT
611 ABAG TOWN LIABILITY FUND APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 611 ABAG TOWN LIABILITY FUND
5H CONTRACTS 1,416,500 1,416,500 1,257,869.00 1,257,869.00 .00 158,631.00 88.8% TOTAL ABAG TOWN LIABILITY FUND 1,416,500 1,416,500 1,257,869.00 1,257,869.00 .00 158,631.00 88.8% 612 WORKERS COMPENSATION FUND
5H CONTRACTS 1,762,379 1,762,379 585,468.72 585,468.72 53,660.30 1,123,249.98 36.3% TOTAL WORKERS COMPENSATION FUND 1,762,379 1,762,379 585,468.72 585,468.72 53,660.30 1,123,249.98 36.3% 621 INFORMATION TECHNOLOGY
5G MATERIALS & SUPPLIES 336,520 336,520 217.28 217.28 61,697.28 274,605.44 18.4% 5H CONTRACTS 956,742 956,742 548,405.88 548,405.88 20,820.45 387,515.27 59.5% 5I UTILITIES 20,460 20,460 2,247.71 2,247.71 .00 18,212.29 11.0% TOTAL INFORMATION TECHNOLOGY 1,313,722 1,313,722 550,870.87 550,870.87 82,517.73 680,333.00 48.2% 631 EQUIPMENT REPLACEMENT FUND
5O CAPITAL PROJECTS 338,843 338,843 .00 .00 .00 338,843.29 .0% TOTAL EQUIPMENT REPLACEMENT FUND 338,843 338,843 .00 .00 .00 338,843.29 .0% 633 FACILITIES MAINTENANCE FUND
5G MATERIALS & SUPPLIES 78,794 78,794 2,917.85 2,917.85 6,461.52 69,414.93 11.9% 5H CONTRACTS 628,835 628,835 32,887.89 32,887.89 451,127.13 144,820.41 77.0% 5I UTILITIES 733,314 733,314 46,802.22 46,802.22 .00 686,511.78 6.4% 5L MISCELLANEOUS 335,083 335,083 .00 .00 .00 335,083.00 .0% TOTAL FACILITIES MAINTENANCE FUND 1,776,027 1,776,027 82,607.96 82,607.96 457,588.65 1,235,830.12 30.4% 942 SA TRUST FUND
Attachment 2
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT EXPENSE
Report generated: 09/04/2026 12:08
User: kalfaro
Program ID: glytdbud
BY FUND AND CATEGORY
FOR 2027 01
ORIGINAL REVISED AVAILABLE PCT
942 SA TRUST FUND APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 5A SALARIES 1,247 1,247 65.41 65.41 .00 1,181.61 5.2%
5B OVERTIME 0 0 3.33 3.33 .00 -3.33 100.0%
5C PERS 395 395 27.06 27.06 .00 368.39 6.8%
5E OTHER BENEFITS 120 120 7.62 7.62 .00 112.13 6.4%
5H CONTRACTS 5,395 5,395 1,760.00 1,760.00 .00 3,635.00 32.6% 5L MISCELLANEOUS 120,823 120,823 .00 .00 .00 120,823.01 .0% 5M INT SERVICE CHARGES 64 64 4.83 4.83 .00 58.87 7.6%
5N DEBT SERVICE 3,810,001 3,810,001 1,771,337.50 1,771,337.50 .00 2,038,663.50 46.5% TOTAL SA TRUST FUND 3,938,045 3,938,045 1,773,205.75 1,773,205.75 .00 2,164,839.18 45.0% GRAND TOTAL 84,944,559 84,944,559 7,523,654.57 7,523,654.57 5,279,822.19 72,141,082.67 15.1% ** END OF REPORT - Generated by Kristina Alfaro **
Attachment 2
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 09/04/2026 12:17
User: kalfaro
Program ID: glytdbud
BY FUND
FOR 2027 01
ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT
ESTIM REV EST REV REVENUE REVENUE REVENUE COLL
111 GENERAL FUND 63,067,086 63,067,086 879,028.30 879,028.30 62,188,057.70 1.4% 121 MEASURE G FUND 1,358,000 1,358,000 .00 .00 1,358,000.00 .0% 222 URBAN RUNOFF FUND 315,072 315,072 .00 .00 315,072.00 .0% 231 BLACKWELL DISTRICT 3,210 3,210 .00 .00 3,210.00 .0% 232 KENNEDY MEADOWS DISTRICT 10,605 10,605 .00 .00 10,605.00 .0% 233 GEMINI COURT DISTRICT 4,750 4,750 .00 .00 4,750.00 .0% 234 SANTA ROSA HEIGHTS DISTRICT 4,550 4,550 .00 .00 4,550.00 .0% 235 VASONA HEIGHTS DISTRICT 10,075 10,075 .00 .00 10,075.00 .0% 236 HILLBROOK DISTRICT 6,040 6,040 .00 .00 6,040.00 .0% 251 LOS GATOS THEATRE 121,100 121,100 15,168.00 15,168.00 105,932.00 12.5% 261 LIBRARY TRUST DONATIONS 71,000 71,000 .00 .00 71,000.00 .0% 262 NESS TRUST 400 400 .00 .00 400.00 .0%
263 MCCLENDON TRUST 2,000 2,000 .00 .00 2,000.00 .0%
264 BARBARA J CASSIN TRUST 6,000 6,000 .00 .00 6,000.00 .0% 411 CAPITAL PROJECTS FUND 1,263,873 1,263,873 8,616.00 8,616.00 1,255,256.87 .7% 413 LONG-TERM COMMUNITY BENEFIT 3,000,000 3,000,000 .00 .00 3,000,000.00 .0% 421 GRANT FUNDED PROJECTS 36,750 36,750 341,369.42 341,369.42 -304,619.42 928.9% 461 STORM BASIN 1 70,337 70,337 .00 .00 70,336.92 .0%
462 STORM BASIN 2 117,302 117,302 .00 .00 117,302.18 .0% 463 STORM BASIN 3 -3,446 -3,446 .00 .00 -3,445.78 .0%
471 TRAFFIC MITIGATION FUND 10,000 10,000 .00 .00 10,000.00 .0% 472 UTILITY UNDERGROUND TAX FUND 46,346 46,346 .00 .00 46,346.10 .0% 481 GAS TAX FUND 1,919,278 1,919,278 .00 .00 1,919,278.10 .0% 611 ABAG TOWN LIABILITY FUND 1,984,001 1,984,001 .00 .00 1,984,000.73 .0% 612 WORKERS COMPENSATION FUND 1,997,508 1,997,508 10,020.02 10,020.02 1,987,488.38 .5% 621 INFORMATION TECHNOLOGY 1,313,722 1,313,722 8,734.54 8,734.54 1,304,987.06 .7% 631 EQUIPMENT REPLACEMENT FUND 679,960 679,960 14,960.41 14,960.41 664,999.59 2.2% 633 FACILITIES MAINTENANCE FUND 2,286,974 2,286,974 50,005.69 50,005.69 2,236,967.91 2.2% 732 PERS CEPPT PENSION TRUST 390,000 390,000 .00 .00 390,000.00 .0% 942 SA TRUST FUND 3,923,926 3,923,926 .00 .00 3,923,926.00 .0% GRAND TOTAL 84,016,419 84,016,419 1,327,902.38 1,327,902.38 82,688,516.34 1.6% ** END OF REPORT - Generated by Kristina Alfaro **
Attachment 3
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 09/04/2026 12:15
User: kalfaro
Program ID: glytdbud
BY FUND, AND CATEGORY
FOR 2027 01
ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT
ESTIM REV EST REV REVENUE REVENUE REVENUE COLL
111 GENERAL FUND
4A PROPERTY TAX 28,224,841 28,224,841 .00 .00 28,224,841.00 .0% 4B SALES & USE TAX 8,380,517 8,380,517 .00 .00 8,380,517.00 .0% 4D TRANSIENT OCCUPANCY 2,278,360 2,278,360 88,988.28 88,988.28 2,189,371.72 3.9% 4E BUSINESS LIC & OTHER 2,686,760 2,686,760 .00 .00 2,686,760.00 .0% 4F FRANCHISE FEES 1,089,210 1,089,210 .00 .00 1,089,210.00 .0% 4H LICENSES & PERMITS 7,802,811 7,802,811 274,751.03 274,751.03 7,528,059.97 3.5% 4I TOWN SERVICES 3,906,037 3,906,037 158,683.59 158,683.59 3,747,353.41 4.1% 4J OTHER SOURCES 2,945,518 2,945,518 273,196.99 273,196.99 2,672,321.01 9.3% 4K INTERGOVERNMENTAL 741,477 741,477 -47,537.59 -47,537.59 789,014.59 -6.4% 4L PASS THRU 2,534,469 2,534,469 130,946.00 130,946.00 2,403,523.00 5.2% 4M TRANSFERS IN 562,411 562,411 .00 .00 562,411.00 .0%
4N DEBT SERVICE REMIB 1,914,675 1,914,675 .00 .00 1,914,675.00 .0% TOTAL GENERAL FUND 63,067,086 63,067,086 879,028.30 879,028.30 62,188,057.70 1.4% 121 MEASURE G FUND
4C MEASURE G 1,358,000 1,358,000 .00 .00 1,358,000.00 .0% TOTAL MEASURE G FUND 1,358,000 1,358,000 .00 .00 1,358,000.00 .0% 222 URBAN RUNOFF FUND
4H LICENSES & PERMITS 315,072 315,072 .00 .00 315,072.00 .0% TOTAL URBAN RUNOFF FUND 315,072 315,072 .00 .00 315,072.00 .0% 231 BLACKWELL DISTRICT
4A PROPERTY TAX 3,160 3,160 .00 .00 3,160.00 .0%
4J OTHER SOURCES 50 50 .00 .00 50.00 .0%
