Los Gatos City Council
October 20, 2026

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

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

CALL MEETING TO ORDER

ROLL CALL

PLEDGE OF ALLEGIANCE

PRESENTATIONS
i. Mayor's Recognitions
ii. West Valley Recycles Presentation
CONSENT ITEMS (Consent Items are considered routine Town business and may be approved by one motion. Any member of the Council may remove an item from the Consent Items for comment and action. Members of the public may provide input on any or multiple Consent Item(s) when the Mayor asks for public comments on the Consent Items. If you wish to comment, please follow the Participation Instructions located at the end of this agenda. If an item is removed, the Mayor has the sole discretion to determine when the item will be heard. Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)

1. Approve the Minutes of the October 6, 2026 Town Council Special Meeting.

RECOMMENDATION: Approve the Minutes of the October 6, 2026 Town Council Special Meeting.
*AMENDED

TOWN OF LOS GATOS

COUNCIL MEETING AGENDA
OCTOBER 20, 2026
110 EAST MAIN STREET AND TELECONFERENCE

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

2. Approve the Minutes of the October 6, 2026 Town Council Meeting.

RECOMMENDATION: Approve the Minutes of the October 6, 2026 Town Council Meeting.

3. Receive the August 2026 Expenditure and Revenue Reports RECOMMENDATION: Receive the August 2026 Expenditure and Revenue Reports.

4. Receive the Monthly Financial and Investment Report for August 2026.

RECOMMENDATION: Receive the Monthly Financial and Investment Report for August 2026.

5. Approve and Ratify the Accounts Payable Check Registers and Payroll Report.

RECOMMENDATION: Approve the Accounts Payable Check Registers dated September 25, 2026, October 2, 2026, and October 9, 2026, and ratify and approve the Payroll Report dated October 2, 2026.

6. Authorize the Town Manager to Execute a First Amendment with Foster and Foster Consulting Actuaries, Inc., to Amend the Scope of Services RECOMMENDATION: Authorize the Town Manager to execute a First Amendment with Foster and Foster Consulting Actuaries, Inc., to amend the scope of services.

7. Authorize the Town Manager or Designee to Enter into a Three-Year Agreement with ClearGov for Budget and Planning Suite and Personnel Budgeting Software in an Amount Not to Exceed $175,366.

RECOMMENDATION: Authorize the Town Manager or designee to execute a three year agreement with ClearGov for Budget and Planning Suite and Personnel Budgeting Software in an amount not to exceed $175,366; and approve a FY 2026-27 budget adjustment of $75,090, including the necessary transfer from the General Fund and corresponding expenditure appropriation in the Information Technology Internal Service Fund, funded by General Fund unassigned fund balance. Expenditures in subsequent fiscal years shall be subject to annual appropriations.

8. Authorize the Town Manager to Negotiate and Execute an Amendment to the Lease Agreement with the Friends of the Los Gatos Library.

RECOMMENDATION: Authorize the Town Manager to negotiate and execute an amendment to the Lease Agreement with the Friends of the Los Gatos Library.

9. Authorize the Town Manager to execute an Amendment to the Annual Agreement for Services with the Los Gatos Chamber of Commerce, for a One-Time Increase in Funding From $88,000 to a Not to Exceed Amount of $108,000 for FY 2026-27, to Further Support Visitor Attraction and Engagement Services Provided by the Los Gatos Chamber of Commerce.

RECOMMENDATION: Authorize the Town Manager to execute an amendment to the FY 2026-27 Agreement for Services with the Los Gatos Chamber of Commerce, increasing the total agreement amount by $20,000, from $88,000 to an amount not to exceed $108,000, for visitor attraction and engagement services; and authorize a $20,000 increase in expenditure appropriations for Account 2106-67102, funded by the General Fund unassigned fund balance.

10. Receive the Finance Commission’s Recommendation and Authorize the Town Manager to Execute an Agreement with Badawi & Associates to Provide Auditing Services for the Town of Los Gatos.

RECOMMENDATION: Receive the Finance Commission’s Recommendation and authorize the Town Manager to execute a three-year agreement with Badawi & Associates and include the option to extend for two additional one-year terms in an amount of $163,094 for the three-year term, $57,660 for the first year extension, $59,389 for the second year extension, and a $5,000 contingency.
*11. Adopt a Resolution Authorizing the Town Manger to Execute an AB 130 Tolling Agreement for a Townhome Project Located at 15495 Los Gatos Boulevard RECOMMENDATION: Adopt a resolution authorizing the Town Manager to execute an AB 130 tolling agreement with the applicant for a townhome project located at 15495 Los Gatos Boulevard.

VERBAL COMMUNICATIONS (Members of the public are welcome to address the Town Council on any matter that is not listed on the agenda and is within the subject matter jurisdiction of the Town Council. The law generally prohibits the Town Council from discussing or taking action on such items. However, the Council may instruct staff accordingly. Town resources may not be used to facilitate audio or visual presentations. To ensure all agenda items are heard, this portion of the agenda is limited to 30 minutes. In the event additional speakers were not heard during the initial Verbal Communications portion of the agenda, an additional Verbal Communications will be opened prior to adjournment. Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)
OTHER BUSINESS (Each speaker is limited to no more than three (3) minutes or such time as authorized by the Mayor.)

12. Authorize the Town Manager to Execute a Two-Year Professional Services Agreement with Transtech Engineers, Inc. for CIP Program Management; Authorize Re-assignment of the Kennedy Road Sidewalk and Bike Lanes Project to Tier 1; and Authorize a Budget Adjustment from the Available Unassigned GFAR Fund Balance RECOMMENDATION: Authorize the Town Manager to execute a two-year Agreement for Professional Services with Transtech Engineers, Inc. for an amount not to exceed $1,018,000 for FY26-27 Capital Improvement Program (CIP) Management and Engineering Support Services in the general form provided here; authorize the Town Manager to reassign the Kennedy Sidewalk and Bike Lanes Project from Tier 2 to Tier 1; and authorize a budget adjustment in the amount of $150,000 to fund the Kennedy Road Sidewalk and Bike Lanes Project (4118146) Feasibility Analysis.

PUBLIC HEARINGS (Presentations during the Public Hearings portion of the agenda by appellants and applicants, including any expert or consultant assisting with the presentation, shall be limited to a total of no more than five (5) minutes for all speakers. Appellants and applicants shall be provided no more than three (3) minutes to rebut at the end of the public hearing. Visual presentations that require the use of staff resources shall be limited to appellants and applicants.

Members of the public testifying at public hearings shall be limited to no more than three (3) minutes, or such time as authorized by the Mayor.)

13. Consider a Recommendation by the Planning Commission to Introduce an Ordinance Amending Chapter 29 (Zoning Regulations) of the Town Code Regarding Objective Design Standards for Single-Family and Two-Family Residential Dwelling Units and Second-Story Additions. The Proposed Amendments to the Town Code are Not Subject to CEQA Review Pursuant to CEQA Section 15061(b)(3) Because it can be Seen with Certainty that they will not Significantly Affect the Physical Environment in that they Make Minor Changes to the Regulations and Design Review Process Applicable to New Single-Family and Two-Family Residential Dwelling Units and Second-Story Additions.

Town Code Amendment Application A-26-003. Project Location: Town Wide. Applicant:

Town of Los Gatos. Project Planner: Ryan Safty.

RECOMMENDATION: Accept the Planning Commission’s recommendation, conduct a public hearing, and introduce an Ordinance amending Chapter 29 (Zoning Regulations) of the Town Code regarding objective design standards for single-family and two-family residential dwelling units and second-story additions.

14. Consider a Recommendation of Approval by the Planning Commission to Adopt a Resolution Amending the North Forty Specific Plan to Allow for a Senior Living Facility to be Authorized as a Permitted Use in the Northern District on Properties Zoned North Forty Specific Plan and North Forty Specific Plan: Housing Element Overlay Zone. Project Location: North Forty Specific Plan Area. North Forty Specific Plan Amendment Application A-26-002. Not Subject to CEQA Review Pursuant to CEQA Guidelines Section 15061 (b)(3) Because it Can Be Seen with Certainty That There Is No Possibility That the Amendment to the Specific Plan Would Have a Significant Effect on the Environment. All Projects to which the Specific Plan Applies Will Undergo Separate CEQA Review and Approval. Additionally, the Town Council Certified an Environmental Impact Report and Mitigation Monitoring and Reporting Program for the North Forty Specific Plan on January 20, 2015; Therefore, No Additional Environmental Review is Necessary for the Proposed Amendment. Property Owner: Tama Holdings LLC. Applicant: Jared Gamelin.

Project Planner: Jocelyn Shoopman.

RECOMMENDATION: Accept the Planning Commission’s recommendation and adopt the Resolution amending the North Forty Specific Plan to allow for a senior living facility to be authorized as a permitted use in the Northern District.

COUNCIL MATTERS (Members of the public who wish to speak on matters listed under Council Matters may do so under Verbal Communications.)
a. Discuss Potential Future Council Consideration of Requests Associated with a MultiCultural Winter Celebration

MANAGER MATTERS

ATTORNEY MATTERS AND CLOSED SESSION REPORT

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

Please notify the Clerk’s Office at least two (2) business days prior to the meeting so that reasonable arrangements can be made to ensure accessibility in compliance with 28 CFR §35.102-

35.104 and related provisions.

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

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

The public is welcome to provide oral comments in real-time during the meeting in three ways:
 Zoom Webinar (Online): To participate from a PC, Mac, iPad, iPhone or Android device.

Please use this URL to join: https://losgatoscagov.zoom.us/j/86730363468?pwd=pfKQoh92JnbwOYwFvZqIdSSWpjxYoK.1 Passcode: 577971. You can also type in 867 3036 3468 in the “Join a Meeting” page on the Zoom website at www.zoom.us and use passcode 577971. When the Mayor announces the item for which you wish to speak, click the “raise hand” feature in Zoom.  Telephone: To participate by phone please dial 1 (408) 961-3927 or 1 (855) 758-1310 for US Toll-free and use Meeting ID: 867 3036 3468. When the Mayor announces the item for which you wish to speak, press *9 on your telephone keypad to raise your hand.  In-Person: Please complete a “speaker’s card” located on the back of the chamber benches and submit it to the Town Clerk before the meeting or when the Mayor announces the item for which you wish to speak.

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

Deadlines to submit written comments are:
-3:00 p.m. the Thursday before the Council meeting for inclusion in the agenda packet. -3:00 p.m. the Friday and Monday before the Council meeting for inclusion in an addendum. -11:00 a.m. the day of the Council meeting for inclusion in a desk item. * The Agenda was amended to add Item 11 - Adopt a Resolution Authorizing the Town Manger to Execute an AB 130 Tolling Agreement for a Townhome Project Located at 15495 Los Gatos Boulevard.

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

TOWN OF LOS GATOS

COUNCIL CLOSED SESSION MINUTES
MEETING DATE: 10/20/2026
ITEM NO: 1
DRAFT
Minutes of the Town Council Special Meeting Closed Session Tuesday, October 6, 2026
The Town Council of the Town of Los Gatos conducted a special meeting in person and by teleconference to hold a Closed Session.

MEETING CALLED TO ORDER AT 5:16 P.M.

ROLL CALL

Present: Mayor Rob Moore, Vice Mayor Ristow, Council Member Mary Badame, Council Member Rennie, Council Member Matthew Hudes (participated remotely in accordance with Government Code Section 54953(b)(3)).

Absent: None.

VERBAL COMMUNICATIONS (ONLY ON ITEMS ON THE AGENDA)
The following individual spoke:

1. Member of the Public
The Town Attorney announced the closed session title as listed on the agenda.

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

1. Public Employment (Gov. Code Section 54957)
Title: Town Attorney Recruitment

2. Employee Performance Evaluation (Government Code Section 54957) Title: Town Manager

3. Conference with Legal Counsel – Anticipated Litigation Significant exposure to litigation pursuant to subdivision (d)(2) of Government Code Section 54956.9: 1 Case
(Collection of Business License Tax from Commercial Landlords)

4. Conference with Real Property Negotiator (Government Code Section 54956.8) Property: Real Property APNs 529-01-028 and -029
Agency Negotiator(s): Chris Constantin, Town Manager; Joel Paulson, Community Development Director
Negotiating Parties: Michael T Labarbera Trustee & et al Under Negotiation: Lease Terms
Gabrielle Whelan, Town Attorney, stated that the Town Council met in closed session to discuss the Town Attorney recruitment, the Town Manager performance evaluation, one matter of anticipated litigation, and one matter of real property negotiations. She stated that there was one reportable item out of closed session with regard to the issue of collecting Business License

ITEM NO. 1.

PAGE 2 OF 2
SUBJECT: Draft Minutes of the Special Town Council Meeting of October 6, 2026 DATE: October 6, 2026
Tax from Commercial Landlords. She reported that the Town will be collecting the tax from commercial landlords in 2026 and going forward.

ADJOURNMENT
The meeting adjourned at approximately 6:51 p.m.

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

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 10/20/2026
ITEM NO: 2
DRAFT
Minutes of the Town Council Meeting
Tuesday, October 6, 2026
The Town Council of the Town of Los Gatos conducted a regular meeting in person and via teleconference.

MEETING CALLED TO ORDER AT 7:02 P.M.

ROLL CALL

Present: Mayor Rob Moore, Vice Mayor Ristow, Council Member Mary Badame, Council Member Rennie, Council Member Matthew Hudes (participated remotely in accordance with Government Code Section 54953(b)(3)).

Absent: None.

PLEDGE OF ALLEGIANCE
Council Member Rennie led the Pledge of Allegiance. The audience was invited to participate.

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

1. Approve the Minutes of the September 15, 2026, Special Town Council Meeting: Study Session.

2. Approve the Minutes of the September 15, 2026, Town Council Meeting.

3. Consent to Relieve Denali Tree Services of its Bid Due to a Bidder’s Mistake, Award the Project to Community Tree Service LLC, and Find the Project Categorically Exempt (CEQA Section 15304).

4. Authorize the Town Manager to Execute the First Amendment to an Agreement for Professional Services with Dudek for Environmental Monitoring and Support Services Related to Roadside Vegetation Management Increasing Compensation by $24,915, for a Total Amount Not to Exceed $404,057.

5. Approve and Ratify the Accounts Payable Check Registers and Payroll Report.

6. Approve the Finance Commission’s Updated 2026 Work Plan.

7. Adopt a Resolution Amending the Town of Los Gatos Purchasing Policy (Policy 4-06) and Repeal the Previous Policy. RESOLUTION 2026-057
Mayor Moore opened public comment.

The following individual spoke on the consent items:

1. Member of the Public (Items 1, 2, 3, 4, 6, 7)
Mayor Moore closed public comment.

ITEM NO. 2.

PAGE 2 OF 4
SUBJECT: Draft Minutes of the Town Council Meeting of October 6, 2026 DATE: October 6, 2026
(Video time: 00:08:11)
MOTION: Motion by Council Member Badame to approve consent items one through seven. Seconded by Vice Mayor Ristow.

VOTE: Motion passed unanimously by roll call vote.

VERBAL COMMUNICATIONS
Mayor Moore opened public comment.

The following individuals spoke during verbal communications:

1. Michael Kane

2. Diane Fisher

3. Member of the Public

4. Austin

5. Gordon Yamate

6. Joe Enz

7. Dorene and Jim

8. Joanne Rodgers

9. John Doe

10. Leanne

11. Susan Burnett
Mayor Moore closed public comment.

OTHER BUSINESS

8. Receive the July 2026 Expenditure and Revenue Reports and Approve the Monthly and Quarterly Reporting Formats.

Kristina Alfaro, Administrative Services Director, gave a presentation.

Mayor Moore opened public comment.

The following individuals spoke on this item:

1. Heidi Owens
Mayor Moore closed public comment.

Mayor Moore re-opened public comment.

2. Member of the Public
Mayor Moore closed public comment.

ITEM NO. 2.

PAGE 3 OF 4
SUBJECT: Draft Minutes of the Town Council Meeting of October 6, 2026 DATE: October 6, 2026
Council discussed the item.
(Video time: 01:13:27)
MOTION: Motion by Council Member Badame to 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 quarter ending reporting period: September, December, and March. Seconded by Vice Mayor Ristow.

VOTE: Motion passed unanimously by roll call vote.

COUNCIL MATTERS
a. 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.

Chris Constantin, Town Manager, provided information.
(Video time: 01:23:45)
MOTION: Motion by Council Member Badame to provide direction to staff to return to Council on a future agenda with proposed amendments to Council Policy 2-04 and 2-19 addressing disclosure of personal, professional, and business relationships with those who have an interest in the matter. Direction would also include supporting legal and implementation analysis. Seconded by Mayor Moore.

VOTE: Motion passed unanimously by roll call vote.

Mayor Moore stated that he would like to agendize the discussion of the Town of Los Gatos’s role in supporting a multicultural, multireligious, winter celebration, and part of the discussion to include waiving the hourly fee for the weekly series portion of the event. - Council Member Rennie stated he met with Santa Clara Valley Water staff regarding an upcoming meeting agenda and presentation.
- Vice Mayor Ristow stated she attended a Saratoga City Council Meeting; met with representatives from the Police Officers Association (POA); participated in the League of California Cities Annual Conference; attended the Kiwani’s Fiesta de Artes, the El Camino Health Los Gatos Cancer Center ribbon cutting, the Los Gatos-Monte Sereno Police Department Swearing-In Ceremony; met with Finance Commissioner Jay McGowan; attended the Terraces of Los Gatos Wine and Car Show, and the St. Mary’s Country Fair. - Council Member Badame stated she attended a fundraiser at the History Club of Los Gatos; participated in a meeting of a resident wildfire advisory group; attended a Saratoga Town Hall Meeting, a Silicon Valley Animal Control Authority Board Meeting, the El Camino Health

ITEM NO. 2.

PAGE 4 OF 4
SUBJECT: Draft Minutes of the Town Council Meeting of October 6, 2026 DATE: October 6, 2026
Los Gatos Cancer Center ribbon cutting, the Los Gatos-Monte Sereno Police Department Swearing-In Ceremony, and a Finance Commission meeting. - Council Member Hudes stated he attended the Saratoga Council Meeting; participated in a meeting of the West Valley Wildfire Advisory Council; participated in the Silicon Valley Regional Interoperability Authority Board of Directors meeting; participated in a Community Health and Senior Services Commission (CHSSC) meeting, the El Camino Health Los Gatos Cancer Center ribbon cutting, the Los Gatos-Monte Sereno Police Department Swearing-In Ceremony, and met with the Executive Director of Los Gatos-Saratoga Recreation. - Mayor Moore stated he met with Scout Troop 539, Junior Girl Scout Troop 6003; ran in the Los Gatos Rotary’s Great Race; attended the Los Gatos Lion’s Club Annual Date Night, Los Gatos Art and Wine Festival; attended the Chamber of Commerce Taste of Los Gatos, several cultural and community nights at local elementary schools, the Los Gatos Police Academy Community Kick-Off Night, the Los Gatos-Monte Sereno Police Department Swearing-In Ceremony; participated in the El Camino Health Los Gatos Cancer Center ribbon cutting, and Reveal Aesthetics ribbon cutting, and served as a guess DJ on KPCR local radio station.

MANAGER MATTERS
Chris Constantin, Town Manager
- Stated that recruitment for Town Boards and Commissions will be opening in the next week, the Youth Commission Recruitment will open in Spring 2027, and asked anyone interested to sign up for Notify Me.
- Attended the Swearing-In Ceremony for the Los Gatos-Monte Sereno Police Department.

ATTORNEY MATTERS AND CLOSED SESSION REPORT
Gabrielle Whelan, Town Attorney
- Stated that the Town Council met in closed session to discuss the Town Attorney recruitment, the Town Manager performance evaluation, one matter of anticipated litigation, and one matter of real property negotiations. With regard to the matter of anticipated litigation, the Town will continue to collect business license taxes from commercial landlords beginning with the year 2026 and following.

ADJOURNMENT
The meeting adjourned at 8:53 p.m.

Respectfully Submitted:
_____________________________________
Jenna De Long, Deputy Town Clerk

ITEM NO. 2.

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: 10/20/2026
ITEM NO: 3
DATE: October 20, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive the August 2026 Expenditure and Revenue Reports RECOMMENDATION: Receive the August 2026 Expenditure and Revenue Reports.

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 provided to the Finance Commission in its October 12, 2026, meeting agenda packet. In addition, reports by department and by department and category were also provided. The Commission approved the August reports on consent. The monthly reporting format approved by the Town Council at the October 6, 2026 meeting was used.

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. The August 2026 expenditure and revenue reports were agendized for the October Finance Commission meeting, but that meeting was cancelled due to a lack of quorum. Finance

ITEM NO. 3.

PAGE 2 OF 2
SUBJECT: Receive the August 2026 Expenditure and Revenue Reports DATE: October 20, 2026
Commissioner comments were received for this item and are attached along with the staff response to the comments. These reports will come back to the Finance Commission at their next meeting.

DISCUSSION:

The August 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.

CONCLUSION:

The August 2026 reports show total revenues at 7.4% of the revised budget and total expenditures and encumbrances at 21.1%. General Fund revenues are at 8.8%, and General Fund expenditures and encumbrances are at 14.7%. Staff recommends that the Town Council receive the reports.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Expenditure by Fund

2. Expenditure by Fund and Category

3. Revenue by Fund

4. Revenue by Fund and Category

5. Monthly Financial Report

6. Historical August Report

7. Finance Commission Desk Item

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT EXPENDITURES
Report generated: 10/06/2026 18:36
User: kalfaro
Program ID: glytdbud

BY FUND
FOR 2027 02

ORIGINAL REVISED AVAILABLE PCT

APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 111 GENERAL FUND 66,201,027 67,139,833 7,215,063.59 4,082,592.34 2,840,418.14 57,084,351.47 15.0% 121 MEASURE G FUND 1,267,556 1,267,556 .00 11,650.00 .00 1,267,556.00 .0% 222 URBAN RUNOFF FUND 272,433 272,433 35,001.37 14,110.88 .00 237,431.68 12.8% 231 BLACKWELL DISTRICT 3,544 3,544 93.00 93.00 1,023.00 2,428.00 31.5% 232 KENNEDY MEADOWS DISTRICT 12,695 12,695 609.00 609.00 6,699.00 5,387.00 57.6% 233 GEMINI COURT DISTRICT 1,628 1,628 46.00 46.00 506.00 1,076.00 33.9% 234 SANTA ROSA HEIGHTS DISTRICT 8,087 8,087 559.00 559.00 6,149.00 1,379.00 82.9% 235 VASONA HEIGHTS DISTRICT 8,957 8,957 633.42 633.42 4,125.00 4,198.20 53.1% 236 HILLBROOK DISTRICT 5,578 5,578 140.00 140.00 1,540.00 3,897.52 30.1% 251 LOS GATOS THEATRE 82,919 82,919 8,057.85 7,838.11 9,350.00 65,510.99 21.0% 261 LIBRARY TRUST DONATIONS 72,000 72,000 5,711.10 2,240.06 .00 66,288.90 7.9% 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 1,010,003.00 919,634.84 -808,404.69 4,052,765.56 4.7% 412 COMMUNITY CENTER DEVELOPMENT 0 0 .00 .00 228,390.00 -228,390.00 100.0% 421 GRANT FUNDED PROJECTS 36,750 36,750 162,248.38 162,248.38 -162,248.38 36,750.00 .0% 461 STORM BASIN 1 0 0 12,698.75 12,698.75 -12,698.75 .00 .0% 462 STORM BASIN 2 130,000 130,000 77,279.80 77,279.80 150,538.20 -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 1,527,563.94 1,527,356.45 666,665.76 -170,422.70 108.4% 611 GENERAL LIABILITY FUND 1,416,500 1,416,500 1,261,496.00 3,627.00 .00 155,004.00 89.1% 612 WORKERS COMPENSATION FUND 1,762,379 1,762,379 621,631.68 35,953.31 48,267.33 1,092,479.99 38.0% 621 INFORMATION TECHNOLOGY 1,313,722 1,313,722 611,520.42 60,649.55 229,608.24 472,592.94 64.0% 631 EQUIPMENT REPLACEMENT FUND 338,843 354,292 15,448.20 .00 -15,448.20 354,291.97 .0% 633 FACILITIES MAINTENANCE FUND 1,776,027 1,776,027 173,842.66 91,234.70 439,604.74 1,162,579.33 34.5% 942 SA TRUST FUND 3,938,045 3,938,045 1,787,992.60 14,786.85 .00 2,150,052.33 45.4% GRAND TOTAL 84,944,559 85,898,814 14,527,639.76 7,025,981.44 3,634,084.39 67,737,090.18 21.1% ** END OF REPORT - Generated by Kristina Alfaro **
ATTACHMENT 1

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT EXPENDITURES
Report generated: 10/06/2026 18:37
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

ORIGINAL REVISED AVAILABLE PCT

APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 111 GENERAL FUND
5A SALARIES 24,176,333 24,176,333 3,017,927.27 1,847,358.13 .00 21,158,405.89 12.5% 5B OVERTIME 1,457,000 1,457,000 184,715.81 118,888.34 .00 1,272,284.19 12.7% 5C PERS 10,800,788 10,800,788 1,440,347.05 760,226.49 .00 9,360,441.44 13.3% 5D MEDICAL BENEFITS 3,371,803 3,371,803 491,180.98 248,208.29 .00 2,880,622.26 14.6% 5E OTHER BENEFITS 2,922,678 2,922,678 381,177.97 198,353.94 .00 2,541,499.89 13.0% 5F RETIREE MEDICAL 2,193,606 2,193,606 361,710.44 175,953.62 10,582.00 1,821,313.56 17.0% 5G MATERIALS & SUPPLIES 1,162,435 1,162,435 94,596.87 49,451.16 272,686.91 795,151.42 31.6% 5H CONTRACTS 6,418,548 7,357,354 730,541.18 396,002.16 2,262,567.01 4,364,246.05 40.7% 5I UTILITIES 1,001,460 1,001,460 166,960.38 87,406.79 155,347.20 679,152.64 32.2% 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 60,535.23 50,865.32 124,235.02 1,277,822.75 12.6% 5L MISCELLANEOUS 0 0 .00 .00 .00 .00 .0%
5M INT SERVICE CHARGES 5,065,614 5,065,614 272,367.61 136,875.30 .00 4,793,246.18 5.4% 5N DEBT SERVICE 2,057,884 2,057,884 13,002.80 13,002.80 .00 2,044,881.20 .6% 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 67,139,833 7,215,063.59 4,082,592.34 2,840,418.14 57,084,351.47 15.0% 121 MEASURE G FUND
5H CONTRACTS 50,520 50,520 .00 11,650.00 .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 11,650.00 .00 1,267,556.00 .0% 222 URBAN RUNOFF FUND
5A SALARIES 128,934 128,934 14,267.54 8,552.69 .00 114,666.27 11.1% 5C PERS 40,378 40,378 5,587.67 2,897.32 .00 34,790.11 13.8% 5D MEDICAL BENEFITS 14,209 14,209 1,665.51 821.52 .00 12,543.81 11.7% 5E OTHER BENEFITS 9,020 9,020 1,214.05 665.27 .00 7,806.25 13.5% 5G MATERIALS & SUPPLIES 3,717 3,717 .00 .00 .00 3,717.00 .0% 5H CONTRACTS 55,406 55,406 11,241.02 .00 .00 44,164.98 20.3% 5I UTILITIES 14,265 14,265 244.27 767.16 .00 14,020.73 1.7% 5M INT SERVICE CHARGES 6,504 6,504 781.31 406.92 .00 5,722.53 12.0% ATTACHMENT 2

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT EXPENDITURES
Report generated: 10/06/2026 18:37
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

ORIGINAL REVISED AVAILABLE PCT

APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED TOTAL URBAN RUNOFF FUND 272,433 272,433 35,001.37 14,110.88 .00 237,431.68 12.8% 231 BLACKWELL DISTRICT
5H CONTRACTS 1,484 1,484 93.00 93.00 1,023.00 368.00 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 93.00 93.00 1,023.00 2,428.00 31.5% 232 KENNEDY MEADOWS DISTRICT
5H CONTRACTS 8,385 8,385 609.00 609.00 6,699.00 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 12,695 609.00 609.00 6,699.00 5,387.00 57.6% 233 GEMINI COURT DISTRICT
5H CONTRACTS 1,018 1,018 46.00 46.00 506.00 466.00 54.2% 5P TRANSFERS OUT 610 610 .00 .00 .00 610.00 .0%
TOTAL GEMINI COURT DISTRICT 1,628 1,628 46.00 46.00 506.00 1,076.00 33.9% 234 SANTA ROSA HEIGHTS DISTRICT
5H CONTRACTS 7,427 7,427 559.00 559.00 6,149.00 719.00 90.3% 5P TRANSFERS OUT 660 660 .00 .00 .00 660.00 .0%
TOTAL SANTA ROSA HEIGHTS DISTRICT 8,087 8,087 559.00 559.00 6,149.00 1,379.00 82.9% 235 VASONA HEIGHTS DISTRICT

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT EXPENDITURES
Report generated: 10/06/2026 18:37
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

ORIGINAL REVISED AVAILABLE PCT
235 VASONA HEIGHTS DISTRICT APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 5H CONTRACTS 5,138 5,138 375.00 375.00 4,125.00 638.05 87.6% 5I UTILITIES 2,389 2,389 258.42 258.42 .00 2,130.15 10.8% 5P TRANSFERS OUT 1,430 1,430 .00 .00 .00 1,430.00 .0%
TOTAL VASONA HEIGHTS DISTRICT 8,957 8,957 633.42 633.42 4,125.00 4,198.20 53.1% 236 HILLBROOK DISTRICT
5H CONTRACTS 2,055 2,055 140.00 140.00 1,540.00 375.40 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 5,578 140.00 140.00 1,540.00 3,897.52 30.1% 251 LOS GATOS THEATRE
5H CONTRACTS 15,696 15,696 650.00 650.00 9,350.00 5,696.00 63.7% 5I UTILITIES 67,223 67,223 7,407.85 7,188.11 .00 59,814.99 11.0% TOTAL LOS GATOS THEATRE 82,919 82,919 8,057.85 7,838.11 9,350.00 65,510.99 21.0% 261 LIBRARY TRUST DONATIONS
5H CONTRACTS 37,000 37,000 5,711.10 2,240.06 .00 31,288.90 15.4% 5L MISCELLANEOUS 35,000 35,000 .00 .00 .00 35,000.00 .0% TOTAL LIBRARY TRUST DONATIONS 72,000 72,000 5,711.10 2,240.06 .00 66,288.90 7.9% 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

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT EXPENDITURES
Report generated: 10/06/2026 18:37
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

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 1,010,003.00 919,634.84 -808,404.69 3,611,274.56 5.3% 5P TRANSFERS OUT 441,491 441,491 .00 .00 .00 441,491.00 .0% TOTAL CAPITAL PROJECTS FUND 4,254,364 4,254,364 1,010,003.00 919,634.84 -808,404.69 4,052,765.56 4.7% 412 COMMUNITY CENTER DEVELOPMENT
5O CAPITAL PROJECTS 0 0 .00 .00 228,390.00 -228,390.00 100.0% TOTAL COMMUNITY CENTER DEVELOPMEN 0 0 .00 .00 228,390.00 -228,390.00 100.0% 421 GRANT FUNDED PROJECTS
5O CAPITAL PROJECTS 36,750 36,750 162,248.38 162,248.38 -162,248.38 36,750.00 .0% TOTAL GRANT FUNDED PROJECTS 36,750 36,750 162,248.38 162,248.38 -162,248.38 36,750.00 .0% 461 STORM BASIN 1
5O CAPITAL PROJECTS 0 0 12,698.75 12,698.75 -12,698.75 .00 .0% TOTAL STORM BASIN 1 0 0 12,698.75 12,698.75 -12,698.75 .00 .0% 462 STORM BASIN 2
5O CAPITAL PROJECTS 130,000 130,000 77,279.80 77,279.80 150,538.20 -97,818.00 175.2% TOTAL STORM BASIN 2 130,000 130,000 77,279.80 77,279.80 150,538.20 -97,818.00 175.2% 471 TRAFFIC MITIGATION FUND

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT EXPENDITURES
Report generated: 10/06/2026 18:37
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

ORIGINAL REVISED AVAILABLE PCT
471 TRAFFIC MITIGATION FUND APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 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 1,527,563.94 1,527,356.45 666,665.76 -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 1,527,563.94 1,527,356.45 666,665.76 -170,422.70 108.4% 611 GENERAL LIABILITY FUND
5H CONTRACTS 1,416,500 1,416,500 1,261,496.00 3,627.00 .00 155,004.00 89.1% TOTAL GENERAL LIABILITY FUND 1,416,500 1,416,500 1,261,496.00 3,627.00 .00 155,004.00 89.1% 612 WORKERS COMPENSATION FUND
5H CONTRACTS 1,762,379 1,762,379 621,631.68 35,953.31 48,267.33 1,092,479.99 38.0% TOTAL WORKERS COMPENSATION FUND 1,762,379 1,762,379 621,631.68 35,953.31 48,267.33 1,092,479.99 38.0% 621 INFORMATION TECHNOLOGY
5G MATERIALS & SUPPLIES 336,520 336,520 28,424.32 28,207.04 61,697.28 246,398.40 26.8% 5H CONTRACTS 956,742 956,742 579,018.37 30,612.49 167,910.96 209,812.27 78.1% 5I UTILITIES 20,460 20,460 4,077.73 1,830.02 .00 16,382.27 19.9% TOTAL INFORMATION TECHNOLOGY 1,313,722 1,313,722 611,520.42 60,649.55 229,608.24 472,592.94 64.0% 631 EQUIPMENT REPLACEMENT FUND