TOTAL BLACKWELL DISTRICT 3,210 3,210 .00 .00 3,210.00 .0% 232 KENNEDY MEADOWS DISTRICT
Attachment 4
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 09/04/2026 12:15
User: kalfaro
Program ID: glytdbud
BY FUND, AND CATEGORY
FOR 2027 01
ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT
ESTIM REV EST REV REVENUE REVENUE REVENUE COLL
4A PROPERTY TAX 10,275 10,275 .00 .00 10,275.00 .0%
4J OTHER SOURCES 330 330 .00 .00 330.00 .0%
TOTAL KENNEDY MEADOWS DISTRICT 10,605 10,605 .00 .00 10,605.00 .0% 233 GEMINI COURT DISTRICT
4A PROPERTY TAX 4,600 4,600 .00 .00 4,600.00 .0%
4J OTHER SOURCES 150 150 .00 .00 150.00 .0%
TOTAL GEMINI COURT DISTRICT 4,750 4,750 .00 .00 4,750.00 .0% 234 SANTA ROSA HEIGHTS DISTRICT
4A PROPERTY TAX 4,500 4,500 .00 .00 4,500.00 .0%
4J OTHER SOURCES 50 50 .00 .00 50.00 .0%
TOTAL SANTA ROSA HEIGHTS DISTRICT 4,550 4,550 .00 .00 4,550.00 .0% 235 VASONA HEIGHTS DISTRICT
4A PROPERTY TAX 9,735 9,735 .00 .00 9,735.00 .0%
4J OTHER SOURCES 340 340 .00 .00 340.00 .0%
TOTAL VASONA HEIGHTS DISTRICT 10,075 10,075 .00 .00 10,075.00 .0% 236 HILLBROOK DISTRICT
4A PROPERTY TAX 5,950 5,950 .00 .00 5,950.00 .0%
4J OTHER SOURCES 90 90 .00 .00 90.00 .0%
TOTAL HILLBROOK DISTRICT 6,040 6,040 .00 .00 6,040.00 .0% 251 LOS GATOS THEATRE
Attachment 4
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 09/04/2026 12:15
User: kalfaro
Program ID: glytdbud
BY FUND, AND CATEGORY
FOR 2027 01
ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT
ESTIM REV EST REV REVENUE REVENUE REVENUE COLL
4J OTHER SOURCES 121,100 121,100 15,168.00 15,168.00 105,932.00 12.5% TOTAL LOS GATOS THEATRE 121,100 121,100 15,168.00 15,168.00 105,932.00 12.5% 261 LIBRARY TRUST DONATIONS
4J OTHER SOURCES 71,000 71,000 .00 .00 71,000.00 .0%
TOTAL LIBRARY TRUST DONATIONS 71,000 71,000 .00 .00 71,000.00 .0% 262 NESS TRUST
4J OTHER SOURCES 400 400 .00 .00 400.00 .0%
TOTAL NESS TRUST 400 400 .00 .00 400.00 .0%
263 MCCLENDON TRUST
4J OTHER SOURCES 2,000 2,000 .00 .00 2,000.00 .0%
TOTAL MCCLENDON TRUST 2,000 2,000 .00 .00 2,000.00 .0%
264 BARBARA J CASSIN TRUST
4J OTHER SOURCES 6,000 6,000 .00 .00 6,000.00 .0%
TOTAL BARBARA J CASSIN TRUST 6,000 6,000 .00 .00 6,000.00 .0% 411 CAPITAL PROJECTS FUND
4H LICENSES & PERMITS 120,000 120,000 .00 .00 120,000.00 .0% 4J OTHER SOURCES 106,000 106,000 8,616.00 8,616.00 97,384.00 8.1% 4K INTERGOVERNMENTAL 1,037,873 1,037,873 .00 .00 1,037,872.87 .0% TOTAL CAPITAL PROJECTS FUND 1,263,873 1,263,873 8,616.00 8,616.00 1,255,256.87 .7% Attachment 4
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 09/04/2026 12:15
User: kalfaro
Program ID: glytdbud
BY FUND, AND CATEGORY
FOR 2027 01
ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT
ESTIM REV EST REV REVENUE REVENUE REVENUE COLL
413 LONG-TERM COMMUNITY BENEFIT
4M TRANSFERS IN 3,000,000 3,000,000 .00 .00 3,000,000.00 .0% TOTAL LONG-TERM COMMUNITY BENEFIT 3,000,000 3,000,000 .00 .00 3,000,000.00 .0% 421 GRANT FUNDED PROJECTS
4K INTERGOVERNMENTAL 36,750 36,750 341,369.42 341,369.42 -304,619.42 928.9% TOTAL GRANT FUNDED PROJECTS 36,750 36,750 341,369.42 341,369.42 -304,619.42 928.9% 461 STORM BASIN 1
4H LICENSES & PERMITS 48,695 48,695 .00 .00 48,695.31 .0% 4J OTHER SOURCES 21,642 21,642 .00 .00 21,641.61 .0%
TOTAL STORM BASIN 1 70,337 70,337 .00 .00 70,336.92 .0% 462 STORM BASIN 2
4H LICENSES & PERMITS 48,695 48,695 .00 .00 48,695.31 .0% 4J OTHER SOURCES 68,607 68,607 .00 .00 68,606.87 .0%
TOTAL STORM BASIN 2 117,302 117,302 .00 .00 117,302.18 .0% 463 STORM BASIN 3
4H LICENSES & PERMITS 2,627 2,627 .00 .00 2,626.50 .0%
4J OTHER SOURCES -6,072 -6,072 .00 .00 -6,072.28 .0%
TOTAL STORM BASIN 3 -3,446 -3,446 .00 .00 -3,445.78 .0% 471 TRAFFIC MITIGATION FUND
Attachment 4
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 09/04/2026 12:15
User: kalfaro
Program ID: glytdbud
BY FUND, AND CATEGORY
FOR 2027 01
ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT
ESTIM REV EST REV REVENUE REVENUE REVENUE COLL
4J OTHER SOURCES 10,000 10,000 .00 .00 10,000.00 .0%
TOTAL TRAFFIC MITIGATION FUND 10,000 10,000 .00 .00 10,000.00 .0% 472 UTILITY UNDERGROUND TAX FUND
4E BUSINESS LIC & OTHER 30,000 30,000 .00 .00 30,000.00 .0% 4J OTHER SOURCES 16,346 16,346 .00 .00 16,346.10 .0%
TOTAL UTILITY UNDERGROUND TAX FUN 46,346 46,346 .00 .00 46,346.10 .0% 481 GAS TAX FUND
4J OTHER SOURCES 1,471 1,471 .00 .00 1,471.10 .0%
4K INTERGOVERNMENTAL 1,917,807 1,917,807 .00 .00 1,917,807.00 .0% TOTAL GAS TAX FUND 1,919,278 1,919,278 .00 .00 1,919,278.10 .0% 611 ABAG TOWN LIABILITY FUND
4I TOWN SERVICES 1,984,001 1,984,001 .00 .00 1,984,000.73 .0% TOTAL ABAG TOWN LIABILITY FUND 1,984,001 1,984,001 .00 .00 1,984,000.73 .0% 612 WORKERS COMPENSATION FUND
4I TOWN SERVICES 1,997,508 1,997,508 .00 .00 1,997,508.40 .0% 4J OTHER SOURCES 0 0 10,020.02 10,020.02 -10,020.02 100.0% TOTAL WORKERS COMPENSATION FUND 1,997,508 1,997,508 10,020.02 10,020.02 1,987,488.38 .5% 621 INFORMATION TECHNOLOGY
4I TOWN SERVICES 1,313,722 1,313,722 8,734.54 8,734.54 1,304,987.06 .7% Attachment 4
ITEM NO. 8.
Town of Los Gatos ~CA 55122~
YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 09/04/2026 12:15
User: kalfaro
Program ID: glytdbud
BY FUND, AND CATEGORY
FOR 2027 01
ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT
ESTIM REV EST REV REVENUE REVENUE REVENUE COLL
TOTAL INFORMATION TECHNOLOGY 1,313,722 1,313,722 8,734.54 8,734.54 1,304,987.06 .7% 631 EQUIPMENT REPLACEMENT FUND
4I TOWN SERVICES 659,960 659,960 .00 .00 659,960.00 .0% 4J OTHER SOURCES 20,000 20,000 14,960.41 14,960.41 5,039.59 74.8% TOTAL EQUIPMENT REPLACEMENT FUND 679,960 679,960 14,960.41 14,960.41 664,999.59 2.2% 633 FACILITIES MAINTENANCE FUND
4E BUSINESS LIC & OTHER 25,000 25,000 .00 .00 25,000.00 .0% 4I TOWN SERVICES 1,234,499 1,234,499 .00 .00 1,234,499.00 .0% 4J OTHER SOURCES 216,141 216,141 50,005.69 50,005.69 166,134.91 23.1% 4M TRANSFERS IN 811,334 811,334 .00 .00 811,334.00 .0%
TOTAL FACILITIES MAINTENANCE FUND 2,286,974 2,286,974 50,005.69 50,005.69 2,236,967.91 2.2% 732 PERS CEPPT PENSION TRUST
4J OTHER SOURCES 390,000 390,000 .00 .00 390,000.00 .0% TOTAL PERS CEPPT PENSION TRUST 390,000 390,000 .00 .00 390,000.00 .0% 942 SA TRUST FUND
4J OTHER SOURCES 61,664 61,664 .00 .00 61,664.00 .0%
4N DEBT SERVICE REMIB 3,862,262 3,862,262 .00 .00 3,862,262.00 .0% TOTAL SA TRUST FUND 3,923,926 3,923,926 .00 .00 3,923,926.00 .0% GRAND TOTAL 84,016,419 84,016,419 1,327,902.38 1,327,902.38 82,688,516.34 1.6% ** END OF REPORT - Generated by Kristina Alfaro **
Attachment 4
ITEM NO. 8.