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT EXPENDITURES
Report generated: 10/06/2026 18:37
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

ORIGINAL REVISED AVAILABLE PCT
631 EQUIPMENT REPLACEMENT FUND APPROP BUDGET YTD EXPENDED MTD EXPENDED ENCUMBRANCES BUDGET USED 5O CAPITAL PROJECTS 338,843 354,292 15,448.20 .00 -15,448.20 354,291.97 .0% TOTAL EQUIPMENT REPLACEMENT FUND 338,843 354,292 15,448.20 .00 -15,448.20 354,291.97 .0% 633 FACILITIES MAINTENANCE FUND
5G MATERIALS & SUPPLIES 78,794 78,794 5,627.50 2,709.65 6,800.16 66,366.64 15.8% 5H CONTRACTS 628,835 628,835 59,791.93 26,904.04 432,804.58 136,238.92 78.3% 5I UTILITIES 733,314 733,314 108,423.23 61,621.01 .00 624,890.77 14.8% 5L MISCELLANEOUS 335,083 335,083 .00 .00 .00 335,083.00 .0% TOTAL FACILITIES MAINTENANCE FUND 1,776,027 1,776,027 173,842.66 91,234.70 439,604.74 1,162,579.33 34.5% 942 SA TRUST FUND
5A SALARIES 1,247 1,247 167.46 102.05 .00 1,079.56 13.4% 5B OVERTIME 0 0 7.56 4.23 .00 -7.56 100.0%
5C PERS 395 395 58.08 31.02 .00 337.37 14.7%
5E OTHER BENEFITS 120 120 17.27 9.65 .00 102.48 14.4%
5H CONTRACTS 5,395 5,395 3,520.00 1,760.00 .00 1,875.00 65.2% 5L MISCELLANEOUS 120,823 120,823 .00 .00 .00 120,823.01 .0% 5M INT SERVICE CHARGES 64 64 9.73 4.90 .00 53.97 15.3%
5N DEBT SERVICE 3,810,001 3,810,001 1,784,212.50 12,875.00 .00 2,025,788.50 46.8% TOTAL SA TRUST FUND 3,938,045 3,938,045 1,787,992.60 14,786.85 .00 2,150,052.33 45.4% GRAND TOTAL 84,944,559 85,898,814 14,527,639.76 7,025,981.44 3,634,084.39 67,737,090.18 21.1% ** END OF REPORT - Generated by Kristina Alfaro **

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 10/06/2026 18:44
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

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 5,688,479.90 6,885,831.77 57,378,606.10 9.0% 121 MEASURE G FUND 1,358,000 1,358,000 .00 130,353.79 1,358,000.00 .0% 222 URBAN RUNOFF FUND 315,072 315,072 26,255.91 26,255.91 288,816.09 8.3% 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 45,249.72 30,081.72 75,850.28 37.4% 261 LIBRARY TRUST DONATIONS 71,000 71,000 75,000.00 75,000.00 -4,000.00 105.6% 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 19,056.00 10,440.00 1,244,816.87 1.5% 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 12,619.19 .00 24,130.81 34.3% 461 STORM BASIN 1 70,337 70,337 14,370.00 14,370.00 55,966.92 20.4% 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 1,919,278 173,118.24 173,118.24 1,746,159.86 9.0% 611 GENERAL LIABILITY FUND 1,984,001 1,984,001 .00 .00 1,984,000.73 .0% 612 WORKERS COMPENSATION FUND 1,997,508 1,997,508 104,508.61 94,488.59 1,892,999.79 5.2% 621 INFORMATION TECHNOLOGY 1,313,722 1,313,722 19,519.80 10,785.26 1,294,201.80 1.5% 631 EQUIPMENT REPLACEMENT FUND 679,960 679,960 14,960.41 .00 664,999.59 2.2% 633 FACILITIES MAINTENANCE FUND 2,286,974 2,286,974 52,089.02 2,083.33 2,234,884.58 2.3% 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 6,245,226.80 7,452,808.61 77,771,191.92 7.4% ** END OF REPORT - Generated by Kristina Alfaro **
ATTACHMENT 3

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 10/06/2026 18:43
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

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 79,737.79 79,737.79 28,145,103.21 .3% 4B SALES & USE TAX 8,380,517 8,380,517 .00 1,422,455.17 8,380,517.00 .0% 4D TRANSIENT OCCUPANCY 2,278,360 2,278,360 -272,264.36 150,971.98 2,550,624.36 -12.0% 4E BUSINESS LIC & OTHER 2,686,760 2,686,760 35,931.78 35,931.78 2,650,828.22 1.3% 4F FRANCHISE FEES 1,089,210 1,089,210 .00 100,337.85 1,089,210.00 .0% 4G FINES & FORFEITURES 315,200 315,200 60,532.71 54,444.42 254,667.29 19.2% 4H LICENSES & PERMITS 7,802,811 7,802,811 952,074.98 678,148.95 6,850,736.02 12.2% 4I TOWN SERVICES 3,906,037 3,906,037 319,190.56 162,057.97 3,586,846.44 8.2% 4J OTHER SOURCES 2,630,318 2,630,318 3,829,333.33 4,034,860.63 -1,199,015.33 145.6% 4K INTERGOVERNMENTAL 741,477 741,477 533,324.11 147,212.23 208,152.89 71.9% 4L PASS THRU 2,534,469 2,534,469 150,619.00 19,673.00 2,383,850.00 5.9% 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 5,688,479.90 6,885,831.77 57,378,606.10 9.0% 121 MEASURE G FUND
4C MEASURE G 1,358,000 1,358,000 .00 130,353.79 1,358,000.00 .0% TOTAL MEASURE G FUND 1,358,000 1,358,000 .00 130,353.79 1,358,000.00 .0% 222 URBAN RUNOFF FUND
4H LICENSES & PERMITS 315,072 315,072 26,255.91 26,255.91 288,816.09 8.3% TOTAL URBAN RUNOFF FUND 315,072 315,072 26,255.91 26,255.91 288,816.09 8.3% 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. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 10/06/2026 18:43
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

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

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 10/06/2026 18:43
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

ORIGINAL REVISED ACTUAL YTD ACTUAL MTD REMAINING PCT

ESTIM REV EST REV REVENUE REVENUE REVENUE COLL
4J OTHER SOURCES 121,100 121,100 45,249.72 30,081.72 75,850.28 37.4% TOTAL LOS GATOS THEATRE 121,100 121,100 45,249.72 30,081.72 75,850.28 37.4% 261 LIBRARY TRUST DONATIONS
4J OTHER SOURCES 71,000 71,000 75,000.00 75,000.00 -4,000.00 105.6% TOTAL LIBRARY TRUST DONATIONS 71,000 71,000 75,000.00 75,000.00 -4,000.00 105.6% 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 19,056.00 10,440.00 86,944.00 18.0% 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 19,056.00 10,440.00 1,244,816.87 1.5%

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 10/06/2026 18:43
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

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 12,619.19 .00 24,130.81 34.3% TOTAL GRANT FUNDED PROJECTS 36,750 36,750 12,619.19 .00 24,130.81 34.3% 461 STORM BASIN 1
4H LICENSES & PERMITS 48,695 48,695 14,370.00 14,370.00 34,325.31 29.5% 4J OTHER SOURCES 21,642 21,642 .00 .00 21,641.61 .0%
TOTAL STORM BASIN 1 70,337 70,337 14,370.00 14,370.00 55,966.92 20.4% 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

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 10/06/2026 18:43
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

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 1,917,807 173,118.24 173,118.24 1,744,688.76 9.0% TOTAL GAS TAX FUND 1,919,278 1,919,278 173,118.24 173,118.24 1,746,159.86 9.0% 611 GENERAL LIABILITY FUND
4I TOWN SERVICES 1,984,001 1,984,001 .00 .00 1,984,000.73 .0% TOTAL GENERAL 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 0 104,508.61 94,488.59 -104,508.61 100.0% TOTAL WORKERS COMPENSATION FUND 1,997,508 1,997,508 104,508.61 94,488.59 1,892,999.79 5.2% 621 INFORMATION TECHNOLOGY
4I TOWN SERVICES 1,313,722 1,313,722 19,519.80 10,785.26 1,294,201.80 1.5%

ITEM NO. 3.

Town of Los Gatos ~CA 55122~

YEAR-TO-DATE BUDGET REPORT REVENUE
Report generated: 10/06/2026 18:43
User: kalfaro
Program ID: glytdbud

BY FUND AND CATEGORY
FOR 2027 02

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 19,519.80 10,785.26 1,294,201.80 1.5% 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 .00 5,039.59 74.8% TOTAL EQUIPMENT REPLACEMENT FUND 679,960 679,960 14,960.41 .00 664,999.59 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 52,089.02 2,083.33 164,051.58 24.1% 4M TRANSFERS IN 811,334 811,334 .00 .00 811,334.00 .0%
TOTAL FACILITIES MAINTENANCE FUND 2,286,974 2,286,974 52,089.02 2,083.33 2,234,884.58 2.3% 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 6,245,226.80 7,452,808.61 77,771,191.92 7.4% ** END OF REPORT - Generated by Kristina Alfaro **

ITEM NO. 3.
1 ATTACHMENT 5

TOWN OF LOS GATOS
MONTHLY FINANCIAL REPORT – AUGUST 2026
The following is the August 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 Adopted 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 was adopted at $67,468,582 with estimated revenues of $64,815,087, resulting in an estimated use of unassigned fund balance $2,653,495. This is 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 August 2026, $954,255 in budget revisions/transfers have occurred. All increases are the result of the year-end carryover process. The General Fund has the largest portion of the carryovers with $938,807 and $15,449 in the Equipment Replacement Fund. More detail is provided in the table below.

BUDGET TRANSFERS AND ADJUSTMENT TO DATE
Fund Department Category Amount1 Description
General Townwide Contracts $5,000 Prior year encumbered funds for ongoing services
Emergency
Preparedness
Contracts $905,624 Dedicated allocation for
emergency preparedness
and response. Carryovers
each year until fully spent
Police
Administration
Contracts $22,923 Prior year encumbered
funds for ongoing services
Town
Engineering
Contract 5,260 Prior year encumbered
funds for ongoing services
TOTAL GENERAL FUND ADJ AND TRANSFERS $938,807
Internal
Service Funds
Parks and
Public Works
Capital
Projects
$15,449 Prior year encumbered
funds for a speed trailer
purchase

TOTAL BUDGET TRANSFERS AND ADJUSTMENTS

ALL FUNDS
$954,255

1 Totals may vary due to rounding.

ITEM NO. 3.
2 ATTACHMENT 5
To date the only remaining carryovers are for capital projects and those should be completed with the September 2026 or first quarter reporting. This is resulting in over budget percentages in the following Capital Funds, 462 and 481, this over budget should normalize once the remaining carryovers are completed.

In this report the General Fund is shown as a combination of three funds 111, 121 and 732.

Attached system reports show these funds separately.

Revenue by Fund Type Trend Analysis
Overall revenues across all funds as of August are 7.4% collected and trending within the same period in prior years. Prior years ranged from 5.2% to 9.4% collected as a percent of the revised budget for August.

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 9.9% 7.6% 7.0% 16.7% 8.8%
2* SPECIAL REVENUE FUNDS 7.7% 38.5% 28.3% 16.7% 26.4%
4* CAPITAL FUNDS 10.4% 1.0% 2.0% 16.7% 3.4%
6* INTERNAL SERVICE FUNDS 7.0% 1.5% 1.9% 16.7% 2.3%
9* TRUST FUND 0.0% 0.0% 0.0% 16.7% 0.0%
TOTAL REVENUE BY FUND 9.4% 5.2% 5.4% 16.7% 7.4%
Expenditures by Fund Type Trend Analysis
Expenditures and encumbrances are 21.1% as of August and trending below the same period in the prior three years, which have ranged from 21.6% to 26.7% expended as a percent of the revised budget for August.

FUND FUND TYPE
FY2023-24 FY2024-25 FY2025-26

STRAIGHT
LINE
FY2026-27
ON
TREND %
EXP
%
EXP
%
EXP
%
EXP
111/
121/732 GENERAL FUND 19.1% 16.9% 17.6% 16.7% 14.7%
2* SPECIAL REVENUE
FUNDS 19.0% 11.4% 14.2% 16.7% 16.9%
4* CAPITAL FUNDS 19.8% 34.4% 29.4% 16.7% 44.2%
6*

INTERNAL SERVICE
FUNDS 44.3% 48.2% 39.7% 16.7% 51.1%
9* TRUST FUND 44.0% 44.9% 45.7% 16.7% 45.4%
TOTAL EXPENDITURE BY FUND TYPE 21.6% 26.7% 23.8% 16.7% 21.1%

ITEM NO. 3.
3 ATTACHMENT 5
General Fund actual expenditures and encumbrances are 14.7% and trending below the prior years, which have ranged from 16.9% to 19.1% expended as a percent of the revised budget for August. This is due to a variety of variances across multiple expense categories. See the General Fund by category for details.

Capital Funds actual expenditures and encumbrances are 44.2% and trending above the prior years, which have ranged from 19.8% to 34.4% expended as a percent of the revised budget for August. This is due to the year-end carryover budget process for capital funds not being completed. Once the carryover budget is brought into the current year this fund category should stabilize.

Internal Service Funds actual expenditures and encumbered funds are 51.1% and trending above the same point in the prior three years. Prior years ranged from 39.7% to 48.2% expended as a percent of the revised budget for August. Expenditures are trending above the three-year August average, primarily due to changes in insurance costs, expenditure timing, encumbrances, and fluctuations in budgeted expenditures.

General Fund Revenue by Category Trend Analysis
Overall General Fund revenues across all categories as of August are 8.8% collected and are within the same period in prior years. Prior years ranged from 7.0% to 9.9% collected as a percent of the revised budget for August.

CATEGORY FY 2023-24
% COLL
FY 2024-25
% COLL
FY 2025-26
% COLL

STRAIGHT
LINE
FY 2026-27
% COLL TREND
PROPERTY TAX 0.3% 0.1% 0.1% 16.7% 0.3%
SALES & USE TAX 0.0% 0.0% 0.0% 16.7% 0.0%
MEASURE G 0.0% 0.0% 0.0% 16.7% 0.0%

TRANSIENT
OCCUPANCY 4.6% 7.5% 3.5% 16.7% -12.0%
BUSINESS LIC & OTHER 0.9% 1.1% 1.6% 16.7% 1.3%
FRANCHISE FEES 4.7% 0.0% 0.0% 16.7% 0.0%
FINES & FORFEITURES 25.4% 10.1% 19.2% 16.7% 19.2%
LICENSES & PERMITS 23.9% 18.5% 19.6% 16.7% 12.2%
TOWN SERVICES 16.5% 17.7% 23.5% 16.7% 8.2%
OTHER SOURCES 85.9% -8.0% -54.2% 16.7% 126.8%
INTERGOVERNMENTAL -15.7% 33.7% 29.6% 16.7% 71.9%
PASS THRU 96.7% 116.4% 97.8% 16.7% 5.9%
TRANSFERS IN 21.3% 0.0% 0.0% 16.7% 0.0%
DEBT SERVICE REMIB 0.0% 0.0% 0.0% 16.7% 0.0%
GENERAL FUND %

COLLECTED BY

CATEGORY

9.9% 7.6% 7.0% 16.7% 8.8%

ITEM NO. 3.
4 ATTACHMENT 5
Transient Occupancy Tax actual revenues collected are -12.00% and are trending below the same point in the prior years. Prior years ranged from 3.5% to 7.5% collected as a percent of the revised budget for August. This is primarily due to the year-end accrual process, and we expect revenues to normalize as part of the September reporting period.

Licenses and Permits actual revenues collected are 12.2% and trending below the same point in the prior three years. Prior years ranged from 18.5% to 24% collected as a percent of the revised budget for August. This is primarily due to delays in carrying over prior year revenue into this category and a delay in accounting for revenues received in the Town’s planning software to the ERP. These are expected to resolve with September reporting.

Town Services actual revenues collected are 8.2% and trending below the same point in the prior three years. Prior years ranged from 16.5% to 23.5% collected as a percent of the revised budget for August. This is due to a delay in accounting for revenues received in the Town’s planning software to the ERP and a payment timing issue with the Monte Sereno police services payment, these payments normally post in the month they are received but a quarterly versus monthly payment was received this year. The system delay is expected to improve with September reporting.

Other Sources actual revenues collected are 126.8% and trending above the same point in the prior three years. Prior years ranged from -54.2% to 85.9% collected as a percent of the revised budget for August. This is due to the sale of the 4 Tait Property that was budgeted in the prior fiscal year.

Intergovernmental actual revenues collected are 71.9% and trending above the same point in the prior years. Prior years ranged from -15.7% to 33.7%, collected as a percent of the revised budget for August. This is due to a subsequent accrual reversal that is not reflected in the attached August report and is expected to reduce the reported percentage in the September reporting cycle.

Pass-Thru actual revenues collected are 5.9% and trending below the same point in the prior years. Prior years ranged from 96.7% to 116.4%, collected as a percent of the revised budget for August. 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 September reporting.

General Fund by Expense Category Analysis
Actual expenditures and encumbered funds are 14.7% and trending below for the same point in the prior years. Prior years ranged from 16.7 to 19.1% expended as a percent of the revised budget for August.

CATEGORY FY2023-24
% Exp
FY2024-25
% EXP
FY2025-26
% EXP

STRAIGHT
LINE
FY2026-27
% EXP ON TREND
SALARIES 13.4% 12.9% 13.1% 16.7% 12.5%
OVERTIME 25.4% 24.8% 20.4% 16.7% 12.7%

ITEM NO. 3.
5 ATTACHMENT 5
CATEGORY FY2023-24
% Exp
FY2024-25
% EXP
FY2025-26
% EXP

STRAIGHT
LINE
FY2026-27
% EXP ON TREND
PERS 13.3% 13.9% 13.2% 16.7% 13.3%
MEDICAL BENEFITS 14.0% 13.8% 13.6% 16.7% 14.6%
OTHER BENEFITS 13.3% 13.8% 12.5% 16.7% 13.0%

TOTAL SALARY AND
BENEFITS 13.7% 13.5% 13.2% 16.7% 12.9%
RETIREE MEDICAL 23.0% 25.3% 22.4% 16.7% 17.0%

MATERIALS &
SUPPLIES 20.6% 19.2% 26.9% 16.7% 31.6%
CONTRACTS 42.4% 38.9% 32.3% 16.7% 40.4%
UTILITIES 29.1% 25.6% 30.6% 16.7% 32.2%
GRANTS AND AWARDS 33.1% 0.1% 9.9% 16.7% 5.3%
PASS THRU 61.6% 57.0% 69.8% 16.7% 6.9%
MISCELLANEOUS -3.6% 0.0% 0.0% 16.7% 0.0%
INT SERVICE CHARGES 2.0% 4.8% 5.4% 16.7% 5.4%
DEBT SERVICE 0.0% 0.6% 0.6% 16.7% 0.6%
CAPITAL PROJECTS 0.0% 0.0% 0.0% 16.7% 0.0%
TRANSFERS OUT 0.0% 0.0% 0.0% 16.7% 0.0%

GENERAL FUND
TOTALS BY CATEGORY 19.1% 17.0% 17.6% 16.7% 14.7%
Salaries and benefit actual expenditures and encumbered funds are 12.9% and trending below the same point in the prior three years. Prior years ranged from 13.2% to 13.7% expended as a percent of the revised budget for August. 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 17.0% and trending below the same point in the prior three years. Prior years ranged from 22.4% to 25.3% expended as a percent of the revised budget for August. Payments made to date are tracking lower than in prior years. Staff will continue to monitor this category to see if the lower trend will normalize or continue and need to be adjusted.

Materials and Supplies actual expenditures and encumbered funds are 31.6% and trending above the same point in the prior three years. Prior years ranged from 19.2% to 26.9% expended as a percent of the revised budget for August. This is primarily due to the timing of purchases for Library Collections, that had been purchased earlier in the prior fiscal years.

Pass-thru actual expenditures and encumbered funds are 6.9% and trending below the same point in the prior three years. Prior years ranged from 57.0% to 69.8% expended as a percent of the revised budget for August. This is primarily due to prior years having significantly larger encumbrances in Parks and Public Works for Traffic Studies, GeoTech Review and Map Plan Check.

ITEM NO. 3.
6 ATTACHMENT 5
All Fund Vacancy Savings by Pay Period Analysis
The adopted budget includes a 4.6% vacancy-savings assumption totaling $2.0 million that is included in the salaries category only. This amount was calculated by applying 4.6% to the prevacancy salary-and-benefit base of $44,545,652. The revised salary-and-benefit budget shown below reflects the resulting vacancy-savings reduction
The payroll percentage column is derived by taking the total pay periods that have been paid in in the first two months of the fiscal year or 3.29 and dividing it by the total pay periods in a year or 26 to arrive at 12.7%. 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 2/12, resulting in a 16.7% 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 $3,017,927 $21,158,406 12.5% 12.7% 5B OVERTIME $1,457,000 $184,716 $1,272,284 12.7% 12.7%
5C PERS $10,800,788 $1,440,347 $9,360,441 13.3% 16.7%
5D MEDICAL BENEFITS $3,371,803 $491,181 $2,880,622 14.6% 16.7% 5E OTHER BENEFITS $2,922,678 $381,178 $2,541,500 13.0% 16.7% Total Salary and Benefits $42,728,602 $5,515,349 $37,213,253 12.9% 12.70% Salary and benefit expenditures are 12.9% of the revised budget as of August. Salaries are trending just below and overtime is trending at the 12.7% payroll-period benchmark, while PERS, Medical Benefits, and Other Benefits are below the 16.7% 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 August 2026 show that overall revenues are tracking within the range of prior years’ August results, while total expenditures and encumbrances are below the level observed at the same point in each of the prior fiscal years. General Fund expenditures are at

14.7% of the revised budget, including encumbrances, compared with the 16.7% straight-line benchmark. Salary and overtime expenditures are slightly below the payroll-period benchmark, while benefit categories remain below the 16.7% monthly benchmark.

ITEM NO. 3.

ATTACHMENT 6
GENERAL FUND HISTORICAL YTD AUGUST ACTUALS VS. REVISED BUDGET BY REVENUE CATEGORY (in millions)
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27

CATEGORY REVISED
BUDGET
YTD

ACTUALS
PCT
COLL

REVISED
BUDGET
YTD

ACTUALS
PCT
COLL

REVISED
BUDGET
YTD

ACTUALS
PCT
COLL

REVISED
BUDGET
YTD

ACTUALS
PCT
COLL
PROPERTY TAX $23.25 $0.07 0.3% $25.20 $0.02 0.1% $26.83 $0.02 0.1% $28.22 $0.08 0.3% SALES & USE TAX $7.88 $0.00 0.0% $6.60 $0.00 0.0% $6.64 $0.00 0.0% $8.38 $0.00 0.0% MEASURE G $1.28 $0.00 0.0% $1.29 $0.00 0.0% $1.30 $0.00 0.0% $1.36 $0.00 0.0%

TRANSIENT
OCCUPANCY $2.42 $0.11 4.6% $2.33 $0.18 7.5% $2.42 $0.09 3.5% $2.28 -$0.27 -12.0%

BUSINESS LIC &
OTHER $2.45 $0.02 0.9% $2.43 $0.03 1.1% $2.50 $0.04 1.6% $2.69 $0.04 1.3% FRANCHISE FEES $2.12 $0.10 4.7% $1.04 $0.00 0.0% $1.04 $0.00 0.0% $1.09 $0.00 0.0% FINES & FORFEITURES $0.20 $0.05 25.4% $0.32 $0.03 10.1% $0.32 $0.06 19.2% $0.32 $0.06 19.2% LICENSES & PERMITS $3.12 $0.75 23.9% $6.02 $1.11 18.5% $6.57 $1.29 19.6% $7.80 $0.95 12.2% TOWN SERVICES $3.34 $0.55 16.5% $3.39 $0.60 17.7% $4.11 $0.97 23.5% $3.91 $0.32 8.2% OTHER SOURCES $1.79 $1.53 85.9% $2.70 -$0.22 -8.0% $2.17 -$1.18 -54.2% $3.02 $3.83 126.8% INTERGOVERNMENTAL $0.89 -$0.14 -15.7% $1.01 $0.34 33.7% $1.08 $0.32 29.6% $0.74 $0.53 71.9% PASS THRU $2.18 $2.11 96.7% $1.88 $2.19 116.4% $2.65 $2.59 97.8% $2.53 $0.15 5.9% TRANSFERS IN $0.54 $0.11 21.3% $0.56 $0.00 0.0% $0.58 $0.00 0.0% $0.56 $0.00 0.0% DEBT SERVICE REMIB $1.90 $0.00 0.0% $1.91 $0.00 0.0% $1.91 $0.00 0.0% $1.91 $0.00 0.0% TOTAL $53.34 $5.27 9.9% $56.68 $4.28 7.6% $60.13 $4.19 7.0% $64.82 $5.69 8.8%

ITEM NO. 3.

ATTACHMENT 6
GENERAL FUND HISTORICAL YTD AUGUST ACTUALS VS. REVISED BUDGET BY EXPENDITURE CATEGORY (in millions)
FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27

CHARACTER
NAME

REVISED

BUDGET ACTUALS ENC
PCT
COLL

REVISED

BUDGET ACTUALS ENC
PCT
COLL

REVISED

BUDGET ACTUALS ENC
PCT
COLL

REVISED

BUDGET ACTUALS ENC
PCT
COLL
SALARIES $21.17 $2.85 $0.00 13.4% $23.28 $3.01 $0.00 12.9% $23.18 $3.03 $0.00 13.1% $24.18 $3.02 $0.00 12.5% OVERTIME $0.58 $0.15 $0.00 25.4% $0.60 $0.15 $0.00 24.8% $0.70 $0.14 $0.00 20.4% $1.46 $0.18 $0.00 12.7% PERS $8.63 $1.15 $0.00 13.3% $9.18 $1.27 $0.00 13.9% $10.30 $1.36 $0.00 13.2% $10.80 $1.44 $0.00 13.3%

MEDICAL
BENEFITS $2.72 $0.38 $0.00 14.0% $3.11 $0.43 $0.00 13.8% $3.38 $0.46 $0.00 13.6% $3.37 $0.49 $0.00 14.6% OTHER BENEFITS $1.99 $0.27 $0.00 13.3% $2.54 $0.35 $0.00 13.8% $2.88 $0.36 $0.00 12.5% $2.92 $0.38 $0.00 13.0%

RETIREE
MEDICAL $1.61 $0.37 $0.00 23.0% $1.70 $0.42 $0.01 25.3% $2.13 $0.47 $0.01 22.4% $2.19 $0.36 $0.01 17.0%

MATERIALS &
SUPPLIES $1.21 $0.10 $0.15 20.6% $1.24 $0.06 $0.17 19.2% $1.09 $0.08 $0.22 26.9% $1.16 $0.09 $0.27 31.6% CONTRACTS $5.44 $0.40 $1.90 42.4% $5.72 $0.38 $1.85 38.9% $6.90 $0.64 $1.59 32.3% $7.41 $0.73 $2.26 40.4% UTILITIES $0.81 $0.05 $0.18 29.1% $0.90 $0.07 $0.16 25.6% $0.91 $0.11 $0.16 30.5% $1.00 $0.17 $0.16 32.2%

GRANTS AND
AWARDS $0.69 $0.23 $0.00 33.1% $0.47 $0.00 $0.00 0.1% $0.28 $0.01 $0.02 9.9% $0.28 $0.00 $0.02 5.3% PASS THRU $3.88 $1.59 $0.80 61.6% $2.47 $0.04 $1.36 57.0% $2.77 $0.18 $1.75 69.8% $2.68 $0.06 $0.12 6.9% MISCELLANEOUS -$0.14 $0.01 $0.00 -3.6% -$0.04 $0.00 $0.00 0.0% -$0.04 $0.00 $0.00 0.0% $0.00 $0.00 $0.00 0.0%

INT SERVICE
CHARGES $3.36 $0.07 $0.00 2.0% $4.37 $0.21 $0.00 4.7% $4.89 $0.26 $0.00 5.4% $5.07 $0.27 $0.00 5.4% DEBT SERVICE $2.05 $0.00 $0.00 0.0% $2.06 $0.01 $0.00 0.6% $2.06 $0.01 $0.00 0.6% $2.06 $0.01 $0.00 0.6%

CAPITAL
PROJECTS $0.12 $0.00 $0.00 0.0% $0.07 $0.00 $0.00 0.0% $0.19 $0.00 $0.00 0.0% $0.02 $0.00 $0.00 0.0% TRANSFERS OUT $1.62 $0.00 $0.00 0.0% $1.11 $0.00 $0.00 0.0% $0.00 $0.00 $0.00 0.0% $3.81 $0.00 $0.00 0.0% TOTAL $55.74 $7.60 $3.03 19.1% $58.76 $6.40 $3.55 16.9% $61.62 $7.12 $3.74 17.6% $68.41 $7.22 $2.84 14.7%

ITEM NO. 3.

ATTACHMENT 6
ALL FUNDS HISTORICAL YTD AUGUST REVENUE ACTUALS VS. REVISED BUDGET (in millions)

FUND TYPE

REVISED
BUDGET
YTD

ACTUALS
PCT
COLL

REVISED
BUDGET
YTD

ACTUALS
PCT
COLL

REVISED
BUDGET
YTD

ACTUALS
PCT
COLL

REVISED
BUDGET
YTD

ACTUALS
PCT
COLL
1 - General $53.34 $5.27 9.9% $56.68 $4.28 7.6% $60.13 $4.19 7.0% $64.82 $5.69 8.8% 2 - Special Revenue $0.54 $0.04 7.7% $0.34 $0.13 38.5% $0.40 $0.11 28.3% $0.55 $0.15 26.4% 3 - Capital Project $23.92 $2.49 10.4% $23.47 $0.23 1.0% $16.44 $0.32 2.0% $6.46 $0.22 3.4% 4 -Internal Service $4.95 $0.35 7.0% $6.85 $0.10 1.5% $7.39 $0.14 1.9% $8.26 $0.19 2.3% 5 - Trust $3.81 $0.00 0.0% $3.83 $0.00 0.0% $3.92 $0.00 0.0% $3.92 $0.00 0.0% TOTAL $86.56 $8.14 9.4% $91.17 $4.74 5.2% $88.29 $4.77 5.4% $84.02 $6.25 7.4%

ITEM NO. 3.

ATTACHMENT 6
ALL FUNDS HISTORICAL YTD AUGUST EXPENDITURE ACTUALS VS. REVISED BUDGET Fund Type

REVISED

BUDGET ACTUALS ENC
PCT
COLL

REVISED

BUDGET ACTUALS ENC
PCT
COLL

REVISED

BUDGET ACTUALS ENC
PCT
COLL

REVISED

BUDGET ACTUALS ENC
PCT
COLL
1 - General $55.74 $7.60 $3.03 19.1% $58.76 $6.40 $3.55 16.9% $61.62 $7.12 $3.74 17.6% $68.41 $7.22 $2.84 14.7% 2 - Special
Revenue $0.46 $0.05 $0.04 19.0% $0.55 $0.04 $0.02 11.4% $0.47 $0.04 $0.02 14.2% $0.48 $0.05 $0.03 16.9% 3 - Capital
Project $45.07 $1.32 $7.59 19.8% $44.18 $0.01 $15.17 34.4% $28.40 $0.58 $7.77 29.4% $6.45 $2.79 $0.06 44.2% 4 -Internal
Service $6.26 $2.00 $0.78 44.3% $8.04 $2.82 $1.05 48.2% $8.90 $2.58 $0.95 39.7% $6.62 $2.68 $0.70 51.1% 5 - Trust $3.80 $1.67 $0.00 44.0% $3.82 $1.71 $0.00 44.9% $3.82 $1.74 $0.00 45.7% $3.94 $1.79 $0.00 45.4% TOTAL $111.33 $12.64 $11.44 21.6% $115.34 $10.98 $19.80 26.7% $103.20 $12.07 $12.48 23.8% $85.90 $14.53 $3.63 21.1%

ITEM NO. 3.

PREPARED BY: Kristina Alfaro
Administrative Services Director
Reviewed by: Town Manager
110 E. Main Street Los Gatos, CA 95030 ● (408)354-6832
www.losgatosca.gov

TOWN OF LOS GATOS

FINANCE COMMISSION REPORT
MEETING DATE: 10/12/2026
ITEM NO: 5
DATE: October 12, 2026
TO: Finance Commission
FROM: Kristina Alfaro, Administrative Services Director SUBJECT: Receive and Forward to the Town Council the Monthly Expenditure and Revenue Reports for the Month of August 2026
REMARKS:

Attachment 11 includes Commissioner communication received before 11:00 a.m. on Monday, October 12, 2026.

Staff responded to Commissioner communication as follows:

The report does its best to summarize variances at the fund level, when reviewing actuals expenditure trends across all ISF, I noted various expenditure and encumbrance fluctuations across funds and years that are not visible in the historical report thus an emphasis was not placed only on the lower budget. Although at a high level the lower budget would appear to be the major driver, looking more closely at a bit more detailed information (by fund and not just fund type) we tried to provide a more detailed response that was indicative of what we were seeing. In the future, we can provide the by fund not just fund type in the historical reports.

FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27
Fund Fund Name REV

BUD ACT ENC PCT USED
REV

BUD ACT ENC PCT
USED
REV

BUD ACT ENC PCT
USED
REV

BUD ACT ENC PCT USED
611 ABAG TOWN
LIABILITY FUND $1.2 $1.0 $0.0 85.9% $1.5 $1.3 $0.0 85.8% $1.8 $1.5 $0.0 83.5% $1.4 $1.3 $0.0 89.1% 612

WORKERS

COMPENSATION
FUND
$1.8 $0.5 $0.0 29.5% $1.8 $1.0 $0.1 56.5% $1.8 $0.6 $0.1 34.4% $1.8 $0.6 $0.0 38.0% 621 INFO TECH $1.0 $0.4 $0.2 61.7% $1.1 $0.4 $0.3 58.5% $1.6 $0.4 $0.2 35.3% $1.3 $0.6 $0.2 64.0% 631

EQUIPMENT

REPLACEMENT
FUND
$1.0 $0.0 $0.1 10.8% $2.1 $0.1 $0.5 24.2% $2.3 $0.0 $0.2 7.6% $0.4 $0.0 $0.0 0.0% 633

FACILITIES

MAINTENANCE
FUND
$1.3 $0.1 $0.4 40.2% $1.4 $0.1 $0.3 24.4% $1.4 $0.2 $0.5 48.9% $1.8 $0.2 $0.4 34.5% Grand Total $6.3 $2.0 $0.8 44.3% $8.0 $2.8 $1.1 48.2% $8.9 $2.6 $1.0 39.7% $6.6 $2.7 $0.7 51.1% ATTACHMENT 7

ITEM NO. 3.

PAGE 2 OF 2
SUBJECT: Receive and forward to the Town Council the monthly expenditure and revenue reports for the month of August 2026
DATE: October 12, 2026
Attachments Received with the Staff Report:

1. Expenditure Report by Fund for August 2026

2. Expenditure Report by Fund and Expense Category for August 2026

3. Expenditure Report by Fund and Department for August 2026

4. Expenditure Report by Fund, Department and Expenditure Category for August 2026

5. Revenue Report by Fund for August 2026

6. Revenue Report by Fund and Revenue Category for August 2026

7. Revenue Report by Fund and Department for August 2026

8. Revenue Report by Fund, Department and Revenue Category for August 2026

9. August 2026 Monthly Financial Report

10. Historical August Reports
Attachment included with this Desk Item:

11. Commissioner Communication

ITEM NO. 3.

Outlook
Monthly Financial Report
From Adam Fischer <
Date Sun 10/11/2026 7:35 PM
To Kristina Alfaro <[email protected]>
Cc Chris Constantin <[email protected]>
I [EXTERNAL SENDER]
Hi KristinaI want to reconcile two statements in the Monthly Financial Report. The overall expenditure analysis indicates that expenditures and encumbrances are trending below prior years (pg 77). However, the Internal Service Funds commentary (pg 78) says they're trending above historical levels, citing insurance costs, expenditure timing and encumbrances.

I understand these are different fund groupings, but when I look at the historical numbers for ISF specifically, actual expenditures and encumbrances have declined slightly year over year.

It appears the increase from 39. 7% to 51.12% utilization is primarily a result of the revised budget declining from $8.9M to $6.62M.

Can staff confirm that interpretation and explain why the narrative emphasizes expenditure trends rather than the reduction in the budget?
Thank you,
Adam
ATTACHMENT 11

ITEM NO. 3.

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

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 10/20/2026
ITEM NO: 4
DATE: October 20, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Receive the Monthly Financial and Investment Report for August 2026 RECOMMENDATION: Receive the Monthly Financial and Investment Report for August 2026.

FISCAL IMPACT:

This report has no fiscal impact.

STRATEGIC PRIORITY:

This item aligns with the Town’s Core Goals of Good Governance and Fiscal Stability by ensuring adherence to proper financial reporting guidelines and information.

BACKGROUND:

California Government Code Section 41004 requires that the Town Treasurer submit to the Town Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The Administrative Services Director assumes the Town Treasurer role. Attachment 1 contains the August 2026 monthly Financial and Investment Report, which fulfils this requirement.

The August 2026 Monthly Financial and Investment Report was received by the Finance Commission in the agenda packet for their October 12, 2026, regular meeting. The meeting could not be held because quorum was not reached.

DISCUSSION:

The August 2026 Monthly Financial and Investment Report includes a Fund Balance Schedule,

ITEM NO. 4.

PAGE 2 OF 3
SUBJECT: Monthly Financial and Investment Report for August 2026 DATE: October 20, 2026
representing estimated funding available for all funds at the beginning of the fiscal year and at the end of the respective month.

As operations fluctuate month to month, there are differences between balances in one month and balances in another. Such differences may be significant due to the type of activity in those months and the timing of any estimates used in the presentation, based on the information available. This is demonstrated by the attached August 31, 2026, fund balance report. In the case that the differences are extraordinary and unanticipated, we will ensure we present more information to explain the differences.

The difference between the August 31 and July 31 estimated fund balance is due to normal dayto-day fluctuations in revenues and expenditures.

The difference between the beginning fund balance in the August investment report and the ending fund balance in the June Investment report was an approximately $4.87 million dollar increase in total fund balance. The majority of the variance was caused by the accrual entry of the 2026 Q2 sales taxes of approximately $1.52 million, mark-to-market adjustment of approximately $0.56 million, June permit revenue reclassifications of approximately $0.53 million, and year-end reclassifications in the RDA Successor Agency fund of approximately $1.70 million. The remainder of the $0.56 million difference is a result of several small year-end entries.

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

As illustrated in the summary below, Ending Fund Balance = Cash + Assets – Liabilities. The resulting amount represents estimated accounting fund balance across Town funds and includes amounts that may be nonspendable, restricted, committed, or assigned.

As of August 31, 2026, the Town’s financial position (Cash Plus Other Assets $97.54M, Liabilities $23.40M, and Fund Equity $74.14M) remains strong, and the Town has sufficient funds to meet the cash demands for the next six months.

As of August 31, 2026, the Town’s weighted average yield to maturity for investments under

ITEM NO. 4.

PAGE 3 OF 3
SUBJECT: Monthly Financial and Investment Report for August 2026 DATE: October 20, 2026
management was 4.20%, which was 34 basis points above the Local Agency Investment Fund (LAIF) yield of 3.86% for the same reporting period. Currently, the LAIF portfolio’s weighted average maturity (WAM) is 272 days versus the Town’s longer WAM of 574 days. The Town’s assets under management reflect the Town’s selection of the 1-3 year benchmark investment strategy through the Town’s investment advisor to lock in higher yields at the top of the interest rate cycle. The longer maturities are balanced with shorter-term yields available on investments held with the State’s LAIF. The Town’s weighted average yield to maturity on investments under management of 4.20% at the close of August was consistent with the July 31, 2026 report.

Since August 2025, LAIF yields decreased from 425 basis points (4.25%) to 386 basis points (3.86%) through the end of August 2026. The State LAIF pool typically lags the market when current market yields are either increasing or decreasing.

The Federal Open Market Committee held steady rates for most of calendar year 2026. At its September meeting, the committee voted to raise rates 25 basis points to the range of 3.75%-

4.00%. This adjustment aligns with the FOMC's objective to promote maximum employment and achieve an inflation target of 2% over the long run.

Nonfarm payrolls declined by 23,000 in July, following an increase of 57,000 in June. The unemployment rate fell from 4.2% to 4.1%, but this improvement was mainly due to a reduction in the labor market participation rate. Job losses were concentrated in local government, education, and retail trade, partly offset by continued hiring in healthcare. Weekly jobless claims remained relatively subdued and stable during the month.

The Town's investments are in compliance with the Town's Investment Policy dated March 18, 2025, and as amended August 4, 2026, and are also in compliance with the requirements of Section 53600 et seq. of the California Government Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.

CONCLUSION:

Staff recommends that the Town Council receive the Monthly Financial and Investment Report for August 2026.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Financial and Investment Report (August 2026)

ITEM NO. 4.

Weighted Average YTM Portfolio Yield on Investments
under Management 4.20%
Weighted Average Maturity (days) 574
This Month Last Month One year ago
Portfolio Allocation & Treasurer's Cash Balances $80,075,730 $78,318,427 $69,644,461 Managed Investments $54,408,770
Local Agency Investment Fund $15,910,115
Reconciled Demand Deposit Balances $9,756,845
Portfolio Allocation & Treasurer's Cash Balances $80,075,730 Benchmarks/ References:

Town's Average Yield 4.20% 4.20% 4.34%
LAIF Yield for month 3.86% 3.84% 4.25%
3 mo. Treasury 3.83% 3.75% 4.14%
6 mo. Treasury 3.99% 3.94% 3.96%
2 yr. Treasury 4.34% 4.29% 3.62%
5 yr. Treasury 4.50% 4.45% 3.70%
10 Yr. Treasury 4.75% 4.73% 4.23%
Town of Los Gatos
Summary Investment Information
August 31, 2026
0 - 1 year
43%
1 - 2 years
20%
2 - 3 years
18%
3 - 5 years
19%
Portfolio Maturity Profile
Compliance: The Town's investments are in compliance with the Town's investment policy dated March 18, 2025, and as amended August 4, 2026, and also in compliance with the requirements of Section 53600 et seq. of the California Government Code. Based on the information available, the Town has sufficient funds to meet the cash demands for the next six months.

ATTACHMENT 1
1

ITEM NO. 4.

Month YTD
Cash & Investment Balances - Beginning of Month/Period $ 78,318,427.29 $ 90,859,940.45 Receipts 7,785,506.90 17,541,871.02
Disbursements (6,028,203.95) (28,326,081.23)
Cash & Investment Balances - End of Month/Period $80,075,730.24 $80,075,730.24 Portfolio Allocation Amount % of Portfolio
Max. % or $ Allowed
per State Law or Policy
BNY MM $219,116.16 0.31% 20% of Town Portfolio
US Treasury Notes $27,284,031.05 38.80% No Max. on US Treasuries Government Agency Debenture Notes $11,660,791.81 16.58% No Max. on Non-Mortgage Backed Corporate Medium Term Bonds $15,244,830.80 21.68% 30% of Town Portfolio Local Agency Investment Fund $15,910,114.99 22.63% $75 M per State Law Subtotal - Investments 70,318,884.81 100.00%
Reconciled Demand Deposit Balances 9,756,845.43
Total Portfolio Allocation & Treasurer's Cash Balances $80,075,730.24

0.0401

0.0388
Town of Los Gatos
Portfolio Allocation & Treasurer's Cash Balances
August 31, 2026
BNY MM

0.31%
US Treasury Notes

38.80%
Government Agency
Debenture Notes

16.58%
Corporate Medium Term
Bonds

21.68%
Local Agency Investment Fund

22.63%
Portfolio Investment Allocation
$69.6 M
$80.1 M
$0.0 M
$10.0 M
$20.0 M
$30.0 M
$40.0 M
$50.0 M
$60.0 M
$70.0 M
$80.0 M
$90.0 M
$100.0 M
Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 Aug-26 Treasurer's Fund Balances
2

ITEM NO. 4.

August 2026
August 2026 Interest/ August 2026
Beginning Deposits Unrealized Gains (Losses)/ Withdrawals / Ending Balance Realized Gain/Adj. Gains (Losses) Fees Balance
Non-Treasury Funds:

Cert. of Participation 2002 Ser A Reserve Fund $ 697,257.96 $ 16,254.21 $ 1,873.36 $ (29,134.53) $ 686,251.00 Note 1 Cert. of Participation 2010 Ser Lease Payment Fund 1,187,462.76 579.95 (1,187,462.50) $ 580.21 Note 2 Cert. of Participation 2002 Ser A Lease Payment Fund 580,495.79 45,388.74 272.21 (613,004.21) $ 13,152.53 Note 1 Cert. of Participation 2010 Ser Reserve Fund 1,330,534.40 - 3,999.17 - $ 1,334,533.57 Note 2 Total Restricted Funds: $ 3,795,750.91 $ 61,642.95 $ 6,724.69 $ (1,829,601.24) $ 2,034,517.31 CEPPT IRS Section 115 Trust 4,027,534.21 - 22,482.44 (792.81) $ 4,049,223.84 Note 3 Grand Total COPs and CEPPT Trust $ 7,823,285.12 $ 61,642.95 $ 29,207.13 $ (1,830,394.05) $ 6,083,741.15 These accounts are not part of the Treasurer's fund balances reported elsewhere in this report, as they are for separate and distinct entities.

Note 1: The Certificates of Participation (COP) 2002 Series A bond accounts include a reserve fund which will guarantee the lease payments, and a lease payment account for the disbursement to bond holders.

Note 2: The 2010 COP accounts include a reserve fund which guarantees lease payments, and a lease payment fund for the for the disbursement to bond holders.

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

Town of Los Gatos
Non-Treasury Restricted Fund Balances
August 31, 2026
3

ITEM NO. 4.

July 2026 $ 247,458.13
August 2026 $ 248,870.16
September 2026 $ -
October 2026 $ -
November 2026 $ -
December 2026 $ -
January 2027 $ -
February 2027 $ -
March 2027 $ -
April 2027 $ -
May 2027 $ -
June 2027 $ -
$ 496,328.29
Town of Los Gatos
Statement of Interest Earned
August 31, 2026
4

ITEM NO. 4.

Original Issue Market Value Maturity Yield to Interest Interest Interest Days to Deposit Par Original (Discount) Market Above (Under) Purchased Date or Maturity Received Earned Earned Maturity Institution CUSIP # Security Coupon Date Value Cost Premium Value Cost Interest Call Date or Call to Date Prior Yrs. Current FY or Call Apple 037833DB3 Corporate Bond 2.90% 12/20/2022 1,300,000.00 1,228,591.00 (71,409.00) 1,281,501.00 52,910.00 6/12/2027 4.19% $ 121,687.22 $ 189,288.22 $ 9,111.70 285 FFCB 3133EN5V8 Gov. Agency Debenture 4.13% 1/17/2023 236,000.00 239,174.20 3,174.20 236,151.04 (3,023.16) 1/11/2027 3.76% $ 33,910.25 $ 30,856.96 $ 1,518.36 133 FHLB 3130AQF65 Gov. Agency Debenture 1.25% 11/30/2022 1,300,000.00 1,160,559.40 (139,440.60) 1,289,171.00 128,611.60 12/21/2026 4.15% $ 57,822.92 $ 181,301.91 $ 8,593.82 112 FHLB 3130APJH9 Gov. Agency Debenture 1.00% 1/17/2023 1,000,000.00 907,010.00 (92,990.00) 997,780.00 90,770.00 10/28/2026 4.17% $ 33,354.17 $ 119,424.46 $ 5,876.44 58 FFCB 3133EN5N6 Gov. Agency Debenture 4.00% 2/8/2023 1,700,000.00 1,706,732.00 6,732.00 1,693,744.00 (12,988.00) 1/6/2028 3.91% $ 231,955.56 $ 225,992.90 $ 11,317.90 493 American Honda 02665WED9 Corporate Bond 4.70% 5/11/2023 600,000.00 608,856.00 8,856.00 600,582.00 (8,274.00) 1/12/2028 4.34% $ 89,378.33 $ 82,594.77 $ 4,468.48 499 US Treasury 91282CEF4 US Treasury Note 2.50% 6/9/2023 1,500,000.00 1,416,626.12 (83,373.88) 1,486,935.00 70,308.88 3/31/2027 4.09% $ 105,327.87 $ 181,711.12 $ 10,086.02 212 Colgate-Palmolive 194162AR4 Corporate Bond 4.60% 7/14/2023 500,000.00 504,655.00 4,655.00 501,845.00 (2,810.00) 2/1/2028 4.37% $ 60,502.79 $ 65,152.13 $ 3,733.30 519 FFCB 3133EPBM6 Gov. Agency Debenture 4.13% 7/14/2023 600,000.00 596,220.00 (3,780.00) 599,460.00 3,240.00 8/23/2027 4.29% $ 76,931.25 $ 76,093.32 $ 4,360.25 357 PNC Bank 69353RFJ2 Corporate Bond 3.25% 7/25/2023 1,000,000.00 921,490.00 (78,510.00) 982,970.00 61,480.00 12/23/2027 5.23% $ 97,229.17 $ 147,524.43 $ 8,540.16 479 US Treasury 91282CFU0 US Treasury Note 4.13% 7/31/2023 1,300,000.00 1,290,660.60 (9,339.40) 1,297,816.00 7,155.40 10/31/2027 4.31% $ 147,468.75 $ 162,872.14 $ 9,481.76 426 Toyota Motor Credit 89236TKL8 Corporate Bond 5.45% 8/25/2023 1,600,000.00 1,617,168.00 17,168.00 1,618,432.00 1,264.00 11/10/2027 5.16% $ 236,166.67 $ 236,851.22 $ 14,119.98 436 US Treasury 912810FE3 US Treasury Note 5.50% 10/3/2023 1,200,000.00 1,238,207.14 38,207.14 1,225,776.00 (12,431.14) 8/15/2028 4.76% $ 189,211.96 $ 159,492.42 $ 9,878.65 715 FFCB 3133EPUW3 Gov. Agency Debenture 4.75% 10/13/2023 1,000,000.00 994,338.00 (5,662.00) 1,000,000.00 5,662.00 9/1/2026 4.96% $ 113,208.33 $ 134,289.32 $ 8,401.55 1 US Treasury 91282CEW7 US Treasury Note 3.25% 10/16/2023 1,000,000.00 950,039.06 (49,960.94) 992,470.00 42,430.94 6/30/2027 4.73% $ 87,961.96 $ 124,455.54 $ 7,809.96 303 US Treasury 91282CEN7 US Treasury Note 2.75% 10/31/2023 1,300,000.00 1,214,336.39 (85,663.61) 1,288,586.00 74,249.61 4/30/2027 4.82% $ 89,375.00 $ 160,571.39 $ 10,231.68 242 US Treasury 91282CCH2 US Treasury Note 1.25% 12/21/2023 900,000.00 798,647.55 (101,352.45) 851,454.00 52,806.45 6/30/2028 3.99% $ 28,430.71 $ 84,949.54 $ 5,712.44 669 FNMA 3135G0Q22 Gov. Agency Debenture 1.88% 12/21/2023 900,000.00 845,676.00 (54,324.00) 898,785.00 53,109.00 9/24/2026 4.22% $ 38,109.38 $ 92,315.93 $ 6,207.80 24 US Treasury 91282CFB2 US Treasury Note 2.75% 1/2/2024 1,000,000.00 960,354.91 (39,645.09) 986,820.00 26,465.09 7/31/2027 3.95% $ 70,917.12 $ 96,185.71 $ 6,553.31 334 US Treasury 91282CHE4 US Treasury Note 3.63% 1/17/2024 1,800,000.00 1,775,185.72 (24,814.28) 1,778,346.00 3,160.28 5/31/2028 3.97% $ 154,567.63 $ 173,911.85 $ 12,047.52 639 JP Morgan Chase 46647PDG8 Corporate Bond 4.85% 2/1/2024 1,400,000.00 1,396,528.00 (3,472.00) 1,403,094.00 6,566.00 7/25/2027 4.93% $ 168,653.10 $ 166,143.66 $ 11,705.58 328 US Bancorp 91159HJF8 Corporate Bond 4.55% 2/5/2024 1,000,000.00 989,200.00 (10,800.00) 999,330.00 10,130.00 7/22/2027 4.89% $ 112,057.67 $ 116,642.74 $ 8,255.54 325 FFCB 3133EP5U5 Gov. Agency Debenture 4.13% 3/28/2024 1,700,000.00 1,687,981.00 (12,019.00) 1,687,964.00 (17.00) 3/20/2029 4.28% $ 138,691.67 $ 163,757.14 $ 12,321.53 932 US Treasury 9128285M8 US Treasury Note 3.13% 4/30/2024 1,200,000.00 1,123,832.14 (76,167.86) 1,168,692.00 44,859.86 11/15/2028 4.69% $ 76,545.34 $ 117,561.57 $ 9,214.69 807 Cisco Systems 17275RBR2 Corporate Bond 4.85% 5/15/2024 1,000,000.00 999,130.00 (870.00) 1,005,180.00 6,050.00 1/26/2029 4.87% $ 110,606.94 $ 103,505.53 $ 8,269.77 879 Home Depot 437076CW0 Corporate Bond 4.90% 5/17/2024 1,000,000.00 1,001,790.00 1,790.00 1,006,520.00 4,730.00 3/15/2029 4.86% $ 93,644.44 $ 103,121.00 $ 8,260.34 927 Treasury 91282CJR3 US Treasury Note 3.75% 5/31/2024 1,200,000.00 1,154,629.02 (45,370.98) 1,183,308.00 28,678.98 12/31/2028 4.68% $ 93,708.79 $ 114,284.87 $ 9,323.24 853 Citibank 17325FBK3 Corporate Bond 4.84% 8/15/2024 1,250,000.00 1,263,062.50 13,062.50 1,254,287.50 (8,775.00) 7/6/2029 4.60% $ 119,438.12 $ 108,325.83 $ 9,819.01 1040 FNMA 3135G05Y5 Gov. Agency Debenture 0.75% 9/10/2024 1,100,000.00 1,010,724.00 (89,276.00) 1,058,629.00 47,905.00 10/8/2027 3.56% $ 13,016.67 $ 67,182.14 $ 6,330.23 403 US Treasury 91282CFL0 US Treasury Note 3.88% 12/3/2024 1,100,000.00 1,088,144.31 (11,855.69) 1,082,730.00 (5,414.31) 9/30/2029 4.12% $ 56,442.99 $ 70,894.37 $ 7,657.58 1126 FHLB 3130ATUT2 Gov. Agency Debenture 4.50% 2/12/2025 505,000.00 508,253.21 3,253.21 505,505.00 (2,748.21) 12/14/2029 4.35% $ 30,426.25 $ 30,390.32 $ 3,745.92 1201 FFCB 3133ER5X5 Gov. Agency Debenture 3.88% 3/12/2025 1,000,000.00 998,480.00 (1,520.00) 992,940.00 (5,540.00) 3/7/2028 3.93% $ 38,211.81 $ 51,089.86 $ 6,668.57 554 Treasury 91282CJF9 US Treasury Note 4.88% 3/31/2025 1,100,000.00 1,130,167.75 30,167.75 1,111,253.00 (18,914.75) 10/31/2028 4.04% $ 58,069.06 $ 56,493.38 $ 7,681.12 792 Freddie Mac 3134HAW33 Gov. Agency Debenture 4.75% 4/30/2025 1,000,000.00 1,005,644.00 5,644.00 998,730.00 (6,914.00) 12/18/2029 4.23% $ 54,493.07 $ 54,018.19 $ 7,861.80 1205 US Treasury 91282CNG2 US Treasury Note 4.00% 6/30/2025 660,000.00 665,184.24 5,184.24 649,532.40 (15,651.84) 5/31/2030 3.82% $ 24,236.08 $ 25,346.41 $ 4,305.42 1369 US Treasury 91282CMG3 US Treasury Note 4.25% 8/4/2025 825,000.00 842,308.43 17,308.43 819,777.75 (22,530.68) 1/31/2030 3.74% $ 34,681.39 $ 28,219.67 $ 5,301.88 1249 US Treasury 91282CMA6 US Treasury Note 4.13% 8/25/2025 1,200,000.00 1,218,847.77 18,847.77 1,188,708.00 (30,139.77) 11/30/2029 3.72% $ 37,868.86 $ 38,167.38 $ 7,658.18 1187 US Treasury 91282CHR5 US Treasury Note 4.00% 9/23/2025 950,000.00 967,036.38 17,036.38 934,002.00 (33,034.38) 7/31/2030 3.59% $ 32,423.92 $ 26,458.71 $ 5,858.71 1430 US Treasury 91282CGQ8 US Treasury Note 4.00% 10/3/2025 1,000,000.00 1,013,362.72 13,362.72 985,660.00 (27,702.72) 2/28/2030 3.67% $ 36,353.59 $ 27,346.70 $ 6,279.61 1277 State Street Corp 857477DB6 Corporate Bond 4.83% 11/10/2025 580,000.00 596,535.80 16,535.80 580,678.60 (15,857.20) 3/24/2030 4.13% $ 12,772.51 $ 15,415.70 $ 4,119.71 1301 US Treasury 91282CKA8 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,157,775.34 7,775.34 1,150,701.50 (7,073.84) 2/15/2027 3.52% $ 31,453.12 $ 21,775.81 $ 6,923.59 168 US Treasury 91282CHW4 US Treasury Note 4.13% 12/17/2025 1,150,000.00 1,170,308.54 20,308.54 1,135,268.50 (35,040.04) 8/31/2030 3.71% $ 33,284.88 $ 23,038.22 $ 7,324.97 1461 US Treasury 91282CHZ7 US Treasury Note 4.63% 1/13/2026 1,050,000.00 1,089,087.89 39,087.89 1,055,701.50 (33,386.39) 9/30/2030 3.75% $ 10,272.84 $ 18,536.39 $ 6,840.81 1491 Morgan Stanley Pvt Bank 61776NU43 Corporate Bond 4.21% 2/26/2026 1,250,000.00 1,254,137.50 4,137.50 1,228,437.50 (25,700.00) 2/8/2029 4.09% $ 22,820.42 $ 17,414.89 $ 8,707.45 892 John Deere Capital Corp 24422EXN4 Corporate Bond 4.90% 3/17/2026 1,000,000.00 1,024,660.00 24,660.00 998,920.00 (25,740.00) 1,361.11 3/7/2031 4.34% $ (1,361.11) $ 12,670.06 $ 7,481.37 1649 US Treasury 91282CLC3 US Treasury Note 4.00% 4/6/2026 1,050,000.00 1,053,691.41 3,691.41 1,038,103.50 (15,587.91) 7/31/2029 3.88% $ 13,458.56 $ 9,521.94 $ 6,945.41 1065 US Treasury 91282CMB4 US Treasury Note 4.00% 4/6/2026 1,050,000.00 1,052,378.91 2,378.91 1,046,188.50 (6,190.41) 12/15/2027 3.86% $ 8,076.92 $ 9,453.63 $ 6,895.59 471 Bank of America 06051GMY2 Corporate Bond 4.48% 6/1/2026 1,250,000.00 1,244,325.00 (5,675.00) 1,235,075.00 (9,250.00) 5,907.15 4/23/2029 4.65% $ (5,907.15) $ 4,602.04 $ 9,838.83 966 US Treasury 91282CKN0 US Treasury Note 4.63% 6/15/2026 650,000.00 662,037.33 12,037.33 653,276.00 (8,761.33) 3,757.81 4/30/2031 4.20% $ (3,757.81) $ 1,134.01 $ 4,687.23 1703 US Treasury 91282CJG7 US Treasury Note 4.88% 6/15/2026 650,000.00 667,801.01 17,801.01 659,600.50 (8,200.51) 3,960.94 10/31/2030 4.18% $ (3,960.94) $ 1,135.24 $ 4,692.31 1522 US Treasury 91282CMW8 US Treasury Note 3.75% 6/15/2026 600,000.00 596,580.14 (3,419.86) 594,540.00 (2,040.14) 3,750.00 4/15/2028 4.07% $ (3,750.00) $ 1,001.22 $ 4,138.38 593 American Express Co 025816ET2 Corporate Bond 4.44% 7/17/2026 600,000.00 594,702.00 (5,298.00) 593,250.00 (1,452.00) 5,406.87 5/3/2029 4.78% $ (5,406.87) $ - $ 3,520.85 976 US Treasury 91282CJX0 US Treasury Note 4.00% 8/5/2026 1,000,000.00 986,800.23 (13,199.77) 980,230.00 (6,570.23) 543.48 1/31/2031 4.33% $ (543.48) $ - $ 3,058.58 1614 Subtotal $ 54,956,000.00 $ 54,189,653.66 $ (766,346.34) $ 54,594,437.79 $ 404,784.13 $ 24,687.36 $ 3,500,538.69 $ 4,330,483.88 $ 389,744.90 BNY MM Money Market 219,116.16 219,116.16 0.00 0.00% 1
LAIF State Investment Pool 15,910,114.99 15,892,174.46 (17,940.53) 3.86% 102,434.62 1 70,318,884.81 $70,705,728.41 $386,843.60 $24,687.36 $ 3,500,538.69 $ 4,330,483.88 $ 492,179.52 Matured Assets
FFCB 3133EPQC2 Gov. Agency Debenture 4.63% 7/17/2023 500,000.00 501,957.50 1,957.50 7/17/2026 4.48% $ 69,375.00 $ 66,434.16 $ 1,046.69 State Street Corp 857477CD3 Corporate Bond 5.27% 4/30/2025 800,000.00 811,184.00 11,184.00 8/3/2026 4.04% $ 53,071.47 $ 38,867.24 $ 3,102.08 Total Interest from Matured Investments $ 4,148.77
Total Interest FY 2025-26, Matured and Current $ 496,328.29 Maturity Profile Amount Percent
0-1 year $ 30,185,659.57 43%
1-2 years $14,119,765.06 20%
2-3 years $12,507,448.32 18%
3-5 years $ 13,506,011.86 19%
$70,318,884.81 100%
Town of Los Gatos
Investment Schedule
August 31, 2026
5

ITEM NO. 4.

Date Cusip/Id Description Transaction Type Trade Date Settlement Date Par Coupon Maturity Date Price Principal Interest Transaction
Total
8/3/2026 857477CD3
STATE STREET CORP 5.272% 03AUG2026
CALLABLE BOND INTEREST 8/3/2026 8/3/2026 800,000.00 0.000% 8/3/2026 - - 21,088.00 21,088.00 8/3/2026 857477CD3
STATE STREET CORP 5.272% 03AUG2026
CALLABLE REDEMPTION 8/3/2026 8/3/2026 800,000.00 0.000% 8/3/2026 100.00 800,000.00 - 800,000.00 8/5/2026 91282CJX0 USA TREASURY 4% 31JAN2031 PURCHASE 8/4/2026 8/5/2026 1,000,000.00 4.000% 1/31/2031 98.68 986,800.23 543.48 987,343.71 8/4/2026 Cash-USD Cash-USD

SHORT TERM INVESTMENT
FUND INCOME 8/4/2026 8/4/2026 296.19 0.000% 100.00 - - 296.19 8/6/2026 17325FBK3
CITIBANK NA 4.838% 06AUG2029
(CALLABLE 06JUL29) BOND INTEREST 8/6/2026 8/6/2026 1,250,000.00 4.838% 8/6/2029 - - 30,237.50 30,237.50 8/10/2026 61776NU43
MORGAN STANLEY PVT BANK 4.213%
08FEB2030 (CALLABLE 08FEB29) BOND INTEREST 8/8/2026 8/8/2026 1,250,000.00 4.213% 2/8/2030 - - 27,208.96 27,208.96 8/17/2026 912810FE3 USA TREASURY 5.5% 15AUG2028 BOND INTEREST 8/15/2026 8/15/2026 1,200,000.00 5.500% 8/15/2028 - - 33,000.00 33,000.00 8/17/2026 91282CKA8 USA TREASURY 4.125% 15FEB2027 BOND INTEREST 8/15/2026 8/15/2026 1,150,000.00 4.125% 2/15/2027 - - 23,718.75 23,718.75 8/24/2026 3133EPBM6
FEDERAL FARM CREDIT BANK 4.125%
23AUG2027 BOND INTEREST 8/23/2026 8/23/2026 600,000.00 4.125% 8/23/2027 - - 12,375.00 12,375.00 8/26/2026 17275RBR2
CISCO SYSTEMS INC 4.85% 26FEB2029
(CALLABLE 26JAN29) BOND INTEREST 8/26/2026 8/26/2026 1,000,000.00 4.850% 2/26/2029 - - 24,250.00 24,250.00 8/31/2026 91282CHW4 USA TREASURY 4.125% 31AUG2030 BOND INTEREST 8/31/2026 8/31/2026 1,150,000.00 4.125% 8/31/2030 - - 23,718.75 23,718.75 8/31/2026 91282CGQ8 USA TREASURY 4% 28FEB2030 BOND INTEREST 8/31/2026 8/31/2026 1,000,000.00 4.000% 2/28/2030 - - 20,000.00 20,000.00 Town of Los Gatos
Investment Transaction Detail
August 31, 2026
6

ITEM NO. 4.