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
MONTHLY FINANCIAL REPORT – JULY 2026
ATTACHMENT 5
The following is the July 2026 Monthly Financial Report. It has been prepared to inform the Town Council, Town Leadership, and the public of the Town’s fiscal status. This report provides companion analysis to monthly revenue and expenditure reports.
Background
On June 2, 2026, the Town Council adopted the Fiscal Year (FY) 2026-27 Final Budget, an $84,944,559 spending plan funded by $84,016,419, resulting in the use of fund balance of $928,140. The General Fund expenditure appropriation is recommended at $67,468,582 with estimated revenues of $64,815,087, resulting in an estimated use of unassigned fund balance $2,653,495 due primarily to the transfer out of $3.0 million of unassigned fund balance to a new Capital Fund for Future Community Use. As of July, no budget revisions had been approved by the Town Council, and to date, not all prior year budget carryovers have been completed.
Revenue and Expenditures Trend Analysis by Fund Type
Overall revenues across all funds as of July are 1.6% collected and on trend for the same period in prior years. Prior years ranged from 0.9% to 5.6% collected as a percent of the revised budget for July.
Fund Fund Type FY 2023-24
% COLL
FY 2024-25
% COLL
FY 2025-26
% COLL
STRAIGHT
LINE
FY 2026-27
% COLL
TREND
111/
121/
732
GENERAL FUND 5.3% 3.1% 1.6% 8.3% 1.4%
2* SPECIAL REVENUE
FUNDS 1.0% -2.1% -1.4% 8.3% 2.7%
4* CAPITAL FUNDS 9.4% -0.7% -1.7% 8.3% 5.4%
6* INTERNAL SERVICE
FUNDS 6.2% 0.9% 1.4% 8.3% 1.0%
9* TRUST FUND 0.0% 0.0% 0.0% 8.3% 0.0%
TOTAL REVENUE BY FUND 5.6% 2.4% 0.9% 8.3% 1.6%
General Fund revenues collected are 1.4% and trending below the same point in the prior three years. Prior years ranged from 1.6% to 5.3% collected as a percent of the revised budget for July. This is primarily due to payment timing and the year-end accrual process, where a negative revenue is posted to account for an anticipated revenue, then reversed when the actual revenue for the month is received.
Special Revenue Funds revenues collected are 2.7% and trending above the same point in the prior three years. Prior years ranged from -2.1% to 1.0% collected as a percent of the revised budget for July. This is primarily due to receivables that were set up for the 222 Urban Runoff
ITEM NO. 8.
2 Fund in the prior two fiscal years that were not set up in the current fiscal year. This resulted in negative revenues in the prior two years.
Expenditures by Fund Type Trend Analysis
Expenditures and encumbrances are 15.1% as of July and on trend with the same period in the prior three years, which have ranged from 15.0% to 30.7% expended as a percent of the revised budget for July.
Fund FUND TYPE
FY2023-24 FY2024-25 FY2025-26
STRAIGHT
LINE
FY2026-27
ON
TREND %
EXP
%
EXP
%
EXP
%
EXP
111/
121/732 GENERAL FUND 9.3% 10.7% 10.4% 8.3% 8.0%
2* SPECIAL REVENUE
FUNDS 13.5% 8.3% 7.2% 8.3% 12.1%
4* CAPITAL FUNDS 79.4% 147.0% 15.9% 8.3% 38.8%
6*
INTERNAL SERVICE
FUNDS 18.0% 26.8% 31.5% 8.3% 46.5%
9* TRUST FUND 43.9% 44.8% 45.7% 8.3% 45.0%
TOTAL EXPENDITURE BY FUND TYPE 21.5% 30.7% 15.0% 8.3% 15.1% General Funds actual expenditures and encumbrances are 8.0% and trending below the prior years, which have ranged from 9.3% to 10.7% expended as a percent of the revised budget for July. This is due to a variety of variances across multiple expense categories. See the General Fund by category for details.
Internal Service Funds actual expenditures and encumbered funds are 46.5% and trending above the same point in the prior three years. Prior years ranged from 18.0% to 31.5% expended as a percent of the revised budget for July. Expenditures are trending above the three-year July average, primarily due to changes in insurance costs, expenditure timing, encumbrances, and fluctuations in budgeted expenditures. Some variances are also related to prior-year vehicle encumbrances and two months of utility costs being recorded in July.
General Fund Revenue by Category Trend Analysis
Overall General Fund revenues across all categories as of July are 1.4% collected and are below the same period in prior years. Prior years ranged from 1.6% to 5.3% collected as a percent of the revised budget for July.
CATEGORY FY 2023-24
% COLL
FY 2024-25
% COLL
FY 2025-26
% COLL
STRAIGHT
LINE
FY 2026-27
% COLL TREND
PROPERTY TAX 0.0% -0.5% -0.5% 8.3% 0.0%
SALES & USE TAX -9.3% -8.4% -9.2% 8.3% 0.0%
MEASURE G -9.8% -9.1% -9.7% 8.3% 0.0%
ITEM NO. 8.
3 CATEGORY FY 2023-24
% COLL
FY 2024-25
% COLL
FY 2025-26
% COLL
STRAIGHT
LINE
FY 2026-27
% COLL TREND
TRANSIENT
OCCUPANCY -5.8% -6.7% -13.9% 8.3% 3.9%
BUSINESS LIC & OTHER 0.0% 0.0% 0.0% 8.3% 0.0%
FRANCHISE FEES -5.9% -11.9% -10.5% 8.3% 0.0%
FINES & FORFEITURES 0.0% 0.0% 0.0% 8.3% 0.0%
LICENSES & PERMITS 13.8% 10.3% 10.9% 8.3% 3.5%
TOWN SERVICES 7.4% 8.1% 14.4% 8.3% 4.1%
OTHER SOURCES 77.9% -11.8% -59.2% 8.3% 8.2%
INTERGOVERNMENTAL -27.3% 17.4% 7.0% 8.3% -6.4%
PASS THRU 95.6% 113.4% 91.4% 8.3% 5.2%
TRANSFERS IN 0.0% 0.0% 0.0% 8.3% 0.0%
DEBT SERVICE REMIB 0.0% 0.0% 0.0% 8.3% 0.0%
GENERAL FUND %
COLLECTED BY
CATEGORY
5.3% 3.1% 1.6% 8.3% 1.4%
Property Tax actual revenues collected are 0.0%. This is higher than the negative percentages reported in the prior three years. This is primarily due to a receivable for funds yet to be collected that has not been set up this fiscal year and the timing of July revenue postings.
Sales & Use Tax actual revenues collected are 0.0% and trending above the same point in the prior three years. Prior years ranged from -9.3% to -8.4% collected as a percent of the revised budget for July. This is primarily due to a receivable for funds yet to be collected that has not been set up this fiscal year and the timing of July revenue postings.
Measure G actual revenues collected are 0.0% and trending above the same point in the prior three years. Prior years ranged from -9.8% to -9.1% collected as a percent of the revised budget for July. This is primarily due to a receivable for funds yet to be collected that has not been set up this fiscal year and the timing of July revenue postings.
Transient Occupancy Tax actual revenues collected are 3.9% and are trending above the same point in the prior three years. Prior years ranged from -13.9% to -5.8% collected as a percent of the revised budget for July. This is primarily due to a receivable for funds yet to be collected that has not been set up this fiscal year and the timing of July revenue postings.
Franchise Fees actual revenues collected are 0.0% and trending above the same point in the prior three years. Prior years ranged from -11.9% to -5.9% collected as a percent of the revised budget for July. This is primarily due to a receivable for funds yet to be collected that has not been set up this fiscal year and the timing of July revenue postings.
ITEM NO. 8.
4 Licenses and Permits actual revenues collected are 3.5% and trending below the same point in the prior three years. Prior years ranged from 10.3% to 13.8% collected as a percent of the revised budget for July. This is primarily due to an increase in budgeted revenue in comparison to other years and due to a delay in accounting for revenues received in the Town’s planning software to the ERP.
Town Services actual revenues collected are 4.1% and trending below the same point in the prior three years. Prior years ranged from 7.4% to 14.4% collected as a percent of the revised budget for July. This is due to a delay in accounting for revenues received in the Town’s planning software to the ERP. This trend is expected to improve with August reporting. In addition, a receivable for payment related to contracted police services was not set up in the current year.
Pass-Thru actual revenues collected are 5.2% and trending below the same point in the prior three years. Prior years ranged from 91.4% to 113.4%, collected as a percent of the revised budget for July. This is due to a delay in accounting for revenues received in the Town’s planning software to the ERP. This trend is expected to improve with August reporting.
General Fund by Expense Category Analysis
Actual expenditures and encumbered funds are 8.0% and trending below for the same point in the prior years. Prior years ranged from 9.3% to 10.7% expended as a percent of the revised budget for July.
CATEGORY FY2023-24
% Exp
FY2024-25
% EXP
FY2025-26
% EXP
STRAIGHT
LINE
FY2026-27
% EXP ON TREND
SALARIES 5.9% 5.7% 5.3% 8.3% 4.8%
OVERTIME 13.2% 9.9% 11.7% 8.3% 4.5%
PERS 6.3% 6.6% 6.2% 8.3% 6.3%
MEDICAL BENEFITS 6.9% 6.9% 6.8% 8.3% 7.2%
OTHER BENEFITS 6.4% 6.7% 6.3% 8.3% 6.3%
RETIREE MEDICAL 14.9% 16.6% 14.9% 8.3% 8.5%
MATERIALS &
SUPPLIES
4.3% 13.2% 9.6% 8.3% 13.1%
CONTRACTS 17.7% 30.7% 20.2% 8.3% 33.6%
UTILITIES 22.6% 20.4% 20.3% 8.3% 23.5%
GRANTS AND AWARDS 0.3% 0.1% 11.8% 8.3% 5.3%
PASS THRU 48.0% 54.3% 67.9% 8.3% 5.8%
MISCELLANEOUS 0.0% 0.0% 0.0% 8.3% 0.0%
INT SERVICE CHARGES 1.0% 2.4% 2.7% 8.3% 2.7%
DEBT SERVICE 0.0% 0.0% 0.0% 8.3% 0.0%
CAPITAL PROJECTS 0.0% 0.0% 0.0% 8.3% 0.0%
TRANSFERS OUT 0.0% 0.0% 0.0% 8.3% 0.0%
OPEB 0.0% 0.0% 0.0% 8.3% 0.0%
ITEM NO. 8.
5 CATEGORY FY2023-24
% Exp
FY2024-25
% EXP
FY2025-26
% EXP
STRAIGHT
LINE
FY2026-27
% EXP ON TREND
GENERAL FUND
TOTALS BY CATEGORY
9.3% 10.7% 10.4% 8.3% 8.0%
Salaries actual expenditures and encumbered funds are 4.8% and trending below the same point in the prior three years. Prior years ranged from 5.3% to 5.9% expended as a percent of the revised budget for July. See the “All Fund Vacancy Savings by Pay Period Analysis” section of the report for more details.
Overtime actual expenditures and encumbered funds are 4.5% and trending below the same point in prior years. Prior years ranged from 9.9% to 13.2% expended as a percent of the revised budget for July. See the “All Fund Vacancy Savings by Pay Period Analysis” section of the report for more details.
Medical Benefits actual expenditures and encumbered funds are 7.2% and trending above the same point in the prior three years. Prior years ranged from 6.8% to 6.9% expended as a percent of the revised budget for July. See the “All Fund Vacancy Savings by Pay Period Analysis” section of the report for more details.
Retiree Medical actual expenditures and encumbered funds are 8.5% and trending below the same point in the prior three years. Prior years ranged from 14.9% to 16.6% expended as a percent of the revised budget for July. This is primarily due to reduced pay periods for the current year to 1.29. In comparison, other years have contained two or more pay periods in July.
Contracts actual expenditures and encumbered funds are 33.6% and trending above the same point in the prior three years. Prior years ranged from 17.7% to 30.7% expended as a percent of the revised budget for July. This is primarily due to several software contracts with annual subscriptions that were paid in July.
Utilities actual expenditures and encumbered funds are 23.5% and trending above the same point in the prior three years. Prior years ranged from 20.3% to 22.6% expended as a percent of the revised budget for July. This is primarily due to water, light, and signal expenses being charged to this budget that had not been in prior years.
Pass-thru actual expenditures and encumbered funds are 5.8% and trending below the same point in the prior three years. Prior years ranged from 48.0% to 67.9% expended as a percent of the revised budget for July. This is primarily due to a reduction in plan check revenues caused by a delay in posting revenues received from the Town’s planning software to the ERP. This trend is expected to improve with August reporting.
All Fund Vacancy Savings by Pay Period Analysis
The adopted budget includes a 4.6% vacancy-savings assumption totaling $2.0 million. This
ITEM NO. 8.
6 amount was calculated by applying 4.6% to the pre-vacancy salary-and-benefit base of $44,545,652. The revised salary-and-benefit budget shown below reflects the resulting vacancysavings reduction The payroll percentage column is derived by taking the 1 pay period in July plus 29% of the last payroll in June that was paid in July, based on the total days in July in that pay period. Adding these two together and dividing by the total pay periods in a year, or 26, results in 1.29 pay periods having occurred as of July. Based on the table below, which includes the 4.6% vacancy savings factor and the percent of payroll percentage column. The pay-period analysis is appropriate for salaries and overtime categories. The remaining benefit categories are processed monthly, or 1/12, resulting in an 8.3% and are a more accurate benchmark percentage for analysis of these categories.
CATEGORY REVISED
BUDGET
YTD
EXPENDITURES
AVAILABLE
BUDGET
PCT
USED
% of Pay
Periods/
Straightline
5A SALARIES $24,176,333 $1,170,569 $23,005,764 4.8% 5.0% 5B OVERTIME $ 1,457,000 $65,827 $ 1,391,173 4.5% 5.0%
5C PERS $10,800,788 $680,121 $10,120,668 6.3% 8.3%
5D MEDICAL BENEFITS $ 3,371,803 $242,973 $ 3,128,830 7.2% 8.3% 5E OTHER BENEFITS $ 2,922,678 $182,824 $ 2,739,854 6.3% 8.3% Total Salary and Benefits $ 42,728,602 $ 2,342,314 $ 40,386,289 5.5% 5.0% Salary and benefit expenditures are 5.5% of the revised budget as of July. Salaries and overtime are slightly below the 5.0% payroll-period benchmark, while PERS, Medical Benefits, and Other Benefits are below the 8.3% monthly straight-line benchmark. A dedicated vacancy report is not yet available from the ERP; once operational, staff will use that report to provide a more direct analysis of vacancy savings.
Summary
Monthly reports as of July 2026 for both revenue and expenditure show the Town is generally tracking within or below prior-year trends. General Fund expenditures are at 8.0% of the revised budget, including encumbrances, compared with the 8.3% straight-line benchmark.
Salary and overtime expenditures are slightly below the payroll-period benchmark, while benefit categories remain below the 8.3% monthly benchmark.
ITEM NO. 8.
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov
TOWN OF LOS GATOS
MONTHLY FINANCIAL REPORT – JULY 2026
IN QUARTERLY FORMAT
ATTACHMENT 6
The following is the July 2026 Monthly Financial Report. It has been prepared to inform the Town Council, Town Leadership, and the public of the Town’s fiscal status. This report provides companion analysis to monthly revenue and expenditure reports.
Background
On June 2, 2026, the Town Council adopted the Fiscal Year (FY) 2026-27 Final Budget, an $84,944,559 spending plan funded by $84,016,419, resulting in the use of fund balance of $928,140. The General Fund expenditure appropriation is recommended at $67,468,582 with estimated revenues of $64,815,087, resulting in an estimated use of unassigned fund balance $2,653,495 due primarily to the transfer out of $3.0 million of unassigned fund balance to a new Capital Fund for Future Community Use. As of July, no budget revisions had been approved by the Town Council, and to date, not all prior year budget carryovers have been completed.
The July 2026 monthly financial reports provide expenditure and revenue information with the following breakdowns:
1. By Fund
Shows total expenditures and revenues for each Town fund, allowing for high-level review of fiscal performance across all funding sources.
2. By Fund and Category
Provides expenditures and revenues within each fund divided into major categories such as personnel, operating, capital, charges for services, taxes, and other revenue types.
3. By Fund and Department
Displays departmental expenditures by the specific fund supporting each program or operational area.
4. By Fund, Department and Expense/Revenue Category
Offers a detailed breakdown that ties each department’s budget activity to the relevant fund and categorizes expenditures and revenues for more granular analysis.
Analysis Overview
These reports support ongoing monitoring of budget-to-actual performance, highlight variances that may require adjustment, and help ensure compliance with adopted financial policies. Staff approached the analysis in two ways. First, a straight-line analysis assumes expenditures and revenues are expended and collected evenly throughout the year, with each month representing 1/12, or 8.3%, of the annual budget. Straight line analysis was shown as part of trend analysis tables; however, staff only show this for illustrative purposes. As you will see, the
ITEM NO. 8.
2 trend analysis provides far more meaningful analysis, and we would expect this trend to continue throughout the fiscal year.
In trend analysis, staff have reviewed the July reports for revenue/expenditures of three prior Julys for fiscal years (FY) 2023-24 to 2025-26 against actual revenues/expenditures and collections in FY 2026-27 to determine if we are on trend with prior years.
Analysis is done by Fund first, followed by in depth analysis for the General Fund only that includes, by category, by department analysis. Staff focused on irregular patterns and on items trending above or below prior year trends for both revenues and expenditures for all analysis completed in this report.
Staff completed a vacancy savings analysis across all funds to determine how the budget is tracking against projected salary savings. This is done across all funds because salary and benefits are charged across multiple funds, with the largest majority being in the General Fund.
When looking at the % Collected and % Expended columns across various reports, the following formulas are used: revenue YTD Actuals/Revised Budget. For expenditures, the formula is (YTD Actuals + Encumbrances)/Revised Budget.
MTD refers to Month to Date, and encumbrances represent money that has been set aside for an agreement to purchase goods or services. As actual expenditures are charged against the encumbrance, it should decrease, and actual expenditures should increase. For this reason, in many areas where % Expended is trending greatly above the trend or straight line, staff will note the reason, but this is not a cause for concern. We expect both analyses to normalize as the year progresses. However, should a budget be over 100% expended, staff will note the reason, as this may indicate an issue that may require an adjustment.
The months of July and June, as they are the first and last months of the fiscal year, have some anomalies in reporting due to closing out the prior year and starting the new year. These include accruals and timing of both revenues and expenditures. In addition, some revenue and expense items might not be posted yet due mainly to the timing of the item or other delays.