CUSIP Security description Maturity
date Par/Shares Total market value ($) S&P rating Moody's rating Insight ESG
rating Environment Social Governance
025816ET2 AMERICAN EXPRESS CO 4.444% 03MAY2030 (CALLABLE 03MAY29) 5/3/2030 600,000 601,961 A- A2 3 1 3 4 02665WED9 AMERICAN HONDA FINANCE 4.7% 12JAN2028 1/12/2028 600,000 604,495 BBB+ A3 3 2 3 3 037833DB3 APPLE INC 2.9% 12SEP2027 (CALLABLE 12JUN27) 9/12/2027 1,300,000 1,299,438 AA+ Aaa 5 3 5 4 06051GMY2 BANK OF AMERICA CORP 4.477% 23APR2030 (CALLABLE 23APR29) 4/23/2030 1,250,000 1,255,237 A- A1 3 1 3 4 17275RBR2 CISCO SYSTEMS INC 4.85% 26FEB2029 (CALLABLE 26JAN29) 2/26/2029 1,000,000 1,006,042 AA- A1 3 1 3 3 17325FBK3 CITIBANK NA 4.838% 06AUG2029 (CALLABLE 06JUL29) 8/6/2029 1,250,000 1,258,754 A+ Aa3 3 1 2 5 194162AR4 COLGATE-PALMOLIVE CO 4.6% 01MAR2028 (CALLABLE 01FEB28) 3/1/2028 500,000 513,374 A+ Aa3 3 3 3 3 24422EXN4 JOHN DEERE CAPITAL CORP 4.9% 07MAR2031 3/7/2031 1,000,000 1,022,651 A A1 2 1 2 4 437076CW0 HOME DEPOT INC 4.9% 15APR2029 (CALLABLE 15MAR29) 4/15/2029 1,000,000 1,025,287 A A2 2 2 3 3 46647PDG8 JPMORGAN CHASE & CO 4.851% 25JUL2028 (CALLABLE 25JUL27) 7/25/2028 1,400,000 1,410,088 A A1 3 2 3 4 61776NU43 MORGAN STANLEY PVT BANK 4.213% 08FEB2030 (CALLABLE 08FEB29) 2/8/2030 1,250,000 1,232,032 A+ Aa3 3 1 3 5 69353RFJ2 PNC BANK NA 3.25% 22JAN2028 (CALLABLE 23DEC27) 1/22/2028 1,000,000 986,594 A A2 3 3 3 3 857477DB6 STATE STREET CORP 4.834% 24APR2030 (CALLABLE 24MAR30) 4/24/2030 580,000 590,672 A Aa3 1 1 2 2 89236TKL8 TOYOTA MOTOR CREDIT CORP 5.45% 10NOV2027 11/10/2027 1,600,000 1,645,350 A+ A1 1 1 2 4 91159HJF8 US BANCORP 4.548% 22JUL2028 (CALLABLE 22JUL27) 7/22/2028 1,000,000 1,004,257 A A3 3 2 3 4 Total Corporate / weighted average 15,330,000 15,456,232 3 2 3 4 ESG ratings are from 1 to 5, with 1 as the highest rating and 5 as the lowest. All ratings are weighted by industry rankings, based on the importance of the category within the individual industry.

TOWN OF LOS GATOS, CA
Insight ESG ratings as of August 31, 2026
7

ITEM NO. 4.

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

GENERAL FUND
Non-Spendable:

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

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

Budget Stabilization 7,870,639 - - - - - 7,870,639
Catastrophic 7,870,639 - - - - - 7,870,639
Pension/OPEB 1,300,000 - - - - - 1,300,000
Measure G District Sales Tax - - - - - - -
Assigned Fund Balances:

Open Space 410,000 - - - - - 410,000
Sustainability 140,553 - - - - - 140,553
Capital/Special Projects 1,983,271 - - - - - 1,983,271
Carryover Encumbrances 6,367 - - - - - 6,367
Compensated Absences 1,519,243 - - - - - 1,519,243
ERAF Risk Reserve - - - - - - -
Market Fluctuations 1,201,824 - - - - - 1,201,824
Council Priorities - Economic Recovery - - - - - - -
Unassigned Fund Balances:
111 Other Unassigned Fund Balance Reserve (Pre YE distribution) 18,480,465 (4,448,527) 7,156,843 (4,234,900) - - 16,953,881 General Fund Total 44,032,732 (4,448,527) 7,156,843 (4,234,900) - - 42,506,148 * Interfund transfers to be performed as part of the fiscal year end closing entries.

August 2026 Prior Year
Carryforward
7/1/2026*
Increase/
(Decrease)
July
Estimated Fund
Balance
8/31/2026*
8

ITEM NO. 4.

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

SPECIAL REVENUE
211/212 CDBG 166,653 - - - - - 166,653
222 Urban Runoff (NPDES) 665,021 (20,890) 26,256 (14,111) - - 656,276 231-236 Landscape & Lighting Districts 196,158 - - (2,080) - - 194,078 251 Los Gatos Theatre 568,006 14,948 30,082 (7,838) - - 605,198 261-264,269 Library Trusts 559,549 (3,471) 75,000 (2,240) - - 628,838 Special Revenue Total 2,155,387 (9,413) 131,338 (26,269) - - 2,251,043

CAPITAL PROJECTS
411 GFAR - General Fund Appropriated Reserve 16,084,985 (81,752) 10,440 (919,635) - - 15,094,038 412 Community Center Development 819,604 - - - - - 819,604 421 Grant Funded Projects 286,052 12,619 - (162,248) - - 136,423 461-463 Storm Basin Projects 2,985,906 - 14,370 (89,979) - - 2,910,297 471 Traffic Mitigation Projects 666,482 - - - - - 666,482 472 Utility Undergrounding Projects 3,794,440 - - - - - 3,794,440 481 Gas Tax Projects 2,857,185 (207) 173,118 (1,527,356) - - 1,502,740 Capital Projects Total 27,494,654 (69,340) 197,928 (2,699,218) - - 24,924,024

INTERNAL SERVICE FUNDS
611 Town General Liability 131,050 (1,257,869) - (3,627) - - (1,130,446) 612 Workers Compensation 2,026,390 (575,658) 94,489 (35,953) - - 1,509,268 621 Information Technology 2,157,187 (542,136) 10,785 (60,650) - - 1,565,186 631 Vehicle & Equipment Replacement 4,895,601 (488) - - - - 4,895,113 633 Facility Maintenance 813,454 (32,602) 2,083 (91,235) - - 691,700 Internal Service Funds Total 10,023,682 (2,408,753) 107,357 (191,465) - - 7,530,821 Trust/Agency
942 RDA Successor Agency (1,285,100) (1,773,206) - (14,787) - - (3,073,093) Trust/Agency Fund Total (1,285,100) (1,773,206) - (14,787) - - (3,073,093) Total Town 82,421,355 (8,709,239) 7,593,466 (7,166,639) - - 74,138,943 * Interfund transfers to be performed as part of the fiscal year end closing entries.

Deposit Accounts of Interest:
111-23541 General Plan Update deposit account balance $703,276.12 111-23521 BMP Housing deposit account balance $3,541,413.46 Prior Year
Carryforward
7/1/2026*
Increase/
(Decrease)
July
August 2026 Estimated Fund
Balance
8/31/2026*
9

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: 10/20/2026
ITEM NO: 5
DATE: October 9, 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 25, 2026, October 2, 2026, and October 9, 2026, and ratify and approve the Payroll Report dated October 2, 2026.

FISCAL IMPACT:

Approval and ratification of the reports will have no additional fiscal impact. The reports document $3,584,148.84 in payments previously issued, consisting of $2,615,178.84 in accounts payable payments and $968,970.00 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 Report DATE: October 20, 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 payroll reports to the Town Council for ratification and approval in accordance with the payroll presentation requirements described in the Background section. Staff also presents accounts payable check registers on the consent calendar for regular Town Council meetings to provide transparency and Council oversight.

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 25, 2026 $ 310,932.50
Accounts Payable October 2, 2026 $ 1,747,904.69
Accounts Payable October 9, 2026 $ 556,341.65
Payroll October 2, 2026 $ 968,970.00
Combined Accounts Payable
and Payroll Total
$ 3,584,148.84
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:

Staff requests Town Council ratification and approval of the Payroll Report dated October 2, 2026. 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 Report DATE: October 20, 2026
ENVIRONMENTAL ASSESSMENT:

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

ATTACHMENTS:

1. Accounts Payable Register for 09/25/26

2. Accounts Payable Register for 10/02/26

3. Accounts Payable Register for 10/09/26

4. Payroll by Location for 10/02/26

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 09-25-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163688 09/25/2026 AIRGAS INC 5527305327 SUPPLIES 1115402 61265 $ 109.12 163688 Total $ 109.12
163689 09/25/2026 AMAZON CAPITAL SERVICES INC 11WMXQGYL6LY CREDIT MEMO 1114201 61111 $ (87.34) 163689 09/25/2026 AMAZON CAPITAL SERVICES INC 1CG9FL6WV9VV SUPPLIES 1117204 61132 $ 95.82 163689 09/25/2026 AMAZON CAPITAL SERVICES INC 1F3T7D3J9YGK SUPPLIES 1117204 61132 $ 114.86 163689 09/25/2026 AMAZON CAPITAL SERVICES INC 1G4YKFXWG9LD SUPPLIES 1117204 61132 $ 137.28 163689 09/25/2026 AMAZON CAPITAL SERVICES INC 1P4DNKJFG49M SUPPLIES 1117201 61191 $ 93.95 163689 09/25/2026 AMAZON CAPITAL SERVICES INC 1RM67KDW43YJ SUPPLIES 4118733 82405 $ 142.47 163689 09/25/2026 AMAZON CAPITAL SERVICES INC 1TPQ9KNDVJ93 SUPPLIES 1114202 61175 $ 205.86 163689 09/25/2026 AMAZON CAPITAL SERVICES INC 1VGVHYLDQCLL SUPPLIES 1112201 64122 $ 593.00 163689 09/25/2026 AMAZON CAPITAL SERVICES INC 1WYK9C3KHCYG SUPPLIES 1117202 61192 $ 150.70 163689 09/25/2026 AMAZON CAPITAL SERVICES INC 1YVPDVXTLFGG SUPPLIES 1117201 61191 $ 137.45 163689 Total $ 1,584.05
163690 09/25/2026 AMAZON CAPITAL SERVICES INC 1G4YKFXWG3C4 SUPPLIES 2617301 62415 $ 54.90 163690 09/25/2026 AMAZON CAPITAL SERVICES INC 1HL4NVC7PXL7 SUPPLIES 1117101 61111 $ 43.46 163690 09/25/2026 AMAZON CAPITAL SERVICES INC 1MYQDVWT6KVD SUPPLIES 2617301 62421 $ 17.73 163690 09/25/2026 AMAZON CAPITAL SERVICES INC 1R7GJMQXJ4PD SUPPLIES 1117201 61191 $ 19.89 163690 09/25/2026 AMAZON CAPITAL SERVICES INC 1TPQ9KNDVFXQ SUPPLIES 1114202 61175 $ 66.79 163690 09/25/2026 AMAZON CAPITAL SERVICES INC 1TYNJK6GMC7T SUPPLIES 2617301 62424 $ 72.72 163690 09/25/2026 AMAZON CAPITAL SERVICES INC 1X43W69MKQTM SUPPLIES 1112106 62437 $ 61.44 163690 Total $ 336.93
163691 09/25/2026 ASSOCIATION OF BAY AREA GOVERNMENTS 1004063 FY 2026-2027 ABAG ANNUAL DUES 1111201 62152 $ 10,946.00 163691 Total $ 10,946.00
163692 09/25/2026 AT&T CALNET 3 000025621450 070126-073126 SERVICE 1114201 62622 $ 433.87 163692 09/25/2026 AT&T CALNET 3 000025715877 072026-081926 SERVICE 1114201 62622 $ 402.66 163692 Total $ 836.53
163693 09/25/2026 AT&T MOBILITY 18445X081026 070326-080226 SERVICE 1114301 62631 $ 2,446.27 163693 09/25/2026 AT&T MOBILITY 18445X081026 070326-080226 SERVICE 1114201 62622 $ 1,303.69 163693 09/25/2026 AT&T MOBILITY 18445X081026 070326-080226 SERVICE 1114201 63332 $ 253.85 163693 09/25/2026 AT&T MOBILITY 18445X091026 080326-090226 SERVICE 1114301 62631 $ 2,513.19 163693 09/25/2026 AT&T MOBILITY 18445X091026 080326-090226 SERVICE 1114201 62622 $ 1,335.68 163693 09/25/2026 AT&T MOBILITY 18445X091026 080326-090226 SERVICE 1114201 63332 $ 253.85 163693 Total $ 8,106.53
163694 09/25/2026 BAN SERVICES COMPANY INC 309581 PEST CONTROL SERVICES 6335423 62376 $ 223.00 163694 Total $ 223.00
163695 09/25/2026 BAY AREA AIR QUALITY MGMT DISTRICT T210354 FACILITY ID 19763 PERMIT TO OPERATE 100126-100127 6335423 62299 $ 628.00 163695 Total $ 628.00
163696 09/25/2026 BEAR ELECTRICAL SOLUTIONS, INC 12879 AUGUST 2026 USAS 1115202 63356 $ 770.00 163696 Total $ 770.00
163697 09/25/2026 BPS TACTICAL, INC 26031482 PATROL DUTY VEST COVER 1114301 61165 $ 920.54 163697 Total $ 920.54
163698 09/25/2026 CANNON DESIGN GROUP 202620 SERVICES THRU 083126 1113999 68412 $ 3,000.00 163698 09/25/2026 CANNON DESIGN GROUP 202621 SERVICES THRU 083126 1113999 68412 $ 3,000.00 163698 Total $ 6,000.00
Attachment 1

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 09-25-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163699 09/25/2026 CORELOGIC INFORMATION SOLUTIONS INC 30899096 080126-083126 PERIOD 6212502 63332 $ 117.63 163699 09/25/2026 CORELOGIC INFORMATION SOLUTIONS INC 30899105 080126-083126 PERIOD 6212502 63332 $ 454.33 163699 Total $ 571.96
163700 09/25/2026 CORODATA RECORDS MANAGEMENT INC RS3812495 080126-083126 STORAGE 1111201 62303 $ 155.32 163700 Total $ 155.32
163701 09/25/2026 CORODATA SHREDDING INC DN1598172 082526 SERVICE 1114201 62378 $ 134.39 163701 Total $ 134.39
163702 09/25/2026 COTTON, SHIRES AND ASSOCIATES INC 926006 15470 SANTELLA DRIVE 1115999 68612 $ 2,304.56 163702 Total $ 2,304.56
163703 09/25/2026 COUNTY OF SANTA CLARA 840 FY27 HHW CITY AUGMENTATION 1115302 63121 $ 77,563.50 163703 Total $ 77,563.50
163704 09/25/2026 CRIME SCENE CLEANERS, INC. 95309 SERVICE POLICE CAR 1 1114301 62392 $ 320.00 163704 09/25/2026 CRIME SCENE CLEANERS, INC. 97808 SERVICE POLICE CAR 16 1114301 62392 $ 160.00 163704 09/25/2026 CRIME SCENE CLEANERS, INC. 97953 CAR 4 SERVICE 1114301 62392 $ 160.00 163704 Total $ 640.00
163705 09/25/2026 DELL MARKETING LP 10890441049 DELL PRO 14 6212502 61133 $ 1,562.59 163705 Total $ 1,562.59
163706 09/25/2026 DISABILITY ACCESS CONSULTANTS LLC 26-289 AUGUST 2026 SERVICES 4118734 82303 $ 1,680.00 163706 Total $ 1,680.00
163707 09/25/2026 DIXON RESOURCES UNLIMITED 5312 AUGUST 2026 SERVICES 1115201 63264 $ 8,240.00 163707 Total $ 8,240.00
163708 09/25/2026 EMERGENCY LIGHTING EQUIPMENT SERVICE CO 215666 BATTERY 6335423 62371 $ 7,432.01 163708 Total $ 7,432.01
163709 09/25/2026 EWING IRRIGATION 31786784 SUPPLIES 1115301 61215 $ 662.49 163709 Total $ 662.49
163710 09/25/2026 FJM TRUCK & TRAILER CENTER LLC INV-00013797 SMOKE OPACITY TEST 1115402 62392 $ 200.00 163710 Total $ 200.00
163711 09/25/2026 FRANK AND GROSSMAN LANDSCAPE 42146 SEPTEMBER 2026 JANITORIAL SERVICES 6335423 63351 $ 16,278.75 163711 Total $ 16,278.75
163712 09/25/2026 FRONTIER CALIFORNIA INC 3540009-091226 091226-101126 SERVICE 6335423 62631 $ 394.78 163712 09/25/2026 FRONTIER CALIFORNIA INC 3564957-090426 090426-100326 SERVICE 1114201 62622 $ 125.81 163712 Total $ 520.59
163713 09/25/2026 GEORGIA J EATON 110158 AUGUST 2026 SERVICES 1115301 62376 $ 1,970.00 163713 Total $ 1,970.00
163714 09/25/2026 GLOBAL WATER TECHNOLOGY INC 202743 AUGUST 2026 SERVICES 6335423 61219 $ 459.43 163714 Total $ 459.43
163715 09/25/2026 GLOCK PROFESSIONAL INC TRP/100233391 091726 ARMORER COURSE T FLEMING 1114301 64111 $ 300.00 163715 Total $ 300.00
163716 09/25/2026 GRAINGER 9065007446 SUPPLIES 1115401 61275 $ 169.50 163716 09/25/2026 GRAINGER 9068182733 SUPPLIES 6335423 61214 $ 47.09 163716 Total $ 216.59
163717 09/25/2026 GREEN HALO SYSTEMS INC 6787 SEPTEMBER 2026 SERVICE 6212502 63332 $ 192.00 163717 Total $ 192.00
163718 09/25/2026 INGRAM LIBRARY SERVICE LLC 98970048 BOOKS 1117202 61192 $ 2,231.12

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 09-25-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163718 09/25/2026 INGRAM LIBRARY SERVICE LLC 98970048 BOOKS 1117201 61191 $ 4,658.04 163718 Total $ 6,889.16
163719 09/25/2026 JARVIS FAY LLP 22497 081326 SERVICE 1111301 63215 $ 276.50 163719 09/25/2026 JARVIS FAY LLP 22498 080326-081426 SERVICE 1111301 63215 $ 395.00 163719 09/25/2026 JARVIS FAY LLP 22499 083126 SERVICE 1111301 63215 $ 177.50 163719 Total $ 849.00
163720 09/25/2026 LC ACTION POLICE SUPPLY LTD 490688 SUPPLIES 1114301 61253 $ 654.66 163720 Total $ 654.66
163721 09/25/2026 LIEBERT CASSIDY WHITMORE 330825 SERVICES THROUGH 073126 1112201 63214 $ 1,154.00 163721 09/25/2026 LIEBERT CASSIDY WHITMORE 330826 SERVICES THROUGH 073126 1112201 63214 $ 49.00 163721 09/25/2026 LIEBERT CASSIDY WHITMORE 333115 SERVICES THROUGH 083126 1112201 63214 $ 2,943.00 163721 09/25/2026 LIEBERT CASSIDY WHITMORE 333116 SERVICES THROUGH 083126 1112201 63214 $ 2,200.50 163721 Total $ 6,346.50
163722 09/25/2026 LOS GATOS PUBLIC MEDIA INC DBA KCAT 103176 CABLECASTING PER CONTRACT 1111201 63311 $ 5,250.00 163722 09/25/2026 LOS GATOS PUBLIC MEDIA INC DBA KCAT 103177 AUGUST 2026 CABLECASTING 1111201 63311 $ 5,250.00 163722 Total $ 10,500.00
163723 09/25/2026 LOS GATOS SARATOGA DEPT OF 083126TOLG 080426 SERVICE 1112201 64433 $ 192.00 163723 Total $ 192.00
163724 09/25/2026 LWP CLAIMS SOLUTIONS INC 26826 SEPTEMBER 2026 CLAIMS ADMINISTRATION 6122202 65521 $ 5,025.58 163724 Total $ 5,025.58
163725 09/25/2026 MIDWEST TAPE 509367341 DVDS 1117201 61191 $ 390.91 163725 09/25/2026 MIDWEST TAPE 509367342 DVDS 1117201 61191 $ 378.64 163725 09/25/2026 MIDWEST TAPE 509367344 DVDS 1117201 61191 $ 33.99 163725 Total $ 803.54
163726 09/25/2026 NORMANDIN CHRYSLER JEEP DODGE 219555 AUTO PARTS 1115402 61265 $ 160.38 163726 Total $ 160.38
163727 09/25/2026 O'BRIEN CODE CONSULTING, INC, 2026001085 B26-0576 176 & 176-A LOMA ALTA AVENUE 1113999 68416 $ 3,306.48 163727 09/25/2026 O'BRIEN CODE CONSULTING, INC, 2025001044TM B25-0183 309 NSC AVENUE 1113999 68416 $ 750.00 163727 09/25/2026 O'BRIEN CODE CONSULTING, INC, 2025001163TM B25-1147 PLAN CHECK 1113999 68416 $ 300.00 163727 09/25/2026 O'BRIEN CODE CONSULTING, INC, 2026001020TM B26-0158 555 KNOWLES DRIVE 1113999 68416 $ 300.00 163727 Total $ 4,656.48
163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-115633 AUTO PARTS 1115402 61265 $ 122.55 163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-115792 AUTO PARTS 1115402 61265 $ 149.19 163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-117224 AUTO PARTS 1115402 61265 $ 23.22 163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-117226 AUTO PARTS 1115402 61265 $ 76.89 163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-118243 CREDIT MEMO 1115402 61265 $ (22.00) 163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-118797 AUTO PARTS 1115402 61265 $ 40.87 163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-118807 AUTO PARTS 1115402 61265 $ 87.88 163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-118843 AUTO PARTS 1115402 61265 $ 92.27 163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-118926 AUTO PARTS 1115402 61265 $ 34.06 163728 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-119144 SUPPLIES 1115402 61265 $ 87.26 163728 Total $ 692.19
163729 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-115870 AUTO PARTS 1115402 61265 $ 17.40 163729 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-118914 AUTO PARTS 1115402 61265 $ 17.44

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 09-25-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163729 09/25/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-119065 AUTO PARTS 1115402 61265 $ 18.98 163729 Total $ 53.82
163730 09/25/2026 OCLC, INC. 1000521454 080126-083126 EAUDIOBOOK/EBOOK 1117201 61191 $ 899.07 163730 09/25/2026 OCLC, INC. 1000521469 080126-083126 EAUDIOBOOK/EBOOK 1117201 61191 $ 1,120.34 163730 Total $ 2,019.41
163731 09/25/2026 ODP BUSINESS SOLUTIONS 479458630001 SUPPLIES 6335423 61112 $ 39.34 163731 09/25/2026 ODP BUSINESS SOLUTIONS 481013612001 SUPPLIES 1115201 61111 $ 37.13 163731 09/25/2026 ODP BUSINESS SOLUTIONS 479458630001-01 SUPPLIES 1115101 61111 $ 71.40 163731 09/25/2026 ODP BUSINESS SOLUTIONS 479458630001-01 SUPPLIES 1115101 61111 $ 25.27 163731 Total $ 173.14
163732 09/25/2026 OPERATION FREEDOM PAWS 25546 073026-080226 BOARDING 1114301 61174 $ 201.00 163732 Total $ 201.00
163733 09/25/2026 ORCHARD CITY LOCK AND SAFE, INC. 87721 PD DISPATCH DEADLATCH 6335423 61214 $ 93.70 163733 Total $ 93.70
163734 09/25/2026 PACIFIC GAS & ELECTRIC 00442-091726 081126-090926 SERVICE 1115401 62621 $ 79.54 163734 09/25/2026 PACIFIC GAS & ELECTRIC 01468-091626 081126-090926 SERVICE 6335423 62611 $ 14,450.03 163734 09/25/2026 PACIFIC GAS & ELECTRIC 01468-091626 081126-090926 SERVICE 6335423 62612 $ 220.08 163734 09/25/2026 PACIFIC GAS & ELECTRIC 08696-091626 081126-090926 SERVICE 6335423 62611 $ 69.77 163734 09/25/2026 PACIFIC GAS & ELECTRIC 08696-091626 081126-090926 SERVICE 6335423 62612 $ 8.11 163734 09/25/2026 PACIFIC GAS & ELECTRIC 10807-092126 081426-091426 SERVICE 1115401 62621 $ 156.95 163734 09/25/2026 PACIFIC GAS & ELECTRIC 17087-091726 081326-091126 SERVICE 1115401 62621 $ 95.39 163734 09/25/2026 PACIFIC GAS & ELECTRIC 43001-092126 081326-091326 SERVICE 1115401 62621 $ 329.68 163734 09/25/2026 PACIFIC GAS & ELECTRIC 47593-091026 080326-090126 SERVICE 2515408 62611 $ 6,099.30 163734 09/25/2026 PACIFIC GAS & ELECTRIC 47593-091026 080326-090126 SERVICE 2515408 62612 $ 8.11 163734 09/25/2026 PACIFIC GAS & ELECTRIC 61917-092126 081426-091426 SERVICE 1115401 62621 $ 91.08 163734 09/25/2026 PACIFIC GAS & ELECTRIC 64101-090926 073126-083126 SERVICE 1115401 62621 $ 174.05 163734 09/25/2026 PACIFIC GAS & ELECTRIC 89638-090826 073026-083026 SERVICE 1115301 62611 $ 269.59 163734 Total $ 22,051.68
163735 09/25/2026 PACIFIC GAS & ELECTRIC 63609-091826 081426-091426 SERVICE 1115401 62621 $ 3.26 163735 09/25/2026 PACIFIC GAS & ELECTRIC 66647-092126 081426-091426 SERVICE 1115402 61264 $ 49.04 163735 09/25/2026 PACIFIC GAS & ELECTRIC 70739-090926 080326-090126 SERVICE 1115301 62611 $ 23.37 163735 09/25/2026 PACIFIC GAS & ELECTRIC 81107-091526 081026-090826 SERVICE 6335423 62611 $ 10.37 163735 Total $ 86.04
163736 09/25/2026 PERMITIUM LLC PER00042864 AUGUST 2026 SERVICE 1114202 64212 $ 200.00 163736 Total $ 200.00
163737 09/25/2026 PETER L HERTAN 092326 RETURNED PAYCHECK DATED 06-17-22 1112101 51310 $ 97.27 163737 Total $ 97.27
163738 09/25/2026 PRAHALLAD BADAMI 062326 MILEAGE REIMBURSEMENT - WORKSHOP 1115201 64211 $ 39.88 163738 09/25/2026 PRAHALLAD BADAMI 082026 MILEAGE REIMBURSEMENT - OBAG 4/CARE SCORING 1115201 64211 $ 21.28 163738 Total $ 61.16
163739 09/25/2026 RICHARDS, WATSON & GERSHON 260059 SERVICES THROUGH 073126 1111301 63215 $ 575.00 163739 Total $ 575.00
163740 09/25/2026 RURAL SUPPLY HARDWARE INC 8127 SUPPLIES 1115401 61275 $ 42.27 163740 09/25/2026 RURAL SUPPLY HARDWARE INC 8164 SUPPLIES 1115401 61275 $ 23.59

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 09-25-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163740 09/25/2026 RURAL SUPPLY HARDWARE INC 8192 SUPPLIES 1115401 61275 $ 31.84 163740 Total $ 97.70
163741 09/25/2026 SAN JOSE BMW 287018 AUTO REPAIRS 1115402 61265 $ 548.04 163741 09/25/2026 SAN JOSE BMW 287018 AUTO REPAIRS 1115402 62392 $ 1,018.50 163741 Total $ 1,566.54
163742 09/25/2026 SILICON VALLEY ANIMAL 2026-49 FY 26-27 2ND QUARTER PAYMENT 1111201 63114 $ 63,785.50 163742 Total $ 63,785.50
163743 09/25/2026 SPECIALIZED ELEVATOR CORP 525167 090126-093026 THEATER SERVICE 2515408 63353 $ 325.00 163743 09/25/2026 SPECIALIZED ELEVATOR CORP 525168 090126-093026 SERVICE 6335423 63353 $ 1,625.00 163743 Total $ 1,950.00
163744 09/25/2026 STATE OF CALIFORNIA DEPT OF JUSTICE 064099 JULY 2026 FINGERPRINTING 1112201 64433 $ 32.00 163744 Total $ 32.00
163745 09/25/2026 SUMMIT UNIFORMS LLC 45176 UNIFORMS 1114301 61165 $ 123.20 163745 Total $ 123.20
163746 09/25/2026 SUNWEALTH PROJECT POOL 5 LLC INV-14819 AUGUST 2026 POLICE INVOICE 6335423 62611 $ 1,844.66 163746 Total $ 1,844.66
163747 09/25/2026 SYSERCO INC 36134 081826-081926 SERVICE 111 21116 $ (809.40) 163747 09/25/2026 SYSERCO INC 36134 081826-081926 SERVICE 4118724 82405 $ 16,188.00 163747 Total $ 15,378.60
163748 09/25/2026 THE ALARM COMPANY INC 366420 090126-093026 MONITORING 6335423 63362 $ 253.00 163748 Total $ 253.00
163749 09/25/2026 TOWNSEND PUBLIC AFFAIRS INC 25962 SEPTEMBER 2026 SERVICES 1111201 63219 $ 4,000.00 163749 Total $ 4,000.00
163750 09/25/2026 TRANSUNION RISK & ALT DATA SOLUTION 278896-202607-1 JULY 2026 BILLING 1114303 61163 $ 415.40 163750 09/25/2026 TRANSUNION RISK & ALT DATA SOLUTION 278896-202608-1 080126-083126 BILLING PERIOD 1114303 61163 $ 213.40 163750 Total $ 628.80
163751 09/25/2026 TRUEPOINT SOLUTIONS, LLC 50243 080526-083126 SERVICE 6212502 63331 $ 3,382.50 163751 Total $ 3,382.50
163752 09/25/2026 URBAN37 INC 2307 082926 SERVICE 1113999 68416 $ 2,674.37 163752 09/25/2026 URBAN37 INC 2308 090426 SERVICE 1113999 68416 $ 889.04 163752 Total $ 3,563.41
163753 09/25/2026 VICKI L BLANDIN LG26-26 TRANSCRIPTION SERVICES 1113201 62310 $ 250.00 163753 09/25/2026 VICKI L BLANDIN LG27-26 TRANSCRIPTION SERVICES 1113201 62310 $ 150.00 163753 Total $ 400.00
Grand Total $ 310,932.50

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-02-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163754 10/02/2026 AFSCME COUNCIL 57 112105 AFSCME DUES PPE 09/26/26 111 21263 $ 301.86 163754 Total $ 301.86
163755 10/02/2026 AIR SYSTEMS INC 961022021 SEPTEMBER 2026 YRC 6335423 63352 $ 416.00 163755 10/02/2026 AIR SYSTEMS INC 961022038 SEPTEMBER 2026 MAINTENANCE 6335423 63352 $ 1,159.00 163755 10/02/2026 AIR SYSTEMS INC 961022039 SEPTEMBER 2026 MAINTENANCE 6335423 63352 $ 1,317.00 163755 Total $ 2,892.00
163756 10/02/2026 AMAZON CAPITAL SERVICES INC 11MG9T9RKYFG SUPPLIES 1117201 61191 $ 53.83 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 14L7N3FTWC4N SUPPLIES 6212502 61133 $ 126.36 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 16RP717JYPFC SUPPLIES 1117201 61191 $ 15.05 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 1D37YXD4VYTN SUPPLIES 1117201 61191 $ 85.68 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 1F67H97PTKTJ SUPPLIES 1114201 61111 $ 130.68 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 1F67H97PY4NW SUPPLIES 1117201 61191 $ 23.73 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 1G64PF6T1C1D SUPPLIES 1117201 61191 $ 89.74 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 1N66T3PQWTHV SUPPLIES 1117202 61192 $ 68.72 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 1PV9XY3JWJRC SUPPLIES 2617301 62424 $ 70.32 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 1QFGKNL1KCDM SUPPLIES 1112201 64122 $ 27.46 163756 10/02/2026 AMAZON CAPITAL SERVICES INC 1QYLQQ4J1DC9 SUPPLIES 2617301 62421 $ 92.26 163756 Total $ 783.83
163757 10/02/2026 AMAZON CAPITAL SERVICES INC 1NPHP4PH1KV6 SUPPLIES 6335423 61214 $ 6.58 163757 Total $ 6.58
163758 10/02/2026 AT&T CALNET 3 000025868221 082026-091926 SERVICE 1114201 62622 $ 58.69 163758 Total $ 58.69
163759 10/02/2026 ATCHISON, BARISONE & CONDOTTI 35188 080126-083126 SERVICE 1111301 63215 $ 3,856.70 163759 Total $ 3,856.70
163760 10/02/2026 BEAR ELECTRICAL SOLUTIONS, INC 12956 AUGUST 2026 ROUTINE SERVICE 1115401 63364 $ 3,782.00 163760 10/02/2026 BEAR ELECTRICAL SOLUTIONS, INC 12957 AUGUST 2026 TS MAINTENANCE SERVICES 1115401 63364 $ 4,595.00 163760 Total $ 8,377.00
163761 10/02/2026 BELLECCI & ASSOCIATES 260767-3 080126-083126 SERVICES 4628316 82303 $ 9,807.20 163761 10/02/2026 BELLECCI & ASSOCIATES 260837-3 080126-083126 SERVICES 4628313 82303 $ 1,638.60 163761 Total $ 11,445.80
163762 10/02/2026 BKF ENGINEERS 26081011 070126-072626 SERVICE 4218510 82405 $ 2,659.38 163762 10/02/2026 BKF ENGINEERS 26081011 070126-072626 SERVICE 4118510 82405 $ 913.62 163762 Total $ 3,573.00
163763 10/02/2026 BRODART COMPANY 682998 SUPPLIES 1117101 61111 $ 232.94 163763 Total $ 232.94
163764 10/02/2026 CANNON DESIGN GROUP 202616 SERVICES THROUGH 073126 1113999 68412 $ 3,000.00 163764 10/02/2026 CANNON DESIGN GROUP 202617 SERVICES THROUGH 073126 1113999 68412 $ 3,000.00 163764 10/02/2026 CANNON DESIGN GROUP 202619 SERVICES THROUGH 073126 1113999 68412 $ 3,000.00 163764 Total $ 9,000.00
163765 10/02/2026 CLINTON RYOJI TADA 04/21-042425 REISSUED CHECK: PER DIEM-AXON CONF 1114101 64111 $ 177.25 163765 Total $ 177.25
163766 10/02/2026 COBRA ADVANTAGE INC. 202100 AUGUST 2026 SERVICE 1111201 62113 $ 968.00 163766 Total $ 968.00
163767 10/02/2026 COMCAST 0737380-092326 092826-102726 SERVICE 6212502 62614 $ 131.74 163767 Total $ 131.74
163768 10/02/2026 CONSERVATION AMBASSADORS, INC 3966 100126 LIBRARY PROGRAM 2617301 62415 $ 950.00 163768 Total $ 950.00
Attachment 2