Although staff work diligently to clear the bulk of the anomalies, some remain and are discussed further below. Most anomalies should resolve by the August reports.
The Town operates on a modified accrual basis. Under this basis, revenues and expenditures are generally recognized when measurable and incurred, with year-end accruals used to assign transactions to the appropriate fiscal year.
You may also note negative encumbrances as part of the July reports as well; this, too, is due to this period in the year where an encumbrance has been carried forward as negative from the prior year and will resolve in the August report.
ITEM NO. 8.
3 In anticipation of July revenue, receivables are set up and may result in negative revenue until the payment is received. The accruals are then backed out, and the negative revenue should resolve in the August reports.
Revenues by Fund Trend Analysis
Overall revenues across all funds as of July are 1.6% collected, and on trend for the same period in prior years. Prior years ranged from 0.9% to 5.6% collected as a percent of the revised budget for July.
Fund Fund Name FY 2023-24
% COLL
FY 2024-25
% COLL
FY 2025-26
% COLL
STRAIGHT
LINE
FY 2026-27
% COLL TREND
111 GENERAL FUND 5.7% 3.4% 1.9% 8.3% 1.4%
121 MEASURE G FUND -9.8% -9.1% -9.7% 8.3% 0.0%
732 PERS CEPPT PENSION
TRUST 0.0% 0.0% 0.0% 8.3% 0.0%
Total General Fund 5.3% 3.1% 1.6% 8.3% 1.4%
222 URBAN RUNOFF FUND 0.0% -10.4% -12.5% 8.3% 0.0%
251 LOS GATOS THEATRE 8.1% 17.1% 12.4% 8.3% 12.5%
411 CAPITAL PROJECTS
FUND 29.0% 0.7% 1.5% 8.3% 0.7%
413 LONG-TERM
COMMUNITY BENEFIT1
0.0% 0.0% 0.0% 8.3% 0.0%
421 GRANT FUNDED
PROJECTS -13.9% 0.0% -2.8% 8.3% 928.9%
461 STORM BASIN 1 14.3% 3.3% 0.0% 8.3% 0.0%
462 STORM BASIN 2 5.1% 3.0% 18.8% 8.3% 0.0%
463 STORM BASIN 3 0.0% 0.0% -5.1% 8.3% 0.0%
472 UTILITY UNDERGROUND
TAX FUND 7.6% 1.4% 4.2% 8.3% 0.0%
481 GAS TAX FUND -3.6% -4.5% -4.6% 8.3% 0.0%
611 ABAG TOWN LIABILITY
FUND 0.6% 0.0% 0.0% 8.3% 0.0%
612 WORKERS
COMPENSATION FUND 6.8% 1.1% 3.4% 8.3% 0.5%
621 INFORMATION
TECHNOLOGY 1.5% 1.3% 1.4% 8.3% 0.7%
631 EQUIPMENT
REPLACEMENT FUND -1.4% 0.0% 0.0% 8.3% 2.2%
633 FACILITIES
MAINTENANCE FUND 18.2% 1.8% 1.8% 8.3% 2.2%
942 SA TRUST FUND 0.0% 0.0% 0.0% 8.3% 0.0%
TOTAL REVENUE BY FUND 5.6% 2.4% 0.9% 8.3% 1.6%
1 Transfers in/out are processed annually at year-end. You will see the $3 million transfer in the June monthly reports.
ITEM NO. 8.
4 111/121/732 General Fund revenues collected are 1.4% and trending below the same point in the prior three years. Prior years ranged from 1.6% to 5.3% collected as a percent of the revised budget for July. This is primarily due to payment timing and the year-end accrual process, where negative revenue is posted to account for anticipated revenue timing, then reversed when actual revenue for the month is received.
421 Grant Funded Projects actual revenues collected are 928.9% and trending above the same point in the prior three years. Prior years ranged from -13.9% to 0.0% collected as a percent of the revised budget for July. This is primarily due to the receipt of the MTC One Bay Area Grant (OBAG).
462 Storm Basin 2 actual revenues collected are 0.0% and trending below the same point in the prior three years. Prior years ranged from 3.0% to 18.8% collected as a percent of the revised budget for July. This is primarily due to prior years having a few storm drain fees received in July.
472 Utility Underground Tax Fund actual revenues collected are 0.0% and trending below the same point in the prior three years. Prior years ranged from 1.4% to 7.6% collected as a percent of the revised budget for July. This is primarily due to prior years having received construction taxes in July.
481 Gas Tax Fund actual revenues collected are 0.0% and trending above the same point in the prior three years. Prior years ranged from -4.6% to -3.6% collected as a percent of the revised budget for July. This is primarily due to the timing of accruing the July SB1 RMRA payment. 612 Workers’ Compensation Fund actual revenues collected are 0.5% and trending below the same point in the prior three years. Prior years ranged from 1.1% to 6.8% collected as a percent of the revised budget for July. This is primarily due to reimbursement received in prior years that have not materialized in the current fiscal year.
621 Information Technology Fund actual revenues collected are 0.7% and trending below the same point in the prior three years. Prior years ranged from 1.3% to 1.5% collected as a percent of the revised budget for July. This is primarily due to the timing of payrolls, with prior years having at least two full payrolls in July and the current year having only 1.29 pay periods for the same period.
631 Equipment Replacement Fund actual revenues collected are 2.2% and trending above the same point in the prior three years. Prior years ranged from -1.4% to 0.0% collected as a percent of the revised budget for July. This is primarily due to the sale of a fixed asset.
Expenditures by Fund Trend Analysis
ITEM NO. 8.
5 Expenditures and encumbrances are 15.1% as of July and on trend with the same period in the prior three years, which have ranged from 15.0% to 30.7% expended as a percent of the revised budget for July.
Fund Fund Name
FY2023-24 FY2024-25 FY2025-26
STRAIGHT
LINE
FY2026-27
ON
TREND %
EXP
%
EXP
%
EXP
%
EXP
111 GENERAL FUND 9.6% 10.9% 10.6% 8.3% 8.2%
121 MEASURE G FUND -0.8% -0.6% -0.8% 8.3% 0.0%
732 PERS CEPPT PENSION
TRUST 0.0% 0.0% 0.0% 8.3% 0.0%
TOTAL GENERAL FUND 9.3% 10.7% 10.4% 8.3% 8.0%
222 URBAN RUNOFF FUND 8.0% 5.1% 3.6% 8.3% 7.7%
231 BLACKWELL DISTRICT 50.6% 36.3% 36.3% 8.3% 31.5%
232 KENNEDY MEADOWS
DISTRICT 80.3% 61.5% 61.5% 8.3% 57.6%
233 GEMINI COURT
DISTRICT 55.6% 31.7% 31.7% 8.3% 33.9%
234 SANTA ROSA HEIGHTS
DISTRICT 92.2% 82.2% 82.2% 8.3% 82.9%
235 VASONA HEIGHTS
DISTRICT 56.4% 49.9% 49.9% 8.3% 50.2%
236 HILLBROOK DISTRICT 36.6% 25.7% 25.7% 8.3% 30.1%
251 LOS GATOS THEATRE 0.0% 3.5% 0.0% 8.3% 12.3%
261 LIBRARY TRUST
DONATIONS 4.1% 3.6% 4.4% 8.3% 4.8%
411 CAPITAL PROJECTS
FUND 82.2% 128.5% 12.1% 8.3% 2.0%
421 GRANT FUNDED
PROJECTS 77.9% 208.4% 20.9% 8.3% 0.0%
462 STORM BASIN 2 0.0% 100.0% 4.2% 8.3% 175.2%
471 TRAFFIC MITIGATION
FUND 94.7% 153.5% 0.0% 8.3% 0.0%
481 GAS TAX FUND 82.6% 90.8% 28.0% 8.3% 108.4%
611 ABAG TOWN LIABILITY
FUND 0.0% 0.0% 83.4% 8.3% 88.8%
612 WORKERS
COMPENSATION FUND 4.0% 30.0% 28.1% 8.3% 36.3%
621 INFO TECH 56.7% 58.3% 25.9% 8.3% 48.2%
ITEM NO. 8.
6 Fund Fund Name
FY2023-24 FY2024-25 FY2025-26
STRAIGHT
LINE
FY2026-27
ON
TREND %
EXP
%
EXP
%
EXP
%
EXP
631 EQUIPMENT
REPLACEMENT FUND 12.1% 30.2% 7.6% 8.3% 0.0%
633 FACILITIES
MAINTENANCE FUND 27.2% 23.3% 16.9% 8.3% 30.4%
942 SA TRUST FUND 43.9% 44.8% 45.7% 8.3% 45.0%
TOTAL 21.5% 30.7% 15.0% 8.3% 15.1%
111/121/732 General Fund actual expenditures and encumbrances are 8.0% and trending below the prior three years, which have ranged from 9.3% to 10.7% expended as a percent of the revised budget for July. This is due to variances across multiple expense categories. See the General Fund by category section for further information. 232 Kennedy Meadows District actual expenditures and encumbered funds are 57.6% and are trending below the same point in the prior three years. Prior years ranged from 61.5% to 80.3% expended as a percent of the revised budget for July. This is primarily due to an encumbrance for median and mowing.
251 Los Gatos Theatre actual expenditures and encumbered funds are 12.3% and are trending above the same point in the prior three years. Prior years ranged from 0.0% to 3.5% expended as a percent of the revised budget for July. This is primarily due to an encumbrance for elevator services.