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-02-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163769 10/02/2026 COTTON, SHIRES AND ASSOCIATES INC 926003 070626-083126 SERVICE 200 HAPPY ACRES 1115999 68612 $ 2,627.06 163769 Total $ 2,627.06
163770 10/02/2026 CSG CONSULTANTS, INC. 67552 070126-073126 SERVICES 1115999 68416 $ 16,667.25 163770 10/02/2026 CSG CONSULTANTS, INC. 67553 070126-073126 SERVICE 1115999 68416 $ 3,485.50 163770 10/02/2026 CSG CONSULTANTS, INC. 67554 070126-073126 SERVICE 1115999 68416 $ 45,562.00 163770 10/02/2026 CSG CONSULTANTS, INC. 67555 070126-073126 SERVICE 1115999 68416 $ 912.00 163770 10/02/2026 CSG CONSULTANTS, INC. 67556 070126-073126 SERVICE 1115999 68416 $ 4,959.00 163770 Total $ 71,585.75
163771 10/02/2026 DUDEK 202607829 070126-072426 SERVICES 1113999 68413 $ 500.00 163771 10/02/2026 DUDEK 202607894R 070126-072426 SERVICE 1112105 63219 $ 6,616.25 163771 Total $ 7,116.25
163772 10/02/2026 EOA INC LS0323-0726 070126-073126 BILLING 1115999 68618 $ 1,912.00 163772 10/02/2026 EOA INC LS0325-0726 070126-073126 BILLING 1115999 68618 $ 285.00 163772 10/02/2026 EOA INC LS0326-0726 070126-073126 BILLING 1115999 68618 $ 2,414.00 163772 Total $ 4,611.00
163773 10/02/2026 ERIN M WALTERS 10/02/26-10/06/26 PER DIEM REIMBURSEMENT - 2026 APA CONFERENCE 1113201 64111 $ 209.50 163773 Total $ 209.50
163774 10/02/2026 FJM TRUCK & TRAILER CENTER LLC INV-00013812 SMOKE OPACITY TEST 1115402 62392 $ 200.00 163774 10/02/2026 FJM TRUCK & TRAILER CENTER LLC INV-00013822 SMOKE OPACITY TEST 1115402 62392 $ 200.00 163774 Total $ 400.00
163775 10/02/2026 FRONTIER CALIFORNIA INC 1970184-092226 092226-102126 SERVICE 6212502 62614 $ 400.00 163775 Total $ 400.00
163776 10/02/2026 GOODYEAR AUTO SERVICE CENTER 0000109892 AUTO PARTS 1115402 61265 $ 747.60 163776 Total $ 747.60
163777 10/02/2026 GREGORIO BORROMEO 10/11/26-10/15/26 PER DIEM REIMBURSEMENT - MANAGEMENT COURSE WK3 1114101 64111 $ 387.00 163777 Total $ 387.00
163778 10/02/2026 GROUND CONTROL INC 4 070126-073126 SERVICE 111 21116 $ (27,910.93) 163778 10/02/2026 GROUND CONTROL INC 4 070126-073126 SERVICE 4118106 82405 $ 558,218.60 163778 Total $ 530,307.67
163779 10/02/2026 HALEY & ALDRICH INC 9074593 SERVICES THRU 073126 4118106 82303 $ 7,077.50 163779 10/02/2026 HALEY & ALDRICH INC 9074595 SERVICES THRU 073126 4118106 82405 $ 61,916.43 163779 10/02/2026 HALEY & ALDRICH INC 9075824 SERVICES THROUGH 082826 4118106 82405 $ 48,684.75 163779 10/02/2026 HALEY & ALDRICH INC 9075825 SERVICES THROUGH 082826 4118106 82303 $ 14,263.75 163779 Total $ 131,942.43
163780 10/02/2026 ICON APPAREL GROUP 15593 LG TOTES 1112201 64122 $ 2,617.63 163780 Total $ 2,617.63
163781 10/02/2026 ISI INSPECTION SERVICES INC 265903 070126-073126 SERVICES 4118106 82405 $ 14,772.47 163781 10/02/2026 ISI INSPECTION SERVICES INC 266026 SERVICES THRU 083126 4118106 82405 $ 21,988.25 163781 Total $ 36,760.72
163782 10/02/2026 JOHNSON, ROBERTS, & ASSOCIATES 159088 AUGUST 2026 BILLING 1114202 64432 $ 97.50 163782 Total $ 97.50
163783 10/02/2026 JULIE LIN-FRISS 120 092726 LIBRARY PROGRAM 2617301 62424 $ 200.00 163783 Total $ 200.00
163784 10/02/2026 LIEBERT CASSIDY WHITMORE 323918 070126-063027 MEMBERSHIP 1112201 63214 $ 5,675.00 163784 Total $ 5,675.00
163785 10/02/2026 LISA WISE CONSULTING INC 5377 070126-073126 PERIOD 1113202 63219 $ 3,879.75 163785 Total $ 3,879.75

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-02-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163786 10/02/2026 LOS GATOS TOWN EMPLOYEES FOUNDATION 112106 LGTEF PPE 09/26/26 111 21264 $ 456.00 163786 Total $ 456.00
163787 10/02/2026 LYNX TECHNOLOGIES 10722 AUGUST 2026 SERVICES 6212502 63331 $ 6,825.00 163787 Total $ 6,825.00
163788 10/02/2026 MIDWEST MOTOR SUPPLY CO., INC. 104830109 SUPPLIES 1115402 61265 $ 1,618.45 163788 Total $ 1,618.45
163789 10/02/2026 MIDWEST TAPE 509398237 DVDS 1117201 61191 $ 187.19 163789 10/02/2026 MIDWEST TAPE 509398238 DVDS 1117201 61191 $ 246.16 163789 Total $ 433.35
163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 148ST1-2386968745 E MORT BOOTS CREDIT 1115401 61213 $ (177.64) 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 148ST1-2584481945 K SELFRIDGE 1115202 61213 $ 180.00 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 148ST1-2668829433 D MURDOCK 6335423 61213 $ 350.00 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 148ST1-5406875 N TURNER BOOTS CREDIT 1115402 61213 $ (304.36) 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 160ST1-2722028185 A HERNANDEZ 1115301 61213 $ 180.00 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 160ST1-2879694741 CREDIT MEMO 1115401 61213 $ (293.83) 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 160ST1-2879766633 J COVARRUBIAS 1115401 61213 $ 350.00 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 160ST1-3051504721 CREDIT MEMO 1115401 61213 $ (65.97) 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 160ST1-3051545961 N KALPIN 1115401 61213 $ 350.00 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 160ST1-5474512 J COVARRUBIAS BOOTS CREDIT 1115401 61213 $ (350.00) 163790 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 231ST1-2743605309 A HERNANDEZ 1115401 61213 $ 180.00 163790 Total $ 398.20
163791 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 160ST1-2690371165 N KALPIN 1115401 61213 $ 65.97 163791 10/02/2026 MULTI SERVICE TECHNOLOGY SOLUTIONS 160ST1-2879763405 CREDIT MEMO 1115401 61213 $ (56.17) 163791 Total $ 9.80
163792 10/02/2026 NINYO & MOORE GEOTECHNICAL & ENVIRONMENTAL 325217 SERVICES THROUGH 073126 4218405 82405 $ 3,820.00 163792 10/02/2026 NINYO & MOORE GEOTECHNICAL & ENVIRONMENTAL 325219 SERVICES THRU 073126 4818155 82405 $ 7,680.00 163792 10/02/2026 NINYO & MOORE GEOTECHNICAL & ENVIRONMENTAL 325218B SERVICES THROUGH 073126 4118120 82405 $ 4,250.00 163792 Total $ 15,750.00
163793 10/02/2026 O'BRIEN CODE CONSULTING, INC, 2026001088 B26-0602 PLAN CHECK 1113999 68416 $ 358.85 163793 10/02/2026 O'BRIEN CODE CONSULTING, INC, 2026001089 B26-0615 PLAN CHECK SERVICES 1113999 68416 $ 1,447.96 163793 10/02/2026 O'BRIEN CODE CONSULTING, INC, 2026001094 B26-0653 PLAN CHECK 1113999 68416 $ 254.99 163793 10/02/2026 O'BRIEN CODE CONSULTING, INC, 2026001094TM B25-1150 PLAN CHECK 1113999 68416 $ 450.00 163793 10/02/2026 O'BRIEN CODE CONSULTING, INC, 2026001095TM B25-0732 PLAN CHECK SERVICES 1113999 68416 $ 225.00 163793 Total $ 2,736.80
163794 10/02/2026 O'GRADY PAVING INC 9699 080126-090826 SERVICE 111 21116 $ (18,183.19) 163794 10/02/2026 O'GRADY PAVING INC 9699 080126-090826 SERVICE 4818101 82405 $ 363,663.70 163794 Total $ 345,480.51
163795 10/02/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-119569 AUTO PARTS 1115402 61265 $ 11.71 163795 10/02/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-119572 AUTO PARTS 1115402 61265 $ 36.01 163795 Total $ 47.72
163796 10/02/2026 OCLC, INC. 1000521396 080126-083126 EAUDIOBOOK 1117201 61191 $ 338.26 163796 Total $ 338.26
163797 10/02/2026 ODP BUSINESS SOLUTIONS 481302152001 SUPPLIES 1111101 61111 $ 55.11 163797 Total $ 55.11
163798 10/02/2026 ORCHARD CITY LOCK AND SAFE, INC. 88225 SUPPLIES 6335423 61214 $ 18.18 163798 Total $ 18.18
163799 10/02/2026 PACIFIC GAS & ELECTRIC 07036-092426 081426-091426 SERVICE 1115401 62621 $ 243.81

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-02-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163799 10/02/2026 PACIFIC GAS & ELECTRIC 31221-092226 072426-082426 SERVICE 1115401 62621 $ 2,647.31 163799 10/02/2026 PACIFIC GAS & ELECTRIC 34109-092426 081826-091626 SERVICE 1115301 62611 $ 259.40 163799 10/02/2026 PACIFIC GAS & ELECTRIC 46335-092226 081426-091426 SERVICE 1115401 62621 $ 69.46 163799 10/02/2026 PACIFIC GAS & ELECTRIC 52897-092226 081426-091426 SERVICE 1115301 62611 $ 4,873.10 163799 10/02/2026 PACIFIC GAS & ELECTRIC 52897-092226 081426-091426 SERVICE 1115401 62621 $ 114.60 163799 10/02/2026 PACIFIC GAS & ELECTRIC 54633-092226 081726-091526 SERVICE 6335423 62611 $ 9.86 163799 Total $ 8,217.54
163800 10/02/2026 POLICE MANAGEMENT ASSOCIATION 112107 PMA DUES PPE 09/26/26 111 21265 $ 90.00 163800 Total $ 90.00
163801 10/02/2026 POLICE OFFICERS ASSOCIATION 112104 POA DUES PPE 09/26/26 111 21262 $ 1,740.00 163801 Total $ 1,740.00
163802 10/02/2026 PRECISIONWORKS LLC 56874 070626-071726 SIDEWALK OFFSET REPAIR 4118120 82405 $ 90,000.00 163802 Total $ 90,000.00
163803 10/02/2026 PREFERRED ALLIANCE INC 0212593-IN AUGUST 2026 SERVICES 1112201 62321 $ 82.30 163803 Total $ 82.30
163804 10/02/2026 QLM INC 6212 070126-071626 SERVICE 111 21116 $ (8,134.50) 163804 10/02/2026 QLM INC 6212 070126-071626 SERVICE 4118120 82405 $ 162,690.00 163804 10/02/2026 QLM INC 6233 070126-073126 PERIOD 111 21116 $ (7,788.45) 163804 10/02/2026 QLM INC 6233 070126-073126 PERIOD 4218405 82405 $ 155,769.00 163804 10/02/2026 QLM INC 6258 080126-083126 PERIOD 111 21116 $ (631.30) 163804 10/02/2026 QLM INC 6258 080126-083126 PERIOD 4218405 82405 $ 12,626.00 163804 Total $ 314,530.75
163805 10/02/2026 RANEY PLANNING & MANAGEMENT INC 2511E-15 AUGUST 2026 SERVICE 1113999 68411 $ 150.00 163805 10/02/2026 RANEY PLANNING & MANAGEMENT INC 2622E-5 AUGUST 2026 SERVICES 1113999 68411 $ 395.00 163805 10/02/2026 RANEY PLANNING & MANAGEMENT INC 2622E-4 JULY 2026 SERVICE 1113999 68411 $ 428.75 163805 Total $ 973.75
163806 10/02/2026 RICHARD J RONDEAU III 10/12/26-10/14/26 PER DIEM REIMBURSEMENT - OIS FOR FIELD SUPERVISORS 1114301 64111 $ 215.00 163806 Total $ 215.00
163807 10/02/2026 RICHARDS, WATSON & GERSHON 260262 SERVICES THROUGH 083126 1111301 63215 $ 839.15 163807 Total $ 839.15
163808 10/02/2026 RURAL SUPPLY HARDWARE INC 8218 SUPPLIES 1115301 61214 $ 191.12 163808 10/02/2026 RURAL SUPPLY HARDWARE INC 8227 SUPPLIES 1115401 61275 $ 12.08 163808 Total $ 203.20
163809 10/02/2026 SAN JOSE BMW 287130 AUTO PARTS 1115402 61265 $ 529.10 163809 10/02/2026 SAN JOSE BMW 287130 AUTO PARTS 1115402 62392 $ 871.50 163809 Total $ 1,400.60
163810 10/02/2026 SAN JOSE WATER COMPANY 05325-092226 082426-092226 SERVICE 6335423 62613 $ 174.10 163810 10/02/2026 SAN JOSE WATER COMPANY 09595-092226 082426-092226 SERVICE 1115301 62613 $ 359.67 163810 10/02/2026 SAN JOSE WATER COMPANY 15970-092226 081826-091826 SERVICE 1115301 62613 $ 438.60 163810 10/02/2026 SAN JOSE WATER COMPANY 27204-092226 082426-092226 SERVICE 6335423 62613 $ 174.10 163810 10/02/2026 SAN JOSE WATER COMPANY 28168-092226 082426-092226 SERVICE 2515408 62613 $ 221.61 163810 10/02/2026 SAN JOSE WATER COMPANY 60886-092226 081826-091726 SERVICE 1115301 62613 $ 793.61 163810 10/02/2026 SAN JOSE WATER COMPANY 66752-092226 081826-091726 SERVICE 1115301 62613 $ 266.25 163810 10/02/2026 SAN JOSE WATER COMPANY 70771-092226 082426-092226 SERVICE 1115301 62613 $ 174.10 163810 10/02/2026 SAN JOSE WATER COMPANY 80684-092226 081826-091826 SERVICE 1115301 62613 $ 438.60 163810 10/02/2026 SAN JOSE WATER COMPANY 82653-092226 082426-092226 SERVICE 6335423 62613 $ 174.10 163810 10/02/2026 SAN JOSE WATER COMPANY 83824-092226 081726-092226 SERVICE 1115301 62613 $ 509.35

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-02-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163810 Total $ 3,724.09
163811 10/02/2026 SAN JOSE WATER COMPANY 41134-092226 082426-092226 SERVICE 1115301 62613 $ 110.80 163811 10/02/2026 SAN JOSE WATER COMPANY 42179-092226 082426-092226 SERVICE 6335423 62613 $ 110.80 163811 10/02/2026 SAN JOSE WATER COMPANY 73060-092226 082426-092226 SERVICE 1115301 62613 $ 110.80 163811 10/02/2026 SAN JOSE WATER COMPANY 85995-092226 082426-092226 SERVICE 6335423 62613 $ 110.80 163811 Total $ 443.20
163812 10/02/2026 SCHAAF & WHEELER, CONSULTING CIVIL ENGINEERS 43735 BILLING THROUGH 073126 4618311 82303 $ 6,155.00 163812 Total $ 6,155.00
163813 10/02/2026 SEQUOIA ECOLOGICAL CONSULTING INC 000002026489 070126-083126 SERVICES 4118507 82303 $ 790.50 163813 Total $ 790.50
163814 10/02/2026 SILICON VALLEY COMMUNITY NEWSPAPERS 0006982873 080126-083126 BILLING PERIOD 1113201 62311 $ 202.27 163814 10/02/2026 SILICON VALLEY COMMUNITY NEWSPAPERS 0006982877 080126-083126 BILLING PERIOD 1113201 62311 $ 205.66 163814 10/02/2026 SILICON VALLEY COMMUNITY NEWSPAPERS 0006983713 080126-083126 BILLING PERIOD 1113201 62311 $ 200.01 163814 10/02/2026 SILICON VALLEY COMMUNITY NEWSPAPERS 0006984403 LEGAL AD 4118115 82103 $ 450.87 163814 10/02/2026 SILICON VALLEY COMMUNITY NEWSPAPERS 0006985287 080126-083126 BILLING PERIOD 1113202 62311 $ 516.10 163814 Total $ 1,574.91
163815 10/02/2026 SPECIALIZED ELEVATOR CORP 531331 SERVICE AT 100 VILLA AVE 6335423 63353 $ 955.95 163815 Total $ 955.95
163816 10/02/2026 SYN TECH SYSTEMS INC 340337 100126-093027 MAINTENANCE 1115402 61265 $ 600.00 163816 Total $ 600.00
163817 10/02/2026 TOWN EMPLOYEES ASSOCIATION 112103 TEA DUES PPE 09/26/26 111 21261 $ 1,375.90 163817 Total $ 1,375.90
163818 10/02/2026 TRAFFIC AND PARKING CONTROL CO LLC I830403 SPEEDALERT 18 RADAR MESSAGE SIGN 6315421 81112 $ 15,448.20 163818 Total $ 15,448.20
163819 10/02/2026 TRANSTECH ENGINEERS INC 20265310 BILLED THRU 073126 1115201 63264 $ 2,486.25 163819 10/02/2026 TRANSTECH ENGINEERS INC 20265311 BILLED THRU 073126 4118106 82303 $ 3,478.75 163819 10/02/2026 TRANSTECH ENGINEERS INC 20265312 BILLED THRU 073126 4118405 82303 $ 6,945.00 163819 10/02/2026 TRANSTECH ENGINEERS INC 20265313 BILLED THRU 073126 4118740 82303 $ 3,798.75 163819 10/02/2026 TRANSTECH ENGINEERS INC 20265314 BILLED THRU 073126 4618311 82303 $ 6,543.75 163819 10/02/2026 TRANSTECH ENGINEERS INC 20266057 BILLED THRU 083126 1115201 63264 $ 1,560.00 163819 10/02/2026 TRANSTECH ENGINEERS INC 20266058 BILLED THRU 083126 4118106 82303 $ 2,970.00 163819 10/02/2026 TRANSTECH ENGINEERS INC 20266059 BILLED THRU 083126 4118405 82303 $ 3,753.75 163819 10/02/2026 TRANSTECH ENGINEERS INC 20266060 BILLED THRU 083126 4118740 82303 $ 14,943.75 163819 10/02/2026 TRANSTECH ENGINEERS INC 20266061 BILLED THRU 083126 4618311 82303 $ 195.00 163819 Total $ 46,675.00
163820 10/02/2026 TRIDENT K-9 CONSULTING 1811 K9 TRAINING 1114301 64282 $ 500.00 163820 10/02/2026 TRIDENT K-9 CONSULTING 1828 K9 TRAINING 1114301 64282 $ 500.00 163820 Total $ 1,000.00
163821 10/02/2026 URBAN37 INC 2309 083126 SERVICE 1113999 68416 $ 3,105.35 163821 10/02/2026 URBAN37 INC 2310 083026 SERVICE 1113999 68416 $ 997.43 163821 10/02/2026 URBAN37 INC 2311 082826 SERVICE 1113999 68416 $ 1,210.84 163821 10/02/2026 URBAN37 INC 2312 082826 SERVICE 1113999 68416 $ 1,295.53 163821 10/02/2026 URBAN37 INC 2313 081726 SERVICE 1113999 68416 $ 334.42 163821 10/02/2026 URBAN37 INC 2315 090326 SERVICE 1113999 68416 $ 668.86 163821 10/02/2026 URBAN37 INC 2316 091026 SERVICE 1113999 68416 $ 3,105.35 163821 10/02/2026 URBAN37 INC 2317 090826 SERVICE 1113999 68416 $ 1,674.91 163821 10/02/2026 URBAN37 INC 2318 082826 SERVICE 1113999 68416 $ 330.00

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-02-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163821 Total $ 12,722.69
163822 10/02/2026 VERIZON BUSINESS SERVICES 73808456 SV649545 SERVICES THROUGH 083126 6335423 62631 $ 324.32 163822 10/02/2026 VERIZON BUSINESS SERVICES 73809329 SV649539 SERVICES THROUGH 083126 6335423 62631 $ 715.36 163822 10/02/2026 VERIZON BUSINESS SERVICES 73809332 SV649543 SERVICES THROUGH 083126 6335423 62631 $ 820.17 163822 10/02/2026 VERIZON BUSINESS SERVICES 73809333 SV649544 SERVICES THRU 083126 6335423 62631 $ 1,366.00 163822 Total $ 3,225.85
163823 10/02/2026 VERIZON WIRELESS 6153308919 081326-091226 SERVICE 6335423 62632 $ 65.58 163823 10/02/2026 VERIZON WIRELESS 6153308919 081326-091226 SERVICE 1115401 62632 $ 352.77 163823 10/02/2026 VERIZON WIRELESS 6153308919 081326-091226 SERVICE 1115301 62632 $ 153.02 163823 10/02/2026 VERIZON WIRELESS 6153308919 081326-091226 SERVICE 1115201 62632 $ 21.86 163823 10/02/2026 VERIZON WIRELESS 6153308919 081326-091226 SERVICE 1115101 62632 $ 21.86 163823 10/02/2026 VERIZON WIRELESS 6153308919 081326-091226 SERVICE 1113401 62632 $ 21.86 163823 10/02/2026 VERIZON WIRELESS 6153308919 081326-091226 SERVICE 1113301 62632 $ 109.30 163823 10/02/2026 VERIZON WIRELESS 6153308919 081326-091226 SERVICE 6212502 62632 $ 114.03 163823 Total $ 860.28
163824 10/02/2026 VICKI L BLANDIN LG18-26 TRANSCRIPTION SERVICES 1113999 68415 $ 612.50 163824 Total $ 612.50
163825 10/02/2026 VISIONSCAPE IMAGERY INC 6032 15495 LOS GATOS 1113999 68428 $ 7,900.00 163825 10/02/2026 VISIONSCAPE IMAGERY INC 6033 16492 LOS GATOS 1113999 68428 $ 6,400.00 163825 Total $ 14,300.00
163826 10/02/2026 WEX HEALTH INC 0002453757-IN AUGUST 2026 BILLING PERIOD 1111201 62116 $ 110.70 163826 Total $ 110.70
163827 10/02/2026 WILLIAM JEFFREY HEID 090826-15343 15343 SANTELLA COURT 1113999 68419 $ 1,125.00 163827 10/02/2026 WILLIAM JEFFREY HEID 090826-16501 011326-080726 SERVICE 1113999 68419 $ 1,425.00 163827 Total $ 2,550.00
Grand Total $ 1,747,904.69

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-09-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 19PK6DHDV6KG SUPPLIES 2617301 62424 $ 74.75 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 1GCVWHPJTKJ9 SUPPLIES 1117201 61191 $ 112.16 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 1GV796LL1FYC CREDIT MEMO 1117204 61132 $ (70.66) 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 1JCFHDYKLHP9 SUPPLIES 6335423 61214 $ 36.64 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 1M31DMVT1Q4T SUPPLIES 6335423 61214 $ 39.58 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 1Q1PRDLY6YLG SUPPLIES 1114201 61111 $ 228.07 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 1R3GQNPYMCLT SUPPLIES 1117201 61191 $ 25.69 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 1R3MJDY9JJLQ SUPPLIES 2617301 62424 $ 40.17 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 1V4H97FHQ9VL SUPPLIES 1117201 61191 $ 40.95 163828 10/09/2026 AMAZON CAPITAL SERVICES INC 1YQTWJCVCNVG SUPPLIES 6335423 61214 $ 70.63 163828 Total $ 597.98
163829 10/09/2026 AMAZON CAPITAL SERVICES INC 11HFXYXVQ4R9 SUPPLIES 1117201 61191 $ 19.77 163829 10/09/2026 AMAZON CAPITAL SERVICES INC 139FKLQKPFMR SUPPLIES 1117202 61192 $ 8.14 163829 10/09/2026 AMAZON CAPITAL SERVICES INC 17KVL379P7D6 SUPPLIES 1117101 61111 $ 8.78 163829 10/09/2026 AMAZON CAPITAL SERVICES INC 19VGKHYQQRVP SUPPLIES 1117202 61192 $ 19.76 163829 Total $ 56.45
163830 10/09/2026 AMERICAN PUBLIC WORKS ASSOCIATION 000959929 PUBLIC AGENCY MEMBERSHIP/SV CHAPTER DUES 1115101 62152 $ 948.75 163830 10/09/2026 AMERICAN PUBLIC WORKS ASSOCIATION 000959929-01 PUBLIC AGENCY MEMBERSHIP/SV CHAPTER DUES 1115201 62152 $ 316.25 163830 Total $ 1,265.00
163831 10/09/2026 AT&T CALNET 3 000025868150 082026-091926 SERVICE 1114201 62622 $ 402.66 163831 Total $ 402.66
163832 10/09/2026 BLACKSTONE AUDIO INC 2245598 AUDIOBOOKS 1117201 61191 $ 53.35 163832 Total $ 53.35
163833 10/09/2026 BOETHING TREELAND FARMS INC SI-1479842 TREES 1115999 68621 $ 2,657.27 163833 10/09/2026 BOETHING TREELAND FARMS INC SI-1479843 TREES 1115999 68621 $ 1,307.16 163833 Total $ 3,964.43
163834 10/09/2026 CALIFORNIA ROOFING CO., INC. 26-08-18 COMPLETE NEW TART GRAVEL 4128736 82405 $ 182,440.00 163834 Total $ 182,440.00
163835 10/09/2026 CHAPLIN AND HILL INVESTIGATIVE SERVICES LLC LCMSPD26_7 072226-072726 SERVICE 1114101 63215 $ 675.00 163835 10/09/2026 CHAPLIN AND HILL INVESTIGATIVE SERVICES LLC LCMSPD26_8 080326-083126 SERVICE 1114101 63215 $ 2,098.03 163835 Total $ 2,773.03
163836 10/09/2026 CLASSIC CAR WASH 0490 AUGUST 2026 CAR WASHES 1114301 62392 $ 180.00 163836 Total $ 180.00
163837 10/09/2026 COMCAST 0185598-092826 100326-110226 SERVICE 1114201 62622 $ 623.77 163837 Total $ 623.77
163838 10/09/2026 COUNTY OF SANTA CLARA IN1385818 ID#FA0252069 ENVIRONMENTAL HEALTH FEE 6335423 62324 $ 922.00 163838 Total $ 922.00
163839 10/09/2026 CSG CONSULTANTS, INC. 67994 080126-082826 SERVICES 1115999 68416 $ 5,203.25 163839 10/09/2026 CSG CONSULTANTS, INC. 67995 080126-082826 SERVICE 1115999 68416 $ 11,766.00 163839 10/09/2026 CSG CONSULTANTS, INC. 67996 080126-082826 SERVICES 1115999 68416 $ 7,500.50 163839 10/09/2026 CSG CONSULTANTS, INC. 67997 080126-082826 SERVICES 1115999 68416 $ 868.00 163839 10/09/2026 CSG CONSULTANTS, INC. 67998 080126-082826 SERVICES 1115999 68416 $ 738.00 Attachment 3

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-09-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163839 10/09/2026 CSG CONSULTANTS, INC. 67999 080126-082826 SERVICES 1115999 68416 $ 14,994.00 163839 Total $ 41,069.75
163840 10/09/2026 DEMCO, INC. 7854849 SUPPLIES 1117101 61111 $ 88.14 163840 Total $ 88.14
163841 10/09/2026 DGDG 16 LLC 269316 AUTO PARTS 1115402 61265 $ 444.31 163841 Total $ 444.31
163842 10/09/2026 DUDEK 202608833 072526-082126 SERVICES 1115401 63219 $ 4,326.60 163842 Total $ 4,326.60
163843 10/09/2026 EAGLED'OR AM 100226 REIMBURSEMENT - CPA LICENSE RENEWAL 1112301 62153 $ 409.20 163843 Total $ 409.20
163844 10/09/2026 ECOSANITATION LLC 1610 091826 SERVICE 1115401 63365 $ 5,000.00 163844 Total $ 5,000.00
163845 10/09/2026 EWING IRRIGATION 31964362 SUPPLIES 1115301 61215 $ 1,073.19 163845 Total $ 1,073.19
163846 10/09/2026 FRONTIER CALIFORNIA INC 1884819-092826 092826-102726 SERVICE 6335423 62631 $ 5,794.29 163846 10/09/2026 FRONTIER CALIFORNIA INC 1970036-100226 100226-110126 SERVICE 6212502 62614 $ 400.00 163846 10/09/2026 FRONTIER CALIFORNIA INC 3993048-092826 092826-102726 SERVICE 1114201 62622 $ 129.39 163846 Total $ 6,323.68
163847 10/09/2026 GOLDFARB & LIPMAN 498276 SERVICES THROUGH 083126 1111301 63215 $ 577.50 163847 10/09/2026 GOLDFARB & LIPMAN 498354 SERVICES THROUGH 083126 1111301 63215 $ 6,462.10 163847 Total $ 7,039.60
163848 10/09/2026 GOODYEAR AUTO SERVICE CENTER 0000110082 TIRES 1115402 61265 $ 793.57 163848 Total $ 793.57
163849 10/09/2026 GRAINGER 9078177921 SUPPLIES 1115301 61214 $ 34.81 163849 10/09/2026 GRAINGER 9078177939 SUPPLIES 1115301 61214 $ 571.50 163849 10/09/2026 GRAINGER 9080633135 SUPPLIES 1115401 61275 $ 105.05 163849 10/09/2026 GRAINGER 9080633135 SUPPLIES 1115301 61214 $ 105.05 163849 10/09/2026 GRAINGER 9084134825 SUPPLIES 1115301 61214 $ 309.13 163849 10/09/2026 GRAINGER 9084134825 SUPPLIES 1115401 61275 $ 309.13 163849 10/09/2026 GRAINGER 9085159326 SUPPLIES 6335423 61214 $ 129.67 163849 Total $ 1,564.34
163850 10/09/2026 HOUSEKEYS INC LG260915 SEPTEMBER 2026 SERVICES 1113501 63383 $ 12,500.00 163850 Total $ 12,500.00
163851 10/09/2026 KIER & WRIGHT 326918 072726-083026 110 JOHNSON AVE 1115999 68615 $ 1,467.50 163851 10/09/2026 KIER & WRIGHT 326933 072726-083026 SERVICE 50 LGS RD 1115999 68615 $ 1,371.50 163851 Total $ 2,839.00
163852 10/09/2026 LOS GATOS MEATS & SMOKEHOUSE 41426 HEALTH AND WELLNESS FAIR EXPENSE 1112201 64122 $ 1,968.00 163852 Total $ 1,968.00
163853 10/09/2026 LOS GATOS MUSEUM ASSOCIATION 16-6-3249 101526 SERVICE 2617301 62415 $ 250.00 163853 Total $ 250.00
163854 10/09/2026 MIDWEST TAPE 509431827 DVDS 1117201 61191 $ 42.04 163854 10/09/2026 MIDWEST TAPE 509431828 DVDS 1117201 61191 $ 46.90