261 Library Trust actual expenditures and encumbered funds are 4.8% and trending above the same point in the prior three years. Prior years ranged from 3.6% to 4.1% expended as a percent of the revised budget for July. Although this is trending slightly higher, prior-year actuals are in line with the prior year; however, this year is budgeted lower than prior years.
This causes the larger percentage.
411 Capital Projects Fund actual expenditures and encumbered funds are 2.0% and trending below the same point in the prior three years. Prior years ranged from 12.1% to 128.5% expended as a percent of the revised budget for July. This is primarily due to one-time COVID19 funds expended in this fund in FY 2023-24. 421 Grant Funded Projects actual expenditures and encumbered funds are 0.0% and trending below the same point in the prior three years. Prior years ranged from 20.9% to 208.4% expended as a percent of the revised budget for July. This is primarily due to large encumbrances in prior years.
462 Storm Basin 2 actual expenditures and encumbered funds are 175.2% and trending above the same point in the prior three years. Prior years ranged from 0.0% to 100.0% expended as a
ITEM NO. 8.
7 percent of the revised budget for July. This is primarily due to actual charges that were not processed against the existing purchase order, causing this fund to appear over budget. Staff will correct this reporting in August.
481 Gas Tax Fund actual expenditures and encumbered funds are 108.4% and trending above the same point in the prior three years. Prior years ranged from 28.0% to 90.8% expended as a percent of the revised budget for July. This is primarily due to actual charges that were not processed against the existing purchase order, causing this fund to appear over budget. Staff will correct this reporting in August.
611 ABAG Town Liability Fund actual expenditures and encumbered funds are 88.8% and trending above the same point in the prior three years. Prior years ranged from 0% to 83.4% expended as a percent of the revised budget for July. This is primarily due to a change in insurance providers, resulting in a lower budget number compared to expended funds. 612 Workers’ Compensation Fund actual expenditures and encumbered funds are 36.3% and trending above the same point in the prior three years. Prior years ranged from 4.0% to 30.0% expended as a percent of the revised budget for July. This is primarily due to a combination of encumbered funds and fluctuations in budgeted expenditures. 631 Equipment Replacement Fund actual expenditures and encumbered funds are 0.0% and are trending below the same point in the prior three years. Prior years ranged from 7.6% to 30.2% expended as a percent of the revised budget for July. This is primarily due to encumbrances in prior years for patrol vehicles that are not in the current year. 633 Facilities Maintenance Fund actual expenditures and encumbered funds are 30.4% and trending above the same point in the prior three years. Prior years ranged from 16.9% to 27.2% expended as a percent of the revised budget for July. This is primarily due to increased utilities costs driven by two months of payments posted this July.
General Fund2 Department Revenue Trend Analysis
Overall General Fund revenues across all departments as of July are 1.4% collected, and trending below for the same period in prior years. Prior years ranged from 1.6% to 5.3% collected as a percent of the revised budget for July.
Department Name FY 2023-24
% COLL
FY 2024-25
% COLL
FY 2025-26
% COLL
STRAIGHT
LINE
FY 2026-27
% COLL TREND
Townwide -2.7% -2.5% -3.0% 8.3% 0.2%
Town Attorney 0.0% 0.0% 0.0% 8.3% 0.0%
Administrative Services 44.5% -5.9% -35.9% 8.3% 4.2%
Community Development 14.6% 26.2% 42.1% 8.3% 2.7%
Police 2.6% 4.7% 9.5% 8.3% 1.1%
2 The General Fund include Funds 111, 121 and 732.
ITEM NO. 8.
8 Department Name FY 2023-24
% COLL
FY 2024-25
% COLL
FY 2025-26
% COLL
STRAIGHT
LINE
FY 2026-27
% COLL TREND
Parks & Public Works 67.8% 66.5% 48.1% 8.3% 10.7%
Library -1.8% 87.7% 51.7% 8.3% -2.5%
General Fund %
Collected by Department
5.3% 3.1% 1.6% 8.3% 1.4%
Townwide actual revenues collected are 0.2% and trending above the same point in the prior three years. Prior years ranged from -3.0% to -2.5% collected as a percent of the revised budget for July. This is primarily due to new year’s accruals and timing of payments for Sales Tax, Transient Occupancy Tax, and Franchise Fees. This trend is expected to improve with August reporting.
Administrative Services: This department is on trend but, prior year collections have varied significantly. This is due to the mark-to-market adjustments made in prior years that caused large negative and positive swings. In addition, in FY 2023-24 COVID-19 pass-through funds were received in this department.
Community Development: actual revenues collected are 2.7% and trending below the same point in the prior three years. Prior years have ranged from 14.6% to 42.1% collected as a percent of the revised budget for July. This is primarily due to a delay in accounting for revenues received in the Town’s planning software to the ERP. This trend is expected to improve with August reporting.
Parks and Public Works: actual revenues collected are 10.7% and trending below the same point in the prior three years. Prior years ranged from 48.1% to 67.8%. This is due to a delay in posting deferred pass thru revenues from the prior year.
Library actual revenues collected are -2.5% and trending below the same point in the prior three years. Prior years ranged from -1.8% to 87.7% collected as a percent of the revised budget for July. This is primarily due to larger grant funds received in prior years.
General Fund Revenue by Category Trend Analysis
Overall General Fund revenues across all categories as of July are 1.4% collected and are below the same period in prior years. Prior years ranged from 1.6% to 5.3% collected as a percent of the revised budget for July.
Department Name FY 2023-24
% COLL
FY 2024-25
% COLL
FY 2025-26
% COLL
STRAIGHT
LINE
FY 2026-27
% COLL TREND
PROPERTY TAX 0.0% -0.5% -0.5% 8.3% 0.0%
SALES & USE TAX -9.3% -8.4% -9.2% 8.3% 0.0%
MEASURE G -9.8% -9.1% -9.7% 8.3% 0.0%
ITEM NO. 8.
9 Department Name FY 2023-24
% COLL
FY 2024-25
% COLL
FY 2025-26
% COLL
STRAIGHT
LINE
FY 2026-27
% COLL TREND
TRANSIENT
OCCUPANCY -5.8% -6.7% -13.9% 8.3% 3.9%
BUSINESS LIC & OTHER 0.0% 0.0% 0.0% 8.3% 0.0%
FRANCHISE FEES -5.9% -11.9% -10.5% 8.3% 0.0%
FINES & FORFEITURES 0.0% 0.0% 0.0% 8.3% 0.0%
LICENSES & PERMITS 13.8% 10.3% 10.9% 8.3% 3.5%
TOWN SERVICES 7.4% 8.1% 14.4% 8.3% 4.1%
OTHER SOURCES 77.9% -11.8% -59.2% 8.3% 8.2%
INTERGOVERNMENTAL -27.3% 17.4% 7.0% 8.3% -6.4%
PASS THRU 95.6% 113.4% 91.4% 8.3% 5.2%
TRANSFERS IN 0.0% 0.0% 0.0% 8.3% 0.0%
DEBT SERVICE REMIB 0.0% 0.0% 0.0% 8.3% 0.0%
GENERAL FUND %
COLLECTED BY
CATEGORY
5.3% 3.1% 1.6% 8.3% 1.4%
Property Tax actual revenues collected are 0.0%. This is higher than the negative percentages reported in the prior three years, primarily due to the timing of July revenue postings.
Sales & Use Tax actual revenues collected are 0.0% and trending above the same point in the prior three years. Prior years ranged from -9.3% to -8.4% collected as a percent of the revised budget for July. This is primarily due to the delay in posting July revenue.
Measure G actual revenues collected are 0.0% and trending above the same point in the prior three years. Prior years ranged from -9.8% to -9.1% collected as a percent of the revised budget for July. This is primarily due to a delay in posting July revenue.
Transient Occupancy Tax actual revenues collected are 3.9% and trending above the same point in the prior three years. Prior years ranged from -13.9% to -5.8% collected as a percent of the revised budget for July. This is primarily due to a receivable for funds yet to be received and the delay in posting July revenue.
Franchise Fees actual revenues collected are 0.0% and trending above the same point in the prior three years. Prior years ranged from -11.9% to -5.9% collected as a percent of the revised budget for July. This is primarily due to a receivable for funds yet to be collected that has not been set up this fiscal year.
Licenses and Permits’ actual revenues collected are 3.5% and trending below the same point in the prior three years. Prior years ranged from 10.3% to 13.8% collected as a percent of the revised budget for July. This is primarily due to an increase in budgeted revenue in comparison to other years and the large payment received in the previous year.
ITEM NO. 8.
10 Town Services actual revenues collected are 4.1% and trending below the same point in the prior three years. Prior years ranged from 7.4% to 14.4% collected as a percent of the revised budget for July. This is due to a delay in accounting for revenues received in the Town’s planning software to the ERP. This trend is expected to improve with August reporting. In addition, a receivable for payment related to contracted police services was not set up in the current year.
Pass-Through actual revenues collected are 5.2% and trending below the same point in the prior three years. Prior years ranged from 91.4% to 113.4%, collected as a percent of the revised budget for July. This is due to a delay in accounting for revenues received in the Town’s planning software to the ERP. This trend is expected to improve with August reporting.
General Fund Department Expense Trend Analysis
Actual expenditures and encumbered funds are 8.0% or below at the same point in the prior three years. Prior years ranged from 9.3% to 10.7% expended as a percent of the revised budget for July.