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-09-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163854 10/09/2026 MIDWEST TAPE 509433810 DVDS 1117201 61191 $ 17.08 163854 Total $ 106.02
163855 10/09/2026 NEW IMAGE LANDSCAPE COMPANY 155155 AUGUST 2026 LANDSCAPE MAINTENANCE 2365506 63363 $ 140.00 163855 10/09/2026 NEW IMAGE LANDSCAPE COMPANY 155155 AUGUST 2026 LANDSCAPE MAINTENANCE 2355505 63363 $ 375.00 163855 10/09/2026 NEW IMAGE LANDSCAPE COMPANY 155155 AUGUST 2026 LANDSCAPE MAINTENANCE 2345504 63363 $ 559.00 163855 10/09/2026 NEW IMAGE LANDSCAPE COMPANY 155155 AUGUST 2026 LANDSCAPE MAINTENANCE 2335503 63363 $ 46.00 163855 10/09/2026 NEW IMAGE LANDSCAPE COMPANY 155155 AUGUST 2026 LANDSCAPE MAINTENANCE 2325502 63363 $ 609.00 163855 10/09/2026 NEW IMAGE LANDSCAPE COMPANY 155155 AUGUST 2026 LANDSCAPE MAINTENANCE 2315501 63363 $ 93.00 163855 10/09/2026 NEW IMAGE LANDSCAPE COMPANY 155155 AUGUST 2026 LANDSCAPE MAINTENANCE 1115301 63363 $ 10,148.00 163855 Total $ 11,970.00
163856 10/09/2026 NICHOLS CONSULTING ENGINEERS 58205536 SERVICES THRU 072426 4118106 82303 $ 2,577.50 163856 Total $ 2,577.50
163857 10/09/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-120295 AUTO PARTS 1115402 61265 $ 23.34 163857 10/09/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-120360 AUTO PARTS 1115402 61265 $ 34.06 163857 10/09/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-120362 AUTO PARTS 1115402 61265 $ 155.36 163857 10/09/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-120381 AUTO PARTS 1115402 61265 $ 22.44 163857 10/09/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-120500 AUTO PARTS 1115402 61265 $ 23.19 163857 10/09/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-120635 AUTO PARTS 1115402 61265 $ 11.62 163857 10/09/2026 O'REILLY AUTO ENTERPRISES, LLC 2572-120964 AUTO PARTS 1115402 61265 $ 125.49 163857 Total $ 395.50
163858 10/09/2026 OCCUPATIONAL HEALTH CENTERS OF CA 92398877 090326 SERVICE 1112201 64431 $ 136.00 163858 Total $ 136.00
163859 10/09/2026 ODP BUSINESS SOLUTIONS 477582497001 SUPPLIES 1113201 61111 $ 91.11 163859 10/09/2026 ODP BUSINESS SOLUTIONS 477640205001 SUPPLIES 1113201 61111 $ 55.45 163859 10/09/2026 ODP BUSINESS SOLUTIONS 479683523001 SUPPLIES 1114201 61111 $ 53.10 163859 10/09/2026 ODP BUSINESS SOLUTIONS 479684205001 SUPPLIES 1114201 61111 $ 7.24 163859 10/09/2026 ODP BUSINESS SOLUTIONS 479694099001 SUPPLIES 1115201 61111 $ 68.50 163859 10/09/2026 ODP BUSINESS SOLUTIONS 479696112001 SUPPLIES 6335423 61112 $ 15.47 163859 10/09/2026 ODP BUSINESS SOLUTIONS 481308433001 SUPPLIES 1112401 61111 $ 14.46 163859 10/09/2026 ODP BUSINESS SOLUTIONS 481308433001 SUPPLIES 1111201 61111 $ 14.46 163859 10/09/2026 ODP BUSINESS SOLUTIONS 481308433001 SUPPLIES 1111101 61111 $ 14.46 163859 10/09/2026 ODP BUSINESS SOLUTIONS 479694099001-01 SUPPLIES 6335423 61112 $ 3.91 163859 10/09/2026 ODP BUSINESS SOLUTIONS 481308433001-01 SUPPLIES 1111301 61111 $ 119.25 163859 Total $ 457.41
163860 10/09/2026 PACIFIC GAS & ELECTRIC 02259-100126 082726-092526 SERVICE 1115401 62621 $ 218.94 163860 10/09/2026 PACIFIC GAS & ELECTRIC 09379-100126 082626-092426 SERVICE 6335423 62611 $ 701.56 163860 10/09/2026 PACIFIC GAS & ELECTRIC 09379-100126 082626-092426 SERVICE 6335423 62612 $ 85.78 163860 10/09/2026 PACIFIC GAS & ELECTRIC 09379-100126 082626-092426 SERVICE 1111201 72111 $ 13,002.80 163860 10/09/2026 PACIFIC GAS & ELECTRIC 32085-092426 081826-091626 SERVICE 6335423 62611 $ 25,076.17 163860 10/09/2026 PACIFIC GAS & ELECTRIC 32085-092426 081826-091626 SERVICE 6335423 62612 $ 3,135.32 163860 10/09/2026 PACIFIC GAS & ELECTRIC 50296-100126 082626-092426 SERVICE 1115301 62611 $ 45.05 163860 10/09/2026 PACIFIC GAS & ELECTRIC 73663-092426 081926-091726 SERVICE 1115401 62621 $ 14,910.83

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-09-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163860 Total $ 57,176.45
163861 10/09/2026 PACIFIC WATER ART INC 78696 SEPTEMBER 2026 SERVICES 1115301 62378 $ 7,668.00 163861 Total $ 7,668.00
163862 10/09/2026 QUADIENT INC 18196193 POSTAGE METER INK 1111201 61111 $ 386.21 163862 Total $ 386.21
163863 10/09/2026 QUADIENT LEASING USA INC Q2530343 101526-011427 POSTAGE LEASE 1111201 62307 $ 1,557.25 163863 Total $ 1,557.25
163864 10/09/2026 RURAL SUPPLY HARDWARE INC 8274 SUPPLIES 6335423 61214 $ 54.14 163864 Total $ 54.14
163865 10/09/2026 SAFETY-KLEEN SYSTEMS, INC. 100863693 SUPPLIES 1115402 61265 $ 240.00 163865 Total $ 240.00
163866 10/09/2026 SAN JOSE WATER COMPANY 04216-092226 081826-091726 SERVICE 1115301 62613 $ 5,492.67 163866 10/09/2026 SAN JOSE WATER COMPANY 06660-092226 081826-092226 SERVICE 6335423 62613 $ 3,507.20 163866 10/09/2026 SAN JOSE WATER COMPANY 08501-092226 081826-091726 SERVICE 1115301 62613 $ 1,691.50 163866 10/09/2026 SAN JOSE WATER COMPANY 10300-092226 082126-092126 SERVICE 2225203 62613 $ 845.07 163866 10/09/2026 SAN JOSE WATER COMPANY 22767-092226 081826-091726 SERVICE 1115301 62613 $ 10,591.64 163866 10/09/2026 SAN JOSE WATER COMPANY 26334-092226 081726-091526 SERVICE 1115301 62613 $ 7,383.03 163866 10/09/2026 SAN JOSE WATER COMPANY 36725-092226 081726-092226 SERVICE 1115301 62613 $ 1,841.64 163866 10/09/2026 SAN JOSE WATER COMPANY 49851-100126 073026-092926 SERVICE 6335423 62613 $ 2,059.30 163866 10/09/2026 SAN JOSE WATER COMPANY 55379-092226 081826-092226 SERVICE 1115301 62613 $ 4,060.26 163866 10/09/2026 SAN JOSE WATER COMPANY 69838-092226 081826-091726 SERVICE 1115301 62613 $ 4,461.71 163866 Total $ 41,934.02
163867 10/09/2026 SIERRA BUILD GROUP INV-001 LOS GATOS MOLD REMEDIATION 4128736 82405 $ 45,950.00 163867 Total $ 45,950.00
163868 10/09/2026 STATE OF CALIFORNIA DEPT OF JUSTICE 070567 AUGUST 2026 FINGERPRINTING 6335423 63351 $ 64.00 163868 Total $ 64.00
163869 10/09/2026 SUMMIT UNIFORMS LLC 42081-1 UNIFORMS REVISED INV TOTAL 1114301 61165 $ 128.70 163869 10/09/2026 SUMMIT UNIFORMS LLC CM-20 CREDIT MEMO 1114301 61165 $ (111.10) 163869 Total $ 17.60
163870 10/09/2026 T-MOBILE USA, INC 9664777339 TIMING ADVANCE 1114201 62622 $ 50.00 163870 Total $ 50.00
163871 10/09/2026 URBAN37 INC 2326 080426 SERVICE 1113999 68416 $ 4,379.68 163871 10/09/2026 URBAN37 INC 2327 081026 SERVICE 1113999 68416 $ 3,642.28 163871 10/09/2026 URBAN37 INC 2328 082026 SERVICE 1113999 68416 $ 685.79 163871 10/09/2026 URBAN37 INC 2329 091426 SERVICE 1113999 68416 $ 668.86 163871 10/09/2026 URBAN37 INC 2347 091726 SERVICE 1113999 68416 $ 330.00 163871 10/09/2026 URBAN37 INC 2348 091726 SERVICE 1113999 68416 $ 397.87 163871 10/09/2026 URBAN37 INC 2349 091726 SERVICE 1113999 68416 $ 601.11 163871 10/09/2026 URBAN37 INC 2350 091726 SERVICE 1113999 68416 $ 939.85 163871 Total $ 11,645.44
163872 10/09/2026 US BANK 9783-092226 SEPTEMBER 2026 CAL CARD PAYMENT 111 21115 $ 24,287.99 163872 Total $ 24,287.99

ITEM NO. 5.

ACCOUNTS PAYABLE CHECK REGISTER
CHECK DATE 10-09-26

CHECK NUMBER CHECK DATE VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 163873 10/09/2026 VICKI L BLANDIN LG28-26 TRANSCRIPTION SERVICES 1113201 62310 $ 75.00 163873 Total $ 75.00
163874 10/09/2026 WEST VALLEY SANITATION DISTRICT SS2156 070126-063027 SERVICES 6335423 62171 $ 18,596.48 163874 Total $ 18,596.48
163875 10/09/2026 WEST VALLEY STORMWATER AUTHORITY 2027-02 FY2026-27 WVSA ASSESSMENT 2225203 62151 $ 20,898.00 163875 Total $ 20,898.00
163876 10/09/2026 WESTERN STATES OIL COMPANY 870657 FUEL DELIVERY 09-16-26 1115402 61262 $ 31,130.59 163876 Total $ 31,130.59
Grand Total $ 556,341.65

ITEM NO. 5.

Town of Los Gatos Check Date 10/02/26 Total Number of Employees Location Total Payroll
1101 - TOWN COUNCIL 1,425.00 5
1301 - TOWN ATTORNEY 11,983.00 1
2101 - TOWN MANAGER 39,385.00 7
2105 - EMERGENCY PREPAREDNESS 8,977.00 2
2106 - ECONOMIC VITALITY 6,005.00 1
2201 - HUMAN RESOURCES 22,825.00 3
2301 - FINANCE 50,670.00 8
2401 - CLERK ADMINISTRATION 17,098.00 3
2501 - INFORMATION TECHNOLOGY 18,024.00 3
3101 - COMMUNITY DEVELOPMENT 119,988.00 21
4101 - POLICE 424,251.00 58
5101 - PARKS AND PUBLIC WORKS 180,577.00 40
7101 - LIBRARY 67,762.00 8
968,970.00 160
Attachment 4

ITEM NO. 5.

PREPARED BY: Diane Howard
Finance Division 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:

ITEM NO: 6
DATE: October 7, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Execute a First Amendment with Foster and Foster Consulting Actuaries, Inc., to Amend the Scope of Services RECOMMENDATION: Authorize the Town Manager to execute a First Amendment with Foster and Foster Consulting Actuaries, Inc., to amend the scope of services.

FISCAL IMPACT:

This First Amendment will increase the scope of services only. Sufficient budget is available in Administrative Services Townwide program (1111201) the FY 2026-2027 operating budget, and the $5,600 cost of the additional services will be covered by the $20,000 contingency included in the original agreement.

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:

In October 2021, the Town of Los Gatos sent a Request for Proposals (RFP) for actuarial consulting services to sixteen qualified firms known to provide actuarial services. The opportunity was also promoted on the Town’s website, What’s New, and other social media platforms. Three firms responded with proposals: Actuarial Retirement Consulting, Precision Actuarial Inc., and Bartel Associates, LLC.

ITEM NO. 6.

PAGE 2 OF 2
SUBJECT: First Amendment with Foster and Foster Consulting Actuaries, Inc.

DATE: October 7, 2026
A selection panel consisting of the Finance Commission Chair, the Finance Director, Assistant Town Manager, Finance and Budget Manager, and Finance Administrative Analyst reviewed and scored the three proposals. The firms were evaluated based on their technical expertise, qualified personnel, and responsiveness to the RFP. Based upon the firm’s technical expertise, proposal, interview, and references, the panel selected Bartel Associates, LLC. This selection was approved by Town Council at its January 18, 2022 meeting. At the December 20, 2022 Council was informed that Bartel Associates, LLC had been acquired by Foster and Foster Consulting Actuaries, Inc. At that same Council meeting, an Assignment of Agreement was approved assigning the Bartel agreement to Foster and Foster.

DISCUSSION:

While working with Foster & Foster, staff identified a need to clarify the scope of work for the Fiscal Year 2025–26 reports. Although Section 1 on page 2 of the original agreement states that “The report for the year ending June 30, 2026, will be done after June 30, 2026,” the GASB 78 and GASB 68 report fee sections on pages 15 and 17 did not include the fees associated with preparing these reports. This created uncertainty regarding whether the reports were included in the original scope of work.

The proposed First Amendment will clarify the scope of work by explicitly including preparation of the reports listed below and incorporating the associated fees. The additional costs will be covered by the contingency included in the original agreement; therefore, the amendment will not increase the total contract amount.
 June 30, 2026 GASB 68 report for Town’s CalPERS cost-sharing plan  June 30, 2026 GASB 75 report for Town’s retiree healthcare plan CONCLUSION:

Staff recommends authorizing the Town Manager to execute a First Amendment with Foster and Foster to amend the scope of services.

ENVIRONMENTAL ASSESSMENT:

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

ATTACHMENTS:

1. First Amendment to Foster and Foster Agreement

2. Assignment Agreement

3. Original Bartel Agreement

ITEM NO. 6.

AMENDMENT TO AGREEMENT

Amendment to Agreement
Foster & Foster Consulting Actuaries, Inc.

This AMENDMENT TO AGREEMENT amends that certain agreement titled Foster and Foster Consulting Actuaries Inc Assignment Agreement dated December 20, 2022, made by and between the Town of Los Gatos, ("Town,") and Foster & Foster Consulting Actuaries, Inc. (“Contractor”), a Corporation and whose address is 13420 Parker Commons Boulevard, Suite 104 Fort Myers FL 33912.

A. Town and Contractor entered into an Assignment Agreement for Services on December 20, 2022 (“Agreement”).

B. The parties wish to amend the Agreement in order to add additional scope of work and increase compensation.

AMENDMENT
A. Section 2.1: Scope of Services is hereby amended to include the services listed in Exhibit A.

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

Attachments:

A - Additional Scope of Services Proposal
Attachment 1

ITEM NO. 6.

TOWN OF LOS GATOS Foster and Foster Consulting Actuaries, Inc **signature_210093**

SIGNATURE
Chris Constantin

FULL NAME
Town Manager
TITLE
**date_signed_210093**

DATE SIGNED
**signature_210094**

SIGNATURE
Bradley Heinrichs

CONTRACTOR SIGNATORY'S FULL NAME
CEO

CONTRACTOR SIGNATORY'S TITLE
**date_signed_210094**

DATE SIGNED
Approved as to form:
**signature_210092**

SIGNATURE
Gabrielle Whelan

FULL NAME
Town Attorney
TITLE
**date_signed_210092**

DATE SIGNED
The execution date is the date on which the last party has signed.

ITEM NO. 6.

Exhibits List
A - Additional Scope of Services Proposal

ITEM NO. 6.

Exhibit A
Additional Scope of Services Proposal

ITEM NO. 6.
2215 Chestnut Street, Suite 2 San Francisco, CA 94123 · (650) 377-1600 · www.foster-foster.com August 25, 2026
Diane Howard
Finance Division Manager
Town of Los Gatos
Re: Actuarial Services – June 30, 2026 GASB 68 and GASB 75 Reporting Dear Ms. Howard:

Foster & Foster, following Assignment of Agreement, entered into an actuarial services agreement on January 31, 2022 which remains in effect until January 31, 2027.

As part of this agreement, the fee schedule did not include performance of the following reports which are expected to be completed prior to expiration of the project:
• June 30, 2026 GASB 68 report for Town’s CalPERS cost-sharing plan • June 30, 2026 GASB 75 report for Town’s retiree healthcare plan Foster & Foster has prepared these reports for the Town for the past several years and is prepared to provide the Town with these actuarial consulting services with expected completion in September 2026.

FEES
The schedule below includes our fixed fee pricing for these reports which reflect the same pricing established under the current agreement for the June 30, 2025 reporting.

Project Fees
June 30, 2026 GASB 75 report 3,800
June 30, 2026 GASB 68 Report for the CalPERS pension plan 1,800 Total $ 5,600
Sincerely,
Drew Ballard, FSA, EA, MAAA
Senior Consulting Actuary

ITEM NO. 6.

Foster and Foster Consulting Actuaries Inc. December 2022

ASSIGNMENT OF AGREEMENT
This ASSIGNMENT OF AGREEMENT is dated for identification this 20th day of December 2022 and assigns that certain agreement for professional actuarial services dated January 31, 2022, made by and between the Town of Los Gatos, ("Town,") , Bartel Associates, LLC.(“Consultant.”) to Foster and Foster Consulting Actuaries, Inc. (“Foster”).

RECITALS
A. Town and Consultant entered into an actuarialservices Agreement on January 31, 2022, (“Agreement”), a copy of which is attached hereto and incorporated by reference as Exhibit A.

B. Because Bartel Associates, LLC, was acquired by Foster and Foster Consulting Actuaries, Inc., the parties now wish to assign the Agreement to Foster.

ASSIGNMENT

1. The parties agree that the Agreement is assigned to Foster.

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

IN WITNESS WHEREOF, the parties have executed this Assignment Agreement.

Town of Los Gatos: Foster and Foster Consulting Actuaries, Inc.:

By: By:____________________________
Laurel Prevetti, Town Manager Bradley Heinrichs
CEO
By:____________________________
Jonathan R. Davidson, Esquire
Chief Legal Officer
Bartel:

By:____________________________
Mary Beth Redding
Member for Manager-Managed LLC
DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

Foster and Foster Consulting Actuaries Inc. December 2022 Foster and Foster Consulting Actuaries Inc.

Department Approval:

Gitta Ungvari
Finance Director
Approved as to Form: Attest:

Gabrielle Whelan, Town Attorney Wendy Wood, CMC, Town Clerk DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

DocuSign Envelope ID: F0E30F30-A54B-427B-A905-23C6ACA5E617

ITEM NO. 6.

PREPARED BY: Kristina Alfaro
Administrative Services Director
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, and Information Technology Director
110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 10/20/2026
ITEM NO: 7
DATE: October 8, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager or Designee to Enter into a Three-Year Agreement with ClearGov for Budget and Planning Suite and Personnel Budgeting Software in an Amount Not to Exceed $175,366
RECOMMENDATION: Authorize the Town Manager or designee to execute a three year agreement with ClearGov for Budget and Planning Suite and Personnel Budgeting Software in an amount not to exceed $175,366; and approve a FY 2026-27 budget adjustment of $75,090, including the necessary transfer from the General Fund and corresponding expenditure appropriation in the Information Technology Internal Service Fund, funded by General Fund unassigned fund balance. Expenditures in subsequent fiscal years shall be subject to annual appropriations.

FISCAL IMPACT:

The proposed action will authorize a contract in the amount of $175,366 for the budgeting and planning suite and personnel budgeting software for October 2026 through 2029. A budget adjustment for the costs related to the first year of the contract of $75,090 is recommended for the first year of these services, including implementation costs, in the Information Technology budget from General Fund unassigned fund balance. If approved, the second and third year costs will be included in the IT Internal Service Fund budget for those subsequent years and charged out to the Finance Department.

STRATEGIC PRIORITY:

ITEM NO. 7.

PAGE 2 OF 5
SUBJECT: Authorize the Town Manager or designee to enter into a Three-Year Agreement with ClearGov for the Budget Planning Suite and Personnel Budgeting Software not to exceed $175,366
DATE: October 20, 2026
Efficient, and accurate budget and salary reports supports the Council’s Strategic Priority of Fiscal Stability by ensuring the most effective use of staff resources and ensuring accuracy in financial reporting.

BACKGROUND:

Finance Commission at their September 14, 2026 meeting recommended that staff proceed with the recommended purchase of the ClearGov Budget and Planning Suite and consider the addition of the ACFR or Financial Reporting module after the successful implementation of the budget software. They requested that staff return after implementation to share any efficiencies gained by the implementation. The personnel budgeting component was not included in the Finance Commission review. The decision to include that component was made after the item was presented to the Commission and is discussed later in this report.

The Town of Los Gatos Finance Department creates and collates robust and informative operating and capital improvement program (CIP) budgets that include annual adoption of the Town's revenues and expenditures for all its funds and the capital improvement program for the upcoming year's budget. The Town’s budget document is over 400 pages of informational, narrative, and budgetary material, coming from the Town’s Enterprise Resource Planning (ERP) software, Tyler Munis. Additionally, salary projections and personnel budgeting were completed in Tyler Munis for the FY 2026-27 budget.

After the new ERP Software implementation was complete, Finance staff began to research the ability to automate the budget document and CIP.

In addition, as part of past Finance Commission meetings, staff were asked to research the possibility of bringing the production of the Annual Comprehensive Financial Report (ACFR) in house. Staff had originally explored the use of the Town’s new ERP add-on ACFR Builder product. However, after a review of the product, it was determined that this product would not meet the Town’s needs. As part of the review of ClearGov’s suite of products staff were informed they also had an ACFR (Financial Report) product. Staff then included this product in their review.

The Town’s current ERP system as purchased does not include the modules necessary to produce a budget/CIP book or ACFR.

DISCUSSION:

Currently, the annual budget is entered into Excel and then into the Town's ERP software, then downloaded back and organized with Excel and Word and then organized again into one Adobe PDF document, with page numbers and table of contents placed manually. ClearGov software

ITEM NO. 7.

PAGE 3 OF 5
SUBJECT: Authorize the Town Manager or designee to enter into a Three-Year Agreement with ClearGov for the Budget Planning Suite and Personnel Budgeting Software not to exceed $175,366
DATE: October 20, 2026
would modernize the budget preparation process by preparing the budget with the software and transferring the information directly from Tyler to the Town's website into one document without all of the additional steps. The CIP could also be compiled and completed with the software.

In preparation for the FY 2027-28 budgetary process, the Finance Department reviewed ClearGov’s and two other vendors’ entire suite of solutions with a focus on the budget and CIP document solutions. ClearGov, in tandem with the Town's new ERP system, Tyler, could produce, condense, consolidate, and share the Town's budgetary and CIP financial information seamlessly on the Town's website and create a forward-thinking budget. The Town's Finance budget webpage would provide a menu for easy access to all information related to the budget.

The webpage would also contain an "Al-assistant" to aid the public in accessing all the Town's budgetary and capital improvement program information. ClearGov software would also track those capital improvement projects. By transforming information directly from Tyler to the budget book on the webpage, room for error would drop significantly. This information would keep up to date with budgetary changes as it’s adaptive with the ERP system. Of the other two systems reviewed, one no longer offers the budget document software as a stand-alone purchase, the Town would need to purchase its’ entire enterprise resource planning system.

The other only offered budget document software and not the full integrative suite offered by Cleargov.

The Finance Department believes that ClearGov budget book software, working with Tyler, will accomplish transparency by presenting the Town’s annual budget in a more informative, adaptive, user-friendly manner on the Town's website. The Table of Contents, PDF, and Share menu structure on the left side of the screen page is a common website menu structure and is user-friendly. The budget is completely searchable, shareable, and contains a Reader's Guide for the website guest. The ClearGov budget book software allows the public to ask specific questions in the Town of Los Gatos Assistant Al-generated box and finds answers in less than two seconds or points you to a Google search if it is unable to find a particular subject.

The intent of the purchase of ClearGov Budgeting and Planning Suite software is to modernize the Town of Los Gatos’s budgetary processes and presentation to the Finance Commission, Town Council, Town Departments, and the public, and to create an interactive, transparent budget book on the Town's website. The Finance Department will also utilize the ClearGov book software to present the FY 2027-28 and all upcoming years' budget books. ClearGov budget book will be helpful when the Town submits the budget for a future GFOA's Budget Distinction Award, as it includes a checklist to ensure compliance. Two examples of budget books produced with ClearGov are from the City of Campbell and the City of Manteca, and they are linked below:

ITEM NO. 7.

PAGE 4 OF 5
SUBJECT: Authorize the Town Manager or designee to enter into a Three-Year Agreement with ClearGov for the Budget Planning Suite and Personnel Budgeting Software not to exceed $175,366
DATE: October 20, 2026
 City of Campbell FY 2026-27 Proposed Budget
 City of Manteca FY 2026-27 Final Proposed Budget
Personnel Budgeting
ClearGov’s suite of products also includes personnel budgeting. Staff had used the ERP’s salary projections module in completing projections for FY 2026-27. However, the software is not intuitive or user friendly, this results in significant staff time to complete updates or run different forecasts.

After viewing real-life experiences with the software, staff is recommending the purchase of this module due to the ease of use, modeling capabilities, and time savings that will be gained by completing salary projections with ClearGov.

Financial Reporting (ACFR)
ClearGov’s suite of products also includes a Financial Reporting solution for the ACFR. Although staff found the software easy to use and implement, this change to internal reporting would result in additional costs related to the software implementation and annual software costs and additional staff time that might result in a reporting delay in the first year of ACFR production.

If purchased, staff estimates the first ACFR to be produced by the ClearGov software would be the FY 2027-28 ACFR. Cost for this solution is $21,440 for the first year, including a one-time deployment fee and $14,000+ in annual costs when a 5% escalation is included.

The proposed new Financial Auditor contract, also on the agenda this evening, has costs related to the production of $3,998.50 that could be reduced annually should the Town decide to proceed with ACFR product. This would result in a net increase in contract costs to produce the ACFR in house of $17,441.50 in the first year. Subsequent years would see estimated net cost to produce the ACFR from $10,072 to $10,775.

Finance Commission and our current and future financial auditors all agreed it is the best practice for an agency to produce their own ACFR. You will note that pricing for the ACFR module is included but is not part of the current contract request. Instead, staff will stagger the implementations and proceed with the ACFR module only after a successful budget planning software implementation as an initial assessment of the vendor. Should staff choose to proceed with building the ACFR using the ClearGov software, staff will return for a contract and budget amendment at that time. This decision is currently estimated to occur in the early spring.

The ClearGov solution is being brought forward based on prior recommendations that staff look for a solution to bring the ACFR preparation in-house to mitigate independence concerns from the Finance Commission. This is due to the Town’s external auditors preparing and reviewing

ITEM NO. 7.

PAGE 5 OF 5
SUBJECT: Authorize the Town Manager or designee to enter into a Three-Year Agreement with ClearGov for the Budget Planning Suite and Personnel Budgeting Software not to exceed $175,366
DATE: October 20, 2026
the ACFR. It is important to note that the Town’s auditors do have mitigating controls to maintain independence. This includes having an independent third-party review of the ACFR.

CONCLUSION:

Staff recommends the purchase of the budget and planning suite and personnel budgeting.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. ClearGov Service Order - Town of Los Gatos

2. ClearGov Agreement

ITEM NO. 7.

Service Order
2 Mill & Main; Suite 630; Maynard, MA 01754
Created By Kirsten Holle Order Date Oct 8, 2026
Contact Phone (858) 239-0891
Order Valid If Signed By Oct 31, 2026 Contact Email [email protected] Customer Information
Customer Los Gatos Customer Annual Budgeted Expenditures - All Funds Total $82,000,000 Address 110 E. Main Street Contact Chris Constantin Billing Contact Kristina Alfaro City, St, Zip Los Gatos, CA 95030 Title Town Manager Title Administrative Services Director Phone 408-354-6835 Email [email protected] Email [email protected]

PO (Y/N)
The One-time Fees & Professional Services you will receive are: Net Service Fees ClearGov Implementation: Includes activation, onboarding, and training for ClearGov solutions ($ 28,504) Total ClearGov One-Time Net Service Fee - Billed ONE-TIME ($ 28,504) The Subscription Services you will receive and the Fees for those Services are: Net Service Fees ClearGov Platform ($ 9,633)
ClearGov Operational Budgeting ($ 10,452)
ClearGov Personnel Budgeting ($ 9,633)
ClearGov Capital Budgeting ($ 9,633)
ClearGov Digital Budget Book ($ 7,235)
Data Connection: ERP
Total ClearGov Subscription Net Service Fee - Billed ANNUALLY IN ADVANCE ($ 46,586) ClearGov will provide your Services according to this schedule:

Period Start Date End Date Description
Setup Nov 1, 2026 Nov 1, 2026 ClearGov Setup Services
Initial Nov 1, 2026 Oct 31, 2029 ClearGov Subscription Services To be clear, you will be billed as follows:

Billing Date(s) Amount(s) Notes
Nov 1, 2026 $75,090 Annual Subscription Fee ($46,586) + One time Services ($28,504) Nov 1, 2027 $48,915 Annual Subscription Fee
Nov 1, 2028 $51,361 Annual Subscription Fee
Additional subscription years and/or renewals will be billed annually in accordance with pricing and terms set forth herein.

Billing Terms & Conditions
Valid Until Oct 31, 2026 Pricing set forth herein is valid only if ClearGov Service Order is executed on or before this date.

Payment Net 30 All invoices are due Net 30 days from the date of invoice.

Rate
Increase 5% per annum The Annual Subscription Service Fee shall automatically increase by this amount.

ATTACHMENT 1

ITEM NO. 7.

General Terms & Conditions
Statement of Work
ClearGov and Customer mutually agree to the ClearGov Service activation and onboarding process set forth in the attached Statement of Work. Please note that ClearGov will not activate and/or implement services for any Customer with outstanding balance past due over 90 days for any previous subscription services.

Taxes
The Service Fees and Billing amounts set forth above in this ClearGov Service Order DO NOT include applicable taxes. In accordance with the laws of the applicable state, in the event that sales, use or other taxes apply to this transaction, ClearGov shall include such taxes on applicable invoices and Customer is solely responsible for such taxes, unless documentation is provided to ClearGov demonstrating Customer's exemption from such taxes.

Pricing Conditions All fees listed herein reflect Net Service Fees after application of bundled and/or discretionary discounts. Pricing is interdependent therefore the removal or modification of any product or service may result in the recalculation of pricing.

Term & Termination
Subject to the termination rights and obligations set forth in the ClearGov BCM Service Agreement, this ClearGov Service Order commences upon the Order Date set forth herein and shall continue until the completion of the Service Period(s) for the Service(s) set forth herein. Each Service shall commence upon the Start Date set forth herein and shall continue until the completion of the applicable Service Period.

Renewal Option After the Initial Period, Customer shall have the option to renew this Service Order on an annual basis in accordance with the terms set forth herein by providing written notice of such renewal prior to the end of the then current annual term.

Appropriations Customer shall have the option to terminate this ClearGov Service Order in advance of any annual renewal in the event that the applicable appropriating body does not appropriate funds for such upcoming renewal period.

Agreement
The signature herein affirms your commitment to pay for the Service(s) ordered in accordance with the terms set forth in this ClearGov Service Order and also acknowledges that you have read and agree to the terms and conditions set forth in the ClearGov BCM Service Agreement found at the following URL: http://www.ClearGov.com/terms-and-conditions. This Service Order incorporates by reference the terms of such ClearGov BCM Service Agreement.

Customer ClearGov, Inc.

Signature Signature
Name Chris Constantin Name Amita Rostamian
Title Town Manager Title Chief Financial Officer
Please e-mail signed Service Order to [email protected] or Fax to (774) 759-3045 Order Type (ClearGov Internal Use Only)
Select Order Type for this Service Order NL If XS: Original Service Order Date

ITEM NO. 7.

Statement of Work
This Statement of Work outlines the roles and responsibilities by both ClearGov and Customer required for the activation and onboarding of the ClearGov Service.

ClearGov will begin this onboarding process upon execution of this Service Order. All onboarding services and communications will be provided through remote methods - email, phone, and web conferencing.

ClearGov Responsibilities
- ClearGov will activate ClearGov Service subscription(s) as of the applicable Start Date(s). ClearGov will create the initial Admin User account, and the Customer Admin User will be responsible for creating additional User accounts. - ClearGov will assign an Implementation Manager (IM) responsible for managing the activation and onboarding process. ClearGov IM will coordinate with other ClearGov resources, as necessary.
- ClearGov IM will provide a Kickoff Call scheduling link to the Customer’s Primary Contact. Customer should schedule Kickoff Call within two weeks after the Service Order has been executed.
- If Customer is subscribing to any products that require data onboarding:
- ClearGov IM will provide a Data Discovery Call scheduling link to the Customer’s Primary Contact. Customer should schedule Data Discovery Call based on the availability of Customer’s staff.
- ClearGov will provide Customer with financial data requirements and instructions, based on the ClearGov Service subscription(s). - ClearGov will review financial data files and confirm that data is complete, or request additional information, if necessary. Once complete financial data files have been received, ClearGov will format the data, upload it to the ClearGov platform and complete an initial mapping of the data. - After initial mapping, ClearGov will schedule a Data Review call with a ClearGov Data Onboarding Consultant (DOC), who will present how the data was mapped, ask for feedback, and address open questions. Depending upon Customer feedback and the complexity of data mapping requests, there may be additional follow-up calls or emails required to complete the data onboarding process. - ClearGov will inform Customer of all training, learning, and support options. ClearGov recommends all Users attend ClearGov Academy training sessions and/or read Support Center articles before using the ClearGov Service to ensure a quick ramp and success. As needed, ClearGov will design and deliver customized remote training and configuration workshops for Admins and one for End Users - via video conference - and these sessions will be recorded for future reference. - ClearGov will make commercially reasonable efforts to complete the onboarding/activation process in a timely fashion, provided Customer submits financial data files and responds to review and approval requests by ClearGov in a similarly timely fashion. Any delay by Customer in meeting these deliverable requirements may result in a delayed data onboarding process. Any such delay shall not affect or change the Service Period(s) as set forth in the applicable Service Order.

Customer Responsibilities
- Customer's Primary Contact will coordinate the necessary personnel to attend the Kickoff and Data Discovery Calls within two weeks after the Service Order has been executed. If Customer needs to change the date/time of either of these calls, the Primary Contact will notify the ClearGov IM at least one business day in advance. - If Customer is subscribing to any products that require data onboarding:
- Customer will provide a complete set of requested financial data files (revenue, expense, chart of accounts, etc.) to ClearGov in accordance with the requirements provided by ClearGov.
- Customer's Primary Contact will coordinate the necessary personnel to attend the Data Discovery and Data Review calls. It is recommended that all stakeholders with input on how data should be mapped should attend. Based on these calls and any subsequent internal review, Customer shall provide a detailed list of data mapping requirements and requested changes to data mapping drafts in a timely manner, and Customer will approve the final data mapping, once completed to Customer’s satisfaction.
- Customer will complete recommended on-demand training modules in advance of customized training & configuration workshops. - Customer shall be solely responsible for importing and/or inputting applicable text narrative, custom graphics, performance metrics, capital requests, personnel data, and other such information for capital budget, personnel budget, budget books, projects, dashboards, etc.

ITEM NO. 7.

ClearGov BCM Service Agreement
ClearGov, Inc. Service Agreement ver. 02.02.23 Page 1 of 4 This ClearGov BCM Service Agreement (the “Agreement”) is made and entered into by and between ClearGov, Inc. (“ClearGov”), a Delaware corporation with its principal offices at 2 Mill & Main; Suite 630, Maynard, MA 01754 and Customer (as defined in the applicable ClearGov Service Order) (each a “Party” and collectively the “Parties”). This Agreement governs the terms and conditions under which Customer may utilize the ClearGov Service as set forth herein and as specified in one or more applicable ClearGov Service Order(s) executed by Customer in connection herewith and incorporated herein (the “ClearGov Service Order(s)”). In event of any conflict between the terms set forth in this Agreement and any terms or conditions of any applicable ClearGov Service Order, the terms of the applicable ClearGov Service Order shall prevail.

WHEREAS ClearGov owns and operates the ClearGov Service, a Webbased SaaS solution that includes a variety of ClearGov App(s) and provides various features and functionality via such ClearGov App(s); and
WHEREAS Customer wishes to utilize the ClearGov Service in order to convey fiscal budget, key metrics and other information to the public as well as to leverage the functionality of such ClearGov App(s); NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, ClearGov and Customer hereby agree as follows:
1) Definitions. Capitalized terms used in this Agreement, and not otherwise defined herein, shall have the following meanings:

1.1) "Account" means an access point for the ClearGov Service that requires registration by the Customer.

1.2) “ClearGov API” means an application programming
interface that provides access to specified content and functionality within certain ClearGov Apps.

1.3) “ClearGov Apps” means collectively all of the Web
applications hosted by ClearGov and available via the
ClearGov Service, including but not limited to the applications listed in any applicable ClearGov Service Order. All features, functionality, reports, etc. for each ClearGov App are included as material elements of the applicable ClearGov App.

ClearGov may modify, combine, add or delete ClearGov Apps from the ClearGov Service from time to time at its sole discretion, provided that in the event that ClearGov
terminates or deletes any ClearGov App to which Customer is actively subscribing, ClearGov shall provide a pro-rata refund for the applicable portion of the Subscription Service Fee for the remainder of the then current Service Period.

1.4) “ClearGov Data” means any aggregated and normalized key metrics and benchmarking data collected by ClearGov for the delivery of the ClearGov Service.

1.5) “ClearGov Service” means the complete set of ClearGov software and related materials including but not limited to the ClearGov Apps, ClearGov Data, ClearGov Web Site, the
Documentation and the Software.

1.6) “ClearGov Web Site” means the Web site owned and
operated by ClearGov and made available at the following URL: http://www.ClearGov.com and/or any successor site(s).

1.7) “Customer PDF” means one or more PDF files of Customer’s digital documents created by Customer using the ClearGov Apps.

1.8) “Customer Data” means any data provided to ClearGov by or on behalf of Customer or any data entered or uploaded into the ClearGov Service by or on behalf of Customer,
including Sensitive Data entered or provided by Customer.

Customer Data specifically excludes ClearGov Data as well as any anonymized, customized, modified or derivative works related to the Customer Data.

1.9) “Customer State” means the state, commonwealth or
territory in which the Customer is located.

1.10) “Customer Web Site” means any Web site owned and
operated by Customer.

1.11) "Documentation" means any accompanying proprietary documentation made available to Customer by ClearGov for use with the ClearGov Service, including any documentation available online or otherwise.

1.12) “Sensitive Data: means any Customer Data that may reasonably be deemed sensitive and/or private in nature, including but not limited to personal wage garnishments, individual healthcare-related expenses, data protected by HIPAA, etc.

1.13) "Software" means the source code and/or other code which are material elements of the ClearGov Apps and ClearGov Service.
2) Service Usage & Licenses.

2.1) Account Password and Security. Customer shall protect its passwords and take full responsibility for Customer's own, as well as any third-party, use of the Customer Account(s).

Customer is solely responsible for any and all activities that occur under such Customer Account(s), except for any
activities performed by ClearGov as set forth herein. Customer agrees to notify ClearGov immediately upon learning of any unauthorized use of a Customer Account or any other breach of security. From time to time, ClearGov's support staff may log in to the Customer Account in order to maintain or
improve service, including providing Customer assistance with technical or billing issues. Customer hereby acknowledges and consents to such access.

2.2) ClearGov License. Subject to the terms and conditions of this Agreement and as specifically set forth in the applicable ClearGov Service Order(s), ClearGov grants Customer a
limited, revocable, non-exclusive, non-transferable, nondistributable, worldwide license to utilize the ClearGov Service for the following functionality:
a) Content Delivery. Customer may integrate, link and
publish applicable public-facing content from the
applicable ClearGov Apps within one or more Customer
Web Site(s);
b) Application Access. Customer may access the ClearGov Apps via Customer’s Account to utilize the functionality provided within such ClearGov Apps; and
c) API Access. Customer may access the ClearGov API to
distribute and display public-facing content from the
ClearGov Apps within one or more Customer Web Site(s).
3) Term and Termination.

3.1) Term. The duration of this Agreement shall be defined in accordance with the Term set forth in all applicable Service Order(s). The Term shall commence upon the Start Date set forth in the first ClearGov Service Order executed between the Parties and shall continue in full force and effect until the termination or expiration of all applicable ClearGov Service Order(s) (the “Term”).

3.2) Termination. This Agreement and/or any applicable ClearGov Service Order may be terminated prior to the expiration of the term as follows:
a) Either Party may terminate this Agreement if the other Party fails to cure a material breach of the Agreement
within fifteen (15) days after receipt of written notice ATTACHMENT 1 EXHIBIT

ITEM NO. 7.

ClearGov, Inc. Service Agreement ver. 02.02.23 Page 2 of 4 thereof.
b) Either Party may terminate this Agreement if the other Party is involved in insolvency proceedings, receivership, bankruptcy, or assignment for the benefit of creditors.

3.3) Obligations. Upon expiration or termination of this Agreement:
a) Each Party shall promptly return to the other all of the Confidential Information of the other Party in its
possession or control;
b) Customer shall cease use of the ClearGov Service and shall remove all links from the Customer Web Site(s) to any content provided by the ClearGov Apps, provided that Customer may continue to provide access to any
Customer PDF(s). Customer shall be solely responsible for hosting and delivering such Customer PDF(s) as well as
any ongoing costs for doing so; and
c) Any outstanding fees shall become immediately due and payable, and termination of this Agreement shall not
relieve Customer from its obligation to pay to ClearGov any such fees.

3.4) Survival. Sections 3.3, 3.4 and 4 through 8 inclusive shall survive any termination or expiration of this Agreement. 4) Fees and Billing.

4.1) Fees. Customer shall pay the Fees in accordance with the terms set forth in the applicable ClearGov Service Order.

4.2) Interest and Collections. Customer will be charged $50 for payments by checks that are returned due to insufficient funds. Any late payments will accrue interest equal to one and one-half percent (1.5%) per month, or the maximum
amount allowable under law, whichever is less, compounded monthly. ClearGov shall be entitled to recover all reasonable costs of collection (including agency fees, attorneys’ fees, inhouse counsel costs, expenses and costs) incurred in attempting to collect payment from Customer.

4.3) Taxes. Customer is solely responsible for all applicable sales, use and other taxes and similar charges based on or arising from this Agreement or any ClearGov Service Order. In the event that Customer is exempt from sales tax, Customer will provide ClearGov with a tax-exempt certificate upon request. 5) Intellectual Property.

5.1) General. Both Parties may only use the other Party’s intellectual property as expressly set forth herein. Nothing in this Agreement shall be construed in any manner to affect or modify either Party’s ownership rights in any preexisting or future works, trademarks, copyrights or technologies
developed or created by either Party, including without limitation, their respective proprietary software used in connection with the development and provision of their
respective Web sites, databases, systems, products and/or services. Unless specifically agreed by the Parties in writing, all intellectual property, including without limitation information that could become the subject of a patent,
copyright or trade secret, developed by a Party in the context of performing its obligations under this Agreement shall be exclusively owned by that Party and the other Party shall cooperate with any reasonable requests to execute
documents confirming such ownership.

5.2) Data Ownership and License.
a) Customer represents and warrants that it has obtained all data subjects’ consent or otherwise has the full legal right necessary to provide the Customer Data to ClearGov for
ClearGov’s use as contemplated by this Agreement.

Customer acknowledges that ClearGov shall have no legal liability for its use and/or the display of the Customer Data as contemplated by this Agreement.
b) Customer represents and warrants that Customer shall not provide or enter Sensitive Data to be displayed in any publicly available element of the ClearGov Service. To the extent that Customer enters or uploads any Sensitive Data into the ClearGov Service, Customer shall assume full
responsibility for the disclosure of such Sensitive Data.

ClearGov is under no obligation to review and/or verify whether or not Customer Data includes Sensitive Data.
c) Customer Data shall remain the property of Customer, and Customer hereby grants ClearGov a limited,
perpetual, irrevocable and royalty-free right to use, copy, modify, and display the Customer Data within any
ClearGov App(s) and for the purpose of providing the
ClearGov Service.

5.3) Proprietary Rights Notice. The ClearGov Service and all intellectual property rights in the ClearGov Service are, and shall remain, the property of ClearGov. All rights in and to the ClearGov Service not expressly granted to Customer in this Agreement are hereby expressly reserved and retained by ClearGov without restriction, including, without limitation, ClearGov's right to sole ownership of the ClearGov API, ClearGov Apps, ClearGov Data, ClearGov Web Site,
Documentation and Software. Without limiting the generality of the foregoing, Customer agrees not to (and to not allow any third party to): (a) sublicense, copy, distribute, rent, lease, lend or use the ClearGov Service outside of the scope of the license granted herein or make the ClearGov Service available to any third party or use the ClearGov Service on a service bureau time sharing basis; (b) copy, modify, adapt, translate, prepare derivative works from, reverse engineer, disassemble, or decompile the ClearGov Service or otherwise attempt to discover or reconstruct any source code,
underlying ideas, algorithms, file formats, program interfaces or other trade secrets related to the ClearGov Service; (c) use the trademarks, trade names, service marks, logos, domain names and other distinctive brand features or any copyright or other proprietary rights associated with the ClearGov Service for any purpose without the express written consent of ClearGov; (d) register, attempt to register, or assist anyone else to register any trademark, trade name, service marks, logos, domain names and other distinctive brand features, copyrights or other proprietary rights associated with
ClearGov other than in the name of ClearGov; or (e) modify, remove, obscure, or alter any notice of copyright, trademark, or other proprietary right or legend appearing in or on any item included with the ClearGov Service. If the use of the ClearGov Service is being purchased by or on behalf of the U.S. Government or by a U.S. Government prime contractor or subcontractor (at any tier), in accordance with 48 C.F.R. 227.7202-4 (for Department of Defense (DOD) acquisitions) and 48 C.F.R. 2.101 and 12.212 (for non-DOD acquisitions), the Government's rights in the ClearGov Service, including its rights to use, modify, reproduce, release, perform, display or disclose any elements of the ClearGov Service, will be subject in all respects to the commercial license rights and restrictions provided in this Agreement.
6) Representations, Warranties, Indemnification and Liability.

6.1) By ClearGov. ClearGov represents and warrants that: (i) the ClearGov Service shall be provided in accordance with, and shall not violate applicable laws, rules or regulations; and (ii) by using the ClearGov Service, Customer will not violate or in any way infringe upon the personal or proprietary rights of any third party, (iii) to ClearGov’s knowledge, the ClearGov Service does not contain any virus, worm, Trojan horse, time bomb or similar contaminating or destructive feature; and (iv)

ITEM NO. 7.

ClearGov, Inc. Service Agreement ver. 02.02.23 Page 3 of 4 ClearGov holds all necessary rights to permit the use of the ClearGov Service and all components thereof provided to Customer under this Agreement.

6.2) By Customer. Customer represents and warrants that: (i) it has all right, title, and interest in and to the Customer Data necessary for its use in connection with the ClearGov Service; and (ii) it shall not use the ClearGov Service in a manner or in connection with any activity that would violate this Agreement or any law, rule or regulation or rights of any third party.

6.3) By Both. ClearGov and Customer both represent and warrant that (i) each has full power and authority to enter into and perform its obligations under this Agreement; (ii) this Agreement is a legal, valid and binding obligation, enforceable against each Party in accordance with its terms; and (iii) entering into this Agreement will not knowingly violate the Agreement or any laws, regulations or third-party contracts.

6.4) Indemnification by ClearGov. At ClearGov’s cost, ClearGov agrees to indemnify, hold harmless and defend Customer
against any cost, loss or expense (including attorney’s fees) resulting from any claims by third parties for loss, damage or injury (each, a “Claim”) arising out of or relating to (i) ClearGov’s breach of any term, condition, representation or warranty of this Agreement, (ii) ClearGov’s violation of any third party rights in connection with the ClearGov Service or (iii) ClearGov’s violations of applicable laws, rules or regulations in connection with the ClearGov Service. In such a case, Customer will provide ClearGov with written notice of such Claim. Customer shall cooperate as fully as reasonably required in the defense of any Claim. Customer reserves the right, at its own expense, to assume the exclusive defense and control of any matter subject to indemnification by ClearGov. Notwithstanding the foregoing, unless the
settlement involves no cost, loss or continuing liability to Customer, ClearGov shall not settle any Claim, without the written consent of Customer, such consent not to be
unreasonably withheld.

6.5) Limited Warranty. ClearGov warrants that the ClearGov Service will be delivered in a professional and workmanlike manner substantially in accordance with the statement of work set forth in the applicable ClearGov Service Order and that the ClearGov Service will operate in all material respects as described in its product descriptions and/or documentation.

EXCEPT FOR THE EXPRESS WARRANTIES STATED IN THIS

AGREEMENT, INCLUDING ANY APPLICABLE CLEARGOV

SERVICE ORDER, CLEARGOV MAKES NO ADDITIONAL

WARRANTY, EXPRESS OR IMPLIED, STATUTORY OR

OTHERWISE, INCLUDING WITHOUT LIMITATION ANY

IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR

A PARTICULAR PURPOSE OR NON-INFRINGEMENT,

GUARANTEES, REPRESENTATIONS, PROMISES,

STATEMENTS, ESTIMATES, CONDITIONS, OR OTHER
INDUCEMENTS.

6.6) Limitation of Liability. NEITHER CLEARGOV NOR CUSTOMER

WILL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT,

SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING,

WITHOUT LIMITATION, LOST PROFITS), OR INCIDENTAL

DAMAGES, WHETHER BASED ON A CLAIM OR ACTION OF

CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY,

OR OTHER TORT, BREACH OF ANY STATUTORY DUTY,

INDEMNITY OR CONTRIBUTION, OR OTHERWISE, EVEN IF

THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES. THE EXCLUSION CONTAINED IN THIS

PARAGRAPH SHALL APPLY REGARDLESS OF THE FAILURE OF

THE EXCLUSIVE REMEDY PROVIDED IN THE FOLLOWING
SENTENCE. BOTH PARTIES’ TOTAL CUMULATIVE LIABILITY

TO THE OTHER PARTY FOR ANY LOSS OR DAMAGES

RESULTING FROM ANY CLAIMS, DEMANDS OR ACTIONS

ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL

NOT EXCEED THE CUMULATIVE FEES PAID BY CUSTOMER
TO CLEARGOV IN THE PRECEDING TWELVE (12) MONTHS.

THE FOREGOING SHALL NOT LIMIT A PARTY'S (A) PAYMENT
OBLIGATIONS UNDER THE AGREEMENT; (B) LIABILITY FOR
INDEMNIFICATION OBLIGATIONS UNDER SECTION 6.4; (C)

LIABILITY FOR ANY BREACH OF ITS CONFIDENTIALITY
OBLIGATIONS UNDER SECTION 7; (D) LIABILITY FOR ANY

BREACH OF ITS REPRESENTATIONS, WARRANTIES, OR
OBLIGATIONS UNDER SECTION 5.2; OR (E) LIABILITY FOR

ITS INFRINGEMENT OR MISAPPROPRIATION OF ANY
PROPRIETARY RIGHTS OF THE OTHER PARTY. NOTHING IN

THIS AGREEMENT SHALL BE CONSTRUED AS EXCLUDING OR
LIMITING A PARTY’S LIABILITY FOR FRAUD OR ITS

LIABILITY FOR DEATH OR PERSONAL INJURY ARISING FROM
ITS NEGLIGENCE.

6.7) Essential Element. The provisions of this Section 6 are an essential element of the benefit of the consideration reflected in this Agreement.
7) Confidentiality.

7.1) Subject to any applicable open public records laws in the Customer State, each Party will keep the specific terms of this Agreement confidential, including the contents of the
schedules and exhibits, and not disclose any portion of them to any third party (other than to its attorneys, accountants, advisors and potential investors who are bound to keep such information confidential) without the other Party’s prior written consent, except as required by law, including but not limited to open public record laws.

7.2) In addition, in connection with the negotiation and performance of this Agreement, a Party (the “Receiving
Party”) may receive information from the other Party (the “Disclosing Party”) which is confidential or proprietary in nature, including without limitation information about a Party’s products, systems and services (“Confidential
Information”). The Receiving Party agrees that, during the term of this Agreement and for a period of three (3) years thereafter, it will keep the Confidential Information in strictest confidence and protect such Confidential Information by similar security measures as it takes to protect its own Confidential Information of a similar nature, but in no event shall the Receiving Party take less than reasonable care with the Confidential Information of the Disclosing Party. The Receiving Party also agrees that it will not use any
Confidential Information for any purpose other than in
connection with the performance of its obligations under this Agreement.

7.3) The term “Confidential Information” shall not include information which A) is or becomes generally available to the public without breach of this Agreement, B) is in the
possession of the Receiving Party prior to its disclosure by the Disclosing Party, C) becomes available from a third party not in breach of any obligations of confidentiality, D) is
independently developed by the Receiving Party, or E) is required to be disclosed by the Receiving Party pursuant to law, rule, regulation, subpoena or court order, including but not limited to open public record laws.

7.4) The Parties recognize that the disclosure or use of a Disclosing Party’s Confidential Information by the Receiving Party in violation of the provisions of this Section 7 may cause irreparable injury to the Disclosing Party; therefore, in the event either Party breaches the provisions of this Section 7, the other Party, in addition to any other remedies it may have, shall be entitled to seek preliminary and permanent

ITEM NO. 7.

ClearGov, Inc. Service Agreement ver. 02.02.23 Page 4 of 4 injunctive relief without the necessity of posting a bond. 8) Miscellaneous.

8.1) General. If any provision of this Agreement is held to be unenforceable for any reason, such provision shall be
reformed to the extent necessary to make it enforceable to the maximum extent permissible so as to implement the
intent of the Parties, and the remainder of this Agreement shall continue in full force and effect. A waiver of any default is not a waiver of any subsequent default. The relationship between ClearGov and Customer is one of independent
contractors, not partnership, joint venture or agency. This Agreement shall be binding upon and inure to the benefit of the respective successors and permitted assigns of the Parties hereto. The United Nations Convention on Contracts for the International Sale of Goods and the Uniform Computer
Information Transactions Act shall not apply to this
Agreement. The Software is controlled by U.S. Export
Regulations, and it may not be exported to or used by
embargoed countries or individuals.

8.2) Entire Agreement. This Agreement and the accompanying ClearGov Service Order(s), together, constitute a valid and binding agreement between the Parties and are intended to be the Parties’ complete, integrated expression of the terms of their agreement with respect to the ClearGov Service, and any prior agreements or understandings with respect to such subject matter are superseded hereby and fully merged
herein.

8.3) Assignment. Neither Party will assign this Agreement in whole or in part to any third party without the prior written consent of the other Party; provided, however, either Party may assign this Agreement without such consent to any subsidiary or parent company of such Party or to any successor by way of any merger, consolidation or other corporate
reorganization of such Party or sale of all or substantially all of the assets of such Party or to an entity that assumes, by sale, license or otherwise, the business activities that are the subject of this Agreement, provided that such subsidiary or parent company or successor assumes or is otherwise fully bound by all of the obligations of the assigning Party under this Agreement.

8.4) Marketing Materials. Customer agrees that ClearGov may utilize Customer’s name solely to identify it as a ClearGov Customer on the ClearGov Web site, in client lists and other marketing materials. Any other uses of Customer’s name
and/or logo (other than as included in the content and/or other items furnished to ClearGov by Customer) shall require Customer’s prior written consent.

8.5) Insurance. ClearGov shall maintain commercial general liability insurance, cybersecurity insurance, product liability insurance and auto liability insurance in amounts that are consistent with industry standards. ClearGov shall maintain Worker’s Compensation insurance as required by law.

8.6) No Boycott of Israel. ClearGov hereby certifies that ClearGov is not currently engaged in and shall not, for the duration of the Term of this Agreement, engage in a boycott of goods or services from the State of Israel; companies doing business in or with the State of Israel or authorized by, licensed by or organized under the laws of the State of Israel; or persons or entities doing business in the State of Israel.

8.7) Jurisdiction. This Agreement shall be governed by the applicable laws in the Customer State, without regard to conflict of laws rules. Any dispute, claim or controversy arising out of or relating to this Agreement or the breach,
termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined exclusively by arbitration in the Customer State before a panel of three arbitrators. Such arbitration shall be administered by JAMS pursuant to JAMS’ Streamlined Arbitration Rules and
Procedures. Judgment on an award, if any, may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. The Parties
acknowledge that this Agreement evidences a transaction involving interstate commerce. Notwithstanding the provision with respect to applicable substantive law, any arbitration conducted pursuant to the terms of this Agreement shall be governed by the Federal Arbitration Act (9 U.S.C., Secs. 1- 16).

8.8) Modification. ClearGov shall have the right to modify this Agreement at any time by posting revised terms and
conditions at the following URL:
http://www.ClearGov.com/terms-and-conditions. Changes will be binding on the date they are posted. Continued use of the ClearGov Service will be considered acceptance by Customer of the then current Agreement.

8.9) Force Majeure. If the performance of this Agreement or any obligations hereunder is prevented or interfered with by reason of fire or other casualty or accident, strikes or labor disputes, war or other violence, any law, proclamation, regulation, or requirement of any government agency, or any other act or condition beyond the reasonable control of a Party hereto, that Party upon giving prompt notice to the other Party shall be excused from such performance during such occurrence.

8.10) Notices. All notices, requests, or other communications between the Parties that are required or permitted hereunder will be in writing and will be given by: (a) delivery in person or by prepaid courier service with a nationally recognized courier company, (b) delivery by registered or certified mail, postage prepaid, return receipt requested, (c) by confirmed fax, or (d) email to the address and/or fax number set forth in the applicable ClearGov Service Order. A Party may change the street or email address or fax number to which notice is to be sent by giving written notice of such change. Notices will be deemed given when received as evidenced by
verification from the courier company, the mail or
confirmation of email receipt or fax confirmation.

8.11) Titles & Subtitles. The titles and subtitles in this Agreement are used for convenience only and are not to be considered in construing it.

ITEM NO. 7.

AGREEMENT FOR SERVICES

Agreement for Services
ClearGov
ClearGov - Software Services

PREAMBLE
THIS AGREEMENT is by and between TOWN OF LOS GATOS, a California municipal corporation, (“Town”) and ClearGov Inc. (“Contractor”), a Corporation and whose address is 2 Mill & Main Place Suite 630, Maynard MA 01754. This Agreement is made with reference to the following facts.

I. RECITALS
A. For the services described in this Agreement, the Contractor is the only Contractor who provides this service.

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

C. Town desires to engage Contractor to provide software services.

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

II. AGREEMENT
A. Scope of Services. Contractor shall provide budgeting and planning suite services as described in the vendor proposal, which is hereby incorporated by reference and attached as Exhibit A.

B. Term. The term of this Agreement shall be from upon execution to Wednesday, October 31, 2029.

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

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

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

ATTACHMENT 2

ITEM NO. 7.

Agreement for Services
ClearGov
F. Compensation: Compensation for services at the rates set forth in Exhibit A and in the amount not to exceed $175,366.00, inclusive of all costs subject to appropriation of funds, notwithstanding any other provision in this agreement.

G. Billing. Subscription fees shall be invoiced annually in advance, and any one-time implementation fees shall be invoiced as set forth in Exhibit A. Payment shall be net thirty (30) days. All invoices and statements to the Town shall be addressed as follows:

Invoices: Town of Los Gatos
Attn: Accounts Payable
P.O. Box 655
Los Gatos, CA 95031-0655
Email (preferred): [email protected]
H. Availability of Records. Contractor shall maintain the records supporting this billing for not less than three years following completion of the work under this Agreement. Contractor shall make these records available to authorized personnel of the Town at the Contractor offices during business hours upon written request of the Town.

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

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

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

ITEM NO. 7.

Agreement for Services
ClearGov
employment relationship. Contractor's provision of the same or similar software services to other public agencies shall not be deemed a conflict of interest under this Section.

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

III. INSURANCE AND INDEMNIFICATION
A. Minimum Scope of Insurance:

1. Contractor agrees to have and maintain, for the duration of the contract, General Liability insurance policies insuring him/her and his/her firm to an amount not less than: one million dollars ($1,000,000) per occurrence and two million dollars ($2,000,000) in the aggregate for bodily injury, personal injury and property damage.

2. Contractor agrees to have and maintain for the duration of the contract, an Automobile Liability insurance policy ensuring him/her and his/her staff to an amount not less than one million dollars ($1,000,000) combined single limit per accident for bodily injury and property damage.

3. Contractor shall provide to the Town all certificates of insurance, with original endorsements effecting coverage. Contractor agrees that all certificates and endorsements are to be received and approved by the Town before work commences.

B. General Liability:

1. The Town, its elected and appointed officials, employees, and agents are to be covered as additional insured as respects: liability arising out of activities performed by or on behalf of the Contractor; products and completed operations of the Contractor, premises owned or used by the Contractor.

2. The Contractor's insurance coverage shall be primary insurance as respects the Town, its elected and appointed officials, employees, and agents. Any insurance or self-insurances maintained by the Town, its officers, officials, employees or agents shall be excess of the Contractor's insurance and shall not contribute with it.

3. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the Town, its officers, officials, employees or agents.

4. The Contractor's insurance shall apply separately to each insured against whom a claim is made or suit is brought, except with respect to the limits of the insurer's liability.

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

ITEM NO. 7.

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

E. Indemnification. The Contractor shall indemnify the Town its elected and appointed officials, employees and agents from all damages, liabilities, penalties, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of, or in the course of performing work under this Agreement, to the extent caused by the negligent act or omissions or willful misconduct of the Contractor, or any of the Contractor's officers, employees, or agents or any subcontractor. Contractor shall defend the Town against any such claims.

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

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

C. Mediation. Should any dispute arise out of this Agreement, any party may request that it be submitted to mediation.

The parties shall meet in mediation within 30 days of a request. The mediator shall be agreed to by the mediating parties. In the absence of an agreement, the parties shall each submit one name from mediators listed by either the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon service. The mediator shall be selected by a blind draw. The cost of mediation shall be borne equally by the parties.

Neither party shall be deemed the prevailing party. No party shall be permitted to file a legal action without first meeting in mediation and making a good faith attempt to reach a mediated settlement. The mediation process, once commenced by a meeting with the mediator, shall last until agreement is reached by the parties but not more than 60 days, unless the maximum time is extended by the parties.

D. Termination of Agreement. Either party may terminate this Agreement for the other party's material breach not cured within thirty (30) days after written notice. The Town may also terminate without cause (i) during the Client Satisfaction Period in the Service Order, for a full refund of fees paid, (ii) effective at the end of any annual subscription period, on thirty (30) days' prior written notice, or (iii) effective at the end of the then-current annual subscription period if funds for the following fiscal year are not appropriated. In the event of termination, the Contractor shall make Town’s data available for export. Fees for the then-current annual subscription period are non-refundable, except that if the Town terminates for Contractor’s uncured material breach, Contractor shall refund prepaid fees for the remainder of that period.

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

ITEM NO. 7.

Agreement for Services
ClearGov
F. Limitation of Liability. Except for (i) Contractor's indemnification obligations under Section III.E, (ii) liability for infringement of a third party's proprietary rights, (iii) fraud, and (iv) personal injury or death, neither party shall be liable for indirect, incidental, consequential, special or punitive damages or lost profits, and each party's total liability under this Agreement shall not exceed the fees paid or payable by the Town in the twelve (12) months preceding the event giving rise to the claim.

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

Town of Los Gatos
Attn: Town Clerk
110 E. Main Street, Los Gatos, CA 95030
ClearGov Inc.
2 Mill & Main Place Suite 630, Maynard MA 01754
or personally delivered to the Contractor to such address or such other address as the Contractor designates in writing to Town.

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

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

ITEM NO. 7.

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

TOWN OF LOS GATOS: ClearGov Inc.
**signature_203326**

SIGNATURE
Chris Constantin

FULL NAME
Town Manager
TITLE
**date_signed_203326**

DATE SIGNED
**signature_203330**

SIGNATURE

VENDOR SIGNATORY'S FULL NAME

VENDOR SIGNATORY'S TITLE
**date_signed_203330**

DATE SIGNED
Approved as to form:
**signature_203328**

SIGNATURE
Gabrielle Whelan

FULL NAME
Town Attorney
TITLE
**date_signed_203328**

DATE SIGNED
The execution date is the date on which the last party has signed.

ITEM NO. 7.

PREPARED BY: Katy Nomura
Assistant Town Manager
Reviewed by: Town Manager, Town Attorney, and Administrative Services Director 110 E. Main Street Los Gatos, CA 95030 ● (408) 354-6832 www.losgatosca.gov

TOWN OF LOS GATOS

COUNCIL AGENDA REPORT
MEETING DATE: 10/20/2026
ITEM NO: 8
DATE: October 20, 2026
TO: Mayor and Town Council
FROM: Chris Constantin, Town Manager
SUBJECT: Authorize the Town Manager to Negotiate and Execute an Amendment to the Lease Agreement with the Friends of the Los Gatos Library RECOMMENDATION: Authorize the Town Manager to negotiate and execute an amendment to the Lease Agreement with the Friends of the Los Gatos Library.

FISCAL IMPACT:

This lease amendment allows the cost of utilities to be included in the Friends of the Los Gatos Library’s (Friends) annual funding commitment rather than through separate payments. The current lease requires the Friends to provide an annual minimum funding commitment of $35,000 and to separately pay the Town for their associated utility expenses through invoices the Town issues. The proposed amendment redefines the minimum funding commitment to be $35,000 plus the cost of utilities so that utility costs can be covered through one annual contribution. There is no net difference in total revenue from the Friends to the Town with this amendment. The amendment will increase efficiency and reduce the administrative burden associated with invoicing and processing multiple payments.

STRATEGIC PRIORITY:

This item supports the strategic priority of prudent financial management, leveraging efficiencies and partnerships.

BACKGROUND:

The Friends of the Los Gatos Library (Friends) is a 501(c)3 non-profit organization with the dedicated mission of fundraising support for the Los Gatos Library. The Friends support this mission with an annual monetary donation to the Town to support the Library, including its

ITEM NO. 8.

PAGE 2 OF 2
SUBJECT: Friends of the Library Lease Amendment
DATE: October 20, 2026
services and programs. The donation amount varies each year and has not been less than $70,000 annually for the past eight years; however, this amount is not guaranteed, as the actual amount is tied to the success of their fundraising for each year.

The primary source of fundraising is generated through the operation of the Friends Bookstore.

The Friends have been operating the Friends Bookstore at 108 East Main St in the Civic Center Complex as a tenant of the Town since July of 2015. This lease set the actual “rent” at $1 per year with the understanding that the Friends would make a monetary donation to the Town for Library services of a minimum of $35,000 per year.

On November 4, 2025, this amendment was originally published on the Town Council agenda but later removed as the Friends of the Library wished to discuss further.

DISCUSSION:

The proposed amendment (Attachment 1) allows the Friends to include their cost of utilities within their annual monetary donation. This change allows the Friends to provide a larger sum in their annual contribution while reducing utility invoicing and transaction processing by Town staff.