Department
FY2023-24 FY2024-25 FY2025-26
STRAIGHT
LINE
FY2026-27
%
EXP
%
EXP
%
EXP
%
EXP
Trend
Town Council 7.4% 6.3% 6.4% 8.3% 5.5%
Townwide 11.5% 8.2% 9.0% 8.3% 6.2%
Town Attorney 5.5% 5.6% 12.9% 8.3% 36.0%
Administrative Services 5.0% 5.9% 4.5% 8.3% 5.2%
Community Development 9.9% 17.7% 21.2% 8.3% 6.3%
Police 7.4% 7.0% 6.1% 8.3% 5.0%
Parks & Public Works 15.2% 21.6% 20.1% 8.3% 16.4%
Library 4.9% 6.2% 6.1% 8.3% 5.5%
GENERAL FUND %
EXPENSED BY DEPARTMENT
9.3% 10.7% 10.4% 8.3% 8.0%
Town Council actual expenditures and encumbered funds are 5.5% and trending below the same point in the prior three years. Prior years ranged from 6.3% to 7.4% expended as a percent of the revised budget for July. This is primarily due to reduced salary costs because there are only 1.29 pay periods in July. In comparison, other years have contained two or more pay periods in July.
Townwide actual expenditures and encumbered funds are 6.2% and trending below the same point in the prior three years. Prior years ranged from 8.2% to 11.5% expended as a percent of the revised budget for July. This is primarily due to a reduction in retiree medical expenses due to reduced pay periods for the current year to 1.29. In other years have been two or more pay periods in July.
ITEM NO. 8.
11 Town Attorney actual expenditures and encumbered funds are 36.0% and trending above the same point in the prior three years. Prior years ranged from 5.3% to 12.9% expended as a percent of the revised budget for July. This is primarily due to a large encumbrance in the current fiscal year.
Community Development actual expenditures and encumbered funds are 6.3% and are trending above the same point in the prior three years. Prior years ranged from 9.9% to 21.1% expended as a percent of the revised budget for July. This is primarily due to a prior years having a large encumbrance in pass thru revenues that has yet to be encumbered in the current year.
Police actual expenditures and encumbered funds are 5.0% and trending below the same point in the prior three years. Prior years ranged from 5.6% to 7.0% expended as a percent of the revised budget for July. This is primarily due to a change in how overtime is budgeted to align more closely with the prior year’s actuals.
General Fund by Expense Category Analysis: Actual expenditures and encumbered funds are
8.0% and on trend for the same point in the prior three years. Prior years ranged from 9.3% to
10.7% expended as a percent of the revised budget for July.
Department Name FY 2023-24
% EXP
FY 2024-25
% EXP
FY 2025-26
% EXP
STRAIGHT
LINE
FY 2026-27
% EXP TREND
SALARIES 5.9% 5.7% 5.3% 8.3% 4.8%
OVERTIME 13.2% 9.9% 11.7% 8.3% 4.5%
PERS 6.3% 6.6% 6.2% 8.3% 6.3%
MEDICAL BENEFITS 6.9% 6.9% 6.8% 8.3% 7.2%
OTHER BENEFITS 6.4% 6.7% 6.3% 8.3% 6.3%
RETIREE MEDICAL 14.9% 16.6% 14.9% 8.3% 8.5%
MATERIALS &
SUPPLIES
4.3% 13.2% 9.6% 8.3% 13.1%
CONTRACTS 17.7% 30.7% 20.2% 8.3% 33.6%
UTILITIES 22.6% 20.4% 20.3% 8.3% 23.5%
GRANTS AND AWARDS 0.3% 0.1% 11.8% 8.3% 5.3%
PASS THRU 48.0% 54.3% 67.9% 8.3% 5.8%
MISCELLANEOUS 0.0% 0.0% 0.0% 8.3% 0.0%
INT SERVICE CHARGES 1.0% 2.4% 2.7% 8.3% 2.7%
DEBT SERVICE 0.0% 0.0% 0.0% 8.3% 0.0%
CAPITAL PROJECTS 0.0% 0.0% 0.0% 8.3% 0.0%
TRANSFERS OUT 0.0% 0.0% 0.0% 8.3% 0.0%
OPEB 0.0% 0.0% 0.0% 8.3% 0.0%
GENERAL FUND
TOTALS BY CATEGORY
9.3% 10.7% 10.4% 8.3% 8.0%
ITEM NO. 8.
12 Salaries actual expenditures and encumbered funds are 4.8% and trending below the same point in the prior three years. Prior years ranged from 5.3% to 5.9% expended as a percent of the revised budget for July. This is primarily due to reduced pay periods for the current year to
1.29. In comparison, other years have contained more pay periods in July.
Overtime actual expenditures and encumbered funds are 4.5% and trending below the same point in the prior three years. Prior years ranged from 9.9% to 13.2% expended as a percent of the revised budget for July. This is primarily due to reduced pay periods for the current year to
1.29. In comparison, other years have contained two or more in July. Overtime costs are trending lower than last year, and lower than they have on average the past three years.
Medical Benefits actual expenditures and encumbered funds are 7.2% and trending above the same point in the prior three years. Prior years ranged from 6.8% to 6.9% expended as a percent of the revised budget for July. The cause for trending above has not yet been identified; some drivers might include a change in budgeting methodology that has resulted in a lower budgeted number, and changes to health plans chosen. Staff will continue to watch this category and report back in August.
Retiree Medical actual expenditures and encumbered funds are 8.5% and trending below the same point in the prior three years. Prior years ranged from 14.9% to 16.6% expended as a percent of the revised budget for July. This is primarily due to reduced pay periods for the current year to 1.29. In comparison, other years have contained two or more pay periods in July.
Contracts' actual expenditures and encumbered funds are 33.6% and trending above the same point in the prior three years. Prior years ranged from 17.7% to 30.7% expended as a percent of the revised budget for July. This is primarily due to several software contracts with annual subscriptions that were paid in July.
Utilities actual expenditures and encumbered funds are 23.5% and trending above the same point in the prior three years. Prior years ranged from 20.3% to 22.6% expended as a percent of the revised budget for July. This is primarily due to water, light, and signal expenses being charged to this budget that had not been in prior years.
Pass-through actual expenditures and encumbered funds are 5.8% and trending below the same point in the prior three years. Prior years ranged from 48.0% to 67.9% expended as a percent of the revised budget for July. This is primarily due to a reduction in plan check revenues caused by a delay in posting revenues received from the Town’s planning software to the ERP. This trend is expected to improve with August reporting.
All Fund Vacancy Savings by Pay Period Analysis
The adopted budget includes a 4.6% vacancy-savings assumption totaling $2.0 million. This amount was calculated by applying 4.6% to the pre-vacancy salary-and-benefit base of
ITEM NO. 8.
13 $44,545,652. The revised salary-and-benefit budget shown below reflects the resulting vacancysavings reduction The payroll percentage column is derived by taking the 1 pay period in July plus 29% of the last payroll in June that was paid in July, based on the total days in July in that pay period. Adding these two together and dividing by the total pay periods in a year, or 26, arrives at 1.29 pay periods having occurred as of July. The by pay period analysis is appropriate for salaries and overtime categories. The remaining benefit categories are processed monthly (1/12 or 8.3%) and are a more accurate benchmark percentage for analysis of these categories.
Category Revised Budget YTD Expenditures Available Budget PCT USED
% of Pay
Periods/
Straightline
5A SALARIES $24,176,333 $1,170,569 $23,005,764 4.8% 5.0% 5B OVERTIME $ 1,457,000 $65,827 $ 1,391,173 4.5% 5.0%
5C PERS $10,800,788 $680,121 $10,120,668 6.3% 8.3%
5D MEDICAL BENEFITS $ 3,371,803 $242,973 $ 3,128,830 7.2% 8.3% 5E OTHER BENEFITS $ 2,922,678 $182,824 $ 2,739,854 6.3% 8.3% Total Salary and Benefits $ 42,728,602 $ 2,342,314 $ 40,386,289 5.5% 5.0% Salary and benefit expenditures are 5.5% of the revised budget as of July. Salaries and overtime are slightly below the 5.0% payroll-period benchmark, while PERS, Medical Benefits, and Other Benefits are below the 8.3% monthly straight-line benchmark. A dedicated vacancy report is not yet available from the ERP; once operational, staff will use that report to provide a more direct analysis of vacancy savings.
CONCLUSION
Both revenue and expenditure reports for July show the Town is generally tracking within or below prior-year trends. General Fund expenditures are at 8.0% of the revised budget, including encumbrances, compared with the 8.3% straight-line benchmark. Salary and overtime expenditures are slightly below the payroll-period benchmark, while benefit categories remain below the 8.3% monthly benchmark.
ITEM NO. 8.
PREPARED BY: Chris Constantin
Town Manager
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: 10/06/2026
ITEM NO: a.
DATE: October 6, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Discussion of Potential Amendments to Council Policy 2-04 and Board, Committee, and Commission Policy 2-19 Regarding Disclosure of Personal, Professional, and Business Relationships in Pending Matters RECOMMENDATION: Discuss whether Council Policy 2-04 and Board, Committee, and Commission Policy 2-19 should be considered for future
amendment to address disclosure on the record, before a decision, of personal, professional, and business relationships with persons having an interest in the matter. No policy amendments are before the Council for action at this meeting.
FISCAL IMPACT:
No direct fiscal impact is associated with this initial Council discussion. If a Council majority later directs preparation of policy amendments, staff and Town Attorney review would be performed within existing resources unless the scope of work requires otherwise.
STRATEGIC PRIORITY:
Not applicable. This item is a Council requested governance policy discussion.
BACKGROUND:
At the September 15, 2026 regular Town Council meeting, Councilmember Mary Badame requested under Council Matters that the Council agendize consideration of an amendment to Council Policy 2-04, with a conforming change to Council Policy 2-19, requiring disclosure on the record before the decision of personal, professional, and business relationships with those who have an interest in the matter. Councilmember Matthew Hudes supported the request.