CONCLUSION:

Staff recommends authorizing the Town Manager to negotiate and execute the amendment to the lease agreement with the Friends of the Los Gatos Library.

COORDINATION:

This item was coordinated with the Library, the Town Attorney, the Town Manager’s Office, and the Friends of the Los Gatos Library.

ENVIRONMENTAL ASSESSMENT:

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

Attachments:

1. Draft Amendment

ITEM NO. 8.

Agreement for Services
Friends of Los Gatos Public Library

FIRST AMENDMENT TO LEASE AGREEMENT BETWEEN THE TOWN OF LOS GATOS AND FRIENDS OF THE LOS

GATOS PUBLIC LIBRARY
This AMENDMENT TO AGREEMENT is dated for this 23rd day of September, 2026, and amends that certain Lease Agreement between the Town of Los Gatos (“Town”) and Friends of the Los Gatos Public Library, a California nonprofit corporation (“Lessee”) dated July 1, 2024.

RECITALS
A. The Town and Lessee entered into a Lease Agreement for the property located at 108 E. Main Street effective July 1, 2024, and extending through April 30, 2029 with options to extend (“2024 Lease Agreement”), a copy of which is attached hereto and incorporated by reference as Exhibit A to this Amendment.

B. Now, therefore, the parties hereto agree as follows:

AMENDMENT
A. Section 4 FUNDING COMMITMENT is amended to read as follows:

Lessee shall be obligated to contribute a minimum of $35,000 plus the cost of utility expenses (see Section 6.1 of this Lease Agreement) to the Town on an annual basis based on proceeds from the Lessee’s efforts to support the Town of Los Gatos Public Library as established in Lessee’s Library Trust Fund Account. All funds paid by the Friends of the Los Gatos Public Library per the funding commitment will be used solely for the Los Gatos Library. All payments shall be made payable annually to the Town the day after the second Town Council meeting in August. The Town will provide an opportunity for the Friends of the Los Gatos Public Library to ceremonially present the contribution at a regular meeting of the Town Council in August.

B. Section 6.1 Lessee Obligations is amended to read as follows:

Lessee is responsible for all expenses associated with the operation of the Premises, including but not limited to, the furnishing of gas, water, sewer, electricity, garbage pickup and disposal, and other public utilities (“utility expenses”). Lessee shall be responsible for a pro-rated share, based on square footage, of utility expenses provided by or through the Town. Lessee’s utility expenses will be considered included in Lessee’s funding commitment contribution (see Section 4 of this Lease Agreement) so long as the annual contribution amount exceeds the total of the cost of the utility expenses added to the minimum $35,000 funding commitment paid to the Town by Lessee.

Lessee shall be obligated to pay their own direct costs for telephone, technology, audio-visual, custodial, or other specialized services, including any initial costs for those services.

Town shall maintain all exterior landscaping.

C. All other terms, covenants, and conditions of the original 2024 Lease Agreement remain in full force and effect except as expressly modified herein.

ATTACHMENT 1 Page 141
ITEM NO. 8.

Agreement for Services
Friends of Los Gatos Public Library
TOWN OF LOS GATOS: LESSEE: Friends of the Los Gatos Public Library **signature_208725**

SIGNATURE
Chris Constantin

FULL NAME
Town Manager
TITLE
**date_signed_208725**

DATE SIGNED
**signature_208723**

SIGNATURE
Vicki Wendell

FULL NAME
President
TITLE
**date_signed_208723**

DATE SIGNED
Approved as to form:
**signature_208728**

SIGNATURE
Gabrielle Whelan

FULL NAME
Town Attorney
TITLE
**date_signed_208728**

DATE SIGNED
**signature_208767**

SIGNATURE
Wendy Wood

FULL NAME
**date_signed_208767**

DATE SIGNED
Town Clerk
TITLE
Attachments:

A - Friends of Library Lease Agreement 2024

ITEM NO. 8.

Page i of ii

LEASE AGREEMENT

BETWEEN

TOWN OF LOS GATOS
AND

FRIENDS OF THE LOS GATOS PUBLIC LIBARY

TABLE OF CONTENTS

LEASE PROVISIONS

1. PREMISES. ....................................................................................................................... 1

2. TERM................................................................................................................................. 1

3. RENT. ................................................................................................................................ 2

4. FUNDING COMMITMENT. .......................................................................................... 2

5. USE OF PREMISES AND OPERATING HOURS....................................................... 2

6. UTILITIES AND OPERATING EXPENSES................................................................ 3

7. TAXES. .............................................................................................................................. 4

8. MAINTENANCE.............................................................................................................. 4

9. CASP INSPECTION. ....................................................................................................... 5

10. AMERICANS WITH DISABILITIES ACT.................................................................. 6

11. TENANT IMPROVEMENTS. ........................................................................................ 6

12. ALTERATIONS BY LESSEE......................................................................................... 7

13. HOLD HARMLESS/INDEMNIFICATION.................................................................. 7

14. DAMAGE, DESTRUCTION AND TERMINATION................................................... 7

15. SIGNS AND MARKETING. ........................................................................................... 8

16. ASSIGNMENT AND SUBLETTING............................................................................. 8

17. DEFAULTS; REMEDIES................................................................................................ 9

18. INTEREST ON PAST-DUE OBLIGATIONS............................................................. 10

19. HOLDING OVER......................................................................................................... 110

20. TOWN’S ACCESS. ........................................................................................................ 11

21. INSURANCE................................................................................................................... 11

22. DISPUTE RESOLUTION. ............................................................................................ 12

23. NON-LIABILITY OF OFFICIALS AND EMPLOYEES OF THE TOWN. ........... 12 Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.

Page ii of ii

24. NON-DISCRIMINIATION. .......................................................................................... 12

25. INDEPENDENT CONTRACTOR................................................................................ 13

26. CONFLICT OF INTEREST.......................................................................................... 13

27. ESTOPPEL CERTIFICATE......................................................................................... 13

28. LIENS. ............................................................................................................................. 13

29. VACATING................................................................................................................... 143

30. ABANDONMENT. ......................................................................................................... 14

31. NOTICES. ....................................................................................................................... 14

32. TIME................................................................................................................................ 14

33. AMENDMENTS. ............................................................................................................ 15

34. SIGNING AUTHORITY.............................................................................................. 154

35. CAPTIONS...................................................................................................................... 15

36. SURRENDER OF LEASE NOT MERGER. ............................................................... 15

37. INTEGRATED DOCUMENT....................................................................................... 15

38. WAIVER.......................................................................................................................... 15

39. INTERPRETATIONS.................................................................................................... 16

40. SEVERABILITY CLAUSE. .......................................................................................... 15

41. GOVERNING LAW....................................................................................................... 16

42. VENUE............................................................................................................................. 16

43. COMPLIANCE WITH LAWS...................................................................................... 16

44. BROKERS....................................................................................................................... 16

45. ATTACHMENTS TO LEASE. ..................................................................................... 16

EXHIBITS
A DESCRIPTION OF SUBJECT PREMISES.................................................................... 18 B STANDARD INSURANCE REQUIREMENTS.............................................................. 20 Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
1 LEASE AGREEMENT

BETWEEN

TOWN OF LOS GATOS
AND

FRIENDS OF THE LOS GATOS PUBLIC LIBRARY
This lease agreement (herein "Lease") is made and entered into July 1, 2024, by and between the Town of Los Gatos, a California municipal corporation (herein "Town") and Friends of the Los Gatos Public Library, a California nonprofit corporation (herein "Lessee"). Town and Lessee may be referred to individually as a “Party” or collectively as the “Parties” or the “Parties to this Lease." The Town Manager serves as Contract Administrator for this Lease on behalf of the Town Council.

In consideration of these recitals and the following covenants, terms, and conditions, Lessee and Town mutually agree as follows:

LEASE PROVISIONS

1. PREMISES.

Town hereby leases to Lessee, certain real property located in the Town of Los Gatos, County of Santa Clara, State of California, commonly known as 108 E. Main Street (herein the "Premises") and more particularly described in Exhibit A attached hereto and incorporated herein by reference. The Premises consists of approximately one thousand eight hundred and sixty (1,860) square feet of space for retail book sales. Unless specifically provided, Lessee accepts the Premises “as-is” on the date of execution of this Lease.

2. TERM.

2.1 Original Term. The term of this Lease shall be for five (5) years, commencing on July 1, 2024 ("Delivery Date") and ending on April 30, 2029. Lessee shall, at the expiration of the term of this Lease, or upon its earlier termination, surrender the Premises in as good condition as it is now at the date of this lease. The Parties expect reasonable wear and tear.

2.2 Option to Extend. Provided Lessee is not in default hereunder, either at the time of exercise or at the time the extended term commences, Lessee shall have the option to extend the initial term of this Lease for two (2) additional periods of five (5) years (“Option Period”) with the same terms, covenants and conditions provided herein by letter agreement. Lessee’s option shall be exercised by Lessee providing Town with request for an extension in writing no less than sixty (60) days prior to the expiration of the then current term.

Early Termination by Town. If Town in its sole discretion determines that it requires the Premises for any public purpose, Town may terminate this Lease upon ninety (90) days written notice.

Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
2 3. RENT.

3.1 Base Rent. The rent to be paid by Lessee shall be in the amount of One Dollar ($1.00) per year.

3.2 Payment Date. Rent shall be payable on the first day of July commencing on the Delivery Date, and each July 1
st thereafter during the term of the Lease and any Lease extension at Town Hall Finance Department.

4. FUNDING COMMITMENT.

Lessee shall be obligated to contribute a minimum of $35,000 to Town on an annual basis based on proceeds from the Lessee’s efforts to support the Town of Los Gatos Public Library as established in Lessee’s Library Trust Fund account. All funds paid by the Friends of the Los Gatos Public Library per the funding commitment will be used as enhancements to the Library budget and are not intended to offset the general fund contributions to the Library budget. All payments shall be made payable annually to the Town the day after the second Town Council meeting in August. The Town will provide an opportunity for the Friends of the Los Gatos Public Library to ceremonially present the contribution at a regular meeting of the Town Council in August.

5. USE OF PREMISES AND OPERATING HOURS.

5.1 Required Uses. Throughout the term of this Lease, Lessee shall provide the following uses, services and activities (“Required Uses”):

5.1.1 Uses consistent with Lessee’s business purposes which includes retail sales of used and new books, ancillary items (cards, t-shirts, paper, and similar products), and museum merchandise.

5.1.2 1,860 square feet of space on the upper level of the old Town of Los Gatos Library located at 108 Main Street, Los Gatos, CA, as shown on Exhibit A.

5.1.3 Lessee may request to reserve the conference room once a month in the new public library and the outdoor Town deck adjacent to Lessee’s space in accordance with the Town’s Facility Use Policy

5.2 Hours of Operations.

5.2.1 Public Hours. Lessee may set reasonable hours of operation.

5.2.2 Special Events. Lessee shall be obligated to apply for a Special Events Permit in accordance with Town rules and regulations and pay all associated costs and fees for any Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
3 event that meets the criteria set forth by Town Code. Alcohol (beer & wine only) may be allowed in conjunction with approval of a Special Events Permit, subject to all regulations required by the Los Gatos Police Department. For those events that do not meet the criteria requiring a Special Event Permit, but do impact parking at the Civic Center, Lessee shall coordinate with the Town Manager’s office to avoid conflicts during business hours or when Town events or meetings are scheduled.

5.3 Prohibited Uses. Lessee shall not use Premises for any purpose not expressly permitted hereunder. Lessee shall not create, cause, maintain or permit any nuisance or waste in, on, or about the Premises, or permit or allow the Premises to be used for any unlawful or immoral purpose. Lessee shall not do or permit to be done anything in any manner which unreasonably disturbs the users of the Town Property or the occupants of neighboring property. Specifically, and without limiting the above, Lessee agrees not to cause any unreasonable odor, noise, vibration, power emission, or other item to emanate from the Premises. No materials or articles of any nature shall be stored outside upon any portion of the Premises. Lessee will not use Premisesin a manner that increases the risk of fire, cost of fire insurance or improvements thereon. No unreasonable sign or placard shall be painted, inscribed or placed in or on said Premises; and no tree or shrub thereon shall be destroyed or removed or other waste committed of said Premises. No bicycles, motorcycles, automobiles or other mechanical means of transportation shall be placed or stored anywhere on the Premises. No repair, overhaul or modification of any motor vehicle shall take place on the Premises or the street in front of said Premises. Lessee, at his/her expense, shall keep the Premises in as good condition as it was at the beginning of the terms hereof, except damage occasioned by ordinary wear and tear, and except damage to the roof, sidewalks and underground plumbing, which is not the fault of Lessee.

5.4 Condition, Use of Premises. Town makes no warranty or representation of any kind concerning the condition of the Premises, or the fitness of the Premises for the use intended by Lessee, and hereby disclaims any personal knowledge with respect thereto, it being expressly understood by the parties that Lessee has personally inspected the Premises, knows its condition, finds it fit for Lessee’s intended use, accepts it as is, and has ascertained that it can be used exclusively for the limited purposes specified in Section 5.1.

5.5 Parking. Town will provide Olive Zone parking to Lessee for their volunteers.

5.6 Coordination with Town. Lessee shall schedule, attend, and fully participate in annual meetings with Town Manager and/or Manager’s designee to address any and all conditions of this Agreement or any other matter which arises in conjunction with the use of the Premises.

Lessee shall also be required to participate in Town Emergency Preparedness training and exercises.

6. UTILITIES AND OPERATING EXPENSES.

6.1 Lessee Obligations. Lessee at Lessee’s sole expense shall fully and promptly pay for all expenses associated with the operation of the Premises, including but not limited to the Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
4 furnishing of gas, water, sewer, electricity, telephone service, garbage pickup and disposal, other public utilities and custodial service. Lessee shall be obligated to pay a pro-rated share based on square footage for gas, water, sewer, electricity, garbage service and other public utilities provided by or through the Town. Lessee shall be obligated to pay their own direct costs for telephone, technology, audio-visual, custodial or other specialized services, including any initial costs for those services. Town shall maintain all exterior landscaping.

6.2 Custodial Services. Lessee at Lesses’s sole expense shall fully maintain and pay for all custodial services to maintain the interior premises in a clean and safe manner. All vendors for custodial services shall be bonded, insured, and the Town named as an additional insured.

Proof of bond and insurance including the additional insured certificate shall be provided to Town prior to any custodial services being performed.

7. TAXES.

7.1 Payment of Real Property Taxes. Town shall pay Lessee’s share of all real property taxes which become due and payable.

7.2 Revenue and Taxation Code. Lessee specifically acknowledges it is familiar with section 107.6 of the California Revenue and Taxation Code. Lessee realizes that a possessory interest subject to property taxes may be created, agrees to pay any such tax, and hereby waives any rights Lessee may have under said California Revenue and Taxation Code section 107.6.

7.3 Personal Property Taxes. Lessee shall pay before delinquent, or if requested by Town, reimburse Town for, any and all taxes, fees, and assessments associated with the Premises, the personal property contained in the premises and other taxes, fees, and assessments regarding anyactivitieswhich take place at thePremises. Lessee recognizes and understands in accepting this Lease that its interest therein may be subject to a possible possessory interest tax thatTown orCountymayimpose on such interest and thatsuchtax paymentshall notreduce any rent due Town hereunder and any such tax shall be the liability of and be paid by Lessee.

8. MAINTENANCE.

8.1 Town and Lessee Responsibilities. Lessee at Lessee’s expense, shall perform all interior maintenance and repairs, including all painting, necessary to keep the Premises in good order, repair, and condition, and shall keep the Premises in a safe, clean, and sanitary condition to the complete satisfaction of Town, and in compliance with all applicable laws, throughout the term of this Lease. In addition, Lessee shall maintain, at Lessee’s expense, all equipment, furnishings and trade fixtures upon the Premises required for the maintenance and operation of public services of the type to be conducted pursuant to this Lease. Routine interior plumbing and electrical maintenance (e.g., plugged toilets/sinks, faulty switches/lights) will be the responsibility of the Lessee. Town shall be responsible for the routine maintenance and repair of the exterior structure of the Premises and main support systems, including roof repair, exterior painting and structural repairs, excluding any Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
5 maintenance or repairs resulting from Lessee’s actions or activities. Windows broken or cracked will be the responsibility of the Town, excluding broken windows resulting from Lessee’s actions or activities.

8.2 Waiver of Civil Code. Lessee expressly waives the benefit of any statute now or hereinafter in effect, including the provisions of sections 1941 and 1942 of the Civil Code of California, which would otherwise afford Lessee the right to make repairs at Town’s expense or to terminate this Lease because of Town’s failure to keep Premises in good order, condition and repair. Lessee further agrees that if and when any repairs, alterations, additions or betterments shall be made by Lessee as required by this paragraph, Lessee shall promptly pay for all labor done or materials furnished and shall keep the Premisesfree and clear of any lien or encumbrance of any kind whatsoever. If Lessee fails to make any repairs or perform any maintenance work for which Lessee is responsible within a reasonable time (as determined by the Town Manager in the Town Manager’s sole discretion) after demand by the Town, Town shall have the right, but not the obligation, to make the repairs at Lessee’s expense; within ten (10) days of receipt of a bill, Lessee shall reimburse Town for the cost of such repairs, including a fifteen percent (15%) administrative overhead fee. The making of such repairs or performance of maintenance by Town shall in no event be construed as a waiver of the duty of Lessee to make repairs or perform maintenance as provided in this Section.

8.3 Maintenance of Common Areas. Town shall maintain or cause to be maintained, including repair and replacement as necessary, the exterior grounds, exterior shared deck, and the parking lot adjacent to the Premises. If Lessee uses the shared deck for activities or a special event, Lessee shall promptly remove all structures, fixtures, accessories, decorations and trash associated with the activity or event.

9. CASP INSPECTION.

Landlord states that the Premises have not been inspected by a Certified Access Specialist (CASp). Accordingly, this notice is provided by Landlord pursuant to California Civil Code Section 1938:
“A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or Landlord may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of the construction-related accessibility standards within the premises.”
Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
6 Unless otherwise expressly stated in this Lease and subject to the terms of this Lease: (a) Lessee may elect at any time to perform a CASp inspection of the Premises at Lessee’s expense; (b) any repairs or modifications necessary to correct violations of applicable construction-related accessibility standards within or about the Premises are the responsibility of Lessee; and (c) any construction-related accessibility improvements by Lessee or alterations of or improvements to the Premises are the responsibility of the Lessee.

10. AMERICANS WITH DISABILITIES ACT.

Throughout the term of the Lease, Lessee acknowledges and expressly accepts full responsibility and shall incur all costs and expenses (whether structural or non-structural in nature) for compliance with the requirements of the Americans with Disabilities Act (ADA) and any other law regarding the accessibility of the Premises (and the improvements located or to be located thereon) by disabled individuals. Lessee agrees to release, indemnify, defend and hold harmless Landlord (and its officials, officers, directors, employees, agents, representatives, volunteers, contractors, successors and assigns) from and against any claim, loss, expense or liability arising from Lessee’s failure to fully comply with all such applicable laws and/or this Section 10 (Americans with Disabilities Act).

11. TENANT IMPROVEMENTS.

11.1 Improvements Permitted. Subject to prior written approval of the Town Manager, which shall not be unreasonably withheld, Lessee shall be entitled to install improvements in an efficient and workmanlike manner within the Premises, at no cost to Town. All costs of plans, improvements, and permits shall be the sole responsibility of the Lessee. All structural improvements and improvements in excess of $5,000 must be approved in writing by the Town Manager.

11.2 Cost of Improvements. All tenant improvements shall be made at Lessee’s sole expense.

11.3 Ownership of Improvements. All improvements constructed, erected, or installed upon the Premises must be free and clear of all liens, claims, or liability for labor or material and shall become the property of Town, at its election, upon expiration or earlier termination of this lease and upon Town's election, shall remain upon the Premises upon termination of this Lease. Title to all free standing equipment, furniture, furnishings, and trade fixtures placed by Lessee upon the Premises shall remain in Lessee’s ownership, and replacements, substitutions and modifications thereof may be made by Lessee throughout the term of this Lease.

11.4 Indemnity for Claims Arising Out of Construction. Lessee shall defend and indemnify Town against all claims, liabilities, and losses of any type arising out of work performed on the Premises by Lessee, together with reasonable attorneys' fees and all costs and expenses reasonably incurred by Town in negotiating, settling, defending or otherwise protecting Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
7 against such claims.

11.5 Certificate of Inspection. Upon completion of construction of any building, Lessee shall submit to the Town Manager a Certificate of Inspection, verifying that the construction was completed in conformance with Title 20 of the California Code of Regulations for residential construction, or in conformance with Title 24 of the California Code of Regulations for non-residential construction.

11.6 As Built Plans. Lessee shall provide the Town Manager with a complete set of reproducible “as built plans” reflecting actual construction within or upon the Premises upon completion of any: (i) new construction; (ii) structural alterations; or, (iii) non-structural alterations costing more than $25,000.

12. ALTERATIONS BY LESSEE
Lessee shall not make any alterations or improvements to the Premises without obtaining the prior written consent of the Town Manager. Lessee may, at any time and at its sole expense, install and place business fixtures and equipment within the Premises, provided such fixtures and installation have been reviewed and approved by the Town Manager.

13. HOLD HARMLESS/INDEMNIFICATION.

13.1 Indemnification. To the fullest extent permitted by law, Lessee agrees to protect, defend, hold harmless and indemnify Town, its Town Council, commissions, officers, agents, volunteers, and employees from and against any claim, injury, liability, loss, cost, and/or expense or damage, however same may be caused, including all costs and reasonable attorney's fees in providing a defense to any claim arising therefrom for which Town shall become legally liable arising from Lessee's negligent, reckless, or wrongful acts, errors, or omissions with respect to or in any way connected with this Lease. Lessee shall give Town immediate notice of any claim or liability hereby indemnified against. This indemnity shall be in addition to the Hazardous Materials indemnity contained in this Lease and shall survive the expiration of or early termination of the Lease Term.

13.2 Waiver of Claims. Lessee waives any claims against Town for injury to Lessee’s business or any loss of income therefrom, for damage to Lessee’s property, or for injury or death of any person in or about the Premises or the Town Property, from any cause whatsoever, except to the extent caused by Town’s active negligence or willful misconduct.

14. DAMAGE, DESTRUCTION AND TERMINATION.

14.1 Force Majeure. Prevention, delay or stoppage due to strikes, lockouts, labor disputes, Acts of God, inability to obtain labor, inability to obtain materials or reasonable substitutes, governmental restrictions, governmental regulation, governmental controls, judicial orders, enemy or hostile governmental actions, civil commotion, fire or other casualty, and other causes beyond the reasonable control of Lessee (financial inability excepted), shall excuse Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
8 the performance by Lessee for a period equal to the prevention, delay, or stoppage, except the obligations imposed with regard to rent to be paid by Lessee pursuant to this Lease. In the event any work performed by Lessee or Lessee’s contractors results in a strike, lockout, and/or labor dispute, the strike, lockout, and/or labor dispute shall not excuse the performance by Lessee of the provisions of this Lease.

14.2 Restoration of Premises Termination. If, during the term of the Lease, the Premises are totally or partially destroyed, rendering the Premises totally or partially inaccessible or unusable, Lessor may restore the Premises to substantially the same condition as it was in immediately before destruction, whether or not the insurance proceeds are sufficient to cover the actual cost of restoration. Either party can also choose to terminate this Lease by giving reasonable notice to the other party.

15. SIGNS AND MARKETING.

15.1 Lessee shall not place, construct, maintain, or allow any signs affixed to the building or to the exterior of the Premises without prior written consent of the Town following Town Council review and approval. Lessee shall submit an application to the Community Development Department and, be obligated to pay all costs associated with any application process required to obtain approval for any signs.

15.2 Lessee shall not place, construct, maintain, or allow any other signs, including minor ones, visible to the exterior of the Premises without prior written consent of the Town Manager. Lessee shall submit an application to the Community Development Department and, be obligated to pay all costs associated with any application process required to obtain approval for any signs. Exterior or otherwise visible signage shall be subject to the Town’s naming policy and donation policy.

15.3 Town shall include references to Lessee on signs and marketing programs prepared by or for Town in association with Lessee’s operations on the Premises.

16. ASSIGNMENT AND SUBLETTING.

16.1 Town’s Consent Required. Lessee shall not assign this Lease, nor any interest therein, and shall not sublet or encumber the Premises or any part thereof, nor any right or privilege appurtenant thereto, nor allow or permit any other person(s) to occupy or use the Premises, or any portion thereof, without the prior written consent of Town. This Lease shall be binding upon any permitted assignee or successor of Lessee. Consent by Town to one assignment, subletting, occupation or use by another person shall not be deemed to be consent to any subsequent assignment, subletting, occupation or use by another person. No assignment, subletting, or encumbrance by Lessee shall release it from or in any way alter any of Lessee's obligations under this Lease. Lessee may have the Premises delivered to a subsidiary company of Lessee, but such arrangement shall in no way alter Lessee's responsibilities hereunder with respect to the Premises. Any assignment, subletting, encumbrances, Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
9 occupation, or use contrary to the provisions of this Lease shall be void and shall constitute breach of this Lease. Town may assign any of its rights hereunder without notice to Lessee.

16.2 No Release of Lessee. No subletting or assignment as approved by Town shall release Lessee of Lessee’s obligation or alter the primary liability of Lessee to pay the rent and to perform all other obligations by Lessee hereunder. The acceptance of rent by Town from any other person shall not be deemed to be a waiver by Town of any provision hereof. In the event of default by any assignee of Lessee or any successor of Lessee in the performance of any of the terms hereof, Town may proceed directly against Lessee without the necessity of exhausting remedies against said assignee.

17. DEFAULTS; REMEDIES.

17.1 Defaults. The occurrence of any one or more of the following events shall constitute a material default, or breach of this Lease, by Lessee:

17.1.1 Abandonment of the Premises by Lessee as defined by California Civil Code section 1951.3;

17.1.2 Failure by Lessee to make any payment of rent or any other payment required to be made by Lessee hereunder, as provided in this Lease, where such failure shall continue for a period of ten (10) business days after written notice thereof from Town to Lessee. In the event Town serves Lessee with a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes, such Notice to Pay Rent or Quit shall also constitute the notice required by this subparagraph;

17.1.3 Failure by Lessee to observe or perform any of the covenants, conditions or provisions of this Lease in any material respect where such failure shall continue for a period of thirty (30) days after written notice thereof from Town to Lessee; provided, however, that if the nature of Lessee’s default is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be deemed to be in default if Lessee commenced such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion;

17.1.4 Making by Lessee of any general arrangement or assignment for the benefit of creditors; Lessee’s becoming a “debtor” as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within sixty (60) days); the appointment of a bankruptcy trustee or receiver to take possession of all or substantially all of Lessee’s assets located at or on the Premises or of Lessee’s interest in this Lease where possession is not restored to Lessee within thirty (30) days; or the attachment, execution or other judicial seizure of all or substantially all of Lessee’s assets located at or on the Premises or of Lessee’s interest in this Lease, where such seizure is not discharged within thirty (30) days.

Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
10 17.1.5 Failure to make the Funding Commitment payments as required under this Lease Agreement for a period of six (6) months or more.

17.2 Remedies. In the event of any material default or breach by Lessee, Town may at any time thereafter, following any notice required by statute, and without limiting Town in the exercise of any right or remedy which Town may have by reason of such default or breach:

17.2.1 Terminate Lessee’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession of the Premises and Improvements to Town. In such event, Town shall be entitled to recover from Lessee all damages incurred by Town by reason of Lessee’s default including but not limited to: the cost of recovering possession of the Premises and Improvements; expenses of reletting, including necessary renovation and alteration of the Premises and Improvements; reasonable attorneys’ fees; the worth at the time of the award of the unpaid rent that had been earned at the time of termination of this Lease and the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same period that Lessee proves could be reasonably avoided.

17.2.2 Maintain Lessee’sright to possession, in which case this Lease shall continue in effect whether or not Lessee shall have abandoned the Premises. In such event, Town shall be entitled to enforce all of Town’s rights and remedies under this Lease, including the right to recover rent and other payments as they become due hereunder.

17.2.3 Pursue any other remedy now or hereafter available to Town under the laws or judicial decisions of the State of California. Town shall have all remedies provided by law and equity.

17.3 No Relief from Forfeiture After Default. Lessee waives all rights of redemption or relief from forfeiture under California Code of Civil Procedure sections 1174 and 1179, and any other present or future law, in the event Lessee is evicted or Town otherwise lawfully takes possession of the Premises by reason of any default or breach of this Lease by Lessee.

17.4 Disposition of Abandoned Personal Property. If the Lessee fails to remove any personal property belonging to Lessee from the Premises after forty-five (45) days of the expiration or termination of this Lease, such property shall at the option of Town be deemed to have been transferred to Town. Town shall have the right to remove and to dispose of such property without liability to Lessee or to any person claiming under Lessee, and the Town shall have no need to account for such property.

18. INTEREST ON PAST-DUE OBLIGATIONS.

Except as expressly provided herein, any amount due Town when not paid when due shall bear interest at the lesser of ten percent (10%) per year or the maximum rate then allowable by law from Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
11 the date due.

19. HOLDING OVER.

If Lessee remains in possession of the Premises or any part thereof after the expiration of the term or option term hereof, such occupancy shall be a tenancy from month to month with all the obligations of this Lease applicable to Lessee and at a monthly rental obligation at the market rate in effect at the time of expiration. Nothing contained in this Lease shall give to Lessee the right to occupy the Premises after the expiration of the term, or upon an earlier termination for breach.

20. TOWN’S ACCESS.

20.1 Access for Inspection. Town and Town’s agents shall have the right to enter the Premises at reasonable times, upon not less than twenty-four (24) hours prior notice to Lessee, for the purpose of inspecting same, showing same to prospective purchasers, lenders or lessees, and making such alterations, repairs, improvements, or additions to the Premises as Town may deem necessary.

20.2 Intentionally omitted

20.3 New Locks. Lessee may not install new locks on any doors without the express written consent of the Town. Lessee shall advise Town of such action and shall provide Town with keys to said locks. Lessee shall also deliver to Town the old locks with keys. Upon termination, Lessee shall leave new locks that shall become the property of Town.

21. INSURANCE.

Lessee shall purchase and maintain in full force and effect during the entire term of this Lease insurance coverage in amounts and in a form acceptable to Town as set forth in Exhibit B attached hereto and incorporated herein by reference.

Lessee shall be responsible for all losses incurred for any reason of its personal property or contents on Premises. Lessee may want to consider securing renter's liability insurance.

Lessee shall deposit with the Town Manager, on or before the effective date of this Lease, certificates of insurance necessary to satisfy Town that the insurance provisions of this Lease have been complied with, and to keep such insurance in effect and the certificates therefore on deposit with Town during the entire term of this Lease. Should Lessee not provide evidence of such required coverage at least three (3) days prior to the expiration of any existing insurance coverage, Town may purchase such insurance, on behalf of and at the expense of Lessee to provide six months of coverage.

Town shall retain the right at any time to review the coverage, form, and amount of the insurance required hereby. If, in the opinion of the Town’s Risk Manager (or comparable official), the insurance provisions in this Lease do not provide adequate protection for Town and for members of Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C

ITEM NO. 8.
12 the public using the Premises, the Town Manager may require Lessee to obtain insurance sufficient in coverage, form, and amount to provide adequate protection as determined by the Risk Manager.

Town'srequirements shall be reasonable and shall be designed to assure protection from and against the kind and extent of risk that exists at the time a change in insurance is required.

The Town Manager or designee shall notify Lessee in writing of changes in the insurance requirements. If Lessee does not deposit copies of acceptable insurance policies with Town incorporating such changes within sixty (60) days of receipt of such notice, or in the event Lessee fails to maintain in effect any required insurance coverage, Lessee shall be in default under this lease without further notice to Lessee. Such failure shall constitute a material breach and shall be grounds for immediate termination of this Lease at the option of Town.

The procuring of such required policy or policies of insurance shall not be construed to limit Lessee’s liability hereunder nor to fulfill the indemnification provision and requirements of this Lease. Notwithstanding the policy or policies of insurance, Lessee shall be obligated for the full and total amount of any damage, injury, or loss caused by or connected with this Lease or with use or occupancy of the Premises.

22. DISPUTE RESOLUTION.

22.1 Unless otherwise mutually agreed to, any controversies between Lessee and Town regarding the construction or application of this Lease, and claims arising out of this Lease or its breach shall be submitted to mediation within thirty (30) days of the written request of one Party after the service of that request on the other Party.

22.2 The Parties may agree on one mediator. If they cannot agree on one mediator, the Party demanding mediation shall request the Superior Court of Santa Clara County to appoint a mediator. The mediation meeting shall not exceed one day (eight (8) hours). The Parties may agree to extend the time allowed for mediation under this Lease.

22.3 The costs of mediation shall be borne by the Parties equally.

22.4 Mediation under this section is a condition precedent to filing an action in any court. In the event of litigation arising out of any dispute related to this Lease, the Parties shall each pay their respective attorney's fees, expert witness costs and cost of suit, regardless of the outcome of the litigation.

23. NON-LIABILITY OF OFFICIALS AND EMPLOYEES OF THE TOWN.

No official or employee of Town shall be personally liable for any default or liability under this agreement.

24. NON-DISCRIMINATION

26.1 Non-discrimination in Lease Activities. Lessee agrees that in the performance of this Docusign Envelope ID: 70F22342-67C3-4C2F-93CC-57473C49A87C