The procedure for placing an item on a future Council agenda is governed by Council Policy 2- 01, Town Agenda Format and Rules. Council Policy 2-01, Town Agenda Format and Rules,
ITEM NO. a.
PAGE 2 OF 4
SUBJECT: Relationship Disclosure Policy Discussion
DATE: October 6, 2026
provides that during Council Matters any Council Member may request that an item be placed on a future agenda for Council discussion. If a second Council Member supports the request, the item is scheduled on the next agenda under Council Matters for discussion purposes only.
Policy 2-01 also provides that three or more Council Members may provide direction requesting action at any time and, when an item requires significant staff effort as determined by the Town Manager, three or more Council Members must vote in favor of placing the item on a future agenda for action.
The September 15 request, having received support from a second Council Member, was placed on the agenda for initial Council discussion pursuant to Policy 2-01. Although consideration of a potential amendment was requested, no amendment to Council Policy 2-04 or Policy 2-19 is being proposed for consideration or action at this time.
For additional reference, Policy 2-11 related to Commission Requirements and Guidelines:
Residency, Attendance, and Quorum, and Appointments includes conflict of interest language for commissions. The language specifies
“Under the Political Reform Act, a Commissioner has a disqualifying conflict of interest in a governmental decision if it is foreseeable that the decision will have a financial impact on his or her personal finances or other financial interests. In such cases, there is a risk of biased decision making that could sacrifice the public’s interest in favor of the official’s private financial interests. To avoid actual bias or the appearance of possible improprieties, the public official is prohibited from participating in the decision. While all Commissioners must at a minimum comply with the Political Reform Act regulations, they should also avoid the appearance of a conflict of interest.
Some Board and Commission members serve on non-profit boards or are employed by non-profit organizations. Board and Commission members may not participate in decisions, which includes making recommendations to the Town Council, in which they have a potential conflict of interest, which can be a financial or a personal interest. In the event of a potential conflict of interest, the Board or Commission member must recuse themselves and provide a brief statement explaining the reason for recusal. Even if it is determined that there is no potential conflict of interest, the Board or Commission member must state that their affiliation with the non-profit organization before participating in the decision.”
While this policy was not requested during the Council Matter, the language is relevant to the request made by the two Council members.
ITEM NO. a.
PAGE 3 OF 4
SUBJECT: Relationship Disclosure Policy Discussion
DATE: October 6, 2026
DISCUSSION:
Requested Policy Change
The requested discussion concerns whether the Council wishes to further consider a policy requiring Council Members to disclose on the record, before a decision, personal, professional, and business relationships with those who have an interest in the matter. If the Council directs preparation of amendments, the concept would also be considered for a conforming change to Policy 2-19 applicable to Town boards, committees, and commissions.
Existing Policy Framework
Policy 2-04 states that the Council Code of Conduct is intended to promote public trust and a culture of respect and ethical behavior and identifies transparency and accountability as elements of effective governance. It also contains a specific land use provision requiring Council Members to disclose ex parte communications and information obtained outside the public record that may influence a decision, with disclosure before Council deliberations.
Policy 2-19 establishes roles, responsibilities, and conduct standards for Town boards, committees, and commissions. It states that Commissioners should maintain public trust and be aware of and avoid potential conflicts of interest. For land use applications, Policy 2-19 requires information obtained outside the public record that may influence a Commissioner's decision to be placed into the record at the public hearing.
The requested concept would extend beyond these existing land use related disclosure provisions. At this stage, however, the purpose is to allow Council discussion of the concept and whether there is majority support to advance it for later formal consideration.
Next Step Under Council Policy 2-01
If three or more Council Members support advancing the concept, the Council may provide direction consistent with Policy 2-01 for staff to return on a future agenda with proposed amendments and supporting legal and implementation analysis. If a majority does not provide such direction, no further work is required. If additional information is needed before determining whether to proceed, Policy 2-01 allows the Council to continue the discussion so staff may obtain the requested information, with approval by a majority of the Council.
CONCLUSION:
This item is the initial Council Matters discussion resulting from the September 15 request and concurrence. No policy amendment is presented for action. Any direction to develop amendments for future Council consideration would require support from at least three Council Members consistent with Policy 2-01.
ALTERNATIVES:
1. Conclude the discussion without further direction.
ITEM NO. a.
PAGE 4 OF 4
SUBJECT: Relationship Disclosure Policy Discussion
DATE: October 6, 2026
2. Continue the discussion to a future meeting if additional information is needed, consistent with Council Policy 2-01.
3. If three or more Council Members support moving the concept forward, they may provide direction for staff to return with a future agenda item containing proposed amendments for Council consideration and possible action.
COORDINATION:
This report was prepared by the Town Manager’s Office in coordination with the Town Attorney’s Office.
ENVIRONMENTAL ASSESSMENT:
This is not a project defined under CEQA, and no further action is required.
Attachments:
1. Council Policy 2-04, Town Council Roles and Responsibilities, Including Code of Conduct
2. Council Policy 2-19, Board, Committee, and Commission Roles and Responsibilities, Including Code of Conduct
3. Council Policy 2-11, Commission Requirements and Guidelines: Residency, Attendance, Quorum, and Appointments
ITEM NO. a.
i
0,,,,,(. LOS GATOS COUNCIL POLICY MANUAL
Small Town Service Community Stewardship Future Focus
IIIIiii
Title: Town Council Roles and Responsibilities, Policy Number: 2- 04 Including Code of Conduct
Effective Date: 5/ 3/ 2004 Pages: 8
Enabling Actions: 2004- 059; 2006- 111; Revised Date: 12/ 17/ 2012; 3/ 3/ 2015; 2021- 047 12/ 17/ 2019; 11/ 2/ 2021; 10/ 04/ 2022;
8f 19/ 2025
Approved: —41-44,c;:;". ,..4..\, e76\.________
I. Preamble
This Policy sets forth the roles, responsibilities, and Code of Conduct for Council Members. The legal responsibilities of the Los Gatos Town Council are set forth by applicable state and federal laws. In addition, the Town Council has adopted regulations, including this Code of Conduct Policy, that hold Council Members to standards of conduct above and beyond what is required by law. This Policy is written with the assumption that Council Members, through training, are aware of their legal and ethical responsibilities as elected officials. The purpose of this Policy is not only to ensure legal compliance but also to promote the public' s trust in Town government and foster a culture of respect and ethical behavior. The Council recognizes that effective governance depends on transparency, accountability, and mutual respect among Council Members, staff, and the public.
II. Council- Manager Form of Government
The Town of Los Gatos operates under a Council- Manager form of government as prescribed by Town Code, Section 2. 30.305. Accordingly, members of the Council are elected at-large, provide legislative direction, set Town policy, and ultimately answer to the public. The Town Manager serves as the Town' s chief administrative officer and is responsible for directing the day-to-day operations of the Town and implementing policy direction.
Ill. Town Council Roles and Responsibilities
The role of the Town Council is to act as a legislative and quasi-judicial body. Through its legislative and policy authority, the Council is responsible for assessing and achieving the community' s desire for its present and future and for establishing policy direction to achieve its desired outcomes. All members of the Town Council, including those who serve as Mayor and Vice Mayor, have equal votes.
Members of the Town Council fulfill their role and responsibilities through the relationships they have with each other and the public. Town Council Members should approach their ATTACHMENT 1
ITEM NO. a.
Page: Policy Number:
TITLE: Town Council Code of Conduct Page 2 of 9 2- 04
work, each other, and the public in a manner that reflects ethical behavior, honesty and integrity. The commitment of Town Council Members to their work is characterized by open constructive communication, innovation, and creative problem solving.
IV. Mayoral and Vice Mayoral Selection Process
Per Town Municipal Code, Section 2. 20. 035, the selection of the Mayor and Vice Mayor occurs annually at a special meeting in December by majority vote of the Town Council. The Mayor and Vice Mayor serve at the pleasure of the Town Council and may be replaced by a majority vote of the Council.
V. Mayoral and Vice Mayoral Roles, Responsibilities, Relationships The following outlines some of the key roles, responsibilities, and relationships as they relate to the positions of Mayor and Vice Mayor:
Mayor
A. The Mayor is the presiding officer of the Town Council. In this capacity, the Mayor is responsible for developing Council agendas in cooperation with the Town Manager and leading Council meetings.
B. The Mayor recommends various standing committee appointments to the Council for approval.' This will be done at a Council meeting in December of each year. When making committee recommendations, the Mayor should attempt to balance shared responsibilities and opportunities among Council Members. The Mayor may also appoint citizens to committees not established by Town ordinance or resolution as the Mayor deems appropriate.
C. With regard to decisions made by a majority of the Town Council, the Mayor is responsible for communicating with the Town Council, the Town Manager, members of the public, and the media regarding decisions made by a majority of the Town Council.
The Mayor also represents the Council at official and ceremonial occasions.
D. The Mayor performs special duties consistent with the Mayoral office, including, but not limited to: signing of documents on behalf of the Town, issuing proclamations, serving as the official voting delegate for various municipal advocacy groups, and delivering the State of the Town Address at his or her discretion.' The Town Council will determine any additional authority or duties that the Mayor shall perform.
E. Special duties consistent with the Mayoral office may be delegated to the Vice Mayor in the absence of the Mayor. If the Vice Mayor is unavailable, the duties of the Mayor will be delegated to another Council Member in order of seniority. If those Council Members are of equal seniority, one of them will be selected by alphabetical order.
Council Agenda Format and Rules Policy
2 Council Commendation and Proclamation policy